#CircleIPO
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 impacting 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 lower spreads.
Low liquidity - resulting in fewer market participants, causing price volatility and the potential for slippage.
Liquidity pools - users contribute assets to decentralized exchanges (DEXs) to facilitate trading and earn rewards.