Buzzex Global Order Book – Liquidity And Fee Cashback

8 min read

In order for an exchange to be attractive to traders, it needs liquidity. We do understand that all the other aspects of the business need to be in place as well, such as security of funds, great support, fast trading etc. but in this post we’ll introduce our amazing feature which will ensure ever growing liquidity on Buzzex, and explain how it will open up doors for a unique feature that will set Buzzex further apart from the competition as well.

This feature is called The Global Order Book.

What we’ll do is integrate various liquidity sources, such as exchanges or liquidity providers, into our order book on Buzzex. This will ensure high liquidity and a full order book in all markets the moment the Buzzex platform opens its doors.

But that’s not our main goal. Our main goal is to create a platform that will benefit every trader that joins and trades on Buzzex.

In this post we’ll explain how the Buzzex Global Order Book works and how it will benefit traders with every trade they make on the Buzzex platform.

Buzzex Global Order Book mechanics

Every cryptocurrency exchange is an independent platform with its own order book. This also means liqidity is isolated on these platforms and the prices you pay for a certain coins on one platform always differs from the prices you pay for the coin on another.

The Buzzex Global Order Book aims to solve these issues by connecting all these isolated liquidity sources together into one order book, the Buzzex Global Order Book.

In other words, on Buzzex you’ll be able to trade on multiple exchanges from just one single platform and with just one account.

So how does the Global Order Book work?

First of all, it consists of 2 core aspects:

  • The Buzzex Order Book (our internal trading engine)
  • External Liquidity sources

With the Buzzex order book alone, Buzzex would be the same as any other exchange, an isolated liquidity source. Only orders that are matched inside its own trading engine would be executed.

By connecting to external liquidity sources, our matching engine can also execute orders from those sources.

Here’s how that works:

  • You place an order on Buzzex
  • Our system searches for a matching order on the Buzzex internal order book
  • If our system doesn’t detect a matching order on our internal order book, it searches for a matching order on multiple external exchanges
  • In real time, the order gets executed on one external exchange
  • Coins are instantly added to your Buzzex balance, just as if you would have traded the coins on our own internal order book

This setup is also referred to as “Smart Order Routing” in forex and stock markets and is described as follows on Wikipedia:

Smart order routing (SOR) is an automated process of handling orders, aimed at taking the best available opportunity throughout a range of different trading venues.

This setup turns Buzzex from an isolated liquidity source into a platform where you can leverage trades from multiple sources.

Buzzex Global Order Book Benefits

Now that the setup is clear, let’s take a look at the benefits it actually provides. But most importantly, this setup will benefit traders with every trade they make. (this will become very clear later on in this post)

Here’s an overview:

  1. Get the best price to buy or sell a coin at any time

Prices differ every second on various exchanges. It’s impossible to monitor all exchanges, have coins in all these exchanges and execute the offer at the best price that particular time.

At any given moment, the price can vary from 0.1% to 3%+ to either buy or sell an asset! In Illiquid markets this can be even higher.

On Buzzex you’ll be able to leverage multiple sources of liquidity to always get the best price in case you directly want to buy or sell a coin.

Here’s an exampe of a snapshot in the BTC/USDT market on Binance and Huobi:

If you want to buy 1 BTC, you need to pay 3.24 USDT more on Binance than you do on Huobi.

Here’s another example on Binance and Hitbtc in the same market:

In this example you even need to pay 4.18 USDT more on Binance than on Hitbtc to buy Bitcoin.

It’s impossible to monitor this, let alone move funds from one exchange to another in order to buy coins at the best price possible at any time.

On Buzzex, we aim to fully automate this and show all the best orders from various sources in one global order book.

  • Fast Execution Of Orders

If you trade on just one exchange and place a limit order, you depend on the amount of people that want to buy or sell that coin there.

The cryptocurrency market is highly volatile and it’s very likely that the market turns before your order is executed, or it only gets partially filled.

On Buzzex, your order will get executed from various sources, increasing the chances of it getting filled.

