Category: Crypto Education

This Educational Library will cover every subject related to the cryptocurrency sector. Bitcoin will have its unique place as the leading digital currency.

We will take a particular interest in themes associated with the top ten coins and tokens; also, articles covering new digital technologies and advancements in DLT technologies.

All aspects of the technology such as security, anonymity, wallets, buy, sell, and transfer cryptocurrencies will also be covered.cryptocurrencies will also be covered.

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Crypto Daily Topic

Rare Bitcoin Stale Block Raises Double-Spending and Immutability Concerns

It is now common knowledge that Bitcoin was not only the first cryptocurrency in history, but the blockchain network on which it runs is the most secure in the world, thanks to its ever-growing hash rate.

Stale bitcoins 2020 - Forex Academy

It is now common knowledge that Bitcoin was not only the first cryptocurrency in history, but the blockchain network on which it runs is the most secure in the world, thanks to its ever-growing hash rate.

It is now common knowledge that Bitcoin was not only the first cryptocurrency in history, but the blockchain network on which it runs is the most secure in the world, thanks to its ever-growing hash rate.

Part of the reasons it won the crypto community’s confidence as well as that of many non-techy savvy individuals is that it has core features of money: trusted, scarce, durable, divisible, and widely accepted. There is, however, another feature that is just as important because it is digital and not physical currency: the same money cannot be spent twice.

But what would be your perception of Bitcoin if you learned that Bitcoin is not immune to the double-spending problem? On January 27th, 2020, some money on the Bitcoin blockchain network was double-spent after one of the blocks in the Bitcoin blockchain turned stale according to a tweet by @BitMEXResearch.

Does an incident like this shake your confidence in Bitcoin and crypto in general?

The Crypto Stale Block and Double-Spending Problem

On the day that the first case of Bitcoin double-spending was recorded, October 2019, Bitcoin Gold (BTG), another cryptocurrency, suffered a 51 percent attack. By the time it ended, about 7,167 BTG or about $72,000 had been double-spent. In the case of Bitcoin, a single instance of stale block resulted in the double-spending of about $3. This may not be as bad as the case of BTG, but to understand how it happened, we have to take a step back and look at how computers work.

data transfer between computers - forex academy (markus-winkler-cV9-hOgoaok-unsplash)

Data transfer between computers is speedy, but it is not instantaneous. The time it takes for one computer to transmit data to another depends on many factors besides connectivity. The geographical distance between the two machines, for instance, plays a critical role.

Data sent from computer A would take slightly longer to reach computer C, which is physically farther from computer A compared to computer B, even if by microseconds. In some cases, such communication delays may cause conflicts on the Bitcoin network, resulting in the production of stale blocks.

What Is A Stale Block?

According to bitcoin.org glossary, a stale block in blockchain refers to a block of transactions that is successfully mined but not added to the current best chain of blocks. The primary cause of stale blocks is that another block was added to the chain faster than the first one could be added, often due to network delays. The recent Bitcoin stale block that led to a $3 double-spend was the result of the stale block not being added as the next block despite having verified the included transactions.

In technical terms, a block of transactions on a blockchain network becomes stale when two nodes on the chain, often located a distance apart geographically, solved the computation for the next valid block on the chain at almost the same time. When two miners each find the next block at the same time and send the information to the blockchain network, there will be a disagreement on the network for about 10 minutes or so regarding which block was actually mined first. 

Considering that every Bitcoin node and every miner keeps a copy of the blockchain, it is not uncommon for some nodes in the network to favor one of the two blocks and other nodes to favor the other block. Such a situation, however, is often resolved automatically when the next block is mined and added to the chain.

This means that nodes that accepted the block that eventually was not continued would have to throw out their last block because it is ‘stale.’ Ultimately, the system resolves such conflicts by favoring the ‘most work’ chain, or the longest chain. It is only fair that the chain with the blocks on which more work has been done wins the standoff.

Was Bitcoin Actually A Double-Spent Due To A Stale Block?

BitMEXResearch divulged the details of the Bitcoin stale block and revealed lots of details that left many people with more questions than answers. The block, mined by Poolin, had a size of 0.98MB and was mined less than half a second after the winning block created by BTC.com was mined.

The stale block was promptly orphaned, meaning that it was not added into the blockchain network. What is revealing is that the block had a total of 39 transactions on it when it was validated, but only 38 were included in the next block. The one transaction had an input of 0.00034801 (about $3), an amount that may have been double-spent.

There has been raging debate whether the $3 from the stale block was double-spent. This would be entered into the official records as a double-spending regardless of whether the transaction was a success or not. What is important here is the number of confirmations that the recipient will get. A double-spending would mean the recipient would receive two confirmations; otherwise, they will see two conflict transactions in the mempool.

Confirmations on the Bitcoin blockchain often vary, but a transaction is considered true and not a case of double-spending or stale block after more than one confirmations. Some experts argue that on the Bitcoin network, a single confirmation is not enough; three confirmations are a good number, although it may be more especially if the amount in question is high.

Bitcoin’s Stale Block Matter Raises Questions on Its Immutability

John Adler, the co-founder of Fuel Labs based on Ethereum, is a self-proclaimed “Blockchain skeptic” who insists that such a case as a stale block witnessed in January is proof that the Bitcoin network is not immutable, and thus unreliable as a digital money platform. He argues that the orphaning of a legitimate blockchain block violates Bitcoin’s “immutability” property, and in the process, proves that the ‘Nakamoto Consensus’ guarantees no consistency. Without consistency, he argues, you cannot guarantee immutability in the long term.

Bitcoin developers seemed to put the matter to rest, arguing that John’s view of immutability is naive and that such kind of immutability is not what makes cryptocurrencies work. Bitcoin’s immutability, argued Bitcoin Core developer Bryan Bishop, is a high number of transaction confirmations that make it exponentially hard to reverse or alter a transaction. 

One way that double-spending is significantly reduced in case of such an occurrence is by relying on the number of transaction confirmations. It would be dangerous to rely on only a single confirmation because it would have resulted in double-spending in the case on point. The norm is three or more confirmations, which significantly reduces the chances of a successful double-spending. 

It became clearer that immutability in cryptocurrency ought to be viewed in terms of probability, and in particular, increasingly low probabilities as the chain grows longer and mining becomes more difficult. The probability of stale block in the Bitcoin network drops with time, but it is not uncommon for two competing mining pools to complete mining a block header at almost the same time, something that happens every few months.

The last time this occurred on the Bitcoin blockchain was in October 2019 when BTC.com and its competitor Bitmain Antpool produced two blocks of transactions at virtually the same time, rendering one stale.

How Serious Is the ‘Stale Block’ Problem?

Computer security expert Jon McAfee, another Bitcoin skeptic, is on record describing the cryptocurrency as “true shitcoin” and “stale” because he believes such cases as stale blocks are bound to happen. He believes that cryptocurrencies, in general, will not really catch up with traditional currency because of unrealized problems such as orphaned and stale blocks.

The truth is that stale blocks can be created on purpose in the event malicious people attack an asset such as the Bitcoin Gold 51% attack. This publicized Bitcoin case was, however, not malicious. The system was also quick in resolving the conflict automatically. Had this been a case of intentional or malicious interference with how the Bitcoin system works, it would have been serious enough to warrant doubt over the future of the cryptocurrency. However, it was not.

Bitcoin is the largest cryptocurrency in the world by market cap. It is also the most secure by hash rate. People who have embraced and even invested in it would be wary of any news that may imply such a problem as double-spending, regardless of how small the amount involved is. The rare occurrence that resulted in a stale block is completely plausible, theoretically, but it should not cause alarm.

The Bitcoin blockchain system is designed to expect such a problem. And when it happens, as it did in January, it is a sign that the blockchain is actually in good health. The Bitcoin blockchain platform was able to identify the stale block and drop it – and that is proof that the system works. What is even more impressive is that 38 out of 39 transactions in the block made it to the legitimate block that was ultimately added to the chain.

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Cryptocurrencies

What is IOTA All About? 

Technology makes our lives easier. And as it is now, we might be at the cusp of a new age as far as technological advancements are concerned. In the very near future, it’s highly probable that the mundane devices around us will be interconnected with each other and to the internet. Think of your fridge, car, oven, car, shower, coffee maker, etc.

Technology makes our lives easier. And as it is now, we might be at the cusp of a new age as far as technological advancements are concerned. In the very near future, it’s highly probable that the mundane devices around us will be interconnected with each other and to the internet. Think of your fridge, car, oven, car, shower, coffee maker, etc.

Technology makes our lives easier. And as it is now, we might be at the cusp of a new age as far as technological advancements are concerned. In the very near future, it’s highly probable that the mundane devices around us will be interconnected with each other and to the internet. Think of your fridge, car, oven, car, shower, coffee maker, etc.

These devices will be able to work without needing human intervention. In other words, we’ll be able to derive more value from the things around us, thanks to them being connected to the internet. This phenomenon is called the Internet of Things (IoT). 

It would be ideal if we could actualize IoT without any of the current impediments that face it – with two of the major ones being security and scalability. There is a valid concern that an IoT network would be a security disaster as far as information security, data privacy, and cyber safety are concerned. 

IOTA is a distributed ledger platform that seeks to address the issue of scalability and security for the Internet of Things. What exactly is IOTA, and what does it offer the IoT economy and the distributed ledger space?

What is IOTA?

IOTA is a cryptocurrency project created and optimized for the Internet-of-Things (IoT). The IOTA team envisioned an IoT – already a bold vision by itself – that is powered, secured, and driven by blockchain. David Sostebo, the co-founder of IOTA, wrote that ” IOTA was initiated with a very clear and focused vision of enabling the paradigm shift of the Internet of Things… through establishing a de facto standardized ‘Ledger of Everything.’ 

IOTA diverts from the traditional blockchain model adopted by the majority of cryptocurrencies. Instead, it uses a dedicated distributed ledger platform called Tangle – itself an implementation of a computer science and mathematical concept known as Directed Acyclic Graphs(DAG). Tangle’s consensus mechanism works this way: for new transactions to be valid and before it’s added on the public ledger, it must be validated by the two lastly entered transactions.

This removes the dependence on miners to validate transactions, thus allowing for more scalable transactions (by reducing network congestion and network delays) as compared with traditional blockchains such as Bitcoin’s and Ethereum’s. 

How Does IOTA Work? 

The idea behind IOTA is to integrate blockchain solutions to the Internet of Things. IoT is not a complicated concept or a fantastical idea belonging to sci-fi movies. As a matter of fact, it’s already part of the world’s economy – think devices that monitor factory conditions, driverless cars, smart homes, smart lighting, smart pet care, etc. Research indicates that in 2017, IoT devices had grown up to 8.4 billion, with an even more aggressive growth projected for the future. 

How IOTA Works | Forex Academy

IOTA’s founders believe that for IoT to realize its highest potential, network devices should share and utilize resources more efficiently. The idea is for devices to acquire more resources, such as internet bandwidth, power, storage – only when they need them, and to sell excess or unwanted power at any given time. 

Even the smallest IoT network’s implications would be tens of transactions every second, as devices relay info between and across each other. Such volumes of transactions are beyond the capability of the current blockchain model. For instance, the Ethereum blockchain can handle 15 transactions per second, while the Bitcoin blockchain can handle 7. This results in high transaction fees for priority transactions, while the rest of the transactions can take hours to be completed. As such, the blockchain, as it is, is simply not scalable enough to support the IoT economy. 

IOTA and Scalability

Upon completion, IOTA anticipates having billions of interconnected nodes on its network. To this end, its processing power is designed to expand as more nodes join the network. Tangle’s consensus mechanism dictates that each transaction is linked to two other transactions – in the end, creating a web of transactions based on a verification history. As time goes on, every transaction becomes linked to the ones that verified it. This simple model removes the need for a blockchain. 

In terms of computing power and securing the network, each time a new device submits a transaction – it contributes to the network in this way. Again, this removes the need for block miners. 

IOTA and Transaction Fees

IOTA is also fee-free. As new devices contribute computing power when they submit transactions, the only cost they expend is the electricity they use to confirm the two previous transactions. This essentially makes IOTA free to use. 

This absence of fees is intentional. The IoT network will comprise devices transacting with each other at fractional costs and a very high frequency. Levying charges on such transactions would render micropayments impractical. To serve as the backbone of the IoT economy, IOTA has to be a free network. 

34% Attacks

As you already know, the blockchain is vulnerable to what is known as “the majority attack.” This describes the event when a party manages to control more than 50% of the network (51% attack). In such an event, the attacker can perform malicious transactions, stop miners, and so on. For its part, Tangle will be vulnerable if an entity were to control 34% (over ⅓) of the network’s computing power. 

The IOTA network would be particularly vulnerable to such an attack when it’s still a small network with fewer nodes (i.e., now). It’s easier for a bad actor to gain control of 34% of the network at this time. To curb such an attack, the network is utilizing a Coordinator that synchronizes data across all nodes – cushioning the network against an attack. 

The coordinator node is necessary to protect the early Tangle, and the network plans to get rid of it when it becomes robust and resilient enough. But that also means that the platform is not exactly decentralized right now.

In May 2019, IOTA announced the plan to kill the coordinator and implement ‘Coordicide’ – a new procedure that would make the network decentralized. The protocol, however, is yet to be implemented. 

Who is behind IOTA? 

The IOTA platform was launched in 2015 by David Sønstebø, Dominik Schiener, Sergey Ivancheglo, and Serguei Popov. Sønstebø and Schiener both serve as co-chairman of the board of directors. Ivancheglo departed from the organization’s foundation in June last year in seemingly amicable terms, but as the IOTA community came to discover, there was a ton of intrigue going on behind the scenes. See the full team here. 

Concerns About IOTA 

IOTA has faced criticism for its use of several new technologies instead of tested and tried technologies. Technology experts question if IOTA will really work to scale and if it will stand up to attacks even after more nodes join the network. 

Michigan University’s Digital Currency Initiative published a paper outlining serious flaws in Curl, the network’s hashing function. After testing the hash function, they discovered it produced the same output when fed with two different inputs – a situation known as Collision and one that denotes a faulty hash code. The team added that a malicious actor could have manipulated the flaw to bring down Tangle or steal user funds. The IOTA team has since addressed the loophole.

Ethereum’s core developer Nick Johnson published a scathing article in which he delineated why he thought IOTA’s platform lacked “good technical judgment,” disregarded “cryptographic best practices,” is “a bad actor in the open-source community,” and that its integrity guarantees lack rigor.”

Tokenomics of IOTA

As of May 27, 2020, IOTA was trading at $0. 195231, at a market position of #24 and with a market cap of $542, 649, 121. The coin had a 24-hour volume of $14,089, 509. IOTA’s circulating supply is 2, 779, 530, 283, with a total and maximum supply of the same value. The currency’s all-time high was $5.69 (December 19, 2017), while its all-time high was $0.079620 (March 13, 2020). 

Conclusion

The IOTA project takes the progressive idea of IoT and proposes to make it even better with distributed ledger solutions. For now, the project is far from perfect, or even near full-blown implementation. If everything goes as planned, IOTA will be an unstoppable idea, not just in the distributed ledger space, but in the world.

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Crypto Daily Topic

6 Online Stores Where You can Buy Games with Bitcoin

The number of service providers that accept Bitcoin grows day by day. Nowadays, you can use Bitcoin to pay for all manner of things, from furniture to food to laptops to college. And now, Bitcoiners who are also gaming enthusiasts have a reason to celebrate.

Pay with Bitcoin_Forex Academy

The number of service providers that accept Bitcoin grows day by day. Nowadays, you can use Bitcoin to pay for all manner of things, from furniture to food to laptops to college. And now, Bitcoiners who are also gaming enthusiasts have a reason to celebrate.

The number of service providers that accept Bitcoin grows day by day. Nowadays, you can use Bitcoin to pay for all manner of things, from furniture to food to laptops to college. And now, Bitcoiners who are also gaming enthusiasts have a reason to celebrate.

While some gaming vendors allow you to purchase games directly, they are very far and between. Some platforms have stepped in to fill this gap – enabling you to buy your favorite games with zero hassle. 

Below are the places where you can buy games with Bitcoin:

1. Bitrefill 

Bitrefill is a marketplace that allows you to purchase gift cards and mobile refills from more than 1650 businesses in 170 countries – and pay safely, privately, and quickly with Bitcoin and other cryptocurrencies. With the gift card, you can purchase what you want – in this case, games – from your platform or store of choice.

The platform allows you to purchase video game gift cards for the following stores: 

  • Steam
  • Amazon
  • PlayStation
  • ROBLOX
  • Nintendo
  • Xbox
  • Apple app store
  • Google Play
  • Wargaming.net
  • RuneScape

On the Bitrefill website, select the gift card for your desired game, and how much amount you wish to buy. Then, choose your preferred paying method. Bitrefill supports payment via Bitcoin, Litecoin, the Lightning Network, Dash, Dogecoin, and Ethereum. There is also the option of paying for your gift card from your Coinbase account.

After you complete your transaction, Bitrefill sends you the gift card code. The platform also allows you to purchase non-digital games such as console, and so on. 

2. JoltFun

JoltFun allows you to purchase any of 1000 games across several popular gaming platforms – via Bitcoin and the Lightning Network. Some of the popular game choices include Assetto Corsa, Gears of War 4, Grand Theft Auto V GTA 5, Overwatch, PlayerUnknown’s Battleground, World of Warcraft, The Elder Scrolls and random picks such as One Final Chaos, Cossacks, and American Conquest Park, Azuran Tales, Quarantine, Total War: Warhammer – Call of the Beastmen. 

On JoltFun, you can purchase your video game directly and get to playing already. You can choose games from: 

  • Origin
  • Battle.net
  • PlayStation
  • Steam
  • Rockstar Social Club (Grand Theft Auto and Red Dead Redemption)
  • UPlay
  • Xbox

JoltFun lists all the games that you will find in the actual store. When you choose a game, JoltFun sends you a Bitcoin invoice, after which you have two hours to complete the transaction.

3. Keys4Coins

Keys4Coins allows you to buy gift cards that you can use to buy games from your favorite platforms, as well as purchase games directly from them (Keys4Coins) with cryptocurrencies. You can access your favorite titles including Atlantis 3,  Atlantis 5: The Secrets of Atlantis, Bulletstorm, Corsairs Gold, Curse – The Eye of Isis, Destination Treasure Island, Disciples II: Dark Prophecy,  Dracula2 – The Last Sanctuary, Dracula 5- The Blood Legacy, Empire Earth, Evil Genius, Haegemonia – The Solon Heritage, Knights of Pen and Paper and many more from either of these platforms: 

  • Steam
  • Origin
  • Uplay 
  • Xbox Live
  • PSN
  • Battle.net
  • GOG.com

You can also purchase web hosting crypto conversion services and antivirus programs. Keys4Coins supports payments via Bitcoin, DASH,  Dogecoin, Vertcoin, Monero, Bitcoin Cash, and Litecoin. 

4.  GamesPlanet

GamesPlanet is a video games website that offers some of the most popular titles across a range of categories, including action, adventure, roleplay, MMO, strategy simulation, arcade and indie, and sport. Some of the most popular titles include Quantum Break, Call of Duty: Modern Warfare, Alan Wake, Darksiders Genesis, Hunt: Showdown, Two Point Hospital, Ori and the Blind Forest, Stellaris: Lithoids Species Pack, Crusader Kings, Call of Cthulhu, Sekiro: Shadows Die Twice and more. 

GamesPlanet currently accepts Bitcoin payments via  BitPay. First, you need to set up an account on BitPay, after which you can come back and purchase any game of your choice.

5. Purse.io

Purse.io is a service that allows Bitcoin holders to indirectly purchase products and services from Amazon. The service works by bringing together bitcoin holders and Amazon gift cardholders. If you are a Bitcoin holder and wish to purchase something on Amazon, you can swap your bitcoins for the gift card – whereby the cardholder will make your purchase on your behalf. 

Of course, you can utilize the platform to access the countless number of games on Amazon. The most popular providers are on Amazon, including Nintendo, PlayStation, Xbox, Square Enix, and more. 

Amazon hosts fan favorites such as Star Wars Battlefront, Star Wars Jedi, Grand Theft Auto, Halo 5: Guardians, Naruto Shippuden, Disney Infinity, and so on.

6. Moon

Moon is a browser extension available for Chrome, Opera Mini, and Brave Browser. It supports fast and seamless payments via Bitcoin, Litecoin, Ether, Bitcoin Cash, and the Lightning Network. The extension notifies you whenever there is an option for paying with Bitcoin. 

Speaking to CoinDesk, Moon CEO said: “(The extension)  will pop up a QR code and it will have the lightning invoice, which you could also copy and paste if you can’t use the QR code for some reason, and you’ll be able to pay with your favorite lightning wallet. “

Moon supports the purchase of games from various platforms,  including Amazon. 

Final Thoughts

Are you a Bitcoin lover and a gaming enthusiast? If that’s your combi, then you’re right at home with these platforms. Even Litecoin, Bitcoin Cash, Monero, Ethereum, Vertcoin, DASH, and Dogecoin holders will strike luck. Get to browsing now and pick your selection. 

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Crypto Daily Topic

Altcoins with Lightning Network Support

Satoshi Nakamoto’s vision was for Bitcoin to be a digital currency that could be transferred between users in a fast and secure manner. However, if he intended for the network to one day compete with established payment systems, then he probably did not take into account the scalability level that Bitcoin would need for that to be possible.

Lightning Crypto_Forex Academy

Satoshi Nakamoto’s vision was for Bitcoin to be a digital currency that could be transferred between users in a fast and secure manner. However, if he intended for the network to one day compete with established payment systems, then he probably did not take into account the scalability level that Bitcoin would need for that to be possible.

Satoshi Nakamoto’s vision was for Bitcoin to be a digital currency that could be transferred between users in a fast and secure manner. However, if he intended for the network to one day compete with established payment systems, then he probably did not take into account the scalability level that Bitcoin would need for that to be possible.

As it is now, Bitcoin can muster only seven transactions per second, which pales in comparison to, let’s say, Visa’s 1700. And as more users troop to the network, waiting times and transaction fees continue to increase.

If Bitcoin hopes to ever compete with existing payment models, some adjustments may need to be made to its fabric.

The Lightning Network

Lightning network_Forex Academy

Over the years, Bitcoin developers have come up with several solutions to this problem, from Plasma to Segregated Witness, to sharding, to the Lightning Network (LN).

Proposed by Thaddeus Dryja and Joseph Poon in 2015, LN is an extra layer for the Bitcoin blockchain that uses two-way payment channels to allow users to transact with each other with very nominal fees. Once the parties close the channel, only the initial and final transactions are recorded on the Bitcoin blockchain. Users in a payment channel conduct as many transactions as they want – which happens within seconds and with minuscule fees.

The idea is to reduce congestion in the Bitcoin blockchain and to achieve fast transactions since users do not have to wait for transactions to be processed. On LN, participants can engage in transactions without the need to know or trust each other.

LN is designed for Bitcoin’s scalability problem, but several other cryptocurrencies are looking to adopt the technology to enhance their scalability. Cryptocurrencies that use a different model from Bitcoin, and are hence incompatible with the technology, are working on a similar solution. This article is a look at various cryptocurrencies’ take on the Lightning Network.

Bitcoin and Lightning Network

Bitcoin Lightning_Forex Academy

Lightning Labs, a company dedicated to developing scalability solutions for Bitcoin, released a beta version of the technology for the blockchain in December of 2017. This year, the team announced that they had developed a v0.10 beta version, which is an upgraded version of the first release. This version comes with improvements such as bug fixes, architectural improvements, better security and privacy, and more.

Lightning Labs is not the only startup that’s working on an implementation of the Lightning Network. Other companies such as C-Lightning, Blockstream, and ACINQ are also working on their version of the tech.

Also, several developers have already worked on Lightning Network wallets. Some available options include:

  • Eclair – a mobile wallet for Android designed by ACINQ
  • Munn Wallet – A non-custodial wallet that enables you to make instant payments without configuration procedures
  • Zap – A free Lightning Network wallet that’s simple to use and user-experience-focused.
  • Nayuta Wallet – This a non-custodial wallet for Bitcoin and the Lightning Network
  • Phoenix – This is a non-custodial wallet Lightning Network wallet with a user-friendly and intuitive interface
  • SATs App – SATS App allows you to send Bitcoin like you would a text message, via the Lightning Network

Litecoin and Lightning Network 

Litecoin is modeled after Bitcoin, and is often referred to as ‘the silver to Bitcoin’s gold’. As such, you would expect that the two cryptocurrencies are in direct competition.

Indeed, Lightning Labs’ initial debut implementation of the technology went live on both Litecoin and Bitcoin’s blockchains. Also, the company’s cross-atomic swaps function (the direct swapping of tokens between respective blockchains- bypassing crypto exchanges) was first tested on both Bitcoin and Litecoin.

Though the technology is yet to be implemented on Litecoin, when it does, it will give the network a much-needed push towards wide adoption.

Ethereum and Raiden

The Ethereum network can process transactions two times faster than Bitcoin. Ethereum can currently process 15 transactions per second, while Bitcoin can process 7.

However, Ethereum’s blockchain has more users and is busier than Bitcoin’s since it also runs decentralized applications (DApps) and facilitates initial coin offerings (ICOs). This means the network handles a lot of traffic as it processes token sales and smart contracts. As such, Ethereum needs a different scaling solution, but one uniquely suited to its needs. Several proposals are in the works, but a notable one is Raiden.

Raiden’s concept is much like that of the Lightning Network: providing an extra layer aside from the main blockchain through which individuals can use two-way payment channels to conduct instant and secure transactions with very nominal fees. The difference lies in that Raiden is ERC20 compatible, meaning all tokens issued on Ethereum can use Raiden.

ZCash and BOLT 

The Lightning Network will make transactions on transparent blockchains like Bitcoin a bit more private since payments on the two-way channel will not be broadcasted on the main blockchain. However, the initial and final transactions will be added to the main chain.

ZCash is a privacy crypto network that seeks to provide users with enhanced privacy and anonymity. The Lightning Network’s incomplete privacy state will obviously not mesh well with ZCash – necessitating the need for its own scaling solution.

The network’s proposed solution for this end is called ‘BOLT’ (Blind Off-chain Lightweight Transactions). Created by Ian Miers and Matthew Green, BOLT is inspired by the Lightning Network, only that its approach involves ensuring payments on the same channel cannot be linked to each other, even by transacting parties. Also, transactions occur in milliseconds – without requiring block confirmation.

It will achieve this by utilizing two pieces of technology: blind signatures and commitments. Commitments allow users to hide the value of transactions. Signatures convince users to sign for transactions without recognizing which one they are signing for exactly.

Ripple and Lightning Network

Ripple_ Forex Academy

In August of 2017, Ripple, together with blockchain company BitFury, released a code that integrated the Lightning Network with Interledger. Interledger is a protocol by Ripple that enables transactions between different blockchains. This means not just blockchains like Bitcoin and Ethereum, but also private blockchains and traditional payment models like PayPal.

Ripple doesn’t really need a scalability solution – it can already process an impressive 1500 transactions per second. The network hopes to integrate LN technology for its atomic swaps function and to achieve compatibility between cryptocurrencies.

Ripple’s CTO Stefan Thomas illuminated on this while speaking to Coindesk, saying: “I shouldn’t have to care which particular coin you use or like. If you’re on PayPal and I’m on Alipay or if I’m on Bitcoin and you’re using a bank account, I’ll still be able to send you money and not worry about it. That’s the long term goal.”

Monero and Lightning Network

Just like ZCash, Monero is a privacy-oriented coin, meaning if it needs to use LN for scaling purposes, it will need to put in place some privacy features.

Still, it looks like Monero intends to utilize the Lightning Network for its atomic swaps technology and not so much for its scaling solution. There are also plans to work with Litecoin in a bid to use the Lightning Network into Monero and enable atomic swaps between the two blockchains.

The idea is to ultimately enable Monero users to swap their coins for any other cryptocurrency via LN in the future.

Neo and Trinity

The NEO platform is much like Ethereum in the sense that it provides a platform for developers to create DApps and for users to create smart contracts. As such, it needs a scaling solution to handle the massive traffic and take the strain off the main chain. This solution is called ‘Trinity’ and is still in the works. The solution will see the NEO network scale to new heights of scalability, seeing as it can already handle 1,000 transactions per second.

Stellar and Lightning Network

Stellar is a payment protocol for making fast, secure, and cheap transactions. As it is, the Stellar network can process up to 1,000 transactions per second.

Still, Stellar has announced plans to integrate the Lightning Network. Co-founder and CTO Jed McCaleb stated that this technology has the potential to improve scalability, privacy, and interoperability for the network.

Speaking to Bitcoin Magazine, McCaleb said: “We’re super excited about Lightning,” adding, “In order to keep the network efficient and stable, we need something like Lightning.”

Final Thoughts

The Lightning Network is a great solution for cryptocurrency networks to achieve scalability, more privacy, and cheaper transactions. When these blockchain networks finally roll out their LN solutions, they can go toe to toe with traditional payment systems, and users can expect a better experience.

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Crypto Daily Topic

How to Cash Out Your ICO Proceeds

Almost every week, we hear of another new crypto project being launched that will solve an existing problem or fill a gap in the crypto ecosystem. Even if it’s not geared towards the crypto space, entrepreneurial types may be interested in starting a crypto-related business.

Almost every week, we hear of another new crypto project being launched that will solve an existing problem or fill a gap in the crypto ecosystem. Even if it’s not geared towards the crypto space, entrepreneurial types may be interested in starting a crypto-related business.

Almost every week, we hear of another new crypto project being launched that will solve an existing problem or fill a gap in the crypto ecosystem. Even if it’s not geared towards the crypto space, entrepreneurial types may be interested in starting a crypto-related business.

The common practice to raise funds is through an Initial Coin Offering (ICO). An ICO is a lot like an Initial Public Offering through which traditional companies raise funds. In an ICO, a project sells freshly minted tokens so as to raise capital to start the project. People can invest in the project by receiving the tokens and giving away other cryptos such as Bitcoin, Ether, Litecoin, and so on.

Of course, after receiving the funds, the next step is to cash out and inject it into the project by paying for bills, talent, PR campaigns, legal processes, office equipment, and so on.

None of the above things would be an issue in a normal environment. However, in a world where cryptocurrency is still treated ambivalently, things have to be done differently. There is also the issue of cryptocurrencies not being accepted for everyday use.

Cashing out cryptocurrency for Fiat can be daunting, least of all, when doing so in large amounts. We’re going to take a look at why this is, as well as explore the best strategies to use when cashing out your ICO proceeds.

Why is the Process so Complicated? 

As blockchain continues to occupy more space in finance, a lot of banks and financial institutions are exploring ways in which to incorporate the technology in their operations. While this may be so, the vast majority of banks are not exactly lining up to embrace cryptocurrencies. Not only are cryptocurrencies in direct competition with banks, but they were also created to replace them. As such, it’s only natural that banks will treat cryptocurrencies with suspicion.

Reports are rife that banks are reluctant to do business with crypto-related businesses. Influential figures in the traditional finance space have been on record calling cryptocurrency a fraud. And for the few banks that are willing to engage crypto projects, paperwork upon paperwork and jumping through countless legal hoops is to be expected.

The reason for this is banks have to comply with Anti Money Laundering (AML) and Know Your Customer (KYC) regulations. Banks will be trying to ascertain your source of the funds – and whether it’s legitimate or not. Also, every single transaction has to undergo rigorous verification.

After all these procedures, it is not guaranteed that you will have a smooth sailing relationship with the bank. Due to the regulatory uncertainty of cryptocurrencies, your account will always be at the risk of being shut down. Some words such as Bitcoin, cryptocurrency, ICO, Ether, BTC, and so on can get your transactions flagged and your account shut down.

Also, cashing out via a crypto exchange may have fewer obstacles, but it’s also complicated. Assuming you find a legitimate exchange that’s also legal in your jurisdiction, the first thing you should do is ensure you have a bank account that you will withdraw your money to. You also need to undergo layers of verification processes in both the exchange and bank. Then you’ll have to contend with long wait times and high transaction fees.

Storing your funds in a crypto exchange wallet is not an option, either. Crypto exchange wallets are custodial, meaning you’re not in full control of your funds. Also, exchange wallets constitute online wallets  – which are prone to hacking and other types of fraud.

Withdrawing Small Amounts

Now, if you were to try cashing out the entire amount of funds, not only would it be a logistical nightmare, but it would also raise eyebrows with the bank and the authorities. The best approach would be to withdraw the amount of money that you actually need for various steps of the project, once in a while.

Here are a few ways to go about it: 

  1. Exchange the right amount of crypto for Fiat in an exchange and withdraw the money to your bank account
  2. Make use of peer-to-peer exchanges (exchanges that don’t utilize a third party), e.g, LocalBitcoins and LocalEthereum. Such exchanges provide high security for your funds and protect you from transactions censorship.
  3. Skip the bank altogether by using payment processors such as CoinPayments, CoinGate, SpectroCoin, BitPay, SpicePay, and others. These processors allow you to take things through direct crypto to bank transactions.
  4. Get a prepaid Visa or MasterCard that will allow you to load crypto and directly and use it for payments online and offline payments. These can be obtained at com, Tenx,  Bitwala, and other blockchain banking services.
  5. Pay your staff in crypto and instruct them on how to cash out in Fiat

Taking advantage of relaxed jurisdictions

Currently, there is no solution that directly allows you to withdraw large amounts of crypto. But some while cryptocurrency is frowned upon in many countries. Some countries have a rather open approach. In these jurisdictions, it’s possible to open a bank account and operate with crypto without being censored:

  • Singapore
  • Malta Islands
  • Switzerland
  • Estonia
  • Germany
  • Bermuda
  • Cayman Islands
  • Luxembourg
Categories
Blockchain and DLT

What Are The 5 Key Challenges Facing Blockchain Today?

Blockchain is one of the most disruptive technologies of the last decade, from powering cryptocurrencies to dizzying heights of success to industry after industry racing to incorporate it into their processes.

Challenges facing Bitcoin | Forex Academy
david-shares-4_41-79dHvE-unsplash

Blockchain is one of the most disruptive technologies of the last decade, from powering cryptocurrencies to dizzying heights of success to industry after industry racing to incorporate it into their processes.

Blockchain is one of the most disruptive technologies of the last decade, from powering cryptocurrencies to dizzying heights of success to industry after industry racing to incorporate it into their processes.

It would be ideal if blockchain was a problem-free technology providing problem-free solutions. But this is not the case.

These are the core five issues that are the bane of blockchain’s current existence: unsatisfactory privacy and security; and regulatory, legal, and ethical issues.

1. Security Issues

One of the defining features of public blockchains is their decentralization. This means that they are not controlled, nor can they be shut down by anyone. Decentralization helps keep the blockchain secure since thousands of computers from the globe are participating in maintaining and securing the network. Even if someone managed to shut down some of the computers, the rest would carry on operating the network.

Bitcoin decentralization_Forex Academy

But it is still this decentralization that’s potentially an Achilles heel for the blockchain. While it’s safer than a centralized network, which has a single point of control – and hence a single point of attack, the decentralized model is not perfectly secure. A public blockchain is vulnerable to a 51% attack.

A 51% attack describes an occasion when an entity or a group of people manages to take control of over 50% of a blockchain’s computing power. This would allow them to tilt the blockchain’s operations in their favor. For instance, they could double-spend coins, block transactions, or stop miners.

Smaller blockchains, in particular, are more susceptible to attacks. This is because they have fewer miners securing the blockchain, making it easier for an entity to take control of a bigger percentage of the network’s computing power. For instance, for the IOTA blockchain, a bad actor would only need to take control of 34% of the total network’s hash power.

Luckily, such an attack is extremely rare and unlikely. It is prohibitively expensive for someone to attempt to take control of over 51% of a blockchain network. The sheer financial and time resources needed to pull it off are enough to make one perish the thought.

2. Privacy Issues 

Transparency is another defining feature of public blockchains. The history of transactions is available for everyone to see. While your personal credentials are not made public (or even required for you to conduct a transaction), your public address can be used to link back to you. This state is known as pseudonymity.

In an era of ubiquitous internet when privacy is highly valued, pseudonymous transactions do not exactly fly with many users. To address this problem, several privacy-oriented blockchains have sprung up to fill the gap. Examples include Monero, ZCash, Komodo, and DASH.

3. Legal Issues

While blockchain technology has increased in popularity and is being embraced across industries, its legal standing is still very much grey. Some of the legal issues are as follows:

  • Decentralized Autonomous Organizations (DAOs): these are organizations that are much like traditional organizations in terms of function, except they are governed by computer code, and commands are executed by computers without the intervention of humans or central authorities. But let’s say, for example, in the event of a conflict, how will it be resolved? Who bears responsibility?
  • Smart contracts: Blockchain-based smart contracts are a new kind of contract that is self-verifying and self-executing. This removes the need for costly intermediaries and saves time. Given that smart contracts are pure lines of code, it’s debatable whether they can really be considered as complete contracts, at least in the traditional sense. It’s all well and good if all parties meet their end of the bargain. But in the event of a dispute, would a smart contract be legitimate in the eyes of the law? At the very least, ensure that you have a conflict resolution procedure encoded in the smart contract.
  • Leaving a blockchain: Let’s imagine you’ve been using a blockchain to record sensitive data such as your company’s financial records or employee data. What happens if you stop using the service, and you do not possess copies of the ledger? Before you sign up for a blockchain service, ensure there are provisions in place to ensure that a blockchain service provider surrenders your records back to you at the end of the contract.

4. Regulatory issues

Cryptocurrencies were the first application of blockchain. They are defined by features such as decentralization, distributed, and immutability. This decentralized feature does not particularly fly with the majority of governments and regulators all over the world. This creates a state of regulatory uncertainty.

Bitcoin Regulation | Forex Academy

Governments have taken different approaches to this. Some governments such as Bolivia, Colombia, Iran, Algeria, Pakistan, Bangladesh, and Ecuador have entirely banned cryptocurrencies. Other countries, such as the United States, the UK, Canada, Slovenia, and South Africa, have accepted them. Acceptance can mean anything from cryptocurrencies being accepted as means of payment but not as legal tender, to them actually being used as legal tender – like is the case in the Marshall Islands.

Too strict regulation can stifle innovation. On the other hand, a total lack of regulation could create undesirable circumstances such as market manipulation and unlawful use.

5. Ethical Issues 

Blockchain gives rise to some ethical issues, with the most problematic ones being 1) its environmental impact and 2) criminals taking advantage of it.

Blockchain networks utilize cryptography to maintain security and process transactions. The amount of power that goes into this is jaw-droppingly enormous.

Check out the statistics:

  • If bitcoin was a country, it would be the 41st highest electricity-consuming country in the world.
  • Every year bitcoin produces 34.76 megatonnes of carbon dioxide, similar to that of Denmark.
  • Just one bitcoin transaction consumes more energy than 100, 000 Visa transactions, and as much as a US household consumes in 22 days.
  • The estimated global mining costs for Bitcoin is $1.5 billion.
  • Bitcoin mining uses more power than 12 states (Alaska, Hawaii, Idaho, Maine, Montana, New Hampshire, New Mexico, North Dakota, Rhode Island, South Dakota, Vermont, and Wyoming).

In an era when environmental concerns are more relevant than ever, the staggering use of energy is alarming. For this reason, crypto developers need to come up with more environmentally friendly ways of releasing new coins and processing transactions.

Then there is the issue of blockchain enabling criminal activities such as drug peddling, child trafficking, sex trafficking, tax evasion, money laundering, and so on. Cybercriminals take advantage of the pseudonymous and anonymous nature of cryptocurrencies to engage in such activities. Even cyber attackers want to be paid in cryptocurrency and not other types of money.

Final Words

Blockchain is a powerful technology that has revolutionized certain facets of our society. However, at this stage, the world has to contend with its less-than-perfect implications. While some of the issues require a shift in attitude, others are inherently blockchain’s own. Whether any of these is set to change in the future is anyone’s guess.

Categories
Crypto Daily Topic

Where to Discuss Bitcoin: Top Bitcoin Forums You Should Join

Bitcoin is not just a currency. It’s a revolution that has inspired an entire movement of believers, enthusiasts, and diehards. These groups of people have carved out spaces online and offline to exclusively talk and discuss everything about Bitcoin from the present, to the future, to prices, market trends, and everything in between.

Top Bitcpoin Forums to join | Forex Academy
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Bitcoin is not just a currency. It’s a revolution that has inspired an entire movement of believers, enthusiasts, and diehards. These groups of people have carved out spaces online and offline to exclusively talk and discuss everything about Bitcoin from the present, to the future, to prices, market trends, and everything in between.

Bitcoin is not just a currency. It’s a revolution that has inspired an entire movement of believers, enthusiasts, and diehards. These groups of people have carved out spaces online and offline to exclusively talk and discuss everything about Bitcoin from the present, to the future, to prices, market trends, and everything in between.

Anyone – from dilettantes to serious investors, to developers, to entrepreneurs, to startups can join and participate in these spaces.

In the highlighted places, feel free to join fellow Bitcoiners and engage in everything Bitcoin.

Online

Online places include social media, IRC channels, and forums. Below are links to the discussion boards on those places.

Forums

  • Bitcointalk – This is currently the biggest bitcoin forum. It was founded by Satoshi Nakamoto – the creator of Bitcoin.
  • Bitcoin.com — This is a forum formed by the Bitcoin.com news website.
  • Bitcoin Garden – This is a small Bitcoin forum, but fast establishing itself in the space
  • Bitcoinforum – One of the ‘mainstream’ Bitcoin forums, and associated with the bitcoin.org website
  • Bitco.in Forum – This is a forum where developers, academics, and business-minded Bitcoiners gather to share ideas and promote Bitcoin
  • CryptoCompare Bitcoin page – This is a forum by CryptoCompare where users can discuss and monitor prices, market volumes, and trends in the Bitcoin market.
  • Investing.com Bitcoin page – This is a page on investing.com dedicated to Bitcoin trading and investing.
  • StackExchange Bitcoin page – This is a Bitcoin dedicated page on the StackExchange website, keeping with the question and answer formula for cryptocurrency enthusiasts.

