💧 Why is liquidity so important in cryptocurrency trading? Here we explain it!
Liquidity refers to how easy it is to buy or sell an asset without significantly affecting its price. A market with high liquidity has many active buyers and sellers, allowing trades to be executed quickly, efficiently, and with reduced spreads. ⚡
On Binance, pairs with higher volume usually offer greater liquidity, benefiting both new and professional traders. That's why, before entering a trade, always check the volume and market depth.
More liquidity = lower risk of slippage. 📉
Learning this is key to your strategy.
#Liquidity101 CryptoTrading BinanceAcademy $SOL