💧 Why Liquidity Matters in Crypto Trading – #Liquidity101
Liquidity refers to how easily an asset can be bought or sold without causing a drastic price change. In crypto, a highly liquid pair like ETH/USDT means faster trades and smaller spreads, while low liquidity might lead to delays and price slippage.
For example, if you're trading a lesser-known altcoin, it might take longer to fill your order at your desired price, or you may have to accept worse prices. Always check the 24-hour volume and order book depth before placing large orders.
