🌊 Liquidity 101: The Hidden Force Behind Every Trade 💧

What’s Happening?

Liquidity measures how quickly and efficiently an asset can be bought or sold without moving its price too much.

High liquidity = tighter spreads, faster trades, and stable prices.

Low liquidity = slippage, delays, and volatile moves—even on small orders.

Why It Matters:

Whether you’re trading large positions or just DCA-ing in, liquidity affects your entry and exit costs. It's the difference between smooth sailing or price turbulence in every transaction.

Your Move:

👉 Look for assets with strong volume and tight spreads 📊

👉 Avoid low-liquidity zones during major market moves ⛔

👉 Use liquidity as a filter when picking what to trade ✅

What’s your trick for spotting strong liquidity without digging too deep?

#Liquidity101