💧 #Liquidity101 — Why it matters in crypto!

Liquidity is how easily an asset can be bought or sold without affecting its price. High liquidity means smoother trades and tighter spreads—great for quick entries and exits. Low liquidity can cause slippage and volatile price swings.

On CEXs, liquidity is often high thanks to many traders and market makers. On DEXs, liquidity depends on pools provided by users, which can vary widely.

Always check liquidity before trading to avoid surprises and get the best price!