Liquidity is somewhat like water in a river 🌊: the more abundant it is, the easier and faster everything flows.

When liquidity is high, your transactions go through smoothly at the price you want. But when it's low, it's like trying to cross a stream on foot — you risk making waves, and the price may move against you (this is called slippage).

Before entering a trade, take a look at the volume and market depth: the more buyers and sellers there are, the better it is!

To avoid unpleasant surprises, favor times when the market is active and use limit orders.

Liquidity is the key to smooth and hassle-free trading! 🔑

#Liquidity101