#Liquidity101

**#Liquidity101: Understanding the Lifeblood of Markets**

Liquidity is the ease with which an asset can be bought or sold without affecting its price. High liquidity means faster transactions & tighter spreads, while low liquidity can lead to slippage & volatility.

**Why it matters (2025 Update):**

- **Crypto Markets:** DeFi innovations & institutional adoption are boosting liquidity pools.

- **TradFi:** AI-driven algos optimize liquidity in real-time.

- **Regulations:** New compliance rules impact market-making strategies.

**Pro Tip:** Always check trading volume & order book depth before entering a position!

Stay liquid, stay agile. 💧