#Liquidity101 Which of the following statements is/are true? Choose all that apply.
Decentralization as a social and administrative concept came into use during and after the French Revolution.
Computer science has a long-standing discipline in the research of distributed systems.
Distributed computing enabled the movement of peer-to-peer communications on the internet in the late 80s.
Blockchain has facilitated many forms of decentralization.
Decentralization is always a binary and black-and-white issue.
Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. Assets with high liquidity, like major stocks or currencies, can be traded quickly and with minimal price impact. Those with low liquidity might see larger price swings when trades occur.
For traders and investors, liquidity is crucial because it affects how easily they can enter or exit positions. High liquidity generally means tighter bid-ask spreads and less slippage, while low liquidity can lead to wider spreads and more price volatility.