๐ง #Liquidity101 โ The Hidden Force Behind Every Trade ๐น
Liquidity plays a crucial role in crypto tradingโit 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:
๐ธ 24H trading volume
๐ธ Bid-ask spread
๐ธ Depth of the order book
To reduce slippage:
โ Use limit orders
โ Trade during high-volume hours
โ Stick to popular pairs like BTC/USDT
Understanding liquidity helps you trade smarter, safer, and more profitably.๐ฑ๐โ