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Here, we have mentioned about the liquidity and also how to improve liquidity in your cryptocurrency exchange platform.
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How to Increase Liquidity in your Cryptocurrency Exchange Pla?orm? To launch a successful cryptocurrency Exchange so?ware, it is crucial to check that your crypto-exchange has high liquidity or not. Before understanding how to gain high liquidity, lets us discuss briefly what is liquidity and why it is important?. What is Liquidity? Generally, liquidity is the degree whereas a digital asset can buy (or) sell for cash without affec?ng the cost of your asset. For the reason, the concept of liquidity in cryptocurrency indicates that exchanging orders are matched with each other in the minimum ?me. Higher the liquidity in your crypto-trading pla?orm, the cost of cryptocurrency also would be high. Let us consider, world's most popular crypto exchange pla?orm like Binance (or) Coinbase, because of high liquidity in the pla?orm, they are achieving to a greater extent. What does cryptocurrency liquidity providers do? Cryptocurrency is unstable - that is the cost may vary each day. Market makers (or) liquidity providers play an important role in keeping up the stability by enhancing the trading volume. Moreover, marketers don't work for free and they are making plenty of money from this business. They play on the price gap of cryptocurrency exchange and also chare an extra commission fee for each transac?on. Achieve high liquidity in Your crypto-trading pla?orm: If the liquidity is low, crypto-exchanges usually try to engage market makers by the following methods: Reducing the maker trading feeds. ● sharing a profit from the taker feeds. ●
Provide payments to the market makers for their ac?vity. ● How to Choose the best cryptocurrency liquidity solu?on providers? If you are looking for the top cryptocurrency liquidity providers, it is important to know that they can sa?sfy your following criteria. Depth of Market: Understanding market depth is an essen?al one. This shows the indica?on of the liquidity and depth for a par?cular cryptocurrency. The higher the number of exchange orders at each price, the higher the depth of the market. Faster Execu?ons: Liquidity provider/market maker should provide a fast trade execu?on with requotes or slippage at the ?me of high impact. Cos?ng: A liquidity provider's price offering should include the more compe??ve spreads as well as low commissions and swaps with no compromises on each side. Data Feeds: A liquidity market maker must offer client data feeds that are more stable and reliable. The feeds of the price should reflect the real-?me prices from all the relevant exchanges as well as the interbank forex market. Any kind of delay in delivering the price data may result in the gap. Repor?ng: Your liquidity market maker should be responsible and more efficient in comple?ng their daily tasks. Though many devia?ons could happen at the ?me of certain circumstances. To avoid this, an automated trading server should be offered to every person who is collabora?ng with the liquidity providers to check the transac?ons. Build Your Cryptocurrency Exchange Pla?orm with the High Liquidity: From the above discussion, we can understand that liquidity is an important one for any kind of cryptocurrency trading pla?orm. We, At Osiz Technologies - A leading cryptocurrency exchange development company offers an end-to-end cryptocurrency exchange development services integrated with the high liquidity and security features. And also, we provide white-label crypto-exchange solu?ons that aid to launch any kind of exchange pla?orm within 7 days. On the other hand, we can also build customized crypto-exchange so?ware from scratch according to your business needs.