Reddit

 

Bitcoin Reddit_Forex Academy

On Reddit, there are several Bitcoin dedicated pages.

  • r/Bitcoin – This is the main Bitcoin subreddit.

Others include:

  • r/BitcoinMarkets – A subreddit for Bitcoin trading.
  • r/BitcoinStocks – A subreddit for discussions about Bitcoin stocks.
  • r/Jobs4Bitcoins – A subreddit where individuals can provide their talents and skills in exchange for Bitcoins
  • r/BitcoinMining – A subreddit where users can discuss everything mining
  • r/BitMarket – A  subreddit where people can sell and buy Bitcoin
  • r/BitcoinSerious – A subreddit for ‘reasonable discussion relating to Bitcoin’
  • r/BitcoinBegginers – A subreddit where Bitcoin beginners can learn things and freely ask questions
  • r/LocalCommunities – A list of the major Bitcoin communities, per country

IRC Chat

Below is a list of Bitcoin dedicated channels on Freenode:

  • #bitcoin – a general chat for all things Bitcoin
  • #bitcoin-dev – a chat dedicated to technical and development issues for Bitcoin
  • #bitcoin-otc – an over-the-counter Bitcoin exchange
  • #bitcoin-market – a chat dedicated to live quotes about the market
  • #bitcoin-mining – a chat for all things crypto mining

There are more Bitcoin-related IRC chats that you can find here. These chats include Bitcoin projects, local communities for different countries, mining-related communities, more communities on Bitcoin exchanging and trading, and more Bitcoin and crypto-related communities.

Telegram

Bitcoin Telegram_Forex Academy

The following are some of the most popular Bitcoin-related Telegram channels:

Social Networks

The following links will lead to Bitcoin discussion places on these social media forums:

Offline

Bitcoin discussions and related engagements do not just happen on the internet. In the physical world, there is a lot of Bitcoin-related conferences, events, meetups, and so on.

By joining these places, you can increase your knowledge for Bitcoin – from its technicalities to trading to price behavior. It’s also one way to take part in the Bitcoin movement.

Categories
Crypto Daily Topic

The Best 6 Crypto-Lending Platforms And Their Pros And Cons

Most crypto holders believe trading is the only way to make money from their crypto holdings. On the contrary, cryptocurrency today offers many possibilities for individuals to boost their crypto savings and grow their investments. One of these is via crypto lending, whereby you loan out part of your crypto assets and earn interest.

Most crypto holders believe trading is the only way to make money from their crypto holdings. On the contrary, cryptocurrency today offers many possibilities for individuals to boost their crypto savings and grow their investments. One of these is via crypto lending, whereby you loan out part of your crypto assets and earn interest.

Most crypto holders believe trading is the only way to make money from their crypto holdings. On the contrary, cryptocurrency today offers many possibilities for individuals to boost their crypto savings and grow their investments. One of these is via crypto lending, whereby you loan out part of your crypto assets and earn interest.

Another is to deposit your credit funds and let them grow passively.

Via crypto lending platforms, individuals can also get fast access to loans. Unlike traditional lending platforms that require a good credit score, conduct KYC checks, and are at the whims of state regulation, crypto lending platforms allow users to access credit as painlessly as possible.

Thanks to the unregulated nature of cryptocurrency, however, virtually anyone can get access to a loan as long as they have internet connectivity. (This, at least, is the standard, but some crypto lending platforms will restrict use in certain jurisdictions depending on their regulatory requirements. As such, before considering any lending platform, always check whether your country is supported).

How Does Crypto Lending Work?

Crypto lending is a fairly straightforward process. The lender deposits crypto funds on a lending platform. The lending platform then makes the funds available to borrowers at a rate set by the lender.

To take a loan, borrowers create an account and take out a loan for a specified period. When that specified period expires, the borrower returns the funds, along with the pre-set interest rate.

To eliminate risks such as borrowers being unable to pay back the loan, crypto lending platforms usually institute guarantees or require borrowers to set up collateral or some other type of loan-backing system.

Most borrowers take out Crypto loans for two purposes: personal expenses or for margin trading. The personal expense borrowing is similar to the loan services in traditional finance.

Borrowers who take out the loan for margin trading do so because they don’t have enough capital for placing a trade. If they make a favorable trading decision, then they make a profit and pay back the loan easily. If the trade goes awry, they have no choice but to meet the loss and pay back the loan out of their pocket.

The Advantages of Crypto Lending

  • Very favorable transaction fees, especially when compared to the traditional lending system
  • Borrowers do not need to have a bank account (for the 1.7 billion unbanked people, crypto lending is likely their only option)
  • Quick confirmation time
  • No byzantine procedures so prevalent in the traditional lending system
  • Diversified loan options
  • No discrimination based on nationality

The risks with crypto lending

  • A higher default rate when compared to traditional loans
  • The lending platforms are prone to online attacks
  • The volatility of cryptocurrencies that can cause lenders to lose profits or force borrowers to pay more than they borrowed

With that, let’s look at some of the best crypto lending platforms in the industry.

1. CoinLoan

Coinloan is an Estonia-based peer-to-peer lending platform where borrowers can take out crypto-collateralized loans. Clients can also earn interest simply by “parking money” on CoinLoan and letting it work for them.

CoinLoan imposes no credit history checks or KYC procedures. The loan repayment period goes from 7 days up to 3 years, and the platform doesn’t impose any extra fees or penalties. Everyone’s funds are put under the maximum security possible – with cold storage wallets and distributed key storage being the standard.

Coinloan’s lending process is as follows: Borrowers deposit part of their cryptocurrency portfolio as collateral. Borrowers are furnished with the exact figures for the loan contract beforehand. They’re also granted flexible lending conditions, are not submitted to any credit checks, and are offered convenient withdrawal procedures.

Lenders are offered with these guarantees: First, the platform is licensed in the EU and is subjected to various checks and compliance. As such, lenders on the platform are guaranteed repayment of their loan, and their transactions are fully protected with SSL-encryption.

2. YouHodler

This is a crypto-lender based out of Cyprus and Switzerland and lends both crypto and fiat loans backed by crypto.

Its Turbocharge service allows borrowers to take out additional crypto and use it as collateral for other loans. Its MuliHODL feature allows users to boost their holdings by “playing with their crypto and finding the right balance,” which means making small and careful trades with calculated risk. YouHodler also has a wallet available for iOS and Android.

Another thing YouHODLER has going for it is their service which allows borrowers to access instant cash from the platform’s fiat-base funds. This eliminates the need for borrowers to search for a compatible lender, saving time and allowing them to access cash quickly.

3. SALT Lending

Launched in 2016, US-based SALT Lending was one of the first crypto lending platforms in the space. The platform is one of the trusted around and for a good reason. Borrowers can take out crypto-backed loans on a peer-to-peer platform, while also using crypto as collateral.

SALT’s lending procedure is straightforward. Users don’t need to undergo any background verification, and can usually receive the loan the same day. Loan terms are also tailored according to the borrower’s needs, from loan-to-value ratio to loan length.

When it comes to security, SALT Lending goes the whole nine yards. From backing all crypto assets with insurance, to keeping crypto funds in cold wallets. Currently, SALT services loans are available in a select 35 US states, plus Bermuda, Brazil, New Zealand, Puerto Rico, Vietnam, the UK, UAE, Switzerland, and Hong Kong.

4. BlockFi

Launched in 2017, US-based BlockFi offers two products; an interest account and crypto-backed loans. The BlockFi Interest Account lets your crypto work for you by putting it up for monthly interest. Users can earn compound interest on their crypto, boosting their savings in these cryptocurrencies; Bitcoin, Ether, and Gemini Dollar (GUSD).

For crypto-backed loans, BlockFi clients can use their crypto holding as collateral and unlock up to 50% the value of their assets in US dollars. Moreover, borrowers get the funds on the same day through bank wire or stable coin.

Individuals can use the BlockFi loans for pretty much any use, from paying off credit card debt to paying school fees or a home. Small businesses can take out loans to expand their business or to help them pay employees. Currently, BlockFi supports 46 states and all other countries except those with US sanctions.

5. Com

Launched in 2016, Hong Kong-based Crypto.com is a crypto lending platform that also offers exchange-based crypto trading, investment options, and crypto payment gateway services for merchants.

Crypto.com clients can get instant loans without going through convoluted background checks. There also are no fixed repayment schedules or deadlines or late payment penalties. You can repay at your own pace at any time, and any amount, in the 12 months upon the start of the credit period.

Crypto.com also allows users to earn interest on their deposits. Currently, investors can earn interest on the following cryptocurrencies: Bitcoin, Ethereum, Ripple, Binance, Chainlink, Maker, Pax Gold, TrueUSD, Paxos Standard, USD Coin, and Tether.

6. Celsius.Network

Celsius.Network was founded in 2017 with the aim of leveraging blockchain technology to empower individuals with “unprecedented economic opportunities, financial freedom, and income equality.”

Customers can receive loan facilities on collateral-based credit lines on loan terms of 6 months, 1 year, 2 years, or 3 years. The platform imposes no penalties for defaulted loans – failure to pay back the loan within the specified loan term will also lead to the liquidation of your collateral.

Like many other crypto loan platforms, Celsius.Network does not conduct credit checks, and loans are approved within minutes. The platform lets borrowers deposit their collateral in either Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ripple, and DASH. Loans are given in Tether, Fiat, some stablecoins, and Celsius’s own native token – the CEL token.

Users can also deposit CEL, Bitcoin, Ethereum, Litecoin, Ethereum, OMG, Bitcoin Cash, EOS, and other crypto-assets and earn interest.

Bottom Line

As you can see, there are options aplenty for crypto-based lending services. With these platforms, anyone from anywhere can access a loan regardless of their location, credit history, nationality, and whether they’re banked or not.

While all platforms offer the same kind of service, there are the subtleties with each service that differentiates it from the others. These differences lie in loan repayment schedules, supported currencies, loan terms, loan-to-value ratios, and so on. As such, you need to read the fine print and discover which platform works for you.

Finally, ensure to read and understand any terms and conditions for any platform, and check the legality and tax requirements for crypto-based loans in your jurisdiction.

Categories
Crypto Daily Topic

Top 10 Crypto Traders And Blockchain Experts To Follow On Twitter

The world of crypto trading can be murky. To a large extent, this is attributable to the still-novel nature of cryptocurrencies and blockchain. It can also be due to the sheer volatility of the markets that can catch even the most experienced trader off-guard at any time.

The world of crypto trading can be murky. To a large extent, this is attributable to the still-novel nature of cryptocurrencies and blockchain. It can also be due to the sheer volatility of the markets that can catch even the most experienced trader off-guard at any time.

The world of crypto trading can be murky. To a large extent, this is attributable to the still-novel nature of cryptocurrencies and blockchain. It can also be due to the sheer volatility of the markets that can catch even the most experienced trader off-guard at any time.

What’s the beginner crypto trader to do?

Well, crypto enthusiasts can always turn to Crypto Twitter. In this context, Crypto Twitter refers to accounts that have dedicated themselves to providing trading analyses, rationale, and making sense of crypto market moves in general.

In this piece, we provide some of the best crypto trading and analysis experts on Twitter.

Here are their twitter handles:

1. Bitcoin Jack @BTC_JackSparrow

Bitcoin Jack is a crypto trader and a market analyst who offers his analysis in the form of visually stunning charts. If you are a fan of charts and graphs and not so much into theory, then his views on the market are worth following.

2. Mayne @Tradermayne

Mayne is a crypto trader who uses price action as the basis of his analysis, trading insights, and market moves. And he’s happy to share his ideas with his 64k+ Twitter followers. Having been involved in cryptos since 2013, he’s more experienced in the ins and outs of crypto trading than your average crypto investor.

3. Philakone @PhilakoneCrypto

Philakone is also referred to as ‘Philakone Sniper Day Trader.’ On his Twitter page, you’ll find high-quality research and trading resources in the form of videos and charts. He doesn’t shy either from sharing how trading is affecting his personal life.

4. Crypto Rand @crypto_rand

217k+ followers have seen reason to camp at Rand’s Twitter timeline. He regularly shares his technical analyses and connections between crypto and the real-world economy.

5. Luke Martin @VentureCoinist

Luke Martin is one of crypto Twitter’s most-followed figures. His followers are treated with regular technical analyses, charts, and market commentary.

You can subscribe to his daily live webinar, a favorite among traders, for $50 per month. If you want an in-depth analysis of price movements of altcoins, then his account is a must-follow.

6. @filbfilb

Twitter user filbfilb regularly tweets about crypto charts, his trading analyses, and ideas, as well as his predictions on Bitcoin’s future performance. He also writes a weekly newsletter that provides further insights, and he maintains a free journal on Telegram that anyone can access.

7. Anondran @AnondranCrypto

Anondran is a crypto trader, investor, and analyst who has been around since 2015. On Twitter, his fans can expect frequent commentary on what’s happening in the crypto space, as well as his predictions on the most popular cryptocurrencies.

8. Alvin Lee @onemanatatime

Lee is a crypto trading expert who has been around the block for a while. He runs the Aluna Crypto Currency and Trading (LINKKKM) blog, on which readers gain access to different trading/market analysis strategies and tactics. On Twitter, he provides his take on future price movements as well as his own technical analyses.

9. Vinny Lingham @VinnyLingham

Lingham is the co-founder of Civic, a blockchain-based identity management startup. He’s known to provide surprisingly accurate price forecasts on Bitcoin. Lingham is also a frequent fixture at crypto events, where he’s invited to share his insights on the current and future crypto landscape.

10. CoinDesk Markets @CoinDeskMarkets

This isn’t an individual trader. It’s CoinDesk’s official crypto markets Twitter account where they provide commentary on crypto-related events, analyze signals, and follow market moves closely. It’s one of the best accounts to follow if you don’t want to miss the price action of the most popular cryptos.

Final Thoughts

While these crypto trader accounts provide highly relevant and useful insights on what’s happening in the market, remember no trader is infallible or always correct. If you take everything they say and blindly replicate, it’s one way to lose money. These accounts, and any other similar accounts, should aid you in your own research, not replace it.

Categories
Cryptocurrencies

Ethereum 101: Here Is Everything You Need to Know About Ethereum Blockchain

Any newcomer in the crypto sphere will soon notice the fuss around Ethereum – being one of the most talked and written about cryptocurrencies and the second most popular after Bitcoin. After breaking out in 2015, Ethereum has inspired not just crypto but the entire tech space for its novel offerings, which showed everyone that blockchain could be used for more than just digital money.

Ethreum_Forex Academy

Any newcomer in the crypto sphere will soon notice the fuss around Ethereum – being one of the most talked and written about cryptocurrencies and the second most popular after Bitcoin. After breaking out in 2015, Ethereum has inspired not just crypto but the entire tech space for its novel offerings, which showed everyone that blockchain could be used for more than just digital money.

Any newcomer in the crypto sphere will soon notice the fuss around Ethereum – being one of the most talked and written about cryptocurrencies and the second most popular after Bitcoin. After breaking out in 2015, Ethereum has inspired not just crypto but the entire tech space for its novel offerings, which showed everyone that blockchain could be used for more than just digital money.

This article shines a light on the most nagging questions about Ethereum for crypto veterans and novices alike. From “what is Ethereum?” to “how do I mine Ethereum?” to why you should care about Ethereum, we cover it all.

What is Ethereum?

Ethereum is a public, distributed, and blockchain-based platform that allows individuals to create smart contracts and decentralized applications (DApps). Smart contracts are just like traditional contracts involving two or more people who come to an agreement on something. Except, smart contracts are self-verifying and self-executing and hence do not need intermediaries. Decentralized applications are a new kind of application not owned or controlled by third parties and, for this reason, are uncensorable.

How is Ethereum Different from Bitcoin?

Bitcoin was the first blockchain. It originated the idea of a public, open-source, decentralized, and immutable ledger system to verify, secure, and replicate transaction data across thousands of computers around the globe.

Ethereum takes the concept of Bitcoin and expands it. While Bitcoin was created solely as a peer-to-peer electronic cash system through which users can transfer value, Ethereum allows developers from anywhere to run code atop the network and create amazing applications. Applications can be of any nature really: be it voting, games, health records, finance, prediction markets, and more.

How Does Ethereum Work?

Ethereum is a decentralized platform, meaning no one owns it, and no one can delete records or censor it. It is decentralized courtesy of being distributed. The distributed status of Ethereum means anyone can access, see, and download the Ethereum ledger.

Think of a ledger that’s operated by several people with equal access and control. Each maintains a list of all transactions, and all records must be pre-approved by all parties. In this way, no one can modify, steal, or manipulate the data. The Ethereum blockchain operates much the same way, except that it’s thousands of people involved this time.

Transactions are verified by ‘miners’ who check the authenticity of transactions before adding them to the blockchain. Once a transaction goes on the blockchain, it’s immutable, meaning it can’t be deleted or reversed – by anyone.

The Ethereum blockchain and others like it, such as Bitcoin, have one security flaw known as  a ‘51% attack.’ This is a scenario in which an entity takes control of more than 50% of the computing power of the network.

This would essentially be holding the network hostage – and it would allow the perpetrator to double-spend coins, prevent transactions, and stop miners. While a 51% attack is plausible, it’s extremely rare. This is because for one to control over 50% of the computing power of a blockchain network, they would require an enormous amount of resources that are too expensive. Even the most funded person would find this an extremely tall order.

What Is Ether?

Ether (ETH) is the native cryptocurrency of the Ethereum blockchain. Developers use Ether to pay for the execution of commands on the Ethereum network. It’s also a tradable cryptocurrency and a digital store of value.

Where does Ethereum Derive Value? 

Ethereum derives its value from its ability to support smart contracts and a variety of decentralized applications. Although multiple other blockchain projects are taking after its model and are its direct competitors, Ethereum has the headstart advantage – courtesy of being the pioneer smart contracts and DApps blockchain.

Ethereum enables fast, secure, and inviolable processes – from contracts to voting, to record-keeping, and more. Usually, these processes would take days and significant amounts of money. Ethereum proposes to change this.

How Can I Mine Ethereum?

Ethereum mining utilizes a proof-of-work (PoW) consensus mechanism for verifying and confirming transactions.

PoW involves miners generating a random string of numbers (running the ‘hashing script’) until one of them finds the correct one. When that happens, they will broadcast the proof to the rest of the network, which will then allow them to confirm the next block of transactions. The idea is to ensure that anyone who gets to verify blocks has invested significant computational power (proof of work).

The PoW process involves miners competing with each other to find the solution first. The more guesses your machine can make per second, the better your chances of finding the solution fast and earning a reward – known as ‘miners reward.’ Currently, the successful mining of a block on the Ethereum network gets a miner rewarded 2 ETH. The reward was 3 ETH up until the Constantinople upgrade in 2019.

Ethereum mining is a straightforward process as long as you have the right equipment. First, you need to install two software packages. One of these is an Ethereum client that connects you to the Ethereum network and synchronizes the whole ledger, allowing you to see real-time the activities of all other network participants. It also avails all the data you need to start mining.

Ethereum clients are written in Geth and Parity, which are the blockchain’s most popular programming languages. The client’s come equipped with comprehensive instructions for installation.

The next thing is to install the mining software. The mining software is responsible for handling the guesses, while the client is responsible for updating the ledger – in real-time.

Beginner miners may find it more profitable to join a mining pool rather than go solo. A mining pool is a group of miners who combine their hashing power so as to improve the chances of finding the correct guess faster and earn rewards. The rewards are then split in proportion to the computational power each contributed.

Ethereum will not rely on mining forever, though. The network plans to ditch proof-of-work and transition into proof-of-stake (PoS). Unlike proof-of-work, which relies on computational power, proof-of-stake relies on stakeholders to secure the network and achieve consensus. PoS is not only faster but also consumes far fewer resources than PoW.

How to Buy Ethereum

Ethereum is the second most popular cryptocurrency, and so grabbing some Ether for yourself should be pretty straightforward.

One of the most popular ways to buy any cryptocurrency is to do so via a crypto exchange. Exchanges are platforms where people can buy and sell all manner of crypto. As of now, there are countless crypto exchanges available. Always ensure to purchase your crypto from a trusted and verified exchange. Some options include Coinbase, Binance, Huobi, Kraken, CoinEx, eToro, Coinswitch, BitMex, Changelly, Kucoin, BitStamp, Poloniex, and so on.

Alternatively, you could use peer-to-peer services, such as LocalCryptos, which allows you to transact directly with a local person selling crypto.

Once you grab yourself some Ethereum, you’re going to want to guard it jealously. This means keeping it in a safe place where hackers cannot reach. The best option is a hardware or paper wallet – which is both offline and impossible to get hacked, fall prey to phishing scams, and so on. Storing your coins in an exchange is a complete no-no. Exchanges are notorious for getting hacked, and there is no guarantee that you will get your money back should this happen to your exchange.

How Much Does Ethereum Cost? 

Like any cryptocurrency, Ethereum is subject to volatile and unpredictable price changes, making it impossible to predict a definitive price for the currency at any given time.

As of May 19, 2020, Ethereum is trading at $210.16. This is a far cry from its all-time high of $1432.88 on Jan 13, 2018. But it’s a marked improvement from its all-time low of $0.420897 in 2015.

Buying Ethereum involves speculation, just like for any other crypto. If you have the money now, but it’s not enough to quite hit the mark, you can wait until the price fluctuates down and swoop in.

Fascinatingly, Ethereum is divisible up to 18 decimal places. This means you can buy as little as 0.000000000000000001 Ethereum. You can buy whichever amount you want, whether it’s 1%, 40%,50% and so on.

Why Should I Care about Ethereum?

You should care about Ethereum because it has the potential to revolutionize how we do things across industries. Ethereum is also one of the stalwart cryptocurrencies – not “making a splash today and gone tomorrow.” What’s more, organizations such as the Ethereum Enterprise Alliance are designed to drive the adoption of Ethereum blockchain technology across industries, pushing it closer to the mainstream.

For this reason, you can be assured the currency is a guaranteed, long-term store of value. Despite competitor projects emerging, Ethereum has the star and pioneer power to keep it ahead of the curve.

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Cryptocurrencies

What is The Difference Between ASICs vs GPU Mining?

After Bitcoin entered the scene 11 years ago, the word mining took a new meaning altogether. Cryptocurrency mining is the mechanism through which new coins are introduced into circulation, and transactions are processed. The appeal of crypto mining is that miners are rewarded with crypto tokens, or transaction fees, depending on the network. While some miners do it for the thrill, others see it as a valid and even full-time investment.

Crypto mining_Forex Academy

After Bitcoin entered the scene 11 years ago, the word mining took a new meaning altogether. Cryptocurrency mining is the mechanism through which new coins are introduced into circulation, and transactions are processed. The appeal of crypto mining is that miners are rewarded with crypto tokens, or transaction fees, depending on the network. While some miners do it for the thrill, others see it as a valid and even full-time investment.

After Bitcoin entered the scene 11 years ago, the word mining took a new meaning altogether. Cryptocurrency mining is the mechanism through which new coins are introduced into circulation, and transactions are processed. The appeal of crypto mining is that miners are rewarded with crypto tokens, or transaction fees, depending on the network. While some miners do it for the thrill, others see it as a valid and even full-time investment.

What is Crypto Mining?

Crypto mining_Forex Academy

Crypto mining is the process through which specialized computers are used to discover new blocks on a crypto network by ‘guessing’ a random string of numbers until you find the right combination. (A block is a file of transactions plus the metadata of those transactions) This process is known as ‘proof-of-work.’ By discovering new blocks, miners get the right to verify the transactions and add them onto the blockchain. This process is crucial because it removes the possibility of double-spending coins.

Mining becomes harder as a cryptocurrency network becomes more popular, and the miners in a network increase.

In the early days of Bitcoin mining, anyone could mine Bitcoin as long as they had a computing component with sufficient processing power. But as more users trooped to the network, mining difficulty increased, and the average computer no longer cut it. This started a race into the manufacturing of more powerful and efficient hardware.

Graphic processing units (GPUs) were among the first machines that went into crypto mining. These virtually wiped out CPUs. While you can still mine using a CPU, it will largely be of no use since the cost of electricity that you will consume will far outweigh any meager profits you might (yes, might – since discovering new blocks is a game of chance) realize.

Over time, developers came up with mining equipment known as application-specific integrated circuits (ASICs). However, some cryptocurrencies are ‘ASIC-resistant’ (more on that later) and can only be mined with GPUs.

Let’s start with ASIC mining.

What is ASIC Mining? 

ASIC Miner_Forex Academy

Before we plunge full form into ASIC mining, let’s get a snapshot of what it’s about:

ASICs are algorithm-specific, meaning they are designed to mine just one type of coin. E.g., a Bitcoin ASIC cannot be used to mine Siacoin and vice versa.

  • They are highly efficient albeit very costly.
  • They consume less power.
  • They are easy to set up and start mining right away.
  • Their profitability declines fast as mining difficulty increases.
  • In the case of a hard fork, they are rendered obsolete to mine the new coin.

Now, let’s get into the intricacies of ASIC mining, starting with the definition. An integrated circuit is basically a microchip. An IC is one of the biggest technological advances today. Pretty much every electronic equipment uses one, from televisions to phones to GPS trackers to computers to ID cards.

The term application-specific implies that the microchip has been designed for a specific purpose. In this case, that means the IC has been designed to run an algorithm for mining a particular cryptocurrency. Seeing as the ASIC has been designed specifically for that particular coin, that means it’s highly customized, and hence efficient, for that end. Hence, any miner that possesses it has an edge in the business.

The thing with ASICs is that they can be risky. First, the cryptocurrency market is pretty unpredictable, with fortunes quite easily changing overnight. Cryptocurrencies are known to gain or lose up to 10% in just one day. Now let’s say a coin drops in value and stays there forever. Or a cryptocurrency developer decides to change the hashing algorithm. These events would render the ASIC machine useless.

Second, as with any technology, newer ways of doing things get discovered all the time.

Thirdly, as more miners join a network, the mining difficulty increases, and so does profitability.

ASICs and Centralization

Since ASIC miners are known to dominate the game for every cryptocurrency they touch, when the ASIC for a particular coin is made, it becomes almost the only viable way to mine it. Even if profitability drops, they remain the most profitable way to mine the crypto until a new and more powerful ASIC is developed. This results in centralization since it edges out the miners with less powerful mining equipment. This presents a problem since cryptocurrencies are supposed to promote decentralization and democratization in finance.

Cryptocurrency enthusiasts are, understandably, concerned with this state of affairs, and have taken steps to search for alternatives. One of the initiatives has been developing new hash algorithms that render cryptos ASIC-resistant. Another has been hard-forking, like in the case of Monero, in a bid to block ASICs. This doesn’t mean ASIC companies will not try and make equipment that’s compatible with the new algorithm. But that means they would need to change equipment every other time, which is not just expensive but also pointless.

GPU Mining 

Mining GPU_Forex Academy

Before we delve into the intricacies of GPU mining, let’s get a rough idea:

  • Can mine any cryptocurrency
  • Can be expensive
  • Setup may require special consideration for cooling, motherboards sizes, etc
  • More cryptocurrency developers are making ASIC-resistant coins
  • GPU mining proceeds are more stable
  • Can be utilized for non-crypto-mining tasks and, they have a higher resale value

While ASICs are still the most dominant crypto-mining equipment, the anti-ASIC sentiment is now becoming rife in parts of the crypto community. Cryptocurrencies, e.g Ethereum, are now using memory-hard functions or the X16R algorithm – which uses 16 different algorithms at random, making it hard to settle on one algorithm at any time. These initiatives make it possible for alternative mining methods, and GPUs fill in the gap.

However, there are a few downsides to GPU mining as well. First, they can be expensive and require a lot of cooling maintenance. Users also need to make sure that a GPU machine has enough RAM memory and a reliable motherboard. The electricity used is also high. Also, their scope is pretty limited since they can’t really compete with ASICs for some of the coins, such as Bitcoin.

As we’ve noted before, GPU mining is more flexible than ASICs since it can be used for any cryptocurrency. This flexibility can come in really handy, especially with the volatile cryptocurrency market when the fortunes for any cryptocurrency are pretty unpredictable. Also, since they are used for graphics processing, they can be channeled for multiple other uses were crypto mining to stop being viable.

Final Words

In terms of profitability, ASICs unquestionably take the lead over GPUs. Since ASICs are optimized for particular crypto, it means they are the only option that can conceivably mine that crypto with the most efficiency possible. Also, for cryptocurrencies that can be mined with ASICs, the machines completely dominate the space, rendering GPU mining profitability nearly impossible.

However, in terms of the decentralization philosophy of cryptocurrencies, ASICs don’t fit the bill. It’s very likely that ASICs might become obsolete in the coming years. Also, it’s not cheap to invest in ASICs, with a considerable investment but uncertain profitability, thanks to the volatile nature of crypto prices.

This, plus the fact that the crypto community continues to shift towards ASIC-resistant coins, makes the future of ASICs is uncertain. GPU mining, although not nearly as effective as ASICs, makes crypto mining attainable for everyone. It’s likely that GPUs are the future of the industry.

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Crypto Daily Topic

15 Best Bitcoin And Cryptocurrency Podcasts To Follow In 2020

The blockchain and crypto space can be quite intimidating for anyone trying to find their way for the first time. Granted, most people want to get straight to the basics of crypto trading, selling, and buying.

The blockchain and crypto space can be quite intimidating for anyone trying to find their way for the first time. Granted, most people want to get straight to the basics of crypto trading, selling, and buying.

The blockchain and crypto space can be quite intimidating for anyone trying to find their way for the first time. Granted, most people want to get straight to the basics of crypto trading, selling, and buying.

The crypto and blockchain space was intriguing from the start. From Bitcoin’s enigmatic creator to the 2017 boom that turned crypto traders/investors into overnight millionaires as well as the crypto market becoming the most traded in 2019.

Blockchain, the technology powering cryptocurrencies, is now one of the most sought-after technologies across almost every industry.  And how could we forget Bitcoin’s defying of doom predictions to be the most successful asset of the decade?

The industry is becoming a bigger force to be reckoned with every day. It’s natural to want to stay tuned to how events are unfolding in this space. Of course, there are numerous websites documenting everything, but if listening is more your speed, then podcasts are the way to go.

Here are some of the top-rated crypto and blockchain podcasts:

1. The Bad Crypto Podcast

The Bad Crypto Podcast is nothing like its name. On the contrary, the podcast is an impressively done and light-hearted take on crypto and crypto trends. It’s hosted by Joel Comm and Travis Wright and launched mid-2017.

By the sixth month, the duo had released its 100th episode and, within a year, 200 episodes.

The Bad Crypto Podcast is an easy listen – delightfully devoid of the technical jargon and complex market analyses. This podcast can be great for newcomers who want to slowly ease into the world of crypto while not missing out on the important details.

2. Unchained

This is a crypto podcast hosted by former Forbes reporter Laura Shin and is one of the most popular crypto education space.

The Unchained’s audience regularly gets treated to in-depth conversations with some of the leading personalities in the blockchain and crypto space. Past guests include Binance’s Changpeng Zhao, Monero’s Ricardo Spagni, and Bitcoin developer Jimmy Song.

While it may at first sound intimidating, especially to novices, it’s one of the best resources around to learn about what blockchain’s all about and get a first-hand look into the thinking of influential figures and thought leaders in the crypto space.

3. Off the Chain

This is a podcast hosted by Anthony Pompliano, a finance and crypto analyst and writer of ‘The Pomp Letter’ – a crypto newsletter.

Like Unchained, Off the Chain provides a platform for blockchain entrepreneurs and technologists to share their insights about the present and future of blockchain.

Past guests include Bill Barhydt (creator of Abra wallet), American technology investor Keith Rabois, and crypto analyst Murad Mahmudov.

4. What Bitcoin Did

This is a podcast by Peter McCormack, who also runs a blog by the same name. The podcast airs two times per week, thanks to increased demand from the crypto community.

McCormack uses an interview-centered approach to discuss the hottest happenings in cryptoverse. McCormack has talked to some interesting personalities in the crypto space, including Luke Martin from Venture Coinist, crypto celebrity Jameson Loop – the guy who investigated the infamous Mt.Gox debacle Kim Nilsson, and Unchained host Laura Shin.

5. The Bitcoin Podcast

Launched in May 2015, the Bitcoin Podcast set the pace for Bitcoin/crypto podcasts. It’s a one-episode daily podcast with each episode taking at least one hour.

Listeners can expect a variety of host guests from varying backgrounds and hence a rich variety of content. Guests typically include people of interest in the blockchain and crypto space.

The podcast has grown in popularity over the years – and prompted the launch of the Bitcoin Podcast Network.

6. The Crypto Street Podcast

The Crypto Street Podcast is another podcast that takes an interview approach. The show’s guests are typically well-versed crypto traders and miners. Mostly, the guest is a well-known Twitter figure, invited to share their experiences, expectations, and ideas.

The show is hosted by three influential crypto enthusiasts (K1llerWh4le, CryptoDale, and Prince). And if Twitter’s your go-to source of crypto insights and news, then you’re in good company with the podcast.

7. Let’s Talk Bitcoin

When talking of crypto podcasts that started the game, Let’s Talk Bitcoin features among the pioneers. The podcast went live in 2013 and currently has 400+ episodes to its name.

Fans can expect up to two or three episodes per month.

Bitcoin Evangelist and bestselling author of Andreas Antonopoulos co-hosts the show alongside Antonopoulos – the author of several industry-leading books including Mastering Bitcoin, The Internet of Money, and The Internet of Money Volume Two.

8. Ledger Cast

Ledger Cast went live in 2017 and is one of the top crypto and blockchain podcasts available today.

The podcast, which is hosted by Josh Olszewicz and Brian Krogsgard, involves the hosts making sense of events in the crypto space.

Some of the topics have included: “Can Doge take alts to the promised land?” “The IRS wants to know if you bought crypto” and “Ethereum’s hard fork.”

9. Epicenter

This podcast is hosted by Brian Fabian Crain, Sebastien Couture, and Meher Roy.

The podcast was originally called Epicenter Blockchain before re-branding into its current moniker. The show focuses on startups that are incorporating cryptocurrency and/or blockchain into their business model.

Show guests are picked from the business, academia, crypto, and blockchain arenas.

10. Unconfirmed

If you prefer short and snappy content rather than long-winded monologues, then Unconfirmed is your go-to podcast. The show takes place once a week and runs for no more than 20 minutes.

The show features some of the most influential names in the blockchain and crypto arena who are invited to interpret the week’s biggest headlines.

11. Steal This Show

Steal This Show is not strictly a crypto-themed podcast, but listeners can expect the hosts to dive into the in-depth blockchain topics from time to time. The show is hosted by American filmmaker Jaime King and has previously explored topics such as the connection between file-sharing peer-to-peer protocol BitTorrent and cryptocurrency,  BitTorrent’s acquisition by Justin Sun’s Tron, and the regulatory gray area of cryptocurrencies.

12. Magical Crypto Friends

This show is hosted by industry heavyweights Monero’s Ricardo Spagni, Litecoin’s Charlie Lee, Blockstream’s CSO Samson Mow, and anonymous trader WhalePanda. Fans of the show can expect a new episode every month.

The team has, in the past, tackled topics such as regulation, decentralization, and the evolvement of Bitcoin since its groundbreaking launch more than ten years ago.

13. Blockchain Insider by 11:FS

This London-based podcast is hosted by Simon Taylor and Colin G. Platt, and it tackles the week’s most talked-about headlines in crypto and blockchain verse. The show’s enthusiasts can expect at least an episode each week.

14. The Trader Cobb Crypto Podcast

This podcast is hosted by Trader Cobb’s, a crypto trading trainer and one of the most sought-after crypto industry-leading voices. And listeners can tune in to get a first-hand look into his insights about the crypto market.

15. The Blockchain Show

Los Angeles-based The Blockchain Show is hosted by Ethan Kinderknecht, going live at least once a week. Kinderknecht’s approach is more blockchain rather than cryptocurrency and cryptocurrency markets. The show typically takes the form of an interview.

Final Words

Hopefully, by catching up with these shows, you will be acquainted with the blockchain and crypto space faster than you thought. Their insights will be handy in helping you gain a deeper understanding of both the blockchain and cryptocurrency topics as well as how to perfect your trading/investing skills.

Categories
Crypto Daily Topic

12 Most Popular Telegram Channels for Crypto Trends, Investing, and Trading 

Crypto subjects are not for the faint of heart. They’re sometimes highly technical by nature, and with the unpredictable prices of the crypto market, it can be harder to keep up with what’s going on. Of course, when it comes to crypto trading, every latest piece of news of your favorite crypto is important. This is true for the traditional stock market, but even more so for the crypto market, which is affected by the smallest events.

Crypto subjects are not for the faint of heart. They’re sometimes highly technical by nature, and with the unpredictable prices of the crypto market, it can be harder to keep up with what’s going on. Of course, when it comes to crypto trading, every latest piece of news of your favorite crypto is important. This is true for the traditional stock market, but even more so for the crypto market, which is affected by the smallest events.

Crypto subjects are not for the faint of heart. They’re sometimes highly technical by nature, and with the unpredictable prices of the crypto market, it can be harder to keep up with what’s going on. Of course, when it comes to crypto trading, every latest piece of news of your favorite crypto is important. This is true for the traditional stock market, but even more so for the crypto market, which is affected by the smallest events.

One of the best places to keep on top of things is Telegram. The Durov brothers’ end-to-end encrypted platform has 400 million+ active monthly users and has become a crypto community favorite, with discussions on any and everything, from trading and investment tips to market behavior, to industry news, to memes and everything in between.

It would be ideal if all Telegram crypto channels were worth their salt. Unfortunately, you’re more bound to come across a Telegram channel full of inane content and even spam. That doesn’t mean all Telegram channels are like that.

We combed the internet to bring you the top telegram channels that are worth your time and attention.

1. UK Crypto 

Though it currently only has 1632 members, UK crypto focuses on quality over quantity, with a regular mix of educational content, trading insights, and the latest trends.

If you would like to learn how to expertly employ technical and fundamental analysis in your crypto trading, then UK crypto is your go-to telegram channel.

2. Cointrendz

If swing trading is more your jam, then you’ll be at home with Cointrendz. In the channel, you will receive a regular stream of updates on which cryptos are going bullish. If you are one for monitoring volume trends and taking what’s on the top, then Cointrendz has you covered.

Cointrendz currently has 5,951 members.

3. Trading Signals for Free

A trading signal is an indicator to buy or sell. A signal could indicate that a resistance or support level has been broken, that the volume for a cryptocurrency is on an uptrend, a new pattern is emerging, and so on.

With 578 members, Trading Signals for Free is a Telegram channel that provides reliable crypto trading signals, unlike other channels that claim to do so but, in actuality, are pump-and-dump schemes.

4. CoinMarketCap

CoinMarketCap has established itself as one of the best platforms for checking crypto prices, circulating volume, market position, chart history, and so on.

And Telegram users can find the website’s channel, providing them with a supply of the current statistics of the top 10 cryptocurrencies, including price changes, market cap, 24-hour volume, price history of the last seven days and so on.

5. Whale Club Bitcoin Traders 

Wait, a group for whales?! Not so fast. If that were the case, everybody would troop there to get the insider whale strategy. Whale Club Bitcoin Traders is a regular crypto channel with occasional tips on trading and analysis of what’s going to happen in the crypto market. 1, 714 people have subscribed to the channel currently.

6. ETH Trader

Unlike other crypto telegram channel groups, ETH Trader is a channel where Ethereum traders can receive regular updates on what’s happening with their fave crypto. Both novice and experienced traders can learn something every day from this channel. The channel has 4, 765 subscribers.

7. AirDropAlert

A cryptocurrency airdrop is an event where developers of a new currency distribute free coins to existing wallet addresses to promote its awareness and inspire/reward loyalty.

As people receive the tokens, they talk about it on social media and other forums, helping it gain traction. You can find info on upcoming airdrops in many places, including websites, Twitter, Facebook, and crypto forums.

However, if you like to stay updated on upcoming airdrops (who doesn’t?) and prefer Telegram, you need to join the AirDropAlert channel. Presently, the channel has 4, 560 members.

8. Crypto News

Crypto News may have only 335 members, but that small number has no bearing on the quality of the content that you will find on the channel. In fact, fewer members on a Telegram channel makes the platform more organized and manageable, improving the overall experience. On the other hand, a massive Telegram channel can feel cluttered and confusing just for the sheer amount of messages.

Crypto News is a telegram channel that provides a steady stream of news on the most relevant happenings in the crypto space. Members can share their insights and perspectives on these events.

9. ICO Countdown

Initial coin offerings (ICOs) are the cryptocurrency industry’s equivalent of IPOs. Through ICOs, upcoming crypto projects can raise money in order to fund their vision.

ICOs are another way through which to secure new tokens, and they are massively popular in the community. In the first half of 2019 alone, ICOs had raised a total of $1.97 billion. If you want to be in the know about upcoming ICOs, ICO Countdown is a great platform to join. The group has 5, 628 members.

10. Venture Coinist 

Venture Coinist is run by crypto Twitter influencer Luke Martin, who is one of the leading voices in crypto trading technical analysis. If you find thrill in technical analysis charts and spotting potential market entry points through them, then Venture Coinist is your go-to channel.

Martin breaks down the most popular altcoins but dedicates much of his time and effort to the top 10 cryptos by market cap. There is also a decent amount of educational content, including old charts. Through this, you can identify price patterns and see what triggered what event.

The channel currently has 3, 366 members.

