Market making is a key strategy for an improving liquidity in cryptocurrency markets, involving continuous buying and selling of assets to provide liquidity to traders.

Market makers earn profits by capturing the spread between bid and ask prices while ensuring that there is sufficient liquidity for traders to execute their orders.

Common market making strategies include rebate trading, where market makers earn rebates from exchanges for providing liquidity, arbitrage, where market makers exploit price discrepancies between different exchanges to profit, and order book management, where market makers adjust their orders based on market conditions to maintain balanced markets.

By employing these strategies, market makers play a vital role in enhancing market liquidity and efficiency.