#Liquidity101 #Liquidity101 Before entering a crypto trade, it's important to evaluate liquidity—this tells you how easily you can buy or sell an asset without significantly affecting its price. High liquidity usually means tighter spreads and faster order execution. To assess liquidity, check the 24-hour trading volume and the order book depth on platforms like Binance. A narrow bid-ask spread is also a good sign of healthy liquidity. Low liquidity can lead to slippage, where your trade executes at a worse price than expected. To reduce slippage, consider using limit orders instead of market orders, trading in smaller amounts, and avoiding low-activity periods. These simple steps can help you trade more efficiently and protect your profits.