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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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What is IPFS?

What is IPFS?

John Martin 8 min read
IPFS (InterPlanetary File System) is an open-source hypermedia protocol that allows peers to store and distribute data in a single distributed file system. The author of the decision — the founder and head of the American startup Protocol Labs Juan Benet - called it a "distributed, permanent web," bearing in mind that the site created in IPFS can never be closed by anyone. "IPFS is a high-performance block storage model with content addressable hyperlinks," he explained in a whitepaper project. An interplanetary file system is a peer-to-peer (P2P) hypermedia protocol designed to make the Internet faster, safer, and more open. It was created to transfer scientific data sets up to 100 GB in size between nodes. Benet found that modern methods of transmitting and storing information on the network are slow, centralized, and could be easily hacked . Based on these observations, Benet decided to improve the system with IPFS in the following aspects: Speed: Currently, the hypertext transfer protocol (HTTP) is the most common form of the request -response protocol in the client-server (Internet) computing model. However, where HTTP downloads data from only one server, P2P IPFS extracts fragments simultaneously from several nodes (users), which means significant bandwidth savings. Efficiency: Decentralized IPFS structure works similarly to BitTorrent . Nodes store copies of data (files, movies, images, etc.) to then send them to the user at the request of a hash (unique locator code for the file), like seeding. When data is first loaded into IPFS, only one copy is created with one hash, which means that less information needs to be processed and less storage is required. In addition, this means that IPFS does not depend as much on Internet connection as modern systems, which makes information more accessible. Security: IPFS uses two systems to ensure that data is not modified or tampered with. First, all data that is loaded into the system is unchangeable. Secondly, each file is assigned a unique fingerprint — a hash. The user can compare the hash code he was looking for with the hash code he received. If it is identical, then so is the information inside. Decentralization: The P2P IPFS system guarantees the availability of information regardless of censorship . Currently, the Internet is highly centralized, and individual companies, such as Amazon Web Services or Google Cloud, own huge server farms that store all the data published on the Internet. A government or a large company can censor or even erase information that we have access to, as is the case in some countries, including China and North Korea. Using decentralized and trustworthy P2P, IPFS ensures data availability for all. How Does IPFS Work? IPFS is built on blockchain technology, which means that it is decentralized and does not require trust, and relies on its nodes to store and exchange information over the network. Like nodes that check and store information, for example, in crypto IPFS uses its nodes to exchange and store information (files, videos, etc.) on its network. This is done in the following ways: Search for information: servers are currently searching for information based on URLs that tell the Internet where the information you need is located (for example, a website). This can be problematic when the server is disconnected or hacked. IPFS bypasses this path through the server using unique hash codes to locate the file content itself. The hash code directly references the file you are looking for, not the location of the file. Store and protect information: Files are stored in IPFS data objects on the blockchain. Each data object contains up to 256 KB of data but can be associated with subsequent IPFS data objects to store more data. Thus, the entire project is stored in various IPFS data objects associated with each other through the blockchain, which makes it difficult to hack or delete the project. Data change history tracking: Although data stored in IPFS is immutable, it allows you to manage versions. This means that the user can download enhanced versions of the file as they work on it. Each file is assigned its hash code and loaded as a commit object. Then they are linked in the same way as data objects, which allows us to track the order of loading and, thus, see the progress of information (for example, versions of the dissertation, novel, research, etc.). When information is loaded into IPFS, the address for accessing the object, file, or user data in the system is formed with binding, not to the server, but to its unique cryptographic hash identifier (CID). When you reload a file, the CID does not change, and new hash IDs are assigned to the updated versions of the file. That the users who got access to the early version of the file could have it and to later options, service of the names InterPlanetary Naming System (IPNS) — DNS analog on the traditional Internet is applied. How Do I Use IPFS? IPFS allows the user to access files (videos, websites, articles, research, etc.) anywhere without the need for a centralized side. This makes it faster, safer, and more open. Users can access information that might otherwise be censored because the data is accessed directly from the source. In addition, this information can be accessed in regions where there is no good Internet connection, which will further empower poorer or more corrupt countries. Another feature, especially useful for scientists or enterprises, is the ability to track the progress of work, since IPFS associates each version of the file with the last, thereby maintaining linear tracing. Finally, the name InterPlanetary indicates that in the future this information can be transmitted between planets. Currently, under good conditions, sending an information request from Mars to Earth will take four minutes, and sending back four minutes, plus a few milliseconds of processing time. However, if the content was already downloaded to Mars once, then the file will already be stored there and, thus, can be downloaded immediately. In this regard, IPFS is indeed the network of the future. IPFS is still in development and may contain errors and hidden vulnerabilities. However, it is assumed that IPFS can be convenient for storing important information and creating static sites. In practice, its use increases data transfer speed and network throughput reduces the workload on nodes due to its distribution, allows you to circumvent censorship, and avoid DDoS attacks and the appearance of "dead" links. There is no single point of failure in the system, and nodes do not need to trust each other. In addition, theoretically, content in IPFS can be stored forever. The first web resource with IPFS support in 2015 was the Neocities hosting service. Based on IPFS, a decentralized video platform DTube, an online trading platform OpenBazaar and other solutions have been created. The IPFS link added to the cryptocurrency transaction allows you to save huge amounts of data protected from changes in the blockchain, without weighing it. For example, in the spring of this year, after the arrest of Julian Assange, one of the developers of Bitcoin Cash posted on the Wikileaks.cash website in IPFS and the form of a link in the BCH blockchain a complete archive of Wikileaks documents — about 30 GB. Since 2014, the Protocol Labs development team has also been working on creating decentralized Filecoin file hosting based on IPFS. The project is preparing to launch test and main networks, but back in 2018, Huang Benet discovered that the achievements of his company inspired the creators of TRON : several sheets from the documentation for Filecoin and IPFS in a slightly modified form entered the whitepaper of this Chinese project. And in the spring of 2019, TRON announced its intention to launch its version of IPFS based on BitTorrent — BTFS. How to Start an IFPS Node The official software package from Protocol Labs IPFS Desktop. It is available for Windows, Mac, and Ubuntu and allows you to install and manage your site so you can add your files to the network. Meanwhile, IPFS Companion is a web browser add-in available for Chrome, Edge, Brave, Firefox, and Opera. It allows you to interact with an IPFS desktop and an installed IPFS host directly from your browser. It also adds support for ipfs:// addresses for browsers that do not initially support them. Main Perspectives IPFS is one of the cryptocurrency platforms that helps scale the industry by providing a peer-to-peer and distributed file system architecture, which is needed as a basis to support the growth of cryptocurrency platforms. "Content in IPFS can move through any unreliable intermediaries without reducing control over the data and without putting it at risk," Juan Benet said. In his opinion, the integration of IPFS with blockchain technology is similar to the ideal one. Using IPFS inside a blockchain transaction, you can place constant links that are unchanged. Timestamps protect data without the need to store it on a chain , which is a convenient method for secure solutions outside the chain that help scale blockchains. According to bytwork.com, many Web3 services already use IPFS in a wide range of different applications. Filecoin is Protocol Labs proprietary distributed storage area network ( SAN ) based on IPFS. This encourages node operators to place files using rewards in cryptocurrency. Audius is a decentralized music service that uses IPFS to host its audio files. Pinata is an NFT hosting service that uses IPFS to back up cryptographic collectibles for partners such as Realistic and Sorare. OpenBazaar is a peer-to-peer e-commerce platform managed by IPFS. Morpheus.Network is a network supply chain service that also uses IPFS.
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6 Crypto Trends of 2022 (And What's the Next Big Thing in Crypto)

6 Crypto Trends of 2022 (And What's the Next Big Thing in Crypto)

John Martin 9 min read
After a long lull in the cryptocurrency market, there is a revival. The era of Web 2 is gradually coming to an end, and it is being replaced by the era of Web 3. NFT , DeFi applications, GameFi , new crypto coins, and DAO are all harbingers of the beginning of this irreversible process. Thanks to the arrival of new players — from global corporations to ordinary gamers — big changes are expected in the cryptocurrency market in the coming months. They will also affect new developments. Let's look at 6 trends that experts today call the future of cryptocurrency. 1. Metaverse The metaverse is a hypothetical network of three-dimensional virtual worlds, where you can immerse yourself with the help of AR and VR technologies. Many companies consider it the next stage in the development of the Internet and the mobile ecosystem and offer exciting projects of virtual universes. It's no secret that at the end of 2021, against the background of Zuckerberg's statements and the renaming of Facebook to META , interest in the metaverse has grown noticeably. Human interaction is reaching a new level as social networks, payment systems, and augmented reality applications become part of the same ecosystem. Read more about META in our article. Experts are confident that buying digital real estate in virtual worlds will no longer be confusing. New crypto projects in the field of metaverse include De central, Sandbox, and Axis Infinity. Another striking example is the Cosmos project. New blockchains in the metaverse can become part of a separate infrastructure. Decentralized exchanges , stablecoins , and DeFi are already connected to the Cosmos ecosystem. Large companies, such as Google, may announce the creation of their virtual worlds after Facebook. 2. NFT and DeFi Many experts are confident that NFTs, which experienced a big boom in popularity in 2021, will remain more than in demand due to the development of metaverses. Non-interchangeable tokens will provide proof of ownership when purchasing virtual objects. Tokenization will continue to increase in volume — not only individual users but also entire companies are already resorting to it. A new industry for business relations was born out of a fleeting hobby. DeFi will be responsible for the convenience of economic relations in the metaverse. There is a "competition" going on in the wallet market right now: who will be the first to create a multi-chain wallet that will allow for cheap transactions between blockchains without using bridges and without overloading funds through additional layers of the network The market of NFT and decentralized finance will develop, as it has not reached its peak indicators, but a large percentage of the NFT segment will not be of particular value, the founder of Amir Capital Group Marat Mynbayev is sure. Nevertheless, developments in these areas allow the market to develop. 3. Legal Regulation In 2022, members of the crypto community may face increased activity related to the regulation of the digital asset market. The authorities can no longer ignore the growing interest of market participants in cryptocurrencies. The legal status of cryptocurrencies varies significantly in different countries. In some countries, transactions with cryptocurrencies are officially allowed: in Germany, bitcoin is recognized as a settlement currency, in Japan, Bitcoin is a legal property with a purchase tax. Currently, almost nowhere in the world is there a regulatory framework that establishes reference rules for conducting cryptocurrency ICOs. It follows from this that there are no legal protection mechanisms for both investors and persons issuing cryptocurrency tokens. Now in some countries, there are attempts to include crypto investment in the legal field and give cryptocurrencies an official status. The market is moving towards centralization, which will be marked by the emergence of services and control mechanisms. On the other hand, in 2022, market participants may expect new mechanisms for the legalization of a financial instrument and taxation. The first forecast of Messari CEO Ryan Selkis for 2022: the situation in the "real" world will worsen before it gets better. With a 70% probability, the US inflation rate will remain above 5% throughout the year. At the same time, an increase in interest rates will slow down the dynamics of the stock market and hurt rising stocks. For cryptocurrencies, this is good in the short term. But in the medium term, risks arise, as crypto companies will begin to be increasingly censored by Western technology and banking platforms in the face of the suppression of cryptocurrencies by the Joe Biden administration. However, not all experts believe that market participants should expect serious legal changes and stricter regulation in the new year. The authorities can only limit themselves to spreading rumors in the media to intimidate inexperienced investors. 4. Web3 and Blockchain Platforms Web3 is the concept of a new, third-generation Internet, decentralized and powered by blockchain and token economy. It is contrasted with the Web2 World Wide Web, which operates based on centralized platforms for social interaction between users. Large Internet companies, for example, Alphabet (Google), Meta (Facebook), Amazon, and Apple, consolidated most of the information. They occupy leading positions in online advertising, e-commerce, streaming, etc. In 2014, Ethereum co-founder Gavin Wood proposed a new concept, which includes decentralization. According to it, companies embed financial assets in the form of tokens into the inner workings of almost everything you do on the network. As part of the strategy, users interact without being tied to specific servers, data centers, and databases. Web3 will allow you to create platforms that no one controls, but that everyone can trust because of their underlying algorithms and protocols. It is proposed to achieve this with the help of advanced technologies such as blockchain, machine learning, big data, and artificial intelligence. Tokens and cryptocurrencies, independent of traditional financial systems, should become fuel for the third-generation Internet economy. Among the promising tokens of this sector, analysts call IOTA ( MIOTA ) and HNT ( Helium ); FIL ( Filecoin ) and BTT ( BitTorrent ); ( OCEAN ) Ocean Protocol — the fundamental token of Web 3.0; BAT ( Basic Attention Token) — a project that allows you to receive remuneration for viewing ads. In general, all projects are united by the fact that they solve the main tasks of the Internet of the future — the decentralization of the network, in which data and information fully belong to their owner, and in which the user and his rights have the main value. 5. P2E Games Play-to-Earn (P2E) is a new term for video games where gamers can earn cryptocurrencies and NFT tokens through their gaming activities. In the last few months, the Play-to-earn trend has gained great momentum. Gaming itself is a huge global market. There are more than 2.7 billion gamers in the world. At the same time, analysts expect that in the next few years the value of the industry will exceed $ 300 billion. Today there are two important problems in the industry: Players do not own their purchases in the full sense of the term. In-game items increase the player's productivity and enjoyment of the game but do not serve any other purpose. As a result, they fall into the category of entertainment expenses, not investments; However, as new business models for game developers become available (for example, commissions from secondary sales of NFT), new forms of gameplay will also appear. The number of games has already exceeded 200, while they occupy up to 45% of the traffic of all decentralized applications. As a result, the trend is even singled out in a separate direction of GameFi (Game Finance). The main idea of such games is still not the possibility of quick earnings, but the right to own digital property. With the development of the metaverse, such games will appear more and more often. Perhaps this will become one of the main ways to attract users to the new environment. Modern large companies in the field of gaming, such as Steam or Microsoft, will be able to apply new crypto technologies on their marketplaces or, conversely, suffer from the outflow of users to other sites where the commission is lower, the purchase is safer, there is the possibility of converting virtual items into real money and their subsequent withdrawal. 6. DAO DAO is a decentralized autonomous organization that is controlled by software code and does not depend on the human factor. There is no hierarchy in such systems, all decisions on changes in the protocol are made by all participants on an equal basis with each other. Each digital community is centered around a common cause: it can be the management of a library, a united workforce, a social club, an NFT collection, and so on. The most famous example of such a community is a crowdfunding organization, which is called The DAO. In 2016, the company attracted more than $150 million in investments, becoming the largest crowdfunding project in history. However, it was closed in the same year due to the theft of funds by hackers. But developers continue to learn from their mistakes and improve the technology. Now DAOs are popular in narrow circles of crypto specialists, but their potential is huge — automation of management will greatly reduce bureaucracy and the human factor in almost any company. Experts identify the key features of the DAO: The band members are independent parties; Availability of SmartContract — open source code on the blockchain; Open Membership; A token is used to manage the community, which distributes funds according to priorities, encourages participation, and punishes violations of the rules; The group has internal capital to automate the market, prevent collusion and stimulate the creation of upward communities. Of course, these are not all the trends of cryptocurrencies that we expect in 2022. The growth of investments in this segment is rightfully considered the main trend not only in 2022 but also in subsequent years. The emergence of new exchange-traded funds ( ETFs ) based on digital assets and the development of WebFree can also be attributed to developing areas.
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Investing in Crypto: Things to Do in a Crypto Winter

