##Liquidity101
#Liquidity101 ๐ง
Liquidity is how easily an asset can be bought or sold without affecting its price.
In simple terms:
๐ธ High Liquidity = More buyers & sellers = Fast trades, stable prices
๐ Low Liquidity = Fewer participants = Slower trades, bigger price swings
For example, Bitcoin has high liquidityโit's traded globally with many participants. But a new token with few holders may have low liquidity, making it harder to buy or sell without a big price change.
Why it matters:
Liquidity impacts how fast you can enter/exit trades and what price youโll get.
โ Always check liquidity before investing!
#CryptoBasics #TradingTips #Crypto101 #FinancialLiteracy
