#Liquidity101 #Liquidity101

💧What is Liquidity & Why It Matters in Trading💧

Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means there are lots of buyers and sellers, so trades happen quickly at stable prices. Low liquidity means fewer participants leading to slippage, where your order gets filled at a worse price than expected.

📉 Example: In a low-liquidity market, a large buy can drive the price up before your full order is filled.

✅ Tip: Always check liquidity before trading, especially with lesser-known tokens. Use limit orders to reduce the risk of poor execution.

In short, better liquidity = better price execution. Don’t ignore it!

☆Do Your Own Research☆