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 Learn

Copy Trading

Excited for the future of crypto copy trading? From Bybit to Gate.io, make sure to give these best crypto copy trading platforms a try.

It seems like everyone is investing and trading crypto right now, and some are striking it rich. However, buying and selling crypto successfully involves a lot of research, practice and moving parts. Fortunately, this doesn’t mean you have to miss out.

If you’re new to the crypto world and haven’t put the time in to develop a successful trading strategy and master the markets, copy trading will allow you to profit just like the big dogs. In this guide, we go over the ins and outs of copy trading, as well as the best crypto copy trading platforms to make the most of this 100 percent hands-off approach.

Crypto copy trading is a dynamic concept allowing anyone to copy the exact trades of proven cryptocurrency investors on autopilot, completely automating the entire crypto trading process.

With traditional crypto trading, you need to study the markets, look at charts, and perform quite a bit of research to support your trading decisions. Moreover, after placing a buy or sell trade, it’s up to you to manage the trade and exit at the right time.

 is a different story. It offers newbies and passive investors a way to profit from crypto markets without really having to do anything at all.

To copy trade, you simply choose a trader you’d like to copy from one of the crypto copy trading platforms below, sync your brokerage account, and let technology handle the rest. In a nutshell, that’s all there is to it.

Why Is Crypto Copy Trading Useful for New Traders?

Successfully trading crypto often requires many hours of time and research. Not only do you have to know how to locate “hidden gems” and trading opportunities, but you must also manage each trade, which takes even more time, and strict control over your emotions.

Crypto copy trading eliminates the need for all of this work. It lets anyone — regardless of their experience or skill — profit from investing in crypto markets without investing their time.

Is crypto copy trading profitable? This is one of the first questions people ask when discussing copy trading. The next is whether or not it’s “beginner friendly.” The answer to each of these questions is a resounding YES!

However, while the profits you can achieve with crypto copy trading depend largely upon the trader or firm whose trades you choose to mirror, copy trading in general is extremely beginner friendly. You don’t have to study, research or even place trades. With copy trading, investing in crypto couldn’t get any easier.

When crypto copy trading with any of the platforms below, everything is done for you on autopilot. It’s truly a hands-off approach to trading that allows you to cash in on the crypto markets without much effort or time.

You simply monitor the strategies you’re copying and make adjustments as needed to minimize losses and maximize profits. Compared to the work performed by the average trader — advanced analysis, constantly keeping an eye on the markets — crypto copy trading is as hands-off as trading gets.

Another reason crypto copy trading is beneficial for new traders is the minimal investment needed to get started. In fact, with many of today’s best crypto copy trading platforms, you can start copy trading and growing your brokerage account or crypto wallet with as little as $200.

While copy trading crypto is ideal for new traders, and incredibly easy to get started with, like any form of trading, there are some drawbacks and risks to consider.

Is crypto copy trading profitable? Yes, it is for many, but whether or how much you profit from it depends entirely on whose trades you choose to copy. There’s no guarantee copy trading will yield big profits for you.

As a copy trader, your best approach is to divide your portfolio up between several different successful traders. This will keep you from relying on one trader or trading strategy, which could put you at risk of losing it all.

Even with the best crypto copy trading platforms and strategies, you’re less likely to develop and rely on your own trading strategies. Since copy trading makes profiting from crypto so easy, it doesn’t provide traders with much incentive to study, learn, and grow as profitable traders themselves.

Even if you’re happy with your profits, by constantly relying on copy trading, you may be missing out on even more money. The cryptocurrency industry is always evolving, sometimes day by day. If you rely solely on copy trading, you won’t be able to evolve with it, and could miss out on some lucrative opportunities.

Copy trading is also more expensive than going it alone. Although the best crypto copy trading platforms and traders often charge reasonable fees for their strategies and services, some fees can be quite steep, and should be considered along with your budget before you make any investment decisions.

Best Crypto Copy Trading Platforms to Try

The word is out, and the question of whether crypto copy trading is profitable has been answered by the masses. Today, it seems like everybody is jumping into crypto to try and strike it rich or make a quick buck.

