#Liquidity101

What is liquidity and why is it important in cryptocurrency?

🔹 Liquidity is the ability to quickly buy or sell an asset at a fair price without significant market fluctuations.

📈 High liquidity means:

— A smaller spread between the buying and selling price

— Quick order execution

— A stable market

📉 Low liquidity can lead to:

— Price spikes during large transactions

— Delays in order execution

— Higher risk for the trader

💡 On CEX, liquidity is often higher due to market makers. On DEX, it depends on TVL and the activity of pools.

Are you trading on liquid pairs or hunting for altcoins? 👀

#CryptoBasics #defi #Liquidity #cryptotrading #Blockchain101 #MarketTips #TradingStrategy #CryptoEducation #Web3 #Altcoins #DEX #CEX