Why Liquidity Matters in Crypto Trading 💧📈
Liquidity is one of the most important concepts every crypto trader should understand. Simply put, liquidity refers to how easily an asset can be bought or sold without causing a big change in its price. High liquidity means you can trade quickly at stable prices, while low liquidity often leads to price slippage and higher spreads.
In crypto markets, pairs like BTC/USDT usually have high liquidity, making them ideal for large trades. Low-liquidity tokens might be harder to sell quickly, increasing your risk.
Liquidity also affects market stability and order execution speed. To maximize your trading success, focus on pairs and exchanges with strong liquidity and always check the order book depth before trading.
