Why is liquidity important in crypto trading?

Liquidity can also be used when weighing exchanges that enable trades between fiat and crypto to be completed instantly without price slippage. The levels of liquidity will often depend on how many users that particular platform has. In a perfectly competitive market, liquidity will erode the ability to charge a discounted price or a premium.

How do you measure cryptocurrency liquidity?

In the measurement of cryptocurrency liquidity, you will want to look at the order books of all of the exchanges where that asset can be traded, in addition to other variables, such as the acceptance of the crypto asset via payment processors. What Cryptocurrency Exchanges Offer Most Liquidity?

What is CoinMarketCap's liquidity score?

CoinMarketCap’s Liquidity Score for every single market pair is based on how much slippage a trader would incur on a range of orders if the trades were executed immediately. With the majority of our user base in mind, orders between $100 and $10,000 will be prioritized.

What is the global crypto market cap?

The global crypto market cap is $1.54T, a 2.85% increase over the last day.