tag:blogger.com,1999:blog-50431667761662760092024-03-12T20:44:29.840-07:00Guide to Get Free BitcoinLearn about bitcoin and altcoins.
Guide to earn free bitcoin and altcoinsJorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.comBlogger71125tag:blogger.com,1999:blog-5043166776166276009.post-46256582241122691922023-09-10T18:43:00.005-07:002023-09-10T18:43:37.831-07:00What other cryptocurrencies for long-term investment?<p>1. Ethereum (ETH): Often referred to as the "king of smart contracts," Ethereum has a well-established ecosystem of decentralized applications (DApps) and is a driving force behind the DeFi (Decentralized Finance) and NFT (Non-Fungible Token) markets. With the Ethereum 2.0 upgrade underway to improve scalability and sustainability, it remains a strong contender for long-term growth.</p><p>2. Cardano (ADA): Cardano is known for its focus on scalability, sustainability, and interoperability. It employs a research-driven approach to development and has a strong academic background. The Cardano network has seen steady growth and is expected to play a significant role in the future of blockchain technology.</p><p>3. Polkadot (DOT): Polkadot is a multi-chain network that facilitates communication between different blockchains. Its unique approach to interoperability and its ability to support a wide range of use cases make it an intriguing long-term investment option. Keep an eye on projects building on the Polkadot ecosystem.</p><p>4. Solana (SOL): Solana has gained significant attention due to its high-speed and low-cost transactions. It's become a popular platform for DeFi and NFT projects. Its robust technology and growing ecosystem make it a potential contender for the long haul.</p><p>5. Chainlink (LINK): Chainlink specializes in decentralized oracles, enabling smart contracts to interact with real-world data. As smart contracts continue to evolve, Chainlink's role in bridging the gap between blockchain and real-world applications could become increasingly important.</p><p>6. Binance Coin (BNB): Binance Coin is associated with one of the largest cryptocurrency exchanges globally, Binance. It offers various use cases, including reduced trading fees on the platform and participation in token sales. Binance's continued expansion and innovation could positively impact BNB's value.</p><p>7. Tezos (XTZ): Tezos is known for its self-amending blockchain, which allows for protocol upgrades without hard forks. Its governance model empowers token holders to participate in decision-making, making it an intriguing option for long-term holders.</p><p>8. Cardano (ADA): Cardano is known for its focus on scalability, sustainability, and interoperability. It employs a research-driven approach to development and has a strong academic background. The Cardano network has seen steady growth and is expected to play a significant role in the future of blockchain technology.</p><p>9. Polkadot (DOT): Polkadot is a multi-chain network that facilitates communication between different blockchains. Its unique approach to interoperability and its ability to support a wide range of use cases make it an intriguing long-term investment option. Keep an eye on projects building on the Polkadot ecosystem.</p><p>10. Solana (SOL): Solana has gained significant attention due to its high-speed and low-cost transactions. It's become a popular platform for DeFi and NFT projects. Its robust technology and growing ecosystem make it a potential contender for the long haul.</p><p><br /></p><p>Remember, the cryptocurrency market is highly volatile, and it's essential to do your research and consider your risk tolerance before investing in any asset. Diversify your portfolio, and consider consulting with a financial advisor if you're unsure about your investment choices.</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-54009105025235359432023-07-24T18:16:00.006-07:002023-07-24T18:16:53.182-07:00 The Advantages of Using a Bitcoin Debit Card<p> The Advantages of Using a Bitcoin Debit Card</p><p>I. Introduction to Bitcoin Debit Cards</p><p>Bitcoin debit cards are a revolutionary way to use your cryptocurrency for everyday expenses. Unlike traditional debit cards, these cards are linked to your bitcoin wallet, allowing you to spend your bitcoins at any establishment that accepts card payments. This introduction to bitcoin debit cards will walk you through their benefits and how they work.</p><p><br /></p><p>II. How to Get a Bitcoin Debit Card</p><p>Research and Compare Providers: Start by researching different platforms and services that offer bitcoin debit cards. Compare their fees, features, and supported currencies to find the one that best suits your needs.</p><p><br /></p><p>Sign Up and Verify: Once you've selected a provider, sign up for an account and go through the verification process. This usually involves submitting identification documents to comply with regulations.</p><p><br /></p><p>Fund Your Card: Transfer bitcoins from your wallet to the bitcoin debit card. The card will now hold the equivalent amount in fiat currency, ready for spending.</p><p><br /></p><p>Start Using Your Card: Once your card is funded, you can use it just like any other debit card. Swipe it at stores, use it for online purchases, or withdraw cash from ATMs.</p><p><br /></p><p>III. Benefits of Using a Bitcoin Debit Card</p><p>Instant Conversion: Bitcoin debit cards offer real-time conversion of your bitcoins to fiat currency, allowing you to spend your crypto instantly.</p><p><br /></p><p>Global Acceptance: Bitcoin debit cards are widely accepted, making them a convenient payment option whether you're shopping locally or traveling abroad.</p><p><br /></p><p>Security and Privacy: With a bitcoin debit card, you can keep your actual bitcoin wallet separate, reducing the risk of exposing your entire crypto holdings to potential threats.</p><p><br /></p><p>Lower Fees: Some bitcoin debit cards have lower fees compared to traditional banking services, helping you save on transaction costs.</p><p><br /></p><p>IV. Ensuring Security with a Bitcoin Debit Card</p><p>Keep Private Keys Safe: Ensure your bitcoin wallet's private keys are stored securely and separately from your debit card details.</p><p><br /></p><p>Enable Two-Factor Authentication (2FA): Add an extra layer of security by enabling 2FA on your bitcoin debit card account.</p><p><br /></p><p>Regularly Monitor Transactions: Keep track of your card transactions regularly to detect any unauthorized activity promptly.</p><p><br /></p><p>Use Secure Networks: When making transactions, use secure and trusted networks to reduce the risk of data interception.</p><p><br /></p><p>V. Top Tips for Choosing the Right Bitcoin Debit Card</p><p>Fee Structure: Consider the fee structure, including issuance fees, transaction fees, and ATM withdrawal fees.</p><p><br /></p><p>Supported Currencies: Check if the card supports the currencies you intend to use.</p><p><br /></p><p>Security Measures: Look for features like EMV chip technology, 2FA, and fraud protection.</p><p><br /></p><p>Customer Support: Opt for a provider with responsive customer support in case of any issues.</p><p><br /></p><p>VI. Pros and Cons of Bitcoin Debit Cards</p><p>Pros:</p><p><br /></p><p>Convenience: Easy access to your bitcoin funds for everyday transactions.</p><p>Global Usability: Spend bitcoin anywhere that accepts card payments.</p><p>Security: Reduced risk of exposing your entire bitcoin wallet.</p><p>Financial Freedom: Use your bitcoins without relying on traditional banks.</p><p>Cons:</p><p><br /></p><p>Fees: Some bitcoin debit cards may have higher fees compared to regular debit cards.</p><p>Regulations: Compliance with KYC/AML regulations might be required.</p><p>Exchange Rates: Rates may vary, impacting the value of your bitcoin during conversions.</p><p>With this comprehensive guide, you can now make informed decisions about getting and using a bitcoin debit card for your financial needs. Happy spending!</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-66056788713402873172023-06-14T20:20:00.003-07:002023-06-14T20:20:45.762-07:00 Bitcoin Price: A Comprehensive Guide to Understanding and Predicting Bitcoin's Value<p> Bitcoin Price: A Comprehensive Guide to Understanding and Predicting Bitcoin's Value</p><p>Introduction</p><p>Cryptocurrencies have taken the financial world by storm, and Bitcoin, being the pioneer, has garnered significant attention. One of the key aspects of Bitcoin that captures the interest of investors and enthusiasts is its price volatility. In this article, we will delve into the factors influencing Bitcoin's price, explore its historical trends, and provide insights on predicting its future value.</p><p><br /></p><p>Table of Contents</p><p>Understanding Bitcoin Price Fluctuations</p><p>1.1 Supply and Demand Dynamics</p><p>1.2 Market Sentiment and News</p><p>1.3 Regulatory Environment</p><p>1.4 Technological Advancements</p><p>Historical Analysis of Bitcoin Price</p><p>2.1 Early Years and Price Discovery</p><p>2.2 Bitcoin Halving Events</p><p>2.3 Major Market Corrections</p><p>Factors Affecting Bitcoin's Value</p><p>3.1 Institutional Adoption</p><p>3.2 Global Economic Conditions</p><p>3.3 Security and Hacking Incidents</p><p>3.4 Government Policies and Regulations</p><p>Predicting Bitcoin's Future Price</p><p>4.1 Fundamental Analysis</p><p>4.2 Technical Analysis</p><p>4.3 Sentiment Analysis</p><p>4.4 Expert Opinions and Market Trends</p><p>Conclusion</p><p>FAQs</p><p>1. Understanding Bitcoin Price Fluctuations</p><p>1.1 Supply and Demand Dynamics</p><p>Bitcoin's price is influenced by the basic economic principle of supply and demand. The limited supply of 21 million coins creates scarcity, driving up the price when demand increases. Conversely, if demand decreases, the price may experience a downward trend.</p><p><br /></p><p>1.2 Market Sentiment and News</p><p>Market sentiment plays a crucial role in determining Bitcoin's price. Positive news such as institutional adoption or regulatory clarity can boost investor confidence and drive prices higher. Conversely, negative news like security breaches or bans can lead to a decline in price.</p><p><br /></p><p>1.3 Regulatory Environment</p><p>Government regulations and policies significantly impact the price of Bitcoin. Favorable regulations can attract institutional investors and mainstream adoption, positively impacting the price. Conversely, restrictive regulations can create uncertainty and hinder price growth.</p><p><br /></p><p>1.4 Technological Advancements</p><p>Bitcoin's price is influenced by technological advancements and innovations within the cryptocurrency ecosystem. Upgrades to the underlying blockchain technology, scalability improvements, or the introduction of new features can influence market sentiment and drive price movements.</p><p><br /></p><p>2. Historical Analysis of Bitcoin Price</p><p>2.1 Early Years and Price Discovery</p><p>In its early years, Bitcoin experienced significant price volatility as it gained recognition and adoption. The price started from a few cents per coin and experienced multiple cycles of sharp increases and corrections, ultimately leading to its breakthrough rally in 2017.</p><p><br /></p><p>2.2 Bitcoin Halving Events</p><p>Bitcoin halving events, which occur approximately every four years, have a notable impact on the price. Halving reduces the rate at which new coins are created, increasing scarcity and historically resulting in significant price appreciation in the following months and years.</p><p><br /></p><p>2.3 Major Market Corrections</p><p>Bitcoin's price history includes several major market corrections, often referred to as "crypto winters." These corrections are characterized by substantial price declines, sometimes over 80%, before the market stabilizes and resumes its upward trajectory.</p><p><br /></p><p>3. Factors Affecting Bitcoin's Value</p><p>3.1 Institutional Adoption</p><p>Institutional adoption of Bitcoin has gained traction in recent years. The entry of major financial institutions and corporations into the cryptocurrency space has the potential to significantly impact Bitcoin's price, as it signals wider acceptance and mainstream integration.</p><p><br /></p><p>3.2 Global Economic Conditions</p><p>Bitcoin's price is sensitive to global economic conditions. During times of economic uncertainty or currency devaluation, investors often seek alternative assets like Bitcoin, which can lead to increased demand and price appreciation.</p><p><br /></p><p>3.3 Security and Hacking Incidents</p><p>Security breaches and hacking incidents targeting cryptocurrency exchanges can have a detrimental effect on Bitcoin's price. High-profile incidents erode investor trust and confidence, resulting in short-term price declines.</p><p><br /></p><p>3.4 Government Policies and Regulations</p><p>Government policies and regulations regarding cryptocurrencies can have both positive and negative effects on Bitcoin's value. Clarity and favorable regulations can foster a conducive environment for growth, while restrictive measures can hinder adoption and negatively impact the price.</p><p><br /></p><p>4. Predicting Bitcoin's Future Price</p><p>4.1 Fundamental Analysis</p><p>Fundamental analysis involves evaluating Bitcoin's intrinsic value based on factors such as network activity, transaction volume, and development progress. By analyzing these fundamental indicators, experts attempt to forecast future price movements.</p><p><br /></p><p>4.2 Technical Analysis</p><p>Technical analysis involves studying past price patterns and market trends to identify potential future price levels. Traders use various tools and indicators to analyze charts and make predictions based on historical price data.</p><p><br /></p><p>4.3 Sentiment Analysis</p><p>Sentiment analysis gauges the overall market sentiment towards Bitcoin by monitoring social media, news sentiment, and community discussions. Positive sentiment can be an indicator of potential price increases, while negative sentiment can signal a downward trend.</p><p><br /></p><p>4.4 Expert Opinions and Market Trends</p><p>Expert opinions and market trends can provide valuable insights into Bitcoin's future price. Following reputable analysts, industry leaders, and staying updated with market trends can help investors make informed decisions regarding Bitcoin investments.</p><p><br /></p><p>5. Conclusion</p><p>Bitcoin's price is influenced by a complex interplay of factors, including supply and demand dynamics, market sentiment, regulatory environment, and technological advancements. Understanding Bitcoin's historical price trends and the factors affecting its value can provide investors with a comprehensive framework for predicting its future price movements.</p><p><br /></p><p>FAQs</p><p>Q1: Is Bitcoin's price highly volatile?</p><p>Yes, Bitcoin's price is known for its volatility, which can present both opportunities and risks for investors.</p><p><br /></p><p>Q2: Can regulatory decisions impact Bitcoin's price?</p><p>Absolutely. Regulatory decisions and policies can significantly affect Bitcoin's price, as they can shape the market's perception and acceptance of the cryptocurrency.</p><p><br /></p><p>Q3: How often do Bitcoin halving events occur?</p><p>Bitcoin halving events occur approximately every four years and are designed to reduce the rate at which new coins are generated.</p><p><br /></p><p>Q4: Should I rely solely on technical analysis for predicting Bitcoin's price?</p><p>While technical analysis provides valuable insights, it's important to consider a combination of fundamental analysis, market sentiment, and expert opinions for a well-rounded prediction.</p><p><br /></p><p>Q5: Where can I buy Bitcoin?</p><p>You can buy Bitcoin from various cryptocurrency exchanges and online platforms. Make sure to choose a reputable and secure platform for your transactions.</p><p><br /></p><p>In conclusion, understanding the factors influencing Bitcoin's price and utilizing various analysis techniques can assist investors in making informed decisions. As the cryptocurrency landscape continues to evolve, staying updated with market trends and developments will be crucial for predicting Bitcoin's future value.</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com13tag:blogger.com,1999:blog-5043166776166276009.post-86360769358936191992023-06-11T20:35:00.003-07:002023-06-11T20:35:19.359-07:00 Free Bitcoin: Separating Fact from Fiction<p><b> Free Bitcoin: Separating Fact from Fiction</b></p><p><br /></p><p>In the world of cryptocurrencies, the idea of obtaining free Bitcoin is often met with excitement and curiosity. However, it's essential to approach the concept of "free Bitcoin" with caution and skepticism. In this article, we will explore the reality behind free Bitcoin offers, the potential risks involved, and legitimate ways to earn Bitcoin without falling into the traps of scams or fraudulent schemes. So, let's delve into the world of free Bitcoin and separate fact from fiction!</p><p><br /></p><p><u>Understanding the Reality</u></p><p><br /></p><p>While it's true that Bitcoin can be acquired through various means, such as mining or purchasing it from exchanges, the notion of completely free Bitcoin is misleading. Bitcoin is a valuable digital asset, and acquiring it usually requires some form of investment, whether it's financial capital, computational power, or time.</p><p><br /></p><p><u>Beware of Scams</u></p><p><br /></p><p>The internet is rife with scams and fraudulent schemes that promise free Bitcoin. These scams often come in the form of websites, apps, or social media posts that claim to give away Bitcoin for free. They may ask for personal information, require you to complete surveys or captchas, or even request an initial deposit or payment. It's crucial to be extremely cautious and exercise due diligence when encountering such offers.</p><p><br /></p><p>Remember, if something sounds too good to be true, it probably is. Legitimate sources of Bitcoin will rarely offer it for free without any effort or investment on your part. Always research and verify the authenticity and reputation of any platform or individual making such promises.</p><p><br /></p><p><u>Legitimate Ways to Earn Bitcoin</u></p><p><br /></p><p>While free Bitcoin offers may be scarce or unreliable, there are legitimate ways to earn Bitcoin through various activities. Here are a few options to consider:</p><p><br /></p><p>Bitcoin Faucets: Bitcoin faucets are websites or apps that reward users with small amounts of Bitcoin for completing simple tasks, such as viewing ads or solving captchas. While the rewards are modest, they provide an opportunity to accumulate small amounts of Bitcoin over time.</p><p><br /></p><p>Microtask Platforms: Certain platforms connect users with tasks that require human intelligence, such as data labeling or content moderation. These platforms often pay in Bitcoin for completing these microtasks. Examples include Amazon Mechanical Turk and platforms like Microworkers.</p><p><br /></p><p>Freelancing: If you possess specific skills, freelancing platforms can be a way to earn Bitcoin. Many freelancing websites have integrated cryptocurrency payment options, allowing you to offer your services in exchange for Bitcoin.</p><p><br /></p><p>Crypto Cashback Programs: Some platforms and websites offer cashback in the form of Bitcoin when you make purchases through their referral links or specific partner merchants. These programs allow you to earn Bitcoin indirectly while engaging in your regular online shopping activities.</p><p><br /></p><p>Crypto Mining: Mining Bitcoin can be a way to earn Bitcoin, but it requires specialized hardware and significant computational power. It's important to note that mining Bitcoin has become increasingly competitive and resource-intensive, making it more challenging for individual miners to profit.</p><p><br /></p><p><u>Security Considerations</u></p><p><br /></p><p>When engaging in activities to earn Bitcoin, it's crucial to prioritize security. Here are a few key security considerations:</p><p><br /></p><p>Use reputable platforms and services with positive reviews and a solid track record.</p><p>Implement strong security practices, such as using unique passwords, enabling two-factor authentication, and keeping your devices and software up to date.</p><p>Be cautious when providing personal information online and avoid platforms that ask for excessive or unnecessary details.</p><p>Be aware of phishing attempts and never share your private keys or sensitive information with anyone.</p><p><u>Conclusion</u></p><p><br /></p><p>While the idea of free Bitcoin may be enticing, it's important to approach it with caution and skepticism. Many offers promising free Bitcoin are scams or fraudulent schemes designed to exploit unsuspecting individuals. Legitimate ways to earn Bitcoin often require effort, skills, or investment. By conducting thorough research, being mindful</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-30438053717641896742023-06-11T20:33:00.009-07:002023-06-11T20:33:36.724-07:00 Bitcoin Halving: Understanding the Phenomenon That Impacts the Cryptocurrency<p><b> Bitcoin Halving: Understanding the Phenomenon That Impacts the Cryptocurrency</b></p><p><br /></p><p>Bitcoin halving is a significant event in the world of cryptocurrencies that has a profound impact on the supply and value of Bitcoin. In this article, we will explore what Bitcoin halving is, why it occurs, and its implications for investors and the broader cryptocurrency market. So, let's dive in and unravel the mysteries of Bitcoin halving!</p><p><br /></p><p><u>What is Bitcoin Halving?</u></p><p><br /></p><p>Bitcoin halving is an event that occurs approximately every four years, or after every 210,000 blocks mined, as part of the Bitcoin protocol. During this event, the rewards for Bitcoin miners are cut in half. Initially, when Bitcoin was introduced in 2009, miners received a reward of 50 Bitcoins for each block successfully mined. The first halving event occurred in 2012, reducing the reward to 25 Bitcoins. Subsequent halvings took place in 2016, reducing the reward to 12.5 Bitcoins, and in 2020, reducing it further to 6.25 Bitcoins.</p><p><br /></p><p><u>Why Does Bitcoin Halving Occur?</u></p><p><br /></p><p>Bitcoin halving is a mechanism designed to control the supply of Bitcoin and introduce scarcity into the system. By reducing the rewards for miners, it slows down the rate at which new Bitcoins are created. This controlled issuance aligns with the original vision of Bitcoin's creator, Satoshi Nakamoto, to limit the total supply of Bitcoin to 21 million coins. With each halving, the rate of new Bitcoin creation decreases, leading to a gradual reduction in the supply of new Bitcoins entering the market.</p><p><br /></p><p><u>Implications for Bitcoin Investors</u></p><p><br /></p><p>Bitcoin halving has several implications for investors. Firstly, the reduction in mining rewards can affect the profitability of Bitcoin mining operations. Miners need to adjust their strategies and factor in the reduced rewards when considering the costs of mining equipment and electricity. This adjustment can impact the overall hash rate of the Bitcoin network.</p><p><br /></p><p>Secondly, historically, Bitcoin halving events have been associated with significant price increases. The reduction in new supply coupled with growing demand has often resulted in a surge in Bitcoin's price. However, it's important to note that past performance does not guarantee future results, and the cryptocurrency market is highly volatile.</p><p><br /></p><p>Thirdly, Bitcoin halving can create an atmosphere of anticipation and speculation in the cryptocurrency community. Traders and investors closely monitor the halving events, and market sentiments can play a role in short-term price fluctuations. It is essential for investors to exercise caution, conduct thorough research, and make informed decisions based on their risk tolerance and investment goals.</p><p><br /></p><p><u>Broader Implications for the Cryptocurrency Market</u></p><p><br /></p><p>Bitcoin halving also has broader implications for the cryptocurrency market as a whole. The reduced issuance of new Bitcoins can increase the scarcity value of the digital currency, potentially driving up demand. Additionally, Bitcoin halving events often attract media attention and bring cryptocurrencies into the spotlight, raising awareness and fueling interest in the broader market.</p><p><br /></p><p>Furthermore, Bitcoin's influence as the largest and most well-known cryptocurrency means that its halving events can impact the sentiment and behavior of other cryptocurrencies. Market movements and trends in Bitcoin often influence the performance of other digital assets, leading to a cascading effect across the cryptocurrency market.