#Liquidity101 ๐ง Why Liquidity Matters โ #Liquidity101 ๐
Liquidity is the lifeblood of any market, especially in crypto. Itโs all about how easily you can buy or sell an asset without causing big price swings. High liquidity means tighter spreads, faster trades, and less slippage โ perfect for both beginners and pros. Low liquidity can trap you with bad fills and bigger losses.
When picking assets or exchanges, always check volume and order book depth. DEXs sometimes have lower liquidity, so watch out for higher fees and price impact.
Strong liquidity = smoother trading and better opportunities. Donโt underestimate this key factor in your strategy!
How do you check liquidity before trading? Drop your tips below!
#Liquidity101 #CryptoTrading #MarketBasics #TradeSmart #CryptoTips