#Liquidity1011

Liquidity in cryptocurrency trading measures the ease of buying or selling an asset without significantly affecting its price.

A liquid market, such as BTC/USDT on exchanges like Binance, has high trading volumes, tight spreads, and minimal manipulation, facilitating quick and accurate executions.

In contrast, pairs with low liquidity, such as lightly traded altcoins, exhibit greater volatility and slippage, where the executed price differs from the expected one, negatively impacting profits.

To assess liquidity before opening a position, analyze the daily trading volume, the thickness of the order book (bid-ask spread), and market depth.

Tools like Coin MarketCap or Trading View show this data.

Prefer pairs with high volume and reputable exchanges.

To reduce slippage, use limit orders instead of market orders, breaking large trades into smaller parts to minimize the impact on the price.

Also, trade during high activity hours (Asian or American sessions) and avoid pairs with imminent volatile news.