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Cryptocurrency and the Stock Market: Pros/Cons and What are the Differences Between Them

Cryptocurrency and the Stock Market: Pros/Cons and What are the Differences Between Them

John Martin 10 min read
Crypto assets can utilize all investment strategies in the stock market, from dividends to balancing assets between growth and value stocks and IPO analogs:ryptocurrency trading and trading in stock and financial markets at first glance may seem identical. But there are differences in these industries that cannot be ignored since they make their adjustments and can affect the success of trading. In this text, we will try to understand these differences and compare the cryptocurrency and stock markets. With the advent of Bitcoin in 2009, the world first met with digital currency and blockchain technology. Initially, large investors considered cryptocurrencies just a fad. Since then, a lot of time has passed and cryptocurrency markets have grown like yeast. However, this revolutionary technology was not without drama. While some experts expect the cryptocurrency market to be a useful addition to traditional financial markets, others fear that cryptocurrencies may collapse and pull the rest of the market down. One way or another, the impact of digital currencies on financial markets is undeniable. The main purpose of cryptocurrency trading is similar to the purpose of trading traditional stocks: both are used for earnings. Therefore, more and more investors are adding cryptocurrencies to their portfolios. According to a CNBC study, currently, 1 in 10 Americans invests in cryptocurrency. With digital assets, investing becomes easier than ever. High volatility creates greater income potential. And if you add to this the possibility of round-the-clock trading, a high credit shoulder, low fees , and thresholds for transactions, then it will soon become clear why so many novice investors and experienced exchange traders are starting to switch to cryptocurrency. In this article, we will analyze the similarities and differences, as well as the pros and cons of trading in cryptocurrencies and stocks. Is the Purchase of Cryptocurrency Similar to the Purchase of Shares? Yes. After all, buyers exchange funds with sellers of digital assets, and the price of these assets is determined by demand and supply. Transactions are carried out online, and both types of these investments entail certain risks. Cryptocurrencies and stocks behave similarly. If you traded on the stock market or forex, then you will have absolutely no problems with the interface of any cryptocurrency exchange. But it is worth noting, although the fundamental analysis (fundamental analysis is the approach used by investors to determine the internal value of a cryptocurrency...) of a cryptocurrency or token is slightly different from the analysis of shares, the basic trading mechanism, and general technical analytics are almost identical. For example, similar types of orders are available in both markets. Market orders are either bought or sold at the current market price. Limit orders have a set price at which the trader wants to buy or sell the asset. A stop-loss order works on the same principle as a market order: it is carried out only after reaching a certain value of the price. Moreover, intraday stock trading is very similar to spot cryptocurrency trading. In intra-day trading on the stock market, the trader speculates on the securities exchange rate for one trading day. The same short-term trading strategies apply to cryptocurrencies, with the only difference being that cryptocurrency markets never close. Cryptocurrencies apply such day trading strategies as swing trading, range trading, scalping, and arbitration transactions. The cryptocurrency market is characterized by volatility and deep liquidity, but these are the most important conditions for profitable intraday transactions. Main Differences Between Cryptocurrencies and Stocks The growth of the crypto portfolio by more than 1000% in a matter of weeks is not usual in the crypto market, but still, this happens. The ability to generate significant profits in a short time and a low barrier to entry attract more and more investors. The threshold for entering the cryptocurrency market is quite low because you can trade them in tenths and hundredths. However, the higher the potential for substantial earnings, the higher the risk. Cryptocurrency prices (to put it mildly) are not stable, many experts consider cryptocurrency trading a gamble rather than a real investment. Stock markets, by the way, are also volatile, although not so significant. The main differences between cryptocurrencies and stocks are best noticed when considering the following characteristics. Liquidity Liquidity reflects the ability to quickly and freely buy or sell an asset on the market. Crypto markets are inferior to stock markets in this indicator, since stock markets have higher trading volumes, and, as a result, higher liquidity. In the crypto market, there are significantly fewer active traders, respectively, and liquidity is less. But cryptocurrency is different. Bitcoin, for example, is the most liquid digital currency, it is traded by most traders. The low market capitalization of coins, tokens , and small crypto exchanges often creates liquidity problems and makes these assets unfavorable for investment. But when trading shares, similar problems arise. For example, when investing in OTC small stocks or working with brokerage companies with micro capitalization. Possession Buying stock on the stock market makes the investor a shareholder and awards him a share in the company. The shareholder has the right to various privileges, such as capital gains or losses, dividends on profits, as well as the right to vote in solving various issues of the company. However, if the purchase passes through a brokerage company, then technically this means that the broker owns the shares and not the real buyer. Very few investors own shares on their behalf. If you buy cryptocurrency, then you become the sole owner of the purchased coin or token. Usually, cryptocurrencies are traded and stored on exchanges. However, cryptocurrency can also be transferred to a separate electronic device (cold storage), which, as a rule, is safer than an online wallet . And if the secret keys to your wallet are kept safe, then you can not worry about theft . Stock Markets Fluctuate Only During the Trading Day Cryptocurrency markets, in turn, never close and are influenced by other digital assets, events in the crypto space, and changes in world stock markets. Because of this wide range of variables that affect the market around the clock, cryptocurrencies are more volatile compared to stocks. High volatility means less price stability, which can stop corporate investors from investing in cryptocurrencies. It also means that traders have more opportunities to enter and exit trades and make high profits. Non-Stop Trading The work of cryptocurrency exchanges without breaks and weekends gives wide freedom to the trader. If a trader is profiting from short-term speculation, he can plan his time regardless of location, time zone, and schedule, and at any time connect to the market to find interesting transactions. At the same time, it is important to understand what time the bulk of crypto traders of a particular region wakes up and take into account that with the arrival of a large number of new players from a certain region, the price can sharply move in one direction or another. At the same time, the availability of the market 24 hours a day does not indicate that it is necessary to monitor cryptocurrency quotes around the clock High Volatility With the appearance of cryptocurrencies, for the first time in human history, private investors had the opportunity earlier than institutional investors to gain access to a new promising class of assets. Cryptocurrencies are the first market where there is practically no institutional capital, and this, in turn, generates volatility. Volatility creates several factors: private investors have a higher rate of return on capital, the timing of capital placement is shorter, and the competence of participants is lower. Free Cryptocurrency Market Stock markets are regulated by law, and margin requirements are quite strict. Trading derivatives in the cryptocurrency market is much more affordable than margin trading in the stock market. On the leading derivatives exchange, the minimum deposit is only one US dollar. In the stock markets and the memory, they would not hear about such figures. The size of the credit shoulder on leading exchanges of digital assets varies from 2 × up to 100 × (or even more). Pricing In digital assets, the price is formed according to the classic model of the balance of supply and demand, since the amount of a particular currency is limited and, by regulating the number of those coins in circulation, it is possible to form a price. The price in traditional markets consists of many factors: forecasts of analytical agencies, financial indicators of companies, ratings, government regulation, news background, and other dependencies. Crypto exchanges are often accused of inflating volumes to get a higher rating and attract more traders. So far, there are parallel ratings of exchanges and trade volumes showing very different results, but soon indexes will begin to form the current leaders of the traditional market, and they can be more trusted. Protection and Insurance Due to low volatility, investment portfolio insurance is practiced in traditional markets. This financial instrument benefits both insurers and investors, as it helps protect investments in force majeure. This is not practiced in cryptocurrency markets, since movements can be so strong that insurers simply do not have enough funds to cover losses if chaos begins in the market. The insurance market in the field of digital currencies is just beginning to form, and derivatives are already appearing, such as options for Bitcoin and Ethereum . If we talk about the DeFi strategy, then insurance projects appear that take on the function of an insurance agent, that is, they will reimburse funds in the event of unplanned losses, such as protocol hacks, and loss of assets by a smart contract that invests them in the interests of the user. Diversification The goal of diversification is to hold assets that manifest themselves differently in different markets. Stocks have fewer options for diversification, because all stock markets, as a rule, are influenced by the global economy. Stocks and bonds are affected by inflation and monetary and economic policies. The low dependence of Bitcoin and Ethereum on securities and stock market assets makes investing in cryptocurrency an attractive portfolio diversification strategy. Cryptocurrency prices largely depend on the prices of the largest coins, for example, BTC and ETH . Stocks and bonds depend on a variety of economic factors, individual indicators of companies and sectors, as well as on demand and supply within the corresponding indices, industries, and services. Cryptocurrencies or Stocks: What is Better for Short-Term Investments? Cryptocurrency is a promising short-term investment with the potential for both rapid high profits and equally rapid losses. The average yield on the stock market is about 10% per year, but the yield on Bitcoin, which became the most profitable asset of the decade, is 230%. Keep in mind that digital assets can grow greatly in a few hours or collapse in a matter of minutes, as happens when executing the "pump and reset" scheme. Not all transactions bring stable and guaranteed profit. However, the volatile state of cryptocurrency markets makes them an ideal tool for traders who want to make quick money. Cryptocurrencies or Stocks: What is Best for Long-Term Investments? The stability of stock markets attracts many long-term investors. To illustrate traditional market timeframes, the S&P 500 has been watching the performance of the five hundred largest US companies for 46 years, 10 of which were unprofitable according to the index . However, in the long run, portfolios still grew. In addition to the constant risk associated with high volatility, crypto markets also face the influence of authorities, slow implementation in the rest of the world, and cybersecurity threats. Despite these risks, the cryptocurrency market can become a useful tool if you study how it works and act carefully. Regardless of whether you invest in cryptocurrency or stocks, the right way is to play for the long term. If you are not an intraday trader, then it is better to avoid speculation on short-term volatility. In Conclusion When choosing an asset for trading, it is worth building on your experience, trading strategy, and the amount you are going to invest. Stocks are better suited for those looking for predictable, limited investment growth in the long run in the face of low volatility. Cryptocurrencies are better suited for those who want to diversify their portfolio and insure it against inflation and factors that negatively affect financial markets.
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Large Public Companies Investing in Bitcoin and Other Crypto-Assets

