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Crypto Daily Topic

5 Crucial Principles for Investing in DeFi

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

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

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

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

Check the Number of Active Users 

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

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

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

Source: Dune Analytics

Put Your Money in What You Understand

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

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

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

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

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

Watch Out for Gas Fees!

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

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

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

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

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

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

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

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

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

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

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

DeFi is only a Portion of Your Blockchain Investment

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

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

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

Endnote

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

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

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Cryptocurrencies

Should You Invest in Privacy Coins in 2021?

As cryptocurrency use cases increase by the day, several investment opportunities have cropped up, making it increasingly difficult for fintech investors to choose their portfolios’ best options. 

One of the viable investment options in the crypto space is privacy coins. The first of these coins was launched in 2014, paving the way for several others. Today, there are about 86 privacy coins, each with its unique feature. 

Privacy coins are increasingly becoming popular among crypto enthusiasts and investors. If they have piqued your interest, you’re probably wondering if you should invest in them in the coming year. After all, they offer several lucrative benefits that you just can’t ignore. 

Well, this article seeks to provide some answers and determine whether privacy coins will bring in significant returns in 2021. 

What Are Privacy Coins?

Before analyzing their worth as investment vehicles, we must first define what they are and why they are causing a stir in the crypto world.

Privacy coins are a type of cryptocurrency that allows the users’ total anonymity when transacting on the network. Older cryptocurrencies, such as bitcoin, aren’t entirely private. The transactions are recorded on a public ledger, allowing anyone with enough resources and determination to track transactions from their origin to their destination. 

Privacy coins offer different levels of privacy to their users. Some of these coins hide the users’ ID, the origin of transactions, wallet addresses, and balances. The extra privacy makes these coins a favorite for users who prefer not to leave a trail when transacting on a network. 

The enhanced security features of privacy coins make them stand out from other cryptocurrencies. For example, Monero (XMR) uses ring signatures to blur the public ledger. This way, it becomes harder to trace the origin of a transaction, making it difficult to determine the number of coins held by a particular node. 

Dash, on the other hand, has the PrivateSend feature. It uses the CoinJoin technique to mix up the network transactions, quite similarly to how bitcoin tumblers work. 

Privacy Coins and Government Regulation

One of the most significant factors that’ll influence investments in privacy coins in 2021 is government regulation. Over the last few years, governments worldwide have been looking for ways to regulate crypto use in their sovereign states, and some have succeeded

For the most part, the regulation aims to make crypto transactions more transparent, which helps curb illegal activities. While this move is great for other cryptocurrencies, what does it mean for privacy coins?

Crypto enthusiasts are drawn to privacy coins by the lucrative security features. If government regulations are imposed on these coins, they risk being stripped of the extra-security features. 

Will this be the end of privacy coins, and should you invest in them in the face of this impending doom? 

Well, the truth is that members of the crypto community will always have an interest in privacy coins. As regulatory bodies worldwide continue finding ways to dictate how cryptocurrencies are used, the need to remain anonymous will increase. Therefore, investors will shy away from other cryptocurrencies, thanks to the increased scrutiny, and turn to privacy coins. 

The exact market size for these digital currencies is currently unknown. Still, crypto enthusiasts and investors will always turn to them to escape the watchful eyes of the government and regulatory bodies. Privacy coins will keep growing in places with crypto use restrictions as the added security becomes a significant selling point. Therefore, developers will have to find more ways to keep users’ data private on a network, which will ensure the continuous growth of the global market for privacy coins. 

3 Reasons Why You Should Invest in Privacy Coins

The privacy coin market will keep growing and is a worthy venture to look into in the coming year. These digital currencies provide several benefits, including reduced chances of money laundering incidents

If you’re still undecided, here are three reasons why you should put some of your money in privacy coin projects. 

Long-Term Use Case

The crypto industry is ever developing, and new projects keep emerging each day. Although most of them have some sustainable use cases, several don’t have much to offer. As more crypto projects flood the space, only those that provide actual solutions to users’ problems will survive. 

Most crypto enthusiasts got on board with digital currencies because of benefits like anonymity. However, they discovered that older cryptocurrencies like bitcoin weren’t exactly private. Therefore, developers came up with ways to curb this challenge, and privacy coins seem to be the best solution thus far. 

Investors and other crypto users will keep seeking to remain anonymous while transacting, which is why you can be assured that privacy coins are in for the long haul in the crypto industry. 

Freedom of Use

One of the biggest disadvantages of having the government track crypto transactions is that users are limited in using their digital currencies. For example, donating to political organizations or other counterculture groups becomes a problem, especially if the government is against it. 

With other cryptocurrencies, governing bodies only require access to the public ledger to track transactions on the network and figure out where the donations came from. Privacy coins dispel this disadvantage, thanks to the top-notch security features. Therefore, you can always donate to any organization of your choice without worrying about being tracked. 

Portfolio Diversification

Every investor worth their salt knows that one of the crucial factors to successful investments is diversifying their portfolios. Having different investment vehicles reduces the risk of loss and helps ensure greater returns. 

As a fintech investor, you have a variety of investment vehicles to choose from. Investing in privacy coins is one of the ways to get into the crypto industry. It provides a sustainable investment that has the potential for greater returns as more people get on board and find different use cases for these digital currencies. 

Parting Shot

So, is investing in privacy coins in 2021 a good idea? Absolutely!

The industry is growing rapidly, and 2021 will see more crypto enthusiasts get on board. Privacy coins offer one of the most sought-after traits in digital currencies-anonymity- which is why they’ll remain viable for quite some time. 

Like any other investment, you should carry out your research before staking your money. You’re spoilt for choice when it comes to the best privacy coins to invest in, but remember, don’t stake more than you can afford to lose.

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Crypto Daily Topic Cryptocurrencies

How Bitcoin Has Transformed Crowdfunding

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

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

Why Bitcoin?

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

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

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

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

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

Centralized versus Decentralized Crowdfunding 

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

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

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

#1. Venture Capital (VC) Funding

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

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

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

#2. Initial Coin Offerings (ICOs)

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

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

#3. Anonymous Donations

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

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

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

Final Thoughts

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

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Cryptocurrencies

Ready to Trade Cryptocurrencies? Read This First…

In 2013 I started investing in cryptocurrencies, to be more exact on Bitcoin. It all started when one of the people I followed on Twitter posted an image of a USB with the logo of a Bitcoin. On Twitter, he commented that he had started mining his first Bitcoins. The subject in question caught my attention as on the one hand I had not the remotest idea that it was a Bitcoin, and on the other hand, the word «mine» created confusion when trying to relate it to a device with a USB connection.

I made some searches and discovered that Bitcoin was a cryptocurrency or digital currency, open-source, decentralized, whose creator was unknown and that from its origin in 2009 had gone from worth cents to about $280, only to collapse later. I found the story very interesting so I kept looking for information on the web and especially on the Bitcointalk forum which was one of the few sites where you could find valuable things. At the end of that same summer, I bought my first Bitcoins so that I could better understand firsthand everything I was learning.

That was briefly my beginning in the world of cryptocurrencies. Since then everything has evolved a lot and I have had the opportunity to go through several bullish and bass cycles in which I have made countless successes and mistakes. In this post, I will comment on which are in my opinion the most important things if you want to start investing in cryptocurrencies.

Learn Before Investing

If you want to be successful by investing or trading you need to be trained and prepared for it. If we talk about cryptocurrencies we must add some additional difficulties compared to other traditional financial assets. First, it requires a learning process to understand its technology and peculiarities as well as having great volatility and less liquidity than other types of investment. Therefore, investing without any preparation can lead us to lose all our money so as a starting point I would recommend:

Acquire general knowledge about blockchain and cryptocurrencies: their basic operation, as a transaction occurs, where cryptocurrencies are stored and in general understand the entire ecosystem related to the blockchain.

Technical Analysis: it will allow you to analyze a chart, know in which phase of the market we are, and look for points of entry as precise as possible.

Fundamental Analysis: when we want to invest in a listed company we analyze its strengths, weaknesses, business model, certain ratios, etc. To invest in cryptocurrencies we have to do something similar so we have to familiarize ourselves with certain ratios, metrics, and factors to analyze in any project in which we are interested.

Be informed about the latest news, both those directly related to cryptocurrencies and others at the macro level that can also influence the price.

Focus on Long-Term Investment

A mistake I made for quite some time was to be too attentive to the short term and not to have a broader view of the market. With few exceptions, I think we should forget about short-term trading or intraday trading and it is better to focus on the medium and long term. The idea is to try to make profits in the big phases of climbs and to get away in periods of great noise and uncertainty. We must try to follow much of the trend when a new upward cycle begins.

In addition, focusing on longer timeframes reduces emotional and irrational reactions to the short term that most people are victims of when investing in any market. To sum up the ideas a bit, it is not necessary to open operations with cryptocurrencies every day or week, as it would almost certainly lead to losses. You will probably make 80-90% of your earnings during bullish cycles so for the rest of the time a good idea is to focus on preserving capital.

Worry About Safety

Most of you may have heard stories about stolen bitcoins, hacked exchanges, lost private keys, … etc. When all there is money on the table is important to take all possible security measures. It is often claimed that we are our own bank when we use Bitcoin and cryptocurrencies, this tells us that we are the only ones responsible for protecting our capital.

Some of the things you can do to keep your investments safe are:

Activate the dual authentication factor: Enabling 2FA (dual authentication factor) is the first thing to do immediately after opening an account in an online exchange or purse where your cryptocurrencies are. All exchanges have this option and this way you make sure that if your login and passwords are compromised, theoretically no person has the possibility to enter your account unless they also enter the 6-digit code that only you have the power to access on your phone. Also, enable it in your email accounts.

If possible, avoid 2FA via SMS and use a single-use password application such as Google Authenticator that supports a multitude of exchanges and applications such as Gmail, Dropbox, Coinbase, Bitstamp, Binance, etc.

Protect your passwords: Use long, as secure as possible and different passwords on each of the pages or apps you sign up for. As it can be a bit cumbersome every time you want to access them, use a password manager. These programs allow you to store a lot of passwords in an encrypted database, so you only have to memorize one key to access all the others. Some recommended password managers are LastPass or KeePass.

Use purses or wallets for cryptocurrencies: This point and the previous one are related but are of such importance that I prefer to dedicate a single paragraph to it. A wallet (also called a wallet) is the place where we keep our cryptocurrencies and allow us to send and receive them. Although blockchain technology is very secure, exchanges or exchange houses are a very weak link within the ecosystem and the number of hacks that have occurred since the birth of Bitcoin has been countless.

Among some of the most important, we can highlight the hack of the exchange platform MT.Gox in February 2014 in which a total of approximately 744,408 BTC were stolen or the Cryptopia exchange hack in January 2019 in which approximately $16 million was stolen.

For all the above, avoid keeping your cryptocurrencies in exchanges and keep them as safe as possible using purses to keep your investments safe.

Don’t Invest Money You’re Not Willing to Lose

It’s a super-repeated phrase in the investment world, but it’s still a common mistake. During the last bearish cycle, Bitcoin lost approximately 84% of its value. Many other cryptocurrencies suffered much greater losses, not counting those that have disappeared along the way losing many people all the money invested.

Even if you have an investment plan, adequate risk management and you are able to manage your positions correctly, there are still other risks inherent to the investment in cryptocurrencies, such as those discussed in previous sections related to security, make you lose all your capital.

Therefore, as a starting point when investing in Bitcoin, Ethereum, Ripple, Litecoin or any other crypto is that you’re only willing to invest the capital you are willing to lose. It must be money you don’t need in your day to day so that if you lose it doesn’t affect your life.

Develop a Critical Vision

One of the most widely used abbreviations in the crypto world is DYOR, which comes from the English «Do your own research» which means that you must do your own research before investing in a project. On the date I write this article, there are more than 2,000 cryptocurrencies and tokens on the market. Some are projects with great growth potential while others are destined to disappear or are simply scams. You may also find several hundred opinions on projects or predictions about the price of Bitcoin in the future on social networks.

For all the above my recommendations are:

-Be skeptical of information you may find in media such as blogs, RRSSs, or newspapers.

-Don’t invest your money based on other people’s opinions.

-Make your own analyses that support your investment decisions. So you will be solely responsible for your successes and mistakes and will be a good starting point to improve your strategies and make better decisions in the future.

-To analyze in depth a token or cryptocurrency and form your own opinion, some of the sources you can use are:

-Web page for project information, development roadmap, work team, etc.

-Read his whitepaper.

-Telegram groups/Discord.

-Social media, blog, and other communication channels

-Perform Google searches where you will find analysis and reviews.

All this information, together with the knowledge you acquire through learning, will lead you to ideas and thoughts of your own.

Bitcoin Is Tops

Although many competitors have emerged, Bitcoin remains the most important cryptocurrency due to:

  • Increased market capitalization
  • Increased number of users
  • Increased security of the network

Greater liquidity: when investing, Bitcoin has more volume of trading in exchanges than the rest of cryptocurrencies and is also the first trading in the regulated futures market. In addition, it continues to await the approval of an ETF that would allow a large number of investors to invest in Bitcoin without having to worry about the purchase and storage process as we do now.

Bitcoin as a reserve of value: some characteristics such as its scarcity or that it has no correlation with any other financial asset makes it gradually start to be considered as a possible reserve of value such as GOLD. According to the words of Jerome Powell, President of the Federal Reserve of the United States on July 11 «Bitcoin is a speculative reserve of value just like Gold». Considering from whom this statement comes must be taken into account. For all these reasons, and also for others, I consider Bitcoin the cryptocurrency with the greatest projection for the future.

For this reason:

-I always have bitcoin as a reference point when analyzing the market and planning the strategy to follow.

-When I invest in cryptocurrencies, I always maintain a high percentage in BTC as it usually has a good performance even though at certain times some altcoins may have higher returns.

FOMO: Watch Your Emotions

Some technologies may be new, but people’s behavior is old. Markets from the beginning are largely driven by emotions and the strongest are fear and greed. The expression «FOMO» (fear of missing out) whose translation is something like fear of missing something, refers to the emotions mentioned above and that lead us to make wrong decisions.

Very often, when a cryptocurrency in which we want to invest begins to increase its price quickly, we are tempted to enter for fear of staying outside and not making money. You have to avoid buying by chasing the price in this way as many times at the time of buying, the price will start to correct and we will get caught in losses.

As a significant example, we can think of many people in December 2017 entering into Bitcoin highs around $20,000 guided by FOMO. What does this lead to? On the other hand, the big investors were selling the Bitcoins that they bought at lower prices, which later led to the price drop and the beginning of the bearish cycle in which many people were trapped.

The way to avoid being dragged by emotions is to create an investment plan and follow it. Let us not enter when the market is widespread when we should have done so earlier according to our investment plan.

The cryptocurrency market is very unpredictable and volatile, so to start we can start with strategies such as DCA (Dollar Cost Averaging), in which we make purchases spaced in time. We will not capture the soils of the market, but we will get acceptable yields. On the other hand, being aware of our emotions and detecting in this case the feeling of thinking that we are going to stay out is a first step to correct it.

Conclusion

These have been the things that I consider most important when starting to invest in Bitcoin, Ethereum, Ripple, EOS, BNB, or any other cryptocurrency that you are interested in.

Categories
Crypto Daily Topic Cryptocurrencies

What Exactly is Proof of Keys?

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

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

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

Understanding Proof of Keys 

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

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

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

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

What are the Intended Outcomes of Proof of Keys Day? 

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

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

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

#2. Remind crypto holders to actually own their funds 

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

#3. Expose dishonest crypto exchanges

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

#4. Celebrate Bitcoin’s genesis block

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

How to Participate in the Proof of Keys Movement

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

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

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

Final Thoughts

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

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Cryptocurrencies

Blockchain in Fashion  and Luxury Retail

Nearly every industry these days is discovering the potential and power of blockchain. Even fashion, which you may not expect, is slowly onboarding the tech. The fashion industry is one where fraud is all too common – at least when it comes to sourcing authentic materials. But putting aside the solving of problems, are there ways in which blockchain can make the fashion industry better?

In this article, we’ll discover that yes, there are. In fact, several brands are spearheading the shift to the blockchain, including the luxury jewelry industry. Whether it’s increasing transparency, giving fashion workers a fairer shot, reducing wastage, blockchain can do so much for fashion. 

With that, let’s dive into how blockchain can be good for the fashion industry. 

#1. Monitoring deliveries 

With blockchain, fashion companies can be assured of items and parcels, making their way to the desired destination. Participants to every delivery can monitor real-time where an item is. Having to wait for deliveries is a tedious and productivity-decreasing process. This becomes even worse when a project relies on several deliveries. It can be a tall order keeping track of every single delivery. And in case of losses, that might turn up bad real fast. 

Blockchain-powered tracking of deliveries and purchases can reduce the likelihood of losses and the confusion that arises from customers having to run around trying to retrieve persons that didn’t make it on time/at all. Every single step can be monitored on the transparent blockchain, where everyone can see the progress, making for an efficient and desirable experience for everyone involved.

 #2. Reducing counterfeits

The blockchain could help dramatically reduce counterfeits. In fashion, authenticity is highly valued, and in the future, a QR code to verify genuineness will be the standard. If an authentic item has been switched for a fake in the distribution process, it will be very easy for the blockchain to smoke that out. 

The Italian government recently pumped €15 million into blockchain technology to help reduce ‘Made in Italy’ counterfeiting in various industries, including fashion. The introduction of the technology will go a long way to protecting authentic ‘Made in Italy’ goods. 

#3. Reclaiming ownership

With the rise of nonfungible tokens (NFTs), people’s interest in blockchain ownership has also spiked. Blockchain allows people to own their data and intellectual and physical property in a trustless and verifiable manner. 

Fashion designers are already taking advantage of this possibility. Martine Jaelgaard, a London-based designer, incorporated QR codes in her garments, which allows them to be recorded and tracked on the blockchain. 

Paris-based Satoshi Studios sells high-quality sneakers that can be tracked using the blockchain using a QR code. This allows an individual to track the origin and supplies for the material and every process in manufacturing. 

#4. Provenance

The luxury industry of diamonds benefits from blockchain as companies use it to trace every step of the supply process. From mining to transporting to molding to sales, it’s easy to monitor every component of the process. 

Major diamond brand DeBeers is leading an industry-wide move into blockchain adoption, as blockchain-based diamond tracking platform Tracr becomes more influential. London-based diamond retailer Taylor & Hart has teamed up with blockchain company Everledger to authenticate the source of diamonds using the blockchain. Brilliant Earth, a San Francisco-based jewel retailer, is also using the Everledger platform for the same end. 

Such transparent processes ensure that buyers have more confidence in what they’re purchasing – together with its source, businesses in the diamond industry can keep their reputation. 

#5. Supply chain management

Blockchain can infinitely improve supply chain management for all kinds of industries. A lot has to do with transparency: it’s possible to track the movement of materials from the manufacturer to the retailer and, in some cases, ownership. 

Fashion giant Burberry recently partnered with IBM for a blockchain-based protocol that would allow customers to register their items and allow the viewing of the history and information about the garment and its impact on the environment and even people. 

The protocol, dubbed ‘Voyage’, allows customers to view an item’s supply chain before purchasing and registering them on the blockchain using corresponding serial numbers. Voyage is a pioneering information tool that will allow end-users to ascertain whether the right material has been used and if working conditions were good for workers.

#6. Improve employee welfare/reducing the recalling of products 

The transparency accorded by blockchain means fashion businesses can look at the data surrounding the supply chain’s employees. We hear reports all the time about poor working conditions or pay for workers all over the world. With blockchain in fashion, it will be easier to highlight concerns and improve employee welfare. This can include logging in the hours worked in the blockchain – and these hours being accounted for fairly. 

Also, blockchain-powered quality assurance can help prevent unnecessary costs, and items are less likely to depreciate in quality while being taken to the customer. 

#6. Blockchain-based warranties and coupons 

Maintaining open-source records of when goods were purchased could make it infinitely easier for manufacturers, retailers, and consumers to track when goods were purchased and keep records of warranties and guarantees. 

Customers will no longer have to hang on to physical receipts for years. All they will need to do is log into an account and access the same purchasing information as to their manufacturer and retailer.

Also, it will be easy for retailers to offer digital coupons to their customers. Such an issuance process is not only transparent; it also allows retailers to reach wider audiences in a more effective and cost-efficient process. 

#7. Consumer data ownership

Blockchain tech will help participants in fashion track items, but consumers can also have more control over their data. When fashion brands enter customer’s data on the blockchain, customers can view any activity surrounding it. 

This is incredibly important, especially in an era when concerns around data privacy become more prevalent than ever, and companies like Facebook face increased regulatory pressure around their treatment of user data. 

Final Thoughts 

Blockchain can offer so much to the fashion world. Between facilitating transparency to ensuring fair work practices to cost efficiency to the reduction of waste to improving customer experience, there’s no end in sight for the incredible potential of blockchain to positively disrupt the fashion world. Ultimately, the tech will serve to improve the relationship between brands and customers for the good of everyone involved. Blockchain can herald a new future for fashion. 

Categories
Cryptocurrencies

What’s Ethereum 2.0 and Why Does it Matter? 

After a years-long wait, Ethereum 2.0 is finally here. Well, almost. The major upgrade will see the Ethereum network fix various scalability and security issues. The most notable shift will perhaps be moving from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) protocol. 

But this is just a scratch on the surface. With Ethereum being one of the most important cryptocurrencies in the world, Ethereum 2.0 is set to shake up not just the Ethereum ecosystem but cryptoverse in general. 

Understanding Ethereum 2.0

Ethereum 2.0 is an upgrade to the Ethereum protocol. Also known as Eth2 or Serenity, the update is meant to improve the scalability and security of Ethereum. The current Ethereum blockchain, with the scalability of 15 transactions per second (TPS), can simply not handle the volume that would be required to handle millions of transactions per second. Eth2 will not just power dramatically more than that; it will also remove bottlenecks for developers and users.

Ethereum founder Vitalik Buterin and the team have been working on Eth2 for years now. This is because scaling a blockchain without sacrificing security and decentralization is not an easy task. Eth2 will address these issues through several important features that will be starkly different from the Ethereum we have now. 

What’s the difference between Ethereum and Ethereum 2.0? 

What will mainly distinguish the two versions is that Ethereum 2.0 will feature a proof-of-stake consensus, implementing shard chains and the beacon chain. Let’s look at each of these features in more detail. 

#1. Proof-of-stake 

Ethereum currently implements a proof-of-work consensus model to secure the network and maintain and facilitate an incentive mechanism to reward miners who confirm and validate transactions on the network. Unfortunately, PoW requires huge amounts of energy – which is not sustainable in the long run. 

PoS is a far faster and sustainable alternative to PoW. PoS involves granting stakers in the network the right to become a validator and get paid to verify transactions. Other validators can confirm the “minting” of the block. If there are enough confirmations, the block can be added to the blockchain. Validators will then be rewarded with block rewards for the successful block. 

PoS is a lot of times better than PoW when it comes to energy-efficiency. This is because, unlike PoW, there isn’t an energy-intensive process required to validate blocks. This is also good news for individuals who want to help secure the network. 

Another feature that a PoS model will enable security on Ethereum 2.0 not previously possible with PoW. PoW is susceptible to a 51% attack. The PoS model will not only reward validators for being honest; it will penalize attempts at fraud. One such penalty will be ‘slashing,’ which will not only involve the validator in question being forced out, but all/part of their stake will be penalized. 

#2. Sharding 

Individuals who wish to access the Ethereum network have to do that via a node. Nodes store a copy of the entire Ethereum network, meaning they have to download it. This takes up too much storage and slows things down. 

Shard chains act like the blockchain but only hold a specific subset of the blockchain in question. This means nodes only have to manage a ‘shard’ of the entire network. This goes a long way in increasing transaction throughput and enhancing scalability. 

#3. The beacon chain 

Shard chains will work in a parallel version. This necessitates a mechanism of sorts to keep them in sync with one another. Enter the beacon chain, which will facilitate consensus to shard chains. 

Beacon chain is a completely new, proof-of-stake blockchain rendering that will be the coordinator of the whole ecosystem. The chain will facilitate data sharing between the shard chains and facilitate scalability. The beacon chain will be the first roll-out feature of Eth2. 

How Ethereum 2.0 Will Be Rolled Out 

Ethereum 2.0 will not be released at once but rather in three phases. Each phase will feature a crucial feature to contribute to the success of the new blockchain. 

#1. Phase 0

Phase 0 constitutes the first rollout, and it will come down to the release of the beacon chain, which is central to the network’s functioning. The beacon chain will start accepting stakers’ deposits in preparation for the proof-of-stake consensus. All registered stakers will not be able to withdraw from the contract until shard chains are put in place. Afterward, staking deposits will be locked up until the next rollout. The Phase needed a minimum threshold of 524,288 ETH to launch. This target has already been met and even passed. 

#2. Phase 1/1.5

The next phase will be two phases combined: Phase 1 and Phase 1.5. Phase 1 will bring with it shard chains, which will allow validators to produce blocks via a PoS consensus. Phase 1.5 will officially now introduce shard chains and begin the transition from proof-of-work to proof-of-stake. This phase will be released in 2021. 

#3. Phase 2 

This will be the final phase, whereby the blockchain will fully support shard chains – which will have taken on new features and capabilities. The shards will have the ability to integrate with smart contracts, allowing decentralized applications (DApps) developers to mesh seamlessly with the network. This phase will be slowly rolled out in 2021 and beyond. 

When Will Ethereum 2.0 Be Released? 

The Ethereum 2.0 upgrade will start rolling out on December 1, according to a blog post by the Ethereum Foundation on November 4. The launch is conditional on at least 16,383 validators, each staking 32 ETH to make up 524,288 ETH. Vitalik Buterin led the way in depositing ETH, putting up 3,200 (worth more than $1 million), according to Etherscan, which tracks Ethereum transactions. See the launch pad where ETH is being deposited here

Ethereum enthusiasts are naturally excited about the launch and hope everything will fall in place. If the launch is successful, the Ethereum network as we know it will change a lot – and for the better. 

Closing Thoughts 

Ethereum 2.0 is a long-awaited update to the world’s second most popular crypto and blockchain network. Having been introduced to the world of smart contracts and DApps, the network has been the most popular go-to option for DApp developers worldwide. But in recent years, the network has been grappling with scalability issues that would have proven unsustainable in the long term.

The rollout of the new network will take a while, even longer than many expect. But as long as the train will soon leave the station – that’s good enough news for the community. 

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Crypto Daily Topic Cryptocurrencies

What’s Phishing and How Can You Protect Yourself?

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

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

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

How Does Phishing Work?

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

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

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

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

Types of Phishing

#1. Cloning

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

#2. Typosquatting

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

#3. Impersonation 

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

#4. Malicious/ fake apps

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

#5. Spear phishing

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

Phishing and Cryptocurrencies Scams

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

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

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

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

How to Protect Yourself

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

#1. Exercise caution, always

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

#2. Access websites directly

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

#3. Check links before clicking 

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

#4. Don’t ignore suspicious items

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

Final Thoughts

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

Categories
Crypto Daily Topic Cryptocurrencies

What Exactly Are Dark Pools? 

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

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

Understanding a Dark Pool

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

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

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

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

Cryptocurrency dark pools

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

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

Why Use Dark Pools? 

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

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

This means: 

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

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

Advantages of using a dark pool

There are several benefits of taking it dark: 

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

Controversies surrounding dark pools 

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

Decentralized dark pools

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

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

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

Closing Thoughts

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

Categories
Crypto Daily Topic Cryptocurrencies

How to Buy Ethereum Using PayPal

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

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

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

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

Best Places to Buy Ethereum Using PayPal

#1. LocalCryptos

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

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

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

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

#2. eToro

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

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

#3. PayPal

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

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

Cost and Safety Implications

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

Final Thoughts

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

Categories
Cryptocurrencies

What’s a Bitcoin Improvement Proposal? 

Bitcoin was the world’s first cryptocurrency. It has completely changed how the world views finance while at the same time rallying an entire industry of cryptocurrencies. Bitcoin holds (and probably will always hold) a very special place in cryptoverse. However, just like any new tech, Bitcoin has its growing pains. For this reason, Bitcoin developers are always coming up with improvement proposals for the network to make it even better. 

However, this is not done in a random fashion. Nine years ago, a man named Amir Taaki wisely came up with what’s known as a Bitcoin Improvement Proposal (BIP) that anyone should follow to suggest changes to the Bitcoin ecosystem. This article looks at what exactly a BIP is and what it entails. 

What’s a Bitcoin Improvement Proposal?

A Bitcoin Improvement Proposal (BIP) is an established standard in which people can suggest changes to the Bitcoin protocol. Such a proposed change can be about any aspect, including soft forks, improved recovery phrase formats, the peer-to-peer layer, and so on. Usually, BIPs are made by crypto developers or generally people with advanced computing skills. 

A BIP is created by individuals who believe that they have an idea that could vastly improve the Bitcoin ecosystem. The first-ever BIP – labeled BIP 0001 was made by a person named Amir Taaki. In essence, BIP 0001 was the groundwork for future BIPs – including how they would work and the expected standards. Not every change to the Bitcoin protocol affects it, and not every change requires a BIP.  

How a BIP is Approved or Rejected

Every BIP is initially a draft submitted by one or more individuals. However, before it is a draft, it has usually undergone rounds of discussions on the Bitcoin development mailing list, Bitcoin social forums, etc. 

When the BIP author receives feedback from the community, they can change or improve it based on that feedback. If it’s a major protocol change, it will first have to be implemented as a trial. If community members reach a consensus on the proposal, it proceeds to implementation. The final stage will involve developers implementing the new BIP code and network participants choosing to download it. 

Types of BIPs

BIPs are usually recognized as belonging to three categories. Let’s take a look at each: 

#1. Standards Track BIPs

These are BIPs that seek to improve the Bitcoin protocol, things such as blocks, scaling solutions, verifying transactions, etc. As you can see, standard track BIPs really get to the core of Bitcoin and its underlying infrastructure. Due to this, if the community accepts these types of BIPs they can have a permanent/major impact on the cryptocurrency. However, thanks to Bitcoin being already solid and ‘mainstream,’ it can be tough for a standard track BIP to be implemented and put into motion. 

#2. Information BIP

These types of BIPs are mainly targeted at issues like the design of the protocol and general guidelines. What this means is that information BIPs do not target the heart of Bitcoin and its underlying tech. However, these BIPs are still important and can be helpful to the Bitcoin ecosystem. 

