📢 Have you heard of "liquidity" in the crypto world?
Understand this simply and never feel lost again! 👇
🔹 What is liquidity?
It is the ease with which you can buy or sell an asset without significantly affecting its price.
More liquidity = fast and fair transactions.
🔹 And in DeFi, what is liquidity?
You can lend your tokens to a liquidity pool (like a pool of coins 💧).
This allows other people to make swaps, and you earn transaction fees as a reward.
💡 Example:
You put BNB + USDT in a pool.
Whenever someone swaps BNB for USDT, you receive a portion of the fees! 🔁
⚠️ But beware:
There is a risk called "impermanent loss".
If prices change significantly, you may end up with less value than you put in.
🎯 Why does this matter?
Understanding liquidity is the first step to exploring DeFi in a conscious and profitable way.
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