🌷What is a Market Maker in the cryptocurrency world?
🐶Dog trader. An institution or individual that provides liquidity in the market by continuously quoting buy and sell orders to ensure that there is sufficient trading depth, allowing traders to execute trades quickly while earning a profit.
✨Why do we need dog traders:
💧Provide liquidity: Ensure that the market does not stagnate due to a lack of trading counterparties,
💧Stabilize market prices: During periods of extreme market volatility, market makers absorb selling pressure or provide buying support with large orders, preventing price crashes or surges.
💧Narrow the bid-ask spread: By quoting densely, the gap between buy and sell prices is reduced, lowering traders' slippage costs.
✨However~ can you guess why they are called dog traders?🐶