How does bitcoin work? 🤔
The idea behind BTC 💰 by its creator Satoshi Nakamoto was to build a payment system without intermediaries, where the payments take place directly between users (sender and receiver) 📥
Each BTC transaction in the main network passes through 7 stages:
▪️ Selection of the recipient, transfer amount and commission.
▪️ The sender signs the transaction with a private key and sends it.
▪️ Nodes checks the eligibility of the transaction and sends it to the miners.
▪️ The miners add the transaction to the block.
▪️ The miners calculate the hash of the new block.
▪️ The new block is verified and added to the blockchain.
▪️ Nodes add the new block to their copy of the blockchain.
Knowing the algorithm gives the understanding that:
▪️ Nodes can only skip a transaction if you don't have the right amount in BTC.
▪️ Miners can delay processing a transaction, but are unable to cancel it.
The idea behind BTC 💰 by its creator Satoshi Nakamoto was to build a payment system without intermediaries, where the payments take place directly between users (sender and receiver) 📥
Each BTC transaction in the main network passes through 7 stages:
▪️ Selection of the recipient, transfer amount and commission.
▪️ The sender signs the transaction with a private key and sends it.
▪️ Nodes checks the eligibility of the transaction and sends it to the miners.
▪️ The miners add the transaction to the block.
▪️ The miners calculate the hash of the new block.
▪️ The new block is verified and added to the blockchain.
▪️ Nodes add the new block to their copy of the blockchain.
Knowing the algorithm gives the understanding that:
▪️ Nodes can only skip a transaction if you don't have the right amount in BTC.
▪️ Miners can delay processing a transaction, but are unable to cancel it.
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🚨 How not to lose all your money on a scam?
Experience shows that scammers evolve along with the market. Newcomers continue to fall into the traps of scammers. And I don't stop telling you how to avoid being scammed in the crypto market, particularly in telegram.
Types of scams via telegram and social networks 👇
❌ Fake token
A scammer buys a news/analytics channel with normal content. Then buys ads in the top channels and under the fresh audience publishes signals urging to buy token X before listing on the main exchanges.
Initially, the token is fake. The contract spells out a feature that prohibits selling the token. That's why the price goes up forever, the scammer gets richer, and the hamsters get poorer.
✅ Conclusion: Before buying, check the token on CoinMarketCap, analyze its tweet. Do NOT buy tokens through contracts published in channels/chats. All official contracts are on CMC or Coingecko.
❌ Scam Telegram Ads
Telegram Ads are ads that pop up at the bottom of the channel. Only Telegram is responsible for these ads. Channel admins have no influence on the quality of these ads and get nothing out of it.
Sometimes scammers advertise their channels through Telegram Ads, showing their successful signals. And after a while, they skam subscribers through trust management (TMA) or skam tokens.
✅ Conclusion: Do not trust those channels which offer to deposit money somewhere, buy signals or give money to a trust.
❌ Phishing links in official social networks
There have been many cases where discord or twitter of big projects have been hacked and posted phishing links to airdrop or mint NFT. Or scammers have created similar social networks and offered to get free tokens/NFT on the site right now.
After connecting to the site and signing the transaction, the scammer would gain access to your wallet. These are far from isolated cases.
✅ Conclusion: Always have several wallets. A primary one for connecting to trusted sites (OpenSea, Uniswap) and storing liquid assets. And secondary - for activities, dubious projects and riserch.
💭No one is immune to scammers. To lose less, use the rule of thumb: "Go slower when it comes to making money, and faster when you want to keep your assets.
Experience shows that scammers evolve along with the market. Newcomers continue to fall into the traps of scammers. And I don't stop telling you how to avoid being scammed in the crypto market, particularly in telegram.
Types of scams via telegram and social networks 👇
❌ Fake token
A scammer buys a news/analytics channel with normal content. Then buys ads in the top channels and under the fresh audience publishes signals urging to buy token X before listing on the main exchanges.
