Crypto Crypto Daily Topic

DeFi vs CeFi Investments: What’s the Difference?

Recently in the cryptocurrency world, there’s been a lot of discussion of CeFi vs. DeFi. Many hardcore crypto enthusiasts are pushing for DeFi, while a number of others are pushing for CeFi. So, which one is better? Well, that depends on what you are looking for when it comes to crypto and how you are planning to invest.

The main difference between DeFi and CeFi is that the former involves decentralized infrastructures, where the financial services are governed by communities rather than single entities. In CeFi, all operations are managed by a business or a consortium of companies and organizations. Consequently, the mechanisms differ as well.  

Understanding CeFi

CeFi stands for centralized finance and signifies any transaction in which there is a centralized aspect overseeing the said transaction. This can be anything from a company to the government, or even just an auditor, or otherwise uninvolved third party. Most CeFi service providers implement Know Your Customer (KYC) and Anti Money Laundering (AML) practices to abide by their respective jurisdictions’ rules. That means users have to share their personal information and make sure the funds are not coming from criminal activities.

Many CeFi services operate with custodial wallets, which store users’ private keys. Custodians would do everything possible to keep and manage clients’ crypto funds conveniently. Whenever you trade on popular crypto exchanges like Coinbase, Binance, Bybit, you deal with a CeFi service. These are platforms run by centralized entities responsible for matching buyers and sellers, offering the required features, and making sure the rules are followed by everyone accordingly. As with any business, the profits from fees are shared among company stakeholders.

Besides trading services, companies fall under the CeFi umbrella that offers borrowing, lending, margin trading, and other financial services.

Understanding DeFi

DeFi stands for decentralized finance and applies to any transaction which is simply peer to peer with no third-party involvement. DeFi can also refer to a number of other occasions where people are able to obtain loans or other banking products from dapps.

In a nutshell, DeFi represents a trend or movement that promotes blockchain-powered infrastructures and open-source software to create all kinds of financial services and products, including traditional ones. You can think about services such as lending, trading, issuance of money, payments, insurance, over-the-counter (OTC) trading, staking, financial data, asset management, and more. To visualize it, DeFi is all about transforming traditional banking services into decentralized architectures. So that communities could manage them instead of banks, governments, or regulators.

DeFi is a formidable trend right now, resembling the craze of initial coin offerings (ICOs) from late 2017. The new ecosystem revolves around financial applications developed on blockchain networks. The decentralized applications (dApps) integrate secure permissionless, trustless networks, and eradicate central authority managing the services.

Similarities Between DeFi and CeFi Investments

DeFi and CeFi share some similarities in the sense that they both involve the same financial services. Sometimes the end-user wouldn’t even notice if a crypto service relies on a DeFi or a CeFi infrastructure. At the moment, both CeFi and DeFi enable the same group of financial services, including spot trading, derivatives trading, margin trading, borrowing and lending, payments, and the creation of stablecoins.

Speaking about trading, both CeFi and DeFi platforms can create intuitive interfaces so that newbies could be onboarded effortlessly. Often, the same people and organizations are involved in the development of both CeFi and DeFi projects. After all, both trends are advocating the use of blockchain and digital currencies.

Differences Between DeFi and CeFi

Even though both trends’ fundamental goals are the same – to promote the adoption of decentralized ledger technologies (DLTs) – several significant differences split DeFi and CeFi into two different worlds. Here are the main aspects that differ. 

Features– CeFi and DeFi services provide various features that are unique for each group. For example, most CeFi projects offer custody solutions and have dedicated customer service teams, generally not available in DeFi.

Fees- Usually, centralized exchanges charge higher fees to maintain the platform, pay salaries to the staff, improve their products, and more. Elsewhere, DEX platforms are more affordable to trade on, as they don’t provide custody services and don’t have any team involved in the governance process. Generally, the fee revenue is shared among liquidity providers and token holders that choose to stake their tokens. An example is Uniswap, a crypto swap platform that distributes the funds from fees among liquidity providers.

Regulation- Initially, when the first crypto exchanges facilitated fiat conversions, there was no regulation whatsoever, as governments didn’t fully understand Bitcoin and blockchain. Nevertheless, today most jurisdictions try to regulate crypto operations directly or indirectly. So, this is one of the reasons why most CeFi platforms require KYC verification. In the US, Coinbase is registered with the Securities and Exchange Commission (SEC), while other global platforms moved their headquarters to crypto-friendly jurisdictions like Malta or Estonia. Meanwhile, the European Commission is about to create the most comprehensive legal framework aimed at cryptocurrencies. All in all, there are more jurisdictions in correlation to CeFi services. 

Security– Even though CeFi platforms do their best to maintain a high degree of security, you can regularly find out about some significant exchange being hacked. At the beginning of the year, Chainalysis said that 2019 saw the most hacking attacks ever, though the number of stolen funds had declined drastically compared to 2018.

Liquidity- The way liquidity is achieved in DeFi is very different. In CeFi projects, the platforms match buyers’ and sellers’ orders similarly to forex or stockbrokers. In DeFi, all trading is not carried out automatically on blockchain. Instead, DEX platforms rely on AMMs, an innovative concept in which both sides of a trade are pre-funded by liquidity providers incentivized to locate their funds.


Crypto Daily Topic Crypto Education

Cryptocurrencies: An Effective Strategy for Your Investments

The unprecedented growth of the cryptocurrency market has created fortunes for a few “early adopters” who risked seed money on a new and relatively unknown technology before 2015. This has attracted interest from investors around the world, many with the intention of seeing three-figure returns in a matter of weeks.

In this article, we will never pretend to explain how to make you rich in a couple of months, and not why we don’t want it, but why it would be really it is not very prudent to invest in the world of cryptocurrencies with that premise. It is important to understand that investors who made fortunes were people who invested their capital in a temporary scenario where the perceived risk was really high, few people knew bitcoin, was associated with terrorism and arms trafficking, the future of these currencies was completely unknown…

A posteriori it is very easy to think that it should have been reversed, but those who made the decision at the time were not so clear and in many cases, the motivations were more socio-cultural than not economic. Not to mention the drops of up to 90% that they had to endure without selling to get the returns that now so amaze us.

As any investment has a very direct relationship between risk and return, now the risk is lower than in 2013 therefore the expected return is also. In any case, the current risk remains much higher than that of equity, for example, and for that reason can be a really interesting investment with a sound strategy and good risk management within the crypto market, so that we can opt for returns that we are not used to.

The idea is very simple, it finds the best value proposals, backed with the right resources, identifies good times of entry, and invests the right amount to not put at risk a large part of the portfolio.

Find the Best Value Proposals

We have to keep in mind that cryptocurrency projects use blockchain technology to cover a need in a different way. The first premise we will have to take into account is: does the project we plan to invest in really need the blockchain and the token to work? Could the same solution be offered without Blockchain? Does the need it seeks to cover really exist?

With these first questions, we can get an idea of if it really is an innovation and improvement or if on the other hand, it has wanted to put the Blockchain to the force in a system that did not need it.

From here it is necessary to assess a series of parameters that allow us to obtain an overview at the fundamental level of the project.

The main parameters would be:

Quality of whitepaper: This document is the DNA of the project, to distinguish the quality of the others it is necessary to read the whitepapers of projects that have already demonstrated their solidity and compare them with the new ones that we are inspecting. It is important to understand at a basic level the operation of the project and to be able to visualize its technical feasibility. It can be useful to rely on forums like bitcoin talk to better understand the project.

Team: It is a very important element, as in any startup the human team behind and their ability to overcome complex situations is what can make the difference between the failure or the success of the project. Interesting to see their “faces” on the web as this shows that they trust their work by putting their reputation on the line. It is also important that they have recognized “advisors” within the blockchain ecosystem to collaborate on the project.

Capitalization/#users 2: This metric is very interesting to keep in mind since most projects related to cryptocurrencies have the community effect, that is their value should increase proportionally to the square of the number of users. Values lower than the unit are ideal, although in many cases you see values that exceed one hundred or even one thousand, which would be an indicator to stay away from such criticism, showing a symptom of being overrated.

Limited units: It is essential that the founders do not have the capacity to create new units when they so wish.

Roadmap: All projects must have a well-structured and justified planning of the steps that will follow in the short, medium, and long term.

Github: This tool is a collaborative development platform. Most major projects have a thread on this platform and the developer community validates the quality of the code and makes new contributions to improve the project. We need to look at the size of this community.

We advise you to weigh these parameters according to their relative importance and obtain an overall score.

Finding a Good Time to Buy

Although I consider that a cryptocurrency must overcome the fundamental filter to be considered as a purchase option, it is not enough reason. The price has to confirm the purchase decision. Doesn’t make any sense, nor is it advisable, to invest in an apparent good project if your quote does not get out of a bearish trend, this fact could mean that the project is not as good as we think or that there may be some public or private information that we do not know.

We could understand price as a reflection or representation of the fundamental state of cryptocurrency in the medium and long term. So I don’t want to invest the capital in currencies that rise but do not have good foundations, nor in those that have them but fall. As you can see, I just want to invest in the ones that are fundamentally good and with their price rising.

To do this, after the fundamental analysis we must optimize the entry points, exit points, and the amount invested. Even if the best coins are filtered, without a good selection of entry and exit, or risk management, money is lost.

Let us briefly explain the basis of the strategy:

Looking at the chart with daily sails, from right (present) to left (past) we look for relative highs (MR) and relative lows (MR). An MR is the maximum point of a candle that is higher than the maximum of the previous three candles and at the same time exceeds the maximum of the next. An MR is formed when it meets the opposite condition, where the sail minimum is less than the minimum of the three previous and the next candles.

1) When we find an MR or MR we continue from right to left until we find in total two alternating maxima and minima, as shown in figure 1.

2) We will consider a possible purchase when MR and MR pairs follow an upward trend.

3) We place a Stop Purchase order just one satoshi above the MR, and the StopLoss (SL) just one satoshi below.

 4) Each time the price creates a new MR and subsequently exceeds it, we will raise the SL just below the last MR.

5) We will keep the crypto in our wallet until the SL jumps. As you can see, we never limit profits by selling to the market or with Take Profits, but we let the price rise freely. On the other hand, losses are always cut at once. If we adjust the SL regularly when a change of trend appears, our tokens will be sold quickly and so we can invest the money in another cryptocurrency that has better prospects.

Risk Management

Everyone should know their risk aversion profile and should decide the proportion of the portfolio they want to risk per trade. As a general rule, I think it is optimal to risk 2% of the capital per operation, starting with 4 operations (8% total portfolio risk) and opening a new position once we have increased the SL from a previous operation above its purchase price.

In this way, exponential returns with limited risk may be eligible.

Diversification in a portfolio of cryptocurrencies is complicated as these are assets that belong to the same market. In any case, we should try to diversify at least taking into account the following two points:

– Market Cap: investing in large, medium, and small

– Typology: crypts that have currency functions (BTC, LTC, XMR…), blockchain infrastructure (ETH, NEO, NEM), and DAPPs (GNT, GNO, SC..)

Crypto Crypto Daily Topic

Common Misconceptions About Cryptocurrency Trading

Cryptocurrencies like Bitcoin and Ethereum are increasingly becoming more and more popular as tradable assets, and cryptocurrencies will only continue to grow from here. Despite their popularity, there are still quite a few misconceptions about them, things that people do not fully understand and this bleeds over into the trading world. Below are some of the misconceptions that many people have about cryptocurrencies and trading them.

Bitcoin Is a Bubble

For many people, this is the big one and they look at Bitcoin the same as they did the dot com bubble that burst all those years ago, yet if it was similar to the dot com bubble, that would actually give it quite a lot of backing. Yes, the internet collapsed and the bubble burst, but look at it now, it is taking over the world again, and the same could be said for bitcoin. Even if bitcoin is a bubble, that may not actually be a bad thing at all, if the bubble is burst, it will help to get rid of certain people from the ecosystem and this would then allow the system to grow again, much like the dot com bubble did all those years go. Just because something bursts, does not mean that it will not recover, so while there is no evidence of bitcoin being a bubble, even if it is, that is not necessarily a bad thing.

When it comes to trading, this is one of the things holding people back, simply because they do not wish to trade it or to purchase it in order to trade if there is the idea in the back of their, minds that it is a bubble and that it will at some point burst and the value to dramatically drop. They don’t want to be holding onto trades just in case that happens, and that is a fair assumption, again though this can be countered by simply accepting that it may not be a bubble at all, or if that is not enough, simply take smaller trades and don’t hold them for extended periods of time.

It’s Too Risky/Volatile

Trading cryptocurrencies is volatile, there is no doubt about that, but that is the attraction behind it and why so many people have decided to trade it in the first place. Saying that it is too risky because of this is not right though. There are risks, as there are with trading any sort of asset, but there are also things that you can do to help mitigate the risks, your risk management does not change at all from trading forex to trading cryptocurrencies. You will still be placing stop losses, you will still be keeping a risk to reward ratio, the only main difference is that the price will most certainly jump about quite a bit more, which can make it look a lot riskier, even when it actually isn’t.

It’s Hard to Get

Some people still feel that it is quite hard to buy cryptocurrencies like bitcoin, in order to trade it you of course need it, which is not actually true. You do not need to physically have any cryptocurrencies in your wallet in order to trade, many brokers are now offering various different cryptocurrencies on their trading platforms. You can trade them right next to your favorite currencies or assets. It is as simple as depositing your money, selecting the crypto coin to trade, and then trading like normal. You can buy and sell just like a currency, so it is no harder to trade cryptocurrencies than it is to trade any other asset or currency. Even if you did want to buy it directly in order to trade, here are plenty of places that allow you to buy with PayPal or your credit/debit card.

Trading the Big Ones

Many people when they think about trading cryptocurrencies they often only think of the big ones, such as Bitcoin and Ethereum. In truth, there are far more than you can trade. In fact, there are hundreds of different pairs available with various brokers or exchanges. Being able to trade far more than just the big ones gives incredible amounts of variety and opportunities to make a profit. So if there is a coin that you are thinking that you wish to trade, it is more than likely available as a tradable asset on a broker platform somewhere or even on an exchange out there. If you want to trade it, you can find it.

Troubles Selling

A few years back when cryptocurrencies weren’t quite as popular, it was far harder to sell then, you had to find someone that was interested in making the purchase and then had to deal with them directly, it was difficult to do, took time and had a lot of risks involved. These days though it is incredibly easy. If you have been trading bitcoin and have made a profit, there are more than just a few ways in which you can sell the bitcoins and convert them back to your local currency. This can often be done through bank wire transfers, credit or debit card withdrawals, and even payment processors like PayPal. It is incredibly easy and incredibly quick to withdraw your bitcoin and convert it back into a fiat currency.

So those are just some of the things that people often have misconceptions about when it comes to cryptocurrency trading, there are hundreds of coins and tokens available to trade, and it is incredibly easy to do, becoming more and more accessible with both exchanges and brokers offering them as tradable assets. It can be a little riskier, but with the right risk management techniques, it will manage those risks and make it a lot safer to trade. So if you are interested in it but have some doubts, then take the plunge, choose a broker or exchange and get involved in the world of cryptocurrency trading.

Crypto Crypto Daily Topic

Horrible Mistakes You’re Making With Crypto Trading

When it comes to crypto trading, there are a number of mistakes that all of us are making. Some mistakes are okay, as they don’t really affect our accounts or our emotions, others though can be horrible, so bad that they have a massive effect on pretty much everything that we do. Let’s take a look at some of the horrible mistakes that we see happening quite a lot and what we can do to try and avoid them in the future.

Trading the Same As Forex

Crypto trading looks very similar to regular forex trading, in fact, it uses the same trading platforms and the same charts, from the outside it looks pretty much the same. In reality, the way that it works is very different, but a lot of people fall into the trap of trading crypto the same way that they do with forex. There are some fundamental differences to them, firstly the amount of money being traded is a lot lower, so the markets are a lot more volatile, the markets are also not quite as open as you would think when it comes to crypto.

In the forex world, a single trader can’t make much of a difference, but when it comes to trading, a single trade can cause the markets to shift. The markets are controlled by the people rather than the markets controlling them, so the price is all based on what people want it to be. There are also much larger movements, both up and down, making it far riskier, so you need to ensure that you understand it before you trade. You cannot use the same tactics with crypto trading as you do with forex trading.

Trading Too Much

The trade sizes when it comes to crypto trading vary a lot, 1 lot does not always mean 1 coin. For some it does, things like bitcoin, a 1 lot trade may be trading 1 bitcoin, but if you trade XRP, 1 lot may mean 100 XRP, this can drastically affect your trading. You need to understand how much it is that you are going to be trading. Due to this, many crypto traders start out trading far too much. One major issue with placing trades that are too big is the volatility that comes with crypto trading. The markets are a lot more, so when you have a large trade, one that is too big for your account, as soon as the markets shift the wrong way and they can shift a lot, your account will be in trouble.

Not Watching the News

The crypto markets can be heavily influenced by news about the coin that you are trading or even a coin that you are not. Things like a big business taking up a currency into their service, or a country banning crypto can have a huge effect on the markets. You need to keep an eye on what is going on in the crypto world, if you do not, you may get caught out as you are treading a coin that has just been banned and the price will drop, but you won’t know that and you will only be greeted by the aftermath of a potentially blown account. There are a lot of sites out there that are quick to get the news up, use them regularly, even if it is just when you are on the toilet, as long as you are keeping up to date, you will be better protected from any sudden movements due to news events.

Not Using Risk Management

Risk Management is a key part of forex trading and it is also a key part of crypto trading, if you are trading without any form of risk management then you are asking for your account to blow. It is far riskier to trade crypto without a risk plan than it is forex too. The markets move so much that a single trade could very quickly blow and account if there aren’t things like stop losses in place, it is also vital that you understand how much you’re trading, as we mentioned above, different trade sizes mean different things depending on the coin that you are using. Risk management is key to keeping your account alive, yet so many people are convinced that a coin will go up that they trade without one, only to find the price drop and they lose quite a lot of money in the process. Always use risk management, no matter how sure you are of a trade, as nothing is guaranteed.

Trading With A Small Account Balance

One of the things that make trading so accessible is the fact that many brokers are now allowing you to trade with as little as $10. That is great but it does come with its own problems, if you want to trade successfully then you need a lot more money, in fact with some brokers a $10 account will allow you to place a single 0.01 lot trade on bitcoin, but as soon as the market moves down, even a few pips, the account will blow. You need a lot more to trade well on crypto than you do forex simply because the markets move a lot and the amount that you are trading is a lot higher, especially as you do not get as much leverage when it comes to crypto trading. So if you want to start, start with at least a few hundred, not the minimum that any broker will allow you to open an account with.

Putting All Your Eggs In One Basket

This is a phrase that you probably heard before, that you should not put all of your eggs into one basket. This basically means two things here, firstly that you should not put your entire balance into a single trade, and that you should not only trade single crypto coins. If we look at the latter, there are a lot of coins available, many of the crypto-focused brokers are now offering 30+ different crypto coins to trade, so there is a lot of variety. It is recommended that you do not trade only one, you need to diversify. Trading only one means that you are tied to its performance, if it is not doing well, neither will you, but if you diversify, even if one does not do well, others might, which will mean that you will negate any losses from the first coin. Try and trade more than one, but not too many for it to overwhelm you.

Those Are some of the horrible mistakes that we see a lot of crypto traders doing, the good thing is that most of them are very easily rectified by making a change to your trading plan or by simply changing your view of things. We all make mistakes when it comes to trading and we will continue to do so, what is important for us and the development of our trading is that we are able to recognise those mistakes and to learn from them, to adapt so that in the future we can do better and be a much more profitable trader overall.

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!


Crypto Daily Topic Cryptocurrencies

Impact of DeFi in the Banking Sector

Blockchain is revolutionary fintech, and DeFi applications are taking success in financial services to a whole new level. Over 1.7 billion people remain unbanked, and DeFi is empowering internet users with permissionless financial services that cut out third parties.

Investors locked more than $15 billion within DeFi protocols in 2020. While decentralization has only captured billions, traditional, centralized finance controls the vast trillions of dollars transacting globally. Therefore, more innovations and marketing will suffice for further adoption.

However, with the industry admitting roughly $500 million from investors monthly, the prospects are changing. DeFi offers irresistible convenience and cost-effectiveness. The potential is also vast.

DeFi encompasses digital lending, borrowing, staking for capital gains, and regular income. DeFi services are permissionless, and they execute most transactions through tokenization and smart contracts. Eliminating all the third-parties and profit-seeking intermediaries make DeFi cost-effective.

Laws, rules, and regulations are programmed into blockchain protocols, and DeFi impacts every aspect of traditional financial services via automation. The impact is so great that it could change human interactions on an international scale.

In this article, we are peering into DeFi and its impact on the finance industry. A chronological outlook of blockchain developments suggests a pattern of innovation and adaptability. Understanding this pattern is crucial for your future investment projects.

The Ethereum Blockchain: How Are dApps Taking over the Banking Sector?       

To start with, let’s appreciate that the Ethereum community has revolutionized and accentuated DeFi as no other blockchain has. The ecosystem is advanced enough to evaluate systemic risks, and it reports DeFi Scores for platform security.

The ecosystem supports open-source composability, and the Ethereum blockchain harnesses the collaboration of independent developers worldwide. Borderless, open-source development has encouraged software designers and coding experts to focus on their strengths.

Ethereum’s infrastructure allows users to integrate various DeFi applications covering vast, diverse industries such as gaming, credit, supply-chain management, and capital markets. Laying and building applications on each other creates a vast network effect.

The Ethereum community is significant in DeFi because its network has over 7,083 live, global, main-net nodes, over 88 million unique users, over 42 million smart contracts executed.

You can utilize over 2,773 decentralized applications along with over 23K daily users. DApps are popular and post daily transactions exceeding 78K because of their:

  • Open-source codes.
  • Decentralized consensus and governance.
  • Noncustodial, permissionless services.
  • Tokenization and the use of smart contracts.

The diversity of dApps supports digital currency banking services, alternative services, DEXs, and P2P lending. Users embrace digital transactions because they are fast, secure, borderless, pseudo-anonymous, and irreversible.

Cross-chain interoperability came into DeFi markets in 2020, and you can now lend, borrow, and trade tokens across different blockchain networks.

How DeFi Saved Global Finance from Total Atrophy

When the Coronavirus became a global pandemic, states imposed mandatory lockdowns. Globally, the banking sector came to a standstill, and the international exchange services and other intermediaries such as asset managers, insurers, and bankers.

People were required to stay at home, and only essential services were allowed to proceed. If we didn’t have alternative financial services, most global supply chains would have suffered complete atrophy.

Governments created concerns about the value of money when they printed cash to bail out people and agencies. People and investors got more concerned that they pay taxes, yet governments dilute their savings by printing more money.

The threat to traditional finance was runaway inflation and the concern that credit is limited for those needing it the most. The international investment landscape went through shocks as investors turned to DeFi, seeking to mitigate the effects of a global pandemic.

Fintech Verticals Most Impacted by DeFi

Open Banking and Financial Data

Data is one of the most valuable commodities in the Mega Big Data era. Banking institutions traditionally hoarded all the financial data of users. In the US, financial data is worth over $15 billion. However, bankers won’t let you access it.

DeFi frees up your financial data for your benefit, allowing you to make intuitive, cost-effective investments. DeFi applications and services are providing open-source, immutable, financial market data.

Moreover, pseudo-anonymity and permissionless transactions prevent a handful of corporations from accessing your private transaction history.

Decentralized Exchanges

DEXs empower users to control their funds, giving them exclusive access to their private keys. These permissionless exchanges reduce the risk of custodian third-parties and diminish the risk of custodian third-parties losing your funds through major hacking events.

Cross-chain money markets are completely cutting off permission-based, custodian exchanges where you need expensive, third-party intermediation to swap bitcoins for other tokens like ETH, BCH, and XRP. Therefore, you can take just seconds to execute fast, borderless, almost-free transactions.

Borrowing and Lending

DeFi allows people to earn high interest on their savings. As crypto-assets stabilize volatility issues, DeFi is empowering crypto users to save profitably. You don’t need banks to store or transfer value. You can just use your smartphone and an internet connection to upload your finances to online savings software with blockchain transparency, security, and profitability.

DeFi platforms offer flexible interest payments, with some paying out interests every second. The best part is that you don’t need credit checks to take out DeFi loans. You only need to collateralize with your long-term investments. DeFi borrowing costs for commercial use are tax-deductible.

Tokenization and Asset Management

The tokenization of assets is at the core of decentralized finance. It’s revolutionizing assets-trading across the globe, offering traders new markets and opportunities. DeFi offers reliable asset and supply-chain management via smart contracts.

You can make international deals and trust total strangers to hold their side of the deal. Smart contracts don’t release payments unless all predetermined conditions are fulfilled. Tokenization is crucial in executing group contracts such as the ones utilized in:

  • Liquidity pools.
  • DeFi insurance protocols.

Parting Shot

The impact of DeFi on the banking sector threatens its existence, but bankers can adopt dApps to survive the storm and thrive. The banking sector won’t disappear, but it will evolve drastically as DeFi revolutionizes how we interact and do business.

Understanding the role of DeFi in 21st commerce is important for your financial future. Remember that these technologies offer cutting-edge convenience, and the market is growing exponentially. Therefore, you need to join in on the benefits or risk falling behind.

What do you think about DeFi, and what are your predictions on 2021 banking? Share your views in the comments section.


Crypto Daily Topic Cryptocurrencies

DeFi vs CeFi Investments: What’s the Difference?

The advent of the blockchain and Bitcoin ushered a new era of transformation in the financial sector. The latter’s successes catalyzed further innovations in this space. One of its earliest adaptations was Centralized Finance( CeFi). Further developments have seen the introduction of Decentralized Finance(DeFi). 

Though the two are diametric opposites of each other, they serve one end: the expansion of financial services. But what do these concepts mean? What are their pros and cons? Can we find commonalities between the two? Finally, is there a way of bridging the divide between them?

This article will use the questions above to differentiate CeFi and DeFi investments. In this way, it aims at deepening your understanding of these crucial financial developments.

Understanding CeFi

CeFi is centralized finance and comprises closed financial markets. It entails a central authority controlling all aspects of transactions between peers. The said authority could be a bank, government, or any other uninvolved third party. 

Salient Features of CeFi

A keen look at CeFi investments reveals several important features. First, there’s a strong emphasis on KYC and AML requirements. In keeping with their jurisdictions’ laws, CeFi service providers require their users to provide personal information, including identity and residence details.

Secondly, CeFi investments are custodial in that they hold their users’ private keys. They are centralized and offer cross-chain services. CeFi investment services also allow for the exchange of different cryptos issued on different blockchains.

Advantages of CeFi

The popularity of CeFi investments speaks of their usefulness. For instance, they guarantee the protection of depositors’ funds. As they’re custodial, CeFi service providers assure their users of the safety and returns on their users’ funds.

Additionally, they undertake to secure one’s private keys. Since the service provider holds the private keys, there’s no danger of ever  losing them. Moreover, they have dedicated customer support systems. 

Disadvantages of CeFi

There are several deficiencies linked to CeFi. Among these are higher transaction fees. Because they use intermediaries in transactions, they charge higher fees. Another shortfall is that they lack transparency as they don’t provide for a public audit of transactions.

The centralized nature denies users control over their funds and makes them invasive in nature. Their  KYC requirements demand full disclosure of personal information. Users can quite easily lose their funds on these since CeFi investments are an easy target for hacking owing to their custodial nature.

Decentralized Finance (DeFi)

DeFi is an acronym for decentralized finance- a movement that champions the provision of P2P financial services. DeFi solutions give parties greater control over their transactions. They achieve this by eliminating centralizing authorities – banks and governments – from the exchanges.

Last year saw a proliferation of DeFi platforms. Currently, the major players in the space include Compound, Yearn Finance, Uniswap, and Marker DAO.

Key DeFi Features

A number of features define DeFi investment projects. To begin with, they are permissionless, which means that anyone can use them, regardless of their geographical location.

On top of that, they depend on Smart contracts, a set of code defining the relationship of the transacting parties. The smart contracts work together with Decentralized apps (Dapps) to automate transactions.

Again, DeFi investments are Blockchain-based. They run on the Ethereum blockchain and have wide applications across the payments, lending, and trading sectors.

Advantages of DeFi

The ballooning of DeFi projects points to them being beneficial. Here’s a rundown of their key advantages. A key feature is that DeFi investments give users autonomy over their funds. The user is the sole custodian of their investment.

Equally, it is expedient as it eliminates third parties, which helps to make it more affordable. Furthermore, DeFi investments are tradeable, thanks to tokenization, which allows for trading in micro-units.

Another key feature is that they’re accessible. DeFi investments are open to everyone, notwithstanding their location. They are also transparent since their deployment on the blockchain opens transactions to public scrutiny.

Disadvantages of DeFi

Although advantageous in many ways, DeFi platforms have their shortcomings. The threat of losing assets ranks highly among those. DeFi users may permanently lose their crypto assets by losing their private keys or mistyping their wallet addresses.

In close tow is the possible exposure to scams. Many cons have infiltrated the DeFi Sector. These take advantage of the absence of centralized control; victims have very little recourse, if any, in such cases. 

Significant Differences Between DeFi and CeFi

The differences between CeFi and DeFi are more than in the terminology. As the following points will indicate, the two platforms are stark contrasts of each other.


Centralized authorities run all aspects of CeFi platforms. The users have to subscribe to a set code of regulations. On the contrary, DeFi platforms look to their user communities for governance. Some of them issue governance tokens that enable holders to participate in the decision-making processes. An example is Compound (COMP).


Both CeFi and DeFi have unique features defining them. For example, CeFi projects are custodial while DeFi projects are non-custodial. Again CeFis offer dedicated customer services, which DeFis don’t.

Further CeFi investments adopt the use of Centralised Exchanges (CEX). On the flip side, DeFi investments use Decentralized Exchanges (DEXs).

Whereas CeFi projects are permissioned, DeFis aren’t. CeFis use third parties to create trust, while DeFis are trustless networks.


CeFi platforms conform to strict regulations of the jurisdictions they operate. In compliance, they undertake thorough KYC and AML reviews of their users. On the other hand, DeFi is nascent and unregulated. They, therefore, dispense with KYC requirements. 

That said, many jurisdictions are instituting regulatory measures in crypto operations. The Securities and Exchange Commission of the US oversees cryptocurrency trade.  At the same time, the European Commission is pushing for a comprehensive legal framework targeting cryptos.


As CeFi runs centralized exchanges, they charge higher fees. The higher fees arise from the need to maintain the platform, pay their staff, improve their offering, among others.

In contrast, DeFi platforms are affordable. They employ decentralized exchanges that don’t provide custody services and don’t have teams engaging in their day to day running.


CeFi and DeFi investment platforms have different approaches to raising liquidity. CeFi projects raise liquidity by matching buyers’ and sellers’ orders akin to forex or stock markets. DeFi projects in reverse employ automated market makers that  pre-fund both sides of the trade.


The custodial nature of  CEXs increases their susceptibility to cyberattacks. Although CeFi platforms invest in robust security systems, it isn’t unusual to hear of major platforms getting hacked.  


DEXs, however, are noncustodial. Thus are less susceptible to such attacks. However, vulnerabilities in their smart contracts could expose them to the theft of funds.

Similarities Between DeFi and CeFi Investments

Although different, the two platforms find convergence in certain areas. For example, they offer similar financial services. These include trading (spot, derivatives, and margin), borrowing and lending, payments, and the development of stablecoins. 

Also, both systems bank on innovation. They use transformative blockchain technology. Further, both serve the digital assets ecosystem.

Parting Shot

CeFi and DeFi platforms are polar opposite. That said, they serve similar functions in payments, lending, and trades. Moreover, both are at different stages of their development, with CeFi having a headstart over DeFi. This gap in development calls for urgent redress. 

To that end, several projects and platforms are working on appropriate solutions. Binance is one of them. Apart from reducing the risks inherent in DeFi, there’s a need to mainstream it. Moreover, there must be a simplification of the DeFi adoption process besides building robust DeFi communities.


Crypto Daily Topic Cryptocurrencies

A Complete Guide to DeFi Taxes: Everything You Should Know

2020 was revolutionary for DeFi markets, and investors flooded the young industry with over $7billion from a mere $1.2 billion. As the market cap and number of transactions surged, regulators came up with responsive ways to tax cryptocurrency income. 

Initially, taxes were a foreign concept in crypto realms, but the IRS made definitive tax rules for blockchain transactions. Most digital currency taxation policies are based on cryptocurrencies, but regulation is spilling over to the DeFi markets.

Most crypto users are ignorant of digital currency tax laws, but the IRS will not let you plead ignorance. The federal tax agency is decisively cracking down on crypto tax compliance, and this article will help you gain some valuable insights.

Reading on will help you keep compliant with DeFi taxation requirements. Even more importantly, it will help you navigate DeFi, so you trigger as much tax deductibility as allowed in novel legal confines. 

Crypto Taxes 101

The IRS categorizes digital tokens as properties and not currencies. Bitcoins, for example, are capital assets that can attract profits and losses from transactions.

Reporting your crypto taxes gets harder with the increasing number of blockchain transactions per financial year. The IRS adopted and has never changed its use of first-in, first-out accounting, which means you should determine your net gains/losses on crypto assets.

Profits are categorized as long-term or short-term capital gains. Losses on cryptocurrencies are considered deductible capital losses.

To prevent crypto holders from absconding cumbersome tax computing and filing, the IRS imposes the form 1099-K for all crypto exchange users posting over 200 transactions per year. This file is similar to form 1099-B that stockbrokers use for filing capital losses/gains, but it has some unique provisions.

Introduction to DeFi Taxes

DeFi exists within cryptocurrency realms, enabling digital token users to trade, lend, and borrow via low-cost automation that rules out third-party financial services. In DeFi markets, crypto owners earn interest on lending platforms, and the interest is paid in the same digital currencies.

Therefore, crypto interests increase the number of digital currencies. When you earn interests through your crypto tokens, a different taxable event occurs from profits/losses. Taxable events in DeFi markets transpire when:

  • You trade one cryptocurrency for another via cross-chain money markets, realizing either profits or losses.
  • You trade crypto tokens for fiat currencies, either realizing either profits or losses.
  • You spend digital tokens on goods and services, realizing either profits or losses.
  • You earn in cryptocurrencies, and DeFi services create numerous earning opportunities where you trade your time and skills by executing network protocols. Moreover, some CEOs and athletes prefer getting their salaries in digital tokens.

These taxable events in cryptocurrency transactions are either:

  • Capital gains.
  • Ordinary income.

Ordinary Income vs. Capital Gains Income               

Ordinary income taxes apply for normal jobs, and the IRS doesn’t classify cryptocurrency miners any differently. You must pay according to your marginal tax bracket.

