Cryptocurrency portfolio management is a crucial aspect of successfully navigating the digital asset landscape. As cryptocurrencies have gained popularity and diversified in recent years, managing a well-balanced portfolio has become increasingly important. In this article, we'll explore the fundamentals of cryptocurrency portfolio management, including key strategies, risk mitigation, and best practices to help you make informed decisions and optimize your investment.Understanding Cryptocurrency Portfolios A cryptocurrency portfolio is a collection of various digital assets held by an individual or entity. These assets can include well-known cryptocurrencies like Bitcoin and Ethereum, as well as numerous altcoins and tokens. The primary objective of managing a cryptocurrency portfolio is to achieve financial goals, which can vary from capital appreciation to passive income generation.Key Strategies for Cryptocurrency Portfolio ManagementDiversification: Diversifying your portfolio is essential to manage risk effectively. Don't put all your resources into a single cryptocurrency; spread your investments across various assets to reduce potential losses.Asset Allocation: Determine what percentage of your portfolio you want to allocate to different types of cryptocurrencies. Common categories include core assets (Bitcoin and Ethereum), mid-cap coins, and smaller projects. Your allocation should align with your risk tolerance and investment goals.Risk Management: Set stop-loss orders or take-profit levels to manage risk. This helps protect your investments from severe price fluctuations.Research and Due Diligence: Thoroughly research the cryptocurrencies you're considering adding to your portfolio. Evaluate factors like technology, use case, team, and community support. Stay updated on news and developments in the crypto space.Long-Term vs. Short-Term: Define your investment horizon. Are you a long-term HODLer or a short-term trader? Your strategy should match your goals.Regular Rebalancing: Periodically assess your portfolio's performance and rebalance if necessary. This involves adjusting your asset allocation to maintain your desired risk and return profile.Risk Mitigation in Cryptocurrency Portfolio ManagementUse Secure Wallets: Store your cryptocurrencies in secure wallets. Hardware wallets, like Ledger and Trezor, offer an extra layer of protection against hacking and theft. Or tested, trusted and regulations adhering cryptocurrency exchange such as #BinanceStay Informed: Be aware of market trends, regulatory changes, and security threats. Stay informed through reputable news sources and forums.Avoid Overtrading: Frequent trading can lead to losses due to fees and market volatility. Stick to your strategy, and avoid impulsive decisions.Beware of Scams: The crypto space is rife with scams. Always verify the legitimacy of a project, exchange, or investment opportunity.Consider Insurance: Some institutions offer cryptocurrency insurance to protect against theft or hacking. Explore this option if you're holding a substantial amount.Best Practices for Cryptocurrency Portfolio ManagementStart Small: If you're new to cryptocurrency, begin with a small investment to get familiar with the market's dynamics.Keep Emotions in Check: Emotional decisions can lead to losses. Stick to your strategy, even during market turbulence.Tax Compliance: Understand tax regulations related to cryptocurrency in your jurisdiction. Keep records of your transactions and consult a tax professional if needed.Seek Professional Advice: Consider consulting a financial advisor with expertise in cryptocurrency to create a personalized portfolio strategy.Continuous Learning: Cryptocurrency is a rapidly evolving field. Stay open to learning and adapt your strategies as the market evolves. Cryptocurrency portfolio management is a dynamic and evolving process. Success in managing your digital assets requires careful planning, risk mitigation, and discipline. By following these strategies and best practices, you can increase your chances of achieving your investment goals and navigate the crypto market with confidence. Remember that cryptocurrency investments carry inherent risks, and it's essential to be well-informed and make decisions based on your financial situation and risk tolerance.

Binance Feed is a feature provided by the cryptocurrency exchange platform Binance to keep users informed about the latest news, updates, and insights related to the cryptocurrency market. It serves as a valuable resource for users to stay updated on market trends, project developments, regulatory changes, and other relevant information.

Binance Feed aggregates news and content from various sources, including reputable crypto news outlets, official announcements from projects, and insights from industry experts. The content is curated and presented in a user-friendly format, making it easily accessible to Binance users.

The primary purpose of Binance Feed is to provide users with real-time information and analysis that can help them make informed decisions in their cryptocurrency trading and investment activities. By having access to reliable and up-to-date news, users can stay ahead of market movements, identify potential investment opportunities, and manage their portfolios effectively.

The content available on Binance Feed covers a wide range of topics, including market analysis, price movements, new token listings, regulatory developments, technology updates, and more. Users can customize their feed preferences based on their specific interests, allowing them to focus on the news and updates most relevant to their trading strategies and investment preferences.

In addition to news and articles, Binance Feed also provides users with access to community discussions, social sentiment analysis, and other interactive features. This fosters a sense of community among Binance users, allowing them to engage in conversations, share insights, and collaborate with fellow traders and enthusiasts.

Overall, Binance Feed serves as a valuable tool for Binance users, providing them with a centralized and reliable source of information to navigate the dynamic and ever-changing cryptocurrency market. By staying informed through Binance Feed, users can enhance their understanding of the market, mitigate risks, and seize opportunities in the exciting world of cryptocurrencies.

In the fast-paced and constantly evolving world of cryptocurrency, security is of paramount importance. Binance, one of the leading cryptocurrency exchanges globally, has taken proactive measures to protect digital assets on its platform. This article delves into the case study of Binance's security measures and examines how they safeguard user funds.