#3. Process BIPs 

As the name suggests, process BIPs are suggestions to the BIP process. In this way, process BIPs are a lot like Standards Track BIPs, except they apply off-chain. In short, process BIPs apply to issues related to bitcoin but not directly involved in the underlying tech and code of Bitcoin. 

Structure of a BIP

If you’d like to submit a BIP, you’re expected to follow a certain structure to do so. The structure consists of the following: 

#1. Preamble

A preamble is the first section of a BIP. Here, the author includes details such as the BIP number, title, metadata of the BIP, and the author’s contact information and identity (s). Info in this section is important because it makes the BIP organized and easier to be shared or looked up. 

#2. Abstract

This is a description of the BIP, and it’s usually 200 words or less. In the abstract, the author distillates the proposal in simple and brief terms. The essence of the abstract is for people to easily understand what your BIP is about and what the core message is. 

#3. Copyright

In this section, the author includes any relevant copyright info for the proposal. This could be publication licenses, and so on. If the author uses license info, they must detail it here and see to it that all legal parameters are adhered to. 

#4. Specification

In this section, the author talks about any new features or ideas proposing to the Bitcoin protocol. Here, readers should have their questions answered about what your idea is and why they should care. Indeed, the specification section is the flesh of your BIP. As such, the author needs to write this section so that it’s easy to understand and be taken seriously. 

#5. Motivation

This is where an author describes why their idea is an improvement to Bitcoin. Here, you need to talk about why the existing solution is not good enough and how your idea can improve it. This doesn’t mean that the majority of the community will be on board. Still, it’s in this section why you make your case for better for worse. Even before you think about coming up with a VIP, ensure your idea is persuasive enough. Otherwise, your BIP may not go anywhere. 

#6. Rationale

This section is in some ways similar to the above section. But instead of talking about why the idea is important, you explain how you reached the decision to create your own BIP. This could be the decisions you made concerning the design, how you pushed through perceived rejections to the proposal, and so on. In short, the rationale section is where you preemptively respond to your critics way before they get a chance to criticize your idea. 

#7. Backward compatibility

In this section, you inform readers whether your BIP is backward compatible. If it’s not, you should provide details about the incompatibilities, including how severe they are and how you plan to deal with them. 

#8. Reference implementation

In this section, the author should provide an example of the idea that other developers could implement in the future. In other words, this is where you demonstrate your idea and showcase it to the community. If you don’t have a completed example, then your idea won’t cut it. After all, people need to see the idea of working in real life and not have to imagine it. This means it’s good to have a reference implementation before you begin working on your BIP.

The Big Picture 

BIPs can be extremely valuable to the Bitcoin ecosystem, especially as Bitcoin continues to rise in value. If positive changes are made to the protocol, it could make the world’s most popular cryptocurrency even stronger. The reverse is true. 

Much of the BIPs submitted so far have been about scaling Bitcoin. Some of them have led to contentious disagreements within the community, leading to contentious hard forks such as Bitcoin Cash and Bitcoin Gold. Others like SegWit2x have been turned down by a majority of the community. However, others, like SegWit and The Lightning Network, saw the green light of the community. Such updates could prove very key for the Bitcoin scaling issue.

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Cryptocurrencies

Monero Reaches 2-Year High, Is It the Next-Best Alternative?

Recently (Oct 2020), Monero hit $139 – its 2-year high, and investors are expressing renewed confidence in this crypto. What’s even more inspiring is the fact that the cryptocurrency has maintained a consistent sideways or upward – but not downward – trend since then. Before the 2017 crypto bull run, Monero always shied from surpassing the $1 mark. But the boom seemed to have inspired this crypto to take on the major players. 

On the other hand, investors are all over the place scrambling for Bitcoin, partly why it is currently shining in glory. While most of those jumping onto the Bitcoin frenzy might be a bit late to the fiesta, the case could be different for Monero investors. Could it be the next-best alternative to Bitcoin at the moment?

Let’s take a closer look at this crypto and determine whether it can give Bitcoin a run for its money.

What Makes Monero Special?

Monero was invented in 2014 with one goal: to facilitate private and anonymous transactions. But Bitcoin was already doing that! Well, not quite. Bitcoin was thought to be anonymous, but that is not the case. With the Bitcoin blockchain (and many others), it is possible to trace the transaction’s origin because the blockchain is transparent. 

Monero, on the other hand, provides a high level of obscurity for transactions. We can’t say that it is impossible or not to tell the source of an XMR transaction, but as of now, that possibility remains a matter of conjecture. 

In this age, users seem to cherish privacy, even when they are doing nothing illegal. As Monero positions itself as one of the most private and anonymous cryptocurrencies, it is gradually becoming a darling to many. 

Other than providing unmatched privacy and anonymity, Monero is also cheap, fast, and easy to use – qualities that appeal to both neophytes and seasoned users.  

The Sudden Interest in Monero

It’s not only speculators and investors who have expressed increasing interest in Monero – hackers and regulators are also realigning their strategies around this crypto. For instance, Sodinokibi, a ransomware (criminal hacking) group, recently announced that they would start taking ransom in Monero instead of Bitcoin. They added that their decision to abandon Bitcoin was based on privacy issues, which Monero does not face. 

If you follow dark web affairs, you know that there is a close relationship between cryptocurrency adoption for illegal activities and the growth of Monero. This can be evidenced by Bitcoin’s momentary decline in 2013 after Silk Road, one of the largest black markets, was seized by the FBI. If we draw parallels between BTC’s adoption in the black market and Monero’s interest in the underworld, there can be no denying that Monero will soon become a much sought-after gem. 

Authorities are also showing interest in the crypto, albeit not for investment purposes. In September, the US Internal Revenue Service announced that it’s giving out a bountiful reward to anyone who can help them trace the source of Monero transactions. Europol also reported that Monero is fast rising as the standard for dark web transactions.

These events suggest that XMR’s adoption is likely to increase. With increased adoption comes increased volumes, market capitalization, and prices. 

Monero’s Historical Performance

The coin was launched in 2014, exchanging at about $2 or 0.005 BTC. After struggling for several years, the 2017 crypto bull finally came to its rescue, raising its value to over $400 at some point. However, XMR’s performance against BTC had started rallying way before the crypto boom. Since mid-2016, XMR had already started gaining against Bitcoin. This was a noteworthy trend since XMR has largely maintained its growth against BTC.

The crypto has also grown its 24-hour trading volumes tremendously. Just a year ago, Monero seemed to struggle to reach $100 million in daily transactions. Even during the 2018 peak when it was fetching $400 in XMR/USD trades, daily volumes hardly surpassed $200 million. At the time of writing, XRM was exchanging at only $116, but the 24-hour volume was hitting over $2 billion. In other words, 24-hour volumes have increased 20-fold in 12 months. There is no doubt investors are increasingly trying out this alternative. 

XMR/USD or XMR/BTC?

If you are convinced that Monero is a worthy alternative to Bitcoin, there’s one crucial decision you need to make – and that is whether to trade XRM with Bitcoin or with USD. After all, most exchanges that list XMR offer both pairs. It is important to evaluate this decision because XMR’s relationship with BTC and USD hasn’t been linear – there are times when the crypto has fetched more BTC than the equivalent in USD. In fact, this has been the case during most of its lifetime, except for the last few weeks where Bitcoin has grabbed headlines for its performance. 

Based on the historical exchange rates, it would be more profitable to exchange XMR with BTC when selling than with USD. However, owing to the trend reversal in the last few weeks of Bitcoin’s glory, it is important to watch how the curve extends. 

Concerns You Might Consider

While Monero is generally promising, there are two major concerns you might want to evaluate before picking it as an alternative to Bitcoin. 

#1: It might not be available on your favorite exchange – Due to the crypto’s high level of privacy, some major exchanges do not list it. This is especially true for exchanges that seek to comply with regulators. As we have seen, Monero is increasingly becoming popular in the underground economy, and reputable exchanges might want to distance themselves from it.

#2: Monero is widely associated with facilitating illegal trade – When you mention that you are a Monero, Zcash, or Dash investor, chances are you might be mistaken for being part of the dark web economy. Well, this won’t dampen your chances of successful crypto investment, but it’s worth keeping in mind all the same.

Final Thoughts

Monero is one of the fast-rising altcoins besides the fact that it has had a good track record in financial performance. In 2020, the coin has grabbed regulators’ attention due to its increased adoption in the underground economy. At the same time, the coin has consistently gained against both the USD and BTC throughout the year, save for the last few weeks where it has lost slightly against BTC. Also noteworthy is that the crypto’s daily volume has increased more than 20 times since the beginning of the year – signaling its increasing adoption. Although there might be a few concerns regarding the use of this cryptocurrency for covert activities, there is no denying it is a worthy alternative to Bitcoin.

Categories
Crypto Daily Topic Cryptocurrencies

How to Buy Bitcoin with a Credit/Debit Card

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

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

How You Can Buy BTC with a Credit Card

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

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

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

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

Best Places to Buy BTC with a Credit Card

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

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

#1. Coinmama

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

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

#2. Coinbase

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

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

#3. Bitpanda

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

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

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

#4. CEX.io

CEX.io is one of the earliest cryptocurrency exchanges to exist. Even so, it has never moved its operations beyond Europe, some countries in South America, and some states in the US. It is still a great place to buy BTC using your card if you are from any of these regions

CEX.io boasts of unmatched security and trust. The exchange is registered in the US as a Money Services Business. In the UK, it is incorporated as a private limited company. CEX.io is also PCI-DSS compliant. PCI-DSS is the global security standard for card payment providers. Due to the company’s focus on security and compliance, user experience is adversely affected. For instance, transaction verifications can take up to 30 minutes. 

Security/ Safety

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

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

Final Thoughts

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

Categories
Crypto Daily Topic Forex Daily Topic Forex Videos

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


Position Sizing. Drawdown- The dark side of Trade

 

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

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

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

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

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

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

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

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

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

1 mini-lot size

The corresponding drawdown curve  is shown below:

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

Let’s use now one lot

And the corresponding max drawdown curve is

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

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

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

Categories
Cryptocurrencies

Indicators DeFi Investors need To Know: Number 4 Is A must Have.

Decentralized finance (Defi) is one of the relatively new blockchain applications, and it can be confusing for newcomer investors. Be that as it may, the pace at which the space is growing leaves no time to ‘wait and see.’ DeFi is evolving crazy fast, and new metrics are being invented to help investors weigh their options. Given the novelty of the subject, there are no widely-accepted standards yet. Still, there are some common indicators that we can use to judge whether one DeFi protocol is better than the next.  

This article looks at some of the top metrics that you can use to compare DeFi protocols.

#1. Total Value Locked (TVL) 

This is perhaps the most-common indicator when it comes to evaluating DeFi protocols. TVL refers to the total of funds locked in a given protocol. An easier way to understand it is to think of it as the dollar value of all tokens held in a smart contract for a given DeFi project. 

As an investor, you can know the general interest in a particular DeFi by just looking at its TVL. It is equally useful when evaluating the market size of different projects. In crypto, TVL would be the equivalent of market capitalization. 

TVL is simple yet confusing. If a user deposits 10 BTC then borrows BTC 5 and thereafter deposits back the 5 BTC, the market would report 100 BTC. But, there have been deposits amounting to 140 BTC. That’s part of the confusion that’s associated with this metric. 

TVL was created by DeFi Pulse, the world’s leading DeFi resource. Although liquidity providers usually fund DeFi projects in crypto, TVL is measured in dollars. As pointed above, there has been confusion abounds regarding the accuracy of TVL. However, as initially mentioned, DeFi and all its metrics are still evolving. Until such a time when there will be general agreement on these indicators, TVL remains a useful metric for evaluating the investment potential of a DeFi project.

#2. Token Supply

Token supply tells investors how many tokens are ‘floating’ in an exchange. When there’s a high number of tokens floating in an exchange, token holders are likely letting go of their tokens, which creates an increase in the supply. This could be happening for the same reasons it happens in other money markets. For example, investors could be fearing that the market is getting riskier. 

A high volume of token supply could result from a whale selling off their shares in some instances. The same phenomenon could also be observed when investors use their holdings as collateral for a margin or futures trade. As such, while the token supply on exchanges can tip you off of an impending voluminous sale, it might not be as straightforward. Crypto is typically traded on centralized exchanges, although this trend is changing in favor of decentralized exchanges. The advantage of centralized exchanges is that they are usually able to maintain stronger liquidity. 

#3. Changes in Token Balances

Tracking token supply on exchanges is a savvy move. And as a trader, you can complement this by finding out how balances are changing. Volume tracking is a bit static and does not accurately picture a market’s current financial trend. Evaluating the changes in token balances will likely give you a better picture of what is happening.

Typically, a large change in token balances tells you that the market is currently volatile. For example, if large holders are accruing tokens, you might notice large withdrawals from exchanges. As is the case with the other metrics discussed above, treat this only as a guide.

#4. Unique Address Count

Unique address count is the number of addresses that are holding a given token. A high number of addresses likely means that there is a high number of users on that market. By contrast, if you only see a relatively small number of addresses, it could be that the DeFi protocol has yet to gain widespread adoption. 

Since the number of unique addresses is a static metric, it would be more meaningful to track the new addresses’ rate. This will give you a better picture of how fast users are joining the DeFi protocol. And just like how it works with bull runs in the money markets, the best time to join is when the adoption rate is high. This is the time when you would typically expect the fastest growth in your investment.

Beware, though: one user could create multiple addresses and distribute their tokens to all of them. Therefore, this indicator should also be used merely as a guide, and better yet, be used in combination with other indicators.

#5. Inflation

Inflation is the rate at which new tokens are being pumped into the ecosystem – just like with economic inflation. Usually, limited supply alludes to the rarity of tokens and hence a higher value. If new tokens are being minted easily and fast, existing ones will be devalued at the same rate. 

However, it’s advisable to approach this indicator with some caution. In economics, rising inflation encourages people to spend and thus promotes economic growth. The same phenomenon can be observed in DeFi, where an increasing supply of tokens can boost investor sentiment and actually result in bullish activity. In the same way, limited supply could only be temporary. Thus, it would be best if you did not conflate token scarcity with value. 

#6.Price-to-Sales Ratio

The price-to-sales ratio (P/S ratio) is used to assess whether an asset is undervalued or overvalued. In traditional finance, this ratio is obtained by dividing a company’s revenue by its stock price. In DeFi, it’s calculated by dividing the protocol’s market capitalization by its revenue. Generally, a relatively high value means that the DeFi project could be overvalued. 

#7. Non-Speculative Usage

Non-speculative usage refers to the usefulness of a token beyond mere hype. When you’re evaluating a token’s value, it is important to check whether there is a solid project behind the token. It might be difficult to track whether token purchases are based on speculation or people are actually buying them for specific uses. 

Final Thoughts

DeFi is a fast-rising financial tech that promises investors new and exciting opportunities. As a DeFi investor, it helps to be able to analyze and compare different protocols. The above indicators can steer investors in the right direction when it comes to evaluating different DeFi options. Always analyze each DeFi protocol by its merits or lack of them, and most importantly, do your own research.

Categories
Crypto Daily Topic Forex Daily Topic Position-sizing Guide

Forex Academy’s Guide to Position Size

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

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

The Golden rules of trading

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

The dark side of the trade

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

The Gamblers Fallacy 

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

The Advantage!

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

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

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

Equity Calculation Models

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

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

The Percent Risk Model

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

The Kelly Criterion

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

Optimal fixed fraction trading

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

Optimal f properties

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

Market’s money

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

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

Scaling in and out

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

System Quality and Max Position Size

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

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

 Our procedure was to create a Monte Carlo resampling of the synthetic results, which simulated 10 thousand years of trading history on each system.  

Since a trading strategy or system is a mix between the trading logic and the trader’s discipline and experience, we can estimate that the overall outcome results from the interaction of the logic and the treader. Thus, we can accurately associate a lower SQN with lowing experienced traders and higher SQN to more professional traders. The study’s concussions suggest a limit of 0.5 percent risk on newbies, whereas more experienced traders could boost their trading risk to an overall 4.5%.

Two-tier Optimal f Positioning

After this journey, we have understood that Using Ralf Vince’s optimal f position sizing method means maximally growing a portfolio. Still, the risk of a 95% drawdown makes it unbearable for any human being. Only non-sentient robots can withstand such heavy drops. In Position sizing XII- Two-tier Optimal f, we analyzed the growth speed of a 1% risk size, and we compare it with the Optimal f. We were interested in the average time to reach a 10X final capital. We saw that on a system with 65.5% winners and a profit factor of 2 ( average Reward/risk ratio of 1.1), using 1 percent risk, it would take650 days ( about two years) on average, whereas, using optimal f sizes, this growth was reached in 42 days, less than one-tenth of the time!.

The two-tier Optimal f positioning method uses the boosted supply model, and is a compromise between maximal growth and risk. The main objectives were to preserve the initial capital while maintaining the Optimal f method’s growth characteristics as much as possible.

The two-tier optimal f creates two pockets in the trading account. 

  1. The first pocket, representing 25% of the total trading capital, will be employed for the optimal f method. The rest, 75%, will use the conservative model of the 1 percent model.
  2. After a determined goal ( 2X, 5X, 10X, 20X), the account is rebalanced and re-split to begin a new cycle.

In Position sizing XII- Two-tier Optimal f part II, we presented the Python code to accurately test the approach using Monte Carlo resampling, creating 10,000 years of trading history.

 The results obtained proved that this methodology preserved the initial capital. This feat is quite significant because it shows the trader will dispose of unlimited trials without blowing out his account. Since the odds of ending in the lowest possible scenario are very low, there is almost the certainty of extremely fast growths.

Finally, we also analyzed other mixes in the two-tier model, using Optf / 10, Optf/5, and Optf/2 instead of 1%, with goals of 10X growth to rebalance. These showed extraordinary results as well while preserving the initial capital. B.

Drawdowns

The trader should also consider the drawdowns involved before deciding which strategy best fit his tastes because, while this methodology lowers it, in some cases, it goes, on average, beyond 60%. We have found that the best balance between growth and risk was the combination of 75% Optf/10 and 25% Optf, which gave an average final capital of $21.775 million with an average drawdown of 37%.

To profit from this methodology, the trader must ensure the long-term profitability of his system. Secondly, he must perform a Monte Carlo analysis to find the lowest optimal f value. Finally, he should create an adequate spreadsheet to follow the plan.

Final words

After reading all this, we hope you know the importance of position sizing for your success goals as a trader.

One caveat: We have left some topics out, such as martingale methods, which many traders use and are the main cause of account blown out. Please adhere to the philosophy that position sizing should be thought of as a tool to reach your goals and handle your risk and drawdowns. As shown in The Dark Side of the trade, position sizing should be separated from the previous trades’ results.

Categories
Crypto Daily Topic

Who is Satoshi Nakamoto (Creator of Bitcoin)? 

There’s no bigger mystery in the crypto world than the one of Bitcoin’s creator’s true identity. Satoshi Nakamoto is the pseudonym used by Bitcoin’s creator(s). More than 10 years after Bitcoin, Satoshi’s identity remains shrouded in mystery. 

The Bitcoin community is yet even to know if Satoshi is one person or a group of people. What they know is that in 2008, Satoshi published a paper: “Bitcoin: A Peer-to-Peer Electronic Cash System,” that completely changed finance as we know it. 

Nevertheless, that hasn’t stopped an active search for the mysterious figure. Several Satoshi ‘suspects’ have been unveiled, and not without controversy. Let’s look at some of the people widely theorized to be Satoshi. 

#1. Dorian Nakamoto

Dorian Prentice Satoshi Nakamoto is a Japanese-American engineer suspected of being Satoshi by Newsweek writer Leah McGrath Goodman back in 2014. At the time, McGrath published an ‘expose’: “The Face Behind Bitcoin.” McGrath had established that Nakamoto had previously worked as a systems engineer on classified projects for the US government and a computer engineer for financial services companies. 

McGrath said Nakamoto had let slip that he was the founder of Bitcoin. She alleged that during a face-to-face interview with him, he’d said about the currency: “I am no longer involved in that, and I cannot discuss it,” adding, “It’s been turned over to other people. They are in charge of it now. I no longer have any connection.” 

However, when he’d said he’s no longer involved with that, he’d meant his work with classified military projects years ago. Both in The Associated Press and on a Reddit Ask Me Anything, he said that he’d misinterpreted McGrath’s question as being related to that work. 

The “discovery” of Dorian Nakamoto was particularly mired in controversy. The Bitcoin community was not pleased with the “hit-job” type of piece – complete with a picture of his house – that McGrath wrote about him.  

The community also took notice of a message published for the first time in years on Nakamoto’s P2P Foundation site, saying, “I am not Dorian Nakamoto.” 

#2. Adam Back 

Adam Back is the CEO of blockchain company Blockstream. Some sections of the Bitcoin community suspect he’s Satoshi Nakamoto thanks to a YouTube video called “Unmasking Satoshi Nakamoto” Posted by the channel “Barely Sociable.” The video talks about several clues about why Back may be Satoshi Nakamoto. 

One of those reasons is that he was describing the technology underlying Bitcoin as far back as 1998. He also kind of disappeared from the public when Satoshi was actively involved in the project. Barely Sociable also pointed out that both Back and Satoshi use double spacing in their words, and they use British English spelling. The video also mentioned the possibility that Back can always leverage plausible deniability about the claim. After the video was published, Back engaged in a back and forth with Barely Sociable on Twitter. At the time of writing, the YouTube video has 548,592 views on Twitter. 

#3. Wei Dai 

Wei Dai is a computer engineer and cryptographer. He’s the creator of the b-money currency system and a fixture in the digital currency community ecosystem. On August 23, 2008, Satoshi Nakamoto wrote to Dai acknowledging his contribution to Bitcoin:” I was very interested to read your b-money page. I’m getting ready to release a paper that expands on your ideas into a complete working system.” 

Most of the evidence linking Dai to Bitcoin is substantial, though, and there’s no smoking gun evidence to prove that he really is Satoshi. Such evidence is based on the fact that Dai has the ability to create such a project, as well as his intensely private manner that is akin to Satoshi’s.

Also, if Dai were Satoshi, that means he’d have to have been playing a “double agent” role writing to himself and communicating with himself. This is highly unlikely.

#4. Hal Finney 

Hal Finney is an American cryptography pioneer who died of ALS in 2014. In the same year, Forbes journalist Andy Greenberg wrote an article on Hal Finney, highlighting that he was not only Dorian Nakamoto’s neighbor, but also a pioneer in the cypherpunk and cryptography space. Not only that, Finney had been the first-ever recipient of a BTC transaction from Satoshi. 

Greenberg then worked with writing analysis firm Juola & Associates and asked them to compare Finney’s writing with that of Satoshi. Apparently, they found his writing was closer to Satoshi’s than other candidates submitted to Newsweek, Fast Company, and the New Yorker. But they also found Satoshi’s emails to Finney more closely resembled the style in Bitcoin’s original white paper as compared to Finney’s emails. 

Greenberg theorized that Finney could have been a ghostwriter for Nakamoto or has used his neighbor Dorian Nakamoto as cover. Finney denied being Satoshi. After Greenberg met Finney and saw the email exchanges between them and his and Bitcoin’s wallet history, he concluded that he was telling the truth. 

#5. Craig Wright 

Craig Wright is an Australian computer scientist and techpreneur. On Dec 8, 2015, Wired ran an article by Andy Greenberg and Gwern Branwen describing an Australian academician called Craig Stephen Wright who “either invented bitcoin or is a brilliant hoaxer who very badly wants us to believe he did.” 

The same day, Gizmodo published a story featuring documents allegedly obtained by a hacker who breached or “breached” Wright’s email accounts, claiming that Satoshi Nakamoto was a joint pseudonym for Craig Wright and his longtime friend, Dave Kleiman. Kleiman was a computer forensics expert who died in mysterious circumstances in 2013.

Following the article, Wright quickly disappeared from the web for several months only to resurface on May 2, 2016, and declare that he was Bitcoin’s creator. He also wrote an article apologizing for taking the original private approach and a refusal to provide proof of access to one of Bitcoin’s earliest keys. Several publications have rubbished the claims that Wright is Satoshi. He’s also currently embroiled in litigation with Dave Kleiman’s estate. The lawsuit claims Wright defrauded Kleiman of millions of worth of Bitcoin. 

#6. Nick Szabo 

Nick Szabo is a computer scientist, legal and cryptography scholar who’s widely credited for pioneering the concept of smart contracts in the ’90s. In 2008, he developed a decentralized currency – Bit Gold, which he described as “a protocol whereby unforgeable costly bits could be created online with minimal dependence on trusted third parties.” This is in agreement with Bitcoin, in which bits produced by a distributed network of computers worldwide independently verify transactions.

Writer Dominic Frisby floated the idea that Nick Szabo is Satoshi in his book “Bitcoin: The Future of Money?” Frisby talked to a stylometric analyst who apparently concluded that Szabo’s writing style is similar to Satoshi’s. His other ‘proof’ was that both Szabo and Satoshi reference legendary Austrian economist Carl Menger. Frisby also established Szabo had worked for DigiCash, a cryptographic electric money attempt in the early ’90s. According to Frisby, all these clues alluded to Szabo being Satoshi. 

However, Szabo has repeatedly refuted the idea that he’s Satoshi, saying to Frisby in one of their correspondences: “Thanks for letting me know. I’m afraid you got it wrong doxing me a Satoshi, but I’m used to it.” 

Final Thoughts

The fervor behind Bitcoin’s creator is understandable. After all, the currency is not just digital money – it’s a movement – one that has shaken the very core of finance. Some of the people mentioned in the list are known for their pioneering work that helped lay the foundation of Bitcoin. Others have been active in the currency’s development from the beginning, while others appear to ride on the coin’s popularity for whatever ends. But if you think about it, the mystery surrounding Bitcoin is partly behind its wild success and possibly its ‘untouchable’ status. The Bitcoin community and, indeed, the world should be happy that we have Bitcoin and not be so fixated on its creator. 

Categories
Cryptocurrencies

Buying Bitcoin with Skrill: Don’t Try Before Reading This!

Bitcoin is the world’s most popular currency. So it’s not a surprise that most payment platforms worth their salt support the currency. One of these platforms is Skrill, the London-headquartered money transfer company that’s now one of the most popular globally. 

This article looks at how you can purchase Bitcoin via Skrill. We’ll dive briefly into what Skrill is, whether you should consider using it, and the best places to buy BTC with Skrill. 

What is Skrill?

Skrill is an international payment platform through which users can transfer, send, and receive money from across the globe. It sets itself apart from other money transfer companies such as PayPal through low-cost transactions. You can open a Skrill account in any of the 30+ supported currencies. Once you have an account, you can add other currencies if you’d like to receive payments in different currencies. Skrill is widely accepted by merchants worldwide, including cryptocurrency exchanges, which is why you need to know how you can purchase Bitcoin using Skrill. 

Should You Buy Bitcoin with Skrill?

Wondering whether it’s worth buying Bitcoin from Skrill? Apart from being just another option (the more options you have, the better), Skrill can save you some money. Additionally, you can buy Bitcoin directly from your Skrill account with your local Fiat currency. There are many ways you can fund your Skrill account to facilitate a crypto purchase. Skrill also offers convenience and ease of use through its mobile app. Finally, crypto purchases are instant, and your account is credited with the balance within seconds. 

With that, let’s take a look at where and how you can do it so. 

Best Places to Buy Bitcoin with Skrill

#1. Skrill

Skrill itself is one of the best places where you can buy BTC. Buying Bitcoin from Skrill is incredibly easy and straightforward. If you have an account, you will see the option when you log in. The interface is particularly user-friendly – simple, elegant, and minimally designed. 

To buy BTC from your Skrill account, you will need to fund it first. The quickest way to do so is to use your credit card. Whichever card you’re using, funding your account will cost you around 2.5% of the transaction value. Most of the major cards are accepted. 

Apart from Bitcoin, you can also buy other major cryptos on the platform. This is especially important if you’d like to diversify your crypto investment portfolio. As a bonus, you can also sell crypto from within your Skrill account. So buying BTC on Skrill is not only highly convenient, but it’s also option rich. 

#2. Paxful

Paxful is a peer-to-peer (P2P) Bitcoin marketplace launched in 2015. The platform allows you to buy and sell Bitcoin to other users. Like all other P2P marketplaces, users can browse through different seller profiles and select the one that offers the best rates and accepts Skrill payments.

Whether you have an account or not, Paxful allows you to filter sellers by country, accepted payment methods, and so on. When you select a seller, the platform gives you more details regarding the offer and the seller. You can even see the seller’s rate in comparison to the average market rates and determine whether their offer is fair. If your Skrill account is already funded, buying Bitcoin from Paxful is super easy. You will only need to check out with Skrill and complete the easy steps that follow. 

Best of all, Paxful summarizes many options for you, allowing you to quickly and simply purchase Bitcoin. 

#3. Capital.com

Capital.com is a UK-based crypto broker that allows users to buy and sell most of the major cryptocurrencies. Since it’s a broker, you’ll be either buying or selling directly to the company. If you are conscious of the risks of buying crypto from a P2P exchange, Capital.com is a great go-to option. 

#4. eToro

eToro is one of the biggest crypto exchanges, and it supports buying Bitcoin using Skrill. eToro is a social trading platform, which means it allows you to copy-trade. The platform is designed mostly for experienced traders. Nevertheless, its copy trading feature allows novices to take part.

When it comes to buying Bitcoin, eToro is one of the most sophisticated trading platforms. It presents multiple dashboards offering a preview of the most important BTC indicators, real-time prices included. Setting up an account is a little cumbersome as it requires you to provide numerous details. However, once all is set up, the rest of the purchase process is relatively easy. 

#5. Coingate

Coingate is a cryptocurrency payment gateway that allows businesses across the globe to accept Bitcoin. Crypto traders can also buy and sell their digital assets on the platform without making any deposit. When you choose to buy Bitcoin using Skrill, you’ll be able to make an instant payment without the need for registration or verification, as long as you’re verified on the platform. Coingate’s speed and ease of use make it an ideal option for users who want to buy Bitcoin quickly and without hassle. 

Coingate is sometimes criticized for offering poor rates and unsatisfactory customer service. However, user experience on the platform is generally smooth, and you’re unlikely to face challenges buying Bitcoin or paying with your Skrill account. 

#6. Bitpanda

Bitpanda is a world-famous crypto exchange that allows users to buy and sell various digital assets with the convenience of mobile and desktop options. Bitpanda has made buying/selling Bitcoin as easy as ABC. To buy Bitcoin with Skrill on Bitpanda, you need only follow three steps:

  • Create a Bitpanda account or log in if you have an existing one.
  • Verify your identity and fund your Bitpanda wallet. When depositing funds, you will be directed to select the source of funds, where you’ll choose Skrill.
  • Proceed to buy Bitcoin.

The difference between Bitpanda and Coingate is that with Coingate, you have to fund your Coingate account first. However, the whole buying experience is fast and user-friendly. 

Final Thoughts

Skrill is one of the most recognized global money transfer platforms. The platform attracts users with its low-cost money transfer offerings. When it comes to buying Bitcoin with Skrill, users get various options ranging from Skrill itself to the numerous exchanges that accept Skrill payments. If you’re using Skrill on a different platform, you need to evaluate the platform’s ease of use, transaction fees, and available withdrawal options. As for Skrill itself, Bitcoin purchases are simple and instant, which you should take advantage of.

Categories
Crypto Daily Topic Forex Daily Topic

How to Trade Forex Anonymously with Bitcoin

Anonymous trading used to be a reserve for high-profile investors. But with the increasing acceptance of crypto in forex trading, anyone can trade anonymously now. There are both advantages and limitations to trading anonymously. If you choose to trade forex anonymously, you could use Bitcoin or any altcoin accepted by your broker. 

In this article, we’ll look at what it means to trade anonymously, why you would do it, and, most importantly, how to use Bitcoin in this endeavor.

KYC-Based vs. Anonymous Forex Trading

Unlike crypto trading, forex investment is a highly-regulated industry. For this reason, regulators require forex brokers to conduct extensive know-your-customer (KYC) processes before allowing traders in. Traditionally, exchanges have had no provision for anonymity. However, over time, many have switched to anonymous/hybrid trading practices. 

So, what is anonymous trading? Anonymous trading happens when investors choose to conceal their identity, although their trading activity remains visible in the order book. Usually, an investor will choose between trading on an anonymous (national) exchange or opt for the more private dark pools. 

Anonymous brokerage firms are still regulated and thus do not provide complete anonymity – regulators can still access personal information about a particular trader and their activity. On the other hand, dark pools are private trading platforms that are generally out of the investing public’s reach. They can be registered and operate legally, like conventional brokerages. 

Whether you’re trading in an open brokerage or a dark pool, crypto is particularly useful in keeping transactions identityless. 

With that, let’s find out why you would consider trading anonymously. 

Why Trade Forex Anonymously?

Motivations for trading anonymously may differ slightly between investors. However, the following are common reasons. 

  • Protecting identity – For personal reasons, you might opt to remain an unknown investor on the market. Sometimes one just desires privacy – be it to circumvent some restrictions, keep away stalkers, etc.
  • Protecting your strategy – If you’re a particularly savvy trader, your tricks will always be at risk of being copied. But if you trade with your identity concealed, you’re making it difficult for them to join the dots that make up your strategy. 
  • To conceal your intention – Crypto markets are sentimental, and if traders see you buying or selling in large volumes, prices can move, sometimes to your disadvantage. In such a case, buying or selling anonymously allows speculation to shape the course of price movements.

Using Bitcoin to Trade Forex Anonymously 

It’s very possible to trade forex using crypto. And while you can use any crypto to trade forex (as long as your broker allows it), Bitcoin has some advantages. Obviously, the main one is its wide acceptability. BTC’s volatility also makes it a suitable currency for investment. That said, this is how you can use Bitcoin to trade forex. 

#1. Get Bitcoin – Naturally, the first step is to acquire Bitcoin. For this, you will need to visit an exchange (not a forex exchange, though). Familiarize yourself with the likes of Coinbase, Binance, and Changelly. 

#2. Find a good broker – Not all forex brokers accept Bitcoin. Those that do may be referred to as Bitcoin deposit forex brokers. 

#3: Deposit Bitcoin with the broker and provide them with the finer details of the trade they should execute.

Of course, this is a high-level overview of the process. There are intricacies involved, such as how to evaluate brokers and the risks and the benefits of using Bitcoin to trade crypto that you need to be aware of. Let’s take a look at these below: 

Top 10 Bitcoin Deposit Forex Brokers

The list of Bitcoin deposit forex brokers is growing by the day. Some of the truly tried-and-tested include the following. Links go to a full review of the broker, where available.

#1. IC Markets – This broker is regulated by the Australian Securities and Investments Commission. They accept deposits from $200 in any of the supported currencies, including BTC. With IC Markets, you can get a leverage of up to 500:1. IC Markets allows its customers to trade Forex, Metals, indices, bonds, stocks, and digital currencies.

#2. EagleFX – EagleFX is a beginner-friendly broker with whom you can trade from as low as $10. The platform offers fast account setup and supports over 55 currencies and 32 digital assets. Withdrawals are also pretty fast. With leverage of 1:500, experienced traders can equally benefit from the platform. One of the things making EagleFX stand out is that it appeals to all levels of traders – from beginners to seasoned investors.

#3. CedarFX – CedarFX is a rather interesting option, as it offers zero commission trading with very tight spreads. This broker offers traders six asset classes: digital assets, stocks, indices, metals, futures, and commodities. When trading with CedarFX, the best part is that investors get to choose from a wide array of options. CedarFX’s leverage goes up to 1:500 and also accepts a minimum $10 deposit.

#4. FX Choice – Just like IC Markets, FX Choice is an electronic communication network (ECN). They accept deposits from $100 in a range of crypto and fiat currencies. The broker offers maximum leverage of 200:1 and a variety of Forex pairs, metals, indices, and digital assets.

#5. Longhorn FX – This broker seeks to attract beginner investors with low minimum deposits starting from $10. You can get leverage up to 1:500 to trade with over 55 currency pairs. Withdrawals are fast and easy, which increases its appeal. 

#6. Cryptorocket – This broker allows investors to trade various instruments that include crypto, commodities, stocks, and forex. Leverage of up to 1:500 is possible, and it can be applied to trade some 35 crypto pairs, 55 fiat currency pairs, among other asset classes. The broker features institutional-grade liquidity that guarantees investors competitive pricing. Also, Cryptorocket uses straight-through processing – so you can be sure there will be no price manipulation.

#7. Think Markets – Think Markets is a market maker non-dealing desk kind of broker. You can start with any amount for your deposit, which is encouraging for new users. It is regulated by the Australian Securities and Investments Commission (AU), the Financial Conduct Authority (UK), and the Financial Sector Conduct Authority (ZA). 

#8. FXTM – FXTM is an ECN market maker regulated by the Financial Services Commission of Mauritius. You can start trading from a minimum of $5 (or its equivalent in any of the supported currencies). The broker offers maximum leverage of 1:1000.

#9. HotForex – HotForex is also a market maker that accepts deposits from $5. It is regulated by the Dubai Financial Services Authority and accepts several base currencies. The maximum leverage you can get is 1:1000. 

#10 Hugosway – Hugosway is a well-established broker with offices in Kingstown, St. Vincent and the Grenadines. The broker accepts bank transfers as well as crypto funding while offering its customers fast times on deposits and withdrawals. It allows trading in digital assets, forex, indices, and metals.  The minimum deposit is $50 using credit card and bitcoin, and $10 using Vload.

Benefits of Trading Forex with Bitcoin

  • Increased privacy – When you trade forex using Bitcoin, you don’t need to share your personal financial info.
  • Increased leverage – Many brokerage firms offer leverage to Bitcoin traders. If you know how to use leverage, this can be hugely beneficial.
  • Potentially lower costs – Bitcoin deposit forex brokers are reportedly lowering brokerage fees to attract the new breed of BTC-forex investors.
  • Lower deposits allowed – Again, it appears like Bitcoin deposit forex brokers are using this strategy to attract new investors.
  • Easier cross-border trading – Thanks to Bitcoin being a global currency, you can trade with any broker from anywhere.

Risks of Trading Forex with Crypto

  • Volatility – Since Bitcoin’s prices change continuously, a broker may take advantage of traders by receiving their Bitcoin using the day’s lowest rate and exchanging it at the day’s highest rates. 
  • The leverage temptation – The special leverage used to entice BTC-forex brokers is a great risk to novice investors.
  • Mixing of asset classes – Bitcoin and forex are different asset classes. This use of an ‘intermediary’ currency increases trading complexity and risks.
  • Bitcoin’s inherent risks – Bitcoin, like all cryptos, can be easily stolen if not properly secured. A broker that is licensed and reputable ensures the safety of your funds.

Final Thoughts

Using Bitcoin to trade anonymously offers several benefits. You can take advantage of the higher leverage, lower deposits, lower costs, easier cross-border trading, and so on. There is also an ever-increasing number of Bitcoin deposit forex brokers you can experiment with. However, ensure to employ plenty of caution and thoroughly research brokers so you don’t lose money, and start slow, testing it with minimum deposits and thin trades. Overall, anonymous forex trading with Bitcoin is an exciting endeavor that you can explore – whether you’re a veteran or new to the game. 

Categories
Crypto Daily Topic

How to Spot Scams in Decentralized Finance 

If you have been in the crypto industry for more than a minute, you’ve probably heard about decentralized finance (DeFi). It is one of the fastest-growing sectors in the crypto scene, having registered an 1116% increase this year. DeFi grew tremendously, increasing from $674 million in January to $14.185 billion today.

However, the impressive growth also comes with a drawback; DeFi scam projects. 

Thanks to FOMO, scammers are jumping on board the DeFi craze. Blockchain’s properties of being permissionless and decentralized make it easy for anyone to launch fraudulent scams. Scam cases have been so prevalent that prominent entrepreneurs, such as Craig Wright, write off DeFi completely. 

The truth is that not all projects are fake. So, how do you separate the wheat from the chaff? 

More on that later, but first, let’s have a look at the common DeFi scams you should be aware of. 

Common Types of DeFi Scams

Although criminals will come up with all kinds of DeFi scams, they most likely will fall under any of these four categories. 

i) Exit Scams

Exit scams are perhaps the most widespread DeFi scams around. In this case, developers announce a project’s launch and stir the crypto scene with details of the project. Once they have people talking about the project, the criminals disappear with all the funds locked in the protocol. 

Exit scams are usually hard to trace, thanks to the decentralized nature of blockchain. However, in an isolated incident, the world’s largest crypto exchange, Binance, announced in November that it had recovered 99% of the funds stolen from the platform through an exit scam. 

ii)Pump and Dump

Pump and dump schemes are no stranger to the financial world. These schemes are typical in the stock world and are used to boost stock prices on false statements. Crypto pump and dump schemes work similarly. Investors who are in on the scheme start by creating a buzz around a particular DeFi token. They increase the coin’s awareness on different social media channels, which results in a price increase. More unsuspecting investors get on board and buy the tokens, which further increases its price. 

Once the group reaches its target, the initial investors start selling their tokens. The massive sale of the tokens causes a dip in the prices. While the initial investors make a profit, those unconnected to the scam deal with significant losses. 

iii) Admin Imitator

Most of these scams happen on social media platforms such as Twitter, Telegram, and Discord. Usually, DeFi developers use this platform to form a community around their projects. 

Scammers use these platforms to target unsuspecting investors. They pose as one of the members of the support team and convince investors by using the same image and usernames as legitimate members of the development team. 

The scammers then pretend there’s an issue with the project and inform users of the same. They ask the users to send ETH to a specific address or send their private keys to solve the issue. 

iv) Discord Bot Scam

This is a relatively new tactic that scammers are using. The criminals create a bot representative of the DeFi project, which they use to send updates, news, and features updates via a link. Users who click on the link are then redirected to a compromised version of the DeFi platform. These bot scams usually end up in numerous phishing attacks on the users. 

5 Questions You Should Ask to Identify a DeFi Scam

So, how do you tell a legitimate DeFi project from a scam?

Before you invest your money, you need to ensure the project is viable. Finding the answer to these five questions will help you identify a DeFi scam from miles away. 

What’s the Project’s Purpose?

It may seem like an obvious question, especially for an investor who’s new to the crypto scene. However, taking a keen look at the project’s purpose can help you avoid hefty losses. 

DeFi projects are supposed to be innovative, and the legitimate ones usually are. However, most of the upcoming projects have nothing to offer and are only riding on the ongoing craze. 

Before committing your money, have a clear idea of what the project is all about. Does it bring anything new to the crypto scene? Is it an innovative solution? How different is it from its competitors?

Is There a Smart Contract Audit?

Project audits are a common feature in the DeFi space. For smart contracts, audits are an essential part of the development and help to ensure the project’s code is secure. 

Despite it being a requirement for developers to deploy their code with an audit, most don’t adhere to this. The audits are quite expensive, so scammers won’t bother incurring the additional costs. 

Sure, an audit report for a DeFi project doesn’t mean the platform is entirely safe and shouldn’t be a decisive benchmark for the ideal project. However, it’s an excellent indicator to help you weed out scam projects.  

Who Are The Founders?

Most investors don’t give a second thought about the founders, but it helps to have some information on them. 

Anonymity in the crypto space is not new; after all, it is one of the pillars of blockchain technology. Therefore, it’s not unusual to come across DeFi projects whose founders choose to remain anonymous. 

So, are all DeFi projects run by anonymous founders a scam? Not at all. However, if the founders are anonymous, they cannot be held accountable in case anything goes wrong. So, you can always go for a project with unknown founders, but you run the risk of losing everything and having no one to go after if you lose your money. 

Is There Any Developmental Activity?

One of the best features of DeFi is that most of the platforms are open-source. This means that the development team avails the code to the public so that anyone can make changes to it. Therefore, if you have any code-knowledge, you can always check out the source code to identify any malicious activity. 

The best part about open-source DeFi projects is that if they raise enough interest, more people get on board. You, therefore, have more people checking out the source code for any bugs; thus,  increasing the chances of spotting anything off. 

You should also check the developer’s activity. Are they often deploying new codes? It may not be enough to spot a fake, but a project with zero developer activity should undoubtedly raise some eyebrows. 

How is the Token Distribution?

When finding out more about a DeFi project, you should always pay keen attention to its tokenomics. For starters, find out more about the token’s allocation. 

As expected, the founders will probably hold the lion’s share for themselves. However, this could end up being a problem if the developers are scammers. They can easily hike the token’s prices and later dump their coins in the market, causing the token to lose its value. 

Additionally, the distribution model used is essential. An exclusive presale will mean that only a select few will acquire the tokens at first and cause hype around the project on social media. Airdrops are likely to cause a sell-pressure, while IEOs are more reliable since crypto exchanges put their reputation on the line. 

Do Your Own Research!

Figuring out whether a DeFi project is about to dupe, you can be an uphill task- yet, it’s quite necessary. After all, no one wants to lose their hard-earned money. 

Although these five crucial questions will give you a headstart, they aren’t conclusive. Before placing your money in a sinking ship, do your own research and learn all you can about the project. Not all DeFi projects are a scam, and if you get a legitimate one, it could end up being a worthy investment with massive profits.

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Cryptocurrencies

Arbitrage Trading in 2021? Here Is How I Make A Kill

Cryptocurrency provides so many avenues for people to make money. Whether it’s trading, mining, staking, or lending, you can make money from crypto in any of several ways. However, one method that flies under the radar (and hence many people don’t know about!) is arbitrage trading. Arbitrage trading is a way through which you can make extra cash in a (relatively) risk-free manner.

This article explores the world of arbitrage trading. And, in the end, you will know whether it’s for you. 

What’s Arbitrage Trading? 

Arbitrage trading is an approach to trading that exploits the differences in the price of a cryptocurrency in various exchanges. For instance, let’s say Bitcoin is trading at $9,000 on Coinbase but at $9,200 on Huobi. A savvy trader might move in to take advantage of this price difference by buying the currency from Coinbase and immediately selling it at the price listed on Huobi. 

One may wonder, what causes the difference in pricing of the same asset on different exchanges? This could be due to issues like an exchange having a limited supply of a currency and hence selling it at a higher price than other exchanges that have the currency in a higher volume. 

Various crypto arbitrage methods

You can participate in arbitrage trading using either of three ways: spatial, cross-border, and statistical. 

#1.Spatial Arbitrage

This method involves exploiting the imbalance in prices of a cryptocurrency on two exchanges. While Exchange A might have set Bitcoin at $8,000, exchange B might be offering it at $8,400. A trader can buy the crypto from Exchange A and sell it on Exchange B. Such discrepancies are likely to occur due to the unregulated nature of the market. 

#2. Cross-border arbitrage

This method is not so different from spatial arbitrage – the only difference is that the exchanges involved are in different countries. It can be difficult to pull off cross-border arbitrage because it can be difficult to move the assets between such exchanges. 

#3. Statistical Arbitrage

This is the most sophisticated arbitrage of all three. Statistical arbitrage involves mathematical modeling using bots that take advantage of pricing imbalances that can exist in very short amounts of time. 

Why is Crypto Arbitrage Trading Worth it? 

There are several reasons why you might want to dip your toes in crypto arbitrage trading. Let’s look at these:

#1. Fast and easy profits

If your arbitrage trading goes according to plan, it’s a quick way to earn a profit. Since the process depends on speed, it’s easier to make money than with regular trades.

#2. Lots of opportunities

There are practically hundreds of exchanges where you can trade crypto, meaning you have lots of arbitrage opportunities.

#3. The crypto market is still growing and volatile 

The crypto market is still young, and there are no structures in place, meaning most exchanges will not share information and work independently. Most cryptos undergo quick rises and equally quick drops, causing price discrepancies and profitable arbitrage opportunities.

#4. Limited competition

In the crypto space, there’s less competition when you compare with the traditional finance market. Not many traders are looking to explore crypto, much less crypto arbitrage, making the field so much less competitive. 

#5. Guaranteed price disparities

It’s almost a given that a given cryptocurrency will have different prices on different exchanges – with the difference between 3% to 5% and sometimes (though rarely) even up to more than 20%.

#6. Choosing an exchange for crypto arbitrage

Fancy giving crypto arbitrage a trial? The first step is to evaluate the desired exchanges and then registering. Some exchanges require customers to have their account verified, which may take days or weeks, depending on the exchange. Others will require you to deposit money before you can start trading. Still, other exchanges may be less strict in their onboarding process, but most of them will require you to undergo a Know Your Customer (KYC) process. 

What to consider before you sign up on an exchange

  • Fees: When it comes to trading, fees matter, period. Always try and go for low fees. However, don’t sacrifice quality for cheap fees. Always find a balance.
  • Geography: Check whether an exchange or its features are restricted in your jurisdiction. 
  • Reputation: Check what people are saying about the exchange before you put in your money. Search on Google, check various crypto platforms, and so on. The goal is to avoid shady and spammy exchanges. 
  • Withdraw time: An exchange might take hours or days to allow cashouts, so make sure to understand the rules beforehand.
  • Account verification: Some exchanges allow you to withdraw money or provide full access to the markets only after verifying your account. Always confirm the procedure for the exchange before you sign on.
  • Liquidity: Exchanges do not have liquidity in equal measure. If you’re planning on trading large quantities of funds, make sure the exchange has sufficient liquidity.

The Potential Downsides of Arbitrage Trading

Just like with any worthy endeavor, crypto arbitrage trading has its downsides. Let’s see what you need to look out for: 

KYC Restrictions: As we’ve mentioned above, nearly every exchange has KYC regulations in place. You need to observe these regulations, even if they are inconvenient. For instance, you may need to have a bank account in the home jurisdiction of the exchange. Other requirements may include verifying your identity, and so on. Sometimes these procedures can take days before you’re allowed to trade. 

Safety of funds: Since you will be moving funds across several exchanges, you will most likely need to have funds across all of them. Most of the time, such funds are stored in online wallets, making them susceptible to theft. Some lesser-known exchanges could also steal from customers. It would be best if you were extra vigilant with where you sign up for trading. 

Fees: Exchanges usually charge a definite percentage of your profit as fees. Ensure to calculate this before you start celebrating 

The larger the trades, the more the profit: Profits from Bitcoin trading can be very meager when you factor in the processing delays and fees. So to make any substantial profits, you may need to trade more or increase the volume.

Withdrawal limits: Some exchanges impose withdrawal limits once trade volumes cross a certain threshold. This means you will not withdraw all your money within the same day.

Timing: Transactions can take minutes to be completed, depending on the blockchain. This is a very long time in the world of crypto. By the time they are over, you may have lost your potential profit. Indeed, many are times when you may not receive profits as the markets correct themselves, and the profits turn into a loss. You may have bought crypto in one exchange in some cases, but by the time you transfer them to the other, the markets have moved in the opposite direction.

Slow transactions: As crypto increases in popularity, so does trading volumes on crypto exchanges increase. This may make for slower transactions, which is the last thing you want in arbitrage trading. 

Competition: As more people move into crypto trading, the more the competition, and the fewer arbitrage opportunities for everyone

Final Words 

Arbitrage trading is a worthwhile way to make extra money with crypto. As long as you play your cards smart – and quickly – you can make good bucks. But like anything, there are a few downsides. However, you win some and lose some. That’s just life. 

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Crypto Daily Topic

What Really Is Selfish Mining: Will Bitcoin Survive This?

Mining is the process through which new Bitcoin blocks are generated. Individual nodes on the Bitcoin network race against time in a series of guesses for the right block. Due to the large size of the network and transaction load, this process is resource-intensive – it requires sophisticated computing equipment and consumes massive amounts of power. 

Selfish mining is when a miner withholds newly generated blocks then releases them to the public ledger when they have formed the longest chain. Other legitimate miners may join the selfish miner on their private network due to the possibility of higher returns. The practice is neither illegal nor disallowed, but selfish mining undermines Satoshi’s vision of decentralized production and distribution of money. 

How Selfish Mining Works

Mining involves solving complex cryptographic puzzles, which are guesses. Depending on the difficulty of the puzzle being solved, and the associated power costs, the reward you can earn from this process can vary greatly. As such, even if miners combine effort, the overall output for each miner is proportional to the individual effort invested. 

This was the case until researchers Ittay Eyal and Emin Gun Sirer discovered that miners could actually cheat the system by hiding the newly-generated blocks from the public blockchain. Transactions will still be verified, and new BTC generated because the newly-generated blocks are made available on the selfish miners’ private networks. By withholding the new blocks from the public blockchain, such miners circumvent the infrastructure restrictions that make mining resource-intensive and speed up the discovery process. 

Whatever makes selfish mining possible is a vulnerability on the Bitcoin network that uses the longest chain rule to indicate which chain to follow. Usually, the correct chain to follow is the one with the highest number of new blocks – in other words, the one with the highest proof of work. Since it is possible to withhold a block and release it after accruing several of them, one can always wait until they have several blocks then release them to the public blockchain. This will result in other miners following that chain and surrendering their earnings to the owner of this chain. 

How It Impacts Bitcoin’s Integrity

Undoubtedly, selfish mining poses a threat to Bitcoin’s integrity. Cryptocurrencies sell on the premise that they are decentralized and tamper-proof. Thus, the idea that a group of people can collude to subvert the system’s mechanics raises concern. 

Of particular concern is how selfish mining increases the possibility of a 51% attack. Over time, selfish miners can create mining pools with an ever-growing hash rate. As more parties join the pools, their chances of acquiring majority power increases. Eventually, this may allow them to block other miners, reverse transactions, exclude transactions, and so on. However, considering how large the Bitcoin network is, there is only a low likelihood that a mining syndicate will gather enough resources to take most of the power. Additionally, Bitcoin enthusiasts believe that the motivation for selfish mining is lower than the rewards. If other parties decide to join selfish miners in their pools, they might eventually be unable to recover the investment they made in their mining operation.

The practice of selfish mining is also wasteful in that miners spend serious resources trying to find a block that another miner is withholding. Thus, it is only economical for all miners to just play by the rules. In short, this is neither a sustainable nor responsible way to generate earnings on the Bitcoin network. 

How Selfish Mining Undermines the Decentralization Philosophy 

Decentralization is at the heart of Bitcoin’s philosophy. Satoshi envisioned that no person or group of people would have the authority to control the production or distribution of coins on the network. 

When a selfish miner generates a new block, their chain will be shorter than the public blockchain. However, if they keep hoarding blocks, their chain might eventually become longer than the one on the public blockchain. Naturally, honest miners will be inclined to join the private chain to earn more because the private network has a better chance to realize new blocks faster. If the selfish miner keeps ‘recruiting’ rational miners to their pool, they could eventually control the majority of the public blockchain. In essence, they will have all the power to generate and distribute Bitcoin. 

Is It Anything New?

Selfish mining is not entirely new, and for that reason, it should be particularly worrying to Bitcoin users. At the moment, two-thirds of all Bitcoin generated is mined in China, which is not a result of selfish mining. It just happens that it is easier to access ASICs in the country, plus electricity is way cheaper there than in other mining locations. As such, concerns have been raised about whether China has had a mining monopoly of sorts. Whatever the case, there is no indication that Chinese miners are working as a single enterprise. 

Are There Consequences?

If only a few miners adopt selfish mining, the overall impact on the blockchain network will be negligible. On the other hand, if all miners, hypothetically, take up selfish mining, their efforts will cancel out. Renowned economists have reiterated that it seems to make sense, while theoretically, the practice is not economically viable. Paul Sztorc, a popular economist, thinks that selfish miners will lose motivation upon realizing they are only backstabbing each other. In conclusion, selfish mining does not have enough economic motivation to become a widespread practice. 

Also, this activity may adversely impact Bitcoin’s reputation, which may cause its price to drop. Consequently, selfish miners will earn more Bitcoins but ones that are devalued. 

What’s the Future of Selfish Mining?

Selfish mining is likely to remain in theory or limited practice due to the reasons we’ve mentioned earlier. As we have seen, the major challenge with this practice is that if it becomes widespread, it will turn into a dirty game as selfish miners will be competing in hoarding new blocks. While this decreases the economic motivation, it might not exactly protect the Bitcoin network from the inefficiencies created. 

So, what would be a better solution? A research paper has proposed a scheme for penalizing nodes that withhold new blocks. The proposal ensures that miners who generate new blocks and fail to publish them on the blockchain have their mining rewards reduced. This would be an ideal penalty for selfish miners, but it appears as if the practice is not a huge threat currently.

Final Thoughts 

Selfish mining can allow mining syndicates to increase their revenue by always creating the longest chain and attracting other miners to their pools. While the threat is realistic, the likelihood of widespread selfish mining is diminished. The practice is wasteful, and if it becomes widespread, all miners lose their rewards. As we wait to see if indeed the threat will ever become substantial, Bitcoin users can rest easy knowing that Satoshi’s vision of decentralized production and distribution of money lives on. 

Categories
Cryptocurrencies

Just How Promising is the NFT Market?

The NFT market is the collection of all NFT trades. So, let’s define NFTs first. An NFT (Non-Fungible Token) is a special kind of crypto token that just cannot be exchanged for another (possibly) equivalent token. 

In the cryptocurrency universe, there are coins, tokens, and other miscellaneous digital assets; and there are non-fungible tokens. Of all these, NFTs stand out for one cool reason: each token is different and can be uniquely identified. Let’s contrast them with currencies – a dollar bill can be exchanged for another dollar bill to put this into perspective. But it wouldn’t be that straightforward exchanging a diamond ring with another. 

Crypto Tokens Primer

Before diving deep into NFTs and their promising future, let’s first review cryptocurrency tokens from a wider perspective. 

Generally, a crypto token is a digital representation of an asset or a specific utility. For instance, such a token could represent redeemable loyalty points. Typically, these tokens can be exchanged for cryptocurrencies, fiat currency, or some special privileges. Like all other cryptocurrencies, they reside on the blockchain – which allows them to leverage all the benefits of distributed ledgers.

NFT Applications

One of the things that make the NFT market potentially explosive is its increasing adoption in various applications. Within the last few years, developers have come up with NFT-based solutions for different use cases. Let’s look at a few of these:

  • Crypto art – This emerging concept is a blend of art and blockchain technology. The idea has been used to help artists claim ownership of their works, create currencies specifically for buying artworks, and verify artwork’s authenticity, among other uses. Judging by the number of startups, there is growing interest in the use of NFTs in art. 
  • Digital collectibles – Collectibles such as trading cards have been developed based on NFTs. The Rare Pepes and Age of Chains projects are good examples of how NFTs have inspired the generation and distribution of digital collectibles. 
  • Gaming – The gaming industry is undoubtedly seeing unprecedented disruption levels, thanks to the invention of NFTs. There are already a myriad of NFT use cases within the gaming sector, and this list is growing. To understand the weight of NFTs’ potential in gaming, note that gaming activity on Cryptokitties (an Ethereum-based game that allows players to purchase, collect, breed, and sell virtual cats) once caused a traffic jam on the Ethereum blockchain. 

Why NFT Is set for Exponential Growth

As of June 2020, the total sales of NFTs had reached $100 million. The 1-year market performance of NFTs (between November 2019 and November 2020) has not been characterized by dramatic rises and falls – as has been the case with some of the major cryptocurrencies. Even so, the NFT market has shown a slow but steady growth within that period. Developments in the sector suggest that NFTs could only grow faster. Below are the top five reasons why you should think so too.

#1: Scarcity 

NFTs are designed with scarcity at the very core of their philosophy. Tokens such as trading cards and in-game assets exist in minimal quantities. For instance, each virtual cat on Cryptokitties is unique. This means that if you fancy the cat and really want to have it, you must be willing to spend some coins. This would not be the case if you could duplicate the cat or if all cats were equal.

As crazy as the idea sounds, the game’s logic’s psychological aspects make it work just as intended. The idea that there is only one unit of a certain item drives its demand.

#2: Fun and Simplicity

Compared to cryptocurrencies, NFTs are fun and simple to understand. These two features make it easy to learn and adopt NFTs for different uses. There is a multitude of NFT users who don’t even know they are enjoying the fruits of blockchain. In contrast, most cryptocurrency users are forced to learn some of the hard stuff about how crypto’s work is like picking a good wallet, avoiding scams, etc. In short, NFTs were invented (or have been adapted) majorly for fun use. 

Needless to say, the increasing use of NFTs in gaming will promote its adoption. Games have been used to promote the adoption of computers, health interventions, learning activities, and much more. These are all indications that the use of NFTs in gaming will give its adoption a power boost and ultimately contribute to this market’s growth.

#3: High Acceptance in Asia

Asia plays a crucial role in the gaming world. Even before cryptos came into existence, South Korea’s gaming industry had already invented the concept of redeemable in-house currencies, something that could allow you to convert in-house currencies to South Korean Won. Many fun, cute little characters (including many of the emojis we know today) were born in Japan.

