Trading & Technical Analysis

What is market making in crypto?

Market making in crypto is the practice of continuously placing both buy and sell orders for an asset to provide liquidity, earning the difference between the two prices. A market maker quotes a bid and an ask at the same time, so other traders can transact instantly against those orders. For example, a maker might bid a token at 100 and offer it at 100.2, capturing the 0.2 spread when both sides fill. Market makers help keep an order book deep and trading orderly, which narrows spreads and reduces the cost of execution for everyone.