Liquidity in Crypto 101
Liquidity means how easily you can buy or sell a token without major price change. High liquidity = faster trades, tighter spreads, and less slippage (e.g., BTC, $ETH ). Low liquidity = price volatility, delays, and high slippage (common in low-cap tokens). It comes from CEXs, DEXs (via liquidity pools), and market makers. Watch for traps like rug pulls, fake volume, and low TVL. Always check trading volume, slippage, and liquidity depth before trading. More liquidity = smoother, safer trades. In crypto, liquidity is king — protect your capital by trading where the volume flows.
