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Decentralized finance (DeFi) protocols offer decentralized financial services via smart contracts and charge fees for those services. When a DeFi project’s revenue increases, it attracts more users and liquidity.
Introduction
Choosing between different DeFi protocols can take plenty of time and effort. Many seem similar, so how do we know which one is the best for generating passive income from our crypto? An essential step is understanding a platform’s revenue and how much of it is shared with its users. You can then use this information to make an informed decision on where to invest your assets.
How DeFi Protocols Function
Decentralized finance (DeFi) protocols offer a range of financial services that operate via smart contracts. For example, a DeFi protocol could offer decentralized exchange services, loans, and liquidity pools, all run via smart contracts on a blockchain. All you need to access and use these services is a wallet and some crypto to cover your transaction fees.
There’s almost no limit to the financial services DeFi can offer. You can access exchange services, money markets, derivatives, and savings products in the DeFi world. All of these services are permissionless and disintermediated in nature.
How DeFi Protocols Generate Revenue
DeFi services’ operating costs come from the computing power needed to run smart contracts. Users typically cover this amount with the gas fees they pay. However, there are also other additional costs for services such as development and maintenance.  DeFi protocols charge fees for their services to cover these costs and generate a profit.
Decentralized exchanges (DEXs)
Users swapping tokens on a DEX must pay a fee to utilize its services. For example, a trade may incur a 0.3% fee for the DEX operator's treasury or liquidity reserves.
Lending protocols
Users who borrow from a lending protocol must pay a borrowing fee. Some of this will go to paying the liquidity provider (other users who have provided capital), while the rest will go to the protocol.
Why Revenue Is Important
Beyond covering a protocol’s costs, improved revenue and profits can also benefit stakers. DeFi projects often maintain a revenue-sharing model via their governance token holders. They also may use revenues to increase APRs for stakers or liquidity providers on their platforms. 
For DEXs, higher revenue can attract more users and in turn, improve liquidity. It can also boost APY for yield aggregators if they benefit from combining users’ staked funds for “bribes” as network validators.
To summarize, we can describe a project’s inflows and revenues in a circular fashion:
Popular projects attract liquidity, which attracts more users and forms a virtuous cycle.
Higher trading traffic and liquidity lead to lower slippage and faster execution.
More users improve legitimate trading volume, which leads to more revenue.
Revenue is shared with staked users, which provides more liquidity.
This loop also attracts users who want to engage in yield farming. Those looking to invest their money can increase their chances of maximizing their gains with compound interest. The more successful a project is, the more liquidity and, in turn, the more yield farmers it will attract. This process generates more revenue that can be used to improve a protocol’s offering.
How to See How Much DeFi Protocols Generate
DeFi operates on-chain, which means almost all transactional information — depending on the blockchain used — is verifiable. Blockchain explorer is easily accessible by everyone, but that doesn’t mean we can always understand the extent of a protocol’s revenue. There are a number of blockchain data aggregators that simplify the task so you can better understand each protocol’s revenue.
With a Google search and some research from trusted sources, you should be able to find metrics, revenues, and stats on DeFi protocols’ revenues. These figures can help you make more informed investment decisions.

This is a true story of how cryptocurrency, through Binance Pay, helped save a life by bypassing traditional banking delays, proving its practical value beyond investment.

Binance Pay enables instant, gas-fee-free transactions, offering a crucial advantage over traditional payment systems, which can be critical in urgent situations.

Initially skeptical, two families across France and Algeria embraced cryptocurrency after experiencing its benefits in a crisis, coming to see it as a tool for financial freedom.

Imed Idrissi (not his real last name) loves using Binance Pay. A professional P2P merchant from Algeria, he recalls that Binance Pay was the first crypto product he had ever used.

Years ago, a friend told him about cryptocurrency and Binance, and asked him to do a test sending one dollar worth of cryptocurrency. He sent over the agreed amount, and the friend returned it to him on the spot. Imed was impressed by the instant transfer and zero fees the platform charged. That was how his user story with Binance Pay began.

“Binance Pay helped me understand the distinction between using crypto and local fiat currencies. While costs are nearly nonexistent when using cryptocurrencies, they can be significant with fiat,” explained Imed.

“And I am not just talking about monetary cost. I am talking about costs that cannot be quantified, such as someone’s health and someone’s life.”

What had really opened his eyes to the revolutionary power of crypto transactions and cemented his loyalty to Binance Pay was a life-changing experience that came somewhat later.

It was when Binance Pay became his family’s lifeline and helped save the life of a dear family friend’s child.

A Life-Changing Holiday in France
Residing in Algeria, Imed’s parents, Mr. and Mrs. Idrissi, belong to an older generation and are not exactly tech-savvy. His father is the owner of a transportation company while his mother is a former civil servant. Before 2022, they were both staunch “fiat loyalists” and did not understand why Imed would spend most of his time on P2P platforms, exchanging cryptocurrencies.

In the summer of 2022, however, their views changed. The Idrissi couple went to France for vacation, as they did every year, to visit family and friends. As always, they paid a visit to Alain, an old friend of Imed’s father, with whom he shared an almost brotherly bond.

Around that time, tragedy struck Alain’s family. His young son was involved in a near-fatal car accident and required emergency surgery. In France, most people have healthcare provided by the government, however certain types of medical care might require more expensive procedures. Oftentimes residents of France hedge against unexpected costs by supplementing their basic package with private insurance.

Unfortunately, none of Alain’s family had held such an additional private insurance, and the required operation was exorbitantly expensive for their combined income. The family, however, had no other choice, as Alain's son's life was hanging by a thread.

Imed’s father decided to help pay for the surgery and committed to transferring some 10,000 euros from his bank in Algeria.

The Bank Transfer Problem
According to regulations at the time, transfers from Algerian banks to Europe were complicated by strict conditions, lengthy questionnaires to fill, and long processing times. When the Idrissi couple inquired about transferring 10,000 euros to Alain from their Algerian bank, they were told that the process could take up to a month to undergo all the checks and clearances because Algeria is not part of the SEPA zone.

Clearly, one month was unacceptable for the two families given the gravity of Alain’s son’s condition. The hospital would have been obliged to accept late payment, the case would have dragged on for too long, and they were all wondering if there could be a faster way to settle everything on the spot.

Binance Pay to the Rescue
Desperately looking for ways to expedite the transfer, Mr. Idrissi called Imed in panic. Imed was ready with an answer: cryptocurrency and Binance Pay.

Right on the same phone call, Imed walked his father through the steps needed to open a Binance Pay account. Once Mr. Idrissi had passed Binance’s identity verification checks, the account was set up on the same day. Imed transferred the required sum in USDT stablecoins immediately.

Afterwards, Imed guided his parents through the process of exchanging stablecoins to the much-needed euros and then withdrawing fiat using fintech service providers.

All’s Well That Ends Well
The Idrissi couple went to the hospital and helped settle the bills quickly. Meanwhile, Alain’s son received the care he needed to survive. Within days, he was in recovery mode, and his life was no longer in danger. Alain was in tears with gratitude.

Both families now truly understand why cryptocurrency is not to be viewed only as a passing fad, or to be dismissed as simply a risky investment. Digital assets are a powerful tool that revolutionizes traditional finance and adds real-world value in numerous ways. Platforms like Binance Pay have boosted the freedom of finance, helping move value more efficiently across borders.

“To me, Binance Pay means freedom,” said Imed seriously. “Once my money is on Binance, I consider it like having it in my own bank. I can use it whenever and wherever I want. With Binance Pay, transactions are fast and gas-fee free, unlike traditional payments that involve fees and sometimes fail on weekends. With bank transfers, large transactions also often trigger inquiries that delay the transfer process even more.”

Both families now store cryptocurrency in their Binance accounts and use it regularly when traveling via Binance Pay.

This story is submitted by a Binance Pay user. It is based on a personal experience and does not represent the views of Binance or constitute financial or investment advice. The content is for general informational purposes only, and individual experiences with Binance Pay may vary. Please conduct your own research and consult with a financial professional before making any decisions related to cryptocurrency or digital payments.

