#Liquidity101 I believe liquidity is crucial in the crypto world because it determines how easily assets can be exchanged without causing major price shifts. High liquidity means there's enough volume and participation in the market, which helps reduce volatility and slippage during trades. This is especially important for traders who rely on timely entries and exits. On the other hand, low liquidity can trap investors in positions or lead to unfavorable prices. Liquidity also signals the credibility and adoption of a crypto asset. In DeFi and centralized exchanges alike, liquidity is the backbone of smooth and efficient market operations.