#Liquidity101 Liquidity101: Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means faster trades and tighter spreads—common in popular stocks or major crypto pairs. Low liquidity leads to slippage and price volatility. In crypto, DEXs rely on liquidity pools, while CEXs use order books. Market depth also impacts liquidity—more buy/sell orders at various prices means better execution. Traders need liquidity for efficiency; investors need it for flexibility. Always check volume before trading! Understanding liquidity helps manage risk and improve strategy. #Liquidity101 #CryptoBasics #TradingTips #MarketLiquidity #DeFiExplained #StockMarketSuccess #Investsmart2025