Large Public Companies Investing in Bitcoin and Other Crypto-Assets

John Martin 9 min read
At the end of September 2022, Bitcoin began to grow again. In total, since the beginning of the year, the cryptocurrency market has grown by 272%. Now it has a record capitalization of $2.84 trillion. Despite such significant successes in this market, many investors are afraid to enter it directly: Bitcoin is too volatile. A couple of years ago, companies did not think about buying cryptocurrencies — especially large investors and corporations. Someone was afraid to invest because of the unstable exchange rate. Others simply were not sure that the crypto market was ready. But recently there have been important changes. Bitcoin increased market capitalization and received acceptance at the level of many states and businesses. Now it is called digital gold. By the way, it recaptures the market from precious metals: companies come to understand that the BTC gives greater protection against inflation compared to gold. Who's buying Bitcoin right now? In addition to private investors, large firms came here — some of them are traded on the exchange or manage hedge funds. However, if you still want to profit from the explosive growth of cryptocurrencies — there are opportunities for this. We have compiled a list of companies that are directly or indirectly associated with the cryptocurrency market and will tell how cryptocurrencies helped these companies increase their income and bypass competitors. Since the beginning of this year, forty of the largest corporations in the world have already invested $6 billion in blockchain companies. At the same time, the most active investor was the parent structure of Google — Alphabet, which invested $1.5 billion in such projects, taking part in four rounds of financing at once. What is the reason for such a high interest in crypto projects among large investors? According to Blockdata research, Alphabet has invested in several companies at once since the beginning of the year: Fireblocks, Flow Dapper Labs, Voltage, and Digital Currency Group. In second place among the giants of investment was BlackRock — it invested $1.2 billion in blockchain companies. And in third place was the American investment bank Morgan Stanley with an amount of $1.1 billion. Samsung also actively invested in crypto projects: almost $1 billion immediately in 13 companies. NFT Projects As the Blockdata research results showed, projects focused on working with non-replaceable tokens (NFT) were in the greatest demand among investors. Of the total number of projects that attracted large investors, they accounted for almost a third of all funds provided. Almost all large technology companies, one at a time, have already declared that they are beginning to develop their own metaverse companies, invest in them, or create software or hardware for them. Investors are analyzing what should be invested into now, and which areas will still wait. And even the latest major mergers and acquisitions did not circumvent this topic: the beginning of 2022 was marked by the purchase by Microsoft of Activision Blizzard, one of the largest and oldest computer game developers. The key moment in the history of the metaverse as a full-fledged investment and business idea can be considered the high-profile renaming by Mark Zuckerberg of his company Facebook to Meta Platforms, which occurred in October 2021. It was then that the general public got acquainted with the term "metaverse." Now the online game in virtual reality Horizon Worlds from Meta is available to users in the USA and Canada. Among the most popular projects for investing in NFT, there were startups that are engaged in the development of gaming applications, as well as services for storing cryptocurrencies and financial market infrastructure. What is the reason for such a high interest of large investors in crypto projects? MicroStrategy: The Path from Total Criticism to Trust MicroStrategy became the first public company to risk investing in Bitcoin. They transferred more than $5.8 billion of their capital to digital gold. The company owns a total of 124,391 BTC — which is about 0.7% of the world's bitcoin reserves. Interestingly, the company's CEO Michael Saylor was once a big opponent of digital currencies . Saylor believes that cryptocurrencies are important for diversifying the capital of any large company. Now he is a member of the Bitcoin Mining Council, a group that is engaged in improving environmental friendliness in the extraction of the first cryptocurrency. Against the background of the course correction, MicroStrategy continues to actively purchase bitcoins. Sailor explains that his company's strategy is a long-term investment, so they don't care about time fluctuations. Tesla: Condemns Bitcoins, but Still Buys Tesla's decision to buy bitcoins caused shock and attracted great attention to cryptocurrency. In addition, such ideas were accompanied by contradictory tweets from Elon Musk . Now the Tesla accounts hold 42,902 BTC, which is $2.04 billion in total. This is the second most profitable investment in Bitcoin from a public company. Last year, Tesla sold 10% of its crypto assets. The reason, according to Musk, is simple — he wanted to check the liquidity of Bitcoin as an alternative to cash. At one time, Tesla accepted payments in BTC. But later they abandoned this idea, allegedly because of the impact of mining on the environment. Nevertheless, Musk will not refuse his Bitcoin reserves. In an interview, the billionaire called cryptocurrencies our financial future. He believes that the BTC is ideal for long-term investments. But at the same time, dogecoin is preferable for daily payments. Musk recently added this meme currency to pay at the Tesla store. Galaxy Digital: Million Dollar Confidence Canadian Galaxy Digital Holdings invests in crypto and blockchain companies. It recently bought the BitGo brand, which develops blockchain solutions for storing digital assets. Galaxy shares have grown by 798.92% since September 2020, not least due to the growth of the cryptocurrency exchange rate. Galaxy Digital Holdings is one of the largest players in the institutional investment market. It is headed by charismatic CEO Michael Novogratz. He does not stop defending digital assets — he advertises them in interviews and numerous Twitter battles. The businessman believes that investments in Bitcoin are universal — they will suit both individuals and businesses. By the way, recently Novograts offered a bet to the most ardent Bitcoin opponent Pitter Schiff. The businessman puts $1 million on the fact that by the end of the year BTC will cost more than $35 000. And now a little about the company itself. Galaxy Digital stores 16,400 BTC in its accounts. Their total value now is a little more than $779 million. Since the first purchases, the price of BTC has increased markedly, thanks to this, Galaxy Digital has become one of the leaders in growth among public companies. Now the brand offers its customers several crypto funds, and Bitcoin is not the only interest of the company. They own the Ethereum Fund and the DeFi Index Fund. In addition, last year they filed with the SEC to open the first spot ETF in bitcoins. But the regulator has not yet approved these documents. Voyager Digital: Canadian Success Story and Fears Voyager Digital is a brokerage firm that has been operating since 1993. It has a subsidiary called Voyager Digital Holdings, which collaborates with cryptocurrency brokers. The company offers more than 60 digital assets and has opened branches around the world. The company owns 12,260 BTC worth $585 million. Thanks to the crypto-brokerage business in May 2021, they increased their quarterly income 16 times compared to the previous period. True, recently Voyager Digital has changed its tone. In their latest report to the tax service, they expressed fear about the instability of the BTC course. The company expects that "a significant drop in the price of Bitcoin will harm the results of Voyager Digital." However, they are still in fourth place in terms of capital in the BTC and do not plan to sell their crypto assets. Block: Bitcoin as Part of the Philosophy of Business and Life Like Tesla, Block (formerly Square) is one of the first crypto institutional investors. In October 2020, they invested $50 million in cryptocurrency. And a month later — another $170 million. Since then, it has become clear that Chief Executive Officer Jack Dorsey has become a loyal fan of the BTC, he even has his Bitcoin. Now Block regularly buys BTC and makes them part of its business model. Their treasury has 8,207 coins worth $381 million. At the same time, they spent $220 million on purchases. So thanks to the strengthening of the ROI rate of such investments is 1.7. Last year, Jack Dorsey resigned as CEO of Twitter to fully devote time to his payment company. So we will expect even more opportunities from the Cash App application. By the way, a new option has recently appeared in Cash App — a user can give shares or bitcoins to a loved one, and at the same time, the recipient does not have to have a crypto wallet . And the minimum gift amount is only $1. Block has a lot of plans for the future. They are preparing to release a hardware wallet, their DeFi platform, and even mining installations. The company mustn't think only about its income. They founded the Bitcoin Endowment Foundation, which trusts projects from the field of crypto education. Block advocates for the mining industry, advises companies, and helps them with technical documentation. Fintech Companies Let's start with the obvious. Cryptocurrency was created for blockchain transactions. By adding shares of fintech companies that conduct such transactions to your portfolio, you can make good money on cryptocurrency without buying it. The ranks of such companies are in a hurry to replenish the giants. For example, the veteran of digital payments PayPal announced in October 2020 that it was introducing payment using digital assets. The same can be said about the classic payment systems Visa and Mastercard. Silvergate Capital is a less obvious company that profits from cryptocurrency transactions. This is a digital intermediary bank between crypto exchanges and institutional investors. Since September 2020, Silvergate stock prices have increased by 1,256%. Note the payment system Mogo, which allows you to pay for purchases and receive loans, as well as trade cryptocurrency. Of the latest company news, sellers began to give bitcoins in the form of an incentive program. At the same time, Mogo quotes increased from September 2020 by 244%. Summary A lot of large public companies trust in cryptocurrencies enough to invest in them. Cryptocurrencies give many options for attachments. You can buy crypto exchange shares and receive income from the exchange, or purchase shares of PayPal or Square. In this case, income is generated from the use of cryptocurrencies as a means of payment. Investors who are important for reliability can buy shares of miners or equipment manufacturers. And those who like to take risks may be interested in the shares of companies investing in various crypto assets and technologies.
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Why Is Bitcoin Falling?

Why Is Bitcoin Falling?

