#Liquidity101

Why It Matters in Crypto Trading

Ever tried selling something but couldn’t find a buyer? That’s what poor liquidity feels like in crypto. 😅

So, what is liquidity?

🔹 Liquidity = How easily you can buy or sell a crypto asset without changing its price too much.

✅ High liquidity = Fast trades, tighter spreads, stable prices (usually on big exchanges like Binance).

⚠️ Low liquidity = Price swings, delays in orders, or even slippage. Be careful when trading lesser-known tokens!

💡 Why should beginners care?

Because liquidity impacts how smoothly and safely you can enter or exit a position.

🧠 Quick Tip: Always check trading volume before jumping in. More volume usually means better liquidity.

👇 How do you assess liquidity before trading? Let’s help others learn!