By Otar Topuria
By Tamta Suladze

Finding a Crypto Liquidity Provider in 2024

How to Find a Crypto Liquidity Provider in 2024

It is impossible to overstate the significance of smooth trading operations in crypto. The year 2024 emphasises how important it is for crypto projects looking to succeed to choose a reliable liquidity provider. In this article, we will offer thorough guidance on what to consider when picking a crypto liquidity provider that will set the groundwork for success. 

Key Takeaways

  • Crypto projects need to collaborate with reputable LPs to guarantee seamless trading processes and a steady supply of digital assets.

  • LPs are crucial for lowering price volatility, promoting successful price discovery, and guaranteeing smooth market operations.

  • Working with LPs reduces the spreads, deepens your liquidity channels and mitigates your risks in the volatile market. 

The Crucial Role of Crypto Liquidity Providers

role of crypto LP

Before we go on to see the features that various LPs provide, let’s break down several elements that we should keep in mind:

Essential Functionality

By adding assets to the financial markets, LPs allow traders to execute buy or sell orders with minimal price fluctuations. Individual investors and specialised companies are examples of liquidity providers. They allocate a portion of their holdings to an exchange's order book. They aim to increase price discovery and market efficiency by reducing the difference between purchasing and selling prices.

Liquidity providers collaborate with brokers and other market players to guarantee prompt and effective trade execution. This cooperation preserves the market's stability and reduces risk.

Market Dynamics

Brokers and exchanges can benefit from working with a crypto liquidity provider in several ways, particularly when it comes to controlling the price volatility of cryptocurrencies. Among these advantages, we can highlight several:

  • Narrower Spreads - Brokers can give their clients tighter spreads by collaborating with LPs. Brokers can acquire the most competitive prices because of their relationships with a wide range of liquidity sources, including large banks and financial organisations.

  • Enhanced Liquidity Pools - With access to bigger liquidity pools, brokers may handle bigger trades with less impact on the market price, reducing price slippage.

  • Better Risk Management - Because of the cryptocurrency market's volatility, price swings can be dangerous. Liquidity providers help brokers mitigate these risks by lowering the possibility of market volatility and guaranteeing that there is always a counterparty for transactions.

  • Price Stability - LPs are crucial in keeping the crypto market stable by supplying a constant flow of trades and prices. This stability is crucial because it creates a reliable and effective trading system.

Fast Fact

The fall of Lehman Brothers, an investment bank, on September 15, 2008, was a turning point in financial history that profoundly affected global financial liquidity and sent shockwaves across the financial system and beyond.

Top 10 Crypto Liquidity Providers in 2024

Capital must flow into the cryptocurrency market steadily and continuously. Finding a reliable crypto liquidity provider might be a challenge in 2024, as there are so many alternatives. Our list will help guide you through it:

  1. 1. B2Prime

B2Prime LP

B2Prime is a Prime of Prime liquidity provider that specialises in crypto CFDs, FOREX, Equity Indices, Commodities, Precious Metals, and NDFs as CFDs. It provides a wide range of services to institutional clients, hedge funds, brokers, and cryptocurrency trading platforms. 

B2Prime operates under two jurisdictions: CySec and FSC Mauritius. B2Prime Cyprus is specifically designed for institutional market players and corporate clients within Europe. Meanwhile, B2Prime Mauritius caters to institutional market players and corporate clients outside of Europe. 

Notably, the company recently secured initial approval from Dubai’s VARA, granting the right to cover activities such as "Virtual Asset Exchange Services," "Virtual Asset Broker Dealer Services," and "Virtual Asset Transfer and Settlement Services.”

  1. 2. Interactive Brokers Crypto

Interactive Brokers Crypto makes low-commission cryptocurrency trading possible, with commissions of 2% of the transaction value. Important digital assets are available for clients to trade and store. 

The platform allows round-the-clock trading and supports holdings in US dollars within cryptocurrency accounts. In order to provide security and a consistent trading experience across different asset classes, such as stocks, options, and ETFs, Paxos Trust Company manages all trading and storage.

3. Wintermute

wintermute LP

Wintermute is skilled in creating markets for digital assets using trading algorithms. With backing from venture capital firms, it touts agreements with more than 50 cryptocurrency markets, including Binance, Coinbase, Uniswap, and Bybit. 

In order to promote liquid and effective markets, Wintermute offers services that span both decentralised and centralised exchanges as well as market-making pools. These services include trading analytics, product testing, advisory services, OTC and treasury management, and more.

  1. 4. Leverate


Leverate offers services and technology to brokers in need of crypto liquidity solutions. It provides the Sirix trading platform, risk management solutions, and premium services. 

Accurate risk hedging and a cooperative trading environment are the main features of Leverate's offerings, which include the LXSuite for universal business solutions and social trading capabilities. Leverate improves trading decision accuracy and risk management techniques by leveraging Straight Through Processing (STP) technology.

  1. 5. Gotbit


Gotbit, a cryptocurrency market maker founded in 2017, has a distinct strategy. It utilises advanced algorithms and a sizable trading desk. Through high-demand solutions, Gotbit helps clients achieve profitability by supporting 64 centralised and decentralised exchanges. 

Serving a broad clientele that includes active traders, it integrates a computational core with market-making bots and a macroeconomic and theoretical market analysis approach.