Initially, the token is fake. The contract spells out a feature that prohibits selling the token. That's why the price goes up forever, the scammer gets richer, and the hamsters get poorer.
✅ Conclusion: Before buying, check the token on CoinMarketCap, analyze its tweet. Do NOT buy tokens through contracts published in channels/chats. All official contracts are on CMC or Coingecko.
❌ Scam Telegram Ads
Telegram Ads are ads that pop up at the bottom of the channel. Only Telegram is responsible for these ads. Channel admins have no influence on the quality of these ads and get nothing out of it.
Sometimes scammers advertise their channels through Telegram Ads, showing their successful signals. And after a while, they skam subscribers through trust management (TMA) or skam tokens.
✅ Conclusion: Do not trust those channels which offer to deposit money somewhere, buy signals or give money to a trust.
❌ Phishing links in official social networks
There have been many cases where discord or twitter of big projects have been hacked and posted phishing links to airdrop or mint NFT. Or scammers have created similar social networks and offered to get free tokens/NFT on the site right now.
After connecting to the site and signing the transaction, the scammer would gain access to your wallet. These are far from isolated cases.
✅ Conclusion: Always have several wallets. A primary one for connecting to trusted sites (OpenSea, Uniswap) and storing liquid assets. And secondary - for activities, dubious projects and riserch.
💭No one is immune to scammers. To lose less, use the rule of thumb: "Go slower when it comes to making money, and faster when you want to keep your assets.
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Cryptocurrency and its key characteristics
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments (such as the US dollar or Euro), cryptocurrencies operate on decentralized technology called blockchain. Key characteristics of cryptocurrencies include:
1. Decentralization: Cryptocurrencies are not controlled by any central authority, like a government or a bank. Instead, they rely on a distributed ledger (blockchain) maintained by a network of computers (nodes).
2. Security: Cryptography is used to secure transactions and control the creation of new units. This makes it difficult for anyone to counterfeit or manipulate the currency.
3. Transparency: Transactions made with cryptocurrencies are recorded on a public ledger, which is accessible to anyone. This transparency helps prevent fraud.
4. Digital Nature: Cryptocurrencies exist only in digital form and have no physical counterparts like coins or banknotes.
5. Anonymity: While transactions are recorded on the blockchain, the identity of the participants can be pseudonymous, providing a level of privacy.
Bitcoin, created by an anonymous entity known as Satoshi Nakamoto in 2009, was the first cryptocurrency and remains the most well-known. Since then, thousands of other cryptocurrencies have been created, each with its unique features and purposes. Cryptocurrencies are often used for various purposes, including digital payments, investments, and as a means of transferring value across borders. They have gained significant attention and have a complex and rapidly evolving ecosystem.
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments (such as the US dollar or Euro), cryptocurrencies operate on decentralized technology called blockchain. Key characteristics of cryptocurrencies include:
1. Decentralization: Cryptocurrencies are not controlled by any central authority, like a government or a bank. Instead, they rely on a distributed ledger (blockchain) maintained by a network of computers (nodes).
2. Security: Cryptography is used to secure transactions and control the creation of new units. This makes it difficult for anyone to counterfeit or manipulate the currency.
3. Transparency: Transactions made with cryptocurrencies are recorded on a public ledger, which is accessible to anyone. This transparency helps prevent fraud.
4. Digital Nature: Cryptocurrencies exist only in digital form and have no physical counterparts like coins or banknotes.
5. Anonymity: While transactions are recorded on the blockchain, the identity of the participants can be pseudonymous, providing a level of privacy.
Bitcoin, created by an anonymous entity known as Satoshi Nakamoto in 2009, was the first cryptocurrency and remains the most well-known. Since then, thousands of other cryptocurrencies have been created, each with its unique features and purposes. Cryptocurrencies are often used for various purposes, including digital payments, investments, and as a means of transferring value across borders. They have gained significant attention and have a complex and rapidly evolving ecosystem.
