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What is Fundamental Analysis (FA)?

What is Fundamental Analysis (FA)?

Introduction

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.

What we have instead is a vast array of tools and methodologies employed by traders and investors. For the most part, you can sort these techniques into two categories: fundamental analysis (FA) and technical analysis (TA).

In this article, we’ll dive into the basics of fundamental analysis.

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 organization to look at the market or industry it’s operating in. Who are the competitors? What demographics is the company targeting? Is it expanding its reach? You could zoom out even further to take into account the economic considerations like interest rates and inflation, to name just a couple of factors.

The above is what’s known as a bottom-up approach: you start with a company you’re interested in and work your way up to understand its place in the broader economy. But you could equally adopt a top-down approach, where you narrow down your picks by first examining the bigger picture.

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.

Fundamental analysis (FA) vs. technical analysis (TA)

Traders and investors new to the cryptocurrency, forex or stock markets are often confused over which approach to take. Fundamental analysis and technical analysis stand in stark contrast and rely on significantly different methodologies to analyze different things. And yet, both provide data relevant to trading. So which one is best?

In fact, it might make more sense to question what each brings to the table. In essence, fundamental analysts believe that stock price is not necessarily indicative of the stock’s true value – an ideology that underpins their investment decisions.

Conversely, technical analysts believe that future price movement can be somewhat predicted from past price action and volume data. They don’t concern themselves with studying external factors, preferring instead to focus on price charts, patterns, and trends in markets. They aim to identify ideal points for entering and exiting positions.

Proponents of the efficient market hypothesis (EMH) believe that it’s impossible to consistently outperform the market with technical analysis (TA). The theory suggests that financial markets represent all known information about assets (that they are “rational”) and that they already take into account historical data. “Weaker” versions of the EMH do not discredit fundamental analysis, but “stronger” forms argue that it’s impossible, even with rigorous research, to gain a competitive edge.

Understandably, there is no objectively better strategy out of the pair, as both can present valuable insights into different areas. Some may lend themselves better to certain trading styles, and, in practice, many traders use a combination of both to observe the bigger picture. This is true for short-term trades as it is for long-term investments.

We don’t look to candlesticks, MACD, or RSI for insights in fundamental analysis – there are a handful of FA-specific indicators that are used instead. In this section, we’ll discuss some of the most popular ones.

Earnings per share (EPS)

Earnings per share is an established measure of a company’s profitability, telling us how much profit it makes for each outstanding share. It’s calculated using the following formula:

(net income - preferred dividends) / number of shares

Suppose that a company doesn’t pay out dividends, and its profit is $1 million. With 200,000 shares issued, the formula gives us an EPS of $5. The calculation is not a particularly complex one, but it can provide us with some insight into potential investments. Businesses with higher (or growing) EPS are typically more attractive to investors.

Diluted earnings per share is favored by some, as it also takes into account factors that could increase the total number of shares. In the case of stock options, for example, employees are given the option to purchase company stock. Because this generally gives a higher number of shares to divide the net income, we would expect to see a lower value for diluted EPS versus simple EPS.

As with all indicators, earnings per share should not be the sole metric used to value a prospective investment. That said, it’s a handy tool when used alongside others.

Price-to-earnings (P/E) ratio

The price-to-earnings ratio (or, simply, P/E ratio) values a business by comparing share price with its EPS. It’s calculated with the following formula:

share price / earnings per share

Let’s reuse the same company from the previous example, which had an EPS of $5. Let’s say that each share trades at $10, which would give us a P/E ratio of 2. What does that mean? Well, it depends largely on what the rest of our research shows.

Many use the profit-to-earnings ratio to determine whether a stock is overvalued (if the ratio is higher) or undervalued (if the ratio is lower). It’s a good idea to take the number into account by comparing it with the P/E ratio of similar businesses. Again, this rule doesn’t always hold true, so it’s best used alongside other quantitative and qualitative analysis techniques.

Price-to-book (P/B) ratio

The price-to-book ratio (also known as the price-to-equity ratio or the P/B ratio) can tell us about how investors value the company in relation to its book value. The book value is a business’s value as defined in its financial reports (typically, assets minus liabilities). The calculation looks like this:

price per share / book value per share

Let’s once again revisit our company from previous examples. We’ll assume that it has a book value of $500,000. Each share trades at $10, and there are 200,000 of them. Our book value per share is, therefore, $500,000 divided by 200,000, which gives us $2.5.

Plugging the numbers into the formula, $10 divided by $2.5 gives us a price-to-book ratio of 4. On the surface, this doesn’t look too good. It tells us that shares are currently trading for four times what the company is actually worth on paper. It could suggest that the market is overvaluing the business, perhaps by expecting huge growth. If we had a ratio of less than 1, it would point to the business having more value than the market currently recognizes.

A limitation of the price-to-book ratio is that it’s better suited to the assessment of “asset-heavy” businesses. After all, companies with little physical assets are not well-represented.

