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Why Crypto Market Is Down Today: Global Reasons

Why Crypto Market Is Down Today: Global Reasons

June Katz 6 min read
The bitcoin exchange rate has experienced a lot of falls in recent years, but in the end, it has recovered every time and reached new heights. In the last six months, almost all cryptocurrencies have significantly dropped in price. At the end of last month, after a prolonged fall, the first cryptocurrency began to show some positive dynamics, gaining a foothold at $ 32 thousand. Against the background of the rising inflation rate in the United States (almost 9% per year), bitcoin rapidly flew down and reached $ 27 thousand. Then analysts said that with an increase in inflation, the BTC rate would inevitably fall. On Monday, June 13, the bitcoin exchange rate fell to a price of $ 25 thousand, and on June 19, bitcoin collapsed to $18,707 (according to the Binance exchange). The first cryptocurrency pulled other coins along with it. Ethereum has fallen in price and now costs about $ 1.1 thousand, Solana has lost as much as 18.2% in a week, and the exchange rate has dropped to $ 37 (at the time of 06/21/12) Reasons The collapse of the cryptocurrency market will not surprise anyone. Even though the cost of bitcoin and Ethereum has increased dramatically over the past decade, fluctuations in this market have become familiar. Among the reasons for the fall of the cryptocurrency, experts name three — of which Bloomberg considers inflation statistics in the United States to be the main reason: in June, the US Federal Bureau of Statistics reported that the main consumer price index (CPI) increased by 8.6%. Inflation excluding food products increased by 6%. This is a record since 1981, and the statistics turned out to be worse than analysts' expectations, which assumed an increase of 8.3% for the CPI and 5.9% for core inflation. The second reason is the tightening of monetary policy in different countries. First of all, the US Federal Reserve, which in May raised the base rate (according to which the Central Bank issues loans to commercial banks) by 50 basis points, to 0.75-1%. This is the strongest increase since 2000. Because of this, people prefer to invest in assets less risky than cryptocurrency. The cryptocurrency market is also affected by the collapse of the TerraUSD (UST) stablecoin and related proceedings, which undermined investors' faith in such projects, Bloomberg writes. After it lost its binding to the US dollar, the Luna cryptocurrency used for its release collapsed by 76.4%. Luna Foundation Guard, which is behind TerraUSD, spent $2.9 billion in bitcoins to protect the binding of the token to the dollar — almost all of its reserves. On June 10, Bloomberg, citing sources, reported that the US Securities and Exchange Commission had launched an investigation into Terraform Labs and its algorithmic stablecoin TerraUSD. The regulator will examine whether the platform violated the rules for protecting its investors. Shares of Crypto Companies Also Fell The negative dynamics of the cryptocurrency affected the shares of industry-related companies on the stock market. In particular, the value of Coinbase Global Inc. paper has dropped by 13% since the beginning of the year, Marathon Digital Holdings Inc. — by 24.4%, and Riot Blockchain Inc. — by 21.7%. After spending "hundreds of millions of dollars" on campaigns, sponsorship agreements, and advertising at the Super Bowl, most cryptocurrency firms have reduced marketing costs. This is reported by The Wall Street Journal.  Binance CEO Changpeng Zhao said that crypto winter is the right time to hire new employees and further develop the business. Activity in the sphere has been reduced by Crypto.com and Gemini Trust. The first, after spending $40 million in January, allocated $2.1 million in May for commercials on the eve of the Super Bowl. The second one spent $478,000 last month — eight times less than in November ($3.8 million). Terra Crash The Terra incident is undoubtedly one of the highest-profile events in the history of the crypto industry. So far, no DeFi project has reached such gigantic proportions before its collapse. In March 2021, Terra launched an application called Anchor, which offered profitable deposits, which forced people to buy Terra to then deposit it into their account and get a 20% profit. This attracted a lot of new investors. The dizzying growth of Terra USD (UST) and the popularity of algorithmic stable coins have been a crypto trend for a long time and inspired many developers to create similar projects and reserve crypto funds. However, everything changed in a matter of days: on Wednesday, May 11, Terra USD lost its peg to the US dollar — its price fell below $ 0.23. The LUNA cryptocurrency used to issue the stablecoin has fallen by more than 80%. Some market experts believe that the Terra incident, regardless of the outcome, will have serious consequences for the cryptocurrency market. Blogger Dennis Porter noted that regulators use the collapse of UST as the main argument in favor of total regulation of stablecoins and promotion of CBDC. US Treasury Secretary Janet Yellen said that the unbinding of Terra USD exposed the need to "create a regulatory framework for stablecoins aimed at minimizing volatility." According to experts, the main reason for the "death" of LUNA was the weakening of the binding of the UST stablecoin to the US dollar. It was TerraUSD (UST), according to the creators of Luna, that was supposed to become a "bridge" between tokens and fiat, but in practice, it turned into a disaster. The path to the rebirth of Terra, if at all possible, will be long and thorny. After all, the main problem lies not in the technical component or the mechanism of binding to fiat, but in restoring user trust. Mutual Influence of Markets Bitcoin is increasingly tied to the world market. And, accordingly, it becomes dependent on its fluctuations. The dynamics of bitcoin this year are almost identical to the fluctuations of the US Nasdaq Composite stock indexes, which are dominated by shares of technology companies. The indicator has dropped by 8.3% since the beginning of the year. Sentiment in traditional markets and cryptocurrency markets can mutually influence their dynamics, analysts at the International Monetary Fund (IMF) say. "A sharp decline in bitcoin prices may increase investors' flight from risk and lead to a reduction in investments in stock markets," experts write. Summary The exchange rate is based not only on promises but also on faith in these promises. The more faith the promisee has, the more stable the course. Recently, more and more analysts are predicting a collapse of Bitcoin almost to zero. According to Guggenheim Partners director Scott Meinerd, bitcoin will fall to $8 thousand, bitcoin critic Peter Schiff admits a rate of $10 thousand, and Galaxy Digital founder Mike Novogratz is confident that the "crypt" will fall further. However, such prophecies in no smaller quantities accompanied every protracted decline in the cryptocurrency market which each time regained its position. Against the background of the fall of cryptocurrencies, the founder of the world's largest crypto exchange Binance Changpeng Zhao has repeatedly said that digital money cannot be evaluated by its falls. He wrote: from a historical point of view, "if you bought bitcoin every time the headlines "bitcoin is dead" appear, you would have succeeded." Zhao backed up this statement with the fact that in 2011 bitcoin fell below $ 20, in 2015 - below $200, and in 2017 — below $ 2000. And in 2022, bitcoin fell below $ 20 thousand. Zhao does not doubt that the leading cryptocurrency will begin to rise in price at auction. But it is worth understanding: when exactly bitcoin or ether will go up, no one can predict now.
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How Big Is the 2022 Crypto Crash? A Historical Perspective

