L

Layer 1 (L1)

L1 blockchains operate independently with their own consensus systems. Some examples of L1 blockchains include Ethereum, Solana, and Bitcoin.

Layer 2 (L2)

L2 networks scale L1 blockchains by processing transactions off-chain. They are built on top of an existing blockchain and help reduce fees and improve speed.

Limit Order

A limit order is placed to help buy or sell an asset at a specific price. It gives traders more control than market orders.

Liquidity

Liquidity measures the ease of buying or selling an asset without causing fluctuations. High liquidity reduces price impact for an asset.