The fact that most NFT projects (games in particular) target the Asian market means that they are likely to fit naturally into the region’s cultural context, and this will organically drive up the growth of the NFT market. 

#4: Attractive Investment

NFTs present themselves as equally attractive (if not more) as cryptocurrencies. Part of this high appeal comes from their simple nature. NFTs also highly resemble real-world valuables, which investors are already familiar with. An example is rare artworks whose valuation is widely criticized for being arbitrary. Factors such as who previously owned an artwork, the reputation of the gallery where it is curated, its provenance, etc., can exponentially drive up the artwork’s value. 

Back to NFTs – developers can easily create crypto artworks, such as game characters, and assign them these “special attributes.” In case you’re wondering why everyone won’t just create their characters and make money, well, it all boils down to scarcity. And this heavily depends on developer’s/investor’s creativity.  

#5: Mainstream Adoption 

NFTs are making their debuts in different sectors of the mainstream economy, and they are already creating a frenzy. Nike, for example, has filed a patent for its proposed CryptoKicks – physical shoes with digital identities. CryptoKicks will allow Nike’s customers to set apart genuine sneakers from knock-offs. Since it will be possible to trace a pair of sneakers’ ownership history, we might start seeing high-stake auctions and the like. The bottom line is, NFTs have officially entered the mainstream economy, and it won’t be the same again. 

Final Thoughts

NFTs are among the latest inventions on the blockchain. While they have been adapted for several utilities, their use in gaming is particularly notable. To date, NFTs worth $100 million have been traded – which is a sign of investor confidence in the relatively new concept. Also, 2020 has been a fairly good year for the sector, which has so far recorded a slow but steady growth. NFTs are easy to learn and use, which gives them an edge when it comes to quick adoption among user communities. Coupled with scarcity, high adoption in Asia, its attractiveness to investors, and increasing mainstream adoption, the future of NFTs is highly promising. Naturally, the next thing to look out for is how to take advantage of this promising future. 

Categories
Crypto Daily Topic Cryptocurrencies

How to Mine Litecoin: No One Will Ever Tell You This

Litecoin is one of the most popular cryptocurrencies today. The currency is a clone of Bitcoin and appears to ride on the popularity of the pioneer cryptocurrency. However, the crypto has its own merits – like being a ‘lighter’ version of Bitcoin and thus being used in day-to-day transactions. Litecoin is faster than Bitcoin – having a block time of 2.5 minutes compared to Bitcoin’s 10 minutes, meaning it’s quicker and easier for Litecoin miners to make money. 

Litecoin was created in 2011 by Charlie Lee, a former Google engineer. He modeled it after Bitcoin but with certain modifications intended to help it scale compared to Bitcoin. At the time of writing, the currency has a per-token value of $69.54 and a market rank of #7 with a market capitalization of 4.59 billion. 

In this piece, we’ll take a look into the nitty gritties of mining Litecoin.  

#1. Mining equipment

In the early days of Litecoin, the cryptocurrency could be mined using CPUs and GPUs. Litecoin uses the Scrypt hashing protocol – the first successful cryptocurrency to use it. Lee opted for Scrypt instead of Bitcoin’s SHA-256 due to the former being lighter and also because”using Scrypt allows one to mine Litecoin while also mining Bitcoin.” 

However, it’s no longer possible to turn a profit when mining Litecoin with CPUs and GPUs. This is because as competition has ramped up for the currency, mining difficulty has increased, requiring miners to use application-specific integrated circuits (ASICs) developed specifically for the currency. One of the most popular ASICs for Litecoin include Bitmain’s Antminer and LTCMaster. ASICs tend to go for around $1,000 for older models and around $2,000 for newer models. It’s best to go for the newer models, which are more effective. 

 #2. Should you join a mining pool? 

Once you’ve identified which hardware to use, the next decision will be to mine solo or join a mining pool. A mining pool is a group of miners who share computing power to multiply the chances of finding a block and earn mining rewards. Mining alone means you will get to keep all the mining rewards plus a fraction of the transaction fees. (The current mining rewards are 12.5 LTC per block. This will be halved in the next Litecoin halving, which will happen in 2023). And even then, this will require that you have massive hash power (multiple ASIC machines). Mining with a single ASIC is almost guaranteed never to turn a profit. 

By contrast, concentrated computing power in pool mining makes it many times easier for the pool to discover new blocks and attain a reward. The reward is then distributed according to the contribution of each miner. Bear in mind pool mining itself is not guaranteed to turn a profit since it depends on chance, but earnings via a pool are more steady than solo mining. 

Before you join a mining pool, make sure to investigate it thoroughly. Some pools out there are outright scams, while others are just plain shady. Also, it’s not uncommon for a mining pool to fall victim to hacks. So always check a pool’s security history and how they handled any breaches, reputation, member reviews, and management team. Also, try not to keep large amounts of your proceeds with the pool. It’s good practice to transfer proceeds to your wallet as soon as possible. 

Some of the most trusted and popular Litecoin pools out there include F2Pool, LitecoinPool.org, ViaBTC, and ProHashing.

Litecoin: Cloud Mining 

ASICs and pools are not for everyone. Maybe you want to mine Litecoin and don’t have the means or desire to splurge on expensive hardware. Well, you’re in luck because there’s an option of cloud mining that allows you to pay a remote data center to do the mining for you.

With this option, you will be required to put up a certain amount of money – but not nearly as much as you would for an ASIC – to get access to the cloud mining platform. The more you invest, the more you stand to gain from the platform. 

We can’t stress this enough – cloud mining is even more susceptible to scams than mining pools. There are individuals out there who are happy enough to take strangers’ money without an actual mining operation going on on their side. This behooves you to do serious research before getting entangled with any cloud miner. One of the most reputable cloud mining sites is Scotland-based Hashflare, which also has data centers in Estonia and Iceland. Hashflare has been around since 2014 – demonstrating its credibility and staying power. 

Wallets 

The last thing you need to consider is where to store your Litecoin. You have a variety of options starting with the Litecoin Core Client. This is a wallet by the Litecoin Foundation and is open-source, feature-packed, and updated regularly to make it more robust and easier to use. With the Litecoin Core Client, you can store, send, and receive Litecoin as well as view the transaction history of the blockchain. To use this wallet, you have to download the full blockchain on your computer. Of course, it will take up a lot of space, but it pays a lot of security dividends in the long run. The wallet supports Windows, MacOS, and Linux. By using Litecoin Core, you also contribute to the network’s security and decentralization since you’re running a ‘full node.’ 

You also have the option of a cold storage wallet. A cold wallet is one that’s not connected to the internet. This means it is unhackable, and hence very safe. If you have a large sum of Litecoin, a cold storage wallet is your best go-to option. There are also paper wallets that constitute a physical paper in the form of a QR code or a string of alphanumerics. A paper wallet is safer than an online wallet, but it’s vulnerable to theft and damage through fire, water, and wear and tear. You can increase your paper wallet security by laminating it and putting it in a safe place that only you know about. These days, people even strongly advocate for ‘brain wallets,’ which constitute memorizing a seed phrase that you can use to recreate your private key. Obviously, a brain wallet is the most secure of all these options.

Other people choose to keep their crypto funds on exchanges. Exchanges have the advantage of quickly swapping your crypto for fiat. However, this option is not recommended. That’s because exchanges are famously the target of hacking, and you can lose your money in the case of a security breach. Also, you have limited control over your Litecoin in such a wallet. 

Final Thoughts 

Litecoin is one of the most relevant cryptocurrencies, and investing in it through mining is a savvy move. Of course, there are risks to every profitable endeavor, so make sure to do your due diligence before you go all in. 

Categories
Cryptocurrencies

Bitcoin or Ethereum in 2021, Where Should You Invest?

Bitcoin started the year (2020) on a rather low key, fetching only an average of $7,500 until July when things started looking up. Ethereum seemed to play the same tune for the first half of the year. Unsurprisingly, both cryptocurrencies showed steady growth against the dollar from July onwards. This trend can be confusing to investors – should you invest in Bitcoin or Ethereum in the coming year? In this article, we help clear the confusion by addressing each currency’s nature, its performance in 2020, and its prospects in the coming year. 

Are We Comparing Apples to Oranges?

Seasoned investors will be quick to note that Bitcoin versus Ethereum is an odd comparison, and they’d be right. Bitcoin is inherently a currency and not much more. On the other hand, Ethereum has DApps, smart contracts, tracking of digital collectibles, and many other uses. So, on a broader scale, comparing Bitcoin and Ethereum might not make sense. 

However, Ethereum has ETH, which is pretty much tradable like BTC. You can invest in ETH just as you would do with BTC. So, we can go ahead and compare BTC and ETH as investment alternatives.

Bitcoin versus Ethereum Price Trend 

Bitcoin usually sets price trends for all other cryptocurrencies, and any instabilities faced by the network sends ripples across the entire cryptocurrency universe. The performance of both Bitcoin and Ethereum followed a similar trajectory in most of 2020. In the first half of the year, Bitcoin seemed to struggle, and so did Ethereum. Both hit their all-time lows around March, but a keen analysis of the price history reveals that Ethereum was always trailing

This is an advantage if you are planning to invest in Ethereum since you have a better chance of predicting how things might turn out in the short run. If the 2020 Bitcoin-Ethereum price trend spills over to 2021, you can assume that ETH price fluctuations will follow Bitcoin in about 7 days. For instance, if you plan to buy ETH, wait for BTC to drop consistently for about 7 days and then jump in. Of course, do not religiously rely on this trend as other forces might come to play and disrupt the pattern.  

Adoption and Ease of Use

A cryptocurrency’s appeal and ease of adoption can give it some edge when it comes to investment. When there are plans to adopt a cryptocurrency for some industry use, its price usually hikes. For instance, in October, PayPal announced that it would start allowing Bitcoin spending on its network from early 2021. The plan is to incorporate most of the major cryptos ultimately. Still, the company mentioned that it would start with Bitcoin, which was good news for Bitcoin investors more than any other crypto investors. There had been rumors about this announcement from the beginning of October, and Bitcoin’s prices were already going up as the month began. Bitcoin was exchanging at the time of writing at almost $14,000 – the highest in 30 months. 

Visa and MasterCard had already introduced crypto credit and debit cards. They are currently seeking to extend the availability of these cards to Europe and states in the US that have yet to be covered. Cryptocurrencies are increasingly integrating into the mainstream economy, and we are likely to see an increase in such activities in 2021. Given that Bitcoin’s ease of adoption gives it an advantage over other cryptos, it might be a better choice. 

Consider the Impacts of the US Elections

US elections usually seem to shake the global economy. During Trump’s first presidential contest, there was widespread uncertainty over economic and political outcomes. Speculation that he could win led to a weakening of the dollar relative to the four major currency pairs. Bitcoin’s prices rose slightly at the same time – indicating that the two events could have been related. Generally, if there is political uncertainty, the dollar may weaken and cause reduced stock markets’ activity. In such cases, investors may turn to crypto trading.

If the elections sail smoothly, we can expect minimal disturbance to the stock markets. However, if political turmoil follows the elections, there is a chance investors will shy away from the stock markets, and, conversely, activity in the crypto space may increase. Naturally, Bitcoin would take the lead as others follow. 

Bitcoin’s Prospects in 2021

Since the start of Bitcoin’s bear market in 2018, the currency has struggled to surpass the symbolic $10,000 mark, which can be considered its 30-months resistance threshold, only hitting the high twice but briefly. However, since July 2020, Bitcoin seemed to have overcome the resistance, maintaining a minimum of $10K and having peaked at $13,950 in November. Between October 17th and 27th of the same month, Bitcoin leaped a whopping $2,000! All these arguments indicate that the currency is strongly poised for the bull market in the coming months.

Overall, things are looking up for Bitcoin. The upcoming PayPal integration and adoption by Visa and MasterCard are also expected to give it a major boost. Nevertheless, if you’re considering investing in Bitcoin now or in early 2021, bear in mind that a resistance/support flip at $14,000 is conceivable. Therefore, you may want to hold on until you observe downward movement within the $14,000-$12,500 range. 

Ethereum’s Prospects in 2021

Ethereum has exhibited a lot of uncertainty in 2020. For instance, between March 6th and March 12, the currency dropped from $243 to $112 – losing more than half of its value in less than a week. However, it showed steady growth between April and July before making a sudden upward move to $380 in August. Since then, it has appeared to be oscillating between resistance at $380 and support at $320. Of course, there have been sudden but brief spikes and falls in between, but this resistance/support pair gives a general idea of how the currency has been performing in the last quarter of 2020. 

There are numerous Ethereum projects that are currently going on, and others scheduled for early next year. Most of these ventures are decentralized applications (DApp) projects. However, none of them seem to have the potential to disrupt the crypto economy substantially. This could be partly because Ethereum has a rather low rate of adoption. Based on these observations, we are unlikely to see the currency make a bullish run. Even so, slow and steady growth in 2021 is very much conceivable. 

Judging from its performance in the last half of 2020, it would be safe to assume that Ethereum will be a low-risk-low-return investment, at least for the better part of 2021. 

Final Thoughts

Both Bitcoin and Ethereum offer exciting investment opportunities. Each has a unique profile that makes it suitable for different investor needs. Both currencies have also shown relative stability and growth in the last half of 2020. However, the high volume of activity involving Bitcoin indicates a higher likelihood of the currency shooting even higher in 2021. On the other hand, Ethereum seems to be poised for slow but steady growth in the next few months. All in all, it seems like a good time to consider investing in either. Just ensure you set your investment goals and check that they are aligned with the currency’s growth trends. 

Categories
Cryptocurrencies

How To Avoid the Bitcoin FOMO and Double Your Investment

‘The hardest thing to do in a bull market is to sit,’ says Mike Novogratz, a renowned Bitcoin evangelist. This is a feeling most investors can relate to. In a bull market, prices surge, and volumes skyrocket. And with the wave comes an irresistible urge to board the bandwagon – the fear of missing out (FOMO).

Beginning July 2020, Bitcoin has shown steady performance against the dollar and altcoins. However, it’s the currency’s performance in October and November that has left investors scrambling for the 18.5 million or so Bitcoins in existence. The Bitcoin FOMO is officially here, and many investors will make blind decisions. 

This article will look closely at the ongoing frenzy, what it means to investors, and how to approach it. 

Bitcoin in 2020

Bitcoin started 2020 modestly, only managing to fetch about $7K in January. It briefly jumped to $10K before plunging into an abyss, exchanging at less than $5K in March. But that seems to have marked the end of the dramatic falls. From mid-March, the currency started recovering steadily, and towards the end of July, it hit the symbolic $10K figure. Every time Bitcoin climbs to $10K, investors start getting all fidgety, as has been the case several times.

Since Bitcoin reached $10K in July, it has been going up almost consistently. In less than three months, it has gained over 50%, which is more than impressive. It isn’t easy to point out with certainty how things will turn out. However, investor greed and excitement is likely to push the figures even higher, at least in the short run.

What is the Fear and Greed Index Saying?

The crypto Fear and Greed Index is a contrarian scale that expresses investors’ general sentiment with regards to fear and greed. The idea is that when fear is high up there, investors will shy from trading, and that will cause prices to decline. On the converse, if investor greed is high, increased trading, and prices will rise. 

Different crypto fear and greed indices have shown a consistent increase in greed. A higher score represents more greed, while a low score represents more fear. Since these two factors are on opposite sides of the scale, one declines as the other increases. As reported by the fear and greed indices, the trend has closely resembled Bitcoin’s price trends all year long. 

Trading volume can give a clear picture of what is going on in the Bitcoin market. Exchanges everywhere are reporting sky-high volumes. 

An increase in volume usually triggers an increase in prices and hence an increase in market cap. 

What Has Caused the Sudden Interest?

When Bitcoin reached $10K in July, there was news all over the interweb covering this historical moment. Crypto evangelists and analysts, once again, resurfaced giving their expert opinions and predictions on how Bitcoin was going to double its value unless something ‘really wrong’ happens. You could look at it like a self-fulfilling prophecy, where speculators create so much hype that the market inevitably skews to their predictions. We certainly cannot underestimate the power that speculators have on market movements. In this case, there can only be little doubt that positive news about Bitcoin’s prospects contributed to increased interest in the currency. 

News is not the only positive thing that has been going around. In 2020, there has been a particular corporate interest in crypto. Several organizations, some of them high-ranking, have expressed interest in adopting cryptocurrencies. In October, Square – a global financial services provider – bought 4,000 Bitcoins for about $50 million, saying that it believes Bitcoin aligns well with the company’s purpose. Spending such amounts of corporate cash on buying crypto signifies corporate confidence in the future of cryptocurrencies. 

Just recently also, PayPal announced plans to have Bitcoin and other cryptos on its payments platform. This announcement was immediately followed by a surge in BTC prices to reach $12K. Several other top-tier corporations have expressed interest in mainstreaming cryptocurrencies, and this is undoubtedly part of the cause of the sudden surge in interest in crypto. 

What You Should Do

If you had not invested in Bitcoin before it broke the $10K barrier, you might be late to the party. Normally, by the time the buying frenzy kicks in, early-bird investors will be counting profits. Look at it this way, those who bought Bitcoin before July 26, that’s right before it surpassed the $10K high, are already counting a 50% profit less than three months down the line (BTC was at $15K at the time of writing). 

Even so, not all is lost. There are many indications that the Bitcoin market will be on the bull run for some time – how long that is, is a matter of conjecture. Therefore, you can still invest in BTC at this time and make profits. 

If you are determined to take the risk, here are some things to consider:

#1: Set Your Investment Goal – One of the unforgivable mistakes an investor can make is not to set goals. Such blind investments unsurprisingly end in tears. Setting a goal means having a plan for when to buy and when to sell. Just like gambling, you have to know when to hold them and when to walk away. For instance, you can decide to buy and sell when the price hits a certain figure, or you could decide to sell after a fixed term – regardless of whether you have gained or lost.

#2: Do Your Due Diligence – This is usually mandatory. Even if a reputable investor has advised you, you still have to do your due diligence. This may include seeking a second opinion, evaluating your finances, finding out whether you are ready to bear the risk, and so on. Because at the end of the day, it is your money that is at stake. Rushing into buying Bitcoin, especially amid such hype, may be regrettable. 

#3: Consider Altcoins – While all the attention is on Bitcoin, investors are busy ignoring other cryptocurrencies. When the Bitcoin market eventually heads for the bear run, investors might look at other cryptos. If you invest in the right altcoin at this time, you might be where Bitcoin’s early bird investors were before the frenzy began. 

#4: Sit on Your Hands and Lock Your Phone – Well, not literally, but if you can’t resist the temptation even when nothing makes sense, just avoid the markets altogether. This decision might save the little you have from drowning away in a possible market crash. As far as investment is concerned, you can consider that a profit.

Final Thoughts

Bitcoin’s recent performance has generated a lot of interest among investors. People are rushing to buy BTC, as evidenced by the increase in trading volume across exchanges. It would be great if we could all join the bandwagon, but extra caution is necessary for such market movements. Avoiding the hype is key in making a sound investment decision. You can invest in altcoins or simply avoid the markets until such a time when you can be under less pressure to make decisions. 

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Crypto Daily Topic

Forget Bitcoin; This Is The Altcoin Everyone Is Rushing To Buy.

Fusion is one of those cryptocurrencies that came not just as another currency but as a platform for innovation. Although it is an open technology that can be used in various applications, this crypto is best known for powering decentralized finance (DeFi). Like Ethereum and Ripple, which are both currencies and innovation platforms, Fusion also offers FSN, its native currency.

Fusion is currently among the least valued crypto in market capitalization and trading volume, but this is likely to change. If innovations on the platform pick up the pace, Fusion will soon be trading in the big league of major cryptocurrencies. 

In this article, we review this underrated crypto and explain why, as an investor, you should keep an eye on Fusion.

Fusion is Driving the DeFi Revolution 

As already mentioned, Fusion’s niche is in the financial technology innovation space. The crypto seeks to achieve this through:

#1: Enriching digital assets – Businesses can use Fusion to create bonds, futures, and other financial instruments with the end goal of separating asset ownership and rights. This is the kind of innovation that traditional finance needs. 

#2: Creating digital exchanges – Fusion provides tools that businesses can use to create any kind of exchange – decentralized, centralized, private, and any other whose need might come up. Using Fusion’s digital exchange tools, low-cost transactions become an even closer reality. 

#3: Managing licenses and royalties – Fusion provides businesses with a platform they can use to issue time-bound licenses and collect royalties for intellectual property while circumventing the traditional challenges associated with these processes.

These are only a few use cases that show Fusion is a crypto with real utility. And as you might know, utility is what gives crypto the potential for growth. With this knowledge, there is no denying that this cryptocurrency has a bright future. 

While these proposed use cases only show that Fusion has the potential for exponential growth, there are more compelling reasons why you should think the crypto is set to rise. Let’s dig deeper.

Why Fusion Will Rise 

We have already seen that Fusion is a crypto with real utility. Solely based on this information, speculators can bet their dollars on the crypto’s future success. But would its financial and technological outlook pass the scrutiny of analysts? Let’s analyze this together.

#1: Fusion is still undervalued – The crypto entered the scene in February 2018 at $3.60 and rallied within three months to reach $9 with a market capitalization of over USD 270 million. The market corrected months later, and the prices went below the $1 mark, where they have stagnated ever since. 

At the time of writing, Fusion ranks at position 453 by market capitalization. Given that Fusion is a solid project, this position does not reflect the cryptocurrency’s true potential. It rose in the past; it will rise again. 

#2: Fusion’s WeDeFi project is gaining momentum – WeDeFi is a DeFi project whose goal is to promote DeFi’s mass adoption. It sounds similar to some of Ethereum’s DeFi projects, but its bull’s-eye focus on mass adoption gives it an edge. Anyway, DeFi is already on the rise, and this makes Fusion even more promising. 

#3: You can earn passively by staking – Fusion allows you to earn (at the time of writing) a 17% annual percentage yield (APY) by locking your funds on the network for at least 30 days. Unlike Bitcoin and other networks that rely on proof-of-work, Fusion uses proof-of-stake to verify transactions. According to the Staking Rewards website, Fusion ranks favorably, even higher than most of the top 30 cryptos. You don’t need expensive mining equipment or even the technical know-how – just delegating your savings to stake is enough to multiply your investment! Once investors learn this secret, Fusion’s stakes will increase. 

#4: Fusion supports smart contracts – There is an interesting feature called “Time Lock” that allows users to schedule transactions. It works like standing orders – a Fusion token holder can play around with their tokens on the network, but when the scheduled transaction is due, the tokens will be automatically transferred to their new owner. This feature will open up innovation on the network and spur its growth. 

#5: Fusion will soon support cross-chain token swap – Fusion is the house of innovation, and this time, they want to make it even easier to exchange any crypto token with any other. Dubbed ‘Anyswap,’ this one-of-a-kind innovation will allow infinite crypto pair exchanges – fully secured with DCRM interoperability. Even Ethereum’s ERC-20 is not there yet. One can only imagine how attractive this innovation will be to investors. 

#6: Fusion has stable liquidity – Currently, many exchanges support FSN/BTC, FSN/ETH, and FSN/USDT pairs, quite impressive for a crypto that is not even on the top 400 list. Is this a sign of their faith in the imminent growth of the cryptocurrency? 

We can go on and on unearthing the unique features that demonstrate that Fusion is poised for success. But, to clear all doubt, let’s take a look at the numbers – after all, numbers don’t lie. 

Fusion’s Financial Outlook

In the whole of 2020, Fusion has mostly traded below $0.50 and maintained its market cap roughly between 5 and 35 million dollars – a marginal variation by crypto market cap trends. One would say that the crypto is uneventful and perhaps lacks the volatility desired by investors. While there’s some truth in this school of thought, investors with a low-risk appetite and a long-term vision might find this relative stability desirable. In the long run, all indicators point to Fusion’s growth, and the coin’s historical stability means that investors can hope for more rallies than corrections. 

Fusion’s 24-hour volume (at the time of writing) was roughly $2 million. This is the volume at a time when the coin was exchanging at $0.26. In contrast, its 24-hour volume was only $7 million when it was exchanging at more than $9. What we’re saying here is that the crypto’s trading volumes have yet to reach their potential explosive heights. When that happens (indicators say it shall come to pass), Fusion’s value will skyrocket, and investors will reap big.

Final Thoughts

Fusion is one of the most underrated cryptos, yet, it is among the most innovative with lots of potential. With solid utility, a good track record, and numerous innovations in the pipeline, this cryptocurrency is poised for success. Currently, it is marked by relatively low trading volumes, market cap, and exchange rates. However, on the brighter side, it can be exchanged for several common currencies – both crypto and fiat, which guarantees investors liquidity. As we have seen, there are many reasons to believe that the future of Fusion is promising. 

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Cryptocurrencies

Top Crypto Cashback Apps 2020

Crypto cashbacks or crypto awards are programs that allow you to get small Bitcoin awards when you spend money in a store. When you make a purchase, you’ll instantly be rewarded with a fraction of what you spent. The rewards will be in the smallest units of Bitcoin – satoshis.

Now, it’s perfectly understandable for new users to be apprehensive about some of these apps, considering the rampant fraud in the crypto world. Such hesitation is completely understandable. And the good news is: there are so many legit apps out there. 

Many people may be familiar with renowned cashback services like Rakuten, Honey, Ibotta, and Drop. But with the current growth of Bitcoin and other cryptocurrencies, other cash rebate apps are fast emerging.

In this article, we will look at legitimate apps that one can use to earn crypto rebates.

#1. Lolli

Lolli stays true to the ‘spend less shop more’ mantra. With this app, you can earn free Bitcoin when you shop online from over 500 participating sites. You can shop for various products ranging from clothes, stationery, card decks, toiletries, food, etc., and earn bitcoin while at it. 

This app has attracted a large user base due to its user-friendly interface, the variety of brands supported, and easy installation process. The only problem is that the application is currently only available on the desktop.

Some of the brands that reward clients with cashback rewards include: 

  • Travel industry – booking.com, Expedia, etc.
  • Food providers – Coffee Bean and Tea Leaf, Postmates, etc.
  • Fashion and beauty – Sephora, Nike, Topshop, etc.
  • Entertainment providers – Groupon, best buy
  • Services industry – GoDaddy, Udemy, etc.

These are but some examples. Many other vendors support Lolli. 

You can earn up to a max of 10% in cashback on your purchases. You only need to download the Lolli desktop plugin on Chrome to get going.

#2. Pei

Pei is a mobile app available on Android and iOS devices, and it is free to download. It allows you to earn BTC when you use your credit/debit card to complete a transaction. Apart from BTC, you can earn USD and gift cards through the use of your affiliated card.

This app is racking up a lot of attention because of its unique feature: double-dip rewards. This means that apart from amassing cashback, you can also earn points in Pei. These points are redeemable on their website, and you can use them to check out your shopping cart.

After downloading the app, you can register, attach a chosen card, and generate awards from purchase payments. Rewards are not credited to your account immediately. Each payment from your affiliated card that is reflected in your app provides points to your available total. The app has indicated support for other currencies in the near future (apart from BTC and USD). 

#3. Foldapp

This app is unique in the sense that you can earn rewards both online and offline. Foldapp offers you a prepaid program that you can use to purchase gift cards from a specific retailer. What’s even more interesting? You can do this before making an actual purchase. These gift cards allow you to earn bitcoin rewards and cashback. With this app, you can acquire crypto coins when you’re actually shopping in retail shops. 

#4. Bitcoin Rewards

This app allows you to earn free Bitcoin whenever you shop online. The catch is, you can only earn BTC from brands that have partnered with BTC Rewards. That’s no cause for worry, though, as a huge number of brands are participating. Also, along with BTC, you can choose from BCH and BNB to complete your payment. 

The app constantly updates on social media platforms with the latest cashback offers and other gift coupons associated with Bitcoin. Currently, these include discount codes and cashbacks from Rosegal and Contiki.

#5. Coinseed

Amazon and eBay are renowned online retail shops. With this particular app, you can earn crypto cashbacks from shopping in these virtual stores. Using the app, you can also earn Bitcoin when shopping at Walmart. 

Coinseed is considered one of the best platforms for earning cashbacks, mainly because of its automated investment and trading features. These features set it apart from other apps.

#6. Captain Bitcoin

There is nothing as irksome as experiencing pop-up ads while browsing the internet. With this app, you can turn around the annoyance and actually earn from watching short ads. These advertisements are usually from established companies. 

#7. Earn.com

With this app, you can earn cashback rewards by participating in tasks that take less than five minutes to complete. The tasks can include; taking part in studies, filling questionnaires, or responding to emails.  

Once completed, Earn.com allows you to get a small amount of Bitcoin. You can easily cash out your BTC earnings and spend them freely.

Users can set up an Earn.com public profile, which will enable them to receive messages and tasks from anonymous contacts.

#8. Stormshop

This platform can be easily accessed through Android and iOS devices. It is available in more than 187 countries and is connected to more than 400 merchants.

Cashbacks and rewards are available in various cryptocurrencies like ETH, LTC, DAI, Storm, among many others. You can earn cashback rewards through shopping in participating retail stores.

#9. CoinRebates

With this app, no matter how much you spend, you will earn fixed cashback awards. This platform is quite popular because of the number of businesses that have partnered with the app since its debut. Some of the partnering companies include; Walmart, Macy’s, and Expedia. 

Depending on the company you decide to do retail trade with, cashback ranges between 1.5 and 20%. Companies like Udemy provide 24 Bits, i.e., the platform’s currency, with each dollar you spend.

CoinRebates is not limited to U.S. users – European residents can equally enjoy the platform. Anyone can earn from the app as long as they are capitalizing on the rebates, and the competing stores can provide shipping support to the user’s country of origin.

Conclusion

Crypto cashback apps offer users a variety of options for earning crypto rewards. You can earn crypto by just watching ads, completing simple tasks, shopping, and more. And the icing on the cake is that these apps are simple and straightforward to use. That said, go forth and take advantage of this easy way to earn crypto. 

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Cryptocurrencies

Bitcoin is Booming, But Which are the Best Altcoins to Own?

In the midst of the current Bitcoin bull run, it is difficult just to look any other way. After all, it is this pioneer crypto that has been hitting the headlines for weeks now. Both speculators and analysts have said the rally will continue. Also, there’s a likelihood that BTC will surpass the $20,000 mark, judging by recent performance and investor sentiment. In short, all our eyes have been glued to BTC, which has delivered a spectacular show hitherto. But, remember, investors must diversify. 

 Some spectators wonder whether it is still viable to jump in, naysayers are waiting for the crash, and risk-takers are diving deeper into the frenzy and multiplying their investments by the minute. Whichever your case, there are alternatives worth considering. 

Today, we take a look at some of the most promising altcoins, at least the ones you can bet your dollars on in the coming months. 

#1: Monero (XMR)

The rate at which Monero is rising is monumental – well, not price-wise, yet – but in terms of interest. Year-to-date 24-hour trading volume has increased by 20 times. The interest investors, regulators, and other stakeholders expressed in Monero in 2020 confirm that good tidings are in the offing. 

While Monero prices have not grown monumentally, they have still grown anyway. At some point in March, the coin was exchanging at $37. However, on pulling up its socks, it rose steadily beginning April to its current $130, a 400% gain. Let’s just say this is a modest gain given that the crypto has much more potential. 

Also worth mentioning is that Monero also recently reached $139, its 2-year high. Combining this with the fact that the crypto has become the center of attention among regulators, we are likely to see even higher volumes, which will boost speculation and eventually impact prices. 

Of course, things could go wrong and cause the crypto to crash, particularly if the Department of Internal Revenue succeeds in cracking its privacy – something they have been pursuing. Until then, XMR is one altcoin you cannot afford to lose sight of.

#2: Ripple (XRP)

Ripple has had an advantage over other altcoins since its inception, and that is because it was designed for real-time payment settlement. Essentially, Ripple is a platform that financial institutions can use to send money across borders with the following major advantages:

  • Lower costs than the traditional SWIFT system
  • Faster (real-time) settlements, compared to the traditional system that takes several business days.
  • Has all the security mechanisms of blockchain technology 

This background tells us that Ripple is a solid project, and we know solid projects have the growth potential – there’s no guarantee, but there’s hope.

Hope aside, Ripple’s native currency XRP has been performing modestly for the better part of 2020, trading between the $.013 – $0.69 range. If you compare it with Bitcoin’s performance, you’re likely to undermine Ripple’s year-to-date growth. But think again – since the 2017 crypto bubble, XRP has never reached the heights we see now. To be fair, surpassing the 2-year high is a milestone that signifies that this cryptocurrency is rising. 

You can choose to wait and see how things turn out, but it’s best to keep close tabs on XRP. 

#3: Fusion (FSN)

Fusion is one of the most underrated cryptocurrencies. Although investors are yet to see Fusion’s potential, there is an indication that this crypto will grow. 

Fusion’s potential lies in the adoption of DeFi, which is already on the rise. The crypto’s developers are working on several innovations that are set to transform DeFi. One of the most notable is the WeDeFi project that seeks to bring DeFi to the common person.

Fusion provides investors with different and exciting investment options. For instance, the crypto supports passive staking, which is only available in proof-of-stake crypto networks. With this investment option, you delegate your savings for verifying transactions. In proof of work networks, those with more tokens have higher staking power. Leaving aside the intricacies, Fusion can enable investors to earn by basically doing nothing. 

At the moment, the crypto is undervalued. It ranks at around 460 by market capitalization. This valuation will certainly change, especially as DeFi picks up pace. Meanwhile, you can invest in Fusion now while the prices are still low ($0.26) at the time of writing. When daily trading volumes increase as a result of DeFi’s mass adoption, consider this opportunity gone. 

#4: Ethereum (ETH)

Historically, Ethereum has been Bitcoin’s most fierce competitor. Best known as the king of smart contracts and decentralized apps, Ethereum has worked its way up to become the second-largest cryptocurrency by market capitalization. 

Ethereum’s tech and investment potential is its backbone. Developers have used the crypto’s facilities to build a wide range of applications, all of which add value to the network. However, it is the upcoming launch of Ethereum 2.0 that we should set our eyes on. 

On December 1 at noon, Ethereum will change from proof of work to proof of stake (no more mining). First, whenever cryptos undergo significant changes, a frenzy is created, and prices surge as investors scramble to be part of the revolution. Secondly, the staking system will encourage investors to lock their funds in the network to earn returns from verifying transactions. Since a higher stake gives one more power, investors are likely to lock more ETH to the network. The result? An inevitable shortage and a consequent price surge.

Unless something goes wrong, ETH will keep rising further in the coming months. 

#5: Litecoin (LTC)

Litecoin is among the oldest altcoins. It was created shortly after Bitcoin as a lite version of the pioneer crypto. As such, it is very similar to Bitcoin. The main difference between the two is that Litecoin is less resource-intensive, and this trickles down to users as faster and cheaper transactions. 

Like BTC and other major cryptos, Litecoin has shown stable upward growth in 2020, especially from April onwards. In November, it reached $86, its highest in the year. The crypto’s performance seems to be following Bitcoin’s performance, albeit not so closely. Even so, since the trend is upward, it is a sensible alternative at the moment.

There you go, folks! Take some time to monitor each of these from close quarters to find out which one works best for you.

Final Thoughts

While Bitcoin is currently grabbing headlines for its stellar performance, it is not the only cryptocurrency worth investing in. Monero, Ripple, Fusion, Ethereum, and Litecoin are equally savvy alternatives. These altcoins have a good track record, have solid projects behind them, and are currently performing well. Whether you’re looking for short-term or long-term investments, you now know which are the best altcoins to own.

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Crypto Daily Topic Cryptocurrencies

Top 5 Trends Driving the Crypto Market Right Now

2020 was an interesting year for crypto. From the market crash in March to Bitcoin rebounding past $15k for the first time in two years, to DeFi exploding than ever before, this was not your average year for the industry. But beneath these events were unseen undercurrents that were driving everything. 

As you already know, the crypto market moves to its own beat. It all comes down to supply and demand – the causes notwithstanding. This is starkly different from traditional currency, whose value is set and controlled by central banks. Other factors are artificial actions such as the stimulus protocols being conducted across the globe right now to ameliorate the economic shock of the Covid pandemic. 

What’s the point? That the crypto market is interesting, and the events driving it one side or another are worth a closer look. A lot is happening behind the scenes: from a change in attitudes to stablecoins to new and bold crypto products. 

This article looks at the trends that are currently driving the crypto market and how. 

#1. Stablecoins

Stablecoins are a special kind of cryptocurrencies pegged to real-life assets, so they’re not subject to the wild volatility experienced by ‘normal’ cryptocurrencies. Stablecoins can be pegged to fiat, other cryptocurrencies, or exchange-traded commodities like aluminum or gold. The fact that they are attached to a fixed unit doesn’t mean that their prices never vary. Their market prices tend to fluctuate around their underlying assets. 

Stablecoins have the ability to bridge the gap between fiat and digital currencies. They provide the stability of fiat while maintaining the security of crypto. This year, stablecoins kicked off exceptionally well, recording a $90 billion transactional volume in a single financial quarter. 

As an investor, you can make money off stablecoins.  For instance, you can acquire a stablecoin for $1 and sell it on the market at a higher value of, let’s say, $1.0003. The extra amount might seem meager, but the amount of profit accrued becomes very substantial when you multiply this figure by thousands or millions. 

#2.DeFi

DeFi (decentralized finance) is, without question, one of the megatrends pushing the crypto space right now. DeFi is the idea that people can have complete financial autonomy. You know, without an interfering government or controlling bank. It’s a revolutionary idea that’s not just timely but liberating. Countless projects are now rushing to introduce new and interesting DeFi products. Things like yield farming, the latest DeFi craze, entered the crypto lexicon less than two years ago. 

The vast majority of DeFi projects are based on Ethereum. Ethereum pioneered smart contracts and decentralized applications (DApps) – which explains everything. The network’s market cap increased by 60% in Q3 2020. This growth percentage was seen by increasing market value from $25 billion to $40.5 billion by the end of September. The top 10 DeFi coins’ market capitalization by total value experienced a greater increase within the quarter. This was seen through the 345% increase (rise from $1.2 billion to $5.3 billion). The market capitalization of DeFi now accounts for roughly 12% of the blockchain’s total market value. As of now, DeFi is the driving narrative for the Ethereum ecosystem.

DeFi protocols such as Compound, Balancer, Curve, and other varied platforms are introducing new and exciting DeFi products. From staking to yield farming to borrowing, investors are rushing to DeFi to carve out financial value. 

#3. The Possibility Of A Cashless Society

One of the biggest upheavals to the world’s normal order in recent times was the Covid pandemic. In the blink of an eye, the pandemic had interrupted everything we hold dear – social life, economies, and yes – deeply held attitudes. Naturally, people began to rethink a lot of things. 

What previously seemed odd was now the norm. Working remotely? Check. Crypto payments? Check. Now, being forced to do things differently can sometimes be a good thing, which is the case with these scenarios. And it seems like these practices will remain even after Covid is long gone. It wouldn’t be an exaggeration to say that a cashless society is a possibility in the future. 

Meanwhile, the blockchain space is expanding quickly, as applications for interacting with crypto also advance. These days, you can easily buy crypto with just a credit card. This is a huge leap from the early days when you had to meet with a stranger to purchase crypto (and we all know that’s a risky proposition). Also, it’s not just the young and savvy population that’s embracing crypto. It’s institutional investors too. 

#4. Derivatives

Derivatives are another trend driving the crypto market. Bitcoin derivatives dominate the market at the moment, but Ethereum is catching up. This is a strong showing of Ethereum, and it hints at a derivatives economy buoyed by Ether and possibly other crypto’s derivatives. It also means both individuals and institutional investors are beginning to see Ethereum as a worthwhile investment and trading asset. Another thing – it shows that the crypto market is maturing. When other cryptocurrencies join Bitcoin in the derivatives club, it will be a diverse and more resilient market. 

#5. Cryptocurrency is becoming big

Crypto is probably enjoying its highest review ratings in years. Bitcoin, the pioneer of them all and the most successful one, is not viewed as a bubble anymore. And its market cap has exploded to eclipse that of superstar companies such as Coca-Cola and Intel. Also, crypto’s underlying tech – blockchain, is now being embraced by a multitude of industries. Like we’d mentioned earlier, institutional companies are getting involved in crypto more than ever before. 

Closing Thoughts

When we study the undercurrents of the crypto market more closely, it’s easier to tell which direction it’s veering to. And the current trends indicate nothing but good things for the future of crypto. Stablecoins are roaring, as is DeFi, and indications point to Bitcoin sharing the derivatives spotlight with other cryptos in the near future. In short: these are the trends driving the crypto market right now. 

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Crypto Daily Topic Cryptocurrencies

Learn How To Understand Crypto Market Data and Become a Pro

Newcomers in cryptoverse can be easily baffled by the myriad of things to learn and understand. ‘Ethereum has hit the highest 3-week close since the last bull run,’ and other such phrases are common in this industry. Then, there are charts that track the movement of different performance indicators in real-time. To add to the confusion, experts often differ on investment advice and the impact of various events in the industry. 

This article will help to simplify some of the common crypto market issues you will need to understand. It’s by no means a comprehensive guide for trading crypto, but it will give you that head-start you need to get going. 

Crypto Buzzwords

Buzzwords are a common feature of the crypto market and a common source of confusion at that. Normally, a well-written crypto article will not be without a dozen buzzwords. Some writers use crypto jargon purely for flair. But we will agree that these catchphrases have a way of hammering in opinions that would otherwise fly under the radar. 

To understand crypto market data, it is important to familiarize yourself with the industry glossary. There are a couple of basic phrases like bull and bear markets, trading sideways, support and resistance, candles, etc., that you may need to learn. You can always refer to your glossary when analyzing market data, but don’t you think the market data is already complex enough? You can make things easier by learning some market terminology beforehand on web resources such as Coinmarketcap‘s glossary page.

Market Indicators 

What is a crypto market without indicators? Due to the volume of activity on such markets, it’s impossible to track them on individual trades. Therefore, pros use indicators as quick reference guides for reading what the markets are trying to say. There could be a bunch of indicators used in crypto markets, but these are the most useful ones:

  • Price – It shows how much a crypto asset is trading against the dollar or another base currency. By itself, price doesn’t matter. What’s more important is price movement – that is, the change in price over a certain period (typically 24 hours). These changes are usually marked by opening and closing prices.
  • Market capitalization – It shows the total value of assets in a given market. Most investors believe a high market cap is a characteristic of a low-risk-low-return portfolio. 
  • Volume – It shows how active investors are buying and selling assets. High volumes are usually indicative of a ‘hot’ crypto.

Understanding Charts

Charts are an essential part of representing market data. Whether you’re looking at crypto or forex markets, these graphical data representation tools are inevitable. While newcomers may look at charts as beautiful pictures, market pros track these graphics continuously to know how different assets perform against certain indicators. 

Charts are pretty easy to understand. Basically, they show a certain aspect of a crypto is changing over time. There are several important charts that you need to be aware of:

  • Price charts – Price charts are the most common charts you will see when reviewing crypto market data. They provide you with real-time information regarding the price movement of a given crypto. Most price charts are simple X-Y graphs with day/month/year on one side and prices on the other. You can find easy-to-interpret price charts, among other sites, on Yahoo Finance or Tradingview. As a bonus, most charts are interactive – that is, they allow you to adjust the period for which you wish to view, zoom in to a specific day, and so on. It is highly unlikely that you will experience difficulty in interpreting price charts.
  • Fear and greed index – The fear and greed index seeks to represent the general level of fear or greed among investors. Investors like to give off the vibe that they’re purely analytical human beings, but the truth is they’re pretty emotional. And that’s why when fear spreads in the industry, investors pull out of the market. If we were to express fear and greed mathematically, these two emotions would be inversely proportional to each other – as fear rises, investor greed declines, and vice versa. You can find a good fear and greed index chart on CNN Money, where the index was invented. Well, this is the original index, which was customized for capital markets investors. If you want one specific to crypto markets, you could check out the chart on Btctools.com. 
  • Market cap charts – Market capitalization tells you how much worth is a given market, in total. Simply put, multiply the price of a unit of an asset by the total number of assets outstanding, and you get the market cap. You need to understand market cap charts because they give you an idea of how stable that market is. Generally, traders assume that markets with a high market cap (such as Bitcoin) are less conservative and thus less risky in the long run. 
  • Volume charts – A volume chart shows the level of trading activity in a given market. High volumes indicate positive investor sentiment. And just like economic inflation, rising market volumes suggest that things are looking up for that crypto. 
  • Combined charts – These charts put all the indicators (price, volume, market cap) on the same diagram. Each indicator is then marked by a differently-colored line and a key provided. 

Where to Get Reliable Market Data

Getting reliable market data is key to understanding crypto markets and making the right investment decisions. When looking for information, go for reputable sources such as Investopedia, Coinmarketcap, Coindesk, and others. Some data sources may be outdated or just plain incorrect. You know how non-factual data can be misleading. So, when analyzing crypto market data, choose reliable sources. 

Influencer Opinions

Listening to industry influencers is also a great way to understand crypto markets. The opinions of such people have the power of swaying investor sentiment. For instance, if Richard Branson says that he thinks Bitcoin is a ‘get-rich-quick scheme,’ some investors may back off a little. 

Now, you listen to influencers to get pointers on what to look out for. Most of the time, influencers tend to raise controversy, perhaps, just for the sake of it. So, don’t take their word for it – always research wider. 

Final Thoughts

Understanding crypto markets isn’t that hard after all. If you learn a few buzzwords, understand market indicators, know how to read different charts and where to get reliable market information, you could very well soon sound like a pro investor. This was just a basic guide to understanding crypto markets. Always read wide and keep informed. Good luck.

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Crypto Daily Topic Cryptocurrencies

Read This Before Investing in a DeFi Project

Decentralized Finance (DeFi) is a system of financial applications that are powered by smart contracts. Defi has exploded in popularity because of its unprecedented features on cryptographic security, fraud-free transactions, and autonomy. Whether it’s investing, loans, insurance, banking, lending, and staking, pretty much every financial offering exists in DeFi. 

The space’s dramatic growth has led many investors rushing in to get a slice of the DeFi pie. But just like with crypto investing, you can gain some handsome profits, but you can also incur devastating losses, especially if you’re not careful. 

This article will guide you in what you need to do before dipping your feet in the DeFi investment waters. But before that, let’s look at what investing in DeFi entails. 

DeFi Investing: The Basics 

There isn’t much difference in the investment opportunities offered in the traditional financial setup and Defi. Decentralized lending, for instance, follows the same principle as lending in centralized finance systems, except this time, smart contracts are involved, and the returns are invariably better. Smart contracts are used to hold collateral from borrowers and also automatically deliver accrued interest to lenders. There’s also ‘staking.’ Staking in DeFi is when you lock up your crypto and get the right to participate in a network and, in some cases, earn rewards for depositing your crypto. 

We also have ‘yield farming’ in DeFi. Introduced by Synthetix and popularized by Compound, yield farming involves locking up your crypto assets in a project’s protocol and earning rewards. 

Defi investors use their insight to spot lucrative opportunities, just like traditional finance investors capitalize their knowledge on assets such as real estate.

With that, let’s get straight to:

What you need to do before investing in DeFi. 

#1. Carry out extensive research

Before you invest your hard-earned money in a Defi project, it helps to do your research. To verify whether a project is legit, head to Google, and type the project’s name followed by the word “scam.” If this project is a scam, someone else might have already flagged it.

You might have typed the name of the project alongside the term “scam,” and nothing has popped up. This does not mean that the project is completely legitimate. You can use Defi tokens and protocols, which anyone can view since the project is open-source. If you can, evaluate the project’s codes to see if the project is genuine. This method particularly helps if you have programming skills or know your way around smart contracts. 

#2 Observe the number of users and what they are saying

The more the users on a blockchain project, the more the value. With blockchain projects (mostly those on Ethereum where several Defi projects are built), there is real-time reporting. This can be done through Etherscan.io, which is for raw data, or Dune Analytics, which focuses on user-friendly reports. With these tools, you can look at the total users in a given Defi project coupled with the increasing number of users. The goal is to see real people using these protocols. Keep in mind that some of the data you see can also be corrupted as an elaborate ploy to lure in unsuspecting users. These accounts should belong to quality users, and their growth should be quadratic. If you observe such users utilizing the protocol, then it’s genuine.

Also, be keen on what trusted security professionals are saying and writing about these projects. Defi projects typically subject their smart contracts to manual security audits with an air-tight reputation. Some of them include Certik, Quantstamp, and OpenZeppelin.

You can also check what people on Twitter, Reddit, and DeFi-related sites and forums say about the project. You can also check whether the project is recognized by Defi Prime, Defi Pulse, and Defi Market Cap. 

#3. Verification by Etherscan

Once a project has verified their smart contracts on Etherscan, a unique code will be availed. When viewing the contract, the code you see is the same code you ought to get when using it. Of course, this does not mean that your project is invulnerable to hacks or it’s not a scam. Still, having a code that can be publicly assessed without the fear of the code being changed is vital.

ETHProtect is a service provided by Etherscan that enables people to report suspicious activities on the Ethereum blockchain. A “Red Shield,” issued by Etherscan’s security analysts and the Taint Inference Analysis Engine, is something to watch out for when looking at Defi projects. These usually mean that people have launched a complaint against a certain project. When you see a Red Shield attached to a project, know that it’s been identified as a scam. 

#4. Watch out for fake projects

Many fraudsters are ahead in the game – they create fake projects with legit-sounding names. But when you look more closely, you’ll find that the project’s links are either dead or lead to nowhere. Or it may have a website, but it looks all spammy, like requiring people to sign up for freebies – and other suspicious activities. 

You can also know if a project is legit by checking what exchanges its tokens are listed on. It’s almost impossible to find a scam project listed on reputable exchanges like Coinbase, Binance, Huobi, etc. Instead, fake projects are listed on decentralized exchanges or little-known centralized exchanges. 

Closing Thoughts 

Investing in DeFi can be lucrative, but watch out for the loopholes. The crypto space is full of scammers looking to make a quick buck at the expense of unsuspecting users. Luckily, there are ways to identify a fake DeFi project way before you can be duped to invest in one. Also, you can always analyze a project’s code for the tech-savvy investors and determine if it’s legit. Also, don’t forget the first rule of crypto investing: don’t put in more money than you can afford to lose!

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Cryptocurrencies

Forex or Crypto, Which Way 2021?

It is not strange for beginner investors to conflate forex and crypto trading. Although they are similar in some ways, these two industries have significant differences. 

As the new year approaches, new and seasoned investors alike need information on how the different markets are likely to turn out as we expect each market to behave uniquely. Some cryptocurrencies tend to boom in the last quarter of the year, as we’re currently seeing with Bitcoin. On the other hand, currency exchange pairs tend to be more affected by geopolitical and economic happenings. 

While this article does not intend to claim that one is better than the other, we will highlight the key similarities, differences, benefits, and risks of both forex and crypto, with a focus on recent market trends. Hopefully, you will determine which investment will be suitable for you in the coming year.

What is the Forex Market?

The forex market is a decentralized market where foreign currencies are exchanged. Being decentralized means, there is no single global authority that controls the trade. However, the central banks in each country have a major influence on what prices their local currency fetches against foreign currency. This is how they balance imports and exports to keep their economies happy.

Anyone can participate in forex trade because it simply involves buying and selling currency, which most banks accept. Forex trading is usually done through FX brokers. Many online forex brokers such as IQ Broker offer convenient forex trading. With extensive research, some practice, a little courage, and luck, you can reap big trading forex

What about Crypto Trading?

Crypto trading involves buying and selling cryptocurrencies – much like with forex. This activity happens on crypto exchanges like Etoro, Coinbase, and Binance. Like forex trading, crypto trading is usually done through brokers or exchanges, giving it as much flexibility. Also, anyone can be part of over the $250 B that changes hands daily (as of November 2020) on different crypto exchanges. 

Forex and Crypto: Similarities

There’s so much similarity between forex and crypto trading that you’d be forgiven for conflating the two. Let’s look at some of the top similarities.

  • You need to be knowledgeable enough to engage in either. Otherwise, you’d be setting yourself up for losses.
  • Market forces, including investor sentiment and supply/demand, determine how both forex and crypto prices shift. 
  • One can close a trade in a relatively short time in either of the two.
  • Both involve buying and selling instruments, including currencies, crypto coins, tokens, futures, and other complex financial assets.
  • On the same note, both of these markets have different players. These include institutions and individual players, each looking to make some profits out of the market.

Technology, more so information technology, plays a crucial role in expanding these two markets. Although the forex market came in before the computers and the internet, forex is what it is today thanks to information technology. On the other hand, we could not be talking about Cryptocurrencies without the internet and computers.

Differences between Forex and Crypto Trading

Several differences distinguish forex markets from crypto markets. 

  • Forex markets usually operate during business days, typically Monday-Friday. On the other hand, the crypto market is on 24/7, 365 days a year. This gives crypto some edge when it comes to trading flexibility. 
  • Forex markets are inherently more stable, thanks to the involvement of central banks. Crypto markets, on the flip side, are notoriously volatile. Whether this is an advantage really depends on an investor’s point of view. 
  • Crypto markets tend to be riskier than forex markets, mainly due to their higher volatility. 
  • Forex trading is more regulated and protected, which means it can pose less trading risk. However, less risk means fewer returns.
  • With forex, you do not need a wallet or the technicalities that crypto trading comes with. All you need is an account to deposit funds and you are ready to go.

Which One Is Better?

Now, investors themself can best answer this question. Generally,  each market has unique characteristics that will appeal to some investors and not others. Still, the following factors can help you in determining which one would work better for you:

If you are more risk-averse, forex trading may be your go-to option. As we said earlier, crypto markets can be very turbulent. For instance, Bitcoin has been moving by even up to $2,000 USD a week, especially since October. No central bank would sit and watch such sudden price movements on their forex markets. So, if you thrill in dramatic movements in return for higher rewards, crypto sounds better.

The crypto market (led by Bitcoin) is currently on the bull run. The time is ripe for reaping huge from crypto. We’re not saying that crypto is now a get-rich-quick market. But all indications are that it is presently the most lucrative. On the flip side, many investors will lose big if the market goes on a free fall (an inevitability). Thus, short-term investors may find crypto more suitable in the coming months. 

If you’re looking to grow your investment over a long time, say beyond 2021, crypto trading may give you a better platform. While forex pairs usually oscillate between stiff margins, cryptocurrencies can rise exponentially over time. This growth depends on how well the crypto’s backing project is implemented. However, you can multiply your investment by investing in crypto with the potential to grow – something that’s not possible with forex.

Now that you have more clarity on the way ahead, what would be the next steps? If you prefer to venture into forex trading, you need to find the best brokers. Check out our reviews for some of the top brokers you can choose from. On the other hand, if you prefer the ‘wild west’ crypto market, you can choose to trade with brokers that support crypto or opt for crypto exchanges. 

Final Thoughts

Both forex and crypto trading offer investors opportunities for growing their investments. However, each market has its own characteristics. From a returns viewpoint, the main difference between the two is that forex offers moderate profits while crypto trading can have much higher returns. The bottom line is, forex trading favors investors who prefer less risk, while crypto is for more adventurous investors. Whichever investment you pick in 2021, ensure that the market’s risk and return profile are to your preference. 

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Crypto Daily Topic

Top Liquidity Pools for Earning on the Go 2020

Liquidity is a crucial aspect of any trade, much less the DeFi trade, which is notoriously volatile. Liquidity is how fast an asset can be converted into cash in the market. In DeFi, liquidity refers to the availability of liquid assets in the market.

DeFi is now booming more than ever before. New projects are being launched nearly every week – with each one bringing closer to the decentralized finance dream for millions across the world. Suffice to say, DeFi is inevitable. As such, it’s important to know the most important concepts of the idea, as well as projects that are helping advance those ideas.

This article talks about liquidity pools and some of the best of them in DeFi in 2020.

What are Liquidity Pools?

In DeFi, liquidity pools are tokens that are locked up in a smart contract. They facilitate efficient trade by providing liquidity and are exploited largely by decentralized exchanges (DEXes) to allow for seamless trade and prevent massive price swings.

Projects like Bancor were the first in the door but were quickly followed up by versions with trendier options such as Uniswap, Balancer, Curve, and so on. Balancer even showed the DeFi world that a liquidity pool could have more than just two assets in a single liquidity pool at any given time.

Liquidity pools eliminate the possibility of manipulation that can occur in centralized order books. They also lower gas fees, leveling the playing field for all participants. Also, liquidity pools allow liquidity providers to earn rewards. As such, liquidity pools are an excellent way to earn passive income.

With that, let’s get to:

Best liquidity pools in 2020

#1. Uniswap

Uniswap is one of the earliest liquidity pools and one of the best in terms of offerings. It’s an Ethereum-based token exchange platform that supports 50% Ethereum contracts and 50% ERC20 contracts. On Uniswap, exchange ETH for any ERC20 token in a peer-to-peer and decentralized fashion. The platform is open-sourced, meaning you can create an exchange pair in a pool of your choice for a token of your choice.

You can deposit crypto and receive a Uniswap token in return. For instance, when you deposit USDT, you’ll receive an equivalent amount in UNI (Uniswap’s native token). A liquidity pool on Uniswap could be yDAI+yUSDT+yTUSD+yGUSD, LGO-WETH, etc.

#2. Curve Finance

Curve finance is a decentralized liquidity pool running on top of Ethereum. Curve also supports stablecoin trading with low slippage. The platform started out without a native cryptocurrency but has just launched one – CRV.

Curve currently supports several pools, including yDAI, yUSDC, and yUSDT. It also supports stablecoin and asset swapping with Compound, PAX, etc.

#3. Balancer

Balancer is a price tracker, liquidity provider, crypto exchange, and decentralized asset manager based on Ethereum. It allows traders to exchange various currencies with minimal slippage. As well, anyone can add liquidity to a customizable pool and earn returns.

Balancer supports up to 8 crypto assets, including USDC, DAI, and ETH. In a Balancer liquidity pool, you can have up to 8 tokens at any time. For example, a pool can have several tokens with their respective percentages adding up to 100%.

#4. Bancor

Bancor is an Ethereum-powered protocol exchange that lets you trade between different cryptocurrencies. Bancor supports pooled liquidity, too, and utilizes an algorithmic market-making mechanism to ensure liquidity and keep an accurate report of crypto prices.

Bancor’s liquidity pool is known as the Bancor relay. The Bancor token is a stablecoin that helps mitigate liquidity volatility. Bancor supports liquidity pooling for the BNT token, ETH, ERC20 tokens, and its stablecoin USDB. Using the BNT token, users can swap tokens between other blockchains.

Currently, the Bancor network supports EOS and Ethereum blockchains but can theoretically be adopted by any open-source application that enables value exchange.

#5. Kyber Network

Kyber is another Ethereum-based liquidity and exchange protocol that allows decentralized applications to provide liquidity for users. The network features an ecosystem of vendors, wallets, and users who can just swipe and instantly send/receive tokens in a single transaction.

Kyber features a native utility token, KNC, which rewards liquidity providers and facilitates the network’s governance. As such, token holders can stake the token to take part in governance and earn crypto.

#6. Convexity Protocol

Convexity is a protocol built atop Ethereum’s blockchain that allows users to deposit liquidity and earn returns. It also provides users with an interactive interface to trade in fungible ERC20 tokenized options known as otokens. Users can create collateralized options contracts and sell them in the form of tokens, therefore earning a premium on their collateral.

#7. ICTE Protocol

ICTE protocol is a liquidity pool and a cross-blockchain inter-exchange protocol. ICTE connects both local and web-based exchanges, intending to solve scalability, security, and custodial issues while offering liquidity solutions to stockholders.

#8. KeeperDAO

KeeperDAO is a DeFi protocol based on Ethereum. It’s an on-chain DeFi underwriter that also acts as a proxy volatility fund. KeeperDAO also provides backstop liquidity to support on-chain lending and synthetic asset protocols. KeeperDAO interacts with other DeFi platforms such as Compound to ensure liquidity providers are rewarded with interest at all times.

Closing Thoughts

Liquidity pools provide much-needed movement in decentralized exchanges, aiding the seamless trading of currencies. They are also one of the many DeFi ways individuals can earn through DeFi. These liquidity pools, and others not on the list, are one step closer to financial autonomy for DeFi fans everywhere.

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Cryptocurrencies

What’s Vite (VITE) All About?

Ethereum introduced smart contracts, and 5 years on, it’s still the premier destination for many developers. This is because the network still wields a lot of clout as the pioneer of the technology. However, the Ethereum network is far from perfect, and it faces some challenges like lack of scalability and higher fees that make things hard for developers. 

Countless crypto projects that aim to provide the same services as Ethereum have surfaced. Many, if not all, claim to fix Ethereum’s mistakes. One of the latest is called Vite, a project that utilizes a Directed Acyclic Graph (DAG) to confront the problems faced by traditional blockchains. 

