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
Public Blockchain
An open sourced blockchain where participation is public and permissionless
Bagholder
A person who is holding a large quantity of cryptocurrency which is declining in value or becoming worthless
Whitelist
List of approved participants that will be given access to a token sale (ICO, IEO, STO etc...)
Explain Like I'm Five (ELI5)
To explain in such simple terms that even a five-year-old would be able to understand it.
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