💧 Liquidity 101 – Why It Matters in Crypto Trading

Ever tried to buy or sell a coin and saw crazy price jumps? That’s a liquidity issue. Here’s what it means:

🔍 What is Liquidity?

Liquidity = How easily you can buy or sell an asset without changing its price too much.

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💡 High Liquidity

✅ Lots of buyers & sellers

✅ Fast trades

✅ Small price difference between buy & sell (tight spread)

✅ Example: BTC, ETH on Binance

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⚠️ Low Liquidity

❌ Harder to trade

❌ Bigger price jumps

❌ You may pay more or sell for less than expected

❌ Common with small or new coins

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📌 Why It Matters:

High liquidity = smooth trading

Low liquidity = higher risk

Always check volume and spread before trading

honest remark: this is AI generated, but I've checked the reliability of all the stated informations,so no need to worry.

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