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 first writing this review, 20 December 2018).
Do you like to monitor your cryptocurrency investments, and even do some trading, while on your phone? If so, this exchange has an app for you: Liquid Pro App. With this app, you can use most features of the trading platform and won’t even need a desktop at all!
With respect to liquidity, this is a strong exchange. When listing cryptocurrency exchanges after their 24 hour trading volume, the exchange was on place no. 22 on the date of first writing this review (20 December 2018). 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.
On the date of last updating this review however (17 July 2019), the exchange had increased dramatically in trading volume but still dropped on the list due to the trading volume on the market in general having increased even more. On this date, their 24 hour trading volume was USD 486 million but that only gave them place no. 41 on the list.
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 View
Different exchanges have different trading views. And there is no “this overview is the best”-view. You should yourself determine which trading view that suits you the best. What the views normally have in common is that they all show the order book or at least part of the order book, a price chart of the chosen cryptocurrency and order history. They normally also have buy and sell-boxes. Before you choose an exchange, try to have a look at the trading view so that you can ascertain that it feels right to you. The below is a picture of the somewhat limited trading view at Liquid:
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 a decent fee offering. Both takers and makers pay 0.10% in trading fees (or 0.05% if you pay the trading fees in QASH). As the global industry average is around 0.25%, Liquid’s fees are roughly 60% lower than average. Wonderful.
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: Coinbene, Triple Dice Exchange, Coinut, COSS, ExcambioRex, Coinhako, 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: