When buying crypto, many people focus only on price changes, but rarely pay attention to one thing: liquidity.

In fact, it directly affects your trading experience.

Simply put, liquidity means whether there are enough people in the market willing to buy and sell, and whether your order can be filled smoothly.

For example, active trading pairs like BTC/USDT usually have plenty of buy and sell orders. When you want to buy, it’s easy to find a seller; when you want to sell, it’s also relatively easy to find a buyer.

But it’s different with coins that have very low trading volumes.

Suppose you see a price of $1, but when you place the next large market buy order, it might execute at prices ranging from $1 to $1.01, $1.02, or even higher. That’s why the average execution price may differ from the price you initially saw.

So when I look at a new coin, besides the price change percentage, I also pay attention to:

Trading volume, order book depth, and the bid-ask spread.

Price rising quickly doesn’t necessarily mean the trading experience is good. For beginners, once you understand liquidity, you’ll start to realize why a “10% increase” can have completely different trading difficulty depending on the coin.

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