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Understanding Tokenomics- Short Guide for Crypto InvestmentsEveryone dreams of finding that 100x crypto gem, but if you want to have a fighting chance beyond just buying random coins and praying that one hits, there’s one thing you need to do: master tokenomics. Tokenomics is the key to a crypto project’s price performance, and nearly every 100x crypto gem in history has had great tokenomics. This guide will teach you tokenomics from top to bottom, making you a savvier investor. What is Tokenomics? Tokenomics refers to the economic structure and financial model behind a cryptocurrency. It encompasses everything from supply and demand dynamics to token distribution and utility. Understanding these factors can give you a significant edge in identifying potential high-reward investments. Supply and Demand At its core, tokenomics boils down to two things: supply and demand. These two elements have a massive impact on a token's price. Even if a project has the best tech and marketing, it may not translate into great price performance unless it also has solid tokenomics. Supply-Side Tokenomics Supply-side tokenomics involves factors that control a cryptocurrency's supply. There are three types of supplies, but for the purposes of finding 100x gems, we focus on two: maximum supply and circulating supply. Maximum Supply: This is the maximum number of coins that can ever exist for a particular project. For example, Bitcoin has a maximum supply of 21 million, which means there will never be more than 21 million Bitcoins in existence. Circulating Supply: This is the amount of coins that are circulating in the open markets and are readily tradable. Websites like CoinMarketCap or CoinGecko can provide these values for most crypto projects. Example: Bitcoin has a maximum supply of 21 million, making it a highly sought-after asset, especially in countries with high inflation. In contrast, Solana has a circulating supply of over 400 million but a maximum supply of infinity due to inflation, where the supply increases forever as the network creates more coins to reward miners or validators. Inflation and Deflation Inflation: Some projects have constant token inflation, where the supply goes up forever. While we generally prefer not to have inflation in tokenomics, some inflationary coins perform well as long as the inflation is reasonable. To determine if inflation is reasonable, convert the yearly inflation percentage to a daily dollar amount and compare it to market demand. Deflation: Some projects have deflationary mechanisms where tokens are removed from circulation through methods like token burns. For example, Ethereum burns a part of the gas fee with every transaction, potentially making it net deflationary. Rule of Thumb: Prefer projects with deflationary tokenomics or a maximum supply. Some inflation is okay if it’s reasonable and supported by market demand. Market Cap Market cap is another critical factor, defined as circulating supply multiplied by price. To find coins with 10x or even 100x potential, look for ones with lower market caps. For instance, a cryptocurrency with a market cap under $100 million, or even under $50 or $10 million, offers more upside potential but also carries more risk. Example: Binance Coin (BNB) has a market cap of around $84 billion 579 USD at the time of writing). For a 10x gain, it would need to reach a $870 billion market cap, which is highly unlikely anytime soon. Hence, smaller projects with lower market caps are preferable. Unit Bias The price of the token can affect its performance due to unit bias, where investors prefer to own a large number of tokens rather than a fraction of a more expensive one. This psychological phenomenon makes smaller unit prices preferable for 100x gems, assuming all else is equal. Fully Diluted Value (FDV) FDV is calculated as maximum supply times price. Be cautious of projects with a large difference between their market cap and FDV, as it indicates potential future dilution. A good rule of thumb is to look for an FDV of less than 10x the current market cap. Trading Volume High trading volume relative to market cap ensures that the market cap number is reliable. A volume-to-market-cap ratio above 0,001 is decent. Initial and Current Distribution Initial Distribution: Check how widely the tokens were initially distributed. Avoid projects where a significant percentage of tokens are held by founders or venture capitalists. Current Distribution: Use tools like Etherscan to analyze the current distribution of tokens. Look for a large number of unique holders and a low percentage held by the top 100 holders. Vesting Schedule: Analyze the vesting schedule to understand when team or investor tokens will be unlocked, as these can impact the token's price. Demand-Side Tokenomics Demand-side tokenomics refers to factors that drive demand for a token, such as its utility and financial incentives. Token Utility The primary driver of demand is a token’s utility. Strong utilities include: Paying for gas fees on a network Holding to access a protocol Getting discounts on trading fees Governance tokens generally lack strong utility unless they are actively used and valued by the community. Financial Incentives Staking rewards and profit-sharing models, like those offered by GMX, incentivize holding tokens long-term. Sustainable financial incentives drive demand. Growth and Marketing Allocation Allocations for growth initiatives, such as influencer marketing, community rewards, or airdrops, help generate demand indirectly. Look for projects with healthy allocations for growth and marketing. Conclusion Tokenomics is the most crucial factor in analyzing and finding potential 100x crypto gems. However, other aspects like the underlying technology, marketing, and community also play significant roles. Combining a thorough understanding of tokenomics with broader fundamental analysis will enhance your investment decisions.
BITSTAMP:BTCUSDEducation
by Mihai_Iacob
Blum Project Analysis!!!Today, I want to introduce you to another Tap-To-Earn project and see if it is worth your time. In the previous articles, I explained Notcoin and the Hamster Kombat project. If you have time, take a look at these articles. The name of this project is Blum . Please stay with me. ----------------------------------------------------------------------- What is Blum? The Blum Token is a cryptocurrency associated with the Blum Crypto Project on Telegram . While specific details about the creators and core team might be limited, the project focuses on community engagement, utility, and promoting blockchain adoption. The token serves various purposes within the project’s ecosystem, from facilitating transactions to enabling governance and rewarding community participation ----------------------------------------------------------------------- Now, let's check the Blum project with the help of SWOT ( Strengths-Weaknesses-Opportunities-Threats ). What is the SWOT !? SWOT (Strengths-Weaknesses-Opportunities-Threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential. 🔸 Strengths : The game's style makes it difficult for the bot to jam every token_The active Telegram community currently has 11 million followers Blum selected by Binance labs team as featured airdrop 🔸 Weaknesses : No whitepaper _ Poor website _ Boring game _ The total number of tokens is not clear - the distribution method may not be fair _ the development team is unclear_The goal of the project is very general_ Low number of followers compared to other competitors on X platform _ Currently, you can become a member by invitation only_ It only has roadmap until the end of 2024_ The game environment is very simple. 🔸 Opportunities : Hard Forks to improve the Blum project_ Willingness of big investors to invest _ Improving the website and white paper_ Improve the game environment 🔸 Threats : High number of miners _ Emergence of Whales _Unspecified fee_ Hackers _ Competitors_Laws and regulations of countries Can you add other parameters to the options above or not!? ----------------------------------------------------------------------- Conclusion : Due to the fact that there are more Tap-to-Earn games these days, we should be a little careful in choosing the game, because no matter what you like, you will eventually have an income for the time you spend. According to the description above, if you want to enter the BLUM project, you should only consider it a hobby and not spend a lot of time on it because it has many ambiguities and weaknesses. Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
Education
by pejman_zwin
14
Crypto wallets beginners guideUnderstanding Cryptocurrency Wallets What is a Cryptocurrency Wallet? When we think of a wallet, we usually imagine a pocket accessory holding cash and cards. However, digital currencies don't exist in a physical form or specific location. Cryptocurrencies, account balances, and transactions exist on a blockchain. What is Blockchain? Blockchain is a term for a continuously updated ledger of transactions. How Do Cryptocurrency Wallets Work? A cryptocurrency wallet has software that creates and stores your private and public keys, interacts with the blockchain, monitors your balances, and allows you to send and receive cryptocurrency. Think of it as a key to access your funds on the blockchain. Simplified Analogy: Online Banking Imagine your bank is the blockchain, your bank account number is the public key, your crypto wallet is your online banking app, and your login credentials are your private key. • Bank as Blockchain: The bank records all transactions to and from your account, just like the blockchain records transactions to and from your public key. • Online Banking App as Crypto Wallet: You use the app to check balances and make transactions, similar to how you use a crypto wallet. • Login Credentials as Private Key: Your username and password are needed to access your account, just like your private key is needed to access your cryptocurrency. • Public Key as Bank Account Number: Providing your bank account number allows people to send you money, similar to how a public key allows people to send you cryptocurrency. However, they can’t take funds without your private key. Importance of Private Keys: It's crucial to keep your private key private. If someone gains access to it, they can transfer your funds, and unlike traditional banking, there's no way to recover lost cryptocurrency. Types of Cryptocurrency Wallets Cryptocurrency wallets are broadly categorized into hot and cold wallets. Hot Wallets Hot wallets create and store your private keys online, making them more vulnerable to hacks. Examples include desktop or mobile app wallets. Cold Wallets Cold wallets, or hardware wallets, create and store your private keys offline, offering the highest level of security. Examples include devices like BC Vault and the Ledger Nano Backup Pack. Setting Up Your Own Crypto Wallet Step-by-Step Guide: 1. Download the App: Go to the App Store or Google Play and search for the wallet you want and Download the app. 2. Create a New Wallet: Open the app and tap “Create New Wallet.” 