Bitcoin miners and validators on Proof of Stake protocols earn digital tokens for authenticating transactions. These earnings are categorized as ordinary income, and they offer minimal tax savings.

Capital gains income manifests when you swap your digital assets for a higher monetary value than you acquired them. These income streams present significant tax benefits and holidays. For starters, long-term capital gains tax rates are diminished compared to short-term capital gains.

Moreover, you can completely offset capital gains with capital losses. However, capital gains can only offset ordinary income up to $3,000.

DeFi Taxes in Lending and Borrowing

The DeFi ecosystem offers lending opportunities like no other. Your digital currencies can earn interest on Compound, Blanancer, and Uniswap by contributing to liquidity pools or lending directly.

Some DeFi protocols take crypto loans and issue out Liquidity Pool Tokens in return. The currencies you loan out determine the number of tokens from the liquidity pool and ultimately how much interest you make.

Interests that you make on crypto lending platforms qualify as ordinary income for tax purposes. The DeFi ecosystem allows you to boost your revenues, with some platforms paying out interests every second.

The same applies to crypto borrowing platforms. You can borrow bitcoins and other digital tokens to use for business or personal use. Commercial cryptocurrency loans qualify for tax-deductible expenses. Therefore, you can claim relief on costs you incur when borrowing cryptocurrencies for commercial use. 

DeFi Taxes for Unexpected Income from Hard Forks and Token Distribution

Sometimes, blockchain networks award existing users or asset holders with free digital tokens. Such tokens are newly acquired assets with monetary value. Such a transaction is taxable, and the IRS categorizes it as regular income.

Therefore, you must report it within your appropriate tax brackets, and you won’t qualify for many deductions on these earnings. If you use such tokens profitably, file the revenue made on top separately.

Networks like Compound sometimes distribute their native tokens for free to users during initial offerings. For example, the DeFi platform distributed $100 worth of COMP. The users who enjoyed free $100-worth assets owed the IRS whatever your income rate is for that $100.

You won’t pay any more taxes if you hold the COMP, no matter how much they appreciate it. However, you will owe the day you redeem that appreciated monetary value, and you should report the net revenue as capital gains.

If the $100-worth of COMP appreciates to $300 within a year, you will owe short-term capital gains tax for $200 if you sell the COMP or redeem it for products and services. Your capital losses for the COMP are not deductible on the income tax you owe for unexpected digital income.

Cryptocurrency forks are other sources of unexpected digital income. Forks result when validators or miners in a network disagree on blockchain governance. A great example is that of Bitcoin and Bitcoin Cash. They disagreed, and the Fork was quite controversial because it created BTC tokens from scratch.

Investors of parent cryptocurrencies end up with an equal number of forked-off tokens. For example, if you had 4 BTC during the fork, you automatically got 4 BCH, and you became a member of two independent blockchains.

These unexpected incomes are also part of your taxable income, and you pay per your tax bracket. Any gains on them are taxable, and any losses on them are not tax-deductible.

DeFi Taxes in DEXs

Basic taxation rules for cryptocurrencies apply to DEXs. You do not incur taxation for transferring funds from one platform to another, so long as the accounts and funds are yours.

However, when DEXs allow cross-chain asset swaps, an element of profitability occurs. You either gain profits or losses on your initial capital assets.

Reporting DeFi Income on Your Taxes

It is your responsibility to report DEX revenue streams for tax purposes. The advantages of DeFi taxation are abundant. Report all DeFi buys and sells on the IRS Form 8949 for your capital gains filing.

Tax Advantages of DeFi

For starters, DeFi lending converts your currencies to Liquidity Pool Tokens. Your liquidity tokens remain the same, but their value increases over time. You make a capital gain when redeeming your LPTs for the original cryptocurrencies.

DeFi converts what should be your regular income into capital gains income. Consequently, you qualify for deductions if you make losses later selling the tokens.

DeFi allows you to borrow tokens with different cryptocurrencies acting as collateral in Ripple’s XRP for the long-run, but ETC is more profitable in the short-term.

Long-term capital gains offer more deductibles than short-term ones, and you shouldn’t keep selling your XRP to leverage ETH’s profitability. You can borrow ETH with XRP as the collateral if the prospective earnings are more than interest costs.

Tax Disadvantages of DeFi

Whenever you exchange a crypto asset for another, you are most likely triggering a taxable event. This makes it cumbersome to track all profits and losses made every time such DeFi transactions occur.

Tax Treatment Overview on Different Platforms

  • Uniswap

Uniswap executes the Liquidity Pool protocol for its crypto lenders. It empowers you to swap income tax liability for capital gains liability, which is deductible. UNI tokens basically cushion you from future losses on the native coin you want to lend.

  • Maker/Oasis

This DeFi service allows you to harness long-term tax deductions on capital gains. The platform allows you to trade between assets and even earn interest on other assets. They allow you to lock your ETH as collateral, and as it gathers capital gains, you can seize the short-term profitability of other blockchain networks.

  • Compound

Compound is also a Liquidity Pool platform, which converts your ETH to cETH. When the liquidity pool earns interest, the value on your cETH will move from income tax liability to capital gains revenue, deductible for losses.

  • Balancer

Balancer is another Liquidity Pool DeFi service. It’s sort of a tax-lien insurance package against future losses on crypto assets. 

Parting Shot

Ignorance cannot be your defense when you are found to be non-compliant. The DeFi markets are enormous and have the potential to overtake centralized finance in years to come. The IRS knows this fact, as do most sovereign central banks. 

Fortunately, DeFi taxes are friendly, and they offer numerous tax-saving opportunities. You stand to make tremendous capital gains and high, compounding interest rates investing in DeFi. The gains are way bigger than the tax costs. 

Enforcement over DeFi taxes will only get more aggressive, intuitive, and efficient. That’s why you need to read this article and share it with your friends. Take charge of your tax compliance, and share some of your most effective tax filing tips for DeFi transactions. 

Crypto Daily Topic Cryptocurrencies

How to Come Up With a Good Bitcoin Investment Strategy

Surprisingly, many people just buy Bitcoin and fumble with the investment until they make some profit. Investing in Bitcoin is actually a serious venture, and contrary to widespread practice, it needs a strategy! But what is an investment strategy anyway? What constitutes a good strategy? And, does it apply to all forms of Bitcoin investment?

These are the hard questions we seek to answer in this article. 

Is There a Right Way to Invest?

When investing in crypto or any other asset, you can gain or lose. The most successful investors are those who combine tactic, experience, and of course, luck. Since we cannot do anything about experience and luck, we are usually left with the tactic in the playground, and that’s where planning comes in. We’re not saying that there is a right or wrong way to invest. But, if you are really keen on maximizing your profits and keeping risks at bay, then planning for that journey is indispensable.

What is an Investment Strategy?

An investment strategy is a calculated approach that helps an investor make decisions to achieve specific goals. The investor could be seeking to multiply wealth. They could be seeking to protect whatever they already have. Regardless of the circumstances, an investment strategy must consider the investor’s goals, risk tolerance, and future capital needs. 

What Constitutes a Good Strategy?

Keeping in mind the above picture of what an investment strategy is, it is easy to figure out what a good one should be made of. Generally, you can consult the following checklist if you want to come up with a sound Bitcoin investment strategy.

  1. It contains your definition of risk tolerance – Risk is a central component of any investment strategy. Defining your risk tolerance helps you apply brakes when the train is accelerating in the wrong direction. It might sound trivial, but desperate decisions are never far from the mind when things get thick. 
  2. It identifies your goals – An investment strategy is nothing without goals. It should be clear from the start what you want to achieve from such an engagement. 
  3. It should be realistic – If it were that easy to make money, everyone would be rich. The excitement one gets when approaching an investment may mislead them to overshoot.
  4. It should aim at maximizing profits and minimizing risks – well, that’s the whole point of investing. 

This is by no means an exhaustive definition of a good investment. However, it is a fair guide on how to approach planning for your Bitcoin investment. With this background in mind, let us look at how you can develop an award-winning Bitcoin investment strategy.

Step #1 Identify the opportunity and the risk

If there is no opportunity, abort the mission. Diving straight into an investment without identifying whether there is a suitable opportunity sounds like gambling. After all, the whole purpose of venturing into investment is taking advantage of some opportunity. 

Spotting opportunities is not always easy, but sometimes it is. An example of opportunity in Bitcoin investment is the crypto’s rising value. This could be a short term opportunity or something that will outlive this generation (no one knows how long Bitcoin will sustain the uptrend). However you look at it, we must agree that identifying the opportunity is the basis of everything.

With opportunity comes risks. As mentioned earlier, risk is a core part of any investment strategy. The opportunity might be huge, but so could be the risk. If there is reason to believe that the current Bitcoin boom is a fad, the risk associated with investing all your savings would be catastrophic. The bottom line is, you should identify how much risk the opportunity presents and how much of it are you willing to tolerate.

Step #2 Decide how much and for how long

The amount of money you should invest and for how long are crucial parameters. Of course, you’re not planning to hold Bitcoin until you die. But if that is your intention, it should be clear from the onset. Holding assets indefinitely and without a plan defies the purpose of accumulating wealth.

However, this is not a rule cast in stone. For instance, if you plan to protect your wealth, you might want to convert a huge chunk of your dollar savings to Bitcoin, and short time fluctuations will not be a bother because profits will average out over time. 

Step #3 Invest – a plan without action is pointless.

Now that you have a clear goal and an understanding of the opportunities and risks, it is time to invest. Depending on your goals, you may find one investment approach more suitable than others. Typical options for investing in Bitcoin include:

  • Trading – With trading, you can either go for spot trading or derivatives trading. With spot trading, you simply buy Bitcoin when you think it is trading at a low price and sell when you believe the price has gone high enough. Without concrete investment goals, it is difficult to remain disciplined when spot trading as periods of explosive uptrends and epic falls might send you into euphoric buying/ panic selling episodes, respectively.
  • HODLing – This is where you buy Bitcoin and keep it with no intention of using the asset in the short run. This approach may be more suitable if you plan to protect your wealth or diversify your investment portfolio. Wealth stored in Bitcoin can be readily liquidated and converted to fiat money. You can also use such investments to acquire crypto loans. 

Step #4 Monitor your investment

An investment is like a seed – once sowed, the growth journey has only begun. Keeping an eye on your investment helps you to determine whether your strategy needs editing. If you believe you made mistakes in your original plan, there is no shame in revising it until you feel you have gotten it right. It is important to practice emotional control while observing how events unfold during the course of the growth of your wealth. You should also stay updated and keep learning, as that’s the only way to align your strategy with the reality of the market. 

Final Thoughts

Investing in Bitcoin is not complicated, but without planning for it, the chances of going nowhere with your investment are high. A good investment strategy, we have seen, needs to define your goals, your risk tolerance, be realistic, and focus on maximizing profits while keeping risks under control. There is no right or wrong way to invest, but that does not mean a planless investment is also acceptable. Similarly, the four-step approach described above is not the only sound methodology. However, it captures most of the crucial elements that will help your Bitcoin strategy stand out. Feel free to play around with it!

Crypto Daily Topic Cryptocurrencies

Now You can Earn Interest on Your Idle Crypto Assets with Nexo

Apart from HODLing and spending, many crypto users have no idea what to do with their crypto assets. Nexo, a leading financial institution for digital assets, provides crypto users with the opportunity to earn interest on their idle crypto assets. Overall, the concept is simple – you entrust your assets with Nexo, they invest them primarily through lending, and you share the returns. It works almost like a traditional investment bank; only that crypto is the main asset here.

Naturally, many questions will emerge regarding the profitability of Nexo’s offerings, its security, usability, and much more – investors are an inquisitive lot. This article will answer some of the most pertinent ones if only that will give you the confidence to join the league of passive investors. 

What Is Nexo?

Before we rush into how to invest with Nexo, let us first understand what it is. Simply put, Nexo is (arguably) the world’s leader in the provision of digital banking services. The company has strived to bring traditional banking to the world of crypto by merging fintech with blockchain. Nexo specializes in providing lending facilities in the DeFi space. According to the company, $5 billion worth of digital loans have been processed on the platform since its establishment in 2018. The company enjoys a user base of over 1 million and is available in nearly every corner of the planet. 

How Do You Earn?

Nexo offers a variety of crypto financial services, with lending at the top of the list. To earn, you need to deposit supported digital assets (both fiat and crypto) to your Nexo account. The following steps should help with the process:

  1. Register for an account on 
  2. Enable 2-factor authentication (this is mandatory)
  3. Scroll down until you find a list of supported crypto assets and select ‘Top Up’ on the one you wish to invest in. Besides the token, you will see how much interest you can earn from each one and what options there are for maximizing your interest.
  4. Nexo will generate a deposit address and a QR code. You can either copy the address or scan the code. It is extremely important to double-check this address before depositing since Nexo puts a disclaimer for funds sent to the wrong address. You can also top up your Nexo account directly from an exchange. If you are depositing BTC, your transaction will appear after 6 nodes have confirmed the transfer. For ETH and other ERC-20 tokens, 50 is the required number of confirmations. 
  5. You can follow the progress of your deposits on the transactions page/ tab.
  6. Interest is earned when you withdraw from your available credit line. The withdraw button is conveniently placed next to the deposit button. 

The steps may look numerous, but really, the entire process can be summarized as ‘top up supported assets and start earning automatically.’ In other words, once you deposit, no other effort is required from you – that’s the true spirit of passive earning. 

Which Digital Assets Can You Invest?

Nexo supports the following digital assets:

  • Bitcoin
  • Ether
  • Litecoin
  • Bitcoin Cash
  • Nexo Token
  • XRP (Ripple)
  • Tether
  • USD Coin
  • Dai
  • Euro
  • GBP
  • Several others

Is Nexo a Good Investment?

As an investor, you have the choice to bid your assets in a portfolio of your choice. So, what would make you choose Nexo first? The following factors might:

  • You can earn up to 12% interest on stablecoins. Interest earned depends on the asset you have deposited and the method you choose for payout. Earning in Nexo for selected stablecoins attracts the full 12% interest.
  • While interest is calculated on an annual percentage rate (APR), payouts are made daily. So you don’t have to wait for end-year dividends like most investments.
  • You can deposit or withdraw funds at any time of your liking.
  • Your deposited assets are backed by a $100 million insurance secured with BitGo.
  • There are no minimum contribution thresholds and no fees charged for funding or withdrawing from your wallet.

Are There Any Risks?

Any keen investor would be worried about the safety of their investment, especially if their assets will be used to extend credit to others. With Nexo, this is not a matter of great concern as your assets and those of others are backed by a $100 million insurance at BitGo. Deposits are also stored in multisig cold storage wallets so you can rest easy as your money works for you. 

Additionally, borrowers have a limit based on their deposited crypto assets. Nexo uses a complex formula to dynamically calculate credit limits based on the dynamic value of digital assets. So, Nexo is unlikely to run out of cash due to overborrowing. 

Lastly, while this is not a risk per se, it is worth noting that first time users may find the platform a little cumbersome to use. The website has only scanty information about what you need to do to get started, and you are likely to fumble around looking for where to click next. Clearly, the platform has not been customised for the crypto investor who’s just starting out. 

Reputation and Regulation 

Nexo boasts of a good reputation among users of crypto financial services. On TrustPilot, a leading consumer review website, 90% of users have ranked it ‘excellent,’ with a score of 4.8/5. The company is also licenced and regulated by the European Central Bank, besides being certified as ISO/IEC 27001:2013 compliant. With such credentials, you can be assured that you will be dealing with a legitimate and tried, and trusted platform. 

But What’s The Catch?

For those who are still not convinced about the viability of Nexo’s business model, questions on where’s the catch will linger. The way this financial institution operates is quite similar to traditional banks – users deposit their assets (usually dollars, euro, etc.), which gives the banks the capital to finance credit and other investments. The only difference is that Nexo cannot rely on traditional loan recovery techniques in case a borrower defaults. Therefore, the company depends on a user’s deposited assets as collateral. You can deposit multiple assets to maintain a positive loan-to-value ratio. This ratio is an indicator of your ability to settle the debt. If you default, Nexo will automatically initiate a sale of your deposited assets until the desired balance is achieved. 

Final Thoughts

‘Earn passively from your idle crypto assets’ sounds just as cool as it is, especially when using Nexo. The platform allows you to deposit a variety of crypto assets and earn up to 12% interest. Interestingly, all you need to do is deposit funds to your Nexo wallet, just as you would do with a crypto exchange. Nexo’s investment terms are quite friendly. For instance, there are no minimum deposits, you can deposit or withdraw at any time, payouts are done daily, and so on. Additionally, the platform ensures the security of your funds is guaranteed by implementing 2-factor authentication for deposits and withdrawals, insuring depositors’ funds, and storing them in multisig cold storage wallets. The only downside with Nexo is the limited information on the website, which might leave new investors struggling to get started. 

Crypto Daily Topic Cryptocurrencies

Earn Passively with VeriBlock’s Latest Tech: Proof of Proof

Innovations in the cryptosphere are fast and wild. Recently, VeriBlock released the novel proof-of-proof protocol, which allows blockchains to inherit Bitcoin’s security. The organization’s unique technology solves two problems simultaneously. First, a diverse ecosystem of blockchains – each focused on addressing a unique need – is secured. Secondly, gains made from the increased adoption of these alternate blockchains will drive more transactions out of the Bitcoin network, thereby increasing Bitcoin’s scalability, and by extension, solving the pioneer blockchain’s major headache.

While this technology is expected to transform Bitcoin and the entire crypto universe, the best part is that you can take part in the revolution and earn passively. 

In this article, we will look closely at this interesting concept and discuss the opportunity in it.

What Is Proof-of-Proof (PoP)?

At the core of it, PoP is a form of mining. VeriBlock envisioned an ecosystem of blockchains – each addressing diverse problems – but with the full security of Bitcoin. But why Bitcoin? You may ask. 

Currently, Bitcoin is the largest cryptocurrency network and is rightfully considered the golden standard of security. Attacking the network would require massive investment in specialized computational infrastructure, all thanks to the high number of nodes in the network paired with its consensus algorithm. It is argued that to stage a 51% attack against Bitcoin, even the world’s fastest supercomputer would be of no use. Smaller blockchains have had to endure this vulnerability for years, but not anymore.

Simply put, VeriBlock’s PoP scheme will allow participating blockchains to use Bitcoin for a second-layer of consensus. So, first, they do their own proof-of-work consensus then push the transactions to Bitcoin through VeriBlock’s blockchain. 

The VeriBlock ecosystem acts as an aggregation layer between alternative blockchains and Bitcoin. Whenever a new blockchain joins this ecosystem, VeriBlock becomes even more decentralized and more secure due to the increased network effect. 

What’s The Deal?

For VeriBlock’s technology to work, PoP miners are needed, and that’s where you come in. As discussed above, the technology works by having transactions mined in their original blockchains then published to Bitcoin in a decentralized, trustless, transparent, and permissionless (DTTP) manner. Hence, your work as a PoP miner will be pushing blockchains, which already have intermediate consensus, to Bitcoin to receive the final security seal. The backend mechanics are complex, but the user’s role is suitable for a layperson.

With VeriBlock’s PoP, everyone stands to benefit. We have seen that PoP miners get their commissions by pushing transactions to the second layer of verification. On the other hand, innovators working on alternative blockchains will see their projects boosted as users become more confident in adopting these blockchains. The thing is, it is easier for developers to build applications on alternative blockchains where speed and scalability are non-issues. But security remains a challenge for such networks. Therefore, it is easy to understand why the whole crypto community should rejoice at the release of this invention.

How Do You Earn?

Unquestionably, VeriBlock’s PoP technology is too complex to be discussed here, but luckily, you do not need to understand the intricacies to participate and earn.

Send Bitcoin, get paid! Earning with VeriBlock’s PoP is that simple. The company has partnered with ZelCore to make this dream a reality. From December 2020, ZelCore users can earn $VBK by sending Bitcoin from their wallets. On the updated wallets, users will find $VBK alongside BTC, BCH, LTC, and other major cryptos. 

For the earning part, all you really need to do is update your ZelCore wallet to get the new feature. Any time you send Bitcoin from your ZelCore wallet, you will be taking part in VeriBlock’s second layer of consensus and getting paid for the hard work. Again, for emphasis, you do not need to do any manual validations – sending BTC is sufficient to earn you rewards.

In the bag of goodies, we also had some 1.5 million $VBK, which was to be shared among the first 15,000 users to upgrade their wallets by December 21. If you did upgrade before then, kudos! If not, your second chance is to earn by sending BTC from your ZelCore wallet.

Rewards are earned in VeriBlock coins ($VBK), which can be converted to other major cryptocurrencies. The conversion is expected to be smooth as $VBK is already listed as an asset in the updated wallet. Paying out earnings through $VBK was necessary because that’s the network that performs the final consensus, which is understandably confusing as Bitcoin would be expected to be doing this task. 

Which Wallets Are Supported?

At the moment, you can only participate in this passive earning scheme if you are using the ZelCore wallet. Some consider this a disadvantage given that the wallet is not open-source, and for being a commercial wallet, users are charged monthly maintenance fees to use some features. Nonetheless, the developers have tried to compensate for this by offering highly reliable customer support and unmatched user experience. 

About the ZelCore Wallet

ZelCore is a multi-asset crypto commercial wallet that supports over 170 digital assets. It integrates the services of a number of major exchanges, including Changelly, InstaSwap, Coinswitch, and Kyber, so you have it all under one roof. The application, which is available for both mobile and desktop devices, offers beautiful interfaces, best-in-class security, including two-factor authentication, great usability, and seamless integration of new features, which the company promises to roll out continuously. 

Why Should You Participate in VeriBlock’s PoP?

First, to earn passively. VeriBlock’s PoP gives ordinary Bitcoin users – those without any special mining equipment – the opportunity to earn from mining. This idea is not only novel but exciting too. It is not often that you can make money by almost investing nothing. Also, mining has, hitherto, been a reserve of those with the financial muscle to invest what it takes to set up the specialized infrastructure.

Secondly, your participation in VeriBlock’s PoP scheme will be for the greater good of the cryptoverse. The growth of alternate blockchains has been hampered significantly by security issues related to the 51% attack. It has been difficult for merchants and exchanges to list tokens from alternate blockchains when the risk of double-spend stares at them. Thus, when you take part in proof-of-proof validations, you are helping alternate blockchains to grow.

Final Thoughts

Earning passively is one of the easiest and effortless ways to earn from crypto. With VeriBlock’s proof-of-proof invention, ordinary Bitcoin users can make extra money by validating transactions. Participating is easy – one only needs to download a ZelCore wallet (or update it for existing users) and start sending BTC from the wallet. There is a slight limitation in the use of the ZelCore wallet as it is a commercial product. Nonetheless, its usability, security, customer support, and its wide variety of features make it worth the trouble. VeriBlock may extend the technology to other wallets, but as to which ones and when, that remains a matter of conjecture. Overall, we may point out a few areas of improvement for VeriBlock’s PoP earning scheme. Still, we must also agree that this is a noteworthy opportunity for Bitcoin users to earn effortlessly.

Crypto Daily Topic Cryptocurrencies

What Is It Like Investing in Tezos (XTZ)?

Smart contract safety, long-term upgradability, and open participation: these are the problems Tezos promised to solve when it was created in 2018. So, the developers built the network to facilitate peer-to-peer transactions and launch smart contracts. Behind the network sits the Tez (also called Tezzie) digital token, which is the focus of this article. 

If you are familiar with Ethereum smart contracts, you might already understand Tezos’ offering. However, the slight difference between smart contracts on these two networks is that Tezos allows participants to directly control the network’s rules. This makes Tezos not just a re-invention of the Ethereum wheel but a rather more flexible and scalable platform for implementing smart contracts. 

Tez can be considered a major crypto. By market capitalization, it ranked #19 at the time of writing. It’s availability in multiple exchange pairs and listing on major exchanges indicates that it is a popular asset among investors. 

This article will look at what it is like investing in Tez and answer questions such as is it a good investment.

What is Unique about Tezos?

One of the things that make Tezos unique is its proof-of-stake consensus. Unlike Bitcoin, consensus on the Tezos network is achieved by stakers, whose mining power depends on how much Tez they hold. Relying on this consensus mechanism might have given the crypto some resilience against the cryptocurrency bear market of 2019. Between October 2019 and February 2020, the crypto recorded triple growth. This is a remarkable movement – at the time of writing this, even Bitcoin, in its current biggest bull run yet, has not attained triple growth.

Performance in 2020

Tezos is known for euphoric investment. During its ICO launch, it raised $232 million, one of the biggest ICOs at the time. Well, in 2020, the crypto has shown similar tendencies – fluctuating between less than a dollar and $4. Such volatility has only been shown by a few cryptocurrencies. Again, we must acknowledge how large these fluctuations are. Despite the relatively low price, the percentage changes are tremendous. 

Tez was trading at roughly $1.3 at the beginning of 2020. By mid-February, it had rallied to trade at $3.7. Prices soon crashed to lows of $1.3 a month later. Between April and July, Tez demonstrated rare stability exchanging at about $2 and only fluctuating slightly. In August, the crypto experienced its largest spike of the year, and at some point, fetched a whopping $4.2 at exchanges. The prices have since dropped to $2, which so far seems like its point of equilibrium.

24-hour trading volumes for the crypto indicate drastic changes in investor activity. There was only 30 million worth of trade per day as the year opened, but by mid-February, this number had increased 10-fold. By mid-August, the volume was 20 times. Even when the prices dropped to the $1.3 figure witnessed at the start of the year, 24-hour trading volumes never declined below $70 million. 

The volume of trading exhibited by Tez shows how enthusiastic investors have been with this crypto. Coupled with its relatively high volatility, we can conclude that Tez has been the perfect asset for short-term trading, at least according to investors’ 2020 trading patterns. 

The Future of Tezos

We have seen that, due to its volatility and high trading volume, Tez performs impressively in the short term. For investors who seek to grow their investment in the long term, questions on Tez’s suitability still persist. 

Tezos had a promising start right from its introduction to the initial coin offering. As earlier mentioned, the crypto raised one of the highest amounts ever raised in a cryptocurrency ICO. The faith investors have placed on the crypto from the start indicates its potential and guarantees some level of support for its growth.

Tez has also shown tremendous resilience in the past. After the successful ICO, legal disputes delayed its launch for almost a year. Even so, when it finally launched in 2018, investors had not lost faith in the project – which can be proven by how fast it rallied to reach triple gains. Tezos’ market rank is another indicator of its resilience and aggressive growth. For a crypto that is only 2 years in the market, claiming a position among the top 20 cryptocurrencies is no mean feat.

These past indicators describe a crypto with a solid foundation, good reputation, and the community support needed for future growth.

Adoption in The Banking Sector

The network’s flexibility and scalability also imply that we will see new use cases regularly. In 2019, barely a year after Tezos was launched, BTG Pactual and Dalma Capital (both are reputable investment banks) announced that they will be using the Tezos blockchain for security token offerings (STO).

Tezos adoption in the banking sector is also likely to increase, particularly due to its security. Least Authority, an esteemed security auditing company, released a report affirming that ‘Tezos protects against chain reorganizations and selfish baking.’ Such approvals will go a long way in promoting the crypto’s adoption in the financial sector. 

Stability and Reliability

Tezos’ designers spent a lot of thought on the network’s stability. Unlike most crypto, Tezos has an advanced infrastructure that is not prone to hard forks. Users can vote on proposals to upgrade the protocol on the main blockchain. Through a process known as baking, users stake an amount of XTZ to participate in the voting process. Changes to the protocol become effective only after they have been backed by a super majority. This form of governance ensures the network is ‘built to last.’ As an investor, you will be protected from the uncertainty that comes with hard forks and the subsequent possibility of making a loss on your investment.

Is it Risky Investing in Tezos?

Cryptocurrencies are inherently risky investments. Tezos appears as a stable, secure, and well-governed blockchain. However, the currency faces the same volatility and speculation that all other cryptos face. No matter how lucrative Tezos might appear, the golden rule remains, never risk more than you can afford to lose.

Final Thoughts

Investing in Tezos can be an exciting experience – you can quickly gain or lose, and by high margins. The currency’s relatively high volatility makes it a particularly suitable asset for short term investment. In the long term, Tezos looks equally promising. It is secure, stable, and reliable. These characteristics position the crypto strategically for widespread adoption in the mainstream financial sector. The network’s immunity against hard forking is a guarantee of stability against hard fork uncertainties. While Tezos is a good investment, it is still risky due to the virtue of being a cryptocurrency. Therefore, it is best to exercise caution and avoid hype when making the decision to invest in Tezzie. 

Crypto Daily Topic Cryptocurrencies

How to Take Advantage of Ethereum 2.0

Ethereum, the decentralized blockchain that features smart contracts, will be getting a series of upgrades that will see improved scalability, security, and sustainability. This massive upgrade will create new opportunities for investors. Apart from allowing Ethereum users to earn passively from staking, smart investors can take advantage of price changes during the launch of Ethereum 2.0 and multiply their investments. 

In this article, we will look at what is Ethereum 2.0, what investment opportunities it creates, and how you can be part of this development.

What is Etherum 2.0 All About?

Also known as Eth2, Ethereum 2.0 is fundamentally a shift from the current proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) model. In the PoW model, the generation of new blocks relies on the computing power of each node on the network that is taking part in transaction validation. On the other hand, PoS relies on virtual miners (also called validators) and Ether deposits to achieve consensus. 

Besides changing the consensus mechanism, Eth2 also introduces shard chains – a mechanism that ‘splits’ the Ethereum blockchain and shares the processing task among different nodes. This approach increases the network’s processing capability by allowing concurrent processing of transactions – a shift from the traditional sequential processing. 

While the upgrade is squarely technical, its economic and financial implications will be far-reaching. 

How Will Eth 2.0 Affect Prices?

Whenever a major event happens on certain crypto, its prices are bound to change due to increased speculation. In the wake of the anticipated Eth2 launch, upward price movements were observed. The launch was set to happen on 1st December, and a week to this launch, ETH prices had gone as high as $600. While this rally might have been due to other factors, such as the general positive sentiment on cryptocurrencies, the surge observed just a week before the event can’t be coincidental. 

Speculation aside, Eth2 is bringing improved transaction speeds and lower costs – factors likely to increase demand for the crypto. Already, exchanges are reporting declined sell pressure, which indicates that investors are not eager to sell ETH at the moment. The speed and transaction cost improvements will also automatically cascade to tokens that run on the Ethereum blockchain. This will trigger even more demand for the crypto and, thus, better prices. 

Staking in Eth 2.0

The introduction of staking in Eth2 creates a new opportunity for investors to earn by validating transactions, and this is the latest investment opportunity we would like to discuss. 

Simply put, staking in Eth2 implies depositing 32 ETH to activate validator software – the tool you will be using to process transactions. As a validator, you will have the power (and duty) to process transactions and add new blocks to the blockchain, and earn rewards while at it.

Rewards are given to validators for pushing transaction batches into new blocks and validating other validators’ work. While there are bountiful rewards in staking, you might lose ETH if you are unavailable to perform validations or if you use your stake against Eth2 validation specifications. 

How to Stake in Eth 2.0

Staking involves sending 32 ETH to the following address: 


However, you will need to use the launchpad dedicated for this purpose. The address above is for verification purposes only. The process involves several distinct steps, summarized as follows:

  1. Review Eth2 staking agreement/ terms and conditions
    1. Sign up on the launchpad. This will involve depositing the 32 ETH.
    2. Agree that it is your responsibility to keep your validator online.
    3. Agree that you are liable to slashing (incurring a large penalty) if you act against validation specifications.
    4. Agree that you understand that your mnemonic (or seed) is the only way to access your funds and that you will keep it safe.
    5. Agree to safeguard your key stores, which will hold your keys, and provide the public keys to the launchpad site to activate your validator.
    6. Agree that you cannot transfer your staked ETH until Phase 1 and that you cannot withdraw until Phase 2.
    7. Agree that once you exit, you cannot rejoin as staking is a long-term commitment. (The completion of each phase depends on reaching a certain amount of staked ETH. Thus, withdrawals will keep extending timelines for this smart contract).
    8. Accept early adoption risks, i.e., software and design flaws that may result in the loss of your ETH.
    9. Agree that you are technically capable of configuring a validator.
  2. Select an Eth1 client that will run parallel to your Eth2 client. This is necessary to process deposit transactions coming from the Eth1 chain.
  3. Select an Eth2 client and set up a node. You can choose between Prysm, Nimbus, Lighthouse, and Teku. Nimbus is one of the most versatile as it can run even on older smartphones.
  4. Select the number of validators you would like to run and the operating system you will use. Remember, to operate each validator, you will need 64 ETH.
  5. Upload the validator which you downloaded/ built from the previous step.
  6. Finally, connect your wallet.

While staking in Eth2 is quite technical, especially for the average user, a comprehensive step-by-step guide is provided on the Ethereum launchpad website. It is also worth acknowledging the thoroughness with which the documentation was put together by the Eth2 team to guide potential validators. If you use this guide, you are unlikely to get stuck simply due to technical difficulty. 

Is Eth 2.0 Staking a Good Idea?

Staking in Eth2 is a double-edged sword – it comes with both benefits and risks. When you commit your ETH to the staking contract, you are almost guaranteed returns just from staking. However, returns are highly variable. In fact, it is impossible to tell how much you can earn by staking a fixed amount of ETH until you actually receive the reward. Even so, if you stake and consistently participate in validation, you will get rewarded. 

Secondly, staking means locking your ETH to the network for some time, without the possibility of withdrawing it at least until Phase 1.5. This is akin to depositing with a fixed account, whose interest can be compared to the growth of ETH in the near future. 

While staking is a good way to earn from Eth2, you might want to consider the following risks:

  • Staking is a one-way deposit. ETH you send to the contract address cannot be withdrawn until an unknown future date (this is until Phase 1.5 of the upgrade is reached).
  • Profits you earn from staking also remain staked until this unknown future date.
  • Validation is a responsibility that all stakers must undertake. By being offline, you will lose as much as you would have earned if you were available for validation.

Final Thoughts

The coming of Eth2 brings with it exciting investment opportunities. Other than the traditional trading and HODLing, Eth2 allows you to commit some funds to the network and join other validators and earn exclusive rewards from it. Risks, including early-adoption software bugs and slashing due to being offline, exist. However, all considered, staking is a worthy venture that ETH investors should consider. 

Crypto Daily Topic

What is coin burning all about?

The crypto adoption juggernaut rolls full steam ahead. You need only look at the increasing number of outlets accepting crypto payments to prove this. Even governments that once approached them with cynicism have caught on to the act. The big migration to CBDCs is now a matter of time.

