The Top Cryptocurrency and Blockchain Projects in 2018

There’s been a change in the outlook for cryptocurrency during the past few months. People seldom talk about the markets or the price of Bitcoin. Volatility has been causing a lot of uncertainty, and mainstream adoption came to a virtual standstill.

Nonetheless, the cryptocurrency space showed remarkable resilience as blockchain projects continue to expand its borders with more lateral thinking and “out-of-the-box” blockchain solutions. We’ll explore some of their use-cases and find out whether these currencies and platforms are the next big thing.

 

Why People Invest in These Projects

Despite the recent lull in cryptocurrency trading and mining, blockchain projects and ICOs are very much in the business for 2018. Investors and tech companies remain optimistic about the future of the cryptocurrency space amidst tightening restrictions and negativity. In fact, according to Coindesk, the amount of money raised in ICOs in the first quarter alone exceeded the total amount last year.

Most ICOs and blockchain projects didn’t end up well for a lot of investors (more than 90% failed to deliver). However, there are a few examples like Binance and EOS which turned out as good investments. Binance became one of the leading cryptocurrency exchanges with a BNB market cap of over $1 billion – the second most valuable token on Coinmarketcap. EOS, on the other hand had a successful, albeit controversial mainnet launch, and is now a full-fledged decentralized application platform second only to Ethereum.

Smart investors consider the current state of affairs as a golden opportunity to hunt for new projects with the greatest potential, particularly in their early stages when they are mostly undervalued. Investing early on has the advantage of maximum gains with the least amount of exposure. For instance, a hundred dollars’ worth of investments at ten cents per token won’t break the bank if things go south. But if it turns out to be a real investment, gains will be exponential (e.g., BNB and EOS tokens are worth a hundred times more than their initial price in 2017)

 

 

Blockchain Projects to Watch for in 2018

Finding a good investment can be a real challenge since we’re dealing with dozens of new blockchain projects and ICOs every month. If you’re lucky enough, you might be able to land on some big winners from a list of projects. But before anything else, please bear in mind that this is not investment advice, and you are solely responsible for any gains or losses. That said, here are five of the most talked-about blockchain projects in 2018.

 

Zilliqa (ZIL). Launched in January, the project puts a lot of work in building a highly scalable decentralized platform using a method known as “sharding.” Unlike in Bitcoin, each node will be working in parallel within a group of nodes called “shard,” verifying a subset of all the transactions occurring at the same time (also called parallel processing). Sharding works perfectly in many centralized systems (Ultima Online, Google, etc.). However, it presents an immense technical challenge when applied on a decentralized environment. Ethereum has been working hard on it as part of its on-chain scaling solution in hopes of solving the security/scalability/decentralization trilemma. Zilliqa’s entry into the whole sharding scene threatens to steal the thunder from Ethereum by becoming the first to come up with a workable solution. Some estimates it to be around January 2019. Key features include:

  • faster transaction throughputs (speed improves as the network grows)
  • employs practical Byzantine Fault Tolerance as a consensus mechanism
  • reduced energy consumption (mining is spaced a hundred blocks apart)
  • maintains a decentralized network structure (a new shard is created for every 600 nodes)

Basic Attention Token (BAT). Cutting the middleman goes beyond peer-to-peer transactions to include decentralized, blockchain-based digital advertising in the form of an open-source, ad-free browser with its own currency. Brave Browser is one of today’s hottest Internet browsing software because it allows users to block ads and trackers completely free. In fact, as many as 3 million people have already been using Brave, becoming one of Google Play’s top ten in the Android browser category. The project is moving towards the creation a decentralized advertising platform using its own currency – Basic Attention Token – to incentivize both content creation and user attention. It works in some ways like Google Ads but in a more transparent and decentralized manner. The key advantages of BAT from an investor’s point of view include:

  • good potential for adoption (sold out BAT worth $35 million in 30 seconds)
  • strong support from the community (Brave browsing experience receive a lot of positive feedback from users)
  • a solid team of experienced developers (founded by no less than the co-founder of Mozilla, Firefox, and creator of JavaScript)

