#Liquidity101 it's understanding the essence of financial markets! Liquidity is the ease of buying or selling an asset without affecting its price. In crypto, it is crucial: high liquidity = tight spreads and smooth transactions. Bitcoin and Ethereum dominate due to their high volumes, while low liquidity altcoins risk extreme volatility. Liquidity pools, like those on Uniswap, boost decentralized exchanges, but beware of impermanent losses! Market makers and centralized exchanges also ensure fluidity. In 2025, with the rise of crypto ETFs, liquidity shapes the future of investments. Ready to dive in?