⚡️The new year often starts with a clean slate, let's refresh our knowledge about the first cryptocurrency

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.

💭Save this information so you don't forget

✨main :- @ALLGATHERING

📈 5 steps to analyze any token

Mostly, investors lose in the crypto market because of poor analysis. People are afraid to make decisions to buy/sell assets, so they try to shift the responsibility to a channel, Influencer or Musk.

Today I will show you the basic rules for your own analysis of any unfamiliar token you are advised to buy 👇

Situation:

You see that Binance is launching a HOOK token on the lunchpad. Suddenly, someone offers you in a PM to buy it on PancakeSwap cheaper and before listing. Very much want to buy, but how not to get on scam?

1️⃣ Always check token on CoinMarketCap

The first thing to do is to go to CMC (CoinMarketCap) and check this token there. If there is no trading there yet and it says ICO, the token is not traded anywhere yet, and you are being offered a SCAM!

2️⃣ Check announcements

The HOOK token page on CMC has a section with the project's twitter/discord. Go to Twitter and look at the announcements from the last week or two. If there is no information there about trading the token on Pancake or other airdrops - you are being offered a scam.

Also you can go to the site (you can find it on CMC as well) and read about the project, what problem it solves, what team and investors it has...

3️⃣ Checking the contract

Let's say the channel offers to buy HOOK token before listing on Binance. In order for you to buy the token, the scammer will post the scam token contract under the guise of a real token and will spell out instructions on how to buy it on Pancake.

NEVER COPY TOKEN CONTRACTS FROM TG CHANNELS.

All official contracts are on CMC, Coingecko, DropsTab, Cryptorank + in whitepaper of each project.

4️⃣ Basically read the whitepaper

The whitepaper is not as scary as everyone tells us. There are a lot of interesting things there. CMC has a link to each project's whitepaper. It's a good idea, a basic flip through the documents, at least to look at the tokenomics of the project (what the token is for, its functions) and what the project does.

😀 See where the token is traded

The most common question in chat is "where can I buy X token?" To answer this question, just go to CMC - type in the token you are interested in - go to "Markets" section. There will be a list of all exchanges (CEX and DEX), where the token is traded.

✅ In conclusion:

💭We often make the mistake of acting too fast when it comes to making money and too slow when it comes to preserving assets.

Always ask yourself: do I want to earn now or not to lose? If you want to make money, act gradually and don't buy shitcoins with all your money!

I hope this information helps you save money, save the information or pass it on to a newbie friend 😀

✨main :- @ALLGATHERING

📈4 tools to understand when to buy and sell 🤔

When the market goes up or down a lot, greed and fear of missing out on profits overtakes us. But only the numbers will show a sobering picture. These 4 tools will tell you where to buy and where to sell 👇

🟢 Liquidations and shorts.

It's helpful to compare the ratio of short to long positions. Usually, if there is a strong bias in one direction, such as 20/80, the market will liquidate those that are outnumbered.

The most transparent data on the proportion of shorts and longs on the GMX exchange. These are the actual open positions. Right now the short/long ratio = 11/89. We can expect a temporary downward squeeze.

🟢Share of stakes and share of BTC

The market is several vessels that pour liquidity (money) between them. Conventionally, 3 types: stabelcoins, BTC and altcoins.

🟠Bitcoin dominance. If BTC's market share grows, money goes to bitcoin. After that, we should expect a spillover of BTC into ETH and altcoins and pamp. Provided bitcoin is growing.

🟠Stablecoin ratio. The higher the share of steibles, the more the market will then be pumped up and pamped. On Tradingview, search for:(USDT+USDC)/TOTAL and get the share of stables.

🟢 Don't miss an important level

When the whole market is rising you can monitor the price and for fear of selling earlier than you planned. Or buy more expensive without waiting for a correction.

Download the CoinMarketCap app on your phone and create an account. Put notifications on key assets in your portfolio or shortlist. I set notifications for price changes of +/- 20% per day and for key levels to buy or sell.

Until the notification goes off don't open the chart. Price doesn't go up/drop from being looked at.

🟢 Find any chart.

Some shitcoins don't have a chart and that's the problem. Where was the high? Was the price at the highs or at the bottom? Several sites that show charts for everything:

🟠Dextools
🟠Dexsccreener
🟠Coingecko Terminal

📌 Save and use

✨main :- @ALLGATHERING

HODL or Speculation? 🤔

Today let's break down 2 opposing strategies for profiting from the market.

🟢HODL

You choose an asset, such as ETH, and start buying regularly once a month/week/day. You don't pay attention to the price, the main thing is to buy regularly and for the same amount.