John Martin 8 min read
The cost of bitcoin has been declining since the beginning of this year. The coin reached a historic high of $69 thousand in November 2021. By mid-July, 2022, it was trading at $20.77 thousand. August, as the history of observations shows, is traditionally not the best month for Bitcoin. Over the past 11 years, in 6 cases, cryptocurrency has shown negative dynamics over a designated time. How will cryptocurrency behave in the bear market ? What are its prospects for 2022 and will Bitcoin go back up? We analyzed the latest BTC estimates and projections. How Will Halving Affect Bitcoin? It is impossible to draw up a full-fledged forecast of Bitcoin for August 2022 without taking into account the influence of halvings on the behavior of cryptocurrency. Bitcoin halving is when the reward for Bitcoin mining is cut in half. The event is programmed in cryptocurrency code and occurs approximately every 4 years. A decrease in the speed of Bitcoin inflow to the market amid growing interest in cryptocurrencies, as history shows, pushes the BTC rate up. At the same time, during periods when the market is "saturated" with an asset, the so-called crypto-winter comes — a period of a protracted price drop. It can be assumed that August 2022 has been such a period. The last halving in the Bitcoin network was recorded on May 11, 2020. The event halved the BTC mining speed. Against the background of the growing interest of market participants in cryptocurrencies and a decrease in the supply of coins, Bitcoin updated the absolute maximum on November 10, 2021, at an altitude of $68789. To understand how BTC can behave, you need to analyze cryptocurrency movements in the periods after the Halvings on November 28, 2012, and July 9, 2016. Both times the price of the asset decreased significantly in the next few months, gradually returning to its previous values. Thus, Bitcoin's price forecast, taking into account the influence of halving, suggests that cryptocurrency growth in August 2022 is unlikely. World Recession Bitcoin, as well as the entire crypto market and stock markets, is now being pressed by the intensification of manifestations of the global recession. For example, in the UK inflation reached a record 10%, in China, there is a threat of collapse of developers, because of which the risk of default in China becomes more and more distinct, and in Europe inflation updates 40-year highs. At the same time, the European Central Bank cannot raise the key rate due to the threat of default in Spain, Italy, Greece, and France. In the IMF report "Cryptocurrency Relations: The Impact of Cryptocurrencies on Equity Markets" for January 2022, the global regulator emphasized the growing correlation between cryptocurrencies and stock markets in the United States and emerging markets. The report noted that before the pandemic, popular cryptocurrency assets, such as Bitcoin and ether, were poorly correlated with major stock indices, but cryptocurrency prices and US stocks rose sharply after monetary easing by central banks in early 2020. Using daily data on price volatility and yield, the IMF found that since the pandemic began, the impact of Bitcoin price volatility on the S&P 500 and MSCI emerging markets has increased by about 12 – 16%, and from its yield — by about 8 – 10%. Tether's secondary influence on global stock indices also increased by about 4 – 6%. In absolute terms, an IMF analysis shows that the impact of Bitcoin on world stock markets is significant — it accounts for about 14 – 18% of fluctuations in share price volatility and 8 – 10% of fluctuations in share yields. As a result, investors seek to shift to protective assets, abandoning cryptocurrency. The forecasts of many experts say that by the end of this year Bitcoin may fall to 10 – 12 thousand dollars. This is quite real, since the global economy is experiencing a fall, and cryptocurrencies are growing after the stock exchange exclusively on optimism when investors believe in the growth of high-profit assets. Now there are no such expectations. Bitcoin Price Analysis Bitcoin began the year 2021 at $28 994.01. The coin grew over the past year and in November reached a historical high of $69 thousand. After that, the BTC price fell quite quickly and ended the year at about $46.3 thousand. In 2022, the Bitcoin drop continued. It has fallen to almost $33 thousand by January 24. By the end of March, the cryptocurrency managed to recover to the level of $47 thousand, but not for long. In early June, the value of BTC had already fallen to $29 thousand, in mid-June — to $25 thousand, and then fell even lower — on June 18, the coin collapsed to about $17744, after which it recovered to a level slightly above $20 thousand. On July 13, the price of Bitcoin again fell to almost $19 thousand amid poor monthly inflation rates in the United States. According to the cryptocurrency aggregator CoinGecko, over the past year, BTC has lost 36.8% of its price. What Investors Should Pay Attention To What are the main conclusions from this data that can be drawn for investors? Firstly, the change in trends noted by the IMF and Morningstar reflects the frantic pace of development of a rather young cryptocurrency market. As cryptocurrencies become a class of assets with growing adaptation around the world, their correlation with other asset classes may change over time during market cycles. For investors who want to diversify their portfolio, it is important to look at asset correlations, but the full picture cannot be overlooked. In particular, we are talking about their investment goals and the time horizon which determine the level of risk permissible, and, accordingly, the structure of portfolio assets. Investors should analyze the markets themselves and be aware of key events in the cryptocurrency market, instead of simply following the latest trends. This will help make informed and informed decisions consistent with risk tolerance and goals. What Else to Pay Attention to: International Conflicts And State Regulators In 2022, the attention of investors is riveted on the situation in the geopolitical arena. The conflict between the Russian Federation and Ukraine, also lead to a crash of Bitcoin and the whole crypto market. Increasing tension in the geopolitical arena may negatively affect the position of BTC. Escalating conflicts between China and Taiwan, as well as Kosovo and Serbia, can make the situation worse. Another topic for discussion in the crypto community was the pressure from financial regulators. The authorities of many countries, including the United States, the largest center of the crypto industry, began to fight inflation. To this end, America, among other things, has abandoned quantitative easing policies. It is noteworthy that against the backdrop of the crisis, many crypto projects faced a liquidity crisis. In 2022, the US Fed headed for an increase in the base rate. The changes are designed to overcome inflation. Many participants in the crypto community believe that an increase in the Fed's base rate will lead to an update of the lows in the digital asset market. Some of the experts interviewed by the editors of the BeInCrypto see prospects for reducing Bitcoin below $10 thousand. Bitcoin Price Forecasts for 2022 As of July 15, 2022, the short-term forecast for BTC from CoinCodex was bearish. The service expected a drop in the price of 6.56% to $19436 — by July 20. 16 technical indicators gave bearish signals and 14 — bullish ones. The resource called the current period is not the best time to buy bitcoin. Wallet Investor's forecast for 2022 was quite encouraging. According to the website, the average BTC price can recover to $32 909 by the end of December. In mid-July 2023, the average value of the coin may reach $37132.3, predicts Wallet Investor. In July 2025, it will rise to $68293, and in 2027 — to a new maximum of $97875.8. The long-term outlook from DigitalCoinPrice also looks quite optimistic. The service expects an average BTC price in 2022 at $28923.47 and in 2025 — at $47467.27. By 2030, the resource suggests, the average price of Bitcoin will be $99 044.76. Let Us Summarize The history of the Bitcoin movement shows that August is not the best month for cryptocurrency. Analysis of halving-adjusted BTC behavior also indicates that the likelihood of coin growth this month is extremely low. In addition, the crypto market is under the pressure of conflicts in the geopolitical arena. The situation may be aggravated by the consequences of the struggle of regulators of countries with inflation. Therefore, the forecast of Bitcoin for August 2022 is negative. It can be assumed that the cryptocurrency will spend a month on the sidewalk. At the same time, the risks of updating the lows are not excluded. It is important to remember that cryptocurrency markets remain extremely volatile, which makes it difficult to predict the price of coins even in the range of several hours, not to mention long-term forecasts. Therefore, analysts can and often are mistaken in their predictions. If you plan to invest in Bitcoin or other cryptocurrencies, we strongly recommend always conducting your own research.
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Blockchain Companies and Stocks: Traditional Finance in the Crypto World

Blockchain Companies and Stocks: Traditional Finance in the Crypto World

Ruth Kise 5 min read
2022 is in full swing, and it is already clear to everyone that the cryptocurrency world is alive, will live, and, in general, is still developing. Time has shown that the crypt market is growing, pushing the idea as well as attracting large funds. But how to put your own skin into the game, and where to start to earn money — is still difficult to figure out for many. Actually, there are no clear answers on where you can earn and how to advance (and of course, we don’t give financial or investment advice!), but we tried to convey some information in a concentrated and understandable way. Direct Investing in Cryptocurrency One of the most common and understandable strategies for interacting with cryptocurrency includes the purchase and storage of spot cryptocurrency assets. To do this, users can use centralized or decentralized exchanges , but in any case, you will have to go through the exchange of crypto for fiat money and back. Therefore, it is important to monitor the current regulation. However, if you do not like buying coins, but the crypto world still attracts you, then there are other ways to join the conversation. Investing in Cryptocurrency Infrastructure Mark Twain said it best: "During the gold rush, it's a good time to be in the pick and shovel business". In this case, indirect and direct investment is similarly possible. Direct investments in infrastructure are mining , investing in the creation of trading platforms (crypto exchanges), as well as services and technologies around them. Such investments should be considered long-term, strategic investments. Investing in publicly traded stocks of the basic technology needed to create a crypto service is also a way to enter the market, especially if you don't want to worry about specific tokens . The Web 3 concept is attracting more and more large investors, so the value of companies whose activities are aimed at developing infrastructure is growing. There are many options for investing here, and you can start with your own vision of the development of the crypto world. For example, if you are a proponent of the idea of crypto flow regulation and believe that the future lies with centralized exchanges, then the assets of Coinbase, the largest cryptocurrency exchange in the United States by trading volume, are traded publicly on the NASDAQ exchange. The platform held an IPO in April 2021 and its COIN shares are openly traded. If you are interested in the blockchain technologies themselves, then the next option is the shares of ConsenSys, Ethereum blockchain software technology company. Let's recall that ConsenSys, which was valued at $3.2 billion in the last round of funding in November, joins a growing list of crypto companies whose estimates have jumped in recent months due to an explosion of interest in Web3. Investing in Companies with Cryptocurrency Assets Alternatively, you can use indirect investment strategies. Since some publicly traded companies have cryptocurrency assets, it is possible to buy publicly traded stocks of these companies, thereby taking advantage of cryptocurrency without necessarily owning it. For example, MicroStrategy is a company engaged in the development of software and mobile applications. In August 2020, MicroStrategy invested $250 million in Bitcoin as a reserve asset. Later, the company made several more additional large purchases of Bitcoin, totaling more than $2 billion. After Bitcoin's price fell to about $20,800 in June 2022, the company said it had not received a margin call and that it had enough capital to withstand further volatility. Also, you can turn your attention to Block (Square Inc until 2021), an American technology company that develops solutions for accepting and processing electronic payments. In October 2020, the company placed about 1% of its total assets ($50 million) in Bitcoin (4,709 bitcoins), citing Bitcoin's "potential to become a more ubiquitous currency in the future" as the main reason. In February 2021, the company acquired another $170 million in Bitcoin (roughly 3,318 bitcoins), bringing Square's total assets to nearly $500 million in BTC (roughly 8,027 BTC in total). On December 1, 2021, Square announced its rebranding: the company was named Block. The new name is associated with the desire to reflect the growth of the company in the field of blockchain technology. Investing in a Cryptocurrency ETF Cryptocurrency ETFs are gradually being implemented, providing ETF shareholders with the possibility of indirect investments in cryptocurrency. For example, ProShares has launched a BITO — a bitcoin ETF that does not directly invest in bitcoin. Instead, it is based on futures contracts tied to the asset. The BITO ETF allows users to invest directly from their brokerage accounts instead of opening a wallet . Copy Trading: Passive Investing Next, we want to mention another way to increase capital — copying. The essence of the method is to copy the transactions of another trader. This means that many small or not very experienced traders willingly invest in new projects supported by the industry's largest and most successful investors. This way you can start trading in stock markets, even without knowledge of how it all works. You can choose a "role model" on a special platform using filters, or seek help from Quantum AI artificial intelligence, which analyzes the market and offers the best deal options. P.S. Goes Without Saying — But Don't Get Scammed Attention! No matter which way of earning money you choose, always double-check the platforms on which you plan to earn extra money. Sites must be reliable and, all about, genuine!
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The Collapse of the Crypto Lending Market: 3AC, Voyager, Celsius

