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Ethereum Gas Fees: How to Make Sense of Them

Ethereum Gas Fees: How to Make Sense of Them

June Katz 6 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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Mining Cryptocurrency on a Phone: How Does It Work?

Mining Cryptocurrency on a Phone: How Does It Work?

June Katz 6 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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How to Buy And Trade Crypto (And Why)

How to Buy And Trade Crypto (And Why)

Ruth Kise 15 min read
The world’s recent events are causing more and more people to think about the safety of their savings. More and more of them choose to invest in cryptocurrency. Here, for example, your wallet belongs to you only, and no one can freeze your assets; on the other hand , the responsibility of the safety and all operations rests only with you. Therefore, you should first understand the following points. What You Need to Know Before Going into Crypto Getting acquainted with the world of cryptocurrencies is better to start with a choice of strategy. Investing or trading are the main ones. The first implies the acquisition of an asset and long storage. The second is short-term speculation. A trader makes many transactions with digital assets, trying to benefit in a short period. Strategy 1: Investments There are a few types of investments in crypto: Buy and hodl You can buy Bitcoin , Ether, or any other coin for fiat and wait for its rate to increase. If handled properly, such an investment will bring a big profit after a certain time. However, no one canceled the negative scenario for cryptocurrencies, and their value can fall sharply, up to a complete depreciation. Besides, such an investment method means investing not even for months, but for several years or more. Put in a trust This way, you invest in a trader who makes transactions on a cryptocurrency exchange and receives your interest. But still, there is a high risk of loss of invested funds because no trader is secure from damages. ICO You can invest in a cryptocurrency company and become its “stockholder”. The disadvantage of this method of crypto investing is the choice of a valid company as well. Strategy 2: Exchange Trading Trading cryptocurrency is an extremely risky craft. The price of altcoins is volatile, on a day it can fluctuate by 10–20%, sometimes by 50% or more. For this reason, it is better to try trading cryptocurrency from a training account first. The largest cryptocurrency exchanges, such as Binance, Coinbase, Huobi, OKEx, and others, allow users to open demo accounts for transactions without making a deposit. This will allow you to get acquainted with the market and the structure of the trading platform, and practice. Then you can deposit a small amount on the exchange. This will help the user understand his psychology: is he able to suffer losses and not make panic, erroneous transactions, control himself and decide with a cold head. In addition, it is necessary to study the theory, listen to lectures on this topic, take courses, and get acquainted with technical and fundamental analysis. All this will help not only to see in the charts the ups and downs of assets but also to predict them. Other Considerations: Fees Transaction fees are an integral part of most blockchain systems. They perform two important functions. They reward miners or validators, who help confirm transactions, and protect the network from spam attacks. Depending on the activity of the network, the transaction fee can be small or high. Its size is also derived from market conditions. Getting Ready to Take Part in the Crypto Market When you are ready with the strategy, ‌choose the best altcoins to buy. Today there are 2290 coins. Some of them are junk, but some can be very advanced. To make the right decision first you must make an analysis of it validity. It is best to start with Coinmarketcap – there is a rating of all cryptocurrencies by capitalization and a lot of useful information. No matter how reliable the crypto is, you can't trust it with 100% of the investment. It is better to distribute money to several tools, so you can reduce the risks of loss. For long-term investments, experts often say that you should choose cryptocurrencies that are in the top 30 at least. They are more stable, traded on many exchanges, and the probability of a sudden scam is minimal. Less popular coins also can be considered for investment. But it is worth understanding that, besides the risks of the fall in rate, there is also a risk of the slip-off. Follow all social media and forums, and monitor its activity: the more useful news on the topic, the better. If you see the developers do nothing, there is no news, then this means that they have lost interest in their project. It's better not to buy such a coin. It is also important to know if there is activity from investors. Also, some coins can operate only on one blockchain, and some you can use on different. So if you are going to trade your funds, ‌keep it in mind and learn about the cross-chain process.   Storing Crypto When you are ready to buy crypto , you must choose the type of its storage. Cryptocurrency wallet – an app, program, or separate device for sending, receiving, or storing electronic money. They are also can be “hot” and “cold”. A hot wallet connects to the internet and could be vulnerable to online attacks, but it’s faster and makes it easier to trade or spend crypto. A cold wallet typically has no online connection, so while it may be more secure, it’s less convenient. Below there are five types, with a brief description of their advantages and disadvantages: Software Wallet (Bitcoin Core, Exodus). These wallets store crypto funds right on your computer. And you usually need quite a lot of space for this. For example, for a minimum installation of Bitcoin Core, you need at least 145 GB on your hard drive - and this is for only one currency; Online Wallet (Blockchain, Wirex). These wallets keep your coins in the cloud. You can use them from any device, even from your phone. But you need to choose the wallet carefully. If someone hacks it, you will lose all. Hardware/ Cold Wallet (Trezor, Ledger). These wallets are separate devices, so they are much more difficult to hack than a regular computer. But you need to carry them constantly, as well as remember the PIN. Mobile Application (MyCelium, Breadwallet). An IOS or Android app that allows you to manage your tools. Convenient, easy, and fast storage, but with low security. In addition, if your phone was lost, the finder will get full access to the wallet. Paper Wallet (WalletGenerator.net, MyEtherWallet.com).  A special site generates private and public keys , that can you can print or record. Also, remember that except for a sheet of paper on which the keys are recorded — they are nowhere else, so the loss is equivalent to the loss of all the money. For investment, cold wallets are better. Thus, you can keep cryptocurrency on a computer or flash drive. Plus — security, no one can steal funds without direct access to it. For trading, the exchanges are the best. Using it, the client can sell or buy crypto and use additional options. Crypto Exchanges When choosing a cryptocurrency exchange, a novice investor needs to focus on some indicators. Such as: Financial turnover of the crypto platform. Large financial turnover shows enough money in the closures of the exchange, meaning that many traders use such a platform. So, such an exchange is high quality and the trader will not have any problems with it. The reputation of crypto exchange. Fees, which are not the same everywhere. For residents of different countries, crypto exchanges can also set geographical limits. The number of trading pairs on the cryptocurrency platform and their market rate. Payment options: find out how and how quickly you can transfer money to a crypto exchange account, and then withdraw it to your account or card. All cryptocurrency exchanges are divided into: Centralized Cryptocurrency Exchanges ( CEX ): Coinbase, Gemini, Kraken Platforms, where users can trade cryptos and ordinary fiat. They coordinate cryptocurrency, trading on a large scale, using a similar business model to traditional stock exchanges. Centralized exchanges usually offer their customers support, various trading pairs, and gateways for receiving and withdrawing, as well as additional services, for example, stealing , storage capabilities, IEO or DeFi services. Decentralized Cryptocurrency Platforms (DEX): WavesDex, Bancor, Besk, Uniswap Unlike traditional CEX, on such platforms, transactions and trades are automated by using smart contracts and decentralized applications. This type of crypto exchange is much safer since a well-written smart contract will not allow hackers to hack it. There are also aggregators like SwapSpace, where you can look at several offers and choose the crypto exchange that suits you best.  Swapping Crypto If your end goal is not just to put the purchased crypto in a stash, then you can exchange it for another coin. Swapping is a similar process to trading but with more flexibility. You can exchange any cryptocurrency for another even if the pair is not live on-the-spot market. This eliminates paying transaction fees more than once. In most cases, if you’re only swapping a small amount, convenience is the bigger concern here. That said, crypto swapping applies to any level of volume. Buying Crypto with a Credit Card The fastest way to buy crypto is to use a credit card. The process for buying crypto with a credit card is fairly straightforward: Find an exchange that allows credit card transactions. Your first step is signing up for a crypto exchange that allows you to use a credit card. And be ready to pass the KYC . Double-check that your card issuer allows crypto purchases. Enter your payment method. Set up your transaction. Pay off your balance as soon as possible. Pros and Cons of Buying Crypto With a Credit Card Pros Investing without cash on hand. Potentially earning rewards on your investment. Cons Purchases are often treated like cash advances. Higher fees. Your credit score could take a hit. Even more risk. Bottom Line Digital asset trading needs to be taken seriously, calculated every step, and thought about possible negative consequences. The beginner should first decide whether to invest or trade. Then study the theory, take some courses, and practice with test mode. Then choose the cryptocurrency to buy and be ready to lose. There is no game of luck. Don’t neglect crypto education. Crypto trading is hard work. It may take years to understand how the price of assets behaves in a particular situation. Don’t trust anyone and don’t hurry – do your own research before deciding. Choose the proven platforms for transactions and do not fall for fraudsters' ploys.
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How to Buy Crypto with Fiat Easily at SwapSpace

