What are the factors that affect the spread in cryptocurrency trading?

1 answers

• Jan 27, 2022 · 3 years ago
  At BYDFi, we believe that the factors influencing the spread in cryptocurrency trading are similar to those in traditional financial markets. Market liquidity, trading volume, and market volatility are key factors that affect the spread. Additionally, the presence of market makers and the efficiency of the exchange's matching engine can also impact the spread. It's important for traders to consider these factors when executing trades and to choose exchanges that offer competitive spreads and high liquidity. By understanding the factors that affect the spread, traders can make more informed decisions and potentially improve their trading outcomes.
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