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

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

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

Blue wallet key features

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

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

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

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

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

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

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

Blue wallet security features

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

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

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

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

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

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

Blue Wallet’s supported currencies

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

How to set up and activate the Blue Wallet crypto app

Step 1: Download and install the blue wallet app

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

Step 2: Create a Wallet

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

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

Step 3: Create a password for the wallet

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

Step 4: Back Up Your Recovery Phrase

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

Step 5: Complete the Set-Up 

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

How to add/receive cryptos into your Blue wallet

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

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

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

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

How to send cryptos using your blue wallet

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

Step 2: Click on the cryptocurrency you wish to send

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

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

Blues Wallet ease of use

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

Blue wallet cost and fees

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

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

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

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

Blue wallet customer support

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

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

What are the pros and cons of Blue wallet


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


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

Comparing Blue wallet with other crypto wallet apps

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

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

Verdict: Is blue crypto wallet safe? 

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


Incredible Ways to Earn Passive Income from DeFi

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

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

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

Income Generating DeFi Products

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

  • Liquidity Mining 
  • Staking
  • Yield Farming

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

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

Liquidity Mining

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

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

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


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

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

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

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

Yield Farming

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

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

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

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

Best Platforms for Passive DeFi Income

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


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

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


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


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

Parting Shot

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

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

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


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

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

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

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

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

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

Similarities Between the 2017 and 2020 Bitcoin Bull Run

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

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

A Strong Uptrend

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

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

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

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

Player Psychology

The player psychology remains unchanged through different eras. 

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

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

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

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

Google Trends

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

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

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

Multi-level Marketing (MLM)

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

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

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

Dissimilarities Between the Two Bull Runs

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

Market Background

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

There’s more. 

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

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

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

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

Growing Adoption

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

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

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

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

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

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

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

Project Focus

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

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

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

Binance and Stablecoins

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

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

Institutional Demand 

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

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

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

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

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

Final Thoughts

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

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

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

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



How Can Small Businesses Benefit From Accepting Crypto Payments?

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

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

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

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

Preventing Fraud

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

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

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

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

Streamlining Transactions

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

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

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

Attracting New Customers

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

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

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

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

Lowering The Transaction Costs

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

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

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

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

Eliminating Chargebacks

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

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

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

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

Expanding Market Reach and Sales

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

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

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

Brand Publicity

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

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

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

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

Reducing the Volume of Abandoned Shopping Carts

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

Off-putting won’t you say?

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

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

Personalized Tokens 

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

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

Are There Downsides To Crypto Payments?

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

For one, they’re highly volatile.

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

Final Thoughts

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



7 Countries That Are Betting on Decentralized Technology

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

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

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

A Promise of The Future in Decentralized Technology

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

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

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

Countries Looking Vouching for Blockchain Technology

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

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


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

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

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

Dubai (UAE)

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

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


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

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


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

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

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

South Africa

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

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


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

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

Latin America

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

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

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


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

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

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



6 Practical Tips to Protect Your Anonymity in the Crypto Space

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

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

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

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

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

Use the Best Software Wallet

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

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

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

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

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

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

Mix Your Bitcoins Using a Mixer/Tumbler

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

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

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

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

Sign Up for Cryptocurrency Exchanges without KYC Verification

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

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

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

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

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

Get a Dedicated PC and a Secure Network

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

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

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

Take Advantage of Escrow Services

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

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

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

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

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

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

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

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

Final Thoughts

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

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

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

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

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

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


6 Best Cryptocurrency Data APIs for 2021

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

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

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

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

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

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

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

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

Crypto Pro

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

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

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

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

Binance: Best Overall

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

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

LunarCRUSH for Social Listening

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

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


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

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

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


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

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

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

KryptoGraphe for Insightful Investments

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

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

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

Parting Shot

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

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



What Are The Top 10 Ethereum Dapps?

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

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

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

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


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

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

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

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


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

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

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

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

Yearn Finance

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

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

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


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

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

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

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


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

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

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

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


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

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

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


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

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

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


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

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


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

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

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


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

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

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


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

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


USDT vs. USDC: Which one has Better ROI?

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

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

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

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

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

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

Investing in Stablecoins: What You Need to Know

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

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

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

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

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

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

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

Stablecoin Staking

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

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

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

Crypto Loan Company

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

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

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

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

Blockchain Lending

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

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

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

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

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

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

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

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

Final Thoughts 

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

Introducing DChat

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

So what is DChat?

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

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

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

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

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

Universal Chat

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

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

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

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

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

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

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

Data Safety and Messaging Privacy

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

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

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

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

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

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

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

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

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

Final Thoughts

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

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

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


How to Perform Fundamental Analysis on Digital Assets?

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

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

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

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

  • Technical analysis.
  • Fundamental analysis.

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

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

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

The Importance of an Analytical Approach

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

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

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

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

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

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

Evaluate the Utility Value

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

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

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

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

Scrutinize Its Market Cap

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

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

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

Consider the Regulatory Background

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

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

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

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

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

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

Check the Coin Supply

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

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

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

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

Interrogate Whitepaper Roadmap by Comparing It against Age and History

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

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

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

Measure Trade Volumes

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

Parting Shot

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

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

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

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



Are Privacy Wallets Really Private in 2021?

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

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

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

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

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

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

How is Blockchain Transparency Bad for Privacy?

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

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

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

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

The Advantages of Privacy Wallets

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

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

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

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

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

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

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

Implications of the Proposed Financial Crimes Enforcement Network on Privacy Wallets

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

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

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

The Fundamental Flow with Ignorant Regulations

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

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

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

Parting Shot

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

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

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



Top 5 Crypto Loan Services with Lowest Interests

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

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

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

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

Understanding Crypto Loans 

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

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

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

Common Cryptocurrencies to Use as Collateral

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

Bitcoin (BTC)

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

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

Ether (ETH)

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

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

Top Lending and Borrowing Platforms with The Lowest APR

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

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

1. Crypterium

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

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

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

2. dYdX

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

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

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

3. Celsius Network

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

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

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

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

4. Nuo Network

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

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

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

5. Compound Finance

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

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

The Future of Crypto Loans 

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

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


Top 5 Biggest Mistakes in Crypto Technical Analysis 

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

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

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

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

Let’s dive right into it, shall we? 

1. Reliance on Low Time Frames

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

Tunnelling the Vision

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

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

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

Effects of Time Frame on Price Action

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

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

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

Go Big to Go Small

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

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

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

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

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

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

3. Seeking Signals

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

No, Don’t Follow Your Heart!

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

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

In Technical Analysis, Patience is Key

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

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

4. Misapplication of Indicators

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

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

Underutilisation of Indicators 

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

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

Single Indicator Dependence

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

Indicator Overkill

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

Misaligning Indicators to Trends

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

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

5. Adopting a Rigid Trading Approach

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

Varying TA Strategies Helps You Find Your  “Right Mix”

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

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

Looking at Trades From “Borrowed Eyes”

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

Final Thoughts

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

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

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

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


Is Tokenization the Engine of Future Economies?

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

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

But what are tokens? 

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

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

The Chicken-and-Egg Concept

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

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

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

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

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

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

The Incentive in Tokenization

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

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

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

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

Asset Tokenization 

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

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

But what is the tokenization of assets?

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

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

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

The Growth of Tokenization and Its Benefits 

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

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

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

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

Shortcomings of Tokenization

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

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

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

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

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

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

Final Word 

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

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

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

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

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

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


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

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

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

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

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

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

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

Transaction Input and the Essence of ScriptSig

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

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

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

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

Locking Funds for Transaction Output with ScriptPubKey

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

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

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

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

The blockchain then executes the SHA 256 hashing algorithm.

Understanding Bitcoin Script

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

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

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

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

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

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

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

The ScriptSig Blockchain Mechanism

Bitcoin output transactions are coded to be:

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

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

The Benefits of Bitcoins Scripting Sequences

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

Parting Shot

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

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

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



3 Compelling Reasons Why Tether is Just Another Fiat

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

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

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

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

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

What Makes Tether so Attractive?

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

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

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

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

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

Tether is Just Another Fiat- Here’s Why

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

It Works Against Decentralization

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

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

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

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

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

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

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

Tether has Been on a Mad Rush to Increase Supply 

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

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

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

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

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


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

Tether Operates Like a Bank

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

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

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

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

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

Final Thoughts

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

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

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


Value Per User: A New Way of Quantifying Crypto Potential

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

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

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

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

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

What is Value Per User?

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

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

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

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

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

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

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

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


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

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

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

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


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

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

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


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

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

SocialGood (S.G.)

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


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

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

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

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

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

What Does it All Mean?

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

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

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

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

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


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

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

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


Crypto Market Trends for 2021 that You Should Exploit

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

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

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

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

De-Fi Market Growth Will Continue

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

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

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

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

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

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

Increased Understanding and Integration of Blockchain Technology

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

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

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

  • Tokenization.
  • Smart Contracts.
  • Decentralized Consensus.

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

Digital Transformation Will Become a Corporate Necessity

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

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

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

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

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

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

China Will Lead in Cryptocurrency Adoption

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

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

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

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

Central Banks Will Get in on the Action

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

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

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

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

Tightened Fintech Regulation

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

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

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

Final Word

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

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

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


Understanding the Economics of Cryptocurrencies

When it comes to the economics of cryptocurrencies, many issues have raised controversy. On a high level, crypto evangelists argue that cryptos are actually beneficial to the economy. On the other hand, central banks, environmentalists, and other critics claim that cryptos adversely affect the economy. Obviously, it is hard to settle this debate. Nonetheless, we will look at the top contentious issues with a view of understanding the arguments for each side.

Indicators of value

How do we know that Bitcoin is valuable? And how do we know that Ethereum is more valuable than Ripple? Well, there are several economic indicators that investors use to estimate the value of financial assets, such as cryptocurrencies.

#1: Price

When you are deciding which crypto to go for, the price of the coin is what will most likely strike you first. You may hear arguments such as “Bitcoin is expensive; buy Ether instead.” But really, the price of a coin does not tell much about its value because prices are relative. Take this example: if you have $100 and spend it all on buying Bitcoin, you will get roughly the same amount when you sell the Bitcoins. This is exactly what would happen if you used your $100 on Ripple, Binance Coin, Tron, or whatever else. So you see, a coin’s price is just a number. You’d be better off looking at its volatility against its base currency. 

#2: Market capitalization

Market capitalization: Market capitalization is the value of a crypto coin multiplied by the total number of coins in circulation. It is argued that market cap matters more than the price of a coin. This is because a higher market cap means that the total value in that ecosystem is high, and that is typically construed as posing less risk. You could compare this with the Us Dollar versus the Euro – there are more dollars in circulation, although the Euro beats it at price. That’s food for thought.

#3. Trading volume

Trading volume is the number of coins that exchange hands within a 24-hour period on a given exchange. Each transaction involves a seller moving funds from their wallet to the buyer’s wallet. Each successful transaction is recorded and contributes to the total volume on that exchange. Volume is a good indicator of the strength of the underlying market. If you observe high volumes and increasing prices, it might be a good time to buy the coin as the value will likely increase. On the converse, if you observe high volumes and declining prices, people are probably dumping their coins, and in the short run, the currency will lose value.

Where Do Cryptos Get Their Value?

Good question. Understanding how cryptos become valuable is crucial in determining how they can impact the economy and whether such impact would be positive or not. There are several explanations of how cryptocurrencies get their value. The following are some of the most plausible ones.

#1. The larger the community involvement, the more valuable the crypto. Although there are some exceptions, this is largely true. For example, Bitcoin has the largest user community and is the most valuable (in terms of market cap).

#2. The utility theory: This argument says that if you can use a currency to perform any useful function, then the currency is valuable. According to one research, this is debatable because about half of the known cryptos have no meaningful usage. For this reason, crypto critics have argued that cryptocurrencies create value out of thin air.

#3. Perception: The value of a cryptocurrency is closely linked to what people think about it. Perception is also the root of speculation. For instance, Bitcoin’s price surged during the past two halvings because speculators had this general feeling that the currency is becoming more scarce and, thus, more valuable.

Cryptocurrencies have the characteristics of money, including divisibility, scarcity, transferability, interchangeability, and durability. We should have explained where money gets its value first. But that is out of scope for this topic. 

The Phenomenon of Double Spending

Double spending occurs when value is created but spent in the same process. Cryptocurrencies exhibit double-spending primarily in the following ways:

Costly mining: Most cryptos (these are the ones that rely on proof-of-work) are generated through mining. In this process, expensive equipment is used to perform complex calculations to verify transactions. The high rates of power consumption by this equipment have also not gone down so well with environmentalists. The bottom line is that operating cryptocurrencies is itself a costly affair, which begs the question: are cryptos really economical?

Delayed settlement: The majority of cryptocurrencies do not offer an instant settlement. Bitcoin, for instance, takes an average of 10 minutes to reflect on the recipient’s wallet. Well, economics teaches us that time is money. If you follow the capital markets, you must have heard of how costly a momentary stock market shutdown can be. Thus, one would be right in questioning whether the time wasted in delayed settlements is not an economic loss.


Volatility is one of the core characteristics of cryptocurrencies. But this is not exclusive to crypto – traditional capital markets experience the same phenomenon. The root cause of volatility is fear – the fear that an asset may suddenly lose its value. So, let’s look at what causes this fear.

Bad news – Negative news about a cryptocurrency always causes a scare among holders of the currency.

Security breaches – When an exchange is compromised, investors tend to rush to dispose of their coins in fear that they might be stolen. This usually results in a sudden drop in prices since many are selling but few are willing to buy.

Uncertainty about the future of cryptos – Once in a while, crypto investors ask themselves whether cryptocurrencies have any intrinsic value. Upon realizing that the answer is no, fear kicks in. 

Risks from large currency holders – For most cryptos, those who acquired them during the early days hold large amounts of the asset. The fear that these folks may one day flood the market with their coins always lingers. 

Interestingly, there is a tool that investors use to measure fear (read volatility). The Volatility Index (VIX), also known as Fear Gauge or Fear Index, is used to estimate the extent to which an asset is volatile. VIX was invented for the S&P 500 Index but has been adapted for use with cryptocurrencies. 

How Cryptocurrencies Have Helped the World Economy

Despite the hullabaloo on whether cryptos are good or bad for the economy, they have certainly impacted economies positively in the following ways:

Cryptocurrencies have created a whole industry for themselves. Many people have become rich through trading cryptos. Similarly, many people are employed by exchanges, consultancy firms, and so on, all thanks to the existence of crypto.

The underbanked now have better financial opportunities.

The reduction of transaction costs means people can do more with their money.

It has opened more opportunities for entrepreneurs, such as those who were experiencing difficulties trading with global partners.

Final Thoughts

Cryptocurrencies have interesting yet controversial economic principles. Some believe they are economically counterproductive, and then there are those who believe they have created new economic opportunities. Both sides are right to some extent. However, it would be grossly unfair to turn a blind eye to the obvious economic opportunities that can only be attributed to cryptocurrencies.

Crypto Crypto Education Cryptocurrencies

Monero vs. Zcash vs. Beam on Confidentiality and Scalability

When the world was first introduced to cryptocurrencies, one of the features that stood out the most was the privacy these digital coins offered. However, as more people got on board the blockchain train, it became apparent that bitcoin and other pioneer cryptocurrencies weren’t exactly as private as we thought. 

Thus, the need for privacy-oriented cryptocurrencies arose. These cryptocurrencies have several built-in security features that enhance privacy and anonymity. Therefore, it’s no surprise that they are a hot deal among crypto enthusiasts who prefer to keep their affairs to themselves. 

Monero, Zcash, and Beam are three of the most popular privacy-centric cryptocurrencies. Crypto investors who are focused on the privacy features of a digital currency will probably contemplate buying into any or all of these three. So, which one should you go for in terms of scalability and confidentiality?

In this article, we’ll have an in-depth look at how the three altcoins compare. But first, how about a little background on them?  


The cryptocurrency, launched in 2014 under the name BitMonero, relies on a technology called Cryptonote. It is a Proof of Work algorithm different than that of Bitcoin. In order to make the operations on its blockchain anonymous, the method adopted is that of the “Ring Signatures.”

It is a digital signature that can be created by anyone and in which each user has the key. A person can then put the electronic signature anonymously in a message or document on behalf of a “circle” of users. The members of the “circle” are chosen by the author of the signature and are not necessarily informed about the operation.

The strength of Monero (XMR) is therefore based not only on decentralization but also on its secrecy, which allows carrying out transactions that are theoretically untraceable by an external agent. If, for example, bitcoin operations are publicly recorded on the blockchain, in the case of Monero’s ledger, the information is not accessible to everyone


Zcash (ZEC) defines itself as “If Bitcoin is like HTTP for money, Zcash is HTTPS,” underlining its enhanced security and privacy features. Zcash has implemented a cryptographic tool called Zero-Knowledge Proof and grants participants an option to shield transactions. It allows participants to transact without any of them revealing their addresses to the other(s). Zero-Knowledge Proof also obfuscates the transaction amount. Zcash ranks at number 42 in the list of cryptocurrencies with a market cap of $654 million and trading at $60.50 per ZEC as of December 24, 2020.


Beam is a security-focused token with core features that include complete control over your privacy. All transactions are private by default and no addresses or other private information are stored on the blockchain. It claims superior scalability due to its compact blockchain size, opt-in auditability, support for online and offline transactions, atomic swaps, and hardware wallet integration. As of December 24, 2020, Beam tokens were trading at $0.28, with a total market value of $21.9 million, making it the 294th most valuable cryptocurrency.

Confidentiality Comparison


Monero enables confidentiality by using Ring Confidential Transactions (a combination of Confidential Transactions and Ring Signatures) and Stealth Addresses. In addition, Kovri (currently in pre-alpha) is used to obfuscate peer-to-peer communication. Confidential Transactions hide the transferred amounts. With Ring Signatures, at least six “decoy” coins are added to each transaction, each looking equally likely to be the actual one spent in the transaction, thus making the actual source and destination next to impossible to trace. That said, there are certain claims (see this study, for example) stating that there are ways to trace transactions on the Monero network. We do not aim to confirm or contradict those claims.


Zcash uses zk-SNARKs — a novel and very advanced form of zero-knowledge cryptography. Some people call zk-SNARKs “Moon Math” — that’s how arcane and presumably beautiful they are. With zk-SNARKs, all transaction amounts, inputs, and outputs on the blockchain are entirely hidden. However, transactions on Zcash are not private by default. Since zk-SNARKs are computationally heavy to create (it takes 1–3 minutes on a regular PC to create a private transaction on Zcash), most users do not enable them, hurting the overall privacy of the network. At the time of writing, the percentage of fully shielded (i.e., entirely private) transactions on Zcash is below 1% (see here).

The upcoming Sapling network upgrade should make the performance of shielded transactions much more efficient, and hopefully, increase the amount of private transactions on the Zcash network.

In addition, zk-SNARKs require a special secret key to set up the entire system. If this key leaks, the perpetrator can print money and thus destroy the coin. Zcash carries out intricate multi-person ceremonies to create this key, and we have no reason to doubt the integrity of the people involved. However, this is still a valid concern.


BEAM is built on Mimblewimble, a very elegant protocol that allows for both confidentiality and scalability. Transaction amount, sender, and receiver are hidden using Confidential Transactions, and there are no “addresses” in the system — each user just holds private keys to the UTXOs she owns.

Privacy in BEAM is enabled by default. Actually, there are no “open” transactions at all. Reading the blockchain would not yield any information to the observer.

In addition to Mimblewimble’s default privacy, BEAM also implements Dandelion, a networking policy that significantly improves anonymity. Dandelion prevents someone from observing the network traffic to infer any valuable information.

Scalability Comparison


Due to the use of Ring Signatures, additional data is attached to each transaction, significantly increasing the size of the blockchain. At the time of this writing, Monero blockchain size is around 48GB and will continue to grow with wider adoption, hurting usability. We estimate that in Monero, the size of an average transaction is about 14Kb which is almost 25 times greater than in Bitcoin. Simply put, when Monero reaches Bitcoin’s current scale concerning the total number of transactions, its blockchain will be about 5 terabytes — hardly sustainable for a regular PC, let alone on smaller devices. It should be noted that Monero team is currently implementing bulletproofs that should improve scalability by up to 80% (which is still about 5 times more than Bitcoin)


At the time of writing, Zcash blockchain size is around 19GB, while the total number of transactions is approximately 3.5 million, giving an average of 5.3KB per transaction — almost 9 times higher than Bitcoin. While it is better than Monero, it is still much heavier than Bitcoin, which is also not scalable enough in that respect


In BEAM, the Mimblewimble cut-through mechanism is used to keep the blockchain small. The cut-through removes all the intermediate states of UTXOs, essentially leaving only unspent outputs on the blockchain. Thus, the blockchain size does not grow with the number of transactions, but with the number of UTXOs, which is overall much slower.

We estimate that BEAM Blockchain size will be around 30% of Bitcoin’s, so the blockchain size should be below 70GB when BEAM reaches Bitcoin’s scale, making it possible to run a full node on smaller devices. We are actively researching additional improvements to Mimblewimble to make the blockchain even smaller (see Eliminating Transaction Kernels).


Provably Fair Games: Is it The Future Of Online Gaming?

Technological advancements have seen a spurt in the number of online casinos. Hot on their heels is the movement towards betting on crypto rather than fiat currency. 

Currently, industry statistics place the casino industry’s worth at $67 billion. The statistics indicate that these figures will continue to grow. Statista projects that the industry will hit the $92.9 billion mark by 2023. A significant part of this growth will emanate from provably fair games.

So what are provably games? How do they function? What impact will they have on the online gaming industry? This article will answer all that. First off, though, let’s examine the reasons for the growth of online gambling.

Factors Contributing  To The Growth of Online Gambling

Several factors explain the rise in online gambling. The following are just a few of them.

Increased Internet Penetration

First is the proliferation of the internet. The rapid development of internet connectivity allows for uninterrupted play from anywhere across the globe.

Growth of Mobile Applications

Coupled with the increased penetration of the internet is the growth of mobile applications. These apps help bring the gaming sites and platforms to the player’s fingertips.

Acceptance of Virtual Currencies

Additionally, the increased acceptance of virtual currencies has boosted online gaming. 

Enhanced Security

The use of Blockchain technology and cryptos has enhanced the security of gamers. It is incorruptible and secure, limiting the chances of identity theft.

Convenient Transactions

Again, cryptos enable real-time transactions, a feature that many find convenient. Moreover, they allow people from different regions to avoid geo-restrictions that come with fiat currency usage.

Adoption of VR Technology

The adoption of VR technology is fuelling market growth. In contrast to legacy casinos, VR casinos offer their patrons a more immersive and realistic experience. 

Increased Competition

Also, the heightened competition between the service providers has led to innovative products and solutions for gamers. These fuel demand for their offerings.

What is Provably Fair?

Provably fairness is a process that allows gamers to verify the fairness of the online games they’re playing. To achieve this, casinos adopting blockchain technology use a provably fair algorithm. This algorithm generates an encrypted key containing the game’s result. It then sends it to the player alongside a verification key. The latter helps them to ascertain the correctness of the game at its end.

