#Liquidity101 What Is Liquidity & Why It Matters

Liquidity = How easily you can buy/sell without big price changes.

• High liquidity: Fast trades, low slippage

• Low liquidity: Price jumps, hard to enter/exit

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🎯 How It Affects You

• Big market orders on low-liquidity tokens = bad execution

• You get slippage — worse price than expected

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🔍 How I Check Liquidity

1. 24h trading volume

2. Order book depth

3. Price impact (on DEXs)

4. Pool size (for tokens on AMMs)

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🧠 Tips to Reduce Slippage

• Use limit orders

• Trade during high volume hours

• Split big orders

• Set low slippage tolerance on DEXs

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💬 Always check liquidity before you trade. It can make or break your entry!

What’s your best tip for avoiding slippage?👇

#CryptoTips #Liquidity #Slippage #Binance #DeFi