Kin (KIN). Canadian messaging app company Kik Interactive is making headway into cryptocurrency adoption with the launching of Kinecosystem. The company hopes to build a community of users and developers sharing resources, and making digital goods and services. However, unlike most blockchain startups with no real users, Kin’s integration into the Kik Messenger meant its value could potentially rise with over 300 million active users.  The company is now moving towards the next phase, inviting all developers and content creators in building the ecosystem for large KIN payouts. Gains will take time, but you might want to consider its advantages, namely:

  • KIN’s practical use-case as a digital currency on an existing application (Kik has been in use since 2010)
  • user base is mostly made up of digital-natives (teens, millennials, and active mobile users)
  • Kik’s emphasis on anonymity

DeepBrain Chain (DBC). Blockchain companies like DeepBrain Chain sees decentralization as the future of the AI industry. Development of AI applications use up a huge amount of computing power. DeepBrain Chain works by utilizing computational resources across millions of nodes on the neural network in building AI applications which are then published onto the blockchain. Nodes that successfully deploy mirror images will receive payouts in DBC. It plans on migrating out of NEO to its own mainnet in Q4, with its own consensus algorithm (proof of importance and delegated proof of stake). The goal is to become the deep learning machine for the AI industry. Successful adoption is achievable through:

  • growth in people’s interest in the AI industry
  • reduced computational cost of AI companies through resource-sharing
  • secure, decentralized method of storing AI information.

Wormhole. Bitcoin Cash might soon be able to run smart contracts through its proposed protocol layer known as Wormhole. Developers plan on forking the Omni Layer to create a platform for smart contracts on top of Bitcoin Cash. Much of it is still in the works as of this moment, but news is, they’re going to issue a token named “Wormhole Cash.” Investors and crypto-enthusiasts are keeping track of its progress since it is expected to have a very high demand upon release.

 

Conclusion

The cryptocurrency space has been constantly evolving even as the noise and the hype surrounding cryptocurrency have mostly faded. Cryptocurrency is here to stay, and we’ll be seeing more projects in the near future that will bridge the gap between the average user and blockchain technology.

Facebook’s Update on Crypto-related Ads – Why Should It Matter?

Facebook hit the news when it back peddled on its decision to ban cryptocurrency ads outright from the social media platform. This has now made technology companies, cryptocurrency and blockchain communities optimistic this move will set off a precedent for other advertisers to follow, particularly Google and Twitter, who earlier warned of a similar ban on cryptocurrency ads.

What are the implications of Facebook’s reversing its view on cryptocurrency, and what are we to expect about the future of blockchain technology?

 

What Changed After the Update?

Facebook now accepts cryptocurrency ads, but only from pre-approved advertisers who filed their cryptocurrency products and services onboarding request. ICOs and promotions associated with deceptive high-yield investment programs are still banned from advertising.

The update took effect after a six-month hiatus in cryptocurrency ads on Facebook. Apparently, the tech giant have found compelling reasons for reversing some of its decision after being dismissive on anything crypto-related. (uhhh… money of course!) There are also some rumblings Facebook plans on stepping into the cryptocurrency space with their own initial coin offering.

So far, legitimate cryptocurrency businesses like Cointelegraph.com have not been able to boost their posts a day after the ban was lifted. It’s very likely that Facebook is implementing more stringent rules and are, indeed, checking on the advertiser’s credentials with painstaking effort. We’ll learn more about the specific details of the screening process as they unfold.

 

Not a Complete Turnabout

Facebook didn’t go all the way, and instead chose to “loosen” some its policy on cryptocurrency advertising. A recent post from the product management director indicates an eligibility check, which takes into account licenses and pertinent documents submitted by each applicant. Facebook wants to avoid another Bitconnect incident or turn it a breeding ground for ICO scams (70% of advertised ICOs failed to materialize).