However, with thousands of different cryptocurrencies now available to trade or invest in — and millions of people either dipping their toes into crypto, or diving in headfirst — there are more and more crypto copy trading platforms and strategies to choose from.

While finding a profitable trader to copy is still up to you, we’ve saved you the hassle of finding them for yourself. After extensive research and putting dozens of copy trading platforms to the test, we’ve rounded up 13 of the best crypto copy trading platforms in the industry today.

1. Bybit – Best Overall Copy Trading Platform for 2022

Principal traders can allow others to copy their strategies and trades via the Bybit platform to profit from their work. In return, they receive 10 percent of the profits earned by each follower. Unlike many crypto trading platforms, Bybit brings experienced principal traders and new traders together to create a win-win crypto trading experience for everyone.

Currently, Bybit supports up to 15 different trading pairs, including BIT/USDT, ETH/USDT, XRP/USDT, and several other highly liquid pairs. This means volume and trade execution is rarely a problem, which isn’t always the case with other platforms not found on this list of the best crypto copy trading platforms.

After selecting a principal trader to copy, you simply set the parameters (such as your preferred leverage) for your copy orders. Then, all new copy trades will automatically be initiated via a market order, according to those parameters, immediately after being placed by your chosen principal trader.

• Leverage up to 100x for crypto orders

Keen on beginning your copy trading journey with Bybit? 

 and enjoy Bybit's all-in-one copy trading platform today.

2. eToro – Best Platform for Social Trading

In addition to stocks, commodities and FX pairs, the platform currently supports over 16 cryptocurrencies. Whether you want to trade Bitcoin, Apple stock or gold, eToro lets you easily connect with the world’s largest social trading community and discover a diverse range of traders and strategies to copy.

To quash any doubts or questions about a particular crypto copy trader’s profitability, you can see how many times a principal trader has been “liked” — and even read comments made by copy traders just like you. The platform also allows you to adjust your risk and exposure levels, so you’re not completely dependent on another trader’s activity.

• Thousands of established, verified traders to copy

• Wide variety of supported cryptocurrencies

• Can read comments and messages from other traders

• Inactivity fees and $5 withdrawal fee

3. 3Commas – Best Platform for Bot Trading

That said, with 3Commas, it’s all about the bots. As one of the best crypto copy trading platforms for bot trading, you can copy trade using any number of strategies. You simply choose the 

 you want to copy — and the bot will take care of the rest.

Like many of today’s best crypto copy trading platforms, 3Commas supports several exchanges and uses secure cold wallets for storing customer funds. All in all, they have a good variety of bots and strategies to select from, a beginner-friendly interface, and a solid reputation — which is all good news for newer traders.

• Great selection of trading bots and strategies

• Can be a little complicated for newer traders to navigate

4. Shrimpy – Best Platform for Portfolio Rebalancing

Not only can you access Shrimpy’s copy and social trading bots, but you can develop your own custom copy trading strategies and cryptocurrency index funds. That said, the platform’s real selling point is its portfolio rebalancing tool, which can automatically rebalance your portfolio by gradually buying and selling crypto assets according to your risk/asset allocation level.

Like several other options on this list of best crypto copy trading platforms, Shrimpy works with dozens of top exchanges and offers trading access to all of today’s largest, most popular cryptocurrencies. For everything it offers, Shrimpy is a powerful tool that’s pretty tough to beat.

• Crypto copy trade bots and tool are free to use

• Supports multiple cryptocurrencies and exchanges

5. Pionex – Best Platform for Traders on a Budget

With Pionex, you’ll have 16 free crypto copy trading bots to choose from, which can help you begin to see profits before you’ve even decided on your preferred trading strategy. You simply share your email, and you can begin using Pionex’s automated trading software to lock in profits from day one.

So, if you’re brand-new to the crypto trading game and are short on time (and even shorter on crypto or funds), definitely check out this platform.

• Hundreds of supported cryptocurrencies

• 16 built-in trading bots and strategies

• You’re unable to socialize with other platform members

12 Best Crypto Copy Trading Platforms in 2022 for New Traders

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards