Ethereum 101: Important Things To Know And Some Info On Dissonance


Ethereum is one of the most popular cryptocurrencies in the world. Developed by Vitalik Buterin, Ethereum is only eclipsed in popularity by Bitcoin. Ethereum’s creation was based on a similar logic to Bitcoin, but it has a different software language and can be used in more ways than Bitcoin. Ethereum is also referred to as the “main power source”, helping produce thousands of altcoins with the help of contracts accepted on the same operating chain and only through a single blockchain. Let’s find out more.

Ethereum: Crucial Info, Negative, And Positive Dissonance

What are the Differences Between Ethereum and Bitcoin?

Ethereum, which started to emerge after the launch of Bitcoin, is not actually a project based on a different foundation. But BTC is not a coin that is open to systematic development (you can try your hand at trading BTC on bitcoin profit pro). The underlying purpose of Ethereum’s emergence is that it is open to the public. In other words, it has an improvable system and aims to be an upper version by distinguishing itself from BTC with its technological features.

Key differences between Ethereum and Bitcoin

  1. While the speed of finalizing transactions in Bitcoin is 10 minutes, it is limited to 15 seconds in ETH.
  2. Bitcoin halving occurs every four years and production halves, whereas Ethereum does not.
  3. While the total number of production in Bitcoin is limited to 21 million units, there is no production limit in ETH.
  4. Since the CPU is used in the production of Bitcoin, the production power depends on the hardware features of the machines in the hands of the people. However, ETH can be produced more easily because it is produced with a GPU (video card).

If we are comparing cryptocurrencies with the valuable resources available in the world and we consider Bitcoin as Gold and Litecoin as Silver, Ethereum is Oil. Because the underlying technology of Ethereum will be the energy source in the world’s internet system. Just as oil is used in many sectors and technologies in the world, the same is true for Ethereum technology. That’s why we refer to Ether as ‘crypto fuel’. The energy needed by the Ethereum platform will be provided with Ether (ETH).

Although the idea that ETH was in a race with BTC in the early periods was more common, these thoughts started to disappear after the fundamental differences and price movements started to become clear.

Is Ethereum trustworthy?

Since Ethereum is an encrypted currency like other altcoins, it prevents personal information from being stored by third parties and abused by other people. Every virtual shopping you make over the internet, social media, internet history are recorded in data banks as data. Not much is known about the purpose for which this information will be used. It eliminates this problem and keeps records on different devices by enabling the user to make transactions anonymously during internet transactions. Keeping this information confidential makes it impossible to access, making virtual shopping across the entire digital platform decentralized access.  

How is Ethereum produced?

Ethereum is a type of money produced in hardware and software, like other cryptocurrencies. However, BTC is produced using a CPU (processor), and since it is limited to 21 million units, the mining power is made more difficult every day. However, Ethereum mining is both easier compared to BTC mining and the difficulty level does not change day by day, as in BTC. Since it is produced using GPU (video card), miners process easier and their mining is more.

What is the relationship between Ethereum and Altcoin?

The Ethereum system is open to the public as it is built on an open source system. This makes it a good basis for the creation of many new altcoins. In order to be able to launch a new coin, coin offerings called “ICOs” collect funds in the form of masses and trade these funds with Ether even before they are released. Thus, the Ethereum system becomes a system that enables the production of new altcoins.

How to Buy Ethereum

Buying Ethereum is as easy as any other cryptocurrency. It can be registered with a stock exchange serving on a local or global scale and can be purchased through exchange with BTC or other supported cryptocurrencies, as well as by bank transfer from exchanges that support credit card or EFT.

Cryptocurrency investors look at coin comments on social media platforms or related channels before investing. Coin reviews are an important source of information for investing. Ethereum comments appear frequently on both Twitter and Telegram channels. Overall, Ethereum (ETH) reviews are positive. However, it is necessary to state that it is not right to invest only by looking at the comments, in addition to this, it is necessary to master the basic and technical analysis information.

The positive and negative congruence that expert investors in the cryptocurrency market frequently refer to is the shifting of indicators when the prices of a stock or cryptocurrency are bottoming or peaking.

What are positive and negative dissonances in technical analysis?

Just knowing about some charts or drawing charts is not enough to implement the right investment strategy. PU and NU reviews are also important issues that need to be learned in order to make the right investment decision. Positive and negative mismatches in technical analysis are very important issues for stock market investors. Investors who want to invest in the stock market should know about positive mismatch (PU) and negative mismatch (NU).

PU and NU are the values ​​that will make the job of an investor the easiest in investment strategies or technical analysis. It is highly likely that the profit will be higher when the technical analysis is made on the coins by paying attention to these two issues before investing.

What is Positive Dissonance in Technical Analysis?

Positive mismatch, which has an important place in crypto money or other investment exchanges, is the event that the indicators go up when the price of a stock is bottoming out. The stock is considered to be a sign that it will go up again sometime after it ends the bearish curve by going down. Investors who invest in the stock market open purchases when a positive mismatch (PU) occurs, make new purchases and intensify their investments. To give a short example; When examining an “X” coin, the support and resistance points are looked at. After a level reaches the support point, the bearish curve is considered complete and a new uptrend is expected. This is called “positive dissonance”.

How do positive and negative dissonances occur?

We have defined positive dissonance and negative dissonance above. So, how do negative and positive dissonances occur?

There are many prominent reasons for investment instruments to have positive and negative mismatches. For example, a negative mismatch (NU) would occur if the stock was not sold at the predicted rate to sell. If the opposite happens and the stock sells at the predicted rate or even above the expectation, a positive mismatch (PU) will occur.

Another factor in the formation of positive and negative dissonance is the short duration of positive and negative discordances over time. Because if the uptrend lasts for a short time, a house decline is expected at the peak in a short time. At the same time, one of the main reasons for the formation of positive dissonances is the short duration of the decline and the fact that it starts to rise in a very short time after seeing the bottom price. In short, we can say that incompatibilities are road maps that explain how the investor should act.

What is a negative mismatch in technical analysis?

Negative discordances, which are the opposite formation of positive dissonance, also tell how the investor should act. Before investing in stocks, coins or any commodities, PU and NU assessments are made. The opposite of the explanation we used for positive dissonance above is NU (negative dissonance).

Investors sell the cryptocurrencies they hold by looking at the negative mismatch, and they earn quite a lot of profit in this situation. At the same time, by looking at the positive dissonance and the negative dissonance, we can see that investors have moved to a different position to protect their earnings.

How to detect negative (NU) and positive mismatch (PU)?

Positive mismatch (PU) and negative mismatch (NU), which are very important for people who invest in the stock market, are detected by technical analysis. Looking at the positive dissonance graphs in the charts, the bottoming price curve emerges in linear shapes.

The blue line on the chart is called the “trend line”. This can be easily seen on the chart, where the break point is after the new bottom price confirmation by breaking the trend line in blue.

Looking at the negative divergence charts, the linear rise where the peak is broken shows itself as the confirmation of the point where the re-formed peak price point is broken. In the graphs viewed, if the point where the linear line breaks is below, it appears as positive discordance, and if it is above, it appears as negative discordance.

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