#Liquidity101
What is Liquidity?
Liquidity means how easy it is to buy or sell something without changing its price too much. The more people buying and selling, the better the liquidity.
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Why Liquidity Matters
Good liquidity means you can buy or sell fast at a fair price. If liquidity is low, it is hard to sell without losing money.
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Liquidity in Trading
In markets like stocks or crypto, liquidity helps traders get good prices. Big exchanges usually have better liquidity.
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How to Check Liquidity
Look at the trading volume and order book. High volume means many trades and good liquidity.
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Liquidity in CEX and DEX
Centralized exchanges (CEX) often have higher liquidity because many users trade there.
Decentralized exchanges (DEX) may have less liquidity, so prices can move more.
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Why Traders Care About Liquidity
More liquidity means less risk of big price jumps. It helps you buy or sell when you want, without waiting.