{"id":1101,"date":"2023-03-03T13:20:47","date_gmt":"2023-03-03T13:20:47","guid":{"rendered":"http:\/\/78.47.81.216\/?p=1101"},"modified":"2023-03-03T13:20:48","modified_gmt":"2023-03-03T13:20:48","slug":"difference-between-crypto-coin-and-token","status":"publish","type":"post","link":"https:\/\/blog.ag.qubiq.cc\/?p=1101","title":{"rendered":"Difference between crypto coin and token"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/03\/What_is_the_difference_between_a_crypto_token_and_coin_All_you_need-1024x576.jpg\" alt=\"\" class=\"wp-image-1104\" srcset=\"https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/What_is_the_difference_between_a_crypto_token_and_coin_All_you_need-1024x576.jpg 1024w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/What_is_the_difference_between_a_crypto_token_and_coin_All_you_need-300x169.jpg 300w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/What_is_the_difference_between_a_crypto_token_and_coin_All_you_need-768x432.jpg 768w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/What_is_the_difference_between_a_crypto_token_and_coin_All_you_need.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Today, both novices and experts in the <strong>cryptocurrency <\/strong>field often use<strong> coins and tokens<\/strong> as synonymous terms. However, there is a big <strong>difference between tokens and coins<\/strong> and that&#8217;s what we need to figure out. But why is this so important? It is one thing for members of the <strong>cryptocurrency <\/strong>community to understand the <strong>difference between a crypto<\/strong> token and <strong>Bitcoin<\/strong>, but it is another matter for newcomers to be confused with these terms at first.<\/p>\n\n\n\n\n\n<h2 class=\"wp-block-heading\">What is a<strong> crypto coin<\/strong>?<\/h2>\n\n\n\n<p><strong>Bitcoin <\/strong>was the first <strong>cryptocurrency <\/strong>that runs on its own <strong>blockchain <\/strong>and is used as a means of payment between participants. Therefore, <strong>Bitcoin <\/strong>has become the default standard and is called a <strong>crypto coin<\/strong>. To help understand this, let&#8217;s review some basic definitions.<\/p>\n\n\n\n<p>A <strong>crypto coin<\/strong> is a digital currency that is created using cryptography methods and has its own <strong>blockchain <\/strong>where <strong>transactions <\/strong>take place. As mentioned above, the first and most well-known <strong>crypto coin<\/strong> is <strong>Bitcoin<\/strong>, which is transmitted within its <strong>blockchain<\/strong>.<\/p>\n\n\n\n<p>One <strong>crypto coin<\/strong> cannot be directly transferred from its <strong>blockchain <\/strong>to another. For instance, you cannot transfer <strong>Bitcoin <\/strong>to an <strong>Ethereum <\/strong>address. This is because <strong>Ethereum <\/strong>has its own <strong>blockchain <\/strong>and unique addresses. Let&#8217;s highlight the main points that define <strong>crypto coins<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Crypto coins<\/strong> within the same blockchain have the same characteristics. There are no privileged ones (all are equal). <strong>Crypto coins<\/strong> are also divided into parts.<\/li>\n\n\n\n<li>Limitation on issuance. Only a certain and prescribed amount of <strong>digital assets<\/strong> can be mined, and no more.<\/li>\n\n\n\n<li>Ability to be used as a payment instrument. This asset can be used to buy goods\/services directly, without exchanging them for other currencies.<\/li>\n\n\n\n<li>Free exchange within the network. You can transfer <strong>cryptocurrency <\/strong>to anyone on your <strong>blockchain<\/strong>.<\/li>\n\n\n\n<li>All transfers are kept on the <strong>blockchain<\/strong>. Every <strong>transaction <\/strong>is confirmed and you can view the story of that <strong>transaction <\/strong>at any time.<\/li>\n\n\n\n<li><strong>Transaction <\/strong>security is provided by the cryptographic algorithm.<\/li>\n<\/ul>\n\n\n\n<p>Similarly, it is not possible to transfer <strong>cryptocurrency <\/strong>from one <strong>blockchain <\/strong>to another. But today, work is already underway to combine <strong>blockchains<\/strong>, and cross-chain technology is being used very actively. Such platforms significantly reduce the speed of <strong>transactions<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a<strong> crypto token<\/strong>?<\/h2>\n\n\n\n<p>Finally, the second basic concept. A <strong>crypto token<\/strong> is a digital currency created within an <strong>existing blockchain<\/strong> that performs the same functions as a coin. <strong>Crypto tokens built <\/strong>on <strong>Ethereum <\/strong>are the most common. However, the functionality of a <strong>crypto token<\/strong> is extended and it can be a digital certificate that guarantees a company&#8217;s commitment to the asset owner. So let&#8217;s highlight the main characteristics of the <strong>crypto token<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lack of its own <strong>blockchain <\/strong>since tokens are created based on already existing options.<\/li>\n\n\n\n<li>Dependence on the bandwidth of the network on which the <strong>crypto token<\/strong> is created.&nbsp;<\/li>\n\n\n\n<li>Applicability, as a rule, within a single project or product.<\/li>\n\n\n\n<li>Variety of applications depending on the tasks (participation in <strong>smart contracts<\/strong>, bonus\/reward, game unit).<\/li>\n<\/ul>\n\n\n\n<p>In terms of bandwidth, the situation in the <strong>Ethereum <\/strong>network today does not allow many projects to fully carry out their activities because as a result of the growth of <strong>transactions<\/strong>, fees have risen strongly.<\/p>\n\n\n\n<p>It could be said that <strong>crypto tokens are digital<\/strong> assets that become a unique extension of <strong>smart contract<\/strong> platforms such as <strong>Ethereum<\/strong>. The functionality of<strong> crypto tokens<\/strong> depends entirely on the capabilities that the developers have built into the <strong>smart contracts<\/strong>. Now <strong>smart contracts<\/strong> enable secure and confidential <strong>transactions <\/strong>without external parties. In addition, such <strong>transactions <\/strong>are traceable and transparent.<\/p>\n\n\n\n<p>Also, this asset meets a certain <strong>token standard<\/strong> to ensure compatibility with wallets and services on exchanges. The most common <strong>token standard<\/strong> is ERC-20.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is the purpose of <strong>crypto tokens<\/strong>?<\/h3>\n\n\n\n<p>Today <strong>crypto tokens<\/strong> can be a payment instrument as well as an asset that allows you to get a part of a project. It all depends on the<strong> types of tokens<\/strong>. For instance, a <strong>utility token<\/strong> gives the user access to a company&#8217;s services\/products after a certain time. <strong>Utility tokens <\/strong>are issued centrally and are needed to develop the project&#8217;s ecosystem. Typically, <strong>utility tokens<\/strong> are distributed during an ICO.<\/p>\n\n\n\n<p>You can better understand the use of this asset by analogy with store gift certificates. They cannot be used, for example, as tickets to a concert or a football match. The certificate can be redeemed at a specific location and for a certain purpose \u2014 to get something from the store&#8217;s assortment.<\/p>\n\n\n\n<p>But often the entire worth of a <strong>crypto token<\/strong> is only the speculative component and the opportunity to make money from the exchange rate. By the way, crypto tokens cannot be directly transferred from one <strong>blockchain <\/strong>to another.<\/p>\n\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Crypto token<\/strong> vs coin: what is the distinction?<\/h2>\n\n\n\n<p>So let&#8217;s summarize and highlight the key differences between these assets:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Functionality. Coins are only used to pay for goods and services, while tokens are involved in more system tasks.<\/li>\n\n\n\n<li>Right of use. A project that issues tokens can put information or permissions into them that allow the owner to use something or buy certain types of goods.<\/li>\n\n\n\n<li>Currency role. A coin can only be digital money, and a token is not necessarily used to pay for goods and services. Tokens can be used within a project not only to support certain processes but also to pay for something.<\/li>\n<\/ul>\n\n\n\n<p>So, we consider the main <strong>difference between crypto coins and tokens<\/strong>. Understanding the distinction between these <strong>digital assets<\/strong> is a very important point for any investor or person who wants to learn more about <strong>blockchain networks<\/strong> or<strong> smart contracts<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are crypto tokens and crypto coins? What is the difference between these digital assets? What is the purpose of the tokens nowadays? Helpful info for novice and advanced crypto enthusiasts.<\/p>\n","protected":false},"author":7,"featured_media":1104,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[40,56,38,95],"authors":[37],"class_list":["post-1101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","tag-alphaguilty","tag-cryptocurrency","tag-education","tag-token","authors-alphaguilty"],"acf":{"reading_time":8},"author-name":"AG Content Manager","suggested-articles":[{"ID":985,"post_author":"7","post_date":"2023-02-24 16:00:19","post_date_gmt":"2023-02-24 16:00:19","post_content":"<!-- wp:image {\"id\":986,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/02\/How-to-start-investing-in-crypto_-1024x576.jpg\" alt=\"\" class=\"wp-image-986\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>The buzz surrounding crypto&nbsp;remains unchanged. They can, in fact, turn a person into a rich man if he&nbsp;makes a considered investment&nbsp;at&nbsp;the right&nbsp;time. Maybe you've been wondering about the&nbsp;ways in which you might invest in cryptocurrencies. It's understandable given the large number of financially successful examples available on the web. Among them are B.Silbert and E.Musk. To start your cryptocurrency adventure, you must first understand what it is and where to start. The overall quotes of crypto has decreased, which may be a good sign for beginning to invest.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":987,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/02\/laptop-1024x685.png\" alt=\"\" class=\"wp-image-987\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading -->\n<h2 class=\"wp-block-heading\">What kind of returns can you expect today from <strong>investing in cryptocurrencies<\/strong> ? <\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Most individuals nowadays have heard of mining, blockchain, crypto investing, and other concepts of a similar kind. Nevertheless, you must conduct an in-depth investigation of the cryptocurrency world before you can begin investing. You'll need to know how to differentiate profitable projects from the ones which are not, as well as how much\nmoney is required to begin investing. You may invest in cryptocurrencies and make money if you have the necessary knowledge about them, the ability to assess it, and the necessary resources (money, time, and patience). However, keep in mind that there are risks involved because you could both succeed and fail completely.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2 class=\"wp-block-heading\">An overview of everything required to <strong>invest in cryptocurrencies<\/strong>.<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Prior to investing, you must choose a strategy. It is best to place Bitcoins in a cold wallet if a user plans to buy them and set them aside for many years. In all other cases, employing an exchange's services is worthwhile.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>You should focus on big, well-known, and regulated platforms when selecting a cryptocurrency exchange for investing. By doing this, you may reduce the probability of encountering scammers and raise your chances of receiving financial compensation in case of becoming a victim of a hacker. It's important to thoroughly review the user agreement conditions before investing in a project. Verification is an additional crucial requirement. To create an account or withdraw money, regulated platforms require\nobligatory verification of your identity. Using an exchange is the most typical approach to invest in cryptocurrencies. You may deposit funds into several exchanges either straight from your card or via a payment system.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The following are all the methods that newbies may adhere to start the investing process:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Purchase and store the coins. You have the option of purchasing popular coins like BTC or ETH or paying attention to others. Consider Dogecoin, or may be Solana. There is always the potential for their price to rapidly increase with flow of time. But do not forget that there is a chance that some cryptocurrencies could vanish and lead to losing your assets.\n<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Invest in crypto projects or companies. Such are the enterprises that operate in the cryptosphere. They may be mining crypto, making mining equipment or holding substantial amounts of cryptocurrency on their balance.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Invest in cryptocurrency-focused ETFs. You may invest in crypto funds if you don't want to select a specific cryptocurrency company. They handle the money of the investors to ensure that they receive a return on their investment that is higher than the rate on bank deposits. Additionally, the return must outpace inflation. Funds with a focus on crypto may invest in currencies and companies operating on the crypto market.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Join the mining or validating process to earn rewards for your work.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The coins can be lent or added to a liquidity pool. A trader can instantly begin crypto trades for a particular currency in a liquidity pool, which serves as a digital currency vault. You will be compensated with interest or transaction fees in this case.\n<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>It is vital to review the withdrawal policies before purchasing. For instance, they may include a restriction on the daily withdrawal amount. The official websites' <strong>guides<\/strong> are where this information is often gathered. It is important to thoroughly check the requirements for registration and withdrawal while choosing <strong>crypto exchanges<\/strong>. Giving priority to controlled, sizable, and well-known resources is ideal. Using exchanges that provide an extensive range of tools is the best choice.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":988,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/02\/Phone-682x1024.png\" alt=\"\" class=\"wp-image-988\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading -->\n<h2 class=\"wp-block-heading\">Steps required to start investing in crypto.<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In any way, <strong>cryptocurrency transactions<\/strong> go via the central bank of your country, but it does not restrict you from freely transforming it into various tokens.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Pick an exchange. It is advised to select a reputable exchange that has been around for a while on the global market.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li> Register. Your credentials and verification information\nwill be required.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>At the next step, you will require common money (US dollars, for example), which must be used to top up your exchange account in order to purchase any cryptocurrency.\n<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Choose the token you wish to obtain. It is strongly advised to gain as much knowledge as you can about it to prevent financial losses.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>After buying your tokens, they will be stored in a digital wallet with all the additional information required to access them. The wallet itself may be external or be the one hosted on the exchange you are using.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:heading -->\n<h2 class=\"wp-block-heading\">What amount of money is required to start buying&nbsp;cryptocurrency?