Ray Hung

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on the atlas · 31

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A short squeeze happens when the price of an asset sharply increases due to a lot of short sellers being forced out of their positions.
What Is a Short Squeeze? | Binance Academy
Shorting (or short selling) means selling an asset in the hopes of rebuying it later at a lower price.
What Is Shorting in the Financial Markets? | Binance Academy
A short squeeze can be described as a sudden price increase. When it occurs, many short sellers get “trapped” and quickly rush to the exit to try and cover their positions.
What Is a Short Squeeze? | Binance Academy
A bear market can be described as a period of declining prices in a financial market. Bear markets can be extremely risky and difficult to trade for inexperienced traders.
What Is a Bear Market? | Binance Academy
When a trader says they are bullish on a market, it means that they expect prices to rise. When they are bearish, they expect prices to decline.
What Is a Bull Market? | Binance Academy
A bull market (or bull run) is a state of a financial market where prices are rising.
What Is a Bull Market? | Binance Academy
A stop-loss is a type of market order that involves you setting an off-book instruction to sell at a specific price.
Understanding the Different Order Types | Binance Academy
the order isn’t added to the order book. The trading platform only converts it into a market order when the trigger price is hit.
Understanding the Different Order Types | Binance Academy
Market orders are orders that you would expect to execute immediately. Essentially, they say at the current price, do x
Understanding the Different Order Types | Binance Academy
market makers are the liquidity providers
Market Makers and Market Takers Explained | Binance Academy
While volatility might be decreasing on the macro level, Bitcoin has been priced in a free market from its inception. This means that the price is mostly self-regulated on the open market by users, traders, and speculators. Combine that with relatively low liquidity, and Bitcoin is likely to be more exposed to sudden spikes of volatility than other assets. So the model may not be able to account for this either.
Bitcoin and the Stock to Flow Model | Binance Academy
Stock to Flow relies on the assumption that scarcity, as measured by the model, should drive value. According to critics of Stock to Flow, this model fails if Bitcoin doesn’t have any other useful qualities other than supply scarcity
Bitcoin and the Stock to Flow Model | Binance Academy
The model essentially treats bitcoins comparably to scarce commodities, like gold or silver.
Bitcoin and the Stock to Flow Model | Binance Academy
scarcity alone doesn’t necessarily mean that a resource should be valuable. Gold, for example, isn’t all that rare – after all, there are 190,000 tons available! The Stock to Flow ratio suggests that it’s valuable because annual production compared to the existing stock is relatively small and constant.
Bitcoin and the Stock to Flow Model | Binance Academy
The higher the Stock to Flow ratio, the less new supply enters the market relative to the total supply. As such, an asset with a higher Stock to Flow ratio should, in theory, retain its value well over the long-term.
Bitcoin and the Stock to Flow Model | Binance Academy
It essentially shows how much supply enters the market each year for a given resource relative to the total supply.
Bitcoin and the Stock to Flow Model | Binance Academy
the Stock to Flow (SF or S2F) model is a way to measure the abundance of a particular resource. The Stock to Flow ratio is the amount of a resource held in reserves divided by the amount it is produced annually.
Bitcoin and the Stock to Flow Model | Binance Academy
as with cryptocurrencies, users don’t need to trust a third party
What Is a Decentralized Exchange (DEX)? | Binance Academy
The volume traded on CEXs still dwarfs that of DEXs
What Is a Decentralized Exchange (DEX)? | Binance Academy
CEXs tend to have greater liquidity,
What Is a Decentralized Exchange (DEX)? | Binance Academy
If you forget your password, you can simply reset it. If you lose your seed phrase, however, your funds are irretrievably lost in cyberspace.
What Is a Decentralized Exchange (DEX)? | Binance Academy
DEXs aren’t nearly as user-friendly as traditional exchanges
What Is a Decentralized Exchange (DEX)? | Binance Academy
they don’t hold customers’ funds
What Is a Decentralized Exchange (DEX)? | Binance Academy
KYC/AML (Know Your Customer and Anti-Money Laundering) compliance is the norm for many exchanges. For regulatory reasons, individuals must often submit identity documentation and proof of address.
What Is a Decentralized Exchange (DEX)? | Binance Academy
Since DEXs are permissionless, no one checks your identity. All you need is a cryptocurrency wallet.
What Is a Decentralized Exchange (DEX)? | Binance Academy
Some identify front running as a flaw in this model. Front running occurs in markets when an insider is aware of a pending transaction and uses that information to place a trade before the transaction is processed. The front runner, therefore, benefits from information not known to the public. Generally speaking, this is illegal.
What Is a Decentralized Exchange (DEX)? | Binance Academy
The common theme among them is that orders are executed on-chain (with smart contracts) and that users do not sacrifice custody of their funds at any point.
What Is a Decentralized Exchange (DEX)? | Binance Academy
You don’t own the private keys to the funds, which means that when you withdraw, you ask the exchange to sign a transaction on your behalf. When you’re trading, transactions don’t occur on-chain – instead, the exchange allocates balances to users in its own database.
What Is a Decentralized Exchange (DEX)? | Binance Academy
taking the total circulating global supply and dividing it by the amount produced per year
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
The model looks at each cryptocurrency as a fixed, scarce resource similar to precious metals or stones.
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
Market value, otherwise known as market cap, is simply the total supply of coins multiplied by the current market price. Realized value, on the other hand, discounts for coins lost in inaccessible wallets.
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
dividing a coin’s market capitalization by the daily transaction volume.
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
network value-to-transaction ratio has been called the "price-to-earnings ratio of the crypto world." In simple terms, it involves dividing the market capitalization (or network value) by the amount transacted (typically on a daily chart).
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
Market capitalization (or network value) is calculated by multiplying the circulating supply with the current price. Essentially, it represents the hypothetical cost to buy every single available unit of the crypto asset (assuming no slippage).
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
But an increase over time can also point to growing interest in mining, likely as a result of cheap overheads and higher profits. Conversely, a decrease in hash rate points to miners going offline ("miner capitulation") as it's no longer profitable for them to secure the network.
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
Hash rate is often used as a measure of network health in Proof of Work cryptocurrencies. The higher the hash rate, the more difficult it is to successfully mount a 51% attack.
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
the fees paid can tell us about the demand for block space.
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
transaction value tells us how much value has been transacted within a period
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
Transaction count is a good measure of activity taking place on a network.
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
On-chain metrics are those that can be observed by looking at data provided by the blockchain
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
The first step in that process is to identify strong metrics. By strong, we mean ones that can't easily be gamed.
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
Fundamental analysis (FA) is an approach used by investors to establish the "intrinsic value" of an asset or business.
A Guide to Cryptocurrency Fundamental Analysis | Binance Academy
As a simple rule, the more volatile the assets are in the pool, the more likely it is that you can be exposed to impermanent loss
Impermanent Loss Explained | Binance Academy
Impermanent loss happens no matter which direction the price changes. The only thing impermanent loss cares about is the price ratio relative to the time of deposit.
Impermanent Loss Explained | Binance Academy
AMMs don’t have order books. What determines the price of the assets in the pool is the ratio between them in the pool
Impermanent Loss Explained | Binance Academy
Impermanent loss happens when the price of your tokens changes compared to when you deposited them in the pool. The larger the change is, the bigger the loss.
Impermanent Loss Explained | Binance Academy
With that said, impermanent loss isn’t a great way to name this phenomenon. “Impermanence” assumes that if the assets revert to the prices where they were originally deposited, the losses are mitigated. However, if you withdraw your funds at a different price ratio than when you deposited them, the losses are very much permanent. In some cases, the trading fees might mitigate the losses, but it’s still important to consider the risks.
What Is an Automated Market Maker (AMM)? | Binance Academy
Due to the way AMMs work, the more liquidity there is in the pool, the less slippage large orders may incur. That, in turn, may attract more volume to the platform, and so on.
What Is an Automated Market Maker (AMM)? | Binance Academy
Liquidity providers (LPs) add funds to liquidity pools
What Is an Automated Market Maker (AMM)? | Binance Academy
The liquidity in the smart contract still has to be provided by users called liquidity providers (LPs)
What Is an Automated Market Maker (AMM)? | Binance Academy