#Liquidity101 Liquidity refers to how easily an asset can be bought or sold without significantly impacting its price. In crypto, centralized exchanges (CEXs) like Binance offer high liquidity due to large user bases and order books, enabling fast trades with minimal price slippage. Decentralized exchanges (DEXs) like Uniswap often have lower liquidity, as they rely on automated market makers (AMMs) and liquidity pools, leading to higher slippage for large orders. Liquidity impacts trading efficiency, costs, and market stability. High liquidity attracts traders, while low liquidity can deter participation. Providers on DEXs earn fees by contributing to pools, balancing risk and reward.