The Collapse of the Crypto Lending Market: 3AC, Voyager, Celsius

John Martin 4 min read
Those people who have been closely following the crypto market for some time regularly see news about the collapse of a coin or token .  After the Terra Luna crash it became clear that many very large projects had big holes in them. While the whole crypto industry was doing well, they could promise their clients super profits and easily attract new capital, but now everything seems to have changed. During the crypto winter, the lending market is going through bad times. Several major players announced bankruptcies and restructurings one after another. Three Arrows Capital Three Arrows Capital is one of the most famous cryptocurrency hedge funds that has been investing in digital assets. Nevertheless, a large-scale drop in cryptocurrency prices dealt the company an irreparable blow — on June 29, 3AC was liquidated. 3AC has invested in various projects in the early stages of financing. Funds were usually collected in USDC / USDT . For their part, 3AC held a commitment of 8% per annum. It seemed to the projects to be a fairly safe action, simply because it is a large fund. But on June 27, Voyager Digital LLC notified 3AC of default after the fund failed to repay loan payments on time. Voyager provided 3AC with loans in the amount of 15.2 thousand BTC and 350 million USD . When it comes to such large funds, many people believe that since they are large and have been in the market for a long time, they are too big to fail. Many people thought that Terra was too good a project to get buried, and they also thought that funds like 3AC kept the situation under control, but they did not always make the right decisions. Following 3AC, the largest American crypto broker Voyager went bankrupt. They provided 3AC with loans in the amount of 15.2 thousand BTC and 350 million USD. A week after the collapse of 3AC, Voyager announced the suspension of trading, deposits, and withdrawals. Celsius Following Voyager and 3AC, on July 15, the Celsius crypto-lending platform declared bankruptcy. The New York company went bankrupt by the US insolvency law. The company's assets and liabilities are ranging from 1 to 10 billion US dollars. If in October 2021, according to CEO Alex Mashinsky, the company had $25 billion in assets under management, then in May, despite the collapse in cryptocurrency prices, there were about $11.8 billion in assets, according to the website, and another $8 billion were customer loans, which made the company is one of the world's largest crypto lenders. As of today, Celsius has $167 million of cash on hand, which, according to its CEO, will provide "sufficient liquidity" to support operations in the restructuring process. However, there is a "hole" in its balance sheet of about $1.2 billion. Some analysts compare the collapse of Celsius with the collapse of Lehman Brothers, only in the field of cryptocurrencies, implying a domino effect that began with the bankruptcy of a large bank on Wall Street, which eventually led to the mortgage debt crisis and the global financial crisis of 2008. Promises of great profitability of Celsius, which the company distributed to attract new customers, largely caused its final collapse. Regardless of whether the collapse of Celsius portends a larger-scale collapse of the entire cryptosystem, or not, the days when clients of such firms received double-digit annual revenues are numbered. But even 3 weeks after Celsius suspended any possibility of withdrawals by customers due to "extreme market conditions" and a few days before it eventually filed for bankruptcy protection, it was still advertising on its website an annual return of almost 19% that was being paid weekly. The company's bankruptcy filing shows that Celsius also has more than 100 thousand creditors. The firm said that most of the account transactions will be suspended until further notice and that there are currently no requests for permission for withdrawals by customers. At the same time, the accrual of remuneration is also suspended during the bankruptcy process, and currently, clients will not receive their remuneration. This means that customers trying to access their cryptocurrencies will not be able to do so yet. It is also unclear whether the bankruptcy procedure will eventually allow customers to recover losses. If there are any payments based on the results of, apparently, a multi-year process, then there is also the question of who will be first in line. Everything is complicated by the fact that in the absence of regulation in the crypto sphere and unlike the traditional banking system, where customer deposits are usually insured, there are simply no formal consumer protection measures to secure users' funds if something goes wrong. But even more important is what is written in the fine print in the terms and conditions of Celsius: the firm warns that in the event of bankruptcy, any permissible digital assets used for earnings or as collateral for loans cannot be returned and that customers will not have any legal remedies or rights in connection with the obligations of Celsius. It looks like an attempt to get absolute immunity from legal offenses if things go badly for the platform. We can say that by promising its customers high profitability, Celsius was able to get only a very small profit margin. As a result, Celsius did not have a buffer for a bad market situation. Possible bankruptcies of large crypto creditors may have a significant impact on crypto industry. If creditors will start going bankrupt, then this clearly does not bode well for investors. Plus, each such scandal is a "red rag" for regulators and leads to a tightening of the laws of different countries in the field of cryptocurrencies.
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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 6 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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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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Bitcoin Futures Trading And ETFs: What's All the Fuss?

Bitcoin Futures Trading And ETFs: What's All the Fuss?

June Katz 5 min read
Despite the governments around the globe’s growing efforts to bring crypto markets under control, many aspects of them still somewhat resemble the Wild West — what with the play-to-earn games boom, NFT speculation, and other features that are often poorly understood by the officials. However, at the same time, there are some tendencies bringing “traditional” legitimacy to some aspects of the vast cryptocurrency market. One of the signs that Bitcoin , specifically, is getting more and more mature as a currency and as a market is the recent appearance of the Bitcoin futures ETFs. Going Legit: What Are Bitcoin Futures First, let’s take a quick look at what the futures themselves are. In short, they are contracts that obligate the parties to sell and buy the specified asset at some fixed time in the future (at the contract expiration date) for a fixed price. The underlying assets for the futures contracts may be stocks, commodities, etc; in 2017, Bitcoin joined the ranks of such assets. Bitcoin futures have been trading on several exchanges since then, some of them institutionally regulated, like Chicago Mercantile Exchange (CME), and some unregulated, like Binance. In general, the purpose of a futures contract may be to hedge against volatility, to speculate on the prices, or to reduce uncertainly while planning future investments (as the price paid at the expiration is known in advance). Some futures markets allow cash delivery instead of physical one, meaning that the parties don’t have to exchange an underlying asset at the end of the contract, operating with its cash equivalents instead (and in the case of the Bitcoin futures, this means fiat currency). Just like another popular cryptocurrency derivative product, perpetual swaps, futures trading is usually leveraged. This means that the buyer doesn’t pay the whole price of the contract upfront but just a part of it (the rest is put up by the broker, hence “leverage”). This allows the trader to get more profits, compared to the initial payment, if the trade goes well, although the risks are higher too (bad trade may put him or her into debt towards the broker by the contract’s close). Bitcoin Futures Trading: Pros And Cons Bitcoin futures, specifically, have several features that fit this particular asset very well. First of all, as futures don’t require access to the underlying asset itself, the investor can gain exposure to it without getting into Bitcoin trading which sometimes deters institutional investors (and even retail investors are sometimes hesitant to create wallets and learn the nuances of trading crypto itself). Secondly, the futures market is regulated — which, again, is more attractive to institutional investors. Also, there are mechanisms akin to stop-loss in place, which allow the investor to cut their losses. There are also some negatives to watch for. Leverage makes the trading riskier: as the wins are amplified, so are the losses Futures are “not the real thing”: the traders don’t own Bitcoin, just the contracts to buy and sell Futures contract’s value is fixed (you can’t buy a partial contract), and it can be pretty steep. For example, the CME Bitcoin futures price is 5 bitcoin for one futures contract (although it’s in the process of launching micro Bitcoin futures, with the price of 1/10 bitcoin). We Must Go Deeper: Why ETFs There has been a big push towards the crypto ETFs, and in October 2021 the news came: SEC has approved Bitcoin ETF, which is the first for this market. ETF is an exchange-traded fund tracking the price of an underlying asset. In the case of the futures-based Bitcoin ETFs, the price getting tracked is not the current, or spot, Bitcoin price, but, as the name implies, the price of the Bitcoin futures available at the moment. The purpose of Bitcoin ETF is ostensibly to offer exposure to this asset to the traditional investors with more trust in the stock market than the crypto one, who nonetheless are looking for the best crypto to invest in now (as seemingly everybody does). Bitcoin ETF Trading: Pros And Cons ETFs issue shares, and as such allow for more granular trades than the futures contracts. Bitcoin (or, for that matter, any crypto) ETFs are traded on a stock exchange, eliminating the need to either learn specifics of the futures trading or, in the case of Bitcoin, learn the ins and outs of the cryptocurrency trading . On the other hand, there are issues with ETFs. Just a few examples are: Futures-based ETF can underperform the underlying asset, both because of the management and other fees taken from the investments and because of the imperfections in the tracking mechanism. ETFs are traded during market hours, not 24/7. ETFs gains are also subject to more taxes than futures. Considerations And Consequences: Bitcoin Futures Trading And Bitcoin ETF News Trading Bitcoin futures themselves, while may be profitable for the experienced investor familiar with this instrument, is not easy to get right (and expensive!) for a novice. Moreover, it can prove either too risky (if it’s happening on an unregulated platform) or hard to get into (on the regulated futures exchanges requiring setting up an account). On the other hand, it’s easier to start trading Bitcoin futures ETFs, which can be as simple as buying some shares through a Fidelity account. While not necessarily offering as much to gain as futures (and still risky), they can mitigate some investors’ concerns. Combined with the above-board structure of the ETFs, this facilitated strong investor interest: just a month after its launch, the pioneering ProShares Bitcoin ETF (ticker BITO) has more than $1.3bn in exposure, with others — Valkyrie and VanEck Bitcoin ETFs — trailing not far behind. Still, this is not all that the brokers and investors wanted. In 2021, the battle with SEC for the spot, not futures-based Bitcoin ETF approval seems all but lost — but there’s no way this is the end. By the looks of it, though, for this kind of SEC Bitcoin ETF approval, BTC undoubtedly will have to come under the regulator’s gaze even more. Conclusion: What Does It All Tell Us About the Bitcoin Future While the Holy Grail for the traditional trader interested in crypto exposure — a spot-based Bitcoin ETF — is not yet here, the current situation is a big step toward Bitcoin’s wider adoption and legitimization. It’s undeniable now that both institutional and retail investors are taking note of Bitcoin’s market power, despite the general public’s history of distrust toward the cryptocurrency crowd. This also might be opening the doors to other cryptocurrency ETFs and futures to follow. While this is exciting for many, there’s also the opposite opinion: bringing Bitcoin into the big leagues defeats its purpose as a decentralized currency. It does seem ironic that the asset whose whole history started with the words “Chancellor on brink of second bailout for banks” is moving full steam into Wall Street markets. But of course, it might be that Bitcoin trading will bring changes there — and not the other way around.
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The Most Interesting NFT Examples: November 2022 Edition
The Most Interesting NFT Examples: November 2022 Edition

