Why Liquidity Matters in Crypto
Liquidity is one of the most important (but often ignored) concepts in crypto.
💧 It refers to how easily you can buy or sell a token without affecting its price.
High liquidity means:
✔️ Tighter spreads
✔️ Faster execution
✔️ Lower slippage
✔️ Better price accuracy
Low liquidity means:
⚠️ Price volatility
⚠️ Difficulty in executing large orders
⚠️ Higher risk
Major coins like BTC and ETH are highly liquid. Some small altcoins, not so much.
Always check liquidity before trading – it can save you from unexpected losses.
