💧 What is liquidity and why does it matter in trading?
Liquidity refers to how easy it is to buy or sell an asset without significantly affecting its price. In markets with high liquidity, such as BTC or ETH, you can execute large orders quickly and with little slippage.
In contrast, an asset with low liquidity may exhibit large price variations when trading, and it can be difficult to find counterparts for your orders. This implies higher risk and less efficiency.
📊 For active traders, liquidity is as important as technical analysis. Don't ignore it.
Do you trade with liquidity or do you risk it with exotic tokens?
