🔥🍀Liquidity (Ease of Access to Funds) 🍀🔥
- The amount of ease with which a Coin/Token can be bought or sold.
- Liquidity Pool (LP): The amount of cash and tokens held together for trading on DEXs (Uniswap, PancakeSwap).
🔥Why is it important?🔥
- More liquidity = Less slippage
(price fluctuation) and easier trading.
- Less liquidity = Prices drop quickly when selling, higher chances of scams.