How Big Is the 2022 Crypto Crash? A Historical Perspective

Ruth Kise 5 min read
This year started with a significant decline in the cryptocurrency market, which did intensify because of the geopolitical situation. Since the fall of 2021, crypto has been passing through the bear market and this trend continues to this day. And over the past one and a half to two months the main cryptocurrency has collapsed in price by almost 60%. Are Crypto Market Crashes Really Bitcoin Crashes? The correlation between cryptocurrencies has always existed to various extent. Altcoins depend upon Bitcoin because of the formation of primary demand for digital currency around it. Almost half of all coin investments are in BTC. Large investment portfolios include Bitcoin as a core asset. All large exchanges hold the bulk of liquidity in Bitcoin, as the largest volumes of transactions occur in trading pairs with BTC. Although the dominance index has shown steady growth in altcoins investment since 2017, Bitcoin still holds 40% of the entire market. The closest competitor, Ethereum , is 2 times behind it. Thus, when Bitcoin collapsed from $48.2 thousand to $28.9 thousand, it dragged down all the altсoins. Ether is down 52% since January 2022 and now costs $1,800, Solana is down 74% to $45.87, Cardano is down over 64% and costs $0.4909. If you're a newbie, then you might feel like it's a complete collapse of cryptocurrency. And seemingly with a good reason, because such a sharp and long drop in prices was a long time ago. However, the market has already faced crashes more than once. So we will look at the most important cases of bitcoin drops: The Largest Bitcoin Drops to Date It should be mentioned that any drop in prices is associated with their growth, and vice versa: a kind of swing that leaves no investor indifferent. 1: The Rollercoaster of 2011 The very first shock caused an unexpected rise of Bitcoin from $1 to $30 in early 2011. However, this wave of growth was followed by a staggering drop in the asset price in June 2011. During the period from June 8 to 11, the price of BTC fell by almost 50%, reaching $14.65. Such a sharp jump is explained by the sudden increase in the hashrate to unprecedented values. Also, mentions in some mainstream media played their role. On June 19, 2011, the Mt.Gox exchange was hacked , bringing down the price of Bitcoin to $0.01. It affected the accounts of 60 thousand users totaling more than $8.7 million. One week later, trade on Mt.Gox recovered, and the fall in prices after the hack became the largest in the history of Bitcoin. 2: The New Heights of 2013 The next shattering experience awaited investors for two whole years. In 2013, the volatility of major cryptocurrencies set new records. BTC set a new historical high of $1,147. Against the background of general euphoria among crypto investors, the coin did not stay above $1000 for long - very soon a bear trend began, during which the BTC fell to $694. The next time the cryptocurrency was able to overcome resistance again at the level of a thousand dollars only in January 2017. 3: The Final Misadventure for Mt. Gox In February 2014, the Mt.Gox site was hacked again, this time 744 thousand bitcoins were stolen. It is an absolute record and the biggest hack in the trade to date. As a result of the hack, Mt.Gox filed for bankruptcy and closed, creating panic in the bitcoin market. From that time on, the first prolonged fall of Bitcoin began, which is commonly known as the "cryptocurrency winter." 4: The Time When Even Your Grandma Learned About Crypto The end of 2017 is remembered for euphoria due to the achievement of a new peak in the price of Bitcoin. True, in the same month, the value of the main digital asset began to fall rapidly - a week after the formation of the historical maximum on the line of $20.000, BTC dropped to $13.000. 5: The Comedown of 2018 The fall continued into 2018 and marked a new crypto winter. In January, the coin fell to $9,800. The lack of centralized regulation left the question of safety open. In the first nine months of 2018, $927 million worth of cryptocurrencies was stolen from platforms of different countries, according to a CipherTrace report. Also at the beginning of the year, phishing mobile applications of larger exchanges were distributed, which stole customer data.  Great interest in cryptocurrency and the ICO market has led to the emergence of many scam projects. It all ended with the biggest social networks - Facebook, Instagram, Google, Twitter, Snapchat, Baidu, Weibo - rolling out a ban on any ICO ad, no doubt a blow across the industry. So on the 14th of November, BTC cost $6,359, and already on November 25, the rate was $3,729. 6: The Great Expectations (vs Reality) Another memorable crypto drop took place in late 2019. The main topic in the community was legal issues, the struggle of the US Securities and Exchange Commission (SEC) with bitcoin-ETF, and hopes for the launch of the institutional bitcoin service Bakkt.  In September, Bakkt finally launched but did not attract much attention among institutional investors, triggering a drop from $10,036 to $6,657 in just a couple of months. To Sum Up High inflation in the US stock market and general global economic instability were naturally reflected in a decrease in risk interest among investors. In addition to the situational panic against the background of the fall of UST, the tightening of the monetary policy of the FRS and the end of the "bull" trend in the technology sector, which includes cryptocurrencies - the main current reasons for the fall of the market. The current market crash is not the largest in history, although due to large capitalization, absolute numbers are really large. The price of Bitcoin has been able to increase by several hundred to 60 thousand dollars, so you should not worry about short-term calendar cancellations.  On the other hand, there are some coins that have less correlation to BTC and it could be a fine new trend. For example, BNB with a well-built all-in-one ecosystem and Launchpad. BNB began to actively master one of the largest markets - the American one. As a result, the position of the currency will only strengthen, which makes it extremely promising for investment.  Clearly, the cryptocurrency will deal with all fluctuations - both minor changes during the day and severe monthly collapses.
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Investing in Crypto: Things to Do in a Crypto Winter

Investing in Crypto: Things to Do in a Crypto Winter

June Katz 13 min read
The first crypto winter was registered in 2014-2015 and lasted 427 days. At that time, the bitcoin exchange rate decreased by 87%, which negatively affected altcoin quotes. The situation was repeated in 2017-2018, when the growth of the bitcoin exchange rate, which began in the fall, was replaced by a sharp decline — from 20 thousand dollars per coin to 8 thousand, or even less. For several months now, experts have been speculating about the possible onset of crypto winter. New assumptions appeared almost every week, and the deadlines were constantly pushed back. It looks like it happened after all. However, the market is cyclical — a period of growth is always followed by a fall and vice versa. Any downturn creates enrichment opportunities, so in this article, we will look at the topic of investing in cryptocurrency. I will point out that we are not giving financial advice — we’re just collecting information about the main investment strategies, the main market participants, and patterns that may be useful. Crypto Investment Strategies There are different approaches to making money on investments in digital assets. We offer you to get acquainted with the three most popular strategies. Hodl Hodl is a popular term in the crypto community, which network users employ to denote the purchase of cryptocurrency for its long–term retention. Working under this scheme implies earning on the growth of the asset rate for a long time. For example, investors who purchased 1 bitcoin 6 years ago, as of the time of writing, were able to increase their investments by 17547%. Scalping The term scalping usually means income from short-term changes in the exchange rate of an asset. Most often, the influence of news on the digital asset market is used to make money using the scheme. Here's how it can work: An investor saw that a couple of minutes ago, Tesla published a report stating that the organization invested a large amount in bitcoin. It can be assumed that the news will positively affect the behavior of the cryptocurrency exchange rate. To make money on the market reaction, the investor buys bitcoin. At the moment when the cryptocurrency exchange rate starts to rise, the investor gets the opportunity to sell the asset at a higher price. The difference in the cost of buying and selling will become his profit. Also, for scalping, you can use technical analysis of the behavior of the asset rate according to the schedule. Averaging The essence of the strategy is to purchase an asset for an extended time on a certain day of the week/month (or with other frequency), regardless of the current position of the cryptocurrency. Market participants who choose this strategy believe that this approach allows them to earn money by averaging risks. Staking This term refers to the intentional retention of assets in the account, to organize a source of passive income. In the staking market, you can find offers with high profitability. One of them is available on the ROY Club platform. Within the walls of the site, up to 40% of new coins can be generated monthly on the UMI cryptocurrency staking. At the same time, you can start earning in a few minutes after registering in the system. All the steps that you need to go through to start earning are accompanied by detailed instructions. If necessary, the user will be able to get advice on working in a dialog box on the site. How to Increase the Efficiency of Investments in Cryptocurrency Many investors have their secrets to improving the efficiency of investments in cryptocurrency. Among them, there are several universal tips. Here are some of them: Investments should be diversified. A distributed portfolio of assets reduces the likelihood of losing all investments due to a sudden drop in the exchange rate of one cryptocurrency. There is no need to buy digital assets with the last money. The market can be unpredictable. It is worth investing only what you can afford to lose. Investments need to be planned. It is worth determining in advance how much you are willing to invest in cryptocurrency. Also, experienced market participants are advised to keep records and record all their operations in the market, so that, if necessary, they have information at hand to analyze the effectiveness of solutions. There are different investment strategies for users who want to make money on the movement of the cryptocurrency exchange rate. For those who are not in a hurry, the hodl scheme is suitable. Users who are ready for increased risk for the sake of instant earnings should pay attention to scalping. Those who want to combine the high profitability of different strategies with the security of investments may be interested in staking. Ways to Analyze Digital Assets Technical Analysis Technical analysis is based on historical market data because history develops in a circle and repeats itself. It includes an overview of past pricing trends. Technical analysis aims to identify recurring patterns and make calculated forecasts for the growth or decline of trends. The main assumption here is that prices are not random and they can be foreseen if you look into the past. Although technical analysis performed correctly can be quite useful and effective, it does not always work. In most cases, the success of technical analytics depends on the person conducting the research. That's why some people prefer fundamental analysis of crypto. Fundamental Analysis Fundamental analysis aims to cover a somewhat broader picture compared to technical analysis. It takes into account both qualitative and quantitative factors that can affect the value to understand whether an asset is overvalued or undervalued compared to its current market price. Since there are no public financial statements that can be verified on the cryptocurrency market, it is more difficult to do this type of analysis, especially for beginners. It is necessary to take into account the volume of transactions, user activity, the unique functions of the cryptocurrency, and even some global economic events that can significantly affect the cryptocurrency market. It is better for a beginner to learn how to use both methods. Understanding cryptocurrency fundamentals will help you make smarter decisions, plan your strategy both in the short and long term, and ultimately become a better investor. Choosing the Best Crypto to Invest In Polygon ( MATIC ) This is a level 2 cryptocurrency for Ethereum decentralized application platforms. Polygon is a promising blockchain ecosystem designed to develop infrastructure and help scale the Ethereum network. The Matic Network and the Polygon token also offered a second-level solution — transferring transactions directly on the Ethereum network to another coin platform. This allowed the Matic network to reach a speed of 7,200 transactions per second (TPS). For comparison, the throughput of Ethereum does not exceed 15 transactions per second. In 2021, the network was rebranded — it became known as Polygon. But in addition to the new name, it also has new functions. Now it is a platform for creating interconnected blockchain networks. In other words, with the help of Polygon, everyone can write their blockchain for any purpose. In the future, Polygon will become the basis of web3 networks. Loopring (LRC) A promising cryptocurrency of the decentralized exchange of the same name. To make DEX more scalable and reduce the commission, ZK accumulative packages are used. Loopring gives DEX the ability to choose between storing transactions on-chain or off-chain at any given time. This on-chain data availability (OCDA) combined with ring miners and order rings provides greater scalability of DEX. Loopring offline storage provides 16,400 transactions per second (TPS). Chainlink (LINK) It is the digital currency of the decentralized Oracle programming network. The goal of Chainlink is to solve the problem of securely connecting smart contracts to real events. Smart contracts are code fragments that embody a given business logic (for example, when to pay interest on loans). Ripple ( XRP ) This promising cryptocurrency project from San Francisco has become a truly global crypto intermediary (bridge currency) used in cross-border settlements. We are talking about multibillion-dollar transactions mainly between financial institutions, corporations, banks, and payment systems of all countries of the world ("payment corridors"). The second advantage of XRP is the phenomenal speed of financial transactions conducted in the Ripple ecosystem. It is more than 10 thousand operations per second (in particular, in Ripple Net the hash rate is at least 50,000 TPS). Cardano (ADA) It is a fully decentralized platform operating on the principle of open source. The distinctive features of Cardano are complete anonymity, the absence of restrictions, and other complicating circumstances such as KYC . It was created in 2017 and became one of the first ecosystems operating on the PoS (Proof-of-stake - "proof of ownership") network protocol. It is actively used in the architectonics of smart contracts and Dapps. The recommended investment horizon is from one year. Stellar (XLM) This is a promising cryptocurrency that is used in various systems — from gaming platforms to online stores. It was created in 2014. The main feature is the unification of various ecosystems and blockchains. Stellar is a universal medium of exchange with minimal fees for financial transactions. The cooperation of the platform with IBM and MoneyGram International. Criteria for Selecting Promising Blockchain Projects In 2009, Bitcoin was the only cryptocurrency on the market. Today, the number of digital tokens has exceeded 1000. In such an assortment, it is easy to get lost even for experienced investors, not to mention beginners. When choosing the optimal cryptocurrency for long-term investment or earning on exchange rate fluctuations, we were guided by the following criteria: The fame of the project and its reputation; Capitalization size; The number of exchanges on which the selected cryptocurrency is traded; The number of coins in circulation; The volatility of the exchange rate and the dynamics of quotations; Technical data of the network; Social activity. Cryptocurrencies that are actively discussed on forums and in chat rooms have more prospects for growth. Conclusions It is quite possible to be friends with the risks that the volatility of digital assets carries. By carefully monitoring and analyzing all small price movements, experienced traders have learned to extract income from them by buying and selling coins at the right moment. Such a flair comes with practice, but at the same time, it is backed up by knowledge — studying trading tools, helps not only not to go into negative territory, but also to make a profit. Is crypto a good investment? The cryptocurrency market is volatile and unpredictable, and many experts do not recommend it for long-term investment. But bitcoin has been around for more than 10 years — and this is much longer than the same experts predicted. And although we are seeing periodic ups and downs, in the long term, the crypto market is still expected to grow consistently.
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Hard Forks, Soft Forks: What Do They Even Do (and What’s the Difference)?

Hard Forks, Soft Forks: What Do They Even Do (and What’s the Difference)?

June Katz 4 min read
It is impossible to know in advance what difficulties blockchain users will have to face in the process of its evolution. Sometimes the algorithms and ideas embedded in the development become untenable or ineffective. To continue using them means to lose competitiveness in the market, as well as the value of coins relative to fiat currencies. But to avoid such situations, developers resort to serious code modifications, which are called “a hard fork”. A fork is a procedure for branching the cryptocurrency blockchain, as a result of which two different chains appear. In the future, they continue to develop separately from each other. If developers make drastic changes, such a fork is called a hard fork. In that case, developers do not make minor changes, but radically change the algorithms, rules for issuing coins, methods of its distribution, as well as other parameters. As a result of such actions, a chain of blocks appears, which can no longer interact with the previous blockchain. There are two possible forks: a soft fork and a hard fork. The first is a mild kind of network modernization, old and new blocks remain relevant, a child is allocated from the parent chain. During a hard fork, a rigid modification of the program code occurs, all the old blocks are "forgotten", and the blockchain moves in two parallel lines. With a soft fork, some characteristics of the coin are optimized, and cosmetic improvements are carried out. If some of the nodes do not accept changes, they remain members of the network.  A soft fork does not put everyone before a choice. Small changes in the code allow nodes with outdated software to continue participating in mining . A new coin does not appear. Such an update often goes unnoticed by cryptocurrency holders.  This can be compared to the existence of an academic language and an adverb. Some people have chosen an adverb and communicate in it. However, native speakers of the academic language also understand them. The consensus persists. By activating the hard fork, developers are burying the old network. Users have to choose between two child chains. Famous Hard Forks BCH Fork Bitcoin Cash is a consequence of a hard fork — the coin separated from the original Bitcoin on August 1, 2017. The BCH team, led by Roger Wind, immediately launched an active campaign against the main cryptocurrency, but until that day it this did not bring results and this fork has already become part of bitcoin history. Ethereum Classic Fork Initially, the Decentralized Autonomous Organization (DAO) was conceived as a kind of venture fund, in which participants received a share based on their contributions to ETH. The project gained popularity and quickly collected 12.7 million ETH. At that time, the price of the cryptocurrency was about $ 250 million. After some time, the hacker found a vulnerability in the DAO code that allowed him to steal more than 3.6 million Ethereum coins. To prevent the fraudster from withdrawing money, the crypto community voted for the Ethereum hard fork, which returned the funds to most of the victims. London Hard Fork Vitalik Buterin, the creator of the Ethereum cryptocurrency, decided to release another update of the Ethereum 1.0 system to the last phase of ETH 2.0. The London hard fork has become the most controversial. Some users accepted the improvements well, as they allowed to reduce the commission amount. However, the manners were very indignant because of EIP-1559, since the reward for conducting transactions was greatly reduced. Why are Hard Forks Held? For official reasons, the developers point to the need to improve technology and optimize the network, but sometimes banal intra-network disassembly, fraud attempts, and a desire for centralization with passing earnings are behind forking. Often, the reasons for the fork are an increase in the block size (to increase throughput, transactions per second), a decrease in commission (to increase interest in the project), or a "loss of true vision" of the project. How to Fork a Cryptocurrency? To conduct a hard fork, developers inform the community of their intentions (the reason may be either an important update or a split of the network by different teams; in both cases, you need to prepare for this event). The height of the block at which all nodes will vote is publicly announced (for example, 346394). Accordingly, there will be sites that approximately calculate the date and time of the event. Then preliminary tests of the source code proposed for the fork are carried out. According to the results of the voting, the network is bifurcated, in any case. If no one undertakes to support the old branch, and everyone updates the client, then maybe some units of nodes will still mine /validate the old blockchain, but it will be considered abandoned. If opinions are divided, for example, 30% of miners will continue to mine the first chain, and 70% – the second. Then we will get two functioning blockchains.
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Ethereum Gas Fees: How to Make Sense of Them