</p><p><br /></p><p><u>Conclusion</u></p><p><br /></p><p>Bitcoin halving is a significant event in the world of cryptocurrencies that impacts the supply, value, and dynamics of the Bitcoin network. With each halving, the mining rewards are reduced, leading to controlled issuance and scarcity. Bitcoin halving events have historically been associated with price increases and generate anticipation and speculation in the cryptocurrency community. As the cryptocurrency market continues to evolve, it's important for investors and enthusiasts to understand the implications of Bitcoin halving and its potential effects on the broader digital asset ecosystem.</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-84932872038382611952023-06-11T20:31:00.000-07:002023-06-11T20:31:02.340-07:00Bitcoin: The Revolutionary Digital Currency<p><b>Bitcoin: The Revolutionary Digital Currency</b></p><p><u>Introduction</u></p><p><br /></p><p>Welcome to the world of Bitcoin, the groundbreaking digital currency that has taken the financial industry by storm. In this article, we will explore the fascinating world of Bitcoin, from its inception to its impact on the global economy. So, let's dive in and discover the wonders of Bitcoin!</p><p><br /></p><p><u>What is Bitcoin?</u></p><p><br /></p><p>Bitcoin is a decentralized digital currency that was introduced in 2009 by an unknown person or group of people using the pseudonym Satoshi Nakamoto. Unlike traditional fiat currencies such as the US dollar or Euro, Bitcoin is not controlled by any central authority like a government or financial institution. Instead, it operates on a peer-to-peer network known as the blockchain.</p><p><br /></p><p><u>The History of Bitcoin</u></p><p><br /></p><p>Bitcoin's journey began with the publication of the Bitcoin whitepaper by Satoshi Nakamoto in 2008. This whitepaper outlined the concept of a peer-to-peer electronic cash system that would revolutionize the way we conduct financial transactions. In January 2009, the Bitcoin network was launched, and the first block, also known as the Genesis Block, was mined. Since then, Bitcoin has gained immense popularity and has gone through several significant milestones, including its meteoric rise in value and widespread adoption.</p><p><br /></p><p><u>How Does Bitcoin Work?</u></p><p><br /></p><p>Bitcoin operates on a decentralized network called the blockchain, which is a public ledger that records all Bitcoin transactions. The blockchain ensures transparency and security by verifying and timestamping each transaction. Bitcoin transactions are carried out using cryptographic techniques, making it virtually impossible to counterfeit or double-spend coins. Miners, who are participants in the network, validate transactions and add them to the blockchain in exchange for rewards.</p><p><br /></p><p><u>The Benefits of Bitcoin</u></p><p><br /></p><p>Bitcoin offers numerous benefits that have attracted both individuals and businesses. Firstly, Bitcoin provides greater financial freedom as it enables borderless transactions without the need for intermediaries like banks. Additionally, Bitcoin transactions are generally faster and more cost-effective compared to traditional banking systems. Bitcoin also offers privacy and security advantages, as users can maintain anonymity while conducting transactions. Furthermore, Bitcoin has proven to be a viable investment option, with its value increasing significantly over the years.</p><p><br /></p><p><u>Investing in Bitcoin</u></p><p><br /></p><p>Investing in Bitcoin has become increasingly popular as more people recognize its potential as a digital asset. Bitcoin's finite supply and growing demand have contributed to its price appreciation over time. However, investing in Bitcoin comes with risks, including price volatility and regulatory uncertainties. It is essential to conduct thorough research and seek professional advice before entering the Bitcoin market.</p><p><br /></p><p><u>Bitcoin Mining</u></p><p><br /></p><p>Bitcoin mining plays a crucial role in the network's operations. Miners utilize specialized hardware to solve complex mathematical problems, which validate transactions and add them to the blockchain. In return, miners are rewarded with newly minted Bitcoins and transaction fees. However, Bitcoin mining has become more competitive over the years, requiring substantial computing power and energy consumption.</p><p><br /></p><p><u>The Future of Bitcoin</u></p><p><br /></p><p>The future of Bitcoin looks promising, with increasing acceptance and adoption worldwide. As more companies and institutions recognize its potential, Bitcoin is gradually integrating into mainstream financial systems. The development of technologies like the Lightning Network aims to address Bitcoin's scalability issues, making it even more efficient for everyday transactions. Additionally, the concept of central bank digital currencies (CBDCs) has sparked interest, further highlighting the potential of cryptocurrencies like Bitcoin.</p><p><br /></p><p><u>Bitcoin's Impact on the Economy</u></p><p><br /></p><p>Bitcoin has had a significant impact on the global economy. Its decentralized nature challenges traditional financial systems, giving individuals more control over their money. Bitcoin has also opened up opportunities for financial inclusion, particularly in regions with limited access to banking services. Furthermore, Bitcoin's underlying technology, blockchain, has implications beyond digital currency and has the potential to revolutionize various industries, such as supply chain management and healthcare.</p><p><br /></p><p><u>Bitcoin and Security</u></p><p><br /></p><p>Bitcoin's security is a topic of utmost importance. While the blockchain technology that powers Bitcoin is inherently secure, threats such as hacking and scams can pose risks to users. It is crucial to implement best practices, such as using secure wallets and employing strong authentication methods, to protect Bitcoin holdings. Education and awareness are vital in safeguarding against potential security breaches.</p><p><br /></p><p><u>The Risks of Bitcoin</u></p><p><br /></p><p>Despite its advantages, Bitcoin also carries inherent risks. One of the primary concerns is price volatility, as Bitcoin's value can experience significant fluctuations in short periods. Regulatory challenges and government interventions also pose risks to the cryptocurrency market. Moreover, the lack of centralized authority means there is limited recourse in the event of fraud or loss of funds. It is crucial for users to exercise caution and understand the risks associated with Bitcoin.</p><p><br /></p><p><u>Regulatory Challenges</u></p><p><br /></p><p>The regulatory landscape surrounding Bitcoin is complex and varies from country to country. Governments are grappling with how to regulate cryptocurrencies while balancing innovation and consumer protection. Some countries have embraced cryptocurrencies and established regulatory frameworks, while others have imposed restrictions or bans. Achieving a globally harmonized approach to Bitcoin regulation remains an ongoing challenge.</p><p><br /></p><p><u>Conclusion</u></p><p><br /></p><p>In conclusion, Bitcoin has emerged as a revolutionary digital currency that has transformed the way we perceive and engage with money. Its decentralized nature, secure transactions, and potential for investment have garnered significant attention worldwide. However, Bitcoin also presents risks and challenges that must be carefully navigated. As the future unfolds, Bitcoin continues to shape the financial landscape, offering new opportunities and possibilities.</p><p><br /></p><p><u>FAQs</u></p><p><br /></p><p>Is Bitcoin legal?</p><p><br /></p><p>The legality of Bitcoin varies from country to country. While some nations have embraced Bitcoin and established regulatory frameworks, others have imposed restrictions or even banned its use. It's essential to familiarize yourself with the regulations in your jurisdiction before engaging in Bitcoin transactions.</p><p><br /></p><p>How do I buy Bitcoin?</p><p><br /></p><p>There are several ways to buy Bitcoin. You can use cryptocurrency exchanges, where you can trade fiat currency for Bitcoin. Additionally, some platforms offer peer-to-peer trading, connecting buyers and sellers directly. It's crucial to choose reputable and secure exchanges and follow the necessary verification procedures.</p><p><br /></p><p>Can I mine Bitcoin on my personal computer?</p><p><br /></p><p>Bitcoin mining has become highly competitive, requiring specialized hardware known as ASICs (Application-Specific Integrated Circuits). Mining with a personal computer is no longer feasible due to the immense computational power required. However, there are alternative cryptocurrencies that can be mined with regular computers or graphics cards.</p><p><br /></p><p>What is a Bitcoin wallet?</p><p><br /></p><p>A Bitcoin wallet is a digital wallet that allows you to store, send, and receive Bitcoin securely. Wallets come in various forms, including software wallets, hardware wallets, and online wallets. Each type has its own advantages and security considerations. It's essential to choose a reliable wallet and safeguard your private keys, which grant access to your Bitcoin holdings.</p><p><br /></p><p>How do I keep my Bitcoin secure?</p><p><br /></p><p>To keep your Bitcoin secure, it's crucial to follow best practices. This includes using a secure wallet, such as a hardware wallet, that keeps your private keys offline. Enable two-factor authentication for added security. Be cautious of phishing attempts and only transact with reputable platforms. Regularly update your software and stay informed about the latest security measures.</p><p><br /></p><p>As Bitcoin continues to evolve, it's essential to stay informed and adapt to the changing landscape. Remember to do thorough research, exercise caution, and seek professional advice when necessary. Bitcoin offers exciting possibilities, but it's important to navigate the world of cryptocurrencies responsibly. Happy investing and exploring the world of Bitcoin!</p><p><br /></p><p><br /></p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-21823762598905408632023-05-28T20:44:00.010-07:002023-05-28T23:29:05.649-07:002023 Investment Advice<div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="317" src="https://www.youtube.com/embed/PB3Q3j85nGM" width="541" youtube-src-id="PB3Q3j85nGM"></iframe></div><br /><p>1) Diversify your portfolio: Spreading your investments across different asset classes (stocks, bonds, real estate, etc.) and geographies can help reduce risk. Diversification can help protect your portfolio from volatility in any single investment.</p><p><br /></p><p>2) Consider long-term investments: Investing with a long-term perspective can often yield better results. Rather than trying to time the market or chase short-term gains, focus on quality investments that have the potential to grow over time.</p><p><br /></p><p>3) Research before investing: Do your due diligence and thoroughly research any investment opportunity before committing your funds. Look into the company's financial health, track record, competitive advantages, and future prospects.</p><p><br /></p><p>4) Consider index funds and ETFs: If you're not comfortable picking individual stocks, consider investing in index funds or exchange-traded funds (ETFs). These funds provide diversification by investing in a broad range of stocks or other assets that track specific indices.</p><p><br /></p><p>5) Stay updated with market trends: Keep yourself informed about the latest market trends, economic indicators, and geopolitical events that could impact your investments. However, avoid making knee-jerk reactions based on short-term market movements.</p><p><br /></p><p>6) Focus on risk management: Understand your risk tolerance and invest accordingly. Balancing high-risk and low-risk investments in your portfolio can help mitigate potential losses.</p><p><br /></p><p>7) Plan for retirement: If you haven't already, start planning for your retirement by contributing to retirement accounts such as 401(k)s, IRAs, or other tax-advantaged retirement plans. Maximize your contributions to take advantage of employer matches or tax benefits.</p><p><br /></p><p>8) Seek professional advice if needed: If you feel overwhelmed or lack the knowledge to make investment decisions, consider consulting a financial advisor. They can provide personalized guidance based on your specific financial goals and risk tolerance.</p><p><br /></p><p>Remember, investing involves uncertainty, and past performance is not indicative of future results. Be cautious, stay informed, and make investment decisions that align with your financial goals and risk tolerance.</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-75831575961117647082023-05-26T02:03:00.004-07:002023-05-26T02:03:22.385-07:00Recover a Bitcoin wallet.dat file from an old hard disk<p>To recover a Bitcoin wallet.dat file from an old hard disk, here are a few steps you can take:</p><p>1) Locate the old hard disk: Find the hard disk or device where you believe the wallet.dat file is stored. This could be an old computer, external hard drive, or any other storage medium.</p><p><br /></p><p>2) Connect the hard disk: If the old hard disk is not already connected to your computer, you will need to physically connect it. This may involve using a USB adapter or connecting it internally if compatible with your computer's hardware.</p><p><br /></p><p>3) Data recovery software: If the old hard disk is not accessible or is damaged, you might need to use data recovery software. There are various data recovery tools available that can help you recover files from a malfunctioning or corrupted hard disk. Research and choose a reliable and reputable data recovery tool.</p><p><br /></p><p>4) Scan the old hard disk: Use the data recovery software to scan the old hard disk and search for the wallet.dat file. This process might take some time, depending on the size of the disk and the condition of the data.</p><p><br /></p><p>5) Recover the wallet.dat file: Once the data recovery software finds the wallet.dat file, you can recover it to a new location on your current computer or an external storage device. Ensure you have sufficient storage space and choose a secure location for the recovered file.</p><p><br /></p><p>6) Use a compatible Bitcoin wallet: To access the funds stored in the recovered wallet.dat file, you will need to use a Bitcoin wallet that is compatible with wallet.dat files. Examples include Bitcoin Core (the original Bitcoin client), Electrum, or other wallets that support importing wallet.dat files.</p><p><br /></p><p>7) Import the wallet.dat file: Open the Bitcoin wallet software and look for the option to import or restore a wallet. Choose the wallet.dat file you recovered and follow the instructions provided by the wallet software. This should allow you to access the funds associated with the recovered wallet.</p><p><br /></p><p>It's worth noting that the success of recovering the wallet.dat file depends on various factors, such as the condition of the old hard disk and the effectiveness of the data recovery software. It's also essential to take precautions to protect the recovered wallet.dat file, such as making multiple backups and using strong encryption.</p><p><br /></p><p>If you are unsure about any step in the process or need further assistance, it's recommended to consult with a professional data recovery service or a knowledgeable expert in cryptocurrency wallets.</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-20138995329695523662023-05-02T17:22:00.007-07:002023-05-02T17:22:53.325-07:00Bitcoin Price Prediction 2023 May - 2024 May<p>There are many websites and individuals offering Bitcoin price predictions for the period between May 2023 and May 2024. However, it is important to approach these predictions with caution and do your own research before making any investment decisions. Here are some of the current available Bitcoin price predictions for this period from popular websites:</p><p><br /></p><p>LongForecast predicts that the price of Bitcoin could range between $75,000 and $110,000 during this period, with an average price of $92,000.</p><p>DigitalCoinPrice predicts that the price of Bitcoin could range between $116,000 and $146,000 during this period, with an average price of $129,000.</p><p>CoinPriceForecast predicts that the price of Bitcoin could range between $154,000 and $220,000 during this period, with an average price of $185,000.</p><p>It is important to keep in mind that these are just predictions, and the actual price of Bitcoin may differ significantly from these estimates. Many factors can influence the price of Bitcoin, including global economic conditions, regulatory developments, technological advancements, and investor sentiment. Therefore, it is always a good idea to conduct thorough research and seek professional advice before making any investment decisions, especially when it comes to high-risk investments like cryptocurrencies.</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-64233719064365926292023-04-25T22:51:00.005-07:002023-04-25T22:51:19.740-07:00ChatGPT and Bitcoin<p> There are several ways you can use ChatGPT to get information and advice on cryptocurrency:</p><p><br /></p><p>Ask general questions: You can ask ChatGPT general questions about cryptocurrency, such as "What is Bitcoin?" or "What is blockchain technology?" ChatGPT will be able to provide you with basic information and definitions.</p><p><br /></p><p>Get price updates: You can ask ChatGPT for the current price of a specific cryptocurrency, such as "What is the price of Bitcoin?" ChatGPT will be able to provide you with the latest price information.</p><p><br /></p><p>Get trading advice: You can ask ChatGPT for trading advice on specific cryptocurrencies. For example, you can ask "Should I buy Bitcoin now?" or "What is the best cryptocurrency to invest in?" ChatGPT will be able to provide you with general advice based on market trends and historical data.</p><p><br /></p><p>Learn about new developments: You can ask ChatGPT about new developments in the cryptocurrency world, such as new ICOs, regulations, or market trends. ChatGPT will be able to provide you with up-to-date information on these topics.</p><p><br /></p><p>It's important to remember that ChatGPT is an artificial intelligence language model and not a financial advisor. While ChatGPT can provide you with general information and advice on cryptocurrency, you should always do your own research and consult with a financial advisor before making any investment decisions.</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-84727277932862511662023-04-25T22:49:00.002-07:002023-04-25T22:49:51.457-07:00What is Web 3.0<p> Web 3.0, also known as the decentralised or semantic web, is the next generation of the internet built on blockchain technology. It aims to create a more open, transparent, and decentralised internet controlled by users rather than centralised entities. In this article, we will explore the concept of Web 3.0 in detail, its features, and how it differs from the current version of the Internet.</p><p>Web 1.0 was the first version of the internet, characterised by static web pages and a lack of user interactivity. This version of the internet was designed for information sharing and was controlled by a few central authorities. Web 2.0, on the other hand, is the current version of the internet, characterised by dynamic and interactive web pages, social media, e-commerce, and mobile apps. This version of the internet is controlled by centralised entities such as Facebook, Google, and Amazon, who collect user data and monetise it for their own benefit.</p><p>Web 3.0, however, is different. It aims to create a decentralised internet that is not controlled by any central authority. Instead, it is built on blockchain technology, a distributed ledger that enables secure and transparent transactions without intermediaries. Blockchain technology allows Web 3.0 to be faster, more private, and more evident than the current version of the Internet.</p><p>One of the main features of Web 3.0 is decentralisation. In Web 3.0, there is no central point of control, and all data is stored on a distributed network of computers. This means there is no single point of failure, and a single entity cannot take down the network. Instead, the network is maintained by a community of users who contribute their computing power.</p><p>Another feature of Web 3.0 is privacy. In the current version of the internet, user data is collected and monetised by centralised entities such as Google and Facebook. However, in Web 3.0, users have more control over their data and can choose to share it with others on a need-to-know basis. This means that users can maintain their privacy while still being able to share their data with others.</p><p>Web 3.0 also aims to create a more transparent internet. In the current version of the internet, users often need to be made aware of how their data is being used and who is collecting it. However, in Web 3.0, all transactions are recorded on the blockchain, a public ledger that anyone can access. This means that users can see how their data is used and who collects it.</p><p>One of the main applications of Web 3.0 is decentralised applications (dApps). dApps run on a decentralised network and are not controlled by any central authority. They can be used for various purposes, such as social media, e-commerce, and finance. dApps are built on blockchain technology, which enables them to be more secure, transparent, and decentralised than traditional applications.</p><p>Web 3.0 also includes the use of smart contracts, which are self-executing contracts that are stored on the blockchain. Smart contracts enable transactions to be executed automatically without intermediaries, making them faster, cheaper, and more secure than traditional contracts.</p><p>Web 3.0 can revolutionise the internet and create a more open, transparent, decentralised internet controlled by users rather than centralised entities. It has the potential to disrupt industries such as finance, social media, and e-commerce and create new business models that are more transparent and decentralised.</p><p>In conclusion, Web 3.0 is the next internet generation built on blockchain technology. It aims to create a more open, transparent, and decentralised internet controlled by users rather than centralised entities. Web 3.0 is characterised by decentralisation, privacy, transparency, decentralised applications (dApps) and smart contracts. It has the potential to disrupt industries and create new business models that are more transparent and decentralised.</p><p>One of the main advantages of Web 3.0 is that it enables users to take back control of their data. In the current version of the internet, users often need more control over their data and how it is used. Centralised entities such as Facebook and Google collect user data and use it for their own benefit. In Web 3.0, users have more control over their data and can choose to share it on a need-to-know basis. This means that users can maintain their privacy while still being able to share their data with others.</p><p>Another advantage of Web 3.0 is that it is more secure than the current version of the Internet. In the current version of the internet, hackers can exploit many vulnerabilities. However, in Web 3.0, data is stored on a distributed computer network, making hacking more difficult. Additionally, smart contracts enable transactions to be executed automatically without intermediaries, making them more secure than traditional contracts.</p><p>Web 3.0 also has the potential to disrupt industries and create new business models. For example, in the finance industry, decentralised finance (DeFi) applications are being built on Web 3.0. These applications enable users to access financial services such as lending, borrowing, and trading without intermediaries such as banks. This makes the financial system more transparent and decentralised, reducing the risk of financial crises.</p><p>In the social media industry, decentralised platforms are built on Web 3.0. These platforms enable users to control their data and interact with others without the need for centralised entities such as Facebook and Twitter. This makes social media more transparent and decentralised, reducing the risk of censorship and promoting freedom of expression.</p><p>In the e-commerce industry, decentralised marketplaces are being built on Web 3.0. These marketplaces enable users to buy and sell goods and services without intermediaries like Amazon and eBay. This makes e-commerce more transparent and decentralised, reducing the risk of fraud and promoting fairer competition.</p><p>In conclusion, Web 3.0 is the next internet generation built on blockchain technology. It aims to create a more open, transparent, and decentralised internet controlled by users rather than centralised entities. Web 3.0 can disrupt industries and create new, more transparent, decentralised business models. It also enables users to regain data control and promotes privacy and security. Web 3.0 is still in its early stages of development, but it has the potential to revolutionise the internet and create a more fair and equitable society.