Understanding market structure

Market structure is the pattern of swing highs and lows that shows who controls price. There are three states. 

1. A bullish structure makes higher highs and higher lows, climbing like a staircase. 
2. A bearish structure makes lower highs and lower lows, descending step by step. 
3. A ranging structure moves sideways with no clear progression. Reading which state you are in is the first job on any chart.

How earning with crypto actually works

There are two broad ways money comes to you in crypto: 

1. Your assets gain value
2. Your assets generate more assets.

Let’s talk about the general steps and discuss specific steps in detail.

Lots of wallet providers have entered the crypto space in recent years to meet the increasing demand from users. This has given crypto users a lot of different ways to protect their crypto assets.

However, with so many options, it can be challenging to determine the crypto wallet feature that is best suited to your specific crypto storage needs. In this article, we will explore the different crypto wallets on the market to help crypto enthusiasts make the right choice.

What is Binance Smart Chain?

Overview

A leveraged token is a financial product that aims to track the price changes of an underlying asset while also leveraging the returns of that asset through the use of derivative instruments (for instance, with 3x leverage).

What is a Crypto-Trading Bot?

A cryptocurrency trading bot is a software program designed to recognize the crypto-market’s trends and automatically execute trades. A trading bot takes the monotony of pushing the buy and sell button physically and trades on the trader’s behalf. Most traders configure the bot to a set of customized pre-programmed rules that use market indicators and trends to execute the trader’s trade preferences. One can acquire a trading bot for free via an open-source platform, get a licensed one at a fee, or with enough technical know-how, create one. Unlike stock trading bots, crypto-trading bots are generally less expensive and can be used by anyone, newbie or pro.

Cryptocurrency trading bots and trading algorithms variety

There is a wide variety of cryptocurrencies available in the market today. Bitcoin, being the first decentralized digital currency, remains the most popular and valuable cryptocurrency to date. As a result, it comes as no surprise that many individuals are engaging in bitcoin trading to generate passive income alongside their regular day jobs. However, a significant number of people lack the necessary skills or time to analyze crypto trading charts. Consequently, the use of bitcoin trading bots is gaining popularity in the bitcoin trading arena. Many of these bots are designed to function on popular crypto-exchanges such as Gemini, Huobi, Kraken, Poloniex, Bitfinex, and others. By utilizing advanced crypto trading software, individuals can enhance their trading experience and make more informed decisions.

Given the fact that the market is flooding with trading bots, high competition remains one of the challenges for someone writing his bot. Large organizations with access to more resources and professionals can develop more robust bots than someone working independently. Creating a bitcoin auto trader requires a lot of time to build its algorithm and ensure that it has no exploitable security flaws. While downloading an open source trading bot is cheap and requires minimum development time, it’s harder to build and adapt to its trading algorithm, create a unique set of features, or fix bugs or security issues.

Node.js versus python-crypto trading bots

The programming language that you choose depends solely on the features and functions that you want the trading bot to have. Preferably, you would want to use a programming language that’s widely supported and has an active community in the cryptocurrency sphere, such as Python or JavaScript, for developing an algo crypto trading bot.

Crypto staking pool explained

Let's look at the concept of a stacking pool using the most popular Ethereum network as an example. But first, we define staking.

What is staking?

Staking is the process of assigning a certain amount of tokens to the blockchain's governance architecture and thereby locking them out of circulation for a predetermined duration.

The protocol of a specific network secures an investor's holdings, comparable to placing money in a bank and agreeing not to withdraw it for a given length of time, which helps the network in a couple of ways.

What is crypto staking pool?

Crypto staking is similar to depositing money in a bank, in that an investor locks up their assets, and in exchange, earns rewards, or "interest."

The mining pools concept might be familiar to many from Bitcoin, where computing power is combined and increases the probability of mining a block, then dividing the coins according to the efficiency of each participant. The PoS algorithm allows the same trick, only instead of processors or video cards, coins are pooled together to form a Proof of Stake pool.

In the Ethereum 2.0 blockchain, the minimum entry amount to participate in Proof of Stake (PoS) validation is 32 ETH. By pooling efforts, users can profit from staking without complicated organizational training for the role of a validator. Staking pools allow anyone to interact with validators and lock in some crypto to work with them, making gains and paying only a tiny commission for validation services.

Why staking pool?

