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The study of token economics is known as tokenomics. It covers all elements of a cryptocurrency's creation, management, and sometimes removal from a blockchain network. The term "tokenomics" is formed by pairing up the two words "token" and "economics" and is largely used within the crypto ecosystem to project the potential of a cryptocurrency. Tokenomics, simply put, is how token value is determined and what affects its value. 

Tokenomics and cryptocurrencies

Tokenomics and cryptocurrencies are closely connected. Tokenomics refers to the set of rules and principles that govern how cryptocurrencies work. It includes important aspects like how many tokens exist, how they are distributed, and what they can be used for. These rules are crucial for designing and managing cryptocurrencies effectively.

Tokenomics plays a significant role in determining the value of cryptocurrencies. It influences how people perceive and evaluate a cryptocurrency's worth. Factors such as token scarcity (limited supply), the usefulness of tokens in various applications, and the level of demand for them can impact the price and acceptance of a cryptocurrency.

Well-designed tokenomics can foster trust and adoption, and increase the overall value of a digital currency. Conversely, poorly designed tokenomics can hinder adoption and limit the perceived value of a cryptocurrency when traded for fiat currencies or other cryptocurrencies. Therefore, creating a solid and thoughtful tokenomics model is essential for the success and widespread acceptance of cryptocurrencies.

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An example of tokenomics: Bitcoin

Bitcoin operates on a specific set of tokenomics. It has a maximum supply of 21 million coins that will ever enter circulation, ensuring scarcity and value appreciation over time. Ethereum, for example, has an unlimited amount of coins. The issuance of new Bitcoins through mining creates incentives for network security while halving events reduces the rate of new supply.

Additionally, Bitcoin's decentralised nature and widespread adoption contribute to its value, with market demand and utility driving its price in the open market. These tokenomics elements make Bitcoin a deflationary digital asset with a unique economic model within the cryptocurrency ecosystem.

Why is tokenomics important?

Tokenomics is especially important in the crypto space due to the lack of regulation. Since there are no laws governing cryptocurrencies, tokenomics provide an opportunity for cryptocurrencies to be evaluated according to their real-life merit, not just how they are traded on exchanges.

What are the benefits of tokenomics?

Tokenomics offers several benefits within the cryptocurrency ecosystem. Firstly, it establishes clear rules and incentives, ensuring a fair and transparent economic system for participants. Tokenomics can incentivise desirable behaviour, such as staking or contributing to network security, promoting overall network growth and sustainability.

Additionally, tokenomics enables the creation of utility and value for tokens, providing variable economic benefits to holders. It allows for the development of decentralised applications (dapps) and the creation of vibrant ecosystems around cryptocurrencies. Similarly, tokenomics facilitates liquidity and trading opportunities, enabling users to buy, sell, and exchange tokens in various markets.

Overall, tokenomics fosters innovation, incentivizes participation, and contributes to the overall growth and success of the cryptocurrency ecosystem.

What are the negatives of tokenomics?

While tokenomics has numerous advantages, there are some downsides to consider. One downside is the potential for market volatility, as token prices can be subject to rapid fluctuations influenced by various factors, including market speculation and investor sentiment.

Additionally, inadequate or poorly designed tokenomics models may result in economic inefficiencies, lack of token utility, or even vulnerability to manipulation. It's important to note that tokenomics may not guarantee long-term value stability, and investors should carefully assess the risks associated with specific tokens and projects before engaging in the cryptocurrency market.

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The different tokenomics terms explained

Asset valuation

The process of determining the value of a coin or token. This is especially useful for users who want to purchase new coins or tokens. If they can estimate how much a coin or token will be worth in the future, it might be easier to decide whether or not its price is worth tapping into. Coin and token valuation is also important for traders who have made a significant purchase of a coin or token, and want to assess if its price is likely going up or down.

Inflation

In the context of tokenomics, inflation refers to the increase in the token supply over time, resulting in a decrease in the token's purchasing power and value. Inflation can impact the economic stability of a cryptocurrency ecosystem, and its management is crucial to maintain the desired balance between supply, demand, and overall token value.

Deflation

In tokenomics, deflation refers to the decrease in the token supply, leading to a potential increase in the token's purchasing power and value over time. Deflationary tokenomics can promote scarcity, create incentives for holding tokens, and potentially drive price appreciation within the cryptocurrency ecosystem.

Supply and demand elasticity

If a coin has high supply-and-demand elasticity, its price will likely be more affected by changes in demand relative to its supply. This means that if demand for a particular coin rises, the coin will experience more positive price action ($$) than if demand for the same coin fell.

Supply and demand elasticity = (% change in quantity supplied) / (% change in quantity demanded).

Community rewards

When a coin or token has a substantial community surrounding it, it can play a role in contributing to improving the asset’s fundamentals. This is an example of market-based governance that has the potential to lead to a rise in the coin or token's value as it is considered an indicator of trust in the network.

Pump and dump schemes

A pump and dump scheme is a manipulative practice within tokenomics where a group artificially inflates the price of a token through coordinated buying, creating a "pump." This creates a false sense of value and attracts unsuspecting users. Once the price reaches a peak, the group sells off their holdings, causing a rapid price decline, or "dump," leaving other users at a loss. Pump and dump schemes are considered fraudulent and can lead to significant financial losses for those involved.

In conclusion

Tokenomics plays a vital role in the cryptocurrency ecosystem by establishing rules, incentives, and economic principles for cryptocurrencies. It influences the value and acceptance of cryptocurrencies by determining factors such as scarcity, utility, and demand.

Well-designed tokenomics can foster trust, adoption, and increase the overall value of cryptocurrencies. However, it's important to be aware of potential downsides, such as market volatility and poorly designed tokenomics models. Understanding tokenomics helps participants evaluate the real-life merit of cryptocurrencies and make informed decisions.

If you’re new around here, yes, memecoins are a real thing. It might sound facetious, but memecoins have become a significant part of the crypto landscape. Let's dive in and understand what they're all about.

What are memecoins?

A memecoin is a type of cryptocurrency that's inspired by internet memes, jokes, or popular culture references. Unlike more serious cryptocurrencies like Bitcoin or Ethereum, which were created with specific technological goals in mind, memecoins often start as a joke or a light-hearted project with little utility, if any.

The term "meme" refers to an idea, behaviour, or style that spreads quickly within a culture, often through social media. Similarly, memecoins spread through online communities, gaining popularity and sometimes value along the way. Like their more serious counterparts, they can be traded on an exchange and are measured by their market cap.

The birth of memecoins

The concept of memecoins began in 2013 with the creation of Dogecoin. It was inspired by the popular "Doge" meme featuring a Shiba Inu dog. What started as a joke quickly gained a following and, surprisingly to many, actual monetary value. Dogecoin currently has one of the top 10 biggest market caps in the industry. 

Since then, numerous other memecoins have appeared, with names and themes often based on internet culture, celebrities, or even other cryptocurrencies.

How memecoins work

Technically, memecoins work similarly to other cryptocurrencies. They use blockchain technology and can be bought, sold, and traded on various cryptocurrency exchanges. However, there are some key differences that investors should take note of:

• Purpose

While many cryptocurrencies aim to solve real-world problems or improve existing systems, memecoins often lack a serious purpose beyond entertainment and speculation.

• Supply

Memecoins often have a much larger supply than traditional cryptocurrencies. For example, while Bitcoin has a maximum supply of 21 million coins, Dogecoin has no supply limit at all.

• Price

Memecoin prices are typically much lower per unit than mainstream cryptocurrencies, often fractions of a cent.

• Volatility

Memecoins can be extremely volatile, with prices potentially skyrocketing or plummeting based on social media trends, celebrity mentions, or community activities. As is the case with Elon Musk and Dogecoin, a mere mention creating hype and sending the currency price soaring.

The appeal of memecoins

Despite their seemingly frivolous nature, memecoins have gained significant popularity for several reasons. Many people are drawn to the fun factor, enjoying the playful, community-driven aspect of these cryptocurrencies. Their accessibility is another key appeal, the typically low price per coin makes memecoins feel more attainable to newcomers in the crypto space. 

The potential for dramatic gains has also attracted many speculators, as some memecoins have seen explosive price increases, fueling hopes for quick profits. But perhaps most importantly, memecoins often foster strong online communities, giving holders a sense of belonging and shared purpose. This community aspect can create a powerful network effect, further driving interest and engagement in the memecoin ecosystem.

