#交易流动性 trading liquidity refers to the ability to quickly buy and sell assets in the market without causing significant price fluctuations. Simply put, it's like 'buying vegetables at the market':

High liquidity: Many buyers and sellers, able to transact at reasonable prices at any time (like Bitcoin).

Low liquidity: Few buyers and sellers, when you want to sell, there’s no one to take over, or you need to significantly lower the price (like obscure altcoins).

Important significance:

1️⃣ Stabilize prices: When liquidity is high, large transactions won't severely impact prices;

2️⃣ Reduce transaction costs: The bid-ask spread is small (for example, the spread for Bitcoin is only 0.1%, while obscure coins may be 5%);

3️⃣ Enhance market confidence: Investors are willing to enter the market, avoiding the situation of 'wanting to escape but can't' (for example, during the LUNA crash in 2022, liquidity dried up, resulting in a 99% drop in one day);

4️⃣ Reflect asset quality: Mainstream coins usually have better liquidity than altcoins.

💡 Key point for beginners: Liquidity = cashing ability, check trading volume and the thickness of buy/sell orders before buying assets!