3. Accept Terms: Review and accept the terms of service. 4. Pick a Username: Choose a username for receiving crypto easily. 5. Set Privacy Preferences: Choose whether to allow others to search for you by username. 6. Add Security: Use face ID or set up a 6-digit passcode for extra security. 7. Back Up Your Wallet: Write down the 12-word recovery phrase on paper and store it securely. This phrase is your private key. Transferring Crypto from an Exchange 1. Log in to Your Exchange. 2. Send Crypto: Tap “Send,” choose the cryptocurrency, and enter the amount. 3. Enter Wallet Address: Use the QR code or paste the address from your wallet. 4. Confirm and Send: Verify the details and complete the transaction. Eureka Moment: The Importance of Recovery Phrases If someone gets hold of your 12-word recovery phrase, they can access your funds. This demonstrates the critical importance of keeping your private key secure. Conclusion: Storing your cryptocurrency on a hardware wallet is the safest, most secure way to manage your funds. Follow the steps outlined to set up your wallet, transfer your funds securely, and always protect your private key. For further security, use the official links provided to purchase recommended hardware wallets. Stay safe and happy investing!
BITSTAMP:BTCUSDEducation
by Mihai_Iacob
5
How to Keep Your Seed Phrase Safe?Steps to Keep Your Seed Phrase Safe: Write Down the Seed Phrase Correctly: Allocate 30-60 minutes in a quiet, private place without strangers or video surveillance. Use a pen and paper to write down the seed phrase accurately. Verify the Seed Phrase: Double-check the spelling and word order to ensure correctness. An incorrect seed phrase will not restore access to your assets. Choose a Safe Storage Location: Store the written seed phrase in a secure location, such as a safe or a document storage with a combination lock or biometric access. Do Not Memorize the Passphrase: Even if you can remember the seed phrase, always keep a written version as a backup. Use Reliable Materials: Consider using water-resistant paper or titanium plates to write down your seed phrase. If using regular paper, ensure it's sturdy and use ink or pencil that won't fade over time. Avoid Digital Storage: Do not take pictures of your seed phrase with a smartphone. Do not store your seed phrase on a computer, smartphone, or any electronic device to avoid the risk of hacking or theft. Keep the Seed Phrase Private: Never share your seed phrase with anyone. Even wallet support services should never ask for your passphrase. Avoid Entering the Seed Phrase Online: Never enter your seed phrase on any website, even if it claims to be for verification, technical support, or authorization. Inform Trusted Individuals: Let close, trusted individuals know about the existence of the seed phrase in case they need to access it in an emergency. Regularly Check the Seed Phrase: Periodically verify that the seed phrase is still in place and undamaged. If any signs of damage appear, generate a new seed and transfer your assets to a new wallet. Consider a 25th Word: Some hardware wallets offer the option to add a 25th word, which you can create to add an extra layer of security. This additional word is only known to you and increases the security of your wallet. By following these tips, you can significantly enhance the security of your seed phrase and ensure that your cryptocurrency assets remain protected. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
Education
by Crypto4light
Why Are Token Standards Needed?Token standards are crucial because they guide developers on creating and using tokens within a particular blockchain protocol, ensuring compatibility and interoperability among products developed using the same standard. Token Standards Token standards are essentially a set of agreed-upon rules that outline the design, development, behavior, and operation of cryptocurrency tokens on a specific blockchain protocol. For these standards to be effective, they must gain wide adoption. Without broad acceptance, these rules cannot be considered "standards" since standards are rules generally followed by a large community. Why Are Token Standards Needed? Compatibility: Token standards ensure that all products built using that standard can work together seamlessly. Composability: In programming, a composable system allows developers to reuse existing components to create new products, which is also applicable to token creation. Efficiency: Token standards enhance interoperability between smart contracts. When smart contracts follow token standards, they can manage all tokens on the network effectively. Common Token Standards ERC-20: The most popular token standard on Ethereum, allowing for the creation of fungible tokens. Examples include Shiba Inu, Tether, Uniswap, and ApeCoin. BEP-20: A token standard on the Binance Smart Chain (BSC), sharing similar properties with ERC-20 due to their architectural similarities. ERC-721: This standard allows for the creation of non-fungible tokens (NFTs) on Ethereum, used by many popular NFTs. ERC-777: An improved fungible token standard over ERC-20, providing enhanced privacy and addressing certain issues with ERC-20 tokens. ERC-1155: This standard helps reduce costs by allowing transactions to be grouped, and can be used for both fungible tokens like the Basic Attention Token and non-fungible tokens like CryptoPunks. Wrapped Tokens Tokens on different blockchains typically cannot interact with each other. Wrapped tokens address this issue by representing assets on one blockchain in a form that can be used on another. For example, Wrapped Bitcoin (WBTC) on the Ethereum blockchain is an ERC-20 token backed 1:1 by real Bitcoin. This allows WBTC holders to use Bitcoin within the Ethereum network for trading, farming, staking, and interacting with other ERC-20 tokens. Token standards enable the use of diverse assets within the same blockchain, solving the problem of asset incompatibility and providing flexibility for the network. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
Education
by Crypto4light
2
5 RULES DISCIPLINED TRADERS FOLLOW 👨‍🎓Hey guys! In this article you will learn about 5 RULES DISCIPLINED TRADERS FOLLOW, let's dive in it! But before you do so, make sure you follow my page and turn TradingView notifications ON! Let's go! 1️⃣ Follow Financial Plan, Do Not Go All In A trading plan is a written set of rules that specifies a trader's entry, exit, and money management criteria for every buy or sell entry. Do not go all in! Want to lose most or all of your money real fast? Make outsized trading bets, like a roulette player betting it all on red or black. In fact, big trading bets are a form of gambling. So avoid gambling, stop going “all in” in single stock or coin. Start planning your investments, invest in the long-term at least 10% of your income every month in markets and other assets. If you invest a certain amount every month, you are buying shares in good times as well as bad times. In good times, the value of your shares increase. If you keep your cool and stick with the plan even when the market is down, you get more shares for your money. These additional shares boost investment returns when the market rebounds. This is a big part of the reason why regular stock investors get a higher long-term return compared to safer investments despite the temporary ups and downs in the market. A long-term investor has a minimum of a 20-year time horizon; this time frame enables them to avoid playing it safe and to instead take measured risks, which can ultimately pay off in the long run. 2️⃣ Treat Trading Like A Business To be successful, you must approach trading as a full- or part-time business, not as a hobby or a job. If it's approached as a hobby, there is no real commitment to learning. If it's a job, it can be frustrating because there is no regular paycheck. Trading is a business and incurs expenses, losses, taxes, uncertainty, stress, and risk. As a trader, you are essentially a small business owner and you must research and strategize to maximize your business's potential. Think in Long term – Don’t trade like you are going to retire tomorrow Have a Clean Trading Office That inspire you Have a trading Plan for Your Trading Business Don’t Present Yourself all Over the Market – Have a Proper EDGE over the Market Have a Strict Daily Trading Routine & Follow it Continuously Always Protect Your Trading Capital Have Solid Trading Journal 3️⃣ Don't Trade Everyday You don't have to open trades every day Beginners tend to think that professional traders open their trades every day. But this is not true. Professional traders wait for good trading opportunities and only then enter the market. Some days there will be no good trading opportunities. Sometimes the volatility will be too low, and you simply will not be able to take more or less decent profits. Sometimes, on the contrary, the volatility will be too high, and you will not be able to open your trades safely. There can be many different reasons in the market when it is best to refrain from trading. Experienced traders know when to sit back and just wait. At the same time, most novice traders constantly open new positions because they think they should trade. But in the end, they make bad trades and constantly suffer losses. If you don't find valid good entry points, but still open new trades, you will lose much more money than if you had the patience and stayed out of the market. 4️⃣ Accept Losses, Losses = Learning It is much more useful to accept the fact that losses are the norm rather than the exception. It is also vital to define your potential losses before you enter any trade. Define your possible loss, or risk, in comparison to your possible reward, or profit. It is also vital that you don't take losing personally. 