Ways to earn from cryptocurrencies
1. Buying and Holding (HODLing): This involves purchasing cryptocurrencies and holding onto them for an extended period, hoping their value will increase over time. If the price goes up, you can sell them for a profit. This is similar to traditional investing in stocks or commodities.
2. Trading: Cryptocurrency trading involves buying and selling cryptocurrencies on various exchanges to profit from price fluctuations. Traders use technical and fundamental analysis to make informed decisions. Day trading, swing trading, and arbitrage are common trading strategies.
3. Mining: Mining involves using computational power to solve complex mathematical problems on a blockchain network. Miners validate transactions and add new blocks to the blockchain in exchange for cryptocurrency rewards. While it can be profitable, it often requires significant hardware and energy investments.
4. Staking: Some cryptocurrencies offer staking as a way to earn rewards. Staking involves holding a certain amount of a cryptocurrency in a wallet and participating in network activities, such as validating transactions. In return, you receive additional coins as rewards.
5. Dividends and Interest: Certain cryptocurrencies, like some stablecoins, offer interest or dividends to holders. These earnings are typically generated from lending or staking the assets.
6. Airdrops and Forks: Occasionally, cryptocurrency projects distribute free tokens to existing holders (airdrops) or undergo network upgrades (forks) that create new cryptocurrencies. Holding the original cryptocurrency can result in receiving these new tokens.
7. Yield Farming and Liquidity Provision: In decentralized finance (DeFi), users can earn by providing liquidity to liquidity pools or participating in yield farming programs. They earn rewards in the form of tokens or fees for their contributions.
8. Freelancing and Payments: Some individuals accept cryptocurrencies as payment for goods or services they provide, like freelancers and online businesses.
9. Initial Coin Offerings (ICOs) and Token Sales: In the past, some people earned by investing in ICOs or token sales of new cryptocurrency projects at an early stage. However, these investments come with high risk and regulatory scrutiny.
10. NFTs (Non-Fungible Tokens): Creating, buying, and selling NFTs, which represent unique digital assets like art, collectibles, or virtual real estate, can be a way to earn income in the cryptocurrency space.
It's important to note that the cryptocurrency market is highly volatile and speculative, and investing in cryptocurrencies carries risks. Before getting involved, it's advisable to do thorough research, understand the risks, and consider your risk tolerance and investment goals. Additionally, be aware of the legal and tax implications of cryptocurrency earnings in your jurisdiction.
1. Buying and Holding (HODLing): This involves purchasing cryptocurrencies and holding onto them for an extended period, hoping their value will increase over time. If the price goes up, you can sell them for a profit. This is similar to traditional investing in stocks or commodities.
2. Trading: Cryptocurrency trading involves buying and selling cryptocurrencies on various exchanges to profit from price fluctuations. Traders use technical and fundamental analysis to make informed decisions. Day trading, swing trading, and arbitrage are common trading strategies.
3. Mining: Mining involves using computational power to solve complex mathematical problems on a blockchain network. Miners validate transactions and add new blocks to the blockchain in exchange for cryptocurrency rewards. While it can be profitable, it often requires significant hardware and energy investments.
4. Staking: Some cryptocurrencies offer staking as a way to earn rewards. Staking involves holding a certain amount of a cryptocurrency in a wallet and participating in network activities, such as validating transactions. In return, you receive additional coins as rewards.
5. Dividends and Interest: Certain cryptocurrencies, like some stablecoins, offer interest or dividends to holders. These earnings are typically generated from lending or staking the assets.
6. Airdrops and Forks: Occasionally, cryptocurrency projects distribute free tokens to existing holders (airdrops) or undergo network upgrades (forks) that create new cryptocurrencies. Holding the original cryptocurrency can result in receiving these new tokens.
