Liquidity
Cryptocurrency and Bitcoin
Liquidity
Cryptocurrency prices can change quickly. To ensure you can maximize profits, you need to move in and out of the market quickly. At Kraken, our deep liquidity ensures trade execution at the price you want -- with spreads as tight as 1 pip.
Short for "point in percentage", a pip is a very small measure
of change in a currency pair.
Liquidity refers to how easily an asset can be bought or sold at a stable price on a given market. The quicker you can sell off an asset as close to your asking price as possible, the more liquid an exchange is considered to be.
What drives Kraken liquidity
How liquid is bitcoin? It depends entirely on which exchange you’re trading on. More market makers on a given exchange mean assets will be traded at higher volume, which equates to more liquidity. Kraken is the largest exchange by euro volume in the world so we are among the top exchanges by bitcoin liquidity.
Aside from being the top exchange for bitcoin liquidity, we’re consistently among the top exchanges by volume for all of the assets we list. With thousands of global clients selling and buying cryptocurrency every day, it's that much more likely that you'll get the best price for whichever token you’re looking to trade.
Trading volume isn’t the only thing that affects cryptocurrency liquidity. Lower commissions can incentivize market makers to open more positions. At Kraken, our maker fees are some of the lowest in the industry - starting at 0.16% and going as low as 0.00%! Check out our complete fee schedule to learn more.
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