#Liquidity101

Well, liquidity. A great and sad force in the crypto market. Without it, everything falls apart. You trade, you buy, but in the order book... emptiness. The price flies away from you, like the last bus on a rainy evening. This is slippage — the price you pay for the illusion of movement.

Before entering a trade, I, of course, look at the volumes. But even volumes can deceive. I see what seems like millions in a day, but in reality — one whale swam by and left. It's better to look at the depth of the order book, the spreads, and also — how often the orders are updated. The less frequent, the harder it will be to exit without losses.

To reduce slippage, I have to split orders into parts. Or place limit orders and wait. And waiting is a whole different song. Sometimes the price leaves, and you remain. Alone, with a limit order and regret.

In general, liquidity is a capricious thing. You can't do without it, but it's also not that simple with it. Get used to it.