#Liquidity101 💧 What is liquidity? And why does it matter to you as an investor?

Liquidity means how easily an asset can be converted to cash without significantly affecting 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 artwork = 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.