What’s Crypto Market Making Software & How Can It Help In Making Safe Investments?
Before moving ahead with deeper discussions about the role of Crypto Market Maker Companies in bringing back the confidence of traders and investors, it’s necessary to understand the basics of market making.
In simple words, market making is a process in which two-sided quotes are provided, namely, bid and asks. The quote size is also mentioned for an asset in exchange. This act helps to increase the liquidity of the exchange and helps the buyers and sellers, who might feel a bit worried about the decreased pricing and shorter market depth. In general, Market Making Software Crypto users are benefitted from the bid-ask spread. For instance, a crypto holder buys an asset for $10 and sells it for $11. While doing so, he accepts the risk of the price drop in a highly volatile crypto market, but it also helps in making a bid-ask spread.
Crypto Market Making Software helps investors to expose two-sided quotes to the market, based on the ups and downs of the pricing structure. However, the way Market Making Services function may vary, based on the technology it uses, adherence to KPIs, experience, liquidity provisioning, exchange integrations, as well value-added services that include OTC trading, strategic investments, and treasury services.
Here are some of the significant benefits of relying on the Market Making Services:
- Greater liquidity
- Wider spread & order book KPIs
- Market depth
- Control on price volatility
- Reduced slippage
- Assistance in setting achievable goals
