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

Trading

Find out more about the different crypto trading fees that exist and discover exactly which exchange is the best for your trading needs.

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Part 1: What Are Crypto Trading Fees & Why Do We Need to Pay Them?

Crypto trading fees are an intrinsic part of cryptocurrency exchanges. The fees are often paid to receive various kinds of trading and investment services on the exchange. The following guide will help you understand how these charges impact your bottom line.

Crypto trading fees are collected by a crypto exchange when a user trades crypto, completes a transaction or invests in a crypto-related financial instrument.

Depending on the service, crypto platforms charge different kinds of fees. You can often view the fee structure on the 

 page published by the particular crypto exchange.

For instance, buying and selling a crypto coin incurs fees which can range between 0.05% and 0.25% of the transaction volume. Similarly, each time you withdraw a coin, you may need to pay a crypto withdrawal fee for transferring the coin to another online wallet. If you're an active investor who participates in different types of lucrative investment programs, you may be asked to pay investment fees.

To attract new customers, crypto exchanges typically run promotions so that new account holders can receive discounts on standard fees. For example, new users may receive a sign-up bonus when they trade a certain amount, which may offset their trading fees. Similarly, existing customers can enjoy attractive discounts by trading more, thus climbing up the various tiers reserved for loyal customers.

When you open an account on a crypto exchange, you're likely charged the standard retail fee, which is higher as compared to VIP tiers. Therefore, becoming a VIP member can save you a lot on typical crypto trading fees.

Almost every crypto exchange offers some kind of VIP program. Each one usually includes multiple VIP levels. However, the conditions to join can differ from platform to platform.

Generally, the most popular approach to becoming a VIP is to execute a minimum amount of crypto trading within 30 days. The more you trade, the higher the VIP level. For example, non-VIP members usually pay a 0.10% fee on spot crypto transactions compared to VIPs, who pay less than half that amount.

Trading a minimum amount of crypto is just one way to achieve VIP status. Depending on the crypto exchange, there are other methods as well. With Bybit, you can become a VIP in multiple ways. For instance, you can reach 

 by keeping more than $50,000 in your account. As soon as you meet this requirement, you’ll automatically be upgraded to VIP 1 or higher, based on your account balance or trading volume, in one to two business days. 

Bybit is also one of the few crypto trading platforms that allow users to achieve VIP status without waiting for the 30-day transition period. If you're an active trader on another crypto exchange, you can either 

 or talk to a Bybit customer support rep to bypass the 30-day rule. 

Recently, crypto exchanges have introduced several new investment products exclusive to the crypto ecosystem. This means that you’ll likely encounter plenty of DeFi projects with their own fee structures. To make things a little easier, we've compiled a brief guide to the types of crypto trading fees you're likely to come across.

 is vital to perpetual contracts. If you trade 

, you need to pay a funding fee to other traders, or receive it from them. In most cases, the funding fee is calculated every eight hours, which means that you can either pay or receive the fee three times during the entire day.

At the time of funding, if the perpetual future price is lower than the actual spot price (of the underlying asset), short position holders pay the funding fees to long position holders, and vice versa.

Just to give you some idea, the average funding rate for BTC is usually less than 0.01% per funding rate interval. This rate can differ across different crypto platforms. For example, the BTC funding rate on Bybit is generally a fraction of funding rates on other exchanges.

Depending on how you intend to use the funding fee, you can receive regular funding fees from other traders, use the funding rate for arbitrage, or treat it as just another fee you need to pay to trade perpetual futures contracts.

If you’re wondering what transaction fees are in crypto, remember that most crypto exchanges use the 

, instead of charging fixed transaction fees. These maker and taker fees are the fees that you pay for opening and closing your positions.

In simpler terms, you're charged a maker fee for every 

. Usually, the maker fee is less than the taker fee, because when you place a limit order on the crypto exchange, you automatically become a liquidity provider. Since limit orders aren’t executed immediately, they sit in the order book, which improves liquidity.

In contrast, the taker fee is usually higher than the maker fee. Generally, you pay a taker fee on all market orders. Since trade execution on the market order is instant, your order doesn't sit in the order book, which takes away liquidity. In this case, therefore, you're charged a taker fee because you're removing liquidity from the exchange.

 on all spot trading pairs, valid until Jan. 3, 2023. Users can enjoy trading with some of the newest tools on our Spot platform 

instead of paying the usual 0.10% maker and taker fees.

To promote perpetual and futures trading activities, Bybit offers large discounts on both maker and taker fees. The maker fee on futures trading is only 0.02% on standard accounts. 

Some exchanges use spread fees instead of the maker-taker fee model. The spread fee is determined by calculating the difference between the existing market price of a cryptocurrency and the amount the user pays to buy or sell it.

In most cases, spread fees are much higher than typical maker-taker fees. For instance, the average spread fee on cryptocurrency sales and purchases can be 0.5% on some exchanges, which is five times the fees charged by a typical crypto exchange using the maker-taker model.

The term "gas fee" is associated with transactions on the 

 blockchain network. While other blockchain networks simply call this a "transaction fee" or "miner fee," every such transaction on Ethereum is known as a “

Almost all actions on the Ethereum blockchain require gas. If you transfer ETH, or Ether, to another wallet, you need to pay a gas fee because the Ethereum blockchain is involved in the process.

