#Liquidity101

Liquidity is the lifeblood of any market—crypto, stocks, or forex. It refers to how easily an asset can be bought or sold without causing a big price change.

High liquidity means:

✅ You can enter or exit trades quickly

✅ Smaller spreads between buy and sell prices

✅ Less price volatility

Low liquidity means:

⚠️ Harder to trade large amounts without slippage

⚠️ Bigger spreads and unpredictable price moves

Liquidity comes from market participants—buyers and sellers—and sometimes market makers. In crypto, liquidity pools on decentralized exchanges (DEXs) help keep things flowing smoothly.

Why care?

Good liquidity protects you from bad fills and sudden price jumps. Always check liquidity before trading to avoid surprises!

Got questions on liquidity or how to spot it? Let’s dive in!

#crypto #tradingtips #DeFi #stocks #forex #investing