#Liquidity101 #Liquidity101 Simply put, liquidity in crypto is how easily and quickly you can buy or sell a cryptocurrency without significantly affecting its price.

Think of it like this:

* High Liquidity = Smooth Sailing 🌊

* Lots of buyers and sellers

* Easy to enter and exit trades at your desired price

* Minimal "slippage" (the difference between your expected trade price and the actual execution price)

* More stable prices and less volatility

* Generally indicates a healthy and active market!

* Low Liquidity = Choppy Waters 🚣‍♀️

* Fewer buyers and sellers

* Harder to execute large trades without moving the price

* Higher slippage, meaning you might pay more or receive less than you expected