Why does your crypto business need a crypto liquidity provider?

Having a top liquidity provider as your partner can truly accelerate your crypto business growth. Whether you are in a crypto project or exchange business, having high liquidity and deep order books will surely help you attract more traders and investors. Plus, it will also help deliver a smooth trading experience to your users by minimizing slippage and reducing direct and indirect trading costs.
What does a top liquidity provider do?

So you might be wondering — how does a liquidity provider deliver all those benefits?
Top liquidity providers have significant amounts of assets under management that they use to provide liquidity or, in other words, “make the market”. These assets are put in both fiat and crypto pairs (according to collaboration agreement) to execute buy and sell orders made by traders. The orders are fulfilled 24/7/365 thanks to advanced trading technology and robust risk management systems in place.

5 Factors to evaluate a top crypto liquidity provider on:

1. Technology
The best liquidity providers work with automated or algorithmic trading systems that fill up the order book with both buy and sell orders and execute them when matched in a matter of fractions of a second. As such, whenever a trader or an investor wants to enter or exit a trading position, they can do so in an instant.
Such quick execution benefits all market participants and encourages increased trading volumes as everyone can quickly exchange their digital assets for cash or other assets.
Advanced trading systems and exchange API integrations are at the heart of any top market maker strategy.

2. Trading Volume & Funding
Other important aspects for evaluating a crypto liquidity provider are their:
daily trading volumes
trading as a % of the total market trading volume
assets under management,
the liquidity levels that can be delivered on e.g. a daily/weekly/monthly basis
how much of their funds will be allocated for liquidity provision for e.g. specific pairs etc.

Why does your crypto business need a crypto liquidity provider?

Having a top liquidity provider as your partner can truly accelerate your crypto business growth. Whether you are in a crypto project or exchange business, having high liquidity and deep order books will surely help you attract more traders and investors. Plus, it will also help deliver a smooth trading experience to your users by minimizing slippage and reducing direct and indirect trading costs.
What does a top liquidity provider do?

So you might be wondering — how does a liquidity provider deliver all those benefits?
Top liquidity providers have significant amounts of assets under management that they use to provide liquidity or, in other words, “make the market”. These assets are put in both fiat and crypto pairs (according to collaboration agreement) to execute buy and sell orders made by traders. The orders are fulfilled 24/7/365 thanks to advanced trading technology and robust risk management systems in place.

5 Factors to evaluate a top crypto liquidity provider on:

1. Technology
The best liquidity providers work with automated or algorithmic trading systems that fill up the order book with both buy and sell orders and execute them when matched in a matter of fractions of a second. As such, whenever a trader or an investor wants to enter or exit a trading position, they can do so in an instant.
Such quick execution benefits all market participants and encourages increased trading volumes as everyone can quickly exchange their digital assets for cash or other assets.
Advanced trading systems and exchange API integrations are at the heart of any top market maker strategy.

2. Trading Volume & Funding
Other important aspects for evaluating a crypto liquidity provider are their:
daily trading volumes
trading as a % of the total market trading volume
assets under management,
the liquidity levels that can be delivered on e.g. a daily/weekly/monthly basis
how much of their funds will be allocated for liquidity provision for e.g. specific pairs etc.