#Liquidity101

Liquidity is the lifeblood of any financial market—and #crypto is no exception! 💧 But what exactly is it, and why does it matter? Let’s break it down:

🔹 **What is Liquidity?**

Liquidity refers to how easily an asset can be bought or sold without causing major price swings. High liquidity = smoother trades, tighter spreads, and better prices!

🔹 **Why Does It Matter?**

✅ **Lower Slippage** – Get closer to your desired price

✅ **Faster Transactions** – More buyers & sellers = quicker trades

✅ **Market Stability** – Reduces volatility and manipulation risks

🔹 **How to Spot Liquid Markets?**

📊 High trading volume

⚡ Tight bid-ask spreads

🔄 Deep order books