There’s no guarantee that every cryptocurrency and blockchain businesses would receive their stamp of approval. The least they can do for now is hope they don’t get screened out or send the wrong signal to the management and mistake them for ICOs or HYIPs. Facebook is open to the idea of revising this policy as they see fit and encourages everyone to give their feedback.

 

More KYCs and Background Checks on Advertisers

All advertisers in cryptocurrency must be “pre-approved” before posting ads on Facebook. To do so, they have to disclose information about their company such as:

 

  • purpose and nature of their business
  • Facebook ad account ID
  • website domain
  • licenses and credentials
  • company name
  • business address

You can apply for your pre-approval HERE

 

 

 

 

 

 

Facebook, basically, performs due diligence on advertisers on behalf of its users, which is a good thing for cryptocurrency. Done right, this might actually boost investor confidence. With stricter regulation in place, Facebook hopes to open more opportunities which could further mass adoption for cryptocurrency, and significantly increase ad revenue to the company.

Meanwhile, cryptocurrency and ICO scams might have a hard time after the update, but that doesn’t necessarily mean Facebook won’t have any of those. In fact several cryptocurrency and ICO scams were still able to get through, ironically, even after the ban on cryptocurrency ads.

 

What Changed Their Mind?

Facebook wasn’t so clear about the reason for partially lifting the ban on crypto-related ads. People have their own views and offer some explanation as to why this is the case.

Missing Out On Revenue. At times, Facebook is more worried about optics then revenue. This isn’t necessarily a bad thing but when it comes to crypto, Facebook has constantly missed the boat. This is evident when Facebook took a massive hit in market value recently. One of the main reasons for the price dip is the lack of awareness in its underlying technology; censoring out everything crypto-related from their platform could only serve to aggravate the situation. By encouraging users to learn more about the cryptocurrency through ads and meaningful social interaction, they might as well rack up huge profits along the way.

Facebook’s Launching Its Exploratory Blockchain Group. For a tech company this huge, it’s not difficult to imagine Facebook having its own native currency in the near future. Their announcement about the launching of an exploratory blockchain group has led to some rumours about their future involvement in the cryptocurrency space. If true, then this could mean adoption on a massive scale with its two billion plus users worldwide.

 

Conclusion

Facebook’s decision to lift the ban on crypto-related ads is a statement on cryptocurrency’s future utility as a store of value, or even as a medium of exchange. There’s no denying that cryptocurrency and blockchain technology has become a major force in shaping our current financial system. They might, as well, be a part of it instead of closing doors on an opportunity which could probably give them a decisive edge along the way.

If you’d like to know more about cryptocurrency, blockchain and minning, you can pick up the Living Book HERE

Gone Hunting – How Bounty Hunters Are Pushing Borders for Cryptocurrency

Bounty hunters conjure up images of the Wild West where people search for outlaws to get rewards. (Blame Hollywood for that.) In a decentralized world of cryptocurrencies, bounties are given to anyone who fulfils a given task or solve a particular problem, not with cash but with cryptocurrencies and tokens.

So why talk about bounties when people could just get them through mining contracts or buying from exchanges? We’ll look at the implications of bounty hunting for cryptocurrency and why this could help solve specific problems the industry is currently facing.

 

Bounty Systems in the Cryptocurrency Space

Cryptocurrency goes beyond cashless, decentralized peer-to-peer payment systems by adding a new sector of the cryptocurrency economy. Primarily a mining industry, it quickly grew to include trading, investing, blockchain startups, ICOs, and now, a system of rewarding people for offering their work to the community.

With the arrival of bounty systems in the cryptocurrency space, we might well be seeing a revival of interest in rebuilding a decentralized economy. Bounty hunting invites everyone to participate without spending a dime on expensive mining equipment, or putting investor’s money on the line. All it takes is a range of skills in online marketing, coding, and a little bit of “hunting.”

Bounty hunting programs come in many forms. The most popular ones include signature campaigns, content creation, social media likes and/or posts, debugging, and coding. There are even bounties for tracking down hackers, fraudsters, and cyber-criminals; almost like a bounty hunter in a real sense.

 

 

Building Stronger Communities with Bounties

More people are taking interests in bounty hunting as barriers to entry in the crypto-space become more challenging during the past few months (crackdown on ICOs, mining farms, and cryptocurrency exchanges). Bounty systems provide a clever solution to get around excessive prohibitions and create an environment which could benefit all members of the community using their own resources.

Development teams and startups have benefitted a lot from bounty hunting programs. It accelerated the process of building new applications for blockchain and raising awareness about cryptocurrency by outsourcing some of the best talents in the cryptocurrency community. In return “hunters” are given cryptocurrencies like Bitcoin, Ethereum, or ICO tokens as bounties.

ICOs have saved a lot on marketing campaigns by using their own tokens as rewards. Bancor (BNT), and Iconomi (ICN), are just a few examples of successful ICOs that used bounty system as part of their marketing strategy. Some bounties were also offered for bug fixes. Status (SNT), had been giving away $1 million worth of tokens to anyone who can submit potential solutions to bugs in their software.

 

 

Bounty Hunters Reshaping the Online Industry

Global freelancing sites were among the first to “decentralize” the jobs market, allowing both sides to find the right people for the job, and the most rewarding work aside from the usual 9-5 jobs. Competitive industries such as online marketing, advertising, and software development come to these sites to fill the gaps in their workforce or hire additional personnel on a shoestring budget.

Bounty hunting sites might well become the future of decentralized freelancing for blockchain businesses. Bitcointalk.org, Bounty0x.io are among the few sites which offer bounty hunting programs for tasks like:

 

  • Signature Campaign
  • Content Creation
  • Social Media Posts/Tweets
  • Coding and Debugging Software
  • Translating into Different Languages

 

Majority of bounty hunting programs aims at increasing people’s awareness about a new blockchain project and cryptocurrencies as a whole. Cryptocurrency is pretty much uncharted territory as a niche topic for most content creators. Hence, competition for writers and YouTube creators in the cryptocurrency industry may not be as tough as popular ones. Likewise, bounty hunting can also be an alternative source of income for coders with some background in distributed systems. Finally, people can work as translators for their ICO company’s whitepaper, any cryptocurrency for that matter.

For blockchain companies who bank on Google and Facebook for advertising, this seems to be the best, if not the only recourse, to circumvent their decision to ban cryptocurrency-related advertising on their platforms. But this might only be just the beginning, and cryptocurrency community could come up with more creative ways to grow without them. (Hint: the Internet, by design, is a decentralized network and has no single point of failure).

On the bright side of things, blockchain companies won’t be spending much on paid Google and Facebook ads. Instead, they can allocate their resources as bounties to spread the word about cryptocurrency or about a new startup company.

 

Some Potential Drawbacks to Keep in Mind

Bounty systems are also a potential for misuse, especially ICOs and promoters of cryptocurrencies who might use them for their pump-and-dump schemes. Bounty hunters might not realize they had a hand in spreading FOMO on an ICO or worthless cryptocurrency until it’s too late.

Bounty hunters might also end up with nothing after spending hours fulfilling the bounty task, or their tokens turn out to have very little value after the ICO. Not all bounty hunting programs are legit or turn out as expected. We still have to do our research and due diligence to have a high chance of success.

 

Conclusion

Bounty hunting as a two-way process helps build our cryptocurrency community. It calls on everyone, from every part of the world to participate in a global effort to bring cryptocurrency and blockchain technology into perfection. By doing so, we’re also sharing with everyone the very thing that runs our cryptocurrency economy.

Should I Invest In Initial Coin Offerings?

Blockchain projects and start-ups open up a new world of opportunities for many cryptocurrency investors and venture capitalists. Initial coin offering allows investors to gain a decisive edge as pioneers and early adopters of new cryptocurrencies, and the latest applications and innovations in blockchain technology.

There’s a lot of success in recent Initial Coin Offerings (ICOs) of 2017, raising more than 3 billion USD in capital investments and token sales. (More about this later.) It became the latest buzz since Ethereum, and today we have more than 600 tokens created through these events – and counting.

