What are the differences between market makers and market takers in the cryptocurrency industry?

1 answers

• Dec 27, 2021 · 3 years ago
  Market makers and market takers are two key players in the cryptocurrency industry. Market makers are like the architects of the market, constantly providing liquidity by placing buy and sell orders. They create a stable market by setting bid and ask prices. Market makers profit from the spread between these prices. On the other hand, market takers are like the customers of the market. They accept the prices set by market makers and execute trades at those prices. Market takers do not provide liquidity but rather consume it. They pay transaction fees to the exchange for their trades. Both market makers and market takers are necessary for a functioning cryptocurrency market as they ensure liquidity and enable trading.
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