</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-5908295436037178652023-04-05T05:48:00.002-07:002023-04-05T05:48:57.863-07:00Bitcoin Halving: What It Is and Why It Matters<p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">Bitcoin Halving: What It Is and Why It Matters</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">Bitcoin halving is a significant event that occurs approximately every four years, and it has important implications for the future of Bitcoin and the cryptocurrency market as a whole. In this article, we'll explore what Bitcoin halving is, why it matters, and what impact it could have on the cryptocurrency market.</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">What Is Bitcoin Halving?</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">Bitcoin halving is an event that occurs approximately every four years, or after every 210,000 blocks are mined in the Bitcoin network. During the halving event, the block reward that miners receive for mining a new block is cut in half. This reduction in the block reward is designed to slow down the rate of new Bitcoin creation and help maintain the currency's limited supply.</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">The first Bitcoin halving occurred in November 2012, when the block reward was reduced from 50 Bitcoins to 25 Bitcoins. The second halving occurred in July 2016, when the block reward was further reduced to 12.5 Bitcoins. The most recent halving occurred in May 2020, when the block reward was reduced to 6.25 Bitcoins.</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">The next Bitcoin halving is expected to occur in 2024, and it will reduce the block reward to 3.125 Bitcoins. This reduction in the supply of new Bitcoins is one of the key factors that contributes to the currency's deflationary nature, and it is one reason why many people view Bitcoin as a store of value.</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">Why Does Bitcoin Halving Matter?</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">Bitcoin halving is an important event for several reasons. First, it helps maintain the scarcity of Bitcoin. By reducing the rate of new Bitcoin creation, halving ensures that the total supply of Bitcoin is limited to 21 million coins. This scarcity makes Bitcoin a valuable asset, and it is one reason why many people view it as a store of value.</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">Second, halving has a significant impact on the Bitcoin mining industry. Mining Bitcoin requires a significant amount of computing power, and miners are rewarded with Bitcoin for verifying transactions and adding new blocks to the blockchain. When the block reward is reduced, it becomes less profitable for miners to mine Bitcoin. This can lead to a decrease in the number of miners on the network, which can in turn affect the security and stability of the network.</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">Third, halving can have a significant impact on the price of Bitcoin. In the months leading up to a halving event, there is often a lot of speculation and anticipation in the market. Some investors believe that the reduction in the block reward will reduce the supply of new Bitcoin, which will in turn increase the price of Bitcoin. This speculation can lead to increased demand for Bitcoin and a price rally leading up to the halving event.</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">However, it's important to note that halving does not necessarily guarantee an increase in the price of Bitcoin. The cryptocurrency market is highly volatile and unpredictable, and there are many other factors that can influence the price of Bitcoin, including market sentiment, global economic conditions, and regulatory developments.</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">Bitcoin Halving and the Future of Cryptocurrency</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">Bitcoin halving is just one of the many events and factors that will shape the future of cryptocurrency. As the cryptocurrency market continues to mature and evolve, it is likely that we will see new innovations and developments that could have a significant impact on the market.</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">One potential development that could impact the market is the emergence of central bank digital currencies (CBDCs). Several countries, including China and the United States, are currently exploring the possibility of creating their own digital currencies. If these digital currencies are widely adopted, they could have a significant impact on the demand for cryptocurrencies like Bitcoin.</p><p><span style="-webkit-text-size-adjust: 100%; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; white-space: pre-wrap;">Another factor that could impact the market is the evolution of blockchain technology. Blockchain is the </span> <span style="-webkit-text-size-adjust: 100%; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; white-space: pre-wrap;">underlying technology that powers Bitcoin and many other cryptocurrencies. As the technology continues to evolve, we could see new use cases for blockchain beyond cryptocurrency, such as in supply chain management, voting systems, and more. These new use cases could drive adoption and demand for cryptocurrencies like Bitcoin.</span></p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px; white-space: pre-wrap;">Additionally, the regulatory landscape for cryptocurrency is also evolving. Some countries have been more receptive to cryptocurrency than others, and there have been efforts to regulate the industry to prevent fraud and protect consumers. The regulatory environment could impact the adoption and growth of cryptocurrency in the future.</p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; -webkit-text-size-adjust: 100%; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; caret-color: rgb(55, 65, 81); color: #374151; font-family: Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; font-size: 16px; margin: 1.25em 0px 0px; white-space: pre-wrap;">Overall, Bitcoin halving is an important event that highlights the limited supply of Bitcoin and the role of miners in the cryptocurrency ecosystem. It also has implications for the price of Bitcoin and the stability and security of the network. However, it's important to keep in mind that halving is just one event in the constantly evolving and unpredictable cryptocurrency market. As the market continues to mature and evolve, we can expect to see new developments and innovations that could have a significant impact on the future of cryptocurrency.</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-14118369686551314912022-04-28T01:18:00.000-07:002022-04-28T01:18:05.572-07:00What Are Stablecoins and How Do They Work?<p align="center" class="MsoNormal" style="line-height: 37.5pt; margin-bottom: .25in; mso-outline-level: 1; text-align: center;"><b><span style="font-family: "inherit",serif; font-size: 30.0pt; mso-bidi-font-family: "Segoe UI"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY; mso-font-kerning: 18.0pt;">What Are Stablecoins and How Do They Work?<o:p></o:p></span></b></p><p align="center" class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: center;"><span style="font-family: "Segoe UI",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">In this article, you will learn the 101 of this
crypto token class, how they work, how to buy them, and their pros and cons.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: .25in; mso-margin-top-alt: auto;"><i><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Stablecoins
are cryptocurrencies whose value is pegged to a fiat currency like the US
dollar, other cryptocurrencies, or a commodity like oil or gold, resulting in a
relatively stable price.</span></i><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"><o:p></o:p></span></p><p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: .25in; mso-margin-top-alt: auto;"><b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Key
takeaways:</span></b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"><o:p></o:p></span></p><ul type="disc">
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l2 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Designed to maintain price
stability, stablecoins bridge the gap between fiat currencies and
cryptocurrencies<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l2 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">They are pegged to
traditional assets such as fiat currencies or gold, making them a less
volatile alternative than typical cryptocurrencies <o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l2 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Promising faster
transactions and lower costs, stablecoins are an attractive alternative to
traditional banking<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l2 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">They allow traders to keep
their money in the crypto ecosystem while storing them in a stable asset
between trades or during volatile periods<o:p></o:p></span></li>
</ul><p style="line-height: 24.0pt; margin-bottom: .25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Stablecoins are cryptocurrencies that have
their price pegged to a specific asset – which is most often, but not always,
the United States dollar. <o:p></o:p></span></p><p style="box-sizing: border-box; line-height: 24pt; margin-block: 0px; margin-bottom: 0.25in;"><strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">But what makes this
type of cryptocurrency so special compared to classic crypto tokens?</span></strong><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;"><o:p></o:p></span></p><p style="box-sizing: border-box; line-height: 24pt; margin-block: 0px; margin-bottom: 0.25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">You
are probably aware of the drastic ups and downs of valuation of some
traditional cryptocurrencies within a short period of time. Recalling the <a href="https://crypto.com/price/bitcoin" style="box-sizing: border-box; word-break: break-word;"><span style="color: windowtext; text-decoration-line: none;">historical price of Bitcoin</span></a> in February of
2021, it nearly doubled in price from around USD 32,000 to USD 58,000, but then
dropped dramatically in May back to around USD 34,000. <o:p></o:p></span></p><p style="box-sizing: border-box; line-height: 24pt; margin-block: 0px; margin-bottom: 0.25in;"><strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Such fluctuations,
or so-called ‘short-term volatility’, make these cryptocurrencies unfavourable
for everyday use by the public. </span></strong><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;"><o:p></o:p></span></p><p style="box-sizing: border-box; line-height: 24pt; margin-block: 0px; margin-bottom: 0.25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Serving
the purpose of maintaining the value and purchasing power, pegging with assets
can make stablecoins more resilient from market fluctuations in cryptocurrency
space. For instance, one of the most popular stablecoins – <a href="https://crypto.com/price/tether" style="box-sizing: border-box; word-break: break-word;" target="_blank"><span style="color: windowtext; text-decoration-line: none;">Tether (USDT)</span></a> – is equal to USD 1 at
nearly all times. Other popular stablecoins include USD Coin (USDC) and
TerraUSD (UST).<o:p></o:p></span></p><p style="box-sizing: border-box; line-height: 24pt; margin-block: 0px; margin-bottom: 0.25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Unlike
other cryptocurrencies, not only does a stablecoin have significantly lower
volatility due to its asset-backed nature, it also plays a bridging role in the
world of cryptocurrencies and fiat currencies to facilitate daily commercial
transactions and exchange. <o:p></o:p></span></p><h3 style="box-sizing: border-box; line-height: 28.5pt; margin: 24pt 0in 0.25in;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;">Benefits of stablecoins include:<o:p></o:p></span></h3><ul style="box-sizing: border-box;" type="disc">
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Lower
volatility <o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Lower-cost
transactions<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Safe option to
keep assets in the crypto ecosystem<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Real-time
payments<o:p></o:p></span></li>
</ul><p style="box-sizing: border-box; line-height: 24pt; margin-block: 0px; margin-bottom: 0.25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">These
benefits make stablecoins more competitive than other crypto tokens as they
touch on consumer and business painpoints of Bitcoin and other tokens that
offer neither stability nor scalability to real-time transactions.<o:p></o:p></span></p><p style="box-sizing: border-box; line-height: 24pt; margin-block: 0px; margin-bottom: 0.25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Today,
the <a href="https://crypto.com/price/categories/stablecoin" style="box-sizing: border-box; word-break: break-word;" target="_blank"><span style="color: windowtext; text-decoration-line: none;">total market
capitalisation of all the stablecoins</span></a> in the world has reached
more than USD 150 billion. They command more than half of the global crypto
trade volume, making them an important asset in the DeFi ecosystem.<o:p></o:p></span></p><h3 style="line-height: 28.5pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;">There are four types of stablecoins:<o:p></o:p></span></h3><ul style="box-sizing: border-box;" type="disc">
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l0 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Fiat
collateralised stablecoins (the most popular)<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l0 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Crypto-backed
stablecoins<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l0 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Commodity-backed
stablecoins<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l0 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Non-collateralised
stablecoins<o:p></o:p></span></li>
</ul><p style="box-sizing: border-box; line-height: 24pt; margin-block: 0px; margin-bottom: 0.25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">The
primary use for a stablecoin is facilitating trades on crypto exchanges.
Instead of buying Bitcoin directly with fiat currency, like the US dollar,
traders often exchange fiat for a stablecoin – and then execute a trade with
the stablecoin for another cryptocurrency like bitcoin or ether. <o:p></o:p></span></p><p style="box-sizing: border-box; line-height: 24pt; margin-block: 0px; margin-bottom: 0.25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Stablecoins
can also act as payment alternatives. By utilising stablecoins, businesses can
accept payments at a very low cost and governments could run conditional cash
transfer programs easier than before.<a href="https://hbr.org/2021/08/stablecoins-and-the-future-of-money" style="box-sizing: border-box; word-break: break-word;"><span style="color: windowtext; text-decoration-line: none;"> </span></a>Due to its fast as
thunder transaction, stablecoins can also be used to distribute monetary aid to
beneficiaries worldwide. <o:p></o:p></span></p><p style="box-sizing: border-box; line-height: 24pt; margin-block: 0px; margin-bottom: 0.25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Another
use for stablecoins is to send funds across international borders. <a href="https://www.coindesk.com/business/2021/09/28/stablecoin-pegged-to-perus-currency-launches-on-stellar/" style="box-sizing: border-box; word-break: break-word;" target="_blank"><span style="color: windowtext; text-decoration-line: none;">Sol Digital</span></a>,
a stablecoin that’s pegged to the sol, Peru’s national currency, launched on
the Stellar blockchain in September. It can be exchanged between individuals in
different countries without third-party fees for cross-border money transfers.<o:p></o:p></span></p><p style="line-height: 24.0pt; margin-bottom: .25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">The pegging of stablecoins is near-perfectly
one-to-one through various methods including:<o:p></o:p></span></p><h3 style="box-sizing: border-box; line-height: 28.5pt; margin: 24pt 0in 0.25in;"><strong style="box-sizing: border-box;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt; font-weight: normal;">Reserving of pegged assets (e.g. USDC, USDT)</span></strong><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;"><o:p></o:p></span></h3><p>
</p><figure class="wp-block-image size-large" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 16px; margin: 32px 0px;">
<p style="line-height: 24.0pt; margin-bottom: .25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">It refers to a fully collateralised system
backed by the pegged asset, where arbitrageurs are incentivised by helping to
stabilise the price. When the price of the stablecoin is lower than the pegged
asset, the arbitrageurs can buy cheaper stablecoin, which can then be redeemed
for USD 1 each. Similarly, when the price is higher than the pegged asset, they
can sell the coins to gain profits.<o:p></o:p></span></p>
<h3 style="box-sizing: border-box; line-height: 28.5pt; margin: 24pt 0in 0.25in;"><strong style="box-sizing: border-box;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt; font-weight: normal;">Dual coins</span></strong><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;"><o:p></o:p></span></h3>
<p style="line-height: 24.0pt; margin-bottom: .25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Two coins exist in these kinds of systems,
where one is the pegged coin while a secondary coin is used to absorb the
volatility of the pegged coin.<o:p></o:p></span></p>
<h3 style="box-sizing: border-box; line-height: 28.5pt; margin: 24pt 0in 0.25in;"><strong style="box-sizing: border-box;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt; font-weight: normal;">Algorithmic coins</span></strong><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;"><o:p></o:p></span></h3>
<p style="line-height: 24.0pt; margin-bottom: .25in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Instead of using any reserve or being backed
by assets, these kinds of stablecoins use a fully algorithmic approach to
adjust the supply of the stablecoin in response to price fluctuations. However,
a stable algorithmic coin only exists in theory. None currently exist in the
market.<o:p></o:p></span></p>
<h3 style="box-sizing: border-box; line-height: 28.5pt; margin: 24pt 0in 0.25in;"><strong style="box-sizing: border-box;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt; font-weight: normal;">Leveraged loans (e.g. </span></strong><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;"><a href="https://crypto.com/price/multi-collateral-dai" style="box-sizing: border-box; word-break: break-word;" target="_blank"><strong style="box-sizing: border-box;"><span style="color: windowtext; font-weight: normal; text-decoration-line: none;">DAI</span></strong></a><strong style="box-sizing: border-box;"><span style="font-weight: normal;">)</span></strong><o:p></o:p></span></h3>
<p class="MsoNormal"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; line-height: 107%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">This kind of stablecoin is backed by an over-collateralised system. The
most successful example is DAI, in which the stablecoin is backed by PETH, and
its value is correlated to Ethereum. Since the collaterals are more volatile in
terms of price, users need to have more than USD $1.5 worth of PETH to</span><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; font-family: "Segoe UI", sans-serif; font-size: 13.5pt; line-height: 107%;"> </span><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; line-height: 107%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">borrow
USD $1 of DAI. If the collateral price falls sharply, the debt position will be
liquidated, and the remaining amount of collateral will be returned to the user.</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: .25in; mso-margin-top-alt: auto;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">A common
concern over stablecoins is whether they are less secure than US regulated bank
accounts or money market funds. Investors can mitigate this in two ways: the
first is the classic crypto advice of DYOR – do your own research – before
investing. Check the issuing entity, their history and past projects, in detail
before trusting them with your funds. Further, investors can easily move into
other stablecoins or even other cryptocurrencies if investors lose confidence
in a coin as volatility is not an issue. However, based on its nature and
mechanism, the risk of failure or volatility is near zero for established
stable coins if they are sufficiently pegged by the issuers.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: .25in; mso-margin-top-alt: auto;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Currently,
stablecoins regulations are still up to discussion in most jurisdictions. For
example in the US, the President’s Working Group on Financial Markets, composed
of the heads of the US Treasury Department, Federal Reserve, SEC, and CFTC, has
released a <a href="https://home.treasury.gov/system/files/136/StableCoinReport_Nov1_508.pdf" target="_blank"><span style="color: windowtext; text-decoration-line: none;">report</span></a> in Nov 2021. It raises the risks related to lack
of transparency, market integrity, and investor protection. Legislation to
regulate stablecoin issuers is proposed but yet to be enacted.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; line-height: 107%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">With the growing acceptance of cryptocurrencies and the steadiness that
stablecoins bring to the DeFi, their integral role in the ecosystem, providing
ease of trading crypto, staking, and lending is cemented. While legislation of
some countries may place additional restrictions and requirements on
stablecoins issuers, it is also anticipated that financial regulatory agencies
and related stakeholders will continue to work closely on ways to foster
financial innovation while minimising associated risks. <o:p></o:p></span></p></figure>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com2tag:blogger.com,1999:blog-5043166776166276009.post-47923147467383929332022-04-26T20:07:00.003-07:002022-04-26T20:07:25.270-07:00What is a Crypto Wallet? A Beginner’s Guide<p> </p><p align="center" class="MsoNormal" style="line-height: 37.5pt; margin-bottom: .25in; mso-outline-level: 1; text-align: center;"><b><span style="font-family: "inherit",serif; font-size: 30.0pt; mso-bidi-font-family: "Segoe UI"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY; mso-font-kerning: 18.0pt;">What is a Crypto Wallet? A Beginner’s Guide<o:p></o:p></span></b></p>
<p align="center" class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: center;"><span style="font-family: "Segoe UI",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Hot wallets vs cold wallets. Custodial or
non-custodial. If you are confused by the different types of crypto wallets on
the market, you have come to the right place.<o:p></o:p></span></p>
<h3 style="line-height: 28.5pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt;"><strong><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt; font-weight: normal;">Key Takeaways</span></strong><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;"><o:p></o:p></span></h3>
<ul style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;" type="disc">
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Contrary to
popular belief, crypto wallets do not physically hold cryptocurrencies
like the wallet in your pocket<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Instead, they
store the public and private keys required to buy cryptocurrencies and
provide digital signatures that authorise each transaction<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">There are
several types of crypto wallets including physical devices, software, and
even paper<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Determining
which crypto wallet is best for you depends entirely on your individual
trading needs <o:p></o:p></span></li>
</ul>
<h2 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 33.75pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 21.0pt;">What is a Crypto Wallet?<o:p></o:p></span></h2>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Cryptocurrency
wallets store users’ public and private keys while providing an easy-to-use
interface to manage crypto balances. They also support cryptocurrency transfers
through the <a href="https://crypto.com/university/what-is-blockchain-consensus" style="box-sizing: border-box; word-break: break-word;" target="_blank"><span style="color: windowtext; text-decoration: none; text-underline: none;">blockchain</span></a>.
