Asslamo-alikum to all of my friends of Steem Alliance Community.Is everything is ok? my friends.Hoping all members are really good and I'm also well.Today I'm here again with the new topic for posting about cryptocurrency.Today's post is all about liquidity pool in cryptocurrency.How does the liquidity pool work and advantages of pool.

Definition:- Liquidity pool in cryptocurrency is a smart contract of the decentralized exchange, that has the ability to store different crypto assets for the trade between two persons.A liquidity pool has the ability to store two or more crypto assets in cryptocurrency and exchange them in time when two people trade.In cryptocurrency, whenever we buy or sell something, the contract between two people is a liquidity pool.

Liquidity Pool Cryptocurrency is a contract between two people for buying and selling. The advantage is that when two people trade in an exchange, buying or selling something, they are separated by a centralized, For security, they just seal and buy their item through this contract and none of it is damaged.Liquidity Pool is also very important in Cryptocurrency because whenever any two people trade there is a huge gap between them they are not close to each other they are far apart so liquidity pool improves security.

Explanation:- Whenever we do any trade in cryptocurrency i.e. buy and sell anything, there are many things that are being handled, including the token sale that exchange is selling.The market price of the tokens being exchanged for the price is the contract to handle all the things we use is the smart contract.Because we don't immediately know what the price of any token is going on in the market and what tokens we will get in return if we sell or sell it, so in both of these It is used whenever we have to do any trade.

In addition, there are many cryptocurrency investors who invest in a liquidity pool, i.e. buy a large number of crypto tokens and place them in the liquidity pool, and whenever a trade takes place between two people, a Even on the exchange, they take some percentage from them, that is, it is profitable.Remember that the liquidity pool is different for any exchange, but their purpose is the same for all exchanges, to improve the trade between two people, to make it faster and secure it.

Liquidity Pool makes P2P transactions between two people, which is a very secure transaction process in cryptocurrency, in that when we want to buy any token, we go to the market. When we see the price, we click on buy, we enter the quantity we need, then we get the price below it, then we send the price to the receiver and send it to the receiver. In return, the second sander sands us the token.Whenever a liquidity pool trades between two people in cryptocurrency, it first collects their assets, stores their assets internally, and then trades between them.

Advantages:- The biggest advantage of liquidity pool is that before long ago when liquidity pokes were not on the exchange, transactions between two people i.e. buying and selling was very slow and many people were scammed by one person. used to sand then the other guy didn't sand to make this thing better and faster and they have coins and complete transactions between two people that are also very fast.Whenever we buy or sell anything in cryptocurrency, a contract is very important, so this liquidity pool is a contract.

If you want to improve any exchange in cryptocurrency, its security is very important because there is a lot of money for investment and trading of people, so the liquidity pool to improve it is very important because it is two people. The fair end completes the transaction between the two, both of which do not suffer losses, and both receive proper assets according to their amounts, and these are the benefits.These are the major advantages of liquidity pool in cryptocurrency.

Conclusion So friends, that's all about liquidity pool in cryptocurrency.It is a smart contracts between two person while buy or selling in crypto market.It stores the assets of both persons and did a secure trade among them.It has so many advantages and i have explained some major.Hope mine all friends will understand about liquidity pool in cryptocurrency after reading this post.