Introduction
Liquidity has been a key focus for cryptocurrency exchanges for years. But what exactly does this mean and why is it so important for an exchange? Let us figure out here.
Liquidity represents one of the most important concepts that everyone needs to understand when trading or investing cryptocurrencies. Liquidity is the degree to which a particular asset can be quickly bought or sold without affecting the general stability of its price.
In simplest terms, liquidity refers to the ability of an asset to be converted into cash easily.
The most liquid asset in existence is cash since it is very stable and can be readily accessed and easily spent on buying, selling, paying debts or meeting immediate wants and needs. Therefore, cash is commonly used as the standard to evaluate an asset’s liquidity.
On crypto-to-crypto exchanges, liquidity means you can trade cryptocurrencies to common coins like Bitcoin, Ethereum or stable coins like USDT readily and easily.
Why Liquiditex is a good choice for traders?
There are so many cryptocurrency exchanges all over the world. Traders will be confused when choosing a high-qualified, high security but also high liquidity exchange.
Focus on liquidity, Liquiditex will offer traders 3 main advantages.
Liquidity:
We know that liquidity matters. It keeps the order books deep and reduces volatility. All traders need liquidity to function.
We are endeavoring to make our volume plentiful, verifiable and real.
Simplicity:
Simple is the best. Liquiditex has a friendly user interface and an easy-to-follow trading guideline.
If you are new to the crypto world, trading crypto assets on Liquiditex is really easy to use.
On the other hand, if you are pro-trader, Liquiditex helps you simplify your trading work to make it more effective.
Security:
We take security seriously. 95% of the asset on Liquiditex is in Cold Storage. We keep your assets far away from the Internet, to make it impossible to touch. As traders, we aware that security is the most cared issue of the world. With Liquiditex, your assets, your money are the most concerned of us.
Beyond 3 main advantages, there are many interesting things you can have with Liquiditex. As a global cryptocurrency exchange, we provide multi-languages.
We will support English, Chinese, Spanish, Japanese, Korean and Vietnamese. More language will be added in the future. So, whatever nationality you are, you can trade with us easily, simply and securely.
What makes Liquiditex different from other exchanges?
Cryptocurrency exchanges are drivers of the field. As Binance first offered Binance Coin (BNB), we moved to the time of exchange coins. When the first project had a token sale on an exchange, we switched to the time of IEOs.
It’s an intense race for the later competitors. Liquiditex knows that we must bring you more advantages than the others.
Why is liquidity so important?
A higher liquidity exchange is preferred since it brings about the following advantages.
1. Liquidity offers fair prices for trader
Prices of crypto assets are much fairer for traders due to a large number of buyers and sellers.
For instance, a robust marketplace with high trading activity ensures that sellers would sell at competitive prices while buyers would bid at higher prices, thereby creating an equilibrium market price that is equitable for all. A stable equilibrium price is a sign of market stability and ensures that traders are not disadvantaged.
2. Liquidity helps market stability
High liquidity ensures that prices are stable and will not be prone to large swings in the market due to large trades.
For instance, it is very easy for crypto-whales to significantly influence prices in illiquid markets that have little market activity. A single buy or sell order would create large swings in the cryptocurrency prices, which contributes to increased volatility and risks for the general market. On Liquiditex Exchange, prices are stable enough to withstand large orders due to the presence of many market participants and their orders.
3. Liquidity offers short time trading
It’s much more convenient and easy to buy or sell crypto in a liquid exchange since your buy or sell orders would be filled much faster due to the greater amount of buyers and sellers.
4. Liquidity increases accuracy for Technical Analysis
Technical Analysis (TA) is based on historical prices and the use of technical indicators and charting patterns to predict future prices. TA is a widely-used methodology in understanding the general market and trading.
Price and charting formation in a liquid exchange is more developed and precise, thereby enhancing the accuracy of TA.
What drives liquidity in crypto?
1. An open market
An open market means that the crypto assets can be easily traded on multiple exchanges.
Many financial gateways allow you to convert crypto assets you accumulate on Liquiditex into your currency and then withdraw to your cash wallets.
As the industry expands, we’re likely to see more platforms that allow people to integrate crypto into everyday finance, such as shopping gift cards or loyalty points.
2. Buyers and Sellers
Liquidity exchanges rely on participants who are ready to buy and sell assets. Increased trading activity ensures that sellers sell at competitive prices while buyers bid at higher prices, creating a relatively stable equilibrium.
In illiquid exchanges, there are fewer participants to take the other side of a trade, so more time is required between placing an order and the order being executed after a buyer or seller has been found. During this delay, an asset’s price may change (you know how volatility the crypto price is), resulting in a mismatch between your order price and the current market price.
The Liquiditex Token (LEX)
You know what, our native coin called Liquiditex Token (LEX). LEX is issued on the Ethereum network with the ERC-20 token standard.
What is LEX used for?
Use LEX to pay any fees on Liquiditex Traders can use LEX to pay the following fees:
Exchange fee
Listing fee
White-label fee
Liquidity providing fee
And any other fee
Staking LEX
Instead of holding in your wallet, you can stake LEX directly on Liquiditex to get the following benefits.
Benefits for VIP staker:
Interest rate: 10% per year
At least 250,000 LEX are staked
3 months locking after releasing
7 days of activation
Discount 50% exchange fee (useful for bot trading, LEX payment…)
So on
Benefits for merchant staker:
At least 25,000 LEX is hold
Immediately activation
Immediately releasing
Discount 50% exchange fee (useful for bot trading, LEX payment…)
So on
Token allocation
- Web: https://liquiditex.com/
- White Wallpaper: https://liquiditex.com/images/whitepaper.pdf
- Telegram: https://t.me/liquiditex
- Internet: https://twitter.com/liquiditex
- Facebook: https://facebook.com/liquiditex
- Reddit: https://www.reddit.com/user/liquiditex
- Instagram: https://www.instagram.com/liquiditex.exchange/
Author Sengkuni
Bitcointalk Profile : https://bitcointalk.org/index.php?action=profile;u=2215475
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