#Liquidity101

Liquidity is one of the most important indicators for a trader. It determines how easy it is to buy or sell an asset without significant changes in its price. High liquidity means a narrow spread and fast order execution.

For example, pairs with $BTC or $ETH usually have great market depth. At the same time, rare altcoins may have low liquidity, which creates a slippage risk when executing large orders.

Always check the trading volume before entering a position. The higher the liquidity, the more stable and secure your trade will be.