#Liquidity101 #Liquidity101: Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means quick trades with minimal price changes—common in popular tokens like BTC or ETH. Low liquidity can cause slippage and delays. Centralized exchanges usually offer more liquidity than decentralized ones. Liquidity is crucial for stable prices, efficient trading, and reduced risk. Traders and investors should always check liquidity before entering or exiting a position.