7. Yield Farming and Liquidity Provision: In decentralized finance (DeFi), users can earn by providing liquidity to liquidity pools or participating in yield farming programs. They earn rewards in the form of tokens or fees for their contributions.
8. Freelancing and Payments: Some individuals accept cryptocurrencies as payment for goods or services they provide, like freelancers and online businesses.
9. Initial Coin Offerings (ICOs) and Token Sales: In the past, some people earned by investing in ICOs or token sales of new cryptocurrency projects at an early stage. However, these investments come with high risk and regulatory scrutiny.
10. NFTs (Non-Fungible Tokens): Creating, buying, and selling NFTs, which represent unique digital assets like art, collectibles, or virtual real estate, can be a way to earn income in the cryptocurrency space.
It's important to note that the cryptocurrency market is highly volatile and speculative, and investing in cryptocurrencies carries risks. Before getting involved, it's advisable to do thorough research, understand the risks, and consider your risk tolerance and investment goals. Additionally, be aware of the legal and tax implications of cryptocurrency earnings in your jurisdiction.
Programming can be used with crypto in a variety of ways. Here are a few examples:
Developing cryptocurrency wallets. Cryptocurrency wallets are used to store, send, and receive cryptocurrencies. Programmers can develop new types of wallets with improved features and security.
Creating cryptocurrency exchanges. Cryptocurrency exchanges allow users to buy, sell, and trade cryptocurrencies. Programmers can develop new exchanges with lower fees, faster transaction times, and a wider selection of cryptocurrencies.
Building decentralized applications (dApps). DApps are applications that run on a blockchain network and are not controlled by any single entity. Programmers can develop dApps for a variety of purposes, such as gaming, finance, and social media.
Writing smart contracts. Smart contracts are self-executing contracts that are stored on a blockchain network. Programmers can write smart contracts to automate a variety of transactions, such as financial agreements and supply chain management.
Developing blockchain-based tools and services. Programmers can also develop a variety of other tools and services for the blockchain industry, such as block explorers, analytics tools, and security solutions.
Here are some specific examples of programming languages and tools that are commonly used in crypto development:
Programming languages: Python, Solidity, C++, Go, Rust
Tools and frameworks: Truffle, Hardhat, Remix, Metamask, Etherscan
If you are interested in learning more about how to use programming with crypto, there are a number of resources available online and in libraries. There are also a number of online courses and bootcamps that can teach you the skills you need to become a crypto developer.
Here are some tips for getting started:
Choose a programming language. Start by learning one of the programming languages that is commonly used in crypto development.
Learn about blockchain technology. It is important to have a good understanding of blockchain technology before you can start developing crypto applications.
Find a community. There are a number of online and offline communities where you can connect with other crypto developers and learn from them.
Start building. The best way to learn is by doing. Start building simple crypto applications and gradually work your way up to more complex projects.
With hard work and dedication, you can learn to use programming to build innovative and useful crypto applications.
Developing cryptocurrency wallets. Cryptocurrency wallets are used to store, send, and receive cryptocurrencies. Programmers can develop new types of wallets with improved features and security.
Creating cryptocurrency exchanges. Cryptocurrency exchanges allow users to buy, sell, and trade cryptocurrencies. Programmers can develop new exchanges with lower fees, faster transaction times, and a wider selection of cryptocurrencies.
Building decentralized applications (dApps). DApps are applications that run on a blockchain network and are not controlled by any single entity. Programmers can develop dApps for a variety of purposes, such as gaming, finance, and social media.
Writing smart contracts. Smart contracts are self-executing contracts that are stored on a blockchain network. Programmers can write smart contracts to automate a variety of transactions, such as financial agreements and supply chain management.
Developing blockchain-based tools and services. Programmers can also develop a variety of other tools and services for the blockchain industry, such as block explorers, analytics tools, and security solutions.
