Knowledgebase

• What is a Yield Curve?

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  A yield curve is a visual representation of interest rates (or yields) on bonds with different maturity dates. Imagine it as a line that compares short-term interest rates to long-term ones, usually focusing on US Treasury bonds.

• What is a Yield Curve?

  A yield curve is a visual representation of interest rates (or “yields”) on bonds with different maturity dates. Imagine it as a line that compares short-term interest rates to long-term ones, usually focusing on US Treasury bonds.

  The yield on a bond varies based on its maturity date because investors seek different rates of return depending on the bond’s duration. This difference often reflects inflation expectations, credit risks, and broader economic conditions.

  The shape of the yield curve reveals a lot about market expectations for the economy, offering insights into potential growth, inflation, or recession ahead. The US Treasury Yield Curve is the best-known example, often seen as an economic barometer that guides decision-making across global markets.

• How Traders Use Order Books to Understand Market Dynamics

  Order books are valuable tools for gaining insights into market sentiment, liquidity, and potential price action. Here are some of the main ways traders leverage order books:

  1. Identifying Support and Resistance
  Order books help traders spot key support and resistance levels. For instance, large buy orders clustered around a specific price level, known as a “buy wall,” can suggest strong support. Conversely, a “sell wall” with a large number of sell orders signals potential resistance at a given price.

  2. Assessing Market Liquidity
  The depth of an order book, or the number of buy and sell orders across price levels, gives an idea of market liquidity. In a liquid market, where there are numerous orders, traders can execute large trades without causing significant price fluctuations. Shallow order books, on the other hand, mean a limited number of orders and can lead to price slippage on larger trades.

  3. Evaluating Market Depth and Price Pressure
  Traders examine how many orders are placed at various price levels, often referred to as “market depth.” When buy orders are stacked up at certain prices, these levels are more likely to act as support. Similarly, clusters of sell orders at certain prices often create resistance, as those levels may see increased selling pressure if the price approaches them.

  4. Spotting Manipulation Tactics
  It’s important to note that order books can sometimes reflect misleading signals. Some traders or entities may place large buy or sell walls to give a false impression of supply and demand, a tactic known as “spoofing.” This can create artificial support or resistance, which then disappears when these orders are removed.

  Order books can offer a glimpse into real-time market sentiment, but traders should use them alongside other technical and fundamental analyses for more reliable decision-making. They provide useful information, yet they’re not foolproof and are best used as part of a broader trading strategy.

• What Is the Ethereum Pectra Upgrade?

  The Ethereum Pectra is an upgrade (hard fork) that aims to make Ethereum faster, more scalable, and easier to use, both for everyday users and blockchain developers. Expected to roll out in two phases starting in 2025, Ethereum Pectra is set to be one of the most significant improvements to the Ethereum network in recent years.

  Pectra is actually two upgrades that were initially planned to happen separately: Prague and Electra. They were combined into one to make things smoother.

  Why Is Ethereum Upgrading?

  Ethereum has been steadily improving since its creation, with many important upgrades like “The Merge” in 2022 (which switched Ethereum to Proof of Stake) and the “Cancun” upgrade in 2024.

  However, Ethereum still faces challenges, especially around transaction fees, scalability, and how complex it can be for new users. The Pectra upgrade is designed to address these problems.

  Major Features of the Pectra Upgrade

  Let’s look at some of the biggest changes coming with the Pectra upgrade:

  1. Account abstraction

  Right now, Ethereum users need to have small amounts of ether (ETH) in their wallets to pay for gas fees. These fees are transaction costs that you need to pay whenever you make a transfer or interact with a decentralized app (DApp). For example, if you’re sending tokens to someone or trading NFTs, you have to use ETH to cover these costs.

  With the Pectra upgrade, Ethereum will leverage a concept called account abstraction to enhance user experience. One of the benefits of account abstraction is that you won’t have to keep ETH just to pay for gas fees. Instead, you can pay with other tokens, like USDC or DAI, making it more convenient. The update will also allow third-party services to sponsor your gas fees, meaning you could pay little to no fees in some cases.

  2. Smart contract efficiency

  Through Ethereum Improvement Proposals (EIPs) like EIP-7692, the Ethereum Virtual Machine (EVM) will become more efficient, speeding up smart contract execution. This change benefits both developers and users by lowering the cost and complexity of deploying smart contracts.

  3. Improvements for validators

  You might have heard that Ethereum runs on a decentralized system where “validators” help confirm transactions and keep the network secure. Validators need to stake (lock up) 32 ETH to participate, and they earn rewards in return. But any amount of ETH over 32 just sits there and doesn’t earn any extra rewards. That’s not very efficient.

  Pectra will introduce flexible staking withdrawals (EIP-7002) and increase the stake limit of validators from 32 to 2048 ETH (EIP-7251). This change will make the system more flexible and efficient, especially for people or companies who manage large amounts of ETH.

  Additionally, Pectra will allow for “validator consolidation,” which means that large operations like Lido, which stake ETH for lots of users, will need to run fewer validator nodes. This can reduce the strain on the Ethereum network, making it faster and less resource-intensive.

• Understanding Market Makers and Market Takers

  In trading, particularly on cryptocurrency exchanges, you often hear about Market Makers and Market Takers. But what exactly are they? Let’s break it down!

  Market Makers: Exchanges typically use an order book to determine the market value of an asset. The order book collects all buy and sell offers from users. For example, if you submit an instruction like “Buy 800 BTC at $4,000,” this order will sit in the order book until the price hits $4,000.

  When you place an order that adds liquidity to the market (like the example above), you’re a Market Maker. Why? Because you’ve “made” the market by adding an order to the book, waiting for someone to come along and fill it. Think of it like a grocery store—you’re the supplier putting goods (your BTC) on the shelves for others to purchase.

  Market makers are often large traders or institutions (like those involved in high-frequency trading), but even small traders can be market makers by placing orders that aren’t immediately executed.

  Tip: Using a limit order doesn’t always mean you’ll be a market maker. To ensure your order gets added to the book before being filled, select “Post Only” (available on desktop and web versions).

  Market Takers: On the other side, we have Market Takers—those who take liquidity from the order book. Instead of adding an order to the book, a taker submits a market order (an instruction to buy or sell at the current market price), which fills an existing order immediately.

  Using our store analogy: as a maker, you place your goods on the shelves, and as a taker, you’re the shopper taking items off the shelf. When you execute a market order, you’re removing liquidity from the exchange.

  Reminder: You can be a market taker even if you use a limit order. The key point is that you’re a taker whenever you fill someone else’s order.

  Summary: Makers add orders to the book, increasing liquidity. Takers fill those orders, reducing liquidity.

  Whether you’re a maker or taker depends on the type of order you place and how it interacts with the market. Understanding this distinction helps traders strategise better and manage fees, as exchanges often charge lower fees for makers to encourage liquidity!

• What is Fungibility?

  An asset is considered fungible when its units are interchangeable with one another, meaning they are indistinguishable. In other words, an asset class is fungible when each unit of the asset has the same validity and market value. For example, a pound of pure gold is equal to any other pound of pure gold, regardless of the shape. Other examples of fungible asset classes may include commodities, fiat currencies, bonds, precious metals, and cryptocurrencies.

  However, an equal exchange of a fungible asset does not necessarily mean exchanging of two identical units. As long as the transaction happens between instruments of the same kind and that share the same functionality, it can be considered as an equal exchange. For instance, a five-dollar bill can be exchanged with five one-dollar bills, but they have the same validity. In this example, the US dollar is the fungible asset, while the bills merely represent their underlying value.

  In general, most cryptocurrencies are considered fungible assets. For example, we may consider Bitcoin fungible because each unit of BTC is equivalent to any other unit, meaning they have the same quality and functionality. So it doesn’t really matter in which block the coins were issued (mined), all Bitcoin units are part of the same blockchain and have the same functionality. Note that if someone forks the blockchain and create a new Bitcoin, those coins won’t be considered original as they would be part of another network.

  It has been pointed out that due to the inherent traceability of BTC and similar cryptocurrencies, some coins might be less desirable than others – especially if they have been previously used in dubious or illicit activities. This means that some merchants or service provides may deny receiving Bitcoins as payments if they believe those particular coins were used by criminals in the past.

  Unlike some tend to believe, however, this fact doesn’t remove Bitcoin’s property of fungibility. Traceability and fungibility are two different things and, despite their transactional history, each Bitcoin is still the same in terms of quality, technology, and functionality. Similarly, the US dollar is still a fungible asset, although criminals have been using it for illicit activities for many decades.

• What Is Binance Megadrop?

  Binance Megadrop is a token launch platform that combines elements of Binance Simple Earn and the Binance Web3 Wallet to create an innovative airdrop experience. The platform is designed to provide users with early access to new token projects and a variety of ways to earn rewards. With Binance Megadrop, users can subscribe to fixed-term products, complete Web3 quests, and receive token rewards proportional to their accumulated scores.

  Key Features of Binance Megadrop

  1. Early access to token projects

  One of the main features of Binance Megadrop is giving users early access to selected Web3 projects before their official listing on the Binance exchange. This allows users to get involved in promising projects at an early stage, potentially benefiting from future growth and development.

  2. Integration with Binance Simple Earn

  Binance Megadrop is closely integrated with Binance Simple Earn, a feature that allows users to earn rewards by locking their BNB in fixed-term products. By subscribing to these locked products, users accumulate points that determine their reward allocation in the Megadrop program. The longer the lock period and the more BNB locked, the higher the score and potential rewards.

  3. Engagement through Web3 quests

  Another significant aspect of Binance Megadrop is the inclusion of Web3 quests. These quests are designed to engage users and encourage them to learn more about the blockchain ecosystem. By completing tasks within their Binance Web3 Wallet, users can boost their scores and earn additional rewards.

• I Approach Each Trade with Confidence

  I trust my skills and analysis, and I approach every trading decision with confidence and clarity.

• BagHolder

  In the crypto space, the word bag refers to the coins and tokens one is holding as part of their portfolio. Typically, the term is used to describe a significant amount of a particular cryptocurrency. There is no defined minimum, but when the value is relatively high, one could say they are holding “heavy bags” of a certain coin or token.

  Investors that hold bags for long periods are often called “bagholders.” Although the term may apply to different situations, it is usually related to investors that insist on holding their bags despite the poor market performance. In other words, bagholders are HODLers that stick to their assets even if their bags experience a significant decline in value (during strong bear markets).

  There are various theories that try to explain the reasons why an investor become a bagholder. On the one hand, some investors simply don’t follow what is going on in the market. Either because they have a strong belief that their bags will be valuable in the future, or because they just lack the time or interest to track the performance of their coins.

  There is also a phenomenon called the disposition effect, which is likely related to the bagholders mindset. It describes the tendency of investors to stubbornly hold their bad performing bags (hoping for a recovery), while quickly selling bags that increase in value. The disposition effect relates to the fact that humans, in general, dislike losing more than they enjoy winning – even if the final result is the same.

• What Are ZKThreads?

  ZKThreads are a zero-knowledge framework that enhances the performance and scalability of DApps. They utilise Starknet’s capabilities to create a standardized environment for developing and running interoperable applications on the blockchain.

• What Are Index Funds?

  An index fund is a type of investment fund designed to replicate the performance of a specific index of financial markets, such as the S&P 500 or the FTSE 100. These indexes represent a collection of stocks or bonds, and the index fund aims to mirror their performance by holding a similar portfolio of securities.

  Index funds typically work by holding a portfolio of securities that closely matches the composition and weightings of the index they aim to track. For example, an S&P 500 index fund will invest in the 500 companies included in the S&P 500 index, with each holding proportionate to its market capitalisation within the index. This approach ensures that the fund’s performance closely aligns with the index.

  *Benefits of Index Funds*
  1. Diversification: Index funds can provide diversification by investing in a range of securities within a single fund. This diversification spreads risk across different sectors and companies, reducing the impact of any single stock’s performance on the portfolio.

  2. Lower costs: Index funds often have lower expense ratios compared to actively managed funds. Since index funds do not require frequent buying and selling of securities by fund managers, the operational costs are minimised, resulting in lower fees for investors.

  3. Consistent performance: The goal of an index fund is to match the performance of its underlying index, not to outperform it. While this means the fund won’t beat the market, it also ensures that it won’t significantly underperform. Over time, this can provide investors with consistent and reliable returns.

  4. Ease of investing: Index funds are straightforward to buy and sell, making them suitable for both novice and experienced investors. They can be bought through brokerage accounts, retirement accounts, and various other investment platforms.

• What Is Cold Storage?

  Cold storage is when you keep your digital assets offline to make sure they are safe from hackers. In fact, what you keep offline are the private keys, not the assets. Private keys are cryptographic keys that grant access to your cryptocurrency holdings. Unlike hot wallets, which are connected to the internet and susceptible to online vulnerabilities, cold storage methods keep your private keys offline at all times. There are different ways to isolate your private keys from online exposure, including hardware wallets, paper wallets, and air-gapped systems. Hardware wallets are physical devices designed to securely store private keys. These devices often resemble USB drives and offer an additional layer of protection through encryption and PIN authentication. By generating and storing keys offline, hardware wallets ensure that access to funds remains restricted from online threats. Paper wallets involve printing or writing down private keys on paper. These physical copies can be stored in a secure location, such as a safe or vault. Paper wallets are considered cold storage since the keys are entirely offline, reducing the risk of cyber attacks. Paper wallets were popular in the early days of Bitcoin but are now discouraged due to risks. Paper is fragile and can be easily damaged. There are also concerns related to using a potentially infected computer or printer. Another risk is the misconception that funds can be sent multiple times from the same address. When sending funds from a paper wallet, you must send the entire balance to avoid losses.

• What Is Chain Abstraction?

  Chain abstraction is NEAR’s idea of simplifying how users interact with blockchain technology by separating it from the user experience (UX). The goal is that users should not be aware of the specific blockchain they are interacting with or even realise that they are using a blockchain.

• What is a Matching Engine?

  Have you ever wondered about the magic that occurs behind the screens when you trade stocks or cryptocurrencies? How does an online trading platform or exchange perfectly pair the countless buy and sell orders from traders all around the world? The answer lies in a powerful tool called the matching engine.
  At its core, a matching engine is a sophisticated piece of software designed to pair buyers and sellers in financial markets. To unpack how it works, let’s start with a trading exchange.

  Traders interact with the exchange to place their buy or sell orders. Each order includes specific details, such as the type of asset (like a stock, commodity, or cryptocurrency), the volume, and the price at which they wish to buy or sell.
  Once the order is placed, it’s the matching engine that processes and matches them. Think of it as an extremely diligent middleman, processing hundreds of orders in a fraction of a second. It goes over these orders and pairs off buyers and sellers according to their stipulated criteria.

  Primarily, the matching process works by following two key rules: price and time. The matching engine will first match orders with the same price. If there are multiple orders with the same price, it prioritises them based on the time they were placed. This is commonly referred to as “price-time priority” in the trading world.

• What Is Liquid Staking and How Does It Work?

  In short, liquid staking is the tokenisation of staked assets. We can think of it as an evolved version of traditional staking.

  Conventional staking involves locking assets on a Proof of Stake (PoS) blockchain for a chance to receive rewards while contributing to the network’s security. However, this process often comes with a trade-off, as staked assets are typically illiquid (locked) during the staking period.

  Liquid staking addresses this liquidity issue by introducing a mechanism where users receive liquid staking tokens (LSTs) in exchange for their staked assets. For example, if you stake ETH on a platform like Lido, you will receive stETH tokens in return. This gives staked tokens more utility, as users can benefit from staking rewards without compromising liquidity.

  Liquid staking addresses the liquidity issue associated with traditional staking, providing users with greater flexibility and accessibility to their staked assets.
  Platforms like Lido can offer users the opportunity to tokenise their staked assets into LSTs that can then be freely traded, used in decentralized finance (DeFi) applications, or leveraged as collateral without waiting for the staking period to conclude.

  In addition, liquid staking contributes to the overall growth and adoption of blockchain networks by encouraging more active participation from users who may have been hesitant to lock up their assets for extended periods.

• What are Real-World Assets (RWA) in DeFi?

  Real-world assets transformed into digital tokens and stored on a blockchain or other distributed ledger technology are tokenized real-world assets. These include real estate, art, commodities and even intellectual property. Greater liquidity, transparency and accessibility are made possible by this digitisation of physical assets, and it is frequently thought of as a way to modernise and democratise conventional financial markets.

  Enhanced liquidity is one of the most important benefits of tokenising real-world assets. Unlike traditional markets with set trading hours, cryptocurrency exchanges allow for 24/7 trading of these tokens, giving traders more freedom. Moreover, investor confidence is increased by the transparency built into blockchain technology, which further lowers the possibility of fraud and ownership conflicts.

  Additionally, tokenisation lowers the costs associated with asset management, such as paperwork, intermediaries and legal fees, by removing many of the entry barriers prevalent in traditional financial markets. Investor fees may be reduced as a result of this cost reduction.

  However, tokenised real-world assets do have drawbacks, including regulatory considerations that differ by jurisdiction. Any tokenisation project must adhere to local laws and regulations. Due to the vulnerability of digital assets to fraud and hacking, security is another crucial issue. To preserve these assets, effective custody solutions and security measures are required.

  Despite these difficulties, tokenised real-world assets are a promising financial industry innovation that provides more inclusive investing options. Tokenisation adoption is still in its early stages, and it might take some time to become widely accepted in traditional finance. Nonetheless, technology can change how we deal with and invest in physical assets.

• Stop-Limit Order vs. Limit Order

  A limit order is an order to buy or sell a specific amount of cryptocurrency at a specified price. When you place a limit order, you are essentially specifying the maximum price you’re willing to pay to buy a cryptocurrency or the minimum price for which you’re willing to sell it.

  Typically, traders place sell limit orders above the current market price and buy limit orders below the current market price. If you place a limit order at the current market price, it will likely be filled within a few seconds (unless it’s an illiquid market).

  On the other hand, a stop-limit order is an order to buy or sell a cryptocurrency when it reaches a specific price, known as the stop price, and then execute the trade at a limit price you set. The limit price is the minimum amount you’re willing to accept when selling or the maximum amount you’re willing to pay when buying.

  The main difference between the two is that a limit order is used to specify the price at which you want to buy or sell, while a stop-limit order is used to specify the price at which you want to trigger a trade and the price at which you want to execute it.

  A stop-limit order is an advanced trading order that combines elements of a stop order and a limit order. It’s commonly used in cryptocurrency trading to automatically buy or sell a cryptocurrency once it reaches a certain price level.
  The best way to understand a stop-limit order is to break it down into parts. The stop price acts as the trigger for placing a limit order. When the market reaches the stop price, it automatically creates a limit order with a custom price (limit price).

  Therefore to create a stop-limit order, you need to set two different price points: a stop price and a limit price. The order becomes active and triggers the limit order when the stop price is reached. The limit price is the price at which the order will be executed once the stop price is reached.

• What Is Liquidity in Crypto?

  In the crypto market, liquidity refers to how easily a coin or token can be bought or sold without causing significant price movements. Liquidity is a measure of the availability of buyers and sellers and the ability to execute trades quickly and at fair prices. For example, popular cryptocurrency exchanges have higher trading volumes and more participants, making it easier to buy or sell cryptocurrencies and execute trades.
  High-liquidity cryptocurrencies such as bitcoin and ethereum, tend to have a large number of active buyers and sellers. This means there’s a greater chance of finding someone to buy or sell your cryptocurrency without significantly affecting its price. This may not be the case for an altcoin with a smaller market capitalisation.
  Liquidity is influenced by market depth, or order book depth, which refers to the number and size of buy and sell orders in the order book. A deep market implies a substantial number of orders on both the bid (buy) and ask (sell) sides, providing ample liquidity for traders. This allows traders to make larger trades without causing drastic price fluctuations.
  Another important concept is the bid-ask spread, which is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask). In liquid markets, the spread is generally smaller, meaning that the price difference between buying and selling is narrower. This benefits traders by allowing them to execute crypto trades at more favorable prices.
  *What is a liquidity pool?*
  Liquidity pools are a core component of automated market maker (AMM) systems and enable the smooth operation of decentralized exchanges (DEXs). In a liquidity pool, users contribute their assets to create a collective pool of liquidity in exchange for a share of the fees generated from trading activity within the pool. The assets are typically paired and are used to facilitate trading on the platform. Liquidity pools operate by keeping the value derived from multiplying the value of both assets constant.
  You can think of it as a reservoir of funds that allows for decentralized, peer-to-peer trading without the need for a centralized intermediary.

• What Are Bitcoin Stamps?

  Bitcoin Stamps represent a method for integrating digital art within the Bitcoin blockchain. They encode data within unspent transaction outputs (UTXOs), ensuring its immutability by permanently including it in the blockchain.

  A Bitcoin Stamp is created by turning a piece of digital art into a base64 string. The string is added to a Bitcoin transaction, marked with a “STAMP:” prefix. This data is spread out over several outputs using multi-signature transactions. This approach ensures that digital artwork will be permanently recorded on the Bitcoin blockchain.

  Each Bitcoin Stamp gets a special number that’s based on when the transaction happened, making it easier to keep them in order. For a Stamp to be officially recognised, it must meet certain rules, like being part of the first transaction that includes a valid “STAMP:base64” string.

  There are two main protocols used in Bitcoin Stamps: SRC-20 and SRC-721.
  1. SRC-20. The SRC-20 token standard is built on the open Counterparty protocol. It embeds arbitrary data within spendable data transactions – unlike Ordinals, which places data in the witness section.

  2. SRC-721. The SRC-721 standard makes it cheaper to create detailed NFTs. It uses the Bitcoin STAMPS protocol to store pictures in layers, cutting down on file size with methods such as indexed colour palettes for each layer. The layers can be pulled together into a single NFT, allowing for the creation of high-quality images without incurring high costs.

• What are Market Makers and Market Takers?

  *Market Makers*
  Exchanges often calculate the market value of an asset with an order book. This is where it collects all the offers to buy and to sell from its users. You might submit an instruction that looks like the following: Buy 800 BTC at $4,000, for example. This is added to the order book, and it will be filled when the price reaches $4,000.

  Maker (Post Only) Order like the one described requires that you announce your intentions ahead of time by adding them to the order book. You’re a maker because you’ve “made” the market, in a sense. The exchange is like a grocery store that charges a fee to individuals to put goods on the shelves, and you’re the person adding your own inventory.

  It’s common for big traders and institutions (like those specialising in high-frequency trading) to take on the role of market makers. Alternatively, small traders can become makers, simply by placing certain order types that aren’t executed immediately.

  Please note that using a limit order does not guarantee that your order will be a maker order. If you want to make sure the order goes into the order book before it is filled, please select “Post only” when placing your order (currently only available on the web version and desk version).

  *Market Takers*
  If we keep the store analogy going, then surely you’re putting your inventory on the shelves for someone to come and purchase it. That someone is the taker. Instead of taking tins of beans from the store, though, they’re eating into the liquidity you provide.

  Think about it: by placing an offer on the order book, you increase the liquidity of the exchange because you make it easier for users to buy or sell. On the other hand, a taker removes part of that liquidity. with a market order – an instruction to buy or sell at the current market price. When they do this, existing orders on the order book are filled immediately.

  If you’ve ever placed a market order on Binance or another cryptocurrency exchange to trade, say then you’ve acted as a taker. But note that you can also be a taker using limit orders. The thing is: you are a taker whenever you fill someone else’s order.

• Relative Strength Index (RSI) Indicator

  Technical analysis (TA) is, essentially, the practice of examining previous market events as a way to try and predict future trends and price action. From traditional to cryptocurrency markets, most traders rely on specialised tools to perform these analyses, and the RSI is one of them.

  The Relative Strength Index (RSI) is a TA indicator developed in the late 1970s as a tool that traders could use to examine how a stock is performing over a certain period. It is, basically, a momentum oscillator that measures the magnitude of price movements as well as the speed (velocity) of these movements. The RSI can be a very helpful tool depending on the trader profile and their trading setup.

  By default, the RSI measures the changes in an asset’s price over 14 periods (14 days on daily charts, 14 hours on hourly charts, and so on). The formula divides the average gain the price has had over that time by the average loss it has sustained and then plots data on a scale from 0 to 100.

  As mentioned, the RSI is a momentum indicator, which is a type of technical trading tool that measures the rate at which the price (or data) is changing. When momentum increases and the price is rising, it indicates that the stock is being actively bought in the market. If momentum increases to the downside, it is a sign that the selling pressure is increasing.

  The RSI is also an oscillating indicator that makes it easier for traders to spot overbought or oversold market conditions. It evaluates the asset price on a scale of 0 to 100, considering the 14 periods. While an RSI score of 30 or less suggests that the asset is probably close to its bottom (oversold), a measurement above 70 indicates that the asset price is probably near its high (overbought) for that period.

  Although the default settings for RSI is 14 periods, traders may choose to modify it in order to increase sensitivity (fewer periods) or decrease sensitivity (more periods). Therefore, a 7-day RSI is more sensitive to price movements than one that considers 21 days. Moreover, short-term trading setups may adjust the RSI indicator to consider 20 and 80 as oversold and overbought levels (instead of 30 and 70), so it is less likely to provide false signals.

• Confirmation Time in Blockchain Transaction

  Confirmation time is defined as the time elapsed between the moment a blockchain transaction is submitted to the network and the time it is finally recorded into a confirmed block. In other words, it represents the total time a user has to wait until their transaction gets collected and confirmed by a miner node. Depending on the type of blockchain and network architecture, this time can be reduced by offering a higher transaction fee, so miners will have an incentive to give a higher priority to your transaction.

  Confirmation time can be used as a metric to measure the average speed of a blockchain network. However, since the actual time between submission and confirmation can vary due to individual factors and fluctuating demand, it is more reasonable to calculate the efficiency and speed of a blockchain by making use of an averaged confirmation time according to its current state and the most recent blocks.

  After a transaction has been included in a block by a miner, the block needs to be validated by the other nodes of the network. When the block is confirmed to be valid, the transaction is considered to have a single confirmation, meaning that each new block that is mined on top of that will represent another confirmation.

  As the most recent blocks in a blockchain are not considered as fully secure, it is often recommended to wait for additional block confirmations before considering the transaction successful and irreversible. This is especially true for the parties that are receiving cryptocurrency payments, such as merchants and online service providers.

  The actual number of confirmations before a transaction is considered final varies and is directly dependent on the computational power (hash rate) devoted to securing each blockchain network. For instance, Bitcoin users usually consider a minimum of 6 block confirmations to be highly secure, but other chains with less power behind them would require significantly more than that.

• What Are Bitcoin Runes?

  Bitcoin Runes is a protocol that allows for the creation of fungible tokens on the Bitcoin blockchain. Unlike BRC-20 and SRC-20 tokens, which also operate on the Bitcoin network, Runes are designed to be simpler and more efficient without relying on the Ordinals protocol. They leverage well-established Bitcoin blockchain models, such as the UTXO model and the OP_RETURN opcode, to achieve this efficiency.

• What Is Revenge Trading?

  Revenge trading is a psychological pitfall where traders, after experiencing losses, attempt to quickly recoup those losses by making impulsive and emotionally-driven trading decisions. This often leads to a vicious cycle of poor choices, as trades are based on emotions rather than well-thought-out strategies.

  Revenge trading usually begins when a trader suffers a significant loss or a series of setbacks. The desire to “win back” the lost money can cause the trader to abandon their original trading strategy. This might involve increasing the size of their trades or taking on riskier positions in a desperate attempt to recover losses quickly.

  In this state, the trader’s emotions take over, clouding their judgment. They may disregard essential risk management principles and market signals, focusing solely on the need to recoup their losses. For example, after a substantial loss due to an unexpected market drop, a trader might double their next position size, betting on a reversal, despite clear indicators that the market could continue to decline. This behaviour is driven not by logic, but by the emotional need to recover the lost capital.

  The consequences of revenge trading can be severe, both financially and emotionally. Financially, it often leads to further losses, compounding the initial setback. The increased frequency of trades can also result in higher trading costs, further eating into any potential gains.

  Emotionally, revenge trading can be incredibly draining. It can create stress, anxiety, and a sense of failure, making it difficult to stick to a disciplined trading plan in the future. Over time, this can lead to burnout, where the trader becomes disillusioned and may even consider giving up trading altogether.

  Trading requires discipline and a cool head. If you find yourself caught in the cycle of revenge trading or struggling to stick to your strategies, it might be a sign to step back. For those who find this environment too stressful, long-term investing could be a safer and more manageable approach, especially if you’re new to the market.

• Understanding Bollinger Bands (BB)

  Bollinger Bands are a popular technical analysis tool used to measure market volatility and identify potential overbought or oversold conditions. This indicator consists of three main components: the middle band, which is typically a Simple Moving Average (SMA), and two outer bands—the upper and lower bands—that are usually set two standard deviations away from the middle band.

  As market volatility fluctuates, the distance between the upper and lower bands expands or contracts. When volatility increases, the bands widen, and when it decreases, the bands narrow.

  The positioning of the price relative to these bands can provide valuable insights:

  Upper Band: When the price is near the upper band, it suggests that the asset might be nearing overbought conditions, indicating that a potential pullback could be on the horizon.

  Lower Band: When the price is close to the lower band, it may signal that the asset is approaching oversold conditions, which could lead to a bounce or reversal.
  In most cases, the price tends to move within the bounds of the Bollinger Bands.

  However, there are instances when the price breaks above or below the bands, which can indicate extreme market conditions. While such breakouts aren’t necessarily a direct trading signal, they can serve as a warning of heightened volatility and potential market shifts.

  Bollinger Bands are a versatile tool that can be used in conjunction with other indicators to provide a more comprehensive view of market dynamics.

• Moving Average Convergence Divergence (MACD)

  The MACD is a powerful technical indicator comprising two main lines: the MACD line and the signal line, which is a 9-period EMA of the MACD line. The interactions between these lines and the histogram, which represents the difference between them, make this trading strategy effective for analysing shifts in market momentum and potential trend reversals.

  Traders can use divergences between the MACD and price action to spot potential trend reversals. Divergences can be either bullish or bearish. In a bullish divergence, the price forms lower lows while the MACD forms higher lows, signalling a potential reversal to the upside. Conversely, in a bearish divergence, the price forms higher highs while the MACD forms lower highs, indicating a potential reversal to the downside.

  Additionally, traders may utilise MACD crossovers. When the MACD line crosses the signal line from below, it indicates upward momentum, signalling a potential buying opportunity. Conversely, when the MACD line crosses the signal line from above, it suggests downward momentum, indicating a potential selling opportunity.

  By understanding and effectively using these MACD signals, traders can better anticipate market movements and make more informed trading decisions.

• Understanding Crypto Pre-Markets

  Crypto pre-markets are trading platforms that allow investors to trade tokens before they are officially launched or distributed to the general public. Unlike traditional markets, the crypto market operates 24/7, giving ‘pre-market’ a unique meaning in this context.

  Crypto pre-markets function similarly to peer-to-peer (P2P) trading platforms but focus specifically on tokens that have not yet been launched. They provide a window of opportunity for trading tokens between the announcement of their allocation and their official listing on an exchange.

  For example, imagine a new cryptocurrency project announcing its token release through an Initial Exchange Offering (IEO). Before the tokens are officially distributed and listed, the project may open a pre-market phase on a decentralized platform. This allows early investors to trade these unreleased tokens, providing early price discovery and liquidity. This trading activity helps gauge market sentiment and establish preliminary valuations for the project’s token.

  Crypto pre-markets are not just limited to tokens; they can also include trading ‘protocol points’ which might be criteria for future airdrops. Both decentralized and centralized exchanges can offer pre-market trading, with centralized exchanges acting as custodians for these transactions.

  By participating in crypto pre-markets, traders can speculate on the future value of tokens, potentially capitalizing on price movements before the broader market has access.

• What Are Airdrop Scams?

  Airdrop scams are deceptive tactics designed to trick cryptocurrency users by offering fake airdrops, or free distributions of tokens and coins. These scams prey on the allure of free tokens, targeting beginners and unsuspecting individuals to connect their crypto wallets to malicious sites, transfer assets to fraudsters, or reveal sensitive information.

  How Airdrop Scams Work

  Airdrop scams typically involve phishing techniques to lure users into visiting malicious websites. Here are some common methods:

  Fake Airdrop Promotions

  Scammers create phishing websites that mimic legitimate airdrop promotions and advertise them through social media, email, and messaging platforms. Users are promised free tokens in exchange for participating in the airdrop. However, instead of receiving tokens, victims are tricked into revealing personal information, wallet addresses, or even private keys, resulting in their wallets being drained or compromised.

  Impersonation

  Scammers pose as well-known cryptocurrency exchanges or influencers to gain credibility and entice victims into fraudulent airdrops. Sometimes, scammers hack into legitimate accounts to exploit their followers, furthering the reach of their deception. To protect yourself, always verify the legitimacy of airdrop promotions, avoid sharing sensitive information, and use trusted sources for cryptocurrency transactions.

  Stay safe and informed in the crypto space! 🚀🔒

• Understanding Appchains

  Appchains are specialised blockchains designed for a single function. Unlike general-purpose blockchains that support a variety of applications, appchains are tailored for individual applications. This specificity allows them to optimize transaction processing, fees, and smart contract functionalities according to the needs of their particular application. Appchains operate on the fundamental principles of blockchain technology but are customised to meet the demands of specific applications. Each appchain dedicates its resources to a particular task, ensuring efficiency and effectiveness by not diverting resources to unrelated applications. Consensus Mechanisms: Appchains can implement various consensus mechanisms, such as Proof of Work (PoW) or Proof of Stake (PoS), tailored to their specific use case. For example, an appchain for financial services might use a different mechanism than one designed for supply chain management. Smart Contracts: On appchains, smart contracts are specifically designed to meet the unique demands of the application they support. This customization allows for more complex contract logic, enhancing the functionality and efficiency of the application. Appchains thus offer a more focused and efficient approach to blockchain application development, ensuring that resources are used optimally for the intended purpose. Key Benefits of Appchains: Specialization: Each appchain is designed for a specific function, ensuring optimal performance and efficiency. Customizable: Appchains can tailor their consensus mechanisms and smart contracts to the needs of their specific application. Resource Allocation: By dedicating resources to specific tasks, appchains avoid the inefficiencies of general-purpose blockchains. Appchains represent a significant evolution in blockchain technology, offering a more tailored and efficient approach to application-specific blockchain development.

• Understanding Wash Trading

  Wash trading is a deceptive practice where the same financial instruments are bought and sold simultaneously to create the illusion of market activity. This tactic undermines market integrity and fairness. How It Works: An individual or entity acts as both the buyer and the seller in a trade, making it seem like there’s genuine market activity. The objective is not to make a profit from the trade itself but to manipulate perceptions, such as boosting trading volume or influencing price trends. Often, automated trading algorithms or bots are used to execute these trades frequently and efficiently. Consequences: Wash trading can significantly distort market data by generating artificial trading volumes. This makes it challenging for traders and investors to accurately assess market conditions. It can also lead to false signals, causing traders to make misinformed decisions based on what appears to be genuine market interest. Ultimately, this practice can erode trust in the market, impacting its fairness and efficiency. Wash trading is considered unethical and is illegal in many jurisdictions due to its potential to manipulate market perceptions and harm the overall market ecosystem.

• What is Fundamental Analysis?

  Fundamental analysis is a comprehensive method used to evaluate an asset’s intrinsic value. Unlike technical analysis, which focuses on price movements and chart patterns, fundamental analysis delves into the core elements that determine an investment’s true worth.

  Key Focus Areas:

  Intrinsic Value: Fundamental analysts seek to understand an asset’s true value by examining its financial health, industry conditions, and broader economic factors.

  Financial Health: This involves a deep dive into a company’s financial statements, such as income statements, balance sheets, and cash flow statements. Analysts scrutinize these documents to assess profitability, revenue growth, debt levels, and overall financial stability.

  Sector-Specific Trends: Analysts consider the dynamics of the specific sector in which a company operates. For instance, a tech company’s prospects would be evaluated in the context of technological advancements and market demand for tech products.

  Macroeconomic Trends: Broader economic indicators such as GDP growth, inflation rates, and unemployment levels are also factored in, as they can significantly influence a company’s performance.

  Approach to Analysis:

  Long-Term Perspective: Fundamental analysts typically adopt a long-term investment strategy. They are more concerned with an asset’s value over several years rather than short-term price fluctuations.

  Less Focus on Technical Details: Unlike technical analysts, fundamental analysts spend minimal time on daily price movements, candlestick patterns, or the Relative Strength Index (RSI). Their attention is geared towards understanding the comprehensive financial health and potential growth of an asset.

  Practical Application:

  For example, when evaluating a publicly traded company, a fundamental analyst will meticulously read through quarterly financial reports. They might look for trends in earnings, changes in management, product innovations, and competitive advantages. Additionally, they will consider how industry trends and economic conditions could impact the company’s future performance.

  By integrating these diverse elements, fundamental analysis provides a holistic view of an investment’s potential, helping investors make informed decisions based on the underlying value rather than market noise.

  This detailed approach ensures investors can make well-rounded decisions, aiming for sustainable growth and long-term profitability.

• Understanding the Federal Reserve

  The Federal Reserve System, commonly known as the Fed, was established in 1913 by U.S. President Woodrow Wilson to provide stability to the financial system following frequent bank failures. As an independent central banking institution, the Fed operates separately from the U.S. federal government and wields significant control over the nation’s monetary policy.

  Monetary Policy: The Fed can adjust interest rates and alter the reserve requirements for commercial banks to influence the economy’s money supply.

  Economic Stability: Its primary mandate is to promote maximum employment and ensure price stability. This involves monitoring key economic indicators like inflation, consumer confidence, and GDP.

  Bank Regulation: The Fed supervises and regulates U.S. banks to mitigate the risk of bank failures and protect the financial system.

  Data Monitoring: Fed members continuously gather and analyse economic data to maintain a stable economic environment.

  Policy Meetings: The Federal Open Market Committee (FOMC) meets eight times a year to discuss economic conditions and set monetary policies. After these meetings, they hold press conferences to communicate any policy changes to the public.

  Autonomy: Unlike other government bodies, the Fed does not need congressional approval for monetary policy decisions, allowing it to swiftly implement changes.

  The Fed’s role is critical in shaping a stable and thriving U.S. economy, making informed decisions based on extensive data analysis to support sustainable economic growth.

• Understanding BRC-20 Tokens

  The BRC-20 token standard is an experimental fungible token developed using Ordinals and Inscriptions, stored directly on the Bitcoin base chain. Unlike traditional token standards on EVM chains that use smart contracts to manage token rules, BRC-20 tokens operate differently. They deploy token contracts, mint tokens, and transfer tokens through Ordinal inscriptions of JSON data.

  Instead of relying on smart contracts, BRC-20 tokens store a script file in the Bitcoin blockchain. This file attributes tokens to satoshis, allowing them to be transferred between users. Essentially, BRC-20 tokens use Bitcoin’s infrastructure to create and manage fungible tokens.

  As the popularity of BRC-20 tokens grows, so do the transaction costs due to the increased activity on the network. The hype around these tokens has led to congestion on the BTC chain, making transactions slower and more expensive.

  Key Points to Remember:
  Innovative Approach: Uses Ordinals and Inscriptions to manage tokens on the Bitcoin blockchain.
  No Smart Contracts: Unlike EVM chains, BRC-20 tokens do not rely on smart contracts.
  Increased Costs: Rising demand leads to higher transaction costs and network congestion.

  Understanding BRC-20 tokens helps us appreciate the evolving landscape of blockchain technology and the innovative ways developers are utilising existing infrastructures like Bitcoin.

• What is Polygon (MATIC)?

  Polygon addresses some of Ethereum’s most pressing issues, such as high fees, poor user experience, and limited transaction throughput. The platform aims to create “Ethereum’s internet of blockchains,” a multi-chain ecosystem of Ethereum-compatible blockchains.

  By providing a simple framework, Polygon allows developers to create their own Ethereum-compatible blockchains with just a single click. The vision is to enable seamless and fast currency and information exchange between different blockchains, breaking down the technological and ideological barriers that currently exist.

  Originally known as the Matic Network, the project was renamed Polygon as its scope expanded. While Matic was a basic layer-2 scaling solution for Ethereum, Polygon is now the architecture for a network of massively scalable, interoperable blockchains that maintain their self-sovereignty.

• What is Bitcoin Taproot?

  Bitcoin Taproot is a significant upgrade to the Bitcoin protocol, consisting of three Bitcoin Improvement Proposals (BIPs): Schnorr Signatures, Taproot, and Tapscript. These are collectively known as BIP Taproot (BIPs 340, 341, and 342). These upgrades bring more efficient, flexible, and private ways of transferring Bitcoin. Let’s break it down:

  Schnorr Signatures 📜
  Schnorr Signatures, introduced by German mathematician and cryptographer Claus Schnorr, are represented by BIP 340. These signatures efficiently generate simple and short signatures. Though Schnorr had a patent that expired in 2008, Satoshi Nakamoto initially chose the widely used Elliptic Curve Digital Signature Algorithm (ECDSA) for Bitcoin.

  Schnorr Signatures can take multiple keys from a complex Bitcoin transaction and create a single unique signature, aggregating multiple parties into one signature. This process is called signature aggregation, which enhances efficiency and security.

  Taproot 🌳
  BIP 341 outlines how Bitcoin’s protocol integrates Schnorr Signatures. Taproot is a soft fork aimed at enhancing Bitcoin’s scripts to increase privacy and simplify complex transactions. It cloaks all the moving parts of Bitcoin transactions, such as timelock releases and multi-signature requirements, making them look like single transactions.

  With Taproot, it’s possible to hide that a Bitcoin script ran at all. Whether adding a transaction to a Lightning Network channel, conducting a peer-to-peer transaction, or executing a smart contract, all appear as simple peer-to-peer transactions. This upgrade doesn’t change the visibility of the initial sender’s and final recipient’s wallets but enhances overall transaction privacy.

  Key Takeaways:
  Efficiency: Schnorr Signatures reduce the size and complexity of transactions.
  Privacy: Taproot cloaks complex transactions, making them look like single transactions.
  Flexibility: Taproot supports advanced features like timelocks and multi-signature setups.

• Replace By Fee (RBF)

  Replace-by-fee is a technique that allows replacing one version of an unconfirmed transaction with another version of a transaction that pays higher transaction fees. RBF was first introduced in BIP125 and its implementation was released in Bitcoin Core 0.12.0.

  Various node software uses different RBF rules causing several variations. BIP125 opt-in RBF as implemented in Bitcoin Core 0.12.0 is the most commonly used RBF today. This version of RBF allows the transaction creator to indicate that they’re willing to allow their transaction to be replaced with a higher-paying version.

  An unconfirmed transaction can stay as it is forever. It means as long as there are people who are paying higher transaction fees, your unconfirmed transaction can stay as it is and will never be included in a block.

  You are running short of time, so you broadcast another transaction. This new transaction is similar to the previous one, but it includes higher fees. When miners select this transaction, they will receive higher fees. Now, your transaction is more competitive in the market for block space. Wallets like Electrum and Blockstream Green allows an easy way to use RBF.

• What is Polkadot?

  Polkadot is a project by the Web3 Foundation that delivers a framework that allows developers to build and join blockchains together. The network operates cross-chain communication and interoperability by connecting multiple blockchains into one unified network.

  The project’s Lightpaper explains that the network aims to offer advantages of heterogeneous sharding, scalability, upgradeability, transparent governance, and cross-chain composability over other projects.

  Blockchains in isolation are able to process a limited amount of traffic. Polkadot is a sharded multichain network, meaning it can process many transactions on several chains in parallel. This helps in eliminating the limitations that occurred on legacy networks that processed transactions one-by-one.

• Network Congestion

  Network congestion occurs when the number of transactions submitted to the network exceeds its capacity to process these transactions. This phenomenon has several contributing factors, such as external factors including market volatility and intrinsic network characteristics such as block size and block time.

  As more people submit transactions to the blockchain, the number of unconfirmed transactions in the mempool can exceed what can be included in a single block. This is particularly relevant for blockchains with inherent limitations in block size and block time.

  Increased transactions can be driven by sudden price volatilities leading to a surge in transaction activities or waves of mass adoption cycles.

  As blockchain technology is expected to be adopted by more users in the coming years, network congestion issues are gaining prominence. A network’s ability to efficiently process a high volume of transactions is pivotal for widespread adoption and usability. This is particularly relevant for blockchain systems intending to facilitate real-time, everyday transactions.

  While blockchain network congestion poses significant challenges, the community continues to develop solutions to help mitigate these issues. This is why research around blockchain scalability enhancement is at the forefront of the industry.

• What Is Risk Premium?

  At its core, risk premium represents the additional compensation investors expect in return for taking on higher levels of risk. It serves as a quantitative measure of the premium or extra return required by an investor to justify investing in a riskier asset compared to a less risky alternative. Investors, in their pursuit of returns, grapple with the trade-off between risk and reward, and understanding risk premium is essential to making informed investment decisions.

• Cloud mining

  Cloud mining is a process where individuals participate in the mining of cryptocurrencies, such as Bitcoin, without needing to own or manage the mining hardware themselves. This innovative approach allows users to engage in the lucrative world of cryptocurrency mining without the complexities and costs associated with maintaining their own mining equipment.

  Instead of purchasing expensive hardware and dealing with the technical aspects of setting up a mining operation, users pay a fee to rent mining capacities from a company that owns and manages the mining hardware and process. These companies operate large mining farms with high-performance equipment designed to efficiently mine cryptocurrencies. When the rented mining hardware successfully mines a block, the rewards are shared among the users and the company, providing a stream of income based on the amount of computing power rented.

  The term “cloud mining” comes from the concept of cloud computing, which refers to the use of a network of remote servers hosted on the internet to store and process data, rather than a local server. Similarly, cloud mining allows users to rent a share of the mining capacities of cloud mining companies. The mining process takes place “in the cloud,” rather than on your personal computer, making it accessible to anyone with an internet connection.

  One of the main advantages of cloud mining is its accessibility. It removes the barriers to entry for individuals who may not have the technical expertise or financial resources to invest in their own mining equipment. Additionally, cloud mining companies often offer various plans and contracts, allowing users to choose the level of investment that suits their budget and risk tolerance. However, it is essential to research and select reputable cloud mining providers to avoid potential scams and ensure a fair distribution of mining rewards.

  In summary, cloud mining democratizes access to cryptocurrency mining, making it easier for more people to participate in the digital gold rush. By leveraging the power of cloud computing, individuals can benefit from the mining process without the need for significant upfront investments or technical know-how.

• Team and Development

  Research the project’s team, their background, and their track record in the industry. Strong leadership and experienced developers are crucial for a project’s success.

• Earning Interest

  Yield farming and staking are popular ways to earn interest on digital assets. By providing liquidity to DeFi platforms, users can earn rewards in the form of additional tokens. Staking involves locking up tokens to support the network’s operations, such as validating transactions on proof-of-stake blockchains, in exchange for interest or new tokens.

• What Are DeFi Protocols Used For?

  The explosive growth of decentralized finance (DeFi) has revolutionized the financial landscape, offering a variety of innovative products and services. As a result, individuals now have unprecedented access to financial services and products without the need for intermediaries like banks or traditional financial institutions.

  DeFi has democratized finance, allowing anyone with an Internet connection to participate in activities such as lending, borrowing, trading, and earning interest on their digital assets. Here’s a deeper look into some key uses and benefits of DeFi protocols:

  Lending and Borrowing:

  DeFi platforms enable users to lend their digital assets to others and earn interest. This process is automated through smart contracts, ensuring transparency and security.
  Borrowers can access funds by providing collateral, making it easier for individuals to obtain loans without lengthy approval processes or credit checks.
  Trading:

  Decentralized exchanges (DEXs) facilitate peer-to-peer trading of cryptocurrencies. Unlike traditional exchanges, DEXs do not require a central authority, reducing the risk of hacks and improving privacy.
  Automated Market Makers (AMMs) like Uniswap and SushiSwap use liquidity pools to allow users to trade assets directly, enhancing liquidity and reducing slippage.

