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How to read the health of a market without being an expert
In 2025, Binance remains the exchange with the greatest market depth. But that doesn't mean all pairs have good liquidity. And if you trade without looking, you might end up paying dearly.
🔍 What is liquidity on Binance?
It is the ease with which you can enter or exit a position without significantly altering the price.
💡 Where do you see it?
📊 Order Book:
If you see gaps or few orders near the current price, that area has low liquidity. In solid assets like BTC/USDT or ETH/USDT, you will see thousands of orders.
💰 Spread (difference between buy and sell):
On Binance, a pair with a narrow spread (0.01–0.05%) is liquid. If the spread is 1% or more, be careful: the pair might be dry.
🔄 24h Volume:
Don't just look at how much is traded. Compare the volume with the Market Cap or with previous days. Inflated volume can be temporary or manipulated.
🔐 Binance Liquidity Pools (Earn):
If a token is listed in an official Binance liquidity pool, it usually has backing. Also check its use in Launchpad or Launchpool, where Binance usually injects initial liquidity.
🔥 Current context (June 2025):
Memecoins and low caps have entered Binance en masse. Not all have real liquidity, even if they are listed.
Several tokens have been delisted due to lack of sustainable volume. Liquidity is a silent filter.
Binance continues to prioritize pairs with high turnover, such as BTC/USDT, ETH/FDUSD, SOL/USDT and now AI-tokens like FET or RNDR.
📌 Maybe advice to survive on Binance in 2025:
“Before clicking 'Buy', check the Order Book. If it looks like a desert, maybe that token is not for today.”