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Topic: How Do market Makers Make Profit? (Read 129 times)

brand new
Activity: 0
Merit: 0
August 29, 2024, 06:10:22 AM
#6
I read about a projection into the coming years of the crypto market which is forecasted to reach a revenue higher than $11.71 billion in 2025 and with recent activities within the space, I understand how crucial Market makers are to the blockchain ecosystem.

Multiple question stirred in my mind as I study how these things work given the fact that all crypto platforms and markets require a certain level of liquidity.

Market makers obviously help take exchange or digital assets to the next level. While I found a project Liquidswap by Pontem claimed to be the first Automated Market Maker on the Aptos blockchain, I understand there's a lot of integration going into automating systems and platforms within this space.

I would like to get more insights on how Market makers make their profit given the volatile nature of the market. Please share your thoughts.
legendary
Activity: 3472
Merit: 3217
Playbet.io - Crypto Casino and Sportsbook
August 06, 2024, 05:45:20 PM
#5
I'm curious how the exchange itself will benefit or earn some P2P exchange users. Do those sellers/buyers on P2P exchange under an exchange have some fee percentage or what?
For example, the Binance P2P exchange, I mostly use it before when I want to convert my cryptocurrency to our fiat currency or vice versa, as from my side, I don't pay any fees to Binance, I always get exact amount.
P2P exchange in Binance is not totally free if you are a market maker or who made ads buy or sell they ask for the fee it's a fixed fee since you said you don't pay any fees in Binance P2P it means you are a taker meaning you choose any buy or sell available on the P2P exchange, takers don't pay any fees only those market makers will shoulder the fees.

Read the P2P fees here https://www.binance.com/en/fee/p2pFeeRate
legendary
Activity: 2534
Merit: 1397
August 05, 2024, 08:53:52 PM
#4
I think those market makers are those who post ads on the P2P exchange who make buy or sell ads so on the swap exchange like in liquidswap I think this is the same as how P2P exchange or even on spot exchange they are making a profit from spread it is likely you have your own set to buy only at that price(should be cheap) and set up a sell(Must be a little profit).

Sample you set a buy limit order at $1.1 and you set a sell limit order at $1.4 you make a profit of 0.3 cents minus the fee those who set limit order are market makers this is I think how it works on any swap exchange.
I'm curious how the exchange itself will benefit or earn some P2P exchange users. Do those sellers/buyers on P2P exchange under an exchange have some fee percentage or what?
For example, the Binance P2P exchange, I mostly use it before when I want to convert my cryptocurrency to our fiat currency or vice versa, as from my side, I don't pay any fees to Binance, I always get exact amount.
newbie
Activity: 120
Merit: 0
August 05, 2024, 07:00:31 PM
#3
I read about a projection into the coming years of the crypto market which is forecasted to reach a revenue higher than $11.71 billion in 2025 and with recent activities within the space, I understand how crucial Market makers are to the blockchain ecosystem.

Multiple question stirred in my mind as I study how these things work given the fact that all crypto platforms and markets require a certain level of liquidity.

Market makers obviously help take exchange or digital assets to the next level. While I found a project Liquidswap by Pontem claimed to be the first Automated Market Maker on the Aptos blockchain, I understand there's a lot of integration going into automating systems and platforms within this space.

I would like to get more insights on how Market makers make their profit given the volatile nature of the market. Please share your thoughts.
Never heard of the project but being on Aptos could be a good reason to look at it cos I am bit done with projects on solana and ethereum and my focus is on other blockchain atm cos the hype may be tilting towards ton ecosystem of perhaps Aptos.

More insight be appreciated particularly if there is an airdrop in play to take part
legendary
Activity: 3472
Merit: 3217
Playbet.io - Crypto Casino and Sportsbook
July 31, 2024, 07:04:39 PM
#2
I think those market makers are those who post ads on the P2P exchange who make buy or sell ads so on the swap exchange like in liquidswap I think this is the same as how P2P exchange or even on spot exchange they are making a profit from spread it is likely you have your own set to buy only at that price(should be cheap) and set up a sell(Must be a little profit).

Sample you set a buy limit order at $1.1 and you set a sell limit order at $1.4 you make a profit of 0.3 cents minus the fee those who set limit order are market makers this is I think how it works on any swap exchange.
jr. member
Activity: 263
Merit: 1
July 29, 2024, 02:55:55 PM
#1
I read about a projection into the coming years of the crypto market which is forecasted to reach a revenue higher than $11.71 billion in 2025 and with recent activities within the space, I understand how crucial Market makers are to the blockchain ecosystem.

Multiple question stirred in my mind as I study how these things work given the fact that all crypto platforms and markets require a certain level of liquidity.

Market makers obviously help take exchange or digital assets to the next level. While I found a project Liquidswap by Pontem claimed to be the first Automated Market Maker on the Aptos blockchain, I understand there's a lot of integration going into automating systems and platforms within this space.

I would like to get more insights on how Market makers make their profit given the volatile nature of the market. Please share your thoughts.
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