Pulsehyip, the top most White Label Cryptocurrency Exchange Solutions Provider in the Crypto Space is all set to provide you a game changing Crypto Exchange Script, to establish a new user experience and to lure traders into your platform.
Every Start-up and Entrepreneur will have an aim for their Cryptocurrency Exchange development process to be a successful one. For an exchange to be flawless, it is important to maintain a good rapport with the trader of the platform along with the provision of seamless exchange options and secured wallet features.In order to build your own exchange platform you would have done a lot of background research already. You would have put up some efforts to make sure that whole trading platform is prefect from the scratch. But you will also have a question popping up now and then, "whether the platform is well suited for the traders?"
On the other hand you get to see other exchanges like Binance, Bittrex, Coinbase, OKEx, Paxful to have a gifted amount of users with a exponential trading volume.For your platform to reach out like those platforms you don't need to emphasize much about design and content. As, every exchange platform has similar features with benefits.
Now you may have question "What really matters for the traders on an exchange platform"?
(1) Stability in the Security
(2) Apparent performance
(3) High liquidity
(4) Multi-language options
(5) Multiple coins listing
(6) Supported by all devices
These kind of features will help in creating a good flow of traders into your platform.
What is Liquidity?
Liquidity can be referred to as the extent to which a specific asset is bought and liquidated without affecting the general stability of its price. The higher the liquidity of an exchange platform, the higher will be the user engagement.
According to the terms of liquidity, an asset can be classified as a liquid and illiquid asset. Mostly, all the liquid asset have a open market to trade while the illiquid assets are traded privately. In simple terms, when its harder to encash an asset, it is said to be illiquid.
Importance of Liquidity
Liquidity plays an important role during Cryptocurrency exchange development.
Fair trade prices- With good number of Crypto investors/traders on an exchange platform, there would be a maintenance of the system. This is because, the platform with high trading activity will make the seller to bid at competitive prices thus naturally allowing the buyers to bis at higher prices. This creates an equilibrium which indicates market stability. Directly implying the fairness in pricing.
Market stability- Even large trades don’t affect the stability and the prices as the liquidity increases the number of investors.
Faster transactions- Faster transactions will be carried out on a platform with higher liquidity as the orders will be quickly fulfilled based on the demands and the supply.
Data Volumes for Technical Analysis- The larger the data pool, the more accurate the prediction about the technical analysis will be. The past prices and charting patterns remains one of the major methods to predict the price and landscape of values with cryptocurrencies. Liquidity is what gives huge volumes of data for technical analysis.
Factors affecting Liquidity
Below are the factors that influence Liquidity majorly. Let us look at those factors and how they influence liquidity.
Trading volume- Mostly people use cryptocurrency as a investment rather than a medium of exchange. In cryptocurrency trading, the volume is based on the number of coins that have been created in the past 24 hours.The liquidity and the activity will be higher when the volume of a specific coin is higher.
Cryptocurrency Exchange- The more the number of Crypto exchanges, the higher the market activity.This rise in the frequency and volume of trading helps to increase market liquidity.
Acceptance- It is important for the exchange platforms to be accepted by masses as well as merchants in order to create a better credibility and liquidity. The best example would be the acceptance of bitcoin as a transactional material by the global companies like Amazon, Apple etc.
Regulations- Different countries have different set of rules for the usage of cryptocurrency. These laws will directly influence the Crypto liquidity. Certain countries have restricted the Cryptocurrency, this leads to the impair of liquidity of a particular cryptocurrency in that geography.
Ways to solve the liquidity problem
Listing of cryptocurrencies- With more listed Cryptocurrencies in your exchange, you can attract more users.
Adding of payment streams-By adding up different payment streams such as wallet service, credit card, debit card or crowdfunding will facilitate trading thus enhancing the user count.
Access to multiple order books- Getting listed in multiple crypto exchange and carrying out trade through many exchanges helps to maintain liquidity.
Insertion of advance trading features- It boosts profitability by enabeling the investors to buy and sell the stock at specific price.
Intuitive interface A user friendly interface allures the Crypto traders to your platform.
"All that matters to the traders on a platform is the exciting features provided rather the attractive design of the platform."
This is how we have supported the development of exchange platforms for our previous customers.
The Cryptocurrency Exchange Script provided by us has advanced trading algorithm with high speed trading engine to make your business reach heights. The algorithm is updated based on the latest updates and security. Not only that, the script holds more basic currency pairs and advanced order types that will enable you to deploy your platform instantly.
Our Software is designed with enormous eye catching features with maximum benefits through data collection and analyzation for the global as well as digital ecosystems of Crypto businesses. Get a free consultation for your Cryptocurrency exchange development.