💧 Liquidity 101: The Lifeblood🩸 of Every Market📊
Ever tried trading a coin and got terrible execution or couldn’t sell fast enough? That’s liquidity in action—or the lack of it. 👇
🔹 What is Liquidity?
Liquidity = How easily you can buy/sell an asset without affecting its price too much. High liquidity = fast trades with minimal slippage. Low liquidity = painful delays and bad prices.
🔹 Why It Matters:
✅ Tighter spreads
✅ Faster execution
✅ Better price stability
✅ Lower slippage (especially important for mobile traders)
🔹 High vs. Low Liquidity Coins:
Small-cap gems = often illiquid
🔹 How to Spot Liquidity?
📊 Check the order book depth, volume, and bid-ask spread.
The thicker the book and tighter the spread, the smoother your trading ride. 🚗
💡 Pro Tip:
Avoid trading low-liquidity tokens with market orders—your price could move a lot in seconds.
📲 As a mobile trader, liquidity is your safety net. Always double-check it before jumping into a trade.
