Blue Wallet In-Depth Review: Features, Privacy, Currencies, Pros and Cons

Blue Wallet is one of the best free and open-sourced wallets originally designed as an iOS-specific crypto wallet. It is relatively easy to use and features a wide range of both operational and security features that also make it one of the most versatile crypto wallet apps. For instance, it is extremely light, ensuring that it doesn’t eat up your phone memory, and this also facilitates faster transactions. Its top security features, on the other hand, include QR Code technology and 2-factor authentication.

In this review, we’ll get a deeper insight into its primary operational features, customer support, security features, and pros and cons.

Blue wallet key features

Batch Transactions: One of the most innovative and unique aspects of Blue wallet is its support for batch transactions. This implies that you can bundle up two or more crypto transactions and execute them as a single transaction. This ensures that your interactions with Blue wallet aren’t just less time consuming but that cheaper given that bundling multiple transactions into one makes your transfers out less expensive.

Lightning wallets: They are as its name suggests. Wallets with support for the Lightning Network Protocol are extremely fast and unbelievably cheap. You can send, receive, and top up your wallet at lightning speed.

SegWit: If you are a crypto enthusiast, you’ve probably heard of SegWit. It’s a significant upgrade to the Bitcoin blockchain technology executed in 2017. Today, you’ll find the majority of wallets integrating this feature by default. SegWit is supported in both bech32 Native Mode and P2SH-compatibility.

Hardware wallet integration: Blue crypto wallet is considerably safe and supports a wide range of cryptocurrencies and tokens. You can, however, boost this security and make it possible for the app to support an even wider range of digitals assets and tokens. The crypto wallet app will integrate with any PSBT-enabled (Partially Signed Bitcoin Transactions) hardware wallet.

Offline transactions: Unlike most other crypto wallet apps that have to be online to initiate and execute transactions, the PSBT feature on Blue crypto makes it possible for you to send and receive cryptocurrencies while offline.

In-built marketplace: The fact that Blue Wallet operates within the Lightning Network implies it also has access to the network’s browser and associated marketplace.

BTCPay point-of-sale integrated: According to the Blue Wallet roadmap, the crypto app will soon integrate the BTCPay server point-of-sale system. This is an open-sourced and bitcoin-based payment solution that allows you to pay for your in-store purchases using Bitcoins.

Blue wallet security features

Password: Like most other crypto mobile apps, the Blue wallet is secured by a password that you set when installing the app. The highly dynamic wallet has also added several biometric security features. You can now secure the app using the face ID or Fingerprint.

Military-grade encryption: The Blue wallet is also highly encrypted. Any piece of data collected and stored within the wallet app, including your passwords, sensitive personal information, and your private keys, are all encrypted.

Recovery seed: When setting the wallet app, you will also be presented with a set of random phrases referred to as the recovery seed. Write these down and keep them safe. You will need them to either reset your wallet app password or when recovering private keys.

Plausible deniability: It is a customized feature with the user’s personal security in mind. The app allows you to set up and encrypt several other fake wallets. These come in handy in the event you are forced or coerced to give access to your wallet.

Hierarchically deterministic: In addition to the plausible deniability feature, the crypto wallet app also uses its Hierarchical deterministic feature to throw trackers off. The features allow the wallet to auto-generate private wallet addresses for each transaction that mask your primary wallet address, making it impossible to track the activities of crypto activity and transaction history.

Open source: Blue wallet is designed using an open-sourced technology that speaks volumes about its transparency and commitment to security. This implies that the wallet has been probed and vetted by industry experts with possible defects identified and corrected in earnest.

Blue Wallet’s supported currencies

Blue wallet is a multi-currency crypto app that supports both fiat and cryptocurrencies. Currently, the wallet app supports up to 20 fiat currencies, including BRL, CNY, GDP, MXN, USD, CAD, RUB, AUD, CHF, and CZK as well as 100+ cryptocurrencies that include Ethereum, Bitcoin, NEO, Bitcoin Cash, and Dash.

How to set up and activate the Blue Wallet crypto app

Step 1: Download and install the blue wallet app

Start by downloading and installing the Blue wallet app from the Apple app store, Google Play, or the official Blue wallet website. Note that while the wallet was initially designed for the iOS infrastructure, the equally effective Android version has since been introduced to the market.

Step 2: Create a Wallet

Once you have downloaded the app, the next step would be to click on the “Create a wallet” button. It is recommended to start with a BTC on-chain wallet as it might come in handy when funding your lightning wallet.

In the advanced option, you can proceed to set up different wallets PSBT-enabled wallets that include HD SegWit (BIP 49 P2SH) – multiple addresses, SegWit (P3SH) – Single address, and HD SegWit (BIP84 BECH32 Native) – various addresses. The best option for a beginner is HD SegWit (BIP 84 Bech32 Native) – multiple addresses.

Step 3: Create a password for the wallet

After installing the app, you will now be required to create a password for the wallet.

Step 4: Back Up Your Recovery Phrase

The app will then display a set of seemingly random phrases that make up your app’s recovery seed. Write them down and keep the record safe.

Step 5: Complete the Set-Up 

The app set-up process is now set, and you will be directed to the wallets dashboard. You can now start adding cryptos and fiat currencies into your app, using the in-built browser to monitor the cryptocurrency prices on the different exchanges and even interact with crypto traders on the LAPP marketplace.

How to add/receive cryptos into your Blue wallet

Step 1: Launch the Blue Wallet crypto app and clicking on the ‘Receive’ icon.

Step 2:  Click on the cryptocurrency you wish to add or receive to your wallet to reveal the wallet address and QR code.

Step 3: Copy the wallet address and send it to the party sending you the crypto or have them scan the QR code.

Step 4: Wait for the crypto to reflect on your wallet.

How to send cryptos using your blue wallet

Step 1: Start by launching the app and clicking on the ‘Send’ icon.

Step 2: Click on the cryptocurrency you wish to send

Step 3: Paste or key in the recipient’s wallet address and enter the amount of coins you wish to send. Alternatively, you can also scan their QR code.

Step 4: Confirm that the wallet address and the amount are correct and hit send.

Blues Wallet ease of use

Installing and activating the Blue wallet crypto app is quite easy and straightforward. Blue wallet is also highly customizable, and this makes it easy to use for both beginners and highly experienced crypto traders. Besides, the website supports several languages such as Chinese, French, and Portuguese, which makes it a diverse platform for crypto users across the globe.

Blue wallet cost and fees

Acquiring a Blue Crypto wallet app is free and you also won’t be charged for storing your cryptocurrencies. You, however, will incur varied transaction fees every time you transfer cryptocurrencies out to exchanges or other wallets. How much you pay for each transaction is dependent on such factors as the transaction volumes and the type of cryptocurrency involved.

If you are looking to lower these transaction costs when executing multiple transactions, you may consider taking advantage of Blue Wallet’s unique Batch processing tool. This lets you bundle together all your transfers out and execute them as a single transaction, effectively lowering your transaction costs.

In yet another innovative gesture, the Blue wallet crypto app has introduced the Replace-By-Fee (RBF) feature that lets you take control of the transaction charges and speeds. By implementing RFB in your transactions, this feature lets you increase or decrease the speed by which a transaction is executed whereby low transaction fees equal lower transaction speeds while higher fees translate to faster crypto transaction processing. Note that these fees go to blockchain miners and network administrators – not Blue wallet.

Within the LAPP marketplace, cryptocurrency trades and conversions are subjected to spreads. This implies that the different cryptos and fiat currencies sold on the LAPP marketplace are availed at marked-up prices. These spreads are highly variable and largely depend on the type of crypto involved.

Blue wallet customer support

Apart from the flexible fees and seamless transactions, its customer support is exceptional. Blue wallet is a dedicated community of crypto enthusiasts aiming to educate and improve how we make transactions. As a result, they integrate a couple of customer support features, including a live chat section, 24-hour email support, and an online documentation section for Frequently Asked Questions (FAQs).

Apart from that, there is also a community channel and a telegram group where Blue Wallet sends relevant notifications, changes, or updates. Users can also interact, share ideas, or ask questions, which makes it quite an excellent platform for anyone looking for a reliable website.

What are the pros and cons of Blue wallet


  • It operates with the Lightning network and thus benefits from speedy transaction processing and reduced transaction fees.
  • The app is multi-lingual and very user-friendly.
  • The crypto wallet integrates several innovative security protocols like plausible deniability that make it highly secure.
  • Blue wallet is non-custodial and therefore gives you near-absolute control over your digital assets.
  • The mobile wallet app is highly innovative and features a host of unique features like batch processing and Partially Signed Bitcoin Transactions (PSBT)
  • The mobile wallet app is built on an open-sourced technology and is hierarchically deterministic.


  • The online nature of the wallet app exposes it to virus threats and malicious attacks.
  • The wallet doesn’t have the multi-signature function and doesn’t support two-factor authentication.
  • One may consider the number of cryptocurrencies supported by the Blue Wallet relatively limited.

Comparing Blue wallet with other crypto wallet apps

The Blue wallet is by far one of the most innovative crypto wallet apps we have come across. It is highly dynamic and features some unmatched operational and security features. When compared to the eToro crypto wallet app, for instance, Blue wallet comes off as the most user effective and user friendly. Blue wallet users have access to a myriad of features and tools not available on eToro’s wallet, such as the batch processor, watch-only wallets, and even fake wallets for plausible deniability. eToro only has the upper hand when it comes to regulation and due to the fact that it has the backing of a more reputable brand – the globally renowned eToro Trading platform.

When compared to most hardware wallets, Blue crypto wallet app comes off as more convenient and highly dynamic. One may even consider it more innovative and less expensive. It, however, pales in the face of some hardware crypto wallets like Trezor or Ledger Nano S when it comes to the number of supported cryptocurrencies and tokens as well as the security of your private keys. Neither the watch-only nor the fake wallet features of the crypto wallet app can compare to the cold storage attribute of a hardware wallet.

Verdict: Is blue crypto wallet safe? 

Well, having introduced fake wallets, watch-only, and hierarchical deterministic security features, one may consider the Blue crypto wallet app relatively safe. The fact that it integrates with hardware wallet that not only boost the number of supported cryptocurrencies but provide an additional security layer make it even safer. We, however, would have been more confident about the wallet developers’ commitment to the security of your private keys if they integrated two-factor authentication.


Incredible Ways to Earn Passive Income from DeFi

Blockchain technology was introduced to revolutionize the traditional fiat system, and it did. However, with time, developers have found an even better way to change the system by getting rid of financial intermediaries such as banks through decentralized finance. The industry has been booming over the last few months, and more is expected in the coming year. 

Everyone’s ideal dream is to earn money with little or no effort, and crypto investors are no exception. Like any other financial system, investing in DeFi presents the opportunity to earn both passive and active income. Andreas Antonopoulos, an avid Bitcoin enthusiast, pointed out that DeFi was one way to earn passive crypto income by putting your capital to work. 

You’d certainly want your money to work for you, wouldn’t you? Here are some of the ways you can make some passive income from your initial DeFi investment. 

Income Generating DeFi Products

Besides getting rid of third parties, another prominent feature of DeFi platforms is incentivization, which, in turn, increases liquidity in the industry. Through the increased liquidity, DeFi platforms present different income-generating products, which are:

  • Liquidity Mining 
  • Staking
  • Yield Farming

If you’d rather generate some active income, you’ll need to trade on DEx platforms actively. Obviously, you’ll need to be hands-on for this approach, and your investment could go either way because of the industry’s volatile nature. If you’d rather a less risky strategy, HODLing could work for you, but then you’d have to wait quite a while before you can get some significant yields. 

Well, if you’d rather invest your money somewhere and wait for it to earn you something, let’s have an in-depth look at the options that you have. 

Liquidity Mining

Decentralized exchanges or token issuers often offer rewards to the liquidity providers on the network. The users have to deposit some ETH or ERC-20 tokens into a liquidity pool through an automated market maker (AMM). The deposit acts as collateral in the liquidity pool. 

If you’re looking to earn through liquidity mining, you’ll first need to find a pool that accepts your tokens. You can then stake them in the pool and get incentives in return. Often, the incentives are tokens that you can later exchange in a DEx. 

The risks of investing in liquidity pools is high, which is why this method will earn you more than even money markets. 


Mining new cryptocurrencies is every enthusiast’s dream. However, between the expensive technology needed and the difficulty of computational problems, not many people get to achieve this dream. 

If you’re one such person, perhaps you should look into staking your tokens. The method is an excellent alternative consensus mechanism. Most networks will require that you store your tokens in a specific wallet and incentivize various network functions. By completing certain tasks, which may include minting or burning, the network rewards you with several tokens. 

Obviously, you’ll need to be involved to some degree for you to complete the tasks required. How much involvement you’ll be needing will depend entirely on the DeFi project. 

Before you go rushing for this method, you must know that staking involves high risk- but of course, that also translates to high returns.

Yield Farming

If you’ve come across a DeFi investor, there are high chances that they make most of their earnings through yield farming. The concept is quite popular among DeFi projects, and involves moving around your crypto assets to wherever they’ll earn the highest returns. 

Yield farming allows you to generate income from the crypto assets you already have. You become a liquidity provider together with other users and add funds to liquidity pools. In return, you get rewarded with the fees generated from the underlying DeFi platform. 

Typically, yield farming will be done using ERC-20 tokens, which are built on the Ethereum blockchain. Most DeFi platforms will reward liquidity providers with multiple tokens, which comes in handy for investors who want to diversify their portfolios. 

Although it isn’t necessary, most times, the funds deposited in the liquidity pool will be stablecoins backed by the US Dollar. Depending on the platform you use, you may have the rewards as minted coins to represent your deposited coins. For example, if you deposit some ETH tokens in Compound, you’ll get cETH tokens as your rewards. 

Best Platforms for Passive DeFi Income

Now that you know the different ways through which you can earn passive income from DeFi, you’re probably wondering where to apply all the useful information. Luckily, there are different DeFi platforms you can use to diversify your crypto portfolio. Have a look at three exchanges you should definitely check out. 


If you’re interested in short term lending and borrowing, you should definitely check out Compound. This protocol is a money market for Ethereum based assets and tokens. 

Using this platform, you can contribute to liquidity pools and accrue your compounded interest automatically. 


This platform is one of the popular ones in the DeFi space and is ideal for anyone who’s looking to tap into the goldmine. Uniswap offers an automated market maker that allows users to swap ETH for ERC-20 tokens and earn transaction fees by providing liquidity. 


Aave is quite similar to Compound, but is a bit more flexible, which makes it an excellent alternative. Unlike compound, Aave users can switch between stable and variable interest rate models. Additionally, the platform features flash loans that developers can use to create dApps. 

Parting Shot

Undoubtedly, DeFi remains a largely uncharted territory for investors, including those who’ve been following the recent crypto trends. However, if 2020 is anything to go by, the DeFi craze isn’t a passing wind but is here to stay. Therefore, if you have a knack for investing in crypto, you might want to get aboard the DeFi train soon enough. 

Sure, actively investing in a relatively new venture that you don’t know much about can be risky. So, why not try to get some passive income as you learn more about it? There are different ways to achieve this, as we’ve discussed above. Like any other investment, be sure to do some research before putting your hard-earned money in any venture. 

So, what passive income strategy will you be adopting in 2021? Let us know in the comments below. 


The 2017 vs. 2020 Bitcoin Bull Run: Similarities and Differences

This month, January 2021, bitcoin reached an unprecedented all-time high of more than $41,000. As expected, the meteoric rise in prices has had everyone talking about the future of bitcoin in the financial markets. For instance, the Morgan Stanley Investment Management chief global strategist has made some bold suggestions of bitcoin becoming a global reserve currency.

Bitcoin is attracting more attention this time, and it is logical to expect more discussions about where it’s headed. 

Well, 2020 was a good year for bitcoin with a yearly gain of 303.5%, outperforming other major asset classes to justify its attention.

The force behind the 2017 bitcoin market hype was the emergence of speculative trading and initial coin offerings. In contrast, the 2020 bitcoin market showed signs of maturity with growing adoption and institutional demand, among other factors.

In this write-up, we compare and contrast the 2017 bitcoin bull run with that of 2020. What similarities are there between the two, and how do they differ? Let’s find out!

Similarities Between the 2017 and 2020 Bitcoin Bull Run

The crypto markets are ever-evolving, more so as the world comes to terms with the fact that digital currencies may be the future. Therefore, most digital currencies will probably undergo massive changes within a short time. 

Despite a 3-year gap between the king coin’s major bull runs, there are certainly some similarities. Here’s a look at some of them. 

A Strong Uptrend

Both the 2017 and 2020 bitcoin market demonstrated a solid uptrend, breaking any assumed resistances in the market. But what was this resistance? 

The apparent resistance is currently set at $20,000. But as you are aware, the 2020 bull run went over it effortlessly to record a new high of over $41k. 

Previously, the estimated trade volume was between $14 and 17,000, and the $20,000 was only a psychological block estimated using this trade volume and nothing more. There was no reason why the 2016 bitcoin market could not go over the $20,000 mark, and there is good reason to assume that the current market used it as a platform. 

Away from the talk of market resistances, both bitcoin eras recorded solid performances.

Player Psychology

The player psychology remains unchanged through different eras. 

The disbelief stage seems to be the current state, characterized by the majority of inexperienced market participants. As a result, any price rise is met by skepticism.

No doubt, there are differences between the 2017 and the 2020 market players, but the sentiments remain the same.

The outsiders’ perspective of the market is almost similar, with most of them generally skeptical and disbelieving. Still, there is a section of the outsiders that is curious and excited. This second group is most likely to enter the market and is waiting for funding and guidance to jump right in.

The second stage after disbelief is hope and recovery. Careful analysis of the 2017 and 2020 runs draws some similarities between the two phases of the market.

Google Trends

It is quite interesting that the rising bitcoin prices do not attract too much attention, and the associated cash flows from outside. Google trending is relatively low for the 2020 bull run, which is different from the 2017 levels.

Apparently, the market is still cautious like it was in 2017, even when the prices are high. The FOMO element is not entirely compelling, a stark contrast from other financial markets. 

Such rising prices from other industries would have a different effect on Google trends, and the market would not be that careful.

Multi-level Marketing (MLM)

BTCV and other multi-level teams played an essential role in the 2019 – 2020 bitcoin run. This interest by the MLM teams indicates a few things about bitcoin. 

For example, the bitcoin chart is relatively healthy, which applies for both the 2017 and the 2020 bull runs, and this oils the greed of individuals who want to make money quickly.

Despite the MLM backers’ intention, BTCV and other multi-level teams continue to play an essential role in the bitcoin market’s new capital injection. People in the MLM teams tend to invite their friends and relatives who bring in new money into the market.

Dissimilarities Between the Two Bull Runs

Undoubtedly, three years is quite a long time, and as is expected, certain aspects of the bull run aren’t entirely similar. Here’s a look at the significant differences. 

Market Background

Perhaps the most significant difference between 2017 and 2020 runs is in the market background. A few years ago, there was no pandemic, and the world was not facing economic hardships.

There’s more. 

While cryptocurrency is a legal dilemma in the US, it is taking a different shape in China. The Chinese government is showing support for blockchain and leading the way. It is only a matter of time before the neighboring countries take a similar path.

The big boys in the market, such as banking and Wall Street, are also throwing their hats in the crypto market ring. They employ technical analysis and work a lot better to determine the best course of action in bitcoin investment.

Clearly, the current cash flow is more knowledgeable and relatively smart than in the 2017 cryptocurrency market. Of course, shorting the market and other leverage concepts were still in use in the 2017 market, but not as effective. For some traders back then, it was like shooting in the dark, hoping to get something.

The smart cash flows can explain the volume of stablecoins in the larger current market. USDT capitalization is at its peak at more than $18 billion. Compare this figure to the 2016 tether capitalization of $2.2 billion; quite a significant difference.

Growing Adoption

The address analytics and network hash rate are some of the metrics you can employ to assess the bitcoin’s state. The processing power or the hash rate goes up as more miners increasingly use the network.

The 2020 hash rate is significantly higher than its 2017 predecessor, thereby highlighting improved stakeholder confidence. The hash rate in 2020 was an all-time high at 146 million. The early November mining difficulty was 19.99 trillion.

In contrast, the 2017 rate stood at 15.26 million, with a mining difficulty of 1.93 trillion. Some speculators expected the 2020 third reward halving and the resulting lowered profitability to shake investors’ confidence, but the opposite was true. The cryptocurrency experienced more growth to indicate more confidence in bitcoin’s longevity.

User growth in the bitcoin network can be seen in the growth of active addresses and the number of 1,000 BTC or more addresses. 

After the 2017 bitcoin boom, the number of active addresses dropped to a certain level. They would continue to rise to 1.19 million in late 2020. Despite the excellent showing, the 2020 number did not close the 1.25 million all-time high in 2017. The network has not experienced fresh entrants, at least not in a similar way to 2017.

The 1,000 BTC or more grew to 2,275 in December 2020 from 1,600 in early 2018, that is according to statistics from Glassnode. This figure is the best indication of positive bitcoin value prospects and vote of confidence. It also indicates an accumulation of institutions and whales in the network to show significant benefits in the market to encourage them to stick around.

1,000 BTC or more addresses from 2017 to 2020 Source: Glassnode

Project Focus

Most of the 2016 – 2017 bitcoin season generally focused on drawing and applying blockchain technology. In contrast, the focus has shifted from finding a problem to finding a solution to the current issues.

The majority of projects in the 2016 period were on finding solutions to payments, while the current ones are two-pronged: infrastructure improvement and DeFi Development. 

DeFi value is increasing and is one of the most distinguishing factors between the 2017 and the 2020 bull runs.

Binance and Stablecoins

The establishment of Binance and the emergence of stablecoins has made it a lot easier to obtain and trade in bitcoins, something you cannot say about the 2017 season.

Obtaining XRP, TRX and other Altcoins was as tricky as it can get. You could only get them through separate parties such as Remitano, Santienao, or the black market.

Institutional Demand 

Strong institutional demand was the main propeller for the 2020 bitcoin bull run. 

The signals of this demand are sizable investments from top financial organizations and massive growth in bitcoin whales. There is currently some competition between leading institutions to establish crypto services.

During the 2017 bitcoin boom, there was skepticism among top institutions about the crypto assets. Some of them, like JPMorgan Chase, repeatedly slammed bitcoin and caused a price slump that year. 

Since then, big names such as MicroStrategy have changed their perspective about bitcoins, and in July 2020, they revealed a $250 million cryptocurrency purchase, with an additional $50 million that December. Others like Square Inc and MassMutual invested $50 million and $100 million respectively in October of the same year. 

It does not seem like the revitalized institutional interest and demand in bitcoins is about to stop anytime soon, a stark contrast to the 2017 bull run. The demand growth is quite apparent among other segments such as institutional bitcoin whales and crypto funds.

Final Thoughts

It is not up for debate that the current bitcoin market is more mature and developed than its 2016-2017 counterpart. 

Perhaps the current economic status, with coronavirus and austerity measures, is playing the financial markets to cryptocurrencies’ hands. Investors are generally looking for fiat alternatives to safeguard their wealth and income capability, and crypto-assets are somewhat living up to their expectations.

While the player sentiments and the market cycle for the 2017 and the 2020 bitcoin bull runs are similar, smart analysis methods and current knowledge of blockchain technology make all the difference for investors. 

The 2016-2017 bitcoin bull run may have been driven by curious investors with a disposable income who wanted to see what comes out of it, and they were rewarded for it. Unlike the 2017 bull run, the 2020 bitcoin market is easy to navigate and transparent.



How Can Small Businesses Benefit From Accepting Crypto Payments?

Ours is undoubtedly an exciting time to be alive. Today, we live in a world where technology permeates every facet of our lives. Accordingly, innovation is challenging, long-held beliefs and norms across different fields. 

The enterprise sector is one that innovation has massively impacted on. It has had to contend with the blockchain revolution currently sweeping through the globe.

A vital offshoot of the blockchain revolution is cryptocurrencies. Their utility value has many in the financial sector buzzing about them. But where do they fit in the small enterprise’s grand scheme of things? 

In this article, we take a look at how crypto payments can benefit small businesses. Let’s delve right in! 

Preventing Fraud

Any business will have money coming in and going out. These activities provide ripe circumstances for the mushrooming of fraud. 

To mitigate such occurrences, entrepreneurs need to be aware of all the transactions involving their business’. Here’s where crypto payments come in handy.

Cryptos use blockchain technology which provides an immutable record of all transactions a business engages in. All exchanges undergo public verification before their completion. 

This validation curbs fraud. Additionally, monies received go directly into the business’ wallet(s). A customer, therefore, cannot reverse funds already paid. 

Streamlining Transactions

Cryptocurrency payments are in real-time. Their peer to peer nature eliminates intermediaries who are an unnecessary bottleneck in transactions.

Traditional payments, on the other hand, tend to be slow. Bank payments, for instance, can take days to conclude. At the same time, some electronic payment systems, for example, PayPal may be restricted in some countries.

At a time when speed is of the essence in any matter, near-instant payments are beneficial to both of the transacting parties. Their importance shows when it comes to international payments.

Attracting New Customers

Cryptocurrencies are a hip means of transacting. Consequently, they find favour with many millennials. Adapting crypto payments is a definite means of attracting more of them. 

This way, businesses get to expand their customer bases. But adopting crypto payments needn’t be a generational matter. Most customers crave convenience in transactions.

Now crypto payments offer more than convenience in the conclusion of trades. Outlets affording their customers’ ease of transactions tend to attract more of them. 

Accepting crypto transactions sends out the message that a business is innovative; it moves with the times. These qualities are strong magnets that attract would-be customers.

Lowering The Transaction Costs

Let’s face it; we all like to keep a lid on our expense. Business ventures are about the maximization of profits. It follows, therefore, that cost reduction features prominently in their plans. In crypto payments, they have an opportunity to cut their operating costs further.

How then do cryptos enable them to cut costs? The answer is one word-fees. Since Cryptocurrencies are decentralized, there’s a considerable reduction in fees accruing from any exchanges. 

Whereas leading online payment platforms like PayPal charge fees of up to 4% crypto exchanges can levy fees lower than 1% of the transacted value.

Things get even better when the interactions are purely P2P. Besides purchasing a crypto alert, you don’t pay fees at all! Monies saved from either the reduction or elimination of fees could go to developing the business further.

Eliminating Chargebacks

Today’s businesses have to contend with rising cases of fraud. Credit card chargebacks are common. 

A customer would make an order and pay for them. Once they confirm that their orders are in transit, they cancel the payments. This way, they acquire goods and services they haven’t paid for. On the other hand, the seller remains to count their losses. 

Crypto payments eliminate chargebacks. As stated earlier, the transactions are P2P. The customer cannot claim a chargeback after initiating a transaction.

Once the funds hit the vendor’s wallet, there’s no way of instituting a reversal. That is unless the vendor chooses so. 

Expanding Market Reach and Sales

Small businesses have more to gain from going global. First, they expand their market and secondly revenues.  

Cryptocurrencies are ubiquitous. Consequently, they are critical enablers for borderless trading. 

They eliminate the bottlenecks of international trade characterized by cashflow impediments, time and the high exchange rates.

Brand Publicity

Businesses crave visibility and what better way to do so than by embracing crypto payments. 

How’s that so, you may ask. The answer is simple. The mere mention that your business supports cryptocurrencies is enough publicity. It sets you apart from the competition, something that draws you, customers.

Again, you get to tap into a network of dyed in the wool crypto enthusiasts. The crypto space has passionate communities of users that support and publicize each other.  

Besides crypto projects invest in promoting their partnerships and adoptions. Thus they help sell your venture.

Reducing the Volume of Abandoned Shopping Carts

Picture this. You’ve finally made your selections and head to the checkout counter. You whip out your card or whatever payment method ready to conclude the transaction. But you can’t, because you find out that the business doesn’t accept your payment mode. You have no choice but to leave without your items. 

Off-putting won’t you say?

That is the reality that many customers face. One reason for customers abandoning their carts is a business not supporting their payment method. 

Cryptos expand the payment options for customers. Their global acceptance helps in reducing the volume of uncompleted checkout boosting revenues.

Personalized Tokens 

A small enterprise can draw in customers through the development of their cryptocurrencies. They can personalize and incorporate tokens into a pre-existing customer bonus system.  

Thus they reward shoppers for their purchases referrals and do reviews on their offers. The operators could designate the tokens as currency, discount credits or a loyalty system for VIP and repeat customers.

Are There Downsides To Crypto Payments?

It shouldn’t be lost that adopting crypto is all rosy. Several shortcomings come with their usage. Consequently, one should tread the crypto adoption path with caution.

For one, they’re highly volatile.

Again they are susceptible to cyberattacks their inbuilt security notwithstanding. Further, despite their masking of the transacting parties’ real identities, their public display discomfits the privacy-conscious.

Final Thoughts

The crypto revolution has arrived. In its wake, it continues to influence all aspects of our lives. Today any entrepreneur will be naive to ignore its impact on how we transact business. Small businesses will find a lot of good in their adoption. That said, they have their downsides too. Ultimately every business will have to decide whether or not to adopt them. It also requires a lot of prudence in how one goes about incorporating them in their venture.



6 Practical Tips to Protect Your Anonymity in the Crypto Space

Most researchers proclaim cryptocurrencies like Bitcoin as private and encrypted. However, in the Threat Landscape Trends report for Q2 2020, US cyber-security vendor Symantec said cryptojacking has spiked by 163% compared to the previous quarters

So are your cryptocurrencies untraceable? The answer is yes, and no. While cryptos like Bitcoin offer better privacy than traditional payment methods involving a third-party intermediary like a credit card provider, it is still not as anonymous as a cash transaction. 

As enthusiasts push for the broader adoption of digital assets, anonymity in the crypto space becomes an ever more contentious issue. Governments, banks, and lawmakers are now implementing know-your-customer (KYC) and anti-money laundering (AML) regulations.

Administering KYC and AML is in the best interest of protecting users of cryptocurrency platforms. However, they add another layer of bureaucracy that compromises your ability to stay anonymous when buying and selling cryptocurrency. Despite these privacy issues, there are ways to enhance your privacy in the crypto space.

It’s quite frustrating to think that you leave a trail that could lead back to you whenever you complete a crypto transaction, isn’t it? Well, here are six helpful tips to keep your wallet away from the prying eyes of the internet. 

Use the Best Software Wallet

A software wallet is the most common type of Bitcoin wallet which is easy to access and use. Just download the wallet to your desktop or laptop device. The software wallet provides you with a public and private key. You can then transfer Bitcoins in and out of the wallet.

The ideal anonymous wallet shouldn’t ask for your personal information like your name, Email address, phone number, or postal address. Some of the best bitcoin wallets include Ledger Nano X,, Samourai wallet, Electrum wallet, and Incognito wallet.

Let’s look at one of the best Bitcoin wallets — Electrum.

Electrum Bitcoin wallet runs on Windows, Mac, and Linux, and you can download it for free. It gives users the ability to determine the level of security they wish to use. For instance, you can form a multi-signature wallet; then, you can also elongate your seed phrase with custom words. 

Electrum provides a password seed that allows you to recover your coins if you lose your private key. You are only required to keep both of these safe, and your funds will be secure. 

Anonymous software wallet perfect for the more advanced Bitcoin holder who wants excellent security features and customizability, all in a simple layout.

Mix Your Bitcoins Using a Mixer/Tumbler

We’ve all been there; you want to complete a crypto transaction in a rush, so you blindly use the same address you did as the last transaction. Well, you probably shouldn’t because doing so builds a list of transactions that can be associated with the wallet you used. The result? A little forensics digging could lead internet sleuths right to your real-world identity. 

Those transactions could easily be associated with a real-world identity with forensics digging. Bitcoin mixer is required to hide identity since there is no protocol-level procedure to anonymize these bitcoins. 

Bitcoin mixing is a procedure that tries to break the linkability or traceability. Users are allowed to “mix” their coins with other users in a pool of funds. By doing this, the link between their Bitcoin addresses and their real-life identities is hidden, making it easier for users to complete private transactions.

Using an address severally can make a user be de-anonymized through Taint Analysis. Use different addresses for every single transaction you make.  Making unique addresses when transacting is a good practice to ensure anonymity when using Bitcoins regularly. By doing this, it would be hard to link to 2 or more transactions to you.

Sign Up for Cryptocurrency Exchanges without KYC Verification

Withdrawing your money from an exchange with KYC verification is more complicated and time-consuming than sending money. Such platforms often require their customers to submit two or more personal identification pieces, and the submission itself doesn’t guarantee verification.

Exchanges with KYC require clients to identify themselves by verifying documents such as home addresses, phone numbers, Passport, ID, or driver’s licenses. The user’s personal information could be compromised, and  the verification interferes with the anonymity of crypto exchanges, which is crucial for many investors. 

The best anonymous cryptocurrency exchanges without KYC Verification include; Binance, Kraken, ShapeShift, Changelly, and Bitcoin ATM. These trading platforms are a haven for investors who would instead not give their personal information to trading platforms.

Binance, the world’s largest crypto exchange, is highly reputable if you are looking for a deal without the stringent KYC verification.

It allows you to withdraw around 2 BTC per day with an email address only.

Get a Dedicated PC and a Secure Network

Get a device that is solely dedicated to your cryptocurrency activities to lower the odds of vulnerability. Appliances for surfing and pleasure activities could have viruses and ransomware. 

You could, for example, use an OpenVPN, which conceals online transactions. They are commonly used by researchers, journalists, and users who are concerned by corporations’ blatant breach of privacy.

Tor and VPNs also incorporate secure protocols to protect the user’s identity by hiding their IP addresses, web activity, and locations. They are also configurable, meaning a user can change their IP and locations whenever they wish.

Take Advantage of Escrow Services

For P2P transactions, you can’t always be sure of the other party’s identity. So how do you ensure you aren’t being duped? Escrow services come in handy in such situations.

An escrow is a financial service where a third party holds and controls the payment of the funds needed for two parties involved in a particular transaction

Escrow ensures fraud protection for both buyers and sellers all over the globe. At every step of the process, there is a verification of your transaction with proven tracking.

Escrows are handy in the case of a transaction where a considerable amount of money is required and a certain number of obligations need before payment is released

Install an Ad-blocking or Anti-crypto Mining Extension on Your Web Browsers

Most cryptojacking scripts come through web ads; cryptohackers rely on victims to execute the script. Users click on an attachment or link to implement and run the crypto mining script or browse to a website with infected ads.

Installing ad blockers can be an effective means of stopping them as they detect crypto-mining scripts. Ad blockers prevent advertisers from tracking your behavior and keep you anonymous.

The most practical anti-cryptocurrency mining tools that you can download on your PC include No Coin and MinerBlock.

Final Thoughts

Privacy is a craved feature in the virtual world, which is why the most popular digital currencies are those that offer exclusive privacy features. Most crypto investors want to keep their transactions from the reach of third parties such as governments, and criminals after their crypto wallets. 

Bitcoin is continuously a target of government agencies despite being the most popular choice for crypto investment. Agencies have become quite good at tracing Bitcoin transactions, creating a strong incentive to switch to more private cryptocurrencies.

Still, hackers are making it harder to spot their efforts. While older scripts maximized CPU use, current crypto mining scripts control about  20 percent, making them undetectable.

Hackers do not need significant technical skills for cryptojacking. According to, The New Gold Rush Cryptocurrencies Are the New Frontier of Fraud, cryptojacking kits are available on the dark web for only $30.

With the preventative steps, you can reduce your exposure and vulnerability to browser-based attacks.

Well, there you have it! 6 proven methods that you can use to maintain your privacy in the crypto world. Which of these methods have you tried before? Let us know in the comments section below. Don’t forget to suggest tips that have worked for you and aren’t included in the article above!


7 Countries That Are Betting on Decentralized Technology

Blockchain technology is progressing rapidly, especially as a hands-on solution for many existing issues in various industries. Furthermore, with COVID-19’s stress on economies globally, countries had to think outside the box to sustain every undertaking. As such, it opened doors for the assimilation of blockchain in different fortes to ensure smooth running.

A recent report shows the current and future potential of blockchain as per the year 2020. In that case, it displays the assessment of different factors pushing the technology forward and its market in different regions. 

As a central focus, the Asia Pacific region, North and Latin America, Europe, Australia, and the Middle and Africa regions showed great promise in adopting blockchain. It also flags different obstacles that the technology faces despite its sure progress.

A Promise of The Future in Decentralized Technology

In the past, distributed ledger technology (blockchain technology) has been tied to improving the financial sector. However, multitudes are discovering other use cases for the technology in boosting other areas including banking, healthcare, supply chain management, gambling, voting, science, to mention but a few. 

It all began with the launch of bitcoin in 2008, introducing cryptocurrencies into the monetary sector. Blockchain implements a decentralized system to store transactions (blocks) after their verification in an immutable ledger. Block validators in all the nodes on a blockchain have to verify that a transaction is valid before adding it to the chain. The whole process creates a transparent and secure way to conduct all operations.

So far, it has established an environment to achieve milestones that would have been impossible in the past. Currently, cash transfers globally are instantaneous, mitigation of information loss, pumped up security, low transaction costs, smart contracts, and more. 

Countries Looking Vouching for Blockchain Technology

Blockchain and crypto enthusiasts have been waiting for governments to adopt blockchain technology to better the economy. A significant breakthrough in this advanced space is more countries looking for ways to introduce their digital currencies. Some, including China, Lithuania, Bahamas, and Sweden are a step further in Central Bank Digital Currencies. However, more regions are quickly following suit and discussing the best ways forward as far as the issue is concerned. 

CBDC ideas create hope that more regions are opening up to the idea of cryptocurrencies and DLT as a whole. Furthermore, decisions to regulate the blockchain sector are also a gateway to many embracing the tech. Without further ado, here are 7 countries with impressive progress in leveraging blockchain.


China proves itself as an innovation hub and a force to reckon with in its technological advancements. Despite its ban on cryptocurrencies and any crypto-related activity, it shows the greatest adoption in the blockchain. It employs the tech in investments, payments, and technological infrastructures. Companies to take note of are Bitmain, Alibaba, Tencent,, Ping, and more.

As a matter of fact, the country created notable plans to develop the technology into its sectors. Among the reasons for this decision are its efficiency, scalability, and cost-effectiveness. It further introduced the Digital Yuan into its payments network to eliminate the need for physical currencies. 

One plan to put in mind is the Blockchain-based Service Network (BSN), which will allow developers to create dApps for various services worldwide. The plan is a pathway for interchain, permissioned, and permissionless dApps connected to a series of blockchains. The smart contracts are present to ensure transparent transactions on the internet of blockchains. More will be seen from the industrial hub as time goes by.

Dubai (UAE)

Dubai is among the most successful places in the world, offering a space for investment opportunities. It introduced blockchain into its transactions, following the Emirates Blockchain Strategy 2021 and The Dubai Blockchain Strategy. Both work towards turning Dubai into a full blockchain-governed city with all transactions under the technology. Furthermore, it hopes to save costs while creating fast, secure, reliable, and scalable solutions.

The city hopes to continue implementing blockchain into tourism, gas and oil production, transport, processing documentation, real estate, etc. Another important contribution is Dubai putting into motion the Global Blockchain Council looking into ways to expand blockchain applications throughout the UAE. Its members include government entities, international institutions, blockchain companies, financial firms, etc.


Australia recently released its National Blockchain Roadmap, indicating its increased interest in creating a blockchain-based ecosystem. The roadmap’s objectives surround regulations, partnerships, and developments. It tries to identify any challenges it might face during the implementation of blockchain’s use cases, including finding the skilled personnel. 

