Market Maker
An entity that provides liquidity by continuously placing buy and sell orders on an exchange.
Explained Simply
Market makers are professional traders or firms that quote both buy and sell prices for a crypto asset, profiting from the spread between them. They provide essential liquidity that allows other traders to execute orders quickly. On centralized exchanges, market makers are typically large firms with sophisticated algorithms. On DEXs, automated market makers (AMMs) replace traditional market makers with smart contracts and liquidity pools. Market makers reduce price volatility and slippage.
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