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Cryptocurrency-Liquidity-Provider

Every entrepreneur aims to raise the capital for their own businesses. When you are one such person, getting ready to start your own cryptocurrency exchange, it is highly important that you incorporate high liquidity features to it.  

But before you do so, it is crucial that you have a basic understanding of the concept of liquidity.  

So, here is an article to help you out. 

What is Liquidity? Why A Cryptocurrency Liquidity Provider? 

Liquidity service is nothing but the buying, selling, trading, and converting of cryptocurrencies. To put it short, liquidity is an important aspect necessary for the long-term survival of any cryptocurrency exchange. Therefore, an efficient cryptocurrency trading liquidity provider can greatly impact your cryptocurrency trading platform’s success in various ways. 

An embedded cryptocurrency liquidity provider offers you stability in the crypto industry. Therefore, it brings about a hassle-free process to execute cryptocurrency trades on the exchange. Also, this can be thought of as a great profit for the sellers who sell coins on the cryptocurrency exchange and for buyers it means fair prices and consistent knowledge about the market.  

Often, traders prefer trading cryptocurrencies over exchanges that features high-end liquidity. The main goal of every cryptocurrency exchange is to organize and boost sales by holding cryptocurrencies in its accounts. In fact, this is what makes the market. Thus, in summary, crypto exchange liquidity providers are simply called the market makers in the industry.  

Why Cryptocurrency Liquidity Providers? 

The crypto industry is considered pretty unstable, and bitcoins since its invention has been seen as a scandalous project. Nevertheless, bitcoins still hold the highest trading volume which simply means, any cryptocurrency exchanges should offer maximum cryptocurrency liquidity possible.  

Building liquidity consumes a lot of energy and resources. Furthermore, if you decide to concentrate more on liquidity, you won’t be left with much time to develop the exchange and its services. Nevertheless, you have to take care of liquidity at first because high liquidity is an important factor that can help attract new investors. 

To generate liquidity, you can either create your own software to increase the liquidity or contact companies that offer specific software solutions.  

How To Choose The Best Cryptocurrency Liquidity Provider? 

When you are looking to collaborate with the best cryptocurrency liquidity provider, it is important that you choose a company that satisfies the following criteria: 

  • Always at Your Service: 

As a company working in the fintech industry, it is highly important that your liquidity provider always keep you updated about the latest happenings. Before you begin your collaboration, get an agreement made about responsiveness and the tasks that need to be done. A liquidity provider should be responsive to the following cases: 

  1. Email notifications 
  1. Report generation on profits gained 
  1. Report generation on the history of transactions 
  1. Report generation on open and closed transactions 

 

  • Trustworthiness: 

If a cryptocurrency liquidity provider should be anything, it should be reliable. Since the crypto industry isn’t devoid of scams, it is important that you hire the most reputable cryptocurrency liquidity provider in the industry. 

  • Efficient:  

Your liquidity provider should be responsible and efficient in completing their daily tasks. Though deviations can happen during certain circumstances, an automated trading server should be provided to every person collaborating with the liquidity provider to check the transactions.   

Finally, How To Get A Cryptocurrency Liquidity Provider? 

Well, we have a real simple answer to that.  

At DigiXHub, we feature all the listed qualities and more to deliver top-notch liquidity for your cryptocurrency exchange. We are a pioneer in the blockchain and cryptocurrency market, and we possess the best-in-class talents and knowledge to take your exchange from zero to success.  

Here are a few of the additional features we offer: 

  1. CROSS-FX 
  1. Multi-Asset Engine 
  1. Price Mark-ups 
  1. Risk Management Tools 
  1. High-Frequency Execution 

And, much more! 

So, how about contacting us for a free consultation? 

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