A trading cryptocurrency guide must provide reviews of all of the top crypto exchanges out there, so that you can find the best cryptocurrency exchange site for you. This review of Liquid consists of four parts: general information, fees, deposit methods and security.
Liquid is a cryptocurrency exchange that launched in January 2014. It has offices in Singapore but is actually regaulated and licensed by the Japaneses FSA (Financial Supervisory Authority). The fact that this exchange actually has a license to conduct cryptocurrency exchange operations is really a “feather in the hat”, and should add some level of comfort to its users.
It offers trading in a decent number of cryptocurrencies (174 different trading pairs at the date of writing this review, 20 December 2018).
With respect to liquidity, this is a strong exchange. When listing cryptocurrency exchanges after their 24 hour trading volume, the exchange is on place no. 22 on the date of writing this review. Their 24 hour trading volume was approx. USD 277 million. This is far better than most other cryptocurrency exchanges. Looking at the 30 day trading volume, the exchange is placed even better at the list (top 20), with a 30 day trading volume of approx. USD 4 billion. From our understanding, if you’re looking only at the fiat-to-BTC trading volume, the only exchange with a higher trading volume in this specific group of trading pairs was Bitfinex.
US-investors may only trade crypto-to-crypto (and not fiat-to-crypto) here. The primary reason for excluding US-investors from fiat-to-crypto trading is legal. The US-legal regime imposes obligations on many companies accepting funds from US-investors. Such obligations include, inter alia, preparing marketing material in accordance with SEC-standards and registering them with the SEC (a burdensome process). If you’re a US-investor looking for a platform where you can trade fiat-to-crypto, use our Exchange Finder to find out which alternatives you have.
Liquid Trading fees
When looking at trading fees at a cryptocurrency exchange, you must first understand the concept of “maker” and “taker”. Every trade occurs between these two parties: the maker, whose order exists on the order book prior to the trade, and the taker, who places the order that matches (or “takes”) the maker’s order. We call makers “makers” because their orders make the liquidity in a market. Takers are the ones who remove this liquidity by matching makers’ orders with their own.
Liquid has an extremely impressive fee offering. Takers pay 0.15% in trading fees. As the global industry average is around 0.25%, Liquid’s fees are roughly 40% lower than average. Wonderful. But that’s not all. The really impressive feature with this exchange is the maker fees. The trading fees for makers is -0.075%! This means that makers get paid to trade! So if you make a maker order worth USD 100,000 which is picked up by a taker, you get paid USD 75 for providing the liquidity. Sure, USD 75 isn’t that much for an order of that size, but still, you get paid! This is very impressive indeed.
If the above wasn’t enough, guess what they charge for fiat-to-crypto trades? Nothing.
Liquid Withdrawal fees
Out of the exchanges from Singapore that we list in our Cryptocurrency Exchange List, it is the only one that doesn’t charge any withdrawal fee at all. This means that Liquid – in terms of withdrawal fee charges – is better than each and everyone of the following cryptocurrency exchanges from Singapore: WEX, Coinbene, Triple Dice Exchange, Coinut, COSS, ExcambioRex, Coinhako, FYB-SG, UEX, Cointiger, Kryptono, DragonEX, Coinhub, Tokenomy, Bitrue, Bitbox, ABCC, CRXzone, Bytex and Kyber Network.
All in all, when looking at the fees here, it’s difficult to find any room for improvement. Liquid really has a competitive offering and is definitely one of the market-leaders when it comes to its fee model.
Good work, Liquid!
Liquid offers wire transfer as a deposit method, but you can’t deposit via credit card. According to information from Liquid to us here at Cryptowisser, credit card funding will be available also at this trading platform sometime during January-March 2019. So if you need to deposit fiat currency via credit card but there is no urgent need to do it, Liquid might still be the right place for you.
There are many aspects relevant to consider when determining an exchange’s security. One such aspect is Mozilla’s Observatory-test (https://observatory.mozilla.org/). Liquid only received an F-score in this test. This is actually the most common grade among the exchanges listed in our Cryptocurrency Exchange List, but it does show that there is room for improvement for Liquid.
But, as mentioned above, there are many different aspects one can consider when analyzing an exchange’s security. Another comprehensive source of information is the Exchange Security Report from ICOrating.com. In that report, Liqiuid received a B+ (4 out of 4 in User Account Security, 3 out of 4 in Registrar and Domain Security and 7 out of 10 in Web Security). Accordingly, the F-score in the Mozilla Observatory-test might be misleading for this specific exchange.
The exchange reviewed above has a large number of supported cryptocurrencies. If a large number of supported cryptocurrencies is an important factor for you in your choice of cryptocurrency exchange, you could also check out the following exchanges: