Crypto Market Making
Reducing the friction between capital and innovation
Market makers play an important role in increasing the accessibility and liquidity of cryptocurrencies to traders, investors and market participants around the world. Market making in crypto is an activity whereby a trader simultaneously provides liquidity to both buyers and sellers in a financial market. Liquidity is the degree to which an asset can be quickly bought or sold without notably affecting the stability of its price.
What are market makers?
Market makers are firms or individuals that provide liquidity to the market by buying and selling cryptocurrencies to traders, investors and market participants around the world. They buy cryptocurrencies from sellers who are looking to part with them and sell them to buyers who are looking to acquire them. In this way, they help to facilitate trade and ensure that there is always someone on the other side of a trade. Market makers are important because they help to reduce the volatility of prices and provide a source of liquidity to the market.
GSR works with leading cryptocurrency projects and cryptocurrency exchanges and presents KPIs that clearly align with and validate our market-making value proposition with each partner. All trade executions are maintained in our proprietary database and reporting is fully automated and customizable. GSR Markets’ institutional grade software suite was built entirely in-house by our developers.
- Robust Liquidity – spread and order book KPIs
- 60+ exchange integrations
- Deep liquidity provisioning across both centralized and decentralized venues
- Through a thorough examination of your exchange and trading ecosystem we learn your needs and set achievable goals
- Our software measures performance on the most granular level, allowing for full visibility and flexibility
- Daily market reports are available to all trading counterparties
- Our team has experience trading with established and nascent projects
What are the benefits of crypto market making?
Markets that have low liquidity will generally have wide bid-ask spreads in their order books that can increase the volatility of the asset. Therefore it makes it more difficult for traders to get a good price for their trade and have their orders filled. Simply stated, the liquidity of an asset is its availability for buyers and sellers to easily trade it at any given time. Market Making aims to:
- Increases market liquidity and order book depth
- Mitigates dramatic price swings
- Assists with fair price discovery
- More efficient bid-ask spreads in cryptocurrency exchange order books
- More orderly entry and exits points for traders
- Dramatically reduces slippage
- Helps accommodate large institutional investors
Our proprietary trading platform was designed to navigate issues unique to digital asset markets. We have continuously improved our technology throughout our history, allowing for our exchanges and projects to scale and execute their strategies with the highest level of efficiency.
U.S. Legal Notice
Not a solicitation to U.S. Entities or individuals for securities in any form. If you are such an entity, you must close this page. Trading from Singapore, please review The Monetary Authority of Singapore (MAS) compliance note.
This information has been provided for informational purposes and is intended for investment professionals only and is not suitable for retail persons in the United Kingdom. Moreover, relevant legal restrictions or considerations may apply in your particular circumstances (including those based upon the risks of investing in cryptocurrencies), therefore, you are advised to consult with your legal, accounting, and other professional advisors prior to engaging in any transactions or services described herein.