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TWAP Orders in Crypto: What It Is and How to Use It on Bitget

If you're trading large amounts of cryptocurrency, you’ve probably worried about how your order might affect the market. That’s where TWAP crypto strategies come in. In this article, you’ll learn what TWAP means, how it works, why traders use it, and how you can use TWAP orders on Bitget, one of the world’s top futures trading platforms. What Is TWAP in Crypto? TWAP stands for Time-Weighted Average Price. It’s a trading strategy that helps traders buy or sell a large amount of crypto without causing big changes in the market price. Instead of placing one huge order all at once, TWAP breaks the big order into smaller trades. These smaller trades are then executed automatically over a set period of time, like every 10 seconds or every minute. Think of it like this: instead of jumping into a pool all at once and making a big splash, you’re slowly dipping in one step at a time. That way, you don’t shock the market or attract too much attention. Why Use a TWAP Crypto Strategy? TWAP crypto orders help traders reduce “slippage” — a problem where the market moves against you because of your own big order. They also help traders: ● Stay invisible: Large orders can attract bots or cause others to react. ● Get better prices: By spreading the trade out over time, you average out the price. ● Avoid volatility: If prices are jumping up and down, TWAP gives a fair average. ● Automate trades: No need to sit at the screen. TWAP works on autopilot. TWAP is especially useful in futures trading, where every price point counts. And Bitget, a top crypto futures platform, offers a built-in TWAP feature that’s easy to use for beginners and pros alike. How Does TWAP Work in Crypto? Let’s break down how a TWAP crypto order actually works, step by step. 1. Order Splitting You choose the total amount of crypto you want to buy or sell. The platform then splits it into small chunks, called sub-orders. 2. Time Distribution You pick how long the order should run — from 5 minutes up to 24 hours (or more, depending on the platform). The sub-orders are placed at regular time intervals like every 5, 10, or 30 seconds. 3. Market Price Execution Each smaller order is filled at the best market price at the time. This helps you avoid buying too high or selling too low all at once. 4. Completion or Expiry The strategy stops when: ● All sub-orders are filled, OR ● The time you set runs out If the market moves too far or your funds run out, the strategy may pause or fail. TWAP vs Regular Limit Orders Feature TWAP Order Regular Limit Order Execution Method Automatic, in small parts One big order Market Impact Lower Higher Price Target Average over time One specific price Best For Large trades Small or quick trades Fill Guarantee Not guaranteed Only if market hits the price Control Needed Minimal (set and forget) Active monitoring is often needed As you can see, TWAP is great for large or sensitive trades. If you’re just buying $50 worth of Bitcoin, a simple market or limit order will do. But if you're moving $50,000 or more? TWAP is your best friend. How to Use TWAP on Bitget Bitget makes it easy to use TWAP for futures trading. You can set it up either in the mobile app or on the website. On the Bitget App Step 1 Open the Bitget app and go to the Futures Trading page. Step 2 Tap the Limit/Market dropdown and choose TWAP. Step 3 Set your trading details: ● Total quantity (e.g., 10 BTC) ● Running time (from 5 minutes to 24 hours) ● Frequency (e.g., every 10 or 30 seconds) Step 4 Bitget will show you the estimated size per sub-order (e.g., 0.008 BTC per trade). Step 5 Click Open Long or Open Short to start the strategy. On the Bitget Website Step 1 Go to the Futures page on Bitget’s official site . Step 2 Switch to TWAP trading mode. Step 3 Enter: ● Total amount ● Duration ● Frequency (in seconds) Step 4 Confirm the estimated per-order size and your available balance. Step 5 Click Open Long or Open Short to begin the TWAP execution. Tip: Make sure you have enough funds for the full strategy duration. If even one sub-order fails due to low balance, the entire TWAP plan will stop. TWAP Crypto Example on Bitget Let’s say you’re a trader who wants to buy 1,000 BTC, but you don’t want to push the price up and lose money. Here’s how a TWAP crypto strategy on Bitget would help: ● Total order: 1,000 BTC ● Duration: 4 hours (240 minutes) ● Frequency: Every 5 minutes ● Sub-order size: 20.83 BTC (1,000 ÷ 48) Bitget will place 48 buy orders, each for 20.83 BTC, every 5 minutes. Each order hits the best price at the time. Over 4 hours, you end up with a smooth average entry price, without pushing the market around. Important TWAP Crypto Notes for Bitget Users Before using TWAP on Bitget, keep the following in mind: ● Minimum order size: Each sub-order must be worth at least 10 USDT. ● Max active TWAP orders: You can run up to 30 TWAP orders at once. ● Low balance? Strategy stops: If a sub-order can’t go through due to insufficient funds, the entire TWAP stops. ● No manual editing: You can’t manually adjust a TWAP order mid-way. TWAP is a “set it and let it run” tool. If you want more hands-on control, try a limit or grid strategy instead. When Should You Use TWAP in Crypto Trading? TWAP is ideal for: ● Institutions or whales trading in large volumes ● Retail traders trying to avoid market spikes ● Volatile markets where prices move fast ● Low-liquidity tokens that are easy to move with large orders You might not use TWAP every day, but when you’re planning a big move or want to fly under the radar, it’s one of the best tools in crypto trading. Final Thoughts: Is TWAP Crypto Strategy Worth It? Yes — TWAP is one of the smartest trading strategies for crypto investors and institutions who care about price efficiency and stealth. It’s simple, powerful, and available on trusted platforms like Bitget. By learning how to use TWAP on Bitget, you can: ● Protect yourself from market slippage ● Get a fair average price ● Trade large amounts without making a splash In today’s fast-paced crypto market, a good strategy is worth more than a lucky guess. Add TWAP to your trading toolkit, especially if you’re serious about scaling up. Follow Bitget X to win 1 BTC Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

