#Liquidity101 In simple terms, liquidity in crypto means how easily and quickly an asset can be bought or sold without significantly changing its price. High liquidity, like on Binance, means smoother trades, tighter price spreads, and less slippage. Conversely, low liquidity can lead to delayed trades, wider spreads, and price volatility, especially for larger orders.

Key points for Binance and other exchanges:

High liquidity: Facilitates smooth and immediate trades with minimal price impact.

Low liquidity: Can result in delayed trades and wider price fluctuations, potentially impacting your trades.

Factors influencing liquidity: Trading volume, order book depth, and the popularity of the asset.

Importance: Affects trade execution, price stability, and overall market health.

Where to find: CEXs (like Binance) often have deeper liquidity than DEXs, especially for larger assets.

Tips: Always check trading volume and order book depth before placing orders, especially for large transactions. #Liquidations