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
Decentralized
A system where there are no centralized points of failure or organization with no central authority figure.
Wei
The smallest fraction of an Ether, with each Ether to 1000000000000000000 Wei.
Decryption
The process of decrypting data that was previously encrypted (made unreable) back to a readable form.
Hyperledger (Hyperledger Foundation)
Hyperledger is an open source collaborative effort to create blockchain technologies hosted by The Linux Foundation since 2016.
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