#Liquidity101
The 3 Types of Liquidity You Should Know | #Liquidity101
Let’s dive deeper into liquidity—because not all liquidity is created equal.
Here are 3 key types every savvy investor or crypto enthusiast should know:
1. Market Liquidity – This is what most people mean when they say “liquidity.” It's how easily an asset can be traded on the market. The more buyers and sellers, the better the liquidity.
2. Exchange Liquidity – Not all exchanges are created equal. A token might have high liquidity on one platform and low on another. Always check before trading!
3. Protocol/Pool Liquidity – In DeFi, this refers to the liquidity locked in smart contracts or pools. High protocol liquidity = smoother swaps and less volatility.
💡 Pro tip: Always DYOR on where the liquidity is coming from. Is it organic or incentivized? Sustainability matters.
Understanding these types gives you an edge—and that’s what #Liquidity101 is all about.
> Knowledge is power. And in crypto, liquidity is king. 👑