#Liquidity101 ๐ง โ What Is Liquidity in Crypto? ๐ค
Liquidity means how easily you can buy or sell a crypto asset without affecting its price.
๐ High Liquidity = Fast trades, tight spreads, low slippage.
๐ Low Liquidity = Fewer buyers/sellers, wider spreads, higher volatility.
For example:
BTC/USDT on Binance = High liquidity โ
A low-cap altcoin on a small exchange = Low liquidity โ
Why it matters:
Traders love liquidity because it means they can enter and exit positions quicklyโespecially in volatile markets. ๐
๐ก Tip: Always check volume and order book depth before jumping into a trade!
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