💧 #Liquidity101 – Why It Matters in Crypto Trading 📊

Liquidity = how easily you can buy or sell an asset without major price changes.

🔹 High liquidity (like ETH/USDT): Tighter spreads, faster trades, less slippage.

🔹 Low liquidity: Bigger spreads, slower execution, potential price jumps.

In CEXs, market makers provide liquidity. In DEXs, it comes from liquidity pools.

💡 Pro tip: Always check liquidity before entering or exiting a trade—especially with altcoins!

How do you manage liquidity risks in your trades?

#CryptoBasics #ETH #CEXvsDEX101 #OrderTypes101 #Web3