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Table of Content:
1.Get Your Crypto Market Making Software Developed:
2.Set the Aggressiveness
3.Put the Crypto Market Making Bot to Live Testing
4.Expose Your Crypto Trading Bot to Real Market
5.Monitor The Working of Bot
As the name depicts, market-making is the activity that involves buyers and sellers coming together to “make a market” for financial instruments. In recent years, it has emerged as a significant practice in the crypto space.
Market makers foster the accessibility of cryptocurrencies to market participants. The quality and quantity of market-making activities have gradually been evolving as an important metric to gauge the maturity of specific projects and the crypto industry as a whole.
Market makers, the high-volume investors produce purchase and sell orders simultaneously to offer sufficient liquidity to the markets, minting profits on the spread between the bid and ask price. In digital assets markets, professional institutional traders, hedge funds, and cryptocurrency market making bots regulate the market-making activity.
Crypto market making bots are software solutions responsible for raising the number of daily buy/sell orders over crypto exchange platforms. This example explains their working –
Let’s say that a crypto trading or market making bot is customized to buy and sell BTC against USDT for $5,000 at 0.2% away from the mid-price for both sides. It will give market makers profit as the value moves up or down the predetermined mid-price within the set range.
While finding the best technology provider offering premium crypto market making services, here’re some of the factors you must consider examining their offerings:
1. Security Features:
Make sure that crypto trading bots have all the security features required to protect them from different categories of security breaches.
Pick a feature-rich crypto trading bot that allows you to take advantage of maximum market opportunities. It must have a user-friendly interface, stop-loss limits, back testing features, risk management modules, and other precautionary features.
3. Reputation Of The Crypto Market Making Software Provider:
A leading technology provider would certainly offer a smart and safe crypto market making bot. So, make sure to consider the reputation of the provider before counting on a crypto market making solution.
Be wary of overpriced crypto market making solutions. There is no use in checking competitiveness if the bot doesn’t align with your budget.
In the end, the crypto trading bot solution must be extensively customizable to allow tweaks as per the customer’s desired strategy and ROI.
The basic steps involved in setting up a tailor-made cryptocurrency market making solution include:
1. Get Your Crypto Market Making Software Developed:
The very first step requires you to find a reputed technology provider offering a blue-chip crypto marketing making software solution. Share with them your expectations from the crypto trading bot and also get the required currency pairs integrated.
2. Set the Aggressiveness:
Before you get started with making a market with your incredible crypto trading bot, make sure that you have chosen the range in which you require your bot to execute the buy/sell orders. The aggressiveness decides the volume and profits made from the trades.
3. Put the Crypto Market Making Bot to Live Testing:
Live tests are integral before your market making solution goes live whether or not your bot has a backtesting feature. To keep your losses at bay, make sure you are employing a small portion of capital during live testing.
4. Expose Your Crypto Trading Bot to Real Market:
After you are contented with all the tests, let it go live and watch your crypto market making solution executing orders, and making profits in the real trading markets.
5. Monitor The Working of Bot
Closely monitor how efficiently your cryptocurrency market making software is facilitating trades as per your strategy. You can’t be oblivious and expect your market making solution to mint money for you passively. You would need to examine the performance as well as the trades to see if further settings are required to optimize your money or market-making.
As the crypto adoption and numbers of cryptocurrency exchanges continue to grow exponentially, the significance of crypto market making services will keep on increasing. This guide must have given you an overview of how you can set up a crypto trading bot for your cryptocurrency exchange solution.
For more insights, you can consult with the subject matter experts at Antier Solutions, a leading provider of comprehensive business solutions, consulting, and IT services. We specialize in the development of world-class crypto exchanges and marketing making bots to cater to diverse business needs.
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