Crypto Market Making Bots: Can They Really Boost Liquidity?

[jacksmithuk]

Liquidity is the lifeline of any trading platform. Without it, traders face price slippage, wider spreads, and poor trading experiences. That’s where market-making bots come into play.
These bots are designed to place continuous buy and sell orders, narrowing the spread and ensuring that traders can always enter or exit positions without big losses. For exchanges, they help attract more users by keeping the market active. For traders, they create a more stable environment to trade in.
But the big question is: Do market making bots really solve liquidity issues, or do they just mask the problem temporarily?
Some say they are a game-changer because they maintain healthy order books and stabilize prices. Others argue that relying too heavily on bots might create “artificial liquidity” that disappears during high volatility.

What’s your take?
Have you used or tested a market making bot?

Do you think they genuinely improve market stability, or just make things look better on the surface?

What features do you believe are essential in a good market making bot?

Looking forward to hearing your insights!