What are Algorithmic Stablecoins?

 

Algorithmic Stablecoins
IMG Source

Seigniorage or Algorithmic StableCoins is the stable coins that are designed to Expand or Contract their supply according to the Demand & Supply of the market. 

Before getting into Algo Stablecoins, let's understand what are stablecoins in short, 

Stablecoins are acting the same as a fiat currency in Crypto Space, you can say it a Fiat Currency of Crypto Space in Digital Form. These coins are generally backed by the Fiat Currency of the particular country like (USDT by Dollars) or other Cryptocurrencies or Some Precious Metals. 

USDT (Tether) is one of the most popular Stablecoin in #Crypto Space, One unit of a #Stablecoin equals $1.

Algo-StableCoins method uses ‘Smart Contracts’ that automatically expand and contract the supply using algorithms to maintain value.

Said StableCoin has a $1 value. The price drops to $0.80, indicating the supply of StableCoins is higher than the demand. The algorithm uses seigniorage to buy ‘said’ StableCoin, thereby decreasing supply and pushing the price back to $1.

Users are essentially investing in the coins. When said StableCoin trades above $1, the algorithm issues additional tokens increasing supply until the price returns to $1.

Source

What is Ethereum 2.0?

 


As the name suggests Ether 2.0 is the updated version of Eth blockchain named as Eth 2.0, One of the big difference we will see in Eth 2.0 that it moved away from Proof-of-Work, a consensus mechanism, means the mining of Eth will not be available in future & it will be shifted on Proof-Of-Stacking (POS) mechanism, Another big change will happen on the transactions part, Eth 2.0 will considerably handle more transaction per seconds, which will reduce the fees of the network as well.

Eth 2.0 will come with Stacking mechanism, means a member can stake their Eth in order to run a node on ether network to become a validator of the transaction, the minimum eth stacking is 32 ETH in order to run a node and member get interested on that as well, Well it considerably a great updates ahead people believe that increasing capacity through Ethereum 2.0 will also help make transactions cheaper. As we get closer and closer to the upgrade, we’ve seen costs rise substantially, which is great news for miners but bad news for consumers.

Binance Exchange

Top 5 tips for Crypto Noobs

  1. Storage of private Keys: Always, always, ALWAYS make a note of your private key. This is the key to your money, it is yours and no one can get access to it, like a combination to your own personal safe. Write it down, print it out, and store it somewhere only you know. If you forget the passwords to your wallet, this is your only backstop so LOOK AFTER It!  
  2. Choose the right exchange: There are a lot of exchanges out there to choose from, each with their own benefit, each also with their own flaws. You can see recommendations of each on any number of google searches. The best exchanges are ones which are current and proven, ones which are sworn by leading crypto enthusiasts. Do your own research and choose which is the best for you. "One of the leading and safer exchange today is Binance"
  3. Store your crypto in a cold storage wallet: Some people choose to keep their money on an exchange, which is fine if you are constantly trading. If not, there is no sense in keeping it on there. Would you leave your wallet on the table at a restaurant when you go to the toilet? No. So take your money back into your control and store it in a paper wallet, or ledger until you are ready to use it again. Many exchanges have been hacked, and all the crypto from peoples wallets stolen, don’t let this be you.
  4. Do your own research: This one is extremely important. Whilst it is good to listen to top crypto influencers and enthusiasts to gain knowledge on what is happening in the market and what investments are out there, DO NOT TAKE THEIR RECOMMENDATIONS AS VERBATUM. They, like you, are speculators and have no idea what the performance of the advertised cryptocurrency will be. Take their suggestions, look into the cryptocurrency, do some research on the fundamentals, then make your decision.
  5. Know when to take your profits: Set yourself a point at which you are happy to take the profits of your spoils. Don’t, like so many others out there, expect your investment to 100x overnight. Set your own standards as to when you will sell, because crypto is a volatile game and large swings can happen almost instantaneously. Better to get out at 50% of profit rather than wait for 100% and instead see your investment plummet before you took out your money. One of the best ways to do this is by selling 50% when any coin doubles. This way you will have your principal amount safe.

Top 10 Rules In Trading

Top 10 Rules In Trading


Here are some generic rules in trading:
  1. Never go all in one.
  2. If you think it has to go down because it went up for so long, it doesn't.
  3. If you think it has to go up because it went down for so long, it doesn't.
  4. When you think it is over and it will go down forever, then it's time to consider investing in the opposite. Trading is a game where only 10% win - and you do know that for that you need to think differently than how the 90% think.
  5. If you just had a failed trade that you didn't expect, don't rush into another trade.
  6. Don't fear missing out. There are new trading opportunities every day.
  7. Don't force the trade if the pre-trade setup isn't playing as you're expecting.
  8. Know your strategy. If your strategy is to slowly accumulate more, you don't need 50x swing trades in between - they can just f u c k u p your portfolio. 
  9. write down your first gut reaction that you get within 60 seconds of looking at the charts.
  10. Don't trust your gut reaction.

Bonus rule: Taking good care of yourself.

Feel free to write in the comment your own rules and Share This Article To help your Crypto brothers make better trades.
YoBit Exchange