#Liquidity101 liquidity refers to the ease with which an asset can be bought or sold without affecting its price.

The more liquid a market is, the faster the transactions and the lower the fees.

🔹 A liquid asset like BTC on Binance allows for instant buying/selling.

🔹 In contrast, a little-known token may be difficult to trade quickly, especially in high volatility.

Liquidity providers (LP) play a key role on DEX by injecting funds into the pools. On CEX, these are often the market makers.

💡 In summary: more liquidity = less slippage and stress!

Have you ever been stuck due to a lack of liquidity? Share your story!