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Pi Coin Price Today Falls Below $1—Can PiDaoSwap Save It?

The crypto world is buzzing—but not in the ways Pi Network’s massive community had hoped. After soaring to nearly $3 just a month ago, Pi Coin has plunged below the much-watched $1 level, shaking confidence in the project’s future. For those tracking the Pi Network price, the recent dip has raised big questions. Some wonder, how much Pi Coin is worth now? Others are asking if PiDaoSwap—a new decentralized exchange built by the community—can help stabilize the Pi crypto value and push Pi Coin back on track. Let’s unpack what’s happening and what it could mean for the future of Pi Network. What Happened to Pi Network Value? Pi Coin Value Source: CoinMarketCap In February 2025, Pi Coin was on a roll. After Pi Network’s open mainnet launch, Pi Coin surged to an all-time high of nearly $3, capturing the imagination of over 60 million Pioneers worldwide. The hype was real—and so were the expectations. Fast-forward a few weeks, and the landscape looks dramatically different. The Pi price has slipped below $1, currently trading around $0.90. That’s a significant drop of over 70% from its recent high. Community members are worried, traders are skeptical, and the crypto world is asking many questions. Why the sharp fall? There are a few key factors: Increased supply: As more Pi tokens enter circulation, the growing supply has put downward pressure on Pi coin value in USD terms. The enclosed mainnet: Pi Network’s decision to remain in an enclosed mainnet phase, where only KYC-verified users can transfer Pi, has limited liquidity and slowed broader adoption. All this uncertainty has led to a steep decline in both Pi price and Pi Network value, leaving many to wonder whether Pi Coin has what it takes to recover. The Community Reacts: Frustration and Determination As expected, Pioneers are feeling the heat. Many early adopters who believed in the long-term potential of Pi Coin are frustrated by the drop. But this is no ordinary community. Instead of sitting back, Pi Network’s army of supporters is taking matters into their own hands. Enter PiDaoSwap, a decentralized exchange (DEX) designed to give the power back to the Pioneers and stabilize the Pi Network value. What Is PiDaoSwap? PiDaoSwap is a community-driven DEX built specifically for the Pi Network. Its purpose? To create a decentralized and transparent platform where Pi Coin holders can trade peer-to-peer, without relying on centralized exchanges that might manipulate prices. PiDaoSwap was created by a group of blockchain developers from Canada. Here’s why PiDaoSwap could be a big deal: It enables true price discovery for Pi Coin, based on real trading activity within the Pi Network. It helps prevent price manipulation by cutting out middlemen and bots often found on external platforms. It increases utility and liquidity, making Pi Coin easier to trade and potentially more valuable. PiDaoSwap is not an official project from Pi Network’s Core Team, but it has garnered a lot of support from the community. It’s a project by Pioneers, for Pioneers. Can PiDaoSwap Boost Pi Coin Value? This is the million-dollar question. PiDaoSwap is being positioned as the solution to Pi Coin’s price instability, offering a fair and decentralized alternative to exchanges. Here’s how it could influence Pi price and Pi Network value moving forward: 1. Fair Price Discovery Right now, Pi Coin’s price varies widely across platforms. With PiDaoSwap, prices are set by real users trading real Pi Coins, not speculative IOUs. That could result in a Pi price that better reflects the true demand for Pi Coin. 2. Increased Trust and Confidence If PiDaoSwap delivers on its promises, it could restore confidence in Pi Coin. A trustworthy, community-governed DEX gives Pioneers a reason to believe that the Pi Coin value is being determined fairly and transparently. 3. More Liquidity, More Utility A vibrant DEX makes Pi Coin more useful. Instead of holding Pi with no easy way to exchange it, users can trade directly on PiDaoSwap. This added liquidity could increase the Pi value over time. Challenges Ahead for PiDaoSwap and Pi Coin While PiDaoSwap offers hope, it’s not a silver bullet. Several challenges remain: Adoption: Will enough users trust and use PiDaoSwap to create meaningful liquidity? Regulatory Hurdles: DEXs can attract scrutiny, and PiDaoSwap will need to navigate compliance issues carefully. Core Team Cooperation: PiDaoSwap is awaiting final approvals to launch fully on mainnet. Delays could stall momentum. Despite these challenges, many in the Pi Network community see PiDaoSwap as a necessary step toward realizing the true potential of Pi Coin. What’s Next for Pi Coin and PiDaoSwap? The coming weeks are critical. If PiDaoSwap successfully launches and gains traction, we could see Pi price stabilize—or even rise—back above the $1 mark. Some analysts are cautiously optimistic that Pi Coin could reclaim the $1.20 to $2 range if confidence returns. On the flip side, if PiDaoSwap struggles to gain adoption or if broader issues in the Pi ecosystem aren’t addressed, Pi Coin’s troubles could deepen. The Pi Network value depends not just on tech innovations like PiDaoSwap but also on transparency, community trust, and wider exchange listings. Final Thoughts Pi Coin falling below $1 was a wake-up call for the Pi Network community. But in true Web3 spirit, Pioneers are rallying to create decentralized solutions like PiDaoSwap that return power to the people. Will it work? Time will tell. But if PiDaoSwap lives up to its promise, it could play a key role in stabilizing and boosting Pi Coin value, restoring faith in Pi price, and elevating Pi Network value as a whole. One thing is certain: the Pi Network price will depend on what the community does next. And right now, the community is building. Feeling ready? Register now and trade Pi Network (PI) on Bitget! 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.

Bitcoin’s Price Movement In Q1 - 2025: From Record Highs to a Bearish Trend and Future Outlook