Sophisticated Security Infrastructure:

Binance has implemented a multi-layered security infrastructure to fortify its platform against potential threats. The exchange employs advanced encryption protocols to secure user data and implements strict user authentication processes. Two-factor authentication (2FA), including options like Google Authenticator and hardware security keys, adds an extra layer of protection. Furthermore, Binance uses cold storage solutions for the majority of its cryptocurrency holdings, keeping them offline and inaccessible to hackers.

Robust Anti-Money Laundering (AML) and Know Your Customer (KYC) Policies:

To maintain compliance with regulatory standards and combat illicit activities, Binance has established stringent AML and KYC policies. These measures require users to provide verifiable identification and undergo a verification process to ensure the legitimacy of their accounts. By adhering to these policies, Binance not only protects its users but also contributes to the overall integrity and credibility of the cryptocurrency industry.

Continuous System Monitoring and Incident Response:

Binance maintains a dedicated team of cybersecurity experts who constantly monitor the platform for any signs of suspicious activity or vulnerabilities. In the event of a security breach or potential threat, Binance swiftly responds with a comprehensive incident response plan. This proactive approach enables the exchange to identify and neutralize threats promptly, minimizing potential risks and protecting user assets.

Educating Users about Security Best Practices:

Recognizing the importance of user awareness, Binance goes the extra mile to educate its users about security best practices. The exchange provides comprehensive resources, including tutorials and articles, on topics such as password hygiene, phishing awareness, and avoiding suspicious links. By empowering users with knowledge, Binance fosters a safer ecosystem for digital asset management.

Conclusion:

Binance serves as a compelling case study in the realm of cryptocurrency security. Through its sophisticated security infrastructure, robust AML and KYC policies, continuous monitoring, and user education initiatives, Binance has demonstrated its commitment to safeguarding digital assets. As the cryptocurrency industry continues to grow, exchanges must prioritize security measures to protect the funds and trust of their users.

The fact that hacks and thefts have not entirely upended the world of digital tokens is a testimonial to the appeal of the cryptocurrency sector and to the interest levels of many investors. Experts estimate that millions of dollars' worth of coins and tokens are stolen every day even now, years after the digital currency industry initially appeared and rose to prominence throughout the world.

All too often, headlines turn toward the latest theft or large-scale hack of a cryptocurrency exchange or a digital wallet somewhere around the world. Still, investors are willing to continue to invest money in digital currencies as a group, regardless of the uncertainty such security threats pose. While markets may witness downturns after these events, they tend to be short-lived. Now, a report by Zycrypto suggests that hacks and other attacks on the digital currency space may actually be beneficial overall.

Hacks and Bounties

Many bitcoin businesses and developers (whether directly engaged in the incident or not) go back to the drawing board after a high-profile attack to assess the security implications for themselves. This approach was demonstrated in May 2018 when the Chinese cybersecurity firm Qihoo 360 discovered a significant flaw in the EOS platform. As a result, Justin Sun, the creator of the Tron digital currency, used the occasion to review his organization's security procedures. Tron strengthened its "bug bounty" program, which rewards users who find security flaws in the platform, and issued a statement outlining its security aims and rules.

Attacks and Evolution

EOS and Tron are two digital currencies that have either been forced to respond to security threats or that have chosen to do so based on attacks on other platforms preemptively. Zycrypto argues that, because hacking will always continue, regardless of the technology in question, attacks of this type actually inspire evolutionary development in the digital currency space. In a "survival of the fittest"-type world, those coins, exchanges, and companies that are ill-equipped to deal with these threats will eventually either lose customers or be pushed out of the space entirely. This will leave only the most secure coins, tokens, and related companies. Only the best blockchains and apps will ultimately survive, and they will also be obligated to continue to develop as hacking grows more sophisticated.

President and CEO of BlockStar, Christian Ferri, suggests that today's hacks will become tomorrow's security solutions. "As in every technology, hacking will be painful for some in the short term; but it will be a major driver in strengthening the crypto ecosystem, making it more secure, which is key for mass adoption," he says.

CEO and co-founder of Sagewise, Amy Wan, agrees. She points out that there "will always be a community of crypto enthusiasts, despite all the hacks. But blockchain and crypto will not become more mainstream unless and until the space resolves these fundamental infrastructure issues and provides users with transactional confidence and certainty."

Tron is not the only digital currency offering rewards for the discovery of potential bugs or security flaws. Increasingly, more and more other entities in the cryptocurrency space are adopting a similar strategy. While this process is unlikely to stop all hacking attempts, it will nonetheless help to increase the security of those individual coins and companies, thereby helping to enhance the security of the entire digital currency space. Without security, it's unlikely that digital currencies will ever enjoy the stability necessary for mainstream adoption. In the meantime, as hacks continue to take place, emerging leaders in the crypto world will strive to offer the safest, most secure product possible.

It’s no secret that cryptocurrency is continuing to gain more traction in the broader investment landscape. To add to that, emerging crypto services like cryptocurrency credit cards and crypto paychecks are becoming more commonly used and widely available. As a result, new investors are often encountering unfamiliar terminology – such as “altcoin” – along their journey into the crypto marketplace.

If you’re new to the cryptocurrency market, understanding some of the key terms makes navigating this financial landscape much easier. To answer the question of what an altcoin is — and why it’s important to understand — here are the basics you need to know.

Defining Altcoins: What They Are (and Aren’t)

“Altcoin” is a term that refers to every cryptocurrency aside from Bitcoin. Essentially, it’s a category for Bitcoin alternatives, with “alternatives” serving as the basis for the name of the coin group — “alt.”

Functionally and technically, altcoins have a lot in common with Bitcoin. For instance, they may share certain code or rely on peer-to-peer systems for data processing and transaction verifications.

However, an altcoin can also offer capabilities beyond what Bitcoin provides, like advanced smart contracting features. Additionally, altcoins may use different consensus mechanisms, technical structures, validation processes and value-setting concepts.

While there’s some debate about the exact number of cryptocurrency coins on the market today, most sources agree that there are at least 10,000. Of those, effectively all but one qualify as altcoins.

Since Ethereum has the second-largest market share – coming in over $360 billion, putting it behind Bitcoin, which is firmly in the number-one spot – Ethereum is the most popular altcoin. While there are other prominent players, the vast majority of altcoins have tiny market caps by comparison.

Common Types of Altcoins

Altcoins come in a variety of forms. Usually, they’re divided based on functionality, technical framework or similar points, allowing them to stand apart from other offerings within the marketplace. Any given altcoin may fall into one or several categories. Below is an overview of some of the more common types of altcoins.

Mined Altcoins

Mined altcoins – like Bitcoin – are brought into the marketplace through mining. When a person mines, they use a capable computer to perform certain calculations. If they’re the first to solve a particular equation, the miner receives a bit of the associated crypto in return.

Mining is a crucial part of the ecosystem for proof-of-work coins. In that case, the calculations play a role in transaction verifications. Typically, providing crypto to miners allows the newly released coins to serve as a reward for participating in transaction-verification activities. That ensures the blockchain builds itself — while giving those who lend a hand an incentive to support those critical processes.

There are numerous mined altcoins on the market. Some of the most popular include Litecoin, Monero and ZCash, though they aren’t the only ones.

Pre-Mined Altcoins

Pre-mined altcoins aren’t released through mining processes. Instead, they’re typically distributed using a set procedure, such as issuing the coins during an initial coin offering (ICO). XRP is an example of a pre-mined altcoin.

Stablecoins

Stablecoins are altcoins that aim to address the volatility you typically see in the cryptocurrency market. The value of stablecoins is aligned with another asset, such as a fiat currency or precious metals. USDT and USD Coin are both examples of stablecoins.

Meme Coins

Meme coins are cryptocurrencies that were inspired by meme culture, often representing a popular joke within that circle or acting as a parody of an existing crypto. While many meme coins experience short periods of rapid growth – followed by dramatic tumbles – some ultimately gain traction. Dogecoin is the strongest example of one doing far better than most people expected.

Utility Tokens

Utility tokens are coins with limited capacity. Typically, they’re designed only for accessing services on a specific platform. They don’t represent an ownership stake in a company or provide dividends. However, they can experience value increases and decreases.

Security Tokens

Security tokens are functionally more like stocks than cryptocurrencies. Typically, they represent an equity stake in a company or provide dividends to investors. Since that’s the case, they’re viewed as securities by various government agencies, including the Securities and Exchange Commission and IRS.

Why Are Altcoins Viewed Differently?

Generally, Bitcoin is the quintessential cryptocurrency. As a result, anything that hit the scene afterward is commonly compared to Bitcoin when it comes to form and function. The fact that the comparison occurs is the main reason altcoins are often viewed in a different light.

However, other factors can play a role. Not all altcoins are as well-established as Bitcoin, which can and does influence whether some people choose to invest in them. Additionally, some may feel that altcoins have more growth potential because the majority are usually available at lower price points.

Additionally, many altcoins aim to correct some of the shortcomings that exist in Bitcoin. This causes them to become functionally or technically different. The end result is that altcoins create some actual separation when it comes to the roles they serve or benefits they offer.

Are Altcoins Good Investments?

If you’re looking to safely invest in crypto, you’re likely wondering whether altcoins are a good investment. The issue is that far too many altcoins already exist in the marketplace to make a blanket determination.

Along with functional and technical differences, popularity plays a big role when it comes to the value of an altcoin in essentially every altcoin category, aside from stablecoins. Additionally, what’s popular isn’t always the most capable or useful coin.

Speculation is another factor that impacts most cryptocurrencies. By and large, altcoins aren’t backed by other assets. Since that’s the case, their value is based on potential applications, broader market adoption likelihood, and similar points that are hard to predict.

Some altcoins have effectively died out because they didn’t gain traction, even though their underlying concepts and technologies were sound. Others were actually scams, serving as little more than a way for someone else to collect funds from investors before vanishing.

In the end, the altcoin market is risky, volatile and mainly unregulated. It’s not possible to say if altcoins as a category are a good investment. Instead, you should research individual coins to determine if they align with your investment strategy and only pursue those where you feel the risk balances out with reward potential.

Growing your crypto wallet balance usually involves taking fiat currency, like U.S. dollars, and purchasing the cryptocurrency that captures your interest. Along with cash-based investing, activities like mining can also do the trick in helping you obtain crypto coins. But what if there was a legitimate way to earn crypto for free – or in exchange for a bit of effort instead of money? That’s where crypto faucets come into play.

If you’re interested in alternative approaches to investing in cryptocurrency, crypto faucets may be the solution you’re looking for. To get started, take a look at this beginner-friendly guide to this earning method.

HOW DO CRYPTO FAUCETS WORK?

