How Does Cryptocurrency Work?

To truly understand how cryptocurrencies function, we must dive into three fundamental concepts: blockchain technology, cryptocurrency mining, and cryptocurrency wallets. These concepts are the backbone of the cryptocurrency ecosystem, each playing a vital role in ensuring transparency, security, and decentralization.

1. Blockchain Technology
At the heart of every cryptocurrency lies the blockchain—a decentralized digital ledger that records all transactions across a network of computers. Instead of being controlled by a single entity (like a bank), a blockchain operates on a peer-to-peer network, where transactions are grouped into blocks and linked together, forming an immutable chain. Each block contains a list of recent transactions and a unique cryptographic hash that connects it to the previous block, ensuring that once data is added, it cannot be altered. This makes blockchain highly secure and transparent.


2. Cryptocurrency Mining
Mining is the process through which new cryptocurrency tokens are created, and transactions are verified. It involves solving complex mathematical puzzles using computational power. Miners compete to solve these puzzles, and the first to succeed adds a new block of transactions to the blockchain. As a reward for their efforts, miners receive newly minted cryptocurrency tokens and transaction fees. This process not only secures the network but also regulates the supply of coins, preventing inflation and manipulation.


3. Cryptocurrency Wallets
A cryptocurrency wallet is a digital tool that allows users to store, send, and receive their cryptocurrencies. These wallets don't hold actual coins but rather store private and public keys used to sign transactions. The private key gives access to your assets, and the public key is like an address to receive funds. Wallets come in various forms—software wallets, hardware wallets, and even paper wallets—each offering different levels of security and accessibility.

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📊 Market Overview:

BTC : $62225
ETH : $2430.85
BNB : $563.63
SOL : $144.53

⚡ Dominance :

BTC : 54.29 %
ETH : 12.93 %
Stables : 6.86 %

📈 Market Cap :

Total : 2.26T
DeFi : 69.92B
24hr Vol : 44.43B

Bitcoin is "still the best performing asset" class in 2024 despite weak Q3: NYDIG



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📊 Market Overview:

BTC : $62450
ETH : $2428.36
BNB : $575.11
SOL : $143.42

⚡ Dominance :

BTC : 54.35 %
ETH : 12.88 %
Stables : 6.82 %

📈 Market Cap :

Total : 2.27T
DeFi : 69.36B
24hr Vol : 96.05B

📊 Market Overview:

BTC : $60929
ETH : $2386.5
BNB : $567.69
SOL : $139.03

⚡ Dominance :

BTC : 54.18 %
ETH : 12.92 %
Stables : 6.95 %

📈 Market Cap :

Total : 2.22T
DeFi : 68.71B
24hr Vol : 90.69B

📊 Market Overview:

BTC : $62644
ETH : $2464.55
BNB : $572.48
SOL : $147.29

⚡ Dominance :

BTC : 54.03 %
ETH : 12.94 %
Stables : 6.75 %

📈 Market Cap :

Total : 2.29T
DeFi : 71.15B
24hr Vol : 58.16B

📊 Top 10 #Memecoins by 24h Gain:

$BOME : +26.74%
$BRETT : +18.31%
$GIGA : +10.03%
$MEW : +9.29%
$MOG : +6.05%
$PEPE : +5.65%
$FLOKI : +4.89%
$PEOPLE : +4.71%
$SPX : +4.02%
$NPC : +3.40%

What Is Crypto Market Cap?

The term “crypto market cap is” short for “cryptocurrency market capitalization”, which is a metric used to determine a cryptocurrency’s relative size and value. You can calculate it simply by multiplying a coin’s current price by the total number of coins in circulation. However, you may not even need to do so as many cryptocurrency platforms calculate it for you.

Crypto market cap is often used to rank cryptocurrencies, with a higher market cap generally indicating a more stable and widely accepted cryptocurrency. Conversely, a lower market cap usually signals a more speculative or volatile asset.

