Day 18 – What is Liquidity in Crypto?

💧 A coin can look profitable… but liquidity decides if you can sell it.

Liquidity means how easily you can buy or sell a cryptocurrency without affecting its price too much.

✅ High Liquidity:

• Many buyers and sellers

• Fast trades

• Stable price movement

• Low slippage

Example: BTC/USDT, ETH/USDT

❌ Low Liquidity:

• Few buyers and sellers

• Hard to sell quickly

• Big price jumps

• High slippage (you sell at a worse price)

Why liquidity matters:

Even if a coin pumps, you may not be able to exit profitably if liquidity is low.

Beginner Tip:

Always trade coins with good liquidity and volume, especially on Binance.

Key Takeaway:

👉 Liquidity = how fast and safely you can enter/exit a trade.

Save this post — liquidity protects you from hidden losses.

#Liquidity #CryptoTrading #BinanceLearning #CryptoEducation #TradingBasics