#交易流动性 🔍 What is trading liquidity? What does "good/bad liquidity" in the cryptocurrency world really mean?

Many newcomers encounter issues while trading:

👉 Placing a buy order and it hasn’t been filled for a long time?

👉 Prices spike when buying and drop when selling?

The root cause is actually a liquidity issue, let’s clarify it today👇

💧 1. What is trading liquidity?

📌 Liquidity = The ability to buy or sell at any time in the market.

Simply put: More orders, thicker depth, and quick transactions mean good liquidity.

📊 2. What is the difference between good and bad liquidity?

Project Liquidity Good Liquidity Bad

Transaction Speed Fast, basically filled in seconds Slow, orders wait a long time

Bid-Ask Spread (Spread) Small, dense orders Large, far apart buy and sell orders

Slippage Small, stable prices Large, easy to overpay/undervalue

User Experience Smooth, comfortable Frustrating, mindset explosion

⚠ 3. What are the risks of poor liquidity?

❌ Buying at market price, the price jumps instantly (being cut)

❌ Stop-loss order triggers, but slips out by $10

❌ Contract liquidation, slippage leads to liquidation

❌ Low liquidity coins on DEX, dropping 30% in 1 minute

✅ 4. How to assess liquidity? (Binance practical operation)

👉 Open any cryptocurrency → Trading interface → Check the "Depth Chart" and "Order Book":

The denser the orders (more red and green numbers up and down) → The better the liquidity

The smaller the bid-ask spread (e.g., 0.01~0.1 USDT) → Indicates lower slippage

🧠 5. Practical advice:

🔹 New traders are advised to prioritize:

✔ Mainstream coins (BTC, ETH, BNB)

✔ Popular spot or contract coins

✔ Coins with high trading volume in 24 hours

🔸 Be cautious when participating:

⚠ Newly listed coins, small trading pairs, obscure contracts

⚠ Small coins on DEX, check liquidity pools first

✍ In summary:

Liquidity determines whether your trading can be "bought and sold anytime, reasonably executed"

It’s not that the coin is bad, it’s that the market has no buyers!