Australia anticipates boosted productivity, new opportunities for businesses, expansion of different sectors, saving costs, developing digital technologies, etc. One driving factor that may ensure the project’s success is the spiked interest of blockchain by its citizens and companies. In the end, it targets data preservation, security, transparency, and joint efforts to progress. 


Liechtenstein is working towards being the dominant blockchain hub worldwide. As such, it is the first country to implement comprehensive blockchain regulations. The country introduced the Blockchain Act in 2016 while the Parliament passed the law in 2020. Considering the increasing number of blockchain users, Liechtenstein hoped that the Blockchain Act would be guidance and insurance for all blockchain users.

Furthermore, the country considered building a well-regulated structure to help in building the future of blockchain undertakings. While the Act’s focus is on tokenization of digital securities, it will delve beyond the financial realm into supply chain, real estate, transport, communication, etc. 

The Liechtenstein Financial Market Authority will be the regulator for all activities concerning the Blockchain Act. It is well-assimilated to international laws of blockchain transactions, including AML and KYC, enabling it to blend into local and global blockchain systems.

South Africa

South Africa stands as one of the most industrialized and infrastructurally developed countries in Africa. It is also leading in crypto activity both in the continent and globally. South Africa envisions blockchain technology as Africa’s future and a way forward to expanding its economic power. Therefore, it takes to heart spreading blockchain education throughout the continent. Some of the startups leading in the same are TariLabsU, UABA, and BECSA

Moreover, the country hosts annual Blockchain Africa Conferences that attract blockchain gurus worldwide to discuss blockchain’s future worldwide. It further encourages ideas on how best to implement blockchain into real-world use cases. This platform is an excellent place to drive blockchain adoption showing increased South Africa’s interest in the technology. Finally, it is home to an array of blockchain startups looking to expand services into different sectors of the African community, such as finance, energy, business, gaming, real estate, communication, and many more.


An ideal way to look into the US government’s faith in blockchain technology is its expanse in cryptocurrencies. The country has long since introduced regulators to watch over crypto transactions within the country. Some include the Financial Crimes Enforcement Network (FinCEN), The Securities and Exchange Commission (SEC), and the Office of the Comptroller of the Currency (OCC). The OCC recently gave banks the go-ahead to transact stablecoin transactions, showing that the government is slowly accepting blockchain and cryptos.

Most entities believe that USA absorbing blockchain makes it a fiercer competitor to China. Looking past all the exchanges and leading blockchain development companies based in the country, many hope to implement blockchain into elections. The process will eliminate various discrepancies present. The idea is an indicator of the baby steps the USA is taking to achieve a blockchain-powered system. 

Latin America

The Latin America region is one riddled with economic difficulties. This factor comes by due to the constant inflation that leads to their economies crashing. During the COVID-19 pandemic, most citizens turned to cryptos for investments and a way to secure their financial future. But the story goes on; Latin America is home to many blockchain startups aiming at improving the livelihoods of its citizens. 

For instance, Kushki is a blockchain payment system working across Latin America while offering support to Latin American service companies like Cabify. Ecolones is a Costa Rican project targeting recycling plastics while giving the community incentives to encourage their participation. Such companies are spreading across the region, providing people with education, job opportunities, investment opportunities, identification documents, and so on.

Several entities view blockchain as the savior of Latin America, and these startups are the beginning of its evolution into a new era.


In a futuristic world hoping to achieve new inventions, blockchain is the right tool to dive into the unchartered waters. The technology’s market is hastily on the rise while most continue to see the benefits it offers. Governments hope to become global technological and investment giants through blockchain. 

On the other hand, citizens are finding new gateways for secure, sustainable, cost-efficient,  options. Despite challenges facing its adoption, the progress is worth noting.

The countries above are among the many placing their bets on blockchain. To expand the scope of all use cases worldwide, countries are in a race to see the winner in adoption. However, it is necessary for the sector professionals to join hands and explore all options thought impossible to create an evolved global economy. The question is a matter of when not how.



What Are The Top 10 Ethereum Dapps?

The internet is a continuously evolving space, and applications are some of the amazing products of this evolution.  They are especially dandy in saving everyone the time to search for their favorite websites on the search engines. Currently, there are over 5 million applications in total on Google Play, Apple App Store, Amazon Store, and Windows Store. 

However, decentralized applications are quickly gaining traction over centralized apps. Despite the mindblowing variety existing, Ethereum blockchain is the main basis for dapp functionality. In that case, many DeFi protocols have gone ahead to integrate dapps as a bonus to their ecosystems. 

Their decentralized nature enables the free-flow of information without a central entity governing it. A plethora of them use open-source software that can help other developers come up with theirs. Safe to say, dapps are here to change today’s internet for better efficiency, diversity, privacy, security, to mention but a few. 

That said, let’s get into 10 Ethereum dapps you should know about.


Aave is an open-source protocol bringing the concept of lending into the crypto world. The decentralized platform enables investors to secure adequate incomes by depositing on lending pools. Therefore, users realize interests depending on the lending demand of the crypto market.

On top of that, borrowers have access to both undercollateralized and overcollateralized loans emanating from the same pools. 

At the core of Aave’s lending services lies 16 digital assets, whereby 5 are stablecoins. There are also flashloans going for a 0.09% fee while regular borrowed loans carry a 0.01% fee. In most cases, smart contracts experience unexpected glitches that lead to financial losses. 

To mitigate this risk, the ethereum-based platform conducts regular audits that ensure the smart contract performs effectively.


Balancer gives portfolio owners the chance to design balancer pools, which adds liquidity to the entire Balancer network. Since everyone can include a maximum of 8 digital tokens, the protocol allows pool creators to modify the token weights into specific categories. 

Ideally, the pools act as automated market-makers because users can trade against any tokens available in the pool.

Balancer pools are guided by smart contracts divisible into two sections. One section contains controlled pools governed by a wallet address responsible for adding or removing liquidity to the pool. The other category is a public pool offering anyone the freedom to swap digital tokens and add/remove liquidity in the pool.

Furthermore, the ecosystem allocates nearly 7.5 million BALs every year to liquidity providers. Security concerns are handled by Open Zeppelin and Trail of Bits, who carry out auditing procedures on the protocol’s smart contracts.

Yearn Finance

Running on the ethereum blockchain, Yearn Finance incorporates various DeFi functionalities on one platform. At Yearn, investors can look forward to maximizing their earnings with the Vault product. Vault robots automate the yield generation process after depositing your digital assets.

To safeguard investors against financial losses, Yearn provides an insurance feature that covers unforeseen losses on smart contracts and ethereum-based projects. Zap is yet another distinct feature on Yearn, allowing you to swap from a variety of stablecoins. 

YFI token holders exercise governance and control over the whole platform through a multi-signature wallet of nine members. To obtain the YFI token for pool staking or governance purposes, interested users can acquire them on decentralized exchanges and take part in voting for significant proposals.


Ren protocol adopts an interoperability approach for cross-chain lending, decentralized applications, exchanges, and many more. At RenVM, users can access and transfer any token of their choice across different blockchains. 

Moreover, the decentralized machine protocol maintains the utmost secrecy levels via Shamir’s secrets, a method used to avoid non-disclosure of data. The network leverages digital machines called darknodes, which are duplicated and spread across the globe. Darknodes communicate with each other and team up to provide cutting-edge computational power.

However, machines or virtual programs fail from time to time, which is why Ren assures its users that the network will continue functioning even in the absence of darknodes.

Ren was launched to bridge other blockchains and instill a permissionless ecosystem. Hence, other DeFi platforms can use this technology on their projects and existing smart contracts.


Sometimes, crypto lending can be a hectic option, especially with the volatile nature of cryptocurrencies. MakerDAO, however, counters the crypto loan issue by introducing its stablecoin dubbed DAI. To start on the lending functionality, users need to lock up a certain amount of ETH in Maker’s smart contract to generate DAI coins. Remember, locking up massive ETH amounts gives you more DAI.

By merging the loan with a stable currency, users can have a more accurate figure of what they can pay back. At times, the ETH collateral price could flop way below the DAI value borrowed. When such a scenario happens, the ETH collateral is used to settle the borrowed DAI.

MakerDAO is a fully autonomous organization governed by MKR token holders. If the value of DAI sways away from the one-dollar peg, more MKR will be produced. Consequently, if DAI stabilizes, MKR tokens will be burnt to deplete its supply.

The ethereum-based organization is a genius invention from Rune Christensen, who is also the current CEO.


Compound is one of the most convenient platforms to access liquidity. The liquidity comes in when a user distributes his/her assets to the protocol. Additionally, the platform is also a peer-to-peer lending platform advancing digital asset loans to users.

However, to be eligible for the loans, users have to supply their assets to the protocol first, to be used as collateral. A new batch of cTokens is created once investors distribute their assets to Compound. For instance, if investors contribute USDC to Compound, they will receive cUSDC in return. 

In terms of security, the ethereum-based protocol undergoes auditorial supervision by Gauntlet and OpenZeppelin companies. Users can get a hold of cTokens by minting them through a Metamask wallet, ethereum wallet, Huobi wallet, to mention a few.


IDEX poses as a user-friendly decentralized exchange leveraging smart contracts and the ethereum network. The exchange came into the limelight in 2018 and is one of the largest Dapp on Ethereum’s ecosystem. It allows users to trade ETH and ERC-20 tokens on peer-to-peer grounds. Traders who make orders which are already in the books incur a 0.2% fee, while those who come up with new orders are subject to a 0.1% fee. 

Security is always one primary cause of worry for traders since the exchange enables them to store funds. Nonetheless, IDEX guarantees the best protection for your assets by storing your funds on the ethereum blockchain. That way, malicious individuals don’t stand a chance of hacking or illegally accessing your belongings. 

On top of that, the exchange integrates Ledger Nano S, a cold storage instrument meant to safeguard a trader’s digital assets. 


Blockchain collectibles continue to get massive attention from investors worldwide, with CryptoKitties being one of them. CryptoKitties are collectible cats residing on the blockchain network. Each digital cat is unique, possessing different characteristics, and users can buy and trade them like typical digital assets. 

Unlike the regular currencies, which are fungible, CryptoKitties are non-fungible tokens. Therefore, every feature that the digital cat has is encoded on the ERC-721 token. Moreover, its decentralized architecture makes it a valuable digital token because no single entity can add more CryptKitties to the network. Owning the ERC-721 token requires users to have an equal amount of ether to pay for a kitty. 


Curve is an ethereum-based platform combining the exchange of cryptocurrencies and earning from liquidity pools. The decentralized exchange contains multiple pools, each with different cryptocurrencies.

Here, traders can earn up to 300% profit on all deposits with the exchange, and the earnings are payable in the form of cryptocurrencies. Curve minimizes the chances of financial losses by giving you a diverse set of assets to execute trades. 

Additionally, losses are also mitigated by enabling stablecoins to be swapped with cryptocurrencies. Curve maintains the most incredible security level by utilizing high-end encryption strategies on a trader’s funds and transaction operations.


dYdX is a one of a kind margin trading ecosystem founded on the ethereum network. The decentralized platform is unique because it allows traders to make crypto predictions based on their price movements, thus explaining the concept of marginal trading. 

Traders will only profit if the bets are correct and ultimately lose if the predictions are wrong. dYdX extends its lending services to customers, provided they have substantial collateral to qualify for the loan. Lenders also profit off any deposits on the ecosystem and with every new block mined. 

At dYdX, lenders and borrowers engage in a global lending pool. To kick start the dYdX journey, you will only need a MetaMask or ethereum wallet similar to other decentralized applications.


Rest assured, ethereum is taking over the world of decentralized financing. Its futuristic advancements, such as smart contracts, enable a modernized way of executing trades on an ecosystem.

Dapps harness the same technology bringing some of the traditional financial system concepts into the new era of cryptocurrencies. As we transition to the digital world, decentralized applications will be a haven for most investors to realize or make passive incomes. 


6 Best Cryptocurrency Data APIs for 2021

If you think forex day trading is volatile and commanding attention, think crypto trading. Crypto markets don’t sleep, and they were the most lucrative in 2020. Their 2021 potential is exponential, but the problem for most investors is tracking the Mega Big Data generated.

Crypto markets are rich with coin diversity, and DeFi is making projects to move at unprecedentedly fast paces. As an investor, you can’t seem to catch up with all the developments, crippling you with FOMO.

It’s relatable if you are wondering the best way to track the value of your crypto assets. Well, your crypto wallets should hold different cryptocurrencies, and investors prefer wallets that link to select exchanges.

A reliable wallet should have the capacity to contrast market data on leading exchanges. It should determine the real-time value of your various digital assets. The tracking ability of wallets integrates through websites, apps, or different software that interoperates with price changes of assets on different preferences.

For example, some data APIs are suitable for regular traders and unnecessarily risky for long-term asset holders. Moreover, some profile trackers are suitable for small-scale traders and incomprehensive for diversified scale traders.

Despite the diversity of utility, investors should seriously consider the following aspects in any cryptocurrency data API:

  • Security: safety is a big concern, and your portfolio tracker should emphasize securing your assets. Since these APIs link to your wallet and select exchanges, they expose your assets via possible data leaks. Always insist on integrated multi-layer encryption and two-step factor verification.
  • Straightforward User-Interface: cryptocurrency data APIs are supposed to make your investment decisions easier and less stressful. Just a glance should impress you with the current value of your fungible and non-fungible assets.
  • Wide Coin Range: crypto markets are diversified with thousands of digital assets, but you can’t invest in them all. Different portfolio trackers specialize in their ranges for various target niches. Prefer APIs that accommodate your appetite and specialization when it comes to diversified investments.

So, let’s have a look at the 6 crypto data APIs that you should definitely check out. 

Crypto Pro

Crypto Pro is ideal for users on iPhone, Apple Watch, and Mac for tracking the value of assets in your wallet. It integrates with your preferred exchanges. Moreover, the iCloud syncing empowers you with TouchID and FaceID lock to enhance your safety and protect your funds.

The candlestick charts with indicators make the interface clean and easy to interpret. This service also offers premium, advanced notifications on market developments empowering you with reliable insights to drive viable investment decisions.

The API allows you to customize widgets and track all your assets of interest. For extra user-privacy, Crypto Pro doesn’t track your user data, and no one is interested to know your favorite trading patterns.

Moreover, all data is encrypted and stored locally on your device. All you need is to allow the app to send price alerts and market notifications.

Binance: Best Overall

This is the best cryptocurrency data API for frequent traders who indulge in all major assets. This service doubles up as a reliable, decentralized exchange that offers free services. Binance beats the odds by delivering an appealing user interface despite all the information it packages.

Since Binance was hacked, it upgraded security protocols, and it imposes two-step factor verification to diminish risks. Still, Binance is limited for frequent traders, and long-term investors should hold and track assets with safer APIs.

LunarCRUSH for Social Listening

This app supports web browsing, and it tracks the prices of thousands of assets. It collects social posts on crypto markets and has cataloged over 100 of them. The classification process is supported by artificial intelligence, and the User Interface displays them in captivating metrics. You won’t get better access to social insights on crypto markets.

Social influencers and the opinion of major players in DeFi and traditional finance affect demand-and-supply forces. Therefore, you can tell when select assets are heading for bullish or bearish trends. Best of all, LunarCRUSH offers real-time price alerts and market-oriented notifications.


This app does more than offer standard market data, going an extra step with the “Gainers and Losers” aggregated news feed. CoinMarketCap doesn’t charge for the extra data, analysis, and qualitative insights.

You can evaluate your assets for on-chain activity, liquidity, and risk. However, the free plan limits your calls per month. This app is great for individual investors and small-scale businesses, but it isn’t ideal for intense development purposes.

This price-prediction model is a favorite among CoinMarketCap users who track their prices in real-time. The only reason it doesn’t top this list is that Binance acquired it.


CoinStats allows you to sync your wallet with over 100 exchanges and other wallets. It provides for easy syncing across Binance, Coinbase, and other platforms for price metrics.

This app allows you to track the price of your bitcoins and other assets. It is specialized for different browsers, including:

  • Desktop.
  • Web.
  • iOS.
  • Android.
  • Apple TV.

KryptoGraphe for Insightful Investments

Knowing your assets’ worth is a cliché with this API. You can access ad-free premium versions for $4.99 monthly, and you can get personalized investment pointers. KryptoGraphe will contrast your trading positions with those of others trading your capital level and preferred coins.

You can get a gamified feel that sharpens your skills, keeping you updated with the most relevant, innovative trading techniques. This app also allows you to integrate two exchanges on free mode, and you can also enjoy:

  • Up-to-date market news.
  • Simplified, comprehensive metrics.
  • Investing insights.

Parting Shot

Crypto markets are as diverse as they are volatile. You can reap profits and interests by trading actively or investing passively. While you can’t invest in all digital assets and trade on all exchanges, you need easy-to-interpret data on all of them. Remember, great opportunities are precious, and you need to discern them the moment they exist.

You can either track your crypto portfolio manually or rely on the suggestions we’ve just listed. They’ll help you make quick and witty calls for your yield farming and liquidity bids. We’d also like to know which cryptocurrency data APIs you rely on and why you think they are great for trading within your niche in DeFi.



USDT vs. USDC: Which one has Better ROI?

The main reason for designing stablecoins was to provide some form of stability in the cryptocurrency world. Crypto assets are profitable but highly volatile.

No doubt, stablecoins have found their place in the cryptocurrency industry, not only as a risk hedger, but an investment vehicle, as well. As a serious investor, information such as the stablecoin with the best investment rate will come in handy. 

Well, similar to any other investment such as stocks, the goal is to get the most profit, and if security comes along with it, even better.

USD Coin (USDC) and Tether (USDT) are some of the most popular in the stablecoin market, and it makes sense to shift your focus on them.

That said, which of  the two market leaders has better ROI?

It is common practice to deposit fiat dollars in a bank to earn interest or loan them out for better earnings. The same is applicable with stablecoins, as well, and there is nothing wrong with it. 

Investing in Stablecoins: What You Need to Know

USDT or Tether has been making headlines and attracting attention for both good and wrong reasons. Some people have even gone further to brand tether as a scam, but that is not entirely the case. 

Tether may be a bit off with its ethics and may have a patchy past, but it has some good points. It is tethered to the US dollar and can give you some stability in a volatile investment market. 

By market capitalization, USDT is the third largest, even though it has been on a minting spree, raising eyebrows in the process. 

USDT and USDC are the most popular stablecoins with a USD 1:1 ratio that you can use to trade in exchanges. This has its benefits.

Typically, you can get into the crypto market very quickly and at the right time, which gives you leverage. There is no hassle of converting fiat into crypto and vice versa, and this allows you to short the markets whenever you feel that something is not heading in the right direction.

For example, if you think that BTC is heading for the downward spiral, you can quickly trade your bitcoins into USDT and wait for the market to turn up.

USDT and USDC are very useful for trading. In fact, many businesses are now using USDT for cheap and more straightforward USD trading. 

Stablecoin Staking

This is a very new trend in the investment space, and it is just picking up. Well, there are few stablecoin staking offerings on the market right now. But despite their low showing, their guaranteed interest and zero volatility indicate that they have a bright future.

  • Staked.US: Staked.US is one of the most popular staking platforms with over 20 PoS coins. The USDC has a yield of around 1.1% on this platform.
  • Tidex: With a USDT yield of 12%, Tidex may be your best bet yet for good stablecoin staking profits. Neutrino (USDN), backed by WAVES, is created using tether and guarantees daily leasing rewards for Tidex stakes. 
  • Coinbase: You are better off staking USDC on coinbase. Through USDC Rewards, you will earn a USDC yield of 1.25% by just holding USDC in your wallet. 

Coinbase does not manage or lend your USD Coins. They stay safely in your account. You also get to see your investments grow in real-time.

Crypto Loan Company

If you are not so much into smart contracts as a way of giving crypto loans for profit, you still have the option of using a proper crypto loan company. Loaning using a loan company comes second after staking in terms of yields. 

Nonetheless, this method is not very transparent. There is no way of determining if a loan is over-collateralized, and the company could run away with your money. 

However, there is some comfort in knowing that the leading platforms are well established, and the real risk is very low. 

  • Nexo: Boasting more than 550,000 users, this platform claims to be the largest crypto lender. Nexo gives a daily interest of 8.00% for both USDT and USDC. 
  • Hodlnaut: the platform, founded by two Singaporean bitcoin maximalists, lends to institutions in need of hedging and market-marking assets. The company does not use over-collateralization. They can take legal action on defaulters. The yield for USDT and USDC is 8.3%, payable every end month. 
  • Celsius: the company shares most of its revenue with customers. You don’t need a minimum deposit, and you can choose to earn higher interests with CEL pay outs. CEL is the platform’s tokens. The yield of 8.05% for USDT and USDC is paid weekly. 

Blockchain Lending

Even though carried out on smart contracts, Blockchain lending is more transparent than crypto company loan lending. Similar to any other dApp, you can always check how much is locked in the contract.

Unfortunately, DeFi decentralized lending is not beginner-friendly. And to add to this shortcoming, the method has low rates for investors.

The primary DeFi borrowers are traders looking for the cheapest credit to enlarge their operations. But despite the low margins, DeFi lending collateral is well over the 100% mark. In case of a default, it is sold to compensate for the losses.

  • Compound. Finance: This is the best known DeFi app, and you can start lending instantly on the platform app section. Basically, the yield is 0.75% for USDT and 1.04% for USDC. 
  • DDEX: the decentralized margin exchange disburses all the loans to the margin traders. The application is easy to use, and connecting to MetaMask is direct. If you have some experience with crypto, lending at DDEX feels natural.

The USDT yield is much better at 3.92% than USDC at 1.20%. 

  • Aave: the recently Open Zeppelin-audited platform places a lot of weight on security, and its rates are attractive. On the downside, the website is not easy to navigate, especially for the novices, because of its focus on code and protocol.

Aave yield is 3.16% for the USDT and 3.56% for the USDC. 

When it comes to blockchain lending, USDC has better yields than USDT, and that makes your choice much easier. Of course, several other platforms may give you a better yield on USDT, but they are few and far between. The USD Coin is the DeFi industry’s choice, and you can get favorable rates with the stablecoin.

Final Thoughts 

Every investor’s main objective is to make several wins on their investments and laugh all the way to the bank. With the growing blockchain technology and market, investment in stablecoins has emerged as one of the most viable, no doubt about that, given the yields.

The uncertainty and recession in the world currently is another factor turning the focus of everyone to blockchain stablecoin investments such as lending and staking.

But the real question is, which is a better stablecoin investment? Is it USDC or USDT?

Inarguably, USDT staking has a mouth-watering rate of 12% by Tidex exchange, and therefore the clear winner. You can earn interest, and at the same time, hedge your currency risks, something that was not possible before. Given such attractive prospects, it is only a matter of time before the inevitable scramble to stake on the stablecoins for a share of the easy profits.

For Tidex and other exchanges, the future is bright, and it is possible that they are going to add other staking products with irresistible yields. Still pondering whether to enter the market? 


Decentralized Chat (DChat): What is it All About?

In the era of the advanced internet, messaging has become one of its most important core features. 

Anyone can communicate with anyone worldwide, instantly and at no cost, thereby enhancing interactions between individuals and businesses. Messaging applications offer speedy communication between companies and their customers, which plays a vital role in improving the customer experience.

Between individuals, chats have become tools for socialization and improved communication. Of course, some people type messages better than they do face-to-face communication.

Chat has played an essential role in globalization and multiculturalism through easier interactions between people from different backgrounds.

Unfortunately, chatting applications have become the main routes companies use to spy on users for various reasons. Your messages are not as private as you may think.

The issue of messaging privacy has worsened with the recent legislation aiming to increase liabilities for firms providing chat servers. This new EARN IT Act threatens to eliminate private messaging in the US, and secure messaging apps such as Signal may be forced to leave the US market. 

The legislation may end messaging privacy as we know it. Typically, tech companies that provide encrypted and private messaging will need to rewrite software to allow authorities special access to users’ messages. EARN IT Act seeks to force companies to create a backdoor on their end to end encryption software used for messages.

According to Electronic Frontier Foundation, the EARN IT Act would be a disaster for internet users’ security and free speech.

Privacy is your right, but the working of technology these days makes it difficult to have private conversations with anyone. However, there is a solution, and it is in the form of decentralized chat.

Introducing DChat

In the world of crypto, payments are the core feature. You can pay any business or individual instantly around the world, and at very low costs. Billions of users use crypto to pay for goods and services daily. 

So what is DChat?

DChat is a blend of messaging and crypto, which takes the best of the two worlds.

Before Unstoppable Domains, the idea of a decentralized chat only existed in theory. There is no other chat app that seamlessly integrates with a payment system and your crypto address. In a nutshell, DChat is WhatsApp and PayPal, with the advantage of enhanced privacy and security.

DChat or the Unstoppable Chat, the product of an incentive program, Mozilla’s “Fix the Internet” incubator, is based on the concept of blockchain technology. The chat employs end-to-end encryption and peer-to-peer networks to promote confidentiality. It took three months of development to create dChat. 

In contrast to applications such as Facebook messenger, you can encrypt, own and store your messages on your server when using dChat. 

The main goal of the dChat developers is to make their company the cornerstone of the decentralized web, similar to the status of Facebook in the centralized web, and the dChat is already moving it in that direction. 

Universal Chat

dChat integrates with p2p networks and your cryptocurrency wallet to give you full control over your messages. However, you need a private key from your Ethereum wallet to sign in to dChat and unlock the encrypted chats. 

The primary objective of integration with crypto wallet is to provide maximum privacy. DChat allows users to create a separate wallet to enhance their privacy. A centralized dChat server does not exist somewhere, so the government cannot force Unstoppable Domains to divulge the messages’ content.

So far, imToken and MyEtherWallet crypto wallet services currently support dChat before launching their own dChat protocol. Still, any blockchain application or wallet can develop and release features independently, such as stickers apps, games, auto-destruct features, and chat.

DChat is constructed on GunDB, a p2p storage network, to your domain name or blockchain identifier. This makes it possible to attach another protocol such as ID blockchain domain

Clearly, dChat allows a human-readable identifier to connect the text with payments for anyone to iterate on. It is now easy to send messages to organizations and friends that you interact with, which was not easy in the past because the payment details and domain name are the same.

Using your crypto address, you can keep the same chats, given that you can implement the protocol on any service or wallet. This distinguishes dChat from the other numerous chat applications with features that lock in the user. 

DChat gives you a unified inbox, available wherever your crypto address is for clarity and transparency.

Data Safety and Messaging Privacy

The main idea of DChat is secure storage and management of messages and data. Only the users can access chats and delete them if they want. 

Messaging privacy has always been an issue as companies snoop for targeted advertisements or blocks the application as part of a government surveillance program. Rather than having a company such as Facebook access your messages, dChat allows you full control over the storage and encryption of messages.

According to Unstoppable Domains, the DChat protocol is quite resilient, especially in resisting intervention. There is no way even for the company to stop you from using the application, which guarantees safety. Getting kicked out of the platform does not deny you access to messages and the account. 

All chats are encrypted by default to prevent censorship and spying by companies. Only you, as the user, can read the messages and choose what to do with them. dChat does not need to worry about anti- messaging privacy laws such as the EARN IT Act as new messages go directly to the p2p network from your device. 

Well, the only way for the cybercriminal to access the chats would only be to obtain the phone or computer where the private key is stored. dChat is beyond the end-to-end encryption of centralized systems since it does not operate with a database.

Another benefit of the decentralized chat is that it also eliminates text phishing as the individuals or businesses you interact with have the same domain name and payment address.

Furthermore, the text-to-crypto application guarantees continuity in the face of corporate and government regulation. It is the best definition of decentralization of chats, highlighting the original objective of blockchain technology. 

DChat remains unaffected even when the company shuts down or gets hacked. You can continue to chat in any other application that supports dChat, which is the best definition of decentralization. 

However, on the downside, enhanced privacy may negate anti-terrorism efforts and the capability to stop other illicit internet activities.

Final Thoughts

Apparently, privacy is one thing that is gradually taking a nosedive with such legislations as the EARN IT Act. Governments seek to sensor communication, and centralized chat applications have become their target. It is now not possible to have a private conversation with a loved one or family member.

On the other hand, companies that provide chatting applications snoop on their users’ messages for the primary objective of creating relevant advertisements. What you are discussing in some of the popular messaging apps is no longer private.

Decentralized chat is the future of messaging privacy. dChat is safe, secure, and beyond government control or censorship by any company. If you are continually worried about your messages getting into the wrong hands, it is now time to switch to decentralized chat. 


How to Perform Fundamental Analysis on Digital Assets?

The crypto markets were the superstars of 2020, and 2021 FOMO is driving investors wild with speculation. The most risk-averse, conservative, and experienced investors previously allowed emotive cynicism to dissuade them from the markets.

If they aren’t objectively analytical early in 2021, they could make costly mistakes with their actions and omissions.

If you are a novice in investment, you need to understand how the markets work. Crypto markets may be significantly different from traditional ones, but investors rely on some similar analytical methods. You need to appreciate old methods that are performing well for investors in new markets.

Money markets and securities exchanges are investment fields requiring thorough analysis. Just like in traditional finance, DeFi investors can carry out either:

  • Technical analysis.
  • Fundamental analysis.

Investors use technical analysis to project investment outcomes by studying historical financial charts. While this method is great for stock traders looking for short-term day trading, it isn’t ideal for young crypto markets.  

Fundamental analysis is better for crypto investors with a longer-term outlook. This analytical method exploits numerous tools and techniques, exhaustively studying assets to find their intrinsic value.

In this article, you will find out what causes asset prices to rise and fall. Learn how to perform fundamental analysis on digital assets if you want to beat crypto market volatility.

The Importance of an Analytical Approach

Did you know insightful traders make profits when some assets depreciate? Shorting is big in investment circles.

Markets are characterized by assets of different valuations. Some are overvalued because their intrinsic values fall short of the market prices. Some are also undervalued.

Undervalued assets are those whose intrinsic value is much greater than the market price. Investors love these assets because they buy low and wait for prices to go up.

Technical analysis tracks price patterns over time and makes pattern-based predictions. However, unlike fundamental analysis, technical analysis does not measure an asset’s intrinsic value.

Intrinsic value is a more stable, long-term indicator of price movements. It can predict the growth or decline of assets more accurately, but analysts must embrace its complex nature.

Without further ado, let’s look at some techniques of conducting fundamental analysis on digital assets.

Evaluate the Utility Value

Blockchain technologies are all about decentralized social aspects such as finance, supply-chain management, and social contracts like voting and inheritance.

Any asset, crypto or not, should solve problems, close market gaps, and have use-value that attracts customers. For example, Ethereum will continue growing because of its vast DeFi technologies. DApp users will always pay gas fees as more people embrace Ethereum-based smart contracts.

On the other hand, investors who rushed to buy Dentacoin didn’t gain in the long-term. The firm rose to a market cap of $2 billion in the short-run and plummeted to $30 million after its bubble burst.

The coin didn’t have many growth prospects because it doesn’t offer revolutionary innovations suitable for dentistry markets. If you wanted to invest in it, you’d probably wonder if dentists really need blockchain to better their care. They don’t and can do without Dentacoin.

Scrutinize Its Market Cap

Every coin is worth something, but it could be overvalued or undervalued. The market cap is the aggregate market value of a crypto company, and it can help determine the real value and growth prospects of an asset.

Interestingly, crypto firms with impressive innovations and low market caps are attractive to crypto because they prefer buying whole units. That’s why some investors prefer buying Ethers to Bitcoins, but it’s entirely psychological.

You can easily track the market caps of over 2,000 digital assets on CoinMarketCap.

Consider the Regulatory Background

It is essential to understand if the company and asset in which you are investing are based on legal, moral operations. Crypto markets are plagued by regulatory uncertainty. However, you can always tell if certain operations are legally sound or not by interrogating existing laws.

For example, the SEC sued Ripple Labs for running an unregistered securities exchange. Ripple Labs defended itself, asserting XRP as a commodity. The matter will go to court, but Ripple Labs could be in jeopardy if it can’t justify ICO expenditure.

The lawsuit saw XRP losing more than 50% of its price on exchanges, and major trading platforms like Coinbase temporarily suspended the asset.

Fundamental analysis could have warned investors of the impending price drop, but technical analysis showed that XRP was the fastest growing digital asset at the time.

This could be the best time to invest in XRP: when prices are at the bottom. Our laws seek to regulate, not obliterate. Ripple Labs is likely to survive the onslaught, but it could have to make compromises.

Every digital asset has a regulatory backdrop, and privacy wallets are also facing a different kind of legal storm.

Check the Coin Supply

Did you know that cryptocurrencies derive their value from demand-and-supply forces? Well, you should appreciate that limited supply makes assets more valuable as demand grows.

Bitcoins limits its coin supply to 21 million, and every bitcoin is mined through Proof of Work. Demand grows every time a bitcoin gets mined, depleting the supply left up for grabs.

Why else would bitcoins rise in value? As more people hold bitcoin for longer-term benefits, FOMO intensifies among investors. Moreover, digital currency is gaining popularity because of its transparency, security, cost-effectiveness, and convenience.

Vitalik Buterin issued a statement when the supply of ETH surpassed 100 million. He suggested Ethereum cap the maximum supply of ETH to 120 million, citing the need for egalitarianism.

Interrogate Whitepaper Roadmap by Comparing It against Age and History

You can tell a lot about the growth prospects of digital assets by reading their whitepapers. These publications outline all the technical, legal, and economic nuances of a project, addressing major market gaps. A whitepaper can tell you just how viable a product is, and it should also outline the roadmap set out for growth.

If you detect growth prospects on paper, you should find out if the company meant its words or if it was just mincing them. A company’s age and history are important, and they could reveal the credibility of implementing agendas.

A company that’s been around has maintained its underlying value, making it viable for the markets. However, long age means a company had time to implement growth plans. Just how fast did it grow?

Measure Trade Volumes

Trade volumes tell just how popular an asset is compared to competitors. Stiff competition means fewer growth prospects, and an asset should have impressive trade volumes within its niche. Trade volumes are great for indicating an asset’s growth, depreciation, or stagnation.

Parting Shot

We can safely conclude that technical analysis relies on hindsight, while fundamental analysis relies on foresight. Work hard to gain critical foresight that is necessary but elusive for crypto investors.

Fundamental analysis is time-intensive, but it is worth all the effort. As we’ve explained, a single market factor, internal or external to a firm, can cause asset prices to rise or fall. It doesn’t matter if you hold all other factors constant, but market dynamics are always fluctuating variables in volatility.

Conducting diligent, objective fundamental analysis helps you to identify short-term and long-term profit-making opportunities. It is best to conduct peer-to-peer discussions when doing fundamental research on digital assets. That’s why you should share this article with peers before you start investing.

How do you do your research when investing in digital assets? Let us know in the comments section.



Are Privacy Wallets Really Private in 2021?

Privacy is a big concern in centralized and decentralized finance. Naturally, people don’t want other people viewing and analyzing their banking history and personal finance records. Banks are aware of this fact, and they only surrender people’s banking data when confronted by court orders. The same privacy is a necessity that crypto pseudo-anonymity addresses.

One of the biggest challenges facing bitcoins is the perceived criminality associated with its pseudo-anonymous nature. It’s pretty easy for entities to track the entire transaction history of cryptocurrency users.

Pseudo-anonymity shouldn’t necessarily be associated with criminality. Even though Bitcoin doesn’t completely hide your identity by default, it’s opt-in, full-anonymity features are morally sound. Cash can also be completely anonymous, and the illegal use of currencies, crypto or fiat, is an indictment to the users, not the currencies.

Some of the opt-in identity-masking features in the crypto ecosystem offers privacy wallets and exchange wallets. Privacy wallets are software installed on web services, mobile phones, and customized hardware. They are permissionless, and users have exclusive access to their private keys.

Before the December 2020 Financial Crimes Enforcement Network, most popular privacy wallets were really private. The legal establishment isn’t all too comfortable with privacy wallets, and it’s subjecting them to these new regulations.

In this article, we discuss the challenges facing cryptocurrency users who try to conceal their transaction histories. On robust, globally-dispersed, public ledgers, are privacy wallets really private in 2021?

How is Blockchain Transparency Bad for Privacy?

Would you print out all of your financial records and publish them on the internet for anyone and everyone to see? Well, you’d regret it later, even if you have no shame or need for any privacy.

The friend who’s repaying your debt wouldn’t want people to know you helped post their bail. Your friends would start wondering why their spouses send you money all the time. That utility company that overcharges you would get negative PR because analysts are always scouring the internet for such data. Worst of all, your mom would be embarrassed because she tells people you work at some fancy law firm, but she’s lying and supports you with her life savings.

Your records should be kept private because exposing them reveals private data about people who transact with you. Revealing your identity on blockchain technology surmounts to publishing all of your banking histories on the most popular publications in the world.

At this point, blockchain transparency seems like a double-edged sword, right? Well, privacy coins preserve transparency while masking your identity. People can see the deals, but they don’t need to know who was behind them.

The Advantages of Privacy Wallets

Every blockchain user has an address, and blockchain addresses are the sole user-identification sources of data. You must reveal your public keys to the users with whom you are transacting for authentication of transactions, but public keys are pseudo-anonymous. 

Privacy wallets conceal your identity by mixing up your bitcoin addresses with every transaction. These wallets allow you to own and transact cryptocurrencies without requiring any identification details like:

  • Name.
  • Email address.
  • Phone numbers.
  • Zip code.
  • ID verification.

They are also non-custodial, which means you have exclusive access to your private keys. You can engage in permissionless, peer-to-peer transactions, and these wallets further enhance your privacy via premium features.

These wallets conceal your bitcoin address by giving you multiple wallets with many unique bitcoin addresses. Therefore, you can randomize your spending by sending and receiving digital currencies via separate addresses generated by your privacy wallets.

Another way you could be identified is via your IP address. If you are always using the same gadget browser that you use for Facebook and Twitter, your identity can be revealed in no time. Privacy wallets come preinstalled with VPNs and Tor browsers to mask your IP address every time you are transacting.

Reliable privacy wallets also convert cryptocurrencies into privacy coins. Features such as True Random Number Generators secure your signatures. Some even feature controversial coin-laundering services, making it impossible to track how bitcoins are spent and the relationship between coin users.

Implications of the Proposed Financial Crimes Enforcement Network on Privacy Wallets

These regulations are already infamously referred to as know-your-customer requirements, and they outrightly encroach on and impede user-privacy. These proposed laws demand privacy wallets to do the exact opposite of what they promise.

For instance, decentralized exchanges will be required to take your personal information whenever your transactions hit $10,000 in a day. The laws prescriptively require exchanges to store that data for authorities to retrieve upon demand.

It gets worse. Users must tie their identities to their private wallets whenever sending more than $3,000 in a single transaction. Worst of all, you can’t transact with other private wallet owners without explaining personal details to your exchange service.

The Fundamental Flow with Ignorant Regulations

The SEC is entangled in civil lawsuits with crypto exchanges for categorizing them as securities exchanges instead of commodities exchanges. Regulators continued demonstrating their ignorance of user-protection by proposing Financial Crimes Enforcement Network to infringe on privacy wallets.

Blockchain technology can be useful, but proposed regulations transform the tech into a dreadful web of embarrassment. These laws would diminish anonymity and discourage the ownership of private wallets.

Cryptocurrencies record transactions publicly, and revealing user identities would infringe on privacy protections over lifetime transaction histories. The more would kill cryptocurrency adoption and curtail the privacy rights of the millions of digital coin users.

Parting Shot

Will privacy wallets be really private in 2021? Well, if proposed laws are anything to go by, these wallets will lose all the privacy they offer. However, it’s improbable that the proposals will be adopted into law as they are. Major exchanges like Coinbase are appealing for more time to call for reviews.

If regulators are adamant, the matter may end up in court. Civilian litigation over the matter can help streamline glaring privacy issues while addressing national security concerns.

In the meanwhile, it is too early to tell. We can contribute to the unfolding debates and voice our opinions. Feel free to comment your thoughts on these proposed know-your-customer policies in the comments section. 



Top 5 Crypto Loan Services with Lowest Interests

Cryptocurrency lending is sizing up traditional finance despite being around for only a few years. The lengthy verification procedures of the traditional financial system and the competitive interest rates offered by the new option have contributed to the industry’s growth. The total value of crypto assets locked in lending is currently $11.02 billion, up from $588.508 million, one year ago. 

Crypto lending is just as straightforward as is the case in the traditional system. Crypto holders present their virtual assets as collateral to acquire loans, which are paid out either in fiat or stablecoin. The alternative allows people to separate an immediate financial need from long-term crypto investment and evade their crypto funds’ taxable sale.

Cryptocurrency lending platforms operate as brokers between lenders and borrowers. They give users a chance to put their crypto as collateral and borrow fiat at a ratio. With the emergence of decentralized finance (DeFi), it is possible to lend out cryptocurrency to others in an extremely low-trust manner.

The interest offered on crypto loans is always changing. Generally, DeFi platforms offer a higher annual percentage rate (APR) across the board. While banks are recording adverse interest rates, crypto lenders are making money work for them. However, the industry is still in its infancy stage. 

Understanding Crypto Loans 

Understanding the core of crypto lending is quite simple if you are a finance enthusiast. Borrowers use their crypto assets as collateral to obtain different loans. At the same time, lenders provide the funds required for the loan at an agreed interest rate. 

Crypto lending emerged as an alternative for HODLers to increase their assets’ productivity. With crypto lending, the old rules of assets no longer apply. 

By using blockchain in this economic system, the new rules are shaped by smart contracts and algorithms to ensure the transactions remain autonomous and decentralized. However, the idea of crypto lending still seems too new, too risky, and too good to be true for many. You must gather all the information you need to understand crypto loans better.  

Common Cryptocurrencies to Use as Collateral

Stablecoins are the most profitable option to supply as capital. Cryptos like Bitcoin and Ethereum have a variety of benefits. The two open up their use to anyone around the globe. 

Bitcoin (BTC)

Bitcoin is advancing to the DeFi sector, primarily in borrowing and building off the liquid nature of Ethereum. Atomic loans are solutions that allow users to post BTC as collateral and receive stablecoins like USDC or DAI in return.

While we’ve also seen several token wrappers emerge (tBTC, wBTC, pBTC, etc.), it’s evident that most people want to capitalize on the vast market size Bitcoin provides as the king coin. Several users are mainly borrowing against assets with high market caps and liquid capital pools. 

Ether (ETH)

Ether enforces Ethereum and comes in handy when paying for transactions. The liquid nature of ETH has led to the vast majority of loans being dominated by ETH as collateral.

It is supported by almost every borrowing platform and has quickly emerged as the leading asset to supply as collateral for a cryptocurrency-based loan despite being volatile.

Top Lending and Borrowing Platforms with The Lowest APR

Crypto lending has been steadily gaining popularity over the last few years. As such, there are lots of options available for those interested in using their crypto for loans. Naturally, different loan platforms offer additional benefits. 

If you’re looking to borrow, a lower interest rate is inherently better. Here is a list of crypto lending platforms with the best rates;

1. Crypterium

Crypterium, a rising fintech star looking to provide seamless access to everyone’s financial services, is crucial. Already, it has one of the best crypto payment solutions in the landscape. It also has excellent crypto card and wallet services. Once a user signs into the Crypterium App, they can request a loan for up to 50% of their crypto collateral using bitcoin and Ethereum, which are popular collateral assets. 

Recently, Crypterium announced the introduction of its crypto loan services with a 0% APR. The famous platform intends to eliminate financial hurdles and provide its users with competitive rates. They are doing this by providing flexible repayment term plans and continuing its mission to compete in the financial sector. Adding better features to the Crypterium app is an ongoing process.

Further, Crypterium’s loan service is insured to the tune of $100 million in custodial assets. Steven Parker, CEO of Crypterium, stated that compliance helps the startup to collaborate with more established financial institutions and provide improved products. You can borrow on the platform as low as $50, while the maximum is $5,000.

2. dYdX

dYdX is a powerful open trading platform that currently supports Lending, Borrowing, Margin trading. The platform has the best borrowing rate for ether at 0.44% per annum. Lending on dYdX is also a relatively low risk and passive way of earning interest on your crypto assets. Once you have deposited crypto into your dYdX account, you can make interest every second without having to do any maintenance or worry about who you are lending to. 

However, the decentralized exchange’s interest rates keep changing based on the supply and demand of loans and deposits of the particular crypto-asset. All your holdings on dYdX are managed and stored on the blockchain using smart contracts, thus eliminating intermediary or third parties involved. 

dYdX is available for everyone and does not require registration of an account or trust from a centralized party with possession of their assets.

3. Celsius Network

Launched in 2017, Celsius Network has become one of the leading players in the crypto lending landscape. Recently the platform announced the reduction of its minimum loan amount to $500. Celsius is now one of the most accessible crypto-lenders in the space. 

Celsius has competitive interest rates buoyed by distributing a large chunk of its revenue among users. Hence, its interest rates start at 1% APR, depending on the LTV and the loan duration.

Celsius allows users to borrow 25%, 33%, or 50% of their collateral. The company lowered its loan minimum to $1,000 at the beginning of 2020. Celsius allows users to take loans without proof of income or credit check, giving them the security of cash-in-hand without selling their digital assets. 

Celsius offers various customizable dollar loan options enabling customers to borrow against any of the 40+ cryptocurrencies supported in the Celsius wallet, including BTC, ETH, XRP, USDC, and the company’s native CEL token.

4. Nuo Network

Based in India, Nuo Network is a decentralized crypto lending protocol with a loan structure that does not require users to give digital assets ownership to the lender. 

Additionally, Nuo leverages meta transactions, allowing users to access the network without ever paying transaction fees quickly. It locks collateral in smart contracts and instantly transfers funds to users without imposing KYC checks. 

Nuo has serviced above $39 million worth of loans, and it offers some of the lowest interest rates. You can get as low as 2.3% APR when borrowing USDC with any of the platform’s supported coins. Nuo allows users to over-collateralize their loans. Still, the interest rates tend to fluctuate intermittently.

5. Compound Finance

Compound Finance is also a decentralized exchange that offers a borrowing rate of 3.06%. Rates fluctuate based on supply and demand. The collateral factor for ETH is 75. Users can also deposit one crypto-asset and request a loan of other digital tokens. 

Compound Finance lending protocol enables users to borrow popular cryptocurrencies like Ether, Dai, and Tether. Compound Finance uses smart contracts that automate the storage and management of the capital getting to the platform. 

The Future of Crypto Loans 

Cryptocurrencies such as Bitcoin and Ether continue to gain popularity as enduring and valuable financial assets. During this pandemic period, wrought with corporate corruption, a non-inflationary digital currency that’s not governed by corporations or individuals sounds better. For this reason, we believe crypto loans have the potential to take over the loan industry.

Which of these platforms can’t you wait to try out for your crypto loans? Let us know in the comments section below.


Top 5 Biggest Mistakes in Crypto Technical Analysis 

Trading in cryptos can prove to be tricky. Besides having so many competing assets – 7800 by CoinMarketCap’s count in early December 2020 – you have to contend with by-the-minute movements. Faced with these factors, you need tools to help you in tracking market sentiments.

Today, any crypto trader has several tools they’d use in mapping market trends. One of these is Technical Analysis (TA). But it’s one thing to have an analysis tool and another to use it gainfully.

Adopting profitable TA strategies is a craft perfected over time. As such, it’s usual for newbies to encounter challenges hence err in their usage. 

In this article, we highlight five of the biggest mistakes that beginners make in crypto TA. Sure, the list doesn’t include all the mistakes you’re likely to make as a rookie, but it provides an excellent headstart for pinpointing areas where you could go wrong. 

Let’s dive right into it, shall we? 

1. Reliance on Low Time Frames

Proper technical analysis relies on reliable data. Consequently, traders need enough data for accurate predictions. This entails tracking a coin’s performance for weeks or even months.

Tunnelling the Vision

Most first-timers’ undoing is restricting their analysis to a day or even less. That is to say, they tunnel their vision. In reality, they ought to be using more extended time frames as these provide reliable data.

Employing longer timeframes makes it easy to discern long-term trends, crucial swing points, levels and other vital indicators.

On the contrary, using shorter time frames obscures the bigger picture. Therefore, traders falling into this trap miss not only the trends and pivots but a whole lot more.

Effects of Time Frame on Price Action

Going big helps you get an idea of the digital asset’s price history and present trend. It is worth remembering that price action is more responsive to the long term rather than short term trends.

Should indicators be your thing, you’ll realise that higher time frames give strong signals.  For instance, a 1 day MA Death cross is a more robust pointer of change compared a 1 hour MA Death Cross.

Again, chart patterns drawn from higher time frames are more reliable and point to more significant hence richer moves.

Go Big to Go Small

Emphasis should be on going out big. From there, one can reduce the time frame to accommodate their entry or other short term outcomes. 

2. Taking the Support and Resistance Lines as Hard Set Points

Support and resistance zones are just but guidelines of where trading takes place. It would be best if you didn’t take them for fixed points. 

When charting support and resistance lines, it is therefore helpful to view them as general trading areas. It’s unlikely that you’ll have the same chart as everyone else. Further, it’s inconceivable that all traders will be trading with exact precision.

A trader that treats their lines as hard set zones opens themselves to the exploitation of whales or market makers. What this means is that they’ll cause the price to dip marginally below the support or above resistance. In turn, this will trigger their stop loss, pushing the price back inside the range after shaking them from their positions. The end is unprofitable. 

To sum it up, be strict when drawing lines but adaptable when interacting with the price. Additionally, using higher time frame charts helps to filter the noise resulting from the price interaction with your lines.

3. Seeking Signals

Unbiased TA will always indicate technical setups open for the taking, which is not the case when emotions get the better of the trader. Objective TA eliminates the need to manipulate lines to suit one’s intentions; they don’t have to force setups they deem favourable. 

No, Don’t Follow Your Heart!

Unfortunately, emotions do get the better of some novices. They open up a chart on crypto assets they like convinced that there are opportunities they’ve not identified yet. It’s there only they can’t see it…They tend to follow their hearts rather than fact in deciding trades; always ending in disastrous outcomes.

Truth is you needn’t feel pressured to trade! Refraining from trading is in itself trading too. When starting out, you’ll indeed miss several opportunities, but this improves with time.

In Technical Analysis, Patience is Key

Just because you’re convinced that there’s an opportunity for the taking, doesn’t mean that it does exist. You’d rather miss out on the chance to make money than force a trade from which you lose money.

Bottom line is if you’re craving for a trade, you’ll find a signal prompting you to trade regardless of there being one or not. It’s better to exercise patience and only go in for situations whose signals you can bank on. Walk on if there’s no clear cut opportunity.

4. Misapplication of Indicators

Another common error is the wrong application of indicators. Most beginners resort to them to cover their inability to use price action for charting and trading.

It is crucial to muster charting without indicators first. One can introduce indicators to gain confidence or get an idea of possible price behavior when it interacts with their lines. 

Underutilisation of Indicators 

One way in which novices misuse indicators is underutilizing them. Take RSI, for instance. Looking at most crypto TA on social media, you’d think that their only application is in analysing oversold pointing up/overbought pointing down setups.

However, you can use RSI in determining 70/30 entry/exit signals, placing midpoint value crosses, and establishing divergences. Moreover, it is handy in discerning failure swings and mapping trendlines, among others. Applying it only for one cause is a waste. 

Single Indicator Dependence

Another misapplication is the reliance on a single indicator. Using one indicator is often inadequate. To avoid losses, you need at least one other indicator to confirm signals generated by the one you’re using.

Indicator Overkill

On the flip side, there’s indicator overkill. Too many indicators complicate your charts leading to analysis paralysis. As much as one indicator is inadequate, an excess of them leads to confusion.

Misaligning Indicators to Trends

Additionally, rookies fail to align indicators with market trends. Whereas some work best in trending markets others are fit for range-bound situations.

You’re courting disaster when using a trend following indicator in a volatile market. Similarly, indicators meant for trading in directionless markets often return a higher volume of overbought or oversold signals. Depending on them in that situation is inviting calamity.

5. Adopting a Rigid Trading Approach

Nothing is as fulfilling to a rookie as a TA strategy that’s worked bearing them profit. Funding “the one” strategy can be exhilarating. However, that shouldn’t inhibit them from trying out other methods that could turn out profitable too.

Varying TA Strategies Helps You Find Your  “Right Mix”

Once you’ve got the hang of basic trading and the accurate mapping of support and resistance, it is good to explore different TA styles. This experimentation with various strategies helps you find your “right mix.”

For someone sold to Ichimoku Cloud and chart patterns, you might be surprised that using levels and swing highs/lows could be equally fulfilling. Knowing how to use all these strategies helps you plot their convergence points. Additionally, you can match the strategy to see how they stack up against each other.

Looking at Trades From “Borrowed Eyes”

Furthermore, experimenting with different strategies broadens your perspective. It enables you to look at trades “from the eyes” of other traders. This way, you increase your understanding of what they’re looking at and for in a transaction.

Final Thoughts

Crypto trading requires tact. The sheer volume of transactions makes the use of market analysis tools a necessity. Among the popular tools available to any trader are Technical Analysis. Their proper usage puts anyone on the inside track to profitability. 

Nevertheless, the converse is true too. It’s imperative, therefore that one develops their mastery if they’re to reap the rewards. 

This article has looked at five major crypto TA mistakes that beginners make. It has also given insights on how to best avoid them. Utilizing this information will help every other greenhorn avoid pitfalls that may make their foray into crypto regrettable.

So, which of these pitfalls did you fall for as a novice crypto trader? Let us know in the comments below!


Top 5 Tools to Market Your DeFi Project

When bitcoins first broke into the finance segment, the world associated pseudo-anonymity with criminal activities. The negative perception caused initial distrust from governments, and major advertising platforms like Facebook and Google Adwords banned the advertising of cryptocurrencies.

Marketing DeFi projects on Facebook’s ad manager or Google Adwords is out of the picture, as these two domineering advertising platforms distance themselves from blockchain assets. In this Mega Big Data era where digital marketing is superlative, innovators face a stiff bottleneck launching and growing their projects.

Interestingly, Facebook and Google allow you to market organically via social media posting and fan engagement. Google also empowers you in gaining significant visibility via high-quality content publishing and SEO.

However, the digital space is bigger than paid-advertising platforms. DeFi startups must leverage every marketing tool available to them, and the insightful application of relevant market data is paramount.

In this article, let’s take marketing tools to mean techniques and SaaS products creating positive brand awareness. We are looking at those that help in coordinating and organizing outreach efforts. The following are the top five tools for marketing your DeFi project.  

WordPress for Blogging

WordPress is one of the most popular publishing SAAS tools in the marketing world. This content management system allows you to create landing pages, educational posts, and lead-capture forms.

The world’s population is vastly ignorant of DeFi products and the benefits of the digital ecosystem. Such ignorance remains the biggest challenge to DeFi startups, and mass education on DeFi could be the secret to making your project successful.

Websites are useful for making educational and commercial advances in popularizing crypto products. WordPress is conducive because it is open-source, free, and offers empowering publishing features. It eliminates the need for writing any code, and savvy web designers can go into development without incurring extra costs.

By taking advantage of WordPress, you can blog about your DeFi project and highlights its use-case benefits to potential consumers and investors. You can also integrate it with eCommerce tools to sell your products onsite.

YouTube for Visual Influence

YouTube yields the same dynamic effect that storefront displays have on shoppers. It can lead to unplanned consumption or cause unintentional audiences to plan for future purchases. This marketing tool is organic, and you shouldn’t couple it with paid Google Ads, lest you lose your entire Google account.

Post engaging and authoritative videos on your niched-down channel. You can even get popular influencers with a grip on your target market to post for you on their established channels.

This tool, compounded with relevant influencers, delivers visual clarity and trust. YouTube vlogging immerses potential clients into the details of your DeFi project, and reviews offer the most effective results. Therefore, targets understand your offers, helping to reduce resistance caused by suspicion and ignorance.

Partner with popular crypto YouTube vloggers to earn trust and capture relevant attention for your DeFi project.

MailChimp for Email Marketing

This email marketing tool is popular among B2B establishments, and it presents significant marketing benefits. MailChimp serves over 12 million customers, which makes its industry-specific access to data vast.

You can gradually collect and segment an email list and send over 12,000 monthly emails for free. You only need to pay if you grow your prospects list to more than 2,000 subscribers.

You don’t have much to lose relying on MailChimp, which grows your project for free until you can afford to pay. Take one step at a time, and develop a community of enthusiastic subscribers.

Facebook-Telegram Funnels for Group Mobilization

Facebook and Telegram are reliable for engaging savvy and novice leads. Facebook offers a relevant audience, and you can find ways to direct them to Telegram groups.

Community building helps collect like minds in groups for coordinated conversion. Creating Facebook groups for crypto discussions, and you should create social media groups for your DeFi project.

The great thing about Facebook-Telegram funnels is that group members generate their content via casual debates. You don’t have to write lots of direct-response; savvy members often answer questions from novice ones.

Group members also invite friends and family who are likely to enjoy particular discussions. Therefore, you can amass a cult-like following that’s likely to market your DeFi project with impressive firepower.

Find a way to attract significant crypto influencers to your groups.

Etherscan for Blockchain Browsing

Facebook and Google are robust ad platforms because of their vast audiences. However, their ad traffic is out of bounds for you because they are against blockchain marketing.

Etherscan is a few of many blockchain-based browsing platforms with quality traffic. Most users appreciate crypto security and DeFi benefits. Therefore, you stand better chances at generating quality leads on this platform than regular browsers.

Posting banner campaigns on Etherscan is straightforward, and you can adjust audience preferences to suit regions, timeframes. It also empowers DeFi startups with detailed, fraud-resistant ad analytics, and you can trust the reported marketing results.

Etherscan is fraud-resistant because it validates transactions via blockchain technology. It exists as an independent entity, and its transactions rely on smart contracts for execution.

Best of all, this marketing tool is free to use, and it doesn’t require users to register for access to premium features.

Parting Shot

DeFi projects are cropping up every day, but the market is still pretty ignorant about DeFi benefits. The crypto space faces uncertainty and negative public perception, which is fast eroding. People are increasingly embracing DeFi projects that they understand, and the trend is making it easier to launch innovative solutions.

The best way to market any DeFi project is to support the mass education of folks. These technologies offer valuable utility, and people just need to know the benefits. Therefore, make sure the target audience gets educated through your marketing efforts.

You have a wide range of tools at your disposal for marketing your DeFi project. Don’t try bypassing rules on Google or Facebook because you don’t want to lose such vast prospecting networks. Take advantage of the tools we’ve just listed, and combine them for the most effective results.

Let us know about your previous experiences marketing your DeFi projects, and share this article with friends looking to grow their DeFi startups.



The Bitcoin Bubble: When Will It Ultimately Burst?

In finance, bubbles refer to asset-value. A bubble can be of an asset or an economy, and it’s a cyclic situation through which the market value of assets rapidly increases. Bubbles are unsustainable because commodity prices hike without improving the utilitarian value of consumer products.

Bitcoin’s value grew steadily over its first nine years of existence, despite some major day-trading volatility. It hit an all-time peak in 2017 after an aggressive, bullish streak. Throughout the last half of 2016 and the first half of 2017, investors were in a frenzy to leverage its speculative growth.

The 2017 bubble burst, but it did not grind Bitcoin’s value to zero. The crypto asset depreciated by about 80% in value. It went back up to about 88% of the 2017 peak value after three years.

Investors made fortunes by staking in Bitcoins, but some were unfortunate to buy in during bearish streaks like the 2017 Bitcoin crash. One thing that all crypto investors agree on is that the market is extremely volatile.

In 2020, a similar Bitcoin streak manifested, causing investors to debate if the market was one big bubble waiting to burst. In January, the digital currency cost $7,200, but the value ballooned to $32,700 by the end of December. However, the market conditions of 2017 and 2020 were very different.

In this article, we are establishing whether Bitcoin is an overhyped asset. Is its value inflated, or is it worth all the fuss? We are going to study interesting bits of its financial history. Ultimately, we’ll establish if it’s a safe investing haven or if you are about to lose money on an unsustainable market.

Bitcoin as the Original Cryptocurrency

On the 31st of October 2008, Satoshi Nakamoto unveiled the Bitcoin whitepaper, presenting peer-to-peer cash systems as the ultimate solution to untrustworthy central banks. At the time, the economy was on its knees due to a real-estate bubble that burst, unearthing banking malpractices.

The United States initiated a global financial crisis due to wanting, centralized fiscal policies and caused populations to interrogate financial services with extra scrutiny and discontent.

The 2008 financial crisis was a major reason for Bitcoin’s creation, and widespread adoption stems from a discount on the Fed’s ability to print dollars out of thin air. It channeled the trust needed and betrayed by banks and third-party financial services into a permissionless, peer-to-peer fashion.

The practical value of this blockchain software prevents its price from dropping to zero.

The First Major Bitcoin Bubble Burst

The 22nd of December 2017 saw a one-day, 23% depreciation of Bitcoin’s value and the start of an aggressively bearish trend. The sudden plunge was unprecedented, considering the bullish growth Bitcoin posted throughout the year. 

In January, the digital asset was valued at $998, and the price bulged to $20,000 by the 21st of December.

Many pundits termed the cryptocurrency as a Ponzi scheme at worst or a speculative bubble at best. Before the crash, JPMorgan Chase tipped investors of Bitcoins tripling prices. In response, the CEO, Jamie Dimon, termed the digital assets as fraudulent, worthless tulips.

Bitcoins didn’t go bust after the 2017 crash, like the Silk Road website or Mt. Gox. It stabilized after rampant volatility and picked up a 3-year long bullish streak with some shocks. In 2020, JPMorgan Chase was actively investing in bitcoins and other cryptocurrencies.

The gradual recovery suggests some underlying utilitarian value in Bitcoin. So, why did its value slump so bad in 2017?

Well, cryptocurrencies require liquidity to foster convenient payment services. The entire crypto market relied on ICOs for liquidity, and the ICO craze caused a speculative bubble to engulf Bitcoin and other cryptos.

Fraudulent ICOs were rampant in 2017, and they caused financial regulators to crack the whip on the entire crypto community. As the SEC initiated legislative scrutiny on Bitcoin, scared investors started selling off their crypto assets.

The crash was also catapulted by Goldman Sachs, sidelining plans for a crypto trading desk. These events heightened Bitcoin’s volatility, and the blockchain was also undergoing a hard fork.

Reasons Why Bitcoin Won’t Crash Again

Investor Confidence

Bitcoin survived the 2017 crash, and many investors were adamant about training their cryptocurrencies for the long-term. In fact, the crash attracted seasoned investment experts, who rushed to buy low and are reaping big from the current bullish growth.

Regulatory Progress and Censorship Resistance

The crypto markets proved resistant to the legislative witch-hunt mounted against them. Bitcoin’s greatest threat was always government censorship, but it even survived total bans. It initially attracted users because of its censorship-resistant innovations.

In 2020, we saw regulators finding impressive middle ground with crypto communities. Investors can be confident getting into Bitcoin markets because the ecosystem is now more protective. The biggest indicator of regulatory confidence was risk-averse PayPal integrating Bitcoin payments for American users.

Covid19 Necessitated Digital Currencies

Bitcoins are limited in supply, and politicians cannot manipulate digital currencies via whimsical printing. It means that while fiat currencies keep getting diluted at mining machines, bitcoins appreciate. Digital currencies are valuable because they are pegged on demand and supply forces.

Covid19 exposed the fault of central banks printing money out of thin air to humanity. Moreover, American interest rates at banks have been minimal for years now. These issues accelerate the distrust of banks and fiat currencies.

Investors are looking to secure future relevance through digital commodities like Zoom, Amazon, Microsoft, PayPal, and Bitcoins.

Central banks are aware that cashless payments are the future, and they are developing their cryptocurrencies. While the novel CBDC assets may be considered competitors, they will affect Bitcoin’s adoption positively.

The Evolution of DeFi

DeFi propagates the peer-to-peer value exchanges, and investors can use DeFi to trade commodities, currencies, securities, and services. It relies on smart contracts, which hold monetary value within themselves for escrow purposes.

Blockchain technologies are maturing fast, and investors can now enjoy cross-chain money markets. Ethereum offers composability with numerous dApps, and innovators like developed cross-chain interoperability.

Even though Ethereum is behind most DeFi innovations, Bitcoin is a major beneficiary because investors can now trade, lend or borrow bitcoins on decentralized exchanges.

The Halving Event

Bitcoin previously had three halving events, each happening after four years. These events always precipitated bullish trends. As bitcoins continue getting depleted, mining rewards half at every halving event.

In 2012, the mining fees halved from 50BTC to 25BTC. In 2016, the fees went down from 25BTC to 12.5BTC, and in 2020, they dropped to 6.25BTC.

Every having event reduces the supply of bitcoins. On the backdrop, demand increases as the transaction costs drop significantly. The result is often an upward trend in price mobility.

Parting Shot

It’s always embarrassing to make predictions in the crypto markets. The volatility is often too much, but some trends are not going away. While we can forgive traditional financial experts like Jamie Dimon for castigating Bitcoin, they were wrong about its worth.

Bitcoin is an avenue through which decentralized finance is possible. It’s secure, limited, cost-effective, and transparent. Other digital currencies may replicate its practical value, but it remains the first among many equals.

Do you still think that Bitcoin is a mere bubble waiting to bust in speculators’ faces? Well, we’d like to know your reasons, and you can make your predictions in the comments section.


Understanding Bitcoin’s Transaction Mechanisms: What Is Scriptsig All About?

In traditional finance, you can send money to a recipient via third-parties like banks, PayPal, and other various money transfer services. You provide the third-parties with your funds, the recipient’s address, and your signature verifying you agree to the transfer.

Cryptography works differently, and most blockchain networks like Bitcoin eliminate third-parties in monetary transfer via Script computer language. It allows you to send and receive cryptocurrencies in a decentralized fashion, boosting transaction speeds and security, while diminishing transfer fees.

Script authenticates transactions through public and private keys. Public keys denote the Bitcoin address to which you are sending funds, and you need your public key to receive and spend money sent to you.

So, what is ScriptSig all about? Well, we established that you sign checks or transfer forms when transferring funds to people via traditional services, right? Even in mobile transfers, your account password authenticates your approval to disburse funds.

You also need to authenticate your ID when recovering and using funds sent to you. In banks, you sign withdrawal forms, and you use passwords for mobile withdrawal services.

Bitcoins allow you to spend money sent to you via ScripSig. In this article, we shall explore a basic, on-chain, bitcoin transaction and closely examine ScriptSig. Therefore, we’ll also need to touch on a few details about ScriptPubKey.

Transaction Input and the Essence of ScriptSig

Input refers to previous transactions through which you received or sent funds. It determines how many BTCs are available for spending. Various individuals can make multiple inputs in a single transaction, and the blockchain attributes every input of a transaction to each sender. Let’s focus on a single-input transaction between two parties.

To make an input, you must use ScriptSig to unlock funds that you want to spend. That is why we consider ScriptSig to be the first half of the Bitcoin transaction Script and ScriptPubKey as the second.

Suppose you want to send 5BTC to Edith. You need to have 5BTC plus the required BTC transaction fee available in your Bitcoin address, and the coins come from previous transactions. Essentially, the blockchain accounts for every coin via an immutable transaction history ledger.

The input transaction must always be greater than the output transaction because the sender pays the transaction costs. Bitcoin miners reject transactions that don’t factor in their fees. They also need you to validate that you own the bitcoins, and you can only unlock the funds via the ScriptSig.

Locking Funds for Transaction Output with ScriptPubKey

So, you need to specify you are sending 5BTCs to Edith’s Bitcoin address. You must also lock the funds in the decentralized atmosphere so that only Edith can unlock and spend the 5BTCs. Therefore, Script requires your digital signature to lock the funds for transfer to Edith.

You will first need to unlock the funds with your Bitcoin private keys, and then lock it for Edith to unlock. Use Edith’s public key to lock the money so that only she can unlock them.

When miners approve the transaction output, anyone on the blockchain can see that you (your public key) sent 5BTC to Edith. However, only Edith can access the funds with her private keys.

Therefore, a transaction output entails instructions for sending out bitcoins, and it depends on the second half of the Bitcoin script. The ScriptPubKey pairs the recipient’s public key (Bitcoin address) with the private keys needed for unlocking the funds.

The blockchain then executes the SHA 256 hashing algorithm.

Understanding Bitcoin Script

Bitcoin’s Script cryptography secures decentralized value transfer through the transparent use of ScriptSig/ScriptPubKey pairs.

Bitcoin addresses are just hashes, and the hashing algorithm follows a fourth-like scripting system. When the recipient is redeeming the coins, she uses both the public key and private key (digital signature.)

Her public key first verifies the transaction only when the Bitcoin address hashes with the ScriptPubKey.

Basically, the SHA 256 hashing algorithm authenticates the receiver’s Bitcoin address by ensuring the funding ScriptPubKey hashes with the script used for redeeming the coins sent.

Thereafter, Edith will need to sign the output transaction to unlock the 5BTC that you sent her. The ScriptSig unlocks these funds after the blockchain verifies her Bitcoin address. Therefore, ScriptSig refers to scripts that are sufficient to unlock bitcoins designated for a particular Bitcoin address.

The blockchain is transparent, and everyone can see you sent money to a particular recipients’ public key, and some people may successfully replicate the address to steal the funds. 

However, it becomes almost impossible to unlock the funds without the authentic recipient’s private keys. No matter how many ScripPubKeys hash with a funding script, only one with the ScriptSig can spend the funds.

The ScriptSig Blockchain Mechanism

Bitcoin output transactions are coded to be:

  • Turing incomplete: they cannot fall into endless loops. This prevents duplicate transactions.
  • Stack-based: They follow a linear structure, and data pixels are piled on each other like you would stack-based structures only allows you to access the data in order of Last-in-First-out (LIFO). This helps follow the ScriptPubKey/ScriptSig sequence required for security.

The senders of funds may not know your public key, but they must know their recipient’s Bitcoin address, which is your public key’s hash.

The Benefits of Bitcoins Scripting Sequences

  1. The blockchain reimburses any change left after sending funds and paying transaction fees.
  2. Transactions are transparent.
  3. Transactions are secure.
  4. Transactions are fast.
  5. Transactions are irreversible.

Parting Shot

Most folks fear investing in bitcoins because they don’t understand how permission-less DeFi works. Comprehending how decentralized transfer and store of value work is challenging, but understanding the simple basics of cryptography can embolden you.

These digital assets are some of the most profitable investment vehicles in 2020 and predictably, 2021. In fact, bitcoins provide one of the most convenient, global payments, and you can trade securely with a stranger on the other side of the planet. However, you need to understand this technology to embrace it.

What do you think about the Script computer language? Would you like to share some more information about ScriptSig? Engage us in the comments section to join the discussion. 



Is Tokenization the Engine of Future Economies?

The concept of tokenization has grown in popularity in the age of blockchain technology and online commerce, but it is not entirely a new concept. The 17th to 19th century British empire used tokens when fiat was in short supply.

Contemporary online payments contain advanced security protocols to protect users’ critical data according to the latest international standards. In a nutshell, this is tokenization. Payments are made without necessarily revealing the user’s data. 

But what are tokens? 

Typically, tokens are unique digital identifiers that replace information about the user’s card and transfer it in encrypted random alphanumeric form. They do not carry any practical value that can be used by cybercriminals. Only the bank servers can interpret the tokens to confirm the transaction.

Tokenization improves the transaction process’s security, and this has been the driving force behind its growing implementation. But is it the engine of future economies? 

The Chicken-and-Egg Concept

Online platforms such as Airbnb and Amazon have grown in popularity and importance in the global economy. These platforms are intermediaries or matchmakers, bringing sellers and buyers together. They create value by reducing transaction costs and search costs.

The value created by these popular platforms depends on several factors, such as the platform’s size. Inarguably, the utility derived from using the platform depends on how many users are on the platform, and only experiences accelerated growth after reaching a critical mass of users.

In the past few years, business models have focused on developing platforms that can propel business growth. Unfortunately, low platform utility experienced by first users acts as a barrier to accelerated growth. There is no incentive for potential buyers to join it if they cannot find any sellers in it and vice versa. 

This is what is referred to as the chicken-and-egg problem. Every company that wishes to establish a platform must overcome this challenge, which is a gradual and expensive endeavor to create a suitable incentive. This is where tokenization comes in. 

Thanks to Satoshi Nakamoto, the introduction of blockchain technology can change the incentives for platform participation to skirt around the chicken and egg problem.

Usually, the platform founders issue their blockchain-enabled token for different applications. The utility token is one type of token that represents the privilege of access to products and services on the platform. In the blockchain context, the utility token is simply tokenization. 

The Incentive in Tokenization

The blockchain community views utility tokens as a medium of exchange on the platform. Before the platform launch, the entity undertakes a token issue at a particular price and uses the proceeds to fund platform development. The process is much like the stock exchange, where a company issues shares to the public to obtain funding.

The issuer promotes the sale of the token in the hope of increasing its value. As the number of platform participants rises, the demand for the tokens also goes up. Eventually, the entity limits the token supply in the face of an increasing demand to raise the token’s value

There is a financial incentive for buying tokens earlier because the value presumably goes up. Therefore, tokens are not only a medium of exchange but an investment vehicle as well. The early adopters get compensation as the platform grows.

A suitable financial incentive overcomes the chicken and egg problem as potential users want to benefit from the growing platform, or simply, the ever-increasing token value. There is a direct relationship between the growing token value and the platform’s growth, and every participant wants to contribute to the growth.

Asset Tokenization 

Blockchain and decentralization are synonymous. Decentralization is one of the main wheels that have kept blockchain growing, and unlike centralized systems, it is not prone to manipulation, bureaucracy and cumbersome systems among other shortcomings.

The advent of blockchain has transformed the process of asset and business valuation as well as their funding. Not long ago, the market for serious funding through securities was only accessible to fairly big organizations. But thanks to tokenization of assets, businesses of any size can access this borrowing. 

But what is the tokenization of assets?

From the blockchain perspective, asset tokenization is the secure transfer of rights to a financial asset or property to a digital asset. The primary characteristic of the process is encrypted transactions in blocks of information that can be monitored in the blockchain network.

Tokenization is a transparent, secure and progressive method of evaluating and managing any asset of value. Indeed, it is the future of the digital market.

The true potential of tokenization is unfolding right before our eyes, thanks to blockchain technology. Through blockchain, you can efficiently and safely tokenize businesses and a wide range of assets.

The Growth of Tokenization and Its Benefits 

Since the 2017 cryptocurrency boom, there have been various revisions of the concept of tokens as security. There is wide use of the term security token offering or STO to denote tokenized assets – rights or partial rights to other assets such as real estate or precious metals.

  • The apparent benefit of tokenization is dividing up an asset into tokens to open up new investment opportunities. This allows small investors to participate without the associated bureaucracy. The process of tokenization simplifies the registration process for investors and lowers the financial requirement.
  • More importantly, tokenization improves the security of data. The token does not contain any personal data, so your information is safe from hackers. Tokenization also increases the speed of transactions as there is no need for intermediaries when transacting.
  • Various transaction aspects, such as ownership registration become simpler. For example, a token can be created for a piece of the prime property somewhere around the world. It is also possible to apply tokenization to time, ability and an idea. There is also no need for a lot of paperwork that currently inhibits trading. That means you don’t need asset management companies to support transactions.
  • The management of physical assets is also transforming with tokenization. Token holders can manage the assets without necessarily going through the procedure of physical transfer. Clearly, tokenization is gaining new supporters with increased democratization of the market.

Anyone can become indirect shareholders without infrastructure costs and barriers. As a result, it is now possible to enter the market with zero costs.

Expectedly, there are some legal challenges to overcome, such as applying the new technology to illiquid assets, but it is only a matter of time and patience. Everything is moving in the right direction.

Shortcomings of Tokenization

Tokenization is an exciting new way of trading in the digital space. However, some shortcomings currently stand in the path towards the transition to full universal application. 

  • For starters, global tokenization will not be realized anytime soon since there are not many software solutions to digitize assets. Most of them are prototypes, and which is not sufficient.

A clear tokenization concept is necessary to provide all participants with interaction algorithms, token management, withdrawing, registering and exchanging assets. Furthermore, the simplicity of registration and unrestricted access to assets is a recipe for chaos.

  • Tokenization is not standardized, affecting integration with traditional payment processors, security, and asset management. Of course, blockchain technology was built upon decentralization, but it appears that tokenization will need government regulation to achieve standardization.
  • There is also the issue of trust. The creator of the token is not regulated, and the model only operates on authority and trust. There may not be any documentary evidence to prove the asset’s security, and you only have to rely on the honesty of the token developers. It is not legally binding.

In every aspect, tokenization has the same characteristics as a bubble in the absence of a regulator to minimize frauds. Typically, the traders of secured tokens are anonymous on the network, and this poses serious challenges.

  • Also, the concept of smart contracts is not adapted to the traditional financial markets and the current IT infrastructure, which is a challenge. Other obstacles to tokenization include distrust among participants and the existing legal framework. 

Final Word 

Tokenization is finally here, and it is going to disrupt the asset investment market and the financial industry at large. If you are not ready, you risk being left behind, and that is not ideal for anyone.

But what benefits does tokenization have to create such an excitement?

Well, the main benefits of tokenization are similar to those of blockchain technology, and they include decentralization, security and transparency. 

No doubt, the current digital market is embracing tokenization with real assets, and this is the best thing that could happen to the financial industry, and of course, investors. And similar to wildfire, tokenization is spreading fast to various industries as its advantages become apparent. The market is ripe for tokenization. 

But as with any other technology, there are some hurdles to jump before going mainstream. For example, there is a need to implement algorithms to support participant interactions in a decentralized system, and a mechanism for the distribution and issuing of tokens is imperative. Also, there are legal and legislative mechanisms, issues and interactions with tax systems that need to be solved. 

Slowly but surely, we are heading in the right direction, but admittedly, it will be some time, maybe decades, before tokenization can become globally accepted. 


3 Compelling Reasons Why Tether is Just Another Fiat

It comes as a surprise to most people that Tether is the most traded cryptocurrency ahead of bitcoin and ether, given that bitcoin is the most popular. 

Tether (USDT) is a stablecoin that was launched in 2014 and can be redeemed for $1, which makes it attractive to most traders. That means if you have 50 USDT, you can redeem it for $50.

Undoubtedly, Tether has had its fair stake of controversy as a stablecoin. Despite it all, it has managed to stay afloat and become one of the most used in its class.

Some investors predict that the stablecoin’s market capitalization is set to overtake Ethereum (ETH) and XRP. It is clear that Tether has worked hard to earn its place in the eyes of the crypto community, but it has a specific appetite for controversy at every turn.

Some of the criticisms concerned its recent actions against decentralization, one of the crypto market pillars. 

What Makes Tether so Attractive?

One of the primary reasons why Tether is so attractive is that its value is  pegged to the USD.  

The need for a currency like Tether became apparent when companies and exchanges could not handle sovereign currencies without a license. This need was aggravated by the traders who wanted easy movement between fiat and crypto.

In most cases, Tether is used as a substitute for dollars. It can easily be transferred between traders and exchanges. It is a better alternative to moving money through banks.

Tether is also easy to sell and buy, and you will find it at your favorite crypto exchange. What also makes it attractive is the fact that traders can use it to hold money on exchanges in times of instability in the market. 

An interesting use for Tether and other stablecoins is the cross-border purchase of goods and services. Many merchants and websites are increasingly accepting stablecoins.

Tether is Just Another Fiat- Here’s Why

Regardless, there are a few issues that keep most traders on edge, such as the uncertainty on whether it’s 100% backed by the US dollar or not. Most people argue that Tether is just another fiat, and the following are the reasons why.

It Works Against Decentralization

It is out in the open that Tether is backed by fiat currency reserves, which goes against decentralization. You can no longer compare the digital currency to MakerDAO, which requires crypto-collateral instead of fiat reserves.

More than 40 stablecoins on the market are backed by sovereign currencies or silver, gold, and special drawing rights (SDR). Interestingly, it was the popularity of Tether that inspired DAI and other stablecoins. Already, DAI by MakerDAO is making significant strides in a bid to catch up. Tether’s centralization features make it even easier for the competitors it inspired to catch up.

Tether changed its policy in 2019 towards the direction that many can describe as centralization. The policy stated that fiat reserves and equivalents were now backing the cryptocurrency. The term ‘equivalents’ is left to anyone’s guess, and that is not the definition of transparency. The same year, a lawyer statement mentioned that the fiat reserves were only 74%, bringing into question tether’s transparency.

It seems that transparency is an issue with Tether, and that is a problem. As the largest stablecoin provider, it owes it to the crypto community to be more open.

In sharp contrast, MakerDAO is decentralized and backed up by collateral. The crypto asset has sufficient backup for an increase in supply, something we are not quite sure about Tether. 

The fact that Tether can recover cash at will is something that should worry anyone. For the most part, this is all right, but you have to think about future scenarios where Tether abuses this power.

The cryptocurrency market’s primary goal is to establish a system where governments cannot control or freeze accounts at will. It seems Tether is pulling in a different direction.

Tether has Been on a Mad Rush to Increase Supply 

For a long time, printing more and more currency has been the reserve of central banks to control inflation under challenging times. However, this fiat currency strategy has never been quite useful and has brought on several problems in the end.

It is now apparent that Tether has taken the baton from the fiat currencies and is in a mad rush to print. In the past two to three years, Tether printed millions of dollars’ worth of cryptocurrency, and it does not seem like it’s going to slow down anytime soon. The Tether tokens in circulation are over $19 billion.

In January of 2018 alone, Tether took four days to print $400 million. They surpassed their own record in May last year when they printed $480 million within five days. By July last year, Tether had printed $300 million. 

Given this enormous supply of crypto-assets, investors are increasingly growing anxious that Tether may not have sufficient reserves to back it. 

The ramifications of not having enough reserves would be dire, and this would send shock waves across the cryptocurrency market.


On the other hand, printing an endless supply of tokens is the antithesis to the principle of decentralization. It is an action that can later come back to affect the future of Tether. 

Tether Operates Like a Bank

Recently, Tether blacklisted 39 Ethereum addresses worth $46 million, which it believed some were from bad actors involved in the KuCoin hack. This action was in response to a law enforcement request, which is pretty much another indicator that Tether is centralized, just like fiat.

Tether may justify this action by saying it halted the bad guys right at their tracks, and in some way, this is true. But as a serious crypto investor, you are left wondering about similar activities in the future where you are on the receiving end. 

Of course, Tether may be one of the most trusted stablecoins, but it is not entirely reassuring to know that you can wake up one day and find your crypto assets frozen.

It also seems that authorities have a say on the blacklisting and freezing of individual accounts at Tether, which is less than ideal for investors who desire freedom when trading. This is by all accounts against the primary reason why many people turned to cryptocurrency.

In all but name and the currency, Tether is a bank. Tether operates more like a bank and less of a decentralized stablecoin. 

Final Thoughts

Tether is expected to grow in market cap in the medium term, but it has many glaring shortcomings that go against the spirit of decentralization. The crypto-currency market was built on decentralization, freedom, and security, values that may apparently be lacking with Tether if its recent actions are to go by.

Blacklisting and freezing accounts belonging to a few bad actors can be forgiven, but the biggest concern is insufficient backup reserves in the face of a printing spree. 

Well, the crypto market infrastructure is still in the development stage, and competitors can always catch up and overtake Tether. That is if they do not address the glaring shortcomings. Tether’s biggest competitor is USDC, which, unlike Tether, maintains its integrity by undergoing frequent and public audits. 


Value Per User: A New Way of Quantifying Crypto Potential

It is common practice for financial analysts and investors to look for simple and informative indicators to assess particular assets before investing in them. In recent years, crypto assets have become the latest focus for a viable indicator search, and it has not been easy.

Usually, the ideal indicator should reflect the asset fundamentals position relative to the market valuation position. Achieving the two with a particular measure is not usually a walk in the park, especially with tokens and crypto coins. 

So, which is the most effective indicator for a cryptocurrency’s value? 

Price is the most straightforward measure of any crypto coin, and it is usually in U.S. dollars. While it is easy to explain stocks and other assets’ market price, bitcoin price fluctuations are a different ball game.

Some predictions and metrics try to explain the phenomenon, and they include present and future scarcity. We will discuss the scarcity of some of the most popular crypto coins to gain a better understanding of their value.

What is Value Per User?

The market cap can accurately quantify the market valuation of an asset. Unfortunately, the same does not apply to asset fundamentals since they are not easy to determine. 

One of the most simplistic and effective asset measures is the price-to-earnings ratio, which takes its annual earnings or dividends given to shareholders.

The challenge with crypto assets is that they do not bear dividends, so the price-to-earnings ratio is not applicable. A more effective approach proposed has been the network value-to-transaction ratio. But how does it work? 

The network value-to-transaction approach gauges the fundamentals of coins on the blockchain by considering the transaction volume value within the last 24 hours. The method treats the token as a medium of exchange as opposed to a store of value.

Value per user is yet another model based on the scarcity of crypto assets. This unit of measure hinges on the likely ownership of a coin founded on data for active addresses. 

The assumption behind measuring per user is that everyone within the network is interested in the coin’s success.

However, not everyone within the network can sell at the level of value per user. As such, the unit of measurement does not refer to the realized value of a coin. Value per user is a reliable indicator of the network’s value.

Normally, users can access every new blockchain’s potential and realized value with its native crypto asset. To test the value of a user model, we compare different projects and tokens to see how the measurement unit applies and whether there are visible differences.


The user base for bitcoin is pseudonymous, with more than 3 million BTC considered lost. The supply of bitcoins is 21 million, with a market capitalization of 600 billion U.S. dollars as of January 14, 2021.

According to the current estimations, there are about 30,605,330 BTC wallet users. But this figure can include individuals and businesses with more than one wallet.

Given the above figures, the value per user metric is around $19,600. You cannot use the BTC total supply in the calculations since they will be mined in the future.

The main challenge with bitcoin estimations is the uneven distribution of wealth. Well, the big exchange wallets and top wallets have an undue advantage in the distribution.


Ethereum is one of the most active in decentralized finance. The Ethereum network has 126,819,085 total unique addresses and has a market capitalization of $67,815,701,234. Using this info, you get a coin’s value per user (CVPU) of $543. 

You will notice that the CVPU is very close to the market price of around $600 as of December 2020. There are various reasons for the low CVPU.

The ETH behavior is similar to that of a utility coin as opposed to a scarce asset. Ethereum is also highly distributed and grows to depend on secondary projects that require ETH as a basis for trading or financing. 


Another way to map the value per user is by using unique crypto assets such as EOS. By October 2020, the network had 1,500,206 accounts with a market capitalization of $2,877,691,183. This gives us a value per user of $1,918. 

The EOS market price stands at $3.07, which is a long way from the value per user. 

SocialGood (S.G.)

The primary goal of SocialGood is two-pronged: democratize crypto assets and solve economic inequality. 


The platform gifts users SocialGood (S.G.) cryptocurrency to shop at major online retailers through their application.

The current S.G. market price is $3.93 as of January 15, 2021. S.G. has a total issuance limit of 210 million coins, which is ten times that of a bitcoin. SocialGood chose this number deliberately to accommodate the needs of its community.

Unlike bitcoin, SocialGood has actual numbers of its user base; over 100,000 people as of December 2020. The issuance limit is approximately $821,814,000. Based on this data, the coin’s value per user (CVPU) is $8,218. 

The number of users could increase to 1 million in the future. In such a case, the market capitalization will be roughly $8.218 billion, and the market price of S.G. would be around $39.30. 

SocialGood has a limit on its issuance, which means an increase in S.G. holders will also lead to a price increase.

What Does it All Mean?

No particular model can easily determine the value of the crypto-coin. Regardless, the network value-to-transaction ratio is one of the proposed methods that indicate some practicality when it comes to crypto assets. 

There are various challenges with valuing cryptocurrencies. For example, a potential user can select a particular coin and set its price higher than the value per user. This goes against democratic wealth distribution, where users realize much higher market prices or whales.

However, particular projects such as SocialGood have a more democratic coin distribution and wealth-sharing business model. And since S.G. coins are linked to retail activity, it is not easy to establish whales. 

The token price is highly volatile, and so they do not serve as a unit of account. The exception is stablecoins. Effective measures of the fundamentals of crypto assets should primarily incorporate functions as a medium of exchange and storage value. 

The practical use of the value per user method determines the cryptocurrency coin’s distribution level and has a clearer picture of how it works. The utility status of Ethereum highlights it not as a store of value but rather, a highly fluctuating asset.


Predicting the exact market price of a crypto asset is as difficult as it can get. Using the example of SocialGood and Ethereum, it is clear that there is a big difference in picking an asset seeking real-world application and a clear business model. 

The value per user metric can still be used to gauge the potential of the coin or token. A relatively effective method is the network value-to-transaction ratio based on Metcalfe’s Law.

According to Metcalfe’s Law, the network value is proportional to the square of the token holders. The network value-to-transaction ratio views the crypto assets as a medium of exchange instead of a store of value. It is, therefore, a better-placed measure for the highly volatile tokens or coins,


Crypto Market Trends for 2021 that You Should Exploit

2020 has been nothing but tumultuous, and most analytical fintech pundits got their predictions on crypto markets wrong. The Coronavirus caused an unprecedented, global effect that altered trends, intensifying some and creating others from scratch.

Just around March 2020, when global lockdowns became a trend, bitcoins cost about $4,000. Government-imposed economic shutdowns caused widespread volatility as the use of digital currency surged. By December, bitcoins had appreciated to $23,000, with some other crypto assets appreciating even more.

Closely analyzing 2020’s volatility reveals some method to the pandemic madness. 2021 may be easier to predict, owing to the spillover effects of the global pandemic.

Speculating the crypto asset markets in 2021 can be profitable for those paying attention to the regulatory developments. Widespread cryptocurrency adoption and financial regulation will dominate the majority of crypto market trends for 2021. Let’s have a look at some of our crypto predictions for this new year. 

De-Fi Market Growth Will Continue

Ripple Labs was causing significant ripples in the banking sector, integrating blockchain technologies in over 100 banks via its dApp menu. The DeFi market was growing rapidly because of the speed, low-cost, and decentralized nature of transactions.

It hit a major blockade when the SEC sued it for running an unregistered security exchange. However, Ripple Labs has a powerful, legal reply, asserting the XRP as a commodity and not a security.

It’s not the character of governments to halt constructive technologies, and blockchain will be indispensable in overcoming the challenges of the Coronavirus pandemic. Therefore, the DeFi markets will prevail in legal onslaughts against them by finding a middle ground.

Since Covid19 struck DeFi, markets grew from a market cap of $193 billion in January 2020 to $668 billion in December and are projected to hit 39.7 billion in 2025. The phenomenal growth came as investors injected funds into digital currencies. They were escaping the volatility of the global economic shutdown.

Markets that offered crucial value but lacked liquidity suddenly got flooded with money. For cryptocurrency markets and DeFi, such liquidity can only cause irreversible, compounding growth.

More corporations will pay to use blockchain technologies for global, digital transactions. More banks will integrate dApps and Smart Contracts, and DeFi markets will achieve even more liquidity. 

Increased Understanding and Integration of Blockchain Technology

Cryptocurrencies are novel fintech, widely misunderstood seven years after bitcoins became a store and transfer of value. People grew aware of it gradually, but the Covid-19 outbreak accelerated the pace. Shrinking markets and economic lockdowns motivated the corporate class to find working solutions in digital payment networks.

As DeFi markets gained unprecedented liquidity, cryptocurrencies are increasingly becoming viable payment options for daily consumption. More businesses are embracing blockchain networks, and people now appreciate the vast potential of blockchain technology.

Blockchain is also applicable in other industries, such as supply-chain management, asset management, developing risk protocols, and running democratic elections. 2021 may see industries adopting blockchain aspects such as:

  • Tokenization.
  • Smart Contracts.
  • Decentralized Consensus.

More research and development of blockchain technologies will decentralize processes such as electioneering, global commerce, inheritance, and dividend allocation. For example, universities are developing blockchain technologies for running auctions for parking spaces.

Digital Transformation Will Become a Corporate Necessity

Let’s face it; the global pandemic could reign with fear for another whole year. Some private firms supposedly came up with Covid-19 vaccines, but Americans are largely distrustful of them.

The vaccine manufacturers aren’t liable when anything goes wrong with the vaccine, and people want someone they can sue in case of severe damages. As the conflict lingers, daily operations for many businesses will remain frozen.

Digital currencies offer decentralization, bypassing the need for currently frozen/slow financial services. Bankers and regulatory exchanges facilitating global commerce are in partial or total atrophy. Therefore, digital transformation is becoming a survival strategy for corporations.

If Ripple Labs resolves its deadlock with the SEC earlier, it could dominate the crypto markets with its dApp technology. ETH is also likely to maintain its growth trajectory if it continues engaging the corporate scene.

But work-at-home trends are likely to consolidate the 2020 gains of crypto markets in 2021. Cryptocurrencies are swapping from Proof of Working mining protocols to decentralized, peer-to-peer Proof of Stake consensus-building mechanisms.

Folks are ganging up to do business and have fun online, and they found ways of getting social during the imposed quarantine. With time, they will drive bulky blockchain transactions where cryptocurrencies will be major payment options, and Smart Contracts will replace traditional handshakes.

China Will Lead in Cryptocurrency Adoption

China led in the use, development, and innovation of blockchain technology in 2020, and it will dominate the markets in 2021. China is embracing blockchain applications on a national level.

China funds infrastructural growth and integration through digital currencies. It even instituted a state-backed Blockchain-Based Service Network to encourage the adoption of digital currencies. The communist giant also plans to provide its digital infrastructure to other nations.

The nation is so committed to encouraging Crypto Yuan adoption that it offers free, temporary tokens to entire villages and towns. Recipients are allowed to use them before an expiration date when unused free tokens disappear.

China’s aggressive adoption of blockchain technology will dissuade the EU and the United States from harassing their digital markets. Regulatory bodies will adopt friendlier, problem-solving approaches firms.

Central Banks Will Get in on the Action

Central Bank Digital Currencies are looming and could revolutionize crypto markets. The BIS reported that 80% of sovereign central banks are considering designing or developing their digital currencies for national use and international exchanges.

Central banks have enough data to appreciate the diminishing use of cash, and they want a piece of the digital payments action. The widespread growth of private cryptocurrencies also threatens them.

Central banks are also under competitive pressure from Chinese authorities who are accelerating blockchain technologies.

CBDCs will help to curb the growing influence of scammers and blockchain hackers. The rise of stablecoins will probably lay fertile grounds for the development of CBDCs, and digital currencies will become more secure than 2020.

Tightened Fintech Regulation

Fintech regulators had plenty of time to study and investigate crypto assets. If 2020 was anything to go by, legislative and oversight bodies will be more informed and hands-on. They will do a better job monitoring crypto markets.

Tax laws and consumer protection will take center stage, and digital currency firms will engage in heated negotiations with financial regulators. Both sides of the government and private digital firms will make concessions to accommodate widespread adoption.

Regulatory tightening will be great for investors and governments. These developments will make digital payments more convenient and secure, benefiting end-users the most.

Final Word

The crypto-asset markets were the most profitable in 2020, and they are likely to be even more profitable in 2021. The gains of digital payments from 2020 are irreversible, and you are well-advised investing in crypto markets.

This year saw the development of cross-chain money markets and a legal onslaught on cryptocurrencies that didn’t grind them to a halt. Therefore, the phenomenal growth will endure, and 2021 might see widespread adoption of crypto payments.

Share your predictions with us in the comments section if you have some extra insights. Let’s discuss ideas that will yield maximum productivity in 2021.


Detailed Breakdown of Bitcoin’s Four Year’s Cycles

Up to 30 companies in Japan have announced plans to issue digital yen, and Rick Rieder, the CIO of BlackRock, is taking crypto seriously if his comments on CNBC are anything to go by. According to the world’s largest asset manager, the functionality and durable mechanism of crypto assets makes them more functional than gold, a fact that is up for debate.

It seems that the financial sector around the world is gradually embracing cryptocurrency, and it’s only a matter of time before it transitions to the mainstream. As a crypto investor, the current trend is satisfying. 

But is it time to make a move and laugh all the way to the bank?

Well, the most recent bitcoin highs had some investors rolling in a sense of accomplishment and success when they cashed out at the right time. Others waited for the prices to continue the upward trajectory above $41,000, but it is now on a free fall. 

Well, understanding the price movement of bitcoins is critical to make wise decisions. 

The popular theory that attempts to explain bitcoin’s price movement is bitcoins four-year cycles.

The price of bitcoin moves in cycles of booms and busts. If we were to learn anything from history, investors’ best financial decision has been to own bitcoin in a bull market.

Let’s examine the historical price behavior to have a better understanding of the bitcoin price volatility.

Price History of Bitcoin

Satoshi Nakamoto invented the cryptocurrency in 2008, and in the following year, the first transaction took place between him and an early adopter. The first real-world transaction took place when a bitcoin miner used bitcoins to buy pizzas in 2010 in Florida.

Bitcoin’s trading history is characterized by volatility since its creation in 2009. It has a reasonably short life, but it has seen a lot of action. One upon a time, the cryptocurrency traded for next to nothing, and the real price increase was from $0.0008 to $0.08 for a single coin. 

All along, bitcoin has been through significant rallies and crashes. Regardless, interest in bitcoin has surged in 2020 and is expected to continue in 2021. By 2020, the crypto-currency had recouped all its losses to record an all-time high. 

The Stages 

Stage 1: Exponential Highs

At this phase, the fear of missing out (FOMO) and euphoria among bitcoin investors is at its highest. The emotions compel many people to purchase at abnormally high prices leading to a prolonged bull trend that pushes the prices through the roof.

The high exponential stage is also called “topping out,” where the bitcoin prices reach their peak. 

Stage 2: Correction

The correction stage comes immediately after the euphoria that characterized the previous 12 months. The stage corrects for over-optimism by shedding considerable valuation.

Profit-taking investors create a sell-side pressure, which causes the bitcoin to drop a bit after an abnormal growth.

Stage 3: Accumulation and Recovery

Following the price correction, the sell-side momentum starts to slow down and bottom out. It is at this stage that bargain buyers take advantage of the discounted prices to accumulate bitcoins. 

Eventually, new demand starts to form, and the phase becomes a point of maximum financial opportunity where the prospect of reward overtakes that of the associated risk. The new growing demand is driven by the desire to make enormous profits. 

Stage 4: Continuation

After bottoming out, bitcoin starts to go up. Historically, the continuation stage has been all about exceeding the sell-side pressure characterized by sellers resisting the growing prices.

The continuation stage is an essential technical step that indicates a shift in market psychology. The stage tends to encourage strong emotions to result in buy-side momentum. Following a successful 12-month close, the market psychology then transitions to buying from selling.

The Effect of Bitcoin Halving 

Bitcoin halving occurs when the value of new bitcoin created every 10 minutes is halved. The latest bitcoin halving reduced the block reward of 12.5 to 6.25 every 10 minutes. 

Typically, bitcoin halving marks a fundamental variation in the protocol of the cryptocurrency. The event also has a significant impact on the prices of the bitcoin as well. It acts as a catalyst to propel the prices to new heights. 

Given that 21 million is the maximum supply cap, the halving event means that it will take much longer for all the bitcoin to go into circulation. It also means that all the bitcoins created will be less and less, limiting the supply. The scarcity of bitcoins increases value, which is why bitcoin halving acts as a catalyst in the new bull market. 

In the past, the bitcoin price has grown exponentially following the halving events. This observation can be used to explain the current situation.

The bitcoin’s next phase one was expected to be in 2021 to manage a 12-month candle close above the price level of ~$14,300. It has clearly exceeded this.

The belief was that the $20,000 mark will spur the buy-side momentum driven by investors’ intense emotions.

The 12-month price chart indicated that ~$14,300 may actually be the inflexion point in market psychology. Based on the 4 Year Cycle historical trends, a candle close above ~$14,300 provides the necessary confirmation that the prices may go above $20,000 in 2021. That is just what happened based on the current prices. 

Current Bitcoin Situation and Interpretation

A few days ago, on 8th January 2021, the world’s largest and most popular cryptocurrency was posting highs of $41,962. It is now just above $30,000, recording losses of up to 20%. Bitcoin is in free fall, which has already wiped $130 billion off the market.

The fall in prices comes after the UK Financial Conduct Authority warned investors that they could lose everything based on difficulties in valuing crypto assets and price volatility. 

However, the problem is that the price volatility will pique the interest of individual investors whose ability to take on significant losses is a far cry compared to institutional investors.

Since bitcoin was created, the debate has raged about whether the abnormal rises in prices constitute market bubbles or are objective indicators of its future role in the financial ecosystem. A market bubble is when the asset value becomes over-inflated.

Some investors will see the latest bitcoin rise and fall as a bubble that has burst. On the other side of the spectrum, some experts believe the bitcoin fluctuations are nothing out of the ordinary and will continue to occur towards its eventual valuation.

The considerable upside swings followed by corrections are normal behaviour and confirm the bitcoins four year cycles is more than just a theory. 

Bitcoin prices were in the first stage of exponential growth to reach an all-time high of $41,962. Apparently, the cryptocurrency is now in the correction stage before it enters the accumulation and recovery phase, and eventually, continuation.

Final Word

As with any other new technology, bitcoin prices are highly volatile, but it’s normal behavior. Based on the four-year cycles, bitcoin was experiencing exponential growth towards the start of January 2021, but it is now in the correction stage. The slashing of up to 20% of its value is just a normal phase of correction and nothing to cause panic.

Bitcoin investment is not for the faint-hearted. It is only for those with higher risk tolerance levels, sufficient exposure to the asset class, and a long term view of the technology. It would be best if you never lost sight of the big picture. Focus on the forest as opposed to a single tree. Happy trading, folks! 

Crypto Daily Topic Cryptocurrencies

5 Crypto Trading Strategies To Bank on in 2021

Cryptocurrencies are rapidly transforming the financial sector. At the moment, they’re finding greater acceptance in payments besides offering an alternative investment vehicle. The reasons for their increased popularity are varied. Chief, though, is their decentralized nature and potential for high returns. From these reasons, it is easy to see why they’d be an attractive investment. 

Crypto trading is as lucrative as it’s risky. It is, therefore, imperative to adopt a solid investment strategy. Again, investing in digital assets needn’t be a complex engagement. The market is rich in strategies that ease potential investors’ foray into the space. 

This article examines five proven strategies that one may bank their crypto trading on in 2021.

Which are the Best five Trading Strategies to Adopt in 2021?

As already indicated, there is a myriad of trading strategies at any investor’s disposal. Individual preferences determine the choice of the means to employ. Here are five concrete plans that you can depend on this year. 

1. Scalping

Scalping is a trading strategy defined by short durations between a trade’s opening and closing. The underlying thinking is that little profits snowball into huge ones in time. Scalpers are traders employing this technique. It utilizes market volatility and is handy in slow market days.

Types of Crypto Scalping Strategies

A scalper may pick from any of the following five strategies:

  • Crypto Range Trading- the range is the difference between the price support and resistance. Scalpers buy at support and sell at resistance.
  • Bid-Ask Spread- The scalper opens a position at either the bid or ask price. To get a profit, they then quickly close the position a few points lower or higher.
  • Arbitrage- here, the investor profits from trading the same asset in different markets. Arbitrage is either spatial or paring.
  • Price Action– the trader uses price movements to make trading decisions. 
  • Margin Trading- It entails transacting with borrowed funds.

The Pros and Cons of Crypto Scalping

Like any other trading strategy, scalping has its pros and cons. One advantage is that the small position sizes make it low risk. Additionally, regular small price changes enhance profits, and one can automate their transactions. 

Finally, affordable entry positions expand trading opportunities.

On the other hand, scalping is demanding; Any slight delay may lead to losses. Further, it has low returns per trade, and traders incur higher transaction costs.

2. Buy the Dips and Hold

Downswings offer excellent buying opportunities. If the affected asset is strong, the price will appreciate once it gains its market confidence.

An examination of cryptos reveals periods of over and undervaluation. Additionally, the crypto market reacts to media coverage. Positive reportage triggers increased acquisition at overvalued rates. The reverse causes traders to panic, therefore, sell their coins below their real value.

Undervalued cryptocurrencies are ideal investment opportunities. Traders using this strategy study the market to determine peak undervaluation. They also predict the earliest recovery. After this, they do their trades holding out for profit when the market corrects itself.

Pros and Cons of Buying the Dips and Holding

A significant plus for this strategy is that one needn’t have special high-frequency trading software to trade. It is convenient as a single trade suffices. Moreover, one profits from both the cryptos upside and the undervalued amount. 

The downside is that it is a long term approach. There aren’t quick profits here. Additionally, it requires a proper grasp of the market. Finally, the strategy calls for calmness amidst market turbulence.

3. Fading Trading

A high-risk trading strategy, fading involves betting against the market’s momentum. The trader sells when there’s an upswing in the market and buys when the market experiences a downswing.

Owing to its high-risk nature, it’s a suitable method for experienced traders. Also, it’s ideal for risk-inclined individuals. However, it could yield dividends when correctly applied and is best suited for a highly volatile market.

Pros and Cons Of Fading Trading

When adequately executed, Fading can be a lucrative trading strategy. Traders can realize profits from any market reversals, a situation that always follows an upsurge or a markdown. That said, it is a risky strategy. One risks incurring massive losses if they misread the market.

4. High-frequency Trading 

High-frequency trading is the most profitable yet complex trading strategy to use. It involves the full automation of trading strategies. HFTs are algorithmic and entail volume trading in milliseconds.

Pros and Cons of High-Frequency Trading

HFT trading is beneficial in several ways. Firstly, it reduces the bid-ask spreads, enhances market efficiency, and creates high liquidity to mitigate the effects of market fragmentation. Further, HFT removes emotions out of trading hence improving better decision making.

On the other hand, HFTs could be disadvantageous. For example, algorithms are susceptible to spoofing, thus price anomalies. Secondly, the hardware and software required for trading are costly. Also, the risk of glitches isn’t far away.

5. Golden Cross and Death Cross Trading

The golden cross denotes a situation where a cryptocurrency’s short term average crosses its long term average. Whereas the short term average comprises the currency’s 50 days average, the long term is its 200-day average.

The death cross, on the flip side, is the opposite of the golden cross. It is the point when the short term average goes under the long term average. The gist of this strategy is buying at the golden cross and selling at the death cross.

Analyzing the changes in trading volumes confirms the occurrence of these trends. Although some use technical indicators such as RSI and the MACD, many consider volume one of the best indicators. 

Pros and Cons of Golden Cross and Death Cross Trading Strategy

A major boon for the strategy’s users is that it helps to determine the market trend. Using both indicators is essential in pointing out attractive entry and exit points. 

Conversely, other schools of thought consider the two to be lagging indicators. Thus, they indicate momentum after price movements have occurred, not before. Additionally, some of the momenta they show could be temporary hence unreliable.

Final Thoughts

The growth of cryptos has ushered in an exciting period in global finance. Besides expanding the payments sector, it has created alternative investment avenues. This growth is fuelled by, among others, the higher ROIs recorded in the space. 

To the first time investor, navigating crypto investments could be exacting. For profitability, they need concrete strategies. Luckily today, there are many sound ones that help ease their entry into the sector. These vary in their utility, and ultimately the choice of one over the other is individual. That said, they serve the same end; taking the guesswork out of investments. 

So, let us know which of the five strategies you’ll be adopting this year!



3 Assets that Will Keep Your Investment Inflation Resistant

Inarguably, the value of the dollar today is not the same as it was a decade or two ago. You use more currency to buy less, and that is what inflation is all about.

Inflation can be defined as the measure of the average price level, in an economy, of a unit of goods and services. It is the increase in the price over a particular period, where you cannot use the same amount of currency to purchase a specific item. 

No doubt, the pandemic and the rushed measures to control it were devastating to the world economy. Governments worldwide scrambled to shut down their economies and started printing money to control the spread while also trying to keep the local market functional.

The main issue with printing excess money is that it eventually decimates the host government’s currency and pushes the economy into an inflationary spiral. 

Nonetheless, inflation is a natural event, and only the most disciplined investor benefits from it or reduces its effect on their investments. 

How to Safeguard Against Inflation

In response to the COVID-19-inspired economic fallout, the Fed was forced to pull out all the stops in a bid to control it. These measures have pushed the Federal Reserve balance sheet to over the $7 trillion mark from $4 trillion, and further contractions are expected.

But what should you do as an investor? 

Ideally, there are two factors to look out for when searching for an inflation-resistant asset; real yield and store of value.

An asset with a large store of value such as gold does not lose its purchasing power over a particular period. If the asset can also create income, the better, as it fulfills the two requirements.

There are a couple of other benchmarks that measure potential hedges against inflation, and they include how the asset holds its value over time. Other essential factors include how people perceive the assets as a store of value across borders and how quickly it can be monetized.

Lastly, the ideal inflation-resistant asset should be easily movable across geographical borders in case of unforeseen hurdles.

The perspective of bitcoin as a viable store of value that can be monetized quickly is gaining traction, at least in recent months. Bitcoin is also beyond the control of any government and is, therefore, borderless.

Understanding the Top Three Assets That Will Keep Your Investment Inflation-free

While changes in the inflation level depend on various factors, such as the rapid increases in raw materials prices and rising wages, the coronavirus pandemic is the most significant.

In the last century, the US dollar buying power has been on a free fall, mostly because of the monetary, fiscal policy adopted. The Federal Reserve’s primary response has been to print money and purchase securities on the open market to plug an economic crisis like it is happening now. Although it adds more liquidity to the market, this policy diminishes the value of the dollar, which sometimes aggravates an already dire situation. 

Consumer Price Index (CPI) is the primary method of tracking US Dollar inflation. As far back as 1948, the inflation rate has been at an average of around 2%. This translates to a loss in value of up to 2% every year. That means the money in your savings account is losing its value.

Although inflation is a significant characteristic of market economies, it is possible to plan for it by focusing your investment in asset classes that outperform the market during such challenging times.


Traditionally, gold has been the perfect inflation hedge based on its stability. Not long ago, gold went above the $2,000 an ounce ceiling to record a 27% raise last year, 2020, which is quite enormous. 

In fact, many people have previously viewed gold as a possible alternative currency, especially in countries whose money is losing value fast. This precious metal is tangible and real and tends to hold its value in the long term, like no other asset.

Typically, it is common practice for gold or other strong currency to replace a weakened local currency to keep the economy sane. Central banks around the world hoard gold as they start to print money. They spend more of the bad money, which loses value and hold on to the good money, which is gold.

Unfortunately, gold is not always the perfect hedge in tough economic times. When inflation is in an upward trajectory, central banks move in to enforce a monetary policy that includes increasing interest rates. Assets such as gold, with no yields or any other accumulating rewards, are not always the best investment vehicle.

Other better assets will protect your wealth from inflation and still give you good yields. However, diversification is vital for a strong portfolio.


Last year, bitcoin was up by 66%, and the rise continued into the new year to post a high of $40,519.45, an all-time high. With its exceptional value, bitcoin is hedging against inflation and chaos.


The borderless and decentralized cryptocurrency is beyond any government control, and they cannot print more of it like they do with the standard currency. The maximum bitcoin supply is 21 million, which serves to limit the supply and prevent eventual dilution.

Bitcoin supply remains constant, regardless of what the local governments do.

Interestingly, the current government shutdowns are playing in the hands of digital assets such as cryptocurrency, thereby increasing its value as an inflation hedge asset. But how is that so?

Clearly, the current shutdowns have directed the focus to digital currencies. This may be one of the reasons that propelled bitcoin to an all-time high. It is one of the few assets posting excellent results, which is good for crypto investors. 


Thanks to coronavirus, the S&P 500 index surged 55% from the lows observed in March last year despite all the groom. Similar to bitcoin and gold, the lockdowns and the resulting money printing has caused a rally to the stocks. But how can this happen? 

According to economists, the stocks’ value is not appreciating, but rather the dollar is depreciating against the stocks. The surge in equities is a significant indication of diminishing trust in the local currencies, which forces the wise investor to add more stocks to their portfolio to safeguard against losses.

Apparently, investors have lined up to take up stocks at the expense of fiat currencies.

Final Word

Ostensibly, most investors do not give a hoot about inflation and its effect on day-to-day trading and investment. Well, indeed, what you can’t see can’t hurt you, but inflation is the exception. It will hit where it hurts the most; your financial well-being.

The common practice is to hoard local currency in the form of savings to safeguard against tough times. Putting away something for the rainy day is alright, but the strategy has a significant flaw. You lose a bit of the savings to inflation. Saving in a bank is not a viable option, especially when the global central banks do everything to devalue the local currency.

The looming economic crisis, driven by the continued printing of money, calls for wise investment decisions. Ideally, invest in inflation hedge assets such as gold, bitcoin, and stocks to weather the current storm. Don’t be on the losing side by putting so much faith in the dollar and other global currency.


5 Exchanges that Don’t Need KYC Verifications

The KYC (Know Your Customer) regulations are standard with financial institutions around the world. These laws were enacted to prevent money laundering activities in the financial industry, and every one of us has been subject to them, in one way or another. 

The regulations require institutions or platforms to verify individuals’ identities before using their money transmission services, and most recently, virtual currencies. 

Cryptocurrency and blockchain technology is the new kid in the financial block, and already disrupting the market with lower transaction fees, confidentiality of transactions, and improved security against fraud.

Surprisingly, the KYC verifications are gradually creeping to cryptocurrency exchange platforms. This means that getting your money from the cryptocurrency exchange is a bit more complicated than sending money. But you don’t need to use “surveillance exchanges,” as critics call them, to trade.

If you prefer to withhold personal information with your cryptocurrency investment, you can use anonymous cryptocurrency exchanges. We list five of the best exchanges that don’t require KYC verifications.

Are KYC Exchanges Safer than non-KYC Exchanges?

No doubt, the exchanges that mandate KYC verifications may sometimes offer better security. The platforms are fully regulated and may provide better redress in case of a hack or when something goes wrong. 

On the other hand, regulators may not be able to track culprits in a fully anonymous platform. It can also sometimes be difficult to access important information such as inflation rate, currency generation, and other blockchain transactions. Regardless, the benefits of anonymity in cryptocurrency outweigh its downsides. 

BitMEX is a cryptocurrency derivatives exchange that is the latest to join the club of cryptocurrency platforms aligning themselves with the traditional financial institutions’ regulations. Since August 28 of 2020, the exchange has been rolling out KYC. All traders are required to submit photographic ID and other identifying information by February 12, 2021.

But this does not imply non-KYC Exchanges are not safe. In contrast, many cryptocurrency investors prefer non-KYC platforms. This is because they believe KYC is a powerful magnet for hackers, making everyone unsafe. Every time you make a transaction, you give out your crypto address that can be used in blackmail, social engineering, hacking, or by law enforcement.

At the Web3 Summit, Edward Snowden was given a headline spot, and this goes to show that privacy hardliners are not going to relent anytime soon. The action by BitMEX could see migrations to non-KYC exchanges such as ByBit, but still, that is a wait-and-see situation. 

The main goal of high-value crypto traders is to be in cryptocurrency exchanges that blend anonymity and security to a satisfying level. If any one of the two fails, the investors move to better alternatives, and there will always be crypto exchanges such as ByBit ready to receive them with open arms.

As a crypto trader, you can choose to keep your personal information and protect your identity from the reach of criminals by choosing secure, anonymous crypto exchanges.


The Hong Kong-based cryptocurrency exchange is currently the most popular and the world’s largest, with up to 10 million active users, ahead of Bittrex. With Changpeng Zhao as its head, Binance has been one of the most innovative with creating the Binance Coin (BNB) token. Binance supports over 150 cryptocurrencies.

Users can access a 2 BTC worth of cryptocurrency trading limit without KYC verifications, with additional benefits of up to 50% reduction in fees. You do not need verification for spot trading.

However, transactions involving large amounts of BTC will involve completing KYC procedures to use the Binance platform. Binance US, which the US traders must use, requires KYC verification during registration.

You can deposit funds on Binance through credit cards, bank transfers, and crypto deposits. Holders of its native token, BNB, enjoy a discounted rate. The exchange has a referral program for BNB tokens, among other rewards.

There are some signs that Binance could go the way of BitMEX and transition to full KYC sometime in the future. This is mainly because it is compelled to align with numerous jurisdictions’ requirements where the platform operates. They choose to avoid the push and shove involved with the regulators of different countries and regions. 

Block DX

The exchange operates on blockchain interoperability protocol or the Blocknet, allowing communication between private and public blockchains. Blocknet also makes it easier to interact and exchange crypto among the platform users. 

The Blocknet Protocol-powered decentralized exchange allows users to transact without an intermediary. It has no withdrawal and trade limits, thus allowing greater flexibility. The exchange provides trading pair freedom, where all you need is a small amount of its native coin, BLOCK, to take an existing order. You do not need BLOCK tokens to create an order.

According to the non-custodial exchange developers, Block DX does not have any pause button, kill switch or email notifications. There are no interruptions in scheduled or unscheduled maintenance, and it does not have any offshore company. It claims to be the best definition of a decentralized and anonymous cryptocurrency exchange.

What separates Block DX from its other decentralized peers is that it decentralizes all its platform components. You enjoy more flexibility and freedom.


The anonymous cryptocurrency exchange has been around since 2013 and has considerable experience in the crypto space. 

The platform allows instant transfers across various cryptocurrencies to cryptocurrency wallets. The exchange has a reasonable fee of 0.5% and is very committed to protecting your privacy. Changelly only requires an email address.

Changelly is integrated into the Stratis app, and you can conveniently trade the $STRAT tokens right on your mobile device. But still, the exchange supports up to 150 cryptocurrencies. $STRAT is among the leading cryptographic tokens that you can freely trade in open exchanges. 

However, you need supporting cryptos such as dash and Ethereum to exchange for BTC. Changelly is a centralized exchange, but it does not require id verification to access the swapping services. The only instance where KYC verification is necessary is when Changelly detects suspicious activities.

The platform has a vast array of acceptable payment services apart from the crypto deposits. You can deposit through credit card payments, bank transfers, and even ApplePay. Besides, its trading algo is one of the most impressive yet, which scans other platforms to find the best trading prices.


This platform matches the ability to leverage trades by up to 100 times by BitMEX without requests for any personally identifying information. This strategy helped ByBit accrue more than a million users worldwide since its launch in 2018.

ByBit may seem too lax with security for a casual observer, but nothing could be further from the truth. ByBit is only part of a handful of cryptocurrency exchanges that can genuinely be said to have never been breached since its establishment.

ByBit leverages two-factor authentication sign-ins compatible with authenticator apps, SMS, and email. Funds are usually in multi-signature wallets stored in offline cold storage.

The Singaporean crypto exchange has a wide variety of features for margins trading. The perpetual swap product, BTC-USD, is the most popular with ByBit, and you can trade ETH, EOS, and XRP. 

ByBit’s crypto margin trading guides have a wealth of tips and tricks on swapping derivatives. Anyone around the globe can use ByBit without the need for KYC verification. The platform has both Android and iOS compatibility and is available in different languages. 

Unfortunately, ByBit bars users from the US. 


The hybrid cryptocurrency exchange, which has centralized and decentralized features, is a favorite for Ethereum holders. In an operating environment where owners can be liable for illegal activity in their exchanges, IDEX has pursued pragmatic decentralization to influence legal treatment by the regulators.

IDEX is mainly designed for Ethereum and Ethereum-based tokens (ERC-20) trading. 

The platform employs blockchain technology security and privacy to allow anonymous trading by using only the wallet addresses. You only need to deposit tokens to unlock the wallets and start trading. The IDEX native token holders receive a percentage of the transaction fees generated on the platform.

As of August 23, 2020, all users in the IDEX platform require partial verification to trade. You will also need passport scans and selfies for withdrawals of $5,000 or more. US customers are restricted from trading particular assets on the platform.

Final Word

The world of digital currency was propelled by, among other factors, anonymity. The increasing need for KYC verification to improve security also acts as a barrier. In some way, KYC is a potential threat, as well, in case of a data breach on public ledgers. 

Well, bitcoin mixers are an excellent option for anonymity and security. Nonetheless, a well-established crypto exchange platform that doesn’t require KYC verification is usually sufficient in most cases. Do a little digging before signing up for a cryptocurrency exchange. Check its policies, read the reviews, and weigh the quality of its customer support.

The above exchanges are only a few of the well-established and reliable crypto platforms you can start with. There are many others, as well. Happy trading!

Crypto Daily Topic Cryptocurrencies

Impact of DeFi in the Banking Sector

Blockchain is revolutionary fintech, and DeFi applications are taking success in financial services to a whole new level. Over 1.7 billion people remain unbanked, and DeFi is empowering internet users with permissionless financial services that cut out third parties.

Investors locked more than $15 billion within DeFi protocols in 2020. While decentralization has only captured billions, traditional, centralized finance controls the vast trillions of dollars transacting globally. Therefore, more innovations and marketing will suffice for further adoption.

However, with the industry admitting roughly $500 million from investors monthly, the prospects are changing. DeFi offers irresistible convenience and cost-effectiveness. The potential is also vast.

DeFi encompasses digital lending, borrowing, staking for capital gains, and regular income. DeFi services are permissionless, and they execute most transactions through tokenization and smart contracts. Eliminating all the third-parties and profit-seeking intermediaries make DeFi cost-effective.

Laws, rules, and regulations are programmed into blockchain protocols, and DeFi impacts every aspect of traditional financial services via automation. The impact is so great that it could change human interactions on an international scale.

In this article, we are peering into DeFi and its impact on the finance industry. A chronological outlook of blockchain developments suggests a pattern of innovation and adaptability. Understanding this pattern is crucial for your future investment projects.

The Ethereum Blockchain: How Are dApps Taking over the Banking Sector?       

To start with, let’s appreciate that the Ethereum community has revolutionized and accentuated DeFi as no other blockchain has. The ecosystem is advanced enough to evaluate systemic risks, and it reports DeFi Scores for platform security.

The ecosystem supports open-source composability, and the Ethereum blockchain harnesses the collaboration of independent developers worldwide. Borderless, open-source development has encouraged software designers and coding experts to focus on their strengths.

Ethereum’s infrastructure allows users to integrate various DeFi applications covering vast, diverse industries such as gaming, credit, supply-chain management, and capital markets. Laying and building applications on each other creates a vast network effect.

The Ethereum community is significant in DeFi because its network has over 7,083 live, global, main-net nodes, over 88 million unique users, over 42 million smart contracts executed.

You can utilize over 2,773 decentralized applications along with over 23K daily users. DApps are popular and post daily transactions exceeding 78K because of their:

  • Open-source codes.
  • Decentralized consensus and governance.
  • Noncustodial, permissionless services.
  • Tokenization and the use of smart contracts.

The diversity of dApps supports digital currency banking services, alternative services, DEXs, and P2P lending. Users embrace digital transactions because they are fast, secure, borderless, pseudo-anonymous, and irreversible.

Cross-chain interoperability came into DeFi markets in 2020, and you can now lend, borrow, and trade tokens across different blockchain networks.

How DeFi Saved Global Finance from Total Atrophy

When the Coronavirus became a global pandemic, states imposed mandatory lockdowns. Globally, the banking sector came to a standstill, and the international exchange services and other intermediaries such as asset managers, insurers, and bankers.

People were required to stay at home, and only essential services were allowed to proceed. If we didn’t have alternative financial services, most global supply chains would have suffered complete atrophy.

Governments created concerns about the value of money when they printed cash to bail out people and agencies. People and investors got more concerned that they pay taxes, yet governments dilute their savings by printing more money.

The threat to traditional finance was runaway inflation and the concern that credit is limited for those needing it the most. The international investment landscape went through shocks as investors turned to DeFi, seeking to mitigate the effects of a global pandemic.

Fintech Verticals Most Impacted by DeFi

Open Banking and Financial Data

Data is one of the most valuable commodities in the Mega Big Data era. Banking institutions traditionally hoarded all the financial data of users. In the US, financial data is worth over $15 billion. However, bankers won’t let you access it.

DeFi frees up your financial data for your benefit, allowing you to make intuitive, cost-effective investments. DeFi applications and services are providing open-source, immutable, financial market data.

Moreover, pseudo-anonymity and permissionless transactions prevent a handful of corporations from accessing your private transaction history.

Decentralized Exchanges

DEXs empower users to control their funds, giving them exclusive access to their private keys. These permissionless exchanges reduce the risk of custodian third-parties and diminish the risk of custodian third-parties losing your funds through major hacking events.

Cross-chain money markets are completely cutting off permission-based, custodian exchanges where you need expensive, third-party intermediation to swap bitcoins for other tokens like ETH, BCH, and XRP. Therefore, you can take just seconds to execute fast, borderless, almost-free transactions.

Borrowing and Lending

DeFi allows people to earn high interest on their savings. As crypto-assets stabilize volatility issues, DeFi is empowering crypto users to save profitably. You don’t need banks to store or transfer value. You can just use your smartphone and an internet connection to upload your finances to online savings software with blockchain transparency, security, and profitability.

DeFi platforms offer flexible interest payments, with some paying out interests every second. The best part is that you don’t need credit checks to take out DeFi loans. You only need to collateralize with your long-term investments. DeFi borrowing costs for commercial use are tax-deductible.

Tokenization and Asset Management

The tokenization of assets is at the core of decentralized finance. It’s revolutionizing assets-trading across the globe, offering traders new markets and opportunities. DeFi offers reliable asset and supply-chain management via smart contracts.

You can make international deals and trust total strangers to hold their side of the deal. Smart contracts don’t release payments unless all predetermined conditions are fulfilled. Tokenization is crucial in executing group contracts such as the ones utilized in:

  • Liquidity pools.
  • DeFi insurance protocols.

Parting Shot

The impact of DeFi on the banking sector threatens its existence, but bankers can adopt dApps to survive the storm and thrive. The banking sector won’t disappear, but it will evolve drastically as DeFi revolutionizes how we interact and do business.

Understanding the role of DeFi in 21st commerce is important for your financial future. Remember that these technologies offer cutting-edge convenience, and the market is growing exponentially. Therefore, you need to join in on the benefits or risk falling behind.

What do you think about DeFi, and what are your predictions on 2021 banking? Share your views in the comments section.


Crypto Daily Topic Cryptocurrencies

DeFi vs CeFi Investments: What’s the Difference?

The advent of the blockchain and Bitcoin ushered a new era of transformation in the financial sector. The latter’s successes catalyzed further innovations in this space. One of its earliest adaptations was Centralized Finance( CeFi). Further developments have seen the introduction of Decentralized Finance(DeFi). 

Though the two are diametric opposites of each other, they serve one end: the expansion of financial services. But what do these concepts mean? What are their pros and cons? Can we find commonalities between the two? Finally, is there a way of bridging the divide between them?

This article will use the questions above to differentiate CeFi and DeFi investments. In this way, it aims at deepening your understanding of these crucial financial developments.

Understanding CeFi

CeFi is centralized finance and comprises closed financial markets. It entails a central authority controlling all aspects of transactions between peers. The said authority could be a bank, government, or any other uninvolved third party. 

Salient Features of CeFi

A keen look at CeFi investments reveals several important features. First, there’s a strong emphasis on KYC and AML requirements. In keeping with their jurisdictions’ laws, CeFi service providers require their users to provide personal information, including identity and residence details.

Secondly, CeFi investments are custodial in that they hold their users’ private keys. They are centralized and offer cross-chain services. CeFi investment services also allow for the exchange of different cryptos issued on different blockchains.

Advantages of CeFi

The popularity of CeFi investments speaks of their usefulness. For instance, they guarantee the protection of depositors’ funds. As they’re custodial, CeFi service providers assure their users of the safety and returns on their users’ funds.

Additionally, they undertake to secure one’s private keys. Since the service provider holds the private keys, there’s no danger of ever  losing them. Moreover, they have dedicated customer support systems. 

Disadvantages of CeFi

There are several deficiencies linked to CeFi. Among these are higher transaction fees. Because they use intermediaries in transactions, they charge higher fees. Another shortfall is that they lack transparency as they don’t provide for a public audit of transactions.

The centralized nature denies users control over their funds and makes them invasive in nature. Their  KYC requirements demand full disclosure of personal information. Users can quite easily lose their funds on these since CeFi investments are an easy target for hacking owing to their custodial nature.

Decentralized Finance (DeFi)

DeFi is an acronym for decentralized finance- a movement that champions the provision of P2P financial services. DeFi solutions give parties greater control over their transactions. They achieve this by eliminating centralizing authorities – banks and governments – from the exchanges.

Last year saw a proliferation of DeFi platforms. Currently, the major players in the space include Compound, Yearn Finance, Uniswap, and Marker DAO.

Key DeFi Features

A number of features define DeFi investment projects. To begin with, they are permissionless, which means that anyone can use them, regardless of their geographical location.

On top of that, they depend on Smart contracts, a set of code defining the relationship of the transacting parties. The smart contracts work together with Decentralized apps (Dapps) to automate transactions.

Again, DeFi investments are Blockchain-based. They run on the Ethereum blockchain and have wide applications across the payments, lending, and trading sectors.

Advantages of DeFi

The ballooning of DeFi projects points to them being beneficial. Here’s a rundown of their key advantages. A key feature is that DeFi investments give users autonomy over their funds. The user is the sole custodian of their investment.

Equally, it is expedient as it eliminates third parties, which helps to make it more affordable. Furthermore, DeFi investments are tradeable, thanks to tokenization, which allows for trading in micro-units.

Another key feature is that they’re accessible. DeFi investments are open to everyone, notwithstanding their location. They are also transparent since their deployment on the blockchain opens transactions to public scrutiny.

Disadvantages of DeFi

Although advantageous in many ways, DeFi platforms have their shortcomings. The threat of losing assets ranks highly among those. DeFi users may permanently lose their crypto assets by losing their private keys or mistyping their wallet addresses.

In close tow is the possible exposure to scams. Many cons have infiltrated the DeFi Sector. These take advantage of the absence of centralized control; victims have very little recourse, if any, in such cases. 

Significant Differences Between DeFi and CeFi

The differences between CeFi and DeFi are more than in the terminology. As the following points will indicate, the two platforms are stark contrasts of each other.


Centralized authorities run all aspects of CeFi platforms. The users have to subscribe to a set code of regulations. On the contrary, DeFi platforms look to their user communities for governance. Some of them issue governance tokens that enable holders to participate in the decision-making processes. An example is Compound (COMP).


Both CeFi and DeFi have unique features defining them. For example, CeFi projects are custodial while DeFi projects are non-custodial. Again CeFis offer dedicated customer services, which DeFis don’t.

Further CeFi investments adopt the use of Centralised Exchanges (CEX). On the flip side, DeFi investments use Decentralized Exchanges (DEXs).

Whereas CeFi projects are permissioned, DeFis aren’t. CeFis use third parties to create trust, while DeFis are trustless networks.


CeFi platforms conform to strict regulations of the jurisdictions they operate. In compliance, they undertake thorough KYC and AML reviews of their users. On the other hand, DeFi is nascent and unregulated. They, therefore, dispense with KYC requirements. 

That said, many jurisdictions are instituting regulatory measures in crypto operations. The Securities and Exchange Commission of the US oversees cryptocurrency trade.  At the same time, the European Commission is pushing for a comprehensive legal framework targeting cryptos.


As CeFi runs centralized exchanges, they charge higher fees. The higher fees arise from the need to maintain the platform, pay their staff, improve their offering, among others.

In contrast, DeFi platforms are affordable. They employ decentralized exchanges that don’t provide custody services and don’t have teams engaging in their day to day running.


CeFi and DeFi investment platforms have different approaches to raising liquidity. CeFi projects raise liquidity by matching buyers’ and sellers’ orders akin to forex or stock markets. DeFi projects in reverse employ automated market makers that  pre-fund both sides of the trade.


The custodial nature of  CEXs increases their susceptibility to cyberattacks. Although CeFi platforms invest in robust security systems, it isn’t unusual to hear of major platforms getting hacked.  


DEXs, however, are noncustodial. Thus are less susceptible to such attacks. However, vulnerabilities in their smart contracts could expose them to the theft of funds.

Similarities Between DeFi and CeFi Investments

Although different, the two platforms find convergence in certain areas. For example, they offer similar financial services. These include trading (spot, derivatives, and margin), borrowing and lending, payments, and the development of stablecoins. 

Also, both systems bank on innovation. They use transformative blockchain technology. Further, both serve the digital assets ecosystem.

Parting Shot

CeFi and DeFi platforms are polar opposite. That said, they serve similar functions in payments, lending, and trades. Moreover, both are at different stages of their development, with CeFi having a headstart over DeFi. This gap in development calls for urgent redress. 

To that end, several projects and platforms are working on appropriate solutions. Binance is one of them. Apart from reducing the risks inherent in DeFi, there’s a need to mainstream it. Moreover, there must be a simplification of the DeFi adoption process besides building robust DeFi communities.


Crypto Daily Topic Cryptocurrencies

A Complete Guide to DeFi Taxes: Everything You Should Know

2020 was revolutionary for DeFi markets, and investors flooded the young industry with over $7billion from a mere $1.2 billion. As the market cap and number of transactions surged, regulators came up with responsive ways to tax cryptocurrency income. 

Initially, taxes were a foreign concept in crypto realms, but the IRS made definitive tax rules for blockchain transactions. Most digital currency taxation policies are based on cryptocurrencies, but regulation is spilling over to the DeFi markets.

Most crypto users are ignorant of digital currency tax laws, but the IRS will not let you plead ignorance. The federal tax agency is decisively cracking down on crypto tax compliance, and this article will help you gain some valuable insights.

Reading on will help you keep compliant with DeFi taxation requirements. Even more importantly, it will help you navigate DeFi, so you trigger as much tax deductibility as allowed in novel legal confines. 

Crypto Taxes 101

The IRS categorizes digital tokens as properties and not currencies. Bitcoins, for example, are capital assets that can attract profits and losses from transactions.

Reporting your crypto taxes gets harder with the increasing number of blockchain transactions per financial year. The IRS adopted and has never changed its use of first-in, first-out accounting, which means you should determine your net gains/losses on crypto assets.

Profits are categorized as long-term or short-term capital gains. Losses on cryptocurrencies are considered deductible capital losses.

To prevent crypto holders from absconding cumbersome tax computing and filing, the IRS imposes the form 1099-K for all crypto exchange users posting over 200 transactions per year. This file is similar to form 1099-B that stockbrokers use for filing capital losses/gains, but it has some unique provisions.

Introduction to DeFi Taxes

DeFi exists within cryptocurrency realms, enabling digital token users to trade, lend, and borrow via low-cost automation that rules out third-party financial services. In DeFi markets, crypto owners earn interest on lending platforms, and the interest is paid in the same digital currencies.

Therefore, crypto interests increase the number of digital currencies. When you earn interests through your crypto tokens, a different taxable event occurs from profits/losses. Taxable events in DeFi markets transpire when:

  • You trade one cryptocurrency for another via cross-chain money markets, realizing either profits or losses.
  • You trade crypto tokens for fiat currencies, either realizing either profits or losses.
  • You spend digital tokens on goods and services, realizing either profits or losses.
  • You earn in cryptocurrencies, and DeFi services create numerous earning opportunities where you trade your time and skills by executing network protocols. Moreover, some CEOs and athletes prefer getting their salaries in digital tokens.

These taxable events in cryptocurrency transactions are either:

  • Capital gains.
  • Ordinary income.

Ordinary Income vs. Capital Gains Income               

Ordinary income taxes apply for normal jobs, and the IRS doesn’t classify cryptocurrency miners any differently. You must pay according to your marginal tax bracket.

Bitcoin miners and validators on Proof of Stake protocols earn digital tokens for authenticating transactions. These earnings are categorized as ordinary income, and they offer minimal tax savings.

Capital gains income manifests when you swap your digital assets for a higher monetary value than you acquired them. These income streams present significant tax benefits and holidays. For starters, long-term capital gains tax rates are diminished compared to short-term capital gains.

Moreover, you can completely offset capital gains with capital losses. However, capital gains can only offset ordinary income up to $3,000.

DeFi Taxes in Lending and Borrowing

The DeFi ecosystem offers lending opportunities like no other. Your digital currencies can earn interest on Compound, Blanancer, and Uniswap by contributing to liquidity pools or lending directly.

Some DeFi protocols take crypto loans and issue out Liquidity Pool Tokens in return. The currencies you loan out determine the number of tokens from the liquidity pool and ultimately how much interest you make.

Interests that you make on crypto lending platforms qualify as ordinary income for tax purposes. The DeFi ecosystem allows you to boost your revenues, with some platforms paying out interests every second.

The same applies to crypto borrowing platforms. You can borrow bitcoins and other digital tokens to use for business or personal use. Commercial cryptocurrency loans qualify for tax-deductible expenses. Therefore, you can claim relief on costs you incur when borrowing cryptocurrencies for commercial use. 

DeFi Taxes for Unexpected Income from Hard Forks and Token Distribution

Sometimes, blockchain networks award existing users or asset holders with free digital tokens. Such tokens are newly acquired assets with monetary value. Such a transaction is taxable, and the IRS categorizes it as regular income.

Therefore, you must report it within your appropriate tax brackets, and you won’t qualify for many deductions on these earnings. If you use such tokens profitably, file the revenue made on top separately.

Networks like Compound sometimes distribute their native tokens for free to users during initial offerings. For example, the DeFi platform distributed $100 worth of COMP. The users who enjoyed free $100-worth assets owed the IRS whatever your income rate is for that $100.

You won’t pay any more taxes if you hold the COMP, no matter how much they appreciate it. However, you will owe the day you redeem that appreciated monetary value, and you should report the net revenue as capital gains.

If the $100-worth of COMP appreciates to $300 within a year, you will owe short-term capital gains tax for $200 if you sell the COMP or redeem it for products and services. Your capital losses for the COMP are not deductible on the income tax you owe for unexpected digital income.

Cryptocurrency forks are other sources of unexpected digital income. Forks result when validators or miners in a network disagree on blockchain governance. A great example is that of Bitcoin and Bitcoin Cash. They disagreed, and the Fork was quite controversial because it created BTC tokens from scratch.

Investors of parent cryptocurrencies end up with an equal number of forked-off tokens. For example, if you had 4 BTC during the fork, you automatically got 4 BCH, and you became a member of two independent blockchains.

These unexpected incomes are also part of your taxable income, and you pay per your tax bracket. Any gains on them are taxable, and any losses on them are not tax-deductible.

DeFi Taxes in DEXs

Basic taxation rules for cryptocurrencies apply to DEXs. You do not incur taxation for transferring funds from one platform to another, so long as the accounts and funds are yours.

However, when DEXs allow cross-chain asset swaps, an element of profitability occurs. You either gain profits or losses on your initial capital assets.

Reporting DeFi Income on Your Taxes

It is your responsibility to report DEX revenue streams for tax purposes. The advantages of DeFi taxation are abundant. Report all DeFi buys and sells on the IRS Form 8949 for your capital gains filing.

Tax Advantages of DeFi

For starters, DeFi lending converts your currencies to Liquidity Pool Tokens. Your liquidity tokens remain the same, but their value increases over time. You make a capital gain when redeeming your LPTs for the original cryptocurrencies.

DeFi converts what should be your regular income into capital gains income. Consequently, you qualify for deductions if you make losses later selling the tokens.

DeFi allows you to borrow tokens with different cryptocurrencies acting as collateral in Ripple’s XRP for the long-run, but ETC is more profitable in the short-term.

Long-term capital gains offer more deductibles than short-term ones, and you shouldn’t keep selling your XRP to leverage ETH’s profitability. You can borrow ETH with XRP as the collateral if the prospective earnings are more than interest costs.

Tax Disadvantages of DeFi

Whenever you exchange a crypto asset for another, you are most likely triggering a taxable event. This makes it cumbersome to track all profits and losses made every time such DeFi transactions occur.

Tax Treatment Overview on Different Platforms

  • Uniswap

Uniswap executes the Liquidity Pool protocol for its crypto lenders. It empowers you to swap income tax liability for capital gains liability, which is deductible. UNI tokens basically cushion you from future losses on the native coin you want to lend.

  • Maker/Oasis

This DeFi service allows you to harness long-term tax deductions on capital gains. The platform allows you to trade between assets and even earn interest on other assets. They allow you to lock your ETH as collateral, and as it gathers capital gains, you can seize the short-term profitability of other blockchain networks.

  • Compound

Compound is also a Liquidity Pool platform, which converts your ETH to cETH. When the liquidity pool earns interest, the value on your cETH will move from income tax liability to capital gains revenue, deductible for losses.

  • Balancer

Balancer is another Liquidity Pool DeFi service. It’s sort of a tax-lien insurance package against future losses on crypto assets. 

Parting Shot

Ignorance cannot be your defense when you are found to be non-compliant. The DeFi markets are enormous and have the potential to overtake centralized finance in years to come. The IRS knows this fact, as do most sovereign central banks. 

Fortunately, DeFi taxes are friendly, and they offer numerous tax-saving opportunities. You stand to make tremendous capital gains and high, compounding interest rates investing in DeFi. The gains are way bigger than the tax costs. 

Enforcement over DeFi taxes will only get more aggressive, intuitive, and efficient. That’s why you need to read this article and share it with your friends. Take charge of your tax compliance, and share some of your most effective tax filing tips for DeFi transactions. 

Crypto Daily Topic Cryptocurrencies

How to Come Up With a Good Bitcoin Investment Strategy

Surprisingly, many people just buy Bitcoin and fumble with the investment until they make some profit. Investing in Bitcoin is actually a serious venture, and contrary to widespread practice, it needs a strategy! But what is an investment strategy anyway? What constitutes a good strategy? And, does it apply to all forms of Bitcoin investment?

These are the hard questions we seek to answer in this article. 

Is There a Right Way to Invest?

When investing in crypto or any other asset, you can gain or lose. The most successful investors are those who combine tactic, experience, and of course, luck. Since we cannot do anything about experience and luck, we are usually left with the tactic in the playground, and that’s where planning comes in. We’re not saying that there is a right or wrong way to invest. But, if you are really keen on maximizing your profits and keeping risks at bay, then planning for that journey is indispensable.

What is an Investment Strategy?

An investment strategy is a calculated approach that helps an investor make decisions to achieve specific goals. The investor could be seeking to multiply wealth. They could be seeking to protect whatever they already have. Regardless of the circumstances, an investment strategy must consider the investor’s goals, risk tolerance, and future capital needs. 

What Constitutes a Good Strategy?

Keeping in mind the above picture of what an investment strategy is, it is easy to figure out what a good one should be made of. Generally, you can consult the following checklist if you want to come up with a sound Bitcoin investment strategy.

  1. It contains your definition of risk tolerance – Risk is a central component of any investment strategy. Defining your risk tolerance helps you apply brakes when the train is accelerating in the wrong direction. It might sound trivial, but desperate decisions are never far from the mind when things get thick. 
  2. It identifies your goals – An investment strategy is nothing without goals. It should be clear from the start what you want to achieve from such an engagement. 
  3. It should be realistic – If it were that easy to make money, everyone would be rich. The excitement one gets when approaching an investment may mislead them to overshoot.
  4. It should aim at maximizing profits and minimizing risks – well, that’s the whole point of investing. 

This is by no means an exhaustive definition of a good investment. However, it is a fair guide on how to approach planning for your Bitcoin investment. With this background in mind, let us look at how you can develop an award-winning Bitcoin investment strategy.

Step #1 Identify the opportunity and the risk

If there is no opportunity, abort the mission. Diving straight into an investment without identifying whether there is a suitable opportunity sounds like gambling. After all, the whole purpose of venturing into investment is taking advantage of some opportunity. 

Spotting opportunities is not always easy, but sometimes it is. An example of opportunity in Bitcoin investment is the crypto’s rising value. This could be a short term opportunity or something that will outlive this generation (no one knows how long Bitcoin will sustain the uptrend). However you look at it, we must agree that identifying the opportunity is the basis of everything.

With opportunity comes risks. As mentioned earlier, risk is a core part of any investment strategy. The opportunity might be huge, but so could be the risk. If there is reason to believe that the current Bitcoin boom is a fad, the risk associated with investing all your savings would be catastrophic. The bottom line is, you should identify how much risk the opportunity presents and how much of it are you willing to tolerate.

Step #2 Decide how much and for how long

The amount of money you should invest and for how long are crucial parameters. Of course, you’re not planning to hold Bitcoin until you die. But if that is your intention, it should be clear from the onset. Holding assets indefinitely and without a plan defies the purpose of accumulating wealth.

However, this is not a rule cast in stone. For instance, if you plan to protect your wealth, you might want to convert a huge chunk of your dollar savings to Bitcoin, and short time fluctuations will not be a bother because profits will average out over time. 

Step #3 Invest – a plan without action is pointless.

Now that you have a clear goal and an understanding of the opportunities and risks, it is time to invest. Depending on your goals, you may find one investment approach more suitable than others. Typical options for investing in Bitcoin include:

  • Trading – With trading, you can either go for spot trading or derivatives trading. With spot trading, you simply buy Bitcoin when you think it is trading at a low price and sell when you believe the price has gone high enough. Without concrete investment goals, it is difficult to remain disciplined when spot trading as periods of explosive uptrends and epic falls might send you into euphoric buying/ panic selling episodes, respectively.
  • HODLing – This is where you buy Bitcoin and keep it with no intention of using the asset in the short run. This approach may be more suitable if you plan to protect your wealth or diversify your investment portfolio. Wealth stored in Bitcoin can be readily liquidated and converted to fiat money. You can also use such investments to acquire crypto loans. 

Step #4 Monitor your investment

An investment is like a seed – once sowed, the growth journey has only begun. Keeping an eye on your investment helps you to determine whether your strategy needs editing. If you believe you made mistakes in your original plan, there is no shame in revising it until you feel you have gotten it right. It is important to practice emotional control while observing how events unfold during the course of the growth of your wealth. You should also stay updated and keep learning, as that’s the only way to align your strategy with the reality of the market. 

Final Thoughts

Investing in Bitcoin is not complicated, but without planning for it, the chances of going nowhere with your investment are high. A good investment strategy, we have seen, needs to define your goals, your risk tolerance, be realistic, and focus on maximizing profits while keeping risks under control. There is no right or wrong way to invest, but that does not mean a planless investment is also acceptable. Similarly, the four-step approach described above is not the only sound methodology. However, it captures most of the crucial elements that will help your Bitcoin strategy stand out. Feel free to play around with it!

Crypto Daily Topic Cryptocurrencies

Now You can Earn Interest on Your Idle Crypto Assets with Nexo

Apart from HODLing and spending, many crypto users have no idea what to do with their crypto assets. Nexo, a leading financial institution for digital assets, provides crypto users with the opportunity to earn interest on their idle crypto assets. Overall, the concept is simple – you entrust your assets with Nexo, they invest them primarily through lending, and you share the returns. It works almost like a traditional investment bank; only that crypto is the main asset here.

Naturally, many questions will emerge regarding the profitability of Nexo’s offerings, its security, usability, and much more – investors are an inquisitive lot. This article will answer some of the most pertinent ones if only that will give you the confidence to join the league of passive investors. 

What Is Nexo?

Before we rush into how to invest with Nexo, let us first understand what it is. Simply put, Nexo is (arguably) the world’s leader in the provision of digital banking services. The company has strived to bring traditional banking to the world of crypto by merging fintech with blockchain. Nexo specializes in providing lending facilities in the DeFi space. According to the company, $5 billion worth of digital loans have been processed on the platform since its establishment in 2018. The company enjoys a user base of over 1 million and is available in nearly every corner of the planet. 

How Do You Earn?

Nexo offers a variety of crypto financial services, with lending at the top of the list. To earn, you need to deposit supported digital assets (both fiat and crypto) to your Nexo account. The following steps should help with the process:

  1. Register for an account on 
  2. Enable 2-factor authentication (this is mandatory)
  3. Scroll down until you find a list of supported crypto assets and select ‘Top Up’ on the one you wish to invest in. Besides the token, you will see how much interest you can earn from each one and what options there are for maximizing your interest.
  4. Nexo will generate a deposit address and a QR code. You can either copy the address or scan the code. It is extremely important to double-check this address before depositing since Nexo puts a disclaimer for funds sent to the wrong address. You can also top up your Nexo account directly from an exchange. If you are depositing BTC, your transaction will appear after 6 nodes have confirmed the transfer. For ETH and other ERC-20 tokens, 50 is the required number of confirmations. 
  5. You can follow the progress of your deposits on the transactions page/ tab.
  6. Interest is earned when you withdraw from your available credit line. The withdraw button is conveniently placed next to the deposit button. 

The steps may look numerous, but really, the entire process can be summarized as ‘top up supported assets and start earning automatically.’ In other words, once you deposit, no other effort is required from you – that’s the true spirit of passive earning. 

Which Digital Assets Can You Invest?

Nexo supports the following digital assets:

  • Bitcoin
  • Ether
  • Litecoin
  • Bitcoin Cash
  • Nexo Token
  • XRP (Ripple)
  • Tether
  • USD Coin
  • Dai
  • Euro
  • GBP
  • Several others

Is Nexo a Good Investment?

As an investor, you have the choice to bid your assets in a portfolio of your choice. So, what would make you choose Nexo first? The following factors might:

  • You can earn up to 12% interest on stablecoins. Interest earned depends on the asset you have deposited and the method you choose for payout. Earning in Nexo for selected stablecoins attracts the full 12% interest.
  • While interest is calculated on an annual percentage rate (APR), payouts are made daily. So you don’t have to wait for end-year dividends like most investments.
  • You can deposit or withdraw funds at any time of your liking.
  • Your deposited assets are backed by a $100 million insurance secured with BitGo.
  • There are no minimum contribution thresholds and no fees charged for funding or withdrawing from your wallet.

Are There Any Risks?

Any keen investor would be worried about the safety of their investment, especially if their assets will be used to extend credit to others. With Nexo, this is not a matter of great concern as your assets and those of others are backed by a $100 million insurance at BitGo. Deposits are also stored in multisig cold storage wallets so you can rest easy as your money works for you. 

Additionally, borrowers have a limit based on their deposited crypto assets. Nexo uses a complex formula to dynamically calculate credit limits based on the dynamic value of digital assets. So, Nexo is unlikely to run out of cash due to overborrowing. 

Lastly, while this is not a risk per se, it is worth noting that first time users may find the platform a little cumbersome to use. The website has only scanty information about what you need to do to get started, and you are likely to fumble around looking for where to click next. Clearly, the platform has not been customised for the crypto investor who’s just starting out. 

Reputation and Regulation 

Nexo boasts of a good reputation among users of crypto financial services. On TrustPilot, a leading consumer review website, 90% of users have ranked it ‘excellent,’ with a score of 4.8/5. The company is also licenced and regulated by the European Central Bank, besides being certified as ISO/IEC 27001:2013 compliant. With such credentials, you can be assured that you will be dealing with a legitimate and tried, and trusted platform. 

But What’s The Catch?

For those who are still not convinced about the viability of Nexo’s business model, questions on where’s the catch will linger. The way this financial institution operates is quite similar to traditional banks – users deposit their assets (usually dollars, euro, etc.), which gives the banks the capital to finance credit and other investments. The only difference is that Nexo cannot rely on traditional loan recovery techniques in case a borrower defaults. Therefore, the company depends on a user’s deposited assets as collateral. You can deposit multiple assets to maintain a positive loan-to-value ratio. This ratio is an indicator of your ability to settle the debt. If you default, Nexo will automatically initiate a sale of your deposited assets until the desired balance is achieved. 

Final Thoughts

‘Earn passively from your idle crypto assets’ sounds just as cool as it is, especially when using Nexo. The platform allows you to deposit a variety of crypto assets and earn up to 12% interest. Interestingly, all you need to do is deposit funds to your Nexo wallet, just as you would do with a crypto exchange. Nexo’s investment terms are quite friendly. For instance, there are no minimum deposits, you can deposit or withdraw at any time, payouts are done daily, and so on. Additionally, the platform ensures the security of your funds is guaranteed by implementing 2-factor authentication for deposits and withdrawals, insuring depositors’ funds, and storing them in multisig cold storage wallets. The only downside with Nexo is the limited information on the website, which might leave new investors struggling to get started. 

Crypto Daily Topic Cryptocurrencies

Earn Passively with VeriBlock’s Latest Tech: Proof of Proof

Innovations in the cryptosphere are fast and wild. Recently, VeriBlock released the novel proof-of-proof protocol, which allows blockchains to inherit Bitcoin’s security. The organization’s unique technology solves two problems simultaneously. First, a diverse ecosystem of blockchains – each focused on addressing a unique need – is secured. Secondly, gains made from the increased adoption of these alternate blockchains will drive more transactions out of the Bitcoin network, thereby increasing Bitcoin’s scalability, and by extension, solving the pioneer blockchain’s major headache.

While this technology is expected to transform Bitcoin and the entire crypto universe, the best part is that you can take part in the revolution and earn passively. 

In this article, we will look closely at this interesting concept and discuss the opportunity in it.

What Is Proof-of-Proof (PoP)?

At the core of it, PoP is a form of mining. VeriBlock envisioned an ecosystem of blockchains – each addressing diverse problems – but with the full security of Bitcoin. But why Bitcoin? You may ask. 

Currently, Bitcoin is the largest cryptocurrency network and is rightfully considered the golden standard of security. Attacking the network would require massive investment in specialized computational infrastructure, all thanks to the high number of nodes in the network paired with its consensus algorithm. It is argued that to stage a 51% attack against Bitcoin, even the world’s fastest supercomputer would be of no use. Smaller blockchains have had to endure this vulnerability for years, but not anymore.

Simply put, VeriBlock’s PoP scheme will allow participating blockchains to use Bitcoin for a second-layer of consensus. So, first, they do their own proof-of-work consensus then push the transactions to Bitcoin through VeriBlock’s blockchain. 

The VeriBlock ecosystem acts as an aggregation layer between alternative blockchains and Bitcoin. Whenever a new blockchain joins this ecosystem, VeriBlock becomes even more decentralized and more secure due to the increased network effect. 

What’s The Deal?

For VeriBlock’s technology to work, PoP miners are needed, and that’s where you come in. As discussed above, the technology works by having transactions mined in their original blockchains then published to Bitcoin in a decentralized, trustless, transparent, and permissionless (DTTP) manner. Hence, your work as a PoP miner will be pushing blockchains, which already have intermediate consensus, to Bitcoin to receive the final security seal. The backend mechanics are complex, but the user’s role is suitable for a layperson.

With VeriBlock’s PoP, everyone stands to benefit. We have seen that PoP miners get their commissions by pushing transactions to the second layer of verification. On the other hand, innovators working on alternative blockchains will see their projects boosted as users become more confident in adopting these blockchains. The thing is, it is easier for developers to build applications on alternative blockchains where speed and scalability are non-issues. But security remains a challenge for such networks. Therefore, it is easy to understand why the whole crypto community should rejoice at the release of this invention.

How Do You Earn?

Unquestionably, VeriBlock’s PoP technology is too complex to be discussed here, but luckily, you do not need to understand the intricacies to participate and earn.

Send Bitcoin, get paid! Earning with VeriBlock’s PoP is that simple. The company has partnered with ZelCore to make this dream a reality. From December 2020, ZelCore users can earn $VBK by sending Bitcoin from their wallets. On the updated wallets, users will find $VBK alongside BTC, BCH, LTC, and other major cryptos. 

For the earning part, all you really need to do is update your ZelCore wallet to get the new feature. Any time you send Bitcoin from your ZelCore wallet, you will be taking part in VeriBlock’s second layer of consensus and getting paid for the hard work. Again, for emphasis, you do not need to do any manual validations – sending BTC is sufficient to earn you rewards.

In the bag of goodies, we also had some 1.5 million $VBK, which was to be shared among the first 15,000 users to upgrade their wallets by December 21. If you did upgrade before then, kudos! If not, your second chance is to earn by sending BTC from your ZelCore wallet.

Rewards are earned in VeriBlock coins ($VBK), which can be converted to other major cryptocurrencies. The conversion is expected to be smooth as $VBK is already listed as an asset in the updated wallet. Paying out earnings through $VBK was necessary because that’s the network that performs the final consensus, which is understandably confusing as Bitcoin would be expected to be doing this task. 

Which Wallets Are Supported?

At the moment, you can only participate in this passive earning scheme if you are using the ZelCore wallet. Some consider this a disadvantage given that the wallet is not open-source, and for being a commercial wallet, users are charged monthly maintenance fees to use some features. Nonetheless, the developers have tried to compensate for this by offering highly reliable customer support and unmatched user experience. 

About the ZelCore Wallet

ZelCore is a multi-asset crypto commercial wallet that supports over 170 digital assets. It integrates the services of a number of major exchanges, including Changelly, InstaSwap, Coinswitch, and Kyber, so you have it all under one roof. The application, which is available for both mobile and desktop devices, offers beautiful interfaces, best-in-class security, including two-factor authentication, great usability, and seamless integration of new features, which the company promises to roll out continuously. 

Why Should You Participate in VeriBlock’s PoP?

First, to earn passively. VeriBlock’s PoP gives ordinary Bitcoin users – those without any special mining equipment – the opportunity to earn from mining. This idea is not only novel but exciting too. It is not often that you can make money by almost investing nothing. Also, mining has, hitherto, been a reserve of those with the financial muscle to invest what it takes to set up the specialized infrastructure.

Secondly, your participation in VeriBlock’s PoP scheme will be for the greater good of the cryptoverse. The growth of alternate blockchains has been hampered significantly by security issues related to the 51% attack. It has been difficult for merchants and exchanges to list tokens from alternate blockchains when the risk of double-spend stares at them. Thus, when you take part in proof-of-proof validations, you are helping alternate blockchains to grow.

