#Liquidity101
Ever heard the term “liquidity” in trading and wondered what it means? Let’s break it down:
🔹 Liquidity = How easily you can buy or sell an asset without affecting its price.
✅ High Liquidity
– Lots of buyers and sellers
– Fast trades, tight spreads
– Example: BTC/USDT on Binance
⚠️ Low Liquidity
– Fewer buyers/sellers
– Slippage, bigger spreads
– Harder to enter/exit trades
💡 Tip: Trade in high-liquidity markets for better prices and faster execution!
Understanding liquidity helps you avoid surprises.
#CryptoBasics #TradingTips #DeFi #CryptoEducation #InvestSmart
