Learn to Ace Crypto Trading😉 #1

Good morning, folks!

🤗Welcome to Switch Daily.

Congratulations, you have successfully sailed through a MAD week. While the market stayed bearish, buildoors kept BUIDLing, especially in India. Did you know that India has 11% of the world’s Web3 talent, and the number of Web3 jobs in India has risen by ~138%? Wowza!

Speaking of Web3 jobs…we’re looking for a 😎graphic designer for our rocket ship—if you are a digital Da Vinci, check this out.

Here’s what we have for you today:

• Market pulse

• Tokenomics 101

• Women in Web3

• News that makes noise

• Friday Fun Meme

Market pulse 📈

The market’s dull as a desert 🌵

With just a day away from a long weekend for Indian investors with the festival looming, the broader crypto market failed to recover from last weekend's losses. The mixed session saw the world's first crypto, Bitcoin (BTC), fall through the first major support level for the first time in five sessions, losing 0.39%. However, BTC prices recovered from its mild losses and ended the day at $19,022.

Coin of the day: Dogecoin

From the top cryptos by market cap, only Dogecoin (DOGE), the popular memecoin, bucked the bearish trend and gained by 1.25%.

Wanna become a better trader? 👨‍💼

You need to know Tokenomics!

Tokenomics is like see-through glasses 👓—use it well and you will be able to see through all the value or crap that a crypto project spins. You just need to know how to use it. How?

You are in the right place, bruh. Consider this a 2-day crash course on Tokenomics 101. By the end of this course, you will master tokenomics and be able to spot good crypto from the shady ones like a pro. 😇

Here’s what we will talk about:

• Supply

• Demand

• Value accrual

• How to Tokenomics

What is Tokenomics? Is it like the cousin of economics? Eh, kinda.

Token + Economics = Tokenomics.

- Token = the coin built on blockchain, eg. BTC for Bitcoin.

- Economics = Study of demand and supply.

- Tokenomics = The study of supply and demand of a crypto token 🤌

Ok, before we dive in, let’s get familiar with a few terms:

• Total Supply → Total number of tokens that will ever be created.

• Supply → How many of those are in circulation already?

• Market Cap → The total value of tokens in circulation

• Whitepaper → It is the blueprint of any coin—has all the details regarding the project and token valuation.

You can get these details on sites like CoinMarketcap or CoinGecko.

Let’s talk Supply🖖

Supply 🪙

Our economics ma’am taught us that demand should always be greater than supply. Well, she was never more right.

If the total supply of any coin is significantly higher than the circulating supply, that means more tokens are scheduled to be released. For example, the total supply of BTC is 21 million. 91% of BTC is already circulating in the market.

Unlocking more tokens is like printing more money, it will increase the supply, and if the demand does not increase, the value of the token will decrease. This brings us to…

Emission

This is the rate at which the remaining coins will be issued. Simply put, the lower the emission rate, the better.

If the token releases all its supply in a short time, say three months, then higher the chance that the value of the token takes a bad hit.

On the other hand, if emission is slow and steady, say over a period of ten years, the increase in supply will not impact the token value big time. The last BTC, for example, will be released—that is, mined—sometime in 2140.

Allocation and Vesting

Allocation = Who gets the coins?

Vesting = When they get the coins?

Tokens are allocated to founders, early investors, VCs, the project developers, and you—the public. Look for an ideal token allocation. Here’s an example.

Let’s say a coin has allocated 50% of the tokens to early investors. That’s not a great sign, coz early investors are motivated sellers, they usually look for the value to rise and dump at a 5x or 10x value.

You may also want to note how these tokens are distributed—vesting. If all tokens are ‘locked up’ only for a short period, there are higher chances for the holders to sell immediately, which will bring the token’s value down.

Well, bhai aur beheno, that’s a wrap on part 1 of Tokenomics 101. We’ll be back again with part 2 on Tuesday, and this time we will be talking about deeper stuff like demand, how tokens get their value etc, etc. So keep an eye out.

Here is a fun quiz meanwhile:

Creator’s Spotlight 📹

Tune in to catch up on the latest Crypto Kranti episode with our editor-in-chief Ankit Vengurlekar. We have two fantastic ladies Aditi Chopra, Founder of Superwomen DAO, & Swati Agrawal, Founder of Olive Money App, talk about how to make a career in Web3.

Aur, Batao! 😀

🏏Sachin Tendulkar NFTs dropping soon

Sachin Tendulkar is on a comeback trail, not in cricket, but in the frenzied arena of non-fungible tokens (NFTs). The Indian cricket legend has collaborated with the popular cricket NFT platform Rario to make this happen.

🇷🇺Five Russians held for crypto scam

The US authorities arrested five Russian nationals along with two oil traders who were charged with global sanctions evasion and money laundering scheme using crypto.

🎊South Africa deems crypto as a financial product

Bringing some cheer amid the downturn in the crypto market, South Africa’s financial regulator classified crypto as a financial product.

💜Polygon partners with Nubank

Nubank, one of the largest digital banking platforms in the world, creates its Nucoin token on the Polygon blockchain as a part of its customer loyalty program.

Friday Fun Meme

Well, that's a wrap for today!

Have a good weekend. See you Monday! 👋🏽

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