Virtual coins and decentralised assets are becoming widely popular for businesses to accept payouts and for users to purchase products and services. These payment methods are easy to use and offer advanced security measures to keep user data away from the internet.

Therefore, launching a business in this sphere can be highly lucrative, given the dynamic nature of most cryptocurrencies and the increasing demand for trading Bitcoin. However, to launch a crypto brokerage firm, you need to find a crypto liquidity provider to supply your platform with tradable digital assets and ensure quick processing.

Let’s discuss what you need to know about finding a suitable crypto liquidity provider and what the big five names in the industry are.

How Do Crypto LPs Work?

Let’s shed some light on the importance of liquidity providers (LPs). 

These operators consist of financial institutions, banks and other monetary intermediaries that connect your platform with trading markets. In the crypto context, they offer access to liquidity pools and channels that enable you to offer crypto trading, buying, and selling using consolidated order books in the best market conditions.

By populating your crypto platform with liquidity and assets, prices become less volatile to increasing demands, offering the stability that every trader looks for.

Additionally, having sufficient crypto liquidity powers fast executions where a trading order is processed and settled in the shortest time possible to avoid security breaches and maximise user satisfaction.

The Search for The Best Crypto Liquidity Source

Offering crypto liquidity has become popular in the last couple of years, and cryptocurrency brokerages can find numerous providers who offer liquidity and market access. However, it’s important to consider these three factors when searching for a crypto LP.

License

Inspect the business permit of the candidate liquidity provider and ensure they obtain a proper license that guidelines their financial operations and a framework that aligns with your target market and area of service.

Working with a regulated crypto provider is crucial to attaining performance stability and longevity that will attract more clients to your platform.

Support

User preferences in cryptocurrencies change dynamically, and it is critical to cope with this changing demand accordingly and timely.

Therefore, find a cryptocurrency LP that offers access to a wide range of crypto coins, tokens, stablecoins and other tradable assets.

Scalability

It is highly recommended to find a cryptocurrency liquidity provider that accommodates your changing business needs. For example, if you want to upscale or downscale your operations. A non-scalable solution would require you to change your liquidity source every now and then.

However, a scalable crypto liquidity pool can be flexible whenever you need to scale your business and or change your transaction volume.

Best Five Crypto Liquidity Providers in 2024

After understanding the role of crypto LPs and how to find them, let’s review significant key players that you will most likely encounter when looking for a reliable source of crypto liquidity.

B2Prime

B2Prime is a Prime of Prime liquidity source that belongs to the B2Broker group, a leading provider of liquidity and technology solutions.

B2Prime offers deep market liquidity that aligns with startups and mid-sized companies that look for the best crypto liquidity sources to launch their business. This PoP model consolidates liquidity from tier-1 liquidity pools and channels and offers them at affordable prices.

With a wide range of crypto assets supported, B2Prime’s advantage is that it is highly compliant with international crypto regulations and has a crypto license in Cyprus (CySEC), Mauritius, and Seychelles.

Interactive Brokers Crypto

Interactive Brokers is another significant name in the crypto provision industry. IB Crypto offers liquidity and trading possibilities at low fees, starting with 2% commissions on a single order value. 

Interactive Brokers Crypto liquidity source supports a wide range of fiat and virtual currencies to help manage funds and assets efficiently.

Leverate

Leverate is an advanced liquidity and technology solution provider empowering brokerage firms that want to add crypto assets to their offerings. Leverate liquidity provision model includes reliable risk management tools and premium financial services.

Leverate LP supports crypto brokerage platforms with flexible investing models, such as copy trading strategies and risk hedging, that allow brokers to align with the changing user needs.

Gotbit

Gotbit provides liquidity through the market-making model. The company supplies brokerage firms with trading desks and algorithmic trading possibilities for brokers to participate in crypto trading and offer their clients the opportunity to buy and sell multiple crypto coins and tokens at affordable rates.

Gotbit is a convenient liquidity provider with various integration and automation possibilities.

Wintermute

Wintermute offers crypto brokerage firms liquidity by consolidating each trading order across a huge range of liquidity pools and order books. 

Each processed order is rerouted to find the best trading rates through Binance, UniSwap, PancakeSwap, Coinbase and more.

Wintermute liquidity offerings include CEX and DEX platforms, equipping them with advanced analysis tools, spot coin exchange, and financial assistance.

Conclusion

Liquidity is a crucial aspect of crypto brokerage platforms and exchanges that offer trading, buying and selling of digital coins. This allows brokers to accommodate investments across a wide range of blockchain-based coins and process transactions at fast rates.

However, finding a dependable crypto LP requires a thorough review of the best liquidity providers in the market and inspecting their licensing, level of support and platform scalability that ensure stable performance and business growth.