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https://github.com/peyman-borhani/info-trades

E-Trades basics guide. information summary.
https://github.com/peyman-borhani/info-trades

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E-Trades basics guide. information summary.

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# Info Trades

- Recent progress in Web3, Crypto, DApps,...
- E-Trades info summary...
- Aim: a case study to undrestand online transfer/trade systems/platforms.
- How online trading, exchange and monetization works.
- How to be safe and secure in these stuff, avoid scams or failure.
- Future Goal: best ideas for a non-monetary/decentrlised method of exchange/trade/circulation to minimize potential theft/scam/fraud...

## WEB 3
web3 projects offer new ways to use a decentralized internet that protects user privacy and isn't controlled and monetized by giant corporations.

web3 projects can help users monetize their own data, in contrast to the way major corporations harvest and profit from users' personal data on Web2.

Interesting Web3 projects:
DAI (DAI), Uniswap (UNI), Chainlink (LINK), Polkadot (DOT), Maker The Graph (GRT), Helium (HNT), and Basic Attention Token (BAT).

Helium mines its native HNT token through the use of radio-wave technology. It uses a decentralized machine network that also offers wireless coverage of Internet of Things (IoT) devices.

web3 projects are offering new incentives to capture the attention of the next billion users. The term web3 comes from the idea that the world wide web is in its third phase. The first phase began with text and old-school static images on computers. The second phase, based on centralized servers, brought interactive applications and social media platforms. The third phase is being driven by decentralized applications (dApps) that utilize smart contracts, tokenized assets, and distributed ledger technologies.

In web3, blockchain plays an integral role in creating a webscape based on decentralization and token-based economies. With web3 projects, users can monetize their own data as a solution to Web2, where big companies profit from sucking up vast quantities of personal data from people surfing the internet. Community-led web3 projects also offer consumers alternative games, art, fashion, and finance apps that are secured without a third-party entity.

That’s possible through the power of blockchain. As a distributed ledger technology, blockchain creates a decentralized network. Smart contracts are programs stored on a blockchain that run and execute functions according to set criteria. You can deploy smart contracts to do a wide range of functions — all without any intermediaries or enforcers.

This article will cover how web3 can revolutionize how people work with smart contracts and what they do with their computers and smart devices.

The world of web3
First, let’s dive further into the web3 ecosystem to break down how all the moving parts fit together. We’ll cover how web3 interacts with smart contracts, cryptos like Ethereum, and decentralized applications or dApps. Then we’ll zoom in on the details of what some new blockchain projects look like and what makes them so interesting.

web3 and smart contracts
Smart contracts, or digital self-executing contracts built on blockchain, are a key component of web3. These contracts power a range of functions, from executing financial transactions to identifying users to running a decentralized autonomous organization or DAO. Thus, smart contracts underpin web3 and the new digital landscape.

We will now break this down further by giving an example of programming mechanics. Let’s say you want to write smart contracts on the blockchain for basic transactions. To allow people to view information that’s already stored on that contract, you can invoke something called a function call, which doesn’t require a fee. However, for users who want to send a new transaction object, the smart contract requires a fee, which is called a gas cost. Programmers can put countless combinations of options, features and functions into smart contracts to achieve their goals.

A transaction hash is a string of characters that’s unique to a specific transaction that happens on a blockchain. String memory, which hosts all the hash information, is located on the public blockchain. This data can help you find your transaction object, funds, and transaction receipt. Additionally, your smart contract address is another piece of unique information on blockchain made possible through the technology of the interface and form control. Records of events that happen related to smart contracts, like changes to the smart contract state or token transfers, are stored in event logs.

Thus, all information stored is accessible, transparent, and secure. So let’s dive more into one example of blockchain, Ethereum.

Ethereum
web3 projects exist across many different blockchain networks, but we’ll begin by looking at Ethereum. Ethereum was the first blockchain that enabled smart contracts and is where many pioneer web3 technologies were developed. These include major networks like Binance Smart Chain and Solana, which use revised versions of the Ethereum Virtual Machine (EVM) to support smart contracts. On Ethereum, smart contracts are run using web3 js, which is a collection of libraries that allow your code to communicate with Ethereum nodes on the network.

These pieces of the puzzle come together to make a wide variety of decentralized apps or dApps possible.

