What is liquidity providers?
Why is Crypto Liquidity important?
In terms of cryptocurrencies, liquidity is the ability of a coin to be easily converted into cash or other coins
The liquidity provider acts at both ends of currency transactions. He sells and buys a particular asset at certain prices.
It means that he is making the market. Stockbrokers have liquidity providers who make the commitment to provide liquidity in a given equity.
In terms of cryptocurrencies, liquidity is the ability of a coin to be easily converted into cash or other coins
- Low liquidity
Low liquidity levels mean that market volatility is present, causing spikes in cryptocurrency prices.
- High liquidity
High liquidity, on the other hand, means there is a stable market, with few fluctuations in price


The most common type of liquidity providing in the crypto space is known as MT GOX Liquidity providers (LP) helps convert any token innitial value directly to btc transferred into the owners blockchain account.