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

Crypto

What are the key differences between crypto credit cards and crypto debit cards? Find out in detail in this article. 

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As you approach your available crypto credit and debit card options, it’s important to know the crucial differences between the two financial products. Each type of card will help modern traders like you live flexibly, but they are not identical tools. A rich understanding of crypto cards will help you decide whether to add any of today’s 

Crypto credit cards are a stellar type of financial tool that turns the idea of traditional credit cards on its ear. Most importantly, crypto credit cards give rewards in cryptocurrency.

Suppose you like to earn rewards from credit cards. If you are comfortable with doing that in a sound manner — one that does not put dents in your ability to enjoy a nice credit line — you may find crypto credit cards quite appealing.

Crypto credit cards have grown in popularity as everyday consumers look for ways to get into cryptocurrency.

Crucially, crypto credit cards are quite different from typical credit cards. They let you pay using your credit line in fiat currency and earn rewards in popular cryptocurrencies.

Naturally, like all classes of financial products, some crypto credit cards are better than others. You can find some that, alongside your crypto rewards, also give you cash back and other credit card rewards that you would find with traditional credit cards.

Of course, when you choose crypto credit cards issued on the Visa or Mastercard payment processing network, you receive the many features, benefits and protections that come with those brands.

This space will continue to grow as cryptocurrencies evolve, and it will be interesting to see the level of value credit companies offer traders in the coming years.

If you’re still on the fence about whether to get a crypto credit card, you might want to take a look at all the good reasons to bring one or two into your life.

Looking for a way to earn some free crypto? Well, applying for a crypto credit card is one way to do so. When you pay for things with a crypto credit card, you’ll be rewarded with crypto rewards such as 

 or any other cryptocurrency the card is tied to. Most crypto cards offer a fixed rate on purchases, but you can also earn bonus rewards for certain purchases, just like a normal credit card.

Assume the scenario where you have a crypto credit card that earns you 2% crypto rewards on groceries and you have chosen to pay with Bitcoin. Making a $100 purchase at a supermarket will earn you $2 worth of Bitcoin. And the best part is, you won’t have to worry about paying exchange fees just for your rewards to be turned into cryptocurrency.

Convenient Way to Begin Your Crypto Journey

If you are a crypto beginner, then you may be wondering how to even buy your first coin. Crypto credit cards can be the easiest answer. Essentially, crypto credit cards pay you cryptocurrency, incrementally, when you shop using your card.

Most methods of acquiring crypto require multiple steps. You have to first pick a reliable and secure exchange. Next, you will need to create and verify your account. Of course, you will then have to transfer fiat currency into the account to place an order. Some exchanges reliably deliver instant deposits after you place a purchase order. Others can make you wait hours or days. Once you’ve successfully made the purchase, you will then have to select a trustworthy crypto wallet to store your assets. With so many steps involved, it can be quite overwhelming for someone who is just starting out in crypto. 

A good crypto credit card will let you skip some of those steps. Subsequently, you’ll save time on obtaining your first crypto coins. Remember, crypto credit cards are a 21st-century improvement on credit card rewards programs. So, when you use one, you aren’t arduously buying crypto. You’re conveniently piling it up by making normal purchases and paying off your credit card balance every month.

Of course, while there may be great perks to having a crypto credit card, there are also some downsides to having one. 

Crypto Credit Cards Have a Limitation Problem

As crypto credit cards are still relatively new financial tools, they have a couple of limits you should be aware of.

First, you should not not expect to see quite as many cards offering crypto rewards as you'll find with traditional reward programs. Second, do not go into a crypto credit card deal expecting to select from the thousands of cryptocurrencies via its rewards program. Most crypto credit cards' rewards programs only let you pick from several of the most popular coins.

Of course, each of these limits will become less significant as crypto credit cards gain a bigger footprint in the marketplace.

Volatility Is an Issue for Crypto Credit Cards

 in cryptocurrency is traded daily worldwide. That volume allows plenty of opportunity for prices to rise and plummet.

Due to this volatility, you may feel uncomfortable about the value of your program's rewards. With traditional credit cards that offer points, for example, you know that your points usually hold their value until you use them or they expire. On the other hand, popularly traded crypto coins can lose or gain value constantly.

This disadvantage of crypto credit cards is not likely to change because volatility is simply a feature of the crypto trading marketplace. As you grow comfortable with the potential ups and downs of cryptocurrency value, this aspect of crypto credit cards should become less important.

Crypto debit cards are a convenient method of paying for goods and services with cryptocurrency. While other payment formats require a time-consuming conversion into fiat currency, a crypto debit card enables instant transactions worldwide.

With crypto debit cards, you are not earning cryptocurrency; you are spending it.

This important tool needed to come into existence because it was simply too difficult to make common purchases in crypto. As you likely know, most vendors just don’t accept crypto payments. That is a hassle, but crypto debit cards largely solve this problem.

Critically, this innovation lets you instantly convert your chosen cryptocurrency into fiat currency for electronic payments. Still, you should not view crypto debit cards as nearly identical to a traditional debit card attached to a checking account.

Crypto debit cards are more like prepaid debit cards. In short, you have to pre-load crypto debit cards with cryptocurrency. Clearly, these cards provide flexibility, but you need to be aware of potential drawbacks.

Watching new, agile providers expand the marketplace of crypto debit cards will be fun as crypto and web3 grow.

