Stopping the cryptocurrency market: Why the stacking into bears
The cryptographic market was recently on a mountain trip, and prices changed wildly, in response to various factors. One of these factors that drew the attention of many investors is the processing, the process that rewards users for the long -term maintenance of cryptocurrencies.
In this article, we are immersed in the world of cryptocurrencies, examining what it means to stand, and why it can be an effective tool for bears who want to control their wallets.
What happens?
Storage includes blocking the cryptocurrency in the Proof-Off-Sake (POS) network, allowing validations to create new blocks and provide network security. Not only does this process reward the incentives with newly broken coins, it also requires the fee and also in the part of the block transactions.
Benefits of bears
In the case of the bear, placement is particularly attractive as it can reduce their exposure to market variability. By slowing the coins, they basically buy and vote for future blocks. This approach allows the bear to use the POS network security while minimizing the risk of significant losses.
One of the main benefits of placement of bears is to protect against price drops. When the market falls, lawyers can block the coins, waiting for the price before returning before selling and profits. This approach allows the bear to relieve its losses by blocking the profits in time.
Open Interest: Key Alarm
Open interest (OI) is another key element of cryptographic markets. OI represents the full value of expired contracts or derivative transactions on the stock exchange, such as futures contracts or options. This is a key indicator that measures market mood and liquidity.
If the OI is high, it usually points to a strong BID-AK-racing, which means there are more buyers than sellers who are ready to use price movements. In this case, bears can use imbalance, lower prices to buy and block coins.
The effect of storage on open interest
The cargo has a significant impact on open interest by increasing the demand for cryptocurrencies. When bears give coins, they buy online, which increases demand and then increase the value of these coins. This phenomenon is called « growth by Stake ».
As the number of those interested increases, the total value of expired contracts increases, resulting in a higher OI scan. This, in turn, creates a self -determining cycle in which bears can use increased demand and increase prices.
The Bear Best Friend
The accumulation is often called « Bear’s best friend ». It provides protection against price drops, allows the bear to block profits over time and increases demand for cryptocurrencies. Understanding how investors can navigate in the cryptographic market and make sound decisions about their investments.
In summary, storage is an indispensable element of cryptographic markets that offers a huge bear device that wants to take control of their wallets. In order to understand the benefits and mechanics of the lake, investors can gain confidence in this strategy and place themselves in the ever -changing world of cryptocurrencies.