Liquidity Risks in Crypto Markets: Mitigation Strategies

Liquidity Risks in Crypto Markets: Mitigation Strategies

<h1>Liquidity Risks in Crypto Markets: Mitigation Strategies</h1> <h2>Pain Points in Cryptocurrency Trading</h2> <p>The volatility of digital assets exacerbates <strong>liquidity risks in crypto markets</strong>, particularly during black swan events. A 2023 case study by Chainalysis revealed that decentralized exchanges (DEXs) experienced 47% wider bid–ask spreads during the FTX collapse compared to centralized platforms. Retail traders often…