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A Guide to Cryptocurrency Fundamental Analysis

A Guide to Cryptocurrency Fundamental Analysis

Crypto fundamental analysis involves taking a deep dive into the available information about a financial asset. For instance, you might look at its use cases, the number of people using it, or the team behind the project.

Your goal is to reach a conclusion on whether the asset is overvalued or undervalued. At that stage, you can use your insights to inform your trading positions.

Introduction

Trading assets as volatile as cryptocurrencies requires some skill. Selecting a strategy, understanding the vast world of trading, and mastering technical and fundamental analysis are practices that come with a learning curve.

When it comes to technical analysis, some expertise can be inherited from the legacy financial markets. Many crypto traders use the same technical indicators seen in Forex, stock, and commodities trading. Tools like RSI, MACD, and Bollinger Bands seek to predict market behavior irrespective of the asset being traded. As such, these technical analysis tools are also extremely popular in the cryptocurrency space.

In cryptocurrency fundamental analysis, though the approach is similar to that used in legacy markets, you can’t really use tried-and-tested tools to assess crypto assets. To conduct proper FA in cryptocurrencies, we need to understand where they derive value from.

In this article, we will attempt to identify metrics that can be used to craft your own indicators.

What is fundamental analysis (FA)?

Fundamental analysis (FA) is an approach used by investors to establish the "intrinsic value" of an asset or business. By looking at a number of internal and external factors, their main goal is to determine whether said asset or business is overvalued or undervalued. They can then leverage that information to strategically enter or exit positions.

Technical analysis also yields valuable trading data, but it results in different insights. TA users believe they can predict future price movements based on the past performance of assets. This is achieved by identifying candlestick patterns and studying essential indicators.

Traditional fundamental analysts generally look to business metrics to figure out what they view to be its real value. Indicators used include earnings per share (how much profit a company makes for each outstanding share) or the price-to-book ratio (how investors value the company versus its book value). They might do this for several businesses within a niche, for example, to figure out how their prospective investment stands in relation to others.

For a more comprehensive introduction to fundamental analysis, see What is Fundamental Analysis?.

The problem with crypto fundamental analysis

Cryptocurrency networks can't really be assessed through the same lens as traditional businesses. If anything, the more decentralized offerings like Bitcoin (BTC) are closer to commodities. But even with the more centralized cryptocurrencies(such as those issued by organizations), traditional FA indicators can't tell us much.

So, we need to turn our attention to different frameworks. The first step in that process is to identify strong metrics. By strong, we mean ones that can't easily be gamed. Twitter followers or Telegram/Reddit users are probably not good metrics, for example, as it's easy to create fake accounts or buy engagement on social media.

It's important to note that there's no single measure that can give us a full picture of the network we're assessing. We could look at the number of active addresses on a blockchain and see that it has been sharply increasing. But that doesn't tell us much by itself. For all we know, that could be a standalone actor transferring money back and forth to themselves with new addresses each time.

In the following sections, we'll take a look at three categories of crypto FA metrics: on-chain metrics, project metrics, and financial metrics. This list will be non-exhaustive, but it should provide us with a decent foundation for the subsequent creation of indicators.

On-chain metrics

On-chain metrics illustration

On-chain metrics are those that can be observed by looking at data provided by the blockchain. We could do this ourselves by running a node for the desired network and then exporting the data, but that can be time-consuming and expensive. Particularly if we're only considering the investment, and don't want to waste time or resources on the endeavor.

A more straightforward solution would be to pull the information from websites or APIs specifically designed for the purpose of informing investment decisions. For example, CoinMarketCap's on-chain analysis of Bitcoin gives us a myriad of information. Additional sources include Coinmetrics' Data Charts or Binance Research's project reports.

Transaction count

Transaction count is a good measure of activity taking place on a network. By plotting the number for set periods (or by using moving averages), we can see how activity changes over time.

Note that this metric should be treated with caution. As with active addresses, we can't be sure that there isn't just one party transferring funds between their own wallets to inflate the on-chain activity.

Transaction value

Not to be confused with the transaction count, the transaction value tells us how much value has been transacted within a period. For instance, if a total of ten Ethereum transactions, worth $50 each, were sent on the same day, we would say that the daily transaction volume was $500. We could measure this in a fiat currency like USD, or we could measure it in the protocol's native unit (ETH).

Active addresses

Active addresses are the blockchain addresses that are active in a given period. Approaches to calculating this vary, but a popular method is to count both the sender and receivers of each transaction over set periods (e.g., days, weeks, or months). Some also examine the number of unique addresses cumulatively, meaning that they track the total over time.

Fees paid

Perhaps more important for some crypto assets than others, the fees paid can tell us about the demand for block space. We could think of them as bids at an auction: users compete with each other to have their transactions included in a timely manner. Those bidding higher will see their transactions confirmed (mined) sooner, while those bidding lower will need to wait longer.

For cryptocurrencies with decreasing emission schedules, this is an interesting metric to study. The major Proof of Work (PoW) blockchains provide a block reward. In some, it's made up of a block subsidy and transaction fees. The block subsidy decreases periodically (in events such as the Bitcoin halving).

Because the cost to mine tends to increase over time, but the block subsidy is slowly reduced, it makes sense that transaction fees would need to rise. Otherwise, miners would operate at a loss and begin to drop off the network. This has a knock-on effect on the security of the chain.

Hash rate and the amount staked

Blockchains today use many different consensus algorithms, each with its own mechanisms. Given that these play such an integral role in securing the network, diving into the data surrounding them could prove valuable for fundamental analysis.

Hash rate is often used as a measure of network health in Proof of Work cryptocurrencies. The higher the hash rate, the more difficult it is to successfully mount a 51% attack. But an increase over time can also point to growing interest in mining, likely as a result of cheap overheads and higher profits. Conversely, a decrease in hash rate points to miners going offline ("miner capitulation") as it's no longer profitable for them to secure the network.

