The truth of Liquidity of Cryptocurrency markets.
Cryptocurrency Liquidity. Table of Contents
- The effect of liquidity on cryptocurrency trading
- Why liquidity is important for cryptocurrency trading?
- Solution to Cryptocurrency Liquidity Problem
- IronX Providing Next-Generation Solutions
- Lack of liquidity in cryptocurrency exchanges
- Fiat deposit and withdrawal restrictions
- Lack of advanced technology interface
- Why Crypto is more attractive than Forex?
- What is a blockchain?
- Why is blockchain emerging?
- Application of blockchain technology
- Cambridge University Report: About the Cryptocurrency Industry
- Millions of new subscribers, but still passive
- Highlights of the University of Cambridge report
- Greater passage to existing financial gateways
- The importance of FIAT funding to cryptocurrency users
- Fiat vs Crypto currencies
- FIAT funding through the IronX cryptocurrency exchange
The effect of liquidity on cryptocurrency trading
Big volatility is an unfortunate reality in the cryptocurrency market, and liquidity issues have always been raised among investors around the world.
The cryptocurrency market exceeded 800 billion USD as of January 2018, then fell sharply at the beginning of 2018, and then began to rebound again, exceeding 200 billion USD as of September.
Liquidity refers to the ability to easily convert holdings into cash without affecting general price stability.
In the case of cryptocurrencies that have large liquidity, it is true that there are a lot of people holding and interested in it, so it is more favorable for buying/selling, so liquidity is an important consideration for investors.
Liquidity can be affected by the following factors: volume, cryptocurrency exchange, lack of oversight, country-specific cryptocurrency approval.
Why liquidity is important for cryptocurrency trading?
1. Reasonable price can be provided
In a high liquidity market, there are many buyers/sellers, so IronX can offer you a reasonable price.
In the cryptocurrency market where transactions are active, it is possible to sell at a competitive price, and buyers are willing to purchase at a high price, creating a balance in the market.
2. Market stability
When liquidity is high, the price remains stable and there is no price swing caused by large transactions.
Cryptocurrency giants, individuals, and institutions with various cryptographic assets can affect the actual price, which can increase the volatility and risk of investors.
In a highly liquid market, prices are stable enough to withstand such big trades.
3. Fast transfer
In markets with high liquidity, because buy/sell orders are made quickly due to a large number of investors, it is easier and more convenient to trade the cryptocurrency of your choice.
In a volatile market environment, the time spent on trading is an important part.
4. Accurate technical analysis
Technical analysis means predicting future price movements by identifying past prices and trends.
This is an analysis method widely used to understand cryptocurrency transactions.
In a highly liquid market, cryptocurrency charts and price credibility increase, allowing better-informed investment decisions.
Solution to Cryptocurrency Liquidity Problem
IronX cryptocurrency exchange was developed with a focus on liquidity to provide a simpler and more comfortable transaction for not only first-timers but also existing investors.
The exchange was created as a joint venture between IronFX Group, which has a global online trading platform that has won multiple awards in connection with top financial institutions, and EmurgoHK Group, a leader in blockchain technology.
The liquidity of the IronX exchange will be sufficiently secured by allowing customers to move naturally to the IronFX online trading platform, and by listing the ADA coin, which has achieved great success by the EmurgoHK Group, on the exchange.
The main goal is to link with the latest blockchain technology by adding flexibility to existing trading platforms that are already conveniently provided.
The IronFX Group’s wide range of trading products and world-class banking and payment methods will enable IronX Exchange to become the premier exchange.
The IronX Exchange is under the supervision of the Estonian Financial Intelligence Agency and will provide free deposit and withdrawal functions via both fiat and cryptocurrency.
It is also currently under license acquisition in Gibraltar and Malta.
IronX Providing Next-Generation Solutions
IronX Providing Next-Generation Solutions to Solve Major Cryptocurrency Problems.
The digital asset trading industry is struggling with various problems that are hindering growth, from the lack of supervisory regulations to the lack of liquidity in cryptocurrency exchanges.
In order for the cryptocurrency industry to become a legitimate global industry, it is necessary to solve these problems.
IronFX, which has multiple award-winning online trading platforms, and EmurgoHK, the creator of the Cardano blockchain, joined forces to establish the IronX Exchange.
Based on the accumulated experience and efficiency, IronX will narrow the gap between existing finance and cryptocurrency by solving problems that exist in the cryptocurrency industry.
Now let me tell you how IronX is going to solve a variety of current problems.
