#Liquidity101

💧 #Liquidity101 | Liquidity in the trading world is not just a term, but a fundamental element that determines how easily an asset can be bought or sold without significantly affecting its price. The higher the liquidity, the lower the spreads, the faster the execution, and the lower the risks.

🔍 On Binance, high liquidity in most trading pairs provides golden opportunities for scalping and instant trading. But beware! Low liquidity means higher volatility and greater chances of slippage, especially in new or low-volume cryptocurrencies.

✅ Important Tip: Before opening any trade, monitor the market depth (Order Book) and daily trading volume. Avoid entering trades with weak liquidity unless you are managing risk wisely.

📊 Use tools like Binance Depth Chart and Volume Indicators to accurately assess liquidity, and make it part of your strategy!