It is difficult to determine an exact number of crypto/tokens on the blockchain, as new tokens are constantly being created and others may become inactive or lose their listing on exchanges. However, as of 2021, Coinmarketcap, a website that tracks the market capitalization and other data for various cryptocurrencies, lists over 8,000 different crypto tokens. Now in 2023 that number as increased exponentially to around 15,000. SOME HAVE USER CASES others DO NOT!!! Thats why it very important to DYOR and research the token you are thinking about investing in IE is there a website, Whitepaper, roadmap, who are the development team,funding etc ect you get the idea. better to be safe as there are a lot of scam tokens out there thats why its very important to do your due diligence. With that said lets now dive into the CRYPTOVERSE & it’s disruptive technology…
BITCOIN
Bitcoin is the first decentralized digital currency, and it was created in 2009 by an individual or group of individuals using the pseudonym Satoshi Nakamoto. The idea for Bitcoin was first introduced in a white paper published by Satoshi Nakamoto in 2008, which outlined a new electronic cash system that used a peer-to-peer network to prevent double-spending. The system relied on a technology called blockchain, which is a decentralized public ledger that records all Bitcoin transactions. On January 3, 2009, the first block of the Bitcoin blockchain, known as the Genesis Block, was mined by Satoshi Nakamoto. The first bitcoins were issued and sent to the first users of the network. By now most in the crypto community have heard of the famous PIZZA that was ordered by Satoshi Nakamoto who then payed in Bitcoin 10,000 of them as a Network test and bitcoin was born. Just think what they ARE worth today… The most expensive Pizza ever brought by todays standard.
The identity of Satoshi Nakamoto is still unknown, but the person or group of people behind the pseudonym is believed to have a significant amount of bitcoins.
Bitcoin is often considered as a store of value, similar to gold, due to its finite supply and decentralized nature. It is not controlled by any government or institution, and its supply is limited to 21 million bitcoins. This scarcity, along with its increasing adoption and acceptance as a form of payment, has led some individuals to view it as a hedge against inflation and a way to preserve wealth.
However, it’s worth noting that Bitcoin’s value is highly volatile and can fluctuate significantly in a short period of time. This volatility can make it difficult to use as a store of value, as the value of the assets can change rapidly and unpredictably. Additionally, Bitcoin is still a relatively new and experimental technology, and its long-term value and stability have yet to be fully determined.
It’s important to note that Bitcoin is not legal tender in most countries and its value is not guaranteed by any government or institution, which make it a risky investment.
ADOPTION
The adoption of cryptocurrencies on a global scale is a complex issue that is currently being studied and debated by governments, financial institutions, and the general public. Cryptocurrencies have the potential to disrupt the traditional financial system, but there are also concerns about their lack of regulation and potential for illegal activities.
Currently, the adoption of cryptocurrencies varies greatly by country. Some countries have embraced them and have even developed their own national cryptocurrencies, while others have outright banned them.
The widespread adoption of cryptocurrencies on a global scale would require significant changes in regulations, infrastructure, and the general public’s perception of them. For example, governments would need to address concerns about money laundering and tax evasion, and establish regulations to protect consumers. Financial institutions would also need to integrate cryptocurrencies into their systems, and consumers would need to become comfortable using them for everyday transactions.
It’s difficult to predict whether or not cryptocurrencies will be adopted worldwide, as it will depend on how quickly the technology develops, how governments and financial institutions decide to regulate it, and how quickly they can implement it. It’s also important to consider that there are many factors that can affect the adoption of cryptocurrencies, such as the availability of infrastructure, public acceptance, and the willingness of other countries to adopt similar systems.
BANKING SECTOR…
The relationship between the banking sector and cryptocurrencies is complex and can vary depending on the specific bank and country. Some banks have embraced cryptocurrencies and have begun offering services related to them, such as the ability to buy and sell cryptocurrencies or to use them to make purchases. Other banks have been more cautious, citing concerns about the regulatory environment and potential risks associated with cryptocurrencies. Overall, the banking sector’s attitude towards cryptocurrencies is evolving and may change as the regulatory environment and general understanding of cryptocurrencies evolves and are now developing their own in house CBDCs .
