Category: Business
-
DEX Fees: What You Need to Know
Decentralized exchanges (DEX) operate without intermediaries, allowing users to trade cryptocurrencies directly through smart contracts. However, these transactions come with different types of fees that are essential to understand before trading. Main Types of Fees on DEX 1. Gas fees A gas fee is the cost of executing a transaction on the blockchain. Since DEX…
-
Cryptocurrency mining and its types
Cryptocurrency mining is the process of verifying transactions and adding them to the blockchain using computing power. It ensures the decentralized operation of the network and protects it from abuse. Miners receive rewards in the form of new coins and transaction fees, making mining a crucial part of many cryptocurrencies. Bitcoin (BTC) mining is the…
-
Slippage and its impact on trading
Slippage is a common phenomenon in financial markets, including cryptocurrency exchanges, where the execution price of an order differs from the expected price. This occurs due to rapid price movements and insufficient market liquidity at a given moment. Slippage can affect both market and limit orders, influencing trading efficiency and overall profitability. Understanding its causes…
-
Candlestick analysis and what candlesticks are on exchanges
Candlestick analysis is one of the most widely used techniques in technical analysis for predicting price movements in financial markets, including cryptocurrency exchanges. Candlesticks provide a visual representation of price action within a specific time frame, helping traders identify market trends, reversals, and potential price targets. Each candlestick consists of four key components: the opening…
-
Stop-loss and take-profit: how to protect your capital
Managing risks in trading is essential to long-term success. Stop-loss and take-profit orders are key tools that help traders protect their capital and lock in profits. Understanding how they work and how to use them effectively can significantly improve trading outcomes. What is a stop-loss order A stop-loss order is an automatic instruction to sell…
-
Comparison of DeFi trading and traditional trading: advantages and disadvantages
DeFi trading, or trading on decentralized financial platforms, is a new direction in the cryptocurrency world that is actively developing. This creates certain advantages and disadvantages compared to traditional trading on centralized exchanges. Let’s look at the key aspects of these two trading approaches 1. Accessibility and control Advantage of DeFi: Users have full control…
-
Blockchain: What it is and how it works
Blockchain is a technology that ensures secure storage and transfer of information in the digital world without the need for centralized intermediaries. It is a distributed ledger that stores records (blocks) of data in a sequential manner, where each block contains information about the previous one, thus creating a continuous chain. All transactions occurring in…
-
Principles of Trading on Decentralized Markets
Trading on decentralized exchanges (DEX) offers unique advantages over traditional centralized platforms, such as increased security, privacy, and control. Here’s an overview of the key principles of trading on decentralized markets, along with some drawbacks. 1. Peer-to-Peer Transactions On decentralized markets, trades occur directly between users, without intermediaries. Users retain full control of their funds…
-
Types of orders on centralized exchanges and when they execute
When trading on centralized cryptocurrency exchanges (CEX), choosing the right type of order is crucial for executing trades efficiently. Different order types help traders manage risk, optimize profits, and automate their strategies. Below, we explore the most common types of orders and when they are executed. 1. Market order ✅ What it is: a market…
-
Algorithmic trading in cryptocurrency: the power behind automated markets
In the fast-paced world of cryptocurrency, where prices fluctuate within seconds, traders constantly seek an edge to stay ahead. This is where algorithmic trading, or algo trading, comes into play—transforming how digital assets are bought and sold. By using computer programs that execute trades based on predefined rules, traders eliminate emotions, enhance efficiency, and optimize…
