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It’s important to remember that the DeFi space is constantly innovating. When you deposit your cryptocurrency in a decentralized liquidity pool, you’ll typically receive LP tokens that represent your position. How is adding. Removing liquidity taxed? At this time, Hillary Clinton the IRS has not given explicit guidance on how depositing and withdrawing liquidity is taxed. The full tax implications […]
It’s important, because measurement of the whole order book is going to give false results due to extreme values, which can make false illusion of liquidity for a given market. Left (green) side of the market depth bar is showing how many buy orders are open, and right (red) side of the bar is showing how many sell orders are […]
There are a lot of determinants of cryptocurrency value. Scarcity element is linked to the supply and demand ratio. If a coin has a huge supply or it’s unlimited, but the demand for the coin is small, then the price of the coin may be low or even fall. Cryptocurrencies that have a limited supply, such as Bitcoin, are deflationary […]