How do crypto market making services work? Do different crypto market makers offer different crypto market making services?
We’re listing our token on Bithumb global next month and are trying to pick a crypto market maker to work with. I have already read this article https://hackernoon.com/a-guide-to-market-making-for-crypto-startups-jydr387v but still have some questions. I’m wondering, do different crypto market makers offer different kinds of crypto marketing making services? If so, what are some of the crypto marketing making services they offer? As in, do different companies implement different strategies? And, if they do, what kind of crypto market making strategy works best? Lastly, how do I find the top crypto market making services and providers?
We’re listing our token on Bithumb global next month and are trying to pick a crypto market maker to work with. I have already read this article https://hackernoon.com/a-guide-to-market-making-for-crypto-startups-jydr387v but still have some questions. I’m wondering, do different crypto market makers offer different kinds of crypto marketing making services? If so, what are some of the crypto marketing making services they offer? As in, do different companies implement different strategies? And, if they do, what kind of crypto market making strategy works best? Lastly, how do I find the top crypto market making services and providers?
Crypto market making services work by ensuring that there is a tight spread for a particular token by guaranteeing liquidity for that token. Basically, when traders want to sell an altcoin a Market Maker guarantees that they don’t have to wait extended periods of time for a buyer to come along, which could subject the token’s price to market volatility between the time of offer and the time of sale, and also ensure that traders don’t have to sell the token below market value.
The strategy for executing this consists of running a bot on the tokens company account that a market maker sets up. The bot’s algorithm recognizes when there is a discrepancy between sell orders and buy orders and steps in to fill the buy order. By doing this market markers ensure that traders can instantly sell their tokens at market value.
I guess the difference in the services, as you called it, is really a difference in the algorithm. Some Market Makers algos may work better than others. I’m not an expert on the subject but some of the more well-known crypto Market Makers are Kairon Labs (Kaironlabs.com), GSR(gsr.io) and Alpha Theta (alphatheta.com)