Investing in Crypto: Things to Do in a Crypto Winter

June Katz 14 min read
The first crypto winter was registered in 2014–2015 and lasted 427 days. At that time, the bitcoin exchange rate decreased by 87%, which negatively affected altcoin quotes. The situation was repeated in 2017–2018, when the growth of the bitcoin exchange rate, which began in the fall, was replaced by a sharp decline — from 20 thousand dollars per coin to 8 thousand, or even less. For several months now, experts have been speculating about the possible onset of crypto winter. New assumptions appeared almost every week, and the deadlines were constantly pushed back. It looks like it happened after all. However, the market is cyclical — a period of growth is always followed by a fall and vice versa. Any downturn creates enrichment opportunities, so in this article, we will look at the topic of investing in cryptocurrency. I will point out that we are not giving financial advice — we’re just collecting information about the main investment strategies, the main market participants, and patterns that may be useful. Crypto Investment Strategies There are different approaches to making money on investments in digital assets. We offer you to get acquainted with the three most popular strategies. Hodl Hodl is a popular term in the crypto community , which network users employ to denote the purchase of cryptocurrency for its long–term retention. Working under this scheme implies earning on the growth of the asset rate for a long time. For example, investors who purchased 1 bitcoin 6 years ago, as of the time of writing, were able to increase their investments by 17547%. Scalping The term scalping usually means income from short-term changes in the exchange rate of an asset. Most often, the influence of news on the digital asset market is used to make money using the scheme. Here's how it can work: An investor saw that a couple of minutes ago, Tesla published a report stating that the organization invested a large amount in bitcoin. It can be assumed that the news will positively affect the behavior of the cryptocurrency exchange rate. To make money on the market reaction, the investor buys bitcoin. At the moment when the cryptocurrency exchange rate starts to rise, the investor gets the opportunity to sell the asset at a higher price. The difference in the cost of buying and selling will become his profit. Also, for scalping, you can use technical analysis of the behavior of the asset rate according to the schedule. Averaging The essence of the strategy is to purchase an asset for an extended time on a certain day of the week/month (or with other frequency), regardless of the current position of the cryptocurrency. Market participants who choose this strategy believe that this approach allows them to earn money by averaging risks. Staking This term refers to the intentional retention of assets in the account, to organize a source of passive income. In the staking market, you can find offers with high profitability. One of them is available on the ROY Club platform. Within the walls of the site, up to 40% of new coins can be generated monthly on the UMI cryptocurrency staking. At the same time, you can start earning in a few minutes after registering in the system. All the steps that you need to go through to start earning are accompanied by detailed instructions. If necessary, the user will be able to get advice on working in a dialog box on the site. How to Increase the Efficiency of Investments in Cryptocurrency Many investors have their secrets to improving the efficiency of investments in cryptocurrency. Among them, there are several universal tips. Here are some of them: Investments should be diversified. A distributed portfolio of assets reduces the likelihood of losing all investments due to a sudden drop in the exchange rate of one cryptocurrency. There is no need to buy digital assets with the last money. The market can be unpredictable. It is worth investing only what you can afford to lose. Investments need to be planned. It is worth determining in advance how much you are willing to invest in cryptocurrency. Also, experienced market participants are advised to keep records and record all their operations in the market, so that, if necessary, they have information at hand to analyze the effectiveness of solutions. There are different investment strategies for users who want to make money on the movement of the cryptocurrency exchange rate. For those who are not in a hurry, the hodl scheme is suitable. Users who are ready for increased risk for the sake of instant earnings should pay attention to scalping. Those who want to combine the high profitability of different strategies with the security of investments may be interested in staking. Ways to Analyze Digital Assets Technical Analysis Technical analysis is based on historical market data because history develops in a circle and repeats itself. It includes an overview of past pricing trends. Technical analysis aims to identify recurring patterns and make calculated forecasts for the growth or decline of trends. The main assumption here is that prices are not random and they can be foreseen if you look into the past. Although technical analysis performed correctly can be quite useful and effective, it does not always work. In most cases, the success of technical analytics depends on the person conducting the research. That's why some people prefer fundamental analysis of crypto. Fundamental Analysis Fundamental analysis aims to cover a somewhat broader picture compared to technical analysis. It takes into account both qualitative and quantitative factors that can affect the