• What Is Hedging?

  Hedging is a risk management strategy employed by individuals and institutions to offset potential losses that may incur on an investment. The concept is similar to taking out an insurance policy. If you own a home in a flood-prone area, you would want to protect that asset from the risk of flooding by taking out flood insurance.

  In financial and crypto markets, hedging works in a similar way. It involves making an investment designed to reduce the risk of adverse price movements in an asset. Hedging in crypto follows the same principle as hedging in traditional financial markets. It involves taking a position in a related asset that is expected to move in the opposite direction of the primary position.

  Hedging strategies generally involve risks and costs. Option premiums can be expensive, futures can limit your potential gains, and stablecoins rely on the solvency of the issuer. Diversification can help spread risk but won’t necessarily prevent losses.

• Atomic Swap

  Atomic swap is a technology based on smart contracts that enables the exchange of different cryptocurrencies without the need for a centralized market or other intermediaries. Also known as atomic cross-chain trading, atomic swaps involve the trade of one cryptocurrency to another, even if they are running in different blockchain networks.

  The concept of an atomic swap was first described in 2013 by Tier Nolan. It was presented as an innovative technique that would allow independent parties to swap cryptocurrency units directly from their addresses (or cryptocurrency wallets).
  Although Tier Nolan is often acknowledged as the creator of atomic swaps, the idea of performing cross-chain peer-to-peer trades was already being discussed before that. In 2012, Daniel Larimer came up with a trustless exchange protocol called P2PTradeX, which is considered by many as the prototype of atomic swap technology.

  One of the main advantages of using atomic swaps is security as users are not required to provide or use their private keys at any point. Another benefit of such technology is related to the fact that there is no need for centralized exchanges, which results in much lower costs (no deposit, withdrawal or trading fees).

  Moreover, atomic swaps are resistant to fraud because there is no way for one party to extort the other. Technically speaking, the technology relies on the Hash Timelock Contracts (HTLC) and hash functions. The HTLC smart contracts ensure that the swap either happens in totality or not at all.

  For example, say Alice has 5 Bitcoins but wants to trade those for BNBs. Bob, who has BNBs is willing to make the trade. By using atomic swap technology, they are able to perform a peer-to-peer trade without relying on a trusted third-party. This essentially means that two different coins, which are running on separate blockchains, can be traded without any interference.

• Circulating Supply

  The term circulating supply refers to the number of cryptocurrency coins or tokens that are publicly available and circulating in the market.

  The circulating supply of a cryptocurrency can increase or decrease over time. For example, the circulating supply of Bitcoin will gradually increase until the max supply of 21 million coins is reached. Such a gradual increase is related to the process of mining that generates new coins every 10 minutes, on average. Alternatively, coin burn events like the ones performed by Binance, cause a decrease in the circulating supply, permanently removing coins from the market.

  The circulating supply refers to the coins that are accessible to the public and should not be confused with the total supply or max supply. The total supply is used to quantify the number of coins in existence, i.e., the number of coins that were already issued minus the coins that were burned.

  The total supply is basically the sum of the circulating supply and the coins that are locked up in escrow. On the other hand, the max supply quantifies the maximum amount of coins that will ever exist, including the coins that will be mined or made available in the future.

  Moreover, the circulating supply of a cryptocurrency can be used for calculating its market capitalisation, which is generated by multiplying the current market price with the number of coins in circulation.

  So if a certain cryptocurrency has a circulating supply of 1,000,000 coins, which are being traded at $5.00 each, the market cap would be equal to $5,000,000.

• Leveraged Tokens

  Leveraged tokens are a type of cryptocurrency derivative that allows traders to gain leveraged exposure to particular cryptocurrencies without having to manage margin requirements. They are designed to provide traders with a simplified way to trade leveraged positions in cryptocurrencies, allowing them to take leveraged long or short positions without having to constantly manage their margins.

  Leveraged tokens typically work by using an algorithm to automatically adjust the leverage of a token based on the price movement of the underlying cryptocurrency. This means that if the price of the underlying cryptocurrency increases, so does the leverage of the token — and vice versa.

  For example, a 3x long leveraged token for bitcoin would aim to provide three times the daily percentage change of bitcoin’s price movement. So if BTC increases by 1%, the leveraged token should increase by 3%. Conversely, if BTC decreases by 1%, the leveraged token should decrease by 3%.

  It’s important to note that leveraged tokens can be highly volatile and are not suitable for all investors. They can experience significant losses if the price of the underlying cryptocurrencies move in an unexpected direction, and their leveraged nature can magnify losses as well as gains.

  As with all investments, it’s important to do your own research and fully understand the risks before investing in leveraged tokens.

• What do you mean by “REKT”?

  The term rekt derives from the word “wrecked.” In general, rekt is a slang used to define something that got completely destroyed or a person that experienced a catastrophic failure. However, the term may carry different meanings depending on the context.
  In the world of blockchain and cryptocurrencies, rekt is used to describe a severe financial loss, caused by a bad trade or investment.
  To illustrate, let’s suppose Alice is trading on margin and opens a big leveraged long position. If the market goes down and she gets liquidated, we may say “Alice got rekt.” So, rekt is often used to describe someone that got liquidated after losing a high-leveraged trade.
  The slang may also describe an asset that lost too much of its value or a market that dropped significantly (e.g., “this coin is rekt,” or “the market is rekt”).
  Taking another example, imagine that Bob made a heavy investment on a cryptocurrency token through an ICO. But when the token finally hit the market, they were trading at a much lower price than Bob paid during the ICO crowd sale. In such a scenario, we may say that the token got rekt, which resulted in Bob and all bagholders getting rekt as well.
  Within the online gaming community, the term rekt is usually describing a player (or team) that was defeated in an embarrassing or silly way. Or someone that is losing very badly in a competition. But, the oldest use of the slang is perhaps the one originally found in British English, where rekt was used when referring to a person that got too drunk or messed up.

• Sell Wall

  The term sell wall refers to a very large limit sell order or a cumulation of sell orders at one price level on an order book. It is the opposite of a buy wall, which refers to a large buy order or a cumulation of buy orders at one price level.

  While a sell wall can be created by a single entity, it can also be created by the sum of multiple orders placed at the same price level. Typically, when the sell wall is created by a single trader, they are referred to as a “whale.” Due to their large holdings, whales are often able to influence the price of an asset, and sell walls are one of the tools they may use to do that.

  For example, if a trader places a sell order of 10,000 BTC at $5,000, the order book will show a big sell wall that will most likely prevent the price from going above the $5,000 mark. In other words, it would require a strong buying pressure and a significant amount of money to go through the sell wall and breach the $5,000 resistance.

  However, sell walls are often placed just to scare or cause certain impressions on other traders. This means that those orders are rarely filled in their entirety. In fact, whales often create and remove sell walls multiple times in an attempt to influence the price of an asset. For instance, a sell wall may induce other traders to place their selling orders below the wall, potentially causing a downward movement.

  One way to quickly look at buy and sell walls is by looking at the depth chart. These charts are provided by most trading platforms as a graphical representation of the current order book, with all buying and selling orders that are visible within a certain range.

• Due Diligence (DD)

  Due diligence (DD) is somewhat related to DYOR. It refers to the investigation and care that a rational person or a business is expected to make before coming to an agreement with another party.

  When rational business entities come to an agreement, it’s expected that they do their due diligence on each other. Why? Any rational actor wants to ensure that there aren’t any potential red flags with the deal. Otherwise, how could they compare the potential risks with the expected benefits?

  The same is true for investments. When investors are scouting for potential investments, they need to do their own due diligence on the project to ensure that they can take into account all risks. Otherwise, they won’t be in control of their investment decisions and may end up making the wrong choices.

• What Is MiCA (Markets in Crypto Assets Regulation)?

  The Markets in Crypto Assets Regulation (MiCA) is a crucial regulatory framework devised by the European Union that reached consensus in October 2022. Ratified by the European Parliament on April 20, 2023, MiCA is the first framework of its kind in the world and provides clear guidelines and standards for crypto market participants with the aim to ensure consumer protection and maintain market integrity.

  MiCA implementation is scheduled between mid-2024 and early 2025, which could position Europe as the first to implement a regulatory framework of this type. By creating a standardised approach, MiCA looks to support innovation and growth in the crypto market while addressing potential risks and challenges.

• DAI

  DAI is a cryptocurrency categorised as a stablecoin. It aims to keep its value consistent with the U.S. dollar at a 1:1 ratio. It has its own decentralized governing organization, MakerDAO, to regulate its value. It was one of the first to successfully transition from a company to a decentralised autonomous organisation (DAO).

  Users can generate DAI through the Maker Protocol, a system that leverages locked up collateral to generate the token. Users can use other cryptocurrencies as collateral or buy DAI using traditional fiat currencies on cryptocurrency exchanges like Coinbase.

  A framework of self-executing smart contracts autonomously controls the price of DAI. If DAI’s price deviates from USD, MakerDAO’s algorithms will create or burn tokens to stabilise DAI’s price.

  As a result, DAI’s stability is not dependent on a single party. An effective algorithm benefits token holders since burnt tokens increase the value of existing ones. This system has seen DAI maintain a relatively stable value for over six years.

  DAI’s value remains relatively stable due to stored collateral that backs up its value. For every $1 of DAI, there is more than $1 of other cryptos that back it. As a result, DAI holds value. Other cryptocurrencies act as collateral for DAI to maintain this value against the US dollar. DAI uses Ethereum (ETH) and other Ethereum-based cryptos as collateral and smart contracts on the Ethereum blockchain.

• What is Mainnet Swap?

  Essentially, a mainnet swap consists of switching from one blockchain network to another. In most cases, the swap takes place when a cryptocurrency project migrates from a third party platform (e.g., Ethereum) to their own native blockchain network. At this point, their cryptocurrency tokens are gradually replaced by newly issued coins and all blockchain activity is moved to the new chain.

  Let’s take BNB as an example. After the main net launch of Binance Chain, users were encouraged to migrate from the Ethereum blockchain to the Binance Chain. Therefore, ERC-20 BNB token holders started to replace their tokens with the newly issued BEP2 BNB coin (the native coin of Binance Chain). The mainnet swap followed a 1:1 ratio so that 1 ERC-20 BNB had the same value as 1 BEP2 BNB. After the swap, all remaining ERC-20 BNB tokens were burned, so now only the BNB of the new chain can be used.

  Therefore, a mainnet swap takes place when a blockchain project replaces previously issued tokens with their new cryptocurrency, which is typically running on their own blockchain network. This process may also be referred to as “token migration”. Usually, the mainnet swap begins right after the mainnet launch.

• Transactions Per Second (TPS)

  In the context of blockchains, transactions per second (TPS) refers to the number of transactions that a network is capable of processing each second.

  The approximate average TPS of the Bitcoin blockchain is about 5 – though this may vary at times. Ethereum in contrast, can handle roughly double that amount.

  The development of technologies that increase the transaction rate of blockchains has been an important area of research over the years. These decentralized networks pose completely new challenges in terms of their ability to scale for increased demand.

  This challenge isn’t purely about increasing TPS. Centralized databases are already capable of handling thousands of transactions each second. VISA, for example, handles around 1,500-2000 transactions each second. So why not just use these solutions? Well, the main problem is that Bitcoin, Ethereum, and other blockchains aim to compete with that while still maintaining a high degree of decentralization.

  Decentralization comes at the cost of performance and security. So, these scalability solutions not only need to increase the performance of the network but, at the same time, also maintain all the other desirable properties of blockchain. Otherwise, blockchain isn’t really anything more than an inefficient database.

• Securing Your Online Presence: Understanding Two-Factor Authentication

  In this enlightening video, we explore the world of online security, specifically focusing on the importance of Two-Factor Authentication (2FA). Watch and learn how 2FA acts as a major defence layer in securing your online presence against cyber threats. You’ll understand how to implement it and why it’s crucial in safeguarding data in today’s digital era. Don’t remain vulnerable to cyber-attacks—equip yourself with this knowledge and enhance your internet security. If you found this informative, kindly hit the like button and share it with your friends to help them stay secure too.

