#Liquidity101 You probably encountered a liquidity problem.

Let's go back to basics: what is liquidity and why does it matter so much? 👇

🔹 Liquidity = Ease of buying or selling an asset without significantly affecting its price.

📈 High liquidity:

✔️ Many active buy/sell orders

✔️ Small spreads (difference between buy and sell price)

✔️ Lower volatility when executing an order

✔️ Ideal for active traders

📉 Low liquidity:

❌ Few buyers/sellers

❌ Large spreads

❌ High slippage (price slip)

❌ Risk of getting "stuck" with an illiquid asset

🔁 Where do we see more liquidity?

🔵 In large CEX like Binance, where there is high volume and active users

🟣 In DEX pools with high TVL (total value locked)

🧩 In pairs with well-known tokens (e.g. BTC/USDT, ETH/BUSD)

💡 Tips to avoid liquidity problems:

✅ Check trading volume before trading

✅ Use limit orders on tokens with low liquidity

✅ Don't enter with all your capital in “microcap” or lesser-known tokens

Liquidity isn't sexy... but without it, there's no real trading.

Understanding it gives you an advantage over 90% of newcomers. 😉

Have you ever found that you couldn't sell a token in time?

Share your experience or share this post with your trading group