The major motto of an entrepreneur is to raise the capital in their own businesses. There are different sorts of ways such as investing in the stock market, cryptocurrencies, etc. Therefore, if you are one such person, you can get started with building your own cryptocurrency exchange to get profited. As Blockchain and cryptocurrencies are the hot talks of the town, we can expect most of the sectors to implement this technology.
Hence, to launch new bitcoin exchange trading platform it is crucial to ensure high liquidity features in it. So, make sure you know the complete concept of Liquidity before you get started with exchange software development.
What is Bitcoin Liquidity? Who are the Cryptocurrency Liquidity Provider?
A Liquidity Service in cryptocurrency refers to the process in which the buy and sell orders are performed & traded and efficiently converted into cash. The higher the liquidity in the market, the fair will be the price of the cryptocurrency. To put in simple words, a cryptocurrency liquidity exchange is necessary for cryptocurrency’s long-term survival. Undoubtedly, a successful Bitcoin Trading liquidity provider will create a great impact on Bitcoin trading platforms.
Moreover, a high liquidity embedded cryptocurrency can make better stability in the crypto industry. Hence, it brings in a hassle-free task to perform the exchange of cryptocurrency for other assets. This can be a great profit for a seller who sells his coins to a buyer. On the other hand, for a buyer, it means a fairer price and the knowledge that the market remains consistent in the long-term.
Most of the traders move with crypto trading platforms which offer high-end Liquidity. If you consider popular exchanges like Coinbase, the traders are blessed with a separate set of accounts by ensuring rich liquidity in this volatile market. In addition to these exchanges, Binance, Kraken, BitMex also offers good liquidity to its users.
As a White label Crypto Exchange owner, you may also have the same goal. As a rule, the company is responsible for holding the digital assets in its accounts to organize and boost sales. This is what makes the market. Hence, the crypto exchange liquidity providers are called the market makers in the industry.
Importance of Cryptocurrency/Bitcoin Liquidity providers:
They enhance market figures
As we are in the Crypto industry, it is well-known for volatility factors. Therefore, these market makers are responsible for enhancing the trading volume and reducing the fluctuation in the prices.
This, in turn, is achieved by increasing the number of tradeable assets in the trading pair. This creates a constant flow between the supply and demand factors. Therefore, the cryptocurrency exchanges which seamlessly cooperates with these market makers/liquidity providers to attract more traders.
They perform a wide range of services
One thing is clear. The forums and websites which offer the best prices for a deal are found to be irrelevant. These market makers go with the current price in the industry by performing all the tasks with minimal delays.
Market Makers make commissions & profits
You may wonder how these liquidity providers would make money! The main source of their profit is the high trading volume in the crypto trading platforms. In addition to these, they earn a piece of charge for every transaction as a commission fee.
Choosing the best-in-class Bitcoin Market Maker/ Liquidity provider:
While selecting the top crypto liquidity provider, it is important that they satisfy the following criteria:
As a Cryptocurrency Liquidity provider, it is important to remain reliable in the industry. Therefore, it is crucial to check the regulators of crypto liquidity providers. Since the industry is composed of scams, hiring a reputable Cryptocurrency Market Maker is a must.
A company operating in the field of Fintech service should always remain updated with the activities. An agreement should be done for reporting the tasks. Thus, a market maker should be responsive to the following set of activities:
- Email Notifications
- Report Generation on the profits gained
- Report Generation on the history of transactions
- Report Generation on the open & closed transactions for a selected period
Performing the Tasks
More importantly, the solution provider should be responsible for performing daily tasks efficiently. However, deviations are allowed but at the undesired circumstances. Every person who cooperates with the Bitcoin Market Maker should be given the opportunity to check the transactions with automated trading software. This software allows one to build detailed statistics & analytics.
So, How to get Cryptocurrency Liquidity Providers?
Coinsclone, the top-notch Bitcoin Market Maker satisfies all the above criteria and deliver best-in-class Liquidity for your cryptocurrency exchanges. Being a pioneer Cryptocurrency/Bitcoin Liquidity provider in the market, we have designed our automated script in a manner to enhance the Liquidity for your trading platforms.
In addition to this, our Liquidity API feature is responsible to integrate with multiple crypto exchanges and thus increasing the liquidity for your traders.
Additionally, here are our other features we integrate in our customizable Whitelabel cryptocurrency exchange software:
- Initial Exchange Offering Module
- Atomic Swaps
- Margin Trading
- Security Token Exchange
- Mobile Application trading feature for Android & iOS devices
- Cryptocurrency Wallet Development & Integration (Hot & Cold Storage)
- Trading Bot
- Order Book Exchange
- Market Orders
- Investor & Issuer Console
And much more!
Why not contact us for a chargeless consultation?