#Liquidity101
Liquidity 101:
Liquidity refers to how easily an asset can be bought or sold without causing big price changes. In crypto, high liquidity means tight spreads, faster trades, and less slippage—essential for both traders and investors.
Centralized exchanges like Binance provide liquidity through order books, while decentralized platforms use liquidity pools. More liquidity means healthier markets and better price stability, especially during high volatility.
Low liquidity, on the other hand, can lead to wild price swings and trading delays. Whether you're a day trader or a long-term holder, understanding liquidity helps you enter and exit positions more efficiently and with less risk.
In short, liquidity keeps the crypto market flowing—know it, use it, master it.
