💧 What is liquidity and why does it matter in crypto? 🤔💸
If you don't understand what liquidity is, you're likely losing money even on good entries 😰
🔍 Liquidity is the volume at which you can buy or sell an asset without a significant price movement.
🟢 High liquidity = 🔥 quickly in, quickly out, minimal slippage
🔴 Low liquidity = 💀 bought → price shot up, sold → dropped down
❗ Why is this important for a trader?
💥 When you open a position in a pair with low trading volume — your order can “move” the market!
📉 This means you'll buy higher than you wanted and sell lower than you planned. This = losses, even if the idea was correct.
👀 How to check liquidity before entering?
✅ Look at:
• 🔢 Trading volumes over the last 24 hours
• 📊 Order Book
• 📉 The spread between buy and sell prices
👉 The smaller the spread and the larger the volume — the better the liquidity.
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