Reviewing Top 5 Crypto Liquidity Providers in 2024

Top Crypto Liquidity Providers to Elevate Your Brokerage in 2024

Trading virtual coins and assets is becoming increasingly popular for the new generation of crypto enthusiasts and digital entrepreneurs. Additionally, traditional investors are also realising the profitability and potential of this market.

Therefore, it is the right time to launch your crypto brokerage business, capitalising on the growing trends of crypto assets and earning considerable commission rates from the increasing number of market participants.

However, finding a suitable crypto liquidity source is the key aspect of boosting and facilitating trading activities. Let’s explore the role of crypto liquidity providers and review the top five LPs you can connect your platform with.

Why Are Crypto Liquidity Providers Important?

Liquidity plays a major role in price stabilisation and market efficiency, making tradeable assets highly available to reduce the impact of sudden buy or sell pressures. Otherwise, with low liquidity, prices can sharply surge when a significant buy order is executed, affecting a huge number of traders and coin holders.

Let’s review the main functions of crypto LPs and how they assist in improving the performance of your brokerage or exchange software.

Reducing Volatility Impact

Liquidity providers engage in buying and selling market assets to make them more available to other participants and mediate in bid/ask price differences to fasten the order execution process.

More importantly, they increase the supply of cryptocurrencies and digital assets, which makes them more resistant to sudden fluctuations. For example, when a market whale buys hundreds of Bitcoins, the BTC price usually increases because the supply decreases. However, if liquidity is at high levels, the volatility impact is lowered.

Therefore, other investors are less likely to get affected by other participants’ activities, increasing the performance of your platform.

Boosting Market Stability and Efficiency

Liquid markets have a high supply of tradeable securities and, in this scenario, more virtual coins and tokens. Therefore, the spread range is lowered because there is a huge number of users willing to take the other side of the trade, making trading more affordable.

Additionally, matching engines work more efficiently during high liquidity because they can consolidate and execute orders at higher frequencies than during low liquidity. This reduces the chance of slippage and ensures that orders are executed at prices close to the real market value.

Ultimately, having low spread ranges and minimum slippage rates, increase the competitiveness of your crypto exchange and attract more investors to your platform.

Top 5 Crypto Liquidity Providers in 2024

Due to the lowered entry barriers and advancement of technology, financial institutions and crypto aggregators started offering a wide range of services, including primary or secondary sources of liquidity and consolidated order books that ensure the best trading conditions.

Let’s review the top five crypto liquidity providers and how they can improve your crypto brokerage experience.

B2Prime

B2Prime is a leading prime of prime LP that offers deep market accessibility to various markets, including cryptocurrencies, Forex, equity, indices, commodities and more. They provide brokers with access to tier-1 funding channels and sources, offering trading at the most favourable terms.

It is a regulated crypto and FX liquidity provider that complies with CySEC and Mauritius, offering PoP solutions inside and outside Europe.

Interactive Brokers Crypto

Interactive Brokers Crypto facilitates crypto trading at low commissions, starting from 2% of the order value. Users can trade and store various crypto assets and coins in multiple virtual and fiat currencies.

IB Crypto expands its trading offers to stocks, options and ETFs through Paxus Trust Company, which streamlines and executes trading activities.

Leverate

Leverate LP offers various brokerage and tech solutions for brokers who want to expand their offerings to crypto assets, as well as a solid risk assessment tool and premium financial services.

Crypto brokers use Leverate’s solutions to offer risk hedging and cooperating trading modes that cope with the changing user preferences and trading styles.

Wintermute

Wintermute uses an algorithmic method to execute trading positions. It reroutes orders across a wide range of exchanges and brokerage firms, such as Binance, Coinbase, and Uniswap to offer the best rates. 

Wintermute liquidity offerings cover centralised and decentralised exchanges, offering a variety of trading analyses, spot exchanges, financial advisory, and more.

Gotbit

Gotbit is a crypto market maker that offers algorithmic trading capabilities and trading desks to multi-asset brokerage firms and investment banks. It supports over 60 centralised and decentralised crypto exchange platforms.

With a continuously updated pack of automated services and crypto integrations, Gotbit serves a wide range of digital investors looking for the most convenient trading solutions. 

Conclusion

Launching a crypto brokerage platform involves a significant challenge of finding and sourcing liquidity for your software, therefore offering the best trading conditions for your investors.

Crypto liquidity providers are becoming increasingly popular and available. However, finding the right one requires thorough research on the offered services, features, and prices and choosing the one that aligns with your objectives, whether a crypto exchange, OTC trading, algorithmic trading capabilities, etc.