#Liquidity101

📊 Liquidity is one of the key factors that affect the execution of trades in the crypto market. Liquidity refers to how easily a specific asset can be bought or sold without causing significant changes in price.

🔄 The higher the liquidity, the faster your orders are executed and closer to the market price. In low liquidity currencies, you may face price slippage, partial executions, or even failures in executing the trade — especially during market fluctuations.

👁‍🗨 Before entering any trade, I assess liquidity through:

Daily trading volume$

Order Book Depth

Bid/Ask Spread

✅ To reduce price slippage:

I use Limit Orders

I avoid trading during major market news or times of sharp price fluctuations

I divide large trades into smaller parts

Understanding and managing liquidity is the key to smart trading.

#Liquidity101 #CryptoTips #ETHUSDT