• Understanding BTC Dominance

  In this informative video, we will explore the concept of Bitcoin (BTC) dominance and its pivotal role in the dynamic world of cryptocurrencies. Learn about the importance of BTC dominance, a metric that measures Bitcoin’s market share relative to other cryptocurrencies, and discover how it can provide valuable insights into the overall health and trajectory of the crypto market.

  We will examine the factors that influence BTC dominance and guide you on how to interpret its fluctuations. Whether you’re an experienced crypto enthusiast or new to digital assets, this video will equip you with the knowledge to make informed decisions and navigate the evolving crypto landscape more effectively.

• What are Fan Tokens?

  Fan tokens are digital assets that are created by sports teams, clubs or brands to increase fan engagement and create new revenue streams. They are built on blockchain technology and allow holders to engage with the team, from buying priority tickets to voting on club decisions such as choosing a new kit, slogan, or jersey design. Fan tokens are purchased with cryptocurrency, and the ownership of the token gives the fan benefits or privileges, such as access to exclusive content or merchandise, voting rights, or even the ability to earn rewards. Note that fan tokens are different from non-fungible-tokens (NFTs) in that they are fungible. This means that any given fan token is equal in every way to any other token of the same type, just as one BTC is equal to another BTC.

• What are Hardware Wallets?

  Hardware wallets are physical devices that store cryptocurrency keys offline (cold storage), providing an extra layer of security. Even though they’re safer from online threats, they can be a bit tricky to use and access compared to other wallets. But, if you plan to keep your crypto for a long time or have a lot of it, a hardware wallet might be a good choice.

  You can set up a PIN code for extra protection, and most of them let you create a backup recovery phrase in case you lose your wallet. Trezor and Ledger are popular examples of hardware crypto wallets.

• Bitcoin CME gaps

  Bitcoin CME gaps refer to discrepancies in price between the closing price on a particular trading day and the opening price on the subsequent trading day on the Chicago Mercantile Exchange (CME), which is among the world’s largest and most diverse financial exchanges. The CME functions as a marketplace for various financial derivatives, commodities, and other investment instruments.

  The occurrence of Bitcoin CME gaps is rooted in the fact that the cryptocurrency market remains open during weekends, while traditional markets like the CME are closed. Consequently, variations exist between the closing price on Friday and the opening price on Monday.

  On Bitcoin charts, identifying CME gaps involves comparing the price levels where the Friday close and Monday open differ. Traders frequently take note of these gaps, as they may later act as significant support or resistance levels. So, are there various types of Bitcoin CME gaps to explore?

  Indeed, there are three primary types of CME gaps: common, breakaway, and exhaustion. Common gaps are swiftly filled and are characteristic of routine market movements. When a gap is filled, it indicates that the price has returned to the level where the gap originally occurred. Breakaway gaps signify the commencement of a strong trend and manifest during major price fluctuations.

  Conversely, exhaustion gaps suggest the conclusion of a trend and a potential reversal.

• What is a cookie?

  A cookie is a small file your computer stores on behalf of a website. There’s a disappointing lack of sugar in them, unfortunately. The name, attributed to programmer Lou Montulli, is based on the name of another computing construct called a magic cookie.

  But why do computers store that file? Well, there are a few different reasons. Broadly speaking, cookies help a web server to remember you. You’ll do something on the website (it could be anything from switching to dark mode to logging in), and your computer makes a note of this. Then, the next time you visit, it hands the information back to the website.

• What Is an API Key?

  An API key is used to control and track who is using an API and how they’re using it. The term “API key” can mean different things for different systems. Some systems have a single code but others can have multiple codes for a single “API key”.

  As such, an “API key” is a unique code or a set of unique codes used by an API to authenticate and authorise the calling user or application. Some codes are used for authentication and some are used for creating cryptographic signatures to prove the legitimacy of a request.

  These authentication codes are commonly referred to collectively as an “API key”, while the codes used for cryptographic signatures go by various names, such as “secret key”, “public key”, or “private key”. Authentication entails identifying the entities involved and confirming they are who they say they are.

  Are API Keys Secure?

  The responsibility of an API key rests with the user. API keys are similar to passwords and need to be treated with the same care. Sharing an API key is similar to sharing a password and as such, should not be done as doing so would put the user’s account at risk.

  API keys are commonly targeted in cyberattacks because they can be used to perform powerful operations on systems, such as requesting personal information or executing financial transactions. In fact, there have been cases of crawlers successfully attacking online code databases to steal API keys.

  The consequences of API key theft can be drastic and lead to significant financial loss.

  Furthermore, as some API keys don’t expire, they can be used indefinitely by attackers once stolen, until the keys themselves are revoked.

• Multisig Wallet

  Multisig stands for multi-signature, which is a specific type of digital signature that makes it possible for two or more users to sign documents as a group. Therefore, a multi-signature is produced through the combination of multiple unique signatures.

  Multisig technology has been extant within the world of cryptocurrencies, but the principle is one that existed long before the creation of Bitcoin.

  In the context of cryptocurrencies, the technology was first applied to Bitcoin addresses in 2012, which eventually led to the creation of multisig wallets, one year later. Multisig addresses may be used in different contexts, but most use cases are related to security concerns. Hereby we discuss their use within cryptocurrency wallets.

  As a simple analogy, we can imagine a secure deposit box that has two locks and two keys. One key is held by Alice and the other one is held by Bob. The only way they can open the box is by providing their both keys at the same time, so one cannot open the box without the consent of the other.

  Basically speaking, the funds stored on a multi-signature address can only be accessed by using 2 or more signatures. Therefore, the use of a multisig wallet enables users to create an additional layer of security to their funds.

• What Is a Price Channel?

  The term price channel refers to a signal that appears on a chart when a security’s price becomes bounded between two parallel lines. The price channel may be termed horizontal, ascending, or descending depending on the direction of the trend.

  Price channels are often used by traders who practice the art of technical analysis to gauge the momentum and direction of a security’s price action and to identify trading signals.

  The dominance of one force determines the price channel’s trending direction.

• What is a Ponzi scheme?

  Ponzi schemes are named after Charles Ponzi, an Italian swindler that moved to North America and became famous for his fraudulent money-making system. In the early 1920s, Ponzi managed to defraud hundreds of victims and his scheme ran for over a year.

  Basically, a Ponzi scheme is a fraudulent investment scam that works by paying off older investors with money collected from new investors. The problem with such a scheme is that investors on the backend will not be paid at all.

  A Ponzi scheme in operation would look somewhat like this:

  1. A promoter of an investment opportunity takes $1000 from an investor. He promises to repay the initial value along with a 10% interest at the end of a predefined period (e.g., 90 days).

  2. The promoter is able to secure two additional investors before the 90 day period is complete. He will then pay $1100 dollar to the first investor from the $2000 collected from investors two and three. He will also likely encourage the first investor to reinvest the $1000.

  3. By taking the money from new investors, the impostor is able to pay the promised returns to the early investors, convincing them to reinvest and to invite more people.

  4. As the system grows, the promoter needs to find more new investors to join the scheme. Otherwise, he will not be able to pay the promised returns.

  5. Eventually, the scheme gets unsustainable and the promoter either gets caught or disappears with the money he has on hand.

• Index investing

  Typically, index investing means buying ETFs and indices in the traditional markets. However, this type of product is also available in the cryptocurrency markets. Both on centralised cryptocurrency exchanges and within the Decentralized Finance (DeFi) movement.
  The idea behind a crypto index is to take a basket of cryptoassets and create a token that tracks their combined performance.
  This basket may be made up of coins from a similar sector, such as privacy coins or utility tokens. Or, it could be something else entirely, as long as it has a reliable price feed. As you’d imagine, most of these tokens heavily rely on blockchain oracles.
  How can investors use crypto indexes?
  For example, they could invest in a privacy coin index instead of picking an individual privacy coin. This way, they can bet on privacy coins as a sector while eliminating the risk of betting on a single coin.
  Tokenised index investing will likely become more popular over the coming years. It enables a more hands-off approach to investing in the blockchain industry and cryptocurrency markets.

• What is Scalping?

  Scalping is one of the quickest trading strategies out there. Scalpers don’t try to take advantage of big moves or drawn-out trends. It’s a strategy that focuses on exploiting small moves over and over again. For example, profiting off of bid-ask spreads, gaps in liquidity, or other inefficiencies in the market.

  Scalpers don’t aim to hold their positions for a long time. It’s quite common to see scalp traders opening and closing positions in a matter of seconds. This is why scalping is often related to High-Frequency Trading (HFT).

  Scalping can be an especially lucrative strategy if a trader finds a market inefficiency that happens over and over again, and that they can exploit. Each time it happens, they can make small profits that add up over time.

  Scalping is generally ideal for markets with higher liquidity, where getting in and out positions is relatively smooth and predictable.

  Scalping is an advanced trading strategy that isn’t recommended for beginner traders due to its complexity. It also requires a deep understanding of the mechanics of the markets.

  Other than that, scalping is generally more suitable for large traders (whales). The percentage profit targets tend to be smaller, so trading larger positions makes more sense.

• What is Swing trading?

  Swing trading is a type of longer-term trading strategy that involves holding positions for longer than a day but typically not longer than a few weeks or a month. In some ways, swing trading sits in the middle between day trading and trend trading.

  Swing traders generally try to take advantage of waves of volatility that take several days or weeks to play out. Swing traders may use a combination of technical and fundamental factors to formulate their trade ideas. Naturally, fundamental changes may take a longer time to play out, and this is where fundamental analysis comes into play. Even so, chart patterns and technical indicators can also play a major part in a swing trading strategy.

  Swing trading might be the most convenient active trading strategy for beginners. A significant benefit of swing trading over day trading is that swing trades take longer to play out. Still, they’re short enough so that it’s not too hard to keep track of the trade.

  This allows traders more time to consider their decisions. In most cases, they have enough time to react to how the trade is unfolding. With swing trading, decisions can be made with less haste and more rationality.

  On the other hand, day trading often demands fast decisions and speedy execution, which isn’t ideal for a beginner.

• What is crypto lending?

  Crypto lending works by taking crypto from one user and providing it to another for a fee. The exact method of managing the loan changes from platform to platform. You can find crypto lending services on both centralized and decentralized platforms, but the core principles remain the same.

  You don’t just have to be a borrower, either. You can passively earn an income and gain interest by locking up your crypto in a pool that manages your funds. Depending on the reliability of the smart contract you use, there is usually little risk of losing your funds. This could be because the borrower put up collateral, or a CeFi (centralized finance) platform like Binance manages the loan.

• What is risk management?

  Risk management entails predicting and identifying financial risks involved with your investments to minimise them. Investors then employ risk management strategies to help them manage their portfolio’s risk exposure. A critical first step is assessing your current exposure to risks and then building your strategies and plans around them.

  Risk management strategies are plans and strategic actions traders and investors implement after identifying investment risks. These strategies reduce risk and can involve a wide range of financial activities, such as taking out loss insurance and diversifying your portfolio across asset classes.

  Risk Management Strategies

  The 1% rule is a simple risk management strategy that entails not risking more than 1% of your total capital on an investment or trade.

  A stop-loss order sets a predetermined price for an asset at which the position will close. The stop price is set below the current price and, when triggered, helps protect against further losses. A take-profit order works the opposite way, setting a price at which you want to close your position and lock in a certain profit.

  Diversifying your portfolio is one of the most popular and fundamental tools to reduce your overall investment risk. A diversified portfolio won’t be too heavily invested in any asset or asset class, minimising the risk of heavy losses from one particular asset or asset class. For instance, you may hold a variety of different coins and tokens, as well as provide liquidity and loans.

• What is Day Trading?

  Day trading might be the most well-known active trading strategy. It’s a common misconception to think that all active traders are by definition day traders, but that isn’t true.

  Day trading involves entering and exiting positions on the same day. As such, day traders aim to capitalise on intraday price movements, i.e., price moves that happen within one trading day.

  The term “day trading” stems from the traditional markets, where trading is open only during specific hours of the day. So, in those markets, day traders never stay in positions overnight, when trading is halted.

  Most digital currency trading platforms are open 24 hours a day, 365 days a year. So, day trading is used in a slightly different context when it comes to the crypto markets. It typically refers to a short-term trading style, where traders enter and exit positions in a timespan of 24 hours or less.

