Liquidity is the ease of buying or selling an asset without significantly impacting its price. High liquidity means tight bid-ask spreads and less price volatility; low liquidity can cause large price swings. I personally evaluate liquidity by checking trading volume, order book depth, and bid-ask spreads. To reduce slippage, I use limit orders, trade during high-volume periods, and avoid large orders in low-liquidity markets. Break large trades into small and monitor market depth to execute.#Liquidity101