#Liquidity101

Liquidity is one of the most important concepts in the world of financial markets, especially in the field of cryptocurrencies. Liquidity is defined as the ease of buying or selling a financial asset quickly without significantly affecting its price. When an asset is highly liquid, it means there are a large number of buyers and sellers, making it easy to execute trades. For example, a currency like Bitcoin is considered highly liquid due to its large daily trading volume, which means it can be sold or bought quickly.

High liquidity reduces slippage 📈 and increases market efficiency.

In markets with low liquidity, you may face difficulties executing your orders at the price you want. Therefore, it is essential for traders to know the level of liquidity in the market before making their decisions.