#Liquidity101 — is the foundation of understanding liquidity in financial markets. Liquidity is the ability of an asset to be quickly sold or purchased without significantly impacting the price. Highly liquid markets (such as Bitcoin or stocks of large companies) have many buyers and sellers, which ensures stability and a smaller spread. Low liquidity can lead to sharp price fluctuations and difficulties in order execution. In DEX, liquidity is often supported by pools (AMM), in CEX — by deep order books. #Liquidity101 helps to understand why liquidity is critically important for effective trading and minimizing risks.