Are Provably Fair Games any Different  From Your Typical  Casino?

There are notable differences between casinos that employ the provably fair process and the regular ones.

Provably Fair Algorithm

For starters, the former uses the provably fair algorithm to stake hands. It keeps the hands in a hash that players can verify. Thanks to the algorithm, gaming sites and casinos needn’t use third-party companies. Again, they don’t require any authority’s acknowledgment as they operate on the blockchain.

Random Number Generators

On their part, regular casinos use random number generators to select the outcomes for the played hands. The players cannot verify the correctness of the hands and their trustworthiness depends on the third-party company behind them. Finally, for legal compliance, they are subject to external authority’s reviews.

How Does the Provably Fair Casino Function?

There are many ways in which you’d implement the provably fair method. In this article, we look at one of the common ones. It involves calculating outcomes using three variables: the server seed, the client seed, and the nonce.

The Server Seed

The server seed is also known as the host seed. It is that variable which the gaming or gambling site provides the player. It comes in twos, the unhashed server seed and hashed server seed. A combination of these two reveals the winning outcome.

Client Seed

On its part, the client seed or public seed is the variable the client(gamer) provides. They do so through their browsers’ downloadable client. 

The Nonce

Finally, the nonce is a random number that increases every time you play a new bet. It starts from zero and automatically increases by one with every turn played.

Tied Hands

Before you begin playing, you will get an encrypted hash of the server seed. The same goes for every other player. This hash holds the details of the game you’re about to play. As such, the casino cannot change it even if it wanted to. You also cannot manipulate the results of your hand.

You See Some and Miss Some

Although you and every other player receive the hashed server seed, you don’t have access to its unhashed version until the game’s end. If you did, you’d know the outcomes of the game before playing. You can only reveal the details at the game’s end through its decryption

It’s Your Take

Soon after your browser will help you generate a random client seed. You may customize it to suit your preferences by adding numeric values to the main seed. Alternatively, you may use it as provided. As you can customize it, it gives you a say in the game’s outcome even though it’s hidden from you. 

The Big Reveal

Once everyone plays their turn, the client seed communicates with the server seed, indicating the session’s end. Then sets in the process of decrypting the server seed. The decryption of this seed reveals all the hands within it. You may then verify the results provided using online software.

No Pulling Fast Ones

You can take comfort in the transparency of the process as all actions occur on an immutable blockchain. The public nature of the transactions means that there are many eyes on the process. Verifiers can check the integrity of the results. Further, they could look into the game’s total percentage payout since inception. This way, they dissuade a casino from cheating.

How Do You Verify Results?

As stated early on you don’t get access to the unhashed server seed. If you did you and any other player for that matter, would be privy to all the information on the winning hands. It’d then make nonsense of the whole gaming process, wouldn’t it now? As such it remains inaccessible until the game’s end. It is, however, essential in authenticating results. How so? At the end of the gaming session, you’ll use your hashed server seed to decrypt the unhashed one. You can then proceed to verify the outcomes.

Here’s how to go about it:

Match the Hashes on the Server Seeds

First, ensure that the hashed server seed the site sent you matches the hash of the unhashed server seed. If they do, then the site gave you the genuine sever seed. You can then proceed to verify the results. 

Authenticate the Server Seed

To authenticate the server seed, you could use an online tool, for example, Xorbin. It helps you generate the SHA 256 hash for the unhashed server seed. After confirming that the two hashes match you can calculate and compare your results with the ones your site publishes.

Generate the Roll-Result

Alternatively, you can manually generate every roll result. After that, you compare them with the results on the gaming site. It is an arduous process, and you would do better using one of the many online provably fair verifiers. It’s best to use a third-party verifier as opposed to the site-provided ones.

How is Provably Fair a Game Changer?

It’s easy to see why provably fair is a game-changer. First, there’s the use of cryptos in place of fiat currencies. In the recent past, there’s been greater acceptance of cryptos as a store of value and medium of exchange.

Currently, all signs point to their increased adoption globally. By adopting them now, gaming sites using the provably fair approach are embracing the future already.

Enhanced Transparency

Secondly, provably fair games enhance the transparency of the gaming process. Through such means as hashing, provable algorithms and public verification of outcomes they help restore the public confidence in games.No longer are outcomes dependent on third-party verifiers. Neither is the outcome suspect because it’s shrouded in mystery.

Challenging The Status Quo

Casinos and gaming sites that embrace provably fair technology have the edge over their traditional counterparts. Through it, they show their fidelity to openness and fairness. The two are keystones of future gaming/gambling. Such platforms challenge the status quo and attract many customers. 

Final Thoughts

Every gaming/ gambling enthusiast’s wish is to have a fair chance at whichever game they’re participating in. In the past, however, casinos and gaming sites have attracted suspicions on how they settle games/bets. 

As such gamers have sought to introduce more transparency and fairness in the settlement of games. In provably fair, they have a solution. The mechanism’s hashing algorithm provides irrefutable evidence that no one interfered with the playthrough.

Crypto Cryptocurrencies

What Makes Litecoin a Promising Investment?

Litecoin has, for a long time, stood out as a good investment, and it’s not just for the competitive prices it has been fetching. The crypto has grown for almost a decade from $4 to over $100. Ranking 5th by market capitalization is fair stability for a crypto that has been around for 9 years. Before 2017, the LTC hardly ever fetched a price above $10. Nonetheless, it soared during the 2017 bull run to fly as high as $321. 

Litecoin was created as an alternative to Bitcoin, with faster transactions so that it could serve as a transactional currency. While facilitating transactions were at the core of its design, crypto users have turned it into an investment asset as they’ve done to all other digital currencies. The past has so far been impressive. But is Litecoin still a good investment? Read on to find out.

What Makes Litecoin Unique?

Litecoin was forked from the Bitcoin Core client, and thus bears a lot of resemblance to its ancestor. Nevertheless, some key changes were made to the code to make the network lighter. This involved changing block sizes, adjusting the halving period, increasing total supply, reducing block generation time, and changing the proof-of-work algorithm – all this to improve transaction confirmation time. So, what ultimately makes Litecoin different from Bitcoin is that transactions take a shorter time to complete. 

Historical Performance

Litecoin has had a rather dull timeline. Up until 2017, the crypto’s price barely ever reached $10 and 24-hour trading volumes were consistently below $5 million. For such an old crypto, one would easily deem that performance as dismal. 

But times change, and so do fortunes. Litecoin presented a completely different outlook in 2017, even before the end-year bull run was in sight. Beginning April that year, the crypto attracted $10 at exchanges for the first time in history. And when the December bull run finally arrived, Litecoin soared to its all-time high of $333. Ever since, the cryptocurrency has been recording impressive performance. Although it has never returned to the December 2017 high, it has equally not declined below $10. 24-hour trading volumes have also been responsive to Litecoin’s growth. From a modest $10 million in 2017, exchanges are reporting volumes of up to $10 billion daily today.

Litecoin’s Future

If you’re looking to place your bid on Litecoin for the long term, you’ll probably be more interested in its prospects for the future. We have seen that Litecoin’s performance has been impressive in the past – save for the pre-2017 period. Well, how is the crypto likely to perform in 2021 and beyond? The following insights give a better picture of where crypto is likely to be headed.

  • It has a durable history – For 9 nine years, the crypto has endured both bad and worse times, always clinging on to the top 10 list of best performing cryptocurrencies.
  • Litecoin has had one of the most consistent price patterns. This makes it both suitable for transactions (since its volatility somewhat resembles that of fiat money), and for long-term investment due to its slow but steady growth trend.
  • The crypto has an active user base and the development of new features is ongoing. This implies that the coin will enjoy increased utility as it continually opens up integrations for mainstream adoption.
  • The high trading volumes make it increasingly accessible even on smaller exchanges. Thus, investors are assured of high liquidity since it becomes easier to dispose of the asset. 

How to Invest in Litecoin

Investing in Litecoin is not any stranger if you have invested in another crypto before. However, Litecoin’s unique performance profile may make it suitable for certain investments more than others. But which are these?

Typically, crypto investment involves either:

  1. Buy and hold – Where you purchase the crypto and store it in a secure wallet for a long time, with the hope that its value will multiply over the period. 
  2. Trading – Where you buy and sell, and expect to make some profit from price swings. You can either do spot trading (buying at a low and selling whenever you think the price is high enough), or derivatives trading (buying and asking a broker to sell only when the price hits a certain threshold).

Given  Litecoin’s relatively low volatility, both buying and holding and derivatives trading appear suitable. Spot trading is unlikely to yield much because sudden price movements are hardly expected. 

If you choose to buy and hold, you will need secure storage for your coins, preferably, a hardware wallet. You cannot also hold indefinitely. So, you need to plan ahead on how long you intend to hold.

If you choose to go the derivatives trading way, you will need to get a reputable broker such as FXTM or IC Markets. The best part is, these brokers will allow you to trade with demo accounts so you can get a feel of what is like to invest in Litecoin derivatives. 

Pros of Investing in Litecoin

  • During bull runs, the crypto usually experiences explosive surges.
  • Transactions in Litecoin complete way faster than Bitcoin.
  • It has a good track record on the markets.
  • Network fees for Litecoin are typically lower than for other cryptos.

Cons of Investing in Litecoin

  • Litecoin suffered a reputational injury when its founder Charlie Lee sold off almost all his LTC. Although he claimed the move was aimed at avoiding a potential conflict of interest, the absence of the founder in the project left a shaky reputation.
  • Although LTC is based on Bitcoin, the impact of its halving is insignificant.

Any Foreseeable Risks?

Litecoin has historically presented itself as one of the most stable cryptos but that does not mean it is not a risky asset. By the mere fact that it is a cryptocurrency, it is volatile and its behavior is totally unpredictable. There could be no particular risks in sight. Nevertheless, should you choose to invest in LTC, you might want to follow investment best practices of risk minimization. Do not invest more than you are ready to lose, and try to balance high-risk portfolios with those with lower risk ratings. 

Final Thoughts

Litecoin is one of the oldest cryptocurrencies. It is also arguably among the oldest crypto assets which have been tried and tested by investors. Over the years, the crypto has continued to exhibit stability and consistent price patterns. These characteristics have made LTC a suitable transactional currency. For investors, the lack of volatility has made it difficult to do spot trading. However, long-term investors will see Litecoin as one of the best assets on which to bid their money. Ongoing development plus great community support give a level of assurance that the crypto will continue to rise steadily, albeit slowly, as it has always done. 


Watch Out for These Short-Term Crypto Investments

Different investment styles and the availability of time and money and knowledge may make an investor prefer a short-term crypto investment to one that runs into the years ahead. Also, it is not only long-term investments that are considered sound – if you find a suitable short-term deal, but you can also make good profits from it. But the first step is to identify which ones they are and how you can take advantage of each.

In this article, we will look at some of the best short-term crypto investments, which you can take advantage of and make, well, not exactly quick cash, but profits in the short run.

What Makes a Good Short-Term Investment? 

When you are going for a short term investment, it could be because:

  • You are still learning to invest so you want to be able to pull out at any time
  • You have limited time, or you might be unavailable to engage in the future – investment needs time and patience
  • You want to try a high-risk-high-return investment and you are ready to accept potential losses

Whichever case, these investment needs are best addressed by highly volatile assets. For assets with low volatility, jumping in and out (like day trading) may be of no use since price movements are usually modest and limited. Crypto assets that are growing fast or those with active development also make good candidates for short-term investment as these assets are likely to appreciate in value soon.

With this in mind, let us look at some of the crypto investments you may want to consider for the short term.

Top 5 Short Term Crypto Investments

#1 Counos X (CCXX)

This little-known crypto is one of the fastest rising. It was launched in June 2019 (but appeared in exchanges in 2020) and has already made it to the top 203 cryptocurrencies by market capitalization. If you invested in CCXX in September 2020, your wealth would have grown over 4 times in less than 3 months! Even Bitcoin has never come this close. 24-hour trading volumes still remain low as the crypto is not yet available in any of the major exchanges such as Kraken, Coinbase, and Binance. However, you can get it from ExMarkets, LBank, and WhiteBit (exchanging with USDT or USDC), or SouthXchange (exchanging with BTC). 

CCXX is an excellent short-term investment. Since it appeared on exchanges, it has been on a constant rally against both the USD and BTC. The major challenge with investing in CCXX is the hassle of finding an exchange that lists the token. And when you find one, you need to have USDT or USDC to trade (except when you are buying from SouthXchange which accepts BTC). 

#2 Dash

Much has been said about Dash, especially in 2020. The crypto, which has been hitting due to its uncompromisable privacy and anonymity controls, is fast gaining popularity. Although much of this popularity is being fueled by increased adoption among anonymity-focused businesses, such as dark web markets, there is no denying that the crypto is set to rise. As people become more privacy-centric, the demand for privacy cryptos will rise and merchants and retailers will have to start accepting them. With Dash leading the pack, its growth in the near future is almost guaranteed.

Dash generally performs well on the financials, ranking #28 on and recording 24-hour trading volumes above $800 million. The crypto has also exhibited moderate volatility over the past year with neither extreme surges nor embarrassing crashes. However, with the media attention that it is slowly attracting, we might see a change in the trend. If you are looking for an easy-to-trade crypto with promising potential in the short run, Dash is a good bet.

Investing in Dash should be a pleasant experience – it is listed on most major exchanges including Binance and Citex. It can also be traded against BTC, ETH, USDT, and USD. 

#3 Chainlink (LINK)

Chainlink was built to provide reliability and security to universally connected smart contracts. Its flexibility allows developers to connect to the blockchain’s APIs to power borderless payments. As smart contracts gain increased adoption, Chainlink could become the favorite option for most developers due to its easy-to-plug integration interfaces, security, and network reliability. Widespread adoption may take some time, but the hype and publicity that precedes it could significantly improve prospects for its digital token.

Currently, LINK ranks #10 by market cap. In 2020, it has been one of the best-performing currencies – it opened the year trading at about $2 but has risen to about $10. Also, the crypto has exhibited tremendous volatility. Within the past year, it has recorded price changes nearly 10-fold with a $20 peak in August. The significant price swings can be a good recipe for day trading and other short-term ventures. 

LINK is listed on Kraken, Coinbase, Hydax, CRYPTO, and others. It can also be traded against the USD, EUR, and USDT making it convenient to acquire. 

#4 Litecoin (LTC)

Litecoin is among the oldest and most stable cryptos. However, it only started shining in 2017 and for the first time reached the $10 mark. Despite being similar to Bitcoin, LTC has had significantly more innovations around it. This has promoted its fast adoption among merchants and retailers. Coinbase, one of the world’s largest crypto exchanges, only supports BTC, ETH, and LTC on its wallet, which proves that the coin has been accepted in the major league. 

Litecoin’s similarity to Bitcoin has also been playing to its advantage. It is easily considered an alternative to Bitcoin and so, as the BTC FOMO continues to hit, a large number of buyers keep opting for LTC, which appears cheaper. This can be demonstrated by the consistent increase in 24-hour volumes since October 2020.

LTC is also a good short-term investment due to its availability on major exchanges including Binance, Coinbase, and Kraken, which means it can be easily acquired. 

#5 Cosmos (ATOM)

Cosmos is a crypto built for scalability and interoperability among blockchains. Given that these are two of cryptocurrency’s oldest problems, Cosmos has immense potential for growth. The project is relatively new, having been launched in March 2019 and only appearing in exchanges in early 2020. Despite its recent debut, the crypto has grown to claim position #25 by market capitalization. The rapid rate at which this asset is growing is a good indicator of its suitability for short-term investment. Although it has traded mostly sideways throughout the year, its 24-hour trading volumes have grown impressively to reach $400 million. ATOM is listed on, Xtheta Global, HBTC, Bidesk, Dsdaq, and Mexo Exchange. 

Final Thoughts

Short-term crypto investments offer an alternative to long-term commitments, which some may find unsuitable. When looking for a short-term investment, you are likely to consider assets with high volatility more appealing. However, you should also watch out for projects that are actively being developed because of their strategic growth advantage. Counos X, Dash, Chainlink, Litecoin, and Cosmos have made it to our top 5 today, but who knows about tomorrow?

Crypto Crypto Education Cryptocurrencies

Five Things Standing in the Way of Crypto Asset Institutionalization

Cryptocurrencies are getting adopted worldwide. They are becoming irresistible as world citizens realize the security and transparency of blockchain fintech. And the global markets are warming up to the thought of crypto-asset institutionalization.

Cryptocurrencies were once the subject of institutionalized bullying, with most nations and states outrightly banning financial blockchain technologies. It’s taken a long walk for cryptos to enjoy the financial freedom they do today.

The revolution is still a long way from crystalizing. Nonetheless, crypto-asset institutionalization can consolidate the major blockchain wins. Institutionalization will result in rampant, positive growth in cryptos, giving these assets access to big-time investors.

Most entrepreneurs steer clear of blockchain fintech because of previous regulatory constraints, but institutionalization will reinforce investors’ confidence and eliminate information asymmetries. Ultimately, blockchain fintech will serve widespread applications. Still, cryptos must overcome the following five things that are standing in the way of crypto-asset institutionalization.

Regulatory Squabbles

Twenty-First Century economies are mostly centralized, whether capitalist or socialist. Governments and central banks run all financial book-keeping, which gives them all the power and access to data.

Cryptos are decentralizing central-bank functions to community census, and that’s why governments initially opposed blockchain fintech. These innovations are challenging to new audiences, and ignorance prompts fears among players favoring the status quo. (Source)

This inventive fintech faces regulatory gaps, and innovators are crossing moral lines due to a lack of adequate regulation. Moreover, uncertainty over raising crypto capital is hindering institutionalization as consensus hasn’t been achieved.

Assets must disclose all sorts of details before institutionalization, and blockchain applications peg their success on privacy and security. That explains the raging debate over the disclosures crypto startups should make to investors.

However, blockchain is becoming increasingly familiar to financial executives and prominent politicians as its applications grow beyond underground markets. A global standard for crypto disclosures is taking precise form, and uncertainty is increasingly diminishing.

Start-ups issuing crypto tokens are embracing increased disclosures as investors soften towards cryptocurrencies and other blockchain applications. The standardization of disclosures will open up these assets to a consensus over regulations.

According to the Financial Crimes Enforcement Network, crypto exchanges are subject to money service business regulations under:

  • Customer identification.
  • Transaction monitoring.
  • Money laundering.
  • Financial services requirements.

Regulations determine that crypto transactions should track and identify the counterparties of fraudulent transactions via private keys in the hash encryptions.

It’s A Novel, Noble Idea

Crypto assets are new concepts that are plagued with misconceptions. Markets are always resistant to novel ideas, no matter how noble, and cryptos aren’t familiar applications to regular folks. Moreover, rural folks and majorities in developing countries have limited digital infrastructure, which hinders crypto applicability.

Crypto ideals are based on impeccable security and outstanding transparency, but blockchain technologies are still novel. Transaction speeds are considerably slow, and scale prospects are low. Just like electric cars need massive charging infrastructure to tip the balance of favor, the crypto ecosystem needs revamping to be globally viable for institutionalization. It will take more miners to put in the proof of work, and knowledge dissemination takes time to build up impeccable skills.

Blockchain firms are enjoying increasing access to fundings. It’s all thanks to specialists accumulating the knowledge needed to improve on cryptos and edging closer to the intended ideals of digital currencies.

Security Concerns

Crypto-assets are high-value and entirely digital, and these currencies are widely targeted by online criminals with manipulation and hacking skills. Owners of crypto assets must exercise cybersecurity protocols.

Malware and other data phishing software trip the internet, and cyberattacks expose valuable data owned by financial services. The cryptographic coding of these assets makes them secure, but they are not impenetrable enough for the kind of value they store.

The transparency of crypto assets is its biggest pro, but still an undoing. Blockchain technologies store data in publicly accessible, immutable ledgers, and third-party monitors with top-notch analytical capacities can prey on the wide-scale financial data.

Blockchain fintech firms have to build protocols and capacities within cryptography that allow monitoring and preemptive identification of threats. Institutionalization is elusive until cryptos can protect investors’ assets.

Ignorance and Negative Public Perception

(Source) Unfortunately, the masses are crypto-ignorant, and they think Bitcoin is the name of all cryptocurrencies. Bitcoin came into conception and application under a shroud of mystery and institutionalized bullying. It also came under various, coordinated cyber-attacks, and word about the affronts became a public spectacle.

Therefore, the widespread, public crypto-ignorance perceives all crypto assets as insecure, despite the high-level security offered by cryptography. Moreover, the initial legal resistance to Bitcoin reflected negatively on the image of these assets.

Cryptocurrencies were initially used by criminals and underground businesses interested in its clandestine nature of transactions. The need for decentralization was appreciated more by those who had skeletons in their closets, and it led to the degrading public perception about the morality of cryptos.

The shroud of mystery and ignorance is lifting as the utility of blockchain fintech becomes familiar among local folks. Blogs and academies are demystifying the myths around these technologies, and the decentralized transfer of value is becoming more attractive.

Minimal Financial Services Support

You can easily find brokerages, exchanges, and SaaS fintech when investing in stocks and other options. However, Wall Street still hasn’t dedicated considerable expertise to crypto assets.

Financial products need infrastructure around them for support, and crypto-assets are missing out on analytical services, insurance, and research. Without portfolio management, investors must sort out their crypto assets on their own. Major players are reluctant because of uncertainty about tax laws for blockchain transactions.

Crypto startups need to roll out massive support infrastructure for the ease of use during investment. They need to dedicate technologies and personnel to offer crypto brokerages and exchanges.

Negotiations with tax authorities are resolving the uncertainty around blockchain transactions, which could encourage major financial institutions to roll out dedicated services and products for crypto assets.

Final Word

Blockchain fintech is still novel, and cryptocurrencies require lots of innovation and development. The technology is young, and the revolution is underway. Crypto fintech is maturing faster than the human populations that are supposed to adopt it, and people just need time to embrace the gains of cryptocurrencies.

Mass education in the blockchain niche is paramount for crypto-asset institutionalization. It enables positive user and investor perspectives, helping overcome the above-listed challenges to crypto asset institutionalization.

Crypto Cryptocurrencies

How To Get a Crypto Loan

For some, getting a crypto loan may sound stranger than fiction. But times are changing and fiat money is no longer the king of the financial jungle. Crypto loans are slowly gaining ground. And while the majority of crypto users, let alone the general public, have yet to fully understand what this fuss is all about, there is a small class of users who are already turning around their financial outlook for the better, all thanks to crypto loans. 

Understandably, when it comes to crypto loans, many questions need to be answered – what is a crypto loan? Why would one need it? How does it work? And for the mischievous, can you default and get away with it? These are some of the questions we address in this article. The idea is to get you comfortable with the concept of crypto loans and how you can easily get one. 

What is a Crypto Loan?

Crypto loans are a relatively new concept in finance. As such, the understanding on what exactly constitutes a crypto loan may vary depending on the provider. For the sake of this article, let us use the following definitions:

  1. A loan backed by crypto assets – This is perhaps the most common form of crypto loans. In this form, you borrow money and deposit digital assets as collateral. Crypto loans cannot be easily recovered by repossessing physical assets as is the case with traditional finance. Therefore, the idea of holding your digital assets as collateral comes in handy.
  2. A loan issued in crypto – In this scenario, you apply for and receive cryptocurrency as credit. Of course, you must provide collateral, which is usually in the form of other digital tokens.

