I get quite a lot of questions about #Bitcoin dominance ( $BTCD ).
So, I thought, why not make a short thread/guide on it, as it's a crucial thing to understand when you're into #crypto.
So, here goes. Please like/retweet if you enjoyed reading it/learned something!
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Bitcoin Dominance ( $BTCD ) is one of the most important tools for keeping an eye on the market. It helps you to maximize your #BTC holdings. But how does it work? How is the % share of BTC in the total Crypto market cap helpful for trading in the market?
What is Bitcoin Dominance?
In one line, BTCD is the % of share of Bitcoin in the total crypto market cap i.e.
Bitcoin Dominance is used to show the dominance and strength of BTC as compared to the other crypto in the market.
Why is Bitcoin Dominance Important?
BTCD is important because it shows the confidence investors have in altcoins.
Example:
If BTCD is less than 35%, investors become much more comfortable investing in altcoins which is a high risk.
This usually happens in a Bullish market where high risk - high reward investments like #altcoins become much more appealing for buying as the markets are safer.
However, during a bear market we see the BTCD rising.
As confidence in altcoins is lost, people start moving to #BTC as it is a much safer alternative for them.
This movement of Bitcoin Dominance during different market time periods shows how the crypto markets are going to behave.
It shows if we are in a healthy #altcoin market or a bear market.
“BTCD goes up during bull runs."
"BTCD goes down during uncertain bear markets”
How to trade Bitcoin Dominance (BTCD)?
BTCD is a little tricky at first for trading. However, it has some very specific rules.
We can start by seeing the BTCD chart and identifying the trend it is following.
If we are seeing a bearish trend on the Bitcoin Dominance(BTCD) chart and the macro factors (overall market sentiments) are positive then it is a signal of an alt season.
It generally makes more sense to get into good alts as they are getting ready for a rally.
If we are seeing a bullish trend on the Bitcoin Dominance( BTCD) and the macro factors are negative(overall market sentiments), it’s best to be in BTC instead of altcoins as a major dump is on the horizon.
Here is a quick cheat sheet for trading according to the $BTCD in other cases.
Crypto has been trending over the last decade, with several technological advancements.
Historically, crypto projects have used airdrops as a marketing tactic to encourage existing or potential users on their platform.
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As part of an initial offering or as compensation for creating awareness about a particular project, new projects may airdrop cryptocurrency into wallets of different users on their platform.
There are many kinds of airdrops, and every cryptocurrency project has different specifications.
But the common objective of airdrops is to raise public awareness and enthusiasm about a particular project.
The #Ethereum developer (Vitalik) has successfully completed another test merge!
We've been waiting for two years now, but it's coming soon! It's so close that you can taste your stakes. That's why it's Proof of Stake. 🤣
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The Merge will be one of the biggest events ever for Ethereum. It is a move from Proof of Work to Proof of Stake. That means faster transactions with less energy consumption.
No more miners! Miners now help with transaction validation and validation.
In return, they receive #ETH that helps keep the network up and running and increases sales pressure.
No mining = low daily sales pressure = higher prices? A step closer to future scalability.
Wednesday's test was another practice test before the big test.
The idea of @Polkadot was created in 2017, by Dr Gavin Wood (@gavofyork) just after inventing the #Ethereum Virtual Machine (EVM) and the infamous 'Solidity' programming language.
@Polkadot is the first "Layer 0" #blockchain that can connect multiple "Layer 1" blockchains to itself. They aim to create a unified network of blockchains that can be built and connected.
If you decide you want to learn and work in #Crypto to gain experience and in the near future make money by doing something crypto related, then we want to hear FROM YOU!
ℹ️ Apply by contacting us at:
contact@Altcryptotalk.com
More info 🔽
I am (together with my platform @AltCryptoTalk) looking for motivated people/volunteers who want to build a name for themselves and help me make our platform the greatest!
If you are:
- 👨🎨Illustrator/Graphic Designer
- 📰Writer/Content writer
- 🔎News researcher/creator
- 💻Any kind of Developer
- 📊TA advanced users, charting etc.
- 🕵️Researcher
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- 🎤Social Media Manager/Experienced user
- 🪄 Anything else
Are you new to crypto derivatives trading, have no clue how to start with margin trading, how to use leverage or how to long/short a trade?
Then read my Definitive Guide to trading on Margin below! 👇
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2. Before we start,do note that trading with leverage/margin can be EXTREMELY risky. It allows you to earn money QUICKLY, but allows you to lose money even more QUICKLY.
This guide will explain the most important things about leverage trading, but is no guarantee to make money.
3. Let’s start with the most basic; where do we trade with leverage?
Right now, I’m using Bybit. The reason for this is that it’s got an extremely easy and good looking UI which makes it easy to use.
There’s also no KYC needed, and you’re able to trade with 100x leverage.