#Liquidity101 What Is Liquidity – And Why Should You Care?
Liquidity is how easily an asset can be bought or sold without causing major price changes. High liquidity means smoother, faster transactions.
Top coins like Bitcoin and Ethereum are very liquid. But small-cap tokens often lack liquidity – selling them may lead to big price drops.
Liquidity matters for both traders and investors: it affects how quickly you can enter or exit the market. Always check trading volume and order book depth before making moves.
Have you ever gotten stuck with a low-liquidity token?