5️⃣ Risk Only What You Can Afford to Lose Let the profits flow and cut the losses. This idea is one of the most common among traders. As George Soros said: It doesn't matter if you're right or wrong. What matters is how much you earn when you are right and how much you lose when you are wrong. The key to trading success is to grow your profitable trades. Traders who are afraid of losing their money often stop paying attention to the market situation and become too attached to the current profit. They make their decisions about open positions based only on the fear that the price will not reach their profit. We know that unfixed profits still belong to the market. But once you start cutting back on your winning trades, you also cut your risk to reward ratio. Of course, sometimes the market will give you less profit than you bargained for. And that's okay. To trade successfully, you must free the market and stop restricting it. But if you are trading with money that you fear losing, you will not have that luxury. Instead, you will be afraid of losing your accumulated profits and you will not be able to sit back and let the market do its job. The beauty of using multiple risk-reward ratios is that you can ignore your winning ratio and still make good money. If you reduce this ratio, you are faced with the need to make a high percentage of profitable trades in order to make a profit. Basically, you yourself are reducing your chances of achieving success. Stay tuned for further updates! Always learn, never give up! Best regards Artem Shevelev
BITFINEX:BTCUSDEducation
by ArShevelev
9
The Significance of Trading Volume: Understanding Its ImportanceHey there, fellow traders! Today, let's dive into the fascinating world of cryptocurrency trading volume. Think of it as our market's fluctuations – a constant flow of transactions across various exchanges. The trend is your friend and the volume is your vision of trading. What's Cryptocurrency Trading Volume? Imagine this: as you sip your morning coffee, traders around the globe are already immersed in the action, making buy and sell trades that impact the trading volume. And just take a look! Now, you might be wondering, what’s going on? Well, trading volume ain't just a bunch of fancy digits. It's a sneak peek into how traders are feeling, their trades about where their prices are heading. When volume shoots up like a rocket, it usually rides alongside big price fluctuations, impacting potential trends in the market. How Does Trading Volume Affect Crypto Trading: Why Is Trading Volume Important? There are always two scenarios when we talk about a cryptocurrency: up and down. Imagine it is like this: the price is like a mirror that reflects what folks who want to buy and sell think is fair. When the number of people looking to buy is nearly the same as those wanting to sell, the price is still in the flat. This tells us that everyone has a good sense of what the price should be, creating a well-organized market. The number of people buying and selling is roughly the same. It's like having a balanced situation. But I should be honest: stability is not always the norm in the wild world of crypto. This market is moving, thanks to stuff happening outside and decisions made by all sorts of investors, from big shots to regular folks hoping to score quick gains. How much trading a specific cryptocurrency sees can change based on how exciting people find the project, when it gets added to major trading platforms, and how much buyers are willing to pay compared to sellers. So, checking out how active a cryptocurrency is in trading can give us a clue about how confident people are in its potential, which in turn can hint at how much the price might shift. Websites like Coinmarketcap check how much trading a cryptocurrency does over time and how easy it is to turn it into actual money. If trading with crypto was simple, its price didn't pump or dump hard when people buy or sell. But for less-known cryptocurrencies on smaller trading platforms, not much trading can cause the price to move fast with just a few trades. But here's the thing: that lack of trading can also mean a chance to grab it at a low price on one platform and sell it for more on another. This situation is called arbitrage. Here are a few strategies which you can use. 1) Classic arbitrage is the arbitrage between exchanges 2) Funding arbitrage is the arbitrage between exchanges that trade with futures and rais from traders a funding. 3) Futures arbitrage Futures arbitrage is called convergence arbitrage. The mechanic is that you go long on one exchange and short a futures contract on another. Let's say you believe Bitcoin's price will hit 60k dollars. On one exchange, there's a contract lagging by 5k dollars, but on the other price was without difference. When the price converges, you'll close it at 60k dollars, minus trading fees and funding costs, pocketing the profit difference. That’s how it works, traders. The new article will be about trading volume and how to use it in your trading strategy. Your subscriptions are always appreciated. Thank you!
