#CEXvsDEX101

2. Liquidity in centralized vs decentralized exchanges

In a CEX (like Binance), liquidity is provided by order books.

In a DEX (like Uniswap), liquidity is provided by users through liquidity pools.

- What is liquidity in cryptocurrencies?

The ability of an asset to be bought or sold quickly without significantly affecting its price.

For example, Bitcoin and Ethereum have high liquidity because there are many active buyers and sellers.