#Liquidity101

Liquidity is the ease with which an asset can be bought or sold in the market without significantly affecting its price. In crypto assets, this is crucial to ensure fast and low-cost trades. A market with high liquidity offers lower slippage (the difference between the expected price and the executed price) and greater price stability. Liquidity can be provided by market makers or by liquidity pools in decentralized exchanges (DEXs). Projects with high liquidity are more attractive to investors, as they allow for quick entry and exit of positions. To assess liquidity, analyze trading volume, the number of orders in the book, and market depth. Always choose assets with good liquidity to operate more safely.