#Liquidity101
Liquidity is the ease with which an asset can be bought or sold without significantly affecting its price. In the crypto world, it is key to operating efficiently. A pair with low liquidity can cause slippage and partial order execution. That is why projects with high liquidity, like BTC or ETH, are preferred by active traders. Additionally, in DEXs, liquidity providers receive rewards, but they also face risks like impermanent loss.
