best crypto market makers

A Detailed Review of the Best Crypto Market Makers 2024

The secret to the smooth trading experience you have on top crypto exchanges lies in the hands of market makers. These vital players provide liquidity by continuously buying and selling assets. They reduce volatility and liquidity risk for market participants, which in turn can lead to further development in the crypto market by attracting more prominent investors. In this article by Finestel, we’ll talk about how they work and introduce some of the best crypto market makers.

Market Maker Found in Headquarters Notable Features
GSR Markets 2013 UK Major Payment Institution license in Singapore
Cumberland 2014 USA Subsidiary of DRW with extensive trading experience
Vortex 2019 UAE Focus on Web3 and DeFi projects, advanced trading bots
Kairon Labs 2019 Belgium Emphasis on ethical practices and transparency
Wintermute 2017 UK Partners with over 50 exchanges, zero-fee executions
B2C2 2015 UK Majority-owned by SBI, bridges traditional finance with crypto
DWF Labs 2022 Singapore Focus on Web3 investments and innovative liquidity solutions

Key Takeaways

  • Market makers play a crucial role in the cryptocurrency market by providing liquidity, reducing volatility, and facilitating efficient trading on exchanges.
  • They operate by placing continuous buy and sell orders, thereby narrowing the bid-ask spread and improving overall market efficiency.
  • Using automated trading solutions, such as Gunbot and Cryptohopper, market makers can execute trades quickly and adapt to market fluctuations.
  • Major exchanges like Binance often require market makers to maintain a minimum capital to participate in their market-making programs.
  • Effective strategies for market makers include cross-exchange market making, which takes advantage of price discrepancies across different platforms, and algorithmic trading to manage orders dynamically.
  • The success of market makers is vital for attracting larger investors to the crypto market and sustaining its growth and stability.

What Is a Crypto Market Maker?

The presence of crypto market makers is essential in the cryptocurrency market, as it is in any other developed market. But what does a crypto market maker do? To fully grasp the role of cryptocurrency market makers, try to imagine a market with crazy wide bid-ask spreads and massive volatility in which you should wait for days or weeks for a buyer to take the other side of your order. So, no instant take profits, stop losses, or even enter positions. This would be a reality without cryptocurrency market makers.

What Is a Crypto Market Maker?

Yet, the role of crypto market makers goes far beyond the reduction of liquidity risk. Their actions also help balance the market and lower volatility. As no one wants to hold a risky asset that they cannot sell quickly or an asset that can significantly fluctuate in price frequently, cryptocurrency market makers are essentially making the industry more attractive for investors.

How Does Crypto Market Making Work?

The best crypto market makers operate through extremely complex mechanisms. These operations are primarily based on order book dynamics and the bid-ask spread. With the help of automated market maker bots and advanced techniques, they are able to maintain liquidity and manage orders consistently. 

How Does Crypto Market Making Work?

Crypto market maker bots continuously interact with the order book.  They place buy and sell orders at various price levels to narrow the bid-ask spread, which is an important factor as it reduces trading costs for market participants.

Yet, the role of using market maker bots becomes evident when it comes to volatility.  The best crypto market makers use robot crypto trading methods and systems that can quickly react to market changes and execute trades based on algorithmic strategies. This is especially important in a wild market like crypto.

Additionally, cross exchange market making allows them to exploit price discrepancies across different platforms. So, cryptocurrency market makers definitely improve liquidity and minimize arbitrage opportunities, making the market more efficient.

Read our most detailed list on the best crypto arbitrage bots and the best DeFi trading bots in 2024.

Best Crypto Market Makers in 2024: Top 7 List

Now that you know what these entities actually do, it’s time to present the best crypto market makers in 2024:

Best Crypto Market Makers in 2024: Top 7 List

GSR Markets

The first entry on our list of crypto market makers is GSR Markets. GSR Markets is undoubtedly one of the largest crypto market makers. It was founded in 2013 and is known for its vast experience in the industry. The company is headquartered in the UK and is known as one of the key institutional players in the crypto ecosystem. This is due to its role as a liquidity provider collaborating with token issuers, exchanges, crypto institutional investors, and even miners.

GSR Markets: One of the best crypto market makers 2024

The Firm has recently gained attention for receiving a Major Payment Institution (MPI) license in Singapore. This license has gone a long way in allowing the GSR market making firm to operate legally.

