#TradingPairs101 Why does liquidity matter?

You can 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 change in price.

• 🔼 High liquidity = small spread, fast transaction.

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

📊 Where is liquidity higher?

• ✅ CEX (Binance, Bybit) — market 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 — can’t sell

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

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

💡 Tips for beginners:

✔️ Check trading volumes and market depth before entering

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

✔️ Don’t enter large sums 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.