Which cryptocurrencies tend to have larger bid/ask sizes and why?

3 answers

• Mar 18, 2022 · 3 years ago
  Cryptocurrencies with larger market capitalization, such as Bitcoin and Ethereum, tend to have larger bid/ask sizes. This is because these cryptocurrencies are more widely traded and have a larger number of buyers and sellers, resulting in higher liquidity. Higher liquidity means that there are more orders to buy and sell at different price levels, which leads to larger bid/ask sizes. Additionally, cryptocurrencies that are listed on multiple exchanges also tend to have larger bid/ask sizes as they attract a larger pool of traders and investors.
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• Mar 18, 2022 · 3 years ago
  When it comes to bid/ask sizes in cryptocurrencies, it's all about supply and demand. Cryptocurrencies that have a high demand and limited supply are more likely to have larger bid/ask sizes. This is because there are more buyers competing for a limited number of coins, which drives up the bid/ask sizes. On the other hand, cryptocurrencies with low demand and a large supply are likely to have smaller bid/ask sizes as there are fewer buyers and sellers in the market.
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• Mar 18, 2022 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, has observed that cryptocurrencies with active communities and strong investor interest tend to have larger bid/ask sizes. This is because active communities attract more traders and investors, resulting in higher liquidity and larger bid/ask sizes. Additionally, cryptocurrencies that have a clear use case and strong fundamentals are also more likely to have larger bid/ask sizes as they attract long-term investors who are willing to hold onto their coins, leading to less frequent buying and selling.
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