Educational Post
What is Layer 2?
Layer 2 refers to a secondary framework or protocol that is built on top of an existing blockchain system. The main goal of these protocols is to solve the transaction speed and scaling difficulties that are being faced by the major cryptocurrency networks.
For instance, Bitcoin and Ethereum are still not able to process thousands of transactions per second (TPS), and this is certainly detrimental to their long-term growth. There is a need for higher throughput before these networks can be effectively adopted and used on a wider scale.
In this context, the term “layer 2” refers to the multiple solutions being proposed to the blockchain scalability problem. Two major examples of layer 2 solutions are the Bitcoin Lightning Network and the Ethereum Plasma. Despite having their own working mechanisms and particularities, both solutions are striving to provide increased throughput to blockchain systems.
Specifically, the Lightning Network is based on state channels, which are basically attached channels that perform blockchain operations and report them to the main chain. State channels are mainly used as payment channels. On the other hand, the Plasma framework consists of sidechains, which are essentially small blockchains arranged in a tree-like structure.
In a broader sense, layer 2 protocols create a secondary framework, where blockchain transactions and processes can take place independently of the layer 1 (main chain). For this reason, these techniques may also be referred to as “off-chain” scaling solutions.
One of the main advantages of using off-chain solutions is that the main chain doesn’t need to go through any structural change because the second layer is added as an extra layer. As such, layer 2 solutions have the potential to achieve high throughput without sacrificing network security.
What is Layer 2?
Layer 2 refers to a secondary framework or protocol that is built on top of an existing blockchain system. The main goal of these protocols is to solve the transaction speed and scaling difficulties that are being faced by the major cryptocurrency networks.
For instance, Bitcoin and Ethereum are still not able to process thousands of transactions per second (TPS), and this is certainly detrimental to their long-term growth. There is a need for higher throughput before these networks can be effectively adopted and used on a wider scale.
In this context, the term “layer 2” refers to the multiple solutions being proposed to the blockchain scalability problem. Two major examples of layer 2 solutions are the Bitcoin Lightning Network and the Ethereum Plasma. Despite having their own working mechanisms and particularities, both solutions are striving to provide increased throughput to blockchain systems.
Specifically, the Lightning Network is based on state channels, which are basically attached channels that perform blockchain operations and report them to the main chain. State channels are mainly used as payment channels. On the other hand, the Plasma framework consists of sidechains, which are essentially small blockchains arranged in a tree-like structure.
In a broader sense, layer 2 protocols create a secondary framework, where blockchain transactions and processes can take place independently of the layer 1 (main chain). For this reason, these techniques may also be referred to as “off-chain” scaling solutions.
One of the main advantages of using off-chain solutions is that the main chain doesn’t need to go through any structural change because the second layer is added as an extra layer. As such, layer 2 solutions have the potential to achieve high throughput without sacrificing network security.
Crypto VIP Signal
Which coin analysis you want?
API3 analysis:
Price recovered from the support area after the drop. You can open a long position if the price falls to the support level. We may see some accumulation before the next move.
Support Area: $1.50-$1.55
Resistance Area: $1.95-$2.15
Price recovered from the support area after the drop. You can open a long position if the price falls to the support level. We may see some accumulation before the next move.
Support Area: $1.50-$1.55
Resistance Area: $1.95-$2.15
Crypto VIP Signal
Bitcoin has once again been rejected from the resistance area and is unable to break through it. There is significant selling pressure at this resistance level, and we are likely to see a large move once this resistance is overcome.
Bitcoin has broken below the support zone and has retested it multiple times but has not yet been able to reclaim this level. The price needs to reclaim the level; otherwise, we may see further downward movement. The support level is at $95,000.
Crypto VIP Signal
UNI bounced after testing the support area, and we hope you opened a long position as suggested. The long position is now more than 19% in profit from our entry. The support and resistance levels remain the same.
The UNI trade is performing well, with a peak profit of over 145% from our entry point. If you missed the earlier opportunity, you can consider opening a long position at the support area. We might experience some sideways movement around this support level before the next significant move occurs.
Support Area: $11.70-$12.90
Support Area: $11.70-$12.90
Analyzing recent corrections since October 2023, the number of Bitcoin held at a loss ranged between 3.9M and 6.1M BTC before the market found stability.