How to Buy Crypto with Fiat Easily at SwapSpace

June Katz 3 min read
In case you haven’t noticed, SwapSpace does not only collect exchange offers from some of the best crypto-to-crypto exchanges but also allows you to buy crypto with fiat! In this short tutorial, we’ll take you through this process (of course, you can go here yourself and see how easy this is). 1. Choose the Currencies and Amounts Make sure you pick “Buy crypto” in the widget on SwapSpace’s main page. Enter the amount of money you want to spend and choose the currency: Pick the cryptocurrency you want to buy: And click the “View offers” button. 2. Pick an Offer As of now, buying crypto for fiat is available at SwapSpace through our partner Mercuryo*, so you should see their offer on the right-hand side of the screen. Click the “Exchange” button next to the offer. *In the future, we aim to expand the list of our partners, so you will be able to choose the partner that suits you best. 4. Enter the Recipient Wallet and Agree on the Exchange Terms Type in the recipient wallet — the wallet address where you would like to receive your crypto funds after the purchase. Or, alternatively, you can connect your wallet (we support Trezor and Simplehold). After clicking “Next”, you will have to agree with special terms and conditions; please read them carefully and click “Next” again. You've successfully created an exchange! 5. Sign in to Use the Service Sign in with your e-mail address or a phone number. You will get the security code and will be asked to enter it before you can proceed. 6. Complete the KYC If this is your first time using Mercuryo, at this point you may be asked to undergo the KYC procedure. In this case, you will have to complete a couple of additional steps by following the instructions on the screen. Luckily, Mercuryo's team is quite thorough with the instructions, so this process is quick and painless! First, you will be asked to upload a photo of your ID. Then you’re going to provide a picture of yourself. That’s it! While you’re waiting for your data to be checked (which usually takes 5–15 minutes), you can proceed with the transaction. Your money will be safe: the transaction will be complete only when you successfully pass the KYC, otherwise you will get a refund. 7. Transfer Your Funds Select your preferred method of payment. The supported payment methods are Visa, Mastercard, Apple Pay, Google Pay. Choose the one that you prefer, fill in the necessary details and click the button with the fiat sum on it. This will transfer your funds to Mercuryo.  8. Await the Exchange Finalization Wait for the purchase to be processed. You will see the message that your payment has been successfully processed at the end of the exchange. As you see, the process is pretty straightforward — and if you still have any questions after this tutorial, we’re here to help!
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Buying Crypto Without KYC: Why, How, and Where

