#Liquidity101 Mastering Liquidity in Crypto Trading ๐ง
Liquidity is a game-changer in crypto trading, impacting how fast and fairly your trades are executed. Evaluating liquidity before jumping in can save you from costly slippage and missed profits!
1๏ธโฃ Volume Check ๐ โ High 24h trading volume = smoother entries and exits.
2๏ธโฃ Order Book Depth ๐ โ A deep book means less price impact when trading large amounts.
3๏ธโฃ Spread Awareness ๐ โ Narrow bid-ask spreads are signs of a healthy, liquid market.
4๏ธโฃ Timing Trades โฐ โ Trade during peak hours when liquidity is highest.
5๏ธโฃ Use Limit Orders ๐ฏ โ Avoid slippage by setting your own price instead of accepting market orders.