1. Trading a highly volatile asset like cryptocurrency requires a certain amount of skill. Choosing a strategy, understanding the full picture of trading and mastering technical and fundamental analysis are all practical means of gaining ongoing experience. (1) What is Fundamental Analysis Fundamental analysis (FA) is a way for investors to determine the "intrinsic value" of an asset or business. By examining a range of internal and external factors, an investor's primary objective is to determine whether an asset or business is overvalued or undervalued, and then develop a buying and selling strategy based on this information. Technical analysis can also provide valuable trading data, but its results vary from person to person. Technical analysis (TA) users believe that they can predict future price movements based on the past performance of an asset. They achieve their goal mainly by looking at K-charts and studying common indicators. (2) Problems with fundamental analysis of cryptocurrencies We cannot accurately assess cryptocurrency networks by looking at traditional business perspectives. Products such as Bitcoin (BTC), which are heavily decentralised, are closer to commodities. However, even with cryptocurrencies that are heavily centralised (such as those issued by organisations), traditional fundamental analysis (FA) metrics do not provide sufficient information. We should therefore turn our attention to other frameworks. The first step is to identify strong indicators. "Strong" means that the indicator is not easily manipulated. For example, Twitter followers or Telegram/Reddit users are not good indicators - after all, it is easy to create fake accounts or buy followers in social media. (3) Financial indicators Market capitalisation: Market capitalisation (or network value) is equal to the circulating supply multiplied by the current price. Market capitalisation essentially represents the hypothetical cost of purchasing each unit of cryptocurrency asset (provided there is no sliding spread). Market capitalisation itself is somewhat misleading. In theory, it is very easy to issue 10 million units of useless tokens. If one of these tokens is trading at a unit price of $1, the market capitalisation is as high as $10 million. This approach to valuation is clearly distorted. Without a strong value proposition, tokens simply cannot be widely accepted by the market. It should also be noted that there is no way to determine the actual amount of a particular cryptocurrency or token in circulation. Tokens can be destroyed, keys can be lost, and funds can be forgotten. In contrast, if one can sift through the tokens that are no longer in circulation, a rough estimate of the amount in circulation can be made. Even so, market capitalisation is a widely used indicator of network growth potential. Some cryptocurrency investors believe that "small cap" tokens have better growth potential than "large cap" tokens. Others believe that large-cap tokens have a stronger network effect and are more likely to succeed than small-cap tokens that are not yet well established. Liquidity and volume: Liquidity is a measure of how easy it is to buy and sell assets. Liquid assets can be easily sold at the desired trading price. A related concept is that of a liquid market, i.e. a market in which many offers and quotes compete fiercely (resulting in very small bid-ask spreads). In a illiquid market, we may not be able to sell an asset at a "fair" price. This means that there are currently no buyers willing to trade and there are only two options: reduce the asking price or wait for market liquidity to increase. Volume is an indicator that helps to determine liquidity. It can be measured in a number of ways and shows the value of transactions over a given period of time. Charts usually show daily volumes (in the primary currency unit or in US dollars). Familiarity with the concept of liquidity is useful for fundamental analysis. Ultimately, liquidity can be used as an indicator of the market's interest in a potential investment. Supply mechanism: The supply mechanism of a currency or token is a very interesting attribute from an investment perspective in the eyes of some people. Models such as the stock flow (S2F) ratio are indeed becoming increasingly popular with Bitcoin fans. The maximum supply, the circulating supply and the inflation rate can all be used as a basis for decision making. Over time, some tokens will reduce the production of new coins, further attracting investors who believe that demand for new tokens will outstrip supply. On the other hand, many investors believe that a strict cap on supply will actually do more harm than good in the long run. They fear that users will hoard tokens, preventing them from being used in circulation. Another critical voice argues that the rationing of rewards for early adopters is unbalanced; after all, only a stable inflation policy can protect the rights of new users. (4) On-chain metrics Number of transactions: The number of transactions is a good way to measure network activity. By graphically looking at volumes over a defined period of time (or using a moving average), you can get an idea of how activity has changed over time. However, it is important to note that caution should be exercised when referring to this indicator. As with active addresses, we cannot be sure if it is just the same people transferring money between wallets, resulting in a watered down number of on-chain activities. Transaction value: Please do not confuse this with the number of transactions, which represents the total value of transactions over a period of time. For example, if a total of 10 ethereum transactions worth $50 each are sent on the same day, the daily volume would