Whereas the growing acceptance is positive, it comes with its misgivings. Although the proliferation of coins and tokens expands choices, it raises concern about sustaining cryptos’ value within the cryptosphere.

Cryptos are good at mitigating inflation, but they’re not immune to it. Crypto projects have had to devise the means of controlling this. As such, coin burns have been the tool of choice. But what are coin burns? How does one execute them? Importantly what is their value? Stick around as we go deep into the subject. 

What Is Coin Burning?

Coin burning is the process of removing a set volume of cryptos from circulation.  In doing so, developers and miners reduce their total supply. 

Eater Addresses/ Blackholes

Coin burning entails sending cryptos to public addresses with unobtainable private keys. Also known as eater addresses or blackholes, these addresses render the coins useless. Nevertheless, they allow for their public viewing and peer verification on the blockchain.

Coin Burning Varies With The Project

Depending on the frequency of the coin burning process, we can classify it into two broad categories:

  • One time burns – are one-off coin burns popularly embraced by  ICO projects to clean the market of unsold coins.
  • Periodic Burns- these are undertaken repeatedly at either fixed or varying intervals; Binance holds quarterly coin burns while Tether does so per withdrawal or collection

What are The Approaches to Coin Burning?

There are two major approaches to coin burning. These are:

  • Mechanisms relating to the token’s blockchain protocol
  • Mechanisms driven by economic sense

Protocol Related Mechanisms

In this category, we have coin burning mechanisms embedded in the project’s core protocol layer. We may divide these into two main groups.

  • Proof of Burn Mechanisms
  • Anti Spam mechanisms
i) Proof of Burn Mechanisms

These use the  Proof of Burn (PoB) consensus that requires miners to prove that they’ve burnt some of their coins. PoB has several variants:

  • Burning Native Coins for Mining Rights- miners must burn some of their coins to acquire block mining rights;  an example is Slimcoin.
  • Burning Bitcoins to Create New Native Coins- projects like  Counterparty (XCP) use PoB that burns BTC in exchange for a similar value of coins in the native currency, XCP
  • Burn-And-Mint Equilibrium: an advanced version of PoB used by  Factom (FCT) that burns native tokens in return for Entry Credits for storing data on its blockchain
ii) Anti Spamming Mechanisms

Introducing a cost to transactions prevents spamming and DDOS attacks that compromise the network. Projects like  Ripple (XRP) and Request Network (REQ) integrate a burning mechanism for every transaction on their network. Though indirectly, their Users ‘incur’ the cost of trading on them. The ecosystem gains in value resulting from a reduced supply of native coins. 

Mechanisms Driven By Economic Sense

These are mechanisms informed by a project’s economic considerations. They may be one-offs or periodic.

i) Mopping up of The Unsold ICO Tokens

At times ICOs fail to meet their hardcaps. Consequently, remain with unsold tokens. The projects may decide to destroy these to maintain their credibility.

ii) Paying out Dividends to the Coin Holders

Profitable projects may use their profits in buying back their native coins from the public. They then destroy the repurchased coins, thus paying them some dividend, which increases the value to coin holders.

What are the Steps Followed in a Coin Burning Event?

The coin burning event follows a sequence of four steps. Here’s its breakdown:

  • Institution of the burn function- the coin holder starts by calling the burn function, indicating the number of coins they intend to burn.
  • Verification of the coins  for burning- The contract proceeds to determine the ownership and validity of the selected coins, considers positive numbers only
  • Abortion of the burn function- The process aborts if the instigator has fewer coins or uses a negative value or zero.
  • Execution of the Burn function- the smart contract withdraws  the sums from the instigator’s wallet, permanently cutting them from circulation 

Why do Crypto Project’s Institute Coin Burns?

You’d think that coin burning is beneficial. Wouldn’t you? After all, you have Key players like Binance and Tether performing them. What then are its benefits

i) Appreciation in the Crypto’s Value

Cryptos are decentralized. In essence, market forces determine their prices. Coin burning depletes the sum of coins serving the market. As a result, their value rises to attain equilibrium. The attainment of market equilibrium is essential in stabilizing the price(value) of the crypto.

ii) Ensuring Network Stability

As stated elsewhere in this article, coin burning is key to eliminating Spam and DDOS. Accordingly, the network becomes stable.

iii) To Mop Up The Unsold Tokens From an ICO or Token sale

Crypto projects initiate ICOs to get public buy-in. Towards these, they set aside a certain percentage of the coins hoping that the investors will acquire the whole lot. However, things don’t always go that way, resulting in a remnant of those coins.

iv) Winning Investors’ Trust

The token insurer burns the coins remaining unsold from the ICO. They do this to ensure a level playing field for all investors. Were the issuer to keep the unsold coins, they’d have a massive advantage over other investors. Coin burning helps win the trust of other investors and incentivizes their stay within the project. 

A case in point is the Neblio cryptocurrency. Its team burned 122 million tokens that remained from their ICO. It sent them to an unspendable NEBL address.

v) Correcting Errors in Coin Issuance

At times projects realize errors in the creation of their tokens or coins. As such, they turn to coin burns to remedy this situation. A case in mind is Tether. The company realized that it had erroneously produced $ 5 Billion USDT. It resorted to a coin burn to maintain its 1:1 peg to the USD. Allowing the extra coins to stand would have destabilized the ratio.

vi) Guaranteeing The Developers’ Commitment to the Project

Coin burning signals the Developers’ commitment to the project. Look at it this way: the coin burn reduces their supply. At the same time, it increases the value of the coin or token in question. Burning is indicative of the developers’ desire to see the project grow in value and network function.

vii) Reduction of The Competition Between Miners

The Proof of Burn (PoW)  consensus is a popular offshoot of coin burning. Through it, a user destroys their coins to gain mining rights.

Managing Mining

PoB matches the number of blocks a miner can verify to the volume of coins they burn. This way, one’s mining ability increases with increased burning. Thus it reduces the number of miners and competition for resources between them.

Leveling the Playing Field Through Decay Rates

Since PoB favors the large-scale miner, they employ decay rates. This feature reduces one’s mining capacity with every verification. For them to remain profitable, it compels them to invest in more tokens to burn.

Final Thoughts

Although touted as the fix against inflation, cryptos aren’t immune to the same. Consequently, projects have had to find ways of guarding against it. Their default method has been the institution of coin burning: the deliberate removal of a given amount of coins from the market. It may be a one-off event or a periodic undertaking. Additionally, it could be a procedure hardwired into the project’s core protocol layer or driven by economic consideration. Whatever the cause, coin burning is an essential undertaking that, among other positives, infuses stability and confidence in any crypto project.

Crypto Daily Topic Crypto Videos

Pension Funds Are Investing In Bitcoin!

“Pension Funds are Investing in Bitcoin” – Grayscale


Grayscale’s newly-appointed CEO, Michael Sonnenshein, told Bloomberg that pension funds and endowments are actively investing in the Grayscale family of funds. Sonnenshein’s interview with Bloomberg came on Jan 7.

He further explained the statement: “We have started to see participation not just from the hedge funds, which we’ve seen participation from for a long time now, but now it’s recently coming from other institutions, pensions, and endowments. The sizes of allocations that they are making are also growing rapidly.”

Grayscale has been at the forefront of the recent Bitcoin buying spree, and its holdings now account for roughly 3% of the circulating Bitcoin. The fund manager continues to increase its position by buying even more cryptocurrencies as more institutional investors seek exposure to Bitcoin and other digital assets. 

Grayscale’s total assets under management, or AUM for short, have eclipsed $27 billion across ten different investment products. The Grayscale Bitcoin Trust remains its most popular product by far, with over $23 billion in AUM. Its Ethereum trust is the second most popular product, and it is currently valued at around $3.7 billion, while its Digital Large Cap Fund holds somewhere in the ballpark of $340 million.

Pension funds are starting to follow a hoard of institutional buyers that started to enter the Bitcoin and crypto market in 2020. A survey conducted by Fidelity Investments in late 2020 found that 36% of financial institutions across both the United States and Europe said they own cryptocurrencies or derivatives. Over 25% of the respondents reported holding Bitcoin, while 11% said they own Ether.

According to Grayscale Investments, the institutional interest for cryptocurrency and Bitcoin is intensifying at an alarming rate, with pension funds and endowments being the most recent entrants into the space.

The company’s aggressive Bitcoin buying is likely contributing to the digital currency’s rapid price increase. With more Bitcoin taken out of circulation and miners not being able to produce as much Bitcoin as it is requested, the already scarce asset is becoming even more difficult to get at current prices. Sonnenshein stated:

“This is a verifiable scarce asset, so when there are mechanisms that are removing Bitcoin from circulation, that’s inherently making it an even more scarce asset.”

Crypto Daily Topic Cryptocurrencies

How Does Ripple (XRP) Fare against the Rising Stablecoins?

Ripple Labs was poised to overtake the bitcoin network because of its fast speeds and cost-effective transaction framework. Ripple’s XRP promised to convert crypto assets from mere investment options to viable, widespread means of digitized, global payments.

Another form of cryptocurrencies emerged as designers grew wary of regulatory gaps and volatility in crypto markets. Stablecoins are digital currencies whose value is pegged on national fiat currencies. They are designed to diminish the volatility of crypto assets.

Some stablecoins have their value pegged on other cryptocurrencies. Other coins are backed by asset-buying algorithms. Therefore, stablecoins can be backed by gold, a basket of fiat currencies, other crypto assets, and stable investment commodities.

The Ripple payment protocol has been in the markets since 2012, and we’ve had enough time to observe the rise and fall of the XRP currency. Ripple Labs enjoyed phenomenal, initial success in the markets because of its low-cost, global transactions that don’t allow chargebacks.

So, what is Ripple’s market position in contrast to stablecoins? Empower yourself by understanding the differences between traditional cryptocurrencies and stablecoins. How else will you make insightful investment decisions with long-term benefits?

Understanding the Rise of Stablecoins

The year 2020 saw a tremendous rise in the overall market cap of stablecoins, from $5.3 billion to $13 billion. The Coronavirus pandemic caused widespread volatility of assets, and investors moved to stablecoins in search of stability.

Investors prefer stablecoins because these currencies exist in environments that are free from speculation. Stablecoins maintain a value close to real-world assets, and you can predict your financial future with these assets.

With volatility out of the picture, stablecoins present the best investment options for folks pursuing decentralized finance. These digital currencies apply smart contracts, making them viable, more convenient replacements for banks and other third parties. You can save time and money by cutting out intermediaries.

Stablecoin providers are innovative, and they use algorithms to buy and sell assets for stability. The process is known as collateralization.

Bitcoin is an excellent example of cryptocurrency value fluctuations. In 2017, one coin was worth $5,950 in November, and the value skyrocketed to $19,700 just a month later. Bitcoins can fluctuate in over 10% of value daily.

The volatility of traditional crypto assets made them more viable for speculative investment and less suitable for daily transactions. Who wants to buy a bike with bitcoins today, only for the same amount of bitcoins worth a truck tomorrow?

Stablecoins are better suited for daily transactions than traditional crypto assets purely because of reduced volatility. These hybrid crypto assets did well in 2020 after addressing value fluctuations because of their transactional convenience.

Advantages of Stablecoins over Traditional Cryptocurrencies

  • Stablecoins utilize liquidity pools, diminishing volatility, and offering predictable purchasing power.
  • These currencies offer exceptional convenience in remitting secure, fast, global payments. The payment protocols integrate seamlessly with blockchain networks.
  • Stablecoins offer redemption guarantees at face value. You can recover the exact amount of fiat money you spent acquiring individual stablecoins.

Why Was XRP Overtaking the Crypto Markets?

The creators of Ripple wanted to develop a payment protocol that:

  • Processes transactions fast
  • Offers a global reach
  • Levies negligible transaction fees
  • Is secure and irreversible

This protocol applies a digitally distributed ledger, and the network reconciles the ledger via independent validating servers. Since the network of randomized validators is vast, the Ripple protocol can validate numerous transactions in real-time.

You can receive payment notifications a few seconds after approving transactions.

Just a year after launching, Ripple’s payment protocol attracted banks, and the company has so far integrated the protocol with the networks of over 100 banks. The blockchain tech was impressive enough to get Ripple in MIT’s list of the smartest companies.

Ripple’s success was continually growing, and XRP became the most competitive currency after Bitcoin. It had amassed a market cap of $73 billion by the end of 2017.

SEC’s All-Out War on Ripple and Other Traditional Cryptocurrency Firms

Coinbase announced it would suspend the trading of Ripple’s XRP, and other major blockchain exchanges followed suit. This was a significant development that caused XRP’s value to drop drastically.

Major cryptocurrency exchanges are dropping XRP because of the legal conflict Ripple has with the SEC. Most of the exchanges are trying to go public, and Ripple’s issues with the SEC could cause rising expenses for firms like Coinbase.

The SEC charged Ripple for offering securities for over seven years without due registration. This financial regulator categorized XRP as security. The lawsuit caused the price of XRP to fall by over 50%.

Ripple’s leadership is also facing charges for failing to disclose crucial information that XRP buyers needed to assess their risks. The current and former Ripple CEOs are accused of distributing XRPs for non-cash consideration without duly registering XRP as a security.

Ripple is determined to fight the lawsuit, and it does not consider the SEC to have any regulatory jurisdiction over XRP. According to the network’s leadership, XRP is a currency and not a security. Still, the SEC insists Ripple must comply with federal laws meant to protect investors and consumers.

Exchanges risk court charges and law enforcement raids if they continue trading XRPs without registering as securities exchanges. Since the registration process is costly and time-consuming, crypto-asset exchanges would instead let the Sec and Ripple Labs face off in court.

But Ripple Labs is not the only subject of the SEC’s all-out war on cryptocurrencies. This federal agency also fined EtherDelta $400,000 for operating unregistered securities exchanges. The circumstances would have been worse, and EtherDelta settled with the SEC to avoid harsh penalties.

Airfox and Paragon Coin were not so lucky; they were charged for selling digital tokens in ICOs. The Sec found grounds to penalize them for violating registration requirements for ICO securities.

Airfox had to return $15 million to investors and register its tokens as securities. Paragon Coin had to return $12 million to investors, register its tokens as securities, and report to the SEC periodically.

Parting Shot

Did you think the regulatory force would be so impactful? Do you remember how effectively legislative committees were in silencing Facebook’s Libra? The legal environment is hostile for non-compliant blockchains. 

Only Bitcoin seems resistant to government censorship, but it’s also the only one with an anonymous founding creator. We can’t say the same about Ripple’s XRP, and stablecoins will also be subject to government scrutiny. It’s only a matter of time.

However, blockchain technologies are secure, transparent, convenient, and cost-effective. Digital currencies offer irresistible benefits for users and investors. These fintech technologies will evolve to find legal compliance and global acceptance.

In the meanwhile, share your predictions on the reality of XRP’s quagmire in the comments section. Share this article with your friends who fancy cutting-edge technologies that make life easier.

Crypto Daily Topic Cryptocurrencies

The Best  Crypto Trading Bots Going into 2021

The increased acceptance of Cryptocurrencies is a boon for the financial sector. It promises to improve the inefficiencies of the mainstream financial systems. Again, their adoption expands access to services. Furthermore, it creates a unique investment opportunity. 

Their proliferation, however, is a nightmare to any would-be investor. According to CoinMarketCap, the total number of cryptos stood at 6,955 as of September 2020. Coupled with the fact that the crypto market never sleeps, this makes investments in the space daunting. We need solutions to deal with these challenges better. Here’s where trading bots come in.

Crypto trading bots are software apps that automate trade in cryptos. They scour the market for the optimal buy and sell values aiming to earn the user a profit. The volatility characterizing the cryptos market makes them all the more important. In this article, we look at them, factors to consider when selecting one, and finally, the outstanding bots going into 2021.

The case for Crypto Trading Bots

Crypto bots are essential in organizing one’s trades. Currently, the market is experiencing increased usage. Several factors explain this shift, and here we present the key ones.

i) Bots Eliminate the Human Element in Transactions

Left unchecked, emotions cloud the trader’s judgment. High-risk investments like cryptos require objectivity. Bots make transaction decisions based on rational analysis and interpretation of the market. This way, they eliminate impulsive and speculative trading that could imperil one’s investments

ii) Theirs is A Round The Clock Operation

The cryptocurrency space never sleeps. Again it is volatile. A momentary lapse and one could miss out on opportunities. Alternatively, they could incur losses. Here’s where trading bots come in handy. Their actions are automated. As such, they capture every shift in the market as it happens. This way, they save the trader the need to stay awake to track the market physically. Once configured, they automate transactions even when the trade is unavailable.

iii) They are Better at Multitasking

The crypto market is a maze. There are millions of transactions taking place in any instance. Physically tracking these is demanding even to the seasoned trader. Not so for the bots. They simultaneously track changes across multiple cryptos and exchanges. Thus they’re better at picking the best trades than us humans.

iv) Bots Streamline Transactions

For one to trade profitably, speed is essential. The market could quickly gain as it could fall. Unlike us, Bots execute transactions in a flash. Thus they enable timely settlements. Their use could make the difference between profit and loss.

Which Factors do You Consider When Selecting a Trading Bot?

Bots flood the crypto market. Each of these claims to be the real deal. Separating the quality product from the rest could be challenging. The following pointers will help you ease that decision:

  • Reliability- quality bots guarantee round the clock function.
  • Security- a good bot is robust and able to withstand attacks.
  • User experience- it should be easy to understand and use.
  • Affordability- a good bot offers efficiency at a fair rate.
  • Profitability- Quality bots enable users to achieve consistent profits.

Which are The Best Crypto Trading Bots Going into 2021?

Each crypto trading bot is unique. Moreover, no single bot is perfect. Selecting one boils down to individual preferences and how they fit into one’s trading strategy. Here are our best five picks moving forward. It is a random list, not an indicator of some particular ranking.

1. CryptoHopper

It is easy to use a semi-automated bot seeking to simplify crypto trading. It fashions itself as a tool that makes crypto traders maximize profits while reducing losses. Its key features include:

Social Trading

Through telegram trading, experienced analysts ( signalers) share insight on rising coins with other traders. Users may subscribe directly to these signalers. Moreover, they may automatically respond with a buy or sell order when it comes in.

It’s Cloud-Based

The service is entirely cloud-based. Therefore one can trade 24/7. One can log in anytime from any device.

Enables Exchange and Market Arbitrage

The arbitrage tool enables the user to benefit from the price differences between exchanges or crypto pairs. On enabling the bot, it searches for arbitrage opportunities. Besides, you don’t need to withdraw your funds from one exchange for another.


Through the market making bot, one can easily make markets and trade on the spread.

Strategy Designer

The strategy designer helps a user to develop a strategy enabling them to get the best trading signals. One can harness many indicators and candle patterns, including RSI, EMA, Parabolic Sar, CCI, Hammer, Hanged Man, and many more. Your Hopper will scan the markets 24/7 searching for opportunities for you. 

  • Backtesting/Paper Trading
  • Mirror Trading
  • Trailing Stop Tool

2. 3Commas

Incepted in 2017, 3commas is a popular crypto trading platform offering bot development functions. Its easy usage makes it ideal for users of all levels of technical ability. Its key features include:


This feature allows trading across several exchanges from a single window. Smart trade allows you the following functionalities:

  • Trailing order- enables you to adjust Take Profit and Stop Loss parameters automatically
  • Smart Cover- allows one to sell and buy back their coins
  • Short orders

Wide Exchange Integration

3commas supports up to 13 different exchanges. This makes it convenient to trade over multiple platforms.

Portfolio Management

Through this feature, one tracks their investment. The user may:

  • Create their coin portfolio(s)
  • View portfolios of other 3commas users
  • Adopt other users’ portfolios to their needs
  • Balance their coin ratios

TradingView Signals

The TradingView signal finder allows instant tracking of the market. The signal finder issues four order types, namely:

  • Buy
  • Strong buy
  • Sell
  • Strong sell


Users can simulate trading before executing actual trades. This way, they get to test their trading strategies and get a feel of the platform’s features.

3. Shrimpy

Shrimpy describes itself as the social trading platform for cryptocurrencies. It takes pride in simplifying portfolio management. Among its key features are:

Portfolio Management

Shrimpy enables you to connect all of your crypto exchanges and automate transactions. It helps you build a portfolio strategy. Also, through it, one can monitor the market. Its management tools automate portfolio allocations and rebalancing.

Social Trading

The platform has bet big on its community. Users have a forum for exchanging ideas and strategies. Again they get to educate each other on matters crypto. As a result, they increase their mastery of the sector.

Copy Trading

Shrimpy allows one to follow other investors on the platform. This way, they can model their investments on the leaders’. Copying the strategies of successful traders helps improve one’s profitability.

Robust Security

The platform boasts of robust security features. Each uses FIPS 140-2 security modules to encrypt all the API keys. Additionally, the platform only reads data for trading purposes. Therefore it’s unable to withdraw one’s funds. It also supports two-factor authentication.

Social Leader Reward

Through the social trading platform, Shrimpy creates leaderboards. Users earn $4 for every new follower they gain every month.

Shrimpy Universal Exchange API

Shrimpy offers its users an industry-leading API that facilitates crypto transactions, the instantaneous collection of data, and the management of exchanges.

4. Gunbot

Gunbot is an advanced bot allowing easy transaction of cryptos. After the user identifies a trading strategy, the bot automates it. Its popularity draws from the following features:

Multi-Platform Support

The software is compatible with different platforms. It runs on Windows, macOS, Linux, and ARM devices.

Multi Exchange Support

Gunbot supports the most popular exchanges. Additionally, the platform continues to support new exchanges. Further, it supports lesser-known spot exchanges through the CCXT library.

Strategy Presets for Beginners

For the uninitiated, trading can prove arduous. Gunbot eases things for the newbies. Its strategy presets allow them to trade easily as they learn the ropes. 

Wide Variety Of Trading Options

Gunbot users can buy and sell in 14 different ways. You can use all these methods within a customized strategy. Also, one may employ a set of confirming indicators to specify the trading conditions they want to allow. Including a stop-limit reduces one’s risk exposure.

Dollar-Cost Averaging(DCA)

Gunbot uses the double up method to average down assets automatically. The morbid allows one to reach a lower average price per unit as prices decline. Thus it enables exit at the lowest profitable price. Through DCA, one can set up the following options:

  • Trigger for DCA orders
  • The minimum price difference between buy orders while in DCA
  • Frequency of placing DCA orders
  • The ratio of volume purchased via DCA orders to the amount of quote units already owned.

Reversal Trading

Gunbot can automatically accumulate quote currency when prices go down. It does so without investing more than the initial buy order. This way, it helps bring down the break-even point.

Telegram Integration

Through telegram, one gets to interact with their bot. This feature enables:

  • Profit tracking- get profit/loss statistics for every trading pair.
  • Modify settings- change settings on the go, such as enabling or disabling pairs.
  • Get notifications on trades.
  • Monitor trades.

Final Thoughts

The crypto space is disruptive. Our continuing acceptance of cryptos is reshaping the financial landscape. Thanks to them, there’s the possibility of increasing financial access. Additionally, we can look forward to enhanced efficiencies and the opening up of investment opportunities. 

 As crypto markets are volatile and complex to navigate, we require better analyzing and strategizing tools. Crypto trading bots make this possible. They take the chore out of transactions while seeking profit for the investor. 

 In a market bursting with them, one should exercise caution in their choice. This article outlines the key factors to consider when picking one over the other(s). It goes on to identify the best bots going into 2021. Though not exhaustive, this guide is a good starting point in your crypto bot choosing journey.

Blockchain and DLT Crypto Daily Topic

5 Portals That Rate And Rank DeFi 

There’s never a dull moment in the Defi sector. Continuous innovation in the space affords us products and solutions that ease our transactions. Additionally, the thriving Defi sector provides alternative investment avenues. Further, the investments attract better returns compared to those from conventional finance. It isn’t a wonder that investors in their droves keep boarding the Defi juggernaut.

In a sense, the ballooning of Defi is both a blessing and curse, A blessing in that it expands our choices and gives us greater say over our funds. On the other hand, many competing products could cause us headaches in product choices. The fact that genuine and fake projects dot Defi’s landscape further exacerbates this dilemma.

Luckily though, we’ve portals whose mission is to take the difficulty out of Defi investments. These scour the Defi sector, analyzing projects and trends for our consumption. In them, we have crucial allies for navigating the Defi maze. This article examines five portals that rate and rank Defi to our gain. We shall proceed to explore the features that make them a must-have tool in our investment journey.

1. DeFi Pulse

DeFi Pulse site enables you to find analysis and rankings of Defi protocols. Its salient features include:

Total Value Locked

This metric shows the amount of funds locked up in various DeFi contracts. A high TVL is indicative of a thriving economy. Defi Pulse uses a graph to capture the daily TVL progression.

Market dominance

This standard ranks projects according to their liquidity levels. Projects with higher liquidity are a stable and attractive investment option.

The Market Leader Share Metric

The Market leader share metric gives you a glimpse of the Defi categories available on Defi Pulse’s site. Major types include Lending, DEX’s, Derivatives, Payments, and Assets.

DeFi Pulse Farmer

The DeFi Pulse Farmer is the site’s newsletter. It covers the latest news and opportunities in the Defi space.

DeFi Lending

The Defi lending feature shows the interest that these protocols generate per year. Through this ranking, you can determine the most profitable investments. The platform also has a calculator that shows you how much interest you’d draw per month by locking a given amount of an asset.

DeFi Pulse Token List

The Token list is a directory of the legitimate tokens trading on Ethereum.  It serves to reassure users that they are dealing with a genuine project.

2. CoinMarketCap DeFi page

CoinMarketCap (CMC) has distinguished itself to be a trustworthy platform. Its Defi page lists tokens simply and conveniently, allowing for faster searches. Its other standout features are:

Cryptoasset Ranking

Here you find all the assets that CMC lists. You get to see the asset’s market cap, price changes within a day or week, its volume, and circulating supply.

Coin Details Pages

These provide in-depth information regarding a coin. The “market pairs” tab features prominently on these pages. Market pairs have unique confidence indicators that aid you in picking an exchange to trade. This confidence score mirrors the exchange’s liquidity.


Here you get to compare how the different exchanges fare. The exchanges fall into different categories, including spot exchanges, derivatives exchanges, and decentralized exchanges.

CMC’s Watchlist

The watchlist feature allows you to mark your favorite cryptos. In this way, you can easily track their performance.


Keep abreast of the happenings in the crypto and blockchain space with this tool. The embedded Signals feature sends you news directly from a project or a given crypto protocol.

3. Etherscan

Etherscan is an Ethereum based platform providing analyses of the Defi sector. It debuted in 2015 and one of the longest-running independent projects built on the network. Its mission is to provide fair access to blockchain data. Some of its key features are:

DeFi Leaderboard

Through Etherscan’s leaderboard feature, you get to find up to date analytics and rankings of DeFi protocols. The rankings take into account the total value locked into the smart contracts. From the leaderboard, one can skim the following information:

  • The project’s rank
  • The project’s name
  • Its category
  • TVL in USD
  • Price changes in a day
  • Price changes over a week
  • The project’s market capitalization
  • The market cap to TVL ratio

Token Tracker

Etherscan tracks and ranks two kinds of tokens. First is the ERC 20 token, and secondly, the ERC 721 token, also known as the Non-Fungible Token.

ERC 20 token Tracker

In ranking the ERC 20 token, Etherscan identifies the project by name, states its trading price, and changes in 24 hours. Additionally, it indicates the token volume within a day, the token’s market cap, and its total number of holders.

Non-fungible Tokens Tracker

This tracker ranks the top ERC 721 tokens. It identifies the project and its volume first within a day and finally in a week.

Yield Farms Tracker

Yield farming is an essential component of Defi. Accordingly, Etherscan has provided a rank for the top yield farming ventures. You’ll find the project’s name, its start date, addresses, trading prices, and market cap in this ranking.

4. Loanscan

Loanscan is your go-to platform in matters of Defi lending. It gives you access to financial information and analysis for credit issued on the Ethereum blockchain. The platform supports loans from Compound, dYdX, Dharma, and Maker DAO protocols. However, it plans to introduce additional protocols and blockchains in the future. Minimalist in nature, it has two significant features:

Earn Yield

Here you get to know the amount of interest you’ll earn investing in a given platform. Besides showing the earning in terms of USD, Loanscan also compares the yield across cryptos. 


This feature enables you to determine the cheapest platforms to seek credit. Again it lists the platforms and their lending rates for different cryptos. 

5. DeFiprime

DefiPrime is a feature-rich portal offering comprehensive information on different Defi projects. On this site, you’ll find news and blog articles relating to Defi. Additionally, you can conveniently search for projects under several categories. Some of the main categories include  Alternative savings, Daos, Payments, and Staking. The site eases the process of finding projects as it arranges them in niches. Thus, it saves you time.

Final Thoughts

The growth of Defi has placed us in a quandary. On the one hand, we celebrate the convenience of transactions, expansion of financial options, and notably, the financial freedom Defi affords us. That said, their proliferation introduces challenges in determining which products to choose. As the sector has its fair share of legit and fraudulent projects, this difficulty gains in significance. All is not lost, though. Some portals undertake analysis of the Defi market to keep us in the know. Using these portals takes the guesswork out of investing, guaranteeing us fruitful experiences in the space. 

Crypto Daily Topic Forex Daily Topic Forex Videos

Forex Trading Algorithms Part 7 Elements Of Computer Languages For EA Design!

Trading Algorithms VII – Liberal sequences and exact sequences

Translating ideas into a trading algorithm is not always easy. When examining a particular trade idea, we could find two cases: 

  • the signal can be described precisely in a consecutive sequence of trading facts, or 
  • Several conditions with variable steps among each condition need to be spotted.

The first class is easier to program. To this class belong any kind of crossovers: 

  • price to MA: 

  • MA to MA :

Similar conditions can be created with indicator crossovers and level breakouts.


Trading Signals Using Pivots

But what if the idea is more complex?. Let’s consider we want to catch pivot points in the direction of the trend. Let’s say we want to open a buy trade in the second pivot reversal. Let’s follow Pruitt’s example:

Buy on the second pivot pullback if

1.- The second pivot high is higher than the first pivot

2.- The pullback is larger than 2%

3.- The sequence takes less than 30 bars


The Flag Model

Since these conditions happen with variable price-action sequences programming, this kind of entry is much more difficult if we employ just If-then-else statements. The employment of flags to signal that a specific condition was met helps in the logic but is not the best solution.

As we see, the flag model is awkward and not too flexible. Also, this method is prone to errors.


The Finite State Machine

The second method to this kind of problem is the Finite State Machine (FSM). Basically, we want to detect certain states following others, defining a state when the needed condition is met. An FSM is a machine with finite states. The machine moves from state zero or START through several states until a final one, which defines the ACCEPT state. 

We can imagine a state machine as a combination lock. We need to supply the lock with a combination of numbers until its final digit, which triggers its opening.

The first step is to create the states needed. Next, we create the conditions for the change from one state to other states. Once satisfied with the diagram, we can easily write the pseudo-code, or, even, the actual code directly.

As we can see here, the code is precisely subdivided into states, each state with the precise instructions to move to the next state or back to the start state. We can see also that this algorithm is executed from top to bottom on each new bar. We hope that this example will help you better understand how an entry algorithm can be created.

Stay tuned for more interesting videos on trading algos!

Crypto Daily Topic Cryptocurrencies

What is IDO? Is it the End of ICO and IEOs?

Cryptocurrency and blockchain aim to reduce dependence on regulated financial models and centralized platforms. Unfortunately, the majority of the exchanges are still running as centralized and in fully controlled models. 

IDO or the Initial DEX Offering has emerged as a solution to ensure independence and autonomy. The interest in the decentralized token listing is growing, indicating a desire to move towards a no-restriction and higher efficiency model, and that is where IDO comes in.

Initial DEX Offering is only a few months old, and it has already become a preferred method to raise capital in DeFi and distribute tokens. Admittedly, the IDO community is inexperienced, but still, it is making great strides.

Shortcomings of the Initial Coin Offering

2017 was nothing short of a fantastic year for ICO, and anyone with some white paper on digital currency could raise funds. But as it turned out, most of them were scams, and billions of dollars were lost, highlighting ICOs as scammy. 

ICO has its place in the history books as it represents the first method that investors raised funds in the crypto realm, but its weaknesses are quite glaring, and therefore the need to move past it. 

Essentially, investors in crypto startups did not have the necessary knowledge background to assess the project’s viability. Some of them invested in rumblings on white papers, and others in ICOs with staggering high valuations. But that is not all.

Initial coin offering had a loophole, and most scammers exploited it gleefully. After ICO fundraising, the project teams were free to collect the funds in one lump sum. Even if the project teams were truly committed to the project, receiving such a sum in one fell swoop was distracting, and the motivation to continue with the project would diminish significantly. 

The other shortcoming was the absence of a decent governance mechanism to safeguard the investors’ funds. People who put up their money were left stressing about their investments’ fate, continually sifting through everywhere for news, and there was also the issue of gas wars.

The most common way to contribute or participate in ICOs was through sending money from personal wallets. This created a “gas limit,” which is the maximum amount of funds you are willing to part with as transaction fees to move up the transaction validation system’s queue. 

Gas wars occurred when particular investors put up transaction fees too high to push rivals down the queue. Over time, the initially overjoyed investors for winning the gas war would then begin to sulk as regulators and other bodies started to examine some of the fundraisings’ legitimacy. For example, the SEC is beginning the process of filing cases against some of the concluded ICOs. 

Considering all these factors, legitimate projects can fail to get sufficient funding through ICOs. This is mostly because of the diminishing reputation and the need for a better alternative. 

What is IDO?

The IDO fundraising method has striking similarities to ICO and IEO. However, it is decentralized and based on DeFi, a robust, innovative, and scalable open finance technology.

An excellent example of Initial DEX Offerings is the Raven Protocol-built IDO, the first of its kind, hosted on Binance DEX. The others in operation include UMA (a Synthetic asset) and BZX, a margin trading and lending protocol. Many other platforms already have IDO dashboards and are looking to throw their hat into the ring.

Not too long ago, UMA, BZRX, and COMP used Uniswap, popular for its fair and smooth way to deliver tokens to the market. This method of distribution has become standard and is open to public access. IDO empowers users from different countries to participate in the trade. That means people from all over the globe can purchase tokens from Raven Protocol and other token vendors. 

The Difference between IDO, IEO, and ICO

The main difference between IDO and IEO is the fundraising platform hosting them. On the part of the ICO, the operations and transactions are managed on an inner platform. 

On the other hand, the centralized exchange IEO (initial exchange offerings) hosts “ICO” in-house and is, therefore, the ICO’s mutated version. Unlike ICO, IEOs offer an additional layer of intermediation, only allowing legitimate projects. Unfortunately, a large number of IEO’s are selling similar tokens to ICO, which may complicate the whole issue.