11. Cointelegraph

Cointelegraph is the official Telegram channel by the crypto website Cointelegraph. The channel currently has 66, 127 members.

While the numbers seem daunting to keep up with, there are a few advantages to huge telegram channels. First, you are guaranteed to always find people online to chat with. Second, every single piece of information will always be taken apart and analyzed to the bone. It’s also hard for such an enormous number of people to fall victim to fake news, which is uber-common in crypto.

On the Cointelegraph channel, you will find the latest and most relevant crypto news, research on the newest and hottest trends, and market data and analysis.

12. The Crypto Room

The Crypto Room is a Telegram channel where you can interact with other members and interpret the goings-on in the crypto space. What you get is focused on discussions that are backed with evidence and are easy to follow.

The channel currently has 2, 057members.

Categories
Crypto Daily Topic

Future Ready Economies: 5 Countries With a National Cryptocurrency

Cryptocurrency is an internet-based currency that’s faster, has lower transaction fees, prevents the problem of double-spending, and facilitates confidential transactions. These features have a massive appeal for any currency.

Cryptocurrency is an internet-based currency that’s faster, has lower transaction fees, prevents the problem of double-spending, and facilitates confidential transactions. These features have a massive appeal for any currency.

Cryptocurrency is an internet-based currency that’s faster, has lower transaction fees, prevents the problem of double-spending, and facilitates confidential transactions. These features have a massive appeal for any currency.

The solution of the double-spending solves a long-running problem that prevented digital currencies from taking form before Bitcoin. And confidential transactions have never been more relevant than now – in this era of ubiquitous internet.

With that in mind, it’s easy to see why cryptocurrency has developed such an allure, so much that some countries have developed a national currency, or are tinkering with the idea.

Along with that, the concept of a central bank digital currency (CBDC) in which a country’s digital currency is issued, controlled, and managed by the Central Bank has emerged.

This article takes a look at countries that have adopted a national cryptocurrency. 

Venezuela: Petro

Venezuelan Crypto Petro

In February 2018, the Venezuelan government launched a cryptocurrency by the name Petro – short for Petromoneda. On television, President Nicolas Maduro announced that his government would issue a cryptocurrency backed by Venezuela’s oil, gold, and mineral reserves.

According to Maduro, several Fiat currencies such as Russian ruble, the Chinese yuan, Turkish Lita, and the Euro would be convertible with the currency. The president also stated that the currency was made to mitigate the adverse effects of sanctions imposed on the country by the US government. In March 2019, President Donald Trump issued an order that effectively barred US investors from participating in the currency’s ICO sale.

With all this intrigue, though, it’s important to note that Petro was meant to be an alternative to Venezuela’s extremely unstable currency, which has seen a freefall since the country entered into a political crisis in 2016.

Critics have, however, been unforgiving towards the currency. To begin with, its white paper was without any technical oversight and was modified several times after its release. Additionally, the government’s claim that the currency would be backed by oil reserves is hollow at best, since the cryptocurrency’s code describes no such mechanism.

So far, the cryptocurrency has not enjoyed any support in Venezuela itself, let alone anywhere else. As reported by Mary Anastasia O’Grady for the Wall Street Journal in a wittily titled article: “Venezuela Puts the Crypt in Cryptocurrency,” Venezuelans would rather stick to the dysfunctional and hyper-inflated national currency Bolivar and the US dollar than embrace the all-smoke-but-no-fire cryptocurrency.

Dubai, UAE: emCash

Dubai emCash Cryptocurrency

In 2017, Dubai announced a national “encrypted digital currency” called emCash through which people could “use to pay for various government and non-government” services, as well as “varied payments, from their daily coffee and children’s school fee to utility charges and money transfers…”

The project was overseen by the Dubai Department of Economic Development, UK’s Tech Grp LTD, and Dubai’s Emcredit as well as the Pundi X crypto company.

In the statement, Emcredit CEO Muna Al Qassab said: “Customers can choose between two payment options on the emPay platform – the existing dirham payment or emCash. While the dirham payment goes through normal settlement procedures, intermediaries, and costs, emCash payments are settled directly between the user and merchant.” He also added that “emCash provides real-time value movement and merchants can pass the cost-benefit to the emCash holder. It also reduces inflation since the currency is issued in real-time based on demand.”

Senegal: eCFA

Senegal eCFA Digital Currency

Senegal was one of the first countries to adopt a national digital currency. In December 2016, the country launched eCFA, a digital currency named after CFA, the country’s national Fiat currency. eCFA takes the concept of CBDCs, and as such, it’s controlled and issued by the country’s central bank.

eCFA was brought to life through the collaboration of Senegal’s local bank Banque Régionale de Marches and Ireland-based crypto company eCurrency Mint Limited. eFCA is meant for distribution alongside the country’s Fiat currency as legal tender.

BRM and eCurrency released a statement stating: “The eCFA is a high-security digital instrument that can be held in a mobile money and e-money wallets. It will secure universal liquidity, enable interoperability, and provide transparency to the entire digital ecosystem in WAEMU (West African Economic and Monetary Union.”

The Marshall Islands: SOV

Marshall Crypto SOV

The small country located in Oceania already adopted a national cryptocurrency known as SOV – for Sovereign. The country has a population of about 59,000 people as of 2020. It has a close relationship with the US and has been using the US dollar as its official currency.

However, since March 2018, the country went the way of cryptocurrency, implementing SOV as the legal tender. SOV’s maximum supply will cap at 24 million to prevent inflation.

The island’s government passed a Declaration and Issuance of the Sovereign Currency Act, effectively making the currency the national tender. Speaking to Reuters at the time, minister-in-assistance to president David Paul said: “As a country, we reserve the right to issue a currency in whatever form it is, whether in digital or fiat form.”

He added that SOV would be designed collaboratively with Israel-based fintech company Neema, and would be publicly released through an Initial Coin Offering. CEO Barak Ben-Ezer told the media that the currency is “completely decentralized and the government cannot control the money supply…”

China: Digital Yuan

Chinese Crypto

China is known to have somewhat of a love-hate relationship with cryptocurrency. It has previously banned crypto exchanges and crypto-related platforms. It has also previously clamped down on social media posts that talk about Bitcoin. In October 2019, however, the country suddenly took a U-turn and started doing the exact opposite. Any social media posts calling crypto a scam were the ones that were being cracked down upon, instead.

Around the same time, the country introduced a digital currency across four cities as a part of a test program on a homegrown crypto. These cities were Shenzhen, Suzhou, Chengdu, and Xiong’an. The idea was to assess the currency’s functionality.

The launch followed nearly four years of research by China’s central bank. The currency has no official name yet and is dubbed “DC/EP” for “digital currency/electronic payment.” The currency takes after some of the core features of crypto but excludes the touted anonymity and decentralization.

Nonetheless, China’s authoritarian government may not be exactly warm and fuzzy towards the idea of a decentralized currency. A centralized one would be easier to monitor, track, and keep in check.

Closing Thoughts

The idea of a national cryptocurrency is no longer a far-fetched concept. While some countries have flatly rejected the idea of cryptocurrency alone, others have taken the entirely opposite approach. Are we going to see more countries following the path of these countries? Frankly, governments and cryptocurrency have always been a touchy topic. We can only watch it.

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Crypto Daily Topic

Crypto Glossary: Most Popular Crypto & Blockchain Terms and Phrases

The crypto and blockchain worlds are oftentimes referred to as cryptoverse or blockchain verse for simply being an independent and relatively new financial ecosystem. From the concepts to the unique language, it can be overwhelming to play catch up with all the words and phrases, especially if you are new to the trade. For instance, what is a blockchain? What does “HODL” or “mooning” mean?

Cryptocurrency Word Cloud | Forex Academy

The crypto and blockchain worlds are oftentimes referred to as cryptoverse or blockchain verse for simply being an independent and relatively new financial ecosystem. From the concepts to the unique language, it can be overwhelming to play catch up with all the words and phrases, especially if you are new to the trade. For instance, what is a blockchain? What does “HODL” or “mooning” mean?

The crypto and blockchain worlds are oftentimes referred to as cryptoverse or blockchain verse for simply being an independent and relatively new financial ecosystem. From the concepts to the unique language, it can be overwhelming to play catch up with all the words and phrases, especially if you are new to the trade. For instance, what is a blockchain? What does “HODL” or “mooning” mean?

This crypto glossary helps you familiarizes yourself with the most common terms and phrases that you will almost certainly come across as you navigate the world of cryptocurrency and blockchain.

We cover everything – from the meaningful ones to the slang, and anything in between – here: 

51% Attack

A 51% attack is an attack on a blockchain involving a party taking control of over 51% of the network’s hash rate. This would render the blockchain vulnerable, allowing the party to double-spend coins, hijack transactions, prevent the verification and confirmation of transactions, and stop miners from completing transactions.

Block Height

Block height is the numeric reference to any block on a blockchain. The first-ever block is referred to as block height 0.

Halving

The Bitcoin protocol is programmed such that only 22 million coins will ever exist. To control the release of new coins, mining rewards are slashed in half after every 210,000th block. In the beginning, the reward for mining a new block was 50 BTC. That was halved to 25 in 2012 and again to 12.5 in 2016. It fell again to 6.25 a week ago. After the 64th’ halving’, no more bitcoins will be released. That’s estimated to happen around 2140.

HODL

HODL is a meme in the crypto sphere that refers to holding onto your crypto rather than selling. It came into existence in 2013 when a drunk crypto trader wrote ‘hodl” rather than ‘hold’ on the bitcointalk.org forum. See the original thread here.

Lambo

‘Lambo’ for Lamborghini is a popular phrase in crypto lingo. It symbolizes the ultimate dream for a crypto trader: to be rich enough to afford a Lamborghini!

Mooning

This refers to the phenomenon of a cryptocurrency shooting up massively in price, seemingly out of nowhere. It was coined in 2017 when this was a regular trend. The entire crypto market ballooned from $15 billion around January to a jaw-dropping $600 billion by December. Ripple benefited the most from the boom, gaining by 28,963% over the period.

Satoshi

Satoshi is the smallest unit of Bitcoin. It is the hundredth millionth of a single bitcoin (0.00000001).

Flippening

Flippening is when another cryptocurrency will topple Bitcoin from the top of the crypto market. Ethereum and Litecoin have been touted to be potential ‘flippeners.”

Whales

These are individuals or entities with significant holdings of a cryptocurrency. If they sell their holdings, the market will feel the effect – just as whales displace water when they move.

Exit Scam

This is a crypto scam in which scammers launch a promising crypto project. They will then raise funds through an ICO. The business will then exist for a while, all while demonstrating activity and progress in the roadmap. Soon, however, it vanishes into thin air, leaving investors in the lurch.

Shitcoin

This is a worthless cryptocurrency that has mostly failed to live up to initial craze or was never a big deal to begin with—a valueless or a copycat currency.

Cryptojacking

Cryptojacking refers to the act of a hacker using malware to utilize your computer to stealthily mine crypto.

Choyna

A distortion of China, a country with a love-hate relationship with cryptocurrency and one with the largest number of miners.

Shill

Shill refers to an individual who underhandedly promotes a digital currency project while pretending no to, and who is potentially paid to do so.

Weak Hands

Weak hands refer to inexperienced traders who make emotional trading decisions. These traders will usually sell whenever the market takes a bearish trend or in the event of bad news. It’s the opposite of strong hands who in turn, are uber-good in HODLing.

Arbitrage

This is the difference in the price of a cryptocurrency in different exchanges. It allows savvy traders to buy crypto at a lower price on one exchange and sell it at a higher price at another, making a profit.

Bug Bounty

This is a reward offered by software developers for people to identify software vulnerabilities or bugs in code. This allows developers to identify and eliminate any errors in a project before it’s officially released.

DApp

DApp or ‘decentralized app’ is an application that operates in a peer-to-peer, decentralized environment. It’s not controlled by third-parties, and it cannot be censored. Such an application is the polar opposite of applications such as Facebook and Google, which are institutionally-owned and thus controlled by third parties. Examples of DApps included decentralized Twitter alternative Mastodon, popular cat game Cryptokitties, and crypto exchange Etherdelta.

Fork

A fork is essentially a blockchain splitting into two branches. This can happen for any of several reasons: security update, a scalability update, part of the community wanting to go another direction, and so on. There are two types of forks. A soft fork is compatible with earlier versions of the chain. A hard fork is a radical and permanent offshoot that’s not compatible with earlier versions.

Mainnet

Mainnet is short for ‘main network’, and it refers to the actual network on which transactions and other operations will take place. A mainnet is the opposite of a testnet, on which trials are run.

Airdrop

This is a free distribution of tokens to a crypto community. The idea is to promote the project or to thank people for signing up.

Bitcoin Maximalists

These are people that are diehard Bitcoiners. Bitcoin maximalists believe with unwavering conviction that the currency is the most superior cryptocurrency and the only one worth caring about.

ICO

An ICO is short for ‘Initial Coin Offering’ and refers to the process of a cryptocurrency project raising funds by selling crypto. Interested investors can then buy the coins. ICOs are very much like Initial Public Offerings (IPOs) through which traditional companies raise money by floating shares and stocks.

Mining

Mining is the process of verifying, confirming, and adding transactions to the public ledger. The cryptographic nature of cryptocurrencies means this process will require massive computational resources. People who provide these resources are called miners. In exchange, a blockchain network rewards miners with crypto coins or part of the transaction fee for the services.

Permissioned Ledger

Permissioned ledger is another term for private ledger. These are blockchains in which only authorized participants can access and initiate transactions. Permissioned ledgers are mostly found in private organizations since they can’t store sensitive data on public blockchains such as the Bitcoin blockchain.

Private Key

A private key in cryptocurrency is like your bank passcode. It allows you to access, send, or withdraw coins. If someone gets their hands on your private keys, they can access your funds. Crypto transactions are irreversible, implying that if someone withdraws your funds, they’re gone forever. It also means you have to take every available safeguard to protect your private keys.

Public Key

A public key is an address through which you receive cryptocurrency, either from people or a crypto exchange. A public key is very much like your bank account through which people send you money. Sharing your public key does not compromise your funds.

Cold Storage

In the context of cryptocurrencies and the blockchain network, cold storage refers to the keeping of your private keys offline. This makes it immune from hacking, malware, phishing attacks, and other online vulnerabilities. Cold storage is by far the safest option for storing your crypto funds. It’s highly recommended to keep especially large crypto holdings in cold storage.

Blockchain

A blockchain is a cryptographically secured, distributed, immutable, and time-stamped series of data records. There are two types of blockchains – public and private. Public blockchains are publicly available, and anyone can participate. The Bitcoin and Ethereum blockchains are examples of public blockchains. Private blockchains are owned and managed by private enterprises.

Altcoins

Altcoins is the name given to all other cryptocurrencies apart from Bitcoin. An altcoin can have its own independent blockchain or be built atop a blockchain that supports smart contracts such as Ethereum, Stellar, and NEO.

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Crypto Daily Topic

Why You Shouldn’t Join Crypto Signal Groups And What To Do Instead

The allure of cryptocurrency has drawn millions into the craze. The stories of people becoming millionaires overnight during the 2017 boom are too irresistible. As such, it’s easy to have an unrealistic view of how people make money off crypto trading.

Crypto Trading Signals |Forex Academy

The allure of cryptocurrency has drawn millions into the craze. The stories of people becoming millionaires overnight during the 2017 boom are too irresistible. As such, it’s easy to have an unrealistic view of how people make money off crypto trading.

The allure of cryptocurrency has drawn millions into the craze. The stories of people becoming millionaires overnight during the 2017 boom are too irresistible. As such, it’s easy to have an unrealistic view of how people make money off crypto trading.

When getting started with crypto trading and digging for helpful resources, you’ll likely come across “signal trading groups.” These groups promise to help you maximize on your trades by providing you with winning buy/sell signals. However, you need to take these promises with a grain of salt.

What are Crypto Signals Groups? 

These are communities/groups where the creators publish live trades that members can use to enter into trades. The essence of a crypto signal group is for the members to ease into crypto trading by following these guides/signals that dictate to them where and when to buy crypto and when to rope in profits.

Crypto signals groups can be paid or free. Usually, paid crypto groups offer deeper insights, more regular signals, and in some cases, trading advice. Free groups, on the other hand, are more likely to merely churn out signals without much thought paid to the process.

Crypto Signals | Forex Academy

In an ideal environment, a crypto signal group should guide traders to make profitable decisions backed by actual market analysis and accurate interpretation of market trends. Instead, we have unoriginal info being packaged as new, overly expensive subscriptions not worth the penny, and other undesirable practices around the art that should have you questioning the need to join.

Here are some compelling reasons why you shouldn’t join crypto signals groups.

1. Targeting of the Inexperienced

Usually, crypto signal groups target beginner traders who are still looking to gain a foothold in the world of crypto trading. Since they’re still familiarizing themselves with even the tiniest of details, they’re willing to fork out cash for the promise of handholding.

But that’s hardly the problem. The thing is, these traders are likely to accept any and all information coming their way and trust it as the gospel. One of the surest things in crypto trading is doing your own research and verifying information. If you’re not doing this, you’re risking money. In crypto trading, no one can look out for your interests better than you can.

2. No Learning Here

Some crypto signals groups, especially paid ones, provide in-depth analysis of crypto trends, what’s triggering what in the crypto world, and how you can better optimize your knowledge for smart decisions.

But these groups are the exception, not the norm. Most crypto signal groups typically spoon-feed traders, who then never get to learn why certain calls were made, why the crypto market is moving a certain way, and how to base future trading decisions.

3. Bank-breaking

As we’ve noted before, some crypto signal groups are free. But for the most part, these groups are low-effort.

Paid groups, for their part, cost money. Some go for up to hundreds of dollars per month. Most crypto traders are just trying to make money. If they follow trade signals blindly, it can lead to their entire savings going up in smoke.

4. Pump and Dump Scams

Some crypto signal groups are run by individuals who do the right thing. Others are pump and dump scams. Usually, the group leader will hype up some low-cap coin and sing praises of how it’s going to be the next big thing (pumping). This will cause the coin’s demand to shoot up as more people rush to invest in.

After the price soars, the group leader will then offload their holdings. This is what’s called ‘dumping’. After offloading, the coin floods the market again, losing value. Investors will then be left with a worthless coin in their hands, one which they might never get an opportunity to offload profitably.

5. Work of Copy

Most of the time, the ‘novel’ innovation presented in these groups is anything but novel. On the contrary, many of the group leaders of these groups are actually following other crypto signals groups. Then, they will gate keep the best of the info and present the rest.

Other group leaders will relay buy and sell signals without a single shred of analysis on how they arrived at a particular decision. They make it look like the market is ripe for amazing profits anytime. The truth could not be more different.

6. Manipulation and Lies

Quite often, these groups will say anything just to get more subscribers. But without you going back to their posts and comparing them with actual market figures, it’s very easy to get duped. It’s not uncommon to see signal groups making unrealistic claims about the massive profits they stand to gain, while in actual sense, they’re manipulating figures.

7. Copycatting 

It’s exactly as it looks like. The information these groups are peddling – you too can find it where they’re sourcing it from. Many of the most successful traders post their analysis on forums like Facebook and Twitter.

The thing is, this info is freely available. Its originators aren’t charging for it, so why should you? Moreover, when you go to the original source, you get to learn so much more than just responding to signals.

8 Here Today, Gone Tomorrow

Again, there’s no catch here. Most of these group leaders are in it for the money, and guess what? There’s the chance they’ll be gone as soon as they figure they’ve made enough of it. And, of course, if they disappear, chances are high the group will too and with it, your money.

What You Can do Instead

Instead of joining crypto signal groups, which are rarely worth the money, what can you do instead? One of the surest strategies you can look into is social trading. Social trading is not a new thing by any means. Going back centuries, people have always looked upon each other to be guided on critical decisions. By listening and taking cues from others, we can always make wiser decisions on many things.

Social Trading | Forex Academy

The same applies to modern trading. Experienced traders make better decisions than beginners primarily due to their exposure in the game and continued mastery of the skill. Some platforms such as eToro allow traders to leverage the knowledge of experts in the community so as to improve on decision making and portfolio and asset choices. Social trading can either be copy trading or relying on social forums for trade ideas.

  • Copy Trading 

Copy-trading allows inexperienced traders to copy the moves of more experienced and seasoned traders. This strategy gives traders the opportunity to participate in the markets when they don’t have the time or experience to do so.

New traders get to rely on others’ experience while acclimatizing to the trade. They also get the chance to learn new strategies from others and, in the process, become better traders themselves.

  • Social Forums 

Social Forums are avenues where you can talk to other traders and exchange trading ideas and knowledge off each other. These forums are on platforms such as Reddit, Telegram, Twitter, and Facebook. Other forums were made with the sole goal of building reliable crypto communities.

Topics in these communities are exclusively dedicated to discussing trends in crypto, trading, market movements, mining, and other crypto trading technicalities. Some of the most popular crypto forums include Bitcointalk.org, Altcoincommunity.net, Mastersofcrypto.com, and Cryptocurrencytalk.com.

Final Thoughts

The ideal crypto group signal should be reasonably priced, provide original and profitable ideas, and provide insightful market analysis. Even then, these kinds of groups are not necessary for your path as a crypto trader. Following the moves of actual industry experts and learning from the insights of fellow traders can prove to be a far more fruitful approach.

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Cryptocurrencies

Bitcoin Mining Pools: Here Is All You Need To Know About Bitcoin Mining Pools

Any new Bitcoin user will tell you they’ve heard words like “miners,” “mining pools,” and “ASICs” being thrown around. But it’s not immediately clear what these terms mean, or whatever role they play in the Bitcoin ecosystem.

Bitcoin mining pools | Forex Academy
Photo by Dmitry Demidko on Unsplash

Any new Bitcoin user will tell you they’ve heard words like “miners,” “mining pools,” and “ASICs” being thrown around. But it’s not immediately clear what these terms mean, or whatever role they play in the Bitcoin ecosystem.

Any new Bitcoin user will tell you they’ve heard words like “miners,” “mining pools,” and “ASICs” being thrown around. But it’s not immediately clear what these terms mean, or whatever role they play in the Bitcoin ecosystem.

On the other hand, we have aspiring Bitcoin miners who are usually torn between going solo and joining a mining pool and are yet unacquainted with the latter option.

In this guide, we delve into the intricacies of Bitcoin mining pools and answer some of the most burning questions surrounding the topic.

What is Bitcoin Mining? 

Bitcoin mining is the process of adding new blocks and transactions on the Bitcoin public blockchain. It involves miners guessing or playing with a random string of numbers and alphabets (known as a hash) until they arrive at the correct hash for the next block. A ‘block’ is a file that consists of transactions that have to be verified before being added to the blockchain.

Bitcoin miners utilize mining equipment known as “application-specific integrated circuits” (ASICs) that are designed to make a massive number of guesses per second. In the early days of Bitcoin, anyone could mine bitcoins on their PC from the comfort of their home. However, as the network became uber-popular and more miners joined the network, the mining difficulty (how hard it is to find new blocks) increased, rendering the average computer unsuitable for mining bitcoins.

What’s a Mining Pool?

What is Bitcoin Mining pool

A mining pool is a group of miners who come together and combine their computational power in a bid to find new blocks faster. With the combined hashing power, the odds of finding new blocks are multiplied. If a pool succeeds in finding a block, the block reward is shared among the pool participants according to how much processing power each contributed. The more processing power a miner contributed, the more block rewards they will receive.

What is Block Rewards? 

In Bitcoin mining, a block reward is what the bitcoins miners receive for discovering new blocks. This reward is halved after mining 210,000th block, which is roughly every four years.

In the beginning, mining a block got a miner rewarded with 50 BTC. That figure was halved into 25 BTC in 2012. It was then halved again in 2016 to 12.5 blocks. It was again halved a few days ago to 6.25. This was Satoshi Nakamoto’s idea of avoiding inflation.

Mining Pool Methods 

Bitcoin mining pools do not have a standard operating procedure. Each pool has a different approach to the sharing of block rewards, and so on. Still, many of the most popular pools have certain protocols in common. Let’s get a look at the most common below:

  • Proportional mining pools: In these pools, miners earn shares up until the pool finds a block, after which each miner receives block rewards in proportion to how much shares each has found.
  • Pay-per-share pools: These pools operate a lot like the proportional mining pools, only this time, a miner is guaranteed of a payout regardless of when the pool collectively finds a block. Miners are paid with the existing balance in the pool, and they can cash out at any time.
  • Pay On Target: In these pools, a miner is paid based on the difficulty of work that they plough back to the pool, rather than the difficulty served by the pool itself.
  • Capped Pay Per Share: This is a reward system through which miners receive as much as possible from discovering blocks while also ensuring the pool never goes bankrupt.
  • Bitcoin Pooled Mining: This system entails giving more weight to recent shares than to older shares. Each new round starts when a new block is discovered, and not before. This reduces the chance of miners switching pools during a round so as to maximize profits – which is considered cheating.

Why Mine Bitcoin in a Pool? 

As we’ve noted before, Bitcoin mining is a game of chance. Thus, it pretty much depends on luck. Hence, even if a miner controls a significant amount of computational power, it doesn’t mean they’ll find blocks proportional to that power. Instead, today they might find three blocks, tomorrow none, the next day one, and on and on.

Mining in a pool allows miners to combine their hash power, so they represent one large mining machine. With the combined hashing power, it’s easier to find the right hash sooner. This way, miners can get a more regular and consistent pay instead of a sporadic and less certain one.

What are the Disadvantages of a Mining Pool?

Mining pools represent a more sustainable income for miners since it multiplies the odds of them finding new blocks. At the same time, it has a downside for both miners and what cryptocurrency stands for.

When a miner participates in a pool, they relinquish some of their power and autonomy. They’ve got to adhere to the terms and conditions of the pool, even if unfavorable.

They also have to share block rewards, meaning they earn significantly less than if they received the entire block reward by themselves.

Another drawback of mining pools is that some mining pools have an enormous amount of combined hash power to the extent of dominating much of the Bitcoin mining process. In a way, this centralizes the Bitcoin mining protocol, which betrays one important tenet of cryptocurrency: decentralization.

How to Choose a Bitcoin Mining Pool

Before you sign up for a Bitcoin mining pool, do a background check, and see whether it works for you. These are some of the factors you need to look out for:

1. Infrastructure Compatibility

Every pool has its own requirements that miners must meet before being incorporated into the pool. Before getting started with any pool, check the following:

  • Whether your mining equipment is compatible with the pool requirements
  • Whether your mining software is supported by the pool
  • Whether your internet connection meets the minimum bandwidth required by the network

2. Task Assignment Mechanism

Any decent pool should have an algorithm that enables it to distribute tasks evenly to all participants without discriminating against the ones with less powerful devices.

3. Transparency

How transparent is the pool operator? For instance, is the hash rate declared by the pool the actual hash rate? Are the payouts being manipulated in some way? Some pools have a real-time dashboard that displays activity, eliminating any cause for doubt. You want to join such a pool.

4. Payment Threshold and Frequency

This has to do with the type of mining hardware you have. High-end mining devices mean more computational power and hence more and frequent earnings for you. Hence, if you have low-end devices, best to avoid pools that make payments based on the output threshold.

5. Pool Stability and Security

Before joining a pool, check out its commitment towards security. Does it offer a secure connection? Is it vulnerable to the all-common denial of service attacks? Is it sufficiently robust against potential attacks?

6. Pool Fee Structure

The pool fee is the amount you pay for utilizing a mining pool’s services. Some pools charge no fee at all while others charge a nominal fee. Others incorporate the fee in the payout. Others offer free entry, after which they’ll start charging after a given period. Finally, some pools will require you to run the software on your own device instead of on their servers – which is usually expensive for the miner.

What are some of the Best Mining Pools?

After Bitcoin exploded, the currency’s mining industry is proliferated by all manner of mining pools. Some have made a name for themselves for having a winning combo of certain features. Let’s take a look at a number of them:

  • F2Pool

Launched in 2013, Chinese-based F2Pool uses a stratum mining protocol – a Bitcoin mining protocol that facilitates improved mining and efficiency. F2Pool also supports Litecoin, Ethereum, and Zcash mining and features three languages (Traditional Chinese, Simplified Chinese, and English) to accommodate a more diverse background of miners.

  • com

Launched in 2015, BTC.com is a mining pool owned by Bitmain, which is a dominant player in the ASICs manufacturing industry. BTC.com also runs on a stratum mining protocol and supports its own wallet known as the BTC.com wallet. The site supports English and Chinese.

  • AntPool

Also owned by Bitmain, Antpool is one of the most dominant mining pools in the Bitcoin mining space. Alongside Bitcoin, the pool also supports Bitcoin Cash, Litecoin, Ethereum, Dash, Siacoin, ZCash, and Ethereum classic. Antpool supports tens of languages, including English, Amharic, Zulu, Welsh, Urdu, Thai, Bosnian, Arabic, and Turkish.

  • ViaBTC

Launched in 2016, ViaBTC is relatively new in the industry but has managed to claw its way to the top. The pool uses a stratum mining protocol and also supports merged mining. ViaBTC supports the mining of other cryptocurrencies such as Bitcoin Cash, Litecoin, Ethereum Classic, Dash, ZCash, and Monero.

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Cryptocurrencies

Zilliqa Blockchain: What Is Ziliqa And How Is It Turning Blockchain Upside Down

Anyone that’s transacted on the Bitcoin blockchain is aware of how long transactions take to be confirmed. In fact, Bitcoin transactions can take anything from 10 minutes to one day, depending on traffic. One of the things a digital currency is supposed to accomplish is speed. This is one goal that’s yet to manifest for Bitcoin and, indeed, the majority of blockchains.

Anyone that’s transacted on the Bitcoin blockchain is aware of how long transactions take to be confirmed. In fact, Bitcoin transactions can take anything from 10 minutes to one day, depending on traffic. One of the things a digital currency is supposed to accomplish is speed. This is one goal that’s yet to manifest for Bitcoin and, indeed, the majority of blockchains.

Anyone that’s transacted on the Bitcoin blockchain is aware of how long transactions take to be confirmed. In fact, Bitcoin transactions can take anything from 10 minutes to one day, depending on traffic. One of the things a digital currency is supposed to accomplish is speed. This is one goal that’s yet to manifest for Bitcoin and, indeed, the majority of blockchains.

Many blockchains are remodeled after Bitcoin’s blockchain, one way or another. The result is the same, slow transactions and waiting times. Zilliqa changes this by deconstructing the current blockchain concept.

Let’s delve into the interesting way that it does this.

What’s Zilliqa?

Zilliqa is a scalable blockchain with the ability to process thousands of crypto transactions every second. This is made possible by its adoption of the sharding technique. Sharding is by no means a new concept, nor was it invented for blockchain. The technique has been around for a while and is majorly used to partition databases to make workloads more manageable.

Blockchain’s Scalability Problem

The current blockchain, as we know it, uses the consensus mode of transaction confirmation that has faced scalability issues since its inception. This is due to thousands of nodes in any blockchain network that makes it harder to reach consensus. The speed of a network is inversely related to how large it is. The bigger the network, the more nodes that have to reach a consensus on transactions, slowing their confirmation.

Consider Bitcoin’s blockchain. As more users use the network, confirmation time is slower, and the transaction fee increases. Moreover, those who want faster confirmation are forced to pay more in order to get first priority. This is not only expensive, but it also goes against the democratic nature and accessibility-for-all of cryptocurrency.

The Ethereum blockchain, the second most popular, also has an inherent scalability problem. This is best illustrated by the Cryptokitties fiasco, whereby the game’s developers had to increase the transaction fees in order to at least reduce network congestion. This demonstrated how the network couldn’t handle massive amounts of traffic.

Right now, both Bitcoin and Ethereum, with their transaction throughput of 7 and 15 transactions per second respectively, are unable to compete with traditional payment systems such as Visa, which handles as much as 1,700 transactions per second.

The problem with proposed scalability solutions

Now, solutions that have been proposed for the blockchain scalability issue are not sustainable for the long haul. One of these is moving part of the transaction data off the chain. Others are increasing the block size so that consensus can be established for each round of transactions.

These are band-aid solutions that don’t fix the fundamental problem. The ideal solution would be overhauling the entire architecture so that the rate of nodes giving consensus is positively correlated with the network size.

Zilliqa’s Scalability Answer

Zilliqa proposes to solve this problem by re-imagining the entire blockchain from the ground up. This new model involves implementing a hybrid consensus that will grow the network’s throughput with every 600 new nodes that join.

Theoretically, for every 600 new nodes, Zilliqa’s throughput increases by dividing the work. In practice, an ever-increasing network (let’s say 1 million nodes) can present broadcast issues.

However, no network as yet has reached 1 million nodes. Both Bitcoin and Ethereum currently have tens of thousands of nodes. Even with that number, they’re still only able to process an average of 3-15 transactions per second (TPS). By contrast, with only 1800 nodes, Zilliqa has a throughput of 1218 TPS. When this number is doubled to 3,600 nodes, Zilliqa can handle up to 2, 488 TPS.

Zilliqa’s Sharding Protocol

So, what’s Zilliqa’s plan to achieve this scalability? It does this by utilizing a process known as sharding. The Zilliqa protocol divides the nodes on the network into groups of 600 each. Each group is called a shard. For instance, if a network has 2400 nodes, the nodes will be divided four times, with each group getting 600 shards.

Zilliqa Sharding_Forex Academy

So, as more nodes join the network, they are automatically distributed to create shards. Each shard will process a small part of each transaction. For instance, if there are ten shards on the network, each processes a tenth of the total transaction. Thus, the more shards you get, the more work you have, the faster the workload, and the faster the transaction throughput.

Every shard processes the transaction the parallel shard is working on. A parallel process is known as a ‘DS epoch.’ After every epoch, the blocks will come together and form a full block.

The DS Committee

Zilliqa has a “DS committee” that manages shard allocation. For each DS epoch, nodes are randomly selected to manage the shards. These nodes are the ones known as the DS committee, and they decide which shards the nodes are allocated to.

Finding Consensus: Proof-of-work and Byzantine Fault Tolerant Mechanism

Zilliqa utilizes a hybrid consensus mechanism that works as follows:

The first stage of the mining process involves proof-of-work (PoW). The PoW involves completing a hash to prove and establish identity, making it impossible for a bad actor to create multiple identities and overwhelm the network. After a node’s identity is proven, it’s assigned to a shard.

In the shards, Zilliqa applies a Practical Byzantine Fault Tolerance consensus (PBFT). Now, this mechanism has a finality, meaning the majority of the nodes in a shard must reach consensus on a mini-block. Once a block is verified by the shards and the DS committee, it becomes the only block that can be linked to the one before it.

Zilliqa’s Scilla

The Zilliqa team has developed a new programming language known as Scilla. Scilla is an intermediate-level language that separates the programming and communication aspects of smart contracts. It helps to differentiate between functional contracts compatible with Zilliqa’s blockchain, and state-dependent contracts that are not yet supported by Zilliqa.

Zilliqa Token

Zilliqa has a native token known as ZIL. ZIL token acts as an incentive for miners, gas for fueling smart contracts, and for covering transaction fees.

As of May 8, 2020, Zilliqa is trading at $0.006985 and ranks at #75. It has a market cap of $101,107,215, and a 24-hour trade volume of $23, 583, 984. A total of 10 billion ZIL tokens are in circulation. The coin has a total supply of 13 billion and a maximum supply of 21 billion. ZIL’s all-time high was 0.231489 on May 19, 2018, and its all-time low was $0. 002477 on March 13, 2020.

Who’s the Team Behind Zilliqa?

The Zilliqa team mainly comprises of people with a computer science background. CEO Xinshu holds a Ph.D. in Computer Science from the National University of Singapore. Chief Scientific Advisor Prateek Saxena holds a Ph.D. in the same field form the University of California, Berkeley. Head of Research Amrit Kumar has a Ph.D. from Université Grenoble-Alpes, France, as well as an Engineer’s diploma from Ecole Polytechnique, France.

The project’s advisory board comprises of notable figures in the blockchain sphere. These are Loi Luu, co-founder of Kyber Network; Vincent Zhou, founding partner of digital asset management firm FBG Capital; Nicolai Oster of Bitcoin Suisse AG, and Strong Hold Labs CEO – Alexander Lipton.

Where to Buy and Store Zilliqa

You can find Zilliqa at any popular exchanges, including Binance, Huobi, Coinbase Pro, Gate.io, Kucoin, BitFinex, Coinswitch, OKEx, and YoBitNet.

Zilliqa recommends the following trusted wallets for storing your ZIL: Ledger, Trust Wallet, Zillet, ZilPay Wallet, Infinito Wallet, Math Wallet, Atomic Wallet, Zil Cli, and the Zil Wallet. Different wallets exist in different forms, such as iOs, Android, web browsers, and hardware.

Final Thoughts

Despite the current proliferation of blockchains, Zilliqa managed to come up with a unique solution for a persistent problem in the blockchain. While many existing blockchains scramble to integrate sharding, Zilliqa has the headstart of implementing it from scratch. We can expect to see many more blockchains being launched with this technology in the future.

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Crypto Daily Topic

12 Best Crypto Wallet for iOS: The Most Secure Multicurrency Apps

About eleven years since we had the first cryptocurrency, the asset class is more popular than ever. Millions of people are using cryptocurrencies as a store of value, as a trading instrument, and still, others are using the asset class as an exchange of value.

Best Crypto wallets for iOS
Photo by Nab Visuals on Unsplash

About eleven years since we had the first cryptocurrency, the asset class is more popular than ever. Millions of people are using cryptocurrencies as a store of value, as a trading instrument, and still, others are using the asset class as an exchange of value.

About eleven years since we had the first cryptocurrency, the asset class is more popular than ever. Millions of people are using cryptocurrencies as a store of value, as a trading instrument, and still, others are using the asset class as an exchange of value.

Unlike traditional money, cryptocurrency does not exist on a physical medium; neither is it regulated or overseen by a central authority. Transactions are peer-to-peer, control is solely the owner’s, and the safety of your crypto is in your hands.

There’s also another caveat. Crypto transactions are irreversible, meaning once you hit the send button, the funds are gone for good. There’s also the not-so-small matter of digital currencies being a high target for hacking and other types of fraud.

Hence, potential crypto users need to find a reliable wallet that’s secure enough to guard their digital assets against these attacks. Other features to look for in a sturdy wallet are flexibility and the number of cryptocurrencies it supports.
However, it can be a tasking exercise rummaging through the web to look for a wallet that fits these and other relevant needs.

In this piece, we came up with a list of the best wallets in the market for iPhone and iPad users. Looking for an iOS crypto wallet? Read on.

1. Bread Wallet

Launched in 2013, the Bread wallet is a crypto wallet app. The app is one of the most popular crypto wallets and one of the easiest to use. Bread features a minimalist yet functional interface that allows you to send and receive crypto without much hassle.

You can purchase Bitcoin via the app using a variety of methods, including credit card, in-person at Bitcoin ATMs, or at the convenience store. Bread also allows you to convert Bitcoin into cash, Ethereum, or to any of multiple ERC-20 tokens.

Bread also runs a loyalty program called BRD rewards. When you hold tokens at BRD, you get a 50% waiver on all your in-app crypto trading fees.

2. Green Wallet

Launched in 2019, Green is a wallet that puts security at the forefront so that you don’t have to choose between security and convenience.

When setting up a Green wallet, you will be required to undergo a two-factor authentication process via SMS or Google Authenticator, and/or email. A two-step authentication process is also required for every transaction you carry out.

The wallet also does not store your private keys, encrypted or not. This gives you utter control over your crypto funds. Green also ensures complete anonymity for users by allowing them to sign up without KYC procedures and proceed to trade right away.

3. Coinomi

Coinomi is a crypto wallet that lets you safely store, manage, and interact with Bitcoin and other 1770+ crypto assets. Funds are secured with private keys and state-of-the-art cryptography, ensuring your crypto is always under water-tight security.
Coinomi also ensures user anonymity by not having KYC or due diligence procedures or transaction tracking. Also, it doesn’t link your identity to transactions or traces your IP address.

For those users willing to fork out a bit more cash, Coinomi offers more options such as multi-seed support, unspent transaction output (UXTO) control, and cold storage.

4. Jazz Liberty

Jazz Liberty allows you to send and receive Bitcoin, Ethereum, and 90 other cryptocurrencies. On Jazz, you can check your crypto balance anytime as well as track individual coins and their price changes over the last month up to the latest hour. This also includes updates on the performance of the top 100 coins and markets and market trends. You also get access to the latest crypto news and updates from the app’s news module.

Jazz also provides a 12-word mnemonic phrase that you can use to recover your private key, so you never lose your funds. The phrase also allows you to access your funds anywhere in the world, ensuring utter convenience.

5. Abra Wallet

Launched in 2014, Abra prides itself of simplicity, instant investment, and accessibility – with support available in more than 150 countries.

Abra allows you to buy, sell and exchange over 100 cryptocurrencies, including big hitters such as Bitcoin, Ethereum, Bitcoin Cash, Bitcoin SV, as well as other less known ones like Aeon, Ardor, BURSTcoin, and Blackcoin. To get started, simply deposit crypto or Fiat via MasterCard, Visa, or bank transfer.

Abra users can also move between various coins and tokens as well as withdraw to an external wallet at any time.

6. DropBit

DropBit allows you to “send and receive Bitcoin as easy as sending a text or tweet.” It calls itself the “Venmo for Bitcoin” – allowing you to send Bitcoin to friends via text message or Twitter, even if they don’t have DropBit or any crypto wallet at the moment.

DropBit also allows you to maintain anonymity in your transactions by ensuring server requests for sending addresses are signed by your wallet at a ‘derivative path’ unassociated with your Bitcoin address. DropBit also does not keep your contact(s) on their servers. Instead, it uses a cryptographic hash of your phone number when verifying transactions. And in case you lose your wallet, you just need to input your 12-word recovery phrase to recover your private key.

