#Liquidity101 Liquidity is the ability to buy or sell an asset quickly without affecting its price.

- **High liquidity**: Easy buying/selling, stable price.

- **Low liquidity**: Difficult buying/selling, volatile price. \nLiquidity in cryptocurrencies like XRP is crucial for traders.

Examples of liquid assets: BTC, XRP, dollars.

Examples of illiquid assets: thinly traded stocks, real estate.