Glossary
139 terms to sharpen your crypto trading knowledge
Latency
Latency is the delay between placing an order and its execution on an exchange, and minimizing it is critical for algorithmic traders who need to react quickly to market conditions.
Layer 2
Layer-2 refers to protocols built on top of existing blockchains to improve transaction speed and reduce costs by processing transactions off the main chain while leveraging its security.
Ledger
A blockchain ledger is a permanent, decentralized digital record of all transactions on a network, maintained across thousands of computers to ensure transparency and immutability.
Lightning Network
The Lightning Network is a layer-2 solution built on Bitcoin that enables instant, near-free transactions by routing payments through off-chain payment channels between users.
Liquidity
Liquidity describes how easily a cryptocurrency can be bought or sold without significantly moving its price, and it is a critical factor in determining how efficiently trades can be executed.