This can make a huge difference in making a lot of profits or not as the markets move up and down.

  • Trade more coins with high liquidity

With this setup, Buzzex can not only list just about any coin that trades on a reputable exchange, but it can also list coins and guarantee liquidity in the markets of that coin from day 1. This in addition to coins’ exclusive trading on Buzzex as Buzzex also has its own internal order book.

To give an example, at the moment of writing this post, if you trade on Binance you can not trade DOGE. Buzzex will list DOGE, have it’s own order book for the DOGE markets and connect to external DOGE markets as well.

Buzzex will allow traders to trade multiple assets without having to sign up, login and move assets to accounts on other exchanges. This can all be done from one platform where you can trade the exact same way.

  • Sell coins without crashing the price

Poor liquidity in even the biggest markets can’t be understimated in crypto. The market is still young and in full development, and even on the bigger exhanges it’s nearly impossible to buy or sell coins without having to buy or sell without going deep in the market.

Here you can see an example in the DASH/BTC market on Binance:

If you want to sell 10 DASH, you need to sell half of your coins at a much lower price. Now imagine 10 or 20 traders wanting to sell a large number of DASH. It would instantly lower the price of DASH with a few Dollars.

Our ultimate goal is to ensure you can sell (or buy) relatively large orders at the market price in every market on Buzzex, without causing a price crash.

The Buzzex Ultimate Advantage

The Buzzex Global Order Book has multiple benefits for users, that’s pretty clear from what you have read so far.

Our ultimate goal is to make the Buzzex the number 1 exchange for every trader in the world.

We are aware that in order to compete we need:

  • Bank-grade security
  • Lightening speed execution of trades
  • World-Class customer support
  • Time to establish ourselves amongst other top exchanges

To create the ultimate advantage, we will develop a feature that will make us stand apart from all other exchanges in the world.

This feature is simply: Fee Cashback!

Fee Cashback Overview

A liquidity aggregator has the benefit of holding coins in multiple exchanges. These coins can be used to exploit price differences and make zero-risk profits, which will then be used to distribute to traders on the Buzzex Exchange.

Here’s how this will work:

  • Our system gets incoming data from external exchanges
  • In real-time it analyses this data to discover triangular price differences
  • When an opportunity is found, it executes 3 trades in real time on 1, 2 or even 3 different exchanges
  • Profits from this feature are distributed to traders on the Buzzex exchange based on their trading volume

Every second, new opportunities to complete triangular arbitrage profit trades are found:

A few seconds later, a list of new opportunities appears:

Source: Koinknight

This is not something anybody can do though because:

  • You need coins in all exchanges
  • You need to have massive data analysing capability
  • You need to execute the trades simultaneously in microseconds
  • You preferably need to have high volume in most exchanges in order to lower the fees you pay there and grow the number of opportunities to make profits

Buzzex will have the unfair advantage of not only having the infrastructure ready which perfectly suits this trading strategy, but will also have assets available in an evergrowing amount of exchanges to spot and execute profitable trades.

Benefit For Traders

Buzzex will keep 0% of profits made from this feature except to keep a reserve fund and to support resources needed to maintain and scale the system (server setup, developer salaries etc.). It’s 100% meant to give us an edge on our competition by being able to give a fee cashback to traders on our platform.

IMPORTANT: The reserve fund will be sent to a wallet for everybody to see. Even though we will only keep coins in reputable exchanges and spread them in small batches, these funds will be used in case of contingencies. This gives extra security to Buzzex members.

When this feature goes live, we will also create a dedicated page inside buzzex to not only show the profits made that particular day (which will be the amount of cashback sent to traders), but also every single trade made from our system.

So how will the fee cashback work?

  • Once a month a snapshot will be made from your account’s trading volume that particular month
  • The total profits are 100% distributed once a month to all traders based on how much they traded that month
  • Cashback is added to your wallet’s balance which can be traded or withdrawn at any time

So simply put: we will aim to recoup the trading fees you pay, and potentially allow you to even make a profit from trading on Buzzex!