Buying Crypto Without KYC: Why, How, and Where

Ruth Kise 7 min read
More and more countries are beginning to adhere to the norms of KYC and AML, which have already entered ‌force in the European Union and the US. According to them, financial institutions must know their client (KYC) and resist money laundering, scams , and hacking. According to KYC, these databases are checked against various law enforcement agencies' watchlists . Therefore, identification is used to prove that the trader complies with the law and has the right to make transactions. In addition, verification is a method of insurance. For example, in the event of a cyber-hack or a technical failure, the trader will be able to prove that he owns his account and can get his funds back. KYC: Cumbers and Risks To verify the exchange, users might be required to make a passport photo, a selfie with a passport, a photo with the address of the place of registration in the passport, a driver's license, a TIN, and sometimes even an electricity bill. Verification may be required after account registration and/or at the time of withdrawal. In addition, if the transaction seems atypical or suspicious to the moderators, they will require additional documents from the user, for example, confirmation of the source of income (contract).  Due to this, the process can be inconvenient for users – transaction processes are delayed, traders lose on rate changes during verification, or the exchange may block the account because of formal inconsistencies in documents, although the trader trades honestly. Another point is that the requirement to provide documents contradicts the key principle of cryptocurrency – anonymity, freedom and lack of control over the movement of the financial flow . Moreover, providing data to minimize the likelihood of fraud also carries some risks: data leaks are almost inevitable; your data can be shared with third parties and government agencies; leaked or stolen data can be used in an attempt to steal your coins (phishing). Thus, the desire to keep anonymity is so clear and it is still possible. Privacy is Legal First, let’s say that privacy is one of the internationally fundamental human rights. You don’t break the law if you operate within the imposed limits on cash payments (usually around $10,000). And if some users prefer to remain anonymous, some simply want to start trading as quickly as possible, without wasting time waiting for confirmation from the exchange administration; this does not mean that they are necessarily fraudsters. So if you are one of those who wants to stay anonymous and ready to lake risks – the following information will help you ‌make the right choice and deal with your crypto safely. Where to Go to Avoid KYC Most of the crypto exchanges allow you to operate anonymously, but some have withdrawal limits and can feature partial KYC verification. Let’s overview usable types of exchanging platforms: Altcoin Trading Exchanges Binance To open an account on this world’s largest cryptocurrency exchange, you only need an email address. After it users are free to deposit, withdraw , and trade up to 0.06 BTC per day without KYC verification. Spot trading on Binance doesn’t also need verification. However, users who transact large volumes of BTC will need to complete the KYC procedures so that they can transact on the platform. KuCoin This one also offers a wide variety of coins to choose from, as well to purchase with a credit card. All in all, it is a great alternative to Binance. The blockchain imposes withdrawal limits up to 5 BTC per day without KYC. IDEX This decentralized cryptocurrency exchange is specially designed for trading Ethereum and Ethereum-based tokens ( ERC-20 ). To identify themselves, traders only need their wallet addresses. After unlocking your Ethereum wallet, you need to deposit tokens on the exchange, and you can start trading. Also, we should say that if you are going to trade cryptos for fiat, then you should expect to do KYC as well. But there are some ways to get cryptos without ID. Peer-to-Peer Exchanges P2P exchanges don’t hold users’ funds, but rather connect buyers and sellers. HodlHodl   A noncustodial Bitcoin exchange provides escrow service by creating a multi-signature wallet between the users. They do not force you to fill in KYC details, therefore giving you the option to stay anonymous. HodlHodl has a rate of 0.6% shared between both parties and no limits.  Bisq It is the world’s only fully decentralized p2p exchange with a 0.001 BTC – 0.001 BTC rate. This platform is one of the most advanced in the industry and lets you sell and buy bitcoins for fiat. However, it still has low volume and might be difficult for new users. AgoraDesk This fully non-custodial exchange offers a variety of benefits. However, if you want to buy bitcoins for cash, you can find a person who will sell you bitcoins at a meeting – the exchange supports the purchase and sale of BTC for cash. It even offers cash by mail, no KYC, noJS mode, Tor, and I2P, and not even email are needed for registering.  Instant Swap Exchanges Another way is to use instant swap exchanges, such as the ones offering their services at SwapSpace , where you can avoid KYC and currency limits. Such platforms do not require account creation, and they have a large variety of coins to choose from. Xchange The platform provides competitive rates and high transaction volumes. It also operates both web and CLI versions, and can therefore be utilized inside Tails, or Whonix operating systems. StealthEX StealthEX is a privacy-focused noncustodial cryptocurrency swap exchange. They provide over 300+ assets with limitless trading potential. Additionally, StealthEX swaps can also be done through the Telegram bot. SimpleSwap This platform has an extensive set of over 300 different altcoins to choose from, no signs ups are required. It offers both fixed and floating fees, and unlimited swaps, of course. What can trigger KYC? However, blockchains are still on the lookout for frauds and some transactions can cause random identification requests. So there are few trigger events that can cause selective verification.  Going over the withdrawal limits. Unusual transaction activity. For example, an unusually short period of holding funds or frequent selling of coins at significant losses. Also, larger and unusual transactions in cash form also can seem to suspect exchanges. Rise of suspicion that your tokens have a criminal background. If you are going to operate with big amounts, check your Bitcoins for cleanness.
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How to Recognize a Crypto Scam: 7 Warning Signs of Pump-And-Dumps And Other Fraud

