#Liquidity101 ✅ What is Liquidity in Crypto?
Liquidity refers to how easily and quickly you can buy or sell a cryptocurrency without causing a big price change.
---
🔑 Key Points
High Liquidity = Easy, fast trades with stable prices.
Low Liquidity = Harder to trade, more price slippage, and larger spreads.
---
📌 Bitcoin ($BTC ) Example
Highly Liquid: BTC has massive daily trading volume (over $10B).
Tight Spreads: Small difference between buy/sell prices on major exchanges.
Deep Order Books: Lots of buy/sell orders near market price.
Low Slippage: Large trades don’t drastically move BTC’s price.
24/7 Global Trading: Continuous activity adds to liquidity.
---
📊 How to Measure Liquidity
Metric BTC Status
24‑Hr Volume Very high (> $10B)
Bid‑Ask Spread Very narrow on major exchanges
Order Book Depth Deep, especially on Binance, Coinbase
Slippage Minimal for most trades
---
⚠️ Why It Matters
Faster execution
More stable prices
Less risk from slippage
Harder for whales to manipulate the market
#Write2Earn