Binance Pay is a contactless, borderless, and secure cryptocurrency payment technology designed by Binance. It allows users to pay, send, and receive payments in over 300 cryptocurrencies from friends and family worldwide. Binance Pay has partnered with thousands of merchants all over the world to enable users to shop with over 80 crypto tokens globally. Popular tokens supported include USDT, USDC, BTC, BNB, ETH, SOL, ADA, XRP, DOGE, LTC, SHIB, PEPE.

Introduction to Binance Margin Trading
Margin trading (also known as leverage trading) can help you amplify your trading results. Learn how to get started with our beginner’s guide and earn crypto rewards by completing our educational tasks.

What is leverage in crypto trading?
Leverage in crypto is, in fact, no different from leverage in traditional financial markets. When using leverage, a trader uses borrowed capital to buy and sell cryptocurrencies or other financial assets. By borrowing funds, traders can amplify their buying and selling power to trade with more capital than they would typically have.

How does leverage trading work?
Before you can start leverage trading (also known as margin trading), you’ll need to deposit funds into your margin trading account. The initial capital provided is known as collateral (or initial margin deposit), and the amount required depends on the leverage you want to use. Leverage is commonly denoted by a multiplier, such as 2X (double your collateral), 5X (five times your collateral), or 10X (ten times your collateral).

Aside from your initial margin deposit, you also must maintain a margin threshold for your trades. Your initial collateral may not be able to cover losses from your positions. In this case, you’ll need to top up your margin account, so it's above the maintenance threshold. If you don’t do this, your positions will be liquidated (closed), and your collateral will be used to pay off any losses.

Leverage is commonly used in spot and futures markets with long and short positions. A long position is where the trader expects an asset's price to go up. In this case, they purchase an asset and sell it in the future (hopefully) for a higher price, or they promise to purchase the asset in the future at a fixed price.

Opening a short position means you expect an asset’s price will fall. Here, you sell an asset and repurchase it (hopefully) at a lower price in the future. You can also enter a futures contract to sell the asset at a certain price in the future, hopefully above the market price at that time.

Using leverage in these cases lets you buy or sell assets based on your collateral and not on your holdings. Even if you don’t own an asset you want to long or short, you can borrow it with leveraged funds.

For traders without access to capital, leverage provides the opportunity to trade with a lower initial investment. It also has the potential to bring higher profits and quickly amplify losses. Leverage combined with market volatility often causes rapid liquidations on highly leveraged positions.

As always, trade with caution and evaluate the risks before trading with leverage. A responsible trader never invests funds they cannot afford to lose, especially when using leverage.

What is Binance Margin Trading?
Binance’s margin trading service offers a standard model for trading with crypto leverage. It features most of the points previously discussed, allowing traders to amplify the possible gains and losses they make.

Binance Margin traders place orders to buy or sell cryptos in the spot market. This means that margin orders are matched with orders in the Binance Spot Markets. Margin Traders have access to 3X~10X leverage with assets provided by the platform. The leverage multiplier is based on whether you are using Isolated Margin or Cross Margin mode. Cross Margin shares your margin balance across open positions, while Isolated Margin allocates your margin balance to an individual position. Many traders use these options to manage risk across their positions.

With Binance Margin, users borrow funds from the platform, which then calculates the loan's interest rate for the next hour. Borrowers must repay their margin debit balance, regardless of the underlying value of positions.

Margin users on Binance also enjoy several benefits, including multi-asset collateral, diverse trading pairs, a cooling-off period, and an insurance fund.

Multi-asset Collateral: Margin users can invest multiple assets as collateral to borrow and trade on leverage with cross-margin mode. Instead of investing ETH only into an ETH-based margin trade, investors can use their BUSD and ETH, or BTC, and so on, to denominate their collateral. This allows traders to operate with improved flexibility when opening positions.

Diverse Trading Pairs: Binance Margin provides a wide range of trading pairs, including some not commonly offered.

Cooling-off Period: In order to combat irresponsible trading, users can temporarily suspend margin-trading-related activities for a specific period with the Cooling-off Period function.

Insurance fund: Binance Margin has an insurance fund that protects users’ accounts when their equity (i.e., their assets minus liabilities) is less than 0 or when the user is unable to repay debts due to a lack of funds in the account.

