#CryptoCharts101 Dimply today ๐๐๐๐๐๐ 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 ๐
* 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 ๐ฃโโ๏ธ
* 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
