#Liquidity101
💧 #Liquidity101
Liquidity is a core element of successful crypto trading. It directly impacts trade execution speed and the amount of slippage traders experience.
Before opening a position, I always check the order book depth, trading volume, and bid-ask spread. A narrow spread and high 24h volume are good signs of healthy liquidity.
To reduce slippage, I typically:
Use limit orders instead of market orders.
Break large orders into smaller ones.
Trade during peak market hours when liquidity is highest.
Understanding liquidity helps me minimize costs and execute trades more efficiently. 🚀
How do you approach liquidity in your trades?