be $500. The unit of measurement can be a fiat currency like USD or the protocol's native unit - Ether (ETH). Active Address: An active address is a blockchain address that has remained active for a specified time frame. There are many ways to calculate active addresses, and a common method is to count the number of senders and receivers of each transaction over a set period of time (e.g. days, weeks or months). Some methods track the entire time frame, meaning that the cumulative value over time is calculated. Paid fees: In contrast, the paid fees for some cryptocurrency assets are more telling, giving an indication of the demand for block space by users. We can think of this as auction bidding: users bid against each other to get their transactions into the block in time. The high bidder's transactions are confirmed (mined) first, and the low bidder has to keep waiting. This is a metric worth looking into for cryptocurrencies where issuance continues to decline on a scheduled basis. Mainstream proof-of-work (PoW)) blockchains will offer block rewards. Part of the block reward consists of a block allowance and a transaction fee. Block subsidies fall periodically (e.g. events such as the halving of Bitcoin). As the cost of mining increases over time and the block subsidy decreases, the increase in transaction fees is taken for granted. Otherwise, miners will exit the network due to operational losses, which will in turn affect the security of the blockchain. Hash rate and pledge amount: Today, blockchains use various consensus algorithms, each with an exclusive mechanism. These algorithms play an integral role in securing the network, and in-depth study of the relevant data can optimise the results of fundamental analysis. In proof-of-work cryptocurrencies, the hash rate is often used as a measure of whether the network is functioning properly. The higher the hash rate, the more difficult it is to launch a 51% attack. Attracted by the low overhead and high returns, miners are attracted to mining. Over time, the hash rate continues to rise. Conversely, if it is not profitable to secure the network, miners will go offline ("miner surrender"), causing the hash rate to fall. Factors that affect the total cost of mining include the current price of the asset, the number of transactions processed, and the fees paid. Of course, the direct costs of mining (electricity and computing power) are also key considerations. Pledge is another game theory related concept similar to proof-of-work (PoW) mining. However, the two mechanisms work on different principles. The basic idea of pledging is that users participate in block validation by pledging their asset holdings. Therefore, we can study the number of pledges in a given time period and determine the high level of investment interest. (5) Project indicators Whitepaper: It is highly recommended that you read the project whitepaper before investing. This technical document gives us an overview of the cryptocurrency project. A good quality whitepaper will clarify the objectives of the network and ideally also give us insight into the following: the technology used (is it open source?) , the use cases it aims to meet, the roadmap for upgrades and new features, and the plan for the availability and distribution of the currency or tokens. In addition to referencing this information, it would be useful to explore the project around it. What do others think? Are there any red flags? Are the goals realistic? Team: If there is a specific team behind a cryptocurrency network, the track record of its members can reveal whether the team has the necessary skills to carry out the project. Have the members previously been involved in successful investment projects in the industry? Is their expertise sufficient to achieve the stated objectives? Have they been involved in any dubious projects or scams? If there is no team, what is the status of the developer community? If the project has a public GitHub, check the number of contributors and activity. Tokens that continue to grow are definitely more attractive than tokens that haven't updated their repository in two years. Competitors: A detailed and authoritative whitepaper can give us an idea of the target use cases for a cryptocurrency asset. The important task at this stage is to clarify the project's competitors and the traditional infrastructure they seek to replace. Ideally, this information should be carefully and thoughtfully applied to fundamental analysis. Some assets may appear very attractive, but if measured against the same metrics as cryptocurrency-like assets, they are likely to reveal shortcomings compared to others. Token economics and initial distribution: Some projects create tokens with the aim of finding a solution to a problem. This does not mean that the project itself is not viable, just that the tokens associated with it may be useless. It is therefore important to be clear about the actual utility of the tokens. Questions that arise from this include whether this utility is widely recognised by the market and how valuable the market actually perceives it to be. Another important factor to consider in this respect is the way in which the funds are initially distributed: is it through an initial token offering (ICO) or an initial exchange offering (IEO), or is it earned by users mining? If the former, the whitepaper should spell out how much money the founders and team have retained and the amount of funds available to investors. If the latter, we can look for evidence of pre-mining (mining in the network before the asset is introduced) by the asset creator. Focusing on the way funds are allocated will give an idea of whether there is any risk. For example, if the vast majority of funds originate from only a very small number of individuals and organisations, we may conclude that these individuals and organisations will eventually manipulate the market and therefore determine that this investment is risky. 