#Liquidity101

#Liquidity101

One of the most underestimated concepts in crypto

What is Liquidity?

How easily an asset can be bought or sold without affecting its price.

High Liquidity

✔️ Tight spreads

✔️ Faster trades

✔️ Less slippage

Example: BTC/USDT on Binance

Low Liquidity

❌ Wide spreads

❌ Slower execution

❌ Price swings

Example: Small-cap tokens on low-volume DEXs

Why it matters?

Liquidity = smoother trading, fairer prices, and better DeFi UX.

If you're aping into a coin with low liquidity, you're risking more than you think.

TL;DR

More buyers + sellers = more liquidity = better trading experience.