Introduction to Runes Protocol: A New Chapter for Bitcoin

The Runes Protocol marks an exciting new chapter in Bitcoin’s history. Recently, many people have asked, “rune Bitcoin mean,” wondering what this new technology signifies for Bitcoin’s future. Simply put, in the context of Bitcoin, runes refer to a new protocol that allows for the creation and management of fungible tokens directly on the Bitcoin blockchain. What does the rune Bitcoin mean and why does it look promising? Before runes, Bitcoin was rarely used for creating tokens. Most digital assets exist on platforms like Ethereum, which have their own standards like ERC-20. The first token system on Bitcoin was BRC-20, built on the Ordinals Protocol. But BRC-20 had problems—mainly generating too many useless UTXOs (unspent transaction outputs) that cluttered the blockchain and slowed the network. Then, on April 20, 2024, during Bitcoin’s halving event, Casey Rodarmor—the creator of Bitcoin Ordinals—introduced the runes protocol. So, what does rune Bitcoin mean? In short, it’s about a new way of creating secure and efficient tokens directly on Bitcoin. It uses Bitcoin’s UTXO system, which helps transactions go smoothly without making the blockchain larger and slower. Runes stands out because it uses a part of Bitcoin called OP_RETURN. This feature allows small data to be added to transactions without slowing down the network. Since runes protocol is directly on Bitcoin’s current system, avoiding complex solutions like second layers or side chains, so it's simple and secure, with the same strong security that Bitcoin offers. How Runes Bitcoin works The UTXO model Every Bitcoin transaction consists of inputs and outputs. Imagine you have $20, and you want to buy something for $5. When you pay, you give the store your $20 bill and get back $15 in change. Bitcoin transactions work similarly. The UTXO model tracks all the "change" or unspent chunks of Bitcoin left over from previous transactions. Runes transactions use this same model. When you make a transaction with runes, it consumes the total asset in your wallet and then calculates the new balance after transferring the intended amount of tokens to the recipient. It’s like paying with a $20 bill and getting back the exact change. OP_RETURN Runes transactions include a special part called OP_RETURN, which acts like an instruction manual. This part of the transaction stores important details like the rune's name, symbol, quantity, and actions to perform, such as transferring or splitting tokens. This data is embedded in the transaction but doesn’t slow down the network. Moreover, one of the safety features of runes transactions is that if there are any errors or invalid instructions, the associated runes are permanently removed from circulation. Etching: Creating a Rune The process of creating a rune and setting its properties is called etching. During etching, the creator sets the name, symbol, and how divisible the rune will be. Implications of the Bitcoin Runes Protocol Many ask, “rune Bitcoin mean,” and it’s about Bitcoin’s potential to grow while staying true to its original ideas. Here’s what makes it promising: Increases utility: Runes can increase transactions on Bitcoin, making it more useful for buying and selling digital assets. This can also bring more income to miners from transaction fees, especially as block rewards decrease over time. Attracts developers: The runes protocol might also attract many new developers to Bitcoin. This could lead to more creative apps and services, making Bitcoin more versatile. This development fits Satoshi Nakamoto’s original vision of Bitcoin being a secure, peer-to-peer digital cash system, while also supporting other uses through its blockchain technology, without changing its core principles. Competes with other platforms: The launch of runes shows how Bitcoin’s potential can expand beyond just holding value. It can now compete with platforms like Ethereum by offering better ways to create and manage digital assets. This could boost Bitcoin’s appeal and attract more investors. Supports financial products: Runes might also help speed up how Bitcoin-related financial products grow, like Bitcoin ETFs. These investment funds could become more common as runes makes Bitcoin more flexible and easier to adapt for different uses. Expands use cases: Thanks to protocols like runes and ordinals, Bitcoin could become more widely used across many areas—digital identity, property rights, voting, and more—because of its security and transparency. Runes could also enable new features like smart contracts, which automate complex transactions. This keeps Bitcoin secure and decentralized while expanding what it can do. Overall, the Runes protocol ultimately highlights how this technology transforms Bitcoin from just a store of value into a foundation for digital assets, smart contracts, and decentralized applications. It fulfills Satoshi Nakamoto’s original vision of Bitcoin as a secure, peer-to-peer cash system but also expands its role in the broader digital economy. As runes and ordinals become more integrated, Bitcoin is poised to revolutionize how we create, use, and think about digital ownership, making it a central player in the future of blockchain technology, opening doors to limitless possibilities in digital finance and beyond.

Major U-Turn in Crypto Markets Sends Bitcoin Back Below $87K

Sunday's Trump bump in crypto has mostly vanished nearly as quickly as it appeared. In mid-afternoon U.S. action, bitcoin (BTC) is changing hands at $86,700, barely above its level prior to President Trump taking to social media Sunday to tout his plans for coming U.S. crypto reserve. Ether is now actually beneath its pre-Trump level and at 0.025, the ETH/BTC ratio has touched a new five-year low. Other tokens touted by Trump as part of the coming crypto reserve — Solana's (SOL), Ripple's (XRP) and Cardano's (ADA) — have given up sizable amounts of their Sunday gains, though remain somewhat higher than prior to the president's posting. “Crypto vols are still relatively elevated with both majors still reflecting a Put Skew till end-March,” crypto trading firm QCP Capital wrote to their investors. “The VIX is also elevated, signaling broader market unease in risk assets overall, particularly after the recent tariff escalations from the U.S. administration.” The broader stock market is also in the red, with the Nasdaq shedding 1.1% and S&P 500 0.8% ahead of Trump's promised tariffs on Mexico, Canada and China. Chipmaking giant Nvidia (NVDA) is down 6.5% on news that Singapore has charged three men in a U.S. export controls breach case. Crypto stocks have given up large chunks are early gains on Monday, with a number of them — Core Scientific (CORZ) and Bitdeer (BTDR) among them — now sporting sizable losses on the session. “Concerns over U.S. growth, and impending tariffs on China, Mexico, and Canada — set to take effect tomorrow — will be in focus, driving equities and rates,” said Jake Ostrovskis, OTC Trader at crypto market maker Wintermute. Source: CoinDesk Futures Market Updates After a massive liquidation, the BTC OI has fallen below $48B and ETH OI below $20B. Bitcoin Futures Updates Total BTC Open Interest: $46.91B (-14.06%) BTC Volume (24H): $164.82B (+16.42%) BTC Liquidations (24H): $331.91M (Long)/$63.88M (Short) Long/Short Ratio: 48.87%/51.13% Funding Rate: 0.0040% Ether Futures Updates Total ETH Open Interest: $18.94B (-8.70%) ETH Volume (24H): $67.82B (-6.86%) ETH Liquidations (24H): $170.64M (Long)/$34.85M (Short) Long/Short Ratio: 48.74%/51.26% Funding Rate: 0.0018% Top 3 OI Surges OMNI1: $593.00K (+80.54%) COOK: $911.23K (+68.13%) REQ: $850.78K (+67.87%)

Bitcoin And Big Numbers: How Market Trends And Separators Affect Your Investments