However, ICOs recently came under fire and had been thoroughly scrutinized, or banned outright in some countries, due to their mostly unregulated status and reports of unsuspecting investors losing thousands, or even millions of dollars in ICO scams. In fact according to a report by the Wall Street Journal, around $300 million was money raised by coin offerings has gone to fraud or scams.

In this chapter, we’ll look at ICOs from a well-founded, and unbiased point of view, considering both pros and cons to help us come up with our own financial decisions whether or not to invest in them.

 

What are Initial Coin Offerings?

An initial coin offering is the stage or period in the development of a blockchain project where start-up companies or a group of people generate funds through crowdselling – a form of crowdfunding that issues tokens to contributors. Upon completion, creators and organizers of an ICO would launch the project (cryptocurrency, blockchain app, platform, etc.) and distribute tokens to all its participants. Some ICOs have their tokens already listed and traded in exchanges before the network launch to stimulate hype and move its value up through market price actions (e.g., EOS).

Some investors and regulators compare ICOs to initial public offerings (IPOs) because they’re both used to generate funds by issuing financial instruments tradable in a public exchange. However, such reference is made irrespective of the time of their execution.

Unlike IPOS, most ICOs are done when start-up companies have yet to prove themselves, and there’s nothing to back their claims except for several pages of whitepaper outlining their business model or concept. Participants usually buy indirectly through the ICO’s website and receive their tokens at a specified distribution date.

IPOs, on the other hand, are done on a public exchange, after companies have long been established and have already proven their worth. The main goal of an IPO is to raise capital to support its operations and to grow the company on a massive scale.

The financial instruments issued by ICOs and IPOs may also be classified as securities, but they may not exactly be of the same type. Tokens sold prior to, or within an ICO period are considered IOUs or (loosely) bonds with a set face value. After a successful launch, tokens are issued to all the participants, at which point, they may no longer be considered IOUs or bonds, but more like shares in an IPO where their value is determined by the market. But the main purpose of ICOs and IPOs from an investor’s point of view is essentially the same.

Currently, there are no fixed regulations about ICOs. However, there are a few who perform KYC on their contributors. It’s the mostly unregulated status of ICOs that make investing in these blockchain-based ventures extremely high-risk. But on a positive note, they can also be extremely profitable by as much as tenfold compared to other markets. In contrast, IPOs are highly regulated and closely monitored by authorities to protect the rights of investors. Certified investors in an IPO must also meet certain qualifications before they can be allowed to invest on a stock.

ICOs typically last for several weeks and may consist of token sale “rounds.” Prices of tokens increase in value with every round. Some ICOs run for months and had their tokens already listed on exchanges before the project launches. There’s also a pre-sale or pre-ICO where tokens are sold at wholesale prices to institutional investors and some small investors to jumpstart the project. Some pre-ICOs offer perks and exclusive bonuses to early adopters.

ICOs can be a great way to raise funds, and not just for companies looking to create a new cryptocurrency. Anybody from traditional companies, tech companies, and even Venezuela is getting in on the act. However, the United States is trying to block American citizens from purchasing the digital currency issued by Venezuela which, according to President Nicolas Maduro, raised $5 Billion.

In fact, ICOs have become a new mode of crowdfunding, blending investment returns with the possibility of an actual physical product.  Indiegogo, the crowdfunding platform is testing out a new product where you can invest in ICOs and blockchain. The first ICO they helped sell tokens for was called The Fan-Controlled Football League, a fantasy-style league which lets the football audience decide everything in real time. They are selling up to $5 million worth of tokens.

Stock Exchanges Vs. Cryptocurrency Exchanges: What’s the Difference?

In the traditional sense, exchanges are marketplaces where securities, commodities, and financial instruments are traded. Stocks and foreign exchange markets are traded in exchanges such as NYSE, or in the case of Forex, international banks and dealers working with exchange rates.

