#Liquidity101 Crypto Today: Riding the Waves or Stuck in the Mud? đ§$BTC
The crypto market is buzzing today â some coins are moving fast, others feel like theyâre frozen in time. Why? One word: LIQUIDITY.
đź #Liquidity101: So You Donât Buy High and Get Stuck Low
Liquidity = how easily you can buy or sell an asset without dramatically affecting the price.
đ Why does liquidity matter?
đ˘ High Liquidity = Fast & Fair
Lots of buyers and sellers
Tight spreads (small gap between buy/sell price)
Perfect for fast-paced trading
đ´ Low Liquidity = Danger Zone
Hard to sell when you need to
Your own trade could crash the price
Only worth it if you're holding long-term (and trust the project)
đĄ Pro Tip:
Before aping into that âhot new coin,â check the trading volume first. Donât end up stuck in a ghost town. đ
Ever got stuck holding an illiquid coin? Share your pain below đ
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