Risks and considerations

While memecoins can be fun and exciting, they come with significant risks:

• High volatility: Prices can change dramatically in short periods, potentially leading to significant losses.
• Lack of fundamentals: Unlike more established cryptocurrencies, memecoins often lack solid technological foundations or real-world use cases.
• Pump and dump schemes: Some people manipulate memecoin prices for personal gain, leaving others with losses.
• Regulatory concerns: As cryptocurrencies face increasing scrutiny, memecoins might be particularly vulnerable to regulatory actions.

The most famous memecoins

While there are many memecoins, a few have gained significant attention:

Dogecoin (DOGE)

The original memecoin, which has gained a large following and celebrity endorsements.

Shiba Inu (SHIB)

Inspired by Dogecoin, it's become one of the most popular memecoins, currently in the top 15 biggest cryptocurrencies. 

Pepe (PEPE)

Based on the popular Pepe the Frog meme, this coin gained rapid attention in 2023 for its explosive growth and cultural resonance. At the time of writing, it was the 3rd biggest memecoin on the market.

Conclusion

Memecoins represent a unique and controversial aspect of the cryptocurrency world. While they can be fun and potentially profitable, they also carry significant risks. If you're considering investing in memecoins, it's crucial to do thorough research, understand the risks, and never invest more than you can afford to lose.

Remember, the cryptocurrency market is already volatile, and memecoins often amplify this volatility. Approach them with caution, and consider them more as a fun experiment rather than a serious investment asset.

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Before you invest in any crypto projects or assets, the golden rule is to always do your own research (DYOR). Hearing about a new coin from your neighbor or cousin's friend on Facebook is great, but it still requires a sizable chunk of your own research. Before you part ways with your money in the crypto space ensure that you've weighed up both the risks and the potential, the responsibility lies with you.

Crypto investing has a track record of being volatile, so the more clued up you are on the crypto assets you invest in, the better. While market data and fundamental analysis are important, be sure to understand the basics of a project and the project's potential.

What is DYOR (do your own research) in the crypto space?

The holy grail of investing in crypto projects, DYOR has become a common abbreviation for do your own research. The phrase is used to remind crypto investors that they should conduct their own research on a crypto project thoroughly before investing any money in it.

Whether you're looking to buy crypto assets, tokens, NFTs, or in any way get involved with a crypto project, be sure to thoroughly investigate the following factors mentioned below when doing your own research. Don't be lured in by a project's fundamental analysis, ensure that you understand everything there is to know about the project. Crypto investing can have devastating consequences for uninformed investors.

The 4 dimensions of how to DYOR on a crypto project

Below we will outline the four main dimensions of conducting your own research on a new cryptocurrency. These four pillars will give crypto traders a solid understanding of what the project represents, how it's been received, and what might happen in the future. Be sure to do this before looking at any technical analysis.

Remember, doing your own research requires reading multiple sources and verifying that the information is correct. When conducting your own research you mind find some disputing information, continue looking until you have the accurate answer.

Team

First and foremost, who is the team running this project? This information is typically presented on the platform's website or in its whitepaper (it's imperative that a project has both of these).

Take a look at the size of the project team, a small team might fall apart if one of the three members leaves while an excessively large team might be a red flag if it is still in its early days.

Check the experience of the leaders on the team. Ideally, you want leaders and executives to have experience in blockchain, Web3, finance, business, computer science, or any other related fields. Also, consider whether their current titles match their experience.

Are the team entirely anonymous? This is considered a red flag as the potential for them to execute an exit run is high. Consider the leaders of the project carefully and decide whether they have the means to steer this ship in the right direction.

Tokenomics

Tokenomics refers to the factors related to the supply and demand of a coin or token. The term merges "token" and "economics" and provides a key area of study for potential investors when establishing a coin's long-term viability. Below are the main aspects of tokenomics:

• Token supply: what is the maximum supply of coins or tokens?
• Token utility: what is the purpose of the coin (does it have governance rights, does it serve a specific function)?
• Market cap: How does the coin's market cap compare to that of its competitors?
• Issuance tactics: does the project intend on conducting token burns or any related activities?
• Minting, allocation, and distribution: how are the coins minted (all at once, gradually), when launched how are the tokens distributed, do a small number of members hold a large amount, are any coins locked up that will be released to the market on a specific date?
• Trading volumes and liquidity: what kind of volumes does this coin trade and how much liquidity does it have?