2. What has been described above is just the basics about cryptocurrencies, which relate to whether we can make money from them. In addition to increasing your income by scientific methods, cryptocurrencies are also about finding ways to save money. The handling fees are small, but they must not be ignored. I have calculated that with frequent transactions and long trading hours, the accumulation of fees can add up to more than 10,000 U a year. Next I will introduce a few common ways to reduce fees on large trading platforms. (1) Lowering Binance's fees Binance is currently the world's largest digital currency exchange, and you must sign up for Binance if you want to speculate on coins. The transaction fee is deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT. Example. You place an order for 10Ethereum at a price of USD3,452.55 per share. Transaction fee = 10Ethereum0.1% = 0.01Ethereum Or you place an order to sell 10Ethereum at 3,452.55 USDT per share. Transaction fee = (10Ethereum3,452.55USDT)*0.1% = 34.5255USDT What many people do not know is that the Binance transaction fee can also be reduced. If you want to reduce your Binance trading fees, you must register using the invitation link below or use the invitation code "Q022W7SC". https://accounts.binance.com/en/register?ref=Q022W7SC

(2) Reducing OKX fees OKX is a professional digital currency trading platform loved by many users, and its transaction fees can be reduced. Depending on the volume of transactions, OKX divides its users into two levels: normal and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset size. The different tiers determine the trading fees for the next trading day. When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level. First method: OKX has an official maximum saving of 20%. Use the link below to register with OKX and save 20% on fees. https://www.ouyi.business/join/BTC1ETH Second method: Open the OKX website and enter "BTC1ETH" in the "Invitation Code" on the registration page to see the cashback percentage: 20% at the bottom. Be sure to enter this invitation code, otherwise you can not get 20% cashback percentage. (3) Reduce FTX fees FTX is currently a very fast-growing, contract players more exchange, you must register FTX if you play the contract. if you want to reduce the FTX transaction fees, you must use the following invitation link to register. https://ftx.com/referrals#a=121031692 3, trading road is long, together with forward Want to know more about how to reduce the commission? telegram: btcethcool We have set up a community dedicated to the study of trading, add telegram friends to pull you into the community.

1. Trading a highly volatile asset like cryptocurrency requires a certain amount of skill. Choosing a strategy, understanding the full picture of trading and mastering technical and fundamental analysis are all practical means of gaining ongoing experience. (1) What is Fundamental Analysis Fundamental analysis (FA) is a way for investors to determine the "intrinsic value" of an asset or business. By examining a range of internal and external factors, an investor's primary objective is to determine whether an asset or business is overvalued or undervalued, and then develop a buying and selling strategy based on this information. Technical analysis can also provide valuable trading data, but its results vary from person to person. Technical analysis (TA) users believe that they can predict future price movements based on the past performance of an asset. They achieve their goal mainly by looking at K-charts and studying common indicators. (2) Problems with fundamental analysis of cryptocurrencies We cannot accurately assess cryptocurrency networks by looking at traditional business perspectives. Products such as Bitcoin (BTC), which are heavily decentralised, are closer to commodities. However, even with cryptocurrencies that are heavily centralised (such as those issued by organisations), traditional fundamental analysis (FA) metrics do not provide sufficient information. We should therefore turn our attention to other frameworks. The first step is to identify strong indicators. "Strong" means that the indicator is not easily manipulated. For example, Twitter followers or Telegram/Reddit users are not good indicators - after all, it is easy to create fake accounts or buy followers in social media. (3) Financial indicators Market capitalisation: Market capitalisation (or network value) is equal to the circulating supply multiplied by the current price. Market capitalisation essentially represents the hypothetical cost of purchasing each unit of cryptocurrency asset (provided there is no sliding spread). Market capitalisation itself is somewhat misleading. In theory, it is very easy to issue 10 million units of useless tokens. If one of these tokens is trading at a unit price of $1, the market capitalisation is as high as $10 million. This approach to valuation is clearly distorted. Without a strong value proposition, tokens simply cannot be widely accepted by the market. It should also be noted that there is no way to determine the actual amount of a particular cryptocurrency or token in circulation. Tokens can be destroyed, keys can be lost, and funds can be forgotten. In contrast, if one can sift through the tokens that are no longer in circulation, a rough estimate of the amount in circulation can be made. Even so, market capitalisation is a widely used indicator of network growth potential. Some cryptocurrency investors believe that "small