  Day traders will typically use price action and technical analysis to formulate trade ideas. Besides, they may employ many other techniques to find inefficiencies in the market.

  Day trading cryptocurrency can be highly profitable for some, but it’s often quite stressful, demanding, and may involve high risk. As such, day trading is recommended for more advanced traders.

• How to Secure My Seed Phrase?

  Your seed phrase (also known as recovery phrase) is the gateway to your wallet and cryptocurrency holdings. It’s a sequence of 12 to 24 words that serves as your wallet master key in case you lose access to your wallet or need to migrate to a new device. Below are some tips on how to secure your seed phrase.

  Store your seed phrase offline

  The moment you get your seed phrase, avoid saving it in local folders or cloud storage. Storing the phrase online may expose it to potential hacks. The safest approach is to store them offline.

  One way to do this is by investing in a hardware wallet that can generate your seed phrase and store it offline. Another option is to back up your seed phrase physically inside a vault or safe. You could use a paper backup, but it’s safer to use a metal plate with the seed phrase engraved.

  Split your seed phrase

  If you want to enhance the security of your seed phrase further, you may split it into multiple parts and store them in different secure locations. Keep copies of your seed phrase in various physical places, such as bank vaults, safety deposit boxes, or trusted individuals. Ideally, no one but you should have access to all parts of your seed phrase.

• What is a Block Explorer?

  In short, a block explorer is a tool that provides detailed analytics about a blockchain network since its first day at the genesis block. We can say a block explorer acts as a search engine and browser where users can find information about individual blocks, public addresses, and transactions associated with a specific cryptocurrency.

  Some block explorers also provide real-time statistics and market charts, as well as data about mining pools, pending transactions, network hash rate, rich list, block validators, orphan blocks, hard fork, and much more.

  In regards to pending transactions, block explorers can be useful for users that are waiting for block confirmations. For instance, many exchanges provide their users with the transaction ID of their deposit or withdrawal request so they can track the movement of their funds in real-time.

  Depending on the type of blockchain, block explorers can also serve as a general information hub. For instance, there are thousands of ERC-20 tokens running on top of the Ethereum blockchain, and users can find data about them by checking their smart contracts on Etherscan or other Ethereum block explorer.

• How Do Bitcoin Ordinals Work?

  The Ordinals protocol is a system for numbering satoshis, giving each satoshi a serial number and tracking them across transactions. Simply put, ordinals allow users to make individual satoshis unique by attaching extra data to them. This process is known as “inscription.” A satoshi – named after Bitcoin’s pseudonymous creator Satoshi Nakamoto – is the smallest denomination of bitcoin (BTC). A single BTC can be divided into 100,000,000 satoshis, meaning each satoshi is worth 0.00000001 BTC.

  Satoshis are numbered based on the order in which they were mined and transferred. The numbering scheme relies on the order satoshis are mined, while the transfer scheme relies on the order of transaction inputs and outputs. Hence the name “ordinals.” The first satoshi in the first block has the ordinal number 0, and the second has the ordinal number 1, and so on. According to ordinal theory, these ordinal numbers act as stable identifiers for the data attached to sats.

  While traditional NFTs are similar to ordinals in some ways, there are a few key differences. NFTs have typically been made using smart contracts on blockchains such as Ethereum, Solana, and the BNB Chain, and sometimes, the assets they represent are hosted elsewhere.

  Conversely, ordinals are inscribed directly onto individual satoshis, which are then included in blocks on the Bitcoin blockchain. Ordinals reside fully on the blockchain and do not require a sidechain or separate token. In this sense, ordinal inscriptions inherit the simplicity, immutability, security, and durability of Bitcoin itself.

• What is an elastic supply token?

  An elastic supply (or rebase) token works in a way that the circulating supply expands or contracts due to changes in token price. This increase or decrease in supply works with a mechanism called rebasing. When a rebase occurs, the supply of the token is increased or decreased algorithmically, based on the current price of each token.

  In some ways, elastic supply tokens can be paralleled with stablecoins. They aim to achieve a target price, and these rebase mechanics facilitate that. However, the key difference is that rebasing tokens aim to achieve it with a changing (elastic) supply.

  Wait, aren’t many cryptocurrencies operating with a changing supply?

  Yes, somewhat. Currently, 6.25 new BTC is minted with every block. After the 2024 halving, this is going to be reduced to 3.125 per block. It is a predictable rate, so we can estimate how much BTC will exist next year or after the next halving.

  Supply-elastic tokens work differently. As mentioned, the rebasing mechanism adjusts the token circulating supply periodically. Let’s say we have an elastic supply token that aims to achieve a value of 1 USD. If the price is above 1 USD, the rebase increases the current supply, reducing the value of each token. Conversely, if the price is below 1 USD, the rebase will decrease the supply, making each token worth more.

  What does this mean from a practical standpoint?

  The amount of tokens in user wallets changes if a rebase occurs. Let’s say we have Rebase USD (rUSD), a hypothetical token that targets a price of 1 USD. You have 100 rUSD safely sitting in your hardware wallet. Let’s say the price goes below 1 USD. After the rebase occurs, you’ll have only 96 rUSD in your wallet, but at the same time, each will be worth proportionally more than before the rebase.

  The idea is that your holdings proportional to the total supply haven’t changed with the rebase. If you had 1% of the supply before the rebase, you should still have 1% after it, even if the number of coins in your wallet has changed. In essence, you retain your share of the network no matter what the price is.

• What is a short squeeze?

  A short squeeze happens when the price of an asset sharply increases due to a lot of short sellers being forced out of their positions.

  Short sellers are betting that the price of an asset will decline. If the price rises instead, short positions start to amass an unrealised loss. As the price goes up, short sellers may be forced to close their positions. This can occur via stop-loss triggers, liquidations (for margin and futures contracts). It can also happen simply because traders manually close their positions to avoid even greater losses.

  So, how do short sellers close their positions?
  They buy. This is why a short squeeze results in a sharp price spike. As short sellers close their positions, a cascading effect of buy orders adds more fuel to the fire. As such, a short squeeze is typically accompanied by an equivalent spike in trading volume.

  Here’s something else to consider. The larger the short interest is, the easier it is to trap short sellers and force them to close their positions. In other words, the more liquidity there is to trap, the greater the increase in volatility may be thanks to a short squeeze. In this sense, a short squeeze is a temporary increase in demand while a decrease in supply.

  The opposite of a short squeeze is a long squeeze – though it’s less common. A long squeeze is a similar effect that happens when longs get trapped by cascading selling pressure, leading to a sharp downward price spike.

• Dollar Cost Averaging (DCA)

  In this video, we delve into the concept of Dollar Cost Averaging (DCA) – a strategy embraced by savvy investors to minimise risk in the market. Join us as we break down how DCA works, its benefits, and practical tips for implementation. Whether you’re new to investing or a seasoned pro, understanding DCA is crucial for building a resilient investment portfolio. If you’re looking to enhance your investment knowledge and make informed financial decisions, this video is a must-watch! Don’t forget to like and share with fellow traders. Happy trading!

• Triple Bottom Reversals

  Unlock this valuable strategy for navigating the markets with confidence as we delve into the intricacies of this powerful pattern. Learn essential trading tips and technical analysis insights to capitalise on potential market shifts. Whether you’re a seasoned investor or just starting out, this video provides invaluable knowledge to enhance your trading skills. Don’t miss out on this opportunity to elevate your trading game!

• Futures Contracts

  In this video, we dive into the world of futures contracts – what they are, how they work, and why they’re important in trading. Whether you’re new to investing or a seasoned trader, understanding futures contracts is crucial. Join us as we break down the basics, explore real-life examples, and discuss the implications of futures trading in the financial markets. By the end of this video, you’ll have a solid grasp of this key trading instrument.

• Sharding Explained

  In this video, we delve into the intriguing world of blockchain technology and explore the concept of sharding – a crucial development that is revolutionising the way blockchains operate. Join us as we break down the complexities of sharding, discuss its numerous benefits, and unravel how it fundamentally transforms blockchain networks. Whether you’re a blockchain enthusiast or just curious about cutting-edge technology, this video is a must-watch!

• Decoding Trading Indicators: Leading vs Lagging

  In this video, we delve into the world of trading indicators, focusing on the key differences between leading and lagging indicators and their significance in stock, Forex, and cryptocurrency trading.

  Understanding the distinction between these two types of indicators is crucial for making informed trading decisions and maximising profits in the financial markets.

  Whether you are a beginner looking to enhance your trading knowledge or a seasoned trader aiming to refine your strategy, this video provides valuable insights to help you navigate the dynamic world of trading.

  Like this video if you found it helpful and share it with your fellow traders to spread the knowledge!

  Let’s decode leading and lagging indicators together.

• Decoding Trading Indicators: Leading vs Lagging

  In this video, we delve into the world of trading indicators, focusing on the key differences between leading and lagging indicators and their significance in stock, Forex, and cryptocurrency trading.

  Understanding the distinction between these two types of indicators is crucial for making informed trading decisions and maximising profits in the financial markets.

  Whether you are a beginner looking to enhance your trading knowledge or a seasoned trader aiming to refine your strategy, this video provides valuable insights to help you navigate the dynamic world of trading.

  Like this video if you found it helpful and share it with your fellow traders to spread the knowledge!

  Let’s decode leading and lagging indicators together.

• Breaking Down the Breakeven Point

  In this video, we delve into the fundamental concept of breakeven point in finance and explore its implications in the blockchain industry.

  Understanding breakeven point is crucial for businesses and investors to make informed decisions.

  Join me as I breakdown this concept and showcase its relevance in the ever-evolving world of blockchain technology.

  If you find this video informative, don’t forget to hit the like and share it with your friends who are interested in finance and blockchain.

  Let’s learn and grow together!

• Hedging: Your Financial Safety Net in Cryptocurrency

  In this video, we explore the fundamental importance of financial safety nets, with a specific focus on hedging strategies within the unpredictable world of cryptocurrency. Join us as we delve into the concept of hedging and how it can help you navigate the volatility of digital assets effectively. Discover key insights and practical tips for protecting your investments in cryptocurrency. Whether you’re a seasoned trader or a newcomer to the space, this video has valuable information for you. Learn how to hedge against market risks and potential losses, ensuring you have a safety net in place during turbulent times in the crypto market. Don’t miss out on this essential discussion that could safeguard your financial future. Like and share this video with others who are interested in mastering the art of hedging in cryptocurrency!

• Unraveling Blockchain: The Power of Transaction IDs

  In this eye-opening video, we delve deep into the world of blockchain technology to demystify the concept of Transaction IDs. Whether you’re a blockchain enthusiast or just curious about this innovative technology, this video is not to be missed! Join me as I break down the complexities of Transaction IDs and explain their crucial role in the integrity and security of blockchain transactions. With insights based on verified facts, you’ll gain a comprehensive understanding of how Transaction IDs work and why they are essential in the world of cryptocurrencies and decentralized systems. Don’t miss out on this informative discussion – hit the like button if you found this video helpful, and share it with your friends who are eager to grasp the fundamentals of blockchain technology. Let’s spread knowledge together!

• Bitcoin Futures ETFs

  In this video, we’re diving deep into the world of Bitcoin Futures ETFs, demystifying how they bridge traditional finance with the digital age. Learn how these investment products work, their significance in the cryptocurrency market, and how they can potentially impact your investment strategies. Whether you’re a seasoned investor or new to the world of finance, this video will provide valuable insights to help you navigate this evolving landscape.

• Unlocking the Secrets of Token Lockup

  In this insightful video, we delve into the intriguing realm of Token Lockup, an essential concept in the world of cryptocurrency. Join us as we uncover the layers of its significance and explore how it influences the market. Whether you’re new to crypto or a seasoned investor, this video is packed with valuable information that you don’t want to miss! Don’t forget to like and share this video to help others understand the importance of Token Lockup as well. Happy Trading!!

• Merged Mining

  In this video, we explore the fascinating concept of Merged Mining in the realm of cryptocurrency. We’ll cover everything from its fundamentals to its operational mechanisms, demystifying this sophisticated subject with established facts and expert insights. Whether you’re new to Merged Mining or seeking deeper knowledge, this video is tailored for you. Remember to hit like and share this video with others keen on unraveling the complexities of cryptocurrency mining!

