Airdrops are a great way for projects to gain exposure, but the token's long-term value depends on the project's foundation. Airdropped tokens from solid, utility-driven projects tend to maintain or increase in value, whereas tokens from speculative projects may lose worth quickly.
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Market makers are entities or individuals who provide liquidity to cryptocurrency exchanges by continuously offering buy and sell orders for specific assets, typically at different price levels. They profit from the spread between the bid and ask prices. By ensuring there are always buy and sell orders, market makers enhance liquidity, allowing traders to execute orders more easily without significant price fluctuations. This helps to reduce slippage and price volatility, contributing to a more stable market environment. In the absence of market makers, exchanges could experience wider price spreads, lower liquidity, and higher volatility, which would negatively impact traders and the overall market efficiency.
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Market depth analysis examines the order book to identify key support and resistance levels based on the size of buy and sell orders. Large buy orders at support levels indicate strong demand and can signal a potential price rise. Conversely, large sell orders at resistance levels create barriers that may limit upward price movement. When these orders are absorbed or broken through with strong volume, it suggests a potential breakout. By watching the order book closely, traders can anticipate where price movements may accelerate, helping them time entries and exits more effectively.
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