This article will look at the Vite platform and what it’s really all about. We’ll also discuss where you can purchase the VITE token. 

Breaking Down Vite

Vite is a Directed Acyclic Graph smart contracts’ platform complete with a Snapshot Chain structure to facilitate free transactions and optimize speed, reliability, and security. The Snapchain uses a Delegated Proof of Stake (HDPoS) for network consensus, with supernodes getting rewarded with staking rewards but no transaction fees. 

Vite’s virtual machine is compatible with EVM and uses the Solidity ++ programming language. The network’s native token, VITE, facilitates simple token transactions and smart-contract executions. Instead of gas, users stake in the token to get ‘transaction quota,’ allowing them to carry out transactions. Stakers with unused quotas can lease it to decentralized apps and get tokens in return. The token is also used to vote for block producers. 

Products by Vite 

Vite has rolled out several products, with the most significant ones being a decentralized exchange (ViteX), a payments platform (VitePay), and a platform for blockchain applications (VitePlus). Let’s look at each more closely: 

ViteX: a decentralized exchange (DEX) with an on-chain order book and matching tool. ViteX currently supports over 20 crypto assets, including the most popular ones like Bitcoin and Ethereum.

VitePay: a fast and zero-fee payment solution. Users will pay for products and services via the Vite wallet, while merchants receive payment nearly instantly and with zero fees. VitePay is integrated with the e-commerce platform OpenCart, and you can use it at the official Vite store.

VitePlus: an enterprise blockchain solution for institutional entities. For instance, Vite has created an app known as SyraCoin that rewards city housing fund donors with blockchain-based coupons redeemable for various products/services.

Vite’s Decentralized Exchange (DEX) 

Vite’s decentralized exchange (Vite DEX) is a digital assets trading platform that features the following characteristics: 

#1. True decentralization and high security

Vite’s decentralized exchange realizes transaction matching through blockchain-based smart contracts. Users are in charge of their private keys and hence funds. 

#2. High performance, better trading experience

Vite powers an environment for high transaction throughput with near-instantaneous confirmations and zero transaction fees.

#3. Dividend earnings

ViteX provides many ways to acquire coins, including trading, staking, and listing.

#4. Transparency

Everything is done transparently, from the creation of a token gateway to order book info to token forging.

Community Strategies of Vite

The Vite team will implement several growth strategies, including the following: 

  • Adding more exchange operators to the platform who will autonomously list coins and contribute to the growth of the Vite community
  • Integrate more chains into the Vite wallet
  • Attract non-crypto users after deploying VitePlus
  • Maintain an active online and offline engagement with the community
  • Conduct monthly AMAs for both the technical and non-technical audience

Future strategies include: 

  • Get into commercial partnerships with more crypto-fiat payment processors
  • Deploy a one-step DEX technology that will allow people to create their own decentralized exchanges
  • Attracts more customers by launching more DeFi applications on Vite Wallet. This will provide users with more opportunities to borrow and lend crypto both within and outside the Vite network
  • Launch an Ecosystem Incentive Program that will support developer projects
  • Update the developer toolkit and host both physical and virtual developer conferences
  • Begin a blockchain debate podcast to spread the word on Vite and blockchain in general

Token Supply Distribution

The Vite token was distributed in the following manner: 

  • Private sale tokens: 40.43%
  • Marketing tokens: 10%
  • Ecosystem development tokens: 23.5 7%
  • Team tokens: 20%
  • Airdrop tokens: 5%
  • Advisor tokens: 1%

Vite Token Tokenomics

As of October 22, the VITE token traded at $0.018118, with a market cap of $8,554,358 that placed it at #567 in the market. Its 24-hour volume is $479,370, while its circulating and total supply is 472,148,102 and 1,004,719,212. VITE’s all-time high was $0.0114875 (July 18, 2018), while its all-time low is $0.005328 (March 13, 2020). 

Where to Buy and Store VITE

You can purchase VITE token from any of several reputable exchanges, including Binance, OKEx, HotBit, Bittrex, Bilaxy, and of course, ViteX. The token is listed as a market pair of USDT, BTC, ETH,

Vite provides their official wallet – a decentralized, multi-token wallet available for iOS, Android, Web, Mac, and Windows. 

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Cryptocurrencies

Introducing ARPA: Privacy and Security for the Blockchain

One of the biggest selling points of blockchain is privacy, which is enabled by ultra-modern cryptography. That quality is only enhanced by the tech’s decentralized nature, which means there’s no single authority calling the shots. These and more features of blockchain make it ideal as a solution for countless modern-day issues. 

ARPA is a project utilizing blockchain to secure privacy-oriented computation and data sharing. It also supports high-level security, flexibility, and cross-chain interoperability.

This article looks more closely at the ARPA Chain network. 

Breaking Down ARPA Chain 

ARPA is a layer 2 solution for achieving unprecedented blockchain security. Powered by Multi-Party Computation (MPC), ARPA aims to promote data privacy while enabling its renting. The MPC protocol allows multiple participants to collaboratively analyze data while maintaining each party’s data’s privacy and security.

Entities can secretly share private data, with the accuracy of computation verified through an information-theoretic Message Authentication Code. Use cases of the native token, ARPA, include but are not limited to computation costs, security deposits, data usage fees, network governance, etc. The ARPA token is currently based on Ethereum. 

On the ARPA network, developers can build privacy-preserving decentralized apps compatible with the protocol. Use cases of ARPA a wide-ranging, but they include credit anti-fraud, data wallet security, precision marketing, key management systems, etc. 

ARPA: Features 

Privacy and security: MPC allows participants to collaboratively compute functions while ensuring the utmost privacy

Flexibility and compatibility: The ARPA network is flexible and interoperable with existing blockchains like Ethereum and EOS. 

Scalability and Efficiency: ARPA is capable of implementing fast transactions for mass adoption. It can also support off-chain, industrial-level computation, and storage.

ARPA Listed on ForTube

In September this year, ARPA was listed on ForTube, a crypto lending and yield farming platform. ARPA token holders can now stake ARPA at the platform to get a share of 500,000 FOR tokens awarded to users every day. They can also deposit ARPA and get up to double rewards. 

The ARPA token can also be used in the platform as collateral to borrow a wide range of crypto assets, including ETH, USDT, HBTC, WBTC, USDC, BUSD FAI, FOR, BNB, etc. You can also transfer borrowed assets to any address of your choice – for yield farming and other purposes. 

The current Annual Percentage Yield of lending ARPA on ForTube is 1.99%, while the loan-deposit ratio is 40%. ARPA’s listing in ForTube is good tidings for the project. It is beneficial in the long term to increase token value, ecological development, and promote community consensus. 

Community Growth Strategies of ARPA

The ARPA team is currently implementing various growth strategies. These include: 

  • Social media and community programs to spur interaction and growth
  • A global supernode program to promote ARPA on the global stage
  • Host or co-host blockchain and crypto-related events
  • Organize monthly physical meetups, starting with the China, Korea, and Southeast Asia region
  • Release multi-language technical and community updates every two weeks

Future Strategies include: 

  • Hosting blockchain in cryptography related meetups, hackathons, and conferences
  • Collaborating with tech-focused to advance privacy-preserving computation
  • Recruiting top media coverage and collaborating with research institutions, policy gurus, and thought leaders

Who’s Behind ARPA? 

ARPA is the brainchild of a global research team where every member has graduated from leading universities such as UC Berkeley, UMich, and NYU. Several team members have previously worked at Google, Uber Amazon, CircleUp, MIT Lab, and Fosun. 

The team has partnered with professors in academia, including universities such as NYU, Zhejiang University, and Hong Kong Polytechnic. The team has advisors in the blockchain space, such as former Blockstream Product Director, TechCrunch founder, and various high-level crypto investors. 

ARPA: Tokenomics

As of October 31, 2020, the ARPA token traded at $0.014210, with a market cap of $12,271,817 that placed it at #444 in the market. The token’s 24-hour volume was $5,445,575, while it’s circulating and total supply were 863,580,274 and 1.49 billion, respectively. The token’s all-time high was $0.062323 (July 15, 2019), while its all-time low was $0.003472 (March 13, 2020). 

Where to Buy and Store ARPA 

You’ll find ARPA listed as a market pair of USDT, BTC, BTC, ETH, USD and KRW in any of several exchanges, including Binance, BitHumb, Huobi Global, Coinbene, HitBTC, Gate.io, LBank, LongBit, KuCoin, Bilaxy BKEX, Balancer, CDAX, Hanbitco, CITEX, Hydax Exchange, Bibox and more. 

ARPA is Ethereum-based, so that means it can be stored on any Ethereum-compatible wallet. Good choices include MyEtherWallet, Parity, Guarda, Atomic Wallet, Trust Wallet, MetaMask, Ledger Nano, and Trezor. 

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Crypto Daily Topic

Best DeFi Podcasts for 2020

Podcasts have exploded in recent years. As a medium, they provide a platform to discuss ideas in a relaxed and open setting. And frankly, most people would rather listen or watch interesting audio or video than read a lengthy 10k word article. Another emerging topic of interest is DeFi, short for decentralized finance. Podcasting and DeFi meet at an interesting intersection in modern times, and that’s why DeFi experts are using them to connect with a curious base. 

This article brings you the best DeFi podcasts for 2020, so you can never miss what’s trending. Whether you want bite-sized chunks to introduce you to the world of DeFi or the technical stuff, this article highlights the top podcasts for just that. 

#1. Into the Ether 

This is an official podcast of ETHHub, and it focuses on the Ethereum ecosystem with the show run by Gnosis Product Manager Eric Conner and Set Protocol Product Marketer Anthony Sassano. 

The podcast is produced weekly, alongside a newsletter and a repository of documentation to increase awareness on Ethereum and Ethereum protocols.

So far, the podcast has compiled more than 100 episodes on all matters Ethereum, including Ethereum-based applications, protocol upgrades, news, and current issues affecting the Ethereum community. 

#2. Unchained and Unconfirmed

Unchained and Unconfirmed is a DeFi podcast hosted by crypto and blockchain journalist and former Forbes editor Laura Shin. Podcast offers weekly insights into current trends in crypto and DeFi as well as personalities in the space that are making headlines. 

Shin has hosted Unchained since 2016. The show features hour-long interviews with prominent personalities in blockchain and DeFi. Unconfirmed constitutes 20 minutes conversations with industry experts on newsworthy events and begun in 2018. 

#3. The Global Crypto Podcast

This podcast is hosted by James Preston, Marc Forrest, and Shaun Ritson. The team aims to be the leading source of credible DeFi news and information in South Africa, and they hope to do so with a “South African” flavor. 

The show features conversations and interviews with notable figures in the industry with the goal of informing people of the power and potential of decentralized finance and technology. New episodes are released weekly on Mondays, 6 pm (UTC).

#4. The Ethereal Podcast

The Ethereal podcast is part of the Ethereal Summit, an initiative by several DeFi technologists, entrepreneurs, and investors engaging with Ethereum and its latest developments. The Ethereal team wants to inspire a “decentralized future.” 

Hosted by @DeFi_Dad, the Ethereal podcast features interviews with various DeFi builders, as well as leaders of DeFi outfits such as MakerDAO, Nexus Mutual, SKALE, and so on. The goal is to get these figures to give first-hand insights into the challenges involved in building DeFi solutions and decentralized techs. 

#5. Abel’s Abstracts 

Hosted by ETHGlobal organizer Abel Tedros, Abel’s Abstracts focuses on conversations with various builders of Web 3.0 and DeFi solutions and updates on DeFi-specific issues and global topics like covid-19 and how they are affecting financial markets.

#6. Chain Reaction

This is a podcast by Delphi Digital co-founders Tom Shaughnessy and Kevin Kelly. Chain Reaction aims to focus on research on economic, legal, and technical issues affecting the evolvement of decentralized finance and distributed ledger technologies. 

Delphi Digital independent research and consultancy on the crypto market, and this expertise shines through on the podcast as the team explores the work of various players in the DeFi space, such as founders, investors, etc. 

#7. Zero-Knowledge

The Zero Knowledge podcast is run by Videopath and zkSummit co-founder Anna Rose and Fredrik Harryson of Parity Core. The podcast focuses on interviews with zero knowledge experts and its relation to the decentralized web and DeFi.

Research on zero-knowledge proofs is key to cryptography, enabling individuals to transact on blockchain networks privately and securely. The podcast has so far had more than 130 episodes, including interviews with tens of DeFi builders.

#8. Blockcrunch

Launched in February 2018, this is a weekly podcast featuring Spartan Capital Head Of Research Jason Choi, with a focus on providing investors in blockchain and DeFi with relevant information. 

Choi explores a rich variety of topics, including investment research, DeFi startups, exchanges, hedge funds, and generally the crypto market landscape. 

#9. Epicenter

Epicenter is one of the earliest DeFi podcasts – having come into the space in 2013. Indeed, the podcast helped popularize the term “DeFi.” 

Epicenter hosts include Adam B. Levine of Let’s Talk Bitcoin Podcast, Sebastian Couture, Brian Fabian Crain, Chorus One co-founder Meher Roy, Cosmos Research founder Sunny Aggarwal, and Gnosis COO Friederike Ernst. 

So far, the podcast has 350 plus episodes in its catalog, which includes interviews with developers and builders across the DeFi spectrum.

Final Remarks

The DeFi space is relatively new and can be baffling, especially to newcomers. Whether you’re a beginner or a longtimer in the DeFi space, you’ll find that these podcasts are definitely worth checking out. 

Categories
Cryptocurrencies

Axie Infinity: The Definitive Gaming Platform

Blockchain made a lot possible. Today, whole new worlds of gaming coupled with economic incentives are possible. People are now owning virtual real estate through which they can make a lot of money. You can also breed virtual cats and sell or trade them, making money.

And now, in Axie Infinity, gamers worldwide have the option to join a strong community (which is real, not just virtual) and play the games of their choice and earn incentives. Axie Infinity is one of several platforms that are leveraging blockchain to cultivate decentralized, secure, and economic-driven gaming platforms for users everywhere. 

This article looks at the Axie Infinity universe together with its native token, AXS. 

Breaking Down Axie Infinity 

Axie Infinity is a digital universe where people can earn tokens by playing games and contributing to the network. Players can compete, collect, raise and build kingdoms for their pets (called Axies). At the moment, players can get started by buying Axies from active players in the Marketplace. 

Axie Infinity’s assets and data can be accessed by third parties, meaning developers can build tools and new experiences in the Axie Infinity Universe. The team hopes to build a platform that’s both a social network and an economic platform with a strong community and money-making opportunities. 

Existing Products of Axie Infinity

#1. Battle 

Battle is a game inspired by games like Final Fantasy Tactics, Idle Heroes, etc. In Battle, three Axies are pitted against each other. At the start of every round, Axies are given cards according to which body parts they possess. Players will then select the cards that increase their winning chances while they carefully anticipate the cards their opponents will choose. 

#2. Breeding

Just like in real life, (Axies) can be raised and produce newborns. To avoid a flooded supply of the pets, a pet can only produce offspring seven times. A Small Love Potion (SLP) is used every time a new pet is ‘born.’ You can earn SLPs when you play the game in PvE Adventure mode or the PvP Arena. 

Axies have six body parts and a body shape. Every part has three genes: a dominant (D), recessive (R1), and minor recessive gene (R2). The dominant gene dictates which body part will be present physically on the Axie. During the breeding process, each gene stands to be passed to the new Axie. If a gene for a body part is not passed on, its body parts will be created through a randomization process. 

Specific genes have the following chances of being passed to the offspring: 

  • Dominant gene (D): 37.5%
  • Recessive (R1): 9.375%
  • Minor recessive (R2): 3.125%

#3. Land 

Land is the virtual real estate in the Axie network. Is divided into plots that act as the places on which Axies operate. Players can upgrade their plots with any of several resources and ingredients that will be discovered during gameplay. Landowners can discover AXS tokens on their plots or use Axies on those plots to check out the availability of resources. Plots are in the form of non-fungible tokens (NFTs) and traded in the network’s free marketplace. 

#4. Marketplace

The Axie Infinity Marketplace lets players exchange Axies, Lands, as well as in-game items with other players across the globe. Since the Axie Infinity network runs on the Ethereum blockchain, prices are quoted in Ethereum’s native token, ETH. Prices for Axies range from 0.02 to 100 ETH. The higher side i.e., 100 ETH might seem extreme, but that’s justified by the fact that these are ‘Origin,’ Axies – which are Axies created back in the original presale in Feb 2018. These Axies have body parts that will probably never be seen again. 

The AXS Token 

The AXS token is the native cryptocurrency of Axie Infinity. It fulfills the following role in the ecosystem: 

  • Governance: Token holders can stake funds and take part in network governance through voting
  • Staking: Players can stake AXS tokens and earn rewards
  • Payment: Users can make payments using AXS tokens
  • Reward mechanism: Players can earn AXS tokens for playing games in the network

Community Growth Strategies

The Axie team is implementing certain strategies in a bid to expand the community. Current strategies include the following: 

  • Engage the community through social media channels, especially Discord
  • Regularly inform the community on progress
  • Work one-on-one with particularly active community members to produce content and attract more users
  • Attract both individual and institutional investors to interact with and purchase Axie games

Future strategies include: 

  • Implement referral programs to attract new users
  • Partner with renowned artists to produce new Axie assets
  • Collaborate with mainstream media platforms to get the word out
  • Partner with renowned players in the blockchain game space for strategic initiatives

Token Supply Distribution

The AXS token was distributed in the following manner: 

  • Binance launchpad sale tokens: 11%
  • Private sale tokens: 4%
  • Play to earn tokens: 20%
  • Staking rewards tokens: 29%
  • Team tokens: 21%
  • Advisors’ tokens: 7%
  • Ecosystem fund tokens: 8%

AXS Tokenomics 

As of November 10, 2020, the AXS token traded at $0.300532, with a market cap of $16,034,239 that put it at #384 in the market. The token has a 24-hour volume of $10,268,494, and it has an all-time high of $0.368715 (Nov 10, 2020) and an all-time low of $0.123431 (Nov 06, 2020). 

Where to Buy (store maybe) AXS 

Today, you can get AXS from Binance, where it’s listed as a market pair of USDT, BTC, BUSD, and BNB. 

As the Axie Infinity network is based on Ethereum, you can store the AXS token on an Ethereum-compatible wallet. Consider going with Ledger, Trezor, Trust Wallet, Atomic Wallet, MyEtherWallet, MetaMask, Guarda, which are all tried-and-tested options. 

Final Thoughts 

Axie Infinity is one of several blockchain-based platforms that are returning the power to gamers. On Axie, players will not just play, they’ll also earn cryptocurrency for simply participating. And this in a completely decentralized and safe environment. Will Axie reach the wild success levels of games such as CryptoKitties? That remains to be seen, but that in the crypto world there’s always space for advancement. 

Categories
Crypto Daily Topic Cryptocurrencies

Should You Buy Bitcoin If The Fed Releases Stimulus?

The covid-19 pandemic has put a lot of pressure on economies. Nearly every region has recorded an economic slowdown since authorities began restricting the movement of people. Some governments have tried to rescue their economies from drowning, while others have done nothing. But the US government has been contemplating a stimulus package after it became clear that the central bank is running out of options.

The release of a stimulus package will invariably affect the economy. By extension, activity in the crypto space will be shaken. Washington has delayed the release of stimulus, but this fiscal intervention seems inevitable in the long run. When that happens, will it be our cue to buy crypto? Well, read on to find out.

How Stimulus Works

During an economic slowdown, such as the one being experienced due to the current pandemic, one of the biggest challenges the economy faces is a restricted cash flow. As people are cash-constrained, the volume of money exchanging hands declines. Since the beginning of the pandemic, there has been a coin shortage in the US. 

A fiscal stimulus can be achieved by having the government cut taxes or increase its spending. When taxes are reduced, people will have more disposable income, and this will encourage spending. In the latter case, an increase in government spending will inject more money into the economy, thereby bringing down the unemployment rate. In either case, the idea is to increase the motivation for spending and reduce the motivation for saving. 

When people are motivated to spend, currency deflation may result because people have money but do not produce more goods and services. The proposed $6 trillion stimulus is over 40 times Bitcoin’s market capitalization. One can only imagine how disruptive releasing this money can be. As we shall see later, the package will impact bitcoin and other cryptos in different ways.

The Case for/against Stimulus

The Fed has so far tried a range of options for keeping the economy afloat, including intervening in the stock markets and dishing out stipends to low income-earning Americans. Economists usually differ on the idea of meddling with the economy. One side of the table argues for a free-market approach, while others argue that government intervention at the right time is usually the best way out.

The problem with the stimulus is that it increases the country’s debt-to-GDP ratio. As will be explained later, people are getting money for work they have not done. This is essentially like borrowing money from the future. Technicalities aside, the issuance of stimulus introduces people’s risk of not using the money for the intended purpose. Beneficiaries can hoard the money in fear of economic uncertainty. This will keep the economy under strain, making crypto appear as the more attractive alternative. 

The other possibility is binge spending – yes, people tend to spend recklessly in times of inflation. This phenomenon typically results in even more inflation. The outcome? More people flock to crypto, which at such times seems immune to currency deflation.  

Impact on Bitcoin/ Cryptocurrencies

#1: Increased Spending on Bitcoin

There is a possibility that when the Fed releases the $1,200 checks, many will spend the money on buying Bitcoin. When the government started rolling out the coronavirus stimulus checks, it was reported that people were putting the money into waggish uses, including the purchase of tigers, guns, and Bitcoin. Judging from sentiments expressed on Twitter shortly after the announcement, Americans were eager to spend the money on non-essentials. 

One Twitter poll sought to know how many would spend their checks specifically on Bitcoin, and a whole 52% of those who qualified for the package said they were going to spend all of it on Bitcoin. The bottom line is that people spent their checks on Bitcoin, and they will do it again. If this happens, Bitcoin trading volume will increase, which will likely trigger a jump in the already-increasing BTC prices. Think about it.

#2: Devaluation of the USD

Stimulating the economy by giving people money will likely cause the USD to lose value and start fetching less on the forex market. This is because you are basically giving people money for work they have not done. Then, there is a (controversial) perception that Bitcoin and crypto, in general, is a haven for assets in times of economic crises. When these two theories are brought together, an influx in Bitcoin investment is very much conceivable. 

You see, investors holding their savings in dollars fear that a devaluation of the currency (in this case, as a result of releasing stimulus) might cause them to lose a significant portion of their savings. On the other hand, Bitcoin is flourishing in the bull market. So, it is only natural for investors to turn to Bitcoin if this money is released to Americans. A likely outcome in such a case is growth in Bitcoin’s demand, which means increasing prices.

Bitcoin’s Advantages (Amid this Crisis)

#1: It’s Not Even the Value, It’s Decentralization 

Bitcoin has a huge advantage over the USD in this crisis, and that’s the fact that it is decentralized. Unlike the dollar, they can’t just print more Bitcoin. This feature guarantees its investors that the risk of artificial deflation is minimized. Of course, there can be no guarantee that crypto will not see the bear run as long as the Fed keeps pumping dollars into the economy, but what are the chances?

#2: As We Speak, Bitcoin is on the Bull Run

Decentralization is great, but we can’t ignore the fact that Bitcoin is currently recording unusually impressive performance. As an investor looking for alternatives to the dollar, which is at risk of deflation, Bitcoin must not be far from mind. The way out can only be crypto since the stocks are not an option. Although share prices may see a decline if inflation indeed kicks in, it’s not a good idea to invest during the bear run. So, it looks like Bitcoin carries the day.

Final Thoughts

The coronavirus pandemic has brought with it an economic meltdown. The Fed has instituted several measures to counter the strain the economy has endured. Plans to release stimulus are before decision-makers now. This move may help relieve economic strain temporarily. However, it is likely to result in inflation. In such a case, investors might flock to Bitcoin to avoid losing their assets. If this happens, Bitcoin might become stronger, and investors’ margins will rise. In short, if the Fed releases stimulus, we could consider it our cue for buying Bitcoin. 

Categories
Crypto Daily Topic Cryptocurrencies

Can WazirX (WRX) be the Queen of Exchanges?

While it may appear as though crypto has received a lot of support and adoption, the reality is that penetration is yet to even go beyond 1%. The reasons for this are the massive obstacles standing between Fiat and crypto, such as high fees, complex procedures, regulatory hurdles, etc. Also, existing on-ramp solutions grapple with high deposit and withdrawal fees, delays, and users not truly owning their own money. 

WazirX is a decentralized crypto exchange that wants to solve these and more problems to provide users with the means to adopt cryptocurrency. Based in India and acquired by Binance, the platform’s name, Wazir, is another name for the “queen” in chess. The queen piece can not only play any move; it’s also the strongest. WazirX wants to live up to these characteristics. 

What’s WazirX? 

Launched in 2018, WazirX is a crypto exchange with advanced buy, sell, and trade functionalities. It features a live and open order book on which users can trade over 80 crypto assets, including Bitcoin, Litecoin, BNB, Dash, and more. 

On WazirX, you can also deposit or withdraw crypto and cash in or cash out stablecoins such as USDT in a fast, secure, and peer-to-peer manner. WazirX’s goal is to bridge the chasm between Fiat and crypto. 

WRX’s native token is the backbone of the ecosystem and has several use cases, including trading fee discounts, participation rewards, payment for margin fees, and more. WazirX supports five platforms at the time of writing: Web, Android, iOS, Windows, and Mac.

History of WazirX

The WazirX team launched the platform to respond to the Indian government’s banning of crypto businesses, exchanges, and shops. Banks had also been banned from engaging in any crypto-related activities. 

Today, the platform is, first and foremost, the go-to platform for Indian users to trade in crypto – in an uncensorable manner. But that’s not where the team is stopping. They intend to take the WazirX proposition to more developing and underdeveloped countries for Fiat on-ramp solutions. 

Binance acquired WazirX in November 2019. However, it continues to operate independently with a focus on peer-to-peer crypto trading. The WazirX team shares a vision with Binance, and that’s to increase the freedom of money around the world and improve people’s lives. 

How Does WazirX Realize Security? 

The WazirX team ensures security for the network through the following actions: 

  • Majority of funds kept in cold storage
  • A muti-sig wallet system
  • Two-factor authentication system for transactions
  • Strong KYC/AML procedures
  • Regular security audits

WRX Value 

WRX token holders will receive perks, including but not limited to discounts in payment of fees. The discount structure is as follows: 

  • 1st year: 50% trading fee discount
  • 2nd year: 25% trading fee discount
  • 3rd year: 12.5% trading fee discount
  • 4th year: 6.25% trading fee discount

Users will also earn participation rewards for performing P2P trades. Also, token holders will have voting power to determine issues such as future listings, update releases, etc. 

WazirX will burn 10% off WRX tokens every quarter based on the trading volume. In the end, about 100 million tokens will be burned – in a bid to prevent the token from overflooding the market. 

Who’s on the WazirX Team?

WazirX is the brainchild of a core team of members. We have founder and CEO Nischal Shetty, who is also the founder of Crowdfire and is an awardee of Forbes 30 under 30. 

Co-founder and CTO is also a co-founder of Crowdfire Sameer Mhatre is a full-stack developer and designer. He describes himself as “a huge Java and JS fan.” 

Co-founder and COO Siddharth Menon also co-founded Crowdfire. He’s also the founder of 3Crumbs, one of the early mobile startups in India. 

Community Growth Strategies of WazirX 

The WazirX team intends to implement several community growth strategies in a bid to expand the growth of the network. Current strategies include: 

  • Innovative participation reward programs, e.g., the WRX Trade Mining program
  • Publish media content including guest posts and features
  • Conduct AMAs and both virtual and physical conferences
  • Conduct interviews with influencers
  • Release progress updates every month
  • Headline events and partner with industry influencers

Future strategies include: 

  • Create dedicated Telegram channels for various countries
  • Headline and participate in more events such as meetups and conferences to grow further its offline presence
  • Continue to innovate with rewards programs
  • Collaborate with various wallets and decentralized finance apps to explore Fiat gateway solutions

WRX: Token Supply Distribution 

The ERX token was distributed in the following manner: 

  • Launchpad sale tokens: 10%
  • Private sale tokens: 5%
  • Foundation tokens: 30%
  • Product and marketing tokens: 20%
  • Partnership and ecosystem tokens: 20%
  • WRX Airdrop tokens: 11.10 percent
  • WRX trade mining tokens: 3.90%

How’s the WazirX Token Doing in the Market? 

As of October 31, 2020, WRX traded at $0.088615 with a market cap of $20,718,698 that placed it at #323 in the market. The token had a 24-hour volume of $8,866,743 and a circulating and total supply of 233,817,289 and 995,833,334. WRX has an all-time high of $0.229263 (Mar 07, 2020) and an all-time low of $0.055241 (Mar 13, 2020). 

Where to Buy WRX

You’ll find WRX listed as a market pair of USDT, BTC, BUSD, BNB, TRX, and more in several exchanges. They include but are not limited to WazirX, Binance, BinanceDEX, Bilaxy, Sistemkoin, BiKi, Poloniex, FTX, and Bitsonic. 

Final Thoughts

WazirX is relatively young, but it has done well. With its plan to spread its wings to more countries, the project is poised for more success and could very well compete with more established exchanges like Huobi, Coinbase, etc. Here’s to hoping it succeeds in both expanding and democratizing money for populations. 

Categories
Cryptocurrencies

Blockchain Tech Growth and What It Means for You

We are living an important growth of applications based on Blockchain technology, what would be the definition of this technology?

In 1968, young Americans died far from home in a war they did not understand, French students took to the streets contrary to the consumer society… people began to demand liberal self-management mechanisms, far from regulations imposed by leaders, of which no one knew their true intentions… In that ecosystem, attractive ideas began to be forged that, far from the violence of ancient revolutions, defended property and pure capitalism, a capitalism that was managed from the will of individuals and that sought social justice from the conscious distribution of resources.

In the following years the theories that underpinned these ideas were written, the ideas that established the foundations of the collaborative economy as we understand it today. Currently, Blockchain is the technology that makes these ideas possible. Blockchain is the technology that makes individuals possible to interact with each other, without the need for an external regulator imposed by the system. That is, Blockchain does not need governments, ministries, or large corporations to regulate relationships between individuals. Blockchain is an intelligent arbitration system that through a fair consensus system, provides validity and trust to all transactions between individuals.

