Crypto is a complex, unpredictable yet exciting world that is steadily taking over the world. In spite of all the interest that crypto generates, most crypto assets and exchanges have to rely on crypto market making company in India to enhance liquidity and generate better investor interest. PlatinX Technology is a crypto market making company in India that is providing services such as Crypto Market Making, Liquidity Enhancement, OTC/HFT/Algo Trading, Crypto Listing Services, and more. Let us talk about crypto market making in India.
What is Crypto Market Making?
Crypto market making is enhancing the liquidity of crypto by submitting bids and asking limit orders simultaneously for that token on the exchange. Crypto market making company does that and they make a profit by collecting bid-ask spread over multiple trades. In simple terms, PlatinX Technology in its role as a market maker company in India quotes buys, and sells prices. Therefore, they also facilitate fair price discovery and liquid trading for participants. This indirectly creates arbitrage opportunities which in turn increases overall crypto exchange efficiency.
Market Making in Crypto Markets
Although crypto markets have made it easier for individuals to provide these services however it is still a sector dominated by financial institutions because of the huge volume needed. Crypto exchanges have APIs that can be used by individuals to offer market making services.
Moreover, the necessary trading volumes as well as other prerequisites are stringing for crypto market making. Therefore, only big firms can fulfill these requirements and create a liquid market for traders. PlatinX Technology is one such firm that provides market making services in India by providing huge volume trading too.
Exchanges hire Market makers to enhance liquidity by paying one-time setup fees and gradual (monthly) payments later on.
There are many advantages of hiring a crypto market making company for your token –
- Increase liquidity so more and more traders and investors are trading your crypto token
- Minimize friction cost of transactions
- Fair price discovery of your crypto token
- Minimize volatility and slippage
- Healthy trade order books
- Increase the stability of the token
These are some of the reasons why crypto exchanges hire PlatinX Technology as a crypto market maker company in India.
Trading Strategies for Crypto Market Making
PlatinX Technology as a leading crypto market making company in India utilizes many known strategies. They also customize an existing strategy to offer something new and advance the traditional process through their automated software.
- Copy Strategy – Using a source exchange market to create
- Order Back Strategy – It creates an order on another exchange matching the bid-ask spread on the original exchange.
- Fixed Price Strategy – This involves creating an order book without any source market
- Circuit Breaker Strategy – This involves canceling those who behave too far out of the given quotes.
The bottom Line
Crypto Market making is necessary for a highly liquid, fair-price crypto exchange. PlatinX Technology provides robust Crypto market making services in India. They utilize different strategies and provide proprietary software to automate the process too. The process doesn’t stop here. There are promotion and marketing services too to help your token create a community and increase its usage. They also act as AMM for Liquidity Pools for DEX exchanges. Visit the website, www.platinx.io to know more.