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  • Konomi Network ($KONO): bringing money markets to Polkadot

    Konomi Network ($KONO): bringing money markets to Polkadot

    Utilizing Substrate as a development blueprint, Konomi Network aims to develop a fully interoperable service product that allows users to trade cryptocurrencies, manage their holdings, and make a profit out of decentralized money market options for the Polkadot ecosystem.

    Background

    The problem that has since limited the use of cryptocurrencies and hindered its mass adoption is the lack of interoperability. Holders of a particular token belonging to a different blockchain cannot easily make cross-chain transactions. This also means that all other digital asset providers cannot simply work together to provide financial services due to network restrictions.

    Konomi Network is designed to solve that issue. Built on top of the Polkadot blockchain, the project addresses the problem with gas fees on Ethereum. This is to improve transaction speed and network scalability.

    As of now, the protocol already supports a decentralized liquidity swap and money market. The team behind Konomi is currently working on the launch of the bridge to Polkadot’s parachains, wallets, and the open virtual machine to support smart contracts. Before the end of the year, the team is planning to launch the Konomi mainnet on the Polkadot ecosystem, link with other assets through a cross-chain bridge, as well as introduce fiat payments.

    What is the Konomi Network?

    Konomi Network is an independent blockchain project that features a comprehensive asset management platform on top of the Polkadot ecosystem. It provides cross-chain products and services such as trading, lending, and deposits. Since the platform is supported by parachains and Ethereum bridges, it can facilitate blockchain-agnostic services.

    One of the strongest suits of the platform is its liquidity. Any trader can access liquidity from other exchanges through the platform in performing their trades and it relies on automated market makers (AMM) to supply buy and sell orders without the need for order books.

    For further decentralization, the platform implements the same consensus model as Polkadot, the Nominated Proof of Stake (NPoS). In this system, network security is maintained by the validators selected by the protocol’s stakers. They can freely choose how much they want to delegate to a validator and earn rewards in proportion to the amount of their stake.

    In the beta phase of the platform, it can be accessed as a web application. But in the next upgrades, the team will introduce a mobile version with the objective of making it easier for users to open the application.

    Konomi Network platform
    Konomi Network platform

    Konomi Wallet

    Konomi Wallet features a decentralized asset storage function. Users can freely deposit their cryptocurrencies on the wallet while still being able to monitor their holdings across different protocols. Through this application, users can also access either Konomi Trade or Lend easily.

    Konomi Trade

    Konomi Trade allows users to conduct their trades with the supply of liquidity coming from different markets in the Polkadot network. Supported by its AMM implementation, traders enjoy immediate on-chain transaction execution without the need for any third-party facilitator.

    Konomi Lend

    Konomi Lend is a decentralized money market protocol designed to allow users to borrow and lend their digital assets to other interested users. This product features the collateralized debt position model. This is where borrowers are required to lock at least the minimum amount specified for collateralization before they are allowed to make loans. For now, Konomi supports Polkadot’s native token (DOT) for collateralization.

    Decentralized Trading Protocol

    Konomi is designed to implement AMMs that are similarly deployed in most Ethereum-based exchanges. Its architecture is patterned after the DODO exchange, allowing it to effectively mitigate the risks of impermanent loss on the part of the traders.

    Decentralized Money Market

    Konomi’s money market protocol backs its borrowing and lending services for assets based on the Polkadot ecosystem. The interest rates imposed on borrowing depend on the total supply and demand in the platform’s liquidity pool. Patterned after the Compound protocol, these rates will be computed on a per-block basis.

    For those who would like to supply assets to the protocol’s existing liquidity pools, they can lock their holdings in smart contracts as collateral to earn lending interest. This also lets them access borrowing services.

    Cross-Chain Messaging Passing Feature

    Konomi will implement the Cross-Chain Messaging Passing (XCMP) function in order to achieve interoperability. XCMP is designed to link parachains together for the purposes of relaying transactions from one network to the other.

    What this does is it allows transactions made in different parachains to work despite their independence with each other. This allows users to tap other markets on the Polkadot ecosystem even if their assets are only on the Konomi protocol.

    KONO Token

    KONO is Konomi’s native utility token that is used to pay for the platform’s minimal transaction fees, trade between other market participants, collateral for loans in the network, staking, and protocol governance. The supply of KONO is limited and fixed to 100 million tokens.

    KONO token uses
    KONO token uses

    KONO holders are given the right to cast their votes on network proposals concerning different protocol parameters such as staking fee, transaction fee burn, liquidity mining ratio, and others. Participants to the governance mechanism are also given rewards for joining.

    The reward system for the protocol is also powered by KONO tokens. Those who stake their tokens and supply liquidity to the protocol are entitled to a reward proportional to the amount of token they locked in the network.

    Conclusion

    Konomi is an up-and-coming addition to the array of decentralized finance (DeFi) products in the space today. Since its infrastructure is supported by the Polkadot blockchain, it can stand to be a valuable competitor of other decentralized money markets and asset management services in the near future. Furthermore, its products can potentially entice a lot of users looking to make additional profit out of their holdings through staking. Its outlook for future adoption is positive.

    However, until the platform is fully operational, we cannot absolutely compare it with the initiatives that were first launched in the market. While Konomi is built on a high-performing blockchain with cross-chain functionality, its application’s capacity to support the needs of its users is still going to be the best metric for its growth and success.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • SOTA Finance: Marketplace for limited edition NFT art

    SOTA Finance: Marketplace for limited edition NFT art

    The internet improved how we communicate, share files, and stay connected. Unfortunately, it also made it hard to preserve content copyright. Rules and regulations haven’t done much to solve the problem. 

    As such, digital content creators have to choose between safeguarding copyright or reaching their audience. Mostly, they don’t receive the exact incentives. Luckily, Bitcoin brought blockchain technology, opening a new world of possibilities. For instance, it powers decentralized finance (DeFi) and non-fungible tokens (NFTs).

    Notably, NFTs have unique signatures that allow them to move from one user to another without affecting their authenticity. Interestingly, their ownership is automatically changed during a purchase. SOTA Finance brings the new world to reality by connecting NFT creators and collectors by allowing limited digital content creations to be easily created and transacted using blockchain technology.


    Background

    Dung Nguyen and Tommy Le are the Co-founders of SOTA Finance. Nguyen has rich experience in blockchain research, business management, and economics.

    On the other hand, Le’s strengths are IT consulting, blockchain development, and general software development. Its CEO, Thao Nguyen, has a strong background in financial technology, focusing on risk management, investment, and asset modeling. The CTO, Thi Truong, also has technical expertise in blockchain technology.

    What is SOTA Finance?

    SOTA finance is a decentralized platform that brings together NFT creators and collectors. In other words, it facilitates NFT creation, selling, and buying. Additionally, it has a governance token that allows users to have a say in how the platform is run. Notably, this is among the few firsts in NFT marketplaces.

    Note that SOTA is an inter-blockchain platform allowing NFT creation on Binance Chain, Ethereum, and TomoChain.

    SOTA Finance allows the creation and sale of non-fungible tokens, and buyers can choose to trade on the network or external/secondary markets such as OpenSea.

    How SOTA Finance Works

    User Login

    The first step to start using the multi-chain NFT platform is through logging in. Users can either use a valid email-password combination or Google ID or Facebook ID. Upon creating an account, the platform assigns each user a wallet where it deducts gas fees to pay for user-ignited activities.

    NFT Creation

    SOTA is open to everyone thirsty to develop an NFT using original virtual content. Initially, creators define key metrics such as how many NFTs will exist and the expected royalties when their creations are sold on secondary markets.

    At present, SOTA caps the royalties at 10 percent. Note that royalties are calculated as a percentage of the profits from sales. Notably, the deductions are credited directly to the creators.

    Creators can sell their works on SOTA by listing their prices in Tether (USDT). Note that the protocol charges a 15 percent creation fee during the first sale.

    The platform runs verified accounts that recognize creators as the original owners. However, creators have to explicitly apply for this type of account. (chacc.co.uk) Whether or not SOTA administrators grant their request depends on a creator’s profile on the network.

    In case of a copyright violation, users can use the inbuilt “report” feature to bring it to the attention of the platform’s admins.

    NFT Collection

    After creating, it’s time for collecting. SOTA Finance users can freely trade non-fungible tokens directly on the platform. Notably, buying and selling attract a flat fee of 2.5 percent.

    Observe that although NFT prices are set in USDT, users can still use other cryptocurrencies such as Ethereum (ETH) and Bitcoin (BTC) to make a purchase. However, to do this, the platform converts the users’ coins to USDT using prevailing market prices at the time of the conversion. An example of exchanges providing updated prices includes Uniswap.

    NFT Farming

    In the wake of DeFi, yield farming takes center stage. SOTA Finance isn’t blind to the phenomenon and enables users to stake the network’s base currency, SOTA, to earn rewards.

    Staking the native coin earns stakers Pumpkin points. Apart from users, creators can join hands and provide NFTs for farming purposes. In such a scenario, the number of NFTs dedicated to staking is set during creation. Additionally, creators set how many Pumpkin points are needed to lay your hands on the rare gem.

    However, unlike other NFTs on the marketplace, a farmed NFT earns the creator half of its price as the royalty fee.

    SOTA token

    SOTA is the base asset of the SOTA Finance ecosystem. The token has a fixed supply of one hundred million coins. Out of the total, 40% goes to token sale/swap.

    In addition, the founding team takes 15 percent, and 4 percent drives the bounty program. Additionally, there is a six percent allocation to rewards to NFT farming, and ten percent goes to incentivizing participants for 36 months.

    Notably, the smart contract powering the SOTA token has a 99 percent success score from CERTIK, a reputable security company focusing on blockchain-based applications.

    In its qualifying statement, CERTIK noted that it “believes this smart contract passes security qualifications to be listed on digital asset exchanges.”

    Apart from the token contract, the security company interrogated the SOTA Finance source code giving it a score of 100 percent for key technical areas such as integer overflow/underflow, function incorrectness, buffer overflow, reentrancy, transaction order dependence, among other areas that can weaken the platform’s security.

    Benefits of holding SOTA tokens

    SOTA is a governance token for the SOTA Finance platform, meaning they can vote on decisions relating to how the platform is run. The act of voting itself also generates rewards.

    Other benefits for token holders include staking benefits. SOTA tokens cam be staked in return for pumpkins. Currently the staking rate is 100 SOTA staked yields 1 pumpkin every 1 day. Pumpkins are a form of “payment” for redeeming NFTs on their “Farm NFT” page.

    SOTA Finance artworks
    SOTA Finance artworks (Image credit: SOTA finance)

    How Does SOTA Cater to Mobile Users?

    Life is mobile, and so is SOTA Finance. The platform’s developers are committed to enabling access through mobile devices. The application allows for NFT creation, sale, and buying.

    Non-crypto Users

    The platform isn’t made for only crypto holders. As such, the team is working on interfacing the project with popular conventional payment methods like PayPal and credit card platforms such as MasterCard and Visa.

    Conclusion

    Armed with a governance token, SOTA Finance brings a new dimension to the NFT marketplace. Moreover, the platform is among a few in its class to natively support NFT staking.

    Notably, all critical areas are audited by a leading blockchain security firm. This improves user confidence, hence, promotes a better adoption rate. Another key feature on the network is its resolve to bring non-cryptocurrency users on board by adding traditional payment methods. On the other hand, its mobile application allows users to stay in touch when on the go.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Crypto Futures Trading with FTX

    Crypto Futures Trading with FTX

    FTX EXCHANGE (INCLUDING FTX INTERNATIONAL AND FTX.US) ARE NO LONGER IN OPERATION

    Both exchanges have filed for bankruptcy. Subsequently, the exchange was “hacked” and more than US$600 million worth of cryptocurrencies drained. The hacker is strongly rumoured to be a former FTX employee. For more about how this story unfolded and the latest news, check out these articles:

    What is futures trading?

    Newcomers to cryptocurrency and digital asset trading must navigate a complex sector filled with acronyms and technical jargon, as well as dozens of ways to trade across multiple exchanges.

    One option newcomers may have heard of, and which they may want to learn more about is futures trading. 

    At first glance, this seems like a complicated way to invest, but the team at exchanges like FTX do their best to make the process as straightforward as possible.

    What are futures?

    Futures are a type of derivative financial contract that creates an obligation for the parties to exchange the asset at a price and date that is predetermined. 

    The buyer is obliged to buy that asset, and the seller has to sell the asset, even if the price of the asset has gone up or down. 

    Think of future trading as a fixed price sale in the future. You agree with someone on a price that is higher or lower than the current price, and then in the future, the sale gets executed at the same agreed price. 

    The underlying assets in the contract can be anything from a set of cryptocurrencies to real estate or any other commodity. The contracts are designed to have a detail of the quantity of the underlying asset, and also help in the execution of the trade on a trading platform. 

    Why is it called futures trading?

    Futures are generally named by the month they expire. For example, a January gold futures contract will expire in January and is based on gold as an underlying asset. Similarly, you can also find contracts for other commodities as well. 

    Traders usually use the term futures broadly for a whole asset class. However, there are multiple futures contracts available based on different assets. These future contracts include: 

    • Commodities such as crude oil, corn, wheat, and so on
    • US bonds, or any other government-backed financial bond
    • Precious commodities like platinum and gold
    • Index futures such as the Dow Jones Industrial Index

    Examples

    A very good example of a contract available on FTX is the Donald Trump 2024 futures contract. 

    This is a contract that allows traders to ‘bet’ whether Donald Trump will return to the White House following the next presidential election in 2024. 

    The contract expires on $1 if former president Donald Trump wins the 2024 election and it expires at $0 if he loses the election. The contract specifically also specifies other scenarios in which the contract expires early, for example, if he decides not to run in the future presidential election. 

    So if anyone invests $100 right now into the contract they will get 1063 positions of the contract which may become worth $1063 if Trump wins, and if he loses the amount would become zero. 

    The leverage used by the futures market is usually high. Leverage is a process in which a buyer can purchase the contract even if they enter it with a fraction of the contract’s value. The buyer only needs to come up with a fraction of the money, while the remainder is put up by the broker. 

    One of the most important things in futures trading is the exchange, where the whole trade gets executed and settled. As futures trading also involves physical exchange, it is important to have a good exchange with a stellar reputation backing up your trade. However, it should be noted most futures contracts are for people who speculate on the trade.

    Difference between options and futures contracts

    For people who are new to futures, it is important to understand there’s a difference between futures and options. An options contract does not put an obligation on the buyer or the seller. In the American way of doing business, it gives them the right to execute the trade before the expiration time, while in Europe the right is given after the expiration time. 