Bitcoin, the flagship cryptocurrency, has once again found itself at the centre of financial discourse as markets struggle with economic uncertainty, inflationary pressures, and shifting monetary policies. After reaching record highs in early 2025, Bitcoin's price movements have been erratic, leading traders and investors to question the sustainability of its current range. With analysts debating the potential for another bull run or an imminent correction, understanding Bitcoin's pricing mechanisms, market influences, and fundamental concepts such as numerical formatting becomes crucial. Bitcoin Price Movements: Where Are We Now? As of mid-February 2025, Bitcoin has been trading in a volatile range, fluctuating between $90,000 and $105,000. Market sentiment has been wavering between optimism and caution, with factors such as Federal Reserve policies, macroeconomic conditions, and geopolitical tensions influencing price action. Analysts have pointed to three key themes shaping Bitcoin's trajectory: ● Interest rate speculations: The Federal Reserve's decision to halt further rate cuts due to persistent inflation has led to a shift in market expectations. With inflation stubbornly above the 2% target, the likelihood of a prolonged period of high interest rates has made speculative assets like Bitcoin more vulnerable to corrections. ● Institutional demand and accumulation: While some whales have been taking profits, institutional investors continue to accumulate BTC to bet on its long-term appreciation. The growing interest in Bitcoin exchange-traded funds (ETFs) and corporate treasury allocations has provided a foundation for sustained demand. ● Market psychology and retail participation: The Crypto Fear & Greed Index currently sits in a neutral zone, reflecting an indecisive market. Retail traders, who were highly active during Bitcoin’s previous rallies, remain cautious, waiting for a clear breakout before committing fresh capital. Source: Crypto Fear & Greed Index (as of February 17, 2025) Decimal And Thousands Separators Explained If you've ever stared at a Bitcoin price chart and been confused by dots, commas, and weird-looking numbers, you're not alone. Understanding how numbers are formatted in different countries is essential when dealing with Bitcoin prices, especially in an international market. What are Decimal and Thousands Separators? When numbers get big (like Bitcoin prices) or small (like Satoshis, Bitcoin's smallest unit), we need a way to make them readable. This is where decimal separators (to separate whole numbers from fractions) and thousands separators (to break up large numbers into chunks) come in. 1. The British/International system: In the United Kingdom, the United States, Canada, and most English-speaking countries, we use: ● A full stop (.) as the decimal separator – This means that £12.50 means twelve pounds and fifty pence. Likewise, $10,000.50 means ten thousand dollars and fifty cents. ● A comma (,) as the thousands separator – This helps break large numbers into readable chunks. For example, instead of writing 10000, we write $10,000, making it much easier to read. 2. The European/Continental system: Some European and Latin American countries flip this around: ● A comma (,) is used as the decimal separator – So, instead of $10,000.50, they would write $10.000,50. ● A full stop (.) is used as the thousands separator – Instead of $10,000, they write $10.000. 3. The Indian numbering system: India follows a unique system that groups digits differently: ● Lakh (1,00,000) and Crore (1,00,00,000) are used instead of millions and billions. ● Commas are placed differently – For example, ₹10,00,000 represents ten lakh (one million), and ₹1,00,00,000 represents one crore (ten million). 4. The SI (International system of Units) standard: The SI system, commonly used in scientific and financial documents, follows a slightly different approach: ● A thin space is used as the thousands separator – Example: 10 000.50 instead of 10,000.50. ● A full stop is used for decimals, similar to the British/International system. 5. The East Asian numbering system (used in China, Japan, and Korea): China, Japan, and Korea use a different system based on the myriad grouping (every 10,000 instead of every 1,000): ● Instead of grouping by thousands, they group by ten thousand (wan/万 in Chinese and Japanese, 만 in Korean). ● Instead of 100,000, they write 10万 (meaning ten ten-thousands). ● Instead of 1,000,000, they write 100万. ● Decimals are marked with a dot (.), but large numbers are grouped based on ten thousand. ● Examples: ○ 10,000 → 1万 ○ 100,000 → 10万 ○ 1,000,000 → 100万 ○ 10,000,000 → 1,000万 6. Currency symbols and their meaning: The $ symbol is commonly used to represent US dollars (USD) by default, especially in financial markets, trading platforms, and global discussions about Bitcoin. However, several other currencies also use the $ sign, such as Canadian dollars (CAD), Australian dollars (AUD), Singapore dollars (SGD), and Hong Kong dollars (HKD). When referring to these currencies, they are usually specified with their respective abbreviations to avoid confusion (e.g., C$10,000 for Canadian dollars or A$10,000 for Australian dollars). 7. What about Bitcoin exchanges? Crypto trading platforms and financial markets mostly follow the British/American system, meaning you’ll see: ● Bitcoin priced at $96,450.75, meaning ninety-six thousand, four hundred and fifty dollars and seventy-five cents. ● Smaller denominations displayed as $0.000450, meaning four hundred and fifty thousandths of a dollar. Most cryptocurrency exchanges use $ to refer to US dollars (USD) by default as the broader market recognises it as the universal fiat currency for trading pairs, unless explicitly stated otherwise. Source: Bitget Spot Trading Why This Matters When trading or investing in Bitcoin, using the wrong separator can lead to costly mistakes. Imagine wanting to send $10,000 (ten thousand dollars) but mistakenly entering $10.000 (ten point zero dollars) instead—ouch! Quick recap: ● UK/US/International System: $10,000.50 (comma for thousands, full stop for decimals) ● European/Continental System: $10.000,50 (full stop for thousands, comma for decimals) ● Indian System: ₹10,00,000 (comma placement for lakh/crore) ● SI Standard: 10 000.50 (thin space for thousands, full stop for decimals) ● East Asian System: 10万 (grouped in tens of thousands) ● Prices on crypto exchanges are shown with the symbol $ for USD, unless otherwise specified. Now you know! No more excuses. What's Next For Bitcoin? While Bitcoin's price movements remain uncertain, long-term indicators suggest that institutional demand and macroeconomic shifts will continue to shape the market. As inflation concerns persist and central banks navigate economic challenges, Bitcoin could really emerge as a hedge against traditional financial instability. For now, whether Bitcoin is headed for $102,000 or $88,000, the best strategy remains the same: stay informed, think critically, and always double-check your numbers.