Price/earnings-to-growth (PEG) ratio

Price/earnings-to-growth ratio (PEG) is an extension to the profit-to-earnings ratio, expanding its scope to take growth rates into account. It uses the following formula:

price-to-earnings ratio / earnings growth rate

The earnings growth rate is an estimate of the predicted growth in earnings for the company in a set time frame. We express it as a percentage. Suppose that we’ve estimated average growth of 10% over the next five years for our aforementioned company. We take the price-to-earnings ratio (2) and divide it by 10 to reach a ratio of 0.2.

That ratio would suggest that the company is a good investment as it’s heavily undervalued when we factor in future growth. Any business with a ratio of less than 1, generally speaking, is undervalued. Any above could be overvalued.

The PEG ratio is favored over the P/E one by many, as it considers a fairly important variable that P/E omits.

Fundamental analysis and cryptocurrencies

The aforementioned metrics aren’t really applicable in cryptocurrency. Instead, you might look to other factors to assess a project’s viability. In the following section are a handful of indicators used by cryptocurrency traders.

Network value-to-transactions (NVT) ratio

Often regarded as the P/E ratio equivalent of the cryptocurrency markets, the NVT ratio is fast becoming a staple in crypto FA. It can be calculated as follows:

network value / daily transaction volume

NVT attempts to interpret a given network’s value based on the value of transactions it processes. Suppose that you have two projects: Coin A and Coin B. Both have a market capitalization of $1,000,000. However, Coin A has a daily transaction volume worth $50,000, whereas Coin B’s is worth $10,000.

The NVT ratio for Coin A is 20, and the NVT for Coin B is 100. Generally speaking, assets with lower NVT ratios are considered undervalued, while those with higher ratios may be considered overvalued. These merits alone suggest that Coin A is undervalued compared to Coin B.

Active addresses

Some look to the number of active addresses on a network to gauge how much it’s being used. While not reliable as a standalone indicator (the metric can be gamed), it can nonetheless reveal information about network activity. You might factor that into your true valuation of a given digital asset.

Price-to-mining-breakeven ratio

The price-to-mining-breakeven ratio is a metric for valuing Proof of Work coins, which are mined by network participants. It takes into account the costs associated with this process: namely, electricity and hardware expenditure.

coin market price / cost to mine a coin

The price-to-mining-breakeven ratio can reveal a lot about the current state of a blockchain network. The breakeven refers to the cost of mining a coin – for instance, if it’s at $10,000, then miners typically spend $10,000 to generate a new unit.

Suppose that Coin A trades at $5,000 and Coin B at $20,000, and both have a breakeven point of $10,000. Coin A’s ratio will be 0.5, while Coin B’s will be 2. Since Coin A’s ratio is under 1, it tells us that miners are operating at a loss to mine the coin. Mining Coin B is profitable as, for every $10,000 spent mining, you would expect to make $20,000.

Because of the incentives, you might anticipate that the ratio would trend towards 1 over time. For Coin A, those mining at a loss would likely leave the network unless the price increased. Coin B has an attractive reward, so you’d expect more miners to join to take advantage of it until it’s no longer profitable.

The effectiveness of this indicator is disputed. Still, it gives you an idea of the mining economics, which you can factor into your overall assessment of a digital asset.

Whitepaper, team, and roadmap

The most popular method for establishing the value of cryptocurrencies and tokens involves some good old-fashioned research into the project. Reading a whitepaper, you can understand a project’s goals, its use cases, and its technology. The track records of team members give you an idea of their ability to build and scale the product. Lastly, a roadmap tells you whether the project is on track. It can be supplemented with additional research to determine the likelihood that the project will hit its milestones.

Pros and cons of fundamental analysis

Pros of fundamental analysis

Fundamental analysis is a robust methodology for assessing businesses in a way that technical analysis simply cannot compete with. To investors worldwide, studying a range of qualitative and quantitative factors is a crucial starting point for any trade.

Anyone can conduct fundamental analysis as it relies on tried-and-tested techniques and readily-available business data. Or at least, this is the case in traditional markets. Indeed, if we look to cryptocurrency (still a small industry), data is not always available, and a heavy correlation between assets means that FA might not be as effective.

Done correctly, it provides a foundation for identifying stocks currently undervalued and poised to appreciate over time. Top investors like Warren Buffett and Benjamin Graham have consistently demonstrated that rigorous research into businesses in this manner can yield tremendous results.

Cons of fundamental analysis

It’s easy to do fundamental analysis, but it’s tougher to do good fundamental analysis. Determining the “intrinsic value” of a stock is a time-consuming process that requires a lot more work than just plugging numbers into a formula. Many factors need to be assessed, and the learning curve for doing so effectively can be steep. What’s more, it’s better suited to long-term trades than short-term ones.