value to understand whether an asset is overvalued or undervalued compared to its current market price. Since there are no public financial statements that can be verified on the cryptocurrency market, it is more difficult to do this type of analysis, especially for beginners. It is necessary to take into account the volume of transactions, user activity, the unique functions of the cryptocurrency, and even some global economic events that can significantly affect the cryptocurrency market. It is better for a beginner to learn how to use both methods. Understanding cryptocurrency fundamentals will help you make smarter decisions, plan your strategy both in the short and long term, and ultimately become a better investor. Choosing the Best Crypto to Invest In Polygon ( MATIC ) This is a level 2 cryptocurrency for Ethereum decentralized application platforms. Polygon is a promising blockchain ecosystem designed to develop infrastructure and help scale the Ethereum network. The Matic Network and the Polygon token also offered a second-level solution — transferring transactions directly on the Ethereum network to another coin platform. This allowed the Matic network to reach a speed of 7,200 transactions per second (TPS). For comparison, the throughput of Ethereum does not exceed 15 transactions per second. In 2021, the network was rebranded — it became known as Polygon. But in addition to the new name, it also has new functions. Now it is a platform for creating interconnected blockchain networks. In other words, with the help of Polygon, everyone can write their blockchain for any purpose. In the future, Polygon will become the basis of web3 networks. Loopring ( LRC ) A promising cryptocurrency of the decentralized exchange of the same name. To make DEX more scalable and reduce the commission, ZK accumulative packages are used. Loopring gives DEX the ability to choose between storing transactions on-chain or off-chain at any given time. This on-chain data availability (OCDA) combined with ring miners and order rings provides greater scalability of DEX. Loopring offline storage provides 16,400 transactions per second (TPS). Chainlink ( LINK ) It is the digital currency of the decentralized Oracle programming network. The goal of Chainlink is to solve the problem of securely connecting smart contracts to real events. Smart contracts are code fragments that embody a given business logic (for example, when to pay interest on loans). Ripple ( XRP ) This promising cryptocurrency project from San Francisco has become a truly global crypto intermediary (bridge currency) used in cross-border settlements. We are talking about multibillion-dollar transactions mainly between financial institutions, corporations, banks, and payment systems of all countries of the world ("payment corridors"). The second advantage of XRP is the phenomenal speed of financial transactions conducted in the Ripple ecosystem. It is more than 10 thousand operations per second (in particular, in Ripple Net the hash rate is at least 50,000 TPS). Cardano ( ADA ) It is a fully decentralized platform operating on the principle of open source. The distinctive features of Cardano are complete anonymity, the absence of restrictions, and other complicating circumstances such as KYC . It was created in 2017 and became one of the first ecosystems operating on the PoS (Proof-of-stake — "proof of ownership") network protocol. It is actively used in the architectonics of smart contracts and Dapps. The recommended investment horizon is from one year. Stellar ( XLM ) This is a promising cryptocurrency that is used in various systems — from gaming platforms to online stores. It was created in 2014. The main feature is the unification of various ecosystems and blockchains. Stellar is a universal medium of exchange with minimal fees for financial transactions. The cooperation of the platform with IBM and MoneyGram International. Criteria for Selecting Promising Blockchain Projects In 2009, Bitcoin was the only cryptocurrency on the market. Today, the number of digital tokens has exceeded 1000. In such an assortment, it is easy to get lost even for experienced investors, not to mention beginners. When choosing the optimal cryptocurrency for long-term investment or earning on exchange rate fluctuations, we were guided by the following criteria: The fame of the project and its reputation; Capitalization size; The number of exchanges on which the selected cryptocurrency is traded; The number of coins in circulation; The volatility of the exchange rate and the dynamics of quotations; Technical data of the network; Social activity. Cryptocurrencies that are actively discussed on forums and in chat rooms have more prospects for growth. Conclusions It is quite possible to be friends with the risks that the volatility of digital assets carries. By carefully monitoring and analyzing all small price movements, experienced traders have learned to extract income from them by buying and selling coins at the right moment. Such a flair comes with practice, but at the same time, it is backed up by knowledge — studying trading tools, helps not only not to go into negative territory, but also to make a profit. Is crypto a good investment? The cryptocurrency market is volatile and unpredictable, and many experts do not recommend it for long-term investment. But bitcoin has been around for more than 10 years — and this is much longer than the same experts predicted. And although we are seeing periodic ups and downs, in the long term, the crypto market is still expected to grow consistently.
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What Is a DAO And How Does It Work?

