What are cryptocurrency market makers?

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Market makers are employed by crypto exchanges to ensure sufficient liquidity and efficient trading of cryptocurrencies.

Connect/Create WalletNo wallet? No problem. You can set one up for free. We recommend Torus for first-time users.Market makers play a key role in the cryptocurrency world, helping to provide liquidity for traders. Here's a look at their role in the crypto markets and how they operate.Market makers play a pivotal role in maintaining liquidity in financial markets, making them attractive environments for trading.

Market makers also contribute to the stability of the cryptocurrency markets by ensuring price continuity. They help maintain a relatively narrow bid-ask spread, a key indicator of strong liquidity and an active trading environment. This not only instills confidence among traders but also protects them from potential market manipulation.

Additionally, market makers usually charge cryptocurrency exchanges a general fee for their services. This fee serves as an additional source of income for market makers, contributing to their overall revenue. The size of this fee can vary and is often determined by various factors such as the exchange's policies and the volume of trading activity.

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