#Liquidity101 💧 What is liquidity and why does it matter? Let’s dive in! #Liquidity101

Liquidity refers to how easily an asset can be bought or sold without impacting its price. High liquidity = fast, smooth trades with minimal slippage. Think BTC or ETH. 🔄

Low liquidity means fewer buyers/sellers—leading to bigger spreads, price volatility, and delayed orders. Smaller altcoins often face this. ⚠️

In CEXs, liquidity is provided by order books. In DEXs, it comes from liquidity pools. Both have different dynamics and risks.

Always check liquidity before trading—especially with large orders or in volatile markets. It protects your capital and boosts execution efficiency.

Trade where the flow is strong! 🌊

#CryptoTrading #MarketBasics