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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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fund diversification ✌️【365vc.net】✌️₹500 is all it takes to start earning up to 100% monthly. Take control of your financial future!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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