BTCWhat is OKX? Team Background and History (OKX's most authoritative mystery solving)
1. OKX was founded in 2017 as a cryptocurrency trading services company. The company has since amassed over 20 million users and expanded its digital asset investment portfolio, which includes OKX Earn, a tool for earning passive cryptocurrency income, an NFT trading platform and decentralised app discovery centre, and the recently launched MetaX, OKX's new decentralised model that offers a cross-chain dashboard and self-hosted Web 3.0 wallet for storing (digital assets such as NFT). Wit...
BTCWhat is pledging
You can think of an equity pledge as a less resource intensive alternative to mining. This option involves placing holdings into cryptocurrency wallets to provide security and operational support for the blockchain network. Simply put, equity pledging is the act of locking up cryptocurrencies for rewards. (1) What is a Pledge of Interest A pledge of interest is a process by which holders of a particular token can receive a reward. Pledges of interest originate from a proof-of-interest mechani...
BTCHow to play the perpetual contract (the most authoritative) translation
A perpetual contract is an "innovative" futures contract, pioneered by BitMEX. Traditional contracts have an expiration date, while perpetual contracts do not have a delivery date and can be held forever, so they are called perpetual contracts. (1) What is a perpetual contract? A perpetual contract is an innovative financial derivative that is based on a delivery contract, but has many differences from the previous one. A perpetual contract is similar to a secured asset market in that its pri...
BTCWhat is OKX? Team Background and History (OKX's most authoritative mystery solving)
1. OKX was founded in 2017 as a cryptocurrency trading services company. The company has since amassed over 20 million users and expanded its digital asset investment portfolio, which includes OKX Earn, a tool for earning passive cryptocurrency income, an NFT trading platform and decentralised app discovery centre, and the recently launched MetaX, OKX's new decentralised model that offers a cross-chain dashboard and self-hosted Web 3.0 wallet for storing (digital assets such as NFT). Wit...
BTCWhat is pledging
You can think of an equity pledge as a less resource intensive alternative to mining. This option involves placing holdings into cryptocurrency wallets to provide security and operational support for the blockchain network. Simply put, equity pledging is the act of locking up cryptocurrencies for rewards. (1) What is a Pledge of Interest A pledge of interest is a process by which holders of a particular token can receive a reward. Pledges of interest originate from a proof-of-interest mechani...
BTCHow to play the perpetual contract (the most authoritative) translation
A perpetual contract is an "innovative" futures contract, pioneered by BitMEX. Traditional contracts have an expiration date, while perpetual contracts do not have a delivery date and can be held forever, so they are called perpetual contracts. (1) What is a perpetual contract? A perpetual contract is an innovative financial derivative that is based on a delivery contract, but has many differences from the previous one. A perpetual contract is similar to a secured asset market in that its pri...
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If you have been involved in DeFi projects, you will have heard of this term. What happens when there is an impermanent loss? It's when the price of your tokens changes compared to when you put them in the liquidity pool. The greater the change, the greater the loss. (1) What is Perverse Loss Essentially, an impermanent loss is a temporary loss/non-permanent loss of funds that occurs when liquidity is provided. It is called a non-permanent loss because as soon as the relative price of the tokens in the AMM returns to its initial state, then the loss disappears. However, this rarely happens. Usually, impermanent losses become permanent, swallowing up your transaction fee income or even leading to negative returns. So why do liquidity providers still provide liquidity when they are exposed to the risk of impermanent losses? That's because the impermanent losses can still be offset by transaction fees. In fact, in the case of Uniswap, for example, even though there is a risk of an unpredictable loss, users can still make a profit through transaction fees. Uniswap charges a fee of 0.3% per transaction, which is then allocated directly to