#Liquidity101 – What is liquidity in crypto?*
*Liquidity* is the ease with which an asset can be bought or sold without significantly impacting its price. In crypto, the more liquidity there is on a trading pair, the faster and more stable the exchanges are.
🔹 *Good liquidity =* Less slippage, fast transactions.
🔹 *Low liquidity =* High volatility, difficult execution.
*Liquidity pools* on DEX play a crucial role in ensuring this fluidity.
Understanding liquidity means better trading. 😉