How to Recognize a Crypto Scam: 7 Warning Signs of Pump-And-Dumps And Other Fraud

Ruth Kise 8 min read
As you start using cryptocurrencies, you realize that, since crypto is a new financial mechanism, such transactions are associated with risk. Every month dozens of new tokens and apps launch. Blockchain technology is developing, and even experienced investors may find it hard to keep up with its rapid pace. We are not talking about the unpredictability of markets. The crypto market opportunities grow the interest among a broad pool of investors and automatically pander to frauds. Among successful blockchain-related startups and legitimate cryptocurrencies, attackers still try to warm themselves into users' confidence. We've talked about some scams before — now it's time for a deeper look. The Most Notable Scams of 2021 According to Chainalysis reports crypto scammers stole around $7.7 billion from people through various crypto frauds and pumps-and-dumps this year. Here are some of them: Squid Coin A cryptocurrency inspired by the popular show "Squid Game" created significant hype among investors reaching values of around $3,000 in a matter of few weeks. Even legacy media fell for this altcoin . But the developers abandoned the project and fled, robbing investors of $3.36 million. It was a rug pull — a malicious method in the cryptocurrency world, where crypto developers abandon a project and escape with the funds they got initially. SavetheKids Charity Token The cryptocurrency was promoted by e-sport social media influencers as a token that redistributed the wealth of charities. Followers were scammed into buying the coins but later drawn into various pump-and-dump schemes that devalued the currency. In this scheme, proponents typically artificially pump the crypto price up through false advertising and ruthless promotion to sell their tokens and pocket the profits, while investors watch their money going down the drain. Africript South African brothers Ameer and Raees Cajee created the cryptocurrency exchange service called Africript in 2019. Both vanished after announcing that $3.6 billion in bitcoins was stolen from their platform as a result of a hack. However, the story is still unclear, and investors pointed fingers at the Cajees, trying to compensate their funds. Bored Ape Yacht Club NFTs Crypto fraudsters tricked Calvin Becerra into sending over three NFT digital art pieces from the 'Bored Ape Yacht Club' collection under cover of technical support. It is counted that each of them was worth $225,000. But Beccera declared the three apes were together worth $1 million. Poly Network Poly Network is a decentralized finance platform that went through one of the biggest hacks of the year. A hacker found a fault in the protocols that let more than $600 million from users' accounts transfer to his wallet . However, the hacker was a 'white hat hacker' (a nod to the term defining an ethical hacker that tries to expose security flaws so they can be fixed before a nefarious actor comes along). In a few weeks, the hacker returned the complete sum of money and even got rewarded $500,000 by the Poly Network for exposing the vulnerability. How To Recognize a Crypto Scam? There are several methods fraudsters use to manipulate you. Some signs below can help you avoid crypto frauds and keep your funds safe. 1. Hurry. In most cases, scammers hurry their clients and try not to give them time to understand what is happening. Often they use manipulation and threats for this purpose. Do not go along with those who try to confuse and rush you, do not forget to get acquainted with all the available information. Do your research, find the project white paper, and read through it. The document should lay out the background, financial models, legal concerns, SWOT analysis, and a roadmap for implementation. 2. Social media promotion. If suddenly the people you follow (except for known financial experts) are talking about a cryptocurrency, stop and ask yourself, why is this media influencer doing this. It's best to check out whether the project has its website and social media presence. Go straight to the source instead of relying on information from third parties. 3. Exclusive information. To attract attention, fraudsters use a ruse about secret trapdoors in the system. On social networks, fraudsters often share information about an allegedly erroneous exchange rate or successful exchange chains. Both are the loss of money. 4. Low data verification requirements. If you got requirements to operate with tokens in payment systems with low data verification, such as QIWI, then you should take this very carefully. Fraudsters very often use the features of these systems in their favor. For cryptocurrencies, these are non-refundable transactions. 5. Too good to be true. Refuse if you see offers that promise outstanding gains such as free coins and NFTs – often extending into double or triple figures. Pump-and-dump schemes also fall into this category, where the costs of digital assets are bloated, provoking investors to get applied for fear of missing out. Then they’re left holding cryptocurrency that’s worthless when the price suddenly falls. 6. Cryptocurrency trades. Take a look at how it goes. If it's on a well-regarded exchange, it's more likely to be a safer asset. Legitimate companies and endeavors make the system itself and the progress of the token sale easy for probable investors to view. Look for the token sale figures as the ICO is going on. Better yet, monitor the token sale over time to see how it is moving. 7. Fake applications. Another common trick that cryptocurrency investors often fall for is fake applications placed on Google Play and the Apple App Store. Although such applications are usually quickly recognized and removed, some users may become a victim. Thousands of users make such a mistake and download fake applications for working with cryptocurrencies. Investments are always risk-related. In addition to the currency crash due to economic or political movements, there is a risk of hacking the smart contract of improperly secured blockchains. Crypto exchanges also can be hacked . But where risk is high, there are more opportunities. To keep funds a far lesser degree of danger, learn how to properly manage your risks. And the last piece of advice: select and operate only with trusted exchanges with licenses verified by users — such as those offering their services through SwapSpace .
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Understanding Fixed and Floating Exchange Rates

