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Tag: defi

I’m buying into DexCheck (DCK); Here’s why you should consider doing the same.

Alright, I get it; investing in a promising low-cap crypto project is a no-brainer and everyone knows this. So I guess you are wondering why I am making a fuss about this. But DexCheck is actually a bit special to me. The feeling is the same as when I bought Fantom (FTM) at $0.003 in 2019. I’ll save the long story for whenever.

I stumbled on DexCheck while researching cool low-cap crypto projects to invest in since the whole market looks like a black Friday discount right now. The potential for the $DCK token to moon in the near future is there, but the technology, the community, and the team (of course!) are what impressed me most. I’ll put an early disclaimer, this is simply a review by an impressed user and not financial advice. Having said that, I’ll reiterate the positive impression the application has left on me.

If you wonder what DexCheck is;

DexCheck is an investor’s best friend. It is a suite of investment utilities powered by Artificial Intelligence (AI) and blockchain technology. DexCheck utilities range from deep asset analysis to expert investment suggestions backed by strong data. With an integrated decentralized exchange powered by Kyberswap, DexCheck lets you implement your analysis by making a sale or purchase. It offers a full suite of trading utilities and tops it off with a Revenue sharing program that offers passive income opportunities to top users and community members.

Sometimes I’m not so good with words and I admit that this description is a bit shallow. I will take these features one after.
First, from my experience so far, DexCheck truly works!

I subscribed for a DexCheck Oracle account that allows me to enjoy all of the available privileges. To subscribe for a DexCheck Oracle account, you only need to stake 100,000 DCK tokens (luckily this costs less than $2500 at current token price!) and enjoy staking rewards as well!

Free-to-use DexCheck utilities include Token Analytics, Whale tracker (For NFTs and Fungible tokens) and the Token unlock features.

For traders who take the vesting schedule of assets into consideration before investing, the Token Unlock feature details the vesting scheme for every token. You can now see when the next big supply is getting released with a single click.
The DexCheck Whale Tracker.

I’m particular about the DexCheck Whale Tracker! The Whale Tracker screens through decentralized exchanges to detect huge transactions and the wallet behind these transactions. It offers a one-click access to a full analysis of the wallet. Considering the prevalence of whales in the crypto space, this is a must-have. I snipped up a couple of giant PancakeSwap and Uniswap Whales with realized PNLs of over $150,000 and set up an alert on their trades. This takes the bulk of my Whale watching duties!

Trading Features for Pros!

The upgraded version of the Whale Tracker feature is available for pro traders. The Top Traders feature screens through Dexes and NFT trading platforms to detect wallet addresses with the highest ROI on trades. Using the top traders feature lets you see what the best traders are trading and how much they commit to their trades. This is available for NFTs and Fungible tokens as well.
Alright, I’ll get to my favorites, the Telegram bot and DexCheck’s trademark insightGPT.

InsightGPT: In-depth Trading Analytics powered by Artificial Intelligence!

In case the whale trackers and the Top trader’s features don’t cut your workload enough, insightGPT is what you’ve been looking for! InsightGPT is a next-level automated trading analytics application. According to DexCheck, InsightGPT leverages Artificial Intelligence to analyze vast data in real-time, enabling it to provide actionable insights. InsightGPT offers smart money alerts and details on winning traders.

InsightGPT is your loyal transaction and big operation sniper! The dashboard is an all-around optimized interface that allows you to get regular delivery of interesting moves for specific tokens and take prompt action, you can quickly follow the featured wallet to get an alert when the trader moves again.

For most, InsightGPT is an advanced version of the wallet tracker and the top trader feature, but it is actually a way to augment the two. It combines the core functionalities of the two applications but the best trading will be made by the trader that is able to fuse the three utilities together.

DexCheck Telegram Bot: Advanced crypto trading Telegram bot

It gets even better with the DexCheck Telegram bot. I admit that sometimes, it could be tedious to swing between different decentralized exchange platforms just to make your trades. This is a time-tasking process as well. The Dexcheck Telegram bot is a fix for this. It offers investors a way to execute normal and advanced trading activities from the comfort of their Telegram Messenger.

The integration process for the Telegram bot is easy and requires no technical experience. Once installed, you can trade on decentralized exchanges, Track cryptocurrency wallets, and perform advanced trading operations like Sniping trades. I’m a bit excited about the potential of this particular feature.

The Snipe trading bot screens exchanges to detect profitable opportunities and trade accordingly. For instance, the snipe trading bot notices newly added liquidity pools and moves to make a purchase before anyone else does. This allows you to purchase tokens at the lowest price and trade them in for a profit when full trading starts. The Snipe trading bot is equipped with advanced trading and analytics algorithms that enable it to run trades better than the regular trader. One thing I left out, the Snipe bot is automated, you can simply set it up with funds and it runs on its own.

