๐ Crypto Basic Lesson: 7
Liquidity in Crypto Trading
Liquidity means how easily you can buy or sell an asset without affecting its price too much.
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๐น High Liquidity
Many buyers and sellers
Trades execute quickly
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๐น Low Liquidity
Few buyers and sellers
Price moves sharply with small orders
Higher risk
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๐ Why Liquidity Matters
Helps avoid slippage
Shows where big traders (whales) are active
Liquidity zones often become price targets
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๐ Liquidity Zones
Above equal highs โ Buy-side liquidity
Below equal lows โ Sell-side liquidity
Big traders often push price to these areas to trigger stop losses and collect liquidity.
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