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
Futures
An agreement between two counterparties that obligates them to transact in the future based on the contract terms set.
Leverage
It is an investment strategy to gain potential return of the investment by borrowing the money
Soft Fork
A backward-compatible update to a decentralized blockchain protocol.
Airdrop
A way to promote cryptocurrencies by sending some free tokens to traders
Interested to stay up-to-date with cryptocurrencies?
Get the latest crypto news, updates, and reports by subscribing to our free newsletter.
Or check it out in the app stores
