Learn Crypto| Crypto Mindset


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♾Learn Crypto| Crypto Mindset💡
💠Every details about Crypto Currency.
♾Learn How Crypto Work

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What are crypto cards?💳

Crypto cards are an ingenious instrument allowing you to pay for goods with crypto anywhere that accepts credit cards: stores, gyms, transportation, and the internet. They work the same way as a traditional credit card issued by banks, but they’re connected to your crypto wallet instead of your bank.

This way, you can hold your assets on an exchange—e.g., USDT on Binance—while having the ability to pay for goods and services. What’s more, there are no network fees for these transactions.

The downside is, however, that crypto cards are only available in certain countries. If you are located in a country that accepts crypto cards, you can get your hands on one of these popular cards: Coinbase Card, Crypto.com Card, or Binance Card.

Always be wary of scammers and never enter your card information on suspicious sites or platforms.

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Crypto security tip: Spam scam coins

If you actively interact with your noncustodial wallet, you’ll soon start receiving various scam coins in varying quantities.

Scammers use them for a variety of purposes—e.g., to confuse you into sending funds to their wallet. Or to get you interested in the coin and visit their site.

We recommend you never visit sites representing these suspicious scam tokens. Crypto beginners are curious and interested when they see that a few thousand coins were sent to them “just for fun”; however, don’t believe everything at face value—99.99% of the time, it’s to deceive you.

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Crypto Speak: Moonshot

A “moonshot” is an exponential increase in the price of a particular cryptocurrency. When you see news that some token has grown by +10,000% in 24 hours, you’re looking at a true moonshot.

Often, moonshots happen against the backdrop of unexpected news and events—e.g., hype around artificial intelligence technologies starts making its rounds, with AI-related tokens surging in response.

Meanwhile, a lot of scammers start creating their own tokens with the AI theme baked into their names, and they, too, can make moonshots if they manage to fool investors—and complete the scam with a rug pull.

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What is short and long?

“Short” and “long” are standard trading terms (not only in crypto, by the way).

Long means buying assets and expecting their prices to increase in the future. That is, you buy a coin believing it will appreciate.

Short, on the contrary, means betting on the fall of the asset price. You “borrow” assets from a marketplace, sell them now, and repurchase them later if/when the price falls.

In fact, both strategies have a lot of nuances, but this post is for a general understanding.

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What is a paper wallet?

This is the “classic” way of storing Bitcoin. It’s just a piece of paper with your public and private keys written on it and a QR code.

As technology has advanced, their popularity has waned, and paper wallets have almost completely disappeared because now we can create paper wallets by simply writing down a seed phrase.

In addition, crypto users try to avoid data breaches. If your paper wallet was digitally printed, a hacker may have access to the data.

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Support level and resistance level

Today’s post is serving up a little bit of trading theory, so let’s discuss two important concepts.

“Support” and “resistance” levels are key terms in the cryptocurrency market.

A support level is a price point where a coin’s rate falls but cannot break down. That is, investors consider this point attractive to buy the asset and, thus, stop its fall by actively buying.

A resistance level is a price point that a coin’s rate is hitting but cannot overcome upward. Because investors begin to sell actively, and the price goes down.

Analyzing these levels helps to predict further price movements and form a successful trading strategy.
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What do I do if I lose a seed phrase?

It’s a common yet critical question. After losing a recovery phrase, people panic and don’t know what to do next.

We can suggest two things:

1. Any noncustodial wallet you are authorized to use has a backup function: You can find it in the settings, and the wallet will show you the seed phrase.
2. If you don’t know where the piece of paper on which you wrote the seed phrase is, it’s best to withdraw all your crypto to a newly created wallet and keep those 12 sacred words more carefully from that moment on. If you’re sure it is destroyed (for example, it was eaten by your cat or mangled by your child), then it’s okay. Just restore it directly in your wallet and continue using this address.

But if you’re logged out of your wallet and have no idea where you’ve placed your piece of paper, that’s when you have serious problems😬

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Why do I need diversification?

Asset diversification is an investment strategy in which you allocate your assets in various areas to minimize the risk of loss.

If one of your coins in your portfolio starts to fall, your portfolio can remain stable (or even show profits) at the expense of other coins.

In crypto, diversification is crucial.

Since digital assets are extremely volatile, investing in just one coin can cause huge losses.

Moreover, it is recommended to diversify even stablecoins—just in case one of them suddenly collapses—you don’t lose all your money.

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3 services that will help when working with crypto (useful for advanced crypto users)

1. CryptoPanic is a convenient news aggregator. It will help you find the latest news on your requests. Just type in a word or coin, and the service will show all of its latest news.

2. CoinMarketCal is a calendar of cryptocurrency events. With its help, you’ll always know when the most important events are happening.

3. De.Fi is a multifunctional service. It analyzes your wallet: It shows the assets, transactions, and deposits to different pools. Its main feature is Scanner, which lets you check any smart contract and understand how high the probability of scam is.

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What is a Ponzi scheme?

Although this is not a term specific to cryptocurrencies, it is crucial for all crypto enthusiasts to understand it.

A Ponzi scheme is a fraudulent scheme in which hackers cover customer liabilities not with actual revenues but rather by luring new participants.

This is essentially a traditional financial pyramid. It works “well” as long as there is a steady stream of new users, but eventually, there will be so many users that the pyramid will inevitably collapse.

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What is a Bitcoin halving?

Halvings are a planned reduction in the amount of Bitcoin issued that miners earn. The fourth Bitcoin halving is less than a year away.

The mechanism is embedded in Bitcoin’s program code to ensure that the total number of coins on the network never exceeds 21 million units.

A Bitcoin halving happens approximately once every four years, and we expect the next halving to occur in the spring of 2024.

Why it matters:

As a result of all previous halvings, the price of BTC has significantly risen, as there are far fewer coins in circulation (miners will lose 50% of their income).

And if in 2024 Bitcoin “repeats” its usual cycle, we can expect a very powerful growth of the digital gold. But don’t forget that profitability in the past does not guarantee profitability in the future and that the price of cryptocurrencies is influenced by many different factors.

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🟢How to Spot a Crypto Whale

➡️Thanks to blockchain technology’s transparency, immutability, and openness, there are numerous ways to spot whales in action. Nevertheless, this isn’t always an easy task. Whales often use innovative tactics to move funds covertly in an effort to conceal their identity and the extent of their holdings. However, there are some indicators that can help identify potential crypto whales and their activity.

➡️Analyzing trading patterns is a good starting point in identifying whale activity. Whales are known to impact the market by making large trades that can cause sudden price spikes or dips. You can identify potential whale activity by looking out for unusual patterns.

➡️You can also look for large transactions using blockchain explorers such as Etherscan or Blockchain.com. When you see a large amount of cryptocurrency being moved, it could be a sign that a whale is active.

➡️Another way to identify whale activity is to pay attention to social media platforms, especially Twitter. Whales often share their opinions on cryptocurrencies, market trends, and investment strategies on social media. You can gain insight into the movements of whales by looking out for posts or comments from these accounts.

➡️Barring the more vocal whales who often announce their holdings on social media, whales may operate pseudonymously or divide their holdings among multiple wallets to avoid drawing attention to their assets.

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🟢Whale Watching: Should Crypto Investors Follow Whale Moves?

🟢Following crypto whales can be advantageous for investors. One of the primary advantages is gaining insight into market sentiment. As whales make large trades, their actions can significantly influence investors’ opinions of a particular asset.

➡️If whales start selling large chunks of their holdings in a particular asset, investors could have their confidence swayed, leading to greater downward pressure on the price of the asset. Conversely, whales may drive up the price of an asset, leading to a more bullish sentiment among investors. Being informed of whale trading activities earlier than others could place you ahead of the crowd.

🟡Next topic 🟢How to Spot a Crypto Whale

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🟢What Makes a Cryptocurrency Holder a “Whale”?

➡️While whales are individuals or entities who hold a large amount of cryptocurrency, there is no fixed amount of crypto assets someone must hold to be considered a whale. The term is relative and depends on the specific cryptocurrency in question.
A crypto holder can be considered a whale if they hold a significant percentage of the total supply of a particular cryptocurrency and are able to impact price movements by making trades. 

➡️To put this in perspective, someone who holds $1 million worth of an asset with a market capitalization of $100 million is a whale, while someone who holds $1 million worth of an asset with a market capitalization of $30 billion may not be considered a whale. While they each have $1 million in crypto assets, the former has more power to move markets than the latter.

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Pros and cons of investing in stocks➡️

Pros
➡️

🟢Increasingly accessible: It is becoming easier to invest in stocks, with many online platforms and mobile apps emerging in the market. Many such offerings have intuitive interfaces and are integrated with other financial services.

🟢Regulated: Many governments heavily regulate the stock market. For example, in the US, publicly traded companies must disclose information that can impact their stock value to the Securities and Exchange Commission (SEC) — a government oversight agency in charge of investor protection.
 
🟢(Somewhat) inflation-resistant: Certain types of stocks, such as Treasury inflation-protected securities (TIPS), can act as a hedge against inflation.