Also bare this mind there are a few court cases happening right now in the USA brought by the SEC the most noted is the case that was file against Ripple Labs late 2020 which in my personal opinion has no merit it has been going on for over 2yrs,but is finally drawing to a close sometime in the 2nd qtr of 2023 which SHOULD BRING REGULATORY CLAIRTY to the space. Some major institutions around the world are still partnering with ripple the Company to bring in a new monetary payment system worldwide with its XRPL Ledger & Token XRP
…TRADING STRATAGIES…
Can/must be employed when trading the markets stocks, crypto, bonds and fiat currencies so what are they…
There are many different trading strategies that can be employed when trading stocks, crypto, and bonds, and the best strategy for you will depend on your individual goals, risk tolerance, and level of experience. Some of the most popular and profitable strategies include:
Hodl : This strategy involves buying a curtain token or crytpo at a low price and just holding the asset for a long period time the market be it up or down would not effect the value of the asset you brought as you are in it for the long haul,so you wouldn’t be faze if the assets price went up or down,because you brought in low enough to weather the volatility of the markets.Your main aim is to not sell till you reach your price target.
Trend following: This strategy involves identifying the overall direction of the market and buying assets that are trending upward, while selling those that are trending downward. This strategy can be effective in both bull and bear markets, and can be used to trade a wide range of assets, including stocks, crypto, and bonds.
Value investing: This strategy involves buying undervalued assets that have strong fundamentals and a strong likelihood of appreciation in value. This strategy is often used by long-term investors and is based on the idea that the market will eventually correct itself and the asset will increase in value.
Momentum investing: This strategy involves buying assets that have recently had strong performance and selling those that have recently had weak performance. This strategy is based on the idea that assets that have recently performed well are more likely to continue to perform well in the short-term.
Swing trading: This strategy involves holding assets for a short period of time, usually a few days to a few weeks, in order to profit from short-term price movements. This strategy is often used by traders with a moderate level of experience, and can be applied to a wide range of assets, including stocks, crypto, and bonds.
Options trading: This strategy involves buying and selling options contracts, which give the buyer the right to buy or sell an underlying asset at a predetermined price and date. This strategy can be used to profit from both bullish and bearish market conditions, and can be a good way to hedge against losses in other positions.
Scalping: This strategy involves buying and selling assets quickly, taking advantage of small price movements. This strategy is often used by traders with a high level of experience, and requires a deep understanding of market dynamics and the ability to make quick decisions.
It’s important to remember that no strategy is guaranteed to be profitable and each strategy has its own risk. It’s important to do your own research, backtest, and paper trade before committing real money to any strategy. Additionally, diversifying your portfolio and managing risk through stop losses and position sizing is crucial for long term success.
CANDLE STICKS AND TECHNICAL ANALYSIS…
Candlestick charts are a popular way to visualize the price movements of a financial asset. They are used to chart the open, high, low, and close prices of an asset over a specified period of time, such as a day or a week. Each cand stick represents a period of time, with the top of the “candlestick” indicating the highest price, the bottom indicating the lowest price, and the “wicks” on either end indicating the open and close prices. The body of the cand stick represents the range between the open and close prices. The color of the cand stick can also be used to indicate whether the asset’s price increased or decreased during that period, with green indicating an increase and red indicating a decrease. Candlestick charts can be used in technical analysis to help traders identify trends and potential buy and sell opportunities.
HAVING A STOP LOSS WHEN TRADING…
Now why is a stop important use when trading and what is the advantages of using a stop loss to not having one when trading the markets
A stop loss is important in trading because it helps to limit potential losses by automatically selling a security when the price falls to a certain level. This can help to prevent large losses in the event of unexpected market movements.
