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
Gas
A unit of measurement of the computational effort in conducting transactions or smart contracts on Ethereum blockchain.
Utility Token
cryptocurrency tokens with specific utilities on a network besides being used as medium of exchange and investment vehicle.
Airdrop
A way to promote cryptocurrencies by sending some free tokens to traders
Directed Acyclic Graph (DAG)
Directed acyclic graphs refers to a data structure that is built in one single direction, yet branches out and never repeats.
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