#Liquidity101

💧 #Liquidity101 – Don’t Let Slippage Drain Your Profits

Liquidity refers to how easily you can buy or sell an asset without impacting its price too much. In high-liquidity markets (like BTC/USDT), orders are filled fast and close to the expected price. But in low-liquidity pairs, you could suffer slippage, poor pricing, or even incomplete orders — especially during volatility.

🔍 How I evaluate liquidity:

Check the order book depth and spread (tight = good).

Look at 24h volume — higher volume usually = better liquidity.

On DEXs, I check pool size and token volatility.

🧠 My slippage-reduction strategies:

Avoid big market orders in low-liquidity pairs — I break them into chunks.

Use limit orders instead of market orders to control execution price.

Trade during high-activity hours for tighter spreads.

💡 Pro tip: Liquidity isn’t just a number—it’s your real cost of entering or exiting a trade. Master it, and you’ll protect your profits better than most.

#Liquidity101 #Slippage #CryptoTips #OrderBook101