Whether you indulge in white label crypto exchange development or build a new exchange from scratch, fortifying your exchange platform with high-liquidity options is paramount.
The importance of liquidity – while indulging in white label crypto exchange software development or building a new crypto exchange from scratch – can be highlighted under two main divisions:
Fair trade prices- When an adequate number of crypto investors or traders are present in the crypto exchange, then there are increased chances that fair prices would be maintained in the system. This is due to the factor that for every asking price there would be a bid price and vice-a-versa. Thus, liquidity would be efficiently maintained and pricing would also remain at standardized rates.
Stability of market- Due to the volatility in the pricing of cryptocurrencies, majorly bitcoin, the market has become more unstable and variable. Regular fluctuations in the pricing affect the reliability of crypto assets. Thus, with efficient liquidity in a crypto exchange, the manipulation in pricing could be controlled and stability in functionality would be experienced.
Read more, Understanding liquidity and its importance
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