#Liquidity101 Liquidity in Crypto Trading #Liquidity101

Liquidity is the ability to quickly buy or sell an asset at market price without significant changes in value. In crypto, it is key to successful trading.

High Liquidity On exchanges like Binance, pairs like BTC/USDT have high trading volumes (e.g., $10 billion per day). This ensures tight spreads (the difference between buy and sell prices) and minimal slippage. Suitable for large trades and beginners.

Low Liquidity On DEX or for new tokens (e.g., $TRUMP on Raydium), volumes are lower, spreads are wider, and prices can fluctuate significantly during trades. This is a risk for large traders but an opportunity for early investors.

How to check? Look at trading volume, order book depth, and spreads. High liquidity = stability, low = volatility.

Conclusion Choose high liquidity pairs for stability or low liquidity for speculation. #Liquidity101

Disclaimer: This is not financial advice. Study the risks.