RUNES•X•BITCOIN (X): A New Meme Coin Revolution on Runes

What is RUNES•X•BITCOIN (X)? RUNES•X•BITCOIN (X) is a meme coin on Bitcoin’s Runes Protocol that is inspired by Elon Musk and his symbolic use of the letter “X,” which represents limitless possibilities and connections. Unlike many other cryptocurrencies, X is entirely community-driven. This means there was no presale, no team tokens set aside for developers, and no paid promotions. Instead, X was 100% airdropped to the community. This approach embodies the true spirit of decentralization and community empowerment. How RUNES•X•BITCOIN (X) Works To understand how it works, we need to understand what does Runes Bitcoin mean. This protocol was developed by Casey Rodarmor and was released at the same time as the fourth Bitcoin halving. The Runes protocol changes the way meme coins are created and traded on the Bitcoin blockchain. What does Runes Bitcoin mean The introduction of the Runes Protocol heralds a new chapter in Bitcoin's storied existence. Before Runes, there was the Ordinals protocol, also created by Casey Rodarmor. Ordinals allowed users to inscribe special data, like images, videos, and text, onto individual satoshis - the smallest units of Bitcoin. This process made these satoshis unique and tradable on various platforms. Runes builds on this foundation by introducing fungible meme coins that exist entirely on the Bitcoin blockchain. While Ordinals made individual satoshis unique, Runes allows for the creation of replaceable (fungible) tokens. This integration opens up new possibilities for the Bitcoin ecosystem, making it easier to create and manage these tokens. Runes uses the Unspent Transaction Output (UTXO) model, which is fundamental to how Bitcoin itself works. Let's break down how this model functions. The UTXO Model Every Bitcoin transaction consists of inputs and outputs. Imagine you have $20, and you want to buy something for $5. When you pay, you give the store your $20 bill and get back $15 in change. Bitcoin transactions work similarly. The UTXO model tracks all the "change" or unspent chunks of Bitcoin left over from previous transactions. Runes transactions use this same model. When you make a transaction with Runes, it consumes the total asset in your wallet and then calculates the new balance after transferring the intended amount of tokens to the recipient. It’s like paying with a $20 bill and getting back the exact change. OP_RETURN Runes transactions include a special part called OP_RETURN, which acts like an instruction manual. This part of the transaction stores important details like the Rune's name, symbol, quantity, and actions to perform, such as transferring or splitting tokens. One of the safety features of Runes transactions is that if there are any errors or invalid instructions, the associated Runes are permanently removed from circulation. This process is known as "burning." Etching: Creating a Rune The process of creating a Rune and setting its properties is called etching. During etching, the creator sets the name, symbol, and how divisible the Rune will be. After etching, there are two main ways Runes can be distributed: ● Pre-Mining: This method rewards early supporters by airdropping tokens to those who held a specific Bitcoin Ordinal before the Bitcoin halving. ● Minting: The creator sets a total supply limit, and individuals can mint tokens up to that limit. Once the limit is reached, no new tokens can be created. Decentralization and Community-Driven Nature of X One of the most defining features of X is its complete decentralization. There was no initial coin offering (ICO) or presale, meaning no early investors who could buy large amounts of the coin before it was available to the public. This approach ensures fair market participation and prevents price manipulation by early stakeholders. X is 100% airdropped, meaning the entire supply of the coin was distributed to the community. This distribution method emphasizes the coin's commitment to decentralization and community empowerment. Read more about runes bitcoin: Bitcoin's New Era: What does runes bitcoin mean? Bitcoin's New Era: What's next for runes bitcoin? X Goes Live on Bitget X represents a new wave in the world of meme coins. Built on the innovative Runes protocol and the strong foundation of the Bitcoin blockchain, X is entirely community-driven. This fair approach embodies the true spirit of decentralization and community empowerment. How to Trade X on Bitget Listing time: May 30, 2024 Step 1: Go to XUSDT spot trading page Step 2: Enter the amount and the type of order, then click Buy/Sell For detailed instructions on how to spot trade in Bitget, please read The Uncensored Guide To Bitget Spot Trading. Trade X on Bitget now! Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

