Liquidity 101: The Lifeblood of Every Crypto Market š§
Liquidity is one of the most overlooked yet crucial aspects of crypto trading. Simply put, liquidity refers to how easily an asset can be bought or sold without drastically affecting its price. High liquidity means smoother trades, tighter spreads, and better price stabilityāideal for both beginners and pros. Low liquidity, on the other hand, can lead to slippage and unpredictable price swings. Platforms like Binance maintain deep liquidity by matching buyers and sellers efficiently, while DeFi platforms rely on liquidity pools. Understanding liquidity helps you choose when, where, and how to trade. Itās not just about the priceāit's about how easily that price can become your reality. š±š