Innovation

For this pillar of the project, you want to look at what problem this project is solving, and what edge it has over its competitors. It's also worth taking a look at the project's road map and whether it is delivering on its self-set milestones. No roadmap is a red flag, well-managed projects are transparent and eager to release their milestone accomplishments.

Ideally, you want to establish what solution this project is bringing to the greater industry and what competitive advantage this project holds over similar projects. Consider its weaknesses.

If you want to take things one step further, consider what the team might not be telling you, and what elements could work against the growth and success of the project.

Social

This might not seem essential, but social media platforms can offer significant insights into the project's community, achievements, and current state within the crypto space.

When conducting your crypto research check whether the project has active official social media channels, and how often these are updated.

Secondly, how big is their community both in terms of followers and engagement? Are people engaging with the platform or talking about it on their own channels? Community members can shed a big light on how the project has been received.

Lastly, what kind of discussions are being had within the community of these groups? Are people friendly and inviting, or are they blindly promoting the project and pushing "lambo" sentiments? Ideally, you want to have a space where open and honest discussions can be had and constructive criticism accepted.

Toxic communities along with shillers and abandoned channels are all red flags.

The bottom line for DYOR and crypto projects

Establishing these four dimensions of a project is important prior to investing any money. Not only does it give you the opportunity to learn about a new project, but also to become better acquainted with what is happening in the crypto space.

Through the process of conducting your own research, you might discover a viable gem or even gain access to exclusive airdrops as an early supporter. Bear markets are a great time for diving into DYOR explorations.

The crypto market has entered a phase that veterans often call the "boring zone." It's a time when:

• Bitcoin's price seems stuck, fluctuating between $50,000 and $70,000 for months.
• Altcoins are in an even deeper slumber, with many down 50-80% from their peaks.
• Trading volumes on major exchanges have plummeted, dropping 30% from the last bull market's heights.

Sound familiar? It should. This lull is a recurring theme in the crypto market cycle, and historically, it's often the calm before the storm. It’s also a common attribute after a recent Bitcoin halving. 

Let's look at what happened after previous Bitcoin halvings:

• 2012 Halving: 92 days until new all-time high
• 2016 Halving: 291 days until new all-time high
• 2020 Halving: 216 days until new all-time high

For perspective, 28 July 2024 marks 100 days from the most recent halving, with 25 February 2025 marking the 300-day mark. 

The power of patient investing

Investing in cryptocurrencies over longer time horizons can be likened to early-stage venture investing, where patience could potentially lead to significant returns. While past performance doesn't guarantee future results, historical examples like Ethereum and Solana demonstrate this potential. 

Ethereum, launching at less than $1 in 2014, and Solana, starting below $1 in 2020, have since seen their values grow to over $3,000 and $140 respectively as of early 2024.

In the crypto space, what’s known as the HODL approach, emphasises the power of time and compound growth, similar to that of traditional asset classes. The idea is straightforward: if you've taken a position in a project you believe has strong fundamentals, maintaining that position through periods of high volatility could potentially lead to significant gains.

To illustrate this point further, in 2010, Bitcoin was worth less than $0.01. By April 2024, it had reached around $70,000. An investor who bought $100 worth of Bitcoin in 2010 and held it until 2024 would have seen their investment grow to millions of dollars.

Strategies for surviving (and thriving) in the "boring zone"

During quiet periods in crypto dive deeper into blockchain fundamentals, research promising projects, instead of anxiously checking prices or reacting to every piece of news, use this time productively.

Alternatively, for those with capital to invest, dollar-cost averaging (DCA) could be something to consider. A Vanguard study found that DCA outperformed lump-sum investing in 68% of cases during market downturns, highlighting its potential effectiveness in notoriously volatile markets.

Know with certainty that this "boring zone" is often temporary. Based on previous cycles, we might see a new Bitcoin all-time high in 30 to 150 days, and once Bitcoin breaks its previous record, top altcoin projects have historically seen gains of 200% to 1,000%.

