#Liquidity101

Liquidity is the lifeblood of any market — including crypto.

💧 It refers to how easily an asset can be bought or sold without causing big price changes.

📈 High liquidity = tighter spreads, faster execution, and lower slippage.

📉 Low liquidity = volatile prices and riskier trades.

CEXs often offer higher liquidity due to centralized order books, while DEXs can vary based on user activity and pools.

Always check volume and depth before entering a position.

In trading, liquidity isn’t just a metric — it’s a strategy.

#Liquidity101 #CryptoTrading #DeFiBasics #MarketTips