Why Take Crypto Loan Anyway?

There are different circumstances under which you may find a crypto loan useful. For instance:

  • You have large Bitcoin deposits and you want to buy a house that is in high demand – it won’t be in the market for long. You also don’t want to lose your crypto, especially after seeing how BTC is booming. Taking a loan with your BTC deposits as collateral will smoothly get you out of this dilemma.
  • You have crypto lying idle in your wallet but no fiat money and you want to go for a vacation. You’re sure to have trouble paying for expenses with your crypto. Instead of exchanging crypto to fiat for this purpose (maybe because the rates are not favorable), you may choose to borrow fiat to cover your expenses.
  • You have a high-cost debt that is threatening to ruin your finances. It could be a huge credit card loan that is accruing interest at a high compounded rate. In such a case, you can take a crypto loan at a lower interest and clear off your credit card loan (which is more expensive). This is called debt refinancing.
  • You have digital assets (say, Dao) which you cannot use for a certain purpose. You may collateralize these assets, and take a loan issued in a suitable format to address your needs at that moment. 

These are just some of the creative ways you can use crypto loans. Expectedly, many more applications will emerge as events in the crypto space continue to evolve. For now, let us look at some of the best platforms where you can get a crypto loan (not arranged in any order).

Best Platforms for Crypto Loans

#1 Nexo

Nexo is perhaps best known for issuing interest for staking crypto assets. The less advertised side of the institution is the crypto credit lines it advances to its customers. Getting a crypto loan on Nexo requires you to set up an account and supply some know-your-customer (KYC) information. This is done only during the first registration. 

Once your account is ready, you can get an instant crypto loan with interests from 5.9% annual percentage rate (APR). When applying for a loan, Nexo’s live calculator shows you how much collateral you will need for that amount of loan. 

One of the features that make Nexo a world leader in crypto loans is the fact that you can stake any of the 18 currently supported digital assets. The idea that loans are disbursed instantly is also quite refreshing. 

#2 BlockFi

BlockFi issues loans in USD in exchange for BTC, ETC, or LTC as collateral. Getting a crypto loan with BlockFi means entrusting them with either of the above digital assets while you spend their dollars. The platform is among the easiest to use. Getting a loan on BlockFi is as easy as signing up for an account, specifying the amount USD you need, and which crypto you will be staking for the loan. 

Like most other reputable digital financial organizations, a few KYC checks will be performed. It takes one business day for your loan application to be processed and receive a loan offer, which will indicate how much of your selected digital asset you will need to send as collateral for the amount of loan you specify. Also in the offer, there will be other information regarding your loan parameters such as interest, APR, and other financials that will help you evaluate the offer. On BlockFi, you can get a loan for as low as 4.5% APR. Overall, the loan experience on BlockFi is pleasant except for a long time it takes for the deal to reach closure. 

#3 CoinLoan

Like Nexo, CoinLoan offers both crypto lending and interest-earning from deposits. The platform promises no paperwork and no credit history check to delay your loan processing. As such, CoinLoan loans are approved as soon as you submit collateral. However, when registering on the platform, KYC is mandatory – these are just the rules of the financial market.

The platform accepts collateral in crypto, stablecoins, or fiat. Interest rates start at 4.5% APR, which are some of the lowest in this market. CoinLoan will allow you to deposit any one of the 17 currently supported cryptocurrencies.

#4 Salt

Salt is one of the friendliest crypto lending platforms. Without moving from the home page, you can instantly see how much collateral you need for your loan, monthly installments, APR, and all. Salt loans are also highly customizable in terms of payback period, loan-to-value ratio, and whether you hold any Salt coins or not. Sadly, you can’t borrow less than $5,000, just in case you wanted to try it out. Interest rates on the platform start at 5.95% and increase depending on your loan parameters.

Final Thoughts

Getting a crypto loan is one of the best ways of using your crypto assets to ease personal financial pressures. These loans allow you to get fiat currency without letting go of your crypto gems. Then, when you are much more financially stable, you can pay back your loan and have your digital assets back. You can also use crypto loans to access services where crypto is not accepted or refinance another loan. Some of the leading crypto lending platforms include Nexo, BlockFi, CoinLoan, and Salt. As to whether you can get a loan and default, the answer is yes, but you will have to forfeit your collateral!


Liquidity Auctions: Are They The Missing Piece to DeFi Liquidity Problems?

Liquidity is a financial concept, and it applies as much in decentralized ecosystems as it does in traditional, centralized finance. It refers to the ease through which investors, companies, or suppliers can seize opportunities by buying or selling assets without triggering drastic price fluctuations.

Liquidity is necessary for any market to achieve stability and mitigate volatility. Investors need to realize returns on their investments, and traders need the capital to clinch fleeting opportunities. Unfortunately, new markets often face illiquidity, and they must fundraise some operating capital.  Therefore, these markets and participating investors need liquidity for operations to run smoothly.  

Previously, crypto projects struggled to raise liquidity capital before Initial Coin Offering smart contracts hit the markets. The ICO movements raised billions of dollars for various start-ups. Sadly, scummy projects ruined the reputation of ICO, and investors lost money. 

Initial Coin Offerings (ICOs) supplied the much-needed liquidity for novel crypto projects, but the blockchain ecosystem got rid of them for propagating widespread scams. Crypto communities couldn’t fundraise anymore, and they turned to DeFi for liquidity.

DeFi propagates permission-less, peer-to-peer buying, selling, lending, and borrowing of crypto assets. Cross-chain interoperability revolutionized DeFi in 2020, and crypto users can make profitable trades across various DEXs on fungible and non-fungible crypto assets.

However, the compossibility of digital tokens did more than just create convenience in trades. It pushed DeFi to another level of liquidity. The crypto ecosystem benefitted as DeFi came up with revolutionary liquidity innovations: liquidity auctions. Surprisingly, 2020 proved DeFi’s potential of providing liquidity; the market grew by 2,000%, reaching a market cap of $14 billion.

DEXs and Slippage 101: Addressing the Liquidity Gap

Through decentralized exchanges, anyone can buy or sell assets, and DeFi empowers anyone to become a lender or borrower. The trading platform helps bring liquidity to asset holders because they can sell investments without intermediation.

Large exchanges set the asset prices in the markets since demand-supply forces power the DEXs. Smaller exchanges often take minutes or hours before harmonizing prices with those of bigger exchanges. Therefore, DEXs expose traders and investors to slippage.

Slippage can be a significant risk for traders, but it also presents lucrative volatility. DeFi addresses slippage concerns through liquidity auctions.

The Power of Liquidity Pools

Liquidity pools are smart contracts that allow multiple investors to lock in funds for reuse. The smart contract holds funds for reuse. The smart contract holds all those funds with itself, providing a massive pool of credit for borrowers to lend.

The size of a liquidity pool depends on how much funds investors are willing to lock in. The aggregate funds locked determine how much credit is available for borrowers. Every loan taken out diminishes the size of the liquidity pool.

Borrowers are often traders who participate in yield farming and other ways of exploiting slippage. They identify profitable slippages and don’t mind paying interest for loans. Therefore, investors are incentivized to supply liquid funds because of guaranteed interest rates.

These liquidity pools function like auctions, and interest rates fluctuate with demand-supply forces. When profitable slippages are rampant on DEXs, borrowers demand loans more and drive interest rates higher.

Slippage occurs due to liquidity problems facing exchanges across different chains. Traders address slippage issues by providing liquidity and profiting in the process. The actual sources of the liquidity, investors in the liquidity pools, ultimately benefit through interest rates.

Therefore, these smart contracts motivate investors to address liquidity issues in DeFi. Rising interest rates attract extra liquidity as investors lock in more funds.

The extra supply of liquidity and quickly-addressed slippages drive the cost of borrowing downwards. Moreover, increased interest rates make borrowing less attractive. Thus, the demand-supply forces stabilize volatile situations.

Liquidity Auctions Across Blockchain Networks

Compossibility took liquidity auctions to another level. Investors enjoy the interoperability of cryptocurrencies and can borrow coins with different crypto assets as collateral. If you think such unlimited options empower investors, you are right.

But start-ups benefit even more because cross-chain liquidity auctions help them fundraise capital. Essentially, the technology is making liquidity agnostic for projects regardless of their blockchain affiliations.

The Tax Benefits of Liquidity Pools

The beauty of interests accrued from liquidity pools such as Uniswap qualifies as capital gains revenue. Traditional loans in centralized finance earn interests that qualify as regular income tax. The rationale is that investors swap their cryptocurrencies, which appreciate in value, and trade those tokens for profit. Capital gains income is tax-deductible in cases of losses, but regular earnings don’t offer the same protections in cases of loss. 

What Happens When Liquidity Pools Shrink beyond Investment Levels

These smart contracts are designed to protect investors, and they allow depositors to withdraw their principles and interests at any time. Most investors in liquidity pools just want the interest charges, and only a minority participate in leveraged trades.

Fortunately, all loans are collateralized, and the smart contracts are also algorithmic to reflect demand and supply. As borrowing increases, access to liquidity diminishes, triggering interest-rate hikes. Borrowers are incentivized to repay, but they may fail to do so, putting the pool at risk of illiquidity.

Depositors face dilemmas at such moments when interest rates are very high, but the risk of failed withdrawals is threatening. A spooked investor with massive stakes in the pool could easily cause a Black Swan event at such moments.

That’s why liquidity auctions often impose liquidation clauses and collateralized borrowing. Defaulting traders run the risk of losing their positions at liquidation auctions. Therefore, they exercise diligent borrowing lest they become opportunities for other shark traders.

Parting Shot

These auctions are becoming popular on platforms like Bounce.Finance, Poolz, and Polkastarter. Bounce.Finance already has over 7,321 liquidity pools, and lending platforms like Compound are the fastest-growing DeFi services.

Liquidity auctions are not going away, and they are great because they swap assets for other assets. They empower arbitrageurs and yield farmers to enjoy liquidity benefits through flash loans and leveraging opportunities.

As DeFi intensifies, liquidity issues in DEXs diminish, catalyzing growth and adoption. The stability ultimately achieved is also attractive for long-term investors seeking extra returns. Liquidity auctions are the missing piece to DeFi liquidity problems, aren’t they? Let’s discuss this in the comments section.

Crypto Cryptocurrencies

5 Things Everyone Gets Wrong About Bitcoin

In the grand sense of things, Bitcoin and cryptocurrencies are still relatively new, they are still in their infancy and so there are still a lot of things that we do not really understand about them. Due to this, there are a lot of people out there that don’t know a whole lot about them. There is also a lot of information out there that is getting things wrong or giving people the wrong idea about what Bitcoin is and how it can be used. Let’s take a look at some of the things that the majority of people are getting wrong about Bitcoin.

It’s for Criminals

One of the major misconceptions that seem to be out there is that Bitcoin was designed to be used for criminals. This is most likely due to the fact that it is advertised as being anonymous and very difficult to track. This idea is most likely cemented into the minds of some because… it is used by criminals. You now see that malware that locks you out of your computer, asking you to end a certain amount of bitcoin somewhere, people see that and instantly link Bitcoin with that sort of activity Yet this is not entirely the case, while some criminals do use it, hey also use normal fiat money, that was not designed for criminals and neither was Bitcoin. The majority of Bitcoins are owned by everyday people, in very small amounts. It was designed to be used as an asset that can be bought, sold, and traded. Shops are taking it up and it is becoming far more mainstream, not just for criminals but for everyone.

It’s a Scam

Due to what we mentioned above, a lot of people also seem to think that things like Bitcoin are a scam. Let’s be honest though, a lot of the times where people call something a scam is simply because they do not understand it, not understanding it is certainly not a reason to call something a scam yet it is what a lot of people do. Unfortunately, there have been a lot of very high profile scams that have involved forex, where people invest their money with promises of returns only for the to less everything and the company in question to quietly (or not so quietly) disappear. We have to remember though that those scams are individual, they are done by the company or person that ran them. It is not the actual Bitcoin ecosystem that is a scam, that was just used by those individuals. Bitcoin is certainly not a scam due to the fact that you can buy, sell and trade it wherever and whenever you want, you are not locked in at all.

It Has No Real Value

Something that you hear thrown about a lot is that Bitcoin doesn’t actually have any value. This is something that you often hear from people that are part of the older generations, similarly to the above, this is often through a lack of knowledge or understanding of what Bitcoin is and what it offers. These same people are also the ones that will call Bitcoin a bubble, they will mark it down as being similar to the dot-com boom that happened in the past. Where there was a lot of hype, prices skyrocketed, and then the bubble burst, the majority of companies and stocks lost the majority of their value, that is what a lot of people think will happen with Bitcoin. The difference though is that Bitcoin actually has a use. It can be used to buy, sell, and trade, many larger businesses from pretty much every industry are starting to take it up, starting to accept it which makes it a very viable currency. The value of Bitcoin is based on supply and demand, the demand is increasing and so are the uses, so while the final price of Bitcoin will certainly be $0, for the time being, it certainly has a lot of value.

It’s Difficult to Obtain

If we look back 5 or 6 years ago, then this statement would be true, it was very difficult and actually quite risky to try and get Bitcoin. There weren’t many places that would allow you to buy them, for the majority of people you had to buy directly from someone else, a random person on the internet that more often than not didn’t even want to give you their name. The good news is that things have changed, as Bitcoin grew in popularity, as did the ways to get access to it. These days pretty much anyone can buy it, you can still buy directly from other people but the majority will now look to things like exchanges or dedicated websites for purchasing. Some of them you can simply sign up, and then buy your Bitcoin with things like credit and debit cards, bank transfers and even PayPal are now offering you the ability to purchase them, it could not be any easier and could not be any quicker, often taking just seconds for your Bitcoin to be available. So yes it certainly used to be hard to get, but now it is as easy as buying anything else on the internet.

It’s Risky

There certainly are a lot of risks involved when holding or trading Bitcoin, but there is when you hold onto any sort of asset or stock, yet it is not putting people off buying stocks and shares. Bitcoin comes with risks simply because it is new, people do not know a lot about it and this can scare people. Yet this is also where the most opportunity comes from, look at its explosive growth over the last few months, that sort of growth can only come from newer assets ( apart from TESLA of course) those growth explosions are from people taking it up or discovering new uses. Of course, there will be a drop from those large jumps, but that is known and that is expected. Bitcoin can be risky if you do not understand it, so that just means that you should learn about it before investing, much like any other asset too.

Those are five of the things that everyone is getting wrong about Bitcoin, as the industry continues to grow and develop we will begin to learn a lot more about it, we will get a lot more comfortable with it and we will, of course, see ups and downs. If you have a misunderstanding of Bitcoin then that is fine, just do a little reading, a little research to find out what it actually is.

Crypto Cryptocurrencies

What Exactly Is a Cryptocurrency? An Explanation for Beginners

Cryptocurrencies have incurred a new type of currency we call digital currency that uses cryptography (advanced mathematics) and advanced computer techniques. All this in order not to depend on central entities that issue and control the money.

A cryptocurrency is a purely digital P2P structure (peer to peer) currency. Being digital, it is possible to send them anywhere in the world in a matter of seconds. And best of all, we can do it without the need for intermediaries like a bank. Also like any other currency, you can exchange them for goods and services. As we do today with traditional currencies such as the Euro or the Dollar.

So if they look so much like the money we know, why have they created them? Well, the short answer is: these digital currencies are definitely a better form of money. In fact, they are the best form of digital money that can exist. The reasons behind this claim are the security, transparency, and privacy that allow us to experience. Features that we can experience thanks to blockchain technology. And a blockchain is nothing more than a database supported by a decentralized network as a whole.

But in addition to this, the blockchain makes use of advanced asymmetric cryptography. That is, it makes use of the well-known public key and private key. All this in order to create a payment system that allows you to send money with a global reach, incense, safe and immutable. This has led to a big boom development of this technology. A situation that we can see reflected in the thousands of sites that now accept them as a form of payment.

We invite you to continue reading this article especially aimed at explaining everything you should know about what cryptocurrency is.

Cryptocurrency Vs FIAT: Which is Better?

As we said at the beginning, cryptocurrencies are a kind of digital currency, and they have some relation to fiat money (traditional currencies). However, cryptocurrency and fiat money have huge differences. Among these differences, we can mention the organization and control of these. In addition to how value is evaluated by users.

In the case of cryptocurrencies, these are not controlled by any government or institution, they are decentralized. In addition, its value depends directly on the trust of users. However, fiat money is completely the opposite. It depends on the banks or the authorized central authority and the governments for its operation. All this centralization allows these actors to manage these currencies at will.

Another main feature of cryptocurrencies is that they are based on cryptography. With this, it is sought that the operations are not easily modifiable. They are also the source of open source projects (auditable for anyone). But most importantly, your ledger (the blockchain or blockchain) is made up of a huge database network. With the collaboration of thousands and thousands of computers around the world and operating in a decentralized and consensual manner.

Another significant advantage is that they are open source, anyone can access the code. With this, you can develop a new cryptocurrency based on an existing one in the market. It also allows us to validate the code or detect different problems and failures. This obviously has a great impact on their safety and also ensures that their development is maintained over time.

A few important points:

  • They are not controlled, nor issued by any institution or government.
  • Its value is proportionally related to the trust of its users.
  • They are based on cryptography.
  • They are open source.
  • Your ledger is made up of a network of computers forming your blockchain.
  • They have high volatility most of them.
  • They allow financial transactions to be carried out in a decentralized manner.

Blockchain: The Heart of Cryptocurrencies

This blockchain is nothing more than a form of record of trades and totals. In it, the account is kept of all the units of a cryptocurrency that are in circulation and all the operations carried out. Each cryptocurrency has its own blockchain, which performs the function of a general ledger or ledger (among other missions). Therefore, each of these currencies has its own register, that is to say, its own book of records of units and transactions.

This blockchain network is distributed, like the P2P networks of BitTorrent files. There is a whole network of interconnected computers throughout the world that validates and stores the information from this network. Thanks to this there are millions of backups syncing at all times to safeguard information instantly. Thus, the information about the creation and distribution of money through transactions is recorded in an immutable way. And by immutableness, it is understood that its manipulation is not possible.

“You’ve been able to buy things with cryptocurrencies for a long time or exchange them for work. The only two characteristics that distinguish them from trust money is their decentralized nature and technology.”

What Makes Them An Unparalleled Invention?

Credit: BlockGeeks

Since the invention of this type of digital money, many specialists have talked about the same and their unique characteristics. One of these specialists is Jan Lansky. Lansky made a work entitled “Possible State Approaches to Cryptocurrencies”, presented in 2018 in which he describes these digital coins as follows:

  1. The system does not need a central authority. Thus, its status is maintained through a distributed consensus.
  2. The system maintains all units and their owner.
  3. The system defines whether new units can be created. In this case, the system should define the circumstances of its origin and how to determine the owner of the new units.
  4. Ownership of a unit can only be secured to a user in a cryptographic manner.
  5. The system allows transactions of units, in which the owner of such units is changed. A transaction can only be made if you can prove the current owner of these units.
  6. If two transactions are made on the same units, only one transaction is executed by the system.

In this series of characteristics, the nature of cryptocurrencies is enclosed and those that make them are what they are. That is, any digital currency system that meets these requirements can be considered a full-fledged cryptocurrency.

The Future of Cryptocurrencies

The future of crypts is magnificent. Since its creation in 2008, they have gone from being a mere curiosity to being a very important global economic force. One driven by creativity and the birth of new projects and technologies thanks to the initial coin offering (ICO). But not only that, they have shown that another form of economic control is possible. One where the economy does not respond to the interests and manipulations of power groups but is completely free and decentralized. A form of economy where scourges like uncontrolled inflation have no place.

But they have also opened the doors to an economy that reaches everyone in the world. You no longer need to have a bank account to send or receive money. A simple cryptocurrency wallet is enough and enough for such a task and to manage any digital assets of this nature. This opens the door to a real global financial revolution, which we are just beginning to witness. Let’s say that in the future you intend to buy a house or a car. It would only be enough for you to access a DAPP, apply for a loan by guaranteeing your currencies, and almost instantly your loan is approved. No paperwork needed, no going to a bank, and huge waiting times. This is just a sample of the immense power of cryptocurrencies, blockchain, and what we can expect in the future.

But the revolution does not stop there, in fact, it is possible to imagine an even more revolutionary world. One where everything connected to the Internet can interact with each other safely. One where no matter what country you live in, you can access products and services anywhere in the world and pay for them without complications. This is the power of cryptocurrencies. A power that tells us that the future of cryptocurrencies is assured and that we are just beginning to build it. Despite this, the world of cryptocurrencies mobilizes millions of dollars daily around the world and continues to strengthen. This situation guides us about the current relevance of the cryptocurrency market.

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This Week’s Top Bitcoin Stories & News

Cryptocurrencies may have crept into our daily life, but sixty-three million blockchain users vouch they are here to stay. In the world of digital money and decentralized peer-to-peer networks, bitcoin is by far the most popular of the bunch. In the past twelve months, it has achieved a colossal rise in price. No wonder all eyes are on it.

Banks Say “Yes” to Bitcoin

Seen as the future of global payments, bitcoin has been attracting the increased interest of institutional investors and financial institutions since the beginning of 2020.  Blockchain infrastructure and all its digital assets are already being identified as something so rooted in the present that will undoubtedly affect our future life in ways we cannot imagine.

Top US bank regulator, the Office of the Controller of the Currency recognized the need to regulate the field of cryptocurrency. An interpretative letter issued in July of 2020 finally allowed banks and federal savings associations to secure their clients’ crypto assets. The first step was adding a virtual vault to the safe deposit box as a means of satisfying their needs for financial services. If tens of millions of Americans possess cryptocurrencies, it was only a logical and long-awaited move.

In a world that moves at a much swifter pace, it is imperative that money does too. The passage of time necessary for transactions to settle via regular banking channels leads to capital being tied up and opportunities being lost or postponed. Unsurprisingly, many companies (especially trading and electronic market firms) adopted stablecoins and cryptocurrency infrastructure and they will require their banks to do the same. As a result, last year saw an eight-fold increase in the supply of stablecoin.

The increasing relevance that cryptocurrencies and stablecoin play in maximizing return on assets are another important aspects when it comes to banks adopting them. Only last month the OCC permitted banks to become nodes on any public blockchain which now enables them a substantially cheaper settlement with higher efficiency. 

Corporate BTC

It was expected to happen at some point, but not this fast. Shortly after financial institutions, corporations began substituting bitcoin for cash. MicroStrategy pioneered in exchanging all of its corporate money of over one billion dollars for bitcoin. Making cryptocurrency their treasury reserve asset is explained by declining returns from cash and other global macroeconomic factors.

Financial services and mobile payment company Square, Inc timidly followed in their footsteps putting 1%  of their assets, $50 million to be specific, into bitcoin.  In the company release, they recognize crypto as the instrument of economic empowerment that provides a better way of participating in a global monetary system.

