Crypto Guides, Knowledge & Insights

Understanding the risk involved in cryptocurrency trading: A guide for all Nigerian traders

By Damian Okonkwo　　What is Cryptocurrency trading？　　Cryptocurrency trading is the buying and selling of various digital assets such as Bitcoin, Ethereum, Dogecoin, Binance Coin, etc. It is a popular investment into digital assets in the hope of making profits as the prices appreciate.　　Major Cryptocurrencies traded today 　　The top ten most traded Cryptocurrencies today based on their market capitalization are: Bitcoin, Ethereum, Binance Coin, XRP, Cardano, Solana, Dogecoin, Polkadot, Polygon, and Tron.　　What are the risks associated with cryptocurrency trading？　　The fact that cryptocurrency is highly decentralized and unregulated has greatly increased the risk associated with cryptocurrency trading. We have therefore discussed these risks below.　　A. No assurance for profits: There is no guarantee for profits in cryptocurrency trading today. Here the trader can either gain or lose based on the market volatility and the positions he has taken in the market.　　B. Highly decentralized: The fact that cryptocurrency trading is decentralized makes it difficult to recover lost funds from scammers.　　C. Unregulated: Cryptocurrency trading is not well-regulated in most countries today. This increases the tendency for some projects to rugpull without anyone questioning the developers of such projects.　　D. Prone to attacks: Many crypto projects have been attacked in the past. The most recent attack on

2022-10-17Deep Dive

Analyst: Bitcoin Must Maintain a Price Above $19,200 to Reduce Adverse Impact

Since this is an important level, according to industry expert Ali Martinez, the top cryptocurrency must maintain a price above $19,200 to lessen panic selling. He emphasized:　　“Roughly 2.5 million addresses bought nearly 1.5 million BTC at $19,200. The longer Bitcoin continues trading below $19,000, the higher the pressure these investors will feel to exit their long BTC positions to cut losses short. Consequently accelerating the downward pressure.”　　The Consumer Price Index (CPI) for all urban consumers rose by 0.4% in September, according to the most recent inflation figures given by the United States Bureau of Labor Statistics (BLS), according to Blockchain.News. 　　A broad market response followed, which sent tremors through the cryptocurrency market and caused Bitcoin to plunge as low as $18,319. 　　Santiment, a cryptocurrency information service, said:　　“Thursday has been an expectedly volatile day after inflation data was released. Bitcoin dropped to $18.3k, its lowest price level since September 21st. However, as traders were in the midst of stopping the bleeding, BTC s societal domination has decreased, but the top cryptocurrency was up by 3.38% in the previous day to touch $19,623 during trading stocks, as per CoinMarketCap. 　　BTCs societal influence has diminished as a result of certain traders aiming for

2022-10-14Deep Dive

Binance fulfills its 21st quarterly BNB burn, destroying $548 million in BNB.

Binance, a cryptocurrency exchange site, reported in its most recent update that it has managed to destroy over 2,065,152.42 BNB. 　　The exchange site further reported that an additional 4,833.25 BNB was burned as part of its Pioneer Burn Program, which rewards people who actually lost their digital assets.　　By subtracting tokens (lost by users via honest mistakes) in the quarterly burn and then reimbursing the users based on some particular circumstances, Binance takes the blame for these costs under the Pioneer Burn Program.　　Since the BNB currencys introduction in 2017, the exchange platform Binance has made a commitment to destroy a significant portion of BNB coins each quarter. Binance originally began the BNB burn mechanism by purchasing BNB coins with 20% of their earnings, burning them, and repeating this process until they purchased and burned 50% of BNB (100MM). However, the trading platform unveiled a new combustion method in December 2021 that makes use of autonomous on-chain computations.　　This implies that based on the cost of BNB and the quantity of blocks created throughout the quarter, the BNB auto-burn system will automatically weigh the quantity of BNB to be burned. The BNB coin is sliding lower and is currently sitting at $260, seemingly

