#Liquidity101 🔹 What is Liquidity?
In simple terms, liquidity is how easily you can buy or sell a crypto asset without affecting its price.
🔸 High Liquidity = Fast trades, tight spreads, minimal slippage
🔸 Low Liquidity = Price swings, delays, and potential losses
🧠 Why It Matters:
✔ A liquid market is more stable and efficient
✔ Helps avoid major price impacts on large trades
✔ Critical for traders, investors, and even developers building DeFi apps
💡 Where does liquidity come from?
CEXs (like Binance) often rely on order books, while DEXs use liquidity pools powered by users who provide tokens to earn fees (liquidity providers).
🚨 Pro Tip: Always check the liquidity of a token before trading – especially on lesser-known pairs!