Transferring ETH isn't expensive, and you don't need to pay a high gas fee unless the network is congested. However,

 and executing smart contracts on the Ethereum blockchain 

. In this case, the gas fee is much higher as compared to rival networks.

So, why do people pay a high gas fee to Ethereum? The answer is that it's easier to create smart contracts and build 

Crypto users need to pay withdrawal and deposit fees when moving cryptocurrency from one wallet address to another. The terms “withdrawal and deposit” may seem self-explanatory, but be sure never to ignore these fees. Exchanges may have different fees, and not every exchange offers the cheapest protocol to transfer assets between different wallets. In addition, there may be limitations regarding the minimum amount that you can transfer to take advantage of the lowest rates.

If you're an active trader who has multiple cryptos in your portfolio, your choice of transfer protocol (as well as potential limitations on withdrawals) can substantially impact the final price.

 as a way for users to earn passive income. Just as with a traditional savings account, you can stake your crypto or withdraw it at any time, although in some cases, you may need to pledge your coin for a certain duration before you can unlock it.

The staking reward for crypto coins is normally calculated via 

, depending upon the platform. Staking is popular among crypto traders because it tends to offer a much higher yield than investors can find at traditional financial institutions. For instance, staking USDT and other stablecoins on a crypto exchange is a great way to earn passive income without the risk of price fluctuations associated with volatile crypto markets. Oftentimes, the exchange will take a small percentage of your staking rewards, which is referred to as a staking fee.

A liquidation fee is charged when an investor is unable to fulfill the margin requirements for a leveraged position. In this case, the system automatically closes the open position and charges a liquidation fee.

When trading spots, you can't go short. However, certain crypto exchanges will let you trade with leverage by borrowing from other users. If you use this strategy, the system will automatically borrow from those lenders, place a trade and charge you spot margin trading fees.

You’ll encounter leverage fees when trading 

, instruments that don't have a typical settlement date. This also means that there’s no need to worry about margins and liquidation risks. Here are some 

You’re assessed copy trading fees when you opt to follow the trades of another investor. Most crypto platforms have some sort of 

 program, which lets users automatically mirror and execute the trades of veteran traders. Some exchanges don't charge a copy trading fee because the lead trader is paid a percentage of the follower’s profits.

A crypto loan fee is the regular interest payment that you pay to lenders. This is usually much lower than the fee for a traditional loan. Most crypto exchanges facilitate the borrowing and lending of crypto loans. Depending on the type of loan, this can be borrowing coins, cash or a physical asset, such as real estate.

NFT fees often involve a minting fee and a listing fee. A minting fee is usually incurred when you attempt to mint a new NFT. Since this requires miners to carry out resource-intensive computations, you’re required to pay a small fee to compensate them for helping you to record the transaction on the blockchain and complete the minting process. 

As its name suggests, a listing fee is incurred when you list an NFT on a platform. You may sometimes also be charged a fixed platform fee upon the sale of your NFT. 

Why Do We Need to Pay These Crypto Trading Fees?

First, it's important to understand that every financial institution, including banks, charges some sort of fee. More importantly, many of these fees are paid to cryptocurrency miners, whose vital work helps process transactions and secure blockchain networks.

Part 2: How to Choose the Best Crypto Exchange With the Lowest Crypto Trading Fees

If you're an active trader, keep an eye on crypto trading fees. They can quickly derail your profitable strategy. This topic is particularly important to swing traders and speculators, who love to ride market trends.

The following crypto fees comparison guide analyzes the trading fees charged by some of the largest crypto exchanges around the world. After reading it, you can easily skim through the trading fee schedule of most crypto exchanges.

Best Overall Crypto Exchanges With Low Trading Fees

The lack of universal guidelines often makes it difficult for traders to understand and compare trading fees across different crypto platforms. Fortunately, the overall structure of crypto trading fees is quite similar. Learning a few basic concepts will help you compare crypto exchanges without using advanced tools and filters.

, you'll notice that it mainly displays spot trading and futures trading fees. Under most circumstances, spot trading fees are higher than futures trading fees. These charges are always listed as maker fees and taker fees. For the sake of simplicity, the maker fee is charged to all limit orders and the taker fee is charged to all market orders, irrespective of whether you're opening a trade or closing your position.

The fee that you pay is also determined by your level on a trading exchange. Almost everyone starts at the standard level unless you hold a certain number of cryptos in your wallet.

Pay attention to the first level, because this is probably where you’ll begin. As you climb up the ladder, the fee changes accordingly. Here is how it's normally displayed:

It's easy to climb up the levels and pay less. You can do this by:

Depending on the crypto exchange, the system will automatically upgrade your account to a particular level. On most platforms, VIP status starts from Level 2, which means that you can enjoy privileged services in addition to the lower trading fee.

Now that you have some idea of the basic fee structure, here's how to interpret a typical crypto trading fees table:

For the convenience of readers, we've displayed only the standard account and first three levels of the VIP account in the charts below, making it easier to understand and compare the fees.

Among the largest crypto exchanges, Bybit offers one of the lowest crypto trading fees. The platform is particularly known for its variety of futures and derivatives instruments. When trading futures, the maker fee and taker fee are only 0.02% and 0.055%, respectively.

 on the Bybit exchange displays the taker fee, followed by the maker fee. Below, we've displayed it as the maker/taker model as shown on most crypto exchanges.

Crypto Trading Fees: Comparing Crypto Fees Across Exchanges

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Crypto Trading Fees: Comparing Crypto Fees Across Exchanges

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