🔍 #Liquidity101 | What does liquidity mean in crypto?

Liquidity in the world of crypto means how easy it is to buy or sell a cryptocurrency without its price changing significantly. When liquidity is high, the market moves smoothly, meaning you can enter and exit investments without large losses. However, when liquidity is low, a single trade can disrupt the price.

📊 Liquidity comes from the number of people trading and the amount of money available in the market. Large exchanges like Binance have high liquidity, but there are also Liquidity Pools in DeFi where people do Staking to help provide liquidity and earn from fees.