Welcome to Risk Week — five days to learn risk management… before the market teaches it the hard way.
Rule #5 — Liquidity Is a Hidden Risk
Many traders focus only on price.
But liquidity can be just as important.
Some tokens look attractive until you try to sell them.
Low liquidity can cause:
• Huge slippage
• Difficulty exiting positions
• Sudden price crashes
Before investing in any asset, check:
• Daily trading volume
• Exchange listings
• Order book depth
In crypto, if you cannot exit the trade easily, the risk is much higher than it appears.
Always remember:
Profit is theoretical until you can actually sell.