#Liquidity101

💧 #Liquidity101 – Why It Matters in Crypto Trading

Ever wondered why some tokens are easy to trade while others take forever? It all comes down to liquidity. Let’s break it down:

🔹 What is Liquidity?

Liquidity = How easily an asset can be bought or sold without affecting its price.

🔹 High Liquidity

✔️ Tighter spreads

✔️ Faster trades

✔️ Less price slippage

(Think: BTC, ETH on major exchanges)

🔹 Low Liquidity

⛔ Wider spreads

⛔ Harder to enter/exit positions

⛔ Higher risk during volatile moves

(Think: Small-cap tokens on low-volume DEXs)

💡 Why It Matters

More liquidity = better trading experience & lower risk.

Pro tip: Always check volume and spread before placing large trades.

Where do you check liquidity before trading? Share your tips 👇

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