So the question is no longer what is Blockchain? The question is, if like the youth movement of May ’68 was cannibalized by the consumer market that was attacked, will the current market be able to absorb the Blockchain movement? We have seen that it has a multitude of applications Can you give us some examples of the use that is currently being given to this technology and what it can be given in the future?

Rivers of ink are being written about the things that can be done with Blockchain, but the reality is that getting out of the conceptual definition is not that easy. The real applications for the market are appearing now, and the most immediate possibilities are in financial transactionality, document certification, digital identity, and cybersecurity… Use cases are landing right now: Object traceability… and people, intellectual property, or virtual banks are already a reality.

And what will come? Blockchain can reduce costs in management processes in any company, including public administration. Blockchain securely reduces the time and price of financial transactions and information. Blockchain proposes transparent distribution systems that parameterize the signed contracts obliging compliance, systems that execute orders agreed automatically… The future is magnificent.

Why this blockchain boom? We come from a global economic crisis, a crisis in which bankers, businessmen, and leaders have not turned out very well, some morally, and others, also judicially. A crisis in which we have all suffered, if not in our own experience, if in of a close relative or friend, it has also been a public crisis, televised: televised the scavengers, televised the refugee children dying on the beach, televised trials in which everyone loses their memory, televised politicians, elected by the citizens and guarantors of democracy and the values of society, covering their faces to get into police vans… being aware of what’s going on, and seeing it every day in the media… Isn’t it tempting to cling to the mysticism of a technology that allows anyone to create a bank, that allows benefits to be democratized, that allows you to believe that you can get out of a system that no longer provides moral referents?.

The public networks of Blockchain, cannot be fooled, cannot be hacked, cannot be bribed… How can I not allow myself to dream of a world that works better? Dreaming is legitimate and human, as is hope… That’s why the gap I was referring to earlier, between the conceptual and real Blockchain, because, for many people, Blockchain is still the Grail, or even, for some, an exercise in alchemy. We must balance expectation and reality.

What are cryptocurrencies and what are their current utilities? Cryptocurrencies are the money of the future, digital money where instead of relying on a centralized system is used a “peer-to-peer” system with thousands of anonymous nodes that verify the transaction, thus avoiding 90% of the cost and increasing the speed of operations, with the ability to make transactions in seconds, whatever the recipient and regardless of their location: a few days ago, I was told how a transfer could be made to Hong Kong in 6 minutes and totally secure.

Its use can be purely economic, as if they were euros or any other fiduciary currency, for example, so the Bitcoin or Ether, can have an application as an investment in a company or project, where the currency is valued or devalued according to the total capital that supports the project, its initial offer to launch the currency is called ICO and currently exist around 800 different cryptocurrencies where the predominance of bitcoin over the rest is around 40%. And in other cases, cryptocurrencies can be used for a mere exchange of goods and services, as a digital “barter”.

Why this rise of cryptocurrencies and what is expected in the future of them? The boom is because people don’t want long waiting times, nor do they want to pay high commissions, we are in a society where we want everything already and as cheap as possible. And with Blockchain technology this is possible. In addition, the other great advantage is that they allow the distribution of “dividends” of a company in a very simple and equitable way depending on the number of tokens (cryptocurrencies) that are held of a project. People are also providing them as a future investment because the growth of the market, the trend, is sustained and bullish.

What are the main cryptocurrencies and what differentiates them? The main currencies for me are two, on the one hand, Bitcoin and second Ether, although there are many who will want to come out and growing in volume and quotation. Bitcoin was the first cryptocurrency considered as such, after several failed attempts in the ’90s, Satoshi Nakamoto, in January 2009, announced the creation of Bitcoin and since then has gone from being worth cents to approximately $2,500 worth today, its end is entirely economic and transactional and can easily predict significant growth in the near future, with an estimated $10,000 by the end of next year.

On the other hand, Ether that works on the Ethereum platform emerged as an improvement over the Bitcoin network, where transactions are made faster and are better adapted to run Smart Contracts, which are intelligent contracts that allow the network itself to carry out operations if certain premises are automatically fulfilled.

More and more coins will appear with new projects, I can recommend ReddCoin RDD, a project that integrates a digital currency platform in a transparent way in the main social networks so that the process of both sending and receiving money is very simple and rewarding for everyone. Another emerging currency is LBRY, which has created a free, open, and community-managed Blockchain digital marketplace. But, again, there are 800 digital coins and each one has its own particularity.

Going back to Blockchain technology, what is it based on and how is it built? Although it is a complex technology, I will try to explain it as simply as possible:

Imagine a thousand computers, scattered around the world, each in the home of a normal person, a family, a student… individuals who do not know each other and make independent decisions. Well, let’s imagine, those computers are part of a blockchain network.

And I’m sure you’re wondering: why are they part of the network? Because very simple, apart from believing in it, they also do it for money. For each of those computers, every time you transfer information or digital money, you get a small commission.

Once we have answered why a computer is put at the service of a public Blockchain network, we can now imagine that someone decides to send a transfer in a cryptocurrency to pay for tickets to a theater function. Well, all those computers, they distribute the commission money that costs me that transfer, but in turn, they also validate the transaction.

Let’s take an example of how a blockchain action is validated and what are the advantages of distributing the information: if I send to the thousand computers the information 1, the thousand computers keep the information 1. If someone tried to change the information of a computer and said that the information is 0 and not 1, a complex system of arbitration based on the theory of games would have the remaining 999 computers tell the changed computer “you made a mistake, the information is 1” and the changed computer would give back the correct information.

Returning to our example of ticket purchases, the thousand computers validate that from my account a transfer of an X value has been made to the theater account, if someone wanted to change or hack that information, they would have to “change their mind” to the thousand computers.

Why are more and more banks (and non-banks) using this technology? In my opinion, Blockchain is a wonderful technology, the best-built data certifier, and validator. In addition, as noted above, the deployment of distributed data chains reduces management costs and can optimize process times. With this argument… How can companies and organizations not want to have this technology?

There is a special case, which is the financial institutions. Their situation with Blockchain is very special. On the one hand, they are forced to understand and play on the Blockchain board, because the reality is that anyone can create a virtual bank, the financial startups, the so-called fintech, are creating financial ecosystems independently of the big banks, and regulations such as the PSD2 directive are coming on top of them, which makes the growth of this new competition even more possible… All this encourages them to move forward.

But also, they have very strong regulations that they must comply with, they have spent a lot of money to generate operating systems that, effectively, work, the average age of customers earning money is high enough and far enough from an on-line industrial revolution to worry about now, and its conservative nature, makes them afraid of a technology they fail to fully understand. We’ll see in the future, whether the brake was stronger than the advance or… vice versa.

How could this technology revolutionize personal and institutional relationships? In personal and institutional relationships I am clear about the next step with Blockchain, and it affects two basic characteristics of both personal and commercial relationships: reputation and truthfulness.

As digital identity systems and data validation systems advance, it is going to be very difficult to cheat or lie on the network. I am aware of the European Union’s intention to move forward on the issue of unique digital identity registers so that our identity as citizens transcends the virtual world.

Categories
Crypto Daily Topic

Top DeFi Tokens of 2020: Check Out Number 5

Which are the best DeFi tokens of 2020? DeFi tokens have had a great year. It’s not an exaggeration to say they could very well eclipse ‘normal’ cryptocurrencies in the future. As DeFi continues to explode and the year nears a close, it helps look at the tokens that have defined 2020 and will probably continue to do so in the coming year.

This list doesn’t just follow the tokens that are the highest in market cap. It also looks at the most promising and exciting tokens. 

#1. Chainlink 

Chainlink is a decentralized oracle for connecting blockchains to external data and information. The Chainlink protocol, which includes the LINK token, allows smart contracts to operate without relying on permissioned or centralized information. For instance, a developer can run a sports betting contract that relies on an external oracle for sports scores. Chainlink has proved especially popular, with countless DeFi protocols including Aave, Ampleforth, Celcius, Arbol, yearn.finance, Nexus Mutual, and Synthetix all utilizing its smart oracles function. This popularity has catapulted it to the top ten in market cap, sitting at #5 at the time of writing. The LINK token, which began the year going for $2, already hit $12. 

#2. Maker (MKR)

Maker is one of the earliest stablecoins in the DeFi space and one of the most resilient. Despite (and probably because) of its low total supply of slightly more than a million, the token is a huge hit in  DeFi, judging by its current per-token value of $513. And this is a climbdown from the highs of $1,700 in 2018 before the token plummeted during the 2018/2019 crypto winter. In 2020, it got a reprieve after reaching $600 this year. With its MKR token, the protocol makes up what is probably the best example of a stablecoin system: a collateralized debt position powered by its  stablecoin – DAI, which maintains stability for the protocol by using various economic incentives. MKR will be one of the tokens driving the DeFi space in the near future and beyond. 

 #3. Aave (LEND)

Aave is an open-source, decentralized protocol that allows users to create money markets, earn interest on their deposits, and borrow funds through the LEND token. With a market cap of $859 million, Aave is currently the 4th biggest DeFi token. Aave has had an incredible year. It started off at a mere $0.009 in  January but has now clocked $73 per token, which is remarkable even in crypto. 

#4. Synthetix Network Token (SNX)

Synthetix is a blockchain protocol that lets anyone gain exposure to a wide array of assets. The platform is credited for introducing yield farming in DeFi, though it’s now been overrun by platforms like Compound and Aave. Still, the token continues to ‘hold the line,’ as manifested by its current position of #9 among  DeFi tokens and #40 among all cryptocurrencies. With a market cap of nearly $500 million, SNX demonstrates its resiliency. Synthetix supports a smart contract infrastructure and incentivization system that will continue to propel it upwards. 

 #5. Dai (DAI)

Part of the Maker ecosystem, DAI isn’t a token that you buy to HODL. Still, it’s an excellent idea to buy the token and hedge your portfolio against volatility. Dai is probably the most elegantly designed stablecoin in the world today, with an ingenious incentivization and collateralization system that securely puts its value at a 1:1 ratio against the US dollar. While other stablecoins achieve stability by using clumsy ways like holding US dollars in the bank, Dai uses a more accurate and flexible tech-based system. Anyone can also create their own Dai if they put up collateral. 

#6 Compound (COMP)

Compound is a DeFi protocol that allows anyone to lend, borrow, and provide liquidity and earn returns. Comp exploded after it started distributing its native token, COMP, in June this year. It’s definitely one of the hottest tokens in DeFi right now, featuring a market cap of $526 million and a per-token value of $124 at the time of writing. COMP is an Ethereum-based mechanism used as a governance mechanism of the Compound ecosystem. As the Compound platform continues to expand, we’re sure to see the value of COMP following the lead. 

#7. 0x (ZRX)

0x is a decentralized exchange protocol that allows developers to create their own exchanges. The project’s founder calls it the “Craigslist for cryptocurrencies” in that anyone can build an exchange and post it online. Despite its promising value proposition, the 0x token, ZRX, has had the slowest growth this year. In January, you could buy the token for around $0.20, and it’s now sitting at $0.36 at the time of writing, with a market cap of $273,926,375. But the dismal growth of the token does not discount its potential to break through in the future. The 0x token is one to keep sights on. 

#8. Ampleforth (AMPL)

Ampleforth kicked off the year trading at around $1, went to rise to $4 in July, before sharply clamping down to around $1 again. Ampleforth calls itself a cryptocurrency “like Bitcoin,” but with a daily change in supply, insuring against market shocks.  Ampleforth wishes to solve what it calls the “dangerously correlated” crypto market by adding diversity to the ecosystem. While most cryptocurrencies follow the Bitcoin price pattern, the AMPL token matches to its own beat. This could prove an excellent hedge for your crypto portfolio. 

#9. Augur (REP)

Augur started the year sitting at around $9, and if now trades at $14 in November, a dip from around $20 in August. Based on Ethereum, Augur, via its native token – REP, aims to power a prediction market where users can earn money if they predict winning outcomes. Augur also acts as a decentralized oracle for verifying real-world events. These events could be anything – from natural events to election results to football matches’ outcomes. At the time of writing, Augur is at position #75 in the market and continues to be one of the DeFi’s best.

#10. Terra (LUNA)

Terra is a DeFi protocol that wants to expand everyone’s financial  inclusivity through its native token, LUNA. The Tetra team wants to “set money free” by building an open, global financial infrastructure. This infrastructure constitutes a family of stablecoins that allow users to earn mining rewards, giving people an incentive to participate in the network. Terra launched its mainnet in April 2019. It currently offers stablecoins pegged to the US dollar, South Korean Won, the Mongolian tugrik, and the IMF’s Special Drawing Rights basket of currencies. Users can trade LUNA as well as stake it and earn interest. LUNA token holders can also participate in the platform’s governance. After kicking off the year at $0.24, LUNA’s price nearly doubled around July before cooling down to around $0.33 in November. With its value proposition, Terra is set to be one of the most important DeFi presences in the future. 

Closing Thoughts

Ten years ago, the crypto space was talking about Bitcoin and decentralized currencies. Now, we’re talking of decentralizing the entire finance space. The above tokens represent some of the most exciting decentralized finance projects and their tokens in 2020. With a rapidly evolving DeFi space, you can expect anything in the coming year, but for now, these are among its biggest stars. 

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Cryptocurrencies

MIRkey Hardware Wallet Review: How Safe Is MIRKey Hardware

MIRkey is a Bitcoin hardware wallet designed and introduced to the crypto world by Ellipticsecure, a crypto-security company that specializes in the manufacture of Hardware Security Modules (HSM). According to its developers, MIRkey is a security-focused hardware wallet that embraces a host of security features, including a FIDO2 certification. But unlike most other hardware wallets that have their focus set on ease of use, especially with a large OLED display, MIRkey doesn’t have a display screen. 

In this MIRkey hardware wallet review, we will be vetting the wallet by looking at such factors as its key features, ease of use, pros and cons, and a step-by-step guide on how to interact with MIRkey, and compare it with other Bitcoin only wallets. 

MIRkey wallet key features:

Sleek design: MIRkey hardware wallet embraces a sleek USB-like design. This implies that the wallet is both ultra-light and highly portable. The wallet also features a single button that is used to authorize outbound crypto transfers. 

Integrates software wallets: You get to control the MIRkey hardware wallet via the MIRkey software wallet. This software is versatile and compatible with virtually all computer operating systems, including Windows, macOS, and Linux.

Integrates Electrum wallet: MIRkey hardware wallet will also integrate software crypto wallets like the Electrum Bitcoin wallet that plays a key role in making the hardware wallet easy to use and interact with. 

Security features:

Password: Like any other software or hardware crypto wallet, MIRkey is secured with a password that you set when activating the wallet and creating a user account. This prevents unauthorized access to the wallet and the private keys and serves as the hardware wallet’s encryption tool. 

Two-factor authentication: All outbound crypto transfers from your MIRkey hardware wallet must be subjected to two-factor authentication. On the hardware wallet device is a button that you have to press to authorize the transfer implying that even if a hacker were to gain access to your passwords, they must have physical access to the device to initiate the transfer. 

FIDO2-certified: MIRkey hardware wallet received FIDO2 certification in September 2019. This implies that the wallet meets the international standards in security and safety and can, therefore, be used to store the security phrases and passcodes for registries, systems, and such web services like Google, Facebook, Netflix, GitHub, Amazon, etc. 

VPN access: Another unique security measure that sets the MIRkey hardware wallet apart from most other hardware wallets is that it is accessible via a VPN.

Cold storage: MIRkey is a noncustodial wallet implying that your private keys and all other personal data stored in the wallet are stored therein is highly encrypted and stored in hardware devices offline. None of your information is stored on the Ellipticsecure company servers, plus all communications between the wallet, the company, and other third party systems are subjected to end-to-end encryption. 

Hierarchical deterministic: Sensitive information like wallet addresses and the recovery seed are generated by the hardware device offline. The wallet address generation process is also hierarchically deterministic in a process meant to throw off crypto trackers. 

Recovery seed: When activating the hardware wallet and creating a user password, you will also be presented with a 24-word backup and recovery seed. It comes in handy should you want to recover lost private keys. 

How to set and activate the MIRkey wallet

Step 1: Start by ordering your copy of a MIRkey hardware wallet on the Ellipticsecure.com website.

Step 2: Download the MIRkey desktop app that is compatible with your computer. 

Step 3: Install and upon launching the app, click the ‘Create a new wallet’ tab

Step 4: Create a password for the wallet

Step 5: Insert the MIRkey hardware wallet device. 

Step 6: Choose a username and create a passcode for the wallet.

Step 7: The wallet will now present you with a 24-word recovery seed. Write it down on a piece of paper and keep it safe offline. 

Step 8: The wallet is now active and ready for use 

How to add/receive crypto into your MIRkey wallet 

Step 1: Log in to the MIRkey desktop wallet app and click on the “Receive” tab on the user dashboard.

Step 2: On the wallet address and forward it to the person sending you Bitcoins

Step 3: Alternatively, have them scan the wallet’s QR code

Step 4: Wait for your funds to reflect in your account.

How to send crypto from your MIRkey wallet

Step 1: Log in to the MIRkey desktop wallet app, and on the user dashboard, click “Send.” 

Step 2: Select the account from which you want to send Bitcoins 

Step 3: On the transfer window that pops up, enter the recipient’s wallet address and the number of Bitcoins you want to send

Step 4: Insert the MIRkey hardware wallet device into the computer

Step 5: Confirm that the transaction details are correct and press the on-device button on the MIRkey wallet to authorize the transfer.

MIRkey wallet ease of use

The MIRkey hardware wallet is relatively easy to use. The onboarding process is quite easy and straightforward. And while one might find fault that they don’t include the wallet activation guide in the wallet’s package, you don’t need expert help to activate the wallet.

The processes of sending and receiving Bitcoins in and out of the MIRkey wallet is also quite straightforward. We must, however, observe that the lack of an on-device screen complicates the transaction verification process. 

MIRkey wallet supported currencies

MIRkey is a bitcoin-only wallet, but you can always integrate it with such software wallets as the Electrum that help increase the number of supported crypto coins. 

MIRkey wallet cost and fees

The MIRkey hardware wallet costs $49 on the Ellipticsecure.com website. But you can buy a double pack hardware wallet for $79 with a 30-day money-back guarantee. 

The desktop wallet app is nevertheless free. And so is storing your digital assets here. However, you will have to part with the Bitcoin blockchain network fee every time you want to send coins to another wallet or exchange. How much you pay is largely dependent on the number of coins you want to send. 

MIRkey wallet customer support

EllipticSecure, the MIRkey hardware wallet developers, has one of the most responsive aftersales service and customer support team. You can contact them via the phone number on their website, send them an email, or raise a support ticket on their ‘Contact Us’ page. 

You can also consult their blog, documentation, and how-to guides on the website’s ‘Resources’ page. 

What are the pros and cons of using the MIRkey Wallet?

Pros:

  • It embraces some of the most innovative security features
  • MIRkey is relatively inexpensive when compared to most other hardware wallets
  • The wallet is highly intuitive and beginner-friendly
  • It has a highly responsive customer support team that is also available on the phone
  • It is compatible with the electrum software wallet 

Cons:

  • It will only support Bitcoins
  • It doesn’t have an on-device screen, and this complicates transaction verification

Comparing MIRkey wallet with other hardware wallets

MIRkey wallet vs. Ledger Nano S wallet

MIRkey and Ledger Nano S are both security-focused hardware wallets. They also rank highly among the most affordable hardware wallets. Other similarities between the two include storing your coins in cold storage, their sleek and ultra-lightweight design, and ease of use. 

However, while MIRkey will only support Bitcoins. Ledger Nano S, however, is a multicurrency hardware wallet that supports 1000+ cryptocurrencies and tokens. Similarly, Ledger features both the on-device button and OLED screen. Further, unlike MIRkey that is only compatible with the Electrum software wallet, Ledger Nano S integrates numerous software and mobile app crypto wallets. 

Verdict: Is MIRkey wallet safe?

Yes, the hardware cryptocurrency wallet has put in place several highly advanced security and privacy measures. These have seen the wallet earn the coveted FIDO2 certification, and they include the fact that your wallets are stored in cold storage. The process of generating wallet addresses is also hierarchically deterministic, you can boost wallet security with two-factor authentication, and it also provides you with a backup and recovery seed. You only have to part with $49 and deal with the fact that it is a Bitcoin-only wallet.  

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Cryptocurrencies

Is It Too Late to Start Trading Ethereum?

Ethereum (ETH) is one of the major cryptocurrencies out there, along with recognizable names like Bitcoin, Ripple, Litecoin, and several others. Since its launch in July of 2015, Ethereum has become a decentralized payment method that doesn’t rely on the government or traditional banks because the digital currency can be sent anywhere in the world instantly.

Many people prefer this payment method against the bank’s high fees and longer waiting periods and others purchase ETH because it is scarce, therefore it has value. Between March of 2017 and 2018, the price of Ethereum grew from $30 to an astounding $750 – meaning that investors could have made a lot of money if they had invested at the time.

Ethereum might not be as popular as Bitcoin, but it can do things that other cryptocurrencies can’t. It is programmable, which allows developers to use it to create new applications that can be uploaded to the system. They can be used to create new types of financial applications and are not controlled by any single person, rather, they are decentralized. The currency ETH is becoming a more widely recognized funding source across the world and is being offered as a payment method by developers in games, markets that allow you to trade digital assets (decentralized markets), financial applications, cryptocurrency wallets, and more.

Ethereum’s developer actually got the idea to create it because he felt that Bitcoin needed a way for its developers to create their own applications within the blockchain. After being rejected by Bitcoin’s developers, he went on to launch his very own cryptocurrency. 

Investors also need to know that there are two types of Ethereum tokens, general Ethereum (ETH) and Ethereum Classic (ETC). This was actually caused by a wise decision the company made after being hacked. Instead of taking a huge loss, the company created the newer ETH so that the coins stolen by the hackers would lose a lot of their value. The fork made the older Ethereum Classic less valuable and many people switched to the newer ETH, which is the more widespread and supported token. 

Ethereum is the 2nd most used cryptocurrency in the world, falling only one spot short of Bitcoin. Growth is expected to continue, giving it the potential to be a profitable investment in the long-term. Plans for improvements to Ethereum’s blockchain are in the works, which could also make the price go up. These constant improvements help to set this currency apart from its competitors. 

While things seem to be looking up, there are a few problems that could lower the price of ETH. Government regulations might come along and make the price drop, holding onto the investment for a long time doesn’t allow you to profit from the cryptocurrency market’s volatility, which could offer one the ability to make short-term profits, and there is always a chance that a better cryptocurrency could come along and take its place. There also seems to be evidence that other investments have the potential to make you money. Of course, these are a lot of “what ifs?”. 

So, is right now a good time to invest in Ethereum? We think so. Just look at the currency’s growth in the past – if you’re a fan of technical analysis, you’ll likely recognize its historical growth patterns. The thing you need to know is that cryptocurrency is a volatile investment that is expected to rise and fall, meaning that investors need to be able to hold onto their investment for some time without panic selling. If you can handle that, then Ethereum has the potential to make you a lot of money down the road.

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Crypto Daily Topic

8 Ways to Earn Passive Income with Crypto They Will Never Talk About!

Most people, when asked about ways to make money off crypto, will say trading. Trading is one of the most straightforward and probably the most popular ways to make money with crypto. But there are several other ways to make money with crypto, and most of them are surer bets than trading – by far. 

And the good part? You only need to take action and sit back and watch your money grow with some of the ways. And get this: with some ways like staking, the returns are substantially higher than you could ever get with the traditional finance system. Others, like blockchain-based content creation, may require a more hands-on approach but still can be done alongside your daily job or business. 

 With that, let’s get straight to it!

#1. Mining 

In cryptoverse, mining is the process of using computing power to make guesses until you arrive at the correct hash, which then unlocks the next block in a blockchain network. Crypto miners receive crypto rewards for finding blocks and recording them on the blockchain network. You do not have to have crypto holdings to mine crypto. Miners can choose to convert their block rewards to Fiat immediately, HODL them, or plow those earnings back to their mining system. 

When Bitcoin was starting, anyone could mine from the home computer. But as the mining difficulty increased, the average daily computer could no longer hack it. We moved from CPUs to GPUs (some cryptocurrencies can still be mined with GPUs) to ASICs (Application-specific Integrated Circuits). ASICs utilize specific chips tailor-made for a particular cryptocurrency. Some of the most popular cryptocurrencies, i.e., Bitcoin and Ethereum, are mined with ASICs. 

Today, you can find an ASIC miner for an average of $1,000. If you plan to mine crypto, it’s best to join a mining pool. A mining pool is a team of miners who combine their computational resources to stand a better chance of finding new blocks. The block reward is then shared among the participants, depending on their contribution. Due to the combined computational power, miners in a mining pool are more likely to discover new blocks than individual miners. 

Tip: Join a mining pool for better profitability. 

#2. Staking 

One of the more easy-going ways to earn passive crypto income, staking, involves depositing crypto funds to get staking rewards. Staking networks utilize proof-of-stake or related consensus mechanisms, e.g., delegated proof of stake. With staking, mostly what’s required is just holding tokens in your wallet. In other cases, you need to add or delegate the funds to a staking pool. In DeFi pools, staking similarly involves putting up supported cryptos and earning interest.

When you stake in a network, you’re contributing to that network’s security and resilience, hence the reward. Staking is one of the simple ways to multiply your crypto holdings with minimal effort. 

#3. Lending 

Lending is another hands-off method to make money with crypto. There are multiple peer-to-peer lending platforms (Coin Loan, Nexo, BlockFi, Celcius, EthLend, etc.) that allow you to lock up crypto and earn interest in return. Usually, the interest rate is set by the platform or by you based on prevailing market trends. The more you lend, the more you stand to reap. 

#4. Lightning nodes 

The Lightning Network is a layer 2 solution for blockchains such as Bitcoin. It’s an off-chain payment channel that facilitates the processing of transactions without them being transferred to the underlying blockchain. 

When you use the Lightning Network to conduct a transaction, it’s quicker than if done on the blockchain. A network like Bitcoin only allows one-directional transactions. For instance, if Alice sends Bob one bitcoin, Bob cannot use the same channel to send it back to Alice. On the other hand, the Lightning Network utilizes bi-directional channels that require the involvement of both parties. This makes transactions quicker. 

When you run a Lightning node, you have the ability to process a lot of transactions quickly and get rewarded with transactions’ fees. 

#5. Affiliate programs 

Some crypto projects, especially new ones, will usually reward existing participants for bringing new ones to the platform. If you have, let’s say, a huge social media following, affiliate and referral programs can be a great way to earn passive income. Bear in mind that it behooves you to carry out research on any project you promote. 

#6. Masternodes 

A masternode is like a server, except it runs on a decentralized network. Typically, network participants have to put up sizable amounts of investment to become masternodes. Due to the significant investment, masternodes have a big incentive to maintain and secure the network. 

Crypto projects usually give special privileges to participants who have a considerable stake in their networks, in addition to rewarding them with return rates. 

#7. Airdrops

Airdrops are tokens given away for free by crypto projects in an effort to publicize or market themselves by getting people to talk about it. All you need is a wallet address of a particular crypto when the airdrop is taking place. For other projects, you’ll need to register on the project’s website and do things like retweeting posts, leaving comments on social media posts, sharing posts on platforms like WhatsApp, Telegram, and so forth. Also, some exchanges will conduct airdrops for the users occasionally. 

To have a heads up on upcoming airdrops, you should register sites dedicated to spreading the word about the exact matter. Such sites include Airdropaddict, Icodrops, etc. 

Note that receiving an airdrop will never require the sharing of private keys – a condition that is a telltale sign of a scam.

#8. Creating blockchain and crypto-based content 

With the advent of blockchain, previously unexplored modes of content creation and sharing are now possible. Blockchain-powered content platforms like Steemit allow content owners to monetize their work in various ways – and without intrusive ads popping all over. In such platforms, content creators get to own the rights and ownership of their work. Once you create a substantial portfolio of work, you can monetize it over time. 

Final Thoughts 

What’s better than earning passive income is doing so in a safe and secure environment, and that’s what you get with the activities on this list. Whether it’s staking, mining, running a masternode, you can make money from crypto with minimal effort. Of course, always make sure to do your own research before putting your money anywhere. Good luck! 

Categories
Cryptocurrencies

Xapo Wallet Review: Is Xapo The Most Secure Custodial Wallet?

Xapo is an app-based crypto wallet that seeks to provide the most accessible and highly secure platform for Bitcoin users. It was founded by Wences Cesares – an international entrepreneur and financial technology expert – and it is registered and incorporated in Gibraltar. On their website, the Xapo crypto app is described as a ‘secure alternative platform’ that goes beyond the industry standards in helping you protect your livelihood and digital assets.

Some of the factors that set it apart from the competition include the fact that it is a Bitcoin-only wallet app. Further, it is a custodial wallet that stores your private keys in highly advanced and ultra-secure storage vaults that are never connected to the internet. In this Xapo wallet review, we vet the wallet’s security, ease of use, look at its pros and cons, and provide you with a step-by-step guide on how to use the Xapo app.

Xapo Crypto app key features:

Mobile wallet: Xapo is a mobile crypto app available to Android and iOS phone users.

Purchase Crypto with Fiat: Xapo has collaborated with numerous payment processing service providers that you can use to buy Bitcoins off the platform. These include direct wire transfers as well as credit and debit card purchases.

Inbuilt exchange: Xapo has also come up with a peer-to-peer exchange platform where users can exchange Bitcoins for fiat currencies. These in-app exchanges are free.

Portfolio tracker: On the Xapo user interface is the balance tab that lets you view your wallet balances in real-time, as well as the activity tab that keeps a record of all your transaction history. The two play a key role in helping you keep tabs on your expenses and help with budgeting by monitoring your crypto inflows and outflows.

Automated notifications: Xapo makes it possible to set automated notifications for different wallet functions. For instance, you can have the wallet send you a notification every time you receive crypto when cryptos are drawn from the wallet, and Bitcoin price alerts.

Multisignature wallet: The multisignature functionality of the Xapo crypto app makes it possible for you to share the app with family and segregate everyone’s funds.

Integrates debit card: Xapo recently launched the prepaid Xapo debit card that you can integrate with your Xapo crypto wallet and use it to pay for goods and services on the different crypto-friendly point of sale or withdraw funds from Bitcoin ATMs.

Libra member: Xapo is one of the founding members of the Libra blockchain network put together by Facebook. According to the Xapo website, the app’s development team provides technical expertise to help the association launch and run the Libra global currency sustainably.

Security features:

Password: Like most other crypto wallet apps, the Xapo crypto vault is secured with a password.