Education
by Ingwina
Practical advice for a novice traderPractical advice for a novice trader - It doesn't matter what size of the deposit you have, start gaining experience with symbolic sums: $10/50/100, as you gain skills, you can increase the deposit, but be prepared to lose. In addition, with such an initial deposit, the logic of the behavior of market participants will open up to you. - Do not invest in trading those funds, the loss of which will affect the quality of your life, only what you are ready to lose. - Do not rush to leave your main job, let trading be your hobby for some time, perhaps it will grow into something more over time (but this is not certain). - More trades does not mean more profit, you can make several trades in a month and earn more than if you made dozens of trades a day, and sometimes it’s best to be out of the market, but this is very difficult without experience. 90% of a trader's time is spent on analyzing the instrument and the situation, forget about the rush, opportunities appear and disappear every day, know how to wait. - The first transactions can be made on paper, on an unfamiliar chart, but just take into account not only the profit or loss, but also the time spent. - It doesn’t matter what timeframes you work on, as long as you manage to trade profitably, but you need to start studying the chart with higher timeframes: monthly, weekly, daily and go lower, so you will understand the whole picture. - There is no endless growth, as well as an endless fall, markets are cyclical, and reversals usually occur at the most unexpected moments. Do not make decisions on emotions, only a well-thought-out plan. Develop your own trading strategy, according to your initial data and temperament. - Don't ask others where to buy and where to sell, they don't know. - If the instrument has already made several hundred percent growth from the bottom, then it is not rational to enter it without stops, if the profit from the bottom is several thousand percent, then it is contraindicated to enter such an instrument on growth without waiting for a significant rollback! - Even if everything points to a specific direction of movement, always allow 1% for the opposite option, this can save you from significant losses. Always control risks. - If you make a profit, withdraw at least a part, regularly, you must understand why you are spending your time on this. Ideally, over time, withdraw all the money invested, so it will be easier for you to psychologically operate with a deposit. There are no universal strategies. Your trading strategy should be well-considered, but at the same time adaptable to the current market situation. Something works well in a rising market, and does not work well in a falling one, and vice versa. You will be able to earn if you quickly adapt to the situation and skillfully manage risks. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
2
Domino principe in crypto marketBINANCE:BTCUSDT Let's start with what the S&P500 is. The S&P 500 is a stock market index made up of 500 large companies whose total shares are traded on the New York Stock Exchange (NYSE) or NASDAQ. The NASDAQ index - trades over 3,000 stocks. This exchange specialises in stocks of high-tech companies I will not torture you with charts, but I will tell you why the classical stock market indices affect the cryptocurrency. Correlation of the cryptocurrency and stock market. The S&P 500 and NASDAQ indices include stocks of technology companies, incl. crypto companies. For example, Coinbase Global , Riot Blockchain , etc. In other words, their indicator reflects the state of the entire sector of the economy. Cryptocurrencies are highly correlated with US technology stocks, as they belong to the same class - risky instruments. They are bought, counting on a strong price increase, and sold at the slightest signal of impending problems. And inflation and geopolitical uncertainty motivate to seek protection in safe-haven assets. In April, the US reported inflation of 8.3% (money is depreciating, prices for goods and services are rising), the main reason is that they have printed too much money, the