Automated market making has transformed from a niche institutional practice into an accessible strategy for sophisticated traders. This comprehensive guide covers everything you need to know to get started.
$52M+
Daily Trading Volume
TradeBlocks processes over $52 million in daily trading volume across 15+ exchanges
What is Market Making?
Market making is the practice of providing continuous liquidity to a market by simultaneously quoting buy (bid) and sell (ask) prices. Market makers profit from the spread—the difference between these prices—while enabling other traders to execute orders efficiently.
Why Market Making Matters
- Liquidity provision reduces slippage for all market participants
- Price discovery helps establish fair market values
- 24/7 automation captures opportunities around the clock
- Consistent returns through high-frequency small gains
Key Concept
The spread is your profit margin. A tighter spread attracts more volume, while a wider spread protects against volatility. Finding the right balance is crucial.
Platform Performance
Here’s what TradeBlocks clients typically achieve within their first 90 days:
Avg. Daily Volume
$2.4M
Spread Efficiency
0.08%
Platform Uptime
99.99%
Trades per Day
12,450
Volume Growth Trajectory
New users typically see exponential growth as they optimize their strategies and expand to more trading pairs:
Monthly Trading Volume Growth
Average performance for new TradeBlocks users
Available Strategies
TradeBlocks offers multiple strategy types to match different risk profiles and market conditions:
| Strategy | Risk Level | Expected APY | Best For | Min Capital |
|---|---|---|---|---|
| Foundation | Low | 12-18% | Beginners | $10,000 |
| Floating Spread | Low-Medium | 18-28% | Stable pairs | $25,000 |
| Inventory Skew | Medium | 25-35% | Volatile markets | $50,000 |
| Avellaneda-Stoikov | Medium-High | 35-50% | Advanced users | $100,000 |
| Cross-Exchange Arb | Medium | 30-45% | Multi-venue | $75,000 |
Pro Tip
Start with the Foundation strategy on stable pairs like USDC/USDT or ETH/USDC. Once you’re comfortable with the platform, gradually move to higher-yield strategies.
Revenue Distribution
Understanding where returns come from helps optimize your strategy mix:
Revenue Sources
Breakdown of how profits are generated
Spread Capture Explained
Spread capture is the core market making profit mechanism:
- Post bid order at $99.95 (willing to buy)
- Post ask order at $100.05 (willing to sell)
- When both fill, earn $0.10 per unit (the spread)
- Repeat thousands of times daily
Performance Comparison
See how TradeBlocks stacks up against manual trading and competitor platforms:
Execution Efficiency Score
Higher scores indicate better performance across all metrics
Key Performance Indicators
We track the metrics that matter most:
Spread Tightness Over Time
Lower is better - tighter spreads attract more volume
How to Get Started
Getting started with TradeBlocks is straightforward:
Step 1: Connect Your Exchange
Link your exchange accounts via API keys. We support:
- CEX: Binance, OKX, Bybit, KuCoin, Gate.io, and 10+ more
- DEX: Uniswap, SushiSwap, PancakeSwap, and major DEX aggregators
Step 2: Configure Your Strategy
Select a pre-built strategy bundle or customize parameters:
- Trading pairs
- Position sizing
- Risk limits
- Spread targets
Step 3: Deploy and Monitor
Launch your strategy and monitor performance in real-time:
- Live P&L tracking
- Risk exposure dashboards
- Performance analytics
- Automated alerts
Risk Disclosure
Cryptocurrency trading involves substantial risk of loss. Past performance does not guarantee future results. Only trade with capital you can afford to lose. TradeBlocks provides tools, not financial advice.
Conclusion
Automated market making offers a compelling way to generate consistent returns in cryptocurrency markets. With the right tools and strategy, you can access the same techniques used by institutional traders.
15+
Supported Exchanges
Trade across CEX and DEX platforms from a single unified dashboard
Ready to Start?
Book a free strategy consultation with our team. We’ll help you choose the right approach for your goals and risk tolerance.