Let’s talk about something that every trader should understand: #Liquidity101
Liquidity basically means how easily you can buy or sell an asset without affecting its price too much. High liquidity = faster trades, tighter spreads, and less slippage. Think of top pairs like BTC/USDT — tons of volume, easy in and out. 🔄
But when you trade low-cap or niche tokens with low liquidity, things get trickier. Your order might move the price, or you might get filled at a worse rate. Ouch. 😬
Whether you're on a CEX or DEX, always check the order book and volume. Liquidity can make or break your trade.
How do you manage liquidity risk in your trades?