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What are Network Fees in Blockchain and their significance in trading?
Leading blockchains are open source and therefore require participation from the community to strive. Without miners or validators, depending on the consensus style chosen, the respective network wouldn't be of any use. A distributed community of miners and validators commit their resources for rewards regularly disbursed by the network.
Difference between hot and cold wallets in Crypto
Wallets are 'interfaces' through which users interact with blockchains. There is no way of transacting or even remotely enjoying any of the innumerable advantages of cryptocurrencies without a wallet. Therefore, if you want to buy any crypto, one has to make a decision. Coins/tokens can be stored using a 'hot' wallet or a 'cold' wallet, or a combination of the two.
How will you Know Whether a Crypto Broker is Genuine?
Finding a genuine and trustworthy broker is paramount to your trading success. Find out what signs to look for, and what to avoid at all costs.
How to Trade Bitcoin with Leverage
Traders employ various strategies to improve their chances of making profits. While skills and discipline count, leverage can be used to amplify gains, a beautiful addition, especially for traders who may be short of capital.
A Liquidity Provider versus a Market Maker
Without getting twisted, Liquidity providers and market makers serve the same purpose but with some subtle differences. They both provide liquidity which in turn determines the volumes of an exchange. Their roles are to ensure the pair has enough liquidity at any point in time, enabling seamless trading. Given their near overlapping roles, a market maker is easily identifiable because they are common in traditional cryptocurrency exchanges.
An Order Book versus Automated Market Maker
Without centralized exchanges, DeFi wouldn't have been this successful. Problems faced by traders in CEXes fast-tracked the shift to DeFi and other non-custodial options. Still, they complement each other. DeFi and CEXes work towards the same goal—of promoting crypto adoption—with both options available to the undiscerning trader.
What is Crypto Hashing?
The beauty of blockchain lies in transparency and, paradoxically, privacy. Right off the bat, a user wouldn't know the source of transactions or identities of transactors without using special tools. Making this possible is a public ledger's integration of cryptography and a 'hashing' algorithm. To 'hash' a transaction in crypto circles is to take the input string of any length and turn it into a cryptographic fixed output.
What is a blockchain explorer?
Before diving in, it is good to appreciate that every tool currently in existence within the crypto and blockchain space was innovated from scratch. In the early days of Bitcoin and crypto, it was virtually impossible to track or monitor transactions. The need to monitor or map out transactions rose as crypto began gaining traction as a means of settlement.
Difference between a hard fork and a soft fork
A soft or a hard fork only happens when the conditions necessary to activate a forking event matures. As long as public ledgers remain as they are, forking won't end, helping in one way or another in mass adoption. Forks can either be because of a needed improvement or a contestation where most users (nodes or validators) are not in agreement.
What are BIP and EIP?
Crypto development is fast-paced, Satoshi—at one point in time, didn't have the time to convince a critic, dismissive of his vision. It was hard. He was acting solo, spearheading a revolution before melting into the interwebs. Bitcoin and Ethereum are leaders in their respective categories because of the efforts from the wider community.
The size of the blockchain will keep growing forever
Blockchain is a public ledger, a database for storing transactions. Full nodes keep a copy of all transactions. They must sync correctly with the majority of nodes for validity. These nodes allow networks to be decentralized and completely peer-to-peer, without a central authority. Novel as blockchain technology is, the size of the network will keep growing forever.
What makes a blockchain project decentralized?
Perhaps you have heard about 'decentralized' a couple of times being thrown about by maxis. Bitcoin this, Ethereum that, well, this will go on as long as these two projects exist. The question is: You are a newbie and wondering what truly makes a blockchain project decentralized? Decentralization makes cryptocurrencies unique. Without this property, the network becomes vulnerable to attacks.
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