#Liquidity101 : What is liquidity in cryptocurrency? 🤔💧

Liquidity is one of the most important concepts in the trading world, especially in cryptocurrency. But what does it mean in simple terms? Let's break it down! 👇

🔄 Liquidity is the ability of an asset to be quickly bought or sold without significant price changes. The more buyers and sellers there are, the higher the liquidity.

📊 High liquidity means:

✅ Small spreads between buy/sell prices

✅ Fast order execution

✅ Lower volatility in large trades

🧊 Low liquidity means:

❌ Hard to find a counterparty

❌ Price can fluctuate significantly

❌ Larger losses when buying/selling large amounts

🏦 The highest liquidity is usually found in BTC, ETH, USDT, and coins traded on major exchanges (Binance, Coinbase, etc.).

💡 By the way, DEX (decentralized exchanges) often have lower liquidity than CEX. Therefore, for large trades, it's important to monitor market depth!