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Managing Crypto Taxes and Regulatory Compliance ✌️【Remote Work】✌️Invest ₹500 and let blockchain-powered tools grow your wealth!Liquidity is a fundamental part of both the crypto and financial markets.

It is the manner in which assets are converted to cash quickly and efficiently, avoiding drastic price swings.

If an asset is illiquid, it takes a long time before it is converted to cash.

You could also face slippage, which is the difference in the price you wanted to sell an asset for vs.

Managing Crypto Taxes and Regulatory Compliance ✌️【Remote Work】✌️Low investment, big rewards! ₹500 to start and grow your money consistently.The price it actually sold for.Imagine waiting to order inside a fast-food restaurant.

Liquidity is comparable to having lots of cashiers.

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Managing Crypto Taxes and Regulatory Compliance ✌️【Remote Work】✌️Invest ₹500 and let blockchain-powered tools grow your wealth!On the other hand, illiquidity is comparable to having only one cashier with a long line of customers.

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In contrast, DeFi relies on liquidity pools to function.

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It won’t survive.

Liquidity pools provide a lifeline to DEXs.A liquidity pool is a digital pile of cryptocurrency locked in a smart contract.

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Managing Crypto Taxes and Regulatory Compliance ✌️【Remote Work】✌️Invest ₹500 and let blockchain-powered tools grow your wealth!An AMM is a protocol that uses liquidity pools to allow digital assets to be traded in an automated way rather than through a traditional market of buyers and sellers.In other words, users of an AMM platform supply liquidity pools with tokens, and the price of the tokens in the pool is determined by a mathematical formula of the AMM itself.Liquidity pools are designed to incentivize users of different crypto platforms, called liquidity providers (LPs).

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