The dark side of the cryptographic market: Understand FUD and increase the scalability of blockchain

The world of cryptocurrency is known for its volatility and speculative nature. The emergence of decentralized finances (Defi) has brought new investors to the market, while traditionalists continue to be careful with the risks associated with digital currencies. However, under the exaggeration and speculation surface there is a complex network of factors that can affect the performance of cryptocurrencies. In this article, we will deepen the field of FUD (fear, uncertainty and doubt) and explore how technical analysis can help merchants navigate these challenges, as well as discuss Blockchain’s scalability.

What is FUD?

FUD refers to the negative and speculative feeling that has become a distinctive seal of the cryptocurrency market. It is a self -effort cycle of fear, uncertainty and doubt that reduces prices. This mentality often leads investors to make irrational decisions, such as buying overvalued assets or keeping coins without value.

FUD Psychology

FUD is fed by several psychological biases, which include:

• Loss aversion : The tendency to avoid losses at all costs can lead people to set the price of possible profits and buy low.

• Anchor bias

  : overestimating the value of an asset before it is carried out due to pre -existing market expectations.

• Confirmation bias : Selectively looking for information that supports existing opinions by ignoring contradictory evidence.

Technical analysis in the context of FUD

The technical analysis (TA) is a set of methods used to analyze price movements and identify possible levels of support and resistance, trends and patterns within the markets, including cryptocurrencies. While some merchants can see how too simplistic or even manipulator, it can be an effective tool to identify trends and risk management strategies.

In FUD’s context, technical analysis can help merchants:

• Identify the feeling of the market : When analyzing the price movements and rates of relative force (RSI), operators can measure the general mood of the market and the possible entry points.

• Establish suspension orders : Use of indicators such as mobile averages or bollinger bands, merchants can establish the stages to limit potential losses if they suspect that significant correction is brewing.

Blockchain scalability: The key to unlocking the growth of cryptocurrencies

As cryptocurrencies continue to win traction, the need for greater scalability has grown. Scalability refers to the capacity of blockchain networks to process transactions and perform calculations at high speeds, without decreasing.

There are several factors that contribute to the slow rhythm of scale in current block chains:

• Limitations of the volume of transactions : The limited number of block transactions (typically 6) restricts network performance.

• Block size limits : The increase in block size can improve scalability, but also increases the difficulty of mining and can lead to reduced safety.

How to increase Blockchain’s scalability

To address these challenges, developers are exploring several solutions, such as:

• Take test (POS) : A consensus algorithm that rewards validators with cryptocurrency tokens to validate transactions, instead of requiring a large number of miners.

• Proof of the Skwrite (DPOS)

  : A POS extension that allows users to vote for validators and encourage them to act more efficiently.

• Fragmentation : Draw the block chain in smaller parallel networks (fragments) to improve transaction performance.

The future of scalability blockchain

As the demand for decentralized applications (DAPPS) continues to grow, it is essential to develop scalable solutions that can accommodate the increase in traffic and data volumes.

Tools Tools Enhanced Compliance Cryptocurrency