#Liquidity101
Liquidity = The ease of converting an asset to cash quickly and without a significant change in its price.
It is divided into two types...
1. High Liquidity:
Like BTC or ETH on major exchanges, bought and sold quickly at stable prices.
2. Low Liquidity:
Like small coins or new tokens, difficulty in finding buyers or sellers.
How to assess liquidity
Check the daily trading volume of the pair you intend to trade on
And monitor the depth of the order book; if you find large gaps between the buy and sell price, this is an indicator of weak liquidity
