📊 *#Liquidity101 – Why It Matters in Crypto Trading*

Liquidity is the backbone of smooth trade execution. High liquidity ensures better price execution with minimal slippage. On the flip side, low liquidity can cause delays, poor pricing, or even failed orders – especially in volatile markets.

✅ *What is Liquidity?*

Liquidity refers to how easily an asset can be bought or sold without causing significant price changes.

🧠 *How I Evaluate Liquidity:*

Before entering a trade, I check order book depth, trading volume, and bid-ask spread. These indicators give a clear picture of market activity.

🛡️ *My Strategy to Reduce Slippage:*

I use limit orders during high volume periods and avoid trading during major announcements or low-volume times.

Let’s trade smart. What’s your liquidity strategy?

#Liquidity101