Assessing Liquidity on MEXC Markets
Assessing Liquidity on MEXC Markets
MEXC is a cryptocurrency exchange that offers spot trading, derivatives trading, and various other digital asset services. This overview aims to provide a beginner-friendly introduction to assessing its markets, focusing particularly on liquidity and core functionalities.
Core Features of MEXC
MEXC provides a comprehensive platform catering to both novice and experienced traders. Key features include:
- Spot trading for direct asset exchange.
- Derivatives trading, primarily futures.
- A range of staking and earning products.
- Support for numerous trading pairs.
To begin trading, users must first register. You can Register here.
Fees Structure
Trading fees on MEXC are generally competitive, typically structured on a maker/taker model based on the user's 30-day trading volume and the amount of the exchange's native token (if applicable) held.
- **Spot Trading Fees:** Generally low, often starting around 0.1% for both makers and takers, though this can be reduced for high-volume traders.
- **Futures Trading Fees:** Often lower than spot fees, with distinct maker and taker rates that vary based on leverage used.
Supported Assets
MEXC supports a vast array of cryptocurrencies, often listing new and smaller-cap tokens relatively quickly compared to some larger exchanges. This breadth of assets contributes significantly to market depth across various pairs.
Spot and Futures Trading Basics
MEXC differentiates between its two primary trading environments:
Spot Market
The Spot market involves the direct buying and selling of underlying cryptocurrencies. When you trade BTC/USDT on the spot market, you are exchanging one asset for another immediately at the prevailing market price or a price you specify.
Futures Market
The derivatives market allows users to trade contracts based on the future price movements of an asset without owning the underlying asset itself. MEXC offers perpetual futures contracts. Understanding these markets requires familiarity with concepts like margin, leverage, and liquidation. For essential background, review Navigating Futures Markets: Key Terms and Strategies for New Traders.
Order Types
Understanding order types is crucial for effective trading and managing slippage, especially when assessing liquidity.
- Limit order: An order to buy or sell at a specified price or better.
- Market order: An order to buy or sell immediately at the best available current price.
- Stop orders (e.g., Stop Limit, Stop Market) are used for risk management. Users should - Discover how to set effective stop-loss orders to limit losses and manage risk in high-leverage futures markets when trading with leverage.
Assessing Liquidity and Markets
Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. High liquidity is vital for minimizing trading costs and slippage.
On MEXC, liquidity can be assessed by examining the depth of the Order book for a specific trading pair. A deep order book means there are many buy and sell orders clustered closely around the current market price.
The following table illustrates a simplified view of market depth for a hypothetical asset pair:
| Side | Price (USDT) | Amount (BTC) |
|---|---|---|
| Sell | 30001.00 | 1.5 |
| Sell | 30000.50 | 4.2 |
| Buy | 29999.00 | 5.0 |
| Buy | 29985.00 | 10.1 |
The gap between the highest bid (Buy) and the lowest ask (Sell) is known as the spread. A narrower spread generally indicates better liquidity. For futures, liquidity is critical, as discussed in - The Role of Liquidity in Futures Trading Explained.
Security Practices
MEXC employs standard industry security measures, including:
- Two-Factor Authentication (2FA).
- Cold storage for the majority of user assets.
- Encryption for sensitive data transmission.
Users are strongly encouraged to enable 2FA and use strong, unique passwords.
KYC and Limits
MEXC requires identity verification (KYC) to unlock higher withdrawal limits and access certain features. Unverified accounts typically have lower daily withdrawal caps. Users should check the current requirements on the platform to understand their specific limits.
Funding and Withdrawals
Deposits (funding) are generally processed quickly once confirmed on the blockchain. Withdrawals involve network fees (gas fees) paid by the user, and MEXC imposes internal processing times and minimum withdrawal amounts. Always verify the current withdrawal fees and processing times before initiating a transfer.
Mobile and Web User Experience (UX) =
MEXC offers both a comprehensive web interface and dedicated mobile applications (iOS and Android). The web platform is typically preferred for detailed charting and complex order management, while the mobile app provides convenience for monitoring positions and executing quick trades.
Risks and Responsible Trading
Cryptocurrency trading involves substantial risk, especially in leveraged products. High leverage amplifies both potential gains and losses. Traders should never invest more than they can afford to lose and should utilize risk management tools like stop-loss orders.
First Steps Checklist
For new users looking to start on MEXC:
- Complete registration via Register here.
- Enable Two-Factor Authentication (2FA).
- Complete basic KYC verification to increase limits.
- Deposit a small amount of cryptocurrency or fiat currency.
- Familiarize yourself with the Spot market interface using small trades.
- If exploring derivatives, start with low leverage in the Futures contract market after reading introductory guides.
See also (on this site)
- MEXC Platform Features Explained Simply
- Explore Assets Available on MEXC Exchange
- Essential MEXC Order Types for Beginners
- MEXC KYC Requirements and Trading Limits
Recommended articles
- Navigating Futures Markets: How to Use Technical Analysis Tools Effectively
- What Are the Most Liquid Futures Markets?
- Using Correlation in Futures Markets
- Crypto futures markets
- Crypto Futures Liquidity: Why It Matters
Recommended Futures Trading Platforms
| Platform | Futures perks & welcome offers | Register / Offer |
|---|---|---|
| Binance Futures | Up to 125× leverage, USDⓈ-M contracts; new users can receive up to 100 USD in welcome vouchers, plus lifetime 20% fee discount on spot and 10% off futures fees for the first 30 days | Sign up on Binance |
| Bybit Futures | Inverse & USDT perpetuals; welcome bundle up to 5,100 USD in rewards, including instant coupons and tiered bonuses up to 30,000 USD after completing tasks | Start on Bybit |
| BingX Futures | Copy trading & social features; new users can get up to 7,700 USD in rewards plus 50% trading fee discount | Join BingX |
| WEEX Futures | Welcome package up to 30,000 USDT; deposit bonus from 50–500 USD; futures bonus usable for trading and paying fees | Register at WEEX |
| MEXC Futures | Futures bonus usable as margin or to pay fees; campaigns include deposit bonuses (e.g., deposit 100 USDT → get 10 USD) | Join MEXC |
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