Ethereum Gas Fees: How to Make Sense of Them

June Katz 5 min read
Just as bank customers pay a commission for the transfer, so do cryptocurrency users. And if in the case of, for example, Bitcoin , the commission amount is transparent and manageable by users, then Ethereum gas fees for the transfer are calculated in a more complicated way. The reason for this difference in the principle of collecting fees is that Bitcoin was created to conduct transactions between users. Ethereum was created not as a payment system, but as a tool for developing decentralized applications. The main function of Ethereum is different - maintaining the operation of smart contracts which is used not only inside the Ethereum network but also in the DeFi ecosystem. The Ethereum blockchain has limited bandwidth and is not adapted for conducting financial transactions, which is why any complex structures overheat it. Any major interference in the work of Ethereum will raise commissions, whether it is the work of smart contracts or the purchase of assets.  The growth in the number of users of the DeFi market has increased the complexity of the Ethereum system, which has led to an increase in commissions within the network and made them less predictable. How do transactions work on the Ethereum network? When sending a transaction in the Ethereum blockchain, a fee is charged in the form of "Gas", but what happens if you specify an insufficient amount? There are three scenarios for working with Gas. First: there was more gas than it took for the transfer. Then, all unspent gas will return to the sender at the rate at the time of dispatch. Second: there was exactly as much gas as needed. Then the payment will go through without any problems, nothing will be returned to the account. Third: there was not enough gas. Then the transaction is considered unconfirmed and canceled. Immediately after the cancellation, the Ethereum Blockchain will roll itself back to the state before sending, and the spent gas is not returned. Note that the blockchain cancels only changes made by an unconfirmed transaction. What is Ethereum Gas? Gas is a unit of measurement of computing work performed by miners to conduct transactions or support smart contracts of the Ethereum network. Gases were also introduced to stimulate miners: in the case of blockchain networks, the security of the network is directly proportional to its hash rate, that is, the number of miners. This system allows them to receive a commission commensurate with their resource costs, because the more complex the transaction, the more gas is required to complete it. The term gas can mean two things: gas limit and gas price.  Gas price The price of gas can be set by two authorities, depending on who you are dealing with. The first is the Ethereum blockchain itself, which sets the cost of fuel depending on its load. The higher the load, the higher the commission. The second is a smart contract created by a participant of the blockchain that you are paying for. When creating a smart contract, for example, to raise funds for an ICO or IPO, the contract creator sets the cost of commissions. The Gas price is measured in the minimum part of the Ethereum network – Wei. However, in almost all wallets, this parameter is shown in Gwei. Below is the fragmentation of ETH: 1 ETH = 1 000 finnely = 1 000 000 szabo = 1 000 000 000 gwei = 1 000 000 000 000 000 000 wei The three main units of measurement WEI, GWEI, Szabo and Finnely are named after famous people who influenced the formation and development of cryptocurrencies. WEI is dust from ETH, in reality, it is practically not used. The main area of use of WEI is writing code. Execution of one line of code in the Ethereum blockchain costs 1 WEI, it can be a smart contract code or any other operation. GWEI is used to pay the commission. Finney is something like a pocket change , equal to 0.001 Ether, intended for small transfers. Ether, aka ETH, is used for everything else. Gas limit The minimum amount for the transaction is 21 thousand units. It is recommended to set a higher Gas limit value to be sure that the transaction is completed successfully. If the amount of Gas is not enough for a successful outcome, the transaction will be returned with the status "unsuccessful". Regardless of what the result was, Gas is paid to the miner, since they have already spent resources on processing this operation. Usually, developers fix the value that is written off for the successful implementation of the smart contract. So, if you need to make a transaction, and you have set a Gas limit of 500 thousand Gas, and only 30 thousand Gas is needed to make a transaction, then only 30 thousand Gas will be written off from you. But if, for example, 500 001 Gas is needed to conduct a transaction, then the program will not give a result, and this amount will be spent. How to avoid high ETH gas fees and calculate the right number of Gwei to pay the commission correctly? Use https://ethgasstation.info — this service specifies Ethereum gas price calculation giving you recommended commission values for the transfer so the transaction will pass.  There is also an alternative from Etherchain - https://www.etherchain.org/tools/gasPriceOracle You can find an Ethereum gas tracker at https://ethstats.net When are Ethereum Gas Fees Lowest? There are also general patterns that you can focus on to know what is the best time for low eth gas fees. Even though Ethereum is a network available around the world 24/7 and 365 days a year, since the launch of EIP—1559 in August 2021, the base fees have generally been higher during business hours in the United States. Interestingly, the morning period from midnight to 8 a.m. Eastern time has a lower base commission compared to working hours in the United States (from 9 a.m. to 5 p.m.). In addition, gas is also cheaper on weekends. The cost of gas is also affected by the intensity of use of Tether , USDC, and NFT , which also increases during working hours in the United States. Regardless of the reason, all of this can provide an interesting opportunity for time-independent transaction planning. How will the launch of the new Ethereum 2.0 network reduce the commission? Now Ethereum is a blockchain based on PoW (Proof-of-work) or the computing power of miners. When switching to PoS (Proof-of-stake), the computational load on the network is expected to decrease. For example, in the Ethereum PoS sidechain, validators will take the role of miners mining cryptocurrency. To become a validator, you will need to freeze 32 ETH on the account. The Ethereum 2.0 system should increase the network bandwidth and should allow for more transactions per second. The point is controversial: if the number and speed of transactions increase, then the cost of Gas may also rise. In any case, to know for sure, you should wait for the transition of the Ether from PoW to PoS.
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Crypto Communities and Where to Find Them: Looking for Crypto Trading Tips, Discussions, and Fights

Crypto Communities and Where to Find Them: Looking for Crypto Trading Tips, Discussions, and Fights

