#Liquidity101 # The Invisible Flow: Your Shield Against Crypto Slippage 🌊 #Liquidity101
Do you know why your orders are not executed at the desired price? The key is **liquidity**. It is the ease of buying/selling an asset (like **$BTC** or **$ETH**) without affecting its price. Low liquidity means higher **slippage**.
### 📊 Evaluate Before Trading:
* **Volume:** High volume for **$SOL** indicates good liquidity.
* **Order Book:** A dense book (many orders close to the price) is better.
* **Bid-Ask Spread:** Look for a narrow spread (little difference between buy/sell).
### 💡 Reduce Slippage:
1. **Use Limit Orders:** You secure your price, even if the execution is not instant.
2. **Split Large Orders:** Avoid a sharp impact on the market.
3. **Trade During Peak Hours:** Higher activity reduces the risk of slippage.
Master liquidity: it will protect your profits and give you an edge!
