5 Beginner-Friendly Crypto Trading Tips 

Zug, Switzerland. - July 14th, 2022. Considering the current market conditions, investing in cryptocurrencies could be a wise move to make before the trend reversal. Yet, when doing crypto, you should be well aware of the fact that there is a thin line between your investments soaring up to thousands of dollars and going to waste. 

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7 Reasons Every Trader Should Learn To Read Candlestick Chart

Reading candlestick charts should be a component of your trading strategy if you engage in financial market trading. Candlesticks convey vital information about the market's price behavior that might influence the success of your trades on the trading floor.

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WHAT YOU NEED TO KNOW BEFORE YOU START TRADING

For newcomers who are about to venture into the trading of digital currencies, it's crucial to acquire knowledge on how to get started. This short article will answer almost all the questions you may want to ask ranging from where to buy or sell to how to make profits and others.

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Cardano: Everything You Need to Know before investing in it

Zug, Switzerland. June 30th, 2022. Cardano is one of the fastest-growing cryptocurrency projects in the world and has been that way since it was created in 2015. Founded by Charles Hoskinson, one of Ethereum’s co-founders, Cardano has grown to become a leader in blockchain technology for verifying transactions and building decentralized applications (dApps).

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Dogecoin Explained: Everything you need to know about the meme coin

Introduction Dogecoin used to be one big joke. It was created in 2013 as a reference to a meme that featured Shiba Inu, a Japanese dog breed. The months and years that followed cemented Dogecoin’s position as a meme coin, and although the coin slowly grew and gained traction, It didn’t seem like it was going to blow up. Until 2021.   Thanks to a cult-level following on Reddit and a flurry of Elon Musk and Snoop Dogg tweets, Dogecoin grew by over 14’000% between January and May. So if you had invested $1,000 on New Year’s day, your investment would have been worth about $140’000 in June. Due to the recent crypto crash, Dogecoin’s value has dropped a bit, but it’s still one of the largest cryptocurrencies in the world by market cap.  In this article, we will go through the history of Dogecoin, why it became popular, how to use Dogecoin and how to trade Dogecoin for free. Let’s dive in. History of Dogecoin What comes to mind when you think of bitcoin? Ground-breaking technology that changed how people use money forever, right? The design of cryptocurrencies using blockchain technology is ingenious and came from a well-thought-out idea. Unfortunately, we can’t say the same about Dogecoin. There was no extraordinary inspiration or well-thought-out idea. Software engineers Billy Markus and Jackson Palmer created the cryptocurrency on December 6, 2013, as a joke. The Shiba Inu dog picture was a popular meme in 2013, and the co-founders chose it to create satire in the digital currency space.  Both co-creators met on Reddit, a social networking platform, and had never met each other offline before the creation of Dogecoin. Palmer was a product manager at Adobe Inc. in Sydney, Australia, while Markus was a software developer at IBM in Oregon, USA. The original idea for Dogecoin came from Palmer, who wanted to create a satirical coin because of the hype surrounding cryptocurrencies at the time. He wasn’t sold on the crypto idea then, and he had many mocking comments regarding cryptocurrencies. However, for the Dogecoin idea, he had a lot of positive feedback online, so he bought the domain name “www.dogecoin.com” In Oregon, Markus was struggling to create ideas for a digital currency. When he found that Dogecoin was getting some publicity, he asked Palmer if he could join and develop the underlying software. Palmer agreed. According to Markus, the cryptocurrency took them two hours to create. Markus designed Dogecoin as a fork of Luckycoin, a fork of Litecoin, which is derived from Bitcoin. A fork in cryptocurrency is a change to the original blockchain that creates a new version of the blockchain. Most times, forks happen to address some challenges and add new functionality to the blockchain. In other words, Dogecoin is a revised version of Luckycoin. Dogecoin uses the Proof of Work model and the sCrypt technology derived from Litecoin for its hash function. After the release of Dogecoin, it gained some followers online and rose about 300% in value in the next two weeks.  Rise of Dogecoin Just before the rise of Dogecoin in mid-2021, a sub-forum on Reddit called r/WallStreetBets had come together to buy a large amount of GameStop stocks to increase the value of those stocks and annoy Wall Street traders who had bet on the stock price dropping.  So when a WallStreetBets trader tweeted about Dogecoin in mid-January, many other Redditors were open to the new challenge: buy as many Dogecoins as required to push the price up to $1. This action caused Dogecoin to rise by 142% in two hours, from $0.007 to $0.017. In addition to the crazy WallStreetBets challenge to raise the value of Dogecoin, Tesla owner and billionaire Elon Musk tweeted a lot about Dogecoin and its potential to surpass the current global financial system.    Rapper Snoop Dogg also tweeted about Dogecoin, calling it “Snoop Doge,” and pinned the tweet.  The insane rise of the coin continued until May, when it reached an all-time high of $0.7376 on May 8, giving it a market cap of over $70 billion. How does Dogecoin work?  Dogecoin is a cryptocurrency that runs on its blockchain technology. Dogecoin is a fork of Luckycoin, so it derives most of its underlying technology from Litecoin. Like other blockchain networks, it is decentralized and uses cryptography to secure the transactions on the network. Consensus Mechanism Dogecoin uses the Proof-of-Work (PoW) consensus mechanism to verify its transactions. The PoW consensus mechanism is a system used by blockchains like Bitcoin. It involves blockchain members solving complex mathematical problems to compete for the right to verify transactions on the blockchain. In traditional finance, the centralized institution keeps ledgers and verifies transactions all by themselves. In decentralized finance, different individual members ramp up their computing power and use it to verify the transactions and mine new blocks. These miners get tokens as their reward for spending money on computer modifications and utility bills. In Dogecoin, the reward for mining a new block is 10’000 DOGE tokens. A new block is mined every minute, meaning 1’440 Dogecoin blocks per day.  Maximum Supply Unlike Bitcoin, Dogecoin doesn’t have a maximum supply. This means an infinite number of DOGE tokens can be mined. About 1’440 blocks are mined every day, and each block comes with a 10’000 DOGE block reward. This means the network creates 14’400’000 DOGE tokens every day. Dogecoin used to have a maximum supply capped at 100 billion DOGE tokens, until February 2014, when co-founder Palmer removed that cap. Currently, there are almost 135 billion DOGE tokens in circulation, and more are on their way.  Owners of Dogecoin It sounds weird considering the amount of Dogecoins in circulation, but only a handful of people own a large percentage of DOGE tokens. Out of the 133 billion DOGE tokens in circulation, 106 billion DOGE tokens are held by only 535 entities. That is 82% of the supply!     What makes Dogecoin Valuable Dogecoin is valuable simply because of demand and supply, just like any other asset — crypto, fiat, real estate, or precious stones. So when the demand for Dogecoin rose in 2021, the value of the token soared, and it became one of the best crypto assets that year. Another factor that helped Dogecoin’s value was its involvement in several charitable ventures. It started when users created a Dogecoin subreddit, and many legitimate funding requests for advocacy started to appear. This led to the creation of the Dogecoin Foundation in 2014. One of the first requests was that the community sponsor the Jamaican bobsled team to compete at the Sochi Winter Olympics in 2014. That initiative got over $30’000 in funding using DOGE. In March 2014, the community also donated about $50’000 to a project to bring clean water to a region in Kenya. Because of these charitable donations, members coined “Do Only Good Everyday” for the backronym DOGE. This pure image of the coin is endearing to many users and has made it more valuable.   Pros and Cons of Dogecoin Now, let’s look at some of the advantages and drawbacks of Dogecoin Pros It has a large community and a growing list of followers: There are about 4.85 million holders of Dogecoin worldwide, and more than 946 of these people hold $1 million or more Dogecoins. It also has a large online community of people actively promoting and pushing it. It is listed on the stock market: DOGE has been listed on numerous crypto and stock exchanges. This has proved, to a large extent, the credibility of the token and has increased its demand, driving up the value of the coin. It is easy to transact.  Cons It doesn’t have any particular technological proposition: Bitcoin made money decentralized. Ethereum made it possible to build decentralized applications on the blockchain. Solana made decentralized applications on the blockchain faster. Dogecoin is just a digital currency with a meme. Apart from demand and supply, Dogecoin has no unique technological selling proposition.  It doesn’t have good technical support: Although it is one of the biggest cryptocurrencies in the world, its technical support is not as robust as that of Bitcoin or Ethereum. Because of this, there has been no major technological update since 2015.      Uses of Dogecoin There are a few important uses of Dogecoin: Purchase: You can pay for goods and services online using DOGE tokens. Here is a list of companies that accept Dogecoin as payment on their websites and platforms. Rewards: Miners get 10’000 DOGE tokens as a reward for every mined block on the Dogecoin network.  Donations: As the community did on Reddit, groups can use Dogecoin for crowdfunding for different causes.  The Future of Dogecoin At the time of writing, Dogecoin is the 10th largest cryptocurrency by market cap. Its current price is $0.08178, and it has a market cap of about $10.8 billion. The price of Dogecoin has dropped in 2022 due to the crypto market crash, but it is still one of the most valuable cryptocurrencies in the world.  Another good sign is that many merchants and companies like Twitch, Tesla, etc., accept Dogecoin as a payment method, and others are likely to join them. If this trend continues, the purchasing power of Dogecoin will increase, and its value will follow. However, there are a few concerns.  The fact that only a few accounts hold large amounts of DOGE is terrifying. These big whales could sway the market in whatever direction they please, and the little HODLers will suffer the damage. Also, since there is no supply limit, the demand for Dogecoins has to surpass its current supply of 14’400’000 DOGE tokens per day for the coin to keep rising in value. For now, this seems likely to keep happening, thanks to the large community online and supportive tweets from celebrities, but no one knows how long these will last.   It is essential to realize that investing in Dogecoin or any other cryptocurrency is risky, so you should do your due diligence and seek expert financial advice before you put your money.    How you can trade Dogecoin with zero fees You can trade Dogecoin with zero fees on Lykke, the no-fee crypto exchange. Lykke is a Swiss-based crypto exchange that uses advanced algorithms to allow for zero transaction fees and low spreads for our customers.  All you have to do is register and get verified at Lykke Wallet. First, you need to pass through the quick and necessary KYC procedure to get verified. After that, you can deposit funds into your account by bank transfer using the fiat gateway at no banking fees. The exchange covers it for a limited time. Also, crypto deposits are free. After making deposits, you can exchange to Dogecoin without any trading fees.

