What is a limit order?

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

What is the blockchain trilemma?

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

What is loan collateralization in crypto?

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.

What is a rebase token?

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.