#USChinaTradeTalks **#Liquidity101**

Liquidity refers to how easily an asset can be bought or sold without affecting its price. In crypto and traditional markets, **high liquidity** means assets trade quickly with minimal price changes—common in popular coins like Bitcoin or Ethereum. **Low liquidity** assets may face slippage, meaning prices change significantly between placing and executing an order. Liquidity is crucial for efficient markets, tighter spreads, and fair pricing. Centralized exchanges often offer higher liquidity due to large user bases, while decentralized exchanges rely on liquidity pools. Traders should always consider liquidity before entering or exiting a position to avoid unexpected costs or delays.