Liquidity Definition: In cryptocurrency, liquidity refers to the ease at which digital assets can be bought, sold, or transferred. What This Means: For any market to operate efficiently, liquidity must be present. Liquidity, which means how easily an asset can be transferred to cash, is highest in markets with numerous participants. In addition to market participants, market makers are often employed to boost liquidity. Market makers buy the bid and sell the ask to satisfy the market, pocketing the difference, or the spread, as their profit. In DeFi, DEXs (decentralized exchanges) use smart contracts and
A Tasty Strategy for Liquidity Providing
A Tasty Strategy for Liquidity Providing
A Tasty Strategy for Liquidity Providing
Liquidity Definition: In cryptocurrency, liquidity refers to the ease at which digital assets can be bought, sold, or transferred. What This Means: For any market to operate efficiently, liquidity must be present. Liquidity, which means how easily an asset can be transferred to cash, is highest in markets with numerous participants. In addition to market participants, market makers are often employed to boost liquidity. Market makers buy the bid and sell the ask to satisfy the market, pocketing the difference, or the spread, as their profit. In DeFi, DEXs (decentralized exchanges) use smart contracts and