Launching a business in the crypto industry is probably one of the best ways to capitalize on the growing trends in blockchain technology and cryptocurrencies. Bitcoin adoption rate is increasing, and centralized institutions are offering more BTC and ETH-based investments, leading to an increased demand for buying and selling cryptocurrencies.
However, before you launch a crypto brokerage, you need to consider many things, starting with the tech stack holding your platform and the crypto liquidity providers that supply tradable assets and coins for your clients.
Today, we will review some of the best crypto liquidity providers that you can work with in 2024 and discuss the benefits of cooperating with a crypto LP.
Who Are Crypto Liquidity Providers?
Liquidity providers are large financial organizations, hedge funds, banks, and other intermediary institutions that supply brokerage firms with tradeable securities by providing financial market access.
Crypto liquidity providers connect Bitcoin brokers to liquidity funding sources and pools that populate the brokerage platform with virtual coins and tokens to facilitate trading and storing various digital assets.
The Leading 3 Crypto Liquidity Providers in 2024
Liquidity providers (LPs) are becoming increasingly popular, and finding crypto liquidity providers is no longer challenging. However, the real obstacle is locating one that suits your business needs and aligns with your offerings.
Let’s take a look at the best three market players that can potentially provide crypto liquidity to your brokerage.
1. B2Prime
B2Prime is a crypto and Forex liquidity provider that uses a Prime of Prime model to supply mid-size businesses and startups with adequate liquidity. B2Prime is a part of the B2Broker group that specializes in technology and liquidity provision to brokerage firms of all types.
B2Prime’s PoP crypto liquidity makes it viable for newly launched crypto brokerage firms to offer blockchain-based investment opportunities and compete with existing market players.
Crypto brokers use B2Prime’s liquidity services benefiting from its flexibility and legal compliance as the company fully adheres to crypto and Forex regulations stipulated by CySEC, Mauritius, and Seychelles licenses.
2. Interactive Brokers Crypto
Interactive Brokers is a renowned market player in brokerage and crypto services, offering tech solutions and liquidity channels to online trading platforms.
Interactive Brokers’ liquidity model offers low commission fees that start from 2% per order, besides multiple crypto trading and storing possibilities that make a broker’s platform more competitive.
With multiple integrations and elevated convenience, IB LP equips brokerage firms with ETF trading, options, and other financial investment services that align with the changing user preferences.
3. Leverate
Leverate is a significant liquidity and crypto trading partner that powers brokerage firms and hedge funds with tools to buy and sell Bitcoin and other virtual currencies, besides a bunch of other financial services.
Leverate liquidity model includes an advanced newsfeed and risk management system to increase the rate of success for both broker and trader.
The company uses its vast market experience and existence to offer deep market access that ensures quick order execution at the best spread ranges and the lowest slippage rate. These utilities allow crypto brokers to improve their performances and attract more traders.
The Benefits of Integrating Crypto Liquidity Providers
Liquidity is essential for any brokerage firm, and it has become significantly crucial for crypto brokerage firms due to the high market fluctuation and instability. Therefore, partnering with the right crypto LP ensures you offer the following.
1. Stabilised Market Volatility
As the crypto liquidity increases, your platform becomes more resistant to price fluctuations, especially after executing large orders. Otherwise, buying or selling a huge amount of BTC or ETH at your platform can largely affect these coins’ prices or the execution price of other pending orders leading to wide dissatisfaction on your platform.
3. The Best Trading Conditions
Equipping your crypto brokerage platform with deep liquidity sources makes trading more possible. In other words, when the supply increases, the price (transaction fees) decreases, allowing you to offer tight spreads and process transactions with minimum price divergence.
4. Prospective Business Growth
Regulated and trustworthy crypto LPs are the catalyst for business growth as they ensure stability and boost the performance of your platform. This might not happen overnight, but implementing these practices in the long term can largely elevate your business and increase its longevity.
Conclusion
Crypto liquidity providers are a critical piece of your brokerage software. LPs can elevate your business by stabilising it despite the huge crypto market volatility and coin price fluctuations.
This happens because high liquidity enables brokers to offer trading opportunities across a huge number of crypto coins and tokens at the best spread ranges, which eventually attracts more traders and users to the brokerage platform.