2022-10-14Deep Dive

Launching of a Twitter Account for NFT Shareholders by CoinShares

The debut of a Twitter bot named “CoinSharesNFTAI” was revealed by CoinShares on Thursday. Based on the Twitter bots function, “CoinSharesNFTAI” would assist NFT buyers in determining a “fair price” for any NFT registered on Opensea. 　　With just one tweet, the Twitter bot would help NFT investors on Twitter sort through market uncertainty and determine how much an NFT would be worth. Users would need to tweet an Opensea link to the NFT they wanted to check, along with the hashtag #CoinSharesNFTAI, to activate the bot.　　In the statement, CoinShares warned that pricing NFTs would be challenging because of their unstable value and abundance on the market.　　“Building on our crypto and quantitative expertise, we came up with an experimental project to price NFTs, whether you own them already or not. This model relies on tested mathematical concepts to predict a fair price for any NFT currently listed on @opensea,” CoinShares stated this in the press release.　　The assumptions made by the bot are dependent on known variables such as hype, rarity, utility, substance, and items, as well as the amount of transactions and NFT program history.　　NFTs are among the recently discovered digital content in the cryptocurrency business today, and its crucial that

2022-10-14Deep Dive

What Is SushiSwap?

More and more technologies are being created as decentralized finance (DeFi) develops towards a more inclusive financial system. There are several decentralized exchange (DEX) options available on practically every blockchain if you want to trade cryptocurrencies, but it might be difficult to know where to start.　　In this article, well go through how to use SushiSwap, which has been providing users with access to all of the Ethereum ecosystems tokens since 2020.　　What is SushiSwap？　　　　Chef Nomi and 0xMaki, two anonymous open-source engineers, established the Ethereum-based DEX SushiSwap, which at first appeared to be a duplicate of Uniswap.　　SushiSwap, a copy of Uniswap, offered a platform for token exchanges without the use of a mediator or intermediary. The founders of SushiSwap incorporated novel features to the platform, such as governance via the SUSHI token and liquidity mining.　　The SushiSwap ecosystems native token, SUSHI, allows users the ability to vote on the platforms direction as well as a cut of trading commissions and stake incentives. SushiSwap can be used without owning SUSHI, although the token does provide some extra functionality, such as staking, that is not available without it.　　How SushiSwap works　　SushiSwap uses an automated market maker, a decentralized trading strategy (AMM). SushiSwaps AMM makes the entire

2022-10-14Deep Dive

Valkyrie will sell the Bitcoin Balance Sheet ETF.

The administrator of digital content said that the Valkyrie Balance Sheet Opportunities FUND (Nasdaq: VBB), which has operated on Nasdaq since December 2021, would cease operations at the end of the month and thereafter be taken off the list.　　According to a petition with the Securities and Exchange Commission on Tuesday, each shareholder who holds shares of both the fund at liquidation will receive a cash refund corresponding to the net asset value (NAV) of their holdings.　　The funds liquidation, according to Valkyrie, was the most prudent move and was part of a regular product evaluation to ensure that the business was best meeting consumer needs.　　The company claimed that the decision was made after rigorous Board of Directors consultation. They came to the conclusion that ending the fund would be best for everyone concerned.　　In Valkyries second ETF, which has the highest stakes in the companies recognized for storing Bitcoin on their account balances, MicroStrategy (MSTR) and Tesla (TSLA), customers have never shown much enthusiasm. The study states that the funds net assets are currently barely around $570,000.　　Shares may be traded up to the close of business on October 28. Valkyrie stated that it will cover all costs associated with the liquidation, cash

2022-10-13Deep Dive

Charles Hoskinson Disconnected From the XRP Community Officially

The interaction revealed by his tweet suggests that Charles was the driving force behind a sizable number of trolls connected to the XRP community. 　　It seems that many XRP coin fans have been getting even with the renowned blockchain programmer, who has frequently been a fierce critic of numerous projects. He said in a tweet that the mocking might be over.　　“I think Ive blocked most of the XRP trolls who continue to harass me unprovoked. Ive never seen a group so radically pick up a few words and run with it. Great job turning an ally into someone disgusted and totally checked out,” he stated.　　　　Whereas many people applaud Charles actions, XRPcryptowolf, a well-known XRP supporter, came into the discussion and cautioned Charles against generalizing about community members based on the acts of a select minority. Charles, who seemed unmoved by this, continues by saying;　　“It isnt a few trolls. Its been an endless harassment campaign for days. Im done with it. I want nothing more to do with XRP. The community has accomplished nothing but harming itself. Congratulations.” 　　In what appears to be an open industry, acts and responses are frequently described as fair. Charles recently used the Twitter account that

