How Market Making works
At the core of market making is the role of providing liquidity to cryptocurrency markets. The strategy involves continuously placing buy (bid) and sell (ask) orders for specific cryptocurrencies, narrowing the bid-ask spread, and ensuring readily available orders for traders. We aim to profit from the difference between the bid and ask prices.
The strategy is executed through a fully automated process. We develop and utilize a group of high-speed bots (algorithms) that have been operational since 2017, primarily on centralized exchanges like Binance.
Risks and how we manage them
Exchange risk:
The strategy is executed on the Binance exchange.
Exchange has a fund to which it contributes a portion of its monthly profits and compensates for losses in case of an attack. The maximum possible damage is zero profitability of the robot until Binance starts functioning normally.
Algorithmic trading:
Algorithmic trading is subject to specific risks: incorrect algorithms that may cause trade, errors, external cyber-attacks, software updates that may negatively affect the software, functionality, etc.
EarnPark has several secure devices that generate keys disconnected from the internet and wireless networks. Their absence makes withdrawals impossible.
System Outages:
Technical failures or outages on exchanges or within our systems can disrupt the execution of our strategy.
Our automated system includes advanced risk controls to protect client assets and minimize potential losses.
Past performance:
Past performance is not a guarantee of future results.
Other risks:
You should consult an advisor and not enter into any transactions unless you fully understand all risks.
Check out the detailed explainer video on the Market Making strategy: