Crypto Market Makers: List of the Top 15 Cryptocurrency Market Makers in 2024

Make your exchanges more engaging with high volume of ask/bid prices through the best institutional-grade liquidity sources in the crypto market making services business. Crypto market makers can play a role in mitigating price discrepancies caused by arbitrage through various operational action points (see section “How to choose a Crypto Market Maker”). They continuously quote buy and sell prices for assets across different venues, which reduces price discrepancies that could be exploited with arbitrage and ensures constant liquidity. Additionally, their ability to handle large volumes of trades is vital in absorbing substantial orders, preventing significant price disparities and market inefficiencies between markets.

Constant access to your liquidity data

The ideal scenario is to observe a steady relationship, where tighter spreads indicate larger average volumes. A market maker could be considered as a smart shopper who buys an asset when its price is low and then sells it when the price goes https://www.xcritical.com/ up. Doing so ensures there’s always activity in the market, making it easy for people to buy and sell tokens at stable prices.

Cryptocurrency market maker and the role of software infrastructure

Our team of highly skilled and seasoned algo trading professionals specializes in quantitative and high-frequency trading. With us, token issuers and traders are not just engaging with a market maker; they are partnering with a visionary ally dedicated to cultivating sustainable and efficient market environments. We value stability above all to ensure token longevity, which is why we commit to maintaining delta-neutral strategies. We rather take calculated risks by effectively balancing exposure to price movements than taking price incentives.

The Main Crypto Market Making Strategies

Our system offers detailed performance reporting with Autowhale Terminal, connections to over 50 exchanges, user access management, and caching of market data from connected exchanges. API keys & other sensitive data is stored encrypted and users have different rights. Our digital asset trading system is built to scale to multiple strategies, coins, markets and exchanges. All material in this website is intended for illustrative purposes and general information only.

• Effective market making can significantly enhance a token’s market performance and adoption.
• We pride ourselves on our transparent pricing, which includes a flat fee structure without hidden costs.
• Artificial Intelligence (AI) and Machine Learning (ML) will redefine execution strategies.
• Naturally, this will be at the ask price, because this is the lowest that anyone is willing to sell for.
• If you’re able to buy 1 bitcoin for $9,900, and then sell it immediately after at $10,000, you’ve just made $100 profit.
• Although some of this information will be proprietary, it’s essential to have at least a general idea of how well-prepared they may be and how they’ve thought about avoiding risks.

We are market makers and liquidity providers on most centralized and decentralized exchanges

Liquidity providers or market makers earn money by capturing the spread between an asset’s bid and ask prices. They do this by placing simultaneous buy and sell orders, profiting from the difference between these prices. Our proprietary trading platform was designed to navigate issues unique to digital asset markets. We have continuously improved our technology throughout our history, allowing for our exchanges and projects to scale and execute their strategies with the highest level of efficiency.

The first step of writing a market making bot therefore, is to be able to put in buy (maker) orders just above the current bid price. This requires one API request to check the bid price, and another to submit your order. The size of the spread on Bitcoin was a consequence of the market chaos that was emerging in December 2017. Retail investors — you, me, the average person on the street — were flooding into the market. Use options to reach your financial goals, from capital preservation to asset diversification.

Based on a different concept, decentralized exchanges use a deterministic pricing algorithm called an automated market maker, which utilizes pools of tokens locked in smart contracts called liquidity pools. When the price of a crypto asset in the liquidity pool of a given DEX deviates from the global market price, arbitrageurs will come in and push the price back to the market price. Market making consists in providing liquidity on a defined cryptocurrency by submitting both bid and ask limit orders on a crypto exchange. Market makers make profit by collecting the bid-ask spread over multiple trades. A fast and stable technology and proper risk management are essential to make markets succesfully.

One integration with 0x unlocks thousands of tokens on the most popular blockchains and aggregated liquidity from 100+ AMMs and private market makers. Since market making in crypto is based on smart contracts, they also enable wider access to crypto and ensure sufficient decentralization. All anybody needs to interact with an AMM in crypto is a self-custody wallet and an internet connection, and there’s no need to share information with centralized entities or pay high fees to intermediaries.

Beyond enhancing liquidity, market makers contribute to price stability by curbing sudden price swings and market fluctuations. This fosters trust and confidence of retail traders and professional investors alike, attracting more participants to the crypto market. In today’s crypto space, the liquidity provision business leaves little room for the second-best in technology and infrastructure, not to mention the usage of retail market making bots. The crypto market maker must operate a predictable, reliable, low-latency trading environment to be profitable.

Listings on well-established cryptocurrency venues might be very hard, especailly for startup cryptocurrency projects. Top-tier digital asset platforms require a proven track record of high trading volumes on other exchanges, so it is of high importance to build a proper strategy for token listings. Usually, new cryptocurrency projects first start listing their tokens on mid-size venues and building healthy growth there. Crypto market makers can be broadly categorized into individual traders, proprietary trading firms, and institutional market makers.

Markets are continuously monitored, and traders react to alarms generated by the trading systems. Providing liquidity is a constant process where your capital is always at risk. Therefore it is all about stability, performance, precision, and adoption to changing conditions and evolving exchanges’ APIs. To not be gamed by other market participants, you need to use market making software built on an architecture that addresses these requirements.

Our solution is integrated with all major and many local digital asset exchanges. The first type, Market Maker, has an ethical approach to customers, markets and investors. It uses the client’s assets for market making and usually charges a fixed fee for his services (retainer model). In return, it is committed to providing depth to the markets, maintaining tight spreads and keeping high uptime.

Most crypto trading bots are doing fine with simpler alpha or execution strategies. But for efficient and profitable liquidity provision, using a retail crypto market making bot may not be enough. This process helps to stabilize the market, reduce volatility, and enhance the general trading experience for participants.