The process of crypto marketing helps bring the buyers and sellers to a single platform for conducting sales, purchases, and trading of various kinds of digital assets in the crypto market. The success of any kind of market largely depends on liquidity. A liquid token will get enough buyers and can also be sold easily, without making a significant change in price. Thus, liquidity plays a crucial role in cryptocurrency market making.
Market-making strategies are often used to provide liquidity to digital assets that attract buyers and sellers to the crypto trading platforms or exchanges. The process starts with submitting both, the highest bid and lowest ask for a digital asset in a crypto market. The difference between the highest bid and the lowest ask (the lowest price agreed by the seller) is termed a ‘spread’. Liquid markets are characterized by big spreads. If there are no market makers, the markets will become less active. They actively place orders for earning profits, reducing the spread, and maintaining liquidity.