#Liquidity101 Liquidity is an indicator of how quickly and without significant losses in price an asset can be bought or sold. In markets with high liquidity (for example, Bitcoin or Ethereum on major CEX), you can enter or exit a position almost instantly. This reduces the risk of slippage and makes trading more predictable.

In low-liquidity markets, the situation is different: even a small transaction can significantly impact the price, which is especially critical for large traders. This is why institutional investors choose pairs and platforms with high liquidity.

It is also important to consider the depth of the order book — not just the presence of orders, but also their volume. Liquidity is not just convenience; it is safety and control over transactions.

#Liquidity101