    In a futures contract, the buyer has to take possession of the underlying asset, and subsequently, the seller has to sell him that asset, they can settle for the cash equivalent. However, the trade has to take place. 

    The buyer also has the option of loading off their position any time before the trade expires to get rid of their obligation. This is one thing that is common in options as well as futures trading giving an advantage to the buyer to benefit from the leverage holder’s position before expiration. 

    FTX Exchange

    Hundreds of platforms deal with crypto futures trading, however, traders need to be careful about which one they choose. They need to select a platform based on their preferences. 

    FTX has been one of the most promising entrants in the futures trading domain and has been taking up market share. The platform is slowly gaining a lot of traction and is widely considered to be one of the best platforms for futures trading. So, if you are interested in futures trading, FTX should be considered. 

    FTX was founded by Sam Bankman-Fried in 2019. He is also the founder of Alameda Research, a cryptocurrency, and blockchain research company that creates specialized algorithms for trading cryptocurrency. He is also a high-profile trader and created FTX as a trading platform that specializes in margin trading, futures trading, and leveraged trading. The exchange is backed by Binance, the biggest crypto exchange in the world, in what has been termed as a ‘strategic partnership’.

    The FTX exchange was founded due to the SBF’s quest for a crypto trading platform that had it all from a trader’s perspective. He wanted a trading platform that put traders at the heart of the experience and designed FTX to cater to trader’s every need. 

    Simplicity, security, and abundance of features were made important parts of the FTX core philosophy. Even though the exchange was designed for traders, the UI/UX was kept simple and intuitive, so novices don’t feel overburdened.

    To get started with FTX exchange, check out our FTX Exchange Guide.

    What makes FTX futures different from regular futures?

    The futures trading on FTX is a little different from other exchanges that offer futures contracts. 

    FTX futures are settled using stable coins. The settlements are made using stable coins as collateral and regular crypto cannot be used. This means that the volatility of crypto has no real effect on the users. This also gives the users a USD-based settlement exposure which means that you can use USD as the base currency for all your collateral and contracts, without the need for a bank account. Being in the crypto space also makes it easier for the position to be shifted around.

    To avoid clawbacks, FTX futures has a unique program for providing backstop liquidity. The backstop liquidity is provided to accounts that are about to go bankrupt. This prevents the exchange from clawbacks. 

    Backstop liquidity is the assistance from the exchange that helps in creating a secondary source of funds for liquidity when the primary can’t cover it, in case of a bankruptcy event. It also stops the buyer from making additional payments to the seller in the case, which are called clawbacks.

    The margin calls on the platform are measured and careful which avoids exposure to major price dislocations and huge losses.

    How to post collateral?

    In FTX futures the collateral is based upon stable coins and you do not have the option to post collateral in other cryptocurrencies. The current stable coins that are accepted include TUSD, USDC, and PAX. 

    For you to deposit or withdraw collateral you can go to your wallet on the FTX exchange and deposit USDC, PAX, or TUSD in your wallet. You can deposit them through a credit card or wallet transfer as well. 

    All margins posted on the wallet are in USD in your wallet by default, even if you fund it with stable coins the balance is shown in USD. 

    The collateral has a weight difference for each stable coin, in the case of USD fiat, the weight is kept at 1 meaning you can keep the collateral at the same amount. However for USDT, it is 0.975, for BTC it is 0.95 and for ETH it is 0.9 which means for the collateral to be high you have to have more collateral. This means that for $100 invested in USDT the collateral is at $97.5 while for the equivalent amount in  BTC it is $95.

    You can use the same collateral pool for all of your positions, by default all currencies that include USD, non-USD fiat, stable coins, and some cryptos can be counted as collateral. Cross margin is used for the account as every sub-account has its collateral wallet which is central to that account. Sub-accounts are considered as accounts and each sub-account has its own collateral. If you want isolated margins you would need to create a sub-account for each margin pool.

    How do Futures expire?

    The futures contract expires based on the set date of expiration. For example, a quarter future contract will expire every quarter between 2 am and 3 am UTC. Once the futures contract has expired the collateral amount gets credited into the seller’s account.

    What are perpetual futures?

    Perpetual futures are based on contracts that have no expiration date. The perpetual contracts work hour-wise, with each hour the contract has a funding payment.

    This has a function of keeping the price of perpetual futures according to the index which is underlining it. The price can be kept stable without the position closing down or expiring. 

    How can I trade futures?

    FTX is simple, go to the FTX website and you’ll see the registration page. Simply sign up with the email address you want to create your account with.

    Sign up for FTX
    Sign up for an FTX account

    Once you have opened an account the next thing to do is to add funds to the exchange wallet. Depositing your funds into the FTX exchange can be done either through connecting it with an existing crypto wallet or you can deposit funds directly through using a credit card or a debit card.

    Deposit to FTX
    Deposit to FTX

    Once your funds have been deposited you can go to the ‘Markets’ tab on the front page:

    FTX markets
    FTX markets

    In the ‘markets’ tab, you would get the following view, where you can see different futures contracts listed. The FTX exchange offers the largest collection of altcoins futures in the business. 

    FTX markets page
    FTX markets page

    You can also see the timed futures, for example, December expiration futures, as well as perpetual futures in the list as well. 

    The exchange also offers futures on US-based stocks and commodities as well.

    FTX US stocks and commodities futures
    FTX US stocks and commodities futures

    Once you have decided you want to trade a future, you select the future you want to trade and you get taken to the console. The console looks something like this:

    FTX trade console
    FTX trade console

    At the middle of the console you can look at the trading window which has the graphs displayed. 

    The top right corner shows you the index details as well as the price of the futures contract, along with its expiration. The bottom right shows you details of the collateral you have available, and the leverage can also be set from there as well. 


    Coming down from the console you can come to the order book as well as the order execution tab and the market trades tab:

    FTX order book
    FTX order book

    The console of the futures tab is designed with professional traders in mind; the console has each functionality that a trader would require. 

    The traders can monitor the price through the grid as well as make reference lines on the console as well. You can also add a variety of indicators to the console. The index price shows you the average of all the exchanges in the area, it also shows you different details as well.

    Below the console window, you can take a look at the current positions you have in the market as well as the previous positions you have had.

    The futures trades can be made through the console easily by keeping the collateral in your wallets. Once you have the collateral you can start trading futures through the exchange easily. 

    Conclusion

    Hopefully, this guide has given you an insight into the world of futures trading and gives you an oversight of how traders can and do use this method to make money on digital asset markets.

    FTX is a great place to trade futures and to learn more about this exciting sector of digital asset trading, offering users a simple and easy-to-understand interface.

    As with all investments, people should take care and ensure they have an appropriate trading risk mitigation strategy in place to manage their portfolios. Always make sure you never invest more than you can afford to lose. The cryptocurrency markets are by their very nature extremely volatile, with prices moving much more sharply than traditional markets, both up and down. 

    Check out our other FTX guides

    Frequently asked questions

    Are there any fees for futures trading on FTX exchange?

    FTX uses a tiered fee structure for futures trading which starts at 0.020% for maker fees and 0.070% for taker fees. Frequent traders can get discounted trading fees up to 0.00% and 0.04% for maker and taker fees respectively.

    Can you trade crypto futures as a United States resident?

    This depends on the policies of each cryptocurrency exchange, but generally, residents of the United States are not permitted to trade crypto futures. A few exceptions are the Chicago Mercantile Exchange (CME) and the Cboe Options Exchange.

    Is crypto futures trading safe?

    Trading in crypto or Bitcoin futures, or even cryptocurrency trading generally involves risks. One notable risk is the inherent volatility of cryptocurrency prices which can fluctuate greatly on a daily basis. Combined with leverage trading, this can hugely amplify any losses you may suffer if the market does not go in the way you anticipated.

    How can you mitigate risks in crypto futures trading?

    Some traders use stop-loss or take-profit levels. These will close trades that are losses or before the market trend changes. These can help traders because it works automatically, so the trader does not need to be at their computer.

    Another way to mitigate risks in crypto futures trading is avoiding emotional trading. For example, some traders feel FOMO (Fear of Missing Out) or revenge trade by “doubling down” when making a loss in an effort to minimise the loss. Emotional trading can in fact lead to further losses because it is not well thought out and researched.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • CEX.IO Exchange Review (2023): One of the Leading Cryptocurrency Platforms

    CEX.IO Exchange Review (2023): One of the Leading Cryptocurrency Platforms

    CEX.IO is a secure and user-friendly cryptocurrency exchange platform that enables users to easily buy, sell, and trade digital assets. In this review, we will share all about CEX.IO, it’s brief history, digital currencies you can buy, sell and trade, then the advantages and disadvantages of the platform.

    Sign up here to get started.

    What is CEX.IO?

    CEX.IO is a legitimate and safe cryptocurrency exchange platform that supports multiple deposit types and different digital assets. It is suitable for both advanced and beginner users who are looking to buy and sell cryptocurrencies. CEX.IO LTD, the company behind the exchange, is registered in the United States as a Money Services Business and is licensed by the Financial Crimes Enforcement Network (FinCEN). The exchange has also expanded its services within the US, with MTL licenses that can serve 48 different states.

    CEX.IO is a cryptocurrency exchange that provides users with a level two DSS certificate for added security. However, it is still vulnerable to hackers due to the vast amounts of different currencies stored on the platform. To ensure your cryptocurrency is safe, it is recommended to store it in a secure wallet. Sample secure wallets are MyEtherWallet or Exodus. CEX.IO is a reliable exchange, but users should take extra precautions to protect their digital assets.

    Key Features of CEX.IO

    CEX.IO key features include:

    Margin and Spot Trading. CEX.IO offers trading digital assets with leverage on with their own Broker. Spot trading with place limits and market orders.

    Mobile Application. Download CEX.IO to buy, sell, earn and exchange crypto anywhere and on the go. Their app is available both on Google Play and iOS App Store.

    Trading API. Traders can automate their cryptocurrency trading with CEX.IO’s reliable and stable API.

    Instant Buy using Bank Cards. Credit or Debit Cards are a available option to buy cryptocurrencies on CEX.IO with only just a few clicks.

    Multiple Fiat Currencies Available. There are a lot of available fiat currencies to choose from, so traders will do fewer trades and less fees.

    Key Advantages of CEX.IO

    Customer Support

    CEX.IO provides an extensive support section to help users understand the platform. If you can’t find the answer to your question, the platform offers an easy-to-use email support form to get the help you need.

    Multiple Fiat Currency Choices

    At this exchange, you can trade multiple cryptocurrencies with your preferred fiat currency. With no need to convert to Bitcoin first, you can save on fees by making fewer trades.

    Suitable for Beginners

    CEX.IO offers a user-friendly platform with a clean and clutter-free interface, making it easy to navigate and ideal for beginners. Advanced trading windows are also available, providing a pleasurable experience for all users.

    Margin Trade Options

    Margin trading options can be a risky form of trading, and is not recommended for beginners. If you’re looking to try it out, CEX.IO Broker offers commission-free margin trading options.

    Registered and Secured

    The USA’s Financial Crimes Enforcement Network (FinCEN) has registered the company as a Money Services Business. It has also been awarded a Level Two Data Security Standard (DSS) certificate. CEX.IO security is tested as it has never been hacked before.

    Key Disadvantages of CEX.IO

    Trust in Security

    Even if they have never been hacked before, it is essential to exercise caution when using any exchange. No platform is completely secure. To ensure the safety of your funds, it is recommended to not leave any money on the exchange. This is for both fiat currency or cryptocurrency.

    Which Coins Can You Buy on CEX.IO?

    CEX.IO offers users a wide range of digital assets to buy with either Bitcoin or fiat currency, including 108 cryptocurrencies and 228 trading pairs.

    It is a popular platform for buying and trading cryptocurrencies, offering a wide selection of the most well-known coins and tokens. Users can easily exchange their cryptocurrencies or use fiat money to purchase their desired digital assets.

    Payment Methods, Fiat Currencies, and Fees

    CEX.IO is a great choice for users from many countries, as it accepts a wide range of fiat currencies. Here is the list for their supported fiat currencies:

    • United States dollar (USD)
    • Euro (EUR)
    • Pound Sterling (GBP)
    • Ruble (RUB)

    There are also various payment methods accepted on CEX.IO:

    • VISA
    • MASTERCARD
    • S.W.I.F.T.
    • ACH
    • Faster Payments
    • Sepa
    • QIWI
    • Skrill

    CEX IO EU Limited offers a wide range of payment methods to make it easy for new users, including card processing services for clients from the European Economic Area (EEA).

    They offer competitive trading fees, ranging from 0.25% for market takers and 0.15% for market makers, down to as low as 0.01% and 0% respectively. The fees depend on the amount of crypto assets traded, making it an attractive option for those looking to trade crypto in smaller sums.

    CEX.IO Review: Account Verification

    Here are the various levels of accounts on CEX.IO:

    With each account tier, customers can enjoy additional payment options, higher transaction and withdrawal limits, and other benefits.

    For more advanced users, corporate accounts offer additional features. However, we won’t be delving too deeply into these features here.

    Verified accounts offer many advantages, so even new users may want to reach this tier.

    Basic Accounts

    Create an account with CEX.IO and start trading with Visa or MasterCard. With a basic account, you can deposit fiat currency and start trading right away.

    The recommended maximum and minimum deposit amounts for individual payment methods vary.

    Verified Accounts

    Verifying your identity with CEX.IO is easy and comes with several advantages. To increase your daily deposit and withdrawal limits or withdraw fiat funds, users must complete the verification process. In this CEX.IO review, we’ll explain exactly how to do it and the benefits of having a verified user account.

    How to Get a CEX.IO Verified Account: Stage 1

    Verifying your account with CEX.IO is a straightforward process that requires you to submit some personal information and documents to reach the verified account tier. This is to ensure the company complies with anti-money laundering (AML) and know your customer (KYC) regulations. Read on for our CEX.IO review of the account verification process.

    To ensure a successful upgrade of your CEX.IO account, please follow the steps below carefully. Make sure to submit all the required documents in the correct format, as CEX.IO will reject any requests that do not meet their standards. Failing to do so could mean missing out on a great opportunity to buy or sell a cryptocurrency at a favorable price.

    1. To complete the process, you must provide information from a valid government-issued identification document, such as a passport, ID card, or driver’s license.

    2. Complete the form with your gender, first name, middle name (if applicable), last name, date of birth, place of birth, contact number, and a link to social media profile (optional).

