Liquidity Pool in Robinia Swat

The crypto market is managed in a very similar way to the traditional stock market, the difference is that there is no specific space for it and each computer becomes a possible buyer and seller.

As in the field of stocks there are people who study every movement of a group of tokens that catches their attention or that are important in the market and are the most traded, these are: Bitcoin, Ethereum, Ripple XRP, Litecoin, NEO and IOTA among others that are gaining a space in the market.

These perform technical analysis of the behavior of these and with an acceptable precision they manage to take advantage of the highs and lows of the same, however sometimes unforeseen factors break the schemes and the markets suffer unexpected cataclysms.

Like stocks, the market is governed by demand and supply, and this results in the price of currencies, there are those who for various reasons place orders with a lower value to sell theirs quickly and there are those who on the contrary bet on obtaining more profit than they keep.

When there is a large group of orders with the same price for a currency, both for buying and selling, this causes a resistance that prevents it from continuing to rise or fall, experts call this a Liquidity Pool.

This can favor the stability of the currency, or on the contrary slow down its advance, everything is relative, those who wait for it to go down to sell are affected and those who aspire to higher prices are affected as well, this group of orders becomes a brake or traffic light.

In currencies such as RBS, which is at an early stage, the creation of these Liquidity Pools could be a good strategy to prevent its value from falling rapidly due to indiscriminate selling and thus gain the confidence of investors to add it to their currency portfolios.