James

Paying off multiple debts have you feeling like you're swimming upstream? We’re here to change that and help you understand more about strategies like paying off high-interest debt first. 

The first lesson in changing the direction of the current is something many people don't realise: not all debts are created equal. High-interest debts, like credit card balances, can grow quickly and gradually drain your funds. 

In this article, we’ll explore why focusing on high-interest debts first can be a smart move and how it might save you money, helping you become debt-free faster. Whether you’re handling credit cards, personal loans, or other debts, understanding this approach can make a meaningful difference in your financial journey.

Remember, everyone’s finances are different—what works for others may not work for you. While this strategy helps many with debt, consider how it aligns with your own situation. If you’re unsure, don’t hesitate to reach out to a financial advisor who can offer you a more personalised plan.

Why pay off high-interest debt first?

Understanding high-interest debt and why it’s problematic

High-interest debt includes obligations like credit cards, personal loans, and payday loans. These types of debt tend to carry much higher interest rates than other forms of borrowing, which makes them more costly to manage over time. 

The reason why high-interest debt is such a challenge to many is largely because of the compounding nature of interest. With compounding, interest charges are continually added to the balance, so the debt grows faster than it might seem, even if you're making regular payments.

Imagine you’re dealing with a credit card balance. Every month you don’t pay it off entirely, interest is added not just on the original amount but also on previous interest charges. Similarly, if you have a bank account with fees or overdrafts, those can compound as well. This compounding effect can make debt snowball quickly, which is why high-interest debt can become overwhelming and expensive if not managed carefully.

Benefits of paying off high-interest debt early

1. You could save money on interest payments

One of the biggest advantages of focusing on paying off high-interest debt first is the potential to save money on interest costs. By paying down this debt early, you reduce the amount of time that interest has to build up, which can lead to significant savings. 

Imagine being able to put that saved money toward something meaningful instead, like a vacation or a home improvement project, or just giving your savings a boost.

2. You could free up cash flow

As high-interest debt diminishes, so do your monthly payments. This means you’ll have more flexibility in your budget to direct funds toward other goals, like building an emergency fund, investing, or saving for a major purchase. 

Freeing up cash flow provides you with more control and can help bring your financial goals closer.

3. You could reduce stress and improve your financial well-being

High-interest debt can add a lot of stress, weighing on you each month as the balance seems to accumulate exponentially. By paying it down, you’re not just improving your finances, you’re also giving yourself a much-deserved peace of mind. 

Being proactive about reducing debt can also positively impact your overall well-being, making it easier to focus on the future instead of worrying about the present.

Exploring debt repayment strategies

Now, let's explore two popular methods for tackling multiple debts. While each has its own approach, understanding both can help you make informed decisions about which might align with your specific situation and preferences.

The debt avalanche method

This strategy involves focusing extra payments on the debt with the highest interest rate while maintaining minimum payments on other debts. Once the highest-interest debt is cleared, the focus shifts to the next highest, and so on.

The maths behind this method tends to result in less money paid in interest over time. However, if the highest-interest debts also have large balances, it might take longer to see visible progress, which some find challenging for maintaining momentum.

The debt snowball method

This approach focuses on paying off the smallest debt balance first, regardless of interest rates, while maintaining minimum payments on other debts. As each small debt is cleared, the freed-up money goes toward the next smallest balance.

Many people find this method motivating because it can provide quick wins. Seeing debts disappear entirely, even if they're small, creates a sense of progress that can help maintain enthusiasm for debt repayment. 

While this doesn’t focus on paying off high-interest debt, many people are drawn to (and motivated by) the psychological boost it provides.

Comparing different approaches

Consider this example:

Someone has three debts:

Credit card: £5,000 at 20% interest

Personal loan: £2,000 at 12% interest

Store card: £800 at 15% interest

The avalanche method would target the credit card first (highest interest), while the snowball method would start with the store card (smallest balance).

The avalanche method might save more money in interest payments, but the snowball method could provide faster visible results by eliminating the smaller debts more quickly.

Some find that combining elements of both methods works best for their situation - perhaps focusing on a small, high-interest debt first to experience both the mathematical and psychological benefits.

Remember, choosing a debt repayment strategy is a personal decision that depends on various factors, including financial circumstances and personal motivation style. It’s not a one-size-fits-all type of situation. 

Important factors when considering debt repayment

Remember how we said in the beginning “not all debts are created equal”? Well here’s what we mean: when mapping out your debt repayment plan, there are several key factors that can influence how you choose to prioritise what. Let's explore these elements to better understand how they might affect different financial situations.

Understanding different types of debt 

Debts generally fall into two categories: secured and unsecured: 

• Secured debts, like mortgages and car loans, are tied to specific assets and typically carry lower interest rates. 
• Unsecured debts, such as credit cards and personal loans, usually have higher interest rates because they're not backed by assets.

While a mortgage might have a 5% interest rate compared to a credit card's 20%, this doesn't automatically make it the priority. The secured nature of mortgages and car loans means different considerations come into play, like protecting essential assets that provide housing and transportation.

Looking at personal financial circumstances 

Several factors can influence debt repayment priorities:

• Monthly income stability
• Essential living expenses
• Emergency savings availability
• Other financial obligations

For instance, someone with variable income might prioritise differently than someone with a steady paycheck. Available cash flow after essential expenses also plays a significant role in determining realistic repayment amounts.

Credit score considerations 

Paying off debt can impact your credit score in a few ways: how much credit you use (credit utilisation) and how you manage accounts after repayment. Keeping up with payments, using credit wisely, and making smart account decisions are key to navigating this territory. Since everyone's situation is different, it’s a good idea to get advice from a professional for your best approach.

Making informed choices about debt repayment

High-interest debt can feel like an uphill challenge, but understanding how interest compounds and affects different types of debt can help make repayment feel more manageable. 

Additionally, recognising the weight of high-interest debt gives you a clearer sense of why certain debts may deserve more focus, allowing you to choose a strategy that aligns with both your financial situation and personal approach, whether that means a steady, structured method or motivating quick wins.

Remember, what matters most is taking those first steps and staying consistent with a plan. Everyone’s debt journey is unique, so the key is finding a sustainable plan that helps you move toward greater financial flexibility and peace of mind.

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The Bahamas, a tropical paradise of crystal-clear waters, pristine beaches, and vibrant culture, offers more than just a vacation destination - it can be your new crypto-friendly home. Whether you're drawn by the laid-back island lifestyle, tax benefits, or the opportunity to wake up to breathtaking ocean views every day, moving to the Bahamas could be your best move yet.

This comprehensive guide is designed to help you navigate the process of relocating to the Bahamas, covering everything from legal requirements to finding your perfect island home. Let's dive into your new Caribbean life.

Table of Contents

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Your ultimate guide to moving to the Bahamas 1

Table of Contents 1

Fun Facts about the Bahamas 2

Understanding the Bahamas 2

Location and Climate 2

Cultural Considerations 2

Language 2

Tax Benefits 3

Legal Requirements - Visas and Residency Permits 3

Work Visas and Permits 3

Investment-Based Residency 3

Student Visas 3

Family Reunification 3

Finding a Job 4

Finding a Place to Stay 4

Cost of Living 5

Setting up a Bank Account 5

Getting Around the Bahamas 6

Accessing the Healthcare System 6

Learn the Language 6

Conclusion 7

Fun Facts about the Bahamas

• Population: 415,223
• Total number of islands: 700, with about 30 inhabited
• Capital: Nassau, located on New Providence Island
• Currency: Bahamian Dollar (BSD), pegged 1:1 with the US Dollar *They also use the Sand Dollar, which is the digital version of the Bahamian dollar (B$). 
• Official language: English

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Understanding the Bahamas

Location and Climate

The Bahamas is an archipelagic state in the Caribbean, consisting of over 700 islands, cays, and islets spread across 100,000 square miles of the Atlantic Ocean. Located just 50 miles off the coast of Florida (a 3-4 hour ferry ride), it's a popular destination for both tourists and expats seeking a tropical lifestyle.

The climate is tropical, with hot and rainy summers (May to October) and mild winters (November to April). Hurricane season typically runs from June to November, so be prepared for potential storms during this period.

Cultural Considerations

Bahamian culture is a vibrant mix of African, British, and American influences, reflecting its history and diverse population. The people are known for their friendliness and laid-back "island time" attitude, which can be a significant adjustment for those used to a fast-paced lifestyle.

Religion plays a significant role in Bahamian society, with Christianity being the predominant faith. Respect for local customs and traditions is important, as is an appreciation for the relaxed pace of island life.

Language

English is the official language of the Bahamas, making communication easy for most expats. However, you may encounter Bahamian Creole, a dialect spoken by many locals, especially in more casual settings.

Tax Benefits

The Bahamas is often seen as a tax haven, as there’s no income tax, capital gains tax, inheritance tax, or corporate tax. Additionally, the value-added tax (VAT) on goods and services is relatively low, and essentials like milk and bread are exempt from VAT altogether.

Legal Requirements - Visas and Residency Permits

Before moving to the Bahamas, it's important to know the visa and residency requirements. If you plan to stay long-term, you'll need a long-stay visa, which is issued for specific reasons like work, investment, study, or family reunification.

Alternatively, you can enter the country on a visitor visa and apply for an annual residence permit once you're there.

Work Visas and Permits

Non-Bahamians seeking employment need a work visa and permit. The steps include:

• Your employer must advertise the job locally.
• If no local candidates are found, they submit an application to the Director of Labour.
• Once approved, you'll receive a Labour Certificate (LC), which allows you to apply for a work visa at the Department of Immigration.

Investment-Based Residency

Investors and property owners can qualify for residency by investing BS$500,000 (€454,000) or more in property. You’ll need to show a high net worth and enough income to support yourself without working. Property owners can also get a homeowner’s card, which speeds up immigration for you and your family.

Student Visas

To study in the Bahamas, you’ll need a student visa. This requires proof of admission to a Bahamian school, an acceptance letter, and financial support to cover your stay. A student visa lets you live and work while studying.

Family Reunification

If you're married to a Bahamian citizen, you can apply for a resident spouse permit by submitting a letter to the Director of Immigration with supporting documents. If you've been married for five years or more, you may also be eligible to apply for citizenship.

Always check the official Bahamas Immigration website for the latest info: immigration.gov.bs

Finding a Job

Finding employment in the Bahamas can be challenging for expats, as the government prioritises jobs for Bahamian citizens. However, opportunities do exist, particularly in the following sectors:

• Tourism and hospitality
• Financial services
• Real estate
• Education
• Marine and maritime industries

To search for jobs, you can use online platforms such as:

• Caribbean Jobs
• Bahamas Local

Networking is crucial in the Bahamas, so consider joining expat groups and professional associations to make connections.

Finding a Place to Stay

The Bahamas offers a range of housing options, from beachfront villas to condos in bustling Nassau. Popular areas for expats include:

• New Providence (Nassau, where 70% of the country’s population live)
• Paradise Island
• Grand Bahama Island
• The Abacos
• Eleuthera
• San Salvador Island
• The Exumas

When looking for a place to live, consider:

• Proximity to work or amenities
• Hurricane resilience of the property
• Access to utilities (some islands have limited infrastructure)

Websites to help with your property search:

• Bahamas Real Estate Association
• Dupuch Real Estate
• HG Christie

Living in Nassau offers a variety of housing options, whether you're in the city centre or a bit further out. A one-bedroom apartment in the heart of the city costs around €1,340 per month, while the same type of apartment outside the centre is slightly higher at €1,510. 

For larger spaces, a three-bedroom apartment in the city centre averages €3,420, with similar properties outside the centre going for around €3,510. There are plenty of options, providing flexibility depending on your budget and lifestyle preferences.

Cost of Living

While the Bahamas can be expensive - it’s considered one of the most expensive countries to live in in the Caribbean - costs vary significantly depending on the island and lifestyle. Here's a general idea of monthly costs (excluding rent):

• Single person: $1,717 (€1,545) 
• Family of four: $6,125.30 (€5,510) 

Some specific costs:

• Basic utilities (electricity, water, garbage) for 85m² apartment: $325 (€290)
• Internet (60 Mbps or more): $105 (€94)
• Mobile phone monthly plan with calls and 10gb+ data: $70 (€63)
• Gym membership: $113 (€101)

The cost of living in Nassau, excluding rent, is approximately 3.5% lower than that in New York City, while rent prices are 41.5% lower. Note that imported goods can be quite expensive due to high import duties. 

Setting up a Bank Account

To open a bank account in the Bahamas, you'll typically need:

• Valid passport
• Proof of residency (lease agreement or utility bill)
• Reference letter from your current bank
• Proof of income or funds

Major banks in the Bahamas include:

• Bank of The Bahamas
• Commonwealth Bank
• Scotiabank
• Fidelity Bank

Many expats maintain offshore accounts in addition to their local Bahamian accounts. But be aware of tax implications and reporting requirements for your home country.

Prior to setting up your bank account in the Bahamas (and after), the Tap app offers a seamless money solution. The app lets you handle both fiat and crypto in one place, offering an easy way to load funds onto your Tap card and pay for goods and services wherever you are. 

Whether you’re making everyday purchases or covering bills back home, Tap simplifies the process by allowing you to use your preferred currency effortlessly.

Getting Around the Bahamas

Transportation in the Bahamas varies depending on the island:

• In Nassau and Freeport, public buses (locally called "jitneys") are available and inexpensive. Note that they are less frequent on Sundays and public holidays.
• Taxis are widely available but can be costly for longer trips.
• Car rentals are an option on larger islands, note that they drive on the left side of the road.
• Inter-island travel is typically by small plane or ferry.

For inter-island transportation, check out:

• Bahamas Ferries
• Southern Air Charter

Accessing the Healthcare System

The Bahamas has public and private healthcare facilities, with one of the most successful healthcare systems in the Caribbean (for locals). While emergency care is available to everyone, expats are generally expected to have private health insurance.

• Private clinics and hospitals offer higher quality care but at a higher cost.
• For serious medical conditions, many expats choose to travel to Florida for treatment.

Consider international health insurance plans that cover medical evacuation for peace of mind.

Learn the Language

English is widely spoken throughout the Bahamas, so language barriers are minimal for most expats. However, learning some Bahamian slang can help you connect with locals:

• "Sip sip" - gossip
• "Sky juice" - a local cocktail made with gin, coconut water, condensed milk, and sometimes nutmeg
• "Conchy joe" - a white Bahamian

Conclusion

Moving to the Bahamas offers a unique opportunity to embrace island living while still enjoying modern amenities. From the turquoise waters to the friendly locals, life in the Bahamas can be a dream come true for many.

Remember to respect local customs, prepare for the tropical climate, and embrace the relaxed pace of life. Whether you're retirement planning, seeking a career change, or just want to wake up to paradise every day, the Bahamas welcomes you to write your own island story.

Pack your sunscreen, Tap card, your sense of adventure, and maybe a good book for those lazy beach days – your Bahamian journey awaits.

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Dubai is a city of dazzling skyscrapers, luxury shopping, and vibrant culture, blending modernity with tradition in a unique desert setting. Whether you're drawn by its booming job market, captivating architecture, or tax-friendly environment, moving to Dubai offers an exciting adventure. 

This ultimate guide is designed to provide you with everything you need to know to make your relocation smooth and successful. From navigating the real estate market to understanding local customs, we’ve got you covered every step of the way.

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Your Ultimate Guide to Moving to Dubai 1

Fun facts about Dubai 1

Understanding Dubai 2

Legal Requirements - visas, residency permits 2

- Green Visa 3

- Standard Work Visa 3

- Golden Visa 3

- Student Visa 4

Finding a job 4

Finding a place to stay 4

Cost of Living 5

Setting up a bank account 5

Getting around Dubai 6

Accessing the healthcare system 6

Learn the language 7

Conclusion 7

Fun facts about Dubai

• Dubai population: 3.638 million 
• Total foreigners: 2.72 million (75%)
• Currency: United Arab Emirates Dirham (AED), also called Dirhams (symbolised as Dhs)
• Capital: Dubai, the city, is the largest city within the Emirate of Dubai
• Official languages: Arabic, although English very common

Understanding Dubai

Location and Climate
Dubai sits on the southeastern coast of the Arabian Peninsula, right along the sparkling Arabian Gulf. The city's modern skyscrapers and luxurious lifestyle stand in sharp contrast to the traditional desert backdrop, offering a fascinating mix of old-world charm and contemporary flair.

Expect extreme temperatures, with scorching heat - temperatures can soar up to 54°C (129°F) during the summer (May - September) - and much cooler nights, winter nights typically drop to between 10°C and 16°C (50°F to 61°F).

Cultural Considerations
Dubai is a melting pot of cultures, with people from all over the world calling it home. This diversity makes it a vibrant city, but it also means understanding and respecting local customs is important. 

The laws and cultural norms in Dubai and the UAE are deeply rooted in Islamic tradition, with customs and etiquette that might differ from what you’re accustomed to. To stay respectful and avoid any issues, dress modestly in public, avoid being intoxicated or disruptive, and keep displays of affection like hugging or kissing to a minimum. 

It wouldn’t hurt to dive deeper into the traditional Arabian values to get a better understanding of the local way of life before you touch down.

Language
Arabic is the official language, but you'll find that English is widely spoken and understood, especially in business and social settings. This makes settling in easier for newcomers and helps you navigate daily life without too much hassle. See more on this later.

Legal Requirements - visas, residency permits

Before relocating to Dubai, ensure your paperwork is in order. Your passport should be valid for at least six months from your entry date and make sure to have any necessary documents, like marriage licenses or diplomas, certified before you go. 

If you’re from the US, UK, Canada, or most European countries, you can get a 30-day visa on arrival, and reapply for a work visa once you’ve found a job. Alternatively, you can sort out your residency permit beforehand by finding a job and getting the employer to apply on your behalf.

Getting a visa allows you to open a bank account, secure loans (personal or car), access visa-free travel to several countries, enroll your children in private or government schools, get a driver’s license, and access government health services and insurance.

For long-term stays, there are three main visa options: the Green Visa, Standard Visa and Golden Visa. There is also the option to study there, which you’ll need a student visa for. 

• Green Visa 

The UAE’s Green Visa is a five-year residence visa that allows holders to self-sponsor, removing the need for a UAE national or employer to provide sponsorship.

Requirements:

• Freelancers and Self-Employedsome text
  • Freelance/self-employment permit from the Ministry of Human Resources and Emiratisation
  • Bachelor’s degree or specialized diploma
  • Proof of annual income of at least AED 360,000 for the past two years, or financial solvency for your duration of stay.
• Skilled Employeessome text
  • Valid employment contract
  • Classification in the first, second, or third occupational level
  • Minimum of a bachelor’s degree or equivalent
  • Salary of at least AED 15,000 per month

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• Standard Work Visa

Your employer is responsible for this application, and will need to apply for a residency visa through the General Directorate of Residency and Foreigners Affairs (GDRFAD) Dubai. Available for employees in the private and government sectors and free zone. 

• Golden Visa 

The UAE’s Golden visa is a long-term residence visa designed for foreign talents, offering the following benefits:

• Entry visa: A six-month entry visa with multiple entries to proceed with residence issuance.
• Long-term residence: Renewable visa valid for 5 or 10 years.
• No sponsor needed: Allows holders to live without needing a local sponsor.
• Extended stay: Permits holders to stay outside the UAE beyond the usual six-month period.
• Family sponsorship: Enables sponsorship of family members, including spouses and children of any age, and unlimited domestic helpers.
• Continuity: Family members can remain in the UAE until their permit expires if the primary visa holder passes away.

• Student Visa

Students need a student visa, which are typically valid for one year and renewable annually. To apply, provide a passport, recent photos, an acceptance letter from a UAE educational institution, and a tenancy agreement if applicable. A security check and medical tests for tuberculosis, HIV, and hepatitis may also be required.

As all this information is subject to change, be sure to check the finer details before taking the leap. Find more info here. 

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Finding a job

Finding a job in Dubai can be an exciting opportunity due to its tax-free income and diverse job market. To get started, you can explore popular online job boards such as Bayt, Buzzon, Dubizzle, Naukrigulf, and Gulf Talent. 

Alternatively, consider partnering with a reputable recruitment agency known for connecting job seekers with Dubai employers (be sure to check the reviews!). If possible, it’s advisable to secure a position before arriving. 

Job seekers can also use English-speaking sites like UAE Recruitment Agency, Caterer Global, GoToGulf, and Gulflancer. 

Be aware that the work week typically runs from Sunday to Thursday, with Friday and Saturday as the weekend, and working hours are reduced during Ramadan.

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Finding a place to stay

Finding a place to live in Dubai can be a bit of a task, but it’s manageable with some prep. Many jobs come with housing perks or allowances, but if you’re renting, don’t be surprised if you’re asked to fork over six months to a year’s rent upfront. You’ll find both furnished and unfurnished options, so pick what suits you best.

If you’re eyeing swanky areas like Jumeirah or Dubai Marina, be prepared for higher rents and fierce competition. For something a bit easier on the wallet, try The Lakes, The Meadows, or The Springs. And if you don’t mind a longer drive, the suburbs along Sheikh Zayed Road have plenty of choices too.

In Dubai, renting a one-bedroom apartment in the city center averages around €2,000 per month, while outside the city center it’s more affordable at approximately €1,250. For a three-bedroom apartment, expect to pay about €3,750 in the city center and €2,600 outside of it.

Here’s a quick rundown of what renting an apartment will entail:

1. Make an offer: Agree on the rent and terms.
2. Pay a deposit: Usually one month’s rent, plus a copy of your passport and visa.
3. Sign the lease: Review and sign the tenancy contract.
4. Register your lease: Use Ejari to register your lease online or via an agent.

You’ll need:

• Original lease contract
• Landlord’s title deed
• Passport copies (yours and the landlord’s)
• Emirates ID

Also, remember to apply for utilities with DEWA and get a move-in permit if needed. If you’re using an agent, make sure they’re registered with Dubai’s Real Estate Regulatory Agency (RERA).

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Cost of Living

The good news is that living in Dubai is considerably more affordable than living in cities like New York. Here’s a quick look at some common costs:

• Basic utilities (electricity, heating, cooling, water, garbage) for a 915 sq ft apartment: 732.78 AED (€180)
• Mobile phone monthly plan (calls and 10gb+ data): 197.80 AED (€50)
• Internet (60 mbps or more, unlimited data): 365.99 AED (€90)
• Fitness club monthly fee: 316.49 AED (€78)

Estimated monthly costs without rent:

• Single Person: 4,020.9 AED (€990)
• Family of Four: 14,036.8 AED (€3,500)

Overall, Dubai is about 40.8% cheaper than New York without considering rent, and rent in Dubai is approximately 49.9% lower.

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Setting up a bank account

After receiving your visa, you’ll need to get your Emirates ID through the Federal Authority for Identity, Citizenship, Customs and Ports Security website. It’s not just for the bank; it's a legal requirement for everyone in the UAE to carry it.

Once you’ve got this, opening a bank account is relatively straightforward. For this you'll need to provide:

• A copy of your passport with the residence visa
• A copy of your Emirates ID card
• A salary certificate or a letter from your employer or sponsor confirming this

Setting up a bank account might take some time, so you will need other ways to handle your money initially. That’s where services like Tap can come in handy.

With the Tap app, you can manage all your currencies in one place (fiat and crypto), load funds as you need onto your Tap card, and pay for goods and services with a single Tap. The app also allows you to pay bills back home effortlessly, using your preferred currency. Learn more here. 

Please note that once you have received your residency permit you are no longer allowed to use the Tap app in the UAE as we do not cover that jurisdiction.

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Getting around Dubai

Dubai's transport system is just as sleek and efficient as the city itself. The Dubai Metro, with its state-of-the-art setup, is a budget-friendly way to get around. A single ticket costs around 7 AED (about €1.7), and a monthly pass for unlimited rides is around 300 AED (about €74).

If you prefer a more personalised touch, taxis are readily available, starting at 12 AED (€3) with a rate of around 4.83 AED (€1.2) per mile. 

Thinking of driving? Dubai’s roads are well-kept, though traffic can get intense. Gas is reasonably priced at 11.35 AED (€2.8) per gallon, making car ownership appealing. A new Volkswagen Golf or something similar will set you back about 124,000 AED (€30,500). Renting a car is also an option, offering a taste for driving without the long-term commitment. 

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Accessing the healthcare system

The UAE’s healthcare system is pretty extensive, with both government-funded and private options available. 

In Dubai, you can get free or affordable care at public hospitals if you have a health card from the Department of Health and Medical Services. Employers are required to provide health insurance for their staff, and if you’re sponsoring family members, you’ll need to cover them too. 

If you’re handling your own sponsorship, you’ll need to sort out your own insurance coverage.

Learn the language

If you want to really get involved, you can learn some basics. Arabic is the official language in Dubai and the UAE, but you'll hear English spoken by many residents. Due to the influx of international visitors, languages like Hindi, Chinese, and Urdu are also common. 

If you’re keen to pick up some Arabic, there are plenty of free online resources like Duolingo and Madinah Arabic. Local universities and schools in Dubai also offer language classes if you prefer a more hands-on approach.

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Conclusion

So there you have it. From navigating the visa maze to mastering the art of Metro-hopping, you're now equipped with the essentials for your desert adventure. 

Remember, Dubai is a city where ancient traditions dance with futuristic dreams, so whether you're chasing career heights in a skyscraper or perfecting your Arabic in a local café, embrace the journey. Pack your sunscreen, your sense of wonder, and maybe a phrase book – your Dubai story awaits.

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When making purchases with your debit card, you’re typically asked to provide a security code, also known as a CVV or CVV2 code. This 3-digit (or sometimes 4-digit) number is an important security feature that helps protect your card from unauthorised use. Understanding what this code is, where to find it, and why it's crucial to keep it safe can help prevent financial fraud and give you greater control over your accounts. In this article, we dive into the details.

What is the security code used for?

The debit card security code serves a critical purpose in verifying your identity and protecting against fraudulent activity. When you provide the code during a transaction, it confirms that you physically possess the card, rather than just having access to the card number alone. 

This helps prevent criminals from making unauthorised purchases, especially for online, phone, or mail-order transactions where the physical card is not present. By requiring the security code, merchants and financial institutions can have an additional safeguard against fraud, giving you greater confidence that your hard-earned money stays secure.

Why are debit card security codes important?

The bottom line is that debit card security codes play a vital role in safeguarding your financial information and protecting your hard-earned money. This security code acts as an additional layer of security beyond just your card number and expiration date and without it, criminals would have a much easier time making unauthorised purchases or accessing your accounts. 

Where can I find my debit card security code?

The debit card security code is typically found in one of two places on your card: 

On most standard debit cards, the 3-digit code is printed on the back of the card, often in the signature strip or just to the right of it. 

Some debit cards may have a 4-digit security code that is printed on the front of the card, usually in the top right corner. 

How debit card security codes work with contactless payments

While debit cards with security codes are primarily used for in-person, online, and over-the-phone transactions, the code also plays a role in contactless or "tap-to-pay" payments. 

When you hold your debit card up to a contactless payment terminal, the 3- or 4-digit security code is digitally transmitted along with your card information. This allows the payment system to verify your identity and approve the transaction, just as it would for a contact-based payment that requires manually entering the security code. 

The security code therefore provides an extra layer of protection, even for quick tap-and-go purchases.

CVV vs OTP

The key difference between a debit card's CVV (card verification value) code and an OTP (one-time password) lies in how they function to verify transactions. A CVV is a static 3 or 4-digit code printed on your physical debit card, which you manually enter to confirm your identity. 

In contrast, an OTP is a dynamically generated code, typically sent to your mobile device via SMS from the bank or an authentication app, that changes with each new transaction. While both add an extra security layer, OTPs provide stronger protection, as they cannot be reused like a static CVV. 

Combining the use of your debit card's CVV code and a one-time password (OTP) provides the strongest protection against financial fraud.

CVV vs PIN

Your debit card's PIN (Personal Identification Number) is different from the CVV (card verification value) code.

The PIN is used to verify in-person transactions when you use the physical card, like at a store checkout or ATM.

The CVV code is used instead for remote purchases, like online or over the phone, where the physical card isn't present.

Closing thoughts

In summary, the debit card security code, also found on a credit card, is an essential safeguard against fraud and unauthorised transactions. By understanding what this code is, where to find it, and how it protects your finances, you can take control of your financial security and enjoy greater peace of mind when using your debit card in the wild or online. 

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Crypto is never short on surprises, and staying true to its word 2024 has delivered a wild new trend: PolitiFi coins. These politically-themed digital assets have managed to give the election a run for its money in terms of surprises, breaking onto the scene with an eye-popping 782.4% growth in just 8 months. 

To put that into perspective, “traditional” meme coins only managed 90.2% growth in the same time. Political views aside, one thing we can all agree on is that there is never a dull moment in the crypto space. 

What is PolitiFi?

These politically-themed meme coins draw inspiration from famous political figures and events, often in a playful or satirical way. But most of these coins are not officially linked to any real politicians. Much like other meme coins, their value is totally speculative, riding the waves of community buzz and whatever’s trending in the news.

From zero to $2.1 billion

What started as a seemingly niche intersection of politics and crypto has grown into a substantial market worth $2.1 billion as of November 2024. While this represents just 1.77% of the broader meme coin market, PolitiFi's rapid incline tells an intriguing story of how quickly new crypto categories can capture investor attention - and capital.

Politics meets blockchain

What sets PolitiFi apart is its unique responsiveness to real-world political events. For instance, when Donald Trump won the Iowa Republican caucuses in January, MAGA (TRUMP) surged 79.1% in a single day.

Continuing on this narrative, the market has shown similar sensitivity to events ranging from legal verdicts to health scares, with tokens like Jeo Boden (BODEN) and Kamala Horris (KAMA) swinging dramatically on related news. 

The Trump assassination attempt even saw MAGA (TRUMP) rally 41.2%, while Biden's COVID-19 diagnosis caused Jeo Boden to plummet 27.3%.

No jokes, just a new political ecosystem

While most PolitiFi tokens began as satire, some have evolved to serve more practical purposes. MAGA (TRUMP), for instance, channels transaction fees directly to Donald Trump's Ethereum wallet and aligned charities, creating an unconventional yet innovative intersection between cryptocurrency speculation and political fundraising.

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Is crypto a new form of political expression?

Time will tell whether PolitiFi is just another crypto trend, but for now it serves as a new way for people to engage with politics. These tokens mix financial speculation, political commentary, and grassroots fundraising, creating a space where community opinions can be quickly turned into monetary support.

As digital finance, political activism, and social commentary keep overlapping, PolitiFi coins might signal a new era of political involvement. Whether this is a short-lived trend or the start of a big shift in how we connect with political causes is still up in the air.

One thing's for sure: in the unpredictable world of crypto, surprises are the norm, and that’s exactly what makes it exciting.

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The way money moves is changing fast: digital currencies have evolved from investment assets to practical tools for daily transactions. With big names like Microsoft, AT&T, and Starbucks now accepting crypto payments, mainstream acceptance is officially on the rise.

Why businesses are making the switch

Financial efficiency

Traditional payment systems often have drawbacks: high fees, processing delays, and complicated international transfers. Cryptocurrency helps solve these issues by offering:

• Near-instant settlement times
• Minimal transaction fees, especially for cross-border payments
• No currency conversion costs
• Reduced operational overhead

Enhanced security architecture

The underlying blockchain technology provides businesses with unprecedented security benefits:

• Immutable transaction records
• Distributed verification systems
• Protection against unauthorised reversals
• Reduced risk of payment fraud

Market expansion opportunities

By accepting cryptocurrency, businesses can:

• Tap into the growing crypto-native consumer base
• Reach underbanked populations globally
• Operate in international markets without traditional banking constraints
• Appeal to privacy-conscious customers

Implementation guide: accepting crypto payments

Step 1: Choose your integration method

• Direct wallet-to-wallet transfers
• Payment processor integration
• Hybrid solutions with automatic conversion to fiat

Step 2: Set up your infrastructure

• Create business cryptocurrency wallets
• Implement QR code generation systems
• Establish transaction verification protocols
• Train staff on handling crypto payments

Step 3: Customer experience design

• Clear payment instructions at checkout
• Multiple cryptocurrency options
• Transparent fee structure
• Real-time exchange rate display

With Tap’s Business Accounts we will assign a dedicated account manager to you who will run you through each of these steps making the transition incredibly smooth. 

Strategic advantages

Risk management

• Protection against chargebacks
• Reduced exposure to payment fraud
• Built-in transaction verification
• Immutable payment records

Operational benefits

• Automated payment processing
• Reduced administrative overhead
• Simplified international transactions
• Real-time settlement

Financial planning

• Potential tax advantages (varies by jurisdiction)
• Inflation hedge through crypto assets
• Reduced payment processing costs
• New revenue stream opportunities

Customer transaction process

1. Selection: Customer chooses cryptocurrency payment option
2. Verification: System generates unique payment address or QR code
3. Transfer: Customer initiates payment from their digital wallet
4. Confirmation: Transaction is verified on the blockchain
5. Completion: Payment is settled and order is processed

Future-proofing your business

The adoption of cryptocurrency payments isn't just about staying current - it's about preparing for a future where digital currencies play an increasingly important role in global commerce. Businesses that integrate these payment systems now gain:

• First-mover advantage in their market
• Experience with blockchain technology
• Enhanced appeal to tech-savvy customers
• Operational flexibility for future expansion

Privacy and transparency balance

One of cryptocurrency's unique features is its ability to provide both privacy and transparency simultaneously:

• Transactions are publicly recorded but pseudonymous
• Customer personal data isn't required for processing
• Audit trails are automatically maintained
• Regulatory compliance is simplified through built-in tracking

Looking ahead

The crypto revolution isn't just changing how we think about money – it's transforming how businesses operate. Forward-thinking companies integrating digital currencies are doing more than just adding another payment option; they're positioning themselves at the cutting edge of a new financial era.

Think of cryptocurrency adoption like the early days of e-commerce. What seemed optional in the late '90s quickly became essential for survival. We're seeing similar patterns with digital currencies, where early adopters are gaining valuable experience and competitive advantages while others play catch-up.

The real power of crypto payments extends far beyond transactions. They're unlocking new business models, breaking down international barriers, and offering unprecedented financial flexibility. For businesses eyeing global expansion or looking to reduce transaction costs, crypto isn't just an alternative – it's becoming a strategic imperative.

The decision to accept cryptocurrency payments should be based on your business's specific needs and goals. But let's be practical: timing matters. Your business's unique circumstances – market position, customer base, technical capabilities – should guide your implementation strategy. While the question of adoption is shifting from "if" to "when," rushing in without proper preparation could do more harm than good.

Smart implementation means integrating crypto alongside your existing payment infrastructure. Think of it as expanding your payment ecosystem rather than replacing it. Your customers should have choices, whether they're crypto enthusiasts or prefer traditional payment methods to ensure maximum customer accessibility and business flexibility.

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In the continuously evolving landscape of cryptocurrencies, stablecoins stand out as the level-headed cousins of the more volatile digital assets. These cryptocurrencies, designed to maintain a stable value, have been gaining traction in the financial world. However, their rising popularity has not gone unnoticed by regulators, particularly in the European Union.

The EU, known for its proactive stance on financial regulation, has set its sights on stablecoins. Recent developments indicate a significant shift in the regulatory approach, with new rules being implemented that could substantially impact the future of stablecoins in Europe. 

This blog takes a look at the EU's latest regulatory measures, their implications for the stablecoin market, and what this means for the broader cryptocurrency ecosystem.

What is Markets in Crypto-Assets (MiCA)?

The Markets in Crypto-Assets (MiCA) regulation serves as a unified framework to standardise crypto-asset regulation throughout the European Economic Area (EEA). Its goals are to foster innovation while safeguarding consumer interests, ensuring market integrity, and maintaining financial stability. 

By replacing individual national regulations, MiCA creates a consistent approach for crypto-asset service providers and token issuers.

Under Titles III and IV, MiCA’s stablecoin provisions took effect on 30 June 2024. This framework also introduces a licensing process for companies issuing stablecoins within the EEA, meaning that only MiCA-compliant entities will be permitted to issue and distribute stablecoins across the region.

How the EU defines stablecoins

According to the EU's MiCA regulation, stablecoins are categorised into two distinct types:

• E-money tokens (EMTs): These stablecoins are pegged to a single official currency, functioning similarly to electronic money. E.g. USDT and USDC.
• Asset-referenced tokens (ARTs): These stablecoins are backed by multiple assets, such as a diversified basket of currencies, commodities, or other cryptocurrencies. E.g. DAI and PAXG.

Both types are designed to provide stability in the often volatile cryptocurrency market, but each has its own specific regulatory requirements under MiCA.

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Key EU regulations on stablecoins

MiCA imposes restrictions on stablecoin issuance and usage, particularly focusing on their use as a means of exchange for goods and services. This regulation aims to protect monetary sovereignty within the EU.

For foreign currency e-money tokens (like USDC or Tether) and asset-referenced tokens, there are limits on their use for everyday transactions within the EU. However, these limits are specifically designed not to restrict stablecoin use within the crypto world or for broader investment purposes.

The regulation allows for unlimited use of stablecoins for crypto-related activities and investments but aims to limit their use as a replacement for traditional currencies in everyday transactions.

A great takeaway is that the EU is preparing for stablecoins to make a bigger appearance in everyday financial transactions. 

Limits on Transaction Volumes

MiCA sets daily limits on non-EU currency stablecoins used "as a means of exchange within a single currency area." Issuers are required to halt issuance if daily usage surpasses 1 million transactions or €200 million.

However, several exclusions reduce the scope of these limits:

• Transactions involving at least one party outside the EU are exempt.
• Investment-related transactions, including those involving crypto assets, are excluded.
• Transactions between non-custodial wallets are not subject to reporting.
• Collateral and derivatives transactions are not counted.

Guidance from the European Banking Authority (EBA) has further clarified these exemptions, suggesting that the impact on stablecoin usage may be minimal. However, for issuers aiming to expand in the EU’s retail payments market, MiCA indicates a clear preference for Euro-based stablecoins over foreign currency alternatives.

Requirements for Stablecoin Issuers

Out of interest, MiCA’s framework also outlines key requirements for stablecoin issuers:

• Reserve Management: Issuers must ensure that reserve assets are effectively managed, remain separate from their own assets, and are not pledged as collateral.
• E-money Token Issuers: These issuers must be licensed either as credit institutions or electronic money institutions (EMIs) and must allow holders to redeem the token’s value against the referenced currency at any time.
• Asset-Referenced Token Issuers: These issuers are required to maintain a reserve to back the token's value, mitigating currency and market risks. They must obtain regulatory authorisation and have their whitepaper approved before launching tokens to the public.
• Reporting: Issuers are also required to submit quarterly transaction volume reports to ensure ongoing compliance with regulatory thresholds.

Final thoughts

The EU’s regulatory approach to stablecoins under MiCA strikes a careful balance between fostering innovation and maintaining financial stability. By categorising stablecoins and setting strategic limitations, the EU signals an openness to progress while emphasising stability. 

Moving forward, we can anticipate a more organised stablecoin market within the EU, with Euro-based options likely leading in routine transactions. In a broader picture, internationally, the EU’s approach may set a regulatory benchmark, encouraging other regions to adopt similar frameworks. 

As this regulatory journey progresses, the global cryptocurrency community will be watching closely to see the impact of the EU’s structured approach.

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In this article, we're covering what transaction fees are, and taking a look at which cryptocurrencies offer the lowest transaction fees.

While long-term traders are unlikely to get affected by transaction fees, short-term traders and people actively using cryptocurrencies are often plagued with excessive fee structures.

This complaint has led to layer 2 solutions, where transactions can most quickly and cost-effectively be executed, as well as new blockchain platforms entirely (as was the case when developers migrated away from Ethereum due to high transaction costs).

What are transaction fees?

Transaction fees are fees paid to the miner of the network to execute the transaction. While some networks differ in how they operate, transaction fees are consistent across the board. Looking at Bitcoin as an example, when a user sends BTC the transaction is entered into a pool of pending transactions known as a mempool. 

The miner will then pick up a batch of transactions and validate them, checking to see whether the original wallet does in fact have the funds to send and if the wallet addresses are valid. Once the transaction is executed, the data relevant to the transaction is added to a block, which is added to the blockchain chronologically. 

As compensation to the miner for their time and electricity, they earn a small crypto transaction fee from each transaction as well as a reward for adding the block, known as a miner's reward. This process also ensures the safety and integrity of the network.

When the networks are very busy, the cost of sending a transaction is increased. Users can then choose to add in a higher crypto transaction fee in order to prioritise their transaction in the mempool. 

Transaction fees for smart contracts are based on how much electricity will be needed to complete the task. Typically, transaction fees on smart contracts are much higher.

Generally, the terms transaction fee and network fee can be used interchangeably. They both refer to the transaction fee necessary by the network for the transaction to get processed.

Exchange fees refer to something else entirely. Exchange fees are fees charged by the exchange in order to conduct the service. Be sure to check before conducting a transaction on an exchange as you might be required to pay a transaction fee (or network fees) as well as exchange fees.

How to pay less for transaction fees

A transaction fee is imperative to your transaction getting executed so it cannot be avoided entirely, however, there are ways to reduce the amount you need to pay.

Transaction fees increase when the network is busy, so sending your transaction while the network is quieter is a great way to reduce the transaction fee. Typically the busier periods are during business hours in the United States. 

Look out for the Lightning Network for Bitcoin and layer-2 scaling solutions for Ethereum as these will provide a cost-effective solution to high transaction costs on those networks.

Which cryptocurrency has the lowest average transaction fee?

Let's take a look at some of the most popular cryptocurrencies and the average transaction fee associated with their platforms. 

XRP - $0.0002 per transaction

Developed by Ripple Labs, XRP is optimised for fast, affordable cross-border payments, with a focus on serving financial institutions and remittance providers. Thanks to its unique architecture, XRP has cemented its status as a key player in the payment processing space.

XRP's minimal costs and 4-second transaction times make it a preferred choice for users and institutions alike. 

Solana (SOL) - $0.00025 per transaction

Solana’s transaction fees cost just fractions of a cent ($0.00025), with complex transactions also coming in incredibly cheap. The network stands out for its lightning-fast transactions, typically wrapping up in about 2.5 seconds. Thanks to its scalable design, Solana can handle many transactions simultaneously, making it a hit for dapps and big blockchain projects.

This efficiency, coupled with its rapid speed, has made Solana a favourite among both developers and users, and a permanent feature in the top 10 biggest cryptocurrencies based on market cap (currently number 5).

Litecoin (LCH) - $0.0025 per transaction

Litecoin stands out as one of the cheapest crypto options out there, costing around $0.0025 per transfer. As an early pioneer in the space, Litecoin was designed with fast, affordable payments in mind, borrowing and refining Bitcoin's underlying technology. Litecoin's speedy 2.5-minute transaction times add to this appeal.

The minimal fees on Litecoin are a huge plus, with its efficiency and speed making Litecoin an attractive choice for those seeking a cost-effective crypto.

Bitcoin Cash (BCH) - $0.01 per transaction

Bitcoin Cash makes it onto the list with an attractive $0.01 average transaction fee. As a Bitcoin offshoot, BCH was engineered for faster, more affordable transfers via larger block sizes. 

The cost-effective fees on Bitcoin Cash have made BCH a viable option for those looking for a low-cost market entry and equally impressive low-cost transaction fees. 

Dogecoin (DOGE) - $0.04 per transaction

Dogecoin, born in 2013 as a playful take on crypto, has surprisingly become a significant player in the crypto space. Despite its lighthearted meme-inspired origins, Dogecoin's enthusiastic community and celebrity endorsements have propelled it into the mainstream. 

Its low $0.04 average transaction fees and fast 1-minute transaction times make it practical for frequent micro-transactions like tipping and donations, blending fun and function.

Trade smart, trade with Tap

Users can trade all the tokens mentioned above with equally impressive low-cost exchange fees directly on the Tap app. Adding to the cost-effective nature of the platform, it also offers heightened security and added convenience. It's time to trade smarter, download the Tap app and get started today. 

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With billions of credit, debit and prepaid cards in circulation around the world, they are undoubtedly a permanent fixture in the payments sector. According to Statista, over the two-year period from 2019 to 2021, the total number of credit, debit, and prepaid cards globally increased by 2 billion, reaching 25.2 billion cards, with this volume projected to grow by 21% between 2021 and 2025 before stabilising.

Further on this, the payments landscape has evolved to include a wide array of digital payment methods beyond just traditional cards. These include enabling payments via SMS on mobile phones, "Buy Now, Pay Later" financing schemes, mobile wallets, contactless payments leveraging Near Field Communication technology, QR code-based transactions, and cryptocurrency payments.

As these trends continue developing, a prominent feature on the landscape is customizable white-label cards, which while tailored to the unique needs of the client, can incorporate any of these methods mentioned above. Let’s explore the white-label card market. 

What is a white-label card?

To recap, white-label products and services are made by a third party but sold under a distinct brand, allowing that brand to seamlessly use the infrastructure already established by the third party. This practice has expanded beyond retail into the financial sector, enabling businesses to offer their own branded payment cards.

With white-label card issuing, a company can issue cards under its own branding, while the underlying functionality and processing are provided by third-party services. This allows the business to introduce branded cards without the complexity of obtaining a separate issuing licence required in the regulated financial sector.

As an example, in 2023, Bitfinex, a prominent cryptocurrency exchange platform, partnered with Tap to offer a white-label prepaid card solution. This allowed Bitfinex to provide its clients with a branded payment option while generating a new revenue stream, leveraging Tap's underlying financial infrastructure.

The many white-label card solutions

White-label payment cards come in various forms to suit diverse financial needs:

Debit cards 

Provide access to bank account funds for daily transactions and ATM withdrawals.

Credit cards 

Allow borrowing up to a limit, similar to traditional credit.

Prepaid cards 

Loaded with a set amount for budgeting and spending control.

Virtual cards 

Exist only digitally for secure online payments.

Payroll cards

Where employers directly deposit wages, eliminating the need for cash or direct transfers.

Expense cards

With specific purposes and spending limits or restrictions, like for business expenses.

The advantages of white-label cards for consumers

While the benefits of white-label cards are typically associated with businesses, there are several advantages for the consumer, too. 

• Customised perks

White-label cards provide tailored rewards, discounts, and exclusive offers to enhance the shopping experience and deliver savings.

• Streamlined shopping experiences

These cards can streamline purchases within specific stores or brands, making transactions convenient and focused on preferred retailers.

• Improved credit access

Consumers with diverse credit profiles can often access white-label cards, enabling them to build or improve their credit history through responsible usage.

The advantages of white-label cards for businesses

White-label card issuing provides businesses with several key advantages:

• Distinctive branding

Cards can be tailored to match the business's branding, enhancing visibility and customer recognition.

• Quick market entry

Partnering for white-label issuance enables a quick introduction of new card offerings, establishing a market presence before saturation.

• Reduced development costs

Businesses can offer branded cards without the expense of developing a full card program from scratch, instead leveraging already established payment infrastructure. 

• Increased customer engagement

Branded cards with rewards, discounts, or exclusive benefits can foster loyalty and repeat business with new or established customers.

• Seamless operations

By tapping into an established infrastructure, businesses ensure seamless functionality, security, and dependability for cardholders.

Industries utilising white-label cards

White-label card issuing has emerged as a versatile solution, catering to the needs of diverse industries, from neobanks and retailers to gig platforms and fleet management.

Retail and E-commerce

White-label credit programs allow retailers to provide customers with relaxed payment terms, encouraging higher spending through the convenience of deferred payment. Customers often earn loyalty rewards, fostering repeat business. Retail giants frequently offer private-label credit cards, such as Amazon's virtual cardless solution and its Prime Store Card.

Neobanks

Many neobanks have adopted white-label card solutions, like Revolut, enabling seamless multi-currency spending, especially for international travel. Revolut empowers customers with full control over their banking experience, offering a choice between NFC and magnetic stripe payment preferences.

