Top 5 market makers in the cryptocurrency space in 2020

What is cryptocurrency market making?

Compared with traditional market makers, cryptocurrency market making is a new thing. This article aims to better understand the behavior of cryptocurrency market makers. First, let’s explore what market making is by exploring a basic understanding of the market making process.

Demand for cryptocurrency market makers

As mentioned earlier, efficient financial markets are time-critical. Traders and investors want to trade immediately, because under normal circumstances, finding a suitable buyer or seller of the same asset for both parties, and the price expected by both parties is the same, which can be a difficult task. This tends to increase the waiting time interval. The longer the waiting time, the higher the transaction cost, the lower the liquidity level, and the lower the transaction volume. In short, this is a losing situation.

How are cryptocurrency market makers different

Earlier market makers were synonymous with banks and brokers. But now, market makers in the encryption field have conceptually expanded into the digital asset industry. The new era of cryptocurrency market makers differs from traditional market makers in several ways:

  • Cryptocurrency market makers are used to dealing with low liquidity markets
  • Use blockchain tracking systems to gain in-depth market insights
  • The number of crypto exchanges has increased compared to stocks that are only traded with a few reliable exchanges such as Nasdaq.
  • Market makers do not decide prices, but provide orders, reduce spreads, help negotiations, formulate trading strategies and provide necessary feedback. Market makers are experts who understand the working mechanism of order books, technical analysis and the establishment of customized trading software strategies.
  • Designed an intuitive risk management strategy, designed for those who are difficult to manage.
  • Its proprietary trading technology can be modified according to trading needs. Its sales and aggregation strategy will be adjusted according to real-time liquidity and volatility, so that investors can truly get the best price.
  • They work in a very pragmatic and precise way, from testing strategies to obsessive analysis of them, and then deploy market-making strategies tailored to each project that best suit their needs.
  • Maintain 24/7 alarm, you can change the trading strategy according to time requirements.
  • Reports about transaction volume, profit and loss, and direct communication with the project via WeChat, Telegram and Whatsapp are published every two weeks.
  • Schedule a conference call every two weeks to discuss future strategies.
  • Alpha Theta is very particular about following the AML/KYC strategy to maintain its operational compliance.
  • They have huge data transparency, allowing investors to keep abreast of market operations.
  • One person can use n robots to execute different strategies on multiple exchanges
  • Dedicated trading desk runs 24 hours a day
  • A complete trading system can ensure a tight OTC spread.
  • Decades of experienced team members from giants such as FB and Google.
  • Comprehensive global operation, can be traded on multiple exchanges.
  • Constant innovation is the mantra here because the company is always looking for tools and data sets and new sources of Alpha.
  • A tailor-made risk management framework ensures timely monitoring of investment-related risks.
  • Provide 24/7 liquidity on its corresponding cryptocurrency exchange with API

Why do you need top market makers?

Liquidity is regarded as an important factor to increase the trading volume, which can help the project to be listed on large exchanges and more exchanges. Market makers can effectively meet this demand because they can help create a market for the token, route items in a way that helps them find the best price, and achieve price stability for future transactions, thereby maintaining more Narrow spreads, allowing investors to place healthy orders.



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比特币新闻 — 区块链新闻

比特币新闻 — 区块链新闻