#Liquidity101 💧 #Liquidity101

Liquidity is the lifeblood of any financial market—including crypto.

🔹 High Liquidity means you can buy/sell quickly with minimal price changes. It reduces slippage and makes trading smoother.

🔹 Low Liquidity means fewer buyers/sellers—wider spreads, higher volatility, and more risk.

✅ A highly liquid asset (like BTC or ETH on Binance) usually has tight bid-ask spreads and deep order books.

⚠️ Illiquid coins can spike or crash with a single large trade—traders beware!

💡 Pro Tip: Always check volume and order book depth before entering trades. Liquidity tells you how “safe” or “stable” the trade might be.

Trade smart, stay liquid.