Have you heard about "liquidity" in the trading world? Let's explain it simply 👇
🔹 Liquidity = The ease of buying or selling an asset without a significant change in price.
✅ High liquidity = Fast execution + Small price difference (spread)
❌ Low liquidity = Difficulty in selling + Large price fluctuations
📊 Examples:
BTC/USDT on Binance = High liquidity
A low-profile coin on DEX = Low liquidity
💡 Liquidity is important because it means:
🔸 Faster trading
🔸 Lower risk
🔸 Lower fees (usually)
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🧠 As a trader, monitor liquidity before any trade!
Did you know this? 💬👇
