#CircleIPO

Liquidity is the extent to which assets (such as stocks or real estate) can be quickly and easily converted into cash without a significant loss in value. A highly liquid asset, such as cash or gold, can be sold quickly and at a price close to its market value. On the other hand, a low liquidity asset, like real estate, may take a long time to sell and may require a price reduction. Liquidity is important because it affects the investor's ability to make quick financial decisions. In markets, high liquidity means there are many buyers and sellers, which reduces price volatility. Good liquidity reduces risks and increases trading efficiency.$ETH