#Liquidity101 liquidity in the cryptocurrency market refers to how easily a digital asset can be bought or sold without causing a significant fluctuation in its price. High liquidity implies that there is a large volume of transactions and strong market participation, allowing transactions to be executed quickly at prices close to the market value. This is very important on trading platforms where traders seek to minimize slippage when making large orders. Liquidity can be affected by various factors, such as the number of participants in the market, regulation, asset adoption, and the stability of the blockchain ecosystem. Centralized exchanges usually offer greater liquidity compared to decentralized ones, although the latter are gaining ground thanks to innovations such as automated market makers.