#Liquidity101

Liquidity means how easily you can buy or sell an asset without affecting its price. High liquidity = fast trades, tight spreads, stable prices (like BTC on major exchanges). Low liquidity = harder to trade, bigger price swings, slippage risk (common with small-cap tokens).

CEXs usually offer more liquidity than DEXs, but it varies by asset. Liquidity is crucial for active traders and investors—it affects execution speed, cost, and strategy.

Always check liquidity before trading—it's the hidden factor behind smooth or frustrating trades.

#CryptoBasics #LiquidityMatters #TradingTips #Liquidity101