- August 8, 2024
- Category: Market Making
We help kickstart new digital asset and cryptocurrency exchanges with proprietary crypto market making scripts and trading algorithms to provide consistent spreads, healthy order books, and access to third-party bid-ask orders on remote exchanges like Binance Chain and Huobi.
Fast, scalable, stable technology and proper risk management are essential to perform successful market-making and establish your Bitcoin and cryptocurrency exchange platform’s liquidity.
What is Crypto Market Making?
Crypto market making involves providing liquidity on a defined cryptocurrency by submitting both bid and ask limit orders on a crypto exchange.
Market makers make a profit by collecting the bid-ask spread over multiple trades.
What is Crypto Exchange Liquidity?
Crypto exchange liquidity defines how quickly and easily a digital asset can be bought or sold at a stable price on a given market.
The quicker you can buy or sell a crypto-asset as close to your asking price as possible – the more liquid a cryptocurrency exchange is.
What can you do with a Market Making & Liquidity Software?
Yellow Capital’s proprietary crypto trading software enables professional market makers and cryptocurrency exchange platform owners to populate their order books with relevant bid-ask orders at a high market-making level, with a good spread, and without having to worry about the potential lack of liquidity on their new platform.
- Automate your cryptocurrency trading: You can start automated trading out-of-the-box on centralized exchanges and decentralized protocols using our customizable built-in strategies or implement your secret strategy logic.
- Provide Consistent Spread: Proceed with comfortable spreads to limit exposure and, based on trading dynamics at your markets, adapt accordingly to optimize the sweet spot where an efficient spread has the best effect on financial market efficiencies while ensuring your profits.
- Hotlink Orders: You can stream additional liquidity for your digital asset exchange from any third-party exchange like Binance Chain, Huobi, Bitfinex or any other liquidity provider of your choice through configurable API endpoints.
- Aggregate Order Books: Combine the bid-ask orders on your platform with the shares available at a specific price from the third-party liquidity providers.
What trading strategies can I execute with Yellow Capital?
Yellow Capital’s market-making software is trusted by over 100 crypto token projects, compatible with all major Blockchain protocols, and supports popular and custom trading strategies:
- ’Copy’ strategy:The Copy strategy uses a source exchange market to create an order book on a target market.
- ’Order Back’ strategy: This strategy behaves like the Copy strategy and can order back the liquidity from the source exchange market. The strategy creates an order on the source exchange, containing the matched amount and same price without the spread. This way, if the spread configured is higher than the exchange fee, the profit & loss will be positive.
- ’Fixed Price’ strategy: This strategy creates an order book on a market without using any source market.
- ’Circuit Breaker’ strategy: This strategy monitors orders on an account, comparing prices with a source exchange, and cancels those too far from the current order book offers on the source. It is a safety measure in case the strategy which creates the market crash or has a defect
Innovative crypto market making and liquidity provision with Yellow Capital.
We use sophisticated algorithms to ensure that our market making is always efficient and effective. This is why our market-making services are designed to benefit both the project and the investors.
At Yellow Capital, we pride ourselves on being a market leader in the crypto market-making space.
Let’s get your cryptocurrency trading automated!
Our team of experts specializes in creating a sustainable and profitable crypto market for your tokens through our proven strategies including market making, algorithmic trading, liquidity provision, token growth, and crypto exchange listing.