Still unsure of whether to get a crypto debit card? Well, there are certainly worthwhile reasons to consider one. 

Most Versatile Tool for Turning Crypto Into Fiat Currency for Payments

You gain on-demand access to the value stored in electronic currency through crypto debit cards. Now, with crypto debit cards, you can actually spend your stateless money on your daily purchases. You see, a top-notch, secure crypto debit card fully optimizes cryptocurrency's portability for you. When necessary, you can convert your crypto into different fiat currencies on transactions that occur minutes apart, too.

Crypto Debit Cards Worth Your Consideration Offer Additional Features

Some crypto debit cards are vanilla, and a select few are flavored with delightful features. You should seek the latter as you weigh appropriate crypto debit cards.

Top-shelf features you can find among crypto debit cards include account security, rewards programs and a customer-care level that makes you feel like your happiness is a large corporation's only concern. Some of the rewards programs include unique offers and special experiences.

Like all things, crypto debit cards feature disadvantages, too.

Only a Handful of Crypto Debit Cards May Be Worth Your Time

While basic crypto debit cards are commonplace, those that are actually worth your consideration are few as of early 2023. If you’re looking for extensive features and flexibility, you might be disappointed to find that some offerings in this space simply are not there yet.

Some Crypto Debit Cards Have Stark Security Issues

In addition to features and flexibility, you want highly reliable security. After all, you don't want to lose access to your crypto balance due to a breach. It can happen. Certainly, it 

Don't leave this up to fate, and don't assume that you have no options. Choose a crypto debit card from an expert developer of diverse financial tools for today's marketplace.

Crypto Credit Cards vs. Crypto Debit Cards

Now that we’ve gone through the types of crypto cards available, let’s take a look at the differences between crypto credit cards and crypto debit cards.

Whether you opt for a crypto credit card or a crypto debit card, your card will feature the logo of Visa or Mastercard. These are our global economy's two biggest payment processors, the only two with reach exceeding 200 countries and territories.

As such, you can reasonably expect to use either type of crypto card, whether you prefer credit or debit, anywhere you travel. Naturally, any crypto card with a Visa or Mastercard seal on it will also let you earn crypto rewards or pay with crypto when you shop with millions of online merchants, too.

Excellent Rewards Programs Available for Each Type of Crypto Card

While crypto card products make up a growing sector, you can already find rewards programs that deserve your attention among crypto credit cards 

 crypto debit cards. More rewards are available than crypto for your online wallet. These are loyalty programs that let you amass points and decide where to apply them.

Importantly, crypto debit cards with rewards programs are offered only by a few companies while crypto credit cards with rewards programs are offered by all companies that produce them.

Crypto Credit Cards Pay Using Fiat Currency, but Crypto Debit Cards Pay Directly With Crypto

Since each type of crypto card is used to pay for items through Visa or Mastercard, it's easy to assume that they spend the same kind of currency. In fact, crypto credit cards only spend fiat currency through your credit line. Meanwhile, crypto debit cards spend cryptocurrency that is instantly converted into the specific fiat currency necessary to complete a given transaction.

 between these two concepts. With crypto credit cards, you 

 crypto when you make fiat-backed credit purchases. Regarding crypto debit cards, you 

 from the crypto resources you attach to your card.

Only Crypto Debit Cards Are Available Without Credit Checks

If your current credit score makes you feel uneasy about even reading this sentence, you may want to select a crypto debit card over a crypto credit card. Earning a popular cryptocurrency through your credit card purchases sounds attractive, but that opportunity is only available to consumers who can meet a card issuer's credit check.

Please don't feel bad if your credit situation is awkward right now. Just focus on your ideal crypto card options. Credit ratings can be mended.

Meanwhile, you can enjoy a dynamic crypto debit card with a rewards program that will make you forget all about crypto credit cards. The right crypto debit card for your situation exists, and crypto debit cards never force you to hassle with credit checks.

Which Type of Crypto Card Should You Get?

As you weigh the advantages and disadvantages attached to this exploding financial-tool sector, you may feel unsure which way to go. Do you want to earn crypto rewards? Would you rather have instant access to easily spendable crypto?

Your answers to these questions will likely change as you grow through your trading journey.

Regardless, the best crypto card for beginners and experienced traders alike comes from Bybit. The 

 was launched in 2023 and delivers the richest set of features you will find among crypto debit cards. Highlights of Bybit’s exceptional crypto debit card include:

Note the outstanding security and the opportunity to earn loyalty rewards as you use crypto on your everyday purchases with the Bybit Card. Bybit created this modern spending tool with the goal to outshine other crypto debit cards.

 Plainly, it is a full-service provider of crypto financial products, which lets you confidently smooth some of the disadvantages of most crypto debit cards, making their entrant into the category unique and universally ideal.

Crypto cards offer attractive benefits. As an update of traditional credit cards, crypto credit cards reward you in cryptocurrency when you make purchases. Alternatively, crypto debit cards let you make your purchases in your chosen crypto, with some restrictions. Each type of crypto card comes with pros and cons, as do all financial tools. Now that you are fully informed about crypto credit cards and debit cards, you’re empowered to choose your ideal crypto card. If you’re looking to try out a crypto debit card, try the 

Crypto Credit Cards vs. Crypto Debit Cards: The Key Differences

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards