#Liquidity101
No liquidity, no way – that's why #Liquidity101 is a topic all traders should grasp.
Liquidity on the exam: it's the amount of assets available on the exchange – the higher it is, the easier it is to enter/exit, less slippage, easier executions.
The depth chart shows how much can be sold/bought at this price without moving the price – it’s the heart of market horns.
You should treat the exchange like a river – the smoother it flows, the better the ride.
Low liquidity = high risk of price drop with a larger order – you enter and… boom, flash crash.
Therefore:
Choose markets with good volume and a deep order book.
With low-liquidity tokens – ENTRY only micro.
Check slippage: in Binance settings, you can see how many percent the price will move with your volume.
#Liquidity101 #Liquidity101 control, plan, and precision. Those who feel liquidity – keep the price and emotions under control.