Say you loaned Rs. 100 from your father. Now you used that money, did some business and generated Rs 40 profit (cash in hand). Your net debt would be Rs 60.

Net debt free is not debt free. Debt remains a debt as long as it’s not repaid to the lender.

March 2020

After fund-raise

What exactly is “mining”?

Like most other commodities like Gold and other precious metal, There is a limited amount of the metal in the world and mining it means to find the ores and extract it out of it.

Similarly, `mining` a crypto means to spend effort and create new units of the crypto available.

Networks like NiceHash come into the picture. They provide a tool with an easy to use Graphical User Interface that makes joining the pool an easy task.

Mining is an extremely CPU-intensive, costly process. And it is only occasionally rewarding. To make it more inclusive to all participants, mining networks pay out for computing hashpower.

Miners are rewarded by crypto tokens.

The Tools

• It is a digital asset, used as a medium of exchange
• Ownership records are stored in a public ledger
• It is decentralized. i.e: It is not issued by a central authority (as opposed to a FIAT or central banking system)
• The state is maintained through distributed consensus (Do read: )
• Ownership can be proved only cryptographically, and a transaction can only be performed by proving ownership of the units

Blockchain Technology

A block chain is a growing list of digital records, linked using cryptography. Each block contains the cryptographic hash of its predecessor block.

Bitcoin

Bitcoin is the first decentralized crypto-currency. It was released in 2009.

Crypto Tokens

A blockchain account can also provide functions other than making payments (e.g: in decentralized applications or smart contracts). In this case, the units or coins are sometimes referred to as crypto tokens/cryptotokens.

AltCoins

Since then, there have been 6000+ alternatives (altcoins/alternative digital coins) that were launched after the massive success of BitCoin. Basically, any crypto other than Bitcoin can be called an altcoin. Some of them are very promising (they either make the technology better/faster or find a niche use-case). Be warned that some of them are just milking the fad.

Cryptocurrency markets are also de-centralised, which means they are not issued or backed by a central authority such as a government.

There is a common misconception that ‘Disclosed Quantity’ hides your quantity to others. What it actually does is, your stock broker (Eg: Upstox) would break your quantity into multiples of “Disclosed Quantity” and it is displayed in the market in smaller numbers at a time. Once this quantity is successfully traded, the next lot is processed and so on …

What is the need for this?

Say someone were to by 10,000 shares of INFY. If an order (buy or sell) of 10k units were to be displayed in the market at a time, there would be a possibility of panic or an un-intended sway of trade direction.

It is to be noted that DQ cannot be less than 10% of the total

Advantages

• For anyone trading in very large quantities, this can be helpful for masking total quantity and faster execution of orders (sometimes)

Disadvantages

• Online discount brokers (eg: Zerodha and Upstox) would charge per ‘order’ and not per ‘trade’
  So, say, an order of 100 shares that could have been 1 trade would now be 2 or 10 (for DQ 50 and 10 respectively) and would be charged 2x or 10x brokerage fees compared to a single transaction