#Liquidity101 Beware of slippage! ⚠️

Market liquidity can both help and ruin your trade. It is what allows you to quickly buy or sell assets without significant changes in price. But not all crypto assets have the same liquidity. While Bitcoin and Ethereum have deep markets and high trading volumes, many altcoins do not — and that's where the problems begin. 💡

Low liquidity tokens often suffer from price slippage — the difference between the expected price of a trade and the price at which it actually executes. This can eat into profits or even turn winning trades into losses. Imagine trying to sell a large amount of an obscure altcoin and watching the price crash during the exit. Not very pleasant. 😬

That's why liquidity is important. Stick to assets with high volume, narrow spreads, and active order books. And when in doubt, use limit orders to stay in control.