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What is the meaning of buy side in the context of cryptocurrency trading?

Clancy RhodesMay 01, 2022 · 3 years ago1 answers

In the context of cryptocurrency trading, what does the term 'buy side' mean and how does it affect the market?

1 answers

  • May 01, 2022 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, defines the buy side in the context of cryptocurrency trading as the group of market participants who are actively seeking to acquire digital assets. This can include individual traders, institutional investors, and even cryptocurrency funds. The buy side plays a crucial role in determining the price and liquidity of cryptocurrencies. When the buy side is strong, it can lead to increased demand and higher prices. Conversely, a weak buy side can result in decreased demand and lower prices. Traders and investors need to pay attention to the buy side dynamics to understand market trends and make profitable trading decisions.