Crypto101 - What is DeFi & Blockchain ?Hi Traders, Investors and Speculators📈📉
Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year.
Whether you've just gotten into crypto trading or you're trying to expand your knowledge on what this space has to offer; this post is for you!
Decentralized finance or DeFi, is a financial ecosystem based on blockchain technology. So lets recap, what Is a blockchain exactly?
Blockchain is a software technology, it is basically computer coding that creates a usable service like an app or website for the public. Most blockchains are entirely open-source software. This means that anyone and everyone can view its code. The first-ever implementation of Blockchain was originally written in C++ (coding language). Blockchain and it's possible use cases was first introduced to the world in the Bitcoin Whitepaper, written by the infamous Satoshi Nakamoto (the pseudonym used by the creator or creators of BTC).
A blockchain is an online database that is shared to many computer networks. This means that if one computer in the network fails, the data is unaffected and transactions carries on. It is not dependent on one single data storage facility. As a database, a blockchain stores information electronically in digital format. A blockchain collects information in groups, known as blocks, that holds many sets of information (like time of transactions, amounts etc.). Blocks have certain storage capacities and, when filled, are closed and linked to the previously filled block, forming a chain of data known as the blockchain. An online database usually structures its data into tables, whereas a blockchain, as its name implies, structures its data into "3D chunks" (blocks) that link to each other. For easy reference and transparency, each block in the chain is given an exact timestamp when it is added to the chain. The revolutionary innovation idea behind blockchain is that it guarantees the truthfulness and security of data and generates trust without the need for a government/private institution to validate it.
Back to DeFi - In centralized finance , your money is held by banks and corporations whose main goal is to make money . The financial system is full of third parties who facilitate money movement between parties, with each one charging fees for using their services. The idea behind DeFi was to create a system that cuts out these third parties, their fees and the time spent on all the interaction between them. Defi is a technology built on top of blockchain - it can be an app or a website for example, which means that is was written in code language by software programmers. It lets users buy and sell virtual assets (like crypto and NFT's) and use financial services as a form of investment or financing without middlemen/banks. This means you can borrow, lend and invest - but without a centralized banking institution. In summary, DeFi is a subcategory within the broader crypto space. DeFi offers many of the services of the mainstream financial world but controlled by the masses instead of a central entity. And instead of your information being filed on paper and stored by a banker, your information is captured digitally and stored in a block with your permission. Many of the initial DeFi applications were built on Ethereum (which is a blockchain technology, but the code is different to Bitcoin's, in other words it operates/works differently). The majority of money in DeFi remains concentrated there.
Lending may have started it all, but DeFi applications now have many use cases, giving participants access to saving, investing, trading, market-making and more. A prime example of such a market is PancakeSwap (CAKEUSDT). PancakeSwap is a decentralized exchange native to BNB Chain (Binance chain). In other words, it shares some similarities with established platforms like UniSwap in that users can swap their coins for other coins. The only difference is that PancakeSwap focuses on BEP20 tokens – a specific token standard developed by Binance .
The BEP20 standard is essentially a checklist of functions new tokens must be able to perform in order to be compatible with the broader Binance ecosystem of dapps, wallets and other services.
PancakeSwap uses liquidity pools instead of counterparties/orders from other traders. A liquidity pool in this context refers to funds deposited by investors – which can be anyone from around the world – into smart contracts for the aim of providing liquidity to traders. With this system, buyers do not have to wait to be matched with sellers, or vice versa. Whenever someone wants to trade one token for another, they simply deposit the token they have into the pool and withdraw the other token they wish to receive. That said, PancakeSwap is not just for swapping coins. You can also take up the role of a liquidity provider (that is, you can deposit tokens in a liquidity pool for the chance of earning a share of trading fees paid by those trading against the pool in question).
Yield Farming is another income-generating opportunity available on PancakeSwap. With this, you can farm for a token called CAKE. So why would you want a token? Tokens are like the money video-game players earn while killing monsters, money they can use to buy gear or weapons. I personally love collecting my Glimmer in Destiny 2. But with blockchains, tokens aren't limited. They can be earned in one way and used in lots of other ways. They usually represent either ownership in something or access to some service. For example, in the Brave browser, ads can only be bought using basic attention token (BAT). I think I'll cover more on this in another post, otherwise this will become a too long read.
