LIQUIDITY MATTERS!
Understanding Liquidity is key to successful trading! Here's what you need to know:
- High Liquidity: Fast trades, tight spreads, and less risk!
- Low Liquidity: Slippage, delays, and increased risk!
CEX vs DEX:
- CEX: Faster trades, deeper order books
- DEX: Slower trades (due to gas), depends on TVL
Check Liquidity:
- Spot: Volume and order book
- Futures: Volume and funding rate
- DEX: TVL and pool stats
Low Liquidity = High Risk! Share your worst illiquid trade experience!