June Katz 9 min read
There are many crypto communities on the Internet where people communicate on the topic of cryptocurrencies. There are so many that it is sometimes difficult to find really useful sites. Therefore, we have made a selection of crypto communities where crypto-enthusiasts can get new knowledge, tell about their experience and find like-minded people. Note that nothing in this article should be interpreted as trading advice. Neither do we necessarily agree with the opinions of the personalities and members of the communities mentioned below: we just think that discussions make the crypto world more vibrant and interesting. Reddit Cryptocurrency Boards The Reddit platform is built on discussion, allowing subreddit participants to benefit from the knowledge of more experienced participants. In addition, Reddit's boost and downgrade feature can help you distinguish useful information from harmful. Subreddits are small communities dedicated to a specific topic in the Reddit ecosystem. This has made Reddit a great tool for the fast-growing diverse crypto industry, where topics covering all aspects of cryptocurrency are discussed. Here is our selection of the 10 most popular subreddits for crypto enthusiasts in 2022. Crypto News & Discussion r/CryptoCurrency If you are looking for a reddit board with crypto news, the chances are good that you will find it in the Cryptocurrency News & Discussion community. With over 4.9 million members, it is the single largest crypto reddit. This subreddit is home to thousands of active users who are constantly sharing their opinions, analysis, and thoughts on a wide range of coins, tokens, and blockchain developments. Bitcoin for Beginners r/bitcoinbeginners This bitcoin reddit is one of the best places for beginners who are not familiar with Bitcoin and cryptocurrency in general yet. There are posts dedicated to teaching newcomers how crypto and blockchain technologies work, their future use, and the best ways to trade. The guides described in this subreddit are not limited to bitcoin and include the most popular altcoins . CryptoMarkets r/CryptoMarkets This is one of the best subreddits dedicated to crypto trading and market analysis. The participants also offer excellent information about cryptocurrency exchanges and various applications that will help you better analyze the market. Crypto General r/Crypto_General Although the name implies that this subreddit discusses general cryptocurrency topics, the emphasis is on high-quality, in-depth reviews on topics in various crypto areas. Altcoin r/Altcoin If you want to learn about any cryptocurrency other than bitcoin, then the Altcoin subreddit is for you. The discussions are based on news, trends, market indicators, and forecasts regarding cryptocurrencies such as Ethereum , Cardano , and BNB, as well as recently launched altcoins. DeFi r/DeFi The revolutionization of traditional financial services has made decentralized finance one of the most discussed crypto topics. This crypto subreddit is dedicated to informing you about all the developments in the DeFi ecosystem and how to use DeFi protocols. ICOCrypto r/icocrypto Discussion of new crypto projects that are about to be launched through initial coin offerings (ICO), mass sales, and token sales. Cryptocurrency Technology Focused Discussions r/CryptoTechnology This subreddit with more than 331 thousand participants is dedicated to serious technical discussions discussions about cryptocurrency and the underlying blockchain technology. Unlike most other similar subreddits, there are no discussions of cryptocurrency prices, market indicators, advertising content, or memes. Crypto Moonshots r/CryptoMoonShots If you want to find a crypto project that is about to make a quantum leap in its market capitalization, then you should visit this subreddit. Discussions are centered around the analysis of cryptocurrencies with low market capitalization and growth potential. It became a fan favorite, garnering more than 1.6 million subscribers. Bitcoin r/Bitcoin One of the oldest crypto-subreddits dedicated to the pioneer cryptocurrency closes the list. Since 2010, this community has focused on everything related to Bitcoin, from news to opinions, trading guides, and memes. Telegram Crypto-groups Subscribing to telegram channels is an easy way to keep up to date with the news, be the first to learn about all events, and receive trading signals and forecasts for digital assets on time. Unfortunately, not all Internet resources are equally effective, and the topic of cryptocurrency has always attracted scammers due to a large number of new, inexperienced users. Beware of "signals" and channels that seek to make money on their subscribers, promising profit. No one will give you the " secret of success" because there is none. Below is a selection of telegram channels about cryptocurrency. "Flagship Funds | Investments" Flagship Funds | Investments The author's channel of a Swiss investment fund specializing in decentralized finance and NFT . The channel tells in detail about the latest trends in the cryptocurrency market, NFT, DeFi, and initial placements (IDO/IFO). The channel's authors are recognized experts with many years of experience in the largest investment banks and funds. All information is presented in a structured form and is easy to understand. On the channel, you can get acquainted with reviews of transactions, analytics of initial placements, and investment ideas. “Altcoin & Bitcoin Trading” Altcoin & Bitcoin Trading Telegram channel about cryptocurrencies, specializing in technical analysis of the market, current news of the blockchain industry, as well as investment signals. “Rocket Wallet Signals” Rocket Wallet Signals Telegram channel about trading. Its authors publish cryptocurrency signals daily and assess the current market situation. There is a lot of information that appears faster than in the media. Rocket Wallet Signals can automatically execute cryptocurrency signals via a trading bot. The project will be useful for both novice traders and professionals. The authors of the channel give important explanations of the signals and regularly share the results of their work. Discord Cryptohub Cryptohub Discord A great channel for those who have just started their journey in the world of cryptocurrency. Here beginners can get basic knowledge and direction for further development. r/CryptoCurrency r/CryptoCurrency Discord This discord is the channel of the largest cryptocurrency subreddit, where there are subchannels about almost everything: trading, DeFi, NFT, farming, altcoins, mining , and whale transactions! Larva Labs Larva Labs Discord Larva Labs is the largest Discord NFT server created for discussing where you can buy and sell NFTs and get updates on what is happening in the crypto world around them. Spacestation Spacestation Discord Although the server was created as a community in which Ethereum miners communicated, now some subchannels cover almost all the main topics related to cryptocurrency. Twitter Personalities Vitalik Buterin (@VitalikButerin). The creator of the Ethereum blockchain, on which the entire sphere of DeFi and NFT sits tightly. An impressive (albeit eccentric) leader of the Ethereum community and an authority on the crypt. Barry Silbert (@BarrySilbert). CEO of Digital Currency Group and Grayscale, the largest regulated crypto company that creates "traditional" financial instruments based on crypto. Gavin Wood (@gavofyork). One of the main startupers in the crypt. Participated in the founding of Ethereum, Kusama Network, Parity Company, and the Web3 Foundation. He also became the founder of Polkadot and now writes mainly about it and the direction of Web3. Mike Winkelmann (@beeple). One of the most famous NFT artists of our time hails from the USA, known to many under the pseudonym Beeple. Paves the way for art in the fields of VR and AR, which in the future will have a great impact on the development of metaverses. Rekt Capital (@rektcapital). A trader who supports his forecasts about price trends with high-quality charts. Andreas Antonopoulos (@aantonop). Economist and author of bestsellers about crypto, bitcoin, and the global economy: "Mastering Bitcoin", “Mastering Ethereum" and “The Internet of Money". Brian Armstrong (@brian_armstrong). Founder and CEO of Coinbase. After it went public in the US in 2021, Coinbase became the most expensive crypto company in the world. Coinbase is the most popular crypto trading platform in the United States, and the company also operates in dozens of other countries. Cryptomedia Bloomberg Crypto (@crypto), CoinDesk (@CoinDesk), The Block (@TheBlock__), Cointelegraph (@Cointelegraph), Decrypt (@decryptmedia), Bitcoin Magazine (@BitcoinMagazine). On-chain analytics platforms Messari (@MessariCrypto), Glassnode (@glassnode), Santiment (@santimentfeed), CryptoQuant (@cryptoquant_com), CoinMarketCap (@CoinMarketCap), CoinGecko (@coingecko), Dapp Radar (@DappRadar), DeFi Pulse (@defipulse), Whale Alert (@whale_alert). Market news and analytics Income Sharks (@IncomeSharks), Bankless (@BanklessHQ), Bitcoin News (@BTCTN), Altcoin Daily (@AltcoinDailyio), Real Vision (@RealVision), Bitcoin Archive (@BTC_Archive), Documenting Bitcoin (@DocumentingBTC). Investment funds and investments Paradigm (@paradigm), Pantera Capital (@PanteraCapital), Blockworks (@Blockworks_).
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(Arguably) Top 5 Crypto Exchanges

(Arguably) Top 5 Crypto Exchanges

Ruth Kise 5 min read
No matter what, the cryptocurrency market doesn't lose its interest and draws plenty of customers, and investors increase their assets. If you are ready so far to operate with your digital currency, the next step is to open an account with a cryptocurrency exchange. To help you choose the right account for your needs, SwapSpace selected the best 5 crypto exchanges available today. Binance The world’s largest cryptocurrency exchange offers an extensive array of digital assets and trading pairs and also has lower fees than other exchanges. With Binance, you can do trading, withdrawals, and deposits without passing KYC and can do up to 0.006 BTC withdrawals every day. However, users who transact large volumes of BTC will need to complete the KYC procedures so that they can transact on the platform. Plus, US users would need to use Binance.US, and passing KYC for them is compulsory. The exchange also renders access to derivatives trading, lending, mining pools, Margin, and Future trading, and branded crypto debit cards. strong >Trading Fees Spot: 0.1000% – 0.1000% / Futures: 0.0200%/0.0400% + Discounts Payment methods Bank transfers, credit cards, or crypto deposits Withdrawal Limits Without KYC: 0.06 BTC / With KYC: 100 BTC / 24 hours Supports Android and iOS Coinbase Probably the most beginner-friendly platform with the same mobile app. It comes with an easy-use interface, a massive variety of altcoin choices, and very high liquidity. The crypto exchange also seems to be highly secure. They insure the digital funds and store US dollar balances in Federal Deposit Insurance Corporation and have no scam mentions. What’s more, the platform features its users' insured custodial wallet for storing cryptocurrency, which is also very easy to use for newbies. But the convenience costs its money - the transaction fees are high. And remember, that you don’t control the private keys , the platform owns it. On the other hand, there is a Pro version with a non-custodial wallet, lower fees, and more options in charts and indicators. Trading Fees 2% Payment methods Bank account, USD wallet, debit/credit card, ACH transfer, Wire transfer, and crypto conversion Customer Service Coinbase help page, emailed support tickets, an automated phone system, and a chatbot. Supports Android and iOS KuCoin This platform is another partial KYC exchange that is said to be one of the best alternatives for Binance as it provides a bigger range of altcoins at relatively lower fees than others. For users who pay with native KCS stablecoin , trading fees are decreased by 20%.  Speaking about cons, trading relies on US dollar stable coins, not fiat currency. Trading Fees Spot: 0.1% – 0.1% / Futures: 0.02% – 0.06% + Discounts Withdrawal Limits Without KYC: 5 BTC / With KYC: 100 BTC / 24 hours Payment methods Bank account, USD wallet, debit/credit card, ACH transfer, Wire transfer, and crypto conversion Daily trade volume $100 million Supports Android and iOS Interlude: Why do I need an exchanger aggregator? To make the right choice of an exchange platform, it’s clear you should study all directions from the position of the rate, reserve, number of payment methods, etc. For all these purposes, there are exchange aggregators, such as SwapSpace . Using it, you can see top crypto exchanges all at once, quickly analyze the situation and choose the best option from the entire available list.  The algorithm of actions in all cases is identical. the choice of the direction of exchange, review effective offers from exchange rate position, reserve, conversion type, etc., platform Feedback Control, etc. So there are two best swap cryptocurrency services. Changelly Changelly is a centralized altcoin swapping service that does not require its users to complete the KYC. Exposing the idea of privacy for its users, the exchange doesn’t even verify your submitted email address. The most anonymous platform allows instant transfers from one crypto wallet to another across various cryptocurrencies. As it said on its landing page, its main positive features are the fast speed of purchasing experience and high-level security. Trading Fees 0.5% Payment Wire transfer, credit card, PayPal Supports Android and iOS SimpleSwap We pick another swapping platform that allows instant transactions through exchanges. Without charging KYC verification, they typically deposit the funds within a few moments. The company has also launched a light crypto wallet that also supports a wide variety of crypto assets. The instant swap exchange is also easy-to-use for newcomers and has a 24/7 live chat feature, through which users’ issues can be resolved quickly, which is confirmed by a great number of positive user feedback. Trading Fees Floating Rate : 1.00% Fixed Rate : 5.26% Payment Credit card Supports Android and iOS Conclusion It is essential to choose the best crypto exchange according to your specific needs. So if low fees are important to you, Binance may be a good choice. Coinbase can be the best new user-friendly crypto app. KuCoin will become perfect if you want to trade some uncommon coins. When you are looking for extra privacy, swap services such as Changelly is the best exchange, while SimpleSwap could be perfect with its outstanding customer service. When combing through a list of leading platforms, it’s important to look at factors such as supported assets, fees, payment methods, and security. But right before opening an account, it is highly recommended to check their terms and policy documents.
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What’s Up with the Ethereum Upgrade? The State of the Network in 2022