A crypto faucet is a website, browser or app that awards you cryptocurrency when you complete certain activities. People began referring to these mechanisms as “faucets” due to the slow, drip-style nature of the way they release rewards. Usually, a simple activity triggers a “drop,” the size of which can vary depending on the platform you’re using and the objective you achieved.

While each crypto faucet is unique, they all have a core trait in common: When you complete a desired action, you receive a small bit of crypto for your efforts. That cryptocurrency goes directly into your compatible wallet, often one associated with the app, browser or site you’re using — though not always.

Qualifying activities vary from one crypto faucet to the next. Some offer free crypto in exchange for viewing ads, completing captchas, answering surveys or taking quizzes. You may see certain platforms offer cryptocurrency in exchange for clicking links — one of the riskier options out there because there’s always a chance that a link is malicious.

In most cases, the website, app or browser holds your crypto rewards as they “drop” and until you reach a specific earnings threshold. Once you do, you can cash them out, which gives you the ability to either use the coins or transfer them to another wallet, depending on the type of crypto involved. In that regard, they aren’t unlike platforms that reward you with points you can exchange for gift cards or similar rewards; they just use crypto instead.

 

THE PROS AND CONS OF CRYPTO FAUCETS

There are several pros and cons to crypto faucets. The most significant benefit is the ability to increase the balance of your crypto wallet without having to invest fiat currency or turn to complex processes like mining.

In most cases, the activities you need to complete are also quite simple. Usually, it only takes a few minutes to finish any particular one. Those that require more effort typically give you larger crypto rewards.

On the drawbacks side, they mainly mimic what you get through other rewards apps, browsers and sites. It can take a significant amount of time to earn enough crypto to cross the withdrawal threshold. Additionally, individual activities may offer very small rewards, essentially paying pennies for several minutes’ worth of effort.

For example, some Bitcoin faucets offer a single Satoshi for certain qualifying activities. If the task is a longer one, you may get several of them instead. However, one Satoshi has only been worth around $0.00039 (based on the $38,529 value of Bitcoin in May of 2022).

Tracking the rewards for tax purposes is also tricky. While you may be getting crypto for “free,” that doesn’t mean you won’t owe income taxes related to that crypto. Depending on how you earn and cash out the crypto, keeping up with all of the data you’ll need for filing could be a challenge.

For rewards that require link-clicking, there’s also the risk of malicious links. Those could lead you to download malware, causing far more trouble than any “drop” amount of crypto would be worth.

 

HOW TO GET INVOLVED IN CRYPTO FAUCETS

In most cases, getting involved in a crypto faucet is simple. Your first step is to find a platform that meets your needs and create an account. Once you do that, you’ll be able to access crypto-earning activities.

Setup processes can vary from one app, website or browser to the next. Some may require little more than some basic details – like your email address and a password – to get started because they store your earnings in a platform-based wallet until you cash out.

However, to access your earnings (even on platforms that send all of the rewards straight to you), you’ll usually need to associate your account with a traditional crypto wallet. That could include wallets on certain other exchanges or investment platforms or your individually held wallet. Without that connection, receiving your crypto may not be an option.

Because associating an outside cryptocurrency wallet is typically a must, it’s critical to practice some due diligence when choosing a site, browser or app where you’ll earn free crypto. Ultimately, you’ll be providing some sensitive information that you’ll want to keep safe.

 

THE BEST PLATFORMS FOR EARNING CRYPTO THROUGH A FAUCET

There’s a variety of crypto faucet sites, apps, and browsers out there. Most reward in a particular coin, allowing you to acquire the cryptocurrencies you prefer by focusing on platforms that offer it.

If you’re interested in Bitcoin faucets, you may want to try FreeBitcoin, Rollercoin, FireFaucet, Bitcoinker or Cointiply. They’re simple to use and fairly popular among crypto faucet fans. Fire Faucet is actually a multi-coin option, allowing you to earn Ethereum, Litecoin or others if you prefer. Cointiply also works for Ethereum, along with Allcoins and Ethereum-faucet.org.

For browsers, you can explore CryptoTab if you’d like to bring in some Bitcoin. Braver offers up BAT, while Osiris provides rewards in ACE.

 

SO, ARE CRYPTO FAUCETS WORTH IT?

Whether you find crypto faucets worthwhile may depend on the amount of time you have available and your interest in completing the various activities. Some platforms offer some fun options, such as playing mobile games or taking quizzes. Others are a bit drier, particularly those involving answer captchas.

Your success with ad-based crypto faucets depends on how you feel about spending your time viewing advertisements. You’ll probably see the same ads repeatedly, which can feel tedious.

However, if you’re genuinely interested in boosting your crypto balance without committing fiat currency to the process, faucets are worth considering. Just make sure you choose a reputable platform and understand that it can be slow going. That way, you’re making a safe choice and keeping your expectations in check

Though bad actors are using cryptocurrencies as a medium with which to conduct Ponzi-like schemes, crypto itself isn't a Ponzi scheme.

For one thing, tokens like bitcoin (BTC) and ether (ETH) do hold value, even in down markets and don't depend on inflows of new money to pay off investors. Rather, holders of these tokens can exchange them for other items of value, or fiat currency, any time they can find a counterparty willing to take their crypto.

There is no central entity giving these tokens the illusion of value, but instead, the investing public’s willingness to pay $17,000 or $21,000 or $68,000 for one bitcoin determines the ultimate market value of the token.

The most popular cryptocurrencies are able to deliver value in and of themselves without the manipulations of a Ponzi scheme operator.