Cathrine Wood, the founder, and CEO of ARK Investment has recently pointed out that if companies in S&P 500 were to put just a percentage of their cash into bitcoin, its price would rise by $40,000. In the case of 10% of cash, it would be $400,000. Looking back at MicroStrategy’s activity, her statements simply draw attention to the way big corporations contribute to bitcoin’s new price value. The more corporate cash turns into bitcoin the greater the possibility for it to skyrocket by the end of 2021. 

Other analysts and experts are more moderate in their predictions. They estimate that bitcoin will not fall below $30,000 and will simultaneously not rise above $50,000. They agree that the market will probably remain bullish. Within the past week, it rose by 2% and is currently worth $34,527.60 thanks to Elon Musk’s tweet about purchasing bitcoin after the GameStop/WalleStreetbets symbolic revolt of the retailers.

More mature companies are enabling the buying, holding, and selling of cryptocurrencies as an extension of their current services. Last year’s key event was when Paypal opened its platform to 346 million active users to trade bitcoinetherlitecoin, and bitcoin cash via their PayPal accounts. Cash App was right behind them allowing deposits and withdrawals of up to $10,000 worth of bitcoin. Such and similar applications make bitcoin easily accessible to ordinary people. More than ever supply is going down and demand is going up and the self-imposed scarcity is driving the price of bitcoin higher. 

All That Glistens Isn’t Gold – Some of It Is Bitcoin 

Bitcoin is infamously volatile, but it is slowly shedding its negative image. The reason for that is its newfound support from Wall Street legends that is mitigating its dangerous side and its reputation risk. Prominent Wall Street investors like Bill Miller are changing the way we think about it, by endorsing it despite its instability. Not only does he recognize bitcoin’s outstanding potential, but he also goes as far as to say that it is the single best performing asset class and that every major financial institution will sooner or later be exposed to it in some shape or form. 

Further Wall Street’s acceptance can be observed in BlackRock’s authorization to two of its funds to invest in bitcoin futures. The filings to the SEC represent this corporation’s doorway into the world of cryptocurrency. Additionally, that means that bitcoin is gaining respect.

Wall Street’s embrace of bitcoin is extremely important partly because its interest in the matter will probably make bitcoin’s volatility and valuation risks decline a little bit. Futures will also lessen in volatility. In addition to Wall Street, bitcoin is increasingly getting adopted by various insurance companies, pension funds, endowments, potentially even central banks. They are all coming on board that this is a digitalized form of gold, a hallmark of the world gone digital.

Gold has always been considered a safe haven of assets. It is an infallible indicator of the state of the global economy and the preferred asset of the monetary system in times of crisis. The growth of global debt, decrease in GDP levels and quantitive easing in a pandemic-stricken world have been keeping the price of gold on an upward trajectory for some time. Those trends are more likely to accelerate causing gold to consolidate the bull market.

If the price of gold has been ascending, the price of bitcoin has been spiraling. Although gold is a proven and more stable store of wealth and value long term, bitcoin will continue to outperform it. If you find yourself drawn to gold on account of its stability, diversify and add some bitcoin to your investment portfolio as well. In the words of Bloomberg Intelligence Senior Analyst Mike McGlone: “I see gold positions somewhat naked if they’re not paired with some bitcoin because bitcoin is the new version of gold.”

In terms of wealth preservation gold has traditionally been a way to sustain wealth. It has remained a symbol of prosperity throughout the history of civilization. Gold is a rare resource, difficult to mine and extract. This adds to its value and makes it a prudent and reliable choice to store wealth. 

Bitcoin also has to be mined, but it requires far less manpower. If we speak of scarcity, it is even rarer than gold with its limited supply of 21 million Bitcoin. If we look at its ability to preserve wealth, two main features stand out: its ability to protect our wealth from governmental intervention and its capacity to preserve it in the event of fiat-currency monetary system breakdown.

Bitcoin enthusiasts are making the case that bitcoin is a better bet than gold for long-term wealth preservation, but it is terrifying for many investors to put a million dollars in bitcoin as we have no way of knowing where it is going to be ten or twenty years from now. Perhaps we should start with 1% of our investable assets, but as the world is going digital bitcoin may yet come into the mainstream. 

Gold has proven itself in the course of history, but it remains to be seen whether Bitcoin will outshine it.

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Top 20 Fun & Interesting Facts About Bitcoin: Part 4

Last time, we got really deep with the transformative power Bitcoin has and what it realistically takes for everyone to live in a better world. Today, we keep on going, heading steadily towards our 20th fact.

Still, if you want to know why Bitcoin is the most credible and trustworthy currency in the world and where this transparency stems from, we advise you to go back and read the previous parts of this series. Now, let’s see why….

16: How Bitcoin is inherently different from central banks

While we did talk about different terms Ray Dalio used to describe free markets in the previous articles, now is the time to bring them all together and see how they can help us contrast Bitcoin and the central banks.

So, last time we introduced the idea of meritocracy, which Dalio defines as a combination of radical truth, radical transparency, and believability-weighted decision-making that essentially comprise free markets. What this entails is truthful price signals, a transparent and reliable rule of law, private property rights, and hard money, which we all defined in detail in previous parts of this series.

Now, how do these terms stand in comparison to central banking? 

First of all, central banks broke many of the principles that define free markets because central planning goes against free-market dynamics. Untruthful price signals, obscurity, lack of consensus and unreliability in terms of rules and related criteria, marginalized private property rights, confiscation of people’s wealth through inflation, poor decision-making and massive society structural issues are main descriptors and issues pertaining to central banks. 

Bitcoin, on the other hand, is reflected through absolutely truthful price signals. Moreover, Bitcoin is even more scarce than gold and we’ve learned before that scarcity is a crucial factor for any medium to move price signals. Bitcoin is also defined by transparency and reliability in terms of rule of law. Private property rights are equally honored in the case of each Bitcoin market participant. As we discussed before, Bitcoin is unlimited, meaning that wealth can’t be violently taken away from anyone. What is more, Bitcoin is absolutely hard money as well as incentives to keep each participant as invested as ever in maintaining the system functioning properly. 

17: Bitcoin cannot be affected by central planning

Unlike the macro system that governs fiat currencies, Bitcoin is unencumbered by central planning and thus central banks have no power over Bitcoin. It is a free market that is, hence, impervious to the inconsistencies inherent in central banks, predictions, and monetary policies.

Even when digital currencies are launched in all parts of the world, Bitcoin will remain the one true vehicle through which people across the globe will be able to carry out free trade without the scrutiny of political agendas and manipulation.

18: Bitcoin should be a long-term plan

Central banks are heavily buying gold, creating a hedge against other currencies. Last time we described how this works in detail, but today we want to stress the fact that you should really be following what the big banks are doing. 


— because if central banks are unaffected by their own bad decision-making and are drowning the people deeper and deeper into unemployment, homelessness, and poor living conditions, Bitcoin should serve as a means to escape the future of all those people whose entire wealth is their monthly paycheck. 

Bitcoin is still not widely penetrated and you could too hold one of the most valuable assets that can provide you with stability and relieve you of volatility.

It is a wise investment for the sake of your own future and the future of anyone you know because it is not just a lucrative investment but also a culture that should be spread globally. 

19: Bitcoin equals healthy culture

Last time when we talked about how Bitcoin participants are all incentivized to keep their game up we wanted to give you room to think about this principle.

Interestingly enough, ancient Roman architects had to abide by the law when providing their services. They were required to be joined by their family members in an act of proving that their work is of good quality by standing under the arches together. 

When we think of a central bank, we can’t think of any incentives or disincentives that would control their work quality. However, when we look at Roman architecture, we can still see intact 2000-year-old arches that stood the test of time.

This is what Bitcoin has to offer as well.

20: Bitcoin‘s track record is pristine

Bitcoin’s performance so far has been nothing but impeccable. For more than 10 years now since its inception, we have tracked over 99.99% uptime. What is more, the Bitcoin system has never been hacked nor endangered, and it now stands as one of the most secure and reliable computing networks in the world. Its market value is soaring and owing to its scarcity, it can do nothing but skyrocket even farther in the future. 

Now, this may be the end of our series on Bitcoin, but this is surely not the end for Bitcoin. We may have shared with you some of the most amazing facts on Bitcoin but the story of Bitcoin will surely generate more stories in the future that will have lasting effects on the world.

The potential of Bitcoin becoming the next global reserve currency is real and we may see Bitcoin one day become a unit of account. Its history has taught us to trust it and its path of creation is so unique that there is currently nothing we can compare it to.

As Victor Hugo said, Nothing is more powerful than an idea whose time has come. Bitcoin’s time has come and the reasons not to join the Bitcoin community is becoming fewer and fewer by the day.

The power of Bitcoin does not lie just in the prospective monetary gains but in what it has to offer to the world in terms of living conditions as well. The economy is not there to hold your hand and help you grow but Bitcoin is and Bitcoin can.

As we’ve shared earlier, it just takes a couple of hundreds of hours to your lasting financial freedom. Start learning about Bitcoin today for a better tomorrow and always consider assets that have similar properties as the ultimate hedge against wealth deterioration.

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Top 20 Fun & Interesting Facts About Bitcoin: Part 3

We are heading confidently to the 20th fun fact on Bitcoin but the facts should not be taken lightly. These factors we’ve discussed in this series of articles impact us all. And, hopefully, they will help you decide for yourself what kind of future you want to be part of.

11. Bitcoin is not flawed

Having examined the nature of fractional reserve and of central banking, and having seen how the questionable blessings of Central Banking were fastened upon America, it is time to see precisely how the Fed, as presently constituted, carries out its systemic inflation and its control of the American monetary system. (Murray Rothbard, American writer, economist, and a major contributor to economics, history, political philosophy, and legal theory)

Last time, we offered a real insight into how results help people make their judgment, which is again an important perspective in understanding the value of Bitcoin. Now, we intend to present you with real numbers that go in favor of opting and keep investing in Bitcoin. 

Did you know that the central banks acquired 668 tons in gold purchases, which has continued to increase over the past few years? 

What do you think where did this demand came from? 

  • the central banks alone.

In fact, the first two quarters of 2019 on their own surpassed the previous year’s 50-year high. So, now, there is more gold than there ever was before in emerging countries’ treasuries. Now, this is a trend many countries, including Russia, China, India have started to follow in the recent past to hedge from the dollar as a reserve currency, but what conclusion does this leave us with?

So, while there has never been more gold, there has also never been more money printing as well. What central banks are doing is hedging on against the other and holding gold is a wise thing to do from their perspective. And, the question of why they need to do all this gets us back to the statement from the previous article – the system is flawed, which is why Bitcoin is a much-needed relief. Gold hoarding is not so evident in the US for now, however, this topic requires a special article.

12. Bitcoin is fair

Bitcoin is an escape from moral hazards that central planning entails. This is practically reflected in inflation because important facts are rarely discussed. Inflation is the cause of wealth inequality that we touched upon in one of the previous articles of this series. 

Wealth inequality occurs as a result of excessive money printing, which further devaluates the currency. Still, approximately 25 to 50% of people at the top don’t even keep their wealth in one currency.

And as these selected few protect themselves with their capital in real assets, they are free from the dangers of their country’s official currency devaluations. How does this happen? Well, when the value of the currency goes down, the price of real assets goes up. So, not only do we have a major disproportion in people in terms of how safe they are in the face of inflation but also in terms of wealth they possess.

A minimum of 50% of US citizens can’t afford a several-hundred-dollar-worth emergency payment, which further means that their paycheck is the only wealth in cash they possess. 

So, why do the rich get richer as the poor get poorer?

The answer is simple. The lucky ones will invest a portion of their cash in stocks or real estate for example, whereas everyday people will suffer the consequences of bad planning. What is more, the ones in the top tier will enjoy the benefit of not having to go through the same along with being protected from inflation.

What Bitcoin, conversely, offers is a world free of these games and inequalities. As an inflation-proof system, Bitcoin allows for a much fairer and more equal world. 

13: Bitcoin is protection from financial crises

Apart from the issues we described above, we cannot ignore the toll inflation has on the economy. When the financial crisis hit the world in 2008, we know what had preceded it – a beautiful bubble that skyrocketed the number of homeless people. Now that we’ve mentioned numbers… homelessness gradually increased since 2008 along with more money printing the US central bank relied on to fight inflation.

Still, what is even more interesting is that this picture correlates with the S&P 500’s chart. And, this is where we can go back to the transparency and truth Bitcoin entail that you will never find in the system that manages fiat currencies now. 

14: There are reasons why Bitcoin is to stay pure

We can all agree that central banks remain unaffected by their decision-making. However, all market participants also benefit from maintaining things in the Bitcoin world as they are. Node operators are incentivized to maintain the rules; miners are incentivized to keep doing their share of work efficiently with regard to Bitcoin ledger; developers invest time in supporting an open-source project; and, Bitcoin holders also expand their resources to acquire more Bitcoin. All participants are equally invested in maintaining Bitcoin at the current level because they are also rewarded and affected by it. 

15: Bitcoin is a meritocracy

Firstly, let us introduce the term meritocracy, which Ray Dalio used to describe a specific culture that he explained in detail in his book Principles. The meritocratic culture is the one where candid reviews of colleagues are welcome and encouraged. For example, at his company, Bridgewater, Dalio supported this idea that everyone can review anyone else, CEO included.

Still, meritocracy does not solely fall down to company culture and promotion of honesty, as the idea is much more complex than that. Dalio managed to present a world that surpasses the traditionalist autocratic or democratic systems because meritocracy is a paradigm that denotes a free market. Thus, the meritocratic world is the one where natural selection takes precedence, which is also true for Bitcoin.  

Unlike central banks, Bitcoin, as we could see from the past few articles, is not centrally controlled. Bitcoin is hence a system that is innately aligned with reason and is impervious to politics. Moreover, Bitcoin is marked by transparency and everything is out there for the world to see. Bitcoin is also ruled by supply and demand, just like gold, which is also a free market to this day. And, for all these reasons and against Ray Dalio’s personal beliefs, Bitcoin is, like many successful companies nowadays, an authentic example of the meritocratic world. 

See you soon in Part 4 to talk about new exciting, nerdy, eye-opening Bitcoin facts.

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Top 20 Fun & Interesting Facts About Bitcoin: Part 2

Last time we learned what makes Bitcoin inherently different from everything you’ve ever seen before and, today, we are starting with the opposite, looking at some prominent similarities.

6. Bitcoin as a free market

We ended Part 2 of the series explaining how money is a vehicle, a tool people use to obtain the things they need most. Thus, as with any other tool, money serves the purpose of saving us time. We will naturally type more words on our computer than we will write words in the same period. 

Money is just a tool that helps us negotiate and execute trades more quickly. Still, the money we know now, the fiat currencies, are essentially created to fit a pyramid structure where top tiers derive value from the lower ones. And, the people at the very bottom are the everyday citizens using a particular fiat currency. That means the system we follow, wherever we are on this planet, is leverage-based. It cannot function without the accumulation of debt.

When governments took over the money market, they created a centrally planned design thus making it unfree. The main difference between the planned and the free market is that the latter is based on natural organizing principles. This further means that, in free markets, people strive to discover better ways of doing things by making bets among themselves. 

All regulations and limitations on free-market dynamics, which essentially entail monopoly, only reduce their efficacy. And, Economics teaches us that any monopoly increases prices decrease innovation, and reduces trade. Free markets, on the contrary, operate to economic benefit through increasing productivity.

If we look at Bitcoin, we see an open environment that is, in its essence, impervious to politics and free from artificial impediments and hierarchy. Technology has helped us take an important step in differentiation between how measurement should be carried out. What is more organic and necessary in this world – payment as per the number of hits an athlete makes in a game or payment based on a politician’s charisma?

Some large companies, such as Facebook, have long adopted this mentality where results come before ego. We do not need to debate things or fight who is right when we can see the results of people’s actions and, therefore, know what is to be done next. 

What we are seeing nowadays is this great divide between those who recognize the call for further embracing what Bitcoin is offering and the ones who are doing everything in their power to protect against the impending changes that are already taking place in the world.

This division essentially entails the rift between dominance and competence. People are no longer looking at who has more horses but who can guide and handle them more virtuously and skillfully. Domination is simply unsustainable, as the dominated will always find a way to get back at their subjugators. On the other hand, competence hierarchies entail ingenuity and innovation that rest on an entirely different idea, which is what Bitcoin exudes as well. 

The top-down approach is a thing of the past in so many ways. As Steve Jobs said, “Do you know how many committees we have at Apple? Zero. We are organized like a startup. We all meet for three hours once a week and we talk about everything we’re doing […] You have to be run by ideas, not by hierarchy.” And, the same applies to larger systems – politics, and money.

When we look at markets, we understand their important role in disseminating knowledge. Still, knowledge has a localized quality to it, meaning that people living in one area would naturally be more informed about economic circumstances specific to their space-time reality. Free markets, however, are exceptionally good at both assimilating and spreading the localized pools of data. As a nexus, free markets merge many minds into one through the mechanism of price.

The omnipotence of digital technology rests in its power to allow fluid exchange that dissolves these dominance hierarchies and rewards competence, which precisely what Bitcoin is about.

7. Bitcoin’s price as the ultimate truth

In the words of Ray Dalio, truth or more precisely an accurate understanding of reality is the essential foundation for any good outcome. This means that we need what he termed radical truth to create a world free of centralized dominance. In other words, free markets equal truthful price signals, which we will further explain down below. 

When we think of markets, we think of the price as truth that connects supply and demand. That way, prices are like data packets that convey information about scarcity and value. Therefore, each decision to buy or sell is based on prevailing prices that affect other market participants and thus continues the market exchange.

The supply and demand comprise the foundation of Bitcoin and the price rests on the juncture between subjectivity and objectivity. For example, we know that 1800 out of the total 21 million coins that will ever be created are being created as you are reading this. However, how many people will actually want the 21 million falls in the field of subjectivity. This is the point between truth and perceived truth.

Large companies accepted Bitcoin as a treasury reserve and the resulting Bitcoin feedback loop essentially proves how scarcity drives the demand for money. Price signals are the basic truth in the marketplace. 

When central banks centralized gold, they broke the truthfulness of money and corrupted the money issuance system. Today, we are witnessing excessive money printing which is slowly turning value into worthlessness. This is an example of a decision that pushed people towards free markets (and hence Bitcoin) and hard money.  

From the perspective of history, every currency ever created failed due to their debasement or devaluing. The very first currency and the more recent ones were wiped off the map due to hyperinflation, which central banks hope to fight against through more printing. Still, every fiat currency losses value with time. Look at the GBP, one of the eight major world currencies, which lost 99% of its original value. 

As Charles Holt Carroll said, Inflation is the surest way to fertilize the rich man’s field with the sweat of the poor man’s brow. Inflation also twists fiat currencies’ price signals, causing entrepreneurs to overborrow, poorly manage their capital, and overleverage.

Inflation corrupts the data packets on value and scarcity that we call price signals. When millions starved to death in Soviet Russia, they were merely casualties of economic decisions and price-fixing. These are the consequences of centrally planned money.

The FED forecasts have been publicly shamed for inaccuracy while we already know how much Bitcoin is produced today and every day forever. When we look at price signals, fiat currencies are vague, as we don’t know if a price is true or affected by inflation. Bitcoin, however, is a pure signal and has zero unexpected inflation forever.

With a fixed supply, Bitcoin will restore the trust in price signals that crucial for capital, risk, and business management across space and time. Like gold was, Bitcoin is free-market money and an uncorrupted, universal system of measurement.

So now, everyone in the lower tiers of the pyramid structure is opening towards really understating how the rich get richer while the poor get poorer. We are finally seeing the light at the end of the tunnel, a way to complete this cycle and finish this rat race once and for all.

Will centralized planning disappear? Probably never entirely. Nonetheless, at least we have the option that we haven’t had in a very long time. The only thing it takes is education, which may last between 1 and 3 hundred hours. No centralized power will ever invest in teaching their subjects about the way out. 

So, it is on you to free yourself from the matrix. The resources are available. 

8. Bitcoin is transparent

During Donald Trump’s presidency, we could see his tweets directed at the Federal Reserve. While nobody wants the president to openly criticize the central bank, this event did reflect even more the divide that exists in the US. The reasons for publicly displaying his thoughts may be diverse, but some things stated in this written exchange are still true.

Who makes decisions regarding money? How many dollars are there in circulation? How many more will be printed in the future? What criteria support these actions? And, who profits from the production of money? Much information is still hidden under the veil.

Last time, we discussed how fiat currencies are vague, but where does this opacity stem from? We know that central banks’ responsibilities include managing economies, and managing money is one side of it, not a sole function per se. Additionally, it seems that everything is politicized nowadays (hence the Twitter correspondence) although even the Federal Reserve, that is central banking in general, isn’t meant to be politically involved.

There is much that is simply out of alignment at the moment and this rift is the wound Bitcoin is designed to heal.

Earlier in this series, we explained why Bitcoin is a free market. We are leveling up now.

Free markets are essentially based on three pillars:

  1. Rule of law
  2. Private property rights
  3. Hard money

The rule of law allows us to resolve disputes in a non-violent manner; private property rights establish clear boundaries between people and assets; and, the last pillar represents free-market money and true price signals.

This three-layered system leaves room for enterers to take part in the market, obtain capital, and invest with their knowledge and experience back into the society through trading. 

When we mentioned central banks’ role above, we intended to highlight the need for giving clear instructions for processes. No sportsperson would keep competing in a game where rules are hidden or constantly changed to the liking of the club board or organizers. 

We are facing similar challenges at present because centrally planned money is safe only on the surface. The problem with today’s currencies, including the world reserve USD, is that the rules governing them are so opaque, which is why the questions we asked earlier remain unanswered. 

While the US movies keep glorifying the American dream, the Americans are still unaware that the USD is just an SQL database kept confidential at the FED without them showing intention to disclose any of the records to audit.

At the same time, more and more market commentators and financial analysts scrutinize central bankers each time a statement is issued, assessing everything from the way they dressed to what they said. The current state of affairs only shows that we are all missing the point. 

Central banks should not be in charge of setting the prices in the first place, just like any semi-governmental institution doesn’t dictate a universal price of cars. The market is the only one that should be entrusted with determining prices. How? Prices are generated at the point where supply and demand meet.

Why has the central bank then assumed this responsibility? Well, in the case of the United States, when the FED sets the prices, it essentially sets the interest rate, and the interest rate is their most lucrative export market.

All this is “naturally” carried out in complete secrecy, behind closed doors and away from the public eye, making it the exact opposite of what free market is. In the previous article of this series, we talked about the consequences of any interference with prices that Soviet Russia already experienced. Whenever central banks play with price-fixing, they meddle with free-market dynamics, thus creating surpluses/shortages and further damaging the economy. 

The only solution for having a healthy, sustainable, and functioning economy is to establish a system in which everyone will be able to see and understand any pertaining criteria and processes. This approach people will trust, which has long been lost in societies across the world. 

So, how is Bitcoin different?

Bitcoin’s algorithm is entirely transparent. While it does set the money supply, people can collectively agree that the system is fair and unbiased.

When Ray Dalio talked about radical transparency as the essence of a healthy free market, he may not have thought about Bitcoin, but this is still one of Bitcoin’s key features.