Final Thoughts 💭
Even though banks are slow and inefficient (to name only a few of the problems), there is still something that comes with using a bank that crypto cannot (yet fully) offer - guarantees and peace of mind. At least at this point. I believe in a future where blockchain is easily accessible, open but at the same time protects user privacy, transparent, decentralized and safe. But the truth is, we're still far away from that. Blockchain is in its infancy, being used by too many opportunists and crooks. So be careful when you invest in DeFi. The beautiful dream of blockchain still contains too many scammers that have no intention of cutting out banks; instead they want to get to the bank FIRST.
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CryptoCheck
Cakeusdt
CAKEUSDTHello Crypto Lovers,
Mars Signals team wishes you high profits.
This is a one-week-time frame analysis for CAKEUSDT
Here we have R1 which used to be a support area. And S1 used to be a resistance line at which the disability of the price to rise is seen. Presently, the price is fluctuating over S1 and we expect it to fall to this line and then start its rising tend to R1. It is less probable for the price at the moment to have a fall below S1.
Warning: This is just a suggestion and we do not guarantee profits. We advise you to analyze the chart before opening any positions.
Wish you luck
Will CAKE in pair BTC beat its goals?Hello everyone, let's take a look at the 1D CAKE to BTC chart as you can see the price is moving in the local uptrend channel.
Let's start by setting goals for the near future that we can consider:
T1 - 0.0001561
T2 - 0.0001664
T3 - 0.0001768
and
T4 - 0.0001915
Now let's move on to the stop loss in case of further market declines:
SL1 - 0.0001463
SL2 - 0.0001407
SL3 - 0.0001326
and
SL4 - 0.0001225
Looking at the CHOP indicator, we can see that we have a lot of energy in the 1-day interval, and in the MACD indicator we see that the blue line is approaching the red cross from below, which would confirm the upward trend.
Pancake Analysis ,CAKE/USDT Update 📈📉HEY, what's going on Guys ?!
Since Dec 15, 2021, that I posted the last analysis for Pancake it has failed to rise again , actually after losing the support zone and hitting my SL ,it has been declining up until now .
but today as you can see on the weekly timeframe for cakeusdt, after
a massive crash and reaching current support zone stopped and now I think it want to attack pivot zone so then may fall again , but if it be able to take over this zone then breakout the descending trendline , so then after a nice pullback then it can reach the higher red resistance zone . but if it loses the current support zone so then it can even see lower support levels.
✌️ Good luck with your trading and investing and remember: Trade smart…OR JUST DON’T TRADE!
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👉This analysis is my personal opinion ,not a financial advice ,so do your own research.
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CAKEUSDT | Wave Projection | Ending Diagonal Breakout / Fakeout?Price action and chart pattern trading
> Elliott Wave downtrend projection with an ending diagonal pattern - possible breakout with one more final downtrend wave C minor
> Potential reversal @ SMA50 breakout of local trend correction wave and confirmed trend reversal once breakout of Elliott channel of global trend
> Indicator: MACD bullish divergence signal
> Target Price @sma200
@Always trade with affordable risk and respect your stoploss
Long Idea CAKEOn first observation this may not look like the best long position, but my reason for posting is that I think that it presents good risk reward.
Price and lagging strand are above the cloud, and have held well over the past several hours (1 hour time frame). Clearly defined stop loss here and also some obvious targets overhead, 3.264 being the best one in my opinion.
Best wishes to all!
CAKE USDT ELLO GUYS THIS MY IDEA ABOUT CAKE Usdt is nice to see strong volume area....
Where is lot of contract accumulated...
I thing that the buyers from this area will be defend this SHORT position...
and when the price come back to this area, strong SELLER will be push Up the market again...
DOWNTREND + Support from the past + Strong volume area is my mainly reason for this Long trade....
THANKS
TURTLE TRADER 🐢