What Is a DAO And How Does It Work?

Ruth Kise 12 min read
Until recently, the concept of blockchain was only known in the context of cryptocurrencies, but today this technology is actively used in business. What's more, the new acronym DAO is entering the mainstream. So the "untraditional" business model appears along with JSC and attracts the attention of business enthusiasts more and more. DAO Definition and Key Features DAO (decentralized autonomous organization) is a company that is based on blockchain technology, managed using smart contacts. It does not have owners in the traditional sense, as well as controlling and governing bodies like the board of directors. In other words, decentralized autonomous organizations lack a hierarchical structure, and all participants in the ecosystem have the same rights and can vote for changes in the protocol on an equal basis with other participants. Main features of DAO: In contrast to JSC, the «command and control» structure in formal union of groups of people is not applicable in this case. There are no executive boards and the company is managed by the community by voting on any relevant matter relating to the activities of the organization; Instead of traditional hiring, a person receives a smart contract based on the project. After that, the members of the community discuss the offer and vote. After its adoption, the work of the executive begins directly; Quitting is also becoming a consensual issue. So, if a person does not cope with the tasks set for him, token owners who voted to hire him can withdraw their votes, leaving the employee "overboard." Thus, possible conflicts are excluded in the DAO due to lobbying for the interests of certain persons; Agility and flexibility to innovate. This is due to the fact that companies are organized not around people, but around values​ and smart contracts . In a peer-to-peer system, much faster. In a "flat" organization, the community can rally faster and "fund" the best and most promising idea. As noted above, decisions are made by vote; Absence of meetings and colleagues in the traditional sense. DAO organizational policy Note that DAO is also characterized by the presence of internal company policies, but it has a number of differences. In classic business, in particular, management determines the actions of the entire organization. In the case of DAO, the value is the main factor on which all efforts will be focused. Therefore, every community member, who decides the future of the compound protocol, is motivated to bring the maximum benefit without looking back at the leader’s wishes. Since the DAO model does not involve a centralized hierarchy, it relies on alternative approaches, such as token-based memberships. Typically, such governance tokens can be freely purchased and filed on decentralized exchanges , or earned by providing liquidity or computing power for mining or staking. In any case, by holding governance tokens, you become a kind of shareholder and gain access to voting, which determines the organization's development strategy. Managing the DAO: What Are Governance Tokens? Governance token — a token that allows its owner to take part in the management of an organization. Thanks to governance tokens, users can propose, discuss and make changes to the project, and they do not need to rely on the project team or require its participation. "DAO is an organization that can operate on its own, using code, without anyone's responsibility for decision-making," explains blockchain enthusiast Travis Miller. "Imagine a corporation without a CEO." In addition, participants can use tokens to delegate voting rights to other users and monitor the distribution of funds allocated to support the project. DAO in Crypto: Examples The first thing you should note is that the meaning of the DAO economy is to attract users to actively manage and develop the ecosystem of a particular platform. As a rule, users who participate in voting can receive a reward. Thanks to Ethereum , the built on smart contracts infrastructure of DAO has appeared in the crypto industry. There are few examples of DAO including Maker, Compound, Forth ( Ampleforth ). DAO Maker DAO Maker — is a decentralized platform based on Ethereum. It was the first who made it possible to create DAI stablecoins , and various other cryptocurrency assets are accepted as collateral. One of the main features of the DAO Maker platform is that the DAI stablecoin is always equal to US $ 1 per 1 DAI unit.  Since this is DAO on the platform uses governance tokens — MKR , a million of which were distributed between the first users of the platform. In the DAO Maker ecosystem, MKR tokens are used as the "fuel" of the entire system, just as gas is used in Ethereum. As soon as the commission is paid, the received MKR tokens are destroyed (burned). New MKR tokens are released as needed, so the system is constantly in a certain balance. Compound Another of the largest credit protocols in the DeFi. In addition to interest on issued loans secured by cryptocurrency, it charges creditors COMP tokens to motivate the community to issue more crypto loans. COMP tokens allow their owners to make decisions about changes to the Compound protocol. When the user enters tokens into the Compound pool, in return he receives cTokens. These cTokens represent the depositor's share of the pool and can be used at any time to redeem the underlying cryptocurrency originally deposited in the pool. For example, when deposited in an ETH pool, in return you will receive a cETH. Over time, the exchange rate of cTokens of the underlying asset increases, which means that you can exchange them for a larger amount of the underlying asset than you originally invested — this is how the interest distribution occurs. Ampleforth This is an Ethereum-based cryptocurrency with an algorithmically regulated number of tokens in the circulating offering. It is intended for use as the base currency of the new decentralized economy and is an asset that is not subject to demand inflation and remains independent of the price movement of other cryptocurrencies, in particular bitcoin ( BTC ). Besides AMPL the platform has governance tokens FORTH . Ampleforth has a 6-step protocol change process. When the proposal successfully passes the first five stages, the FORTH holders vote for the proposed change. If a majority is reached during voting, then the change is automatically made to the protocol. DAO Pros and Cons Pros: There is no hierarchical ladder, so a separate group or control center cannot make decisions that ignore the interests of the rest of the participants. Decentralized management system. With this approach, the actual power passes into the hands of only those persons who are really interested in this and are ready to develop the project. All rules, requirements and conditions for working with the DAO platform are known in advance and can only be changed with the approval of most owners of control tokens. As a result, only really useful offers "pass." All transaction records are publicly available, eliminating asset fraud. Cons: Slow response to threats. If something atypical happens, you need to vote among all governance token holders to solve the problem. At the same time, the decision must first be prepared by someone, which also requires certain costs. As a result, the reaction is very slow, which threatens potential problems. The development also requires a vote. Moreover, you need not only to offer a further way of development, but also to find an executor who will be ready to do the work. It slows down the development of the DAO platform. Despite the high potential of blockchain in managing systems, it hides many risks associated with protocol security. And history knows the hard chapter with the first DAO case in 2016, when the platform was hacked . But it connected with the organization of decentralized and open platforms. Anyway DAO attracts a lot of enthusiasts from different business areas, and has been already realized in such spheres as art, culture, gaming, automatizing and so on.
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What Are Stablecoins — And How You Could Use Them

