Searching for the best liquidity solution providers for cryptocurrency exchange and trading market ?
Well done, you have just landed the right cryptocurrency liquidity solutions provider to build your cryptocurrency exchange trading business success and beat your competitors in the market.
Common factor of liquidity:
Every bitcoin users know that liquidity, it is an important parameter of cryptocurrency and diigtal asset that allows one to know how quickly it can be realized at its market price
For Example: Money is considered to be the most liquid, because by using this anyone can easily purchase goods at any time at any where and at the current market value. But, Fiat currencies meet this criteria, What about cryptocurrencies?
What means liquidity in cryptocurrency market?
As by a rule, it is a company that holds digital assets in its accounts in order to organize their sales. The company is active both on the side of the buyer and the seller. In other words, they are said to be “make the market”. Therefore, cryptocurrency liquidity solution providers are often called market makers. The liquidity solution providers acts as a special trading bot for cryptocurrency exchange platforms.
With the immense development of liquidity provider, they are creating a big impact on cryptocurrency exchange and trading. In cryptocurrency exchange platform, the trading volume doesn't on ordinary users of it instead it depends on cryptocurrency liquidity providers.
Accordingly, the more trading time a cryptocurrency market maker takes, the more attention he can attract from the trader and he can earn more profit than usual.
What are the things need to consider while choosing crypto market makers?
If you are a businessman, Choosing a right Bitcoin liquidity provider among the wide competition is a rather complicated process. It is not enough to spending your valuable time to gothrough about different liquidity development companies by
- Focusing on the service with the highest rating.
- It is necessary to conduct an analysis of pricing,
- Trade infrastructure,
- Economic efficiency and
- Legal aspects of the company.
When searching you need to start with the basic principles of the work of market makers.
Why liquidity solution is important for crypto exchange?
The cryptocurrency market is known for empyreal volatility indicators. Therefore, crypto exchange liquidity providers, “making the market” concentrate most of their activity on increasing trading volume on the cryptocurrency exchange platform and reducing the frequency of price changes.
First of all, liquidity is achieved by increasing the number of available assets in the trading pair. This creates a constant flow between supply and demand. The connection of the liquidity provider with financial institutions around the world reduces spreads. So cryptocurrency exchange, which necessarily cooperate with market makers, work more stable and attract more newcomers.
What do liquidity providers require?
Capital Efficiency
In order to trade across multiple venues, liquidity providers have to break up their balance sheet, trust their assets in the hands of centralized exchanges, and manage counterparty risk.
Security
Proper security requires audited controls for the storage of keys, disaster recovery, geographical and personnel redundancies, egress out of cold wallets, and other vital processes.
Risk Mitigation
Market makers and OTC trading desks rely on the trustworthiness of the exchanges they trade on and the counterparties to whom they provide execution.
Factors Affecting Liquidity
Trading volume
Having high trading volume means the volume of a crypto coin’s trade over an exchange in the last 24 hours. The liquidity and the activity of an exchange platform tend to increase if the trading volume of a specific coin is higher.
Acceptance
Global adoption is one of the important factors for an exchange to achieve higher liquidity and better credibility. One case in point is the global acceptance of Bitcoin as a transactional by, for instance, giants like Apple, Amazon, etc.
Regulations
Different countries have a different set of rules for the usage of cryptocurrency. These laws will directly influence the Crypto liquidity. Certain countries have restricted the Cryptocurrency, this leads to the impairment of liquidity of a particular cryptocurrency in that geography.
Two types of liquidity:
1. MARGINAL LIQUIDITY
- Cryptocurrency derivatives (CFD)
- Open a marginal account in fiat or cryptocurrency
- Low Commission with scalable commission programs
- Deep pool of liquidity
- High speed execution and no rejections
- Leverage up to 1:5
- Colocation in Equinix NY4, LD4, TY4, Hong Kong, Germany
- No last look
Marginal liquidity provides Ideal solutions for:
- Forex brokers
- Crypto brokers
- MT4/MT5
- Hedge funds
- ICO Projects
- Liquidity Providers
- HFT traders
- Arbitragers
- All other financial institutions
2. DELIVERABLE LIQUIDITY (CASH)
- Get physical delivery on an asset
- Ideal Solution for:
- Crypto exchanges
- Exchangers
- Crypto brokers
- Institutional investors
- Traders
- Crypto funds
- ICO projects and other financial institutions
Where to get a cryptocurrency liquidity provider?
Well, we have a real simple answer to that.
At Coinjoker - Cryptocurrency Liquidity Solution Provider, We analyzed and listed qualities and more to deliver top-notch liquidity solutions for your cryptocurrency exchange and trading platform. We are leading cryptocurrency exchange, blockchan solutions in the blockchain and cryptocurrency market, and we possess the best-in-class talents and technical knowledge to take your exchange from zero to success.
Here are a few of the additional features we offer:
- CROSS-FX
- Multi-Asset Engine
- Price Mark-ups
- Risk Management Tools
- High-Frequency Execution
Click Here to get free live demo of our liquidity functionalities how it would be useful for your business !!
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