#Liquidity101

💧 Liquidity: The Lifeline of Finance & Crypto

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🔍 What is Liquidity?

It’s how fast you can turn assets into cash — without tanking their value.

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🚨 Why Liquidity Matters:

✅ Pay short-term bills

✅ Handle emergencies

✅ Grab investment opportunities

✅ Stay financially secure

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📊 Types of Liquidity:

• Market Liquidity: Can you buy/sell quickly without major price shifts?

• Accounting Liquidity: Can a business meet its short-term obligations?

• Financial Liquidity: How cash-ready are your assets?

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📏 Key Ratios to Know:

1. Current Ratio = Assets ÷ Liabilities

2. Quick Ratio = (Assets – Inventory) ÷ Liabilities

3. Cash Ratio = Cash ÷ Liabilities

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💡 Bottom Line:

More liquidity = more freedom. Whether you’re trading crypto or managing a business, liquidity keeps you agile and stress-free.