#Liquidity101 📢What is liquidity in crypto and why is it key? 💧

Liquidity is the ease with which an asset (such as Bitcoin or a fiat currency like USD) can be bought or sold without affecting its price.

In the Crypto world, it is essential because:

✅ It reduces slippage (the difference between expected and executed price).

✅ It allows for quick trades without large fluctuations.

✅ It attracts more investors, as liquid markets are safer.

🔹 Liquidity in crypto vs. fiat:

- Stablecoins like #USDT or #USDC usually have high liquidity due to their parity with the dollar.

- The BTC/USD or ETH/EUR pairs on exchanges like #Binance have high liquidity.

- Cryptos with low market capitalization (altcoins) may suffer from low liquidity, increasing their volatility.

💡 Tip: Before trading, check the volume and the order book. Liquidity is your ally!