#Liquidity101 📘 #Liquidity101 – The money that moves the market If you've ever bought a token and couldn't sell it without losing a lot... you encountered low liquidity. But what exactly is liquidity in crypto? Liquidity is the ease of buying or selling an asset without significantly affecting its price. When there are many buyers and sellers, there is high liquidity, which means better prices and quick execution. When there are few, liquidity is low, causing high spreads, slow orders, and more risk. High liquidity means less unexpected volatility, quick execution, and a smaller difference between buy and sell prices. On the contrary, low liquidity implies the risk of “slippage” (the price changes while you are buying), difficulty in exiting a position, and potential price manipulation. You can see the liquidity in the order book of an exchange or, on DeFi platforms, by checking the liquidity pool (TVL) before trading. New or rare tokens often have low liquidity, so be careful there! A good tip: don’t just look at whether a token “is going to rise.” Also, make sure you can sell when you need to. Without liquidity, there is no exit. Learn to swim, not to sink. #Liquidity101 #CryptoBasics #TradingTips #BinanceLearn