In the first quarter of 2025, Bitcoin has seen sharp declines from its all-time high of $109,225 in January 2025 to recent lows near $76,700 in March 2025. This price movement has been driven by multiple factors, including macroeconomic uncertainty, institutional activity, geopolitical tensions, and market sentiment. This article will break down Bitcoin’s recent price trends, explain the causes of its decline, and analyze what the future may hold based on historical patterns and expert insights. Bitcoin’s Price Movement Timeline in Q1 2025 Bitcoin began 2025 on a high note, hitting an all-time high of $109,225 on January 20. This surge was fueled by optimism surrounding the second term of U.S. President Donald Trump, who was seen as crypto-friendly. However, within weeks, Bitcoin’s price began to show weakness. January 2025: Bitcoin Hits an All-Time High ($109,225) Amid Market Optimism Bitcoin began 2025 on an extremely bullish note, fueled by growing interest from institutional investors, expectations of pro-crypto policies from the Trump administration, and continued ETF adoption. On January 20, 2025, Bitcoin reached its all-time high of $109,225, driven by excitement over Trump’s second-term inauguration. The market was optimistic about potential U.S. regulatory clarity, as Trump had made multiple statements in support of crypto. Also, institutional investors like MicroStrategy, sovereign wealth funds, and hedge funds continued to accumulate Bitcoin, believing it to be a long-term store of value. However, Bitcoin’s rally was short-lived, as traders began taking profits and macroeconomic concerns started to weigh on risk assets. Early February 2025: The First Signs of Weakness – Bitcoin Drops to $92,500 By early February, Bitcoin faced its first major pullback as profit-taking kicked in. On February 5, 2025, Bitcoin briefly dropped to $92,500, marking a 15% decline from its peak. This decline was triggered by a mix of profit-taking from early investors and fears over U.S. trade policies, with Trump threatening new tariffs on various countries. Despite this dip, Bitcoin rebounded to $101,000, giving investors hope that the bull market was still intact. Late February 2025: Bitcoin Enters a Technical Bear Market ($86,000) The optimism was short-lived, as a series of market events pushed Bitcoin into bear market territory. On February 25, 2025, Bitcoin’s price plunged below $86,000, marking a 20% drop from its peak and officially entering a technical bear market. This drop was largely driven by mass liquidations in the crypto market, totaling $1.6 billion in 24 hours. Market sentiment turned extremely bearish, with investors moving away from risky assets due to fears of a global economic slowdown. Analysts at Cointelegraph and QCP Capital noted that institutional demand was starting to slow, raising concerns about Bitcoin’s long-term trajectory. End of February 2025: The CEX Hack Adds to Bitcoin’s Troubles ($83,500) Just when it seemed like the market was stabilizing, another major shock hit the crypto industry. On February 28, 2025, hackers stole $1.4 billion from one of the major CEXs. The incident shook investor confidence, leading to another wave of selling. Bitcoin’s price dropped to $83,500, with panic selling spreading across the market. Analysts warned that if the market couldn’t absorb the selling pressure from the hacked funds, Bitcoin could see further downside. March 2, 2025: A Temporary Rally as Trump Announces a U.S. Crypto Reserve ($93,000) On March 2, 2025, Bitcoin briefly surged to $93,000 following an announcement from President Trump regarding a potential U.S. crypto reserve. Trump hinted that the government would create a strategic reserve for Bitcoin and other digital assets, leading to a wave of buying. Some investors saw this as a major bullish catalyst, believing that government Bitcoin accumulation would push prices higher. However, analysts quickly warned that this rally might be short-lived, as details about the reserve were unclear. Their warnings proved correct, as the rally quickly faded, and Bitcoin resumed its downward trajectory. March 3-6, 2025: The Market Struggles to Hold $90,000 After the brief excitement over Trump’s crypto reserve announcement, Bitcoin struggled to maintain momentum. Over the first week of March, Bitcoin hovered around $88,000-$90,000, but failed to break past key resistance levels. Market uncertainty increased, with investors worried about U.S. trade conflicts, inflation, and Federal Reserve policies. ETF inflows declined significantly, with $1.1 billion in outflows from Bitcoin spot ETFs, signaling that institutional investors were reducing their exposure. March 7, 2025: The U.S. Crypto Reserve Announcement Disappoints Investors ($84,000) On March 7, 2025, Trump officially signed an executive order to create a Strategic Bitcoin Reserve. However, the details disappointed the market. Specifically, the reserve would not involve government Bitcoin purchases but instead consist of Bitcoin seized from criminal activities. This was far from the bullish catalyst investors had hoped for. As a result, Bitcoin’s price dropped 6% to $84,000, as traders sold the news. March 10-11, 2025: Bitcoin Plummets Below $80,000, Testing $76,700 By March 10, Bitcoin’s price collapsed further, breaking below key support levels. Bitcoin hit a four-month low of $79,170, as selling pressure intensified. By March 11, Bitcoin touched $76,700, marking its lowest level since November 2024. Analysts predicted that Bitcoin could retest support at $70,000, depending on institutional activity and macroeconomic conditions. March 12, 2025: A Conflict Suspension Arrangement Sparks Temporary Recovery ($83,000) On March 12, 2025, a breakthrough in conflict suspension agreement in a high-tension zone sent global markets into positive territory, helping Bitcoin recover to $83,000. Investors briefly turned optimistic, hoping that reduced geopolitical tensions would stabilize financial markets. However, analysts warned that this was not a sign of a full recovery, as major risks remained. For instance, retaliatory tariffs, U.S. trade conflicts, and inflation concerns continued to threaten Bitcoin’s stability. Some experts believe that Bitcoin could still correct to $75,000 if global trade tensions escalate further. The downward trend has left traders wondering: Is Bitcoin’s bull market over, or is this just a temporary correction? Factors Contributing to Bitcoin’s Price Decline Several key factors have contributed to Bitcoin’s sharp drop in 2025, ranging from macroeconomic events to regulatory pressures and investor sentiment shifts. While some declines were triggered by specific events, others were caused by broader financial trends. This section provides a detailed breakdown of the most important factors that have driven Bitcoin’s price downward in recent months. 1. U.S. Federal Reserve Policies One of the biggest influences on Bitcoin’s price in early 2025 has been the U.S. Federal Reserve’s monetary policy. The Federal Reserve’s decisions on interest rates significantly impact risk assets like Bitcoin. When interest rates are low, investors seek higher-yielding assets, such as stocks and cryptocurrencies. However, when rates are high—or expected to remain high—investors shift toward safer investments like U.S. Treasury bonds and gold. Many analysts and traders expected the Fed to cut interest rates in early 2025, which could have provided a boost for Bitcoin’s price. However, due to ongoing inflation concerns and economic uncertainty, the Federal Reserve announced in February 2025 that it would hold off on rate cuts for the foreseeable future. Following the Fed’s announcement, traditional financial markets experienced a pullback, with the S&P 500 and Nasdaq both declining. As a result, Bitcoin and other cryptocurrencies followed suit, as investors rotated their funds out of speculative assets. 