#Liquidity101
💧 Liquidity 101: Know Before You Trade! 🔄
Ever wondered why some crypto trades happen instantly while others take time or cost more? The secret lies in one word: Liquidity.
📊 Liquidity means how easily an asset can be bought or sold without affecting its price. A coin like $BTC or $ETH has high liquidity — there are always buyers and sellers. But low-cap tokens often have low liquidity, meaning your large trade could cause slippage or delay. 😬
Why it matters: ✅ Fast execution
✅ Less price volatility
✅ Lower trading fees
✅ Safer entry/exit from the market
Traders prefer high-liquidity pairs because it ensures smoother experience, especially during market swings.
📌 Tip: Always check liquidity before investing — it’s as important as price trends or news!
💡 In crypto, liquidity = confidence. The more liquid a market, the healthier it is.