The Crypto Burrito (Volume I): Ethereum Merge

We are at the end of 2022 - a year full of surprises. From the highly anticipated Ethereum Merge to the nasty fall of industry giants, The Crypto Burrito By Bitget Academy will make a recap of the top news stories of the year, one by one. The Crypto Burrito (Volume I): Ethereum Merge The Crypto Burrito (Volume II): Terra’s Fall From Grace The Crypto Burrito (Volume III): The Never-Ending Saga of FTX The Crypto Burrito (Volume IV): Understanding 2022’s Crypto Bankruptcy Filings We Have Waited Since 2015 For The Ethereum Merge The Ethereum white paper was published in 2014 by Vitalik Buterin, the mastermind behind the idea of Ethereum, the ‘visionary and spiritual leader of the Ethereum ecosystem’. Around one year later, Ethereum’s first mainnet Frontier went live on July 30, 2015, operating with the Proof-Of-Work (PoW) consensus mechanism. As reported by Fortune, the plan for a shift to Proof-Of-Stake (PoS) had been in discussion since the inception of the blockchain, with Mikhail Kalinin being the lead contributor to The Merge. In November 2020, he published the ‘Executable Beacon Chain Proposal’, which establishes the base for the PoS Ethereum and specifies the following changes: • ‘Network bandwidth’: This means the maximum capacity of data processing. An improved network bandwidth will result in an increase in block size; Kalinin’s proposal is designed to ‘enlarge the size of executable data’ by up to 60% ‘depending on the block utilization’. • ‘Block processing time’: Kalinin explains that processing time could take as long as the PoW Ethereum if there is a ‘relatively large validator set and crosslink processing’, but the average throughput is 12ms (millisecond) per each Beacon block compared to 200ms per each PoW Ethereum block. • ‘Solidifying the design’: The proposal makes it harder to ‘introduce more executable shards’, where each shard contains a unique portion of the network’s database and is independent of each other, so that ‘problems like cross-shard communication, sharing account space and some others’ are closely monitored. Source: Twitter In short, the Beacon Chain - the first step to fully functional PoS Ethereum - is designed to allow for better data processing in terms of both capacity and speed, thereby optimizing the transaction execution. The Beacon Chain went live in the next month on December 1, 2020, marking the beginning of Ethereum’s grand transition to PoS. Six upgrades and two delays later, the Ethereum Foundation finally agreed on the schedule for Ethereum Difficulty Bomb - a concept introduced by former CCO Stephan Tual in 2015. The Difficulty Bomb is a function that increases the difficulty levels of Ethereum mining algorithm ‘exponentially’ to completely paralyze the network of the PoW mechanism and usher in the age of PoW. So apparently, Ethereum is set to shift to PoS right from the start. Everyone was thrilled to celebrate the milestone when the Difficulty Bomb went off at the terminal total difficulty of 58,750,000,000,000,000,000,000. However, there wasn’t really much to talk about this very moment. It was so quiet you might have thought something must’ve gone wrong, but it was indeed a smooth ride - that’s some splendid work by Kalinin and the developer team. Of course, the community had its own, unique way to capture this piece of history. The final NFT (minted for ca. 31.5 ETH) on the last block of the PoW Ethereum blockchain looks like this... Source: OpenSea … And the first NFTs on the PoS chain were minted for a whopping 36 ETH. Named ‘The Transition’, this collection consists of 100 panda-featuring tokens that ‘recognize two privileged addresses’ of Vitalik Buterin and the Ethereum Foundation, meaning these two addresses can claim the not yet auctioned editions at any time. That is how 0xTransition paid tribute to Ethereum creators. Below is the Edition 1, a.k.a the very first post-Merge NFT: Source: OpenSea The open interest (OI), i.e. the number of unsettled positions on exchanges, of Ethereum reached the peak in the earlier months: US$7.937 billion on January 02, US$7.934 billion on January 04, and US$7.983 billion on April 03, 2022. After April 03, speculative activities around the biggest altcoin took a dive relentlessly until the end of July, when markets started to show signs of recovery after the Terra (LUNA) and 3AC fiasco, which will be discussed in the next issue of The Crypto Burrito. Over the same period, Ethereum lost as much as two-thirds of its value, OI was down by 57.9% at its lowest, and exchange reserve was on the rise as fear took over, causing a sell-off. The official announcement by the Ethereum Foundation regarding The Merge schedule livened up derivatives markets a bit after some quiet days in August, but there was kind of a blackout phase in September - people wanted to see how everything goes with the new consensus before making any (new) bet. We could’ve ended the year decently had it not been for FTX, another debacle also covered in this series. Source: CryptoQuant The Changes Let’s talk about the fundamental changes that come with Ethereum’s PoW-to-PoS shift. Three main aspects here include energy consumption, blockchain design, and tokenomics. Energy consumption Crypto mining activities are criticized for their high energy consumption (0.4% global electricity use) and deemed not sustainable. With all the tensions between Russia and Western countries, EU member states are preparing for a harsh winter this year; hence the industry may have to stop their activities in Europe when required. Converting to PoS is intrinsically more eco-friendly (see the plunging below, 99.99% saved!), and less subject to disruptions (due to external factors), suggesting that it will comply with regulations better. Source: Digiconomist In addition, becoming a validator has become easier because no understanding of mining equipment is needed; there are several staking options available that allow any user to earn the rewards, thus boosting the adoption of Ethereum. Blockchain design Energy is not the only reason for Ethereum Merge. Equally important for this major blockchain is to improve its scalability (as in the ability to handle an increasing number of transactions). The PoW Ethereum’s capacity was limited to ca. 30 transactions per second (TPS), causing a huge inherent issue of network congestion and high gas fees. With Ethereum being home for the majority of DApps, the market desperately needed a scaling solution. Source: CryptoQuant Ethereum TPS has not been considerably improved, nor have fees been reduced after The Merge. Still, the Beacon Chain lays the foundation for the Ethereum Foundation to improve the situation, first of all for Sharding. This upgrade breaks down the database into smaller chunks for faster and cheaper transactions. Sharding should be launched in 2023 - so (theoretically) we are getting there, but a significant development is not observable immediately after the merge and in the next few months. Tokenomics Previously, new Ethereum tokens were created in the form of rewards on the former Mainnet in parallel with the Beacon Chain. After The Merge, only Beacon Chain continues to work and issues rewards for validators, putting a brake on the ETH issuance. ETH issuance rate is estimated to be approximately 4.61% p.a. pre-Merge (4.09% for miners, 0.52% for stakers). The staking issuance rate will change congruently to the total amount of ETH staked on the Beacon Chain, which hasn’t seen any radical changes and remains at 14 million ETH. ETH inflation, therefore, stays at 0.52%, showing an 88.7% reduction compared to the pre-Merge period. Meanwhile, the burning function exerts a negative influence on the ETH supply. Burning is a mechanism adopted by inflationary-by-nature tokens in order to control their inflation rate. ETH burning will wipe out all newly issued ETH when: When simplified, it becomes: At the current inflation level of 1,700 ETH issued per day, the net daily ETH issuance rate (newly issued minus burned) will turn negative when the average daily gas fee is 16 gwei or more. The annualized supply growth of ETH since September 15 has been hovering above 0%, which is not a good proof for the ‘deflationary ETH’ theory. When we take a closer look at the base fee chart (this base fee is what gets burned to reduce ETH supply) versus ETH price, notably after The Merge was completed, it’s safe to say that burning did help ETH land in the green after a local low every now and then, for example, Price USD 1,107.40/Base Fee 12.09 (November 21, 2022) to Price USD 1,139.61/Base Fee 14.02 (November 22, 2022). Albeit one single case isn’t convincing enough; most of the time, base fees shot up whenever there was a panic sell. Source: CryptoQuant Ether holders obviously find the idea of deflationary ETH exciting, as it should make ETH scarcer and more valuable with time. However, informed market participants for sure will act on what they know to influence the net issuance rate of Ethereum’s native token in their own interest. Ethereum Comes Out Stronger ETH deflation is not coming soon, but was ETH able to pull off a nice performance this year? ETH and its forks As the countdown for Ethereum Merge got closer to zero, many began talking about a fork since, as ETC miner Sebastian Nill put it, ‘The possibility of a hard fork has always been there. People are always going to prefer to be able to mine Ether rather than having to buy it.’ And actually, there have been two Ethereum forks: EthereumPOW (ETHW) and EthereumFair (ETHF). Throwing in the six-year-old Ethereum Classic (ETC), and we have three forks, although Ethereum Classic (ETC) has its own thriving ecosystem of DApps and is still in the Top 30 cryptocurrencies by market cap. Here is a comparison between the profits of the four tokens (ETH, ETC, ETHW, and ETHF) on a 3-month basis. In general, ETC still did well when the market was good/not too bad (Q1 and Q3), while ETH was definitely a staple in difficult times. Extremely hyped in the first days post-Ethereum upgrade, but ETHW and ETHF couldn’t even stay strong till the end of September. ETHW lost 77% after 38 days of trading; ETHF is even worse - 89% after 16 days of trading. How did that happen? EthereumPOW users reported accessing issues on the same day the project went live, which turned out to be the result of an attack on this fork. Unclear future plans, a white paper meme with absolutely no useful content, and an inactive Github repo do not make a great recipe for a brilliant investment. EthereumFair doesn’t even have a white paper, and its ecosystem is even less prosperous than that of EthereumPOW. Furthermore, data from 2miners.com shows that ETHW and ETHF hash power combined makes up less than 20% of ETC’s hash rate. Hash rate measures the computational power used on a PoW network and therefore is an indicator of one blockchain’s health, security, and difficulty. At its peak, the OG Ethereum saw a hash power of 1,126.67 TH/s, which is nearly 10 times ETC’s, 70 times ETHW’s, and 300 times ETHF’s. They still have a long way to go to become a match for ETC, let alone for Ethereum. ETH and BTC What about the race between the two largest cryptocurrencies? Below are the rolling correlations between ETH and BTC price for the year 2022 (up until December 20). Rolling correlation allows us to see changes in the correlation over time, here with 7 days, 30 days and 90 days lookback. For the short run (one-week basis), the correlation between ETH and BTC price was much less reliable; the 7D correlation dropped to as low as less than 0.25 in January and several times below 0.75, reasonably because of upgrades, Difficulty Bomb delays and other news pieces related to the ecosystem. More consistent trend is observed over the one-month window; that ETH and BTC prices were more likely to move in tandem (around 80-90% of the time) on a monthly basis. Granted that longer time frames show better reflection between the two assets’ prices (noises cancelled out), both two coins ended the year losing two-thirds of their value after May and November crashes. Bitcoin held on a little bit better, with a return of minus 65% compared to Ethereum’s minus 68%. ETH adoption 2022 is definitely not a good year for Ethereum when it comes to wallet activities:• Active addresses: On average, the number of Ethereum active addresses daily is 490,648 in 2022 versus 538,163 in 2021 (-8.83%).• Unique addresses: The difference between this year's and last year’s average of daily increase is wider (-32.31), plunging to 96,472 in 2022 from 142,517 in 2021. • Bonus 1: The average daily transaction value for 2022 on Ethereum is US$585,534 against 2021’s US$1,080,340 (-45.80%). Calculations used data as of December 20, 2022 from Blockchair. • Bonus 2: The total searches for Ethereum and ETH in 2022 stand at 3,677, down 23% from 4,806 in 2021. Calculations used data as of December 20, 2022 from Google Trends. The thing is, Ethereum Merge gave Ethereum-based protocols a boost in revenues, together with a cutback in costs. Below are the cumulative earnings of blockchains from the last 180 days and 90 days (as of December 20, 2022). The biggest change is Ethereum went from second worst pre-Merge to best performer post-Merge with US$15.5 million in 90-day cumulative earnings. Source: Token Terminal Similar to the case of ETH and ETC, Ethereum might not be the best gainer in green markets, but it’d hand down see less blood being shed than the so-called ‘Ethereum killers’ in bears. The six selected coins are the native token of L1s with the highest Total Valued Locked (TVL) on December 20, per DefiLlama. TVL on Ethereum alone (US$13,531,736,320) was 43% higher than the aggregate TVL of the remaining five (US$9,468,263,680). Besides, we dare say that Ethereum’s popularity will rise exponentially given that non-crypto natives will soon be able to buy, sell and store Ethereum directly on their Paypal account thanks to the new partnership agreement between MetaMask and the digital payment giant. MetaMask users already have painless on-ramp as they can pay for their crypto purchases with debit cards, Visa credit cards, MasterCard credit cards, and Apple Pay. Ethereum Liquid Staking Derivatives One of the big words for 2023 would be liquid staking derivatives (LSDs). A form of derivatives, which means its value is derived from another asset, LSDs allow DeFi users to stake their assets on a platform to earn yields and still be able to obtain extra utility from the staked tokens. To make it easier to comprehend, let’s say we have ETH that we want to stake on the Beacon Chain. Suppose that we go to Lido, delegate our ETH to the corresponding pool, and receive stETH as a claim on our original ETH. Similar claims used to be illiquid and had almost no utility except for redeeming ETH. stETH and other LSDs, on the other hand, can be used as collateral on Aave for borrowing, for yield farming (ETH/stETH pool) on Curve, and so many more. That way, we can deploy two income-generating schemes at the same time: via staking and via DeFi activities. Ethereum Merge brings in the prosperity of liquid staking markets for not everyone wants to be a solo validator with 32 ETH locked on the Beacon Chain. Lido offers one of the first pooled staking options with stETH and has indeed become the biggest validator on the Beacon Chain, dominating the market at nearly 67%. In the case of ETH liquid staking derivatives, each token is pegged to ETH at the 1:1 ratio. Source: Dune Analytics Also in the Top 3 are Coinbase and Rocket Pool, so two decentralized entities and one exchange. cbETH (Coinbase’s tokenized ETH liquid staking positions) emerged only after the Ethereum Foundation confirmed The Merge schedule on August 25. Sometimes we see headlines such as ‘stETH loses peg’ and wonder, does the peg really matter? LSDs show some resemblance to wrapped assets in that users and holders are putting their faith in the integrity of issuers. As a validator, LSD issuers can be slashed, i.e., penalized, if they fail to maintain their validating responsibilities with good behavior. Validators may lose their entire stake on Ethereum as a consequence of slashing and, for that reason, can no longer redeem LSDs. Aside from that, LSDs losing peg will put DeFi borrowers at an awful liquidation risk as the loan isn’t considered guaranteed anymore. In that case, LSDs will be sold automatically, and you may now kiss your staked ETH goodbye. On the flip side, if LSDs consistently trade at a premium to ETH, the pool won’t have enough ETH to pay back to stakers, especially if a large amount of LSDs are to be redeemed at the same time. stETH experienced a prolonged period of discount from May to September following the collapse of Terra (LUNA), then crypto lender Celsius. Since The Merge's completion, it has reclaimed its peg. cbETH is almost constantly trading at a discount, at times as low as 8.38%, though that should be less of a problem for their holders, who are more of a centralized nature and do not care much about on-chain activities. In early 2022, rETH (issued by Rocket Pool) value dropped by 10% but saw an undisturbed appreciation towards the second half of the year. When we zoom in on the last quarter, we can see that stETH appears to be the most stable, whereas its two peers seem to be moving further away from each other as time goes by. This stability looks mesmerizing, staking with Lido feels like the best choice, right? Think about it again. With Lido’s dominance on the Beacon Chain hitting 67%, can we expect Ethereum to be decentralized? Abuse and censorship are among the concerns discussed by researchers of the Ethereum Foundation. Yield-bearing LSDs are a nice addition to the ecosystem of complex products and derivatives; they are expected to grow even more rapidly into the year 2023. Closing Thoughts Enough about the PoS hype. One downside of this shift is the definition of ETH: Is it a commodity? Is it a security? The Securities and Exchange Commission (SEC) Chair Gensler hinted, around the time when The Merge took place, at the possibility of PoS ETH becoming a security. The Commodity Futures Trading Commission (CFTC) still holds the view of ETH having the quality and characteristics of a commodity, for now, but with the SEC and even Senator Cynthia Lummis, an outspoken advocate of crypto, referring to ETH as a security, it sounds like more regulatory scrutiny is on the way. Register your Bitget account to enjoy new user rewards! Disclaimer While we do our utmost best to make sure that the information contained herein is acquired from reliable sources, we provide information on an "as-is" basis with no representations as to the validity, accuracy, usefulness, timeliness, or completeness of any information. We are not responsible for any errors or omissions, losses, and/or damages arising from its display or use. The views, information, or opinions expressed in the report are intended for informational and educational purposes only. It is not intended or offered to be used as legal, tax, investment, financial, or other advice. Under no circumstances are Bitget, our employees, agents, partners, and/or co-operations responsible for any decision made, action taken, or result obtained from or in reliance on the use of the information herein. Any investment or trading ideas, strategies, or actions should never be taken without first taking into consideration each individual's personal and financial situation, and/or without consulting financial professionals.