Corporate cards

For large organisations, white-label corporate credit cards integrated into expense management programs can streamline processes, eliminating the need for manual tasks like expense reporting and payroll management.

Fuel cards for fleets

Fleet white-label cards are specialised payment solutions tailored for businesses operating vehicle fleets. These cards, often offered in collaboration with financial institutions, streamline expense management and provide benefits like fuel discounts.

Gig economy

As gig platforms continue to rise, integrating white-label card solutions has become a notable advancement. Fiverr, a freelance services platform, has embraced white-label cards to enhance user experience, enabling swift transactions and access to earnings.

The current state of the white-label card sector

The white-label card market is experiencing substantial growth and innovation, presenting significant opportunities across industries. These white-label solutions, including debit, credit, and prepaid cards, enable companies to customise payment gateways and card products as their own, without the overhead of building infrastructure from scratch.

Businesses like e-commerce platforms, SaaS providers, financial institutions, and online marketplaces commonly benefit from white-label cards. These offerings allow companies to strengthen their brand, enhance customer loyalty, and unlock new revenue through tailored loyalty programs and rewards.

A key advantage of white-label cards is their adaptability. They support various payment methods, accommodate international transactions, and integrate seamlessly with existing systems, providing a streamlined customer experience. This flexibility extends to virtual cards, which are gaining popularity for their ease of use in digital payments.

In summary, the white-label card sector offers a robust platform for businesses to expand payment solutions with minimal infrastructure investment, enhancing their service offerings and customer engagement.

For more information on issuing your own white-label card, you can learn more about Tap’s business services on the website here and contact Tap here. 

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Bitcoin options trading has been making waves as a small yet significant catalyst in Bitcoin’s latest price surge. The launch of Bitcoin options linked to BlackRock’s iShares Bitcoin Trust ETF brought new energy to the market, attracting attention from both big institutions and everyday investors. 

But this bull run isn’t just about options trading, it’s driven by growing confidence in Bitcoin’s future, boosted by market trends, technological progress, and changes in regulations. Let’s take a closer look at what Bitcoin options trading is and how it fits into this exciting rally.

What are Bitcoin options?

Options trading is a type of financial trading where you buy or sell the right, but not the obligation, to purchase or sell an asset, like Bitcoin, at a specific price within a set time frame. Essentially, you’re betting on whether the price of that asset will go up or down.

There are two types of options: calls and puts. A call option lets you buy the asset at a certain price (if you think the price will rise), while a put option lets you sell it at a certain price (if you think the price will drop). Instead of buying the asset outright, you’re paying a smaller fee, called a premium, for the option to trade later.

Traders typically use options to hedge risk or profit from price movements without directly owning the asset. In the case of Bitcoin, options trading allows investors to manage volatility while taking advantage of its price swings, making it a popular tool in the fast-moving crypto market.

The game-changer: Bitcoin ETF options

January 2024 marked a historic moment when the SEC approved spot Bitcoin ETFs, and now we're seeing the next evolution with Bitcoin ETF options. BlackRock's iShares Bitcoin Trust ETF (IBIT) made waves when its options began trading on the Nasdaq, quickly becoming one of the most exciting new financial products on the market.

The numbers tell the story: In just the first hour of trading, IBIT saw 73,000 options contracts traded, instantly placing it among the top 20 most active non-index options. 

Why Bitcoin ETF options matter

The introduction of Bitcoin ETF options is significant for several reasons:

1. Accessibility: Anyone can now trade Bitcoin options through traditional brokerage accounts, no crypto exchange is required.
2. Regulated environment: These products trade on established exchanges like Nasdaq, offering a level of oversight that many crypto platforms can't match.
3. Market sophistication: The availability of ETF options helps mature the Bitcoin market, potentially leading to more stable prices over time.

The new Bitcoin ETF options landscape

The Bitcoin ETF options market is growing fast, with big names like BlackRock's iShares Bitcoin Trust (IBIT), Grayscale Bitcoin Trust (GBTC), Fidelity Wise Origin Bitcoin Fund (FBTC), and ARK 21Shares Bitcoin ETF (ARKB) leading the way. These funds are already offering or planning to offer options trading, giving investors more choices than ever before.

As the market develops, experts expect to see even more innovative products, including covered call funds, buffer funds, trend-following strategies, and other option-based investment tools. This rapid growth is certainly making the crypto space more dynamic and accessible for more “traditional” investors.

Final thoughts

The launch of Bitcoin ETF options is a big step forward for the crypto market as it continues to grow and evolve. While these options bring exciting opportunities they also come with their own risks and complexities, so whether you’re curious or serious about trading, it’s important to fully understand how they work before diving in.

The financial world is undergoing a significant transformation, largely driven by Millennials and Gen Z. These digital-native generations are embracing cryptocurrencies at an unprecedented rate, challenging traditional financial systems and catalysing a shift toward new forms of digital finance, redefining how we perceive and interact with money.

This movement is not just a fleeting trend but a fundamental change that is redefining how we perceive and interact with money.

Digital Natives Leading the Way

Growing up in the digital age, Millennials (born 1981-1996) and Gen Z (born 1997-2012) are inherently comfortable with technology. This familiarity extends to their financial behaviours, with a noticeable inclination toward adopting innovative solutions like cryptocurrencies and blockchain technology.

According to the Grayscale Investments and Harris Poll Report which studied Americans, 44% agree that “crypto and blockchain technology are the future of finance.” Looking more closely at the demographics, Millenials and Gen Z’s expressed the highest levels of enthusiasm, underscoring the pivotal role younger generations play in driving cryptocurrency adoption.

Desire for Financial Empowerment and Inclusion

Economic challenges such as the 2008 financial crisis and the impacts of the COVID-19 pandemic have shaped these generations' perspectives on traditional finance. There's a growing scepticism toward conventional financial institutions and a desire for greater control over personal finances.

The Grayscale-Harris Poll found that 23% of those surveyed believe that cryptocurrencies are a long-term investment, up from 19% the previous year. The report also found that 41% of participants are currently paying more attention to Bitcoin and other crypto assets because of geopolitical tensions, inflation, and a weakening US dollar (up from  34%). 

This sentiment fuels engagement with cryptocurrencies as viable investment assets and tools for financial empowerment.

Influence on Market Dynamics

The collective financial influence of Millennials and Gen Z is significant. Their active participation in cryptocurrency markets contributes to increased liquidity and shapes market trends. Social media platforms like Reddit, Twitter, and TikTok have become pivotal in disseminating information and investment strategies among these generations.

The rise of cryptocurrencies like Dogecoin and Shiba Inu demonstrates how younger investors leverage online communities to impact financial markets². This phenomenon shows their ability to mobilise and drive market movements, challenging traditional investment paradigms.

Embracing Innovation and Technological Advancement

Cryptocurrencies represent more than just investment opportunities; they embody technological innovation that resonates with Millennials and Gen Z. Blockchain technology and digital assets are areas where these generations are not only users but also contributors.

A 2021 survey by Pew Research Center indicated that 31% of Americans aged 18-29 have invested in, traded, or used cryptocurrency, compared to just 8% of those aged 50-64. This significant disparity highlights the generational embrace of digital assets and the technologies underpinning them.

Impact on Traditional Financial Institutions

The shift toward cryptocurrencies is prompting traditional financial institutions to adapt. Banks, investment firms, and payment platforms are increasingly integrating crypto services to meet the evolving demands of younger clients.

Companies like PayPal and Square have expanded their cryptocurrency offerings, allowing users to buy, hold, and sell cryptocurrencies directly from their platforms. These developments signify the financial industry's recognition of the growing importance of cryptocurrencies.

Challenges and Considerations

While enthusiasm is high, challenges such as regulatory uncertainties, security concerns, and market volatility remain. However, Millennials and Gen Z appear willing to navigate these risks, drawn by the potential rewards and alignment with their values of innovation and financial autonomy.

In summary

Millennials and Gen Z are redefining the financial landscape, with their embrace of cryptocurrencies serving as a catalyst for broader change. This isn't just about alternative investments; it's a shift in how younger generations view financial systems and their place within them. Their drive for autonomy, transparency, and technological integration is pushing traditional institutions to innovate rapidly.

This generational influence extends beyond personal finance, potentially reshaping global economic structures. For industry players, from established banks to fintech startups, adapting to these changing preferences isn't just advantageous—it's essential for long-term viability.

As cryptocurrencies and blockchain technology mature, we're likely to see further transformations in how society interacts with money. Those who can navigate this evolving landscape, balancing innovation with stability, will be well-positioned for the future of finance. It's a complex shift, but one that offers exciting possibilities for a more inclusive and technologically advanced financial ecosystem. The financial world is changing, and it's the young guns who are calling the shots.

The financial world is currently undergoing a remarkable technological transformation, led by the rise of open banking, open finance, and embedded finance. While these terms may seem similar, each represents a distinct approach with unique implications. Understanding the nuances between these emerging service models is not only interesting but will add value to your endeavours in the financial realm. Ultimately, they hold the power to fundamentally reshape how we access and manage our money.

In this article, we'll explore the defining characteristics of each trend - their origins, benefits, and the broader ecosystem in which they thrive. 

What is open banking?

Origins and key principles

At the heart of the financial technology revolution lies open banking - a model that has its origins in the need for increased transparency, competition, and consumer choice within the banking industry. 

The key principles of open banking centre around empowering individuals and businesses to securely share their financial data with third-party providers, like fintechs for example, enabling a new era of innovative services and personalised experiences.

Regulatory frameworks

Regulatory frameworks like the European Union's Payment Services Directive (PSD2) have been instrumental in systemising and accelerating the open banking movement, in fact, it has been referred to as the “starting point” of the open banking solution. 

These regulations have encouraged fintech firms and developers to use customer data from banks securely through APIs, leading to better products and services.

Benefits for consumers and businesses

Open banking brings numerous benefits for both businesses and consumers. 

• Consumers can control their financial data better, manage accounts across different institutions easily, and use personalised money management tools. 
• Businesses can integrate banking features into their platforms using open APIs, enhancing customer experience and creating new revenue streams. 

There’s no denying that the open banking revolution is picking up speed, so expect significant changes in the financial landscape ahead.

What is open finance?

Key principles

While open banking has revolutionised how we interact with our bank accounts, open finance takes things even further.

Instead of just focusing on banking data, open finance allows the secure sharing of information across a wider range of financial services. This could include investment portfolios, insurance policies, loan details, and even pension information.

In essence, open finance takes a broader view, considering a person's entire financial picture and serves as a comprehensive framework that outlines how open banking principles should operate within the greater financial economy.

Accessing a broader range of financial data

By bringing all this data together, consumers and businesses gain a more complete view of their overall financial health. This unlocks new possibilities and opportunities, such as:

• Lenders can provide more personalised loan offers
• Wealth managers can deliver tailored investment strategies
• Insurance providers can price policies more accurately
• Individuals can take a unified approach to budgeting, saving, and achieving financial goals

What is embedded finance?

Integrating financial services into non-financial platforms

Embedded finance represents a major shift in how people interact with financial services. Instead of relying solely on traditional banking platforms, this approach involves seamlessly integrating banking capabilities right into the everyday digital tools and apps people already use.

An example of embedded finance would be a user being able to access banking features directly within a shopping app or a ridesharing platform. Parties can seamlessly engage with the financial services within the app, whether for exchange, payment or tipping.

Improving customer experience and accessibility

By embedding financial features into non-financial environments, companies can dramatically improve the customer experience. Consumers gain frictionless access to banking, lending, payments, and other services without having to leave the digital spaces they might find themselves in. This enhanced accessibility and convenience can lead to higher engagement and loyalty, further spurring the evolution of the digital financial landscape.

Real life examples of embedded finance applications

You can find examples of embedded finance all around you. Examples include e-commerce platforms that offer buy-now-pay-later options at checkout or ridesharing apps that allow in-app tipping and payouts and retail apps that provide integrated spend tracking and budgeting tools. The common thread is the ability to deliver financial services in a natural, contextual way that feels like a seamless part of the user's experience.

As embedded finance continues to grow, the boundaries between banking, commerce, and everyday digital life will keep blurring. This intersection promises to redefine how individuals and businesses manage their financial lives in the years ahead.

Comparing their approaches

The key differences between open banking, open finance, and embedded finance lie in their scope, technological needs, and regulatory factors.

Open banking focuses specifically on banking data and services, while open finance encompasses a wider range of financial information beyond just banking.

The technological requirements also vary, with open banking relying on secure APIs to share data, and embedded finance integrating financial capabilities directly into non-financial platforms.

Regulatory oversight is another distinguishing factor, with frameworks like PSD2 driving open banking, while open finance and embedded finance navigate a more diverse regulatory landscape.

Conclusion

In summary, open banking, open finance, and embedded finance represent a profound transformation in how we access and interact with financial services. Open banking unlocks banking data, open finance expands to broader financial information, and embedded finance seamlessly integrates financial capabilities into everyday digital experiences. 

As these trends continue to evolve, staying informed on the latest developments will be key for consumers and businesses to navigate the changing financial landscape and capitalise on the benefits these innovations can provide. Consider this movement as the future of finance unfolding before our eyes.

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The crypto market has entered a phase that veterans often call the "boring zone." It's a time when:

• Bitcoin's price seems stuck, fluctuating between $50,000 and $70,000 for months.
• Altcoins are in an even deeper slumber, with many down 50-80% from their peaks.
• Trading volumes on major exchanges have plummeted, dropping 30% from the last bull market's heights.

Sound familiar? It should. This lull is a recurring theme in the crypto market cycle, and historically, it's often the calm before the storm. It’s also a common attribute after a recent Bitcoin halving. 

Let's look at what happened after previous Bitcoin halvings:

• 2012 Halving: 92 days until new all-time high
• 2016 Halving: 291 days until new all-time high
• 2020 Halving: 216 days until new all-time high

For perspective, 28 July 2024 marks 100 days from the most recent halving, with 25 February 2025 marking the 300-day mark. 

The power of patient investing

Investing in cryptocurrencies over longer time horizons can be likened to early-stage venture investing, where patience could potentially lead to significant returns. While past performance doesn't guarantee future results, historical examples like Ethereum and Solana demonstrate this potential. 

Ethereum, launching at less than $1 in 2014, and Solana, starting below $1 in 2020, have since seen their values grow to over $3,000 and $140 respectively as of early 2024.

In the crypto space, what’s known as the HODL approach, emphasises the power of time and compound growth, similar to that of traditional asset classes. The idea is straightforward: if you've taken a position in a project you believe has strong fundamentals, maintaining that position through periods of high volatility could potentially lead to significant gains.

To illustrate this point further, in 2010, Bitcoin was worth less than $0.01. By April 2024, it had reached around $70,000. An investor who bought $100 worth of Bitcoin in 2010 and held it until 2024 would have seen their investment grow to millions of dollars.

Strategies for surviving (and thriving) in the "boring zone"

During quiet periods in crypto dive deeper into blockchain fundamentals, research promising projects, instead of anxiously checking prices or reacting to every piece of news, use this time productively.

Alternatively, for those with capital to invest, dollar-cost averaging (DCA) could be something to consider. A Vanguard study found that DCA outperformed lump-sum investing in 68% of cases during market downturns, highlighting its potential effectiveness in notoriously volatile markets.

Know with certainty that this "boring zone" is often temporary. Based on previous cycles, we might see a new Bitcoin all-time high in 30 to 150 days, and once Bitcoin breaks its previous record, top altcoin projects have historically seen gains of 200% to 1,000%.

By staying patient and disciplined during quiet periods, you can be prepared for potential opportunities that may arise as the crypto market evolves. Remember, while historical patterns offer insights, they don't guarantee future results, but these historical patterns are worth considering as you plan your strategy.

We get it, the waiting game is hard

Holding onto your crypto during boring market times can be tougher than you'd think. When prices aren't moving much, it's easy to get antsy or start doubting your choices. But keeping a cool head and being rational is key to long-term success.

First off, remember why you got into crypto in the first place. Was it the tech? The potential? Keep that big picture in mind. It helps to set realistic expectations too - crypto's known for its ups and downs, so flat periods are normal.

Try to limit how often you check prices. Constantly peeking at your portfolio can drive you nuts during slow times. Instead, focus on other parts of your life or dive deeper into learning about blockchain.

Connecting with other crypto fans can help too. Chat about ideas, not just prices. And don't forget to celebrate small wins - even if the market's quiet, projects are still developing and growing.

Stay patient, stay curious, and remember: in crypto, today's boredom could be tomorrow's excitement.

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Chances are you've come across the terms "on-chain" and "off-chain," but what exactly do they mean? Our article dives into the differences between on-chain and off-chain cryptocurrency transactions, helping you grasp these fundamental concepts. Let's delve into their definitions, importance, and critical differences.

Brief explanation of how blockchain technology works

Before we dive in, let's quickly cover the basics of blockchain technology. Blockchain, the underlying technology of cryptocurrencies, operates as a decentralised ledger that records transactions across a network of computers. Each cryptocurrency uses its own blockchain, storing the relevant information pertaining to the transactions that take place on the network.

When a transaction occurs, it's verified by network participants, added to a block, and then added to the chain. This process of data storage ensures transparency, as each transaction is publicly recorded once validated and cannot be altered retroactively. 

Additionally, the decentralised nature of blockchain enhances security by eliminating the need for a central authority to oversee transactions.

For a more detailed explanation, please see our What is Blockchain article. 

Difference between on-chain and off-chain transactions

In a nutshell, on-chain transactions occur directly on the blockchain network, where transaction data is recorded and confirmed by network parties. In contrast, off-chain transactions happen outside the blockchain network, typically facilitated by centralised intermediaries. 

On-chain transactions rely on blockchain technology for verification and record-keeping, ensuring transparency and security. These are conducted through Proof of Work (used by Bitcoin) or Proof of Stake (used by Ethereum) consensus mechanisms, ensuring trustless transactions. While secure, they often face scalability issues. 

Off-chain transactions, on the other hand, involve private databases or alternative payment channels to facilitate transactions faster and with lower fees. These are typically conducted on Layer-2 solutions, a secondary blockchain network that alleviates the strain on the main chain by managing a portion of its functionalities. This is used to increase scalability and efficiency. 

While on-chain transactions are inherently decentralised and immutable, off-chain transactions may offer greater scalability and privacy, albeit with some trade-offs in terms of trust and security.

Transaction speed and fees

When it comes to transaction speeds, it's worth noting that these typically vary between on-chain and off-chain transactions. On-chain transactions, directly processed on the blockchain, can be slower due to network congestion and verification processes. 

In contrast, off-chain transactions, facilitated outside the main blockchain, often offer faster processing times, especially in payment channels or layer 2 solutions. 

However, on-chain transactions typically incur higher fees due to network congestion and the computational resources required for verification. Off-chain transactions, leveraging centralised intermediaries or sidechains, may have lower fees but could compromise decentralisation and security. 

The trade-off between speed and fees depends on the specific use case and desired level of decentralisation a user desires. 

Security considerations to consider

On-chain transactions, being directly processed on the blockchain, benefit from inherent decentralisation and immutability, enhancing security. However, they are susceptible to network attacks and vulnerabilities in smart contracts. 

Off-chain transactions, while offering scalability and speed, often rely on trusted intermediaries, raising concerns about centralization and potential breaches. Despite this, off-chain solutions implement security measures such as encryption and multi-signature authentication to mitigate risks. 

Ultimately, the choice between on-chain and off-chain transactions depends on balancing security considerations with scalability and efficiency requirements in the context of specific use cases.

On-chain and off-chain transactions in terms of cryptocurrency wallets

When it comes to understanding how crypto wallets work for on-chain and off-chain transactions, it's essential to grasp their role in storing and facilitating cryptocurrency transactions. For on-chain transactions, wallets interact directly with the blockchain, securely managing digital assets on the network, while off-chain transactions may require specialised wallets that enable interactions outside the main blockchain, offering features like payment channels or compatibility with layer 2 solutions.

Choosing the right wallet depends on factors like security, compatibility, and functionality for each transaction type.

Conclusion 

In summary, it's crucial to understand the key differences between on-chain and off-chain transactions when engaging with the crypto ecosystem. 

While on-chain transactions offer decentralisation and immutability, these can be slower and costlier. Off-chain transactions, on the other hand, provide speed and scalability but may compromise security. 

Choosing the right method depends on balancing factors like security, cost, and speed. Thus, it's essential to consider these aspects to optimise cryptocurrency transactions and ensure they meet specific needs in the ever-evolving blockchain landscape.

In the world of blockchain and cryptocurrencies, tokens play a crucial role. The two main categories of tokens are utility tokens and security tokens, and understanding their differences is essential for anyone involved in the industry, from investors to developers to regulators.

What are utility tokens?

Utility tokens are digital assets designed to provide access to a specific product or service within a blockchain ecosystem. They serve a functional purpose rather than representing ownership or investment in a company.

Key characteristics of utility tokens include:

1. Functionality: Users can exchange these tokens for goods or services within the platform.
2. No ownership rights: Holders don't have claim to company assets or profits.
3. Network access: They often grant access to specific features or benefits of a platform.
4. Value fluctuation: Their worth is tied to the demand for the associated product or service.

Examples of utility tokens include Chainlink (LINK), used to compensate Chainlink node operators for fetching data from smart contracts, and Basic Attention Token (BAT), used within the Brave browser ecosystem.

What are security tokens?

Security tokens, on the other hand, represent ownership in an asset or enterprise. They are subject to federal securities regulations and are treated similarly to traditional financial securities.

Key characteristics of security tokens include:

1. Ownership representation: They signify a stake in a company or asset.
2. Expectation of profit: Holders typically anticipate returns from the efforts of others.
3. Regulatory compliance: They must adhere to securities laws and regulations.
4. Voting rights: May grant governance privileges to token holders.

Examples of security tokens include tZERO, representing ownership in the tZERO trading platform, and Blockchain Capital (BCAP), which represents a stake in a venture capital fund.

Key differences between utility tokens and security tokens

1. Purpose:some text
   • Utility tokens: Provide access to products or services.
   • Security tokens: Represent ownership or investment in an asset or company.
2. Regulatory treatment:some text
   • Utility tokens: Generally less regulated, though still subject to certain rules.
   • Security tokens: Heavily regulated and must comply with securities laws.
3. Value proposition:some text
   • Utility tokens: Derive value from their usefulness within an ecosystem.
   • Security tokens: Value is tied to the performance of the underlying asset or company.
4. Investor rights:some text
   • Utility tokens: Typically don't offer ownership or voting rights.
   • Security tokens: Often include ownership, profit-sharing, or voting rights.
5. Tradability:some text
   • Utility tokens: Can be traded on most cryptocurrency exchanges.
   • Security tokens: Often restricted to specialised platforms due to regulatory requirements.
6. Issuance process:some text
   • Utility tokens: Often distributed through Initial Coin Offerings (ICOs).
   • Security tokens: Issued through Security Token Offerings (STOs), which involve stricter compliance measures.

For investors, understanding these differences is key to assessing risks and evaluating potential returns on their investments while for developers and regulators, mislabeling a token can lead to serious legal problems (and potential penalties from regulatory bodies). 

As the blockchain industry continues to evolve, the line between utility and security tokens may become less clear-cut. As some projects are already exploring hybrid models that combine elements of both token types, regulatory frameworks are having to adapt quickly to address the associated challenges.

In essence, utility tokens provide access to specific products or services, while security tokens represent ownership and are subject to stricter regulations. 

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A crypto wallet address is the blockchain equivalent of a bank account, from where users can send and receive cryptocurrencies or other digital assets. Compliant with specific blockchain networks (i.e. Bitcoin wallets hold Bitcoin while Ethereum wallets hold Ethereum), these wallets not only “store” your assets, but also facilitate all the transactions.

What is a wallet address?

A wallet address is typically a long string of alphanumeric characters, usually between 26 and 35 characters long. For example, a Bitcoin address might look like this: 1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2. Each blockchain network (e.g. Bitcoin, Ethereum) has its own format of addresses.

Every crypto transaction gets stored on the blockchain, meaning that anyone can see it. If you know someone's wallet address, you can look up all the transactions they've ever made, but while you can see what's happening, you can't tell who's behind the transactions. Wallet addresses don't have names attached to them, so people can use crypto without everyone knowing who they are. 

Wallet addresses role in the blockchain ecosystem

Wallet addresses are the backbone of blockchain transactions. They work like digital IDs, letting you send and receive crypto without sharing personal info. 

The blockchain network uses these addresses to keep track of how much crypto everyone has, so when you make a transaction, your address shows who's sending and who's getting the crypto, using wallet addresses and not personal information. 

In some networks, addresses can even represent automated programs called smart contracts. The cool thing about wallet addresses is that they let anyone see and verify transactions, but they keep your real identity private.

Safety tips for keeping your crypto safe

1. Double-check addresses

Always verify the recipient's address before sending cryptocurrency. Even a small error can result in permanent loss of funds.

2. Never share your private keys

While addresses (also referred to as public keys) are designed for public use, sharing your private keys is like sharing your pin code. 

3. Beware of phishing

Don't trust addresses received through unsolicited emails or messages. Always verify address information through official channels when making payments.

4. Use hardware wallets

For large amounts, consider using hardware wallets that generate and store addresses offline.

5. Understand address formats

Be aware that different cryptocurrencies use different address formats. Sending funds to the wrong type of address can result in lost funds.

6. Use QR codes

When possible, scan a QR code to reduce the risk of typos.

7. Monitor your addresses

Regularly check the activity associated with your wallets to detect any unauthorised transactions.

Whether you’re an active trader or have bought Bitcoin once, it's important to understand wallet addresses - they're key for sending and receiving crypto. While they help keep you somewhat anonymous, you still need to be cautious to keep your crypto safe.

Users with a Tap account automatically gain access to a unique crypto wallet for all the currencies supported. These wallets can be managed from one secure location, making it not only convenient but also accessible at all times, leaving you in control.

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Looking to boost your profits per hour in the Hamster-based game taking the gaming and crypto world by storm? Here’s all the information you need to know about combo cards and how to maximise your in-game coin stash.

What is Hamster Kombat?

Hamster Kombat is a Telegram-based game where users take on the role of a hamster CEO managing a virtual crypto exchange. The game's core mechanics involve tapping to earn initial coins, purchasing upgrade cards to increase hourly revenue, completing tasks for rewards, and inviting friends to earn bonus coins. 

The main objective is to maximise their profit per hour and climb the player rankings. While the game starts with active tapping, success relies on developing passive income streams and strategic reinvestment of earned coins. Hamster Kombat utilises a "tapper" game mechanic common in mobile games, where repeated screen taps generate virtual currency. However, it incorporates elements of resource management and social networking to add depth to the gameplay.

What are the Hamster Kombat Combo Cards?

Combo Cards are a key gameplay mechanic designed to reward players with in-game coins and bonuses. These Combo Cards are part of the game's daily challenges, where players must discover and select the correct combination of three cards from different categories such as "Specials," "PR & Team," or "Legal" to unlock substantial rewards. Each day at noon GMT, a new set of cards is revealed, and players who correctly identify and input the combo can earn up to 5 million coins.

The game operates on a tap-to-earn basis, where players initially generate income by tapping but can significantly enhance their earnings through the strategic use of Combo Cards. The correct combination not only boosts daily coin earnings but also contributes to the overall development of the player's in-game crypto exchange, allowing for higher passive income over time.

To maximise benefits from the Combo Cards, it's important to regularly check for the daily updates and solve the combos as soon as they are released. Engaging in related tasks, such as solving daily ciphers, watching Youtube videos from the creators or inviting friends, can also increase your earnings within the game​

How to find the right card combination

Catching the right Combo Cards in Hamster Kombat can feel like searching for a needle in a haystack. You might burn through all your hard-earned coins and still miss the mark. Even if you do stumble upon the correct cards, there's no guarantee you'll have enough coins left to purchase them… Leaving many to wonder if the potential reward of 5 million coins is worth the risk.

Of course, the game doesn’t hand out the day’s winning combo on a silver platter.

This is where a strong community comes into play. The explosive popularity of Hamster Kombat has led to the rise of numerous social media accounts dedicated to sharing the daily combo cards, saving millions of players from unnecessary frustration. 

Whether it’s a reliable X account or an active Telegram channel, there are plenty of resources out there. However, always be cautious, fraudulent accounts do exist, so it's essential to verify your sources before relying on them.

What are daily ciphers?

In Hamster Kombat, daily ciphers are puzzles that players can solve to earn additional in-game coins, typically up to 1 million coins each day. These ciphers involve decoding a word or phrase using a Morse code provided by the game. Every day, a new cipher is released at a specific time, and players must decode it to uncover the correct word or sequence to enter into the game.

Successfully solving the daily cipher not only rewards players with coins but also adds an extra layer of engagement, encouraging regular participation. The puzzles are often related to the broader themes and events within the game, making them an integral part of the daily routine for dedicated players.

While the game itself does not provide direct hints, many players turn to community resources and social media channels where solutions are often shared to help others crack the code and claim their rewards​

To kick off the process, tap the "Earn per tap" button on the main screen three times. This will change the background behind your hamster icon to red, and a new "Daily Cipher" box will pop up beneath the earnings counter.

Best of luck out there

Mastering Hamster Kombat’s Combo Cards and daily ciphers is essential for maximising your in-game coin stash and advancing your hamster-run crypto exchange. By strategically engaging with these mechanics and tapping into community resources, you can boost your earnings, climb the leaderboards, and enjoy a more rewarding gameplay experience. Stay alert, solve puzzles, and always verify sources for the best results.

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The crypto and NFT gaming world is more active than ever, with new game releases, frequent token airdrops, and ongoing developments keeping the space buzzing. And while the Hamster Kombat game is taking the world by storm, many are wondering: is there real money to be made here? As we do a deep dive into the project, we uncover whether people can really earn money from playing this hamster-centric, Telegram-based game. Let’s start at the very beginning. 

What is Hamster Kombat?

In a nutshell, Hamster Kombat is a quirky Telegram-based game that blends crypto concepts with idle gaming mechanics. Players act as the Golden Hamster CEO managing a virtual cryptocurrency exchange, tapping to earn coins and making strategic decisions to grow their business. 

The game features upgrades, daily tasks, and resource management, all with a fun and addictive interface. While it hints at potential future cryptocurrency rewards, the primary focus is on engaging gameplay and building a thriving digital exchange. 

Whether you love it or hate it, there’s no denying that Hamster Kombat offers a playful, low-stakes introduction to crypto-themed gaming.

So, is there potential to make money?

The aim of the game is to build up your in-game coin balance, however, the project creators have promised that an airdrop is in the pipeline. Similar to a recent tap-to-earn game, NOTcoin, the Hamster Kombat project promises to reward its players through an airdrop event based on their active participation in the game. 

While the allocation metrics remain fuzzy and the coin in question, HMSTR, is yet to be created, there is still a large amount of hype surrounding the game and the potential financial incentives. So much so that big exchanges in the crypto market are already pre-listing the coin. 

What we know for sure

The creators of the project haven’t left us totally in the dark, there are a few factors we know for certain:

Build your coin balance

As with most tap-to-earn games, players accumulate their in-game coins by completing small tasks. Hamster Kombat is no different, encouraging players to earn more coins through various avenues.

It’s all about the passive income

Hamster Kombat’s main gameplay involves tapping the screen, but to really progress, use the “Mine” button to purchase upgrades for your exchange. Investing in markets, PR, team, legal enhancements, and special cards will generate passive income, allowing you to earn coins even when you're not actively playing.

Work on your profit per hour

On that note, your profit per hour rating is arguably the most significant rating when it comes to airdrop allocation. This is based on a very uncryptic tweet from the creators:

Embed: https://x.com/hamster_kombat/status/1803025528909156356?lang=en

To work on increasing your profit per hour, see our piece on ways to maximise this. It covers everything from what you need to know about card upgrades to daily combos and more. 

Participation is key

While we know the main factor affecting a player’s HMSTR allocation is their total profit per hour, however, the following factors, taken from the project’s whitepaper also play a role:

● Overall game cycle: did you just download it and forget about it or are you an

active player?

● Community interaction and activity

● Friends, or, rather, the quality of the friends you invited: did you bring in bots?

Or are these real friends you interact and play with daily?

● Achievements

● Wallet integration

● Reputation

What we know about $HMSTR

The coin behind the project, HMSTR, might not be launched yet, but here is what we do know about it.

HMSTR will be created on the TON network, standing for The Open Network, created by the same team that brought us Telegram, the platform on which the game is based.

The popular game, which recently surpassed 300 million players, has postponed its planned token launch due to ongoing work on the large-scale airdrop logistics. 

While the token generation event and airdrop are now listed as "upcoming" on the game's roadmap, the developers have assured fans they are actively working to bring these features to fruition.

In the meantime, the token has been approved for premarket trading by the following platforms: OKX, Bitget, Gate.io, and KuCoin. 

Keep an eye on our blog for further updates. 

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So you’ve entered the world of Hamster Kombat and want to know how to get your furry paws ahead. You’ve come to the right place. In this guide, we'll explore strategies to maximise your profit per hour.

Whether you're a seasoned player or just starting your rodent-run empire experience, these tips will help you optimise your tapping technique, upgrade wisely, and manage your virtual resources like a pro. 

What does Profit per Hour mean in Hamster Kombat?

Imagine your Hamster Kombat exchange as a bustling rodent-run factory. Profit Per Hour (PPH) is the automated assembly line, churning out tokens even when you're not supervising. It's the game's way of rewarding you for smart investments and strategic planning.

What we know:

• PPH is passive income, generating tokens around the clock.
• Unlike with tapping or tasks, PPH is hands-free income - no constant attention required.
• These earnings flow directly into your main coin balance.
• This token balance can be used to upgrade cards or buy new cards.

PPH is the backbone of your hamster empire, ensuring growth even when you're away from the wheel.

10 ways to maximise your Hamster Kombat profit per hour

Card Upgrades

Look for cards that give you the most bang for your buck in terms of Profit Per Hour (PPH). Here are some smart picks at a reasonable price:

• "License Europe" is a quick win at Level 1. For just 5000 tokens, you'll earn an extra 720 PPH. You'll break even in about 6 to 7 login cycles (each cycle being 3 hours).
• Want to go bigger? The "Consensus Piranha Pass" at Level 2 is a powerhouse. It'll cost you 55,125 tokens but rewards you with a 2,030 PPH boost.
• "License Bangladesh" and "License India" might also surprise you with their unique PPH offerings, check them out too. 

Avoid cards that give you less than 1000 PPH if they cost more than 20,000 tokens. These rarely give you good value, the only exception being if you need them for a daily combo. 

Use Boosters

Boosters are key for fast progress in Hamster Kombat. The 'Multitap' booster increases coins per tap, while 'Energy Limit' boosts your energy reserves for more taps. Daily boosters refresh your energy every hour, so use them strategically to enhance your coin generation.

Consistency is key

Check-in regularly to grab limited-time bonuses and finish key daily challenges. You'll also keep up with important game changes, special events, and possible arbitrage opportunities. Consistently logging in is the secret to boosting your PPH over time.

Crack the Daily Combo

Each day features a "daily combo" with specific cards. Upgrading these cards grants a bonus of five million coins. Check Hamster Kombat’s online communities for the daily combo details to optimise your upgrades.

Solve the Daily Cipher

The daily cipher, now visible on the main Exchange screen, rewards one million coins. Enter the password in Morse code, with quick taps for dots and long taps for dashes. Timing is crucial, so solve the problem quickly.

Manage your tokens effectively

Handle your well-deserved coins like a savvy investor. Focus on smart upgrades that give you the most bang for your buck, and steer clear of wasteful splurges that might eat into your future profits.

Stay in the Game

Bear in mind that this isn't a hands-off money-maker market. Always be on the lookout for lucrative card deals, use your boosts wisely, and actively participate in the game to make the most of it.

Top the League Levels

League levels, from 'Bronze' to 'Creator,' impact your 'Multitap' and 'Energy Limit' booster levels, enhancing your active tapping gains. Reaching higher levels, like 'Creator,' requires significant coin balances, currently over 18 billion.

Join the Community

Connect with Hamster Kombat’s vibrant community on Telegram and social media. Engaging with other players can provide tips, updates, and insights, including info on time-sensitive seasonal cards that can boost your hourly profits. Also, be sure to invite your friends and family and reap the rewards.

Watch Hamster YouTube

Hamster Kombat offers rewards for watching their YouTube videos, giving 100,000 coins per view. Stay updated with their content, interact with the videos, and wait an hour for the coins to be credited.

That’s all the information you need to get ahead in this wildly addictive game. Now it’s time to get that hamster wheel turning.

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The game currently sending the blockchain gaming world into overdrive, Hamster Kombat, recently announced a delay in the launch of their highly anticipated airdrop. Here’s everything we know about the event from “one of the fastest-growing projects in internet history.”

What is Hamster Kombat?

If you’re new to the concept, let’s quickly get you up to speed. Hamster Kombat is a Telegram-based game where players take on the role of a hamster CEO running a crypto exchange. It combines simple tapping with some strategic elements and plenty of incentive to keep logging in. The main draw for players, however, is the upcoming token airdrop, which serves as a major incentive for all the tapping and gameplay involved.

The hype is also driven by the recent success of Notcoin, which launched its NOT token on The Open Network (TON), the same blockchain Hamster Kombat will use for its upcoming token. Notcoin's NOT token has become one of the year's biggest gaming token launches, reaching a peak market cap of over $2 billion, after distributing over 80 billion NOT tokens, worth about $1 billion at the time. 

This success has fueled excitement for Hamster Kombat and other Telegram-based games, contributing to Toncoin (TON) rising into the top 10 cryptocurrencies by market cap.

What is HMSTR?

HMSTR is the token behind Hamster Kombat, the promised coin that is yet to be launched. Previously, communications from the anonymous creators stated July 2024 as the token generation event (TGE), however, this has been pushed out. 

Despite the coin not even having been created yet, OKX, Bitget, Gate.io, and KuCoin have already announced their support for pre-market trading of the Hamster Kombat token.

How many tokens can a user get? 

While few details have been revealed regarding the specifics of how the airdrop token allocation will play out, the team has confirmed that it will work differently from the NOT airdrop, where users were allocated 1 NOT token for every 1,000 tokens they held. 

Hamster Kombat’s whitepaper has stated that 60% of the coin’s supply will be allocated to players, saying only that it will work on a metric system that measures a users’ profit per hour instead of their actual in-game coin collection. 

The whitepaper also outlined the following factors for the airdrop allocations: 

● Overall game cycle: did you just download it and forget about it or are you an

active player?

● Community interaction and activity

● Friends, or, rather, the quality of the friends you invited: did you bring in bots?

Or are these real friends you interact and play with daily?

● Achievements

● Wallet integration

● Reputation

How to join the Hamster Kombat airdrop

To qualify for the airdrop, players must complete certain tasks within the game. In order to do this, you will need to join the game (see details below), link your TON wallet, and then actively participate in order to build up your profit per hour rating within the game. Remember: profit per hour over coin balance.

How to play Hamster Kombat

To start playing Hamster Kombat, follow these steps:

1. Join Telegram
   Download the Telegram app and set up an account using your phone number and username.
2. Find the Official Hamster Kombat Bot
   Launch Telegram and search for the Hamster Kombat bot. It will guide you through the setup process and teach you the basics of the game, offering a user-friendly interface for newcomers.

How to connect your TON wallet for the airdrop

1. Open the Hamster Kombat Bot
   Launch the Hamster Kombat bot in your Telegram app.
2. Access the Airdrop Tab
   Select the airdrop tab located at the bottom right corner of the game screen.
3. Complete the First Task
   Choose the first task, which will prompt you to link your TON wallet.

Why is the Hamster Kombat airdrop delayed?

The team behind the game announced on X on 31 July that the initial date for the cryptocurrency token launch has been moved out due to the “technically complex” task of organising a successful airdrop event. They added, “We're not setting specific dates for one simple reason: it's impossible to predict the exact timeline for implementing this solution.”

Keep an eye on our blog for further updates. 

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Hamster Kombat, Telegram's latest gaming sensation, is an innovative game that casts you as a hamster CEO running a crypto exchange. The core gameplay revolves around earning coins by tapping your screen, then investing these earnings to grow your hamster-run exchange.

Players can upgrade their workforce, unlock new features, and access limited-time seasonal upgrades, with each improvement boosting your exchange's hourly profits, creating a cycle of growth and investment.

The game encourages daily engagement through tasks like rewards, ciphers, and combos. These activities provide extra coins, accelerating your exchange's development. As you progress, passive income from upgrades eventually outpaces the initial tap-to-earn mechanic, shifting the focus to strategic resource management.

This clever design creates an addictive loop of earning, upgrading, and expanding, all wrapped in a quirky hamster-themed package. The game's blend of simple mechanics and deep strategy keeps players coming back to build their virtual crypto empire. 

What is the Hamster Kombat hype about?

While primarily entertainment, Hamster Kombat's integration with The Open Network (TON) adds a real-world element, with plans for a token launch and airdrop. 

The recently updated whitepaper outlines HMSTR token's economics, allocating 60% of the total supply to player airdrops, hinting that it's a for-the-people platform. It also states that the game aims to onboard 1,000,000,000 Web2 users into Web3, an ambition that loudly states "we're more than just a game."

This unique mix of gameplay and potential cryptocurrency rewards has made Hamster Kombat a standout in the evolving landscape of blockchain gaming. Not to mention a viral sensation. 

How does Hamster Kombat work?

This innovative game simulates the experience of running a digital currency exchange, challenging players to make strategic decisions that will propel their virtual business to new heights.

At its core, Hamster Kombat is about growth and community. Players create their profiles, customising them to their preferences, and engage in various activities to boost their exchange's performance. The game emphasises collaboration over competition, encouraging players to build connections and grow alongside their “squad”.

Daily tasks form the backbone of the gameplay. Players increase their coin balance, tackle daily combos and ciphers, and collect rewards to maximise passive income. This system allows for flexible engagement - players can choose to be hands-on or adopt a more laid-back approach, focusing on key decisions that multiply their earnings.

The game's referral system adds another layer of interaction. By inviting family and friends, players not only boost their revenue but also create a network of fellow hamster CEOs, making the virtual crypto world feel more connected and dynamic. According to the project's whitepaper, “99% of players are invited by their friends.” 

Hamster Kombat isn't just about profit - it's a playful exploration of decision-making in the high-stakes world of cryptocurrency.

How much is a Hamster Coin worth?

At the time of writing, the Hamster Kombat coin, HMSTR, has not yet been created and is not publicly traded. 

Who created Hamster Kombat?

Despite attracting considerable attention and building a large community, the makers of Hamster Kombat choose to stay anonymous. 

Can we earn money from Hamster Kombat? 

While players can earn the in-game currency, the promise is that users will earn HMSTR through the project’s eagerly awaited airdrop, set to take place in Q3 2024. This airdrop will distribute real tokens based on players' achievements, rewarding active participants and boosting engagement. 

To fully participate, players should link their TON wallets in the game, and of course, get playing. To find out more about whether you can really earn money from the game, see our full article here. 

How to play Hamster Kombat

To get started playing Hamster Kombat, users will need to do the following:

• 1. Join Telegram

Install the Telegram app and create an account with your phone number and username.

• 2. Locate the official Hamster Kombat bot

Open Telegram and search for the Hamster Kombat bot. It will help you with the setup and introduce you to the game’s basics, featuring an easy-to-use interface for beginners.

How to maximise your profits per hour on Hamster Kombat

Discover how to skyrocket your profits per hour in Hamster Kombat with our comprehensive guide. From strategic upgrades to mastering the daily card combos, learn how to optimise your tapping and passive income strategies to outpace the competition. 

Curious to boost your in-game earnings and climb the leaderboards? Dive into the full article for exclusive tips and tricks.

HMSTR airdrop tips

Dive into the world of Hamster Kombat and discover everything you need to know about its highly anticipated airdrop, now delayed to perfect its launch. As the crypto gaming sphere buzzes with activity, find out how Hamster Kombat is setting the stage with its innovative token strategies and what makes its upcoming HMSTR token so compelling. For full details on how to participate and why this airdrop is creating waves, read the complete article.

Conclusion

Hamster Kombat offers a playful introduction to crypto-themed games through Telegram's mini-app platform. While it's an accessible way to explore digital currency concepts without real financial risk, it's best to focus on enjoying the strategic gameplay rather than speculating on potential airdrops and future gains.

The game's longevity and any future token value will depend on the ongoing development and the team's vision for Hamster Kombat after the planned HMSTR token launch. For now, it's a fun resource management game with a crypto twist, perfect for those curious about blockchain gaming but not ready to invest real money.

Tap (XTP) is a pioneering financial technology platform established in 2019, revolutionising finance by merging traditional banking with cryptocurrency management. It facilitates instant, free money transfers within its network, incentivising its community and simplifying bill splitting and expense sharing. Tap aims to democratise finance and empower individuals with comprehensive financial tools, offering intuitive interfaces, powerful features, and robust security measures.

What is Tap (XTP)?

Managing money across different platforms and currencies can be a daunting task in today's digital world. Tap (XTP) emerges as a groundbreaking fintech solution, bridging the gap between traditional finance and cryptocurrencies. Established in 2019, this innovative app is on a mission to democratise finance and empower users with comprehensive financial tools.

What sets Tap apart is its ability to provide an all-in-one ecosystem where you can send and receive money or crypto instantly fee-free within its Tap2Tap network , pay bills, and invest in a range of cryptocurrencies. Tap also offers an easy on-ramp to convert fiat into digital assets and off-ramp services to cash out using low fees. No more juggling multiple apps or fretting over international fees when traveling abroad.

The XTP token, Tap's native ERC-20 cryptocurrency, is the key that unlocks the full potential of this platform. Use XTP to access premium features like up to 8% cashback on spending, earn rewards, and gain entry to exclusive services within the Tap ecosystem. With its integrated Mastercard, you can effortlessly spend your funds and earn cashback at millions of merchants globally.

Powered by robust security measures, regulatory compliance, and a user-friendly interface, Tap offers a secure and transparent financial journey tailored for the modern consumer.

What is Tap - Introducing Tap's Functionality

Tap is a comprehensive financial platform that seamlessly combines traditional money accounts and cryptocurrency management, providing users with a centralised platform for all their monetary transactions. At its core is a mobile app that serves as the primary interface for accessing Tap's services.  

Before gaining access, users must undergo a verification process that involves providing personal information to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Once verified, the user-friendly app allows them to purchase, sell, and securely store a diverse range of cryptocurrencies – currently close to 50 different options.

The app simplifies the process of acquiring cryptocurrencies by accepting various payment methods, including debit cards and bank transfers. Users can also transfer cryptocurrencies from their external wallets into their Tap account or sell their holdings and transfer fiat currency directly to their bank accounts. Alternatively, users can also can send cryptocurrencies to other wallets or exchanges.  Tap's wallet system is designed with robust security measures and encryption capabilities, ensuring the safekeeping of users' assets.

For seamless spending of cryptocurrencies, users can order a Tap Mastercard – available in both physical and virtual forms – directly through the app. To use the card for purchases, they can preload it directly from their Tap wallet. The card also enables cash withdrawals from ATMs globally and offers generous cashback of up to 8%, depending on the user's tier. Additionally, the card provides excellent FX conversion rates, enabling its users to spend worldwide worry-free.

What makes Tap Unique?

Forget juggling multiple apps and accounts. Tap seamlessly blends traditional money accounts with cutting-edge crypto, all in one intuitive platform. Instantly convert your digital assets to cash for everyday use or grow your portfolio with a wide range of supported cryptocurrencies. It's the best of both worlds.

What truly sets Tap apart is its ability to instantly convert cryptocurrencies to fiat currency with its on-off-ramp feature. No more waiting around or dealing with convoluted processes. This feature  comes in handy for users looking to incorporate cryptocurrencies into their everyday transactions, as it removes the usual delay associated with crypto-to-fiat conversions.

