#Liquidity101 Liquidity is the most important factor in crypto trading. It indicates the ease of buying or selling an asset without significantly affecting the market price. A trading pair with high liquidity will have large volumes, small bid-ask spreads, and orders can be matched quickly. Conversely, low liquidity makes you more susceptible to slippage and makes it difficult to exit positions. This is why many traders prioritize trading top coins or pairs with high volumes. Especially when the market is highly volatile, liquidity becomes even more important to protect your account.
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