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**Liquidity: The Often-Ignored Trading Essential**
Beginner traders often overlook liquidity, but it’s crucial. Poor liquidity can lead to high slippage—and costly mistakes.
### How I Check Liquidity:
* Daily volume
* Order book depth
* Slippage in order simulation
* Liquidity of the trading pair
### My Anti-Slippage Strategy:
* Use **limit orders**, not market orders
* Avoid large buys on **low-liquidity tokens/DEXs**
* Break orders into smaller parts
* Avoid entering during **high-volatility events**
### Real Experience:
I once tried to buy \$500 of a new token on a DEX. Due to low liquidity, I only got \$420 worth—**16% slippage**.
Since then, I always check liquidity before trading.
**Lesson:** Liquidity impacts your execution.
Higher liquidity = lower slippage = better results.
🔑 Don’t just focus on price—**mind your entries and exits.**
\#Liquidity101 #CryptoTips #TradeSmart
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