Crypto Trading Firm & Liquidity Provider GSR Markets

Market makers play a vital role in reducing price volatility within the crypto market. Through their provision of competitive bid and ask prices, they prevent sudden price swings, market fluctuations, and malicious flow like pump and dumps. A higher degree of stability instills confidence and makes the market more appealing for long-term investment and adoption. I also began to consider how the size of the spread would affect how much I was willing to offer over the current bid price. As we saw earlier, profit from any trade is crypto market making services directly proportional to the size of the spread.

Digital Asset Trading Infrastructure Solution

By continuously providing buy and sell quotes, they help stabilize prices and offer traders smoother execution. In 2022 and 2023, the landscape of crypto market makers has evolved significantly. During the ongoing bear market, crypto liquidity has dried https://www.xcritical.com/ up and retail trading volume across exchanges decreased. The market environment underlines the importance of liquidity providers to manage capital efficiently, stabilizing volatile markets and rebuilding trust in cryptocurrencies. As an advanced crypto market maker, Acheron Trading has over 125 institutional clients and works with more than 50 decentralized and centralized exchanges.

How we compare different market making solutions

• Crypto market makers make profits by charging a spread between the bid and offer price.
• Ensuring that the market maker complies with all relevant regulatory requirements in the jurisdictions in which they operate is crucial to avoiding legal risks.
• A higher level of liquidity means the market is more resilient to fraudulent activities because they require more capital to be effective.
• It has over a decade of experience when it comes to digital asset transactions and engineers stochastic models and algorithms.
• Market makers must navigate these changes to ensure sustained competitiveness and compliance in the dynamic crypto landscape.

In the example above, if we will buy 50 BTC with a market order, our slippage will be 100 USD from the midpoint value (20050). This is achieved by us connecting to our clients account with limited trading access. Also, you can be assured that flovtec complies with highest KYC/AML standards, as we are governed and audited under Swiss FINMA (SRO) law. Market makers often operate on a fee structure that includes a percentage of the monthly trading volume, typically around 1-3%. This is in addition to a fixed retainer, ensuring that both parties are motivated by the token’s success. Crypto markets never sleep, and we keep our focus steady, regardless of the day or the hour.

Market Making Program for Crypto Exchanges

This solution has been successfully implemented for other clients, offering flexibility in deployment options. In our kickoff workshop we will together work out the optimal trading setup for you. Additionally we analyze your current setup, explore hosting and infrastructure options and create an action plan to launch your setup.