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What Metrics Are Used to Measure the Liquidity of a Crypto Asset?

Bid-ask spread, order book depth, trading volume, and benchmark slippage are the primary metrics.
Greeks.Live31.10.25

What Metrics Are Used to Measure the Liquidity of a Crypto Asset?

Key metrics for measuring crypto liquidity include the bid-ask spread, which indicates the cost of immediate execution. Another is the order book depth, which shows the volume of orders at various price levels.

Trading volume over a period is also crucial. The slippage experienced by a benchmark order size is a practical measure.

Low values for spread and high values for depth and volume indicate high liquidity.

How Can a Trader Use the ‘Market Depth’ Chart in Conjunction with the Bid-Ask Spread to Assess Liquidity?
Define the Term ‘Bid-Ask Spread’ and Its Relevance to Stop-Limit Placement
How Do Transaction Fees Compound the Risk Introduced by the Bid-Ask Spread?
How Does a ‘Whale’ Order Impact the Apparent Liquidity of an Order Book?

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