Bitcoin Forum

How we can get liquidity for crypto to crypto in an Exchange??

Liquidity increases if more and more people trade a certain trading pair. How do you increase it? It should come organically if people need or want to trade that specific coin/token. Some small exchanges conduct these so called "trading competitions" to temporarily increase liquidity.

Mainly, the cryptocurrency exchange should have a considerable number of users to get the liquidity for a particular trading pair. This is because when the number of users of the exchange increases, it will make more buyers and sellers.

The other way to have increased liquidity in an exchange is attracting market makers to the exchange by giving competitive trading fees for giving liquidity to the exchange.

Trading incentives for traders such as reduced fees and trading competitions also help to increase the liquidity.

Therefore, as an individual you cannot increase the volume of an exchange. It's up to the exchange to increase the liquidity by doing the tasks mentioned above.

First thing is the coin should be in a liquid exchange, if possible to get listed in Binance, they should take chances though listing fee is really not that cheap.
As long as the coin is already in a liquid exchange, next thing to do is to market the project, by giving updates that will make people think the project has a potential, even hype would actually do if the team knows how to hype investors.

Liquidity can be attracted when an exchange has good coins trading on their platform, and the security of the exchange has a good record track and how they manage their customers coupled with their transaction fees and the overall time it takes to withdraw asset.

Liquidity should increase with the number of traders (or speculators) using the platform.
New exchanges usually offer either reduced fees or no fees at all for specific periods of time to get the traders come there.
Some others offer certain bonuses in coins that cannot be withdrawn, but can be used to pay the trading fees.

I guess that some liquidity providing bots can be also be made in a similar way as the arbitrage bots work, just their owner has to configure them very well in order to not lose too much money and also stay at good prices for the coin pairs.

I agree comments, i want to add if you want to trade and monitoring liquidity, dont waste your time and money with low volume coins.

more ppl trade / Market makers come in = More liquidity

It's said that liquidity pool can be strengthened if an exchange has a healthy cash flow, but how to have a heathy cash flow?

I agree, that's why some exchanges set maker fees lower than taker fees (maker-taker fee structure)
they do it to draw interest of traders to add more liquidity to order books
and tiered fees based on user's monthly trade volume helps to keep user loyal to an exchange

only traders can directly increase liquidity by placing buy/sell orders in the order books
the exchange can set appealing rules or give bonus to encourage them to place orders

Okay, many of you have said this but this is incorrect. In a way.

When we invest in any crypto asset we essentially lock our funds. It is the ease with which we are able to unlock the investment into readily spendable and consumable currency, is what liquidity is inferred to.

Simply having a lot of traders exchanging one shitcoin into another shitcoin does not mean it is liquid.

To increase liquidity, you need to create a large order, preferably paired with a high liquidity asset or a stablecoin on the market books that essentially chomps down a percentage of the entire market order for that particular asset. 5% is the minimum per asset per day when I begin to consider that an asset is minimally liquid.

This is where the game changes yet competition on exchangers is pretty tough.So making some alterations or change on maker-taker fee would be crucial.
If they do set out lower then this would be main appealing to traders yet anyone do really able to achieve maximum profitability without being affect by these fees.

A listing on a larger exchange can increase the liquidity of the coin. Another factor is the number of outlets that accept cryptocurrency. The more actively the coins are used by companies, shops, real estate agencies, travel agencies and other structures, the greater the turnover. Accordingly, liquidity is also growing.