#TradingTools101

01

💧 Market Liquidity – Why is it Important?

Before entering any trade, you must ask yourself:

Is this asset easy to buy and sell? 🤔

🔹 Liquidity = the ease of converting an asset into cash quickly and without significantly changing its price.

📈 High liquidity?

✅ Fast execution of trades

✅ Low spread (the difference between buying and selling price)

✅ Example: BTC or ETH on major exchanges

📉 Low liquidity?

⚠️ Difficulty in executing orders

⚠️ You might sell at a loss due to lack of buyers

⚠️ Example: Small or new cryptocurrencies

💡 Tip for beginners:

Choose assets with strong market liquidity, so you can enter and exit easily without unexpected losses.