#Liquidity101

Liquidity refers to how easily an asset can be bought or sold without causing major price changes. In crypto, high liquidity means tighter spreads, faster execution, and lower slippage — all essential for effective trading. For example, a highly traded pair like $XRP /USDT typically has deep liquidity, making it easier to enter and exit positions smoothly.

Low liquidity pairs, on the other hand, may suffer from big price swings and slow order fills. This can be risky, especially when trading large volumes or using leverage.

Smart traders always check liquidity before placing a trade.

Do you prioritize liquidity when choosing trading pairs? Let’s talk below! 💬