Market Makers in Crypto: Understanding Their Role and Importance

Market makers are an essential component of crypto trading, responsible for providing liquidity, setting bid-ask spreads, and compressing price differences across exchanges.

Unlike traditional markets, where market makers operate on a fixed schedule and follow formal regulatory obligations, crypto market makers work 24/7 across over 370 exchanges, with no regulatory requirements in most jurisdictions. This scale and fragmentation make crypto market making more complex and chaotic than its traditional counterpart.