What’s Up with the Ethereum Upgrade? The State of the Network in 2022

June Katz 4 min read
The entire crypto community is waiting for the release of the second version of Vitalik Buterin's cryptocurrency network. It will allow you to receive passive income for altcoin storage, increase the transaction speed by almost 70 times and forget about mining . It has long been known that Ethereum developers are planning to switch to Proof-of-Stake. This will mean the termination of the use of the Proof-of-Work (PoW) algorithm, - ETH mining by solving complex mathematical problems (mining). Now the key value will be played by the number of tokens that are stored on the user's account. The transition to Ethereum 2.0 is announced for 2022, the release date has been pushed back.  In a conversation with a blogger Compass Mining, key developers of Ethereum 2.0 Ben Edgington, and Tim Beiko said that everything is almost ready, but the 1st quarter of the year is already over, and the transition is not completed yet. Despite all its achievements, the low scalability and high cost of financial transactions remain the "Achilles heel" of the Ethereum network. There is a real danger of "competition for transactional space and the use of blockchain has already become expensive, but soon the cost of services may increase by another five times.  At the moment, the altcoin blockchain is capable of conducting up to 15 transactions per second. This indicator is more than two times higher than that of bitcoin . However, for a large number of users, this speed is not enough. For example, the Visa payment system can carry out up to 24 thousand transactions per second. The development of Optimistic Rollup will help solve the scalability problem. According to Vitalik Buterin, the creator of Ethereum, its implementation will occur after the altcoin network is updated. This will increase its throughput to 1000 transactions per second. As a solution, Buterin sees a departure from the verification model of each device in the network of each transaction and switches to a random verification model. Yes, this will slightly reduce security, but it will significantly reduce costs (up to 100 times from each transaction). Another solution to the scalability problem will be the introduction of sharding. Now the Ethereum network is a common database. After the update, the blockchain will be divided into autonomous, interacting shard chains, each of which will process its transactions and smart contracts . Vitalik Buterin in an interview with The Toronto Star stated that what he cares about is taking blockchain technology behind bitcoin that makes decentralized cryptocurrency possible and making it more general-purpose so that other things can be decentralized in the same way. Several big steps have already been taken to solve the problems facing the ecosystem. In the spring of 2021, The Berlin hard fork was launched. It was a network upgrade that changes the underlying Ethereum protocol, created new rules to improve the system, regulates gas fees, and adds new transaction types. Now it's the turn to launch the London hard fork which will go live on block 12 965 000 (On 15 April it’s 12,624,311).  London hard fork should solve the problem of mining centralization. The mining process in the Ethereum blockchain is gradually ceasing to be fair. Miners with a reserve of funds buy special integrated circuits designed for ETH mining. This gives them the ability to mine blocks faster than users with GPUs. As a result, ordinary miners with GPU began to underwork, and some of them switched to mining other assets. Ether developers are aware of the fact of the problem with the complexity of mining and plan to replace the consensus mechanism. Approximately in the 3rd quarter of 2022, the Ethereum blockchain will switch to the Proof-of-Stake system. When switching to the Proof-of-Work algorithm, the network operation will be provided by remote servers running the master node software. It can be a home computer or a laptop with a certain amount of funds. To participate in Ethereum stacking, you need to keep at least 32 ETH in your wallet. In June 2020, the number of addresses with more than 32 ETH was close to 120,000. In the first 5 months of this year, this value increased by 13%. According to the roadmap of the project, the annual return on stacking will vary from 1.81% to 18.1%. At the moment, the exact values are unknown. The profitability will depend on the number of participants. The more of them there are, the lower the amount of remuneration will be.  Together, the growing shortage of coins, increased demand, as well as the influx of capital from large investors can have a serious impact on the price and its growth, respectively. At the moment, the value of ETH has already exceeded $ 3,000. Sometime after the activation of the hard fork in London, the price may rise even more. The potential goal of ETH is to update the historical maximum, which is at around $ 4380. Thus, only if the record value is updated, investors can potentially make a profit of almost 50%. Unlike investors in the United States, who are still waiting for certainty in the regulation of the crypto market, investors in the CIS can already legally and safely invest in cryptocurrencies. You can exchange and buy cryptocurrencies on the SwapSpace crypto exchange .
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The Most Interesting NFT Examples: May 2022 Edition

