#Liquidity101
Letโs talk about liquidity and why it matters in crypto trading โ especially looking at this WCTUSDT trade ๐. Youโll notice itโs currently sitting at a -34% loss. One big reason? Low liquidity.
When liquidity is low, it means there arenโt enough buyers and sellers in the market. So even small trades can cause big price swings โ making it hard to enter or exit a position without losing value. Thatโs what we call slippage.
Before jumping into a trade, always check trading volume and the order book. It helps you avoid getting caught in. trade wisely