What is the role of a market maker in Crypto Exchange Development?

submitted 6 months ago by Andrea23 to cryptocurrency

A market maker in Crypto Exchange Development plays a crucial role in maintaining liquidity by placing buy and sell orders for specific assets. They enhance trading activity, narrow spreads, and ensure smooth transactions. This boosts user confidence and overall exchange performance, attracting more traders and investors to the platform. Market makers also help prevent extreme price fluctuations and contribute to a stable trading environment.