The Most Interesting NFT Examples: November 2022 Edition

Ruth Kise 11 min read
The NFT market remains an integral part of the crypto world, and despite some difficulties, it continues to develop and gain the interest of many users. In this article, we will talk about NFT news: today’s market situation, new opportunities, and some fresh NFT examples. Market Decline This year has been a difficult year for the NFT due to the bear market as well as other factors. According to Bloomberg, NFT sales this year have plummeted: in September, these digital assets were sold for $466 million, which is 97% less than the $17 billion that was raised in January. One of the factors in the collapse was the announcement of the bankruptcy of the FTX exchange , which negatively affected the cryptocurrency market in general and the NFT ecosystem in particular. Starting Nov. 7, when FTX customers had withdrawal issues, the NFT market is recording a steady decline in sales volume, market capitalization, daily NFTs traded, number of traders, and many other metrics. A deeper dive into the efficiency of the NFT sector in early November revealed a significant drop in the blue-chip index (Bored Ape Yacht Club, Cool Cats, CryptoPunks, Art Blocks, and CloneX). According to the analytical platform NFTGo, the blue-chip index is calculated by weighing the market capitalization ( ETH / USD ) of the largest NFT collections, which makes it possible to assess their performance. According to NFTGo, since November 7, the total capitalization of the NFT market has fallen by 8%; over the same period, total sales fell by 32%. Only sports fan tokens can boast of outstanding success now, as the trading volumes of those skyrocketed while the market was waiting for the 2022 World Cup. Let It Become Money On November 11, FTX Trading Ltd., Alameda Research, and 130 other affiliated companies began voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code. Along with this, it was announced that Samuel Bankman-Fried was leaving the post of CEO of the platform. After this news, 1.3 thousand tokens with various images of the ex-head of the problematic exchange were put up for sale. In total, the collection contains almost 7 thousand items. More than 2.1 thousand users purchased NFT from the Bankrupt FTX Yacht Club collection dedicated to the collapse of the exchange. The total cost of the sold NFTs is 187 ETH ($233 000), and the minimum price (the price of the cheapest token in this series) reached 0.1 ETH ($125), but by now it has dropped to 0.0092 ETH ($11).  The collection was posted by the creator of the NFTs - S60SSYe - on the evening of November 11. At the same time as the Bankman-Fried series, he also presented 3.8 thousand tokens called Caroline Town by BFTXYC (Bankrupt FTX Yacht Club) with the image of the head of Alameda Research Carolyn Ellison. These NFTs are less popular. Currently, about 700 users own such items, and the total amount of token sales amounted to 6 ETH ($7.5 thousand). Instagram and Facebook Have the Opportunity to Post NFTs Meta has opened up the opportunity for all US users to post digital collectibles, i.e. non fungible tokens or NFTs, on Facebook and Instagram. On Instagram, this feature is also available to users in over a hundred other countries. To work with the option, you need to connect a crypto wallet to your profile on the social network, after which it will be possible to create publications with NFT objects from this wallet. At the same time, the creator of the object and its owner are automatically marked in the publication.  A special section dedicated to digital assets has now appeared in the application settings, and wallets created on five platforms, including Coinbase, MetaMask and Dapper, can be connected to the profile. Theoretically, this operation is available not only in the mobile application, but also in the web interface — but the authors of assets, The Verge, said that the second option is still malfunctioning. Release and Sell NFT on Instagram: Now You Can Meta announced that it has begun testing the mechanisms for releasing and selling NFTs on Instagram. The first access to new features will be given to "a small group of authors in the United States". The set of options for demonstrating NFT objects on the platform has also expanded. Meta has prepared a set of tools for working with NFT: it will allow you to issue tokens on the Polygon blockchain so that you can then sell them either on Instagram or outside the platform. The developers specified that the Solana network was added to the supported Ethereum , Polygon and Flow blockchains to withdraw NFT purchased elsewhere on Instagram. In addition, there was a download of metadata from the OpenSea marketplace, as it was done on Twitter. Last year, Instagram chief Adam Mosseri said the platform was no longer viewed as a photo-sharing app. Now it is an entertainment venue. Therefore, authors should be able to make money either from advertising or from selling NFTs and gifts from the audience. Buy NFT From the AppStore Recently, Apple Inc. updated the rules for non-replaceable tokens (NFTs) in the App Store. Developers can now sell NFTs hosted at the App Store, but only through the internal payment system. That means content creators will be required to pay Apple a 30% fee on sales. Apple is interested in ensuring that users do not bypass the commission for buying NFTs using cryptocurrency. Therefore, the company introduced even more restrictions. Thus, the new rules prohibit the use of cryptocurrency, crypto wallets , and QR codes to unlock functions in the application. In addition, development companies must have a license to work in the country where the application is sold. And despite criticism of the high commissions, the company's management believes that the possibility of buying NFT from the AppStore for fiat will attract people who consider cryptocurrencies difficult to the market. OpenSea New Tools  Marketplace OpenSea has launched a new tool for royalty fees. So far, it can only be applied to new collections of non-fungible tokens. “There’s been a lot of discussion over the past few months about business models for NFT creators & whether creator fees (“royalties”) are viable. Given our role in the ecosystem, we want to take a thoughtful, principled approach to this topic & to lead w/ solutions”. OpenSea (@opensea) The team reserves the right to collect royalties for authors. From November 8, the platform will begin to charge commissions only from those new collections that use the corresponding tool and run additional options and improvements for fees in new collections. The marketplace team said that they are already thinking about alternatives in order to help the authors of existing collections navigate the changes in the NFT market. For the latter, they promised not to introduce any changes until at least December 8.  Also, the largest trading OpenSea marketplace is preparing a stolen token detection and sales block system on the platform. The developers have prepared a system that will automatically track transactions with stolen tokens and block such sales on the platform. Now the system is in the stage of limited testing. To track suspicious NFTs the system is going to use "many sources of transaction data." In addition, the system itself will check the seller's wallet for suspicious activity, for example, many NFT movements. An important innovation is checking links in ads for possible fraud. Scammers often used the OpenSea platform itself for fraud posting phishing links in ads.The new system will check both the NFT description and the URL link in the description. The developers promise to limit the clicks on suspicious links automatically. Starbucks Unveils NFT-Based Loyalty Program Starbucks has officially unveiled a new NFT-based loyalty program in the virtual world. The Starbucks Odyssey project is the coffee chain's first experience of building a virtual community using web3 technology. The new format combines the classic Starbucks Rewards loyalty program and the NFT platform, where guests can earn digital assets, which can then pay for exclusive services. Starbucks Rewards members will be able to use the services of Starbucks Odyssey through existing accounts, there is no need to re-register. Once in the new virtual space, they will be able to participate in various special projects, which Starbucks called "travel": for example, playing interactive games or taking part in surveys aimed at deepening their knowledge of the Starbucks brand or the coffee business as a whole. As these "travels" are completed, participants will be able to purchase some items from NFT collections. True, here Starbucks deliberately leaves the technical slang and calls these collectibles in the NFT format "road stamps." Despite being hosted on the Polygon blockchain, these NFTs will be purchased with a credit or debit card, no crypto wallet is required. The company believes this will make it easier for consumers to interact with web3 by lowering the entry barrier. It will be possible to swap "stamps" for a virtual class for preparing espresso martini, or access to indoor events at Starbucks Reserve Roasteries, or even a trip to Starbucks Hacienda Alsacia coffee farm in Costa Rica. Items in the NFT collection can be earned, exchanged in the community, or simply bought. Square Enix Fans’ Disappointment Square Enix has officially announced the NFT game Symbiogenesis. It will be released in the spring of 2023 along with the free browser service of the same name. The publisher registered the Symbiogenesis trademark in October. Then the players thought that under this brand a continuation of the sensational Parasite Eve which came out in the late 90s or something related to this series would be released. They came to this conclusion because the word symbiogenesis means the process of combining two separate organisms into one. It is this process that underlies the Parasite Eve plot . Symbiogenesis is a brand-new entertainment project that will take place in an autonomous world, where the symbiosis of many characters can be assembled in a digital art format. In Symbiogenesis, all user-generated content can be used as a profile avatar on social media and as a playable character in a story that takes place in the digital world. The authors promise a lot of plot in the NFT game. Something New From The Sims Creators  The creator of the iconic The Sims and the city-planning simulator SimCity Will Wright has announced his new game called VoxVerse. This is a virtual sandbox consisting of huge cubes in which players can extract resources, own land, and build various structures. Unfortunately for many players, VoxVerse is largely built on NFT technology. Players will be able to trade characters from The Walking Dead and DreamWorks' cartoon Trolls. According to Wright, blockchain technology will help players make "secure transactions." At the same time, the cult developer himself expects that three types of users will be formed around the game: some will simply play, the second will be slightly involved in the project economy, and others will enter VoxVerse exclusively for the purchase and sale of items. However, Will Wright is much more interested in "a million ordinary players than in 10 thousand rich whales" that will bring him money. More Life in the Metaverse There is not yet a single metaverse, and its first versions often cause mixed feelings due to the feeling of artificiality. To "revive" the virtual space, startups offer to add virtual animals to them. The general idea is not new, but the new features imply that the pet will not be limited to specific hardware. Now in the early days of Web3, a new wave of start-ups is attracting investment to bring our furry friends to the metaverse. One of the striking projects is Tiny Rebel Games' Petaverse Network creates virtual cats in an NFT drop format that is promised to be used for decades. To do this, they are trying to ensure that their metapets can be recreated by different development teams working on different platforms, regardless of how the technology changes. Another project, Digital Dogs, is going to "tag" the metaverse and is developing cross-platform AI puppies for virtual worlds, digital games, and social platforms. According to co-founder and CEO Itay Hasid, these dogs are not intended to replace a furry friend. These are rather companions for users of the metaverse, who may become an occasion to start a conversation, which is not enough, in his opinion. ECO -Friendly NFT If you love nature and are worried about the safety of animal species and ancient traditions, now you have the opportunity to curate your own deer. The deer NFT collection containing eight tokens has appeared on the market. The Digital Reindeer Herder project was developed in Yakutia. Also, the republic began to issue futures of supplying deer antlers in a certain number of kilograms. The money from the sale, in particular, will go to the development of reindeer husbandry in Yakutia. "Futures will increase the number of animals and commercialize the antlers market. A similar contract can be used by people who want to help the ecology of the Arctic and contribute to the development of the North, " said the press service of the republic. The Bottom Line NFTs have been more than just pictures with painted stones from the Internet for a long time, sold for a lot of money. Attractive assets with their philosophy are rapidly becoming an integral part of modern culture, opening up new opportunities for monetization of their resources for artists and enthusiasts of the idea of an attractive Metaverse. Large companies one way or another enter the market, wanting to maintain their significance and relevance. Using technology, opening their own marketplaces, or releasing their own collections, large players not only increase their funds but also popularize NFT for the masses. Booms and busts inextricably accompany the development of the young market, presenting opportunities to make good money for experienced participants, and a nice chance to successfully enter the market for beginners. And we at SwapSpace are preparing something in this space ourselves. Stay tuned!
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What Happened to FTX: A Brief Overview
What Happened to FTX: A Brief Overview

