#Liquidity101 Liquidity: or Why Your Trade Can Sink Like a Stone in the Mud

Imagine you decided to buy 1000 tokens in a decentralized desert with 12 traders and a market maker who stepped out for lunch. You hit “Buy,” and… bam! You bought at 20% higher. Congratulations! You just became a victim of liquidity with a minimum 😅

📌 What is liquidity?

It’s not water, although it sounds similar. Liquidity is the ability of an asset to be quickly bought and sold without significant impact on the price. You might have a top altcoin, but if there’s no demand for it — it’s just a precious dead weight in your wallet 🧟‍♂️

📉 Slippage — the invisible thief

When there are few participants in the market or low volume — you enter a trade at one price, but receive a completely different one. And, as always, a worse one. It’s particularly fun on DEXes, where “liquidity pool” is not a pool, but a puddle after the rain ☔