7. TrustWallet

Trust wallet is a multi-coin wallet that allows you to store Bitcoin, Ethereum, Tron, Binance Coin, XRP, and so on. You can instantly trade cryptocurrencies on Trust wallet, thanks to its seamless integration with both Binance Dex and the Kyber Network protocol.
Trust wallet also protects your privacy by keeping your private key only locally and surrounded by many layers of security.

The wallet also supports ERC20 tokens and BEP2 tokens for the Binance Chain. It also allows you to interact with decentralized applications (DApps) on its Web3 browser.

8. Edge Wallet

Formerly known as Airbitz, the Edge wallet allows you to store, trade, and buy dozens of cryptocurrencies. This includes the ability to swap one crypto for another, as well as buy crypto with Fiat.

Edge has also partnered with some of the top blockchain services around the world, e.g., Moonpay, Bitrefill, Wyre, and Safello, to enable you to purchase mobile top-ups, gift-cards, and other services.

Other notable features of Edge include a seed phrase backup feature, PIN code feature for added security, QR code support to allow you to spend funds, an estimation of transaction fees so you can account for every coin, the ability to add ERC-20 tokens and Segwit support for Bitcoin and Litecoin.

9. Copay

Copay wallet is an off-shoot of BitPay, a trusted crypto payment gateway for 10,000+ merchants and businesses around the world. It’s a non-custodial wallet app that’s easy to use, with support for Bitcoin and Bitcoin Cash.

Copay facilitates multi-signature use, allowing more than one user to use the wallet. You can also create multiple private keys in the same Copay wallet, e.g., one for you and another for your friend.

Other unique selling points of Copay include: 150+ Fiat currency denominations for conversion, multiple language support, email and push notifications, and QR code support.

10. Ledger Nano X

This is a wallet by industry favorite Ledger. Nano X features remarkable ease-of-use and flexibility while ensuring your crypto is protected with the highest level of security, with your private key tucked away in a certified secure chip. Ledger Nano is a hardware wallet and, thus, a cold storage wallet – the safest option for storing your crypto funds.

The wallet is Bluetooth enabled, which allows smartphone users to sync the device with the Ledger Live Mobile app to safely interact with your crypto from your smartphone.

11. Blockchain Wallet

Blockchain wallet is one of the most popular crypto wallets, available in 140+ countries, and featuring 25 languages. It currently supports Bitcoin, Bitcoin Cash, Stellar, and USD Digital (USD-D).

Blockchain wallet supports two-factor authentication for maximum security as well as a 12-word recovery phrase that allows you to access your funds even if you lose your wallet.

12. BitPay

BitPay is another wallet app under the purview of crypto-exchange BitPay. The wallet’s apparent simplicity and accessibility, along with its high-level security involving multisig and key encryption, have made it a favorite among crypto users.

BitPay currently supports Bitcoin, Bitcoin Cash, Ethereum, and other tokens. You can create multiple wallets on the wallet, meaning you can share your wallet with family or friends.

You also get to receive instant email and push notifications for any transaction, helping you stay in control of your funds at all times.

Final Words

When looking for a good crypto wallet, you’re looking for one that does more than hold your funds. You want security, privacy, options, and a good user experience. These wallets offer that, and more. As usual, before settling for any wallet, Do Your Own Research; look for user reviews, check its security history, and so on. As well, choose a wallet that suits your personality.

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Cryptocurrencies

Exodus Wallet Review 2020: Is it safe & What are its Fees?

Despite launching its services as recently as  2016, the Exodus Crypto wallet has gained a lot of popularity mainly because it supported multiple currencies and in-app exchange. The crypto wallet is a late entrant into the crypto space, which has mastered the common faults of the established crypto wallets and sought to improve on them. For instance, most crypto wallets that rival Exodus have paid too much attention to the security of their sites at the expense of ease of use. This software wallet seeks to address this by providing one of the easiest sites to use. 

Despite launching its services as recently as  2016, the Exodus Crypto wallet has gained a lot of popularity mainly because it supported multiple currencies and in-app exchange. The crypto wallet is a late entrant into the crypto space, which has mastered the common faults of the established crypto wallets and sought to improve on them. For instance, most crypto wallets that rival Exodus have paid too much attention to the security of their sites at the expense of ease of use. This software wallet seeks to address this by providing one of the easiest sites to use. 

Despite launching its services as recently as  2016, the Exodus Crypto wallet has gained a lot of popularity mainly because it supported multiple currencies and in-app exchange. The crypto wallet is a late entrant into the crypto space, which has mastered the common faults of the established crypto wallets and sought to improve on them. For instance, most crypto wallets that rival Exodus have paid too much attention to the security of their sites at the expense of ease of use. This software wallet seeks to address this by providing one of the easiest sites to use. 

In this review, we look at these Exodus crypto wallet features and benefits in detail. We’ll also vet some crucial aspects of the crypto wallet like safety, cryptocurrencies supported, and fees.

Exodus Wallet Key features

Versatile design: One of Exodus crypto wallet’s biggest selling points is its highly versatile design.  It is one of a handful of crypto wallets that allow for the full customization of the user interface, including changing theme colors. The information is also displayed in a well-thought-out, organized, and easy-to-use manner.

Mobile app available: Exodus started out as a desktop wallet but has since launched the Exodus crypto wallet app. It has all the features of the Exodus desktop wallet safe for portability.

Pairs app and Desktop apps: The software wallet ensures that you don’t have to create separate user accounts for your desktop and mobile apps. You can easily pair them and gain absolute control over your digital asset portfolio both at home or office behind your desktop and on the smartphone while on the move.

Features a built-in exchange: Most crypto wallets are stand-alone, forcing you to register with two separate entities – the exchange and wallet provider. Exodus, on the other hand, provides you with both a secure wallet and a built-in exchange featuring all the popular coins.

Compatible with popular OS: The Exodus desktop app is available for all types of operating systems. From macOS to Windows and even Linux. 

Compatible with Hardware wallets: Exodus is also compatible with some of the most popular and highly secure hardware wallets like Trezor. Integrating your Exodus app with a hardware wallet not only adds an extra security layer over the wallet but also exposes you to 1000+ coins.

Features a portfolio tracker: Most wallets have fallen short of the investment and trade aspect of crypto trading. Exodus hopes to change this by providing wallet users with a portfolio-tracking tool that helps them keep track of their digital assets in real-time.

Lite wallet: Exodus is a lite crypto wallet, meaning it doesn’t download the entire blockchain to your phone or desktop. As such, it won’t drag the performance of either device.

Security features

Password protection: The Exodus crypto app is password protected. You will create the password during account creation, and you will need to provide it every time you want to log into your account or authorize a transaction.

Recovery phrase: In case you forget the password or lose your phone, you can still recover your Exodus crypto wallet account and private keys therein, if you have the recovery phrase. This is a 12-word seed provided to you during account creation.

Semi-Open sourced protocol: Exodus has also open-sourced the most crucial parts of its wallet protocol. Most of the open-sourced aspects of the wallet relate to security, but it holds onto proprietary rights for most of functionality and user interface designs.

Anonymous trading: You don’t need to complete a user profile to open an Exodus crypto wallet. Neither do you need to confirm and verify your identity before making a transaction. The fact that Exodus will only support crypto-to-crypto exchanges leaves much room for anonymous trading.

Biometric Touch and Face ID authentication: Exodus crypto wallet is one of the few web-based crypto wallets that have a biometric security system. You can use the Face ID as well as Touch ID to access your wallet.

Currencies supported

Exodus crypto wallet currently supports up to 102 cryptocurrencies. Among them, the most popular coins and tokens like Bitcoin, Bitcoin Cash, Litecoin, Dash, Ethereum, Ethereum Classic, Ripple, Tether USD, True USD, and more. Integrating it with popular hardware wallets like Trezor or Ledger Nano also boosts the number of currencies you can access.

The wallet company is continually updating its list of supported tokens. Their full and updated list of supported currencies is accessible from their FAQ section, under ‘Assets’ and ‘Supported Assets and Links.

Exodus Wallet cost and other fees

You will not be charged a fee to download, install, and interact with the Exodus crypto wallet. You will nonetheless be charged a small transaction fee when you send coins from the Exodus wallet to another or transact within the Exodus built-in exchange. The transaction fee for both cases varies depending on the transaction amounts.

Setting up the Exodus Wallet:

How to install Exodus Wallet:

Step 1: Download the Exodus desktop app on the Exodus website. The smartphone app is available at the Android and iOS app stores.

Step 2: Install the app, during which you will be required to set up the crypto wallet password.

Step 3: After verifying the password, Exodus will provide you with a 12-word recovery seed phrase. Copy the seed phrase or write it down and store it in a safe place offline

Step 4:  Though not advisable, you can also choose to use your email as the backup for your exodus wallet.

Step 5: Proceed to the app customization part where you get to change such factors as the app themes or the base currency for your portfolio.

Step 6: You are now set to start receiving and sending coins and tokens.

Sending and receiving coins:

To receive funds into your Exodus Wallet:

Step 1: Log in to your wallet

Step 2: Click on the receive icon, and the app will display all the available wallets

Step 3: Click on the wallet of the cryptocoins you wish to get the wallet address and QR code that you can send the sender.

To send payments from your Exodus Wallet:

Step 1: Log in to your Exodus crypto wallet

Step 2: Click the wallet icon on the left side of the desktop app screen.

Step 3: Scroll down to find the coin/token you would like to send and hit the ‘Send’ icon

Step 4: Enter the recipient’s address and the amount you wish to send and hit send.

Step 5: On the confirmation window that appears, check if the wallet address and amount are correct and send

Exodus Wallet hardware wallet pros and cons:

Pros:

  • It has multiple security features, including an email and offline backup for your wallet.
  • It’s a highly versatile wallet that’s compatible with multiple desktop and smartphone operating systems.
  • The desktop/mobile app integration makes it easy to access your portfolio while on the move.
  • The app is highly customizable and easy to use and thus beginner-friendly
  • Its compatibility with hardware wallets gives it a security boost.

 Cons:

  • One may consider their transaction fees to be relatively high.
  • The wallet doesn’t support the more secure two-factor authentication feature.
  • Doesn’t support crypto-to-fiat transactions

Exodus Wallet compared to competitors

In comparing Exodus to both hardware wallets like Trezor or Ledger Nano and online crypto wallets eToro and Coinbase, there are clear differences. The hardware wallets beat Exodus wallet hands-down when it comes to keeping your private keys secure. For instance, unlike Exodus, which only has limited security features and no two-factor authentication, hardware wallets have multiple security layers like keeping your keys offline under passcode. Their devices also have buttons that must be long-pressed to authorize transactions.

The web-based crypto wallet is not any different from most online and exchange-backed crypto wallets like eToro. They serve the same purpose and have pretty similar features. But in addition to making it possible to store private keys offline or copying them on a piece of paper, Exodus has gone a step further and introduced the face and Touch ID features.

Customer support:

Exodus crypto wallet maintains a responsive customer support service that’s available over via the live chat option on the company website. Similarly, wallet users can access help on the site’s FAQ page or by contacting the support team via different social media platforms.

Verdict: Does Exodus Wallet live to its reputation?

Exodus cryptocurrency wallet is a newcomer, and much of this project is still a work in progress. The wallet has already hit impressive milestones in consistent security upgrades and the incorporation of newly supported currencies. Moving forward, one can only expect the wallet to increase the number of its security features and measures taken to keep the wallet contents safe. It is our opinion that Exodus cryptocurrency wallet is appropriate for use by beginners and active traders looking for an online wallet that’s supportive of fast transaction processing.

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Crypto Daily Topic

Ripple Payment Network: 11 Popular Stores and Brands that Accept XRP in 2020

Ripple arguably is one of the most popular cryptocurrencies and the third-largest by market capitalization. The blockchain network is, however, best known for its facilitation of ultra-fast and near-instant cross-border money transfers through its real-time gross settlement system (RTGS). Here, transactions are powered by the Ripple (XRP) token, which acts as the mediator between currencies.

Ripple arguably is one of the most popular cryptocurrencies and the third-largest by market capitalization. The blockchain network is, however, best known for its facilitation of ultra-fast and near-instant cross-border money transfers through its real-time gross settlement system (RTGS). Here, transactions are powered by the Ripple (XRP) token, which acts as the mediator between currencies.

Ripple arguably is one of the most popular cryptocurrencies and the third-largest by market capitalization. The blockchain network is, however, best known for its facilitation of ultra-fast and near-instant cross-border money transfers through its real-time gross settlement system (RTGS). Here, transactions are powered by the Ripple (XRP) token, which acts as the mediator between currencies.

Apart from playing that role, what else is Ripple used for? If you hold Ripple, where else can you spend it?

It turns out, you can spend Ripple to buy goods and services from many places around the world.

For instance, Spend, a company that provides worldwide banking solutions, now allows Ripple enthusiasts to pay with XRP via its Spend Wallets in 40 million+ locations in 180 countries.

In this article, we take a look at some of the places that accept Ripple; from apparel, to technology, to automobiles, to coffee, to privacy-oriented phone companies.

1. Digitec Galaxus

Galaxus is the largest online retailer in Switzerland, selling everything between IT products and consumer electronics in beauty, gardening, toys, sports, and leisure, office, pet supplies, and more categories.

The store uses crypto payment gateway Coinify, which supports Ripple along with other cryptocurrencies such as Bitcoin, Ethereum, Bitcoin SV, Binance Coin, NEO, DASH, and NANO Litecoin. The transaction processing time is about 15 minutes, and Coinify charges a conversion rate of 1.5%. Galaxus accepts crypto for its online shop only.

2. Cryptoshopper 

This is crypto-related merchandise that sells crypto-labeled items from mugs to T-shirts, shoes, stickers, and so on. The retailers’ products are reasonably priced and make great collections for the crypto enthusiast. Shoppers can pay for the merchandise with their favorite crypto. Cryptoshopper accepts over 50 cryptos that are supported by CoinGate – its payment gateway, including Ripple, Bitcoin, and Litecoin.

3. Redeem 

Redeem is an online platform through which people can trade gift cards at a 10-30% discount. Customers can trade 24/7 with cards for a host of brands, including Amazon, Nordstrom, Whole Foods, Macy’s, iTunes, Starbucks, Walmart, Best Buy, Nike, eBay, Netflix, Target, and Home Depot. Users can redeem the gift cards for a myriad of products from any of these retailers.

Redeem accepts Ripple payments as well as other cryptocurrencies such as Bitcoin, Litecoin, Ethereum, Gemini Dollar, NEO, EOS, DAI, Bitcoin Cash, Tron, Tether, Steem, and several others.

4. Ledger

Ledger is a technology company that provides solutions for cryptocurrency and blockchain applications. It’s known for its reliable range of crypto wallets, including Ledger Nano S, Ledger  Nano X, and Ledger Blue. The three are hardware wallets – one of the safest wallet options in the crypto space, and they each support thousands of cryptocurrencies.

Ledger also provides Ledger Vault, which provides security solutions for crypto companies with the same level of security as the wallets, but at a larger scale. Ledger Vault supports 1000+coins, and currently secures funds for the biggest names in the industry, including Bitstamp, Uphold, and Crypto.com.

Ledger allows you to pay for products using Ripple, Bitcoin, Ethereum, Litecoin, and several other cryptocurrencies.

5. StakeBox

This is an off-shoot of a small computers’ company Raspberry Pi that provides customized staking and mining hardware and such other digital products as hardware wallets and accessories.

The company sells Proof-of-stake devices for some altcoins, including Reddcoin, Neblio, Cloakcoin, and BitBay. On top of that, it provides cold storage and a myriad of other crypto-related products.

StakeBox accepts Ripple, Bitcoin, Bitcoin Cash, Litecoin, and several other cryptocurrencies.

6. Blockchain Coffee

This is a Mexican coffee grower that sells “gourmet coffee” that’s described as “an extraordinary and sensorial experience that seeks to leave a legacy…creating a unique atmosphere that leads us to always enjoy the moment and invites us to enjoy our present.” The company sells coffee beans from the “world-renowned place for being a reference in high-quality coffee for its topography, climate, and soils.”

You can pay with cryptocurrencies such as Ripple, XCash, Monero, DASH, Ethereum, Litecoin, Doge, and more.

7. Purism 

Purism is a company that manufactures “laptops and phones that protect the privacy of your family and the security of your business.”  Each device comes packed with a myriad security and privacy features that you wouldn’t ordinarily find somewhere else.

For example, their laptops have hardware kill switches that render it impossible for third-parties to switch on the microphone and webcam remotely. The company’s products are eye-catching too – they’re made from sturdy components and feature a sleek and black aesthetic. Purism accepts a range of cryptocurrencies as payments, including Ripple, Ethereum, Bitcoin Cash, Litecoin, NEO, and DASH.

8. BitCars

BitCars is an automobile crypto-only company that sells antique and premium new cars alongside other products such as yachts, off-road vehicles, and bicycles. The dealership accepts Bitcoin and altcoins, including Ripple, Ethereum, Litecoin, Monero, and Bitcoin Cash through its BitPay payment processor plugin.

9. Lord Underwear

Lord Underwear is an online retailer of men, women, children, and infant clothes, including swimwear, socks, t-shirts, tank tops, pajamas, and underwear. Some of the products feature a ‘micromodal’ material known to be extremely soft and breathable. The store accepts Ripple, Bitcoin Cash, and Ethereum payments.

10. bidali 

This is an online store that sells all manner of gift cards from brands such as Target, Xbox, Apple Music, Chipotle, Marks and Spencer, American Airlines, Tesco,  Best Buy, Amazon, Currys PC World, and hundreds more.

The site accepts tens of cryptocurrencies, including Ripple, Bitcoin, Digibyte, Ethereum, Ethereum Classic, Komodo, Tron, Bitcoin SV, Litecoin, Basic Attention Token, Tezos, and Stellar. Giftcards.bidali also accepts stablecoins, including USDC, Gemini Dollar, QCAD, Paxos Standard Token, and more.

11. TorGuard

This is a service that provides anonymous VPN, proxy, and email encryption services for individuals and businesses. TorGuard provides some of the most trusted and well-known open-source firmware, including DD-WRT router models from some of the leading brands such as Cisco, Linksys, Airlink101, D-Link, and Asus.

TorGuard has partnered with crypto payment gateway CoinPayments, which supports cryptocurrencies, including Ripple, Bitcoin, Ethereum, Beam, Bitcoin SV, DASH, Decred, Digibyte, EOS and more.

Final Words 

Thanks to a number of crypto payment gateways supporting Ripple, the crypto’s fans can now use it to pay for a whole lot of services across a variety of stores and service providers. Hopefully, in the next future, we can see many more merchants adopting the currency.

Categories
Cryptocurrencies

Jaxx Liberty Wallet Review 2020: Is It Safe & What Are Its Fees?

Jaxx Liberty, a multi-currency wallet, is the updated and feature-rich version of the Jaxx wallet by Decentral Inc. Launched in 2016 as Jaxx Classic wallet, it has, over the years, been subjected to several updates and operational adjustments, which turned it into a cryptocoin ecosystem.

Jaxx Liberty, a multi-currency wallet, is the updated and feature-rich version of the Jaxx wallet by Decentral Inc. Launched in 2016 as Jaxx Classic wallet, it has, over the years, been subjected to several updates and operational adjustments, which turned it into a cryptocoin ecosystem.

Jaxx Liberty, a multi-currency wallet, is the updated and feature-rich version of the Jaxx wallet by Decentral Inc. Launched in 2016 as Jaxx Classic wallet, it has, over the years, been subjected to several updates and operational adjustments, which turned it into a cryptocoin ecosystem.

Jaxx has such advanced features as an inbuilt exchange, real-time news monitors, and market data/portfolio trackers. It also boasts of an experience-laden development team, led by Anthony Di Iorio. The Canadian Entrepreneur was the first executive director of the Chamber of Digital Commerce in Canada, as well as the Ethereum co-founder. His guidance has been instrumental to the ever-growing popularity and reputation of the Jaxx Liberty wallet. And all these distinguish Jaxx Liberty from other multi-currency crypto wallets that only serve as vaults for digital currencies.

In this Jaxx wallet review, we will be exploring some of the wallet’s key operational and security features, pros, and cons, vetting its setup process, and ease of sending/receiving coins into the wallet.

Jaxx Liberty Wallet Key features

User-friendly interface: Jaxx Liberty wallet has one of the friendliest user interfaces. And one of its key features includes a unified dashboard system that makes it possible for users to view and interact with all the key wallet features and digital assets on one screen.

Shapeshift integration: Unlike most of the other wallets -that require multiple transfers in and out of exchanges every time you wish to convert your coins to another currency- Jaxx Liberty integrates shapeshift technology. Shapeshift refers to an in-built exchange that allows Jaxx Liberty wallet users to convert their digital assets from one coin to another within the wallet app.

Multi-platform support: Jaxx Liberty is highly versatile and integrates with virtually all popular operating systems. There are different versions for Windows, macOS, and Linux desktop operating systems. The wallet is also available in both Android and iOS smartphone app versions as well as via a chrome browser extension.

Market data tracker: One of the most valuable additions to the Jaxx Liberty wallet not available with its predecessors, is the market data tracker. This allows you to follow market trends, compare price changes, and monitor the market capitalization for different coins in real-time within the app.

Features a portfolio tracker: The unified dashboard doesn’t just provide a view of your crypto assets but also features portfolio tracking tools. These make it possible to monitor the value of your portfolio in real-time without leaving the wallet app.

Newsfeed integration: Traders and investors don’t have to leave the app to source for the crypto industry news and research. Jaxx Liberty has a special section dedicated to the most recent news and events that relate to and impact the crypto industry.

Integration with third party exchanges: In addition to Shapeshift, the Jaxx Liberty wallet also integrates with the all-popular crypto exchange – Changelly.

Security features

Anonymous trading: Jaxx Liberty collects as little information about their Crypto wallet users as possible. The wallet, for instance, doesn’t ask for any of your sensitive user information like national identification number, full names, or address. This ensures that even if the platform was breached, their user’s privacy is guaranteed.

Password protection: You get to set up a strong password upon activating the Jaxx Liberty Wallet. The password is unique to your wallet, and you will need it every time you want to log into the app or confirm a crypto transaction.

Recovery seed:  Like virtually every other crypto wallet, Jaxx Liberty has a 12-word backup seed. You get to generate this during the app setup, and it comes in handy in helping you recover your private keys, should you misplace/lose your device, or forget your password.

Hierarchical deterministic: A hierarchical deterministic wallet is a wallet whose design allows it to generate different random addresses for different transactions. It implies that every time you transact with the Jaxx Liberty wallet, it will generate a random public key. This goes a long way in masking your real public key and swaying off hackers.

Automated updates: You will receive automated wallet patches and updates. The automation is key here, as it provides protection and seals off any wallet vulnerabilities as soon as they are discovered, effectively minimizing the risk of manipulation.

Currencies supported

On their website, Jaxx Wallet claims that their wallet makes it possible for you to send, receive, and manage 90+ cryptocurrencies on their platform. These include all the popular coins like Bitcoin, Bitcoin Cash, Litecoin, Dash, Dogecoin, Ethereum, Ethereum Classic, and numerous other tokens. 

Jaxx Liberty Wallet cost and other fees

Both the desktop and smartphone Jaxx Liberty Crypto wallet apps are free to download and install. You, however, will be charged a small transaction fee every time you send coins from your wallet or use the inbuilt exchange to convert your assets from one coin to another.

There are three classes of fees that include low, typical, and higher fees depending on the number of currencies being transacted, and the speed at which you would like the transaction completed. Interestingly, however, these fees all go to the blockchain miners confirming the transactions.

Setting up the Jaxx Liberty Wallet:

How to install Jaxx Liberty Wallet:

Step 1: Start by downloading and installing the desktop or mobile app from the Jaxx Liberty wallet website.

Step 2: Select the ‘Create New Wallet’ option and agree to the wallet’s terms and conditions.

Step 3: Proceed to create a strong and multi-character password for your wallet – the longer the password, the better.

Step 4:  Atop the wallet interface will appear the ‘Backup banner’ requesting you to create a backup for your wallet. Click here and write down the 12 seed words provided. Keep these words safe as you will need them to recover your private keys if you ever forget your password.

Step 5: The app will have a default address for bitcoin, and you can proceed to create wallet addresses for other coins you wish to receive.

Step 6: You can start sending and receiving digital coins, monitoring your portfolio, and tracking the crypto markets.

Sending and receiving coins:

To receive funds into your Jaxx Liberty Wallet:

Step 1: Click on the receive icon on the wallet interface page.

Step 2: Proceed to select the coin you want to receive and wait for the hierarchically deterministic wallet to generate a wallet address.

Step 3: The wallet will present you with an address that you can copy and send to your sender as well as a QR code that you can print and send to the person from whom you wish to receive the digital coins.

To send payments from your Jaxx Liberty Wallet:

Step 1: Click on the Send icon on the wallet interface.

Step 2: Select the coin you wish to send.

Step 3: Input the receiver’s wallet address and the number of coins you wish to send.

Step 4: Confirm that the details are correct and hit the send button.

Jaxx Liberty Wallet hardware wallet pros and cons:

Pros:

  • The wallet is compatible with virtually every operating system.
  • Jaxx embraces a raft of security features, including the fact that it is hierarchically deterministic.
  • The wallet is user friendly and easy to interact with, for both beginners and experienced crypto-traders.
  • The Jaxx Liberty wallet is feature-rich, and you don’t have to leave the app to transact or get market information.
  • Acquiring the Jaxx Liberty wallet is free and maintains inexpensive transaction fees.

 Cons:

  • Jaxx wallet was breached in 2017, and hackers made away with over $400,000 worth of coins.
  • The wallet is incompatible with hardware wallets. One may consider the number of digital currencies supported by the broker to be quite low
  • It’s a hot wallet and, therefore, requires you to maintain powerful antivirus software to keep malware out, which might be costly over time.

Jaxx Liberty Wallet compared to competitors

Comparing Jax Liberty against most other hot wallets like Coinbase, eToro, and Electrum, we note that it has its fair share of strengths and weaknesses. Unlike the smartphone Electrum wallet, for instance, Jaxx Liberty isn’t compatible with the more secure hardware wallets and also supports a fewer number of crypto coins. Similarly, Jaxx is not as secure as the exchange linked hot wallets like eToro and Coinbase, which store their clients’ crypto assets in cold wallets. It can, nonetheless, be said to have more sophisticated operational features compared to most of these other crypto wallets.

Customer support:

Jaxx Liberty has one of the most responsive customer service desk. And while this team isn’t accessible via the phone, they are readily available via email and on all social media platforms.

Verdict: Does Jaxx Liberty Wallet live to its reputation?

Given the wallet’s association with De Iorio, a renowned blockchain specialist, and Ethereum co-founder, one would expect Jaxx Liberty to be one of the most formidable wallets out there. Its support for just handful currencies, a history stained with a significant security breach, and subsequent loss of clients’ funds, as well as the lack of solid security features like the 2FA or face ID, dents its reputation. We, however, would like to appreciate it’s easy to use and feature-rich platform, which makes Jaxx one of the best crypto wallets for beginners and low-volume traders. 

Categories
Cryptocurrencies

Coinbase Wallet Review 2020: Is It Different Coinbase Exchange?

Coinbase wallet is a standalone crypto vault developed by the San Francisco based tech-startup and one of the world’s biggest cryptocurrency exchanges – Coinbase. The wallet is online-based and free to all. The wallet has gained over time a reputation and massive following in the crypto industry not just because of its close association with the Coinbase Exchange but also due to its safety, accessibility, and support for numerous digital coins. Coinbase wallet is also is one of the few hot wallets that have never been hacked.

Coinbase wallet is a standalone crypto vault developed by the San Francisco based tech-startup and one of the world’s biggest cryptocurrency exchanges – Coinbase. The wallet is online-based and free to all. The wallet has gained over time a reputation and massive following in the crypto industry not just because of its close association with the Coinbase Exchange but also due to its safety, accessibility, and support for numerous digital coins. Coinbase wallet is also is one of the few hot wallets that have never been hacked.

Coinbase wallet is a standalone crypto vault developed by the San Francisco based tech-startup and one of the world’s biggest cryptocurrency exchanges – Coinbase. The wallet is online-based and free to all. The wallet has gained over time a reputation and massive following in the crypto industry not just because of its close association with the Coinbase Exchange but also due to its safety, accessibility, and support for numerous digital coins. Coinbase wallet is also is one of the few hot wallets that have never been hacked.

In this Coinbase wallet review, we take a look at some of its key operation and security features that make it one of the most popular crypto wallets. We also explore the ease of using the wallet – from the registration process to sending and receiving coins to the wallet.

Coinbase Key features:

Straightforward and user-friendly interface: The Coinbase crypto wallet has a friendly and easy to use interface. It is also overly simple, making navigation easy for both experienced and beginner crypto traders.

Seamless transfers to other wallets: Sending digital assets from your Coinbase wallet to another Coinbase wallet or a different cryptocurrency vault is easy and straightforward. 

Free to acquire: The Coinbase crypto wallet is free. And unlike the Coinbase exchange that is only available in a handful number of countries, virtually anyone in the world can download and use the Coinbase crypto wallet.

Highly customizable wallet addresses: When creating a Coinbase wallet account, you will need to come up with a unique username. And instead of sending coins to the complex and lengthy wallet addresses, the uniqueness of these usernames has made it possible for Coinbase users to send coins to usernames instead of addresses when exchanging cryptos from one Coinbase wallet to another. 

Non-Custodial wallet: Coinbase is a non-custodial crypto wallet implying that the coins aren’t held on Coinbase servers but stored in the app in your device. You, therefore, have real-time access and full control over your private keys. 

Integration with other online wallets: The Coinbase wallet easily integrates with some online crypto wallets like MyEtherWallet and Metamask with ease.

Security features:

Password protected with 2FA features: The most important security feature for any crypto wallet is arguably its password. But Coinbase seeks to enhance this further by introducing the two-factor verification security option, which uses your mobile phone number.

Biometric and auto-lock security options: In addition to the passcode and 2-step security protocols, the Coinbase mobile app wallet also supports other biometric security options such as the Face ID and fingerprint security systems. It also has the timed auto-lock system that closes the wallet app after a few minutes or hours of inactivity.

Double encryption: Coinbase further argues that the data held in the Coinbase wallet app, especially the private keys and passwords, are highly encrypted. According to their website, the wallet app employs the 256-bit encryption and has also received the Federal Government approved FIPS-140 certification.

Recovery seed: When signing up for the Coinbase wallet, you will be provided with a 12-word recovery seed. You can use this to recover your private keys if you ever lose the phone or forget the password to the wallet.

Currencies supported

Coinbase wallet is a multi-currency wallet that supports all the popular cryptocurrencies, ERC-20 tokens, and ERC 721 collectibles. These add up to around 100 coins, which include Bitcoin, Bitcoin Cash, Ethreum, Ethereum Classic, Litecoin, Ox, and QTUM.

Coinbase wallet cost and other fees

Whereas acquiring the crypto wallet is free, you will be charged for its use. Sending coins from the wallet to another attracts highly variable transaction fees.

Additionally, the Coinbase wallet doesn’t maintain a transaction fee structure. You, therefore, won’t know how much you will be charged for the coins transfer until after you have initiated the transaction.

Setting up the Coinbase wallet:

How to install a Coinbase wallet app:

Step 1: Start by downloading and installing the Coinbase Wallet App: Google Play Store for Android phone users and the iOS App Store.

Step 2: If you are new to the Coinbase wallet, select the “Create a New Account” option to create a Coinbase wallet app. If you already have a Coinbase wallet app and are you are looking to recover lost private keys, use the “Recover account” option.

Step 3: Choose a unique username.

Step 4: Choose a login option. You can either choose to create a six-digit passcode or the Biometric Face ID login option.

Step 5: The app will then present you with a 12-word recovery phrase as your account backup. Write these words down on a piece of paper and store it safely. You will need them to recover your private keys should you lose access to your phone or forget the wallet app password.

Step 6: You can now start transferring digital currencies in and out of the Coinbase wallet app.

Sending and receiving coins:

To receive funds into your Coinbase Wallet:

Step 1: Open and log in to the Coinbase wallet app.

Step 2: Open the coins and tokens icon and click on the type of coins you want to receive.

Step 3: Click on the receive option and copy the wallet address, or print the QR code provided and present it to your sender.

To send payments from your Coinbase Wallet:

Step 1: Open and log in to the Coinbase wallet app.

Step 2:  Open the coins/Tokens tab and click on the coins/token you wish to send.

Step 3: Select the send payments icon.

Step 4: On the send payments tab, enter the receiver’s wallet address, scan their address QR code, or key in their Coinbase username.

Step 5: Enter the number of coins you wish to send, confirm the address or user name, and click send.

Coinbase hardware wallet pros and cons:

Pros:

  • The Coinbase wallet app has one easy and straightforward registration process.
  • The wallet has multiple security features that include a passcode and biometric features such as Face ID.
  • The wallet app is free of charge 
  • The wallet integrates with other third party hot wallets like MyEther Wallet and Metamask
  • The wallet has the backing of one of the safest and most reputable cryptocurrency exchanges

Cons:

  • One may consider the number of coins supported by the Coinbase wallet app relatively limited
  • The wallet doesn’t support anonymous trading
  • It is hosted online, and this compounds the threat of a possible breach
  • The wallet is institutionally owned, implying that they may track how you invest and spend your coins
  • The wallet app isn’t hierarchically deterministic

Coinbase wallet compared to competitors:

Comparison with hot wallets:

The Coinbase wallet app is more secure than most wallet apps. It has many advanced security features like Biometrics, supports two-factor authentication, and is also highly encrypted. Additionally, whereas most hot wallets have suffered varied extents of security breaches, the Coinbase wallet app has never been compromised. The downside to the use of Coinbase is that unlike most crypto wallet apps like Mycelium that integrate with hardware wallets to add a layer of security and broaden the number of cryptos they can support, Coinbase doesn’t.

Comparison with hardware wallets:

Hardware wallets like Trezor and Ledger Nano S are more secure and have hardier security safeguards than Coinbase. The wallet app is, for instance, a soft target for remote hacks where anyone who gains access to your device remotely can easily clear your accounts. Hardware wallets have on-device buttons with the sole purpose of authorizing transactions. Plus, they tend to support more crypto coins than most wallet apps.

Customer support:

Coinbase customer support is relatively average. On their website is a quite elaborate FAQ page addressing some of the most common user queries. You, however, can only contact their support via social media or email. The wallet app doesn’t have phone support or the live chat feature.

Verdict: Is the Coinbase wallet app safe?

Three primary factors make the Coinbase crypto wallet a must-have for a budget cryptocurrency investor/trader. First, it is free to acquire. Secondly, it has some of the most advanced security features, including biometrics: fingerprint, and face ID. Lastly, it is closely associated with one of the most reputable cryptocurrency exchanges in the world. It is mostly ideal for low-volume crypto traders. But ensure that you also invest in solid antivirus software for both your phone and computer before installing the wallet app. 

 

Categories
Cryptocurrencies

Guarda Crypto Wallet Review: Features, Security, And Ease Of Use

Guarda is a multi-currency non-custodial cryptocurrency wallet launched to the crypto community in 2017. It is developed by Guardarian OÜ Company, a blockchain technology startup based in Estonia. And while Guadarian has come up with several technological products, the Guarda wallet has received the widest reception in the crypto world because of its versatility and security.

Guarda is a multi-currency non-custodial cryptocurrency wallet launched to the crypto community in 2017. It is developed by Guardarian OÜ Company, a blockchain technology startup based in Estonia. And while Guadarian has come up with several technological products, the Guarda wallet has received the widest reception in the crypto world because of its versatility and security.

Guarda is a multi-currency non-custodial cryptocurrency wallet launched to the crypto community in 2017. It is developed by Guardarian OÜ Company, a blockchain technology startup based in Estonia. And while Guadarian has come up with several technological products, the Guarda wallet has received the widest reception in the crypto world because of its versatility and security.

Other factors that make Guarda wallet stand out include ease of use and transparency in fees. Additionally, Guarda is registered and regulated by the Financial Intelligence Unit of Estonia and licensed to offer cryptocurrency exchange services.

In this Guarda crypto wallet review, we will be taking an in-depth look at the multicoin, multiplatform wallet, exploring its key operation and security features as well as its pros and cons.

Key Features:

Multiplatform: Guarda is a multiplatform wallet accessible on multiple devices and operating systems. The most popular are its iOS and Android apps for mobile device users and the web-trader, plus Linux, Windows, and macOS desktop apps for their desktop clients.

Inbuilt exchange: Guarda has an elaborate in-built exchange where the wallet users can trade and swap one crypto for another or for fiat currency. It supports both fiat-to-crypto as well as crypto-to-crypto exchanges.

Supports credit cards: Guarda wallet with its inbuilt exchange is one of the few cryptocurrency wallets that do not just support fiat-to-crypto exchanges but also allow for the purchase of cryptos using credit cards. The Guarda wallet’s parent company is also in the process of rolling out a prepaid debit card that can be integrated into the Guarda cryptocurrency ecosystem.

Integration with hard wallets: Guarda crypto wallet integrates seamlessly with the Ledger Nano X hardware wallet. This not only boosts its security but also amplifies the number of supported currencies.

Chrome extension and DAPP ecosystem: Guarda wallet also has a Chrome extension that you can use to control your wallet. Recent improvements to the extension have also made it possible for Guarda wallet holders to access the EOS ecosystem, where they can create and interact with the different DApps.

Token generator: By acquiring the Guarda wallet, you also gain access to its parent company’s blockchain network and token generator tool that you can use to create, popularize, and issue your own token.

Security features

Password: First, in your Guarda wallet’s line of defense is the app/web-trader password that you set during installation.

Seed backup: Like any other non-custodial cryptocurrency vault, Guarda wallet furnishes you with a seed backup for your wallet. You will need it to recover the wallet and private keys therein should you forget the password or lose the phone hosting the wallet.

Non-custodial: Guarda is a non-custodial platform, and this means that the private keys are stored on your device and not on the company’s servers. This minimizes exposure to risk should the wallet company be breached. 

AES data encryption: All the data collected and stored in your Guarda wallet, including the private keys, is further secured using the AES data encryption tool.

Open-sourced code: The Guarda wallet source code is open-sourced. This means that it has been availed to the public and internet security experts; who have audited it to ensure that there are no loopholes that make it susceptible to external hacks or malicious codes that give its developers access to the private keys stored in your wallets.

Ease of use:

The Guarda crypto wallet is very easy to use. It has a highly simplistic and friendly user interface that’s easy to interact with; it is also easy to execute different commands for beginner traders and veterans alike. The app is also highly customizable, allowing you to change such aspects of the wallet app like themes and opt for light or dark mode.

Additionally, while it will only have a few default wallets on the user dashboard upon signing in, the creation of additional coins or tokens is instant. You only have to click on the coin or token you wish to create a wallet from the supported cryptocurrency list and tap ADD. 

Supported currencies and countries

Guarda crypto wallet currently supports over 47 major currencies: Bitcoin, Ethereum, Bitcoin Gold, Bitcoin Cash, Dash, Ripple, Litecoin, and more. It also supports hundreds of ERC 20 and BEP 2 Tokens.

It has established a global presence and currently supports residents of 100+ countries across the world, including 28 member nations of the European Union.

Guarda crypto wallet cost and fees

Acquiring the Guarda wallet and most of the accompanying products like the token generator tool are free.

You will, however, incur variable transaction fees when you exchange or swap cryptocurrencies and cash within the platform. Credit cards, particularly, tend to incur relatively higher fees than other transactions. The wallet app nonetheless lets you know the transaction fee before executing the order.

Customer support

Guarda website has a dedicated FAQ section where clients can get answers to some of the most common questions on how to use the wallet. Personal challenges with the app can also be directed to Guarda’s customer support team by opening ticket support on their website, via email or through their social media handles.

Setting up the Guarda crypto wallet

How to install the Guarda crypto wallet:

Step 1: Head over to the Guarda wallet website and download the app for your specific device, desktop, android, or iOS and install.

Step 2: Launch the app and select “Create New Wallet.”

Step 3: Create a strong password for your account and memorize it or write it down on paper.

Step 4: Click on the download backup to download the 12 words recovery seed.

Step 5: The app will then redirect you to your user dashboard, where you can start buying and selling crypto.

How to buy cryptocurrencies using your Guarda wallet:

Step 1: On your user dashboard, click on the “Buy” tab.

Step 2: On the drop-down menu, select your country of residence.

Step 3: On the buy menu, enter the amount you wish to buy in the “FROM” section and the type of crypto in the “WALLET” section.

Step 4: Choose the preferred payment method and click next (debit/credit card or bank wire).

Step 5: Recheck the purchase details and hit ‘Confirm.’

Step 6: You will then be redirected to the Simplex Payment Gateway to complete the transaction.

How to send cryptos into your Guarda wallet:

Step 1: On your Guarda wallet user dashboard, choose ‘Send.’

Step 2: Enter the number of cryptos you would like to send and the recipient’s wallet address.

Step 3: Review the wallet address and amounts before hitting ‘Confirm.’

Guarda crypto wallet pros and cons:

Pros:

  • A highly innovative and feature-rich crypto wallet that includes a token generator and an in-built exchange platform.
  • Guarda wallet is easy to use as it features a friendly user interface.
  • The wallet is non-custodial and compliments this with multiple security features like the open-sourced code.
  • The chrome extension lets Guarda wallet users interact with a wide range of DApps and the EOS ecosystem.
  • The Guarda wallet can be on multiple devices using different operating systems.

