#Liquidity101 In crypto trading, there are *two main types of liquidity*:

1. *Market Liquidity*:

- Refers to how easily you can buy or sell an asset without affecting its price.

- High liquidity = quick trades with minimal price change (e.g., Bitcoin).

- Low liquidity = slow trades, large price impact (e.g., small altcoins).

2. *Exchange Liquidity*:

- Measures how many buy/sell orders exist on a trading platform.

- Centralized exchanges (CEX) often have higher liquidity than decentralized exchanges (DEX).

*More liquidity = better prices and faster execution*. It’s crucial for active traders.