OKX: How Does a Crypto Exchange Work? OKX (OKEx) is one of the largest cryptocurrency exchanges in the world. It features more than 485 instruments, as well as about 30 fiat currencies. History The OKX cryptocurrency exchange opened in Hong Kong in 2014 under the name OKEx. It is included in the same group as one of the oldest platforms on the OkCoin market. In 2018, the platform officially moved to Malta. More than 485 trading instruments are presented on OKX for market players, as well as about 30 fiat currencies. At the same time, the platform offers not only crypto trading, but also trade futures using bitcoin, ether, litecoin, XRP, and some other virtual assets. In January 2022, OKEx officially announced its name change to OKX and rebranding of the company. As a result of the rebranding, the design of the crypto exchange has changed, and plans for the future development of the brand have been revised. The company also indicated that it has made significant progress in 2021. There is now a single account on the exchange, currency conversion has become possible, and an NFT platform has appeared, with which you can create your own token. “We are building something much more than a centralized exchange. Now is the time to develop our brand to reflect what we are striving for,” the company said in the press release. According to the company, they decided to remove the combination “Ex” from the name, which meant “exchange” as the resource has already gone beyond the standard trading platform. “We are pushing the boundaries of the classic concept of the exchange and its capabilities by offering a wide range of services based on blockchain technology, including spot and margin trading, options, perpetual swaps, DeFi, NFT, staking, mining, and lending,” the official OKX’s statement says. The exchange noted that the project has come a long way from a cryptocurrency trading platform to a real ecosystem. Registration on OKX In order to conduct transactions on the OKX exchange, users need to undergo mandatory verification. To withdraw funds, the first level of verification is required. Clients of the site must provide the following data: their first and last name, citizenship, as well as the number of an identity document. To work with fiat currencies, the user needs to pass a more advanced verification. At the end of December 2021, OKX introduced updated conditions for becoming a VIP client of the platform. The changes are aimed at facilitating verification as a unique site user with extended privileges, as well as reducing commission fees. Tools for Crypto Trading on OKX The OKX exchange offers trading in over 200 cryptocurrencies. It provides an opportunity to buy the digital assets presented on it with the help of 30 fiat currencies. To carry out the operation, the user needs to choose which cryptocurrency he wants to purchase, place an order, and confirm the payment card details. In addition, the platform has a spot market with the possibility of margin trading, a futures market, and perpetual swaps. The last ones are divided into two subspecies – cryptocurrency and USDT. The maximum leverage for margin trading in the spot market is x10, and it is x125 for futures and swaps. There are two modes for margin trading on the crypto exchange: cross margin and isolated margin. Similar modes are intended for futures and swaps trading. Products of the OKX exchange Earn Loan Staking Mining Jumpstart Slot auction Learn OKX Pool Bridge Depositing and withdrawing funds on OKX The OKX crypto exchange does not imply any restrictions on account replenishment. There is a minimum threshold for each cryptocurrency: Bitcoin – 0.00005 BTC; Ethereum – 0.01 ETH. For the withdrawal of each digital coin, a commission is fixed: for Bitcoin – 0.0005 BTC, for Ethereum – 0.004 ETH. The withdrawal limit depends on the verification level. Commissions are calculated using the maker/taker system. The platform has created a special system for each type of market: spot, futures, swaps, and options. Rewards The exchange offers users to receive free bitcoins by completing certain tasks (starter or advanced). You can also compete for awards from your mobile device by downloading the OKX apps. OKX referral program To take advantage of the OKX referral program, the user needs to send an affiliate link to the addressee. As soon as the referral passes verification on the exchange and buys cryptocurrency or replenishes the account, the user who referred him receives 15 USDT as a discount on the commission. When an exchange client brings 5 referrals to the site, he can become an OKX partner and start earning interest on commissions. Details can be found on the crypto exchange website. Affiliates Any user can join the affiliate program and earn commissions, and promote OKX. Affiliates receive up to 60% commission every time the users they invite make transactions on the exchange. If your referral becomes an OKX partner, you can earn 10% from the rewards of a sub-partner. OKX Broker Another option for additional income on OKX is to receive commissions from users of the exchange as a broker. By becoming a broker, the user can attract new users to the platform and receive a percentage of their commissions for this. The percentage of commissions is unlimited. It is calculated separately for each broker depending on its trading volume. Advantages Large international crypto exchange with trading volumes. The exchange has been operating in the market since 2013. Not required verification. Possibility of anonymous trading. Supporting 20 languages. A large list of supported cryptocurrencies. Supporting fiat. Deposit without commission. Available markets: spot, futures, perpetual swaps, options. Quick purchase of cryptocurrencies. P2P transactions. Reduced fees for VIP users and OKB token holders. Different types of orders. High security. Mobile application for iOS and Android. How to start trading on the OKX exchange via the Cryptorobotics platform? To start trading on OKX through the Cryptorobotics platform and use not only OKX, but also Cryptorobotics trading tools, users need to: Create
Top 3 Crypto Exchanges for 2022 Today, crypto exchanges are one of the ways to trade cryptocurrencies. Such platforms allow traders to buy and sell various digital coins and enter the cryptocurrency market with ease. Cryptocurrency exchanges do not have relatively large fees and users can use them from anywhere in the world. In addition, most cryptocurrency exchanges allow their users to use advanced features through which traders can quickly and efficiently enter and exit trades as well as store their assets in a secure crypto wallet. Therefore, an important step in crypto trading is the choice of a cryptocurrency exchange. We have selected for you the top 3 best crypto wallets. Best crypto exchanges Each cryptocurrency exchange in this list has its own characteristics, and we will try to give each of them a detailed description so that users can choose the most suitable option for themselves. Let’s find out which of these exchanges is best for you. Binance Binance is the world’s leading centralized cryptocurrency trading platform founded in 2017 by Changpeng Zhao, who has experience in developing solutions for the Tokyo Stock Exchange. The mission of the Binance cryptocurrency exchange is to provide infrastructure services for the ecosystem. And they are successfully fulfilling their mission by allowing traders to trade hundreds of popular digital coins on Binance, including Bitcoin, Litecoin, and Ethereum. It is worth noting that users do not have the opportunity to trade with regular money, they can only work with cryptocurrencies on Binance. Binance has gained huge popularity due to its low commissions, high liquidity functions, airdrops, and a number of discounts that can be used when using the exchange’s internal cryptocurrency – BNB (Binance Coin). Binance processes approximately 1.4 million orders per second and has over 15 million users worldwide. Therefore, in the short time, the exchange has existed, it has become a leader among other cryptocurrency exchanges. Like any other exchange, Binance provides its users with 24/7 cryptocurrency trading, fundraising, listing, and deposit/withdrawal services. In order to trade, the user must first go through the required registration and verification process, after which, the user will be able to access his account. If users have difficulty registering on the exchange, they can create a Binance sub-account on the Cryptorobotics platform and access all the services of the exchange. More detailed information can be found here. Main features Binance Pool Staking Farming Binance Crypto Loans Fees on the Binance cryptocurrency exchange User status Spot trading Futures trading Fee rate Fee rate Maker Taker Maker Taker Regular user 0.1000% 0.1000% 0.0200% 0.0400% VIP 1 0.0900% 0.1000% 0.0160% 0.0400% VIP 2 0.0800% 0.1000% 0.0140% 0.0350% VIP 3 0.0700% 0.1000% 0.0120% 0.0320% VIP 4 0.0200% 0.0400% 0.0100% 0.0300% VIP 5 0.0200% 0.0400% 0.0080% 0.0270% VIP 6 0.0200% 0.0400% 0.0060% 0.0250% VIP 7 0.0200% 0.0400% 0.0040% 0.0220% VIP 8 0.0200% 0.0400% 0.0020% 0.0200% VIP 9 0.0200% 0.0400% 0.0000% 0.0170% As we have already said, Binance differs from other exchanges with low fees and tempting offers. The fees on the Binance cryptocurrency exchange depend on whether the user is a maker or a taker, the status of the user (regular user or VIP user), and the type of trading (margin, futures, or spot). So, for example, the fixed rate of an ordinary user is 0.1%, and this is certainly attractive for any trader. If you use the Binance Futures platform, you will receive even lower fees. They start at 0.02% for makers and 0.04% for takers, which is very beneficial especially if the trader is making large trades. Withdrawal fees are updated frequently, and you can find new fee information here. Pros Wide range of services and features Impeccable reputation among users Wide range of cryptocurrencies Low fees Cons Complicated registration process Need to improve customer support Limited access in the USA Kraken Kraken is one of the largest cryptocurrency exchanges, which appeared two years after the launch of bitcoin as a means of payment. This platform was founded in 2011 by Jesse Powell, who has been working in the crypto industry since 2001. Kraken is known for its low transaction fees, user-friendly user interface, variety of features, high liquidity, 24/7 trading, and advanced security measures. The company claims that 100% of user funds are held securely in reserves and that they conduct audits to verify that all funds are stored correctly from a cryptographic point of view. After Mt.Gox was hacked causing the well-known exchange to lose nearly a million bitcoins, Kraken helped resolve the dispute. The exchange is currently available in the USA (except New York), Canada, the European Union, and Japan. The main mission of Kraken is to do everything possible to promote and adopt cryptocurrencies, and all users can benefit financially from it. Main Features Advanced features for trading Dark Pools (order book) OTC Staking Cryptowatch Fees on the Kraken exchange One of the main advantages of the Kraken exchange is the lack of fees that other platforms have. However, the user will still have to pay for some services. Below is a table with the services and fees of the crypto exchange. Service name Fees Buying stablecoins (USDT, USDC, or DAI) with USD or other stablecoins 0.9% Buying stablecoins with any other digital coins 1,5% Replenishment of balance in cryptocurrency There is no fee if users have a minimum amount of 0.0001 BTC in their account or the same amount of funds in another digital currency. Replenishment of the balance with regular currency The amount of the commission can be from $0 to $10, depending on the partner
What is a Ladder Smart Order? Ladder smart orders are a type of smart orders that allow traders to open several trades in the form of ladders at once, as well as set ladder Take Profits and Stop Losses for them. The aim of this function helps traders implement a grid trading strategy. Ladder smart orders are an advanced way of placing orders. This type of order is available on both spot and futures exchanges. Ladder orders can be placed by opening a limit, market, or stop-limit order. Possibilities of ladder smart orders in the Cryptorobotics terminal Creating parameters of ladder smart orders: Smart ladder order to buy a coin with entry price averaging Goals in the form of a ladder for selling coins with partial closure on each goal. Goals in the form of a ladder for sale with the “target trailing” function (swap the Stop Loss level when the goals are reached) Trailing the last target at a given level. Standard Stop Loss or Candle Closing. Trailing Stop Loss. Move the Stop Loss level to breakeven when the specified parameter is reached In case of a change in the average entry price, you can set the calculation method for Take Profit and Stop Loss Setting the conditions of the sale, which determines the order of purchases and sales in the presence of ladders. Editing parameters of ladder smart orders: Monitor trade execution, average entry price, and current income. Adding buy orders or canceling outstanding orders. The ability to add targets for sale or delete/edit unfulfilled targets. Enable or disable such take profit parameters in the settings as a trailing ladder, and trailing distance. Enable/disable Stop loss parameters: trailing, breakeven. Editing the Trailing Stop Loss level. Changing the Stop Loss type: Standard, Candle closing. Possibility to cancel outstanding orders and sell all purchased volume using the Close all by market function. Cancellation of all outstanding orders is carried out using the Cancel function. Changing the Calculation method parameter (there are restrictions, not always available). Changing the sales condition setting (there are restrictions, not always available). Advantages of ladder smart orders Management of risks Ability to open short and long positions User-friendly interface An order can be opened on both futures and spot crypto exchanges Opportunity to earn high profits How to start using ladder smart orders in the Cryptorobotics trading terminal? Follow this link. Complete the registration process. Select the Trade tab. Select a trading pair. Select order type. Set the entry price and the number of digital assets for the first order. Click on the +Add order button and repeat the previous step (as many times as you want to divide your buy for). Specify leverage (if it is a futures exchange). Set up Take Profit. Click on the +Add target button and repeat the previous step (as many times as you want to divide your sell for). Customize two additional parameters – trailing targets and trailing distance (optionally). Select TP Calculation Method – Price or TP%. Set the Stop Loss level. Choose one of two Stop Loss modes. Set the Trailing parameter and Transfer to breakeven (optionally). Select the SL Calculation Method option. Select the Closing Conditions option. Set the Cancel smart order if the price is at the SL or TP level before the order is opened (optionally). Press the Buy/Long or Buy/Short button. You can get more information about ladder smart orders here. READ MORE: Staking: what is it and how does it work?
Top 6 crypto to invest in August 2022 The unstable economic situation in the world has forced many investors to reconsider the way they invest. Most investors are reluctant to invest in fiat currency because it is no longer a reliable investment. Their course is influenced by many different factors, for example, various geopolitical changes. This is why cryptocurrencies have become so popular. They are more stable, not controlled by the authorities, and political events have little effect on rate fluctuations. The crypto market provides a wide range of digital coins, which is why many investors have doubts about which option to give preference to. Let’s take a closer look at which crypto to invest in August 2022. What is a cryptocurrency? Cryptocurrency is an electronic currency that is analogous to ordinary money and gold. To date, there are more than 5,000 digital coins, including such as bitcoin, altcoins (Litecoin, Etherium), tokens (Uniswap), and stablecoins (Tether). Digital coins differ from ordinary money in that they are protected and encrypted with special cryptographic algorithms. The main advantage of cryptocurrency is its decentralization and independence from a single control center. This means that cryptocurrency cannot be controlled by either central or government authorities. That is, no one can manage digital coins and influence transactions made within the system since the process data is stored on several devices at the same time. All this is facilitated by blockchain technology, thanks to which cryptocurrency functions and transactions are carried out. What is blockchain? Blockchain is a continuous sequential chain of blocks containing data on all transactions made over a certain period of time and arranged in chronological order. This technology helps users avoid fraud, hacker attacks, and theft and also reliably protects personal data and an electronic wallet. What does the blockchain transaction process look like? Transaction ⇩ Verification ⇩ Recording ⇩ Identification ⇩ Storage Best crypto to invest in August 2022 Bitcoin (BTC) Bitcoin has been and remains the leading cryptocurrency in the market. This digital coin was released in 2009 and is considered one of the most reliable cryptocurrencies to invest in. Even a drawdown in the value of BTC is considered by investors and traders as an opportunity to enter the cryptocurrency market. You can buy and work with Bitcoin on any of the crypto exchanges. Buying and selling Bitcoin has the high liquidity that allows this coin to make a profit regardless of the state of the market. Many investors and analysts say that in the next five years, the value of Bitcoin could reach $100,000. Therefore, Bitcoin can be considered a long-term investment. Cost: $21,942.70 Market cap: $420,575,635,917 Daily trading volume: $45,900,148,879 Ethereum (ETH) Ethereum is a cryptocurrency that ranks second in terms of capitalization and is considered the only competitor to Bitcoin. Technologically, this coin offers users different ways to use it. The main function that it performs is the automation of the exchange using smart contracts. Ethereum smart contracts allow users to make fast and secure money transactions without intermediaries. The Ethereum team is constantly working on creating new business models and decentralized applications, which makes this digital coin a promising investment. Ethereum price growth is expected to continue due to the reliability of the project, a good roadmap for 2022, and the transition to an updated version of Ethereum 2.0 in the current year. According to many experts, the value of Ethereum could rise to $8,000–$10,000 by the end of 2022. Cost: $1,524.47 Market cap: $186,315,428,033 Daily trading volume: $30,391,298,294 Solana (SOL) Solana is a relatively new cryptocurrency that was launched on the market in 2020. Nevertheless, it is one of the most promising coins for investment. Solana attracts investors with some of its features: fast transaction processing and low commissions. Solana was developed to support decentralized finance, decentralized applications, and smart contracts. The platform uses the Proof of Stake (PoS) and Proof of History (PoH) protocols, through which transaction confirmation is fast and secure. SOL is the native token of the Solana platform. The cost of the SOL token began to grow from the moment the project participated in the initial coin offering (ICO) in 2018. Then the project managed to get 1.76 million dollars. With the help of SOL tokens, platform users can access the Solana blockchain, which allows the creation of decentralized programs (Dapps). It is worth noting that Solana processes transactions much faster than Ethereum. The number of transactions processed on the Solana network is approximately 3,187 – 65,000 transactions per second, while Ethereum processes only 15 transactions per second and Bitcoin – from 5 to 7. Accordingly, the commission in the Solana network is much lower than in the Ethereum network since the size of the commission depends on the speed of work. Thus, the commission for Solana is less than one cent per transaction, for Ethereum it is $25-53, depending on the cost of electricity. In August 2021, the value of the token increased by more than 500%. In September, the quotes for the coin reached $215 per token. The potential of this coin is very high, so investing in Solana is more than justified. Cost: $43.57 Market cap: $15,086,753,168 Daily trading volume: $2,146,350,281 Polkadot (DOT) Polkadot (DOT) is one of the most popular platforms that provides a variety of solutions through the efficient use of multiple blockchains from the same network, called parachains. With the help of parachains, the platform provides its users with the necessary level of anonymity. A feature of the system is that transactions can be executed at once and be apportioned between blockchains. The project has its own DOT token, which is responsible for merging all connected blockchains. The investment in Polkadot is expected to pay off in the coming months, as this project is developing at a tremendous pace and could have the same impact on the cryptocurrency market as Ethereum in the future. According to many experts, the cost of the token can rise to $40-60. Cost: $7.68 Market cap: $7,554,292,865 Daily
