Ten Advanced Cryptocurrency Assets

Cryptocurrency is an encrypted data string that denotes a unit of currency, which is monitored and organized by a peer-to-peer network known as Blockchain.

Cryptocurrencies are decentralized, unlike Physical Money, i.e. cryptocurrencies are not issued by governments or other financial institutions.?

Cryptocurrencies are created through cryptographic algorithms which are maintained and confirmed in a process called?mining. Network of computers or specialized hardware such as application-specific integrated circuits (ASICs) validates the transactions.?

The most popular and known cryptocurrencies are Bitcoin, Ether, Litecoin, and Monero.?

?We will now see the 10 advanced crypto assets which you need to know.

1.?????Scalping?

Scalping is to crypto what day trading is to stock market investors. Scalping involves gathering of small but regular profits daily rather than waiting for a big payout on your crypto investment.?

Scalping is popular in cryptocurrency trading because the market is volatile and moves quickly. For Scalping, beginners will opt for Bitcoin, as it is less volatile and more stable.?

?2.?????High-Frequency Trading (HFT)

It’s a form of trading that leverages the power of advanced computer systems to transact large orders in a matter of seconds. These systems use programs with complex algorithms which are created by trading experts that analyze multiple markets and execute orders based on the present market conditions.?

?When a large institution or whale opens a large long or short position on a particular cryptocurrency, the price tends to follow the position’s side after the trade.

?Consider an example:

High-frequency trading (HFT) seeks to take the advantage of small price fluctuations to exploit the bid-ask spread. The bid-ask spread is the difference between the price at which you buy and the lowest price at which you’re able to sell.

When you buy a cryptocurrency like Bitcoin, you’re not paying the market price; rather, you’re hitting the asking price, which is higher than the market price. Conversely, if you sell Bitcoin, you’ll be paid the bid price, which is lower than the current market price.

3.?????Number Only Used Once (Nonce)?

A nonce is a single-use number which is used for specific cryptographic processes, In the context of cryptocurrency mining, it is a number added to a hashed or encrypted block in a blockchain that, when rehashed, meets the difficulty level restrictions. The nonce is the number that blockchain miners are solving for. When the solution is found, the blockchain miners are offered cryptocurrency in exchange.?

4.?????Hard Fork and Soft Fork?

In programming terms, a fork is an open-source code modification. In the crypto world, a hard fork defines a fundamental change in the blockchain system from older invalid versions to avoid confusion and errors. A soft fork denotes changes to the blockchain that also remain compatible with older versions. These are mostly related to adding a small function or cosmetic changes in the blockchain.?

5.?????Decentralized Exchanges (DEX )

It allows users to exchange coins and tokens by leveraging smart contracts and blockchain technologies without a centralized intermediary. This allows you as a crypto assets owner to maintain custody of your funds and private keys in the way that you decide which is best for your investment goals.?

?6.?????Average True Range (ATR)

It solves one of the biggest challenges facing crypto owners by helping them to measure volatility and assist in finding the right markets to maximize profits. ATR does not reflect buy or sell signals and is simply measures volatility for crypto trading in much the same way it is used for forex and stock trading. It provides information about how much an asset can move in a specific period.?

?7.?????Scalability Trilemma?

It refers to the limited capability of the Bitcoin network to handle large amounts of transaction data on its platform in a short period. It is related to the fact that records (blocks) in the Bitcoin blockchain are limited in size and frequency. The trilemma refers to a triangle with three main blockchain attributes at each point , which are:

• Decentralized:?Creating a blockchain system that does not rely on a central point of control.
• Scalable:?Ability for a blockchain system to handle an increasingly growing amount of transactions.
• Secure:?Ability of the blockchain system to operate as expected, defend itself from attacks, bugs, and other unforeseen issues

8.?????FUD?

FUD is an acronym for ‘fear, uncertainty, and doubt’ which are the underlying emotions that sway investors and traders. For crypto users, FUD refers to, when malicious individuals depreciate specific cryptocurrencies or even an entire crypto market for a quick buck by manipulating the FUD responses of genuine investors.?

9.?????Mempool?

A group of blockchain transactions, each of which is waiting to be added to a block is referred to as Mempool. It involves the validation and checking process of nodes before it is successfully added to a blockchain.?

10.?Tokenomics?

Move over economics, there’s now Tokenomics, refer as ‘token’ and ‘economics’ which means the study of digital assets, especially cryptocurrencies and their value. Tokenomics involves the study of creators of tokens, allocation and distribution methods, market capitalization, business models, legal status.