The Most Interesting NFT Examples: May 2022 Edition

Ruth Kise 4 min read
NFT collections are digital objects created according to a single principle. These can be art, virtual land plots, music, and in general everything that can be stored in digital format. We have collected five (actually more) NFT collections of digital art that make up the top among the number of buyers on OpenSea and Looksrare NFT marketplaces. In the article, you will find out about what is in these collections, who their creators are, and how much the lots cost. Prices are relevant in mid-May, 2022. 1. Otherdeed for Otherside Otherdeed is the key to claiming land in Otherside - a 3D metaverse in the spirit of Dungeons and Dragons, that appears to offer a gaming format for Bored Ape or Mutants NFT holders. Each plot of land has a unique blend of environment and sediment — some with resources, some home to powerful artifacts. And on a very few, a Koda roams. As it’s claimed on the platform, there will be 200,000 Otherdeeds in total. The first 100,000 were available on April 30, 2022. The second 100,000 will be exclusively awarded to Voyagers who hold Otherdeeds and contribute to the development of Otherside. For those with Bored Apes or Mutants, Otherdeeds await their claim. For other adventures, it will be available for sale with ApeCoin . Creator: Yuga Labs Items: 97.9 K Owners: 34.4 K Floor price: 2.78 ETH Volume traded: 255.1 K 2. Azuki / BEANZ official Azuki starts with a collection of 10,000 avatars that give you membership access to The Garden - a corner of the internet where digital and physical worlds are blurred. Artists, builders, and web3 enthusiasts are creating this metaverse brand. By choosing one of the avatars, you choose your identity and get access to exclusive streetwear collabs, additional NFT drops, eventual live events, and much more.  Creator: TeamAzuki Items: 10.1 K Owners: 5.2 K Floor price: 8.66 ETH Volume traded: 231.1 K BEANZ (also created by TeamAzuki) are small species that sprout from the dirt in the Garden. Minted as a great friend to an Azuki, they're earnestly driven by the desire to help. However, peas are self-contained to a full degree and ready to pave their own path... Creator: TeamAzuki Items: 20.0 K Owners: 7.5 K Floor price: 1.05 ETH Volume traded: 57.5 K 3. PXN: Ghost Division One of these NFTs would be your login to the new dark side world, where every holder is a ghost. 100 Ghosts comprise one of 100 Regiments under the Phantom’s charge. All members are called to stand side by side to make a revolution and resist the shadow.   The collection of PXN (the underbelly of web3) counts 10,000 avatars and gives access to exclusive clubrooms for onboard NFT communities, and unique ways to interact with the community in web3. Creator: PhantomNetwork Items: 10.0 K Owners: 6.3 K Floor price: 3.59 ETH Volume traded: 25.5 K 4. Bored Ape Yacht Club/ Mutant Ape Yacht Club One of the most famous NFT collections of 10,000 unique Bored Apes— unique digital collectibles living on the Otherside, Ethereum blockchain. Your Bored Ape doubles as your Yacht Club membership card and grants access to members-only benefits, the first of which is the access to THE BATHROOM, a collaborative graffiti board. Future areas and perks can be unlocked by the community through roadmap activation. Creator: BoredApeYachtClub Items: 10.0 K Owners: 6.3 K Floor price: 92 ETH Volume traded: 565.5 K The MUTANT APE YACHT CLUB is a collection of up to 20,000 Mutant Apes that can only be created by exposing an existing Bored Ape to a vial of MUTANT SERUM or by minting a Mutant Ape in the public sale. Creator: MutantApeYachtClub Items: 19.1 K Owners: 12.4 K Floor price: 19 ETH Volume traded: 395.3 K 5. Doodles Doodles are a collection of exciting hand-drawn designs by Burnt Toast. The Doodles universe is ever-expanding and new experiences like Space Doodles are only now available to collectors. Each Doodle allows its owner to vote for experiences and map activations paid for by the Doodles Community Treasury - Doodlebank with $5 million USD. Creator: Doodles_LLC Items: 10.0 K Owners: 5.0 K Floor price: 14.5 ETH Volume traded: 127.2 K Of course, these are not all popular collections. Today there are many interesting offers of NFT tokens of very different formats, whether it's art objects, music, clothes, lands, or the opportunity to book a table in a secluded restaurant. Despite all the ups and downs, the great idea of being a member of Metaverse and the ability to convert literally everything to NFT continues to arouse audience interest and increase market demand. Choose what you like, join like-minded communities, or be the first in the worldwide implementation of the Metaverse.
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The Drawbacks of Centralized Crypto Exchanges: Binance Russia Case

The Drawbacks of Centralized Crypto Exchanges: Binance Russia Case

June Katz 4 min read
On April 21, Binance released an official statement according to which it will restrict access to its services for users who live in Russia and have assets worth more than $10 thousand. Such clients will no longer be able to deposit additional funds to their accounts or trade on the exchange. They will only be able to withdraw funds. In March, Binance denied that it was preparing to freeze the accounts of Russians, as this contradicts the concept of the cryptocurrency industry. The company said it was not going to impose restrictions on Russian bidders with the words: "Cryptocurrencies are designed to provide greater financial freedom to people all over the world. A decision to unilaterally ban consumers from accessing their cryptocurrencies would be contrary to what this industry exists for". It is worth saying that in the current situation, cryptocurrency is the only financial instrument that allows Russians to try to protect their savings from inflation. A few weeks ago, the Central Bank of the Russian Federation persistently convinced Russians that the cryptocurrency market is extremely risky for private investors and that the only way to save and increase their savings is through the Russian stock market and the national currency. Such news reminds us that one of the biggest problems of cryptocurrencies at the moment is the centralization of services. Blockchain processing requires a lot of computing resources and time. Therefore, ordinary users who just want to transfer a few coins prefer to use centralized services for this. Most Bitcoin users trust blockchain.info, Ethereum users trust myetherwallet, etc. If these popular wallets are compromised, the funds of a huge number of users will be stolen.. Trust in centralized services leads to the appearance of a single point of failure in cryptocurrencies, allows censorship, and endangers user coins. As another example, we can cite the protests of truckers in Canada, when the court froze the protesters' funds in cryptocurrency for millions of dollars. These events have shown us that the state has leverage to carry out censorship in the sphere of cryptocurrencies, which seemed to many before, was beyond their control. Unfortunately, any centralized financial institution can block access of their clients and users to funds: payment systems, banks, classic or crypto exchanges. The problem with crypto exchanges is that they operate based on issued licenses, they have services that are responsive to the regulator and the competent authorities of the countries that issued the license, up to criminal liability. Therefore, at the request of the regulator, a centralized exchange must restrict access or seize its client's funds. Centralization as solution Centralization is increasingly seen as a solution to problems. A large network is slowly synchronized, so many cryptocurrencies offer to use a limited number of trusted "master nodes", "witnesses", etc. to "solve the problem" of too many nodes in the network. The number of these trusted nodes may be different, but by using this method to solve scalability problems, developers are also destroying the decentralized nature of the blockchain, since the result of this will be the formation of a cryptocurrency with one functioning node that processes transactions very efficiently, without delays, confirmations, and forks, but in this case, the blockchain becomes unnecessary. Today, most users do not understand the technical details, so such centralized blockchains will continue to attract them, because centralized services will always be easier to develop and more convenient for the user. Decentralized Exchanges : an Alternative Decentralized exchanges (English Decentralized Exchanges, or DEX) are an alternative to CEX. Here you don't have to trust your assets to someone else. Unlike traditional CEX, transactions and trades on such platforms are automated using smart contracts and decentralized applications, and DEX acts only as a platform that only connects the buyer with the seller who wants to sell their tokens. DEX cannot be closed by any government and regulators, since no organization is responsible for them. But such decentralization has its price. This is a low trading volume, low liquidity, lower transaction speed, and a poor UI, as a result of which it is more difficult to work with such exchanges. Also, the differences between decentralized and centralized exchanges include the fact that some DEX bet on experienced users. For example, they do not have support services, and they also do not use fiat gateways, unlike CEX. Decentralized exchanges are aimed at more experienced users who work only with their wallets and want to fully control their digital assets. At the same time, they sacrifice other benefits provided by centralized exchanges. This is an easier user experience, a large trading volume, and higher liquidity. Examples of DEX’es are Binance DEX, Uniswap , and SwapSpace . Summary We have already written that although governments can't ban blockchain use they can marginalize it and slow down its growth until the necessary tools for control will appear.  If a few years ago the marginalization of cryptocurrencies was facilitated by its widespread use on the black market and opacity , now users' fears of simply losing access to funds due to belonging to any social group or nationality have been added to this. Of course, the listed risks do not outweigh the convenience of CEX for everyone, but it is important to understand that the original essence of cryptocurrency was that an ordinary user could be outside countries, governments, and banks, so attempts to take it away are very alarming.
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Mining Cryptocurrency on a Phone: How Does It Work?

Mining Cryptocurrency on a Phone: How Does It Work?

