#Liquidity101 💧 refers to how easily an asset can be bought or sold in the market without affecting its price 📊. In crypto and finance, high liquidity means there are many buyers and sellers, allowing for smooth, quick trades 🔄. For example, Bitcoin and Ethereum usually have high liquidity due to heavy trading volume 💹. Low liquidity assets can be harder to sell and may experience price slippage 📉. Liquidity is crucial for traders and investors because it affects how efficiently they can enter or exit positions 💼. Understanding liquidity helps in managing risk and optimizing trading strategies 🧠💸.