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Crypto Basics: Blocks, Fees, and Why Prices Move

🕐 5 min read · Updated 2026-10-09 · Not financial advice

Three ideas that explain 80% of crypto behavior:

1. Blockchains are slow on purpose. Every node replays every transaction; that's the security model. Throughput is scarce, so fees are the auction for block space. Congested chain = expensive fees = users migrate to L2s (that's the whole L2 thesis).

2. Liquidity moves price. Crypto markets run 24/7 across hundreds of venues with thin order books. A $10M sell on a small pair can move it 20%; the same on BTC barely dents it. This is why altcoin candles look violent and why slippage exists.

3. Cycles are sentiment + flows. Bitcoin halvings cut new supply; ETFs and leverage add demand; liquidations cascade in both directions. Most 'news' moves are flows hitting illiquid books, not information.

Practical takeaway: check gas before transacting, check liquidity before entering an alt position, and never size a trade assuming you'll get the price you see on the screen.

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