#Liquidity101

#Liquidity101: The Lifeblood of Markets

Liquidity measures how easily an asset can be bought or sold without affecting its price. In crypto, high liquidity means tight spreads, faster execution, and less price slippage—ideal for traders. Low liquidity can lead to volatile swings and difficulty entering or exiting positions. Major coins like BTC and ETH are highly liquid, while small-cap tokens may not be. Liquidity is influenced by volume, number of participants, and exchange type (CEXs usually have more). Smart traders always check liquidity before jumping in—it’s not just what you buy, but how easily you can sell. #Liquidity101

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