In my previous post, I explained what institutional adoption is and why it's important for the crypto industry at this stage. Now we will be discussing the benefits of having institutional investors in the market.

Follow me at #Ernestacademy to stay informed about the crypto industry.

Before we proceed, who are institutional investors?

Institutional investors can be hedge funds, big asset management firms, pension funds, and banks.

What are the benefits of having these guys in the cryptocurrency industry?

1. Price Stability: Institutional investors often have a longer-term investment horizon compared to retail investors, who trade for short-term profits. Their participation can contribute to a more stable market by reducing the impact of short-term price fluctuations and speculative trading.

2. Improved Infrastructure: Institutional investors often require robust and secure infrastructure for custody and trade. Their involvement aids in the development of advanced custodial solutions, institutional-grade trading platforms, and compliance frameworks, which benefit the entire ecosystem by enhancing security and market integrity.

3. Price Discovery and Transparency: Institutional investors conduct extensive research and analysis before making investment decisions. Their participation in the cryptocurrency market can contribute to more accurate price discovery as they bring professional expertise and market insights. It enhances transparency in the market as well.

The benefits of having institutional investors in our industry are numerous, but I will stop here.

What do you think about having these big guys on the market?

Do you think it will aid in controlling price manipulation?

Share your thoughts in the comment section.

#crypto2023

Liquidity is a very important topic that every crypto trader must be conversant with, but unfortunately, more than 60 percent of traders can't explain what liquidity is and how it affects price.

Follow me at #Ernestacademy as we discuss everything you need to know about the aforesaid topic.

What is liquidity in cryptocurrency?

Liquidity refers to the degree of ease with which a cryptocurrency asset can be bought or sold in the market without significantly impacting its price. i.e., the measure of how quickly an asset can be converted into cash or another cryptocurrency at minimal transaction costs.

Liquidity is what makes every crypto asset readily tradable; without it, you won't be able to sell or buy.

Importance of liquidity in the market:

1. Price Stability: In liquid markets, large buy or sell orders are less likely to cause significant price fluctuations. The presence of many buyers and sellers helps absorb the impact of large trades, maintaining price stability.

2. Reduces slippage: slippage refers to the difference between the expected price of a trade and the actual executed price. If you have traded on DEX before, you will understand how this applies. High liquidity will ensure that the slippage is very tiny—in some cases, 0.1 percent.

3. Fast execution: a highly liquid market is very fast to trade in as traders will be able to buy and sell without delay.

4. Lower transaction cost: The difference between the bid and ask prices will be very narrow.

5. Market depth: A highly liquid market encourages market depth, which is the volume of buys and sells at different prices.

Simple illustration of the importance of liquidity.

#BTC is the most liquid asset in the crypto industry. If a sell of $10 million is initiated by a trader, it will be executed in seconds without any significant impact on the price, but if such an amount is initiated in the #KEY token, you will observe a very sharp drop in the price. That's because of liquidity.

In conclusion, liquidity is vital in trading, and every trader must ensure they are entering liquid pairs to avoid losing funds.

#crypto2023 #trading

If you're in the crypto space, you will know that something big is coming next year as the bitcoin halving will take place. Don't forget to follow me at #Ernestacademy to stay updated.

What's Bitcoin Halving?

Bitcoin halving refers to the reduction in the block reward given to miners for successfully validating and adding new blocks to the Bitcoin blockchain. The reward is halved, hence the name "bitcoin halving."

Purpose of bitcoin halving:

The primary goal of Bitcoin halving is to control the supply of new Bitcoins entering circulation and ensure the scarcity of the cryptocurrency over time.

Time for the next halving:

Bitcoin halving events occur once every 210,000 blocks are mined, roughly every four years. The initial block reward was 50 bitcoins and was halved to 25 in the first halving event in 2012, then halved again to 12.5 in the second halving event in 2016, and further halved to 6.25 in the third halving event in May 2020. The next halving is happening in 2024, and the reward will drop to 3.125.

Importance of Bitcoin Halving:

1. Scarcity and Inflation Control: By reducing the block reward and slowing down the rate of new Bitcoin creation, halving ensures that the total supply of Bitcoin approaches its predetermined cap of 21 million coins. Remember that scarcity increases demand, which in turn increases the monetary value of bitcoin.

2. Improves the security of the Bitcoin network: Bitcoin halving helps to improve the security of the Bitcoin network as it makes it more expensive for miners to attack the network.

3. Attracts new investors: Bitcoin halving attracts new investors to the Bitcoin market and the cryptocurrency market at large.

