*Liquidity 101 💧📈*
Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means fast trades and tighter spreads—like trading Bitcoin or major stocks. Low liquidity means fewer buyers/sellers, larger spreads, and possible price slippage—common with small-cap coins or stocks.
In trading, *high liquidity = smoother, safer trades*. In DeFi, liquidity pools power decentralized exchanges (DEXs). Providing liquidity earns fees but also carries risks (like impermanent loss).
Always consider liquidity before entering a trade. It can make or break your strategy! 💸⚖️