#Liquidity101 ๐Ÿ’ง โ€“ What Is Liquidity in Crypto? ๐Ÿค”

Liquidity means how easily you can buy or sell a crypto asset without affecting its price.

๐Ÿ“Š High Liquidity = Fast trades, tight spreads, low slippage.

๐Ÿ” Low Liquidity = Fewer buyers/sellers, wider spreads, higher volatility.

For example:

BTC/USDT on Binance = High liquidity โœ…

A low-cap altcoin on a small exchange = Low liquidity โŒ

Why it matters:

Traders love liquidity because it means they can enter and exit positions quicklyโ€”especially in volatile markets. ๐Ÿš€

๐Ÿ’ก Tip: Always check volume and order book depth before jumping into a trade!

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#CryptoBasics #DeFiEducation #LiquidityMatters #CryptoTradingTips