2. Global Trade Tensions and U.S. Tariffs Bitcoin’s decline has been closely linked to trade tensions initiated by the Trump administration. In February 2025, the U.S. imposed new tariffs on imports from various countries, sparking fears of a global trade war. Markets responded negatively, as investors became concerned about economic instability. Bitcoin, often considered a risk-on asset, tends to perform poorly in times of economic uncertainty. As tensions between the U.S. and its trading partners escalated, investors moved their money away from volatile assets like Bitcoin to safer assets. Investors, uncertain about the economic landscape, have sold off Bitcoin along with stocks, contributing to the price decline. Adding to this uncertainty, by March 2025, there were threats of retaliatory tariffs against the U.S. This led analysts to predict that Bitcoin could correct to $75,000, as continued trade conflicts could keep market sentiment weak. 3. Institutional Profit-Taking and Liquidations After Bitcoin hit its record high of $109,225 in January, many institutional investors locked in profits. This led to increased selling pressure, causing Bitcoin’s price to decline. The initial sell-off led to a chain reaction of liquidations in the derivatives market. On February 25, 2025, over $1.6 billion worth of leveraged positions were liquidated within 24 hours. When large liquidations occur, traders using leverage are forced to sell their Bitcoin, further driving down the price. 4. ETF Outflows and Institutional Demand Slowdown The approval of Bitcoin spot ETFs in late 2024 was a key catalyst for Bitcoin’s surge to $109,000. However, by February 2025, the trend reversed, with institutional investors withdrawing their funds. Bitcoin ETFs saw net outflows of $516 million on February 24 alone, a sign that institutional investors were pulling back. Over the next six consecutive days, ETFs recorded withdrawals totaling $2.1 billion. While Bitcoin had benefited from ETF inflows earlier, the reversal in sentiment led to a significant price drop. 5. Regulatory Uncertainty Regulatory developments continue to weigh on Bitcoin’s price. While the Trump administration has taken a more crypto-friendly stance, legal uncertainties remain. At first, many believed that Trump’s pro-crypto stance would boost Bitcoin prices, but his administration’s actual policies have been mixed. The U.S. government’s announcement of a Strategic Bitcoin Reserve initially sparked optimism but later disappointed investors when it clarified that no new Bitcoin would be purchased, rather the Reserve would include only Bitcoin already confiscated from criminal cases. This led to a 6% price drop on March 7, as traders had expected stronger government support. 6. Market Sentiment and the Fear & Greed Index Investor psychology plays a massive role in Bitcoin’s volatility. The Crypto Fear & Greed Index, which measures market sentiment, dropped into the “Extreme Fear” zone after Bitcoin fell below $80,000. Historically, extreme fear often signals buying opportunities, but it also indicates uncertainty and caution among investors. 7. The CEX Hack and Security Concerns On February 28, 2025, hackers stole $1.4 billion from the world’s second-largest crypto exchanges. This event shook investor confidence, raising concerns about the security of crypto assets. Bitcoin’s price fell below $80,000 as panic selling increased. As hackers liquidated stolen Bitcoin, further selling pressure was added. Security concerns have always been a challenge for Bitcoin, and major exchange hacks often trigger short-term market downturns. Is Bitcoin Poised for a Rebound? Despite the recent downturn, Bitcoin has shown resilience in past market cycles. Many analysts believe that Bitcoin remains in a long-term bull market, with corrections serving as healthy pullbacks before further gains. Here are some factors that could drive Bitcoin’s recovery: 1. Bitcoin’s Strong Historical Recovery Patterns Bitcoin has rebounded 157% in 2023 and 119% in 2024, showing its ability to recover after downturns. Previous cycles suggest that Bitcoin experiences sharp pullbacks before reaching new all-time highs. If the $70,000-$75,000 range holds as support, Bitcoin could start climbing back toward $100,000+ later in 2025. Bitcoin has a history of boom-and-bust cycles, typically following a pattern of sharp corrections before continuing its long-term upward trajectory. If history repeats itself, Bitcoin could regain momentum in the next 12 to 24 months. 2. Institutional Accumulation Many institutions, including MicroStrategy and sovereign wealth funds, have continued to acquire Bitcoin. Institutional investors looking for long-term value may view Bitcoin’s current price as a buying opportunity, which could stabilize the market and push prices higher. Moreover, the percentage of long-term Bitcoin holders remains high, indicating strong conviction in its future value. Historically, when long-term holders stop selling, Bitcoin tends to rebound within months. 3. The U.S. Crypto Reserve and Potential Policy Shifts If the U.S. government takes further steps toward officially recognizing Bitcoin as part of its financial strategy, it could drive new institutional adoption. Even though the initial reserve announcement fell short of expectations, future developments could reignite investor optimism. 4. Growing Mainstream and Government Adoption The U.S. Strategic Bitcoin Reserve, despite its disappointing start, could pave the way for larger government Bitcoin purchases in the future as more U.S. states and global institutions are considering adding Bitcoin to their reserves. If government adoption increases, Bitcoin’s market cap could rise by $460 billion, according to Sygnum Bank. 5. Federal Reserve Rate Cuts While the Fed has paused interest rate cuts for now, any future signs of easing monetary policy could make Bitcoin more attractive as an inflation hedge. Lower rates tend to increase liquidity in financial markets, benefiting riskier assets like Bitcoin. 6. Supply and Demand Dynamics With Bitcoin’s fixed supply of 21 million coins, long-term demand is expected to outpace supply. As more investors and institutions accumulate Bitcoin, scarcity could drive prices higher. The Road Ahead: Caution and Opportunity Bitcoin’s current market behavior suggests both risks and opportunities for investors. Bitcoin’s recent decline is not unusual and follows historical market cycles. While short-term risks remain, many experts believe this is a temporary correction, not the end of Bitcoin’s bull market. Factors such as institutional adoption, macroeconomic shifts, and regulatory clarity will play crucial roles in determining Bitcoin’s next move. For now, traders and investors should stay informed, manage risk carefully, and watch for key signals—such as institutional accumulation, ETF flows, and macroeconomic developments—that could indicate the next big move in Bitcoin’s price. Will Bitcoin drop further, or is it gearing up for another rally? Only time will tell. But one thing remains certain—Bitcoin’s journey is far from over. 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.

