#Liquidity101 **#Liquidity101: The Lifeblood of Markets**
Liquidity measures how easily an asset can be bought or sold without impacting its price. High liquidity (like major stocks or $BTC )means tight spreads and fast trades. Low liquidity (small-cap altcoins) leads to slippage and volatile prices.
**Why it matters:**
✔ Better pricing & faster execution
✔ Lower transaction costs
✔ Reduced risk of getting stuck in a trade
**Sources of liquidity:**
- High trading volume
- Market makers & institutional players
Trade liquid assets for efficiency, but watch illiquid markets for hidden opportunities (with higher risk!). #TradingSmart #CryptoBasics
