How the (market creator) works in crypto trading: a complete guide

Market creator (market creator) — is a key participant in the cryptocurrency ecosystem, ensuring its functionality and attractiveness for traders. These specialized traders and institutions constantly support supply and demand through two-sided orders, making it possible for any market participant to quickly enter and exit positions. Without such participants, cryptocurrency trading would be hindered by high spreads, unpredictable prices, and difficulty executing large transactions. In this material, we will examine the role of market creators, their activities, differences from market takers, leading players in 2025, and the risks associated with their work.

Who is a market creator in cryptocurrency trading?

A market creator is an algorithmic trader, investment firm, or trading company that actively places buy (bid) and sell (ask) orders for one or more crypto assets. Their main function is to create the opportunity for immediate execution of trades of any size without waiting for the opposite side to appear.

Large financial institutions, hedge funds, and specialized algo-trading firms dominate this segment. However, retail traders also contribute by placing limit orders on exchanges.

Market creators’ profit is generated from the spread between the buy and sell prices — the difference that accumulates over thousands of trades. Their presence is critically important for both centralized (CEX) and decentralized exchanges (DEX).

How market creator works

A market creator operates through continuous placement of interconnected orders at different price levels. Here’s how it works in practice:

Operation cycle

Step 1: Initiating orders
The market creator simultaneously places a buy order for Bitcoin (BTC) at $87,200 and a sell order at $87,250. This spread becomes their margin.

Step 2: Execution and accumulation
When a trader accepts the sell offer at $87,250, the market creator immediately places new orders. The spread multiplied by the number of trades forms a steady income.

Step 3: Position management
Market creators use hedging across multiple exchanges and high-frequency trading algorithms $50 HFT( to minimize risks. They analyze order book depth, volatility, and order flow for dynamic spread adjustment.

) The importance of market creators in 24/7 trading

Cryptocurrency markets operate continuously, unlike traditional stock markets. Market creators provide round-the-clock liquidity, preventing sharp price jumps caused by low volumes. Additionally, they provide initial liquidity for new token listings, attracting early traders to recently launched assets.

Leading market creators in 2025

Wintermute: algotrading giant

Wintermute is one of the most influential market creators, managing approximately ###millions in over 300 on-chain assets across 30+ blockchains. As of November 2024, the company provided liquidity on more than 50 crypto exchanges with a total trading volume of nearly $237 trillions.

Advantages: Extensive coverage of CEX and DEX, advanced algorithms, proven reputation.
Limitations: Less focus on niche tokens, may be unavailable for early-stage projects.

$6 GSR: investor and liquidity provider

GSR offers not only market making but also OTC trading, derivatives trading, and investment services. By February 2025, the company had invested in over 100 leading crypto projects and protocols, operating on more than 60 exchanges.

Advantages: Long market presence, focus on liquidity management, multi-profile approach.
Limitations: Mainly focused on large projects, high costs for small businesses.

Amber Group: large-scale trader

Amber Group manages trading capital of about $1.5 billion for over 2,000 institutional clients. Its total trading volume exceeds ###trillion. The company is known for AI-oriented solutions and strict risk management.

Advantages: Comprehensive financial services, high compliance standards, intelligent solutions.
Limitations: High entry requirements, not suitable for small projects.

$1 Keyrock: optimization specialist

Founded in 2017, Keyrock manages over 550,000 trades daily across more than 1,300 markets and 85 exchanges. The company offers market-making, OTC, options services, and liquidity pool management.

Advantages: Data-driven approach, customized solutions, algorithmic optimization.
Limitations: Less known compared to giants, higher fees for specialized services.

DWF Labs: portfolio approach

DWF Labs manages a portfolio of over 700 projects, supporting more than 20% of the top-100 projects on CoinMarketCap and 35% of the top-1,000. The company trades on more than 60 leading exchanges in spot and derivatives markets.

Advantages: Extensive network, competitive OTC solutions, early project investments.
Limitations: Works only with Tier 1 projects, strict evaluation procedures.

Market creator vs. market taker

These two categories of traders form the foundation of cryptocurrency markets:

Market creators add liquidity

They place limit orders that remain in the book until execution. Example: placing a buy order for BTC at $87,200 and a sell at $87,250. If a trader wants to buy, a ready-made offer is available. Market creators reduce spreads and make trading more economical.

Market takers accept the current price

They immediately execute orders at the market price, removing liquidity. A trader wanting to buy BTC immediately at $87,250 fills the market creator’s order, completing the transaction instantly.

Symbiosis in the market

Market creators ensure a constant presence of orders, while takers generate activity. A well-balanced system reduces slippage, increases book depth, and lowers transaction costs for all participants.

Why market creators are critical for exchanges

Liquidity and volumes

Market creators constantly replenish the order book, enabling large trades to be executed smoothly. Without them, trying to buy 10 BTC would cause a sharp price spike.

Price stability

Market creators dynamically adjust spreads, preventing sharp fluctuations. During downturns, they support demand, and during growth, they add supply.

Price efficiency

Their continuous quotes help the market discover the true value of assets. Result: narrow spreads, quick execution, and low trading costs.

Attracting traders and increasing revenue

Liquid markets attract both retail and institutional participants, increasing exchange commissions. Exchanges often cooperate with market creators to support new listings.

Risks for market creators

Despite profitability, the activity of market creators involves serious risks:

Volatility and losses

Rapid price fluctuations can lead to unexpected losses. If the market moves against the position faster than the market creator can adjust orders, losses become real.

Inventory risk

Market creators hold large volumes of cryptocurrencies. If asset prices drop sharply, they can incur significant losses, especially in low-liquidity markets.

Technological threats

Dependence on algorithms and HFT systems creates vulnerabilities. Technical failures, cyberattacks, or latency issues can lead to executions at undesirable prices.

Regulatory uncertainty

Legislation varies by country. In some jurisdictions, market making may be classified as market manipulation. Compliance costs for global operations can be substantial.

Conclusion

###Market creators( are the foundation of cryptocurrency trading, providing liquidity, stability, and efficiency necessary for proper market functioning. Their constant presence ensures that any trader can quickly enter and exit positions without significant losses on spreads.

Leading market creators such as Wintermute, GSR, Amber Group, Keyrock, and DWF Labs utilize advanced algorithms and data analytics to optimize liquidity. However, they must balance market risks, technological challenges, and regulatory uncertainty.

As the digital asset ecosystem develops, the role of market creators will only grow. Their innovations in algo-trading and liquidity management will contribute to the development of a more mature, accessible, and efficient cryptocurrency market.