#Liquidity101 💧 #Liquidity101: The Lifeblood of Every Trade

If you don’t understand liquidity, you might be leaving profits on the table — or worse, getting wrecked. Let’s simplify it 👇

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1️⃣ What Is Liquidity?

Liquidity = How easily you can buy/sell a token without big price changes.

⚖️ More buyers + sellers = smoother trades

🐌 Less liquidity = price jumps + slippage

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2️⃣ Why Liquidity Is 🔑

✅ Instant trade execution

✅ Lower slippage

✅ Tighter spreads

✅ Easier exits during market panic

🔥 Especially crucial for large trades & volatile tokens

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3️⃣ Where to Check Liquidity?

🔍 On CEXs:

→ Look at order book depth & 24h volume

🔍 On DEXs:

→ Check TVL, LP size, slippage %

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4️⃣ CEX vs DEX Liquidity

🏛️ CEX: Centralized market makers = deeper liquidity

🌐 DEX: Depends on users providing liquidity (LPs) — varies by pair

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5️⃣ Low Liquidity = High Risk

⚠️ You might:

Pay more than expected

Get stuck in illiquid tokens

Face price manipulation in thin markets

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💬 Ever been stuck in a low-liquidity token?

Drop “SLIPPED 💀” if yes — or “SMOOTH 💧” if you play it smart!