#Liquidity101

Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. In crypto and finance, high liquidity means there are many buyers and sellers, making trades fast and prices stable. Low liquidity can lead to slippage—when the executed price differs from the expected one. Centralized exchanges often have higher liquidity than decentralized ones. Liquidity is crucial for active traders, especially in volatile markets. It also reflects market health and investor confidence. Always consider liquidity when choosing assets or platforms to trade on. Better liquidity means smoother trades and more predictable outcomes. #Liquidity101