Cons:

  • The in-wallet swaps and exchange fees are higher than the charges at most exchanges
  • The number of cryptocurrencies supported on the platform is considerably  limited
  • It doesn’t support biometric security features or the 2FA

Comparing Guarda wallet with eToro crypto wallet:

eToro and Guarda are both hot wallets. Unlike Guarda, the eToro crypto wallet is custodial, implying that it holds the coins on behalf of the account holders. And in addition to the crypto wallet password used by Guarda wallets, eToro has gone a step further to store the client deposits in cold storage. The fact that eToro is exchange-linked means that the crypto exchange and swap fees are more competitive and that it accepts more withdrawal and deposit options. Guarda, on the other hand, supports more cryptocurrencies than eToro and further exposes its client to DApps.

Comparing Guarda with Trezor hardware wallet

Trezor T hardware wallet supports more cryptocurrencies and stores your digital assets offline away from remote hackers. This makes it a safer option for a crypto investor. On the other hand, while the hot wallet nature of Guarda exposes it to more security threats, it is more user-friendly, more versatile, and cheaper.

Verdict – is Guarda wallet safe?

Several factors lead us to believe that Guarda wallet developers have taken adequate measures to make a secure crypto wallet. These include its open-sourced code, the strong password, and downloadable backup seed, as well as its non-custodial nature. We are, nevertheless, alive to the fact that more could be done to make it safer, including the integration of biometric security features for the mobile apps and enabling the two-factor authorization. Guarda wallet is safe for use for low volume traders and beginners, but you must first invest in good antivirus software for your device.  

Categories
Cryptocurrencies

Infinito Wallet Review 2020: Features, Cost, Pros And Cons

On the Infinito Wallet website, their mobile app is described as the “Best Crypto Wallet & DAPP Browser.” It is created and run by Infinito Blockchain Labs, a technology company registered in The Isle of Man, the U.K. The multi-asset crypto mobile app was launched in 2017 and has leveraged technology to come up with one of the most innovative crypto mobile apps today. The app takes pride in three of its primary features; the support for the widest range of cryptocoins and tokens, a built-in exchange, and support for EOS functions.

On the Infinito Wallet website, their mobile app is described as the “Best Crypto Wallet & DAPP Browser.” It is created and run by Infinito Blockchain Labs, a technology company registered in The Isle of Man, the U.K. The multi-asset crypto mobile app was launched in 2017 and has leveraged technology to come up with one of the most innovative crypto mobile apps today. The app takes pride in three of its primary features; the support for the widest range of cryptocoins and tokens, a built-in exchange, and support for EOS functions.

On the Infinito Wallet website, their mobile app is described as the “Best Crypto Wallet & DAPP Browser.” It is created and run by Infinito Blockchain Labs, a technology company registered in The Isle of Man, the U.K. The multi-asset crypto mobile app was launched in 2017 and has leveraged technology to come up with one of the most innovative crypto mobile apps today. The app takes pride in three of its primary features; the support for the widest range of cryptocoins and tokens, a built-in exchange, and support for EOS functions.

These play a key role in giving it an edge over the competition. But how safe and reliable is the mobile app considering that it is an unregulated broker? We thoroughly analyzed the app and its parent company and came up with this review that answers every question you have about the Infinito wallet.

Infinito Key features:

Pure mobile wallet: Infinito crypto wallet is mobile-based and only available to Android and iOS device users. Unlike most other apps that have either a desktop or Webtrader platform alongside the mobile app, Infinito was specially designed for mobile devices.

Built-in exchange: Infinito wallet app is one of the few all-rounded crypto apps. It recently introduced a built-in exchange in partnership with Changelly, where its members can seamlessly exchange cryptocurrencies.

Support for EOS apps: Infinito crypto wallet users can also access the EOS platform and take advantage of its features using the app. The support for EOS functions means you can sell RAM, stake CPU, and even create an EOS account and DAPPs without leaving the wallet app.

Price tracking and newsroom: You can track and receive notification about the price changes of your favorite assets using the app. And as part of the wallet roadmap, you will soon have access to one of the most comprehensive crypto newsrooms within the app.

Crypto lending: The crypto mobile wallet further maintains a secondary market where you can lend out your digital assets and earn interests in their use.

Infinito DAPP square: The Infinito crypto wallet app recently introduced the Infinito DAPP square that gives you access to leading DApps on the crypto space. In addition, they are integrated with the wallet for ease of payments.

Security features:

Password protected: The Infinito crypto wallet app is passcode protected. You get to set the password during the app installation and setup.

Biometric security: In addition to the passcode, the Infinito crypto mobile app supports several other Biometric security features, including Facial recognition and fingerprint.

Hierarchically deterministic: Infinito is also a hierarchically deterministic wallet, and this means you can create multiple wallet addresses to mask your public key and throw off trackers.

Open-sourced platform: Infinito crypto wallet is built on an open-sourced platform that has been vetted and audited by some of the most experienced crypto technologists in the world.

Risk management tools: Some of the risk management tools employed by the Infinito crypto wallet app include a profile check and detailed risk report about every wallet user. Always check this before engaging a trader on the platform.

The wallet doesn’t store any sensitive data: Infinito doesn’t store any sensitive information about their clients on their servers. It is non-custodial, and thus the private keys are under your control and stored within the mobile wallet. 

Ease of use:

The Infinito crypto wallet app maintains a friendly user interface that’s easy to use for both crypto beginners and veteran traders. It is highly customizable, allowing users to tweak such aspects of the app as its background (light and dark themes), and change the size and color of texts and icons.

Infinito crypto wallet app is also multilingual and currently supports up to 12 international languages (English, Chinese, German, Thai, Russian, Japanese, Vietnamese, Korean, Italian, French, Hindi, and Portuguese). The app installation, as well as the process of sending and receiving digital currencies, are also easy and straightforward.

Currencies supported

According to the Infinito crypto wallet website, you can send, receive, and exchange 2000+ cryptocurrencies and tokens on the app.

Some of the popular cryptocurrencies supported on the platform include Bitcoin, Bitcoin Cash, Ethereum, Dash. Litecoin, Dogecoin, ETC, EOS, NEO, and GAS.

The crypto wallet app also supports all the ERC 20 and NEP-5 tokens and will soon start supporting EOS and other tokens, as described on their road map.

Infinito wallet cost and other fees

Acquiring the Infinito crypto wallet app is free. You also won’t be charged to store your coins on the wallet.

Crypto transactions on the exchange and the EOS main net, however, attract variable charges depending on the transaction volumes and exchange network. These fees go to the system Infinito Blockchain network miners who confirm and validate transactions.

The crypto wallet app also has a price optimization feature that lets you set the transaction fees based on the speed with which you want the transaction confirmed. Here, high paying users will have their transactions confirmed in the shortest time possible.

Setting up the Infinito wallet:

How to install Infinito wallet:

Step 1: Download and install the Infinito Crypto wallet app: Google Play Store for Android OS users and Apple App Store for iOS users.

Step 2:  Select the ‘Create a New Account’ option and agree to the app’s terms and Conditions.

Step 3: Next is the backup page where the app presents you with 12 phrases, also known as recovery seed, which serve as your account backup. Write it down on a piece of paper and store it in a highly secure place.

Step 4:  Next is the passphrase verification step where you chose the correct order of seed words.

Step 5: Set up a strong password and finish the setup process.

Step 6: The app will direct you to the user dashboard, after which you can add, send, or receive coins to your wallet.

Note: You may first want to head over to the settings page to add more security layers to your accounts, such as fingerprint or facial recognition.

Sending and receiving coins:

To receive funds into your Infinito Wallet:

Step 1: Click on the coins/tokens you wish to add to your wallet and tap ‘receive.’

Note: The Infinito crypto wallet app has default addresses for Bitcoin, Ethereum, NEO, and GAS coins. If you want to add another address, click on the coins/tokens tabs and tap the coin, you wish to add. The wallet will create an address automatically.

Step 2: You will have the option of a QR code or wallet address. You can send either to the individual sending you the coins.

Step 3: Wait to receive the coins.

To send payments from your Infinito Wallet:

Step 1: On your user dashboard, click on the token/coin you wish to send.

Step 2: Select the “Send” option and enter the recipient’s wallet address and the amounts you wish to send.

Step 3: Chose the transaction fees (either Premium. Economy or Regular) and tap next.

Step 4: Confirm the wallet address, amount details, and send.

Infinito hardware wallet pros and cons:

Pros:

  •         Maintains a multi-layered security fence around the user account with a combination of passwords and biometrics.
  •         Supports one of the widest range of crypto coins and tokens.
  •         Easy and straightforward registration, coin-sending, and receiving processes.
  •         Has a built-in exchange and highly optimized transaction fees.
  •         It is one of the few crypto mobile apps that support the EOS main net and most functions, including the creation and use of EOS DApps.

Cons:

  •         Infinito Crypto wallet app is a hot wallet and, therefore, susceptible to more risks than the average hard wallet.
  •         It is relatively new and unregulated.
  •         It doesn’t have a web trader platform or desktop app.

Infinito wallet compared to competitors:

Comparing infinito with Hit wallets:

When compared to such other hot wallets as eToro, Infinito carries the day when it comes to the number of supported cryptocoins and tokens. Also, it has more integrated features like the support for the EOS main net, the creation of EOS account, and ease of interaction with the EOS DApps. It can, however, be said to be less secure than eToro, which stores its clients’ digital assets in cold storage and supports the trade of the not-so-risky CFDs.

Comparing infinito with hardware wallets:

When gauged against hardware wallets like the Ledger Nano S, the Infinito crypto wallet app takes the day for a more versatile and more technologically innovative platform. But its security features, including the integration of biometric systems, though innovative, aren’t as hardy. For instance, the hot wallet is susceptible to remote hacks that may authorize crypto transactions using the wallet. The Ledger Nano S is, on the other hand, insulated from such, as it stores private keys offline, and its transactions must be authorized by a button on the hardware crypto storage device.

Customer support:

Infinito Wallet has a relatively responsive customer support team. It is multilingual and accessible via the live chat on the wallet’s website. Alternatively, you can rely on their elaborate FAQ page, send them an email, open a support ticket via the ‘Contact Us’ icon on the website, or through the different social media platforms.

Note that Infinito doesn’t offer phone support.

Verdict: Is the Infinito wallet safe?

The Infinito crypto mobile app has several impressive operational and security features that make it one of the most technologically advanced mobile wallet. It carries out identity verification by following the KYC protocol, has open-sourced its blockchain for vetting and auditing by the global internet security community, and incorporated biometric account safety features. Since its debut in 2017, it has never suffered a security breach. All these are a clear indication of a highly secure platform, save for the fact that it is unregulated. 

Categories
Cryptocurrencies

BRD Wallet Review 2020: What Are Its Features, Cost, Pros, And Cons

BRD Wallet is a non-custodial mobile wallet built on the iOS platform. Non-custodial implies that Private keys for your digital assets are held on your mobile device, and not on BRD’s servers. The wallet has gained popularity in the recent past, primarily due to its support for anonymous trading, as well as the inclusion of multilayered security features aimed at preserving the integrity and safety of the user’s account and private keys.

BRD Wallet is a non-custodial mobile wallet built on the iOS platform. Non-custodial implies that Private keys for your digital assets are held on your mobile device, and not on BRD’s servers. The wallet has gained popularity in the recent past, primarily due to its support for anonymous trading, as well as the inclusion of multilayered security features aimed at preserving the integrity and safety of the user’s account and private keys.

BRD Wallet is a non-custodial mobile wallet built on the iOS platform. Non-custodial implies that Private keys for your digital assets are held on your mobile device, and not on BRD’s servers. The wallet has gained popularity in the recent past, primarily due to its support for anonymous trading, as well as the inclusion of multilayered security features aimed at preserving the integrity and safety of the user’s account and private keys.

But BRD is more than just a wallet, it is a blockchain network with its own native token. In this BRD wallet review, we will be looking at all the popular operational and security features associated with BRD, its fees and ease of use, and tell you whether it is a secure wallet.

BRD Key features:

Multiplatform: BRD Wallet is a mobile-based crypto wallet. It is built on the iOS platform and was originally designed for Apple product users. A surge in popularity has, however, seen the release of the android BRD wallet version for Android OS powered devices. 

Fast: The BRD wallet uses the Special Payment Verification (SPV) protocol to connect to the Bitcoin blockchain, effectively guaranteeing the fastest crypto transaction confirmation speeds.

Native tokens: BRD is one of the few networks that maintains its own native token, the BRD Token.

Reward program: The BRD wallet is also one of the few networks that have an active loyalty reward scheme. The more BRD tokens you buy and hold in your wallet, the higher the rewards. 1,000 BRDs will get you 25% off trading fees, 2,500 BRDs gets you access to phone support, while 100,000+ BRDs gets you a phone call with BRD wallet CEO.

Support for debit cards: The BRD wallet doesn’t just make it possible to exchange coins, you can also easily pay for your Bitcoins or any other coins within the BRD network, using debit and credit cards.

Open source technology: The BRD wallet is also established on an open-sourced technology platform. This has, over the years, been vetted and audited by internet security experts with possible loopholes identified and patched. 

Blockchain toolbox: Most recently, BRD introduced the BRD blockchain toolbox referred to as the Blockset. This is a technology platform that blockchain technologists can use to create enterprise apps. According to BRD, Blockset will at first support Bitcoin, XRP, Hedera, and Ethereum blockchains before bringing more networks on board.

Security features:

Password protected: When installing the BRD wallet app, you will be required to set a six-digit password.

Biometric features: In addition to the passcode, BRD also incorporates other security features such as fingerprint and Facial recognition biometrics.

Anonymous trading: When creating a user account with BRD wallet, the company doesn’t ask for information personally identifiable to you, like your name, physical address, or email address. Neither will you be subjected to the KYC verification process. And this allows for anonymous crypto transactions.

12 phrase seed backup: Should you ever forget the account password, or lose access to the mobile device hosting your private keys, you can always recover your BRD wallet account using the 12 phrase recovery, generated by the wallet during installation.

AES hardware encryption: The private keys and any other information stored in your BRD wallet is also highly encrypted using the AES hardware encryption technology.

BRD Wallet ease of use:

BRD wallet is an easy to use crypto vault. While it hosts numerous features, they are all neatly organized on the user dashboard. The BRD wallet account registration processes are also easy and straightforward.

The mobile wallet app is also multilingual, supporting up to 13 international languages and currently available to the crypto community members in over 150 countries across the world. 

Currencies supported

BRD wallet was initially designed to be a Bitcoin Only wallet. Over time, however, the mobile vault has incorporated several other cryptocurrencies and tokens, including Bitcoin Cash and Ethereum, stable coins like TrueUSD, and all the ERC 20 tokens.

It has Bitcoin as the default wallet address, and therefore, you will need to manually add the wallet for any other crypto you wish to transact. The process is, however, easy as you only need to head over to the cryptocurrency exchange list on your user dashboard, and click on the ‘Add’ icon that displays against the coin you wish to buy/send.

BRD crypto wallet cost and other fees

Acquiring the BRD wallet and storing your digital assets is free. Transacting through the app, however, attracts variable fees, depending on factors such as the blockchain network involved, the number of coins being exchanged, and the medium of exchange.

If you, for instance, wish to buy crypto assets using a credit card, you incur as much as 5% in transaction fees.  Your bank or debit card provider may also charge a processing fee when you wish to make cash deposits like USD, EUR, CAD, DKK, and GBP for purchases of different cryptocurrencies within the app.

Setting up the BRD crypto wallet:

How to install a BRD wallet:

Step 1: Download the BRD crypto wallet app from the Google Play Store on your Android or the Apple App Store for your iOS mobile device and install it.

Step 2: Create and memorize a six-digit passcode that you will be using to access the wallet app.

Step 3: The crypto wallet app will then auto-generate 12 phrases that serve as the backup seed for your account. You will need them to recover your wallet and private keys therein if you forget the password.

Step 4: You are now set and can start transferring cryptocurrencies to the wallet and buy or sell in the app-based exchange.

Note: Before you start transacting using the app, we advise that you first add a biometric security feature such as the fingerprint or Face ID to the app as an additional security layer.

Sending and receiving coins:

To receive funds into your BRD Wallet:

Step 1: Log in to your BRD crypto wallet app.

Step 2:  On your user dashboard, click on the coin you wish to receive.

Step 3:  Tap the receive option to display the wallet address and the QR code. Copy either and send them to the party sending you coins.

To send payments from your BRD Wallet:

Step 1: Log in to your BRD crypto wallet app.

Step 2: On your user dashboard, click on the coin you wish to send.

Step 3: Tap the send option to display the payment details. Enter the recipient’s wallet address and the number of coins you wish to send.

Step 4: Confirm the payment details and hit send.

BRD hardware wallet pros and cons:

Pros:

  • Its open-sourced nature and integration of biometric features speak a lot about the app development team’s dedication to its security.
  • The wallet app is relatively easy to use, as it features a friendly user interface.
  • The app simplifies crypto exchanges by making it possible to buy digital assets via debit cards, credit cards, and even cash.
  • It combines a wide range of security features that include; encryption, biometrics, pin code, and open-sourced codes to preserve the integrity of the app.
  • The app has very low latency and some of the fastest bitcoin transaction processing speeds.

Cons:

  • One may consider the number of digital currencies supported by the mobile wallet limiting.
  • It is still a hot wallet, and this implies that it is susceptible to internet threats like remote hacker access and ransomware.
  • Some essential services, like phone support, are only available to individuals with a large number of BRD coin deposits.
  • The fact that it supports credit/debit cards and bank transfers beats its intention of anonymous trading as their transactions can always be tied back to a specific crypto account.

BRD wallet compared to competitors:

Comparing BRD with Infinito crypto wallet apps.

BRD and Infinito are both technologically advanced and highly innovative crypto wallet apps. Equally, Their bots have similar attention to account security as they both advocate for a strong password and biometric backups. However, BRD pales in the face of Infinito when it comes to the number of supported cryptocurrencies and the app’s ease of use. While BRD supports just a handful of coins and tokens, Infinito hosts 2000+ digital currencies.

Comparing the BRD crypto wallet app with Trezor hardware wallet.

The Trezor hardware wallet is superior to the BRD wallet app in three key security and operational areas. First, it stores the owners’ coins offline. Secondly, it has the backup of the physical on-device button used to authorize any crypto transaction. And lastly, it supports more coins and tokens. One may, however, consider the BRD wallet app easier to acquire as it is freely available, easier to use, and more beginner-friendly.

Customer support:

BRD wallet has a fairly responsive customer support team that you can engage with on the live chat, through email or one of their social media handles. This team is multilingual and can communicate in over 13 languages.

The only downside is that you need to buy and maintain a balance of 2,500+ BRD tokens to have access to phone support to BRD’s customer service team. 

Verdict: Is the BRD crypto wallet app safe?

Several features of the BRD crypto wallet app give us a lot of confidence about the security of their wallets, and the safety of private keys stored therein. These include its open-sourced technology, the use of a passcode, the integration of Biometric security features, and the backup seed. BRD crypto app has an above average safety score, but we recommend that you first invest in a very strong antivirus before installing the crypto wallet app. 

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Crypto Daily Topic

Blockchain Use Case: Know Your Customer and Anti-Money Laundering

Recent studies show that it costs about $6,000 for a financial institution to onboard a new client. Moreover, collating the data of the new customer may end up taking 2 to 4 weeks, depending on a country’s regulation.

Recent studies show that it costs about $6,000 for a financial institution to onboard a new client. Moreover, collating the data of the new customer may end up taking 2 to 4 weeks, depending on a country’s regulation.

Recent studies show that it costs about $6,000 for a financial institution to onboard a new client. Moreover, collating the data of the new customer may end up taking 2 to 4 weeks, depending on a country’s regulation.

Unfortunately, financial institutions cannot avoid these costs entirely since there are mandatory laws requiring banks to record details of all their customers. These laws are commonly known as know your customer (KYC) and anti-money laundering (AML) policies that are enforced by the government under the Bank Security Act. Essentially, the laws are meant to deter illegal financial activities such as financial identity theft and tax evasion. 

Maintaining compliance with these regulations usually involves tedious paperwork alongside the numerous and expensive costs involved in the process. Additionally, clerical errors when collecting customer’s personal details may lead to inefficiencies in collating the entire data. 

With the advent of blockchain technology, KYC and AML compliance can be made easier and cost-effective by leveraging the abilities of smart contracts and decentralised applications (dApps). 

But before we can look at how Blockchain can help organisations maintain compliance, let’s first understand the current state of KYC and AML laws.

Know Your Customer and Anti-Money Laundering Policies 

Organizations, particularly those in the finance industry, are required by law to check the identity of their clients before and during doing business with them. This concept has even been extended to other business models – accelerated by the predominance of corruption, financial terrorism and tax evasion cases. Know your Customer (KYC) policy also protects customers from crimes such as financial identity theft. 

On the other hand, Anti-Money laundering (AML) law is designed to stop criminals from making money through illegal activities. It also makes it possible for banks to detect and report suspicious financial crimes. 

Currently, institutions maintain KYC and AML systems via digital accounting and hardcopy files. This creates room for errors either by the task force managing the information or technical failure of the devices being used.

It becomes even harder for multi-national corporations given the sheer amount of time required to verify and collate numerous data. When you factor in the operational costs and the time required to ensure the process flows seamlessly, it’s easy to see why blockchain technology can be of much help. 

How Blockchain can be Used to improve KYC and AML Compliance

Blockchain technology is a decentralized, immutable and distributed ledger that records transactions chronologically in near real-time.  These are characteristics the financial industry can tap into to improve KYC and AML compliance. They can do this in the following ways: 

  • Distributed Client Data Collection 

Using Blockchain, a KYC and AML registry can be created; through which only authorised banks and financial institutions will have access keys. This will help accelerate a client’s onboard process since each time an institution needs the client’s details, they’ll only have to request for the private keys to access the data. 

Simply put, the technology will simplify data gathering, processing and verification which translates into saving more time and money compared to traditional KYC systems. Reduced onboarding time through blockchain-based KYC systems also increases confidence in the financial service provider.

Additionally, the newfound interoperability in terms of sharing data means that banks and regulators will communicate efficiently, thus, improving compliance. As such, regulators will be notified of violations in real-time and respond almost immediately. 

  • Data Protection and Management 

Identity theft, being one of the most common financial crimes, can easily be mitigated by a blockchain-powered KYC system. When a customer feeds their background information into the blockchain ledger, the data is cryptographically hashed; making it impossible for anyone to corrupt or change it in any way. The security is further improved by the decentralized nature of the ledger technology, thereby eliminating the risk of cyber-attacks which are associated with having data held in a central location. 

Thanks to the improved security, data interoperability can safely be executed  unlike when using  traditional siloed KYC infrastructures. As such, banks don’t have to process data all over again every time a client uses a different product/service under the same bank. 

  • Less Paperwork 

Incorporating Blockchain into the current KYC and AML registries can digitize the existing infrastructure. This is achieved by using smart contracts that create, read, and verify client details automatically, reducing the cumbersome paperwork involved in the traditional process. 

In the current KYC and AML systems, a client’s background information is stored separately in various institutions like banks, hospitals, and motor vehicle registry servers. This means that a new customer has to fill in loads of paperwork when using services offered by these institutions. Further, in case a customer switches from one bank account to another, the new one has to conduct a KYC procedure again resulting in tiring paperwork for both the client and the bank. 

Blockchain can solve this by providing a distributed ledger where all the client’s details are stored and can be accessed by various institutions. 

  • Revamp KYC and AML Procedures

Blockchain is a relatively new technology that is still finding use in various industries. As such, it’s incorporation into KYC and AML procedures can upgrade the current systems to stay up to date with the new technology trend. This is essential for institutions considering the increasing demand to create mobile apps to allow users to access services remotely. The apps come with security flaws, e.g. vulnerability to hacks, which can be best solved by blockchain cryptography algorithms.

Besides, as institutions continue to extend their market outreach, upgrading to blockchain KYC solutions is an ideal way to step up their current infrastructure to accommodate the growing number of customers. At the same time, considering that tax fraudsters are always devising new ways to commit crimes, adopting blockchain solutions upgrades security measures to counter the new threats. 

Conclusion

Blockchain solutions bring in the much needed efficiency into the customer due diligence process, saving an institution’s money and time. Consequently, these resources can be channeled to other core administrative operations, improving the overall service delivery. Ultimately, financial crimes and compliance violations will be reduced in the long haul. 

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Crypto Daily Topic

How Blockchain can Improve Trade Finance

Blockchain technology continues to dominate headlines across the world thanks to its revolutionary solutions. In fact, an almost never-ending list of projects have been rolled out in various industries, demonstrating the benefits of this technology. 

Blockchain technology continues to dominate headlines across the world thanks to its revolutionary solutions. In fact, an almost never-ending list of projects have been rolled out in various industries, demonstrating the benefits of this technology. 

Blockchain technology continues to dominate headlines across the world thanks to its revolutionary solutions. In fact, an almost never-ending list of projects have been rolled out in various industries, demonstrating the benefits of this technology. 

The global trade finance market in particular is a fertile ground for blockchain solutions given the inefficiencies and fraud vulnerabilities plaguing the industry. The paper processes involved in the current trade finance framework need to be upgraded to digital operations and blockchain could play a big role in this transformation. 

How  Trade Finance Works

Basically, blockchain solutions aim at filling the gaps in an industry’s operational processes. For this reason, it helps to understand how the trade finance industry runs, so as to identify blockchain’s potential entry point. 

Trade finance refers to the financial products and companies that facilitate international trade. This means that there are several third-parties involved in a successful trade, adding cumulative costs. 

For example, imagine a local company seeks to import goods from an overseas company. The importer needs to pay for the goods but is hesitant to do so before full proof that the goods will arrive as ordered. The exporter on the other hand is also hesitant to ship the goods without proof that payments will be sent for the goods supplied. This is where intermediaries come in.

To ensure that both companies keep the end of their bargain, the importer’s bank sends a letter of credit to the exporter, promising to pay for the goods. However, the payment can only be made once the importer receives a document showing that the goods have been loaded into a cargo for shipping. 

This trade finance framework has been in place for quite a long time, with lots of paperwork being sent back and forth between the importer and exporter. It gets even more intricate with the involvement of freight forwarders, insurers and other small companies, making it prone to errors and frauds; not to mention the time and money used in the process. 

Utilizing Blockchain in Trade Finance

Blockchain, as a distributed ledger system, has the ability to streamline trade finance by creating an  end-to-end network where exporters and importers can engage directly. Here’s a quick primer on how blockchain can improve trade finance:

i) Increased Efficiency

By eliminating the need for an intermediary, blockchain can create a trade finance ecosystem where the importers and exporters share trade-related data in real-time. This would go a long way into minimizing delays and errors, thereby cutting the cost of documentation and increasing transaction speed.

ii) Maintaining compliance

A typical trade finance transaction requires the constant update of documents especially those related to regulatory and financial policies. This results in numerous paperwork and an opportunity for errors leading to expensive fines and lawsuits. 

With a blockchain-based finance trade platform, all the necessary data is stored in a decentralized ledger for relevant parties to access. As such, it becomes easier to update the documents in compliance with the relevant authorities. 

iii) Transparency 

Since blockchain is decentralized, all involved parties in trade finance transactions can view and approve the necessary documents throughout the transactional cycle. What’s better, the ledger system can keep an account of all transactions including the past and the recent ones, all in a tamper-proof record. This way, it is easier for financial institutions to conduct an audit on all transactions, further reducing the risk of fraud. 

iv) Eliminates Double Spending 

Blockchain enables traders to initiate smart contracts which ensures that all trading procedures are dutifully executed. For importers, smart contracts ensure they only pay for the right amount of goods as ordered while ensuring the exporters don’t change the number of goods. As such, there won’t be a scenario where the importer spends more than what is documented in the original bill of lading. 

v) Tracking of Goods

One of the most classic applications of blockchain is in the supply chain, where it is applied to track goods and streamline the process. Trade finance’s intricate supply chain can therefore benefit a lot from the integration of blockchain into its logistics. As such, it’ll be easier for importers to track their goods and even mitigate potential delays, which increases confidence between trading partners. 

More advanced trade finance blockchain solutions also offer special tracking options such as weather conditions, temperature and safety of the goods. Such details are essential when shipping delicate or weather-sensitive goods. 

However, before blockchain can be fully integrated into the trade finance industry, there are a couple of improvements that should be made.

  • Interoperability

Currently, it is quite difficult to implement blockchain solutions in trade finance given that the parties involved often work independently. For blockchain to penetrate the trade finance industry, the global trading partners, financial institutions, shipping companies, and other key stakeholders need to talk in the same digital language. 

Unfortunately, to some of the parties involved, trade finance isn’t necessarily their highest priority. So, they might not be interested in switching to blockchain solutions. In the case of a bank, for instance, the financial support they provide to importers and exporters is just a piece of their larger service package. 

  • Security Vulnerabilities

Blockchain by itself is a secure technology leveraging the power of cryptography to safeguard all transactions, or rather data, recorded in the system. But, the technology has to be modified to suit the trade finance market. Usually, the modification is done using additional technologies and coding languages, which end up creating loopholes in the ledger’s security. 

  • Regulatory Barriers and Costs 

Blockchain is a new technology whose concepts and functionality hasn’t been adequately addressed by existing regulations. This explains why trade finance executives have a problem adopting blockchain solutions, despite their evidential benefits. 

Blockchain developers and entrepreneurs have also been on the receiving end of harsh government regulations, crippling their efforts in developing better blockchain solutions for trade finance. 

On top of it all, upgrading from the existing trade finance infrastructure to blockchain-based solutions is overly expensive. 

Conclusion 

Trade finance has for long played a huge role in the economic growth of every country. While it’s current framework serves the purpose, the industry could benefit from upgrading to blockchain, especially in the current modern times where most activities run on technology. Nonetheless, the success of blockchain technology in the trade finance industry hinges on the wide-scale adoption of the technology. 

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Cryptocurrencies

What is BitTorrent (BTT)?

With blockchain came all manner of possibilities. From the ability to breed virtual cats, to tracking things from source to end. One blockchain project has a big vision: to decentralize the web. This project is Justin Sun’s Tron, and it aims to build a cost-effective, global, and digital content-sharing platform. 

With blockchain came all manner of possibilities. From the ability to breed virtual cats, to tracking things from source to end. One blockchain project has a big vision: to decentralize the web. This project is Justin Sun’s Tron, and it aims to build a cost-effective, global, and digital content-sharing platform. 

With blockchain came all manner of possibilities. From the ability to breed virtual cats, to tracking things from source to end. One blockchain project has a big vision: to decentralize the web. This project is Justin Sun’s Tron, and it aims to build a cost-effective, global, and digital content-sharing platform. 

BitTorrent is a project that already blazed the trail as far as decentralized content-sharing is concerned,  harking back to way before blockchain existed. 

With Tron’s grand ambition to decentralize the internet and BitTorrent’s protocol, there couldn’t be a better match than the two.

What is BitTorrent? 

BitTorrent is a peer-to-peer communication protocol for transferring large files and data over the internet. Files can range from TV shows to movies, to songs, to video clips, and so on. 

The protocol is so widely used it accounted for 3.35% of the entire web in February 2013. To use BitTorrent, senders and receivers use any of Bitcoin clients, e.g., uTorrent qBittorent, Deluge, Zunlei Thunder, and several others. 

Created by programmer Bram Cohen in 2001, BitTorrent is used by 170 million people each month. 

How Does BitTorrent Work? 

The working of BitTorrent can be explained using the terminologies’ seeds’ and “leeches.’

Seeds are the people who host files, or ‘torrents’. Seeds usually break down the files into several pieces so users can download them faster. Anytime you’re downloading a file from a BitTorrent client, you receive different pieces of the file from multiple hosts or seeds. After you download a file, you’re encouraged to become a seed, too, in order to promote the network.

When you opt not to seed, you earn the title of a leech. The protocol relies on more people becoming seeds, which is why leeching is frowned upon. 

What is BTT Token? 

BTT is a crypto token that runs on the Tron Network, much like how ERC-20 tokens on Ethereum’s blockchain. The token is used to power file sharing through the BitTorrent protocol.

As the white paper puts it: “BTT acts as a general-purpose mechanism for transacting in computing resources shared between BitTorrent clients and a liquid market of service requestors and service providers.” 

BTT was created after BitTorrent was purchased by Justin Sun, founder of the Tron blockchain and cryptocurrency.  As Sun said in the press release: “In one giant leap, we can introduce blockchain to hundreds of millions of users around the world and empower a new generation of content creators with the tools to distribute their content directly to others on the web.”

What does the BTT Token Do?

After the BTT token was announced, many users questioned its necessity since BitTorrent has been in existence for long, and users can use the protocol without the need for a token. 

So, why does the crypto world need the token? 

First of all, BitTorrent users can now pay for faster download speeds – with the BTT token. Currently, anyone can download files using the BitTorrent protocol via any of its clients for free. This will not change after BTT. The only difference is the token will incentivize individuals to share more data. 

This will work through users paying BTT to hosts in order to get faster download speeds. The idea is that this incentivizing mechanism will help improve the overall efficiency of the BTT protocol: faster speeds, higher quality, and improved content. This will improve the experience of everyone involved.

Another use of BTT is users will be able to purchase priority access to hosts. Instead of being lumped together with other users, you can buy faster and better-tailored services. Moreover, you get continued access to files as well as the use of others’ resources in the network. This matters, since usually, a user has no incentive to continue hosting a file after download. But with the BTT token in play, they can keep hosting the file on the network. 

For more details on the usability of the token, check out Sun’s explanation in this YouTube video.

Tokenomics of BTT

BTT has a total supply of 990, 000, 000, 000. The coins were distributed as follows:

  • 20% went to the TRON foundation
  • 19.9% went to the BitTorrent’s ecosystem
  • 19% went to the BitTorrent team and the BitTorrent foundation
  • 17% was distributed to the public
  • 10.1% went to Tron’s airdrop program
  • 10% went to the BitTorrent airdrop program
  • 4% remained as partnership tokens

The coin is currently trading at $0.000250 with a market cap of $53 million while ranking at #81 by market cap. It has a 24-hour volume of $70 million and a circulating supply of 212, 116, 500, 000. BTT had an all-time low of $0.000139 on March 13, 2020, and an all-time high of $0.0011861 on May 28, 2019, according to Coinmarketcap.

History of BitTorrent

Bram Cohen, an American programmer, is the brain behind BitTorrent. He created the protocol in 2001, going on to release an updated version in 2013. In June 2018, Tron founder Justin Sun bought it for $120 million in its bid to expand Project Atlas – an initiative by the Tron project to decentralize the internet with the power of blockchain. 

After the deal, BitTorrent soon conducted an initial exchange offering (IEO) via Binance’s Launchpad program, raising $7.2 million in a record 15 minutes. 

Where to Buy and Store BTT 

You can buy BTT form an endless list of exchanges, including Binance, Huobi, Cat.Ex, CoinEX, UpBit, Bithumb, Poloniex, and so on.

Some exchanges will allow you to buy the token with Fiat, while in others, it’s only available in exchange for cryptos such as BTC, BNB, ETH, XRP, and so on. 

Since BTT is a TRC-token, you can store it in any wallet that supports TRX. Some popular options include Bitpie, Ledger, Atomic, Exodus, Math, Hoo, and so on. You can find the full list of choices on Tron’s website. 

Final Thoughts

The BTT token will tokenize the already successful BitTorrent network and, in so doing, improve its functionality in several ways. Some may see the whole thing as an attempt to reinvent the wheel. Others think it’s a  fresh idea. The crypto community just has to wait and see how this one plays out. 

Categories
Cryptocurrencies

How Can the Energy Industry Benefit from Blockchain?

Blockchain is usually perceived as only the building block of the much-hyped virtual currencies. As such, it wouldn’t seem like there is much technology can do for the energy industry. After all, what do cryptocurrencies have to do with the process of generating and distributing electrical power?

Blockchain is usually perceived as only the building block of the much-hyped virtual currencies. As such, it wouldn’t seem like there is much technology can do for the energy industry. After all, what do cryptocurrencies have to do with the process of generating and distributing electrical power?

Blockchain is usually perceived as only the building block of the much-hyped virtual currencies. As such, it wouldn’t seem like there is much technology can do for the energy industry. After all, what do cryptocurrencies have to do with the process of generating and distributing electrical power?

But from an insider’s look, blockchain has the potential to spur growth in the energy sector through its transformative benefits. More so, the energy industry is constantly changing – as seen from the entry of new innovations such as smart metering, electric vehicles, and renewable sources of energy. As such, blockchain technology is a viable solution to help improve efficiency in the industry. 

Ways Blockchain can be used in the Energy Industry.

Blockchain technology promotes transparency and immutability of stored data through its decentralized nature as a ledger system. These characteristics can be beneficial to the complex network of participants in the energy distribution chain, who often suffer from siloed infrastructures and unexpected inefficiencies. 

Here is a detailed look into six major benefits blockchain brings in to the energy industry; 

i) Improved Data Management 

Being a ledger system, blockchain can serve as a database providing users with secure and real-time energy usage data. Other important energy statistics, such as market prices, marginal costs, and fuel prices, can also be stored in the system to allow users to monitor how much they spend on energy. 

Additionally, the blockchain-based database system makes it impossible to corrupt the stored data, which helps enhance transparency. This saves energy providers as well as customers the financial costs associated with accidental clerical errors and intentional data manipulation.

ii) Peer-to-peer Energy Trading 

Over the last few years, energy production has shifted from large, centralized power plants to smaller power generation sources such as windmills and solar farms. This is especially true in “distributed energy grid” systems where electricity is generated and stored by small power plants that are connected to the larger electric grid. 

The integration of blockchain into the system allows the smaller farms to sell excess power to other consumers, decentralizing the energy distribution network. Essentially, the technology creates a peer-to-peer energy market, reducing the role of wholesale and central authorities entities. This helps promote competitive market prices.

iii)Enhance Commodity Trading 

Commodity trading in the energy sector involves massive ledger systems that keep account of the commodity prices at specific moments. Maintaining, securing, and updating these records requires significant resources in terms of money and time, which could otherwise be used to improve other core areas of the trading cycle. 

Applying blockchain technology to commodity trading makes it easier and more affordable to securely record trading data as compared to traditional ledger systems.

iv) Tokenizing Energy

Blockchain can be used to create tokens for use within the energy industry. One of the uses of these tokens is to facilitate a variety of energy market transactions, such as paying bills directly to the provider without involving an intermediary.

In addition to being a medium of payment, the tokens can also serve as an incentive. For instance, by tokenizing the energy grid, consumers can earn tokens for reducing energy wastage in their households. 

Similarly, a tokenized energy grid means that energy is expended depending on household needs. This not only helps with the reduction of energy wastage but also cuts down on utility bills since consumers pay for the exact amount of power they need.

v) Propel Clean Energy as a Mainstream Option 

As governments and environmental activists advocate for clean energy, blockchain can be used to promote the use of renewable energy. This can be achieved by creating a blockchain-based smart grid that allows consumers to compare and choose their energy providers. The transparency in energy choices facilitates the integration of clean energy in the market, where renewables could become consumers’ favorite choice due to their affordability. 

The State of Blockchain in the Energy Industry

Currently, blockchain hasn’t fully permeated the energy industry despite its promising benefits. This is not to say that there aren’t any blockchain-based projects carving a niche for themselves in the vast energy market. In fact, some of them have even partnered with their respective governments to improve service delivery.

However, a good number of blockchain projects are still under development and are yet to materialize their solutions. Their delayed success can be attributed to the following challenges:

  • Conservative Industry Players

Success in an older industry like energy demands solid working experience and knowledge, considering that it’s intertwined with other complex sectors such as law and finance. Therefore, blockchain entrepreneurs need an insider’s insight on how blockchain can be beneficial to the energy industry.

Unfortunately, those with vast working experience and market knowledge of the energy industry aren’t inclined to blockchain solutions. They prefer old hat solutions which have served them fairly well for long. Probably, as the crypto space matures, key industry players in the energy sector will warm up to blockchain solutions. In the meantime, educating the stakeholders on the benefits of blockchain might be helpful.

  • Legacy Gatekeepers 

The integration of blockchain into the energy industry will result in a decentralized market. While such a marketplace is beneficial to the consumers, it threatens the existence of major banks and businesses who, for years, have benefited as intermediaries. Even without taking out their role as the middleman, their control will be diluted once blockchain enters the industry. As such, the industry giants are committed to slowing down the integration of blockchain into the energy industry so as to retain their control over the market. 

  • Strict Government Regulations 

Blockchain has been met with the same type of austerity measures that are imposed on virtual currencies. Likewise, the global energy market, being one of the highly regulated industries in the world, hasn’t been easy on blockchain technology either. It gets even worse knowing that the industry is run by conservative stakeholders who are skeptical about blockchain technology. As such, designing a blockchain solution that can find favor among industry players and energy-sector regulators is quite difficult. 

Conclusion 

Blockchain is a relatively new technology whose awareness is limited to the tech-savvy population. So, the idea of this technology finding use outside the cryptocurrency market is still catching on. In an older industry such as the energy sector, the technology will certainly take time before industry players see it as a solution to existing problems. Hopefully, as aggressive blockchain developers continue to design solutions for the industry, their solutions might serve as the entry point of blockchain into the energy industry. 

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Crypto Daily Topic Crypto Education

The Bitcoin Halving Aftermath – Trends and Implications

The third Bitcoin halving event, which happened on May 11, brought mining rewards from 12.5 BTC down to 6.25 BTC per block. This halving raised many questions, mostly on the topic of how the price will react to the halving and if Bitcoin has already “priced in” the halving.

The third Bitcoin halving event, which happened on May 11, brought mining rewards from 12.5 BTC down to 6.25 BTC per block. This halving raised many questions, mostly on the topic of how the price will react to the halving and if Bitcoin has already “priced in” the halving.

The third Bitcoin halving event, which happened on May 11, brought mining rewards from 12.5 BTC down to 6.25 BTC per block. This halving raised many questions, mostly on the topic of how the price will react to the halving and if Bitcoin has already “priced in” the halving.

