Liquidity is like a toll road in the crypto world. When it's smooth (high liquidity), our orders get filled quickly and prices don't jump around too much. But what if liquidity is low? Be prepared to face *slippage* and trap prices! 😭
📉 What Are the Impacts?
Low liquidity can cause:
* Execution prices to differ significantly from order prices
* Failure to enter/exit positions in critical moments
* Panic because the market becomes increasingly unfriendly 😵
🔍 How I Check Liquidity:
* Look at the order book: how tight and thick the buy/sell queues are
* 24-hour volume — the higher, the better!
* Favorite trading pairs (BTC/USDT, ETH/USDT, etc., usually very liquid)
🛡️ Anti Slippage Strategies:
* Use **limit orders**, not market orders (if possible)
* Avoid trading during major news releases (brutal volatility)
* Enter positions when volume is high (usually during the opening of European & US markets)
Don’t let you be short and suddenly the price jumps just because of thin liquidity... like I did earlier, bestie. 😭 #CurhatDikit
Let's also share your version of tips, so we all can profit and not get tricked by spreads! 🫶
