Back in the days of traditional trading, you must be an institutionalized organization (the big banks) in order to be a liquidity provider, but today, thanks to DeFi technology, through EXTERVEST you can now join a liquidity pool that provides liquidity across all trading markets, and earn daily ROI. Liquidity providers are fundamental for the success of electronic trading in today's financial market, since they ensure a steady supply of liquidity, which is simply an indicator of how quickly an asset can be turned into cash without fluctuating its current price.
Both crypto and Forex brokerages try to partner with many medium and large liquidity providers (internal and external) to maintain adequate liquidity and prices. In a decentralized crypto market, the constant buying and selling of currencies requires large reserve of various assets (and liquidity) to facilitate retail transactions. These reserves are created by users who provide liquidity in exchange for a share of transaction fees, usually 1% of each transaction.
Users who choose to invest their assets in such reserves (or liquidity pools) are called liquidity providers. They can choose how much of a particular asset they would like to invest in the pool, and receive a liquidity provider token, or LP, for their deposits. Thanks to liquidity pools, there is always a buyer and a seller in the market.