You could mention a handful of similar projects, but DexCheck stands out for a couple of reasons. I’ll list them;

A Truly working application

I took the time to go through the features on DexCheck. It is easy to draw up a prototype but harder to develop an application that works as stated on paper. DexCheck runs as stated and the positive first impression was sustained throughout the times I used the application. From the smart contract token analytics to the trader and wallet analytics to the advanced Telegram Bot and the AI-powered InsightGPT. Each application leaves you coming back for more. Even without subscribing to the pro-trader feature, DexCheck offers the utility that most normal traders lack and crave.

An intuitive interface

DexCheck might sound very technical and it actually is. But these complexities are packaged into an intuitive user interface. Regardless of your technical abilities and your knowledge of the crypto space, DexCheck is very easy to use. Each feature is distinct and easily accessible. In case of confusion, the DCK team has also shown dedication to guiding users through using the application.

Have a question? You can join the Telegram community and the MODs will be happy to help!

Investor-friendly tokenomics

The DCK token is at the heart of the DexCheck applications. The DCK token powers the DexCheck application’s economy and supports its ecosystem to promote application usage and incentivize user involvement. DCK is a BEP-20 token on the Binance Smart Chain. The DexCheck team has developed a scheme to grow the DCK token and also fast-track the project’s growth through its token.

Via a symbiotic growth scheme, the DexCheck application and its token are designed to grow in utility and value. DCK is used in the project’s governance through the DexCheck DAO. DCK holders vote on new features and changes to the project’s operations. DCK token is also used for purchases, subscriptions, and user reward schemes through the Revenue sharing program.

Check out active trading pairs for the DCK token.

A Promising Team

This should actually come first but I had to save the best for the last. The success of any project depends 60% on the team behind it. Looking at the DexCheck team, the advisory team, and the partners, we could see this project climb to higher highs in the near future. Partner projects are prestigious and DexCheck is integrating across notable blockchain networks and communities including Polygon and Fantom. The DexCheck advisory team is made up of top officials from Polygon, ChainGPT, Kucoin, and Maven Capital.

What’s Next?

I took a look at the DexCheck roadmap and it looks packed for the future, the last quarter of the year will surely see many exciting releases the AI-DexFolio and the AI-arbitrage scanner are some of the new features I am looking forward to. It is interesting to see how the project employs Artificial Intelligence in these two new features.

I’ve personally picked interest in arbitrage trading multiple times, but it is clear that arbitrage trading will be a very tough thing to do without some sort of automation, the AI-arbitrage scanner might just be the tool that finally unlocks arbitrage trading.

Closing up

The thing is, I attempted to go through every utility that DexCheck offers, but this whole article is in fact, a scratch on the surface. I’ll eventually follow this up with even more articles and possibly some user guides and personal tips. Not sure how soon this will be anyway. However, the project is evidence of the evolving trading culture and the role of advanced technology in improving trader’s decisions. As a cryptocurrency investor, you are already wondering how these features will boost the price of the DCK token, I do too. And while I already bought some DCK tokens, I’m focused on discovering the best ways to put the basket of utilities on the platform to use. The general design makes it easy to do this.

Loving DexCheck already?

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16/10/2023
Snack Talk: The Gobsmack!

Hey guys! Yeah…’guys’ does really sound chauvinistic but I’m sure everyone understands. Anyways, shitposting isn’t really my thing and this ‘Snack talk’ thing is a literal shitpost. Like two beer lovers discussing their favorite brand, a better example is two memecoin investors discussing the ‘utility’ of their cat-themed memecoins. Cat-themed memecoins don’t really do so well, relative to the doggy ones, but I get it…we all do.

Alright, I named this one ‘The Gobsmacked’ and I must say I’m gobsmacked by a lot of things. First, uptober doesn’t seem to be turning out great and the charts are looking like it’s Halloween already. Someone played MJ’s thriller on the bus today. Noisy, but that’s exactly what the whole market sounds like. I could go on with the second but if the charts continue this way then Christmas might be in jeopardy. But it doesn’t matter, we are here for the technology anyway. I said ‘we’ like we are not all waiting for the next earndrop so we can ‘cash out’.

Speaking about earndrops, I did claim a few $TIA from the Celestia airdrop. You can check your eligibility here too. Celestia is working on a couple of things that could become useful for the whole space. A bit excited to hold a (little) stake. Anyway, that’s it with the brief commercial.

JP Morgan just launched a tokenized collateral network, that should come second on my list but, then, these guys have been all around crypto and always trying to come in in their own way. Not sure this is the best way to make a dive into the space, but maybe I’m overreacting to an asset-creation platform.

By the way, if you’ve been following the court hearing for SBF and the FTX guys, you should be astonished…’ gobsmack’ is the word of the day. I forgot. Couple of impressive incomes in those lists from Caroline. Not sure which is more lucrative, Sports, Music, or running a crypto-trading platform. If every exchange operator earns that much, then the latter wins, hand-off. If you haven’t been paying attention, this is the second one on my list.

The third one? This snack of course! I wouldn’t be here after 70 days to write another snack-time talk story if I didn’t find a befitting snack. No need to dwell on that, I came across the whitepaper for BitVM. The Bitcoin blockchain could run smart contracts in the near future. Safe to say that even Bitcoin now copies Ethereum. No jokes on the team working on this impressive development, just saying that Bitcoin has spent a majority of its lifetime being compared to Gold. If it finally turns into another virtual machine, then it will spend another decade being compared to Solana, Taraxa, and Polygon, I left out Fantom…another cool EVM network! But technology is about finding out, sorry, that’s science. Never mind, I own up to that statement.

Deploying memecoins on the Bitcoin network would have been historic, but BRC-20 tokens already did that and suddenly no one talks about them. Not sure why they faded so quickly. Big guess, The Bitcoin blockchain was built to support P2P BITCOIN transfers and not inscriptions. Ethereum and all of its offspring were built for this. And if you think Bitcoin running smart contracts will kill off other smart contract blockchains, just remember the same was said about BRC-20. Too early to call it, but this is where we are headed.

I would have loved to put a word out for everyone getting a 10% refund on their failed NFT investments but I never got a refund from the handful of rug-pulls myself and other memecoin investors had to go through. So, if Logan Paul finally sends your 10% Cryptozoo investment back to you, then you should consider buying a good snack and some Sprite. Project literally sound like a straight scam, but that’s how most rugpulls sound. Cool name projects pull the rug equally, don’t judge a book by its cover, this doesn’t apply to your Algebra textbooks though.

Time to drop the keyboard, just took the last bite and it is not certain when the next snack talk stuff will drop. Judging from the current trend, Q1 2024 is very likely. Maybe Bitcoin will be back above $30K then. If the ETFs finally land, then sure, we can be positive. Yeah, that’s it …guys.

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13/10/2023
Snack Talk: The jump-off

Alright, I just got a sack full of snacks, it’s been a long day! The neighbour, just a block away is blasting some hip-hop music. Since this is crypto-related content, you’d guess the artist would be Soulja Boy or Lil Yachty; but coincidences aren’t as usual as we’ve made them be. Talking about those guys, we might see them return to the crypto space when the next memecoin season dawns on us. Soulja Boy led the marketing for the LimeWire token. Unfortunately, it couldn’t do a quick and temporary 10X before it crashed into obscurity. That $30 million ICO fundraiser will be enough to pay off Soulja and Bahd Barbie; since the latter is aboard the ‘content creation’ project as well. Well, time to move on, condolences to the ICO participants turned into bagholders.

Back to my neighbour’s music, it’s a 2009 Kanye, Jay Z, and Rihanna classic. A rich song…literally. But the inspiration for this article didn’t even come from there. Actually, there was no inspiration for this article. I just needed to slow down the half-life of this snack by talking crypto and web3 along the line. This is the first ever ‘snack talk’ (from me), new editions will be made anytime I stumble on a good snack. Good snacks aren’t so common in this area of the world, so, be rest assured that the next edition of this terrible series (might) take time.

Going ahead, UNIBOT is doing some face-melting on the charts, but that isn’t the main thing you should be worried about. There is a new Bitcoin in town, not the Satoshi one, the Obama one. Funny enough, Mr.44 wasn’t even a fan of crypto. He might have taken a few Bitcoin from that silk road seize, but that’s not enough to put his name in a top 300 crypto asset. Mr.45 was a more crypto person than his predecessor. He even runs a whole NFT project. Really significant, for the fact that he did bash Bitcoin. If Americans vote for another Democrat that isn’t Joe, then we might see a real Bitcoin fanboy in the Whitehouse. Heard he got two bitcoins each for his 7 kids. I’d give the best gifts to my kids too. W dad!

Hollywood is jumping between worlds. From the black-and-white world with Oppenheimer and then to the Pink world with Barbie. I’ll most likely pick a Chris Nolan movie, but this isn’t a recommendation. And this isn’t even any of our business, well, until Oppenheimer Memecoins start trooping in. Before then, we can only enjoy the current calm.

But it’s never calm in the crypto space. Just in case you live under a rock, FTX exchange is trying to make a comeback. If you dipped some cash into the troubled coin, you may have seen some pumps a few weeks ago. I’m sure you weren’t expecting that as the main gist from a guy with a sack of snacks. The news is, Sam is getting sued. I whispered those words, don’t shout! We can all pretend to be surprised when we hear that from a friend at work. Talking about friends at work, you should be planning a memecoin launch with your friends, you could just create the next Pepe.

Not sure if you are expecting another full paragraph, it’s just a snack-time talk. I just took the last bite. Last bites are like breakups. They leave a taste until your next meal. If you bought UNIBOT about a month ago, your next meal should be a steak, else, just have a burger and pray for a green candle. Been a good time, this is the Jump-off; title of the next edition will be inspired by the name of the snack. You don’t want to miss it, so just follow, even if it’s just for the sake of following. Yeah, that’s it for now…this Soda tastes bad…

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28/07/2023
What is cyclic arbitrage?

Arbitraging is as easy as buying from one end and selling for an assured profit on the other end because the sale point is positively ahead of the purchase point in terms of price development, or lagging as the case may be. Arbitraging is partially the reason why asset prices stay relatively the same across different markets and pairs. Manual arbitragers, arbitrage sniffing bots, and algorithms are lurking on centralized and decentralized exchanges to quickly take advantage of temporal shifts in asset values. Cyclic arbitrage is a common practice in arbitrage trading.

A number of decentralized and centralized arbitrage projects and even projects not directly related to arbitrage trading utilizes the mechanics of cyclic arbitrage to balance their trading system. Cyclic arbitrage could be a really handy theory for cryptocurrency and mainstream trading platforms, even ones that hope to develop an extra income opportunity for themselves.
Here’s the basic theory of cyclic arbitrage: The arbitrage trading algorithm sniffs three different exchanges or more with a special focus on a single asset. It collates the current trading price on these exchanges and compares them with respect to their pairs. Using information garnered this way, it simultaneously trades the asset in such a way that it yields a net profit, trades might end up with a different asset, but this asset must have an instantly redeemable value that is above the starting capital.

Protocols that use (or attempt to use) this theory, develop a trading bot that automates it trading in accordance with this theory. Depending on the design of the algorithm, this process is repeated as many times as possible, wither in the same direction as long as the trade remains profitable in a different and more yielding direction.

Here’s a scenario. Say the arbitrage bot detects a difference between the trading price of MATIC on Binance and Huobi with the price on Binance lower than that on Huobi. The bot detects a third exchange (say Kucoin) on which a MATIC pair (like MATIC/FTM) trades below the market value. This bot makes a MATIC purchase on Binance and exchanges the Matic purchased on Binance for FTM on Kucoin. To complete the cycle, it sells this FTM on Huobi for MATIC and realizes more profits in MATIC.

Cyclic arbitrage accumulates the profits from arbitrage trading as opposed to regular one-directional arbitrage trading. Further applications of the cyclic arbitrage trading algorithm will reveal more details about how it works.

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30/06/2023
Automated Market Maker Vs CEXes: The trading revolution!

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Ridiculous fees apart, using decentralized exchange services has been really fun! Using DeFi services on platforms where fees and efficiency issues are fixed brings a true feel of decentralization.

The comfort, the security, the speed…oh well, just many things! DeFi protocols are mavericks and make centralized exchanges look so ancient despite being just about a decade old, lol.

My frequency of using centralized exchanges has decreased over five times the initial. If we can get rid of fake volumes, centralized exchanges are obviously bowing down to decentralized exchanges; in terms of volume, user base, and application.

The fact is, centralized exchanges aren’t even real competition to contemporary decentralized exchanges the difference is clear. Mainstream trading system will probably get usurped by DeFi protocols.

In addition to decentralization, security, and efficiency; Automated Market Maker, the protocol powering trading on decentralized exchanges is the main technology poised to put centralized exchanges to rest. AMMs are built to ensure organic liquidity and create real-time trading effects. Unlike centralized exchanges, AMMs are all shades of good. In the real sense, it’s AMMs Vs CEXes!

Despite years of efforts and modifications, fake volumes have continued to bite down on the reputation of centralized exchanges. Aided by exchange officials or solitarily, cryptocurrency projects could easily fake buy and sell orders to lure investors who are attracted by high volumes as proof of demand and liquidity.

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This fake liquidity and high demand would quickly dry up as soon as the manipulation ends. Well, if the manipulation was able to lure enough investors and traders, then the decline will be gradual. If the project is unable to drive real demand, the liquidity dries up once again. Investors are only left to mourn their losses in cases like this…the ripple effect continues.

Apart from projects luring investors with these volumes, exchanges as well adopt this strategy to boost their numbers and attract users. Exchanges or cryptocurrency projects…I can’t tell who did this first.

Trading and liquidity manipulations on centralized exchanges also tarnish the organic effects of buys and sell. High volumes of huge buys, yet the very little effect on prices. Unfortunately, these positive effects are wiped away by relatively lesser sell orders. Everything looks programmed! For unstable projects, this phenomenon is even clearer.

The inability to estimate the depth of the liquidity pool and the effects of buys and sells on the price makes trading harder and less fun. I’m no trading expert, but being unable to access the originality of the trading activities for a particular token makes trading unthinkably tough.

Centralized exchanges and their technology have served for the time they dominated the space. No doubt, they flourished due to the incredibly handy services they offered. In essence, these services were the best available.

In contrast, Automated Market Markers, despite not being without their own shortcomings are programmed to be highly organic and responsive. Like a real-time trading system, every bit of supply and demand creates a relative effect. Traders and investors are handed efficient tools for making decisions and projects are represented for what they truly are…at least for that point in time.

AMM schema

Thanks to liquidity pools, AMMs provide a basket of exchangeable assets to enable unrestricted trading for the period in which the liquidity providers wish to leave their assets on the pool. The transparency of the liquidity pool allows traders to make their decisions.

AMM protocol ensures that every buys and sells effect reflect relatively on the asset price. AMMs are not completely resistant to manipulations, this is evident in the rampant rug pulls. But on the brighter side, these actions are transparent; an important feature of blockchain technology.

Smart contract technology also creates an avenue for ‘liquidity locking’. This solves rug pulls to an extent. Liquidity locking ensures that provided liquidity cannot be removed for the period of time specified in the locking process.

It’s not just centralized exchanges; trading systems around the world will surely adopt AMM strategies sometime in the near future. In my opinion, it is the future of trading and exchange.

20/02/2023
Liquidity pool: What is it?

So, you just used a Decentralized exchange and learnt about a liquidity pool for the first time , probably not your first time but you just began to wonder how exactly this works. Unlike the rampant centralized exchanges, DeFi exchange platforms do not have buy walls and sell walls, yet the exchange of assets is unrestricted. Even a cryptocurrency veteran would wonder how this works exactly.

Decentralized exchanges are powered by Automated Market Maker (AMM) protocols which leverage liquidity pools to ensure a seamless exchange of assets while retaining blockchain-level security. AMMs? We will learn about these in my next article. Understanding liquidity pools — the underlying technology which powers automated market markers is our current objective.

So, what is a liquidity pool?

Imagine a basket containing two kinds of fruits in a barter trading system; taking one of these fruits requires you to replace them with an equal value of the other fruit. Now, this is basically how DeFi exchanges work. The basket here is the liquidity pool.

Liquidity pools are collections of tokens locked in a smart contract which allows the borderless exchange of tokens in the pool. Contributors who provide these tokens and lock them in the pool are known as Liquidity providers.

To provide liquidity, a liquidity provider locks up equal values of the two tokens in the pool. The liquidity pool is hence a collection of tokens locked up by the liquidity providers, this pool is available for traders who wish to exchange any of these assets.

Liquidity providers receive liquidity pool tokens (LP tokens). LP tokens are cryptographic representations of the percentage of the total liquidity pool owned by the individual liquidity provider. Trading fees are distributed amongst liquidity providers according to the percentage of the pool they own.

To further incentivize liquidity provision, certain projects launch liquidity farming programs on their platform to reward liquidity providers according to the amount of liquidity they supply. This is popularly known as liquidity farming. To earn tokens in a liquidity farming program, liquidity providers stake their Liquidity pool tokens on the platform and earn according to the APR and amount of Lp tokens they stake.

However, liquidity provision comes with its own little disadvantage, this is known as Impermanent loss. Impermanent loss is a ‘temporal’ and ‘illusional’ loss incurred by liquidity providers due to variations in demand and values of the tokens they supplied to the liquidity pools.

This is due to a protocol programmed to retain the total value of tokens supplied to the pool. If one of the assets supplied to the pool continues to rise in demand and value against the other, liquidity providers receive the other asset as the supply is increased by traders depositing more of it to the pool

Assuming you supplied 100USD worth of Ethereum and 100USDT, the total value of your Liquidity is 200USD. As the value of Ethereum increases, the amount of Ethereum you supplied continues to decrease while you receive more USDT, this is essentially designed to retain the 200USD you added to the liquidity pool.

The ‘loss’ comes from the fact that the gains which would have supposedly come from the increase in the value of Ethereum will be lost. It’s illusional because there is in fact no loss; your 200USD is sustained, the only difference is that you have more USDT now. It is temporal because if the liquidity provider can wait until the price returns to what it was when this liquidity was provided, they will receive the same amount of tokens they supplied when they withdraw the liquidity.

Liquidity pool is a clever technology, not only does it solve fake liquidity issues, they simplify asset exchange. Liquidity providers also get to earn passive rewards from liquidity provider fees.

05/02/2023
Chasing ‘hot shots’ is less likely to make you rich!

Off to the market! And what are we buying today? The most popular cryptocurrencies? Floki Inu; the meme coin based on Elon Musk’s dog has gained some steam. Funny how that sounds but the rocket man has cemented his reputation as the king of memes and everything that comes with it. Crypto investing is quite an interesting venture.

Doge, Shiba, Floki…each of these projects hit the ground running with the mouth-watering gains they post. They do this despite not having any tangible use case…well, memes and ‘charity’ are good use cases nowadays. Anyways, ‘numbers go up!’.

So, you are going to ditch your stable coins or some of your previous investments for the ‘next 100x’? It’s human nature to chase trends and the fear of missing out is a huge drive. Investors rush to these hot shots with hopes of reaping from the next possible gains.

This works, sometimes. It’s an uncertain market anyways and anything is possible, but being a successful investor hardly comes from jumping on trends. 50% gains, the rush kicks in. Speculators take the space and the project in question gets mentioned everywhere. The trend goes on, enthusiasts buy in with only a little idea of what the project is really about.

TA analyses, hypes from influencers, gains on trading pairs…these things are enough to sweep anyone off their feet. But regardless of how hot the hype blows, clever investors will certainly do their own research before buying in.

What’s your ‘hot shot’ story? Various tales will surround the rush. Successful or not, conditions differ. But…

Cryptocurrency trends are birthed by an idea or concept gaining relevance over time. Memes, DeFi, NFT…these ideas existed way before they caught the attention of the greater number of people in the space.

The real gainers in any case of these concepts breaking out are the pioneers who believed in these ideas and supported them with their time and their capital. Being amongst the pioneer investors in any concept could fetch you over a 1000x gain as the case may be. This, however, comes with its own challenges.

Chasing trends definitely keeps an investor ‘restless’. Traders are meant to do this normally, but investors who buy tokens with a plan to hold on to them until the gains start coming are meant to exercise patience. Patience is a joke word for an investor chasing trends.

2–5X gains (or some terrible to manageable losses) and the hype dies; then unto the next one. A patient and more enduring investor who makes enough research probably already made some crazy gains from the same project and is still holding on knowing the hype could return with even heavier waves.

Chasing trending projects puts an investor in the way of higher risks and lesser gains as the hype and trends are naturally meant to cool off at a point. Buy high, sell low…a common story amongst trend chasers.

Cryptocurrency investment gives room for countless opportunities, but reaping from them would require clever decisions and a lot of patience too. The more time you spend chasing trends, the more risks you’re exposed to and the more losses you may incur.

Depending on how far the project goes, a lucky investor might make tangible gains from chasing trends, but that only means that a patient investor who invested before the hyped kicked in already made way more. Well, it’s better to make little gains than to miss out entirely, but most times, things don’t work exactly as presumed.

05/02/2023
Consider these while doing your own research.

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Most cryptocurrency suggestions end with the common phrase, ‘Do your own research’(DYOR). To an extent, I see it as the best way to describe the unpredictable nature of everything about the crypto space, every ‘advice’ are mere suggestion and even the ‘professionals’ get it wrong many times. Getting it right most times is even an extremely hard feat. Getting it right every time is utterly impossible, a 70% accurate cryptocurrency advisor is just an illusion, 50% accuracy is almost impossible too, as a matter of fact.

Predictions in cryptocurrency are mere speculations, hence the phrase ‘Do your own research’ charges you to be a master of your own decision and the repercussions of its failure. While these rampant suggestions also form a part of your research resources, their influence on your final decisions is actually your liability as the influencers do not answer for the failure of your decisions.

Hence, you’re literally ‘on your own’. Looking for that cryptocurrency gem to invest in? it actually sounds easier than it really is, despite the fact that it already sounds tough. Just as experienced investors will say, ‘make your decision and stand by it’. Predictions of any kind are 10% calculation and 90% luck. Getting lucky is the only way to get it right, getting lucky is not assured, unfortunately.

Scoring high chances of getting your speculations right and getting lucky in your cryptocurrency investments involve some vital steps of calm inquiries, research, and calculations. The cryptocurrency space is made up of over ten thousand ‘exciting’ projects and new projects coming up every day with equally exciting concepts and clever moves, one will be moved to invest in almost all of them.

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Regardless of how much you diversify your cryptocurrency portfolio, you still leave out the majority of the cryptocurrency projects, and each one you leave behind reduces your probability of getting it right with your investment as every one of them stands some chance of making good returns on investment. On the other hand, doing the impossible and buying into as many projects as possible also places you at a higher risk of running into losses, diversification may seem to be the best approach, but in the real sense, it could backfire badly. Streamlining your investments still harbors the bigger risk but is poised to give the best return if you get it right with your streamlined portfolio.

Decisions backed by research are the best approach, making the right inquiries in the course of your research hence becomes equally important. In making your research, some important aspects of the project should be surveyed carefully. Short-term holders and traders certainly have a ‘smaller’ decision to make. Traders could derive their next moves by looking at the seven (7) days price chart of the coin/token and predict the next move by other buyers using human behavior theories. This is very hard, however, investors intending to hold on to their investments for a long time certainly have a harder decision to make as there comes to the need to apply the traders’ and short-term holders’ strategies and as well many other calculations and speculations to arrive at a safer decision.

Just like stocks, gold, and other similar commodities cryptocurrency price movements depends on market trends and the utility of the token. While short-term holders and traders can simply ride with their predicted market trends and take their profits in a short while or simply get out of the trade to minimize their loss, long-term holders expect to hold their tokens/coins for a much longer time, ride with the fluctuations and stay through the adverse times hoping to reap from their persistence and patience at the long run. Hence, careful prediction of the long future is essential.

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You should consider the idea behind a cryptocurrency project. Many cryptocurrencies are mere bogus terms with infeasible proposals and concepts. Jumping into such projects is likely to backfire in the long run. Utility is the first thing to look out for. How possible is the concept proposed by the developers? What are the possibilities for developing their proposed solutions into workable prototypes? and what are the possibilities of these prototypes being really applicable to the problem that it hopes to solve?

A project which offers real solutions to problems stands more chances to make massive returns on investments if it finally proves to be a solution. Unfortunately, many cryptocurrency projects make their proposals as flashy as possible and present mouth-watering roadmaps which all end up being mere proposals that may never be realized. Sieving out such projects hence requires an in-depth look at current efforts made by the developers and how workable their current prototypes are. This will give a better insight into the future and enable the investor predicts the future with more information.

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Regardless of how feasible a proposal is, it requires capable hands to materialize it, a capable team is also a vital factor to consider before any cryptocurrency investment. How experienced and qualified the team members are increasing the chances of the project’s success. A good team is as important as a feasible goal. A good team knows how best to steer a project toward the right path. Before investing in any cryptocurrency project with a good vision, endeavor to survey the team’s reputation, experience, qualifications, past projects, and leadership scheme. A well-guided project with a good proposal is bound to succeed if other factors should remain favorable, this is also a good point to consider before buying in.

Token generation and distribution schemes could also go a long way to deciding the success of a cryptocurrency project. An outrageous supply scheme scares away investors. Token distribution scheme is also a good factor to consider, who are the holders of this coin/token? And how many tokens are they holding? How many tokens are already in circulation and what is the total supply? Unexplained outrageous supply and distribution of tokens/coins are major red flags.

In practice, a project with a good team and potential utility may override poor token management, however, in a situation where the first two factors are not very satisfactory, risking it more with a poor token supply and distribution scheme is a whole lot of risk.

A look into the community and how the project is being managed is also important. A transparent and decentralized project displays the core virtues of a cryptocurrency project. A good community contributes tangibly to the success of a good project, building a good community is also dependent on how good the management is. A well-managed transparent and truly decentralized project appeals to the cryptocurrency community more than otherwise.

As complicated as cryptocurrency investments could be, good research only improves an investor’s chances of at least not running into grave losses with their choices. The chances of getting it right are also improved, however, it doesn’t assure a successful investment. Sometimes, trusting your intuition might be the best decision to take, good research also feeds your intuition.

31/01/2023
How to DCA (Dollar Cost Averaging) like a pro.

You’ve been told to keep throwing in more money on your crashing asset to reduce the average purchase price. Saylor bought over 20k bitcoins at an average price of about $34,000. Considering the difference between the highest and lowest prices he bought them; that’s a long journey and a whole lot of Dollar Cost Averaging (DCA).

Dollar Cost Averaging?

What does that even mean? Well, if you have the habit of buying more of a particular asset even as its price keeps falling down the cliff, then you’re Dollae Cost Averaging, without even knowing the general term for what you are doing. A majority of cryptocurrency investors do this a lot, myself too. A pure show of belief and dedication…or just greed.

Even your favorite Twitter influencer told you at least once to “fill your bags at these prices”. Even as the price goes lower, you still fill ‘those bags’. Dollar Cost Averaging and hoping for better days. Sometimes they come, other times…well, bagholding is also part of the game. If you are an active DeFi participant or a meme token connoisseur, you probably have tons of tokens you might never sell again. You kept buying down the molehill and now there is no way back up the dark pits. It happens.

The advice to keep buying the dip and HODLing is a popular one, but there’s something you’re not being told…yet.

In a space filled with thousands of projects claiming superiority, it is easy to lure investors with well-crafted promotional pieces. Everything runs down to why you should invest and continue doing that even when it all looks dark, or at least hold on to your investments and not exit the market even when you’re in gains. Influencers use bold words and appear more experienced than the larger majority; sometimes they really are. Other times, they are simply putting out their personal opinions and perceptions. This space still remains the most unpredictable investment option.

The main factors guiding your choices should be your personal convictions through detailed research and experience. External suggestions are only resources to help your research process and shouldn’t form the main basis for your decision.

That being said, Dollar Cost Averaging is a brilliant move…when done right. Getting it right isn’t a mathematical issue too. But consider these…

Before buying more of a crashing asset, questioning the reasons for the loss in value might be important to your decision. Getting greedy when others are fearful is unarguably a good move, but sometimes this could also backfire; in reality, this move is always risky. Taking time to make certain considerations before ‘getting greedy’ increases your chances of averting some disasters. Price may dip badly in cases of irregular acts by the team behind the project you are invested in, this always drives the price nuts and could possibly dip to its last point.

If a crash isn’t due to some extreme reason which affects only the project then there are chances of making a recovery. Pulling a recovery depends on two factors; the project making the right moves and the market reacting positively to its move. Recovery cannot happen without these two factors being met satisfactorily.

Taking a good at the team behind the project and their reaction to the dip is surely an important move to make. How the team is reacting to the drop in the value of their project and how they hope to get out of the ditch. In a situation where the team is already ‘exit scammed’ then this might not be possible. ”Almost impossible” is a better way to put it. Well, ‘impossibility’ is an illusion in space. But if a project team is gone for real, recovery is far-fetched.

Alright, there are chances for recovery; but to what extent? Certainly, if a project is determined to keep working harder after a huge price drop, it is poised to pull back some losses, sometimes the pullback is not relative to the drop. For a project which experienced a 70% price drop, making a 70% gain from their current position still keeps them below their former top level. This indicates the extent to which a project needs to go before a complete recovery. Well, sometimes it is easier to go up from the bottom.

