#Liquidity101 Market Vitality** 💧

Liquidity is the foundation of any financial system, especially in the world of cryptocurrencies. It determines how quickly and efficiently an asset can be bought or sold without significant changes in price.

🚀 **High Liquidity** – this is when the market has many buyers and sellers. In such conditions, transactions occur quickly, and the difference between buying and selling prices (spread) is minimal.

⚠️ **Low Liquidity** – a limited number of transactions can lead to significant price fluctuations, increasing risks for traders.

🔄 **Liquidity Pools** – a key mechanism in DeFi, where users lock their assets in smart contracts, providing liquidity for trading directly on decentralized platforms.

💡 **Market Makers** – market participants who create buy and sell orders, maintaining liquidity stability.

Do you check the liquidity of assets before trading? Share your thoughts! 🔥