For projects with native coins or tokens, crypto market making firms are essential. These firms ensure that sophisticated investors are able to participate in their projects by providing a market for their offerings. The key to a successful crypto project is selecting the right firm to help you reach your goals. Listed below are some factors to consider when choosing a crypto market maker:
Crypto market makers are big institutions that act as intermediaries between investors and traders. The purpose of market makers is to help keep financial markets liquid and increase investor interest in low-trading assets. They generate profits from transactions between participants and act as a buffer between investors and the market. They maintain market spreads and average liquidity within certain distances from the mid-price, which is the arithmetic mean of the highest bid and lowest ask quotes.
Many of these firms are becoming incredibly generous with their employees. Citadel Securities, for instance, has a history of generous pay to its staff, paying them an average of $683k per head in 2020. Other firms, such as GSR, are becoming more philanthropic as well. These firms are increasingly attracting staff from large technology companies. In 2021, executives from Amazon and Google moved into crypto firms. Ex-Meta employees have also started their own crypto companies.
One of the key features of a successful crypto market maker is speed. They can place thousands of orders a day with high speed and intelligence. Using fully automated trading algorithms, most market makers do not place individual orders on order books. Rather, they use advanced trading algorithms that reduce the need for human intervention. By using fully automated trading algorithms, these firms can provide liquidity more quickly. If a crypto market maker has good speed and liquidity, the transaction will be smooth and peaceful.