#Liquidity101
đ§ #Liquidity101: The Lifeblood of Every Crypto Market
If you're trading on Binance or any exchange, you need to understand liquidity. Here's why it matters:
đ What is Liquidity?
Liquidity = how quickly and easily you can buy or sell an asset without causing a big price change.
đ High Liquidity:
â Faster execution
â Tighter bid-ask spreads
â Lower slippage
â Easier entry/exit â even with large positions
âĄď¸ Found in top pairs like BTC/USDT, ETH/USDT
đ Low Liquidity:
â ď¸ Slower trades
â ď¸ Bigger spreads
â ď¸ Higher slippage risk
â ď¸ Hard to exit quickly without affecting price
âĄď¸ Often in low-cap or newly listed tokens
đĄ Pro Tip:
Before placing a big trade, check the order book depth and 24h volume to avoid surprises.
Liquidity isnât just a buzzword â itâs a traderâs shield and a scalperâs edge.
How do you manage low-liquidity risks? Letâs hear it below! đ
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