Take you to understand the indispensable role in the cryptocurrency circle in one minute---market makers

In the ever-changing cryptocurrency circle, there is a crucial role that is often overlooked, that is-market makers! They are like the lubricant of the cryptocurrency circle, making transactions flow.

🎯 Who are market makers? What role do they play in the cryptocurrency circle? Market makers are professional institutions or individuals who continuously provide buy and sell quotes in digital currency exchanges to ensure that the market has sufficient liquidity 24/7. They make profits through the bid-ask spread, and liquidity is the key when traders buy and sell. 🌊

📈 Why are market makers so important? Without market makers, the market may stagnate, and the bid-ask spread may become extremely high, affecting the efficiency and fairness of transactions. The existence of market makers ensures the continuity and stability of prices, just like the tides in the ocean, keeping the market vibrant. 🌊

📊 The daily work of market makers They constantly adjust the buying and selling prices through complex algorithms and market analysis, balance supply and demand, and prevent excessive price fluctuations. They also have to deal with sudden market events, respond quickly, and maintain market order. 🛡️

How do market makers benefit the cryptocurrency community?

1️⃣ Increase liquidity: Market makers ensure that there is always someone on the other side of the exchange by constantly buying and selling, providing liquidity to the market.

2️⃣ Narrow the spread: Competition among market makers leads them to offer better prices, thereby narrowing the bid-ask spread and bringing better trading conditions.

3️⃣ Stabilize prices: Market makers help reduce price fluctuations and maintain a stable market environment by providing stable buy and sell orders.

How do market makers suck blood from retail investors?

1️⃣ High-frequency trading: Use high-frequency trading strategies to buy and sell various currencies at high speeds and make profits from them.

2️⃣ Spread arbitrage: Through spread arbitrage strategies, buy low and sell high to make profits.

3️⃣ Liquidity capture: Through liquidity capture strategies, capture retail investors' trading orders and make profits from them.