Why is it Important to Know How to Interpret and Measure Liquidity in the Crypto Market?

TL;DR Liquidity determines how quickly and cheaply assets can be traded in crypto markets without distorting prices, defining their real stability. Wide spreads, low volume, and weak order books are red flags — trading without watching these metrics multiplies your risks. A proper liquidity read helps anticipate trend breaks, identify volume absorption zones, and validate. . . source: https://crypto-economy.com/why-is-it-important-to-know-how-to-interpret-and-measure-liquidity-in-the-crypto-market/