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The quantity of money required may vary depending on the sort of coin you plan to purchase. They can vary widely in price. We believe that our guidance will make it easier for newcomers to start making money by investing in cryptocurrencies.<\/p>\n<!-- \/wp:paragraph -->","post_title":"How to start investing in crypto?","post_excerpt":"How to invest in cryptocurrency? Unlock the potential of crypto with this in-depth guide.","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-to-start-investing-in-crypto","to_ping":"","pinged":"","post_modified":"2023-05-04 11:06:51","post_modified_gmt":"2023-05-04 11:06:51","post_content_filtered":"","post_parent":0,"guid":"http:\/\/78.47.81.216\/?p=985","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":511,"post_author":"7","post_date":"2022-11-18 12:41:13","post_date_gmt":"2022-11-18 12:41:13","post_content":"<!-- wp:image {\"id\":512,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2022\/11\/blog5-1024x576.jpeg\" alt=\"\" class=\"wp-image-512\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p id=\"36ec\">If you\u2019re in trouble choosing a perfect crypto wallet for start, we are here to help you compare the two most popular services. Trust Wallet and MetaMask are easy-to-use virtual wallets for storing, sending and receiving digital currencies, but with their own unique aspects. Find out which one suits you better!<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"da06\"><strong>What is Trust Wallet<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"8f3e\">Trust Wallet is a very accessible and secure wallet with a user-friendly interface. Registration usually takes up a few minutes. Trust Wallet is open-source, so its developers usually fix any issues quite quickly.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"d1ef\">Trust Wallet gives access to 4,5 million (!) kinds of digital assets on more than 60 blockchains, such as Ethereum, Polygon, BNB, and blockchains used by various dapps and games. It also offers features like staking and token swap.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"340f\"><strong>What is MetaMask<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"83ca\">MetaMask is an easy-to-use Ethereum wallet, designed for those who have never used any crypto wallet before. Creating a MetaMask wallet also takes a few minutes. Note that during the registration you will get a secret phrase \u2014 save it, as it is the only key to restore your password.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"394b\">MetaMask has a mobile app, and is also compatible with web browsers like Brave and Chrome, allowing users to connect their wallets to various blockchain games. MetaMask supports all tokens on the ERC20 blockchain, so it can store only tokens based on the Ethereum network. It is equipped with an inbuilt token swap feature, too.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"35af\"><strong>Let\u2019s compare!<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":513,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image aligncenter size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2022\/11\/blog-6-1.png\" alt=\"\" class=\"wp-image-513\"\/><figcaption class=\"wp-element-caption\">https:\/\/community.metamask.io\/t\/storage-limit-issue-with-metamask\/2602<\/figcaption><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p id=\"9bfc\"><strong>Summing it all up<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"69f3\">Trust Wallet and MetaMask are simple crypto wallets which will perfectly suit beginners. They have similar fundamental functionality, but are different in some aspects that make them unique. MetaMask is more focused on having a modern user interface, while Trust Wallet is more of a simple wallet with a robust API.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"8513\">Both of them are hot wallets (connected to the internet), which makes them not very suitable for long-time storage of large amounts of cryptocurrency. When selecting your first wallet, first think of the currencies you will use and the preferable device to set the wallet on. As for other things, you will easily get used to them during your crypto experience!<\/p>\n<!-- \/wp:paragraph -->","post_title":"Trust Wallet vs MetaMask: the difference, advantages and downsides","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"trust-wallet-vs-metamask-the-difference-advantages-and-downsides","to_ping":"","pinged":"","post_modified":"2022-12-19 09:37:35","post_modified_gmt":"2022-12-19 09:37:35","post_content_filtered":"","post_parent":0,"guid":"http:\/\/78.47.81.216\/?p=511","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":869,"post_author":"7","post_date":"2023-01-25 16:33:16","post_date_gmt":"2023-01-25 16:33:16","post_content":"<!-- wp:image {\"id\":870,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/image-30-1024x576.png\" alt=\"\" class=\"wp-image-870\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>Since the beginning of 2022, cryptocurrencies have suffered a brutal comedown, losing $2 trillion in value after a massive rally in 2021.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The global cryptocurrency market capitalization today is $1.06 trillion, almost a -40% change one year ago. Overall crypto trading volumes fell from nearly $500 billion in May 2021 to almost $200 billion in December 2022.