What Happened to FTX: A Brief Overview

John Martin 6 min read
Until recently, it seemed that FTX was doing well: FTX founder, Sam Bankman-Fried, one of the most authoritative persons in the crypto-world, raised $400 million from Softbank and others in January, receiving an estimated $32 billion valuation, and last month spoke about the project’s ambitious acquisition plans. However, now FTX is in distress, customers are massively withdrawing funds, and Binance, which volunteered to help the company, refused to buy it. Let's figure out how the crisis unfolded. A Brief Chronology of the Events That Led to the Collapse of the Crypto Exchange November 2017 - Foundation of Alameda Research Alameda was founded in November 2017 by Sam Bankman-Fried (also known as SBF). Alameda and SBF gained fame through arbitration trade on the so-called "Kimchi Premium," which refers to abnormally high bitcoin prices in some Asian countries. Subsequently, Alameda became one of the most influential venture capital companies, trading firms, and market makers in the field of cryptocurrencies. May 2019 - Foundation of the FTX Crypto Exchange FTX was founded by SBF in May 2019 as a centralized cryptocurrency exchange specializing in derivatives and products with credit leverage. December 2019 - Binance Announcement At the end of 2019, the Binance cryptocurrency exchange announced strategic investments in FTX. The investment was approved by SBF, which said it "will help accelerate FTX growth with support and strategic advice from Binance while maintaining independent FTX operations." 2021 - Binance Sells FTX Stocks in Exchange for FTX Tokens and Dollars In 2021, Binance sold its stake in FTX in exchange for $2.1 billion in FTT and dollars. 2022 - FTX Gets in Trouble On November 8, the FTX exchange suddenly suspended the withdrawal of customer funds (for many crypto projects such actions were a precursor to the approach of the disaster), and CEO Binance Changpeng Zhao, known under the pseudonym CZ, announced on Twitter that FTX had turned to his company "for help" and they managed to come to an agreement that would save the crypto exchange. Bankman-Fried published the thread, saying that the customers' money is now safe and withdrawals will be made on time. "CZ has done and will continue to do incredible work to create a global cryptographic ecosystem and a freer economic world," he wrote. This year many events undermined confidence in crypto companies. After the collapse of the Three Arrows Capital hedge fund, the Celsius platform, and the Terra-Luna stablecoin , another loud failure was the last thing the industry needed. It seemed that the FTX barely managed to evade its crisis. But soon after Binance posted a tweet about canceling the deal, citing the results of corporate due diligence and news that FTX mismanaged customers' funds. The Stock Sold by Binance FTX's problems began in July 2021, when Binance, one of its first investors, sold its stake in a competing business for $2.1 billion in FTT - tokens issued by FTX. At that time, this step seemed logical: Bankman-Fried and Zhao had different views on the approach to regulating cryptocurrencies, which led to a split. FTX's problems surfaced only on November 2, 2022, when a report from CoinDesk showed that billions of dollars worth of FTT tokens were on the balance sheet of Alameda Research (a subsidiary of FTX). This raised questions about how much FTX and Alameda are dependent on FTT, which cannot be easily converted into cash. In addition, the specifics of the relationship between Alameda and FTX remained unclear for a long time. In response, CZ published a sensational message on Twitter: Binance will sell all its assets in FTT. According to him, the intention was to conduct the sale "in a way that minimizes the impact on the market." However, this brought down the FTT rate by almost 90% and provoked massive seizures, since FTX customers were concerned about the security of their crypto assets. On November 7, Bankman-Fried denied rumors of insolvency, writing that "a competitor is trying to attack us with false rumors" and "everything is fine with FTX." Later these tweets were deleted, and then it became clear that the company was trying to get financial help. CZ denied intentionally creating a liquidity crisis. On November 7, he wrote on Twitter: "I spend energy on construction, not wrestling." However, Tim Mangnall, whose Capital Block company advised both Binance and FTX, called it a "cunning" business maneuver that would allow Zhao to "buy one of the largest competitors for less than a dollar." CZ, King of the Crypto Binance has now dropped this deal. The crisis in FTX is likely to strengthen its competitor's position as the world's largest crypto exchange. Binance is already bypassing several of the largest venues combined in terms of trading volume - we are talking about companies such as Coinbase, Kraken, OKX, Bitfinex, Huobi, and FTX. Now crypto exchange will probably have more control over common coins. Similarly, Changpeng Zhao, who has already become one of the most prominent figures in the crypto sphere, will strengthen his influence on issues related to politics and regulation. For the part of the community that believes that cryptocurrency should support decentralization, the merger of the two largest world exchanges will also be a cause for concern. Decentralization means evenly allocating power and eliminating individual points of failure, but falling FTX does not contribute to either. After Binance's rescue plan was first announced, Bitcoin and Ether prices fell by more than 10%, causing the market to lose more than $60 billion. The fall may continue. In addition, the collapse of FTX raises questions about how to protect cryptocurrency owners in the future. One of the CZ proposals is to oblige crypto exchanges to provide transparent "evidence of reserves." In other words, they have enough cash to finance the withdrawal of funds by customers. In a tweet, he promised that Binance would "soon" implement this policy. Coinbase CEO Brian Armstrong expressed sympathy for FTX but also pointed to "risky business practices" and "conflicts of interest" that made the company vulnerable. He also hurried to allay concerns that Coinbase could face a similar liquidity crisis. Nevertheless, this situation is another warning about how risky it is to transfer your entire crypto portfolio to an exchange and how important it is to keep the opportunity to manage assets on your own. Can I Get My Money Back From FTX and How? Bitget Exchange created a $5 million Builders Fund to help customers who were affected by theFTX bankruptcy. Those users can apply for financial assistance. However, only FTX-affiliated partners, customers with assets worth more than $50 000, and a monthly turnover of more than $10 million will be able to do this. Later, this fund increased to $300 million, but the requirements for obtaining help are still quite high: it was first created to cover the losses of strong and large traders, to minimize reputation damage, and to drag FTX customers to the Bitget exchange. If you have small deposits, up to $50,000, most likely you have no chance of returning your funds, unfortunately. What Conclusions Can be Drawn From the Bankruptcy of FTX?  The fall of such a large exchange shook the crypto space. FTX and Alameda faced the prospect of bankruptcy with $8 billion in debt, while recipients of FTX Venture investments, such as Solana , are experiencing a huge capital outflow. Never keep large amounts of money on the stock exchange. If you use the investment products of the exchange, distribute the capital so that it is divided into small parts in different exchanges. Keep your assets in cold wallets. Whatever that amount is. Even if you have $100 laying in your account on an exchange, transfer them to a cold wallet . This is not about the amount of money, but about the right capital management skills.
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The Future of Money and the Role of Crypto in It
The Future of Money and the Role of Crypto in It

The Future of Money and the Role of Crypto in It

John Martin 8 min read
Money has changed human society, allowing commercial transactions to take place even between geographical regions at a considerable distance from each other. It makes it possible to move wealth and resources in space and time. For much of human history, however, it has also been the subject of greed and waste. Now money awaits a change that can transform banking, finance, and even the structure of society. Most notably, the era of physical, or cash, money is coming to an end even in low- and middle-income countries; the era of digital currencies is coming. In this text, we’ll discuss different financial future predictions, the role of crypto, and its future. Cryptocurrencies vs Fiat Money Many financiers note that cryptocurrencies can set new financial models — more improved, simplified, and modern. Among the advantages of cryptocurrencies, they note anonymity, speed, lower costs of transactions, cross-border transfers that are not limited by barriers, full ownership of assets, lack of regulation by the state, and payment of taxes. Fiat currency is distinguished by: the mandatory presence of an issue center, which has exclusive rights to issue money (for the dollar it is the Federal Reserve Service); unconditional inflation: the money supply increases and its purchasing power decreases over a long period; the constant increase in operating costs associated with the maintenance of large amounts of cash; increased transaction costs. Cryptocurrencies on blockchain technologies, such as Bitcoin, are fundamentally different: the absence of an emission center: it is programmatically limited when launching cryptocurrency (in particular, there cannot be more than 21 million bitcoins); belonging to a person: cryptocurrency belongs to a specific cryptocurrency account or wallet , while the purchasing properties of the banknote can be changed by the issuer, and the paper money itself is generally withdrawn or prohibited for circulation; reverse inflation model: the more often cryptocurrency is used, the higher its value, as the demand for coins increases while maintaining the volume of currency; lower transaction costs: according to some estimates for Visa, this is $2, and for Bitcoin — $0.35 in medium-term operations.  These differences demonstrate the advantages of cryptocurrencies over fiat money. But for there to be a global transition from centralized to decentralized finance , and for the blockchain to turn from a candidate technology into a new system of work for the world economy, two key conditions must be met. Cryptocurrency should receive the status of a state currency. There are already such precedents: in 2021, in El Salvador , Bitcoin was adopted as a means of payment in the country. Cryptocurrency should begin to conclude interstate trade contracts. The finance industry of the future is at the very beginning of this path. And although the number of transactions over the past few years has noticeably increased, so far cryptocurrency is more of an investment tool with a very weak change function. The real volume of goods and services that are sold and bought for cryptocurrency is still insignificant. We are on the verge of a new era of non-dollar trade. Whether cryptocurrencies can compete for the place of the dollar with other fiat currencies largely depends on large-scale entrepreneurial projects in the field of blockchain. The Problem of Regulating Cryptocurrencies in the World It is very difficult for governments and central banks to regulate digital decentralized systems, which were created to avoid state control and were specifically designed to exclude public authorities and banks from their monetary circulation and confirmation of transactions and rights. It is even more difficult to develop a common approach to cryptocurrencies for countries with different economic and political weights. In the world's largest economies, the assets of traditional banking systems amount to tens of trillions of dollars and significantly exceed the size of the global cryptocurrency market, and in developing countries, the money supply in the national definition is several times or even several tens of times less than the volume of the cryptocurrency market.  Decentralized forms of finance (DeFi) are gaining popularity in developed countries, while peer-to-peer (P2P) platforms are becoming increasingly common in emerging markets. Some central banks see cryptocurrencies as a threat to the financial sovereignty of their countries and risks to traditional banking systems and citizens, including the risks of fraud, theft , and hacking, so they propose a complete ban on them. Other regulators believe that the crypto market is enough to only monitor so that it does not interfere with innovation now, but subsequently apply existing legislation and regulations to this sector of "digital assets." The problem of regulating the crypto market has become a global one, so the coordination of the efforts of regulators to create rules and procedures is beginning to take on global financial management institutions, such as the International Monetary Fund, the Basel Committee on Banking Supervision, the Financial Action Task Force (FATF), the International Organization of the Securities Commission (IOSCO). It is planned that the zone of control of regulators will include operations to exchange traditional fiat currencies for cryptocurrencies, crypto exchanges, intermediaries that provide access to cryptocurrencies and services, as well as any economic entities that accept payments both in traditional currencies and in cryptocurrency.  Payment systems will be standardized and transaction storage and clearing service providers will be certified. Cryptocurrency mining will fall under separate control in several countries, and in others, it will be placed under a ban. CBDC as Transition Before the complete replacement of fiat currencies with cryptocurrencies, the global financial industry will undergo another intermediate stage related to the release and circulation of CBDC, many experts say. CBDC (Central Bank Digital Currency) is the digital currency of central banks. Those currencies are issued centrally and retain all the advantages of the classic fiat model, but they have cheaper transactions, 24-hour access to liquidity for banks, and the possibility of integrating smart contracts into the country's economy. In addition, with the help of this tool, the state retains control over the monetary sphere and can stimulate payment for goods in the national cryptocurrency, increasing its turnover. Since 2017, many countries have been experimenting with CBDC: such cases (in one stage or another — from the pilot to the working project) have been implemented in Thailand, Hong Kong, China, the UAE, Singapore, Canada, Great Britain, France, Cambodia, Uruguay, Russia, El Salvador, and the Bahamas. NFT for a New Level of Financial Confidence Replacing fiat money with cryptocurrency may have another interesting effect — the financial industry reaching a new level of confidence. We can take, as an example, programs based on NFT technologies. When buying NFT, the investor does not just acquire the right to a discount: he can resell it, thereby gaining liquidity. At the same time, one participant in the transaction transfers funds to the other party, as a rule, without any contracts and intermediaries represented by banks. New principles arise — full responsibility for their transactions and the presence of a certain moral component, trust, in contrast to the traditional financial environment, impersonal and mechanized. As a result, the crypto market will gradually fill the established economic culture with new content. Bitcoin Future According to a Chainalysis study, the volume of bitcoins in investors' wallets has increased significantly in recent years, and more interestingly, it has significantly exceeded the volume of coins in traders' "speculative" wallets. About 77% of the "mined" bitcoins (which are not classified as lost) have not changed their current address for five years or longer. According to a Bitstamp survey, 72% of institutional and 73.1% of individual investors plan to increase their investments in crypto assets in the next five years. About 16% of Americans and 10% of Europeans own cryptocurrencies. Among the well-known institutional investors are Grayscale Investments, Square, Microstrategy, Tesla, Meitu, Massmality, etc. Interest in cryptocurrencies is also shown by banks, in particular, Goldman Sachs and Morgan Stanley. Digital coins received special investor attention precisely during the Covid-19 pandemic. In particular, analysts at JP Morgan believe that investors' rejection of gold in favor of Bitcoin during 2021 was associated with an increase in inflationary trends in the world. In such conditions, some even began to call cryptocurrencies a "haven" for investment.  However, it is quite possible that after the drop in the price of Bitcoin by 75% and a three-fold reduction in the capitalization of the crypto asset market, confidence in the safety of this "harbor" will decrease. Conclusion: Is Crypto the Future of Money? In 2018, the capitalization of the cryptocurrency market decreased by more than eight times — to $102 billion. But this did not prevent it from reaching a record $2.9 trillion in November 2021. Therefore, there is no unambiguous answer to the question "what future do cryptocurrencies have?" It all depends on their ability to gain the confidence of settlement participants and investors, effectively performing the functions of money. It is possible that still lies ahead. The cryptocurrency market and ecosystem are dynamically developing, the interest and awareness of individual and institutional investors are growing, and the transparency of issuers and intermediaries is increasing. All this will continue to contribute to the deepening of the market, and a decrease in the manipulability and sensitivity of cryptocurrencies to situational factors and news. In such conditions, over time, the exchange rate fluctuations of cryptocurrencies will decrease. The development of technologies will help solve problems of scalability, the vulnerability of blockchain networks to hacker attacks, irreversibility, and non-environmental transactions. Therefore, probably, the convenience, speed, and security of calculations with cryptocurrencies will continue to gradually improve. Thanks to the formation of the legislative field, comprehensive regulations, and supervision, cryptocurrencies will receive a clear legal status, and market participants will gain the right to legally conduct business and protect their interests. All this will likely contribute to the spread of transactions made using cryptocurrencies, and their share in public savings and investment portfolios will increase. And accordingly, the associated risks will grow.
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Cryptocurrency and the Stock Market: Pros/Cons and What are the Differences Between Them
Cryptocurrency and the Stock Market: Pros/Cons and What are the Differences Between Them

