Recently, many people have been talking about "trading liquidity". What exactly is it? Simply put, it's like the flow of water in a river; the larger the flow, the smoother the trading.

Trading liquidity refers to the ease with which a particular asset can be bought or sold at a reasonable price within a specific time frame. In markets with good liquidity, it is easier for buyers and sellers to reach agreements, and price fluctuations are relatively small. Conversely, in markets with poor liquidity, there may be a phenomenon of "slippage", causing the actual transaction price to differ significantly from the expected price.

For us cryptocurrency users, choosing trading pairs with good liquidity is crucial. Imagine you want to quickly sell a cryptocurrency; if the market has poor liquidity, you might have to wait a long time to complete the transaction or even be forced to accept a lower price.

So, how can we determine whether trading liquidity is good or not? The simplest way is to look at trading volume and the depth of buy and sell orders. The larger the trading volume and the denser the buy and sell orders, the better the market liquidity. On Binance, you can assess this by checking the candlestick chart and the depth chart. Remember, selecting trading pairs with good liquidity allows you to better control trading risks! Do you have any tips for judging liquidity? Feel free to share in the comments!