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Everything You Need To Know About Dai

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What Is Dai?

Dai is a cryptocurrency that you can use to make payments or transfer funds from anywhere in the world. It is free to use and does not require any special software or hardware. It is a digital currency where one Dai is equal to one dollar. It is a cryptocurrency that is backed by the Dai stable coin. You can buy or sell Dai and transfer it to other online wallets. Users can also create and manage Dai wallets online. It is powered by the Maker protocol and was created by the Maker foundation. They created the Dai stable coin in 2014 as the first digital asset on Ethereum.

A stable coin has a fixed value rather than one that fluctuates with market conditions. Dai is one of the most stable cryptocurrencies on the market. With the Dai price increasing so much, it’s a good time to get some Dai, but it can be a difficult market. Dai is a cryptocurrency that is part of the Maker project, a project that aims to create the first decentralized stable coin.

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Who Created Dai?

The creator of Dai is the Maker Foundation. The Maker Foundation was founded in 2014 by Rune Christensen, a developer who worked on the Ethereum project. The purpose of the Maker Foundation is to promote and support decentralized blockchain technologies and to educate the public about the benefits of these technologies. The Maker Foundation created the Dai cryptocurrency as the first coin on the Ethereum platform to be fully collateralized by Dai stable coins.

When Was Dai Launched?

Dai was launched on the 18th of December, 2017. It was the first stable coin to be launched on Ethereum and was created by Maker. The token was initially traded against the USD but has since expanded to a variety of other cryptocurrencies, including Bitcoin and Tether. This makes it one of the most liquid coins on the market.

How Does Dai Work?

Dai is a cryptocurrency that’s designed to be fast, scalable, and secure. The platform uses a hybridized consensus model that combines proof of work with a novel Byzantine fault tolerance (BFT) protocol. This hybridized model enables the Dai network to achieve consensus much faster than traditional proof-of-work models, which are currently limited to about twenty transactions per second. The BFT protocol helps the system achieve consensus even in the event of malicious behavior or unforeseen circumstances, allowing the system to continue operating as intended.

Dai is also the native digital currency of the Decentralized Autonomous Organization (DAO). The DAO is a collective of autonomous entities that collectively manage the financial affairs of the DAO. The DAO was created to provide a framework for autonomous organizations to be formed, governed, and operated. The Dai token is used to vote on proposals submitted by the community, pay for proposals submitted by team members, and compensate market makers who provide liquidity to the Dai Stable coin System.

Dai powers the decentralized exchange (DEX) on the 0x network. The basic idea is that users can trade tokens directly with one another without having to go through a centralized exchange. The 0x team has built a platform that allows for the creation of “smart contracts,” which are computer programs that allow for the trading of cryptocurrencies and other digital assets. The contracts are built using the ERC20 standard, which is an Ethereum blockchain standard for creating tokens.

How To Keep Your Dai Safe?

The DAI cryptocurrency is designed to be as safe as possible. Unfortunately, as with any new technology, there’s a risk of being hacked. Here’s how to keep your Dai safe. The most secure way to store your Dai is offline, in a metal physical wallet. There are also online vaults that store your Dai offline, like the ones offered by Dai Stash.

The safest way to store Dai is in a wallet that you control. To ensure the safety of your funds, it is best to use a hardware wallet. A hardware wallet is a small, physical device that is designed to securely store your cryptographic assets. You should not share your private keys with anyone. If a wallet address is compromised, Dai is still safe, but the attacker can use the keys to spend your Dai.

Is Dai a Good Investment?

Yes, Dai is a good investment. The project is open-source, so it’s free to review and verify. The developers have a good reputation in the crypto community.

There is also anecdotal evidence that can be used to support its value. For example, the team has recently announced a plan to create a decentralized exchange on top of Dai, which will make it easier to use the cryptocurrency. The idea is that there will be a fee for trading, but that the fees will be less than the cost of trading on centralized exchanges. These two points indicate that the team has a plan for Dai’s price to increase. It is now possible to purchase Dai through most major exchanges like ShapeShift.

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Everything You Need to Know About Binance USD

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binance usd coin

Binance USD (BUSD) is a fiat-backed stablecoin designed to address issues of accessibility, flexibility, and speed on the blockchain. A cryptocurrency exchange leader, BUSD, is currently the second-largest stablecoin on the blockchain by market cap.

This flexible cryptocurrency is stable, regulated, and can be swapped on multiple blockchains. Investors can use BUSD on the Ethereum chain, Binance Chain, and Binance Smart Chains.

