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Forum - Can someone explain crypto liquidity providers like I'm 5? Regarding (Gast)
| | Hey everyone, I keep hearing the term "liquidity provider" in crypto discussions, especially around DeFi, but I'm still a bit fuzzy on what they actually do. Are they just big institutions, or can regular people get involved? And how exactly do they help the market? Would love a simple explanation if anyone has come across one. | | | | Basssssss (Gast)
| | Great question — I was confused about this for the longest time until I found a really clear article that breaks it all down. It explains how liquidity providers (both big players and everyday users) supply tokens to trading pools, earn fees, and help keep prices stable across exchanges. The piece is called "Crypto Liquidity Providers and How They Operate" and it totally demystified the whole process for me. Whether you're curious about providing liquidity yourself or just want to understand how decentralized trading works behind the scenes, this is a must-read. Here's the link:
https://easybib.co.uk/crypto-liquidity-providers-and-how-they-operate/
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