##Liquidity101

#Liquidity101 ๐Ÿ’ง

Liquidity is how easily an asset can be bought or sold without affecting its price.

In simple terms:

๐Ÿ’ธ High Liquidity = More buyers & sellers = Fast trades, stable prices

๐Ÿ”’ Low Liquidity = Fewer participants = Slower trades, bigger price swings

For example, Bitcoin has high liquidityโ€”it'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 youโ€™ll get.

โœ… Always check liquidity before investing!

#CryptoBasics #TradingTips #Crypto101 #FinancialLiteracy