#Liquidity101
🌊 Liquidity 101: What is liquidity in crypto?
🔹 Liquidity is the ability to quickly buy or sell an asset without a significant change in price.
High liquidity:
⚡ Fast transactions
💵 Small spread between buy/sell prices
👥 Many buyers and sellers
Low liquidity:
🐌 Slow transactions
📉 Possible sharp price fluctuations
🧍♂️ Few market participants
🏦 CEX usually has higher liquidity,
🧬 DEX — depends on liquidity pools.
💡 Conclusion:
The higher the liquidity — the safer and more convenient it is to trade! 😉