This type of analysis also overlooks powerful market forces and trends that technical analysis can identify. As economist John Maynard Keynes once said:

The market can stay irrational longer than you can remain solvent.

Stocks that appear undervalued (by every metric) are not guaranteed to increase in value in the future.

Closing thoughts

Fundamental analysis is an established practice that some of the most successful traders swear by. By refining a strategy, investors can not only learn to better estimate the true value of stocks, cryptocurrencies, and other assets but also understand businesses and industries better as a whole.

Combined with technical analysis, fundamental analysis can give traders and investors a well-rounded understanding of which assets and businesses they could profit from. The combination of FA and TA is favored by many in both the legacy and cryptocurrency markets.

Given the nascency of the crypto markets, however, you should understand that FA may not be as effective. Always Do Your Own Research and ensure that you have a solid risk management strategy in place.

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Что делать с долларом сегодня

Что делать с долларом сегодня
Сегодня в России для россиян доллар становится очень токсичной валютой. То есть им (долларом) тяжело владеть, если ты владеешь им, то на тебя накладывают различные комиссии, вы наверное уже в курсе, что есть комиссия за хранение валюты на брокерских счетах, на банковских счетах, блокируют swift переводы и так далее. В чём главная опасность? И почему банки сейчас так выжимают людей из доллара? Главная опасность в возможной блокировке российских банков, а точнее корреспондентских счетов российских банков в иностранных банках. Что это такое? В чём суть?
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What Are Nodes?

What Are Nodes?
The definition of a node may vary according to the context. When it comes to computer or telecommunication networks, nodes may act either as a redistribution point or as a communication endpoint. Usually, a node consists of a physical network device, but there are some cases where virtual nodes are used.
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Coin Mixing and CoinJoins Explained

Coin Mixing and CoinJoins Explained
Bitcoin is often referred to as digital cash, but this is a questionable comparison. If Alice pays Bob ten dollars in cash, Bob has no idea where the money came from. If he later goes on to give it to Carol, she will be unable to deduce that Alice was once in possession of it. Bitcoin is different because of its inherent public nature. The history of a given coin (more precisely, an unspent transaction output or UTXO) can be trivially observed by anyone. It’s a bit like writing the transaction amount and names of participants on a bill every time it’s used.
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What Is Anti-Money Laundering (AML)?

What Is Anti-Money Laundering (AML)?
AML regulations attempt to stop the illegal laundering of illicit funds. Individual governments and multinational organizations like the FATF legislate against money laundering activities. Money laundering takes “dirty” money and turns it into clean money. This can be done by disguising the origins of the funds, mixing them with legitimate transactions, or investing them into legal assets.
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What Are Crypto Cards and How Do They Work?

What Are Crypto Cards and How Do They Work?
A typical crypto card lets you earn crypto rewards or instantly convert your crypto to fiat currency to pay for goods and services. Both Mastercard and Visa issue crypto cards, meaning you can use your crypto in millions of locations globally. A prepaid crypto card is similar to a debit card in that it has to be pre-loaded with crypto to spend. You can get a crypto card from a licensed issuer such as a crypto exchange or bank. However, crypto cards aren't without risk. Your funds stored on the card can still lose their market value, and any transactions you make with your card are likely to be taxable.
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What Is Play-to-Earn and How to Cash Out?

What Is Play-to-Earn and How to Cash Out?
Play-to-earn games allow users to farm or collect crypto and NFTs that can be sold on the market. By playing the game regularly, each player can earn more items or tokens to sell and generate an income. Some players have even begun to supplement or replace their salaries playing these blockchain games. However, such activity involves risk, as you typically need to put up an initial investment to purchase characters and items to play the game. Blockchain helps guarantee the collectibility of these items and create working digital economies. Blockchain technology and NFTs allowed for the creation of digital items that are impossible to duplicate. This created the concept of digital scarcity.
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What Is Uniswap and How Does It Work?

What Is Uniswap and How Does It Work?
Uniswap is a set of computer programs that run on the Ethereum blockchain and allow for decentralized token swaps. It works with the help of unicorns (as illustrated by their logo). Traders can exchange Ethereum tokens on Uniswap without having to trust anyone with their funds. Meanwhile, anyone can lend their crypto to special reserves called liquidity pools. In exchange for providing money to these pools, they earn fees. How do these magical unicorns convert one token to the other? What do you need to use Uniswap? Let’s read on.
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Mining Pools Explained

Mining Pools Explained
Mining is integral to the security of Proof of Work blockchains. By computing hashes with certain properties, participants are able to secure cryptocurrency networks without the need for a central authority. When Bitcoin first launched in 2009, anyone with a regular PC could compete with other miners to guess a valid hash for the next block. That’s because the mining difficulty was low. There wasn’t much hash rate on the network. As such, you didn’t need specialized hardware to add new blocks to the blockchain.
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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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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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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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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 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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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 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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