Tap's supports a wide range of cryptocurrencies provides users with the flexibility to store, manage, and trade a diverse portfolio all from one platform. This broad support makes it a go-to app for cryptocurrency enthusiasts.

What is the Tap Ecosystem?

The Tap ecosystem embodies a comprehensive suite of financial services and functionalities aimed at delivering a seamless interface for overseeing both fiat and cryptocurrency holdings.

Here is a list of the different functionalities it offers:

Multi-Currency Wallet:

Tap offers a secure and encrypted digital wallet that supports over 50 different cryptocurrencies. This wallet allows users to store, manage, and easily switch between various crypto and fiat currencies, catering to both investment and everyday transaction needs.

Cryptocurrency Exchange:

Users can trade a broad and diverse range of cryptocurrencies. Unlike other platforms with limited pairs, Tap allows users to exchange any asset for another without constraints. This hassle-free process ensures flexibility and ease of use. Additionally, the trading platform prioritises speed and efficiency, delivering a dependable and user-friendly experience to all users.

Tap Prepaid Mastercard:

A pivotal component of the Tap ecosystem is its prepaid Mastercard, empowering users to spend and withdraw money worldwide.

Cash Back:

A standout feature of Tap's offerings is its cash back program, providing rewards to all users who use their card. By upgrading, users can unlock even greater benefits, earning up to 8% cash back on their Tap card purchases.

Instant Money Transfers:

Tap enables quick and free money transfers worldwide through its Tap2Tap network, allowing users to send crypto to other Tap users within the app without incurring additional charges.

Fiat Currency Support:

Alongside its crypto services, Tap also supports various fiat currencies, allowing users to manage traditional currency alongside their digital assets.

Investment and Trading Tools:

Tap provides users with a range of tools and features, including a smart trading router, market newsletter, and real-time price tracking.

Smart Trading Router:

The top-of-the-line smart router locates the best execution location by scanning multiple exchanges and liquidity providers in real-time, to find the best available price available price it can locate for their purchases.

What is the XTP Token?

The XTP token serves multiple purposes within the Tap platform. Primarily, it facilitates trading by reducing trading fees and enabling users to access various premium plans, each offering a wide range of benefits. Users can also exchange XTP for numerous cryptocurrencies listed on the platform, thanks to the availability of multiple XTP trading pairs. This flexibility allows users to diversify their digital asset portfolios conveniently.

By utilising XTP tokens, users can upgrade to premium plans that offer perks such as up to 8% cashback, reduced trading fees, decreased FX fees, higher card spending limits, exclusive market newsletters, and premium support within the app. Furthermore, Tap facilitates quick and free transfers of XTP tokens between Tap accounts, providing a seamless solution for global asset transfers. This functionality is particularly valuable for individuals seeking efficient and cost-effective methods to move funds across borders.

Tap's well-regulated and secure app ensures a smooth trading experience, catering to the unique needs of each user. Additionally, the platform provides a secure wallet for the safe storage of XTP tokens, offering peace of mind and streamlined asset management for users.
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In today's interconnected global economy, the ability to manage finances across multiple currencies and cryptocurrencies is becoming increasingly important. New financial technologies are emerging to address this need, offering tools that simplify cross-border transactions and bridge the gap between traditional and digital currencies.

Streamlined Euro Payments

The Single Euro Payments Area (SEPA) system has revolutionised euro transactions across Europe. This standardised framework allows for efficient and cost-effective transfers between participating countries. Tap leverages this system to provide users with an exceptionally easy and affordable way to send EUR. With Tap, transferring euros becomes as simple as a few taps on your smartphone, making cross-border transactions more accessible than ever.

GBP Transactions with Faster Payments Service 

In the UK, the Faster Payments Service (FPS) has transformed the speed of domestic transactions. Tap integrates this system to offer users a remarkably simple, fast, and cheap method for sending GBP. Whether you're splitting a bill with friends or paying a supplier, Tap's FPS integration ensures your pounds are transferred almost instantly, 24/7, with minimal associated costs.

The Power of Stablecoins for International Transfers

Stablecoins have emerged as a crucial bridge between traditional currencies and the volatile world of cryptocurrencies. Tap offers the convenient option of converting Fiat or cryptocurrencies to stablecoins, providing a cost-effective and lightning-fast alternative to traditional SWIFT transfers for international payments. This feature is particularly valuable for those looking to avoid the delays and high fees often associated with cross-border bank transfers.

John, a London-based entrepreneur, shares her experience: “For urgent payments to my international suppliers, Tap's stablecoin transfer feature is an absolute godsend. I can swiftly convert my pounds to USDT and send payments anytime, with the assurance that they'll be processed almost instantly. It's made dealing with international payments an absolute doddle. Brilliant stuff, really.”

Exploring Cryptocurrency Options

For users who are comfortable with cryptocurrencies, Tap offers another layer of flexibility. The platform supports a wide range of cryptocurrencies, allowing users to send and receive various digital assets if that's their preferred method of transaction. This feature caters to crypto enthusiasts and those looking to leverage the unique benefits of blockchain-based transfers.

Integrating Traditional and Digital Finance

As the lines between traditional and digital finance continue to blur, Tap stands out by seamlessly handling both. This integrated solution offers several advantages:

1. Simplified management of diverse assets in one place

2. Easier conversion between traditional currencies and cryptocurrencies

3. Potential for reduced fees through the use of blockchain technology

4. Enhanced financial flexibility for global transactions

The Tap Network: Free Transactions Within the Ecosystem

One of Tap's most compelling features is its in-app Tap2Tap Network. This innovative system allows users to send both cryptocurrencies and fiat currencies to other Tap users in the app completely free of charge. By facilitating fee-free transactions within its ecosystem, Tap not only saves users money but also encourages a more interconnected financial community.

Whether you're sending euros across Europe, pounds within the UK, stablecoins for international transfers, or cryptocurrencies to fellow enthusiasts, Tap provides a comprehensive solution that combines speed, simplicity, and cost-effectiveness. The platform's integration of traditional banking systems, stablecoin functionality, and cryptocurrency support, all united under the fee-free Tap2Tap Network, represents a significant step forward in accessible, flexible global finance.

To experience the benefits of integrated currency and cryptocurrency management firsthand, consider exploring Tap. This innovative financial app combines support for SEPA and FPS transactions with a wide range of cryptocurrency options, including stablecoins and popular tokens. Visit www.withtap.com to learn more about how you can optimise your financial transactions across borders and digital assets, and start enjoying fee-free transfers within the Tap2Tap Network today.
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If you’re in the process of applying for a passport chances are strong that you already know the importance of needing one. Whether you’re in a terrible hurry because you forgot to check the expiry date before booking your trip or maybe lost your passport ahead of an urgent cross-border meeting, we’ve got you covered. The UK offers a service that allows applicants to fast-track their application. 

Find everything you need to know about the process below, including the fees involved. And why might we, a fintech platform, be informing you about fast-tracking passports? Because we’re in the business of travel. With our world-friendly app that allows users to seamlessly switch between currencies as they swipe their cards around the world, we understand not every process is this simple. Now that we’ve covered that, let’s get into why you’re really here. 

How to fast-track your passport application

Getting a passport in the UK can sometimes be a lengthy process, but luckily there are options available to speed things up. Normally, it can take up to 10 weeks to receive a new passport through the standard application process. While it may be quicker in some cases, it's always best to be prepared for a wait.

The one-week fast-track option

The first option is the 1 week Fast Track service. This service allows you to renew an adult or child passport, replace a lost or stolen passport, or update your details. You can book an appointment for this service up to 3 weeks in advance and will need a debit or credit card.

How to apply

To apply for the 1 week Fast Track service, follow these steps:

1. Visit your local Post Office branch to obtain an application form (these are not available online).

2. Book your fast-track passport appointment online.

3. Pay the fee.

4. Take your completed application form and the required supporting documents to your appointment. There is a booklet accompanying the application form that provides a list of the necessary documents.

5. Once you have completed these steps, your new passport will be delivered to your home address within a week of your appointment. It's important to note that someone needs to be present to sign for the passport upon delivery.

The costs*

The cost for the 1 week Fast Track service is £155 for an adult passport and £126 for a child passport.

The same-day fast-track option 

If you need your passport even faster, there is also the Online Premium service. With this service, you can collect your new passport on the same day as your appointment. However, please note that this service is only available for adult passport renewals issued after 31 December 2001. 

If you have an adult passport issued before this date, you will need to use the one-week fast-track service or the standard application process.

How to apply

To use the Online Premium service, you can simply apply and book an appointment online. The earliest appointment you can get is 2 days after applying.

The cost*

The cost of this service is £193.50 for an adult passport. 

Who can use these services?

It's important to know if you are eligible for these fast-track passport services. If you are applying for your very first UK passport, unfortunately, you won't be able to use either of the fast-track services (unless applying for a child's first-time passport in which case you can use the one-week fast-track option). For everything else, you will have to go through the standard application process instead.

In conclusion

Remember, it's always best to plan ahead and apply for your passport in advance to avoid any last-minute stress and government regulation curveballs. However, if you do find yourself in need of a passport urgently, these fast-track services can be a lifesaver.

If you have any further questions or need additional assistance, don't hesitate to reach out to the appropriate passport office or visit their website for more information (listed below). They will be able to provide you with the most up-to-date details and guidance regarding the fast-track process.

*Please note that the fees were correct at the time of writing and are subject to change. Check the website page listed below to find the relevant information.

References:

• GOV.UK - Passport application service
• GOV.UK - 1 week Fast Track service
• GOV.UK - Online Premium service

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Before Bitcoin was launched in 2009, Satoshi Nakamoto designed the cryptocurrency to have a maximum supply of 21 million coins. As part of the greater plan, the number of new Bitcoin that enter circulation decreases at regular intervals, thus maintaining the total supply. These intervals are known as halvings, and affect everything from market value to investing strategies to potential profitability. Let's get into it.

What is the Bitcoin halving?

Roughly every 4 years, or every 210,000 blocks that are mined, the network undergoes a halving where the block reward for miners is reduced by 50%. This reward is earned by verifying transactions and adding a new block to the blockchain. 

The halvings process decreases the rate at which new Bitcoins enter circulation, gradually depleting the remaining supply until the final satoshi is mined, expected to be around 2140. After that, miners will solely rely on transaction fees as an incentive to validate blocks.

The most recent Bitcoin network halving took place in April 2024, when the mining reward was reduced from 6.25 BTC to 3.125 BTC.

Why does the halving occur?

The Bitcoin halving is pre-programmed into Bitcoin's core code and is not something that can be changed - it's set in stone. Designed to control and slow down the release of new Bitcoins over time results in fewer and fewer Bitcoin being minted after each halving event. 

This limited supply is a key part of what gives the digital currency its deflationary nature and potential for increasing value. As the supply is capped at 21 million, the dwindling new supply hitting the market reinforces Bitcoin's artificial scarcity.

Previous Bitcoin halvings

Below we look at previous halvings and how these affected the price of Bitcoin. Historically, 12 - 18 months after halvings, Bitcoin has reached a record high. While this is not the rule of thumb, it has certainly been witnessed. 

2009 - Bitcoin launches

Date: 3 January 2009

Block reward: 50 BTC

2012 - Bitcoin’s first halving

Date: 28 November 2012

Block: 210,000

Block reward: 25 BTC

Price before halving (November 2012): Around $12

Next all-time high after halving: $1,156 (November 2013)

2016 - Bitcoin’s second halving

Date: 9 July 2016

Block: 420,000

Block reward: 12.5 BTC

Price before halving (July 2016): Around $650

Next all-time high after halving: $19,891 (December 2017)

2020 - Bitcoin’s third halving

Date: 11 May 2020

Block: 630,000

Block reward: 6.25 BTC

Price before halving (May 2020): Around $8,800

Next all-time high after halving: $69,000 (November 2021)

2024 - Bitcoin’s fourth halving

Date: 19 April 2024

Block: 840,000

Block reward: 3.125 BTC

Price before halving (April 2024): Around $65,000

At the time of writing, next all-time high after halving: $99,655.50 (November 2024) 

Taking a look at the future dates, the next halving is expected to take place in 2028, when the block reward will be reduced to 1.5625 BTC. Thereafter, in 2032 and 2036. This will continue until all Bitcoins have been mined, which is expected to be in 2140. 

Potential impacts of the recent halving

The next Bitcoin halving event is expected to have several potential impacts on the cryptocurrency. First and foremost, it will reduce the supply of new Bitcoins entering circulation by 50%, substantially decreasing its inflation rate. This scheduled supply rate reduction enhances Bitcoin's hardcoded scarcity which could lead to increased demand if investors view reduced supply as more desirable. Higher demand coupled with tightened supply could potentially drive up Bitcoin's price.

However, the halving will also cut block rewards for miners by 50%, which could force some smaller mining operations to shut down if their expenses outweigh newly reduced revenues. This may result in mining becoming less decentralised as larger entities with greater economies of scale are able to continue operating profitably. This could lead to further consolidation of the mining hashrate among a smaller number of big players.

Regardless of price movement, the most recent halving holds significance for Bitcoin's disinflationary issuance schedule, which will continue until the final Bitcoin is mined around 2140. This systematically shrinking supply reinforces Bitcoin's key value proposition as a deflationary asset, with absolute scarcity built into its design. Understanding this info highlights why some investors see Bitcoin's scarcity as a central role in its potential long-term value.

How will the rest of the crypto market be impacted?

We can confirm that Bitcoin's halving creates a ripple effect across the entire cryptocurrency market. While it directly impacts Bitcoin, it can also cause broader market shifts affecting many altcoins as investors start adjusting their portfolios during this time, which can lead to increased volatility and capital moving between digital assets. 

Established cryptocurrencies like Ethereum often respond to Bitcoin's market changes, though their reactions aren’t always predictable. Smaller, less-known coins may face even greater uncertainty. Because crypto markets are so interconnected, even indirect effects from the halving can create big waves, making it a key event that influences the entire ecosystem.

Should I invest during a Bitcoin halving?

Sure, navigating Bitcoin halving speculation can feel like walking through a maze. Investors often debate the best timing - before, during, or after the event - but there's really no universal playbook. 

The cryptocurrency market moves in mysterious ways, influenced by countless global factors, and past halvings have shown dramatically different market behaviors, making predictions challenging. While some see these events as potential opportunities, others view them with caution. 

The key is understanding that no single strategy guarantees success. Individual research, a clear view of personal risk tolerance, and a broad understanding of market dynamics are essential for anyone considering involvement in this volatile landscape.

The bottom line

The Bitcoin halving is a highly significant event worth learning about as it enforces the cryptocurrency's hardcoded disinflationary monetary policy. While past halvings have led to powerful bull markets and substantial price appreciation, as illustrated above, it's important to understand that future price movements remain unpredictable and cannot be relied on. 

Bitcoin's value is influenced by a complex array of factors beyond just supply dynamics, including adoption rates, regulatory developments, and overall market sentiment. Though artificially constrained supply can increase scarcity, demand is ultimately the driving force behind long-term valuations. 

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Hey there, Community! ✨

We've got some exciting news to share, and it's all about making your life a little bit easier and a whole lot clearer. We're thrilled to announce our partnership with TapiX – and before you wonder what this is all about, let me break it down into plain English, just for you.

No More Guessing Games 🎲

Ever looked at your transaction history and thought, "Where on earth did I spend that money?" We've all been there, scratching our heads, trying to decipher cryptic names or puzzling out just which coffee shop that was.

Here's where TapiX comes in – and why we're so excited about it. TapiX turns those confusing codes and names into information you can actually understand. We're talking real names of stores, complete with local language and all the details to make it click instantly. Yes, that means no more guessing games!

A Picture Speaks a Thousand Words 📷

But why stop at names? When you look at your transactions, you can now see actual logos and images – making it even easier to spot at a glance where you've been shopping. It's like turning your transaction history into a colourful gallery of your spending habits.
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Pinpoint Shopping Locations📍

Ever got a charge from a store and wondered, "When did I go there?”. Now, you won't just see the name; you'll get the exact location. We're talking street address, city, even zip codes – perfect for those "Aha!" moments.
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Extra Details at Your Fingertips 🫰

And there's more. Want to revisit a store but can't remember the name? You can now access additional details like website links, opening hours, and more for the store and companies that support it. It's like having a little assistant tucked away in your transaction history.

Why This Matters to You 👀

We believe managing your money should be as straightforward as shopping. That's why we partnered with TapiX – to transform your transaction list from a boring spreadsheet into a clear, understandable, and even helpful part of your daily life.

Here's what it boils down to: less time puzzling out your past spends and more time enjoying your present. Whether you're a budgeting pro or just trying to keep track of where your money's going, we think you'll love this new feature.

It's All About You 💙
At Tap, everything we do is aimed at giving you a better experience. We listen, we care, and we act on what you need. This partnership? It's all about making your financial life clearer and simpler.

We're here to help you make sense of your spending, save time, and maybe even discover some new favourite spots along the way. And this is just the beginning – we're always looking for ways to improve your experience.

So go ahead, take a look at your updated transaction history, and see the difference for yourself.

Here's to clearer, simpler, and more enjoyable finances.

Warmly,

The Tap Team.

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We are pleased to announce the reintroduction of our locking feature for users in the EU/EEA territories. By locking XTP and advancing to higher tiers, users can now access a diverse range of benefits. This upgrade reaffirms our commitment to delivering meaningful enhancements to our users, optimising their experience within the Tap ecosystem.

About XTP Locking

XTP locking is an innovative feature within the Tap app ecosystem, crafted for our savvy users seeking premium perks. By locking XTP tokens, users can unlock increased limits on their Tap Prepaid Mastercard and take advantage of reduced crypto exchange fees and FX fees. Upgrading is a straightforward process: simply choose the plan that suits you and enjoy enhanced perks for a secure 12-month period while your tokens remain safely locked.

The benefits of XTP locking  include increased spending limits on the Tap Prepaid Mastercard, reduced transaction fees, and access to exclusive perks that making the Tap experience even more rewarding.
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✨ The perks of our premium plans

• Boost spending limits on the Tap card
• Enjoy reduced crypto exchange fees
• Experience lower FX fees
• Get cashback on card purchases
• Access special rewards and promotions
  

📈 Discounted Trading fees using XTP

In addition to the exciting relaunch of XTP staking, we are reintroducing a key utility of the XTP token - the ability to pay trading fees within the Tap App. This means that users in the EU/EEA region can now resume paying with XTP, to cover their trading fees, availing themselves to an enticing 25% discount in addition to the benefits included in their current plan.

• Utilize XTP for trading fees
• Enjoy a 25% discount
• Maximize your savings while trading on the Tap platform
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This enhancement not only provides added utility to the XTP token but also enables users to save significantly on their trading activities, creating a more cost-effective and rewarding experience.

🙌 Embrace the XTP Revolution!
Experience the latest upgrade for EU/EEA territories: Tap locking is back. Whether you're a seasoned trader looking to optimize your experience or a newcomer eager to explore the benefits of locking, you can now access exclusive perks and save on trading fees.

Step into the future of finance with the Tap App, where locking means savings and open the doors to valuable rewards.

Whether you're engaging in trading or investing, mastering risk management is crucial for your financial journey. It's about ensuring your hard-earned money is protected and your decisions are well-informed. In this article, we'll delve into the importance of risk management and discuss five essential strategies to consider.

What is effective risk management and why is it important?

Effective risk management is a vital process that assists individuals involved in investment and trading in recognizing, evaluating, and addressing potential risks associated with their activities.

Essentially, it enables investors and traders to make well-informed decisions, optimize outcomes, and pursue sustained financial well-being despite fluctuations in the market. It's crucial because it safeguards your assets and enhances decision-making. By proactively identifying risks, you can implement measures to protect your resources and mitigate potential setbacks. Employing these risk management approaches equips you with an efficient set of tools to minimize risk within your investment portfolio.

The 4 pillars of a risk management strategy

Any established risk management process encompasses these four primary methods:

Accepting risks

This means being aware of and willingly taking on the risks associated with an investment without pouring extra resources into avoiding them. It's a smart move when the potential loss isn't too significant.

Transferring risks

This method entail shifting the burden of risk to a third party, typically for a fee, thus reducing direct responsibility.

Risk avoidance

After doing a risk assessment, opting not to invest in assets with potential risk altogether eliminates the chance of facing potential losses.

Risk reduction

Diversifying your portfolio across different assets or industries helps minimize the financial impact of risky investments, providing a more balanced and protected risk strategy approach.

The four pillars of risk management - acceptance, transferring risks, risk avoidance, and diversification - are crucial components of a robust risk management strategy, vital for safeguarding investments.

5 risk management strategies to implement

Below we will explore five essential risk assessment strategies that will empower you to make informed decisions and protect your investments. They also provide the answer to the burning question: why is having a reliable risk management strategy important?

1. Set both stop-loss and take-profit points

A stop-loss order sets a predetermined price for an asset at which the position will close. The stop price is set below the current price and, when triggered, helps protect against further losses. A take-profit order works the opposite way, setting a price at which you want to close your position and lock in a certain profit.

 To better explain this risk strategy let's assume you purchased a stock at $100 per share.

Stop loss: You set a stop-loss order at $90 per share. If the stock's price drops to $90 or below, the stop-loss order will trigger, and your position will automatically be closed, helping to limit your potential losses.

Take profit: You set a take-profit order at $120 per share. If the stock's price rises to $120 or above, the take-profit order will trigger, and your position will automatically be closed, locking in your desired profit.

Stop-loss and take-profit orders help you manage your financial risk in two ways. First, they can be set up in advance and will be executed automatically. There's no need to be available 24/7, and your pre-set orders will be triggered if prices are particularly volatile. This also allows you to set realistic limits for the losses and profits you can take. 

It’s better to set these limits in advance rather than in the heat of the moment. While it can be strange to think of take-profit orders as part of a risk management strategy, you shouldn't forget that the longer you wait to take profit, the higher the risk the market could fall again while waiting for an additional upside.

2. Have an exit strategy in place

An exit strategy is a predefined plan for investors and traders to exit their positions and leave their investments or trades. It's vital as it safeguards capital and reduces potential losses. 

With a clear exit strategy, decisions are objective, avoiding emotional biases and market fluctuations. It also ensures timely profit-taking, preventing missed opportunities and significant losses from holding onto investments too long. 

Using exit strategies like limit orders helps maintain discipline and rationality, avoiding impulsive decisions driven by emotions such as greed or hype. By implementing an exit strategy, traders can navigate the markets with a level-headed approach.

3. Diversification implementation

Diversification is a crucial investment strategy that involves spreading your investments across different assets to manage risk effectively. By diversifying, you can reduce the impact of market volatility on your overall portfolio. 

Investing in various asset classes, such as stocks, bonds, real estate, and commodities, ensures that your portfolio isn't overly dependent on a single asset's performance. This minimizes the risk of significant losses during market downturns. 

To create a well-diversified investment portfolio, consider factors like risk tolerance, financial goals, and time horizon. Allocate your investments strategically to achieve a balanced and resilient portfolio that can weather various market conditions.

4. Use the 1% rule

The 1% rule is a risk management strategy where you limit the amount you risk on an investment to just 1% of your total capital. For instance, if you have $10,000 to invest, you'd avoid risking more than $100 on a single trade. 

To implement this rule, you can purchase $10,000 worth of a stock or cryptocurrency and set a stop-loss order at $9,900, limiting potential losses to 1% of your total investment. Alternatively, you could invest $100 in a stock without a stop-loss order, ensuring a maximum loss of 1% if the asset's price drops to zero. 

This rule is applicable across all investment types, however, it is more important in volatile markets as it prevents excessive risks and potential heavy losses due to greed or high expectations.

5. Position sizing and risk-reward ratio

Position sizing and risk-reward ratio are fundamental concepts in effective risk management for investors and traders. Position sizing refers to determining the appropriate amount of capital to allocate to each trade, considering the risk tolerance and total portfolio size. By sizing positions correctly, investors can minimize the impact of potential losses on their overall portfolio.

Calculating the risk-reward ratio involves assessing the potential profit against the potential loss for each trade. A favorable risk-reward ratio ensures that potential gains outweigh potential losses, increasing the probability of overall profitability.

Balancing potential gains and losses through appropriate position sizing and risk-reward ratio is crucial for achieving long-term success in the financial markets. By aligning these factors, traders can optimize their trading strategies and protect their capital while seeking profitable opportunities.

In conclusion

ffectively managing risk is considered crucial for investors and traders aiming for financial success. By incorporating these five diverse risk management strategies, you can potentially navigate the markets and safeguard your investments.

Manage risk by embracing diversification to potentially mitigate the impact of market volatility, set stop-loss and take-profit points to automate risk management, and establish a clear exit strategy to potentially secure profits and minimize losses. Adhering to certain principles, such as the 1% rule, may be considered to potentially avoid excessive risks, and understanding position sizing and risk-reward ratios may be beneficial to potentially optimize trades.

It's worth noting that each individual's financial situation is unique, and it may be advisable to consult with a licensed financial advisor to receive personalized guidance and recommendations tailored to your specific needs and goals. With these tools at your disposal, coupled with conducting thorough risk assessments and vigilant risk monitoring, you will better prepared to navigate the ever-evolving landscape of finance.

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Navigating the world of cryptocurrency can be both exciting and incredibly overwhelming, especially when it comes to understanding the regulatory landscape in the United States. As the adoption of digital assets continues to grow, it's important to grasp the crypto regulation framework that governs it. 

In this article, we'll break down the key players and government agencies responsible for overseeing crypto markets in the US. Whether you're a beginner or someone looking to expand your knowledge, we aim to provide you with a clear understanding of how cryptocurrency, and crypto exchanges, are regulated in the United States.

The 4 main government agencies

These government agencies collectively contribute to establishing regulatory frameworks, protecting investors, preventing financial crimes, and ensuring tax compliance within the crypto exchanges and greater cryptocurrency landscape. Understanding their roles is vital for individuals and businesses engaging in cryptocurrency activities to navigate the regulatory landscape effectively.

Let's dive into the responsibilities and functions of some key agencies:

The Securities and Exchange Commission (SEC)

You’ve likely heard of the SEC, the Securities and Exchange Commission is one of the primary regulatory bodies when it comes to cryptocurrency. The SEC's main objective is to protect investors and maintain fair and orderly markets. 

In the context of cryptocurrencies, the SEC focuses on determining whether a particular digital asset qualifies as a security. This determination is vital, as securities fall under the agency's jurisdiction, subjecting them to stringent regulations. The SEC also takes action against fraudulent initial coin offerings (ICOs) and ensures compliance with securities laws.

The Commodity Futures Trading Commission (CFTC)

The Commodity Futures Trading Commission (CFTC) is responsible for overseeing the derivatives and futures markets, including those involving cryptocurrencies. The CFTC considers virtual currencies as commodities, thus granting the agency regulatory authority over cryptocurrency derivatives and trading platforms. By monitoring these markets, the CFTC aims to prevent manipulation, fraud, and other illicit activities.

The Financial Crimes Enforcement Network (FinCEN)

The Financial Crimes Enforcement Network (FinCEN) focuses on combating money laundering, terrorist financing, and other financial crimes. In the context of cryptocurrencies, FinCEN requires certain cryptocurrency businesses to register as Money Services Businesses (MSBs) and comply with anti-money laundering (AML) regulations. This helps ensure that illicit activities, such as money laundering through cryptocurrencies, are detected and prevented.

The Internal Revenue Service (IRS)

And lastly, the Internal Revenue Service (IRS) comes into play regarding the taxation of cryptocurrencies. The IRS treats virtual currencies as property, subjecting them to taxation. Cryptocurrency holders and traders are required to report their transactions and pay taxes accordingly.

The IRS has provided guidance on how to report cryptocurrency-related activities and is actively pursuing tax compliance in the crypto space. Remember, the onus lies on you to honestly and properly report any gains or losses made from the trading of cryptocurrencies. 

How does the SEC determine whether crypto is a security?

When determining whether a cryptocurrency qualifies as a security, the Securities and Exchange Commission examines factors such as whether the investment of money in a common enterprise holds the expectation of profits primarily from the efforts of others. If a cryptocurrency meets this definition, it falls under the SEC's jurisdiction and is subject to securities regulations. 

The SEC also plays a role in regulating initial coin offerings (ICOs) and has taken legal action against fraudulent ICOs that violated securities laws, aiming to protect investors from deceptive practices.

Additionally, the SEC has issued guidelines to provide clarity on compliance obligations, registration requirements, and disclosure standards for ICOs, emphasizing the importance of transparency and investor protection in the digital assets space. 

Understanding the SEC's role and its criteria for determining securities status is crucial for individuals and businesses operating in the cryptocurrency industry to ensure compliance and mitigate legal risks.

How individual states govern digital assets

While these four main federal agencies are responsible for building legal frameworks around these digital currencies, individual states in the US have started implementing their own rules and guidelines when it comes to cryptocurrencies. 

These regulations are designed to address specific concerns and tailor requirements to the unique needs of their jurisdictions. Noteworthy state-level initiatives include the introduction of licensing frameworks for cryptocurrency businesses, the establishment of regulatory sandboxes to promote innovation and the development of consumer protection measures. 

For example, states like New York have implemented the BitLicense, a regulatory framework for virtual currency businesses. Other states, such as Wyoming, have enacted laws to provide legal clarity and attract cryptocurrency companies. 

These state-level regulations add an additional layer to the overall regulatory landscape, highlighting the importance of understanding the specific requirements and compliance obligations within each state where cryptocurrency activities are conducted.

While some argue whether the federal government should regulate crypto assets, many in the industry are for the implementation of a regulatory framework as this will provide greater adoption and a broader understanding of digital assets.

Who regulates central bank digital currency?

In the United States, the Federal Reserve is currently looking into how a central bank digital currency (CBDC) could impact and fit into its domestic payments system. A central bank digital currency is a digital currency pegged to the local currency utilizing blockchain technology or digital ledger technology and operated by the country's central bank.

These digital assets are subject to different cryptocurrency regulations as the "companies" operating them are within the government's organization.

In conclusion

In summary, dealing with the multifaceted regulatory environment surrounding cryptocurrencies in the United States requires keen attention and ongoing awareness, given the involvement of major governmental agencies like the SEC, CFTC, FinCEN, and IRS. Whether operating within specific states or broader financial arenas, it's crucial for players in the crypto industry to stay up-to-date with these regulations and compliance demands.

Understanding the crypto regulation landscape not only safeguards investors but also helps with protection, preventing financial crimes, ensuring tax compliance, and promote transparency within this ever-evolving sector.

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With inflation rates soaring across all corners of the globe, the rising cost of living is taking its toll on everyone involved. Before we dive into how you can stay afloat in these uncertain times, let's first cover the basics.

When inflation occurs, the prices of goods and services go up, which in turn decreases the buying power of consumers. This leads to a decline in economic growth as people now have less spending power and high costs to contend with. 

Everything is more costly than it was a year ago—and even a few months ago. The cost of living has been going up dramatically, with costs for basic expenses like household goods and services on the rise. So, how can you stay ahead of the curve?

Below we cover three important steps to take in order to stay ahead of the rising cost of living. Protect your finances and protect your livelihood with these three top tips:

1. Safeguard your finances from inflation

While saving is vital to anyone's financial health, in periods of increasing inflation it's best to diversify and not keep all your savings in a fiat currency. This is due to fiat currencies depreciating in value during inflation, equating to a reduced amount of money in several weeks or months. 

Instead, try to move some of your savings into vetted investments, this allows you to keep your funds safe and grow their value at the same time. This might also lead to capital appreciation and dividends, should you invest in dollar-based investments. 

Explore alternative options that protect your funds from inflation but also allow them to grow. 

2. Increase your income

For a while now, consumer prices have been increasing steadily. It's unfortunate but it doesn't look like things will be getting any cheaper in the near future. You can't keep waiting and hoping for a better situation - you need to take action. 

The best way to do this is by focusing on ways to increase your income. Here are three options below, however, there are plenty more available online. Consider spending some time exploring this avenue. 

Apply for a promotion

Ask for an increase/promotion: If you're currently earning a salary, it's probably time to talk to your employer about boosting your earnings. Make a thorough account of what you've achieved and why you deserve a raise—and present it to the correct person. Look for resources on how to ask for a raise if you don't feel confident to do so right now. 

Learn a new skill

Add a new skill to your resume: With thousands of free tools online, look for a new skill that both interests you and leverages your current skillset. Learning a new skill is not only great for your mind but can also contribute to that promotion you are after or a high-paying job. Find an in-demand skill and get learning. 

Monetize new skill

Turn your skill into an income: Whether it's your new skill or something you're naturally talented in, consider turning your skills into income-generating products. From creating online classes to consulting to publishing online books, turn your skill/s into money. Again, there are plenty of resources online that can assist you in this endeavor. 

Focus on building wealth through avenues already accessible to you, from asking for a raise to creating an online course, these new avenues of income can help you stay afloat in periods of inflation.

3. Be wise with your money

This goes without saying, but no matter how much money you make, you want to stick to your budget and follow your financial plan. Now isn't the time to be spending lavishly. Also ensure that you have the resources in place to fall back on should you experience any unexpected hard times, like losing a job or emergency. healthcare costs 

A great 3-step plan for preparing for, and then overcoming, inflation is to:

• Create a budget to cover basic expenses and lifestyle expenses, and stick to it.
• Pay off debt. Interest rates are going to increase meaning that you will be paying more for your current loan.
• Keep building your emergency fund. This is the first port of call when starting to save. Aim to have six months of living expenses saved up in an accessible account. 

What is the cost of living index?

A cost-of-living index is a price index that measures the relative cost of living over time or in different regions. The index takes into account changes in prices for goods and services, as well as substitution with other items when prices vary.

As an example from the U.S. according to the Consumer Price Index (CPI), between March 2021 and March 2022, the cost of living index rose by 8.5% (before seasonal adjustment). This is the highest 12-month increase that has been reported since December 1981.

The bottom line on the cost of living

While inflation doesn't need to cause mass hysteria, it is a time to be more consistent and cautious with your money. Be mindful of what you're spending your money on, be aware that loan repayments will increase, and be prepared for increases in everyday goods and services. By following these three steps above (safeguard, increase, and be wise with your money), you should be able to stay ahead of the curve. 

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As we delve deeper into understanding the global financial market and the investment opportunities within it, here we break down the difference between the capital market and the money market. Together, these two markets make up a large portion of what is effectively known as the financial market.

Capital market vs money market

As we break down the money market vs capital market debate, let's first cover the basics of what each entails.

The capital market is where stocks and bonds are traded between financial institutions, professional brokers, and individual investors with a focus on long-term price appreciation.

The money market centers around the exchange of short-term debt between governments, commercial banks, corporations, and other financial institutions. It entails borrowing and lending for a limited amount of time - anything from an overnight transaction to up to a year at maximum.

What is the money market, exactly? 

The money market refers to the market where short-term debt securities are traded among financial institutions, commercial banks and corporations. These securities typically have maturities of one year or less and are considered to be very low-risk investments.

Money market securities include instruments such as Treasury bills, commercial paper, certificates of deposit (CDs), and repurchase agreements (repos). These securities are issued by governments, corporations, and financial institutions as a way to raise capital quickly and at a relatively low cost.

How to participate in the market

Investors can participate in the money market by purchasing these financial assets directly or through a money market mutual fund. Money market funds invest in a variety of short-term debt instruments and are designed to provide a safe and liquid investment option for individuals and institutions looking to park their cash reserves or earn a modest return while maintaining a high level of liquidity.

What is the capital market, exactly?

The capital market refers to the market where long-term securities, such as stocks, bonds, and other financial instruments, are bought and sold among investors and institutions. Unlike the money market, which deals with short-term debt securities, the capital market deals with longer-term investments that typically have maturities of more than one year.

The primary market and secondary market are two different stages of the capital market where securities are bought and sold.

Stages: primary market and secondary market

The primary market is where securities, such as stocks, bonds, and other financial instruments, are first issued by companies or governments to raise capital. This is often referred to as an initial public offering (IPO) or a new issue. In the primary market, the securities are sold directly to investors through underwriters or investment banks.

The secondary market, on the other hand, is where previously issued securities are bought and sold among investors. This market allows investors to buy and sell securities with other retail investors, rather than directly with the issuing company. Stock exchanges such as the New York Stock Exchange is an example of a secondary market where investors can trade stocks that are listed on the exchange.

Equity market

The capital market can be divided into two main segments: the equity market and the debt market. The equity market, also known as the stock market, is where shares of publicly traded companies are bought and sold. 

Investors can purchase shares of stocks, which represent ownership in a company and entitle the shareholder to a portion of the company's profits, known as dividends. Investors can also profit from capital appreciation, which is the increase in the value of the stock over time.

Debt market

The debt market, on the other hand, is where companies and governments issue bonds to raise capital. Bonds are essentially loans made by investors to the issuer, which promises to pay back the principal amount with interest over a specified period. Bonds are generally considered to be less risky than stocks, but they also offer lower returns.

How to participate in the market

Investors can participate in the capital market through various means, such as buying capital market instruments like stocks or bonds directly, investing in mutual funds or exchange-traded funds (ETFs), or through alternative investment vehicles such as private equity or hedge funds. 

The key differences between the capital market and money markets

The capital market can be more volatile than the money market due to the longer-term nature of investments, but it can also offer the potential for higher returns over time. It is an important component of the global financial system and can play a significant role in economic growth and development.

On the other hand, the money market can be an attractive option for investors who prioritize safety and liquidity over high returns. Because money market securities are short-term and typically low-risk, they offer a lower yield than other investments, such as stocks or corporate bonds.

However, money market instruments can be an important component of a diversified investment portfolio, particularly for those who are looking to minimize risk and maintain a stable source of income in the financial market.

Which is best for you?

Determining which market to engage in will depend on each person’s financial goals, risk management levels, and interest in the markets. Speak to your financial advisor or conduct the research on your own to establish which investment options best align with your needs and goals. Both options present strong pros and cons, the ultimate decision will come down to your unique preferences.

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Whether you’re part of the big screen brigade or prefer to use a smartphone, if you’re looking for a way to add the British unit of currency (£) to your documents, emails, or messages, look no further. In this useful guide, we'll walk you through the simple steps to quickly insert the pound symbol on your relevant device: Mac, PC, or smartphone.

But first, if you need to send pounds overseas, Tap, a regulated and reliable fintech platform, has got you covered with low fees and excellent exchange rates. Send funds from anywhere to anywhere, and for free between Tap users. Simply load either GBP or Euro onto the app and seamlessly send, spend or exchange your funds wherever you are.

Where did the British Pound sign come from?

The British Pound Sterling, symbol £, boasts a rich history dating back over 1,200 years. It began as a weight of silver in Anglo-Saxon England and became the official currency in 1694 under William III. 

With the growth of the British Empire, it gained global prominence. Despite challenges such as wartime disruptions and the 1967 devaluation, it remained strong. The pound left the gold standard in 1971. Through shifts like Brexit, it endures as a significant global currency, shaped by the UK's economic journey and historical impact on finance and trade.

According to the Bank of England, the symbol originates from the letter L, which is the first letter of the Latin word for 'libra', meaning a pound of money. Although the exact time when the horizontal line was added is uncertain, it can be traced back to a 1660 cheque in the Bank of England's collection.

Typically, the British pound sign is placed before the number. So, if you want to write ten pounds, it would be represented as £10. Fun fact: in 1970 a new £20 banknote featuring William Shakespeare was issued by the Bank of England sparking the tradition of including characters that have shaped the country on coins and notes.

Simple ways to insert £ into a document

Now that we're familiar with the British pound sign, let's delve into how to type it on both Mac and PC keyboards, as well as a smartphone.

For Mac users

If you're using a Mac, the quickest way is to use a keyboard shortcut. Simply hold down

the Shift key (Option key on US keyboards) and simultaneously press the number 3.

For Windows users

On a Windows PC or laptop, you can use the same shortcut. Hold down the Shift key and press the number 3, which is usually located on the top row of your keyboard. However, if you're using a full keyboard with a number pad, it may be positioned to the side.

To make things even easier, some keyboards have the £ symbol printed above the number 3 key, providing a visual reminder. Just keep in mind that American keyboards may not include the British pound sign.

If you prefer a simpler method, you can always copy and paste the pound symbol from here: £

For smartphone users

Now, let's move on to inserting the British pound sign on your mobile device, whether it's an iOS or Android.

Using your smartphone or tablet, simply switch to the numbers and symbols keyboard on your device, and you'll find the £ symbol as one of the character options. In case you can't locate it, try long-pressing the dollar sign ($) to access more currency symbols.

Keyboard-free? No problem

What if you don't have access to a keyboard? Don't worry! There's a way to insert the British pound sign in popular word processors without typing.

If you're using applications like Microsoft Word or Google Docs, follow these steps:

1. In Microsoft Word, go to the "Insert" tab at the top and select "Symbol." In Google Docs, choose "Special Characters" from the drop-down menu.

2. Look for the pound symbol (£) in the list of characters. In Google Docs, you may need to select "Symbol" first and then navigate to the "Currency" category.

3. Click on the pound symbol to insert it into your document.

That's all there is to it! Now you know how to effortlessly type the British pound sign (£) on your Mac, PC, or mobile device. Feel free to use these methods whenever you need to add this symbol to your content.

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BAT is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold BAT for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting BAT will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Basic Attention Token (BAT) is an Ethereum-based utility token integrated into the privacy-focused Brave browser. Launched in 2016, Brave aims to revolutionize the digital advertising industry by promoting fairness and transparency between advertisers, publishers, and users.

Users receive cryptocurrency rewards in the form of BAT for viewing ads, which allows publishers to deliver more impactful advertisements. This empowers advertisers to make better use of their budgets and better target their target audience. Users then have the flexibility to hold, exchange, or use BAT to support their favorite content creators.

BAT acts as a settlement currency for publishers within the Brave browser ecosystem, facilitating transactions between advertisers, publishers, and users based on their web activity. This token streamlines business between the three parties

Get to know more about Basic Attention Token (BAT) in our dedicated article here.

Welcome to the exciting world of NFTs. Non-Fungible Tokens (NFTs) are unique digital assets that have taken the internet by storm. Unlike cryptocurrencies, NFTs represent one-of-a-kind items, from NFT digital art to virtual real estate, making ownership and authenticity easily verifiable thanks to blockchain technology.

Playing a big role in the Web3 movement, the NFT ecosystem is proving its potential when it comes to revolutionizing how we value and trade digital creations. Below we explore the concept, explain how to navigate NFT marketplaces and take a look at the advantages and disadvantages that the NFT market is faced with.

What are NFTs?

Non-Fungible Tokens (NFTs) are unique digital assets built on blockchain technology that have transformed the way we perceive ownership and value in the digital world. Before we get into it, “non-fungible” means that something is unique and cannot be exchanged on a one-to-one basis with any other item, as it possesses distinct attributes or characteristics that set it apart from others. 

Unlike cryptocurrencies such as Bitcoin or Ethereum, which are interchangeable and hold equal value, NFTs are indivisible and represent distinct items, each with its own verifiable identity and scarcity. 

This uniqueness is what makes NFTs special and highly sought after in various industries. From digital art pieces to real estate, NFTs have opened up a realm of possibilities, with some fetching jaw-dropping prices at auctions and marketplaces. 

The most expensive piece of NFT art ever sold was in December 2021, when digital artist Pak's NFT creation "Merge" sold for an astonishing US$91.8 million.

NFTs have empowered creators, artists, and even gamers, as these assets grant exclusive ownership and authenticity of their work or collectibles, sparking a revolution in the way we trade and appreciate digital creations.

How do NFTs work?

NFTs are essentially a digital file created using a blockchain network, meaning that once minted its history of ownership will be permanently stored on that specific blockchain (i.e. Ethereum). 

Blockchain technology forms the backbone of NFTs, operating as a decentralized, tamper-resistant ledger that records transactions across a vast network of computers. It enables transparency and immutability, ensuring each NFT's ownership history and authenticity can be traced and verified by anyone at any time.

Smart contracts, self-executing digital agreements stored on the blockchain, play a pivotal role in NFTs by automating the creation, ownership, and transfer of these unique tokens. These smart contracts encode the rules and conditions governing NFT transactions, enabling seamless interactions and ensuring that creators receive royalties each time their NFT is resold.

NFTs adhere to specific standards, like ERC-721 and ERC-1155, which dictate their structure and functionality on the Ethereum blockchain. ERC-721, the original NFT standard, ensures the uniqueness and indivisibility of tokens, while ERC-1155 allows for the creation of both fungible and non-fungible assets, enabling efficient batch transfers and reducing gas costs.

These standards have paved the way for the vibrant NFT marketplace, supporting various creative and commercial use cases within the digital realm. From digital artists being able to more seamlessly sell their digital artwork to empowering users through trading NFTs, the NFT space is a growing and impressive ecosystem.

How to buy an NFT and navigate NFT marketplaces

Buying and owning NFTs is an exciting journey into the world of digital ownership. To begin, you will need to set up a digital wallet, a secure digital space that stores and manages NFTs. These wallets are available in various forms, from web-based to hardware options, and must support the network on which your NFT was created. Metamask is a common option.

Next, you’ll want to familiarise yourself with several NFT marketplaces. You'll want to find one that offers the NFT projects or NFT collections that you're after, although it is equally important to prioritse security and ease of use when selecting from the range NFT marketplaces. OpenSea and Rarible are two of the largest NFT marketplaces to explore digital artwork and browse NFT collections.

Once you’ve chosen the digital collectibles you wish to purchase, follow the instructions specific to that platform and enter the digital wallet address to where you want the Non-Fungilbe Tokens to be sent. Once the transaction is complete, the NFT will be sent to your wallet and the blockchain will note and verify ownership of that digital asset. 

Should you wish to sell NFTs, you will need to create the digital asset or NFT collections and follow the instructions specific to the marketplace you wish to sell them on.

Digital assets use cases across various industries

NFTs have unlocked a large number of innovative use cases across diverse industries. From real estate to art to gaming, these assets are changing the way data ownership is both viewed and managed. 

In the realm of art and collectibles, artists can tokenize their work into NFT art, proving authenticity and enabling direct sales to collectors, cultivating a new era of digital art ownership. 

NFTs within the gaming and virtual reality platforms allow players to own rare in-game items or virtual land, enhancing the gaming experience and creating vibrant virtual economies. 

While in the music and entertainment industry, these digital assets empower musicians to tokenize albums or concert tickets, transforming fan engagement and royalty distribution. 

Even real estate has seen a shift as NFTs streamline property ownership, fractionalizing investments, and simplifying title transfers. As NFT adoption continues, expect many more industries to embrace this transformative technology.

The pros and cons of NFTs

NFTs bring a host of advantages that are reshaping the digital landscape, however, they are not without their challenges and risks. We explore both sides of the coin below. 

Advantages of NFTs

Firstly, they offer indisputable ownership and authenticity verification, as each NFT is stored on the blockchain, providing a transparent and immutable record of its origin and ownership history. 

This instills trust in both collectors and investors, elevating the value of digital assets to new heights. Secondly, NFTs open up new horizons for artists and creators, granting them unprecedented opportunities to monetize their work directly, without intermediaries, and earn royalties from subsequent resales. This empowerment has fostered a flourishing digital art scene and enabled emerging talents to gain recognition globally.

Additionally, NFTs make digital assets more interactive and engaging by letting creators add special features. For example, gamified NFTs enable users to take part in virtual worlds where in-game items have real-world worth, completely changing how we experience games and encouraging more active involvement.

Disadvantages of NFTs

One major concern is their environmental impact, as the blockchain's energy-intensive nature raises questions about sustainability. Market volatility is also a potential risk, with NFT prices subject to speculation and sudden fluctuations, leading to potential financial losses for investors. 

Additionally, the relative novelty of NFTs has attracted scammers and fraudulent schemes, making it essential for buyers and sellers to exercise caution and conduct thorough research before engaging in transactions.

NFTs have also raised copyright and legal concerns. While they provide proof of ownership for digital assets, they may not necessarily address copyright infringement or unauthorized usage of underlying intellectual property. This requires a careful balance between empowering creators and protecting their rights, ensuring the fair and ethical use of NFTs in the digital ecosystem.