🟢Variety: There is a wide selection of stocks across different industries and sectors that are available to retail investors. Traders can choose equity based on a large number of criteria, from the company’s business model and location to whether or not they pay dividends.

Cons➡️

🟢Volatility: The stock market, too, isn't immune to sudden changes in prices in the short term. If a company is doing well, its stock prices will likely go up. Similarly, if a company reports losses or receives bad press, the stock value will likely go down. Furthermore, some stocks may be more volatile than others. For example, the value of growth stocks tends to fluctuate more than that of blue-chip stocks that represent shares in established companies with flawless reputations.

🟢Higher fees: In most cases, the fees associated with stock exchange transactions are relatively high, and there are more of them compared to cryptocurrency trading. On top of brokerage fees and commissions, there are also other charges when you purchase or sell your stocks.

🟢Returns not guaranteed: Like any financial market, there are no guaranteed returns with stocks. While there are stocks that often outperform alternative investments in the long term, there is a chance that they may not do well during a shorter investment period.

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Pros and cons of investing in cryptocurrency➡️

Pros ➡️

🟢Accessible: Crypto is borderless, and anyone with an internet connection can use it. 

🟢Decentralized: Most cryptocurrency systems don’t rely on a central authority, making crypto resistant to censorship and centralized control.

🟢Inflation-resistant: Cryptocurrencies aren’t directly influenced by central banks’ monetary policies, so their prices are less malleable to inflation. However, cryptocurrencies are not all the same, so it’s important to consider the issuance rate and supply of each crypto asset.

🟢Flexible: Compared to stocks, there are more ways for investors to grow their crypto holdings besides trading. Crypto investors can get profit from yield farming, staking, and providing liquidity. Products such as Binance Earn are a great example of how you can increase your crypto holdings. 
Varied: The value of many tokens is not just monetary. For one, Fan Tokens can provide token holders exclusive benefits and privileges with their favorite sports teams or brands. Some cryptocurrencies are governance tokens, which give holders the right to participate in the development of a respective project or protocol.

➡️Cons

🟢Price volatility: The crypto market is famously prone to dramatic price swings. The potential for quick gains can be very attractive to new investors. However, they should be aware that its flipside is the potential for equally dramatic losses.

🟢Imperfect regulation: Cryptocurrencies are legal in many countries, but they're not fully and universally regulated. Investors should be mindful of potential compliance issues and do legal research according to their location.
 
🟢Custody risks: Cryptocurrencies like Bitcoin require a private key to access the tokens stored in a digital crypto wallet. Forgetting a seed phrase or losing a physical crypto wallet could result in losing access to your crypto forever.

🟢Returns not guaranteed: Like any financial market, there are no guaranteed returns with crypto. While Bitcoin and other altcoins performed well in the long term, there is no guarantee that they will continue going up in the future, and there is always a chance they may not do well during a shorter investment period. 
 
🟢Next topic 🟢Pros and cons of investing in stocks

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Should I invest in cryptocurrency or stocks?➡️
Both asset classes have their advantages and limitations. The decision depends on your risk tolerance and other preferences. Ultimately, what drives the success of your investment is your ability to weigh the risks and rewards and not the investment vehicles that you use. Many experienced investors diversify their portfolios, getting exposure to both cryptocurrency and stocks.
 
🟢Next topic 🟢Pros and cons of investing in cryptocurrency

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🟢What are the main differences between cryptocurrencies and stocks?➡️

Both cryptocurrencies and stocks can be used by investors to build wealth. Yet, investing in stocks is different from investing in crypto. 
Unlike stocks, investment in crypto doesn’t come with ownership of a share of a company. Crypto investors also don’t receive dividends in the traditional sense. Instead, one can lend or stake their crypto tokens for passive income. 

➡️There are also major differences in how crypto and stocks are traded. You can buy crypto at any digital currency exchange at any time of day and night, while stock exchanges operate with limited opening hours on weekdays. 
 
🟢Next topic 🟢Should I invest in cryptocurrency or stocks?

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Crypto Vs. Stock➡️

🟢What is cryptocurrency? 

In simple terms, cryptocurrencies are digital currencies powered by blockchain technology. They rely on cryptographic techniques to secure and verify transactions and are typically used as a medium of exchange and a store of value. Most cryptocurrencies run on decentralized networks, and their market value is driven by supply and demand.

🟢What is a stock?

Stocks represent partial ownership of equity in a business, and they reflect the value of a functioning company. Sometimes, the owner of a stock is also entitled to a share of the company's profits in the form of a dividend. The value of a stock can move according to the company’s performance and other factors such as relevant news announcements. 
 
🟢Next topic 🟢 What are the main differences between cryptocurrencies and stocks?

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