#Liquidity101 📘 #Liquidity101: What is liquidity in crypto?

🔹 Liquidity = how easily an asset can be bought or sold without affecting its price.

🔹 High liquidity = smaller spread between bid and ask prices.

🔹 Low liquidity = higher risk, harder to exit positions.

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📊 #Liquidity101: Why is it important for traders?

▪️ Coins with low liquidity can experience sharp, volatile price movements.

▪️ Always check trading volume and market depth before entering a position.

▪️ CEXs and DEXs offer different levels of liquidity — keep that in mind!