#Liquidity101
💧 Why Liquidity Matters in Crypto Trading 💰
Liquidity is one of the most important yet often overlooked concepts in crypto trading. It refers to how easily an asset can be bought or sold without affecting its price. High liquidity means there are many buyers and sellers, which leads to tighter spreads, quicker trades, and more accurate price discovery. Low liquidity, on the other hand, can cause slippage and unpredictable price swings, making it risky for traders. Whether you're a day trader or a long-term investor, always consider the liquidity of a coin or token before entering a position—it can make or break your trade.
