📘 #Liquidity101 – Understanding Liquidity in Crypto

💧 Liquidity is the ease with which an asset can be bought or sold without affecting its price.

🔍 2 types of liquidity to know:

– Market Liquidity: High trading volume = easy entries/exits.

– Pair Liquidity: Depth of the order book on a specific token (e.g., $SUI/$USDT).

💣 Beware of low liquidity tokens

– High slippage

– Risk of pump & dump

– Difficult to exit without a loss

🛡️ Tips for traders:

✅ Favor pairs with high volume

✅ Check liquidity pools if you trade on a DEX

✅ Use limit orders to avoid surprises

💡 In crypto, liquidity = your insurance for entering and exiting cleanly.

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