Market Making Bot
At Tokens.net, we are first cryptocurrency exchange to offer extra feature for our users to earn extra profit or just to try on the shoes of a market maker. The Market Making bot is typically a paid service but is now available to every user on the Tokens.net platform.
Our Market Making bot is an autonomous version of a traditional market maker without human emotions, efficiently executing a set of instructions to make a trade or sets of trades.
As any exchange, our liquidity reflects bid (price to buy) and ask (price to sell) spread. In other words, this means that converting one cryptocurrency to another digital asset is an indicator of market makers and market takers.
A market maker is an individual or institution continuously ready to buy and/or sell a financial asset, anticipating a profit from the difference in bid-ask spread. They are not concerned with the direction of the price, they simply trade on either side of the spread, filling a position in a market. They are liquidity providers, facilitating an efficient market, willing to do so at a risk for a reward.
Market making used to be a human job, but with technological advancements, it became sophisticated trading where everyone can participate, especially in the 24/7 cryptocurrency market.
Our Market Making bot is a computer program designed to simulate human behaviour (to behave like a trader), performing repetitive tasks that would be otherwise time-consuming, mundane or impossible for a human. It is executing a trading strategy from a conventional market maker, placing successively buy and sell orders in an attempt to profit from the bid-ask spread difference and price fluctuation. In this case, a market making bot will ensure higher efficiency and liquidity on the market, while bot users – market makers – earn a profit on an outcome from different trades with different prices.
For example, if there is a bid price of 10,125.00 USDT/BTC and an ask price of 10,126.00 USDT/BTC, filling up both orders can make a profit of 1.00 USDT.
The above example also serves as an example of how a bot is more efficient. It performs these repetitive trades faster and consistently while catching the price changes over a period of time. This means that not every trade will make a profit, but our bot is appropriate for making profit over longer periods of time.
Get started with Market Making bot by adding a new account and transferring funds to the account to try out Market Making bot.