What Every Crypto Trader Should Know!
The Blockchain technology is developing in a rapid pace and the cryptocurrency world is still in a stunning growth. The market value just skyrocketed in 2021 and dozens of new cryptocurrencies are launching each month. We are experiencing a lot of investors overwhelmed by the amount of opportunities and may find it hard to keep up with the terminology, especially for newcomers. At Sugar Factory #Bsc we want to provide all the support needed for new investors to help them understand our ecosystem.
1. WHAT IS THE BLOCKCHAIN?
BLOCKCHAIN is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. #DYOR2. WHAT IS CRYPTOCURRENCY?
CRYPTOCURRENCY is a digital asset that is secured by cryptography and supported by blockchain technology. Form of payment that can be exchanged online, companies have issued their own currencies and these can be traded specifically for the good or service the company provides. #DYOR3. WHAT IS DEFI?
DECENTRALIZED FINANCE is a system by which financial products become available on a public decentralized blockchain network, making them open to anyone to use. The markets are always open and there are no centralized authorities who can block payments or deny you access to anything. #DYOR4. WHAT IS AMMS?
AUTOMATED MARKET MAKERS are smart contracts that create a liquidity pool of ERC20 tokens where everyone can participate, and anyone can build on top of another.. Part of the decentralized finance ecosystem, they allow digital assets to be traded in a permissionless and automatic way. #DYOR5. WHAT IS YIELD FARMING?
YIELD FARMING is the concept of using DeFi platforms to generate interest and rewards. It often involves using the blockchain to make money on trading fees, token generation, and interest. Yield farming is one of the latest trends that has rapidly forced its way into the DeFi world. #DYOR6. WHAT IS HOLDING?
HOLDING means holding one or more cryptocurrencies for a long time without selling them. HODLing helps investors avoid realizing loss from the short-term volatility of cryptocurrencies and gain returns from long-term value appreciation. #DYOR
7. WHAT IS BURN?
BURN means sending some of the coins of a native cryptocurrency or to a public address from which those particular coins can never be spent because the private keys of those addresses are unobtainable. It increases the value of the remaining coins. #DYOR8. WHAT IS DEFLATIONARY?
DEFLATIONARY in cryptocurrency is a term we use for a token that decreases in total supply every time a transfer happens. As with every transfer, a percentage of the transferred amount will be burned while another part of that percentage is redistributed between tokens holders. #DYOR9. WHAT IS CRYPTO ART?
CRYPTO ART (NFTs) are rare digital artworks, sometimes described as digital trading cards or “rares”, associated with unique and provably rare tokens that exist on the blockchain. Adaptable to securing unique items such as contracts, digital art, music. #DYOR10. CRYPTOCURRENCY COIN VS CRYPTOCURRENCY TOKEN?
COIN are currencies that can be used for pay transactions in a cryptocurrency coin conducted exclusively via its own blockchain.TOKEN can act as a form of payment but its primary purpose is to be used within a blockchain platform’s wider ecosystem. #DYOR
11. WHAT IS WHALES?
WHALES in cryptocurrency is a term that refers to market powerful investors who hold enough cryptocurrency that they have the potential to manipulate the currency valuations. This adds volatility in the market, following the prices fall and panic chain reaction. #DYOR12. WHAT IS RUG PULL?
RUG PULL is a malicious maneuver in the cryptocurrency industry where crypto developers abandon a project and run away with investors' funds. #DYORNB: Popular expressions — Binance Academy
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