#Liquidity101

Liquidity in crypto refers to how easily an asset can be bought or sold without affecting its price. High liquidity means there are many buyers and sellers, resulting in faster trades and tighter spreads. Major cryptocurrencies like Bitcoin and Ethereum have high liquidity, while smaller tokens may be harder to trade quickly. Liquidity is essential for efficient markets and reduces slippage during large transactions. Centralized exchanges usually offer greater liquidity than decentralized ones, but both rely on active participation. Always check a token’s trading volume and liquidity before investing or trading. In crypto, liquidity equals flexibility and smoother execution. #CryptoBasics 🚀🚀💪🏿