#Liquidity101

💧 #Liquidity101 – Why It Matters in Crypto 💹

Liquidity = How easily you can buy or sell an asset without affecting its price too much.

🔍 Think of it like this:

• High liquidity = Many buyers & sellers

• Low liquidity = Harder to trade, bigger price swings

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🔄 Why Liquidity Matters:

✅ Tighter spreads – better prices for traders

✅ Faster execution – orders fill quickly

✅ Less slippage – predictable pricing

⚠️ Low liquidity can lead to big price drops when whales sell!

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💡 Tip: Always check trading volume and liquidity before making big moves.

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