Here are some specific examples of programming languages and tools that are commonly used in crypto development:
Programming languages: Python, Solidity, C++, Go, Rust
Tools and frameworks: Truffle, Hardhat, Remix, Metamask, Etherscan
If you are interested in learning more about how to use programming with crypto, there are a number of resources available online and in libraries. There are also a number of online courses and bootcamps that can teach you the skills you need to become a crypto developer.
Here are some tips for getting started:
Choose a programming language. Start by learning one of the programming languages that is commonly used in crypto development.
Learn about blockchain technology. It is important to have a good understanding of blockchain technology before you can start developing crypto applications.
Find a community. There are a number of online and offline communities where you can connect with other crypto developers and learn from them.
Start building. The best way to learn is by doing. Start building simple crypto applications and gradually work your way up to more complex projects.
With hard work and dedication, you can learn to use programming to build innovative and useful crypto applications.
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What is Web3?
Web3 is the next generation of the internet, powered by blockchain technology. It is more decentralized, open, and secure than the current web where:
Users own their data and control their online experiences.
Applications are decentralized and run on a blockchain network.
Transactions are secure and transparent.
New possibilities are emerging for social media, finance, and more.
Web3 is the next generation of the internet, powered by blockchain technology. It is more decentralized, open, and secure than the current web where:
Users own their data and control their online experiences.
Applications are decentralized and run on a blockchain network.
Transactions are secure and transparent.
New possibilities are emerging for social media, finance, and more.
Introduction to Cryptology, IIT Roorkee
🆓 Free Online Course
💻 20 Lecture Videos
⏰ 4 Modules
🏃♂️ Self paced
Teacher 👨🏫 : Dr. Sugata Gangopadhyay
🔗 https://nptel.ac.in/courses/106107155
🆓 Free Online Course
💻 20 Lecture Videos
⏰ 4 Modules
🏃♂️ Self paced
Teacher 👨🏫 : Dr. Sugata Gangopadhyay
🔗 https://nptel.ac.in/courses/106107155
Do not buy online courses from Gurus/Influencers to Learn how to trade
You can learn for free inside Binance (Binance Academy)
There are plenty of free resources on YouTube, you should learn what is Technical and Fundamental Analysis, Futures and Spot trading, Leverage and Risk Management before you start trading.
After you learn these concepts you should trade at least for 2 months using tools like TradingView. After 2 months and if you have positive results you can then start trading but keep in mind that real trading involves other variables like psycological behaviour.
You can learn for free inside Binance (Binance Academy)
There are plenty of free resources on YouTube, you should learn what is Technical and Fundamental Analysis, Futures and Spot trading, Leverage and Risk Management before you start trading.
After you learn these concepts you should trade at least for 2 months using tools like TradingView. After 2 months and if you have positive results you can then start trading but keep in mind that real trading involves other variables like psycological behaviour.
📈📉 CRYPTOCURRENCY INVESTING: TIPS FOR NAVIGATING THE WORLD OF BLOCKCHAIN TECHNOLOGY¦
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1. Education: Always start by educating yourself about cryptocurrencies, blockchain technology, and the projects you're interested in. Read whitepapers, follow news and updates, and join online forums and communities to stay informed.
2. Diversify your portfolio: Don't put all your money into one cryptocurrency. Spread your investments across multiple coins and projects to reduce risk.
3. Use secure wallets: Store your cryptocurrencies in secure wallets, such as hardware wallets or reputable software wallets, to protect your assets from hacks and theft.
4. Strong passwords: Use strong, unique passwords for your exchange accounts and wallets, and enable two-factor authentication (2FA) for added security.
5. Research exchanges: Before using a cryptocurrency exchange, do your research to ensure it's reputable, secure, and offers the trading pairs you're interested in.
6. Avoid FOMO: Fear of missing out (FOMO) can lead to impulsive decisions. Make informed decisions based on research and analysis rather than emotions.
7. Have a strategy: Develop a clear investment strategy and stick to it. This could be long-term holding, day trading, or a mix of both.