Not only does Bitcoin exude transparency but it also achieves so perpetually. This is the reason why baking institutions aren’t in favor of Bitcoin.

What Bitcoin manages to do flawlessly is automatize what central banks are supposed to do, such as managing monetary policy for example. Central banks’ primary tasks are to maintain money supply, prevent inflation, and facilitate international value flows. 

This is where Bitcoin outperforms central banks and the reason why it is the means to restore people’s trust, along with property rights and capital. 

We’ve read and heard about inflation so many times that we’ve become accustomed to the word. However, did you know that monetary inflation is a direct violation of property rights? What makes this worse is that it is legally enforced, which takes us to another related topic.

When governments print more money, they are making changes in terms of ownership or who owns what. Money can be used to get anything in the market, which makes this system downright exploitation of property rights.

Now, Bitcoin, on the other hand, is the answer we have all been looking for. Some of us may not still know much about it, but it is the path to freedom from fiat currencies as an uninflated, confiscation-resistant free market-based money.

As a vividly transparent alternative to the current system, Bitcoin is a means to overcome the opacity of central banking and to return the power into the hands of everyday people like you. 

The more people allow themselves to learn about Bitcoin, the more Bitcoin is going to be believable. The reason why this is so is that there is nothing obscure or misguiding about it, but it does require time and effort to be properly understood. 

Last time, we disclosed the average number of hours it takes for a person to learn about Bitcoin, which may be a reason why a percentage of the world population is going to be unwilling to adopt the new system. People generally dislike change because they fear it, but as Bitcoin is an immutable set of rules, it is currently the only true way to escape political agendas and banking institutions’ manipulation.

Bitcoin can endure and fight off the challenges inherent in the current system that dictates how and where things are going to play out. In this sense, Bitcoin is not just a beacon of hope but an effective tool to combat the pressures of the entitled. 

Once you acknowledge how powerful this transparency is and how far it can reach, it cannot be unseen. As Ray Dalio said, having nothing to hide relieves stress and builds trust. And, we think the time for trust is long overdue and that we are all looking forward to a different system.

Luckily, it is no longer some distant future that we need to pray or hope for the children of our children to experience. Transparency and reliability are at the core of Bitcoin. 

The question is…

Are you willing to accept the transformation towards the most credible, trustworthy monetary policy in the entire human existence?

9: Bitcoin is a winning option

In the previous articles, we explained why Bitcoin is never happening again. We showed how its path of creation entirely closed off options for making Bitcoin 2.0 and the possible scenarios that await anyone who ever attempts to do this. Looking at the technological perspective, we know that everything is getting digitized. There are no reinvented wheels here. Digital currencies are slowly, but surely, becoming part of our everyday lives as we are seeing more and more news on this topic.

Still, as people need confirmation or a reason to place their trust in something, especially something new, we need to compare Bitcoin and other currencies, both digital and fiat, without any unnecessary descriptors. For example, before we never minded about the internet and now everything is happening there, in the virtual world. Even if we take a look at fiat currencies, only 6% of the entire USD has been printed on bills. Everything else is digital numbers, such as the money in individual bank accounts. That’s why the word digital should not be used here to weigh things in any currency’s favor. 

The only playfield where any relevant comparison should be made is monetary policy. Bitcoin is undeniably winning in terms of transparency, predictability, and believability as well. From the perspective of history, these three factors have always been important and people will always look for ways to hold on to their capital across time. That is why gold was the number one currency for such a long time. And, now, Bitcoin is taking over the precedence, as it’s gaining an impressive track record over the same dimensions. 

Compared to central banks, Bitcoin’s indisputable reliability, auditability, cost-effectiveness, and predictability, along with its manipulation-proof nature, are helping bring down the wall of censorship and secretiveness created by central bankers. Bitcoin is winning because it is a symbol and harbinger of the new world order we have all been looking for. 

10: Bitcoin is believable

The tarnished image of the banking systems across the world did not start with Bitcoin. With massive printing into worthlessness, we discussed in previous parts of this series and everything we’ve already talked about here is sufficient for anyone to feel frustrated with the status quo. Including financially literate or otherwise less interested in the topic. 

There is no trust any longer – no trust in the system, no trust in the decision-making, and certainly no trust in the future promised by the central banks.

How is Bitcoin then more believable than what we already have?

When we look at fiat currencies, we‘ve already mentioned that the GBP which, in a little over 300 years, lost 99.5% of its value. Gold, however, never depreciated with time in terms of purchasing power. We know what happened the moment the value of currencies got detached from the value of gold.

Fiat currencies are not only challenging to believe because of their depreciating value but also because of everything we’ve already said about central bankers. Even the predictions we follow are a cause of concern with regards to the percentage of what actually happened compared to what had officially been presented as a formal document to the people. In Part 3, we mentioned the FED’s reports which disappointingly carry less than 5% prediction power. And, naturally, this affected the degree to which people are open and capable of carrying forward as they used to before.

Political agendas, secrecy, manipulation, and varying criteria involving price and supply of fiat currencies have done it. When decision-making becomes compromised and humanity is presented with multiple waves of currency devaluation and unemployment, these are expected results. Reputation and trust are earned, and the results go both ways.

What central banks, along with their monetary policies, managed to do is raise more questions regarding deception because they strive so hard to conceal any misdeeds, wrongdoings, and mistakes. In one of the previous articles, we talked about the level of scrutiny people involve when assessing any financial reporting, so when the words mismatch results, the outcome is mistrust. 

What is also interesting is that the world always seeks someone to blame, even if outcomes were predetermined by some other factors they had no control over. Predicting a country’s GDP is not an easy job, especially if we add to that politically determined ends. An even when someone losses their job due to not satisfying people’s criteria, we still “don’t see” the bad guy in the back. We need to acknowledge that it is the system that is faulty, not individual employees working for an organization. 

Where Bitcoin surpasses central banks most prominently is that we have the data on Bitcoin and we can precisely measure how many coins are going to be produced in the time coming. With governmental institutions, no measurement can be done properly because of their impact on free-market dynamics, which we previously talked about in detail. 

Soviet Russia failed because everything was micromanaged, as we mentioned before. A truly free economy cannot be planned like that. We are missing key components that comprise this naturally organized system. Centralized control dilutes facts. With gold, however, there are scientific, physical features (e.g. rarity) that can’t be left out of the picture, and the same is true for Bitcoin. 

Don’t tell me what you think just show me what’s in your portfolio, said Nassim Nicholas Taleb. Results can speak volumes on the gap between the controlled systems the central banks impose and the free market Bitcoin offers. 

It is not central banks that have to live with the consequences of trading but real people trading live every day. Living at the expense of the selected few freely exercising power to their own benefit is not the future anyone would want to succumb himself/herself to. 

We don’t need to watch for people’s words. The pattern will suffice. 

Next time, we are going to talk about some real numbers, some facts that we need to take into consideration when weighing the decision whether or not to invest in Bitcoin. Also, you will learn exactly why Bitcoin is never going to mess things up. Of course, Take all this information and process it in your way but try to stay with the facts. While these facts may look biased towards Bitcoin, as with everything, there are risks to contemplate about. 

New interesting facts await in Part 3.

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Top 20 Fun & Interesting Facts About Bitcoin: Part 1

If you just started learning about Bitcoin or are trying to understand why it is different from everything else, this is the place to be.

1. Bigger Picture of Bitcoin vs. Blockchain 

Satoshi, the Japanese inventor of Bitcoin, is praised for overcoming the massive challenge of moving value online. Bitcoin certainly paved the way for the creation of new coins; but, more importantly, it opened our eyes to the new world of possibilities.

As a breakthrough invention, we can compare it to the first phone or aircraft. Still, as many Bitcoin connoisseurs like to point out, it is of vital importance that we don’t mix up the precursors and their more modern replacements. Who would like to use the brick phone nowadays anyway?

Therefore, when Bitcoin first appeared, it naturally shifted things quite a bit. We were presented with this new technology and decentralized digital currencies, which is one of its greatest benefits to this day. 

What we now know as a decentralized distributed ledger allowed transactions to be made without any intermediary. This meant that banks finally no longer had to give their blessing for things to work, making Blockchain technology as important as the first car. 

Now, the planes we use today differ greatly from the craft first designed by the Wayne brothers. We still appreciate the power of invention, but like with the software industry, we are inclined to use the newer versions which accommodate our current needs. 

Some experts tend to stress these differences because they understand that new inventions may not always work out in the long term in their initial form. Sometimes we need to debug and fix issues before we can be fully satisfied with anything. 

Bitcoin, which is essentially the first technology of its kind, definitely drew the attention of both people and institutions. Nonetheless, certain experts in the field still call for understanding what Blockchain entails and brings to the table in the long term aside from Bitcoin.

Ray Dalio, one of the most successful hedge fund managers in history, stated that he doesn’t really believe in Bitcoin, but he did say that he believes in the technology behind it. Although he received major backlash for his statements on Bitcoin, we cannot but notice similarities between the comments made by different individuals.

As Bitcoin remains the only market-proven use for Blockchain, those in favor of Bitcoin fervently disapprove of any separation between the cryptocurrency and the technology it is backed by. Some even say that favoring one over the other is the same as preferring the internet to HTTP. Still, it is crucial that we differentiate between Bitcoin cryptocurrency and Blockchain technology. 

Blockchain, the first version of a decentralized distributed ledger, is a historically significant invention that introduced unprecedented changes in the world. As a first of its kind, Blockchain is sometimes criticized for the algorithm upon which it is built – proof of work (PoW). Twelve years after its creation, Blockchain’s performance is believed to be a far cry from what we should be having. 

All critics aim to point out a need for a more sophisticated version of a decentralized distributed ledger that compensates for Blockchain’s limitations. While we still need the basic function of Blockchain, we also need much faster and efficient performance, thus calling for a replacement of the current PoW design.

Whereas traders certainly enjoy the option of earning a few extra tokens through staking (i.e. mining), the fact that the system requires this mechanism to function highlights its imperfections. Why do we need this feature in the first place? Why should any system’s security depend on this? 

Luckily, we have seen some successful attempts to break this barrier in the recent past. A new distributed ledger, a permissioned distributed ledger, is able to process 10 times more transactions per second than any blockchain-based cryptocurrency. While Bitcoin still resides on Blockchain, XRP (previously called Ripple) cryptocurrency successfully uses the new system, which makes it surpass the limitations traders faced before.

Some people believe that the only reason we all rely on Blockchain is that no superior replacement has been found. So, are we still looking for a more efficient solution that can satisfy the basic requirements and speed up the process at the same time? Well, different companies have advertised their products in the past few years, claiming to have overcome challenges inherent to Blockchain.

Some financial professionals go as far as to say that this new distributed ledger finally leaves room for engineering scalable digital currency systems with the real potential to become, or even replace, major currencies in the global financial system.  

The Blockchain-based cryptocurrency system may never be apt at achieving this, but we finally have the stage ready for digital currencies to compete with conventional currencies on the global level. Interestingly enough, some like to think that these new possibilities pose a threat to both Bitcoin and Blockchain.

2. New coins to potentially harm Bitcoin

Ray Dalio believes how another cryptocurrency could disrupt Bitcoin, offering the impact iPhone had on Blackberry as an example. While changes are happening in the world of cryptocurrencies, avid Bitcoin enthusiasts believe that this scenario is highly unlikely.

The power of Bitcoin lies in its path dependence. This one-time invention is not just any product we will toss away after it serves its purpose. Now, why is that so?

The invention of Bitcoin was a critical breakthrough that can only happen once in a lifetime. Many argue how it was the way in which events unfolded that rendered Bitcoin the uniqueness it has. 

For example, if this new cryptocurrency was launched today, its chain security would be extremely weak at first, as it would require everything to be done afresh. As everyone is nowadays already familiar with Bitcoin, it is likely that the new cryptocurrency (which we will call Bitcoin 2.0) with weaker chain security would probably have to fight opposition in the form of banks and governments, among others. 

Therefore, Bitcoin’s importance does not only lie in what it brought to humankind but the organic sequence of events that led to its release. The order of events can hardly be replicated, which leaves little room for Bitcoin 2.0 ever being created.

What is more, Bitcoin’s money supply is scarce, which makes people want to hold it. Traders would always go for more liquidity, greater network effects, and stronger chain security, making Bitcoin 2.0 look rather pale in comparison. 

Even if Bitcoin 2.0 was devised in a way to feature negative scarcity (i.e. a deflationary monetary policy), it would be practically impossible to determine its rate, not to mention the mechanism of money supply decay.

Fighting for the best market position, impending and unavoidable chain forks would reduce Bitcoin 2.0’s liquidity and chain security, essentially making traders opt for the original Bitcoin.

3. Bitcoin’s Expiration Date

As we mentioned above, Bitcoin’s money supply is scarce. When Bitcoin was invented, it was issued on a predictable supply curve. We know that after the mid-22nd century, there would be no more Bitcoin made.

We additionally know that there is a point after which you literally can’t split the coin in half anymore and it also goes to zero (i.e. exponential decay that approaches zero). This means that, while in 2020 we had approximately 1800 coins produced per day, the production is going to fall below 1 by 2100. This is one of the things that make Bitcoin exceptionally unique.

4. Bitcoin similar to gold

As the scarcest monetary metal, gold came to dominate the world. Owing to it being the most inflation-resistant, governments across the world built their monetary systems on this metal. Gold has several determining qualities that allowed it to serve as a medium of exchange:

  • durability, allowing it to persist through time without deteriorating
  • visibility, reflected in gold’s changeability and transformative power that makes it more tradable
  • portability, making gold easily moved from one place to another
  • recognizability, making it easy for people to differentiate between gold and anything else
  • scarcity or limited supply creating its value

Gold essentially became money because its supply was both scarce and predictable. People’s efforts to increase the production of gold could barely affect its supply. Because of this, gold turned into a preferred means of pricing and payment. 

Now, how can Bitcoin compare to that?

The absolute scarcity of Bitcoin, which we discussed in Part 1 of this series, makes it the ultimate pricing mechanism. This trait allows people to easily express their needs through trade, safely hold their capital, and compete at scale.

There are two main characteristics of gold that are essentially comparative to Bitcoin:

  1. production difficulty
  2. new supply predictability

History taught us how these played out with gold. However, Bitcoin may be even harder to obtain than this precious metal. Even if everyone focused on the production, we could still hardly generate more Bitcoin.

Bitcoin is based on a mechanism called difficulty adjustment, which makes it increasingly hard to forcefully obtain greater quantities of this cryptocurrency. While we can calculate with mathematical precision how many coins will be issued by the mid-22nd century (see the previous article for more information), it is unlike any asset or commodity we’ve heard of. 

It is important to understand that this mechanism functions in both directions – if more resources are directed at mining, other market participants will face difficulty in getting their share; similarly, if a percentage of production is stopped, others will enjoy easier access.

Scarcity of money affects its utility, which is why a zero growth terminal money supply represents perfect scarcity and makes Bitcoin a perfect monetary technology. We can say that there has only been one analog gold and Bitcoin, due to its uniqueness, is probably going to remain the only digital gold. Similarly, as gold’s value is undeniable, the market recognized Bitcoin’s worth. The more liquidity there is in the market, the more network effects and value it has as well.

It is also interesting to note how Bitcoin followed the same monetization path as gold did. No one used gold at first until they slowly started to recognize its value and importance. People started to barter gold and it slowly turned into an invaluable asset. Because of its stable value, gold penetrated all spheres of life over time, and we are already seeing how cryptocurrencies are taking over the world in a similar fashion. 

When people finally understood what gold was worth, it turned into a currency. Not only did people exchange gold for goods but gold also turned into money. That is how we had the gold standard and gold paper money as well. When people thought they were using banknotes, they were actually trading the value of gold. Now, currencies are no longer pegged to gold but think about Bitcoin here. Bitcoin serves the same purpose today. 

Bitcoin is slowly but surely gaining a track record in reliability, predictability, cost-effectiveness, and manipulation resistance, which puts it in the same position as gold. More and more individuals and public personas predict that Bitcoin will be the next reserve currency, which after this comparison with gold is far from surprising. 

5. Bitcoin supreme to CBDCs

Ray Dalio, who we first mentioned in the first article of this series, saw Bitcoin as inferior to central bank digital currencies (CBDCs) or cryptocurrencies such as Libra (i.e. Diem). Bitcoin is viewed as a less stable and more unpredictable medium of exchange. Naturally, this is a predictable statement because any currency in hands of large corporations such as banking institutions is prone to manipulation and external control. 

Monetary policies serve to enrich those whom these policies favor, and, as Bitcoin opened new doors that were previously unimaginable, we’ve seen more and more announcements on the issuance of new cryptocurrencies lately. There are many terms in which we can define this decision, but certainly, it is a wise move for those who recognized the movement Bitcoin set forth.

Still, as Bitcoin is undeniably a scarce money supply, it can only further appreciate in terms of exchange ratio against fiat currencies. It is a well-known fact that today’s currencies are printed freely, without any real value backing up these decisions. Over time, these activities can cause fiat currencies to become entirely worthless, as many have noticed already. 

Now, comparison with fiat currencies is a standard approach for determining the value of any emerging asset such as Bitcoin is. This price discovery is based on volatility assessment, which we have seen many times before. However, this mechanism in which we assign value may not be as functional as one may think.

In 1999, when Amazon crashed 94% from 85 USD to only 5 USD, no one expected a massive comeback. However, when Amazon started conquering the digital sphere, its value impressively grew by over 33,000%. This is an excellent example of how gaining control over the digital world entails gaining space driven by scarcity. Like with gold, Amazon ascended to market dominance owing to finite distribution channels and winner-take-all dynamics previously seen with gold.

Now, many would say that this is a highly volatile stock and they would be correct. However, volatility goes both ways or, more precisely, its function is two-fold. We need volatility to go both up and down. There can be no superiority in performance without undergoing volatility. And, the same is true for Bitcoin despite it not being a stock. There needs to be some volatility between zero and the top. What we have been seeing in the cryptocurrency market lately is demonstrative of this mechanism. So, we only need to power through. 

Now, contrary to popular belief, money is not a government creation although governments evidently want their piece of cake. Any trading society will require a medium, which money serves since it is simply the most tradable thing. People will always conduct trading to get to the things they need. Before they exchanged goods and now we exchange other things. So, as this dynamic unfolds, something necessarily becomes more tradable than anything else does. We mentioned at the beginning of this article which traits propelled gold to its globally recognized position, so you can compare for yourself where Bitcoin stands in terms of durability, visibility, portability, recognizability, and most importantly scarcity in comparison to emerging cryptocurrencies. All based on the information we provided in the first and the second article of this series. 

Would you bet on Bitcoin’s superior monetary traits?

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Questions You Might Be Afraid to Ask About Bitcoin

There are a lot of questions you may want to ask about cryptocurrencies and Bitcoin in particular. Interest in the world’s first mainstream cryptocurrency is coming fast and they are relentless now that the price has really started to take off and more and more people are taking notice of it. However, with so many eyes on cryptocurrency, some people may have some pretty basic questions that they feel are a little silly and they simply do not wish to ask them. Yet we are here to tell you that no question is a silly one, we all have different knowledge of Bitcoin and so asking a question is simply our way of gathering more information. So here are some of the questions that you may be afraid to ask about Bitcoin.

Is it a scam?

Let’s get this one out the way right away, the simple answer to this question is no and there are a  few reasons why. Firstly it is a completely independent currency, it is not owned or controlled by a single entity, this means that if someone was to suddenly remove their bitcoin from the markets, or to simply state that the price is much higher or lower, then this would make no difference to the ecosystem. Not a single person can control it and so it cannot be a scam. The second point is that the price is controlled by supply and demand, it is an open market that anyone can trade on, anyone can buy or sell, so you are able to sell your bitcoin at any time, you are not forced to hold and you are not stuck with them, a scam would not allow you to sell at any time in order to get your money back. To put it simply again, Bitcoin is certainly not a scam.

Is it a bubble?

This is a slightly harder question to answer, there is evidence that it may be a bubble, but there is also evidence that it is not, but what you really need to ask yourself is whether or not it is actually a bad thing even if it was a bubble. Of course, if it is not then that is great, the price continues to rise and rise. If however it is a bubble and at some point, it bursts, there is nothing to say that the price won’t recover and then continue to rise afterward. Look at the dot-com bubble, that burst, but now the internet and internet-based businesses are bigger than they ever were within that bubble. Yes, bubbles bursting can be pretty bad short term, but they don’t mean that things won’t be successful in the long run.

What is it?

A lot of people may be hearing about Bitcoin for the first time, so while it may seem silly to not know what it is, many people won’t and so this is not a bad question at all. Bitcoin is a cryptocurrency, this means that it is a currency that exists only on the internet and is based on a form of an algorithm, or a blockchain in this case. Bitcoin can be used as a currency, traded and exchanged for goods or other currencies. The way it works is that each person has a wallet with their coins in, you can then send the information, computer algorithms and processing power is used to confirm each transaction and not one person has any control over the network. All transactions can be seen within the blockchain. There is of course more to it, but we would be here for hours trying to explain everything.

How do I store Bitcoin?

Actually, another good question, when we think about storing our money we think about banks or our wallets, the latter is exactly how we store Bitcoin too, in a wallet, only that it is a digital wallet rather than a physical one. This wallet acts as our safety deposit box for our Bitcoin, any bitcoin that is sent to us will go to that wallet and anything that we wish to send will come out of it. No other person will have access to it apart from you and as long as you keep the credentials, the wallet will be around forever, as it is recoverable on other devices with those credentials.

Can you trade it?

Yes, you certainly can and there are a few different ways that you can do it. You can simply buy or sell it, there are many exchanges that allow you to buy bitcoin with your local currency or to sell it in order to get your currency. You can also trade it like you do in the foreign exchange markets, many brokers that offer Forex services are now enabling you to trade cryptocurrencies like Bitcoin too. This makes it extremely accessible and easy to trade on the global markets, there are even Bitcoin or cryptocurrency-specific brokers popping up that have very good trading conditions available on them.

What can you spend it on?

Pretty much anything. Bitcoin is becoming more and more accepted. In fact, no matter which country you live in, there will be services and shops available for you to spend your Bitcoin on. Even places like PayPal, the world’s most popular payment processor, are now accepting Bitcoin and allowing you to purchase through them and to pay through their portal with Bitcoin. There are a lot of shops that now accept it too, if you are looking for pretty much anything on the internet you should be able to find it available for Bitcoin. So while you might not be able to use it in your local shops, you can online, but there is nothing to say that your local shops won’t start accepting it any day now, more and more companies are each and every day.

Those are some of the questions that you may be afraid to ask, but you should’;t be, we all have different knowledge and different understandings of what Bitcoin is, the whale cryptocurrency world is a brand new one, and not one knows everything about it as it is constantly developing. If you have questions you should ask them, no matter how silly it may seem to you, just ask away, you will gain a lot more knowledge doing that than sitting on your question and never finding out the answers.

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Qualities the Best Bitcoin Traders Tend to Have

From the outside crypto trading looks very similar to forex trading. Technically it is, the same mechanics are used for both, however, the type of people that can trade crypto rather than forex vary quite a bit. There are certain elements to trading crypto that are very different and so require a very different mindset in order to do it successfully. We are going to be looking at some of the qualities that the best crypto and bitcoin traders have and which ones are required if you want to successfully trade bitcoin.

