#binancesquareofficial #Liquidity101

🔹 WHY LIQUIDITY MATTERS IN CRYPTO TRADING

Liquidity is one of the most important yet often overlooked concepts in crypto trading. It refers to how easily an asset can be bought or sold without affecting its price significantly.

🔸 HIGH LIQUIDITY

Means there are many buyers and sellers

Trades execute quickly at stable prices

Common in top coins like btc, eth, bnb

✅ Ideal for active trading and large positions

🔸 LOW LIQUIDITY

Fewer participants in the market

Higher chances of slippage (price changes during execution)

Can cause delays or unfavorable pricing

⚠️ Risky for quick trades or large orders

🔸 WHY IT MATTERS

Liquidity directly affects your trade execution speed, accuracy of entry/exit, and overall risk.

For scalping, day trading, or even swing trading—choosing high-liquidity pairs is crucial for smooth operations.

💡 Tip: Use the order book and 24h volume as indicators of liquidity.