8. Take profits: When your investments experience significant gains, consider taking some profits. This will help you secure returns and potentially reinvest in other opportunities.
9. Risk management: Only invest what you can afford to lose, and be prepared to see the value of your investments fluctuate. Cryptocurrency markets can be volatile.
10. Stay updated: Follow industry news, updates, and trends to stay informed about the latest developments and potential opportunities.
11. Tax regulations: Understand the tax implications of your cryptocurrency investments in your jurisdiction and ensure you're compliant with regulations.
12. Avoid scams: Be cautious of ICOs (initial coin offerings), pump-and-dump schemes, and other scams. If something sounds too good to be true, it probably is.
13. Learn technical analysis: Understanding the basics of technical analysis can help you make more informed decisions when trading cryptocurrencies.
14. Network: Join online forums, attend conferences, and engage with the crypto community to learn from others, share insights, and discover new opportunities.
15. Track your investments: Use portfolio tracking tools to monitor the performance of your investments and make adjustments as needed.
16. Stay disciplined: Stick to your investment strategy and avoid making emotional decisions based on short-term market fluctuations.
17. Understand DeFi: Learn about decentralized finance (DeFi) and explore ways to earn passive income through staking, yield farming, or lending your cryptocurrencies.
18. NFTs: Research non-fungible tokens (NFTs) and their potential use cases and investment opportunities.
19. Consider dollar-cost averaging: This investment strategy involves regularly investing a fixed amount in cryptocurrencies, regardless of the market price, to reduce the impact of volatility.
20. Backup and recovery: Keep a secure backup of your wallet's private keys or recovery phrases, and ensure you know how to access your funds if something happens to your wallet or device.
[20]
1. Education: Always start by educating yourself about cryptocurrencies, blockchain technology, and the projects you're interested in. Read whitepapers, follow news and updates, and join online forums and communities to stay informed.
2. Diversify your portfolio: Don't put all your money into one cryptocurrency. Spread your investments across multiple coins and projects to reduce risk.
3. Use secure wallets: Store your cryptocurrencies in secure wallets, such as hardware wallets or reputable software wallets, to protect your assets from hacks and theft.
4. Strong passwords: Use strong, unique passwords for your exchange accounts and wallets, and enable two-factor authentication (2FA) for added security.
5. Research exchanges: Before using a cryptocurrency exchange, do your research to ensure it's reputable, secure, and offers the trading pairs you're interested in.
6. Avoid FOMO: Fear of missing out (FOMO) can lead to impulsive decisions. Make informed decisions based on research and analysis rather than emotions.
7. Have a strategy: Develop a clear investment strategy and stick to it. This could be long-term holding, day trading, or a mix of both.
8. Take profits: When your investments experience significant gains, consider taking some profits. This will help you secure returns and potentially reinvest in other opportunities.
9. Risk management: Only invest what you can afford to lose, and be prepared to see the value of your investments fluctuate. Cryptocurrency markets can be volatile.
10. Stay updated: Follow industry news, updates, and trends to stay informed about the latest developments and potential opportunities.
11. Tax regulations: Understand the tax implications of your cryptocurrency investments in your jurisdiction and ensure you're compliant with regulations.
12. Avoid scams: Be cautious of ICOs (initial coin offerings), pump-and-dump schemes, and other scams. If something sounds too good to be true, it probably is.
13. Learn technical analysis: Understanding the basics of technical analysis can help you make more informed decisions when trading cryptocurrencies.
14. Network: Join online forums, attend conferences, and engage with the crypto community to learn from others, share insights, and discover new opportunities.
15. Track your investments: Use portfolio tracking tools to monitor the performance of your investments and make adjustments as needed.
16. Stay disciplined: Stick to your investment strategy and avoid making emotional decisions based on short-term market fluctuations.
17. Understand DeFi: Learn about decentralized finance (DeFi) and explore ways to earn passive income through staking, yield farming, or lending your cryptocurrencies.
