Why and How to Achieve High Liquidity in your Crypto Exchange

To launch successful white label bitcoin exchange software, it is important that the exchange has high liquidity. Before understanding how you can achieve high liquidity, let us comprehend what is liquidity and why high-liquidity is important.

What is liquidity?

In general terms, liquidity is the ease with which an asset or security can be converted into cash. Therefore, the concept of liquidity in cryptocurrency signifies that buy and sell orders are matched with each other in the minimum time. Higher the liquidity in an exchange platform, fairer would be the price of cryptocurrency.

If you consider any popular crypto exchange such as Binance or Coinbase, one of the main contributors to their success is high liquidity.

What do liquidity providers do?

Cryptocurrency is volatile – its price may elevate one day and plummet the next day. Market makers or liquidity providers play a crucial role in maintaining stability by improving the trading volume.

However, market makers do not work for free or as a charity. They make a lot of money from this activity. They play on the price gaps of crypto assets and also charge a commission fee for every transaction.

Choosing the best liquidity provider

While you go forward to choose liquidity providers/market makers, make sure that they satisfy the following criteria:

• Trustworthiness: It is very important to choose a reliable liquidity provider. Checking the work experience of liquidity providers can help in such a scenario.

• Reporting: You should have an agreement with the service provider to define the tasks and update you on all the activities.

Build a crypto exchange with high liquidity

Liquidity is an essential attribute of any cryptocurrency exchange platform.

We, at Antier Solutions, offer the best bitcoin exchange software development services while integrating your exchange platform with high-liquidity features. Besides, we fortify your exchange platform with market-leading security features to achieve world-class security.

We offer a white label crypto exchange solution to help you launch your exchange platform in just 7 days. On the contrary, we can build a custom exchange for you from scratch, based on your business needs.

Schedule a free demo of our white label crypto exchange or connect with us to share your needs for a custom exchange.