​​Establishing stop-loss and take-profit levels in crypto trading is integral for risk management, especially considering the volatile nature of this space. It's advisable to always consider these risk management strategies, especially in all your short-term investment positions. Entering positions without these strategies is risky as your positions may negatively or positively continue with their trends. 

If you apply it appropriately, a stop-loss will help you to avoid losing a large portion of your investment, while a take-profit helps you safeguard your gains and exit the position positively. Once set, these two strategies execute automatically at the pre-set levels. 

This article discusses stop-loss and take-profit, types of stop-losses, why stop-loss and take-profit levels are essential, and how to set a stop-loss and take-profit. 

What is a Stop-Loss? 

A stop-loss is an order you place to your trades to exit a position if the market moves against your plan. As the name implies, a stop-loss is meant to limit your downside by exiting a position if the market moves against your trading plan. 

For instance, if you create a long position, you plan that the price will increase. But if the asset's price drops, you will accrue losses on your investment. If these losses persist unmonitored, your investment may be significantly affected. Placing a stop-loss order helps you to automatically close a position when the accumulated losses reach a certain level. 

When setting your stop-loss, consider the existing market conditions and period you plan to keep your investment. Technical indicators that evaluate market conditions, such as support and resistance levels, moving averages, and market sentiments, are helpful here. Besides, you can set your stop-loss subjectively based on your risk appetite. 

You set your stop-loss above the selling price for a short position since you expect the price to decline. If the market assumes an uptrend, it implies your investment is at risk because you’ve guessed wrong, opening you up to the possibility of losing your entire investment. Therefore, setting a stop-loss will help you to control your losses. 

You set the stop-loss below your entry for a long position since you expect the price to rise. If the market assumes a downtrend, it means your portfolio is at risk. As such, setting a stop-loss ensures your position is closed at a specified point, preventing you from incurring further losses. 

The Importance of a Stop-Loss in Crypto Trading

A stop-loss is essential, whether you are longing or shorting the market. Let's see some of the benefits of setting a stop-loss.

Limiting Losses

The first benefit of a stop-loss is to limit your losses. When you set the stop-loss appropriately, if the market trends against your trading plan, you will only lose what you are willing to lose since you are the one who set the level. It also ensures you lose what you can afford to lose, mainly when trading with leverage, like in margin trading. Generally, a stop-loss prevents one poorly executed trade from significantly affecting your portfolio.   

For example, assuming you own 1 BTC and set your stop-loss at 5%. If the market goes against your projection, you will only incur a loss of 5%. But if you haven't set a stop-loss level, you may lose a significant portion of your portfolio. 

Preventing Premature Exits

Whether you are a newbie or a seasoned trader, you aren't immune to emotional impulses when trading cryptocurrencies – more so during a crash, correction, or bear market. Setting a stop-loss prevents you from making emotional decisions that may adversely affect your position. Without a stop-loss level, fear may control you to exit your trade prematurely. On the other hand, you may also overstay in a losing streak, hoping the market will reverse soon. A stop-loss will ensure you conform to your trading strategy. 

For instance, assume you have Done Your Own Research (DYOR) and bought BTC, but you failed to place a stop-loss order. If the BTC price trend goes against your plan, you may still be convinced that your research is perfect and that the trend will follow your plan soon. As such, you may be tempted to remain open even if bitcoin doesn't seem to reverse, which may significantly impact your portfolio.     

Types of Stop-Losses 

You can apply several types of stop-losses in different market conditions. They include Sell Stop-Loss, Stop-Limit, and Trailing Stop-Loss. Let's discuss each of them in detail.

Sell Stop Order

A Sell Stop-Loss is also known as a Stop Market Order. You can use it to sell a coin at market price when it hits a certain price level (the stop price). The order is implemented when the level is attained, and the coin is sold at the next available market price, which could make a difference in the actual loss incurred than if your entire position was completely closed at the exact price as your stop market order. 

Stop-Limit Order

A Stop-Limit Order resembles a sell stop order – they only differ in execution. Instead of selling the asset at the market price once the stop price is hit, a stop-limit order places a limit-sell. This implies that an order will be completed if the pre-set price limit order level is hit.

Most traders prefer sell stop orders to stop-limit orders because the latter requires the limit price to be met. During market crashes, limit sell orders mostly remain uncompleted, leaving investors holding unto positions in unpredictable downtrends. On the other hand, a sell stop order ensures the order is filled at the best available market price. 

Trailing Stop Orders

A Trailing Stop Order is a modern type of stop-loss that places a fixed percentage below the market price and keeps correcting upwards. For instance, if you enter a BTC long trade at $200 with a trailing stop-loss of 10%, your stop level is at $180. If the price rises by 20% to $240, the stop-loss trails it and adjusts to $216. 

If the asset price starts declining, the stop-loss will remain unchanged, and the position will be filled at a market price of $216. Trend traders often use trailing stop orders to keep their trades open for extended periods without changing their stop levels regularly. 

What is a Take-Profit Order?

A take-profit is a standing order you place to exit a profitable trade once an asset price hits a specified price level. As the name suggests, a take-profit allows you to set a predetermined level to withdraw your gains, letting you take the profit by exiting the trade. 

Suppose you long BTC at $17,000, anticipating its price to appreciate. Since you want to exploit the situation, you set a take-profit order at a point higher than your entry price, say $17,500. If the price of BTC reaches $17,500, the order will be filled and your profits will be locked in. 

Likewise, you can short BTC at $17,500, anticipating the price to drop. Here, you analyze the market and estimate the bottom of where to enter the market. Assuming you enter the market at $17,500 and expect the price of BTC to drop to at least $17,000, you may set your take-profit orders at that specific level.. Your order will be triggered once the price reaches $17,000, and you will have benefited from the price plunge.

The Importance of a Take-Profit Order

There are multiple benefits of a take-profit order:

Ideal for Securing Quick Gains

A take-profit order is ideal for investors focusing on short-term gains. If the price of an asset appreciates as projected, a take-profit order will help you to secure your profits by exiting the market when the trigger price is reached. 

Minimizes Emotional Trading

As an investor, you might grow a personal interest in the success of an investment. This can stress you and even make you start second-guessing. By placing a take-profit order, you can proceed with other activities stress-free since you have already committed to the exit level and cashed out the profit, if it hits your desired price target.

How to Set Stop-Loss and Take-Profit Levels

You can use multiple methods to establish the best stop-loss and take-profit levels. You might apply these methods independently or in combination, but they all have a mutual objective – to utilize the available data to make more informed investment decisions. They include:

Support and Resistance Levels

An asset's support and resistance levels are primary elements of technical analysis in the stock and cryptocurrency markets. These are zones in a price chart that are more likely to have high trading activity – either bids or asks. You should expect downtrends to stop at a support level because of a high number of ask orders (buy requests). On the other hand, you should expect the uptrend to stop at a resistance level because of a high number of bids (sell requests).  

When using support and resistance levels to set stop-loss and take-profit levels for long positions, you should place your take-profit order below or at the next resistance zone, while stop-losses should be placed below the resistance zone you have identified.  

Moving Averages

Moving averages (MAs) help you sieve market noise and smooth price action data to establish a market trend. You can calculate the MAs based on your preference – over a short or long-term period. You should monitor MAs closely to find opportunities to short or long, as illustrated by crossover indicators – two different MAs (say a 50-Day MA and a 200-Day MA) cross on a chart. Often, you will spot a stop-loss below a long-term MA. 

Percentage Method 

Instead of a predetermined level based on technical indicators, you can utilize a fixed percentage to set a stop-loss and take-profit level. For example, you can place your stop-loss or take-profit once a token's price is 8% below or above your entry price. Moreover, the percentage method is the easiest, which is ideal for investors who are less familiar with technical analysis. 

Market Sentiments

You can establish the stop-loss and take-profit levels based on the market sentiments. For example, you can place a stop-loss on your portfolio following a major crypto event, like the recent FTX collapse. 

Conclusion: Stop-Loss vs. Take-Profit

Stop-loss and take-profit are two essential risk management strategies you should consider, especially in your short-term trading plans. The difference between them lies in their objectives. A stop-loss is designed to cap the loss you can incur from a trading position. The trigger price is always lower than your entry price if you’re in a long position and it is higher than your entry in a short position. On the other hand, a take-profit order is meant to capitalize on short-term profits on open trades. If you have a long position on an asset, the trigger price usually is higher than the entry price, meaning you will exit the market at a profit. Though these strategies have different objectives, they work perfectly together.

 

In the the crypto world, each token issued on a blockchain that supports smart contracts or is compatible with the Ethereum Virtual Machine (EVM) follows a guideline known as a token standard. The guideline informs users how to mint, issue, and deploy new tokens using the underlying network. As such, token standards are part of the smart contract standards, which are vital in such networks to keep communication between smart contracts seamless.

Currently, Ethereum is the most common smart contract blockchain. Its developers have created multiple popular token standards for various smart contract applications. The most common standard is the Ethereum Request for Comments (ERC), which exists in different formats like ERC-20, ERC-721, ERC-777, and ERC-1155.

Other than Ethereum, the Binance blockchains—Binance Chain and Binance Smart Chain (BSC) – are also quite popular among the crypto community. They have their own set of token standards, namely BEP-2 and BEP-20.

 

This article covers the BEP-2 vs. BEP-20 vs. ERC-20 comparison. It defines what each standard is, the top tokens in each standard, and concludes by answering the question, which one should you use?

What is a Token Standard?

Tokens are digital units that live on a blockchain. They often have specific use cases and play roles including:

 

Facilitating transactions

Acting as a store of value

Enabling digital assets, like in-game currencies

Facilitating governance processes.

Thousands of new crypto projects each year issue their own tokens, mainly on the Ethereum and BSC networks. For these tokens to be compatible with the underlying chain’s standards, they must follow the network’s token standards. These standards outline the rules for minting and deploying new tokens. Generally, the standards stipulate requirements for:

 

The total supply limit of the token

The issuance processes

The burning mechanism

The process for executing transactions.

These standards are meant to help mitigate fraud, technical incompatibilities, and the minting of assets not conforming with the underlying network’s principles. For instance, the rules for total supply and new token issuance can help prevent potential asset value depreciation.

 

What is BEP-2?

BEP is an abbreviation for Binance Smart Chain Evolution Proposal. BEP-2 is the token standard for minting and deploying tokens on the Binance Chain – Binance’s first blockchain. It stipulates a set of rules assets should abide by to operate in the chain, and it was initially designed for centralized and decentralized exchanges. Besides, BEP-2 is the primary token standard for Binance’s native coin – BNB.