Crash Course on Spot Martingale

What is Spot Martingale? Many of you must have heard of the Martingale strategy, which originated from betting. For example, a gambler implementing the Martingale strategy in a game of Hi-Lo would double their bet after every loss until they start winning. Bitget Spot Martingale derives from the core idea of the traditional Martingale strategy. The trading bot buys the dip in batches, then sells all positions at a higher price, while significantly reducing the average price by increasing the size of the buy order with each dip. Bitget's Spot Martingale executes a buy order every time the price drops by a certain percentage. The buy order size increases in geometric mode (for example, 1, 2, 4, 8, 16...) If the bot is set to buy when the price drops by 1%, batch purchases are made when the price drops to 99%, 98%, 97%, 96%, 95% ... of the entry price. After the price has dropped by 5%, the average price of the position is 95.97% of the entry price. Then, a moderate price increase of 1.02% would be enough to cover costs, significantly reducing the risk. In a normal grid strategy, when the price drops by 5%, it needs to rise to about 99% of the initial price to break even, which means increasing by 4.2%. The underlying logic of Spot Martingale's profitability is straightforward. Select a high-quality asset and as long as its value does not plunge to zero, you can profit. Spot Martingale examples The Martingale strategy buys when the price goes down to reduce the average cost of investment. It is suited for users who have a positive long-term outlook on a coin but difficulty in determining the entry timing who do not wish to miss out on the opportunity, or simply for users who want to withstand floating losses. For example, if you buy a coin at 50 USDT with the belief that the price will reach 100 USDT after some possible drops, then you can set the bot to buy more whenever the price drops by 10 USDT. When the price hits 100 USDT, you will hold more assets at a lower average price. • Normal Spot Martingale: Best for users who are bullish on the market but expect the price to drop before rising. After placing the base order, more safety orders can be placed at the pre-set intervals and multipliers. • Spot Reverse Martingale: Best for coin holders who are bearish on the market but worried that the market may rebound first. They can sell part of their holdings and continue to sell if the price increases to maximize their profit. Advantages of Spot Martingale Buy the dip with precise timing Martingale bots allow you to buy at a lower price during short-term downtrends in the market. The more orders are made, the lower the average cost, and the greater the profits on a market rebound. Customize parameters to control your risk Traders can adjust the parameters of the Martingale bot according to their own trading habits and risk appetite, including single take-profit target and safety order multipliers, so that the risk is controlled. Using bots lowers the entry threshold for traders who are not as experienced. In the AI mode, there are three types of trading styles for users to choose from: Aggressive, Balanced, and Conservative. Users can select the style that aligns with their needs. Seizing oversold opportunities and trigger signals Bitget's Martingale bot is the first of its kind that really suits crypto traders' needs. Thanks to its strong technical indicator research and development capability, Bitget offers exclusive features such as conditional entry and alert triggers to allow users to effectively seize market rebound opportunities and achieve greater profits. In the future, Bitget will release more diverse strategy trigger signals to satisfy investors' needs. Spot Martingale vs Spot grid trading The main difference is that a Spot Martingale buys in batches and sells all at once while a spot grid bot buys in batches and sells in batches. Martingale bots increase the order size when the market goes downwards, starting from small order sizes. Spot grid bots typically open larger positions based on the investor's parameters, using around half of the initial investment. Spot grid bots earn more profit than Martingale bots when the price increases, but also suffer larger drawdowns when the price decreases. Martingale bots have a better capital utilization rate than spot grid bots, and will generate more profit in volatile markets. In summary, the pros and cons of Spot Martingale and spot grid bots are as follows: Trend return Spot martingale < spot grid Shock arbitrage income Spot martingale > spot grid Risk Spot martingale < spot grid The Spot Martingale bot helps investors buy the dip in batches at the pre-set percentages, minimizing the risk. With this high level of safety, as long as the selected assets are of high quality, the asset price will rebound and gain profit even if there is a drawdown in the short term. Disclaimer Spot Martingale is a trading tool. The abovementioned information should not be considered financial or investment advice from Bitget. Profits from Spot Martingale bots may be impacted by one-sided market conditions or improper price intervals. You can adjust your Spot Martingale bots according to market conditions.

Crash Course on Spot Grid: What is Spot Grid Trading?

App Version Suitable for volatile markets with upward price fluctuations, spot grids let users sell high and buy low for short-term arbitrage. However, when the market experiences a downward trend, it will bring a corresponding risk of loss. 1. What is spot grid trading? Spot grid is an automated trading bot that buys low and sells high within a specific price range. Users can start running a bot after setting the range of the lowest and highest prices and the number of grids. A trigger can also be set where the bot starts running once the market reaches the trigger price. The bot will calculate the buy low and sell high prices for each grid to place orders. When the bot keeps doing this, users will be able to gain profits from the market volatility. To begin, select an underlying asset which can be BTC or any other cryptocurrency. Set a reasonable price range for the target, and form a grid by dividing the price range at regular intervals. The bot will buy when the grid decreases, and sell when the grid increases. See the image below (for example, BTC) As you can see, the spot grid strategy will profit from price fluctuations. Compared to just holding onto an asset, grid trading can generate significantly higher profits in volatile markets. Spot grid trading is profitable when the price fluctuates within a certain price range. 2. Spot grid applications The core of the spot grid strategy is short-term arbitrage, achieved by buying low and selling high. It is most effective in volatile markets where there are frequent price fluctuations. However, when the market experiences a downward trend, it may result in corresponding losses. • Spot forward grid: when the price is estimated to rise with market fluctuations. The bot will buy the crypto, then sell them when the price rises, eventually gaining more stablecoins through arbitrage. • Spot reverse grid: when the price is estimated to drop with market fluctuations. The bot will sell the crypto, then buy them back when the price drops, eventually gaining more coins through arbitrage. When running a spot grid bot, you may find that the bot will pause if the market price goes beyond the highest or lowest price of your range. It will only resume when the market price falls within the grid range. Profitable opportunities may be missed during the pause. 3. Spot grid features Advantages of spot grid trading • The basic principle of spot grid trading is buying low and selling high. By setting appropriate intervals and grid sizes, and matching them with corresponding funds and positions, buy orders can be placed in batches as the price drops, while sell orders can be placed in batches as the price rises. It is a trading strategy that profits from buying low and selling high repetitively due to price fluctuations. • Spot grid trading is a systematic approach that is independent of human analysis or the need to deeply understand market trends. Thus, no human decision-making is involved. Like a fishing net, this strategy capitalizes on price fluctuations within the grid intervals by buying low and selling high, taking advantage of the price differences through a repetitive circle. • Spot grid trading yields stable profitability and requires minimal skills or experience, making it ideal for inexperienced traders. Disadvantages of spot grid trading • The utilization rate for funds is relatively low, therefore the annual profit is limited. • Users may be worried about one-sided market conditions. If there is a sudden rise on the market price, the spot grid trading profits will be lower than the profits from a fully invested position, and also there is a risk of slippage. Conversely, if the market drops, there is a risk of being trapped or the grid being broken. • The high frequency of transactions also leads to an increase in fees. In conclusion, any trading bots may have their pros and cons. You must fully understand the strategies and instruments to be able to assess the risks independently before trading. Disclaimer Spot grid is a transaction tool. The above-mentioned information should not be considered as financial or investment advice from Bitget. Profits from spot grid trading may be impacted by one-sided market conditions or improper price intervals. You can adjust your spot grid trading strategy according to market conditions. Your use of this tool is subject to your unconditional acceptance of all of Bitget's terms and conditions. You should be fully aware of the risks associated with cryptocurrency investments and proceed with caution. You agree that all investments on Bitget.com reflect your true investment intent, and you unconditionally accept the potential risks and gains of your investment decisions.

