Crypto Payments and Low-Liquidity Trading Pairs: What Startups Need to Know
Low-liquidity trading pairs can be a nightmare for crypto payments at startups. A recent episode on Binance, when Bitcoin’s price dropped to $24,000, highlights the risk of using trading pairs with thin order books. This post digs into how low liquidity impacts crypto payments and offers some strategies for startups to protect their transactions.
What Are Low-Liquidity Trading Pairs?
Low-liquidity trading pairs have thin order books, which can cause wild price swings and slippage. Startups that accept payments in cryptocurrencies linked to these pairs put themselves at risk of volatile price movements. Imagine receiving a payment in a low-liquidity token, only to find out that its value has tanked by the time you convert it to fiat or a…
