#Liquidity101 aims to teach people the importance of liquidity for effective and profitable trading, as well as how to navigate markets with varying levels of liquidity.
‼️ If you need to quickly sell an illiquid asset, you may be forced to sell it at a significantly reduced price.
Tips for traders‼️
✅️ Always check the trading volume and depth of the order book before making trades.
✅️ Avoid placing large orders on illiquid assets.
✅️ Use limit orders instead of market orders in illiquid markets to control the execution price.
✅️ On decentralized exchanges (DEX), pay attention to the size of the liquidity pool (TVL - Total Value Locked) before trading.$LUNC