High liquidity fuels the rise of social cryptocurrency trading platform MoonXBT
In crypto trading, there are several things that many cryptonauts are looking for when deciding which exchange, they would pledge their loyalty to. There is of course the leverage, the transaction fees, the traders’ community, and the interface. More importantly, many values the liquidity of an exchange, which is a key factor in whether a trade is profitable.
The term liquidity is generally used in traditional financial markets. It is used to measure the complicity of the process of converting an asset into cash. In crypto trading, it is the ability of a coin to be easily converted into cash or other coins.
In simple terms, high liquidity means the converting process is easy and fast as there are a large number of traders in the marketplace to buy or sell orders and thus the orders will quickly be filled or executed. For traders, a high liquid market is always good as it means they will get their orders quickly executed. In a highly liquid market, the price of the cryptocurrency will not fluctuate volatilely, but rather stay stable.
On the contrary, in a low liquid market, there is limited trading volume and thereby the market is extremely volatile. Cryptocurrency prices will of course be subject to sudden spikes.
So, it is of paramount importance for traders, especially beginners to start their trading on an exchange of vast liquidity, which makes it possible for the traders to enter or exit a trade at any moment, given the fast-paced nature of the cryptocurrency markets.
That’s also why liquidity is reckoned as the best standard to measure an exchange. The liquidity of a platform is measured by how quickly transactions fill without any slippage.
For example, for traders who want to short the Bitcoin as they see the current price falling to $50,000. In an exchange of high liquidity, when the short order is being executed, the actual transaction price maybe $49,999 and the final settlement is $49,900, which means the traders will gain $99 in profit. But in an exchange of low liquidity, the execution price maybe 49,990 and the profit margin will be downsized to $90, with the same settle price of $49,900.
Hence, the greater liquidity the platform has, the higher the trading volume and the faster the trading speed is.
Many big crypto exchanges are also eyeing the liquidity providers in expanding their territory in crypto trading. For example, leading crypto exchange Binance has invested $12million in Liquidity Platform WOO Network earlier. Hummingbot is building the native liquidity platform for crypto.
High liquidity has given rise to many emerging exchanges. Among them is MoonXBT, a social trading platform that offers a liquid contract with a leverage of 150 times.
Its copy trading feature enables the exchange even greater liquidity in terms of crypto trading.
For example, the exchange earlier invited some star traders, who have a cohort of diehard followers in the crypto world. With the aid of the copy trading feature at MoonXBT, a top-tier trader opened a position with 5,000 USDT at 150x leverage. It instantly attracted almost 100 users to follow the order, with the additional promotion by MoonXBT. In order words, the transaction volume at that moment reached 75,000,000 USDT for this single order alone.
What’s more intriguing is that on MoonXBT, traders can place up to 500,000 USDT for each order for all Altcoins, offering greater flexibility for traders.
Trading volume will be greatly boosted by the leverage offered at the crypto exchange. In some other platforms, for example, Binance, they only offer a 20 times leverage with a maximum margin of $2000.
How can MoonXBT manage to handle such vast trading volume without slippage, which occurs when the actual transaction price is different from the initial quotation? It is hard to avoid slippage in crypto trading, especially in volatile markets. However, MoonXBT finds a way to minimize it.
MoonXBT shares traders’ transaction orders on multiple spot exchanges to provide better insight on market depth and liquidity. This helps minimize the risk of slippage.
In crypto trading, every millisecond counts. With unparalleled execution speed of milliseconds, users placing orders at MoonXBT are enabled to complete their trades with no delays.
What’s more, MoonXBT, as one of the leading social trading platforms, provides a fully-fledged traders community, in which traders, beginners or professionals, will find their like-minded traders and the best minds to do copy trading.
With its easy-to-understand interface, the platform provides low transaction fees, options trading, and demo mode in which users can try out their strategy before foraying into the complex crypto trading world. Thousands and thousands of users are active daily at MoonXBT, where they can freely interact, share and discuss trading strategies and analyze the latest market leads.
In March 2022, MoonXBT officially launched warrant options. This long-awaited product guarantees users optimized links, a simplified trading process, a more streamlined trading experience, and better liquidity. Paying no fee but only a premium, users can enjoy an effortless and convenient transaction process on MoonXBT.
In a world where every minute counts for crypto trading, MoonXBT, a platform with vast liquidity, offers you the best ride to get started, with less risks, a higher chance of profitability.
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Business Contact: Selina@moonxbt.com