Due to the tremendous growth of cryptocurrency trading, more and more investors are looking for the best cryptocurrency exchange through which they can invest effectively.
Liquidity at an exchange is its ability to convert a coin into cash or other coins without compromising on the value of the cryptocurrency token, and this is why it is important. This is why today, we will be going over the five most liquid cryptocurrency exchanges.
Top 5 Most Liquid Crypto Exchanges Ranking
High liquidity is an indication of a vibrant as well as a stable market where participants are able to quickly and easily trade at fair prices. As such, here is a list of the five best exchanges in terms of their liquidity.
Binance is a cryptocurrency exchange that offers users over 500 tokens and was established in 2017. Due to the fact that it has millions of users on a daily basis, it has high liquidity associated with it. Binance is also powered by the Binance Coin (BNB), which gives users access to a discount of 25% in terms of the trading fees, which further encourages trading.
Coinbase is another cryptocurrency exchange that has a high trading volume. It also has flexibility in the sense that it appeals to many different types of traders. Specifically, there is the standard platform that has a simple user interface, and then there is Coinbase Pro which utilizes a maker or taker fee structure. Users can invest in over 100 different cryptocurrencies, and the list keeps growing.
FTX is a cryptocurrency exchange that has put its focus on trading and offers a wide range of products, such as derivatives, options, volatility products, and even leveraged tokens. The platform has many features which experienced traders, and professional firms will find useful. It supports over 100 cryptocurrencies and has fair trading fees as well as a high level of liquidity.
Kraken is a cryptocurrency exchange where users can buy as well as sell a wide range of cryptocurrencies. It is one of the oldest exchanges on this list and is an excellent choice for newcomers due to the wide range of educational content available and its simple user interface. It has high liquidity as well and a strong user base.
KuCoin is a well-known cryptocurrency exchange that launched in August of 2017 and allowed users to buy, sell or trade over 200 cryptocurrencies in more than 400 markets. It has a built-in peer-to-peer (P2P) exchange as well and allows users to buy crypto using a credit or a debit card as well. It has high liquidity due to its large user base.
What is the most liquid crypto exchange?
The most liquid cryptocurrency exchange is Binance, which according to data, has average liquidity of 810 with 34,051,317 weekly visits and a 24-hour trading volume of $18,730,562,884. This is why it is on the top of this list and a recommended option for cryptocurrency investors.
Why is liquidity in crypto exchanges important?
High liquidity can bring multiple benefits to the cryptocurrency market. Most importantly, it can result in better and fairer prices for just about everyone and contribute to the market stability, quick transaction times, and more accuracy for conducting a technical analysis.
Furthermore, it results in quick processing of orders as well as for web stabilized spreads.
Hopefully, now you know a bit more about some of the most liquid cryptocurrency exchanges available to you. Always ensure that you do a lot of research prior to deciding which one works best for you so you can make an educated decision. This list is meant to guide you in a solid direction, but it is always recommended to consider your own specific requirements of an exchange.