#Liquidity101 : The Lifeblood of Markets – Why It Matters!** 💧💰

Ever wondered why some assets trade smoothly while others feel "stuck"? The answer is **liquidity**—the ease of buying/selling without drastically moving the price. Here’s why it’s crucial:

🔹 High Liquidity (e.g., BTC, blue-chip stocks):

✔️ Tight spreads (lower costs)

✔️ Faster executions at predictable prices

✔️ Less slippage in volatile markets

🔹 Low Liquidity (e.g., small-cap altcoins, penny stocks):

⚠️ Wider spreads (higher trading costs)

⚠️ Price manipulation risks

⚠️ "Illiquidity traps" – can’t exit positions easily

**Pro Tip:** Always check trading volume & order book depth before entering a trade! Low-liquidity assets = higher risk.

How do YOU assess liquidity? Share your strategies below!