🛞Why Liquidity Matters in Crypto Trading (For Beginners!)
Liquidity means how easy it is to buy or sell a cryptocurrency without changing its price too much. The more people trade a coin, the more "liquid" it is.
💡 Why It’s Important:
High liquidity = faster trades and better prices
Low liquidity = price jumps, delays, and slippage (where you get a different price than expected)
🔍 How I Check Liquidity:
1. 24-hour trading volume – More volume = more liquidity
2. Bid-ask spread – A small difference means better liquidity
3. Number of active traders – More buyers and sellers = smoother trades
🚫 How I Avoid Slippage:
I use limit orders (so I set the price I want)
I avoid trading during big news or high volatility
I check the order book to make sure there are enough buyers/sellers
Even as a beginner, understanding liquidity helps you trade smarter and avoid unexpected losses.