What Is Binance USD?

Binance USD (BUSD) was created to be a safe investment for cryptocurrency investors looking to invest in a low-volatility stake. This cryptocurrency is pegged at the value of the US Dollar. The New York State Department of Financial Services regulates Paxos, the creators of this currency.

USD is a fiat-backed stablecoin backed by Paxos instead of a government. As a result, Paxos holds the equivalent of the total amount of BUSD in US dollars in its financial reserves. BUSD is a stablecoin that keeps pace with the price of the United States dollar.

When the price of the dollar rises or falls, the price of BUSD fluctuates as well. Paxos issues monthly audits to verify collateralization.

Key Features of BUSD

1. BUSD is regulated

2. Fiat-backed stablecoin backed by a reserve

3. 1:1 ratio price fluctuates with US Dollar

4. Operates on multiple blockchains

Who Created Binance USD?

Paxos and Binance created Binance USD.

When was Binance USD launched?

Binance USD (BUSD) was launched in September 2019 as a partnership between Paxos and Binance.

How Does Binance USD Work?

They first issued BUSD on the Ethereum blockchain as ERC-20 tokens. Binance USD is one of only three cryptocurrency tokens currently approved by Wall Street regulators. The New York-based financial company Paxos issues BUSD tokens.

Paxos collateralize BUSD tokens by holding equivalent dollar amounts in regulated US bank accounts. Paxos is also responsible for creating and burning BUSD tokens.

Paxos and Binance designed BUSD to be a low-volatility investment for crypto traders seeking highly liquid investments. Investors can easily convert their BUSD investment into fiat-backed currency during times of volatility.

How To Keep Your Binance USD Safe?

Cryptocurrency experts recommend taking security measures like using two-factor authorization (2FA) to manage online Binance USD accounts and wallets. Serious investors use Binance USD wallet software to store, protect, and manage investments. They do this by using public and private keys to store value.

Is Binance USD A Good Investment?

We do not provide investment advice. Cryptocurrency traders looking to invest in Binance USD should do their research on the history and performance of BUSD and choose the best options that fit their investing style and budget.

It’s important for investors to consider how much they can afford to lose on investments with downturns before committing to any investment. The creators of Binance USD designed BUSD as a low-volatility asset for crypto traders seeking high liquidity. This stablecoin’s goal is to remain stable and as close to the value of one dollar as possible. While its performance appears stable, this can change at any time.

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What are Candlesticks and How to Read Them

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what is a candlestick in stocks and crypto

A candlestick is a type of price chart used in technical analysis to forecast the future price direction of stocks, commodities, and cryptocurrencies. Each candlestick is a graphical representation of a price movement for a specific period. Four different price points are displayed on each candlestick. They include open, high, low, and close.

Candlesticks are one of the oldest forms of technical analysis. According to historical records, candlestick charting can be traced back to Japanese rice merchants during the 18th century. Most financial historians agree that Munehisa Homma was responsible for popularizing candlestick charting.

Candlestick formations are based on a strict set of rules which are universally accepted among all traders and investors. Let’s review a few of the most basic candlestick formations and patterns.

Candlestick Formations

A solid red candlestick is displayed if the opening price is above the closing price (Chart #7).

how to read candlesticks

A hollow candlestick is displayed if the closing price is above the opening price (Chart #8).

what is a candlestick

Bullish Candlestick Patterns

Big White Candle – The market opens near the low and closes near the high (Chart #9).

big white candlestick

Doji – The opening and closing price is virtually identical (Chart #10).

doji bullish candlestick

Hammer – A candlestick that consists of a small body near the daily high with a long lower tail (Chart #11).

hammer bullish candlestick

Bearish Candlestick Patterns

Big Red Candle – The market opens near the high and closes near the low (Chart #12).

big red bearish candlestick

Inverted Hammer – A red or white candlestick within an upside-down hammer position (Chart #13).

inverted hammer bearish candlestick

Shooting Star – A red or white candlestick with a small body, a long upper shadow combined with little or no upper tail (Chart #14).

shooting start bearish candlestick

Brief Summary of Candlesticks

  • A candlestick is a type of price chart used in technical analysis.
  • Each candlestick represents price movement for a specific period of time.
  • Four different price points are displayed on each candlestick.
  • The price points include open, high, low, and close.
  • Candlesticks are one of the oldest forms of technical analysis.
  • Candlestick charting was first used by Japanese rice merchants during the 18th century.
  • Munehisa Homma was responsible for popularizing candlestick charting.
  • Candlestick formations are based on a strict set of rules.
  • These rules are universally accepted among all traders and investors.
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What Is an IEO?