Many analysts have made their predictions, ranging from Peter Shiff’s bearish prediction of Bitcoin going to 0 due to it having no underlying value and utility, all the way to some analysts who called for $1,000,000 Bitcoin. However, the market should pay attention to the short-term price implications and trends, as well as tools that can measure them.

What does the public say?

We can have a general representation of what the public thinks about when it comes to the Bitcoin halving by looking at Google Trends.

While a brief check of the term “bitcoin halving” will show an enormous increase in interest, we don’t know where that interest is coming from (in a non-geographical sense). We have to dive deeper and see if the ones interested in the halving are existing investors or rather new ones.

If we take a look at the number of searches for the terms “buy bitcoin” and “sell bitcoin” we can see that there hasn’t been much of an increase from before the halving, though some difference exists (“buy bitcoin” and “sell bitcoin” charts look almost exactly the same, so there is no need to show both).

We can also spot one more difference between the two pictures above, and that is countries with the most interest in these terms. While the term “bitcoin halving” sees most interest from highly-developer countries such as Switzerland, Netherlands, and Austria, “buy bitcoin” and “sell bitcoin” terms see the greatest interests from less developed countries or countries that have inflation problems.

We can also see that the Fear and Greed Index does not show any signs of a mega-optimistic market that could spark up an explosive price increase that happened after the first two halvings either.

What does all this mean?

This analysis brings us to the conclusion that, while there is an enormous interest in the bitcoin halving itself, it mostly comes from already existing cryptocurrency enthusiasts. Meanwhile, people that are interested in buying and selling Bitcoin are mostly coming from unstable regions and use Bitcoin as a “monetary escape” from their native currencies’ inflation rather than as an investment opportunity, which got that much better due to the halving.

This analysis does not claim that there is no new interest in Bitcoin, but that people should be conservative with their short-term predictions, as the crypto market will most likely not see such an explosive price increase as it has seen after the previous two halvings. However, the price is bound to increase over time due to the natural laws of supply and demand, though that price increase may be slow and gradual.

Today’s crypto market major flaw

While the Bitcoin market has its ups and downs, it prides itself on being revolutionary, as it strives to unite the world under one decentralized deflationary currency with a fixed supply. However, financial institutions such as the Chicago Mercantile Exchange have created the Bitcoin Futures market, which may prove to be detrimental to the future of cryptocurrencies.

While these financial institutions are well-known and bring more interest to Bitcoin, they trade Bitcoin futures that do not settle in Bitcoin, meaning that they trade thin air that is correlated to Bitcoin through their platform. This causes a major problem to the actual Bitcoin community as it essentially “prints” Bitcoin and creates a place for infinite supply as well as price manipulation.

When talking about the Bitcoin halving, its main purpose is to act as a deflationary force. However, with Bitcoin futures not having to care about the Bitcoin supply whatsoever, the deflationary effect of the Bitcoin halving gets drastically reduced.

How to approach Bitcoin investing?

The cryptocurrency market is a space where people invest their money because of two main reasons:

  1. Speculation (they want to leverage the volatility of the markets and make a profit and do not care about Bitcoin’s “mission”)
  2. Support (they truly believe in the technology and want to make a profit by “betting” on the future)

In both cases, the fundamental reason for investing in the market is profit. Miners mine for profit, traders trade for profit, everyone is here to make a bit of money. However, many people get stuck in a certain mindset (which is especially the case with Bitcoin bulls or bears) and stick to it no matter the market circumstances, which ultimately makes them lose money in the long run.

People should approach crypto trading and investing with caution and without emotion. They should assess the circumstances and use the tools at their disposal (as well as the market sentiment) to create the best prediction of where the market will move. They should also expect less and less explosiveness as time passes. However, the Bitcoin halving is certainly a solid indicator of where the price might move in the future, simply due to the natural “laws” of how self-sustaining markets work.

 

Categories
Crypto Daily Topic

Is Quadratic Voting the Path to Fair Governance?

The current world’s state of affairs could use more representation, more equity, and more fairness. From disproportionate distribution of resources to corruption to inequalities to the monopolization of technologies for the benefit of the wealthy, the current system is massively fractured. Unfortunately, these issues get trampled on as people lack a clear voice with which to voice their disenfranchisement. 

The current world’s state of affairs could use more representation, more equity, and more fairness. From disproportionate distribution of resources to corruption to inequalities to the monopolization of technologies for the benefit of the wealthy, the current system is massively fractured. Unfortunately, these issues get trampled on as people lack a clear voice with which to voice their disenfranchisement. 

The current world’s state of affairs could use more representation, more equity, and more fairness. From disproportionate distribution of resources to corruption to inequalities to the monopolization of technologies for the benefit of the wealthy, the current system is massively fractured. Unfortunately, these issues get trampled on as people lack a clear voice with which to voice their disenfranchisement. 

Voting has always been the way in which we express our preferred choices in issues that matter to us. But that doesn’t mean voting in itself is fair or democratic enough. 

Quadratic Voting

Quadratic voting (QV)  is a novel model of voting that places emphasis on how strongly voters feel about an issue, rather than how many of them prefer a particular choice. QV can ensure that the voice of smaller groups is not stifled by the ‘tyranny of majority.’ It can be used in elections, institutions, governance, blockchain-based decision making, and so on. 

Why ‘Quadratic’? And How Does it Work?

“Quadratic” implies squared or multiplied by self. 

In quadratic voting, each participant is given the same number of credits with which they can use to vote on an issue. The first casting will cost one credit. The cost of additional votes is quadratic, not linear. This means the marginal cost for casting more than one vote is far higher than that for casting one vote. 

The formula for quadratic voting is as follows: 

Cost to voter = (Number of votes) to the power of 2. 

So, quadratically, one vote will cost you one credit, two votes cost you four credits, three votes will cost you nine credits, four votes will cost you 16 credits, and so on. 

Each person is given a maximum of a certain number of credits.

Let’s imagine in this example that everyone is given a maximum of 25 credits. This way, you can vote on 25 small issues, or you can vote five times on an issue that you really care about. In any case, you use all your votes. This will prevent participants with higher buying power from buying the most votes and potentially influence the outcome unfairly. 

The idea is that while everyone gets to increase the chances for their preferred issue winning, the quadratic nature of the vote ensures that those who care the most about a particular issue are the ones who will cast the most votes for them. 

The History of Quadratic Voting 

The idea of QV harks back the 70’s and is credited to Vickrey, Clarke, and Groves (VCG).  While the idea was met with enthusiasm, what’s known as the VCG mechanism was not robust enough to be implemented, and the idea lay dormant for many years. 

The current, sufficiently robust QV was rediscovered by Glen Weyl in 2012, who then began working on it with Steven Lalley and Eric Posner. 

Weyl has also expanded the idea in his book “Radical Markets: Uprooting Capitalism and Democracy for a Just Society.” 

Enter Blockchain 

Blockchain – thanks to its immutability, decentralization, and transparency, fits in perfectly with the ideas of quadratic voting. It can ensure a transparent, tamper-proof voting process. But when meshed with the idea of QV, such a process is even fairer. 

Weyl linked up with Vitalik Buterin, the creator and Ethereum, and the pair, together with Harvard economist Zoe Hitzig, published a paper titled “Liberal Radicalism: A Flexible Design for Philanthropic Matching Funds. The paper delves further into the idea and illuminates how quadratic voting can help achieve more egalitarian societies. 

Application of QV: Colorado Use Case

Quadratic voting was used by Democrats in Colorado to decide which appropriation bills to give precedence. 

Legislators were allocated 15 tokens for each to use on their preferred 15 bills. This, however, didn’t work well. They then sought help from Weyl, who explained how QV could provide a solution.  

According to Weyl, QV is a solution to the “tyranny of the majority” issue. Traditional voting assumes that every participant cares the same way for an issue, which is mostly not true. In truth, some people care deeply about an issue; others care moderately, while others do not care at all. 

In the Colorado scenario, each legislator was allocated 100 tokens. If a legislator voted more than once for an issue, it would cost them one token for each. In this way, legislators were able to prioritize issues that they particularly cared about the most. The Colorado QV experiment was largely seen as a success. 

How does Quadratic Voting Differ From Traditional Voting Systems? 

In order to get a clearer view of QV, let’s get a look at other voting systems. 

First-Past-the-Post: In this system, a candidate can win without necessarily getting the majority of the people to vote for them. For example, candidate A can get 40% of the votes, B, 36%, C, 28%, and D, 15%. While A wins, we know they got the most votes, but not the majority of the votes. 

Proportional Voting: This voting system seeks to remedy the uninclusive nature of first-past-the-post voting. Here, if 40% of the electorate votes for a particular party, then 40% of seats in the legislature will be given to that party. However, this system of voting is not applicable when binary decisions,e.g., yes or no, have to be made. 

Ranked Choice Voting: In this system, each voter ranks their preferred candidates. The candidate with the least amount of votes is eliminated in each round, with their votes redistributed to the rest of the candidates in the next round. Although this model might be fairer, it’s extremely complex and time-consuming. 

Quadratic Voting: Quadratic voting is fairly complex too, but arguably, it best fairly represents the interests of small groups of people who care deeply about an issue. By marginally increasing the cost of each additional vote, it disincentivizes people who don’t particularly care about an issue from voting for it. It also allows voters to demonstrate just how strongly they feel about an issue – at the expense of foregoing voting on other issues on the table. 

Why is QV Uniquely Effective? 

QV eliminates the problem of ‘tyranny of the majority’ and ‘tyranny of the wealth majority.’ The first means that even though a majority of people may vote on an issue, the final result does not necessarily reflect the participants’ wishes since the level of passion for each voter differs from the next. 

The second problem means the wealthy minority is better positioned to buy more votes and hence will unfairly skew the vote in their favor. 

QV rectifies these potential pitfalls by taking into consideration the strength of each participant’s choice. It also enforces a limit on the number of voting credits so participants can use those credits for the issues they truly care about. 

The Drawbacks of Quadratic Voting 

As much as quadratic voting is this novel, revolutionary idea, it has its own drawbacks. 

First, it’s extremely dependent on identity. For it to function, it needs a reliable identity system. As it is, identity management is already a challenge to implement. In this age of the internet, it’s all too easy to fake accounts, which involves a user trying to exert undue influence on an issue. 

Second, the world is moving towards more anonymity. Due to this,  transparent QV will not be suitable for all applications or contexts. 

Conclusion

Already, the blockchain has provided a transparent, public, and decentralized platform for collective decision-making. But if we’re to have truly fair processes, that will not suffice. Quadratic voting represents an opportunity to leverage on blockchain and allow voters to express not just their preferences, but the intensity of those preferences. 

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Crypto Daily Topic

Bitcoin’s Third Halving: Here’s what to expect

Bitcoin’s third halving will take place today around 6.50 pm GMT. At the time of writing, Bitcoin is trading at $8783.94, with 18, 374, 362 bitcoins in circulation. The halving will take place at block height 630,000. At the time of writing, we’re at block height 629, 951. The halving will see mining block rewards reduced from the current 12.5BTC to 6.25 BTC. 

Bitcoin’s third halving will take place today around 6.50 pm GMT. At the time of writing, Bitcoin is trading at $8783.94, with 18, 374, 362 bitcoins in circulation. The halving will take place at block height 630,000. At the time of writing, we’re at block height 629, 951. The halving will see mining block rewards reduced from the current 12.5BTC to 6.25 BTC. 

Bitcoin’s third halving will take place today around 6.50 pm GMT. At the time of writing, Bitcoin is trading at $8783.94, with 18, 374, 362 bitcoins in circulation. The halving will take place at block height 630,000. At the time of writing, we’re at block height 629, 951. The halving will see mining block rewards reduced from the current 12.5BTC to 6.25 BTC. 

What is Bitcoin Mining? 

Before we look at the concept of halving and what it’s all about, we need to first understand what Bitcoin mining is, since each depends on the other. 

Bitcoin mining is the process through which people utilize their computing power to process transactions on the Bitcoin network. These people are called miners. 

Anyone can mine Bitcoin. However, the mining process requires a ton of power – thanks to the cryptographic nature of Bitcoin, which requires massive computational resources to verify and confirm transactions. It’s also the reason why Bitcoin mining requires specialized mining equipment known as application-specific integrated circuits, which require significant capital to set up. As a result, Bitcoin mining is done mostly in places with low-cost electricity, with a significant majority of miners stationed in rural China.

Proof-of-Work

Bitcoin uses a ‘proof-of-work’ protocol to verify and confirm transactions. Proof-of-work requires miners to prove they have invested effort in the processing of transactions. This effort includes the time and computational resources to perform the ‘guesswork” of a string of numbers until one finds the right combination (hash) that will unlock the next block. (A block is a file containing transactions and the metadata of those transactions.) Once a block is discovered, the transactions therein are added to the blockchain. 

Miners also protect the Bitcoin network by making it hard to attack. An attack on the network would constitute gaining control of more than 51% of the network hash power. However, the more miners on the network, the harder it is for a bad actor to gain control of the network. 

What is Bitcoin Halving? 

The Bitcoin protocol is programmed to reward miners with bitcoins for every block discovered and for securing the Bitcoin network. Miners are rewarded with bitcoins and transaction fees. 

After every 210, 000 blocks, these rewards are cut in half, which is known as halving or as Bitcoiners have christened it for effect: “halvening.” As a result, the number of the bitcoins that are released into circulation are also halved. This is Bitcoin’s creator Satoshi Nakamoto’s way of preventing inflation for Bitcoin. 

This process is set to take place until around 2140, which will mark the reaching of Bitcoin’s maximum supply. By the time we get there, mining rewards will have significantly dwindled. 

What then will keep them on? Satoshi already covered this. As mining rewards diminish, the network is programmed so that transaction fees will increase.  This will ensure that miners still have the incentive to continue running and protecting the network. 

Why is Halving Significant?

Bitcoin’s halving is significant because it keeps Bitcoin’s supply under deflationary control. This is one of the key differences between Bitcoin and traditional currencies  – which have an infinite supply and thus prone to inflation. For instance, what the US dollar was worth ten years ago is not what it’s worth now. 

There will only ever be 32 Bitcoin halvings, after which no more bitcoins will be released. This will mark the reaching of the maximum supply of Bitcoin. 

In 2009, the reward for Bitcoin mining was 50 bitcoins. After the first halving, which happened in 2012, the mining rewards fell to 25, then to 12.5 in 2016, and today, it will fall to 6.25. 

This model helps drive up demand for Bitcoin. To illustrate this, let’s imagine the amount of gold existing on earth was halved every few years. If the amount of gold was halved after every few years, then it’s conceivably certain that its demand would increase in response. 

Bitcoin’s halving is supposed to set off this chain reaction: 

Reward halving →  Circulation is halved → Supply decreases → Demand increases → Price increases → Transaction fees increases → Miner’s incentive remains, as the value of Bitcoin increases. 

Past Halving Effects on Bitcoin

Bitcoin’s past halvings were, naturally, characterized by a media buzz that increased awareness for Bitcoin. After each event, Bitcoin saw a significant increase in demand in the following year. Whether this surge was occasioned by the halving is still a point of debate. 

In the first halving, which took place in November 2012, Bitcoin was trading at $11. By the end of  2013, it was trading at nearly $1150. The second halving was in July of 2016, at which the currency traded at $650. By the end of the following year, Bitcoin’s value had skyrocketed to nearly $20,000. 

Will the third halving have any effect on Bitcoin’s price? The Bitcoin community is divided on that.

How Different is this Halving? 

Past Bitcoin halvings occurred in a relatively ‘normal’ environment. Today’s Bitcoin halving will happen in a relatively different set of circumstances.

First of all, we now have Bitcoin derivatives, such as stock options and futures. More people are now aware of the existence of cryptocurrencies. The wild spikes of 2017 lent Bitcoin so much clout that made it a household name. 

We also have another entirely unprecedented situation in the midst of the halving: the Coronavirus pandemic, which is shaking the world’s economy to its foundations and threatening a recession only rivaled by The Great Recession of 2008.

As we move forward, it remains to be seen whether the pandemic will muffle a price surge, or whether Bitcoin will defy the gloomy economic forecast. The currency has so far exhibited signs of bowing under pressure, but Bitcoin enthusiasts and investors are betting on a turnaround after the halving. 

Categories
Crypto Daily Topic

Times Bitcoin Has Featured in Pop Culture

Times are gone when Bitcoin was a fringe currency and a fleeting phenomenon not worth much attention. Today, the cryptocurrency has broken into the spotlight and rallied an entire industry of cryptocurrencies into the center of finance. So much that even pop culture has started paying attention. 

Times are gone when Bitcoin was a fringe currency and a fleeting phenomenon not worth much attention. Today, the cryptocurrency has broken into the spotlight and rallied an entire industry of cryptocurrencies into the center of finance. So much that even pop culture has started paying attention. 

Times are gone when Bitcoin was a fringe currency and a fleeting phenomenon not worth much attention. Today, the cryptocurrency has broken into the spotlight and rallied an entire industry of cryptocurrencies into the center of finance. So much that even pop culture has started paying attention. 

From songs to films to TV shows, cryptocurrency is being featured in various ways in the entertainment industry. And crypto fans are lapping it all up since it’s helping to push the industry to the forefront. 

Here are times crypto has featured in pop culture

i) Spiderman: Into the Spider-Verse (Movie)

In the animated Spiderman movie, a ticker at the bottom of the screen announces: ‘Bitcoin hits a new low’ immediately followed by ‘Bitcoin hits a new high.’ The split-second scene is inspired by Bitcoin’s infamous volatility while also poking fun at it. It seems that Bitcoin shoots and plummets within nanoseconds in Spider-Verse. Either way, it’s nice to see Bitcoin exists in alternative universes.

ii) Eminem – Not Alike (Song)

The veteran rapper has not been left behind by the Bitcoin craze. In his 10th studio album released in 2018, Eminem references the cryptocurrency in the song “Not Alike,” singing: “Remember everybody used to bite nickel, now everybody doing Bitcoin.”

iii) The OA (Angel of Death) (Netflix Series)

Fan-favorite series The OA features not just cryptocurrency but also a crypto wallet. In the pilot episode, an elderly woman seeks the help of a detective to find her missing granddaughter. But she has no money, at least in the traditional sense. Instead, she has Ethereum, which is stored in Ethereum wallet Freewallet on her phone. The wallet displays her Ethereum balance. 

iv) Hunt for Wolverine – Adamantium Agenda (Movie) 

Marvel’s 2018 movie: Hunt for Wolverine – Adamantium Agenda mentions Bitcoin. At one point, Tony Stark needs to make payments. Due to the risk of the characters he’s dealing with, the assumption is that he will use the usual untraceable cash. But this time, he must use cryptocurrency. 

v) Pop Music

New on the scene, the Japanese girl group: Kasotsuka Shojo’s name translates to ‘Virtual Currency Girls.’ Each of the eight members represents one cryptocurrency. The band’s members are as follows:

  • 18-year-old Rara Naruse, representing Bitcoin Cash 
  • 16-year old Hinano Shirahama, representing Bitcoin
  • Age-unreleased Ami Amo, representing Ethereum
  • 22-year old Suzuka Minami, representing Neo
  • Age-unreleased Momo Aisu, representing MonaCoin
  • 17-year old Kanako Matsuzawa, representing Cardano
  • 17-year old Koharu Kamikawa, representing NEM
  • 15-year old Hinata Kozuki, representing Ripple

Speaking to Japan today, the group divulged its aim as being to raise awareness on cryptocurrency and its potential for society. “This unit is not here to promote speculation of investment. Out of the numerous existing virtual currencies, we have carefully selected a handful of currencies that are sure to exist in the future in order to broaden the public’s understanding of them using entertainment as our medium.” 

Each of the members dons a mask representing their currency. Their first release was called “The Moon and Virtual Currencies and Me.” 

vi) Fine Art

Bitcoin is now inspiring artists so much as for them to create exhibitions with the currency as the central theme. In 2014, San Francisco living space startup 20Mission used art to express itself. In 2014, the startup held an art show dedicated to Bitcoin. 

vii) Grey’s Anatomy (Series)

Everyone’s favorite medical drama made sure to mention the world’s most popular cryptocurrency. The winter finale of 2017 delved into ransomware and Bitcoin. 

In the episode, Grey Sloan Medical Hospital is dealing with a cyber-attack. Screens are popping with the words, “We own your servers. We own your systems. We own your patients’ medical records.” The hackers then request 4,932 Bitcoin as ransom. (The value was about $20 million) at the time of airing)

viii) Family Guy (Movie)

The animated sitcom which has been running since 1999 has made sure to catch up with the modern currency. In season 14, the show’s protagonist Peter Griffin suggests Bitcoin might be the family’s solution to their financial woes. This is after the family huddles around and prays for a financial miracle, only to find their pockets empty. 

ix) Silicon Valley (TV Series)

In season 5  Silicon Valley, the TV show focuses on cryptocurrency. As it stands now, the depiction by the show might be one of the most accurate and realistic ones yet. From crypto to ICOs to Bitcoin, it covers it all. And rather than creating an unrealistic view, it serves audiences with what’s more likely to happen in the real world. For instance, Gilfoyle’s PowerPoint presentation explaining cryptocurrency is pretty accurate.

So is the depiction of the wild pitfalls that a startup is likely to encounter while launching an ICO. In one scene, Monica (Amanda Crew) warns Richard (Thomas Middleditch) about jumping on the Bitcoin ship, saying, “Before you walk away from stability and gamble your entire company in crypto, there’s another friend of yours I think you should talk to.” 

x) Bitcoin Heist (Film)

In a 2016’s film Bitcoin Heist, an Interpol agent brings together formidable elite hackers to create a team that will track down the world’s most wanted thief. Together, they set on a mission to carry out the ultimate cryptocurrency heist. 

Written and directed by Vietnamese director Ham Tran, the film puts Bitcoin at the center of the action. The movie is now available on Netflix and has an impressive approval rating of 79% on IMDB.

xi) We Miss You: The Bitcoin Dip ( Song)

This is a play on Puff Daddy’s “I’ll be Missing You,” by Crypto Daily, with the catchy tune reminiscing the days when Bitcoin was $10,000 and above. It impresses the hope that although the currency is going through rough and volatile times, it will one day bounce and go past $10, 000 again. At the time of writing, the song’s video has 64, 000 views on YouTube. 

xii) 10, 000 Bitcoins: Laura Saggers

British-born singer Laura Saggers is just like us. In the song 10,000 bitcoins, Saggers imagines the things she would do if she had all that money. From getting her lover a rear-wheel-drive to paying for them to fly, to taking them on a tour of their favorite breweries. But while she doesn’t have the Bitcoins now, “a day doesn’t go by where” she “doesn’t work hard and try.”

Final Thoughts 

It’s impressive to see cryptocurrency has warmed its way into pop culture. While it’s fun for crypto enthusiasts to see their favorite type of currency in entertainment headlines, it’s great to know that for every pop culture mention, more people learn about it. This will slowly push the idea into the mainstream conscience and, hopefully, use it. It will also help to dispel the myths surrounding it, such as that crypto is just a currency for criminals. 

Categories
Cryptocurrencies

Best Cryptocurrency Payment Gateways

Cryptocurrency payment gateways are networks that allow merchants to accept Bitcoin and altcoins as means of payment. Through these networks, users from anywhere can purchase products and services from a business that accepts crypto payments, no matter where it’s situated across the globe. 

Cryptocurrency payment gateways are networks that allow merchants to accept Bitcoin and altcoins as means of payment. Through these networks, users from anywhere can purchase products and services from a business that accepts crypto payments, no matter where it’s situated across the globe. 

Cryptocurrency payment gateways are networks that allow merchants to accept Bitcoin and altcoins as means of payment. Through these networks, users from anywhere can purchase products and services from a business that accepts crypto payments, no matter where it’s situated across the globe. 

As well, merchants that accept crypto can overcome barriers that are associated with traditional modes of payment, such as high fees, mandatory identification procedures, and delays. Also, these businesses convert your crypto instantly, so you avoid the risk of losing money in case of a fall in the prices of crypto. 

In this piece, we’ll look at some of the best crypto payment gateways and what they have to offer. But before that, let’s look at why businesses should accept crypto payments, after all. 

Why Should Businesses Accept Bitcoin?

  • Gain a new breed of customers who prefer paying with Bitcoin
  • Offer customers a way to pay discreetly. 
  • Payments are secure and indelibly recorded on the blockchain.
  • Avoid high costs associated with other payment methods.
  • Build a brand reputation as a forward-thinking company
  • Relieve the transaction cost burden of taking business global 
  • Avoid the chargebacks associated with other payment methods. 

With that, let’s looks at some of the companies that are making it possible for businesses to accept payments. 

i) CoinBase Commerce

This is a payment gateway by the company behind one of the biggest crypto exchanges – Coinbase. CoinBase Commerce facilitates the instant conversion from Bitcoin to Fiat without the business having to request for a withdrawal. The company does not charge any fees for merchants, but you will need to pay a network fee to miners.

Payments will clear in the merchant’s bank account from 1 or 2 to 3 business days, depending on the country. Launched in 2018,  the platform currently supports Bitcoin, Ether, Litecoin, Bitcoin Cash, DAI, and USDC coin. The support of USDC coin is particularly important since it can protect customers from countries with unstable currencies such as Zimbabwe, Uzbekistan, Yugoslavia, and so on.   

ii) Coingate

CoinGate is another Bitcoin payment gateway with great options for merchants. It has a user-friendly app through which merchants can sign up and start accepting crypto payments right away. It currently accepts 50+ coins, including the big hitters like Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. 

On top of that, the platform supports payments from more than 100 countries. The platform levies a fee of 1% per transaction, which is processed within an hour. Another major selling point is Bitcoin, and Litecoin users can send payments over the Lightning Network, which greatly enhances the speed of transactions and with an added layer of privacy. 

iii) CoinsBank

CoinsBank is another trusted crypto gateway that currently supports Bitcoin, Litecoin, Ether, and Ripple. It features a one-click deposit and withdrawal function that is especially useful to large-volume traders. 

Crypto payments are instantly converted to Fiat currency, so the business will not suffer from any impending price falls of the crypto in question. CoinsBank currently supports the latest security features, such as a two-factor authentication system that helps deter hackers and other types of fraud. 

iv) BitPay

This is one of the most trusted cryptocurrency payment gateways, boasting of clients such as Microsoft, Neteller, airBALTIC, and so on. The platform employs a two-factor authentication to ensure your funds are protected, with a straightforward process that’s easy to use for the less tech-savvy clients. 

Small businesses and startups are at an advantage with BitPay, as they get to accept payments without a fee for the first $1,000 of transactions before incurring a levy of 1% thereafter. BitPay currently supports all countries in the world except the following: Algeria, Bangladesh, Bolivia, Cambodia, Ecuador, Egypt, Indonesia, Iraq, Kyrgyzstan, Macedonia, Morocco, Nepal, Pakistan, and Vietnam. 

v) CoinPayments

Launched in 2013, BitcoinPayments is one of the surest crypto payment gateways out there. This platform excels with the sheer number of cryptocurrencies that it supports – over 1890 at the time of writing. CoinPayments has plugins for big-name stores, such as WooCommerce, Shopify, OpenCart, Magento, OsCommerce, WP eCommerce, and so on. The platform is available in more than 182 countries at the time of writing.

CoinPayments also supports instant confirmation transactions and provides a vault that you can use to better manage your spending by choosing when to access it. The platform is available on both iOS and Android so that you don’t miss out on the crypto revolution. You also have access to a multi-coin wallet equipped with top-notch security. However, you should not store funds for too long in the wallet, as online crypto wallets are vulnerable to hacking. 

vi) Spectrocoin

This is a crypto payment gateway based in Europe. Spectrocoin currently supports Bitcoin, NEM, and DASH cryptocurrencies. It has plugins for several merchants, including ZenCart, Drupal, VirtueMart, Magento, WooCommerce, PrestaShop, and so on. 

With support for over 150 countries, Spectrocoin instantly processes your payments and converts them to your preferred Fiat denomination, so you avoid the risk of volatility. 

vii) GoURL 

GoURL is a crypto payment gateway that works with almost all Bitcoin wallets and is compatible with Bitcoin debit cards, including BitPay card. The platform confirms transactions in 30 seconds, and users who don’t have a website can set up a one-click payment solution through GoURL’s Monetiser Online function.

There are no KYC procedures, no ID needed, no background verifications, etc. GoURL has plugins for customers such as Bitmain, BTC.com, Bueno Wines, View2be, Rodeo Gold, and so on. 

viii) Ikajo

Ikajo is a mainstay in the payments industry, with over 15 years of experience. The company now processes cryptocurrency payments for merchants, who can access customers from 100+ countries from around the globe. 

Merchants signing on the platform get access to instant service at a fee of 1.2%. Ikajo is currently running an affiliate program where merchants can get extra revenue of 50% upon getting other qualified businesses to sign up on the platform. 

ix) AlfaCoins

AlfaCoins supports Bitcoin, Litecoin, Ethereum, Bitcoin Cash, DASH, and XRP cryptocurrencies. The platform features CoinSplit, a function that allows users to split payments between crypto and fiat. Through this feature, AlfaCoins users can take a portion of their earnings as Fiat and hold the rest in a cryptocurrency wallet for HODLing. 

The company accepts payments from all countries, with the only exceptions being Iran and North Korea. Merchants are charged a flat fee of 0.99%, one of the lowest in the crypto payments industry.

So there you have it. With these crypto payment gateway options, you can get started on accepting cryptocurrency payment for your business. This option grants you the ability to secure your funds in a cryptographically-secured environment, free of chargebacks and border restrictions. 

Categories
Crypto Daily Topic

How Decentralised Finance is Redefining the Banking Industry

In the last few years, the concept of decentralization has gained a lot of attention across all industries. This has been fuelled by the entry of blockchain technology, which has supported the growth of numerous cryptocurrencies. 

In the last few years, the concept of decentralization has gained a lot of attention across all industries. This has been fuelled by the entry of blockchain technology, which has supported the growth of numerous cryptocurrencies. 

In the last few years, the concept of decentralization has gained a lot of attention across all industries. This has been fuelled by the entry of blockchain technology, which has supported the growth of numerous cryptocurrencies. 

Decentralized finance, in particular, has become a widespread concept driven by the public’s disillusionment with the centralized financial system. This is especially true given the alarming rate of cyber-attacks, which often leave individuals at risk of financial loss and personal data exploitation. 

Besides privacy concerns, decentralized finance has the potential to extend access to financial services to the 1.7 unbanked population. It faces fewer barriers than traditional banking services, prompting start-ups to take up open source finance to bridge the existing market gap. 

What makes Decentralised Finance a Better Choice

Decentralised Finance (DeFi), is an ecosystem of financial solutions built on top of a blockchain network. At their core, these solutions bring in the permissionless and transparent nature of blockchain into the financial industry. This means that users are given absolute control of their assets and can interact with other users through peer-to-peer transactions, thereby eliminating the need for a central authority. As a result, financial services become more affordable and frictionless compared to traditional banking services. 

Additionally, unlike centralized financial services, DeFi doesn’t require complex infrastructure to reach the general public. In fact, as the internet penetration rate increases, so does DeFi become accessible to everyone since it’s internet-based. 

Decentralized Finance Use Cases

There already exist several solutions that provide open-source financial services. These solutions fall in 4 major categories: 

i) Borrowing and Lending

Open source borrowing and lending services are the most popular application in the decentralized finance ecosystem. Thanks to the lack of a central authority, these solutions make borrowing and lending affordable, faster, and more accessible. In some cases, your credit score may be overlooked, especially when you agree to collateralize your digital holdings. 

ii) Monetary Banking Services

Decentralized finance is fintech applications offering monetary banking services. This means that the applications can serve as issuance platforms. Currently, most DeFi applications focus on the issuance of stablecoins, insurance mortgages, and securities. 

By offering stablecoins, DeFi applications contribute to the maturation of the blockchain industry since the stablecoins are less volatile. This makes it possible for the coins to be used by merchants and investors as a store of value. 

DeFi’s entry into the mortgage and insurance market has helped eliminate the role of intermediaries. This has reduced the underwriting and legal fees in the case of mortgages. At the same time, it has helped lower the cost of premiums in the insurance market by spreading risk among the parties involved. Also, DeFi applications make it easy for companies and businesses to launch and issue tokenized securities to investors. Other platforms allow the creation of blockchain-based derivatives and synthetic assets, contributing to the growth of the financial industry as a whole.

iii) Decentralized Marketplaces

Decentralized marketplaces are relatively new in the industry, as evident from their limited share of the market. However, as more people come to appreciate anonymity and privacy, decentralized marketplaces will rise in popularity. 

These marketplaces are peer-to-peer platforms that allow users to trade assets without the need for a trusted intermediary to hold their funds. All trading transactions are automatically executed by smart contracts. As such, they have lower trading fees and require less maintenance compared to their counterparts. 

iv) Payment Processing

Sending payments, especially across borders, has long been a major pain point for business and those working overseas. The biggest problem facing these transactions is the expensive amount of fees charged by banks and traditional payment processors for sending remittances. 

With the likes of the Stellar blockchain leading the way, DeFi is committed to making cross-border payments more affordable. In turn, businesses will extend their market outreach now that they can accept payment from customers across the world. 

Why Hasn’t Decentralised Finance Skyrocketed?

Given the numerous advantages of DeFis, one would expect it to have gained massive usage. Unfortunately, this hasn’t been the case – based on the 25 million cryptos users against the 1.7 billion unbanked population. This is due to the following challenges:  

  • Scalability 

Scalability has been the biggest problem facing the entire blockchain industry, and decentralized finance applications are no exception. Currently, DeFi applications can’t process as many transactions as traditional financial services can. For instance, Visa can process about 24,000 transactions per second, which is way more than 15 transactions processed by Ethereum DeFis in one second. If decentralized finance applications and the blockchain industry, in general, is to appeal to the world, then developers must work on improving the bandwidth to handle more transactions. 

  • Technical Risks

In their simplest form, DeFi applications and the blockchain network are pieces of software. As such, they are prone to bugs and hacks undermining their growth. A good example is the Ethereum blockchain, whose ERC-20 standard is plagued by constant bugs that render applications built on it inefficient. Also, there have been several DeFi applications that have been hacked, creating uncertainty among crypto enthusiasts. 

  • Manipulation

Since DeFi applications are currently unregulated, the market remains vulnerable to manipulation. In the traditional banking industry, manipulation is almost impossible thanks to the strict monitoring and regulations put in place by authorities. 

The most common practice is the manipulation of price feeds, also known as oracle manipulation. Oracles, in this case, refers to third-parties that supply blockchain with a particular type of data. For example, the Ethereum blockchain doesn’t determine the price of ETH. The price is determined by oracles, such as exchanges. 

Oracle manipulation occurs when a DeFi app uses only one or a limited number of exchanges as the only source of data. This means that traders can trade large amounts of cryptos to sway the price movements, thereby manipulating the information provided by the oracle ( exchange).

Conclusion

There’s no doubt that decentralized finance is set to become the future of the financial industry. But for it to mature and appeal to all stakeholders, decentralized finance needs to mitigate the hurdles hindering its growth. Moreover, DeFi applications are working independently of each other, which fragments the market. Perhaps if they were to work harmoniously, some of the problems facing the industry would be solved. 

Categories
Cryptocurrencies

What is Grin?

One of cryptocurrency’s biggest selling points is their privacy – the ability to engage in transactions without them being linked to your real-life identity. While this would appear to be the picture on the surface, the reality is that it’s still possible for your transacting history to be traced to your real-life identity and open you up to fraud, interference by the state, and other consequences.

One of cryptocurrency’s biggest selling points is their privacy – the ability to engage in transactions without them being linked to your real-life identity. While this would appear to be the picture on the surface, the reality is that it’s still possible for your transacting history to be traced to your real-life identity and open you up to fraud, interference by the state, and other consequences.

One of cryptocurrency’s biggest selling points is their privacy – the ability to engage in transactions without them being linked to your real-life identity. While this would appear to be the picture on the surface, the reality is that it’s still possible for your transacting history to be traced to your real-life identity and open you up to fraud, interference by the state, and other consequences.

This state is known as ‘pseudonymity,’ and it refers to your ability to transact without the need to use your real-life credentials, but with your transaction trail having the ability to be used to link back to you. 

A bunch of coins called ‘privacy’ coins has been launched in response to this problem. Some of these, like Monero, use features such as ring confidential transactions (RingCTs), which result in high transaction fees and lower transaction throughput. Other features like ZCash’s zk-SNARKs and crypto mixers like CoinJoin involve trusting a third-party, which in itself is against all cryptocurrency stands for. 

Grin is a cryptocurrency that promises to solve all these problems: no half-half anonymity, third-parties, and high transaction fees. 

What is Grin? 

Grin is an implementation of the MimbleWimble blockchain protocol. Launched in January 2019, it is written in the Rust programming language. Grin deviates from the standard cryptocurrency model by having no public ledger. The cryptocurrency utilizes Coinjoin’s anonymization strategy to achieve scalability and privacy.

Grin was born out of the MimbleWimble project, which, in turn, was meant to be a sidechain for Bitcoin. However, it couldn’t mesh well with Bitcoin’s scripting system. This prompted the developers to create an independent cryptocurrency: Grin. 

Grin’s developers believe in staying true to cypherpunk principles – the idea that privacy should be a right and cryptography should be liberally used to achieve it; without governments’ and states’ regulation.

Grin also took an entirely different approach to funding. The project was funded by the community: without an ICO, airdrop, or any of the other traditional approaches. There was “No funny business,” as said by Igno Peverell, a pseudonymous developer of the project.  

What is MimbleWimble? 

MimbleWimble traces its origin to August 2016 when a user with the name ‘majorplayer’ posted a file on the IRC channel #bitcoin-wizards. The file described MimbleWimble as a private and scalable alternative for Bitcoin’s blockchain. This piqued the interest of some blockchain veterans, including Blockstream’s Andrew Poelstra, who then got to working on a more developed concept of the idea and a more organized whitepaper. 

The MimbleWimble protocol seeks to solve two problem areas for blockchain: privacy and scalability. 

Privacy 

MimbleWimble achieves the complete privacy of transactions with the use of Elliptic Curve Cryptography (ECC). ECC is a public key encryption method that will facilitate faster and stronger performance for cryptographic keys. Based on the elliptic curve theory, ECC-enabled public keys are also remarkably shorter. 

Scalability

MimbleWimble achieves scalability by removing old and unnecessary transactions from the blockchain so as to improve efficiency. Spent inputs are aggregated together over time and removed through a protocol known as ‘cut-through.’ As Grin explains on GitHub: 

“similarly to a transaction, all that needs to be checked in a block that ownership has been proven (which comes from transaction kernels) and that the whole block did not add any money supply (other than what’s allowed by Coinbase). There are four matching inputs and outputs can be eliminated, as the contribution to the overall sum cancels out… Note that all transaction structure has been eliminated and the order of inputs and outputs does not matter anymore. However, the sum of all outputs in this block, minus the inputs, it’s still guaranteed to be zero.” 

This ‘pruning’ of old transactions creates more space for newer transactions and prevents the network from clogging, allowing it to be more scalable. 

Grin’s Cuckoo Cycle

Grin employs a new type of proof-of-work algorithm which it calls “Cuckoo Cycle.” The protocol relies on memory, rather than on computing power to mine new coins. This means most types of computing machines can be used to mine Grin, as opposed to many other cryptocurrencies that rely on application-specific integrated circuits (ASICs). 

The idea is to avoid ASICs centralizing the currency and to allow more users to participate in the mining process. Currently, Grin hard forks every six months to modify the mining algorithm so as to keep off ASICs. Grin’s algorithm is designed in such a fashion as to produce new blocks every 10 seconds. 

Grin’s Monetary Policy

Unlike the vast majority of cryptocurrencies, which are mostly used for speculative investment, Grin aims to be a currency that can be used daily as a medium for exchange. For this reason, its developers have designed it in such a way that its value is more stable. 

For one, it has an unlimited supply with a model that encourages users to spend, but not to HODL. It has a static emission of one coin each second; with an inflation that starts high and decreases over time to approach zero, without ever touching it (zero).

Current Status of Grin 

Despite Grin having some of the most forward-thinking approaches in the industry, it’s yet to achieve a solid footing in the industry.

However, as more crypto users gravitate towards more privacy, the coin is likely to see an uptick in usage. Moreover, its use of MimbleWimble, which is arguably popular in the blockchain space, grants it major credibility and, hopefully, potential. 

Grin’s protocol is also designed to support Schnorr signatures, which are shorter and help to create more space in the blockchain. In so doing, they help deal with both the issue of transaction backlog and high transactions’ fees. 

Tokenomics of Grin

As of April 29, 2020, Grin was trading at 0.551442 while ranking at #139. It has a market cap of $22, 302, 118, with a 24-hour volume of $49, 564, 7621. Grin has a circulating supply of 40, 443, 300, and a total supply of the same value. Grin’s all-time high was $10.00 (Jan 28, 2019), while its all-time low was 0. 305828 on (Mar 13, 2020).

Criticism of Grin 

Despite Grin implementing some of the most cutting-edge technology in crypto, it still has its own shortcomings. For instance, for transactions to take place, both parties must both be online. This is not always possible or convenient for participating parties.

There’s also the issue of usability. Although the options have recently expanded somewhat, previously, there was only a command-line wallet for Linux, Windows, and OSX, locking out non-tech-savvy users. 

Finally, MimbleWimble doesn’t have a scripting language. Some people consider this constraining since it means the blockchain is not programmable. But programmability is not a priority for Grin, as Poelstra would explain: “the design philosophy of Grin is to be as simple as possible.” 

Where to Buy Grin

You can buy Grin from any of several platforms, including Coinbase, Kucoin, Hotbit, Bittrex, Poloniex, HitBTC, and several others.