    3. After that, users must enter their residential and permanent addresses. If the two are the same, they can check the box labeled “same as residential” which is located next to the “permanent address” fields.

    4. To verify your identity, submit a scan or photograph of a few identity documents that meet the necessary requirements:

    • The issue date must be in the future (document must be valid on the day it is submitted).
    • Copies of both sides of the document must be submitted.
    • Scanned images must be in full color and in a high resolution.
    • Documents must be in either jpg, gif, png, tiff, or pdf format.
    • The file must be no larger than 15MB.
    • The photograph or scan must be no older than three months.
    • Documents must be completed using the Latin alphabet (a, b, c, d
)

    How to Get a CEX.IO Verified Account: Stage 2

    CEX.IO requires users to submit their identity document, a selfie of themselves holding the document, and a proof of address for verification.

    Accepted government-issued identity documents for the above form include national IDs, passports, and driver’s licenses.

    To ensure a clear and compliant selfie with your identity document, it is recommended to enlist the help of a friend or family member to take the photo. The photograph must meet the following criteria:

    • You must look directly at the camera
    • Use a light or neutral background color 
    • The image must be in full color 
    • No red-eye
    • No hats, sunglasses, headbands, or bandanas should obstruct the view of your face
    • The information on the document must be clearly visible.

    Acceptable proof of residency documents include photographs or scans that include your address (as stated in the verification form). The following will be accepted as a proof of residency document:

    • Utility bill (not a mobile phone, TV contract, or printed internet bills).
    • Electricity bill.
    • Bank statement.
    • Tax return, or council tax bill.

    CEX.IO allows customers to provide other forms of proof of residency, such as utility bills, bank statements, and government-issued documents, as long as they are not electronic bills, online screenshots, mobile phone bills, or credit card statements.

    CEX.IO Review: Advantages of Having a Verified Account

    Verified accounts on CEX.IO offer users access to more payment methods, higher deposit and withdrawal limits, and the ability to withdraw in fiat currencies. This makes verifying an account on CEX.IO an essential step for users who want to make the most of their experience.

    With an account on a higher tier than basic, you can deposit and withdraw funds using bank transfers and any of the supported cryptocurrencies at CEX.IO.

    The higher-tier accounts have no limit on deposits and withdrawals, however, each payment method has its own recommended limits. These limits are not listed here due to their large size.

    CEX.IO Review: Who Should Use CEX.IO?

    Why CEX.IO is Good for Beginners?

    CEX.IO is a great choice for beginners looking to buy and sell digital currency. The user-friendly interface makes it easy to navigate, and the support section has many FAQs to help new traders and investors. Advanced buying and selling options are available, but they are not immediately visible, making the process less intimidating. CEX.IO also offers a secure platform with two-factor authentication, and a variety of payment methods, including credit cards, bank transfers, and cryptocurrency. With its low fees and reliable customer service, CEX. (Clonazepam) IO is an ideal choice for those just starting out in the world of digital currency.

    Why CEX.IO is Good for Advanced Users? 

    CEX.IO is also a great platform for advanced users looking to buy and sell cryptocurrency. It offers a clean and easy-to-navigate platform with all the buying options you’d expect from an advanced platform. It also allows users to trade on a margin (using borrowed money) and has no limits for verified users. CEX.IO provides a variety of different deposit and withdrawal methods, making it easy to spin up huge profits and withdraw them with no trouble. With its advanced features and secure platform, CEX.IO is the perfect choice for experienced traders looking to make the most of their cryptocurrency investments.

    Conclusion

    CEX.IO is one of the world’s most popular fiat-to-crypto exchanges, offering users multiple digital assets, numerous deposit options, and a user-friendly design. It’s no wonder why CEX.IO has been so successful over the years.

    If you’re looking for an alternative to CEX.IO, you may want to consider Binance or KuCoin, two of the most popular cryptocurrency exchanges. Both offer a wide range of features and services, so you can find the right platform for your needs.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • WAX ($WAXP): The King of NFTs?

    WAX ($WAXP): The King of NFTs?

    WAX Protocol ($WAXP) stands for Worldwide Asset eXchange. They are one of the safest and most convenient ways to create, buy, sell and trade virtual items i.e. non-fungible tokens (NFTs) through an integrated DPoS blockchain platform designed to work hand-in-hand with a microservice layer to improve the digital goods market’s infrastructure. Obtaining WAX knowledge has enabled innovators to develop a highly-connected and sophisticated marketplace that has brought a lot of value in digital goods projects.

    This information here will help you learn how to incorporate the WAX Protocol within the WAX Platform and how the two tools complement each other. It’s worth noting that the WAX Platform is composed of the WAX Protocol and a microservice layer.

    Learn more about WAX with our interview with Evan Vandenberg, Director of Business Development at WAX.

    Profitable digital collectibles and blockchain gaming (with WAX blockchain)

    Background

    The WAX platform was founded by William Quigley and Jonathan Yantis, together they have vast experience in blockchain technology. Quigley is also the Managing Director of Cashel Enterprises, a cryptocurrency-focused investment vehicle which has incubated and invested in over 40 blockchain and cryptocurrency projects. Meanwhile, Yantis also works as WAX’s CEO.

    The global growth of the digital goods marketplace has experienced enormous challenges for the past decade, but WAX technology has helped in finding solutions that spur the development of the sector. Although some users think that the technology has arrived late when challenges are already overwhelming, it’s actually the perfect time since blockchain has matured enough to satisfy the requirements for the WAX system to succeed.

    As the digital goods market continues to expand, it’s essential to acknowledge that tokenized consumer products and virtual items have played an instrumental role in blockchain growth. Virtual items like in video games alone have generated more than USD$140 billion for the market. On the other hand, tokenized consumer products have realized over USD$1.8 trillion.

    Considering that WAX attempts to offer remedies for a marketplace with a combined market value of over USD$2 trillion, it’s easy to realize the magnitude of the problem. The first year of incorporating WAX Protocol operations on major players like VGO and dApps has realized over USD$150 million worth of trading volume.

    What is WAX?

    Wax is a marketplace for digital assets, serving more than 400 million online players that sell, buy, and collect in-game items. Their suite of blockchain-based tools allows people to trade digital or physical items instantly and securely to anyone in the world. WAX’s platform brings together a community of collectors and traders, buyers and sellers, creators and gamers, merchants, creators of dApps and even game developers.

    Examples of what WAX can do include buying and selling gift cards to people across the globe, or building your own online store using the B2B tools created by WAX. WAX also allows people to create NFTs and send them to others.

    WAX Blockchain

    The WAX network works on a consensus model that relies on various WAX Guilds to enhance blockchain production. WAX utilizes Delegated Proof of Stake (DPoS), which depends heavily on WAX Guilds to ensure success in blockchain generation.

    The WAX ecosystem has witnessed considerable growth due to the incorporation of the WAX Token Model, which is designed to ensure success in various aspects such as voting, staking, and rewards. The Wax Staking Reward is a feature that has encouraged community participation because it allows users to vote and access rewards.

    With WAX tokens, users have immense options to explore. For instance, if staked WAX tokens haven’t been placed, a token holder will require platforms such as Scatter and Lynx to automate the process.

    WAX Tokens ($WAXP)

    WAX tokens ($WAXP) power the entire WAX ecosystem. They are used to reward participants in the chain and enable contributors to receive ten times the number of tokens purchased. This strategy makes it easier to calculate all microtransactions on the platform.

    One benefit of owning WAX tokens is that you get to earn even more tokens by voting for WAX guilds. This is called the WAX staking reward. This process is hassle-free and takes just a minute or two to join. Furthermore, you can unstake your tokens at any time.

    WAX and DeFi? WAX’s new tokenomic model explained

    In a recent announcement, WAX mentioned they will have a new tokenomic model hoping to capitalise on the rapid growth and popularity of NFTs and decentralised finance (DeFi). Their plan is to link the value generated from creating, selling and trading NFTs to Ethereum. WAX considers it different from other DeFi platforms because they consider these activities to be able to provide a sustainable source of value to stakers.

    How the new WAX inter-blockchain tokenomic model would work is that the operational functions of NFTs would still be done on the WAX blockchain, whilst Ethereum will become, “…the capital vault of the WAX NFT empire”. There are 4 components to this new tokenomic model, namely:

    • WAXP to Ethereum bridge: this new bridge will enable WAXP token holders to convert their tokens into WAXE.
    • WAXE: WAXE is a new Ethereum ERC20 utility token. Participants of the WAX tokenomics will need to burn their WAXP tokens to get WAXE tokens via the Ethereum bridge. They would then stake the WAXE in the Ethereum Distribution Contract.
    • WAXG: WAXG is a new Ethereum ERC20 governance token which will be distributed to WAXE stakers based on a set timetable and proportionate to their percentage of the WAX Economic Activity Pool. Token holders will be able to govern the allocation and distribution of economic value on the platform.
    • WAX Economic Activity Pool: This is a smart contract which will accumulate a percentage of generated WAX fees to be converted to ETH for distribution to WAXE stakers or given to WAXG token holders that decide to burn their tokens.
    WAX tokenomic process
    WAX tokenomic process (Image credit: Medium)

    For full details of WAX’s new tokenomic model, check out their article on Medium.

    WAX Guilds and Rewards

    A WAX blockchain contains 21 WAX Guilds that qualify to earn a reward. Remember, blocks can only be produced after the chain meets the threshold to earn rewards. The rewards are awarded depending on the number of blocks that every WAX Guild can produce. Standby Guilds are considered as backup operators that help to generate a chain on request.

    WAX Performance Metrics

    WAX has been configured in such a way that it releases two blocks per second. It’s worth noting that each WAX Guild can only produce one block at a time. If a block fails to come out at a specific time, other blocks will jump the queue to ensure a continuous process.

    A block that has been skipped will contend for a space in the memory pool to compete for guilds’ inclusion in the next turn. More than 3000 blockchains are usually transacted each second in the WAX system. The transaction rate is two times swifter than the VISA system can procure in the same period.

    The Future of WAX technology

    WAX Platform doesn’t only work to offer remedy for the current problems but also offers a roadmap for future operations. WAX Developer Hive is tasked with the duty of technical service provision, tutorials, and other simulations. Besides, WAX developers equally provide vital resources that make implementations successful.

    The technology has also incorporated features that will make it convenient to evaluate whether the system passes the transparency test among communities.

    Also, there’s room to allow interoperation with other chains to enhance performance. NFTs are among the candidates that need microservices and can thrive with the WAX Platform.

    Conclusion

    Gamers from across the world can substantially benefit from its secure and decentralized digital items marketplace. As WAX Platform continues to provide more improvements, developers will find several ways to create features that would better serve gamers in terms of digital goods trading.

    The platform is also expected to play an instrumental role with digital media and is set to welcome over three billion users in the coming five years.  

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Newsletter #17: Bitcoin markets choose between good and bad news

    Newsletter #17: Bitcoin markets choose between good and bad news

    Do you want to hear the good news
or the bad news first? This has been an age old question which the Bitcoin markets had to grapple with this week. As we will see below, there IS a correct answer to this
but has Bitcoin chosen wisely?

    All I want for Christmas is a Ledger!

    Ledger is doing a crypto starter bundle! Get a USD$25 voucher to buy crypto with every Ledger Nano X purchase! Limited to 5,000 vouchers and only available until 29th December 2020!

    Gift yourself or your family a bundle they truly want! Say NO to hand cream gift sets and socks!

    Check out our Ledger Nano X review and CLICK HERE TO BUY!

    Give better gifts this Christmas!

    Market Sentiment: Going sideways?

    This week’s market price action wasn’t very exciting, with Bitcoin and Ethereum mostly going sideways. On 12th December 2020, we saw a reaction that is still continuing today and has brought $BTC back to the $19000 area and $ETH closer to $600.

    $BTC and $ETH (daily charts) at weekly resistances
    $BTC and $ETH (daily charts) at weekly resistances

    Both coins are still at weekly resistances trying to build momentum around the 21 EMA (Exponential Moving Average) on the daily chart. We could expect another attempt to pass ATH in the next few days!

    Key news this week

    Big investors keep accumulating

    Big funds/companies are buying and accumulating Bitcoin and Ethereum.

    Massachusetts Mutual Life Insurance Company (MassMutual), has just bought $100M of $BTC through NYDIG, a fund management company in New York. This is reportedly their first Bitcoin purchase and is equivalent to less than 1% of their entire investment account worth around USD $235 billion.

    Grayscale has also increased their holdings. Whilst they are not new to investing in crypto, they have just bought another 130000ETH, reaching a total of 3 million tokens in their accounts.

    Microstrategy announced they had completed “a $650M offering of 0.75% Convertible Senior Notes Due 2025”, to invest in $BTC in accordance with their reserve policy. A few days earlier, the CEO Michael Saylor, tweeted that they hold approximately 40,824 Bitcoin.

    The interest in crypto by financial giants points to increased demand from the wealthy as a form of diversification and are them betting on prices to increase in the future.

    Mt. Gox’s reimbursement deadline approaching

    15th December 2020 will mark the next deadline for Mt. Gox Exchanges’s creditors to hopefully get back what they lost on the platform. The Exchange, one of the most known at the time and launched in 2010, ceased to operate in February 2014 after filing for bankruptcy. A whopping 860,000 $BTC were “missing” of which 200,000 has been “recovered” (and this does not even include other cryptocurrencies which also went “missing”). In 2015 new evidence by Tokyo security company WizSec showed that “most or all of the missing bitcoins were stolen straight out of the Mt. Gox hot cryptocurrency wallet over time, beginning in late 2011.”

    Users of the platform should expect to receive a total of 140,000 $BTC ($2.6 billion dollar worth) which are now in the hands of Nobuaki Kobayashi, the Japanese lawyer in charge of the process.

    Nothing is certain however as the refund deadline had been already postponed several times in the past, the last of which was in October 2020. There is also a serious concern in the market as to the possible consequences of a large Bitcoin market sell-off by victims when they receive their funds after 6 years. Considering Bitcoin in 2014 was worth less than $1000, this would represent now a roughly 20x on their re-acquired funds!

    Thoughts on the Mt. Gox refund

    Singapore’s DBS to launch digital exchange with crypto

    After rumors appeared a few months ago, it is now official: Singapore’s DBS will be the first bank to launch a digital currency exchange.

    The platform will only be open to institutional and accredited retail investors. There will be 4 major tradable cryptocurrencies: $BTC, $ETH, $XRP and $BCH, paired with 4 FIAT currencies: USD, SGD, HKD AND JPY.