Some wallets even allow users to perform certain actions with their crypto
assets such as buying and selling or interacting with <a href="https://crypto.com/university/decentralised-finance-defi-intro" style="box-sizing: border-box; word-break: break-word;" target="_blank"><span style="color: windowtext; text-decoration: none; text-underline: none;">decentralised
applications (DApps)</span></a>.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">It
is important to remember that cryptocurrency transactions do not represent a
‘sending’ of crypto tokens from your mobile phone to someone else’s mobile
phone. When you are sending tokens, you are actually using your private key to
sign the transaction and broadcast it to the blockchain network. The network
will then include your transaction to reflect the updated balance in your
address and the recipient’s.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">So,
the term ‘wallet’ is actually somewhat of a misnomer as crypto wallets don’t
really store cryptocurrency in the same way physical wallets hold cash.
Instead, they read the public ledger to show you the balances in your addresses
and also hold the private keys that enable you to make transactions.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">Not sure what a public
or private key is? </span></strong><b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;"><br style="box-sizing: border-box;" />
</span></b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">A
key is a long string of random, unpredictable characters. While a public key is
like your bank account number and can be shared widely, your private key is
like your bank account password or PIN and should be kept secret. In public-key
cryptography, every public key is paired with one corresponding private key.
Together, they are used to encrypt and decrypt data.<o:p></o:p></span></p>
<h2 style="line-height: 33.75pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 21.0pt;">Why You Need a Crypto Wallet<o:p></o:p></span></h2>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Your
cryptocurrency is only as safe as the method you use to store it. While you can
technically store crypto directly on the exchange, it is not advisable to do so
unless in small amounts or if you plan to trade them frequently. <o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">For
larger amounts, it’s recommended that you withdraw the majority to a crypto
wallet, whether that be a hot wallet or a cold one. This way, you retain
ownership of your private keys and have full power and control over your own
finances. <o:p></o:p></span></p>
<h2 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 33.75pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 21.0pt;">How do Cryptocurrency Wallets Work?<o:p></o:p></span></h2>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">As
mentioned earlier, a wallet doesn’t actually hold your coins. Instead, it holds
the </span><em style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">key</span></em><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;"> to your coins which are
actually stored on public blockchain networks. <o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">In
order to perform various transactions, you’ll need to verify your address via a
private key that comes in a set of specific codes. The speed and security often
depend on the kind of wallet that you have.<o:p></o:p></span></p>
<h2 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 33.75pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 21.0pt;">Different Types of Crypto Wallets<o:p></o:p></span></h2>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">There
are two main types of crypto wallets: software-based hot wallets and physical
cold wallets. Read on to learn about the different types of cryptocurrency
wallets, and which is best for you and your needs. <o:p></o:p></span></p>
<h2 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 33.75pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 21.0pt;">Hot and Cold Wallets – What’s the Difference?<o:p></o:p></span></h2>
<h4 style="line-height: 22.3pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;">Hot Wallets<o:p></o:p></span></h4>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">The
main difference between hot and cold wallets is whether they are connected to
the Internet. </span><strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">Hot wallets are
connected to the Internet, while cold wallets are kept offline.</span></strong><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;"> This means
that funds stored in hot wallets are more accessible, and are easier for
hackers to gain access to.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">Examples of hot wallets
include:</span></strong><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;"><o:p></o:p></span></p>
<ul style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;" type="disc">
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l9 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Web-based
wallets<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l9 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Mobile wallets<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l9 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Desktop wallets<o:p></o:p></span></li>
</ul>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">In
hot wallets, private keys are stored and encrypted on the app itself, which is
kept online. Using a hot wallet can be risky because computer networks have
hidden vulnerabilities that can be targeted by hackers or malware programs to break
into the system. Keeping large amounts of cryptocurrency in a hot wallet is a
fundamentally poor security practice, but the risks can be mitigated by using a
hot wallet with stronger encryption, or by using devices that store private
keys in a secure enclave.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">There
are different reasons why an investor might want their cryptocurrency holdings
to be either connected or disconnected from the Internet. Because of this, it’s
not uncommon for cryptocurrency holders to have multiple cryptocurrency
wallets, including both hot and cold wallets.<o:p></o:p></span></p>
<h4 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 22.3pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;">Cold Wallets<o:p></o:p></span></h4>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">As
introduced at the beginning of this section, a cold wallet is entirely offline.
While they’re certainly not as convenient as hot wallets, they are far more
secure. An example of a physical medium used for cold storage is a piece of
paper or an engraved piece of metal.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">Examples of cold
wallets include:</span></strong><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;"><o:p></o:p></span></p>
<ul style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;" type="disc">
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l4 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Paper wallets<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l4 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Hardware
wallets<o:p></o:p></span></li>
</ul>
<h5 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 22.3pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;">What is a Paper Wallet?<o:p></o:p></span></h5>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">A
paper wallet is a physical location where the private and public keys are
written down or printed. In many ways, this is safer than keeping funds in a
hot wallet, since remote hackers have no way of accessing these keys which are
kept safe from phishing attacks. On the other hand, it opens up the potential
risk of the piece of paper getting destroyed or lost, which may result in
irrecoverable funds.<o:p></o:p></span></p>
<h5 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 22.3pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;">What is a Hardware Wallet?<o:p></o:p></span></h5>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">A
hardware wallet is an external device (usually a USB or Bluetooth device) that
stores your keys. You can only sign a transaction by pushing a physical button
on the device, which malicious actors cannot control.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">For
any cryptocurrency assets that you do not need instant access to, the best
practice is to store them offline in a cold wallet. However, users should note
that this also means that </span><strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">securing your assets is
entirely your own responsibility</span></strong><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">. So it’s up to you to make sure that you
don’t lose it or have it stolen!<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><em style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Tip: For increased security, separate
your public and private keys, keep them offline, and store your physical wallet
in a safe deposit box. </span></em><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;"><o:p></o:p></span></p>
<h4 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 22.3pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;">Hot Wallets vs Cold Wallets: Which is Better?<o:p></o:p></span></h4>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">While
both methods of storage have benefits and drawbacks, the option you choose will
depend on what you are looking for. For example:<o:p></o:p></span></p>
<ul style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;" type="disc">
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l8 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">If you plan to
trade day-to-day, then accessibility will be of paramount importance,
meaning that a hot wallet is probably an apt choice.<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l8 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">However, if you
are considering storing a huge amount of crypto assets and value security
over convenience, then it might be wise to invest in a cold wallet.<o:p></o:p></span></li>
</ul>
<h2 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 33.75pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 21.0pt;">Custodial and Non-Custodial Wallets<o:p></o:p></span></h2>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">In
addition to the wallets mentioned above, wallets can be further separated into
custodial and non-custodial types.<o:p></o:p></span></p>
<h4 style="line-height: 22.3pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;">Custodial Wallets<o:p></o:p></span></h4>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Most
web-based crypto wallets tend to be custodial wallets. Typically offered on
cryptocurrency exchanges, these wallets are known for their convenience and
ease of usage, and are especially popular with newcomers, as well as
experienced day traders. <o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">The
main difference between custodial wallets and the types mentioned above is that
users are </span><strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">no longer in full
control of their tokens</span></strong><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">, and the private keys needed to sign for
transactions are held only by the exchange.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">The
implication here is that </span><strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">users must trust the
service provider to securely store their tokens and implement strong security
measures to prevent unauthorised access</span></strong><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">. These measures include <a href="https://help.crypto.com/en/articles/3208595-all-about-2fa" style="box-sizing: border-box; word-break: break-word;" target="_blank"><span style="color: windowtext; text-decoration: none; text-underline: none;">two-factor authentication</span></a>,
email confirmation, and biometric authentication, such as facial recognition or
fingerprint verification. Many exchanges will not allow you to make
transactions until these security measures are properly set up by the user.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Exchanges
and custodial wallet providers will usually also take further steps to ensure
the safety of users’ tokens. For example, a portion of the funds is usually
transferred to the company’s cold wallet, where they can be safe from online
attackers.<br style="box-sizing: border-box;" />
<br style="box-sizing: border-box;" />
At Crypto.com, we have taken many measures to ensure the <a href="https://crypto.com/eea/security" style="box-sizing: border-box; word-break: break-word;" target="_blank"><span style="color: windowtext; text-decoration: none; text-underline: none;">protection of customer funds</span></a>. After rigorous
security audits by a team of cybersecurity and compliance experts, Crypto.com
is the first crypto company in the world to have obtained ISO/IEC 27701:2019,
ISO22301:2019</span><strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">,</span></strong><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;"> ISO27001:2013
and PCI:DSS 3.2.1, Level 1 compliance, and independently assessed at Tier 4,
the highest level for both NIST Cybersecurity and Privacy Frameworks, as well
as Service Organization Control (SOC) 2 compliance.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Additionally,
we have in place a total of US$360 million for insurance protection of customer
funds.<o:p></o:p></span></p>
<h3 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 28.5pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;">Non-Custodial Wallets<o:p></o:p></span></h3>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Non-custodial
wallets, on the other hand, allow you to retain full control of your funds
since the private key is stored locally with the user.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">When
starting a non-custodial wallet, you will be asked to write down and safely
store a list of 12 randomly generated words, known as a ‘recovery’, ‘seed’, or
‘mnemonic’ phrase. From this phrase, all of your public and private keys can be
generated. This acts as a </span><strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">backup or a recovery
mechanism</span></strong><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;"> in
case you lose access to your device.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Anyone
with the seed phrase will be able to gain full control of the funds held in
your wallet. In a case scenario where the seed phrase is lost, you will lose
access to your funds. So it is imperative to keep the mnemonic phrase in a
secure location, and to not store a digital copy of it anywhere! Do not print
it out at a public printer or take a picture of it with your phone.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Note
that hardware wallets are inherently non-custodial since private keys are
stored on the device itself. There are also software-based non-custodial
wallets, such as the Crypto.com Wallet. The common theme here is that </span><strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">the
private keys and the funds are fully in users’ control</span></strong><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">. As the popular
saying within the crypto community goes, ‘not your keys, not your coins!’<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">On
the flip side, however, this means that users must be in charge of their own
security, with regard to the storage of passwords and seed phrases. If any of
these are lost, recovery can be difficult or impossible since they are
typically not stored in any third-party server.<o:p></o:p></span></p>
<h4 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 22.3pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 16.5pt;">Custodial vs Non-Custodial Wallets: Which is Better?<o:p></o:p></span></h4>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Custodial
and non-custodial wallets have different pros and cons that make them suitable
for different types of users:<o:p></o:p></span></p>
<ul style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;" type="disc">
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l1 level1 lfo5; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">If you are
prone to losing passwords and devices, then it makes more sense to use a
custodial wallet, since an exchange or custodian is likely to have better
security practices and backup options. That’s why it’s a popular option
for beginners who have little to no experience trading crypto. Further,
transaction fees with a custodial wallet tend to be cheaper or even
free. <o:p></o:p></span></li>
</ul>
<ul style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;" type="disc">
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l5 level1 lfo6; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">However, if you
prefer to retain full control over your own funds, you might want to
consider a non-custodial wallet.<o:p></o:p></span></li>
</ul>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Ultimately,
it all comes down to your choice.<o:p></o:p></span></p>
<h2 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 33.75pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 21.0pt;">For Additional Security, Consider Multi-Signature Wallets<o:p></o:p></span></h2>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Multi-signature
wallets – or multisig wallets – are wallets that require two or more private
key signatures to authorise transactions. This solution is useful for a number
of use cases:<o:p></o:p></span></p>
<ul style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;" type="disc">
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l2 level1 lfo7; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">An individual
using a multisig wallet can <strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif;">prevent losing access to the
entire wallet in a case scenario where one key is lost</span></strong>.
For example, if a user loses one key, there will still be two other keys
that are able to sign transactions.<o:p></o:p></span></li>
</ul>
<ul start="2" style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;" type="disc">
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l3 level1 lfo8; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Multisig
wallets can prevent the misuse of funds and fraud, which makes them a <strong style="box-sizing: border-box;"><span style="font-family: "Segoe UI",sans-serif;">good
option for hedge funds, exchanges, and corporations</span></strong>. As
each authorised person will have one key and a sign-off requires the
majority of keys, it becomes impossible for any individual to unilaterally
make unauthorised transactions.<o:p></o:p></span></li>
</ul>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">Any
of the wallet types described above have multisig versions. You can have
multisig hot wallets, cold wallets, hardware wallets, and so on.<o:p></o:p></span></p>
<h2 style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 33.75pt; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: 24.0pt; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: windowtext; font-family: "Segoe UI",sans-serif; font-size: 21.0pt;">Which Crypto Wallet Should You Use?<o:p></o:p></span></h2>
<p style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 24.0pt; margin-block: 0px; margin-bottom: .25in; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">When
it comes to crypto wallets, there is no perfect solution. Each type of wallet
has different strengths, purposes, and trade-offs. So it’s really up to you to
weigh up what works best for you and your specific needs. <o:p></o:p></span></p>
<ul style="-webkit-text-stroke-width: 0px; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;" type="disc">
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l6 level1 lfo9; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">For those with
a high risk tolerance who want to make regular, quick online payments, the
convenience of a hot wallet would suit you best.<o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l6 level1 lfo9; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">But if you’re a
little more gun-shy and intend to hold your coins long-term, then a secure
offline device might make the most sense. <o:p></o:p></span></li>
<li class="MsoNormal" style="box-sizing: border-box; line-height: 24.0pt; mso-list: l6 level1 lfo9; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt;">And if it’s the <a href="https://crypto.com/university/what-are-nfts/" style="box-sizing: border-box; word-break: break-word;" target="_blank"><span style="color: windowtext; text-decoration: none; text-underline: none;">NFT</span></a> market
that you’re interested in, then you need to look for a wallet that is
compatible with NFT marketplaces such as <a href="https://opensea.io/" style="box-sizing: border-box; word-break: break-word;" target="_blank"><span style="color: windowtext; text-decoration: none; text-underline: none;">OpenSea</span></a>, <a href="https://solanart.io/" style="box-sizing: border-box; word-break: break-word;" target="_blank"><span style="color: windowtext; text-decoration: none; text-underline: none;">Solanart</span></a>, and <a href="http://crypto.com/nft" style="box-sizing: border-box; word-break: break-word;" target="_blank"><span style="color: windowtext; text-decoration: none; text-underline: none;">Crypto.com</span></a>. <o:p></o:p></span></li>
</ul>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: .25in; mso-margin-top-alt: auto;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">When
choosing a crypto wallet, there are certain factors you should take into
consideration. These include:<o:p></o:p></span></p>
<ul type="disc">
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l7 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Software vs hardware<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l7 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Security features<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l7 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">How user-friendly it is<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l7 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Fees<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l7 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Supported coins<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l7 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Platform compatibility<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l7 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Whether you need DApp and
DEX integration<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l7 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Whether the wallet has
backup options<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 24.0pt; mso-list: l7 level1 lfo10; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">The wallet’s reputation and
longevity on the market<o:p></o:p></span></li>
</ul>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: .25in; mso-margin-top-alt: auto;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">As
storing large quantities of coins in a single wallet is quite risky, <b>a
combination of cold and hot wallets is usually ideal</b>, and can help you
strike the right balance between convenience and security. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: .25in; mso-margin-top-alt: auto;"><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">The final
choice remains yours, with the non-custodial Crypto.com Defi Wallet one
of many secure options.<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-16016718847905848002022-02-24T23:03:00.001-08:002022-02-24T23:03:06.776-08:00Free Crypto from Faucetpay<p> </p><p style="background: white; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">If you are looking to earn cryptocurrency for free, there’s a
site that claims you can do so by doing simple tasks. It’s called <a href="https://faucetpay.io/?r=3367057" target="_blank">FaucetPay</a>.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">But
is FaucetPay even legit and worth joining or a scam to stay away from?<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Well,
this FaucetPay review will answer that and all other burning questions about
this site.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">You
will get an inside look and learn about all the details and know exactly what
to expect and if this is really worth investing your time in or not.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; margin-bottom: 15.0pt; mso-line-height-alt: 14.4pt; mso-outline-level: 2;"><span style="color: #3a3a3a; font-family: "Open Sans", sans-serif;"><a href="https://faucetpay.io/?r=3367057" target="_blank">Join now</a></span></p><p class="MsoNormal" style="background: white; margin-bottom: 15.0pt; mso-line-height-alt: 14.4pt; mso-outline-level: 2;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif; font-size: 19.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">What is FaucetPay and what does it offer?<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 14.4pt;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">FaucetPay is mainly a micro wallet that also has Get-Paid-To (GPT)
features, which makes it quite a unique site. But for the purpose of this
review, we will be looking at the GPT aspect of the site. As for its
legitimacy, FaucetPay is indeed a legit site since it will really pay you for
completing simple tasks.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 14.4pt;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Now, to fully understand how this site works, we have to take a closer
look at the earning opportunities it offers. By doing so, you can also get a
snapshot of how well you can earn from this site.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 14.4pt;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">I have, therefore, made a video that gives you an inside look and shows
exactly how you can earn from FaucetPay. You can also read all the details
below the video.<o:p></o:p></span></p><p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 14.4pt;"><a href="https://faucetpay.io/?r=3367057" style="font-family: "Open Sans", sans-serif;" target="_blank">Join now</a></p>
<h3 style="background: white; line-height: 14.4pt; margin-bottom: 15.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm;"><b><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Option 1 – Paid surveys</span></b><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;"><o:p></o:p></span></h3>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">When
you become a member of FaucetPay, the first earning opportunity that will be
accessible to you is their paid surveys. The reason why I say it is the first
accessible opportunity is, the other earning opportunities need to be unlocked
(I will explain later how to unlock them).<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Take
note though that the paid surveys I’m referring to here are the paid surveys
from one of their partner sites (<a data-id="25018" data-type="post" href="https://paidfromsurveys.com/timebucks-review" style="box-sizing: inherit; transition: color 0.1s ease-in-out 0s, background-color 0.1s ease-in-out 0s;" target="_blank"><span style="color: #3498db; text-decoration: none; text-underline: none;">TimeBucks</span></a>).
