#Liquidity101

Why It Matters in Crypto Trading 🌊

Liquidity refers to how quickly and easily an asset can be bought or sold without affecting its price. High liquidity = faster trades and tighter spreads. Low liquidity = price slippage and slow execution.

In centralized exchanges (CEX), liquidity is often higher due to large user bases. Decentralized exchanges (DEX) rely on liquidity pools funded by users.

Whether you're a day trader or long-term investor, understanding liquidity helps you manage risk and optimize entries and exits.

💡 Tip: Always check liquidity before placing large orders!