#NasdaqETFUpdate
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 to cash quickly and without a significant change in its price.
📈 High Liquidity?
✅ Fast order execution
✅ 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 a lack of buyers
⚠️ Example: Small or new cryptocurrencies
💡 Tip for Beginners:
Choose assets with strong market liquidity, so you can enter and exit easily and without unexpected losses.