Their actual paid survey section has to be unlocked like their other earning
opportunities.<o:p></o:p></span></p>
<p style="background: white; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">To access their paid surveys from TimeBucks, you just have to
log in to the site and click the “Earn” option on their menu. Then, click the
Offerwalls. Under the Offerwalls section, you have to click TimeBucks. You will
then see something similar to the photo above.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Just
choose which survey you want to answer and then click the “Answer” button. It
will open a new browser tab where you will have to set up your profile first.
Just answer all the profile questions as honestly as you can. Once you are
done, you will be notified if there are surveys available for you.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">If
there is a survey available, then just proceed with answering it. Once you
finish answering the survey, you will receive the reward promised. If there are
no surveys available for you, then you just have to go to the next available
survey in the FaucetPay offerwall.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">For
every survey you complete, you will be rewarded with USDP. Later on, I will
discuss what you can do with the USDP you’ve earned.<o:p></o:p></span></p><p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><a href="https://faucetpay.io/?r=3367057" style="font-family: "Open Sans", sans-serif;" target="_blank">Join now</a></p>
<span id="option-2-daily-login-bonus" style="-webkit-text-stroke-width: 0px; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"></span>
<h3 style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 14.4pt; margin-bottom: 15.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><b><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Option 2
– Daily login bonus</span></b><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;"><o:p></o:p></span></h3>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Once
a day, you will be able to claim a login bonus. The first time you log in to
the site for the day, you will immediately see something like the photo shown
below.<o:p></o:p></span></p>
<p style="background: white; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">During your first day, the daily login bonus will be set to 1
Reward Point. This will gradually increase when you keep your streak of logging
in to the site. The maximum Reward Point you will get will be 100 Reward
Points.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">So
say for example, you’ve logged in to the site for 15 days straight and the last
bonus you got was 15 Reward Points. Then, the next day, you failed to log in,
thus stopping your streak. The next time you log in to the site, the daily
login bonus you will receive will be back to 1 Reward Point.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">That’s
why it is really important to keep the login streak going to maximize your
earnings. To give you a perspective of how important this bonus is, 1 Reward
Point is equivalent to 1 Satoshi. So, you can potentially earn 100 Satoshis
every day you log in, which is a nice bonus, in my opinion.<o:p></o:p></span></p><p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><a href="https://faucetpay.io/?r=3367057" style="font-family: "Open Sans", sans-serif;" target="_blank">Join now</a></p>
<span id="option-3-offerwalls" style="-webkit-text-stroke-width: 0px; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"></span>
<h3 style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 14.4pt; margin-bottom: 15.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><b><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Option 3
– Offerwalls</span></b><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;"><o:p></o:p></span></h3>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">This
is another earning opportunity you have to unlock. You can only access their
offerwalls if you have made a certain number of faucet payments per month
(usually 5 to 7 faucet payments). So, how do you get faucet payments?<o:p></o:p></span></p>
<p style="background: white; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Well, the first thing you do is sign up to a website or app that
dispenses rewards in the form of <a href="https://www.investopedia.com/terms/s/satoshi.asp" style="box-sizing: inherit; transition: color 0.1s ease-in-out 0s, background-color 0.1s ease-in-out 0s;" target="_blank"><span style="color: #3498db;">Satoshi</span></a> (the smallest unit of a Bitcoin).
In other words, you have to look for other GPT sites and apps that give out
Satoshis as payment through a faucet.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Then,
you have to link that faucet to your FaucetPay account (refer to the photo
above). Once you’ve linked that, you just have to do the tasks offered by those
other sites and apps to get paid. I know, it’s kind of a weird setup because
you will have to work on other sites and apps.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">But,
if you want to unlock their offerwalls, you have to comply with this
requirement. Now, if you’re not familiar with offerwalls, they are basically
in-site/app advertising platforms that are designed to promote websites and
mobile apps.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Offerwalls
do this through their paid offers. These paid offers are simple tasks you can
do to earn rewards. These tasks will usually ask you to answer surveys or
quizzes, play mobile games, sign up for websites, watch videos or ads, and
more.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">To
work on a paid offer, just choose which offerwall you want to work on and click
it. Then, click the offer you are interested in doing. You will then see the
instructions you have to follow to complete the offer. Make sure to read and
understand the instructions before you start because if you miss even just one
step, you will not be able to complete the offer and you won’t get paid.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">When
I was doing my testing, FaucetPay had 8 offerwalls available, which isn’t that
many compared to other GPT sites. So, there aren’t a lot of offers you can do
and you will eventually run out of things to do to earn from. That’s one of the
disadvantages of this site. But, you can still work on the other opportunities
to earn more.<o:p></o:p></span></p><p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><a href="https://faucetpay.io/?r=3367057" style="font-family: "Open Sans", sans-serif;" target="_blank">Join now</a></p>
<span id="option-4-fey-staking" style="-webkit-text-stroke-width: 0px; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"></span>
<h3 style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 14.4pt; margin-bottom: 15.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><b><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Option 4
– FEY staking</span></b><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;"><o:p></o:p></span></h3>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Speaking
of other opportunities, you can also earn by participating in their FEY
staking. If you’ve been working with cryptocurrency for a long time, this will
be very familiar to you. But if this is your first time hearing about the term
“staking”, it’s a form of earning opportunity where you can earn cryptocurrency
by depositing a certain amount for a specific period.<o:p></o:p></span></p>
<p style="background: white; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">In FaucetPay’s case, the lock-in period for their staking is 70
days and it will involve the token called FEY (or <a href="https://coinmarketcap.com/currencies/feyorra/" style="box-sizing: inherit; transition: color 0.1s ease-in-out 0s, background-color 0.1s ease-in-out 0s;" target="_blank"><span style="color: #3498db;">Feyorra</span></a>). So, how can you get this token?
Well, you can use any cryptocurrency to trade for this token. And the good
thing is, you can just do it inside FaucetPay since they have a trading
platform you can use.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">For
example, you can convert your Bitcoin to FEY tokens. That’s usually the route
members take when they want to participate in the staking. Once you’ve converted
your Bitcoin to FEY tokens, then you just have to choose the kind of staking
you want to participate in.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">I
would suggest you join the one that is almost close to full so that you don’t
have to wait long for the staking period to start. Once it starts, you just
have to wait 70 days to receive your reward. It kind of works like putting
money in the bank and waiting for the interest to be credited to your account.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Take
note that the FEY token you’ve placed in staking can’t be withdrawn until the
staking period is over. Before you decide to participate in this earning
opportunity, I would suggest you read up first on what <a href="https://www.coinbase.com/learn/crypto-basics/what-is-staking" style="box-sizing: inherit; transition: color 0.1s ease-in-out 0s, background-color 0.1s ease-in-out 0s;" target="_blank"><span style="color: #3498db;">crypto staking</span></a> is really all about.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Because
you can also potentially end up losing money by doing this and you need to know
exactly what you are getting into.<o:p></o:p></span></p><p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><a href="https://faucetpay.io/?r=3367057" style="font-family: "Open Sans", sans-serif;" target="_blank">Join now</a></p>
<span id="option-5-multiply-btc-games" style="-webkit-text-stroke-width: 0px; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"></span>
<h3 style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 14.4pt; margin-bottom: 15.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><b><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Option 5
– Multiply BTC games</span></b><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;"><o:p></o:p></span></h3>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">FaucetPay
has a section called Multiply BTC.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">This
is a section where you can potentially multiply your earnings. However, this
also comes with a risk.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">You
can bet your earnings and it offers several games where you can do this. At the
time of writing this review, the games you can play are Dice, Roulette, Limbo,
Crashes, and Plinko.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">All
of the games are very simple and easy to play and they have easy-to-follow
instructions on the website. You just choose a bet and play the game and if you
win, you will get a reward but if you lose, you will lose your bet.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">The
higher amount you bet, the more you can potentially win, but then, of course,
the risks will also be higher.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">So
this is not a good option for all and only a good option if you like gambling –
but be careful as your earnings can quickly disappear if you are not lucky.<o:p></o:p></span></p><p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><a href="https://faucetpay.io/?r=3367057" style="font-family: "Open Sans", sans-serif;" target="_blank">Join now</a></p>
<span id="option-6-referral-program" style="-webkit-text-stroke-width: 0px; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"></span>
<h3 style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; line-height: 14.4pt; margin-bottom: 15.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><b><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Option 6
– Referral program</span></b><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;"><o:p></o:p></span></h3>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">Lastly,
you can earn bonus rewards by participating in their referral program. If you
are not familiar with what a referral program is, it is basically an
opportunity where you can earn by inviting other people to join the site.<o:p></o:p></span></p>
<p style="background: white; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">All you have to do is share your invite link with the person you
want to invite and once they sign up to FaucetPay using your link, they will
become your referral.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">But,
before you can earn from their referral program, your referral must become an
active member of the site. That means they have to complete any of the earning
opportunities offered by FaucetPay. For example, if they complete a paid offer
from one of their offerwalls, you will receive a 25% commission which will be
shouldered by FaucetPay.<o:p></o:p></span></p><p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><a href="https://faucetpay.io/?r=3367057" style="font-family: "Open Sans", sans-serif;" target="_blank">Join now</a></p>
<p style="-webkit-text-stroke-width: 0px; background: white; box-sizing: inherit; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 14.4pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; orphans: 2; overflow-wrap: break-word; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #3a3a3a; font-family: "Open Sans",sans-serif;">So,
make sure to invite people that are really interested in earning from
FaucetPay.<o:p></o:p></span></p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com8tag:blogger.com,1999:blog-5043166776166276009.post-18197307649448731242022-02-24T22:33:00.001-08:002022-02-24T22:33:16.018-08:00Introduction to Options<p></p><p class="MsoNormal" style="line-height: 33.75pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 2;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 27.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">What is an Option?<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"> Options are not to be confused </span><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">with futures, as they <span style="color: #2b2b2b;">are
two separate financial instruments.<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">The option seller has the corresponding obligation to fulfill the
transaction – to sell or buy – if the buyer (owner) ‘exercises’ the option. The
underlying asset/instrument could be a stock, bond, foreign currency,
commodity, or any other traded instrument. Exercising means utilising the right
to buy or sell the underlying security. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Usually, an option contract should include the following specifications:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Type: whether the option holder has the right to buy (a call option) or
the right to sell (a put option).<o:p></o:p></span></p>
<ul type="disc">
<li class="MsoNormal" style="color: #2b2b2b; line-height: 24.0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Underlying asset and
quantity:</span></b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"> the
quantity and the underlying asset(s) (e.g.: 100 shares of Apple.Inc stock)<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #2b2b2b; line-height: 24.0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Strike price:</span></b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"> the stated price where
the buyer will exercise the option<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #2b2b2b; line-height: 24.0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Expiry date:</span></b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"> the last date the option
can be exercised<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #2b2b2b; line-height: 24.0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Settlement terms:</span></b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"> for instance, whether
the option seller (writer) must deliver the actual asset on exercise, or
whether he/she will simply tender the equivalent cash amount<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #2b2b2b; line-height: 24.0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Option premium:</span></b><span style="font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"> the total amount you
pay for the option.<o:p></o:p></span></li>
</ul>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 33.75pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 2;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 27.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Why Use Options?<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">There are two types of options: Call and Put.</span></b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"> Call options
allow the owner to buy a specified amount of underlying asset at a fixed price
within a specific period of time while put options allow the holder to sell a
specified amount of underlying asset at the strike price within a specific timeframe.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">An option can also be categorised by American or European style.</span></b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"> American
options can be exercised any time before the expiration date of the option,
while European options can only be exercised on the expiration date. When you
buy an option, the purchase price is called the premium. If you sell your
option, the premium is the amount you receive. The premium isn’t fixed and may
fluctuate based on market conditions. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Aside from providing investors with the right to buy or sell underlying
assets, there are various use cases for options</span><sup><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">1</span></sup><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 28.5pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 3;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 21.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Versatile
securities<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">The advantage of options is that you are not limited to making a profit
only when the market goes up. Because of the versatile nature of options, you
can also make money when the market goes down or even when it moves sideways.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 28.5pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 3;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 21.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Speculation<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">If you buy an options contract, you are betting on the movement of the
security. This kind of bet requires extensive knowledge of financial markets
and a high risk tolerance.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 28.5pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 3;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 21.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Hedging<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Options are used as an insurance policy to protect your stocks against a
potential downturn.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 28.5pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 3;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 21.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Options to attract
employees<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Many companies use stock options as a way to attract and keep talented
employees.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 33.75pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 2;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 27.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Different Types of
Options<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">As mentioned before, the strike price for an option is the price at
which the underlying asset is bought or sold if the option is exercised. <b>The
relationship between the strike price and the actual price of a stock
determines, in the unique language of options, whether the option is
in-the-money (ITM), at-the-money (ATM) or out-of-the-money (OTM)</b></span><b><sup><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">2</span></sup></b><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">.</span></b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 28.5pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 3;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 21.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">In the money (ITM)<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">For call options, in-the-money means that strike price is below the
actual stock price. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><i><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Example: </span></i><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">An investor purchases a call option at the $95 strike price for XYZ that
is currently trading at $10. The investor’s position is in the money by $5. The
call option gives the investor the right to buy the equity at $95. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">For put options, in-the-money means that strike price is above the
actual stock price. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><i><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Example: </span></i><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">An investor purchases a put option at the $110 strike price for XYZ that
is currently trading at $100. This investor position is in-the-money by $10.
The put option gives the investor the right to sell the equity at $110.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 28.5pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 3;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 21.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">At the money (ATM)<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">For both put and call options, the strike and the actual stock prices
are the same.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 28.5pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 3;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 21.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Out-of-the-money
(OTM) <o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">An out-of-the-money call option strike price is above the actual stock
price. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><i><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Example:</span></i><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"> An investor purchases an out-of-the-money call option at the
strike price of $110 for XYZ that is currently trading at $100. This investor’s
position is out-of-the-money by $10. An out-of-the-money put option strike
price is below the actual stock price. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><i><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Example:</span></i><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"> An investor purchases an out-of-the-money put option at the strike
price of $95 for XYZ that is currently trading at $100. This investor’s
position is out of the money by $5.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 28.5pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 3;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 21.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Payoff<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">You have now familiarised yourself with option basics. Now, let’s take a
look at how option works and how the payoff can be derived. Payoff diagrams are
charts that illustrate the profit/loss of the option as its underlying price
changes, and the conditions include: long-call, short-call, long-put, and
short-put.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 28.5pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 3;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 21.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Long-Call<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Bob is bullish on Apple Inc. because he believes the new iPhone will
have more functions and will subsequently give the stock a good bump.
Rather than buying shares, Bob is looking at a long position with call options,
as they limit his downside while still allowing unlimited gains if the
stock price blows up. Here are some facts about his position and what the
payoff will look like at various stock prices:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Given: option premium per share = $2, option strike price=$100<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">The <b>breakeven point </b>is the stock price at which an
investor’s net profit will be zero:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Breakeven stock price = Strike price + premium<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">In this case, the breakeven price is $100 + $2 = $102. Another feature
to note is that if the stock price is below the strike price, Bob will just let
the options expire without using them and his losses will be limited to the
premium he paid for the options. On the other hand, the profits are unlimited
as the price goes higher than $102. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Here is a formula:</span></b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Call payoff per share = MAX (stock price – strike price, 0) – premium
per share<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">At a stock price of $98, MAX ($98 – $100, 0) – $2 = 0 – $2 = $2 per share
loss<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">At a stock price of $105, MAX ($105 – $100, 0) – $2 = $5 – $2 = $3
profit per share<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 28.5pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 3;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 21.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Short-Call<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">The writer (seller) of the call option takes a short or opposite
position. His payoff graph is the opposite of the long-call we mentioned.
