#Liquidity101

Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means tight spreads and fast order execution—ideal for traders. Low liquidity leads to slippage, where your trade gets executed at an unfavorable price. CEXs usually have higher liquidity due to aggregated order books, while DEXs may struggle with thin markets. Before trading a coin, always check volume and order book depth to avoid unnecessary losses. #Liquidity101