Factors that can influence the overall costs of mining include the current price of the asset, the number of transactions processed, and fees being paid, to name a few. Of course, the direct costs of mining (electricity, computing power) are also important considerations.

Staking (in Proof of Stake, for example) is another related concept with similar game theory to PoW mining. Insofar as the mechanisms, though, it works differently. The basic idea is that users stake their own holdings to participate in block validation. As such, we could look to the amount staked at a given time to gauge interest (or lack of it).

Project metrics

Project metrics illustration

Where on-chain metrics are concerned with observable blockchain data, project metrics involve a qualitative approach, which looks to factors like the performance of the team (if any exists), the whitepaper, and the upcoming roadmap.

The whitepaper

It's highly recommended that you read the whitepaper of any project before investing. This is a technical document that gives us an overview of the cryptocurrency project. A good whitepaper should define the goals of the network, and ideally give us an insight into:

  • The technology used (is it open source?)
  • The use case(s) it aims to cater to
  • The roadmap for upgrades and new features
  • The supply and distribution scheme for coins or tokens

It's wise to cross-reference this information with discussions of the project. What are other people saying about it? Are there any red flags raised? Do the goals seem realistic?

The team

If there's a specific team behind the cryptocurrency network, its members' track records can reveal whether the team has the required skills to bring the project to fruition. Have members undertaken successful ventures in this industry previously? Is their expertise sufficient to reach their projected milestones? Have they been involved in any questionable projects or scams?

If there is no team, what does the developer community look like? If the project has a public GitHub, check to see how many contributors there are and how much activity there is. A coin whose development has been constant may be more appealing than one whose repository hasn't been updated in two years.

Competitors

A strong whitepaper should give us an idea of the use case the crypto asset is targeting. At this stage, it's important to identify the projects it's competing with, as well as the legacy infrastructure it seeks to replace.

Ideally, fundamental analysis of these should be just as rigorous. An asset may look appealing by itself, but the same indicators applied to similar crypto assets could reveal ours to be weaker than the others.

Tokenomics and initial distribution

Some projects create tokens as a solution looking for a problem. Not to say that the project itself isn't viable, but its associated token may not be particularly useful in this context. As such, it's important to determine whether the token has real utility. And, by extension, whether that utility is something that the wider market will recognize, and how much it would likely value the utility at.

Another important factor to consider on this front is how the funds were initially distributed. Was it via an ICO or IEO, or could users earn it by mining? In the case of the former, the whitepaper should outline how much is kept for the founders and team, and how much will be available to investors. In the case of the latter, we could look to evidence of the asset's creator premining (mining on the network before it's announced).

Focusing on the distribution might give us an idea of any risk that exists. For instance, if the vast majority of the supply was owned by only a few parties, we might reach the conclusion that this is a risky investment, as those parties could eventually manipulate the market.

Financial metrics

Financial metrics illustration

Information about how the asset currently trades, what it traded at previously, liquidity, etc. can all come in handy in fundamental analysis. However, other interesting metrics that might fall under this category are those that concern the economics and incentives of the crypto asset's protocol.

Market capitalization

Market capitalization (or network value) is calculated by multiplying the circulating supply with the current price. Essentially, it represents the hypothetical cost to buy every single available unit of the crypto asset (assuming no slippage).

By itself, market capitalization can be misleading. In theory, it would be easy to issue a useless token with a supply of ten million units. If just one of those tokens was traded for $1, then the market cap would be $10 million. This valuation is obviously distorted – without a strong value proposition, it's unlikely that the wider market would be interested in the token.

On a related note, it's impossible to truly determine how many units are in circulation for a given cryptocurrency or token. Coins can be burned, keys can be lost, and funds can simply be forgotten about. What we see instead are approximations that attempt to filter out coins that are no longer in circulation.

Nonetheless, market capitalization is used extensively to figure out the growth potential of networks. Some crypto investors view "small-cap" coins to be more likely to grow compared to "large-cap" ones. Others believe large-caps to have stronger network effects, and, therefore, stand a better chance than unestablished small-caps.

Liquidity and volume

Liquidity is a measure of how easily an asset can be bought or sold. A liquid asset is one that we'd have no problem selling at its trading price. A related concept is that of a liquid market, which is a competitive market flooded with asks and bids (leading to a tighter bid-ask spread).

A problem we might encounter with an illiquid market is that we're unable to sell our assets at a "fair" price. This tells us there are no buyers willing to make the trade, leaving us with two options: lower the ask or wait for liquidity to increase.

Trading volume is an indicator that can help us determine liquidity. It can be measured in a few ways and serves to show how much value has been traded within a given time period. Typically, charts display the daily trading volume (denominated in native units or in dollars).

Being familiar with liquidity can be helpful in the context of fundamental analysis. Ultimately, it acts as an indicator of the market's interest in a prospective investment.

Supply mechanisms

To some, the supply mechanisms of a coin or token are some of the most interesting properties from an investment standpoint. Indeed, models like the Stock-to-Flow (S2F) ratio are growing in popularity amongst Bitcoin proponents.

Maximum supply, circulating supply, and rate of inflation can inform decisions. Some coins reduce the number of new units they produce over time, making them attractive to investors that believe the demand for new units will outstrip their availability.

On the other hand, different investors might see a rigidly enforced cap as damaging in the long run. Such concerns may be that it disincentivizes the use of the coins/tokens as users opt instead to hoard them. Another criticism is that it disproportionately rewards early adopters, whereas a steady inflationary policy would be fairer for newcomers.

Fundamental analysis indicators, metrics, and tools

We’ve already defined metrics as quantitative and sometimes qualitative data used in basic analysis. But on their own, these metrics often don’t tell the whole story. To get deeper insights into a coin’s fundamentals, we should also take a look at indicators.

An indicator often combines multiple metrics using statistical formulas to create easier to analyze relationships. However, there is still a lot of overlap between a metric and an indicator, making the definition quite loose.

While the number of active wallets is valuable, we can combine it with other data to gain deeper insights. You could take this as a percentage of total wallets or divide a coin’s market cap by the number of active wallets. This calculation would give you an average amount held per active wallet. Both of these would allow you to draw conclusions on the network’s activity and users’ confidence in holding the asset. We’ll dive into this deeper in the next section.

Fundamental analysis tools make gathering all these metrics and indicators easier. While you can look at the raw data on blockchain explorers, an aggregator or dashboard is a more efficient use of your time. Some tools allow you to create your own indicators with your chosen metrics.

Combining metrics and creating FA indicators

Now that we're familiar with the difference between metrics and indicators, let's talk about how we combine metrics to better understand the financial health of the assets we're dealing with. Why do this? Well, as we've outlined in the previous sections, there are shortcomings with every metric. Furthermore, if you're just looking at a collection of numbers for each cryptocurrency project, you're overlooking a lot of crucial information. Consider the following scenario:


Coin A

Coin B

Market Capitalization

$100,000,000

$5,000,000

Transaction count (6mo)

20,000,000

40,000,000

Avg. transaction value (6mo)

$50

$100

Active addresses (6mo)

30,000

2,000

In isolation, active addresses tell us nothing of substance if we compare the two offerings. We could certainly say that Coin A has had more active addresses in the past six months than Coin B, but that's far from a comprehensive analysis. How does this figure relate to the market cap? Or the transaction count?

A more prudent approach would be to create some kind of ratio that we could apply to some of Coin A's statistics, then compare it with that same ratio used on Coin B's. That way, we're not blindly comparing each coin's individual metrics. Instead, we can create a standard for valuing coins independently.

For example, we might decide that the relationship between market cap and transaction count is a lot more telling than market cap alone. In which case, we might divide the market cap by the transaction count. For Coin A, we end up with a ratio of 5, and for Coin B our ratio is 0.125.

Going on this ratio alone, we might think that Coin B is more intrinsically valuable than Coin A because the number calculated is lower. What that means is that there is a much higher amount of transactions in relation to the market cap in Coin B. Therefore, it could seem that Coin B has more utility, or that Coin A is being overvalued.

Neither of these observations should be construed as investment advice – this is simply an example of how we might paint a small piece of the bigger picture. Without understanding the projects' goals and the coins' function, you can't determine whether the comparatively smaller transaction number on Coin A is a positive or negative development.

A similar ratio that has seen some popularity in the cryptocurrency markets is the NVT ratio. Coined by analyst Willy Woo, the network value-to-transaction ratio has been called the "price-to-earnings ratio of the crypto world." In simple terms, it involves dividing the market capitalization (or network value) by the amount transacted (typically on a daily chart).

We're only scratching the surface on the kinds of indicators that can be used. Fundamental analysis is all about developing a system that can be used to value projects across the board. The more quality research we do, the more data we have to work with.

Key FA indicators and metrics

There are a huge number of indicators and metrics available to choose from. For a beginner, start with some of the most popular ones first. Each indicator only tells part of the story, so use a variety of them in your analysis.

Network Value to Transactions Ratio (NVT)

If you’ve heard of the price-to-earnings ratio used to analyze stocks, then the network transaction value indicator (daily) provides a similar analysis. It’s calculated simply by dividing a coin’s market capitalization by the daily transaction volume.

We use the daily transaction volume as a stand-in for the underlying, inherent value of a coin. This concept works on the assumption that the more volume moving around the system, the more value the project has. If a coin’s market cap increases while daily transaction volume lags, the market could enter bubble territory. Prices are rising without there being a matched increase in the underlying value. In the opposite case, a coin or token’s price may stay stable while daily transaction volume increases. This scenario could suggest a possible buying opportunity.

The higher the value of the ratio, the more likely a bubble will occur. This point is usually seen when the NVT ratio is above 90-95. A decreasing ratio indicates that the crypto is becoming less overvalued.

Market Value to Realized Value Ratio (MVRV)

Before we dive into this statistic, we need to understand what realized value means for a crypto asset. Market value, otherwise known as market cap, is simply the total supply of coins multiplied by the current market price. Realized value, on the other hand, discounts for coins lost in inaccessible wallets.

Coins sat in wallets are instead valued using the market price at the time of their last movement. For example, a Bitcoin lost in a wallet since February 2016 will only be valued at around $400.

To get our MVRV indicator, we simply divide the market cap by the realized cap. If the market cap is much higher than the realized cap, we’ll end up with a relatively high ratio. A ratio over 3.7 suggests a sell-off may occur as traders take their profits due to the coin’s overvaluation.

This number signifies that the coin may currently be overvalued. You can see this before two large Bitcoin sell-offs in 2014 (MRVR of roughly 6) and 2018 (MRVR of approximately 5). If the value is too low and under 1, the market is undervalued. This situation would be a good point to buy as buying pressure increases and drives up the price.

MVRV

Stock-to-flow model

The stock-to-flow indicator is a popular indicator of the price of a cryptocurrency, typically with a limited supply. The model looks at each cryptocurrency as a fixed, scarce resource similar to precious metals or stones. Because there is a known limited supply without new sources to be found, investors use these assets as a store of value.

We calculate the indicator by taking the total circulating global supply and dividing it by the amount produced per year. In Bitcoin, you can do this with easily found circulation figures and data on newly mined coins. Decreasing returns from mining leads to a higher ratio reflecting its scarcity, making the asset more valuable. As Bitcoin goes through a reward halving event periodically, we can see this reflected in the flow of new coins into the market.

Model Stock-to-flow

As you can see, stock-to-flow has been a reasonably good indicator of the price of Bitcoin. Bitcoin’s price has been superimposed on the 365 day average of the ratio and shows a good match. The model does have some drawbacks, however.

For example, gold currently has a stock-to-flow ratio of around 60, meaning it would take 60 years to mine the current supply of gold at the current flow. Bitcoin will roughly be on track to have a ratio of 1600 in around 20 years, setting price predictions and a market cap higher than the world’s current wealth.