A Comprehensive Guide to the Martingale Strategy

TL;DR The Martingale strategy is a popular investment strategy in the crypto market but is also often used in traditional investment and risk management. Bitget has taken the core concept of the Martingale strategy and combined it with the characteristics of the crypto industry, leveraging automated trading tools and AI bots to create a Martingale bot that is more suitable for the crypto market. Bitget provides spot Martingale and futures Martingale trading bots in various AI modes that users can access with just one click. Historical Background of the Martingale Strategy This strategy was originally used in speculative games, such as the higher-lower guessing game. If you lose a round, you bet double the chips that you bet for the previous round and keep increasing the bet until you win. Let's say a player has lost US$1 in the first round of the game. They then double the chips for the next round to US$2. If the player wins in the second round, their next bet is “reset” to US$1, and if the player loses, their next bet is doubled to US$4. No matter how much is lost in the last round, as long as the next round is won, the player will recover all previous losses and make a profit. In other words, using this strategy will theoretically result in a 100% win rate. However, it also has some obvious drawbacks. First, the strategy assumes that the player has unlimited money and time, which is obviously not the case. Second, the strategy ignores risk and probability in the game. Even if a player increases the amount of their bets with the Martingale strategy, it is still possible to lose several rounds in a row and eventually run out of money. Nonetheless, the Martingale strategy still offers some valuable ideas for risk management, and its high win rate expectation is favored by professional investors. Introducing the Bitget Martingale Bot Bitget has taken the core concept of the Martingale strategy and combined it with the characteristics of the crypto industry, leveraging automated trading tools and AI strategies to create a Martingale bot that is more suitable for the crypto market. Bitget is dedicated to helping investors realize the maximum returns on investment with a guaranteed user experience. We will now go over the Bitget Martingale bot in detail to help you understand how it works. Let’s take the spot Martingale bot as an example. It executes a buy order every time the coin price drops by a certain percentage. The buy order size increases geometrically (1, 2, 4, 8, 16...). If the bot is set to buy when the price drops by 1%, batch purchases are made when the price drops to 99%, 98%, 97%, 96%, 95%... of the entry price. After the price has dropped by 5%, the average price of the position is 95.97% of the entry price. Then, a moderate price increase of 1.02% would be enough to cover costs, significantly reducing the risk. Simply put, the Martingale strategy significantly reduces the average cost of a position by buying in batches at low price points and investing more money in each point so that when the price rebounds, traders can make a profit from this market reversal. The Benefits of Using Bitget Martingale Bots Accessible AI mode Bitget offers three different types of AI bots for different investor portfolios and risk appetites: Conservative, Balanced, and Aggressive. The parameters recommended by the AI bots are calculated based on market history and price volatility with Bitget's backend algorithm, an authoritative and reliable reference to help maximize trader profits. Refer to Crypto Investments Made Easy: Bitget's AI-Powered Trading Bots for more information about AI bots. The infinite loop model seizes every opportunity to make a profit Bitget's Martingale bots can be used in Infinite Loop mode, meaning the bot will automatically move to the next sell order after each sale without you needing to reset the parameters. The bot will run in perpetuity as long as there are sufficient funds. If users want to customize the number of cycles, they can manually set the parameters to customize the number of times the bot runs. For example, if the number of cycles is set to 5, the bot stops after the fifth time it takes profit. Seize oversell opportunities with triggers and accurately take advantage of any market Thanks to its strong technical indicator research and development capability, Bitget offers exclusive features such as conditional entry and alert triggers to allow users to effectively seize market rebound opportunities and achieve greater profits. How to Use the Bitget Martingale Bot Bitget Martingale bots are currently supported in both the spot and futures markets. Spot Martingale bot Bitget offers Normal and Reverse spot Martingale bots. Normal spot Martingale bots are suited for users who are bullish on the market but expect the price to drop before rising. After placing the base order, more safety orders can be placed at the pre-set intervals and multipliers. Reverse spot Martingale bots are suited for coin holders who are bearish on the market but worried that the market may rebound first. They can sell part of their holdings and continue to sell if the price increases to maximize their profit. Follow the steps below to start trading with a Martingale bot: Log in to your Bitget account and select Bots from the top navigation. Select Spot Martingale, then select your desired trading pair, such as BTCUSDT"> BTC/USDT. Users can select the parameters recommended by the AI to get started with ease. AI mode provides three different strategies: Conservative, Balanced, and Aggressive. Users can choose the appropriate bot according to their asset allocation and risk appetite, enter their investment amount, and select Use to start running the bot. If you are familiar with the crypto market and crypto investing and prefer to customize the parameters, you can select Manual to adjust your Martingale bot parameters. We offer the following basic parameter settings: Price action (up/down): After the base order is filled, the first safety order will be placed once the price increases or drops by a certain amount or percentage. Users can input a percentage or a value in this field. The percentage represents the price change percentage as against the base order, while the value represents a price difference as against the base order. Max safety orders: The max number of safety orders for a position (excluding the base order). Base order size: The amount of your first order when opening a position. This value and the base order amount multiplier will affect the price of subsequent orders. Target profit: When you have achieved your target profit after buying the dip and seeing the market reverse, you will take profit at this point and sell your position out. Sell at termination: When a normal Martingale bot is terminated, the base currency bought by the bot will be sold for the stablecoin. Buy at termination: When a reverse Martingale bot is terminated, the stablecoin bought by the bot will be sold for the base currency. Of course, you can also use more complex configurations by enabling advanced settings. We offer the following advanced parameter settings: Trigger price: Spot Martingale will be enabled when the marke t price reaches this preset price. TP calculation: You can take profit when your tota l trading volume or your base order trading volume reaches the corresponding target profit. Safety order price interval: Used to multiply the deviation percentage of the last safety order to calculate the deviation percentage of the new safety order. A higher value may lower capital utilization but may cover a larger price movement. Safety order multiplier: Used to multiply the trading value of the last order. For example, if the multiplier is 1.5, the new safety order amount will be 1.5 times the amount of the last safety order, and so on. Stop-loss: The price of the last stop-loss order. Cycles: The number of cycles the bot will run to take profit. For example, if the number of cycles is set to 5, then the bot stops after it takes profit for the fifth time. If set to infinite loop, the bot will run in perpetuity as long as there are sufficient funds. Select Create once you have set all the parameters. Your Martingale bot will be up and running right away! Futures Martingale bot Bitget offers Long Futures and Short Futures Martingale bots. Long futures Martingale bots are suited for users who are bullish on after-market but expect the price to drop before rising. After opening long for the base order, margin for long positions will be implemented at the pre-set intervals and multipliers. Short futures Martingale bots are suited for users who are bearish for after-market but expect the price may rebound first. After opening short for the base order, the margin for short positions will be supplemented at the pre-set intervals and multipliers. Futures Martingale bots provide three different strategies: Conservative, Balanced, and Aggressive. Users can choose the appropriate strategy according to their asset status and risk appetite. After making their selection, users can adjust the leverage and margin (the highest leverage currently supported is up to 125X) to satisfy their different risk appetites. After entering the required margin for the bot, select Create to start running the bot. You can also select Manual to enjoy a customized trading experience. Make sure you fully understand all the parameters. Keep an eye on your leverage multiplier and margin to avoid liquidation.