2022-10-13Deep Dive

Google and Coinbase collaborated to provide cryptocurrency payments for cloud services

The strategic alliance also aims to meet the demands of the expanding Web3 ecosystem. For instance, programmers would be able to manage Web3 networks instantaneously and consistently, doing away with the requirement for intricate and pricey hardware. 　　In order to support improved exchange and internet services, Google Cloud will also act as Coinbases strategic cloud provider. The report states:　　“Coinbase will use Google Clouds powerful compute platform to process blockchain data at scale, and enhance the global reach of its crypto services by leveraging Googles premium fiber-optic network.”　　Additionally, for machines having to learn cryptocurrency insights, customers of Coinbase will use the data and analysis capabilities of Google Cloud. 　　“We are excited Google Cloud has selected Coinbase to help deliver Web3 to a new set of customers and give powerful solutions to developers,” said Brian Armstrong, the CEO and co-founder of Coinbase, in a statement expressing his companys support for the strategic partnership.　　“With more than 100 million verified users and 14,500 institutional clients, Coinbase has spent more than a decade building industry-leading products on top of blockchain technology. We could not ask for a better partner to help execute our vision of building a trusted bridge into the Web3 ecosystem.”　　Additionally, Coinbase users

2022-10-13Deep Dive

Understanding the Bear Season: A guide for all Crypto traders in Nigeria

By: Damian Okonkwo　　What is the bear season？　　The crypto bear season is the time when the prices of various Cryptocurrencies including Bitcoin and altcoins drop massively due to tight monetary policies such as interest rate hikes which causes investors to withdraw from risky assets and invest in government bonds and other less risky assets with fixed returns, especially the strong currencies.　　Major causes of the crypto bear season　　A. Tight monetary policies: This refers to the central banks policies of reducing the amount of money in circulation through aggressive interest rate hikes. Hiking the interest rate often pushed investors to withdraw from risky assets and to divert into bonds and other strong currencies with the highest interest rate for instance the US dollar. This affects the crypto market negatively. For instance, the strong bear season witnessed since the beginning of 2022 has been largely caused by the aggressive interest rate hike by the Fed and other countries central banks in the quest to curb the rising inflations.　　B. Tapering: This is the strategy used by the Central Banks to reduce the amount of money in circulation by reducing its balance sheets and slowing down its purchase of treasuries and other mortgage-backed securities. Often

2022-10-13Deep Dive

XRP, QNT, and CSPR are the top 3 cryptocurrency gainers as the market sees a flat recovery.

The leading virtual currencies have experienced a lot of ups and downs during the past fortnight, as usual. However, all of them had been able to mitigate some of the significant losses they had incurred over the previous seven days.　　The cryptocurrency business has been rocked by bankruptcy, and well-known companies have lost their top leaders, adding to the unrest. However, out of all of cryptocurrencies over the past week, XRP, Quant (QNT), and Casper Network (CSPR) have distinguished themselves.　　XRP (XRP) 　　One of the more robust currencies since the beginning of the crypto winter, made even more so by the notion that Ripple Labs Inc., a blockchain payments business affiliated with the Securities and Exchange Commission of the United States (SEC), is at the center of a court case over it.　　XRP has increased 16.98% in the past week to its current price of $0.5403, highlighting the extent of its bullish run throughout that period.　　Quant (QNT) 　　The previous Blockchain.News altcoins watchlist is reported to have included Quant, which means of conducting at the top. The token, which is currently trading at $157.63 and has increased by 6.57% over the last day and 17.20% over the past week, is clearly one of the

2022-10-12Deep Dive

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