Overview of the most eco-friendly cryptocurrency for investment Many international companies are trying to maintain the ecology of the environment. In particular, the business aims to reduce carbon emissions into the atmosphere. This trend has also affected the cryptocurrency industry. For example, in May 2021, the electric car manufacturer Tesla suspended the sale of cars for bitcoin due to the negative impact of cryptocurrency mining on the environment. Following large companies, investors also began to pay more attention to the compliance of digital coins with “green” standards. We decided to find out which coins are the least harmful to the environment and compiled a list of the most environmentally friendly cryptocurrencies. How to determine the environmental friendliness of a cryptocurrency? The safety of digital coins for the environment depends on the algorithm. From a technical point of view, all digital assets are divided into two types: Proof-of-work. Proof-of-stake. Proof-of-work (PoW) is designed to solve complex mathematical problems using the technical equipment of the miner. Miners are rewarded in the form of cryptocurrency for adding each verified block (information about completed transactions) to the general chain, which is called the blockchain. This process is complex and requires significant computing power. The more powerful the miner’s equipment, the more he can make a profit. Mining is the extraction of cryptocurrency with the help of special equipment. The essence of mining is to add blocks (newly completed transactions) to the blockchain. Miners are people who do this work and get rewarded for it. Unfortunately, mining equipment consumes a lot of electricity, the production of which has a negative impact on the environment. Also, the production of equipment also harms the environment. At the same time, PoW involves a gradual increase in the complexity of cryptocurrency mining. The process provokes market participants to periodically increase the amount of computing power connected to the network. As a result, electricity consumption is growing, which increases the negative impact of mining on the environment. Proof-of-stake (PoS) is similar to PoW and is used for staking. However, unlike PoW, the essence of how PoS works does not depend on the equipment’s computing power, but on the amount of cryptocurrency investment. In other words, the goal of proof-of-stake is to lock up as many digital assets as possible in the liquidity pool in order to increase your income level. PoS does not require powerful computing hardware. Thus, this system is not so energy-consuming and harmful to the environment. Let’s move on to the list of the most eco-friendly cryptocurrencies that an investor needs to pay attention to. Rating of the most environmentally friendly cryptocurrencies This list contains the most environmentally friendly digital coins. Let’s take a closer look at each of them. Nano (NANO) This green cryptocurrency operates on the basis of the Open Representative Voting (ORV) algorithm. Thus, the Nano platform is based on a voting system instead of using energy-consuming hardware to confirm transactions. This means that platform users must vote on transactions. The project developers position their product as an eco-friendly alternative to PoW. ORV makes the Nano extremely energy efficient. Thanks to this algorithm, the digital coin managed to top the ranking of the safest cryptocurrencies for the environment. Cardano (ADA) Cardano (ADA) is an eco-friendly cryptocurrency that runs on a PoS algorithm called Ouroboros. The Cardano network processes about 1,000 transactions per second. This is significantly more than many PoW competitors. For example, Bitcoin processes 7 transactions per second. This network transmission capacity of the Cardano makes ADA one of the safest coins for the environment. Stellar (XLM) Stellar is a fork of the popular Ripple project. The Stellar technology actually has the same capabilities as the Ripple network. Initially, the Stellar platform functioned on the same protocol as Ripple, but in 2015 it switched to using its own code while retaining all the functionality of Ripple. The main difference with Stellar is that anyone can run their own node to keep the network running. This approach allowed the developers to speed up the system and make it energy efficient. The high speed of the systems and low energy consumption made the project in demand. Today, many large companies (such as IBM and Deloitte) use Stellar developments. IOTA (MIOTA) IOTA is a green cryptocurrency that differs from other rating digital coins in that it does not operate on a blockchain but on a special distributed ledger technology. This approach has helped developers move away from energy-intensive consensus algorithms in favor of more energy-efficient tools. The IOTA team plans to continue working on reducing energy costs when working with MIOTA. Such prospects make the project one of the most environmentally friendly in the market. EOS (EOS) The project developers are working on speeding up transactions on the EOS network so that the system can process a million transactions per second. The project operates on the basis of the PoS subtype—Delegated Proof of Stake (DPoS). This technology, unlike proof-of-stake, allows for a high level of platform decentralization. Also, DPoS makes the project environmentally friendly. Therefore, EOS is on the list of the most environmentally friendly cryptocurrencies today. Ripple (XRP) XRP is a cryptocurrency whose network is supported by a limited number of validators and does not require mining. Among the list of validators, we can distinguish companies such as Ripple Labs and other nodes approved by it, which are owned by crypto exchanges, banks, and other financial partners. Due to the limited number of validators and the absence of mining, the Ripple network can process more than 1500 operations per second, which makes it the greenest cryptocurrency. Algorand (ALGO) The project works on the basis of the PoS algorithm. According to the official website of the project, the Algorand team wants to make it the first carbon-neutral blockchain network. Algorand developers plan to achieve results through cooperation with the ClimateTrade eco-project. How much do cryptocurrency transactions consume electricity? It is also necessary to pay attention to the cost of conducting operations with cryptocurrencies. According to
