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
Leverage
It is an investment strategy to gain potential return of the investment by borrowing the money
Proof-of-Authority (PoA)
A consensus algorithm that asigns block validation queue based on identity and reputation.
Decentralized Finance (DeFi)
Decentralized Finance (DeFi) refers to the movement of building decentralized financial applications that have no central authority and is censorship free.
Hot Wallet
It is a tool that store your cryptocurrencies and always connected to internet
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