Exchange businesses and investors have witnessed the issue of liquidity in most of the white label crypto exchange platforms. This is one of the challenges faced by many decentralized cryptocurrency exchanges. Moreover, the use of small order books and giant bids on the white label crypto exchange software can halt the trading or slow it down. It results in driving away the investors that bring liquidity in the market.
Why is Liquidity Issue Prevalent in Crypto Trading?
- Different exchange businesses use distinct white label crypto exchange platforms. They have aseparate trading volume and pairs that lead to liquidity issues.
- By 2018, there were around 1600+ cryptocurrencies available in the market. Many of them are not worth to invest. Besides, the exchange business list limited crypto pairs and results in a lack of liquidity.
- Lack of ability to buy and sell the assets at stable prices gives rise to liquidity problems in the market.
- Most of the crypto traders hold the cryptos for an extended period to witness if it reaches the profit levels. It leads to massive price swings and volatility levels.
- Complicated user interfaces keep them away from frequent trading.
How to Solve the Liquidity Issue
It is significant to understand the needs of investors. With modern technology and feature-rich Cryptocurrency exchange software, exchange businesses can encourage the investors to trade regularly. This, in turn, increases the liquidity of cryptocurrencies.
Exchange businesses can look at the following pointers to solve the issue of liquidity.
- Facilitate investors to trade with their choice of crypto pairs. For this, exchange businesses should use a white label crypto exchange platform that offers more crypto pairs.
- Send market tips or future values to investors regularly. This will encourage traders to book their profit at the right time.
- Provide contemporary and user-friendly interfaces to investors and make their life easy.
- Include features like limit and stop order. It will help traders to purchase or sell the stock at the desired price.
- Offer native mobile apps for Andriod, and iOS investors consist of latest technology. It will facilitate investors to trade from anywhere.
To sum up, it is mandatory to see the liquidity metrics of the crypto market. Espay offers white label crypto exchange platform that is reliable, secure, and feature-rich. The traders can easily manage their buying and selling activities. This will prevail in the right amount of liquidity levels.