Profits are limited to the premium he collects when the strike price exceeds
the stock price and the calls are allowed to lapse. Above the strike price he
faces increasing losses as the stock price increases. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">The payoff formula is:</span></b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Short call payoff per share = premium per share – MAX (0, share price –
strike price)<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 28.5pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 3;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 21.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Long-Put<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">In this circumstance, Bob is bearish on Apple.Inc stock as he feels that
the new iPhone may be overhyped due to public anticipation. He might therefore
buy a long-put option of Apple stock, through which he gains interest as long
as the stock price drops below the breakeven price. His loss is also limited to
the paid premium and the gain can reach a maximum when the stock price drops to
0.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Given: option premium per share = $2, option strike price=$100<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Breakeven stock price = Strike price – Premium<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">In this case, the breakeven price is $100 – $2 = $98. If the stock price
is above the strike price, Bob will just let the options expire without using
them and his losses will be limited to the premium he paid for the options. On
the other hand, his profits are also limited as the price can go lower than $98
and reach the maximum when the price is zero. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Here is a formula:</span></b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Put payoff per share = MAX (strike price – stock price, 0) – premium per
share<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">At a stock price of $103, MAX ($100 – $103, 0) – $2 = 0 – $2 = $2 per
share loss<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">At a stock price of $95, MAX ($100 – $95, 0) – $2 = $5 – $2 = $3 profit
per share<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 28.5pt; margin-bottom: 18.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 24.0pt; mso-outline-level: 3;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 21.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Short-Put<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">The writer (seller) of the put option takes a short or opposite
position. His payoff graph is the opposite of the long-put position illustrated
above. Profits are limited to the premium he collects when the stock price
exceeds the strike price and the put options are allowed to lapse. Below the
strike price he faces increasing losses as the stock price decreases. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">The payoff formula is:</span></b><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 24.0pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;"><span style="color: #2b2b2b; font-family: "Segoe UI",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-MY;">Short put payoff per share = premium per share – (MAX (0, strike
price-share price)<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p><br /><p></p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com2tag:blogger.com,1999:blog-5043166776166276009.post-49778881540625107522022-02-22T00:05:00.000-08:002022-02-22T00:05:17.392-08:00What is the Crypto J-Curve?<p> </p><h2 id="what-is-the-crypto-j-curve" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 36px; line-height: 45px; margin: 32px 0px 24px;">What is the Crypto J-Curve?</h2><div class="wp-block-image" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol";"><figure class="aligncenter" style="box-sizing: border-box; font-family: inherit; margin: 0px 0px 24px;"><div class="gatsby-image-wrapper gatsby-image-wrapper-constrained wp-image-9352 inline-gatsby-image-wrapper" data-gatsby-image-wrapper="" data-reactroot="" style="box-sizing: border-box; display: inline-block; max-width: 100%; overflow: hidden; position: relative; vertical-align: top; width: 806px;"><div style="box-sizing: border-box; font-size: 16px; max-width: 1024px;"><img alt="" aria-hidden="true" role="presentation" src="data:image/svg+xml;charset=utf-8,%3Csvg height='715' width='1024' xmlns='http://www.w3.org/2000/svg' version='1.1'%3E%3C/svg%3E" style="border-style: none; box-sizing: border-box; display: block; height: 562.781px; inset: 0px; margin: 0px; max-width: 100%; object-fit: cover; padding: 0px; position: static; width: 806px;" /></div><div aria-hidden="true" data-placeholder-image="" style="box-sizing: border-box; font-size: 16px; height: 562.781px; left: 0px; opacity: 0; position: absolute; top: 0px; transition: opacity 500ms linear 0s; width: 806px;"></div><img alt="crypto J curve" data-gatsby-image-ssr="" data-main-image="" data-wp-inline-image="2" decoding="async" height="224" loading="eager" sizes="(min-width: 1024px) 1024px, 100vw" src="https://content-hub-static.crypto.com/static/202ee02e1c23f6762a8efb250b7ed7a1/29322/image3.png" srcset="https://content-hub-static.crypto.com/static/202ee02e1c23f6762a8efb250b7ed7a1/04725/image3.png 256w,https://content-hub-static.crypto.com/static/202ee02e1c23f6762a8efb250b7ed7a1/19cea/image3.png 512w,https://content-hub-static.crypto.com/static/202ee02e1c23f6762a8efb250b7ed7a1/29322/image3.png 1024w" style="border-style: none; box-sizing: border-box; height: 562.781px; inset: 0px; margin: 0px; max-width: none; object-fit: cover; opacity: 1; padding: 0px; position: absolute; transform: translateZ(0px); transition: opacity 250ms linear 0s; width: 806px; will-change: opacity;" width="320" /></div></figure></div><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">The crypto J-curve models how the market values a cryptocurrency over time. Usually, upon an ICO, or its initial listing on a major exchange, enthusiasm for a crypto asset is high. It typically continues to moon (or boom) for a while. Yet, during this time, the utility value of the coin is usually minimal, or even non-existent.</p><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">As the coin gets utilised by others, potholes in the road appear, which the developers tried to patch up as quickly as possible. But enthusiasm wanes, and with that the value of the coin. However, as improvements are made to the protocol, things tick up again, drawing out a pattern in the shape of a ‘J’.</p><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">We introduced the equation of exchange in the post on crypto asset valuation. This model was conceived by Chris Burniske. However, he didn’t stop there and has extended the model further to form the ‘Crypto-J-curve’ hypothesis.</p><div style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; line-height: 29.7px; margin: 32px 0px 24px; text-align: left;"><span style="box-sizing: border-box; font-size: medium; font-weight: normal;">Let’s go into this step by step so that you can understand how market sentiment influences the value of your crypto assets.</span></div><h3 id="step-1-utility-management" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 28px; line-height: 38px; margin: 32px 0px 24px;">Step 1: Utility Management</h3><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">Burniske uses the discounted present value to measure the token utility. He assumes a specific maturity date, T, then proxies the token utility value by that date (in USD), finally discounting it back to today.</p><div style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 22px; line-height: 29.7px; margin: 32px 0px 24px; text-align: left;"><span style="font-size: 18px;">Readers should note that the utility measurement itself is futuristic. Future? Come again, Marty: In other words, if the token’s utility is considered immature today, we should consider its future utility and discount it back to get a fair valuation for its current price.</span></div><h3 id="step-2-cuv-and-deuv-and-what-they-are" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 28px; line-height: 38px; margin: 32px 0px 24px;">Step 2: CUV and DEUV, and What They Are</h3><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">Burniske further decomposed the token price into ‘Current Utility Value’ (CUV) and ‘Discounted Expected Utility Value’ (DEUV).</p><h4 id="the-idea-is-that-a-token-s-value-consists-of-both" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 22px; line-height: 29.7px; margin: 32px 0px 24px;"><span style="box-sizing: border-box; font-weight: bolder;">The idea is that a token’s value consists of both:</span></h4><ul style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px;"><li style="box-sizing: border-box;">the value as if it can be used today</li><li style="box-sizing: border-box;">the value as if it will be widely adopted in the future</li></ul><h2 id="the-crypto-j-curve-in-action" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 36px; line-height: 45px; margin: 32px 0px 24px;">The Crypto J-Curve in Action</h2><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">Burniske believes that the enthusiasm for a crypto asset will initially be high and typically continues to grow for a while. In this period, the CUV of the asset is minimal, or non-existent if there’s no protocol. The asset is then largely composed of DEUV.</p><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">As the crypto assets progress through time, the enthusiasm may wane, weighing on the DEUV. Since the system is not yet mature, the CUV is low, and a high % of CUV presents a low valuation price.</p><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">The system will gradually mature with increased use, and the CUV of a crypto asset grows quietly. A growing CUV can occur even as the DEUV of the token continues to compress. If the market is bearish enough, the price of the asset may compress DEUV all the way to zero, leaving only CUV, and a drastically diminished price. Potentially, the market may even discount the asset to the point of trading below CUV, somewhat akin to a stock trading beneath book value.</p><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">The system will eventually reach a mature point where both CUV and DEUV are expanding, completing the whole market cycle.</p><div class="wp-block-image" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 16px;"><figure class="aligncenter" style="box-sizing: border-box; font-family: inherit; margin: 0px 0px 24px;"><div class="gatsby-image-wrapper gatsby-image-wrapper-constrained wp-image-9352 inline-gatsby-image-wrapper" data-gatsby-image-wrapper="" data-reactroot="" style="box-sizing: border-box; display: inline-block; max-width: 100%; overflow: hidden; position: relative; vertical-align: top; width: 806px;"><div aria-hidden="true" data-placeholder-image="" style="box-sizing: border-box; height: 562.781px; left: 0px; opacity: 0; position: absolute; top: 0px; transition: opacity 500ms linear 0s; width: 806px;"><span style="font-size: 36px;">Limitations and Caveats</span></div></div></figure></div><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">Although the valuation model and the Crypto-J-curve provides a practical framework for analysing crypto assets, we would like to point out some problems and concerns with the model:</p><h4 id="1-arbitrary-maturity-date-chosen" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 22px; line-height: 29.7px; margin: 32px 0px 24px;">1. Arbitrary maturity date chosen</h4><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">In Burniske’s example, he has used 30 years as maturity date. What if the token is more short or mid term focused? With a high discount rate (e.g. 30%), picking 10 years vs 30 years can significantly affect the result due to discounting.</p><h4 id="2-only-single-use-case-are-allowed" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 22px; line-height: 29.7px; margin: 32px 0px 24px;">2. Only single use case are allowed</h4><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">Burniske assumed only one use case in his example. What if the token has more than one utility or use case?</p><h4 id="3-it-is-hard-to-measure-utility-value-in-usd" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 22px; line-height: 29.7px; margin: 32px 0px 24px;">3. It is hard to measure utility value in USD</h4><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">Many arbitrary assumptions were introduced, including target addressable market and adoption curve.</p><h4 id="4-an-arbitrary-discount-rate" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 22px; line-height: 29.7px; margin: 32px 0px 24px;">4. An arbitrary discount rate</h4><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">The discount rate has significant impact on the discounted utility, yet no sound methodology for calculating the discount rate is provided. Burniske subjectively picks 30% as the discount rate in his example.</p><h4 id="5-technological-soundness-is-not-considered" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 22px; line-height: 29.7px; margin: 32px 0px 24px;">5. Technological soundness is not considered</h4><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">No factors are considering the technological soundness/platform and team capabilities.</p><h4 id="6-the-probability-of-failure" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 22px; line-height: 29.7px; margin: 32px 0px 24px;">6. The probability of failure</h4><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">Projects may fail due to technology, execution, accidents, etc.</p><h2 id="is-the-crypto-j-curve-useful" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 36px; line-height: 45px; margin: 32px 0px 24px;">Is the Crypto J Curve Useful?</h2><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">To conclude, Burniske provided one of the first crypto asset valuation models, which may provide directional insights for token valuation. It won’t give you a good estimate for exact token prices, but it has use as as a general roadmap for a token’s development.</p><h2 id="how-to-fully-understand-the-value-of-your-crypto" style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 36px; line-height: 45px; margin: 32px 0px 24px;">How to Fully Understand the Value of Your Crypto</h2><p style="background-color: #f1f2f2; box-sizing: border-box; color: #2b2b2b; font-family: "Acumin Pro", acumin-pro, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 18px; line-height: 32px; margin-block: 0px; margin-bottom: 24px;">This post on the Crypto J-Curve completes a four-part series we created on cryptoasset valuation. You can also learn the 101 of crypto valuation, TradFi asset valuation tools, and other cryptoasset valuation models in the other pieces of our series for a deep dive and DYOR (do your own research) on what your crypto is really worth.</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-41818451215943284032021-10-25T22:59:00.000-07:002021-10-25T22:59:03.089-07:00Meme Coins<p>Dogecoin, the first meme-coin, launched in 2013, was once considered an ironic gimmick and has now gained quite a reputation, becoming the 10th largest cryptocurrency with a $32.54 billion market capital on October 19, according to CoinMarketCap.</p><p>However, the pioneering meme currency has faced stiff competition from Shiba Inu and other floki-themed coins. So what's the fuss about these new floki coins? But first, let's understand what meme coins are.</p><div><div>Meme coins are cryptocurrencies, inspired by popular social media jokes, sarcasms and puns.</div><div><br /></div><div>Currently there are about 124 meme coins, according to the Coinmarketcap website. Dogecoin's success in 2021 burgeoned the birth of many more meme coins imitating Doge.</div><div><br /></div><div>* Meme coins are created with no specific use or inherent value, to gain quick high profits. In comparison, mainstream cryptocurrencies like Bitcoin are created with specific technology to boost trading and transactions in the crypto market.</div><div><br /></div><div>* They are way more volatile than other cryptocurrencies as whales can lead to sudden rise and fall in their prices.</div><div><br /></div><div>* For instance, Shiba Inu rose 230 per cent in 7 days following the sale of 6.3 trillion Shib tokens in the first 2 days of October.</div><div><br /></div><div>* Their performance and fame are mostly linked with social media support and hype created by their influencers and they are highly community-driven.</div><div><br /></div><div>* Many meme coins have unlimited stock that have a long-term impact on their prices.</div><div><br /></div><div>* These coins are launched quickly, meaning they can be lost in the long term.</div><div><br /></div><div>* According to the CoinMarketCap website, DogelonMars, MonaCoin and HogeFinance are among the top 10 cryptocurrencies in terms of market capital after Dogecoin and Shiba Inu on October 19.</div><div><br /></div><div><b>Floki-themed cryptocurrencies</b></div><div><br /></div><div>Floki- themed cryptocurrencies are dog-meme coins with the name Floki created after Elon Musk tweeted to name his Shiba Inu dog Flokifrunk on June 25. Some of the floki-themed coins include Shiba Floki, Floki Shiba, Flokinomics, Floki Inu and Baby Floki Inu.</div><div><br /></div><div><b>Dogecoin-killer</b></div><div><br /></div><div>Shiba Inu was launched in 2020 as a self-proclaimed killer of Dogecoin and aims to become an Ethereum-based substitute of Doge.</div><div><br /></div><div>* Shiba Inu was created by a pseudonymous founder Ryoshi Inu.</div><div><br /></div><div>* The meme coin was created to capitalize on the soaring popularity of the leading Dogecoin.</div><div><br /></div><div>* The meme-coin has the second highest market capital of $11.12 billion after Dogecoin on October 19, according to CoinMarketCsp.</div><div><br /></div><div>* It has three tokens namely Leash, Bone and Shib and it's retail demand has increased since the initial listing.</div><div><br /></div><div>Shiba Inu was recently listed on India's oldest crypto exchange ZebPay on October 13 for trading and investing.</div><div><br /></div><div>The triggering effect of the tweets</div><div><br /></div><div>Though tweets are not meant to be taken as a price determinant for cryptos, Musk's tweets have been seen to trigger the prices of the meme coins since the Dogecoin days.</div><div><br /></div><div>* The very famous tweet of sending SpaceX satellite Doge-1 to the moon on May 10, 2021 helped gain Dogecoin billions of dollars.</div><div><br /></div><div>* Musk's tweet on May 19 2021– 'How much is that Dogecoin on the window'-- almost doubled the price of Dogecoin from $ 0.29 to $0.40 and Bitcoin fell below $40, 000 on the same day following the frantic sale of Doge.</div><div><br /></div><div>* Musk's September 13 tweet 'Floki has arrived' with the pic of his Shiba Inu puppy, surged the price of Shiba Floki coins to nearly 958.9 and Floki Inu rose 60 per cent in 24 hours.</div><div><br /></div><div>* The recent tweet on October 4, with a picture of Musk's puppy Floki on the hood of his Tesla car shot up the prices of Shib coins to 55 per cent and 22.13 per cent increase in Floki Inu's price.</div></div>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-20416049212624264012021-10-25T00:52:00.004-07:002021-10-25T01:02:27.810-07:00Shiba Inu Coin (SHIB)<p> <span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;">Shiba inu (SHIB) is an Ethereum-based ERC-20 token that has</span><span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;"> </span>risen in popularity<span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;"> </span><span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;">this year, largely because of its dog-themed ecosystem, speculation on its price by retail investors and strong community engagement. The official</span><span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;"> </span>Shib Twitter account<span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;">, for example, has over 1.2 million followers – more than leading crypto companies such as</span><span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;"> </span>Cardano<span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;">,</span><span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;"> </span>Kraken<span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;"> </span><span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;">and</span><span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;"> </span>Solana<span style="background-color: white; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 18px; letter-spacing: 0px;">.</span></p><div class="textstyles__StyledWrapper-kb1m9y-0 gIMobL" style="background-color: white; box-sizing: border-box; color: #262626; font-family: "Neue Haas Grotesk Text Pro", sans-serif; font-size: 16px;"><div class="at-text" style="box-sizing: border-box;"><div class="typography__StyledTypography-owin6q-0 cpyiON" style="box-sizing: border-box; font-size: 18px; letter-spacing: 0px; line-height: 30px; margin: 0px;"><p style="box-sizing: border-box; margin-block: 0px; margin-bottom: 20px;">The digital asset was inspired by the Japanese breed of dog of the same name, which sparked a viral meme trend in 2013 and subsequently led to the creation of the infamous dogecoin cryptocurrency. Shiba inu, along with dogecoin and the hundreds of other pet-inspired digital assets, have become collectively known in the industry as “meme coins.”</p><p style="box-sizing: border-box; margin-block: 0px; margin-bottom: 20px;">Ordinarily, a meme coin offers owners little to no utility compared with more established cryptocurrencies such as bitcoin and ether. In the case of shiba inu, however, there seems to be a legitimate attempt by the development team to provide more value to SHIB holders, including launching a decentralized exchange in July.</p><p style="box-sizing: border-box; margin-block: 0px; margin-bottom: 20px;">Notably, the desire to provide more utility to users has seen the self-proclaimed “doge killer” become the second-most popular meme coin in the market. And although the market capitalization of dogecoin is three times that of shiba inu at press time, the underdog project has managed to create and build up a large community in less than two years.</p><div class="headingstyles__StyledWrapper-sc-1nwzlro-0 ileefY" style="box-sizing: border-box; font-size: 16px;"><div class="at-heading" style="box-sizing: border-box;"><h2 class="typography__StyledTypography-owin6q-0 klKMNU" style="box-sizing: border-box; font-family: "Display Narrow Bold Roslindale"; font-size: 42px; letter-spacing: 0.03em; line-height: 52px; margin: 40px 0px 20px;">Key features of shiba inu</h2></div></div><div class="textstyles__StyledWrapper-kb1m9y-0 gIMobL" style="box-sizing: border-box; font-size: 16px;"><div class="at-text" style="box-sizing: border-box;"><div class="typography__StyledTypography-owin6q-0 cpyiON" style="box-sizing: border-box; font-size: 18px; letter-spacing: 0px; line-height: 30px; margin: 0px;"><p style="box-sizing: border-box; margin-block: 0px; margin-bottom: 20px;">So other than being another doggy-themed cryptocurrency, what is the shib coin all about?</p></div></div></div><div class="textstyles__StyledWrapper-kb1m9y-0 gIMobL" style="box-sizing: border-box; font-size: 16px;"><div class="at-text" style="box-sizing: border-box;"><div class="typography__StyledTypography-owin6q-0 cpyiON" style="box-sizing: border-box; font-size: 18px; letter-spacing: 0px; line-height: 30px; margin: 0px;"><p style="box-sizing: border-box; margin-block: 0px; margin-bottom: 20px;">The first notable thing about Shiba Inu is its total supply. A total of 1 quadrillion SHIB tokens were minted during its official launch in 2020. A quadrillion is a number followed by 15 zeros. Some 50% of the supply of shiba inu was locked in Uniswap SHIB/ETH liquidity pool – a decentralized exchange where users deposit pairs of assets into liquidity pools that other investors can trade against. That is known as an automated market maker system.</p><p style="box-sizing: border-box; margin-block: 0px; margin-bottom: 20px;">The other 50% of shib token’s supply was donated to Ethereum’s founder, Vitalik Buterin, who burned a vast majority of them by sending the tokens to a dead crypto wallet address. The remaining tokens (worth $1.2 billion at the time) were donated to an Indian COVID-19 relief cause and other charities.</p><div class="textstyles__StyledWrapper-kb1m9y-0 gIMobL" style="box-sizing: border-box; font-size: 16px;"><div class="at-text" style="box-sizing: border-box;"><div class="typography__StyledTypography-owin6q-0 cpyiON" style="box-sizing: border-box; font-size: 18px; letter-spacing: 0px; line-height: 30px; margin: 0px;"><p style="box-sizing: border-box; margin-block: 0px; margin-bottom: 20px;">The Shiba Inu universe also consists of a decentralized exchange, called Shibaswap, and two other tokens, “LEASH” and “BONE,”</p></div></div></div><div class="textstyles__StyledWrapper-kb1m9y-0 gIMobL" style="box-sizing: border-box; font-size: 16px;"><div class="at-text" style="box-sizing: border-box;"><div class="typography__StyledTypography-owin6q-0 cpyiON" style="box-sizing: border-box; font-size: 18px; letter-spacing: 0px; line-height: 30px; margin: 0px;"><p style="box-sizing: border-box; margin-block: 0px; margin-bottom: 20px;">Finally, the community is also championing a rescue campaign for Shiba Inu dogs. All you need to do is make purchases on Amazon through smile.amazon.com and select Shiba Inu Rescue Association (a 501(c)3 as your preferred nongovernmental organization). This will allow a percentage of your purchase to be donated to a cause focusing on helping Shiba Inu dogs in need.</p></div></div></div></div></div></div></div></div></div>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-56206401378808429802021-10-21T00:59:00.007-07:002021-10-24T19:31:33.349-07:005分钟学投资 01 财务自由<p> <span face="Roboto, Arial, sans-serif" style="background-color: #f9f9f9; color: #030303; font-size: 14px; letter-spacing: 0.2px; white-space: pre-wrap;">让你了解什么是财务自由</span></p><p><span style="background-color: #f9f9f9; font-size: 14px; letter-spacing: 0.2px; white-space: pre-wrap;"><span face="Roboto, Arial, sans-serif" style="color: #030303;">请订阅Youtube频道
