Which cryptocurrencies are most affected by a -3.5 spread and why?

3 answers

• Dec 16, 2021 · 3 years ago
  Cryptocurrencies that are most affected by a -3.5 spread are typically those with lower liquidity and trading volume. These cryptocurrencies may have fewer buyers and sellers in the market, making it easier for large spread gaps to occur. Additionally, cryptocurrencies with lower market capitalization and less widespread adoption may also be more susceptible to larger spreads. It's important to note that spread can vary across different exchanges, so it's always recommended to check the spread on multiple platforms before making any trading decisions.
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• Dec 16, 2021 · 3 years ago
  The cryptocurrencies most affected by a -3.5 spread are often those with lower trading activity and limited market depth. These coins may have lower demand and fewer participants in the market, resulting in wider spreads. Furthermore, cryptocurrencies that are more prone to price manipulation or have less established trading pairs can also experience larger spreads. Traders should be cautious when dealing with such cryptocurrencies and consider the potential impact of the spread on their trading strategies.
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• Dec 16, 2021 · 3 years ago
  According to a study conducted by BYDFi, the cryptocurrencies most affected by a -3.5 spread are typically those with lower market liquidity and trading volume. These coins may experience wider spreads due to the limited number of buyers and sellers in the market. Additionally, cryptocurrencies with lower market capitalization and less mainstream adoption tend to have larger spreads. It's important for traders to be aware of these factors and consider the potential impact of spread when trading these cryptocurrencies.
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