Liquidity is one of the most underrated but essential aspects of trading. It refers to how quickly and easily an asset can be bought or sold without causing a significant impact on its price. High liquidity means tighter spreads, faster execution, and less slippage — all things that benefit traders. Low liquidity, on the other hand, can lead to volatile price swings and difficulties exiting positions. Whether you're trading on a CEX or a DEX, always check liquidity before jumping into a trade. It’s not just about price action — it’s about whether the market can handle your move.
