#Liquidity101
š§ Liquidity 101: The Lifeblood of Trading
Liquidity refers to how easily you can buy or sell an asset without affecting its price. High liquidity = tighter spreads, faster execution, and more accurate pricing.
š¹ High Liquidity Assets: BTC, ETH, and major altcoins on top exchanges ā easy to enter and exit.
š¹ Low Liquidity Assets: New or obscure tokens ā higher risk, wider spreads, potential for price slippage.
Why it matters:
ā Better fills
ā Less volatility
ā Smoother trading experience
Always check order book depth and volume before trading. In crypto, liquidity can shift fast ā trade smart, stay agile. š
