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
Dusting Attack
A new form of malicious activity in which hackers and scammers attempt to undermine the privacy of cryptocurrency users by sending little amounts of money to their wallets.
Blockchain
In Bitcoin's case, blockchain describes its decentralized, public ledger which contains transactional information.
Batch Auction
A Batch Auction distributes an amount of tokens to users that is proportional to their contribution to the pool.
Gas Price
A term refers to the amount of price user is willing to pay for a transaction on Ethereum blockchain.
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