Stock-to-flow models also struggle when deflation happens, as this would suggest a minus price. As people lose the keys to their wallets and no more bitcoins are produced, we would see a negative ratio. We would see the stock-to-flow ratio flow go towards infinity and then become minus if we displayed this graphically.

Examples of Fundamental Analysis tools

Baserank

Baserank is a research platform for crypto assets that aggregates information and reviews from analysts and investors. The crypto receives an overall score from 0 to 100 after taking an average of each review’s score. While there are some premium reviews for subscribers, free users can still see a comprehensive overview of reviews broken down into sections, including team, utility, and investment risk. If you’re short of time and need a rapid overview of a project or coin, an aggregator like Baserank is suitable for the task. You should always, however, dive deeper into projects you’re interested in before investing.

Baserank

Crypto Fees

As you might have guessed from the name, this tool shows you each network’s fees for the past 24 hours or seven days. It’s an easy metric to use when analyzing the traffic and usage of a blockchain network. Networks with high fees are typically experiencing great demand.

However, you shouldn’t just take this metric at face value. Some blockchains are built with low fees in mind, making a comparison with other networks challenging. In these cases, it’s best to look at the figure in tandem with the transaction amount or another metric. For example, large market cap coins such as Dogecoin or Cardano are low in the overall charts due to their cheap transaction fees.

Crypto Fees

Glassnode Studio

Glassnode Studio offers a dashboard displaying a wide range of on-chain metrics and data. Like most tools on offer, it is subscription-based. However, the amount of free on-chain data it offers is suitable for amateur investors and quite in-depth. It’s much easier to find all the information in one place rather than gather it yourself using blockchain explorers. Glassnode’s main strength is the vast number of metric categories and subcategories you can browse. However, if you’re interested in Binance Smart Chain projects, you’re very limited here.

For anyone who wants to combine their metrics with technical analysis, Glassnode Studio also has built-in TradingView with all its charting tools. It’s common for investors and traders to combine multiple types of analysis when making decisions. Being able to do this all in one place is a plus.

Glassnode Studio

Closing thoughts

Done correctly, fundamental analysis can provide invaluable insights into cryptocurrencies in a way that technical analysis cannot. Being able to separate the market price from the "true" value of a network is an excellent skill to have when trading. Of course, there are things that TA can tell us that can’t be predicted with FA. That’s why many traders use a combination of both these days.

As with many strategies, there's no one-size-fits-all FA playbook. Hopefully, this article will have helped you understand some of the factors to consider before entering or exiting positions with crypto assets.

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Who Is Satoshi Nakamoto?

Who Is Satoshi Nakamoto?
Satoshi Nakamoto is the pseudonym behind the development of Bitcoin and the authorship of the original Bitcoin whitepaper. The question “who is Satoshi Nakamoto?” has led to speculation of their true identity as well as people falsely claiming they are Satoshi Nakamoto. The creator of Bitcoin has been clouded in mystery for more than a decade. However, it’s clear that Satoshi still owns bitcoins since their public keys were traced from the genesis block, which Satoshi mined.
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What Is Cryptocurrency Mining?

What Is Cryptocurrency Mining?
Cryptocurrency mining refers to the process of verifying and validating blockchain transactions. It’s also the process that creates new units of cryptocurrencies. The work done by miners requires intensive computational resources, but it’s what keeps a blockchain network secure. Honest and successful miners are rewarded for their work with newly created cryptocurrencies plus transaction fees.
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A Quick Guide to Binance Dual Investment

A Quick Guide to Binance Dual Investment
We all know that to get a return on an investment, we need to buy low and sell high. Investing in cryptocurrency is no different. Binance Dual Investment provides a great way to seize Buy Low and Sell High opportunities while also providing you with additional returns. Let’s dive into how it works and exactly how you can get started.
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Hybrid PoW/PoS Consensus Explained

Hybrid PoW/PoS Consensus Explained
A blockchain’s consensus mechanism serves to ensure that there is agreement among participants on the current state of the blockchain. The consensus mechanism determines who is able to add new blocks of transactions, and one of its primary aims is to ensure that the chain is not re-written.
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Your Guide to Binance Earn

Your Guide to Binance Earn
Not interested in trading but still looking to increase your crypto holdings? Is the 0.05% interest your local bank offers on your savings account not exciting enough? Well, you’ll find alternative choices within the Binance Earn product suite. Binance Earn is your crypto savings account. Here, you’ll find a great variety of options for earning passive income with your crypto holdings.
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Delegated Proof of Stake Explained

Delegated Proof of Stake Explained
The Delegated Proof of Stake (DPoS) consensus algorithm is considered by many as a more efficient and democratic version of the preceding PoS mechanism. Both PoS and DPoS are used as an alternative to the Proof of Work consensus algorithm, since a PoW system requires, by design, lots of external resources. The Proof of Work algorithm makes use of a large amount of computational work in order to secure an immutable, decentralized and transparent distributed ledger. Contrarily, PoS and DPoS require fewer resources and are, by design, more sustainable and eco-friendly. To understand how Delegated Proof of Stake works, one must first grasp the basics of the Proof of Work and Proof of Stake algorithms that preceded it.
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Proof of Burn Explained

Proof of Burn Explained
While most blockchain systems either make use of a Proof of Work (PoW) or a Proof of Stake (PoS) consensus algorithm, the Proof of Burn (PoB) is being tested as a possible alternative to those.
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Proof of Authority Explained

Proof of Authority Explained
The cryptocurrency space has changed a lot since the first blockchain transaction on the Bitcoin network. Along with the well-known Proof of Work and Proof of Stake algorithms, other consensus mechanisms were proposed, with alternative methods for reaching consensus within a blockchain system.
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What Is a DoS Attack?

What Is a DoS Attack?
In short, a DoS attack (or Denial-of-Service attack) is a method used to disrupt legitimate users' access to a target network or web resource. Typically, this is accomplished by overloading the target (often a web server) with a massive amount of traffic - or by sending malicious requests that cause the target resource to malfunction or crash entirely.
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What Is a 51% Attack?