Bitget Bites (August 26, 2022)

The global market cap is standing at US$1.041 trillion, showing a 0.43% increase from yesterday but the 24-hour volume was down by 2.02% to US$64.01 billion. Our report on activities of the Spot Market and Futures Market are below: Spot Market Updates Bitcoin has been trading between US$21,459.98 and US$21,783.08 within the last 24 hours. As of 3:30 AM UTC, BTC price stands at US$21,532.59, which is a 0.16% increase compared to Ethereum’s 0.61% increase. There has also been a decrease (-1.07%) in the volume of our spot market. There has been a slight increase in the volume and price of altcoins over the past 24 hours, with some altcoins trading above the volume of US$1 billion, in order of market cap and volume we have BNB (+0.69%), XRP (+0.55%), and ADA (+1.70%). The highes t price and lowest price levels of BGB in the last 24 hours were US$0.16896 and US$0.16156, respectively. The Top 3 Gainers of The Day are Voyager Token (VGX), Terraclassic (LUNC), and Chromia (CHR). 1st Place VGXUSDT: Up by 48.73% Voyager Token is a cryptocurrency broker that provides investors with a trusted and secure access point to crypto asset trading. Voyager is built to serve both retail and institutional investors with a nigh-instant solution for trading crypto assets. With a current market cap of $106,252,492.27 and 24 hour trading volume of US$280,954.71, touching a low of US$0.2665 and a high of US$0.4490 in the past 24 hours, VGX is trading at a current market price of $0.3749. 2nd Place LUNCUSDT: Up by 20.05% Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its white paper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offers fast and affordable settlements. With a current market cap of $829,835,213.54 and a 24-hour trading volume of US$452,532.88, touching a low of US$0.000100401 and a high of US$0.000136925 in the past 24 hours, LUNC is trading at a current market price of US$0.000126507. 3rd Place CHRUSDT: Up by 11.82% Chromia is an open source public blockchain conceived of by Swedish company Chromaway AB. The Chroma token (CHR) was launched in May of 2019. The technology behind the Chromia blockchain is adapted from an earlier technology called ‘Postchain’, a solution provided by Chromaway AB for enterprise clients. With a current market cap of $108,011,009.48 and a 24 hour trading volume of US$387,678.12, touching a low of US$0.17097 and a high of US$0.19730 in the past 24 hours, CHR is trading at a current market price of $0.19191. Meanwhile, the Top 3 Losers include: NXDUSDT (-30.07%), ZBCUSDT (-24.83%) and TUSDT">NPTUSDT (-21.05%). Futures Market Updates Activities on Futures markets are slightly expanding with the Open Interests (OI) of all cryptocurrencies now recorded at US$4.56 billion, equivalent to a 0.44% increase from yesterday. The aggregated futures volume also saw a slight increase of 167.06% to US$673 billion in the last 24 hours. Bitcoin remained the most popular underlying asset for Futures traders and, obviously, the most liquid market: Bitcoin OI Dominance remained at 68% of the total OI, now standing at US$3.10 billion. The daily volume of Bitcoin contracts declined by 10.18% to US$160,585.70. The last cycle of funding rate (-0.0100%) demonstrates a potential mild buy signal. Bitcoin Long/Short Ratio reflects the market sentiment on this flagship coin, bearish at 44.76%/55.24%. Most BTC long ETFs locked in a small price increase, except for the highly anticipated ProShares’ Short Bitcoin Strategy ETF (BITI), which closed the day at US$35.70 from the opening price of US$36.20. Interesting Topics What Is Volatility? The Ultimate Bear Market Strategy: What You Need To Know About Shorting? Worried about what to do during Recession? A Lesson of Bulls and Bears market for crypto traders Follow Us For More Insights: Twitter | Telegram | LinkedIn | Facebook | Instagram

