Market makers in crypto: how to find the right one for your token?

An efficient market-making strategy is arguably as important for a token as marketing or community building. Without it, the token can suffer from low trading volumes, fall prey to manipulations, and even collapse altogether. What is market making, how it helps a token grow, and how to find a quality market maker for your asset — this article by the BDC Consulting experts will cover all the basics.

What is a market maker in crypto?

A market maker (MM) is a firm or an individual that makes sure that there is always liquidity for buying or selling a specific asset. A crypto market maker will both buy and sell a specific token all day long, so that no retail seller is left without a buyer at the current price, and vice versa.

In other words, market making is fundamentally different from regular trading: whereas a trader will want to either buy or sell at a specific price, the MM will do both.

MMs are usually professional trading firms, brokers, banks, funds etc. They use special algorithms to place orders, which retail traders constantly seek to uncover. There are whole study courses, videos, and books about how MMs work and how to use this information to one’s advantage, including Steve Mauro’s ‘Market Maker Method’ and Inner Circle…