What crypto traders should expect next year:

We all know that bitcoin dominates over 40% of the entire cryptocurrency market capitalization; this means that any positive or bullish news about BTC will also affect the market positively.

Personally, I'm seeing a bullish run following the next bitcoin halving, and you have to position yourself now. Start accumulating good coins with strong fundamentals. Use dollar-cost averaging.

Do you agree with me? Leave a comment below.

#crypto2023 #BTC #BNB

Binance, being the number one cryptocurrency exchange in the whole world, has several amazing features that every trader can take advantage of. In this article, we will be discussing one of these features, the Binance launch pad.

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What's Binance Launchpad?

Binance Launchpad is a token launch platform operated by Binance. It provides a platform for blockchain projects to raise funds and launch their tokens through a token sale event called an Initial Coin Offering (ICO) or Initial Exchange Offering (IEO). Since its inception, 70 projects have launched successfully on it, with a total fund value of $110,347,693 raised from 3,979,723 unique participants.

Some projects that launched on the Binance platform include:

1. Mc 2. Qi 3. Santos 4. City 5. Mbox 6. etc

Important notes about the Launchpad:

1. Binance Coin (BNB): BNB, the native cryptocurrency of the Binance exchange, is usually used as the primary currency for participating in token sales on Binance Launchpad.

2. Selective Project Listings: Binance Launchpad carefully selects projects to be featured on its platform, conducting due diligence to assess the project's potential, team, and technology.

3. Token Allocation: Users often commit a certain amount of BNB or the required coin for a chance to win an allocation. The launch pool size and total amount committed by users are considered in the allocation.

In conclusion, you're required to read and understand the terms and conditions before venturing into Launchpad, which might pose its own risks.

Do you gain value? Leave a comment.

#crypto2023 #Binance

In the cryptocurrency industry, we have different categories that different coins and tokens belong to. In this article, we will be learning about metaverse tokens.

Follow me at #Ernestacademy to stay informed about the crypto industry.

What's Metaverse?

Metaverse refers to a virtual reality space where users can interact with each other using digital assets in a shared online environment.

Having understood the metaverse, what are metaverse coins?

Metaverse coins" refer to cryptocurrencies that are specifically associated with projects or platforms related to the metaverse. They are designed to facilitate transactions within the metaverse ecosystem.

Advantages of the metaverse over traditional online experiences:

1. Shared Virtual Space: The metaverse creates a shared virtual space where people from around the world can connect, communicate, and collaborate in real time. It breaks down geographical barriers and enables social interactions on a global scale.

2. Digital Ownership and Economies: In the metaverse, users can own and trade digital assets such as virtual real estate, virtual goods, and virtual currencies. These assets can also have real-world value.

3. Immersive Experience: Unlike traditional online experiences, they aim to provide a highly immersive and interactive environment. Users explore virtual worlds, interact with other users, and engage in activities that closely resemble real-life experiences.

Some coins or tokens that fall into this category are:

1. Decentraland (MANA)

2. Sandbox (SAND)

3. Axie Infinity (AXS)

4. Gala (GALA)

5. Alien Worlds (TLM)

6. Render Token (RNDR)

7. Enjin Coin (ENJ)

The list continues.

Have you traded any metaverse coins before? Share your experience in the comment section below.

#crypto2023

In the cryptocurrency industry, coins that solve or tend to solve a particular problem are grouped into the same category. For instance, coins that offer a solution for Decentralized trading are grouped under DEFI (decentralized finance), while those that aid in games are under the gaming category.

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In this article, we will discuss centralized (CEX) coins, otherwise known as exchange coins, they are coins issued by a specific cryptocurrency exchange. These coins are designed to serve a specific purpose within the exchange's ecosystem and provide various benefits to users.

These are the purposes they serve:

1. Fee discounts: Holding exchange coins can provide users with fee discounts on trading fees, withdrawal fees, or other transactional costs within the exchange.

2. Rewards Programs: Some exchanges offer loyalty programs or reward systems for users who hold and use their native tokens. These rewards can include a share of the exchange's revenue, airdrops of new tokens, exclusive access to certain features or events, or other benefits. For example, people holding Binance native tokens can easily participate in Launchpad.

3. Governance and Voting Rights: In certain cases, exchange coins may grant holders voting rights or influence in decision-making processes related to the exchange's operations, such as listing new tokens or implementing platform upgrades. This gives token holders a voice in the direction of the exchange.

There are many other benefits to holding the native token of a big centralized exchange like Binance that you wouldn't want to miss.

Plan to accumulate exchange tokens from substantial exchanges.