#Liquidity101 What is liquidity? And why is it important to you as an investor?

Liquidity refers to how easily an asset can be converted into cash without a significant impact on its price. The higher the liquidity, the faster and cheaper you can enter and exit trades.

📈 Example:

– A stock of a large company like Apple = high liquidity

– A rare piece of art = low liquidity

In the crypto world, projects with low liquidity can be riskier due to price volatility and difficulty in selling.

🧠 Learning to understand liquidity = the first step in reducing risks and increasing efficiency in your trades.$BNB