#Liquidity101
Liquidity in crypto refers to how easily an asset can be bought or sold without significantly affecting its price. High liquidity means tighter spreads and faster trades, making it ideal for traders. Top-tier tokens like BTC or ETH usually have high liquidity due to large volume and interest. On the flip side, low-liquidity assets might have bigger slippage and delayed executions. Liquidity is crucial for both CEXs and DEXs—without it, the market becomes inefficient. Always check liquidity before trading, especially with lesser-known tokens. A deep market equals smoother trading.