How to get started with Binance Margin Trading?
All KYC-verified users can start margin trading by:

Go to the [Margin Account] page and select Transfer to transfer assets. You’ll need some funds in your Spot wallet to move to your [Margin Account].

To start borrowing, select Borrow on your Margin Account, then confirm the asset you want to borrow. You’ll see details on the interest to be paid and collateral at this stage.

Visit the [Margin Trading] page to start Margin trading with your borrowed assets.

To repay your borrowings, go to the [Margin Account] page and select Repay.

A Complete Guide to Cryptocurrency Trading for Beginners
Cryptocurrency trading, or the buying and selling of digital assets like Bitcoin and Ethereum, has emerged as a dynamic and potentially lucrative endeavor.
For beginners, it’s essential to understand what makes cryptocurrency unique, familiarize yourself with common trading concepts such as order books, trading pairs, and order types, and become comfortable with technical analysis charts and tools.
This comprehensive guide will teach beginners all this foundational knowledge and prepare you to embark on your crypto trading journey. 
What Is Cryptocurrency Trading?  
Cryptocurrency trading, or the buying and selling of digital assets like Bitcoin (BTC) and Ethereum (ETH), has emerged as a dynamic and potentially lucrative endeavor. As cryptocurrencies continue to captivate global interest and more institutional investors join the sector, cryptocurrency trading is gaining increasing popularity.
Cryptocurrency trading often aims to capitalize on price fluctuations. Traders aim to buy these cryptocurrencies when prices are low and sell when prices surge, effectively profiting from the market's volatility. This fast-paced landscape presents both opportunities and challenges for beginners.
For those intrigued by the prospect of engaging in cryptocurrency trading, a comprehensive understanding of the market's intricacies is paramount. This guide aims to equip beginners with the foundational knowledge necessary to navigate this potentially rewarding landscape.
What Are Cryptocurrencies? 
Cryptocurrencies have taken the financial world by storm, redefining how we perceive money and transactions. 
Cryptocurrencies, like Bitcoin and Ethereum, are digital currencies that employ an innovative technology known as blockchain to ensure their security and integrity.
Unlike regular money from banks, cryptocurrencies aren't controlled by any one big company or government. Instead, cryptocurrencies are like public digital record books that anyone around the world can see and keep a copy of. 
As a result, cryptocurrencies are global, secure, and transparent. You can generally send and receive these coins to anyone in the world, at a faster speed without extra fees or paperwork required by banks. 
People often say that cryptocurrencies are decentralized, which is another way of saying that they are not controlled by a centralized entity. Essentially, you own your own digital wallet that gives you more freedom and control over your money. 
How to Start Trading Cryptocurrency 
Getting started with cryptocurrency trading requires a thoughtful approach and careful preparation. 
Before diving into the world of cryptocurrency trading, it's crucial to invest time in learning. You can rely on Binance Academy’s educational courses to understand the basic trading concepts and specific cryptocurrencies you're interested in trading. 
Selecting a reliable cryptocurrency exchange is critical. A good guideline is to opt for an exchange with a proven long-term track record, an excellent reputation, strong security protocols, and responsive customer support.
For newcomers, beginning with a centralized exchange is recommended. As you gain more experience in cryptocurrency trading, you can explore decentralized exchanges at a later stage."
Once you've chosen an exchange, the next step is to create your account. This usually involves providing your email, setting a password, and agreeing to terms. Sometimes, exchanges require identity verification to comply with regulatory standards. You would need to submit a government-issued ID, proof of residence, and any other documents to complete setting up your account. 
A Beginner's Guide to Cryptocurrency Trading
After you create an account, you can deposit fiat currency into your account. Most centralized exchanges allow users to deposit fiat via bank transfers, bank wires, or other common money transfer methods. 
If you happen to own some crypto already, you can deposit it into your exchange account. Remember to always send your coins to the associated address: send Bitcoin to your Bitcoin address, ether to your Ethereum address, and so on. Sending crypto to the wrong addresses could result in losses.
Now you’re set up for trading crypto, let’s quickly go through a few essential trading concepts for beginners. 
1. Trading pairs 
There are two main types of trading pairs: crypto-to-crypto trading pairs and crypto-to-fiat trading pairs. 
Crypto-to-crypto trading pairs involve two different cryptocurrencies, such as the ETH/BTC trading pair. If the current value of one Ethereum (ETH) is 0.05 Bitcoin (BTC), this means you would need to exchange 0.05 BTC to acquire one ETH. The value of ETH is expressed in terms of BTC in this pairing.
Crypto-to-fiat trading pairs involve a cryptocurrency and a traditional fiat currency, such as the BTC/USD trading pair.  If the current value of one Bitcoin (BTC) is $40,000 in US dollars (USD), this indicates that one Bitcoin is equivalent to $40,000. 
2. Order books 