the liquidity provider. If a liquidity is traded in large volumes, the user can still profit from the provision of liquidity even if it is exposed to significant unpredictable losses. Of course, this depends on the agreement, the particular liquidity pool, the assets deposited and even the market environment. (2) How impermanent losses arise Let us use the following example to explain how the impermanent loss of a liquidity provider arises. Alice deposits 1 ETH and 100 DAI in the liquidity pool. the token pairs deposited must have equal value under a specific automated market maker (AMM) mechanism. This means that when a deposit is made, the price of 1 ETH = 100 DAI. this also means that Alice's deposit is worth $200 at the time. In addition, the liquidity pool has a total of 10 ETH and 1,000 DAI, both of which are funded by other liquidity pool providers like Alice. Alice therefore has a 10% share of the liquidity pool with a total liquidity of $10,000. Suppose the price of ETH rises to 400 DAI. in this case, arbitrage traders will add DAI to the pool and remove ETH from it until the ratio reflects the current price. remember, AMM does not have an order book. The price of liquid pool assets is determined by the ratio in their pool. The liquidity of the pool remains the same (10,000), but the ratio of assets in the pool changes. If the current price of ETH is 400 USDT, that means that the ratio of ETH and USDT in the pool has changed. As a result of the arbitrage trader operation, there is now 5 ETH and 2,000 DAI in the liquidity pool. And Alice has decided to withdraw the funds. As we mentioned earlier, she is entitled to a 10% share of the pool. As a result, she gets 0.5 ETH and 200 USDT for a total of 400 USDT. Since she deposited 200 USD worth of tokens, she has made a significant profit, right? Wait, what would have happened if she had been holding 1 ETH and 100 DAI? She would have made $500. In fact, Alice would have made more profit if she had held it all along instead of putting it in a liquid pool. This is what we call an impermanent loss. In this case, Alice's loss is not too large because she started with a relatively small deposit. However, please bear in mind that a stochastic loss can result in a significant loss (even including most of the initial deposit). That said, the example provided above for Alice is completely without taking into account the transaction fees she earns by providing liquidity. In many cases, the fees earned can offset the losses, making the provision of liquidity still profitable. Even so, it is important to understand the concept of a constant loss before providing liquidity to a DeFi agreement. (3) How to calculate an Impermanent Loss The term "impermanent loss" was first coined by Pintail, a Medium account that shares a method for calculating losses for liquidity providers. With the exponential growth of DeFi, there are now several platforms that allow liquidity providers to calculate the possible impermanent loss of their assets. All they have to do is enter the number of tokens they are willing to deposit and get an estimate of the impermanent loss. For example this one: https://mycointool.com/en/ImpermanentLoss (4) How to avoid anomalous losses While there is no way to avoid an impermanent loss, there are still measures that liquidity providers can take to mitigate the risk. (i) Use stable currency pairs. Providing liquidity in a stablecoin pair is the best option for avoiding impermanent losses. As stablecoins do not fluctuate much in value, they have fewer opportunities for arbitrage, thereby reducing risk. At the same time, however, liquidity providers holding stablecoins do not enjoy the upside of the cryptocurrency market. ② Avoid unstable currency pairs. Rather than choosing cryptocurrencies with a history of instability or volatility, pick pairs that do not expose liquidity to unpredictable losses. Search the market thoroughly. Cryptocurrency markets are highly volatile. Therefore, it is normal for the value of deposited assets to rise or fall. However, liquidity providers must know when to withdraw their cryptocurrencies before the price deviates too far from the initial rate.
The content introduced above is only about the basics of cryptocurrency, which is related to whether we can make money through cryptocurrency. Cryptocurrencies make money not only by scientific methods to increase income, but also by 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 researching trading, add telegram friends to pull you into the community.
