Liquidity: Why is it important?

Liquidity = easy to buy/sell an asset QUICKLY and at a FAIR price.

Low? → Risk of slippage (execution worse than price) and poor execution.

How to check:

1. 🔍 Volumes (the higher, the better).

2. ↔️ Bid/Ask Spread (the narrower, the better).

Tip: Use limit orders!#Liquidity101