Cryptocurrency exchanges borrowed the idea from traditional exchanges. But instead of securities like stocks and bonds, traders deal with fiat and virtual currencies over the Internet. To have a better understanding of how cryptocurrency exchanges work, we will give some examples from real-world exchanges.

Exchanges are an essential part of the whole cryptocurrency ecosystem. They provide easy access to anyone who wants to trade digital assets apart from cryptocurrency mining. You’ve probably came across some of them, the most popular ones being GDAX (via Coinbase), Bittrex, and Poloniex.

At the moment, there are more than a hundred exchanges operating in many countries across the world today. We will take a closer look at how cryptocurrency exchanges work, and some basic information on how to use them.

 

How Exchanges Have Evolved

Savvy business owners and investors are always looking at markets for opportunities to further their business and financial goals. To a business owner, they can be used to raise capital by issuing bonds and shares to investors. Think of publically traded companies like Facebook, Amazon, and Microsoft. An investor sees exchanges as opportunities to make more money by purchasing stocks that would eventually grow in value.

However, there’s a certain limit to the number of shares a company could issue based on its total market value, and companies may choose to hold some of them for future use. Once it goes public, these stocks are traded in exchanges and investors can start buying and selling them through brokerages. (Chapter 3 explains how ICOs work in many ways like IPOs)

The first stock to trade on the NYSE was The Bank of New York in 1792 and still operates in Manhattan under the name Bank of New York Mellon.

For decades, trading floors were the center of activity for many traders and investors. Over time, traditional exchanges have evolved and most trading floors are now replaced by online trading platforms and automated trading software. The NASDAQ Exchange, which started out as an electronic price quoting service, was the first to implement automation to an exchange without the need for physical trading floors.

This transition provided the right environment for cryptocurrency exchanges to thrive in the outer reaches of the cyberspace. Cryptocurrency exchanges don’t have physical trading floors like NASDAQ or NYSE, but they provide greater access to millions of people across the world to buy, sell, and trade cryptocurrencies at a much cheaper cost.

Cryptocurrency exchanges also don’t require a sizeable amount of money to start trading, and fees are way much lower compared to traditional exchanges. In traditional exchanges, you usually need at least $1,000 to open and maintain a brokerage account, and you’ll have to pay commissions on each trade, maintenance fees, and low-balance penalties.

In contrast, cryptocurrency exchanges can be accessed directly on a person’s PC or smartphone without going through these brokerages. Anyone with access to the Internet can set up their own cryptocurrency exchange account at no cost and with no minimum deposit.

However, you need to familiarize yourself with exchanges since you’re basically doing all the research and hands-on trading all by yourself. Moreover, cryptocurrency exchanges don’t have the same level of government regulation as do traditional exchanges, and thus involve some risk.

There’s also a limit to certain privileges on most regulated exchanges depending on your account verification level. Typically, the longer you stay or trade on your exchange account, and the more information you give about yourself, the better your chances are at getting verified and increase your trading limits and withdrawals.

 

Familiarizing Yourself with Exchanges

Cryptocurrency exchanges borrowed many terminologies from traditional exchanges. Experienced traders know these terms by heart, but for those who are just learning the ropes, some words and phrases are a bit baffling. We’ll explain them here in layman’s term and provide some examples as needed.

Order Book – A list of all the buy and sell orders of traders in a market. It specifies the total number of bids and asks on a trading pair (e.g. BTC/USD), their quantity (size) and price, and presents them in graphical form. Order books play an important role in “price discovery” where the majority of traders agree on a certain price, thereby filling those orders and setting the current price of a given asset. Order books are now fully automated, capable of handling millions of buy and sell orders instantaneously. The process can be observed in real time in exchanges like GDAX, Bittrex, and Poloniex.

