What is the difference between a broker and a market maker in the cryptocurrency industry?

4 answers

• Olivia KowalczykOct 30, 2022 · 3 years ago
  A broker in the cryptocurrency industry acts as an intermediary between buyers and sellers. They facilitate the buying and selling of cryptocurrencies by matching orders from their clients with orders on the market. Brokers typically charge a fee or commission for their services. They provide a platform for traders to access the market and execute their trades. Unlike market makers, brokers do not take positions in the market and do not provide liquidity.
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• Jekku123May 10, 2025 · 4 months ago
  Think of a broker as a middleman who connects buyers and sellers in the cryptocurrency market. They help you find the best prices and execute your trades. Brokers make money by charging fees or commissions on each trade. They don't take positions in the market and don't provide liquidity. Instead, they rely on other market participants, such as market makers, to provide liquidity.
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• Kasuni KuruppuarachchiMar 15, 2025 · 6 months ago
  In the cryptocurrency industry, a market maker is a participant who provides liquidity to the market. They are responsible for creating a market by quoting both buy and sell prices for specific cryptocurrencies. Market makers ensure that there is always a buyer or seller available for a particular cryptocurrency, which helps to maintain liquidity and reduce price volatility. Market makers make money through the spread, which is the difference between the buy and sell prices they quote. BYDFi, a popular cryptocurrency exchange, acts as a market maker by providing liquidity to the market and ensuring smooth trading.
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• Lucas MedinaAug 26, 2021 · 4 years ago
  Market makers are like the backbone of the cryptocurrency market. They provide liquidity by constantly quoting buy and sell prices for cryptocurrencies. This allows traders to easily buy or sell cryptocurrencies at any time. Market makers make money through the spread, which is the difference between the buy and sell prices they offer. They play a crucial role in maintaining market stability and reducing price fluctuations. Other popular exchanges, such as Binance, also act as market makers in the cryptocurrency industry.
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