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