#CryptoFees101 #CryptoFees101 headlines and order books, I know that liquidity isn’t just a buzzword—it’s the difference between a crisp execution and a costly slip.
🔍 What Is Liquidity?
Liquidity measures how easily you can buy or sell an asset without moving its price too much.
• High liquidity = tight spreads, deep order books → minimal slippage.
• Low liquidity = wide spreads, shallow depth → big price impact on your fills.
🧐 Evaluating Liquidity Before You Trade
1. Order Book Depth: Scan bids and asks around your target price. More depth = better fills.
2. 24‑Hour Volume: Higher volume pairs absorb large orders with ease.
3. Bid‑Ask Spread: Narrow spreads signal active markets; wider spreads warn of thin trading.
4. Time of Day/Session: Major market hours (e.g., London/New York overlap) often see peak crypto activity.