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
Airdrop
A way to promote cryptocurrencies by sending some free tokens to traders
Hard cap
The maximum amount that an ICO will be raising.
Transaction Fee
A payment to the network for performing a transaction to be recorded on the blockchain.
Sharding
A form of database partitioning which breaks up data into smaller segments.
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