In the current market, crypto is an extraordinary asset. People have always considered crypto to be a volatile asset that is illiquid. Traders and users cannot change illiquid crypto into cash instantly, and due to this, it becomes difficult for people to invest further in crypto. They need to wait long before getting the results of their investments.
It is quite a rumble, and hence, many people consider investing in stocks rather than crypto. Also, the initiation of Bitcoin Unlimited and the Lightning Network to increase investment in Bitcoin failed. This arrangement has ended the hopes of potential investors in crypto.
Problems associated with illiquid crypto
According to research implemented by Glassnode, around 78 percent of Bitcoin is illiquid. The rest of the supply of Bitcoin is liquid, but that amounts to roughly around 4.2 million. About 14.5 million Bitcoins are unavailable. This high illiquidity is mainly due to big companies hoarding Bitcoin, as the research says.
Due to the illiquid nature of Bitcoin, a lot of issues have been detected:
- First, a crypto’s illiquidity causes a lot of volatility in the market wherein one cannot sell crypto at the point of demand. An imbalance occurs in the system, which causes losses for investors.
- Second, illiquidity results in a phenomenon that is termed slippage. The graph shows how crypto trading and slippage are related to each other and massive losses are caused on major exchange platforms including Binance.
The combined effect of high volatility and low slippage inflicts a significant loss on the people who are using the exchange. The reason behind this is that the user cannot sell the asset when he wants and at the price that he wants. He needs to wait for the confirmation.
How Aurix solves the problem of low liquidity
Aurix Ecosystem facilitates rapid transactions. Due to this incredible feature, people who lose money due to increased volatility can save a lot. Using Aurix, users will have the power to initiate as many transactions as they want within seconds.
Aurix Ecosystem also solves the slippage problems that cause investors to lose opportunities, profits, and even investments. The very responsive design has helped remove all the inconsistencies associated with crypto.
The user will not suffer any loss due to the faults of the system or the exchange. The decision he or she has made is correct, and the person will get the right outcome. There is no delay between order and its execution, and hence, no money is lost due to slippage and high volatility.
People have suffered enough due to the shortcomings of the exchange platforms that use outdated or inconsistent technology. Aurix stands apart as it aims to revolutionize the entire crypto industry by helping believe in crypto.
Aurix provides security and speed that solves significant issues of all the people who seek to invest in crypto. Crypto traders can now stop fearing because what they order is what they will get. Due to the great design and indestructible architecture of Aurix, users will have more control over profits without any interference.