Liquidity is the ability to buy or sell an asset quickly, without causing significant price fluctuations. Learn more here.

Liquidity is the lifeblood of efficient crypto trading. It determines how quickly and smoothly assets can be bought or sold at stable prices. And yet, many traders tend to overlook liquidity’s role in reducing 

, tightening spreads and improving execution speed — all of which directly impact profitability.

Bybit has made significant strides in improving liquidity across its trading pairs, ensuring that traders benefit from faster execution, better pricing and minimal market impact across markets. This article will explore what liquidity is, why it matters, how to measure it — and why Bybit offers one of the most liquid trading environments in the industry.

Liquidity is the ability to buy or sell an asset quickly, without causing significant price fluctuations. In crypto trading, liquidity is determined by trading volume, order book depth and market participation. A highly liquid market ensures tighter spreads, faster order execution and reduced slippage, providing a more stable and efficient trading experience.

. When many buyers and sellers actively place orders, transactions occur swiftly and price movements remain stable. Conversely, a lack of liquidity can lead to price gaps, delays and higher trading costs.

A deep order book is key to strong liquidity, with large quantities of buy and sell orders spread across multiple price levels. This means that when a trader places a large order, it’s absorbed by the existing orders, without drastically moving the market price. In contrast, an illiquid market has fewer participants and a shallower order book, so that a single order for an asset could drastically shift its price. This leads to greater price volatility and higher execution costs.

 play a crucial role in maintaining liquidity by continually placing buy and sell orders. By providing a steady flow of orders, they help stabilize prices and narrow the 

, ensuring smoother trading conditions for all participants.

In crypto trading, liquidity also varies between 

 Spot liquidity is reflected in lower spreads, meaning traders can buy or sell assets at more competitive prices. In contrast, lower slippage is the key measure in other types of trading.

Liquidity has an impact on every aspect of trading, from execution speed to profitability. The following considerations make liquidity a key factor for traders.

A tighter bid-ask spread ensures traders 

 at fairer prices. This is especially beneficial for 

 who rely on small price movements for profits.

Minimal slippage and better price stability

Liquidity determines the degree to which an order affects price levels. In a highly liquid market, a $100,000 trade might move an asset’s price by only a fraction of a percent, while in an illiquid market, the same trade could cause a sharp price swing.

Liquidity allows traders to execute orders almost instantly at the expected price. In contrast, low-liquidity conditions may mean that, due to market fluctuations, orders will take longer to fill, or may execute at unfavorable prices.

During sudden price movements, a deep order book absorbs large trades, preventing extreme spikes or crashes. This is crucial for maintaining price stability in volatile markets: traders can execute strategies with greater confidence, knowing that price fluctuations will be more controlled.

How to identify and measure liquidity in crypto trading

While many traders assume liquidity is measured simply by trading volume, a deeper analysis is required to assess true liquidity conditions. The following section explains how traders can evaluate liquidity effectively.

A deeper order book means that multiple buy and sell orders exist across different price levels, supporting efficient trade execution with minimal price movement This is a strong indicator of liquidity, since it reflects a market’s ability to handle both small and large orders without sudden price fluctuations. 

 pair on Bybit has consistently shown strong order book depth, with the top three bid and ask levels holding significantly higher quantities as compared to other platforms. This enables smoother execution for all traders, from retail investors to institutions. 

A true test of liquidity is the degree to which the market price moves when executing a large order. In a highly liquid market, trades are absorbed across multiple levels, ensuring minimal slippage and price disruption. 

Traders can simulate a large market order by entering a significant trade volume and observing how much the price shifts before execution. A market order that significantly changes the last traded price suggests lower liquidity and potential inefficiencies in trade execution. 

For example, in order to move an asset’s price from $1,877.64 to $1877.66 on Bybit, you’ll need to buy 57.02856 + 168.67890 + 26.21569. Likewise, in order to move the price from $1,877.63 to $1,877.60, you’ll need to sell 114.28408 + 16.35036 + 17.30490.

Order absorption measures how well a market handles large trades without causing price spikes or slippage. A highly liquid market has deeper buy and sell walls, allowing it to process large transactions smoothly.

