#Liquidity101 💧 #Liquidity101 – The Lifeblood of Crypto Markets
Ever tried to trade and the price slipped too much? That’s a liquidity issue!
🔍 What is Liquidity?
It’s how easily you can buy/sell an asset without affecting its price.
🔹 High Liquidity = Fast trades, low slippage, stable prices
🔹 Low Liquidity = Delays, big price swings, poor execution
📊 Where it matters:
Exchanges (CEXs/DEXs)
Liquidity Pools (AMMs like Uniswap)
Market Making strategies
💡 Pro Tip: Always check liquidity before entering large trades!
#CryptoBasics #CryptoCharts101 DeFi #Web3Education #TradingTips #Binance #MarketDepth