🔝 Pros:
Analysts at JPMorgan calculated that over the past 20 years, the average investor's return has been 2.9% and has only outpaced inflation. While the SP500 was growing at 7.9% a year. Much more profitable to buy and forget.

😀 Cons:
- Discipline (forgot to buy)
- Emotions (scared to buy when things go down)
- Fear of news (Bitcoin scams, Ethereum gets regulated...)

This is why not everyone can stick with a DCA or HODL strategy.

🟢Speculation

Trying to buy cheaper and sell higher, hunting for the best entry and exit points.

Speculators use many strategies to measure the degree of mood in the market:

- Fear index/crowd mood: buy when it's bleeding, sell on euphoria.
- Technical analysis: buy under a 200-day MA.
- On-chain metrics.
- And even lunar phases ;)

🔝 Pros:
You can preserve capital during market declines and outperform the market during gains.

😀 Cons:
The market is often prone to giving false signals, fakes, manipulation, etc. Emotions can trick you into selling during a depressed market. And this is the best entry point.

✅Truth in the middle

Instead of trying to only HODL or only speculate, create 2 portfolios:

1. Long term for 5-10 years with fundamental projects. For now it's BTC and ETH. Invest regularly, small amounts on a buy&forget basis. Sid-phrase just do not forget.
2. Portfolio for speculation on trends, altcoins and any ideas.

💭There is no perfect strategy. Discipline, experience, persistence and luck is the Grail.

✨main :- @ALLGATHERING

📈 How to analyze tokenomics and earn even more?

Tokenomics is the economics of tokens and their application in a project. By understanding tokenomics you can predict where the best entry and exit point will be.

There are 2 types of tokenomics: inflationary and deflationary:

✅ Deflationary - the number of tokens in the supply decreases over time. This usually happens by burning (destroying) a fraction of the tokens. Or by redeeming (buyback) tokens from the market and sending them to a non-existent address.

Example: BNB is a deflationary token with limited supply. A total of 200 million BNBs are issued. Once a quarter, a portion of the tokens are burned. This decreases the BNB issue and the value of one coin becomes higher.

🔼 Pros:
+ Increase in token value. If demand goes up and supply goes down, the price goes up.
+ Motivation to hold the token. Decreasing supply encourages holders to keep holding the token because the price will rise in the long run.
+ Stable economy. No one will print an infinite number of tokens by depreciating them.

🔽 Minuses:
- Reduced turnover. The higher the deflation - the more people tend to accumulate rather than spend. This hurts the economy of the project.
- There is no incentive to develop. Destroyed tokens could be distributed among the most active part of the community and stimulate various activities in the project.

✅ Inflationary - the total number of tokens increases over time. New tokens are issued through mining (BTC), stacking (ETH), farming (OSMO) and other activities.

Example: Dogecoin has an inflationary model. New coins are infinitely printed.

🔼 Pros:
+ Incentives for project activity. For example, you can earn OP tokens for project activity on Optimism.
+ Rewards for early users.
+ Liquidity poaching. Projects can offer high % on staking through rewards in their tokens.

🔽 Minuses:
- Willingness to sell the token. High inflation can cause the token to be sold all the time.
- Impairment of the asset. Increased supply leads to a decrease in the value of a single coin.

✅ Conclusion

As you can see both models have their advantages and disadvantages. In the long run, deflationary tokens will have more value. In the short term, during a project's HYIP, inflationary tokens will have more value.

💭Ultimately, the success of the project will depend on a combination of factors: tokenomics, team, marketing and market conditions.

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✨main :- @ALLGATHERING

📈What is cryptocurrency staking?

The U.S. SEC wants to ban staking. Let's refresh our knowledge of this process and think about what the regulator can and cannot ban🤔

😀Staking is an alternative to mining in cryptocurrencies on the Proof-of-Stake algorithm, where a certain number of coins are blocked in order to qualify to participate in transaction verification. As with mining, the blockchain relies on rewards in network tokens to keep it running📊

In POS cryptocurrencies, validators are responsible for verifying transactions and creating new blocks in the blockchain by placing their coins on the stack. These can be either the validator's own coins or funds received from other users.

For example, to create an Ethereum stack, a minimum of 32 ETH must be blocked. This amount may be too high or the user doesn't want to set up a node and check transactions, i.e. be a full-fledged validator. In that case, you can transfer your ETH to another validator, who will split the reward with you. And the transfer process itself can take place through an intermediary, such as a cryptocurrency exchange or DeFi service.

