In the cryptocurrency market, liquidity is a core indicator that must be assessed before establishing positions, directly impacting trading costs and execution efficiency. Key methods for evaluating liquidity include:

Trading Volume: The larger the 24-hour trading volume, the higher the liquidity (e.g., Bitcoin's daily trading volume exceeds $25 billion), which can reduce slippage risk.

Bid-Ask Spread: The smaller the spread (e.g., mainstream coins typically less than 0.1%), the better the market depth, making it difficult for large orders to impact prices.

Market Depth: Observe the volume of buy and sell orders in the order book; sufficient depth indicates stable liquidity.

Turnover Rate and On-Chain Data: A high turnover rate reflects activity, and frequent large on-chain transfers can warn of liquidity changes.

Current market liquidity is tightening, and one should be cautious of sudden volatility risks. It is recommended to use multiple indicators for comprehensive judgment and prioritize mainstream exchanges and high market cap coins to reduce risk.