By staying patient and disciplined during quiet periods, you can be prepared for potential opportunities that may arise as the crypto market evolves. Remember, while historical patterns offer insights, they don't guarantee future results, but these historical patterns are worth considering as you plan your strategy.

We get it, the waiting game is hard

Holding onto your crypto during boring market times can be tougher than you'd think. When prices aren't moving much, it's easy to get antsy or start doubting your choices. But keeping a cool head and being rational is key to long-term success.

First off, remember why you got into crypto in the first place. Was it the tech? The potential? Keep that big picture in mind. It helps to set realistic expectations too - crypto's known for its ups and downs, so flat periods are normal.

Try to limit how often you check prices. Constantly peeking at your portfolio can drive you nuts during slow times. Instead, focus on other parts of your life or dive deeper into learning about blockchain.

Connecting with other crypto fans can help too. Chat about ideas, not just prices. And don't forget to celebrate small wins - even if the market's quiet, projects are still developing and growing.

Stay patient, stay curious, and remember: in crypto, today's boredom could be tomorrow's excitement.

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If you're looking to earn extra money from anywhere online you've come to the right place. Making money online has certainly become more accessible and easier over the years, and in this blog, we're reviewing several ideas to do so without having to invest.

Whether you're looking to make some money on the side, or as a full-time pursuit, remember that as with most things in life: consistency is key. On this page, you'll find a number of beginner options requiring no particular skillset (only a bank account) for you to look into, relevant everywhere from the United Kingdom to the European Union to Australia. Each method varies in financial contribution, which we've highlighted at the end with a rating of the start-up costs.

Top 5 ways to make money online for beginners

1. Affiliate marketing

Affiliate marketing involves an individual earning money through promoting another business's product. This can be done through your own platform which might range from a blog to a website, social media, email campaigning or simply Google Ads. 

All you need is a working internet connection, a bank account and a reliable browser. Each time a friend or family clicks and signs up for the product, you bank a commission. 

Many companies these days offer this service, try to find one that you and your network might be interested in and see the opportunities that they present. 

Start-up Costs: $

2. Dropshipping

This will require a substantial amount of effort, however, the returns will be that much greater. Dropshipping involves selling a product online that you do not need to keep an inventory of, instead, the company that you are buying the goods from sends them directly to the customer. 

You act as the middleman between the manufacturer and the consumer and make money from the margin that you add. The start-up costs will be for your online website and marketing. 

Start-up Costs: $$

3. Freelance your skills

You can hire out your skills on sites like Upwork or Fiverr. Users create profiles expressing their skills, anything from writing to graphic design to music creation, and can apply to jobs requiring these skills. 

These sites will typically allow employers to connect with employees, and once the work is completed the funds are deposited directly into your account. This is also a great way to start a side hustle in your area of expertise without having to tuck into your savings.

Start-up Costs: zero

4. Explore the world of cryptocurrencies

Engaging with cryptocurrencies has gained significant attention in recent years. Before diving in, it’s important to educate yourself thoroughly to grasp the complexities involved. Our blog section on how to learn about crypto is a great place to begin. The cryptocurrency market is known for its high volatility, which presents both risks and opportunities. Whether you're active daily or only occasionally, understanding the landscape is key. To get started, consider signing up for a reputable and regulated platform like Tap, which can help you manage your funds securely.

Start-up Costs: $$

5. Participate in online surveys

Online surveys are a popular way for beginners to make money online. Companies are always looking for feedback on their products and services, and they are willing to pay for it. There are several websites that offer paid online surveys, such as Swagbucks, Survey Junkie, and Toluna.

To get started, simply sign up for an account, complete your profile, and start taking surveys. You'll earn points or cash for each survey you complete, which can be redeemed for gift cards or PayPal payments. Keep in mind that surveys may have specific demographics, so you may not qualify for every survey. However, with some patience and consistency, you can earn a decent amount of extra income in your spare time.

Start-up Costs: zero
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Earn money online from anywhere in the world

Of course, this list is only a small portion of the ways you can make money online, simplified down to the top 5. If you have more time at your disposal you can engage in market surveys, beta testing, becoming a virtual assistant, or even coaching. 