Final Thoughts

Earning passively is one of the easiest and effortless ways to earn from crypto. With VeriBlock’s proof-of-proof invention, ordinary Bitcoin users can make extra money by validating transactions. Participating is easy – one only needs to download a ZelCore wallet (or update it for existing users) and start sending BTC from the wallet. There is a slight limitation in the use of the ZelCore wallet as it is a commercial product. Nonetheless, its usability, security, customer support, and its wide variety of features make it worth the trouble. VeriBlock may extend the technology to other wallets, but as to which ones and when, that remains a matter of conjecture. Overall, we may point out a few areas of improvement for VeriBlock’s PoP earning scheme. Still, we must also agree that this is a noteworthy opportunity for Bitcoin users to earn effortlessly.

Crypto Daily Topic Cryptocurrencies

What Is It Like Investing in Tezos (XTZ)?

Smart contract safety, long-term upgradability, and open participation: these are the problems Tezos promised to solve when it was created in 2018. So, the developers built the network to facilitate peer-to-peer transactions and launch smart contracts. Behind the network sits the Tez (also called Tezzie) digital token, which is the focus of this article. 

If you are familiar with Ethereum smart contracts, you might already understand Tezos’ offering. However, the slight difference between smart contracts on these two networks is that Tezos allows participants to directly control the network’s rules. This makes Tezos not just a re-invention of the Ethereum wheel but a rather more flexible and scalable platform for implementing smart contracts. 

Tez can be considered a major crypto. By market capitalization, it ranked #19 at the time of writing. It’s availability in multiple exchange pairs and listing on major exchanges indicates that it is a popular asset among investors. 

This article will look at what it is like investing in Tez and answer questions such as is it a good investment.

What is Unique about Tezos?

One of the things that make Tezos unique is its proof-of-stake consensus. Unlike Bitcoin, consensus on the Tezos network is achieved by stakers, whose mining power depends on how much Tez they hold. Relying on this consensus mechanism might have given the crypto some resilience against the cryptocurrency bear market of 2019. Between October 2019 and February 2020, the crypto recorded triple growth. This is a remarkable movement – at the time of writing this, even Bitcoin, in its current biggest bull run yet, has not attained triple growth.

Performance in 2020

Tezos is known for euphoric investment. During its ICO launch, it raised $232 million, one of the biggest ICOs at the time. Well, in 2020, the crypto has shown similar tendencies – fluctuating between less than a dollar and $4. Such volatility has only been shown by a few cryptocurrencies. Again, we must acknowledge how large these fluctuations are. Despite the relatively low price, the percentage changes are tremendous. 

Tez was trading at roughly $1.3 at the beginning of 2020. By mid-February, it had rallied to trade at $3.7. Prices soon crashed to lows of $1.3 a month later. Between April and July, Tez demonstrated rare stability exchanging at about $2 and only fluctuating slightly. In August, the crypto experienced its largest spike of the year, and at some point, fetched a whopping $4.2 at exchanges. The prices have since dropped to $2, which so far seems like its point of equilibrium.

24-hour trading volumes for the crypto indicate drastic changes in investor activity. There was only 30 million worth of trade per day as the year opened, but by mid-February, this number had increased 10-fold. By mid-August, the volume was 20 times. Even when the prices dropped to the $1.3 figure witnessed at the start of the year, 24-hour trading volumes never declined below $70 million. 

The volume of trading exhibited by Tez shows how enthusiastic investors have been with this crypto. Coupled with its relatively high volatility, we can conclude that Tez has been the perfect asset for short-term trading, at least according to investors’ 2020 trading patterns. 

The Future of Tezos

We have seen that, due to its volatility and high trading volume, Tez performs impressively in the short term. For investors who seek to grow their investment in the long term, questions on Tez’s suitability still persist. 

Tezos had a promising start right from its introduction to the initial coin offering. As earlier mentioned, the crypto raised one of the highest amounts ever raised in a cryptocurrency ICO. The faith investors have placed on the crypto from the start indicates its potential and guarantees some level of support for its growth.

Tez has also shown tremendous resilience in the past. After the successful ICO, legal disputes delayed its launch for almost a year. Even so, when it finally launched in 2018, investors had not lost faith in the project – which can be proven by how fast it rallied to reach triple gains. Tezos’ market rank is another indicator of its resilience and aggressive growth. For a crypto that is only 2 years in the market, claiming a position among the top 20 cryptocurrencies is no mean feat.

These past indicators describe a crypto with a solid foundation, good reputation, and the community support needed for future growth.

Adoption in The Banking Sector

The network’s flexibility and scalability also imply that we will see new use cases regularly. In 2019, barely a year after Tezos was launched, BTG Pactual and Dalma Capital (both are reputable investment banks) announced that they will be using the Tezos blockchain for security token offerings (STO).

Tezos adoption in the banking sector is also likely to increase, particularly due to its security. Least Authority, an esteemed security auditing company, released a report affirming that ‘Tezos protects against chain reorganizations and selfish baking.’ Such approvals will go a long way in promoting the crypto’s adoption in the financial sector. 

Stability and Reliability

Tezos’ designers spent a lot of thought on the network’s stability. Unlike most crypto, Tezos has an advanced infrastructure that is not prone to hard forks. Users can vote on proposals to upgrade the protocol on the main blockchain. Through a process known as baking, users stake an amount of XTZ to participate in the voting process. Changes to the protocol become effective only after they have been backed by a super majority. This form of governance ensures the network is ‘built to last.’ As an investor, you will be protected from the uncertainty that comes with hard forks and the subsequent possibility of making a loss on your investment.

Is it Risky Investing in Tezos?

Cryptocurrencies are inherently risky investments. Tezos appears as a stable, secure, and well-governed blockchain. However, the currency faces the same volatility and speculation that all other cryptos face. No matter how lucrative Tezos might appear, the golden rule remains, never risk more than you can afford to lose.

Final Thoughts

Investing in Tezos can be an exciting experience – you can quickly gain or lose, and by high margins. The currency’s relatively high volatility makes it a particularly suitable asset for short term investment. In the long term, Tezos looks equally promising. It is secure, stable, and reliable. These characteristics position the crypto strategically for widespread adoption in the mainstream financial sector. The network’s immunity against hard forking is a guarantee of stability against hard fork uncertainties. While Tezos is a good investment, it is still risky due to the virtue of being a cryptocurrency. Therefore, it is best to exercise caution and avoid hype when making the decision to invest in Tezzie. 

Crypto Daily Topic Cryptocurrencies

How to Take Advantage of Ethereum 2.0

Ethereum, the decentralized blockchain that features smart contracts, will be getting a series of upgrades that will see improved scalability, security, and sustainability. This massive upgrade will create new opportunities for investors. Apart from allowing Ethereum users to earn passively from staking, smart investors can take advantage of price changes during the launch of Ethereum 2.0 and multiply their investments. 

In this article, we will look at what is Ethereum 2.0, what investment opportunities it creates, and how you can be part of this development.

What is Etherum 2.0 All About?

Also known as Eth2, Ethereum 2.0 is fundamentally a shift from the current proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) model. In the PoW model, the generation of new blocks relies on the computing power of each node on the network that is taking part in transaction validation. On the other hand, PoS relies on virtual miners (also called validators) and Ether deposits to achieve consensus. 

Besides changing the consensus mechanism, Eth2 also introduces shard chains – a mechanism that ‘splits’ the Ethereum blockchain and shares the processing task among different nodes. This approach increases the network’s processing capability by allowing concurrent processing of transactions – a shift from the traditional sequential processing. 

While the upgrade is squarely technical, its economic and financial implications will be far-reaching. 

How Will Eth 2.0 Affect Prices?

Whenever a major event happens on certain crypto, its prices are bound to change due to increased speculation. In the wake of the anticipated Eth2 launch, upward price movements were observed. The launch was set to happen on 1st December, and a week to this launch, ETH prices had gone as high as $600. While this rally might have been due to other factors, such as the general positive sentiment on cryptocurrencies, the surge observed just a week before the event can’t be coincidental. 

Speculation aside, Eth2 is bringing improved transaction speeds and lower costs – factors likely to increase demand for the crypto. Already, exchanges are reporting declined sell pressure, which indicates that investors are not eager to sell ETH at the moment. The speed and transaction cost improvements will also automatically cascade to tokens that run on the Ethereum blockchain. This will trigger even more demand for the crypto and, thus, better prices. 

Staking in Eth 2.0

The introduction of staking in Eth2 creates a new opportunity for investors to earn by validating transactions, and this is the latest investment opportunity we would like to discuss. 

Simply put, staking in Eth2 implies depositing 32 ETH to activate validator software – the tool you will be using to process transactions. As a validator, you will have the power (and duty) to process transactions and add new blocks to the blockchain, and earn rewards while at it.

Rewards are given to validators for pushing transaction batches into new blocks and validating other validators’ work. While there are bountiful rewards in staking, you might lose ETH if you are unavailable to perform validations or if you use your stake against Eth2 validation specifications. 

How to Stake in Eth 2.0

Staking involves sending 32 ETH to the following address: 


However, you will need to use the launchpad dedicated for this purpose. The address above is for verification purposes only. The process involves several distinct steps, summarized as follows:

  1. Review Eth2 staking agreement/ terms and conditions
    1. Sign up on the launchpad. This will involve depositing the 32 ETH.
    2. Agree that it is your responsibility to keep your validator online.
    3. Agree that you are liable to slashing (incurring a large penalty) if you act against validation specifications.
    4. Agree that you understand that your mnemonic (or seed) is the only way to access your funds and that you will keep it safe.
    5. Agree to safeguard your key stores, which will hold your keys, and provide the public keys to the launchpad site to activate your validator.
    6. Agree that you cannot transfer your staked ETH until Phase 1 and that you cannot withdraw until Phase 2.
    7. Agree that once you exit, you cannot rejoin as staking is a long-term commitment. (The completion of each phase depends on reaching a certain amount of staked ETH. Thus, withdrawals will keep extending timelines for this smart contract).
    8. Accept early adoption risks, i.e., software and design flaws that may result in the loss of your ETH.
    9. Agree that you are technically capable of configuring a validator.
  2. Select an Eth1 client that will run parallel to your Eth2 client. This is necessary to process deposit transactions coming from the Eth1 chain.
  3. Select an Eth2 client and set up a node. You can choose between Prysm, Nimbus, Lighthouse, and Teku. Nimbus is one of the most versatile as it can run even on older smartphones.
  4. Select the number of validators you would like to run and the operating system you will use. Remember, to operate each validator, you will need 64 ETH.
  5. Upload the validator which you downloaded/ built from the previous step.
  6. Finally, connect your wallet.

While staking in Eth2 is quite technical, especially for the average user, a comprehensive step-by-step guide is provided on the Ethereum launchpad website. It is also worth acknowledging the thoroughness with which the documentation was put together by the Eth2 team to guide potential validators. If you use this guide, you are unlikely to get stuck simply due to technical difficulty. 

Is Eth 2.0 Staking a Good Idea?

Staking in Eth2 is a double-edged sword – it comes with both benefits and risks. When you commit your ETH to the staking contract, you are almost guaranteed returns just from staking. However, returns are highly variable. In fact, it is impossible to tell how much you can earn by staking a fixed amount of ETH until you actually receive the reward. Even so, if you stake and consistently participate in validation, you will get rewarded. 

Secondly, staking means locking your ETH to the network for some time, without the possibility of withdrawing it at least until Phase 1.5. This is akin to depositing with a fixed account, whose interest can be compared to the growth of ETH in the near future. 

While staking is a good way to earn from Eth2, you might want to consider the following risks:

  • Staking is a one-way deposit. ETH you send to the contract address cannot be withdrawn until an unknown future date (this is until Phase 1.5 of the upgrade is reached).
  • Profits you earn from staking also remain staked until this unknown future date.
  • Validation is a responsibility that all stakers must undertake. By being offline, you will lose as much as you would have earned if you were available for validation.

Final Thoughts

The coming of Eth2 brings with it exciting investment opportunities. Other than the traditional trading and HODLing, Eth2 allows you to commit some funds to the network and join other validators and earn exclusive rewards from it. Risks, including early-adoption software bugs and slashing due to being offline, exist. However, all considered, staking is a worthy venture that ETH investors should consider. 


9 Signs Your Crypto Investment Is About To Go Down

Crypto investments are inherently risky. At some point in the course of your journey, you will undoubtedly lose (part) of your investment. You could be contemplating investing, or you might actually be deep into the game. Whichever the case, losing your investment can be traumatic to the extent that you might want to avoid crypto altogether. 

You could lose your investment out of a lack of understanding the trade, or someone just fleeced you. After all, crypto is not for everyone. But wait! Even seasoned investors once in a while incur losses. The question is, are there warning signs you can watch out for and jump out before it’s too late or wait until the time is ripe?

This article looks at signs that tell you to avoid that crypto investment or abandon it if you had already taken the journey. 

#1 You’re not really enthusiastic about crypto

Many a time, people rush into crypto because they hear it is lucrative. There is no doubt that investors have made big cash out of crypto investments. But, if you are only interested in multiplying your money, you might find yourself making very unwise decisions. Additionally, if you are not enthusiastic about crypto, chances are you will struggle to understand market dynamics and how to take advantage of the seasons. 

#2 You don’t understand the technology

Almost anyone can buy and sell cryptocurrency. In essence, you do not need to be a geek to invest in cryptocurrency. But there is one little rule in investment: you should invest in a sector you understand – this is controversial, but think of it this way: Would you rather bid your money on a project you have no idea of or one in which you’re a professional? 

A cryptocurrency is a form of technology, and if you are not good at tech, don’t be surprised if you find yourself struggling to catch up with technological changes that directly affect your investment. You should consider this your cue to take a break from crypto investment until you are familiar with the technology. 

#3 You are not updated with news and events

Events in the cryptocurrency space unravel so fast that, as an investor, you cannot afford to be outdated. Due to the speculative nature of these markets, news and events have a major influence on prices. Thus, if you hardly follow the news, you are likely to miss out on your cues to exit a market. Of course, you also need to be able to interpret the news – they sure won’t announce that it is time to exit. 

#4 You are not patient

This is not just for crypto. For any sort of investment, you need to be patient, especially to give you time to think twice. Hype, FOMO, and peer pressure can rush you into investing even when you have not thoroughly analyzed an investment.

There is no substitute for due diligence. As such, if you are not patient enough to double-check that enticing crypto investment proposal, you are already a potential victim of loss. Regardless of the kind of crypto investment in question – an ICO, DAICO, trading, staking…you name it – time and patience are absolutely necessary inputs for the avoidance of unnecessary losses. And if you lack these elements, it is a sign that you are unlikely to succeed in crypto investment. 

#5 You easily buy into the buzz

Arguably, the hype is the biggest commodity traded in the money markets. It’s even bigger in crypto trading, which has been branded as revolutionary, more advanced, and cut out for the discerning investor.

The hype has misled many into thinking that certain investments are paying off handsomely, only to realize later that it’s not all true. A good investment must be well thought out – the timelines, the bid, the risks, and all. Some people just can’t resist the hype. Should you be one of them, your crypto investments are at a greater risk of going down.

#6 You are a panic seller

Crypto is, by nature, highly volatile. Sometimes, a cryptocurrency can gain/lose 20% but then correct the trend within hours. Such temporary spikes are a norm in the markets. If you have a tendency to panic-sell, the chances are that you will sell your assets when the prices have temporarily crashed, and you will have lost the difference. It is best to differentiate normal fluctuations from sustained trends. 

#7 You’re only investing in high-risk portfolios

In the money markets, high risks are associated with high returns, and the converse is true. There are people who appear to specialize in taking high-risk investments only. You could say one’s investment strategy is their choice, but to be honest, these are the kind of investments that, when they go down, fall hard. 

If you find yourself choosing high-risk portfolios all the time, it is best to re-evaluate your strategy. With due respect to diverse investment styles, a good portfolio should balance both high and low-risk investments. 

#8 You don’t like the idea of losing money

Not that anyone does, but investing in crypto is a two-way traffic – you can gain, you can lose. When investing in crypto, you should come to terms with the possibility of losing money. It is generally important to be open-minded to avoid panic-selling or making some other rash decision. If you find yourself struggling to accept the loss of your investment, check again that you are not vulnerable to making hasty decisions to ‘avoid further loss’ as this could be counterproductive and lead to even further losses.

#9 You have no idea what is going on

This sounds related to being updated and understanding tech, but it goes even further. Crypto investment is diverse. You will hear of ICOs, staking, crypto loans, and other jargon not found in regular conversations. You can imagine what it would be like investing in an ICO and receiving a bunch of useless tokens just because there was an offer for ‘early-bird investors.’ The thing is, you should familiarize yourself with what is what, so you know exactly what you are engaging in. 

Final Thoughts

Investing in crypto is a risky journey. Despite the fact that you can reap big profits from the venture, the possibility of loss always exists. As some of these losses are avoidable, you should watch out for the signs above to help you know when and if to take the risk. Anyway, there is no right or wrong investment approach – take this only as a guideline to avoid unnecessary losses to your crypto investments. 

Crypto Daily Topic

What is coin burning all about?

The crypto adoption juggernaut rolls full steam ahead. You need only look at the increasing number of outlets accepting crypto payments to prove this. Even governments that once approached them with cynicism have caught on to the act. The big migration to CBDCs is now a matter of time.

Whereas the growing acceptance is positive, it comes with its misgivings. Although the proliferation of coins and tokens expands choices, it raises concern about sustaining cryptos’ value within the cryptosphere.

Cryptos are good at mitigating inflation, but they’re not immune to it. Crypto projects have had to devise the means of controlling this. As such, coin burns have been the tool of choice. But what are coin burns? How does one execute them? Importantly what is their value? Stick around as we go deep into the subject. 

What Is Coin Burning?

Coin burning is the process of removing a set volume of cryptos from circulation.  In doing so, developers and miners reduce their total supply. 

Eater Addresses/ Blackholes

Coin burning entails sending cryptos to public addresses with unobtainable private keys. Also known as eater addresses or blackholes, these addresses render the coins useless. Nevertheless, they allow for their public viewing and peer verification on the blockchain.

Coin Burning Varies With The Project

Depending on the frequency of the coin burning process, we can classify it into two broad categories:

  • One time burns – are one-off coin burns popularly embraced by  ICO projects to clean the market of unsold coins.
  • Periodic Burns- these are undertaken repeatedly at either fixed or varying intervals; Binance holds quarterly coin burns while Tether does so per withdrawal or collection

What are The Approaches to Coin Burning?

There are two major approaches to coin burning. These are:

  • Mechanisms relating to the token’s blockchain protocol
  • Mechanisms driven by economic sense

Protocol Related Mechanisms

In this category, we have coin burning mechanisms embedded in the project’s core protocol layer. We may divide these into two main groups.

  • Proof of Burn Mechanisms
  • Anti Spam mechanisms
i) Proof of Burn Mechanisms

These use the  Proof of Burn (PoB) consensus that requires miners to prove that they’ve burnt some of their coins. PoB has several variants:

  • Burning Native Coins for Mining Rights- miners must burn some of their coins to acquire block mining rights;  an example is Slimcoin.
  • Burning Bitcoins to Create New Native Coins- projects like  Counterparty (XCP) use PoB that burns BTC in exchange for a similar value of coins in the native currency, XCP
  • Burn-And-Mint Equilibrium: an advanced version of PoB used by  Factom (FCT) that burns native tokens in return for Entry Credits for storing data on its blockchain
ii) Anti Spamming Mechanisms

Introducing a cost to transactions prevents spamming and DDOS attacks that compromise the network. Projects like  Ripple (XRP) and Request Network (REQ) integrate a burning mechanism for every transaction on their network. Though indirectly, their Users ‘incur’ the cost of trading on them. The ecosystem gains in value resulting from a reduced supply of native coins. 

Mechanisms Driven By Economic Sense

These are mechanisms informed by a project’s economic considerations. They may be one-offs or periodic.

i) Mopping up of The Unsold ICO Tokens

At times ICOs fail to meet their hardcaps. Consequently, remain with unsold tokens. The projects may decide to destroy these to maintain their credibility.

ii) Paying out Dividends to the Coin Holders

Profitable projects may use their profits in buying back their native coins from the public. They then destroy the repurchased coins, thus paying them some dividend, which increases the value to coin holders.

What are the Steps Followed in a Coin Burning Event?

The coin burning event follows a sequence of four steps. Here’s its breakdown:

  • Institution of the burn function- the coin holder starts by calling the burn function, indicating the number of coins they intend to burn.
  • Verification of the coins  for burning- The contract proceeds to determine the ownership and validity of the selected coins, considers positive numbers only
  • Abortion of the burn function- The process aborts if the instigator has fewer coins or uses a negative value or zero.
  • Execution of the Burn function- the smart contract withdraws  the sums from the instigator’s wallet, permanently cutting them from circulation 

Why do Crypto Project’s Institute Coin Burns?

You’d think that coin burning is beneficial. Wouldn’t you? After all, you have Key players like Binance and Tether performing them. What then are its benefits

i) Appreciation in the Crypto’s Value

Cryptos are decentralized. In essence, market forces determine their prices. Coin burning depletes the sum of coins serving the market. As a result, their value rises to attain equilibrium. The attainment of market equilibrium is essential in stabilizing the price(value) of the crypto.

ii) Ensuring Network Stability

As stated elsewhere in this article, coin burning is key to eliminating Spam and DDOS. Accordingly, the network becomes stable.

iii) To Mop Up The Unsold Tokens From an ICO or Token sale

Crypto projects initiate ICOs to get public buy-in. Towards these, they set aside a certain percentage of the coins hoping that the investors will acquire the whole lot. However, things don’t always go that way, resulting in a remnant of those coins.

iv) Winning Investors’ Trust

The token insurer burns the coins remaining unsold from the ICO. They do this to ensure a level playing field for all investors. Were the issuer to keep the unsold coins, they’d have a massive advantage over other investors. Coin burning helps win the trust of other investors and incentivizes their stay within the project. 

A case in point is the Neblio cryptocurrency. Its team burned 122 million tokens that remained from their ICO. It sent them to an unspendable NEBL address.

v) Correcting Errors in Coin Issuance

At times projects realize errors in the creation of their tokens or coins. As such, they turn to coin burns to remedy this situation. A case in mind is Tether. The company realized that it had erroneously produced $ 5 Billion USDT. It resorted to a coin burn to maintain its 1:1 peg to the USD. Allowing the extra coins to stand would have destabilized the ratio.

vi) Guaranteeing The Developers’ Commitment to the Project

Coin burning signals the Developers’ commitment to the project. Look at it this way: the coin burn reduces their supply. At the same time, it increases the value of the coin or token in question. Burning is indicative of the developers’ desire to see the project grow in value and network function.

vii) Reduction of The Competition Between Miners

The Proof of Burn (PoW)  consensus is a popular offshoot of coin burning. Through it, a user destroys their coins to gain mining rights.

Managing Mining

PoB matches the number of blocks a miner can verify to the volume of coins they burn. This way, one’s mining ability increases with increased burning. Thus it reduces the number of miners and competition for resources between them.

Leveling the Playing Field Through Decay Rates

Since PoB favors the large-scale miner, they employ decay rates. This feature reduces one’s mining capacity with every verification. For them to remain profitable, it compels them to invest in more tokens to burn.

Final Thoughts

Although touted as the fix against inflation, cryptos aren’t immune to the same. Consequently, projects have had to find ways of guarding against it. Their default method has been the institution of coin burning: the deliberate removal of a given amount of coins from the market. It may be a one-off event or a periodic undertaking. Additionally, it could be a procedure hardwired into the project’s core protocol layer or driven by economic consideration. Whatever the cause, coin burning is an essential undertaking that, among other positives, infuses stability and confidence in any crypto project.

Crypto Daily Topic Cryptocurrencies

How Does Ripple (XRP) Fare against the Rising Stablecoins?

Ripple Labs was poised to overtake the bitcoin network because of its fast speeds and cost-effective transaction framework. Ripple’s XRP promised to convert crypto assets from mere investment options to viable, widespread means of digitized, global payments.

Another form of cryptocurrencies emerged as designers grew wary of regulatory gaps and volatility in crypto markets. Stablecoins are digital currencies whose value is pegged on national fiat currencies. They are designed to diminish the volatility of crypto assets.

Some stablecoins have their value pegged on other cryptocurrencies. Other coins are backed by asset-buying algorithms. Therefore, stablecoins can be backed by gold, a basket of fiat currencies, other crypto assets, and stable investment commodities.

The Ripple payment protocol has been in the markets since 2012, and we’ve had enough time to observe the rise and fall of the XRP currency. Ripple Labs enjoyed phenomenal, initial success in the markets because of its low-cost, global transactions that don’t allow chargebacks.

So, what is Ripple’s market position in contrast to stablecoins? Empower yourself by understanding the differences between traditional cryptocurrencies and stablecoins. How else will you make insightful investment decisions with long-term benefits?

Understanding the Rise of Stablecoins

The year 2020 saw a tremendous rise in the overall market cap of stablecoins, from $5.3 billion to $13 billion. The Coronavirus pandemic caused widespread volatility of assets, and investors moved to stablecoins in search of stability.

Investors prefer stablecoins because these currencies exist in environments that are free from speculation. Stablecoins maintain a value close to real-world assets, and you can predict your financial future with these assets.

With volatility out of the picture, stablecoins present the best investment options for folks pursuing decentralized finance. These digital currencies apply smart contracts, making them viable, more convenient replacements for banks and other third parties. You can save time and money by cutting out intermediaries.

Stablecoin providers are innovative, and they use algorithms to buy and sell assets for stability. The process is known as collateralization.

Bitcoin is an excellent example of cryptocurrency value fluctuations. In 2017, one coin was worth $5,950 in November, and the value skyrocketed to $19,700 just a month later. Bitcoins can fluctuate in over 10% of value daily.

The volatility of traditional crypto assets made them more viable for speculative investment and less suitable for daily transactions. Who wants to buy a bike with bitcoins today, only for the same amount of bitcoins worth a truck tomorrow?

Stablecoins are better suited for daily transactions than traditional crypto assets purely because of reduced volatility. These hybrid crypto assets did well in 2020 after addressing value fluctuations because of their transactional convenience.

Advantages of Stablecoins over Traditional Cryptocurrencies

  • Stablecoins utilize liquidity pools, diminishing volatility, and offering predictable purchasing power.
  • These currencies offer exceptional convenience in remitting secure, fast, global payments. The payment protocols integrate seamlessly with blockchain networks.
  • Stablecoins offer redemption guarantees at face value. You can recover the exact amount of fiat money you spent acquiring individual stablecoins.

Why Was XRP Overtaking the Crypto Markets?

The creators of Ripple wanted to develop a payment protocol that:

  • Processes transactions fast
  • Offers a global reach
  • Levies negligible transaction fees
  • Is secure and irreversible

This protocol applies a digitally distributed ledger, and the network reconciles the ledger via independent validating servers. Since the network of randomized validators is vast, the Ripple protocol can validate numerous transactions in real-time.

You can receive payment notifications a few seconds after approving transactions.

Just a year after launching, Ripple’s payment protocol attracted banks, and the company has so far integrated the protocol with the networks of over 100 banks. The blockchain tech was impressive enough to get Ripple in MIT’s list of the smartest companies.

Ripple’s success was continually growing, and XRP became the most competitive currency after Bitcoin. It had amassed a market cap of $73 billion by the end of 2017.

SEC’s All-Out War on Ripple and Other Traditional Cryptocurrency Firms

Coinbase announced it would suspend the trading of Ripple’s XRP, and other major blockchain exchanges followed suit. This was a significant development that caused XRP’s value to drop drastically.

Major cryptocurrency exchanges are dropping XRP because of the legal conflict Ripple has with the SEC. Most of the exchanges are trying to go public, and Ripple’s issues with the SEC could cause rising expenses for firms like Coinbase.

The SEC charged Ripple for offering securities for over seven years without due registration. This financial regulator categorized XRP as security. The lawsuit caused the price of XRP to fall by over 50%.

Ripple’s leadership is also facing charges for failing to disclose crucial information that XRP buyers needed to assess their risks. The current and former Ripple CEOs are accused of distributing XRPs for non-cash consideration without duly registering XRP as a security.

Ripple is determined to fight the lawsuit, and it does not consider the SEC to have any regulatory jurisdiction over XRP. According to the network’s leadership, XRP is a currency and not a security. Still, the SEC insists Ripple must comply with federal laws meant to protect investors and consumers.

Exchanges risk court charges and law enforcement raids if they continue trading XRPs without registering as securities exchanges. Since the registration process is costly and time-consuming, crypto-asset exchanges would instead let the Sec and Ripple Labs face off in court.

But Ripple Labs is not the only subject of the SEC’s all-out war on cryptocurrencies. This federal agency also fined EtherDelta $400,000 for operating unregistered securities exchanges. The circumstances would have been worse, and EtherDelta settled with the SEC to avoid harsh penalties.

Airfox and Paragon Coin were not so lucky; they were charged for selling digital tokens in ICOs. The Sec found grounds to penalize them for violating registration requirements for ICO securities.

Airfox had to return $15 million to investors and register its tokens as securities. Paragon Coin had to return $12 million to investors, register its tokens as securities, and report to the SEC periodically.

Parting Shot

Did you think the regulatory force would be so impactful? Do you remember how effectively legislative committees were in silencing Facebook’s Libra? The legal environment is hostile for non-compliant blockchains. 

Only Bitcoin seems resistant to government censorship, but it’s also the only one with an anonymous founding creator. We can’t say the same about Ripple’s XRP, and stablecoins will also be subject to government scrutiny. It’s only a matter of time.

However, blockchain technologies are secure, transparent, convenient, and cost-effective. Digital currencies offer irresistible benefits for users and investors. These fintech technologies will evolve to find legal compliance and global acceptance.

In the meanwhile, share your predictions on the reality of XRP’s quagmire in the comments section. Share this article with your friends who fancy cutting-edge technologies that make life easier.


The Major Risks of Investing in DeFi and How to Mitigate Them

For a crypto enthusiast, there could never be a better time to be alive. First, there’s their growing acceptance as a store of value. Additionally, developers keep churning out exciting products promising to revolutionize our financial lives. One such product is Defi, and 2020 has seen its popularity grow in leaps and bounds.

To the Defi proponents, it is the magic pill that will cure the shortfalls of conventional finance. Often Defi Investments are portrayed as a sure way to wealth. Though, a keen look at the sector reveals the presence of pitfalls amidst the opportunities always touted. Making headway in this space, therefore, demands prudence.

What then are the risks accompanying Defi Investments? What are the ways of mitigating them? Stay with me as we unearth the risks to expect when you invest in the sector and the measures to protect your investments from them.                

Which are the Major Risks in Defi Investments?

We can categorize the risks in the Defi sector into three, namely, technical risk, financial risks, and procedural risks. We shall now embark on explaining each of these briefly.

Technical Risks

Technical risks arise from malfunctions in the protocols, hardware, and software of a Defi platform. They are critical since they compromise the platform’s functions. They include:

Smart Contract Risks

Smart contracts are the lifeline of Defi. They are central to the execution of most functions. Therefore any error in their operation will impact the Defi they run on and imperil users’ funds.

Smart contracts are human-made and, therefore, prone to bugs and other vulnerabilities. Unscrupulous individuals will exploit these to gain unauthorized control over the protocol’s functions. Recently, there have been reports of incidences of smart contract exploits that led to the loss of funds.

Hardware risks 

Hardware is the foundation on which Defi services run. Compromised hardware impacts the proper functioning of a Defi platform. Common hardware risks affecting DeFi systems include:

  • The power issues may cause unreliability of the service or application, diminished service life and performance.
  • Sensitivity risks result from degradation, humidity, dust, or other similar issues.
  •  Incompatibility risks can limit the speed of the system and other issues.

Software Risks

The entire Defi ecosystem runs on software. A corrupted software impedes the proper functioning of the Defi platform. These risks present in different ways:

  • Distributed Denial of Service (DDoS) attacks disrupt the normal functioning of an app or service.
  • Injection risks introduce malicious code into the DeFi software, for instance, SQL injection into web apps.
  • Uncontrolled format strings execute malicious code in a web app.
  • Overflow risks cause the software to skip certain functions or implement them in error.

Financial Risks Related to DeFi

Most information on Defi only speaks of the profit-making part. Whereas it is true that with wise investments, one can make a ton, there’s also the possibility of incurring losses. Financial risks are those that put you in danger of losing your funds. These include:

Impermanent loss

Impermanent loss occurs when you fund a liquidity pool, and the price of your deposited assets falls compared to when you deposited them. In an ironic twist, you discover that you’d have been better off hodling them.

Currency Fluctuations

The whole crypto space is very volatile. Cryptocurrencies experience upturns and downturns spectacularly. If you invest funds in a particular crypto asset, then its price falls, you experience a loss. The same obtains for staked assets. Should the supporting asset decline in value, it will take the supported down with it.  


The Defi Sector is crawling with persons and entities of dubious intentions. These fashion different kinds of scams to the detriment of unsuspecting investors. Some of the means they employ include:

Exit Scams

Unscrupulous promoters dupe investors by setting up a project with a seemingly attractive concept. They collect funds through an ICO and melt away with the loot. A case in point is YFDEX. Finance’s heist.

Pump and Dump Schemes

Whales create an artificial demand for a coin/token, thereby drawing in investors. Later they withdraw their funds at a profit. Consequently, the market plummets, leaving the rest counting losses.

Fake Airdrops and Rewards

Scammers create fake Airdrops and giveaways to access private keys and personal info. They then use these to defraud you of your funds.

Defi Rug Pulls

Defi rug-pulls scams involve minting new tokens, marketing, and listing them on Uniswap. The masterminds inject liquidity, convincing trusting investors to swap their ETH for the token. After that, the cons withdraw the funds leaving holders high and dry.

Procedural Risks in DeFi

These are the risks arising from one’s usage of the Defi platforms and attendant infrastructure. They include:

Phishing Attacks 

Here a malicious player duplicates a website or service, duping the unsuspecting into sharing sensitive information. Alternatively, they could send emails that install malicious code on their devices. Then they use the victim’s sensitive information siphoning their funds.


A hacker poses as a representative of a DeFi service and convinces users to share sensitive information.

Exposure of Login Credentials

At times a user may knowingly or unknowingly expose their login details. Anyone with ill motives will use these to access their accounts.

Loss Of Login Details

Users may forget their login credentials. They, therefore, cannot access their accounts, leading to a loss of investments.

How Do You Mitigate Risks Associated With Defi Investments?

The Defi space can be unforgiving to anyone who navigates it without caution. One needs to guard their investments jealously. Here’re a few pointers on how to protect yourself from the risks outlined above:

Deal with Authentic Products and Services Only

Use products and services whose authenticity you’re sure about. Before settling on a product/service, DYOR! Look at reviews and recommendations about them. From there, you’ll get a good feel of what you’re getting into. Negative reviews are your cue to take off.

Use Multi-Factor Authentication

Secure your logins with several verification instruments. Examples include email confirmations, two-factor authentication, and multi-sig authentication.

Keep it Private

Treat your Defi investments like any other sensitive and personal information: private! Doing so helps ward off hackers’ attention.

Secure Your Digital Assets

The security of your investment is a wallet away. Hot wallets are ideal for actively accessing DeFi services. Cold wallets, on the other hand, are suitable for offline storage. Invest in a dependable wallet

Make Updates and Backups Your Friends

You must keep a backup of your sensitive information, including login credentials. Besides improving user experiences, upgrades, and patches of Defi solutions resolve vulnerabilities.


Don’t be fooled! Defi is not always about sunshine and rainbows. Behind the much-publicized good lurks danger. The Defi space is full of risks that can wipe out our investments if we don’t exercise caution. These risks present themselves in three broad categories: that is technical, financial, and procedural. Each of these broad categories has its specific shape of risks as has been elucidated. That said, any investor should take comfort that there are mitigation measures that they can take to protect themselves. Their judicious utilization will shield them from funds loss.

Crypto Daily Topic Cryptocurrencies

The Best  Crypto Trading Bots Going into 2021

The increased acceptance of Cryptocurrencies is a boon for the financial sector. It promises to improve the inefficiencies of the mainstream financial systems. Again, their adoption expands access to services. Furthermore, it creates a unique investment opportunity. 

Their proliferation, however, is a nightmare to any would-be investor. According to CoinMarketCap, the total number of cryptos stood at 6,955 as of September 2020. Coupled with the fact that the crypto market never sleeps, this makes investments in the space daunting. We need solutions to deal with these challenges better. Here’s where trading bots come in.

Crypto trading bots are software apps that automate trade in cryptos. They scour the market for the optimal buy and sell values aiming to earn the user a profit. The volatility characterizing the cryptos market makes them all the more important. In this article, we look at them, factors to consider when selecting one, and finally, the outstanding bots going into 2021.

The case for Crypto Trading Bots

Crypto bots are essential in organizing one’s trades. Currently, the market is experiencing increased usage. Several factors explain this shift, and here we present the key ones.

i) Bots Eliminate the Human Element in Transactions

Left unchecked, emotions cloud the trader’s judgment. High-risk investments like cryptos require objectivity. Bots make transaction decisions based on rational analysis and interpretation of the market. This way, they eliminate impulsive and speculative trading that could imperil one’s investments

ii) Theirs is A Round The Clock Operation

The cryptocurrency space never sleeps. Again it is volatile. A momentary lapse and one could miss out on opportunities. Alternatively, they could incur losses. Here’s where trading bots come in handy. Their actions are automated. As such, they capture every shift in the market as it happens. This way, they save the trader the need to stay awake to track the market physically. Once configured, they automate transactions even when the trade is unavailable.

iii) They are Better at Multitasking

The crypto market is a maze. There are millions of transactions taking place in any instance. Physically tracking these is demanding even to the seasoned trader. Not so for the bots. They simultaneously track changes across multiple cryptos and exchanges. Thus they’re better at picking the best trades than us humans.

iv) Bots Streamline Transactions

For one to trade profitably, speed is essential. The market could quickly gain as it could fall. Unlike us, Bots execute transactions in a flash. Thus they enable timely settlements. Their use could make the difference between profit and loss.

Which Factors do You Consider When Selecting a Trading Bot?

Bots flood the crypto market. Each of these claims to be the real deal. Separating the quality product from the rest could be challenging. The following pointers will help you ease that decision:

  • Reliability- quality bots guarantee round the clock function.
  • Security- a good bot is robust and able to withstand attacks.
  • User experience- it should be easy to understand and use.
  • Affordability- a good bot offers efficiency at a fair rate.
  • Profitability- Quality bots enable users to achieve consistent profits.

Which are The Best Crypto Trading Bots Going into 2021?

Each crypto trading bot is unique. Moreover, no single bot is perfect. Selecting one boils down to individual preferences and how they fit into one’s trading strategy. Here are our best five picks moving forward. It is a random list, not an indicator of some particular ranking.

1. CryptoHopper

It is easy to use a semi-automated bot seeking to simplify crypto trading. It fashions itself as a tool that makes crypto traders maximize profits while reducing losses. Its key features include:

Social Trading

Through telegram trading, experienced analysts ( signalers) share insight on rising coins with other traders. Users may subscribe directly to these signalers. Moreover, they may automatically respond with a buy or sell order when it comes in.

It’s Cloud-Based

The service is entirely cloud-based. Therefore one can trade 24/7. One can log in anytime from any device.

Enables Exchange and Market Arbitrage

The arbitrage tool enables the user to benefit from the price differences between exchanges or crypto pairs. On enabling the bot, it searches for arbitrage opportunities. Besides, you don’t need to withdraw your funds from one exchange for another.