In this case, staking actually turns into a form of passive income, where you transfer cryptocurrency to a third party and get a percentage for it. It works just like a deposit in a bank📈

😀The SEC wants to ban staking because from their point of view it is an illegal financial service that no one has been licensed for. Banks have a license for deposits, but crypto exchanges don't have a license for staking

Based on this logic, the regulator could require all centralized crypto exchanges to stop providing staking services until such activities are legally regulated.

✅Banning staking on DeFi is much more difficult, but it is theoretically possible. The practice of regulating DEX exchanges exists and has been used. Authorities simply prosecute the developer of the DeFi protocol, and he either goes to jail or shuts down his service.

💭But what the regulator can't prohibit is to engage in cryptocurrency stacking themselves, directly interacting with the blockchain.

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✨main :- @ALLGATHERING

📈 What kind of stabelcoins to keep assets in?

The SEC essentially destroyed BUSD 💰 in one day. The token is still trading, the binding is in place, but it has no future.

Which stabelcoins are safe to keep money in? 🤔

✅Centralized:

🟢 USDT 💰 - launched in 2014 by issuer Tether together with Bitfinex. Now has the largest capitalization among stabelcoins.

Transparency: Secured by cash and short-term bonds (82%), secured loans (8%) and corporate bonds (5%).

Risks: Audited by companies NOT in the Big Four.

🟢USDC 💰 - launched in 2018 by Circle.

Transparency: Secured by U.S. short-term securities and cachet.

Risks: Under U.S. jurisdiction. Could repeat the fate of BUSD.

✅Decentralized:

🟢 DAI 💰 is an Ethereum-based staplecoin with super-securities whose issuance is controlled by the creator of the DAO.

Transparency: You can print 100 DAI against a pledge of $150 in ETH. If the value of ETH falls below $100, the pledge is liquidated. In this way, a bind is maintained.

Risks: DAIs are basically backed by USDC. If something happens to USDC, it will affect DAI.

🟢 FRAX is partially collateralized (mostly USDC) and partially stabilized algorithmically.

Transparency: The FRAX is collateralized by the USDC and the collateral ratio depends on the market price of the FRAX. If FRAX trades above the $1 peg, the protocol reduces the FRAX monetary collateralization ratio for USDC. If FRAX trades below $1, the protocol will increase the collateral ratio to prevent a Terra UST "death spiral" scenario.

Risks: It is unclear how Stablecoin will behave when scaled up.

✅ Conclusion:

💭USDT, USDC and DAI can be held for diversification. Let's see how the new Aave and Curve Finance stablecoins behave, but in the current situation it is better not to experiment with new stablecoins

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✨main :- @ALLGATHERING

📈 How do I know if the tokens will continue to grow or not?

One of the indicators to determine the strength of the market is the reaction of tokens to the news. The weaker the reaction to the news, the weaker the market. And vice versa📊

✅The latest news and altcoin reaction:

😀 Binance mines steblecoin TUSD → steblecoin TRU +108%.
😀GNS listing on Binance → GNS +41%
😀Guild Games raised 13 million → YGG +25%
😀 Filecoin will launch smart contracts → FIL +22%

💭Assets reacted twice as weakly to similar news in the summer. Although market momentum persists

✨main :- @ALLGATHERING

📈GameFi: alive or all is lost?!

It is no secret that it is thanks to games that a large number of people come to the world of cryptocurrencies. Through quests, trading or other mechanisms, GameFi allows players to earn digital assets for their efforts in the game📈

🟢The introduction of NFT and the P2E model - play to earn - changed the market dramatically in 2021-22, which was a real boom. At the very end of November 2021, the total market capitalization of all GameFi project tokens reached its ATH of $36 billion.

🟢The decline of the entire crypto market couldn't help but affect GameFi as well. In November 2022, funding for this sector dropped 69% to a record low of $60 million, and 62% of GameFi investors lost more than half of their 2022 profits.

🟢Nevertheless, according to MarketsandMarkets' analysis, the blockchain game market will grow from $4.6 billion in 2022 to $65.7 billion by 2027. Currently, only 31% of all GameFi projects are playable, while the rest are under investment and development. This points to the enormous potential the industry has regardless of market sentiment.

✅Our new infographic gives you an overview of the GameFi-project ecosystem.

Do you guys think P2E games will be able to replace existing web2 games, like CS:GO and Dota?😀

👍 - yes
😀 - no

📈

✨main :- @ALLGATHERING

📈Where is the cheapest place to withdraw crypto? 🤔

If you're often looking for the cheapest way to withdraw crypto from an exchange - use Coinmarketfees

💭In addition to comparing withdrawal fees from different exchanges, you can also compare fees in different networks📊

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✨main :- @ALLGATHERING