A limit order allows traders to purchase or sell a cryptocurrency at a specified price or better. That way you can automate the buying and selling without having to constantly watch price charts. A limit order will only be executed at the limit price, or a lower price when buying. On the flip side, a … Read more
The Blockchain trilemma states that public blockchains sacrifice either decentralization security or scalability in their infrastructure and concludes that a blockchain system can achieve only 2 of the 3 features listed above while sacrificing the 3rd feature e.g. decentralisation and security but sacrifice scalability. A typical example that supports this postulate is bitcoin. While its … Read more
Loan collateralization occurs when crypto borrowers use their crypto tokens to secure a loan. This happens when a crypto investor deposits tokens from their wallet into a loan smart contract. In return the loan smart contract creates or “mints” a stablecoin typically. This stablecoin is the loan. The token that was deposited is the collateral.
A rebase token is a kind of asset that automatically regulates its circulating supply in reaction to crypto price fluctuations. It uses a rebasing mechanism that adjusts the circulating supply of tokens which are increased or decreased based on price changes. Rebase tokens are highly risky investments and investors should have a proper understanding of the project before investing.
Value averaging (VA) aims to invest more when the crypto price falls and less when the crypto price rises. Under the VA strategy, an investor determines the target growth rate of his bag. For example if an investor wants to grow their bag to 12 ETH by the end of the year, they would need … Read more
Dollar-cost averaging (DCA) is a strategy where an investor invests a total sum of money in small increments over time instead of all at once. For example, if your yearly goal is to invest $1,500 into Bitcoin, you would contribute around $125 a month throughout the year. The goal is to take advantage of market … Read more