What Are Stablecoins — And How You Could Use Them

June Katz 6 min read
The cryptocurrency market is growing rapidly. The turnover on the exchanges is trillions of dollars. The value of individual digital assets exceeds the value of large companies. Investor interest is increasing. However, the risks remain. One tool for reducing risks is the so-called stablecoins. Their main strength is the same as that of recognized fiat currencies, — relative stability. It is possible to make predictable calculations using them. The most popular stablecoins are: USD Tether ( USDT ) Binance BUSD (BUSD) True USD ( TUSD ) Paxos Standard ( PAX ) USD Coin ( USDC ) Now there are several types of stablecoins, the most common of which group them by the type of the underlying asset, i.e. the asset to which the cryptocurrency is linked: to fiat money, for example, USDT (Tether, pegged to the dollar) and bitCNY (to the yuan); to goods traded on the stock exchange, for example, precious metals and gas or it could be even crypto-backed stablecoins. What are stablecoins used for? Stablecoins are most often used to fix profits, and to preserve the balance from drawdowns during jumps in the value of the main trading cryptocurrency. Large investors sometimes transfer their profits "overnight" to a stablecoin to continue trading without losses in the morning. In addition to the protective function, this type of digital currency is used for: Everyday transactions Optimized recurrent payments and transfers from card to card Cheap international transfers, for example, for foreign workers Guarding against hyperinflation of the local currency Increasing the speed and quality of cryptocurrency exchanges to reduce dependence on bitcoin . On some exchanges, it is already faster and cheaper to trade through a stablecoin. And it takes time and additional checks to enter fiat money into the system. Also, this type of digital asset allows you to diversify risks: while the price of bitcoin is changing a lot, you can store funds practically in euros or dollars. The presence of stablecoins ensures the trust and acceptance of cryptocurrencies in general. Institutional investors use stablecoins, increasing the turnover of the industry as a whole, and increasing profitability for smaller investors. Plus, the more trust in cryptocurrencies, the easier it is to use them in the real world when buying goods /services. So, which stablecoin will suit you the most depends primarily on your goals. Often people who need to transfer money from one state to another in a quick transit (in a day or two), use Tether (USDT) because it has the best liquidity. The main thing here is not to keep large amounts of money in it for a longer time. For the longer-term storage of a backup crypto cushion for a rainy day, it might be a good choice to collect a diversified portfolio from USDC, BUSD, and DAI . Terra USD ( UST ) is not a reliable stablecoin for storage. It makes sense to go to it only if you are going to make money on staking. Challenges and risks of stablecoins Despite all the advantages, stablecoins have several risks to be reckoned with. Firstly, not all of them are stable enough, despite the name – new projects appear, but do not always survive. It is reasonable to use well-established stablecoins and gradually diversify into others. Secondly, by linking to other assets, they receive the following risks — the collapse of guaranteeing currency (if linked to it) and legal restrictions: linking to fiat currencies increases not only trust but also the number of requirements for mandatory execution. For example, Facebook decided to launch its cryptocurrency, which is based on different fiat currencies – and got mired in bureaucratic problems. Thirdly, the owner of the stablecoin in most cases is one company with centralized management. In such cases maintaining trust and stability requires constant monitoring, audits, and inspections , as concentrating power in the hands of just a few people makes it easy to abuse . Even the popular Tether at some point (according to rumors) began to offer a larger volume of cryptocurrency than there were real assets. An investigation by the US Department of Justice has begun. To sum up , stablecoins allow payments to be made quickly and at a low cost, which requires effective financial, organizational, and technical conditions. However, in the absence of a proper regulatory system, various risks may appear, which may cause undesirable consequences.
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The State of Play-to-Earn Crypto Games in 2022: Metaverse NFT’s

