#Liquidity101 #Liquidity101

Liquidity refers to how easily an asset can be bought or sold without affecting its price. In crypto and stocks, high liquidity means fast trades with minimal price changes—think Bitcoin or Apple stock. Low liquidity means fewer buyers/sellers, leading to slippage or price swings. Liquidity is crucial for stable prices and efficient trading. Centralized exchanges usually offer higher liquidity due to more users, while some decentralized platforms may have lower liquidity. Traders and investors prefer liquid markets for better entry and exit points. Always check liquidity before trading—it's a key sign of a healthy market. #CryptoBasics #MarketTips