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initial exchange offering

An Initial Exchange Offering (IEO) is a type of token sale administered by a cryptocurrency exchange. The entire process is controlled and managed by the exchange on behalf of the crypto company. Both parties have a vested interest in the success of the IEO. Neither party receives a payout unless investors purchase the token through the participating exchange. Therefore, it’s not uncommon for the exchange and the token issuer to join forces to help with marketing, promotions, and advertising.

Before launching the IEO, the crypto exchange and token issuer sign an agreement outlining the payout structure. Typically, the token issuing company is required to pay a listing fee along with a percentage of tokens sold through the crypto exchange. The majority of IEO agreements stipulate that the new token must be listed on the exchange for a predetermined amount of time following the initial sale of the token.

Investors who participate in the IEO are required to open an account with the participating crypto exchange. Instead of sending money to the token issuer through a smart contract, the investor deposits funds into his/her crypto account. Funds are dispersed by the crypto exchange to the crypto company.

IEO Versus ICO

As you may recall from our ICO discussion, the first ICO was launched in 2013. However, the ICO explosion did not occur until 2017, followed by its peak in 2018. Without question, the chief complaint within the crypto community concerning ICOs was a large number of failures and outright scams. In fact, the failure rate approached 90% in 2018.

As we have discussed several times, the cryptocurrency community is incredibly innovative. This community is filled with some of the brightest minds in global finance. Not surprisingly, a small group of young men and women were quick to replace problematic ICOs with IEOs in early 2019. The first major crypto exchanges to join the IEO wave occurred in January 2019. IEO activity continues to flourish in 2020.

The main difference between IEO and ICO is the level of success. In a typical ICO, the crypto company received funding immediately upon issuance of the token. Investors had very little recourse once the tokens were dispersed. They were trapped in a vulnerable position. Sadly, many unscrupulous start-up firms basically disappeared upon receipt of the funds commonly known as a ‘rug pull’.

IEOs solve this problem by preventing the token issuer from receiving funds immediately upon the distribution of the tokens. As we discussed earlier, both parties work together to ensure the success of the project, which increases the likelihood of a rising token price.

Although IEOs have only been in existence for two years, the popularity of this new fund-raising method has increased substantially. The success rate of projects launched on IEO is much higher compared to ICOs. Most likely, this trend will continue.

IEO Regulatory Environment

As you may recall from our ICO discussion, crypto companies struggled to clear all of the regulatory hurdles to satisfy financial regulators. Unfortunately, IEO participants, are experiencing the same type of regulatory problems that plagued the ICO marketplace. This by and large means that regulators dissuade people from taking part in IEOs.

A positive to this is that IEOs are largely unregulated and don’t have to satisfy bureaucracy that can stifle innovative projects.

Financial regulators, particularly in the United States, claim that an initial exchange offering is similar to an initial coin offering, even though the token issuer is not directly involved in the sale of the token. An ongoing problem with regulation is whether or not any particular token counts as security and needs regulation, or whether they are utility tokens. Exchanges will typically avoid listing securities on an IEO as it means they have to submit to regulation.

To avoid the strict regulation requirements around securities, crypto exchanges may even opt not to offer tokens in countries like the United States where there is ambiguity about regulation. As long as the IEO is not soliciting in a particular country, registration is not required.

Due to the overwhelming success of IEOs, many of the world’s largest crypto exchanges are becoming heavily involved in IEOs by offering tokens on behalf of start-up companies. Most likely, this trend will continue.

Brief Summary of IEO

  • An initial Exchange Offering is a token sale administered by a crypto exchange.
  • The entire process is overseen by the crypto exchange.
  • Neither party receives a payout unless investors purchase the token.
  • The exchange and token issuer will often collaborate with marketing and advertising.
  • Both parties sign an agreement outlining the payout structure of the IEO.
  • The new token will be listed on the exchange for a predetermined time period.
  • Participating IEO investors are required to open an account with the exchange.
  • Investors pay for the token by depositing funds into their crypto account.
  • IEOs have proven to be safer than ICOs.
  • Many crypto exchanges are not participating in heavily regulated countries.
  • IEOs have become very popular in the crypto universe.
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