Asslamo-alikum to all of my friends of Steem Alliance Community.Is everything is ok? my friends.All.of mine friends are fine and good.I'm here again for posting and today's post topic is liquidity in cryptocurrency.I will explain about liquidity in this post.I will share the important information about liquidity in cryptocurrency.Let's start!!!

Definition:- In cryptocurrency, liquidity refers to a process and in this process, all the traders convert their crypto assets into fiat money.This is the process in which they convert the digital money into fiat money.All of the traders, that are trading in the crypto market, make some profit or face loose , probably when they generate profit, they convert the assets into fiat currency, because in most time or place, we can just pay fiat currency.The process in which the traders convert the crypto assets into fiat assets/money within few seconds is the Liquidity in cryptocurrency.

Explanation :- Crypto liquidity impact the market in the stabilizing condition.Any trader who want cash money, they just have to convert into dollars and can easily sell them into the market and generate/get the cash money.The process of converting the digital money into cash money is the process of liquidity.This process is most important in the crypto market, because it put huge impact on the trading market and market stability.It doesn't change the value or decrease the value of assets.According to market price, the crypto assets can convert into cash and it's crypto liquidity.In the crypto market, there are both peoples, buyer and seller.When the traders convert the digital money into cash money the buyer pay for it.

When the trader, convert cash money into digital money, then the seller pay for it.In the cryptocurrency, liquidity is the one of major function which is very necessary to convert the money.Without converting the digital money into cash money, the trader can't use this money.For living a life we need cash money.So the trader convert the digital money into cash money with the help of Liquidity.It doesn't take so much time and just convert into few seconds.In crypto, liquidity is like a breath in the market.Because converting of the assets is very necessary for trading.It's very important and beneficial, why it's? I'm going to explain below:

From controlling the price fluctuation in crypto market to stable the market, all process needs Liquidity.Below I'm going to share some major reason of importance:

Control Price Manipulation:- First reason of it's Importance in crypto market is that, it control the price manipulation in the market.It doesn't allow anyone to manipulate the market price.So, that's why it's very important.

Stability Of Market:- Liquidity in crypto market, makes the market stable and the price can't decrease early, because it convert the digital money into cash money according to it's value.It can't convert it less or more.

Making Development For Investors:- It produce different development things for investors, by providing them secure contracts for buying and selling the cryptocurrency.It also make trusts for investors for investing for long term.

Reduce Risk:- Crypto liquidity reduce the risk of any type of scam or fraud, because it convert the digital money into cash money in real time and it doesn't take any fee or time.Within few seconds it convert the digital money into cash money.

Increase Trading Volume:- Crypto liquidity Increase the trading volume in the crypto market.It allowed to check the whole assets that are available on the exchange and according to that , traders convert the digital money into cash money.

Conclusion:- So friends, that's all about the Liquidity in Cryptocurrency.It mean convert the digital money into cash money.It is very important due to some major factors and i have explained them I hope mine friends will understand about liquidity in cryptocurrency after reading my post.