Before you purchase/exchange crypto for Grin, you need to first have a wallet. Some of the available options include Grin Purse, Grin Vault, Ironbelly, Supergrin, Diagon Alley, and Smirk.

Competition

Grin is a privacy coin, but so are other cryptocurrencies (more established ones, to boot) like Zcash, Monero, Komodo, Dash, and so on. However, Grin is still relatively young, and with its unique technology and approach, it holds compelling potential. With the MimbleWimble protocol, it’s directly in competition with only one and lesser-known crypto called Beam. 

Final Thoughts

Grin provides anonymity to users without preconditions. Its cut-through feature to eliminate transactions’ backlog enhances the crypto’s scalability and its ability to be used as a transactional currency. It’s one inherently honest currency – from development to actual use. Grin’s current market rank may be disheartening for fans, but this is likely to change as the crypto community starts edging towards utter anonymity coins. The cryptocurrency is one to keep an eye on. 

 

Categories
Crypto Daily Topic

How to Create an Effective ICO Marketing Campaign

ICOs have revolutionized the way startups raise funds for their projects. Generally, it involves the selling of a company’s token in exchange for fiat currency or even popular cryptocurrencies such as Bitcoin and ETH. 

ICOs have revolutionized the way startups raise funds for their projects. Generally, it involves the selling of a company’s token in exchange for fiat currency or even popular cryptocurrencies such as Bitcoin and ETH. 

ICOs have revolutionized the way startups raise funds for their projects. Generally, it involves the selling of a company’s token in exchange for fiat currency or even popular cryptocurrencies such as Bitcoin and ETH. 

While the funds raised through ICO campaigns have declined in the last few years, it doesn’t mean that it’s impossible for your project to achieve its financial goal. To a larger extent, the success of your ICO project depends on the effectiveness of your marketing campaign. 

Interestingly, the same marketing tools used in conventional advertising campaigns are also used in promoting an ICO project. The difference is in the way you use the tools. As such, an effective ICO campaign is one that seeks to inform investors of the benefits of the project and its contribution to the blockchain network. Here is how to do an effective ICO campaign.

1. Research on Your Market

It is anticipated that blockchain will find its way into all major industries improving their operations as a result. But, this blockchain takeover is still in its infancy, and as of now, not every company can embrace ICO. 

So, before planning for an ICO marketing campaign, you need to ascertain whether integrating digital tokens into your business model brings any value. You may consider trying the IPO route if digital tokens aren’t suited for your startup. 

If indeed ICO adds value to your product or service offering, you also have to do more market research to find out if what you intend to offer is on demand. Usually, demand arises from the scarcity of a product in the market. Ideally, your offering should be unique to bridge the market gap and eventually create demand. 

2. Define Your Audience

A streamlined marketing approach works better than a general approach. It may seem counter-intuitive since marketing is all about getting your product out there to as many people as possible. But a wide approach means that you may end up marketing to people who are not interested in your offering in the first place. 

On the other hand, narrowing down your marketing campaign to the right audience will certainly win you more investors. 

You could start by identifying the personas of your ideal investors. Gather relevant information about then including their pain points and how your offering stands as a solution. To achieve this, you need to leverage existing cryptocurrency communities spread across various social media platforms. Most importantly, try and connect to those who are in the same industry as your offering.  

3. Tailor your PR and Media Outreach

In the course of your interaction with the crypto-community, you’re likely to meet two distinctive audiences. The first are those with an extensive understanding of the digital currency while the second group are those who aren’t crypto savvy but understand the potential of blockchain technology. 

It is your responsibility to build a comprehensive media and public relations outreach that address both groups of potential investors. As such, the content you publish on your website and social media platforms should offer deeper analysis and insight to cater to the audience who are well versed in the digital token market. At the same time, make sure you include basic information and guides for those with a limited understanding of the market. 

4. Create a Winning Whitepaper

Your project’s whitepaper is one of the surest ways to connect to your audience. It’s a marketing tool by itself that attempts to convince investors why they should stake their funds in your company. The idea here is not to oversell your project idea but rather to win the investors’ trust. 

Essentially, a good whitepaper should consist of the project’s outline with emphasis on its place in the current market. This will help investors examine if your solution stands out from the rest of the competitors in the market. Serious investors will stake in unique projects that demonstrate the resilience to survive in the market. 

You should also state the exact amount of money you intend to raise and how the funds will help achieve certain milestones of the project. This can be captured perfectly by designing a roadmap detailing the timeline of the project development. 

A whitepaper wouldn’t be complete without the project’s team section. Despite the fact that the section appears at the tail-end of the whitepaper document, it adds credibility and legitimacy to your project. So, it’s a good idea to have reputable professionals in your team to back up your project. Ideally, the team members should have had some success in the blockchain domain to demonstrate their authority on the subject. 

5. Partnerships and Active Involvement in Blockchain Events

Forging partnerships with other startups is a marketing tool that is often overlooked by most ICO projects. This is mainly due to the fear that one party may overshadow the success of the other party. However, if done right, partnerships can actually win you more clients in addition to contributing to the growth of your project. As such, it’s recommended to partner with a company that complements what you offer. For instance, if you are a fintech crypto startup, you can partner with a blockchain payment processor company. 

Also, active involvement in blockchain forums is a good way to get your ICO project known to the rest of the community. In these forums, you’ll not only interact with other potential partners but also investors and other interested parties. 

6. Create a Bounty Program

A bounty program is a marketing strategy that uses incentive-based rewards to attract investors to your ICO. A good example of this program is airdropping. It entails rewarding some members of the crypto community with free tokens for helping spread the word about the ICO project. The free coins can be exchanged for other digital currencies or retained as an investment in the project. This is an affordable marketing strategy, especially if you can offer just the right amount of tokens to make the campaign effective. 

Conclusion

Promoting an ICO can be overwhelming, given the sheer amount of work that goes into creating an effective marketing campaign. But with the guidance of the simple tips above, it can be easier since you’ll have an idea of what to pay attention to when designing your campaign. 

Categories
Cryptocurrencies

Cryptocurrency and Taxes

Days are gone when cryptocurrency was seen as a fringe currency only suitable for criminal activity. The asset class is now more legitimate in the eyes of the public (and some governments) more than ever. Some employers now pay employees with cryptocurrency, plenty of merchants now use cryptocurrency for transactions, and millions hold the e-currency as a digital store of value.

Days are gone when cryptocurrency was seen as a fringe currency only suitable for criminal activity. The asset class is now more legitimate in the eyes of the public (and some governments) more than ever. Some employers now pay employees with cryptocurrency, plenty of merchants now use cryptocurrency for transactions, and millions hold the e-currency as a digital store of value.

Days are gone when cryptocurrency was seen as a fringe currency only suitable for criminal activity. The asset class is now more legitimate in the eyes of the public (and some governments) more than ever. Some employers now pay employees with cryptocurrency, plenty of merchants now use cryptocurrency for transactions, and millions hold the e-currency as a digital store of value.

As the asset class has risen in popularity, the internal revenue service (IRS) has also started to pay closer attention and has recently taken to clarify how cryptocurrency should be taxed. This is so far as to send warning letters to thousands of crypto holders and investors who it deems to not have complied with crypto tax regulations.

Many crypto traders and investors are still in the woods when it comes to how to properly handle their crypto tax. This article clears some of the confusion surrounding the issue, as well as outlining instances in which you need to declare your crypto tax returns.

Cryptocurrency and Taxes: The Fundamentals

The IRS views and treats cryptocurrency as property – not as currency. The purpose of this is to make crypto taxable, just like other types of property, and it applies to all cryptocurrencies; Bitcoin, Ethereum, Bitcoin Cash, Litecoin, XRP, and so on.

This means that cryptocurrency must be treated by its owners just as they would any other form of property such as stocks, bonds, commodities, real estate, etc. As such, just as you would report capital gains and losses from stock trading, so should you report crypto trades. Failure to file your crypto returns is considered fraud by the IRS.

Bitcoins Held As Capital Assets Are Taxed As Property 

The IRS treats cryptocurrency as property, which means tax principles for property apply. Thus, any profit gained or losses accrued should be taxed as either capital gains or losses. It’s’s just like selling your home or moving stocks. 

Calculating Your Capital Assets

You take your cost basis – the amount you paid for the currency – and calculate how much it’s’s gone down since that date. Capital gains rates for a tax year can be 0, 15, or 20%. 

However, if you’re selling property as part of a trade, it will not be considered as a capital asset and is taxed as ordinary income. This applies to cryptocurrency too. The IRS will look at the ‘character’ of the gain or loss, or, the intent behind your selling. 

Cryptocurrency and Employment

Cryptocurrency used to pay for goods and services is also taxable. Employers paying wages in Bitcoin or any other cryptocurrency should also declare those earnings on W-2 forms. The cryptocurrency value should be converted to the equivalent value in US dollars on the date the payments are made, and careful records made. Also, wages paid in crypto are subject to withholding tax, just like for dollar wages. 

For their part, employees must report their wages earned in crypto as dollars. Also, if you’re self-employed, you must declare any gains accrued from crypto sales transactions. You must convert the crypto to dollars on the day they’re received, and record the figures as tax returns. 

Cryptocurrency Mining and Taxes

Crypto miners, people who utilize computer resources to validate transactions and record them on the blockchain, must also report receipt of the currency as income.

The IRS says when a taxpayer successfully “mines” cryptocurrency and receives earnings from that activity, they must include it in their gross income after determining a fair market value of the cryptocurrency on the day they received it. If a Bitcoin miner is self-employed, his gross earnings minus allowable tax deductions are subject to self-employment tax.

Taxable Events for Crypto

A taxable event is an activity that triggers a tax reporting liability. Such an event triggers a capital gain or loss that must be reported. 

The IRS specifies the following crypto-related events as taxable events: 

  • Trading cryptocurrency to Fiat currency 
  • Trading cryptocurrency to cryptocurrency (you have to calculate the value of the trade at the time of the trade)
  • Paying for goods and services with cryptocurrency (calculate the fair market value for the trade at the time of the trade)
  • Earning wages/ income/ salary in cryptocurrency (including from mining) 

What is Not a Taxable Event?

Gifting someone with cryptocurrency

  • Transferring cryptocurrency
  • Buying cryptocurrency with USD (since you don’t realize gains from that)

What if You Lose Money Trading Cryptocurrency? 

If you lost money while trading crypto, you can actually save money by filing those losses and save money on taxes. You can even strategically save money by selling crypto assets in which you have incurred losses, in a strategy known as Tax Loss Harvesting. 

Short-Term and Long-Term Capital Gains

If you’ve held cryptocurrency for less than a year before selling or exchanging, you should pay short-term capital gains tax. This kind of tax is equal to the ordinary income tax rate. However, if you’ve held cryptocurrency for a period longer than a year without selling or exchanging, you’re liable to pay long-term capital gains tax. 

As such, individuals can pay taxes at a lower rate than the ordinary income tax rate if they have held the cryptocurrency for more than a year. But this will limit the tax deductions that they can claim on long-term capital losses. 

What Happens If You Don’t Pay Your Crypto Taxes?

It’s easy to think that given the anonymity or pseudonymity of cryptocurrencies and the decentralized and peer-to-peer nature of crypto transactions that the government has no way of knowing that you’re trading, selling or buying cryptocurrencies. That might have been true for a while, but the IRS already caught up.

Indeed, the IRS won a court battle against crypto exchange Coinbase, which required the exchange to turn over data (taxpayer ID, dates of birth, addresses, transaction records, and so on) of over 13000 customers.

There is also the fact that the blockchain is publicly available, meaning anyone can view transaction histories at any time. It only takes linking an address to a real identity and determining who the owner of a transaction is.

Choosing not to file your crypto transaction returns is a risky decision that can get you on the wrong side of the law and expose you to criminal prosecution. 

Categories
Crypto Daily Topic

How Blockchain is Being Deployed to Support Anti-Coronavirus Efforts All over the World

Blockchain is being used in the fight against Covid-19, the novel disease that emanated from China’s Wuhan in December last year and has spread to almost every territory in the world. As at the time of writing, 98, 387 people have died from the disease, and a 1, 633, 083 others have been infected. 

Blockchain is being used in the fight against Covid-19, the novel disease that emanated from China’s Wuhan in December last year and has spread to almost every territory in the world. As at the time of writing, 98, 387 people have died from the disease, and a 1, 633, 083 others have been infected. 

Blockchain is being used in the fight against Covid-19, the novel disease that emanated from China’s Wuhan in December last year and has spread to almost every territory in the world. As at the time of writing, 98, 387 people have died from the disease, and a 1, 633, 083 others have been infected. 

Governments and other organizations are scrambling to fight off the disease, and blockchain is aiding these efforts. Universities, the medical, and the private sectors are harnessing the power of blockchain to fight the virus. 

Let’s take a look at some of the ways: 

Blockchain for Monitoring Coronavirus Data 

Hashlog is a blockchain-based data visualization tool by blockchain applications developer, Acoer. Via Hashlog, people can understand and follow the global spread and impact of the virus easily. It combines information and data from a large set of publicly available data, including the World Health Organization’s. 

Hashlog maintains an updated catalog of the total number of infections worldwide, deaths from the disease, cases per country, as well as trends on Google based on interest and region. Thanks to the immutable nature of blockchain, data shared cannot be manipulated or altered in any way. The tool is automated such that data is updated automatically, and researchers and scientists can have a dynamic dashboard to guide them in their work.

Blockchain for Contract Tracing 

Pennsylvania’s Villanova University Department of Electrical And Computer Engineering is developing a platform to fight against the Coronavirus by utilizing a trio of blockchain, artificial intelligence (AI), and internet of things (IoT) technologies to assist healthcare facilities track coronavirus cases globally. 

The system relies on a private blockchain accessible by healthcare facilities all over the world to publish Covid-19’s test results among doctors on a transparent, secure, and immutable ledger. IoT and AI are used to conduct surveillance on public spaces where people would originally gather, but which would be high-risk for now. Any such gathering triggers alerts over the blockchain. 

These alerts will assist health care providers in making more informed and strategic decisions on how to allocate medical resources that are already in short supply. 

Hasshi Sudler, an adjunct professor at the university’s department, told Coindesk: “Medical institutions, whether they know each other or not, whether they trust each other or not, can exchange information about who they know that is infected and to maintain contact with who is infected, over the blockchain.”

Blockchain for Social Distancing

Spherity is a Berlin-based startup that has developed a decentralized identity system that helps Covid-19 patients get medication while maintaining social distance. Through the Spherity prototype, patients can share their digital fingerprints and know-your-customer (KYC) credentials with doctors in a user-friendly cloud-based and blockchain ecosystem. 

Once their patient’s KYC’s credentials are matched with their health records, they can be issued with an electronic prescription with which they can access medication. 

In another case of blockchain assisting the enforcing of social distancing, the Honduran government has deployed a blockchain based app to track and manage social distancing and lockdown orders. The country’s emergency response unit, together with the Inter-American Development Bank, tech startup Emerge, tech company Penta Network have come together to launch a program called Civitas, which will help in managing telemedicine as well as the permission for people to leave their houses for specific errands. 

If someone feels sick, they will engage with healthcare professionals from the National University of Honduras to determine if the symptoms are for Covid-19. Then, people with symptoms suspected to be related to the virus are directed to healthcare facilities that exclusively deals with it, reducing exposure to vulnerable populations in the region’s other hospitals.

Blockchain for Covid-19 research

About 6000 Ethereum miners are contributing to Stanford University’s Folding@home distributed computing Project. This project pools together GPU power from across the world to search for a cure for Covid-19. 

These miners Belong to CoreWeave, the largest US Ethereum mining pool. And now, they are redirecting the processing power of more than 6000 specialized computers towards the project.

Folding@home is a long-standing Research project Dedicated to finding cures for diseases from Alzheimer’s to Ebola and recently, Coronavirus. It aims to do this by connecting thousands of computers from the globe to form one big distributed supercomputer for the research of a cure for the disease. CoreWeave’s GPU machines, which are designed to perform repetitive calculations, double the power of the distributed network. 

Categories
Cryptocurrencies

How to Prevent, Detect and Recover from Cryptojacking 

As cryptocurrencies grow in popularity and value, they continue to face cyber threats due to their internet-based nature. The most common threats are security breaches targeted at individuals and firms holding significant amounts of digital currencies. 

As cryptocurrencies grow in popularity and value, they continue to face cyber threats due to their internet-based nature. The most common threats are security breaches targeted at individuals and firms holding significant amounts of digital currencies. 

As cryptocurrencies grow in popularity and value, they continue to face cyber threats due to their internet-based nature. The most common threats are security breaches targeted at individuals and firms holding significant amounts of digital currencies. 

Over the years, as crypto mining has become expensive but still lucrative, cryptojacking has become the latest threat facing virtual currency users. 

What is Cryptojacking? 

Generally, cryptojacking is the unauthorized use of a computer, tablet, smartphone by a cybercriminal to mine cryptocurrencies. The process is pretty straightforward as all the hacker has to do is send you a malicious link or infect a website with malware. Once you open the link or the website, the malware auto-executes in your device and starts mining cryptos in the background.

The attack might also be targeted at a business’s cloud platform. By hacking into this platform, the cybercriminals tap into the computer resources resulting in increased cloud usage cost at the expense of the business or institution.  

You might think that cryptojacking was rampant only in 2017 when the market was booming. On the contrary, recent data suggests that the practice has been on an upward trend even in the bearish market. The reason for this is that as the crypto-market turns bearish, mining doesn’t generate enough profits to cover the resources used. This has led cybercriminals to resort to siphoning computational power from unsuspecting victims as a cheaper and less risky alternative to earning returns. 

Most of the cryptojacking is done using JavaScript miner, which is also used for legitimate mining. This means that a perpetrator doesn’t require high technical skills since the miner can easily be bought as a complete kit. What’s worse, it’s impossible to trace a miner to a particular hacker since the mining code doesn’t encrypt their data. This is especially true for anonymous cryptos such as Monero and Zcash, which makes it harder to trace cryptojacking activities. 

How to Detect and Recover Cryptojacking 

It may be hard to trace a cryptojacking hacker, but that doesn’t mean it is impossible to know if your device is compromised. All it takes is just paying attention to your device’s performance. So, here’s how to find out if your device has been infected with crypto mining scripts. 

i) Overheating 

Cryptojacking codes tend to use a lot of electric power, causing your device to overheat. If left unresolved, overheating can damage other hardware, such as the storage drive leading to expensive repairs. Keep in mind that overheating doesn’t necessarily mean your device has been compromised. It can also be caused by unrelated issues such as a damaged fan or dust clog-up. So, ensure your device is always in good condition to make it easy to detect overheating caused by cryptojacking. 

ii) Notice Lag in Performance

Cryptomining code slows down your device’s performance, as it overworks the Central Processing Unit (CPU). You’ll easily notice the lag when performing basic functions such as opening files or typing in details. 

Alternatively, you can look at your CPU’s level of usage from the Task Manager tab on your PC or Activity Monitor on a Mac computer. If the CPU usage is higher than usual, then there’s a good chance that the cryptomining script is running in the background. 

iii) Scan for Malware 

Making use of your device’s security software is one of the best ways of detecting cryptojacking scripts. Although not all scripts can be detected, scanning for these malicious scripts regularly can save you the damage. You should also ensure your security software is always up to date for effectiveness. 

Additionally, if you own a website, it is advised that you scan for any changes in your code. This is where cybercriminals embed cryptojacking codes, so monitoring your site can help you detect threats early enough.

iv) Keep Tabs on Cryptojacking Trends

Cybercriminals are always improving and devising new ways of siphoning your device’s computational power. Staying on top of the latest trends will help you keep with the script’s improvements as you also learn how to detect them. You can get the latest news on cryptojacking from reliable sources such as CoinDesk, CryptoSlate, and other top cryptocurrency blogs. 

Having known how to detect cryptojacking, it’s pretty easy to recover from it. If you are dealing with a JavaScript attack, your first response should be to kill all running tabs. In the same vein, you should uninstall any suspicious browser extensions. Also, blacklist the website from which the attack originated from. It’s also advised that you deploy anti-malware to avoid further attacks. 

With this in mind, let’s look into how you can prevent cryptojacking in the first place. 

Ways of Preventing Cryptojacking

Here are some preventative measures you should take to safeguard your device from cryptojacking:

  • Security Training 

Security training involves building awareness of what cryptojacking attacks look like. This method works perfectly in a business or institutional setting where there are many employees, some of whom aren’t aware of cryptojacking. 

Essentially, the training should be aimed at educating employees on cybersecurity tips such as not clicking on phishing emails or suspicious sites, and downloading files from trusted sources only. 

You may also consider training your IT team on how to identify various attack methods and necessary actions to take to mitigate the threats. 

  • Disable JavaScript

Disabling JavaScript when browsing online, can prevent cryptojacking scripts from running on your computing devices. You can disable it on a single page of a site or even within the entire website. Keeping in mind that JavaScript is widely used by most sites, you should expect some web features to fail to work. 

  • Use Anti-Cryptojacking Extensions

Most of the cryptojacking scripts are found in web browsers and online sites. As such, installing trusted anti-cryptojacking extensions such as minerBlock and No Coin is an effective way of preventing cryptojacking. Ad-blockers can also help detect and block malicious scripts. 

Conclusion

Cryptojacking is not only a threat to the digital currency community but also to everyone who has a computing device. Like any other cybersecurity threat, it is almost impossible to anticipate cryptojacking or even stop it from happening. The only sure way of dealing with these threats is through the early creation of awareness, detection, and prevention. 

Categories
Crypto Daily Topic Cryptocurrencies

Is Bitcoin Really Anonymous?

If you were to ask a few people what makes Bitcoin a special internet currency, you’d most certainly hear that “Bitcoin is anonymous.” That’s because that’s the song sung on social platforms and drummed in by the media constantly. 

If you were to ask a few people what makes Bitcoin a special internet currency, you’d most certainly hear that “Bitcoin is anonymous.” That’s because that’s the song sung on social platforms and drummed in by the media constantly. 

If you were to ask a few people what makes Bitcoin a special internet currency, you’d most certainly hear that “Bitcoin is anonymous.” That’s because that’s the song sung on social platforms and drummed in by the media constantly. 

What people forget is that Bitcoin is also completely transparent. Thus, it would be ironic for it to also be anonymous.

What Bitcoin is, rather, is pseudonymous. This means it’s anonymous, but only up to a degree. 

The Bitcoin website clarifies: “Bitcoin is designed to allow users to send and receive payments with an acceptable level of privacy as well as any other form of money. However, Bitcoin is not anonymous and cannot offer the same level of privacy as cash.”

So what exactly is this pseudonymity? What are the intricacies that make Bitcoin anonymous, yet not? And why should you care? 

Let’s answer each of those questions.

Why Stay Anonymous?

There is a lot of talk about Bitcoin’s anonymity or lack of. Why should it matter? 

First, you need to remember that Bitcoin’s reputation as “the internet’s gold” makes it an ultra-attractive target to fraudsters, hackers, and other such elements. Any weak link they can exploit to unscrupulously acquire Bitcoins, they will. Countless stories of such incidents abound.

There’s also the little matter of privacy. Some people may just want to conduct their transactions privately, for whatever reason. Remember, if your address is linked to your identity, it reveals the following information:

  • How many bitcoins you held/are holding in that address
  • When, and from whom you received them
  • The address to which you sent them

Obviously, this is sensitive information that you never want leaking. Staying anonymous can ensure you protect yourself and your finances.  

How Do Bitcoin Transactions Work?

To get a clearer grasp of Bitcoin’s anonymity, we need to first understand how Bitcoin transactions work. The Bitcoin protocol, at its very basic level, comprises a series of transactions in the form of blocks. The transactions are packages of data, which include transaction ‘inputs and outputs.’ 

Inputs are the Bitcoin addresses from where bitcoins are sent, while outputs are the addresses to which bitcoins are sent. Each Bitcoin transaction transfers coins from one or several inputs to one or several outputs. 

It’s also possible for a transaction to have one input and several outputs, but that rarely happens as it would mean the amount of funds to be sent (output) would be exactly the same as the amount received earlier (input). 

It’s more common to find transactions that consist of multiple smaller inputs that translate into one larger transaction. For instance, if an individual controls two different inputs of 3 bitcoins each, and needs to send 3.5 bitcoins to an online store, the Bitcoin protocol will merge the two inputs into one transaction.

Even then, a transaction with multiple inputs is more common, since Bitcoin uses ‘change’ addresses. Change addresses allow users to spend the extra Bitcoins in a transaction – from one or several inputs, back to them. Consider the example of taking a $10 bill out of your wallet to pay for a $5 ice cream. You would give $5 to the cashier, and they would give $5 back to you. The $5 belongs to you, but it’s not available to you between the time you hand the bill to the cashier and the time they give it back to you. 

What Makes Bitcoin “Anonymous”? 

Bitcoin is widely regarded anonymous due to these reasons: 

First, unlike traditional payment systems, a Bitcoin address is not tied to the transacting individual. A network user can create a new and random address anytime, as many times as they want, without submitting personally-identifying information to anyone. 

Second, even transactions are not tied to the participant(s) of those transactions. Due to this, anyone can transfer bitcoins from any address whose private keys they control to any other address without having to divulge any personal information. Not even the receiver will know the identity of the sender. 

Third, transaction data on the Bitcoin network is transmitted in a random fashion on the peer-to-peer network. While computers on the network connect to each other via identifiable IP addresses, it’s hard to trace exactly where data originated from, thanks to that randomness. No one can know if data originated from a particular node, or if that node merely forwarded it. 

How Are Bitcoin Transactions De-Anonymized? 

There are three ways through which Bitcoin’s anonymity can be undone. 

First, although Bitcoin transactions are transmitted randomly over the network, it’s not a completely foolproof system. If a person has enough time and the tools to connect multiple nodes, it’s possible to determine the origin of a particular transaction. 

Second, Bitcoin addresses can be linked to real identities if the addresses are used together with real identities in one way or another. Some of the ways this could happen are: 

  • Addresses depositing/withdrawing funds from a centralized wallet or crypto exchange
  • Donation addresses that can be found/seen in the public domain
  • Using an address to send bitcoins to someone using your real identity

Thirdly, and perhaps most obviously, all transactions on the Bitcoin network are completely transparent and open for anyone to see. This transparency is the one that enables a determined person to cluster multiple addresses together and trace them to a user. 

What is Clustering? 

When we speak of clustering, what do we mean? 

Clustering is an attempt at analyzing transactions on a network, say, Bitcoin’s. The simplest explanation is this: combining multiple inputs into a single transaction. The inputs in question may have originated from different addresses, but the fact that they could be combined into one transaction means they originated from the same user. 

Change addresses could also be identified and linked to the sender of a transaction. When receiving Bitcoin, the output may not be attributed to you, but it most likely will be attributed to the sender. There’s also a type of software that reveals the owner of a change address to anyone who cares to dig. Such software may be configured in such a manner that it reveals the change address as the last output of transactions. 

Taint analysis is another method used to cluster transactions. This involves calculating the percentage of bitcoins one address received from another address and whether different addresses are, in fact, controlled by one user. 

Another clustering method is amount analysis and timing analysis. Amount analysis tracks how many bitcoins were sent in a particular transaction. Timing analysis tracks when a Bitcoin transaction occurred. 

How to Achieve Privacy over Your Bitcoin Transactions

1. Run Your Own Full Node

Conducting a transaction on the Bitcoin network requires you to have a wallet that is connected to a Bitcoin node. Bitcoin nodes are multiple computers that validate transactions before they’re recorded on the Bitcoin blockchain. If you’re transacting on the Bitcoin transaction and not running a full node, you’re relying on someone else’s, and you don’t have full control over your transactions. 

Not running your full node also has other less obvious implications. For instance, let’s say you’re using a certain wallet. You’re relying on this wallet to transmit and receive funds. Of course, the wallet service will claim not to tie your identity to the serial number of the wallet, and that they don’t collect your information when you’re setting up the wallet. Still, your IP address will be tied to the device, and your privacy and anonymity are compromised. 

You can avoid all of these scenarios by running your own full node. Take control over your transactions by not letting anyone verify your transactions for you. 

2. Use a VPN

An effective VPN (virtual private network) hides your IP address and encrypts your traffic so no one can see where you’re logging in from or what websites you’re visiting. Also, the sites you’re visiting will not know your IP address and your location. 

Running a full node ensures you can hide your location and IP address via a VPN. This way, any interested party cannot tie you to the node. 

When you’re using VPNs, you need to know not all are reliable. For instance, free VPNs will not be of much use. Other VPNs cannot be trusted to protect your data. Before you use any VPN, always conduct your own research to establish its reliability and how it has handled customer data in the past.  

3. Use TOR

TOR is short for The Onion Router and is a powerful anonymity tool that can also hide your IP address. Once activated, TOR operates as a separate browser that disguises your IP address and identity by routing your connection through random nodes on the Tor network such that your traffic cannot be traced back to you. The result is that it will appear as though you were coming from an entirely different country or state. If Bitcoin transactions are routed through Tor, there’s no way for anyone to know where they’re originating from. 

4. Use the Amnesic Incognito Live System (TAILS) 

TAILS is a live system that enables user security and privacy. It features an interface that can mimic the appearance of Windows so that a casual observer will not notice anything unusual with what you’re doing. 

You can use the TAILS system to anonymously send or receive Bitcoin, including from a public computer, without leaving a trace of your activity or identity. 

5. Use the Lightning Network (LN)

As you already know, all transactions on the Bitcoin blockchain are public. If someone knows your address, they can trace transactions back to you. 

Enter the lightning network. The lightning network is an off-chain layer for Bitcoin. Instead of transactions taking place on the Bitcoin blockchain, they take place on the Lightning network, offloading traffic off the Bitcoin blockchain. Like the Bitcoin network, the Lightning network also has multiple nodes. But unlike Bitcoin’s, the Lightning network’s nodes do not keep track of every transaction. The only information stored by the Lightning network is the interaction with other nodes.

Transactions in LN occur via two-way payment channels that only add the final transaction to the blockchain. Since not all transactions are added on the blockchain, LN is a great way to increase the privacy of your transactions. 

Final word

Bitcoin is not anonymous. It provides a certain level of privacy, but it will not guarantee that your transactions will not be traced. With this knowledge, you can know how to stay safe while interacting with Bitcoin and how you can do so. 

Categories
Cryptocurrencies

The Top 5 Smart Contracts Platforms

In its simplest form, a smart contract is a program that verifies and enforces the execution of a contract in a blockchain network. The concept was first proposed by an American computer scientist who is also credited for inventing the first-ever digital currency – Bit Gold. However, the digital coin was never implemented partly due to the ‘double-spending’ problem. 

In its simplest form, a smart contract is a program that verifies and enforces the execution of a contract in a blockchain network. The concept was first proposed by an American computer scientist who is also credited for inventing the first-ever digital currency – Bit Gold. However, the digital coin was never implemented partly due to the ‘double-spending’ problem. 

In its simplest form, a smart contract is a program that verifies and enforces the execution of a contract in a blockchain network. The concept was first proposed by an American computer scientist who is also credited for inventing the first-ever digital currency – Bit Gold. However, the digital coin was never implemented partly due to the ‘double-spending’ problem. 

With the advent of blockchain technology, smart contracts were given the ability to be immutable. This made it impossible for any party to copy or alter transactional data, thereby eliminating the double-spending problem as well as the need for intermediaries. As such, anonymous parties can engage in transparent and irreversible transactions without an external enforcement mechanism.

As the industry continues to mature, there have been multiple smart contract platforms available in the market, each with its own distinguishing features and functionalities. Although it provides diverse options to choose from, it can be overwhelming for new developers to choose the right platform on which to build their decentralized applications or exchanges.  

What Makes a Good Smart Contract Platform? 

Before we can look into some of the best smart contracts in the market right now, it helps to understand the criteria for choosing the right platform. 

To most developers and investors, the value of the underlying token is taken to be the ultimate indicator of a good smart contract platform. But considering the volatility of a token’s value, the price may not be a good indicator after all. If you are interested in a platform that is set to have a long-term future, consider the following factors: 

  • Number of Developers

For a smart contract platform to thrive, it needs to have a good number of active developers in its ecosystem. The number of developers can be equated to the public’s interest. This also helps enhance collaboration in the platform, which is beneficial to new developers joining the community.

  • User Experience 

When choosing a smart contract platform for your dApp, you want one that will make it easy for users to interact with the application easily. Some platforms require users to not only create an account but also hold a specific number of the underlying token. For dApp users who are already familiar with blockchain technology, these requirements may not be a problem. But for the average user, such requirements are an entry barrier. The idea here is to choose a platform with fewer technical requirements in order to attract a wide range of users. 

Best performing smart contract platforms.

1. Ethereum

Ethereum is one of the most popular smart contract platforms that allow developers to build decentralized apps through its Ether or ERC-20 tokens. The platform is powered by the Ethereum Virtual Machine (EVM), which is a software that executes all smart contracts. The platform functionality is further enhanced by its proprietary smart contract coding language, Solidity. This makes it easy for developers to not only set up contracts but also build blockchain apps. 

What makes Ethereum even better is that it has clearly published rules on how to develop smart contracts on the platform. This has made it the most preferred smart contract platform by reputable developers and even by a sizable number of fortune 500 companies. 

On the downside, however, Ethereum is vulnerable to security threats and bugs in its code. The platform has been quick to respond to these issues by designing new token iterations. But perhaps the biggest concern is the platform’s growing number of users. While this number has contributed to its large market cap, developers worry that it may work against the platform by slowing down the processing speed of contracts. 

2. EOS

EOS is gradually winning the attention of the crypto community thanks to its near-zero transaction fees topped by the ability to process numerous transactions within a second. To achieve this, the platform works on an ownership model whereby you are entitled to resources proportional to your stake. This also means that your total computational power is equivalent to the number of tokens you hold. The higher the number of tokens, the higher the computational power, translating to fast transaction speed. 

Contracts on the EOS platform are coded in the C++ language, which helps improve scalability. The contracts are then implemented into the blockchain in the form of a pre-compiled coding language known as WebAssembly (WASM), which promotes faster execution of contracts. 

Given its architecture and functionality, EOS is suited for building industry scale dApps. If you were to build such applications on a platform such as Ethereum, running it would be overly expensive owing to the transaction fees charged on each function. 

3. NEM

NEM is both a peer-to-peer cryptocurrency and a smart contract platform. It uses Java programming language, which makes it popular among many users as it is the most widely used language. 

The platform mainly focuses on scalability and security, as evident from its recent updates. The platform can handle about 100 transactions in a second, which is much higher than Ethereum, which only processes a maximum of 15 transactions per second.  

The only drawback of using NEM is that it employs smart contracts off the blockchain making it less decentralized. However, the platform offers better security, easier updates, and fast execution speed as a consolation prize. 

4. NEO

NEO is a relatively new smart contract platform based in China. The platform uses a Proof-of-Stake consensus mechanism alongside the Byzantine Fault Tolerance algorithm – which uses less computing power, making the platform more affordable than Ethereum. 

In terms of user-friendliness, NEO scores highly owing to its ability to execute contracts written in any programming language. So, a developer isn’t limited to writing contracts in one specific language, as is the case with other platforms. 

5. Stellar

For simple, smart contracts such as ICOs, Stellar is the ideal platform to use. It may not be as straightforward as NEM, but it’s more user-friendly than Ethereum. 

The platform has stood the test of time having been one of the oldest platforms in the industry designed to facilitate low-cost remittance transactions across borders. Its future was further cemented when the platform partnered with IBM and KlickEx, which have also contributed to its improved infrastructure. 

Stellar smart contracts can be written in all major programming languages, including those that the community provides an API for. The contracts are interconnected and executed using various constraints such as batching, multi-signatures, sequence, and time bounds. 

Conclusion

The success of your decentralized app depends largely on the platform it’s built on. While the above smart contract platforms are among the best in the market, your ultimate choice of a platform depends on the app you intend to build. Some platforms prioritize security over speed, so make sure the platform you choose is aligned to your goals. 

Categories
Crypto Daily Topic Crypto Guides

What Are Pump and Dump Schemes in Cryptocurrency?

Introduction

Introduction

Introduction

Cryptocurrencies and the blockchain technology are relatively new to the financial markets. This makes them vulnerable to the traditional scams that used to take place on stock and some new ones. Since cryptocurrencies are not regulated by the exchange board, it makes them more prone to scam and schemes than regulated securities.

Out of the many scams around, the most common scam is the so-called pump-and-dump. It originated from the stock market, but the issue was rectified and made illegal on regulated exchanges. However, the cryptocurrency market is not immune to it.

The pump-and-dump schemes are such that they put every rise or fall in the market a question mark. So, a genuine investor would be unaware of the rise was being pumped or was shooting up for real.

The working of Pump-and-dump schemes

The actors behind the scene of pump-and-dump schemes are well-organized groups working over some private messenger. They are referred to as the inner core investors, who basically shoot up the volume of a coin by targeting a single exchange. To do so, they even take the help of whales as well. The coin under target must be of low volume so that the core can lock up as much liquidity at the price they intend. Moreover, they make sure that liquidity is relatively small.

By this, most part of the inner core investor is done. And that’s when the outer core investors kick in. These are the investors who have no clue of the planned pump-and-dump. Once the pump is implanted, all the actors in the scene, mostly the outer core investors, get buying. There are also unaware flocks who see a drastic rise and began to buy as a cause of FOMO. This drives the prices much higher and more swiftly.

Once the price anticipated by the inner core actors is reached, they step back into the business. In other terms, they initiate their dumping. Since they are the first ones to short sell, they get the best price available. Then there are the outer investors who were left scammed, sitting with huge positions looking to sell at higher prices. But the dumping brings it down. Hence, this leaves the investors harmed as well as the integrity of the coin been pumped and dumped.

The pump-and-dump has been annihilated from the stock market and other regulated exchanges. However, the haunting in cryptocurrencies or non-regulated exchanges is still in existence. With this into account, the U.S Commodity Futures Trading Commission warned people about these schemes in virtual currencies. Click the image to learn more.

Conclusion

Pump-and-dump are schemes that cannot be put to a stop in the cryptocurrency space due to its non-regulated nature. The only way to get away with it is to avoid trading cryptos with very low liquidity and low volume. Or you may research the coin on its rise and fall and predict if the move is real or just an illusion.

Categories
Cryptocurrencies

Blockchain Crypto Wallet Review: How Safe Is Blockchin Wallet?

On the Blockchain.com website, this wallet is described as the “Safest and Most Popular for Investing and Storing Cryptocurrencies.” Launched in 2011, Blockchain wallet has stood the test of time and gained a solid reputation as one of the safest crypto wallets available today. According to their website, over $200 billion has been transacted through 48 million+ Blockchain wallets since its establishment. 

On the Blockchain.com website, this wallet is described as the “Safest and Most Popular for Investing and Storing Cryptocurrencies.” Launched in 2011, Blockchain wallet has stood the test of time and gained a solid reputation as one of the safest crypto wallets available today. According to their website, over $200 billion has been transacted through 48 million+ Blockchain wallets since its establishment. 

On the Blockchain.com website, this wallet is described as the “Safest and Most Popular for Investing and Storing Cryptocurrencies.” Launched in 2011, Blockchain wallet has stood the test of time and gained a solid reputation as one of the safest crypto wallets available today. According to their website, over $200 billion has been transacted through 48 million+ Blockchain wallets since its establishment. 

A closer look into the wallet app, and you can narrow down to the three biggest factors that continue to draw in Blockchain wallet users. These include its dedication to the security of the wallet, its resourcefulness about different coins and blockchains, and its ease of use.

In this Blockchain wallet review, we dig deeper into its key operational and security features, its pros and cons as well as ease of use.

Key Features:

Multi-platform: The blockchain wallet is available in both mobile and desktop versions. These include Android and iOS mobile app versions, and also supports all the popular desktop operating systems.

Inbuilt exchange: Blockchain wallet has also partnered with some of the most popular crypto exchanges like Shapeshift, to provide an in-exchange. Here, you can swap, buy, and sell cryptos without having to transfer currencies in and out of the wallet.

Real-time access to crypto markets: The crypto wallet app has also been hailed for its inventiveness, especially when it comes to providing the most attractive crypto market experience. In addition to the in-app crypto exchange provided here, Blockchain wallet will also provide you with real-time access to the global cryptocurrency market.

Resource-based: Blockchain app will also expose you to a wide range of market resources. These include the historical data and statistical information about a particular coin or the Blockchain that helps you make informed buy/sell decisions.

Security features:

Double password: When installing the blockchain wallet, and virtually any other crypto wallet, you will be required to set a four-digit security pin. In addition to the main passcode, the Blockchain wallet allows you to create yet another password required for authorizing crypto transactions.

Biometrics and 2FA: The blockchain crypto wallet app will also support the more innovative biometric security features for smartphone devices. You can, therefore, chose to reinforce the security passcode with a fingerprint or Face ID security feature. Alternatively, use your phone number to activate the two-factor authorization.

Non-custodial: Blockchain wallet is non-custodial and will not keep any of your private keys within its servers. These will be under your control as they are stored in your device.

Hierarchical deterministic: The Blockchain wallet is also hierarchically deterministic, making it possible for you to shake off trackers, and guarantee a level of privacy when crypto trading by creating new wallet addresses for each transaction.

Open-sourced code: The Blockchain wallet code is also open-sourced. It has, over the years, been vetted and audited by different professionals, who have helped identify and seal possible wallet loopholes.

Built-in security center: Blockchain Wallet employs a three-tier security feature that the user can activate at a time.

Level 1: This is specially designed to help you maintain control of your wallet and quickly recover it, if lost, by verifying your email address, coming up with a password hint, and generating the 12 words recovery seed.

Level 2: Designed to keep others from gaining access to your account and involves verifying your mobile number and activating the two-step authorization protocol.

