#️⃣ #Liquidity101 on Binance
Before You Buy a Token, Check the Liquidity – Here’s How 🛑
Seeing a token pump on Binance? Tempting, right?
But before you smash that Buy button — pause and check liquidity. Here's why it matters and how to do it:
✅ How to Check Liquidity on Binance
Trading Volume
→ Check the 24h volume on the token page.
🔸 Low volume = low liquidity = higher risk.
Order Book Depth
→ Look at Buy/Sell orders.
🔸 Healthy depth = tighter spreads and safer fills.
Slippage Warnings
→ Binance may show a warning if your trade affects the price too much.
🔸 Heed it — it’s a red flag for low liquidity.
Use Advanced/Chart View
→ See price history and impact of large orders.
🔸 Spot irregular candles or gaps — signs of thin liquidity.
🧠 Why It Matters
❌ In low liquidity:
Your order may not fill
You may experience price spike
You might get stuck with no exit
✅ With strong liquidity
Trades execute smoothly
Less slippage and safer positions
📌 Pro Tip:
Liquidity is the hidden foundation of safe trading.
Checking it only takes seconds — but can save your capital.