• Media type: E-Book
  • Title: How to Measure the Liquidity of Cryptocurrencies?
  • Contributor: Brauneis, Alexander [Author]; Mestel, Roland [Other]; Riordan, Ryan [Other]; Theissen, Erik [Other]
  • Published: [S.l.]: SSRN, [2020]
  • Extent: 1 Online-Ressource (43 p)
  • Language: English
  • DOI: 10.2139/ssrn.3503507
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 5, 2020 erstellt
  • Description: We show that low-frequency measures of cryptocurrency liquidity perform adequately in describing high-frequency actual liquidity. We calculate benchmark measures from high-frequency order book data and document the performance of low-frequency transactions measures. The Abdi and Ranaldo (2017) estimator outperforms all other measures in the time-series irrespective of the frequency, exchange, benchmark measure, and cryptocurrency. It also performs well during high and low liquidity and volatility periods. When estimating liquidity levels the Kyle and Obizhaeva (2016) estimator and the Amihud (2002) illiquidity ratio outperform. Overall, results suggest that there is not yet a universally best measure but, depending on the application, there are good low-frequency measures
  • Access State: Open Access