An order book is a real-time, dynamic list of buy and sell orders placed by traders on a cryptocurrency exchange. It provides a snapshot of the supply and demand for a specific cryptocurrency at different price levels. 
An order book is split into two main sections: the buy orders (bids) and the sell orders (asks). Buy orders list the orders from traders who want to buy the cryptocurrency at a certain price, organized from the highest bid price to the lowest. 
Sell orders display the orders from traders who want to sell the cryptocurrency at a particular price, organized from the lowest ask price to the highest.
3. Market orders 
A market order is the simplest type of order, in which you buy or sell crypto immediately at the best available price in the market. Let's say the current highest bid, or buy order, for one bitcoin is 35,000 dollars, while the lowest ask, or sell order, is 35,010 dollars in the order book. If you place a market order to buy bitcoins, your order would be matched with the lowest ask, which is 35,010 dollars. If you place a market order to sell bitcoin, your order would be matched with the highest bid at 35,000 dollars.
4. Limit orders 
A limit order is an order to buy or sell a crypto at a specific price or better. For example, if you want to buy one bitcoin for $35,000 or less, you can set a buy limit order at $35,000. If the price drops to $35,000 or less, your limit order will be executed and you'll purchase bitcoin at that price. But if the price never drops to $35,000, your order won't be executed.
How To Use Crypto Wallets
A cryptocurrency wallet is a digital tool that enables you to store, send, and receive digital assets. 
For beginners, a software wallet, often referred to as a hot wallet, is generally recommended. This type of wallet is user-friendly and easily accessible through desktop or mobile applications. It also offers a familiar and convenient user experience, and usually comes with customer support. 
You can use hot wallets from crypto exchanges or download popular ones in the market, such as MetaMask. A hot wallet offers numerous benefits compared to your exchange account, including being able to do peer-to-peer transactions (without relying on an exchange) and exploring various decentralized finance (DeFi) services. 
When using crypto wallets, it's essential to follow good security practices such as enabling two-factor authentication (2FA), using strong and unique passwords, and keeping backups of your recovery seed or private keys in a safe place. 
As you become more comfortable with cryptocurrency, you can explore cold wallets that offer a different set of advantages and limitations. 
Which Cryptocurrency You Should Buy?
As a beginner in the world of cryptocurrency trading, deciding which cryptocurrencies to buy can be daunting. Here are some tips. 
Most people start with well-known and established cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). These have a proven track record and are less risky options for beginners. 
If you're considering exploring lesser-known cryptocurrencies, it's crucial to fully comprehend the associated risks, including the possibility of losing your entire investment. 
Keep in mind that in the world of investing, risks and potential returns often go hand in hand. Taking on higher risks might lead to greater potential returns, although it also raises the likelihood of losing your invested capital.
Starting small is good for beginners, as this allows you to learn and gain experience without risking too much capital. 
Lastly, a common mistake beginners should avoid is FOMO (Fear of Missing Out): Don’t rush into buying a cryptocurrency just because it's surging in price. 
Different Types of Cryptocurrency Trading
There are many crypto trading strategies that you can employ, each with its own set of risks and rewards. Let’s go through some of the most popular crypto trading approaches. 
Day trading
Day trading is a strategy that involves entering and exiting positions within the same day. Because cryptocurrency markets are open 24/7, day trading in cryptocurrency tends to refer to a trading style where the trader enters and exits positions within 24 hours.
In day trading, you’ll often rely on technical analysis to determine which assets to trade. Because profits in such a short period can be minimal, you may opt to trade across a wide range of assets to try and maximize your returns. That said, some might exclusively trade the same pair for years.
This style is a very active trading strategy. It can be highly profitable, but it carries with it a significant amount of risk. 
Swing trading
In swing trading, you’re still trying to profit off market trends, but the time horizon is longer – positions are typically held anywhere from a couple of days to a couple of months. 
Your goal will be to identify an asset that looks undervalued and is likely to increase in value. You would purchase this asset, then sell it when the price rises to generate a profit. Or you can try to find overvalued assets that are likely to decrease in value. Then, you could sell some of them at a high price, hoping to buy them back for a lower price.
Swing trading tends to be a more beginner-friendly strategy, mainly because it doesn’t come with the stress of fast-paced day trading. 
Position trading (trend trading)
Position trading is a long-term strategy. Traders purchase assets to hold for extended periods (generally measured in months). Their goal is to make a profit by selling those assets at a higher price in the future.
Position traders are concerned with trends that can be observed over extended periods – they’ll try to profit from the overall market direction. Swing traders, on the other hand, typically seek to predict “swings” in the market that don’t necessarily correlate with the broader trend.