    The Exchange will also offer Security Token Offerings (STO) and a platform for tokenized assets like bonds, private equity funds, real-estates and so on. DBS Chief Executive Piyush Gupta said:

    “I believe that the time is right for this”, and added “We are on the cusp of a massive tokenization and therefore you’ll find tokenization of all kind of assets around the world and I think more and more exchanges will start dealing with the tokenized assets”.

    U.S. Congressmen manifesting doubts on new self-hosted wallets regulations

    A couple of weeks ago we mentioned that Coinbase CEO Brian Armstrong was concerned regarding rumors that the U.S Treasury was planning to impose regulations on self-hosted cryptocurrency wallets.

    Self-hosted wallets, whether online (hot) like Metamask or offline (cold) wallets like Ledger and Trezor, let you retain personal and total access to your funds, without any intermediary entities or third parties. The owner possesses their own private keys and takes full responsibility of their funds. Most importantly, wallets don’t usually need KYC procedures to set up. Learn more about hot and cold wallets, and their pros and cons.

    Armstrong stated his thoughts (shared by many other prominent names in crypto space), among which the possibility that regulations could result in being more harmful than anything else. This is because it could essentially exclude those who cannot obtain the documents and proofs for regular KYCs, and those are usually the most disadvantaged groups who may already be excluded from the financial system. Furthermore, this proposal could be a step back in innovation by the US, leading companies and users to bypass them for other countries.

    A few days ago Warren Davidson, U.S. Congressman serving Ohio’s 8th District, together with a few colleagues, embraced these opinions by sending a letter to U.S Treasury. The letter also points out that “multiple reports have shown that digital assets are not widely used by illicit actors”.

    Warren Davidson’s letter to the US Treasury

    What about Europe?

    Meanwhile in Europe, the development of the digital Euro continues. However sources have indicated that the French Finance Ministry is preparing “to not only harden know-your-customer (KYC) rules for crypto firms but also regulate crypto-to-crypto transactions, according to Simon Polrot, president of French crypto association ADAN.”

    This apparently comes as a response to recent terrorist attacks when 29 people were arrested for illegal terrorism funding via cryptocurrencies.

    Other key news

    • Canada has become the first country to have an Ethereum-based Fund listed on a major stock exchange. The Ether Fund (TSX:QETH.U) is offered by 3iQ Corp, a digital asset manager based in Toronto. The Ether Fund is trading at around $11 per share today.
    • The second giveaway of DCEP (China’s National Digital Currency) has kicked-off on in Suzhou, China, on 12th December 2020 for 10,000 winners. Last week, the Hong Kong Monetary Authority (HKMA) also confirmed it is working with the Digital Currency Institute of the People’s Bank of China on technical pilot testing of DCEP for cross-boarder payments between Mainland China and Hong Kong. You can read more in our article.
    • Messari, a leader crypto Research and Data company, has recently listed their take on the “top 10 people to watch in 2021”

    $YETI Index: the Yearn ecosystem in one token

    After all the recent announced collaborations between the Yearn Finance team and many other big Defi projects, such as Cover Protocol ($COVER) or Sushiswap ($SUSHI), the Yearn Ecosystem Token Index, $YETI, has been created by Powerpool ($CVP).

    The Index comprises of 8 tokens: $YFI, $SUSHI, $CREAM, $AKRO, $COVER, $K3PR, $CVP, $PICKLE with a proposed weighted distribution of 35% for $YFI, 17% for $SUSHI and 8% each for the rest. So investors now have the chance to invest in the entire Yearn ecosystem in one token, receiving “cash flows from Vault strategies applied to composite tokens, and vote on proposals in the Yearn ecosystem governance using PowerPool’s meta-governance approach.” It will also allow holders to save on gas fees which would be normally required to stake multiple tokens.

    Speaking of $YFI, this week we have also witnessed the first gasless (for users) transaction vault deposit on Yearn.Finance.

    Red flags of the week

    DeTrade Fund, first case of deep-fake in crypto?

    DeTrade Fund, a supposed upcoming arbitraging and front-running Defi project has vanished with 1450ETH a few hours before listing.

    The team appeared to be non-anonymous, with public Linkedin profiles, a publicly registered company, a Twitch profile and a video where the “CEO” Mark Jensen, spoke to the community. The video has quickly become famous on crypto Twitter with the community suspecting it was a deep-fake used by crypto hackers. Another theory circulating around the community is that the hackers hired an actor to impersonate the CEO.

    Video from DeTrade “CEO” Mark Jensen

    Through two rounds of presale investments, the DeTrade fund team managed to raise a remarkable amount of 1,450 $ETH in a few hours. Their contracts were audited by Solidity Finance which immediately raised a few concerns in their audit report, assessing that the team was in charge of too much power over users’ funds. It is likely that the team took advantage of this and stole the presale funds sometime between the second presale and the official listing which should have taken place a few hours after. (Tramadol)

    Several hours later and probably because someone was able to trace the misappropriated funds, 70% of the stolen $ETH was sent back to investors via internal transactions.

    This “partial return is becoming more and more common in DeFi attacks. For example, Eminence’s hacker sent back 50% while Harvest Finance users only received 10% of their amount back.

    $12 million have been stolen by Compounder Finance

    On 1st December 2020, Compounder.Finance ($CP3R), a clone of Harvest and Yearn Finance, has “pulled the rug”. It looks like the anonymous team behind the project is the one to blame.

    Compounder had been audited by Solidity Finance. In chat logs between the two companies we can see that Solidity Finance pointed out that the project’s Treasury contract and updating of strategy pools is controlled by their team. Solidity Finance also pointed out that they felt this fact should be disclosed in their audit report. The exploit was exactly as pointed out by Solidity Finance. After the audit, the withdraw function was swapped with a malicious one which was later used to drain all the money in the contract to their deployer address. Nobody recognized the fraud in time so users were not able to withdraw their funds.

    The attack is composed by 4 steps and is explained in details in this post-mortem by developer Vasa and Solidity Finance.

    It is not the first time that an audited project suffered a hack and we all know quite well by now that Audits cannot guarantee 100% safety. This should always be reminded.

    A known developer of the Defi space and owner of Defiyield.info was also a victim of the attack. He is also investigating the matter and working towards filing a case with the relevant enforcement authorities.

    Fake Deriswap tokens

    Malicious actors have recently created various fake Deriswap tokens to take advantage of the hype surrounding this latest experiment from Andre Cronje. The malicious actors would create tokens with similar names to Deriswap and approve it for trading on Uniswap to entice people to buy.

    Let’s remember that Deriswap doesn’t have any official token at the moment!

    Boxmining happenings

    • Libra is now Diem! Everything you need to know on Facebook’s cryptocurrency!

    Diem ($DIEM) – Facebook’s Libra 2.0

    • In case you missed it check out our podcast interview with Geralt of CyberFi where we discussed automated trading, Ethereum interactions such as unstaking and more.
    • Velo Protocol is building out the biggest payment network in South East Asia with its partnership with Lightnet and Visa. The end goal is to create payment solutions for the under-served micro, small and medium enterprise lending market in Asia.
    The next XRP killer? Velo Protocol is making HUGE moves

    Click here for back issues of our newsletters!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Exeedme (XED): allowing every gamer to earn with blockchain and NFTs?

    Exeedme (XED): allowing every gamer to earn with blockchain and NFTs?

    Exeedme (XED) is a blockchain-powered gaming tournament platform designed to finally give professional gamers the income and recognition they deserve.

    There are over 2.5 billion gamers worldwide, making the gaming industry twice the size of the music and movie industries combined.

    But while producers and developers in the entertainment industry are able to rake in millions, the same cannot be said for gamers who find it almost impossible to earn a living playing video games.

    Although we do have cases of professional gamers generating substantial income through livestreaming, their numbers are considerably low as it requires a very high amount of creativity, skill, and time to build a big-enough audience and thrive. This challenge is what Exeedme is trying to solve.

    Background

    Francisco Varela and Nuno Fernandes teamed up to come up with this innovative idea of rewarding gamers for their devotion and skills to playing the game they love.

    To truly ensure the project caters to the professional gamer, their Head of Engineering- Arlindo Torres, is himself a game analyst and professional CS:GO player. Exeedme also has Ricardo “FOX” Pacheco Miguel, a professional CG:GO player and world champion as their Ambassador

    What is Exeedme?

    Exeedme is looking to revolutionize the gaming industry by providing Play2Earn platform for gamers, developers, and organizers a place to monetize their skills through blockchain-based gaming tournaments.

    The tournament platform is built on Polkadot, a next-generation multi-chain protocol that has grown exponentially in the last few months.

    Exeedme chose to build its system on top of Polkadot in order to benefit from its decentralized finance (DeFi) and non-fungible token (NFT) innovations. This would allow it to move fungible and non-fungible assets across multiple chains seamlessly, which could expand its horizons to larger communities.

    The Exeedme team recognizes the fact that the current game monetization models leave a lot to be desired since current models favor a few privileged gamers but do not provide an avenue for an average player to earn an income through gaming.

    Hence, Exeedme has come to give gamers a place to exercise a real sense of ownership and earn money as they play.

    Exeedme Gaming Solutions

    The central idea behind Exeedme is to provide a platform where gamers can be able to earn money from doing what they love. The platform seeks to reward gamers of all skill levels without any discrimination, which means you don’t need to become a top professional gamer in order to earn an income.

    And in this ecosystem, the biggest winners would be the game developers, as well as players.

    Virtual Assets

    Many games today have systems where they allow gamers to earn or buy virtual assets. The downside to this is that these assets cannot be monetized or transferred outside of the gaming system.

    Exeedme is looking to change all that through its XED native token, plus the use of NFTs. Gamers would be allowed to transfer their game’s “virtual assets” to different game universes, even if they are on different blockchains, which would result in an interoperable digital multiverse.

    Since DeFi and NFTs would be pre-built into the gaming platform, peer-to-peer gaming economy platforms could readily grow. These growing economies would be geared towards rewarding gamers instead of the side chain advertising industries.

    How Gamers Earn on the Platform

    Gamers can earn on the Exeedme platform in 3 ways: winning, participating, and progressing.

    To earn through winning, a gamer has to pick his favorite game to play, then stake it via funding with crypto assets. The player then selects his opponent or lets the system match him with similarly skilled players. The gamer could bet on himself to win and if he succeeds, he can take his earnings.

    Gamers can also win simply by participating and progressing in any game or tournament they play.

    In addition to the 3 methods mentioned above, Exeedme also allows players to earn NFTs when they progress such as trophies, collectibles and in-game assets. These an be used across different games, traded or monetized.

    Advantages of Exeedme

    Exeedme holds a number of advantages over the old gaming models, some of them are:

    • Exeedme’s XED tokens are far better than participation trophies that some of the other games reward. Regardless of the outcome of a game, a gamer can be assured of earning a token that can be spent. This is because every time there is a bet on the gamer winning, XED tokens are being mined.
    • Newly-minted XED and crafted NFTs can also be earned just by progressing in a game’s tournament or winning it. They are also won when a gamer reaches a milestone, completes a new mission, or achieves a higher ranking.
    • Earned XED and NFT tokens can be traded or monetized, making it a very fun way of earning.

    XED Token

    Exeedme’s $XED is their native token. Players are rewarded with XED tokens through winning or progressing in a game.

    Earn XED tokens
    Earn XED tokens (Image credit: Exeedme)

    The project has designed its platform in such a way that its governance system is led by gamers who would also be major participants on the blockchain. Accordingly, the best way to help improve the platform and push it into success would be to stake XED tokens.

    Gamers who stake the token would enjoy certain privileges like lower fees, a cut of the match fees, access to free and special tournaments, access to exclusive NFT launches, exclusive badges, and other perks.

    Exeedme would also be deploying community pools in its bid to fund general improvements to the protocol. Developers can also obtain funding through various methods depending on their project.

    XED token uses
    XED token uses (Image creditExeedme whitepaper)

    XED token metrics and tokenomics

    The XED token was listed on Uniswap and released as a Polkastater Initial DEX Offering on 30th December 2020. Details on the XED token are as follows.

    Total Circulating Supply: 100,000,000 $XED

    Initial Market Cap: $875,000 USD

    Seed/Private/Pre-Public Sale Fundraising: $900,000 USD

    Distribution and release

    Seed: $0.0125 USD, 20% released on TGE, then 10% monthly over 8 months

    Private sale price: $0.025 USD, 25% relased on TGE, then 25% monthly over 3 months

    Pre-Public: $0.03 USD, 25% released on TGE, then 25% monthly over 3 months

    Uniswap listing price: $0.05 USD

    XED token distribution
    XED token distribution (Image credit: Exeedme)

    Exeedme Use of Funds Raised

    • 45% of the funds raised will help support the product development team;
    • 30% will be for growing the ecosystem;
    • 15% will be for providing liquidity to Uniswap and other exchanges;
    • 5% will be for Legal, Regulatory and Security; and
    • 5% will be for general and administrative expenses.

    Exeedme Staking Pool

    The gaming platform would deploy community pools to fund general improvements to the protocol. Developers on the protocol would have access to various funding methods which would be determined by their project.

    For instance, XED rewards and NFT rewards pools would have access to fees garnered from tournaments. They would also be able to receive mints and melts of NFTs and fungible tokens.

    Conclusion

    Exeedme is a uniqueue blockchain gaming platform designed in a way to create a playing field for any skill leveled gamera chance to earn from doing what they love. And despite having other gaming-based blockchain protocols in the space, Exeedme is quite unique in its approach.

    While the previous gaming models do not give adequate room for gamers to earn from their skill, the innovative platform looks to correct that by providing an ample opportunity for gamers to earn from whatever skill levels they have.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • LABS Group ($LABS): bringing real estate investments to the masses?

    LABS Group ($LABS): bringing real estate investments to the masses?

    LABS Group aims to realise everyone’s dream of real estate ownership through fractionalising real estate investments.

    Traditionally, entry into the real estate industry requires a substantial investment due to the indivisibility of assets. Consequently, small investors find this asset class completely out of their reach.

    Among the few platforms trying a stab at bringing real estate to the masses is LABS Group. Through its ecosystem token and utilising decentralised finance (DeFi) and governance, its mission is to intelligently blend the centralized and the decentralized worlds of real estate to improve its liquidity.

    Check out our interview with Chairman Mahesh Harilela (or listen to the podcast).