Cryptocurrency and the Stock Market: Pros/Cons and What are the Differences Between Them

John Martin 10 min read
Crypto assets can utilize all investment strategies in the stock market, from dividends to balancing assets between growth and value stocks and IPO analogs:ryptocurrency trading and trading in stock and financial markets at first glance may seem identical. But there are differences in these industries that cannot be ignored since they make their adjustments and can affect the success of trading. In this text, we will try to understand these differences and compare the cryptocurrency and stock markets. With the advent of Bitcoin in 2009, the world first met with digital currency and blockchain technology. Initially, large investors considered cryptocurrencies just a fad. Since then, a lot of time has passed and cryptocurrency markets have grown like yeast. However, this revolutionary technology was not without drama. While some experts expect the cryptocurrency market to be a useful addition to traditional financial markets, others fear that cryptocurrencies may collapse and pull the rest of the market down. One way or another, the impact of digital currencies on financial markets is undeniable. The main purpose of cryptocurrency trading is similar to the purpose of trading traditional stocks: both are used for earnings. Therefore, more and more investors are adding cryptocurrencies to their portfolios. According to a CNBC study, currently, 1 in 10 Americans invests in cryptocurrency. With digital assets, investing becomes easier than ever. High volatility creates greater income potential. And if you add to this the possibility of round-the-clock trading, a high credit shoulder, low fees , and thresholds for transactions, then it will soon become clear why so many novice investors and experienced exchange traders are starting to switch to cryptocurrency. In this article, we will analyze the similarities and differences, as well as the pros and cons of trading in cryptocurrencies and stocks. Is the Purchase of Cryptocurrency Similar to the Purchase of Shares? Yes. After all, buyers exchange funds with sellers of digital assets, and the price of these assets is determined by demand and supply. Transactions are carried out online, and both types of these investments entail certain risks. Cryptocurrencies and stocks behave similarly. If you traded on the stock market or forex, then you will have absolutely no problems with the interface of any cryptocurrency exchange. But it is worth noting, although the fundamental analysis (fundamental analysis is the approach used by investors to determine the internal value of a cryptocurrency...) of a cryptocurrency or token is slightly different from the analysis of shares, the basic trading mechanism, and general technical analytics are almost identical. For example, similar types of orders are available in both markets. Market orders are either bought or sold at the current market price. Limit orders have a set price at which the trader wants to buy or sell the asset. A stop-loss order works on the same principle as a market order: it is carried out only after reaching a certain value of the price. Moreover, intraday stock trading is very similar to spot cryptocurrency trading. In intra-day trading on the stock market, the trader speculates on the securities exchange rate for one trading day. The same short-term trading strategies apply to cryptocurrencies, with the only difference being that cryptocurrency markets never close. Cryptocurrencies apply such day trading strategies as swing trading, range trading, scalping, and arbitration transactions. The cryptocurrency market is characterized by volatility and deep liquidity, but these are the most important conditions for profitable intraday transactions. Main Differences Between Cryptocurrencies and Stocks The growth of the crypto portfolio by more than 1000% in a matter of weeks is not usual in the crypto market, but still, this happens. The ability to generate significant profits in a short time and a low barrier to entry attract more and more investors. The threshold for entering the cryptocurrency market is quite low because you can trade them in tenths and hundredths. However, the higher the potential for substantial earnings, the higher the risk. Cryptocurrency prices (to put it mildly) are not stable, many experts consider cryptocurrency trading a gamble rather than a real investment. Stock markets, by the way, are also volatile, although not so significant. The main differences between cryptocurrencies and stocks are best noticed when considering the following characteristics. Liquidity Liquidity reflects the ability to quickly and freely buy or sell an asset on the market. Crypto markets are inferior to stock markets in this indicator, since stock markets have higher trading volumes, and, as a result, higher liquidity. In the crypto market, there are significantly fewer active traders, respectively, and liquidity is less. But cryptocurrency is different. Bitcoin, for example, is the most liquid digital currency, it is traded by most traders. The low market capitalization of coins, tokens , and small crypto exchanges often creates liquidity problems and makes these assets unfavorable for investment. But when trading shares, similar problems arise. For example, when investing in OTC small stocks or working with brokerage companies with micro capitalization. Possession Buying stock on the stock market makes the investor a shareholder and awards him a share in the company. The shareholder has the right to various privileges, such as capital gains or losses, dividends on profits, as well as the right to vote in solving various issues of the company. However, if the purchase passes through a brokerage company, then technically this means that the broker owns the shares and not the real buyer. Very few investors own shares on their behalf. If you buy cryptocurrency, then you become the sole owner of the purchased coin or token. Usually, cryptocurrencies are traded and stored on exchanges. However, cryptocurrency can also be transferred to a separate electronic device (cold storage), which, as a rule, is safer than an online wallet . And if the secret keys to your wallet are kept safe, then you can not worry about theft . Stock Markets Fluctuate Only During the Trading Day Cryptocurrency markets, in turn, never close and are influenced by other digital assets, events in the crypto space, and changes in world stock markets. Because of this wide range of variables that affect the market around the clock, cryptocurrencies are more volatile compared to stocks. High volatility means less price stability, which can stop corporate investors from investing in cryptocurrencies. It also means that traders have more opportunities to enter and exit trades and make high profits. Non-Stop Trading The work of cryptocurrency exchanges without breaks and weekends gives wide freedom to the trader. If a trader is profiting from short-term speculation, he can plan his time regardless of location, time zone, and schedule, and at any time connect to the market to find interesting transactions. At the same time, it is important to understand what time the bulk of crypto traders of a particular region wakes up and take into account that with the arrival of a large number of new players from a certain region, the price can sharply move in one direction or another. At the same time, the availability of the market 24 hours a day does not indicate that it is necessary to monitor cryptocurrency quotes around the clock High Volatility With the appearance of cryptocurrencies, for the first time in human history, private investors had the opportunity earlier than institutional investors to gain access to a new promising class of assets. Cryptocurrencies are the first market where there is practically no institutional capital, and this, in turn, generates volatility. Volatility creates several factors: private investors have a higher rate of return on capital, the timing of capital placement is shorter, and the competence of participants is lower. Free Cryptocurrency Market Stock markets are regulated by law, and margin requirements are quite strict. Trading derivatives in the cryptocurrency market is much more affordable than margin trading in the stock market. On the leading derivatives exchange, the minimum deposit is only one US dollar. In the stock markets and the memory, they would not hear about such figures. The size of the credit shoulder on leading exchanges of digital assets varies from 2 × up to 100 × (or even more). Pricing In digital assets, the price is formed according to the classic model of the balance of supply and demand, since the amount of a particular currency is limited and, by regulating the number of those coins in circulation, it is possible to form a price. The price in traditional markets consists of many factors: forecasts of analytical agencies, financial indicators of companies, ratings, government regulation, news background, and other dependencies. Crypto exchanges are often accused of inflating volumes to get a higher rating and attract more traders. So far, there are parallel ratings of exchanges and trade volumes showing very different results, but soon indexes will begin to form the current leaders of the traditional market, and they can be more trusted. Protection and Insurance Due to low volatility, investment portfolio insurance is practiced in traditional markets. This financial instrument benefits both insurers and investors, as it helps protect investments in force majeure. This is not practiced in cryptocurrency markets, since movements can be so strong that insurers simply do not have enough funds to cover losses if chaos begins in the market. The insurance market in the field of digital currencies is just beginning to form, and derivatives are already appearing, such as options for Bitcoin and Ethereum . If we talk about the DeFi strategy, then insurance projects appear that take on the function of an insurance agent, that is, they will reimburse funds in the event of unplanned losses, such as protocol hacks, and loss of assets by a smart contract that invests them in the interests of the user. Diversification The goal of diversification is to hold assets that manifest themselves differently in different markets. Stocks have fewer options for diversification, because all stock markets, as a rule, are influenced by the global economy. Stocks and bonds are affected by inflation and monetary and economic policies. The low dependence of Bitcoin and Ethereum on securities and stock market assets makes investing in cryptocurrency an attractive portfolio diversification strategy. Cryptocurrency prices largely depend on the prices of the largest coins, for example, BTC and ETH . Stocks and bonds depend on a variety of economic factors, individual indicators of companies and sectors, as well as on demand and supply within the corresponding indices, industries, and services. Cryptocurrencies or Stocks: What is Better for Short-Term Investments? Cryptocurrency is a promising short-term investment with the potential for both rapid high profits and equally rapid losses. The average yield on the stock market is about 10% per year, but the yield on Bitcoin, which became the most profitable asset of the decade, is 230%. Keep in mind that digital assets can grow greatly in a few hours or collapse in a matter of minutes, as happens when executing the "pump and reset" scheme. Not all transactions bring stable and guaranteed profit. However, the volatile state of cryptocurrency markets makes them an ideal tool for traders who want to make quick money. Cryptocurrencies or Stocks: What is Best for Long-Term Investments? The stability of stock markets attracts many long-term investors. To illustrate traditional market timeframes, the S&P 500 has been watching the performance of the five hundred largest US companies for 46 years, 10 of which were unprofitable according to the index . However, in the long run, portfolios still grew. In addition to the constant risk associated with high volatility, crypto markets also face the influence of authorities, slow implementation in the rest of the world, and cybersecurity threats. Despite these risks, the cryptocurrency market can become a useful tool if you study how it works and act carefully. Regardless of whether you invest in cryptocurrency or stocks, the right way is to play for the long term. If you are not an intraday trader, then it is better to avoid speculation on short-term volatility. In Conclusion When choosing an asset for trading, it is worth building on your experience, trading strategy, and the amount you are going to invest. Stocks are better suited for those looking for predictable, limited investment growth in the long run in the face of low volatility. Cryptocurrencies are better suited for those who want to diversify their portfolio and insure it against inflation and factors that negatively affect financial markets.
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Web3 Trends and Top Projects
Web3 Trends and Top Projects

