#TradingPairs101

Market Makers - Entities that provide liquidity by placing buy and sell orders to ensure flow.

Liquidity is the lifeblood of the cryptocurrency market; it determines how easily assets can be bought or sold without affecting the price.

Understanding liquidity helps traders make informed decisions and manage risks effectively.

The higher the liquidity - the greater the number of buyers and sellers, leading to smoother transactions and narrower spreads.

Low liquidity - resulting in fewer market participants, causing price volatility and the potential for slippage.

Liquidity pools - Users contribute assets in decentralized exchanges (DEXs) to facilitate trading and earn rewards.