#Liquidity101
✅ 2. Hashtag: #Liquidity101
💧 Liquidity is a fundamental element in the trading world, and it refers to the ease of converting an asset into cash without affecting its price.
In cryptocurrencies, such as BNB, high liquidity means lower price spreads and faster trade execution, especially on centralized exchanges. On the other hand, low liquidity makes trade execution difficult and causes sharp fluctuations.
Therefore, it is important to choose trading pairs with strong liquidity to reduce risks.
Have you ever faced issues due to low liquidity? Share your experience with me!
#Liquidity101