Two Ways for an Exchange to Get Liquidity


When creating a cryptocurrency exchange, you need to ensure that it will fulfill the customers’ needs, i.e., provide uninterrupted access to trading and high asset liquidity. No one wants to see their trades rejected over and over again due to lack of supply and demand. Both traders and brokers need a wide range of trading pairs available for exchanging, and the task of the exchange owner is to ensure their availability.

To increase the market depth and make trading conditions more attractive for users, it is important to know where to find a source of liquidity and what solution to choose for the best results. There are two ways to provide the exchange with sufficient liquidity.

Liquidity Bridge


A liquidity bridge can safely be called a basic tool: this special software gives traders direct access to the largest investment markets with a wide variety of tools and offers.

First of all, the bridge should provide a better mechanism for aggregating supply and demand. But if we discuss this tool from the viewpoint of business tasks, it becomes important to assess the long-term reliability of this technology. Quality software must have a stable architecture to guide and process trades smoothly.

Another important quality is scalability. The program must be able to withstand the load with as much as 10 or 100 times more users. Reliability under such conditions means the preservation of complete functional efficiency.

Liquidity aggregator


Powerful aggregators with built-in mechanisms for “collecting” liquidity from all possible sources are required to ensure greater liquidity.

Unlike a bridge, where the process of receiving offers is more linear, the aggregator acts as a kind of distribution center or hub that processes liquidity and distributes it among exchange participants. The exchange owner can independently set distribution parameters and conditions and, in fact, manage the flow of applications in his own interests.

Despite the apparent complexity of liquidity aggregation, simple architecture allows you to get stable liquidity with no pauses in quoting or server restarts.

What to choose


When choosing software, key technical characteristics automatically come to the fore.

● Easy integration. The plugin must be compatible with MT4 and MT5.

● Required capacities. If your own server is not enough, you need to be hosted on the provider’s server in a data center.

● An environment that’s easy to manage and operate. If you need to waste a lot of time on figuring things out, it’s a bad option for a successful business.

You can opt for an even easier method, rather than rack your brains: contact software suppliers, get detailed advice and a ready-made offer.

How to integrate a solution into your business

When choosing a software vendor, look for a company that has a comprehensive approach to implementing its solutions. Full support is required at all stages of program use, including:

● assistance in choosing integrated software;

● setup assistance;

● clear instructions for managing and working with the platform;

● one-touch technical support in case of problems.

And of course, it is important to have the right liquidity aggregation solution that will satisfy all your business requirements and ensure the maximum efficiency of exchange operation.