Services Provided by GSR Markets

Here are the primary services offered by the GSR market maker:

  • Trading Services: Innovative solutions built on integrity to enhance trading outcomes.
  • Portfolio Solutions: Customized yield-enhancing strategies, such as call overwriting, designed to grow crypto portfolios.
  • DeFi Services: Active investment and liquidity provision for builders and token issuers within the DeFi ecosystem, with top-notch on-chain capabilities.
  • Crypto Market Making: Maintaining healthy markets for various digital assets, reducing price volatility, and assisting with fair price discovery.
  • OTC Crypto Trading: Unrivaled liquidity and pricing through Smart Order Execution, leveraging connections with top exchanges.
  • Algorithmic Trading: Proprietary trading technology for specific trading needs.
  • Risk Management: Strategies designed for miners, hedge funds, and exchanges to mitigate cryptocurrency market volatility.
  • Exotic Derivatives: Extensive expertise in engineering crypto-backed derivatives.
  • Customized Cryptocurrency Options: Tailor-made options strategies for crypto-native firms.

Cumberland

Cumberland is known as one of the best crypto market makers. It’s a subsidiary of DRW, a diversified trading firm with over three decades of experience in the financial markets. Cumberland was established in 2014 and provides deep liquidity and sophisticated trading solutions for institutional clients.

Cumberland: A Top Crypto Market Maker

The firm offers a comprehensive suite of services. From over-the-counter (OTC) trading to a robust proprietary electronic trading platform called Marea, the Cumberland market-making firm provides several different types of services to its clients.

Services Provided by Cumberland

As one of the top market makers in crypto, Cumberland offers a range of services to institutional investors in the crypto market, including:

  • Spot Crypto Liquidity: OTC liquidity for various cryptocurrencies. It allows large order execution without pre-funding requirements.
  • Listed Options and Futures: Cumberland facilitates trading in exchange-traded options for BTC and ETH, along with futures and spot basis trading.
  • Bilateral Crypto Options: Customized options trading via ISDA agreements tailored to client exposure needs.
  • Non-deliverable Forwards (NDFs): The firm provides trading of crypto forwards for hedging purposes and without physical delivery.
  • Algorithmic Trading: Adaptive trading technology that adjusts to real-time market conditions.
  • Electronic Trading Solutions: The Marea platform is used for streaming pricing and institutional trading.
  • Risk Management: Solutions designed for miners, hedge funds, and exchanges operating in the crypto industry.

Vortex

The next entry on our list is Vortex. Vortex is among the top crypto market makers that specialize in the Web3 landscape. Its operations are focused on providing liquidity solutions and enhancing the trading experience for crypto projects. Vortex has successfully collaborated with over 180 projects to increase its trading volume.

Vortex Crypto Market Maker

The firm aims to make trading accessible and efficient, particularly in DeFi protocols. To do so, it utilizes advanced market making bots and algorithms. Vortex’s approach ensures continuous liquidity and promotes token growth and stability. As a result, it is known as an ideal partner for projects looking to scale and secure larger exchange listings.

Services Offered by Vortex

Let’s take a look at the primary services offered by the crypto market maker Vortex:

  • Market Making: Provides essential liquidity to maintain stable and efficient markets.
  • Token Advisory Services: Offers guidance on tokenomics, strategic development, and positioning for token launches.
  • Trading Infrastructure: Uses advanced trading technologies to execute large orders discreetly.
  • Custom Trading Strategies: Develops tailored trading strategies for clients that are aligned with their goals and preferences.
  • Intuitive Dashboard: Provides clients with a customized dashboard to track performance metrics and market trends.

Kairon Labs

Kairon Labs, launched in 2019, is one of the most well-known and largest crypto market maker and liquidity providers. Its goal is to enhance the trading experience for digital asset projects. The firm specializes in creating tailored market strategies that align with the unique needs of each project.

Kairon Labs: Crypto Market Making Firm

Kairon Labs places a strong emphasis on ethical practices. It aims to provide transparent and fair market-making services. The company supports its clients throughout their token launches and exchange listings. So, there’s no wonder why numerous crypto projects put their trust in Kairon Labs and its solutions.

Services Offered by Kairon Labs

  • Market Making: Provides continuous buy and sell orders to enhance liquidity and minimize price volatility for digital assets.
  • Exchange Listings: Facilitates connections with legitimate exchanges to help projects achieve timely and cost-efficient listings.
  • Advisory Services: Offers strategic consulting to guide projects in market entry and development.
  • Algorithmic Trading: Operates advanced trading software to automate trading strategies and respond quickly to market changes.
  • PR and Marketing: Collaborates with external agencies to support marketing efforts and build a strong public image for crypto projects.

Wintermute

Wintermute is a global algorithmic trading firm and one of the biggest crypto market makers and liquidity providers. Established in 2017, Wintermute has a strong reputation for its technological sophistication. Their focus is to enhance market efficiency and transparency.

Wintermute: The Best Crypto Market Maker?

Wintermute partners with over 50 exchanges and supports various trading platforms. Its clients are, therefore, able to create and mitigate liquidity risk and access markets efficiently.

