#Liquidity101 If you’ve ever tried buying or selling crypto, you’ve already felt the effects of liquidity — even if you didn’t know it. Let’s break it down 👇
🔹 What is Liquidity?
Liquidity refers to how easily you can buy or sell an asset without affecting its price too much.
Higher liquidity = faster, smoother trades
Lower liquidity = slippage, delays, and price spikes
🔸 Why Liquidity Matters on Binance:
Binance is the world’s largest crypto exchange — which means it has deep liquidity across most trading pairs.
✅ Fast trade execution
✅ Low price slippage
✅ Tight bid-ask spreads
✅ Better experience for both retail & pro traders
🔹 Example:
Buying 1 BTC on a high-liquidity platform like Binance might only shift the price by a few cents.
But on a low-liquidity exchange? That same trade could move the price significantly — costing you more.