There are many peculiarities that separate crypto from TradFi (traditional finance), and that can be challenging when new traders enter the arena.
At the top of the list must be the concept of tokenomics, i.e., the demand and supply characteristics of a crypto project.
If you trade or invest in stocks, you generally just look at the performance of the underlying company or the wider economy’s impact on the market. In crypto, you must understand tokenomics.
What are tokenomics? Effectively, they are the micro—economy of a cryptocurrency project, dealing with the number of tokens in circulation, the maximum supply of tokens, and, where possible, the schedule of token unlocks (something we will deal with a bit later). So we can do simple math: The number of tokens multiplied by each token’s value will give you the total market cap of that project.
If you are learning how to trade cryptocurrencies, then looking at Bitcoin is the easiest example to understand tokenomics. Bitcoin ha
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