Services Offered by Wintermute

As one of the best crypto market makers in 2024, Wintermute offers a variety of services, which include:

  • Market Making: Wintermute continuously provides buy and sell orders to ensure liquidity and facilitate smooth trading on crypto exchanges.
  • OTC Trading: The firm offers competitive pricing in over 250 digital assets, catering to institutions and qualified individuals through its OTC desk.
  • Liquidity Provision: Wintermute works to improve market depth and narrows bid-ask spreads, which attracts more sophisticated investors.
  • Custom Trading Solutions: The firm tailors its trading strategies to meet the unique needs of each client.
  • The NODE Platform: This flagship OTC trading platform provides competitive prices and allows for zero-fee crypto executions.
  • Strategic Partnerships: Wintermute works closely with exchanges and blockchain projects. It helps them secure quicker listings on better exchanges.

B2C2

B2C2 is another leading liquidity provider and one of the biggest market makers in crypto. It primarily serves institutional investors. B2C2 was founded in 2015 and is majority-owned by the Japanese financial group SBI. B2C2 aims to bridge traditional finance with digital assets.

B2C2 Market Making Firm

The firm has built a reputation for delivering reliable liquidity across varying market conditions. This has made them a preferred partner for hedge funds, banks, family offices, and exchanges. At the core of B2C2’s offerings is its proprietary technology. Yet, it has also introduced several innovative solutions, including options and structured loans.

Find out the best MEV bots in 2024.

Services Offered by B2C2

  • Market Making: B2C2 engages in crypto market making operations and provides liquidity and stability.
  • OTC Trading: The firm offers an over-the-counter (OTC) trading service that provides competitive pricing and efficient execution without transaction fees.
  • Options and Derivatives: B2C2 has launched various derivative products, including the first electronic OTC options trading platform.
  • Structured Loans: The company provides unique financial products, such as structured loans, that help clients to manage their capital effectively.
  • Liquidity Solutions: B2C2 offers tailored liquidity solutions according to the needs of its client and helps in reducing counterparty risk.
  • Cross-Product Solutions: The firm develops cross-product solutions that include customized exposure limits and leverage requirements.
  • Real-Time Risk Management: B2C2 employs advanced risk management frameworks that enable real-time monitoring of credit and market risks.

DWF Labs

The last entry on our crypto market makers list is DWF Labs. It is a next-generation Web3 investor and crypto market maker. DWF Labs has quickly established itself as a significant player in the crypto space since being Founded in 2022. The firm offers innovative market-making solutions, tailored OTC trading, and strategic investments in early-stage projects.

DWF Labs: Crypto Market Maker

The company uses its advanced technology and expertise to trade spots and derivatives across over 60 exchanges. It supports a portfolio that includes more than 700 projects, with a notable presence among the top 100 cryptocurrencies by market cap.

Services Offered by DWF Labs

  • Market Making: DWF Labs provides liquidity solutions, ensuring efficient trading and price stability for various digital assets.
  • OTC Trading: The firm offers competitive over-the-counter trading services, allowing clients to execute large trades discreetly and efficiently.
  • Venture Investments: DWF Labs actively invests in early-stage projects, supporting innovative founders and contributing to the growth of the Web3 ecosystem.
  • KOL Wavemaker Program: This initiative aims to connect community leaders with promising projects, facilitating marketing and outreach efforts.
  • Cloudbreak Fund: A fund designed to support DeFi projects and enhance liquidity within the ecosystem.
  • Ecosystem Support: DWF Labs collaborates with multiple stakeholders in the crypto space. It runs validator nodes and contributes to various blockchain projects.

How to Become a Crypto Market Maker?

If you seek to become a market maker in the cryptocurrency space, there are a lot of requirements you should have. For instance, a solid understanding of trading strategies, market dynamics, and liquidity management are just a few.

One of the first steps is to apply for a market-making program offered by a cryptocurrency exchange, like the Binance market making program. This often requires maintaining a minimum net capital, which can vary significantly by platform. Some exchanges may require a starting capital of around $250,000.

Once you establish a relationship with an exchange, you can start trading frequently to provide liquidity. It’s recommended to use automated trading solutions offered by reputable platforms and solutions, like the Gunbot market maker bot or the Cryptohopper market maker algorithms, for better results.

Conclusion

In this article, we’ve discussed what crypto market makers are and what their role is in the cryptocurrency market. As mentioned, the current improvements in the stability of the crypto market and its future developments heavily rely on crypto market making firms. These entities provide liquidity and boost market efficiency using sophisticated solutions.

Moreover, we also introduced the best crypto market makers available in 2024 while presenting their unique services and features. Finally, if you ever wondered how to become a market maker in crypto, we’ve provided you with a brief guide on how to begin.

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My name is Edris, founder of TradingRage. I have been a crypto & forex trader and asset manager for the last 5 years. I’ve also been writing online content about finance and the financial markets, as it is my true passion. I’ve written numerous articles, landing pages, and market analyses (for popular websites like CryptoQuant and CryptoPotato.com) . To wrap it up, I am a trader, money manager and author.

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