It is unbelievable how easily we can place a trade in the digital world today. But it is worth noting that behind the scenes of our day-to-day transactions is the laborious work of crypto market makers. They are busy bees of the DeFi and CeFi that maintain a healthy liquid environment for all market participants.
You may wonder, “what exactly does a crypto market maker do”? Are our investment and trading decisions made by people or algorithmic bots? Are market makers and liquidity providers THAT important? (Spoiler: It is the backbone of your go-to-market strategy).
So, let’s cut to the chase and dive deeper into the topic!
Who Are These Crypto Market Makers?
Crypto market makers are entities, typically cryptocurrency trading firms, that provide liquidity to the digital asset markets. They are responsible for creating and executing orders on behalf of traders, creating a liquid and healthy market for investors. Market makers can take long and short positions, allowing them to profit from rising and falling prices.
Why Are Cryptocurrency Market Makers Important?
Cooperation with efficient and reliable crypto market makers is crucial in developing crypto exchanges and launching tokens. So let’s take a look at what benefits they bring to the table:
1) Liquidity. Crypto projects need crypto market makers to increase their token’s liquidity, which means tight bid-ask spreads, little to no slippage, deep order book (CEX), price stability, high trading volume, and fast-executed orders. Crypto market makers can provide liquidity by continuously buying and selling cryptocurrencies at different prices while paying a small fee for executing trades.
2) High trading volume. From the first point comes the second – trading volume. A liquid token can be easily exchanged whenever you want. High trading volume is a quality mark people look at when investing in cryptocurrency, and it can only be achieved if one on the other side of the trade is willing to close orders. That’s where crypto market makers come to the rescue: they constantly monitor the market, ensuring a fast order execution for buyers and sellers. Someone must continually add orders to the order book and close them anytime to achieve that.
3) Interest in your crypto project. The high liquidity of your token boosts the interest in your crypto project. Partnership with a crypto market maker indicates that the token is not another scam but a project with a real value that is being taken seriously.
4) Price support. If the order book for the token is almost empty, every order will have a crucial impact on the token price. Every crypto project needs a crypto market maker for price support to avoid this, even in unpredictable situations.
5) Listing on top-tier crypto exchanges. Did you know that some well-established crypto exchanges will only list your token if you have a market maker and liquidity provider working for you? There is no sense for such crypto trading platforms to put so much effort into listing a token that will probably pump, dump, and then die in a few days.
Choose BitQuant Capital as one of the top-tier liquidity providers and market makers in crypto
BitQuant Capital is a crypto market maker with over 5 years of experience in the crypto trading industry that provides unmatchable liquidity services for its clients. Throughout its career, they have experienced both successes and failures. Using this background, the company can deliver custom market-making solutions aligned with your business objectives, resources, and current market conditions.
Quality and responsibility are their forte, and due to this, BitQuant capital provides services through unique algorithms tailoring its approaches to meet your needs and financial capabilities.
They will find a way over, under, around, or through any obstacle to bring you the best possible results.
BitQuant Capital knows liquidity’s necessity for crypto projects, so it uses best practices and tactics to increase it for exchanges and tokens.
Interested to learn more about how that company can supplement your crypto business growth with the help of their liquidity services?
Then you can get a free consultation by filling out the form at their website.The BitQuant team will contact you as soon as possible.
