#Liquidity101 ๐ง #Liquidity101: What Is It & Why It Matters
Ever heard the term โliquidityโ and nodded along? Letโs fix that:
๐น Liquidity = How easily you can buy or sell an asset without affecting its price too much.
๐น High liquidity = Tighter spreads, faster trades, less slippage.
๐น Low liquidity = Wider spreads, slower fills, more price jumps.
๐ In crypto, liquidity affects:
โ Trade execution speed
โ Market stability
โ Your profit margins
๐ก Pro Tip: Stick to high-liquidity pairs for better trading experience โ like BTC/USDT, ETH/USDT, or other major markets on Binance.
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