Cryptocurrencies are increasingly captivating the interest of both digital trailblazers and traditional investors. There’s a wave of enthusiasm towards initiating a crypto brokerage venture, potentially yielding lucrative returns. However, the cornerstone of achieving a thriving crypto brokerage enterprise is having a credible source of liquidity to support transaction operations. In this piece, we will look at the top five platform providers to consider.
Why Use Crypto Liquidity Providers?
A lack of robust liquidity can cause prices to experience sharp rises with hefty orders, impacting many traders and investors.
Crypto liquidity providers (LPs) hold an indispensable role as they increase asset accessibility and tame price fluctuations. They offer price quotes for brokers, which leads to an increase in supply, making markets less vulnerable to price fluctuations.
Liquid instruments increase the efficiency of matching orders, curbing slippage and guaranteeing trades are processed at precise prices. Consequently, this bolsters a venue’s attractiveness and draws a larger user base.
Best Crypto LPs in 2024
The advent of technology and decreased entry barriers have empowered financial institutions and crypto aggregators to provide an extensive array of services. This section evaluates the top five crypto liquidity providers, aiming to elevate your crypto brokerage experience.
B2Prime
B2Prime is a prominent prime-of-prime liquidity provider, offering extensive market access across cryptocurrencies, Forex, equity, indices, and commodities. They equip brokers with tier-1 funding channels, ensuring trading under favourable conditions. As a regulated entity compliant with CySEC and Mauritius regulations, B2Prime delivers prime-of-prime solutions both within and outside Europe.
Gotbit
Gotbit, a crypto market maker, provides algorithmic trading and trading desks to brokerage firms and investment banks, supporting over 60 crypto exchanges. Its automated services and crypto integrations cater to digital investors seeking convenient trading solutions.
Interactive Brokers Crypto
Interactive Brokers Crypto offers low-commission crypto trading, with rates starting at 2% of the order value, allowing users to trade and store a variety of crypto assets in both virtual and fiat currencies. Through Paxus Trust Company, it also expands its offerings to include stocks, options, and ETFs, streamlining trading activities.
Wintermute
Wintermute employs an algorithmic strategy to manage trades, efficiently distributing orders among various exchanges and brokers like Binance, Coinbase, and Uniswap to secure optimal rates. Its services extend across both centralised and decentralised platforms, providing diverse trading solutions, market analysis, financial advice, and more.
Leverate
Leverate provides brokerage and tech solutions for expanding into crypto assets, including a robust risk assessment tool and premium financial services. Their solutions enable crypto brokers to offer risk hedging and cooperative trading modes, adapting to evolving user preferences and trading styles.
Conclusion
Launching a crypto brokerage involves the challenge of sourcing liquidity to offer top trading conditions. With the rise of crypto liquidity providers, selecting the right one necessitates detailed research into their services, features, and prices to align with your goals.
