When it comes to the cryptocurrency trading sector, the role of crypto exchange market makers is crucial because they ensure liquidity and stability for trading platforms. As the crypto market develops, understanding the function of market makers becomes essential for investors, traders, and crypto businesses. This article explains the fundamentals of cryptocurrency market making, its various types, and the indispensable services market makers provide.

What is Crypto Market Making and What Types Exist?

Crypto market making involves creating buy and sell orders on a cryptocurrency exchange to provide liquidity. Market makers are entities or individuals that actively participate in the trading process by placing buy and sell orders nonstop. This activity helps narrow the bid-ask spread, thereby stabilizing prices and facilitating smoother trading operations. There are two main types of market makers in the crypto space: automated and traditional.