#Liquidity101 💧 What is Liquidity in the Crypto Market?

#Liquidity101

Liquidity is the ability of an asset to be bought or sold quickly without causing significant price fluctuations. In the crypto world, the higher the liquidity of a coin, the easier it is to trade with it — meaning there are many active buyers and sellers.

For example, the BTC/USDT pair has high liquidity because there is a large volume of trades daily. On the other hand, lesser-known coins may have low liquidity, making it more difficult to enter or exit a position at a good price.

A smart trader always analyzes liquidity before opening a trade. This avoids slippage and ensures better control over order execution. 🔍📊