#CEXvsDEX101

Liquidity in the world of cryptocurrencies refers to how easily a specific asset can be bought or sold without significantly affecting its price. The higher the liquidity, the easier it is to execute orders quickly and with a smaller price difference between supply and demand (spread).

When trading the SOL/USDT pair, if liquidity is high, you can sell large amounts of SOL without the price dropping sharply. In the case of low liquidity, you may face delays in execution or be forced to sell at a lower price than you desire.

Liquidity is an important factor in choosing pairs and platforms, especially for day traders or those with large capital. Always monitor liquidity before entering a trade!