You may have heard of market makers. But how do market makers “manipulate” the market and profit from it? And what are the benefits for traders to pay close attention to market makers?
Previously, some retail investors said that they made more than $130,000 by paying attention to market makers. Therefore, it is very important to understand market psychology and not be affected by market makers' manipulation in the current market. Usually, the behavior of market makers will cause large fluctuations in tokens. Learning to understand the actions of market makers can gain more benefits.
Today Feilong will share with you the "manipulation" methods of market makers.
Market makers are companies that enhance market liquidity and depth, and their main task is to create demand and supply. Market makers have a large number of tokens, and they can "manipulate" the market and profit from price differences.
Among all market makers, there are generally two types:
1. Market Maker as Project Advisor
2. Traditional Market Makers
Both types have the same end result, but the tasks are slightly different. Partnerships are one of the most popular ways to “manipulate”.
Market makers are primarily responsible for:
●Sound token economics and TGE construction
●Successful token listing
●Raise funds from fund institutions
Traditional market makers never participate in low-market-cap projects. They are mainly responsible for:
●Support market liquidity
●Narrow the gap between supply and demand
● Promote efficient transactions
The sharp market fluctuations are precisely the "masterpiece" of these market makers. #BTC