Decentralized applications (dApps)
Decentralized applications are a newer concept that’s key to web3, in part because they give users and developers the power to own and sell their own data. A decentralized application can be built on Ethereum or other networks, such as Solana. DApps allow users who are not computer programmers to interact with smart contracts, giving them a much higher level of functionality. The dApps can take the form of video games, social media apps, virtual worlds, and more.

Web3 smart contract projects to watch
The term “web3 projects” refers to projects built using the above technologies and tools. In the last few years, the market for web3 projects has boomed. At the core of web3, projects like these encourage people to take action collectively and build a new tokenized society.

The way that web3 and smart contracts work together will be instrumental in growing crypto markets. Here's a look at five successful projects. They all have been in the top five of web3 projects based on market cap.

1. DAI (DAI)
DAI is a cryptocurrency that uses smart contracts to maintain a 1:1 peg with the U.S. dollar. To achieve its peg, DAI uses an open-source software called Maker Protocol that locks various cryptocurrency assets in smart contracts. Unlike other stablecoins, which are typically backed by assets, DAI is backed by collateralized debt.

Users can lock crypto assets in the protocol to generate new DAI tokens and return the DAI tokens to the protocol to recover their assets. Still, DAI's total supply isn't altered when users borrow or return tokens. Instead, the protocol's smart contracts vary the supply in response to the number and price of the tokens in its contracts.

2. Uniswap (UNI)
Uniswap is one of the longest-running and most-popular decentralized exchanges on the Ethereum network. It was one of the first to use and perfect the now-commonplace Automated Market Maker (AMM) model. The Uniswap AMM model lets users trade coins, earn rewards for supplying liquidity, and add new tokens for other users to trade.

In 2020, Uniswap released the UNI token. UNI is a governance token that lets users vote on significant protocol changes and initiatives.

3. Chainlink (LINK)
Chainlink is a decentralized oracle network that lets users connect their external data with the blockchain. Oracles feed external information to the blockchain so smart contracts can be executed based on real-world scenarios. For example, an online gambling smart contract allowing users to bet on weather events could be linked with a weather station via an oracle.

Many of Chainlink's users are enterprises seeking to integrate their business with the blockchain. Although Chainlink doesn't operate its own blockchain, it relies on node operators to retrieve data from off-chain feeds and enable the other actions needed to keep the network running. Node operators are rewarded with LINK tokens for supporting network operations.

4. The Graph (GRT)
The Graph is a query protocol on Ethereum's middle layer that allows developers to design dApps. The project's unique angle is the dApp-launching efficiency it offers, allowing users to save time and energy in development. The Graph's mission is to become a powerful decentralized web3 layer that's immune from the manipulation of tech companies. Additionally, the initiative shortens the time it takes to bring dApps to market, saving time and effort during the development process.

Indexers are in charge of maintaining nodes and processing queries across the network. In doing so, they stake the native GRT token. Because malevolent action could cost an Indexer their stake, this incentivizes all network participants to perform honestly. GRT currently has a $1.9 billion market cap.

5. Basic Attention Token (BAT)
Basic Attention Token (BAT) is the Brave web3 browser's native cryptocurrency. Brave is a free, open-source web browser that rewards users for their "attention" in BAT. Thus, by watching privacy-preserving advertisements, users can earn a passive income. Brave also protects users from being followed around the internet by website trackers and other unpleasant actors.

Brave also offers the TOR browser, which enables semi-private browsing. The browser reduces internet surveillance and gives you a safe way to hide your surfing history from big tech corporations. To increase rewards, users can choose to view more ads. Furthermore, Brave includes a "Tip" option that may be connected to a variety of social media platforms. This tool makes thanking your favorite content creators simple without any third parties, so that the creators get 100% of your tip. At the time of writing, BAT has a market cap of $1.2 billion.

Breaking new ground
Ready to dive deeper into web3 and create smart contracts of your own? You can build dApps, protocols, and smart contracts at Hedera using its innovative technology. What makes Hedera unlike anything else on the market is its Hedera Hashgraph and unique protocol. It offers predictable gas fees and carbon-negative energy use. Creating smart contracts using Hedera Hashgraph is straightforward and efficient.
###
Online trades increased in recent years worldwide, it offers much virtual potentials yet might sometimes damage your trades or investments.
Potentials/benefits are varied from providing access to global financial markets from anywhere in the world, to crypto/money exchange.
For instance, you can trade thousands of financial instruments using your computer or phone anytime, Among other things, investment in online trading can significantly strengthen your personal finances and help you achieve whatever your financial goals may be, securing a favorable future ahead of you.

