How does trade mining contribute to the liquidity of digital assets?

3 answers

• PodarokxxxJun 02, 2023 · 2 years ago
  Trade mining is a mechanism where users are rewarded with tokens for trading on a particular exchange. This incentivizes traders to actively participate in the market, which increases the trading volume and liquidity of digital assets. By offering rewards in the form of tokens, exchanges can attract more traders and create a vibrant trading ecosystem. The increased liquidity benefits all participants by reducing slippage and improving price stability.
  455

  228
• Claire DugenetNov 19, 2022 · 3 years ago
  Trade mining is like a win-win situation for both traders and exchanges. Traders get rewarded for their trading activities, while exchanges benefit from the increased liquidity. This is achieved by giving traders a certain percentage of the trading fees they pay back in the form of tokens. These tokens can then be used for various purposes within the exchange or traded on other platforms. Overall, trade mining helps to create a more liquid market for digital assets, making it easier for traders to buy and sell their assets at fair prices.
  544

  182
• fahmi mubarokNov 01, 2021 · 4 years ago
  Trade mining, also known as transaction mining, is a controversial practice in the cryptocurrency industry. It involves exchanges giving back a portion of the trading fees to traders in the form of their own exchange tokens. While some argue that trade mining helps to boost liquidity and attract more traders, others believe that it can create artificial volume and distort the market. Regardless of the debate, trade mining has gained popularity in recent years and has been adopted by several exchanges as a way to incentivize trading and increase liquidity.
  561

  141