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The two most popular cryptocurrencies are also struggling: Bitcoin plummeted by 70% from its highest peak of $64,000 in 2021, while Ethereum lost two thirds of its value since its all-time-high of nearly $3500.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Why is this <a href=\"https:\/\/blog.alphaguilty.io\/how-to-survive-a-bear-market\">bear market<\/a> different?<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The crypto and <a href=\"https:\/\/blog.alphaguilty.io\/vempire-defi-makes-investors-fall-down-the-crypto-rabbit-hole\">DeFi<\/a> market with multiple firms, exchanges, dApps, trading platforms and other business has become as interconnected as ever. That\u2019s why, in 2022 we witnessed a series of interrelated events, when one crisis affected the rest of the market.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>One of the most bright examples is FTX: its bankruptcy dragged down crypto prices and operations of many crypto and NFT firms that had connections with this exchange, once second largest in the world. Among the exposed companies \u2014 BlockFi, Gemini, Kraken, Crypto.com and even Binance, which suffered reputational and financial losses.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Also, this <a href=\"https:\/\/blog.alphaguilty.io\/how-to-survive-a-bear-market\">bear market<\/a> is notable for the destabilization of\u2026 stablecoins. The 2022 year was a collapse for TerraUSD (UST), an algorithmic stablecoin which was supposed to be pegged one-to-one with the US dollar, but lost its peg, bringing down its sister token LUNA. This sent shockwaves through the stablecoin industry, and made investors doubt whether other fiat-pegged coins could collapse too.\u00a0<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>How was it during the previous crypto winter?<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The last prolonged <a href=\"https:\/\/blog.alphaguilty.io\/how-to-survive-a-bear-market\">bear market<\/a> occurred between 2017 and 2018, when Bitcoin and other cryptocurrencies slumped sharply after a steep climb. In the end of 2017, the dominant cryptocurrency reached its first all-time-high (nearly $20,000), but lost most of its value during the next several months.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The crypto market then was awash with initial coin offerings (ICO), a type of crowdfunding that wears a negative label to this day. Investors poured money into multiple crypto ventures that were literally everywhere, but the vast majority of those projects ended up failing.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Most experts agree that the 2017-2018 crash happened largely due to the overhype around crypto. At that time, few people realized the importance of checking projects or at least reading their whitepaper, if there were any, becoming an easy prey for scammers. Luckily, the situation is completely different today.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Can this crypto winter be the last?<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The crypto market of 2022-2023 is much more rapid and flexible than a few years ago. And has more investors\u2019 trust as well. While major cryptocurrencies are having hard times, smaller coins like XRP, Polkadot and BNB are on the rise. We also have the NFTs, which are gaining more and more attention from big companies like Nike, Adidas and Starbucks, and can serve as a good tool to diversify your portfolio.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It\u2019s not that bad with Bitcoin, too: in the beginning of 2023, BTC\u2019s price has crossed the psychological mark of $20,000 and is slowly growing to $23,000. Hopefully, this crypto winter will be not as cold as the previous one, and traders will use this experience to develop some useful strategies for the next bear markets.<\/p>\n<!-- \/wp:paragraph -->","post_title":"Case Study: Is Bear Market Of 2022 The Worst We've Seen So Far?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"case-study-is-bear-market-of-2022-the-worst-weve-seen-so-far","to_ping":"","pinged":"","post_modified":"2023-02-28 13:58:18","post_modified_gmt":"2023-02-28 13:58:18","post_content_filtered":"","post_parent":0,"guid":"http:\/\/78.47.81.216\/?p=869","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"likes":"9","lang":"en","translations":{"en":1101,"ru":1458},"pll_sync_post":[],"_links":{"self":[{"href":"https:\/\/blog.ag.qubiq.cc\/index.php?rest_route=\/wp\/v2\/posts\/1101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.ag.qubiq.cc\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.ag.qubiq.cc\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.ag.qubiq.cc\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.ag.qubiq.cc\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1101"}],"version-history":[{"count":2,"href":"https:\/\/blog.ag.qubiq.cc\/index.php?rest_route=\/wp\/v2\/posts\/1101\/revisions"}],"predecessor-version":[{"id":1106,"href":"https:\/\/blog.ag.qubiq.cc\/index.php?rest_route=\/wp\/v2\/posts\/1101\/revisions\/1106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.ag.qubiq.cc\/index.php?rest_route=\/wp\/v2\/media\/1104"}],"wp:attachment":[{"href":"https:\/\/blog.ag.qubiq.cc\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.ag.qubiq.cc\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.ag.qubiq.cc\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1101"},{"taxonomy":"authors","embeddable":true,"href":"https:\/\/blog.ag.qubiq.cc\/index.php?rest_route=%2Fwp%2Fv2%2Fauthors&post=1101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}