Leverage is a fundamental part of a maturing financial asset. And while many trade Bitcoin without leverage, you cannot ignore the impact that leverage has on the market.
Leverage shapes market activity on the upside and the downside.
For Bitcoin traders, even when you don’t use leverage, it directly impacts your hodlings.
So you have to be aware of how leverage works even when you aren’t using it directly.
Unique trading opportunities are created when leverage is periodically unwound.
These events can be painful, but for those that see markets as a series of opportunities, the events can be valuable.
If you are trading or just getting into crypto, you will eventually hear about proof-of-work and proof-of-stake.
You might be wondering what they mean and why they might matter to you.
One of the advantages of crypto is that it has a decentralized peer-to-peer network. The network operates based on consensus defined by proof-of-work or proof-of-stake.
Bitcoin uses proof-of-work to secure the network and clear transactions. Ethereum is moving from proof-of-work to proof-of-stake for their network.
The choice of consensus defines how the network is secured, rewarded and guided.
It also defines the potential for scalability and energy consumption.
One of the challenges in trading is starting with a trading idea that isn’t your own.
You’re on a forum one day, and someone says you should buy Bitcoin, an altcoin or some token.
They proclaim it’s a no-brainer, but they rarely show you all the thinking or the trading plan.
The identity of these advice volunteering members is often unknown.
Their track record is unverified or lacks context.
The advice is a mix of cliche, canned answers and “just buy some and put it away.”
Or put another way, nothing that someone who was planning to get wealthy could…
Is a cryptocurrency a token?
Is an altcoin a cryptocurrency?
Can a cryptocurrency be an altcoin and a token?
Crypto provides us with numerous terms that sometimes sound like marketing.
For example, in another age, you would never associate with someone who was trustless. But in crypto, trustless is considered a benefit of a decentralized peer-to-peer payment system.
Early in crypto’s development, there was Bitcoin.
Then there was Bitcoin and everything else.
Then came the ICO’s of 2017.
Followed by the regulators.
The crypto market became almost hierarchical, with Bitcoin at the top, then altcoins followed by tokens.
Wow, that Bitcoin news makes trading tough sometimes.
You’re enjoying a strong market, and then something comes out of nowhere.
Then things seem to get chaotic and volatile.
Despite being referred to repeatedly as digital gold, Bitcoin is still speculative.
One day you’re hearing wild price predictions for BTC to CAD.
The next, it seems like it’s one bad news story after another.
Then comes another leverage bomb… And then Elon Musk chimes in…
News, blog posts and forums can have a powerful influence on market behaviour.
As a Bitcoin trader or a trader in any crypto asset, you can’t…
Losing is painful.
And losing day after day is disorienting and potentially destructive. It doesn’t matter whether the losses come from a leverage bomb in Bitcoin or a protracted sideways market in ETH.
Losses are hard.
You went from a can’t do anything wrong trader to a nothing seems to go right trader.
If you’ve only had winners during a Bitcoin and Ether bull market, these losses can be psychologically devastating.
Great traders are never made in bull markets. They are forged in pain, adversity and challenges. …
When most people think of cryptocurrency, Bitcoin is usually the first thing that comes to mind. And that’s understandable because Bitcoin is the first and the biggest cryptocurrency.
In marketing language, Bitcoin is the crypto category king.
But its little brother, Ethereum, has been developing several crypto categories on its own. When you hear about DeFi, NFTs, stablecoins and DAOs, all of these crypto categories started on Ethereum.
Bitcoin is laser-focused on one asset, BTC. Ethereum takes the opposite approach emphasizing a general-purpose platform. …
Remember when people started talking about Bitcoin and Ether as the future of money?
It seems so long ago.
You could send it to someone on the network.
You could trade on an exchange.
In some instances, you could buy some things with your BTC and ETH.
You already know the story about the pizza and Bitcoin that got it all started.
But for the most part, the usefulness of crypto was more as a capital gains play than a medium of exchange.
It’s taken some time for crypto to fulfill its promise as the next generation of money. …
What is DeFi?
Like most of crypto, the answer is simple and complex.
DeFi stands for decentralized finance. It’s based on the idea that the centralized financial system is vulnerable to failure. In contrast, crypto, with its DLT, peer-to-peer math-guided issuance, and clearing, is considered a viable alternative.
These are all the elements that started with Bitcoin and evolved into Ethereum.
DeFi is essentially crypto’s financial sandbox ecosystem. This is where you participate in a developing parallel financial system. The place where projects are floated, tested and traded.
The vision of DeFi is evolving daily.
But the basic principles of…
76,000 transaction messages per second.
That translates into $11.3 trillion in total dollar volume across 61 million merchants in more than two hundred countries.
That’s what VISA brings to crypto by allowing settlement in the USDC stablecoin.
This is what Geoffrey Moore’s crossing the chasm looks like. Crypto is moving from the earliest enthusiasts to the mainstream.
But to do this, a lot of groundwork had to be done.