๐ง โ The Lifeblood of Any Market
Have you ever tried to sell a coin only to find no oneโs buying? Thatโs a liquidity issue.
๐ What is liquidity?
Liquidity measures how easily you can buy or sell an asset without causing big price changes.
๐น High Liquidity = Lots of buyers & sellers โ smoother trading, tight spreads.
๐น Low Liquidity = Fewer participants โ bigger slippage & price jumps.
๐ Example:
BTC on Binance โ High liquidity
A new altcoin on a small DEX โ Low liquidity
๐ฅ Why Liquidity Matters:
โข Better prices (smaller spreads)
โข Faster order execution
โข Less price manipulation
โข Greater confidence for large investors
๐ Tip:
Before placing a big order, check the order book and 24h volume. In low-liquidity markets, even a small order can move the price a lot.
โ ๏ธ Heads up:
Liquidity can dry up fast during news events or market crashes โ always plan your exits in advance.
๐ฌ What about you?
Have you ever been stuck in a liquidity trap or scored a sweet deal? Share your stories with #Liquidity101 so we can all learn!
