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

Liquidity is the ability to buy/sell an asset quickly without significantly affecting its price.

🔹 **Why is it important?**

- Reduces the bid/ask spread

- Faster transactions, lower fees

- Avoids "slippage" during high volume

🔹 **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 placing an order

✅ Avoid coins with excessively wide spreads

✅ Prioritize DEX pools with high TVL

#TradingTips #DeFi101

(110 words - Brief explanation + real examples + application tips)