#Liquidity101
💧 #Liquidity101 – Why It Matters in Crypto Trading 💧
Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity = faster trades, tighter spreads, and better prices. 🔁
Major coins like BTC and ETH have high liquidity, while lesser-known tokens may have low liquidity—leading to slippage and delays. ⚠️
Whether you're trading on a CEX or DEX, always check the order book and volume. More liquidity = smoother trading experience. 📊
Pro tip: Avoid trading large amounts of low-liquidity assets!