Overall, the advantages of NFTs hold immense promise for the digital world, but addressing the associated challenges and risks is essential for responsible and sustainable growth in this transformative domain.

In conclusion

Thanks to blockchain technology, NFTs have revolutionized digital ownership and value, empowering users through the ability to create, buy and sell NFTs. They provide indisputable ownership verification and empower artists and creators to monetize their work directly. The interactive and gamified aspects of NFTs enhance experiences, but challenges include environmental impact, market volatility, and copyright concerns. As NFT adoption continues, understanding both advantages and challenges is crucial for their responsible and promising future.

Porter’s 5 forces is a model that helps to identify the weaknesses and strengths of an industry, empowering the potential investor with insights. In fact, the model is used by more than just investors, companies and analysts also make use of its structure, allowing them to analyze the competitive forces in an environment and build an appropriate business strategy.

Below we outline how the Porter’s five forces model works, where it came from, and how you can use it to your advantage. 

What is the Porter's Five Forces model?

Porter’s Five Forces focuses on identifying and analyzing five competitive forces within an industry that can be used to establish what the industry’s strengths and weaknesses are. The five forces analysis can be applied to any segment of the economy and can determine a company’s business strategy, level of competition, or long-term industry profitability. 

The Five Forces are:

• Competitive forces in the industry
• Potential of new entrants into the industry
• Power of suppliers
• Power of customers
• The threat of substitute products

This model is designed to help analysts and managers comprehend the competitive landscape that a particular company faces and how the company is positioned within it.

Where did Porter’s Five Forces model come from? 

The five forces analysis model was created by and named after Michael E. Porter, an established Harvard Business School professor. The model was introduced in Porter’s book, Competitive Strategy: Techniques for Analyzing Industries and Competitors.

Developed in 1979, the five forces analysis model was created to provide industry outsiders with insight and knowledge into the positioning and competitive strength of an organization. The business analysis model has become an important tool in the financial sector and is still widely used today, over 40 years later.

Breaking down Porter’s Five Forces

Below is a breakdown of the Five Forces analysis model which is universal across almost every market and industry in the world. The model looks at the company’s positioning within the market to determine how much power it holds. 

1. The competition in the industry

The first of Porter's Five Forces analysis model focuses on the number of competitors a company has and its ability to undercut them. The more existing competitors and competitive rivalry a company has, along with the number of similar products and services they offer, the less power the company holds. 

When the company has a high level of competitive rivalry, suppliers and buyers will gravitate toward the lower prices, while when competition is low, companies have more control over the prices they charge and the terms of their deals.

More power equates to a competitive advantage which typically equates to more sales and profits. Hence, why industry competition and competitive forces shape strategy.

2. The potential of new entrants into an industry

Of course, new entrants into the market also pose a threat to a company’s power. This can be measured by looking at the amount of time and cost it would take to be a potential competitor. The more resources needed, the more established the company’s position. 

The stronger the barriers to entry, the better for companies already positioned in the market. 

3. The power of suppliers

This point in Porter's five forces analysis model looks at the power the suppliers hold in terms of driving up the costs of resources. This can be determined by looking at the number of suppliers available, how unique their products are, and the cost of a company switching to another supplier. 

The fewer the number of suppliers, the more a company depends on them in turn driving up the supplier’s power. The supplier then has more control over their input costs which can result in lower profits for the company. 

4. The power of customers

The power of customers looks at how much control the consumer has to drive a company’s prices down. This looks at the number of customers a company has, the impact of each customer, and the cost of finding new customers or markets to sell to. 

The smaller the customer base, the more power they have to negotiate lower prices. While a larger customer base with many smaller clients is able to charge higher prices and in turn increase profitability. 

5. The threat of substitutes

The final of Porter’s Five Forces analysis model is the threat of substitutes and looks at the threat that substitutes goods and services can pose to a company. The more unique and more difficult a product or service is to substitute, the better the company’s positioning. As consumers will have little else to turn to, the company automatically accumulates more power. 

These Five Forces analysis can assist a company in building a strategy that ensures well-utilized resources and boosted profits, however, this strategy will need to be consistently visited to ensure that any changes in the external environment are factored in. 

What are the downsides of Porter’s Five Forces?

The most pressing downside of the Five Forces model is that it was designed to look at an individual company, as opposed to the wider industry. Additionally, this proves difficult when the company falls into two or more industries, making the framework less impactful. 

The final downside is that the model is designed to measure all five aspects equally against each other which isn’t always the case. Some factors might be more prevalent in one industry but less relevant in another. 

Porter's Five Forces Model vs SWOT analysis

Another tool used in the business sector is SWOT analysis, which looks at the strengths, weaknesses, opportunities, and threats of existing companies. When comparing the two the most prominent differentiation is that Porter’s Five Forces model tends to examine the external environment and competitive strategy of a company while SWOT looks at the internal aspects of an organization. 

In conclusion

This business analysis model aids in assessing the competitive landscape within a company's industry. The level of influence a company wields across these factors could potentially shape future profitability.

Porter’s Five Forces forces company’s to look beyond their organization and at the greater industry structure in order to map out future plans and strategies. While this framework still plays a valuable role in the business sector, it should not be the only tool used by a company to determine its strategy. 

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Harnessing a wealth of security strategies, fintechs and banks employ several safeguarding measures to protect your hard-earned money. But, as one might expect, fraudsters continually strive to discover ways to exploit these protections.

In this article, let's delve into the tactics used by criminals to attempt to manipulate you into authorising card transactions inside the Tap app. These aren't transactions that originate from your usual activity, instead, they are crafty attempts at transactions initiated by nefarious individuals looking to exploit your finances.

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Stolen card schemes
The initial phase of this deception involves a criminal acquiring credit or debit card details. Such information could either be procured during genuine organisation data breaches or through responding to deceitful texts or emails, which is widely known as phishing or smishing. These messages often pose as credible businesses. In certain cases, they could even resort to physically stealing your card.

There are some preventive measures you can take to safeguard your personal and financial data: 

1. Cultivate a healthy scepticism when it comes to text messages or emails containing links, especially those urging for payment details or requesting account login.

2. Instead of immediately clicking on links in messages that appear to be from “reputable companies”, consider an alternative method. Use Google to search for them independently (without using the provided link in their message) to ensure their credibility. Conducting your own research can effectively protect you against possible scams.

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Safe account fraud schemes
Scammers get creative to try to trick you out of your money. A common trick is to make you worry about your bank account's safety. They might call you, making it look like it's from a real bank or fintech pretty convincingly — a trick usually known as 'spoofing.'

During such a call, they might ask you to approve a card transfer, suggesting it will move your money to a 'secure place' as protection. To sound convincing, they might even tell you that any payment you can see on your app isn't real and is instead a 'test' of your account's safety.

However, it's crucial to remember that legitimate financial institutions will never prompt you to relocate your finances or process payments to ensure your account's security. Instead, they already have stringent security measures in place to protect your money.

If you receive such a call, take a moment and think. You're better off hanging up and checking things out. Tap support and security team will never call you over the phone. It's always smarter to take a moment to be safe than regret being in a hurry later.

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Impersonating refund scams
An additional technique employed to deceive individuals into authorising a card payment through their app involves fraudulent calls wherein the caller pretends to represent an online store. Picture this: You receive a call with the caller claiming an unauthorised purchase has been made using your card. 

Naturally, your immediate reaction is denial, because you didn't make that purchase.

But here comes the twist. The tricksters would insist that in order to rectify the error and process your refund, you need to confirm the payment in your app. It sounds counterintuitive, right? That's because it is!

In both instances, the authenticity of these scams lies in the detailed knowledge that the fraudster already possesses your card – they have all the information required to initiate a payment (refer to the previous section named 'Stolen card schemes'). 

The illusion of their credibility sparks a false sense of security, leading you to authorise the payment. Unfortunately, when you authorise the payment within the application, you're effectively granting permission for the funds to be debited from your account.


How criminals try to bypass security measures
Criminals continually seek ways to evade security measures, particularly those designed to protect online financial transactions. One such protective measure is 3DSecure, deployed to fortify the safety of your online card transactions. 

3DSecure functions by prompting the cardholder to authenticate certain transactions using their Tap application. This verification process ensures that the individual carrying out the payment is indeed the card's legitimate owner and not an unauthorised party.

Intriguingly, scammers have constructed a strategy to bypass this safeguard. Their preferred method is a telephonic approach, attempting to manipulate unsuspecting individuals into authorising transactions on their behalf.

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What steps can I take to safeguard myself?

When finance meets technology, the world is your oyster - until you encounter a scam. Spotting a scam is your first line of defence. If a random individual approaches you, pressuring you to approve a card payment through your app, hug your inner sceptic. This rings alarm bells for a scam. Should you find yourself in such a pickle, don’t hesitate - hang up, firmly dismiss it, and message the Tap support team to report the incident.

Fortifying your financial fortress is an easier task than before, thanks to the accessibility of financial apps. The Tap app puts the power of financial security in your hands - literally! Located under the 'Cards' tab, you'll find a freeze card toggle. A quick press of this nifty control will lock your card, thus preventing unauthorised transactions.

Just like you wouldn't let a stranger inside your home, it's wise not to accept card payments that you never asked for. This could leave you susceptible to scams, meaning your hard-earned money risks vanishing into thin air.

Despite your best efforts, if you find yourself entangled in a fraudulent scenario - don’t despair. Our customer service team is there for you. Contact them through the Tap app live chat or via email immediately. 

Finally, pay a visit to the security section of our blog, where you will find tips to be armed with extra tips for dodging scams as you proceed on your personal finance journey. Remember, stay savvy, stay safe, and keep nurturing your financial know-how.

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We are delighted to announce the listing and support of Loopring (LRC) on Tap!

LRC is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold LRC for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting LRC will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Addressing the speed and cost concerns associated with the Ethereum platform and decentralized cryptocurrency exchanges, Loopring delivers a new layer to the DeFi space. Describing itself as “an open-source, audited, and non-custodial exchange protocol,” Loopring is bringing something new and innovative to the space.

The Loopring Exchange aims to offer a hybrid platform combining the best features of centralized exchanges and decentralized exchanges, addressing issues like structural limitations and transparency. The platform combines centralized order matching with decentralized blockchain order settlement, using zero-knowledge proofs (ZKPs) for enhanced privacy, reduced costs, and high speeds.

The Loopring cryptocurrency, LRC, plays a crucial role in the operations of the protocol.
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To operate a decentralized exchange on Loopring, a minimum of 250,000 LRC needs to be locked up. This allows the exchange operator to utilize on-chain data proofs. Alternatively, an operator can stake 1 million LRC to run an exchange without this feature.

LRC serves as an incentive for the proper utilization of the Loopring network. Exchange operators who deposit LRC may face confiscation of their deposits by the protocol if they operate exchanges poorly. These confiscated funds are then distributed to users who choose to lock up LRC.

Get to know more about Loopring (LRC) in our dedicated article here.

In an era of rapid digitization, we at Tap prioritize the security of our users above all else. Our continuous aim is to improve our security measures, addressing new threats as they emerge. Today, we are delighted to unveil our latest effort in this ongoing commitment: the Anti-Scam Protection Feature.

The internet has revolutionized many aspects of our lives, not least banking. But with this convenience come certain risks. We've noticed a rise in scams involving remote access tools like Teamviewer or Anydesk. While these apps have legitimate uses, they are being increasingly exploited by scammers to gain unauthorized access to users' mobile devices and their financial accounts.

Seeing the need for an additional line of defense, we've developed the Anti-Scam Protection Feature. This tool proactively scans all the installed applications on a user's device during startup. If it detects potentially harmful apps like Teamviewer or Anydesk, it immediately triggers an unskippable alert. This alert informs users about the potential security risk and instructs them to remove these apps.

Furthermore, we urge users to reach out to our dedicated support team for further guidance. Our team is always ready to assist our users at every step, ensuring they can navigate the online financial landscape safely and confidently.

This feature is not just another update to our app - it is a testament to our unwavering commitment to user safety. By proactively identifying potential threats, our Anti-Scam Protection Feature helps us enhance account security and promote safe digital practices.

The digital landscape is constantly evolving, and so are the threats that lurk within. But with innovative features like our Anti-Scam Protection Feature, we aim to stay a step ahead, ensuring that Tap continues to be a secure platform for all your financial needs.

We highly encourage you to ensure that your Tap app is always updated to the latest version, allowing you to fully leverage our newly introduced security features as we continue to release them. Together, let's continue to create a safer financial environment.

We are delighted to announce the listing and support of Ethereum Name Service (ENS) on Tap!

ENS is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold ENS for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting ENS will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Ethereum Naming Service is a branch from the original blockchain network which aims to make the crypto space, particularly within the DeFi and Web3 sectors, more user-friendly and accessible. Similar to how Domain Name Service made the internet more accessible, Ethereum Name Service aims to do the same and become a fundamental component of these sectors.

Users can register a name through various ENS domain registrars or directly through the ENS manager. Once registered, the name is added to the Ethereum Name Service Registry, and the user becomes the owner of that name. ENS uses a hierarchical system of domains similar to the DNS system used for the internet. 

Once registered, the user can then set the resolver, which is a smart contract that provides information about the Ethereum wallet address associated with the ENS name.

The Ethereum Name Service (ENS) system is similar to the DNS (Domain Name System) used on the internet. Users can register an ENS domain name under the .eth top-level domain and associate them with their Ethereum addresses by using the platform's smart contracts.

The Ethereum Name Service (ENS) did not have its own token until recently. In 2021, the ENS team announced the launch of a new governance token called ENS, which is separate from the old ERC-20 token with the same name.

Get to know more about Ethereum Name Service (ENS) in our dedicated article here.

If you're looking to tap into the world of earning passive income in the cryptocurrency space, you've come to the right place. While both yield farming and staking provide this service, they offer slightly different means of getting there. In this article, we're exploring yield farming vs staking, and how to get started. 

Both yield farming and staking fall under the DeFi (decentralized finance) umbrella. This aspect of the industry allows users to lend and borrow cryptocurrencies, similar to the traditional banking system. DeFi lending platforms and liquidity pools provide users with an alternative way to earn passive income, offering varying interest rates and methods of doing so. 

What Is Yield Farming?

Yield farming involves users lending their tokens to DeFi lending platforms. Investors can decide which cryptocurrencies they would like to use, and where they would like to invest their funds. The options range from lending platforms like Compound and Aave to decentralised exchanges (DEXs) like PancakeSwap and Uniswap. 

On a lending platform, the process typically involves a user depositing their funds on the platform, receiving both an APY (annual percentage yield) and tokens native to the platform. 

On DEXs, this alters slightly in that users need to provide one of the pair of coins as per the liquidity pool they wish to engage in. Users will then receive a percentage of the rewards of the pool based on the amount provided.

Passive income from yield farms comes from the interest paid to the borrower or the users of the liquidity pool. Yield farming is considered to be a more reliable option than trading cryptocurrency as yield farming uses smart contracts or automated market makers (AMM) to facilitate all trades. Top yield farms can be found on Ethereum, Polygon, Binance Smart Chain (BSC) and Fantom.

What Is Staking?

Staking involves locking your cryptocurrencies in a smart contract. In order to properly understand staking one will need to have a brief understanding of the Proof-of-Stake (PoS) consensus. 

While Bitcoin uses a Proof-of-Work mechanism to validate transactions through miners solving computational problems, PoS instead uses a less energy-intensive mechanism based on validators staking their cryptocurrency and generating new blocks. This is typically done in a selective process, with each validator getting a turn based on the amount that they stake. By staking in the network the validators are providing collateral to prove they are not bad actors. Ethereum is currently moving to a PoS consensus, with several other big cryptocurrencies already there.

To earn a passive income through staking users can opt to become validators on a network or participate in liquidity pools, alternatively, they can do so through a wallet or exchange that supports such activities. Pools vary in their conditions, lock-in periods (the amount of time the funds are required to stay there) and APYs.

As each staking process changes from cryptocurrency to platform, ensure that you do thorough research on the one you wish to take part in. Here are a few of the top staking coins: Ethereum (ETH), Cardano (ADA), PancakeSwap (CAKE), and Polygon (MATIC). 

Yield Farming vs Staking

While both offer excellent means of earning a passive income in the crypto space, the main difference is that yield farming involves depositing one's funds onto a DeFi platform while staking typically involves using one's funds to support a blockchain network or help validate transactions. 

Profits

Staking usually yields profits of around 5% and is expressed with a definite APY. Yield farming on the other hand can provide up to 100% returns but will require a well throughout investment strategy. 

Rewards

Staking rewards are given to validators as incentives for generating new blocks while yield farming rewards fluctuate with the token's price changes and are determined by the liquidity pool. 

Lock-In Periods

Some staking pools require users to lock in their funds for a certain period of time, often also stipulating a minimum amount. Yield farming does not require either of these. 

Security

Staking criteria are determined by the network and tied to the blockchain's consensus, users staking their funds are only at risk of losing them if they have ill intentions or act badly. Yield farming is less secure in that it relies on smart contracts and DeFi protocols, which can be susceptible to hackers if not created correctly.

Which Is Better: Yield Farming vs Staking?

Both yield farming and staking provide options in which one can earn passive income in the crypto space. While each has its advantages and disadvantages, the one offers a safer course while the other a more high-risk high reward endeavour. When it comes to deciding between the two, users should first establish how much risk they are willing to take and how comfortable they are in the DeFi space, followed by what kind of investors they would like to be.

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Looking to maximize profits and minimize risk in crypto investing? These top 6 crypto investing strategies will help you manage your portfolio and navigate the markets effectively. Whether you're a new or experienced investor, understanding these cryptocurrency investment strategies is crucial. Just like stocks and bonds, crypto investments require a solid strategy tailored to your unique needs. 

Be sure to outline your investment objectives, investing style, and long-term investment strategy before getting started. Let's explore the essential strategies for navigating the dynamic crypto market.

Top cryptocurrency investment strategy

Here are the best of the best when it comes to deciding on a crypto investment strategy.

Look to liquidity

When it comes to investing in the crypto market, liquidity is crucial. Liquidity looks at how readily an asset can be converted into cash while still preserving its value. The term "liquidity" refers to whether traders can enter or exit a trade at a specific price point. Bitcoin, for example, has the greatest liquidity of any cryptocurrency in the marketplace. 

Traders must be able to enter and exit positions quickly to keep up with the volatile crypto market. This implies that there must be both supply and demand for the cryptocurrency, allowing market participants to buy at a good price while still making a profit when they choose to sell.

Trading volume and how much a cryptocurrency has recently been bought and sold for, as well as investors' overall interest in the asset, can be useful when measuring an asset's liquidity.

Embrace volatility

The crypto market is notorious for its price fluctuations, but it's also known for its downturns. Volatility in crypto may be advantageous for traders who take advantage of these price fluctuations, but it can be challenging for long-term investors.

Although cryptocurrencies are a new asset, there is still a lot of hype and speculation surrounding it, which may lead to heightened volatility. While big price swings are typically considered a hazard, day-to-day volatility is common in the cryptocurrency market and can be an opportunity to make money.

Volatility is beneficial for cryptocurrency trading, but it's vital to understand your risk tolerance as an investor before diving in. It's also critical to keep a close eye on what's going on in the market by reading news items, blockchain updates, and historical charts regarding your positions.

Crypto market 101: only invest what you can afford

Possibly the most important crypto investment strategy: the golden rule of value investing is never to invest more than you're willing to lose. If you can't afford to lose all of your cryptocurrency investment, you can't afford to take the chance of investing in that currency.

In the cryptocurrency market, when establishing your risk tolerance you need to consider how much money you make and your current risk profile. And remember, outlining your investment objectives is as important as understanding your risk tolerance when you start investing.

When building your cryptocurrency investment strategy, Yubo Ruan, CEO and founder of Parallel Finance advises: "A person new to crypto should consider around 5% of their income to the crypto market, a crypto enthusiast should look for around 10% of their income allocated to crypto, and a DeFi expert or trader should probably consider 20% or more to crypto."

Consider a dollar-cost averaging approach

Traders can also look at incorporating a dollar-cost averaging into their cryptocurrency investment strategy. This involves making small regular investments instead of diving into a lump-sum investing strategy. Ideal for a long-term investment strategy, dollar-cost averaging is a very straightforward investment strategy, used across many markets.

Instead of trying to time the market and buy at the perfect moment or lump-sum investing, you invest a fixed amount of money regularly over time. This approach allows you to buy more digital currencies when prices are low and fewer digital currencies when prices are high.

By consistently embracing dollar-cost averaging over the long term, you can potentially reduce the impact of short-term market volatility and benefit from the average price over time. It's like taking small steps forward consistently, regardless of how the market is behaving, with the goal of growing your crypto investment gradually and building wealth over the long run.

Don’t be shy to take gains regularly

According to experts, investors should take profits from their crypto investment on a regular basis. When it's time to cash out, many crypto investors are confronted with the immediate decision of whether a cryptocurrency's price will fall or rise in the coming hours/days, experts, however, advise taking profits using a solid strategy.

While hodling (buying and holding for an indefinite amount of time) is a solid investment strategy, there are other ways you can maximize your profits. Consider selling a portion of an asset when the price is high, placing the funds in a stablecoin, and then repurchasing it with those same funds when the price drops again. This crypto investing strategy allows you to sell high and buy low, without using all your holdings.

Diversification crypto investing strategy

You know the saying “Don’t put all your eggs in one basket”. Well, when it comes to your crypto portfolio (and investment strategy) this couldn’t be more true. Building a reliable and profitable portfolio will require incorporating several different coins and crypto projects. Always do your own research before investing in digital currencies and be sure to adhere to an appropriate asset allocation for your risk tolerance.

Traders might like to create variety by investing in a number of established digital currencies as well as DeFi projects, coins associated with the Internet of Things (IoT), or non-fungible tokens (NFT). Diversification allows cryptocurrency investors to invest in both low-risk and high-risk assets. Diversification is also a favourable tool when engaging in cryptocurrency trading.

Trade with confidence

Another important element to consider when plotting your crypto investment map is where to keep them. Ensure that you store your cryptocurrencies in a safe location, preferably on a regulated platform that holds insurance. 

While the markets might be down, some crypto assets have proven over the years to be high performers, so consider this a beneficial time to accumulate “low-priced” digital assets. Follow these 6 crypto investing strategies above and reap the benefits down the line.

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Here we discuss what dividends are and how they work so you can make informed decisions when investing in dividend paying stocks. As a company, regular dividend payments create an incentive for shareholders to remain invested and keep the business growing, while for investors a dividend payment can increase the overall ROI and provide additional income streams. Learn the difference between stock dividends and cash dividends below.

What is a dividend?

Dividends are a way for companies to share their profits with shareholders. When a company earns profits, it can choose to distribute those profits back to its shareholders in the form of dividends. Dividend payments are typically made in cash and are usually paid out every quarter or semi-annually. Dividend paying companies can also choose to pay stock dividends, which is essentially dividend income paid out in shares.

By investing in dividend paying stocks, investors have the potential to earn regular income from their investments as well as benefit from capital appreciation when stock prices rise.

Dividend paying stock and the stock exchange

Investors in the stock market can earn returns in two ways, one is through an increase in the stock price from when they purchased it, and the other is through dividends. A company can decide whether they pay out dividends or not, and it's worth noting that not every company on the stock market does pay out dividends. The ones that do are typically mature ones. 

Companies might instead decide to use the profits to reinvest in the company, hire new employees, or expand their business. Start-ups and newer companies are more likely to take this approach as their goals are more aligned with growth. 

These payments are made in cash and generally occur at regular intervals, be it quarterly or annually. The amount per share, and when and how often dividends are paid out are determined by the company's board of directors.

Why a company might pay dividends 

When a company is profitable, it might do one of these three things with its profits:

• pay off debt
• chase a growth opportunity by reinvesting the money into the business
• pay dividends to their shareholders, attracting new ones and rewarding current ones

Companies pay dividends to reward their shareholders, generating a steady income stream, and increasing the overall value of their stock. Additionally, dividend payments can be used to attract new investors and signal financial strength. Only profitable companies will pay out dividends, and typically ones without significant debt. 

Stocks that pay dividends

Whether a company pays dividends is directly related to its goals and priorities. As mentioned above, younger companies typically use profits to reinvest in the business as the current goal is growth, while more mature, established companies opt to reward (and attract) shareholders. 

Growth stocks

Companies looking to capitalize on growth opportunities might make the wiser move by reinvesting their earnings instead of offering dividends to shareholders. 

Let's use retail as an example. If a company has just released a new product, it'd likely benefit more from hiring additional salespeople who can promote it than partaking in payouts for investors. In doing so, this allows the business to seek out maximum returns and drive the stock price up instead of giving away potential gains prematurely.

Mature stocks

As companies reach their peak and shift to a sustaining stage, they are more likely to prioritize dividend payments for shareholders over investing any additional funds into growth. 

Ultimately, leaders must determine what is best for the company's shareholders depending on its size and age: paying dividends, funding development opportunities, or debt reduction. The ideal choice depends heavily upon the organization’s state of expansion as well as other considerations.

Mutual funds and ETFs

Investors in mutual funds and exchange-traded funds can also tap into dividend income provided that the stocks pay dividends. These are typically paid out on an annual basis, however, this will be determined by the shareholder's brokerage account.

Timeline of dividend payouts

Whether a company pays out dividends at regular intervals or on a once-off basis, below are several dates to note with regard to the when and how of these payments. From the declaration date to the ex-dividend date to the payment date, these all play an important role for investors looking to benefit from dividend yield.

• The Declaration Date

When the Board of Directors announces the value, record date, and payment date for the upcoming dividend.

• Ex-Dividend Date

The ex-dividend date is the final date by which you can buy the stock and earn dividends. If you purchase stock after the ex-dividend date you are not liable to receive dividends. Stock purchases can sometimes take two days to clear so ensure that you do so at the right time. 

• Record Date

The date that you need to be an official shareholder in order to receive dividends. If your stock purchase is not settled by this date you are not liable for the payouts. The record date is typically one date after the ex-dividend date.

• Payment Date

When payments are made to all registered shareholders (as of the record date). Depending on the preferences specified in your brokerage account, the dividend could either be credited to you as cash (cash dividends) or reinvested back into the issuing business, distributed as stock dividends. 

How dividend payments can affect the share price

Due to dividends being paid out by profitable businesses, when a business does pay out dividends this sends a signal to the market that the business is doing well and could drive the stock price up. However, it could have the opposite effect too, driving the price down when there is no dividend payout. 

• when dividends drive the stock price up

Dividends can be a celebration of a company's profits and act as rewards to shareholders for investing in the company. This makes the stock more attractive to investors looking to earn passive income and will ultimately drive the price up. 

• when dividends drive the stock price down 

Companies generally pay dividends only when they are assured that the rate of return can be sustained, thanks to reliable profits. Therefore, if a company announces any reduction in this rate of dividend payment, it is likely because their business is encountering certain difficulties, sending out a negative signal instead.

In conclusion: what is a dividend payment?

A dividend is a payment that companies make to their shareholders, usually in the form of cash or stock. It's a type of reward for investors who have held onto the company's shares for a certain period of time. Usually companies pay dividends on a quarterly basis, often based on a portion of the company’s profits.

Because dividends are usually paid in cash, they can be a great source of income for investors. This extra income comes with less risk than other types of investing, which makes them attractive to many people who are looking for reliable returns on their investments. Dividend stocks also tend to outperform the overall stock market.

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In today's fast-paced world and ever-evolving financial landscape, cryptocurrencies have emerged as a revolutionary digital asset class. With their blockchain technology, decentralized nature, and potential for high returns, there’s no denying that cryptocurrencies have captured the attention of both novice and seasoned investors. 

In this article, we will delve into the advantages and disadvantages of cryptocurrency, shedding light on their accessibility, potential returns, and security, as well as the challenges they pose to beginners. If you’re curious about cryptocurrencies or are on the fence about whether they’re a viable addition to your portfolio, we hope the following can shed some light on the matter.

The pros of cryptocurrency

Accessibility and inclusivity

Cryptocurrencies have democratized financial systems, providing individuals around the world with access to previously inaccessible financial services. Powered by blockchain technology, their core aim is inclusivity.

By eliminating intermediaries like financial institutions, digital currencies offer greater financial freedom and empowerment to anyone, anywhere. This includes lower transaction fees and around-the-clock operations as cryptocurrency markets never close.

Additionally, the reduced transaction costs associated with cryptocurrency transactions make them an attractive alternative for cross-border payments, for both individuals and businesses alike. Transactions that previously took days to complete through financial institutions can now be executed in minutes for a much lower cost thanks to cryptocurrency markets and the ability to transfer funds directly.

High-risk, high reward

Cryptocurrencies are renowned for having volatile price movements, however, this isn’t always a negative thing. The volatile nature of cryptocurrencies presents unique investment opportunities. While this volatility comes with risks, it has also been the catalyst for the success stories of early adopters who have seen substantial returns on their investments. 

For beginners with an appropriate degree of risk tolerance willing to navigate the market carefully, cryptocurrencies can offer the potential for significant financial gains.

Security and privacy

Cryptocurrencies make use of cryptographic encryption to ensure secure crypto transactions and protect user privacy. The underlying blockchain technology provides a transparent and immutable ledger that safeguards against fraud and tampering thereby giving users greater control over their financial information. With the use of a private key system, retrieved when creating a crypto wallet, users have sole access to their cryptocurrency at all times.

Due to the nature of blockchain, cryptocurrency transactions are pseudonymous (and on some decentralized networks offering private transactions, anonymous) allowing for greater privacy when it comes to one’s financial matters. This means that when conducting Bitcoin transactions, for instance, the wallet address of the sender and receiver will be stored on the blockchain ledger as opposed to the names associated with the accounts.

The cons of cryptocurrency 

Volatility and risk

While discussed as a pro of trading cryptocurrencies, volatility can also be a con. The biggest one is that the unpredictable price fluctuations of a digital currency can be intimidating for beginners. Market uncertainty, driven by factors like regulatory changes and investor sentiment, can result in significant losses. 

Additionally, the lack of regulations in the cryptocurrency market makes it susceptible to scams and fraudulent activities such as money laundering, which can pose a risk to unsuspecting investors. Always ensure that you are using a reputable platform to trade and manage your digital currency.

Technical complexity

As cryptocurrencies operate on complex technological frameworks, it's often assumed that there is a big learning curve for beginners entering the crypto markets. Understanding concepts such as how a digital wallet works, what a private key is, and blockchain can be overwhelming initially but with our library of informative and easy-to-digest content, users can bypass the overwhelm. Our content is created to empower crypto enthusiasts looking to navigate the world of digital assets and decentralized currency.

Ensuring the security of cryptocurrency holdings and managing wallets require a certain level of caution and online security to prevent loss or theft. To bypass this obstacle Tap has created an easy-to-use app that allows for the management of multiple crypto and fiat currency in one hyper-secure place. 

Limited acceptance and adoption

Perhaps the greatest hindrance to the world of cryptocurrency is its slow-paced adoption. While the acceptance of cryptocurrencies is growing, it remains limited compared to traditional fiat currencies. 

Not all merchants and businesses accept cryptocurrencies as a form of payment, which restricts their usability in daily financial transactions. On top of this, the lack of mainstream recognition and regulatory frameworks presents challenges for the wider adoption of crypto transactions.

Conclusion

As a beginner exploring the world of cryptocurrencies, it's crucial to weigh the advantages and disadvantages before diving into the cryptocurrency market. While digital assets offer accessibility, the potential for high returns, and enhanced security and privacy, there are also the disadvantages of cryptocurrency such as risks related to volatility, technical complexity, and limited acceptance. 

When investing or trading cryptocurrency, it's essential to proceed with caution, conduct thorough research, and consider personal risk tolerance and investment goals. By staying informed and always conducting their own research, beginners can navigate the digital asset landscape effectively and make informed investment decisions.

Remember, cryptocurrencies are a rapidly evolving space, and continuous learning and adaptation are key to staying ahead. Stay informed, monitor market trends, and explore reputable resources to expand your understanding of digital assets and blockchain technology and their potential in the ever-changing financial landscape.

Having an investment IQ is crucial for anyone who wants to build long-term wealth and financial security. An investment IQ refers to the knowledge and understanding of the principles, strategies, and risks associated with investing in financial markets. 

With a strong investment IQ, you can make more informed decisions about how to allocate your money and build a diversified portfolio that can weather market volatility and generate solid returns over time. It will also help you to avoid common mistakes, such as chasing “trendy” stocks or trying to time the market. 

The investing quiz below is about testing and building your investment IQ, designed to give you the confidence and competence needed to manage your finances effectively and achieve your financial goals.

Question 1

Who famously said, "The four most dangerous words in investing are: 'this time it's different'"?

a) Warren Buffett

b) Peter Lynch

c) Benjamin Graham

d) Ray Dalio

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a) Warren Buffet

Warren Buffett famously said, "The four most dangerous words in investing are: 'this time it's different'" to highlight the risk of complacency and overconfidence among investors. The phrase is often used to describe the belief that the rules of investing have somehow changed and that the past is no longer relevant to current market conditions. 

However, as Buffett has emphasized, this mindset can lead investors to make risky decisions based on false assumptions, ultimately leading to significant losses. By recognizing that the fundamental principles of investing remain constant over time, investors can avoid being blindsided by unexpected events and make sound, informed decisions based on a long-term perspective.

Question 2

What is the most important factor to consider when evaluating a company's stock?

a) Its price-to-earnings (P/E) ratio

b) Its revenue growth rate

c) Its market capitalization

d) Its dividend yield

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a) Its price-to-earnings (P/E) ratio

The price-to-earnings (P/E) ratio is a widely used metric in evaluating a company's stock because it provides insight into a company's valuation and potential growth prospects.

A high P/E ratio may suggest that the market has high expectations for the company's future earnings growth, while a low P/E ratio may indicate that the market is not optimistic about the company's growth prospects. This makes P/E ratio a valuable tool in assessing the relative value of a company's stock and its potential for long-term growth.

Question 3

Who famously said, "In investing, what is comfortable is rarely profitable"?

a) Jim Rogers

b) Jack Bogle

c) Peter Lynch

d) John Paulson

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a) Jim Rogers

Jim Rogers meant that investors often seek the safety of familiar, comfortable investments, such as blue-chip stocks or low-risk bonds. However, these investments may not always offer the highest returns, and may even lead to missed opportunities for growth.

By stepping outside of one's comfort zone and exploring new, potentially riskier investments, investors can potentially reap greater rewards and achieve more profitable outcomes in the long run.

Question 4

What is the primary goal of diversification in investing?

a) To maximize returns

b) To minimize risk

c) To beat the market

d) To invest in a variety of industries

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b) To minimize risk

The primary goal of diversification in investing is to minimize risk by spreading investments across different assets and sectors. This strategy aims to reduce the impact of any single investment's poor performance by offsetting losses with gains from other investments. By diversifying a portfolio, investors can potentially reduce their overall risk and increase their chances of achieving long-term financial goals.

Question 5

Who famously said, "The stock market is a device for transferring money from the impatient to the patient"?

a) Benjamin Graham

b) Peter Lynch

c) Warren Buffett

d) Jack Bogle

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c) Warren Buffet

Warren Buffet said these words to emphasize the importance of patience and long-term thinking in investing. Many investors are often tempted to make quick trades or chase short-term gains, but these actions can be risky and result in losses. 

On the other hand, investors who are patient and willing to hold onto their investments for the long-term are more likely to see their portfolios grow in value. By recognizing that successful investing requires a patient approach, investors can avoid impulsive decisions and focus on achieving their long-term financial goals.

Question 6

What is the difference between a stock and a bond?

a) Stocks represent ownership in a company, while bonds represent a loan to a company.

b) Stocks pay interest to investors, while bonds pay dividends.

c) Stocks are guaranteed by the government, while bonds are not.

d) Stocks are generally considered lower risk than bonds.

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a) Stocks represent ownership in a company, while bonds represent a loan to a company.

A stock represents ownership in a company, while a bond represents a loan to a company or government entity. Stocks offer the potential for capital appreciation and dividends, while bonds offer fixed interest payments and return of principal at maturity. Stocks are generally considered riskier than bonds but also have greater potential for reward.

Question 7

Who famously said, "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1"?

a) Warren Buffett

b) Ray Dalio

c) Peter Lynch

d) John Paulson

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a) Warren Buffet

Warren Buffett said, "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1," to emphasize the importance of risk management and capital preservation in investing. By avoiding losses, investors can protect their capital and avoid the difficult task of having to recoup losses. 

Buffett's approach focuses on investing in high-quality companies with strong fundamentals, which are less likely to experience significant declines in value. By following these two simple rules, investors can potentially achieve greater long-term success and avoid costly mistakes in their investment decisions.

Question 8

What is a mutual fund?

a) A type of stock that pays dividends to investors

b) A pool of money from many investors that is used to buy a diversified portfolio of stocks, bonds, or other securities.

c) A type of bond that is issued by the government

d) A certificate of deposit (CD) issued by a bank

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b) A pool of money from many investors that is used to buy a diversified portfolio of stocks, bonds, or other securities.

A mutual fund is a professionally managed investment account that pools money from multiple investors to invest in a diverse range of assets. They offer diversification and professional management, making investing more accessible and convenient for individual investors.

Question 9

Who famously said, "The investor's chief problem and even his worst enemy is likely to be himself"?

a) Warren Buffett

b) Benjamin Graham

c) John Templeton

d) Jack Bogle

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b) Benjamin Graham

Benjamin Graham said, "The investor's chief problem and even his worst enemy is likely to be himself," emphasizing the role of emotions and behavioral biases in investment decisions. Many investors are prone to making impulsive decisions based on fear, greed, or other emotional triggers, which can lead to poor investment outcomes. 

By recognizing one's own tendencies towards emotional decision-making and by practicing discipline and rationality in investment decisions, investors can potentially achieve greater long-term success and avoid costly mistakes.

Question 10

What is dollar-cost averaging?

a) Buying stocks only when they are at their lowest price

b) Investing a fixed amount of money in a stock or mutual fund at regular intervals, regardless of market conditions.

c) Selling stocks when they reach their highest price

d) Investing a lump sum of money in a stock or mutual fund all at once.

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b) Investing a fixed amount of money in a stock or mutual fund at regular intervals, regardless of market conditions.

Dollar-cost averaging is an investment strategy where an investor invests a fixed amount of money at regular intervals, regardless of market conditions. This can potentially reduce the impact of market volatility on investment returns.

In conclusion

That concludes our investing quiz. Did you learn something new? As mentioned above, Investing IQ is essential for building wealth and achieving financial security. It involves understanding the principles, strategies, and risks of investing. With a strong investment IQ, investors can make more informed decisions, build diversified portfolios with an appropriate asset allocation that can withstand market volatility, and avoid common mistakes. 

Key factors to consider when investing include a company's P/E ratio and the importance of diversification to minimize risk. Famous investors like Warren Buffet and Jim Rogers have emphasized the importance of patience, long-term thinking, and avoiding losses.

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There is no denying that innovation in the technology sector has amplified the fast-paced world of finance, instigating constant transformation from brands that want to stay ahead. As with any fast-paced industry, many trends emerge as companies fight to remain relevant. One such trend we will be exploring is the increase in white-label cards and the companies facilitating the issuing of them. 

The process of issuing white-label cards has emerged as a powerful solution in the fintech space, offering customized payment experiences that cater to the unique needs of both businesses and customers. In this article, we will delve into the world of white-label cards, exploring its benefits, applications, and why it has become such a popular choice for financial institutions and fintech companies.

Understanding white-label cards

White-label cards, also known as private-label credit cards, involve the practice of businesses providing other businesses with the opportunity to offer customized credit or debit cards to their customers. Trusted financial institutions or fintech companies issue these cards on behalf of the businesses, while still reflecting the company's branding.

This approach allows businesses to incorporate their logo and branding on the private label credit card, granting the business ownership and control over the card's identity, all without the burden of creating or designing it from scratch.

By partnering with an established financial institution or fintech company, businesses can save time, effort, and resources by leveraging ready-to-use payment solutions instead of going through the costly and complex process of obtaining licenses from companies like Mastercard or Visa.

The shift toward customized payment solutions

Traditional banking systems have often been perceived as slow in adopting new systems and embracing innovation. As the demand for personalized payment experiences continues to grow, businesses are leveraging the opportunity to keep up with the evolving needs of customers seeking customized payment solutions and private-label credit cards.

Consumers today seek customized solutions that align with their preferences and reflect the brands they trust. This shift in consumer behavior has paved the way for white-label cards and in turn, card issuers, which offers businesses the ability to tailor payment solutions and private-label credit cards to their customers' needs. 

Third-party establishments are now offering streamlined payment solutions to these businesses, allowing them to leverage this new technology without needing to complete extensive and costly onboarding processes. Instead, the card issuing companies undergo this process and once accredited are able to provide full-service payment options to their clients.

With co-branded private-label credit cards, customers can unlock a multitude of rewards, bonus points, and exclusive discounts that can be utilized across various services, retailers, and online shopping platforms. By offering these enticing benefits, businesses are able to enhance the overall purchasing experience for their customers, cultivating loyalty and satisfaction.

Private-label credit cards can also come in the form of virtual cards, allowing users to make online payments or use services like Apple Pay with their unique account that essentially acts as a bank account.

The advantages and benefits of private label credit cards

The advantages of businesses utilizing the services of white-label card issuers are numerous, benefiting not only businesses but individuals too. 

For businesses

Firstly, white-label card programs offer a cost-effective alternative to building an in-house card program. By partnering with established providers, businesses can save on upfront costs, development time, and ongoing maintenance expenses.

White-label card programs also offer flexibility and scalability, making them suitable for businesses of all sizes. Whether you're a startup looking to launch a branded payment card quickly or an established business seeking to enhance your payment offerings, the processing of white-label cards can be tailored to meet your unique requirements.

From a branding perspective, white-label card programs provide businesses with heightened visibility and customer loyalty. By issuing branded payment cards, businesses can strengthen their brand identity and foster a deeper connection with their customers. Customizable card designs, exclusive rewards programs, and personalized customer experiences all contribute to building customer loyalty and market competitiveness.

For consumers

For individuals, white-label cards bring convenience and security. These cards can be seamlessly integrated into existing payment ecosystems, enabling individuals to make secure transactions while enjoying the benefits and perks offered by the businesses they frequent. 

Whether it's earning loyalty points, accessing exclusive discounts, or tracking expenses, white-label cards empower individuals with a seamless and tailored payment experience.

Addressing security and regulatory concerns

As with any financial solution, security and regulatory compliance are paramount. Financial institutions and fintech companies offering white-label card programs implement robust security measures to safeguard cardholder data and prevent fraudulent activities. 

Compliance with industry regulations, such as PCI DSS (Payment Card Industry Data Security Standard), ensures that customer data is handled securely. Additionally, data privacy and protection measures are put in place to give cardholders peace of mind when using white-label cards.

Examples of brands that have launched a private label card

Below are two examples of prominent brands that have embraced the white-label card trend in its early stages.

Square

In 2019, Square, a prominent payment processing company, partnered with Marqeta's white-label card processing platform to introduce the Square Card, a business debit card designed specifically for Square's sellers. This strategic move allowed Square's business customers to gain immediate access to funds, reducing their reliance on traditional banking services. 

By leveraging Marqeta's solution, Square not only expanded its product portfolio but also strengthened its relationships with its existing customer base.

Shopify

Another notable fintech player, Stripe, offers businesses APIs to issue their own credit cards, debit cards, and prepaid cards. Shopify, a renowned e-commerce platform, utilized Stripe's card issuing services to create the Shopify Balance Card, designed to help businesses start, grow and run their operations.

This card enables over 1 million of Shopify’s merchants to access their earnings instantly through a smart money management tool. The response to the launch was immediate and overwhelmingly positive, as over 100,000 small businesses in the United States embraced Shopify Balance accounts within the first four months.

Through the implementation of Stripe's white-label solution, Shopify added significant value to its merchants, setting itself apart from other e-commerce platforms.

Benefits reported in the case studies

Companies that have implemented the processes to issue white-label cards have reported several potential benefits, including:

Speed to market

Utilizing a white-label solution enables companies to launch card programs more swiftly. These solutions handle critical aspects such as regulatory compliance, technology development, card design, and manufacturing, which can be time-consuming and costly to manage in-house.

Cost reduction

White-label solutions generally require less investment than building a card-issuing infrastructure from scratch. Consequently, companies can save costs associated with development, maintenance, and compliance.

Enhanced customer engagement and retention

By offering a branded payment solution, companies can build stronger customer loyalty. Customers appreciate the convenience and exclusive perks that come with these cards, leading to higher engagement and retention rates.

Creation of new revenue streams

Companies can generate additional revenue streams by offering supplementary services through the card, such as cash-back rewards, premium subscriptions, or lending services.

What businesses should consider before implementing

Implementing a white-label card program requires careful planning and consideration. While the benefits listed above have been reported by companies that have implemented these strategies, these outcomes are not guaranteed. Businesses need to collaborate closely with their chosen white-label card issuer to ensure a smooth implementation process. 

This involves outlining the desired features and functionalities, integrating with existing payment infrastructure and systems, and training staff to manage the program effectively. Technical requirements, such as API integrations and data synchronization, should be addressed to ensure a seamless user experience.

Future trends and innovations in white-label card programs

Looking ahead, the future of issuing white-label cards holds great promise, driven by several key factors:

Market demand

The ever-evolving demand for financial services presents a significant opportunity. Regardless of their size or industry, businesses are increasingly seeking to expand their service offerings with payment and financial solutions. 

This trend aims to cultivate customer loyalty and explore new revenue streams. As a result, the demand for issuing white-label cards is expected to continue its upward trajectory.

Technological advancements

Fintech advancements, such as the widespread use of APIs and enhanced security measures, are simplifying the adoption of issuing white-label cards for businesses. As technology continues to progress, platforms issuing white-label cards are poised to become even more efficient, flexible, and secure, providing a seamless experience for both businesses and customers.

Developments in financial institutions' regulations

The regulatory landscape in the financial services sector is undergoing significant changes. Regulatory bodies worldwide are displaying a willingness to embrace fintech innovation, with some jurisdictions creating "fintech sandboxes" that facilitate controlled testing of new financial products. Should this trend persist, it could streamline the process for businesses to launch the issuing of white-label card programs.

The future of companies issuing white-label cards faces challenges primarily from increasing competition in the market. With more companies entering the space, businesses may experience pricing pressures and difficulties in standing out from the competition. To succeed, businesses need to differentiate themselves through innovation, personalized experiences, and strong partnerships.

They must also navigate regulatory uncertainties, address cybersecurity risks, and employ strategies to seize opportunities and overcome challenges in this dynamic sector. Continuous monitoring, agile decision-making, and a proactive approach are essential for businesses operating in the white-label card-issuing industry.

Tap’s white-label card solution

Tap’s business portfolio offers a streamlined card-issuing service to businesses of all kinds. Fully accredited, Tap is able to offer its partnering companies Mastercard-powered private cards for a fraction of the cost and time it would take if done directly with the financial services company.

In 2023, Tap provided Bitfinex, the longest-running and most liquid major crypto exchange, with a white-label prepaid card solution. By providing the behind-the-scenes financial infrastructure, the established exchange provided its clients with a unique payment solution and created a new revenue stream for the business.

With the necessary card-issuing license and already-established in-house processing system in place, businesses can quickly create their own white-label cards through Tap’s fiat and cryptocurrency-to-fiat funded card programs and other innovative services.

Conclusion

White-label card issuing is revolutionizing the payment landscape, with its rise signifying a powerful solution in the fintech space, delivering customized payment experiences that cater to the unique needs of businesses and customers. 

As technology continues to drive innovation, white-label card programs offer speed to market, cost reduction, enhanced customer engagement, and the creation of new revenue streams. However, businesses should carefully consider implementation factors and address potential challenges, such as regulatory compliance and cybersecurity risks. 