No doubt, the regulatory landscape governing crypto exchanges such as EIO is complicated, but that does not shield it in any way. The U.S. regulator has made it clear that ICO token sales are the same as securities issuances, posing a significant risk to IEO issuers and contributors. It is not an exciting prospect to invest in a promising project only to enter the SEC’s bad books. 

Typically, IDO (Initial Dex Offering) is IEO and ICO rolled into one decentralized platform. IDOs emerged with the DeFi rally as a new form of raising capital on a decentralized platform. In the case of IDOs, it is the active community members that vet and approve projects and tokens. This mechanism is somewhat favorable as it incorporates diverse opinions. 

Also, DEXes and IDOs are part of the push to decentralization as regulators begin to shift their attention to cryptos. Furthermore, the synergy between DeFi and DEXes reinforces their value in the crypto world.

The exchange fee for IEO is spiraling out of control as the market develops, and together with increased scrutiny by the regulators put it at a disadvantage. The advantage of IDO over IEO is in its decentralized nature and scalability. You don’t need permission from any authority to trade in the exchanges.

Is IDO Replacing IEO and ICO?

The birth of new technology is most often similar to a human child that goes through various stages before it matures. IDO is still in its infancy and is quickly moving to puberty, with various noticeable characteristics such as instability. The concept of IDO is no doubt exciting and may replace IEO and ICO sometime in the future. However, it has to mature first before it can take over from IEO and ICO. 

UMA, the synthetic assets platform which placed $500k into a liquidity pool, best illustrates the above point. The total supply put up was 2% under a starting price of $0.26, similar to what the seed investors paid a couple of years ago. Investors scrambled to purchase the tokens, and the bonding curve effect occurred, raising the price in the process.

Competing traders set up higher gas costs, resulting in a higher $2 price of UMA within minutes. Some buyers were dissatisfied as they purchased the tokens at a higher price than the initial investors. 

This is the same problem that BZX’s buyers face on Uniswap, with BZRX token prices rising to 12 times within a minute. There is still no IDO model that balances fairness and the need to maximize the capital. In the future, this goal may become a reality, but there’s some distance to cover. 


No doubt IDO is the next big thing in DeFi and blockchain finance. However, it is still in the development stage, with instability and slight uncertainties, and it may be some time before it becomes mainstream and replaces IEO and ICO. In the meantime, IDO is in a wait-and-see situation.

But that does not mean you should stay away from IDO, at least for the time being. It means that you should be prepared to deal with the price instability until the platform matures and stabilizes in a not so distant future.

Crypto Daily Topic Cryptocurrencies

5 Best Websites to Buy Bitcoins Directly from Your Device, Anonymously

Blockchains are secure and imitable, but these publicly-circulated ledgers aren’t anonymous. In contrast, crypto assets are designed for transparency. If you make crypto investments, analysts can dedicate sufficient resources to track down your identity.

The Bitcoin blockchain and other crypto networks qualify as financial services, and the law requires them to know the customers they serve. The Anti-Money Laundering legislation requires them to collect your ID at some point while serving you.

Most folks took an interest in these digital assets because they thought transactions would be untraceable. While cryptocurrency networks don’t offer anonymity by default, there are ways through which you can buy bitcoins anonymously.

The convenience of buying cryptos directly from your device is unbeatable, and if you can remain anonymous while at it, even better! 

In this article, we highlight some of the websites that make it easier for you to achieve this. These websites charge a bit extra than what bitcoins usually cost, but the kind of privacy you’re after does not come for free.

So, let’s dive into five of the best websites that are absolutely worth your time. 

1. LocalBitcoins

LocalBitcoins facilitates peer-to-peer crypto exchanges. It works pretty much like eBay, and it’s fueled by willing-buyer, willing-seller consensus. You can find numerous sellers offering their bitcoins for cash. P2P Bitcoin exchanges enable sellers to bypass costly taxation, and LocalBitcoins will empower you to buy bitcoins without any ID.

Through LocalBitcoins, you can directly communicate and make deals with potential sellers. The platform makes money from these exchanges by levying escrow services. These services are powered by Smart Contracts, making it hard for scammers to dupe diligent bitcoin buyers.

This website is reliable because it rates sellers by keeping reviews of their transaction history. Therefore, you can tell apart genuine sellers from scammers by just scrolling.

You’d be surprised by just how many sellers are out there. The great thing is that LocalBitcoins is available anywhere there are sellers, and you could buy bitcoins anonymously at your local coffee shop.

2. BitQuick

This website lets buyers purchase bitcoins via cash deposits. It empowers you to buy bitcoins fast and anonymously, but the cryptocurrencies cost a bit more.

BitQuick was launched in 2013 and is registered in Ohio, United States. This website only serves Americans, and it only accepts cash deposits. You can buy bitcoins anonymously from sellers by depositing cash to their bank accounts.

You can head over to the website and find suitable sellers. After agreeing on the pricing, the seller locks currencies into the BitQuick escrow, and the bitcoins are transferred to your crypto wallet when you deposit the agreed cash amount.

For verification, you must meet up with the seller, who should take a picture of the deposit receipt and upload it to the system. This service only charges 2% for buying bitcoins.

BitQuick only sells bitcoins. You can buy as little as bitcoins worth $10 and as much as $10,000 worth of bitcoins at a go.

3. Wall of Coins

Wall of Coins is yet another peer-to-peer marketplace for trading cryptocurrencies. This service is registered under Genitrust Inc., and it generates daily traffic of 25,000 unique visits.

Wall of Coins is famous because users can buy bitcoins anonymously via cash. It helps buyers and sellers to come together, serving the United States, the United Kingdom, and Germany.

Enjoy anonymity, buying bitcoins without an ID because Wall of Coins is unregulated. You can buy and sell various cryptocurrencies on this website, which accepts three methods of payment, including:

  • Bank of America’s Teller Assist.
  • MoneyGram Deposit.
  • Cash deposits at banks.

This website does not impose transaction limits. It is also a great option because it offers a live chat, allowing you to communicate with sellers directly. You can also access customer support via phone calls.

Wall of Coins holds sellers’ bitcoins in escrow, and it releases them to you when you complete the payment instructions.

4. Bisq (Formerly Bitsquare)

Bisq offers fully decentralized exchanges, and it does not require any personal information or ID verification. Therefore, this service does not hold users’ funds.

It is a peer-to-peer network, and users exploit it for anonymity. They visit it via secure browsers such as Tor. Users trust the platform because of its open-source structure.

Bitsquare launched in 2016, and it allows bitcoin sellers to create offers by locking agreed amounts in escrow. Both sellers and buyers make holding fees of 0.001BTC, and they also pay transaction fees for the service.

Since Bisq does not hold any money, crypto or fiat, it uses arbitrators as escrows. Bisq arbitrators are frequent users of the platform who perform escrow services on third-party terms.

Arbitrators deposit huge security fees to Bisq to finance trust. If arbitrators make away with seller’s bitcoins or buyer’s fiat money, their deposits can make up for the losses. They perform this role in the pursuit of earnings from the transaction fees.

5. LocalCryptos

This website serves over 100,000 users in over 100 nations. It is a non-custodial platform offering peer-to-peer, decentralized crypto trade.

LocalCryptos empowers you to buy bitcoins anonymously, most transactions only taking ten minutes. No third parties are involved, and your messages with the seller are encrypted. This website is secure and trustworthy thanks to its blockchain integrity. It offers escrow services for you to buy bitcoins online without the fear of loss.

This Australian crypto exchange lets you track ads of people selling various cryptocurrencies. It does not impose national restrictions, and it is welcoming to foreign investors. 

The ease of use is phenomenal. You have over 40 payment options available, and you can use non-custodial wallets to enhance control over your financial assets.

LocalCryptos will charge you 0.75% in trading fees when you buy on its platform.

Parting Shot

Bitcoins are pseudo-anonymous, but most supporting services such as emails, banks, and custodial wallets require ID verification. Analysts just need to pick up your number or email address to reveal your identity.

Your best shot of buying bitcoins anonymously is through peer-to-peer exchanges. Sellers on these platforms are probably just as motivated as you are in seeking anonymity. 

No matter how anonymous websites selling bitcoins get, it beats the point if you use custodial wallets. Non-custodial bitcoin wallets don’t require your ID verification, but custodial wallets report to financial regulators.

Don’t get anonymous money and take it straight to the scrutiny of third-parties. Use non-custodial digital wallets with the best websites to buy bitcoins directly from your device, anonymously.

Do you know of other ways to buy bitcoins anonymously? Be kind enough to share your proven tricks with us in the comments section. Also, feel free to share this piece with loved ones who want to buy bitcoins anonymously.

Crypto Daily Topic Cryptocurrencies

Bye Bye Libra, Hello Diem!

If you think Bitcoin had a controversial entry into the cryptocurrency scene, think Libra. Diem, previously Libra, hasn’t even entered the market, and it is already getting unpopular nicknames like Global coin and Facebook Coin. 

Names stick, and Diem is already in a sticky mess. This permission-based blockchain deservedly suffers an identity crisis because it packages centralized financial services as decentralized exchanges.

Initially, Libra was a blockchain-based payment system conceptualized for anonymity and decentralization. However, lawmakers in various developed nations like the UK, France, and the United States spoke against it. Some did so immediately after Facebook unveiled the Libra whitepaper.

Libra’s release was meant for 2020, but an aggressive push back from regulators in 2019 obscured the plans. Different entities fielded varying concerns addressing the Libra whitepaper, and the pressure pushed Facebook and its partners into drastic actions. Some partners left, leaving Libra with a looming identity crisis.

In this article, we discuss the rise and fall of the Libra Association. We are also looking into what Diem has to offer and how it’s evolved since conception. Stick around to learn the original Libra concept and why it rebranded to Diem to reduce Facebook stigma.

The Original Libra Concept

Facebook initiated and championed the formation of the Libra Association, and it always had a crypto tech in the works. The plan was to launch a stablecoin, which would be backed by a basket of national fiat currencies and securities.

The Libra stablecoin was designed to be more stable than any national currency, and Facebook would integrate it within its extensive social media coverage. Therefore, the cryptocurrency would be stabler than Bitcoin and enjoy undisputed, global utility. However, the grand scheme fell under siege the same day it was unveiled.

The Libra Association was to create new currency units on demand and retire units redeemed for fiat currency. It was also planning to reserve transactional data on the ledger for Libra Association members only.

Therefore, the blockchain technology wouldn’t be pure but a hybrid, centralized blockchain. The Libra Association reserved the distributed ledger’s reconciliation only to its service partners to prevent random data analysts from scrutinizing transactions.

Basically, Libra proposed a system where traditional blockchain transparency was obscured and reserved for its partners only. The pretext for shrouding the transparency was protecting customers’ privacy, but Mark Zuckerberg unsuccessfully tried convincing the Senate that Libra would honor users’ privacy.

Libra Couldn’t Address Trust and Privacy Issues

The Libra Association failed because of trying to appease both legislators and crypto purists. Revolutionary bitcoin users prefer permissionless cryptocurrencies, which transfer value in a decentralized fashion. Decentralized currencies can bypass regulatory enforcement.

Since Libra was not decentralized, it was to rely on trust, qualifying it as a ‘de facto central bank.’ The Libra Association and its network would be run by powerful corporations working in collaboration, and sovereign governments were concerned the Libra currency would cause widespread economic instability.  

Unlike Libra, Bitcoin is apolitical, and it doesn’t need the backing of fiat currency. Bitcoin is designed to withstand the regulatory scrutiny that seems to be putting down Libra, and the pure blockchain network is trusted worldwide for its anonymity.

Remember, nobody really knows who created Bitcoin.

Libra is not censorship-resistant, and Facebook is infamous for infringing on users’ privacy. This social media platform was subject to Senate and Judiciary inquiries, and it was scandalized for abusing the privacy rights of billions of users.

International Regulatory Resistance: Why Are Governments Fighting Libra?

The French Finance Minister was the first to raise concerns over Libra, just minutes after the whitepaper became public. France strongly opposed Libra becoming a sovereign currency, and the ministry cited privacy issues and consumer protectionism.

The English central Bank was a bit more accommodating, but it called for regulation of the proposed permission-based cryptocurrency. German lawmakers took a more cautious approach, distrusting the motives of the currency.

The European Union didn’t want Libra outcompeting European currencies, mainly because Facebook has a firm marketing grip globally.

American politicians were also quick to thwart efforts of rolling out the proposed Libra Network. The United States House Committee on Financial Services directed Facebook and its partners to stop developing Libra.

The Federal Reserve, the President, Congress, and the Senate had severe concerns regarding money laundering, economic stability, national security, and privacy & consumer protection. 

In response to the sharp criticisms and widespread distrust, Facebook promised to halt Libra until regulators felt comfortable. C.E.O Zuckerberg also promised Libra wouldn’t bypass US regulators by launching in other nations.

Facebook’s lousy rapport with regulators over privacy and consumer protection took a toll on Libra. US regulators petitioned Libra partners to explain how the currency would safeguard national security, and the following partners consequently abandoned Libra:

  • PayPal
  • Visa
  • MasterCard
  • Mercado Pago
  • Booking Holdings
  • eBay
  • Stripe

Libra received overwhelming lousy press, and it acquired negative connotations such as:

  • Facebook coin: Libra partners were afraid they’d be considered complacent in privacy violations.
  • Global coin: Governments were afraid Libra would overtake national currencies with FB’s robust marketing capacity, undermining national security.

Libra Rebranding to Diem: the Fundamental Changes

Facebook had to address structural and branding issues with Libra. The designers of this digital currency made critical changes to attract regulatory approval. The most fundamental of all changes was liberating the cryptocurrency from Facebook.

Facebook and the Libra Association announced Libra would rebrand to Diem, and the currency would not compete with fiat currencies. Instead, Diem would only complement the dollar, and it would also abandon the strategy of stabilizing behind a basket of various national currencies.

Facebook first renamed its blockchain subsidiary to Novi from Calibra. Novi is Greek for ‘new way.’

Diem was also meant to give this digital currency the connotation of transparency. Diem is Greek for the word ‘day,’ and the network promises the transparency of daylight. If only it can earn the trust of governments and safeguard the privacy of users.

Apart from repairing brand image, the Libra Association had to rebrand because of trademark disputes with other international firms. Finco sued the Libra Association in a New York court for using its registered logo trademark, and the company claimed monetary damages from the Libra Association.

Four European companies also petitioned against the Libra trademark, arguing Libra was a current form of their verbal brands.

Parting Shot

This hybrid cryptocurrency is controversial because of its hybrid nature, but mainly due to Facebook’s robust marketing reach. Diem will likely revolutionize crypto assets significantly because of its permission-based blockchain. That’s why you should understand this proposed fintech.

Diem will only be backed by the dollar. It will offer widespread adoption of cryptocurrencies. This currency will combine the transparency and security of blockchains, and users can make secure global transactions.

This proposed digital has significant potential, and you should share your thoughts in the comments section. Do you have any concerns that the Diem Association needs to address? Let’s discuss.

Crypto Daily Topic

Platforms You Should Join to Avoid Falling for Defi Scams

Scammers couldn’t have found a better place to thrive. What with decentralization, the anonymity of transactions, and a lack of regulation characterizing the space? 

Despite its positives, the Defi sector is a jungle that readily swallows the unknowing. Navigating it requires heart, but more than that, tact. Identifying the snares and how to avoid them is the key to profitable investments in the sector.

2020 has witnessed a burgeoning of Defi projects offering their services and products. A good number of these are dubious, itching for an opportunity to rob you of your funds. 

How then are these fraudulent schemes perpetrated? Is there a way of identifying them? What measures can one take to protect themselves from falling victim to them? Are there platforms to guide investors in determining the genuine from fake projects? 

This article hopes to build your capacity to make informed decisions within the space by answering these questions.

How Do Scammers Carry out their Activities on Defi platforms?

Scams are as varied as there are scammers. Here are a few of their favored methods of execution.

  • Exit Scams

An exit scam is a scheme hatched by unscrupulous crypto promoters to defraud the public of their funds. They dupe investors by setting up a project with an attractive concept. After collecting funds from the ICO, the perpetrators evaporate with the funds leaving the investors in limbo. In 2020, for instance, YFDEX.Finance conned investors of $20 million in just two days of operating.

  • Pump and Dump

Pump and dump schemes involve artificially pushing the demand for a given token. A small group of whales identifies and purchases a token with low value. Their action causes the token’s prices to appreciate. This price hike draws other investors to acquire the token hoping for gain. On the price reaching a certain level, the whales dispose of their holdings at a profit. Thus, the prices plunge, leaving investors with hefty losses.

  • Admin Imitator

Using a social media platform, for instance, Twitter, Telegram, or Discord, a scammer impersonates a Defi Platform’s support team member. The scammer used credentials similar to the platform’s admin. They then ask either for private keys to resolve specific issues. Alternatively, they may require members to send ETH to a given address to complete their scam.

  • Fake Airdrops and Rewards

Airdrops and giveaways help. Defi platforms raise awareness about their platforms. Also, they increase community participation. At times scammers may provide fake Airdrops and reward to access private keys and personal info. They then use these to defraud you of your funds.

  • Defi Rug Pulls

Defi rug-pulls are con games that involve minting new tokens and publicizing them, primarily via social media. After that, the project lists on Uniswap, and owners inject liquidity. The unsuspecting investors will swap their ETH for the new token. The instigators then drain the liquidity pool. This way, they make away with the funds leaving holders with worthless coins.

  • Hardware Wallet Theft

Another scam involves selling users compromised hardware wallets. Their setup creates backdoors allowing hackers to drain one’s funds.  

How do you Identify Scam on Defi?

As the Defi sector is replete with scams, knowing how to identify them becomes an essential skill. Here are a few pointers:

  • Their Offering- Genuine projects have unique products tailored towards specific pain points, doubtful projects, on the contrary, piggyback on successful projects’ products.
  • Development- Are the developers continuously updating the code? If not, it could be a scam.
  • The founders- Are they known? What’s their reputation within the crypto space? Shady projects will have shady frontmen too.
  • Tokenomics- How is the token distributed? Scams typically inflate the token price while holding a majority of the token.
  • Language Use- If they use complex Defi jargon, it’s possibly a scam; legit projects use simple language.
  • Promised Returns- If the deal is too good to be true, think twice before committing.

5 Best Platforms to Sign Up For to Avoid DeFi Scams

The security of your funds could be a sign up away. The rise of Defi Scams has resulted in the emergence of platforms to protect users in the ecosystem. These platforms take it upon themselves to detect scams so that you don’t have to. Here’s your must sign up to platforms to avoid Defi scams

LID Protocol’s LIFTOFF

LIFTOFF is a platform that uses LID Protocol’s Certified Presales service to protect investors and projects. The service facilitates projects to raise funds. When they meet their targets, a smart contract locks the raised funds and tokens on Uniswap or other lending protocols. 

Once the presale concludes, it mints the liquidity pool tokens and burns them. Thus, it permanently locks the liquidity on the lending protocol preventing the occurrence of rug-pull scams. 


This China-based company is a market leader in blockchain security. Besides serving over 70 DEXs, 110 wallet providers, and 40 blockchain firms, it supports more than 800 tokens. It audits these projects’ security systems and smart contracts. 

SlowMist made headlines when it raised the alarm over an impending $2.5 million DeFi exit scam by Emerald Mine (EMD). The platform had transferred to a private account a vast chunk of tokens that users had staked.


PeckShield is another Chinese blockchain security company that strives to enhance blockchain security and usability. It produces cutting edge products targeting large scale systems. It reports on hidden vulnerabilities within networks. 

Additionally, it creates products and services to counter these vulnerabilities. PeckShield also flagged the Emerald Mine exit scam.

Blockchain Audit

This New York-based firm does more than build secure decentralized systems. It also audits Blockchains and reports on different projects’ states of security. Blockchain helps identify counterfeits, bullwhip effects, and fake reviews, among others. 

Again, it is a good source of information on upcoming projects and their security.


KryptoGO develops advanced blockchain solutions and offers consultancy services through linking projects with experts on various issues. It also undertakes audits besides reporting on different projects. 

Hence, it’s a valuable source of information for anyone researching a project of interest.

What to do to Protect Yourself from Scams?

To protect yourself against being scammed:

  • Do your research on the project before investing
  • Seek expert opinion on the project
  • Avoid sharing your private keys and personal information
  • Only get your hard wallets from legit outlets
  • Sign up to a platform that analyses Defi projects and trends

Final Thoughts

The Defi sector crawls with nefarious schemes. Consequently, it behooves every investor to be awake to this reality. Scammers have devised different ways of actualizing their goals. As such, knowing how to identify scam projects from the rest is critical. 

Simple actions like digging into the founder’s background, examining the project’s development history and its token structure can avert huge losses. Additionally, signing up to platforms like the ones identified here will guarantee you a safe investing experience.

Crypto Daily Topic Cryptocurrencies

DeFi Investing 101: A Complete Beginners Guide 

The crypto space is decorated with exciting projects. In the year 2020, however, none has caught the eye as much as DeFi has. DeFi is an acronym for decentralized finance, several protocols geared towards providing financial services while eliminating a central governing authority from transactions.

In the last year alone, the total value locked in DeFi funds has grown from $850 million to stand at $14.9 billion as of 15th December. This growth is indicative of the rising appetite for investments in the sector. The excitement that DeFi has created is pulsating; it almost sucks you in. Doesn’t it?

But as a newbie, should you take the plunge? What are the investment options available to you? Are there any pitfalls you should be wary of? If you’ve asked any or all of these questions and are reading this, then you’re in the right place. Today we journey through DeFi, providing a few pointers to help you along your investment journey.

Is DeFi Worth the Hype?

The kind of interest generated by DeFi speaks volumes about the sector’s potential. But what benefits does one derive from investing in the industry? The following are a few reasons why DeFi is attractive: 

  • Accessibility – DeFi products are available to anyone whenever they may be; with an internet connection, one is good to go.
  • Autonomy – through the elimination of central authorities, DeFi gives the users control over their financial activity.
  • Transparency – all transactions take place over the Ethereum blockchain enabling their public scrutiny before verification.
  • Higher returns- because of the attendant risk, the DeFi sector offers higher ROIs than legacy financial institutions.
  • Increased liquidity of illiquid assets- tokenization enables the representation of previously illiquid assets on the Blockchain enabling their easy transference.
  • Faster transactions – DeFi platforms allow for real-time P2P transactions saving time.
  • Affordable – DeFi platforms eliminate intermediaries from fees cutting transaction costs significantly
  • Borderless- DeFi allows seamless Cross-border transactions anytime, any day

What are The DeFi Investment Options Available to a Beginner?

The DeFi Sector replicates the functions of the traditional financial systems in a decentralized manner. Scanning through the sector reveals rich products for the interested investor. To the newbie, investing within the space need not be a chore. Here are a few easy pickings to set you off on your investment journey:

Decentralized Lending and Borrowing

Open lending protocols dot the DeFi landscape. These allow users with extra liquidity to loan it out to others in need of it. It works in similar ways to conventional lending. The only point of departure is that DeFi lending eliminates central authorities and intermediaries from the transactions.

Providing Credit through Smart Contracts and DApps

Smart contracts and DApps enable P2P interactions between lenders and borrowers. These tools spell out the terms of credit and repayment. Once the borrower complies with them, the platform automatically disburses the funds to their wallets. 

Collateralization is Key

They, however, have to provide collateral in the form of tokens. If they default on their obligations, they cede ownership of the tokenized asset to the lender.

Yield Farming

Yield farming is also liquidity mining. It is the provision of liquidity to a Decentralized Exchange (DEX) for a reward. At the center of yield, farming are liquidity pools, which are pools of tokens governed by a smart contract. They facilitate transactions over a DEX by providing the required capital. These rewards create extra income streams for the investor.

Rewarding Contribution

Investors who contribute to liquidity pools are known as liquidity providers (LPs). They can draw profit in two ways. First, they get token rewards for funding the pool. The rewards are an incentive to keep their funds within it. These rewards help to build up one’s total holding within an ecosystem.

Decentralizing Governance

Additionally, protocols may reward their investors with governance tokens. These tokens are essential in ensuring that the platform decentralizes fully. Developers may issue the tokens in several ways:

  • Through listing 
  • Distributing a share of the tokens to their founding community members before listing
  • Rewarding LPs with governance tokens besides the yield rates

Distribution of Fees

Secondly, the liquidity providers share fees that their pool attracts. DEXs mostly use the Automatic Market Maker(AMM) approach. AMMs allow P2P token trades within the liquidity pool Users pay fees- for instance, it is 0.3% of the transaction value on Uniswap– to complete their transactions. The AMM collects all the fees and distributes them to the LPs as a reward. 

Trading Over a DEX

The Decentralized Exchange (DEX) is an essential cog for the running of the DeFi protocols. They enable P2P transactions occurring in the space. There are different trading and, therefore, investment strategies one may adopt. Here we focus on a couple:

Margin Trading

Margin trading involves trading a financial asset using credit obtained from an AMM. The financial assets provide the collateral for the loan taken. After trading, they pay back the loan plus fees and keep the difference as profit. In case of a loss, the protocol will deduct the loan and expenses first. One should therefore exercise caution trading this way as they could lose the collateral.

Synthetic Assets

Synthetic assets are token representations of derivatives. These assets allow the tokenization of real-life assets, for example, property hence their trading on the Blockchain. Without them(synthetic assets), they would remain illiquid. 

No-Loss Games and Lotteries

Among DeFi s wide gamut of attractive services are games and lotteries. A good example is the PoolTogether game. It’s some risk-free lottery. Here investors put their funds in a shared pot. One participant wins the profit accruing, while the rest get their funds back.

Should I be Concerned About My Investing in DeFi?

Despite its attractiveness, the DeFi sector is still in its infancy. As such, it is essential to approach investments within it cautiously. Let us now shift our attention to a few concerns besetting the sector.

  • Price fluctuations – the cryptosphere as a whole is very volatile; the value of tokens and coins can spectacularly appreciate and depreciate in equal measure resulting in untold losses.
  • Scalability issues – Even with the implementation of Ethereum 2.0, there’s lingering skepticism that the sector can handle bulk transactions at a go.
  • Smart contract vulnerabilities – hackers have on occasions exploited vulnerabilities in some smart contracts to steal from DEXs.
  • Lower liquidity compared to the traditional financial systems – even though the sector shows so much promise, its TVL pales compared to the liquidity held by mainstream finance globally.
  • Over- collateralization of credit – borrowers have to stake an asset of higher value than the loans they qualify for

Stick To The Following, and You’ll Be Fine

By now, you’re getting the hang of DeFi investments. Now let’s look at some of the best practices to guarantee you a fulfilling investment journey:

i) Be Thorough in Your Research

Don’t take anyone’s word blindly. It’s good to listen to others but folks that up with your research about the market. This way, you can determine if any token is worth the time and money. It’s critical to examine:

  • The token distribution,
  • The team behind the project, 
  • The word on the street concerning the project
  • Partnerships the project has drawn
  • Its roadmap to implementation

The above scrutiny enables you to understand how trustworthy the project is.

ii) Spot the Opportunities

After verifying the project’s authenticity, the next step is to determine the most profitable tokens. Participating in the initial funding rounds enables you to acquire tokens affordably, enhancing your chance to turn positive returns.

Again it is essential to look at projects launching under unique funding models. Traditionally, such projects have generated a handsome profit for investors.

iii) Manage Your Risk 

After identifying the ideal project, now comes the actual investing. You then proceed to find an exchange that supports the trading pair that interests you.

Proceed to place your order and set your desired stop loss value. Consider initiating a trailing stop order. You can use it to maintain the stop loss as the asset appreciates.

Final Thoughts

The DeFi sector continues to grow, buoyed by the rising demand for its products. This growth comes with many different opportunities for any crypto enthusiasts. Compared to traditional financial systems, DeFi offers convenience, practicality, and affordable transactions. 

Additionally, it provides better ROIs than conventional financial systems. It’s easy to see why they could take any beginner’s fancy. That said, you should exercise prudence in your investment choices as they impact your venture’s profitability.

This article has traversed investments in the DeFi sector. It arms any newbie with the fundamentals that, if adhered to, will make their foray into DeFi a fulfilling one.

Crypto Daily Topic Cryptocurrencies

The Best Use Cases For Decentralized Finance Projects

There’s hardly a facet of our lives left untouched by blockchain technology. From the most ubiquitous to the complex of our engagements, its effects are discernible. But perhaps the one sector where its effects are most discernible is in finance. The shortfalls of the legacy financial systems provide the right environment for innovation to sprout. Fintech firms are outdoing themselves in the production of products and technologies aimed at bettering users’ experiences.

This year has seen the emergence of many disruptive technologies. However, non features as prominently as decentralized finance(DeFi). DeFi is technology’s response to an inadequate financial system. 

In this article, we tackle two significant aspects of Defi. First, the significance of Defi projects. We also present the best use cases to give you insight into this revolutionary technology. 

Let’s get into it!

What is the Significance of Decentralized Finance Projects?

Defi projects are universally beneficial. The buzz they continue to generate emphasizes this truth. Here’re a few of the benefits associated with them:

  • They streamline transactions- smart contracts execute exchanges increasing efficiencies.
  • Increase the security of transactions- they draw on the Ethereum blockchain’s Immutability to secure trades.
  • They are scalable- Ethereum’s composable software ensures that DeFi protocols and applications are interoperable, giving the developers and product the flexibility to build on top of existing ones. 
  • Increase transparency of transactions- distributed ledger technology enables one’s peers to access and verify their transactions, curbing fraud.
  • It is permissionless- DeFi facilitates anyone with a crypto wallet and the Internet to access its applications regardless of their location.
  • Gives the user control over their data- Web3 wallets like MetaMask interact with permissionless dAapps and protocols to provide users custody of their assets data. 

What are the Best Use Cases for Decentralized Finance?

From the preceding, it is clear that DeFi projects are beneficial. The question then arises, where can we best use this technology? DeFi technology has wide usage. The following are some of the prominent use cases.  

i) Management Of Assets

DeFi protocols give users full custody of their funds. Additionally, Crypto wallets help one easily and securely interact with decentralized applications (dApps) for different transactions. These transactions range from trading and transferring crypto to earning interest on their crypto holdings. Tracking one’s assets becomes easy this way.

ii) Gaming

Defi platforms are interoperable. This feature has opened up opportunities for developers to build cross-platform protocols across a variety of verticals. 

Ethereum-based games have gained popularity due to their inbuilt economies and rewards. Take the case of the PoolTogether game. Its users acquire digital tickets using the DAI stable coin. They then pool their tokens for lending on the Compound money market.

iii) Provision of Credit

DeFi allows the creation of P2P lending pools and borrowing contracts. For instance, Compound -an autonomous interest rate protocol- integrates with most DeFi platforms, enabling users to earn interest in crypto that they’ve lent.

Compound’s smart contract automatically matches creditors to borrowers. Additionally, it determines interest rates by comparing the volume of the borrowed to supplied funds.

iv) Decentralized Exchanges

Decentralized exchanges (DEXs) are crypto trading platforms allowing P2P transactions. They achieve this by eliminating central authorities. As they’re non-custodial, they mitigate price manipulation, hacking, and theft.

DEXs are the mainstay of token projects. They enhance their access to affordable liquidity as they allow projects to list without fees. This way, they differ significantly from centralized exchanges that charge higher prices per listing.

The degree of decentralization varies with the exchange. Whereas exchanges may centrally host order books and other aspects of a users’ account, they don’t hold their private keys. Examples of popular DEXs in the DeFi space currently include AirSwap, Liquality, Mesa, Oasis, and Uniswap.

v) Decentralized Insurance

Investing in cryptos (DeFi included) comes with its fair share of risks. As such, different products that hedge against risks in this space are available. They help protect against market crashes, hackings, failure of smart contacts, among others. Nexus Mutual is one such example.

The players within the Defi space underwrite the risk. That is to say, they pool resources to acquire the premium providing the cover. Utilizing smart contracts makes the products transparent. Anyone can access the payout terms via the Blockchain.

vi) Issuance of Synthetic Assets

Synthetic assets are tokenized representations of derivatives. An Ethereum based smart contract locks them to the Blockchain. These derivatives may represent real-world assets, including fiat currencies, bonds, commodities, or even cryptos.

Synthetic assets are tradeable. Consequently, they allow the disposal and acquisition of assets that are illiquid or difficult to obtain. The Synthetix protocol is essential to their issuance. It employs a 750% collateralization ratio that guards against price shocks.

vii) Liquidity Mining

Liquidity Mining, also known as yield farming, is holding digital assets for rewards. Through smart contracts, owners of crypto assets get incentives for keeping rather than trading them.

Participation in these projects requires stacking liquidity provider (LP) tokens. One obtains these through providing liquidity to a DEX, such as UNISWAP. Users then stake their tokens to mind new ones for exchange.

viii) Identity Management

Traditional financial systems rely on KYC guidelines to comply with AML and CFT regulations. Defi, on the other hand, uses Know- your-transactions (KYT) protocols to deter fraud and other financial crimes. KYT uses the behavior of participating addresses rather than individual IDs to assess and stem the risk for financial crime. The assessment is in real-time. 

ix) Enhancing Financial Inclusion

In tandem with Blockchain-based identity systems, DeFi opens up financial opportunities to those previously excluded. It eases collateralization requirements for those seeking credit. Again it delinks creditworthiness from such aspects as income and ownership of property. Instead, it shifts it to attributes like financial reputation and activity. 

x) Development of Stablecoins

A stablecoin is a cryptocurrency whose value depends on a stable asset or group of assets. The supporting assets could be fiat commodities or other cryptocurrencies.

Intended to mitigate the volatility of cryptos, they have found a home in the DeFi space. They are essential in remittances, borrowing, and lending. Another area they’re gaining prominence in is the Central Banks Digital Currencies.

xi) Provision of Marketplaces

Many marketplaces have arisen to exploit DeFi functions. These allow P2P exchanges globally. From them, traders and consumers enjoy a wide variety of products and services.

Final Thoughts

The year 2020 could be defined as the year of Defi. During this period, interest in this disruptive technology peaked. The heightened interest attests to its significance. Not only will it increase access to financial services, but also ease transactions besides securing them. The technology has wide useability. For instance, it is essential in credit provision, creating market places, and even combating financial crimes. Even though it is still developing, it has shown the potential to alter our economic landscape for the better. As we expand research and development in the area, we can only look forward to exciting products and solutions in the space.

Crypto Daily Topic Cryptocurrencies

Top 5 DeFi Projects to Look Out for in 2021

The DeFi industry is still in its infancy stage but has already registered some impressive growth over the years. The industry’s total value is currently locked at $14.92 billion and is expected to grow in the coming year. 

