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What founders should know before choosing a crypto market making programme

What founders should know before choosing a crypto market making programme
Image credits: zoommachine/Depositphotos

People usually do not come to market making right away. At first, it seems that listing and a little traffic are enough — and the market will “rock out” by itself. But then strange things start happening: transactions are uneven, the spread floats, the price reacts too sharply.

At this moment, interest in crypto market making program arises as a tool that can bring order to trading. For example, solutions like WhiteBIT crypto market making program provide not just liquidity, but systematic work with the market.

What the market looks like before and after market making

Before liquidity is connected, the order book looks unstable. There are levels with many orders, and “empty zones”. Because of this, transactions may not be executed where planned.

After launching a normal program, order book stability appears. Levels are filled more evenly, the price stops reacting to every small volume.

And this is no longer about theory — this is what is visible literally in the first days.

Who is really behind liquidity

At the heart of any program are liquidity providers. These are not just “bots” that place orders. These are systems and teams that constantly keep the market in working order. They adjust to volatility, volumes and behavior of traders.

And most importantly — they work continuously. Liquidity does not appear once a day, it is maintained constantly.

Why nothing works without a technical base

Many people underestimate technical infrastructure.

You can have a good strategy, but if the system reacts slowly or does not have time to update orders, the result will be weak. The market changes quickly, and the infrastructure must keep up with it.

That is why normal Crypto market making programs are not built around an “idea”, but around the technology that implements this idea.

How to understand that the program is working correctly

There are several signals that are visible without deep analytics.

The first is the price behavior. If it has become smoother, without sharp “empty” movements, this is a good sign.

The second is the execution of orders. If the transactions are closer to the expected price, then the liquidity is distributed correctly.

This is exactly execution behavior evaluation — an assessment not based on the numbers in the presentation, but on how the market behaves in practice.

Where people most often make mistakes when choosing

The most common mistake is to look only at the promises.

Phrases about “deep liquidity” and “narrow spreads” sound good, but do not show how the system behaves in real conditions.

Another point is ignoring the dynamics. The market does not stand still, and if the solution does not adapt, it quickly loses its effectiveness.

What does an adequate approach look like

A normal approach is to look at the result in the work: Is there stability in the order book? Are there sharp drops? Is the price behaving adequately?

If these things work, then the cryptocurrency market making program is doing its job. Market making is not about “adding liquidity” but about making the market workable.

And at some point, you simply stop thinking about liquidity as a problem because it becomes a basic part of the market that works without unnecessary noise.

DISCLAIMER: The information provided in this article is for educational and informational purposes only and does not constitute financial, investment, or legal advice. The content should not be relied upon as a substitute for professional advice.

Cryptocurrency investments are highly volatile and unregulated in the UK. You may lose some or all of the money you invest. Past performance is not indicative of future results. Before making any investment decisions, you should conduct your own research and seek independent financial advice from a qualified professional.

The authors and publishers of this article are not responsible for any financial losses you may incur as a result of using or acting upon the information contained herein.

For more information on the risks of cryptocurrency investments, please visit the FCA’s official guidance.

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