Anyone engaged in cryptocurrency trading has undoubtedly noticed the effortless process involved in purchasing or selling a well-known cryptocurrency like USDT. Across all platforms, its value remains consistent. The orders are swiftly executed, the order books are complete, the spreads are narrow, and there is minimal slippage when opening and closing the trades.
These factors will definitely be decisive for traders and investors.
On the other hand, some recently released tokens have not had any of the features mentioned above. Because of their unreliability and/or little trading activity, these tokens:
- Have low brand recognition, which means a poorly thought-out crypto market-making strategy.
- Very little was sold and bought due to the lack of willingness to close an order.
Therefore even if your marketing campaign is impeccable, without the ongoing assistance of an experienced token market making expert, crypto traders will face an extensive bid/ask spread, unfulfilled orders, along with extremely unstable value shifts— hazards that crypto holders are unwilling to accept.
A low liquidity level is what’s preventing so many new tokens from taking off.
That term measures the rapid purchasing and selling of the asset without drastically changing its price. Liquidity is a crucial element of token launching strategy since it enables token owners to transform their tokens into more valuable assets when necessary instantly.
Any new token inevitably will have to deal with liquidity problems. Fortunately for you, these issues may be easily avoided with the assistance of a cryptocurrency market maker!
Who Are Crypto Market Makers?
Let’s take a look at what is a market maker in crypto.
Crypto market makers provide liquidity to the trading space by buying and selling digital assets. They typically operate on exchanges, and their main goal is to ensure that someone always wants to trade this token.
Crypto market making firms use a range of strategies to manage their positions, including statistical arbitrage, automated trading, and order flow analysis. They earn money on the buy/sell spread.
Token market making specialists play an essential role in the cryptocurrency ecosystem as they help the market function effectively and steadily.
Traditional vs. Crypto Market Maker Software
The main mistake made by crypto startup owners is to contract with a stock market maker who has no practice in crypto trading. Many cryptocurrency entrepreneurs hire regular market-making specialists, but they lose financial capital and public credence instead of receiving liquidity.
Crypto and traditional markets require different order-placing mechanisms. Regular market makers must abide by a number of rules and place orders using dated trading software. On the contrary, cryptocurrency market makers utilize cutting-edge tools like automated technologies to issue orders swiftly without oversight from the government.
Last but not least, traditional market makers often operate a limited amount of assets that they can trade on significant exchanges. But crypto market makers are not finite to certain purchases and may buy and sell any token.
BitQuant – The Master of Liquidity Provision & Market Making Crypto
BitQuant Capital emerged as a top-tier crypto market maker before liquidity provision gained widespread acceptance. Its qualified team of traders has extensive expertise in providing crypto market making services for tokens and exchanges, both centralized and decentralized.
BitQuant Capital begins the cooperation by laying the “groundwork” for aspiring ideas to flourish and then continues to assist them both before and after they are launched. Since 2019, they have successfully launched 12 tokens while offering their clients liquidity around-the-clock.
They all are devoted to crypto and web3, which drives their team to create more complex strategies to keep up with the industry’s expansion. BitQuant traders and algorithms are making the market on the best cryptocurrency exchanges, including the very liquid Binance, Gate.io, KuCoin, etc.
BitQuant Capital has been around for a while now. Thanks to the knowledge and experience gained throughout years of operations, they can quickly achieve the best possible results for a crypto company.
Get in touch by simply scheduling a free consultation with one of the experts. To learn more about their experience, solutions, and achievements in cryptocurrency market making, check out their website.