There’s no doubt that DeFi brings about some unique solutions that are quite lucrative for investors of all kinds. If you’ve had your eye on the crypto industry for a while, there are chances that you’ve thought of putting your money in this exciting venture. But if you don’t know how to get started, you may feel stuck when choosing the best projects.

If you’re in this position, this article is just what you need. Buckle up, and let’s dive into the five best DeFi projects you should consider investing in the coming year. 


Anyone who has been in the crypto industry for quite a while will agree that decentralized exchanges were primarily associated with thin order books and poor UX. These issues, coupled with exorbitant fees, centralized gateways, and too many transactions was the reason dex enthusiasts demanded a simple yet effective decentralized exchange. 

Uniswap was launched in 2018 as an automated liquidity protocol for ETH and ERC-20 tokens. The platform has its own token, UNI, which is instrumental in governing protocol changes. 

One of the things that make Uniswap unique is that it doesn’t use order books but instead has an automated market maker. Users only need to select the assets they want to trade, and the platform automatically completes the transaction. 

Uniswap presents several advantages, which is why you should hop onto it already. It has no listing fees for new tokens, and users don’t have to complete the KYC checks. Besides, you get full custody of your funds and an excellent way to earn some extra tokens through the platform’s liquidity pools. 

If you choose to invest in the platform, you could either be a casual user, an arbitrageur, or a liquidity provider, all of whom play essential roles in the ecosystem. 

Yearn Finance

Yearn.Finance should be your go-to project if you’re looking to maximize the annual percentage yields on the cryptocurrencies you’ve deposited in DeFi. The unique project is an array of DeFi protocols built on Ethereum and designed for high-yield returns through liquidity pools and community governed lending protocols. Like Uniswap, Yearn Finance uses an automated market marker to allow users to convert tokens and earn from both lending and trading fees.

Yearn Finance is still relatively new in the industry, having been launched in February 2020. The platform had a rapid ascent in August, which saw its value rise to $650 million, accounting for a significant percentage of the entire industry’s value.

According to Jesse Walden, CEO of Variant Fund, “The unifying goal of all Yearn products is to create a simple, intuitive interface to all of DeFi.”

Yearn’s intuitive interface makes trading easier for all users. The platform is a portal for other DeFi products and has the YFI as its governance token. Yearn is considered entirely decentralized because the YFI tokens cannot be pre-mined, and the platform didn’t hold an ICO.

Although YFI was initially designed to be entirely community-governed, it can now be traded on other platforms such as Uniswap.

Curve Finance

You’ve probably heard of stablecoins, and if you know a thing or two about cryptocurrencies, they must have piqued your interest as an investor. Well, Curve Finance is an excellent DeFi platform if you’d like to trade-in stablecoins efficiently. It provides a solution to one of the most considerable problems in the DeFi sector; price slippage.

Like any other ideal marketplace, demand and supply forces determine the lending rates in DeFi. Now, suppose you want to trade between USDC and DAI. If the lending yield for USDC becomes higher than that of DAI, lenders will want to migrate to USDC. Curve Finance allows you to effectively do this and still earn better than you would with a regular DEX.

Switching between stablecoins effectively helps correct any anomalies in the interest rates that may result from mismatches in the demand and supply. Users can keep their profits once the interest rates are back to normal. 

Curve Finance provides one of the best ways to earn as a liquidity provider with returns of over 300% per year for BUSD. This is made possible by providing liquidity to other DeFi protocols using the deposited funds. This move generates interest for the other protocols, and Yearn, in turn, assigns the interest to liquidity providers. Additionally, they receive some CRV tokens and a cut of the trading fees from the platform.


Speaking of stablecoins, DAI is one you should definitely watch out for in the coming year. The coin has its price pegged to the US dollar, which helps maintain its value. Whenever users on MakerDAO, the protocol behind DAI, take out a loan, the stablecoin is created. The decentralized nature of the protocol, together with the lack of volatility, ensures that DAI remains stable and transparent. 

Initially, you’d only be able to use ETH as collateral for DAI. However, the stablecoin now supports different cryptocurrencies as collateral for a DAI loan. You can place your cryptos and get them back for the same price, despite changes in the coins’ values. 

There are plenty of stablecoins available, so what makes DAI any different? Well, if you are really against censorship by governments and other regulatory bodies, you’re going to love using DAI. It is backed by smart contracts, which makes it resistant to censorship. It also provides privacy when transacting since users don’t need to complete KYC checks or create any accounts. 


Kava developers used various technologies to create a system that would allow users of significant crypto assets to access collateralized loans and stablecoins. The network uses USDX as its stablecoin, and users get to collateralize their crypto assets in exchange for the stablecoin. 

To help you gain a leveraged position in the market, you could take out several collateralized loans. For each of these loans, you’ll receive an equivalent amount of USDX to create synthetic leverage. You can then earn a passive income from the platform by staking and bonding your USDX coins. 

Kava uses a dual token system that ensures usability and flexibility. The native token for the blockchain is Kava tokens, which double up as the governance and voting tokens. Kava tokens help to ensure the platform’s security through staking, which also earns users block rewards. 

Kava has already made a name for itself in the business world by gaining some major entities’ attention. For example, Arrington Capital, Ripple, and Cosmos are behind this DeFi project, which provides some assurance in its profitability and sustainability. 

Parting Shot

There’s no denying that the DeFi industry has taken giant leaps over recent months and will continue to do so in 2021. Like most investors, you’ll undoubtedly want to add long-term value projects to your portfolio, and DeFi is an excellent way to go about it. 

Sure, it’s totally okay to be skeptical about new ventures such as this. However, the DeFi industry has proven to provide solutions to problems poised in centralized finance. 

Just as you would with any other investment, it’s best to do your due diligence and learn as much as possible before placing your money in a DeFi project. These five projects should give you an excellent head start for your 2021 investments. 

Crypto Daily Topic

5 Crucial Principles for Investing in DeFi

Unless you’ve been blind to the crypto industry in 2020, you’ve undoubtedly caught wind of the DeFi craze. On the one hand, some investors are minting lucrative yields from the industry. On the other, some are losing their life savings. 

If you’ve been following the trend, you’ve probably heard loads of things about investing in the new industry. Influential Bitcoin advocate, Anthony Pampliano, tweeted that all it took to shut down most DeFi dapps was for Jeff Bezos to shut down AWS. The tweet sparked quite a debate on the decentralization aspect, which is the core of DeFi projects. 

Truthfully, investing in DeFi is quite similar to any other worthy project. It comes with risks, and investors need to do their own research before getting on board. 

Well, DeFi is mostly uncharted territory for most investors, including crypto enthusiasts- which is why this article will come in handy. Here are some crucial principles you need to have in mind before deep diving. 

Check the Number of Active Users 

The value of a blockchain is dependent on the number of users, seeing as the technology solely relies on networks. Just like other network companies like Facebook, the more people who join the platform, the more valuable it becomes. 

When determining whether to invest in a Defi project, check the number of active users on the platform. Luckily, unlike other network companies, DeFi projects built on Ethereum allow you to view real-time data on the users. With other platforms such as Twitter and Facebook, you have to wait for the quarterly reports to get this insight. 

Additionally, you should also check the growth in the number of users. You want to invest in a project that registers sustained growth that keeps accelerating over time. The network effects of blockchain mean that the number of users won’t grow linearly as you’d expect, but rather quadratically, as shown below.

Source: Dune Analytics

Put Your Money in What You Understand

“Never invest in a business you cannot understand.” – Warren Buffet.

If you cannot take it from me, then take it from the investment mogul. Buffet has built his empire by investing in multiple businesses over the years, but he always keeps it simple. You should apply the same principle when investing in DeFi projects. 

The DeFi world is complex, and before placing your money anywhere, you should ensure you understand as much as you can. Scam projects take advantage of the industry’s complexity to dupe investors into getting on projects that will not yield much, or worse yet, lead to significant losses. 

It sure is boring, but go through a project’s documents, including the whitepaper, beforehand and understand the basic tokenometrics. What is the project’s native token, if any? How exactly will you make profits? What is the project’s primary aim? 

Similarly, you don’t have to leap for every DeFi project that seems promising. Implement the 20-slot rule to help you separate the wheat from the chaff. 

Watch Out for Gas Fees!

Most DeFi projects will quote gas fees for transactions, which are simply service charges. You’ll probably not bat an eyelid on the gas fees, but here’s why you should. 

For starters, these platforms won’t display the gas fees in fiat currency. Instead, they’ll have it in ETH, which makes it easier for you to ignore it. However, the fees are absolutely real, and when gas fees are high, you’ll probably end up making a loss. 

Say, for example, you want to invest $1000 in tokens, but the service fees are $50 worth in cryptocurrencies. With just one transaction, you’ll already have lost 5% of your investment. 

Usually, gas fees will skyrocket when there are too many people using the network. Therefore, you end up paying more for the same transaction. Higher gas fees also indicate you’re following the crowd, in the case of FOMO. 

As a rule of thumb, stay away from investing in DeFi when fees are high to avoid FOMO and FUD

Don’t Invest in the Platform, Buy DeFi Tokens Instead

If you’ve read up a bit on investing in DeFi, this principle is probably contrary to what you’ve heard from the industry. Yield farming is the most common strategy in DeFi platforms and involves moving your tokens between protocols and platforms to wherever they’ll earn the most interest. This approach is time-consuming since you have to keep checking what platforms are gaining interest so you can move your assets there. 

Although this is a popular way to invest in DeFi, stay away from it. Instead, invest in the protocol, which is quite similar to buying the company’s stock. 

I know what you’re thinking; most of these projects are decentralized, and there are no companies. So, how exactly do you go about that? 

Most DeFi projects will offer governance tokens that allow holders to vote on proposed changes. In this way, you gain something similar to a shareholder’s vote, which is like buying the company’s stock. 

Therefore, instead of locking up your crypto assets on the platform or chasing after yield farming, consider investing in the platform’s native token. If the project is viable, your tokens’ value will keep increasing with an increased number of users, which is just what your investment portfolio needs. 

DeFi is only a Portion of Your Blockchain Investment

Investing in blockchain projects is a fraction of your entire portfolio, and your DeFi investments should be a fraction of that. In other words, your investment basket is an entire pie, blockchain is a slice of it, and DeFi is only a portion of the blockchain investments. 

The majority of your investments should be in stocks and bonds. A smaller portion should then go to the blockchain projects you’re interested in, and an even smaller portion of this in DeFi. This way, if the DeFi markets were to crash suddenly, you’d only make a small loss. 

Similarly, with most of your investments are in stocks and bonds, a crash of the entire blockchain market will only slightly affect your portfolio. 


Investing in a new industry requires caution, but when it comes to DeFi, you have to be particularly careful. There are two sides to the coin, and you could either make some good money or incur losses. Whatever the case, be sure it’s what you want to do and that you aren’t only following the ongoing DeFi craze. 

Every investment bears some risk, and you just need to decide which one’s worth your money. So go ahead and identify an investment you’d like and implement the above strategies for an enhanced fighting chance. 

Crypto Daily Topic Cryptocurrencies

How Bitcoin Has Transformed Crowdfunding

Before the world started seeing cryptocurrency as a valid way of sending and receiving money, global charities and fundraisers relied on slow, geographically-limited, censorship-prone, and expensive donation methods. Admittedly, raising funds to promote educational content for children with special needs wasn’t a particularly easy feat a decade ago – just, for example. Bitcoin came, and activities in the crowdfunding space started breathing a new life. Fundraising for charity causes moved from local to international audiences, and project champions shifted their reliance from donors to the general public. 

In this article, we look at how the adoption of cryptocurrencies (Bitcoin) has transformed crowdfunding. We will review why Bitcoin was best suited for the job and the different forms in which crowdfunding has manifested.

Why Bitcoin?

It would be unfair to dismiss the contribution that altcoins have made to the transformation of crowdfunding. However, Bitcoin remains the leading crypto and, by far, the biggest contributor to this transformation. The transformation has mainly been due to the following characteristics, which fiat currencies lack:

#1. Anonymity – There are crowdfunding causes in which contributors wish to remain anonymous. The (relatively) anonymous nature of Bitcoin has made this possibility a reality. 

#2. Global presence – Unlike fiat money, Bitcoin is available in virtually all the countries of the world. This has made it a suitable currency for collecting donations from multiple countries. 

#3: Lower transaction costs – Compared to traditional money transfer platforms, Bitcoin offers relatively lower fees. While this might not make much difference to a user donating $5, a charity could realize massive savings, particularly if it has to bear the transaction’s cost. 

While Bitcoin has taken the lead, other cryptocurrencies have gained popularity in the recent past, especially due to increased privacy concerns. For instance, Monero, Zcash, and Dash have seen a rise in use among fundraisers focused on privacy. 

Centralized versus Decentralized Crowdfunding 

The case against centralized crowdfunding has been gaining momentum, with proponents arguing that it goes against the spirit of cryptocurrencies. Centralized crowdfunding has nothing to do with the centralized nature of fiat currencies. Instead, it is the idea that crowdfunding should not be facilitated by organizations in business just for that. There are firms, such as Patreon, whose core business is collecting funds on behalf of charities. Such organizations have been condemned for giving preferential treatment to charities they consider worthy of public support. 

Given this background, crowdfunding can either be organized privately or through centrally-managed platforms. Similarly, it can be done for individuals or organizations. Crowdfunding platforms are able to reach a wider audience within a short time, but usually charge some commission. Some of the common ones include Classy, Fundly and Crowdwise, which are popular among nonprofits. For personal fundraisers, sites such as GoFundMe and YouCaring are common. Individuals can also raise funds by posting requests on social media. The bottomline is, there is no one way to crowdfund. 

So, let’s look at some of the different ways through which Bitcoin has made the crowdfunding scene more exciting. 

#1. Venture Capital (VC) Funding

When small and medium-sized enterprises want to expand, they usually seek capital from investors. In such cases, investors offer their support in exchange for part ownership of the enterprise, which they call equity. Such investors can end up acquiring a majority stake in the enterprise and controlling the company, possibly against the founders’ vision. This undesirable situation is easily avoidable through alternative crowdfunding approaches discussed below.

For various reasons, such as higher returns, venture capitalists have shown a lot of interest in supporting blockchain projects such as PiggyBank, BlockCypher, and Chronicled. The growing prospects for Bitcoin have further boosted the confidence venture capitalists have on blockchain-based startups.

Apart from inspiring traditional venture capitalists, Bitcoin has also created a new breed of crypto-focused VCs such as Node Capital. The contribution of such VCs in powering new enterprises cannot go unnoticed. For instance, investments in companies such as Coinbase and Ripple are now paying off handsomely. 

#2. Initial Coin Offerings (ICOs)

ICOs have become the new standard for startups to raise funds for their projects. Unlike traditional venture capital funding, ICOs do not target high net-worth investors, neither do they promise equity in the business. On the converse, they allow ordinary people to contribute to the growth of a project and get tokens in return. These tokens can be redeemed, exchanged for crypto or fiat money, or accord holders special privileges in the company. 

ICOs provide startups with a promising avenue for generating funds for whatever project the founders envision. Without the widespread adoption of Bitcoin, most of these startups would still be struggling to raise capital to bootstrap their operations. 

#3. Anonymous Donations

Crowdfunding has found its way to anonymous donations, especially in the wake of increased government censorship. Where authorities believe organizations are raising funds for clandestine or outright illegal projects, they normally freeze donations. For organizations that insist on pursuing their fundraising objectives despite government restrictions, anonymous fund transfer becomes the only available option. 

Bitcoin offers a substantive level of anonymity when it comes to transferring funds. While receiving addresses can be linked to a specific organization, the actors behind the organization can choose to remain anonymous since transacting with Bitcoin does not necessarily involve any know-your-customer (KYC) processes. The obscurity provided by Bitcoin’s privacy also benefits donors since those who do not wish to be identified with a certain movement can donate without leaving any trace of their identity. 

Activism has equally benefited a great deal from anonymous donations, thanks to Bitcoin. Activist movements, such as #EndSARS would have suffered a large blow if donations were restricted to fiat money. You see, it is very difficult to raise money to fight a government when you’re relying on currency issued by the same government you’re fighting. Other than beating logic, such efforts are tantamount to pushing against the wall.

Final Thoughts

Bitcoin has shaken many finance subsectors. Crowdfunding, which is a form of alternative funding, is among those sectors that have seen a massive transformation. Bitcoin has made crowdfunding possible from privacy-focused charities to those seeking support from global audiences in circumstances where it was previously impossible. The idea of crowdfunding using crypto has also inspired new funding initiatives, such as anonymous donations. It has also become easier for small organizations like startups to raise funds to power their ideas. End users have had new opportunities to contribute to ideas they believe in and would love to support – something that was less heard of before the age of Bitcoin crowdfunding. Overall, Bitcoin has made crowdfunding more accessible to the masses, which has in turn inspired radical ideas across the fundraising industry. 

Crypto Daily Topic Cryptocurrencies

What Exactly is Proof of Keys?

In crypto, there’s a saying: “not your keys, not your coins.” This means that if you do not have sole custody of your private keys, you cannot really claim to have ownership over your funds. If your keys are with a crypto exchange or any other third-party custodian, you may as well forget about being the true owner of your funds. 

Many crypto owners today make the mistake of leaving their funds on exchanges. But considering the insecurity history of crypto exchanges, they are far from the safest place to keep your cryptocurrency. Millions, (or perhaps billions) worth of crypto has been lost through hacks on exchanges. The most famous one is Mt. Gox, in which people lost vast sums of Bitcoin and are yet to be compensated up to this day. And while that may be several years ago, crypto hackers are always upping the game. This is to say exchanges are not a safe place to store your crypto. 

So, how does that have anything to do with proof of keys? 

Understanding Proof of Keys 

Proof of Keys is actually ‘Proof of Keys Day’ in full. The event is the idea of crypto investor Trace Mayer, who came up with the concept so as to spread awareness of the need for crypto owners to practice self custody of their private keys and, in so doing, reclaim their financial independence. Proof of Keys is an annual celebration every January 3rd. 

Proof of Keys day is an idea geared at preventing crypto investors’ reliance on exchanges to store their funds. The first Proof of Keys event happened on January 3rd, 2019 – to intentionally coincide with the day of Bitcoin’s genesis block. 

In essence, Proof of Keys Day is a day to celebrate financial autonomy. The bigger picture is to remind crypto investors of the importance of keeping their private keys in their personal wallets. By having full control of their keys, they can rest assured that no one has access to their crypto holdings. 

Crypto holders have access to numerous types of crypto wallets – from online wallets to paper wallets to desktop wallets to hardware wallets. However, hardware wallets are the most secure options out there – and among the most reputable of these is Ledger, Trezor, and KeepKey. Hardware wallets are not connected to the internet. This renders them immune to hackings and other online vulnerabilities. 

What are the Intended Outcomes of Proof of Keys Day? 

The philosophy guiding Proof Of Keys Day is perfectly in step with that of Bitcoin: to eliminate third-party intermediaries and operate in a trustless electronic money transfer system where parties can operate securely and confidently without sacrificing their financial sovereignty. With that, let’s look at the intended outcomes of Proof Of Keys Day: 

#1. Teach new crypto investors how to move funds around

Crypto holders should be knowledgeable and comfortable enough to move their coins around. While this may be as easy as ABC for veterans, it can be intimidating for newcomers. From the (seemingly) complex key numbers to the wide range of wallets, it can all look absolutely bewildering. For this reason, Proof of Keys Day encourages investors to familiarize themselves with the different types of cryptocurrency wallets and how to use them. It also reminds them how the transfer of value happens on the blockchain. 

#2. Remind crypto holders to actually own their funds 

Like we’ve mentioned before, the main objective of Proof of Keys Day is to encourage crypto investors to take ownership of their private keys. When you leave your funds on an exchange, you essentially forfeit complete control of your money. Though it takes place only once a year, Proof of Keys Day is a chance for people to reclaim control of what’s theirs. 

#3. Expose dishonest crypto exchanges

Financial entities are known for fractional reserve banking – which is the practice of leveraging existing customer deposits by lending out more funds than what they truly have at hand. While this profits the institutions, it’s risky for the real owners of the money since a ‘bank panic’ could cause bankruptcy for the institution. In the crypto space, Proof of Keys Day could encourage holes of crypto investors to withdraw their money from exchanges. If enough investors do that, it may expose exchanges engaging in fractional reserve tendencies or those that lie about their actual reserves. That’s if the publicly verifiable nature of blockchain networks has not already done so.

#4. Celebrate Bitcoin’s genesis block

Last but certainly not least, Proof of Keys Day allows investors from all over the world to celebrate the Bitcoin genesis block – the first day a block was mined on the Bitcoin network. The genesis block was the first-ever Bitcoin transaction. In the transaction, Satoshi Nakamoto sent 50 BTC to Hal Finney – an early Bitcoin developer. It’s also, to an extent, a day to remember the first ‘commercial” Bitcoin transaction when somebody bought two pizzas for 10,000 Bitcoins.

How to Participate in the Proof of Keys Movement

Whether you’re a newcomer to crypto or a veteran, you’ll find that participating in Proof of Keys Day is very easy. Again the idea is to express financial independence by moving all funds from exchanges or other custodial services. 

To get started, take an inventory of all crypto coins you have on exchanges. This will show you who really owns what in regards to your money. Then, proceed to choose a crypto wallet of your choice. Ensure to choose a wallet that you’re comfortable with and one with a sufficient level of security. Next, transfer your funds from custodial platforms to your personal wallet. This means you can now control your private keys and, with them, your funds. 

Some crypto investors celebrate Proof of Keys Day, even if for one day. This involves moving their coins from exchanges for one day in a symbolic move to affirm their financial autonomy. Active traders are the ones more likely to engage in this kind of practice. This is because they need to have their crypto funds in exchanges to facilitate trades. After the symbolic transfer of funds to their personal wallets, they usually move them back to exchanges. But for long-term investors (HODLers), it’s better to keep their money in their personal wallets. 

Final Thoughts

Proof of Keys Day is a simple concept – but quite monumental in meaning. It’s a day to remind crypto holders to take back ownership of their funds by taking control of their private keys. Hordes of crypto investors participate in the event with a single goal of affirming their financial sovereignty. It’s a day to educate people and remind them about crypto security principles in general. 

Crypto Daily Topic Cryptocurrencies

What’s Phishing and How Can You Protect Yourself?

Wherever there’s money to be made, you’ll always find people ready to do so using unscrupulous means. After crypto blew into the scene, scams, especially internet-based ones, have gotten even more lifeblood than ever before. And unsuspecting players continue to fall victim. 

Phishing is a fraud technique that cyber thieves use to con people. Usually, it’s used to obtain information that an attacker can use later against their victim. In some circumstances, the criminal will trick or mislead a user to transfer their funds. Of course, it’s never that straightforward – there is a lot of planning and psychological manipulation involved.

This article will look at phishing in detail, how it features in cryptoverse and how you can protect yourself. 

How Does Phishing Work?

It’s crazy to think that the most successful phishing attack is not technical at all. Phishing is one of the most prevalent and most successful cyberattacks, yet it does not often require any special technical know-how. 

In a typical phishing scenario, the scammer will usually craft a convincing email to get you to reveal some information about yourself, your place of work, or any other targeted entity. What makes these attempts so successful is how an attacker can refer to you by your name and other personal details. At a glance, it might be hard to suspect anything unusual.  

While phishing was originally done via email, advances in other forms of messaging such as short messaging service (SMS) and instant messaging services such as WhatsApp have led to attackers diversifying to these upcoming channels. Today, phishers will even attempt to trick you through voice calls.

Also, while phishing is traditionally referred to as email scams, the term is now used to refer to any form of tricks that seeks to swindle users. With that, let’s take a deep dive into phishing and what it’s all about. Importantly, we’ll explore ways in which to cushion yourself from one. 

Types of Phishing

#1. Cloning

Here, the attacker duplicates a previous legit email but then inserts a malicious link. Such links typically lead you to a look-alike website, which the attacker will use to harvest your personal information. In the new email, they might then say something like, “please use the updated link.” This attack leverages your familiarity with the previous communication, which makes you less suspicious (hence more vulnerable). 

#2. Typosquatting

Typosquatting is taking advantage of people who do not read domain names carefully. You’d be a victim if you saw ‘’ and assumed that’s Coinbase. 

#3. Impersonation 

An attacker can claim to be another (usually famous) person to make it easier for them to convince you to do something. For instance, they’ll claim to be an executive of a certain crypto exchange and that they have a flash sale – tokens going for discounted prices. If other attack variables such as timing, the storyline, and so on are logical, it becomes easy to lure unsuspecting people to the bait.

#4. Malicious/ fake apps

Malicious apps are used to track users, steal their private information, and even steal their money. Most of such apps pose as ‘utility apps’ that you can use to free up disk space, clear junk, lock files, and perform other maintenance activities on your digital devices. The reality, though, is that these apps don’t even do what they claim to do in the first place. Phone and software companies try to detect and block these apps, but scammers are always devising new ways to stay ahead.

#5. Spear phishing

This strategy targets a specific individual or organization. Unlike general phishing, spear-phishing attacks are very precise, and the attacker will usually have all the information about their victim. Due to this, these attacks can be persuasive. 

Phishing and Cryptocurrencies Scams

Phishing attacks on crypto users are prevalent. A Google search on ‘phishing and cryptocurrencies’ will show you countless pages of results listing recent phishing scams. The following are some of the common phishing tactics attackers use against crypto users:

#1. Look-alike websites – Also known as typosquatting, this attack involves redirecting users to websites with mistyped URLs. For instance, a phisher’s website will read ‘bÏ’, which can be easily mistaken for ‘’ 

#2. Fake donations/ crowdfunding campaigns – Cryptocurrencies are increasingly being adopted to facilitate donations, especially where governments would otherwise restrict such donations. Crypto donations are also popular in global fund drives because they allow donors from anywhere to send their contributions. Scammers have abused the crowdfunding potential of cryptocurrency to fleece unsuspecting internet users. Around July, a hacker gained access to prominent persons’ Twitter accounts and started soliciting users to send Bitcoin. One tweet from Bill Gates’ account read “You send $1,000; I send you back $2,000.’

#3. Fake QR codes – When sending crypto, scanning a QR code is usually way more convenient than copy-pasting or manually typing in the address. Similarly, when sharing your address with a sender, it’s easier to send them a QR code than the alphanumeric address. Most crypto wallets have inbuilt QR code generators, but some don’t. The number of fake standalone QR code generators that have been developed supposedly to fill this gap is overwhelming. Cointelegraph reports that four out of five results for Google searches on ‘Bitcoin QR code generator’ return fake apps. If you generate a wallet address with a fake QR code generator, you’ll be playing right into the hands of a phisher.

How to Protect Yourself

Phishing is real, and it’s not going anywhere. As such, we can only do our best to protect ourselves. Understanding the various forms of attacks helps in spotting them. These guidelines will greatly help to protect you from phishing attacks. 

#1. Exercise caution, always

Being wary is the best defense you can have. It’s hard to be alert all the time. However, if you were not expecting that email with that subject from that person, do a double check again to make sure you’re not being trapped.

#2. Access websites directly

This might be inconvenient, but it’s best that you type website addresses instead of clicking links. In some advanced forms of typosquatting, a malicious link can lead you to a website with the same domain name as its legitimate twin. The technique is called punycode, and it takes advantage of ASCII characters from different languages. 

#3. Check links before clicking 

If you just have to click that link, hover your mouse pointer over the link (long press if viewing on Android) to see the full link before proceeding. 

#4. Don’t ignore suspicious items

If the email or website has a typo or something just feels off, don’t ignore it. Scammers seem to tend not to proofread their work – typos are quite common and can be an indicator of a phishing attack.

Final Thoughts

Phishing is one of the most common cyberattacks. It’s proven quite effective considering that it doesn’t require any special skills. We’ve established that there are several forms of the attack, including some specifically targeting cryptocurrency users. The best defense against phishing is to stay alert all the time. Also, double-checking web addresses, confirming links, and probing suspicious-looking emails comes in handy. 

Crypto Daily Topic Cryptocurrencies

What Exactly Are Dark Pools? 

The finance world has always been filled with curiosities. Money is a touchy subject, and people often go to extraordinary lengths to protect their positions. Out of this has emerged the concept of ‘dark pools,’ which are financial trading hubs taking place away from the public’s eye. 

What are dark pools? How did they come to be? We’ll be looking at that and more in this article. Importantly, we’ll see the role they’ve played in the crypto space, if any. 

Understanding a Dark Pool

A dark pool is a privately arranged venue/hub/platform where financial instruments’ trading is held. Dark pools are in direct contrast with public exchange markets, which are heavily regulated and have a lot of media visibility. A dark pool has no publicly available order book, nor is its trades publicly visible (or are only visible once executed). 

Dark pools’ liquidity is known as dark pool liquidity. Most dark pool trading is executed in block trades. A block trade is a particularly large volume trade, usually at a predetermined price. 

Dark pools hark back to the 80s when institutional investors used them to exchange huge amounts of securities. Dark pools allow traders to place large orders without letting them known their intentions first. This is important because the public knowing their intentions to buy or sell large volumes of a security could negatively impact the trade before they can get to carry it out. 

Dark pools have become a substantial part of global financial markets, and we’ll be debunking them further in this article, together with their application in cryptocurrency. 

Cryptocurrency dark pools

UK-based crypto exchange Kraken pioneered dark pools crypto in 2016. “Dark pool trading allows for orders to be placed out of sight so that traders can make large buy or sell orders (minimum of 50 bitcoin or 2500 ether) without revealing their sentiment to other traders. Advantages include reduced market impact and better price for large blocks,” said Joseph Powell, CEO. 

A few countries around the world have been friendly to the concept of crypto dark pools. This is saying something when you consider the crime reputation that cryptocurrency has. Bermudan digital asset exchange Omega One’s Dark Pool was awarded the country’s first-ever crypto exchange license: “We are now on-boarding select institutions, liquidity venues, and market makers with a trading volume of $10 million a month.”

Why Use Dark Pools? 

Let’s say an institutional investor, A, believes Bitcoin’s price will soon take a hit. They decide to sell $1 million worth of BTC to ride out the fall in price safely. But two problems are impeding this proposition. First off, selling such a large amount of BTC on any open exchange will impact the market one way or another. They don’t want to cause such a large ripple in the market. 

The other problem is, no buyers are willing to purchase such a huge amount of Bitcoin, at least immediately. So they will have to break down the sale into the more manageable pieces of $50,000 at a time, 20 times. 

This means: 

  • They will incur charges on all the 20 sales. 
  • The sale will affect the market and probably send retail investors offloading as well, causing the price to crash.
  • The sale could end up being more costly – it’s highly likely they will not be able to sell each BTC at the going price, but lower. 

If the institutional investor used a dark pool, they’d save themselves from the above unfortunate scenarios. Selling on an open market would expose them to potential loss and send a negative signal to the market. 

Advantages of using a dark pool

There are several benefits of taking it dark: 

  • Avoid impact on market sentiment: Traders who wish to make large trades can do so in a way that they do not send signals to the market.
  • Better prices: In a dark pool, both seller and buyer get better prices than they would in the open market. The buyer buys low, while the seller sells high.
  • No slippage: The majority of trades in dark pools are usually block-trades set at predetermined prices. Traders know they can execute the trade at the expected price.

Controversies surrounding dark pools 

  • Conflict of interest: Seeing as the order book is not publicly available, a trader has no way of knowing that a trade was completed at the best possible price. If the entity facilitating the trade has a conflict of interest, they can potentially obfuscate the real price.
  • Negative effect on markets: If a large part of trading is happening in dark pools, the real market price may not reflect reality. The finance market relies on the free flow of information, and if a huge part of trading is happening under the radar, the actual market is disadvantaged.
  • Vulnerability to predatory practices: Dark pools are perhaps the best playing ground for predatory practices. In particular, high-frequency traders who may have access to order book data can unfairly exploit unsuspecting traders. 
  • Enabling pinging: Dark pools enable pinging, a questionable practice that involves sending many small orders to obscure a big hidden order. Pinging is used to identify liquidity in order books and can have an unhealthy effect on the market.
  • Decreasing popularity: Dark pools are not growing more popular – quite the opposite. This means institutional investors might be moving away from the practice. When their existence is less compelling, their overall effect on the broader market is harmful.

Decentralized dark pools

Just like dark pools in the traditional finance market, dark cryptocurrency pools are available on some exchanges, as we previously mentioned. Unlike traditional dark pools, decentralized dark pools enjoy better and more secure verification. Such verification is powered by state-of-the-art cryptography. Also, crypto dark pools are run by automatic protocols that help maintain fairness for all participants and less likely to be manipulated by unscrupulous players. Zero-knowledge proofs and other cryptographic technologies ensure a high degree of transparency and integrity. 

If a trade involves more than one blockchain, it can be seen through by cross-chain atomic swaps that are not only cheaper but also remove the bloat associated with third-party intermediaries. Dark pools can also help in illiquid cryptomarkets by enabling traders to conduct high-volume trades without slippage. While a huge order would send a negative signal in an open illiquid market, it wouldn’t have the same effect in a dark pool. 

So far, dark pools haven’t had a major effect on the crypto markets due to the relative lack of institutional traders in the space. Whether this will change in the future is anyone’s guess. 

Closing Thoughts

Courtesy of their secretive nature, dark pools have been a source of controversy throughout their existence. When a part of investing and trading activity occurs underground, it can never be desirable on any market. However, with decentralized dark pools, we could potentially see a shift in not just how they’re perceived but their usefulness to various players. Open source approaches to dark pools could ensure that everyone uses the same rule book, alleviating much of the associated risk. 

Crypto Daily Topic Cryptocurrencies

How to Buy Ethereum Using PayPal

For years now, Ethereum has been the most sought-after cryptocurrency right after Bitcoin. And in recent months, the coin seems to be on an unstoppable rally – which has only doubled down after the news that the long-awaited Eth2, an upgrade to the network, will be rolled out in December. At the time of writing, ETH is trading at over $500, according to Coinmarketcap. The currency has been oscillating within that range, which is a big deal considering the coin began the year with a tepid $130 in value. 

This is to say that Ethereum is more relevant than ever and will continue to command a huge share of the crypto market, at least in the foreseeable future. It’s also to say that demand for the currency is quite high at this point. 

For investors who wish to grab a piece of the Ethereum pie, what are their options to do so? Given that PayPal is one of the most widely used payment options, is it possible in 2020 to purchase Ethereum with it? 

This article set out to establish that. What we discovered is that PayPal is not supported in many crypto exchanges. However, you’re in luck because there are 2 or 3 places where you can buy ETH with PayPal, including on PayPal itself! 