Like swing trading, position trading is an ideal strategy for beginners. Once again, the long time horizon gives them ample opportunity to deliberate on their decisions.
Scalping
Of all of the trading strategies discussed so far, scalping takes place across the smallest time frames. Scalpers attempt to game small fluctuations in price, often entering and exiting positions within minutes (or even seconds). 
In most cases, they’ll use technical analysis to try and predict price movements and exploit bid-ask spreads or other inefficiencies to make a profit. Due to the short time frames, scalping usually has thin profit margins. Scalpers generally trade large amounts of assets in order to achieve sizable profits.  
Scalping is generally more suitable for experienced traders. For beginner traders who know what they’re doing, however, identifying the right patterns and taking advantage of short-term fluctuations can be highly profitable.
HODLing 
Long-term investors, also known as "HODLers," aim to benefit from the overall growth of the cryptocurrency market. They buy and hold cryptocurrencies for an extended period, often months or years. 
HODLing is ideal for those who believe in the long-term potential of specific cryptocurrencies such as Bitcoin or Ethereum and are willing to weather short-term price fluctuations. While this strategy requires patience, it may provide substantial returns over time. 
Technical Analysis and Chart Reading in Cryptocurrency Trading
Technical analysis is the art of interpreting price charts, recognizing patterns, and harnessing indicators to anticipate potential price movements. They are useful analytical tools that can greatly enhance your ability to make well-informed trading decisions.
1. What is a candlestick chart?
A candlestick chart is a graphical representation of the price of an asset for a given timeframe. It’s made up of candlesticks, each representing the same amount of time. 
For example, a 1-hour chart shows candlesticks that each represent a period of one hour. A 1-day chart shows candlesticks that each represent a period of one day, and so on.
Daily chart of Bitcoin. Each candlestick represents one day of trading.
A candlestick is made up of four data points: the Open, High, Low, and Close (also referred to as the OHLC values). The Open and Close are the first and last recorded price for the given timeframe, while the Low and High are the lowest and highest recorded price, respectively. 
2. What is a candlestick chart pattern?
A candlestick chart pattern is a visual representation of price movements in the form of candlesticks. It provides insights into the open, close, high, and low prices of a cryptocurrency or financial asset over a specific time period. 
A candlestick consists of two main parts: the body and the wicks (also known as shadows). The body represents the price range between the opening and closing prices of the trading session. 
If the closing price is higher than the opening price, the body is typically filled or colored in, often with green or white, to indicate a bullish session. Conversely, if the opening price is higher than the closing price, the body is empty or colored in red or black, signaling a bearish session.
The wicks, which extend from the top and bottom of the body, represent the price range between the highest and lowest prices reached during the trading session. The upper wick extends from the top of the body and indicates the session's highest price, while the lower wick extends from the bottom of the body and signifies the lowest price.
Candlestick charts offer valuable insights into market sentiment and price trends. Traders use patterns formed by multiple candlesticks to identify potential trend reversals or continuations. Common patterns include "Doji," "Hammer," "Shooting Star," and "Engulfing," each with its own implications for price movements.
3. What is a trend line?
Trend lines are a widely used tool by both traders and technical analysts. They are lines that connect certain data points on a chart. 
The main idea behind drawing trend lines is to visualize certain aspects of the price action. This way, traders can identify the overall trend and market structure.
The price of Bitcoin touching a trend line multiple times, indicating an uptrend.
Some traders may only use trend lines to get a better understanding of the market structure. Others may use them to create actionable trade ideas based on how the trend lines interact with the price.
Trend lines can be applied to a chart showing virtually any time frame. However, as with any other market analysis tool, trend lines on higher time frames tend to be more reliable than trend lines on lower time frames. 
Another aspect to consider here is the strength of a trend line. The conventional definition of a trend line defines that it has to touch the price at least two or three times to become valid. Typically, the more times the price has touched (tested) a trend line, the more reliable it may be considered.
4. What are support and resistance?
Support means a level where the price finds a “floor.” In other words, a support level is an area of significant demand, where buyers step in and push the price up.
Resistance means a level where the price finds a “ceiling.” A resistance level is an area of significant supply, where sellers step in and push the price down.
Support level (red) is tested and broken, turning into resistance.
Technical indicators, such as trend lines, moving averages, Bollinger Bands, Ichimoku Clouds, and Fibonacci Retracement can also suggest potential support and resistance levels. 
Fundamental Analysis: Determining Intrinsic Value of Cryptocurrencies  
