DOGS we are Waiting. . . . 👀 | AREWA CRYPTO on Binance Square

Trending Articles

Bookmarked and Liked

--

DOGS we are Waiting. . . . 👀

0 people tipped the creator.

Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.

559

0

Replies 0

Explore the latest crypto news

⚡️ Be a part of the latests discussions in crypto

💬 Interact with your favorite creators

👍 Enjoy content that interests you

Email / Phone number

Relevant Creator

@AREWA_CRYPTO

Explore More From Creator

What are "Long" and "Short" Position? Long is a strategy where a trader or investor buys an asset with the intention of selling it later at a higher price. Simply put, a long position is a bet on the price of an asset going up. The trader buys the asset, expecting its value to rise, and plans to profit from the difference between the purchase and sale price. You buy 1 Bitcoin at a price of $20,000, expecting its value to rise to $25,000. If the price does indeed increase, you sell the Bitcoin and make a profit of $5,000 (excluding fees and other costs). Short is a strategy where a trader borrows an asset (like stocks) from a broker and sells it on the market, intending to buy it back later at a lower price. A short position is a bet on the price of an asset going down. The trader sells the asset, expecting its price to drop, and plans to profit from the difference between the sale and repurchase price. You borrow 10 shares of a company at $100 per share and sell them, receiving $1,000. If the share price drops to $80, you buy back the 10 shares for $800 and return them to the broker, keeping the $200 difference as profit (excluding fees and other costs). Risks 🔵 Long: The maximum risk in a long position is limited to the amount you invested in the asset. If the asset's price drops to zero, you lose your entire investment. 🔵 Short: The risk in a short position is theoretically unlimited, as the asset's price can rise indefinitely. If the price of the asset spikes, the losses can be much greater than the initial amount invested.

--

What is the difference between a private and a public key? Private and public keys are two essential components of asymmetric encryption that work together to ensure data security. Here are the main differences between them: The private key is used to decrypt data that has been encrypted with the corresponding public key and to create a digital signature. 🔵 The private key must be kept strictly confidential and accessible only to the owner. Its leakage can lead to data and asset compromise. 🔵 It is used to sign transactions, documents, and messages, confirming their authenticity and allowing the recipient to verify that the data truly comes from the owner of the private key. The public key is used to encrypt data that can then only be decrypted using the corresponding private key and to verify a digital signature created by the private key. 🔵 The public key can be freely distributed and shared with others. Its leakage poses no threat since it cannot be used to access data by itself. 🔵 It is used to encrypt messages or data that will be sent to the private key owner and to verify the authenticity of signatures.

--

Token Liquidity Token liquidity refers to the ability of a token to be quickly and easily exchanged for another asset (e.g., fiat currency or another cryptocurrency) without significantly affecting its market price. Why is liquidity important? 🔵 High liquidity means you can easily buy or sell a token at the current market price. This is especially important for traders who want to quickly enter or exit the market. 🔵 In liquid markets, the token price is less prone to sharp fluctuations because there are enough buyers and sellers to maintain price stability. In contrast, in illiquid markets, even small trades can significantly affect the price. 🔵 High liquidity allows projects and investors to mobilize funds more quickly when needed. 🔵 Investors prefer tokens with high liquidity as it reduces the risks associated with difficulties in selling the asset in the future. Factors affecting token liquidity: 🔵 Tokens with high trading volumes on exchanges usually have higher liquidity because there are more market participants willing to trade the asset. 🔵 If a token is traded on a large number of exchanges, this increases its liquidity as more traders have access to it. 🔵 Tokens issued by well-known and respected projects generally have higher liquidity because they are trusted more by market participants. 🔵 Tokens that are integrated into the ecosystems of other projects or platforms may have higher liquidity due to access to a larger user base.

--

What PoW used for? PoW (Proof of Work) is the first and most well-known consensus algorithm used in the Bitcoin blockchain. The main idea of PoW is that network participants (miners) solve complex mathematical problems to add a new block to the blockchain. This process requires significant computational resources. Key purposes and functions of PoW: 🔵 Security: By utilizing computational resources, PoW ensures network security, making it extremely difficult and expensive for attackers to compromise the network (e.g., through a 51% attack). 🔵 Decentralization: PoW allows many participants to engage in the process of validating transactions, making the network more decentralized. 🔵 Creation of new coins: Miners who solve PoW problems are rewarded with new coins (such as Bitcoin), incentivizing their participation in supporting the network.

--

What is PoS used for? PoS (Proof of Stake) is a newer consensus algorithm that operates based on token ownership. In PoS, network participants (validators) lock or "stake" their coins as collateral for the right to add a new block to the blockchain. The more coins a participant stakes, the higher their chance of being selected to add the block. Key purposes and functions of PoS: 🔵 Energy efficiency: Unlike PoW, PoS does not require extensive computational resources, making it more environmentally friendly and economically viable. 🔵 Increased security: In the event of malicious actions, the validator can lose their staked coins, making attacks less likely. 🔵 Incentivizing participation: In PoS, validators receive rewards in the form of transaction fees and sometimes additional tokens, which encourages them to participate in supporting the network.

--

Latest News

Bitcoin Wallets From 2010 Linked To Satoshi Nakamoto, Theory Suggests

--

Starknet Security Committee V1.0 Established To Enhance Network Safety

--

Former Goldman Executive Comments On New Treasury Secretary's Economic Strategy

--

Texas Implements New Regulations for Bitcoin Miners on ERCOT Grid

--

Bitcoin ETFs Surge In Brazil As Prices Near $100,000

--

Trending Articles

XRP Price Prediction for November 25

Bitcoin and the Lost Password 😲😲😲 Rajesh was a simple man

🚨 $BTTC: 9000% Growth or Just Hype? Let’s Crunch the Numbers! 🚨

A PEPE whale sold 740.7 billion PEPE tod

Readon Web3 Content Platform

What are "Long" and "Short" Position? Long is a strategy wh

Cookie Preferences

ba-one-trust-cookie