Published a week ago
Who Is A Liquidity Provider?A liquidity provider (LP) is a person or organization that supplies assets, such as cash, stocks, or cryptocurrencies, to a market so others can easily buy or sell. In both traditional asset markets and cryptocurrency markets, liquidity providers usually deposit a combination (or ratio) of...
Published a week ago
What Are Gas Fees?Just like you need gas to get a car moving, gas fees are what you pay to miners or validators to verify and record transactions or to run smart contracts on the blockchain. These fees go to validators as compensation for the computational work required to perform these actions....
Published a week ago
What Is A Market Price?A market price is the current price at which an asset, like a stock, cryptocurrency, or commodity, can be bought or sold in the open market. This price is determined by the supply and demand in the market. For example, when more people want to buy a particular asset than sellers are...
Published a week ago
What Is A Bid-Ask Spread And Slippage?The bid-ask spread in a market is the difference between the highest price a buyer is willing to pay (the bid) and the lowest price a seller is willing to accept (the ask) for an asset. For example, if a stock's bid is $100 and its ask is $101, the bid-ask spread is $1. Sli...
Published a week ago
What Is Automated Market Making (AMM)?An automated market maker (AMM) is a type of decentralized trading system that allows users to buy and sell cryptocurrencies directly from a liquidity pool, instead of matching buyers and...
Published a week ago
What Is A Decentralized Exchange?A decentralized exchange (DEX) is a type of cryptocurrency exchange that allows users to trade directly with each other without relying on a central authority, company, or intermediary to hold their funds. They rely on blockchain-based ...