#Liquidity101

Liquidity is the lifeblood of smooth trading. It refers to how quickly and easily an asset can be bought or sold without affecting its price.

🔍 Why it matters:

High liquidity = faster execution + tighter spreads

Low liquidity = slippage, bad fills, and sometimes no fills at all

💡 How I evaluate liquidity:

I always check the order book depth

I look at 24h trading volume

I avoid large positions in low-cap altcoins unless I’m okay with extra risk

⚙️ Strategies to reduce slippage:

Use limit orders, especially in volatile markets

Scale in/out of large positions instead of going all in at once

Trade during high-volume hours for better fills