#Liquidity101 #Liquidity101 explains how easily an asset can be bought or sold without affecting its price. High liquidity means there are lots of buyers and sellers, allowing fast trades with minimal price changes—like with Bitcoin or major stocks. Low liquidity means fewer participants, which can lead to price slippage and delays. Liquidity matters because it affects trade efficiency, market stability, and price accuracy. Centralized exchanges often offer higher liquidity due to large user bases, while decentralized ones may vary. For traders and investors, choosing assets or platforms with strong liquidity helps reduce risk and improve execution. In short, liquidity keeps markets flowing smoothly.