#Liquidity101 #Liquidity101 📚🔥 #Liquidity101 — The Basics You NEED to Know! 🔥📚
💧 What is Liquidity?
👉 The ability to quickly Buy or Sell an asset with minimal price impact (slippage) at any given time.
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🚀 High Liquidity means:
🔸 Fast order matching
🔸 Tight bid/ask spreads
🔸 Stable prices
🔸 Smooth trading experience
Example:
ETH/USDT pair on Binance — massive trading volume and deep order books. You can move large amounts without moving the price much.
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⚠️ Low Liquidity means:
🔸 Fewer buy/sell orders
🔸 Higher slippage
🔸 Price spikes or dumps easily
Example:
A tiny degen token with a $100k market cap. Even a $500 buy can pump the price 30% instantly.
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🎯 Why Liquidity Matters:
✅ Faster, safer trades
✅ More stable prices
✅ Easier to enter & exit positions
✅ Whales can’t easily wreck the market
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📌 Pro Tip: Always check liquidity before entering any trade — especially on low cap coins or new launches!
