#Liquidity101
💧 What is liquidity in the crypto market?
Liquidity means how easily an asset (like a cryptocurrency) can be bought or sold without significantly affecting its price.
🔹 High liquidity market = many orders = faster execution + lower spreads.
🔹 Low liquidity market = difficulty executing trades = significant slippage + higher risks.
📉 Example:
Buying 10,000 USDT from BTC in a high liquidity market happens quickly and at a fair price.
In a low liquidity market? You might buy some quantity at a high price and the rest at a completely different price!
💡 How to assess liquidity?
• Monitor daily trading volume.
• Check the Order Book.
• Avoid low-volume coins if you are an active trader.
#Liquidity101
#CryptoEducation #LearnCrypto #Crypto