The advantages of using a stop loss include:
Protecting Capital: It helps to protect your capital by limiting the amount of money you can potentially lose on a trade.
Risk Management: It is a way to manage risk by setting a specific point at which you will exit a trade if it goes against you.
Emotionally Detached: It allows you to be emotionally detached from the trade, because once you set the stop loss you don’t have to worry about it anymore.
It Help in Long term: By using stop loss you can have a long-term trading strategy.
On the other hand, not having a stop loss can lead to large losses in the event of unexpected market movements and can be more emotionally taxing as a trader may have to make quick decisions on when to exit a losing trade.
HOW TO CREATE A TRADING BOT FOR CRYPTO…
For advance TRADERS…
Creating a trading bot for crypto can be a complex process, but can be broken down into a few basic steps:
Research and select a programming language: There are several programming languages that can be used to create a trading bot, such as Python, JavaScript, and C++. It is important to select a language that you are comfortable with and that is supported by the crypto exchanges you plan to trade on.
Choose an exchange and set up an account: There are many crypto exchanges available, such as Binance, Coinbase, and Bitfinex just to name as a example. Each exchange has its own set of rules and regulations, so it is important to research and choose one that is suitable for your trading strategy. Once you have chosen an exchange, you will need to set up an account and obtain the necessary API keys to access the exchange’s trading data.
Develop the trading strategy:YOU SHOULD HAVE ONE ALREADY, if not the next step involves creating the logic and rules for the bot to follow when making trades. This can include things like technical indicators, risk management strategies, and order types.
Build and test the bot: Once the trading strategy has been developed, it is time to build the bot using the programming language and API keys obtained in steps 1 and 2. It is important to test the bot thoroughly to ensure that it is functioning correctly and making profitable trades before deploying it live.
Deploy and monitor the bot: After the bot has been tested and is functioning correctly, it can be deployed live on the chosen crypto exchange. It’s important to monitor the bot regularly and make adjustments as needed to ensure that it continues to make profitable trades.
Keep in mind that creating a trading bot for crypto is a complex process that requires a good understanding of programming, crypto markets, and trading strategies. If you are not experienced in these areas, it may be helpful to consult with a professional or use pre-existing solutions.
PUMP & DUMP WHALES…
In the cryptocurrency market, whales refer to individuals or groups who own a large amount of a particular cryptocurrency. It is believed that these individuals or groups have the ability to move the market through buying and selling large amounts of a cryptocurrency, which can cause prices to rise or fall. This phenomenon is known as “pump and dump.” However, it’s important to note that the market is highly speculative and manipulation is illegal, so it’s hard to say how much impact whales truly have on the market. Additionally, there are many factors that can influence the price of a cryptocurrency, including market sentiment, regulatory changes, and technological developments.
CLOSING AFEW THINGS TO CONSIDER BEFORE YOU INVEST…
Cryptocurrencies can be a good investment for some people, but they also come with a high level of risk and volatility. Before making any investment decisions, it’s important to thoroughly research and understand the specific cryptocurrency you’re considering, as well as the overall market and industry.
It’s also important to remember that the value of cryptocurrencies can fluctuate dramatically, and there’s a chance you could lose all or a significant portion of your investment. Additionally, the regulatory environment for cryptocurrencies is still evolving and uncertain, and there’s a risk that governments could take action to limit or ban their use.
That being said, many people believe that the technology behind cryptocurrencies, particularly blockchain, has the potential to revolutionize a number of industries, and they believe that investing in them could be a good long-term bet. However, it’s important to remember that investing in cryptocurrencies is a speculative move and it may not be suitable for everyone.
It’s always important to consult with a financial advisor before making any investment decisions.
So with that i will close i hope this helps and give you a leading edge and some insight should anyone decide to enter the world of Trading digital Assets/Cryptos…
Wishing you Success
CARPE DEM
Enterprising Spirit…
Enterprisingspirit.blog 