The future of private-label credit card issuing appears promising, driven by market demand, technological advancements, and regulatory developments. To capitalize on this trend, businesses must differentiate themselves in a competitive landscape and adapt to evolving market dynamics. 

Tap's white-label card solution exemplifies the potential of such programs, providing businesses with streamlined card-issuing services and opening new opportunities for revenue growth. As the industry continues to evolve, white-label card issuing will play a vital role in shaping the future of finance, enabling seamless and tailored payment experiences for businesses and individuals alike. 

While we’re super excited to move into our new era of financial inclusion, it seems a few are getting caught up in the nostalgia of the old Tap. We get it, Tap Global still sounds iconic, but as we embark on our new chapter, we’ve dropped the Global and are rolling as just Tap. Rest assured, while we embrace this new identity, we remain dedicated to the core values and exceptional services that have made Tap a trusted name in the industry.

As we forge ahead into the future, combining innovation with a touch of familiarity that we know you'll love, we invite you to join us. We’ve noticed, however, that some people are still using the old lingo in their Google searches, so in the spirit of leaving no man or woman behind, here are our answers to your burning questions. 

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Is Tap legit?

Yes, Tap is a legitimate company in the fintech industry. It is a well-known and reputable organization that provides services for buying, selling, spending, and storing crypto and fiat currencies. 

Through our user-friendly mobile app and commitment to enhancing security measures, we provide an all-rounded financial service that is not only licensed and regulated by the Gibraltar Financial Services Commission but also audited by PKF. 

Check out our website, app, and if you want to understand just “how legit” we are.  

Is Tap safe?

If there’s one thing to be sure of it’s that we take security measures very, very seriously. 

We employ industry-leading security practices and technologies to protect user data and transactions and have designed our mobile app with a particular focus on security, utilizing encryption and other security protocols to safeguard sensitive information.

However, it is important to note that no system is completely immune to risks and for that, we have implemented safeguards too. We not only encourage users to exercise caution and follow best practices such as setting strong passwords, enabling two-factor authentication, and regularly updating their devices and software, but we also have insurance policies in place should any of our multi-layered security barriers become compromised.

Is Tap available in USA?

Is Tap available in the US?

We appreciate your interest in Tap. Currently, our app's availability varies globally due to a myriad of factors that go into each market entry. While we strive to cater to as wide a user base as possible, it's important to us that we adhere to all regulatory and compliance measures, ensuring a secure and dependable platform for all our users.

As for your query regarding the United States, we don't have a definitive answer at the moment. Our focus is on delivering the best possible experience for our current users while exploring potential avenues for growth.

We always encourage our users to stay updated with our platform for any announcements.

While waiting for our launch in the land of the free, we are offering users an opportunity to join the Tap waiting list program and earn up to $100 in referral rewards for each friend you invite.

Is Tap a bank?

Technically referred to as a Fintech, Tap is a financial technology company that provides services related to crypto and fiat currencies. Through the licensed and regulated platform, users are able to buy, sell, spend, and store a wide range of crypto and fiat currencies.

Your Tap account also comes with a complimentary Tap prepaid Mastercard which allows you to spend any of your stored currencies at merchants and ATMs around the world. 

In short, Tap is a Fintech and does not offer traditional banking services like loans. 

Is Tap a good investment?

As a reputable fintech platform, we will never provide financial advice or make specific investment recommendations. The decision to consider Tap or any other investment opportunity should be based on your own thorough research, careful consideration of your financial goals and risk tolerance, and consultation with a qualified financial advisor if accessible. 

What we can offer is a guideline to use when evaluating an investment. It is essential to assess various factors, including the company's track record, market conditions, its leadership, and the potential risks and rewards associated with the investment. It is also important to consider that investments in cryptocurrencies can be volatile and subject to market fluctuations.

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Bonus question: will Tap be called "faucet" in the USA?

While not exactly a Google search, a fair question from Dave in the comments section: will Tap be called "faucet" in the USA? Despite the American version of the same device being referred to as a faucet, that answer is a definite no. Tap will remain true to its roots and still be called Tap when launching in the USA. 😉

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We are delighted to announce the listing and support of Balancer (BAL) on Tap!

BAL is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold BAL for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting BAL will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Balancer, a popular choice for traders and liquidity providers in the crypto space, is an AMM platform built on the Ethereum network that functions as a self-balancing weighted portfolio, liquidity provider, and price sensor. 

Balancer allows users to create liquidity pools of digital assets using smart contracts. These self-balancing index funds automatically adjust the proportion of assets in the Balancer pools to maintain their desired ratios, even as individual coin prices fluctuate.

The BAL token is the native utility token for the Balancer protocol, which is used to govern the platform and incentivize liquidity providers. The token was launched three months after the initial platform launch following the success of the COMP token on the Compound network. 

Get to know more about Balancer (BAL) in our dedicated article here.

Investing is a great way to grow your wealth and reach financial goals, but it is important to understand the potential risks as well as the rewards. Knowing how to identify capital gains and losses in investments is essential for any investor who wants to make informed decisions about their money. 

Gains and losses will determine whether or not an investment has been successful, so understanding them is critical to making wise choices when investing. Not only that but being able to recognize capital gains and losses can help investors decide when it’s time to get out of an investment before they incur too much damage. 

By learning to spot a gain or loss quickly, investors can protect their funds from unnecessary harm while reaping the benefits of investing. Here we break down how to calculate capital gains and losses.

The basics: how to calculate capital gains/loss

Investors will need to first identify the original cost or purchase price of the investment in order to calculate the percentage capital gain on an investment. You can get this from your broker, or any electronic trade confirmations you might have received. 

The next step is to subtract the original cost of the same investment from the selling purchase price (current value) to arrive at the gain or loss amount. If the amount is negative, this will indicate a loss while a positive amount will illustrate the profit. 

Then take this amount (the gain or loss) and divide it by the original purchase price. Multiply this by 100 and this will establish your gain or loss as a percentage.

Gain/loss ($ amount) = selling price - purchase price

Gain/loss percentage = [(selling price- purchase price) / purchase price] x 100

When the market value of an investment is lower than its cost basis, leading to a negative percentage return, it constitutes a loss on that particular asset.

When the market value or selling price surpasses your initial investment, you'll get a positive percentage that reflects this gain.

Why calculating gain/loss is important

Calculating the loss or gains you've made on an investment is crucial not only for staying on top of your financial situation but also when it comes to monitoring your investment strategy. If you are continuously making losses on an investment it might be time to change course, however, you will only know this by doing the calculations. 

Calculating the capital gains or losses on an investment as a percentage is important because it shows how much was earned as compared to the amount needed to achieve the gain.

Additionally, calculating the gains or losses of an investment are important when calculating any capital gains tax. Having a clear understanding of the financial situation will ensure that you are not underpaying or overpaying on capital gains tax. Be sure to check the capital gains tax rate in your jurisdiction as this will change from area to area.

Additional aspects to consider

As with anything, there are additional costs to factor in. For investments, this might be commissions, broker fees, taxes, etc. Below we look at how to factor in transaction costs, dividends, and trading fees.

Transaction Costs

Take your final gain/loss amount and subtract and transaction costs incurred from this amount.

Gain/loss ($ amount) = (purchase price - selling price) - transaction costs

Dividends

When calculating your gains, any additional income or distributions should be factored in. Dividends, whether from specific stocks or mutual funds, are the most common form of investment income and are paid to investors on a per-share basis. Not all shares pay out dividends so be sure to confirm this prior to making the trade.

Say an investor owns 100 shares and the company pays out $5 per share annually, this equates to $500 in dividends in a single year. Let's say that each share was bought at $20 and is now worth $40.

Gain/loss percentage 

= [((selling price - purchase price) + dividends) / purchase price] x 100

= [(($4,000 - $2,000) + $500) / $200] x 100

= 125%

Therefore, the dividends payout increased the gains on this investment by 25%. In this example, we have not included trading fees, commissions, etc.

Trading fees

Trading fees or brokerage fees are often an unavoidable aspect of trading and should be factored into your investment calculations. Using the above example, let's say the broker charges $50 in fees for its services and any transaction costs incurred. This amount will need to be subtracted from the original gain/loss amount before dividing it by the original purchase cost.

Gain/loss percentage 

= [((selling price- purchase price) - fees) / purchase price] x 100

= [(($4,000 - $2,000) - $50) / $2,000] x 100

= 97.5%

Here the trading fees dropped the investment gains by 2.5% from 100% to 97.5%.

Capital gains tax rate and mutual funds

Calculating capital gains or losses in a mutual fund is important for several reasons, but one key example is for tax purposes, known as capital gains taxes.

When an investor sells shares of a mutual fund, they may realize a capital gain or loss, which is the difference between the sale price and the purchase price of the shares. If the sale price is higher than the purchase price, the investor realizes a capital gain, and if the sale price is lower than the purchase price, the investor realizes a capital loss.

Capital gains are typically taxable, meaning that the investor must pay capital gains tax on the amount of the gain. However, if the shares were held for more than one year before being sold, the gain may be taxed at a lower rate known as the long-term capital gains rate, depending on the specific tax laws in your country. In contrast, capital losses can be used to offset capital gains, reducing the investor's overall tax liability.

Calculating capital gains or losses in a mutual fund can be more complex than for individual stocks, as mutual funds may buy and sell securities frequently, resulting in multiple tax lots with different purchase prices and holding periods. To accurately calculate gains or losses, investors must track each tax lot and determine the cost basis of each lot, which is the original purchase price plus any reinvested dividends or capital gains distributions.

Failing to properly calculate capital gains or losses on one's investments can result in overpaying or underpaying taxes, which can be costly and potentially lead to penalties. Therefore, it is important for investors to carefully track their mutual fund investments and accurately calculate their capital gains or losses for tax purposes.

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Kyber Network was launched in 2018 with the aim of being the main liquidity hub for the DeFi space. KyberSwap is the platform's interface, a decentralized exchange (DEX) aggregator that provides convenient and secure value exchange within the crypto market. Overall, the Kyber Network platform provides a smooth token-swapping experience while boosting earnings for liquidity providers. 

What is Kyber Network (KNC)?

Kyber Network is a decentralized multi-chain liquidity hub that provides instant, secure transactions on any decentralized application (dapp). Its main goal is to provide deep liquidity pools that offer the best rates for DeFi dapps, decentralized exchanges (DEXs), and other users. Kyber Network is built on the Ethereum blockchain and makes use of intricate smart contracts.

KyberSwap is its flagship DEX aggregator and liquidity platform. KyberSwap sources liquidity from multiple DEXes to provide the best swap rates for traders in DeFi. KyberSwap is decentralized and permissionless, allowing users to conduct transactions on any of its supported 12 chains, including Ethereum and Binance Smart Chain. 

Kyber Network seeks to solve the liquidity issue in the DeFi industry by allowing developers to build products and services using the platform's protocol, while KyberSwap acts as the trustless trading platform that also provides rewards for liquidity providers. With over $1 billion in total volume from over 1 million user transactions, Kyber Network is a growing player in the DeFi space.

Kyber Network's governance structure is managed by holders of its native Kyber Network Crystals (KNC) token through a decentralized autonomous organization (DAO) called KyberDAO. This allows KNC token holders to have a say in the network's decision-making processes and contribute to its development and growth.

Who created Kyber Network?

Kyber Network was founded by Loi Luu, Victor Tran, and Yaron Velner in 2017. The project created 226 million KNC tokens, most of which were sold to buyers and investors during its initial coin offering. This raised Kyber Network 200,000 ETH (roughly $50 million at the time) to launch the platform. The protocol went live on the Ethereum blockchain in February 2018, with Vitalik Buterin as an advisor. 

In October 2017, the Kyber Network burned over 10 million KNC tokens, bringing the maximum supply down to roughly 215 million KNC.

Victor Tran is the current CEO of Kyber Network, while Loi Luu is the current Chairman. Yaron Velner stepped down as CTO in October 2019 but remains as an advisor. The Kyber team has over 50 employees globally, and its headquarters is in Singapore, with a large presence in Vietnam.

How does Kyber Network work?

Kyber Network is a decentralized protocol that enables users to instantly trade tokens without intermediaries. KyberSwap is the user interface for Kyber Network, with two protocols: Classic and Elastic. 

Classic features the Dynamic Market Maker (DMM) protocol and the Amplification (AMP) programmable price curve. Elastic is a tick-based AMM (automated market maker) with concentrated liquidity, allowing liquidity providers to specify the price range for adding liquidity and earn fees for swaps processed at a specific price. 

KyberSwap also has features like the Reinvestment Curve, multiple fee tiers, JIT Protection, and liquidity mining farms. The Kyber Network aggregates liquidity from various sources into a single liquidity pool on its network, and anyone can provide liquidity. The protocol is integrated into dApps (decentralized applications), DeFi (decentralized finance) platforms, and crypto wallets, enabling users to utilize any Kyber Network-supported token and allowing platforms to receive payment in their preferred token. 

The Kyber Network protocol relies on reserves to provide liquidity for its decentralized exchange platform, KyberSwap. When a user initiates a trade, the platform searches for available reserves to find the best available rate being offered by takers. 

There are three main types of reserves: Price Feed Reserves (PFR), Automated Price Reserves (APR), and Bridge Reserves. PFRs use price feeds to calculate conversion rates using smart contracts acting as an alternative to market makers, APRs provide rates for available crypto assets through smart contracts, and Bridge Reserves access other decentralized exchanges to deepen liquidity. 

Previously, reserves were required to participate in the Kyber protocol by staking KNC to pay for network fees, but a recent upgrade removed this requirement, making it easier for reserves to participate. Kyber Network collects fees in ETH, with a portion of them going to reserves based on the amount of liquidity they provide.

The reserves model is a critical component of KyberSwap, enabling the platform to offer fast and competitive token trading services to its users.

What is the Kyber Network Crystal (KNC) token?

Kyber Network Crystal (KNC) is the native coin for the platform and acts as both a utility and governance token. Users can stake it to vote on upgrades and policies or delegate their tokens to other validators and earn a portion of the block reward. 

Users who stake KNC receive rewards in ETH, and network fees paid in KNC will be burned over time, gradually reducing its supply. KNC holders can participate in the DAO and governance proposals by staking their assets or delegating their vote. 

They can also earn liquidity-mining rewards by staking their tokens in eligible Rainmaker farming pools or participating in various activities such as Trading Contest, Gleam Giveaway, and AMAs.

How can I buy KNC tokens?

Tap's mobile app offers a user-friendly platform for users to purchase, trade, and safely store Kyber Network's KNC token in an integrated wallet. The app supports a variety of cryptocurrencies and fiat currencies, which can be used for buying and selling KNC tokens. The app also makes use of a smart router which finds the best Kyber Network price at any given time.

Additionally, users can securely store not only KNC tokens but also other digital assets on the app. Downloading the Tap mobile app provides users with access to verified cryptocurrencies and fiat wallets, allowing them to take advantage of a wide range of investment opportunities.

Crypto wallets are a critical tool for anyone looking to use, store, and manage crypto assets. Crypto wallets come in various forms, with different features and security options that cater to the needs of different users. Finding the right crypto wallet is essential if you want to get the most out of your cryptocurrency investments. 

No matter what type of crypto wallet you choose, it’s important to do your research before making a decision since each one comes with its own set of advantages and disadvantages. It’s also important that you keep your private keys safe so no one else can access them, this will ensure that only you have control over your funds and crypto assets. 

What is a crypto wallet?

A crypto wallet is a digital wallet that stores manages and facilitates the use of various cryptocurrencies. In order to store and use crypto assets, one needs a digital wallet. Unlike traditional wallets that simply hold your cash or cards, crypto wallets facilitate transactions as well as store your funds. 

Each crypto wallet has a public and private key which are unique alphanumeric codes that grant the user access to the funds. Public keys are wallet addresses to which other users can send you cryptocurrencies, similar to your bank account number, while private keys are akin to a pin number and should not be shared with anyone. 

In essence, crypto wallets act as secure interfaces for users to access, store and transfer funds across different blockchain networks. In essence, it’s like a bank account for digital currencies. 

The different types of crypto wallets

Crypto wallets can be divided into two main categories: hot wallets and cold wallets. 

Internet connectivity is the defining factor between hot wallets and cold wallets. Hot wallets are connected to the internet, making them less secure but much more user-friendly. On the other hand, cold wallets are stored completely offline and do not require any internet connection. This provides a higher level of security, which makes them ideal for individuals who plan on storing their crypto assets long-term. 

Each of these categories can be further broken down into varying wallets. Under the hot wallets umbrella, there are desktop wallets, mobile wallets, and web wallets, while under the cold wallets umbrella, there are hardware and paper wallets. 

Hot wallets

As a hot wallet is easy to set up and constantly connected to the internet they are ideal for users looking to make daily or frequent transactions. Typically with hot wallets, funds are quickly accessible and they tend to be very straightforward to operate. Below we look at the three main types of hot wallets: desktop wallets, mobile wallets, and web wallets. 

Desktop wallet

A desktop wallet is a cryptocurrency storage solution that allows users to store, send, and receive crypto assets from their personal computers with the crypto wallet stored on the device’s hard drive. 

It is generally considered to be a secure way of managing crypto assets as it does not require the user to store their funds on an exchange, instead giving control over the private keys associated with the hot wallet to the user.

The downside however is that it may be vulnerable to computer viruses should someone gain access to your desktop. 

Mobile wallet

Mobile wallets are digital crypto wallets that allow users to manage their cryptocurrencies directly on their mobile devices. These crypto wallets are very convenient and secure compared to carrying large amounts of money around or keeping it in a traditional bank account.

Mobile wallets provide users instant access with more control over their funds and are particularly useful for quick payments that require a scan of a QR code. When downloading this type of hot wallet ensure that you use a link from the website directly to ensure that you are not falling for a fake wallet. This goes for all hot wallets and cold wallets listed here.

Mobile wallets are typically the best crypto wallets for users actively spending their crypto assets.

Web wallet

Web wallets are hosted by third-party services, which act as custodians for users' private keys. Web wallets provide an easy way to manage digital currencies, allowing users to quickly send and receive payments without having to download or install any software. 

Additionally, web wallets offer enhanced security features such as two-factor authentication and multi-signature transactions. With these features in place, web wallets can provide a secure environment for storing cryptocurrencies regardless of the user's level of technical expertise, an added bonus for hot wallets.

Cold wallets

Cold wallets are hack resistant and therefore are considered the best crypto wallets for hodlers. In order to facilitate trades, cold wallets need to connect to the internet in order to trade directly from their cold storage devices.

Hardware wallet

Hardware wallets store private keys on a physical device like a USB drive or an external hard drive. A common example of this is the Ledger Nano X, while secure it retails for roughly $150.

These crypto wallets provide maximum security but require more effort to set up and use compared to other types of crypto wallets. They typically are also more expensive as one needs to buy a physical device. 

Paper wallet

Finally, paper wallets are simply printed copies of public/private key pairs which allow you to securely store funds offline without having any digital device at all. While these are considered to be the best crypto wallets in terms of security, if the paper gets damaged then the funds are lost.

Finding the right crypto wallet for you

In order to find the right crypto wallet you will need to establish what specifically you wish to do with your funds. If you are looking to hold them long-term, cold wallets are by far the more secure solution, however, if you are making payments and using cryptocurrencies in your day-to-day life, a hot wallet or even a mobile wallet might be better suited to your needs. 

Many crypto users utilize a combination of two or three, using the more secure crypto wallet option to hold their funds long-term while also having a portion of funds in a preferred hot wallet allowing them quick and easy access to their funds when they need them. 

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Generational wealth is not just about building a large stash of money, it's also about how you pass it on. Once you've paid off your debts and established various forms of income, the next step is to start to build generational wealth that can surpass your lifetime.

In this article, we explore what generational wealth is and how to start building it. As with any investment account, the earlier you start the better the end result. While building generational wealth is a great place to be, we encourage you to get your current financial situation in order and build your financial education before you start exploring this concept.

What is generational wealth?

Generational wealth, also called family wealth, is the transfer of assets from one generation to the next within a family. This may include multiple streams of income from financial investments like stocks and bonds, as well as valuable assets, real estate, and family businesses. These assets continue to generate financial value as opposed to just being a lump sum of cash.

It's important to note that when an individual is born into wealth, that wealth was created by a generation before them, whether that be decades or centuries before. This financial success can help eliminate financial struggles for generations to come, or if not handled correctly, could be eradicated by just one generation.

The key factor when it comes to passing on generational wealth

Creating wealth is not the hardest part, the hardest part is educating the next generations on how to manage this wealth. According to the Williams Group wealth consultancy, 70% of wealthy families lose their wealth by the second generation while a whopping 90% lose it by the third. 

Generational wealth is not about creating enough money to allow your children’s children to sit around all day, it’s about passing wealth down for generations to come to make the world a better place and empower the family tree. It's not about materialism or consumerism, it should be about financial education and philanthropy. Consider how important generational wealth is to you before embarking on building wealth for future generations.

The key steps to building generational wealth

There are two key components that need to come together in order to build generational wealth: firstly, building this wealth, and secondly, passing on this wealth. In this first section, we will cover the former. 

Creating generational wealth isn't going to happen overnight. It's a journey that necessitates time, purposeful planning, and commitment. There are no shortcuts when it comes to creating generational wealth, it's a marathon, not a sprint, no matter which financial assets or stock market you might choose to invest in.

It involves not only taking care of your personal finances through proper planning but also educating the next generation about financial literacy and personal finance. This legacy wealth could go on to fund a child's education or college education, or be used to build an impressive real estate portfolio or invest in family businesses.

It's not about inheriting a trust fund at a young age so that one can simply enjoy life, it's about learning how to be financially fit, understanding how to create wealth, and hopefully building a secure financial future for the next generation.

1. Build a solid financial foundation

First and foremost, you will need to build a solid financial foundation before you start to build generational wealth which means you need to get out of debt and establish an emergency fund (three to six months' worth of expenses).

Do not progress to step two until this step has been completed. In order to build wealth one needs a firm foundation, so set yourself up to weather any storms that might come your way before you embark on the journey to create generational wealth.

2. Start allocating 15% of your income to a retirement fund

Now that you are out of debt and have established an emergency fund, allocate at least 15% to your retirement fund. In this step, consistency is key. Determine what kind of investment account (whether using new-age financial assets or the stock market) you wish to use, consult a financial advisor if necessary, and start allocating 15% of your gross income to this tax-advantaged retirement account.

If you consistently do this for two to three decades you will have built enough wealth to live comfortably after retirement and pass some on. 

3. Build slowly and consistently

As we mentioned earlier, building generational wealth is a marathon, not a sprint. This is a long-term commitment that requires no rush and no pressure. Commit to consistently building your wealth for the rest of your life. 

4. Communicate with your family and educate them about money

Discuss your financial goals with your children and use the opportunity to share your knowledge about wealth. If your wealth creation involves investing in real estate, building a family business, or any avenue that requires active participation, ensure that you keep your descendants in the loop and provide them with the wisdom, knowledge, and skills to maintain and ideally continue to build generational wealth. 

By discussing money frequently, being open about mistakes you have made with finances, and demonstrating smart financial decisions in your own life, you can teach your children about the importance of managing their money wisely.

5. Officiate things by making them legal

When it comes to building generational wealth, a financial advisor is optional but including a lawyer is essential. This step ensures that the generational wealth you spent your lifetime building is distributed accordingly.

Ensure that you go through the necessary legal proceedings to make sure you're not only on the right side of the law but also that the generational wealth is passed on as per your intentions. 

How to pass on generational wealth

Now that you've put the processes in place to start to build generational wealth, the next step is to put in place the necessary steps to ensure a smooth handoff. Here are three key steps to ensure that your generational wealth remains a blessing and not a chaotic curse for those left behind. 

1. Create a will

No matter what earthly possessions or family wealth one has, a will is essential for everyone 18 years and older. This legal document outlines how your assets are distributed after you die. While consulting legal counsel is advised, there are plenty of templates and methods online for writing and establishing your will. Regardless of whether you create generational wealth or not, this step is important.

2. Establish an estate plan

Estate planning entails organizing your possessions and determining how they should be handled after you have departed. A will is a very important component, but if your net worth exceeds $1 million, consulting a professional could be wise to guarantee that all the details of your estate plan are in order. 

Expert estate planners can help with more complex situations, like a family business or intricate family wealth, as well as demonstrate tactics for diminishing federal taxes so you don't pay any more than necessary.

3. Put together a legacy drawer outlining your family wealth

Crafting your legacy drawer should be on everyone's to-do list, it is a place where you store important documentation and items that will become invaluable for your family (and family wealth) should anything happen. While there are many documents to consider keeping in this secure location, here are a few must-haves:

• Your will and estate plan
• Financial account information
• A copy of your monthly budget
• Life insurance policy
• Tax returns
• Account passwords
• Personal letters to loved ones
• Funeral instructions

Create lasting generational wealth

If you want to create lasting generational wealth and blessings for generations to come, it's time to put your head down and get started. Consider this a long-term journey that with the right investments and education will empower generations to come.

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There are plenty of certainties in life, and trading is no different. Whether you’re a novice trader or a professional, one of the few guarantees when it comes to any market is that there will be bear markets, and there will be bull markets.

It’s easy to get caught up in the highs of a bull market, but when it comes to navigating bear markets one needs to keep their wits about them. Below we outline 8 trading strategies to take with you through times of dropping price movements. 

Only invest what you’re willing to lose

The golden rule of investing: never invest more than you can afford to lose. It might sound grim, but the reality is that no market or asset is ever guaranteed to succeed so be wise with your investments. Whether in a bear market or a bull market, this golden rule should never be skipped.

Once you’ve set up your budget and determined your living expenses (rent, groceries, insurance, etc), only then can you establish how much money you can invest. Bear markets and price corrections can have a significant impact on your finances, never take a chance with your living expenses or by underestimating the importance of establishing what your risk tolerance is.

Embrace dollar cost averaging

Economic cycles will inherently go up and down, and a great way to minimize risk is to implement dollar cost averaging into your trading strategy. Ideal for traders with a 10+ year timeline, dollar cost averaging involves buying the same asset on a consistent basis no matter the price. With the varying price differences, investors typically accumulate more for less over a long period of time. 

This dollar cost averaging strategy is particularly useful during bear markets when the asset prices are typically undervalued, which leads us to the next point. 

Find undervalued assets

During a bear market, asset prices are often described as being pummeled and underpriced, presenting an excellent buying opportunity for the savvy investor. The trick here is to know what you’re looking for and to conduct adequate research. In a bear market, both good and poor companies have hammered down asset prices, ensure you do your research to determine the one from the other. 

Bear markets tend to also be a great time to accumulate more from the companies/assets you are already invested in, accumulating the assets for less than they’re worth. This is a common strategy used in the stock markets when stock prices are undervalued.

Market timing can mean everything whether you're in bear market territory or not, so make sure you have adequate information before engaging in declining markets.

Branch out with diversification

Bear markets are a great time to implement an asset allocation strategy and broaden your investment horizons. When asset prices are low (even during market volatility) it creates an excellent buy-in opportunity for investors to spread their portfolios across alternative investments such as bonds, different asset classes, cash, and stocks.

Regardless of whether it's a bear market or a bull market, always consider your risk tolerance and financial goals, and as always conduct your own research, as you explore different markets and determine whether they would be a good fit for your portfolio. 

Explore non-cyclical stocks on the stock market

Non-cyclical or defensive stocks are a type of investment that usually do well even when the overall stock market is down. These stocks are from companies that make things like toothpaste, toilet paper, and soap, items that people still use even during tough times and market downturn. They usually pay regular dividends and have stable earnings, which can make them a good choice for investors who want to reduce risk during stock market decline.

Treat bear markets like you would a bear

During a bear market sometimes the best thing to do is exactly what you’d do if faced with a real bear in the woods: play dead and don’t make any sudden moves. In the financial sense, this means moving your money to safe places and not making any sudden, irrational buy/sell trades.

This typically involves putting more of your money into safe investments that you can easily access, like certificates of deposit (CDs) or U.S. Treasury bills. By doing this, you can ride out the market's ups and downs without losing too much money

Leave your emotions out of it

On Wall Street, there's a saying that 'The Dow climbs a wall of worry,' which means that even when things seem bad, the stock market can keep going up. Applicable across all markets, as an investor, it's important to not let your emotions guide your decisions. Sometimes big problems turn out to be not so bad in the long run. Fear can make it hard to think rationally, so it's best to stay calm and carry on with your investment strategy.

Short selling

If prices are falling, there are ways to make money from the situation. One way is through short selling, where you borrow shares in a company, ETF or asset and sell them with the hope of buying them back at a lower price. Another option is using put options, which increase in value as stock prices fall and limit your potential losses. 

Inverse exchange-traded funds (ETFs) also let you profit from a falling bear market by increasing in value when major indexes go down. These can be easily purchased from your brokerage account without requiring margin accounts or advanced trading skills.

Not ideal for beginner traders, only implement these strategies if you feel confident to do so or have contacted the necessary professionals. 

In conclusion

Bear markets are an inevitable part of trading, and it's essential to be prepared with strategies to minimize losses and even profit from the situation. By only investing what you can afford to lose, embracing dollar cost averaging, finding undervalued assets, diversifying your portfolio, exploring non-cyclical stocks, leaving emotions out of your decisions, and potentially using short selling or inverse ETFs, you can weather the storm of any bear market. 

It's crucial to remember to stay calm, do your research, and seek professional advice if needed. With these strategies in mind, you can navigate a bear market with confidence and come out on top.

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We are delighted to announce the listing and support of Compound (COMP) on Tap!

COMP is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold COMP for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting COMP will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Built on the Ethereum blockchain, the Compound protocol provides liquid money markets offering services such as lending and borrowing. Supporting a number of crypto assets, the Compound protocol allows users to deposit crypto into lending pools providing capital for borrowers on the network and allowing them to earn interest in return.

The COMP token is the Compound platform's native token which mainly serves as a governance token, with a built-in incentive for users holding the token. Holders of COMP tokens are able to vote on all important decisions pertaining to the protocol, including interest rates. Much like the cTokens, COMP tokens are based on Ethereum’s ERC-20 token standard.

Get to know more about Compound (COMP) in our dedicated article here.

One of the largest and oldest dapps in the DeFi (decentralized finance) space, Compound Finance has built a reliable reputation among traders looking for lending and borrowing services. Compound operates using its native ERC-20 COMP tokens which provide community governance as well as other services.

What is the Compound protocol (COMP)?

Built on the Ethereum blockchain, the Compound protocol provides liquid money markets offering services such as lending and borrowing. Supporting a number of crypto assets, the Compound protocol allows users to deposit crypto into lending pools providing capital for borrowers on the network and allowing them to earn interest in return.

After depositing funds into the lending pool, lenders are issued "cTokens" (cETH, cDAI, cBAT) which represent the deposit made. These tokens can then be traded or transferred within the platform, or redeemed for the original cryptocurrency deposited. This process is conducted by smart contracts and operates entirely automatically with interest rates algorithmically assigned based on the activity in its liquidity pools. 

The Compound protocol also uses the ERC-20 native COMP token which is distributed to traders that utilize the Compound market, i.e. borrowing, withdrawing or repaying the asset. COMP tokens are distributed each time an Ethereum block is mined proportional to the interest collected from each asset. The COMP cryptocurrency grants COMP token holders governance and voting rights.

Following notable investments from the likes of consulting firm Bain Capital Ventures, Andreessen Horowitz, and Polychain, the platform has grown and established a strong reputation within the decentralized finance space and the greater crypto world.

The history of Compound and who created it

Compound was founded in 2017 by Robert Leshner and Geoffrey Hayes, who both previously held high-profile jobs at PostMates, an online food delivery service. Leshner holds the CEO position while Hayes remains the CTO at Compound Labs, Inc, the software development firm behind the Compound protocol. Compound Labs is an open-source software development firm creating cutting-edge tools, products, and services for the innovative DeFi ecosystem.

In 2018, the platform raised $8.2 million from notable venture capital firms Bain Capital Ventures and Andreessen Horowitz. A year later, Compound raised an additional $25 million from many of the same investors along with new ones including Paradigm Capital.

How does Compound work?

The Compound protocol leverages the power of Ethereum smart contracts and cryptocurrency incentives to benefit lenders and borrowers. Lend and borrow services make up the two main use cases for the platform, as outlined below.

Interest rates on Compound are dynamically managed based on the supply and demand of particular crypto assets within the coin pools. The higher the liquidity, the lower the interest rate. Prices are determined by using the Open Price Feed based on Chainlink's oracles which collect the data from numerous exchanges.

In order to use the Compound DeFi protocol to engage in lending or borrowing services, you will need to connect one of the supported crypto wallets. Currently, the app supports MetaMask, Ledger, WalletConnect, and Tally Ho. The interface has been designed to be user-friendly and easy to navigate, perfect for traders new to the space as well as seasoned DeFi participants.

Lending/supplying

The process of lending on the Compound platform is called supplying. Lenders are able to earn interest on their cryptocurrency by depositing cryptocurrencies into the Compound platform. Borrowers are also required to deposit digital assets into the protocol, which can earn interest but cannot be withdrawn for the duration of the borrowing period.

The platform currently supports roughly 20 crypto assets, from Basic Attention Token (BAT) to Wrapped Bitcoin (WBTC), with Ethereum (ETH) and a number of stablecoins (DAI, USDC, and USDT) being the most actively used.

Once users lend assets to the platform, they are issued with ERC-20-based cTokens corresponding to the cryptocurrency deposited (i.e. cETH, cDAI, etc.). These tokens confirm the liquidity providers' deposits and offer a number of other incentives.

Borrowing

After depositing a particular cryptocurrency into the decentralized finance protocol, users are assigned a "borrowing capacity". This is a limit set in USD based on the rate of the crypto asset which is determined by the Open Price Feed. When depositing multiple cryptocurrencies, the borrowing capacity will factor this in.

Users can also borrow cryptocurrencies supported by the protocol based on a coin's collateral ratio. For instance, if DAI has a collateral ratio of 70%, users can borrow DAI up to 70% of the total amount deposited. Typically, collateral ratios are between 60% and 85%.

Similar to the lending process, when borrowing cryptocurrency borrowers are issued cTokens. So when borrowing DAI for instance, borrowers will be issued cDAI tokens, with the interest payable based on these tokens as well.

Withdrawing

After paying back the borrowed debt, users can redeem their deposited funds. Without having to deal with other traders, the protocol seamlessly utilizes a dynamically maintained set of liquidity pools. The platform also does not charge any withdrawal penalties or hold users to minimum investment times.

When users redeem their funds, the cTokens issued are added to the accumulated interest and converted back to the originally deposited cryptocurrency. These funds can then be withdrawn into the connected wallet.

Account Health

The Compound platform uses a system called "account health" to establish whether accounts are in risk of liquidation. This system measures the sum of the deposited funds against the total amount borrowed. If a user's account health falls dangerously low, the account could be liquidated, and some of the collateral forfeited.

This process is managed in a decentralized way where platform users act as liquidators and monitor for risky accounts. Should they liquidate an account they earn a portion of the liquidated funds.

What is the COMP token?

The COMP token is the Compound platform's native token which mainly serves as a governance token, with a built-in incentive for users holding the token. Holders of COMP tokens are able to vote on all important decisions pertaining to the protocol, including interest rates. Much like the cTokens, COMP tokens are based on Ethereum’s ERC-20 token standard. 

Compound tokens have a total supply of 10,000,000 tokens, of which over 70% of Compound coins are in circulation (at the time of writing).

How can I buy COMP tokens?

With Tap's mobile app, users can easily acquire COMP tokens and store them in the integrated wallet with confidence, either to hold long-term, sell, trade or use on other DeFi platforms. Not only does Tap provide an effortless way of trading digital assets, but also a safe space to keep your investments secure over long periods of time.

In order to access the mobile app users will need to download the app and create an account. After a quick verification process, users have access to a wide range of vetted cryptocurrencies as well as fiat wallets where funds can be safely stored or used in the real world. Whether you're looking to buy Compound or sell Compound coins, Tap provides a seamless solution to your crypto needs.

In the age of neobanking, it seems counter-intuitive to be locked into a long-term relationship with an establishment that hasn’t changed in 300 years. With outdated processes and tedious hoops to jump through, it’s high time you said goodbye to the traditional financial institution and treated your finances with the love and respect they deserve.

From an outdated bank to an even more outdated credit union, you don't need to settle for financial institutions that make the rules and take your money. It's 2022, you have options. And we know, the process to switch from your current bank is tedious, but with the technological advancements of today, that's a thing of the past.

You deserve better from your financial institution

Knowing you deserve better is the first step toward claiming back your power. It’s time to say goodbye to high, complicated fee structures and hello to transparency, minimal fees, and knowing exactly where your money goes. 

As the world rapidly transitions into a more digital space, why keep the management of your finances stuck in the dark age? Fintechs are making big strides in providing the masses with new-age financial services with faster processing times and more transparent fees. Your financial livelihood deserves better.

Neobanking vs traditional banks

Let’s take a moment to define neobanking. Neo comes from the Greek word “new”, literally meaning “new bank”. These financial technology companies (fintechs) offer users access to financial services through online digital platforms, an online bank of sorts. While not all fintechs are created equal, the majority require special licensing and provide something similar to a checking account with web and mobile services.

A traditional financial institution refers to the age-old establishment that in all likelihood is the same bank that our grandparents used in their days. Innovation in the traditional bank sector has been stagnant over the last several decades, and little has changed in these money-making corporations. They also tend to have deep political, financial, and social roots in their countries of operation. Not to mention poor customer service.

• Neobanking companies are largely like a digital online baking providers, whereas traditional banks have a physical presence alongside online banking services.
• Fintechs offer standard services such as checking and savings accounts, money transfer and payment services, low to no overdraft fees and some financial education tools (budgeting tools, etc). On the other hand, traditional credit unions present a much wider selection of options like lines of credit, financial advisors, credit cards, etc.
• While all traditional banks are fully licensed and chartered, many fintechs do own different as significant licenses such as EMI licenses. In some cases, in order to insure their products, neobanks do choose to partner with a primary bank.
• Many banks focus more on developing strong, lasting relationships while neobanks typically provide more flexible accounts than just a simple bank account, which require less paperwork and can be used worldwide.
• Online banks tend to overwhelm clients with a variety of complicated fees while neobanks charge much lower fees for their services, including for most : no monthly maintenance fee.
• While banks provide you with a face to face agent, fintechs do not, however they still provide quality customer service representatives ready to help you online with anything you might need. In short both boast different yet great excellent customer service.

Fintech do provides a new-age approach with fewer fees and more transparency, but with all, if not most, of the bells and whistles that your current banking platform provides. 

Since the Metaverse x GameFi project launched in early 2022, GensoKishi Metaverse has taken the cryptosphere by storm, already listed on several top exchanges. The MV token pairs with another token to power GensoKishi Online, the blockchain-based play-to-earn (P2E) game that allows users to create, buy and sell unique characters, weapons and maps. The blockchain-based innovation has leveraged the already existing MMORPG world of Elemental Knights.

What is the GensoKishi Metaverse?

GensoKishi Online, Genso for short, is the blockchain-based play-to-earn reincarnation of the Nintendo Switch and Playstation game, Elemental Knights. The game boasts an impressive 13-year history with 8 million downloads and simultaneously connects users using a range of devices around the world through its fully-functioning 3D metaverse.

While the original game allowed users to create their own skins, characters, maps, and weapons, with the addition of blockchain technology all these attributes are now registered as NFTs. This allows for the buying, selling, and trading of unique elements.

The massively multiplayer online role-playing game (MMORPG) centers around players roaming freely through the immersive fantasy world, immersing themselves in quests with other participants. Players can bring their own characters and monsters to life through the creation process, while investors are able to purchase digital land and construct buildings.

Genso is groundbreaking in its incorporation of MMORPG elements and NFTs, giving players unprecedented control over their virtual assets. This revolutionary fantasy game enables gamers to take ownership of the items they have created or earned through skillful participation, making for a uniquely immersive experience.

Who created the GensoKishi Metaverse platform?

The development team behind the project has a brilliant track record in the existing MMORPG world having developed online games and prominent MMORPG titles for over two decades. Maxi Kuan is the CEO behind GensoKishi Metaverse, having previously been a Japanese representative for the Chinese blockchain media company Blockcast.it and ran a blockchain-focused startup consultancy in Japan. 

World-renowned video game composer Tokuhiko Uwabo and former NHN PlayArt CEO Masaki Kato have since joined the GensoKishi Metaverse team as advisors. And in February 2022, the platform held an NFT auction which lead to SoulZ, a Japanese NFT collection, signing on as a partner and creating the first space within the metaverse. 

How does the GensoKishi Metaverse work?

Through the game, players are able to create and monetize unique in-game items such as characters, weapons, skins, and maps. Expressed as NFTs, this allows for the tracking of ownership and free trade of these elements, and as such create an expansive digital in-game economy within the GensoKishi Metaverse.

Thus, any content players create or acquire belong to them and can be traded with other gamers, leading to a commerce-oriented gaming experience.

Players can also purchase plots of land on which they can build a wide variety of structures, from spaces designed for the battling of monsters to social interaction areas. As the owner, one can monetize this digital property by charging admittance fees to visitors.

Additionally, individuals and teams have the opportunity to earn rewards by completing quests. As mentioned earlier, the GensoKishi Metaverse MV tokens work alongside another cryptocurrency, ROND, to fuel the gaming experience.

• MV token: The GensoKishi Metaverse Token (MV) is the main governing token of GensoKishi Online and empowers holders to cast their vote on proposed alterations to the game. By purchasing or staking MV tokens, players can not only receive ROND rewards but also be granted privileges such as constructing new in-game worlds, costumes, and other content.
• ROND: The GensoKishi Metaverse is powered by ROND, the primary in-game cryptocurrency. This currency can be subdivided into miniRONDs to use when making payments or transactions within the game. From going to different worlds and upgrading weapons and costumes, everything requires miniRONDs as payment. 

Additionally, you also have the chance to earn extra miniRONDs by either lending out acquired items to other players or conquering various obstacles set forth for you.

MiniRONDS can then be converted back to ROND and traded on secondary-market exchanges.

GensoKishi Online is built on the Polygon (MATIC) blockchain, while the MV and ROND tokens are ERC-20 based. In order to play, players will need to connect a crypto wallet and create an account on the platform. They will then be able to customize their new avatar and begin completing quests.

What is MV?

While ROND acts as the GensoKishi Metaverse in-game currency, the MV token acts as the governance token primarily used outside of the game. The governance token provides users with voting rights on future developments to the platform, while also providing discounts on in-game items such as land, cosplay equipment, monsters, and non-player characters (NCPs). 

The GensoKishi Metaverse platform is currently developing staking capabilities for the MV token, which would allow stakers to earn ROND proportionately to the amount staked and length of time. 

How can I buy the GensoKishi Metaverse token?

Grow your digital currencies portfolio or simply gain access to the game with ease by buying MV tokens through the Tap app. The fully regulated platform offers a simple and reliable crypto trading experience, allowing users to securely buy, sell, trade, and hold a wide range of digital assets including the GensoKishi Metaverse token.

Tap makes it easy for users to purchase their MV tokens, whether using crypto or fiat currency. After you store them securely in your integrated crypto wallet, you’re ready to transfer the tokens over to Genso and start playing.

Buy / sell GensoKishi Metaverse tokens or simply check the price of GensoKishi Metaverse by downloading the app and completing the quick account verification process. 

In this article, we're covering what transaction fees are, and taking a look at which cryptocurrencies offer the lowest transaction fees.

While long-term traders are unlikely to get affected by transaction fees, short-term traders and people actively using cryptocurrencies are often plagued with excessive fee structures.

This complaint has led to layer 2 solutions, where transactions can most quickly and cost-effectively be executed, as well as new blockchain platforms entirely (as was the case when developers migrated away from Ethereum due to high transaction costs).

What are transaction fees?

Transaction fees are fees paid to the miner of the network to execute the transaction. While some networks differ in how they operate, transaction fees are consistent across the board. Looking at Bitcoin as an example, when a user sends BTC the transaction is entered into a pool of pending transactions known as a mempool. 

The miner will then pick up a batch of transactions and validate them, checking to see whether the original wallet does in fact have the funds to send and if the wallet addresses are valid. Once the transaction is executed, the data relevant to the transaction is added to a block, which is added to the blockchain chronologically. 

As compensation to the miner for their time and electricity, they earn a small crypto transaction fee from each transaction as well as a reward for adding the block, known as a miner's reward. This process also ensures the safety and integrity of the network.

When the networks are very busy, the cost of sending a transaction is increased. Users can then choose to add in a higher crypto transaction fee in order to prioritise their transaction in the mempool. 

Transaction fees for smart contracts are based on how much electricity will be needed to complete the task. Typically, transaction fees on smart contracts are much higher.

Generally, the terms transaction fee and network fee can be used interchangeably. They both refer to the transaction fee necessary by the network for the transaction to get processed.

Exchange fees refer to something else entirely. Exchange fees are fees charged by the exchange in order to conduct the service. Be sure to check before conducting a transaction on an exchange as you might be required to pay a transaction fee (or network fees) as well as exchange fees.

How to pay less for transaction fees

A transaction fee is imperative to your transaction getting executed so it cannot be avoided entirely, however, there are ways to reduce the amount you need to pay.

Transaction fees increase when the network is busy, so sending your transaction while the network is quieter is a great way to reduce the transaction fee. Typically the busier periods are during business hours in the United States. 

Look out for the Lightning Network for Bitcoin and layer-2 scaling solutions for Ethereum as these will provide a cost-effective solution to high transaction costs on those networks.

Which cryptocurrency has the lowest average transaction fee?

Let's take a look at some of the most popular cryptocurrencies and the average transaction fee associated with their platforms. 

XRP - $0.0002 per transaction

Developed by Ripple Labs, XRP is optimised for fast, affordable cross-border payments, with a focus on serving financial institutions and remittance providers. Thanks to its unique architecture, XRP has cemented its status as a key player in the payment processing space.

XRP's minimal costs and 4-second transaction times make it a preferred choice for users and institutions alike. 

Solana (SOL) - $0.00025 per transaction

Solana’s transaction fees cost just fractions of a cent ($0.00025), with complex transactions also coming in incredibly cheap. The network stands out for its lightning-fast transactions, typically wrapping up in about 2.5 seconds. Thanks to its scalable design, Solana can handle many transactions simultaneously, making it a hit for dapps and big blockchain projects.

This efficiency, coupled with its rapid speed, has made Solana a favourite among both developers and users, and a permanent feature in the top 10 biggest cryptocurrencies based on market cap (currently number 5).

Litecoin (LCH) - $0.0025 per transaction

Litecoin stands out as one of the cheapest crypto options out there, costing around $0.0025 per transfer. As an early pioneer in the space, Litecoin was designed with fast, affordable payments in mind, borrowing and refining Bitcoin's underlying technology. Litecoin's speedy 2.5-minute transaction times add to this appeal.

The minimal fees on Litecoin are a huge plus, with its efficiency and speed making Litecoin an attractive choice for those seeking a cost-effective crypto.

Bitcoin Cash (BCH) - $0.01 per transaction

Bitcoin Cash makes it onto the list with an attractive $0.01 average transaction fee. As a Bitcoin offshoot, BCH was engineered for faster, more affordable transfers via larger block sizes. 

The cost-effective fees on Bitcoin Cash have made BCH a viable option for those looking for a low-cost market entry and equally impressive low-cost transaction fees. 

Dogecoin (DOGE) - $0.04 per transaction

Dogecoin, born in 2013 as a playful take on crypto, has surprisingly become a significant player in the crypto space. Despite its lighthearted meme-inspired origins, Dogecoin's enthusiastic community and celebrity endorsements have propelled it into the mainstream. 

Its low $0.04 average transaction fees and fast 1-minute transaction times make it practical for frequent micro-transactions like tipping and donations, blending fun and function.

