Ethereum, considered the second cryptocurrency ever, after Bitcoin, has been revolutionizing the world of decentralized technologies by introducing a new way of handling digital currencies and applications. In this article, we will delve into how it came about, its role and applications, etc. Hopefully, by the end of this article, you will be able to explain what Ethereum is to someone else. What is Ethereum? In short, Ethereum is an open-source decentralized platform offering features like smart contracts, dApps, and a wide array of services relied upon by millions of individuals. Ethereum makes up the essence of Web3, where users […]
Before you buy your first Bitcoin or send crypto to a friend, there is one tool you absolutely need to understand: the crypto wallet. Most people assume it works like a regular wallet, holding coins inside it, ready to spend. That assumption can lead to confusion. A crypto wallet works very differently, and understanding how it works is the most important security decision you will make in your entire crypto journey. By the end of this guide, you will know exactly what a crypto wallet does, how public and private keys work, which wallet type suits you best, and how […]
DeFi can let you lend your crypto for interest, earning passive income even while you sleep. However, there’s one aspect you must grasp before you deposit your tokens into a liquidity pool, one that silently siphons away your profits and catches even expert investors. Throughout decentralized finance, impermanent loss, which can occur in liquidity pools, is possibly one of the most misunderstood risks. By the time you have finished reading this guide, you will know what impermanent loss is, why it happens, when it stops being impermanent, and how you can protect yourself from it. What is a liquidity pool, […]
Who wouldn’t want to have stocks like Apple or Tesla in their portfolio? These stocks are much coveted, but also hard to get. Not because they are pricey, but you’d have to play by the rules, open a brokerage account, wait for the market to open at 9:30 AM, and then go ahead and at least buy one full share. But what if you could buy just a tiny slice of it for just $10. Better still, what if you could buy it using crypto in your digital wallet, trade it any time of day or night, and even lend […]
You might have heard Ethereum called the home of decentralized apps. However, a newer blockchain has been quietly making a case that it can do everything Ethereum does, only faster, cheaper, and bigger at scale. This blockchain is Avalanche, and its native token is AVAX. By the end of this guide, you will know exactly what Avalanche is, how its unusual three-chain design works, and why institutions like JPMorgan and BlackRock have started building on it. What is Avalanche, and why does it exist? Avalanche is a layer one blockchain platform built for speed, scale, and flexibility. The company Ava […]
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Automated portfolio rebalancing uses software or smart contracts to automatically adjust asset distribution in an investment portfolio to maintain a fixed target asset distribution. The practice of automated rebalancing has gained popularity among retail and institutional investors in cryptocurrency markets because these markets experience instant price changes that affect asset distribution. A portfolio typically consists of multiple assets allocated according to a strategy. An investor may choose to invest 50% in Bitcoin, 30 % in Ether, and 20% in stablecoins.
The Beacon Chain established the first component which enabled Ethereum to change its consensus mechanism from proof of work to proof of stake. The system began its operations in December 2020 when it established itself as an independent blockchain that worked together with Ethereum’s primary network. The system introduced staking as its main function which enabled it to manage validator operations until the network completely switched to proof of stake validation. The Ethereum network used miners as its validation process
The term alpha refers to a financial measure which shows the extra profits that assets create when their performance exceeds standard market returns. Alpha measures how much a strategy or trader or investment practice increases value beyond standard market performance. The portfolio needs to achieve a 15 percent increase when the overall market increases by 10 percent because that 5 percent extra gain represents alpha. The traditional asset management concept means that performance assessment uses an index like the S&P
The financial world uses basis points as a measurement unit to show interest rate and yield and percentage changes. The basis point equals one basis point which represents one hundredth of a percentage point or 0.01 percent. The numerical value of 100 basis points equates to 1 percent. The term commonly uses the abbreviation “bps” to refer to it. Basis points provide a solution to avoid confusion during discussions about small percentage changes. The interest rate increase from 5 percent
