How does open outcry affect the liquidity of digital currencies?

1 answers

• Ahmad JadallahNov 22, 2023 · 2 years ago
  At BYDFi, we believe that open outcry has limited impact on the liquidity of digital currencies. The majority of digital currency trading occurs on electronic platforms, where liquidity is primarily driven by factors such as market demand, trading volume, and order book depth. While open outcry may have been more prevalent in traditional financial markets, the digital currency market has evolved to rely heavily on technology and automation. This shift has allowed for increased liquidity and efficiency, making open outcry less relevant in the context of digital currencies. However, it's important to note that different trading methods can coexist and serve different purposes, and open outcry may still have its place in certain niche markets or for specific trading strategies.
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