Market making is becoming increasingly important in the cryptocurrency market, and among businesses availing cryptocurrency exchange development services, to ensure high liquidity. Market makers play a pivotal role in building valuable cryptocurrency exchange platforms and establishing efficient market mechanisms. A market maker can be a financial institution or an individual that provides bids and come up with prices corresponding to cryptocurrencies. In addition, market makers provide sufficient liquidity to reduce price volatility and enable traders to buy and sell digital assets for reasonable prices.
Liquidity, defined as the ability of a coin to be converted into cash or other coins without compromising cryptocurrencies’ value, is pivotal for every cryptocurrency exchange. A high liquidity indicates a vibrant and stable market where participants can trade quickly, easily and at fair prices. Considering the same, majority crypto exchange development processes are focused on reinforcing exchange platforms with features that help improve liquidity.
Read more @ Why is Liquidity Important to Cryptocurrency Exchange?
Read more @ Why is Liquidity Important to Cryptocurrency Exchange?
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