#Liquidity101 - Why It Matters More Than You Think 📈

When it comes to crypto, liquidity is the ability to buy or sell an asset without causing much movement in the price. The more liquidity, the easier it is for you to trade. In this #Liquidity101 post we will detail why liquidity is an important consideration for every trader.

1️⃣ High liquidity = tight spreads - you will get a better price for buying and selling.

2️⃣ Low liquidity = higher slippage - when you are placing larger orders the prices can be quite far apart.

3️⃣ Liquidity pools (on DEXs) allow for token swaps but without enough liquidity, your trade will likely fail or become very expensive.

4️⃣ Centralized exchanges (CEXs) typically have higher liquidity than most DEXs but DEXs also play an important role.

🧠 Be sure to check volume and order book depth BEFORE making a trade especially for altcoins that are not so well known.

💬 Have you experienced slippage due to low liquidity - let us know with #Liquidity101!