#Liquidity101
Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means faster trades and tighter spreads—common in major assets like BTC or ETH. Low liquidity can lead to price slippage and delays, often seen in smaller or new tokens. Liquidity is crucial for stable markets and efficient trading. Exchanges, both CEX and DEX, rely on liquidity pools or market makers to keep trades smooth. As a trader or investor, always check liquidity before entering a position—it can make or break your trade.
#CryptoBasics #DeFi #TradingTips #MarketEducation
