Ever wondered why some coins can move 10% so quickly? 👀
One big reason can be liquidity.
Liquidity basically means how easily an asset can be bought or sold without causing a huge change in its price.
A coin with high liquidity usually has lots of buyers and sellers, so trades can happen more smoothly.
A coin with low liquidity can be very different. Even a relatively small trade may move its price a lot.
So when looking at a crypto project, don't just check the price.
Market cap, volume and liquidity can tell you much more about what's actually happening. 📊
DYOR 🧠
#cryptoeducation #CryptoBasics #liquidity #cryptotrading #BinanceSquare
follow for more 👍
One big reason can be liquidity.
Liquidity basically means how easily an asset can be bought or sold without causing a huge change in its price.
A coin with high liquidity usually has lots of buyers and sellers, so trades can happen more smoothly.
A coin with low liquidity can be very different. Even a relatively small trade may move its price a lot.
So when looking at a crypto project, don't just check the price.
Market cap, volume and liquidity can tell you much more about what's actually happening. 📊
DYOR 🧠
#cryptoeducation #CryptoBasics #liquidity #cryptotrading #BinanceSquare
follow for more 👍