Web3 Trends and Top Projects

John Martin 10 min read
The Web3 industry is only emerging, but developers are actively working on its mass implementation. Web3 is the next stage in the development of the Internet, which will be controlled by ordinary users and creators. Web3 vs Web2 Unlike Web 2.0, the third version of the Web is focused on improving scalability, security, and decentralization. Interaction between Web 3.0 and metaverse occurs using NFT. Web 3.0 is a group of decentralized applications that can "collaborate" with virtual worlds. Examples include Decentraland Mana and the Land token. Web 3.0 is not hosted on the servers of private users or even Web3 companies, but in separate places. Storage cells are computers, laptops, and other user equipment. Each time information is entered, it is copied to all nodes. As a result, data manipulation is eliminated. Benefits of Web 3.0: lack of central regulation; less censorship ; the ability to express one's thoughts; monetization for presence on the Internet, etc. To switch to Web 3, you need to understand cryptocurrency services, start crypto keys, deliver DApps applications, etc. Web 3.0 is a new concept of the Internet, which is based on decentralization and the absence of a single supervisory authority. It is the next stage after versions 1.0 and 2.0, which opens up more opportunities from the data control position. Web 3.0 crypto meets the declared criteria and is the next step in the hierarchy of digital assets. In this text, we will talk about the current trends in this industry and consider some interesting projects. Web 3.0 Trends Creative DAO The Internet and the simplicity of global communication have provided creative actors with development opportunities. Web3 technologies are also in their interest. In particular, the blockchain provides security, peer-to-peer (P2P) payments, and confirmed ownership. DAO (Decentralized Autonomous Organization) is a type of organizational structure built based on a blockchain. Such an organization unites like-minded people who are working on the long-term success of a project or creator. Within the DAO, participants who own tokens usually have the right to vote. In 2022, creative projects and creative personalities will be surrounded by more and more DAO, which will offer them support and feedback from community members. Stabilizing the NFT Industry Over the past two years, the NFT world has experienced ups and downs. Last year, non-fungible tokens faced an incredible level of growth and caused a great stir around themselves. In 2021, the NFT marketplace OpenSea grew to an incredible level, and the tokens themselves began to appear in pop culture and social networks. However, this year sales have fallen, and some are wondering if the NFT bubble will burst. The downtrend is largely worrying for those industry participants who are looking to make a quick profit. Loyal fans still see value in these tokens. As speculation around technology begins to fade, the industry will enter a new stage in which NFTs will be applied in many areas of our lives. The mechanism of tokens (for example, in the format of patents, loyalty rewards, and in-game assets) will encourage users to own them, and not trade them. Cooperation Between DeFi Protocols Hacker attacks, destabilization, and other incidents in the Web3 sphere will continue to occur both in 2022 and, probably, in 2023. For example, in March there was a loud fall in UST and Luna tokens, due to which investors lost $60 billion. Cryptosphere leaders will unite to find solutions to such incidents and ways to prevent them in the future. In 2022, even "competitors" are likely to cooperate within the framework of a single goal - to build a better future for the internet and a better version of Web3. And as these incidents continue to occur, more DeFi protocols will unite in unstable situations. TOP-5 Web3 Cryptocurrencies by Capitalization Polkadot ( DOT ) Open source multi-purpose protocol. Simplifies the transfer of data and different types of assets. Designed to connect public and private chains, accelerates the exchange of information and transactions.  Created by the Web3 Foundation. The founders are Gavin Wood, Robert Habermeier, and P. Chaban. The network is flexible and adaptive and has a convenient management system and high security. You can customize and adapt the monitoring process to your needs and conditions. The total number of tokens is 1 billion, and initially, this number was 10 million. The network used NPoS mechanisms focused on the selection of validators/nominators for security. The purchase of a token is available on many exchanges, including OKEx, Huobi, and others. The DOT token has a rate of $7.75 and is in 11th place by capitalization among all cryptocurrencies. At the time of writing, the coin is falling in price due to the characteristic bearish trend, which makes the offer attractive to investors. The project is developing and raising the course is a matter of time. Chainlink ( LINK ) A decentralized network designed to link smart contracts to real-world information. Created by S. Nazarov and S. Ellis. The ICO was held in the fall of 2017, during which it was possible to raise $32 million. At the same time, LINK is a cryptocurrency native to Chainlink, used to pay operators. The goal of creating the platform is to link blockchain smart contracts with the rest of the universe. Chainlink oracles (LINK) connect to the Ethereum network, provide external information and start the execution of smart contracts. Network members are rewarded for providing access to API information or other external data. Cryptocurrency rate of Web 3.0 LINK 6.81 $. On January 10, 2022, the price was $27.57, after which there was a gradual decrease. But this does not prevent the token from being in the lead and taking 22nd place in the general list by capitalization. Filecoin ( FIL ) A decentralized Web 3 system designed to store the most important information. The history of the project began in 2017, when already at the first ICO managed to raise $205 million. Initially, the launch was planned for 2019, but it had to be postponed to October 2020. Filecoin (FIL) is created by experienced computer scientist H. Benet, known for the InterPlanetary File System. The essence of the project is decentralized data storage and the application of its security system. It simplifies access to information and complicates censorship. In the Filecoin (FIL) system, users themselves store data and receive a reward for this. The network is based on PoR and PoS. System nodes compete for the transmission of information to customers. Subsequently, a reward is issued from the FIL commission. At the time of the review, the value of Filecoin (FIL) is $5.88, the coin is on the 38th capitalization place regarding all digital assets and in third place among cryptocurrencies on Web 3.0. It has great prospects for development. Theta Network ( THETA ) The blockchain-based network was created for video streaming. Launched in March 2019, it works in the form of a decentralized network. The creators are the co-founder of Twitch — J. Kan, and YouTube — S. Chen. Web 3.0 platform has its own digital asset Theta, performing management tasks. The uniqueness of the project is the decentralization of streaming video. This is a streaming platform that rewards users and gives additional bandwidth. With the help of the program, it is possible to solve problems by showing videos in different parts of the planet and reducing costs. At the same time, quality is at a high level. The Theta token is used to manage the platform. At the moment, its price is $1.16, and the total number of coins in circulation is 1 billion. With a capitalization of $1.15 billion, the token is in the 4th place among Web 3 projects and in the 42nd position among all cryptocurrencies. An additional advantage is the openness of the source code, which allows you to introduce modern innovations and make edits. Helium ( HNT ) Decentralized blockchain network for IoT devices, launched in the summer of 2019. It allows low-consumption wireless devices to share information and send data over the Internet. The role of nodes is performed by an access point providing a combination of a gateway and a mining device. The goal of creating Helium is to improve the communication capabilities of the Internet of Things. And if in 2013, when the company was created, this direction was in its infancy, today the situation has changed. The system is interesting to device owners and users who work with IoT. At the same time, the basis is PoC and a new consensus algorithm. HNT is a system token that is available without restrictions. But there is a monthly limit - no more than 5 million coins can be issued monthly. At the same time, the mining time is from 30 to 60 minutes necessary to unlock the award. The essence of the project is simple: first, the owners of the nodes accumulate NHT to create networks of network infrastructure and then resell the asset. As of June 2022, there are 119.5 million such coins, the exchange rate is $9.07. Taking into account the capitalization of 1.076 billion tokens, HNT ranks fifth in Web 3.0 projects and 44th among all cryptocurrencies. Lesser Known Web3 Projects In addition to the projects discussed above, the following representatives of Web 3 deserve attention: Siacoin ( SC ) is a unique coin on Web 3. Provides information storage in the Dapp cloud. Sia cloud storage costs less than competitors. The token price is 0.004 dollars, the capitalization is 215 million dollars, and the number of coins is 51 billion. Flux (Flux) is a decentralized platform on Web 3.0, offering unique products at the Amazon Web Service level. The use of Flux allows one to operate, place and maintain servers and also to start Web3 applications. Ocean Protocol . A convenient tool for creating Web 3.0 applications. It is aimed at decentralizing the exchange of information and gaining access to the network. It helps you buy/sell data, and manage the community financing process. The value of the token is $0.22, and the capitalization is 44 million. Audius ( AUDIO ) . An interesting project that will appeal to music lovers. This is a streaming platform whose goal is to reduce contact with the record company. For staking cryptocurrency, tokens and fan votes are issued. The presence of coins provides access to control, additional functions, increased security, etc. Radicle ( RAD ) . Decentralized project on Web 3.0, designed to sponsor different projects and participate in management. The token exchange rate is $1.81, and the capitalization - is $55.6 million. In addition to the above, other tokens can be named, including Casper ( CSPR ), NuCypher ( NU ), Chromia ( CHR ), and others. Web 3.0 tokens can be bought through large exchanges. To do this, you need to register, replenish your (for example) USDT account, choose a suitable pair and go to the cryptocurrency purchase section.
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