Liquidity In The Crypto Market #003

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Hello great minds,

It is a wonderful opportunity to come before you all today again to discuss on an issue of great importance in the cryptospace.

I trust you are doing perfectly well and you are enjoying your activities in the community, as we jointly promote steemit on various social media platform, more especially on twitter.

And it is with a happy mind I am humbly continuing this interesting topic on liquidity in the cryptomarket.

We have explained very well what liquidity is in the cryptomarket, and we understand it to be the ease with which market participants interact with one another.

In our last discussion on liquidity, we learnt some of it's Importance and we shall continue today.

Please continue with me as we examine one more Importance of liquidity in the cryptomarket, and that is the easing of buying and selling.

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HOW LIQUIDITY AIDS BUYING IN THE CRYPTOMARKET

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Liquidity aids buying and selling in the cryptomarket but today, we shall be examining how liquidity aids buying in the cryptomarket, please tag along.

• REDUCED PRICE IMPACT:

One way in which liquidity aids buying in the cryptomarket is that it helps to reduce price impact in the market.

It is no news that when the buy order in the cryptomarket becomes more than the sell order, there is always a surge in price of that commodity.

With a high liquidity in the market, a high buy order won't be able to increase the price of the goods in the market.

This means that a high liquidity helps to reduce the effect of a high buy order on the market.

• QUICK EXECUTION:

Quick execution is another Importance of high liquidity to buyers in the cryptomarket.

When the market is liquid, there is often a quick execution of market buy order, as there are so many sellers willing to sell at the buyer's desired price.

With a highly liquid market, the buyer can enter and exit an order at desired prices, thus making his trading experiences very interesting.

• DIVERSE ORDER TYPES:

A liquid market allows for the use of different order types.

In a liquid market, you can place a trade using market order and this implies that you buy at the current market price as at when the trade was placed.

And you can also place a limit order which implies that you buy when the market gets to a desired price.

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CONCLUSION

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We have examined Interesting ways in which a liquid market aids buying in the cryptospace.

In our next discussion on liquidity, we shall unveil more facts.