Fundamental analysis involves a deep dive into the intrinsic value of a cryptocurrency project, examining its technology, team, adoption potential, and overall viability. 
Generally, you should try to understand the underlying technology of a cryptocurrency project. Delve into its blockchain architecture, consensus mechanism, and scalability. A robust and innovative technology can indicate a project's ability to solve real-world problems and gain adoption.
You should also research the team behind the cryptocurrency project. Evaluate their expertise, experience, and track record. A talented and experienced team increases the likelihood of successful project execution.
A cryptocurrency’s tokenomics are of paramount importance, as they determine the cryptocurrency’s total supply, distribution, and its incentive mechanisms. These are factors that often have a direct impact on the cryptocurrency’s price movements. 
Fundamental analysts also look into the project's adoption potential in the real world. Factors such as partnerships, use cases, community engagement, and market demand could also influence prices. 
Fundamental analysis equips yourself with the tools to assess a cryptocurrency project's underlying value. This strategic approach enables you to navigate the complex cryptocurrency landscape with a long-term perspective, making trading decisions that align with a project's viability and potential.
Risk Management in Cryptocurrency Trading
Effective risk management is essential for your crypto trading success. 
Risk management refers to predicting and identifying the financial risks involved with your investments, and minimizing them by employing a set of strategies. 
There are numerous risks in cryptocurrency trading, including regulatory risk, market risk, operational risk, liquidity risk, and security risk. Fortunately, there are risk management strategies you can employ to help keep your risk exposure at a reasonable level. Let’s look at a few popular strategies.  
1. Diversification
Diversifying your portfolio is one of the most popular fundamental tools to reduce your overall investment risk. You can hold a variety of different coins and tokens, keep each position at an appropriate size and constantly rebalance the portfolio, so you won't be too heavily invested in any one asset. This can minimize the chance of oversized losses. 
2. Hedging 
You can also hedge your holdings, which means taking a position in a related asset that is expected to move in the opposite direction of the primary position. The purpose is to offset potential losses. 
If you own $10,000 worth of Bitcoin and want to hedge against a possible decrease in its price, you could buy a put option for a premium of $500 that gives you the right to sell bitcoin at $50,000 at a future date. If Bitcoin's price falls to $40,000, you can exercise your option and sell your bitcoin for $50,000, significantly reducing your losses. 
3. Use advanced order types 
You can utilize advanced order types to lock in profits or protect yourself from losses. For instance, stop-loss orders allow traders to limit losses when a trade goes wrong. Take-profit orders ensure that you lock in profits when a trade goes well. 
4. Follow the 1% rule
Another strategy you can follow is the 1% rule, where you don’t risk any amount more than 1% of your total capital on a single position. For instance, if you have $10,000 to invest and want to adhere to the 1% rule, you could buy $10,000 of Bitcoin and set a stop-loss order to sell at $9,900. This way, you would limit your losses to 1% of your total investment capital.
5. Have an exit strategy
It’s always a good idea to plan for the worst. So having an exit strategy is an essential way to manage your risks. It's easy for us to get caught up in a bull market and its euphoria, but having a plan to exit your position can help lock in gains. 
One way is to use limit orders to take profit or place a floor on maximum loss that you can stand. As a general rule of thumb, once you have your exit plan, you should stick to it. 
6. Do Your Own Research (DYOR) 
It's essential to emphasize the importance of "Do Your Own Research!" This principle is so vital within the crypto community that it's commonly referred to by its acronym, D-Y-O-R. Before investing in a token, coin, project, or other asset, you must do your due diligence. It's key that you assess essential information about an asset to fully understand its risks. If you want to invest in an ICO, ensure you read the white paper and understand the tokenomics, roadmap, and communities before you make the jump!
In summary, investing in crypto can be risky, but there are many ways you can manage those risks effectively. 
Closing Thoughts 
Congratulations on completing this comprehensive guide to cryptocurrency trading for beginners! You should be better prepared to begin your crypto trading journey, equipped with essential knowledge and tools to navigate this exciting landscape.
As you venture into the realm of cryptocurrency trading, remember that learning is an ongoing process. Markets can be unpredictable, and cryptocurrency markets are particularly volatile. With continued learning, however, you are well on your way to become a better crypto trader with each practical trading experience you gain. 
Always prioritize research, education, and risk management in your trading journey. Stay informed about the latest developments in the crypto space, continue refining your skills, and adapt your strategies as needed. 
Disclaimer and Risk Warning: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Binance Academy Launched the Free Cryptocurrency Education Platform in 15 Languages in 2018

