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guide to tax saving investments in india for beginners ✌️【365vc.net】✌️Small investments, big profits. Join today and grow your wealth quickly and safely!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.

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Liquidity is comparable to having lots of cashiers.

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guide to tax saving investments in india for beginners ✌️【365vc.net】✌️Small investments, big profits. Join today and grow your wealth quickly and safely!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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guide to tax saving investments in india for beginners ✌️【365vc.net】✌️Small investments, big profits. Join today and grow your wealth quickly and safely!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).

guide to tax saving investments in india for beginners ✌️【365vc.net】✌️Small investments, big profits. Join today and grow your wealth quickly and safely!After a certain amount of time, LPs are rewarded with a fraction of fees and incentives, equivalent to the amount of liquidity they supplied, called liquidity provider tokens (LPTs).guide to tax saving investments in india for beginners Maximize Your Stock Returns: Start with ₹500