Best Places to Buy Ethereum Using PayPal

#1. LocalCryptos

LocalCryptos is a peer-to-peer (P2P) cryptocurrency exchange that allows users to buy and sell crypto. The platform has tens of thousands of traders exchanging crypto with each other via various payment methods – PayPal included. 

When you purchase Ethereum via PayPal on LocalCryptos, you’re doing so directly from another user. The process is pretty straightforward. You’ll need to: 

  • Select a Buy With PayPal offer (posted by another user)
  • Enter the quantity of ETH you’d like to buy 

LocalCryptos requires the seller to put the ETH in an escrow before they can receive payment. When they do this, you can then transfer money with PayPal. You’ll receive the ETH after payment confirmation. The crypto-buying process on LocalCryptos is safe, beginner-friendly, and convenient. 

#2. eToro

eToro is a trading platform previously famous for CFD trading but has become one of the most reliable places to buy crypto in recent years. eToro allows buyers to purchase several cryptocurrencies with PayPal, including Ethereum, Ethereum Classic, Bitcoin, Bitcoin Cash, Binance Coin, Cardano, Litecoin, Dash, and more.

The platform even provides a dedicated eToro wallet, though not for every crypto (yet). However, at least it supports Ethereum. This makes eToro beginner-friendly to buy Ethereum. However, let the wallet be a placeholder as you look for a more solid and secure wallet. It’s good practice not to let your crypto hang around any exchange for too long since exchanges are susceptible to all kinds of online vulnerabilities. For some of the best wallet options in the market, see here

#3. PayPal

In highly welcome news, PayPal announced in October that they would start supporting the buying, selling, and holding of Ethereum, Bitcoin, Bitcoin Cash, and Litecoin on their platform. They also signaled support for the currency as a funding source for millions of merchants worldwide. 

There’s a caveat, though: this functionality will first be only available to eligible US accounts. Ethereum enthusiasts in other countries who use PayPal may have to wait a bit longer. 

Cost and Safety Implications

Buying Ethereum with PayPal is generally safe, especially since you can always initiate a chargeback if the seller doesn’t release ETH. However, be sure to use the function only if necessary; otherwise, overstretching it could get your account blacklisted by PayPal. 

Final Thoughts

Ethereum is currently roaring, and by all indications – it will continue to do so in coming months (and most likely years). With the impending protocol upgrade and an already incredibly bullish run, the currency shows no signs of stopping. With PayPal being one of the ‘mainstream’ payment methods today, it’s gratifying to know you can purchase the currency using the platform. 

Crypto Daily Topic Cryptocurrencies

How to Buy Bitcoin with a Credit/Debit Card

Credit/debit cards have enabled us to make instant, convenient, and hassle-free payments since the founding of the Diners Club in the 1950s, and today, this possibility has been extended to the purchase of Bitcoin. Buying Bitcoin with a credit card is among the easiest ways to get yourself some crypto. 

But where can you buy Bitcoin using a credit card? And is it safe? What about transaction costs? We’ll look at these concerns and more in this article.

How You Can Buy BTC with a Credit Card

When it comes to buying BTC with a credit card, there are two main possibilities. 

i) Direct payment – This is the least confusing option. With direct payments, you go to the exchange’s website, make your purchase and use the Visa/MasterCard/AmericanExpress (or just the cards that are available) option. The checkout process will be similar to buying anything else with your credit card. 

ii) Through a payment gateway/ payment service provider – For reasons such as cost savings, bonuses, and offers, you might want to pay through a payment gateway or money transfer service provider such as PayPal and Skrill. If you’re new to buying BTC, or if you’re buying just a few coins, this long route might not make much sense. However, if you are a high-stake investor, you might want to take advantage of any slight margins, although with increased inconvenience.

To buy Bitcoin with your credit card through a payment gateway, you’ll need to load your payment gateway’s account with funds first. Then, when checking out from your exchange, you choose to pay with Skrill/PayPal or whichever method you’re using. 

Best Places to Buy BTC with a Credit Card

Most likely, you will be buying Bitcoin from a crypto exchange like Coinbase, Kraken, or eToro. There are other methods, such as buying from individuals, but we’ll be focusing on exchanges.

That said, the following are among the best exchanges where you can Bitcoin using your credit card. These exchanges have been selected based on ease of use, buying limit, security, and transaction costs. The exchanges are not ranked in any particular order.

#1. Coinmama

Purchases made with credit cards usually have various limits to mitigate fraud. Coinmana offers among the highest purchase limits. The exchange is also available globally, which makes it a convenient option wherever you are. Additionally, the exchange has a reputation when it comes to reliability and trust among its user community.

When buying BTC on Coinmama, you will need to register/ sign in and create a crypto wallet on the platform. Then, when you get to the step of selecting a payment method, you’ll be required to choose from either Visa or MasterCard. Card payments are instant and attract a 5% processing fee. This cost is a bit high compared to going through a payment provider such as Skrill (Skrill charges 2.5% of the transaction value). Nevertheless, the experience is swift.

#2. Coinbase

Coinbase allows you to buy up to $150 or €150 worth of BTC per week. Debit card payments are accepted in all countries where Coinbase operates. However, you cannot buy BTC with a credit card if you reside in the US, Canada, Australia, and anywhere within Europe. 

If you want to buy BTC on Coinbase using your card, you will need to set up your user profile and link your credit/debit card. Later on, when you are actually buying BTC, you will select your already-added card at checkout. Transactions cost 3.99% regardless of the amount, and settlement is instant. The buying experience on Coinbase is also smooth.

#3. Bitpanda

Bitpanda is another reputable exchange where you can buy BTC using your card. First, you will need a Bitpanda account to buy BTC. Once you log in to the account, you can navigate to the ‘Buy’ tab on the menu. Bitpanda allows you to add the payment method during checkout, so you don’t have to link your card in advance. 

After selecting ‘Buy,’ you will see large buttons with the names of some of the major cryptos and other buttons for payment methods. You will need to make the appropriate selections to proceed. If you pay by card, both credit and debit cards are supported, but it must be Visa/MasterCard. Once you have selected your card, the rest of the process is easy to complete. 

Bitpanda offers one of the most secure card payment options. To make a card payment for crypto purchases on this exchange, your card must have 3-D Secure verification enabled. Note that there’s nothing you can do if your card does not support this protocol (other than look for another exchange).

#4. is one of the earliest cryptocurrency exchanges to exist. Even so, it has never moved its operations beyond Europe, some countries in South America, and some states in the US. It is still a great place to buy BTC using your card if you are from any of these regions boasts of unmatched security and trust. The exchange is registered in the US as a Money Services Business. In the UK, it is incorporated as a private limited company. is also PCI-DSS compliant. PCI-DSS is the global security standard for card payment providers. Due to the company’s focus on security and compliance, user experience is adversely affected. For instance, transaction verifications can take up to 30 minutes. 

Security/ Safety

The security and safety of your credit/debit card are paramount. Generally, buying crypto using cards is not riskier than using your card for your regular shopping. However, it is important to do the basic checks to ensure that you are dealing with legitimate and reputable exchanges. 

When using your credit card to buy Bitcoin, you will inevitably share your details with your exchange. Thus, it is essential to ensure that you’re dealing with a legitimate exchange, and two, the exchange is reputable. If you leave your card details with a shady exchange, how can you be sure that your card details will not be used for fraudulent purchases?

Final Thoughts

Credit/debit cards are a relatively easy and convenient option for paying for your Bitcoin purchases. This payment option is also supported by most major exchanges like Coinbase, Coinmama, and Bitpanda. Additionally, paying for BTC with your card is safe, as long as you’re dealing with reputable exchanges. On the downside, cards have restrictive transaction limits, which may disadvantage large buyers. Also, some exchanges do not accept credit cards from certain countries. Whichever the case, you can always find an option among the many. 

Crypto Daily Topic Forex Daily Topic Forex Videos

Position Sizing Part 1 Drawdown – Why You Keep Blowing Your Account!

Position Sizing. Drawdown- The dark side of Trade


This video will be dedicated to explaining the relation between performance and drawdown.  It is an essential topic since most of the trading community ignores the fact that the drawdown of a trading strategy or system is not an independent value. It is position sizing dependent. Furthermore, the profitability of a trading system is also dependent on the size of the position.

Imagine several investors trying to choose a copy-trading service, and you need to rank the potential candidates. Which parameter do you think most of them would choose to grade the quality of that group of systems?  Total returns? Average trade return? Percent winners? Drawdowns?

The majority would rank them by total returns, without any further analysis on how the returns were obtained. This could lead them to select the worst candidate instead. 

The fact is that returns and risks are interlinked in all investments.  You cannot increment returns without increasing the risk. Consequently, traders and investors must analyze both simultaneously.

Let’s look at the characteristics of returns vs. drawdown using a simple position sizing method applied to the trades of one year using a sound system such as our Live Signals Service. 

Let’s see first how this system behaves using just one mini-lot size, which corresponds to $1 per pip gained or lost. 

The figure corresponds to a trader having $1,000 initial capital, using a constant one micro-lot trade. To compute the maximum drawdown, we created 10,000 synthetic account paths using Monte Carlo resampling. The corresponding max drawdown distribution is shown below.

The Average Max Drawdown is 1.94 % with a very tiny possibility a 8% drawdown.

Let’s see how this system performs under increasing lot sizes:

1 mini-lot size

The corresponding drawdown curve  is shown below:

In this case, the average max drawdown goes to 11.77%. But, there is a 30% chance (about one in three) that max drawdown goes to 20%, and in about 2.5% of the occasions, the max drawdown went as high as 40%.

Let’s use now one lot

And the corresponding max drawdown curve is

In this case, the average max drawdown is 40%, but there is a 20% chance of a 65% drawdown and a 5% chance of an 85% drawdown.  40% drawdown is about the limit a usual trader can endure, but inevitably a 65% drawdown would force most traders to stop trading, even when we can see that the system is profitable.

We can see that even using a constant trading size, the drawdown grows with the position size. Of course, we can observe that the returns also grow. Furthermore, profits grow at a much higher rate than risk.  From the preceding examples, any astute observer can notice that moving from one micro-lot to one lot, 1-year returns went from $1,158 to $115,840, a 100X increment, while the drawdown moved from about 2% to 40%, a 20X increase.  

Therefore, the theory behind position sizing is aimed at optimizing both return and drawdown. Of course, there is no single solution to this problem. The solution must fit the particular psychology of the trader. 

Crypto Daily Topic Forex Daily Topic Position-sizing Guide

Forex Academy’s Guide to Position Size

After completing our series on position size, we would like to summarize what we have learned and make conclusions.

Starting this video series, we have understood that position size is the most crucial factor in trading. On Position Size: The most crucial factor in trading, we learned that deciding the position’s size is not intuitive. In an experiment made by Ralf Vince using forty PHDs with a system with 60 percent winners, only two ended up making money. Thus, if even PHDs couldn’t making money on a profitable strategy, Why do you think you’re going to do it right? You need to follow a set of rules not to fool yourself.

The Golden rules of trading

The trading environment seems simple, but it’s tough. You have total freedom to choose entries, exits, and the size of your trade. Some brokers even offer you up to 500x leverage. But you’re not free from yourself and your psychological weakness, Therefore, you need to set up a set of rules to stop the market to play with you. In “The golden rules of Forex trading” III, and III, we propose specific rules it is advisable to follow to succeed in trading. These include never open a position without knowing your dollar risk, defining your profits in terms of reward/risk factors, and limit your losses to less than 1R, a risk unit. We also advise to keep a record of trades and identify your strategy’s basic stats: Average profit, the standard deviation of the profits, and drawdown.

The dark side of the trade

In our video, The Dark Side of Trade, we explain the relation between position size, results, and drawdown, showing that position size plays a vital role in both aspects. In the video, We show that while results grow geometrically ( 100x), drawdown increase arithmetically, 10X. But the lesson here is that the size of the position must be chosen with the drawdown in mind. That is, we should choose a position size so that the max drawdown could be limited to a desirable size. 

The Gamblers Fallacy 

on Position Size – The Gamblers Fallacy, we explain why it is wise to consider position sizing independently of the previous results. We explain that a new trading result does not usually depend on prior results; thus, modulating the trade size, such as do Martingale systems, is not only useless but dangerous because winning or losing streak ends are unpredictable.

The Advantage!

Even when most retail traders don’t realize it, the “how much” question is the advantage or critical factor to achieve your trading goals because the size of the position defines both the trading results and the risk, or max drawdown, in your trading portfolio. We mention in Position Sizing III- The Advantage that in 1991 the Financial Analyst Journal published a study on the performance of 82 portfolio managers over a 10-year period. The conclusion was that 90% of their portfolio differences were due to “asset allocation,” a nice word for “investment size.”

In this article, we also presented the simplified MCP model to compute the right lots to trade as:

M = C/P, where M is the number of lots, C is the (Cash at) Risk, and P is the Pip distance from entry to stop-loss. The cash will depend on the percent you’re willing to risk and the cash available in your trading account. 

Equity Calculation Models

In our next video of this series, Position Size IV – Equity Calculation Models, We explain several models to calculate several simultaneous positions: 

  • The Core Supply Model, in which you determine the nest trade’s size using the remaining cash as the basis for computing C.  
  • The Balanced Total Supply Model, in which C is determined by the remaining cash plus all the profits secured by a stop-loss.
  • The Total Supply Model, in which the available cash is computed by adding all open position’s gains and losses plus the remaining cash.
  • The Boosted Supply Model uses two pockets: the Conservative Money Pocket and the Boosted Monet Pocket. 

The Percent Risk Model

The Percent Risk Mode is the basic position sizing model, barring the constant size model. on Position Sizing Part 5, we analyze how various equity curves arise when using different percent risk sizes and how drawdown changes with risk. Finally, we presented an example using 2.5 percent risk for an average max drawdown of 21 percent.

The Kelly Criterion

Our next station is  The Kelly Criterion. The linked article explains how the Kelly Criterion is used to find the optimal bet amount to achieve maximal growth, based on the winner’s percentage and the Reward/risk ratio. The Kelly criterion was meant for constant reward bets, and as such, it cannot be used in trading, but it tells us the limit above which the size of the position increases the risk while decreases the profits. We should be aware of that limit considering that most retail Forex traders trade beyond it and blow out their accounts miserably.

Optimal fixed fraction trading

Optimal fixed fraction trading, Optimal f for short, is the adaptation of the Kelly criterion to the financial markets. The optimal f methodology was developed by Ralf Vince. In Position Size VII: Optimal Fixed Fraction Trading, we explain the method and give the Python code to find the Optimal fraction of a stream of trading results. The key idea behind the code is that the optimal fraction is the one that generates the maximal growth factor on a set of trades. That is, Opt F delivers the maximal geometric mean of the trading results.

Optimal f properties

But nothing in life seems easy. Optimal f has dark corners that we should be aware of. In Position size VIII – Optimal F Revisited, we analyze the properties of this positioning methodology. We understood that, due to the trading results’ random nature, we should find a safer way to find the optimal fraction to trade. This article presented a safer way to compute it using Monte Carlo resampling and take the minimum value as optimal f. This way, the risk of ruin is minimized while preserving the strong growth factor Opt f provides.

Market’s money

Traders define their recent trading gains as “market’s money. A clever way to profit from the usual winning streaks is to use the market’s money to increase the position size in a planned manner. In Position Sizing IX: Improving the Percent Risk Model-Playing with market’s money,

we present the N-Step Up position sizing strategy, an innovative algorithm that adds the gains obtained in previous trades to boost the profits. This way, it could increase the profitability by 10X with a max drawdown increase of roughly 2.8X, from 8.02% to 22.5%. This article analyzes four models: one, two, and three steps with 100% reinvestment and three steps with 50% reinvestment.

Scaling in and out

Our next section, Position sizing X: Scaling-in and scaling-out techniques, is dedicated to scaling in and out methods. Scaling in and out are techniques to increase the position size while maintaining the risk at bay. They work best with trending markets, for instance, the current crypto and gold markets. The main idea is to use the market’s money to add to our current position while trailing our stops. 

System Quality and Max Position Size

System quality has a profound influence over the risk, and, hence, over the maximum position size, a trader can take. In Position Sizing XI- System Quality and Max Position Size Part I and part II, we presented a study on how the trading strategy’s quality influences the maximum position size a trader should take. To accomplish this, we created nine systems with the same percentage of winners, 50 percent. We used Van K Tharp SQN formula to compute their quality and adjusted the reward to risk on each system to create nine variations with SQN from 1 to 5 in 0.5 steps. 

Then, since traders have different risk limits, we defined as ruin, a max drawdown below ten preset levels from 5 to 50 in 5-step.   

 Our procedure was to create a Monte Carlo resampling of the synthetic results, which simulated 10 thousand years of trading history on each system.  

Since a trading strategy or system is a mix between the trading logic and the trader’s discipline and experience, we can estimate that the overall outcome results from the interaction of the logic and the treader. Thus, we can accurately associate a lower SQN with lowing experienced traders and higher SQN to more professional traders. The study’s concussions suggest a limit of 0.5 percent risk on newbies, whereas more experienced traders could boost their trading risk to an overall 4.5%.

Two-tier Optimal f Positioning

After this journey, we have understood that Using Ralf Vince’s optimal f position sizing method means maximally growing a portfolio. Still, the risk of a 95% drawdown makes it unbearable for any human being. Only non-sentient robots can withstand such heavy drops. In Position sizing XII- Two-tier Optimal f, we analyzed the growth speed of a 1% risk size, and we compare it with the Optimal f. We were interested in the average time to reach a 10X final capital. We saw that on a system with 65.5% winners and a profit factor of 2 ( average Reward/risk ratio of 1.1), using 1 percent risk, it would take650 days ( about two years) on average, whereas, using optimal f sizes, this growth was reached in 42 days, less than one-tenth of the time!.

The two-tier Optimal f positioning method uses the boosted supply model, and is a compromise between maximal growth and risk. The main objectives were to preserve the initial capital while maintaining the Optimal f method’s growth characteristics as much as possible.

The two-tier optimal f creates two pockets in the trading account. 

  1. The first pocket, representing 25% of the total trading capital, will be employed for the optimal f method. The rest, 75%, will use the conservative model of the 1 percent model.
  2. After a determined goal ( 2X, 5X, 10X, 20X), the account is rebalanced and re-split to begin a new cycle.

In Position sizing XII- Two-tier Optimal f part II, we presented the Python code to accurately test the approach using Monte Carlo resampling, creating 10,000 years of trading history.

 The results obtained proved that this methodology preserved the initial capital. This feat is quite significant because it shows the trader will dispose of unlimited trials without blowing out his account. Since the odds of ending in the lowest possible scenario are very low, there is almost the certainty of extremely fast growths.

Finally, we also analyzed other mixes in the two-tier model, using Optf / 10, Optf/5, and Optf/2 instead of 1%, with goals of 10X growth to rebalance. These showed extraordinary results as well while preserving the initial capital. B.


The trader should also consider the drawdowns involved before deciding which strategy best fit his tastes because, while this methodology lowers it, in some cases, it goes, on average, beyond 60%. We have found that the best balance between growth and risk was the combination of 75% Optf/10 and 25% Optf, which gave an average final capital of $21.775 million with an average drawdown of 37%.

To profit from this methodology, the trader must ensure the long-term profitability of his system. Secondly, he must perform a Monte Carlo analysis to find the lowest optimal f value. Finally, he should create an adequate spreadsheet to follow the plan.

Final words

After reading all this, we hope you know the importance of position sizing for your success goals as a trader.

One caveat: We have left some topics out, such as martingale methods, which many traders use and are the main cause of account blown out. Please adhere to the philosophy that position sizing should be thought of as a tool to reach your goals and handle your risk and drawdowns. As shown in The Dark Side of the trade, position sizing should be separated from the previous trades’ results.

Crypto Daily Topic

Who is Satoshi Nakamoto (Creator of Bitcoin)? 

There’s no bigger mystery in the crypto world than the one of Bitcoin’s creator’s true identity. Satoshi Nakamoto is the pseudonym used by Bitcoin’s creator(s). More than 10 years after Bitcoin, Satoshi’s identity remains shrouded in mystery. 

The Bitcoin community is yet even to know if Satoshi is one person or a group of people. What they know is that in 2008, Satoshi published a paper: “Bitcoin: A Peer-to-Peer Electronic Cash System,” that completely changed finance as we know it. 

Nevertheless, that hasn’t stopped an active search for the mysterious figure. Several Satoshi ‘suspects’ have been unveiled, and not without controversy. Let’s look at some of the people widely theorized to be Satoshi. 

#1. Dorian Nakamoto

Dorian Prentice Satoshi Nakamoto is a Japanese-American engineer suspected of being Satoshi by Newsweek writer Leah McGrath Goodman back in 2014. At the time, McGrath published an ‘expose’: “The Face Behind Bitcoin.” McGrath had established that Nakamoto had previously worked as a systems engineer on classified projects for the US government and a computer engineer for financial services companies. 

McGrath said Nakamoto had let slip that he was the founder of Bitcoin. She alleged that during a face-to-face interview with him, he’d said about the currency: “I am no longer involved in that, and I cannot discuss it,” adding, “It’s been turned over to other people. They are in charge of it now. I no longer have any connection.” 

However, when he’d said he’s no longer involved with that, he’d meant his work with classified military projects years ago. Both in The Associated Press and on a Reddit Ask Me Anything, he said that he’d misinterpreted McGrath’s question as being related to that work. 

The “discovery” of Dorian Nakamoto was particularly mired in controversy. The Bitcoin community was not pleased with the “hit-job” type of piece – complete with a picture of his house – that McGrath wrote about him.  

The community also took notice of a message published for the first time in years on Nakamoto’s P2P Foundation site, saying, “I am not Dorian Nakamoto.” 

#2. Adam Back 

Adam Back is the CEO of blockchain company Blockstream. Some sections of the Bitcoin community suspect he’s Satoshi Nakamoto thanks to a YouTube video called “Unmasking Satoshi Nakamoto” Posted by the channel “Barely Sociable.” The video talks about several clues about why Back may be Satoshi Nakamoto. 

One of those reasons is that he was describing the technology underlying Bitcoin as far back as 1998. He also kind of disappeared from the public when Satoshi was actively involved in the project. Barely Sociable also pointed out that both Back and Satoshi use double spacing in their words, and they use British English spelling. The video also mentioned the possibility that Back can always leverage plausible deniability about the claim. After the video was published, Back engaged in a back and forth with Barely Sociable on Twitter. At the time of writing, the YouTube video has 548,592 views on Twitter. 

#3. Wei Dai 

Wei Dai is a computer engineer and cryptographer. He’s the creator of the b-money currency system and a fixture in the digital currency community ecosystem. On August 23, 2008, Satoshi Nakamoto wrote to Dai acknowledging his contribution to Bitcoin:” I was very interested to read your b-money page. I’m getting ready to release a paper that expands on your ideas into a complete working system.” 

Most of the evidence linking Dai to Bitcoin is substantial, though, and there’s no smoking gun evidence to prove that he really is Satoshi. Such evidence is based on the fact that Dai has the ability to create such a project, as well as his intensely private manner that is akin to Satoshi’s.

Also, if Dai were Satoshi, that means he’d have to have been playing a “double agent” role writing to himself and communicating with himself. This is highly unlikely.

#4. Hal Finney 

Hal Finney is an American cryptography pioneer who died of ALS in 2014. In the same year, Forbes journalist Andy Greenberg wrote an article on Hal Finney, highlighting that he was not only Dorian Nakamoto’s neighbor, but also a pioneer in the cypherpunk and cryptography space. Not only that, Finney had been the first-ever recipient of a BTC transaction from Satoshi. 

Greenberg then worked with writing analysis firm Juola & Associates and asked them to compare Finney’s writing with that of Satoshi. Apparently, they found his writing was closer to Satoshi’s than other candidates submitted to Newsweek, Fast Company, and the New Yorker. But they also found Satoshi’s emails to Finney more closely resembled the style in Bitcoin’s original white paper as compared to Finney’s emails. 

Greenberg theorized that Finney could have been a ghostwriter for Nakamoto or has used his neighbor Dorian Nakamoto as cover. Finney denied being Satoshi. After Greenberg met Finney and saw the email exchanges between them and his and Bitcoin’s wallet history, he concluded that he was telling the truth. 

#5. Craig Wright 

Craig Wright is an Australian computer scientist and techpreneur. On Dec 8, 2015, Wired ran an article by Andy Greenberg and Gwern Branwen describing an Australian academician called Craig Stephen Wright who “either invented bitcoin or is a brilliant hoaxer who very badly wants us to believe he did.” 

The same day, Gizmodo published a story featuring documents allegedly obtained by a hacker who breached or “breached” Wright’s email accounts, claiming that Satoshi Nakamoto was a joint pseudonym for Craig Wright and his longtime friend, Dave Kleiman. Kleiman was a computer forensics expert who died in mysterious circumstances in 2013.

Following the article, Wright quickly disappeared from the web for several months only to resurface on May 2, 2016, and declare that he was Bitcoin’s creator. He also wrote an article apologizing for taking the original private approach and a refusal to provide proof of access to one of Bitcoin’s earliest keys. Several publications have rubbished the claims that Wright is Satoshi. He’s also currently embroiled in litigation with Dave Kleiman’s estate. The lawsuit claims Wright defrauded Kleiman of millions of worth of Bitcoin. 

#6. Nick Szabo 

Nick Szabo is a computer scientist, legal and cryptography scholar who’s widely credited for pioneering the concept of smart contracts in the ’90s. In 2008, he developed a decentralized currency – Bit Gold, which he described as “a protocol whereby unforgeable costly bits could be created online with minimal dependence on trusted third parties.” This is in agreement with Bitcoin, in which bits produced by a distributed network of computers worldwide independently verify transactions.

Writer Dominic Frisby floated the idea that Nick Szabo is Satoshi in his book “Bitcoin: The Future of Money?” Frisby talked to a stylometric analyst who apparently concluded that Szabo’s writing style is similar to Satoshi’s. His other ‘proof’ was that both Szabo and Satoshi reference legendary Austrian economist Carl Menger. Frisby also established Szabo had worked for DigiCash, a cryptographic electric money attempt in the early ’90s. According to Frisby, all these clues alluded to Szabo being Satoshi. 

However, Szabo has repeatedly refuted the idea that he’s Satoshi, saying to Frisby in one of their correspondences: “Thanks for letting me know. I’m afraid you got it wrong doxing me a Satoshi, but I’m used to it.” 

Final Thoughts

The fervor behind Bitcoin’s creator is understandable. After all, the currency is not just digital money – it’s a movement – one that has shaken the very core of finance. Some of the people mentioned in the list are known for their pioneering work that helped lay the foundation of Bitcoin. Others have been active in the currency’s development from the beginning, while others appear to ride on the coin’s popularity for whatever ends. But if you think about it, the mystery surrounding Bitcoin is partly behind its wild success and possibly its ‘untouchable’ status. The Bitcoin community and, indeed, the world should be happy that we have Bitcoin and not be so fixated on its creator. 

Crypto Daily Topic Forex Daily Topic

How to Trade Forex Anonymously with Bitcoin

Anonymous trading used to be a reserve for high-profile investors. But with the increasing acceptance of crypto in forex trading, anyone can trade anonymously now. There are both advantages and limitations to trading anonymously. If you choose to trade forex anonymously, you could use Bitcoin or any altcoin accepted by your broker. 

In this article, we’ll look at what it means to trade anonymously, why you would do it, and, most importantly, how to use Bitcoin in this endeavor.

KYC-Based vs. Anonymous Forex Trading

Unlike crypto trading, forex investment is a highly-regulated industry. For this reason, regulators require forex brokers to conduct extensive know-your-customer (KYC) processes before allowing traders in. Traditionally, exchanges have had no provision for anonymity. However, over time, many have switched to anonymous/hybrid trading practices. 

So, what is anonymous trading? Anonymous trading happens when investors choose to conceal their identity, although their trading activity remains visible in the order book. Usually, an investor will choose between trading on an anonymous (national) exchange or opt for the more private dark pools. 

Anonymous brokerage firms are still regulated and thus do not provide complete anonymity – regulators can still access personal information about a particular trader and their activity. On the other hand, dark pools are private trading platforms that are generally out of the investing public’s reach. They can be registered and operate legally, like conventional brokerages. 

Whether you’re trading in an open brokerage or a dark pool, crypto is particularly useful in keeping transactions identityless. 

With that, let’s find out why you would consider trading anonymously. 

Why Trade Forex Anonymously?

Motivations for trading anonymously may differ slightly between investors. However, the following are common reasons. 

  • Protecting identity – For personal reasons, you might opt to remain an unknown investor on the market. Sometimes one just desires privacy – be it to circumvent some restrictions, keep away stalkers, etc.
  • Protecting your strategy – If you’re a particularly savvy trader, your tricks will always be at risk of being copied. But if you trade with your identity concealed, you’re making it difficult for them to join the dots that make up your strategy. 
  • To conceal your intention – Crypto markets are sentimental, and if traders see you buying or selling in large volumes, prices can move, sometimes to your disadvantage. In such a case, buying or selling anonymously allows speculation to shape the course of price movements.

Using Bitcoin to Trade Forex Anonymously 

It’s very possible to trade forex using crypto. And while you can use any crypto to trade forex (as long as your broker allows it), Bitcoin has some advantages. Obviously, the main one is its wide acceptability. BTC’s volatility also makes it a suitable currency for investment. That said, this is how you can use Bitcoin to trade forex. 

#1. Get Bitcoin – Naturally, the first step is to acquire Bitcoin. For this, you will need to visit an exchange (not a forex exchange, though). Familiarize yourself with the likes of Coinbase, Binance, and Changelly. 

#2. Find a good broker – Not all forex brokers accept Bitcoin. Those that do may be referred to as Bitcoin deposit forex brokers. 

#3: Deposit Bitcoin with the broker and provide them with the finer details of the trade they should execute.

Of course, this is a high-level overview of the process. There are intricacies involved, such as how to evaluate brokers and the risks and the benefits of using Bitcoin to trade crypto that you need to be aware of. Let’s take a look at these below: 

Top 10 Bitcoin Deposit Forex Brokers

The list of Bitcoin deposit forex brokers is growing by the day. Some of the truly tried-and-tested include the following. Links go to a full review of the broker, where available.

#1. IC Markets – This broker is regulated by the Australian Securities and Investments Commission. They accept deposits from $200 in any of the supported currencies, including BTC. With IC Markets, you can get a leverage of up to 500:1. IC Markets allows its customers to trade Forex, Metals, indices, bonds, stocks, and digital currencies.

#2. EagleFX – EagleFX is a beginner-friendly broker with whom you can trade from as low as $10. The platform offers fast account setup and supports over 55 currencies and 32 digital assets. Withdrawals are also pretty fast. With leverage of 1:500, experienced traders can equally benefit from the platform. One of the things making EagleFX stand out is that it appeals to all levels of traders – from beginners to seasoned investors.

#3. CedarFX – CedarFX is a rather interesting option, as it offers zero commission trading with very tight spreads. This broker offers traders six asset classes: digital assets, stocks, indices, metals, futures, and commodities. When trading with CedarFX, the best part is that investors get to choose from a wide array of options. CedarFX’s leverage goes up to 1:500 and also accepts a minimum $10 deposit.

#4. FX Choice – Just like IC Markets, FX Choice is an electronic communication network (ECN). They accept deposits from $100 in a range of crypto and fiat currencies. The broker offers maximum leverage of 200:1 and a variety of Forex pairs, metals, indices, and digital assets.

#5. Longhorn FX – This broker seeks to attract beginner investors with low minimum deposits starting from $10. You can get leverage up to 1:500 to trade with over 55 currency pairs. Withdrawals are fast and easy, which increases its appeal. 

#6. Cryptorocket – This broker allows investors to trade various instruments that include crypto, commodities, stocks, and forex. Leverage of up to 1:500 is possible, and it can be applied to trade some 35 crypto pairs, 55 fiat currency pairs, among other asset classes. The broker features institutional-grade liquidity that guarantees investors competitive pricing. Also, Cryptorocket uses straight-through processing – so you can be sure there will be no price manipulation.

#7. Think Markets – Think Markets is a market maker non-dealing desk kind of broker. You can start with any amount for your deposit, which is encouraging for new users. It is regulated by the Australian Securities and Investments Commission (AU), the Financial Conduct Authority (UK), and the Financial Sector Conduct Authority (ZA). 

#8. FXTM – FXTM is an ECN market maker regulated by the Financial Services Commission of Mauritius. You can start trading from a minimum of $5 (or its equivalent in any of the supported currencies). The broker offers maximum leverage of 1:1000.

#9. HotForex – HotForex is also a market maker that accepts deposits from $5. It is regulated by the Dubai Financial Services Authority and accepts several base currencies. The maximum leverage you can get is 1:1000. 

#10 Hugosway – Hugosway is a well-established broker with offices in Kingstown, St. Vincent and the Grenadines. The broker accepts bank transfers as well as crypto funding while offering its customers fast times on deposits and withdrawals. It allows trading in digital assets, forex, indices, and metals.  The minimum deposit is $50 using credit card and bitcoin, and $10 using Vload.

Benefits of Trading Forex with Bitcoin

  • Increased privacy – When you trade forex using Bitcoin, you don’t need to share your personal financial info.
  • Increased leverage – Many brokerage firms offer leverage to Bitcoin traders. If you know how to use leverage, this can be hugely beneficial.
  • Potentially lower costs – Bitcoin deposit forex brokers are reportedly lowering brokerage fees to attract the new breed of BTC-forex investors.
  • Lower deposits allowed – Again, it appears like Bitcoin deposit forex brokers are using this strategy to attract new investors.
  • Easier cross-border trading – Thanks to Bitcoin being a global currency, you can trade with any broker from anywhere.

Risks of Trading Forex with Crypto

  • Volatility – Since Bitcoin’s prices change continuously, a broker may take advantage of traders by receiving their Bitcoin using the day’s lowest rate and exchanging it at the day’s highest rates. 
  • The leverage temptation – The special leverage used to entice BTC-forex brokers is a great risk to novice investors.
  • Mixing of asset classes – Bitcoin and forex are different asset classes. This use of an ‘intermediary’ currency increases trading complexity and risks.
  • Bitcoin’s inherent risks – Bitcoin, like all cryptos, can be easily stolen if not properly secured. A broker that is licensed and reputable ensures the safety of your funds.

Final Thoughts

Using Bitcoin to trade anonymously offers several benefits. You can take advantage of the higher leverage, lower deposits, lower costs, easier cross-border trading, and so on. There is also an ever-increasing number of Bitcoin deposit forex brokers you can experiment with. However, ensure to employ plenty of caution and thoroughly research brokers so you don’t lose money, and start slow, testing it with minimum deposits and thin trades. Overall, anonymous forex trading with Bitcoin is an exciting endeavor that you can explore – whether you’re a veteran or new to the game. 