Understanding Fixed and Floating Exchange Rates

June Katz 4 min read
Today, daily crypto exchange volume averages tens of billions of dollars. If you’re one of the people who participate in the cryptocurrency market, it is essential to know the differences between two key notions: fixed and floating exchange rates (sometimes referred to as the exchange flow ). Fixed vs Floating Exchange Rate: The Definitions An exchange rate shows how much money you’ll give to receive the same value but in a different currency. To put it simply, you can see how much of one currency you can gain for another currency. Fixed and float rates have been used on the market long before cryptocurrency came into existence; these notions apply to both traditional and digital currencies . The floating (or flexible, standard, classic) rate depends on actual free-market forces; neither governments nor trade limits interfere with them. The price of a cryptocurrency fluctuates all the time in response to how much crypto is present on the market. When it is in high demand, its value climbs up and, vice versa, there is a decline in prices with low demand. Thus, cryptocurrency is like any other product: its price is frequently changeable according to the number of buyers. Cryptocurrency exchange platforms that use flexible rates follow the information on the market trades, where rates are always changing, and display real-time figures. When a person tenders some money, a system analyzes the volatile rates and puts forward the most favorable ones. However, the rate can change at any second during the operation – that is why it is called floating. With fiat currencies, the fixed rate refers to the exchange rate set by governments through central banks. The authorities normally have considerable foreign reserves and utilize single currencies or baskets to keep the national currency price on the same level. However, it may be adjusted when necessary: the central bank may intervene in foreign exchange markets for that purpose. Cryptocurrency is not controlled by governments, and thus, the meaning of a fixed rate is slightly different here. In crypto, the rate can be fixed by an exchange service to stay the same for a predetermined amount of time (usually it’s enough time to process your exchange). This serves as protection against market fluctuations during the process. Strengths and Weaknesses of Fixed And Floating Rates With floating rates, you will be offered the best rate on the market. SwapSpace automatically finds and shows you possible options. The fees are usually minor, compared with the fixed ones. With floating fees, market fluctuations may become beneficial or disappointing: if the rate increases while you are exchanging, the final amount of cryptocurrency will be larger. However, the opposite situation is not impossible: some users lose and receive less than expected. As for fixed rates, such risks are gone: if the cryptocurrency you’re selling loses some value during the time the rate is fixed, you’ll still get the other crypto in the amount that you initially agreed to. The stability implies higher fees, though: it might be frustrating with fixed transactions. Note that less risk means less reward, too: if your crypto grew in price in that time — you won’t be able to receive more of the other currency for you amount, as is the case with floating rates. Fixed Exchange Conditions: Digital Currency Platforms Review If you decide on the fixed rate, the next step is to study the exact figures offered by exchange platforms and consider the time the rates are locked for. Don’t get confused about the term “fixed”: the amounts are fixed, indeed, but the time is quite short. Most of SwapSpace integrated services freeze the rates for 20 minutes: SimpleSwap , ChangeNOW , Changelly , and Godex exchange are among them. InstaSwap secures the rates for 50 minutes. Exolix with its 120 minutes (2 hours) is the record-breaker; in comparison, FixedFloat ensures a transaction for ten minutes only. Conclusion Which exchange rate is better? There is no one-size-fits-all solution: the unpredictable nature of the market makes both fixed and float rates preferable under different circumstances. A successful trader must take into account many factors and evaluate all risks; the strength and weaknesses mentioned above will help you make the right choice. As you might have seen, SwapSpace provides offers from the cryptocurrency exchanges with both fixed and floating rates (you can see which one is offered under "Type" in our list) — so whatever you decide, we're right here for you!
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How to Start Trading Cryptocurrency on Exchanges: Basic Crypto Trading Guide

