💧 Market Liquidity – Why is it Important?
Before entering any trade, you must ask yourself:
Is this asset easy to buy and sell .. ? 🤔
🔹 Liquidity = The ease of converting an asset to cash quickly without significantly changing its price.
📈 High Liquidity?
✅ Fast order execution.
✅ Low spread (the difference between buying and selling price).
✅ Example: BTC or ETH on major exchanges.
📉 Low Liquidity?
⚠️ Difficulty in executing orders.
⚠️ You might sell at a loss due to a lack of buyers.
⚠️ Example: Small or new cryptocurrencies.
💡 Tip for beginners: ..
Choose assets with strong market liquidity .. so you can enter and exit easily without unexpected losses.