If you have been involved in DeFi projects, you will have heard of this term. What happens when there is an impermanent loss? It's when the price of your tokens changes compared to when you put them in the liquidity pool. The greater the change, the greater the loss. (1) What is Perverse Loss Essentially, an impermanent loss is a temporary loss/non-permanent loss of funds that occurs when liquidity is provided. It is called a non-permanent loss because as soon as the relative price of the tokens in the AMM returns to its initial state, then the loss disappears. However, this rarely happens. Usually, impermanent losses become permanent, swallowing up your transaction fee income or even leading to negative returns. So why do liquidity providers still provide liquidity when they are exposed to the risk of impermanent losses? That's because the impermanent losses can still be offset by transaction fees. In fact, in the case of Uniswap, for example, even though there is a risk of an unpredictable loss, users can still make a profit through transaction fees. Uniswap charges a fee of 0.3% per transaction, which is then allocated directly to the liquidity provider. If a liquidity is traded in large volumes, the user can still profit from the provision of liquidity even if it is exposed to significant unpredictable losses. Of course, this depends on the agreement, the particular liquidity pool, the assets deposited and even the market environment. (2) How impermanent losses arise Let us use the following example to explain how the impermanent loss of a liquidity provider arises. Alice deposits 1 ETH and 100 DAI in the liquidity pool. the token pairs deposited must have equal value under a specific automated market maker (AMM) mechanism. This means that when a deposit is made, the price of 1 ETH = 100 DAI. this also means that Alice's deposit is worth $200 at the time. In addition, the liquidity pool has a total of 10 ETH and 1,000 DAI, both of which are funded by other liquidity pool providers like Alice. Alice therefore has a 10% share of the liquidity pool with a total liquidity of $10,000. Suppose the price of ETH rises to 400 DAI. in this case, arbitrage traders will add DAI to the pool and remove ETH from it until the ratio reflects the current price. remember, AMM does not have an order book. The price of liquid pool assets is determined by the ratio in their pool. The liquidity of the pool remains the same (10,000), but the ratio of assets in the pool changes. If the current price of ETH is 400 USDT, that means that the ratio of ETH and USDT in the pool has changed. As a result of the arbitrage trader operation, there is now 5 ETH and 2,000 DAI in the liquidity pool. And Alice has decided to withdraw the funds. As we mentioned earlier, she is entitled to a 10% share of the pool. As a result, she gets 0.5 ETH and 200 USDT for a total of 400 USDT. Since she deposited 200 USD worth of tokens, she has made a significant profit, right? Wait, what would have happened if she had been holding 1 ETH and 100 DAI? She would have made $500. In fact, Alice would have made more profit if she had held it all along instead of putting it in a liquid pool. This is what we call an impermanent loss. In this case, Alice's loss is not too large because she started with a relatively small deposit. However, please bear in mind that a stochastic loss can result in a significant loss (even including most of the initial deposit). That said, the example provided above for Alice is completely without taking into account the transaction fees she earns by providing liquidity. In many cases, the fees earned can offset the losses, making the provision of liquidity still profitable. Even so, it is important to understand the concept of a constant loss before providing liquidity to a DeFi agreement. (3) How to calculate an Impermanent Loss The term "impermanent loss" was first coined by Pintail, a Medium account that shares a method for calculating losses for liquidity providers. With the exponential growth of DeFi, there are now several platforms that allow liquidity providers to calculate the possible impermanent loss of their assets. All they have to do is enter the number of tokens they are willing to deposit and get an estimate of the impermanent loss. For example this one: https://mycointool.com/en/ImpermanentLoss (4) How to avoid anomalous losses While there is no way to avoid an impermanent loss, there are still measures that liquidity providers can take to mitigate the risk. (i) Use stable currency pairs. Providing liquidity in a stablecoin pair is the best option for avoiding impermanent losses. As stablecoins do not fluctuate much in value, they have fewer opportunities for arbitrage, thereby reducing risk. At the same time, however, liquidity providers holding stablecoins do not enjoy the upside of the cryptocurrency market. ② Avoid unstable currency pairs. Rather than choosing cryptocurrencies with a history of instability or volatility, pick pairs that do not expose liquidity to unpredictable losses. Search the market thoroughly. Cryptocurrency markets are highly volatile. Therefore, it is normal for the value of deposited assets to rise or fall. However, liquidity providers must know when to withdraw their cryptocurrencies before the price deviates too far from the initial rate.
The content introduced above is only about the basics of cryptocurrency, which is related to whether we can make money through cryptocurrency. Cryptocurrencies make money not only by scientific methods to increase income, but also by 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 researching trading, add telegram friends to pull you into the community.
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