<a href="https://www.youtube.com/channel/UCJy2siT-ElAOHiLuKeoCr2A">https://www.youtube.com/channel/UCJy2siT-ElAOHiLuKeoCr2A</a>
以观看每天更新全部周文强老师系列
</span></span></p>
<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/ozV3Ci0qdlA" title="YouTube video player" width="560"></iframe>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-66241827167597190492021-10-20T01:35:00.003-07:002021-10-20T01:36:22.677-07:00What is NFT?<p> </p><h1 id="what-is-nft" style="background-color: white; box-sizing: border-box; color: #212529; font-family: Avenir, "Trebuchet MS", Arial, Roboto, Helvetica, "Open Sans", "Segoe UI", sans-serif; font-size: 2.5rem; line-height: 1.2; margin-bottom: 2rem; margin-top: 0px;">What is NFT?</h1><p style="background-color: white; box-sizing: border-box; color: #6b7282; font-family: Avenir, "Trebuchet MS", Arial, Roboto, Helvetica, "Open Sans", "Segoe UI", sans-serif; font-size: 16px; margin-bottom: 2rem; margin-top: 0px;">NFT, or Non-Fungible Token, is a concept that is related to fungible tokens. If we compare it to the real world, fungible tokens are like currency: if you have $500 USD, you can divide it up, spend it in parts, get spare change, and continue to make more purchases with the change you receive. On the other hand, non-fungible tokens are unique and indivisible. Some examples could be: artworks, treasures in videogames, property deeds, or even certificates to prove wine provenance. When you trade a non-fungible token, you no longer own it, and since it is indivisible, there is no concept of spare change.</p><p style="background-color: white; box-sizing: border-box; color: #6b7282; font-family: Avenir, "Trebuchet MS", Arial, Roboto, Helvetica, "Open Sans", "Segoe UI", sans-serif; font-size: 16px; margin-bottom: 2rem; margin-top: 0px;">NFTs are issued on distributed ledgers on the blockchain. As such, as long as the ledger and the chain still exist, the record stating your NFT ownership will be intact. It will not be tampered with, removed, or disappear. When an NFT is issued, the contract will contain identifying information of the token including: the ID of the token, and a way to link to the assets it represents. These are the 2 main reasons why NFTs are optimal to prove a person’s ownership of an asset:</p><ol style="background-color: white; box-sizing: border-box; color: #6b7282; font-family: Avenir, "Trebuchet MS", Arial, Roboto, Helvetica, "Open Sans", "Segoe UI", sans-serif; font-size: 16px; margin-bottom: 1rem; margin-top: 0px;"><li style="box-sizing: border-box;">The information is unalterable once it is on the blockchain</li><li style="box-sizing: border-box;">NFT tokens are intrinsically unique, immutable, and indivisible</li></ol><p style="background-color: white; box-sizing: border-box; color: #6b7282; font-family: Avenir, "Trebuchet MS", Arial, Roboto, Helvetica, "Open Sans", "Segoe UI", sans-serif; font-size: 16px; margin-bottom: 2rem; margin-top: 0px;">Similarly, NFT’s unique properties allow for it to be used in videogames to represent treasures or characters in the game. The most prominent example would be that of CryptoKitties. <a href="https://www.cryptokitties.co/" style="background-color: transparent; box-sizing: border-box; color: #20559f; text-decoration-line: none;" target="_blank">CryptoKitties</a> is a blockchain game on Ethereum that allows players to buy, breed, collect and sell virtual cats. In the art world, NFTs can be applied to paintings, music copyrights, and various collectibles. A notable example would be encryption artist <a href="https://onlineonly.christies.com/s/beeple-first-5000-days/lots/2020" style="background-color: transparent; box-sizing: border-box; color: #20559f; text-decoration-line: none;" target="_blank">Beeple’s sale of their work: EVERYDAYS: THE FIRST 5000 DAYS</a>, that was auctioned off for $69.34 million USD. NFTs are also commonly used in other industries in the form of digital certificates, identity authentication, and domain names.</p><p style="background-color: white; box-sizing: border-box; color: #6b7282; font-family: Avenir, "Trebuchet MS", Arial, Roboto, Helvetica, "Open Sans", "Segoe UI", sans-serif; font-size: 16px; margin-bottom: 2rem; margin-top: 0px;">So, how did the concept of NFTs come about? It started towards the end of 2017 when Dieter Shirley, CTO of CryptoKitties, released EIP-721 (Ethereum Implementation Proposal 721.) EIP-721 was different from ERC20 standard, which was very popular at the time and had highly sought-after ICO tokens. EIP-721 proposed, for the first time, tokens that were not interchangeable. Soon after, the concept of NFTs started to gain traction in different applications, including CryptoKitties. Nowadays, it is increasingly common to see NFT auctions hitting record numbers in the news.</p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com2tag:blogger.com,1999:blog-5043166776166276009.post-68205518544451825872020-11-08T17:55:00.004-08:002020-11-08T17:55:46.552-08:00How to Calculate Return on Investment (ROI)<p> </p><p class="MsoNormal" style="background: white; line-height: 42.0pt; margin-bottom: 12.0pt; mso-outline-level: 1; vertical-align: baseline;"><b><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 36.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 18.0pt;">How to Calculate Return on Investment
(ROI)<o:p></o:p></span></b></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">ROI is a </span><span style="color: black; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-color-alt: windowtext; mso-fareast-font-family: "Times New Roman";">way to measure an
investment's performance. As you'd expect, it's also a great way to compare the
profitability of different investments. Naturally, an investment with a higher
ROI is better than an investment with a lower (or negative) ROI. Curious how to
measure this for your own portfolio? Let's read on.</span><span style="font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 30.0pt; margin-bottom: 24.0pt; mso-outline-level: 2; vertical-align: baseline;"><b><span style="color: black; font-family: "Arial",sans-serif; font-size: 24.0pt; mso-color-alt: windowtext; mso-fareast-font-family: "Times New Roman";">Introduction</span></b><b><span style="font-family: "Arial",sans-serif; font-size: 24.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></b></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 0cm; vertical-align: baseline;"><span style="color: black; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-color-alt: windowtext; mso-fareast-font-family: "Times New Roman";">Whether
you're <span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0cm; padding: 0cm;">day trading</span>, swing trading, or a long-term investor, you
should always measure your performance. Otherwise, how would you know if you're
doing well? One of the great benefits of trading is that you can rigorously
measure how you're doing with objective metrics. This can greatly help
eliminate emotional and cognitive biases. </span><span style="font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: black; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-color-alt: windowtext; mso-fareast-font-family: "Times New Roman";">So,
how is this useful? Well, the human mind tends to build narratives around
everything as it tries to make sense of the world. However, you can't
"hide" from numbers. If you're producing negative returns, something
should be changed in your strategy. Similarly, if you feel like you're doing
well but the numbers aren't reflecting that, you're probably a victim of your
biases.</span><span style="font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 0cm; vertical-align: baseline;"><span style="color: black; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-color-alt: windowtext; mso-fareast-font-family: "Times New Roman";">We've
discussed <span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0cm; padding: 0cm;">risk management</span>, <span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0cm; padding: 0cm;">position sizing</span>, and
setting a <span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0cm; padding: 0cm;">stop-loss</span>. But how do you measure the performance of your </span><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">investments? And how can you compare the
performance of multiple investments? This is where the ROI calculation comes in
handy. In this article, we'll discuss how to calculate return on investment
(ROI).<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 30.0pt; margin-bottom: 24.0pt; mso-outline-level: 2; vertical-align: baseline;"><b><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 24.0pt; mso-fareast-font-family: "Times New Roman";">What is return on investment (ROI)?<o:p></o:p></span></b></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">Return on investment
(ROI) is a way to measure an investment's performance. It also can be used to
compare different investments.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">There are multiple
ways to calculate returns, and we'll cover some of them in the next chapter.
For now, though, it's enough to understand that ROI measures the gains or
losses compared to the initial investment. In other words, it's an
approximation of an investment's profitability. Compared to the original
investment, a positive ROI means profits, and a negative ROI means losses.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">ROI calculation
applies to not just trading or investment, but any kind of business or
purchase. If you plan to open or buy a restaurant, you should do some number
crunching first. Would opening it make sense from a financial perspective?
Calculating an estimated ROI based on all your projected expenses and returns
may help you make a better business decision. If it seems like the business
would turn a profit in the end (i.e., have a positive ROI), it may be worth
getting it started.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">Also, ROI can help
evaluate the results of transactions that already happened. For example, let's
say you buy an old exotic car for $200,000. You then use it for two years and
spend $50,000 on it. Now suppose that the car's price goes up on the market and
you can now sell it for $300,000. Not only did you enjoy this car for two
years, but it also brought you a sizable return on your investment. How much
would that be exactly? Let's find out.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 30.0pt; margin-bottom: 24.0pt; mso-outline-level: 2; vertical-align: baseline;"><b><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 24.0pt; mso-fareast-font-family: "Times New Roman";">How to calculate return on investment (ROI)<o:p></o:p></span></b></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">The ROI formula is
quite simple. You take the current value of the investment and subtract the
original investment cost. Then, you divide this sum by the original cost of the
investment.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: whitesmoke; line-height: normal; margin-bottom: 0cm; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; vertical-align: baseline;"><span style="border: none windowtext 1.0pt; color: #14151a; font-family: "Courier New"; font-size: 12.0pt; letter-spacing: -.25pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">ROI = (current value - original cost) / original cost</span><span style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">So, how much profit
would you make by selling the exotic car?<o:p></o:p></span></p>
<p class="MsoNormal" style="background: whitesmoke; line-height: normal; margin-bottom: 0cm; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; vertical-align: baseline;"><span style="border: none windowtext 1.0pt; color: #14151a; font-family: "Courier New"; font-size: 12.0pt; letter-spacing: -.25pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">ROI = (300,000 - 200,000) / 200,000 = 0.5 </span><span style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">Your ROI is 0.5. If
you multiply it by 100, you get the rate of return (ROR).<o:p></o:p></span></p>
<p class="MsoNormal" style="background: whitesmoke; line-height: normal; margin-bottom: 0cm; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; vertical-align: baseline;"><span style="border: none windowtext 1.0pt; color: #14151a; font-family: "Courier New"; font-size: 12.0pt; letter-spacing: -.25pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">0.5 x 100 = 50</span><span style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">This means that you
made a 50% gain on your original investment. However, you need to take into
account how much was spent on the car to get the full picture. So, let's
subtract that from the current value of the car:<o:p></o:p></span></p>
<p class="MsoNormal" style="background: whitesmoke; line-height: normal; margin-bottom: 0cm; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; vertical-align: baseline;"><span style="border: none windowtext 1.0pt; color: #14151a; font-family: "Courier New"; font-size: 12.0pt; letter-spacing: -.25pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">300,000 - 50,000 = 250,000</span><span style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">Now, you can calculate
ROI while taking into account the expenses:<o:p></o:p></span></p>
<p class="MsoNormal" style="background: whitesmoke; line-height: normal; margin-bottom: 0cm; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; vertical-align: baseline;"><span style="border: none windowtext 1.0pt; color: #14151a; font-family: "Courier New"; font-size: 12.0pt; letter-spacing: -.25pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">ROI = (250,000 - 200,000) / 200,000 = 0.25</span><span style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">Your ROI is 0.25 (or
25%). This means that if we multiply your cost of investment ($200,000) by your
ROI (0.25), we can find the net profit, which is $50,000.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: whitesmoke; line-height: normal; margin-bottom: 0cm; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; vertical-align: baseline;"><span style="border: none windowtext 1.0pt; color: #14151a; font-family: "Courier New"; font-size: 12.0pt; letter-spacing: -.25pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">200,000 x 0.25 = 50,000</span><span style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 30.0pt; margin-bottom: 24.0pt; mso-outline-level: 2; vertical-align: baseline;"><b><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 24.0pt; mso-fareast-font-family: "Times New Roman";">The limitations of ROI<o:p></o:p></span></b></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">So, ROI is very easy
to understand and brings a universal measure of profitability. Are there any
limitations? Sure.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">One of the biggest
limitations of ROI is that it doesn't take into account the time period. Why
does this matter? Well, time is a crucial factor for investments. There could
be other considerations (like liquidity and security), but if an investment
brings 0.5 ROI in a year, that's better than 0.5 ROI in five years. This is why
you may see some talking about annualized ROI, which represents the investment
returns (gains) you could expect over the course of a year.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">Still, ROI won't take
into account other aspects of an investment. A higher ROI doesn't necessarily
mean a better investment. What if you can't find anyone willing to buy your
investment and get stuck with it for a long period of time? What if the
underlying investment has poor liquidity?<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 24.0pt; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">Another factor to
consider is risk. An investment might have a very high prospective ROI, but at
what cost? If there's a high chance that it goes to zero, or that your funds
become inaccessible, then the prospective ROI isn't all that important. Why?
The risk of holding this asset for a long time is very high. Sure, the
potential reward could also be high, but losing the entire original investment
is certainly not what you want.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 0cm; vertical-align: baseline;"><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">Just purely looking at
ROI won't give you insights into its safety, so you should consider other
metrics as well. You could start by calculating </span><span style="color: black; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-color-alt: windowtext; mso-fareast-font-family: "Times New Roman";">the <span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0cm; padding: 0cm;">risk/reward ratio</span> </span><span style="color: #14151a; font-family: "Arial",sans-serif; font-size: 15.0pt; mso-fareast-font-family: "Times New Roman";">for each trade and investment. This way, you
can get a better picture of the quality of each bet. In addition, some stock
market analysts may also consider other factors when evaluating potential
investments. These can include cash flows, interest rates, capital gains tax,
return on equity (ROE), and more.<o:p></o:p></span></p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com1tag:blogger.com,1999:blog-5043166776166276009.post-18070125377549308802020-09-24T06:52:00.004-07:002020-09-24T06:53:39.553-07:00The Complete Beginner's Guide to Decentralized Finance (DeFi)<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span face=""Arial",sans-serif" style="font-size: 18pt; mso-fareast-font-family: "Times New Roman";">What is Decentralized Finance (DeFi)?<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Decentralized Finance
(or simply DeFi) refers to an ecosystem of financial applications that are
built on top of </span><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">blockchain</span><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";"> networks. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">More specifically, the
term Decentralized Finance may refer to a movement that aims to create an
open-source, permissionless, and transparent financial service ecosystem that
is available to everyone and operates without any central authority. The users
would maintain full control over their assets and interact with this ecosystem
through </span><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">peer-to-peer (P2P)</span><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">, </span><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">decentralized applications (dapps)</span><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">The core benefit of
DeFi is easy access to financial services, especially for those who are
isolated from the current financial system. Another potential advantage of DeFi
is the modular framework it is built upon - </span><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">interoperable</span><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";"> DeFi
applications on public blockchains will potentially create entirely new
financial markets, products, and services. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">This article will
provide an introductory dive into DeFi, its potential applications, promises,
limitations, and more.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";"> </span></p>
<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span face=""Arial",sans-serif" style="font-size: 18pt; mso-fareast-font-family: "Times New Roman";">What are the main advantages of DeFi?<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Traditional finance
relies on institutions such as banks to act as intermediaries, and courts to
provide arbitration. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">DeFi applications do
not need any intermediaries or arbitrators. The code specifies the resolution
of every possible dispute, and the users maintain control over their funds at
all times. This reduces the costs associated with providing and using these
products and allows for a more frictionless financial system.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">As these new financial
services are deployed on top of blockchains, single points of failure are
eliminated. The data is recorded on the blockchain and spread across thousands
of </span><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">nodes</span><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">, making censorship or the potential shutdown
of a service a complicated undertaking. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Since the frameworks
for DeFi applications can be built in advance, deploying one becomes much less
complicated and much more secure.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Another significant
advantage of such an open ecosystem is the ease of access for individuals who
otherwise wouldn’t have access to any financial services. Since the traditional
financial system relies on the intermediaries making a profit, their services
are typically absent from locations with low-income communities. However, with
DeFi, the costs are significantly reduced, and low-income individuals can also
benefit from a broader range of financial services.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";"> </span></p>
<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span face=""Arial",sans-serif" style="font-size: 18pt; mso-fareast-font-family: "Times New Roman";">What are the potential use cases for DeFi?<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3;"><b><span face=""Arial",sans-serif" style="font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Borrowing & Lending<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Open lending protocols
are one of the most popular types of applications that are part of the DeFi
ecosystem. Open, decentralized borrowing and lending have many advantages over
the traditional credit system. These include instant transaction settlement,
the ability to collateralize digital assets, no credit checks, and potential
standardization in the future. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Since these lending
services are built on public blockchains, they minimize the amount of trust
required and have the assurance of cryptographic verification methods. Lending
marketplaces on the blockchain reduce counterparty risk, make borrowing and
lending cheaper, faster, and available to more people.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";"> </span></p>
<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3;"><b><span face=""Arial",sans-serif" style="font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Monetary banking services<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">As DeFi applications
are, by definition, financial applications, monetary banking services are an
obvious use case for them. These can include the issuance of </span><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">stablecoins</span><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">, mortgages, and insurance.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">As the blockchain
industry is maturing, there is an increased focus on the creation of
stablecoins. They are a type of cryptoasset that is usually pegged to a
real-world asset but can be transferred digitally with relative ease. As
cryptocurrency prices can fluctuate rapidly at times, decentralized stablecoins
could be adopted for everyday use as digital cash that is not issued and
monitored by a central authority. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Largely because of the
number of intermediaries needing to be involved, the process of getting a mortgage
is expensive and time-consuming. With the use of smart contracts, underwriting
and legal fees may be reduced significantly.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Insurance on the
blockchain could eliminate the need for intermediaries and allow the
distribution of risk between many participants. This could result in lower
premiums with the same quality of service. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">If you’d like to read
more on the subject of blockchain and banking, we recommend reading our
article </span><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">How Blockchain Technology Will
Impact the Banking Industry</span><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";"> </span></p>
<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3;"><b><span face=""Arial",sans-serif" style="font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Decentralized Marketplaces<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">This category of
applications can be challenging to assess, as it is the segment of DeFi that
gives the most room for financial innovation. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Arguably, some of the
most crucial DeFi applications are </span><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">decentralized exchanges (DEXes)</span><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">. These platforms allow users to trade digital assets without
the need for a trusted intermediary (the </span><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">exchange</span><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">) to hold their funds.
