Here’s a short and simple #Liquidity101 guide:
💧 #Liquidity101: What Is Liquidity in Trading?
🔹 Definition:
Liquidity = How easily and quickly you can buy or sell an asset without affecting its price.
✅ High Liquidity
Lots of buyers & sellers
Tight bid-ask spread
Fast execution, stable prices
Example: BTC, ETH, Apple stock
⚠️ Low Liquidity
Few market participants
Large price swings
Harder to enter/exit trades
Example: Small altcoins or penny stocks
🧠 Why It Matters:
More liquidity = less slippage, lower risk
Always check liquidity before trading!
