#Liquidity101
💧 **Liquidity 101 — Why It Matters in Every Trade**
Heard the term **liquidity** but not sure what the hype is? Let’s break it down 👇
🔹 **Liquidity** = How easily you can buy or sell an asset *without affecting its price too much*. The more buyers and sellers in the market, the more **liquid** it is.
💡 **High liquidity** means:
* Fast order execution ✅
* Smaller spreads (better prices) 💰
* Less slippage 📉
💡 **Low liquidity** means:
* Harder to enter/exit positions
* Wild price swings
* Bigger spreads — more cost to YOU
📊 Major pairs like **BTC/USDT or ETH/USDT**? High liquidity.
Tiny altcoins or exotic pairs? Often low liquidity — trade carefully.
🔁 Liquidity is your **trading oxygen** — the smoother it flows, the better your trades breathe. Always check volume and depth before jumping in.
📍Pro Tip: In volatile markets, high liquidity = stability.
It’s not just *what* you trade, but *how liquid* it is.
