Insights on Trading Liquidity
Liquidity refers to the ability of an asset to be quickly traded at a reasonable price. In cryptocurrency trading, high liquidity means being able to execute trades quickly and at the expected price. Before opening a position, I will observe the trading pair's trading volume and the depth of buy and sell orders. A large trading volume and many pending buy and sell orders typically indicate good liquidity.
To reduce slippage, I will use a small amount of multiple trading strategies to avoid large orders impacting the market; I will also choose to place orders during active trading periods when market depth is good and prices are relatively stable. #TradingLiquidity#交易流动性