Binance Academy, the education arm of Binance, has released more than 450 blockchain and cryptocurrency articles and videos across 15 popular languages today.

Binance Academy is a nonprofit blockchain education portal that offers quality, easy-to-understand content for cryptocurrency users and enthusiasts worldwide. Since the Academy’s limited beta launched in August 20118, users have spent more than 14,000 hours on the platform; equivalent to 10,000 minutes of content consumed per day, and 583 days of educational material delivered overall back in December 2018.

“Education is the integral pillar to proliferating crypto and blockchain usage. With adoption still at its infancy, the world needs a consolidated, easy-to-use, and reliable source of knowledge to advance the understanding of cryptocurrency and distributed ledger technologies,” said Ted Lin, Chief Growth Officer at Binance. “With Binance Academy, our goal is to provide an entirely neutral platform with quality, unbiased, educational information. Users can learn about everything to do with Blockchain, Security, and Economics, in addition to useful tutorials and guides, in their preferred languages.”

Binance Academy caters to users of all experience levels, with content ranging from “What is cryptocurrency?” and “How does blockchain work?” to more complex topics on security, such as Cryptojacking and Ponzi & Pyramid Schemes––two of Academy’s most popular pieces of content.

With the launch also came a new web interface, featuring interactive, in-depth articles, accompanying videos and a comprehensive glossary. Binance Academy content is now available in English, Vietnamese, Polish, German, Italian, Spanish, Portuguese, French, Dutch, Chinese (Traditional and Simplified), Arabic, Korean, Russian and Turkish.

To further build the community and drive cryptocurrency awareness and adoption, Binance Academy always worked closely with international Binance Angels and they have been developing the educational materials, and launched course certification programs in 2019. You can find about all the benefits available when you visit Binance Academy for free, quality cryptocurrency and blockchain content: https://www.binance.vision

Follow Binance Academy on Twitter: https://www.twitter.com/binanceacademy

Join Binance Academy on Telegram: https://t.me/binanceacademy

**Article was published by Binance back in 2018-12-11
**Article was modified by the Creator adding some general information in 2024-08-11