Do note, however, that this is just one of the many factors to consider when evaluating a cryptocurrency's potential. Several other factors, such as technology, team, tokenomics, and use cases, should also be considered when researching cryptocurrencies.

Google has removed live price charts for Bitcoin and other cryptocurrencies from its search results

Google has removed live price charts for Bitcoin and other cryptocurrencies from its search results, a feature that had been available since 2018. Users searching for terms like "Bitcoin price" or "Ethereum price" no longer see the familiar charts, although stock and index graphs remain visible.
The change, noticed by users over the weekend, affects most major cryptocurrencies.
However, as of October 15, 2024, searching for "DOGE" still displays Dogecoin's price chart, suggesting the removal may not be comprehensive or final.
Google has not issued an official statement explaining the removal, leaving users to speculate about the reasons behind this decision. Some suggest it could be an algorithm experiment ahead of the upcoming US elections, while others wonder if it's related to regulatory concerns.


Source-Link: Times of India

📊 Market Overview:

BTC : $67129
ETH : $2613.06
BNB : $592.43
SOL : $152.37

⚡ Dominance :

BTC : 55.08 %
ETH : 13.05 %
Stables : 6.43 %

📈 Market Cap :

Total : 2.41T
DeFi : 73.01B
24hr Vol : 97.83B

📊 Market Overview:

BTC : $67636
ETH : $2614.37
BNB : $594.18
SOL : $152.29

⚡ Dominance :

BTC : 55.16 %
ETH : 12.99 %
Stables : 6.38 %

📈 Market Cap :

Total : 2.42T
DeFi : 73.38B
24hr Vol : 103.54B

📊 Market Overview:

BTC : $68240
ETH : $2640.87
BNB : $598.05
SOL : $154.62

⚡ Dominance :

BTC : 55.09 %
ETH : 12.98 %
Stables : 6.34 %

📈 Market Cap :

Total : 2.45T
DeFi : 74.44B
24hr Vol : 103.29B

What is a trading strategy?

A trading plan can also help mitigate financial risk, as it eliminates a lot of unnecessary decisions. While having a trading strategy is not mandatory for trading, it can be life-saving at times. If something unexpected happens in the market (and it will), your trading plan should define how you react – and not your emotions. In other words, having a trading plan in place makes you prepared for the possible outcomes. It prevents you from making hasty, impulsive decisions that often lead to big financial losses.

For instance, a comprehensive trading strategy may include the following:

🟢what asset classes you trade
🟢what setups you take
🟢what tools and indicators you use 
🟢what triggers your entries and exits (your stop loss placement)
🟢what dictates your position sizing
🟢how you document and measure your portfolio performance

➡️What is a stablecoin?

🔴A stablecoin is a digital currency that is pegged to a “stable” reserve asset like the U.S. dollar or gold. Stablecoins are designed to reduce volatility relative to unpegged cryptocurrencies like Bitcoin.

🔴Stablecoins bridge the worlds of cryptocurrency and everyday fiat currency because their prices are pegged to a reserve asset like the U.S. dollar or gold. This dramatically reduces volatility compared to something like Bitcoin and results in a form of digital money that is better suited to everything from day-to-day commerce to making transfers between exchanges. 

🔴The combination of traditional-asset stability with digital-asset flexibility has proven to be a wildly popular idea. Billions of dollars in value have flowed into stablecoins like USD Coin (USDC) USDT as they’ve become some of the most popular ways to store and trade value in the crypto ecosystem.

🟢Swing trading

🔺Swing trading is a type of longer-term trading strategy that involves holding positions for longer than a day but typically not longer than a few weeks or a month. In some ways, swing trading sits in the middle between day trading and trend trading.
Swing traders generally try to take advantage of waves of volatility that take several days or weeks to play out.

🟢Swing traders may use a combination of technical and fundamental factors to formulate their trade ideas. Naturally, fundamental changes may take a longer time to play out, and this is where fundamental analysis comes into play. Even so, chart patterns and technical indicators can also play a major part in a swing trading strategy.