The opportunities are endless, with a wide range of start-up costs, time management, returns and the amount of effort required are to be considered. Ensure you do adequate research in order to learn about your next venture before diving in. At the end of the day, anyone can earn money online, the first step is just to get started. Good luck, may you have only lucrative experiences.

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5 tips on how to manage your money 

Now that you’ve established your income stream/s, here are 5 tips on how to manage the money you’re making. Whether you’re doing this as a side hustle or a full time job, consider implementing the following 5 steps in order to build your finances. . 

1. Build an Emergency Fund

Just like in personal finance, building an emergency fund is crucial for making money online. This fund will act as a safety net in case you hit a rough patch, and it will allow you to continue your online work without financial stress.

2. Create a Budget

Budgeting is another essential aspect of making money online. Creating a budget will help you keep track of your income and expenses, and it will allow you to make informed decisions about where to allocate your resources.

3. Focus on Your Niche

To make the process of making money online more enjoyable consider focusing on a specific niche that you are passionate about. Whether it's writing, graphic design, or web development, become an expert in your field and provide value to your clients.

4. Network and Build Relationships

Building relationships with other professionals in your industry is a valuable step when making money online. Networking can help you find new clients, build your reputation, and even lead to new business opportunities.

5. Stay Consistent and Persistent

Making money online takes time and effort, and it's important to stay consistent and persistent. Set realistic goals for yourself, create a schedule, and stick to it. Remember that success doesn't happen overnight, so don't get discouraged if you don't see results right away.

So what are you waiting for? 

If you're new to the world of cryptocurrency, you might have heard the term "spot trading" thrown around. Don't worry if it sounds confusing – we're here to break it down for you in simple terms.

What is spot trading?

Spot trading is one of the most basic and common ways to buy and sell cryptocurrencies. The word "spot" refers to the fact that these trades happen immediately, or "on the spot." When you do a spot trade, you're buying or selling a cryptocurrency at its current market price.

Think of it like buying groceries at a supermarket. You see the price of an apple, decide if you want to buy it, and if you do, you pay for it right away and take it home. That's essentially what spot trading is in the crypto and financial world.

How spot trading works

Here's a step-by-step breakdown of how spot trading typically works:

• Choose a cryptocurrency exchange: This is like picking your supermarket. 
• Create an account and verify your identity: Most reputable platforms require this to prevent fraud.
• Deposit funds: You'll need to transfer money (usually traditional currency like euros) into your exchange account.
• Select the cryptocurrency you want to trade: Let's say you want to buy Bitcoin, check its value.
• Place an order: Enter the amount of Bitcoin you would like to buy and confirm the trade.
• Receive your cryptocurrency: The Bitcoin you bought will appear in your exchange wallet.

That's it! You've just completed a spot trade.

Advantages of spot trading

Spot trading offers several advantages, particularly for beginners. Its primary benefit is simplicity – the process is straightforward and easy to grasp, making it an ideal starting point for those new to the industry. 

Another key advantage is immediate ownership, when you make a spot trade, you receive your cryptocurrency right away, giving you instant control over your digital assets. Spot trading also tends to have lower fees compared to some other trading methods. 

Lastly, spot trading provides excellent price transparency. You always know exactly what price you're paying for your cryptocurrency, which can help you make more informed decisions about when to buy or sell.

Things to keep in mind

While spot trading is relatively simple, there are a few important points to remember:

• Volatility

Cryptocurrency prices can change rapidly, this could equate to both profit or loss, so always check.

• Fees

Always check the exchange's fee structure, and carefully review it before executing a transaction. Even small fees can add up over time.

• Security

Keep your account secure with strong passwords and two-factor authentication.

• Don't invest more than you can afford to lose

Cryptocurrency markets can be unpredictable so always stick to this golden rule.

Spot trading vs. other types of trading

You might hear about other types of crypto trading, like futures or margin trading, but be aware that these are more complex and often riskier. Spot trading is generally considered the safest and most straightforward option for traders.

Remember, the crypto market never sleeps – it's open 24/7. This means you can spot trade anytime, but it also means prices can change at any moment.

Conclusion

Spot trading is your entry point into the world of cryptocurrency trading. It's simple, immediate, and gives you full control over your crypto assets. As with any investment, make sure to do your research and understand the risks involved. 

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