💧 Liquidity 101 – Why It Matters in Crypto
Liquidity refers to how easily an asset can be bought or sold without affecting its price. In crypto, high liquidity means smoother trades, tighter spreads, and more accurate pricing. Popular pairs like BTC/USDT have high liquidity, while small tokens may be harder to trade. Liquidity also impacts slippage—the difference between expected and actual price. Centralized exchanges (CEXs) often offer deeper liquidity than decentralized ones (DEXs). For traders, strong liquidity ensures better entry and exit points.
📌 Tip: Always check liquidity before trading—especially with new or low-volume tokens. It can save you from costly surprises!