Crypto Daily Topic

How to Spot Scams in Decentralized Finance 

If you have been in the crypto industry for more than a minute, you’ve probably heard about decentralized finance (DeFi). It is one of the fastest-growing sectors in the crypto scene, having registered an 1116% increase this year. DeFi grew tremendously, increasing from $674 million in January to $14.185 billion today.

However, the impressive growth also comes with a drawback; DeFi scam projects. 

Thanks to FOMO, scammers are jumping on board the DeFi craze. Blockchain’s properties of being permissionless and decentralized make it easy for anyone to launch fraudulent scams. Scam cases have been so prevalent that prominent entrepreneurs, such as Craig Wright, write off DeFi completely. 

The truth is that not all projects are fake. So, how do you separate the wheat from the chaff? 

More on that later, but first, let’s have a look at the common DeFi scams you should be aware of. 

Common Types of DeFi Scams

Although criminals will come up with all kinds of DeFi scams, they most likely will fall under any of these four categories. 

i) Exit Scams

Exit scams are perhaps the most widespread DeFi scams around. In this case, developers announce a project’s launch and stir the crypto scene with details of the project. Once they have people talking about the project, the criminals disappear with all the funds locked in the protocol. 

Exit scams are usually hard to trace, thanks to the decentralized nature of blockchain. However, in an isolated incident, the world’s largest crypto exchange, Binance, announced in November that it had recovered 99% of the funds stolen from the platform through an exit scam. 

ii)Pump and Dump

Pump and dump schemes are no stranger to the financial world. These schemes are typical in the stock world and are used to boost stock prices on false statements. Crypto pump and dump schemes work similarly. Investors who are in on the scheme start by creating a buzz around a particular DeFi token. They increase the coin’s awareness on different social media channels, which results in a price increase. More unsuspecting investors get on board and buy the tokens, which further increases its price. 

Once the group reaches its target, the initial investors start selling their tokens. The massive sale of the tokens causes a dip in the prices. While the initial investors make a profit, those unconnected to the scam deal with significant losses. 

iii) Admin Imitator

Most of these scams happen on social media platforms such as Twitter, Telegram, and Discord. Usually, DeFi developers use this platform to form a community around their projects. 

Scammers use these platforms to target unsuspecting investors. They pose as one of the members of the support team and convince investors by using the same image and usernames as legitimate members of the development team. 

The scammers then pretend there’s an issue with the project and inform users of the same. They ask the users to send ETH to a specific address or send their private keys to solve the issue. 

iv) Discord Bot Scam

This is a relatively new tactic that scammers are using. The criminals create a bot representative of the DeFi project, which they use to send updates, news, and features updates via a link. Users who click on the link are then redirected to a compromised version of the DeFi platform. These bot scams usually end up in numerous phishing attacks on the users. 

5 Questions You Should Ask to Identify a DeFi Scam

So, how do you tell a legitimate DeFi project from a scam?

Before you invest your money, you need to ensure the project is viable. Finding the answer to these five questions will help you identify a DeFi scam from miles away. 

What’s the Project’s Purpose?

It may seem like an obvious question, especially for an investor who’s new to the crypto scene. However, taking a keen look at the project’s purpose can help you avoid hefty losses. 

DeFi projects are supposed to be innovative, and the legitimate ones usually are. However, most of the upcoming projects have nothing to offer and are only riding on the ongoing craze. 

Before committing your money, have a clear idea of what the project is all about. Does it bring anything new to the crypto scene? Is it an innovative solution? How different is it from its competitors?

Is There a Smart Contract Audit?

Project audits are a common feature in the DeFi space. For smart contracts, audits are an essential part of the development and help to ensure the project’s code is secure. 

Despite it being a requirement for developers to deploy their code with an audit, most don’t adhere to this. The audits are quite expensive, so scammers won’t bother incurring the additional costs. 

Sure, an audit report for a DeFi project doesn’t mean the platform is entirely safe and shouldn’t be a decisive benchmark for the ideal project. However, it’s an excellent indicator to help you weed out scam projects.  

Who Are The Founders?

Most investors don’t give a second thought about the founders, but it helps to have some information on them. 

Anonymity in the crypto space is not new; after all, it is one of the pillars of blockchain technology. Therefore, it’s not unusual to come across DeFi projects whose founders choose to remain anonymous. 

So, are all DeFi projects run by anonymous founders a scam? Not at all. However, if the founders are anonymous, they cannot be held accountable in case anything goes wrong. So, you can always go for a project with unknown founders, but you run the risk of losing everything and having no one to go after if you lose your money. 

Is There Any Developmental Activity?

One of the best features of DeFi is that most of the platforms are open-source. This means that the development team avails the code to the public so that anyone can make changes to it. Therefore, if you have any code-knowledge, you can always check out the source code to identify any malicious activity. 

The best part about open-source DeFi projects is that if they raise enough interest, more people get on board. You, therefore, have more people checking out the source code for any bugs; thus,  increasing the chances of spotting anything off. 

You should also check the developer’s activity. Are they often deploying new codes? It may not be enough to spot a fake, but a project with zero developer activity should undoubtedly raise some eyebrows. 

How is the Token Distribution?

When finding out more about a DeFi project, you should always pay keen attention to its tokenomics. For starters, find out more about the token’s allocation. 

As expected, the founders will probably hold the lion’s share for themselves. However, this could end up being a problem if the developers are scammers. They can easily hike the token’s prices and later dump their coins in the market, causing the token to lose its value. 

Additionally, the distribution model used is essential. An exclusive presale will mean that only a select few will acquire the tokens at first and cause hype around the project on social media. Airdrops are likely to cause a sell-pressure, while IEOs are more reliable since crypto exchanges put their reputation on the line. 

Do Your Own Research!

Figuring out whether a DeFi project is about to dupe, you can be an uphill task- yet, it’s quite necessary. After all, no one wants to lose their hard-earned money. 

Although these five crucial questions will give you a headstart, they aren’t conclusive. Before placing your money in a sinking ship, do your own research and learn all you can about the project. Not all DeFi projects are a scam, and if you get a legitimate one, it could end up being a worthy investment with massive profits.

Crypto Daily Topic

What Really Is Selfish Mining: Will Bitcoin Survive This?

Mining is the process through which new Bitcoin blocks are generated. Individual nodes on the Bitcoin network race against time in a series of guesses for the right block. Due to the large size of the network and transaction load, this process is resource-intensive – it requires sophisticated computing equipment and consumes massive amounts of power. 

Selfish mining is when a miner withholds newly generated blocks then releases them to the public ledger when they have formed the longest chain. Other legitimate miners may join the selfish miner on their private network due to the possibility of higher returns. The practice is neither illegal nor disallowed, but selfish mining undermines Satoshi’s vision of decentralized production and distribution of money. 

How Selfish Mining Works

Mining involves solving complex cryptographic puzzles, which are guesses. Depending on the difficulty of the puzzle being solved, and the associated power costs, the reward you can earn from this process can vary greatly. As such, even if miners combine effort, the overall output for each miner is proportional to the individual effort invested. 

This was the case until researchers Ittay Eyal and Emin Gun Sirer discovered that miners could actually cheat the system by hiding the newly-generated blocks from the public blockchain. Transactions will still be verified, and new BTC generated because the newly-generated blocks are made available on the selfish miners’ private networks. By withholding the new blocks from the public blockchain, such miners circumvent the infrastructure restrictions that make mining resource-intensive and speed up the discovery process. 

Whatever makes selfish mining possible is a vulnerability on the Bitcoin network that uses the longest chain rule to indicate which chain to follow. Usually, the correct chain to follow is the one with the highest number of new blocks – in other words, the one with the highest proof of work. Since it is possible to withhold a block and release it after accruing several of them, one can always wait until they have several blocks then release them to the public blockchain. This will result in other miners following that chain and surrendering their earnings to the owner of this chain. 

How It Impacts Bitcoin’s Integrity

Undoubtedly, selfish mining poses a threat to Bitcoin’s integrity. Cryptocurrencies sell on the premise that they are decentralized and tamper-proof. Thus, the idea that a group of people can collude to subvert the system’s mechanics raises concern. 

Of particular concern is how selfish mining increases the possibility of a 51% attack. Over time, selfish miners can create mining pools with an ever-growing hash rate. As more parties join the pools, their chances of acquiring majority power increases. Eventually, this may allow them to block other miners, reverse transactions, exclude transactions, and so on. However, considering how large the Bitcoin network is, there is only a low likelihood that a mining syndicate will gather enough resources to take most of the power. Additionally, Bitcoin enthusiasts believe that the motivation for selfish mining is lower than the rewards. If other parties decide to join selfish miners in their pools, they might eventually be unable to recover the investment they made in their mining operation.

The practice of selfish mining is also wasteful in that miners spend serious resources trying to find a block that another miner is withholding. Thus, it is only economical for all miners to just play by the rules. In short, this is neither a sustainable nor responsible way to generate earnings on the Bitcoin network. 

How Selfish Mining Undermines the Decentralization Philosophy 

Decentralization is at the heart of Bitcoin’s philosophy. Satoshi envisioned that no person or group of people would have the authority to control the production or distribution of coins on the network. 

When a selfish miner generates a new block, their chain will be shorter than the public blockchain. However, if they keep hoarding blocks, their chain might eventually become longer than the one on the public blockchain. Naturally, honest miners will be inclined to join the private chain to earn more because the private network has a better chance to realize new blocks faster. If the selfish miner keeps ‘recruiting’ rational miners to their pool, they could eventually control the majority of the public blockchain. In essence, they will have all the power to generate and distribute Bitcoin. 

Is It Anything New?

Selfish mining is not entirely new, and for that reason, it should be particularly worrying to Bitcoin users. At the moment, two-thirds of all Bitcoin generated is mined in China, which is not a result of selfish mining. It just happens that it is easier to access ASICs in the country, plus electricity is way cheaper there than in other mining locations. As such, concerns have been raised about whether China has had a mining monopoly of sorts. Whatever the case, there is no indication that Chinese miners are working as a single enterprise. 

Are There Consequences?

If only a few miners adopt selfish mining, the overall impact on the blockchain network will be negligible. On the other hand, if all miners, hypothetically, take up selfish mining, their efforts will cancel out. Renowned economists have reiterated that it seems to make sense, while theoretically, the practice is not economically viable. Paul Sztorc, a popular economist, thinks that selfish miners will lose motivation upon realizing they are only backstabbing each other. In conclusion, selfish mining does not have enough economic motivation to become a widespread practice. 

Also, this activity may adversely impact Bitcoin’s reputation, which may cause its price to drop. Consequently, selfish miners will earn more Bitcoins but ones that are devalued. 

What’s the Future of Selfish Mining?

Selfish mining is likely to remain in theory or limited practice due to the reasons we’ve mentioned earlier. As we have seen, the major challenge with this practice is that if it becomes widespread, it will turn into a dirty game as selfish miners will be competing in hoarding new blocks. While this decreases the economic motivation, it might not exactly protect the Bitcoin network from the inefficiencies created. 

So, what would be a better solution? A research paper has proposed a scheme for penalizing nodes that withhold new blocks. The proposal ensures that miners who generate new blocks and fail to publish them on the blockchain have their mining rewards reduced. This would be an ideal penalty for selfish miners, but it appears as if the practice is not a huge threat currently.

Final Thoughts 

Selfish mining can allow mining syndicates to increase their revenue by always creating the longest chain and attracting other miners to their pools. While the threat is realistic, the likelihood of widespread selfish mining is diminished. The practice is wasteful, and if it becomes widespread, all miners lose their rewards. As we wait to see if indeed the threat will ever become substantial, Bitcoin users can rest easy knowing that Satoshi’s vision of decentralized production and distribution of money lives on. 

Crypto Daily Topic Cryptocurrencies

How to Mine Litecoin: No One Will Ever Tell You This

Litecoin is one of the most popular cryptocurrencies today. The currency is a clone of Bitcoin and appears to ride on the popularity of the pioneer cryptocurrency. However, the crypto has its own merits – like being a ‘lighter’ version of Bitcoin and thus being used in day-to-day transactions. Litecoin is faster than Bitcoin – having a block time of 2.5 minutes compared to Bitcoin’s 10 minutes, meaning it’s quicker and easier for Litecoin miners to make money. 

Litecoin was created in 2011 by Charlie Lee, a former Google engineer. He modeled it after Bitcoin but with certain modifications intended to help it scale compared to Bitcoin. At the time of writing, the currency has a per-token value of $69.54 and a market rank of #7 with a market capitalization of 4.59 billion. 

In this piece, we’ll take a look into the nitty gritties of mining Litecoin.  

#1. Mining equipment

In the early days of Litecoin, the cryptocurrency could be mined using CPUs and GPUs. Litecoin uses the Scrypt hashing protocol – the first successful cryptocurrency to use it. Lee opted for Scrypt instead of Bitcoin’s SHA-256 due to the former being lighter and also because”using Scrypt allows one to mine Litecoin while also mining Bitcoin.” 

However, it’s no longer possible to turn a profit when mining Litecoin with CPUs and GPUs. This is because as competition has ramped up for the currency, mining difficulty has increased, requiring miners to use application-specific integrated circuits (ASICs) developed specifically for the currency. One of the most popular ASICs for Litecoin include Bitmain’s Antminer and LTCMaster. ASICs tend to go for around $1,000 for older models and around $2,000 for newer models. It’s best to go for the newer models, which are more effective. 

 #2. Should you join a mining pool? 

Once you’ve identified which hardware to use, the next decision will be to mine solo or join a mining pool. A mining pool is a group of miners who share computing power to multiply the chances of finding a block and earn mining rewards. Mining alone means you will get to keep all the mining rewards plus a fraction of the transaction fees. (The current mining rewards are 12.5 LTC per block. This will be halved in the next Litecoin halving, which will happen in 2023). And even then, this will require that you have massive hash power (multiple ASIC machines). Mining with a single ASIC is almost guaranteed never to turn a profit. 

By contrast, concentrated computing power in pool mining makes it many times easier for the pool to discover new blocks and attain a reward. The reward is then distributed according to the contribution of each miner. Bear in mind pool mining itself is not guaranteed to turn a profit since it depends on chance, but earnings via a pool are more steady than solo mining. 

Before you join a mining pool, make sure to investigate it thoroughly. Some pools out there are outright scams, while others are just plain shady. Also, it’s not uncommon for a mining pool to fall victim to hacks. So always check a pool’s security history and how they handled any breaches, reputation, member reviews, and management team. Also, try not to keep large amounts of your proceeds with the pool. It’s good practice to transfer proceeds to your wallet as soon as possible. 

Some of the most trusted and popular Litecoin pools out there include F2Pool,, ViaBTC, and ProHashing.

Litecoin: Cloud Mining 

ASICs and pools are not for everyone. Maybe you want to mine Litecoin and don’t have the means or desire to splurge on expensive hardware. Well, you’re in luck because there’s an option of cloud mining that allows you to pay a remote data center to do the mining for you.

With this option, you will be required to put up a certain amount of money – but not nearly as much as you would for an ASIC – to get access to the cloud mining platform. The more you invest, the more you stand to gain from the platform. 

We can’t stress this enough – cloud mining is even more susceptible to scams than mining pools. There are individuals out there who are happy enough to take strangers’ money without an actual mining operation going on on their side. This behooves you to do serious research before getting entangled with any cloud miner. One of the most reputable cloud mining sites is Scotland-based Hashflare, which also has data centers in Estonia and Iceland. Hashflare has been around since 2014 – demonstrating its credibility and staying power. 


The last thing you need to consider is where to store your Litecoin. You have a variety of options starting with the Litecoin Core Client. This is a wallet by the Litecoin Foundation and is open-source, feature-packed, and updated regularly to make it more robust and easier to use. With the Litecoin Core Client, you can store, send, and receive Litecoin as well as view the transaction history of the blockchain. To use this wallet, you have to download the full blockchain on your computer. Of course, it will take up a lot of space, but it pays a lot of security dividends in the long run. The wallet supports Windows, MacOS, and Linux. By using Litecoin Core, you also contribute to the network’s security and decentralization since you’re running a ‘full node.’ 

You also have the option of a cold storage wallet. A cold wallet is one that’s not connected to the internet. This means it is unhackable, and hence very safe. If you have a large sum of Litecoin, a cold storage wallet is your best go-to option. There are also paper wallets that constitute a physical paper in the form of a QR code or a string of alphanumerics. A paper wallet is safer than an online wallet, but it’s vulnerable to theft and damage through fire, water, and wear and tear. You can increase your paper wallet security by laminating it and putting it in a safe place that only you know about. These days, people even strongly advocate for ‘brain wallets,’ which constitute memorizing a seed phrase that you can use to recreate your private key. Obviously, a brain wallet is the most secure of all these options.

Other people choose to keep their crypto funds on exchanges. Exchanges have the advantage of quickly swapping your crypto for fiat. However, this option is not recommended. That’s because exchanges are famously the target of hacking, and you can lose your money in the case of a security breach. Also, you have limited control over your Litecoin in such a wallet. 

Final Thoughts 

Litecoin is one of the most relevant cryptocurrencies, and investing in it through mining is a savvy move. Of course, there are risks to every profitable endeavor, so make sure to do your due diligence before you go all in. 

Crypto Daily Topic

Forget Bitcoin; This Is The Altcoin Everyone Is Rushing To Buy.

Fusion is one of those cryptocurrencies that came not just as another currency but as a platform for innovation. Although it is an open technology that can be used in various applications, this crypto is best known for powering decentralized finance (DeFi). Like Ethereum and Ripple, which are both currencies and innovation platforms, Fusion also offers FSN, its native currency.

Fusion is currently among the least valued crypto in market capitalization and trading volume, but this is likely to change. If innovations on the platform pick up the pace, Fusion will soon be trading in the big league of major cryptocurrencies. 

In this article, we review this underrated crypto and explain why, as an investor, you should keep an eye on Fusion.

Fusion is Driving the DeFi Revolution 

As already mentioned, Fusion’s niche is in the financial technology innovation space. The crypto seeks to achieve this through:

#1: Enriching digital assets – Businesses can use Fusion to create bonds, futures, and other financial instruments with the end goal of separating asset ownership and rights. This is the kind of innovation that traditional finance needs. 

#2: Creating digital exchanges – Fusion provides tools that businesses can use to create any kind of exchange – decentralized, centralized, private, and any other whose need might come up. Using Fusion’s digital exchange tools, low-cost transactions become an even closer reality. 

#3: Managing licenses and royalties – Fusion provides businesses with a platform they can use to issue time-bound licenses and collect royalties for intellectual property while circumventing the traditional challenges associated with these processes.

These are only a few use cases that show Fusion is a crypto with real utility. And as you might know, utility is what gives crypto the potential for growth. With this knowledge, there is no denying that this cryptocurrency has a bright future. 

While these proposed use cases only show that Fusion has the potential for exponential growth, there are more compelling reasons why you should think the crypto is set to rise. Let’s dig deeper.

Why Fusion Will Rise 

We have already seen that Fusion is a crypto with real utility. Solely based on this information, speculators can bet their dollars on the crypto’s future success. But would its financial and technological outlook pass the scrutiny of analysts? Let’s analyze this together.

#1: Fusion is still undervalued – The crypto entered the scene in February 2018 at $3.60 and rallied within three months to reach $9 with a market capitalization of over USD 270 million. The market corrected months later, and the prices went below the $1 mark, where they have stagnated ever since. 

At the time of writing, Fusion ranks at position 453 by market capitalization. Given that Fusion is a solid project, this position does not reflect the cryptocurrency’s true potential. It rose in the past; it will rise again. 

#2: Fusion’s WeDeFi project is gaining momentum – WeDeFi is a DeFi project whose goal is to promote DeFi’s mass adoption. It sounds similar to some of Ethereum’s DeFi projects, but its bull’s-eye focus on mass adoption gives it an edge. Anyway, DeFi is already on the rise, and this makes Fusion even more promising. 

#3: You can earn passively by staking – Fusion allows you to earn (at the time of writing) a 17% annual percentage yield (APY) by locking your funds on the network for at least 30 days. Unlike Bitcoin and other networks that rely on proof-of-work, Fusion uses proof-of-stake to verify transactions. According to the Staking Rewards website, Fusion ranks favorably, even higher than most of the top 30 cryptos. You don’t need expensive mining equipment or even the technical know-how – just delegating your savings to stake is enough to multiply your investment! Once investors learn this secret, Fusion’s stakes will increase. 

#4: Fusion supports smart contracts – There is an interesting feature called “Time Lock” that allows users to schedule transactions. It works like standing orders – a Fusion token holder can play around with their tokens on the network, but when the scheduled transaction is due, the tokens will be automatically transferred to their new owner. This feature will open up innovation on the network and spur its growth. 

#5: Fusion will soon support cross-chain token swap – Fusion is the house of innovation, and this time, they want to make it even easier to exchange any crypto token with any other. Dubbed ‘Anyswap,’ this one-of-a-kind innovation will allow infinite crypto pair exchanges – fully secured with DCRM interoperability. Even Ethereum’s ERC-20 is not there yet. One can only imagine how attractive this innovation will be to investors. 

#6: Fusion has stable liquidity – Currently, many exchanges support FSN/BTC, FSN/ETH, and FSN/USDT pairs, quite impressive for a crypto that is not even on the top 400 list. Is this a sign of their faith in the imminent growth of the cryptocurrency? 

We can go on and on unearthing the unique features that demonstrate that Fusion is poised for success. But, to clear all doubt, let’s take a look at the numbers – after all, numbers don’t lie. 

Fusion’s Financial Outlook

In the whole of 2020, Fusion has mostly traded below $0.50 and maintained its market cap roughly between 5 and 35 million dollars – a marginal variation by crypto market cap trends. One would say that the crypto is uneventful and perhaps lacks the volatility desired by investors. While there’s some truth in this school of thought, investors with a low-risk appetite and a long-term vision might find this relative stability desirable. In the long run, all indicators point to Fusion’s growth, and the coin’s historical stability means that investors can hope for more rallies than corrections. 

Fusion’s 24-hour volume (at the time of writing) was roughly $2 million. This is the volume at a time when the coin was exchanging at $0.26. In contrast, its 24-hour volume was only $7 million when it was exchanging at more than $9. What we’re saying here is that the crypto’s trading volumes have yet to reach their potential explosive heights. When that happens (indicators say it shall come to pass), Fusion’s value will skyrocket, and investors will reap big.

Final Thoughts

Fusion is one of the most underrated cryptos, yet, it is among the most innovative with lots of potential. With solid utility, a good track record, and numerous innovations in the pipeline, this cryptocurrency is poised for success. Currently, it is marked by relatively low trading volumes, market cap, and exchange rates. However, on the brighter side, it can be exchanged for several common currencies – both crypto and fiat, which guarantees investors liquidity. As we have seen, there are many reasons to believe that the future of Fusion is promising. 

Crypto Daily Topic Cryptocurrencies

Top 5 Trends Driving the Crypto Market Right Now

2020 was an interesting year for crypto. From the market crash in March to Bitcoin rebounding past $15k for the first time in two years, to DeFi exploding than ever before, this was not your average year for the industry. But beneath these events were unseen undercurrents that were driving everything. 

As you already know, the crypto market moves to its own beat. It all comes down to supply and demand – the causes notwithstanding. This is starkly different from traditional currency, whose value is set and controlled by central banks. Other factors are artificial actions such as the stimulus protocols being conducted across the globe right now to ameliorate the economic shock of the Covid pandemic. 

What’s the point? That the crypto market is interesting, and the events driving it one side or another are worth a closer look. A lot is happening behind the scenes: from a change in attitudes to stablecoins to new and bold crypto products. 

This article looks at the trends that are currently driving the crypto market and how. 

#1. Stablecoins

Stablecoins are a special kind of cryptocurrencies pegged to real-life assets, so they’re not subject to the wild volatility experienced by ‘normal’ cryptocurrencies. Stablecoins can be pegged to fiat, other cryptocurrencies, or exchange-traded commodities like aluminum or gold. The fact that they are attached to a fixed unit doesn’t mean that their prices never vary. Their market prices tend to fluctuate around their underlying assets. 

Stablecoins have the ability to bridge the gap between fiat and digital currencies. They provide the stability of fiat while maintaining the security of crypto. This year, stablecoins kicked off exceptionally well, recording a $90 billion transactional volume in a single financial quarter. 

As an investor, you can make money off stablecoins.  For instance, you can acquire a stablecoin for $1 and sell it on the market at a higher value of, let’s say, $1.0003. The extra amount might seem meager, but the amount of profit accrued becomes very substantial when you multiply this figure by thousands or millions. 


DeFi (decentralized finance) is, without question, one of the megatrends pushing the crypto space right now. DeFi is the idea that people can have complete financial autonomy. You know, without an interfering government or controlling bank. It’s a revolutionary idea that’s not just timely but liberating. Countless projects are now rushing to introduce new and interesting DeFi products. Things like yield farming, the latest DeFi craze, entered the crypto lexicon less than two years ago. 

The vast majority of DeFi projects are based on Ethereum. Ethereum pioneered smart contracts and decentralized applications (DApps) – which explains everything. The network’s market cap increased by 60% in Q3 2020. This growth percentage was seen by increasing market value from $25 billion to $40.5 billion by the end of September. The top 10 DeFi coins’ market capitalization by total value experienced a greater increase within the quarter. This was seen through the 345% increase (rise from $1.2 billion to $5.3 billion). The market capitalization of DeFi now accounts for roughly 12% of the blockchain’s total market value. As of now, DeFi is the driving narrative for the Ethereum ecosystem.

DeFi protocols such as Compound, Balancer, Curve, and other varied platforms are introducing new and exciting DeFi products. From staking to yield farming to borrowing, investors are rushing to DeFi to carve out financial value. 

#3. The Possibility Of A Cashless Society

One of the biggest upheavals to the world’s normal order in recent times was the Covid pandemic. In the blink of an eye, the pandemic had interrupted everything we hold dear – social life, economies, and yes – deeply held attitudes. Naturally, people began to rethink a lot of things. 

What previously seemed odd was now the norm. Working remotely? Check. Crypto payments? Check. Now, being forced to do things differently can sometimes be a good thing, which is the case with these scenarios. And it seems like these practices will remain even after Covid is long gone. It wouldn’t be an exaggeration to say that a cashless society is a possibility in the future. 

Meanwhile, the blockchain space is expanding quickly, as applications for interacting with crypto also advance. These days, you can easily buy crypto with just a credit card. This is a huge leap from the early days when you had to meet with a stranger to purchase crypto (and we all know that’s a risky proposition). Also, it’s not just the young and savvy population that’s embracing crypto. It’s institutional investors too. 

#4. Derivatives

Derivatives are another trend driving the crypto market. Bitcoin derivatives dominate the market at the moment, but Ethereum is catching up. This is a strong showing of Ethereum, and it hints at a derivatives economy buoyed by Ether and possibly other crypto’s derivatives. It also means both individuals and institutional investors are beginning to see Ethereum as a worthwhile investment and trading asset. Another thing – it shows that the crypto market is maturing. When other cryptocurrencies join Bitcoin in the derivatives club, it will be a diverse and more resilient market. 

#5. Cryptocurrency is becoming big

Crypto is probably enjoying its highest review ratings in years. Bitcoin, the pioneer of them all and the most successful one, is not viewed as a bubble anymore. And its market cap has exploded to eclipse that of superstar companies such as Coca-Cola and Intel. Also, crypto’s underlying tech – blockchain, is now being embraced by a multitude of industries. Like we’d mentioned earlier, institutional companies are getting involved in crypto more than ever before. 

Closing Thoughts

When we study the undercurrents of the crypto market more closely, it’s easier to tell which direction it’s veering to. And the current trends indicate nothing but good things for the future of crypto. Stablecoins are roaring, as is DeFi, and indications point to Bitcoin sharing the derivatives spotlight with other cryptos in the near future. In short: these are the trends driving the crypto market right now. 

Crypto Daily Topic Cryptocurrencies

Learn How To Understand Crypto Market Data and Become a Pro

Newcomers in cryptoverse can be easily baffled by the myriad of things to learn and understand. ‘Ethereum has hit the highest 3-week close since the last bull run,’ and other such phrases are common in this industry. Then, there are charts that track the movement of different performance indicators in real-time. To add to the confusion, experts often differ on investment advice and the impact of various events in the industry. 

This article will help to simplify some of the common crypto market issues you will need to understand. It’s by no means a comprehensive guide for trading crypto, but it will give you that head-start you need to get going. 

Crypto Buzzwords

Buzzwords are a common feature of the crypto market and a common source of confusion at that. Normally, a well-written crypto article will not be without a dozen buzzwords. Some writers use crypto jargon purely for flair. But we will agree that these catchphrases have a way of hammering in opinions that would otherwise fly under the radar. 

To understand crypto market data, it is important to familiarize yourself with the industry glossary. There are a couple of basic phrases like bull and bear markets, trading sideways, support and resistance, candles, etc., that you may need to learn. You can always refer to your glossary when analyzing market data, but don’t you think the market data is already complex enough? You can make things easier by learning some market terminology beforehand on web resources such as Coinmarketcap‘s glossary page.

Market Indicators 

What is a crypto market without indicators? Due to the volume of activity on such markets, it’s impossible to track them on individual trades. Therefore, pros use indicators as quick reference guides for reading what the markets are trying to say. There could be a bunch of indicators used in crypto markets, but these are the most useful ones:

  • Price – It shows how much a crypto asset is trading against the dollar or another base currency. By itself, price doesn’t matter. What’s more important is price movement – that is, the change in price over a certain period (typically 24 hours). These changes are usually marked by opening and closing prices.
  • Market capitalization – It shows the total value of assets in a given market. Most investors believe a high market cap is a characteristic of a low-risk-low-return portfolio. 
  • Volume – It shows how active investors are buying and selling assets. High volumes are usually indicative of a ‘hot’ crypto.

Understanding Charts

Charts are an essential part of representing market data. Whether you’re looking at crypto or forex markets, these graphical data representation tools are inevitable. While newcomers may look at charts as beautiful pictures, market pros track these graphics continuously to know how different assets perform against certain indicators. 

Charts are pretty easy to understand. Basically, they show a certain aspect of a crypto is changing over time. There are several important charts that you need to be aware of:

  • Price charts – Price charts are the most common charts you will see when reviewing crypto market data. They provide you with real-time information regarding the price movement of a given crypto. Most price charts are simple X-Y graphs with day/month/year on one side and prices on the other. You can find easy-to-interpret price charts, among other sites, on Yahoo Finance or Tradingview. As a bonus, most charts are interactive – that is, they allow you to adjust the period for which you wish to view, zoom in to a specific day, and so on. It is highly unlikely that you will experience difficulty in interpreting price charts.
  • Fear and greed index – The fear and greed index seeks to represent the general level of fear or greed among investors. Investors like to give off the vibe that they’re purely analytical human beings, but the truth is they’re pretty emotional. And that’s why when fear spreads in the industry, investors pull out of the market. If we were to express fear and greed mathematically, these two emotions would be inversely proportional to each other – as fear rises, investor greed declines, and vice versa. You can find a good fear and greed index chart on CNN Money, where the index was invented. Well, this is the original index, which was customized for capital markets investors. If you want one specific to crypto markets, you could check out the chart on 
  • Market cap charts – Market capitalization tells you how much worth is a given market, in total. Simply put, multiply the price of a unit of an asset by the total number of assets outstanding, and you get the market cap. You need to understand market cap charts because they give you an idea of how stable that market is. Generally, traders assume that markets with a high market cap (such as Bitcoin) are less conservative and thus less risky in the long run. 
  • Volume charts – A volume chart shows the level of trading activity in a given market. High volumes indicate positive investor sentiment. And just like economic inflation, rising market volumes suggest that things are looking up for that crypto. 
  • Combined charts – These charts put all the indicators (price, volume, market cap) on the same diagram. Each indicator is then marked by a differently-colored line and a key provided. 

Where to Get Reliable Market Data

Getting reliable market data is key to understanding crypto markets and making the right investment decisions. When looking for information, go for reputable sources such as Investopedia, Coinmarketcap, Coindesk, and others. Some data sources may be outdated or just plain incorrect. You know how non-factual data can be misleading. So, when analyzing crypto market data, choose reliable sources. 

Influencer Opinions

Listening to industry influencers is also a great way to understand crypto markets. The opinions of such people have the power of swaying investor sentiment. For instance, if Richard Branson says that he thinks Bitcoin is a ‘get-rich-quick scheme,’ some investors may back off a little. 

Now, you listen to influencers to get pointers on what to look out for. Most of the time, influencers tend to raise controversy, perhaps, just for the sake of it. So, don’t take their word for it – always research wider. 

Final Thoughts

Understanding crypto markets isn’t that hard after all. If you learn a few buzzwords, understand market indicators, know how to read different charts and where to get reliable market information, you could very well soon sound like a pro investor. This was just a basic guide to understanding crypto markets. Always read wide and keep informed. Good luck.

Crypto Daily Topic Cryptocurrencies

Read This Before Investing in a DeFi Project

Decentralized Finance (DeFi) is a system of financial applications that are powered by smart contracts. Defi has exploded in popularity because of its unprecedented features on cryptographic security, fraud-free transactions, and autonomy. Whether it’s investing, loans, insurance, banking, lending, and staking, pretty much every financial offering exists in DeFi. 

The space’s dramatic growth has led many investors rushing in to get a slice of the DeFi pie. But just like with crypto investing, you can gain some handsome profits, but you can also incur devastating losses, especially if you’re not careful. 

This article will guide you in what you need to do before dipping your feet in the DeFi investment waters. But before that, let’s look at what investing in DeFi entails. 

DeFi Investing: The Basics 

There isn’t much difference in the investment opportunities offered in the traditional financial setup and Defi. Decentralized lending, for instance, follows the same principle as lending in centralized finance systems, except this time, smart contracts are involved, and the returns are invariably better. Smart contracts are used to hold collateral from borrowers and also automatically deliver accrued interest to lenders. There’s also ‘staking.’ Staking in DeFi is when you lock up your crypto and get the right to participate in a network and, in some cases, earn rewards for depositing your crypto. 

We also have ‘yield farming’ in DeFi. Introduced by Synthetix and popularized by Compound, yield farming involves locking up your crypto assets in a project’s protocol and earning rewards. 

Defi investors use their insight to spot lucrative opportunities, just like traditional finance investors capitalize their knowledge on assets such as real estate.

With that, let’s get straight to:

What you need to do before investing in DeFi. 