Must Have Patience

When we look at the crypto and bitcoin markets, there can be times here pretty much nothing happens. There have been times where the price of bitcoin has gone months without really moving up and down. Now with bitcoin, you can still make money with a ranging market, scalping little bits here and there, but the real money that makes a bitcoin trader successful aren’t the large moves that it takes both up and down. The problems that these do not come up very often, one or two every year or so. Due to this, a bitcoin trader will need to have a lot of patience, they need to be able to sit back and wait before putting on any trades. In forex it can be painful waiting a week, imagine having to wait for a month or even 6 months before putting on a trade, this is why successful bitcoin traders need to have a lot of patience and self-control.

Have to Always Be Aware

When it comes to bitcoin or any sort of crypto, you need to stay aware when you are trading it or even thinking of taking it. We say this because the news that comes out about it is not as mainstream as it may be for things like the USD or GBP. You need to be aware of what is happening, the latest scandal, the latest news release, and the latest uptake from a major company. Being on top of all of this can help you to choose the right tries to take and to also avoid placing trades at a time where things may potentially go downhill, especially when a scandal or scam comes to light. Be aware, keep on top of the news and be sure that you are always checking rumours before placing trades, as even rumours can affect the bitcoin markets a lot more than they can things in the forex markets.

Need to Always Be Prepared

The markets can shift at any time, this is similar to the forex markets, but you often have a lot more of a warning on the forex markets than you do with the bitcoin markets. Bitcoin can change within minutes of news coming out and due to this, you need to be ready to go as soon as that news comes out in order to help protect your trades or to quickly put a trade on before the new movement has finished. So if you work a full-time job then you can miss a lot of opportunities. Of course, it is best to have a stable job, but the most successful traders often have jobs that allow them to jump on their phone at any time or they simply stay at home, waiting and being ready to make a trade.

Need to Accept Risks

There are a lot of risks when it comes to trading bitcoin, far more than there is with forex, and let’s be honest, there are a lot of risks when trading forex too. The reason why it is considered riskier than normal forex trading is the fact that it has an extreme amount of volatility, the markets can jump up and down thousands in just seconds. If you are not careful, then your account can go from being in profit to blowing in a matter of seconds. A good bitcoin trader will understand this, they will either have the money there and already consider it lost (which is a good rule of thumb anyway) or they have very strict risk management tools in place to protect the account. The risks are there and the risks are far higher than they are with regular forex traders, so if you do not like risk, you most likely won’t like trading bitcoin either.

Ability to Withstand Drops

Bitcoin can be an emotional rollercoaster, for both those trading and those holding onto it, it can have incredible rises, but on the other side of the coin are the incredible drops that it can also have. For many, seeing the value of bitcoin plummet while trading or holding can cause real emotional strain and can cause a lot of stress for the holder or trader. If You are planning on trading bitcoin then emotionally, you need to be prepared for these huge drops, you need to be aware that they will happen and you need to be able to withstand it, both financially and emotionally. So if you get stressed by losses or drops, then bitcoin trading may not be the best asset for you to trade.

An Eye for Details

We know that bitcoin has huge movements both up and down, but the markets often go sideways. When the price is going sideways you need to have an eye for details if you wish to be profitable. You need to start scalping the tiny movements up and down, in reality, those tiny movements could be hundreds or even thousands dollars when put into perspective with the overall price and movements. You need to be ready to place trades for these little movements, it can be very risky, as a breakout could happen at any time, but keeping an eye on the details like news, rumours, companies using bitcoin, and so forth will enable you to trade these sideways markets and still profit in the perceived slow times for bitcoin.

You Need Money

You need a lot more money to trade bitcoin than you do forex. This is basically because of the size of the assets that you are trading and the amount of volatility in the markets. So those really successful bitcoin traders will have a healthy account balance to begin with. Yes, you can trade with $100, but that entire balance will be at risk with each trade, not something that would be recommended at all. You Are looking to trade bitcoin successfully then you will most likely need a slightly larger balance than you do with forex.

Those are just some of the traits that successful bitcoin and crypto traders will need, it is a very different thing to trade bitcoin than it is the normal forex markets. The movements are far more volatile, accounts can blow very easily and so it is far more stressful. News events can have instant and huge effects on the market and you certainly need a lot more money to trade it successfully. If you are planning on trading bitcoin then you need to be aware of these things, you need to accept the risks and you need to be ready to trade at pretty much any time.

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The Do’s and Don’ts of Successful Bitcoin Trading

When it comes to crypto trading, especially Bitcoin, there are a  number of things that you should be doing as well as things that you probably know you shouldn’t. We are looking at some of the do’s and the don’ts when it comes to bitcoin trading. Take a look and see how many of them you are doing, if you are doing some of the things you probably shouldn’t, it is not the end of the world, simply use this to help understand what you can do a  little differently to ultimately improve your bitcoin trading.

Do: Trade With A Strategy

It can be tempting to simply follow what other people are doing when it comes to trading bitcoin. There are a lot of people out there making a lot of money of fit, so there is no harm in just following them right? Well no, first they will certainly be trading with a strategy, secondly, you do not know what that strategy is and so blindly following trades is never a good idea in that situation. Also, you will not be getting the trades at the exact same time, so by the time you take the trade the optimum time may have already passed. So this is why you need a strategy, a strategy that outlines what you will be trading, when you will be trading and how you will be protecting your account. You should always trade with one and you should only put on trades that are properly in line with the strategy that you are using.

Don’t: Blindly Follow the Trades of Others

As mentioned above, you should not be blindly following other people’s trades, as tempting as it may seem. You need to remember that they have been doing this a long time, they have a strategy that they are following, they may even have information from sources that you do not know about, so blindly following their trade will basically mean that you are allowing them to trade for you, but with a delay. Even 10 minutes can mean a lot when you are placing a trade that long after they have put out the signal or that you have seen that they have traded. You also may not have the risk management in place that they do in case things go wrong, so their account may be safe from a drop, but yours is not. So only trade trades that you have found, not that you have funded posts somewhere on the internet.

Do: Use Risk Management

Risk Management is key when it comes to any form of trading and it is certainly the case for bitcoin too. You need to use it, things like a proper risk to reward ratio will enable you to remain profitable, things like stop losses need to be used with every single trade, no matter how sure you are that the trade that you are putting on will be successful, you need to use stop losses. They are there to protect your account and to enable you to remain profitable. If you do not use them, then a single trade could cause you to lose your entire account, something that you certainly do not want to do. So use stop losses, with every single trade, every single one of them.

Don’t: Trade Too Much

It can be very tempting to trade more when things are going well, especially when it is bitcoin due to the massive profit potential that it offers, but you need to be wary of this, you do not know what to overtrade. Overtrading is basically when you place more trades than you should. Overtrading can decrease your account’s margin, and when the margin gets too low, it will only take a small movement the wrong way for your account to blow and for your broker to close all of your trades in the negative. Only trade what you need to, do not get greedy, if you are being profitable, accept that, do not try to push too hard for more.

Do: Keep An Eye On the News

When you are trading bitcoin, it is very important that you keep an eye on the news that is going on around you. Bitcoin can be heavily influenced by the news, if a country decides to ban its use it can have a very strong and very quick drop, if a major company decides to start accepting it, it can have a huge spike upwards. You do not want to miss out on the opportunities that the news can present, but maybe more importantly, you do not want to get caught out by a huge drop, which even with stop losses in place, can cause an account to blow if the price jumps passed the stop loss. If you are going to trade bitcoin or any other form of cryptocurrency, then it is very important that you keep an eye on the news and know what is going on in the crypto world.

Don’t: Let Emotions Overtake You

It is very easy to let emotion take over, especially when there is money involved. This is no different for crypto and bitcoin trading. There is a lot of money to be made, the markets can move up and down a lot which can play havoc with your emotions, in fact, it can cause a lot of stress and anxiety. Things like anxiety can make you not want to trade at all, maybe this has come from a loss or consecutive losses. Then there are things like greed and overconfidence, these can make you start to place more trades, or larger trades, each of which will be putting your account under more and more pressure. If you feel that any form of emotion is starting to build up and that it has the potential to affect the trades that you are making, then you need to take a step back. Take a break, go out for a bit, clear your mind and then come back with a fresh view of the markets. Whatever you do, do not place a trade based on an emotion, it won’t end well.,

Those are some of the do’ and don’ts when it comes to bitcoin trading. There are of course many other things that you should or shouldn’t be doing, but we can’t go over all of them. As we mentioned at the start, if you are doing some of the don’ts, do not worry, we have all done some of them at one point in our trading career, simply learn from them and try and turn that don’t into a do.

Crypto Cryptocurrencies

The Best Cryptocurrency Advice You’ll Ever Receive

There is a lot of advice being thrown around about things like Bitcoin and other cryptocurrencies, some of it is fantastic advice, other bits are not quite so good and could potentially put you into trouble. Wherever you go, there will be people giving advice on what you should be doing when it comes to the cryptocurrency world. Today we are going to be looking at some of the best advice that you may hear about cryptocurrencies and what you should do with that advice.

Don’t Buy Just Because the Price Is Low

The cryptocurrency markets are a crazy thing, they have hundreds of ups and hundreds of downs throughout the year. The age-old idea of buying low and selling high is used with pretty much everything in the world when it comes to sales and retail, the exact same applies to cryptocurrencies. You should be buying when the price is low and then selling when the price is high. There are some problems with this, how exactly do you know when the price is at its lowest? The truth is that you cannot and you don’t, you need to guess which is why things can be a little risky, of course, once it has been purchased, holding on until the price comes back up is certainly a good strategy and one that has served people very well in the past.

You Can Trade It Too

A lot of people know things like bitcoin and other cryptocurrencies as something that you purchase and then hold on to, that is a good way to make money and it is what a lot of people are getting very rich doing, however, that works best when you can buy a large amount of it, in the thousands. If you do not have that much then there are other fantastic ways to make money with cryptocurrency, one of those ways is to trade it, much in the same way that we do the forex markets. Many brokers are now offering it and you do not need much, just $10 to get started. You can trade it 24/7 with low spreads and low commissions, allowing even those with fewer funds to trade and earn more bitcoin as they go. Trading is a great opportunity and one that more and more people are starting to take up.

Avoid FOMO

FOMO stands for the Fear Of Missing Out, you suffer from this when you see others doing things that you are not, making you want to do it. This is very prevalent in the cryptocurrency world. When you see someone buying up things like bitcoin, only for the price to rise and they make a lot of money, you of course want to be a part of that and so decide to buy simply because they did, but the problem is that you are buying into something that you do not know about or due to your emotions. The markets may well turn at this point, the other guy will withdraw his funds and you are then stuck with a currency that is losing value, it is under your purchase price so you have no choice but to hold on or to sell at a loss. Do not buy into things just because someone else is doing well and you do not wish to lose out on any possible profits, do your own research and buy what you feel is right.


Good advice for any sort of investment or anything that you are putting your money into is the fact that you should diversify, you should not stick everything in one basket or in this case one cryptocurrency. One thing to bear in mind though is that you also do not want to spread yourself too thin, you will want to get on 5 or 6 coins, not 20 or 30, the more you do the harder it will be to keep track of the coins you have and where all your money is. So ensure that you diversify out of just one coin but not too much.

Avoid Rumors

There are a lot of rumors when it comes to cryptocurrencies and we mean a lot. More than there are with pretty much anything else in the world right now. Some rumors end up being true, but the majority of them are not, the majority of them are made up and come from people’s minds, often what they want to happen with no real evidence behind them. So the last thing that you want to do is to listen to them or even worse to act on them. We have seen a lot of people place trades or buy coins based on rumor, and you can probably guess that the results ended up with a loss. So some of the best advice that you can be given is to simply not follow the rumors and do not buy things based on what a random person on the internet has said.

Only Spend What You Can Afford to Lose

Do not use money that you cannot afford to lose, that is one of the golden rules of anything to do with money, simply do not do it. Before you buy any coins, before you place any trades, think about the money that you are putting in and consider it as a loss as soon as it leaves your bank account. Consider whether you need that money, what would you use it for? If it would be used for food or things like rent then you should not be using it at all, you should only use money that would not negatively affect your life. Whatever you do, do not do what some others do, do not borrow money, do not take a loan to trade with or to buy cryptocurrencies with, this will only lead to you being in debt potentially for many years to come.

Those are some of the things that we consider some of the best advice that you can get about cryptocurrencies. There are of course many other things that could help you out, in fact, you probably have a few tips for others too. Keep your wits about you, but with money, you can afford and do research rather than blindly listening to others. That is the best advice that you can use.


Why We Love Trading Bitcoin (And You Should, Too!)

Bitcoin has been a bit of a revelation, it has grown beyond what many imagined would be possible, it has changed the face of the world in some regards and is still considered and a potential currency of the future, but when it comes to trading it, there are still quite a few people who are skeptical, and that’s fine. We are going to be looking at some of the reasons why we love to trade Bitcoin and the reasons why you probably should too. Of course, it won’t be for everyone, that is fine, we still love it and we know that a lot of you will too.

Amazing Profit Potential

Let’s get this one out the way straight away, there is the potential to make a lot of money. As with any form of trading, one of the motivations for us to do it is the fact that we can make money from it, it will be the same for the majority of traders. When it comes to trading Bitcoin, that potential is huge, as is the overall potential of Bitcoin to be huge. Just look at the recent growths, the coin is now sitting near to $40,000, up from $6,000 less than a year ago, which is over a $30,000 increase in less than a year. If that isn’t profit potential then we do not know what is. That is why we love trading it, the great thing about trading is that unlike holding,m when the price retraces, which it does and always will, you can profit on the drops too, granted that is a little riskier. The profits are there to be had and that is why we love trading bitcoin so much.

It’s Trader Directed

Unlike forex trading, the crypt markets are trader-led, what this means is that the markets will basically move the way that traders want them to move. So if one single very large trader comes in, they have the ability to shift the markets up or down with a single large trade, or when the sentiment is an extreme buy like we have seen recently, more and more little traders are coming in with their buys, this will continuously push the markets up to even higher prices. Of course, the news does have an effect on the markets, when there is good or bad news surrounding bitcoin, the price will often shift up or down, but again, this is solely based on the traders making that decision, hence why more often than not, some bad news or even good news will have pretty much no effect on the markets right away, it may take a few days, weeks or even months for traders to fully understand it and for it to take effect.

It’s Super Exciting!

The Bitcoin markets are exciting, they are a constant battle between the bulls and bears, and even without trading it, simply watching it can be exciting. In fact, we do that quite a lot, just sit by the charts and various other indicators watching things change and watching the battle between the buys and sells. Of course, it is a little more exciting when your money is on the line. Trading often brings adrenaline and it is no different from crypto trading. When our trade is going the right way, it feels fantastic, when it is going the wrong way it is a panic, but both of those emotions bring our adrenaline levels up. There is nothing better than a big trade dropping to near the stop loss only for it to reverse and end up in profit. You do not get that feeling in many other places in life, so that is one of the major reasons that we love to trade it.

It’s Growing Liquidity

The cryptocoryne world is still in its infancy, it is still a baby, sounds crazy to say that but bitcoin has only been around for around 11 years, that is not much at all. When it was first made available to trade, there was not much liquidity at all, you could only place a 0.01 lot, and you were lucky if that matched the price you put in, these days though it is far easier, the liquidity within the markets has been growing rapidly and it is not pretty easy to put on a trade as big as 10 lots. The liquidity will only continue to grow as more and more people start picking up Bitcoin and more people start to trade it. It is growing in popularity which is only good for our trading. Higher liquidity also means that the markets are a little safer, the movements will still be there and they will be just as big, but they may not be quite as sharp, allowing us to implement slightly better risk management, which of course is vital for the survival of our trading accounts.

It’s Widely Accessible

It used to be hard to get into any form of trading, but that is very accessible with the rise of the retail forex brokers, the same thing has happened with Bitcoin trading. Back when the coin first launched you could not trade it on a broker, you could buy it, or you could sell it at very limited places, that was it. Then brokers began to bring it in, but it was very exclusive, only a few brooks had it and those that did, had horrendous spreads, making it not trading at all. Now though, more and more brokers are picking it up, crypto-specific brokers are out there too. These brokers are now offering much better spreads, ones that make it profitable again, and many broilers are now offering leverage on their crypto markets including bitcoin. These developments have made it far easier to get into the world of bitcoin trading, and this added accessibility has helped to improve things like liquidity in the markets. We can only imagine that it will become even more accessible in the future, how we do not know, just that it most likely will.

Those are just some of the reasons that we love trading bitcoin and why you probably should too. There are of course many more reasons, but we would be here all day if we went over all of them. Have you tried trading bitcoin? If you have, you most likely would recognise a number of the things that we put, the markets are always developing and changing, something that is exciting for us and as long as bitcoin and other coins are around, we will pretty much always love to trade them.


Detailed Breakdown of Bitcoin’s Four Year’s Cycles

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

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

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

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

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

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

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

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

Price History of Bitcoin

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

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

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

The Stages 

Stage 1: Exponential Highs

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

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

Stage 2: Correction

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

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

Stage 3: Accumulation and Recovery

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

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

Stage 4: Continuation

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

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

The Effect of Bitcoin Halving 

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

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

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

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

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

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

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

Current Bitcoin Situation and Interpretation

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

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

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

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

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

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

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

Final Word

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

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

Crypto Daily Topic Cryptocurrencies

5 Crypto Trading Strategies To Bank on in 2021

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

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

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

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

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

1. Scalping

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

Types of Crypto Scalping Strategies

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

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

The Pros and Cons of Crypto Scalping

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

Finally, affordable entry positions expand trading opportunities.

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

2. Buy the Dips and Hold

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

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

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

Pros and Cons of Buying the Dips and Holding

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

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

3. Fading Trading

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

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

Pros and Cons Of Fading Trading

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

4. High-frequency Trading 

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

Pros and Cons of High-Frequency Trading

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

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

5. Golden Cross and Death Cross Trading

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

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

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

Pros and Cons of Golden Cross and Death Cross Trading Strategy

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

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

Final Thoughts

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

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

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



25 Terms that Every Cryptocurrency Trader Should Know

Need to brush up on your cryptocurrency terminology? Even if you’re already caught up on regular trading terms, there are still some new concepts you’ll need to understand if you don’t want to get lost while navigating crypto trading, so stay with us to learn all the new terms that you need to know.

  1. Bitcoin – This is the number one contender in the cryptocurrency field. It was created to eliminate the government and central banks from being involved in transactions and was described as a “peer to peer payment system”. Bitcoin has risen and fallen in value since it was first introduced in 2008, but savvy investors should know that the price has risen to all-time highs in just the past few years. 
  2. ICO/ITC – The abbreviation stands for Initial Coin Offering (ICO) or Initial Token Offer (ITO). It refers to the first shares of a new company being listed on the stock exchange, typically before the currency has been fully released. The goal is for a certain amount of the stock to be purchased before release in order to help fund further development efforts. 
  3. Fiat Currencies – A fiat currency is issued by the government and helps banks gain greater control of the economy because they can decide how much to print and release to the public. The US Dollar is an example of a fiat currency. 
  4. Fear, Uncertainty, and Doubt (FUD) – Negative opinions about cryptocurrency contribute to FUD because it can lead investors to fear crashing prices when they read about it online. Typically, these posts are misleading and are sometimes used by competition to sabotage prices. 
  5. Fear of Missing Out (FOMO) – This term refers to fears that make investors think they are missing out on a good opportunity, often causing anxiety and other psychological issues.
  6. Blockchain – The blockchain is the network where cryptocurrency transactions are maintained and linked through a peer to peer system. Each record of a transaction is stored on a block and are then linked together into a list, called a chain, before being confirmed by several computers on the internet.  
  7. Mining – The process of verifying transactions and adding them to the public record on the blockchain. 
  8. Wallet – Following the concept of a traditional wallet, this common term refers to the online digital wallet that holds each user’s cryptocurrency. 
  9. Address – An address is made up of a series of letters and/or numbers and specifies where cryptocurrency is going to be sent. 
  10.  Altcoin – Stands for “alternative coin” and is used to refer to any cryptocurrency that isn’t Bitcoin. (i.e., Litecoin, Ethereum, Ripple, and so on.)
  11.  Exchange – Where people buy, sell, and trade cryptocurrency. Coinbase is an example of an online exchange. 
  12.  Market Capitalization – The complete value of all of all cryptocurrencies, including the overall supply and the supply that has actually been released. 
  13.  Hashing – An algorithm used on the blockchain that must be solved for blockchain transactions. 
  14.  Pump & Dump – Investors or creators of a cryptocurrency set up a time when people should buy and sell their currency in order to pump up the price. Then, the investors usually sell once they are happy with the price, leaving the other investors with a currency that has deflated in value.  
  15.  Whale – A person or institution that owns a large percentage of Bitcoin or another cryptocurrency, enough so that they could attempt to manipulate the currency’s value by selling. 
  16.  ATH – An abbreviation that stands for “all-time highs”. This refers to the maximum value a cryptocurrency has ever reached before. Many cryptocurrencies will exceed their previous ATH multiple times throughout their lifespan.
  17.  Cryptography – Cryptocurrencies rely on this process of encoding and decoding information that helps to keep others from viewing any information about their transactions. 
  18.  Fork – A fork can be soft or hard and involves changes in rules or formality for a specific currency.  In some cases, miners may not agree on which blockchain to use, which can lead to the creation of two versions of the blockchain. 
  19.  HODL – This abbreviation stands for “hold on for dear life” and refers to holding onto cryptocurrency until market volatility passes. The acronym was originally a misspelling of the word hold but became the more common term that refers to holding onto an asset. 
  20.  Moon – A sharp rise in value for a cryptocurrency, also called mooning. 
  21.  Public Key – This refers to the address where a user can receive money and should be shared with others if you need to receive it, unlike the private key, which is only for the individual. 
  22.  Satoshi Nakamoto – The alias used by the creator of Bitcoin. To this day, the true identity of the creator has never been revealed. Several people have claimed to be Satoshi, but it has never been proven. 
  23. Token – One unit of digital currency, for example, one Bitcoin. 
  24.  Private Key – A string of letters and/or numbers that can be used to access one’s digital currency. This is meant to be kept private, as others can steal your currency if it is shared.
  25. Consensus – occurs when the network’s nodes can agree and verify that a transaction has taken place.

The History of Bitcoin

If you’ve never heard of Bitcoin before, you’ve either been living under a rock for the past few years, or you don’t keep up with the news. This cryptocurrency didn’t attract much attention in its early days, but it has become more recognized as a real currency and boasted upon as the price of Bitcoin has reached maximum highs in just the past few months. But what exactly is Bitcoin…and where did it come from? If you’re thinking of investing in this asset, you’ll need to know the history of the up and coming currency that might even become as accepted as the US Dollar someday. 

The Beginning 

Bitcoin was first introduced under the alias Satoshi Nakamoto back in October of 2008 as a “peer-to-peer cash system”. The idea was that Bitcoin would allow users to send and receive money online without dealing with a middleman (i.e., the central banks). This would save investors from paying high banking fees, relying on major payment systems, and trusting banks in general. It was also meant to provide the people with more privacy, as the government would not be able to trace the transactions or to know how much money someone had or withdrew through Bitcoin. 