Transparency as a priority - Bitget shows proof of reserves

Confidence and transparency are two important pillars for sustainable development in the crypto market. Bitget has already launched a 200 million USD protection fund to build confidence, and we will soon be ready to share our Merkle Tree proof-of-reserves to promote complete transparency and comprehensive asset auditing. What is a Merkle tree? Originally a Merke tree is a data structure that is used in computer science applications. In bitcoin, and other cryptocurrencies, Merkle trees serve to encode blockchain data more efficiently and securely. They are also referred to as binary hash trees. A Merkle tree is essentially designed to break large pieces of data into considerably smaller chunks, which ensures that all the transactions can be verified in a timely manner. The tree summarizes every transaction by creating a small fingerprint of a specific set of transactions. Due to this organized and structured way of organizing data, it does not only allow the verification process to be very efficient. It also allows detection of any tampering. Detect any tampering Every transaction is stored within a Merkle tree as a hash. If the details of a single transaction are changed, those changes will progress into the upper levels of the tree before finally reaching the Merkle root. The Merkle root that's displayed in the header can then be compared to the Merkle root present in the data, so tampering can quickly be detected. How can this concept be used to show proof of reserves? Centralized cryptocurrency exchanges (CEX) store information on the assets of each user using a central database ledger. Exchanges can therefore utilize Merkle trees to store the hash value of assets in each user`s account ìn the Merkle Tree`s “lead nodes”. In the second stage of this validation process, a third party audits the assets in the Merkle Tree`s leaf nodes tò veri`fy ànd authenticate user holdings. Transparency is more important than ever Since our humble beginnings, Bitget has worked with users like you worldwide as the market has undergone growing pains and earned your trust and support. Those of us here at Bitget cannot be more grateful for the trust you've placed in us and will continue to have your backs as the market continues its volatility. Create a Bitget account through this referral link and receive up to $4000 in bonuses: https://partner.bitget.com/bg/ZZJ4YJ Disclaimer: The information provided above is not financial advice but for educational and entertainment purposes. Please do your own due diligence or consult a financial advisor before investing in any digital assets. All opinions expressed on this article are opinions of individual traders using the Bitget platform and do not reflect the opinions of Bitget or its affiliate companies and partners. The author’s opinions are based upon information they confirm to be reliable, but neither Bitget nor its affiliates warrant its complete accuracy, and it should not be relied upon as such.

