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Market Making
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Market Making
Market Making Keys to Success
If you want to enjoy more success through Market Making then you need to know the best way
Market Make
Market Making History
Market making is as old as forex and stock trading. Because high-frequency market makers thrive in volatile environments, it makes perfect sense for them to be attracted to the cryptocurrency market. Initially, market making in cryptocurrency was mainly done by individual traders and online trading systems.
Market Makings
Making Profits
Conditions for market making in cryptocurrency have attracted asset managers and other institutions on board. You won't find another market that is volatile as cryptocurrency. This means computer savvy firms and individuals can make profits in seconds due to the price oscillations on the markets.
Maker Taker
Making Gains
For most traders, making money on the crypto market is comparable to waiting for a London bus. But sticking with that analogy, one can wait for the bus for too long and then suddenly, two come along at once. It's not uncommon for Bitcoin and other cryptos to get 10% gains or more in a couple of hours.
Market Making is a smart way to make money from online trading

Crypto Market
Calculating Profits
Relative profitability in the market making strategy is calculated as a percentage relative to the capital that is being used to trade. Let’s say you are a market maker who is ready to use $10,000 as your seed capital and are looking to trade the EOS/ETH pairs. Let’s also assume the 1 EOS is currently trading for $8 on an exchange that has a $0.26 spread.

As we have already pointed out, one of the main strategies for market makers is to create two orders – one a buy order and the other a sell order. You can, therefore, create an $8 buy order and set your sell order at $8.26. When both of these orders execute, you will have earned $0.26.

In order to calculate your relative profitability, use the formula; spread /(2*price). In our example, the relative profitability will come to 1.625% for every trade that executes successfully. Not shabby at all, especially considering that you can keep doing this over and over again throughout the day. For instance, it is very possible to make up to 100 such trades in a single day.
Trading Exchanges
Some popular exchanges almost always have a very thin spread and so are not very ideal for this market making strategy. For instance, an exchange that has a $0.01 spread will not give you any significant gains even if you were to make hundreds of trades in a day. Most market makers will, therefore, go for decentralized exchanges that have large spreads.

For instance, doing a hundred trades on an exchange has a 1 cent spread will yield $644.74 while doing 100 such trades on an exchange that has a 26 cents spread will yield $50,125.17 on the same $10,000 investment. For market making to be consistently profitable, the underlying digital asset needs to have a stable exchange rate. If the price of the asset goes t the moon or tanks, the strategy may not be as effective. When the prices of an asset start shooting, your buy low order will not get filled.

Meanwhile, the sell order will fill at the price you had set and so you will miss out on the huge gains. On the flip side, when the digital assets start to tank, your sell order will not fill because everyone is trying to get rid of the coin. If you are running a bot and you do not stop it, you might end up filling the entire sell orders on the order book. That might sound good in theory but it might be disastrous if the coin ends up at $0 market cap

Online Crypto Maker
Can Market Making work in your favour?
Market Making Expertise
With thousands of available digital assets and counting, the market maker must not bank on their financial muscle alone but also rely on technical prowess and experience. Technical expertise is what helps any trader to adhere to good risk management practices and it also helps the trader t have realistic expectations
Market Making Future
The spreads on order books would be too big to risk opening trades. Market makers make it possible for a person to trade digital assets at any amount or time without necessarily incurring unnecessary losses. Since cryptocurrencies are the future of currencies, market makers are the future of trading
Taking Risks
Most novice traders take uncalculated risks that end up costing them, but this expensive route can create good market makers. Market makers shouldn't be misunderstood and hated as they often are. If it wasn't for the market makers, there would be liquidity on the thousands of digital assets on your favorite exchange
Making Strategies
Top exchanges allow traders to connect to APIs so implementing market making strategies using trading bots is easy. Market makers will come up with a strategy that they tested and the bot will execute the trade for them. The cryptocurrency market never sleeps so a trading bot that is set correctly will make profits over and over.
Bitcoin Market Maker
Market Making Wide