    Tokenizing Real Estate Assets-LABS Group with Mahesh Harilela

    Background

    Mahesh Harilela, is the Company’s Chairman. Mahesh comes from one of the most prominent families in Hong Kong, which owns 19 hotel properties worldwide through the Harilela Group. Mahesh himself has certainly inherited the family’s entrepreneurial spirit and is involved in Trading, Brand Development, Renewable Energy Infrastructure, Agriculture and Education. He is also Chairman of the Board and CEO of M. Harilela Global Investments Ltd and Asia CBD Pte Ltd.

    What is Labs?

    LABS is a leading blockchain-based ecosystem for real estate investments. The platform seeks to bring more people into the space by fractionalizing investments. Compared with other legacy modes of investing in the real estate space like private equity funds, REITs, and direct investment, LABS emerges as the winner.

    For instance, it ticks crucial boxes such as low fees, governance, ownership, staking for profit, tradable, among others.

    Critical issues the protocol is trying to solve include:

    1. Costly entry and exit prices – Currently, the median entry price into the ecosystem is high. The cost rises as you enter into big cities. Apart from entry points, exit costs are driven through the roof by third parties such as agencies.
    2. Eradicate reliance on Real Estate Investment Trusts (REITs) – Although they allow pooled investments, they are majorly open to deep-pocketed individuals.
    3. Complicated access to a global network – International property ownership is a nightmare in the current state of the real estate industry.
    4. Low Liquidity – The traditional real estate market restricts investors from selling to the local market due to low liquidity.
    5. High fees – The fees range from taxes, agent fees, and transaction fees that introduce inefficiencies in the conventional market.
    LABS Ecosystem (Image credit: LABS Group)

    How Labs Tackles the Above Problems

    Labs uses different approaches to solve key issues plaguing the traditional real estate industry permanently. These are:

    Crowdfunding

    The project believes in fractionalizing real estate assets, making it possible for multiple investors to put their money in the same assets by reducing the entry costs. Additionally, it minimizes the need for investors to stretch their cash reserves unnecessarily. In doing so, it reduces the risks of losing a lot of money.

    Powering a Global Portfolio

    With digitization, the project removes the global barrier. Consequently, it provides investors with a chance to have a global portfolio of real estate assets. (contentbeta) This lowers the risks for investors. Apart from enabling them to build a global portfolio, the digitization process enables investors to mimic traditional asset features like a store of value.

    Caters to Investors Diverse Appetites

    Labs enables investors to choose between different types of assets in the industry. For example, they can select residential, commercial, industrial, or hybrid and still choose their preferred location, risk levels, and ROI.

    It Brings Blockchain and Digitization Together

    By digitizing real-world assets, the project opens them up to trading on virtual exchanges that have no geographical limitations nor opening/closing times.

    Extra benefits

    Other benefits birthed by the project are:

    1. Interaction with the DeFi scene and enabling decentralized governance.
    2. Ability to trade real estate securities.
    3. Faster and direct dividends payments
    4. Reduced and enhanced transactions.

    Liquidity Provision On the Labs Network

    1. Tokenization – This helps power an asset-backed token ecosystem that lives on the blockchain enabling other activities such as over-the-counter trading and token swapping.
    2. Trading on the secondary market – Trading of Labs’ securities leverages recognized exchanges. Note that when shares are tokenized, they are traded on a securities exchange. Such asset trading platforms enable enhanced non-stop trading, positively impacting investors’ entry and exit points.
    3. Lending – Labs facilitates lending activities on the platform using two native assets; the Labs stable token, the Labs security token (more on these later). The protocol uses these tokens to address the liquidity problem by allowing their holders to engage in collateralized lending.

    Conclusion

    By fractionalizing real estate assets, Labs eases the entry of retail investors into the industry. Consequently, it increases liquidity. Another critical Labs undertaking is digitizing these assets, effectively connecting the real estate market to the DeFi world.

    In return, it opens up the space to more possibilities such as collateralized lending, over-the-counter trading, and swapping. Additionally, the inclusion of the LABS token drives community governance that is a crucial pillar in DeFi-focused protocols.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Union Finance ($UNN): tailored protection from DeFi risks?

    Union Finance ($UNN): tailored protection from DeFi risks?

    Union Finance is providing a tailored solution which will provide protection from risks and reduce costs in decentralised finance (DeFi).

    What is Union Finance?

    Union Finance is a technology platform that combines bundled protection and a liquid secondary market with a multi-token model. The Union platform guarantees full-stack DeFi protection to all users as it seeks to reduce the risks and cost within DeFi ranging from Layer-1, smart contract, transaction completion risks, and exposure.

    Since its introduction, Union finance has had a considerable impact in the cryptocurrency space and is composed of experts with years of experience in their respective sectors. Union’s protocol offers a unique combination of traditional insurance and the blockchain’s tremendous efficiency through its broad coverage and costs-savings model specific to the DeFi sector’s needs.

    Union Finance features
    Union Finance features (Image credit: Union Finance)

    Similarities With Traditional Insurance

    Furthermore, Union’s algorithm addresses the apparent break between DeFi and CeFi unlike any other blockchain-based solutions as it provides protection to various layers of coverage and segregated underwriter exposure, with a multi-token protocol that cleanly separates governance from the market dynamics of protection buying and writing.

    Similar to traditional insurance companies, the Union Protocol prides itself on total protection and coverage under their blockchain-based bundled insurance packages. However, the platform takes it further, by utilizing the blockchain concept of decentralization, freeing the platform from “members only” models and KYC requirements. Furthermore, Union offers an effective governance process to safeguard the validity of claims and the solvency of pools to meet coverage applications.

    DeFi-Related Risks

    Union’s team also offers a secondary market enabling the management of DeFi-related risks which facilitates the protection of traders and protection writers within the DeFi ecosystem. Additionally, this frees up capital and distributes risk, allowing the DeFi sector to scale more efficiently while reflecting the current market trends.

    The blockchain solution has a distinct economic model that has sustainably grown the decentralized ecosystem, along with a capital and pricing model that balances the supply and demand curves while adapting dynamically to economical conditions set by the market and keeping transparent reporting of financial and risk key performance indicators (KPIs) to create trust and increase adoption of the protocol.

    Three-Token Model

    Overall, Union Finance’s DeFi protection platform is managed through a three-token system comprised of the UNN, uUNN, and pUNN tokens.

    Union Finance UNN 3 token model
    Union Finance’s 3 token model (Image credit: Union Finance)

    UNN Token

    UNN is the core token of the financing platform as it is used for governance purposes. UNN users are granted voting rights within the company, giving them influence on protection claims and related conflict resolution protocols, adjusting risk parameters, and adjusting incentive programs, etc.

    uUNN and pUNN Tokens

    As for the uUNN token, it is used by clients of the platform and protection buyers enabling them to impact the platform’s protection policies. The pUNN token on the other hand is given to writers of the protection, representing a percent share of the protection pool that the writer is powering.

    uUNN and pUNN tokens are only available on Union’s secondary market, which guarantees the separation of governance tokens from protection tokens, preventing a conflict of interest within the platform.

    Additionally, through the three-token based system, Union finance enables users to benefit from a dynamic and unique pricing model for the protection premium that provides an efficient and real-time price discovery mechanism, as well as a capital model that adjusts leverage, which maximizes solvency of protection pools while providing returns through surplus capital. Furthermore, a multi-layer governance, claim, and challenge mechanism ensures all operations are handled fairly and transparently.

    Key Components of Union Finance

    Buyer Protection

    A protection contract is automatically generated as a buyer purchases a protection product(s) on the platform. Upon purchase, each contract specifies the:

    • type of protection – this identifies which protection pool writes the protection and in return, earns the premium;
    • the cover amount;
    • the term of the insurance (start date/end date); and
    • the premium level.

    The purchase of the protection contract is confirmed when buyers receive uUNN tokens which demonstrate their right to the token protection policy. Then, the protection protocol will begin later after the premium is deposited or the start date of the protection contract. Buyers who stake UNN tokens through reliable decentralized exchanges (DEX) like Uniswap will receive a discount in the protection premium.

    Capital Model

    The capital model is a fundamental component that optimizes the leverage of protection writers, locking capital to meet solvency based on stringent standards used in insurance and finance while providing economic incentives that attract protection writers and help fund ecosystem development. Additionally, protection writers can use their pUNN tokens and stake for more UNN, enabling them to share in a small portion of UNN that accrues every block.

    UNN Staking

    UNN holders can stake their holdings to earn additional UNN through liquidity mining, which is split into two distinct categories; liquidity providers and locked tokens for governance purposes. Union will soon allow UNN holders to provide liquidity on different DeFI ecosystems such as Uniswap. As for the second category, UNN users will have control over decisions regarding the future of the UNN token through the decentralized governance process. 

    Conclusion

    Union Finance’s arrival to the DeFi sector came at a time when the potential risks and problems DeFi users have been facing on a daily basis have become too overwhelming. Thankfully, the platform simultaneously manages to resolve those risks through its distinct ecosystem and protection products.

    Union Finance protocol has the potential to elevate the DeFi sector by further impacting and empowering investors within the blockchain, as it decreases the barriers to entry for retail users and lays the foundation for institutional investors, thereby creating a trustworthy DeFi ecosystem.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Popular Cryptocurrency Terms Every Crypto Enthusiast Should Know

    Popular Cryptocurrency Terms Every Crypto Enthusiast Should Know

    Cryptocurrencies have exceedingly grown in popularity among investors, customers, developers, and regulators. However, a significant barrier to novice participants are the various terms floating around the industry. Many terms come from computer programming while other more recent terms originate from slang words or phrases. This post will go through some of the most common cryptocurrency terms, offering a solid basis for interested individuals.

    #A

    ATH

    “ATH” is an abbreviation for “All-Time High.” It is the highest price point that a cryptocurrency has been in its trading history.

    ATL

    “ATL” is an abbreviation for “All-Time Low.” It is the lowest price point that a cryptocurrency has been in its trading history.

    Address

    An address is a destination where a user sends and receives digital currency. Addresses are usually composed of a long series of letters and numbers. Without an address, the blockchain can’t confirm nor verify the existence of a coin, so, without a wallet address, you can’t own a cryptocurrency.

    Altcoins

    Altcoins, or Alternative Coins, refer to cryptocurrencies other than Bitcoin.

    Airdrop

    An airdrop is a distribution of a cryptocurrency token, usually for free, to numerous wallet addresses. Airdrops are primarily implemented as a marketing campaign as a way of gaining attention and new followers.

    Arbitrage

    Arbitrage is the practice of simultaneously buying and selling the same asset in different markets to take advantage of price differences between the markets.

    Ashdraked

    Ashdraked is a term born from Crypto trading and conveys a situation of complete loss of a trader’s total invested capital.

    Atomic Swap

    An atomic swap is a smart contract technology that enables the exchange of one cryptocurrency for another without using centralized intermediaries, such as exchanges.

    AMM

    An automated market maker (AMM) is a type of decentralized exchange protocol that relies on a mathematical formula to price assets. Instead of using an order book like a traditional exchange, assets are priced according to a pricing algorithm.

    #B

    Blockchain

    The technology that underpins cryptocurrency is known as a blockchain. It is a distributed and immutable digital ledger composed of all the transactions ever made in a cryptocurrency. The name comes from its structure, in which individual records, called blocks, are linked together in single list, called a chain.

    Bull

    If a trader believes that an asset will rise in value, he or she is a “bull.” When an investor has this optimistic expectation of an asset’s future, the frame of mind is described as “bullish.”

    Bear

    Someone who believes that prices in each market will decline in future is a “bear”. Bearish traders might take a short position on an asset that will pay off should the asset in question fall in value.

    Byzantine Generals’ Problem

    The Byzantine Generals Problem describes a situation where communication that requires consensus on a single strategy from all members within a group or party cannot be trusted or verified. It is used to describe the difficulty decentralized systems have in agreeing on a single truth. The Byzantine Generals Problem plagued money for millennia, until the invention of Bitcoin which uses a Proof-of-Work consensus mechanism and a blockchain to solve the Problem.

    Block

    A file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.

    Block Explorer

    A block explorer is a blockchain search engine that enables a user to view details of blocks on a given blockchain.

    Block Height

    A value describing the number of blocks preceding a given block in the blockchain.

    Block Reward

    The coins awarded to a miner or group of miners for solving the cryptographic problem required to create a new block on a given blockchain.

    Block Size

    Block size refers to the amount of data about transactions a single block in the chain can carry.

    Block Time

    Block time refers to the approximate time it takes for a blockchain-based system to produce a new block.

    Bid-Ask Spread

    Bid-ask spread is the difference between the highest price which a buyer is willing to pay for an asset as well as the lowest price that a seller is willing to accept.

    Bagholder

    An investor who continues to hold large amounts of a specific coin or token, regardless of its performance.

    Bart Simpson Pattern

    A chart pattern where price witnesses a sudden spike in one direction, followed by consolidation and a sudden spike to the opposite direction ending close to the base price. The pattern resembles the shape of the head of the iconic Simpsons character, Bart Simpson.

    BIP

    Bitcoin Improvement Proposal (BIP) is the standard format for documents proposing changes to the Bitcoin protocol.

    BEP-20

    BEP-20 is a Binance Smart Chain token standard, that extends ERC-20, the most common Ethereum token standard.

    BEP-2 (Binance Chain Tokenization Standard)

    BEP 2, or Binance Chain Evolution Proposal 2, is a technical standard used for the issuance and implementation of tokens on the Binance chain.

    BFA

    A Brute Force Attack (BFA), also known as an exhaustive search, is a cryptographic hack that relies on guessing possible combinations of a targeted password until the correct password is discovered.

    Burned

    Cryptocurrency tokens or coins are considered “burned” when they have been purposely and permanently removed from circulation.

    BFT

    Byzantine fault tolerance (BFT) is the property of a system that can resist the class of failures derived from the Byzantine Generals’ Problem. This means that a BFT system can continue operating even if some of the nodes fail or act maliciously.

    #C

    Cryptocurrency / Crypto

    A cryptocurrency (crypto) is a digital or virtual currency that uses cryptographic technologies to secure their operation. Most cryptocurrencies are decentralized networks based on blockchain technology and are not issued by the central bank of a country.

    Coin

    Coins are any cryptocurrency that has a standalone independent blockchain as opposed to tokens which live on another blockchain.

    Coinbase

    In mineable cryptocurrencies, a coinbase is the number of coins that are generated from scratch and awarded to miners for mining every new block.

    Cryptography

    In computer science, cryptography refers to is the practice and study of securing information and communication using mathematical concepts and algorithms, to transform messages in ways that are hard to decipher.