First, by restricting the supply, this might drive up the price of a token. Second, if the network employs a proof-of-stake (PoS) mechanism, the tokens may be utilized to regulate the blockchain. A proof-of-stake (PoS) system, as opposed to a proof-of-work (PoW) system that includes "mining," may be somewhat difficult, especially for crypto newbies.

Coins are staked in PoS systems to establish new blocks in the blockchain, for which players are rewarded. Winners are chosen randomly, ensuring that no single entity has a monopoly over forging.

It might be tough to set up a staking system on your own. You must manage and administer a node on your own. Furthermore, you must be familiar with the cryptocurrency's architecture, which may necessitate prior expertise that many investors lack.

By forging, a staker can get a proportionate return based on how much of their total assets are staked and how long they are staked for. Stakers can also combine their assets into a "staking pool" to meet any required minimums. It is also possible to "cold stake" on some networks, which requires staking cash or tokens maintained in a "cold" wallet, or one that is kept offline.

How staking pool works

The validator is screened and the network allows it to participate in transaction validation. To do so, it must provide a dedicated server 24/7 to perform the necessary calculations on it. By reserving a large amount of cryptocurrency, he starts solo-stacking. It’s profitable for each validator to open a service and attract even more coins to the stacking: this will increase his reward and he can get additional income from the commission that will be paid by the attracted users.

This is how the pool appears. Any user can transfer his coins to the validator's contract address and join the mining. The minimum amount for staking and the commission percentage are fixed and known in advance.

The proof-of-ownership algorithm is designed so that as the total amount of staking increases, the annual percentage of the reward decreases. At the same time, the emission decreases. Therefore, do not worry too much if instead of 15% per annum at the beginning of the contract you see that the network now pays 5% per annum. The amount of interest in dollars does not decrease from this.

Staking pool example.

Vitalik: Imagine Vitalika has a wallet with 1000 SOL coins. He doesn’t want to stake his coins within a pool, he wants to do it solo. There are slim chances that Vitalik’s wallet will be chosen to validate the block. Say a block chain has 1,000,000 SOL staked, then Vitalik has 1 chance to 1000 to be chosen under our perfect conditions.

Satoshi: Satoshi understands how staking pools work. He participates in the staking pool by putting some of his money into it. His wallet is the same 1000 SOL. However, instead of acting alone, Satoshi joined a staking pool. It has 100 people, each having 1000 SOL. Totaling in 100,000 SOL. Which gives 1 to 100 chances of being picked as a validator. By taking part in staking pool, Satoshi has a higher chance of earning more profit. The reward is divided among the pool participant. Satoshi will also pay small service charge fees.

Staking pool advantages

The entry threshold is a major plus. You don't have to have dozens of ethers or thousands of crystals. It’s elementary to place a cryptocurrency in a few mouse clicks, and it starts generating income. This is very handy if you plan to invest in it for years to come - you will get additional growth.

Since the pool always monitors the state of its servers and the validation process, its participants can safely count on a stable, round-the-clock profit. And often withdraw it at will at any time. Although there are also contracts with a freeze for a certain period of time.

Staking vs liquidity pool

To understand the difference between a rate and a liquidity pool, let's bring together three closely related terms, which are the following.

Liquidity 

The term "liquidity" means how easy users can convert one crypto to another. In other words, liquidity means how easy it is to sell and buy cryptocurrency without losing value. 

DeFi projects need as much liquidity as possible. For example, a low-liquidity credit platform can’t issue new loans simply because it runs out of funds. Liquidity is the essence of any DeFi protocol.

Liquidity providers (LP)

Users who contribute funds to the liquidity pools. Projects regularly pay providers part of the service fees, issue governance tokens, and conduct airdrops in some cases. 

Liquidity pool

DeFi's liquidity pool is modeled on a "smart contract" that simultaneously stores two tokens and allows fair-price transactions. The exchange value of crypto increases when liquidity levels are high, which is why the liquidity pool is considered the backbone of cryptocurrency.

For example, a USDT/XTZ pool stores USDT and Tezos coins. When a DEX user exchanges USDT for XTZ, the exchange adds USDT to the USDT/XTZ pool and returns XTZ to the user from that pool. The exchange rate depends on the proportion between the tokens in the pool. The fewer XTZ are left in the pool, the more USDT you have to pay for the exchange and vice versa.

How you can benefit from staking pool

There are many so staking opportunities that they can easily bake your noodles. Let’s scrutinize it on a practical example to kickstart your earning through staking.

