#Liquidity101 — why liquidity matters?
Liquidity is not just a technical term, it is the foundation for effective trading. High liquidity = smooth order execution. Low liquidity = slippage, nerves, and unexpected results.
💡 My observations:
• Liquidity is the ability to buy or sell an asset without significantly affecting its price.
• Before entering into a deal, I check the depth of the market and trading volume — especially on low-liquidity altcoins.
• To avoid slippage, I use limit orders or choose trading pairs with high activity.
📉 Slippage is like an unpleasant surprise: you expect one thing, you get something completely different. Especially in times of high volatility.