    Confirmation

    In cryptocurrency, a confirmation is a measure of how many blocks have passed since a transaction was added to a blockchain. Each new block is an additional confirmation for that transaction.

    Consensus Mechanism

    Consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain. A consensus mechanism is an underlying technology behind the main functionalities of all blockchain technology, making them an essential operating feature for all cryptocurrencies.

    Circulating Supply

    The best approximation of the number of coins that are circulating in the market and in the hands of the general public.

    Cold Storage

    A cryptocurrency wallet is in cold storage when it’s not connected to the internet. This includes offline storage of cryptocurrencies, typically involving hardware non-custodial wallets, offline computers, or paper wallets.

    Core Wallet

    A core wallet contains the entire blockchain as opposed to a piece of it and allows users to not only receive, store and send crypto but also program on or with it.

    Centralized Exchange (CEX)

    Centralized exchanges (CEXs) are a type of cryptocurrency exchange that is operated by a company which owns and controls it.

    Censorship Resistance

    Censorship resistance refers to the idea that no party can prevent anyone from participating in a given platform or network.

    CeDeFi

    CeDeFi, or centralized decentralized finance, combines traditional centralized financial services with decentralized applications, merging conventional regulatory policies with modern financial products and infrastructure.

    CBDC

    A Central Bank Digital Currency (CBDC) is the digital form of a country’s fiat currency that is also a claim on the central bank. Instead of printing money, the central bank issues electronic coins or account backed by the full faith and credit of the government.

    Chain Split

    Chain split, which is another term used to describe a cryptocurrency fork, is the separation of a single original coin into two or more independently managed projects.

    Change

    Change is a concept relevant to cryptocurrencies that use the UTXO model like Bitcoin. It is the number of coins sent back to a user’s address after they use their unspent outputs to initiate a transaction.

    Coin Mixer

    Coin mixers allow users to mix up transactions between different cryptocurrency addresses, so they become untraceable and cannot be followed back to the initial sender or receiver of the assets.

    Cross-Chain

    Cross-chain is a technology that enhances the interconnection between blockchain networks by allowing the exchange of information and value.

    Cryptojacking

    Cryptojacking is malicious cryptomining that involves infecting third party computers with malwares to use them to mine cryptocurrencies usually without user’s knowledge. Cryptojacking malware can lead to slowdowns and crashes due to straining of computational resources.

    Cypherpunk

    A cypherpunk is any individual advocating widespread use of strong cryptography and privacy-enhancing technologies as a route to social and political change.

    #D

    DLT

    Distributed Ledger Technology (DLT) is another term for blockchain technology. It is a database that is consensually shared and synchronized across multiple sites, institutions, or geographies, accessible by multiple people.

    DApps

    Decentralized applications (dApps) are digital applications or programs that exist and run on a blockchain instead of a single server and are outside the purview and control of any controlling authority.

    DAO

    A Decentralized Autonomous Organization (DAO) is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central authority.

    DCEP

    “Digital Currency Electronic Payment” (DCEP) is the national digital currency of China built using Blockchain and Cryptographic technology. DCEP is pegged 1:1 with the Chinese national currency.

    Derivatives trading

    A derivative is a contract or product that derives its value from an underlying asset. Depending upon the conditions of a contract, derivatives can be categorized as Futures, Forwards, Options and Swaps. By opening a demat account and a trading, you can get started with trading derivatives.

    DEX

    Decentralized Exchange or DEX is a peer-to-peer exchange allowing users to trade cryptocurrency without the need for an intermediary.

    Difficulty

    Difficulty is a measure of how difficult it is to mine a block in a blockchain for a particular cryptocurrency. It is a parameter that cryptocurrencies use to keep the average time between blocks steady as the network’s hash power changes.

    Dominance

    Bitcoin Dominance is a measure of Bitcoin’s value in the context of the larger cryptocurrency market. It can help you understand if altcoins are in a downtrend or uptrend against BTC.

    Double Spending

    Double Spending is the potential for a cryptocurrency to be spent twice. It occurs when a blockchain network is disrupted and cryptocurrency is essentially stolen.

    Dusting Attack

    A dusting attack is an attack in which a trace amount of crypto, called dust, is sent to several wallet addresses. This attack is deployed in order to track these addresses with the hope of “un-masking” or de-anonymizing them.

    Dump

    A sudden drop in the price of an asset.

    DYOR

    DYOR is an acronym for Do Your Own Research, encouraging investors to complete due diligence into a project before investing.

    DeFi

    DeFi or Decentralized Finance is a blanket term for decentralized alternatives to traditional (centralized) finance. It is a blockchain-based form of finance that does not rely on central financial intermediaries, making them open for anyone to use, rather than going through middlemen like banks or brokerages.

    DeFi Degens

    Degens is shorthand for Degenerate. Degen trading or Degen mode is when a trader invests without proper due diligence and research into a project and speculate on the price swings.

    Dead Cat Bounce

    A dead cat bounce is a trading jargon meaning a temporary, short-lived recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend.

    DPoS

    Delegated Proof of Stake (DPoS) is a popular evolution of the PoS concept, whereby users of the network vote and elect delegates to validate the next block.

    Dip

    A dip is when markets experience a short or protracted downturn in prices.

    DDoS attack

    DDoS stands for ‘distributed denial of service’. Such attacks attempt to render a site to a halt by overloading it with traffic.

    #E

    EEA

    Enterprise Ethereum Alliance (EEA) is a group of organizations and companies working together to further develop the Ethereum network.

    EIP

    Ethereum Improvement Proposals (EIPs) describe standards for the Ethereum platform, including core protocol specifications, client APIs, and contract standards.

    Ethereum

    Ethereum is a decentralized, open source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. After Bitcoin, it is the second-largest cryptocurrency by market capitalization and is the most actively used blockchain.

    ERC-20

    ERC20 is a token standard used for creating and issuing smart contracts on the Ethereum blockchain. ERC stands for “Ethereum Request for Comment,” and it enables smart contracts to operate as tradeable tokens.

    ERC-721

    ERC 721 is a token standard that describes how to build non-fungible (unique tokens) on the Ethereum blockchain.

    ERC-1155

    ERC-1155 is a digital token standard created by Enjin that can be used to create both fungible (currencies) and non-fungible (digital cards, pets and in-game skins) assets on the Ethereum Network.

    EVM

    Ethereum Virtual Machine (EVM) is a Turing-complete virtual machine that enables execution of code as intended on the Ethereum network. It is the runtime environment for every smart contract and every Ethereum node runs on the EVM to maintain consensus across the blockchain.

    ELI5

    ELI5 is short for “Explain Like I’m Five” is a plea for simplicity when crypto concepts are being explained.

    Exchange

    Cryptocurrency exchanges are a marketplace where users can trade cryptocurrencies for fiat money or other cryptocurrencies.

    Exchange Traded Fund (ETF)

    A security that tracks a basket of assets such as stocks, bonds, and cryptocurrencies but can be traded like a single stock.

    #F

    51% attack

    A theoretical attack where if an entity gains 51% of the hashing power, they can perform double-spends and other malicious activities on a cryptocurrency.

    Fiat

    Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. It can take the form of physical cash, or it can be represented electronically, such as with bank credit.

    FOMO

    An acronym that stands for “Fear of Missing Out” and in the context of investing, refers to the feeling of apprehension for missing out on a potentially profitable investment opportunity and regretting it later.

    FUD

    An acronym that stands for “Fear, Uncertainty and Doubt.” It is a strategy to influence perception of certain cryptocurrencies or the market as a whole in general by spreading negative, misleading or false information.

    Flash Crash

    A flash crash is a market condition where an asset’s price falls very rapidly within a very brief time interval.

    Flash Loans

    Flash loans are a new type of uncollateralized loans enforced by smart contracts. They enable you to borrow instantly without collateral, provided that liquidity is returned to the pool within one transaction.

    Flippening

    A hypothetical situation whereby the total market cap of Ethereum surpasses the total market cap of Bitcoin.

    Full Node

    Nodes that download and maintain a blockchain’s entire history in order to observe and enforce its rules.

    Funding rates

    All cryptocurrency derivatives exchanges use funding rates for perpetual contracts. Funding rates are periodic payments to long or short traders based on the difference between the perpetual contract market and the spot price. Depending on open positions, traders will either pay or receive funding.

    Fungible

    In cryptocurrency, fungibility is when a coin or token have identical characteristics and can therefore be interchanged easily.

    Futures

    A futures contract is a standardized legal agreement to buy or sell a particular asset at a predetermined quantity, price and at a specified time in the future.

    #G

    Gas

    Gas refers to a unit of measuring the computational effort of conducting transactions or smart contracts on the Ethereum network. It is the price you are willing to pay to miners for a transaction.

    Genesis Block

    Genesis Block is the first block of data that is processed and validated to form a new blockchain, often referred to as block 0 or block 1.

    GitHub

    GitHub is one of the most popular code hosting platforms, allowing developers to collaborate on various projects.

    Governance

    In the world of cryptocurrencies, governance is defined as the people or organizations that have decision-making powers regarding the project.

    Governance Token

    Governance tokens are tokens that developers create to allow token holders to help shape the future of a protocol. Governance token holders can influence decisions concerning the project such as proposing or deciding on new feature proposals and even changing the governance system itself.

    Gwei

    Gwei is short for gigawei, or 1,000,000,000 wei. Wei, as the smallest (base) unit of ether, similar to a satoshi in bitcoin. Gwei is used in defining the cost of gas in transactions involving Ether.

    Goxxed

    Goxxed comes from the infamous MtGox hack and refers to a situation when someone leaves their cryptocurrency in an exchange which gets hacked resulting in the loss of funds for the investor.

    #H

    HODL

    “HODL,” which stands for “Hold On for Dear Life” is a term used by members in the crypto industry to express the will to wait and hold a cryptocurrency for a long period of time, regardless of any changes in the price or markets. The acronym originally came from a misspelling of the world “hold”.

    Halving

    An event in which the total rewards, in the form of newly generated crypto, awarded to miners to mine blocks is halved.

    Hard Cap

    A hard cap is the absolute maximum supply of a digital asset.

    Hard fork

    A hard fork is a radical update to the blockchain that creates a permanent change to a digital currency’s protocol. They result in a whole new blockchain, which does not accept any blocks mined using the old rules, leading to a scenario where both the old and the new blockchains exist simultaneously.

    Hardware Wallet

    A hardware wallet is a physical wallet for cryptocurrencies that usually resemble a USB stick. They are one of the safest ways to store your cryptocurrencies since they are not connected to the internet.

    Hot Storage

    Hot storage refers to any crypto wallet that is run through an internet connected system. Hot wallets can be run on the cloud, a mobile device, or a desktop allowing for quicker access to the cryptocurrency.

    Hierarchical Deterministic Wallet (HD Wallet)

    A Hierarchical Deterministic (HD) Wallet generates a new key pair from a master key pair for each crypto transaction to enhance privacy and security. Its hierarchical structure resembles that of a tree, with the master key “determining” the key pairs that follow it in the hierarchy.

    Hash Function

    A hash function is a mathematical function that converts an input of an arbitrary length into an encrypted output of a fixed length. This means regardless of the original amount of data or file size involved, its unique hash will always be the same size. Bitcoin uses the SHA256 hashing algorithm.

    Hash Rate

    Hash Rate refers to the total combined computational power that is being used to mine and process transactions on a Proof-of-Work blockchain.

    Honeyminer

    Honeyminer is a cryptocurrency mining app available for download on multiple devices. It allows users to participate in a dynamic mining pool by running the app when the computer’s GPU isn’t in use.

    #I

    ICO

    Comparable to the traditional Initial Public Offering (IPO), an Initial Coin Offering (ICO) is a type of crowdfunding using cryptocurrency tokens as a means of raising capital for early-stage companies.

    IDO

    An initial DEX offering or IDO refers to the launching of a cryptocurrency on a decentralized exchange (DEX) in order to raise funding from retail investors.

    IEO

    Initial exchange offering (IEO) is a variant of initial coin offerings, operated directly by cryptocurrency exchanges. It is a type of crowdfunding where crypto start-ups generate capital by listing through a centralized crypto exchange.

    IBO

    An Initial Bounty Offering or IBO is a novel way of launching a project with tokens distributed to individuals who contribute time and skills to a platform, rather than their money.

    Impermanent Loss

    Impermanent loss describes the temporary loss of funds experienced by liquidity providers because of volatility in a trading pair. It occurs when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them.

    Infinite Approval

    Infinite approval is a smart contract programming practice, giving a smart contract authorization to access unlimited number of tokens from the user’s wallet.

    INO

    An Initial NFT Offering (INO) refers to an initial offering of a limited set of NFTs for sale on a particular NFT marketplace. Projects do this as a form of crowdfunding.

    Instamine

    An instamine occurs when a large quantity of cryptocurrency tokens are brought into existence at once.

    #K

    KYC

    Short for Know Your Customer, KYC is a compliance term referred to checks that crypto exchanges and trading platforms must complete to verify the identity of their customers. They are imposed by regulators who require identity background checks to deter money laundering and terrorist funding.

    #L

    Long

    Going long or having a long position, means making a wager that an asset will rise in value. If a trader purchases a digital currency like bitcoin, they are making a bet that the cryptocurrency will appreciate.

    Limit Order

    A limit order is a type of exchange order that allows traders to purchase or sell a cryptocurrency at a specified price or better. It allows you to set your own price to buy or sell. If the market reaches your limit price, your order will be executed.

    Leverage

    Money that a trader can borrow from a brokerage, enabling them to gain a greater exposure to a position than what their capital allows.

    Liquidation

    The term liquidation simply means selling assets for fiat. Forced liquidation happens when the trader is unable to fulfill margin requirements for a leveraged position when the market goes against their trade.

    Liquidity

    liquidity refers to how easily a cryptocurrency can be bought and sold without greatly impacting the overall market price.

    Liquidity Pool

    Liquidity pools are pools of tokens locked in smart contracts that provide liquidity in decentralized exchanges to reduce the problems caused by the illiquidity typical of such systems.

    Liquidity Provider

    Liquidity providers are decentralized exchange users who fund a liquidity pool with tokens they own.

    LP Tokens

    Liquidity Provider tokens (LP tokens) are crypto tokens issued to liquidity providers on a decentralized exchange in return for providing liquidity. LP tokens represent a liquidity provider’s share of a pool.

    Layer 2

    Layer 2 refers to a secondary framework or protocol that is built on top of an existing blockchain system. The goal is to solve the transaction speed and scaling difficulties being faced by cryptocurrency networks in their base layer.

