Liquidity
By CoinGecko | Updated on Jun 13, 2023
Liquidity is a measure of resource sufficiency as it concerns a cryptocurrency market or a custodial institution. For tradable assets, it translates to investors’ freedom to make trades in any direction without significant slippage. For custodial institutions, it is the ability to satisfy withdrawal requests without significant delays or friction. A sufficiently liquid market or institution should be able to sustain this in harsh market conditions.
Related Terms
KYC (Know Your Customer)
KYC stands for "Know Your Customer", a process for business entities are required to verify its clients and assessing them.
Decryption
The process of decrypting data that was previously encrypted (made unreable) back to a readable form.
Mining Reward
The reward resulting from contributing computing resources to process transactions
Arbitrage
A strategy where investors buy a currency in a market and sell it at a higher price in another market to gain profit.
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