💧 What is liquidity in the crypto world? #Liquidity101
Liquidity is one of the key elements in financial markets, especially in the crypto space. It refers to the ease with which an asset can be bought or sold without significantly affecting its price 📉📈.
For example, pairs like ETH/USDT or BTC/USDT have high liquidity due to high volumes. This allows for quick transactions with low slippage. In contrast, new or less-known projects often have low liquidity, making it difficult to enter or exit the market without impacting prices 🚨.
In 2025, with the growth of DeFi and the arrival of new L2 solutions (like Base or zkSync), liquidity is also shifting away from centralized exchanges (CEX), increasing the importance of liquidity pools and automated market makers like those on Uniswap or Curve 🔄.
Managing liquidity well is essential to avoid losses and make the most of market opportunities! 🚀