Liquidity Issue Problem With White Label Crypto Exchange Software

Liquidity is the most crucial factor when it comes to the trading market. Whether you are trading with Cryptocurrency or any other assets, it is necessary to buy and sell them at preferable market prices. However, liquidity is a significant issue associated with Cryptocurrency and white label crypto exchange software. 

The proper oscillations in the crypto market are beneficial for the trading of the cryptos and maintaining the liquidity of the cryptocurrency. However, the liquidity problem remains the same as many people have started their exchanges.

The market for Cryptocurrency is multiplying. By August 2018, there were around 1600 cryptocurrencies in the market. But not all of them can attract investors. Hence, white label cryptocurrency exchange software offers limited and different pairs of cryptocurrencies for exchange. This has made the liquidity of every crypto exchange to differ. Another reason for the failure of liquidity maintenance is the coin listings.

The issue of less liquidity prevails in the crypto market because of the availability of diversified cryptocurrency exchange software. It makes it difficult to exit this market with the right amount. Below are a few more pointers that describe the problem of less liquidity:

• Long-term Investment:The issue of less liquidity arises because users are unable to put their cryptos back into the market. They hold their cryptos for a long time and not willing to trade on white label crypto exchange.
• The Expectation of High Profitability:Most of the cryptocurrency owners hold their cryptos and wait for the cryptocurrency to reach a specific profitability level. This leads to a drastic change in the prices and volatility in the crypto market.
• Lack of Crypto Pairs: Nearly 22% of investors have complained about the lack of crypto pairs offered by white label crypto exchange platform. It hinders good trading options. 

Liquidity issue is not only upsetting the traders but affecting the market at large. It is changing the crypto market because of listing too many assets. The crypto trading and White Label Crypto exchange software are facing issues from Centralized and Decentralized exchanges.

A Centralized Exchange is not suffering from this issue, but a few percentages of traders are not happy with the available liquidity. Even the centralized white label crypto exchange platform is said to be suffering from listing too many assets. This has resulted in increased volatility in the prices and availability of a lack of profit margins.

Decentralized Exchange faces maximum liquidity problems because the ownership is not centralized. Here, users wait for the prices of their crypto to rise on the Bitcoin exchange software and sell only at a suitable price listing. It gives violent price swings that result in volatility issues.

The white label cryptocurrency exchange software has to go through drastic changes to maintain the liquidity of the cryptos. They have to open the active trading and invite traders to participate without holding the Cryptocurrencies. Moreover, there are many other ways to solve the liquidity issue too:

• List the Cryptos: The Cryptocurrency exchange providers must decide about the cryptos that must be added to the listing. Choose the exchange software that facilitates you to add as much as cryptocurrencies you want. So, investors can exchange them quickly.
• Add the Revenue Streams: One must trade while exchanging the coins using different revenue streams. It will help in maintaining the liquidity of the cryptos. You can choose revenue streams like Blockchain, Crypto Wallet Service, Virtual Currency exchanges, fiat loans, crowdfunding, etc.
• Access to Multiple Order Books: The traders must try versatile exchanges for crypto trading instead of one platform. It will help in maintaining the liquidity levels of your cryptocurrency.
• Advance Feature of Stop and Limit Order: Include the modern trading features like stop and limit order. It helps investors to buy or sell stock at a specific price and boost their profitability.
• Intuitive Interface and Mobile App: User-friendly and modern interfaces give a smooth experience to investors. Besides, a feature-rich mobile app will facilitate them to buy or sell stock from anywhere.

Here are some of the take away on the liquidity issue of white label crypto exchange platform.

• Long-term investment, the expectation of high profitability, lack of cryptocurrency pairs, and poor interface are primary reasons for creating liquidity issues.
• Lack of liquidity creates swings in the prices and volatility issues.
• Feature-rich and secure crypto exchange with modern UI can encourage investors to trade more frequently.

The ease of crypto trading will circulate cryptocurrencies in the market and stable the liquidity levels. It is essential to choose the best white label crypto exchange platform offered by Espay. It provides distinct options to the traders, and they can buy and sell the cryptos quickly. Besides, Espay offers the crypto exchange businesses to customize the solution based on their traders’ requirements.