How To Stake COLX In 3 Steps

COLX is a PoS privacy-based crypto that you can stake. Follow these steps to start earning using COLX staking

1. Go to the COLX website. Click on the Download COLX Wallet button and choose your OS to keep going. Once you choose, you’ll be asked to unlock your wallet.

What is mempool?

Bitcoin mempool is a set of all transactions that have not yet been confirmed and are waiting for their turn. In times of high network congestion, your transaction could hang unconfirmed in the mempool for several hours or even days.

How a mempool works?

1. The user creates a transaction and sends it to the network. 
2. The transaction enters the mempool and waits for the miner to select it for inclusion in the next block.
3. When a transaction is included in a block, it receives the first confirmation.
4. After receiving confirmation, the transaction is removed from the mempool.

With a normal network load, transactions do not spend much time in the mempool space and are quickly confirmed. However, when user activity increases, a fairly large number of unconfirmed transactions can accumulate in the mempool.

Naturally, with a decrease in user activity, the number of new transactions decreases and the network gets unloaded. In this case, transactions are gradually confirmed and the mempool becomes almost empty.

Now, as we explained what a mempool is, it’s time to describe its features and application.

What is the role of mempools?

Since a node is free to select which transactions it wants to keep in memory and which ones it wants to relay to other nodes, each node in the network has a specific and potentially different mempool. The mempool rules are therefore local.

In 2025, the role of mempools likely continues to be pivotal in the operation of blockchain networks, especially in the context of cryptocurrencies. However, specific implementations and features may have evolved to address scalability, congestion, and efficiency challenges that blockchain networks have encountered over time.

These rules have two roles: to prevent node overload and DDoS attacks and to introduce a clear standard to facilitate protocol implementation and limit errors due to the programmable nature of Bitcoin.

DDoS attack prevention

The first role is obvious: if all nodes accept all transactions instantly, the Bitcoin network will stop functioning. Some of the mempool rules are aimed at restricting the influx of transactions and include the following requirements:

1. The minimum fee paid by a transaction is 1000 satoshis per virtual kilobyte, or 1 sat / ov or 4 sat / wu.
2. The amount of an exit must be greater than a minimum amount, typically 546 satoshis.
3. A transaction can be replaced by an adversarial transaction (spending the same output) if the input concerned is indicated as such by nSequence ≤ 0xfffffffd. This feature is called Replace-by-Fee.
4. Transactions must be finalized. Otherwise, it will be rejected by the mempool.
5. The maximum number of ascending transactions in the mempool is 25.
6. The size of a transaction is limited to 400,000 units (100 KB for a typical transaction).
7. The number of signature checks is limited to 15 operations.

Limiting software errors

The second role concerns the programmable aspect of the system. In Bitcoin, each output contains a script (called "locking") which is supplemented by a second script (called "unlocking") and executed upon spending as input. This theoretically allows a wide range of actions to be performed, restricted only by the capabilities of the programming language. However, at the end of 2010, these programming possibilities were severely restricted to avoid the exploitation of potential flaws in the software code.

The order of transactions priority in the mempool

Depending on the congestion of the Bitcoin network, the transaction may therefore remain in the mempool for a certain time. However, a transaction can take priority over others. It depends on the fees paid by the user for sending their transaction over the network.

The higher the costs incurred, the higher the position of the transaction in the waiting list will be. Most often, the fee is expressed in satoshis / bytes, and miners prioritize transactions that maximize this ratio.

For example, if the sender pays more than 100 satoshis / bytes for sending their transaction, it will be included in the next block unless a large number of transactions pay a higher fee.

However, it is possible to speed up the confirmation of a transaction thanks to Replace-by-Fee (RBF). RBF is a feature of Bitcoin that allows the issuer of an as yet unconfirmed transaction to replace it with another by increasing the fees associated with it.

Some wallets natively integrate this functionality, which is particularly useful in the event of severe network congestion.

How can I speed up transaction processing?

Small block size is one of the major problems that the Bitcoin network faces. If earlier this was not a problem, now, when BTC is being actively used by millions of users around the world, it sometimes causes serious inconvenience.

Before entering the mempool, BTC transactions should include information about the amount of the commission (reward for the miner). And since there are no specific limits for it, users can set a minimum commission, up to several satoshis.

This is a good thing for users as they don't have to pay a flat fee and can save money. But for miners, this state of affairs is not very profitable. Therefore, it is quite logical that they choose transactions with the highest commission from the mempool. That allows them to generate a fair profit. 

