#Liquidity101 liquidity on Binance refers to the ease with which you can buy or sell a digital asset without significantly affecting its price. In other words, it is the ability to convert an asset into cash or another asset quickly and without large losses.

*Why is liquidity important?*

- It allows for smooth and efficient transactions

- It provides a fair valuation of assets

- It contributes to market stability

- It offers flexibility and accessibility to investors