Currently, around 3M BTC are in loss, indicating a less severe level of market stress compared to past corrections. This could suggest a stronger resilience in the market or a possible shift in investor behavior.
Currently, around 3M BTC are in loss, indicating a less severe level of market stress compared to past corrections. This could suggest a stronger resilience in the market or a possible shift in investor behavior.
Educational Post
What is a Market Order?
A market order is an order to instantly buy or sell at the best available price. It is executed based on the limit orders that are already located in the order book, meaning that market orders depend on market liquidity to be completed.
Unlike limit orders that are placed on the order book and wait for someone to execute them, market orders are executed immediately at the current market price. Therefore, when completing a market order in the Binance exchange, you will be paying the trading fees as a market taker.
Since market orders are executed right away, your market order will match the best limit order available on the order book. In other words, if you create a market buy order, it will match the best limit sell orders at the current price. However, if the cheapest limit sell order available is not sufficient to fill your entire market order, your order will automatically match the following limit sell orders until it is finally completed. This process is called slippage and is the reason why you pay higher prices and higher fees with market orders when compared to limit orders.
Market orders are convenient in situations where getting your order quickly filled is more important than getting a certain price. This means that you should only use market orders if you are in a hurry and willing to pay higher prices and fees (caused by the slippage). In other terms, market orders should only be used if you want to buy or sell as quickly as possible, regardless of price and fees.
What is a Market Order?
A market order is an order to instantly buy or sell at the best available price. It is executed based on the limit orders that are already located in the order book, meaning that market orders depend on market liquidity to be completed.
Unlike limit orders that are placed on the order book and wait for someone to execute them, market orders are executed immediately at the current market price. Therefore, when completing a market order in the Binance exchange, you will be paying the trading fees as a market taker.
Since market orders are executed right away, your market order will match the best limit order available on the order book. In other words, if you create a market buy order, it will match the best limit sell orders at the current price. However, if the cheapest limit sell order available is not sufficient to fill your entire market order, your order will automatically match the following limit sell orders until it is finally completed. This process is called slippage and is the reason why you pay higher prices and higher fees with market orders when compared to limit orders.
Market orders are convenient in situations where getting your order quickly filled is more important than getting a certain price. This means that you should only use market orders if you are in a hurry and willing to pay higher prices and fees (caused by the slippage). In other terms, market orders should only be used if you want to buy or sell as quickly as possible, regardless of price and fees.
Crypto VIP Signal
Which coin analysis you want?
IDEX analysis:
Price is currently fluctuating between the support and resistance areas. This is a no-trade zone, and it is better to wait for a test of the support area or a breakout above the resistance area.
Support Area: $0.0505-$0.0538
Resistance Area: $0.0697-$0.0737
Price is currently fluctuating between the support and resistance areas. This is a no-trade zone, and it is better to wait for a test of the support area or a breakout above the resistance area.
Support Area: $0.0505-$0.0538
Resistance Area: $0.0697-$0.0737
Crypto VIP Signal
Bitcoin has broken below the support zone and has retested it multiple times but has not yet been able to reclaim this level. The price needs to reclaim the level; otherwise, we may see further downward movement. The support level is at $95,000.
Bitcoin has been rejected again after the retest and continues its downward movement. The $95,000 support has been broken, and we may see a drop towards the major liquidity zone of $92,000-$93,000.
Crypto VIP Signal
Which coin analysis you want?
FUN analysis:
Price is now in the no trade zone and better to wait for better opportunity. We are expecting a test of the support area before the next move.
Support Area: $0.00390-$0.0042
Resistance Area: $0.00597-$0.0063
Price is now in the no trade zone and better to wait for better opportunity. We are expecting a test of the support area before the next move.
Support Area: $0.00390-$0.0042
Resistance Area: $0.00597-$0.0063
Exploring Uniswap and PancakeSwap_ A Beginner's Guide.docx
8.8 KB
EDUCATIONAL POST
Exploring Uniswap and PancakeSwap: A Beginner's Guide
Exploring Uniswap and PancakeSwap: A Beginner's Guide
Crypto VIP Signal
Bitcoin has been rejected again after the retest and continues its downward movement. The $95,000 support has been broken, and we may see a drop towards the major liquidity zone of $92,000-$93,000.
Bitcoin is currently moving sideways, and not much is expected until the New Year holidays. You can also enjoy some quality time with your friends and family.