What is liquidity in crypto? Why it changes the price you get
By SendPay Business · · 2 min read
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Liquidity is how easily a coin can be bought or sold without moving its price much. A coin with lots of buyers and sellers is liquid; one with few is not, and trading it can cost more than the price on the screen suggests.
How to see liquidity
The order book shows the buy and sell orders waiting at each price. A deep book, with large orders close to the current price, means good liquidity. The spread, the gap between the best buy and best sell price, is usually small when liquidity is good.
Why low liquidity costs you
When there are few orders, a large trade eats through several price levels, so the average price you get is worse than the one you saw. This is called slippage. Wide spreads also mean you lose more the moment you buy.
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Questions people ask
What price would a market order get?
See how an order fills level by level and what slippage it causes.
Order book calculator →What did slippage cost me?
Compare the price you expected with the price you got.
Slippage calculator →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.