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Market makers are essential participants in the cryptocurrency markets. They facilitate trading crypto assets by adding liquidity. To work in the crypto market, market makers either partner with large crypto exchanges to participate in their programs (for example, WhiteBIT crypto exchange market making) or become liquidity providers in decentralized finance ecosystems, using computer algorithms and automated market-making software.

Market Making Strategies

The primary strategy for a crypto market maker is to provide liquidity by placing bids (buying prices) and asking (selling prices) for crypto assets in an order book on a crypto trading platform. In such a way, they create a two-way market, allowing other participants to trade assets at their established prices (bid and ask). Market makers should make these prices close to each other, with a minimal spread. The shorter the spread, the more attractive the market is to other traders, and thus, the more orders are fulfilled.

Market makers often handle large trading volumes, earning from collecting spreads from every deal closed. With their activity and large volumes of execution, market makers stand as crucial players in the market that maintain liquidity and price stability.

Market makers must be experienced traders who can adjust to changing cryptocurrency market trends and reduce risks. For that purpose, they use the following strategies:

  • Grid trading
  • Market making without a hedge
  • Delta neutral
  • Cross-exchange liquidity mirroring.

Platforms for Market Making

Here are some of the common market-making platforms in the crypto market:

Table: Crypto market-making platforms.

PlatformThe Type of ServicesFeatures
CoinruleThe platform for automated trading strategies on top crypto exchangesWorks with a range of crypto platforms   Free account option   Various subscription tiers   User-friendly   $29.99 per month subscription   No mobile app  
CoinbaseCrypto exchange with U.S. licenseUser-friendly   Secure   Wide range of assets supported (30+)   High fees ($0.99–$2.99, 0.50% spread, and 3.99% for debit card deposits)  
WhiteBITOne of the largest cryptocurrency trading exchanges in Europe with licenses in multiple European countries    Rebates discounts based on maker volume   Low fees:   Spot fees -0.010%   Futures fees -0.010%   39 futures pairs   357 spot pairs   Flexible API   Sub-Accounts   Colocation   Personal 24/7 support via messenger   Charts and advanced trading tools
Freedom24Regulated broker with access to 15 exchangesStocks, ETFs, options, futures   Interest-earning savings accounts   High withdrawal fees   Complicated fee structure   Lack of customizable charts

When comparing the features of market-making services provided by different platforms (exchanges and brokers), WhiteBIT seems to be the most compelling proposition due to its low fees, 24/7 customer support, flexible API, and advanced