Here’s an example: For Bybit’s ETH/USDT pair, large trades require consuming multiple price levels before affecting the last traded price. This ensures stability even during high trading volumes. A trader purchasing 30 ETH only absorbs Level 1 and Level 2 sell orders, whereas on lower-liquidity platforms, multiple levels would be affected, increasing price volatility.

This high order absorption capacity is vital for traders executing large transactions, ensuring consistent execution quality across all market conditions.

The bid-ask spread represents the difference between the highest bid price (what buyers are willing to pay) and the lowest ask price (what sellers are willing to accept). A narrower spread indicates stronger liquidity, because it means there are many active buyers and sellers competing for the best prices. Conversely, a wider spread suggests a more illiquid market, leading to higher trading costs and greater price fluctuations.

The first consideration is to compare the order book depths between different exchanges. Exchanges with higher quantities at each price level (for both bid and ask) suggest higher liquidity.

Step 1: Identify the initial market price

Step 2: Simulate a market order (without executing it)

Step 3: Calculate the final execution price

Step 5: Compare the market impact between exchanges

Bybit’s approach to liquidity: Building the best trading experience

Bybit has implemented advanced liquidity solutions to ensure traders experience tight spreads, fast execution and minimal slippage.

One of Bybit’s most significant advancements is its Retail Price Improvement (

) Order, a first-of-its-kind feature designed to enhance liquidity specifically for retail traders. Unlike traditional market-making models, which oftentimes prioritize institutional orders, RPI orders provide retail traders with access to deeper liquidity pools, ensuring better prices and deeper order book support.

Bybit has also strengthened its liquidity infrastructure through strategic partnerships with institutional liquidity providers. These collaborations increase market depth, reduce slippage and improve overall trading efficiency across spot markets.

The impact of Bybit’s liquidity innovations

Following the introduction of RPI orders and enhanced market-making strategies, Bybit has seen substantial improvements in liquidity across key trading pairs. The results are clear:

Bybit’s liquidity enhancements have created a more efficient and stable trading environment, benefiting both retail and institutional traders.

For retail traders, Bybit’s liquidity improvements mean faster order execution, lower trading costs and better pricing. By ensuring better liquidity conditions, Bybit makes it possible for traders to execute their strategies with greater confidence and efficiency.

For high-volume and institutional traders, deeper liquidity pools ensure that large orders can be executed without significantly moving the market price. This is crucial for traders managing large portfolios or executing algorithmic trading strategies.

Bybit’s liquidity solutions also enhance overall market efficiency, improving execution quality across all trading pairs.

Liquidity is the backbone of efficient crypto trading, shaping everything from execution speed to price stability. Bybit has consistently demonstrated its commitment to providing a highly liquid market through innovations like RPI orders, deep order book depth and strategic partnerships with institutional liquidity providers.

Whether you’re a retail trader seeking tighter spreads and faster execution or an institutional trader executing large orders with minimal price impact, Bybit will offer you a best-in-class trading experience. 

If you value fast execution, minimal slippage and a robust liquidity environment, Bybit is the exchange of choice.

Intermediate

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Liquidity in crypto trading: Why it matters and how to spot the best conditions

Bitcoin's Price Officially Breaks $100,000: 4 Key Drivers Behind the Milestone

 has officially crossed the $100,000 mark, setting new all-time highs. Once dismissed by many as a scam or speculative experiment, Bitcoin has grown to become one of the top 20 most valuable assets globally, with a total market cap nearing $2 trillion. Over the past decade, Bitcoin has undergone one of the most significant perception shifts in financial history, with mass media and institutions reversing their skepticism and embracing its potential. The $100K milestone represents more than just a price point—it’s the result of years of increasing mainstream acceptance. Institutional investors are integrating Bitcoin into their portfolios, Bitcoin ETFs are breaking records, favorable global economic trends are driving demand, and political shifts are creating a more supportive environment. Let’s take a closer look at the key factors behind Bitcoin’s rise to over $100,000.