national currency has to be strengthened. All this immediately affected the stock and crypto markets. Bitcoin was the first to react. Based on this, we can build a chain of influence: world events / inflation > stock market > bitcoin > altcoin > panic around stables. Panic is subject to the Domino principle. One event affects another, causing a chain reaction, and everything gradually tends to destruction. We will try to illustrate this principle. Following the record crash of the $LUNA Terra token and its $UST stablecoin, increased volatility has been seen across all stablecoins. Someone, as usual, knew everything in advance. Back in April, there were many articles about how Terra has a weak algorithm and can easily play the death spiral scenario. The bottom line: “If the price of $LUNA comes under pressure, $UST holders may fear that the $UST peg is under threat and decide to buy out their UST positions. To do this, $UST is burned, and $LUNA is minted and sold on the market. This will further exacerbate the fall in the price of $LUNA, pushing more $UST holders to sell their $UST.” There are many theories about the group of people behind this pressure. It boils down mainly to the fact that pressure is exerted in order to regulate the crypt. This is not so important. The trouble is that the system failed, and if this is possible within the framework of the "game rules", but it does not matter by what method this was achieved, it would have happened sooner or later. Investigation to be! The US Securities and Exchange Commission (SEC) is investigating the decoupling of UST from the dollar. And in the United States, they pass a law on the regulation of stablecoins by the end of 2022. The situation with LUNA put the strongest pressure on the market, $UST was shaking for several days until it completely died, the situation escalated, panic attacks seized all sectors of the market, the domino principle was launched. USDT ≠ UST ? What does stable mean? $USDT is backed by fiat dollar reserves and assets. Those. For every $USDT, there is a real $1 US. This distinguishes $USDT from algorithmic $UST. Part of the securities backed by $USDT is related to the Chinese real estate sector, which is in crisis. If these securities depreciate, then the peg may lose the rate 1:1. And this fear has been around for a long time, so Tether is reducing the share of commercial paper, increasing the share of the real dollar. In February 2021, Tether agreed to provide reports as part of the settlement of allegations of covering up the loss of funds and lying about the state of the reserves. As of March 31, Tether had assets of at least $82.4 billion, as well as $82.2 billion of liabilities related to the digital tokens it issued. But this does not change the reasons for the shorts, because the specific sources of commercial paper have not been disclosed. Do not forget that during a general panic, fear provokes fear, each event causes two more, all this grows exponentially, and someone is sure to profit from it, this is the golden law. After analyzing the current situation, I can note a lot: Stablecoins, not so stable. If not backed by real $, and even here you can bet. You can’t panic, otherwise volatility is inevitable, and sometimes you can even make money on it. Be vigilant, remembering that panic takes over everyone. At such times, risk is everywhere, analyze what you are doing and be careful. A crisis is a difficult time, on the other hand, it is a time of opportunity. Study what you invest in, these are market conditions. The cryptocurrency market is directly related to the stock market. First of all, the stock market affects Bitcoin . Is it really that bad? Cryptocurrency has already experienced difficult times. The market cannot go up all the time, the current situation is quite natural. But it was at such times that the most significant projects of the sphere were born and developed on the market. Collective panic cant strongly shake the market, any token and even shake $USDT. Don't despair, we are in the right place. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. * For more ideas please hit "Like" and "Follow"!
