#Liquidity101 – What is Liquidity in Crypto? 💧📈

Liquidity refers to how easily an asset can be bought or sold in the market without causing a major price change.

🔹 High Liquidity = Easy to buy/sell, tight bid-ask spread, low price volatility.

Examples: $BTC, $ETH on major exchanges.

🔹 Low Liquidity = Harder to trade, wider spread, potential price slippage.

Examples: New or low-cap tokens on small exchanges.

Why It Matters?

✔️ Smooth trading

✔️ Less price manipulation risk

✔️ Better price discovery

💡 Always check liquidity before investing, especially in altcoins or DEX markets!