BGB Sail: September Edition

Bitget Academy is delighted to announce the release of our new BGB Sail Series, which reflects on BGB performance each month alongside the market summary. BGB Sail: August Edition can be found here. Market Summary Whew, the September summary is finally here. Let’s take a trip down the memory lane and reflect on the key moments of the month before moving on with the Ethereum Merge. Overall, attention from policymakers and authorities for blockchain tech and crypto has increased significantly since the start of this year. Take a look at the chart below, which shows the number of blockchain mentioned in the American Securities and Exchange Commission (SEC) filings over time: Source: The Block After two much quieter months of June and July, the number of mentions almost doubled in August. September, again, cooled down a bit, but the related word count still neared 3,000. Even though it’s most likely that regulatory uncertainty in the U.S. will last for some time, we have to say that crypto’s Wild West days are coming to an end, as the Internal Revenue Service (IRS) is making sure that they properly collect cryptocurrency tax. Across the continent, EU officials accelerated the completion of the Markets in Crypto Assets Regulation (MiCA) bill’s final draft in September, which was unanimously passed by the European Council on October 5 and later by the European Parliament Committee on Economic and Monetary Affairs on October 10. The MiCA bill is the first comprehensive regulatory framework for the digital space. Even without this landmark bill, the month was still a bumpy ride for all traders. The Federal Reserve (FED) remained hawkish after the release of the U.S.’s September CPI data, which shows an 8.3% YoY and 0.1% MoM increase in prices and, once again, raised the interest rates by 0.75%. The decision caused a free fall in the SP500 while the global crypto market cap already lost its US$1 trillion mark after the CPI release. From this perspective, we can expect that crypto markets should have a higher correlation with traditional finance (TradFi). Data from Kaiko confirms this guess: Source: Kaiko Analytics Surprisingly, Bitcoin did not only record a new 1-year high for its NASDAQ correlation but also for its correlation with bond markets. A higher correlation means that Bitcoin is more likely to get rekt if the other two do. Talking about NASDAQ, the equity exchange operator was planning a plot to provide crypto custody service for institutional investors but announced in early October that they are waiting for more regulatory clarity and institutional adoption before proceeding with the plan. Now Ethereum Merge - the most awaited event of September. It’s important to reiterate the importance of this transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) and how they’ve been realised (or will be): (1) Crypto mining activities are criticised for their high energy consumption (0.4% global electricity use) and deemed not sustainable. Especially after the escalation of tensions between Russia and Western countries, EU member states are preparing for a harsh winter this year, hence the industry may have to stop their activities in Europe when required. Converting to PoS is naturally more eco-friendly (see the plunging below, 99.99% saved!) and less subject to disruptions (due to external factors), meaning better adoption of the industry coming our way. Source: Ethereum Energy Consumption Index (2) Gas fees are not significantly reduced after The Merge. Still, the Beacon Chain lays the foundation for the Ethereum Foundation to improve the situation, especially with Sharding. This upgrade breaks down the database into smaller chunks for faster and cheaper transactions. Sharding should be launched in 2023, so until then, Ethereum gas fees are still an entry barrier for many crypto users. (3) Previously, new Ethereum tokens were created in the form of rewards on both the (former) Mainnet and on the Beacon Chain, which went live in 2020. After The Merge, only Beacon Chain continues to work and issue rewards for validators. However, the only metric that seems to be controlled is the average daily income, not the total daily income: Source: BeaconScan The transition occurred seamlessly on September 15, 2022, of course, with the birth of Ethereum fork(s). Data shows that Ethereum forks, new and old, still underperformed the mighty Ethereum. Source: Arcane Research More on ETH price and trading activities will be discussed later within the scope of Bitget-Verse. BGB Performance in September Despite the eager anticipation of the Ethereum Merge, ETH price saw a 12.43% MoM decrease, equivalent to the highest losses in returns. Staking on the Beacon Chain may be a good idea, but apparently, purchasing or longing ETH prior to the event is not. September Is A Brilliant Month For BGB BGB September summary can be described in one word: spectacular. The only one to outperform the others notably. By the month’s end, BGB value had surged by 22.5% cumulatively. The highest value of BGB in September was US$0.200031, up by 15% from August’s high of US$0.173718 (data source: Coingecko). BGB has been holding itself well amid the bears’ suffering. Analysis of previous months is available here: BGB Sail: August Edition BGB Sail: July Edition BGB Sail: June Edition BGB Sail: May Edition Never Too Late To Hold BGB With the launch of Bitget’s new DeFi product series, BGB becomes strictly a necessity. The more BGB you own, the more you can earn (check out Bitget Launchpool!). If you are a risk-averse user, why not try BGB Earn? Mind you, interest rates may be on the rise, but a strong US-Dollar is hurting all other fiat currencies. For example, the Euro (EUR) has lost ca. 15.9% from January to September, the British pound (GBP) 21.8%, the Japanese Yen (JPY) 26%, etc. Even the Swiss Franc (CHF) has been weakened by roughly 7.6%, whereas the BGB net value increased by 20%! Given that BGB Earn offers a 6% APR, the only question is just how many times your asset value could grow if you are a BGB holder? Bitget-Verse Exciting month for BGB, exciting month for Bitget as well. By the end of September 2022, users had gotten access to 10 yield farming pools, two for each reward token, and received nearly US$150,000 in reward tokens. As illustrated in the table below, staking BGB (put them to work be the diamond hands) yields significantly more than staking reward tokens. Of course, this is also a safe, convenient way to earn more for holders of such tokens. Ethereum Merge on Bitget We celebrate The Merge with the introduction of Bitget Pop Grab, a fun feature that allows friends of Bitget users to win coins for free - they just need to set up their Bitget account (takes less than 3 minutes). Send coins to remind your friends of your moments together - who says the digital space is bringing people away from each other? Back to the topic, The Merge served as a huge speculative event for traders. Most traders didn’t hold their positions for too long, thus, there is a difference between the daily long/short ratio and the funding rate, as shown in the charts below. Please note that for the sake of easy interpretation, the funding rate here is calculated by taking the average of three funding rate cycles every day. BTC short dominated the long for two-thirds of the month (18 days), while it’s only 11 days for ETH. That is to say, short-term speculators were expecting Bitcoin price to drop more, which was actually not the case. Bitcoin firmly maintained the US$20,000 key level throughout September, proving that mid and long-term traders had reasons to keep paying funding fees to short positions. Meanwhile, it’s fascinating to see Ethereum funding rate plummeting around The Merge. This data responds to the daily Long/Short ratio for ETH in that the Ethereum price should go down. But ETH didn’t give in right away; it struggled to lock in an increase of 4% in value on September 15 before losing the US$1,500 mark. In the 16 days after the transition, there were only five days where shorts had to pay longs, i.e., more short-sellers were willing to keep their positions open than bulls. Over the same period, Ethereum nosedived from US$1,635.368 to US$1,335.739 (-15%). A hard time to be bullish, especially with the uncertainties regarding the definition of Ethereum by authorities (is it a security or not) and the fact that Ethereum might not be as decentralised as advocates wanted it to be since validators of this network can and have chosen to not verify Tornado Cash transactions. Spot Futures Activities Futures activities, represented by the aggregated volume of all contracts, have dropped by 40%. It’s understandable, though, because “wave riders” were waiting for the precious moments right after Ethereum Merge only. Bitcoin dominated the futures markets, standing at 67-69% of the total open interest for September. September is the month of Free Spot Trading. Trading any spot pair at absolutely ZERO Fees - the event is still going on until further notice! And in order to increase the spot selection, Bitget has introduced the Bitget ABC Programs: Bitget users will vote for their beloved token to be listed, and we sort out the new listings by the alphabet; there is always something to wait for every day. GroupCoin Bitget Elite Club Bitget is releasing new programs for all trader groups, which our users can fully utilise to develop an economic trading strategy. The first one is GroupCoin, a unique feature for Spot Trading. Users can team up to buy tokens in mass for extremely good prices, for example, a group of more than 2,000 can buy BTC at half the price. The second session of GroupCoin took place from September 8 to September 11, and the target is ETH. Although ETH didn’t make a new all-time high, that’s for sure a juicy deal. For full-time traders, we invite you to join Bitget Elite Club to get rid of maker fees in the first months and waive fees for other types of transactions. Please get in touch with us here to get personalised solutions for your trading! Join us now on these bountiful events: Fiat Content Competition: Share The $5,000 Prize Pool! Bitget’s KCGI Warm-Up: 5,300 USDT To Be Won Bitget Gacha Heart: Win Mystery Boxed Of Up To 999 USDT Stand a Chance to Win a Jersey Other Awesome Prizes! Deposit Trade Campaign Bitget’s Halloween Treat: A Total Of 109,000 USDT Ready To Be Claimed Not a Bitget user yet? Sign up today for more insights and receive a $5005 reward!

