#Liquidity101 Liquidity in crypto refers to how easily an asset can be bought or sold without affecting its price. High liquidity means there are many buyers and sellers, so trades happen quickly and at stable prices—this is common in major coins like Bitcoin and Ethereum. Low liquidity can lead to price slippage and delayed transactions. Centralized exchanges (CEXs) usually offer higher liquidity due to large user bases, while decentralized exchanges (DEXs) may have lower liquidity depending on the trading pair. Liquidity is crucial for active traders and investors, as it affects the ease, speed, and cost of entering or exiting positions in the market.