While DCA is plausible and you’ve been advised to invest what you can lose; considering some or all of these also goes a long way to reducing your potential losses…at least.

15/01/2023
Cryptocurrency mass adoption: One big lie?

Three big cryptocurrency exchanges pumped literal millions into the super bowl to have their commercials aired during the prestigious event’s commercial breaks. Not so big when you consider the fact that two of these exchanges are buying up the naming rights for prestigious American sports centers. Tezos have partnered with the famous English premier league club — Manchester united; at least we are finally seeing that big ICO money come to life.

With arguably the greatest soccer player ever wearing those training kits with ‘Tezos’ written boldly on them and Lebron James getting buckets at the crypto.com arena, one thing comes to mind; “crypto is taking over the world”. From a small group of nerds working on ‘the future of money’ to millions of people holding cryptocurrencies…for mainly an odd reason, cryptocurrency and blockchain have walked a long path in just twelve (12) years.

Twelve years of struggle for relevance; like a stubborn attention seeker, cryptocurrency has snuck its head in every nuke and cranny. From social media to billboards and television commercials; cryptocurrency marketing strategies are almost as brilliant as the technology itself.

But there is one big lie along the line…

Cryptocurrencies’ are presented as a portable and more convenient means of exchanging value. The biggest perks over traditional alternatives are decentralization and privacy. Speed and transaction cost used to be on the list; not sure if they can be boldly enumerated anymore. It costs over $4 to move Ethereum and about three times more to move smart contract tokens, bitcoin transactions would require similar fees too…

Despite these issues, cryptocurrency’s popularity has been on the climb and isn’t slowing down anytime soon. Bitcoin particularly has seen huge political breakthroughs and has become one of the hottest economic and political topics in the past five years. This relevance isn’t really due to some technological advantages it possesses but mainly due to its tokenomics and mode of operation.

Bitcoin’s distinction over fiat as a store of value is its limited supply. Governments are however reluctant to acknowledge it as a legal tender due to presumed support for illegal financial activities, supply algorithms…and carbon footprint. These reasons are valid, the back and forth on legalization and ban continues. You could anger the Chinese president by simply screaming ‘bitcoin!’.

Bitcoin fits best as a store of value and a payment solution, even though it is currently not very efficient in the latter. Other cryptocurrencies and blockchain projects attempt to solve numerous other problems. Artificial intelligence, oracle solutions, decentralized internet, comedy (yes, comedy!); a number of altcoin projects fit into these categories and more as they attempt to solve more real-world problems and possibly replace existing options. Each of them has earned themselves tons of believers and investors…but again for an odd reason.

When news? “Huge or not”? Investors couldn’t care less about the relevance of any of these projects. Major updates, and (huge) partnerships; regardless of the relevance of these to the actual development of the project, investors fly in with different emotions. Buy the rumor, sell the news; you’ve surely heard that too many times in this space.

If you’re truly here “for the technology”, then you are actually one out of a very scarce few. For a space filled with thousands of very volatile assets and clever marketing strategies, speculators are sure to flock in and tap from the fast-flowing streams.

Getting rich quick is actually the most appealing ability of cryptocurrency.

These adoptions are rarely for the technological advantage cryptocurrencies have over fiat. Even El Salvador has competent plans to redeem their crypto profits in fiat and channel these profits to national development. It’s safe to say that the central American nation didn’t adopt bitcoin because it is a better option to fiat but because in contrast, it is in constant growth in value. This is the same with other institutions adopting blockchain products.

Mainstream celebrities jumping into the NFT trend rarely understand how the technology works and what NFTs really are. Simple process; mint the arts, sell to speculators, and take the loot…in stable coins or actual dollars, lol. How the blockchain actually works and why it is a better option? You can save those long lessons for anyone who cares!

Cryptocurrency adoption comes down to a need for inclusion and the need to be a part of an enriching ecosystem. Very different from the reason presented in our thoughts.

The big lie is, cryptocurrencies are not adopted for technological advantages, and neither is blockchain technology. NFTs are shiny and popular brands are seeing them as a major avenue to improve their financial conditions. Celebrities dishing out NFTs and chasing out in stablecoins and dollars is the most crypto thing you’d ever see.

Companies too are finding ways to include a two trillion dollar opportunity into their purchasing option. The inclusion of crypto payment options into commercial platforms comes as a result of this. Firms looking to expand their purchasing power include the crypto payment as a good marketing strategy. It will be interesting to see the percentage of these merchants that keep a majority of the cryptocurrency they realize in their reserves.

Cryptocurrency is reaching out to people, and speculators. Investors are more dedicated participants. A majority of people putting their money on cryptocurrencies are speculators who envision short-term gains and are keen to leverage the enrichment possibilities of the most volatile assets ever.

Shill me the next altcoin to go 10X! worry less about what they are actually building. It is the normal sequence. Institutional and individual adopters are mainly speculators who consider the technological superiority of cryptocurrency and blockchain. The big lie? It continues.

14/01/2023