That’s right, based on how much trading volume there was on Buzzex and how much profit our feature made that month, it’s even possible that instead of paying a fee as on any other platform you can actually earn by trading on Buzzex!

Here’s a quick calculation:

  • $1 Million Volume On Buzzex
  • $2,500 trading fees paid
  • 10 profitable triangular trades made by Buzzex per hour of $50
  • $10,000 distributed to traders on Buzzex every day ($1200 goes to reserve fund the rest to maintenance cost)
  • You traded just over 1 BTC ($4,000) daily
  • You paid $480 in fees that month
  • You get $1200 Cashback that month making $720 profit!

The Buzzex Global Order book setup in combination with this triangular arbitrage feature will ensure Buzzex will become the number 1 place for traders to trade cryptocurrencies.

Buzzex Coin Advantage

You have now learnt that traders get a lot of benefits from the Buzzex Global Order Book setup, and will even get a fee cashback every month. Buzzex Coin is our platform’s utility coin which will allow traders to further increase their profits by trading on Buzzex.

Buzzex Coins give traders the unique opportunity to not only completely eliminate the trading fees you need to pay on the Buzzex platform, but also allow you to earn daily dividends from trading fees paid by other traders.

In order to receive this double benefit, you need to hold at least 20,000 BZX in your Buzzex account.

Dividends are calculated based on how many Buzzex Coins you hold in your Buzzex account. 20,000 BZX ensures you qualify for daily dividends and weekly airdrops, holding more than 20,000 BZX will increase your share.

So simply put, holding at least 20,000 BZX will not only allow you to earn daily crypto forever, but will also allow you to trade with zero fees paid, ensuring the trading cashback you receive is pure profit!

A very good reason to at least own 20,000 BZX coins.

IMPORTANT: During the pre-launch, buyers of Buzzex Coins will get lifelong staking rewards from the Buzex Blockchain. Don’t miss out on this amazing deal. Here you can find more info related to this bonus.

Conclusion

These days, a lot of cryptocurrency exchanges are being released. That’s why we want to create not just one, but multiple unique USPs in order to be competitive.

I’m sure that you have learnt a lot about how Buzzex will differentiate itself in a very competitive market in this post already.

We are however still in development phase, but the launch of the Buzzex platform is approaching.

It’s important to note that the Buzzex Global Order book is something that needs to scale. The more traders that join Buzzex, the higher the liquidity will be in all markets, the better prices traders will get and the more traders will benefit.

The Fee Cashback feature is also something that is still in development phase. We aim to complete this within the trans-fee mining period of maximum 6 months. During trans-fee mining, traders get a 100% cashback in the form of Buzzex Coins as explained here.

After trans-fee mining, the fee cashback will be replaced by cashback paid in other crypto.

As this will be a massive addition to the Buzzex platform, it’s definitely something to look forward to as the Buzzex platform grows.

So when our ultimate plan is in full swing, these will be the features that will make Buzzex and Buzzex Coin unique and competitive:

  • Funded by the blockchain (DAO)
  • Trade with 0% fees
  • Earn daily dividends
  • Earn from weekly airdrops
  • Buy or sell coins at the best price possible
  • Widest range of quality coins with high liquidity
  • Fastest order fill rate
  • Highest liquidity in all markets
  • Fee Cashback – Earn coins when trading on Buzzex!

As you can see, there are a plethora of features that will give Buzzex an edge on its competitors. The Buzzex team will stay focused, ensure we have an excellent platform, provide excellent support and scale our business in such a way that Buzzex eventually becomes the ultimate place to trade cryptocurrencies.

That’s it for now, have a great day!

The Buzzex Team

One Reply to “Buzzex Global Order Book – Liquidity And Fee Cashback”

  1. Congratulations for all Dev’s but more important for the idea development behind the set-up.
    As not all trading is familiar for me I look forward for the Grand Opening.
    At this particular moment, please don’t rush but deliver a sound and stable platform.
    Thanks to all persons involded.

    Brgds,
    Vermaryd

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