#Liquidity101 **#Liquidity101 - Understand Liquidity in 1 Minute 💧**

Liquidity is the ability to quickly buy/sell assets without significantly affecting the price.

🔹 **Why is it important?**

- Reduce the bid/ask price difference (spread)

- Faster transactions, lower fees

- Avoid "slippage" when large volumes

🔹 **Where to find good liquidity:**

- Major exchanges (Binance, Coinbase)

- Popular trading pairs (BTC/USDT, ETH/USDC)

- Markets with high trading volume

**Trading Tips:**

✅ Check 24h volume before entering a trade

✅ Avoid coins with too wide a spread

✅ Prioritize DEX pools with high TVL

#TradingTips #DeFi101

(110 words - Brief explanation + real-world examples + practical tips)