US Bitcoin ETFs: Validation For Traditional Investors

On January 10th, the SEC granted regulatory approval for 11 U.S. Bitcoin exchange-traded funds (ETFs). While European-listed exchange-traded notes (ETNs) had been available for years, the approval and launch of U.S.-based Bitcoin ETFs marked a pivotal moment for Bitcoin. This milestone not only eliminated significant barriers to entry for traditional investors but also reshaped public perception of Bitcoin as a legitimate and regulated financial asset. Here are some highlights.

Macroeconomic Factors: Bitcoin as a Hedge

Global economic conditions have increasingly positioned Bitcoin as an alternative investment for investors looking to protect and grow their wealth. Traditional investment options like bonds and savings accounts have become less attractive due to a combination of low interest rates, rising inflation, and negative real yields in several major economies. These shifts have driven both retail and institutional investors to view Bitcoin as a hedge against economic instability and a store of value, often referred to as digital gold.

Political Support: A Crypto-Friendly Climate

The political and regulatory climate is increasingly tilting in favor of cryptocurrencies, providing strong momentum for Bitcoin's growth. Governments and policymakers worldwide are recognizing the potential of blockchain technology and digital assets, shifting from skepticism to proactive engagement. These political tailwinds, coupled with regulatory advancements, are fostering a more secure and predictable environment for Bitcoin, boosting investor confidence.

Continued Institutional Adoption: Bitcoin Goes Mainstream

Institutional investors and corporations are driving Bitcoin’s transformation from a niche digital asset to a widely accepted investment and financial tool. Seen as a hedge against inflation, a store of value, and an alternative to traditional financial instruments, Bitcoin’s appeal has surged among major players in the financial world. This growing adoption is a key factor in Bitcoin’s price reaching new highs, underpinned by its integration into treasury strategies, investment portfolios, and payment systems.

Conclusion: Your Opportunity to Join the Bitcoin Momentum

As Bitcoin soars past the $100,000 pricepoint and sets the stage for further growth, there’s no better time to take your trading to the next level. Bybit (powered by SATOS) invites Dutch traders to participate in our 

, where you can can win an VIP trial to enjoy 

This exclusive event is your chance to experience Bybit’s industry-leading VIP Program while capitalizing on Bitcoin’s historic rise. Don’t miss out—

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Bitcoin Officially Breaks $100,000: 4 Key Drivers Behind the Milestone

Ondo Finance has launched a new institutional-grade bridging solution for tokenized real-world assets (RWAs), leveraging LayerZero’s decentralized verifier network (DVN) for enhanced security.

The S&P 500 rose 0.57% to a record high, driven by investor focus on upcoming inflation data, despite concerns over new tariff threats and the Federal Reserve's cautious stance on rate cuts.  Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 2.60%, with Bitcoin and Ether dropping by 4.08% and 3.27%, respectively in the past 24 hours.

Today's top performer is FTM, which surged 9.9% following Sonic Labs' partnership with OctavFi for advanced on-chain financial management.

Sonic Labs (FTM), founded in 2018, formerly known as Fantom Foundation, supports the development of Sonic, a new layer-1 blockchain designed for fast, efficient transactions and secure connectivity to Ethereum. It focuses on creating decentralized applications and managing governance for the Sonic ecosystem, which is set to launch later in the year. 

 to bring institutional-level financial management, advanced on-chain treasury management, and financial reporting to its protocols.

Check Out the Latest Prices, Charts, and Data of 

 a new institutional-grade bridging solution for tokenized real-world assets (RWAs), leveraging LayerZero’s decentralized verifier network (DVN) for enhanced security. This solution enables seamless transfers of USDY, Ondo’s yield-bearing tokenized US Treasuries, across Ethereum, Arbitrum, and Mantle. The bridging architecture incorporates trusted bridge providers like PolyhedraZK and Axelar, along with Ondo’s own DVN, ensuring secure and decentralized transaction validation. The integration is available now via Ondo’s frontend and Stargate Finance, with support for additional chains planned.

Yesterday, BTC spot ETF flows recorded a total outflow of $122.8M, including $36.1M from GBTC and $86.7M from non-GBTC funds.

Check Out the Latest Prices, Charts, and Data of  

, requiring wallet and social handle registration by Dec 2, 2024, 2 PM UTC. Eligibility criteria include completing 3 transactions across 2 apps on Movement's testnets and finishing Road to Parthenon quests. After TGE, users can claim MOVE tokens on Ethereum Mainnet or Movement Mainnet, with the latter offering a 1.25x multiplier. More airdrop seasons will follow post-mainnet launch.

