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Market Maker

A market maker is an individual or organization that provides liquidity to a cryptocurrency exchange by continuously offering to buy and sell assets at specified prices. By maintaining buy (bid) and sell (ask) orders, market makers help ensure that traders can execute transactions quickly and efficiently. They profit from the spread between bid and ask prices. Market makers are essential for maintaining market stability, reducing price volatility, and improving trading volume. In crypto, both centralized and decentralized exchanges rely on market makers to support an active market.