An equally logical conclusion suggests that you can speed up the processing of your transactions by setting a larger amount of remuneration. This will give your transactions a higher priority for miners and processing will be faster.

It’s not a 100% guarantee

This approach may be efficient but still will not help solve the problem of network congestion. Here are some reasons why increasing commissions won't help users much:

• The commission is too big. If all users start increasing the reward, then they will have to pay even more to increase the priority of their transaction. And this can lead to a situation when the commission becomes very expensive and unprofitable for users.
• The network bandwidth does not change. High commission transactions will be processed quickly. But the mempool will still be filled with transactions with minimal reward.
• The problem of spam attacks. Network performance can be deliberately slowed down by attackers who send a large number of transactions with minimal fees. This causes the mempool to overflow.

How to reduce mempools?

The problem of queuing transactions included in block mem pool causes serious inconvenience to users who need to quickly conduct a transaction on the Bitcoin network. For example, in mid-August 2017, the size of the mempool was about 82 MB with the total number of mempool unconfirmed transactions up to 100,000. Some transactions could take up to a week to confirm.

The most effective way to solve the problem is to increase the network bandwidth. If miners can include more transactions in one block, the mempool will be unloaded faster and the queue will not accumulate.

Bitcoin contributors try to solve this problem in different ways. Some community members are in favor of increasing the block size. On August 1, 2017, a Bitcoin hard fork was made: in this version of the Bitcoin protocol, the block size increased to 8 MB. Consequently, Bitcoin Cash, a new cryptocurrency appeared.

SegWit

Regarding the original Bitcoin network, it was proposed to implement the Segregated Witness (SegWit) protocol. In this protocol, the block size remains unchanged (1 MB), but part of the data, namely transaction signatures, is taken out of the block size and stored in separate files. This approach helps unload blocks and allows adding more transactions to fit in the block.

The transition to the SegWit protocol happened on August 24, 2017. In the meantime, the problem of mempool congestion remains relevant, and transactions with a large commission will be a priority.

Mempools in 2025: Strategic Considerations for Traders and Asset Managers

As blockchain infrastructure advances, mempools have become critical data sources for understanding market activity, network congestion, and optimal trade execution timing. For professionals relying on crypto trading software or managing cryptocurrency automated trading bot systems, interpreting mempool trends offers a real-time edge in dynamic markets.

1. Encrypted Mempools Improve Transaction Confidentiality

The rise of encrypted mempools—particularly in Ethereum’s roadmap—has helped neutralize front-running threats by keeping transaction data hidden until inclusion in a block. This shift supports a fairer execution environment, especially relevant for users operating a crypto trading signals bot or deploying algorithmic strategies through a trading bot platform that relies on timely trade sequencing.

2. Layer 2 Adoption Reshaping On-Chain Load

High adoption of Layer 2 networks, such as the Lightning Network and zk-rollups, has reduced mainnet congestion, creating longer periods of low mempool activity. For traders running dca bots or crypto trading robot systems, this reduction in fee volatility enhances strategy reliability and backtest consistency.

3. Mempool Analytics as Tactical Indicators

Today’s crypto trading bots, especially those embedded in cryptocurrency bot trading services, often integrate mempool data to anticipate fee spikes or liquidity shifts. A rapidly expanding mempool can foreshadow increased activity across exchanges, providing a valuable early signal for adjusting grid trading bot thresholds or order routing logic in online crypto trading bot setups.

4. Institutional Order Flow and Regulation Impact

Institutional entities have increased their presence in crypto markets, influencing how transactions are batched and prioritized. This has led to the emergence of advanced exchange bot systems tailored to accommodate larger, regulation-sensitive order flows. Observing mempool behavior helps these bots adapt in real time, particularly in markets where compliance mandates more transparent execution auditing.

5. Advanced Mempool Tools Enhance Strategy Performance

Mempool visualizers and predictive analytics now form part of the standard toolkit for any professional running a cryptocurrency trading bot. These tools assist with timing decisions, optimizing cost efficiency, and avoiding periods of high fee competition—especially for operations using a cryptocurrency trade bot across multiple chains or trading pairs.

In 2025, interpreting mempool activity is not just for node operators or blockchain developers—it’s an operational necessity for professionals leveraging crypto trading bot software, signal bots, and automated execution systems. From fee optimization to market timing, mempool insights continue to support sharper execution across trading strategies.