#Liquidity101 #Liquidity101 in Binance (103 words)

Liquidity refers to how easily an asset can be bought or sold without causing a significant price change. In Binance, high liquidity means traders can execute large orders quickly with minimal slippage. Major pairs like BTC/USDT usually have high liquidity due to high trading volume. Binance offers both spot and futures markets, where liquidity plays a crucial role in maintaining tight spreads and fast execution. Market makers and liquidity providers contribute to deep order books, ensuring smoother trades. Understanding liquidity helps users avoid price volatility, manage risk, and optimize trading strategies. It’s essential for efficient and reliable crypto trading.