MARKET: invisible forces that guide the prices of cryptocurrency
Being the largest cryptocurrency market in the world, Bitcoin and other digital currencies have been in constant space of fjords. Price movements are guided by a complex series of factors, including demand and supply, feelings of investors and global financial conditions. A group of players, which is often ignored, but has a significant role in the design of these prices is the market.
What are the buyers of the market?
The adoptants of the market, also known as subscribers or liquidators, are communities that make the purchase and sale easier and sale in the cryptocurrency market. They provide liquidity on the market by performing shops on behalf of other participants. In other words, they give buyers and sellers the opportunity to answer mutual.
Types of market type:
There are different types of marketing experts, including:
- Mercato producers (mm)
: these communities buy or sell cryptocurrencies in their current market prices and then sell them to others who need the same currency.
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- Makers Market Makers : Some exchanges such as Binance or Kraken have built market features.
Professional market strategies:
The adopters of the market use a variety of strategies to use market instability and manipulate prices:
- Offer strategy : Purchase at low prices and immediately sold at the current market price.
- Trading : Establish shops at different entry and exit prices to maximize profits.
- Continuous trade : Continuous negotiation during the day to keep the margins of profit.
Impact on cryptocurrency prices:
Others market have a significant impact on cryptocurrency prices:
- Price processing : By creating a pressure and sales pressure, market adopters can influence prices variations.
- Risk management : market buyers help traders manage the risk by providing liquidity to the market.
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Examples of real world:
Several significant examples show the impact of market buyers:
- Bitfinex and Binance : Bitfinex has been accused of manipulating prices to create the wrong story on Bitcoin.
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Regulatory effects:
As the cryptocurrency market is growing and maturing, the regulatory bodies are increasingly studying the activities of the market others:
- money recycling regulations (AML) : prevent market buyers from facilitating illegal activities.
- Keep the customer (kyc) Requirements **: control of the identity of the market participants.
Conclusion:
Market adopters are an important part of the cryptocurrency market that affects prices through trading. Although some see them as manipulative actors, others recognize their role in maintaining liquidity and in the management of market variations. While the regulatory scene continues to develop, it is necessary that investors and traders include the effects of market buyers on cryptocurrency prices.
Advice:
For investors consider the following:
- Versatile Portfolio : Apply a risk between different cryptocurrencies and market participants.
- trained : Understanding the strategies used by market buyers and how they affect market dynamics.
- Stay up to date : Follow the regulatory updates and news about the other market.
For merchants, consider:
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