#Liquidity101 Liquidity101 explains the ease of buying or selling an asset without affecting its price:
High Liquidity: Many buyers and sellers, tight spreads, fast and efficient trading (e.g., major stocks, BTC).Low Liquidity: Fewer participants, wider spreads, higher price impact (e.g., small-cap tokens).
Liquidity matters for trade execution, risk management, and pricing. Higher liquidity means smoother, more reliable trading.
#collected