What is Impermanent Loss in DeFi? If you have ever worked with DeFi, you must have come across the concept of Impermanent Loss. An Impermanent Loss occurs when you provide liquidity to a pool and the price of your locked coin changes relative to another one since it was deposited. The larger this change, the more you are exposed to Impermanent Losses. In this case, the excessive volatility of the tokens deposited in the pool can lead to losses in dollar terms when withdrawing funds. What is an Impermanent Loss? At the moment, many DeFi projects are experiencing a period of explosive growth. We are talking, for example, about such projects as Uniswap, SushiSwap, or PancakeSwap. With their help, anyone who has the funds can become a market maker and earn commissions by locking their assets into the liquidity pool. It does not require any specific knowledge, special equipment, or even large sums of money. However, this process has some advantages and disadvantages. One of them is impermanent losses. Impermanent Loss (IL) is a temporary loss of funds sometimes experienced by liquidity providers for AMM due to the volatility of a trading pair. This indicator is expressed in dollars and shows the loss relative to the amount of the actual withdrawal, compared to the fact that the investor simply holds his assets. Many people often interpret IL incorrectly, adding fees, spreads, and slippage to this value. But in fact, none of this affects IL. The impermanent loss is calculated using a well-defined formula and does not include incremental costs. What is AMM? AMM is an autonomous decentralized exchange managed by software. The prices of assets held in AMM liquidity pools are controlled by an underlying algorithm. Liquidity is provided by liquidity providers (LPs), who usually contribute equal amounts of two assets to the pool. For example, it is ETH and DAI. AMM was first described on Reddit by the founder of the Ethereum platform, Vitalik Buterin, as a way to simplify the creation of a market on smart contracts. In 2017, the first AMM Bancor appeared, and a year later, Uniswap appeared, which is currently considered the market leader. Using automated exchanges, investors can deposit their coins into liquidity pools and in return receive rewards (in the form of fees charged from traders), which are calculated in proportion to the shares of the investment. Usually, LPs are also awarded project tokens, which give them the right to vote on decisions to make key changes to the protocol and act as a kind of project shares. Thus, liquidity providers are interested in placing their assets in AMM, as they receive remuneration in the form of a commission from traders and project tokens. However, they may encounter Impermanent Loss, which poses a significant risk to their income. Why does Impermanent Loss occur? The AMM protocols are managed by a mathematical algorithm that automatically balances the 50:50 asset ratio in the pool and thus determines their value. The formula X x Y = K is used as a pricing mechanism, where X and Y are different digital coins, and K is a constant value that should not change before and after the transaction. This algorithm of operation allows the market to function autonomously, creates an opportunity for arbitrage, but also causes Impermanent Loss in DeFi. The key reason for the occurrence of an Impermanent Loss can be called the discrepancy between the value of coins in the liquidity pool of the real market situation. How to prevent Impermanent Loss? One of the simplest and most effective ways to mitigate Impermanent Losses is to maintain liquidity in low volatility pairs. First of all, preference should be given to older and larger projects that already have their own formed price and are less subject to volatility. These include cryptocurrencies from the TOP-20 rating by capitalization. Secondly, you need to choose pairs where the value of one asset relative to another remains relatively stable. For example, it can be paired with stablecoins. Another thing is that this option for investing is limited in terms of potential price growth. There are also special tools and platforms that allow liquidity providers to mitigate Impermanent Losses. For example, the AMM Balancer protocol allows you to set individual proportions for liquidity pools with different pairs. Thus, liquidity providers can try to anticipate market movements and mitigate their potential Impermanent Losses if asset values change. It is better to start investing in AMM in small amounts. Especially if you are just getting to know the market or trading pair. Small investments will help, with minimal risks, to assess in which direction the value can move and what real losses can be incurred. Be sure to find a reliable and proven AMM platform. The DeFi space is now at its peak and anyone can fork an existing project, adding only minor changes to it. This can cause errors in the operation of the protocol and lead not to temporary, but to quite real losses. Conclusion Impermanent Loss is one of the main terms that liquidity providers should be familiar with. Many of the most popular AMMs, such as Uniswap, PancakeSwap, and others, have focused on ease of use without providing any mechanism to prevent Impermanent Losses. Therefore, investors should have a good understanding of what LP is, how losses are formed and how they can be prevented. READ MORE: Staking: what is it and how does it work?
How to create a Binance sub-account on the Cryptorobotics platform? Today, the Binance exchange occupies a leading position among other crypto exchanges in terms of trading volume. This exchange allows users from all over the world to buy and sell cryptocurrency 24/7, perform P2P transactions and use various crypto trading tools. But there are some restrictions for residents of some countries that prevent them from accessing the services of the exchange, including deposits in cryptocurrencies, entering transactions, and withdrawing funds. To avoid restrictions, crypto exchange users can create a Binance sub-account on the Cryptorobotics trading platform. Let’s figure out how to create a sub-account and start trading on Binance without restrictions. What Is a Binance Sub-Account? Cryptorobotics has recently implemented an additional feature that allows you to create a sub-account for trading cryptocurrency on the Binance exchange. A sub-account is a division of one account of the platform into several additional accounts of users. Sub-accounts on the Binance exchange are a support feature for traders that allows them to diversify their risks, implement different trading strategies on each sub-account, bypass restrictions in different countries, and have full control over their funds. Users can create up to 2 sub-accounts on the Binance and Binance Futures exchanges. Profit, loss, and balance are displayed for each sub-account separately. Let’s take a closer look at what opportunities sub-accounts have on the Binance exchange. Binance Sub-Account Features Sub-Accounts allow users to: Easily and quickly create an account on the Binance exchange without restrictions. Create accounts in countries where there are problems with avoiding restrictions and accessing popular functions for cryptocurrency trading. Create a sub-account if you have a main account to split the balance for different trading instruments. Use various features of the Binance exchange and the Cryptorobotics platform to trade cryptocurrencies. Deposit and withdraw money from crypto wallets. Track the history of all logins to sub-accounts. What Cryptorobotics Features Are Available for a Binance Sub-Account? The Cryptorobotics trading platform provides various tools for trading cryptocurrencies on Binance. Let’s look at them in more detail. Cryptocurrency trading bots. Cryptocurrency trading bots are software designed to buy and sell digital assets. The purpose of this tool is to maximize profits and minimize risks and losses. Cryptorobotics allows its users to use five types of bots to trade crypto using a sub-account on the Binance and Binance Futures exchanges: Optimus, Cyberbot, and The One bot (Binance). Crypto Future, Channeler AI (Binance Futures). Crypto signals. Crypto signals are an algorithmic tool used to detect according to the analytics prediction, which is implemented on the data obtained during the analysis. The essence of the tool is that the analyst gives the trader information about possible profitable transactions on cryptocurrency exchanges. All orders are executed automatically according to the parameters set by the analyst. Copytrading. Copytrading is an algorithmic trading tool that allows platform users to copy the trades of experienced traders. Using this feature, trading beginners do not just blindly copy trades but receive a ready-made profitable strategy from a professional trader. Autofollowing. Autofollowing is a fully automatic feature that works with the help of a bot. The bot receives signals from analysts and then processes them. After the bot processes the received signal, it starts to enter the trade. Autofollowing allows traders to earn passive income and is suitable for both experienced and newcomers to trading. OCOs, or smart orders. This order type includes Stop Loss, Take Profit, and Trailing. This feature is designed to minimize the risks and loss of traders’ funds, as well as increase profits. Ladder smart order. Ladder smart orders are a feature that is designed to execute orders in the form of a ladder. This type of order allows you to place additional buy/sell limit orders in the book order. And instead of buying or selling a coin at a single price, a trader buys a coin when the price falls and sells it when the price rises. This is done with the aim of entering a trade at the average (more profitable) value of the asset, and then exiting it in parts (by placing several Take Profits). Advantages Fast registration on the Binance exchange. Access to various trading instruments without restrictions. Ability to implement various trading strategies. Carrying out fast and uninterrupted transactions. Security. Only the owner of the sub-account has access to the deposit and withdrawal of all digital assets. How to Start Trading on Binance Without Restrictions? To create a sub-account and start trading cryptocurrency on Binance without restrictions, the user needs to follow these steps: Go to the Cryptorobotics platform. Complete the registration process (if the user does not have an account on the platform yet). A Binance sub-account can be accessed through an account created by a user on the Cryptorobotics platform. Go to the “Account” tab. Click on the “Add Binance Sub-Account” button. Then API keys are automatically generated and added to the Binance exchange. To add API keys for Binance Futures, the user needs to switch the corresponding slider and set the name of the sub-account. After reading the rules, click on the “Create a subaccount” button. Replenish the personal crypto wallet of the sub-account. After completing the above steps, Binance Sub-Accounts will be available in the Exchange Accounts section for the Binance and Binance Futures exchanges. How to Fund a Spot Wallet of Binance Sub-Account on the Cryptrobotics Platform? To fund their main (spot) wallet, the user must return to the Binance sub-accounts tab and click on the “Deposit” button. Choose cryptocurrency and crypto wallet. Then you need to click on the “Get an address” button. Next, you need to transfer funds to the wallet address. How to Fund the Futures Wallet of a Binance Sub-Account on the Cryptrobotics Platform? To replenish the future wallet, the user needs to transfer money from the spot wallet. To fund a futures wallet, the user must follow these steps: Go to the Binance Sub-Accounts tab. Click on the “Transfer” button. Select the accounts between which you plan
What is a grid trading strategy? Grid trading is an automated cryptocurrency trading strategy that allows placing buy and sell orders at preset intervals around a fixed cost of an asset. Visually, this way of trading resembles a grid, hence the name. Grid Trading works well in volatile and competitive markets such as the crypto market. Grid trading provides profitability every time the sell price exceeds the buy price during a flat movement in the market by automatically executing low buy orders that lead to high sell orders. This fact eliminates the need for market forecasting. However, a number of important factors must be taken into account for this strategy to work effectively and make a profit in the cryptocurrency market. For example, a good choice for this type of trading is a cryptocurrency pair, the rate of which is characterized by frequent and significant rises and falls. Why is it worth using a grid trading strategy? Reliably. Grid trading has been around for a long time and is considered a proven and profitable strategy. A huge number of successful traders have been using this method of trading in various markets over the years. Conveniently. The grid trading strategy is easy to understand and use because it does not require complex calculations, observations, or market data research. This method can be used even by inexperienced traders in the cryptocurrency market. Flexible tactics. Grid trading uses the most fundamental trading concept (buy low, sell high, and profit from rate movements), so it can be applied to almost any market and make a profit, regardless of the trend or market behavior. Risk management. This strategy allows the trader to manage risks more effectively by adjusting the risk/profit ratio. You can use a grid strategy to make consistent small profits with minimal risk by choosing a stablecoin pair such as BUSD/USDT or use riskier strategies to generate potentially high profits by choosing a coin with a low market cap and with big fluctuations. Suitable for automated trading. Grid trading is ideal for automation due to the fact that all its actions are predetermined and are not related to market behavior. This is one of the best methods for traders wishing to take their first steps towards automation as it can work in almost any market, under any conditions, and can be set to almost any time frame. How to start using a grid trading strategy via the Cryptorobotics platform? Today, users can implement various trading strategies on the Cryptorobotics platform, including grid trading. This is all thanks to various trading instruments available on the platform. To use the grid strategy, users can set up ladder smart orders. Ladder smart orders is a trading tool that is designed to open orders in the form of a ladder. This type of order helps to open additional buy/sell limit orders. And instead of buying or selling a coin at a single price, a trader buys a crypto asset when it falls and sells it when the value rises. The goal of a ladder smart order is to enter a trade at the average price of a digital coin, which is more profitable, and then exit it in parts by placing several Take Profits. Possibilities of ladder smart orders: Open a ladder smart order to purchase a digital asset by averaging the entry price. Set targets in the form of a ladder to sell a digital asset with partial closing on each target. Customize goals in the form of a ladder for sale with the “target trailing” function (rearrangement of the Stop Loss level when the targets are reached). Trailing the last target at a given level. Select Standard Stop Loss or close by a candle. Customization of Trailing Stop Loss. Moving the Stop Loss level to breakeven when the specified parameter is reached. In case of a change in the average entry price, you can set the method for calculating Take Profit and Stop Loss Setting the conditions of sale, which determines the order of purchases and sales in the presence of ladders. How to start using ladder smart orders in the Cryptorobotics trading terminal? Complete the registration process on the Cryptorobotics platform. Go to the “Trade” tab. Select a crypto pair. Select order type Customize the entry price and the number of digital assets for the first order. Click on the +Add order button and repeat the previous step (as many times as you want to divide the purchase into parts). Set leverage (if it is a futures exchange). Set Take Profit. Configure two additional settings – trailing targets and trailing distance (optional). Choose the Calculation method (TP price or TP in %). Customize the Stop Loss level. Select the Stop Loss mode. Set the Trailing and breakeven parameters (optional). Select the Calculation Method option of Stop Loss. Choose the Closing Conditions option. Set the Cancel smart order if the price is at the SL or TP level before the order is opened (optional). Press the Buy/Long or Buy/Short button. Start grid trading. READ MORE: Staking: what is it and how does it work?
What Is a Bitcoin Wallet? Cryptocurrency is a completely virtual currency that does not have a physical form, so when you buy a cryptocurrency, you need to store it in a bitcoin wallet. Nowadays, there is a wide range of bitcoin wallets and it is quite difficult to make the right choice. Let’s see what a bitcoin wallet is, how to use it and which one to choose? Definition of Bitcoin Wallet A bitcoin wallet is a program that is necessary to work with cryptocurrencies and store coins in them through the blockchain. When dealing with it, you do not depend on the banking systems, can quickly transfer funds around the world at any time, and remain anonymous. Despite the name, a bitcoin wallet is designed to store and operate a variety of cryptocurrencies, not just bitcoin (BTC). Each wallet has a public key and a private key. The first is the wallet address, a set of characters that is visible to everyone who sends funds to it, whether it be replenishment or transfers. The private key is generated from random numbers, is closed from outsiders, and is used to sign transactions. The seed phrase will help you recover your private key if it is lost. It is the same random sequence of words. What Are the Types of Bitcoin Wallets? There are several types of wallets that can be roughly divided into two groups: Hot wallet – This group includes wallets that work on devices connected to the Internet. They can store coins but in small quantities. They allow you to quickly and conveniently send and receive cryptocurrency. Cold wallet – These kinds of wallets work offline. Due to this, they are characterized by a high level of security but are less convenient in everyday use. Types of Cold Wallets Hardware Wallets Hardware wallets are considered one of the safest types of bitcoin wallets as it doesn’t require an internet connection. Therefore, a hardware wallet is reliably secured against hacker attacks. Anyway, the owners of hardware wallets should store their devices in a safe place to avoid device theft by intruders. Desktop Wallets Such bitcoin wallets are installed on a computer, which allows their users to completely control their funds and private keys. Desktop wallets function as an address via which users have the opportunity to send or receive digital coins. Paper Wallets A paper wallet is a piece of paper with a private key and a public address printed on it. Among all types of cold wallets, paper crypto wallets are considered the most insecure. You can get the paper wet, accidentally throw it away or drop it on the street, and then you will lose access to your funds. However, it must be admitted that malware does not threaten such a cold wallet. Your private keys are printed on paper, so they are protected from viruses and hackers, but you should take care to store them in a safe place. If you lose your paper wallet and someone finds it, then most likely you will lose your funds. Types of Hot Wallets Hot wallets are considered the most popular among other bitcoin wallets. These wallets are used via the internet and can be accessed online or from a mobile device. Their popularity is because they can be acquired relatively inexpensively or even for free. Mobile Wallets These bitcoin wallets are installed on a smartphone and suit those who use cryptocurrency for peer-to-peer transactions, online shopping, bill payments, money transfers, etc. However, since hot wallets are used online, they can be hacked, so users should be very careful when choosing such a wallet. It is recommended to choose highly secure bitcoin wallets that use two-factor authentication (2FA) and multi-signature technology. When selecting such a type of wallet, it is necessary to pay attention to its level of protection and its provider’s reputation. Web Wallets Hot wallets also include browser-based solutions. Their big advantage is wide accessibility. You can use it through a web browser or a mobile phone. The disadvantage is the presence of a “third party”, an operator that controls the platform. Theoretically, he could have access to your key. Therefore, browser wallets should be selected with extreme caution. Best Bitcoin Wallets Binance EXMO MetaMask MathWallet Coinbase Trust Wallet Binance Chain Wallet Bitcoin Wallet Samourai Wallet Mycelium BitPay Trezor Exodus Trustee Wallet Electrum Conclusion Both cold and hot wallets have their advantages and disadvantages. All of them are intended to store your digital coins, and the choice of a particular wallet depends on your requirements and needs. Users should decide for themselves how much they are ready to pay for a bitcoin wallet and what protection level and accessibility they need. If you are looking for a low-cost or free wallet with instant access for paying bills, money transfers, online shopping, and other similar operations, then hot wallets with an Internet connection will be suitable for you. If you wish to store private keys and digital coins in a safe place, you can use cold wallets. To sum it up, it is worth saying that every user has to select the bitcoin wallet that best suits their needs. However, regardless of your choice, you should always be careful when giving information to wallet providers and protect your wallet with backups and strong passwords, as well as make sure no one else has access to your bitcoin wallet. Thus, you can protect yourself from risks and store your funds in a safe place. READ MORE: Staking: what is it and how does it work?