18. NFTs: Research non-fungible tokens (NFTs) and their potential use cases and investment opportunities.
19. Consider dollar-cost averaging: This investment strategy involves regularly investing a fixed amount in cryptocurrencies, regardless of the market price, to reduce the impact of volatility.
20. Backup and recovery: Keep a secure backup of your wallet's private keys or recovery phrases, and ensure you know how to access your funds if something happens to your wallet or device.
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What are the different types of stablecoins?
You’re probably familiar with the most popular “crypto dollar,” Tether, or USDT, but there are tons of other stablecoins besides Tether. They are categorized into four types:
▪️ Secured by fiat and securities
This type of stablecoin is backed by real currencies—e.g., the United States dollar at a 1:1 ratio. A clear example is USDT and, say, USDC. These coins are backed by real money and securities.
▪️ Backed by commodities
These coins use commodities, such as gold, real estate, and metals, to support their price
An example is Paxos Gold (PAXG) or Tether Gold (xAUT); their price is pegged to gold, and you can trade gold directly on the blockchain (keeping in mind the risks, of course).
▪️ Cryptocurrency-backed
As the name suggests, these stablecoins use other cryptocurrencies as collateral.
For example, the DAI stablecoin is not backed by fiat at all and relies on other cryptocurrencies as collateral.
▪️ Algorithmic stablecoins
The stability of stablecoins USDD, FRAX, and USDX is controlled by programs, algorithms that control the supply and circulation of tokens on the market.
So, there are many other stable coins besides USDT. But, of course, Tether remains the most popular solution on the market.
You’re probably familiar with the most popular “crypto dollar,” Tether, or USDT, but there are tons of other stablecoins besides Tether. They are categorized into four types:
▪️ Secured by fiat and securities
This type of stablecoin is backed by real currencies—e.g., the United States dollar at a 1:1 ratio. A clear example is USDT and, say, USDC. These coins are backed by real money and securities.
▪️ Backed by commodities
These coins use commodities, such as gold, real estate, and metals, to support their price
An example is Paxos Gold (PAXG) or Tether Gold (xAUT); their price is pegged to gold, and you can trade gold directly on the blockchain (keeping in mind the risks, of course).
▪️ Cryptocurrency-backed
As the name suggests, these stablecoins use other cryptocurrencies as collateral.
For example, the DAI stablecoin is not backed by fiat at all and relies on other cryptocurrencies as collateral.
▪️ Algorithmic stablecoins
The stability of stablecoins USDD, FRAX, and USDX is controlled by programs, algorithms that control the supply and circulation of tokens on the market.
So, there are many other stable coins besides USDT. But, of course, Tether remains the most popular solution on the market.
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Cryptocurrency, Bitcoin, ICO, blockchain, mining... When hearing those words just a couple of years back, people used to say:
-It’s a scam, financial bubble
-There is no point in investing, the price is too low
-No country will ever recognize cryptocurrency
-It’s an obvious pyramid scheme
-It’s a sort of amusement for nerds
-It's not serious, it will collapse in a couple of years.
Until recently, cryptocurrency had been viewed as a sort of amusement for a handful of the chosen who bought and sold something and believed that a new currency would make a hit one day!
You surely were also among those people who did not take Bitcoin and cryptocurrency seriously, but the current events gag even the biggest skeptics.
-It’s a scam, financial bubble
-There is no point in investing, the price is too low
-No country will ever recognize cryptocurrency
-It’s an obvious pyramid scheme
-It’s a sort of amusement for nerds
-It's not serious, it will collapse in a couple of years.
Until recently, cryptocurrency had been viewed as a sort of amusement for a handful of the chosen who bought and sold something and believed that a new currency would make a hit one day!
You surely were also among those people who did not take Bitcoin and cryptocurrency seriously, but the current events gag even the biggest skeptics.
👍2❤1