#CryptoSecurity101 The Importance of Liquidity in Trading:

Ease of Entry and Exit:

Liquidity facilitates the entry and exit of investors from the markets without affecting the prices of assets.

Risk Reduction:

In liquid markets, it is easier to determine fair prices and avoid losses resulting from sudden price changes.

Price Determination:

Liquidity is an important factor in determining the fair price of assets, as highly liquid assets tend to have more stable prices.