💧 What is liquidity, and why should traders care?
In simple terms, **liquidity** is how easily you can buy or sell an asset without affecting its price. High liquidity means tighter spreads, faster trades, and more price stability—think major pairs like BTC/USDT. Low liquidity? Expect slippage, delays, and potential volatility—common with smaller altcoins or obscure tokens.
Liquidity is key for **efficient trading**, especially during fast-moving markets. It affects execution quality, risk management, and even your trading strategy.
Pro tip: Always check volume and order book depth before entering a trade.
💡 In crypto, liquidity isn’t just important—it’s essential.
