Crypto Liquidity

Investors are seemingly flooding the world of digital currencies, with the number of cryptocurrencies in the market today exceeding the 22000 mark. As more digital currencies emerge, it becomes imperative to establish exchange ecosystems. For a long time, individuals have relied on centralized exchanges to swap their digital assets because of their vast amount of liquidity.  However, despite the liquidity levels and ease of accessibility, centralized exchanges have become insecure as people incur financial losses. Therefore, the focus is shifting towards…

In March 2010, the now-defunct bitcoinmarket.com started as the first and only crypto exchange. However, the growth of cryptocurrencies and the upsurge in tradable coins caused a rise in the number of crypto exchanges globally.   Exchanges have the aptitude to provide high liquidity to any crypto assets and offer faster and cheaper transfers. Although exchanges have fostered growth in the past three years, their instability is still a serious matter that hinders their growth. It is, therefore, important that…

The crypto industry has, for a long, been very unstable. Bitcoin, for example, has experienced episodes of very high liquidity, then later very low liquidity. Liquidity is the ability of an asset to be converted to cash.  Recently, however, the crypto world has seen the rise of crypto liquidity providers. So who are crypto liquidity providers, why do we need them, and what do they do? We will discuss all these in detail in the sections below.  Who are Crypto…