    Lightning Network

    A second-layer protocol that is designed to solve Bitcoin’s scalability problem by allowing transactions to be processed more quickly.

    Libra (Diem)

    Facebook unveiled the Libra project in 2019 with a vision of being a stablecoin backed by multiple fiat currencies. Due to international regulatory backlash, on April 2020 Libra rebranded to Diem with the team indicating it would launch an array of stablecoins, each backed by a single fiat currency.

    #M

    Moon

    A term often employed as a verb (mooning) to describe a cryptocurrency that is under a strong upward market trend. The phrase “to the moon,” refers to a belief that a cryptocurrency is going to rise significantly in price.

    Market Cap

    Market cap is short for market capitalization, which is the total market value of a cryptocurrency. It is calculated by multiplying the number coins outstanding by the price per coin.

    Max Supply

    The best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency.

    Mempool

    A mempool is the digital database maintained by miners, where all unconfirmed transactions generated on the blockchain network are parked before they are sequentially aggregated into blocks.

    Merkle Tree

    A Merkle tree, is a mathematical data structure composed of hashes of different blocks of data, and which serves as a summary of all the transactions in a block. It also allows for efficient and secure verification and helps to verify the consistency and content of the data in blockchain.

    Seed Phrase

    A mnemonic phrase (also known as mnemonic seed, or seed phrase) is a cryptographically derived security code composed of a list of random words in a specific order, typically ranging between 12 and 14, which is used to recover a cryptocurrency wallet.

    Multi-Sig Wallet

    Multi Signature (Multi-Sig) wallets, are cryptocurrency wallets that require two or more private keys to sign and send a transaction.

    Mineable

    Cryptocurrencies are said to be mineable when they have a system through which miners are rewarded with newly created coins for verifying unconfirmed transactions through contributing hash power.

    Mining

    Mining is the process of verifying new transactions on a blockchain by miners. This verification requires hardware and electricity, and miners are rewarded with newly minted crypto for performing this task.

    Miners

    Miners are individuals with computers and processors across the globe who verify transactions, bundle them in a block and add their block to the existing blockchain. They also maintain a copy of all the transaction ever made on a blockchain network.

    Mining Pool

    A setup where multiple miners combine their computing power to gain economies of scale and competitiveness in finding the next block on a blockchain, with rewards split among participants.

    Market Maker, Market Taker

    A Market maker places an order (to buy or sell at a quoted price), while a Market taker accepts that placed order (to execute the buy or sell at the quoted price).

    Market Order

    A market order is an instant buy or sell of a cryptocurrency for the best available price at that time, in contrast to limit orders where a cryptocurrency is bought or sold only at a specified price.

    Margin Trading

    A practice where a trader uses borrowed funds from a broker to trade a cryptocurrency, which forms the collateral for the loan from the broker. It can be relatively risky for inexperienced traders who may receive a margin call if the market moves in the opposite direction of their trades.

    Margin Call

    A margin call occurs when the value of an investor’s margin account falls below the broker’s required amount. When a margin call occurs, the investor must choose to either deposit more money in the account or sell some of the assets held in their account.

    Metaverse

    A virtual world which is created mostly for people to connect socially, play games, and interact using their digital avatars. They can also further enhance their experience in the metaverse with the use of virtual or augmented reality headsets. The recent popularity of metaverses have also resulted in many companies taking advantage of this trend by hosting concerts, NFT launches, and digital fashion experiences.

    #N

    Noob

    Newcomers are frequently described as “noobs” by industry insiders.

    Node

    A node is the most basic unit of a blockchain infrastructure. It is a computer connected to other computers which follows protocol rules, shares information and stores data. A full node is a computer which hosts and synchronizes a copy of the entire blockchain for a cryptocurrency.

    NFTs

    Non-Fungible Tokens (NFTs) are unique cryptographic tokens that we can use to represent ownership of unique items. It is non-replicable, can’t be substituted, and can only have one official owner at a time.

    NGMI

    An abbreviation of “Not Gonna Make It”, it is the opposite of WAGMI (We Are Gonna Make It) and is often used when commenting on bad decisions by cryptocurrency traders or blockchain projects.

    Nonce

    Number only used once (Nonce) which, in the context of cryptocurrency mining, is a number which, when added to a hashed block, meets the difficulty level restrictions. When competing to mine a new block, the first miner to find the nonce is granted the right to add the next block into the blockchain.

    #O

    On-Chain

    Transactions that are recorded on the blockchain itself and can be viewed publicly.

    Open Source

    Open source is a philosophy, with participants believing in the free and open sharing of information in pursuit of the greater common good. In software development, the source code of an open source software is made available to developers and users to modify as they see fit.

    Orphaned Block / Stale Block

    An orphan block is a valid block that has been solved within the blockchain network but was not accepted to the main chain due to a lag within the network itself.

    Oracles

    Blockchain oracles are third-party services that provide smart contracts with external information. They serve as bridges between blockchains and the outside world.

    Order Book

    Order book is the list of all open orders that are currently available on an exchange for a specific trading pair, organized by price level.

    OTC

    Over the Counter (OTC) is defined as a transaction made outside of an exchange, often peer-to-peer through private trades.

    #P

    PAX Gold (PAXG)

    PAX Gold is the first gold-backed and fully regulated digital asset. It represents physical gold bars, with its value tied directly to the real-time market value of the physical gold it represents.

    Private Key

    A private key, made up of a series of alphanumeric characters, is the password that an investor needs to access their digital currency. While anyone can send transactions to the public key, you need the private key to “unlock” them and prove that you are the owner of the cryptocurrency received in the transaction.

    Public Key

    A public key, made up of a series of alphanumeric characters, is the address that you share with people so you can receive cryptocurrency.

    Public Address

    A public address is the cryptographic hash of a public key, allowing the user to use it as an address to request for payment.

    PoW

    Proof-of-Work (PoW) is a blockchain consensus mechanism involving solving of computationally intensive puzzles by miners to validate transactions and create new blocks in return for rewards in the form of newly minted coins.

    PoS

    Proof-of-Stake (PoS) is a blockchain consensus mechanism which allows a miner to validate transactions without spending much electricity, based on the number of coins they have staked in the network. The idea is that a miner will risk losing their stake if they act in a malicious manner.

    PoA

    Proof-of-Authority (PoA) is a blockchain consensus mechanism that uses identity as a stake. A few specific nodes are granted the authority to approve a miner’s ability to create a block. This is a faster alternative to the proof-of-work model, but more centralized.

    DPoS

    Delegated Proof of Stake (DPoS) is a consensus algorithm which is an advancement of the fundamental concepts of PoS. Stakeholders vote for a few delegates that secure the network on their behalf who are then responsible for achieving consensus. The voting power is proportional to the number of coins each user holds.

    Privacy coin

    A cryptocurrency that is completely anonymous and private as individual transactions cannot be tracked on the blockchain. Some of the most well-known privacy coins include Monero, Dash, and Zcash.

    P2P

    Peer-to-Peer (P2P) is the decentralized interactions between parties involving sharing transactions, files or other resources with no middleman in between.

    Paper Wallet

    A paper wallet is a form of cold storage where the private key or seed phrase is written or printed on a piece of paper which the user can then store.

    Pump and Dump

    A “pump and dump” is a type of securities fraud where a market participant, or several participants working together to falsely inflate the price of an asset in order to sell already established position when prices are artificially inflated.

    #R

    REKT

    REKT is a shorthand for the word “wrecked” describing a significant loss in a trade.

    ROI

    Return on investment (ROI) is a performance measure used to evaluate the profitability of an investment. It is calculated by dividing the profit (return) made on an investment by the initial cost of the investment.

    Replay Attack

    A replay attack, sometimes also called a playback attack, is a cyber-attack in which the malicious entity intercepts and then repeats a valid data transmission going through a network.

    Rug Pull

    A rug pull is a type of exit scam whereby malicious developers abandon a project and escape with investor funds by removing liquidity from a coin pair in a Decentralized Exchange thereby crashing its price.

    #S

    Satoshi Nakamoto

    Satoshi Nakamoto is the individual, or group of individuals, credited with founding the world’s first cryptocurrency, Bitcoin. The identity of Satoshi Nakamoto has not yet been confirmed.

    Satoshi

    A Satoshi is the smallest denomination of Bitcoin and is equivalent to 100th billionth of one Bitcoin (0.00000001 BTC). It was named after Bitcoin’s creator, Satoshi Nakamoto.

    Stablecoin

    Stablecoin as the name suggests is a cryptocurrency that is tied to the value of something with extremely low volatility, such as the US dollar, to make it more stable and less volatile in price swings.

    SHA-256

    Secure Hashing Algorithm (SHA) -256 is the hash function and mining algorithm of the Bitcoin protocol. It moderates the creation and management of addresses and is also used for transaction verification.

    Smart Contract

    Smart contracts are small pieces of code that runs on a Turing complete blockchain like Ethereum. They are typically used to automate the execution of an agreement so that all participants can be certain of the outcome, without the involvement of any intermediary.

    Smart Contract Audit

    A smart contract audit is an extensive methodical examination and analysis of a smart contract’s code by a leading security auditing company. This process is conducted to discover errors, issues and security vulnerabilities in the code in order to suggest improvements and ways to fix them.

    Soft Fork

    A soft fork is a backward-compatible protocol upgrade, meaning the upgraded nodes can communicate with the non-upgraded ones. The addition of a new rule that doesn’t clash with the older rules.

    SegWit

    Segregated Witness (SegWit) is a Bitcoin Improvement Proposal (BIP) aimed to fix transaction malleability on Bitcoin. It refers to a soft fork that separated digital signature data from transaction data, allowing more transactions to fit on one block.

    Staking

    Staking is an activity where a user locks or holds his funds in a cryptocurrency wallet to participate in maintaining the operations of a proof-of-stake (PoS)-based blockchain system.

    Sharding

    Sharding is a scaling approach by splitting a blockchain network into separate shards (smaller pieces), each with its own data, separate from other shards, so as to support more users and increase transaction throughput than the base layer.

    Solidity

    Solidity is the programming language developed and used by Ethereum developers for writing smart contracts.

    Side Chain

    A blockchain ledger that runs in parallel to a primary blockchain, where there is a two-way link between the primary chain and sidechain.

    Security Token

    A security token is essentially a digital form of traditional securities and will therefore be subjected to securities registration requirement.

    STO

    A security token offering (STO) is a public offering where tokenized digital securities are sold to public.

    Slippage

    Slippage happens when traders must settle for a different price than what they initially requested due to a movement in price between the time the order enters the market and the execution of a trade.

    Short/Shorting

    Shorting an asset, also known as taking a short position, means making a bet that the asset will fall in value. It is the act of selling the cryptocurrency in the hope that it falls in value and you can buy it back at a lower price thereby profiting from the difference in market price.

    Shilling

    The act of enthusiastically promoting a cryptocurrency or blockchain project.

    Shitcoin

    A coin with no obvious potential value or usage.

    #T

    TA

    Technical Analysis (TA) attempts to understand the market sentiment behind price trends by looking for patterns and trends rather than analyzing an asset’s fundamental attributes. It is used to scrutinize the ways supply and demand for an asset affect changes in price, volume and volatility.

    Turing-Complete

    Turing Complete refers to a machine that, given enough time and memory along with the necessary instructions, can solve any computational problem, no matter how complex.

    Token

    Tokens are cryptocurrencies that do not have their own blockchain but live on another blockchain like Ethereum, as opposed to Coins which are any cryptocurrency that has a standalone independent blockchain.

    TPS

    Transactions per second (TPS) refers to the number of transactions that a network is capable of processing each second.

    TVL

    Total Value Locked (TVL) represents the number of assets that are currently being staked in a specific protocol.

    2FA

    Two-factor authentication (2FA), sometimes referred to as two-step verification or dual-factor authentication, is a security process in which users provide two different authentication factors to verify themselves to better protect both the user’s credentials and the resources the user can access.

    Testnet

    A testnet is an alternative blockchain used by developers for testing and experimentation without risk to real funds or the main chain.

    Timestamp

    A form of identification for when a certain transaction occurred, usually with date and time of day and accurate to fractions of a second.

    Taproot

    Taproot is an instantiation of a soft fork for Bitcoin, intended to both improve privacy and improve other aspects tied to more complex transactions.

    TLT

    Think Long Term (TLT) is a mindset where you have a longer-term investment horizon.

    #U

    UTXO

    An unspent transaction output (UTXO) refers to a transaction output that can be used as input in a new transaction. These are the transactions that are left unspent after completing a transaction, similar to the change someone receives after conducting a cash transaction at a store.

    Utility Token

    A cryptocurrency that can be used for purposes aside from transactions. When a project creates a utility token, it is essentially creating a form of a digital coupon that can be redeemed in the future for discounted fees or special access to a product or service.

    #V

    Vanity Address

    A cryptocurrency public address with custom letters and numbers, usually picked by its owner.

    Virgin Bitcoin

    A bitcoin that has never been spent.

    Validator

    A blockchain validator is someone who is responsible for verifying transactions on a blockchain.

    #W

    Whale

    A term used to describe investors who have uncommonly large amounts of crypto, especially those with enough funds to manipulate the market.

    WAGMI

    Short for “We All Gonna Make It”, this term is used amongst cryptocurrency traders to reassure each other when the market or a specific cryptocurrency is not performing well.

    Wallet

    A crypto wallet is the place where cryptocurrencies are stored and from where a user can send and receive digital assets. Wallets come in a variety of forms, including hardware and software.

    Whitepaper

    A white paper is a document released by a project that outlines what a cryptocurrency is created to do by providing technical information about its concept, and a roadmap for how it plans to grow and succeed.

    Whitelist

    The term whitelist refers to a list of allowed and identified individuals, institutions, computer programs, or even cryptocurrency addresses in an initial offering of tokens by a project.

    Weak Hands

    An investor prone to panic selling at the first sign of a price decline.

    When Lambo

    When Lambo is a slang referring to cryptocurrency holders hoping to become rich enough to afford the purchase of a Lamborghini, or any such expensive car, with the profits.

    When Moon

    A phrase used to ask when the price of cryptocurrencies will rise exponentially.

    Wyckoff Pattern

    The Wyckoff Pattern, developed by Richard Wyckoff, an early 20th-century, is a chart pattern which centered around the realization that price trends were driven primarily by institutional and other large operators who manipulate markets in their favor.

    #Y

    Yield Farming

    Yield farming involves earning interest by investing crypto in decentralized finance markets.