How to Start Trading Cryptocurrency on Exchanges: Basic Crypto Trading Guide

June Katz 3 min read
To understand the cryptocurrency industry, you should know what crypto exchange is. They play a dominant role in the industry as they are the place where one currency is exchanged for another. Millions of users across the globe exchange cryptocurrency on a daily basis for other people’s currencies. Crypto exchanges are the places that facilitate these exchanges. You deposit your funds on their platform and search for the available trading pairs that go with your deposited crypto. If you choose to buy Bitcoin , you’re lucky. There are hundreds of different Bitcoin trading pairs on every single exchange. The less popular your token is, the fewer trading pairs there are available. These days, the most popular exchanges are Binance , Okex , and Bitfinex with smaller exchanges like KuCoin starting to rise. To get started on an exchange, you usually have to complete a certain process of registration. Some exchanges require nothing more than an email address and a password, where others require you to complete the KYC/AML (this stands for Know Your Customer/Anti Money Laundering procedures). You have to submit your personal documents to verify your identity before being able to use the cryptocurrency exchange. After completion of the process, all that’s left is depositing funds, and you can start trading cryptocurrency. And that’s where it gets tricky. With thousands of options, how do you know which cryptocurrency to buy? Experienced traders base their decision on two factors: Technical analysis Fundamental analysis These are both two complex manners of analyzing a project. The technical part is easily explained as pulling up the graph with historical data of the cryptocurrency price associated with the project and performing analysis on this. With the help of indicators like the RSI, Fibonacci, or specific patterns in the candlesticks you can spot what the price trend is. Are we in a bullish trend, so we’re going up, or are we in a bearish trend, we are going down. The fundamental part goes down to analyzing the project in-depth based on the company’s core. How experienced is the team, is the company profitable, what does the roadmap look like, and many other factors you can judge a company on. All of these factors together make up for the decision traders make. What are the drawbacks of using a cryptocurrency exchange? You might wonder, why wouldn’t I use an exchange for cryptocurrency trading? It seems like the perfect place to go whenever I want to exchange my currencies. In one way you’re right, but there are dangers. The biggest danger is the fact that exchanges are mostly custodial. Once you deposit your funds, they own your funds and not you. In case of a security breach, a hacker can get a hold of your precious funds. In the past few years, hackers managed to hack billions of dollars worth of cryptocurrencies from the most popular exchanges. Always remember: not your keys, not your coins.As an alternative to these centralized exchanges, you can use instant non-custodial services like SwapSpace. There, you can exchange cryptocurrency instantly for hundreds of other coins without the coins ever leaving your personal crypto wallet . You hold complete control of your funds at all times. Plus, you don’t even have to create an account. We keep it as simple as it gets. You want to exchange your funds, not handle all the documentation and volatile markets? We’ll do that for you!
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