#Liquidity101

💧 #Liquidity101 – Why It Matters More Than You Think

In crypto trading, liquidity is everything. But what is it, really?

📖 Liquidity = How easily an asset can be bought or sold without affecting its price.

Think of it as the speed and smoothness of a trade.

🔹 High Liquidity:

• Tight bid-ask spreads

• Fast order execution

• Less slippage

🟢 Found in major pairs like BTC/USDT or ETH/BTC.

🔸 Low Liquidity:

• Wide spreads

• Price jumps with small trades

• More volatility

🔴 Common in obscure altcoins or low-volume tokens.

📊 Why Traders Care:

• Scalpers need instant execution

• Whales want to avoid price impact

• Everyone wants fair, stable pricing

🔐 Pro Tip: Always check a pair’s 24h volume and order book depth before entering a trade.

💬 Ever got hit by slippage on a low-liquidity token? Share your experience below 👇