    #Z

    Zero-Knowledge Proof

    Zero-knowledge Proof is an encryption scheme in which one party (the Prover) can prove that a specific statement is true to the other party (the Verifier) without disclosing any additional information.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • eToro Exchange Review (2023): Best Trading Platform for Learning

    eToro Exchange Review (2023): Best Trading Platform for Learning

    eToro is a global multi-asset platform that enables users to trade CFDs of stocks, commodities, indices, and more than 15 major cryptocurrencies, all in a fully regulated and secure environment. This review will discuss eToro online trading platform that enables users to trade a variety of assets, including stocks, commodities, and currencies, with the help of its innovative and user-friendly interface.

    Sign up here to get started

    What is eToro?

    eToro is a global multi-asset platform that allows users to trade CFDs of stocks, commodities, indices, and more than 15 major cryptocurrencies. With over 10 million registered users worldwide, eToro is a fully regulated exchange and broker. Unlike other cryptocurrency trading services, eToro does not allow users to withdraw their crypto assets unless they use the dedicated custodial eToro Wallet, available on iOS and Android. With eToro, users can easily trade oil, stocks, gold, and cryptocurrencies with confidence.

    eToro is an online broker and social trading platform that has been advocating for Bitcoin since 2007 and offering Bitcoin trading services since 2013. It is the perfect platform for new traders and investors who want to learn and experience the best of both crypto and traditional finance worlds. eToro is a secure and reliable platform that provides users with a wide range of tools and features to help them make informed decisions and maximize their profits. With its user-friendly interface, comprehensive educational resources, and advanced trading tools, eToro is the ideal platform for both novice and experienced traders.

    Key Features of eToro

    The key features of eToro include:

    eToro Social Trading: The most effective social platform for traders is eToro since it provides a distinctive social trading experience. To stay up with your favored assets’ news, you can follow, copy, engage with, and follow your favorite traders. You can even make your own news stream.

    Most Effective Trading Platform for Learning: Several instructional resources, including a training virtual portfolio.

    Outstanding Customer Service: You can get in touch with the eToro team by phone, live chat, or support ticket if there is a problem. Also, the site is available in over 20 other languages. 24/7 customer service is offered from Monday through Friday.

    A Wide Variety of Assets: Along with 16 other cryptocurrencies, there are traditional markets like equities, bonds, currency, ETFs, commodities, and others that you may learn about and trade in.

    Mobile Trading Apps: You may quickly access eToro while on the go and execute trades using an Android or iOS smartphone.

    Key Advantages of eToro

    eToro Usability

    eToro is a great platform for starting and novice traders, offering a Virtual Portfolio and ‘demo mode’ to buy and trade cryptocurrencies without staking real money. It also features CopyTrader, which allows users to copy the best-performing traders in various asset markets, such as commodities, stocks, ETFs, and crypto. With CopyTrader, users can choose how much to invest and mirror every action the trader takes, while making adjustments as needed. eToro is a great platform for those looking to get into trading, offering a safe and secure environment to learn and grow.

    eToro’s trading platform is designed with the user in mind, offering a user-friendly and easy to navigate layout. The left-hand side of the screen features a control panel, while the right-hand side displays charts, data, and profiles to help you make informed investment decisions. eToro’s mobile apps, available for both Android and iOS devices, allow you to do pretty much everything you can do on the desktop version, including receiving notifications on the go. With its intuitive design and comprehensive features, eToro’s trading platform is a great choice for both experienced and novice traders.

    eToro Social Trading

    eToro is the social media platform for traders that connects you to experienced traders from around the world. With eToro’s copy trading feature, you can copy the actions of your chosen traders in real time and benefit from their expertise. Monitor their trades and opt-in to copy everything they do. eToro provides indicative prices, and the current market price is shown on the eToro trading platform. With eToro, you can benefit from the knowledge and experience of seasoned traders and make the most of your investments.

    Trusted and Established Reputation Within the Industry

    eToro is a leading online brokerage site that offers its users the ability to trade cryptocurrencies. US customers can access real crypto assets, while CFD trading is also available. This is a very interesting business move due to the volatile nature of cryptocurrencies, which have a reputation for being unpredictable. eToro has a solid business plan to ensure they can profit from this service, while clients can benefit from CFD-based crypto trading. eToro is a secure and reliable platform that provides users with a wide range of features, including copy trading, social trading, and a variety of educational resources. With its user-friendly interface and low fees, eToro is a great choice for anyone looking to get involved in the cryptocurrency market.

    eToro is a broker that offers users the widest variety of cryptocurrency trading options available, both long-term and short-term. This is thanks to their introduction of the “copy trading” feature, which allows investors to copy the decisions of experienced traders. This is a great option for those who don’t have the time or knowledge to research the crypto market, as it allows them to benefit from the expertise of experienced investors. Additionally, investors can pick the expert they want to follow based on their performance and receive a bonus for correct decisions.

    Key Disadvantages of eToro

    Somewhat High Fees

    eToro now charges a 1% fee on all cryptocurrency trades – buying or selling. This fee is included in the price when a user opens or closes a position and is charged for the ’round trip’ – meaning a 1% fee on the purchase and an advance of 1% for the eventual sale of the coin. The only outlier is Terra Classic (LUNC), which has an operational fee of 0.6% added to the standard 1%. eToro no longer charges overnight – or rollover – fees on cryptocurrency, however, 79% of retail investor accounts lose money when trading CFDs with this provider, so it is important to consider whether you can afford to take the high risk of losing your money.

    Can Only Deposit Via Fiat Currency

    eToro users can deposit fiat currency into their account using credit/debit cards, wire transfer, and popular e-wallets like PayPal, Skrill & Neteller, Klarna, and iDEAL. All fiat funds held by eToro are in US dollars, so a conversion fee may be incurred. The minimum first-time deposit ranges from USD 50 to USD 10,000. Withdrawals are also available via credit/debit card, bank transfer, and PayPal, with a flat fee of USD 5 for every withdrawal. Additionally, users can transfer cryptocurrency directly to the eToro wallet and hold and withdraw supported cryptocurrencies.

    Why eToro?

    eToro is a leading cryptocurrency brokerage firm that offers a wide variety of cryptocurrencies for trading. They guarantee security and a fluid user interface experience, with no hidden fees and good transaction rates. eToro has the most cryptocurrencies available for trading out of any other brokerage firm, making it a great choice for those looking to invest in the cryptocurrency market. They also offer a variety of other features, such as copy trading, which allows users to copy the trades of experienced traders, and a social trading platform, which allows users to connect with other traders and discuss strategies. With its wide range of features and benefits, eToro is a great choice for those looking to invest in the cryptocurrency market.

    Conclusion

    eToro is a revolutionary startup that has changed the way people trade stocks and cryptocurrencies. With its innovative “copy trading” system, investors can potentially earn more revenue without having to do anything but register and set up their portfolio. Experienced investors can take advantage of this system to boost their earnings, while newcomers should start slow and not invest more than they’re willing to lose. Projects like Follow Coin have tried to follow the same path, but have been much less successful due to a lack of experience and professionals in the field.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • DODOEx ($DODO): A Revolutionary On-Chain Liquidity Provider

    DODOEx ($DODO): A Revolutionary On-Chain Liquidity Provider

    DODO Exchange ($DODO) is a platform that supplies on-chain liquidity in order to support the Proactive Market Maker algorithm (PMM) to provide everyone with pure and contract-fillable liquidity on the blockchain.

    Overview

    The dawn of decentralized exchanges (DEXs) and decentralized finance (DeFi) brought with it automated market-making (AMM). Unlike in centralized exchanges, AMM doesn’t rely on buyers and sellers for a trade to take place. Instead, smart contracts sit at the center of the trade with liquidity pools providing the reserves.

    Unfortunately, in the DeFi scene, the AMM approach has faced challenges as to how to address issues such as slippage and impermanent loss effectively. As a result, platforms such as DODOEx are using a fined-tuned formula known as proactive market maker (PMM) which provides minimum slippage and improved fund utilization. Here, we take a close look at DODOEx, its contribution to the DeFi world, as well as what makes it unique.

    Background

    DODOEx, founded by three veterans in the blockchain industry, who has huge influencing power in China’s DeFi Community – Mingda Lei, Qi Wang and Diane Dai.

    Mingda Lei, he is the architect behind this new market-making algorithm for the protocol. He was a Physics PhD dropout from Peking University. He used to worked for a China-based DeFi project called DDEX as the key developer of the project. The second co-founder is Qi Wang. He is the founder of DOS Network, a China-based layer two oracle project. Before entering into the crypto industry, Wang used to worked as a software developer for firms like Pure Storage and Oracle. The third co-founder, Diane Dai, she started the first subscription-based WeChat channel that focuses on DeFi in China called DeFi Labs.

    Apart from the influencing team, DODOEx is also backed by many prominent investors such as Framework Ventures, DeFiance Capital, Pantera Capital, Binance Labs, Coinbase Ventures, Alameda Research, SevenX Ventures and more.

    What is DODOEx?

    Simply put, DODOEx is a decentralized liquidity provider using a new market making strategy. Notably, the new algorithm differs greatly from the AMM approach common with popular DEXs and/or DeFi platforms such as Uniswap and Curve.Finance.

    For example, instead of spreading funds uniformly over a price range, PMM allocates funds with close respect to market prices. One disadvantage of equally allocating funds is that only those funds with a close connection with the market price get utilized in trades. Therefore, in an AMM scenario, there’s a huge difference between the liquidity provided and the liquidity that is actually in use.

    DODO Exchange
    DODO Exchange (Image credit: DODO Exchange Website)

    How DODOEx Uses PMM to Beat AMM

    Compared to Uniswap’s AMM, DODOEx’s PPM has a better trading amount-vs-price curve. Why? Because, being a proactive formula, it reacts to the changes in the market price to effectively shift the price curve in a similar direction. Consequently, the section around the market price is considerably flat, ensuring sustained liquidity provision and utilization.

    DODOEx-Proactive Market Maker
    DODOEx – Proactive Market Maker (Image credit: “DODO: A Revolution in On-Chain Liquidity” Medium Article)

    Furthermore, apart from shifting the curve, DODOEx unlinks the base currency from the quote currency in a trading pair. Interestingly, this results in less risk and allows liquidity providers (LPs) to use the token at their disposal.

    For instance, if it’s an ETH-DAI trading pair, the LP has to deposit either ETH and DAI. Under these circumstances, DODOEx presents numerous advantages to traders and LPs

    Advantages of DODOEx to Traders

    • Although the protocol is decentralized, DODOEx traders have enough liquidity close to what is offered by centralized platforms.
    • There’s a possibility of having price differences between other exchanges and DODOEx which can be commercialized by arbitrageurs.
    • Liquidations, auctions, and other on-chain activities powered by smart contracts can utilize liquidity from DODOEx.

    Advantages of Using DODOEx as an LP

    • By unlinking the base and quote tokens, LPs can use any asset type at their disposal.
    • No minimum restrictions on deposits.
    • LPs share the network’s transaction fees.
    • LPs don’t incur price risks when depositing their own tokens.
    • They can use their coins to create trading pairs.

    DODOEx’s Native Token ($DODO)

    DODO is an ERC-20 token and forms DODOEx’s native currency. DODO is the platform’s governance token. DODOEx’s governance structure consists of three decentralized autonomous organizations (DAO); admin, risk control, and earn.

    The admin DAO is responsible for overseeing all the decisions made on the DODOEx ecosystem. Being the administrator, it has a considerable influence on the other DAOs.

    The risk control DAO, as the name suggests, deals with the system’s risk features. Earn, on the other hand, governs how incentives are shared on the platform.

    DODO token distribution
    DODO Token Distribution (Image credit: “Announcing the DODO Token and Initial DODO Offering” Medium Article)

    DODO’s total supply is 1,000,000,000 tokens which are allocated to the core team (15%), investors (16%), initial liquidity provision (1%), operations/marketing (8%), and lastly, the DODOEx community takes 60%.

    DODO’s Initial DODO Offering (IDO)

    The IDO was held on 29 September 2020 on DODO Exchange platform. DODO Exchange has listed the DODO-USDT trading pair. 1% of the total DODO supply is locked in the DODO liquidity pool and the initial offering price is $0.10 per token.

    Earning DODO: Staking and Mining

    The DODOEx system provides two ways to earn DODO tokens; staking and mining.

    Staking

    This involves locking your present DODO token holding and acquiring more tokens in the process. This can be done by:

    • Accessing the exchange through app.dodex.io.
    • Connecting your wallet through MetaMask.
    • Click “mining” on the upper far right corner.
    • Select DODO.
    • Click stake (note that there’s no way to edit the stake or unstake amount. Therefore, you can either stake or unstake your entire DODO balance).
    • Confirm your option on the exchange and on the wallet.

    Mining DODO 

    It involves providing liquidity in any supported trading pair using the pool tab. To access the pool option,

    • Visit app.dodoex.io.
    • Connect your wallet through MetaMask.
    • Select “Exchange” from the top right.
    • Click on “pool” and select your preferred pair. Note that you can deposit any coin on the trading pair. For example, if it’s the ETH-UDSC pair, you can deposit either ETH or USDC.
    • Click “Deposit,” define the token amount you wish to deposit, and select “Confirm.”
    • Access your wallet to confirm the transaction after which you click the “mining” button on the top right corner.
    • Approve the transaction and confirm it in the popup window that appears. In effect, another approval is required since you are now dealing with DLP tokens allocated from depositing your cryptocurrency on the above steps.
    • In the last step, confirm and stake.

    Core Components of the DODO Contract Framework

    A set of smart contracts powers the DODOEx protocol. However, for optimal interaction, these smart contracts are divided into three core components. They include:

    The Core – This holds all the ecosystem’s data and logic. It consists of the transparent proxy contract and the logic implementation contract.

    DODO contract framework
    DODO Contract Framework (Image credit: DODOEx ‘Smart Contract Framework’ Github)

    The Entrance – The entrance contract helps in streamlining activities on the transparent proxy contract, which is associated with oracles and fine-tuning parameters. Consequently, it helps mitigate the losses for users.

    The Helper – This section of the DODOEx ecosystem holds contracts that are meant to help remove the complexity of the platform away from its users.

    Conclusion

    The network’s next-generation liquidity provision algorithm ensures high fund utilization and ensures LPs don’t lose value between depositing and withdrawing, commonly known as impermanent loss.

    In addition, DODOEx is beneficial to both traders and liquidity providers. For example, it provides enough liquidity for traders and LPs share a section of the system’s transaction. Also, DODO mining and staking enable investors to increase their token holdings.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.