#Liquidity101 Why does liquidity matter?

You might find a top token, a great price, and even be right...

But without liquidity, you won't be able to sell or buy at a favorable price.

📌 What is liquidity?

Liquidity is how easily you can buy or sell an asset without a significant price change.

• 🔼 High liquidity = small spread, quick transaction.

• 🔽 Low liquidity = large spread, slippage, order hangs.

📊 Where is liquidity higher?

• ✅ CEX (Binance, Bybit) — order book depth, millions in volume.

• ⚠️ DEX (Uniswap, PancakeSwap) — depends on the pool. For new tokens — almost 0.

• 🪙 Tokens with small market capitalization = almost always low liquidity.

💣 Dangers of low liquidity:

• ❌ Bought — cannot sell

• 💸 Price “slipped” — and you lost 10%

• 😵 Someone pumped 10K into the token — and crashed the chart

💡 Tips for beginners:

✔️ Check trading volumes and order book depth before entering

✔️ In DeFi — look at the pool size (TVL, Pool Size)

✔️ Don't enter with a large sum into illiquid coins without understanding the risks

💬 Have you ever lost money due to low liquidity?

👇 Share your experience — let beginners learn from others' mistakes, not their own.