#Liquidity101 Liquidity101 – Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means tight spreads, fast trades, and stable prices – perfect for active traders. Low liquidity can lead to slippage and volatility, especially in large orders. Centralized exchanges usually offer higher liquidity due to larger user bases, while decentralized exchanges can vary based on pool sizes. For investors, strong liquidity means easier entry and exit. For projects, it builds trust. Always check trading volume and order book depth – because in crypto, liquidity isn’t just a metric, it’s your trade’s backbone.