• Binance Bridge

  Uncover the mystery of wrapped coins and tokens in the crypto space with our latest video! Join us as we delve into how the Binance Bridge is transforming the world of cryptocurrencies. Learn all about the process, benefits, and impact of wrapped assets. Don’t miss out on this insightful discussion – like and share this video with your fellow crypto enthusiasts to spread the knowledge!

• block halving

  A block halving is a process of reducing the rate at which new cryptocurrency units are generated. Specifically, it refers to the periodical halving events that decrease the block rewards provided to miners. Halvings are at the core of the cryptocurrency economic models because they ensure coins will be issued at a steady pace, following a predictable decaying rate. Such a controlled rate of monetary inflation is one of the main differences between cryptocurrencies and traditional fiat currencies, which essentially have an infinite supply. As of July 2019, there have only been two previous Bitcoin halving events. These occurred on the 28th of November, 2012 and the 9th of July, 2016. At the time of the first halving event, the price of Bitcoin was $12.31 and at the time of the second halving event, the price of Bitcoin was $650.63. There will only ever be 32 bitcoin halving events. Once all of these have occurred, there will be no more halvings and there will also be no more Bitcoin created as the maximum supply will have been reached.

• Unpacking Forced Liquidation: A Trader’s Guide

  In this informative video, we delve into the intricacies of forced liquidation in trading, aiming to demystify this crucial concept for both new and experienced traders.

  Understanding forced liquidation is fundamental in navigating the volatile financial markets and safeguarding your investments.

  Join us on this educational journey as we break down the complexities of forced liquidation, providing valuable insights and strategies to help you trade with confidence and minimize risks.

  Don’t miss out on this essential guide to forced liquidation in trading – like, share, and spread the knowledge to empower fellow traders!

• Unraveling the Mysteries of Arbitrage Trading

  In this video, we delved into the fascinating world of arbitrage trading, with a focus on the ever-evolving realm of cryptocurrencies.

  Arbitrage trading involves taking advantage of price differences of the same asset on different platforms or markets, ultimately reaping profit from the market inefficiencies.

  Join us as we explore how arbitrage trading works, its potential risks and rewards, and how it unfolds within the fast-paced and volatile cryptocurrency space.

  If you’re curious about maximising gains through strategic trading practices, this video is a must-watch! Don’t forget to give it a thumbs up and share it with your fellow trading enthusiasts. Let’s uncover the secrets of arbitrage trading together!

• Debunking Investment Myths

  In this video, we disprove common investment myths and provide you with smarter strategies to help you make informed investment decisions.

  If you’re looking to grow your wealth wisely, this video is a must-watch!

  We’ll cover topics like the importance of diversification, long-term investing vs. day trading, identifying and managing risks, and much more. Whether you’re a beginner or a seasoned investor, there’s something here for everyone.

  Don’t let myths hold you back from achieving your financial goals. Watch the video, share it with your friends, and let’s debunk those investment myths together! Your future self will thank you for it.

• Types of Air-Gapped Wallets

  Air-gapped wallets can come in a variety of different forms but the following are the most common air-gapped wallets.

  Air-gapped hardware wallets
  These are specially-built hardware devices designed to store private keys offline. These wallets generally facilitate transactions without ever exposing the private keys to an online environment or wireless communications. These devices usually have a digital screen to display transaction information and physical or touch buttons to manually approve transactions.

  Air-gapped computers
  Users can also dedicate an entire computer to serve as an air-gapped wallet. This computer is usually never connected to the Internet and is used exclusively for storing private keys and signing transactions. The unsigned transactions are conveyed to air-gapped computers typically via a USB stick and the signed transactions are transferred out the same way. This approach can be more complex and requires a higher level of technical skills.

  Air-gapped smartphones
  Similar to air-gapped computers, a smartphone can also be used as an air-gapped wallet. The phones can be factory reset and set up without any connection to the Internet. Wallet software is installed via an SD card or similar methods. This can also be complex and will require advanced technical skills.

• What is ERC-1155 Token Standard?

  ERC-1155 is a standard on the Ethereum blockchain designed to streamline and optimise the creation and management of digital assets. It was proposed by Enjin, a blockchain gaming company.

  While prior Ethereum token standards like ERC-20 and ERC-721 could only manage one type of token (fungible and non-fungible, respectively), ERC-1155 is unique because it can manage multiple token types within a single contract. This reduces complexity and makes interactions more efficient.

  ERC-20 tokens are fungible, like real-world currency, where each unit is interchangeable with any other. ERC-721 tokens, on the other hand, are non-fungible and represent unique items or assets.

  ERC-1155 combines these functionalities. It allows for the creation of both fungible and non-fungible tokens within a single smart contract, with each token identified by an ID. It reduces the amount of data and code required for token transactions, thereby saving on gas fees and making operations more gas-efficient.

  This versatility makes ERC-1155 ideal for various use cases, particularly in the gaming and digital collectibles sectors. For instance, in a gaming ecosystem, a single ERC-1155 contract could govern various types of tokens – representing game currency, unique characters, weaponry, skins, and more.

• Unraveling the Intricacies of Funding Rates

  In this video, we delve into the complex world of funding rates and their significant impact on perpetual swap contracts and trading strategies.

  Discover the ins and outs of how funding rates work, why they matter, and how you can leverage this knowledge to enhance your trading game.

  Whether you’re a seasoned trader or new to the game, understanding funding rates is crucial for success in the crypto market.

  Don’t miss out on this essential breakdown!

  If you find this video insightful, don’t forget to hit the like button and share it with your fellow traders.

• What does hyperinflation mean?

  Hyperinflation refers to a sharp increase in a country’s money supply, which leads to order of magnitude increases in average prices for goods and services. The more currency enters a country’s economy, the less valuable each unit becomes. This devaluation of fiat currency forces manufacturers and businesses to raise prices, often leading to a vicious hyperinflationary spiral.

  While hyperinflation and inflation involve the same currency devaluation process, the former has more catastrophic economic effects. Most economists define hyperinflation as a monthly inflation rate of more than 50%. Contextually, many central banks in industrialized nations strive to maintain a ‘healthy’ inflation rate of 2% per month.
  Some financial analysts even use the terms ‘hyperinflation’ and ‘superinflation’ interchangeably.

• Do Your Own Research (DYOR)

  When it comes to the financial markets, DYOR is a term closely related to Fundamental Analysis (FA). It means that investors should do their own research into their investments and not rely on others to do it for them. “Don’t trust, verify” is a commonly used phrase in the cryptocurrency markets with similar meaning.

  The most successful investors will do their own research and come to their own conclusions. As such, anyone who wants to be successful in the financial markets will have to come up with their own unique trading strategy. This may also lead to disagreements between different investors, which is a completely natural part of investment and trading. An investor may be bullish on an asset, while another may be bearish.

  Different opinions can accommodate for different strategies, and successful traders and investors will have wildly different strategies. The main idea is that they all did their own research, came to their own conclusions, and made their investment decisions based on those conclusions.

• What is the meaning of BUIDL?

  BUIDL is a derivative term of HODL. It usually describes participants of the cryptocurrency industry who continue to build regardless of price fluctuations. The main idea is that true believers of the crypto industry keep building the ecosystem regardless of brutal bear markets. In this sense, “BUIDLers” genuinely care about what blockchain and cryptocurrencies can bring to the world, and they are actively working towards this goal.

  BUIDL is a mindset that aims to exemplify how cryptocurrencies aren’t just about speculation, but about bringing this technology to the masses. It acts as a reminder to keep our heads down and keep building the infrastructure that may very well serve billions of people in the future. In addition, BUIDLers understand that the teams that keep building with a long-term mindset will likely do well over the long-run.

• Stablecoins Uncovered: The Mystery of Pegs

  In this video, we delve deep into the fascinating realm of stablecoins and their crucial pegs.

  Discover what keeps stablecoins stable, explore the concept of stablecoin pegs, and unravel the mysteries behind depegging events. Uncover how these digital assets are tied to traditional assets and the significant implications when they depeg.

  Gain valuable insights into the stability and volatility that define the world of stablecoins. If you’re curious about the inner workings of stablecoins and want to understand how pegs impact their value, this video is a must-watch!

  Remember to like this video if you find it informative, and don’t forget to share it with anyone interested in demystifying the complexities of stablecoin pegs and depegging events.

  Let’s spread the knowledge together!

• What are stablecoin pegs?

  Stablecoin pegs are mechanisms that stabilize the value of a stablecoin by linking it to a reserve of assets or another currency. For example, a stablecoin may peg its value to the US dollar, maintaining a 1:1 ratio, thus ensuring that one stablecoin can always be exchanged for one dollar. This stability helps to reduce volatility often seen in cryptocurrencies, making stablecoins attractive for transactions and as a store of value.

• What is fundamental analysis?

  Fundamental analysis is a method used by investors and traders to attempt to establish the intrinsic value of assets or businesses. To value these accurately, they’ll rigorously study internal and external factors to determine whether the asset or business in question is overvalued or undervalued. Their conclusions can then help to better formulate a strategy that will be more likely to yield good returns.

  For instance, if you took an interest in a company, you might first study things like the company’s earnings, balance sheets, financial statements, and cash flow to get a feel for its financial health. You might then zoom out of the organisation to look at the market or industry it’s operating in.

  The end goal with this type of analysis is to generate an expected share price and to compare it with the current price. If the number is higher than the current price, you might conclude that it’s undervalued. If it’s lower than the market price, then you could assume that it’s presently overvalued. Armed with the data from your analysis, you can make informed decisions about whether to buy or sell that particular company’s stock.

• Understanding PAX Gold (PAXG): The Gold-Backed Stablecoin

  Discover the power of PAX Gold, a stablecoin backed by physical gold reserves. In this video, we’ll dive into the inner workings of this innovative cryptocurrency, exploring its unique benefits and robust security measures.

  Learn how PAX Gold provides a stable, gold-backed alternative to traditional fiat currencies, offering users a hedge against market volatility. Understand the intricate process of how PAX Gold is minted, backed by audited gold reserves, and the steps taken to ensure the integrity of the system.

  Uncover the advantages of using PAX Gold, from its real-time redeem ability to its global accessibility. Gain insights into the security protocols and regulatory compliance that make PAX Gold a trusted option for individuals and institutions alike.

  Don’t miss out on this informative exploration of the world of PAX Gold. Like and share this video to spread the knowledge and stay ahead of the curve in the ever-evolving world of digital assets.

• WHAT IS PAX GOLD

  Pax Gold (PAXG) is a digital asset backed by physical gold. Each Pax Gold token is equal to one fine troy ounce of gold stored in a professional vault. Paxos, the company behind PAXG, has built this cryptocurrency to offer individuals an easy way to own and trade gold on the blockchain.

• Secure Asset Fund for Users (SAFU)

  The Secure Asset Fund for Users (SAFU) is an emergency fund that was established by Binance in July 2018 to protect users’ funds. When the fund was established, Binance committed a percentage of trading fees in order to grow it to a sizeable level to safeguard users.

  The Secure Asset Fund was valued at US$1 billion based on the opening price on January 29, 2022. The value of the fund will fluctuate based on the market. The SAFU fund wallets comprise BNB, BTC, USDT, and TUSD.

  SAFU wallet addresses:

  • BTC: 1BAuq7Vho2CEkVkUxbfU26LhwQjbCmWQkDn
  • BNB and USDT (BEP20): 0x4B16c5dE96EB2117bBE5fd171E4d203624B014aa
  • TUSD (ERC20): 0x4B16c5dE96EB2117bBE5fd171E4d203624B014aa

  The origin of SAFU
  During unscheduled maintenance, Changpeng Zhao (CZ), the Binance CEO, tweeted out to users stating: “Funds are safe”

  After this, the phrase “Funds are safe” became regularly used by CZ to ensure users were aware that their funds were, in fact, safe.

  In 2018, a content creator named Bizonacci uploaded a video on YouTube titled “Funds Are Safu”. It quickly spread and became a viral meme. Since then, the community began using the phrase “Funds are SAFU.”