Liquidity101 💧 – Why It Matters in Crypto Trading
Ever wondered why some trades are instant while others take time or slip in price? The answer is liquidity.
🔹 What is Liquidity?
Liquidity = How easily you can buy or sell an asset without affecting its price.
🔹 High Liquidity
✅ Fast order execution
✅ Minimal price slippage
✅ Tight bid/ask spreads
💡 Example: BTC/USDT on Binance
🔹 Low Liquidity
⚠️ Slower trades
⚠️ Bigger price swings
⚠️ Harder to enter/exit positions
📈 Pro Tip: Always check liquidity before trading altcoins or on DEXs.
Whether you’re using a CEX like Binance or a DEX, understanding liquidity helps you make smarter moves.
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