#Liquidity101 #Liquidity101 Hey fam 👋
Let’s break down something crucial in crypto trading — liquidity — and why it can make or break your trades. Take this WCTUSDT trade for example 📉. Right now, it’s showing a -34% loss. So, what’s one of the biggest culprits? Low liquidity.
When a market has low liquidity, it simply means there aren’t enough active buyers and sellers. In such cases, even small trades can cause massive price fluctuations — making it super tough to enter or exit a position without taking a hit. That sudden drop in value when you place your order? That’s called slippage.
Low liquidity = High slippage = Painful trades.
Before jumping into any trade, always check two key things:
✅ Trading Volume – to see how active the market is
✅ Order Book – to know how deep the buy/sell walls go
These insights can protect you from getting stuck in a trade that’s hard to exit — or worse, one that drains your capital fast.
Always trade with your eyes open.
Liquidity isn’t just a number — it’s the lifeline of smart trading.
Trade wisely, fam. 🚀