cap" tokens have better growth potential than "large cap" tokens. Others believe that large-cap tokens have a stronger network effect and are more likely to succeed than small-cap tokens that are not yet well established. Liquidity and volume: Liquidity is a measure of how easy it is to buy and sell assets. Liquid assets can be easily sold at the desired trading price. A related concept is that of a liquid market, i.e. a market in which many offers and quotes compete fiercely (resulting in very small bid-ask spreads). In a illiquid market, we may not be able to sell an asset at a "fair" price. This means that there are currently no buyers willing to trade and there are only two options: reduce the asking price or wait for market liquidity to increase. Volume is an indicator that helps to determine liquidity. It can be measured in a number of ways and shows the value of transactions over a given period of time. Charts usually show daily volumes (in the primary currency unit or in US dollars). Familiarity with the concept of liquidity is useful for fundamental analysis. Ultimately, liquidity can be used as an indicator of the market's interest in a potential investment. Supply mechanism: The supply mechanism of a currency or token is a very interesting attribute from an investment perspective in the eyes of some people. Models such as the stock flow (S2F) ratio are indeed becoming increasingly popular with Bitcoin fans. The maximum supply, the circulating supply and the inflation rate can all be used as a basis for decision making. Over time, some tokens will reduce the production of new coins, further attracting investors who believe that demand for new tokens will outstrip supply. On the other hand, many investors believe that a strict cap on supply will actually do more harm than good in the long run. They fear that users will hoard tokens, preventing them from being used in circulation. Another critical voice argues that the rationing of rewards for early adopters is unbalanced; after all, only a stable inflation policy can protect the rights of new users. (4) On-chain metrics Number of transactions: The number of transactions is a good way to measure network activity. By graphically looking at volumes over a defined period of time (or using a moving average), you can get an idea of how activity has changed over time. However, it is important to note that caution should be exercised when referring to this indicator. As with active addresses, we cannot be sure if it is just the same people transferring money between wallets, resulting in a watered down number of on-chain activities. Transaction value: Please do not confuse this with the number of transactions, which represents the total value of transactions over a period of time. For example, if a total of 10 ethereum transactions worth $50 each are sent on the same day, the daily volume would be $500. The unit of measurement can be a fiat currency like USD or the protocol's native unit - Ether (ETH). Active Address: An active address is a blockchain address that has remained active for a specified time frame. There are many ways to calculate active addresses, and a common method is to count the number of senders and receivers of each transaction over a set period of time (e.g. days, weeks or months). Some methods track the entire time frame, meaning that the cumulative value over time is calculated. Paid fees: In contrast, the paid fees for some cryptocurrency assets are more telling, giving an indication of the demand for block space by users. We can think of this as auction bidding: users bid against each other to get their transactions into the block in time. The high bidder's transactions are confirmed (mined) first, and the low bidder has to keep waiting. This is a metric worth looking into for cryptocurrencies where issuance continues to decline on a scheduled basis. Mainstream proof-of-work (PoW)) blockchains will offer block rewards. Part of the block reward consists of a block allowance and a transaction fee. Block subsidies fall periodically (e.g. events such as the halving of Bitcoin). As the cost of mining increases over time and the block subsidy decreases, the increase in transaction fees is taken for granted. Otherwise, miners will exit the network due to operational losses, which will in turn affect the security of the blockchain. Hash rate and pledge amount: Today, blockchains use various consensus algorithms, each with an exclusive mechanism. These algorithms play an integral role in securing the network, and in-depth study of the relevant data can optimise the results of fundamental analysis. In proof-of-work cryptocurrencies, the hash rate is often used as a measure of whether the network is functioning properly. The higher the hash rate, the more difficult it is to launch a 51% attack. Attracted by the low overhead and high returns, miners are attracted to mining. Over time, the hash rate continues to rise. Conversely, if it is not profitable to secure the network, miners will go offline ("miner surrender"), causing the hash rate to fall. Factors that affect the total cost of mining include the current price of the asset, the number of transactions processed, and the fees paid. Of course, the direct costs of mining (electricity and computing power) are also key considerations. Pledge is another game theory related concept similar to proof-of-work (PoW) mining. However, the two mechanisms work on different principles. The basic idea of pledging is that users participate in block validation by pledging their asset holdings. Therefore, we can study the number of pledges in a given time period and determine the high level of investment interest. (5) Project indicators Whitepaper: It is highly recommended that