#Liquidity101 What is liquidity and why does it matter in trading?

Liquidity is the ease with which an asset can be bought or sold without drastically affecting its price. In other words, it is the ability to transform an asset into money quickly and with little variation in value.

🔹 A market with high liquidity (such as the BTC/USDT pair on Binance) has many buyers and sellers. This means smaller spreads, faster executed orders and lower unexpected volatility.

🔹 A market with low liquidity can present large price fluctuations with larger orders, high slippage and difficulties in closing positions.

💡 For traders and investors, choosing assets with good liquidity is essential to minimize risks and optimize strategies.

Do you want to do scalp? Swing? Hold? It all starts with the liquidity of the asset you are trading.