#Liquidity101

The Market is in a Low-Liquidity Phase — What Should We Do?

Right now, market conditions are tough: liquidity is low, smart money isn’t making major moves, and retail interest is fading. This environment tends to lead to price declines. Here’s how to navigate it:

1. Prioritize Capital Preservation

This is not the time to be aggressive. When the market is uncertain, protecting your capital is the smartest move. Reduce your risk exposure and focus on surviving, not thriving.

2. Avoid Extreme Market Timing

Trying to perfectly time the bottom is risky and often futile. Stay partially exposed—don’t go all-in, but don’t sit entirely in cash either. Unexpected rallies can happen, and you want to be positioned to benefit.

3. Stick to the Majors

Speculating on low-cap altcoins is especially dangerous in illiquid markets. Focus on accumulating strong, more stable assets like Bitcoin. Use this time to buy quality at a discount, rather than chasing hype.

4. Stay in the Game

Bearish conditions often shake people out. Don’t let that be you. Even if activity is slow, keep learning and observing. The market always evolves, and staying engaged prepares you for the next cycle.