you read the project whitepaper before investing. This technical document gives us an overview of the cryptocurrency project. A good quality whitepaper will clarify the objectives of the network and ideally also give us insight into the following: the technology used (is it open source?) , the use cases it aims to meet, the roadmap for upgrades and new features, and the plan for the availability and distribution of the currency or tokens. In addition to referencing this information, it would be useful to explore the project around it. What do others think? Are there any red flags? Are the goals realistic? Team: If there is a specific team behind a cryptocurrency network, the track record of its members can reveal whether the team has the necessary skills to carry out the project. Have the members previously been involved in successful investment projects in the industry? Is their expertise sufficient to achieve the stated objectives? Have they been involved in any dubious projects or scams? If there is no team, what is the status of the developer community? If the project has a public GitHub, check the number of contributors and activity. Tokens that continue to grow are definitely more attractive than tokens that haven't updated their repository in two years. Competitors: A detailed and authoritative whitepaper can give us an idea of the target use cases for a cryptocurrency asset. The important task at this stage is to clarify the project's competitors and the traditional infrastructure they seek to replace. Ideally, this information should be carefully and thoughtfully applied to fundamental analysis. Some assets may appear very attractive, but if measured against the same metrics as cryptocurrency-like assets, they are likely to reveal shortcomings compared to others. Token economics and initial distribution: Some projects create tokens with the aim of finding a solution to a problem. This does not mean that the project itself is not viable, just that the tokens associated with it may be useless. It is therefore important to be clear about the actual utility of the tokens. Questions that arise from this include whether this utility is widely recognised by the market and how valuable the market actually perceives it to be. Another important factor to consider in this respect is the way in which the funds are initially distributed: is it through an initial token offering (ICO) or an initial exchange offering (IEO), or is it earned by users mining? If the former, the whitepaper should spell out how much money the founders and team have retained and the amount of funds available to investors. If the latter, we can look for evidence of pre-mining (mining in the network before the asset is introduced) by the asset creator. Focusing on the way funds are allocated will give an idea of whether there is any risk. For example, if the vast majority of funds originate from only a very small number of individuals and organisations, we may conclude that these individuals and organisations will eventually manipulate the market and therefore determine that this investment is risky. 2. What has been described above is just the basics about cryptocurrencies, which relate to whether we can make money from them. In addition to increasing your income by scientific methods, cryptocurrencies are also about finding ways to save money. The handling fees are small, but they must not be ignored. I have calculated that with frequent transactions and long trading hours, the accumulation of fees can add up to more than 10,000 U a year. Next I will introduce a few common ways to reduce fees on large trading platforms. (1) Lowering Binance's fees Binance is currently the world's largest digital currency exchange, and you must sign up for Binance if you want to speculate on coins. The transaction fee is deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT. Example. You place an order for 10Ethereum at a price of USD3,452.55 per share. Transaction fee = 10Ethereum0.1% = 0.01Ethereum Or you place an order to sell 10Ethereum at 3,452.55 USDT per share. Transaction fee = (10Ethereum3,452.55USDT)*0.1% = 34.5255USDT What many people do not know is that the Binance transaction fee can also be reduced. If you want to reduce your Binance trading fees, you must register using the invitation link below or use the invitation code "Q022W7SC". https://accounts.binance.com/en/register?ref=Q022W7SC

(2) Reducing OKX fees OKX is a professional digital currency trading platform loved by many users, and its transaction fees can be reduced. Depending on the volume of transactions, OKX divides its users into two levels: normal and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset size. The different tiers determine the trading fees for the next trading day. When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level. First method: OKX has an official maximum saving of 20%. Use the link below to register with OKX and save 20% on fees. https://www.ouyi.business/join/BTC1ETH Second method: Open the OKX website and enter "BTC1ETH" in the "Invitation Code" on the registration page to see the cashback percentage: 20% at the bottom. Be sure to enter this invitation code, otherwise you can not get 20% cashback percentage. (3) Reduce FTX fees FTX is currently a very fast-growing, contract players more exchange, you must register FTX if you play the contract. if you want to reduce the FTX transaction fees, you must use the following invitation link to register. https://ftx.com/referrals#a=121031692 3, trading road is long, together with forward Want to know more about how to reduce the commission? telegram: btcethcool We have set up a community dedicated to the study of trading, add telegram friends to pull you into the community.