What Is a 51% Attack?
Before diving into the 51% attack, it is crucial to have a good understanding of mining and blockchain-based systems. One of the key strengths of Bitcoin and its underlying blockchain technology is the distributed nature of building and verifying data. The decentralized work of the nodes ensures that the protocol rules are being followed and that all network participants agree on the current state of the blockchain. This means that the majority of nodes need to regularly reach consensus in regards to the process of mining, to the version of the software being used, to the validity of transactions, and so forth.
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Delayed Proof of Work Explained

Delayed Proof of Work Explained
Delayed Proof of Work (dPoW) is a security mechanism designed by the Komodo project. It is basically a modified version of the Proof of Work (PoW) consensus algorithm that makes use of Bitcoin blockchain’s hashpower as a way to enhance network security. By using dPoW, Komodo developers are able to secure not only their own network but also any third-party chain that ends up joining the Komodo ecosystem in the future. In fact, dPoW can be implemented for any project that develops an independent blockchain using a UTXO model.
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What Is a Blockchain Consensus Algorithm?

What Is a Blockchain Consensus Algorithm?
A consensus algorithm is a mechanism that allows users or machines to coordinate in a distributed setting. It needs to ensure that all agents in the system can agree on a single source of truth, even if some agents fail. In other words, the system must be fault-tolerant (see also - Byzantine Fault Tolerance Explained). In a centralized setup, a single entity has power over the system. In most cases, they can make changes as they please – there isn’t some complex governance system for reaching consensus amongst many administrators.
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5 BSC Metaverse Projects You Should Know

5 BSC Metaverse Projects You Should Know
The metaverse is an online, immersive space where users can work, play, and socialize in a 3D environment. The metaverse is still developing, but blockchain technology already plays a significant role. BNB Smart Chain (BSC) is the home to many metaverse projects experimenting with play-to-earn blockchain games and community sandboxes.decentral.games lets users play and run their own casino through governance mechanisms. Cyber Dragon and Alien Worlds both provide an RPG-like experience where players have their own character, missions, and loot. TopGoal is also gaming-related but focuses on the collectability of Non-Fungible Tokens (NFTs) to represent sports stars like trading cards.
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A Beginner's Guide to Earning Passive Income With Crypto

A Beginner's Guide to Earning Passive Income With Crypto
Trading or investing in projects is one way to make money in the blockchain industry. However, that typically requires detailed research and a substantial investment of time – but it still won’t guarantee a reliable source of income. Even the best investors can experience prolonged periods of loss, and one of the ways to survive them is to have alternative sources of income.
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What Is Crypto Lending and How Does It Work?

What Is Crypto Lending and How Does It Work?
Crypto lending lets users borrow and lend cryptocurrencies for a fee or interest. You can instantly get a loan and start investing just by providing some collateral. This could be through a DeFi lending DApp or a cryptocurrency exchange. When your collateral falls below a certain value, you will need to top it up to the required level to avoid liquidation. When you return your loan plus a fee, your capital is unlocked.
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A Beginner's Guide to Decentralized Finance (DeFi)

A Beginner's Guide to Decentralized Finance (DeFi)
DeFi lets users access crypto financial services with just no more than a wallet with some crypto. A range of DApps facilitates lending, liquidity provision, swaps, staking, and more across many blockchains. While Ethereum was DeFi's original home, most blockchains with smart contract capabilities now host DeFi DApps. Smart contracts are essential to the services DeFi offers, which include staking, investing, lending, harvesting, and more.
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5 NFT Projects You Should Know

5 NFT Projects You Should Know
The interest in NFTs has exploded. While many NFT projects had a small community of enthusiasts since their early existence, 2021 has brought forth a bit of an NFT bubble. Many thought DeFi would bring mainstream adoption to the crypto space. However, it seems like the value proposition of NFTs is much easier to grasp for people not involved with blockchain technology. As such, some NFT projects have even entered the mainstream. But which ones are they?
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Top 3 NFT Projects on Binance Smart Chain

Top 3 NFT Projects on Binance Smart Chain
The demand for non-fungible tokens (NFTs) keeps growing on Binance Smart Chain (BSC). The blockchain’s speed and low transaction fees make it very attractive for both users and developers. On BSC, Battle Pets, PancakeSwap, and BakerySwap have all pushed further the limits of what an NFT can do. Both Battle Pets and BakerySwap combine collectibles with Decentralized Finance (DeFi) staking for their tokens. PancakeSwap is also experimenting with NFTs that merge collectability, financial utility, and gamification.
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Top 7 NFT Use Cases

Top 7 NFT Use Cases
Massive interest in non-fungible tokens has led to a boom in crypto-collectibles and NFT art. These are two of the most prominent use cases in the DeFi ecosystem, but they aren’t the only applications. Scarcity and uniqueness make non-fungible tokens a good match for real-world assets, logistics, music royalties, and more. As NFTs mature, we can expect to see further adoption of more experimental use cases.
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What Are NFT Games and How Do They Work?

What Are NFT Games and How Do They Work?
NFTs are unique digital collectibles on the blockchain. This feature makes them suitable to use in games as representations as characters, consumables, and other tradeable items. NFT games have become popular in the Game-fi world as a way to earn income. You can sell your in-game NFTs to other collectors and players and even earn tokens with play-to-earn models.
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What Is the Metaverse?

What Is the Metaverse?
The metaverse is a concept of a persistent, online, 3D universe that combines multiple different virtual spaces. You can think of it as a future iteration of the internet. The metaverse will allow users to work, meet, game, and socialize together in these 3D spaces.
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What Are CryptoPunks?

What Are CryptoPunks?
CryptoPunks are collectible pieces of crypto art, represented by NFTs on the Ethereum blockchain. There are 10,000 small, 8-bit-style punks, all with unique features. As one of the first famous NFT projects, they inspired a lot of crypto artists and even the development of the ERC-721 token standard for digital collectibles. The project became more popular in 2021 after some CryptoPunks were sold for millions of dollars, making them some of the most expensive NFTs.
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What Is an Automated Market Maker (AMM)?

