What is Liquidity?
💧 Liquidity = how easily an asset can be bought/sold without impacting price.
Why liquidity matters:
• Tight bid-ask spreads
• Low slippage
• Easier large trades
High liquidity = healthier market.
Low liquidity = more volatility.
Where liquidity comes from:
• Centralized market makers
• DeFi liquidity pools
• Institutional participation
✅ Always check liquidity before entering/exiting positions!
❓ Do you check liquidity metrics when trading?