Beginner

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Ondo Launches Institutional-Grade Bridging for Tokenized RWAs with LayerZero Security

How to Use the Bybit Card to Earn 15% Cashback on Top of All Black Friday Deals

Originally an American tradition, Black Friday has evolved into a global shopping event and is now a significant date in the Dutch retail calendar. In the Netherlands, Black Friday has grown in popularity, with major retailers like Bol.com, Coolblue, MediaMarkt, and Bijenkorf offering deals across a wide range of products.

As a nation known for valuing savings, Black Friday provides an excellent opportunity to stack discounts and maximize value. Bybit's Black Friday Card Promotion adds an extra layer of savings with 

 on both online and offline purchases. Explore how the Bybit Card works, along with practical examples of savings during Black Friday shopping, to make the most of this year’s event.

How Can You Take Part in This Black Friday Promotion?

Joining the Bybit Black Friday Promotion is simple! Follow these steps to start earning 

 ontop of all your Black Friday deals Weekend:

Practical Examples of Savings With Bybit Card

Simply input your Bybit Card details at checkout or use instant payment methods like 

 to complete your online purchases seamlessly. Cashback is automatically applied to your account, making savings effortless.

For offline purchases, use your Bybit Card as a physical card or digitally through 

. As long as the store accepts PIN payments, you’ll earn cashback rewards instantly.

After the Black Friday promotion ends, the Bybit Card reverts to its 

 offer, allowing you to save on all your purchases through the rest of the year. Whether you’re buying Sinterklaas gifts, stocking up for Christmas, or grabbing post-holiday deals, the savings keep rolling in.

The Bybit Card is your ticket to maximizing savings on the biggest shopping day of the year. From tech to festive essentials, every purchase becomes more rewarding.

Learn more about the Bybit Card Black Friday Promotion 

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How Can You Use the Bybit Card to Earn 15% Cashback on Top of All Black Friday Deals?

Bybit Guide

Trading

Spot X is a platform aggregating all of Bybit’s latest Spot listings on one page via various events: Token Splash, ByStarter, Launchpad, Launchpool and ByVotes. 

 is the go-to method for many traders because of its simplicity. After all, you simply need to buy and sell your desired cryptocurrency at the current market price to earn quick short-term profits. And now, with Bybit’s Spot X, Spot traders can easily reap even more crypto token rewards through our variety of Spot listing products, all within a single interface.

 is a platform aggregating all of Bybit’s latest Spot listings on one page via 

: Token Splash, ByStarter, Launchpad, Launchpool and ByVotes. 

Each of these events promotes specific in-demand or upcoming crypto projects with associated rewards in various ways.

With Spot X, you can assess ongoing projects before participating in prize pools and review past projects' performances, even if their campaigns have ended, in order to learn more about the tokens before trading in them.

Spot X offers several advantages for Spot traders, as listed below: 

Spot X shows a transparent overview of the total number of participants in the five products, as well as the total amount they’ve invested and the total prize pool. It even includes an average percentage increase in the value of the sale price of a token during the first week after its launch, which helps you better estimate your potential earnings from your investments. Each of these figures is further broken down and reflected for each campaign.

 offers new token listings with their associated prize pools, with two ways for users to earn rewards. Users can choose to deposit the minimum amount of the listed tokens required during the event period, or deposit an equivalent amount of USDT to Spot trade the listed tokens. 

All the deposits made during the event period — including deposits made through on-chain transfers and 

 — will be considered in the calculation to determine your eligibility for rewards. However, it’s important to note that deposits made via internal transfers are excluded from calculations. 

While you can only take part using your main account, all Spot trades performed via Subaccounts or 

 will be taken into consideration. You’ll be able to claim your rewards within 14 days after the end of the Token Splash event.

 allows early adopters to invest in tokens with potential. These projects are typically not listed with any centralized exchanges (CEXs), but have undergone stringent reviews to assess their potential. The tokens may not necessarily be listed, but there will definitely be winners who will receive an airdrop of the tokens. 