Through the market making bot, one can easily make markets and trade on the spread.

Strategy Designer

The strategy designer helps a user to develop a strategy enabling them to get the best trading signals. One can harness many indicators and candle patterns, including RSI, EMA, Parabolic Sar, CCI, Hammer, Hanged Man, and many more. Your Hopper will scan the markets 24/7 searching for opportunities for you. 

  • Backtesting/Paper Trading
  • Mirror Trading
  • Trailing Stop Tool

2. 3Commas

Incepted in 2017, 3commas is a popular crypto trading platform offering bot development functions. Its easy usage makes it ideal for users of all levels of technical ability. Its key features include:


This feature allows trading across several exchanges from a single window. Smart trade allows you the following functionalities:

  • Trailing order- enables you to adjust Take Profit and Stop Loss parameters automatically
  • Smart Cover- allows one to sell and buy back their coins
  • Short orders

Wide Exchange Integration

3commas supports up to 13 different exchanges. This makes it convenient to trade over multiple platforms.

Portfolio Management

Through this feature, one tracks their investment. The user may:

  • Create their coin portfolio(s)
  • View portfolios of other 3commas users
  • Adopt other users’ portfolios to their needs
  • Balance their coin ratios

TradingView Signals

The TradingView signal finder allows instant tracking of the market. The signal finder issues four order types, namely:

  • Buy
  • Strong buy
  • Sell
  • Strong sell


Users can simulate trading before executing actual trades. This way, they get to test their trading strategies and get a feel of the platform’s features.

3. Shrimpy

Shrimpy describes itself as the social trading platform for cryptocurrencies. It takes pride in simplifying portfolio management. Among its key features are:

Portfolio Management

Shrimpy enables you to connect all of your crypto exchanges and automate transactions. It helps you build a portfolio strategy. Also, through it, one can monitor the market. Its management tools automate portfolio allocations and rebalancing.

Social Trading

The platform has bet big on its community. Users have a forum for exchanging ideas and strategies. Again they get to educate each other on matters crypto. As a result, they increase their mastery of the sector.

Copy Trading

Shrimpy allows one to follow other investors on the platform. This way, they can model their investments on the leaders’. Copying the strategies of successful traders helps improve one’s profitability.

Robust Security

The platform boasts of robust security features. Each uses FIPS 140-2 security modules to encrypt all the API keys. Additionally, the platform only reads data for trading purposes. Therefore it’s unable to withdraw one’s funds. It also supports two-factor authentication.

Social Leader Reward

Through the social trading platform, Shrimpy creates leaderboards. Users earn $4 for every new follower they gain every month.

Shrimpy Universal Exchange API

Shrimpy offers its users an industry-leading API that facilitates crypto transactions, the instantaneous collection of data, and the management of exchanges.

4. Gunbot

Gunbot is an advanced bot allowing easy transaction of cryptos. After the user identifies a trading strategy, the bot automates it. Its popularity draws from the following features:

Multi-Platform Support

The software is compatible with different platforms. It runs on Windows, macOS, Linux, and ARM devices.

Multi Exchange Support

Gunbot supports the most popular exchanges. Additionally, the platform continues to support new exchanges. Further, it supports lesser-known spot exchanges through the CCXT library.

Strategy Presets for Beginners

For the uninitiated, trading can prove arduous. Gunbot eases things for the newbies. Its strategy presets allow them to trade easily as they learn the ropes. 

Wide Variety Of Trading Options

Gunbot users can buy and sell in 14 different ways. You can use all these methods within a customized strategy. Also, one may employ a set of confirming indicators to specify the trading conditions they want to allow. Including a stop-limit reduces one’s risk exposure.

Dollar-Cost Averaging(DCA)

Gunbot uses the double up method to average down assets automatically. The morbid allows one to reach a lower average price per unit as prices decline. Thus it enables exit at the lowest profitable price. Through DCA, one can set up the following options:

  • Trigger for DCA orders
  • The minimum price difference between buy orders while in DCA
  • Frequency of placing DCA orders
  • The ratio of volume purchased via DCA orders to the amount of quote units already owned.

Reversal Trading

Gunbot can automatically accumulate quote currency when prices go down. It does so without investing more than the initial buy order. This way, it helps bring down the break-even point.

Telegram Integration

Through telegram, one gets to interact with their bot. This feature enables:

  • Profit tracking- get profit/loss statistics for every trading pair.
  • Modify settings- change settings on the go, such as enabling or disabling pairs.
  • Get notifications on trades.
  • Monitor trades.

Final Thoughts

The crypto space is disruptive. Our continuing acceptance of cryptos is reshaping the financial landscape. Thanks to them, there’s the possibility of increasing financial access. Additionally, we can look forward to enhanced efficiencies and the opening up of investment opportunities. 

 As crypto markets are volatile and complex to navigate, we require better analyzing and strategizing tools. Crypto trading bots make this possible. They take the chore out of transactions while seeking profit for the investor. 

 In a market bursting with them, one should exercise caution in their choice. This article outlines the key factors to consider when picking one over the other(s). It goes on to identify the best bots going into 2021. Though not exhaustive, this guide is a good starting point in your crypto bot choosing journey.

Blockchain and DLT Crypto Daily Topic

5 Portals That Rate And Rank DeFi 

There’s never a dull moment in the Defi sector. Continuous innovation in the space affords us products and solutions that ease our transactions. Additionally, the thriving Defi sector provides alternative investment avenues. Further, the investments attract better returns compared to those from conventional finance. It isn’t a wonder that investors in their droves keep boarding the Defi juggernaut.

In a sense, the ballooning of Defi is both a blessing and curse, A blessing in that it expands our choices and gives us greater say over our funds. On the other hand, many competing products could cause us headaches in product choices. The fact that genuine and fake projects dot Defi’s landscape further exacerbates this dilemma.

Luckily though, we’ve portals whose mission is to take the difficulty out of Defi investments. These scour the Defi sector, analyzing projects and trends for our consumption. In them, we have crucial allies for navigating the Defi maze. This article examines five portals that rate and rank Defi to our gain. We shall proceed to explore the features that make them a must-have tool in our investment journey.

1. DeFi Pulse

DeFi Pulse site enables you to find analysis and rankings of Defi protocols. Its salient features include:

Total Value Locked

This metric shows the amount of funds locked up in various DeFi contracts. A high TVL is indicative of a thriving economy. Defi Pulse uses a graph to capture the daily TVL progression.

Market dominance

This standard ranks projects according to their liquidity levels. Projects with higher liquidity are a stable and attractive investment option.

The Market Leader Share Metric

The Market leader share metric gives you a glimpse of the Defi categories available on Defi Pulse’s site. Major types include Lending, DEX’s, Derivatives, Payments, and Assets.

DeFi Pulse Farmer

The DeFi Pulse Farmer is the site’s newsletter. It covers the latest news and opportunities in the Defi space.

DeFi Lending

The Defi lending feature shows the interest that these protocols generate per year. Through this ranking, you can determine the most profitable investments. The platform also has a calculator that shows you how much interest you’d draw per month by locking a given amount of an asset.

DeFi Pulse Token List

The Token list is a directory of the legitimate tokens trading on Ethereum.  It serves to reassure users that they are dealing with a genuine project.

2. CoinMarketCap DeFi page

CoinMarketCap (CMC) has distinguished itself to be a trustworthy platform. Its Defi page lists tokens simply and conveniently, allowing for faster searches. Its other standout features are:

Cryptoasset Ranking

Here you find all the assets that CMC lists. You get to see the asset’s market cap, price changes within a day or week, its volume, and circulating supply.

Coin Details Pages

These provide in-depth information regarding a coin. The “market pairs” tab features prominently on these pages. Market pairs have unique confidence indicators that aid you in picking an exchange to trade. This confidence score mirrors the exchange’s liquidity.


Here you get to compare how the different exchanges fare. The exchanges fall into different categories, including spot exchanges, derivatives exchanges, and decentralized exchanges.

CMC’s Watchlist

The watchlist feature allows you to mark your favorite cryptos. In this way, you can easily track their performance.


Keep abreast of the happenings in the crypto and blockchain space with this tool. The embedded Signals feature sends you news directly from a project or a given crypto protocol.

3. Etherscan

Etherscan is an Ethereum based platform providing analyses of the Defi sector. It debuted in 2015 and one of the longest-running independent projects built on the network. Its mission is to provide fair access to blockchain data. Some of its key features are:

DeFi Leaderboard

Through Etherscan’s leaderboard feature, you get to find up to date analytics and rankings of DeFi protocols. The rankings take into account the total value locked into the smart contracts. From the leaderboard, one can skim the following information:

  • The project’s rank
  • The project’s name
  • Its category
  • TVL in USD
  • Price changes in a day
  • Price changes over a week
  • The project’s market capitalization
  • The market cap to TVL ratio

Token Tracker

Etherscan tracks and ranks two kinds of tokens. First is the ERC 20 token, and secondly, the ERC 721 token, also known as the Non-Fungible Token.

ERC 20 token Tracker

In ranking the ERC 20 token, Etherscan identifies the project by name, states its trading price, and changes in 24 hours. Additionally, it indicates the token volume within a day, the token’s market cap, and its total number of holders.

Non-fungible Tokens Tracker

This tracker ranks the top ERC 721 tokens. It identifies the project and its volume first within a day and finally in a week.

Yield Farms Tracker

Yield farming is an essential component of Defi. Accordingly, Etherscan has provided a rank for the top yield farming ventures. You’ll find the project’s name, its start date, addresses, trading prices, and market cap in this ranking.

4. Loanscan

Loanscan is your go-to platform in matters of Defi lending. It gives you access to financial information and analysis for credit issued on the Ethereum blockchain. The platform supports loans from Compound, dYdX, Dharma, and Maker DAO protocols. However, it plans to introduce additional protocols and blockchains in the future. Minimalist in nature, it has two significant features:

Earn Yield

Here you get to know the amount of interest you’ll earn investing in a given platform. Besides showing the earning in terms of USD, Loanscan also compares the yield across cryptos. 


This feature enables you to determine the cheapest platforms to seek credit. Again it lists the platforms and their lending rates for different cryptos. 

5. DeFiprime

DefiPrime is a feature-rich portal offering comprehensive information on different Defi projects. On this site, you’ll find news and blog articles relating to Defi. Additionally, you can conveniently search for projects under several categories. Some of the main categories include  Alternative savings, Daos, Payments, and Staking. The site eases the process of finding projects as it arranges them in niches. Thus, it saves you time.

Final Thoughts

The growth of Defi has placed us in a quandary. On the one hand, we celebrate the convenience of transactions, expansion of financial options, and notably, the financial freedom Defi affords us. That said, their proliferation introduces challenges in determining which products to choose. As the sector has its fair share of legit and fraudulent projects, this difficulty gains in significance. All is not lost, though. Some portals undertake analysis of the Defi market to keep us in the know. Using these portals takes the guesswork out of investing, guaranteeing us fruitful experiences in the space. 


5 Ways Investors Lost Cryptos in 2020

Without a doubt, 2020 is the year that the crypto community experienced significant growth. Cryptocurrencies regained much of their lost value and reached new heights, thanks to their growing adoption. 

The crypto industry continues to grow, and investors are laughing all the way to the bank. Along with all this good, there were a host of crypto scams that left investors with a bad taste in their mouths. But how did these crypto scams occur? 

Cryptocurrency losses due to hacks on the DeFi platforms, theft, and fraud amounted to $1.8 billion within the first ten months of 2020, up from $4.52 billion in the entire previous year. The 2019 DeFi volume figure was negligible, but it now appears the DeFi platforms are lucrative for bitcoin thieves. With up to $98 million in losses, DeFi hacks made up 21% of the total crypto fraud in 2020, which is quite significant. But why so many crypto scams?

The USD value in DeFi cryptos and other cryptocurrencies has grown exponentially, attracting the attention of scammers, money launderers, and DeFi protocol hackers. Everyone, including those that don’t want to put in the hard work, wants a piece of the Bitcoin profits.

Scammers use different methods to get a piece of the crypto cake, but according to a report by CipherTrace, Ponzi schemes and investment scams are two of the main ways that investors lost cryptos in 2020. 

Let’s have a detailed look at how crypto investors made losses in 2020, shall we?

1. Ponzi Schemes 

Ponzi schemes have emerged as one of the favorite vehicles for crypto frauds, and it seems they are not going anywhere. Usually, the schemes promise investors quick significant returns with little or no risk. 

The first few returns are made from recruits’ funds, serving as bait for more investment into the scheme. Most of the time, there is little or no business development in the background to support the pyramid of promised returns. Eventually, the schemes come tumbling down, and founders vanish into thin air with the investors’ money. 

The classic crypto giveaway scam moved to YouTube from Twitter in 2020. In one instance, a hacker hijacked tens of YouTube accounts to broadcast a crypto giveaway falsely promising to double your earnings within a short period. The Ponzi scheme was broadcast live on YouTube, posing as a message from Bill Gates, the Microsoft CEO. 

2. Exchange Hacks 

Centralized exchanges provide a platform for the buying and selling of cryptocurrency. They act as middlemen, with various currencies for trading in a partially regulated environment, and are a favorite of newcomers in the bitcoin industry.

Unfortunately, centralized bitcoin exchanges come with a variety of risks. For starters, the funds deposited are entirely on the platform owners’ hands, which is somewhat risky.

In September 2020, hackers made away with a large haul of cryptocurrency worth $275 million from KuCoin, a popular platform, becoming one of the largest hacks. The cybercriminals used various methods such as diversifying into multiple currencies and mixers to avoid leaving a trail. 

But the decentralized exchanges were not spared either.

Another high-profile bitcoin theft in 2020 involved the Cryptocurrency exchange Bisq where virtual currency worth $250,000 was lost. The hackers used a vulnerability introduced after a recent update to the network, allowing them to manipulate fallback addresses and send the funds to the wallets they controlled. 

Earlier in the year, IOTA Foundation had to temporarily suspend operations following a cyberattack targeting the IOTA wallet app. The organization took steps to freeze the entire system within 25 minutes of reports that cryptos were being stolen from users’ wallets. 

3. Social Media Crypto Scams

The #cryptocurrency tag on Twitter hosts who-is-who in the crypto industry, including tech engineers, investors, and programmers. But the social media platform is one of the several ways that crypto thieves used to scam people out of their hard-earned cash. 

Hackers took control of the social media giant back-end referred to as the “God Mode” by hacking Twitter employees to access high-value accounts. 

On July 15th, the verified accounts of famous personalities such as former President Barack Obama, Elon Musk, Bill Gates, and Kanye West were hacked and used in a fake crypto giveaway. The hackers promised $2000 worth of cryptocurrency for just $1000, hauling over $121k of stolen bitcoins in the process. 

4. Sim Swapping 

SIM swapping is a relatively new crypto scamming method which is also gaining a foothold. Scammers convince the mobile service provider to move a number to a new SIM card in a device they control to perpetrate crypto scams. 

The method has become too familiar, especially in the cryptocurrency and Bitcoin industry. Usually, the hackers hope to access the victims’ cryptocurrency wallet through SMS sent to their phone for two-factor authentication. 

If successful, scammers access your phone, cryptocurrency exchanges, bank accounts, and other sensitive personal information to wipe your crypto wallet dry. Recently, Harvard University Ph.D. students and professors highlighted the increased risk of SIM swaps in 2020 in a research paper. Incidentally, one of the authors fell victim to a SIM swap.

In one unfortunate incident, a man lost $24 million through SIM swapping as a part of the coordinated attack. It has emerged that the 2020 twitter hacker was part of the SIM swap syndicate. 

5. Trickery by the Phishing Websites and ICOs

2020 has had more than its fair share of phishing scams, and especially in the crypto industry. The main route is often through email, where the scammers guide people to particular websites to steal their credentials, which they use to access their wallets.

Just recently, scammers successfully tricked an astounding number of people into visiting a replicated version of the popular cryptocurrency Ripple (XRP) ledger to steal more than $280k

Meanwhile, fake ICOs or the initial coin offering occur frequently and are a significant risk for bitcoin investors. Like an initial public offering, the initial coin offering’s main objective is to raise funds for the startup. But how do fake ICOs work?

Usually, fraudsters hype the project with fake ICO details to convince the investors. They use their website to promise heaven and earth to the users and then instruct them to make deposits in provided wallets. Sometime after the deposit, it becomes more apparent to the Investor that they were scammed. 

One good example is Big Coin, which used a variety of masked campaigns. They hyped their fake cryptocurrency’s capabilities and technical progression to convince investors and steal $6 million. 


With cryptocurrency, due diligence is of utmost importance before dipping headfirst into the industry. Bitcoin tends to attract attention, especially when transitioning into the bull market. Everybody wants a piece of it, and less experienced investors fail to spot the red flags, losing money in the process.

It is still a crypto jungle out there, with scammers and thieves using old tricks in the book such as Ponzi schemes, hacking, and phishing, as well as inventing new ways to shake you off of your hard-earned money. But if there’s anything that 2020 has taught us is that the internet space can be very profitable, but at the same time, very risky. Analysts are in consensus that only education can help reduce the risks of crypto scams. Take extra care when investing and accessing your cryptocurrency wallets, and the whole experience will be worth it. 

Crypto Daily Topic Cryptocurrencies

What is IDO? Is it the End of ICO and IEOs?

Cryptocurrency and blockchain aim to reduce dependence on regulated financial models and centralized platforms. Unfortunately, the majority of the exchanges are still running as centralized and in fully controlled models. 

IDO or the Initial DEX Offering has emerged as a solution to ensure independence and autonomy. The interest in the decentralized token listing is growing, indicating a desire to move towards a no-restriction and higher efficiency model, and that is where IDO comes in.

Initial DEX Offering is only a few months old, and it has already become a preferred method to raise capital in DeFi and distribute tokens. Admittedly, the IDO community is inexperienced, but still, it is making great strides.

Shortcomings of the Initial Coin Offering

2017 was nothing short of a fantastic year for ICO, and anyone with some white paper on digital currency could raise funds. But as it turned out, most of them were scams, and billions of dollars were lost, highlighting ICOs as scammy. 

ICO has its place in the history books as it represents the first method that investors raised funds in the crypto realm, but its weaknesses are quite glaring, and therefore the need to move past it. 

Essentially, investors in crypto startups did not have the necessary knowledge background to assess the project’s viability. Some of them invested in rumblings on white papers, and others in ICOs with staggering high valuations. But that is not all.

Initial coin offering had a loophole, and most scammers exploited it gleefully. After ICO fundraising, the project teams were free to collect the funds in one lump sum. Even if the project teams were truly committed to the project, receiving such a sum in one fell swoop was distracting, and the motivation to continue with the project would diminish significantly. 

The other shortcoming was the absence of a decent governance mechanism to safeguard the investors’ funds. People who put up their money were left stressing about their investments’ fate, continually sifting through everywhere for news, and there was also the issue of gas wars.

The most common way to contribute or participate in ICOs was through sending money from personal wallets. This created a “gas limit,” which is the maximum amount of funds you are willing to part with as transaction fees to move up the transaction validation system’s queue. 

Gas wars occurred when particular investors put up transaction fees too high to push rivals down the queue. Over time, the initially overjoyed investors for winning the gas war would then begin to sulk as regulators and other bodies started to examine some of the fundraisings’ legitimacy. For example, the SEC is beginning the process of filing cases against some of the concluded ICOs. 

Considering all these factors, legitimate projects can fail to get sufficient funding through ICOs. This is mostly because of the diminishing reputation and the need for a better alternative. 

What is IDO?

The IDO fundraising method has striking similarities to ICO and IEO. However, it is decentralized and based on DeFi, a robust, innovative, and scalable open finance technology.

An excellent example of Initial DEX Offerings is the Raven Protocol-built IDO, the first of its kind, hosted on Binance DEX. The others in operation include UMA (a Synthetic asset) and BZX, a margin trading and lending protocol. Many other platforms already have IDO dashboards and are looking to throw their hat into the ring.

Not too long ago, UMA, BZRX, and COMP used Uniswap, popular for its fair and smooth way to deliver tokens to the market. This method of distribution has become standard and is open to public access. IDO empowers users from different countries to participate in the trade. That means people from all over the globe can purchase tokens from Raven Protocol and other token vendors. 

The Difference between IDO, IEO, and ICO

The main difference between IDO and IEO is the fundraising platform hosting them. On the part of the ICO, the operations and transactions are managed on an inner platform. 

On the other hand, the centralized exchange IEO (initial exchange offerings) hosts “ICO” in-house and is, therefore, the ICO’s mutated version. Unlike ICO, IEOs offer an additional layer of intermediation, only allowing legitimate projects. Unfortunately, a large number of IEO’s are selling similar tokens to ICO, which may complicate the whole issue.

No doubt, the regulatory landscape governing crypto exchanges such as EIO is complicated, but that does not shield it in any way. The U.S. regulator has made it clear that ICO token sales are the same as securities issuances, posing a significant risk to IEO issuers and contributors. It is not an exciting prospect to invest in a promising project only to enter the SEC’s bad books. 

Typically, IDO (Initial Dex Offering) is IEO and ICO rolled into one decentralized platform. IDOs emerged with the DeFi rally as a new form of raising capital on a decentralized platform. In the case of IDOs, it is the active community members that vet and approve projects and tokens. This mechanism is somewhat favorable as it incorporates diverse opinions. 

Also, DEXes and IDOs are part of the push to decentralization as regulators begin to shift their attention to cryptos. Furthermore, the synergy between DeFi and DEXes reinforces their value in the crypto world.

The exchange fee for IEO is spiraling out of control as the market develops, and together with increased scrutiny by the regulators put it at a disadvantage. The advantage of IDO over IEO is in its decentralized nature and scalability. You don’t need permission from any authority to trade in the exchanges.

Is IDO Replacing IEO and ICO?

The birth of new technology is most often similar to a human child that goes through various stages before it matures. IDO is still in its infancy and is quickly moving to puberty, with various noticeable characteristics such as instability. The concept of IDO is no doubt exciting and may replace IEO and ICO sometime in the future. However, it has to mature first before it can take over from IEO and ICO. 

UMA, the synthetic assets platform which placed $500k into a liquidity pool, best illustrates the above point. The total supply put up was 2% under a starting price of $0.26, similar to what the seed investors paid a couple of years ago. Investors scrambled to purchase the tokens, and the bonding curve effect occurred, raising the price in the process.

Competing traders set up higher gas costs, resulting in a higher $2 price of UMA within minutes. Some buyers were dissatisfied as they purchased the tokens at a higher price than the initial investors. 

This is the same problem that BZX’s buyers face on Uniswap, with BZRX token prices rising to 12 times within a minute. There is still no IDO model that balances fairness and the need to maximize the capital. In the future, this goal may become a reality, but there’s some distance to cover. 


No doubt IDO is the next big thing in DeFi and blockchain finance. However, it is still in the development stage, with instability and slight uncertainties, and it may be some time before it becomes mainstream and replaces IEO and ICO. In the meantime, IDO is in a wait-and-see situation.

But that does not mean you should stay away from IDO, at least for the time being. It means that you should be prepared to deal with the price instability until the platform matures and stabilizes in a not so distant future.


Dash Is Known for Privacy, But Should You Invest In It?

Dash was developed with privacy in mind and to overcome the shortfalls that Bitcoin was facing. Originally introduced as Xcoin in 2014, the crypto has rebranded twice – first as Darkcoin then as Dash. Speculation that Xcoin was a pump-and-dump scheme were rife and likely contributed to the name change. As the altcoin was being renamed to Darkcoin, it received press, which pushed its adoption among darknet markets. Ever since, Dash has had a somewhat controversial reputation to the effect that even some governments pushed for their delisting. 

Arguably, Dash offers the best privacy guarantee in the entire cryptoverse – and this can be proven by how authorities get all fidgety at the mention of the crypto. Just recently, the US Internal Revenue Service announced a mega reward for anyone who can help them break Dash’s privacy and find the origin of transactions.

Despite Dash appearing like privacy is all it offers, it’s hard to deny that the altcoin is a worthy competitor to the likes of Bitcoin, Ethereum, and Litecoin, which are darlings to many investors. The crypto features prominently among the top 30 cryptocurrencies by market cap. It has significant daily trading volumes and can be exchanged with most major currencies – both fiat and crypto.

But wait, considering the reputational and potential availability challenges the cryptocurrency is facing, should you invest in it? Well, read on to find out what makes Dash a worthy investment.

Performance in 2020 

When choosing a good crypto investment, financial performance is among the key metrics to look out for. Throughout 2020, dash has shown rather erratic performance – call it volatility. Opening the year at around $20, Dash quickly rallied to peak $140 within weeks. Those who took advantage of this bull run undoubtedly tripled their investment. 

But it wasn’t long before the bears came calling and sent the crypto back to $40 at the beginning of April. In the subsequent months until June, Dash traded at between $60 and $80. This was the least volatile period for the crypto in the year. Still, these fluctuations were significantly high by crypto market standards.

After a brief rally in August followed by a correction in October, Dash seemed to stabilize in December, trading at roughly between $90 and $100. 

As to whether the crypto has enough volatility to challenge investors, the answer is an unwavering yes.

24-hour trading volumes have consistently declined over the year, which could imply two things: either, investors are HODLing their coins or just not buying as much. Usually, declining trading volumes are associated with falling prices. As for Dash, this has not been the case, not at least in 2020. One conclusion we can draw from this observation is that Dash has a rare element of resilience, and we can expect it to remain afloat in both good and bad times. 

Does Dash Have a Future?

Dash’s performance in 2020 leaves little doubt about its potential for short-term profitability, particularly with reference to its volatility. Volatility in crypto trading, just like in forex, allows investors to take advantage of price changes to make their cuts. In 2020, Dash showed price changes of up to 500%, which implies massive trading potential.

Trading Dash seems lucrative in the short run, but if you choose to invest in it for the long-term, are returns promised? Well, the indicators below give more insights on the direction the crypto is likely to take in the future.

#1 Dash development is funded 

Worth noting is that Dash is a next-generation crypto and a decentralized autonomous organization (DAO). The DAO is a collection of privileged nodes (masternodes) that invest back 10% of gains earned from mining. Well, this is not their primary function, but the dedication of a tithe to the network’s development promises sustainability, for instance, by building integrations fast and reliably. Unlike other cryptos, the continuous development of Dash does not entirely rely on a vibrant user community.

#2 The crypto responds to bull runs

In 2017 when a majority of crypto joined the historic bull run, Dash gained over 8,000%. Launched only 3 years before and trading at $0.12, the crypto had rallied to trade at $1,494 by the end of 2017. Dash entered 2018 with pride, flying as high as $1,000 – at a time when other cryptocurrencies were also flourishing. The entry into 2019 was not as flamboyant given the bubble had long burst, and most cryptos were heading for a correction. Even so, Dash maintained an impressive $100-$170 exchange rate. During past bull runs, the crypto’s behavior gives hopes that it will keep rising as other cryptocurrencies gain adoption.

#3 Crypto users are demanding more privacy

The demand for privacy across the globe is just increasing, and if there were a merchant trading this commodity, this would be the best time for them to cash in. From anonymous donations to buying what the government doesn’t want you to, privacy is increasingly becoming a selling point, and Dash takes care of this demand. To no one’s surprise, Alternative 36, Inc., an American e-commerce company, started accepting Dash payments for legal cannabis trade in the US.

#4 Dash offers superior performance 

Compared to Bitcoin and Ethereum, Dash payments are fast. As cryptocurrencies continue to gain adoption in the retail industry, Dash might become a more favorable option for payments than its mightier siblings.

#6 Dash’s ‘InstantSend’ and ‘PrivateSend’ 

Dash offers some transaction versatility. You can choose to send money instantly or wait for miners to work at their pace. Similarly, you can decide to send money anonymously or leave traces. This versatility makes Dash suitable for use in a wider range of applications, and hence, increases its utility. To guarantee the future of a cryptocurrency, the utility is everything. 

Regulators Have Their Eyes Fixed on Dash. Will That Affect You?

Regulators are clearly unhappy with the level of anonymity that Dash provides. In Japan, they pushed exchanges such as Coincheck to delist Dash and other anonymity-focused cryptocurrencies. The US Department of Internal Revenue also made clear its intention to crack Dash’s privacy and other anonymity cryptos. You probably have fears that you may become a victim of such heightened surveillance. While such an event is possible, it is worth noting that the crypto is used for many legitimate trades, and there’s no earthly reason why you would be victimized solely for investing in Dash. 

Final Thoughts

Dash is one of the best-known anonymity altcoins, and this reputation might have blinded investors from seeing the crypto’s investment potential. For short-term ventures, we have seen that Dash offers unmatched volatility, where investors can walk in and walk out with huge profits within months. In the long term, Dash is equally promising – based on past performance, support for network development, increasing demand for privacy, and its utility, which is likely to increase. While there might be concerns about the surveillance authorities have on Dash, overall, its prospects for profitability overshadow these concerns. 

Crypto Daily Topic Cryptocurrencies

5 Best Websites to Buy Bitcoins Directly from Your Device, Anonymously

Blockchains are secure and imitable, but these publicly-circulated ledgers aren’t anonymous. In contrast, crypto assets are designed for transparency. If you make crypto investments, analysts can dedicate sufficient resources to track down your identity.

The Bitcoin blockchain and other crypto networks qualify as financial services, and the law requires them to know the customers they serve. The Anti-Money Laundering legislation requires them to collect your ID at some point while serving you.

Most folks took an interest in these digital assets because they thought transactions would be untraceable. While cryptocurrency networks don’t offer anonymity by default, there are ways through which you can buy bitcoins anonymously.

The convenience of buying cryptos directly from your device is unbeatable, and if you can remain anonymous while at it, even better! 

In this article, we highlight some of the websites that make it easier for you to achieve this. These websites charge a bit extra than what bitcoins usually cost, but the kind of privacy you’re after does not come for free.

So, let’s dive into five of the best websites that are absolutely worth your time. 

1. LocalBitcoins

LocalBitcoins facilitates peer-to-peer crypto exchanges. It works pretty much like eBay, and it’s fueled by willing-buyer, willing-seller consensus. You can find numerous sellers offering their bitcoins for cash. P2P Bitcoin exchanges enable sellers to bypass costly taxation, and LocalBitcoins will empower you to buy bitcoins without any ID.

Through LocalBitcoins, you can directly communicate and make deals with potential sellers. The platform makes money from these exchanges by levying escrow services. These services are powered by Smart Contracts, making it hard for scammers to dupe diligent bitcoin buyers.

This website is reliable because it rates sellers by keeping reviews of their transaction history. Therefore, you can tell apart genuine sellers from scammers by just scrolling.

You’d be surprised by just how many sellers are out there. The great thing is that LocalBitcoins is available anywhere there are sellers, and you could buy bitcoins anonymously at your local coffee shop.

2. BitQuick

This website lets buyers purchase bitcoins via cash deposits. It empowers you to buy bitcoins fast and anonymously, but the cryptocurrencies cost a bit more.

BitQuick was launched in 2013 and is registered in Ohio, United States. This website only serves Americans, and it only accepts cash deposits. You can buy bitcoins anonymously from sellers by depositing cash to their bank accounts.

You can head over to the website and find suitable sellers. After agreeing on the pricing, the seller locks currencies into the BitQuick escrow, and the bitcoins are transferred to your crypto wallet when you deposit the agreed cash amount.

For verification, you must meet up with the seller, who should take a picture of the deposit receipt and upload it to the system. This service only charges 2% for buying bitcoins.

BitQuick only sells bitcoins. You can buy as little as bitcoins worth $10 and as much as $10,000 worth of bitcoins at a go.

3. Wall of Coins

Wall of Coins is yet another peer-to-peer marketplace for trading cryptocurrencies. This service is registered under Genitrust Inc., and it generates daily traffic of 25,000 unique visits.

Wall of Coins is famous because users can buy bitcoins anonymously via cash. It helps buyers and sellers to come together, serving the United States, the United Kingdom, and Germany.

Enjoy anonymity, buying bitcoins without an ID because Wall of Coins is unregulated. You can buy and sell various cryptocurrencies on this website, which accepts three methods of payment, including:

  • Bank of America’s Teller Assist.
  • MoneyGram Deposit.
  • Cash deposits at banks.

This website does not impose transaction limits. It is also a great option because it offers a live chat, allowing you to communicate with sellers directly. You can also access customer support via phone calls.

Wall of Coins holds sellers’ bitcoins in escrow, and it releases them to you when you complete the payment instructions.

4. Bisq (Formerly Bitsquare)

Bisq offers fully decentralized exchanges, and it does not require any personal information or ID verification. Therefore, this service does not hold users’ funds.

It is a peer-to-peer network, and users exploit it for anonymity. They visit it via secure browsers such as Tor. Users trust the platform because of its open-source structure.

Bitsquare launched in 2016, and it allows bitcoin sellers to create offers by locking agreed amounts in escrow. Both sellers and buyers make holding fees of 0.001BTC, and they also pay transaction fees for the service.

Since Bisq does not hold any money, crypto or fiat, it uses arbitrators as escrows. Bisq arbitrators are frequent users of the platform who perform escrow services on third-party terms.

Arbitrators deposit huge security fees to Bisq to finance trust. If arbitrators make away with seller’s bitcoins or buyer’s fiat money, their deposits can make up for the losses. They perform this role in the pursuit of earnings from the transaction fees.

5. LocalCryptos

This website serves over 100,000 users in over 100 nations. It is a non-custodial platform offering peer-to-peer, decentralized crypto trade.

LocalCryptos empowers you to buy bitcoins anonymously, most transactions only taking ten minutes. No third parties are involved, and your messages with the seller are encrypted. This website is secure and trustworthy thanks to its blockchain integrity. It offers escrow services for you to buy bitcoins online without the fear of loss.

This Australian crypto exchange lets you track ads of people selling various cryptocurrencies. It does not impose national restrictions, and it is welcoming to foreign investors. 

The ease of use is phenomenal. You have over 40 payment options available, and you can use non-custodial wallets to enhance control over your financial assets.

LocalCryptos will charge you 0.75% in trading fees when you buy on its platform.

Parting Shot

Bitcoins are pseudo-anonymous, but most supporting services such as emails, banks, and custodial wallets require ID verification. Analysts just need to pick up your number or email address to reveal your identity.

Your best shot of buying bitcoins anonymously is through peer-to-peer exchanges. Sellers on these platforms are probably just as motivated as you are in seeking anonymity. 

No matter how anonymous websites selling bitcoins get, it beats the point if you use custodial wallets. Non-custodial bitcoin wallets don’t require your ID verification, but custodial wallets report to financial regulators.

Don’t get anonymous money and take it straight to the scrutiny of third-parties. Use non-custodial digital wallets with the best websites to buy bitcoins directly from your device, anonymously.

Do you know of other ways to buy bitcoins anonymously? Be kind enough to share your proven tricks with us in the comments section. Also, feel free to share this piece with loved ones who want to buy bitcoins anonymously.

Cryptocurrencies The World’s First Cross-Chain Money Market

As cryptocurrency use gains more popularity, so do the innovations around this space. Crypto enthusiasts are set to enjoy increased convenience and ease of use after Kava unveiled This cross-chain money market has a global reach, which makes it quite convenient for investors. is a fintech application built on top of Kava’s infrastructure, enabling users to borrow or lend cryptocurrencies across blockchains. It’s the first of its kind and is a premium feature of Kava 4 Gateway. 

It supports cross-chain transactions of BTC, BUSD, XRP, and Kava tokens. 

In this article, we shall explore the technologies behind, its history coming up, and some alternatives. It is worth noting that already rebranded to HARD, and its benefits accrue as fintech gains more users. Consolidating Markets for the First Time 

DeFi markets are fragmented, and crypto blockchains lacked interoperability until late 2020. came into the markets to resolve this problem.

The launch of Kava 4 Gateway in Oct 2020 ushered in a paradigm shift in the ease of use for crypto enthusiasts. It expanded Kava technologies into interoperability with BTC, XRP, and BUSD infrastructure. 

It also empowered users to expand assets without having to upgrade networks. was Kava 4 Gateway’s highlight, and it expanded the gains of DEXs. It’s making user-success more prevalent, and the masses are warming up to the ease of buying, selling, lending, and borrowing. 

It’s even sweeter considering that no third-party gets involved in any of the transactions, and the financial records are secure and irreversible. 

How Kava 4 Supports Cross-Chain Transactions

It’s simple how offers cross-chain interoperability, but the technology is proprietary. It builds cross-chain bridges and supports them with Chainlink Oracles. 

This fintech utilizes Kava’s:

  • Blockchain security. 
  • Price feed module.
  • Cross-chain functionality. 

The infrastructure is fast enough to attract new users. Unlike Bitcoin’s blockchain, the Kava networks build consensus through democratic validators. validators also vote on internal governance changes and implement system updates.

With Proof of Work, miners have to solve complex math problems, which makes them slower than Kava validators in authenticating and completing transactions. 

Interoperability: It’s Now A Crypto Reality

Interoperability refers to the ability of different computers, software, networks, and computing servers to exchange and apply data. 

Just five months after Kava launched, Kava accounts more than doubled, investors locked more than $25.65 million in value, and users borrowed $10.8 worth of USDX. Kava’s liquidity is rising exponentially. 

What Means for Investors

For starters, the fact it transitioned to HARD should motivate business minds that need to adapt and adopt investments in digital currencies. HARD makes it possible to trade and loan Stablecoins, KAVA tokens, BTC, XRP, ATOM, and BNB without involving third-parties.

HARD is the fintech that investors need to exploit the potential of cryptocurrencies. It empowers users to trade in a decentralized, convenient manner, and its interoperability makes it easier to access the most in-demand digital currencies. 

Blockchain Fintech Interoperability and Institutionalization

Crypto asset institutionalization will propel cryptocurrencies into the next step of global acceptance. However, institutionalization is still a long shot until certain factors are addressed. 

One of the biggest hurdles facing crypto-asset institutionalization is the lack of supporting services such as brokerages, exchanges, and asset management. takes care of the need for brokerages and third-party exchanges. Moreover, smart contracts are excellent upgrades for third-party asset management services. 

Institutionalization Takes More than Just Cross-Chain Money Markets

According to Binance CEO, Mr. Zhao, institutionalization and widespread use of Kava technologies need numerous synergies. He appreciates the milestone of developing cross-chain money markets. 

However, he asserts that the ecosystem needs other critical elements to be conducive for mass acceptance. For instance, he is wary about the ease of use in digital currency transactions. The major source of resistance springs from slow processing and the prevailing ignorance. 

In Nov 2020, Kava confirmed that HARD Protocol, previously, would be hosted on Binance’s Launchpool. The platform is designed to roll out DeFi to end-users. 

HARD allows users to stake BNB, KAVA tokens, and BUSD on separate slates. Kava Labs had to rename to HARD after launched. It was the best way to resolve the hard trademark conflict of interest. 

Other Blockchains Featuring Cross-Chain Interoperability

Equilibrium is a digital money market that powers cross-chain currency exchanges. It also allows users to use, earn, lend, borrow, stake, and fundraise crypto assets across various popular blockchains. 

This cross-chain money market platform is integrated on the Polkadot network. Its designers focused on enhancing scalability and reducing high transaction costs.

Why Is HARD Better?

HARD tokens empower users to determine how things go. Users build consensus in the management of key parameters and protocols i.e.: 

  1. Platform fees. 
  2. How assets are offered. 
  3. Reward systems.

Earlier blockchain users have lots of say and establish grassroots culture. Consensuses are irreversible, and HARD tokens are most lucrative now that they are still novel crypto assets. 

Remember, cross-chain money markets are picking up traction. Folks are finding it easier to use blockchain fintech because of innovations such as, which is built on Kava 4 Gateway. 

Parting Shot is a lucrative fintech for digital entrepreneurs. HARD technologies deliver reliability to users on a global scale, transcending above regulatory scrutiny. This DeFi fintech empowers users to determine the direction of the blockchain in a purely democratic fashion. 

Users can exchange and make use of information with other blockchain networks. It gives DeFi users access to borrowing and lending options for different cryptocurrencies, creating cross-chain money markets. Moreover, the tech is fast and secure. 

Take advantage of these innovations while they are new, and gain some control by making decisions while the platform is new. Check out HARD, and feel free to share your experience with cross-chain money markets in the comments section. 


 9 Best Blockchain Project Ideas for 2021

The blockchain market is estimated to exceed $39.7 billion by 2025, thanks to a growing need for smooth supplier management and simplified business operations. Blockchain promises secure data and easier recording of the transaction value. 

Since its introduction in 2009, blockchain has been a revelation for businesses looking to use technology to transform their current business model for more reliability, security, and transparency. Similar to 2020, blockchain technology is transitioning from the experimental stage to real business-ready solutions.

The adoption rate across different markets is expected to rise, and this presents a business opportunity. If you are looking to make your mark through blockchain technologies, then the following ideas will come in handy. 

Blockchain Digital Identity

Contemporary businesses often collect a lot of personal information, creating new business risks. Investments in powerful data vaults are not viable in the long run, as the tight-lipped systems can affect the drive for true customer understanding and product development. 

By 2025, the number of interconnected devices is estimated to rise to 22 billion. The majority of IoT technologies do not incorporate critical access and identity controls. There are already some major IT vendors providing IoT management systems to bridge the gap, but they often fall short.

The mismatching standards and hundreds of traditional servers make it complicated to implement management capabilities across devices. Blockchain promises practical solutions for interconnected devices.

The Distributed Ledger technology based on blockchain will ensure secure data storage in a tamper-proof, unified, and interoperable infrastructure. The benefit is a smooth and straightforward identification for employees and clients in some of the most sensitive industries. 

Blockchain digital identity is expected to improve manageability and control of personally identifiable information. So far, IBM and Accenture are some of the companies throwing their hat into the ring and already making significant progress with the blockchain digital identity project. 

Healthcare Medical Records Management

There are claims that blockchain technology can save billions in support function costs, staff costs, data breach, and IT-related costs in the healthcare industry.

A decentralized and secure blockchain-powered platform can support the storage and exchange of personal medical data. Hospital staff can then easily use the technology to update medical records.

One of the industry pioneers is Medicalchain, and they are already making significant progress, having signed a cooperation agreement with Mayo clinic. But still, the healthcare industry is largely uncharted territory, especially in the management of medical records, and therefore a great blockchain project idea for 2021. 

Stock Market Application 

The stock market has transformed many people’s lives and is an essential foundation for a country’s economy. It has its shortcomings, and the application of blockchain technology can significantly enhance its efficiency.

One area that blockchain can transform tremendously is the settlement process that every trade has to go through, which takes several days. The delays come from exchanges, clearinghouses, and regulatory processes. 

A blockchain system can potentially reduce the settlement process time to only a few minutes. The system is more efficient, and stock market trading will become more efficient with the advantage of decreasing errors.

A blockchain-based stock market application has the following advantages:

  • Easy to use
  • Enhanced transparency and fairness
  • Improved interoperability to increase trust
  • The clearing and settlement process becomes quick and easy
  • Risk containment mechanism

Logistics and Transport

Most of the logistics and supply chain systems are ineffective and outdated. Getting rid of intermediaries and improving transparency and efficiency in logistics can save companies millions of dollars.

Typically, a decentralized supply chain system that leverages blockchain technology and the Internet of Things (IoT) can improve transactions’ reliability and automate product traceability. Authentication for the transactions can be through blockchain to minimize errors and replace ineffective manual practices. The blockchain-enabled controls will reduce the chances of introducing counterfeit products into the supply chain, thereby ensuring integrity.

In transport, the blockchain technologies are scalable, immediate, easy to authenticate and track. With the blockchain’s help, businesses can easily track their truck components on a digital ledger for efficiency and reduced costs. The decentralized public ledger will record all adjustments in real-time and reduce clerical errors. 

The following factors are some of the things that make this an exciting blockchain project idea for 2021: 

  • Reduced transport costs
  • Easy documentation and coordination
  • Improved security and authentication
  • Quick and easy approval and clearance

Although companies such as Chronicled have already started the project in 2020, there is still much to do in logistics and supply chain management for 2021.

Decentralized Apps

Basing a business on Bitcoin (BTC) is not the wisest decision, as the system is vulnerable to high fees and instability. Currently, the BTC developers do not have a clear roadmap, which can sometimes affect the business model in the future. 

Decentralized applications (dApps) are based on blockchain and outside the control of a single entity. A standard web application such as Facebook runs on a computer system, where a single organization controls its backend. 

Building Dapps on Tezos and other smart contract platforms is a sensible thing to do to ensure business continuity. Beyond the control of a single entity, the decentralized environment is more transparent, secure, stable, and easier to use. The built-in medium of exchange in Dapps will potentially boost the adoption of cryptocurrencies.

As a result, many observers predict that Dapps will have an extensive global impact. 

Dapps are a viable project idea that you can sell to the numerous organizations and startups using bitcoin core and who seek stability for the future. 

Blockchain Consultancy

No doubt, the blockchain market is growing exponentially, and the need for a consultant increases by the day. In the following few years, more and more businesses will be lining up to leverage blockchain technology to stay relevant in the market. 

What makes it an excellent project idea for 2021 is the increasing number of businesses and individuals willing to listen to your blockchain project proposals. Unlike in the past, decision-makers in the business sector already know the benefits of blockchain and will be ready to hear how to make blockchain work for them.

There are various areas to specialize in as a blockchain consultant. For example, you can help strategize and develop a cryptocurrency community, airdrops, and logistics. Even though the industry is in its infancy, many businesses and people need help to leverage technology and ensure sustainability on-the-market. 

Voting Apps

The voting process, especially in developing countries, is usually a source of conflict that mostly erodes some of the gains made between the voting periods. The problem is generally tampering with the voting process and privacy.

Blockchain-based voting applications can streamline the voting process, protect critical data, reduce fraud, and enhance accountability. It can eliminate weaknesses that some proponents bank on to delegitimize the entire process while also maintaining the security of government and citizen’s data. 

Some of the benefits of a voting app blockchain project include:

  • Improved security and safety
  • Streamlined processes
  • Reduced redundancies
  • Improved integrity of the data
  • Cost reduction
  • Efficient process

Cryptocurrency Oracle

First conceived in the 1990s by researcher Nick Szabo, smart contracts have taken off with the advent of blockchain technology. The use of software and protocols to enforce an agreement’s performance or negotiation eliminates the need for laws or third parties. However, smart contracts are not sufficient on their own. Smart contracts need translator software to understand the terms, and that is where a cryptocurrency oracle comes in.

An oracle is a translator that provides critical data to trigger smart contracts after the original terms are met. The demand for the middleware software models is growing as businesses and governments implement blockchain platforms.

Apart from smart contracts, the other blockchain areas where oracle can prove useful include financial derivatives and betting. However, this is a very demanding project where you need to be a blockchain programming guru. 

Personal Finance Management

More than ever, people are focused on their finances and are taking action to ensure financial stability. A personal finance application has the potential to give businesses a fair amount of traction in an increasingly competitive market.

A blockchain-based app can easily categorize income and expenses in real-time and help manage finances. Such a system can easily connect with financial institutions to automatically update data and activate notifications.

What makes it a viable project idea for 2021 is its potential to help individuals take charge of their finances. Transparency, decreased error, traceability, and reconciliation are always welcome features in such a finance app. The added advantage of security and safety will significantly improve its standing. 

Final Thoughts

Like any other nascent technology, the early years of blockchain were characterized by growth spurts and evolving personality, much like a child that entered puberty. Blockchain , which just turned 11 a few weeks ago, is already exceeding expectations, which is more than you can expect from a technology still in its youth. The technology is now mature, and enterprise-ready solutions are hitting the market.

For the technically savvy, blockchain presents a golden opportunity for such projects as blockchain consultancy, stock market application, and decentralized apps. You can be part of the blockchain pioneers that create solutions with the capability to disrupt entire industries in 2021.

Crypto Daily Topic Cryptocurrencies

Bye Bye Libra, Hello Diem!

If you think Bitcoin had a controversial entry into the cryptocurrency scene, think Libra. Diem, previously Libra, hasn’t even entered the market, and it is already getting unpopular nicknames like Global coin and Facebook Coin. 

Names stick, and Diem is already in a sticky mess. This permission-based blockchain deservedly suffers an identity crisis because it packages centralized financial services as decentralized exchanges.

Initially, Libra was a blockchain-based payment system conceptualized for anonymity and decentralization. However, lawmakers in various developed nations like the UK, France, and the United States spoke against it. Some did so immediately after Facebook unveiled the Libra whitepaper.

Libra’s release was meant for 2020, but an aggressive push back from regulators in 2019 obscured the plans. Different entities fielded varying concerns addressing the Libra whitepaper, and the pressure pushed Facebook and its partners into drastic actions. Some partners left, leaving Libra with a looming identity crisis.

In this article, we discuss the rise and fall of the Libra Association. We are also looking into what Diem has to offer and how it’s evolved since conception. Stick around to learn the original Libra concept and why it rebranded to Diem to reduce Facebook stigma.

The Original Libra Concept

Facebook initiated and championed the formation of the Libra Association, and it always had a crypto tech in the works. The plan was to launch a stablecoin, which would be backed by a basket of national fiat currencies and securities.

The Libra stablecoin was designed to be more stable than any national currency, and Facebook would integrate it within its extensive social media coverage. Therefore, the cryptocurrency would be stabler than Bitcoin and enjoy undisputed, global utility. However, the grand scheme fell under siege the same day it was unveiled.

The Libra Association was to create new currency units on demand and retire units redeemed for fiat currency. It was also planning to reserve transactional data on the ledger for Libra Association members only.

Therefore, the blockchain technology wouldn’t be pure but a hybrid, centralized blockchain. The Libra Association reserved the distributed ledger’s reconciliation only to its service partners to prevent random data analysts from scrutinizing transactions.

Basically, Libra proposed a system where traditional blockchain transparency was obscured and reserved for its partners only. The pretext for shrouding the transparency was protecting customers’ privacy, but Mark Zuckerberg unsuccessfully tried convincing the Senate that Libra would honor users’ privacy.

Libra Couldn’t Address Trust and Privacy Issues

The Libra Association failed because of trying to appease both legislators and crypto purists. Revolutionary bitcoin users prefer permissionless cryptocurrencies, which transfer value in a decentralized fashion. Decentralized currencies can bypass regulatory enforcement.

Since Libra was not decentralized, it was to rely on trust, qualifying it as a ‘de facto central bank.’ The Libra Association and its network would be run by powerful corporations working in collaboration, and sovereign governments were concerned the Libra currency would cause widespread economic instability.  

Unlike Libra, Bitcoin is apolitical, and it doesn’t need the backing of fiat currency. Bitcoin is designed to withstand the regulatory scrutiny that seems to be putting down Libra, and the pure blockchain network is trusted worldwide for its anonymity.

Remember, nobody really knows who created Bitcoin.

Libra is not censorship-resistant, and Facebook is infamous for infringing on users’ privacy. This social media platform was subject to Senate and Judiciary inquiries, and it was scandalized for abusing the privacy rights of billions of users.

International Regulatory Resistance: Why Are Governments Fighting Libra?

The French Finance Minister was the first to raise concerns over Libra, just minutes after the whitepaper became public. France strongly opposed Libra becoming a sovereign currency, and the ministry cited privacy issues and consumer protectionism.

The English central Bank was a bit more accommodating, but it called for regulation of the proposed permission-based cryptocurrency. German lawmakers took a more cautious approach, distrusting the motives of the currency.

The European Union didn’t want Libra outcompeting European currencies, mainly because Facebook has a firm marketing grip globally.

American politicians were also quick to thwart efforts of rolling out the proposed Libra Network. The United States House Committee on Financial Services directed Facebook and its partners to stop developing Libra.

The Federal Reserve, the President, Congress, and the Senate had severe concerns regarding money laundering, economic stability, national security, and privacy & consumer protection. 

In response to the sharp criticisms and widespread distrust, Facebook promised to halt Libra until regulators felt comfortable. C.E.O Zuckerberg also promised Libra wouldn’t bypass US regulators by launching in other nations.

Facebook’s lousy rapport with regulators over privacy and consumer protection took a toll on Libra. US regulators petitioned Libra partners to explain how the currency would safeguard national security, and the following partners consequently abandoned Libra:

  • PayPal
  • Visa
  • MasterCard
  • Mercado Pago
  • Booking Holdings
  • eBay
  • Stripe

Libra received overwhelming lousy press, and it acquired negative connotations such as:

  • Facebook coin: Libra partners were afraid they’d be considered complacent in privacy violations.
  • Global coin: Governments were afraid Libra would overtake national currencies with FB’s robust marketing capacity, undermining national security.

Libra Rebranding to Diem: the Fundamental Changes

Facebook had to address structural and branding issues with Libra. The designers of this digital currency made critical changes to attract regulatory approval. The most fundamental of all changes was liberating the cryptocurrency from Facebook.

Facebook and the Libra Association announced Libra would rebrand to Diem, and the currency would not compete with fiat currencies. Instead, Diem would only complement the dollar, and it would also abandon the strategy of stabilizing behind a basket of various national currencies.

Facebook first renamed its blockchain subsidiary to Novi from Calibra. Novi is Greek for ‘new way.’

Diem was also meant to give this digital currency the connotation of transparency. Diem is Greek for the word ‘day,’ and the network promises the transparency of daylight. If only it can earn the trust of governments and safeguard the privacy of users.

Apart from repairing brand image, the Libra Association had to rebrand because of trademark disputes with other international firms. Finco sued the Libra Association in a New York court for using its registered logo trademark, and the company claimed monetary damages from the Libra Association.

Four European companies also petitioned against the Libra trademark, arguing Libra was a current form of their verbal brands.

Parting Shot

This hybrid cryptocurrency is controversial because of its hybrid nature, but mainly due to Facebook’s robust marketing reach. Diem will likely revolutionize crypto assets significantly because of its permission-based blockchain. That’s why you should understand this proposed fintech.

Diem will only be backed by the dollar. It will offer widespread adoption of cryptocurrencies. This currency will combine the transparency and security of blockchains, and users can make secure global transactions.

This proposed digital has significant potential, and you should share your thoughts in the comments section. Do you have any concerns that the Diem Association needs to address? Let’s discuss.


5 Best Staking Coins in 2020: Checking Out Number 4

Investors stake their cryptocurrencies by locking their assets for the reward incentives. Staking is similar to saving in banks because users lock their money in preferred financial services, but crypto staking earns higher ROI than fiat savings in banks. 

Staking is an innovation that allows users to reap maximum gains from their digital investments. Users can earn passively when their nodes validate and add blocks to blockchain networks.

Staking coins utilize a special, more user-friendly blockchain consensus for mining cryptocurrencies called Proof of Stake. In this article, we take a look at five of the best staking coins in 2020 you need to check out. But first, let’s get into the nitty-gritty details of the mining consensus. 

Proof of Stake vs. Proof of Work

Traditional Proof of Work (PoW) validates blocks of transaction information via complex cryptographic computing that generates consensus. In contrast, Proof of Stake (PoS) relies on democratic, open-source electioneering to select validating nodes for every block.

PoW rewards miners for solving mathematical problems with newly created crypto tokens, while PoS rewards validators with transaction fees. PoS systems select random users in the blockchains, making the networks impressively secure.

Proof of Stake systems start by selling a stock of pre-mined coins, and others switch from PoW systems. The switching process is called forging, and it includes locking coins in stakes. The size of each stake determines if it’s viable for validating the next block. Robust stakes have a more competitive advantage.

Nodes forge blocks by first authenticating transactions to match details on previous information blocks. Designers had to address the concern that wealthier nodes could get all the staking bids. Therefore, crypto startups implement:

  • Coinage selection: this strategy considers how long users lock their coins in stake. Coinage is determined by the number of coins multiplied by the period of stake. Coinage is reset to zero after forging, and networks stipulate minimum coinages for staking. This way, nodes with large stakes don’t get dominant control over the network.
  • Randomized block selection: this strategy is predictable, but it provides sufficient protection from corruption. The system selects validating nodes transparently via stake sizes and hash values.

Now, without further ado, let’s review the best staking coins in 2020 worth your time and fiscal investment. 

Best Five Staking Coins in 2020

NOW Token

This digital asset is native to ChangeNOW, a robust crypto exchange platform. The staking coin empowers users to buy numerous products within the NOW infrastructure.

The staking rewards are annual, and staking longer rewards more. You can lock as little as 10 NOW tokens and manage these digital assets via:

  • Token Freezer.
  • Guarda Wallets staking tools.
  • BEPTools.

The tool you use to freeze your tokens will automatically predict your rewards every week. Users stand to gain significantly by staking NOW tokens, yielding high interests, weekly rewards, and demanding little principal investments.

Decred (DCR)

This staking coin was announced in 2016, and it forked from Bitcoin. The designers, miners, and validators disagreed with internal Bitcoin governance. Therefore, they created this hybrid coin, which is powered by both PoW and PoS mechanisms.

The Decred platform makes DCR tokens attractive via:

  • Smart contracts.
  • Public proposal platform.
  • Cross-platform wallets.
  • Cross-chain atomic swaps.

Decred PoW/PoS mechanisms require miners to build new blocks by validating transactions. The miners earn 60 percent of block rewards, and DCR holders can obtain voting tickets for all open network proposals.

You can stake DCR in two ways:

  • As a solo voter.
  • Through voting service providers.

When voting solo, you need to use the native command line and connect your wallet to Decred’s blockchain. Voting service providers charge about five percent of rewards for staking on behalf of users.

It supports user democracy, empowering network members to vote for consensus. However, much like Bitcoin, Decred can’t scale easily, and it falls behind in transaction speeds.

Tezos (XTZ)

This cryptocurrency is novel compared to others since it was launched in June 2020. It serves multi-purposes and is reliable for executing smart contracts. It is the native coin of a self-correc platform.

The Tezos blockchain utilizes a unique codebase, using the OCaml computer language. Its PoS consensus implements delegated Liquid Proof of Stake.

XTZ is popular because it offers high staking to third-parties, who claim up to 25 percent of staking rewards. The 2020 ROI for staking Tezos is 5-6%. It is stabilized by its codebase, which allows self-correcting and built-in governance. Thus, it minimizes the risk of hard forks like the case of Bitcoin’s blockchain.

Tezos are created via ‘baking,’ which is just another name for staking. Validators allowing fraudulent transactions are to lose all their staked Tezos immediately the incorruptible blockchain flags incorrect validating. This is significant because bakers must have 8,000 Tezos to stake.

Algorand (ALGO)

ALGO is permissionless and decentralized. It transcends bordered economies and bypasses the need for financial regulators and other third-parties. ALGOs are great staking coins because of the low transaction costs involved.

This coin is native to the Algorand network, which utilizes Pure Proof of Stake to validate transactions. It does not facilitate users to delegate staking responsibilities to other nodes.

This blockchain reduces the risk of dominant users taking over. It decentralizes the network and disallows staking delegations. Thus, it reserves the voting power for the majority’s interests. Staking ALHGOs is relatively easy, and you only need a non-custodial wallet to hold ALGO tokens.

Just one ALGO is enough for staking. Users can earn ten percent annual interest, 5.46% staking on, or eight percent on Binance. Algorand facilitates 1,000 transactions per second, attracting them because of easy user experiences. Staking rewards are paid out every 20 minutes.

Loom Network (LOOM)

The Loom Network is a Platform as a Service meant for dApp developers. It supports Solidarity dApps running on side chains of the crypto network. This platform allows different application developers to personalize their consensus-building mechanisms.

Validating Loom transactions is easy, and users can rely on Delegated Proof of Stake. Scaling becomes easier, but users still enjoy Ethereum’s blockchain security.

These staking coins come into the market in 2018, but users started staking LOOM tokens a year later. By 2020, the Loom Basechain bridged different chains via impeccably high performance.

Cross-chain functionality makes LOOMs attractive stake coins. Developers use this Platform as a Service network to pay for hosting, and staking users can enjoy the rewards of creating new blocks.

All you need is one of the following wallets that are compatible with Loom’s blockchain:

  • Trezor.
  • Metamask.
  • Ledger.

Users must meet gas costs on the Ethereum network by depositing some ETH. Afterward, they need to connect their wallets to the LOOM Basechain Wallet for staking.

This network is popular because you can delegate staking to validators, who will claim 25% of your stake rewards. You can expect an annual ROI of 17% from LOOM stakes.

Parting Shot

Let’s agree that these coins are all pretty attractive investment options. Their main benefits include:

  1. Fast delivery.
  2. Lucrative ROI.
  3. Transparent, immutable accounting.
  4. Daily and annual payouts.

Validators are much quicker than bitcoin miners, which makes staking coins appealing to novice users. 

Staking crypto coins is a great investment option for crypto users. It makes it easier to earn high-interest rates on your savings, and you can conveniently, securely convert fiat currency into digital currencies. 

Embrace staking coins as crypto asset institutionalization edges closer to reality. The next time your friends ask for a great investment idea, share this article with them. 

You can also check out these coins for yourself and start earning passively. Please share your best staking coins in the comments section. 

Crypto Daily Topic

Platforms You Should Join to Avoid Falling for Defi Scams

Scammers couldn’t have found a better place to thrive. What with decentralization, the anonymity of transactions, and a lack of regulation characterizing the space? 

Despite its positives, the Defi sector is a jungle that readily swallows the unknowing. Navigating it requires heart, but more than that, tact. Identifying the snares and how to avoid them is the key to profitable investments in the sector.

2020 has witnessed a burgeoning of Defi projects offering their services and products. A good number of these are dubious, itching for an opportunity to rob you of your funds. 

How then are these fraudulent schemes perpetrated? Is there a way of identifying them? What measures can one take to protect themselves from falling victim to them? Are there platforms to guide investors in determining the genuine from fake projects? 

This article hopes to build your capacity to make informed decisions within the space by answering these questions.

How Do Scammers Carry out their Activities on Defi platforms?

Scams are as varied as there are scammers. Here are a few of their favored methods of execution.

  • Exit Scams

An exit scam is a scheme hatched by unscrupulous crypto promoters to defraud the public of their funds. They dupe investors by setting up a project with an attractive concept. After collecting funds from the ICO, the perpetrators evaporate with the funds leaving the investors in limbo. In 2020, for instance, YFDEX.Finance conned investors of $20 million in just two days of operating.

  • Pump and Dump

Pump and dump schemes involve artificially pushing the demand for a given token. A small group of whales identifies and purchases a token with low value. Their action causes the token’s prices to appreciate. This price hike draws other investors to acquire the token hoping for gain. On the price reaching a certain level, the whales dispose of their holdings at a profit. Thus, the prices plunge, leaving investors with hefty losses.

  • Admin Imitator

Using a social media platform, for instance, Twitter, Telegram, or Discord, a scammer impersonates a Defi Platform’s support team member. The scammer used credentials similar to the platform’s admin. They then ask either for private keys to resolve specific issues. Alternatively, they may require members to send ETH to a given address to complete their scam.

  • Fake Airdrops and Rewards

Airdrops and giveaways help. Defi platforms raise awareness about their platforms. Also, they increase community participation. At times scammers may provide fake Airdrops and reward to access private keys and personal info. They then use these to defraud you of your funds.

  • Defi Rug Pulls

Defi rug-pulls are con games that involve minting new tokens and publicizing them, primarily via social media. After that, the project lists on Uniswap, and owners inject liquidity. The unsuspecting investors will swap their ETH for the new token. The instigators then drain the liquidity pool. This way, they make away with the funds leaving holders with worthless coins.

  • Hardware Wallet Theft

Another scam involves selling users compromised hardware wallets. Their setup creates backdoors allowing hackers to drain one’s funds.  

How do you Identify Scam on Defi?

As the Defi sector is replete with scams, knowing how to identify them becomes an essential skill. Here are a few pointers:

  • Their Offering- Genuine projects have unique products tailored towards specific pain points, doubtful projects, on the contrary, piggyback on successful projects’ products.
  • Development- Are the developers continuously updating the code? If not, it could be a scam.
  • The founders- Are they known? What’s their reputation within the crypto space? Shady projects will have shady frontmen too.
  • Tokenomics- How is the token distributed? Scams typically inflate the token price while holding a majority of the token.
  • Language Use- If they use complex Defi jargon, it’s possibly a scam; legit projects use simple language.
  • Promised Returns- If the deal is too good to be true, think twice before committing.

5 Best Platforms to Sign Up For to Avoid DeFi Scams

The security of your funds could be a sign up away. The rise of Defi Scams has resulted in the emergence of platforms to protect users in the ecosystem. These platforms take it upon themselves to detect scams so that you don’t have to. Here’s your must sign up to platforms to avoid Defi scams

LID Protocol’s LIFTOFF

LIFTOFF is a platform that uses LID Protocol’s Certified Presales service to protect investors and projects. The service facilitates projects to raise funds. When they meet their targets, a smart contract locks the raised funds and tokens on Uniswap or other lending protocols. 

Once the presale concludes, it mints the liquidity pool tokens and burns them. Thus, it permanently locks the liquidity on the lending protocol preventing the occurrence of rug-pull scams. 


This China-based company is a market leader in blockchain security. Besides serving over 70 DEXs, 110 wallet providers, and 40 blockchain firms, it supports more than 800 tokens. It audits these projects’ security systems and smart contracts. 

SlowMist made headlines when it raised the alarm over an impending $2.5 million DeFi exit scam by Emerald Mine (EMD). The platform had transferred to a private account a vast chunk of tokens that users had staked.


PeckShield is another Chinese blockchain security company that strives to enhance blockchain security and usability. It produces cutting edge products targeting large scale systems. It reports on hidden vulnerabilities within networks. 

Additionally, it creates products and services to counter these vulnerabilities. PeckShield also flagged the Emerald Mine exit scam.

Blockchain Audit

This New York-based firm does more than build secure decentralized systems. It also audits Blockchains and reports on different projects’ states of security. Blockchain helps identify counterfeits, bullwhip effects, and fake reviews, among others. 

Again, it is a good source of information on upcoming projects and their security.


KryptoGO develops advanced blockchain solutions and offers consultancy services through linking projects with experts on various issues. It also undertakes audits besides reporting on different projects. 

Hence, it’s a valuable source of information for anyone researching a project of interest.

What to do to Protect Yourself from Scams?

To protect yourself against being scammed:

  • Do your research on the project before investing
  • Seek expert opinion on the project
  • Avoid sharing your private keys and personal information
  • Only get your hard wallets from legit outlets
  • Sign up to a platform that analyses Defi projects and trends

Final Thoughts

The Defi sector crawls with nefarious schemes. Consequently, it behooves every investor to be awake to this reality. Scammers have devised different ways of actualizing their goals. As such, knowing how to identify scam projects from the rest is critical. 

Simple actions like digging into the founder’s background, examining the project’s development history and its token structure can avert huge losses. Additionally, signing up to platforms like the ones identified here will guarantee you a safe investing experience.

Crypto Daily Topic Cryptocurrencies

DeFi Investing 101: A Complete Beginners Guide 

The crypto space is decorated with exciting projects. In the year 2020, however, none has caught the eye as much as DeFi has. DeFi is an acronym for decentralized finance, several protocols geared towards providing financial services while eliminating a central governing authority from transactions.

In the last year alone, the total value locked in DeFi funds has grown from $850 million to stand at $14.9 billion as of 15th December. This growth is indicative of the rising appetite for investments in the sector. The excitement that DeFi has created is pulsating; it almost sucks you in. Doesn’t it?

But as a newbie, should you take the plunge? What are the investment options available to you? Are there any pitfalls you should be wary of? If you’ve asked any or all of these questions and are reading this, then you’re in the right place. Today we journey through DeFi, providing a few pointers to help you along your investment journey.

Is DeFi Worth the Hype?

The kind of interest generated by DeFi speaks volumes about the sector’s potential. But what benefits does one derive from investing in the industry? The following are a few reasons why DeFi is attractive: 

  • Accessibility – DeFi products are available to anyone whenever they may be; with an internet connection, one is good to go.
  • Autonomy – through the elimination of central authorities, DeFi gives the users control over their financial activity.
  • Transparency – all transactions take place over the Ethereum blockchain enabling their public scrutiny before verification.
  • Higher returns- because of the attendant risk, the DeFi sector offers higher ROIs than legacy financial institutions.
  • Increased liquidity of illiquid assets- tokenization enables the representation of previously illiquid assets on the Blockchain enabling their easy transference.
  • Faster transactions – DeFi platforms allow for real-time P2P transactions saving time.
  • Affordable – DeFi platforms eliminate intermediaries from fees cutting transaction costs significantly
  • Borderless- DeFi allows seamless Cross-border transactions anytime, any day

What are The DeFi Investment Options Available to a Beginner?

The DeFi Sector replicates the functions of the traditional financial systems in a decentralized manner. Scanning through the sector reveals rich products for the interested investor. To the newbie, investing within the space need not be a chore. Here are a few easy pickings to set you off on your investment journey:

Decentralized Lending and Borrowing

Open lending protocols dot the DeFi landscape. These allow users with extra liquidity to loan it out to others in need of it. It works in similar ways to conventional lending. The only point of departure is that DeFi lending eliminates central authorities and intermediaries from the transactions.

Providing Credit through Smart Contracts and DApps

Smart contracts and DApps enable P2P interactions between lenders and borrowers. These tools spell out the terms of credit and repayment. Once the borrower complies with them, the platform automatically disburses the funds to their wallets. 

Collateralization is Key

They, however, have to provide collateral in the form of tokens. If they default on their obligations, they cede ownership of the tokenized asset to the lender.

Yield Farming

Yield farming is also liquidity mining. It is the provision of liquidity to a Decentralized Exchange (DEX) for a reward. At the center of yield, farming are liquidity pools, which are pools of tokens governed by a smart contract. They facilitate transactions over a DEX by providing the required capital. These rewards create extra income streams for the investor.

Rewarding Contribution

Investors who contribute to liquidity pools are known as liquidity providers (LPs). They can draw profit in two ways. First, they get token rewards for funding the pool. The rewards are an incentive to keep their funds within it. These rewards help to build up one’s total holding within an ecosystem.

Decentralizing Governance

Additionally, protocols may reward their investors with governance tokens. These tokens are essential in ensuring that the platform decentralizes fully. Developers may issue the tokens in several ways:

  • Through listing 
  • Distributing a share of the tokens to their founding community members before listing
  • Rewarding LPs with governance tokens besides the yield rates

Distribution of Fees

Secondly, the liquidity providers share fees that their pool attracts. DEXs mostly use the Automatic Market Maker(AMM) approach. AMMs allow P2P token trades within the liquidity pool Users pay fees- for instance, it is 0.3% of the transaction value on Uniswap– to complete their transactions. The AMM collects all the fees and distributes them to the LPs as a reward. 

Trading Over a DEX

The Decentralized Exchange (DEX) is an essential cog for the running of the DeFi protocols. They enable P2P transactions occurring in the space. There are different trading and, therefore, investment strategies one may adopt. Here we focus on a couple:

Margin Trading

Margin trading involves trading a financial asset using credit obtained from an AMM. The financial assets provide the collateral for the loan taken. After trading, they pay back the loan plus fees and keep the difference as profit. In case of a loss, the protocol will deduct the loan and expenses first. One should therefore exercise caution trading this way as they could lose the collateral.

Synthetic Assets

Synthetic assets are token representations of derivatives. These assets allow the tokenization of real-life assets, for example, property hence their trading on the Blockchain. Without them(synthetic assets), they would remain illiquid. 

No-Loss Games and Lotteries

Among DeFi s wide gamut of attractive services are games and lotteries. A good example is the PoolTogether game. It’s some risk-free lottery. Here investors put their funds in a shared pot. One participant wins the profit accruing, while the rest get their funds back.

Should I be Concerned About My Investing in DeFi?

Despite its attractiveness, the DeFi sector is still in its infancy. As such, it is essential to approach investments within it cautiously. Let us now shift our attention to a few concerns besetting the sector.

  • Price fluctuations – the cryptosphere as a whole is very volatile; the value of tokens and coins can spectacularly appreciate and depreciate in equal measure resulting in untold losses.
  • Scalability issues – Even with the implementation of Ethereum 2.0, there’s lingering skepticism that the sector can handle bulk transactions at a go.
  • Smart contract vulnerabilities – hackers have on occasions exploited vulnerabilities in some smart contracts to steal from DEXs.
  • Lower liquidity compared to the traditional financial systems – even though the sector shows so much promise, its TVL pales compared to the liquidity held by mainstream finance globally.
  • Over- collateralization of credit – borrowers have to stake an asset of higher value than the loans they qualify for

Stick To The Following, and You’ll Be Fine

By now, you’re getting the hang of DeFi investments. Now let’s look at some of the best practices to guarantee you a fulfilling investment journey:

i) Be Thorough in Your Research

Don’t take anyone’s word blindly. It’s good to listen to others but folks that up with your research about the market. This way, you can determine if any token is worth the time and money. It’s critical to examine:

  • The token distribution,
  • The team behind the project, 
  • The word on the street concerning the project
  • Partnerships the project has drawn
  • Its roadmap to implementation

The above scrutiny enables you to understand how trustworthy the project is.

ii) Spot the Opportunities

After verifying the project’s authenticity, the next step is to determine the most profitable tokens. Participating in the initial funding rounds enables you to acquire tokens affordably, enhancing your chance to turn positive returns.

Again it is essential to look at projects launching under unique funding models. Traditionally, such projects have generated a handsome profit for investors.

iii) Manage Your Risk 

After identifying the ideal project, now comes the actual investing. You then proceed to find an exchange that supports the trading pair that interests you.

Proceed to place your order and set your desired stop loss value. Consider initiating a trailing stop order. You can use it to maintain the stop loss as the asset appreciates.

Final Thoughts

The DeFi sector continues to grow, buoyed by the rising demand for its products. This growth comes with many different opportunities for any crypto enthusiasts. Compared to traditional financial systems, DeFi offers convenience, practicality, and affordable transactions. 

Additionally, it provides better ROIs than conventional financial systems. It’s easy to see why they could take any beginner’s fancy. That said, you should exercise prudence in your investment choices as they impact your venture’s profitability.

This article has traversed investments in the DeFi sector. It arms any newbie with the fundamentals that, if adhered to, will make their foray into DeFi a fulfilling one.


How Defi will Help To Bank The Unbanked

The statics couldn’t paint a grimmer picture. According to the World Bank’s findex report of 2017, up to 1.7 Billion people are either unbanked or underbanked. They, for the most part, cannot access financial services. Where they do, it is inadequate for their needs. As access to financial services impacts poverty reduction, this statistic makes for sad reading. We need urgent interventions to remedy the situation.

So how then do we increase this access? The financial space continues to pursue interventions that’ll expand the reach of its services. One such intervention is Decentralized finance (Defi), a  product that promises to disrupt the financial landscape. In this article, we discuss the role of Defi in enhancing financial inclusion. First off, though, a look at the global state of the unbanked.

Banking the Unbanked is more than a third world issue

Banking the unbanked is a problem for the LDCs, right? Well, not exactly. It is easy to assume that underdevelopment confines it to developing nations. Statistics do, however, tell a different story. Ironical as it sounds, a significant population in the developed world suffers the same problem. In the US, for instance, up to 25% of its households do not have access to banking fàcilities. To effectively tackle the issue, there’s a need for a broader perspective.

How is Defi a Solution to the Challenges of Realising Financial Inclusion?

Defi exploits gaps in the traditional financial system. Chiefly it seems to expand access to financial services. It does so in the following ways.

i) Eliminates the Need for Brick and Mortar Facilities

Despite the adoption of tech, legacy financial institutions still depend on brick and mortar premises. Setting up a physical branch network is expensive. Banks may, therefore, not feel compelled to establish these everywhere.

Furthermore, some regions are far-flung. Banks might, therefore, deem it unprofitable to invest in them. These reasons and others prevent many from enjoying financial services. Defi could be the remedy for such.

Digitalization of Transactions Expands Access

As stated earlier, Defi dispenses off with the need for physical premises. It runs on the Blockchain. Consequently, it digitalizes every financial function. 

This way, it expands financial services to the remotest of places. Hence it allows the hitherto unserved segments the enjoyment of these services.

A good Internet Connection is all One Needs

A reliable internet connection is all one requires to get set. Using devices such as phones, customers can:

  • Open accounts
  • Deposit and withdraw funds from their accounts
  • Make payments for goods and services
  • Make P2P funds transfers

Cross-segment Solutions

There are solutions for every income segment. High-end customers may use in-phone apps, offline codes, and QR codes to transact. The lower segments can use SMS.

ii) Lowers the transaction Costs

High transaction costs discourage entry into the financial sector. The decentralization of finance allows P2P trading. Deploying dApps and smart contracts eliminate intermediaries. These attract transaction fees per transaction. Their removal significantly lowers or eliminates costs. As such, it spurs demand and use of financial services.

iii) Enhances Access to Credit Through P2P lending and Non-collateralized loans

Many of the Unbanked find it difficult to attract credit. Normally, banks consider them a high-risk refusing to lend them. They require them to put up collateral that is often not available. Their perceived high-risk profile means that the banks price their loans higher than their peers.

Defi programs provide ways out for them. They incorporate crowdfunding and P2P lending.  Anyone can easily get credit in these ways. 

Additionally, repayment rates are affordable. Again, lending proceeds regardless of one’s credit score

iv) Allows the Entry of Undocumented Person’s

Banks require documentation for one to open an account. These may not be readily available for one reason or another. Inability to produce them leads to denial of service.

Defi, on the other hand, insists on the autonomy and privacy of users. As such, they have relaxed KYC requirements. This is in keeping with the true nature of distributed ledger technologies. Less stringent KYC requirements enable a higher uptake of financial services.

v) Round The Clock Transactions

Using the Blockchain, one can transact at any time from anywhere. You needn’t worry that the bank is closed for the day, weekend, or holiday. Even with the incorporation of tech, legacy financial institutions run by the workweek and hours. Certain transactions cannot go on past the work hours or days. This feature is a drawback, especially in emergency cases. Defi provides customers with the convenience to transact at the times of their choice.

vi) Interoperability of Functions

Defi allows cross-platform convergence. Through Cross-chain composability, two or more Blockchains can communicate with each other. The convergence enables seamless transfer of digital assets between them. 

Significance of Cross-chain Composability

Cross-chain composability is significant in that:

  • Users needn’t migrate from their networks to other compatible one’s to execute transactions
  • It cuts down on transaction costs
  • Enables near-instant transfers

On the flip side, banks tend to have differentiated products. Often this differentiation prevents convergence. It is, at times, impossible to carry out certain transactions across networks. Even when this is possible, the process is lengthy and costly.

Final Thoughts

The financial sector evolves rapidly. Players within the space continue to innovate to improve customer experiences. Some of these inventions aim at easing the accessibility of services offered. That said, the current financial systems are inadequate. To date, a significant portion of the global population remains unserved. Considering the correlation between poverty reduction and financial access, this reality is telling. We need solutions to expanding financial inclusion, and on this score, Decentralized finance offers much promise. Increased adoption will radically alter the financial landscape bringing financial services to more people.