 

Trading Pair – Two different currencies traded on a market. With ETH/BTC trading pair, people are either buying Ethereum with Bitcoin, or selling them for Bitcoin. Traders set the bid and ask price of the currency they want to trade with using another currency. To put into perspective, in an ETH/BTC trading pair, ETH is the “commodity” being bought and sold, and BTC is the “currency” used to pay for them. Although, not an exact analogy, people who are new to cryptocurrencies and trading might be able to understand better using a more simplistic approach (both ETH and BTC are digital assets, and thus, barter transaction would be more appropriate). In a BTC/USD pair, it’s a lot easier to grasp since we’re talking here of a digital asset and a real-world currency (fiat). Also, in a trading pair, a currency can increase or decrease in value relative to its pair – much like Forex in a sense. In an ETH/BTC pair, if more ETH orders are being filled and greater quantities are sold at a higher price, it will be valued higher in BTC, and vice versa. In the grand scheme of things, a currency’s value is summed up based on how it performed across all online exchanges where it’s listed. (See https://coinmarketcap.com/ for a list of all exchanges.)

 

Bid/Ask  – Bids specifies the price traders are willing to pay on a trading pair for a given quantity of cryptocurrency. Asks, on the other hand, specifies the price traders are willing to sell their cryptocurrencies for. Bids and asks are usually shown in graphical form in order books as the “bid and ask wall” juxtaposed against each other, often resembling a valley – also called “market depth.” The lowest point is where traders agree on a certain price. Orders placed somewhere near the current price (“market orders”) are often filled almost immediately, while those placed further away (“limit orders”) may take some time. Traders may cancel their orders and move them elsewhere if it takes them too long, or if they want to take advantage of a major price action days or weeks ahead.

 

Bid-Ask Spread – A gap formed when both sides of the market don’t agree on a common price and no orders are being filled. It is the difference between the lowest bid and ask price on a trading pair. For instance, a trader wants 0.1 BTC for $1000, and another wants to sell his at $1,010. We have a price spread of $10. The bigger the difference, the wider the bid-ask spread. Too wide of a bid-ask spread will have an impact to a market’s liquidity.

 

Trading Volume – The total amount of cryptocurrency traded in the market at any given time. For instance, in a BTC/USD trading pair, the trading volume for an hour of trading could be $35,000,000, closing at $10,000 per BTC. They’re usually shown as multi-coloured or monochrome bars at the base of a price chart. In a multi-coloured price chart, green-coloured bars meant the closing price is higher than the previous one; for red-coloured bars, it’s the other way around. A dark-coloured bar meant the closing price is equal to the previous one. In most cryptocurrency exchanges, viewers can change the duration from a 1-minute, 5-minute, 30 mintue, 1-hour trading volume, and so on. Markets with high trading volumes are considered to have high levels of liquidity.

 

Price Chart – A graphical representation of the price actions with respect to time. Price charts reveal whether a currency’s value is on an uptrend (“bullish”), downtrend (“bearish”), or has undergone periods of stagnation, high volatility, parabolic moves (market bubble), and sell-offs. They can be shown in candlestick or line format. Candlestick charts also have a colour scheme (green for “bullish” and red for “bearish”) that matches the trading volume. Sometimes bearish candles will close at a higher position relative to the previous one resulting in colours which are opposite to the trading volume. In a line format, each point represent the closing prices. Viewers can also change the duration from a 1-minute, 5-minute, 30-minute, 1-hour price chart, and so on.

 

Circulating supply – The best approximation of the number of coins circulating in the market and in the general public’s hands (https://coinmarketcap.com/faq). In traditional exchanges, these are the total number of publicly traded stocks as opposed to locked-in stocks withheld by the company or shareholders. Circulating supply helps determine the total market value (market capitalization) of a cryptocurrency.

 

Maximum Supply – the total supply of cryptocurrency that will ever be produced. Most cryptocurrencies are deflationary in nature, i.e., they have a fixed supply. Bitcoin is set at 21 million BTC, while some premined coins such as Ripple has a maximum supply of 100 billion XRP, 55% of which is being held in escrow by the company.

 

Market Capitalization – The total market value of a cryptocurrency, determined by multiplying the circulating supply with the current market price of each coin or token. It’s the equivalent of a company’s total market value in a public exchange, which is also determined by multiplying the total number of outstanding shares with the market price of each share.