How Crypto Market Makers Are Unlocking Liquidity In The Digital World – CryptoMode
We used to say that cryptocurrency is a young market with plenty of opportunities for its early explorers. And this is indeed the case, albeit relatively. Have you ever wondered how many tokens there are already? – more … than 12,000! Compared to the previous year, the number of digital coins has doubled in 2022. But there is a simple explanation for this astonishing growth.
Thanks to the absence of barriers to entry and the interest in crypto assets, dozens of them are launched every day. As the market becomes too competitive, many good projects face liquidity issues that prevent mass adoption.
In order to overcome this problem, tokens associate with a crypto market maker – an institutional strength that creates an effective environment for all market players.
The concept of “market makers” is as old as the traditional financial market. They act as an intermediary between a buyer and a seller, quoting orders from both sides to maintain a sustainable infrastructure for investors and traders.
Market makers serve the same purpose in the cryptocurrency market – they connect liquidity to various token projects as well as both centralized and decentralized crypto exchanges.
As mentioned earlier, a liquid environment is critical to the survival of any project. An efficient market is naturally more attractive to traders and investors, which is why crypto tokens and exchanges with high levels of liquidity are bound to succeed.
No crypto exchange can maintain a fair environment without a market maker. Liquidity is a hallmark of any trading platform – it serves as a green flag for investors and projects considering listing there.
- MM for CEX. An example below perfectly demonstrates why the need for market making is felt on centralized crypto exchanges. A trader places an order on illiquid CEX->the order takes a long time to fill because there is no trading activity->the order is miraculously filled with high slippage->the trader has no other choice but to go to another crypto exchange. In this case, the promise behind market making includes minimizing bid-ask spreads, maintaining trading activity, increasing order book depth, and preventing drastic market manipulation.
The more liquid an exchange is, the greater the number of new token listings. A sustainable environment is exactly what token issuers are looking for. You need to take the liquidity of your exchange seriously if you want it to thrive and grow.
- MM for DEX. Even though market making is generally considered an activity for centralized markets, there is work on decentralized platforms that can be done exclusively by specialized trading firms.
Since liquidity on DEXs is driven by automated market makers, all market making activities
solutions are linked to the management and constitution of liquidity pools. Crypto trading
companies are feeding liquidity on decentralized exchanges to prevent them from being
manipulated by pumpers and therefore encourage users to finance the pools themselves.
Whether the token is listed or just planned to be, partnering with a market maker is essential for its effective performance on a crypto exchange. Having a crypto liquidity provider working for you guarantees:
- Support for price and trade volume
- Order book management
- Additional Benefits of Arbitrage Trading
- Built-in algorithms for liquidity risk management
- Attract more sophisticated investors to your project
- Pre-launch and post-launch support
The crypto market making ecosystem is diverse, with many operators in different markets. How do you choose one with deep expertise in a clear understanding of the market?
BitQuant Capital is a value-focused market maker and one of the top-ranked crypto trading firms specializing in providing liquidity for digital assets and exchanges, including CEX and DEX.
Since 2019we have truly pursued our mission – to be a fair and reliable player helping token and exchange projects of all sizes achieve their secondary market liquidity and trading goals.
Our main competitive advantage stems from our strong quantitative approach, the expertise of our team and significant investments in breakthrough technologies.
Bitquant is more than a market maker – it’s your ecosystem partner in crime.
- Realistic goals and expectations on both sides – We strive to maintain clear and transparent communication about our actions. We aim to fully understand clients’ requirements so that we can execute correctly and in their best interests.
- Competitive prices – We advance your business at the most competitive cost on the market. It is in our interest to ensure that our efforts achieve the best result for your investment.
- personal touch – tell us what your needs are and we will suggest the most suitable strategy. Using our agile algorithms, we can actively adapt your trading strategy based on market conditions, trading goals, and the growth stage of your business.
- In-depth expertise – In business since 2019, we have had both successes and failures, but we have learned from them. So far we have dealt with 12 successful token launches.
- Reliable partners – We have developed a trading infrastructure that provides liquidity for dozens of trading pairs on major centralized and decentralized exchanges, such as Binance, KuCoin, Bitfinex, etc.
One of the biggest challenges for projects operating in the crypto space is liquidity and the only way to solve it is to partner with a market maker and a liquidity provider.
Market makers are a central part of the digital asset ecosystem, and even highly liquid exchanges and tokens use these services.
The best way to start your market making strategy is to consult an expert first. Fill in the brief form to receive a free consultation from one of Bitquant’s professionals. Or take a look at our website to fully explore our services and solutions.
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