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Dollar Cost Averaging: The Smart Strategy to Mitigate Risk During Crypto Bear Markets

The crypto market has had a tough year, with bitcoin declining by over 69% since it reached its all-time high of $69,000 in November 2021.  Many investors are considering investing all their money to buy the dip — purchase crypto assets when they drop in price — and sell their assets when the market recovers. While this is a good strategy, it can be very risky. It is difficult to tell when a crypto asset has bottomed out or if it will still fall even more. So how do you invest in the market while protecting your investment capital from losing even more value if the market goes further down? How do you keep some of your capital to buy even more crypto should the market crash even further? The answer is a simple but highly effective strategy called Dollar Cost Averaging. With dollar cost averaging, you can invest small amounts of your money on cryptocurrencies at a chosen frequency (say, every week or month) so that you don’t go all-in at once and risk losing most of your capital.   This article will go through what dollar cost averaging means, how you can do it, and some of its advantages over “buying the dip.” Let's dive in. What is Dollar Cost Averaging? Dollar Cost Averaging (or DCA) is a strategy used by crypto and stock market investors to spread their trading capital over a period. Investors use it to mitigate short-term and long-term volatility in the market. DCA is a strategy that works well if you are interested in an asset for the long term instead of trying to get quick short-term gains.  For example, instead of choosing to invest $1200 at a time on a crypto asset, using the DCA strategy, you can invest $100 every month over the next 12 months. This way, you can avoid the risks that come with short-term declines and enjoy the benefits of long-term increments. According to crypto analyst Carl B. Menger, investors who use the DCA strategy could “beat 99.99% of all investment managers and firms on planet Earth.” For this statement to be accurate, we have to believe that the cryptocurrency we’re investing in with this strategy will trend upwards in the long term. It is important to understand that while DCA deals with the risks of negative short-term volatility, it also cancels out the gains from positive short-term growths. So, for example, if a cryptocurrency gains rapidly in a week, investors who bought the dip would make more returns than investors who used the DCA strategy. Why Dollar Cost Averaging is a Better Strategy than Buying the Dip Dollar cost averaging is better than buying the dip for two reasons.  First, it takes away all the emotion, time, effort, and resources spent trying to time the market like many retail traders do when buying the dip. Over the years, there have been numerous short- and long-term analyses by professional analysts who claim to know where a coin will be at the end of a period. Unfortunately, most of them have failed terribly, not because the analysts are terrible, but because it is almost impossible to time the market perfectly. It is difficult to know if a coin will keep going down or if it has reached the end of its dip. Also, when a coin starts rising from a dip, it’s difficult to know if it’ll keep rising. So many crazy emotions come with trying to game the market, and many investors struggle with FOMO (Fear of Missing Out) or the fear of losing their investment. DCA is an emotionless, robotic style of investing that takes away the fears of short-term fluctuations in the price of a crypto asset you believe in for the long term. The second reason why DCA is a better strategy than buying the dip is that it helps you acquire crypto assets at low prices when the market goes down.  If an investor times the market wrongly when trying to buy the dip, they will lose some of their investment capital. This means they would lose the opportunity to buy more cryptos at a reduced price.  On the other hand, DCA traders would still be able to acquire more crypto assets when the prices go further down.    How to Use the Dollar Cost Averaging Strategy    The DCA strategy method you use depends on your cash flow and the amount of initial investment capital you have available to you. It also depends on the market trends and if you wish to adjust your style to match the market behaviour. For example, let’s say you have $4,800 you wish to invest in Ethereum over 12 months. You can spread your entry by investing $100 weekly for the next 12 months. Unfortunately, ETH goes into a bear market, and from your in-depth analysis, you don’t expect a prolonged bull market for another 2 years.  You can decide to change the frequency of your investment to $100 every other week to take advantage of the bear market. You can acquire cryptocurrencies at low prices when the market is down and enjoy better returns when the prolonged bull market comes. Another method of DCA investing could be investing a set percentage of your monthly income. For example, you can invest 5% of your earnings. This set percentage doesn’t change regardless of the change in your monthly income. You can use a DCA calculator to understand how your strategy could perform over time. Dollar Cost Averaging vs. Lump Sum Investing     Lump Sum Investing (LSI) is an investment method that involves putting a lot or all of your capital at once into buying crypto assets. Statistically, this method outperforms Dollar Cost Averaging in the long term, but it also has some flaws. First, LSI requires that you have all your capital at once, ready to invest. For some people, this might be feasible, but for most people, it’s not. DCA is a better strategy than LSI in this instance because it allows for disciplined investing from people who can’t afford to invest a massive amount at once.  For people with regular income who can only spare some money for investing every month, DCA allows them to start investing on time instead of waiting to save up for LSI.   Another issue LSI has is that it comes with many emotions that can negatively impact your decisions. For example, imagine investing all your capital just before a bear market. Then, the fear of losing all your capital kicks in, and you might decide to cut your losses and exit the market at a price lower than your entry point. On the other hand, with DCA, even if your investment horizon changes due to unforeseen circumstances, you can always adjust and take advantage of the market. The most optimal investment involves a mixture of DCA and LSI. If you have a considerable amount of capital, you can choose to invest a part of it (say half) at once. Then, you can invest the second part of the capital in bits using the Dollar Cost Averaging strategy.  This way, you enjoy the long-term benefits of lump sum investing and still have the capital to take advantage of when the market is down. This idea comes from Larry Swedroe, a stock market analyst and chief research officer for Buckingham Wealth Partners. According to him, this strategy helps tackle both the logical and emotional issues of both methods and helps the investor win from a psychological perspective.  Conclusion Dollar Cost Averaging has some flaws, but it beats every dip buying strategy every time. Furthermore, DCA can beat almost all crypto investing strategies when used with lump sum investing.  If you don’t have a lump sum to start investing, then DCA is your best bet. Remember, it is always better to enter the crypto market one step at a time instead of waiting to put all your money together and go all in at once. You can start investing in the crypto market with zero fees using the DCA strategy on the Lykke exchange. All you have to do is go through the KYC procedure to get verified, then deposit funds into your wallet using the fiat gateway at zero banking fees. Once that is settled, you can start trading on the exchange with zero fees! Click here to register now! About Lykke, the Zero-fee Crypto Exchange   Lykke is a crypto exchange headquatered in Switzerland. It offers free crypto trading for all users of the exchange. There are more than 20 selected cryptocurrencies on the platform, and you can trade them with no fees.

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5 Beginner-Friendly Crypto Trading Tips 

Zug, Switzerland. - July 14th, 2022. Considering the current market conditions, investing in cryptocurrencies could be a wise move to make before the trend reversal. Yet, when doing crypto, you should be well aware of the fact that there is a thin line between your investments soaring up to thousands of dollars and going to waste. 

Continue reading

7 Reasons Every Trader Should Learn To Read Candlestick Chart

Reading candlestick charts should be a component of your trading strategy if you engage in financial market trading. Candlesticks convey vital information about the market's price behavior that might influence the success of your trades on the trading floor.

Continue reading

WHAT YOU NEED TO KNOW BEFORE YOU START TRADING

For newcomers who are about to venture into the trading of digital currencies, it's crucial to acquire knowledge on how to get started. This short article will answer almost all the questions you may want to ask ranging from where to buy or sell to how to make profits and others.

Continue reading

Cardano: Everything You Need to Know before investing in it

Zug, Switzerland. June 30th, 2022. Cardano is one of the fastest-growing cryptocurrency projects in the world and has been that way since it was created in 2015. Founded by Charles Hoskinson, one of Ethereum’s co-founders, Cardano has grown to become a leader in blockchain technology for verifying transactions and building decentralized applications (dApps).

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Dogecoin Explained: Everything you need to know about the meme coin

Introduction Dogecoin used to be one big joke.

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