#Liquidity101

Here's a 101 on liquidity in Binance:

**Liquidity 101 on Binance**

Liquidity measures how easily you can buy or sell an asset *without drastically changing its price*. Think of it as market "thickness".

* **High Liquidity (e.g., BTC/USDT):** Many buyers and sellers constantly placing orders. Benefits:

* **Tight Spreads:** Small difference between highest bid & lowest ask.

* **Minimal Slippage:** Market orders execute near expected price.

* **Price Stability:** Large trades don't cause huge price swings.

* **Low Liquidity (e.g., new altcoins):** Fewer orders. Results in:

* Wider spreads.

* Significant slippage on market orders.

* Large orders moving the price significantly.

**Why Binance Excels:** It aggregates millions of users, creating deep **order books** (all bids/asks) for major pairs, offering superior liquidity vs smaller exchanges. 💧💰