Automated Market Makers Explained: Advantages, Disadvantages

Automated Market Makers (AMM) are considered an integral part of the cryptocurrency world by some. Why? You ask? This is because AMMs support decentralisation, which is considered to be one of the basic principles of cryptocurrency. This system supplements trading by streamlining digital assets. Hence, their role is crucial in conducting transactions. 

They also eliminate the need for any centralised authorities involved in the exchange. In other words, they allow the users to conduct transactions without any intermediary facilitating them. The said quality differs AMMs from conventional exchanges that use order books. Hence making crypto trading strategies  transparent and trustworthy.

This brings us to another important aspect of the system, i.e., accessibility. Anyone with a decent internet connection and a compatible wallet can use this system.

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