Trade smart, trade with Tap

Users can trade all the tokens mentioned above with equally low exchange fees directly on the Tap app. Adding to the cost-effective nature of the platform, it also offers heightened security and added convenience. It's time to trade smarter, download the Tap app and get started today. 
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Playing an important role in the adoption of Web3, Enjin provides a platform of software products designed to allow anyone to harness the power of NFTs (non-fungible tokens) through the development, trade, monetization, and marketing of blockchain assets. 

What is the Enjin platform?

The Enjin platform is an ecosystem of interconnected, blockchain-based gaming products designed for individuals, game developers and businesses to create, manage and trade virtual goods such as digital art, games, or virtual marketplaces using the Ethereum blockchain. Enjin aims to provide users with the tools to implement smart digital solutions for blockchain games within the gaming environment.

Through the platform's software development kits (SDKs) and APIs, users can build digital assets as well as seamlessly integrate them into their games and applications. 

Under the Enjin umbrella is the Enjin Network, a community gaming platform that allows users to create websites, chat, and host virtual stores. Over the course of a decade, the Enjin platform has accumulated over 20 million users.

Powering the ecosystem is the Enjin Coin (ENJ), a token used to back the value of NFTs and other assets minted on the platform. When an asset is minted it locks ENJ tokens into a smart contract and effectively removes the tokens from circulation.

It’s also worth noting that Witek Radomski, Enjin's co-founder and the brainchild behind the ERC-1155 Ethereum token standard, wrote the code for the first non-fungible token (NFT). By utilizing its cutting-edge technology, Enjin is revolutionizing the future of gaming and digital assets.

Who created Enjin?

Enjin was originally founded in 2009 as a gaming community platform by Maxim Blagov and Witek Radomski. Blagov took on the responsibility of being CEO and in charge of the platform's creative direction while Radomski took on the role of CTO, leading the technical development of the platform's products.

Following Radomski's interest in Bitcoin in 2012, the platform explored incorporating blockchain technology into its business model and embraced the world of tokenized digital assets.

Radomski went on to write the ERC-1155 token standard in June 2018, a token standard used for minting both fungible, semi-fungible and non-fungible tokens using the Ethereum network. This token standard is a critical building block in the platform’s design.

In 2017, the Enjin platform launched an initial coin offering (ICO), raising $18.9 million through ENJ token sales. A year later the project went live and in September 2019, the Enjin Marketplace was launched.

How does Enjin work?

The primary goal of the Enjin network is to facilitate the management and storage of virtual goods for games, anything from in-game currencies to unique in-game items. So, how does Enjin work? The process of creating and destroying these tokens involves five steps, as outlined below. 

• Purchase
  Developers purchase Enjin Coin. 
• Minting
  In-game items are designed and effectively minted with the appropriate amount of ENJ locked into a smart contract.
• Utilization
  Players use these tokens within the game.
• Trading
  Players trade the tokens between fellow players or on the internal or external marketplace.
• Melting
  Players sell the tokens for Enjin Coin, referred to as melting. The token is destroyed and Enjin Coin is released from the smart contract.

SDKs (software development kits) come into play here, with kits designed to fulfill certain functions, such as facilitating a payment platform or being wallet-focused. These kits are designed to minimize costs and simplify the process of creating these virtual goods. APIs (application programming interfaces) work alongside the SDKs to integrate these virtual goods (digital assets) into the game.

The Enjin platform utilizes JumpNet which is integrated with other products in the ecosystem, such as the Marketplace, Enjin Beam, and the Enjin Wallet to allow for gas-free transactions for ENJ and NFTs.

The Enjin ecosystem encompasses the Enjin smart wallet that allows players to store and trade their in-game items with ease. The Enjin wallet is designed to connect all the features, from managing inventory to conducting transactions and selling these tokenized digital assets for ENJ. 

What is the Enjin Coin (ENJ)?

Enjin Coin (ENJ) is the native token of the Enjin ecosystem. Built on the Ethereum blockchain and compatible with multiple gaming platforms, the Enjin Coin is an ERC-20 token that allows the in-game items created on the platform to be traded with real-world value. The ENJ token has a maximum supply of 1 billion coins.

The token also allows developers to mint these digital goods. The process requires the users to lock Enjin Coin (ENJ) into a smart contract that automatically assigns value to the in-game item. Players that later use these items can use them in the game, trade them or sell them for ENJ, equivalent to the original minting cost. Once sold, the item is destroyed (known as melting) and the ENJ that was locked in the smart contract is released to the seller.

How can I buy Enjin Coin?

Anyone can tap into the Enjin ecosystem by acquiring ENJ tokens through the Tap mobile app. Simply create an account and complete the verification process in order to gain access to your unique Enjin wallet, from where you can buy, trade and sell Enjin Coin. 

Fully licensed and regulated, Tap provides a secure and convenient means of managing your funds, allowing users to manage and store both crypto and fiat currencies in one location. With a wide range of supported currencies and services, Tap is revolutionizing the financial space.

Take advantage of the power of Enjin Coin on the Tap app - the ultimate platform to buy, sell or hold ENJ. With seamless integration and an intuitive interface, trading Enjin tokens has never been easier. Stay up-to-date with the latest market trends and keep your portfolio on track by monitoring the Enjin Coin price in real-time. 

Lido's liquid staking service allows users to tap into the benefits of staking rewards without compromising their tokens' liquidity. Lido aims to empower users to put their staked assets to use, supporting a number of PoS cryptocurrencies. The platform offers a liquid staking solution that provides users with a system that allows them to earn rewards on staked coins while also receiving a tokenized version of the staked coins which can generate returns in other DeFi protocols. 

What is Lido (LDO)?

Lido DAO is an innovative decentralized autonomous organization that offers a liquid staking solution on the Ethereum 2.0 blockchain as well as other Proof of Stake (PoS) platforms like Solana (SOL), Polygon (MATIC), Polkadot (DOT), and Kusama (KSM). 

By initially locking up assets, Lido DAO allows users to liquefy their holdings and use them for other protocols - what we call 'liquid staking'. Through this yield-generating process, users are able to receive a tokenized version of their staked tokens on a 1:1 basis when depositing their crypto tokens into the network, which can then be used to participate in other DeFi on-chain activities to gain additional yields.

Since its establishment in December 2020, shortly after ETH 2.0's release, the platform has been overseen by the Lido DAO, with several key members including P2P Capital, KR1 and Semantic Ventures. 

Since then, Lido DAO has gained an impressive reputation for its liquid staking capabilities, and now boasts over $13 billion in staked assets. Its core focus is on Ethereum, yet its horizons are expanding to other blockchain networks including Terra and Solana, both of which launched staking capabilities in 2021, as well as several other layer 1 PoS blockchains.

Lido DAO stands apart from other liquid staking protocols due to its decentralized nature and attractive annual percentage rates (APR). The platform offers 4.8%, 8.1% and 6.6% APR for staking Ethereum, Terra and Solana respectively.

Who created the Lido DAO platform?

Lido was co-founded by Kasper Rasmussen and Jordan Fish, also known as CryptoCobain. Behind the Lido DAO are a number of individuals and organizations that are well-regarded within the DeFi space. 

Lido DAO members include Semantic VC, Chorus, ParaFi Capital, P2P Capital, Libertus Capital, Terra, StakeFish, Bitscale Capital, StakingFacilities, and KR1. Several of the highly esteemed angel investors include Stani Kulechov of Aave, Banteg of Yearn, Will Harborne of Deversifi, Julien Bouteloup from Stake Capital and Kain Warwick from Synthetix.

How does the Lido Protocol work?

Liquid staking services through the Lido protocol allow users to earn block rewards from staking PoS assets while addressing issues like illiquidity, complexity, and centralization. Lido DAO offers an innovative solution that allows users to gain access to the typically locked-up tokens and lowers the barrier to entry and costs associated with staking requirements.

When staking tokens on the Lido DAO platform, users tap into a staking pool smart contract that stakes the tokens on the relevant PoS blockchain. Users will also receive a digitized version of their deposited funds (stAsset tokens), that can be used to bring in rewards from not just the original protocol but also other DeFi protocols and decentralized applications (dapps), like lending and yield farming. This allows users to maximize their earnings potential.

The staking pool smart contract manages the users' deposits and withdrawals, determines the staking reward fees, delegates funds to node operators, and mints and burns tokens as needed.

How tokens can be used

Let's look at ETH for example. With Lido staking, users are rewarded with 1:1 stETH tokens that represent their deposited ETH. Users can use their stETH balance just like regular ETH to earn staking rewards in real-time, updated on a daily basis. There are no lock-ups or minimum deposits when using Lido.

Lido DAO's liquid staking protocol involves three distinctive processes: staking, minting and DeFi.

Staking

Users can choose any amount of ETH to stake, which is then deposited onto the platform. 

Minting

In return for the staked ETH, Lido issues on a 1:1 ratio minted or Lido-native liquid representatives of ERC-20 coin (stETH). 

DeFi

Users can make use of these stETH tokens across the DeFi ecosystem to earn greater yields bypassing the need to "lock up" staked coins. 

With the Lido DAO platform, users can stake any amount of ETH to the Beacon Chain without having to comply with typical lock-up requirements. For providing this staked ETH service, a 10% fee is collected by Lido for each process.

How validator rewards are earned from staked assets

Validator rewards can be earned through staked PoS tokens on the platform. In order to stake ETH, become a validator and earn rewards for validating payments on the Ethereum platform, users are required to stake a minimum of 32 ETH tokens. To bypass this minimum requirement and still earn rewards, Lido allows users to stake a fraction of this amount and earn a proportionate amount of block rewards.

Users will then deposit ETH into the Lido smart contract and receive the same number of stETH (an ERC-20 token representing the deposited ETH). These tokens are minted once the funds have been received and are burned when the users withdraw their original ETH. The staked funds will then be distributed to the multiple validators (node operators) on the Lido network and deposited into the Ethereum Beacon Chain from where they will be secured in a smart contract (and inaccessible).

The Lido DAO will then assign, onboard, support and enter the validators' addresses to the smart contract registry before being given a set of keys for the validation. All ETH that users have deposited on the Lido platform will be split into groups of 32 ETH among the active Lido node operators who will use this public validation key to validate transactions. The block rewards will then be shared proportionately.

This distribution process of sharing staked assets eliminates single-point-of-failure risks common among single-validator staking. 

What is LDO?

The Lido DAO token (LDO) is an ERC-20 token, the native utility token to the Lido protocol used to reward users. The token has a total supply of 1 billion tokens and serves three primary functions. 

The LDO token grants holders with governance rights in the operations of the Lido DAO, as well as the removal or addition of Lido node operators and helping with the management of fee parameters and distribution. 

The more LDO coins a user holds, the more powerful their vote. 

How can I buy the Lido DAO token and earn staking rewards?

If you're looking to expand your digital currencies portfolio, Lido tokens can be a great addition. The Tap app provides an easy and secure way for anyone with an account to add these tokens to their portfolios in no time, making it one of the most effortless trading experiences around.

Utilize the Tap app to access the Lido ecosystem by purchasing LDO tokens with either crypto or fiat currencies. Users can then choose to store their LDO tokens securely in the integrated crypto wallet or transfer them to the Lido platform and engage in the platform's earning potential. All you need to do to get started is download the app and create an account. 

When learning about cryptocurrencies you're likely to come across the term "smart contracts". First popularised by Ethereum, smart contract functionality is now a regular feature among platforms that allow developers to build decentralized apps (dapps).

In this article, we're breaking down what smart contracts are, how smart contracts work, and where they came from.

What is a smart contract?

A smart contract is a digital agreement that executes based on the terms of the agreement. The terms are predetermined and written into the smart contract's code, ensuring that no edits can be made once the smart contract has been executed. As the smart contract is written using blockchain, the transactions are transparent and irreversible.

Due to the nature of these digital agreements, they can be carried out by two anonymous parties without the need for a third party/ central authority.

Smart contracts generally require payment for their creation, as the execution of the smart contract will require energy from the network. Ethereum smart contracts, for example, require gas fees in order to be created and executed, which are paid directly to the platform. The more complex the smart contract, the higher the gas fees. Other smart contracts will require payment in the digital assets utilized by the platform.

Smart contracts work because they are automated and utilize powerful decentralized technology.

Benefits of smart contracts

First and foremost, the biggest benefit of smart contracts is that they are trustworthy as they cannot be tampered with, nor can a third party intervene. So smart contracts cannot be hacked as they use blockchain technology to encrypt the information.

Smart contracts are cost-effective as they eradicate the middleman and save the users both time and fees that would otherwise come with them. Once certain criteria are met, smart contracts automatically execute, requiring no time delays, paperwork, or room for error. A smart contracts accuracy is determined by the accuracy of the coding used to create the smart contract.

many industries including insurance companies are using smart contracts to streamline and automate their business processes, including fulfilling legal obligations and managing financial transactions. By utilizing if-then statements, the insurance company can create smart contracts that automatically execute the insurance payment to policyholders when certain conditions are met. This can be used to process claims, pay out benefits, and manage other contracts in the same way.

How do smart contracts work?

Smart contracts are digital agreements built using blockchain. Developers looking to create a smart contract will need to utilize a blockchain platform that provides such functionality.

Determine agreement terms

Developers will first need to determine what the agreement terms are as well as the desired outcome. For example, one might create a smart contract that stipulates when 0.5 BTC is received by a certain digital assets wallet the code to a keypad on a property will be sent to the renter.

Determine conditions of agreement

Establish the conditions of the smart contract such as payment authorization or shipment receipt.

Write code

Using a smart contract writing platform, developers will write the code. This will then be sent to another team, such as an internal expert, for security testing.

Smart contracts deployed

Once approved, the code is then deployed on the blockchain platform. The smart contract will then be alerted to any event updates.

Smart contracts executed

Once the terms of the agreement are met and communicated to the blockchain through an oracle (a secure streaming data source), the smart contract will then automatically execute the desired outcome.

One might liken a smart contract to a digital vending machine. The terms of the agreement are understood by both parties involved prior to the transaction. Through an automated process, one party will input the initial criteria (the funds) and the predetermined outcome will be executed automatically (the selected goods will be released).

History of smart contracts

Smart contracts were first conceptualized by American computer scientist, Nick Szabo, the creator of the first digital money "Bit Gold", in 1998. He created them with the intention to digitize transaction methods to replace traditional contract and defined these smart contracts as "computerized transaction protocols that execute terms of a contract."

"These new securities are formed by combining securities (such as bonds) and derivatives (options and futures) in a wide variety of ways. Very complex term structures for payments can now be built into standardized contracts and traded with low transaction costs, due to computerized analysis of these complex term structures."

Szabo's concept remained purely theoretical until the invention of public blockchain technology, which provided the necessary infrastructure for storing and executing smart contracts. In recent years, smart contracts have been used in a variety of industries, including finance, real estate, and supply chain management. While there are still some security concerns with the technology, the use of smart contracts could further increase the efficiency and reliability of transactions.

Conclusion

Smart contracts are digital a contracts between two parties that are automatically executed once certain conditions are met without time delay. Built on the blockchain, smart contracts are immutable, irreversible, and transparent, and require no third parties. Smart contracts are written in varying programming languages dependant on the blockchain network on which they are created. This technology ensures that the smart contracts are implemented correctly.

This year has seen a gradual but significant improvement in cryptocurrency prices from the chilly crypto winter of 2022. Factors such as cooling inflation and a more relaxed macroeconomic situation have given crypto the space to turn upward and settle in the green. While the road to recovery (to 2021 prices) might be long, there is definite hope on the horizon.

Before we dive in, let’s first review the previous crypto bull runs associated with halvings. When it comes to bull runs, there is a historical pattern of prices rising several months after a Bitcoin halving. This effect tends to take place twelve to eighteen months after the halving event.

This article tends to focus heavily on Bitcoin as the cryptocurrency holds a lot of weight in the industry. Bitcoin market trends tend to dictate the way forward for many other altcoins, while this isn’t black and white, it tends to be the norm. When Bitcoin enters a bull run, so too do other cryptocurrencies, and when the Bitcoin price is down, the same applies. 

What is a Bitcoin halving?

Satoshi Nakamoto, the creator of Bitcoin, strongly believed that scarcity creates value. When designing Bitcoin, it was decided that there would only ever be 21 million coins, and while these can be broken down into small decimal places, there is no changing that maximum supply. 

In order to leverage the scarcity and ensure an even distribution of new coins entering circulation, Nakamoto designed a halving mechanism. The mechanism ensures that the currency remains deflationary, controls how many new coins enter circulation, and plays little havoc on the market. 

To understand how a halving works, one must first understand how Bitcoins are mined. Through a decentralized network, new transactions are entered into a mempool while they await confirmation. Miners will then compete to verify them by completing a complex cryptographical puzzle. The first miner to successfully complete the puzzle is awarded the job of verifying the transactions as well as earning the rewards. 

Once all the transactions have been verified they are executed and the data from each transaction is added to a block, which is added to the blockchain in chronological order. The miner then receives a transaction fee from each transaction as well as a miner's reward for adding a new block to the blockchain. 

Every 210,000 blocks, roughly four years, this reward is halved, making it a significant factor in what is known as the halving experiences. In 2009, the miner's reward was 50 BTC, today it is worth 6.25 BTC. While the price tends to increase substantially, the reward is automatically halved at these intervals. Written into its code, the halvings are automated activities that cannot be altered.

Reviewing previous bull runs

Bitcoin's first mini bull run

The first recorded "bull run" in the crypto sector took place in April 2011 when the price of Bitcoin rose 3,000% over the space of three months. After reaching $1 in April 2011, the coin went on to reach $32 in June. However, this price increase was short-lived as the price returned to $2 in November.

The next year the cryptocurrency underwent its first halving in November, ending the year between the $13 and $14 price mark.

2012 halving / 2013 bull run

In the first few months after the halving, the price rose from $13 to $30. By April, one Bitcoin was trading for $100, its then all-time high, spurring interest from curious outsiders. By November, twelve months after the initial halving, Bitcoin broke the $1,000 barrier. This too was short-lived as the price dropped to around $530 a month later.

2016 halving / 2017 bull run

The next halving took place in July 2016, when the price was trading at around $600. After years of the Bitcoin price bouncing between $100 and $900, it finally hit the $1,000 mark again in January 2017, six months after the halving. By mid-May, the price had doubled to $2,000, and by December of the same year, the price sky-rocketed to just under $20,000.

Sparking a Bitcoin frenzy, the digital asset became a hot topic in mainstream media and many market participants hopped on the bandwagon. This also sparked widespread development within the industry, with many altcoins being launched and what has become known as the "ICO craze". Due to the quick ascent of this nascent technology, user adoption and regulation became prominent topics of discussion in financial and regulatory circles.

By December 2018, just a year later, the price had shrunk to $3,236, while in December 2019, Bitcoin was trading at $7,200.

2020 halving / 2021 bull run

In 2020 the world was struck by the Covid-19 pandemic, causing unprecedented damage to economies around the world. While Bitcoin and other digital currencies took a knock, the industry proved to be much more resilient than most other traditional markets.

Dropping almost 50% to lows of $4,900 in March 2020, the price gradually recovered to $9,000 in May when the next halving took place. The upward price trend continued its climb, reaching $29,374 in December, another all-time high.

In the early months of 2021, the Bitcoin price doubled in value reaching $64,000 in April. By July, it was trading around $30,000 again before skyrocketing to $68,000 in November. By January 2022 the price had corrected to $35,000 before the market was faced with several unfavorable factors.

Markets around the world took another hit when Russia declared war on Ukraine, sending the price of everyday items including fuel soaring. Governments increased interest rates to the highest they've been in decades, and global supply chain issues caused by the pandemic continued to drive upset.

With the world in financial uncertainty, not to mention the demise of several cryptocurrency networks and exchanges, many participants pulled their money from the crypto markets as well as tech-based stock investment markets. This saw the price of Bitcoin dip below the $20,000 mark for the first time in two years, causing widespread uncertainty and speculation.

2022 was officially declared a crypto winter and while prices rose roughly 29% year-on-date, 2023 wasn’t the promised land that crypto enthusiasts had dreamed of. 

Are we headed toward the next crypto bull run?

Price increases aside, the Bitcoin Fear and Greed meter observed ( at the time of writing) a hopeful incline from a state of “Extreme fear” to a “Greed” greed rating. This measure of market sentiment is a vast improvement from 2022 and, alongside expert analysis, indicates that the cryptocurrency has moved into the accumulation phase. According to the Wyckoff market cycles, this is the prerequisite to the mark-up phase and indicates the end of a bear cycle.

The digital asset market remains volatile and unpredictable, and one cannot predict what might happen in the coming months or even years. What we do know is that historically bull runs have succeeded halvings, so grab your popcorn we should be in for an interesting ride. 

We know the cryptocurrency market has a reputation for being volatile, however, these last few months have been particularly nail-biting for many investors. As markets swing in wild directions, some have made impressive gains while others have lost out. In this article, we explore whether crypto markets will ever overcome volatility and what one can do to gain financial stability in turbulent times. 

What causes the markets to be so volatile?

Due to a lack of central authority, the markets more accurately present investor sentiment, rising and falling as a result of the actions of people actively buying and selling. While volatility has a bad name and is certainly a hinder in terms of mainstream payment method adoption, it is valued by traders as it poses an opportunity to make big gains. Traders have created full-time jobs that benefit solely from the crypto market's volatility.

Regulatory frameworks are likely to positively affect the volatility prevalent in the digital currencies markets, but until that is implemented let's explore the biggest factors behind the volatility.

Entirely digital

Due to cryptocurrencies being digital and not backed by any commodity or real-world currency, their prices remain dependent on supply and demand. Essentially relying on faith: the prices will rise based on people believing in the product and accumulating more, while prices will drop when investors lose faith and sell. The markets remain volatile as investors are not concrete in their positions.

In its infancy

Cryptocurrencies have been around for just over a decade, a relatively short time for an asset of such influence. As the technology remains in its earlier years there is still plenty of development that needs to take place. So while Bitcoin has built an incredible market capitalization, there is still a long way for the cryptocurrency to go. 

This contributes to the market's volatility as markets tend to rise when new developments (upgrades, discoveries, implementations) take effect, while markets can fall when deadlines are missed or errors occur, leading investors to lose faith in the technology. 

Outside speculation

Arguably the biggest contributor to the market's volatility is the speculation surrounding cryptocurrencies. Predicting price swings and then acting on them has caused many an upward and downward spiral. From buying in just before the price rises to short just before a crash, speculation plays a large role in the market's swings and increased volatility. Speculation management is a key ingredient when it comes to successfully trading crypto.

Increased media coverage

Another great contender to volatility in the market is the media. Having a great influence over investor sentiment, the media has been behind many price swings in the market. With the power to launch or crash a market, the media plays into the narrative by encouraging investors to quickly buy or sell with attention-grabbing headlines.

Easy accessibility

The final factor to consider in the causes behind the market's infamous volatility is its accessibility. Stock markets and real estate typically attract a certain calibre of investors, while the entry requirements for investing in crypto are very low. It does not require any licences, degrees, lawyers or heavy capital. Anyone can enter the market with a small amount of money and internet access.

The market has typically been dominated by retail investors, however, in recent years institutional investment has been on the rise. The simple way in which anyone can enter the market provides an open invitation for volatility. 

All playing their own role, these factors contribute to market prices being thrown in seemingly random directions at unpredictable time intervals. Understanding the fast nature of price swings and what might be behind them will contribute to investors and traders gaining a tighter grip on what might happen next. 

Can the market stabilize?

Now that we've explored what factors are behind the volatility, let's dive into whether the markets could stabilize. Bitcoin maximalists claim that once Bitcoin reaches a level of adoption, the price will stabilize. While there are no clear criteria for what "adoption" is, the theory remains true. 

According to this data, Bitcoin is currently the 14th biggest currency in the world, sitting comfortably between the Swiss Franc and the Thai Baht. This illustrates the cryptocurrency's affirmative dominance despite its volatility. 

Will it improve with time, or will a seismic shift in the way people perceive cryptocurrency ultimately solve the volatility issues. At this time, one can't say for sure. So in the meantime, continue HODLing if that's what you came here to do, or leverage the swings as you trade, in the end, you can make gains either way and still come out smiling. 

How to maintain financial stability in volatile markets

First and foremost, never invest more than you're willing to lose. This is the golden rule of investment across all asset classes. The next universal rule is to not act on emotions, do not make impulsive decisions when it comes to your trading portfolio, rather expect volatility and have a plan. Below we outline several tips on how to remain calm in stormy markets.

• Do not pay attention to short-term fluctuations and rather stay invested for the long term.
• Create a limit order that will automatically execute if markets crash. This will create a safety net should things turn south.
• Consider that typically when volatility subsides, prices increase.
• Remember why you invested in the asset and refer back to its potential.

When faced with something new or unfamiliar, especially when dealing with money, people often tend to automatically put it into a box. Unfortunately, Bitcoin is no exception. Since its rise in value since its initial launch in 2009, many have been skeptical of how and why it could do so. In this informative article, we explore the common misconception that Bitcoin is a Ponzi Scheme. 

What Is A Ponzi Scheme?

First, let's take a look at what a Ponzi Scheme actually is. Ponzi Schemes are fraudulent investment scams which promise high rates of return with minimal risk. This is orchestrated by a "portfolio manager" taking an investment (payment) from a new recruit and using those funds to pay off earlier investors, taking a portion of the funds for themselves. 

The new recruit will only be paid once they have recruited more new people, whose funds will be used to pay off their investment. As long as new people are entering the system, the earlier investors are seemingly making profits. This all falls apart when the pool of potential investors becomes saturated and no new investors are entering the system. 

The business concept was first mentioned in literature in the 1800s but was officially coined in the 1920s after a person by the name of Charles Ponzi. Ponzi schemes pose as financial services and are illegal in the UK and most other countries and are punishable in the same light as anti-money laundering.

Why Bitcoin Is Not A Ponzi Scheme

As Bitcoin is an entirely decentralised asset and operates using the transparency of blockchain technology, Bitcoin cannot be a Ponzi Scheme. Due to the nature of blockchain, anyone at any time can verify all transactions made on the Bitcoin network, dissimilar to a Ponzi Scheme where "investments" are shrouded in secrecy. 

Ponzi Schemes need to obfuscate transactions from both investors and regulators in order for the scam to work, which is the exact opposite of how blockchain functions. These issues alone prove that Bitcoin cannot be a Ponzi Scheme.

Instead, Bitcoin is open to anyone and following one purchase the investor can own and hold the original cryptocurrency. As a digital currency, Bitcoin is stored in digital wallets which are accessible to anyone, without the need for lengthy paperwork. Most exchanges offer users access to a Bitcoin wallet, which can easily be accessed directly on the platform.  

Bitcoin Volatility Confirms It Is Not A Ponzi Scheme

Not often seen in a positive light, Bitcoin's market volatility puts the final nail in the coffin when considering whether Bitcoin is a Ponzi Scheme. See, in Ponzi Schemes investors receive suspiciously consistent returns, which is just not plausible when it comes to trading Bitcoin.

Day traders have been known to witness high price swings over short periods of time, sometimes losing or accumulating a large amount in mere hours. This is entirely unrealistic when it comes to the functioning of a Ponzi Scheme. 

Instead, Bitcoin's price history has shown that substantial growth is generally witnessed in four year periods. This is in line with the Bitcoin halving event, an automated change to the miner's rewards which manages the number of new coins entering circulation. After every 210,000 blocks are added to the network's blockchain, the halving event is initiated, and the rewards are automatically halved. History has shown that roughly 12 - 18 months later Bitcoin has seen substantial gains. The next halving to take place will be in 2024. 

How To Avoid Ponzi Schemes In The Crypto Realm

While Bitcoin and other cryptocurrencies are not Ponzi Schemes themselves, that doesn't mean that Ponzi Schemes cannot use Bitcoin to lure in potential investors. Beware of any investment "firms" looking to invest in crypto for you, particularly if they're claiming to provide inflated rates of returns. 

Instead, invest in crypto yourself through a reputable platform like Tap and take matters into your own hands. Buying cryptocurrency is simple, you can do so with a credit card or bank transfer, and then the funds are stored in the digital wallets allocated to you specifically. From the mobile app you have full control over your funds, able to sell or buy at a moment's notice. The platform also utilises integrated technology which scans multiple exchanges and order books around the world to find you the best price in real time. 

Stay clear of Ponzi Schemes and other investment scams, and utilise the financially-inclusive world of crypto investments yourself.

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The financial landscape well and truly changed after Bitcoin was released in 2009. The new digital cash system took the financial power away from banks and government entities and put it back into the hands of the people. While Bitcoin has become a household name over the last decade, the creator still remains a mystery. Let's take a deeper dive into one of the biggest mysteries of the modern world.  

The Bitcoin solution

Before we plunge into the mysteries of the anonymous entity behind this century's greatest invention, let us first highlight the revolutionary product that is Bitcoin. The electronic payment system was first introduced to the world in late 2008 by a certain Satoshi Nakamoto. 

The character seemingly came from the abyss and presented to the world a solution to the global financial crisis that caused widespread disruption. This solution was in the form of a digital currency and used blockchain technology to facilitate, maintain and operate the network. 

Nakamoto did not invent blockchain technology, instead, he improved on several issues like the double-spending problem. The technology was originally created to facilitate file sharing although was hindered by that issue. Today, blockchain technology has a wide range of use cases and is being implemented in industries around the world, far beyond just the crypto and financial fields. 

Bitcoin remains the biggest cryptocurrency to this day, with over 17,500 alternative cryptocurrencies and counting. At the time of writing the industry is worth just over $2.2 trillion, although it reached highs of $2.968 trillion in November 2021. No asset in the history of the world has gone on to achieve such success in such a short space of time. 

What we know about Satoshi Nakamoto

While we know the name Satoshi Nakamoto, it remains to be known who is behind the pseudonym. This person or entity released the Bitcoin whitepaper in October 2008 to a group of cryptographers and shortly afterwards created the BitcoinTalk forum and Bitcoin.org website. 

Two months later, the first block on the Bitcoin network was mined, known as the Genesis block, with the caption "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks." It was mined that same day.

Stephan Thomas, a BitcoinTalk Forum member, mapped out when Nakamoto posted on forums to get an indication of what time zone he might live in. The results showed that he was least active during 6h00 to 11h00 GMT, suggesting that should he sleep at night (not a given for developers) that would place him in a time zone somewhere between GMT -5 to GMT -7, somewhere in the Americas.

During 2010, Nakamoto was an active member of the Bitcoin community. He worked on building Bitcoin's protocol and often collaborated and communicated with other developers. Then, towards the end of the year, he strangely handed over the keys and codes to another active developer, Gavin Andresen, and transferred the domains he had created to other members of the community. By the end of the year, he seemed to have cut ties with the project.

Before all but vanishing, the last trace of communication we know of from Satoshi Nakamoto was a message to Mike Hearn, another developer, on 23 April 2011, that read: "I've moved on to other things. It's in good hands with Gavin and everyone." And just as abruptly as Bitcoin had entered the world, Nakamoto left it.

Who could be behind the anonymous entity? 

While many people have been suspected of being Satoshi Nakamoto, there is yet to be enough evidence to convince everyone else. Over the years, many journalists have tried to lift the veil, and again, to no avail. For over a decade, the world has been left wondering who is behind the anonymous name, and why would they not come forward?

The biggest contenders for the mystery person have been Hal Finney, Nick Szabo, and Dave Kleiman, who have all denied this. One man, Craig Wright, has come forward to claim to be Satoshi Nakamoto, however, the industry remains unconvinced (along with a judge in a recent legal battle that played out in a British court).

Hal Finney

Hal Finney is a computer scientist who had previously tried to create a digital cash system. Finney is noted as being one of the earliest people interested in Bitcoin, with the first transaction taking place between Satoshi Nakamoto's wallet and Finney's. 

Finney also lived in the same town as Dorian Satoshi Nakamoto, a Japanese man who was hunted by the media when they assumed they had found the "real" identity. Finney passed away in August 2014. 

Nick Szabo

Nick Szabo is credited with having tried to create a digital cash system prior to Bitcoin's launch, releasing BitGold in 1998. He also coined the name "smart contracts". The cryptographer and computer scientist was listed as the most likely person to be Satoshi Nakamoto following a study done in 2014 by a group of students and researchers at Aston University who conducted a thorough linguistics analysis on all previous communication. 

Dave Kleiman

Dave Kleiman was a computer forensics expert whose name has come up plenty of times, largely thanks to Craig Wright. Kleiman's estate sued Wright over claims that they had invented Bitcoin together and had access to a large, shared amount of BTC. He died broke and in squalor in 2013.

Craig Wright

The Australian computer scientist and businessman has gone to great lengths to claim to be Satoshi Nakamoto, however, has provided little to no evidence. These claims have been unequivocally disregarded by the Bitcoin community. 

The mystery remains unsolved

Perhaps the biggest irony of all, is that the technology is entirely trustless and operates with the work of thousands of nodes who don't know each other. All we know is that whoever it was/they are, they revolutionised the world as we know it and have left us with some sort of extraordinary.

This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.

This leading top 5 cryptocurrency has made waves throughout the crypto industry and remains the top favorite stablecoin on the market. With often times the biggest trading volume in a day, Tether has established itself as an integral part of the crypto industry. Let's unpack more about the digital currency, Tether.  

Since the advent of digital internet money, there has been a wide growth in usage as well as outcry over the dangers of using this form of currency. While more traditional investors scorn the volatility associated with cryptocurrency markets, many other communities around the world have for the first time been able to access financial services, only needing an internet connection instead of lengthy bank account applications.

When it comes to the underlying security and transparency that digital currencies can provide, it directly tackles an infringing problem that the traditional currency markets regularly deal with. While many claim Bitcoin, and digital currencies in general, to be "risky" and a bubble, the truth is that the new age payment services have brought a multitude of results to an outdated system.

What Is Tether (USDT)?

Tether (USDT) is a cryptocurrency pegged to the US dollar, otherwise known as a stablecoin. Stablecoins hold the value of the fiat currency or commodity they are pegged to on a one-to-one ratio. Tether is the world's first stablecoin, originally launched for trade in 2014 under the name Realcoin.

While Tether was initially launched on the Omni Layer on the Bitcoin blockchain, it has since become compatible with a number of other blockchains, including Ethereum, TRON, EOS, Algorand, Solana, and the OMG Network.

A stablecoin requires the circulatory supply to be matched by funds stored in a reserve account. Tether uses a combination of commercial paper, deposits, cash, reserve repo notes, and treasury bills to maintain the circulating value. In the past there has been some speculation regarding Tether's backing, however, this has not affected the stablecoin's increasing popularity and buying power.

The core concept of Tether is to provide a digital asset with a stable market price that can harness the power of blockchain technology and the benefits of cryptocurrencies without incurring any of the volatility associated. You can visit the Tether site to gain a more thorough understanding of the intricacies of the coin.

What's The Value Of Tether?

While most cryptocurrencies have a value attached to their specific supply and demand, stablecoins are pegged to a fiat currency or commodity. This means that the value will remain consistent with the value of the fiat currency or commodity it is pegged to, generally this is on a 1:1 ratio.

For the case of Tether, the value will always reflect that of 1 US dollar. While the value remains the same, it is necessary to report that the stablecoin has managed to become one of the most widely traded cryptocurrencies on the market.

Who Created Tether?

As mentioned above Tether was initially called Realcoin when it was launched in 2014 and was created by Bitcoin investor Brock Pierce, entrepreneur Reeve Collins and software developer, Craig Sellars. It later changed its name to USTether, eventually settling on USDT.  

All three co-founders have profound experience within the crypto industry, each co-founding and actively involved in several cryptocurrency and blockchain projects.

The business has also created a number of other stablecoins solving the volatility problem across numerous markets, notably a Euro-pegged Tether coin (EURT), a Chinese Yuan-pegged Tether coin (CNHT), and a gold-pegged Tether coin (XAUT).  

How Does Tether Work?

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Tether does not have a blockchain of its own on which it operates. Instead, it operates as a second-layer token on top of other already establish blockchains, such as Bitcoin, Ethereum, EOS, Tron, Algorand, Bitcoin Cash and OMG.  

Tether still functions like any other cryptocurrency, being stored and maintained through wallets specific to the blockchain it is built on. Note that you cannot send USDT built on the Ethereum blockchain to a Tron-based wallet, it must remain on the relevant, same blockchains. The result of this would be lost coins.

The circulating supply of Tether is required to always be backed by the same amount of US dollars held in a reserve account. These reserves can also be made up of other real-world cash equivalents, assets, and receivables from loans.

Providing a stable digital currency in an otherwise relatively volatile market, Tether allows users to make USD trades, both internationally and locally, without any concerns over price movements. It also provides a valuable hedge against markets experiencing sudden or dramatic price dips.  

What Is USDT?

USDT is a stablecoin pegged to the US dollar on a 1:1 ratio. Created under the Tether brand, USDT is the most widely used stablecoin on the market today. There is an infinite supply of USDT available, with roughly 72.5 billion in circulation at the time of writing.  

USDT provides a safe haven for investors when markets go through major downward price trends, offering a stable price to move the value to without having to liquidate the digital assets to cash.  

How Can I Buy USDT?

If you would like to incorporate Tether (USDT) into your crypto portfolio you can do so easily through the Tap mobile trading app. After completing a simple KYC verification, users can gain access to a number of crypto markets and can store the digital assets in our unique, integrated crypto wallets.

The potential for blockchain and cryptocurrencies is vast. With the help of the Tap mobile app, you can manage your crypto portfolio and fiat on-the go while also utilising real world use cases like Tap prepaid card that offers payment access to over 40M+ merchants worldwide.

Used across all markets, the spread is the difference between the buy (offer) and sell (bid) prices of an asset. Spreads provide an additional opportunity to traders to make money through buying and selling assets.

The spread of an asset will depend on the current demand or an asset and the market’s volatility and is presented in either a percentage or value form. Assets with markets displaying higher levels of demand will typically have smaller spreads and usually higher price points. 

As an example, when you look at an order book for Bitcoin you will usually see prices reflected in green and red reflecting the offer prices and bid prices. The spread will then be indicated above the most recent trades. As another example, consider foreign exchange counters where the buy and sell prices are different, this difference is known as the spread. Market makers use spreads to generate money from transactions completed at market prices.

Let's put this in context: George buys 100 shares for a £2 ask price in “ABC” a publicly listed company. George pays £200 in return for 100 shares. If he decides to sell the shares back at the same price he bought them for, he would sell the 100 shares for the bid price at £1.95 and would receive £1.95 each instead of £2. This would mean he gets a return of £195 and loses £5, which would be paid to the market maker.

Sitting among the 30 biggest cryptocurrencies by market cap, Stellar is focused on bridging the gap between the business of blockchain and the traditional financial institutions. The platform provides a means for users to send assets and money through the blockchain, utilising a decentralised network of authenticators.

Redefining the financial landscape, Steller presents a digital transformation on the traditional services users have become accustomed to. Merging innovation with a practical application, the network is able to help users around the world, as well as financial industries, achieve a more streamlined service. Let's explore what Stellar is.

What is Stellar (XLM)?

Before we dive into the "what", let's first stipulate that one stellar is known as a lumen and uses the ticker XLM. Stellar launched in July 2014 and soon afterwards changed its strategy to be more focused on integrating blockchain technology into financial institutions. 

The concept behind Stellar is to provide a space in which users can transfer everything from traditional crypto and fiat currencies to tokens representing new and existing assets, increasing their transaction performance by using lumens.

Similar to the Ripple XRP network, Stellar is designed to cater to both payment providers and financial institutions, building a bridge between the blockchain and traditional financial sector. Developing on the Ripple concept, Stellar has also positioned itself as an exchange as its ledger has an inbuilt order book that keeps track of all the assets on the network. 

Who Created Stellar?

The founders of Stellar are Jed McCaleb and Joyce Kim, both previously employees at Ripple. McCaleb, who founded and was acting CTO of Ripple, and lawyer Joyce Kim, decided to create Stellar after they left the Ripple team in 2013 following a disagreement on the direction that Ripple was taking. McCaleb is also credited with creating the first successful Bitcoin exchange, Mt Gox. 

McCaleb described Stellar's aim as giving people a means of moving their fiat into crypto and more seamlessly conducting international payments. The network provides cross border transactions with low transaction fees and fast executions. With leading technology and innovative problem solving, the network has made a healthy impression on both institutions and investors alike.

How Does Stellar Work?

Stellar is a hard fork off of the Ripple network with several similarities in design and functionality, however, the platform set itself apart by building in several key features. The platform is secured through the Stellar Consensus Protocol which revolves around these core business concepts: decentralised control, flexible trust, low latency, and asymptotic security.

The biggest upgrade launch came in 2015 when the platform replaced its consensus mechanism with a concept called federated Byzantine agreement. This required nodes to vote on transactions until quorums are reached. Anyone is able to join the consensus, and there are measures in place to inhibit bad actors operating with ill intent on the network.

The software behind the platform is called Stellar Core and can be altered to adhere to the needs of the operation using it. The nodes making up the network can be created to function as either Watchers, Archivers, Basic Validators or Full Validators. For example, watchers can only submit transactions while Full Validators can vote on which transactions are valid and maintain a ledger of all node activity.

Another element to the network is the Stellar Anchors. These gateways are responsible for accepting deposits of currencies and assets and issuing depictions of these on Stellar.

What Is XLM?

Known as lumens, XLM is the native cryptocurrency to the Stellar platform. XLM acts as an intermediary currency for transactions taking place on the network. With cost-effective experience priorities, every transaction on the Stellar network costs 0.00001 XLM, a fraction of a dollar (at the time of writing). 

When the platform launched in 2014, 100 billion lumens were minted, programmed to increase by 1% annually until the total supply reached 105 billion. Five years later the Stellar uses voted to end this process. 

That same year, in 2019, the Stellar Development Foundation (a non-profit organisation) reduced its share of XLM in order to regulate the Stellar economy. This brought the total supply down to 50 billion. At the time of writing, roughly 49% of this total supply is in circulation. 

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Solana is a high-performance blockchain that uses a unique consensus mechanism to achieve high throughput and security. Thanks to its user-friendly nature, the platform is already being used by major companies. As we explore what Solana (SOL) is, we take a look at the project's intentions, successes, and of course why it is often referred to as the leading "Ethereum killer".

Since Bitcoin was created in 2009 an entire crypto ecosystem has emerged, valued at almost $1.2 trillion at the time of writing. While Bitcoin was designed to provide a global payment system to address problems in the traditional financial sector, other platforms like Ethereum and now Solana have been created to facilitate the development of the blockchain industry as a whole through programmable functionalities.

What is Solana (SOL)? 

Recognised as being one of the fastest-growing protocols in the DeFi space, Solana offers a platform for developers to build decentralized applications (dapps) and smart contracts, similar to Ethereum. However, what sets Solana apart is its remarkable speed and lower transaction fees.

The project is led by two main entities: the Solana Foundation, a non-profit organization based in Switzerland, focuses on promoting the platform and collaborating with international partners; and Solana Labs, located in San Francisco, takes charge of driving the project's development.

Solana implements a unique approach to support a more environmentally friendly crypto ecosystem. While it utilizes a Proof-of-Stake consensus mechanism to maintain its operations on the platform it also utilises an innovative consensus mechanism called Proof-of-History (PoH), created by one of its founders. 

PoH is groundbreaking in the blockchain space, allowing the network to process an impressive 65,000 transactions per second. For context, Ethereum can process 30 transactions a second. PoH is described as being a "timekeeping technique to encode the passage of time within the data structure." 

Renowned for being one of the fastest programmable blockchains in the cryptocurrency world, Solana has built a dedicated following. This is evident from the wide range of businesses, from finance to travel, using the platform and the strong interest in SOL tokens, the platform’s native coin. 

Key features of Solana

Setting itself apart in the industry and making it a hit among the investor community, Solana offers these key features:

Scalability

The platform is able to handle thousands of transactions per second (TPS), using advanced technologies like parallel processing and mempool-based TPUs for scalability.

Smart contracts

Solana supports smart contracts, allowing developers to create and operate decentralized apps.

Proof of Stake (PoS) consensus

It's unique PoS consensus combines Proof of History (PoH) for speedy transactions, quick validation, and swift block confirmations.

Decentralized finance (DeFi)

Solana's fast, low-cost transactions make it a DeFi favourite, facilitating lending, trading, yield farming, and more.

Who created Solana?

Software engineer, Anatoly Yakovenko, is responsible for creating the Solana platform. He started working on the blockchain project in 2017, three years prior to its launch, alongside his former colleagues, Greg Fitzgerald and Eric Williams. They teamed up with several other former colleagues and together built the programmable network we know today.

Anatoly Yakovenko is also credited with developing the PoH protocol, an innovative contribution to the blockchain space that allows for greater scalability, thereby boosting usability. His expertise has been influential in the industry.

How does Solana differ from Ethereum?

One of the platform's main aims is to improve on several of the Ethereum platform's computing functionalities. Solana stands out by making transactions really fast, while also improving how much the system can handle, scalability, and cost structure. This makes Solana a top choice for efficiency and performance in the world of blockchain.

Scalability

While the project's leads say that Solana will process up to 700,000 transactions per second (TPS) as the network grows, it can currently handle around 65,000 TPS, still a far cry from Ethereum's 30 TPS.

Solana is one of the few layer-one solutions from a computing platform that is able to support thousands of transactions per second without the use of off-chains or second layers.

Cost

Due to the nature of the Solana network, it is able to provide much more cost-effective transactions, generally costing around $0.000125 per transaction. 75% less than that of Ethereum, $0.0005 per transaction at the time of writing.

What is SOL?

SOL is the native cryptocurrency to the Solana platform powering its scalability and reduced cost structure. The cryptocurrency acts as a utility token, used to pay for transactions on the network and to secure the network through staking. 

SOL is a proof-of-stake cryptocurrency, which means that it is secured by network participants who stake their SOL tokens. The price of SOL is impacted by conventional factors like project updates, investment market sentiment, exchange activity, and the overall economy, alongside variables such as the token's inflation rate, burning amount, and the expansion of the Solana ecosystem.

How Can I Buy SOL?

If you're looking to diversify your crypto portfolio with the likes of Solana, you’ve come to the right place. Tap allows users to seamlessly buy, sell, trade, and store SOL through the convenience of the Tap app. Using crypto or fiat money, users can tap into this growing market and become part of the Solana-driven blockchain revolution. For more content on how to trade Solana, see here on the Tap website.

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Risk in trading is the chance that something might negatively impact an investment. Before engaging in any trading activities it is important to evaluate your appetite for risk, determining whether you are able to handle more risk or are more risk averse. 

Measuring risk will be dependent on the type of asset you are investing in, the amount of capital you have to use, and the time frames in which you expect to see results. Different assets and trading strategies hold different amounts of risk. 

For example, investing in an index fund is considered a low-risk investment and is better advised to investors looking to make a slow and steady return over a longer period of time. Index funds aggregate the performance of the 100 companies listed on a particular stock exchange and pay back dividends accordingly. Because they are large companies the growth is often more likely to be smaller yet consistent. 

With a little more appetite for risk, in the crypto markets, the same could be said about choosing to invest in an emerging altcoin versus established cryptocurrencies like Bitcoin or Ethereum. An emerging asset would encompass a higher risk higher reward ratio, however, no returns are guaranteed. 

You can speak to a financial advisor to get a sense of your risk appetite.

Risk management involves identifying and analysing the risks involved, and then choosing whether to accept this risk or make changes to avoid the risk. This process is one we carry out daily, from crossing the street to engaging with a stranger, however, in this realm we’re looking at it from a finance/investment point of view. 

If you have a fund manager or financial adviser, they will generally be responsible for calculating and communicating the risks associated with any type of investment. This will cover the potential returns as well as the potential risks to your capital. 

For example, investing in an emerging asset will hold a lot more risk than buying the stocks of a well-established institution. It’s worth noting that high risk doesn’t necessarily equate to a negative, typically assets with higher levels of risk bring about higher levels of return (high risk, high reward).

