The Role of Liquidity in Cryptocurrency Exchange

This article examines the role liquidity plays in a cryptocurrency exchange, why it’s important and highlights some of the key factors that affect liquidity in order to give a basic understanding of how it works.

What is Liquidity?

Liquidity is a common term used in the financial markets and can best be described as how easily an asset can be swapped for cash. When seen in the context of cryptocurrency liquidity it’s how easily coins can be exchanged into cash or other coins. Hence, the market can present either high or low liquidity levels. High liquidity occurs in situations where there is a stable market and few price fluctuations. Conversely, with low liquidity levels there is market volatility present which can cause spikes in the price of cryptocurrencies.

Top 10 Reasons to Start your Crypto Exchange Business

Most demanded – Time is not like as in 2009. It is true that during the introduction of Bitcoin there has been no demand for this digital currency, but only after a decade, the demand and trade had increased 10000%. Can you believe this? Yes, with the emergence of many advanced crypto technologies, the crypto business is the most demanded business in the entire world. So, kickstart your crypto business and do business like a boss.

Top Decentralized Exchanges to Watch in 2019

As most of them have tried with Centralized Exchanges like Coinbase, Binance, and looking to branch out further? If you’re one such person, this article is a must-read for you.

You can go with creating and launching Decentralized Exchanges (DEX) which are the new crypto future. Decentralized Exchanges are the crypto trading platforms that perform transactions anonymously or without a central authority. The major motto of launching DEX is to get rid of unwanted fraudulent activities from third-party services.