#Liquidity101

"Liquidity" in the world of cryptocurrencies refers to the ability of a digital asset to be quickly and easily converted into cash or another currency without significant loss in price. The higher the liquidity, the easier it is to buy or sell the currency quickly without a major impact on the price. In trading platforms, liquidity comes from having a large number of buyers and sellers. In DeFi, liquidity pools are used, allowing users to provide their assets in exchange for earning profits from fees. Liquidity is essential for maintaining market stability and reducing sudden volatility.