Lack of liquidity in cryptocurrency exchanges
Emerging cryptocurrency exchanges are unable to provide dynamic order booking capabilities.
If buyers and sellers are not constantly updated, customers who want to start trading new cryptocurrencies will have no choice but to hesitate.
This results in a lack of liquidity in the market and remains a challenge for the cryptocurrency industry to solve.
Occasionally, you will experience a lot of slippages, which is also a factor that makes digital assets less attractive.
Through a platform linked to the IronFX Group, IronX Exchange will naturally allow you to live in the FX market with abundant liquidity available globally along with existing online trading.
The exchange is designed to process more than 1 million orders per second, providing new traders with an active and dynamic database.
Fiat deposit and withdrawal restrictions
In particular, new starters often have difficulty depositing and withdrawing because they do not have cryptocurrency.
Since most cryptocurrency exchanges do not support fiat deposits and withdrawals, it is a great wall for those who want to start anew.
IronX Exchange provides smooth fiat deposit and withdrawal through linkage with world-class cryptocurrency-friendly financial institutions.
Lack of advanced technology interface
The presence or absence of advanced technology optimized for the exchange will have a great influence on trading activities.
Sometimes it’s too complex for new customers to use or lack adequate security systems.
IronX will provide an advanced platform that has been carefully designed and built for both existing and new customers.
This platform includes an ultra-high performance design and error detection system, HFT support system, secure transaction mode, encrypted TLS connection, and Google two-factor authentication to process global order requests.
Why Crypto is more attractive than Forex?
Blockchain technology has existed for over 10 years.
Beginning in 2008 as a medium for secure, untraceable transactions, blockchain technology is evolving to implement the technology in most industries around the world, from healthcare to voting.
According to a survey by PwC, a consulting firm specializing in accounting, 84% of 600 employees in 15 sectors said they were positive about their employer’s adoption of blockchain technology.
What is a blockchain?
Don & Alex Tapscott, an author of Blockchain Revolution, defines it as “a digital ledger of intact economic trading that can be programmed to record virtually any value, not just financial transactions.”
There is no centrally controlled server, no management entity, and records are recorded in all nodes of the network.
In order to carry out or carry out a sale, an agreement between the respective Northerners is essential.
Why is blockchain emerging?
Most of them are used in modern security systems and data exchange programs.
The data on the blockchain is stored simultaneously on thousands of participating nodes or computers, and there is no single user or entity under full control.
This approach eliminates the risk of single-point errors and requires hackers to access and change data on all systems simultaneously.
Data change is essentially impossible because all nodes must agree on it.
This eliminates the possibility of fraud due to alteration or corruption of data stored on the blockchain.
Some traders are still concerned about crypto trading.
Application of blockchain technology
Blockchain is already applied in financial services, retail management, insurance, organization management, healthcare, and real estate.
Next, let’s look at the benefits of using blockchain technology.
- Liquidation and payment system
- Payment system
- Digital Identity
- Property ownership
- Health record management
- Startup crowdfunding
- Supply chain management
In order to use a blockchain solution, you need a cryptocurrency that will function as a currency in a specific blockchain.
With the popularity of blockchain and crypto (Crypto), the public gradually began to find ways to benefit from digital currency.
Therefore, as the global cryptocurrency transaction surged, the demand for exchanges increased.
However, many exchanges created by this trend have many challenges to solve.
Cambridge University Report: About the Cryptocurrency Industry
Cambridge University released its second report on cryptocurrency in December 2018.
This report contains an in-depth analysis of the cryptocurrency market and important findings on various structural changes, including how the cryptocurrency market has changed over the years.
Millions of new subscribers, but still passive
Through this report, it was confirmed that more than 35 million new accounts were registered despite the reduction in the overall market size, and experts noted that this is proof that the cryptocurrency market continues to grow.
IronX Exchange was established for those who want to participate in cryptocurrency trading but were hesitant due to the difficulty of using existing platforms and trading platforms.
Many people are passive about participation for this reason, and according to this report, despite many account registrations, only 38% of them have experienced real transactions.
IronX wants to provide a simple, user-friendly, and secure platform with features suitable for both beginners and experts.
Through this platform, more people will be able to access the cryptocurrency world and will have a positive impact on market liquidity.
Highlights of the University of Cambridge report
The University of Cambridge’s second Global Cryptoasset Benchmarking Study noted a number of interesting facts about the cryptocurrency industry.
First of all, it was announced that Bitcoin’s death rumor was quite exaggerated.
In fact, 57% of companies provide integrated support for Bitcoin and Ethereum to their customers and are gradually introducing cryptocurrencies to diversify payment methods.
