#Liquidity101
Liquidity in crypto: a key factor not to be overlooked
In crypto, liquidity refers to the ease with which a token can be exchanged without significantly affecting its price.
๐น High liquidity: BTC, ETH โ Many buyers/sellers, tight spreads
๐น Low liquidity: Less known altcoins โ High slippage, difficult to trade in large amounts
Risks of low liquidity:
โข Partial or impossible execution
โข Severe slippage
โข Easier price manipulation
๐ก Tip: always check the volumes, the depth of the order book, and liquidity on DEX/aggregators before buying.
Because in crypto, it's not just what you buy, but how you can exit that matters.
#TradingTypes101 #CEXvsDEX101