Blockchain101: Introduction to DApps

Ethereum was introduced in 2015. And only a few years later, the all-time high of Ethereum’s crypto, Ether(ETH), reached around $4800 USD. Unlike the Bitcoin network, Ethereum is not only a cash transfer system without intermediates. With an advanced function smart contract, it allows users to build decentralized applications (DApps) on the Ethereum Blockchain, an open public decentralized platform that no one person or group can control. In the following article, we will introduce what exactly DApp is and the future of it. Definition of a DApp DApps (Decentralized applications) are applications built on a decentralized Blockchain network that combine smart contracts and a front-end user interface. A smart contract is actually a computer program that can be executed automatically when the pre-set criteria is fulfilled, which is accessible and transparent. According to ethereum.org, a DApp has to fulfill the following requirements: Decentralized: DApps are run by thousands of nodes around the globe. No party can take control of it, including governments and the developers. Deterministic: The execution of DApps is not affected by any changes in the environment. Turing complete: DApps can perform any action given the required resources. Isolated: DApps are executed in an isolated situation. If a DApp has a bug, it won't affect the normal functioning of the Blockchain network. Sources: Programmer explain Benefits and Risks of DApps Why do we need a DApp? Imagine you were a gamer of an online game. If your account is hacked or banned by the game’s admins, you will lose all your hard-earned game assets. That’s the real experience of the founder of Ethereum, Vitalik Buterin. But DApps have no such worries, as DApps are run by distributed nodes around the globe which can not be changed or hacked easily. Here are the benefits and risks of running a DApp compared to a traditional application: BENEFITS Run 24/7 with zero downtime: Once the smart contract of a DApp is stored on the Blockchain, it will always be able to serve clients 24/7 automatically. An individual DApp can not be attacked by denial-of-service attacks, which is the most common risk faced by a traditional application. Unless someone raised the 51% attack towards the whole Blockchain, which is difficult to do so. Secure your privacy: If you open a Facebook account, you have to provide your personal information. You don’t need to provide a real-world identity to deploy or interact with a Dapp. Resistance to censorship: No single entity including the government and DApp developers can block users from submitting transactions, deploying and interacting with DApps, or reading data from the blockchain. But traditional applications like social media platforms, Twitter or Facebook have the right of permission to ban their users’ accounts, like Donald Trump. They may also access your personal information stored in the smartphone without your permission. Immutable and indisputable: The data stored on the blockchain is immutable and indisputable, rather than relying on a centralized authority. Users may not change the transaction record or other data that has already been launched to the public. Unlike traditional financial applications like PayPal, if the server is hacked, the transaction record may be changed or lost, which may not happen in DApps. RISKS Difficult to maintain: Compared to traditional applications, once a DApp is published, it is more difficult to maintain as the data is stored on the Blockchain which is immutable. Even if bugs or security risks are found, developers can’t fix it easily. Low efficient network: Currently, the Ethereum network can only process about 10-15 transactions per second. If too many DApps are run on the network, it will result in low efficiency of all DApps built on the Blockchain. High running cost: In order to ensure the security, integrity, transparency, and reliability of the Blockchain, it requires a time-consuming verification process called the proof of work. The expansion cost of DApps has become so huge. Difficult to create a user-friendly experience: It is difficult to set up a tool stack necessary to interact with the blockchain in a truly secure fashion. 4 most common use cases of DApps today DApps have become more popular in different industries, including Finance, Gaming and Digital Assets, Social and Entertainment, Businesses…more and more. De-Fi (Decentralized Finance) De-Fi (Decentralized Finance) refers to a financial system without centralized authorities, like banks or governments, to manage accounts and verify transactions on them, which act as an intermediate. De-Fi challenges traditional finance systems. With the De-Fi applications, the privacy and security of users are protected by the Blockchain technology. It allows users to carry out trustless transfers without worrying about the risk of violation. Examples of De-Fi Applications: Avalanche, Wrapped Bitcoin, DAI are available in Bitget Spot Trading. Game-Fi and NFTs Game-Fi is a new gaming model based on the Blockchain technology. The greatest feature of it is allowing users to earn crypto and non-fungible tokens (NFTs) that can be transacted on the market, so that they can make money while playing games. The games’ rules are completely transparent, the mechanism, trading system and reward system are clearly stated in the smart contract stored on the Blockchain, which is executed automatically and immutable. So that the property rights of gamers are completely protected, rather than controlled by gaming companies. Examples of Game-Fi DApps: Axis-Infinity, Sandbox, Decentraland are available in Bitget Spot Trading. Social and Entertainment Are you sick of advertisements on social media platforms? Are you worried that your data is being monitored and disclosed by tech giants like Meta? You have no such worries when you are using social and entertainment DApps. You don’t need to provide any personal information when you interact with them. You can completely do it anonymously. Your data is stored on the Blockchain safely. Not only that, you can earn crypto and non-fungible tokens (NFTs) that can be transacted on the market like game-fi through creating engaging content on the platform. Examples of Social and Entertainment DApps: Basic Attention Token (BAT) and Green Satoshi Token are available in Bitget Spot Trading. Business DApps increase the efficiency of businesses by creating a transparent and open environment. We have already seen DApps in the supply chain management, healthcare and pharmacy industries. Examples of Business DApps: Chainlink, EOS Dynasty are available in Bitget Spot Trading. 3 most popular Blockchain platforms for DApps Ethereum: Ethereum’s crypto ETH is now the second-biggest cryptocurrency by market cap after Bitcoin. The innovation of Ethereum is the smart contract function, which is the basic technology of DApps. Solana: Solana aims to provide users with a distributed ledger having higher scalability. The team also pays attention to the matter of security and decentralization. EOS: EOS is an efficient Blockchain platform for DApps with simple solutions for application hosting, executing smart contracts, and other operating systems. Disclaimer: All products and projects listed on this article are not endorsements, and are provided for informational purposes only.

Worried about what to do during Recession? A Lesson of Bulls and Bears market for crypto traders

Welcome to Bitget - the world’s fastest growing crypto derivatives trading platform. Bull and bear markets are just like the four seasons, they are natural phenomena. No one can avoid facing them in their entire investing life. What you can do during the recession is learn. To learn what kind of trading strategy can be applied in different market situations: bull and bear markets? They are entirely different. If you want to protect your portfolio, different investment decisions should be made. Our detailed guide covers the basics of the Bulls and Bears, tips for trading, and how people reacted in history. Content What is a bull market? What is a bear market? The history of bull and bear markets of Bitcoins The trading strategies in bull and bear markets What is a bull market? Three features of a bull market A longer period of upward movement of the market A thriving economy Low unemployment rate When a market is consistently rising, whether it is crypto, real estate or stock, it can be defined as a bull market. It is mainly determined by the investors’ emotions. Especially in the crypto market, if investors are confident in the market, investors are more willing to hold assets like crypto, stocks or real estate, which will lead to a bull market. As the rising market will attract more capital from other investors and lead to a positive cycle. But the bull market will not always last long. What is a bear market? Three features of a bear market A longer period of downward movement of the market A declining economy Increasing unemployment rate When a market is consistently declining, it can be defined as a bear market. Due to the loss of confidence in the market, investors want to sell their assets and switch to more secure assets like cash. When the supply is greater than the demand, it will lead to a crash in the market. When there is a bear market, it will lead to the escape of capital as people’s investment incentives are affected. Even if the bear market will not last long, it is difficult to estimate when the recovery will be. It is affected by the government's economic policy, investors’ emotions and confidence and the news or environment. The history of the bull and bear markets of Bitcoins Famous bull market period of Bitcoins From September 2010 to June 2011, Bitcoin rose from $0.06 to $36, then immediately dropped to $2.5 and never went below $2 again. From January 2016 to December 2017, Bitcoin started to rise slowly from $400 to $20,000, a 50 times increase. Due to the pandemic of 2020, central banks around the globe have issued additional fiat currencies and Bitcoin has reached its all-time high of more than 60,000 USD The highlighted signifies the bull market of Bitcoin. Source: Coingecko Famous bear market period of Bitcoins From January to July 2012, Bitcoin dropped from $7.08 to $4.22. Due to the attack from hackers, people were worried about the security of the Bitcoin network. From November 2013 to January 2015, it was called the crypto winter. Bitcoin’s all-time high was around $1,100 and the all-time low was $197.24. At that period, Silk Road, a famous online black market accepting Bitcoin to settle the payment was shutted down by the US government. The largest cryptocurrency plunged as low as $30,527 in May 2022. That’s down 50% from its November all-time high of $69,000. The highlighted signifies the bear market of Bitcoin . Source: Coingecko The crypto trading strategies in bull and bear markets Prices have been consistently rising during the bull market, while consistently declining during the bear market. Different trading strategies are required in different markets. Crypto trading strategies in bull markets In the bull market, going long and buying in are reasonable strategies. Buy crypto at an early time and sell it before reaching a peak. As no one knows when the bull market will end, some experienced traders go short at the peak as they foresee there will be a bear market. This trading strategy may not fit for junior investors as it involves a high risk. During the bull market, FOMO (fear of missing out)is common. It is an irrationa l trading action as people are afraid of missing a chance to profit from the bull market. The value of some crypto assets may be overrated. Crypto trading strategies in bear markets If you are not confident in the bear market, you should probably hold cash or stable coins to wait for the next bull market. Bitget Savings is an easy and secure way for users to grow their assets on Bitget. On Bitget Flexible Saving, you can start earning a stable interest by saving your money in stablecoins like USDT. From now onwards, users can deposit funds into any one of our Savings products and start earning interest every day. We are offering industry-leading returns, like DOT with 5.2% APR. You don’t have to lock up your savings for a long period of time. You can wWithdraw your assets at any time! If you have gone short before the bull market, you can still make a profit during the bull market. FUD (Fear, Uncertainty, and Doubt) is also common in the cryptocurrency market. The price is easily affected by some sudden news, like the relationship between doggie coins and Elon Musk. You may make rash decisions like leaving the market. Through financial planning and risk management plans, it may help you avoid one of the biggest traps investors fall into: making investment decisions based on emotion. If you are a long-term investor in crypto, believing in the potential of it, that may be the infrastructure serving billions of people in the future, HODL (Buy and Hold) is probably a reasonable strategy. The dollar-cost averaging (DCA) strategy is invented to deal with uncertainties in the market: By increasing their position bit by bit, investors are less susceptible to negative emotions and as a result less likely to make irrational decisions. It is suitable for investors who are not good at short-term trading but they focus on the investment potential of the crypto asset. You try to find undervalued crypto assets during the bull market and hold on to them for a long time. Now are you ready to invest in cryptocurrencies? If you’re a crypto newbie, you may not have time to watch the markets and do research on thousands of crypto. Copy trading may be a good fit for you. You can leverage other traders’ resources like insight, trading experience, research and risk management strategies. It allows investors to copy or follow other investors (commonly known as professional traders/ experts) to have the same positions as the experts they are copying. For investors, copy trading is easy to operate and transactions can be carried out automatically and instantly. On Bitget’s copy trading, you can automatically copy 12+ professional traders’ strategies, and instantly follow their action on the market. No matter if it is a bull or bear market, expert traders may have their own trading strategy including risk management. Subscribe to Bitget Academy social media today! Twitter | Telegram | LinkedIn | Facebook | Instagram Disclaimer: This article should not be taken as the basis for making investment decisions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