ByStarter is divided into four phases: Warmup Period, Subscription Period, Allocation Period and Results Announcement. 

While making a deposit is optional during the Warmup Period, it’s highly recommended that you make the deposit during it so that you can transit smoothly to the Subscription Period. Note that Subaccounts aren’t allowed to join ByStarter.

For the Subscription Period, you’ll need to partake in the ByStarter token project’s quiz and commit a specified amount of tokens to the project, depending upon your VIP tier level. However, the actual range of tokens to be committed still differs from one project to another. Committed tokens will be locked until the end of the Allocation Period. 

Winners are then randomly selected by the system during the Allocation Period. There will be three outcomes from the distribution results:

 is a token launch platform that grants investors early access to pre-listed tokens on Bybit, allowing them to earn the new tokens directly once they get listed. Launchpad has seen several upgrades, with the latest version, Launchpad 3.1, featuring more exciting ways for users to earn rewards.

There are two ways to subscribe to Launchpad, but you can only commit to one method each time you participate in the event. The first is the Subscription method, whereby you commit Mantle (MNT) tokens to subscribe to token allocation. The second approach is a lucky draw in which you commit USDT to win a share of the project token. Like ByStarter, Launchpad has four distinct stages: Snapshot, Subscription, Distribution and Launch.

The Snapshot phase lasts three to four days, during which the daily amount of MNT or USDT in your Funding Account, Spot Account and Derivatives Account (or 

 and Inverse Derivatives Account) will be recorded via hourly snapshots. 

For the MNT Subscription plan, you need to accumulate a minimum of 50 MNT and can commit multiple times if you wish. Meanwhile, for the USDT Lottery track, you’ll need at least 100 USDT to proceed to the Subscription stage, and can choose to earn more Lottery tickets to boost your chances of winning during this phase. Please note that the MNT or USDT tokens you commit during this period will be locked.

During the Subscription Period, simply click on the 

 button to commit either MNT or USDT tokens. During the Distribution phase, winners will receive the new project tokens in their Spot Account or Unified Trading Account (if the account has been upgraded), while their committed tokens will be returned to their Funding Account.

 lets you stake and earn tokens for free. The more tokens you stake, the more you’ll receive. You may unstake your tokens at any time. However, you must stake your tokens for at least one day to start earning. The Launchpool typically lists one or two projects for a fixed period, during which you can stake your tokens to earn your staking currency, new tokens and a USDT bonus. The tokens that you earn will be credited to your 

 lets you vote for your favorite crypto project to be listed as a Bybit Spot pair. During the campaign, two to six projects will be up for voting. The project with the most votes will be listed in the Innovation Zone under Spot Trading. ByVotes consists of five phases: Snapshot period, voting period, winner announcement period, rewards distribution period and launch period.

The snapshot period is held first to ascertain the number of votes allocated to each participant. It takes place one day before the voting starts, at 11:59:59PM UTC. The number of votes you possess is determined by the total holdings of USDT, USDC, USDD, DAI, CUSD and BUSD in your Spot Account, Funding Account and Derivatives Account (or Unified Trading Account and Inverse Derivatives Account). For instance, if you have a total of 100 USDT, you can cast 100 votes. The votes will be airdropped to your main account, which you can then use for your favorite project.

The voting period lasts for 24 hours. Each user can cast a minimum of 100 votes up to 10,000 for each project during the voting period. 

If you’ve voted for the winning project, your corresponding rewards will be airdropped to your Spot Account within four hours after the voting ends. Rewards for each user are capped based on the amount of the total prize pool. You will not be eligible for any rewards if you vote for a project that didn’t get listed

Spot X is tailored to cater to the needs of Spot traders who are perpetually seeking new tokens for investment opportunities. With its user-friendly interface, Spot X provides access to five distinct products, all conveniently navigable within a single page. This consolidated approach simplifies the process of exploring and participating in various events, making it effortless to stay informed about potential investment opportunities. 

Whether you’re a seasoned trader or new to the world of Spot trading, Spot X aims to enhance your token discovery journey, offering a unified and efficient platform for uncovering the latest and most promising tokens in the market. 

Spot X: One-Stop Service to Earn More From Spot Listings

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards