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.

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.

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, Bitcoinpaperwallet.com, 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!

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

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, JD.com, 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

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

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.

USA 

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.

Takeaway

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.

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

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

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

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.

MakerDAO

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

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

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. 

CryptoKitties

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

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

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.

Bottomline

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. 

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? 

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 cabal.chat 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. 

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.

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. 

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.

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!

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. 

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. 

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.