How does amm work crypto?

An automated market maker (AMM) represents a pioneering technology in the decentralized finance landscape. It functions as an autonomous protocol, designed to streamline cryptocurrency transactions on blockchain networks.

Another significant benefit of AMMs is their decentralized nature. Since transactions are executed directly on the blockchain, they are not subject to the same regulatory hurdles and intermediaries as traditional exchanges.

Unlike traditional centralized exchanges, where users trade directly with counterparties, AMMs facilitate trades through a unique mechanism. They harness the power of smart contracts to create liquidity pools, which serve as reservoirs of digital assets.

BTCC, a prominent cryptocurrency exchange, offers a range of services tailored to the needs of digital asset enthusiasts. Among its offerings are spot trading, futures trading, and a secure wallet solution. These services are designed to enhance the overall trading experience for users.

These liquidity pools are the cornerstone of AMM-powered decentralized exchanges (DEXs). They enable traders to execute transactions seamlessly, without the need for direct counterparty interaction.