#Liquidity101 What is liquidity and why does it matter in crypto trading?
Liquidity refers to how easily an asset can be bought or sold without causing a significant price change. On Binance, high liquidity means you can enter or exit positions quickly, with minimal price slippage. This ensures smoother trading and more accurate pricing.
Imagine trying to sell an asset, but no one’s buying — that’s low liquidity. On the other hand, high liquidity markets have lots of buyers and sellers, so trades happen fast and efficiently.
Pro tip: Stick to trading pairs with high liquidity for better execution and reduced risk. 📊
