#Liquidity101

Liquidity is the lifeblood of every market. In #Liquidity101, we explore why high liquidity means tighter spreads, faster execution, and lower slippage. A coin might have high volume but low liquidity if the order book is thin. Illiquid assets are risky—your buy or sell might move the market. Centralized exchanges usually offer better liquidity, but DEXs are catching up with AMMs and liquidity pools. Traders should always check liquidity before entering large positions. When I trade altcoins, I always check the bid/ask depth and historical volume—because bad liquidity = bad fills = bad trades.