## What Is Online Trading?
Simply put, online trading is trading done via the Internet.
Traders and investors buy and sell financial instruments (such as individual stocks, bonds, exchange-traded funds (ETFs), mutual funds and index mutual funds, derivatives, etc.) online through a trading platform provided by a broker.

Online trading also involves new risks that one should always keep in mind:

Traders should not place orders using computers that other people have access to;
It is important to log out after trading is complete to avoid misuse of your trading account by third parties;
Traders should never choose the "Remember me" option when logging into their trading account on someone else’s device.
Social Trading as One of the Forms of Investing
Social trading is a form of online trading that has become extremely popular in recent years as it is an excellent option for beginner traders. Simply put, social trading is a form of community-based investing: investors analyze financial data based on the actions of successful traders and use copy trading to copy their strategies. Social trading is suitable for investors with little time or knowledge to identify profitable investments.

Trading investors have a wide market range.
You can invest in one or more markets at the same time,
depending on your short/medium/long-term investment needs.

Most important financial markets to invest:

- Stock market
- Bond market
- Commodities market
- Derivatives market
- Cryptocurrency market
- Foreign Exchange (Forex)

### How to Start Trading Safely?

The most important thing you should do is choose a reliable and licensed online broker – a firm acting as an intermediary between a buyer and seller of a financial instrument – which will provide a platform for trading.
In turn, an online trading platform is a software system used by investors to trade securities, options, futures, ETFs, cryptocurrencies, commodities, or Forex. It allows them to open, close, and manage market positions online through an online broker – a financial intermediary. Brokers usually offer such trading platforms either for free or at a discount for maintaining a funded account or making a certain number of trades in a month.

Examples
- Broker good for beginners: TD Ameritrade
- ETFs – Fidelity Investments
- Advanced/International trading – Interactive Brokers.
- Other popular brokerage platforms include Robinhood (provides commission-free trading of stocks, ETFs, and options) and eToro (a global social trading broker).

### How to Choose a Reliable Broker?
While most online brokers are engaged in quite legitimate activities, there are also fraudsters among them who use incredibly tempting offers with obscure terms and low financial literacy of the population to try to steal as much money as possible from gullible people who readily believe anything.

Here’s what you need to pay attention to in order to protect yourself from fraud and scams while trading online:

Upon receiving any offer to invest your money, consider whether it is too good to be true.
If the investment offer doesn’t seem suspicious and you’re willing to take the risk, take some time and search for reviews about this online broker from existing clients.
Ask the online broker to show the license for brokerage services. The thing is that obtaining a license is a rather troublesome matter for fraudsters to do.
Even if an online broker gives you a copy of the license, don’t be lazy to find the website of the body that issued it and check if this online broker is on the list of licensed operating brokers.
When signings a contract with an online broker, make sure that the broker company listed in the contract is the same company that is listed in the online broker license.
If you see the logos of various payment systems, electronic wallets, etc., on the online broker’s website, and the broker says that they can only accept your payment by bank transfer, this should alert you.
Even if you decide to send money to an online broker by wire transfer, make sure that the payment recipient is the exact company listed on the license certificate and is on the list of active licensed brokerage companies published on the website of the relevant regulator.
Of course, following these simple tips does not guarantee 100% protection from fraudsters, but it significantly reduces the risk of losing your money.

### Learn to invest
To learn about investing and personal finance, it's helpful to start by understanding the basics of financial planning, such as creating a budget, saving and investing for the long term, and managing debt.
You can find helpful resources online or through books and courses that cover these topics in depth. It's also a good idea to seek out guidance from a financial advisor or professional, who can provide personalized recommendations based on your specific financial goals and needs.
As you learn more about investing and personal finance, it's important to be aware that picking individual stocks carries a higher level of risk compared to investing in a diversified portfolio of assets, such as index funds. Index funds offer a way to invest in a broad range of stocks or other assets, which can help to spread out the risk and potentially provide more stable returns over time.
While it's possible to achieve strong returns by picking individual stocks, it can also be challenging to consistently outperform the overall market. For these reasons, many investors choose to include index funds in their portfolios as a way to gain broad-based exposure to the market while also mitigating risk.