📊What is Liquidity in Crypto?
Liquidity refers to how easily you can buy or sell a cryptocurrency without impacting its market price. A highly liquid market - like BTC/USDT on Binance - has lots of buyers and sellers, allowing quick trades with minimal slippage. This is crucial during high volatility, where you want stable execution.
💡Pro tip: Always check the order book depth before entering a large position. Low liquidity can result in unexpected losses or slow order fills.
Liquidity = smoother trades, tighter spreads, and more efficient markets. It's a must-know for all traders!