by Crypto4light
BTC - How sharks lure fish🐟Now, through the efforts of a market maker, something similar to the Head and Shoulders can be traced on the chart. This is drawn in order to lure inexperienced traders who will be trapped into shorts. However, experienced traders know that a H&S is a reverse setup! Knowing how to spot traps of the market maker is just as important as knowing how to find your formations. This skill will help you better predict future market movements and trade in the direction of wind. What do you think of this idea? What is your opinion? Share it in the comments📄🖌 If you like the idea, please give it a like. This is the best "Thank you!" for the author 😊 P.S. Always do your own analysis before a trade. Put a stop loss. Fix profit in parts. Withdraw profits in fiat and reward yourself and your loved ones
Education
by Artem_Dishel
4
2. What are Exchanges? 🤔😛 <<<Crypto Education>>>In the world of cryptocurrencies there are two types of exchange. CEX and DEX. The graph shows the difference for each one. What you should know about CEX: Used to change fiat to crypto and crypto to fiat. CEXs can block your money without warning for any reason. The CEX may ask to verify your identity and origin of funds. Some cannot serve clients depending on their location. What you should know about DEX: DEXs are smart contracts that exchanges run. To use a DEX you need to already have cryptocurrencies in possession since they do not have fiat money input. Most DEXs trade only with assets from the same chain where they are located. Ex Uniswap is used to exchange ERC-20 Ethereum tokens. DEX can be used from your software or hardware wallet.
INDEX:BTCUSDEducation
by Ed_Ale
1
OSTBTC - How to find the breakout in a sideways marketHey everyone! One of the biggest ways to increase your risk exposure is to enter a market just a bit too early and catch that last (much needed) sweep of weak hands before finally moving up! Consolidation breaks provide great Risk-Reward-Ratio, with an impulsive break sometimes declining a second chance with a retest of what was previous resistance now turned into support and we are left with our hands empty. Well, that's not a great deal.. What we should look at is the general price action: generally, we want to look at symmetrical and ascending triangles before these long consolidation periods are broken. Then look at them more carefully: when is the main volume coming from? Are the buy legs steeper and more impulsive than the sell legs? Let's take a look at the beautiful chart above: look at those huge green candles - that's buyer interest right there. You will not see these type of volume candles in a market where sellers are in control. Also note that the top part of the symmetrical triangle is being tested and a close on a high timeframe could mean that we are ready to move further up. Hope you are able to spot this structure next time you look at a chart! Take care, Vlad The Crypto Trader
OEducation
by Be_Independent_Tribe
Bitcoin - Fishing for fools, don't be one!The problem is that BTC does not want to face reality, it is time to buckle under the weight of the death cross. It keeps pretending like it has the strength to defeat it by moving up once in a while but the truth is that to defeat a death cross it requires an astronomical amount of volume. Yes, exchanges can start pumping BTC anytime but we will only drop money in if the price hits the bottom of the current channel or one of the two X's in the triangle you see below. The X at the end of the orange line is the same as the bottom of the channel on the 1 day chart. DONT FORGET TO FOLLOW ME AND TO HIT THE LIKE BUTTON. The fact is that we are still trending down in what is called "Minor trends" which can be seen in smaller timeframes such as the 6H. And also trending down on what would be called the "Secondary Trend" such as the one on the main chart which you can see below again on the 1D. So what is happening on the primary trend? On that one, we are going up as you can see below -- which is best if you see it from a higher timeframe such as the 1Week or 1Month. To make the above charts more understandable you have to know that there are 3 types of trends: A primary, a secondary and a minor trend. We are in a bull market as long as the Primary is on an uptrend and yes we are going up for now. Where we make our money is on the parabolic moves during the secondary trends. I put all my money in once we hit the 200MA on the weekly which was around $3600 on Feb 18th and pulled out at $12,000 on the 2nd of July. I was able to make my money for the year at that point, it takes discipline and patience but you can get there too. Why did I say that BTC is fishing for fools? Because it keeps printing bull flags and other bull patterns to entice new traders in and if you fall for these patterns, as soon as you put your money in it crashes down eventually you will lose your entire working capital one small chunk at a time if you trade in this manner. Keep reading my posts, you'll understand what you did wrong and then you'll understand what you can do to correct it. THE TREND: Going Down, we have not made a new higher high THE OUTLOOK: Expected to go down, surprising if it goes up.
by cryptoGats
23