The State of Play-to-Earn Crypto Games in 2022: Metaverse NFT’s

Ruth Kise 6 min read
The concept of the virtual world is hardly new. Online and offline games with their infinite worlds are its dramatic confirmation. However, the metaverse is bursting in popularity today. Why? Blockchain mainstreaming and... cryptocurrency! The idea of ​a virtual world existence cannot be without the presence of virtual currency in it. Because, as in reality, any participant wants to have value, identity, and so on. This means, there is the popularity of the NFTs . NFT — non-fungible tokens , they can represent ownership of practically anything, video, art, sports, virtual real estate, and even gaming. They cannot be exchanged from one to the other. Hence, each is unique and accrues value independently. By the way, Mark Zuckerberg took up metaverse realization and renamed Facebook to Meta . The company is working on merging digital and physical worlds within a single platform, an ecosystem of blockchain, and has already created VR glasses, for example, for a virtual meeting with friends or colleagues. Your avatar, which will be present there, can be created and owned as NFT. While we are at an early stage in the generalized metaverse development, local virtual worlds are gaining traction — crypto games. They are a blockchain, decentralized, open-source platform with smart contract functionality, whose task is to transform the gaming experience of users by giving players true ownership of their in-game items through the use of NFT. Their gamers can claim, buy, sell, and trade all assets as NFTs and, thereby – earn.  There are different options on which blockchain crypto game is the best, but judging by their rates in 2021 and 2022, there are 3 at the moment. Let's overview these top ones: All are based on the Ethereum blockchain and are partnering with Polygon (fitting Ethereum second-level blockchain) to solve issues around scalability, speed, and transaction costs. All have similar opportunities and exciting worlds that you can create. And if you're going to dive in, you should get any Ethereum compatible wallet to store all your crypto. Still, there are some gaps between these three. Decentraland   • Runs on PC and Mac. There is no mobile version yet, but it’s in progress. • Crypto: MANA ($2.15), LAND. • You can convert your MANA assets from the Ethereum blockchain to Polygon’s Matic Network. • Plenty of games to enjoy. Some need you to pay according to the creator’s design, but lots are free of charge. • The navigation is as usable as it could be. Just move your avatar around a terrain of adjoining games to see your experiences. Sandbox • Runs on PC and Mac, Android and iOS. OS support coming soon. • Crypto: SAND ($2.81). • SAND can be staked on Polygon. • All games are user-created, and anyone can make them for free. Also, you can create assets as NFTs and sell them to other users. If you want to build metaverse experiences, you need to buy the limited LAND resource.   • Both free and paid games where you can earn SAND and use it to enter paid experiences. GALA Games • Runs on PC and Mac. The mobile version isn’t even planned. • Crypto: GALA ($0.2021). • Main position — "Fun first". There are 5 simple to play games in various stages of development, and no need for Blockchain pro to enjoy them. • Free-to-play games with play-to-earn mechanics allow you to unlock real rewards and start making money. Looking at the market cap growth of cryptocurrency of these play-to-earn games is hard to imagine something that could bring down an investment interest in the crypto-economic sector.  Taking on the psychological human desire to escape from external reality, to have fun, and find a better world, where you are a creator, not a ponce, it is difficult to refuse the opportunity to be in a metaverse. And if in addition to creating and entertaining, you can earn money – it is a win-win long-lasting ecosystem.
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How the Crypto Cards Make Lives Easier (With a List of Them)

How the Crypto Cards Make Lives Easier (With a List of Them)

June Katz 2 min read
Spending crypto can be hard in the real life. Thankfully, we're starting to see new products pop up solving that — crypto cards. Today, cryptocurrency users can order and use debit or credit cards to quickly convert crypto assets into fiat currency and buy goods and services online, at points of sale, or to withdraw money from ATMs. Why Use the Crypto Cards But why complicate everything so much and why not just use your regular bank card? The fact is that crypto cards give their users some new features and bonuses. The use of crypto cards can protect you from nasty exchange rates when you're traveling; Some products also offer a virtual card instead of a physical one, making them ideal for online purchases; There's no credit check, so your credit score is not a factor when qualifying for a prepaid debit card; The fewer number of intermediaries, which simplifies and reduces the cost of transactions. Market Offers from Some of the Crypto Market Players  The number of crypto cards presented on the market is constantly increasing. The most popular crypto cards today include: Crypto.com Visa card — 100+ crypto and 20+ fiat currencies. Free to CRO holders. KYC verification is required. Binance Visa card — best card for cashback Coinbase card — no maintenance fees, 4% reward for use in the crypto Gemini credit card — 1–3% crypto rewards which deposit immediately Coinbase credit card — very high safety standards and no maintenance fees Given the fact that PayPal is entering the field of cryptocurrencies, and people’s interest in cryptocurrencies is constantly growing, these products can become much more widespread very soon. Hopefully, this short introduction to the topic will help some of you use your funds more wisely — including those you got through SwapSpace.
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What Is Telcoin and How to Buy It?

