#Liquidity101

💧 Liquidity is a fundamental element in the trading world, referring to how easily a particular asset can be bought or sold without causing a significant price fluctuation. The higher the liquidity, the easier it is to execute trades quickly and at stable prices.

For example, pairs like BTC/USDT enjoy high liquidity due to the large number of traders involved, resulting in low spreads and reduced slippage. Conversely, assets with low liquidity are fraught with risks, as you may struggle to find a buyer or seller easily, and your trade may execute at an undesirable price.

Liquidity comes from trading volume and the number of participants in the market. Therefore, new traders are advised to start with pairs or assets that have high liquidity to minimize risks.