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What is Liquidity?

Liquidity refers to the ease with which an asset can be converted into cash without affecting its market price.

What does high liquidity mean?

High liquidity means assets can be bought or sold quickly with minimal price changes.

Why is liquidity important for asset holders?

Liquidity determines how easily you can turn an asset into cash. High liquidity means you can buy or sell quickly without significantly changing the price, providing flexibility and stability in financial transactions.

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