But this standard setup for BNB presents significant limitations for utilizing BEP-2 tokens. Specifically, BEP-2 tokens don’t support smart contacts, which most cryptocurrencies and decentralized applications (dApps) depend on to function. As such, you can only use BEP-2 tokens for paying transaction fees on Binance exchanges. However, you can unlock the utility of BEP-2 tokens by converting them to BEP-20 tokens for use in the DeFi space.

 

Here are some BEP-2 tokens available on the Binance Chain:

 Fantom (FTM)

Fantom is a scalable blockchain infrastructure for DeFi, dApps, and business applications. The Fantom blockchain launched in December 2019 to offer a feasible solution to the blockchain trilemma by balancing scalability, security, and decentralization. Its native token, FTM, facilitates governance, staking, payments, and transaction fees on the ecosystem and has a BEP-2 version.

 Bitcoin BEP2 (BTCB)

BTCB is a bitcoin-collateralized stablecoin issued by the Binance exchange. It is fully backed by bitcoin reserves, and it tracks the value of bitcoin. BTCB was designed to bridge Bitcoin and Binance blockchains. It’s important to note that Binance controls ownership of the bitcoin reserves; thus, BTCB is highly centralized.

 Binance USD (BUSD)

BUSD is a fiat-collateralized stablecoin launched by Binance and Paxos Standard. Every BUSD token is pegged 1:1 with the US dollar locked in reserves. BUSD strives to offer a more stable crypto alternative for users who want to minimize their exposure to volatility. Although Paxos mints BUSD tokens on the Ethereum network, Binance supports Binance BEP-2 BUSD tokens.

 Polkadot (DOT)

Polkadot is a cross-chain protocol that links networks, enabling value and data transfer across previously incompatible blockchains. Besides, it is meant to be fast and scalable. DOT is the native token of Polkadot, and it has a BEP-2 alternative. It facilitates staking and governance of the Polkadot ecosystem.

 Cardano (ADA)

Cardano is a Proof-of-Stake (PoS) blockchain based on peer-reviewed and evidence-based techniques. It aims to offer improved security and sustainability to dApps, businesses, and DeFi. ADA powers the Cardano ecosystem, and it supports the BEP-2 standard.

 

What is BEP-20?

BEP-20 is a token standard for BSC. It’s a multipurpose standard compatible with BEP-2 and ERC-20 standards. This makes BSC easily compatible with the EVM. Besides, it is the token standard for the BNB coin on BSC – BEP-20 standard BNB coins are the native coins for BSC.

Since BEP-20 was invented after the launch of ERC-20, it draws a lot of inspiration from it. As a matter of fact, the BEP-20 standard shares many similarities with ERC-20 and is compatible with Ethereum smart contracts and the EVM. Besides, it’s highly interoperable, facilitating easy swapping of BEP-2 tokens to BEP-20 tokens. BEP-20 and BSC have unlocked opportunities for Binance Chain users to access the rapidly growing dApp landscape. Within the first year of release, BSC emerged as Ethereum’s primary challenger for creating dApps.

 

Below are the top BEP-20 tokens:

 PancakeSwap (CAKE)

PancakeSwap is a decentralized exchange (DEX) for trading BEP-20 tokens on the Binance blockchain. Besides the token swapping feature, it also supports yield farming, Syrup Pools to stake CAKE, a lottery where winners can win CAKE prizes, a prediction market, an NFT marketplace and Profile System, Initial Farm Offerings (IFO), perpetual trading, and community governance.

 Safemoon (SFM)

Safemoon is an automated liquidity-generating protocol on a mission to provide “safe” gains via strategies like static rewards, manual token burns, and automatic liquidity trading to avoid dramatic valuation bubbles. SFM runs on BSC and has deflationary characteristics, where half the transaction fees are redistributed to investors and the rest burned.

 Cream (CREAM)

Cream consists of a decentralized lending platform and a DEX (Cream Swap), which lives on Ethereum and BSC. Cream users can lend various digital currencies to earn interest. Borrowers can borrow by collateralizing their crypto holdings to receive loans from the liquidity pools. CREAM is the native token of the protocol, which facilitates the governance process.

 BurgerCities (BURGER)

Previously BurgerSwap, BurgerCities is a DeFi protocol that integrates DeFi and NFT to build a unique and standardized Web3 metaverse. In BurgerCities, you can participate in daily events, like socializing and gaming. BURGER is the native token for BurgerCities that powers all activities.

 SXP (SXP)

SXP, formerly Swipe, is a decentralized protocol that strives to fill the gap between fiat and digital currencies. Its main product offerings include Visa debit cards and a multi-asset web3 wallet, which enables near-instant swaps for crypto, fiat, and stablecoins.

 

What is ERC-20?

ERC is an abbreviation for Ethereum Request for Comment. ERC-20 is the technical standard for building and implementing smart contracts on Ethereum, and ERC-20 tokens are digital currencies that live on Ethereum and follow the ERC-20 token standard. The Ethereum network was developed for smart contracts – digital agreements programmed to execute automatically when predetermined rules are met. This functionality enables the creation of many types of dApps; hence, many platforms and related tokens are built on the Ethereum network.

 The ERC-20 token standard was proposed by Fabin Vogelsteller, one of the co-founders of Ethereum, in 2015 as a method to standardize smart contract tokens on Ethereum. He made the proposal through Ethereum’s GitHub page as an Ethereum Request for Comment. Since it was the 20th comment, it was named ERC-20. The proposal was approved and executed in 2017 as Ethereum Improvement Proposal 20 (EIP-20). But it still maintained its initial name as the submission had gone viral among the Ethereum users.

 

Below are the top five ERC-20 tokens based on market capitalization:

 Tether (USDT)

USDT is a fiat-collateralized stablecoin that tracks the value of the US dollar. It is the most-traded cryptocurrency, as well as the first stablecoin to be launched and the biggest stablecoin by market cap in the entire crypto market. While USDT is also available on Tron, EOS, Liquid, and Algorand, its Ethereum-issued token is the most popular version.

USD Coin (USDC)

USDC describes itself as a fully fiat-collateralized stablecoin, and is also pegged 1:1 with the US dollar. In terms of market capitalization, it is catching up to USDT, with over 30% market share of the stablecoin market.

Binance USD (BUSD)

As mentioned above, BUSD is a fiat-collateralized stablecoin issue by Paxos and Binance, pegged 1:1 with the US dollar. Its ERC-20 version facilitates loans, payments, and other payments on the Ethereum ecosystem.

Dai (DAI)

DAI is issued by the Maker protocol. It’s the first crypto-collateralized stablecoin that tracks the value of the US dollar. Unlike USDT, USDC, and BUSD, DAI collaterals are crypto assets, which are stored in smart contracts instead of centralized custodians.

 Uniswap (UNI)

Uniswap is a DEX that facilitates the smooth swapping of ERC-20 tokens without intermediaries, simply requiring users to connect their web3 wallet to Uniswap. UNI is the native token of Uniswap that enables governance.

If you are a crypto user interested in dApps and DeFi at large, the most crucial point to note is that BEP-2, BEP-20, and ERC-20 are token standards their respective chains apply to achieve various purposes. If your wallet supports these standards, the specific transactions are processed in their corresponding blockchains – Binance Chain for BEP-2, BSC for BEP-20, or Ethereum for ERC-20. Though the BEP-2 standard is a good choice for DEX-based crypto trading with lower transaction fees, it doesn’t support smart contracts and is incompatible with EVM.

 

BEP-20 and ERC-20 both offer access to a wide range of dApps and smart contract tokens, although the latter offers a broader selection of dApps than the former. That said, please take note that the number of dApps mentioned above is not exhaustive as there are additional protocols that are unrecorded. However, the BEP-20 standard offers lower transaction fees and faster processing times than the ERC-20 standard.

 

Ultimately, choosing which token standard to use depends on your requirements, and whether it is supported by the dApp you wish to interact with. As always, remember to do your own research before interacting with dApps and investing in cryptocurrency.

With the emergence of the Bitcoin blockchain in 2008, blockchain became a key technology that distinguished itself from other technologies by solving the double cost problem. Non fungible tokens, or NFTs, were created with the help of blockchain technology, which provided non fungible tokens with scarcity and interoperability. But what is Metaverse’s relationship to blockchain technology and NFTs? Why are NFT experts vouching for the Metaverse? What are the best NFT tokens?

The Metaverse

When Neal Stephenson’s science fiction novel Snow Crash was published in 1992, the term “metaverse” became popular. Humans engage with each other and with software agents such as avatars in this book in a three-dimensional realm that serves as a metaphor for the actual world. While Stephenson coined the phrase, the concept of a virtual reality-based successor to the internet was already being explored by internet pioneers in the late 1970s and early 1980s who saw the internet of the future as a shared virtual world. A place where our physical world merges with the virtual, resulting in new electronic areas somewhere in the between.

The rules are different in these areas. People become what they wish to be in their daily lives. They can bring their digital idols into this world and use digital avatars to represent their inner self. Some have delved into conceiving the metaverse now that the term “Metaverse” has gotten popularity in the mainstream.

WEB 3.0 AND METAVERSE

The Metaverse and its growth into all aspects of society, as well as Web 3.0 and the democratization of the web, are two trends that will influence the world in the next 10–15 years.

But aren’t Metaverse and Web 3.0 interchangeable? Similar to how there is still no comprehensive description for Metaverse, there is also no consensus on what Web 3.0 is, both of which are still under development.

It supports both games and social places, such as Second Life, one of the fruitful initiatives to establish a metaverse entrance, but the Metaverse isn’t merely the web.

NFTS AND METAVERSE

What’s more, what’s to come is already pounding on the door, but it wasn’t long ago that no one knew how this space with a few virtual universes would reach its maximum capacity.

Could the Metaverse, in general, alter not only how people interface with the electronic world, but also a portion of this current reality?

The incorporation of NFTs into the Metaverse has triggered a shift in our affiliations in virtual universes, affecting a portion of our current reality. Gucci attempted to attract new clients in the Metaverse with the game Roblox.

Wrapping up

In digital media, NFTs are the depiction of a non fungible asset. An NFT is a piece of software code that confirms your ownership of a non fungible digital asset, or the digital representation of a non fungible physical item in the digital medium. It is crucial to note that NFTs existed before the first blockchain, but blockchain technology has altered NFT markets by resolving the double-spending problem and imbuing a non fungible token with scarcity, uniqueness, and legitimacy. As a result, when an NFT is recorded on a blockchain, it becomes a truly “unique” item that cannot be counterfeited, tampered with, or scammed. Standardization of core properties of NFTs such as ownership, transfer, and access control, as well as new attributes such as specifications on how to claim an NFT, has been brought about via blockchain technology.