💧 #Liquidity101 – Why It Matters in Crypto Trading 📊
Liquidity = how easily you can buy or sell an asset without major price changes.
🔹 High liquidity (like ETH/USDT): Tighter spreads, faster trades, less slippage.
🔹 Low liquidity: Bigger spreads, slower execution, potential price jumps.
In CEXs, market makers provide liquidity. In DEXs, it comes from liquidity pools.
💡 Pro tip: Always check liquidity before entering or exiting a trade—especially with altcoins!
How do you manage liquidity risks in your trades?
