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
Exchange Traded Fund (ETF)
An exchange-traded fund (ETF) is a form of security that tracks a collection of securites such as stocks, bonds, index or cryptocurrency but tradeable like a single stock.
Frontrun
To intercept a particularly large AMM buy order for the purpose of purchasing an reselling the assets back to the buyer before the order transaction is mind on the blockchain.
Double Spending
Double spending refers to the act of spending digital currencies twice. This is most commonly applied on crypto exchanges by unscrupulous actors.
Cloud Mining
Mining on blockchains through rented processing power rented from companies that host the physical equipment.
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