#Liquidity101

💧Liquidity 101: The Lifeblood of Financial Markets

Liquidity refers to how easily an asset can be bought or sold without affecting its price. In crypto and traditional markets, high liquidity means fast trades, stable prices, and lower risk.

🟢 High Liquidity = More buyers & sellers → Easier, faster trades.

🔴 Low Liquidity = Fewer participants → Price slippage, delays.

Think of it like water in a bottle—more liquid means smoother flow.

For traders, liquidity is crucial for entering and exiting positions efficiently.

Tip: Always check liquidity before trading—especially in small-cap tokens.