Hi folks,
I'm launching a new exchange and a bit stuck about providing liquidity.
I'm aware and understand technical details related with connection to a third party exchange order book.
But I want to minimise risks, losses and keep a storage in balance.
Could you suggest me links or explain how to built a proper spread and how to cover expected losses by arbitrage?
From my experience, the best ways are:
1. Obligatory: Having an API, for market makers.
2. Highly recommended: 0% or slightly negative fees for 3-6 months.
3. Highly recommended: Willing to accept not so popular coins, listed in just 1-2 exchanges.
4. Recommended: Signature campaign or other form of targeted crypto advertisement.
1. Everyone knows about it, without an API, people can not buy and sell at certain price.
2. I prefer Serpens66 idea; 0.1% taker and -0.1% maker or maker 0% and taker 0.3%.
3. It will be a trading platform, usually exchanges only list few most famous-tradable coins
4. Agree, any kind of advertising will make people aware of your exchanges, especially with several advantages offered.
5. Do not charge for deposit, and apply 1% fee for cash or coins withdrawal, do not take more than 1%.