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Test Your Knowledge
Earn 100 Diamonds for every perfect score!
Question 1:
What does liquidity refer to in the cryptocurrency market?
A. The ease with which an asset can be bought or sold without causing significant price changes.
B. The total value of assets held on exchanges.
C. The total number of cryptocurrencies in circulation.
Question 2:
What does a narrow spread in an order book indicate?
A. Low liquidity in the market.
B. High liquidity in the market.
C. High transaction fees.
Question 3:
What is the relationship between liquidity and slippage?
A. High liquidity increases slippage.
B. Low liquidity increases slippage.
C. Liquidity has no effect on slippage.
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