#Liquidity101

Liquidity is a key indicator in every market – it indicates how easily an asset can be bought or sold without significant price changes.

High liquidity means many buyers and sellers – transactions are quick and at a fair price. Markets with high volume, like Bitcoin or Ethereum, usually have high liquidity.

Low liquidity is associated with risk – prices can change dramatically, and transactions can be difficult to execute.

For traders, liquidity means safety and predictability. The greater the liquidity, the smaller the spreads and better order execution.

Always check the liquidity of a market before entering a trade – it can significantly impact your profit or loss.