Two-factor authentication: All outbound transfers from the Xapo wallet app must be subjected to two-factor authentication. You have the option of receiving the verification code via email, SMS, or google authenticator.  

Cold storage: Unlike most other wallets that give you absolute control of your wallets by saving the private key in your phone, Xapo keeps the private keys safe on your behalf. According to the crypto security company, all your private keys are stored in ultra-secure vaults in the Swiss Alps and other parts of the world. They further add these vaults don’t connect to the internet, and they are largely made from demilitarized bunkers.

Highly encrypted: All your data, including the private keys, is shared with and stored in Xapo servers and is highly encrypted using proprietary encryption technology. And so are Xapo’s communication with third party systems like payment processors and third-party exchanges.

How to set and activate the Xapo wallet:

Step 1: Start by downloading the Xapo crypto mobile app from Google Play Store or Apple App Store.

Step 2: Install and launch the app, choose your country of residence, and enter your phone number.

Step 3: Verify the number by entering the 6-digit code received via SMS

Step 4: Enter your email address

Step 5: Complete the user profile by completing the registration form

Step 6: Choose your country of origin/citizenship from the drop-down menu

Step 7: Read and agree to Xapo wallet’s terms of use

Step 8: Create a 4-digit passcode for your Xapo wallet app

Step 9: Verify identity by uploading a photo of yourself and that of a government-issued identification document as well as a proof of address

Step 10: The app will now send a verification link to the email provided. Open the link to activate the account.

Step 11: Your Xapo wallet app account is now active and ready for use

How to add/ receive crypto into your Xapo wallet 

Step 1: Log in to your Xapo app, and on the dashboard, click on ‘My Money.’

Step 2: Tap on the ‘Add Money’ on the next window

Step 3: Follow the prompts to add Bitcoins using one of the provided account funding options.

How to send crypto from your Xapo wallet

Step 1: Log in to your Xapo wallet app and click on the ‘Payments’ tab.

Step 2: If you wish to send funds to an individual on your contact list, click on the “Transfer to a contact” tab, and select “Allow access.”

Step 3: Select the recipient and click on the “$” sign to initiate a transfer.

Step 4: Choose the account you wish to send the funds from, the amount you wish to send, the currency type, and click “Send.”

Step 5: Review the transactions and check the accuracy of the details before hitting “Confirm.”

Step 6: Enter the PIN code to authorize the pay

Xapo wallet ease of use

Xapo wallet has a highly intuitive and beginner-friendly user interface. It only has a few tabs that are carefully placed on the user dashboard to ease your in-app navigation and how you interact with the wallet.

The app’s onboarding process, though lengthy, is quite straightforward. And so are the processes of adding funds, receiving and sending Bitcoins and other Fiat currencies in and out of the wallet.

Xapo wallet supported currencies and countries.

Xapo is a Bitcoin-only crypto wallet app. Interestingly, and unlike most other Bitcoin-only wallets that extend their support to Bitcoin forks, Xapo does not support any other crypto, including such Bitcoin forks as Bitcoin Gold and Bitcoin Cash.

However, the integrated peer-to-peer exchange makes it possible for users to exchange Bitcoin with over 150 Fiat currencies.

Currently, the Xapo crypto wallet app is available in about 30 countries across the world.

Xapo wallet cost and fees 

Downloading and installing the Xapo crypto wallet app as well as storing your Bitcoins therein is free. You also won’t be charged for using their in-app peer to peer exchange or transferring funds from one Xapo wallet to another.

Outbound Bitcoin transfers to other wallets or exchange will, however, attract a network fee charged by Bitcoin miners and not Xapo. The fee is nevertheless dynamic, and you have the option of choosing either the standard fee for normal confirmation speeds or priority fee for trades you wish processed and confirmed urgently.

Xapo wallet customer support

Xapo’s customer support has a rather elaborate FAQ guide on the company website that addresses Xapo wallet users’ common challenges and provides troubleshooting guides. There also are tutorials that try to explain how you interact with the Xapo app.

You can also contact them via email, the live chat feature on both the website and the app, or direct message them on such social media platforms as Twitter, Facebook, and Instagram.

What are the pros and cons of using the Xapo wallet?

Pros:

  • Transfers from one Xapo wallet to another are free
  • It stores your private keys in cold storages and ultra-secure offline vaults
  • It allows you to buy Bitcoin with Fiat currency
  • It features an inbuilt peer-to-peer exchange
  • It integrates the Xapo Debit that you can use to pay for goods and services or withdraw at Bitcoin ATMs

Cons:

  • It will only support Bitcoins
  • It doesn’t support anonymous crypto transactions as all users must be subjected to KYC and AML procedures
  • It has an unnecessarily lengthy registration process

Comparing Xapo wallet with other Bitcoin-only wallets

Xapo wallet vs. BTC.com wallet

Xapo and BTC.com are both Bitcoin-only wallets. But unlike Xapo, which is a mobile crypto app, BTC.com is a web-based wallet. BTC.com is a lot easier to use and interact with as it not only features a friendly user interface but also has an easier onboarding process.

Xapo, however, carries the day when it comes to the security of client funds. Plus, while BTC.com’s online nature exposes its inherent threats associated with hot wallets, Xapo is a custodial wallet that stores client private keys in highly decentralized and ultra-secure cold storage.

Verdict: Is the Xapo wallet safe?

Xarpo is a custodial wallet that stores client funds in decentralized cold storages spread across the world. It has also put in additional client-side security features that deter unauthorized access to these keys, like securing the app with a passcode, two-factor authentication, and automated alerts on transfers and changes in digital asset balances. One might consider such security measures adequate, but we must observe that these don’t necessarily make you and your wallet immune from such social engineering threats as phishing.

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Crypto Daily Topic

8 Great Tricks to Maximize Your Mining Profits: Number 7 will Amaze you!

Cryptocurrency has opened up so many opportunities to make money. Whether it’s HODLing, staking, or mining, there’s always an opportunity to make money with crypto. Now, some of these are pretty straightforward. You deposit your crypto and sit and watch your money grow. Or you HODL and move in one day when the market is particularly bullish. But other ways, such as mining, are not as straightforward. 

Making money via crypto mining takes more than buying hardware and starting to mine right away. You want your investment in hardware, electricity, and time to count. These 8 tricks will show you how to maximize your crypto mining profit to get the best returns on investment. 

#1. Do your homework

Doing background research is one of the first things you should do before you engage with crypto mining in any capacity. Crypto mining is already complicated, and the same way you can gain lucratively is the same way you can lose.

Start with mining equipment. Check whether the type of equipment you intend to acquire and deploy is outdated. Study whether the market is currently favorable – you may find that it’s more profitable to buy the crypto rather than invest to mine it.

#2. Check whether it’s a good time to enter 

Just like with everything, there are good and bad times to jump into crypto mining. For instance, during the crypto market’s incredible bull run in 2017, crypto mining hardware from manufacturers was pretty much sold out. Most of the profitable equipment could only be found in second-hand marketplaces selling it at exorbitant prices. These hiked prices virtually made any projected profits not worth it. 

This time may have seemed a good time to start mining, but with hardware speculators milking the market as much as possible, the conditions were not the most favorable. 

On the other hand, when cryptos are trading at a much-reduced rate, you may get mining hardware at much better prices both from the manufacturer and second-hand marketplaces. This way, you stand actually to profit from the equipment rebounds. 

#3. Switch to low hash rate cryptocurrencies

This is one of the best-kept secrets of the crypto mining world. Unlike popular belief, it’s possible to find a smaller cryptocurrency with a higher return on investment than a ‘mainstream’ cryptocurrency. Smaller currencies also usually have a lower hash rate, meaning you can contribute a larger hash rate and reap a bigger mining reward. 

This means keeping an eye out on all the other markets, not just the ones you’re currently mining. If you’re using a GPU, you have even better chances. GPUs, unlike ASICs, have the flexibility of being able to mine different cryptocurrencies. 

#4. Mine brand new cryptocurrencies

Mining a new cryptocurrency can be very profitable – sometimes. When a new crypto enters the market, there’s a phase of euphoria as the creators crank up the hype, creating interest in the currency. As a result, the currency in question might have considerable value in the first few days, weeks, or even months. 

What you need to do is be there at the very start. Depending on the currency, you can mine with GPUs, as ASIC manufacturers have not yet had time to develop an algorithm for the particular currency. Due to the unpredictable nature of cryptocurrencies and especially brand new ones, you want to quickly exchange the earnings for more reliant cryptos or Fiat. 

#5. Start small

This is universal wisdom for getting into any kind of business endeavor. It’s much truer for a market as volatile as cryptocurrency, isn’t it? When you’re new in the space, there’s so much you need to learn, and any rushed moves are highly discouraged. 

When you start small, any losses are also less painful. You also build the right skill set as you learn what works and what doesn’t. After you’ve figured out how crypto mining works, you can scale up. 

#6. Explore various scaling choices 

There are so many ways you can scale your crypto mining operation. This can be replacing aging equipment – which will lead to an increased heart rate while maintaining low expenditures and increasing your return on investment (ROI). 

You can also scale by buying mining capability from hash rate marketplaces. There’s also the option of cloud mining, where you purchase high amounts of hash rate for your favorite crypto or algorithm from companies that specialize in such. Whichever scaling method you choose, be sure to avoid third-party risk by doing appropriate research beforehand. 

#7. Find cheap energy

We can’t overemphasize the importance of inexpensive energy when it comes to crypto mining. Electricity is usually the largest expenditure involved in crypto mining. So when you save on energy costs, that’s more money for your bottom line. 

Also, depending on the region and electricity cost, your equipment may be profitable or not. In some parts of the world, energy prices tend to fluctuate instead of being constant. Some professional miners actually migrate in pursuit of cheap energy. 

The point is, you can increase your ROI if you find cheaper energy. You can even talk to your utility provider and see what’s the best rates they can provide. Again, this depends on your locale. 

#8. Join a mining pool

Now, we’d be remiss if we didn’t include joining a mining pool in this list. A mining pool is a group of miners who combine their computational power so as to discover new blocks faster. If the pool succeeds in finding a blog, the block reward is shared proportionally to each contributor’s processing power.

Why should you join a mining pool? Because the more the computational power, the more the likelihood for discovering and processing new blocks. As you can see, an individual miner would have a big challenge – financially and otherwise, assembling that kind of power. While going it alone doesn’t mean you’ll never see profits, it means they will be few and very far between. On the other hand, you stand a better chance to earn smaller but more frequent rewards with a mining pool. 

Final Thoughts 

Crypto mining is a great way to make money. Whether you’re a veteran in the scene or just getting started, these tips will help you make the best of your mining endeavor. Good luck! 

Categories
Cryptocurrencies

BitBox02 Hardware wallet Review: How Safe Is The Bitbox Hardware Wallet?

Bitbox02 is a hardware crypto wallet developed by Shift Cryptosecurity AG, a technology company based in Zurich, Switzerland. It has a minimalistic design but packs a wide range of highly effective security features. And this falls in line with its mission of providing users with a secure and independent hardware wallet. According to the Shift Crypto website, the hardware wallet was developed by an international team of programming and crypto security specialists as an improvement of BitBox01.

Some of this wallet’s key features include an OLED display and invisible touch sensors for ease of navigation and a secure element, multi-signature support, and enterprise-grade encryption. In this review, we will be vetting BitBox02’s safety and ease of use by detailing its key security features, its step-by-step activation guide, number of supported currencies, and its pros and cons:

Key features:

Solid architecture: BitBox02 is ultralight, weighing only 12g. It is also made from a highly durable polycarbonate that can resist such elements as heat and water.

OLED display: BitBox02 features a white and 128*64 pixels OLED display. It plays a key role in easing in-wallet navigation and is large enough to fit a wallet address.

Invisible touch sensors: In addition to the OLED display is a range of invisible touch sensors that line up the sides of the wallet device. These also play a key role in navigating the wallet and approving outbound crypto transactions.

Desktop and mobile app compatible: BitBox02 is a cross-platform hardware wallet. It has a compatible desktop app for all the popular desktop operating systems like Windows, macOS, and Linux. Their website also hints at an upcoming mobile crypto wallet.

Multi-wallet: The wallet’s software is available in two downloadable data sheets; the BitBox02 multi and BitBox02 BTC. BitBox02 BTC ensures that the wallet will only support Bitcoin Cryptocurrency, while BitBox02 Multi supports popular cryptos.

Security features:

Password: Both the BitBox02 hardware wallet and compatible BitBox02 apps have a password as their primary deterrence against unauthorized access. You get to set both when activating the wallet and creating a user account.

Open-sourced: BitBox02 hardware wallet is highly transparent in that it is built on a fully open-sourced technology. This implies that both the app and the wallet firmware are open for viewing and auditing by wallet users and crypto security experts.

Secure element: BitBox02 wallet’s secure element is made up of dual chips that are used to store your encrypted private keys. The dual-chip architecture is designed using proprietary technology. They are also reinforced with a monotonic counter technology that limits the number of login attempts and a password stretcher that extends the amount of time required between login attempts while erasing the wallet contents after 15 unsuccessful attempts.

Instant backup: The BitBox02 hardware wallet comes with an SD card that you can use to back up your private keys. Unlike most other hardware wallets that provide you with an easy-to-forget recovery seed, the BitBox02 hardware wallet presents you with an SD card that you can use to back up your recovery seed instantaneously.

Enterprise-grade encryption: Your private keys, passwords, personal data held in your BitBox02 wallet is highly encrypted using the AES-256-CBC technology. Your wallet’s communications with other third party websites and systems are also subjected to end-to-end encryption.

Two-factor authentication: Outbound crypto transfers must also be subjected to two-factor verification processes.

Cold storage: Your private keys and any other personal data held in the wallet is held in offline cold storage. This gives you absolute control over your private keys and their backup.

FIDO-certified: BitBox02 wallet is FIDO certified as a Universal two-factor authenticator.

How to set and activate the BitBox Hardware wallet

Step 1: Start by ordering your BitBox hardware wallet on the Shift Crypto website.

Step 2: Download the BitBox02 desktop wallet app that’s compatible with your computer operating system.

Step 3: Plugin the hardware device (ensure the SD card is inserted)

Step 4: Chose a name for the wallet and create a unique wallet password.

Step 5: You will now have access to the BitBox02 wallet dashboard. Start by agreeing to the security information displayed to proceed.

Step 6:  On the ‘create a new wallet’ tab, enter your preferred wallet name, and create a password

Step 7: Remove the SD Card and keep it safe.

Step 8: The wallet is now active and ready to use

How to add/ receive crypto into your BitBox Hardware wallet

Step 1: Start by logging in to the BitBox02 wallet.

Step 2: If you are operating the multi-crypto wallet, select the coin you would like to receive

Step 3: Copy the wallet address or QR code and forward it to the party sending you crypto.

Step 4: Wait for the funds to reflect in your account.

How to send Crypto from your BitBox Hardware wallet

Step 1: Log in to your BitBox02 wallet

Step 2: If you are operating a multi-cryptocurrency wallet, select the coin you wish to send

Step 3: Enter the recipient’s wallet address and the amount of crypto you wish to send

Step 4: Insert the BitBox0 hardware wallet

Step 5: Confirm the transaction details on the hardware device and authorize the transfer by pressing the invisible touch sensors on the device.

BitBox Hardware wallet ease of use

The BitBox02 hardware wallet package doesn’t give you a manual/user guide, just a link to their website printed on the packaging box’s underside. It, however, is quite easy to use. Setting up the wallet, linking it with the desktop app, and creating a user account is quite straightforward.

Interacting with the app by sending or receiving crypto into the wallet or backing up your digital assets is also quite easy. And all these play a key role in making BitBox02 the most user-friendly hardware wallet.

BitBox Hardware wallet supported currencies and countries.

The number of cryptocurrencies supported by the BitBox02 hardware wallet depends on the firmware installed. You can choose BitBox02 BTC that will only support Bitcoin and Litecoin or BitBox02 multi that supports a wider range of cryptocurrencies.

You can also integrate the app with MyEtherWallet that makes it possible for you to support BTC, LTC, ETH, and 1000+ tokens.

BitBox02 wallet can be shipped to virtually every crypto-friendly country in the world.

BitBox Hardware wallet cost and fees

BitBox02 hardware wallet retails at €99.

You will only have to pay the variable crypto transaction fee when sending cryptocurrencies and tokens to another wallet or exchange.

BitBox Hardware wallet customer support

BitBox02 hardware wallet distributors have a highly responsive customer support team accessible via email or such Shift Crypto official social media pages on Facebook, Twitter, Instagram, Telegram, and follow their blogs on Medium.

What are the pros and cons of using the BitBox Hardware Wallet?

Pros:

  • BitBox02 hardware wallet has a strong emphasis on security.
  • It is easy to backup and recover your wallet using the SD card.
  • It is compatible with both desktop and mobile apps for easy navigation.
  • You can integrate MyEtherWallet that expands the number of supported currencies.
  • It is easy to use.

Cons:

  • Will only support a limited number of coins and tokens.
  • The screen is really small.
  • One may consider their €99 price tag restrictive.

Comparing BitBox Hardware wallet with other hardware wallets

BitBox Hardware wallet vs. Ledger Nano S wallet

Bitbox02 and Ledger Nano are both crypto hardware wallets that take pride in the number and effectiveness of integrated security features. Some of their similarities include integrating two-factor authentication, sleek design, and the fact that they both store your private keys in offline cold storage.

But unlike Ledger Nano S that supports 1000+ cryptocurrencies and tokens, the BitBox02 hardware wallet will only support a handful of crypto assets. Plus, while Ledger Nano S presents you with a set or recovery seed that you can use to backup your private keys. Unlike Ledger Nano S, however, BitBox02 has a simpler setup guide and supports multi-signature functionality.

Verdict: Is the BitBox02 Hardware Wallet safe?

Yes, BitBox02 hardware wallet embraces some of the most effective security measures. These include the fact that the wallet is open-sourced, is FIDO certified to serve as a Universal two-factor authenticator, two-step verification for outbound transfers, and backing up your wallet in an SD card. But these aren’t the only factors endearing BitBox02 to its users. Others include its rather straightforward setup process and its intuitive user interface.

Categories
Crypto Daily Topic Cryptocurrencies

What’s Injective Protocol All About? 

In this age of DeFi, project after project is competing to provide users all over the world with the most innovative products. Injective Protocol, a layer 2 decentralized exchange, is one of them. Injective wants to unleash the potential of crypto derivatives and borderless decentralized finance. 

The protocol supports cross-chain derivatives trading for multiple crypto products such as perpetual swaps, futures, CDFs, and more. In 2018, the protocol made it to the winner’s list of projects selected for incubation by Binance Labs. Injective wants to solve high latency, inefficiencies, and poor liquidity encountered by most exchanges today. 

Understanding the Injective Protocol

Launched in 2018, the Injective Protocol is a DeFi project that wants to enable decentralized and cross-chain spot trading and derivative trading of financial products, from perpetual swaps to CDFs, to futures and more. The platform utilizes ‘peg zones’ to realize a cross-chain trading infrastructure. This environment is also trustless, censorship-resistant, transparent, and with low fees. 

Highlights of the Injective Protocol

The Injective Protocol features the following highlights: 

#1 Layer 2 decentralized derivatives trading: Injective can support fast, autonomous and transparent trading 

#2. Trading opportunities: On Injective, anyone can create and trade on a derivative market of their choice by utilizing only a price feed. This increases opportunities for trading that are not found on other exchanges.

#3. Cross-chain trading: Injective supports a wide range of trading and yield generation activities across a variety of networks

#4. Community governance: The Injective Protocol will be governed by the community – in a true decentralization fashion. Any changes or updates to the protocol will be determined through a vote based on a decentralized autonomous organization (DAO) structure.

#5. Liquidity mining incentives: Injective users will have the ability to earn value through a variety of liquidity mining pools

Injective: Products and Technical Infrastructure

The Injective protocol is made of four key components: 

  • Injective Chain
  • Smart Contracts on Ethereum
  • API nodes
  • Front-end interface

Let’s take a close look at each: 

#1. Injective Chain

This is a decentralized sidechain solution that powers derivatives trading and supports a Trade Execution Coordinator (TEC) and a decentralized order book. The Injective Chain utilizes a Tendermint consensus mechanism to confirm and validate transactions. 

On the Chain, users can build derivatives through two ways: the Injective Futures Protocol and smart contracts. The Injective Futures Protocol allows traders to create, enter into, and execute decentralized perpetual swaps and CFDs. 

#2. Smart Contracts on Ethereum

As a token-based protocol, Injective is intricately linked with INJ, its native token. For that reason, major protocol interactions and token economics are implemented through various smart contracts, which are as follows: 

  • Injective Coordinator Contract: Implements orders and Injective’s derivative transactions both on Ethereum and the Injective Chain
  • Staking Contract: Manages core functions like token rewards, choosing delegates, and governance
  • Injective Futures Contracts: Smart contracts that allow traders to create and trade perpetual swap contracts on the market
  • Injective Bridge Contracts: A suite of smart contracts that manage the flow of info between the Injective Chain and the Ethereum network
  • Injective Token Contract: An ERC-20 contract for INJ token

#3. Injective API Nodes

Injective’s API nodes are responsible for two things: supporting transaction relay services and being the data layer of the protocol. 

  • Transaction Relay Service – This is a tool that formulates transactions and relays them to the Injective Chain. It also simplifies functionalities such as staking, voting, and governance.
  • Data layer – The API nodes also act as a data layer through which external clients can interact with the protocol. 

#4. Front-end interface

The Injective protocol is fully decentralized, meaning individuals and companies can use it in a permissionless manner. Injective has enabled a friendly front-end interface through which they can do so. 

The INJ Token

INJ is the native token for the Injective network. It plays several roles, which include the following: 

  • Protocol governance: The INJ token will be used as a governance mechanism. Token holders will be able to vote on the future of the project, network parameters, and protocol upgrades through a DAO structure.
  • Deflationary mechanism: The INJ token will be periodically bought back and burned so that it doesn’t flood the market – as a deflationary measure
  • Collateral backing: INJ can be used as an alternative to stablecoins in the protocol’s derivatives trading, as well as a collateral backing when users lock up tokens so as to earn interest
  • Incentive mechanism: The INJ token is used to reward participants for taking part in the network’s consensus
  • Proof of Security (PoS): When nodes stake in INJ and get the right to take part in the network consensus, which secures the network, they will be rewarded with block rewards

INJ Token Distribution

The INJ token was distributed in the following fashion: 

  • Binance launchpad sale tokens: 9%
  • Seed sale tokens: 6%
  • Private sale tokens: 16.67%
  • Team tokens: 20%
  • Advisors’ tokens: 2%
  • Ecosystem development tokens: 36.33%
  • Community growth tokens: 10%

INJ: Tokenomics

As of Oct 31st, 2020, the INJ token traded at $0.776922, with a market cap of $10,456,039, which places it at #470 per Coinmarketcap. The token’s 24-hour volume is $2,431,311, with a circulating and total supply of 13,458,281 and 100 million, respectively. INJ’s all-time high was $1.22 (Oct 23, 2020), while its all-time low is $0.662174 (Oct 29, 2020). 

Buy and Storing INJ

You can find the INJ token listed on several exchanges, including but not limited to Binance, HotBit, Poloniex, DCoin, Uniswap (V2), VCC Exchange, and Pancake Swap. The token is listed as a market pair with USDT, BTC, BNB, BUSD, and WBNB. 

Categories
Cryptocurrencies

MyStar wallet Review: How Safe Is This Multi-Blockchain Crypto Wallet?

MyStar Wallet is a mobile phone-based crypto vault designed and developed by Stargram Global, a Korean IT company specializing in Blockchain and entertainment products. On the MyStarWallet website, the crypto vault app is described as a “Multipurpose asset management (and) one-stop platform” for all your cryptocurrency needs. The site further refers to the wallet as a digital asset management tool focused on helping you store, send/receive, and secure your cryptocurrencies.

Though MyStarWallet is still relatively new to the crypto world, it stacks a host of operational and security features that set it apart from the competition. For instance, it is built on the Ethereum Network, which means that it provides users with access to the decentralized network and such amenities as the Dapp browser and the app builder tools.

In this MyStarWallet review, we will be vetting these features by looking at its commitment to safety, outlining the setup by step guide on using the wallet app, and telling you its pros and cons.

MyStar Wallet Key features:

Mobile app: MyStarWallet is a mobile-based app vault. It can be downloaded from either the Google Play Store or Apple App Store.

Multi-asset: My Start Wallet is also a multi-asset app vault. It hosts a significant number of cryptocurrencies and tokens, and that there is no limit to the number of private keys that you can store within the wallet.

Inbuilt exchange: MyStarwallet features an inbuilt crypto exchange where users can buy, sell, or exchange cryptocurrencies and tokens. The exchange is relatively secure, and transaction processing reliably fast.

Blockchain explorer: MyStarwallet also features the blockchain explorer that lets you keep tabs on the Ethereum network. It helps you monitor network events, news, important announcements like upcoming ICOs, and political and economic events or changes that may impact the crypto world.

Portfolio Tracker: Within the MyStarwallet app’s dashboard is the balance and transaction history tabs that help monitor your crypto activity. For instance, the history tab outlines your crypto inflows and outflows, and these go a long way in helping you create a crypto budget.

Address book: MyStarwallet also features an address book that integrates your phone’s contact list that simplifies how you send and receive Crypto. This effectively means that you can simply send Crypto to a contact address on your phone regardless of whether they have Mystarwallet installed or not.

Send Crypto via messenger: MyStar wallet also features a proprietary messaging platform, the Startalk Messenger platform that you can use to “Instantly send money while you talk.” This features messaging and video chatting and the remittance functionality that allows you to transfer cryptocurrencies and tokens via StarTalk.

Dapp browser: MyStarWallet integrates a Dapp browser, a decentralized browser that allows you to surf the web anonymously.

Create Tokens: In addition to the Dapp browser, MyStarWallet users now have access to the app builder tools that make it possible for them to create and successfully launch both decentralized token and ERC-20 tokens.

Mystarwallet security features

Password: Like most other mobile phone-based crypto wallet apps, MyStarWallet is password secured. The password deters unauthorized access to your private keys and serves as the crypto app encryption tool.

Recovery seed: When creating a user account on your MyStarWallet app, you will be presented with a 12-word backup seed. You will need this seed to recover lost private keys or restore the MyStarWallet on another device.

Two-factor authentication: Outbound transfers from the MyStarWallet app must be subjected to two-factor authentication. You have the option of adding your phone number when creating a user account for MyStarWallet that you can use to authorize outbound transfers or use the Authenticator apps.

How to set and activate the MyStar wallet

Step 1: Start by downloading the MystartWallet crypto app for your Android or iOS smartphone.

Step 2: Install and upon launching the app, click on the ‘Create a new wallet” icon

Step 3: Create a password for the wallet

Step 4: You will now receive the 12-word backup/recovery seed for the crypto wallet. Write it down on a piece of paper and keep it safe offline.

Step 5: Your wallet is now active and ready for use

How to add/receive Crypto into your MyStar wallet 

Step 1: Log in to your MyStarWallet app, and on the user dashboard, click on the ‘Receive’ tab.

Step 2: On the deposit window that pops up, copy your wallet address or the QR Code and forward it to the party sending you cryptos

Step 3: Wait for the deposit to reflect in your wallet.

How to send Crypto from your MyStar wallet

Step 1: Start by logging into the MyStarWallet app and clicking the “Send” icon on the user dashboard.

Step 2: If you have more than one types of cryptos stored in here, select the crypto coin you wish to send

Step 3: On the transfer window, key in the recipient’s wallet address and the number of coins/tokens you want to transfer

Step 4: Confirm the accuracy of the transaction details and authorize the transfer.

MyStar wallet ease of use

MyStarWallet is highly intuitive and very beginner-friendly. The processes of creating a user account are simple and quite straightforward. The user interface is very clean, with just a few carefully placed tabs that ensure you don’t need any expert help to teach you how to interact with the app. The processes of sending and receiving cryptos/tokens in and out of the wallet are also quite easy and straightforward.

MyStar wallet supported currencies and countries

MyStarWalet is eth-based and will only support Ethereum and such eth-network based tokens as the ERC-20 tokens.

MyStar wallet cost and fees

Downloading MyStar wallet, installing it on your phone, and storing cryptos and tokens therein is free. However, you will have to part with variable transaction processing fees (GAS) every time you wish to send cryptocurrencies and tokens from one wallet to another.

MyStar wallet customer support

You can always consult the MyStarWallet Blog or Wallet Guide sections of the wallet’s website to learn how to interact with the wallet app. This website also features an extensive range of video tutorials that outline everything related to MyStar, including the different troubleshooting techniques.

You may also want to reach out to the MyStarWallet customer support team by raising a support ticket, emailing them, or direct messaging them on social media platforms such as Facebook, Instagram, and Twitter.

What are the pros and cons of using MyStarWallet?

Pros:

  • It supports a wide range of eth-based cryptos and tokens
  • It is highly intuitive ad beginner-friendly
  • MyStarwallet is feature-rich and even integrates an inbuilt exchange
  • It makes it possible for users to send cryptos to a phone number or via Startalk messenger
  • It features a Dapp browser and Dapp builder that lets you create and launch ERC-20 tokens

Cons:

  • It only hosts basic security features
  • It will only support Eth-cryptos and tokens
  • It is not a regulated wallet

Comparing MyStar wallet with other multipurpose crypto wallets

MyStarWallet vs. eToro wallet 

Mystar and eToro are both multipurpose and multi-feature wallets that host a wide range of operational tools. And some of the common features hosted on both MyStar and eToro wallets include an inbuilt exchange and portfolio tracker. Both wallets are also beginner-friendly and feature highly intuitive user interfaces.

However, while eToro is a multi-blockchain wallet hosting cryptocurrencies built using different blockchains, MyStarWallet will only host eth-based altcoins. Further, eToro has a friendlier and highly responsive customer support team compared MyStarWallet. MyStarWallet nevertheless carries the day with the number of supported altcoins that include all ERC-20 tokens against eToro that will only support less than 20 popular cryptos. Moreover, they have made it possible for you to send Crypto to phone numbers and through messenger.

Verdict: Is MyStar wallet safe?

Well, the mobile crypto app has embraced several effective security and privacy measures around the vault aimed at keeping your private keys private and highly secure. These include securing the app with a password and enabling two-factor authentication, as well as providing you with a backup and recovery seed. However, we must mention that the online nature of the wallet plus the fact that it stores your keys in your phone, not cold storage, exposes it to such threats as hacking and malicious viruses.