WEB3/ CRYPTO 🔥🔥 #SOSOVALUE MAXI/A CRYPTO TRADER. ACTIVE AND FOLLOWING 💯
Joined October 2024
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1.PRE-BITCOIN ERA (1980s-2008)
Early concepts of digital money emerged, with David Chaum inventing eCash in 1983, a cryptographic digital currency focused on privacy and anonymity.
Other notable developments include DigiCash, Bit Gold, and Hashcash, which laid the foundations.
HISTORY OF CRYPTOCURRENCY
The History Of Cryptocurrency Spans SEVERAL ERAS, EACH MARKED BY SIGNIFICANT INNOVATIONS AND DEVELOPMENTS.
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Basics of the current crypto market
The crypto market will dump on good news and pump on bad news. Start by accepting that. Why?
When there is bullish news all the gamblers go long.
When there is bearish news all the gamblers go short.
The exchanges that sell the gamblers their positions manipulate the price to liquidate these positions. This is how they make profits. Its a business. They make billions running their casinos.
Technicals: On bullish news traders go Long with leverage positions. The exchange will manipulate the price downward using market makers and liquidate these Long positions. When a Long position is liquidated it results in a market sell order. This pushes the price lower, triggering deeper Long positions causing a cascade effect to the downside. This effect leads to people panic selling further increasing the profits of the exchanges.
On bearish news traders go Short with leverage positions. The exchange will manipulate the price upward using market makers and liquidate these Short positions. When a Short position is liquidated it results in a market buy order. This pushes the price higher, triggering higher short positions, causing a cascade effect to the upside. This effect leads to people FOMO buying, further increasing the profits of the exchanges.
That's how the crypto market works until it doesn't.
✅MAJOR DEFI BLOCKCHAINS
Ethereum
BNB Chain
Polygon
Solana
Avalanche
Arbitrum / Optimism (Layer 2)
✅METRICS TO MONITOR DEFI GROWTH
Total Value Locked (TVL)
Number of active users and wallets
Transaction volume
Protocol revenue
BENEFITS OF DEFI
1. Global Access: Anyone with a wallet and internet can participate.
2. Transparency: Open-source code and on-chain data.
3. Composability: Protocols can build on and interact with each other ("money legos").
4. Censorship Resistance
✅RISKS IN DEFI
1. Smart Contract Vulnerabilities
2. Rug Pulls (malicious project creators)
3. Overcollateralization Risks
4. Impermanent Loss for liquidity providers
5. Regulatory uncertainty
E.Derivatives & Synthetic Assets
Examples: Synthetix, dYdX
Allow exposure to assets like stocks, gold, or fiat without owning them.
F. Insurance Protocols
Examples: Nexus Mutual, InsurAce
Provide coverage against smart contract failures or hacks.
D. Stablecoins
Examples: DAI, USDC, USDT
Pegged to fiat currencies to reduce volatility in DeFi transactions.
D. Yield Farming & Liquidity Mining
Users provide liquidity to protocols and earn rewards (tokens or fees).
Associated with high risk and high reward.
CORE COMPONENTS OF DEFI
A. Decentralized Exchanges (DEXs)
Examples: Uniswap, SushiSwap, PancakeSwap
Use automated market makers (AMMs) to enable peer-to-peer trading.
B. Lending & Borrowing Protocols
Examples: Aave, Compound, MakerDAO
Users can lend assets and earn interest
What is DeFi?
✅DEFINITION: A financial system built on blockchain networks (mainly Ethereum) that operates without traditional intermediaries (banks, brokers).
✅KEY FEATURES: Permissionless, open-source, interoperable, and transparent.
Decentralized Finance (DeFi) is one of the most transformative areas in the crypto space. Here's a detailed breakdown of the DeFi ecosystem, structured to help guide your research:
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10. ADOPTION OF CRYPTO IN EMERGING MARKETS
Explore how countries like Nigeria, Argentina, and the Philippines are using crypto for remittances, inflation hedging, and financial inclusion.
9. TOKENOMICS AND ECONOMIC MODELS
Study how different cryptocurrencies use supply models, incentives, inflation control, and staking to maintain value and utility.
8. ENVIRONMENTAL IMPACT OF CRYPTO MINING
Investigate the energy consumption of proof-of-work vs. proof-of-stake, green mining alternatives, and public perception.
7. CRYPTO SECURITY THREATS
Research common vulnerabilities like wallet hacks, rug pulls, smart contract exploits, and how to enhance crypto security for users and developers.
6. DEFI (DECENTRALIZED FINANCE) ECOSYSTEM
Dive into how DeFi works (e.g., lending, borrowing, yield farming, DEXs), and its risks, benefits, and future potential.
5. CRYPTO REGULATION ACROSS COUNTRIES
Compare how different jurisdictions (e.g., US, EU, Nigeria, UAE) are regulating or banning crypto — and the effect of these regulations on innovation and adoption.
4. CENTRAL BANK DIGITAL CURRENCIES (CBDCS)
Study how governments are developing digital versions of fiat currency, their impact on monetary policy, and how they compare to decentralized cryptocurrencies.