#Liquidity101 #Liquidity101 – The Lifeblood of Any Market

Liquidity is what keeps a market moving smoothly. In simple terms, it refers to how easily an asset can be bought or sold without affecting its price.

🔹 High Liquidity = Fast trades, tighter spreads, less slippage.

🔹 Low Liquidity = Price jumps, wider spreads, and risky entries/exits.

In crypto, liquidity is essential—especially for new tokens, altcoins, or DeFi platforms. Centralized exchanges (CEXs) usually offer higher liquidity, while Decentralized exchanges (DEXs) can vary based on trading volume and token popularity.

Before you dive in, always check the liquidity. It’s your exit plan.

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