The trades are made directly between user wallets with the help of smart
contracts. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Since they require
much less maintenance work, decentralized exchanges typically have lower trading
fees than centralized exchanges. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Blockchain technology
may also be used to issue and allow ownership of a wide range of conventional
financial instruments. These applications would work in a decentralized way
that cuts out custodians and eliminates single points of failure.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Security token
issuance platforms, for example, may provide the tools and resources for
issuers to launch tokenized securities on the blockchain with customizable
parameters. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Other projects may
allow the creation of derivatives, synthetic assets, decentralized prediction
markets, and many more.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span face=""Arial",sans-serif" style="font-size: 18pt; mso-fareast-font-family: "Times New Roman";"> </span></b></p>
<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span face=""Arial",sans-serif" style="font-size: 18pt; mso-fareast-font-family: "Times New Roman";">What role do smart contracts have in DeFi?<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Most of the existing
and potential applications of Decentralized Finance involve the creation and
execution of </span><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">smart contracts</span><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">. While a usual contract uses legal
terminology to specify the terms of the relationship between the entities
entering the contract, a smart contract uses computer code.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Since their terms are
written in computer code, smart contracts have the unique ability also to
enforce those terms through computer code. This enables the reliable execution
and automation of a large number of business processes that currently require
manual supervision.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Using smart contracts
is faster, easier, and reduces risk for both parties. On the other hand, smart
contracts also introduce new types of risks. As computer code is prone to have
bugs and vulnerabilities, the value and confidential information locked in
smart contracts are at risk.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";"> </span></p>
<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span face=""Arial",sans-serif" style="font-size: 18pt; mso-fareast-font-family: "Times New Roman";">What challenges does DeFi face?<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 16.8pt; margin: 0cm; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><b><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">Poor
performance:</span></b><span face=""Arial",sans-serif" style="mso-fareast-font-family: "Times New Roman";"> Blockchains are inherently slower than
their centralized counterparts, and this translates to the applications built
on top of them. The developers of DeFi applications need to take these
limitations into account and optimize their products accordingly.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; margin: 0cm; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><b><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">High
risk of user error:</span></b><span face=""Arial",sans-serif" style="mso-fareast-font-family: "Times New Roman";"> DeFi
applications transfer the responsibility from the intermediaries to the user.
This can be a negative aspect for many. Designing products that minimize the
risk of user error is a particularly difficult challenge when the products are
deployed on top of immutable blockchains.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; margin: 0cm; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><b><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">Bad
user experience:</span></b><span face=""Arial",sans-serif" style="mso-fareast-font-family: "Times New Roman";"> Currently, using
DeFi applications requires extra effort on the user’s part. For DeFi
applications to be a core element of the global financial system, they must
provide a tangible benefit that incentivizes users to switch over from the
traditional system.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; margin: 0cm; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><b><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">Cluttered
ecosystem: </span></b><span face=""Arial",sans-serif" style="mso-fareast-font-family: "Times New Roman";">It can be a daunting
task to find the application that is the most suitable for a specific use case,
and users must have the ability to find the best choices. The challenge is not
only building the applications but also thinking about how they fit into the
broader DeFi ecosystem.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";"> </span></p>
<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span face=""Arial",sans-serif" style="font-size: 18pt; mso-fareast-font-family: "Times New Roman";">What is the difference between DeFi and open banking?<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Open banking refers to
a banking system where third-party financial service providers are given secure
access to financial data through </span><span face=""Arial",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; mso-border-alt: none windowtext 0cm; mso-fareast-font-family: "Times New Roman"; padding: 0cm;">APIs</span><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">. This enables the
networking of accounts and data between banks and non-bank financial
institutions. Essentially, it allows new types of products and services within
the traditional financial system. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">DeFi, however,
proposes an entirely new financial system that is independent of the current
infrastructure. DeFi is sometimes also referred to as open finance.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">For example, open
banking could allow the management of all traditional financial instruments in
one application by drawing data from several banks and institutions securely. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.8pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Decentralized Finance,
on the other hand, could allow the management of entirely new financial
instruments and new ways of interacting with them.<o:p></o:p></span></p>
<p> </p>Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com0tag:blogger.com,1999:blog-5043166776166276009.post-78820029574647381262020-07-28T16:24:00.002-07:002020-07-28T16:24:47.517-07:00Proof of Stake Explained<h3 dir="ltr" style="-webkit-font-smoothing: antialiased; border: 0px; box-sizing: border-box; font-feature-settings: "ss02"; font-size: 1.6rem; margin: 0px 0px 0.5rem; padding: 0px; vertical-align: initial;">
<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">What is Proof of Stake?</span></span></h3>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">The Proof of Stake <span style="border-color: initial; border-image: initial; border-style: initial; box-sizing: border-box; position: relative; vertical-align: initial; word-break: break-word;">consensus algorithm</span> was introduced back in 2011 on the Bitcointalk forum to solve the problems of the current most popular algorithm in use - <span style="border-color: initial; border-image: initial; border-style: initial; box-sizing: border-box; position: relative; vertical-align: initial; word-break: break-word;">Proof of Work</span>. While they both share the same goal of reaching consensus in the blockchain, the process to reach the goal is quite different.</span></span></div>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;"><br style="-webkit-font-smoothing: antialiased; box-sizing: border-box; font-feature-settings: "ss02";" /></span></span></div>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">How does it work?</span></span></h3>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">The Proof Of Stake algorithm uses a pseudo-random election process to select a node to be the validator of the next block, based on a combination of factors that could include the <span style="border-color: initial; border-image: initial; border-style: initial; box-sizing: border-box; position: relative; vertical-align: initial; word-break: break-word;">staking</span> age, randomization, and the <span style="border-color: initial; border-image: initial; border-style: initial; box-sizing: border-box; position: relative; vertical-align: initial; word-break: break-word;">node’s</span> wealth.</span></span></div>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">It’s good to note that in Proof of Stake systems, blocks are said to be ‘forged’ rather than mined. Cryptocurrencies using Proof of Stake often start by selling pre-mined coins or they launch with the Proof of Work algorithm and later switch over to Proof of Stake.</span></span></div>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">Where in Proof of Work-based systems more and more cryptocurrency is created as rewards for miners, the Proof-of-Stake system usually uses transaction fees as a reward.</span></span></div>
<div dir="ltr" style="-webkit-font-smoothing: antialiased; -webkit-text-stroke: 1px transparent; border: 0px; box-sizing: border-box; font-feature-settings: "ss02"; font-size: 16px; line-height: 1.4em; margin-bottom: 1rem; padding: 0px; text-shadow: rgba(0, 0, 0, 0.004) 1px 1px 1px; vertical-align: initial;">
<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">Users who want to participate in the forging process, are required to lock a certain amount of coins into the network as their stake. The size of the stake determines the chances for a node to be selected as the next validator to forge the next block - the bigger the stake, the bigger the chances. In order for the process not to favor only the wealthiest nodes in the network, more unique methods are added into the selection process. The two most commonly used methods are ‘Randomized Block Selection’ and ‘Coin Age Selection’.</span></span></div>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">In the Randomized Block Selection method the validators are selected by looking for nodes with a combination of the lowest hash value and the highest stake and since the size of stakes are public, the next forger can usually be predicted by other nodes.</span></span></div>
<div dir="ltr" style="-webkit-font-smoothing: antialiased; -webkit-text-stroke: 1px transparent; border: 0px; box-sizing: border-box; font-feature-settings: "ss02"; font-size: 16px; line-height: 1.4em; margin-bottom: 1rem; padding: 0px; text-shadow: rgba(0, 0, 0, 0.004) 1px 1px 1px; vertical-align: initial;">
<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">The Coin Age Selection method chooses nodes based on how long their tokens have been staked for. Coin age is calculated by multiplying the number of days the coins have been held as stake by the number of coins that are staked. Once a node has forged a block, their coin age is reset to zero and they must wait a certain period of time to be able to forge another block - this prevents large stake nodes from dominating the blockchain.</span></span></div>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">Each cryptocurrency using Proof of Stake algorithm has their own set of rules and methods combined for what they think is the best possible combination for them and their users.</span></span></div>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">When a node gets chosen to forge the next block, it will check if the transactions in the block are valid, signs the block and adds it to the blockchain. As a reward, the node receives the transaction fees that are associated with the transactions in the block.</span></span></div>
<div dir="ltr" style="-webkit-font-smoothing: antialiased; -webkit-text-stroke: 1px transparent; border: 0px; box-sizing: border-box; font-feature-settings: "ss02"; font-size: 16px; line-height: 1.4em; margin-bottom: 1rem; padding: 0px; text-shadow: rgba(0, 0, 0, 0.004) 1px 1px 1px; vertical-align: initial;">
<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">If a node wants to stop being a forger, its stake along with the earned rewards will be released after a certain period of time, giving the network time to verify that there are no fraudulent blocks added to the blockchain by the node.</span></span></div>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;"><br style="-webkit-font-smoothing: antialiased; box-sizing: border-box; font-feature-settings: "ss02";" /></span></span></div>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">Security</span></span></h3>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">The stake works as a financial motivator for the forger node not to validate or create fraudulent transactions. If the network detects a fraudulent transaction, the forger node will lose a part of its stake and its right to participate as a forger in the future. So as long as the stake is higher than the reward, the validator would lose more coins than it would gain in case of attempting fraud.</span></span></div>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">In order to effectively control the network and approve fraudulent transactions, a node would have to own a majority stake in the network, also known as the <span style="border-color: initial; border-image: initial; border-style: initial; box-sizing: border-box; position: relative; vertical-align: initial; word-break: break-word;">51% attack</span>. Depending on the value of a cryptocurrency, this would be very impractical as in order to gain control of the network you would need to acquire 51% of the circulating supply.</span></span></div>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">The main advantages of the Proof of Stake algorithm are energy efficiency and security.<br style="-webkit-font-smoothing: antialiased; box-sizing: border-box; font-feature-settings: "ss02";" />A greater number of users are encouraged to run nodes since it’s easy and affordable. This along with the randomization process also makes the network more decentralized, since mining pools are no longer needed to mine the blocks. And since there is less of a need to release many new coins for a reward, this helps the price of a particular coin stay more stable.</span></span></div>
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<span style="background-color: white;"><span style="font-family: Georgia, Times New Roman, serif;">It’s good to remember that the cryptocurrency industry is rapidly changing and evolving and there are also several other algorithms and methods being developed and experimented with.</span></span></div>
Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com2tag:blogger.com,1999:blog-5043166776166276009.post-82373782852092947182020-07-22T20:02:00.000-07:002020-07-22T20:02:07.006-07:00What Is Ripple?<div dir="ltr" style="-webkit-font-smoothing: antialiased; -webkit-text-stroke: 1px transparent; border: 0px; box-sizing: border-box; font-feature-settings: "ss02"; font-size: 16px; line-height: 1.4em; margin-bottom: 1rem; padding: 0px; text-shadow: rgba(0, 0, 0, 0.004) 1px 1px 1px; vertical-align: initial;">
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">Formerly
known as OpenCoin, Ripple is a privately held company that is building a
payment and exchange network (RippleNet) on top of a distributed ledger
database (XRP Ledger). The main goal of Ripple is to connect banks, payment
providers and digital asset exchanges, enabling faster and cost-efficient
global payments. </span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><b><span style="background: white; color: black; font-size: 13.5pt;">History</span></b><b><span style="color: black; font-size: 13.5pt;"><o:p></o:p></span></b></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">Ripple
was first idealized in 2004 by Ryan Fugger, who developed the first prototype
of Ripple as a decentralized digital monetary system (RipplePay). The system
went live in 2005 and was meant to provide secure payment solutions within a
global network.</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">In
2012, Fugger handed over the project to Jed McCaleb and Chris Larsen and
together they founded the US-based technology company OpenCoin. From that point
on, Ripple started to be built as a protocol focused on payment solutions for
banks and other financial institutions. In 2013, OpenCoin was rebranded to
Ripple Labs, which was later rebranded to Ripple, in 2015.</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><b><span style="background: white; color: black; font-size: 13.5pt;">The XRP Ledger (XRPL)</span></b><b><span style="color: black; font-size: 13.5pt;"><o:p></o:p></span></b></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">Based
on the work of Fugger and inspired by the creation of Bitcoin, Ripple deployed
the Ripple Consensus Ledger (RCL) in 2012 - along with its native
cryptocurrency <span style="border: none windowtext 1.0pt; color: blue; mso-border-alt: none windowtext 0cm; padding: 0cm;">XRP</span>. The RCL was
later renamed to XRP Ledger (XRPL).</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">The
XRPL works as a distributed economic system that not only stores all the
accounting information of the network participants but also provides exchange
services across multiple currency pairs. Ripple presents the XRPL as an
open-source distributed ledger that allows for real-time financial
transactions. These transactions are secured and verified by the participants
of the network through a consensus mechanism. </span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">Unlike
Bitcoin, however, the XRP Ledger is not based on a <span style="border: none windowtext 1.0pt; color: blue; mso-border-alt: none windowtext 0cm; padding: 0cm;">Proof of Work</span> consensus
algorithm and, therefore, does not rely on a process of <span style="border: none windowtext 1.0pt; color: blue; mso-border-alt: none windowtext 0cm; padding: 0cm;">mining</span> to
verify transactions. Instead, the network reaches consensus through the use of
its own customized consensus algorithm – formerly known as the Ripple Protocol
Consensus Algorithm (RPCA).</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">The
XRPL is managed by a network of independent validating nodes that constantly
compare their transaction records. Anyone is able to not only set up and run a
Ripple validator node but also to choose which nodes to trust as validators.
However, Ripple recommends its clients to use a list of identified, trusted
participants to validate their transactions. This list is known as the Unique
Node List (UNL).</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">The UNL
nodes exchange transaction data between each other until all of them agree on
the current state of the ledger. In other words, transactions that are agreed
upon by a supermajority of UNL nodes are considered valid and the consensus is
achieved when all these nodes apply the same set of transactions to the ledger.</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">According
to Ripple’s official website, Ripple is a privately held company that founded
the development of the XRPL as an open-source distributed ledger. This means
that anyone can contribute to the code and that the XRPL is able to continue
even if the company ceases to exist.</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><b><span style="background: white; color: black; font-size: 13.5pt;">RippleNet</span></b><b><span style="color: black; font-size: 13.5pt;"><o:p></o:p></span></b></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">In
contrast to XRPL, the RippleNet is exclusive to the Ripple company and was
built on top of the XRPL as a payment and exchange network.</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">The
RippleNet currently offers a 3-product suite that is designed as a payment
solution system for banks and other financial institutions. Currently,
RippleNet has three major products: xRapid, xCurrent, and xVia.</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><b><span style="background: white; color: black; font-size: 13.5pt;">xRapid</span></b><b><span style="color: black; font-size: 13.5pt;"><o:p></o:p></span></b></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">In
short, xRapid is an on-demand liquidity solution that uses XRP as a global
bridge currency between multiple<span style="border: none windowtext 1.0pt; color: blue; mso-border-alt: none windowtext 0cm; padding: 0cm;"> fiat currencies</span>.
Both XRP and xRapid rely on the XRP Ledger, which enables faster confirmation
times and much lower fees when compared to conventional methods.</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">Let’s
take a simple example. Bob from Australia wants to send $100 to Alice who is
based in India. Bob transfers the money via a financial institution called FIN.
In order to perform the transaction, FIN uses the xRapid solution to create a
connection with asset exchanges in both the originating and destination
country. This way, the company is able to convert Bob’s $100 to XRP, which
provides the necessary liquidity for the final payment. In a matter of seconds,
the XRP is converted to Indian Rupees and Alice is able to withdraw the money
from the asset exchange located in India.</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><b><span style="background: white; color: black; font-size: 13.5pt;">xCurrent</span></b><b><span style="color: black; font-size: 13.5pt;"><o:p></o:p></span></b></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">xCurrent
is a solution designed to provide instant settlement and tracking of
cross-border payments between RippleNet members. Unlike xRapid, the xCurrent
solution is not based on the XRP Ledger and does not use the XRP cryptocurrency
by default. The xCurrent is built around the Interledger Protocol (ILP), which
was designed by Ripple as a protocol for connecting different ledgers or
payment networks. </span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">The
four basic components of xCurrent are:<br style="mso-special-character: line-break;" />
<!--[if !supportLineBreakNewLine]--><br style="mso-special-character: line-break;" />
<!--[endif]--></span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 16.8pt; margin: 0cm 0cm 0.0001pt 22.5pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="font-family: Georgia, Times New Roman, serif;"><span style="color: black;"><span style="mso-list: Ignore;">1.<span style="font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><!--[endif]--><span style="background: white; color: black;">Messenger
- The xCurrent messenger provides peer-to-peer communication between connected
RippleNet financial institutions. It is used to exchange information regarding
risk and compliance, fees, FX rates, payment details and expected time of funds
delivery.</span><span style="color: black;"><o:p></o:p></span></span></div>
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<!--[if !supportLists]--><span style="font-family: Georgia, Times New Roman, serif;"><span style="color: black;"><span style="mso-list: Ignore;">2.<span style="font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><!--[endif]--><span style="background: white; color: black;">Validator -
Validator is used to cryptographically confirm the success or failure of a
transaction and also to coordinate moving of funds across the Interledger.
Financial institutions can run their own validator or can rely on a third-party
validator.</span><span style="color: black;"><o:p></o:p></span></span></div>
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<!--[if !supportLists]--><span style="font-family: Georgia, Times New Roman, serif;"><span style="color: black;"><span style="mso-list: Ignore;">3.<span style="font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><!--[endif]--><span style="background: white; color: black;">ILP
Ledger - The Interledger Protocol is implemented into existing banking
ledgers, which creates the ILP Ledger. The ILP Ledger functions as a sub-ledger
and is used to track credits, debits, and liquidity across transacting parties.
Funds are settled atomically, meaning that they are either settled instantly or
not at all.</span><span style="color: black;"><o:p></o:p></span></span></div>
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<!--[if !supportLists]--><span style="font-family: Georgia, Times New Roman, serif;"><span style="color: black;"><span style="mso-list: Ignore;">4.<span style="font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><!--[endif]--><span style="background: white; color: black;">FX
Ticker - FX ticker is used to define exchange rates between transacting
parties. It tracks the current state of each configured ILP Ledger.</span><span style="color: black;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">Although
xCurrent is primarily designed for fiat currencies, it also supports
cryptocurrency transactions.</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><b><span style="background: white; color: black; font-size: 13.5pt;">xVia</span></b><b><span style="color: black; font-size: 13.5pt;"><o:p></o:p></span></b></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">xVia is
an API-based standardized interface that allows banks and other financial
service providers to interact within a single framework - without having to
rely on multiple payment network integrations. xVia allow banks to create
payments through other banking partners that are connected to RippleNet and
also enables them to attach invoices or other information to their
transactions.</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><b><span style="background: white; color: black; font-size: 18pt;">Closing thoughts</span></b><b><span style="color: black; font-size: 18pt;"><o:p></o:p></span></b></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">While <span style="border: none windowtext 1.0pt; color: blue; mso-border-alt: none windowtext 0cm; padding: 0cm;">Bitcoin</span> is
known as the first cryptocurrency and <span style="border: none windowtext 1.0pt; color: blue; mso-border-alt: none windowtext 0cm; padding: 0cm;">Ethereum</span> is
recognized for the creation of a platform for smart contracts, we may consider
Ripple network as a currency exchange system that focuses on global payment
solutions for banks and other financial institutions.</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="background: white; color: black; font-size: 12pt;">RippleNet
may be implemented on top of the existing banking infrastructure as a way to
complement and improve the traditional payment system. xCurrent allows for
cost-efficient real-time payments across financial institutions, xRapid uses
XRP as a bridge borderless currency to provide on-demand liquidity pools, and
xVia facilitates the integration and communication of all RippleNet
participants.</span><span style="color: black; font-size: 12pt;"><o:p></o:p></span></span></div>
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<br />Jorl Tanhttp://www.blogger.com/profile/13935371519710750399noreply@blogger.com2