#1. Carry out extensive research

Before you invest your hard-earned money in a Defi project, it helps to do your research. To verify whether a project is legit, head to Google, and type the project’s name followed by the word “scam.” If this project is a scam, someone else might have already flagged it.

You might have typed the name of the project alongside the term “scam,” and nothing has popped up. This does not mean that the project is completely legitimate. You can use Defi tokens and protocols, which anyone can view since the project is open-source. If you can, evaluate the project’s codes to see if the project is genuine. This method particularly helps if you have programming skills or know your way around smart contracts. 

#2 Observe the number of users and what they are saying

The more the users on a blockchain project, the more the value. With blockchain projects (mostly those on Ethereum where several Defi projects are built), there is real-time reporting. This can be done through, which is for raw data, or Dune Analytics, which focuses on user-friendly reports. With these tools, you can look at the total users in a given Defi project coupled with the increasing number of users. The goal is to see real people using these protocols. Keep in mind that some of the data you see can also be corrupted as an elaborate ploy to lure in unsuspecting users. These accounts should belong to quality users, and their growth should be quadratic. If you observe such users utilizing the protocol, then it’s genuine.

Also, be keen on what trusted security professionals are saying and writing about these projects. Defi projects typically subject their smart contracts to manual security audits with an air-tight reputation. Some of them include Certik, Quantstamp, and OpenZeppelin.

You can also check what people on Twitter, Reddit, and DeFi-related sites and forums say about the project. You can also check whether the project is recognized by Defi Prime, Defi Pulse, and Defi Market Cap. 

#3. Verification by Etherscan

Once a project has verified their smart contracts on Etherscan, a unique code will be availed. When viewing the contract, the code you see is the same code you ought to get when using it. Of course, this does not mean that your project is invulnerable to hacks or it’s not a scam. Still, having a code that can be publicly assessed without the fear of the code being changed is vital.

ETHProtect is a service provided by Etherscan that enables people to report suspicious activities on the Ethereum blockchain. A “Red Shield,” issued by Etherscan’s security analysts and the Taint Inference Analysis Engine, is something to watch out for when looking at Defi projects. These usually mean that people have launched a complaint against a certain project. When you see a Red Shield attached to a project, know that it’s been identified as a scam. 

#4. Watch out for fake projects

Many fraudsters are ahead in the game – they create fake projects with legit-sounding names. But when you look more closely, you’ll find that the project’s links are either dead or lead to nowhere. Or it may have a website, but it looks all spammy, like requiring people to sign up for freebies – and other suspicious activities. 

You can also know if a project is legit by checking what exchanges its tokens are listed on. It’s almost impossible to find a scam project listed on reputable exchanges like Coinbase, Binance, Huobi, etc. Instead, fake projects are listed on decentralized exchanges or little-known centralized exchanges. 

Closing Thoughts 

Investing in DeFi can be lucrative, but watch out for the loopholes. The crypto space is full of scammers looking to make a quick buck at the expense of unsuspecting users. Luckily, there are ways to identify a fake DeFi project way before you can be duped to invest in one. Also, you can always analyze a project’s code for the tech-savvy investors and determine if it’s legit. Also, don’t forget the first rule of crypto investing: don’t put in more money than you can afford to lose!

Crypto Daily Topic

Top Liquidity Pools for Earning on the Go 2020

Liquidity is a crucial aspect of any trade, much less the DeFi trade, which is notoriously volatile. Liquidity is how fast an asset can be converted into cash in the market. In DeFi, liquidity refers to the availability of liquid assets in the market.

DeFi is now booming more than ever before. New projects are being launched nearly every week – with each one bringing closer to the decentralized finance dream for millions across the world. Suffice to say, DeFi is inevitable. As such, it’s important to know the most important concepts of the idea, as well as projects that are helping advance those ideas.

This article talks about liquidity pools and some of the best of them in DeFi in 2020.

What are Liquidity Pools?

In DeFi, liquidity pools are tokens that are locked up in a smart contract. They facilitate efficient trade by providing liquidity and are exploited largely by decentralized exchanges (DEXes) to allow for seamless trade and prevent massive price swings.

Projects like Bancor were the first in the door but were quickly followed up by versions with trendier options such as Uniswap, Balancer, Curve, and so on. Balancer even showed the DeFi world that a liquidity pool could have more than just two assets in a single liquidity pool at any given time.

Liquidity pools eliminate the possibility of manipulation that can occur in centralized order books. They also lower gas fees, leveling the playing field for all participants. Also, liquidity pools allow liquidity providers to earn rewards. As such, liquidity pools are an excellent way to earn passive income.

With that, let’s get to:

Best liquidity pools in 2020

#1. Uniswap

Uniswap is one of the earliest liquidity pools and one of the best in terms of offerings. It’s an Ethereum-based token exchange platform that supports 50% Ethereum contracts and 50% ERC20 contracts. On Uniswap, exchange ETH for any ERC20 token in a peer-to-peer and decentralized fashion. The platform is open-sourced, meaning you can create an exchange pair in a pool of your choice for a token of your choice.

You can deposit crypto and receive a Uniswap token in return. For instance, when you deposit USDT, you’ll receive an equivalent amount in UNI (Uniswap’s native token). A liquidity pool on Uniswap could be yDAI+yUSDT+yTUSD+yGUSD, LGO-WETH, etc.

#2. Curve Finance

Curve finance is a decentralized liquidity pool running on top of Ethereum. Curve also supports stablecoin trading with low slippage. The platform started out without a native cryptocurrency but has just launched one – CRV.

Curve currently supports several pools, including yDAI, yUSDC, and yUSDT. It also supports stablecoin and asset swapping with Compound, PAX, etc.

#3. Balancer

Balancer is a price tracker, liquidity provider, crypto exchange, and decentralized asset manager based on Ethereum. It allows traders to exchange various currencies with minimal slippage. As well, anyone can add liquidity to a customizable pool and earn returns.

Balancer supports up to 8 crypto assets, including USDC, DAI, and ETH. In a Balancer liquidity pool, you can have up to 8 tokens at any time. For example, a pool can have several tokens with their respective percentages adding up to 100%.

#4. Bancor

Bancor is an Ethereum-powered protocol exchange that lets you trade between different cryptocurrencies. Bancor supports pooled liquidity, too, and utilizes an algorithmic market-making mechanism to ensure liquidity and keep an accurate report of crypto prices.

Bancor’s liquidity pool is known as the Bancor relay. The Bancor token is a stablecoin that helps mitigate liquidity volatility. Bancor supports liquidity pooling for the BNT token, ETH, ERC20 tokens, and its stablecoin USDB. Using the BNT token, users can swap tokens between other blockchains.

Currently, the Bancor network supports EOS and Ethereum blockchains but can theoretically be adopted by any open-source application that enables value exchange.

#5. Kyber Network

Kyber is another Ethereum-based liquidity and exchange protocol that allows decentralized applications to provide liquidity for users. The network features an ecosystem of vendors, wallets, and users who can just swipe and instantly send/receive tokens in a single transaction.

Kyber features a native utility token, KNC, which rewards liquidity providers and facilitates the network’s governance. As such, token holders can stake the token to take part in governance and earn crypto.

#6. Convexity Protocol

Convexity is a protocol built atop Ethereum’s blockchain that allows users to deposit liquidity and earn returns. It also provides users with an interactive interface to trade in fungible ERC20 tokenized options known as otokens. Users can create collateralized options contracts and sell them in the form of tokens, therefore earning a premium on their collateral.

#7. ICTE Protocol

ICTE protocol is a liquidity pool and a cross-blockchain inter-exchange protocol. ICTE connects both local and web-based exchanges, intending to solve scalability, security, and custodial issues while offering liquidity solutions to stockholders.

#8. KeeperDAO

KeeperDAO is a DeFi protocol based on Ethereum. It’s an on-chain DeFi underwriter that also acts as a proxy volatility fund. KeeperDAO also provides backstop liquidity to support on-chain lending and synthetic asset protocols. KeeperDAO interacts with other DeFi platforms such as Compound to ensure liquidity providers are rewarded with interest at all times.

Closing Thoughts

Liquidity pools provide much-needed movement in decentralized exchanges, aiding the seamless trading of currencies. They are also one of the many DeFi ways individuals can earn through DeFi. These liquidity pools, and others not on the list, are one step closer to financial autonomy for DeFi fans everywhere.

Crypto Daily Topic

Best DeFi Podcasts for 2020

Podcasts have exploded in recent years. As a medium, they provide a platform to discuss ideas in a relaxed and open setting. And frankly, most people would rather listen or watch interesting audio or video than read a lengthy 10k word article. Another emerging topic of interest is DeFi, short for decentralized finance. Podcasting and DeFi meet at an interesting intersection in modern times, and that’s why DeFi experts are using them to connect with a curious base. 

This article brings you the best DeFi podcasts for 2020, so you can never miss what’s trending. Whether you want bite-sized chunks to introduce you to the world of DeFi or the technical stuff, this article highlights the top podcasts for just that. 

#1. Into the Ether 

This is an official podcast of ETHHub, and it focuses on the Ethereum ecosystem with the show run by Gnosis Product Manager Eric Conner and Set Protocol Product Marketer Anthony Sassano. 

The podcast is produced weekly, alongside a newsletter and a repository of documentation to increase awareness on Ethereum and Ethereum protocols.

So far, the podcast has compiled more than 100 episodes on all matters Ethereum, including Ethereum-based applications, protocol upgrades, news, and current issues affecting the Ethereum community. 

#2. Unchained and Unconfirmed

Unchained and Unconfirmed is a DeFi podcast hosted by crypto and blockchain journalist and former Forbes editor Laura Shin. Podcast offers weekly insights into current trends in crypto and DeFi as well as personalities in the space that are making headlines. 

Shin has hosted Unchained since 2016. The show features hour-long interviews with prominent personalities in blockchain and DeFi. Unconfirmed constitutes 20 minutes conversations with industry experts on newsworthy events and begun in 2018. 

#3. The Global Crypto Podcast

This podcast is hosted by James Preston, Marc Forrest, and Shaun Ritson. The team aims to be the leading source of credible DeFi news and information in South Africa, and they hope to do so with a “South African” flavor. 

The show features conversations and interviews with notable figures in the industry with the goal of informing people of the power and potential of decentralized finance and technology. New episodes are released weekly on Mondays, 6 pm (UTC).

#4. The Ethereal Podcast

The Ethereal podcast is part of the Ethereal Summit, an initiative by several DeFi technologists, entrepreneurs, and investors engaging with Ethereum and its latest developments. The Ethereal team wants to inspire a “decentralized future.” 

Hosted by @DeFi_Dad, the Ethereal podcast features interviews with various DeFi builders, as well as leaders of DeFi outfits such as MakerDAO, Nexus Mutual, SKALE, and so on. The goal is to get these figures to give first-hand insights into the challenges involved in building DeFi solutions and decentralized techs. 

#5. Abel’s Abstracts 

Hosted by ETHGlobal organizer Abel Tedros, Abel’s Abstracts focuses on conversations with various builders of Web 3.0 and DeFi solutions and updates on DeFi-specific issues and global topics like covid-19 and how they are affecting financial markets.

#6. Chain Reaction

This is a podcast by Delphi Digital co-founders Tom Shaughnessy and Kevin Kelly. Chain Reaction aims to focus on research on economic, legal, and technical issues affecting the evolvement of decentralized finance and distributed ledger technologies. 

Delphi Digital independent research and consultancy on the crypto market, and this expertise shines through on the podcast as the team explores the work of various players in the DeFi space, such as founders, investors, etc. 

#7. Zero-Knowledge

The Zero Knowledge podcast is run by Videopath and zkSummit co-founder Anna Rose and Fredrik Harryson of Parity Core. The podcast focuses on interviews with zero knowledge experts and its relation to the decentralized web and DeFi.

Research on zero-knowledge proofs is key to cryptography, enabling individuals to transact on blockchain networks privately and securely. The podcast has so far had more than 130 episodes, including interviews with tens of DeFi builders.

#8. Blockcrunch

Launched in February 2018, this is a weekly podcast featuring Spartan Capital Head Of Research Jason Choi, with a focus on providing investors in blockchain and DeFi with relevant information. 

Choi explores a rich variety of topics, including investment research, DeFi startups, exchanges, hedge funds, and generally the crypto market landscape. 

#9. Epicenter

Epicenter is one of the earliest DeFi podcasts – having come into the space in 2013. Indeed, the podcast helped popularize the term “DeFi.” 

Epicenter hosts include Adam B. Levine of Let’s Talk Bitcoin Podcast, Sebastian Couture, Brian Fabian Crain, Chorus One co-founder Meher Roy, Cosmos Research founder Sunny Aggarwal, and Gnosis COO Friederike Ernst. 

So far, the podcast has 350 plus episodes in its catalog, which includes interviews with developers and builders across the DeFi spectrum.

Final Remarks

The DeFi space is relatively new and can be baffling, especially to newcomers. Whether you’re a beginner or a longtimer in the DeFi space, you’ll find that these podcasts are definitely worth checking out. 

Crypto Daily Topic Cryptocurrencies

Should You Buy Bitcoin If The Fed Releases Stimulus?

The covid-19 pandemic has put a lot of pressure on economies. Nearly every region has recorded an economic slowdown since authorities began restricting the movement of people. Some governments have tried to rescue their economies from drowning, while others have done nothing. But the US government has been contemplating a stimulus package after it became clear that the central bank is running out of options.

The release of a stimulus package will invariably affect the economy. By extension, activity in the crypto space will be shaken. Washington has delayed the release of stimulus, but this fiscal intervention seems inevitable in the long run. When that happens, will it be our cue to buy crypto? Well, read on to find out.

How Stimulus Works

During an economic slowdown, such as the one being experienced due to the current pandemic, one of the biggest challenges the economy faces is a restricted cash flow. As people are cash-constrained, the volume of money exchanging hands declines. Since the beginning of the pandemic, there has been a coin shortage in the US. 

A fiscal stimulus can be achieved by having the government cut taxes or increase its spending. When taxes are reduced, people will have more disposable income, and this will encourage spending. In the latter case, an increase in government spending will inject more money into the economy, thereby bringing down the unemployment rate. In either case, the idea is to increase the motivation for spending and reduce the motivation for saving. 

When people are motivated to spend, currency deflation may result because people have money but do not produce more goods and services. The proposed $6 trillion stimulus is over 40 times Bitcoin’s market capitalization. One can only imagine how disruptive releasing this money can be. As we shall see later, the package will impact bitcoin and other cryptos in different ways.

The Case for/against Stimulus

The Fed has so far tried a range of options for keeping the economy afloat, including intervening in the stock markets and dishing out stipends to low income-earning Americans. Economists usually differ on the idea of meddling with the economy. One side of the table argues for a free-market approach, while others argue that government intervention at the right time is usually the best way out.

The problem with the stimulus is that it increases the country’s debt-to-GDP ratio. As will be explained later, people are getting money for work they have not done. This is essentially like borrowing money from the future. Technicalities aside, the issuance of stimulus introduces people’s risk of not using the money for the intended purpose. Beneficiaries can hoard the money in fear of economic uncertainty. This will keep the economy under strain, making crypto appear as the more attractive alternative. 

The other possibility is binge spending – yes, people tend to spend recklessly in times of inflation. This phenomenon typically results in even more inflation. The outcome? More people flock to crypto, which at such times seems immune to currency deflation.  

Impact on Bitcoin/ Cryptocurrencies

#1: Increased Spending on Bitcoin

There is a possibility that when the Fed releases the $1,200 checks, many will spend the money on buying Bitcoin. When the government started rolling out the coronavirus stimulus checks, it was reported that people were putting the money into waggish uses, including the purchase of tigers, guns, and Bitcoin. Judging from sentiments expressed on Twitter shortly after the announcement, Americans were eager to spend the money on non-essentials. 

One Twitter poll sought to know how many would spend their checks specifically on Bitcoin, and a whole 52% of those who qualified for the package said they were going to spend all of it on Bitcoin. The bottom line is that people spent their checks on Bitcoin, and they will do it again. If this happens, Bitcoin trading volume will increase, which will likely trigger a jump in the already-increasing BTC prices. Think about it.

#2: Devaluation of the USD

Stimulating the economy by giving people money will likely cause the USD to lose value and start fetching less on the forex market. This is because you are basically giving people money for work they have not done. Then, there is a (controversial) perception that Bitcoin and crypto, in general, is a haven for assets in times of economic crises. When these two theories are brought together, an influx in Bitcoin investment is very much conceivable. 

You see, investors holding their savings in dollars fear that a devaluation of the currency (in this case, as a result of releasing stimulus) might cause them to lose a significant portion of their savings. On the other hand, Bitcoin is flourishing in the bull market. So, it is only natural for investors to turn to Bitcoin if this money is released to Americans. A likely outcome in such a case is growth in Bitcoin’s demand, which means increasing prices.

Bitcoin’s Advantages (Amid this Crisis)

#1: It’s Not Even the Value, It’s Decentralization 

Bitcoin has a huge advantage over the USD in this crisis, and that’s the fact that it is decentralized. Unlike the dollar, they can’t just print more Bitcoin. This feature guarantees its investors that the risk of artificial deflation is minimized. Of course, there can be no guarantee that crypto will not see the bear run as long as the Fed keeps pumping dollars into the economy, but what are the chances?

#2: As We Speak, Bitcoin is on the Bull Run

Decentralization is great, but we can’t ignore the fact that Bitcoin is currently recording unusually impressive performance. As an investor looking for alternatives to the dollar, which is at risk of deflation, Bitcoin must not be far from mind. The way out can only be crypto since the stocks are not an option. Although share prices may see a decline if inflation indeed kicks in, it’s not a good idea to invest during the bear run. So, it looks like Bitcoin carries the day.

Final Thoughts

The coronavirus pandemic has brought with it an economic meltdown. The Fed has instituted several measures to counter the strain the economy has endured. Plans to release stimulus are before decision-makers now. This move may help relieve economic strain temporarily. However, it is likely to result in inflation. In such a case, investors might flock to Bitcoin to avoid losing their assets. If this happens, Bitcoin might become stronger, and investors’ margins will rise. In short, if the Fed releases stimulus, we could consider it our cue for buying Bitcoin. 

Crypto Daily Topic Cryptocurrencies

Can WazirX (WRX) be the Queen of Exchanges?

While it may appear as though crypto has received a lot of support and adoption, the reality is that penetration is yet to even go beyond 1%. The reasons for this are the massive obstacles standing between Fiat and crypto, such as high fees, complex procedures, regulatory hurdles, etc. Also, existing on-ramp solutions grapple with high deposit and withdrawal fees, delays, and users not truly owning their own money. 

WazirX is a decentralized crypto exchange that wants to solve these and more problems to provide users with the means to adopt cryptocurrency. Based in India and acquired by Binance, the platform’s name, Wazir, is another name for the “queen” in chess. The queen piece can not only play any move; it’s also the strongest. WazirX wants to live up to these characteristics. 

What’s WazirX? 

Launched in 2018, WazirX is a crypto exchange with advanced buy, sell, and trade functionalities. It features a live and open order book on which users can trade over 80 crypto assets, including Bitcoin, Litecoin, BNB, Dash, and more. 

On WazirX, you can also deposit or withdraw crypto and cash in or cash out stablecoins such as USDT in a fast, secure, and peer-to-peer manner. WazirX’s goal is to bridge the chasm between Fiat and crypto. 

WRX’s native token is the backbone of the ecosystem and has several use cases, including trading fee discounts, participation rewards, payment for margin fees, and more. WazirX supports five platforms at the time of writing: Web, Android, iOS, Windows, and Mac.

History of WazirX

The WazirX team launched the platform to respond to the Indian government’s banning of crypto businesses, exchanges, and shops. Banks had also been banned from engaging in any crypto-related activities. 

Today, the platform is, first and foremost, the go-to platform for Indian users to trade in crypto – in an uncensorable manner. But that’s not where the team is stopping. They intend to take the WazirX proposition to more developing and underdeveloped countries for Fiat on-ramp solutions. 

Binance acquired WazirX in November 2019. However, it continues to operate independently with a focus on peer-to-peer crypto trading. The WazirX team shares a vision with Binance, and that’s to increase the freedom of money around the world and improve people’s lives. 

How Does WazirX Realize Security? 

The WazirX team ensures security for the network through the following actions: 

  • Majority of funds kept in cold storage
  • A muti-sig wallet system
  • Two-factor authentication system for transactions
  • Strong KYC/AML procedures
  • Regular security audits

WRX Value 

WRX token holders will receive perks, including but not limited to discounts in payment of fees. The discount structure is as follows: 

  • 1st year: 50% trading fee discount
  • 2nd year: 25% trading fee discount
  • 3rd year: 12.5% trading fee discount
  • 4th year: 6.25% trading fee discount

Users will also earn participation rewards for performing P2P trades. Also, token holders will have voting power to determine issues such as future listings, update releases, etc. 

WazirX will burn 10% off WRX tokens every quarter based on the trading volume. In the end, about 100 million tokens will be burned – in a bid to prevent the token from overflooding the market. 

Who’s on the WazirX Team?

WazirX is the brainchild of a core team of members. We have founder and CEO Nischal Shetty, who is also the founder of Crowdfire and is an awardee of Forbes 30 under 30. 

Co-founder and CTO is also a co-founder of Crowdfire Sameer Mhatre is a full-stack developer and designer. He describes himself as “a huge Java and JS fan.” 

Co-founder and COO Siddharth Menon also co-founded Crowdfire. He’s also the founder of 3Crumbs, one of the early mobile startups in India. 

Community Growth Strategies of WazirX 

The WazirX team intends to implement several community growth strategies in a bid to expand the growth of the network. Current strategies include: 

  • Innovative participation reward programs, e.g., the WRX Trade Mining program
  • Publish media content including guest posts and features
  • Conduct AMAs and both virtual and physical conferences
  • Conduct interviews with influencers
  • Release progress updates every month
  • Headline events and partner with industry influencers

Future strategies include: 

  • Create dedicated Telegram channels for various countries
  • Headline and participate in more events such as meetups and conferences to grow further its offline presence
  • Continue to innovate with rewards programs
  • Collaborate with various wallets and decentralized finance apps to explore Fiat gateway solutions

WRX: Token Supply Distribution 

The ERX token was distributed in the following manner: 

  • Launchpad sale tokens: 10%
  • Private sale tokens: 5%
  • Foundation tokens: 30%
  • Product and marketing tokens: 20%
  • Partnership and ecosystem tokens: 20%
  • WRX Airdrop tokens: 11.10 percent
  • WRX trade mining tokens: 3.90%

How’s the WazirX Token Doing in the Market? 

As of October 31, 2020, WRX traded at $0.088615 with a market cap of $20,718,698 that placed it at #323 in the market. The token had a 24-hour volume of $8,866,743 and a circulating and total supply of 233,817,289 and 995,833,334. WRX has an all-time high of $0.229263 (Mar 07, 2020) and an all-time low of $0.055241 (Mar 13, 2020). 

Where to Buy WRX

You’ll find WRX listed as a market pair of USDT, BTC, BUSD, BNB, TRX, and more in several exchanges. They include but are not limited to WazirX, Binance, BinanceDEX, Bilaxy, Sistemkoin, BiKi, Poloniex, FTX, and Bitsonic. 

Final Thoughts

WazirX is relatively young, but it has done well. With its plan to spread its wings to more countries, the project is poised for more success and could very well compete with more established exchanges like Huobi, Coinbase, etc. Here’s to hoping it succeeds in both expanding and democratizing money for populations. 

Crypto Daily Topic

Top DeFi Tokens of 2020: Check Out Number 5

Which are the best DeFi tokens of 2020? DeFi tokens have had a great year. It’s not an exaggeration to say they could very well eclipse ‘normal’ cryptocurrencies in the future. As DeFi continues to explode and the year nears a close, it helps look at the tokens that have defined 2020 and will probably continue to do so in the coming year.

This list doesn’t just follow the tokens that are the highest in market cap. It also looks at the most promising and exciting tokens. 

#1. Chainlink 

Chainlink is a decentralized oracle for connecting blockchains to external data and information. The Chainlink protocol, which includes the LINK token, allows smart contracts to operate without relying on permissioned or centralized information. For instance, a developer can run a sports betting contract that relies on an external oracle for sports scores. Chainlink has proved especially popular, with countless DeFi protocols including Aave, Ampleforth, Celcius, Arbol,, Nexus Mutual, and Synthetix all utilizing its smart oracles function. This popularity has catapulted it to the top ten in market cap, sitting at #5 at the time of writing. The LINK token, which began the year going for $2, already hit $12. 

#2. Maker (MKR)

Maker is one of the earliest stablecoins in the DeFi space and one of the most resilient. Despite (and probably because) of its low total supply of slightly more than a million, the token is a huge hit in  DeFi, judging by its current per-token value of $513. And this is a climbdown from the highs of $1,700 in 2018 before the token plummeted during the 2018/2019 crypto winter. In 2020, it got a reprieve after reaching $600 this year. With its MKR token, the protocol makes up what is probably the best example of a stablecoin system: a collateralized debt position powered by its  stablecoin – DAI, which maintains stability for the protocol by using various economic incentives. MKR will be one of the tokens driving the DeFi space in the near future and beyond. 

 #3. Aave (LEND)

Aave is an open-source, decentralized protocol that allows users to create money markets, earn interest on their deposits, and borrow funds through the LEND token. With a market cap of $859 million, Aave is currently the 4th biggest DeFi token. Aave has had an incredible year. It started off at a mere $0.009 in  January but has now clocked $73 per token, which is remarkable even in crypto. 

#4. Synthetix Network Token (SNX)

Synthetix is a blockchain protocol that lets anyone gain exposure to a wide array of assets. The platform is credited for introducing yield farming in DeFi, though it’s now been overrun by platforms like Compound and Aave. Still, the token continues to ‘hold the line,’ as manifested by its current position of #9 among  DeFi tokens and #40 among all cryptocurrencies. With a market cap of nearly $500 million, SNX demonstrates its resiliency. Synthetix supports a smart contract infrastructure and incentivization system that will continue to propel it upwards. 

 #5. Dai (DAI)

Part of the Maker ecosystem, DAI isn’t a token that you buy to HODL. Still, it’s an excellent idea to buy the token and hedge your portfolio against volatility. Dai is probably the most elegantly designed stablecoin in the world today, with an ingenious incentivization and collateralization system that securely puts its value at a 1:1 ratio against the US dollar. While other stablecoins achieve stability by using clumsy ways like holding US dollars in the bank, Dai uses a more accurate and flexible tech-based system. Anyone can also create their own Dai if they put up collateral. 

#6 Compound (COMP)

Compound is a DeFi protocol that allows anyone to lend, borrow, and provide liquidity and earn returns. Comp exploded after it started distributing its native token, COMP, in June this year. It’s definitely one of the hottest tokens in DeFi right now, featuring a market cap of $526 million and a per-token value of $124 at the time of writing. COMP is an Ethereum-based mechanism used as a governance mechanism of the Compound ecosystem. As the Compound platform continues to expand, we’re sure to see the value of COMP following the lead. 

#7. 0x (ZRX)

0x is a decentralized exchange protocol that allows developers to create their own exchanges. The project’s founder calls it the “Craigslist for cryptocurrencies” in that anyone can build an exchange and post it online. Despite its promising value proposition, the 0x token, ZRX, has had the slowest growth this year. In January, you could buy the token for around $0.20, and it’s now sitting at $0.36 at the time of writing, with a market cap of $273,926,375. But the dismal growth of the token does not discount its potential to break through in the future. The 0x token is one to keep sights on. 

#8. Ampleforth (AMPL)

Ampleforth kicked off the year trading at around $1, went to rise to $4 in July, before sharply clamping down to around $1 again. Ampleforth calls itself a cryptocurrency “like Bitcoin,” but with a daily change in supply, insuring against market shocks.  Ampleforth wishes to solve what it calls the “dangerously correlated” crypto market by adding diversity to the ecosystem. While most cryptocurrencies follow the Bitcoin price pattern, the AMPL token matches to its own beat. This could prove an excellent hedge for your crypto portfolio. 

#9. Augur (REP)

Augur started the year sitting at around $9, and if now trades at $14 in November, a dip from around $20 in August. Based on Ethereum, Augur, via its native token – REP, aims to power a prediction market where users can earn money if they predict winning outcomes. Augur also acts as a decentralized oracle for verifying real-world events. These events could be anything – from natural events to election results to football matches’ outcomes. At the time of writing, Augur is at position #75 in the market and continues to be one of the DeFi’s best.

#10. Terra (LUNA)

Terra is a DeFi protocol that wants to expand everyone’s financial  inclusivity through its native token, LUNA. The Tetra team wants to “set money free” by building an open, global financial infrastructure. This infrastructure constitutes a family of stablecoins that allow users to earn mining rewards, giving people an incentive to participate in the network. Terra launched its mainnet in April 2019. It currently offers stablecoins pegged to the US dollar, South Korean Won, the Mongolian tugrik, and the IMF’s Special Drawing Rights basket of currencies. Users can trade LUNA as well as stake it and earn interest. LUNA token holders can also participate in the platform’s governance. After kicking off the year at $0.24, LUNA’s price nearly doubled around July before cooling down to around $0.33 in November. With its value proposition, Terra is set to be one of the most important DeFi presences in the future. 

Closing Thoughts

Ten years ago, the crypto space was talking about Bitcoin and decentralized currencies. Now, we’re talking of decentralizing the entire finance space. The above tokens represent some of the most exciting decentralized finance projects and their tokens in 2020. With a rapidly evolving DeFi space, you can expect anything in the coming year, but for now, these are among its biggest stars. 

Crypto Daily Topic

8 Ways to Earn Passive Income with Crypto They Will Never Talk About!

Most people, when asked about ways to make money off crypto, will say trading. Trading is one of the most straightforward and probably the most popular ways to make money with crypto. But there are several other ways to make money with crypto, and most of them are surer bets than trading – by far. 

And the good part? You only need to take action and sit back and watch your money grow with some of the ways. And get this: with some ways like staking, the returns are substantially higher than you could ever get with the traditional finance system. Others, like blockchain-based content creation, may require a more hands-on approach but still can be done alongside your daily job or business. 

 With that, let’s get straight to it!

#1. Mining 

In cryptoverse, mining is the process of using computing power to make guesses until you arrive at the correct hash, which then unlocks the next block in a blockchain network. Crypto miners receive crypto rewards for finding blocks and recording them on the blockchain network. You do not have to have crypto holdings to mine crypto. Miners can choose to convert their block rewards to Fiat immediately, HODL them, or plow those earnings back to their mining system. 

When Bitcoin was starting, anyone could mine from the home computer. But as the mining difficulty increased, the average daily computer could no longer hack it. We moved from CPUs to GPUs (some cryptocurrencies can still be mined with GPUs) to ASICs (Application-specific Integrated Circuits). ASICs utilize specific chips tailor-made for a particular cryptocurrency. Some of the most popular cryptocurrencies, i.e., Bitcoin and Ethereum, are mined with ASICs. 

Today, you can find an ASIC miner for an average of $1,000. If you plan to mine crypto, it’s best to join a mining pool. A mining pool is a team of miners who combine their computational resources to stand a better chance of finding new blocks. The block reward is then shared among the participants, depending on their contribution. Due to the combined computational power, miners in a mining pool are more likely to discover new blocks than individual miners. 

Tip: Join a mining pool for better profitability. 

#2. Staking 

One of the more easy-going ways to earn passive crypto income, staking, involves depositing crypto funds to get staking rewards. Staking networks utilize proof-of-stake or related consensus mechanisms, e.g., delegated proof of stake. With staking, mostly what’s required is just holding tokens in your wallet. In other cases, you need to add or delegate the funds to a staking pool. In DeFi pools, staking similarly involves putting up supported cryptos and earning interest.

When you stake in a network, you’re contributing to that network’s security and resilience, hence the reward. Staking is one of the simple ways to multiply your crypto holdings with minimal effort. 

#3. Lending 

Lending is another hands-off method to make money with crypto. There are multiple peer-to-peer lending platforms (Coin Loan, Nexo, BlockFi, Celcius, EthLend, etc.) that allow you to lock up crypto and earn interest in return. Usually, the interest rate is set by the platform or by you based on prevailing market trends. The more you lend, the more you stand to reap. 

#4. Lightning nodes 

The Lightning Network is a layer 2 solution for blockchains such as Bitcoin. It’s an off-chain payment channel that facilitates the processing of transactions without them being transferred to the underlying blockchain. 

When you use the Lightning Network to conduct a transaction, it’s quicker than if done on the blockchain. A network like Bitcoin only allows one-directional transactions. For instance, if Alice sends Bob one bitcoin, Bob cannot use the same channel to send it back to Alice. On the other hand, the Lightning Network utilizes bi-directional channels that require the involvement of both parties. This makes transactions quicker. 

When you run a Lightning node, you have the ability to process a lot of transactions quickly and get rewarded with transactions’ fees. 

#5. Affiliate programs 

Some crypto projects, especially new ones, will usually reward existing participants for bringing new ones to the platform. If you have, let’s say, a huge social media following, affiliate and referral programs can be a great way to earn passive income. Bear in mind that it behooves you to carry out research on any project you promote. 

#6. Masternodes 

A masternode is like a server, except it runs on a decentralized network. Typically, network participants have to put up sizable amounts of investment to become masternodes. Due to the significant investment, masternodes have a big incentive to maintain and secure the network. 

Crypto projects usually give special privileges to participants who have a considerable stake in their networks, in addition to rewarding them with return rates. 

#7. Airdrops

Airdrops are tokens given away for free by crypto projects in an effort to publicize or market themselves by getting people to talk about it. All you need is a wallet address of a particular crypto when the airdrop is taking place. For other projects, you’ll need to register on the project’s website and do things like retweeting posts, leaving comments on social media posts, sharing posts on platforms like WhatsApp, Telegram, and so forth. Also, some exchanges will conduct airdrops for the users occasionally. 

To have a heads up on upcoming airdrops, you should register sites dedicated to spreading the word about the exact matter. Such sites include Airdropaddict, Icodrops, etc. 

Note that receiving an airdrop will never require the sharing of private keys – a condition that is a telltale sign of a scam.

#8. Creating blockchain and crypto-based content 

With the advent of blockchain, previously unexplored modes of content creation and sharing are now possible. Blockchain-powered content platforms like Steemit allow content owners to monetize their work in various ways – and without intrusive ads popping all over. In such platforms, content creators get to own the rights and ownership of their work. Once you create a substantial portfolio of work, you can monetize it over time. 

Final Thoughts 

What’s better than earning passive income is doing so in a safe and secure environment, and that’s what you get with the activities on this list. Whether it’s staking, mining, running a masternode, you can make money from crypto with minimal effort. Of course, always make sure to do your own research before putting your money anywhere. Good luck!