How do you Create Liquidity on Your Bitcoin Exchange?

Bitcoin Exchange

Every entrepreneur is interested in increasing their capital and making their money work. In this case, cryptocurrencies have become a popular option to generate some passive income. Here we provide the create liquidity on your bitcoin exchange.

The crypto trading sphere seems challenging for newcomer brokers. Of course, experienced business founders are aware of the pitfalls in this industry, but beginners may be facing losses instead of generating profits. This is why you need to look for a trustworthy liquidity provider (LP).  

What are crypto liquidity aggregators?

They are companies that hold digital coins to organize the sales on the digital currency market. LPs work with buyers and sellers and is why crypto liquidity providers are also known as “market makers.” 

Successful LPs have a massive impact on exchange platforms. They generate a more significant trading volume than retail traders, and as a result, they take an enormous profit from it. 

How to start a partnership with the provider

You need to be sure that the LP you choose provides an outstanding service. First, you need to prove that you are interested in a profitable partnership. Asking this list of questions to a potential liquidity aggregator will help: 

  1. What liquidity pools does the market maker offer access to?
  2. How many resources does the LP need to generate an appropriate trading volume? (it will also impact on the attractiveness for clients)
  3. Are detailed reports provided for all activities on the BTC exchange? (it will allow you to estimate potential income more precisely, as well as the level of the market maker)
  4. Where are data centers situated? (this parameter affects the delay in transaction processing).

Choosing a Bitcoin liquidity aggregator is not straightforward, and you need to look for various companies and analyze their pricing policy, trade hardware, economic impact, and legal requirements. 

 What are the other ways to increase Bitcoin liquidity

In some cases, founders of crypto exchanges do not want to partner with liquidity aggregators. The reason is simple: they see them as scammers. Further, not every company can guarantee first-class service and tools for providing top-notch liquidity and expanding customer base. Market makers are not only instruments to improve Bitcoin liquidity on exchanges.

Nevertheless, there are some other ways to generate more liquidity on the BTC platform. For example, you can use other digital currency platforms. If your reserves are insufficient, the exchange service can buy crypto on another service and transfer it to the customers. This approach makes transaction processing faster, allowing clients to create more new orders.

The cryptocurrency sphere can expect some new features soon. In 2018, the Blockchain Exchange Alliance and Oneroot started a partnership. These companies plan to launch a full-fledged pool of different digital currency platforms, which will help connect all transactions and order books. 

Where to find a trustworthy liquidity provider for your BTC exchange

B2Broker is a leading supplier of liquidity for Bitcoin exchange platforms. We provide access to the deepest liquidity pools for hundreds of crypto coins, allowing your traders to get their orders filled instantly. If you experience some technical queries, our customer support team is ready to help you 24/7. Contact us today and launch your own Bitcoin exchange with more liquidity now!