🌊#Liquidity101 Why It Matters! 🌊

If you’re trading crypto, there’s one word you need to understand: liquidity. Let’s break it down!

🔹 What is Liquidity?

💧 It’s all about how easily you can buy or sell an asset without causing big price changes.

✅ High liquidity = lots of buyers and sellers, tighter spreads, faster trades.

❌ Low liquidity = big price swings, slippage, and harder to get in/out.

🔹 Why does it matter?

👉 High liquidity = more efficient markets.

👉 Low liquidity = riskier moves and harder exits.

👉 It affects your trading strategy big time – especially if you’re moving size.

🔹 Where do you see it?

✅ Big tokens like BTC/ETH on major exchanges = high liquidity.

✅ Small-cap tokens on niche platforms = low liquidity (so be careful!).

💡 Pro Tip: Always check the liquidity before you trade – it can save you from unexpected surprises!