Each person’s level of risk will vary from one to another and should be decided prior to making any investments. Once this is established, your investment portfolio will work within those realms so as to manage that level of risk. 

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Know your customer also known as "KYC" is a regulatory requirement imposed by the Financial Crimes Enforcement Network to combat money laundering, terrorism financing, and fraud prevention. The requirements for KYC are determined on an industry-by-industry basis. Fintech businesses and the Bank sector typically requires KYC of customers who open a new account with them.

KYC ensures that financial institutions know their customers' identity well enough to understand where funds came from for deposits or how payments will be made before starting to use the company's services. KYC is an efficient first line of defense in combating terrorism financing by verifying customer identities to help identify any potential links to terrorist organizations, bribery, corruption, individuals with a history of money laundering.

KYC is an important measure in anti-money laundering regulations, making it a safety guard for cryptocurrencies. Financial institutions and regulated service providers such as Tap boast robust KYC process to protect our consumers so that you can feel more confident that your funds will remain secure no matter the business environment circumstances.

How does KYC work?

Within the Finance sector, any company or project must meet strict rules and regulations that require to have rigorous identification checks (also called regulatory compliance) such as verification of address information, validation of residency status. Apart from verifying a customer's identity, it's also important to confirm the user's location and address. Your identity documents will provide basic data like your name and date of birth, but more is needed to establish your residence, for example.

During a standard Know Your Customer process, you will be asked for several documents:

-A proof of identity ( such as passport, ID card, driving license)

-A proof of residence

-A selfie (to prove that it's you)

The KYC must be completed at the initial stage as well as on an ongoing basis so that businesses can deliver services or goods to clients. It is a best practice for any business offering financial services to re-verify the identity of their customers at regular intervals to ensure AML. Sometimes new customers have to go through several steps of verification before they can start any financial transaction/investment using the service of the company.

KYC Around The World:

KYC regulations can vary from country to country, but there is a lot of international cooperation on the basic data information needed. For example in America, KYC and AML processes are driven by financial crime prevention legislations such as The Bank Secrecy Act (2001) and Patriot Act (2006). In Europe, KYC compliance regulation falls under EU Anti-Money Laundering Directive with PSD2 providing additional regulatory guidance for all countries within the Union. Internationally however it's been agreed that FATF should coordinate multinational cooperation when it comes to regulatory conditions.

The Benefits: 

In spite of the time it takes to set up accounts, KYC identity verification is worth it when taking into account the benefits, keeping your funds safe, protect you from identity theft, fraud, and other illegal activities is largely the result of robust KYC control. These procedures ensure that financial service providers are not only safe but trustworthy. Trade Crypto with Confidence with regulated companies like Tap boasting robust KYC procedures to safeguard its customer assets and information.

In short: KYC is a common regulatory requirement that financial service providers are obliged to fulfill in order for businesses to operate under the law and consumers should take KYC seriously. KYC requirements differ across the financial sector. It is a necessary measure in anti-money laundering regulations, making it an important safety guard for cryptocurrencies as well as customer assets by preventing fraudulent activity. KYC in the Fintech or Bank sector is generally imposed on new customers who open a new account.

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Coined in 2014, hyperbitcoinisation is the voluntary transition from an inferior currency to a superior one, referring to Bitcoin becoming the primary currency in an area. As was the case with El Salvador integrating Bitcoin into its financial service sector in 2021, the world is slowly progressing to a more inclusive space for cryptocurrencies, inching closer to the prospect of hyperbitcoinisation.

In this article, we explore this concept and what is contributing to its progress in the financial industry.

What is hyperbitcoinisation?

There are three core ideas behind the definition of hyperbitcoinisation. The first relates to a gradual transition from an inferior currency to a superior one, while the second alludes to a tipping point where fiat currencies are no longer sustainable and are abandoned for the use of cryptocurrencies. The final definition sees hyperbitcoinisation as the swift and irreversible adoption of Bitcoin as the world's primary monetary reserve. 

In conclusion, hyperbitcoinisation is Bitcoin-induced currency demonetization, it's intended not to disrupt the traditional currency markets, but rather to be used alongside them. It's the language of the Bitcoin maximalist, one who sees Bitcoin as the answer to everything (unit of account, store of value and medium of exchange). 

Hyperbitcoinisation would require the price to stabilize, providing a more stable economy for transactions to take place. It would also require stronger regulation in the space to ensure the protection of the people using it. While the decentralized nature of Bitcoin is often a drawing point for investors, it will require an element of regulation in order to become a legal tender and considered to be sound money.

The positive factors pointing toward hyperbitcoinization

In order for hyperbitcoinisation to take effect a number of things need to occur. For starters, Bitcoin would need to be adopted by a strong network of institutions, main street businesses, merchants, public and private companies, ETFs, central banks, governments and regular investors. 

From an operating perspective, the nodes on the Bitcoin network would need to increase substantially. Currently, there are roughly 14,000 nodes around the world with the main clusters in Germany, France, the United States, and the Netherlands. In order for hyperbitcoinisation to take full effect, the network would need to expand in both product numbers and globalisation. 

There are currently an estimated 400,000 daily Bitcoin users and over 100 million people holding Bitcoin. While these numbers are impressive, they represent only a small fraction of the world's population. As Bitcoin gradually moves through from the Early Adopters to Early Majority stages in the technology adoption scale, in order for hyperbitcoinisation to take full effect we would need to have transitioned to the Late Majority and Laggards segments. This would indicate that societal adoption has peaked and stabilised. 

On the note of societal adoption, it is estimated that collectively around the world countries hold over 250,000 BTC, while public and private companies own 414,000 BTC, and ETFs over 800,000 BTC. This indicates that Bitcoin adoption is creeping into government and company holdings as well as traditional investment vehicles. 

While there is much to be achieved, these factors all clearly indicate that the ball is in motion. 

_{The negative factors contributing to hyperbitcoinization}

The flip side of the coin shows which negative factors contribute to hyperbitcoinisation, namely central bank digital currencies (CBDC) and inflation. 

CBDCs provide a strong current in the flow toward global crypto adoption. While CBDCs are not decentralized or true to the origins of cryptocurrencies, they operate in the same way and will drive populations to become familiar with digital versions of cash. 

As more people become used to the concept, it is likely that they will incorporate Bitcoin and other cryptocurrencies into their daily habits as these, at their core, are more similar to cash than the CBDC alternative. They are also less monitored and offer a greater opportunity for financial freedom. 

Inflation on the other hand has already played a large role in the adoption of cryptocurrencies. Following the inflation-inducing stimulus implemented by governments during the Covid-19 pandemic, many investors and businesses turned to Bitcoin to protect their capital. By the end of 2021, countries around the world were experiencing the highest inflation rates in decades. 

As people lose faith in their fiat currencies and turn to cryptocurrencies, as witnessed by the incredible gains seen across the entire crypto market, this only fuels the road to hyperbitcoinisation. 

In Conclusion

Monetary and economic transitions take years to be properly implemented, however, if the last two years are any indication of what's to come, hyperbitcoinisation just possibly could happen in our lifetime. While there are many, many factors that need to take place before it's even a remote possibility, the groundwork already established indicates that we're on the right path. 

Decentralized finance, or "DeFi," refers to financial services that provide many of the same features as traditional banks - like earning interest on your money and borrowing from others - but without middlemen who take a fee or charge interest, paperwork, or privacy trade-offs. A chartered accountant and Blockchain do not have much in common, but they are starting to as DeFi and FinTech take over. I

nstead of relying on financial services like banks, users can utilize smart contracts on blockchain. Cryptocurrencies ensuring even more ease of use for DeFi users, providing the hottest speeds, fees, and transparency. Defi and digital currencies are growing in popularity thanks to the perks of Blockchain technology. Let us get more into the concept and how it caters to a larger audience.

The aim and use of DeFi

Decentralized finance is the future of financial services, and it's already here. The aim of DeFi is to provide a decentralized financial services platform that is open and accessible to anyone in the world, using tech like crypto to help advance the everyday life of anyone and any business willing to give decentralization a try.

In the past decade, we've seen a rise in peer-to-peer lending platforms such as Lending Club, Patreon, BTCJam, and an explosion of digital currencies such as Bitcoin and Ethereum.

All of these developments have taken us one step closer to the decentralized future of finance that we've been dreaming about, but there's still more work to be done.

What's wrong and how can DeFi fix it

Many institutions in the financial sector are slow and expensive when it comes to providing basic services like payments. Online lender contracts can charge interest rates as high as 30 percent, and the global remittance industry charges fees that can be as high as 12 percent.

These fees and delays mean some of the most vulnerable individuals of our society are paying the highest prices for financial services when they need them most. While the traditional financial system can be slow and expensive, it doesn't have to be this way. Decentralized finance (DeFi) is an emerging category of services where trust intermediaries such as banks are replaced with cryptographic code and smart contracts, which reduces costs for everyone involved - especially when it comes to international payments.

DeFi is a new category of services that are globally accessible and built on top of blockchain infrastructure, without any charge or barrier to entry. It's also much more secure than traditional financial systems because the technology used isn't connected to a central server that can be hacked. DeFi users smart contracts applications to ensure ease of use and instant transfers of information and funds.

Your money is always yours; it's just moving from one smart contract to another. No permission from an intermediary is required in order to use it. All you need to do is have a cryptocurrency wallet, computer or mobile device, and internet connection like everyone else using DeFi services today.

DeFi isn't coming, it's already here

When you ask yourself, "where is DeFi going?", the answer is simple: everywhere. DeFi can be used from every corner of the world, and it's already available today. Innovation at its finest.

DeFi services are not theoretical. They're already being used by real people today to make real asset payments, earn interest on their digital savings, and borrow money from both friends and strangers, all without ever going through a bank or traditional financial institution. Whether you are investing, a money maker, or an asset holder, the shift to DeFi is inevitable.
Blockchain technology provides the first-ever opportunity for these separate building blocks to come together in order for the entire financial system to work seamlessly without any intermediaries, so it will only get better with time. From an economic standpoint, DeFi offers better rates and all the perks of FinTech. Cryptocurrency assets like Ethereum have seen plenty of investment opportunities arise as DeFi and Blockchain merge.

DeFi pros and cons

In order to get a complete picture of what DeFi is, it's important to understand all the good and bad parts that we are facing now. So let's dive into the details.

DeFi pros:

• The interest rate on savings and money lending is relatively high, just as it would be without intermediaries.
• Financial services are more accessible than in traditional bank systems because there aren't any barriers to entry, like non-existent internet infrastructure or bank account fees.
• Transaction and disruption times are much faster because DeFi transactions can move directly from peer to peer without having to go through intermediaries.

DeFi Cons:

• Some transactions might not be as private due to the public records of smart contracts on a blockchain (keeping that in mind, transparency is always beneficial). This however increases security because fraud or reversal can't happen.
• Access to DeFi services can be limited if you live in a part of the globe where these services aren't supported or don't have high enough adoption rates, as compared to traditional banking systems in developed countries. Regulator issues may also occur.
• There isn't a built-in mechanism for handling consumer disputes between peers because the technology simply wasn't designed with this function in mind.
• It's difficult to understand what you're getting yourself into when joining a DeFi service, since it varies from one application to the next and is based on new technology. This doesn't have to be the case in the future.
  

As of now, it's still the early days for DeFi and there are some challenges to overcome before we can look at it as a real alternative. There's still a lot of work to be done, but it will all pay off in the end.

A consistent member of the top 10 biggest cryptocurrencies by market cap, Cardano has earned itself an impressive position in the market. The innovative project was developed by a team of brilliant minds, including the co-founder of Ethereum, Charles Hoskinson, and aims to be the next generation of Ethereum. Let's explore what Cardano is and why has become a popular cryptocurrency. 

What is Cardano?

Cardano is the blockchain platform that has taken the industry by storm since its launch. Alongside its cryptocurrency, ADA, Cardano provides developers with a platform on which to build decentralized applications (dapps) and smart contracts. Through a more scalable and sustainable model, Cardano seeks to improve on Ethereum's offering and propel the blockchain and crypto industry into a more eco-friendly future. 

Cardano uses a Proof-of-Stake consensus to facilitate the network and is considered to be a third-generation blockchain platform (Bitcoin being the first, Ethereum the second). Unlike other blockchain platforms, Cardano does not have a whitepaper and instead relies on rigorous academic and peer-reviewed research. The platform has numerous ties with universities around the world, contributing to the funding of the development of blockchain research. 

Who created Cardano?

Cardano was first conceptualized in 2015 and later launched in September 2017 by Ethereum co-founder, Charles Hoskinson. His goal was to build a highly scalable and energy-efficient smart contract platform. After leaving the Ethereum team, Hoskinson grouped together a team of expert engineers and academics and set out to build a layered blockchain platform from scratch. 

Today, the platform is developed by a group of organisations that each focus on different elements of the business. The first is the Cardano Foundation which is responsible for standardizing, protecting and promoting the protocol technology. Input-Output Hong Kong (IOHK) focuses on building technological solutions centred around financial inclusion, while its sister company Emurgo is a global initiative designed to "support developers, startups and enterprises in developing blockchain solutions".

Together these companies assist in the growth and development of Cardano. While regulatory news and Bitcoin may be behind many altcoin price swings, Cardano has done well to establish its value in the crypto market and build a community that supports its goals.

How does Cardano work?

Through a Proof-of-Stake (PoS) mechanism known as Ouroboros, Cardano provides peer-to-peer transactions, dapp development and the creation of smart contracts. The layered architecture makes this possible, with one layer, known as the Cardano Settlement Layer (CSL) responsible for validating transactions and maintaining the ledger of balances while the Cardano Computing Layer (CCL) is responsible for the execution of all dapp computations via smart contracts. 

The separation of these two layers allows the platform to offer lower fees, less network congestion and faster transactions. When thoroughly tested in 2017, Cardano was able to process 257 transactions per second (TPS), a large jump from Bitcoin's 4.6 TPS and Ethereum's 15 - 20 TPS. 

Through its network of validators (known as a miner on a Proof-of-Work mining network) who each hold a stake in the network, Cardano is able to deploy smart contracts, facilitate the peer-to-peer exchange of value and provide the building blocks for dapp and token creation. 

What is ADA?

Let's first cover where the name came from. ADA is a nod to the person regarded as the "world's first computer programmer", the 19th-century mathematician, Ada Lovelace. Cardano on the other hand was named after the 16th-century Italian polymath Gerolamo Cardano. Each phase in the project's development is named after famed historical characters pertaining to maths, physics and literature.

While ADA can be used as digital cash to conduct payments, the cryptocurrency has a wider range of uses. The native token to the platform's operations, ADA, can be used to facilitate transactions, as a store of value, to participate in staking functionality, and to pay transaction fees on the network. 

ADA will also be used as a governance token in the future, allowing its holders the ability to vote on upgrades and changes on the platform. This is in line with Cardano's intentions to make the network entirely decentralized and community-driven, incorporating an automated treasury system that would oversee and execute all funding required. 

Cardano's Roadmap

Another interesting element to the Cardano network is that all five development phases are consistently worked on at the same time, as opposed to moving on to the next once one is complete. 

Of the five phases, each focuses on specific functionalities:

Byron - foundation (completed)

Shelley - decentralization (completed)

Goguen - smart contracts

Basho - scaling

Voltaire - governance

Where To Buy Cardano (ADA)

If you're looking to add ADA to your cryptocurrency portfolio, you can conveniently and securely buy the token through your Tap app. If you haven't done so already, simply download the app, complete the quick identity verification step and load your account with funds (crypto or fiat) with which you can buy ADA. The cryptocurrency will then be deposited into your unique ADA wallet, available for your perusal.

ICO is an abbreviation for Initial Coin Offering, a term coined supposedly in 2013 yet only gained popularity in 2017. ICOs were created as a method of raising funds for cryptocurrency projects in a crowdfunding manner. When people partake in an ICO, through funding it, they receive "shares" of that project in the form of cryptocurrency tokens.

This method is set up to help new projects find funding to build their project, platforms, or products. It's very similar to investing in a start-up in the hopes of a project becoming bigger and better through your investment contribution.

Mastercoin was the first ICO recorded back in 2013, raising a grand total of 5,120 BTC. Shortly after, Ethereum followed, and in 2014 raised roughly $18 million to build their project. There is clearly a great deal of success to be seen through ICOs, so let's see what all the fuss is about.

ICO vs IPO vs IEO

Let's look at IPOs, or initial public offerings, to learn more about where ICOs originated.

Similar to ICOs, IPOs were created as a way of gaining capital to better the businesses' infrastructures. While they are similar to a crowdfunding aspect,the primary distinction is in how investors are rewarded. IPOs will offer their investors shares, while ICOs offer digital currencies that can be used within their ecosystems or can be sold when the price increases.

Now that we understand how ICOs and IPOs work, let's discuss the differences when it comes to IEOs, or Initial Exchange Offerings. Again, this is another method used to raise funds for upcoming projects, but there are some key aspects that make IEOs different to IPOs and ICOs. While IEOs are also a crowdfunding method in the cryptocurrency industry, they use an exchange. Anyone can generally buy tokens from an ICO page, whereas IEOs use exchanges as the distribution mechanism.

In order to take part in an IEO, you must be a registered user of the exchange that the project is utilizing. While IEOs may be more transparent, they do push us towards a more centralized approach. There are also IDOs, Initial Dex Offering, Dex standing for decentralized exchange (increasing the data privacy aspect), but that's a topic for another day.

How they work

So now we know what ICOs are and how they differ from their counterparts, but now let's delve deeper into how ICOs actually work. As stated, ICOs are a way for cryptocurrency projects to raise money. When a project decides to launch an ICO it will generally underline the sale dates, the participation rules, and the buying process.

Usually, investors will need to choose currencies they are happy to accept in exchange for their tokens, such as Mastercoin accepting Bitcoin. There are some ICOs who will also accept fiat currencies as payment.

The projects' core purpose, its timeline, and how much money is needed to succeed should be released in their whitepaper. If the project does not raise enough money to meet the minimum funds needed, the money should be returned to those who contributed. This would classify the ICO as unsuccessful.

If the funding goal is met, the project will continue to pursue its original goals and contributors will be able to claim their tokens further along. Tokens will either be listed on notable exchanges later on or will be distributed using smart contract technology,This is something you should do more study on before contributing to an ICO.

Advantages and disadvantages

While ICOs have proven to be a massive benefit to project developers, there are some underlying issues and risks that may come into play. In order to give you the best chance of understanding ICOs we will need to cover all the pros and cons that come with ICOs. So let's see what you have to look out for:

Pros

        High potential profits

        Accessible to anyone (unlike IEOs)

        Money returned if unsuccessful (smart contacts)

        Transparency on fund usage (Blockchain)

        High liquidity

Cons

        No intrinsic value

        No legal guarantees

        Potential fraud

Frequently asked questions

Now that we have covered the basics, there are some additional questions the internet has and we thought we would take the time to answer them for you. These are the most frequently asked questions about ICOs, and while we have answered some here is a more TL;DR breakdown:

What does ICO mean?

ICO stands for Initial Coin Offering, a phrase coined by the cryptocurrency industry.

What is the purpose of an ICO?

ICO is a method used to raise funds for up and coming projects, think of it as an early investment phase.

How do I get an ICO?

That depends on the ICO you want to partake in, you will generally need to sign up to the ICO, deposit funds, and wait for the tokens to be distributed either through an exchange or smart contract. This differs depending on the projects' ICO parameters.

Is Bitcoin an ICO?

No, Bitcoin required no funding, tokens were mined and sold without the need for crowdfunding.

How many ICOs are there?

There is no definitive number out there but consensus shows that there have been roughly over 7,000 businesses that have attempted ICOs.

Are ICOs safe?

This is a tricky question and depends greatly on the individual project that is hosting an ICO, whether they are using smart contact technology, and how legitimate the team behind it is. ICOs can be safe, but they also carry risks, it is always best to do your own research before investing.

As there is no universal authority on ICOs there is certainly a lack of regulation in the space so be sure to do thorough research before parting ways with your money.

Closing Thoughts

That is all the essential information you need to grasp in order to better understand what an ICO is. From the textbook definition to its competitors, how it works, and everything in between. ICOs are popular for a reason, they offer a range of benefits to both projects and investors, but you should keep in mind that there is no benefit without risk.

While we can explain what an ICO is, we can not tell you whether to invest in an ICO. It's important to vet the project for yourself and see if it aligns with your interests, and more importantly if it has all the key components for a legitimate project and token.

While the world is increasingly accepting of ICOs from both businesses and retail investors standpoints, there are several alternatives available. We briefly discussed IEOs and IDOs, but more crowdfunding methods have flourished from the origins of ICOs, so be sure to explore those out too. At the end of the day, we hope we helped you better understand what an ICO is.

In this article, we’re exploring the most recent addition to the list of supported cryptocurrencies on the Tap App, one of the highly esteemed top 20 cryptocurrencies based on market cap, Algorand (ALGO).

What is Algorand (ALGO)?

Algorand is a decentralized blockchain platform that supports the development of a wide range of dapps (decentralized applications). The platform has been used to create dapps across industries like real estate, copyright, microfinance and more. Launching the same month as its ICO, the Algorand mainnet officially went live in June 2019. 

The Pure-Proof-of-Stake (PPoS) network was created to improve efficiency and transaction times within the crypto space, as well as reduce transaction costs. With no mining (due to the PPoS consensus), Algorand represents a more sustainable and energy-reserving contribution to the space. 

A unique aspect of the platform is that as new ALGO enter circulation with the creation of each new block, the newly minted coins are distributed to everyone who holds a certain amount of ALGO in their wallets. 

While the project is relatively new, it has received the backing of big names and has seen impressive company interest. In June 2021, Arrington Capital bet $100 million on the platform after launching a fund supporting initiatives building on Algorand, while fintech infrastructure provider Six Clovers launched a cross-border payment system on the platform. 

The platform was also selected to host the Marshall Islands CBDC. 

Who created Algorand?

The blockchain platform was created by Silvio Micali, a highly regarded contributor to the crypto space and recipient of the 2012 Turing Award. The MIT computer science professor was recognised for his fundamental contributions to “the theory and practice of secure two-party computation, electronic cash, cryptocurrencies and blockchain protocols.” 

The Algorand whitepaper was co-authored by Stony Brook University professor Jing Chen.

When first conceptualised in 2017, Micali wanted to create a platform that not only provided digital transactions but also tracked assets like titles and property. The platform also allows for the creation of smart contracts (decentralized digital agreements) and tokens. 

How does Algorand work?

The Algorand platform is divided into two layers: layer 1, responsible for ​​ensuring the network’s security and compatibility, and layer 2, responsible for more complex developments. 

Layer 1 supports asset creation, smart contracts, and atomic swaps between assets while layer 2 is reserved for more compound smart contracts and dApp development. These two layers allow the network to process transactions more efficiently, with simple transactions taking place on layer 1, while more complex smart contracts are executed off-chain. 

Through the pure proof of work consensus, the two-phase block production is conducted through a propose and vote system where users who stake ALGO are randomly selected to validate and approve each block as it is created. Stakers only need to hold 1 ALGO in order to generate a participation key necessary to become a Participation Node. 

These nodes are coordinated by Relay Nodes which are not actively involved in the verification process but are responsible for facilitating communication among the Participation Nodes.

The more of the native cryptocurrency a user holds, the more likely they are to be selected. This consensus ensures that the platform is secure, decentralized and able to process transactions in seconds as opposed to minutes (as on other networks).

Algorand is able to process over 1,000 transactions per second (TPS) and validate transactions in less than five seconds.

What is ALGO?

ALGO is the native token to the Algorand platform. As the newly minted coins are distributed to all users holding ALGO (whether on an exchange or in a non-custodial wallet) and not just the nodes verifying transactions, holders of the token are able to earn a 7.5% annual percentage yield (APY). 

A total of 10 billion tokens were minted, with roughly 6.8 billion in circulation at the time of writing. These tokens are gradually entered into circulation through predetermined distribution channels. The token distribution for ALGO is as follows:

• 3.0 billion. To be injected into circulation over the first 5 years, at first via auction.
• 1.75 billion. Allocated to participation rewards.
• 2.5 billion. Allocated to relay node runners.
• 2.5 billion. Allocated to the Singapore-based Algorand Foundation & Algorand, Inc.
• 0.25 billion. Allocated to end-user grants. 

How Can I Buy ALGO?

If you’re interested in accumulating this leading blockchain token, you can do so effortlessly through the Tap app. As part of a new string of supported tokens, Tap users will now be able to buy, sell, trade and store the cryptocurrency that everyone is talking about. 

You've likely come across the term "token" in your crypto ventures, or heard Bitcoin and Ethereum described as a token, but what does this all mean? In this article, we're breaking down what a token is, and how to distinguish a coin from a token and how it can be used as a tool to store value.

Token Definition

A token, in the cryptocurrency sense of the world, represents a particular asset or utility. It's worth noting in this item that tokens and cryptocurrencies are terms often used interchangeably however they technically differ. Tokens typically fall into one of the following three categories:

Payment tokens

These tokens allow users to purchase goods and services outside of the blockchain, offering an alternative currency. 

Security tokens

Similar to initial public offerings (IPOs) on the stock market, security tokens offer users an ownership stake or entitle the holder to dividends in a blockchain project. 

Utility tokens 

Utility tokens offer users access to a service within a particular ecosystem, similar to loyalty points on a Starbucks card. These points hold value within their own ecosystem but cannot be used outside of that. ‍

Coins vs Tokens

Getting more technical, when exploring coins vs tokens, tokens are categorised as crypto assets that have been built on top of another blockchain while coins are built on their own blockchain. 

Ether, for example, is the native token to the Ethereum blockchain, however, the platform allows developers to create a range of token standards on top of it. Based on this information, all ERC-20 tokens are therefore categorised as tokens as opposed to coins. 

USD Coin (USDC) and Tether (USDT) are therefore tokens as they are built on top of the Ethereum blockchain. While each network is operated by its own leadership, both use Ethereum's blockchain to facilitate all transactions.‍

How Are Tokens Traded?

Much like coins, tokens can be bought, sold and traded on exchanges, or sent directly from one wallet to another. This is facilitated by blockchain technology, in the same way that coins are transferred from one location to another. Unlike coins, which are all fungible in nature, tokens can sometimes be non-fungible, meaning that they are not identical in value and function. 

Tokens are sent using the wallet address of a recipient's blockchain-compatible wallet. The address is often represented by a barcode in the form of a QR code, or through a lengthy alphanumeric code. All transactions take place from the wallet holding the tokens and are sent directly to the wallet of the recipient without the need for a centralized authority like a bank. Tokens can typically be bought on exchanges, often with Visa or Mastercard, or exchanged between users.

How is an NFT Different from Cryptocurrency?

Non-fungible tokens (NFTs) are all different from each other as they each represent a real-world object, whether a digital piece of artwork or a bottle of fine wine. Bitcoin can be traded for anything around the world, whereas NFTs are unique in nature and while they hold value they cannot be used interchangeably. 

What Are NFTs Used For?

NFTs are used to represent a particular asset, whether it be physical or digital. When minted, these tokens will permanently represent that asset and cannot be changed. For example, one NFT could represent an apartment in London while another could represent a song by Kings of Leon. The possibilities are endless, and the marketplaces are huge.

Users can easily trade NFTs on marketplaces (through a website or mobile app) such as OpenSea or Rarible. Once you own an NFT you are credited with the ownership rights of the asset the NFT represents. Due to the nature of blockchain technology, this is permanently displayed on the network's public ledger for anyone to review. This process ensures that the ownership of an NFT cannot the changed and the information is available for anyone to credit.

Note that several blockchain networks currently support the minting of NFTs, and the holder will need a wallet specific to that blockchain in order to hold the NFT.

Are Tokens Regulated?

When it comes to regulation, countries around the world are currently drawing up legal frameworks to better implement cryptocurrencies into our current financial system. This includes the likes of tokens.

Once cryptocurrencies are regulated by government authorities, they could provide the world with unrealized use cases like being used to manage a prescription at a pharmacy or clinical services or to provide feedback to IT support. While there are plenty of tokens available on the market today, it's likely that this is only the tip of the iceberg in terms of their potential to improve issues faced around the world.

As you navigate the waters of the cryptocurrency market you're likely to come across a term called "coin burning". In this article, we're exploring the process used to manage the token supply of projects, a means for companies to manually alter the supply (and thereby demand) of a token's circulating supply. While not adopted by every project, coin burning has proven over the years to be successful in increasing the price of a digital currency.

What Is A Coin Burn

Diving right in, a coin burn is the process of removing a certain number of tokens from circulation by sending them to an invalid address, a "black hole" of sorts. This process is written into the project's code and implemented at various increments as outlined in the whitepaper. While Bitcoin doesn't make use of coin burning, many projects on the Ethereum network, particularly ERC-20 tokens, have been known to implement it.

Through the use of a smart contract, also known as a burn function, the network would remove a specified number of tokens from circulation, decreasing the total supply and thereby (hopefully) increasing the demand. Coin burns have been known to lead to an increase in price, as the supply-demand ratio is altered.

An Example Of Coin Burning

A top 10 cryptocurrency project underwent a coin burn last year that is believed to be the biggest layer 1 token burn to date. 88.7 million LUNA, the native coin to the Terra project, were burned in November 2021 following a vote by the community. This was effectively worth $4.5 billion at the time. A few days following the coin burn the LUNA token hit a new record high. 

The burn aimed to remove value from Terra’s community pool, but in reality, it simply moved the value from the pool to the individual holders of the cryptocurrency.

Bitcoin Cash and Stellar are two other high profile cryptocurrencies that have made use of the coin burning initiative. Shiba Inu is another cryptocurrency to have undergone a coin burn, although this wasn't the initial intention of the project. The project's developers gifted half of the SHIB supply to Ethereum creator Vitalik Buterin, who went on to donate 10% and burn the remaining 90%.

How Does Coin Burning Work?

Should a project wish to implement a coin burn they will need to create a smart contract. Smart contracts are digital agreements that execute when certain criteria have been met. Say a project wants to implement a coin burn every 200,000 blocks, they will create the burn function to include this instruction.

When this milestone is achieved, the coins will automatically move from the designated wallet to a wallet address that does not have a private key. Without a private key, these coins can never be recovered. The coins will then be sent from the one wallet address to the other and effectively be removed from circulation. The transaction (burn) will be added to the network's blockchain records and be available to view through the blockchain explorer.

The Downside To Coin Burning

Before you invest in a project that undergoes coin burning it is important to note that coin burning does not guarantee an increase in the coin's price. The increase in price will depend on the network, the market climate and the current sentiment. During the Shiba Inu coin burn, while the price rose considerably, it soon returned to a more stable and substantially lower level.

Coin burning can also be used by ill acting developers to deceive the community. Say a project has a total supply of 100 million tokens and allocates 10 million to the platform's developers. They could then burn 40 million tokens, increasing their hold to 60% of the circulating supply on the network.

As with all transactions conducted on the blockchain, all payments are irreversible meaning that once you burn coins they can never be recovered.

What Is Proof Of Burn?

Not to be confused with coin burning, Proof of Burn (PoB) is a consensus mechanism similar to Proof of Work and Proof of Stake. The model utilizes an element of coin burning in its mining practice and is known to use considerably less energy than its PoW counterpart.

The process requires miners to burn tokens in order to participate in the mining process. The more coins burned the more blocks they can create, meaning the more rewards (in the form of transaction fees) they can earn. Miners are still required to use mining hardware. The benefit of this is to provide a less energy-intensive blockchain network that can run optimally through a network of decentralized mining participants.

n the world of finance and technology, benchmarks are a vital tool for measuring performance and quality. A benchmark is a standard or point of reference used to evaluate the performance or quality of something, such as investment returns or the efficiency of software and hardware systems. This article will explore what benchmarks are, why they are used, provide examples, and explain how to use benchmarks to make more informed investment decisions.

What is a Benchmark?

A benchmark is a standard of comparison used to evaluate the performance or quality of something. In finance, benchmarks are often used to compare the performance of investments to a specific market index. For example, the S&P 500 index is a commonly used benchmark for evaluating the performance of a portfolio of stocks.
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Benchmarks are also used in the technology industry to evaluate the efficiency and performance of hardware and software systems. For example, a computer's processing speed may be benchmarked against industry standards to determine how well it performs compared to other computers on the market.

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Why are Benchmarks Used?

Benchmarks are used for a variety of reasons. In finance, benchmarks are used to evaluate the performance of an investment or a portfolio of investments. By comparing the performance of an investment to a benchmark, investors can determine whether their investment strategy is successful or not.
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In the technology industry, benchmarks are used to evaluate the efficiency and performance of hardware and software systems. By benchmarking a computer or a software system against industry standards, developers can determine how well their product performs compared to other products on the market.
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Examples of Benchmarks
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There are many different benchmarks used in finance. Here are a few examples:
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1. S&P 500 Index - This is a benchmark used to evaluate the performance of a portfolio of stocks in the United States. It is widely used by investors as a measure of the overall performance of the U.S. stock market.
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2. Dow Jones Industrial Average - This is another benchmark used to evaluate the performance of the U.S. stock market. It is based on the stock prices of 30 large U.S. companies.
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How to Use Benchmarks

To use a benchmark, you first need to select the appropriate benchmark for your needs. For example, if you are evaluating the performance of a portfolio of stocks, you would select a stock market index such as the S&P 500 or the Dow Jones Industrial Average.
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Once you have selected a benchmark, you can compare the performance of your investment or product to the benchmark. If your investment or product outperforms the benchmark, then it is considered successful. If it underperforms, then you may need to adjust your investment strategy or product development.
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How Do Benchmarks Help You Make More Informed Investment Decisions?

Benchmarks help investors make more informed investment decisions by providing a standard of comparison for investment performance. By comparing the performance of an investment to a benchmark, investors can determine whether their investment strategy is successful or not.

For example, if an investor's portfolio of stocks outperforms the S&P 500 index, then the investor can be confident that their investment strategy is successful. However, if the portfolio underperforms the S&P 500, then the investor may need to reevaluate their investment strategy.

Benchmarks also help investors identify trends in the market. By tracking the performance of a benchmark over time, investors can identify trends in the market and adjust their investment strategy accordingly.

Conclusion:

In conclusion, benchmarks are a fundamental tool used in finance and technology to measure performance and quality. They provide a standard of comparison that helps investors and developers evaluate the success of their investments and products.

Using benchmarks to evaluate investment performance and product efficiency can help you make more informed investment decisions. By comparing the performance of your investments or products to industry standards, you can determine whether your investment strategy or product development is successful or not.

Overall, benchmarks are an essential tool for evaluating performance and quality, and understanding how to use them is crucial for success in finance and technology.

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There’s no denying that the recent surge in Bitcoin adoption has largely been fueled by the incredible bull run. With mainstream media, large corporations, and more retail investors taking notice, many merchants have followed suit and added the original cryptocurrency to their list of payment options. As the market erupts, let’s explore what can you buy with Bitcoin exactly.

Bitcoin’s Surge In Adoption

While 2020 was a challenge for most industries, the crypto markets saw unbelievable gains. Despite the universal market destruction that was witnessed across the board, Bitcoin flourished from $3,870 in March to an all time high of $20,000 by the end of the year. Just one week into the new year and the cryptocurrency had doubled reaching $41,515. By 21 February the cryptocurrency was worth $58,330, almost triple the previous all time high.

The extended bull run was due to large firms moving their company reserves from fiat to BTC, with Tesla bringing a lot of media attention to both this pattern but Bitcoin in general. As more people sought to enter the market, more vendors, businesses and retailers sought to offer it as an alternative payment option. According to a study conducted by HSB in 2020, 36% of small-medium businesses in the US accept Bitcoin. This is also likely to triple in coming months.

What Can You Buy With Bitcoin?

As you’ll see below, almost everything. While not every store offers Bitcoin payments, there are plenty of services which offer gift cards for such stores that can be bought with BTC. Where there’s a will, there’s a way. Let’s dive into all the things available for purchase with Bitcoin. To make things a bit simpler, we’ve broken it down into the following categories:

Tech

Consumers can purchase everything from a VPN service (ExpressVPN) to cloud storage space (Mega.nz) with the cryptocurrency. Microsoft, Wikipedia and AT&T also grace the list, having accepted Bitcoin as a payment method for some years now. Unsurprisingly, the gaming platform Twitch also features crypto payments (they disabled them and then brought them back). There is even a digital library in San Francisco providing the world with “universal access to all knowledge” that operates off of Bitcoin donations.

Sports

Tech you can understand, but sports? Yes, that’s right. A number of large sports clubs around the world have chosen to embrace the digital currency movement. In America, the most famous to do so are the Miami Dolphins and the Dallas Mavericks, while across the pond in the United Kingdom the following football clubs are all in: Tottenham Hotspur, Crystal Palace, Brighton & Hove Albion, Southampton, Leicester City, Newcastle United, and Cardiff City. S.L Benfica, one of the oldest and most popular sports clubs in Portugal, has also decided to accept Bitcoin for everything from merchandise to game tickets.

Retail

Most famously the American retailer dealing with home decor, Overstock, is one of the largest retailers to accept Bitcoin. Home Depot and Whole Foods also joined the ranks through the Winklevoss Flexa spending app ‘Spedn’ that allows for seamless crypto payments.

Then there are companies that provide a middle ground enabling you to purchase goods from stores that don’t necessarily accept the cryptocurrency directly. This includes Purse.io that is most famously used for Amazon purchase with Bitcoin, and Gyft, a company that sells gift cards for popular stores in exchange for crypto. Gyft can be used for everything from Starbucks to Sephora to iTunes.

Travel

You’d be surprised how many travel companies are now offering purchases with cryptocurrencies. One of the first to cross over was Latvia’s national airline, airBaltic, which announced in 2014 that they would be offering the payment option. Since then a number of leading travel companies including Expedia, CheapAir, and Destinia have followed suit. Alternatively, you could purchase a trip to space with Richard Branson’s Virgin Galactic. There is even a specially designed travel company catering solely to Bitcoin shoppers, Bitcoin.Travel.

Food

Another industry to embrace Bitcoin payments with a number of top fast food chains embracing the crypto life in various corners of the globe. Multiple Subways around the world, Pizza Hut in Venezuela, 40 international locations of Burger King, and KFC in Canada have all joined the forward driven club.

BTC Tapping Into The Future

And then of course just about anything in Japan. If you’re looking for goods to purchase with Bitcoin, you can usually see from an online stores’ homepage if it is an option, or in a brick-and-mortar store there will usually be QR code at the checkout counter indicating that Bitcoin is accepted there. If you’ve found that Bitcoin payments are definitely for you, buy, send and spend BTC directly from your Tap app. What can you buy with Bitcoin through your Tap app? Just about anything thanks to the seamless payments integration technology.

As we explore the world of crypto assets, we take a look at the different types of crypto assets on the market and at the wide range of diversity in the new-age industry. As more people enter the market and start exchanging digital assets, the industry grows and expands to allow new variations.

Below we explore the vast diversity in the industry, from crypto assets used as money to ones that reward users for viewing a website. Each business offers a unique solution, and to navigate this we offer you guidance below.

What Are Crypto Assets?

The terms "crypto asset" and "cryptocurrency" can be used interchangeably. They both refer to a digital asset built using blockchain that can be transferred in a direct peer-to-peer manner. The first crypto asset to launch is Bitcoin, which entered (and created) the scene in 2009. Since then thousands of crypto assets have been created, each one with its own unique use case.

The Different Types Of Crypto Assets

While crypto assets might fall into one or more categories, each has its own set of rules and use cases. 

Payment-Focused

These crypto assets can be used to pay for everyday goods and services or as a store of value (in some cases). These include the likes of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), etc.

Stablecoins

Stablecoins are crypto assets that have their value pegged to a fiat currency or commodity. These crypto assets are designed to bypass the volatility synonymous with the crypto market. These include the likes of Tether (USDT) and USD Coin (USDC).

Privacy Coins

Privacy coins are digital assets that hide details of the transaction, such as the origin, destination and amount. These crypto assets offer untraceable monetary transfers. These include the likes of Monero (XMR) and ZCash (ZEC).

CBDCs

Central Bank Digital Currencies (CBDCs) are crypto assets built and maintained by banks. Used as digital currencies alongside the traditional currency, CBDCs are designed to provide a digital version of the local fiat to which the value is pegged. 

Governance Tokens

Common among decentralized finance (DeFi) protocols, governance tokens provide holders with a say in the platform and in future updates. 

Utility Tokens

Utility tokens will typically provide a service to the holder on the platform on which it was created. Commonly created using the ERC-20 token standard, utility tokens might represent a subscription on a platform or a use case specific to that ecosystem. 

Non-Fungible Tokens

Non-fungible tokens, also known as NFTs, are crypto assets that cannot be used interchangeably and instead hold unique and rare properties. Each NFT represents a singular function that cannot be changed.

How Are Crypto Assets Created And Distributed?

Before crypto assets are created the project's intentions are generally circulated through a white paper. In this white paper, the asset's tokenomics will be outlined which will cover how the asset is created and distributed.

Bitcoin, for example, uses a Proof of Work consensus which means that new coins are entered into circulation through miners solving complex mathematical problems. The network was designed to only ever have 21 million coins created, and new coins are slowly entered into the system each time a miner verifies and adds a new block to the blockchain. 

Ethereum on the other hand has no limit to the number of ETH that can be created. The platform is currently moving from a PoW to a Proof of Stake consensus, which alters the way in which transactions are verified, however, new coins still enter circulation through verifying transactions. 

XRP minted all its coins prelaunch and slowly release them into the system through a central authority while Tether creates USDT on demand. For each $1 sent, 1 USDT is created, which can later be removed from circulation should it be sold. 

The Future Of Crypto Assets

With the ICO Boom in 2017, the DeFi boom in 2020 and the more recent NFT Craze, crypto assets aren't going anywhere. With constant innovation and increasing adoption, crypto assets have become an integral part of the modern day financial landscape.

While mainstream adoption is on the rise, a few wrinkles still need to be ironed out. For one, regulatory bodies around the world are working toward creating legal frameworks in which these crypto assets can exist, while centralized banks are exploring whether CBDCs can co-exist with their physical counterparts. While the world seeks to figure these out, one this is for certain: crypto assets are here, and the industry is becoming bigger by the day. 

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Have you heard of the term “altcoin” but not exactly sure what that means? In this article we’re breaking down everything you need to know about altcoins, from the different types of altcoins and how they work, to how you can get your hands on them (buy altcoins). The crypto industry can often feel a little daunting, so we’re here to clear the air and help you establish a strong foundation of insight, knowledge and know how. 

Starting at the beginning, what are altcoins? Altcoins are all cryptocurrencies except for Bitcoin. Not too complicated, is it? Circling back to the early days of the crypto industry when there were only a few cryptocurrencies on the scene, any new coin that was introduced was referred to as an “alternative coin” (labelling it as an alternative cryptocurrency to Bitcoin), which was then shortened to altcoin. So when someone refers to an altcoin, know that they are talking about any cryptocurrency that is not the original (Bitcoin). Altcoins are still decentralized networks, with most of them utilizing blockchain technology.

How Many Altcoins Are There?

At the time of writing, CoinMarketCap reports that there are over 9,400 altcoins in the cryptocurrency industry. This number is increasing by the day, however it’s worth mentioning that these 9,400+ altcoins only make up 50% of the entire cryptocurrency market’s value. Bitcoin is still the most dominant cryptocurrency, with Ethereum the next bigger cryptocurrency. Ethereum is currently responsible for holding roughly 14.5% of the entire market’s value. As Ethereum is also an altcoin, this makes the “altcoin industry” worth $1 trillion. In general terms, one would rather just say the crypto industry.

The Different Types Of Altcoins

With an industry worth over $1 trillion, there is bound to be a wide range of variation. This is just the case with the crypto industry. There are a number of categories that have been created over the years, allowing for various altcoins to provide a new service to the industry. You can also expect to see tons of innovation in the altcoin space, as each new altcoin needs to either improve on the last one, or provide a different use case.

Each cryptocurrency is designed to solve a problem, either faced within the blockchain industry or outside of it, however, many of these have created a niche altcoin market. An example of this is altcoins focused primarily on providing anonymous transactions, these altcoins then fall into the Privacy category. We’ve detailed seven of the main categories below to give you an indication of the vast innovation and use case potential within the space. 

Payment Focused Altcoins

First and foremost, these cryptocurrencies’ primary aim is to provide a medium of exchange within the digital currency realm. Focusing on payment functionality, these digital currencies are akin to Bitcoin and often were created as a “better” version of BTC (through hark forks on the network). Some examples of this include Litecoin (LTC) and Bitcoin Cash (BCH). 

Protocol Focused Altcoins

Protocol focused altcoins are designed to allow developers to work on their blockchain network to create decentralized apps (dapps), smart contracts, and in some cases other cryptocurrencies. They provide space for innovation within the blockchain industry, and empower developers to learn and grow their blockchain understanding. Examples of protocol focused cryptocurrencies include Ethereum (ETH), Tron (TRON) and Neo (NEO). 

Privacy Focused Altcoins

As mentioned above, privacy focused cryptocurrencies provide users the opportunity to send private transactions that are entirely encrypted. While these networks often garner a bad name due to them being used for illicit activities, they are in essence not far from what Satoshi Nakamoto originally intended for Bitcoin. Each network uses slightly different protocols, however they all provide the means to send secure, anonymous transactions. Examples of privacy focused cryptocurrencies include Monero (XMR), Zcash (ZEC) and Dash (DASH).

Stablecoins

You’ve likely heard of stablecoins before. They are the digital currencies that are pegged to a fiat currency. Providing a stable market inside of what has become known as a highly volatile market (cryptocurrencies as a whole), stablecoins offer a hedge against market dips as well as an entry point for users who want to get a feel for the crypto industry. Examples of stablecoins include USD Coin (USDC) and Tether (USDT) which are both pegged to the US dollar, trading at a 1:1 ratio (i.e. 1 USDT will always be worth $1). Stablecoins also include cryptocurrencies pegged to the value of commodities such as gold and oil.

NFTs

NFTs (non fungible tokens) have had their fair share of mainstream media attention recently, especially after one NFT broke records when sold for millions of dollars. NFTs are actually unique crypto assets that cannot be used in the same way that other digital currencies can be. Each NFT holds unique characteristics that represent a one of a kind product, whether it be a piece of digital art, physical art, a house, or even a luxury handbag. These altcoins cannot be recreated, and hold all their transaction history (previous ownership) on a transparent blockchain. They also cannot be “spent” in the same way as other cryptocurrencies in that one an NFT is created, it has that purpose attached to it for life (unlike BTC which can be spent interchangeably).

CBDCs 

CBDCs (central bank digital currencies) are similar to stablecoins but are created and maintained by financial institutions like banks. These currencies’ value is pegged to the local currency, and allow countries to test the efficiency of digital currencies without the volatility. Many countries are in the development phase of CBDCs, however China is leading the pack having recently launched their testing phase. 

Utility tokens

Utility tokens are blockchain tokens that are unique to a particular platform. Many cryptocurrency projects have created utility tokens as a means of crowdfunding prior to their launch, while other projects create utility tokens to be used within the platform for goods and services. Typically, utility tokens have been ERC-20 tokens, and might allow a user access to a new level of a game or to a subscription of some sorts.

How to Get Altcoins

Having gained an understanding of altcoins, individuals eager to explore the thriving altcoin market can effortlessly leverage the capabilities of the Tap app. Tap offers seamless access to an extensive spectrum of cryptocurrencies, including notable names such as Ethereum, Litecoin, XRP, and an assortment of others. It's crucial to bear in mind that not all cryptocurrency wallets exhibit compatibility across the board. For instance, attempting to house an altcoin like XRP within your Bitcoin wallet or stow Tron within your Ethereum wallet would not work due to their incompatibility.

