💧Crypto Liquidity Explained: Why It Can Make or Break Your Trade! #Liquidity101
Hey fam 👋
Let’s break down why liquidity is a game-changer in crypto trading — using this WCTUSDT trade as a real example. Right now, it's sitting at a -34% loss. Ouch, right? One major reason: low liquidity.
When liquidity is low, there aren’t enough active buyers and sellers in the market. That means even small trades can move the price a lot — causing something we call slippage. This makes it tough to get in or out of a position without taking a hit.
💡 Pro tip:
Before entering a trade, always check the trading volume and the order book depth. It could save you from getting stuck in a bad move.
Trade smart. Stay sharp. 💹