#Liquidity101

Why It Matters - Liquidity means how easily a crypto asset can be bought or sold without causing major price swings. High liquidity = smoother trades, tighter spreads, and better prices. Bitcoin and Ethereum? Super liquid. Meme coins? Not so much.

On a CEX, liquidity is driven by order books and volume. On a DEX, it's about liquidity pools—users lock tokens to enable trading. Low liquidity means slippage—where your order fills at a worse price than expected.

Why care? Because in crypto, bad liquidity can wreck your trade. You might buy high, sell low, or get stuck holding.

Always check volume and depth before trading. In this game, liquidity isn't optional—it's survival.