Most people meet a red market in two modes:
- panic sell, or
- “I’ll just hold, it’ll come back… right?”
Pros do something else entirely: they turn into infrastructure. They start making the market instead of being farmed by it.
From HODLer to Liquidity Provider 🧱
Take a simple example:
You’re sitting on $100K in XRP and the market nukes –15%.
Classic HODL result: you’re down $15K and all you did was refresh the chart in pain.
Now imagine that same position plugged into a Market Making (MM) program:
- you quote both bid and ask
- thousands of tiny orders run inside the volatility range
- you collect spread every time someone crosses your quotes
Price still drops, yes.
But instead of passively eating the loss, you’re harvesting micro-PnL all the way down. That spread income becomes a live buffer against drawdown.
Why MM Loves Chaos ⚙️
Market Making shines when the chart looks ugly:
- Volatility = more swings → more fill opportunities
- Wider spreads → more edge per trade
- You don’t need to “call the bottom” — you profit from motion, not predictions
The key shift is mental:
you stop asking “where will XRP go?”
and start asking “how do I quote around wherever it is?”
This Isn’t Magic, It’s a Playbook 📓
People like Tyler McKnight have shown in detail how MM-style strategies can turn a scary-looking drawdown into something closer to a managed, monetized volatility event.
If you want the numeric breakdown of how a –12% day can net a positive result when you’re making the market, not chasing it, his write-up is worth your time.
Most traders treat dumps as personal attacks from the universe.
Market makers treat them as billable hours.
Your choice: victim of the dip - or the one getting paid every time someone else panics. 🚀
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