đ§ Liquidity101 â The discreet engine behind every transaction
đ What is liquidity?
It is the ability to buy or sell an asset quickly without significantly impacting its price.
đ When it is high:
â Orders are executed without delay
â Very little price slippage
đ When it is low:
âïž High risk of slippage
âïž Significant price gaps
âïž Your orders may not fill properly
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đ How to spot good liquidity?
1. Analyze the depth of the order book
2. Look at the 24h volume and the spread between buying and selling
3. Favor major pairs like BTC/USDT or ETH/USDT
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đ§ Tips to avoid unpleasant surprises
Use limit orders rather than market orders
Avoid trading during spikes in volatility without a strategy
Stick to well-liquid assets â beware of overly exciting small tokens đ
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đš Remember:
Understanding liquidity helps better protect your trades, your funds, and your emotions. Gain efficiency by mastering this pillar of trading.
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đŹ And you, what do you check before making a trade?
