🌊 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?