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Liquidity

Intermediate

Liquidity in crypto refers to how easily an asset can be bought or sold without significantly affecting its price. High liquidity means there are many buyers and sellers, allowing for quicker and more stable trades, essential for active trading and overall market health. Assets with low liquidity may experience large price swings and can be harder to sell. Exchanges and liquidity pools play a major role in improving liquidity, making it a key factor when choosing what and where to trade.

Related Words

Liquidity Pool

Intermediate

A liquidity pool is a collection of digital assets locked in a smart contract to facilitate decentralised trading. Users earn a share of trading fees by contributing their tokens, powering systems like Uniswap and Curve.

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Trading in Virtual Assets involves significant risk, including the potential loss of your entire capital. None of our communications are intended to provide investment, legal, or financial advice, nor to induce you to trade in such instruments. You should assess your risk tolerance and seek independent expert financial advice before trading. You must ensure that your use of BitDelta’s services complies with all applicable laws and regulations, as further detailed in our Terms and Conditions. Please carefully review our Terms and Conditions, Risk Disclosure Statements, and Security and Privacy Policies to understand the risks involved and the limitations on our liability before using our services.​
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