According to the report, the number of companies that support various coin services has been identified as a trend that continues to increase from 47% in 2017 to 84% in 2018.
Compared to other coins, Bitcoin has been steadily increasing its transaction size on average since 2016.
In addition, the report analyzes that in 2017, the cryptocurrency industry was bubbled mainly due to widespread media coverage.
However, it is judged that it is still too early to judge the potential of the coin, which has a large market size, as it is.
The cryptocurrency industry is growing at a fast pace, and a growing number of self-regulatory measures are also in place.
The market is based on compliance with existing country-specific regulations and is expanding it to create new regulations.
This will help the market grow in the future through the incorporation of safer advanced technologies.
Greater passage to existing financial gateways
It was confirmed in this report that the cryptocurrency asset system is increasingly being connected with the existing financial system, and the provision of a gateway based on clear regulations will make the movement between Fiat and cryptocurrency more smooth.
However, the smooth linkage and trading of Fiat and cryptocurrency are still available only on some exchanges, of which IronX is the world’s first fully regulated cryptocurrency exchange.
IronX Exchange has created a DLT license-based exchange environment through a partnership with EmurgoHK.
This will allow IronX to provide an efficient and secure trading environment for both Fiat and cryptocurrency trading.
As a futures company with diverse global assets, IronFX Group will be able to diversify its trading portfolio through natural linkage with exchanges.
The Cambridge Report was prepared after a survey of 180 global companies in 47 countries with 75% global activity in digital assets.
As the topic of this report shifts from “cryptocurrency” in 2017 to “cryptocurrency assets” in 2018, it can be concluded that the digital assets sector continues to grow and diversify.
The importance of FIAT funding to cryptocurrency users
Cryptocurrency exchanges offer more ICOs and continue to encourage market participation.
The speed of this market is so fast that many cryptocurrency companies are trying to attract more investors by extending the public sale period.
In addition, countless types of coins and tokens are pouring out, which makes even experienced cryptocurrency traders confused.
So what about new cryptocurrency investors? Demand generates supply, but supply does not generate additional demand.
As this is the only way to meet the need for new investments, it is an essential way to increase market participants across all industries.
One of the important ways to attract new users and enter the cryptocurrency market is the FIAT (fiat currency) to cryptocurrency conversion service.
Fiat vs Crypto currencies
Fiat is a traditional currency that people use in their daily lives.
These currencies are susceptible to global economic conditions and political events, so government regulation and banking continue to interfere.
Cryptocurrency is based on decentralized blockchain technology.
The most important factor defining the value of cryptocurrency assets is the liquidity of joint management created by investment funds. To put it simply, the price of a token depends on the funds of the investors who subscribe to the token.
The government guarantees that all citizens use the same currency. This creates liquidity for Fiat currency.
But still, the amount of this circulating currency is strictly standardized and varies in value depending on the state’s position in the global economy.
On the other hand, cryptocurrencies are more independent and have a limit on the number of circulating and increase in value depending on the amount invested.
Bitcoin, for example, has a market capitalization of $92 million, while Ethereum holds more than $17 million.
For reasons such as market capitalization and the number of coins issued, Bitcoin is currently priced at 5200 USD and Ethereum is currently priced above USD 166.
Before entering the cryptocurrency market, it is necessary to purchase a standard cryptocurrency such as Bitcoin or Ethereum.
Due to the nature of the cryptocurrency market, which fluctuates more than hundreds of times a day, you may lose or benefit from price fluctuations at the time of purchase.
If additional conversions between FIAT funding and cryptocurrency are freely available, they will be able to convert them to suit the preferences and circumstances of investors.
In addition, if there is no time limit on the ownership of existing tokens by investors, it will be applicable to various investment methods.
In addition, it will be possible to easily and conveniently withdraw money in the currency preferred by investors such as USD.
FIAT funding through the IronX cryptocurrency exchange
Our IronX cryptocurrency exchange has a formal regulatory license from Estonia FIU, and is securely traded under the supervisory management system of cryptocurrency leaders HOSO and Hacken.
In addition, customer support services are provided in more than 30 languages, making it convenient for customers to use.
Through IronX’s state-of-the-art trading platform, you can directly convert between FIAT currency and cryptocurrency, and at the same time, you can safely enter the cryptocurrency market through smooth FIAT deposit and withdrawal.
IronX is offering 10 IRX airdrops to customers who have signed up through IRONX Official Website and completed the KYC process, and you can use the IronX trading platform, which allows trading between cryptocurrencies and various existing products.