How Do market Makers Make Profit?
How Do market Makers Make Profit?
I read about a projection into the coming years of the crypto market which is forecasted to reach a revenue higher than $11.71 billion in 2025 and with recent activities within the space, I understand how crucial Market makers are to the blockchain ecosystem.
Multiple question stirred in my mind as I study how these things work given the fact that all crypto platforms and markets require a certain level of liquidity.
Market makers obviously help take exchange or digital assets to the next level. While I found a project Liquidswap by Pontem claimed to be the first Automated Market Maker on the Aptos blockchain, I understand there’s a lot of integration going into automating systems and platforms within this space.
I would like to get more insights on how Market makers make their profit given the volatile nature of the market. Please share your thoughts.
I think those market makers are those who post ads on the P2P exchange who make buy or sell ads so on the swap exchange like in liquidswap I think this is the same as how P2P exchange or even on spot exchange they are making a profit from spread it is likely you have your own set to buy only at that price(should be cheap) and set up a sell(Must be a little profit).
Sample you set a buy limit order at $1.1 and you set a sell limit order at $1.4 you make a profit of 0.3 cents minus the fee those who set limit order are market makers this is I think how it works on any swap exchange.