#中心化与去中心化交易所 **Core Role of Trading Liquidity**

Liquidity is the lifeline of financial markets, referring to the ability of an asset to be quickly converted to cash without significantly impacting its price. High liquidity markets (such as mainstream cryptocurrencies or blue-chip stocks) have small bid-ask spreads and fast transaction speeds, making them suitable for high-frequency trading; low liquidity markets (such as niche tokens) may face risks of slippage and delayed transactions.

Liquidity directly affects trading costs and strategies:

1. **Cost Control**: Trading fees are lower in high liquidity markets; for instance, the slippage of the ETH/USDT trading pair on Binance is far lower than that of niche DEXs.

2. **Price Discovery**: When liquidity is sufficient, prices are closer to their true value, reducing the possibility of manipulation.

3. **Market Stability**: Platforms with high liquidity (such as Uniswap or leading CEXs) can better withstand the impacts of extreme market conditions.

Whether it's large institutional trades or small retail operations, liquidity is a core indicator for choosing a trading platform.