Binance Liquidity
✅ What does liquidity mean here?
In Binance, liquidity refers to how easily a cryptocurrency can be bought or sold quickly without significantly impacting the price.
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🔄 A simple example:
You want to buy 1 Bitcoin on Binance.
If liquidity is high, you can buy it immediately at market price.
If liquidity is low, you may have to pay more, or there may not be anyone selling to you right away.
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📖 Indicators to help you understand liquidity on Binance:
1. Trading Volume (24h Volume)
The larger the daily trading volume, the higher the liquidity.
Example: BTC/USDT has billions, while a new coin may only have volumes in the thousands.
2. Spread
The difference between the highest buying price (Bid) and the lowest selling price (Ask).
Small spread = good liquidity.
Large spread = weak liquidity.
3. Order Book Depth
Refers to how many orders are waiting to buy or sell at nearby prices.
A full order book = liquid market.
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📊 Where to see these indicators on Binance?
When opening a trading pair like BTC/USDT:
You will see the candlesticks.
The daily trading volume is below the chart.
The order book is on the right.
The spread is indirectly shown between the best buy and sell offers.
