Liquidity 101: Why It Matters in Crypto 💰
Liquidity is the lifeblood of any market — especially in crypto. It refers to how easily an asset can be bought or sold without causing drastic price changes. On Binance, high-liquidity trading pairs (like BTC/USDT or ETH/BUSD) ensure fast transactions and tighter spreads.
Why is this important? Because liquidity means stability. It allows traders to enter or exit positions quickly, reduces volatility, and improves price discovery. Low liquidity, on the other hand, can cause slippage — where you get less value than expected.
Whether you’re day trading or holding, always check the liquidity before making a move.
