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I believe market makers are paid by exchanges to provide liquidity.
by shepardrtc 7y ago
I believe market makers are paid by exchanges to provide liquidity.
- account73466 7y agoWhat you are referring to exists in regular stocks markets but not in cryptomarkets (at least, when we talk about relatively reputable exchanges). Take Binance as the largest crypto-exchange. Market makers are the ones who put buy or less limit orders. Market takers are the ones who put market order to "eat" limit orders. Market markers are not paid to provide liquidity. However, their fees decrease from, e.g., 0.075% per trade to say 0.030% per trade if they trade millions $ per month.