#Liquidity101 think of it as the ease with which you can buy or sell crypto without significantly affecting its price ๐. High liquidity means there are plenty of buyers and sellers for a particular asset, allowing your trades to execute quickly and at a predictable price ๐. On a platform like Binance, popular pairs like BTC/USDT typically have very high liquidity, meaning you can make large trades without causing big price swings. Conversely, low liquidity means fewer participants, so a large order could significantly move the price, leading to what's known as "slippage" ๐. Binance achieves high liquidity through its massive user base and advanced trading infrastructure, making it easier for you to enter and exit positions smoothly. This ultimately leads to tighter bid-ask spreads and a more efficient trading experience for everyone! โ
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