Level 3: Designed to keep away preys by blocking Tor IP Addresses and preventing Tor Network users – that has, for the longest time, been a favorite for hackers – from contacting/accessing your account.

Ease of use:

Blockchain wallet, despite being a feature-rich platform and having some of the stringent security features, maintains a rather simplistic user interface. It is easy to interact with and use, for both beginners and crypto veterans.

Registering a crypto account on Blockchain is also easy, and sending or receiving cash to the crypto wallet app quite straightforward.

The app is also multilingual, supporting over 25 international languages. More

Currencies and countries supported

Blockchain wallet was initially designed to serve as a bitcoin-only wallet and only recently started supporting Ethereum, Bitcoin Cash, and Stellar cryptocurrencies, and the US Digital stable coin.

Though created by a Luxembourg based Fintech Company, the Blockchain Wallet has torn international borders to establish a presence in over 150 countries across the world.

Blockchain crypto wallet cost and fees

Downloading and installing Blockchain crypto wallet apps is free. And so is storing your digital currencies here or interacting with some of its security and operational features.

Crypto transactions that involve transferring cryptocurrencies in and out of the wallet, as well as exchanging one digital coin for another within its in-app exchange, attract variable fees. These are hugely dependent on the transaction volume and the speed with which you would like the transaction confirmed. The faster the transaction confirmation speed, the higher the fees.

Customer support

Blockchain wallet maintains an elaborate FAQ section of its website, which addresses common queries about the app’s security and operational features, or the broad crypto markets.

The company also maintains a highly responsive and multilingual support team that you can access via email or on their different social media platforms.

Blockchain Wallet doesn’t have real-time customer support service, often accessed via telephone or a live chat feature. 

Setting up the Blockchain crypto wallet

How to create a blockchain wallet:

Step 1: Head over to the Blockchain.com website and click on the “Create Wallet” icon. Alternatively, download the Blockchain Wallet mobile app from the Play Store or App Store and install it.

Step 2: On the registration window, enter a valid email address and create a super-strong password, then agree to the terms and conditions and click on ‘Continue.’

Step 3: You will need to verify your email address as it serves as your blockchain Wallet’s username.

Step 4: Upon email verification, you will be presented with your wallet address. Write It Down.

Step 5: Your wallet is now set, and you can start buying and selling cryptocurrencies.

How to receive cryptocurrencies into your Blockchain wallet:

Step 1: Log in to your Blockchain wallet and on the user dashboard, click ‘Request.’

Step 2: Click on the cryptocurrency you wish to receive, this will pop up the wallet address and QR Codes.

Step 3: Copy the address or the QR code and send it to the person/entity from whom you wish to receive digital currencies.

How to send cryptos into your Blockchain wallet:

Step 1: Log in to the Blockchain Wallet, and on the user dashboard, click ‘Send.’

Step 2: Choose the currency you wish to send, enter the recipient’s wallet address and transfer amount.

Step 3: The wallet will show you the totals plus transaction fees. Confirm these details and if possible, adjust the fees accordingly, to reflect the speed with which you would like the transaction processed.

Step 4: Click ‘Continue’ to complete the transaction.

Blockchain crypto wallet pros and cons:

Pros:

  • Blockchain wallet has some of the most advanced security features, from biometrics to 2FA and IP blocking.
  • The wallet also has highly advanced trading features that include real-time monitoring of the global crypto markets, in-app exchanges, and access to blockchain/cryptocurrency historical data.
  • It is a hierarchically deterministic wallet that is dedicated to preserving the user’s online privacy.
  • You don’t have to leave the wallet to exchange or swap your crypto with another or stable coins.
  • It hosts a very friendly user-interface that is easy to navigate for both crypto beginners and veterans.

Cons:

  • Blockchain wallet is a hot wallet and therefore more susceptible to online security breaches.
  • Most of its account security features are tied to identity verification, which makes it impossible to trade or hold coins anonymously on the wallet.
  • Despite the advancements, it doesn’t support fiat-to-crypto transactions.

Comparing Blockchain Crypto wallet with other cryptocurrency wallets:

Comparing Blockchain wallet with eToro

Blockchain Wallet and eToro have similar features in that you don’t have to leave the wallet to exchange or swap cryptos. They are quite insistent on solid security features around the trading account, and have established presence in every part of the world. eToro, however, carries the day when it to the number of supported currencies, the platform’s registration and regulation, and support for both fiat and cryptocurrency transactions. Blockchain Wallet.

Verdict – is Blockchain wallet safe?

Despite the fact that Blockchain Wallet is a hot crypto vault, we still consider it one of the safest cryptocurrency wallets around. It has introduced more security safeguards against unauthorized access to your account than any other hot wallet. These, plus the fact that their wallet is feature-rich, makes it a good choice for traders and investors looking for a balance between security and ease of use. These make it a good choice for traders and investors looking for a balance between security and easy to use crypto-wallets.   

 

Categories
Cryptocurrencies

Coinomi Crypto Wallet Review: Is Coinomi The Safest Wallet?

Coinomi is a multicurrency, feature-rich, and security-oriented cryptocurrency wallet app. It was launched in 2014 and has, over the years, gained undergone significant security and operational improvements. These have seen it attract a massive global membership and an unrivaled reputation. On the Coinomi website, the wallet is referred to as the ‘Popular choice’ that’s ‘Trusted by Millions of Users.’

Coinomi is a multicurrency, feature-rich, and security-oriented cryptocurrency wallet app. It was launched in 2014 and has, over the years, gained undergone significant security and operational improvements. These have seen it attract a massive global membership and an unrivaled reputation. On the Coinomi website, the wallet is referred to as the ‘Popular choice’ that’s ‘Trusted by Millions of Users.’

Coinomi is a multicurrency, feature-rich, and security-oriented cryptocurrency wallet app. It was launched in 2014 and has, over the years, undergone significant security and operational improvements. These have seen it attract a massive global membership and an unrivaled reputation. On the Coinomi website, the wallet is referred to as the ‘Popular choice’ that’s ‘Trusted by Millions of Users.’

The site further lists three of its key selling points: Its support for the “Broadest Range of Crypto,” the “Highest Level of Trust,” and the “Most Versatile App.” These claims are also affirmed on the Coinomi Wallet subreddit, where the company states that none of their “phone-based wallets have previously been hacked or otherwise compromised.”

But how true are these bold claims? Is Coinomi truly the safest crypto wallet app?

We sought to answer these by taking an in-depth look at Coinomi. We have evaluated its operational and security features, fees, supported currencies, and comparing it with equally reputable crypto wallets. Here are our findings:

Key Features:

Multiplatform: Coinomi started out as an Android crypto wallet app. Soon after, the iOS app was developed. In 2019, the Coinomi desktop app, compatible with Windows, macOS, and Linux operating systems, was launched.

Inbuilt exchange: Coinomi wallet partners with some of the leading exchanges to provide its members with an all-round in-app exchange. Key among them are Changelly and several other DEXs that facilitate crypto-to-crypto exchanges at the most affordable rates.

Buy with a card via Simplex: In these in-app exchanges, you can buy crypto and pay directly using your credit or debit cards. The move is made possible by the integration of the wallet with the Simplex platform that facilitates fiat to crypto conversions.

DApps browser: Coinomi integrates seamlessly with some DApp browser allowing Coinomi app members to access some of the most popular decentralized apps and Web3 support without leaving the cryptocurrency wallet.

Cold staking: Coinomi wallet not only helps you store your cryptocurrencies securely for a long time, but also has a cold staking option that allows you to stake the coins in your wallet when offline and get rewarded. Investors boost your earnings on qualifying cryptocoins as one can stake their digital assets while waiting for their value to rise.

Convert coins to gift cards: In an industry first, Coinomi, in partnership with Bidali, will let you convert your digital coins into gift cards redeemable at your favorite shops.

Security features:

Password: Like any other crypto wallet app, Coinomi has the password as the first line of defense. You get to set it up during account installation, and you will need it every time you want to login to Coinomi.

Seed phrase backup: Upon creating a Coinomi wallet, you will be provided with 12 words recovery seed. This comes in handy if you ever forget your password or lose the phone or computer hosting your Coinomi wallet. Write this seed down and keep it safe.

Data encryption: The data stored in your Coinomi wallet is secured with a strong password and is also highly encrypted. Coinomi uses cryptography to encrypt this data and ensure it never leaves your wallet.

Non-custodial: Coinomi is also a non-custodial wallet and will, therefore, not store your private keys on its servers. These are under your full control and are only stored within the app with the option of writing them down on paper.

IP anonymization: To further boost user privacy, Coinomi uses IP anonymization. This randomizes your IP every time you conduct a transaction making it impossible for hackers and trackers to link different pieces of information and trace the transactions back to your wallet.

Hierarchic deterministic: The hierarchical deterministic aspect of Coinomi implies that your wallet generates a new address for each transaction. This further boosts your privacy and makes it difficult to link these transactions back to you and your wallet.

Ease of use:

The Coinomi wallet employs highly advanced and innovative technologies that allow for the creation of a sophisticated platform while keeping its dashboard neat and easy to use. The user dashboard is also customizable to some extent, with dark and light modes.

The Coinomi app is also multilingual and has been translated into more than 25 international languages, including English, French, Russian, Chinese, Italian, German, Spanish, and more.

Currencies and countries supported

Coinomi supports more cryptocurrencies, tokens, and collectibles than any other crypto wallet app and even some hardware wallets. These include 1770+ crypto coins, tokens, and stable coins, and over 125 blockchains.

Other tokens and collectibles supported on the platform include all ERC 20 components, Omni Layer, BEP-2, NEM Mosaics, and TRC 10 collectibles. Additionally, access to the DApps browser and the EOS Ecosystems allows Coinomi wallet holders to create its own tokens.

Coinomi crypto wallet cost and fees

According to the Coinomi, the website and all the transactions carried here are free. Coinomi doesn’t charge you to install and use their wallet and integrated features.

However, you will have to pay a competitive fee to the different network miners for verifying and confirming your transactions. How much you pay to buy, sell, and exchange crypto-to-crypto, therefore, depends on the networks, the transaction volume, and confirmation speeds.

This means that the transaction fees are dynamic and that you can choose to pay a higher than the standard fee to have your transaction given preference and confirmed speedily. All these fees go to the network miners and not the wallet developers.

Customer support

Coinomi maintains a comprehensive customer support department. It starts with an elaborate FAQ section on the company website. Other queries can also be pushed to the support team available 24/7 by raising a ticket or contacting them via such social media handles as Telegram, Twitter, and Reddit.

Setting up the Coinomi crypto wallet

How to install the Coinomi crypto wallet:

Step 1: Start by downloading and installing the Coinomi Wallet app from the App Store or Google Play Store.

Step 2: Click ‘Create New Wallet.’

Step 3: On the next window will appear a string of recovery sees words. Write them down in the order in which they appear and store it safely.

Step 4: The next window prompts you to set up a strong multi-character password of at least eight digits for your wallet.

Step 5: The Coinomi wallet doesn’t have default wallet addresses but prompts you to select the coins you wish to use from a dropdown list and before creating associated addresses instantaneously.

Step 6:  Read through the disclaimer and terms and conditions and agree to activate the app.

Step 7: The wallet then directs you to the user dashboard, and you are now set to start buying, selling, and swapping cryptos using Coinomi.

How to receive cryptocurrencies into your Coinomi wallet:

Step 1: Launch the Coinomi wallet user dashboard and tap the menu icon.

Step 2: From the dropdown list, click on the cryptocurrency you wish to receive to get its wallet address and QR code.

Step 3: Copy the address or the code.

Step 4: Send it to the individual, sending you coins, and wait for the balance to reflect on your wallet.

How to send cryptos into your Coinomi wallet:

Step 1: Launch the Coinomi wallet user dashboard and tap the menu icon on the left corner.

Step 2: From the dropdown menu, select the cryptocurrency you wish to send, and click on the send icon

Step 3: On the ‘Pay To’ section, enter the recipient’s wallet address and chose to scan QR code, and on the ‘Amount’ section enter the number of coins you wish to send

Step 4: Confirm that the wallet address and the amounts to be sent are correct before hitting send.

Coinomi crypto wallet pros and cons:

Pros:

  • The crypto wallet employs highly advanced security features, including Hierarchical deterministic wallets and IP anonymization.
  • The wallet has integrated shapeshift, Changelly, and other DEXs to facilitate in-app exchanges.
  • The transaction processing fees are highly competitive and open to customization for speedy confirmation.
  • The app supports the widest range of cryptocurrencies, collectibles, and tokens.
  • The app has a solid reputation with no serious customer complaints and enjoys a stellar 4.6/5 star rating on the App Store after over 16,000+ user reviews.

Cons:

  • The biggest threat to Coinomi is the fact that it is not open-sourced.
  • The crypto wallet is also not as regulated as similar projects like Coinbase or eToro.
  • It is a pure crypto-to-crypto network, and you will, therefore, have to use third-party apps like Simplex if you wish to buy crypto using fiat currency.

Comparing Coinomi Crypto wallet with other cryptocurrency wallets:

Comparing Coinomi wallet with Coinbase and eToro

When paired against similar hot wallets like Coinbase and eToro, Coinomi carries the day. Specifically, when it comes to the use of a number of supported currencies, security features, and competitive yet customized crypto transaction fees. We nonetheless believe that eToro and Coinbase have more versatile platforms as they support fiat to crypto transactions and don’t necessarily rely on third-party exchanges.

Verdict – is the Coinomi wallet safe?

Yes. The Coinomi wallet has embraced some of the most innovative security features. These include the use of passwords and recovery seeds to prevent unauthorized access to your wallet, and the possibility of private keys recovery if you lose the phone or forget the password. Others are IP Anonymization and Hierarchical Deterministic features that mask your online activity to keep off trackers and preserve your online privacy. These added to the fact that Coinomi wallets host the widest range of coins, and its versatility makes it most suitable for the highly diversified trader looking for both a highly secure and low fee crypto wallet.

Categories
Cryptocurrencies

Atomic Crypto Wallet Review: How Safe Is The Atomic Wallet?

Atomic wallet is a decentralized, multi-currency, and feature-rich cryptocurrency vault where crypto enthusiasts can store and exchange digital currencies. It is a multi-platform hot wallet that launched in 2017 under the stewardship of Konstantin Gladych – Changelly co-founder –and Charlie Shrem​ – an American entrepreneur cum Bitcoin advocate and founding member of the Bitcoin Foundation.

Atomic wallet is a decentralized, multi-currency, and feature-rich cryptocurrency vault where crypto enthusiasts can store and exchange digital currencies. It is a multi-platform hot wallet that launched in 2017 under the stewardship of Konstantin Gladych – Changelly co-founder –and Charlie Shrem​ – an American entrepreneur cum Bitcoin advocate and founding member of the Bitcoin Foundation.

Atomic wallet is a decentralized, multi-currency, and feature-rich cryptocurrency vault where crypto enthusiasts can store and exchange digital currencies. It is a multi-platform hot wallet that launched in 2017 under the stewardship of Konstantin Gladych – Changelly co-founder –and Charlie Shrem​ – an American entrepreneur cum Bitcoin advocate and founding member of the Bitcoin Foundation.

It has, however, taken more than just the reputation and rich industry experience of crypto app founders to create an online buzz around the wallet. Much of this is attributable to its feature-rich platform that allows for crypto exchange, swapping, and staking currencies. Equally important was its commitment to crypto privacy and user anonymity.

In this Atomic wallet review, we will be looking to understand if it indeed is one of the safest crypto vaults around. We will also explore some of the wallet’s essential features, look at its pros and cons, vet its cost and transaction fees before comparing it with equally reputable crypto vaults.

Key Features:

Multi-platform: Atomic wallet is available as both a mobile app and a desktop app. The mobile app is available in both Android and iOS versions, while the desktop version supports all the popular operating systems, including Windows, MacOS, Linux, Ubuntu, Debian, and Fedora.

Inbuilt exchange: Atomic Wallet has an in-built exchange to facilitate both peer-to-peer crypto exchanges as well as in-app Crypto swaps. To achieve this, the app has partnered with some of the leading Decentralized Exchanges like Binance, Changelly, and Shapeshift.

Cold staking: In addition to Crypto investing and in-app trading, Atomic Wallet exposes you to the lucrative coin staking. Investors in supported coins like Tezos, Vechain, Pundi, and NEO GAS can now commit their coins safely to validators and get rewards.

Portfolio management: Atomic wallet also features the price tracking and portfolio management tool that allows you to monitor the value of your Crypto investments in real-time and on a unified interface.

Educational and trading resources: The crypto wallet app has also partnered with several crypto market data providers like CoinMarketCap, to help you monitor coin prices in real-time. It also has an elaborate crypto education and a news section that keeps you upbeat with the current happenings in the crypto industry.

Supports card purchases: Atomic wallet in collaboration with Simplex ensures that you get to buy cryptocurrencies using credit and debit cards while safeguarding your right to privacy and living true to its commitment of anonymous crypto trading.

Security features:

Password: When creating a user account on either the mobile or desktop wallet app, you will be required to create a strong multi-character password for your account.

Recovery seed backup: Upon registering an account with the Atomic wallet, you will be presented with 12 words recovery seed. You will need this to recover your wallet and private keys therein if you ever lose the phone or computer hosting it or forget the account password.

Non-custodial wallet: Atomic wallets are non-custodial, and the company servers will, therefore, not store the private keys on your behalf. You will always have full custody and control of your private keys, as they will be stored within your device.

Anonymous trading: Unlike most other Crypto wallet apps, Atomic wallet won’t ask you for such sensitive personal information as your name or email address. Neither will it subject you to the KYC and AML verification checks. The app was specially designed to support anonymous Crypto storage and trading.

AES Symmetric encryption: Any data, including the private keys stored in your wallet, will also be highly encrypted using the AES Symmetric encryption technology to prevent unauthorized access to your digital assets.

Ease of use:

Atomic wallet is also developed using highly advanced technology that makes it possible to maintain a highly sophisticated yet easy to use platform. Navigating through the Crypto wallet app is easy, and so is carrying out basic functions like buying and selling Crypto or monitoring your investment portfolio.

The apps can also be highly customized, allowing to change themes, text and icon sizes, and color. Additionally, both the app and website are multilingual, supporting English, Chinese, Spanish, Dutch, French, Russian, Turkish, Portuguese, Japanese, and German languages.

Currencies and countries supported

Atomic Crypto wallet app is available to virtually any cryptocurrency enthusiast in the world. It doesn’t have international membership restrictions or limitations to the use of virtual networks meaning that even individuals in countries with strict Crypto policies can access the wallet using a VPN.

Currently, Atomic Crypto wallet supports more than 300 cryptocurrencies and individual tokens as well as all the entire ERC 20 tokens.

Atomic crypto wallet cost and fees

You wouldn’t be charged for downloading, installing, and using Atomic wallet and its integrated features. Only the crypto exchange and swapping transactions have minimal charges that go to the network validators/miners and not the atomic wallet developers.

These transaction fees by Crypto exchanges are highly variable and dependent on the transaction volumes and the blockchain network used. Credit card purchases via the Simplex platform; on the other hand, carry a fixed charge of 2% the transaction amount.

Most notably, Atomic crypto wallet app has no limit to the number of coins you buy, sell, or hold in your wallet.

Customer support

Atomic cryptocurrency wallet has a responsive customer support team. For faster response, often a few hours, use the live chat option on the wallet app or their website. Alternatively, open a support ticket, send an email or contact them on their social media platforms like Telegram, Twitter, Reddit, or Facebook.

The customer support team is complemented by an elaborate FAQ section on the Atomic wallet website that features explanatory videos detailing how to interact with the app.

Setting up the Atomic crypto wallet

How to install the Atomic crypto wallet:

Step 1: Start by downloading the crypto wallet app on Google Play, App Store, or on the Atomic wallet website.

Step 2: Click ‘Open Wallet’ to create a new wallet.

Step 3: Create and memorize a super-strong password to protect your trader account.

Step 4: The app will now auto-generate 12 words recovery seed. Write it down on a piece of paper and store it in a secure place. You will need this to recover your private keys should you forget your password or lose the phone.

Step 5: Click next to your account’s user dashboard, and you are set to start buying, selling, swapping, and staking over 300 digital currencies.

How to receive cryptocurrencies into your Atomic wallet:

Step 1: Launch the Atomic wallet user dashboard.

Step 2: Click on the cryptocurrency you wish to receive to access its wallet address.

Step 3: Copy the address and send it to the person sending you cryptos and wait for the funds to reflect in the wallet.

How to send cryptos into your Atomic wallet:

Step 1: Lunch the Atomic crypto wallet user dashboard.

Step 2: Click on the cryptocurrency you would like to transfer out and chose the send option.

Step 3: On the popup window, enter the recipient’s wallet address and the number of coins you wish to send.

Step 4: Confirm that the details are correct, enter your account password, and hit send.

Atomic crypto wallet pros and cons:

Pros:

  • Atomic wallet embraces a host of security features to protect your privacy, like Passwords and private keys; plus, the wallet is hierarchically deterministic.
  • Supports anonymous trading and won’t ask or keep your personal information on private keys.
  • Supports a relatively large and constantly growing list of cryptocurrencies, tokens, and collectibles.
  • Hosts several advanced features, including an inbuilt exchange, real-time crypto market access, and a crypto news section.
  • It supports credit card purchases conducted through the Simplex platform.

Cons:

  • One may consider the fixed 2% fee charged on credit card purchases punitive.
  • The Atomic wallet code isn’t open sourced, raising questions about the developer’s transparency in their security claims.
  • The Atomic swap feature will only support the swap of three cryptocurrency pairs.
  • The app doesn’t support biometrics or the 2FA features making susceptible to internet security threats.

Comparing Atomic Crypto wallet with other cryptocurrency wallets:

Comparing Atomic wallet with Coinomi

Atomic and Coinomi are both hot wallet apps with a shared commitment for account security, easy to use wallet platforms, and integrating as many features into the app as possible. But Coinomi takes this a step further and makes their wallet supportive of as many cryptocurrencies as possible (17000+) and introduces more security measures like IP anonymization. In addition to an inbuilt exchange, Coinomi is also supportive of the DApps browser and the conversion of cryptos into redeemable gift cards.

Verdict – is Atomic wallet safe?

While Atomic crypto wallet lives to the true meaning of anonymous crypto trading and has never been hacked, we still consider its commitment to the wallet safety average. You must note that while it has taken significant strides in coming up with HD wallets and passwords and the backup seed, none of these protects your wallet from remote access breaches. The wallet would, therefore, only be suitable for low volume active traders and not long-term investors. 

Categories
Cryptocurrencies

CoolWallet S Crypto wallet review: How cool is CoolWallet S?

CoolWallet S is an innovative crypto vault by CoolBit X that blends the effectiveness of both the hardware and hot wallets to come up with the most secure hybrid crypto wallet. It has both the features of hardware and hot wallet in that it features a portable hardware component in the form of a card that’s then controlled via a crypto app. Each has its individual security measures and won’t function without the other.

CoolWallet S is an innovative crypto vault by CoolBit X that blends the effectiveness of both the hardware and hot wallets to come up with the most secure hybrid crypto wallet. It has both the features of hardware and hot wallet in that it features a portable hardware component in the form of a card that’s then controlled via a crypto app. Each has its individual security measures and won’t function without the other.

CoolWallet S is an innovative crypto vault by CoolBit X that blends the effectiveness of both the hardware and hot wallets to come up with the most secure hybrid crypto wallet. It has both the features of hardware and hot wallet in that it features a portable hardware component in the form of a card that’s then controlled via a crypto app. Each has its individual security measures and won’t function without the other.

The wallet offers the best of both worlds. It differs from the rest of the hardware wallets in that it uses a wireless connection to communicate with an app. And while most other hardware devices are USB-like, CoolWallet S is designed to imitate the exact dimensions, durability, and portability of a credit card. It is also waterproof, temperature resistant, and bendable.

In this CoolWallet S review, we take a deeper look into its key operational and security features, its pros and cons, and ease of use.

Key Features:

Mobile friendly: Most hardware wallets available today were designed with the desktop app, chrome extension, or a web trader in mind. They connect to a computer via a USB cable. CoolWallet S, on the other hand, is specially designed to work alongside iOS and Android-based apps.

Durable: The CoolWallet S card is made using the credit and debit card technology to make it extremely durable.

Sleek design: The CoolWallet S card has a cool design as it features an on-card screen and an authorization button.

Button: Like most USB-like hardware wallets, CoolWallet S features an on-card button used to authorize transactions or for navigating the card screen.

Inbuilt exchange: The CoolWallet S features a Changelly API that serves as its internal exchange. Using the exchange, CoolWallet S users can swap different cryptos and tokens without leaving the wallet.

Wallet connect feature: The portable wallet uses Bluetooth of the Near Field Communication features to connect wirelessly with the smartphone hosting the ColWallet S app. The connection is always shown on the card screen by the Bluetooth connection indicator, and you can use it with up to three devices.

Innovative UI: CoolWallet S presents you with two easy to use interfaces on the card and on the smartphone app. You can use to either check the balances of your digital assets, create new wallet addresses, or view your transaction history.

Security features:

Pass-code: When personalizing the card and registering with the app, you will be required to create a strong pass-code. You will need it every time you want to log into your app or card.

Biometrics security features: The app is further fortified with biometric security checks like the fingerprint and face ID. Unlike most crypto wallet apps that will use either the password or the biometric, CoolWallet S employs the 2+1 authentication features that allow you to use both the password and biometric checks to access your account.

AES 256 encrypted Bluetooth connection: The card is detached from its associated app and will only connect via a Bluetooth connection. The connection is further secured with AES-256 encryption to eliminate possible compromise of wallet data.

Seed phrase available: Like in the case of any other Crypto wallet app, CoolWallet S also has 12 words seed backup that you can use to recover your private keys in you forgot the password or if the app or card were compromised.

Hierarchically deterministic: The wallet is hierarchically deterministic, allowing you to create multiple wallet addresses that help throw off trackers.

Ease of use:

Apart from both the app and card having very friendly user interfaces, the wallet also designed with the global crypto community in mind. For instance, instead of using English words for passwords and recovery seed phrases, CoolWallet S uses numerals to accommodate the non-English speaking crypto enthusiasts.

Setting an account with CoolWallet S is also easy and straightforward. You also don’t need professional help to send/receive coins into your wallet. Plus, its simplistic app design makes exchanging currencies and tracking your crypto assets beginner-friendly.

Currencies and countries supported

CoolWallet S supports 30+ major cryptocurrencies, including Bitcoin, Ripple, Ethereum, Bitcoin Cash, Litecoin, Dash, and ZEN Cash and USDT. It also supports all ERC 20 tokens and is available in 100+ countries across the world.

CoolWallet S crypto wallet cost and fees

The CoolWallet S costs $99 or $159 when buying a pair. This gets you the CoolWallet S card, its charging dock, and a special paper where you can note down the recovery seed.

You won’t be charged for preserving your digital assets on this wallet, but sending and swapping tokens and coins on the integrated Changelly platforms attracts variable transaction fees. These are dependent on the amounts traded and the blockchain network.

Customer support

CoolWallet S has a highly responsive support team. This can be accessed by opening a support ticket on the website, via email, by contacting them via the live chat or on their different social media platforms. Most of the queries will be satisfactorily answered within two hours.

There, however, is no phone support.

Setting up the CoolWallet S crypto wallet

How to install the CoolWallet S crypto wallet:

Step 1: Start by downloading and installing the CoolWallet S app for your iOS or Android phone.

Step 2: Press the button on the card to activate it and turn on Bluetooth for your phone.

Step 3: The app will soon show a string of letters and numbers representing your wallet address. Click connect to pair.

Step 4: On the app, select ‘Create’ to start the wallet creation process.

Step 5: The app will then ask you to choose the length of your recovery seedeither12-, 18- or 24- words sets. (We advise you to use the on-card screen and not the app to select the seed set). Note the seed down on a piece of paper or save it as an image file.

Step 6: Verify that you have captured the right seed by answering a random seed query.

Step 7: Click the ‘Create a New Wallet’ option on the app to finish the setup process.

(You can now activate the biometric security features on the settings page of your app).

How to receive cryptocurrencies into your CoolWallet S:

Step 1: Log in to your CoolWallet S app and select Receive on the user dashboard.

Step 2: Click on the crypto/token you would like to receive (if not listed, add it automatically at the coin display tab on the settings page).

Step 3: Clicking on the cryptocurrency will display your wallet address and QR code.

Step 4: Copy either and send them to the individual/entity, sending you the coins.

How to send cryptos into your CoolWallet S:

Step 1: Log in to your CoolWallet S app and select Send on the user dashboard.

Step 2: On the pop-up menu, enter the recipient’s wallet address in the TO field and the number of coins you wish to send.

Step 3: Chose the cryptocurrency you wish to send.

Step 4: Review the transaction by confirming the amounts to send and the recipient’s wallet address. This tab will also display the transaction fee that you can modify based on the speed at which you would like to have the order confirmed.

Step 5: Press ‘Send.’

CoolWallet S crypto wallet pros and cons:

Pros:

  • The wallet embraces a multi-layered security protocol guaranteeing the absolute safety of your private keys.
  • CoolWallet S has a sleek design that isn’t just highly portable but also quite convenient.
  • Provides a one of a kind offline wireless storage for your digital assets.
  • It is easy to set up and use for crypto beginners due to its very friendly and simplistic user interface.
  • CoolWallet S hosts a number of important features that include the Changelly API that allows for swaps and in-app crypto exchanges.

Cons:

  • At $99, it is more expensive than equally reliable hardware crypto wallets like Trezor or Ledger Nano.
  • It supports a limited number of cryptocurrencies (less than a hundred) compared to other hardware wallets that support 1000+ coin and tokens.
  • The CoolWallet S technology isn’t open sourced and thus inadequately audited.
  • You will have to re-enter the seed words every time the app/card firmware is updated, which can be cumbersome.

Comparing CoolWallet S with other cryptocurrency wallets:

Comparing CoolWallet S with Ledger Nano S hardware wallet

CoolWallet S can be said to have employed more security measures to fortify both the app and card than Ledger Nano S hardware wallet. It is also more versatile as it features a larger on-card screen and probably easier wallet setup process. The Ledger Nano S hardware wallet, on the other, carries the day when it comes to the number of supported cryptocurrencies. It is also more affordable and even more reputable based on its developer’s exposure to the crypto world and by virtue of having been a pioneer hardware wallet.

Verdict – is CoolWallet S safe?

CoolWallet S is, without a doubt, one of the safest cryptocurrency wallets available today. It is also is one of the most versatile, given that you can use either the mobile app or the card-like hardware device to monitor your digital assets. And this makes it appealing to both the low-volume traders and high-volume investors alike. To enjoy these benefits, however, you will need to dig deeper into your pockets. 

Categories
Crypto Daily Topic

Should You Invest in Cryptocurrency Loans? 

Cryptocurrencies have generated a variety of opportunities for investors to make money. Perhaps the most common one is the commercialization of mining, which by itself is rewarding, but the overhead costs can sometimes exceed the rewards. 

Cryptocurrencies have generated a variety of opportunities for investors to make money. Perhaps the most common one is the commercialization of mining, which by itself is rewarding, but the overhead costs can sometimes exceed the rewards. 

Cryptocurrencies have generated a variety of opportunities for investors to make money. Perhaps the most common one is the commercialization of mining, which by itself is rewarding, but the overhead costs can sometimes exceed the rewards. 

Apart from mining, investors can engage in other profitable operations either linked to the dynamic crypto market, or those that are similar to the conventional economy. 

A good example is the crypto lending concept, which is similar to traditional lending, only that it has the potential to generate higher interest rates. So, how is this concept beneficial to the lender and borrower? Before we answer that, let’s understand how cryptocurrency lending works. 

The Basics of Crypto Lending 

Essentially, crypto lending is a practice of lending digital assets to borrowers who then pay back at a predetermined interest rate. It’s usually done in a peer to peer platform where the borrower must put up some collateral, either fiat currency or digital assets, in order to be approved for a loan. The borrower will then repay the lender using their own tokens or fiat currency after a specific duration of time set by the lender. 

More often than not, crypto-based lending is done for margin trading purposes. In this case, a borrower can either take a long or short position. With a long position, the borrower believes that the price of a certain crypto asset will certainly go up. As such, they’ll request to lend some of your funds through the platform to increase their capital and enjoy bigger profits. It should be noted that the interest rate and payback period is set by the lender. 

For example, say, you are a borrower with $2,000 worth of Bitcoins, which is currently priced at $20,000. This means that you have 0.1 BTC. Now, let’s say you take a long position and borrow $500 against your $2,000 holdings. You’ll now have 0.15 BTC. If the BTC price indeed increases by say 10% to $22,000, your total holdings, including the borrowed amount, will be $2,750. Once you pay back the loan, you’ll have earned more profit – about 25% – than you could have earned with your initial amount. 

Taking a short position works pretty much the same way, only that now you’ll be betting on the falling prices. As such, you borrow the coins when the price is high and sell them when the price is still high. Once the price has fallen, you buy back the coins and refund them to the lender plus the interest. The price difference is your profit, while the interest paid back is the lender’s profit. So, both parties win. 

Is Crypto-lending Safe? 

Like any other form of peer-to-peer lending, crypto-lending comes with its risks. The biggest concern arises from whether there is a guarantee of lenders getting their money back or not. 

To solve this, crypto lending platforms require all borrowers to put up collateral worth more than the amount they intend to borrow. Typically, this concept is referred to as the loan-to-value ratio, which ranges between 60 to 70%, meaning a borrower can only take an amount worth less than the set percentage limit.

Also, if the prices go contrary to what a borrower anticipated, and the loan amount is lower than the margin limit, all their holdings will be liquidated to ensure the lender receives their full lent amount. This goes a long way toward protecting the lender from market volatility. 

Other safeguarding measures put in place include lending the platform your holdings directly. This way, you’ll have peace of mind since you’re lending the exchange and not an individual. 

Advantages and Disadvantages of Cryptocurrency Loans 

In an ideal scenario, cryptocurrency loans are profitable to both the lender and the borrower, but they still come with their own pros and cons. Here’s a look at some of them;

One of the biggest advantages of crypto-lending is that it’s easy to set up an account and get started. As such, there are no skill-sets required, unlike mining or trading. 

Also, compared to mining, lending, and borrowing crypto-asset loans is a more affordable way of earning returns. Also, it doesn’t require you to check on your funds regularly since there aren’t any fast actions involved. In fact, as a lender, some platforms allow you to automate your lending account, such that you receive the paybacks without necessarily monitoring your account. 

On the downside, however, there are no unified taxation and regulatory policies governing the lending process. This makes it hard for individuals to know the tax implications of their lending activities. In the same vein, should there be any dispute, it will be solved according to the regulations of both users and the platform’s jurisdiction. 

Besides the regulation hurdle, some platforms tend to charge high commission rates out of the interest rates paid back by the borrower. What’s even worse is that the commission amounts are set daily and not over the full course of the loan. As a lender, this means that your profit amount is never guaranteed. 

Choosing the Right Platform

Generally, there are two types of crypto-lending platforms to choose from – centralized and decentralized. 

  • Centralized Lending Platforms

Centralized crypto lending platforms are similar to traditional fintech companies that deal with digital assets. This means that they operate under regulations set by a central intermediary who also manages the loan matching process as well as keeps the custody of all assets. 

The platform usually sets the interest rates which are favorable to both the lender and borrower. 

  • Decentralized Lending Platforms

As the name suggests, these platforms aren’t controlled by an intermediary or central authority. They don’t follow the Know Your Customer (KYC) processes, nor do they keep custody of the digital assets. 

Also, except for a few, most decentralized platforms have variable interest rates, depending on the demand and supply of the asset on the platform. So, it would be safe to assume that decentralized crypto-lending platforms can be more profitable to a lender than their counterparts. 

Key Takeaways 

If you hold a substantial amount of cryptocurrencies but don’t have immediate intention to use or sell them, investing them in a crypto-lending platform can be a sound investment. This way, you’ll earn passive income while still holding your initial crypto amount. Well, the earned interest may not be much but think of crypto loans as a diversification investment tool. More so, you can leave the interest to accumulate to significant amounts or re-invest it to earn more returns.  

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Cryptocurrencies

What are Pegged Cryptocurrencies? 

The violent price swings witnessed in the crypto market is part of the reason why virtual currencies haven’t found favor in the public’s eye. While the volatility can result in quick gains, unexpected losses are also inevitable. This explains why digital currencies are more speculative investments than a store of value. It’s even harder for merchants to accept cryptocurrencies as payment due to their dynamic prices. 

The violent price swings witnessed in the crypto market is part of the reason why virtual currencies haven’t found favor in the public’s eye. While the volatility can result in quick gains, unexpected losses are also inevitable. This explains why digital currencies are more speculative investments than a store of value. It’s even harder for merchants to accept cryptocurrencies as payment due to their dynamic prices. 

The violent price swings witnessed in the crypto market is part of the reason why virtual currencies haven’t found favor in the public’s eye. While the volatility can result in quick gains, unexpected losses are also inevitable. This explains why digital currencies are more speculative investments than a store of value. It’s even harder for merchants to accept cryptocurrencies as payment due to their dynamic prices. 

However, the recent entry of pegged cryptocurrencies is proving to be a solution to the crypto market’s volatility. In fact, they have the potential to win more investors into the virtual currency space, making digital assets acceptable across the world. But what exactly is a pegged cryptocurrency? 

Pegged Cryptocurrency Overview 

Pegging is a financial concept whereby an unstable asset is tied to a more stable asset to mitigate volatility. 

Similarly, when a digital currency’s value is tied to that of some other medium of exchange, it is said to be pegged. Usually, the coin is tied to a stable fiat currency such as the US dollar, gold, or any other bank-issued currency. Tether is an ideal example of a pegged cryptocurrency whose value is tied to the US dollar. 

In addition to being an alternative store of value, pegged cryptocurrencies help compliment the typical cryptocurrency trading.

If, for instance, you made huge gains from trading volatile cryptocurrencies but fear that the gains might evaporate soon, you can safeguard your gains by trading them for Tether tokens, usually denoted as USDT. This way, even if the dollar loses its value, the price decline won’t be as huge as that experienced in the digital currency market. 

Also, in a bearish market, pegged cryptocurrencies can be used to increase the number of tokens/coins in your portfolio. This is especially true because a pegged currency’s value isn’t affected when the market dips. But since it’s still available in the crypto market and has not been exchanged into fiat currency, you can leverage on the dip by making more purchases to increase your coin/token holdings. 

How Crypto Pegging Works

Cryptocurrency developers wishing to peg their tokens to a stable asset must at all times have the actual asset in reserve as proof of pegging. This is to say that if a cryptocurrency is backed by gold or the US dollar, the project developers should have vast amounts of gold/dollars in vaults to guarantee the pegged value of their tokens. 

In the case of Tether, each token of the coin is tied to the value of one US dollar. Should the coin fail for some reason, investors can then go to developers to claim a refund that is proportional to the number of tokens that they held.

Benefits of Pegged Cryptocurrencies

There is more to pegged cryptocurrencies than just being an alternative hedge against market volatility. 

  • Improved Liquidity 

Compared to typical cryptocurrencies, pegged tokens can be liquidated easily and faster. This is especially true for coins pegged to a fiat currency. They serve as a liquidity vent through which other digital currencies can be swapped for more stable assets. 

  • Offer Affordable Remittance Transaction Cost

Sending remittances overseas is characterized by high transaction costs. If you are sending the funds in the form of digital currency, for instance, Bitcoin, the process is overly slow and sometimes expensive. It becomes even more expensive when you factor in the volatility of the coin, which may result in the recipient receiving less than the amount expected. At the same time, sending fiat currencies overseas has its own challenges, such as an amount limit which you can send at any given time, as well as accumulating transaction costs. 

Pegged cryptos, on the other hand, offer the best of both worlds. First, they are less affected by the market movements, which helps minimize transaction fees. Also, since they are virtual currencies by nature, they aren’t affected by remittance transfer limits.

As such, they can be transferred to various jurisdictions in an affordable process compared to money transfers. Once you consider the foreign exchange-swapping hurdles that plague fiat currency transfers, it becomes even clearer as to why pegged cryptocurrencies are the most viable option. 

Risks Associated with Pegged Cryptocurrencies

One of the biggest risks associated with pegged cryptocurrencies is investors can never be sure if a coin is backed up by real funds. For this reason, before investing in a pegged cryptocurrency, note that it is not enough for a developer to simply claim that their coin is pegged. They must be transparent with their reserves by providing physical proof that the backup funds are available. Ideally, the developers should be open to third-party audits of their financials to verify that indeed the coin is backed up by a stable medium of exchange. 

Also, the fact that a coin is backed up by physical funds stored in large amounts is a problem in itself. It means that the funds are prone to theft and can even disappear for some other reason, causing a decline in the token’s value. Such cases mainly affect gold-pegged cryptocurrencies. Therefore, investors should examine the credibility of who stores the gold of a particular coin and where it is housed. 

For coins pegged to a fiat currency, the government doesn’t take kindly to developers linking a product to the value of a central bank currency. To successfully peg their currency, the developers are required to obtain the necessary paperwork and license as well as maintain a public record of their holdings. So, be sure to check the whitepaper of a pegged crypto to ascertain whether it maintains compliance. 

At the same time, it is pretty hard to make profits from a pegged cryptocurrency. This is because the buying and selling price of the digital coin has the same value as that of the fiat currency. It’s probably the reason why developers fail to convince investors to store their assets in digital tokens instead of fiat currency. 

Conclusion

Unfortunately, there have been only a handful of successful pegged cryptocurrencies in the market. Nonetheless, it’s undeniable that they play a vital role in bridging the gap between the crypto-space and the traditional economy. With time, as more developers continue to launch pegged cryptos, their role will be appreciated and eventually bring in more investors in the market.