Understanding market liquidity
Before engaging in liquidity mining, it is important to know what lies behind the purpose of liquidity and how it works. Liquidity basically refers to the liquidity of a fund, marked as the ability to buy and sell assets without creating sudden changes in the market price of the asset. So, here are some key elements on how a new coin or crypto exchange works. Furthermore, they are based on a few parameters, including speed, spread, transaction depth, and usability. To visit us Uniswap clone Transaction speed For example, if liquidity is low, there is a high possibility of delays and limit orders can take hours or even days to process and execute. On the other hand, order processing takes only a few seconds for highly liquid pairs. Bid-ask spread The bid-ask spread is recognized as one of the key strengths of market liquidity. Reveals the variance between the selling price and the bid price of an asset. The narrower the spread between buy and sell orders, the more liquid the...