#Liquidity101 : What is liquidity in crypto?
You often hear about “good liquidity” or “illiquid market”? Here’s what it means 👇
🔄 Liquidity is the ease with which you can buy or sell an asset without significantly affecting its price.
📈 A market with many buyers and sellers = high liquidity. Result: fast execution, reduced spread, and less unexpected volatility.
📉 A market with low volume = low liquidity. You risk paying (or selling) at a much less attractive price.
🏦 CEXs like Binance generally offer more liquidity than small platforms or certain DEXs.
💡 Tip: before trading, always check the volume and spread of an asset. It’s a key piece of data!
Do you check liquidity before entering a position? 👇