What is staking? Staking is an alternative to mining and is considered one of the best investments in the cryptocurrency market. Let’s take a closer look at what staking is, how you can make money on it, and what risks an investor may face. What is staking crypto? Staking is the process of locking a certain number of digital coins in a cryptocurrency wallet in order to ensure the operation of the blockchain in exchange for receiving a reward. In many cases, this process depends on the users who take part in the transactions on the blockchain using a personal cryptocurrency wallet. The staking process uses the Proof of Stake (PoS) algorithm – proof of ownership. This method of confirming transactions is used in various blockchains running on PoS or one of its variants. The main feature of staking is that it is considered a complete replacement for mining. Staking allows investors to earn on cryptocurrency without the need to purchase specialized equipment. Staking vs. mining Mining is the process of processing transactions on a blockchain using the Proof of Work (PoW) algorithm, designed to keep the network running. In turn, the miners are participants in this process. They generate the blocks needed to store account and transaction data. In order to get a new block, the user needs to perform certain calculations and find a secret combination of symbols. Let’s see what is the difference between staking and mining. Staking Mining Transaction processing is carried out using Proof of Stake. Transaction processing is carried out using Proof of Work. To mine blocks, investors need to buy and hold tokens. Mining blocks requires powerful equipment. An eco-friendly way to create a chain of blocks in the blockchain that does not require additional costs. It requires a lot of energy and is harmful to the environment. The staking process is simplified and considered more open to members of the blockchain community. Mining requires more involvement in the process. It does not require technical knowledge and skills. To make money on mining, you need to be well versed in technology. Types of staking The principle of operation of staking is similar to a bank deposit – the user transfers funds to the account, stores them, and receives passive income for this. The more funds are deposited into the account, the more income the user will receive. In addition to the basic principle of how staking works, each individual blockchain system may have its own terms and conditions. Today there are three types of staking: locked, flexible, and DeFi staking. Let’s take a closer look at each of them. Locked Staking Locked staking is for users who want to make big profits. It specifies in advance how long the funds will be frozen. That is, investors themselves can choose the period of storage of their tokens. It can be a week, a month, or a year. Please note that funds will not be available for trading or withdrawal during the selected time. Naturally, the investor can buy them back without waiting for the end of the period, but in this case, he will be able to return only his invested funds, without additional interest. It is also worth noting that the percentage of income for fixed contracts is higher than for other types of staking. Flexible Staking Unlike locked staking, flexible staking does not have an end date for storing coins and the investor can stop participating in the validation process at will. As a rule, interest begins to accrue within 24 hours after the funds are deposited, and rewards are paid every 30 days. It should be noted that interest will be accrued until the user withdraws the coins. Flexible staking is suitable for those who are not ready to freeze their funds for a long time. Coins are stored in a spot wallet, where investors are rewarded for holding their funds. DeFi staking DeFi (decentralized finance) is a set of services that operate on the basis of the blockchain. They include features such as lending, insurance, forecasting, and more. DeFi projects are based on the use of smart contracts. Their advantage lies in the fact that they provide automatic execution of transactions in compliance with predetermined conditions for their conduct. DeFi staking differs from conventional staking in that third parties are involved in the process. For example, it can be organizations or individual users who take cryptocurrency from another user on credit. The system is designed to control the execution of transactions. But in any case, it is necessary to check the level of efficiency of an individual smart contract, because theoretically, it can have vulnerabilities. DeFi staking is considered one of the attractive types of investment for several reasons: The ability to immediately withdraw earned interest during the day. The income can be 100% per annum and higher (depending on the chosen coin and the period of its storage). Working with conventional blockchains that use PoS, it is difficult to get more than 10% per year. Users are protected from fraud by smart contracts. Staking risks The possible drop in the value of a digital coin. The lower the coin rate, the lower the reward amount (in fiat). Therefore, it is necessary to choose tokens with a low level of volatility, which demonstrate dynamic or stable growth. Investing in digital coins that have a high level of volatility can lead to loss of funds, especially with fixed staking. In the event of a strong drop in the value of the coin, the user will not be able to sell it. The risk of losing an account in online service or on a crypto exchange. Therefore, all passwords and logins should be stored in a safe place. Fraud risk. If the validator asks to send him money, this is a clear sign of fraud. Such requests must be ignored. How to choose a coin to stake? When choosing a cryptocurrency, it is necessary to take into account the volatility