#Liquidity101 Understanding liquidity is crucial in crypto trading. 💧📊

So, what is liquidity?

🔹 **Liquidity** refers to how easily an asset can be bought or sold without significantly affecting its price.

🔹 High liquidity means faster trades, smaller spreads, and more price stability. It's common on major exchanges like Binance with popular assets like BTC or ETH.

🔹 Low liquidity can lead to price slippage, delays, and difficulty exiting positions—often seen with new or low-volume tokens.

Why it matters: Traders prefer high liquidity for smoother transactions and better market efficiency.

Always check liquidity before placing large trades to avoid surprises.