From what I understood Liquidity is one of the key terms in understanding the market .
Liquidity 🌊- how fast you can buy/sell asset without affecting it's price too much.
As one user described it- imagine you are going to a market buying tomatoes, is you buy from big reseller you get lower price , faster service and some bigger security ,he won't risk big sale for a small one, brand name...some sence of security, but NOT A GUARANTEE! In fact I personaly don't trust brands too much I like what I like not the name selling it .
On the other side , you go and buy from the first person selling in the street , you buy less ,pay higher price (prices are not same of you buy 10kg or 1kg.produce ) , with the danger that your tomatoes may go sour ,you have no guarantee whatsoever what you are buying !
Applying this knowledge on crypto it's more or less same situation . Coin pairs that have a high liquidity as
will guarantee you smoother faster transactions and you know what you are buying.
On the other hand there are coins that are just begining or the project is not good or are just pure hype ,no substance, with orders filling slow so the risk of slippage is lurking, remember the song 🧼🥿,Murder on the dance floor😁🎶
🌊To avoid any additional 🤦 try :
🔶 Trade while high volume hours
🔶 Use high liquidity pairs, almost always btc, eth..the big 5 paired with other highly liquid coin
🔶 ALWAYS USE STOP LOSS, can't stress this enough , Limit orders instead of market orders also helps.
With all this being said NOONE and NO RULE can guarantee you ANY TRADES!!! I remember clear as day last summer I wrote similar post how everyone was excited about the high volatility of BTC ( Yes, I know it's not liquidity,just an example), and took it as sign that for sure it's gonna rise THEN , but BTC went and fell even deeper at that moment. So all this are BASIC MECHANISAMS how things work ,not financial advices or trading tips. The Market has a life on its own and it depends on more factors then one, so a scam coin can end up like alpha project, or perfectly good coin can fall into oblivion. NO STRICT RULES ,only GUIDENCE exists in crypto as in all else in life. 🍀🍀🍀