๐Ÿ’ง #Liquidity101 โ€“ The Hidden Force Behind Every Trade ๐Ÿ’น

Liquidity plays a crucial role in crypto tradingโ€”it determines how quickly and easily you can buy or sell an asset without affecting its price. High liquidity means tighter spreads, better price execution, and minimal slippage. Low liquidity, on the other hand, can lead to delayed orders and unexpected price movements.

Before entering a position, evaluate liquidity by checking:

๐Ÿ”ธ 24H trading volume

๐Ÿ”ธ Bid-ask spread

๐Ÿ”ธ Depth of the order book

To reduce slippage:

โœ… Use limit orders

โœ… Trade during high-volume hours

โœ… Stick to popular pairs like BTC/USDT

Understanding liquidity helps you trade smarter, safer, and more profitably.๐Ÿ’ฑ๐Ÿ“ˆโœ