#Liquidity101

🌊 #Liquidity101 – Why It Matters More Than You Think

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

💧 1. High Liquidity

→ Tight spreads, fast trades, stable prices.

→ Found in top coins like BTC/USDT or ETH/USD.

🥵 2. Low Liquidity

→ Big price swings, delayed orders, higher slippage.

→ Common in obscure tokens or during market stress.

📊 3. Why It Matters

→ Traders want smooth entries and exits.

→ DeFi users need liquid pools to avoid huge price impacts.

→ Investors should check liquidity before diving into a new token.

🧠 Pro Tip: Always check trading volume & depth before placing big orders.

More liquidity = less risk.

#CryptoTrading #DeFiBasics #CryptoTips #MarketDepth #Web3Education