Banking vs Crypto

 


Banking vs Crypto how does it work?

1- BANK 

When someone makes a deposit in their bank account, that money is no longer the depositor’s property, not directly. The bank now owns it, and in return, you receive a bank account where you can withdraw your money. In theory, the customer should have access to their deposit amount on demand but that is not true. The bank doesn't hold on to the full amount, only a fraction normally from 3% to 10% and the rest is loaned or used for operations.

2- Bitcoin

Contrary to the system, we have Bitcoin, which is a decentralized digital currency that introduces a very different economic framework. A distributed network of nodes runs Bitcoin and its data is protected by cryptographic proofs and constantly recorded on a public ledger called the blockchain. There is no need for a bank or any kind of intermediary with Bitcoin and no such thing as fractional reserve. Also, the issuance of Bitcoin is finite, it is simply not possible to generate coins from thin air like traditional banking. You have a fixed amount and it cannot be modified ever.

What is Testnet?

Testnet

No matter what the type of project is in the field of software development, we need to run it at a local network to test whether it is working perfectly or not.

A similar thing is with the Cryptocurrency world where developers develop their projects and check out the working ability of performance at the TestNet network.

At the testnet network, they check that how efficiently it is working and how it is different from another programming, and how many levels of security it can pass, so that everyone can use it without any tension of hack or attack at the network.


What is MainNet?

In some cases, Mainnet is known as a live network also. After all the trials at TestNet network, The team of #coin launches his project at MainNet for the use, where people can use the coin to mine, stacking, and transaction easily.

So in simple word MainNet is the main network where Blockchain data program actually runs.


Difference between Testnet and Mainnet

We can’t transfer coin from Testnet to MainNet or vice versa. In simple words we can say they can’t intermix with each other even both are running at the same technology and the same algorithm with the same name.

Binance Exchange

List Of Abbreviations Commonly Used In Cryptocurrency Trading



In every industry, there is a special language to make communication easy and efficient. Those abbreviations have a great impact on the industry, lets understand what they are.

List of abbreviations commonly used in cryptocurrency trading and  CryptoSpace which are most helpful for the community:

  • Altcoins: Alternate cryptocurrency that is any cryptocurrency other than bitcoin
  • Bag Holder: A person who buys and hold coins in large quantity hoping to make good profits in the future.
  • Bear/Bearish: Negative price movement
  • BTFD: Buy The Fucking Dip
  • Bull/Bullish= Positive price movement
  • DILDO: Long green or red candles
  • Dump: To Sell off a coin
  • DYOR: Do Your Own Research
  • FA: Fundamental Analysis
  • FOMO: Fear Of Missing Out
  • FUD: Fear Uncertainty & Doubt
  • HODL: Hold/Hold a position
  • ICO: Intial coin offering otherwise know as IPO.
  • Long: Margin bull position
  • MCAP: Market Capitalization
  • Moon: Continuous upward movement of price
  • OTC: Over The Counter
  • Pump: Upward price movement
  • Shitcoin: A coin with no potential value or use
  • Short: Margin bear position
  • Swing: Zig zag price movement (Upwards and downwards)
  • TA: Technical Analysis
  • REKT: When you have a bad loss
  • Whale: Very Wealthy trader/Market mover.
  • Weak Hand: a coin holder prone to selling at the first sign of a deep in price.
  • AMA: Ask me anything
  • ATH: All-Time High
  • ASHDRAKED:  A situation where you lost all your money.
  • C2C: Crypto to Crypto
  • DLT: Distributed ledger technology
  • DYOR: Do Your Own Research
  • IMO: In My Opinion
  • JOMO: Joy Of Missing Out
  • Lambo: Lambo is the status symbol that becomes an elusive goal for most investors. It’s a car industry reference that makes people believe everyone who has entered the cryptocurrency business will buy a Lamborghini very soon.
  • Moon: To the Moon resembles the All-Time high.
  • Nocoiner: A Nocoiner can be any person who doesn’t own Bitcoins.
  • Noob: A person who is inexperienced/ new to a particular sphere or activity,
  • OTC: Over The Counter
  • SAFU: Secure Asset Funds for Users.
  • Shill: Shill is the holder/owner of altcoins who just wants to promote his digital currency for his own benefit.
Do you know any abbreviations used in Crypto Space not listed here? let hear from you.

How to maximize profit with Trailing Stop Loss?

 


A Trailing Stop Loss is a modification of a typical stop order that can be set at a defined percentage or dollar amount away from a security's current market price. For a long position, an investor places a trailing stop loss below the current market price. For a short position, an investor places the trailing stop above the current market price.

A trailing stop is designed to protect gains by enabling a trade to remain open and continue to profit as long as the price is moving in the investor’s favor. The order closes the trad

Now understand Trailing Stop loss with an example. 

Assume you bought a coin at the price of 100 and put the trailing stop loss at 90 (10 points below the buying price).

If the price drops to 90 then your stop loss will be activated and the trade is closed with a 10% loss. 

But if the price of the coin increase to 130 then the trailing stop loss automatically shifts to 120 (means 10 points below the current price). If the price drops to 120 then the trade is closed automatically (the 120 trailing stop loss will be activated), If the price continues to increase the trailing stop also increase with it and remains always 10 points below the current price. You need to do it manually. 


Currently, Binance only supports trailing stop loss for the Futures market but sooner we will see the feature for spot trading also.

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