Why basis points matter?
Common mistakes when trading in cryptocurrency markets. Introduction to the order execution costs and true liquidity.
Uninformed trades are primarily initiated by retail investors or by financial institutions that either execute retail orders or hedge their crypto exposure to retail buyers/sellers
Slippage is of low importance for uninformed traders and may be irrelevant to the order execution strategy
Limit orders don’t guarantee execution and may involve additional market risk as well as hidden losses
Market impact worsens final execution price when you use limit orders or a series of market orders
Liquidity aggregators can be a powerful solution for uninformed traders as they tend to offer better exchange rates and exclude non-existent liquidity from fraudulent crypto exchanges
The internalisation of the client trading flow reduces market impact and may improve the order execution price