#Liquidity101

#Liquidity101

Liquidity is the lifeblood of any financial market, especially in the cryptocurrency market. When liquidity is high, you can buy and sell quickly without significant price changes, which gives you security and flexibility in trading. On the other hand, low liquidity is a risk, because you might buy at one price and sell at a loss due to the large difference between supply and demand. Personally, before I enter any coin, the first thing I look at is the daily trading volume and the depth of the order book. Liquidity means security for both traders and investors, and it should always be a priority in your strategy.