Making Money, or in other words, creating assets has become quite easy with the rising popularity of cryptocurrency but with a risky proportion. And now that you are in the right place now, you will get a step-by-step guide on how to start buying and trading cryptos.
So, Let’s deep dive in the world of cryptocurrency and get the answers to the most common questions – What Are Crypto Reflections
What is reflection in cryptocurrency?
The concept underpinning reflection in cryptocurrency is as building blocks for new and existing crypto projects around the globe. Reflections are a component of the ‘tax’ that we pay for using the token.
What is the reflection concept?
The reflection concept is volume-dependent. This mechanism alleviates the negative sell pressure on the token caused by early holders liquidating their holdings. The reflection mechanism also incentivizes holders to retain their tokens in order to earn larger returns that are proportional to the holder’s token holdings.
What is a reflective token?
Reflective tokens like Tiki Token and SafeMoon are the two main tokens I will be looking at in detail much later. The concept underpinning reflection in cryptocurrency is as building blocks for new and existing crypto projects around the globe. Reflections are a component of the ‘tax’ that we pay for using the token.
How does the reflection system work?
The reflection system actually doubles the profit for holders that keep their tokens the longest. Reflection works by charging a penalty tax (usually in percentages) to each transaction and distributing the fee to all token holders according to the percentage of assets they are holding.