What Is an Automated Market Maker (AMM)?
You could think of an automated market maker as a robot that’s always willing to quote you a price between two assets. Some use a simple formula like Uniswap, while Curve, Balancer and others use more complicated ones.
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A Guide to Crypto Collectibles and Non-fungible Tokens (NFTs)

A Guide to Crypto Collectibles and Non-fungible Tokens (NFTs)
The creation of Bitcoin introduced the concept of trustless, digital scarcity. Before it, the cost of digitally copying something was next to nothing. With the advent of blockchain technology, programmable digital scarcity has become possible – letting us map the digital world to the real world. Non-fungible tokens (NFTs), often referred to as crypto collectibles, expand this idea. Unlike cryptocurrencies, where each token is equal, non-fungible tokens are unique and limited in quantity.
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Decentralized Autonomous Organizations (DAOs) Explained

Decentralized Autonomous Organizations (DAOs) Explained
Blockchains are already radically transforming our financial system. However, properties such as trustlessness and immutability aren’t only useful in monetary applications. Another potential candidate ripe for disruption by this technology is governance. Blockchains could enable entirely new types of organizations that can run autonomously without the need for coordination by a central entity. This article will give an introduction to what these organizations might look like.
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A Beginner's Introduction to Cryptoeconomics

A Beginner's Introduction to Cryptoeconomics
In simple terms, cryptoeconomics provides a way to coordinate the behavior of network participants by combining cryptography with economics. More specifically, cryptoeconomics is an area of computer science that attempts to solve participant coordination problems in digital ecosystems through cryptography and economic incentives.
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Pyramid and Ponzi Schemes

Pyramid and Ponzi Schemes
Most individuals that invest in Bitcoin – or that participate in Initial Coin Offering (ICO) events – are usually concerned about two things. First, the Return of Investment (ROI), which represents the profits they will eventually make from the initial investment. Then, there is a second concern, which is related to the amount of risk involved with the investment. When the risks are too high, investors are more likely to lose their initial investment (in parts or completely), which would result in a negative ROI.
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What is Public Key Cryptography?

What is Public Key Cryptography?
Public key cryptography (PKC), also known as asymmetric cryptography, is a framework that uses both a private and a public key, as opposed to the single key used in symmetric cryptography. The use of key pairs gives PKC a unique set of characteristics and capabilities that can be utilized to solve challenges inherent in other cryptographic techniques. This form of cryptography has become an important element of modern computer security, as well as a critical component of the growing cryptocurrency ecosystem.
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History of Cryptography

History of Cryptography
Cryptography, the science of writing codes and ciphers for secure communication, is one of the most important elements that goes into making modern cryptocurrencies and blockchains possible. The cryptographic techniques used today, however, are the result of an incredibly long history of development. Since ancient times, people have used cryptography to transmit information in a secure manner. Following is the fascinating history of cryptography that has led up to the advanced and sophisticated methods used for modern digital encryption.
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What Is Axie Infinity (AXS)?

What Is Axie Infinity (AXS)?
It’s 2021, and that means you can earn money by playing games and breeding virtual pets. An easy way to think of Axie Infinity is to imagine a blockchain game that combines Pokémon, CryptoKitties, and card game elements.
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Is Bitcoin a Store of Value?

When you think of a safe-haven asset, precious metals like gold or silver probably come to mind. They’re investments that individuals flock to as hedges against turmoil in traditional markets. The debate over whether Bitcoin follows in the footsteps of these assets rages on. In this article, we’ll look at some of the main arguments for and against Bitcoin being a store of value.
When you think of a safe-haven asset, precious metals like gold or silver probably come to mind. They’re investments that individuals flock to as hedges against turmoil in traditional markets. The debate over whether Bitcoin follows in the footsteps of these assets rages on. In this article, we’ll look at some of the main arguments for and against Bitcoin being a store of value.
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What Is VeChain (VET)?

What Is VeChain (VET)?
VeChain provides blockchain solutions for businesses around the globe. With plenty of existing industry blockchain applications from supply chain management to anti-counterfeiting and carbon credits, their systems have been proven in the real world. VET is the coin that underpins VeChain, where VTHO is the gas token that’s used for transactions on the VeChainThor blockchain (like Ethereum’s gas).
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Приготовьтесь! Биткойн будут сливать, но это не точно

Приготовьтесь! Биткойн будут сливать, но это не точно
Только что в Twitter наткнулся на пост от Jacob Canfield, якобы есть инсайдерская информация, о том что Bitcoin планируют сливать, дабы выбить некоторых конкурентов, потом обратно откупить, подняв стоимость до $70к.
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More about the Crypto Fans club

More about the Crypto Fans club
Now I will tell you what our club is, how it works and what advantages it has. A minimum of water, a maximum of specifics. The club is a kind of trust fund, which consists of a team of Asset Managers, on the one hand, who invest in the crypto market, and Investors, on the other. I will not describe in this article what cryptocurrency is, why it is growing, and what are its advantages, this topic is worthy of a separate article. You can google all this, or go to coinmarketcap.com and see how the value of a particular cryptocurrency has grown at least this year, and doubts about investing in cryptocurrency should disappear.
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What Is The Sandbox (SAND)?

What Is The Sandbox (SAND)?
The Sandbox is a play-to-earn game that combines blockchain technology, DeFi, and NFTs in a 3D metaverse. Its virtual world allows players to create and customize their games and digital assets with free design tools. The virtual goods created can then be monetized as NFTs and sold for SAND tokens on The Sandbox Marketplace.
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What Is Tether (USDT)?

What Is Tether (USDT)?
Tether (USDT) is one of the most popular stablecoins out there. It was designed to hold a one-to-one value with the US dollar. The coin exists on many different blockchains and has experienced rising trading volumes and improved liquidity over the past few years.
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What Is Solana (SOL)?

What Is Solana (SOL)?
Solana is a blockchain network focused on fast transactions and high throughput. It uses a unique method of ordering transactions to improve its speed. Users can pay their transaction fees and interact with smart contracts with SOL, the network’s native cryptocurrency.
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What Is Polkadot (DOT)?

What Is Polkadot (DOT)?
Polkadot positions itself as the next-generation blockchain protocol, capable of connecting multiple specialized chains into one universal network. With a strong focus on building infrastructure for Web 3.0 – and founded by the Web3 Foundation – Polkadot aims to disrupt Internet monopolies and empower individual users.
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What Is Harmony (ONE)?

What Is Harmony (ONE)?
Harmony is a layer-1 blockchain using sharding and Effective Proof of Stake to achieve scalability, security, and decentralization. The network was launched in 2019 and features trustless cross-chain bridges and four shards, which process transactions in parallel. Effective Proof of Stake encourages decentralization of validators, and sharding shares the network's load among validators, delegators, and users.
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What Is Filecoin (FIL)?

What Is Filecoin (FIL)?
FFilecoin is a decentralized, peer-to-peer digital storage marketplace using blockchain technology. It’s built on top of InterPlanetary File System (IPFS) and allows users to rent unused hard disk space and earn FIL tokens in return. Let’s see how Filecoin aims to shake up the online storage space.
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What Is Decentraland (MANA)?

What Is Decentraland (MANA)?
Decentraland is a virtual world and community based on blockchain technology. Users develop and own plots of land, artwork, and Non-Fungible Tokens (NFT). Members also participate in the platform’s Decentralized Autonomous Organization (DAO).
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What Is Ethereum 2.0 And Why Does It Matter?

What Is Ethereum 2.0 And Why Does It Matter?
Ethereum 2.0 is a long-awaited upgrade to the Ethereum (ETH) network that’s promised significant improvements to the functionality and experience of the network as a whole. Some of the more notable upgrades include a shift to Proof of Stake (PoS), shard chains, and a new blockchain at the core called the beacon chain. All of this and more is expected to be phased in through a carefully planned roadmap.
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What Is BUSD?

What Is BUSD?
BUSD is a regulated, fiat-backed stablecoin pegged to the U.S. dollar. For every unit of BUSD, there is one U.S. dollar held in reserve. In other words, the supply of BUSD is pegged to the U.S. dollar at a 1:1 ratio. Holders can swap their tokens for fiat and vice versa. Paxos, the token’s issuer, releases monthly attestations of BUSD’s reserves.
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What Is Avalanche (AVAX)?

What Is Avalanche (AVAX)?
Avalanche attempts to improve scalability without compromising speed or decentralization. Three blockchains make up its core platform - the Exchange Chain (X-Chain), Contract Chain (C-Chain), and Platform Chain (P-Chain). The X-Chain is used for creating and trading assets. The C-Chain is for smart contract creation. The P-Chain is for coordinating validators and Subnets.
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What Are Wrapped Tokens?

What Are Wrapped Tokens?
A wrapped token is a cryptocurrency token pegged to the value of another crypto. It’s called a wrapped token because the original asset is put in a wrapper, a kind of digital vault that allows the wrapped version to be created on another blockchain.
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What Is a Stablecoin?

What Is a Stablecoin?
A stablecoin is a cryptoasset pegged to another asset, such as fiat currencies or precious metals. Stablecoins are designed to maintain a relatively stable price so that users can avoid the volatility risks common in the crypto markets.
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Tokenized Bitcoin on Ethereum Explained

Tokenized Bitcoin on Ethereum Explained
Tokenized Bitcoin is a way to use bitcoin on other blockchains. But wait, isn’t Bitcoin great already? Indeed it is! It has a solid use case, and it already acts as a kind of public good. At the same time, its purposely limited features leave little room for further innovation.
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How to Use WalletConnect

WalletConnect is a protocol used by many crypto wallets that allows you to easily connect with the many DApps of decentralized finance (DeFi). Simply find the DApp you want to interact with, connect with a QR code or deep link, and you’re good to go. Always remember to disconnect at the end of any session for maximum security
WalletConnect is a protocol used by many crypto wallets that allows you to easily connect with the many DApps of decentralized finance (DeFi). Simply find the DApp you want to interact with, connect with a QR code or deep link, and you’re good to go. Always remember to disconnect at the end of any session for maximum security
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What Is Ethereum? (ETH)

Ethereum is a decentralized computing platform. You can think of it like a laptop or PC, but it doesn't run on a single device. Instead, it simultaneously runs on thousands of machines around the world, meaning that it has no owner.
Ethereum is a decentralized computing platform. You can think of it like a laptop or PC, but it doesn't run on a single device. Instead, it simultaneously runs on thousands of machines around the world, meaning that it has no owner.
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What Is Bitcoin (BTC)

Bitcoin is a digital form of cash. But unlike the fiat currencies you’re used to, there is no central bank controlling it.
Bitcoin is a digital form of cash. But unlike the fiat currencies you’re used to, there is no central bank controlling it. Instead, the financial system in Bitcoin is run by thousands of computers distributed around the world. Anyone can participate in the ecosystem by downloading open-source software.
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How to Use MetaMask

If you’re interested in the Ethereum ecosystem, you need an application like MetaMask. Far more than a simple wallet, it allows you to interact with websites that integrate Ethereum.
If you’re interested in the Ethereum ecosystem, you need an application like MetaMask. Far more than a simple wallet, it allows you to interact with websites that integrate Ethereum.
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A Beginner's Guide to Bitcoin's Lightning Network

A Beginner's Guide to Bitcoin's Lightning Network
Cryptocurrencies have some pretty unique properties. They can’t be hacked or shut down easily, and anyone can use them to transmit value around the globe without a third party’s intervention. To ensure that these features remain, significant trade-offs must be made. Since many nodes are responsible for running a cryptocurrency network, throughput is limited. As a result, the number of transactions per second (TPS) a blockchain network can process is relatively low for a technology that aims to be adopted by the masses.
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What is Fundamental Analysis (FA)?

What is Fundamental Analysis (FA)?
When it comes to trading – whether you’re dealing with century-old stocks or nascent cryptocurrencies – there’s no exact science involved. Or, if there is, Wall Street’s top players ensure that the formula remains a well-kept secret.
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History of Blockchain

The underlying technology behind cryptocurrencies is the blockchain. It allows every client in the network to reach consensus without ever having to trust each other.
The underlying technology behind cryptocurrencies is the blockchain. It allows every client in the network to reach consensus without ever having to trust each other.
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How Does Blockchain Work?

In short, a blockchain is a list of data records that works as a decentralized digital ledger. The data is organized into blocks, which are chronologically arranged and secured by cryptography.
In short, a blockchain is a list of data records that works as a decentralized digital ledger. The data is organized into blocks, which are chronologically arranged and secured by cryptography.
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What Is MakerDAO (DAI)?

What Is MakerDAO (DAI)?
MakerDAO is a Decentralized Finance (DeFi) project with a crypto-collateralized, stablecoin DAI pegged to the US dollar. Its community manages the coin via a Decentralized Autonomous Organization (DAO). Users generate DAI by locking cryptocurrency in a Maker Vault at a certain Liquidation Ratio. For example, a 125% Liquidation Ratio requires $1.25 of crypto collateral value for each $1 of DAI.
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What Is a Crypto Wallet?

In short, a crypto wallet is a tool that you can use to interact with a blockchain network. There are various crypto wallet types, which can be divided into three groups - software, hardware, and paper wallets. Depending on their working mechanisms, they may also be referred to as hot or cold wallets.
In short, a crypto wallet is a tool that you can use to interact with a blockchain network. There are various crypto wallet types, which can be divided into three groups - software, hardware, and paper wallets. Depending on their working mechanisms, they may also be referred to as hot or cold wallets.
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What Is Tulip Mania?

The Tulip Mania is considered by many as the first recorded story of a financial bubble, which supposedly occurred in the 1600s. Before discussing if the Tulip Mania was really a financial bubble or not, let’s go through the most common narrative that considers it to be a real bubble.
The Tulip Mania is considered by many as the first recorded story of a financial bubble, which supposedly occurred in the 1600s. Before discussing if the Tulip Mania was really a financial bubble or not, let’s go through the most common narrative that considers it to be a real bubble.
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What Is Technical Analysis?

What Is Technical Analysis?
Technical analysis (TA), often referred to as charting, is a type of analysis that aims to predict future market behavior based on previous price action and volume data. The TA approach is extensively applied to stocks and other assets in traditional financial markets, but it is also an integral component of trading digital currencies in the cryptocurrency market.
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What Is Staking?

What Is Staking?
You may think of staking as a less resource-intensive alternative to mining. It involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network. Simply put, staking is the act of locking cryptocurrencies to receive rewards.
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What Is Phishing?

What Is Phishing?
Phishing is a type of cyber attack where a malicious actor poses as a reputable entity or business in order to deceive people and collect their sensitive information - such as credit card details, usernames, passwords, and so forth. Since phishing involves psychological manipulation and relies on human failures (instead of hardware or software) it is considered a type of social engineering attack.
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What Is Inflation?

Ever hear your grandmother talk about how everything was cheaper when she was younger? That’s because of inflation. It’s caused by irregularities in supply and demand for products and services, leading to an increase in prices.
Ever hear your grandmother talk about how everything was cheaper when she was younger? That’s because of inflation. It’s caused by irregularities in supply and demand for products and services, leading to an increase in prices.
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What Is Hyperinflation?

All economies experience some level of inflation, which occurs when the average price of goods increases, as the purchasing power of that currency decreases. Usually, governments and financial institutions work together to ensure inflation occurs at a smooth and gradual rate. However, there have been many instances in history where inflation rates have accelerated at such an unprecedented degree that it caused the real value of that country's currency to be diminished in alarming proportions. This accelerated rate of inflation is what we call hyperinflation.
All economies experience some level of inflation, which occurs when the average price of goods increases, as the purchasing power of that currency decreases. Usually, governments and financial institutions work together to ensure inflation occurs at a smooth and gradual rate. However, there have been many instances in history where inflation rates have accelerated at such an unprecedented degree that it caused the real value of that country's currency to be diminished in alarming proportions. This accelerated rate of inflation is what we call hyperinflation.
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What Is Hashing?

What Is Hashing?
Hashing refers to the process of generating a fixed-size output from an input of variable size. This is done through the use of mathematical formulas known as hash functions (implemented as hashing algorithms).
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What Is Fiat Currency?

Simply put, fiat currency is legal tender that derives its value from its issuing government rather than a physical good or commodity. The strength of the government that establishes the value of fiat currency is key in this type of money. Most countries around the world use the fiat currency system to purchase goods and services, invest, and save. Fiat currency replaced the gold standard and other commodity-based systems in establishing the value of legal tender.
Simply put, fiat currency is legal tender that derives its value from its issuing government rather than a physical good or commodity. The strength of the government that establishes the value of fiat currency is key in this type of money. Most countries around the world use the fiat currency system to purchase goods and services, invest, and save. Fiat currency replaced the gold standard and other commodity-based systems in establishing the value of legal tender.
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What Is Cryptojacking?

What Is Cryptojacking?
Cryptojacking is a malicious activity, in which an infected device is used to secretly mine for cryptocurrencies. In order to do so, the attacker makes use of the victims’ processing power and bandwidth (in most cases this is done without their awareness or consent).
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What Is Arbitrage Trading?

What Is Arbitrage Trading?
Arbitrage trading is a relatively low-risk trading strategy that takes advantage of price differences across markets. Most of the time, this involves buying and selling the same asset (like Bitcoin) on different exchanges. Since the price of Bitcoin should, in theory, be equal on Binance and on another exchange, any difference between the two is likely an arbitrage opportunity.
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