What is Dollar-Cost Averaging (DCA)?

This article explains how this long-term investment strategy works and why it’s widely trusted. What is Dollar-Cost Averaging (DCA)? During turbulent times, investors are more hesitant to “bet big”. The dollar-cost averaging (DCA) strategy is invented to deal with uncertainties: By increasing their position bit by bit, investors are less susceptible to negative emotions and as a result less likely to make irrational decisions. Definition The dollar-cost averaging is a strategy where investors make regular but rather small investments in an asset, gaining exposure to that particular asset gradually over time. It protects investors from potential losses due to: – Picking the “wrong” time: Timing in investing is one of the most important components. Paying a lump sum when the whole market is trading in red can lead to severe losses, especially in extremely volatile markets such as crypto. – Market fear: Retail investors can be heavily influenced by the overall market sentiment. As far as we know, panic and fear are not really good friends of rationality. The Benefits DCA relies on historical data that shows markets do tend to rise with time. It helps investors zoom out, look at the bigger picture and stick with the plan. They also utilise DCA to make efficient capital allocations. DCA requires self-discipline instead of technical knowledge. It rules out the emotional components, effects of market downturns and reduces the associated risks. Dollar-Cost Averaging: when and when not The dollar-cost averaging (DCA) strategy can be applied at any time, but will be of greatest use in the following situations: – The asset has long-term growth potential: As the saying goes, “do your own research”. We always advise you to analyse the available information carefully before deciding to invest. If an asset has great long-term growth potential, DCA can bring predictable returns with a minimum level of risk. – Volatile markets: DCA breaks the total amount of capital into small equal chunks, which take place at regular intervals regardless of how the market is performing. There are good days and bad days; the dramatic changes will be averaged out thanks to this strategy. – Beginners and retail traders: These groups of traders can be easily affected by trends and market sentiment. They also need time to learn several trading techniques. DCA teaches them to be disciplined, be careful with the FOMO (fear of missing out) feeling as well as emotional trading. As mentioned above, it is best employed in tandem with careful research. Read here for more information on how to do fundamental crypto analysis. How does DCA work? You’ll need to decide on the asset to invest in, its potential and reliability, how much capital in total to be allocated to this asset, how often to invest (i.e. the intervals) and follow through. Beware though: DCA will not generate magnificent returns overnight, which does happen with some blockchain-based crowdfunding projects. DCA guarantees safe entry into the market and is designed for a longer term approach. If you want to engage in crowdfunding activities, we recommend starting with a small amount of equity and turn to projects vetted by and launched on renowned exchanges, for example Bitget Launchpad. Example Assume that we invested US$100 in Bitcoin every week since May 2018. By now, we will have invested US$20,900 in total. We can see the green line, which is our total investment over time, and the orange line that demonstrates our portfolio value. The percentage change of the portfolio should be 309% despite the market’s fluctuations. DCA has therefore helped our investment quadruple in four years without constantly worrying about Bitcoin’s lows and highs. A Bitcoin portfolio with DCA Strategy. Source: dcabtc. The Rules There is a set of requirements that come with the dollar-cost averaging (DCA) strategy, as given below: (i) Do the research: Make sure that you pick “the right thing” to invest in; (ii) Stay focused: No matter how bad the asset’s performance is on a day or a week, remember that you commit to purchase it on a regular basis; (iii) Keep yourself updated: In a digital world, information is the new currency. Follow the project and its team on social media (Twitter, Telegram, Discord, etc.) and pick up the keywords. That also effectively helps with timing the market; (iv) Zoom out: The crypto industry is dominated by Bitcoin. Therefore, any sharp fluctuations in Bitcoin prices will definitely impact the whole market. It is also starting to show correlations with other asset classes, for example, stocks and interest rates. In short, it’s all related; the more you know, the better prepared you are to deal with unwanted scenarios; (v) Distinguish between destructive emotions and gut feeling: Examples of destructive emotions include panic selling/buying, FOMO, etc., while gut feelings stem from years of experience and the processing of all relevant market information. Using DCA means you are getting rid of the nasty, irrational voice in your head. But if you have been around for some time, trust your gut feeling.