👉Swing trading might be the most convenient active trading strategy for beginners. A significant benefit of swing trading over day trading is that swing trades take longer to play out. Still, they’re short enough so that it’s not too hard to keep track of the trade.

👉This allows traders more time to consider their decisions. In most cases, they have enough time to react to how the trade is unfolding. With swing trading, decisions can be made with less haste and more rationality. On the other hand, day trading often demands fast decisions and speedy execution, which isn’t ideal for a beginner.

📊 Market Overview:

BTC : $67299
ETH : $2473.43
BNB : $583.65
SOL : $175.4

⚡ Dominance :

BTC : 55.62 %
ETH : 12.45 %
Stables : 6.47 %

📈 Market Cap :

Total : 2.39T
DeFi : 69.86B
24hr Vol : 55.29B

Most Tokens Go to Zero in the Long Run

Many crypto tokens are created primarily to benefit a small circle of insiders and VCs. These project's tokenomics focus on enriching their founders rather than delivering long-term value, leading to a lack of genuine commitment to the success in the long period.

Most of these tokens lack intrinsic value and aren't truly connected to the technology they claim to represent. Without real utility or solid fundamentals, they're prone to losing value over time and will eventually become worthless by underperforming market leaders for long enough.

During bull markets, even weak assets can experience significant price increases due to overall market enthusiasm—the "rising tide lifts all boats" effect. This can give the illusion that these tokens are successful when they're simply riding the wave of market optimism

When the market corrects, investors typically shift their capital from speculative, overhyped tokens to solid projects with proven track records. Funds flow back into fundamental blue-chip crypto assets like BTC, ETH, and SOL, which have demonstrated resilience

Types of stablecoins

Today, we’ll tell you about the three main categories of stablecoins.

▪️ Stablecoins backed by fiat currencies

These coins are backed by real-life assets, fiat money, or paper money. Two examples of this stablecoin are Tether (USDT) and USD Coin (USDC). The companies issuing these coins own large reserves to support every issued coin; however, Tether has come under intense scrutiny in the past for this specific issue.

▪️ Stablecoins backed by cryptocurrencies

Some projects are so bold that they’re willing to back their stablecoin with other cryptocurrencies (not real assets or money). For example, a crypto-backed stablecoin with a value of $1 could be supported by a crypto asset worth $2. The logic here is that if the underlying asset’s value were to drop, the stablecoin would still be able to maintain its dollar peg.

The most famous crypto-backed stablecoin is Dai (DAI).

▪️ Algorithmic stablecoins

Algorithmic stablecoins are not backed by assets or fiat currencies, which makes it difficult to understand why or how they’re stablecoins in the first place. As their name indicates, the value of these coins is controlled by computer algorithms. If the stablecoin’s value is pegged to $1 but rises above $1, the code will automatically mint and release more coins into circulation to lower the stablecoin’s value back to $1. Conversely, if the value drops below $1, the algorithm will remove—or burn—coins from circulation to lift the value back up to $1. The amount of coins you hold will change, but they’ll always reflect the value you own.

Please note: Stablecoins are not dollars—they’re cryptocurrencies. Even when dealing with stablecoins, investing in crypto carries inherent risks—case in point the collapse of Terra’s algorithmic stablecoin TerraUSD.

🌐 Beginner's Guide to Cryptocurrency

🔹 What is Cryptocurrency?
A digital or virtual currency secured by cryptography, enabling secure, peer-to-peer transactions without relying on banks.

🔹 Blockchain Basics
Cryptocurrency transactions are recorded on a blockchain, a decentralized ledger ensuring transparency and security.

🔹 Types of Blockchains
1. Public: Open to everyone (e.g., Bitcoin).
2. Private: Restricted access.
3. Hybrid: Combines public and private features.
4. Consortium: Controlled by a group of organizations.

🔹 Buying Crypto
Use trusted exchanges like Coinbase, Binance, and Gemini.

🔹 Crypto Wallets
Essential for storing crypto securely. Options include Phantom, MetaMask, and Ledger.