#Liquidity101 Liquidity is one of the most important concepts in trading and investing, especially in crypto markets. It refers to how easily an asset can be bought or sold without affecting its market price. High liquidity means there are many buyers and sellers, allowing for faster transactions with minimal price slippage. Low liquidity, on the other hand, can lead to volatile price swings and difficulty executing large trades. In decentralized exchanges (DEXs), liquidity is often provided by users through liquidity pools. These pools help ensure smoother trading but can come with risks like impermanent loss. Whether you're a trader or investor, understanding liquidity helps you make smarter, more efficient moves.