In cryptocurrencies, Liquidity refers to the ability to convert its digital currencies to fiat money without affecting its general stability of price. As liquidity is more important for all digital assets, this attracts the investors to the market. In case of bitcoin startups, Initially bitcoin exchange startup will don’t have the transaction data. Hence, the problem here is the users have no idea of what’s going there and less chance to do exchange or trade. To avoid this problem, liquidity data(i.e. transaction data) is the key. Take the trade data from popular bitcoin exchanges and implement in your exchange. It will give clear visibility and trusted signal about your exchange. This is done by the Liquidity API integration.
Since the High range of liquidity in the marketplace will create more advantages,
1.Fair price range - Due to a large number of buyers and sellers, the price range in the liquid market will be much fairer.
2.Quick transactions - The buy order and sell order in order book will be filled fast because of a greater number of market participants and thus allows more convenient and easy transactions.
3.Technical analysis - The technical analysis is the most commonly used method for understanding the crypto market and trading, involves in the study of the past price range of cryptocurrencies. The technical indicators are used to predict the price range of cryptocurrencies in a charting pattern.
- Market stability - High liquidity API ensures stable price which will not be affected by large swings that occur due to huge trading in the market.
If you are among those who are starting your journey in cryptocurrencies this information might be helpful. So if you are keen to understand more about liquidity API of cryptocurrency exchange development, read here -->