Are Cryptocurrencies Safe? 4 Tips You Should Know To Avoid Crypto-Scam

Sick of being a no-coiner but worried about the safety of crypto? Here are 4-tips for you to look out for crypto-scam! After reading this article, you will not become a crypto guru, yet, but you are sure to dodge some of the most common scams in the crypto space. BE MINDFUL OF WHERE YOU ARE STORING Before purchasing your first cryptocurrency, either via a crypto exchange, OTC or a Bitcoin ATM, you should look into some storage options for your crypto. There are a few options to store your crypto. Crypto Exchange Hot Wallet Cold Wallet Pros Good for avid traders Easy to Navigate Easy access to different Dapps Decentralized Highest level of security Cons Hacking Risk Hacking Risk Hardware cost Advice Look for credible exchange Keep your private key safe Keep your private key safe Example Bitget Trust, Exodus, Metamask Ledger, Trezor You could always use a combination of the above when it comes to crypto storage solutions. Regardless of what storage options you picked, there are a few steps you can take: First, always enable two-factor authentication whenever possible Second, avoid clicking suspicious links (Phishing email) Third, write down your private key physically (avoid saving it online or taking any photo of it) and keep them safe. NOT YOUR KEY, NOT YOUR COIN If you have decided to use a digital wallet, you need to remember one golden rule in the crypto space: “NOT YOUR KEY, NOT YOUR COIN.” “Key” refers to the private keys of your crypto wallet, which is used to access your funds. The rule of thumb is you should NEVER share your private key with anyone. If you reverse engineer this principle, you will know EVERYONE is coming after your private key. Hackers and scammers will lure your private key in various ways; here are some common formats: Imposter website: Some hackers would create fake crypto-related websites, such as crypto exchange, Defi protocol, crypto wallet, etc. Some of them might ramp up the imposter website on Google Ad. So you should always double-check the website URL before typing in any information. Phishing email/social groups: Hackers will send scamming emails/ messages on social media to lure your information, such as private keys. They would usually fake the identity of an established crypto-related entity. These scammers would usually issue fake ICOs and giveaways to lure your private keys. In general, no institution, protocol, or community would request your login credentials or private keys to issue airdrops or send funds. Therefore, you should NEVER provide your information no matter what channel you receive that request. RESEARCH, RESEARCH, AND RESEARCH - PUMP AND DUMP SCHEME Let's move on to more sophisticated scams. If you had been in the crypto space for a while, you’d probably heard of the term “Pump and dump scheme”. This term usually refers to a group of scammers who manipulate a price surge of an asset and lure newcomers into it out of FOMO (Fear of missing out). Then the same group would sell off a significant amount of that token, which would usually drive the price down to a fraction of its original value—resulting in the newcomer holding the bags of worthless tokens. To ensure you would never fall into these scams, you should always do your due diligence to research and invest in what you understand. Avoid investing based on “insider information” or FOMO. IF IT LOOKS TOO GOOD TO BE TRUE, IT PROBABLY IS - RUG PULLS Another common scam is rug-pull. Like a pump and dump scheme, a rug pull would also result in you losing money. The difference is how they do it. While pump and dump scammers often bought a substantial amount of specific tokens at a low price, rug pull scammers are those the development team removed the liquidity of a token, which made it impossible for investors to sell in the first place. A rug-pull usually happens in Defi protocol like a decentralized exchange (DEX), where scammers list their coin/token and pair it with the blue-chips token. Once there were enough investors had lured into the liquidity pool. The dev./scammer would withdraw all the funds and drive the price to zero. So how do you avoid rug pulls? You have to understand if the project you are investing in is “Unruggable.” Read their whitepaper, see if the dev team renounced their ownership of the token’s contract, see if a few wallets held the majority of the token. THE BOTTOM LINE You could never go wrong with being educated and informed before investing. In fact, you are on the right track if you are reading this. When you bump into a rare opportunity, you should always take some time to research the projects’ background: Learn more about their development team, the tech, their roadmap, and what institutions are backing it.