What Is Telcoin and How to Buy It?

June Katz 6 min read
What Is Telcoin?  Telcoin (TEL) is an ERC-20 token developed by Telcoin Pte. Ltd., a Singapore-based telecom-focused team of developers. The project aims to integrate blockchain technology with worldwide mobile networks: Telcoin has a goal of bringing instant international money transfers to all mobile phone users. The company initially released the TEL token itself and the Telcoin Wallet app. Nowadays, the Telcoin platform includes TEL token, Telcoin app, TELx Network which provides liquidity for the Telcoin users, and a settlement layer — an Ethereum sidechain called Rivendell.  The Telcoin app can be downloaded off of the App Store or through Google Play. The app allows users to transfer TEL to third parties without paying the commission fees normally associated with global money transfers. The Telcoin app allows the user to secure, store, and trade digital assets and send and receive fiat remittances in 16 countries. How Does Telcoin Work? Since Telcoin’s launch in 2017, the project has garnered a lot of attention for its ambitious plan to merge the telecom industry with blockchain technology. Telcoin is all about making money transfers easier and smarter — both in peer-to-peer transactions to individuals’ phone numbers and while interacting with e-commerce stores.Telcoin is working closely with major mobile networks in areas of the world where getting access to traditional financial institutions is a hassle. This partnership benefits disadvantaged populations by providing access to previously unavailable financial services with the only requirement for participation being a working smartphone with a phone plan.The project utilizes an API that helps promote network interaction and cooperation. Operators and networks can integrate with Telcoin via this API; this, in turn, qualifies them to receive constant TEL issuance. Networks that receive more traffic and have a higher integration maturity will earn more TEL as a reward.In addition to the company’s official wallet, Telcoin can be integrated with existing mobile wallets. Payments transferred through partnered mobile wallets are free with the only fees being the ones from converting TEL into other cryptocurrencies and converting those cryptos into fiat. Free in-app operations with conversion supported by local telecom companies will undoubtedly help both consumers and business owners looking for ways to cut down on extra costs.The project’s end goal is to facilitate the overall unbanking of the world by providing an alternative to traditional money transfer platforms via cheap remittance, payments, credit, and other perks that can be achieved through blockchain technology. Telcoin Benefits and Drawbacks Pros:  Worldwide accessibility. Telcoin partners with many mobile operators and all the major electronic wallets as an ERC20 token, which allows the project to reach an unprecedentedly large community of users. Cost-effectiveness. As per the most recent research, global remittance fees average at around 7%, while Telcoin is targeting an average cost of less than 2% of every transaction, and only 0.5% commissions for a remittance. Experienced team of developers. The staff behind Telcoin boasts an experience of over 10 years in both blockchain and telecommunication. Cons: Might be unprofitable as an investment . As of June 2022, TEL ranks 181 in the list of cryptocurrencies. Its price has usually been lingering below $0.035, except for a brief spike during the insanely bullish crypto market in mid-2021. Not backed. Telcoin is not backed by any physical commodity or fiat currency. Telcoin Future During a crypto winter, such as the one that’s going on now, in mid-2022, the future can seem kind of bleak across the market. TEL is not the exception, with the Telcoin price falling to ~$0.0014 in June. However, its rate of loss of value has stabilized in 2022: on average, 30-day price change doesn’t exceed this of such giants as Bitcoin and Ethereum . Besides, the platform is being actively developed, which promises great future: for example, one of the latest Telcoin news is a new TELx liquidity mining policy, which attracts users to the platform.  How and Where to Buy Telcoin? As of today, TEL tokens can only be bought in exchange for other cryptos. If you want to buy it for cash, you’ll need to buy BTC or ETH first.  Coinbase – the most prominent place to buy Telcoin Latoken – a reliable exchange to get some TEL tokens KuCoin – one more well-established crypto exchange to buy Telcoin Uniswap – DEX providing Telcoin buying options Balancer – buy Telcoin on DEX If you prefer to buy Telcoin for crypto, we would recommend going for instant exchanges. Here’s how you can get your hands on some TEL tokens: Go online to find an exchange or a crypto exchange aggregator – these allow users to analyze the real-time costs of crypto on multiple exchanges at the same time in order to find the best bargain possible. SwapSpace works best: these list TEL against most other crypto coins. Compare exchange rates and swap any crypto in your inventory for TEL. The Telcoin whitepaper also proposes that soon consumers will also have the option of buying TEL directly from their mobile operators by using their account credit or wallet holding. How to Store Telcoin? TEL is an ERC-20 token and can be stored on any wallet that supports the protocol. The best Telcoin wallets include: The official Telcoin App . MyEtherWallet , available as a browser extension or as a downloadable app. MetaMask , an in-browser wallet. Ledger , a highly-trusted hardware wallet. Trezor , another secure physical wallet perfect for storing ERC-20 tokens . Conclusion The international remittance market dominated by large players like Western Union has been long due for a revolution. The integration of mobile technologies and blockchain could very well provide a solution to the drawbacks these big players experience, including slow transaction rates and uncomfortably-high fees. The need for cheap and fast global transactions will only increase over time. Telcoin’s attempt at pioneering an untapped market has the potential to yield outstanding results. On the other hand, the project’s entire business model is highly dependent on the cooperation of major phone operators’ willingness to integrate Telcoin’s technology into their own. Most analysts view TEL as a high-risk high-reward investment with the potential to either blow up in the market or entirely fizzle out over time.
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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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