These suppliers will be significant in the financial markets in 2024 thanks to their vital liquidity solutions. They ensure the stability, effectiveness, and vibrancy of the cryptocurrency trading ecosystem by forming links between brokers, financial institutions, and other market participants, as well as deep liquidity pools and financial networks.

6. PrimeXBT


PrimeXBT distinguishes itself as a full-service liquidity provider focusing on cryptocurrencies, providing cutting-edge trading instruments to a worldwide customer base.

The platform serves traders seeking diversification in their investment portfolios by supporting a large range of assets. Leveraged trading on popular cryptocurrencies is one of PrimeXBT's services that gives customers the chance to intensify their trading tactics. 

  1. 7. CoinRoutes

Coinroutes LP

With its algorithmic trading software, CoinRoutes has established a position for itself in the cryptocurrency liquidity provision market. The platform optimises trade execution across several exchanges by offering real-time data and intelligent order routing features. 

CoinRoutes provides solutions that increase trading efficiency and reduce slippage to a broad spectrum of market participants, including institutional investors and active traders.

  1. 8. Bequant


Bequant is a prime brokerage and cryptocurrency exchange that provides extensive liquidity for various digital assets. Its prime brokerage division serves institutional clients as a one-stop shop by offering leveraged trading options, secure custody, and direct market access. 

Bequant's exchange is renowned for its strong infrastructure, which guarantees trustworthy trade execution and settlement. The company provides clients wishing to access the cryptocurrency markets with peace of mind by prioritising security and regulatory compliance.

  1. 9. DV Chain

DV Chain

As an over-the-counter (OTC) liquidity provider, DV Chain offers trading services for various cryptocurrencies. The company offers liquidity on demand by facilitating smooth purchase and sell transactions for individual and institutional investors. 

The knowledge of DV Chain is also used in market creation, which helps maintain the cryptocurrency markets' efficiency and stability. Customers find that the company offers competitive pricing, maintains secrecy, and has a thorough understanding of market dynamics, which makes it a top option for individuals looking for trustworthy cryptocurrency trading partners.

  1. 10. XTRD

XTRD provides cross-exchange trading software and institutional-grade liquidity provisioning to introduce conventional financial market solutions to the cryptocurrency arena. By combining several exchanges into a single interface, the platform allows traders to use arbitrage tactics more effectively. 

XTRD's technology consolidates liquidity from leading cryptocurrency exchanges to minimise slippage and enhance order execution. 

Why Should You Decide to Partner Up with Crypto Liquidity Providers? 

benefits of using LPs

As we saw, any company choosing the best liquidity provider is spoiled for choice.  The following are the main benefits that brokers and exchanges get from working with top LPs that may help in making a final decision.

Access to Broad Liquidity Pools

By facilitating market participants' access to broad liquidity pools, LPs guarantee that high trade volumes can be completed with little to no effect on the price of the market. This is necessary to keep the market open and allow for the speedy purchase or sale of assets.

Better Trading Execution

When orders are provided by a trustworthy cryptocurrency liquidity provider, they are carried out quickly and at the best rates. This efficiency is essential for traders and institutions hoping to profit from market changes without suffering delays or slippage.

Market Stability

LPs support the general stability of the cryptocurrency market by offering a steady supply of digital assets. Retail traders' confidence must be preserved, and institutional investors must be drawn in by this steadiness.

Risk Mitigation

One important aspect of risk mitigation related to the volatility of the cryptocurrency market is the involvement of liquidity providers. They guarantee that trades always have a counterparty, which lowers the possibility of price disparities and shields market players from unanticipated market moves.

Competitive Advantage

Organisations collaborating with LPs can give better pricing and competitive spreads to their clientele. In the highly competitive financial services market, this might be a big differentiation that draws in more customers looking for affordable trading solutions.

Regulatory Compliance and Security

Reputable liquidity providers provide partners and their clients with a safe environment for trading activities while operating within the bounds of regulatory obligations. Compliance is essential for the crypto market to remain viable over the long run and foster trust.

Working with a crypto liquidity provider is not just a wise tactical move but rather a vital strategic requirement for anyone hoping to prosper in the crypto industry in 2024 and beyond. 

Exchanges and brokers may provide their customers with better trading experiences by improving their trading conditions and staying ahead of market trends.

Final Remarks

In 2024, cryptocurrencies must adapt to their inherent volatility, with liquidity providers leading the way. They offer lower spreads and improve liquidity pools, enabling large-scale trades without significant price swings. 

Working with a crypto liquidity provider is crucial for risk reduction, price stability, and gaining a competitive advantage in the financial services industry. Reputable providers provide security and regulatory compliance, building a reliable trading environment and ensuring market operations' long-term viability. 

Using automated market makers, brokers, exchanges, and financial institutions can explore new avenues for trading efficiency, stability, and expansion. This innovative function of cryptocurrency liquidity providers lays the groundwork for creative thinking and smart alliances to maintain market vitality and effectiveness.


In cryptocurrency, who offers liquidity?

An individual or organisation that supplies buy and sell orders to a decentralised finance (DeFi) project to boost liquidity is called a liquidity provider (LP). 

Can I deal with a liquidity provider directly?

Trading Forex through banks or LPs directly is known as "Straight Through Processing" (STP) or "Direct Market Access" (DMA) trading. Nevertheless, obtaining direct access to banks and liquidity providers necessitates a more intricate and institutional-level configuration.

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