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
Margin Trading
It is a way of investing by borrowing money from a broker (or in crypto, an exchange or platform) to trade
ERC-20
ERC-20 is one of the most widely used token standards in Ethereum to create fungible, exchangeable tokens.
Buy the F***in Dip (BTFD)
An encouraging rally by asset/cryptocurrency supporters to buy during a price decline
Futures
An agreement between two counterparties that obligates them to transact in the future based on the contract terms set.
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