#Liquidity101

Liquidity is the backbone of smooth crypto trading.

Before entering any position, I always check the order book depth and trading volume—especially on shorter timeframes. High liquidity means tighter spreads, faster execution, and less slippage. I avoid pairs with low volume, especially during off-peak hours, as they can lead to unexpected price swings. My strategy includes using limit orders instead of market orders in low-liquidity conditions to reduce slippage. I also compare price differences between exchanges to spot potential arbitrage but remain cautious. Liquidity isn’t just about ease of entry—it’s key to exiting a trade safely too. Understanding it helps me trade smarter and protect profits.

Let’s master the basics, one concept at a time!

#Liquidity101 #TradingFundamentals