#Liquidity101 💧 Liquidity in the Currency Market – The Water in Which Traders Swim!
#Liquidity101
Imagine you own a rare gem, but you're stuck with it in a desert... who will buy it?!
This is the state of the market when liquidity is nonexistent.
🔍 What is liquidity?
It is the ability to buy or sell an asset (like ETH/USDT) quickly and without the price turning into a nightmare.
🟢 High liquidity:
Means you can buy and sell comfortably, as if you were in a bustling market filled with people.
Your sell order gets executed in seconds, and the price doesn’t fluctuate like a cat’s mood.
🔴 Low liquidity:
This is where the tragedy begins...
You place a sell order and wait, and wait...
Then you see the price drop and you say: "Why is no one buying?!"
👀 The funny yet sad part?
Some currencies have liquidity as if you were trying to sell a wardrobe in the sea!
And the rarer the currency or the more obscure the project, the more likely the liquidity is like a “mirage in the desert.”
💡 The bottom line:
Before you enter a trade, ask yourself:
"Can I exit it without leaving my guts behind?"
So don’t gamble with your liquidity… in a market with no liquidity!
#ETHUSDT