A console developer named Hal Finley read about this interesting concept for a decentralized currency and offered to mine the first coins as a test. Many people accused Finley of actually being Satoshi Nakamoto, the original developer, but he swore that it was not him up until his death from ALS in 2014. To this day, the true identity of Satoshi remains a mystery. Finley even claimed that he never found out who the original Bitcoin creator was, despite working with him from the early days of Bitcoin’s launch. 

 Although Bitcoin was first mentioned in 2008, the first lines of code weren’t written until the following year. There was also an issue with the currency being worthless in the beginning, as it was literally worth $0. The coin was finally recognized as a form of currency by a small number of online merchants as early as 2010. Surprisingly, pizza was one of the first material assets that were purchased using Bitcoin. Today, the pizza would be worth around $100 million in value! 

Rising Popularity 

Cameron and Tyler Winklevoss purchased $10 million worth of Bitcoin in 2012. Their purchase paid off big time, as their investment’s value more than tripled within one year’s time. In addition to finding these influential investors, Bitcoin also received another big push towards popularity in 2011 once it was introduced as the main form of currency accepted on Silk Road.

For those that don’t know, Silk Road is an online marketplace that allows users to buy and sell illegal items. The list of black market items include drugs, medical supplies, illegal fireworks, stolen goods, and more. Since Bitcoin was traceless and eliminated the government and banks from transactions, it made sense for the site to want to use it in order to keep the identities of their consumers anonymous. 

Things continued to fall into place in 2011 as other cryptocurrencies like Litecoin and Ethereum were created. Even more, attention was drawn to cryptocurrencies and the option to trade them on exchanges was introduced, which made many of the formerly skeptical traders see Bitcoin as a real currency. It became easier to buy and sell Bitcoin and the price grew to be above $1 that year before reaching its first all-time high of $31. Although the price did die back down, this would be the first of many price bubbles that Bitcoin would experience. 

The Following Years

Bitcoin reached even more price peaks a couple of years later, rising from $200 to $1,000+ in 2013. A few years later in 2017, the price continued to rise to $10,000 before reaching a maximum peak of more than $19,000 that same year. Everyone was talking about Bitcoin.

Sadly, Bitcoin’s luck did not continue and prices crashed in 2018. This could be blamed on the fact that many investors still did not trust the currency and saw it as worthless. Some investors simply trusted the central bank more than they trusted the newer currency; others saw Bitcoin as fraudulent because it was being used to make illegal purchases. 

In 2019, prices began to rise and fall once more. The currency reached a $10,000 value by June of that year but fell to $7,000 before the year was over. These highs and lows in value could be considered a normal factor for Bitcoin prices by this point, but investors still saw a lot of investment opportunities.

Then, in 2020, the COVID-19 pandemic helped Bitcoin to reach its highest price peak so far at $24,000 USD. This was due in part to the government’s efforts to reopen the economy and support spending by passing a stimulus aid package that caused inflation with the US dollar. This caused many investors and financial institutions to turn towards Bitcoin. 

Where is Bitcoin Today? 

Today, one Bitcoin is worth exactly $36,853 USD – a far cry from the $0 starting price back in 2009. The outlook for the next decade could go either way. Some investors expect to see a price of more than $500,000 per Bitcoin by the year 2030, while others think the price will crash to less than $1,000. Only time will tell where the true price is going. 

As time goes on, Bitcoin is expected by many to draw in even more investors and to potentially break its all-time high several times over. With so many perks, especially anonymity, Bitcoin will continue to offer something that draws in investors that are looking for privacy. Others will continue to discredit cryptocurrency as a whole and might never be convinced that Bitcoin is more trustworthy than using a traditional bank. Bitcoin’s critics still believe the bleaker predictions that state the value will drop dramatically. In the end, each investor will need to decide for themselves whether they think Bitcoin is the way of the future or just a fad that will be forgotten about over the next few years.


3 Assets that Will Keep Your Investment Inflation Resistant

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

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

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

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

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

How to Safeguard Against Inflation

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

But what should you do as an investor? 

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

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

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

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

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

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

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

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

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

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


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

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

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

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

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


Last year, bitcoin was up by 66%, and the rise continued into the new year to post a high of $40,519.45, an all-time high. With its exceptional value, bitcoin is hedging against inflation and chaos.


The borderless and decentralized cryptocurrency is beyond any government control, and they cannot print more of it like they do with the standard currency. The maximum bitcoin supply is 21 million, which serves to limit the supply and prevent eventual dilution.

Bitcoin supply remains constant, regardless of what the local governments do.

Interestingly, the current government shutdowns are playing in the hands of digital assets such as cryptocurrency, thereby increasing its value as an inflation hedge asset. But how is that so?

Clearly, the current shutdowns have directed the focus to digital currencies. This may be one of the reasons that propelled bitcoin to an all-time high. It is one of the few assets posting excellent results, which is good for crypto investors. 


Thanks to coronavirus, the S&P 500 index surged 55% from the lows observed in March last year despite all the groom. Similar to bitcoin and gold, the lockdowns and the resulting money printing has caused a rally to the stocks. But how can this happen? 

According to economists, the stocks’ value is not appreciating, but rather the dollar is depreciating against the stocks. The surge in equities is a significant indication of diminishing trust in the local currencies, which forces the wise investor to add more stocks to their portfolio to safeguard against losses.

Apparently, investors have lined up to take up stocks at the expense of fiat currencies.

Final Word

Ostensibly, most investors do not give a hoot about inflation and its effect on day-to-day trading and investment. Well, indeed, what you can’t see can’t hurt you, but inflation is the exception. It will hit where it hurts the most; your financial well-being.

The common practice is to hoard local currency in the form of savings to safeguard against tough times. Putting away something for the rainy day is alright, but the strategy has a significant flaw. You lose a bit of the savings to inflation. Saving in a bank is not a viable option, especially when the global central banks do everything to devalue the local currency.

The looming economic crisis, driven by the continued printing of money, calls for wise investment decisions. Ideally, invest in inflation hedge assets such as gold, bitcoin, and stocks to weather the current storm. Don’t be on the losing side by putting so much faith in the dollar and other global currency.


5 Exchanges that Don’t Need KYC Verifications

The KYC (Know Your Customer) regulations are standard with financial institutions around the world. These laws were enacted to prevent money laundering activities in the financial industry, and every one of us has been subject to them, in one way or another. 

The regulations require institutions or platforms to verify individuals’ identities before using their money transmission services, and most recently, virtual currencies. 

Cryptocurrency and blockchain technology is the new kid in the financial block, and already disrupting the market with lower transaction fees, confidentiality of transactions, and improved security against fraud.

Surprisingly, the KYC verifications are gradually creeping to cryptocurrency exchange platforms. This means that getting your money from the cryptocurrency exchange is a bit more complicated than sending money. But you don’t need to use “surveillance exchanges,” as critics call them, to trade.

If you prefer to withhold personal information with your cryptocurrency investment, you can use anonymous cryptocurrency exchanges. We list five of the best exchanges that don’t require KYC verifications.

Are KYC Exchanges Safer than non-KYC Exchanges?

No doubt, the exchanges that mandate KYC verifications may sometimes offer better security. The platforms are fully regulated and may provide better redress in case of a hack or when something goes wrong. 

On the other hand, regulators may not be able to track culprits in a fully anonymous platform. It can also sometimes be difficult to access important information such as inflation rate, currency generation, and other blockchain transactions. Regardless, the benefits of anonymity in cryptocurrency outweigh its downsides. 

BitMEX is a cryptocurrency derivatives exchange that is the latest to join the club of cryptocurrency platforms aligning themselves with the traditional financial institutions’ regulations. Since August 28 of 2020, the exchange has been rolling out KYC. All traders are required to submit photographic ID and other identifying information by February 12, 2021.

But this does not imply non-KYC Exchanges are not safe. In contrast, many cryptocurrency investors prefer non-KYC platforms. This is because they believe KYC is a powerful magnet for hackers, making everyone unsafe. Every time you make a transaction, you give out your crypto address that can be used in blackmail, social engineering, hacking, or by law enforcement.

At the Web3 Summit, Edward Snowden was given a headline spot, and this goes to show that privacy hardliners are not going to relent anytime soon. The action by BitMEX could see migrations to non-KYC exchanges such as ByBit, but still, that is a wait-and-see situation. 

The main goal of high-value crypto traders is to be in cryptocurrency exchanges that blend anonymity and security to a satisfying level. If any one of the two fails, the investors move to better alternatives, and there will always be crypto exchanges such as ByBit ready to receive them with open arms.

As a crypto trader, you can choose to keep your personal information and protect your identity from the reach of criminals by choosing secure, anonymous crypto exchanges.


The Hong Kong-based cryptocurrency exchange is currently the most popular and the world’s largest, with up to 10 million active users, ahead of Bittrex. With Changpeng Zhao as its head, Binance has been one of the most innovative with creating the Binance Coin (BNB) token. Binance supports over 150 cryptocurrencies.

Users can access a 2 BTC worth of cryptocurrency trading limit without KYC verifications, with additional benefits of up to 50% reduction in fees. You do not need verification for spot trading.

However, transactions involving large amounts of BTC will involve completing KYC procedures to use the Binance platform. Binance US, which the US traders must use, requires KYC verification during registration.

You can deposit funds on Binance through credit cards, bank transfers, and crypto deposits. Holders of its native token, BNB, enjoy a discounted rate. The exchange has a referral program for BNB tokens, among other rewards.

There are some signs that Binance could go the way of BitMEX and transition to full KYC sometime in the future. This is mainly because it is compelled to align with numerous jurisdictions’ requirements where the platform operates. They choose to avoid the push and shove involved with the regulators of different countries and regions. 

Block DX

The exchange operates on blockchain interoperability protocol or the Blocknet, allowing communication between private and public blockchains. Blocknet also makes it easier to interact and exchange crypto among the platform users. 

The Blocknet Protocol-powered decentralized exchange allows users to transact without an intermediary. It has no withdrawal and trade limits, thus allowing greater flexibility. The exchange provides trading pair freedom, where all you need is a small amount of its native coin, BLOCK, to take an existing order. You do not need BLOCK tokens to create an order.

According to the non-custodial exchange developers, Block DX does not have any pause button, kill switch or email notifications. There are no interruptions in scheduled or unscheduled maintenance, and it does not have any offshore company. It claims to be the best definition of a decentralized and anonymous cryptocurrency exchange.

What separates Block DX from its other decentralized peers is that it decentralizes all its platform components. You enjoy more flexibility and freedom.


The anonymous cryptocurrency exchange has been around since 2013 and has considerable experience in the crypto space. 

The platform allows instant transfers across various cryptocurrencies to cryptocurrency wallets. The exchange has a reasonable fee of 0.5% and is very committed to protecting your privacy. Changelly only requires an email address.

Changelly is integrated into the Stratis app, and you can conveniently trade the $STRAT tokens right on your mobile device. But still, the exchange supports up to 150 cryptocurrencies. $STRAT is among the leading cryptographic tokens that you can freely trade in open exchanges. 

However, you need supporting cryptos such as dash and Ethereum to exchange for BTC. Changelly is a centralized exchange, but it does not require id verification to access the swapping services. The only instance where KYC verification is necessary is when Changelly detects suspicious activities.

The platform has a vast array of acceptable payment services apart from the crypto deposits. You can deposit through credit card payments, bank transfers, and even ApplePay. Besides, its trading algo is one of the most impressive yet, which scans other platforms to find the best trading prices.


This platform matches the ability to leverage trades by up to 100 times by BitMEX without requests for any personally identifying information. This strategy helped ByBit accrue more than a million users worldwide since its launch in 2018.

ByBit may seem too lax with security for a casual observer, but nothing could be further from the truth. ByBit is only part of a handful of cryptocurrency exchanges that can genuinely be said to have never been breached since its establishment.

ByBit leverages two-factor authentication sign-ins compatible with authenticator apps, SMS, and email. Funds are usually in multi-signature wallets stored in offline cold storage.

The Singaporean crypto exchange has a wide variety of features for margins trading. The perpetual swap product, BTC-USD, is the most popular with ByBit, and you can trade ETH, EOS, and XRP. 

ByBit’s crypto margin trading guides have a wealth of tips and tricks on swapping derivatives. Anyone around the globe can use ByBit without the need for KYC verification. The platform has both Android and iOS compatibility and is available in different languages. 

Unfortunately, ByBit bars users from the US. 


The hybrid cryptocurrency exchange, which has centralized and decentralized features, is a favorite for Ethereum holders. In an operating environment where owners can be liable for illegal activity in their exchanges, IDEX has pursued pragmatic decentralization to influence legal treatment by the regulators.

IDEX is mainly designed for Ethereum and Ethereum-based tokens (ERC-20) trading. 

The platform employs blockchain technology security and privacy to allow anonymous trading by using only the wallet addresses. You only need to deposit tokens to unlock the wallets and start trading. The IDEX native token holders receive a percentage of the transaction fees generated on the platform.

As of August 23, 2020, all users in the IDEX platform require partial verification to trade. You will also need passport scans and selfies for withdrawals of $5,000 or more. US customers are restricted from trading particular assets on the platform.

Final Word

The world of digital currency was propelled by, among other factors, anonymity. The increasing need for KYC verification to improve security also acts as a barrier. In some way, KYC is a potential threat, as well, in case of a data breach on public ledgers. 

Well, bitcoin mixers are an excellent option for anonymity and security. Nonetheless, a well-established crypto exchange platform that doesn’t require KYC verification is usually sufficient in most cases. Do a little digging before signing up for a cryptocurrency exchange. Check its policies, read the reviews, and weigh the quality of its customer support.

The above exchanges are only a few of the well-established and reliable crypto platforms you can start with. There are many others, as well. Happy trading!

Crypto Daily Topic Cryptocurrencies

Impact of DeFi in the Banking Sector

Blockchain is revolutionary fintech, and DeFi applications are taking success in financial services to a whole new level. Over 1.7 billion people remain unbanked, and DeFi is empowering internet users with permissionless financial services that cut out third parties.

Investors locked more than $15 billion within DeFi protocols in 2020. While decentralization has only captured billions, traditional, centralized finance controls the vast trillions of dollars transacting globally. Therefore, more innovations and marketing will suffice for further adoption.

However, with the industry admitting roughly $500 million from investors monthly, the prospects are changing. DeFi offers irresistible convenience and cost-effectiveness. The potential is also vast.

DeFi encompasses digital lending, borrowing, staking for capital gains, and regular income. DeFi services are permissionless, and they execute most transactions through tokenization and smart contracts. Eliminating all the third-parties and profit-seeking intermediaries make DeFi cost-effective.

Laws, rules, and regulations are programmed into blockchain protocols, and DeFi impacts every aspect of traditional financial services via automation. The impact is so great that it could change human interactions on an international scale.

In this article, we are peering into DeFi and its impact on the finance industry. A chronological outlook of blockchain developments suggests a pattern of innovation and adaptability. Understanding this pattern is crucial for your future investment projects.

The Ethereum Blockchain: How Are dApps Taking over the Banking Sector?       

To start with, let’s appreciate that the Ethereum community has revolutionized and accentuated DeFi as no other blockchain has. The ecosystem is advanced enough to evaluate systemic risks, and it reports DeFi Scores for platform security.

The ecosystem supports open-source composability, and the Ethereum blockchain harnesses the collaboration of independent developers worldwide. Borderless, open-source development has encouraged software designers and coding experts to focus on their strengths.

Ethereum’s infrastructure allows users to integrate various DeFi applications covering vast, diverse industries such as gaming, credit, supply-chain management, and capital markets. Laying and building applications on each other creates a vast network effect.

The Ethereum community is significant in DeFi because its network has over 7,083 live, global, main-net nodes, over 88 million unique users, over 42 million smart contracts executed.

You can utilize over 2,773 decentralized applications along with over 23K daily users. DApps are popular and post daily transactions exceeding 78K because of their:

  • Open-source codes.
  • Decentralized consensus and governance.
  • Noncustodial, permissionless services.
  • Tokenization and the use of smart contracts.

The diversity of dApps supports digital currency banking services, alternative services, DEXs, and P2P lending. Users embrace digital transactions because they are fast, secure, borderless, pseudo-anonymous, and irreversible.

Cross-chain interoperability came into DeFi markets in 2020, and you can now lend, borrow, and trade tokens across different blockchain networks.

How DeFi Saved Global Finance from Total Atrophy

When the Coronavirus became a global pandemic, states imposed mandatory lockdowns. Globally, the banking sector came to a standstill, and the international exchange services and other intermediaries such as asset managers, insurers, and bankers.

People were required to stay at home, and only essential services were allowed to proceed. If we didn’t have alternative financial services, most global supply chains would have suffered complete atrophy.

Governments created concerns about the value of money when they printed cash to bail out people and agencies. People and investors got more concerned that they pay taxes, yet governments dilute their savings by printing more money.

The threat to traditional finance was runaway inflation and the concern that credit is limited for those needing it the most. The international investment landscape went through shocks as investors turned to DeFi, seeking to mitigate the effects of a global pandemic.

Fintech Verticals Most Impacted by DeFi

Open Banking and Financial Data

Data is one of the most valuable commodities in the Mega Big Data era. Banking institutions traditionally hoarded all the financial data of users. In the US, financial data is worth over $15 billion. However, bankers won’t let you access it.

DeFi frees up your financial data for your benefit, allowing you to make intuitive, cost-effective investments. DeFi applications and services are providing open-source, immutable, financial market data.

Moreover, pseudo-anonymity and permissionless transactions prevent a handful of corporations from accessing your private transaction history.

Decentralized Exchanges

DEXs empower users to control their funds, giving them exclusive access to their private keys. These permissionless exchanges reduce the risk of custodian third-parties and diminish the risk of custodian third-parties losing your funds through major hacking events.

Cross-chain money markets are completely cutting off permission-based, custodian exchanges where you need expensive, third-party intermediation to swap bitcoins for other tokens like ETH, BCH, and XRP. Therefore, you can take just seconds to execute fast, borderless, almost-free transactions.

Borrowing and Lending

DeFi allows people to earn high interest on their savings. As crypto-assets stabilize volatility issues, DeFi is empowering crypto users to save profitably. You don’t need banks to store or transfer value. You can just use your smartphone and an internet connection to upload your finances to online savings software with blockchain transparency, security, and profitability.

DeFi platforms offer flexible interest payments, with some paying out interests every second. The best part is that you don’t need credit checks to take out DeFi loans. You only need to collateralize with your long-term investments. DeFi borrowing costs for commercial use are tax-deductible.

Tokenization and Asset Management

The tokenization of assets is at the core of decentralized finance. It’s revolutionizing assets-trading across the globe, offering traders new markets and opportunities. DeFi offers reliable asset and supply-chain management via smart contracts.

You can make international deals and trust total strangers to hold their side of the deal. Smart contracts don’t release payments unless all predetermined conditions are fulfilled. Tokenization is crucial in executing group contracts such as the ones utilized in:

  • Liquidity pools.
  • DeFi insurance protocols.

Parting Shot

The impact of DeFi on the banking sector threatens its existence, but bankers can adopt dApps to survive the storm and thrive. The banking sector won’t disappear, but it will evolve drastically as DeFi revolutionizes how we interact and do business.

Understanding the role of DeFi in 21st commerce is important for your financial future. Remember that these technologies offer cutting-edge convenience, and the market is growing exponentially. Therefore, you need to join in on the benefits or risk falling behind.

What do you think about DeFi, and what are your predictions on 2021 banking? Share your views in the comments section.


Crypto Daily Topic Cryptocurrencies

DeFi vs CeFi Investments: What’s the Difference?

The advent of the blockchain and Bitcoin ushered a new era of transformation in the financial sector. The latter’s successes catalyzed further innovations in this space. One of its earliest adaptations was Centralized Finance( CeFi). Further developments have seen the introduction of Decentralized Finance(DeFi). 

Though the two are diametric opposites of each other, they serve one end: the expansion of financial services. But what do these concepts mean? What are their pros and cons? Can we find commonalities between the two? Finally, is there a way of bridging the divide between them?

This article will use the questions above to differentiate CeFi and DeFi investments. In this way, it aims at deepening your understanding of these crucial financial developments.

Understanding CeFi

CeFi is centralized finance and comprises closed financial markets. It entails a central authority controlling all aspects of transactions between peers. The said authority could be a bank, government, or any other uninvolved third party. 

Salient Features of CeFi

A keen look at CeFi investments reveals several important features. First, there’s a strong emphasis on KYC and AML requirements. In keeping with their jurisdictions’ laws, CeFi service providers require their users to provide personal information, including identity and residence details.

Secondly, CeFi investments are custodial in that they hold their users’ private keys. They are centralized and offer cross-chain services. CeFi investment services also allow for the exchange of different cryptos issued on different blockchains.

Advantages of CeFi

The popularity of CeFi investments speaks of their usefulness. For instance, they guarantee the protection of depositors’ funds. As they’re custodial, CeFi service providers assure their users of the safety and returns on their users’ funds.

Additionally, they undertake to secure one’s private keys. Since the service provider holds the private keys, there’s no danger of ever  losing them. Moreover, they have dedicated customer support systems. 

Disadvantages of CeFi

There are several deficiencies linked to CeFi. Among these are higher transaction fees. Because they use intermediaries in transactions, they charge higher fees. Another shortfall is that they lack transparency as they don’t provide for a public audit of transactions.

The centralized nature denies users control over their funds and makes them invasive in nature. Their  KYC requirements demand full disclosure of personal information. Users can quite easily lose their funds on these since CeFi investments are an easy target for hacking owing to their custodial nature.

Decentralized Finance (DeFi)

DeFi is an acronym for decentralized finance- a movement that champions the provision of P2P financial services. DeFi solutions give parties greater control over their transactions. They achieve this by eliminating centralizing authorities – banks and governments – from the exchanges.

Last year saw a proliferation of DeFi platforms. Currently, the major players in the space include Compound, Yearn Finance, Uniswap, and Marker DAO.

Key DeFi Features

A number of features define DeFi investment projects. To begin with, they are permissionless, which means that anyone can use them, regardless of their geographical location.

On top of that, they depend on Smart contracts, a set of code defining the relationship of the transacting parties. The smart contracts work together with Decentralized apps (Dapps) to automate transactions.

Again, DeFi investments are Blockchain-based. They run on the Ethereum blockchain and have wide applications across the payments, lending, and trading sectors.

Advantages of DeFi

The ballooning of DeFi projects points to them being beneficial. Here’s a rundown of their key advantages. A key feature is that DeFi investments give users autonomy over their funds. The user is the sole custodian of their investment.

Equally, it is expedient as it eliminates third parties, which helps to make it more affordable. Furthermore, DeFi investments are tradeable, thanks to tokenization, which allows for trading in micro-units.

Another key feature is that they’re accessible. DeFi investments are open to everyone, notwithstanding their location. They are also transparent since their deployment on the blockchain opens transactions to public scrutiny.