June Katz 4 min read
Cryptocurrency is distinguished from fiat money by the absence of a single digital bank and control over transactions and payments. It is stored and maintained in a decentralized manner, that is, on the wallets of millions of users around the world. If the bank is responsible for accounting for ordinary money, then in the case of, for example, Bitcoin , the blockchain is responsible for this, which contains records of all transactions ever made. Miners are rewarded for supporting the network, that is, combining transactions into blocks and calculating the key (hash) for the block. That is, people generate keys and try them until one fits. If earlier it could be done using a regular home PC, now it requires much more power. Mining Bitcoins using the SHA-256 algorithm requires so much performance from the equipment that even the most powerful processors are far from the past. And with the advent of ASIC chips, video cards are slowly starting to lose ground. Nowadays people practically do not let mobile gadgets out of their hands, so despite the growing difficulty of obtaining cryptocurrencies, developers have come up with how to mine crypto on phones. In this regard, the question arises, is it really possible to mine cryptocurrency on a smartphone? In principle, this is possible, although we can only talk about coins that differ significantly from "digital gold" in terms of the characteristics of their production. First of all, we are talking about mining on Android-based CryptoNight algorithm ( derived from CryptoNote). These include Monero (XMR), Bytecoin (BCN), and Digital Note (XDN). You can also try mining currencies such as Dash (DASH), Aeon (AEON), QuazarCoin (QCN), Fantom (FTM), MonetaVerde (MCN), or new little-known coins on your Android phone after they are added to applications. Popular apps for mobile crypto mining MinerGate This miner is a specialized pool that gives a chance to earn some crypto on a PC, tablet or mobile phone. The pool program distributes tasks between participants to combine their computing capabilities into a single network. Mining can be done via Wi-Fi or a mobile network. In the settings, you should set that mining can only be done via Wi-Fi or only when the phone is recharging. It is also possible to set the number of cores used for mining and prohibit operation if the battery charge is low. The device does not heat much during the extraction process. The calculation speed is low. It depends on the power of the smartphone and can vary quite widely, for example, on one (budget) gadget you can get 9 H/s, and on another (more expensive) – 17 H/s. But in any case, this is 10-20 times less than the average hand of a personal computer. You can earn about 10-12 BCN per day — 0.0015 USD. ARM Mineral This is one of the best mining apps for Android/IOS in 2022. Not bolted to a specific pool, very simple interface. In the free version, the user is shown a video advertisement of a binary options resource in full-screen format, it is impossible to disable it. The ad-free version is paid. The mining speed is 2.8 kH/s on 4 cores, 3.2 kH/s on 8 cores. The SHA256 and Scrypt algorithms do not run, the earnings for the rest are too small. At the same time, there is noticeable heating and unstable operation of the device under load. Is it worth it? Before mining on an iPhone or Android, you should ask yourself how appropriate it is to do this. Calculating the hashes of cryptocurrency blocks requires a serious and long-term load on the device, for which smartphones are not designed at all. The fact is that the phones do not have an active cooling system, and passive cooling does not provide a normal heat sink. This leads to rapid wear of the device. It should be noted that all the tests did not take into account the cost of used electrical energy and the wear and tear of equipment. If we take into account these factors, the income from mobile mining will not be comparable with the costs.
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What Is a DAO And How Does It Work?

What Is a DAO And How Does It Work?

Ruth Kise 10 min read
Until recently, the concept of blockchain was only known in the context of cryptocurrencies, but today this technology is actively used in business. What's more, the new acronym DAO is entering the mainstream. So the "untraditional" business model appears along with JSC and attracts the attention of business enthusiasts more and more. DAO Definition and Key Features DAO (decentralized autonomous organization) is a company that is based on blockchain technology, managed using smart contacts. It does not have owners in the traditional sense, as well as controlling and governing bodies like the board of directors. In other words, decentralized autonomous organizations lack a hierarchical structure, and all participants in the ecosystem have the same rights and can vote for changes in the protocol on an equal basis with other participants. strong >Main features of DAO: In contrast to JSC, the «command and control» structure in formal union of groups of people is not applicable in this case. There are no executive boards and the company is managed by the community by voting on any relevant matter relating to the activities of the organization; Instead of traditional hiring, a person receives a smart contract based on the project. After that, the members of the community discuss the offer and vote. After its adoption, the work of the executive begins directly; Quitting is also becoming a consensual issue. So, if a person does not cope with the tasks set for him, token owners who voted to hire him can withdraw their votes, leaving the employee "overboard." Thus, possible conflicts are excluded in the DAO due to lobbying for the interests of certain persons; Agility and flexibility to innovate. This is due to the fact that companies are organized not around people, but around values​ and smart contracts . In a peer-to-peer system, much faster. In a "flat" organization, the community can rally faster and "fund" the best and most promising idea. As noted above, decisions are made by vote; Absence of meetings and colleagues in the traditional sense. DAO organizational policy Note that DAO is also characterized by the presence of internal company policies, but it has a number of differences. In classic business, in particular, management determines the actions of the entire organization. In the case of DAO, the value is the main factor on which all efforts will be focused. Therefore, every community member, who decides the future of the compound protocol, is motivated to bring the maximum benefit without looking back at the leader’s wishes. Since the DAO model does not involve a centralized hierarchy, it relies on alternative approaches, such as token-based memberships. Typically, such governance tokens can be freely purchased and filed on decentralized exchanges , or earned by providing liquidity or computing power for mining or staking. In any case, by holding governance tokens, you become a kind of shareholder and gain access to voting, which determines the organization's development strategy. Managing the DAO: What Are Governance Tokens? Governance token — a token that allows its owner to take part in the management of an organization. Thanks to governance tokens, users can propose, discuss and make changes to the project, and they do not need to rely on the project team or require its participation. "DAO is an organization that can operate on its own, using code, without anyone's responsibility for decision-making," explains blockchain enthusiast Travis Miller. "Imagine a corporation without a CEO." In addition, participants can use tokens to delegate voting rights to other users and monitor the distribution of funds allocated to support the project. DAO in Crypto: Examples The first thing you should note is that the meaning of the DAO economy is to attract users to actively manage and develop the ecosystem of a particular platform. As a rule, users who participate in voting can receive a reward. Thanks to Ethereum , the built on smart contracts infrastructure of DAO has appeared in the crypto industry. There are few examples of DAO including Maker, Compound, Forth ( Ampleforth ). DAO Maker DAO Maker — is a decentralized platform based on Ethereum. It was the first who made it possible to create DAI stablecoins , and various other cryptocurrency assets are accepted as collateral. One of the main features of the DAO Maker platform is that the DAI stablecoin is always equal to US $ 1 per 1 DAI unit.  Since this is DAO on the platform uses governance tokens — MKR, a million of which were distributed between the first users of the platform. In the DAO Maker ecosystem, MKR tokens are used as the "fuel" of the entire system, just as gas is used in Ethereum. As soon as the commission is paid, the received MKR tokens are destroyed (burned). New MKR tokens are released as needed, so the system is constantly in a certain balance. Compound Another of the largest credit protocols in the DeFi. In addition to interest on issued loans secured by cryptocurrency, it charges creditors COMP tokens to motivate the community to issue more crypto loans. COMP tokens allow their owners to make decisions about changes to the Compound protocol. When the user enters tokens into the Compound pool, in return he receives cTokens. These cTokens represent the depositor's share of the pool and can be used at any time to redeem the underlying cryptocurrency originally deposited in the pool. For example, when deposited in an ETH pool, in return you will receive a cETH. Over time, the exchange rate of cTokens of the underlying asset increases, which means that you can exchange them for a larger amount of the underlying asset than you originally invested - this is how the interest distribution occurs. Ampleforth This is an Ethereum-based cryptocurrency with an algorithmically regulated number of tokens in the circulating offering. It is intended for use as the base currency of the new decentralized economy and is an asset that is not subject to demand inflation and remains independent of the price movement of other cryptocurrencies, in particular bitcoin (BTC). Besides AMPL the platform has governance tokens FORTH. Ampleforth has a 6-step protocol change process. When the proposal successfully passes the first five stages, the FORTH holders vote for the proposed change. If a majority is reached during voting, then the change is automatically made to the protocol. DAO Pros and Cons Pros: There is no hierarchical ladder, so a separate group or control center cannot make decisions that ignore the interests of the rest of the participants. Decentralized management system. With this approach, the actual power passes into the hands of only those persons who are really interested in this and are ready to develop the project. All rules, requirements and conditions for working with the DAO platform are known in advance and can only be changed with the approval of most owners of control tokens. As a result, only really useful offers "pass." All transaction records are publicly available, eliminating asset fraud. Cons: Slow response to threats. If something atypical happens, you need to vote among all governance token holders to solve the problem. At the same time, the decision must first be prepared by someone, which also requires certain costs. As a result, the reaction is very slow, which threatens potential problems. The development also requires a vote. Moreover, you need not only to offer a further way of development, but also to find an executor who will be ready to do the work. It slows down the development of the DAO platform. Despite the high potential of blockchain in managing systems, it hides many risks associated with protocol security. And history knows the hard chapter with the first DAO case in 2016, when the platform was hacked . But it connected with the organization of decentralized and open platforms. Anyway DAO attracts a lot of enthusiasts from different business areas, and has been already realized in such spheres as art, culture, gaming, automatizing and so on.
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