Understanding liquidity is key in crypto trading. High liquidity means tighter spreads and faster order execution. Low liquidity can lead to slippage, where trades execute at worse prices than expected. Before entering a position, I always check the trading volume and order book depth. I also avoid low-liquidity pairs to reduce risk. Using limit orders instead of market orders also helps reduce slippage. Liquidity impacts your profits more than you think! Let's learn and grow together in this space. 🚀