Disadvantages of DeFi

Although advantageous in many ways, DeFi platforms have their shortcomings. The threat of losing assets ranks highly among those. DeFi users may permanently lose their crypto assets by losing their private keys or mistyping their wallet addresses.

In close tow is the possible exposure to scams. Many cons have infiltrated the DeFi Sector. These take advantage of the absence of centralized control; victims have very little recourse, if any, in such cases. 

Significant Differences Between DeFi and CeFi

The differences between CeFi and DeFi are more than in the terminology. As the following points will indicate, the two platforms are stark contrasts of each other.


Centralized authorities run all aspects of CeFi platforms. The users have to subscribe to a set code of regulations. On the contrary, DeFi platforms look to their user communities for governance. Some of them issue governance tokens that enable holders to participate in the decision-making processes. An example is Compound (COMP).


Both CeFi and DeFi have unique features defining them. For example, CeFi projects are custodial while DeFi projects are non-custodial. Again CeFis offer dedicated customer services, which DeFis don’t.

Further CeFi investments adopt the use of Centralised Exchanges (CEX). On the flip side, DeFi investments use Decentralized Exchanges (DEXs).

Whereas CeFi projects are permissioned, DeFis aren’t. CeFis use third parties to create trust, while DeFis are trustless networks.


CeFi platforms conform to strict regulations of the jurisdictions they operate. In compliance, they undertake thorough KYC and AML reviews of their users. On the other hand, DeFi is nascent and unregulated. They, therefore, dispense with KYC requirements. 

That said, many jurisdictions are instituting regulatory measures in crypto operations. The Securities and Exchange Commission of the US oversees cryptocurrency trade.  At the same time, the European Commission is pushing for a comprehensive legal framework targeting cryptos.


As CeFi runs centralized exchanges, they charge higher fees. The higher fees arise from the need to maintain the platform, pay their staff, improve their offering, among others.

In contrast, DeFi platforms are affordable. They employ decentralized exchanges that don’t provide custody services and don’t have teams engaging in their day to day running.


CeFi and DeFi investment platforms have different approaches to raising liquidity. CeFi projects raise liquidity by matching buyers’ and sellers’ orders akin to forex or stock markets. DeFi projects in reverse employ automated market makers that  pre-fund both sides of the trade.


The custodial nature of  CEXs increases their susceptibility to cyberattacks. Although CeFi platforms invest in robust security systems, it isn’t unusual to hear of major platforms getting hacked.  


DEXs, however, are noncustodial. Thus are less susceptible to such attacks. However, vulnerabilities in their smart contracts could expose them to the theft of funds.

Similarities Between DeFi and CeFi Investments

Although different, the two platforms find convergence in certain areas. For example, they offer similar financial services. These include trading (spot, derivatives, and margin), borrowing and lending, payments, and the development of stablecoins. 

Also, both systems bank on innovation. They use transformative blockchain technology. Further, both serve the digital assets ecosystem.

Parting Shot

CeFi and DeFi platforms are polar opposite. That said, they serve similar functions in payments, lending, and trades. Moreover, both are at different stages of their development, with CeFi having a headstart over DeFi. This gap in development calls for urgent redress. 

To that end, several projects and platforms are working on appropriate solutions. Binance is one of them. Apart from reducing the risks inherent in DeFi, there’s a need to mainstream it. Moreover, there must be a simplification of the DeFi adoption process besides building robust DeFi communities.



What is Ethereum (ETH)?

Ethereum is a very important blockchain in the cryptocurrency world and is responsible for many of the revolutionary technologies that seek to transform the world as we know it.

What is Ethereum?

The cryptocurrency Ethereum is one of the largest cryptocurrency projects in the cryptocurrency industry. Ethereum itself is a digital platform that is based on blockchain or blockchain technology. Its goal is to become a blockchain capable of running decentralized applications.

To achieve this, this project has a blockchain and cryptocurrency with unique features. These include the ability to use and create smart contracts and new tokens. Both are powerful functionalities, which allows it to stand as one of the most complete and powerful blockchains in cryptocurrency.

The currency of the network is called Ether (ETH), and like Bitcoin (BTC), the Ether is characterized by being a cryptocurrency that can be used as a peer-to-peer payment method. An important point is that it uses the Proof-of-Work (PoW) consensus protocol, using the Ethash algorithm. The development of this blockchain began thanks to the work of Vitalik Buterin in 2013.

Technical Characteristics of Ethereum


Ethereum is a cryptocurrency that works by PoW consensus protocol using the Ethash algorithm. This algorithm is designed to be highly demanding and targeted at GPU mining. For this reason, mining was in principle highly decentralized and diverse.

Ethash uses the Keccak hash function, also known as SHA-3. In this way, the algorithm seeks to use highly secure cryptographic elements. At the same time, Ethash is thinking of having an intensive memory and cache usage. Both characteristics are aimed at offering resistance to mining by ASIC and avoiding centralization of it.

Issuance of Cryptocurrencies

This cryptocurrency at the moment has an annual issue limited to 18 million Ethers per year. That is, every year mining activity can generate up to 18 million new currencies. However, the total issue is endless. To achieve the broadcast, the network has a rather peculiar coinbase transaction system. First, if a miner finds the solution of a block it receives as a reward 2 ETH. 

However, Ethereum is a blockchain in constant evolution. One of the important changes that will be seen in Ethereum in the coming years will be the abandonment of PoW to a PoS mining system. With this change, Ethereum will go on to create cryptocurrencies for its blockchain in a completely different way from the current one, avoiding using miners and encouraging greater economic participation in the blockchain.

Gas, the Basis of Everything

Gas is a very typical concept of the Ethereum network. It is used to measure the work done within the blockchain. Each action will count as a single operation or set of operations has a specific cost that is given in Gas units.

Among the functions of the Gas inside the blockchain we can mention:

-Assigns a cost to the execution of tasks. Gas is used to measure the cost of performing a specific action within the blockchain. Each action has a cost in Gas and a set of actions carried out adds the total cost of said operation. In this way, we can see Gas as the price to pay for carrying out actions within the blockchain.

-Helps to improve the security of the system. Since every action has a price, this helps prevent the blockchain from stopping its operation and undermining its security. This is possible because the Gas helps protect the network from spam attacks. 

-Reward the miners. The actions in the blockchain depend on their execution in the hardware that is in the hands of the miners. To pay for this use there is the Gas.

Block Size and Generation Time

Ethereum is characterized by calculating the size of its blocks in a somewhat particular way. Unlike Bitcoin, where its size is limited to 1 MB, in Ethereum its size is limited to a specific amount of Gas. To be more precise, the size limit of the Ethereum blocks is 1.500.000 Gas. 

“A block can contain about 70 payment transactions between accounts, the simplest of the possible transactions.”

Another difference with Bitcoin is block generation time. In Bitcoin, each block is generated every 10 minutes, while in Ethereum this value is variable. Each block was generated approximately every 16 seconds. This means that it is generally quicker to provide confirmations than Bitcoin, which positively impacts its possibilities as a payment system.

Smart Contracts

A smart contract or smart contract is a computer program that performs certain actions preset in your code under certain conditions. Actions that have been reviewed and accepted by the various parties that have “signed” the contract. In this way, the smart contract enforces its programmed conditions by submitting a response according to its clauses in a completely autonomous way.

The technology of smart contracts is one of the fundamental bases of Ethereum and the operation of many of its features. A situation that can be seen especially in the tokens and DApps of this blockchain.

Ethereum Virtual Machine

The Ethereum Virtual Machine (EVM) is a software whose objective is to serve as an abstraction layer in the execution of code that is stored in the blockchain. With this, the aim is to prevent a malicious programmer of a DApp or smart contract from attacking the security of the network nodes and with the network itself.

EVM enables the operation of smart contracts and DApps thanks to the use of the Solidity programming language. This language allows you to program all the logic behind the DApps and smart contracts while allowing the decentralized execution of your code using the EVM.

Smarts contracts and DApps

Smart contracts and DApps are one of the largest uses for Ethereum. The capabilities of these two tools are virtually endless. Since the creation of smart contracts to buy or trade goods or services, their usefulness is only limited by the imagination. On the other hand, DApps are a revolution. They are capable of creating completely decentralized, non-corrodible, safe, and economically self-sustainable applications. We can also mention the platforms of oracles that are built on this network, as in the case of Augur.

Companies Using Ethereum

Ethereum’s capabilities to use smart contracts, build tokens easily and deploy DApps have captured the attention of many companies worldwide. This has meant that the development of Ethereum has had the direct or indirect support of a large business group interested in developing its technology. All these companies have created the so-called Ethereum Enterprise Alliance (EEA) which has more than 100 members. 

Among them are:

Accenture, a company dedicated to technology services and consulting.

AMD, a leader in the development of chipset, CPU, and graphics cards.

BBVA, a Spanish bank with a worldwide presence.

BP Ventures, the investment arm of oil company BP.

Cisco, the world’s largest network company.

Delloite, one of the world’s largest audit, financial, and legal consulting firms.

GoChain, probably the most important company in the development of DApps.

Hyperledger, the world’s largest enterprise blockchain and open source development project.

JP Morgan, one of the world’s largest financial firms.

Microsoft, the world’s largest software development and technology company responsible for Windows development.

Advantages of Ethereum

-It is a multipurpose blockchain thanks to its ability to integrate and use smart contacts.

-The use and development of EVM confer a high level of security to run smart contracts and DApps in a completely decentralized and secure way.

-It has a fast block production which allows you to have a much faster transaction confirmation speed than Bitcoin and other cryptocurrencies.

– Development is not under the control of any authority, its development core is completely decentralized and decisions are made by consensus. In addition, the community has a high impact on decisions about blockchain development.

Crypto Daily Topic Cryptocurrencies

A Complete Guide to DeFi Taxes: Everything You Should Know

2020 was revolutionary for DeFi markets, and investors flooded the young industry with over $7billion from a mere $1.2 billion. As the market cap and number of transactions surged, regulators came up with responsive ways to tax cryptocurrency income. 

Initially, taxes were a foreign concept in crypto realms, but the IRS made definitive tax rules for blockchain transactions. Most digital currency taxation policies are based on cryptocurrencies, but regulation is spilling over to the DeFi markets.

Most crypto users are ignorant of digital currency tax laws, but the IRS will not let you plead ignorance. The federal tax agency is decisively cracking down on crypto tax compliance, and this article will help you gain some valuable insights.

Reading on will help you keep compliant with DeFi taxation requirements. Even more importantly, it will help you navigate DeFi, so you trigger as much tax deductibility as allowed in novel legal confines. 

Crypto Taxes 101

The IRS categorizes digital tokens as properties and not currencies. Bitcoins, for example, are capital assets that can attract profits and losses from transactions.

Reporting your crypto taxes gets harder with the increasing number of blockchain transactions per financial year. The IRS adopted and has never changed its use of first-in, first-out accounting, which means you should determine your net gains/losses on crypto assets.

Profits are categorized as long-term or short-term capital gains. Losses on cryptocurrencies are considered deductible capital losses.

To prevent crypto holders from absconding cumbersome tax computing and filing, the IRS imposes the form 1099-K for all crypto exchange users posting over 200 transactions per year. This file is similar to form 1099-B that stockbrokers use for filing capital losses/gains, but it has some unique provisions.

Introduction to DeFi Taxes

DeFi exists within cryptocurrency realms, enabling digital token users to trade, lend, and borrow via low-cost automation that rules out third-party financial services. In DeFi markets, crypto owners earn interest on lending platforms, and the interest is paid in the same digital currencies.

Therefore, crypto interests increase the number of digital currencies. When you earn interests through your crypto tokens, a different taxable event occurs from profits/losses. Taxable events in DeFi markets transpire when:

  • You trade one cryptocurrency for another via cross-chain money markets, realizing either profits or losses.
  • You trade crypto tokens for fiat currencies, either realizing either profits or losses.
  • You spend digital tokens on goods and services, realizing either profits or losses.
  • You earn in cryptocurrencies, and DeFi services create numerous earning opportunities where you trade your time and skills by executing network protocols. Moreover, some CEOs and athletes prefer getting their salaries in digital tokens.

These taxable events in cryptocurrency transactions are either:

  • Capital gains.
  • Ordinary income.

Ordinary Income vs. Capital Gains Income               

Ordinary income taxes apply for normal jobs, and the IRS doesn’t classify cryptocurrency miners any differently. You must pay according to your marginal tax bracket.

Bitcoin miners and validators on Proof of Stake protocols earn digital tokens for authenticating transactions. These earnings are categorized as ordinary income, and they offer minimal tax savings.

Capital gains income manifests when you swap your digital assets for a higher monetary value than you acquired them. These income streams present significant tax benefits and holidays. For starters, long-term capital gains tax rates are diminished compared to short-term capital gains.

Moreover, you can completely offset capital gains with capital losses. However, capital gains can only offset ordinary income up to $3,000.

DeFi Taxes in Lending and Borrowing

The DeFi ecosystem offers lending opportunities like no other. Your digital currencies can earn interest on Compound, Blanancer, and Uniswap by contributing to liquidity pools or lending directly.

Some DeFi protocols take crypto loans and issue out Liquidity Pool Tokens in return. The currencies you loan out determine the number of tokens from the liquidity pool and ultimately how much interest you make.

Interests that you make on crypto lending platforms qualify as ordinary income for tax purposes. The DeFi ecosystem allows you to boost your revenues, with some platforms paying out interests every second.

The same applies to crypto borrowing platforms. You can borrow bitcoins and other digital tokens to use for business or personal use. Commercial cryptocurrency loans qualify for tax-deductible expenses. Therefore, you can claim relief on costs you incur when borrowing cryptocurrencies for commercial use. 

DeFi Taxes for Unexpected Income from Hard Forks and Token Distribution

Sometimes, blockchain networks award existing users or asset holders with free digital tokens. Such tokens are newly acquired assets with monetary value. Such a transaction is taxable, and the IRS categorizes it as regular income.

Therefore, you must report it within your appropriate tax brackets, and you won’t qualify for many deductions on these earnings. If you use such tokens profitably, file the revenue made on top separately.

Networks like Compound sometimes distribute their native tokens for free to users during initial offerings. For example, the DeFi platform distributed $100 worth of COMP. The users who enjoyed free $100-worth assets owed the IRS whatever your income rate is for that $100.

You won’t pay any more taxes if you hold the COMP, no matter how much they appreciate it. However, you will owe the day you redeem that appreciated monetary value, and you should report the net revenue as capital gains.

If the $100-worth of COMP appreciates to $300 within a year, you will owe short-term capital gains tax for $200 if you sell the COMP or redeem it for products and services. Your capital losses for the COMP are not deductible on the income tax you owe for unexpected digital income.

Cryptocurrency forks are other sources of unexpected digital income. Forks result when validators or miners in a network disagree on blockchain governance. A great example is that of Bitcoin and Bitcoin Cash. They disagreed, and the Fork was quite controversial because it created BTC tokens from scratch.

Investors of parent cryptocurrencies end up with an equal number of forked-off tokens. For example, if you had 4 BTC during the fork, you automatically got 4 BCH, and you became a member of two independent blockchains.

These unexpected incomes are also part of your taxable income, and you pay per your tax bracket. Any gains on them are taxable, and any losses on them are not tax-deductible.

DeFi Taxes in DEXs

Basic taxation rules for cryptocurrencies apply to DEXs. You do not incur taxation for transferring funds from one platform to another, so long as the accounts and funds are yours.

However, when DEXs allow cross-chain asset swaps, an element of profitability occurs. You either gain profits or losses on your initial capital assets.

Reporting DeFi Income on Your Taxes

It is your responsibility to report DEX revenue streams for tax purposes. The advantages of DeFi taxation are abundant. Report all DeFi buys and sells on the IRS Form 8949 for your capital gains filing.

Tax Advantages of DeFi

For starters, DeFi lending converts your currencies to Liquidity Pool Tokens. Your liquidity tokens remain the same, but their value increases over time. You make a capital gain when redeeming your LPTs for the original cryptocurrencies.

DeFi converts what should be your regular income into capital gains income. Consequently, you qualify for deductions if you make losses later selling the tokens.

DeFi allows you to borrow tokens with different cryptocurrencies acting as collateral in Ripple’s XRP for the long-run, but ETC is more profitable in the short-term.

Long-term capital gains offer more deductibles than short-term ones, and you shouldn’t keep selling your XRP to leverage ETH’s profitability. You can borrow ETH with XRP as the collateral if the prospective earnings are more than interest costs.

Tax Disadvantages of DeFi

Whenever you exchange a crypto asset for another, you are most likely triggering a taxable event. This makes it cumbersome to track all profits and losses made every time such DeFi transactions occur.

Tax Treatment Overview on Different Platforms

  • Uniswap

Uniswap executes the Liquidity Pool protocol for its crypto lenders. It empowers you to swap income tax liability for capital gains liability, which is deductible. UNI tokens basically cushion you from future losses on the native coin you want to lend.

  • Maker/Oasis

This DeFi service allows you to harness long-term tax deductions on capital gains. The platform allows you to trade between assets and even earn interest on other assets. They allow you to lock your ETH as collateral, and as it gathers capital gains, you can seize the short-term profitability of other blockchain networks.

  • Compound

Compound is also a Liquidity Pool platform, which converts your ETH to cETH. When the liquidity pool earns interest, the value on your cETH will move from income tax liability to capital gains revenue, deductible for losses.

  • Balancer

Balancer is another Liquidity Pool DeFi service. It’s sort of a tax-lien insurance package against future losses on crypto assets. 

Parting Shot

Ignorance cannot be your defense when you are found to be non-compliant. The DeFi markets are enormous and have the potential to overtake centralized finance in years to come. The IRS knows this fact, as do most sovereign central banks. 

Fortunately, DeFi taxes are friendly, and they offer numerous tax-saving opportunities. You stand to make tremendous capital gains and high, compounding interest rates investing in DeFi. The gains are way bigger than the tax costs. 

Enforcement over DeFi taxes will only get more aggressive, intuitive, and efficient. That’s why you need to read this article and share it with your friends. Take charge of your tax compliance, and share some of your most effective tax filing tips for DeFi transactions. 

Crypto Daily Topic Cryptocurrencies

How to Come Up With a Good Bitcoin Investment Strategy

Surprisingly, many people just buy Bitcoin and fumble with the investment until they make some profit. Investing in Bitcoin is actually a serious venture, and contrary to widespread practice, it needs a strategy! But what is an investment strategy anyway? What constitutes a good strategy? And, does it apply to all forms of Bitcoin investment?

These are the hard questions we seek to answer in this article. 

Is There a Right Way to Invest?

When investing in crypto or any other asset, you can gain or lose. The most successful investors are those who combine tactic, experience, and of course, luck. Since we cannot do anything about experience and luck, we are usually left with the tactic in the playground, and that’s where planning comes in. We’re not saying that there is a right or wrong way to invest. But, if you are really keen on maximizing your profits and keeping risks at bay, then planning for that journey is indispensable.

What is an Investment Strategy?

An investment strategy is a calculated approach that helps an investor make decisions to achieve specific goals. The investor could be seeking to multiply wealth. They could be seeking to protect whatever they already have. Regardless of the circumstances, an investment strategy must consider the investor’s goals, risk tolerance, and future capital needs. 

What Constitutes a Good Strategy?

Keeping in mind the above picture of what an investment strategy is, it is easy to figure out what a good one should be made of. Generally, you can consult the following checklist if you want to come up with a sound Bitcoin investment strategy.

  1. It contains your definition of risk tolerance – Risk is a central component of any investment strategy. Defining your risk tolerance helps you apply brakes when the train is accelerating in the wrong direction. It might sound trivial, but desperate decisions are never far from the mind when things get thick. 
  2. It identifies your goals – An investment strategy is nothing without goals. It should be clear from the start what you want to achieve from such an engagement. 
  3. It should be realistic – If it were that easy to make money, everyone would be rich. The excitement one gets when approaching an investment may mislead them to overshoot.
  4. It should aim at maximizing profits and minimizing risks – well, that’s the whole point of investing. 

This is by no means an exhaustive definition of a good investment. However, it is a fair guide on how to approach planning for your Bitcoin investment. With this background in mind, let us look at how you can develop an award-winning Bitcoin investment strategy.

Step #1 Identify the opportunity and the risk

If there is no opportunity, abort the mission. Diving straight into an investment without identifying whether there is a suitable opportunity sounds like gambling. After all, the whole purpose of venturing into investment is taking advantage of some opportunity. 

Spotting opportunities is not always easy, but sometimes it is. An example of opportunity in Bitcoin investment is the crypto’s rising value. This could be a short term opportunity or something that will outlive this generation (no one knows how long Bitcoin will sustain the uptrend). However you look at it, we must agree that identifying the opportunity is the basis of everything.

With opportunity comes risks. As mentioned earlier, risk is a core part of any investment strategy. The opportunity might be huge, but so could be the risk. If there is reason to believe that the current Bitcoin boom is a fad, the risk associated with investing all your savings would be catastrophic. The bottom line is, you should identify how much risk the opportunity presents and how much of it are you willing to tolerate.

Step #2 Decide how much and for how long

The amount of money you should invest and for how long are crucial parameters. Of course, you’re not planning to hold Bitcoin until you die. But if that is your intention, it should be clear from the onset. Holding assets indefinitely and without a plan defies the purpose of accumulating wealth.

However, this is not a rule cast in stone. For instance, if you plan to protect your wealth, you might want to convert a huge chunk of your dollar savings to Bitcoin, and short time fluctuations will not be a bother because profits will average out over time. 

Step #3 Invest – a plan without action is pointless.

Now that you have a clear goal and an understanding of the opportunities and risks, it is time to invest. Depending on your goals, you may find one investment approach more suitable than others. Typical options for investing in Bitcoin include:

  • Trading – With trading, you can either go for spot trading or derivatives trading. With spot trading, you simply buy Bitcoin when you think it is trading at a low price and sell when you believe the price has gone high enough. Without concrete investment goals, it is difficult to remain disciplined when spot trading as periods of explosive uptrends and epic falls might send you into euphoric buying/ panic selling episodes, respectively.
  • HODLing – This is where you buy Bitcoin and keep it with no intention of using the asset in the short run. This approach may be more suitable if you plan to protect your wealth or diversify your investment portfolio. Wealth stored in Bitcoin can be readily liquidated and converted to fiat money. You can also use such investments to acquire crypto loans. 

Step #4 Monitor your investment

An investment is like a seed – once sowed, the growth journey has only begun. Keeping an eye on your investment helps you to determine whether your strategy needs editing. If you believe you made mistakes in your original plan, there is no shame in revising it until you feel you have gotten it right. It is important to practice emotional control while observing how events unfold during the course of the growth of your wealth. You should also stay updated and keep learning, as that’s the only way to align your strategy with the reality of the market. 

Final Thoughts

Investing in Bitcoin is not complicated, but without planning for it, the chances of going nowhere with your investment are high. A good investment strategy, we have seen, needs to define your goals, your risk tolerance, be realistic, and focus on maximizing profits while keeping risks under control. There is no right or wrong way to invest, but that does not mean a planless investment is also acceptable. Similarly, the four-step approach described above is not the only sound methodology. However, it captures most of the crucial elements that will help your Bitcoin strategy stand out. Feel free to play around with it!