#Liquidity101 #Liquidity101

What is liquidity in the crypto world?

Liquidity is simply how easy it is to buy or sell a cryptocurrency without significantly moving the price.

When liquidity is high:

You can enter and exit trades quickly

It reduces the bid-ask spread when you open or close your position

It protects you from price slippage

The most important tips for increasing the liquidity of your wallet and the platform you trade on:

1. Always choose major pairs (like BTC/USDT or ETH/USDT) as they are the most traded 🔄

2. Participate in liquidity pools on your platform and earn fee rewards 📈

3. Monitor the daily trading volume: the higher the volume, the better the liquidity 👀

4. Use limit orders instead of market orders to have more control over the price$BTC