Liquidity Providers

Crypto liquidity providers provide liquidity to a cryptocurrency exchange or trading platform by placing limit orders on the order book. This means that they are willing to buy or sell a certain amount of cryptocurrency at a specific price. Doing so ensures that there are always buy and sell orders for other traders to execute trades against. For example, let's say that a crypto liquidity provider is willing to buy 1,000 units of Bitcoin (BTC) for $40,000. They would place…