#Liquidity101 #Liquidity101 – Understanding Liquidity in Crypto (100 Words)
Liquidity in crypto means how easily you can buy or sell a coin without affecting its price. High liquidity = many buyers and sellers, so trades happen quickly at stable prices (e.g., Bitcoin on major exchanges). Low liquidity = fewer traders, making prices more volatile and harder to execute large trades. Liquidity depends on trading volume, exchange popularity, and token demand. Good liquidity is crucial for smooth trading, better prices, and lower slippage. Always check liquidity before trading—especially with new or small tokens. Smart traders choose liquid markets! #CryptoBasics #Liquidity101 #Shihab1Star #CryptoTradingTips