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Cryptocurrency adoption is a hot topic within the blockchain industry at the moment. Beyond regulation and government legislation around the ecosystem, the deregulated aspects of the technology, which represents its core ideology, is gaining more traction as the days go by. These are the technologies that provide the easiest way to trade cryptocurrencies.

Now let’s break that down. Without paying too much attention to what the government and regulatory agencies are saying about cryptocurrencies, innovations are springing up that are making it easy for anyone to use cryptocurrencies without complications. It is such developments that can influence the adoption of Bitcoin and cryptocurrencies, not government rules and regulations.

The above statement is not an attempt to discredit the efforts and good works of governments and regulatory agencies. The roles that they are playing is important and could help in addressing some of the issues that relate to the emerging technology.

How Are Cryptocurrencies Traded?

However, the real deal in the industry lies within the ecosystem. This is to say that the rate of adoption depends on instruments that can enable industry participants to express themselves with ease. To achieve this, trading and exchanging cryptocurrencies must be simplified and made as easy as possible.

The most common way to achieve real value with cryptocurrencies today is by using any of the available exchange platforms. To achieve this, traders often have to go through rigorous registration and onboarding processes. Even after registering, the process of executing a trade and extracting usable value involves certain steps that are not always very convenient.

Some trading processes involve multiple steps that take a lot of time to complete, while others could involve relatively huge fees, or multiple fees as the case may be. The above mentioned difficulties are some of the barriers that critics of the technologies have relied on to make negative assumptions on the future of the industry.

The change that has come for cryptocurrency today has redefined the entire process, making it as seamless as possible. In the actual sense of it, the new innovation by tap is providing the easiest way to trade cryptocurrencies and can be implemented with other existing systems without differentiation.

Where Can I Buy Altcoins?

First of all, the tap platform is a one-stop shop for a number of tradable cryptocurrencies. The platform hosts multiple  cryptocurrencies, making it unnecessary for traders to jump from one platform to another in search of particular coins or tokens.

Most cryptocurrency traders operate from single exchanges, limiting themselves to specific conditions like trading fees, even when they are not very favourable. Tap helps traders to overcome this barrier by linking to multiple exchanges at the same time. What happens is that during a trade, our middleware platform scours the major exchanges and finds the most favourable rates and fees combination for the trader. Therefore, by using tap, you are automatically connected to multiple exchanges simultaneously.

Now what else? For a lot of users, this is the ultimate game changer, as far as cryptocurrency adoption is concerned. Apart from being able to trade efficiently with the most competitive exchange rates available, you spend your cryptocurrency directly by using the tap app and tap prepaid Mastercard® . This works like any other  Mastercard and can be used anywhere in the world with a simple conversion on the app before swiping. This is the real definition of VALUE DELIVERY.

Who Can Use Tap?

These services provided by tap makes it extremely useful and suitable for all classes of cryptocurrency users.

• The beginner, who before now would need to sign up on an exchange, buy Bitcoin with fiat before taking on any other adventure in the crypto world, has been rescued from all the stress. All you need is to sign up on tap and execute all your trades directly from one spot.
• The experienced trader/investor who will normally jump between exchanges and rotate around BTC and ETH in order to purchase other altcoins has been delivered from the multiple steps and associated charges. Direct trading on tap is the final solution.
• Finally, international travel has been made easy. There is no more need to worry about international exchange rates, or carrying multiple credit or debit cards. The tap prepaid Mastercard is a universal element that will assist you exchanging value in any currency worldwide. Debit is affected on the holder’s digital wallet as Mastercard settles the transaction in the background in fiat.

The cryptocurrency industry is undergoing significant evolution and the rate of change within the industry is indeed impressive. Solutions that are enabling adoption are on the increase, and this particular innovation by tap is already delivering the easiest way to trade cryptocurrencies.

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With over 425 million cryptocurrency users worldwide, growing 8,000% since just 5 million users in 2016, cryptocurrencies are transforming how businesses operate in today's digital world. This article explores the numerous benefits crypto accounts provide companies, regardless of their size or industry. 

From reducing costs through lower fees to enabling smooth cross-border payments, they open up new opportunities. Below we also examine the potential of smart contracts and blockchain technology to streamline processes, heighten security, and minimise fraud risks. Let’s explore how embracing crypto can propel your business to the forefront of technological innovation.

Why businesses are using crypto accounts

Although investment opportunities and value growth associated with cryptocurrencies have garnered substantial media attention, far less coverage has been dedicated to the benefits that cryptocurrencies offer businesses. This aspect of cryptocurrencies is perhaps poised to be the most dynamic and exciting area for development and growth moving forward.

Below we explore the numerous advantages that crypto can offer businesses, more so through dedicated crypto accounts. These accounts minimise overhead costs by offering lower transaction fees compared to traditional methods. They also facilitate easy access to high-yield investment assets, enabling portfolio diversification and potential substantial returns. Another advantage of crypto business accounts is that they can streamline cross-border payments by eliminating intermediaries, benefiting companies operating globally.

The decentralised nature of cryptocurrencies also enhances security and transparency through blockchain's immutable ledger, mitigating fraud risks. As adoption continues growing, having a crypto business account allows companies to capitalise on these benefits. It gives them a competitive edge, unlocks growth opportunities, and positions them at the forefront of this technological revolution while maximising profits.

• 46% of merchants in a recent survey say that they have integrated cryptocurrency payments into their accepted payment methods.
• The primary reason cited by 82% of surveyed merchants for accepting crypto as a payment method is its elimination of middlemen.
• B2B cross-border crypto payments are expected to reach $56 trillion by 2030, fueled by growth in big companies and small businesses alike, along with the rise in digitization.

As ownership increases, more businesses are accepting crypto payments than ever before

• The countries leading in crypto ownership are India, China, and the United States, ranking as the top three, while countries experiencing significant inflation or financial turmoil, like Turkey and Argentina, exhibit higher rates of crypto ownership compared to other countries of similar economies. 
• According to data from TripleA, 7.23% of the population in India, 4.08% in China, 13.22% in the U.S., 20% in Vietnam and 6.40% of the population in Pakistan own cryptocurrency, with just the top 5 countries counting for 242,166,772 crypto holders. 
• As of September 2023, 15,174 businesses worldwide accept Bitcoin, with around 2,300 of those businesses operating in the US.
• The leading sectors embracing Bitcoin include Gambling, Tourism, Banking, Food, and Retail industries.
• According to a recent Juniper Research report, the adoption of blockchain for cross-border settlement is projected to generate substantial cost reductions for banks, soaring from $301 million in 2021 to $10 billion by 2030.
• There are over 37,000 crypto ATMs worldwide, making it easier to use crypto payments for everyday purchases.

The future of crypto salaries

As crypto payments become more commonplace, both employees and employers are recognizing the benefits of being paid and paying in cryptocurrencies. 

For employees, receiving salaries in crypto provides an opportunity to diversify their investment portfolio and potentially earn higher returns. It also facilitates seamless cross-border transactions, which is particularly advantageous for remote workers. 

On the other hand, employers can reduce administrative costs associated with traditional payroll systems and currency conversions by paying in crypto. Moreover, crypto payments ensure transparency and security through blockchain technology, mitigating the risk of fraud or disputes. With the growing adoption of cryptocurrencies, crypto-based salaries are emerging as an attractive option that offers advantages for businesses and their workforce alike.

• A recent survey found that over 40% of employees would consider having part or all of their salary paid in crypto.
• Stablecoins ensure the stability of wages paid in crypto, making it far more accessible and popular than ever before.
• The stablecoin market has a market cap of $148.7 billion at the time of writing. 
  

Businesses and smart contracts

Smart contracts are digital contracts built using blockchain technology that automatically execute when the predetermined criteria have been met. With the instantaneous and low-cost nature of crypto transactions, along with the potential for highly secure 'smart contracts', blockchain technology can be used to minimise fraud and legal disputes arising from business contracts. 

Below we look at several examples of how large corporations are implementing blockchain technology and smart contracts:

Walmart employs blockchain technology and smart contracts to develop an advanced platform for tracing the supply chain of food products. Their goal is to reduce waste and enhance food safety standards.

JPMorgan Chase pioneers the Quorum platform, revolutionising the blockchain industry by enabling companies to create and implement smart contracts for various purposes, including supply chain management and financial transactions.

Maersk, a global shipping giant, introduces TradeLens, a blockchain platform aimed at transforming their supply chain processes. Through smart contracts and automation, they enhance efficiency and optimise costs throughout the entire process.

Microsoft introduces the Azure Blockchain Workbench, empowering companies to develop and deploy smart contracts across diverse blockchain technologies.

IBM has launched IBM Blockchain, a groundbreaking platform enabling companies to create and execute intelligent agreements for applications like inventory management and digital identity verification.

• The smart contracts market size is expected to increase from $2.2 billion in 2023 to $8.79 billion in 2030, largely fueled by the growth of dapps (decentralised applications).
  

Crypto payments are the future for businesses

As crypto payments become more widely accepted and useful on a day-to-day basis for ordinary consumers, more and more employees are interested in being paid in crypto, which can have significant advantages for both them and their employers.

Similarly, for businesses involved in hiring remote workers in other countries, using crypto payments can reduce the tax and administrative burden of paying their wages while also ensuring more of their pay ends up in their pockets rather than in a bank’s annual profit statement. 

Finally, the potential for smart contracts to revolutionise cross-border trade is only now beginning to be realised, meaning there truly has never been a better time for businesses of all sizes to explore how cryptocurrencies can help fuel their growth in 2024 and beyond.

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As the Emerging Payments Awards enters its 14th year, the prestigious awards programme has released the finalists across several categories. Designed to celebrate innovation and collaboration within the UK payments industry, the awards are well respected in the industry and provide an accolade of achievement to the recipients. 

This year, Tap Global has been recognised for several awards based on contributions we’ve made to the industry including the benefits we provide to end-users, our innovative features and the proven evidence of our success in the market. Tap has been shortlisted for three awards falling across the categories outlined below, winners will be announced in October 2021:

• Best B2C Payments Programme
• Best Use of Crypto in Financial Services
• Leading Financial Services or Payments Start-Up
  

All nominations are based on the companies’ contribution to the payments industry and illustrate a significant impact they have made when it comes to supporting and providing payment solutions to both consumers and businesses. Nominations are chosen by an independent panel of 58 judges, with this year’s panel including the likes of:

• Anna Maj FinTech Leader, Senior Advisor at Truffle Capital and Senior Lecturer at CFTE
• Jill Docherty, Business Development, UK & Ireland, Visa
• Martha Mghendi-Fishe, Founder & Executive Board Chair, EWPN
• Mark Walker, Co-founder & COO Editorial Director of The Fintech Power 50 and The Fintech Times
• Joanne Dewar, CEO of Global Processing Services
• Nikki Evans, CEO of EMEA and EML
  

“It’s an honour to be shortlisted for this award which further recognizes the added value Tap brings to market and the benefits for our end-users. None of this would have been achievable without the hard work of our teams and the support of our partners”, says David Carr, CEO of Tap Global.

As one of the first companies to launch a crypto prepaid payment card in the EU in 2020, our cryptocurrency-to-fiat prepaid Mastercard and smartphone app allows users to navigate the crypto markets with ease, confidence and certainty. 

The intricately designed backend includes proprietary AI middleware that connects the Tap app to multiple exchanges, automatically validating available liquidity and selecting the most competitive prices, while executing trades in a matter of seconds. With the technology, users are able to convert crypto to fiat instantly, providing the convenience of using the Tap Card to pay for goods and services or at ATMs anywhere that Mastercard is accepted. 

Through the Tap app users can manage their crypto and fiat portfolios, securely send and receive supported crypto and fiat currencies, view their transaction history, manage their card and even view their PIN. While the Tap card (across three account levels) offers users full EEA coverage, a named EUR IBAN and/or GBP Sort Code and Account Number, as well as secure, offline, cold storage behind a multi-signature wallet. Together the Tap app and card create a fully integrated crypto-to-fiat ecosystem.

Adding to the excitement, Kriya Patel, CEO at Transact Payments, a partner of Tap’s, added that, “The EPA awards are some of the most prestigious awards in our industry recognising companies that are making a real difference in driving innovation in payments. We’re delighted to be working with Tap Global and being shortlisted for this award.”

Whether dissecting crypto or fiat currencies, the foundations remain the same: the currency must serve as a store of value and function as a medium of exchange for goods and services. While both these currency options tick those boxes, cryptocurrencies tend to also be followed by a dark cloud of volatility in the financial sector. 

Market volatility is a natural byproduct of a developing market, however, it can also cause many losses if not managed correctly. When the crypto markets go through high levels of market volatility they tend to get discredited with being a viable payment option. After paying withness to the Bitcoin market swings, several individuals recognised this flaw in the digital currency space and created a solution, "the stablecoin". 

In this article we establish what is a stablecoin is, how it fits into the financial landscape and explore the pros and cons of these digital currencies.

What Is A Stablecoin?

Stablecoins are digital currencies that harness the benefits of being a decentralized, blockchain-operated currency without volatility. Backed by any currency or commodity, stablecoins are pegged to the value of their underlying asset and managed and secured by their relevant platforms. For instance, Tether is pegged to the US dollar while Tether Gold is pegged to the price of gold and Tether EURt is backed by the Euro. 

These currencies operate like any other cryptocurrency, using blockchain technology to maintain and operate the network, but do not fluctuate in value based on supply and demand. Rather the price remains consistent with the asset it is pegged to, providing a better tool for digital payment transactions.

How Do Stablecoins Maintain Their Price?

While we've established that stablecoins are pegged to a commodity and reflect that price, let's cover how exactly that is achieved. Using fiat-backed stablecoins as examples, the companies behind these coins are required to hold a US dollar equivalent for each coin in circulation (or Euro if the stablecoin is pegged to it). 

These funds, also referred to as reserves, are either held in bank accounts or can be a combination of cash and short-term U.S. Treasury bonds. Most of the companies issuing stablecoins conduct third-party audits to prove that their reserves are at the correct levels and release this information to assure users that their coins are always worth $1 (or the currency-backed equivalent). 

Why Have Stablecoins Become so Popular?

The first stablecoin to enter the market was Tether in 2014, pegged to the US dollar. Tether is currently the third-largest cryptocurrency based on market capitalization, illustrating its vast popularity. The second biggest stablecoin currently on the market is USD Coin, also backed by the US dollar, which sits in the top 5 biggest cryptocurrencies with an equally impressive trade volume. Both these coins have provided valuable talking points within the industry as their market caps and adoption increase and they climb the ranks of the biggest cryptocurrencies.

Due to their resistance towards volatility, stablecoins have increased in popularity and are more widely used for conducting business around the world and executing cross border payments.

The Pros Of Stablecoins

Stablecoins are popular options for both businesses and individuals conducting business across borders. Below we outline the top benefits that stablecoins present to the market:

Digital Currency

The obvious first benefit of stablecoins is that they are maintained by blockchain technology and able to conduct international transactions in a much shorter time frame and for less cost than fiat currencies. The fast settlement times make these currencies an excellent, cross-border medium of exchange. They are also easy to use as they operate from wallets in similar ways to traditional cryptocurrencies.

Zero Volatility

Due to the nature of stablecoins being pegged to a fiat currency or commodity, they typically experience little to no high volatility trading periods resulting in a more reliable currency with the benefits of blockchain technology. Pertinent to increasing its adoption.

Hedge Against Failing Markets

Stablecoins have become increasingly popular for traders to hedge against other cryptocurrencies when markets experience a decline in price. Stablecoins allow traders to quickly liquidate their digital assets and easily reenter the market when the price stabilizes. 

The Cons Of Stablecoins

Centralisation

While blockchain technology and cryptocurrencies celebrate the notion of being decentralised, stablecoins do bring in a nature of centralisation, particularly when it comes to the backing of the assets. Ensuring that each coin in circulation is backed by an equal reserve value requires a team that leans the operation more toward a centralized structure.

Transparency

Several stablecoins have been called out publicly for not being transparent with their reserves. Tether, for example, has seen much public outcry concerning whether the company has the correct amount of reserves, leading to fines and regulations imposed by the US government. They have since released a report on the current reserve holdings of the company. 

In Conclusion

Many traders have incorporated stablecoins into their portfolios, to have as a hedge against falling crypto markets or falling fiat markets. These digital assets are also used by businesses around the world to conduct payments with the benefits of digital currencies and without the risk of volatility. Through the Tap app, users can now access and purchase USD Coin (USDC) as well as Tether (USDT). The sleek design of the app interface makes it easy for users who want to buy or sell cryptocurrencies with fiat currency through their phones in a click. 

When it comes to choosing a stablecoin, consider the projects behind it, the liquidity and the ease of use in terms of wallet compatibility.

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In this article, we’re guiding you through the intricacies of the e-money licence: what it means, who needs one and of course, how it affects you, the consumer. This new wave of regulation has been put into place to not only safeguard the consumer but also to put measures in place to identify and stop fraudulent activity. 

What Is Electronic Money (E-money)?

Before we dive into the licencing requirements, let us first take a look at what electronic money is defined as. Essentially, e-money is a digital version of cash. It maintains a monetary value that can be used to make payments and various transactions, typically over the internet, or through a phone or card. 

E-money products are either software-based or hardware-based and are responsible for electronically storing the monetary value. Software-based products are used on computers and tablets and require an internet connection (like PayPal for example) while hardware-based products encompass cards that have a chip card and do not require an online connection (for example, Square). ‍

What Is An E-money Licence? 

The e-money licence is a regulatory licence that authorises an electronic money institution (EMI) to conduct business. EMIs represent the digitisation of financial services and are authorized to issue money as well as provide payment cards, e-wallets, and IBAN accounts. While banks may provide a similar service, they require an alternative licence as they are able to provide a greater range of services.

 In a nutshell, an EMI is considered as such if it engages in the issuing and redeeming of electronic money (e-money), cash withdrawal, deposit and payment services, remittance services, debit or credit transfers, payment initiation and execution services, and account information services. They may conduct these services only if they have the proper licensing.‍

How Does It Protect The Consumer?

While regulation and consumer protection are the driving force behind e-money licences, there are also several other reasons as to why the regulatory framework has been put into place. The licence is designed to provide businesses with the opportunity to gain access to the e-money market, to facilitate innovation in secure e-money services, and to build healthy competition in a secure market. 

E-money licences are obtained to safeguard a consumer’s funds should the EMI become insolvent. This operates in an entirely different manner to a banking licence. Under the proper regulation, EMI’s can choose to do either of the following options to safeguard consumer funds (funds provided by customers in exchange for the issuance of e-money):

• deposit the funds into a segregated client’s funds account with an authorised credit institution, or
• acquire insurance that will cover the risks associated with the client’s funds.

This ensures that the consumer is always protected against loss of funds, and will be compensated accordingly should the situation present itself. It is imperative that consumers only choose EMIs with the correct e-money licences. 

How Much Money Is Protected With The E-Money Licence? 

According to the FCA regulations, the EMI is responsible for establishing the appropriate organisational arrangements to ensure that the safeguarded funds are at all times protected. 

As mentioned above, this can be done by either storing the deposited customer funds in a separate account (different from the institution’s working capital and other funds) or by ensuring that they are covered by an appropriate insurance policy or comparable guarantee. 

While licenced banks work in conjunction with the Financial Services Compensation Scheme (FSCS) and only insure users up to ￡85,000, EMIs are required to protect 100% of the consumers’ funds. 

According to the licence, EMIs are required to safeguard all funds deposited on the platform and not just a portion as per the licence required by the banks. 

While EMIs take several other precautions to protect consumer funds, the e-money licence ensures that the most fundamental legal requirements are met, granting the company the right to legally operate.  

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Hearing about crashing (global) markets doesn’t immediately sound like a good time to get involved in a new asset class, however, there might be some logic to this. While many on the fence are wondering if it’s too late to enter the crypto market, we’re taking a broader look at market timing and estaxblishing if now is a good time to get involved. 

The State of Crypto in 2021

2021 was a big year for cryptocurrencies. A big year for prices, and a big year for adoption. Many large companies optto move their US dollar reserves into Bitcoin, while many others incorporated cryptocurrencies into their already established services (PayPal, Square, etc.). El Salvador officially made Bitcoin a legal tender, and the Bahamas and Nigeria launched their own CBDC (Central Bank Digital Currencies). 

With adoption soaring, it came as a big surprise when the markets took a turn and entered a bear trend. Observing the bigger picture, this was an accumulative result of the conflict in Ukraine, the highest inflation rate increases in decades (globally), and the demise of two big cryptocurrencies (TerraUSD and Celsius).

Is it still worth entering the market?

Bitcoin, the biggest cryptocurrency by market capitalization, tends to set the path for other cryptocurrencies when it comes to bull and bear trends. Evaluating Bitcoin’s success, and mapping a path for its future potential, provides an insightful look into the market’s trajectory. 

Despite trading at lows last seen in late 2020, Bitcoin still displays an ROI of 14,400%. The cryptocurrency has also seen a substantial increase in the number of wallets created, with a 450% increase in users in the last five years. 

Looking at year-on-year growth, there were 15.2 million wallet holders in July 2017, 26.82 million in 2018, 40.91 million in 2019, 52.03 million in 2020, 75.11 million in 2021 increasing to 83.4 million users in July 2022. 

Crypto use cases

We’re all aware that Bitcoin has become a powerful store of value in the last several years, and other cryptocurrencies have turned early adopters into millionaires. But what purpose is crypto serving, and how much value does it contribute to?

Bitcoin was created as a peer-to-peer cash system in 2009, and while it still serves this purpose, it has ignited an industry far beyond just digital currencies. The decentralized finance industry is currently worth $43 billion, and the NFT industry was worth $41 billion in 2021 and is expected to grow 35% in the coming five years.

Blockchain and cryptocurrency development in recent years points to a massive trend in decentralized applications (dapps) branching from the “money” space to the technology and tech app space.

Timing the market

Without sugar-coating it, timing the market (finding the right moment to enter and exit the market) is notoriously difficult. While the aim is to buy low and sell high, few traders outside of professional circles are able to successfully execute this. 

Having said that, many savvy investors are currently using the market downturn to accumulate Bitcoin, Ethereum, and other cryptocurrencies at the low price that they are currently trading at. While there is speculation that these prices could decrease further, the potential for them to realise previous highs is probable (based on trading history and trading chart analysis). 

While price points obviously make a significant difference in when you’re willing/able to enter the market, evaluating the fundamental value and long-term prospects also contribute to this decision. Users who believe wholeheartedly in the fundamental value of Bitcoin (or other cryptocurrencies) have no problem entering the market when prices are not favourable.

Look to Michael Saylor, the founder and CEO of Microstrategy, for an example of this. Saylor is such an advocate for Bitcoin that the company has continued to purchase Bitcoin with little regard to how high the price might be. 

So, is crypto the right fit for you?

With large firms like JPMorgan, Morgan Stanley and Goldman Sachs exposing themselves and their clients to cryptocurrencies, it solidifies the case that cryptocurrencies are here to stay. The real question is, whether it’s a proper type of asset for your risk appetite. 

When determining whether it’s a coherent idea to enter the crypto market, consider the golden question of any investment: do you believe that the value and user base are more likely to strengthen or decrease over time?

With the recent rise in meme tokens and dog-themed coins, any coins with a Shiba Inu (a Japanese breed of dog) mascot seem to attract all the right kinds of attention. With the real Shiba Inu (SHIB) token winning "investment vehicle" of the year in 2021 after posting unbelievable gains, many are still wondering whether Shiba Inu is still a good token?

Where Did It All Begin?

A golden rule of getting in crypto is to understand exactly what you're buying in before taking the plunge. Before we explore Shiba Inu's history, we must start at the beginning with Dogecoin. Dogecoin was the original meme token and entered the crypto scene in 2013. The coin was designed to provide a "light-hearted" alternative to Bitcoin, poking fun at the seriousness of the crypto community at the time with its Shiba Inu logo. 

As it turned out, Dogecoin built a strong and loyal following that has stuck by the coin ever since. It wasn't until 2020 when Tesla CEO Elon Musk became vocal on Twitter about the cryptocurrency that DOGE truly went viral. 

What is Shiba Inu Coin?

Musk's interest in Dogecoin aligned nicely with the launch of Shiba Inu, which officially went live in August 2020. It wasn't long before SHIB climbed the ranks and became the biggest meme token on the market based on market capitalization, albeit for a brief moment. While it was dubbed in comparison as the "Doge Killer", Dogecoin still held the most value. It's worth noting that each time Musk mentioned Dogecoin in writing, Shiba Inu enjoyed some of that success and popularity as displayed by its growth.

Shiba Inu is an ERC-20 token built on the Ethereum platform that powers the Shiba Inu network. The platform features a range of products, from an exchange to an art incubator, and is compatible with a wide range of apps due to its Ethereum based nature. Trading for a fraction of a US cent, Shiba Inu offers a cost-effective way to enter the crypto market. Several businesses have also started accepting the cryptocurrency, allowing customers to pay for sales with SHIB.

How Is Shiba Inu Different From Dogecoin?

A great place to start when trying to understand SHIB is to determine the differences between these two biggest meme tokens. Starting with Dogecoin, the network provides a fast and cheap peer-to-peer payment system that is commonly used for tipping on social media platforms. 

Shiba Inu on the other hand is a little bit more complex. The platform provides a decentralized exchange (DEX) known as ShibaSwap which allows users to earn interest, as well as two other tokens, BONE and LEASH. The project describes itself as an experiment in decentralization. 

Shiba Inu is built on top of the Ethereum protocol, with the tokens created using various token standards, SHIB being an ERC-20 token. This makes it highly compatible with ETH wallets and most DeFi apps, while DOGE requires a specific wallet. These are all reasons as to why investors are calling it the Doge Killer.

Does Shiba Inu (SHIB) Have a Future?

In 2021, Shiba Inu saw gains of 53,241,775%. Investors that bought $2 worth of SHIB on 1 January would have been sitting on millions of dollars worth of returns at the height of the bull run. That's enough to make any digital currency enthusiast look twice. 

So far in 2022, the markets have been predominately down, with Bitcoin and Ethereum falling roughly 35% from their highs in November. Shiba Inu on the other hand has lost around 70% of its value since its all-time high in October 2021. Despite this, it has seen upward swings since, gaining a large amount of value in early February. 

The surge is believed to be contributed to by an Italian fast-food chain called Welly's. Welly's is also Shiba Inu-themed and accepts the cryptocurrency as a form of payment. Two other believed catalysts are the upcoming Shibarium (Shiba Inu's latest blockchain project) designed to reduce transaction fees and the project's vocalized intentions of entering the metaverse. 

Can Shiba Inu Coin Reach $1?

A popular question among crypto afficionados is whether Shiba Inu can reach $1. While there is certainly speculation in the market that this is possible over a substantial period of time, as with any cryptocurrency there is no guarantee on how much money it will be worth in the future. With the price affected by supply and demand economics, there will need to be a considerable amount of hype and demand for the cryptocurrency in order to it to reach that value.

While Shiba Inu could be a promising token should it skyrocket again, it is still considered to be a risky token. The cryptocurrency certainly has an attractive price point and a number of use cases, however, it is also in its early stages as a crypto and is currently less widely accepted when compared to other cryptocurrencies.

As the world waits on authority news regarding the regulatory framework surrounding cryptocurrencies, there are definitive hurdles that need to be reached before the Shiba Inu coin reaches $1, should it do so. There are currently over 545 trillion SHIB in circulation. For your protection, ensure that you never put more funds than you're willing to lose.

How Can I Buy Shiba Inu In The UK?

In love with SHIB or Shiba inus in general? Should you wish to purchase some Shiba Inu (SHIB) with your British pounds (GBP), you can do so easily and securely through the Tap mobile app, from where you can also store the tokens. Tap accepts GBP and supports faster payments for lightning-fast top-ups while allowing users to buy, sell, and engage in a number of cryptocurrency markets and services.

How Can I Buy Shiba Inu In Europe?

In love with SHIB in europe? We got you covered. Should you wish to purchase some Shiba Inu ( SHIB ) with Euros, you can do so with ease and securely through the Tap mobile app, from where you can also store the tokens. Tap accepts Euro and supports SEPA transfers to enable all EU & EEA traders and investors to buy, sell, and engage in a number of cryptocurrency markets and services. 

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If you have stayed around the cryptocurrency market long enough, then you will be familiar with the term “crypto whale”. This term usually refers to big players in the crypto space that are known to hodl and move around large amounts of any given coin, often affecting the price while they’re at it. We’ll discuss how whales are affecting the cryptocurrency market by considering the following:

Who is a Whale

In the cryptocurrency market place, the term whale is used to describe any individual or group that controls a large amount of Bitcoin or cryptocurrencies. Just like the size of the whale distinguishes it in the ocean, portfolio size of these individuals or groups sets them apart in the crypto industry.

It is estimated that roughly 40% of all the Bitcoins in existence are held by only about 1,000 people. That is some huge volume to deal with, no matter the ratio among them. Some of these whales are well known individuals and groups. Roger Ver, the Winklevoss Twins and Charlie Shrem are some of the well known individuals that control large volumes of Bitcoin. While Fortress Investment Group and Pantera Bitcoin Fund are examples of group whales.

The majority of today's whales consist of early adopters who allocated substantial funds to acquire Bitcoin and cryptocurrencies during periods of lower prices. The Winklevoss twins, for instance, directed $11 million into this venture, a fraction of their payout from a Facebook intellectual theft lawsuit involving Mark Zuckerberg. This endeavor granted them ownership of 100,000 Bitcoins, which are now valued at over $1.1 billion.

Do Whales Manipulate the Market?

Most whales are hodlers, therefore are expected to retain their holdings over an extended period of time, especially as Bitcoin seems to retain so much upside potential. However, from time to time, since the blockchain network is open and everyone can view the transactions that go on, we see huge volumes being traded. Apart from that, whether in the buying or selling direction, the trades of these whales always have an impact on the market.

Smaller traders most often seek to ride the trend on which whales are trading. Therefore, when these trades happen, the market seems to follow the whales. This is one major way how whales are affecting the cryptocurrency market. They determine the direction.

This kind of behaviour has caused some suspicion within the industry with people accusing the whales of manipulating the market. Although this behaviour is frowned upon, it isn’t technically breaking any laws. A typical scenario illustrating this is when whales initiate a massive sell-off of Bitcoin or any other crypto. Smaller traders will follow suit after the price has dropped. Afterwards, the whales buy back their crypto at a much cheaper rate, making a lot of money in the process.

However, it is also fair to realise that most of these whales are long term investors who are astute hodlers of Bitcoin and cryptocurrencies. Therefore, we cannot always accuse them of manipulating the market, even though they have the capacity to do so.

How Can You Trade Like a Whale?

What we should be concerned about is if there will come a time that these whales will want to recover their capital. Would there be a massive sell-off of Bitcoin and cryptos, and how will it impact the market? Well, the Bitcoin and cryptocurrency market is still young, and we expect the system to last for a very long time before any such thing can be anticipated.

Whether there are whales in the market is not a question. Also, whether their actions have any impact on the market has also been established. What traders like to know is the heartbeat of these major stakeholders in the industry. This could serve as a fundamental factor in determining what to expect from the markets. Real time prices and market capitalization with respect to volume are areas where we can determine which way the whales are moving.
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Emulating the trading strategies of prominent crypto whales involves understanding some of their key practices. These influential traders often possess significant resources, enabling them to execute substantial trades. To gain insights from their approach, consider the following principles:

1. Informed Decision-making: Stay well-informed about the cryptocurrency ecosystem by keeping up with reputable news sources and reliable platforms. Understanding market trends, new projects, and potential events can contribute to better decision-making.
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2. Analytical Approach: Utilize a blend of technical and fundamental analysis. Technical analysis involves studying historical price data and chart patterns, while fundamental analysis focuses on evaluating the intrinsic value and growth potential of a cryptocurrency.
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3. Risk Management: Prioritize risk management to safeguard your capital. While crypto whales can tolerate losses, individual traders should be cautious. Implement risk management techniques like setting stop-loss orders and diversifying your portfolio.
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4. Adaptability: Remain adaptable to changing market conditions. What works in a bullish market might not be effective during a bearish phase. Being open to adjusting your strategies can be beneficial.
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5. Patience and Discipline: Practice patience and discipline in your trading approach. Crypto whales often wait for favorable opportunities, and exercising restraint can prevent impulsive decisions.
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6. Network and Insights: While crypto whales might have access to insider information, you can still benefit from networking within the crypto community. Engage with knowledgeable traders and participate in discussions to gain insights.
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7. Learning from Mistakes: Mistakes are inevitable, even for crypto whales. Use your experiences as learning opportunities, and continuously improve your trading strategies.

Remember, while understanding the strategies of crypto whales can offer valuable insights, individual trading outcomes vary. The crypto market carries inherent risks, and any trading decisions should be based on careful consideration and personal risk tolerance.

Much like traditional stock portfolios, crypto portfolios can too be balanced to ensure a spread of returns and risks over the asset class. Building a diversified cryptocurrency portfolio can be done in many ways, however, in this article, we will be exploring a general approach that investors can use to build their own. 

From thoughtful diversification to asset allocation to buying your cryptocurrencies, the road to building a balanced crypto portfolio is not a complicated one. It will require some upkeep though, so be sure to factor in that you will need to balance your portfolio regularly. 

Starting with the basics, a cryptocurrency portfolio is a collection of varied crypto holdings held by an individual (these portfolios hold one asset class, while others can hold multiple asset classes and would require further asset allocation).

Some investors also choose to use a third party tracker which calculates the portfolio’s holdings and profits. A balanced portfolio will have a collection of coins, products and tokens, each with its own risks and rewards.

It should have a mixture of high and low market cap coins and might look something like this: 35% Bitcoin, 10% Ethereum, 25% stablecoins, 15% NFTs, and 15% altcoins (this is an example based on the current climate of the cryptocurrency market and not financial advice).

The 5 main types of cryptocurrencies on the crypto market

Before we start building our portfolios, let’s begin with understanding the 5 main categories that can be found on the cryptocurrency market today.

Most of the 20,000 cryptocurrencies on the market at the moment will fall into these options.

Payment Focused

Consider these the original first-generation cryptocurrencies, starting of course with Bitcoin. Many earlier projects were designed as systems of transferring value, take for example Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH). 

These types of coins typically have a high market cap.

Stablecoins

This category refers to all coins that are pegged to a fiat currency and commodity. These coins naturally bypass any volatility, ensuring a stable anchor in your portfolio and a safe haven for when the markets experience a dip.

While they might seem to represent more traditional assets, stablecoins provide a valuable contribution to the crypto ecosystem.

Examples include PAX Gold (PAXG) which is pegged to the price of gold, while options like Tether (USDT) and USD Coin (USDC) are pegged to the US dollar. 

Utility Tokens

Utility tokens are unique to their ecosystems and generally offer a product or service. This could come in the form of a coin used to pay transaction fees on a network, or a coin created to launch a crowdfunding initiative.

Examples include coins found on dapp and smart contract development platforms, Ethereum (ETH) and Binance Coin (BNB). 

Security Tokens 

Much like the traditional securities in the stock market, security tokens can take on many forms.

These digital forms of traditional securities have been integrated with blockchain technology and span across three categories: equities, debt and a hybrid of debt and equity. This can range from representing a bond issued by a project, equity in a company, or even voting rights. 

Governance Tokens

Governance tokens offer holders voting powers and a share of the project’s revenue. Similar to utility tokens, the value of a governance token directly relates to the success of the underlying project. Examples include Uniswap (UNI) and PancakeSwap (CAKE).

How to build a balanced crypto portfolio

When it comes to building a well balanced crypto portfolio there are plenty of different schools of thought.

These are our top recommendations, however, we encourage you to do your own research and ultimately go with what feels right. 

1. Diversify Risk

Ensure your crypto portfolio has an adequate amount of risk tolerance by incorporating high, medium and low-risk coin options, portioned appropriately.

It’s important to first establish what level of risk you are willing to take, and plan your portfolio accordingly. 

2. Include Stablecoins

While these aren’t associated with wild gains, stablecoins help to provide your portfolio with liquidity and are key to many DeFi dapps.

They also allow traders to quickly and easily exit a position or lock in gains whether in a bear market or a bull market.

3. Monitor The Market

Ensure that you are checking in to see what is happening in the market regularly and adjusting your well balanced crypto portfolio to best manage this.

Crypto markets can still be very volatile, so ensure that your trading decisions reflect what is happening. 

4. Monitor Your Emotions

This might be one of the biggest overseen aspects of trading but ensure that you have a grip on your emotions as they can play an integral part in your decision making.

Fear and greed are strong contenders when it comes to making logical trading decisions, make sure that these are not influencing any of your trades.

Don't let greed interfere, changing potential big gains to huge losses. Things can go terribly wrong when emotions are behind the wheel of trading decisions.

5. DYOR

We cannot stress it enough - always do your own research when exploring engaging with other cryptocurrencies. Never engage in a project that you cannot fully explain to another trader. Crypto involvement requires a substantial amount of due diligence.

While there is value in taking advice from a strong trader, ensure that you do your own vetting of the project before blindly trusting a stranger, this is your own money after all. 

6. Onlycommit what you’re willing to lose

As a golden rule of thumb when it comes to allocating funds, only allocate what you're willing to lose.

If you’ve made trading decisions that are causing you sleepless nights, consider a different approach, and ensure that should something go wrong that you have the financial means to stay standing. Your overall portfolio should be correctly balanced in order to ensure you can have rest-filled nights.

How to use a portfolio tracker

While typically used for short-term and day traders, trackers can also provide value to long term investors. Trackers provide a reliable way of monitoring the performance of your low, medium and high risk assets.

Crypto trackers also allow investors to measure their results across several blockchains and wallets in real-time, allowing one to directly measure the success or losses of their crypto holdings.

Portfolios typically involve holding multiple coins across various blockchains, so finding a compatible and suitable portfolio tracker makes sense.

First, you’ll need to select a good portfolio tracker that best suits your needs. Below we’ve outlined the top crypto portfolio trackers, although it's best to get a feel for the platform before diving in.

For instance, Pionex is better suited to high volume investors while Delta is better suited to beginners. See our selection below of top options on the market at the moment.

• CoinMarketCap
  One of the most used sources of information in the crypto space, CoinMarketCap also provides tracking functionality. Users can enter their coins, what price they were bought at and monitor their progress.
• Pionex
  Favoured to high volume investors, Pionex provides a more advanced option when it comes to tracking your crypto portfolio.
• CoinGecko
  Most commonly known as being a data aggregator, CoinGecko also allows users to track over 1,000 coins across its mobile and desktop crypto trackers.
• Delta
  Delta not only provides a very user-friendly crypto tracker, it also allows users to track a wide range of assets including fiat currencies, stocks, bonds, futures, and ETFs.

Aside from the look and feel, other factors to consider are safety and security, and whether it supports the wallet and coins in which you've allocated resources.

Building your crypto portfolio manually

When you’re ready to start building your well-balanced crypto portfolio, you will need to find a reliable platform and wallet on which to do so.

Ensure you stick to a regulated exchange and that the security behind the wallet you choose is of high standards. 

Tap mobile app offers a secure and convenient platform through which users can buy, sell, trade and store a wide range of cryptocurrencies. Learn more here on our website available on both desktop and mobile devices.

Next, you will need to decide on which coins you'd like to engage with, ensuring that you strategically distribute your capital with appropriate weightings.

Take cues from our Types of Cryptocurrencies above, deciding on how you wish to allocate the coins in order to build a balanced crypto portfolio.

We encourage you to conduct extensive research in this phase: A golden rule of engaging with cryptocurrency is to comprehend what crypto is before allocating any funds to it, as well as to understand each individual coin.

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You’ve likely heard that cryptocurrencies provide a faster, easier and cheaper way to send money overseas. While this is true, what many people don’t necessarily know is how this is true. In this article we’re going to be fleshing out exactly how Bitcoin and altcoin transactions work, and how you can easily tap into this modern day phenomenon. 

What is Bitcoin, and what are Altcoins?

If you’re new around here, let’s get you up to speed. Bitcoin was first introduced to the world through a whitepaper in 2008 by an anonymous entity by the name of Satoshi Nakamoto (to this day their identity remains a mystery). Following the global financial crisis, Nakamoto wanted to create a currency that was free from banks and governments, instead putting financial power back into the hands of the people.

Using blockchain technology, Bitcoin was able to facilitate the peer to peer transfer of value, allowing users to make global payments at a much faster and cheaper rate than ever before. While it took a few years for Bitcoin to enter the mainstream market, during this time a number of alternative cryptocurrencies were created. In the early days, any alternative cryptocurrency was referred to as an altcoin (alternative coin to Bitcoin), while this notion has stuck, the altcoin market has grown into a sizable 9,000+ strong industry.

While many altcoins, like Ethereum and Litecoin, were created using Bitcoin’s blockchain, not all offer the same exact functionality. Each cryptocurrency that comes into existence is designed to solve a “problem” in the market, whether that be linked to data storage, smart contract functionality, faster payments systems, etc. 

How do Bitcoin and Altcoin transactions work?

Now that we understand the just of what they are, let’s explore how they work. We’ll use Bitcoin as the prime example. So while bank accounts require lengthy paperwork and administrative tasks, creating a Bitcoin “account” simply requires one to open a wallet. These can be found in different formats, with several options available on the market catered to the user's unique needs. Once you’ve created a wallet, you’ll need to load it with Bitcoin which can be done through an exchange like Tap. 

Once you have funds in your account, you will be able to send them to another user on the network (note that Bitcoin can only be sent on the Bitcoin network and Ethereum can only be sent on the Ethereum network). To send funds you will indicate on the app (or through the wallet) how much you’d like to send, enter the recipient’s wallet address and then pay a small network fee for executing the trade. 

On the backend your transaction will enter what is known as a mempool, a pool of pending transactions, until it is picked up by a miner. Bitcoin miners are responsible for verifying all transactions on the network, and compete with each other to solve the complex cryptographic puzzle first. The first one to do so is responsible for confirming the next batch of transactions in the mempool and adding them to a block. This block is then added to the blockchain in chronological order to ensure the immutable, transparent qualities of blockchain technology are upheld. Once the block has been added to the blockchain, the miner will receive all the network fees of each transaction verified as well as the block reward to compensate for the time and electricity it took to mine. 

The funds will then leave your wallet and enter the recipient's wallet, and will usually be required to go through 3 confirmations before being able to access the funds. Confirmations are measured by new blocks being added to the blockchain following the block in which the transaction is stored. Three confirmations means that three new blocks need to be added to the blockchain before the funds can be used.

Most altcoins work in a similar fashion, however many use different methods of mining (also known as hashing algorithms) but the concept remains much the same. Miners verify the transactions, add them to a block, the block is added to the blockchain and the transaction is executed.

Ready to Tap into blockchain transactions?

Now that you have a better understanding of how Bitcoin and altcoin transactions work, it’s about time you tapped into the seamless world of cryptocurrency transactions provided by Tap. Through the app you can buy, sell, store and spend your cryptocurrency and fiat portfolios. The app has integrated technology which ensures that users get the best market prices in real time, whenever executing a buy or sell order. Users can also store their cryptocurrencies on the platform through the bespoke backend technology which ensures the utmost security at all times.

Bitcoin wallets are responsible for not only storing the digital asset but also providing access to the funds and allowing traders to conduct transactions. Whether you're buying Bitcoin for the first time or have been investing in the blockchain-based currency for years, understanding how a Bitcoin wallet works will assist you in developing and improving your trading experience. 

In this guide, we're going to assist you in understanding what a Bitcoin wallet is, how they work, and where you can find the best one in the United Kingdom. Because where you store your money has become part of the Tap services that we offer.

What is a Bitcoin Wallet?

A Bitcoin wallet not only stores your digital asset but also facilitates the sending and receiving of BTC. While traditional wallets simply provide a means to store your money, crypto wallets are a more complex product providing more functionality to the user. The digital wallet connects to the blockchain and enables you to conduct transactions, keeps track of your balance, and acts as a "decentralized bank account". 

There are different types of Bitcoin wallets with some being referred to as hot wallets while others are cold wallets. Hot wallets are simply cryptocurrency wallets that are connected to the internet, while cold wallets are only connected briefly when conducting trades. Wallets connected to the internet are more vulnerable to hacking, hence cold wallets being a more viable option when storing cryptocurrencies long term. 

Cold wallets can come in the form of physical hardware, like a USB device, or merely a piece of paper (known as a paper wallet). Most wallets come free however hardware wallets you will need to purchase. 

How does a Bitcoin wallet work?

As we mentioned earlier, Bitcoin wallets connect to the blockchain of the network. Each wallet is represented by a 26 character alpha-numeric code, known as your public key, which acts as your wallet address allowing anyone to send you Bitcoin and identify you on the blockchain. 

Each wallet also comes with a private key, which is essentially the "pin code" to your wallet. This code gives you access to your wallet, allowing you to access and send crypto, and should not be shared with anyone. If someone were to gain access to your private keys, they would have control over your funds. 

The Bitcoin blockchain uses the public keys to track Bitcoin transactions, with each wallet representing a BTC balance, and the network receiving updated copies of this. So while Bitcoin wallets don't actually "store" the digital currency, they hold a record of the current balance and previous transactions. As BTC is sent and received, the blockchain records and updates the ownership of each cryptocurrency as well as the wallets' balances.

What types of Bitcoin wallets UK are available?

There are several options available for Bitcoin wallets in the UK which we'll take a look at below. Crypto wallets fall into two categories - hot wallets and cold wallets - and will differ for each cryptocurrency. I.e. you cannot store Bitcoin in an Ethereum wallet, as each connects to a different blockchain. Bitcoin must be stored in a Bitcoin wallet and Ethereum in an Ethereum wallet. 

Hot Wallets

Hot wallets are constantly connected to the internet and provide fast access to your Bitcoin portfolio. There are three main types of hot wallets:

• - Desktop wallet, applications on a desktop
• - Mobile wallet, applications on a mobile device
• - Web wallet, applications accessed through a web browser

While these wallets are known to be more vulnerable to hacking, they are the best options for someone looking to day trade. 

Cold Wallets

These types of wallets are considered to be more secure as they are not constantly connected to the internet. There are two main types:

• - Hardware wallet, an external device that uses USB or Bluetooth
• - Paper wallet, where public and private keys are printed onto a piece of paper

When looking to make transactions, you will need to connect the cold wallet to a hot wallet. For instance, hardware wallets will come with hot wallet applications for desktop or mobile that, once connected, can facilitate transactions. Paper wallets also require a hot wallet to conduct the transactions. 

An example of a hardware wallet is a Ledger Nano S, which allows you to open an account and provides both app and device to assist you in securely storing your crypto. Cold wallets are best suited for long term hodling. 

Finding the best Bitcoin wallet UK

Finding the best Bitcoin wallet in the UK needn't be a tiresome task as we have you covered with the Tap app. While the app is conveniently downloaded to mobile devices, traders can carry their cryptocurrency anywhere, with much greater security than other cryptocurrency apps on phones. 

While we've redesigned the tech behind traditional mobile wallets, we've also made things easier by allowing you to use a password of your choice. With an easy to navigate interface, and all your balances stored on one page, the Tap app is every trader's dream.

Our Tap wallet allows you to store both crypto and fiat currencies and uses a hybrid of both hot and cold wallet technology to ensure that they are always highly secure, and always available. 

Security and convenience are key

If you're searching for a reliable Bitcoin wallet option in the UK, you'll discover it conveniently with the Tap app. Simply download the Tap app, set up an account, complete the KYC verification, and you'll have the opportunity to securely manage your cryptocurrencies with top-notch security features that are available on the market.

You've likely heard a Bitcoin maximalist tell you that crypto is the future and will eventually replace fiat currencies. While that's unlikely to happen overnight or any time soon, we're exploring the question looking at many factors that will contribute to this tech-forward proposition. 

While investor interest has certainly infiltrated mainstream culture, cryptocurrencies need to overcome several obstacles before they become a viable replacement. The obstacles include practical application, a willingness from merchants to embrace digital currencies, the market's volatility, and usability. Bearing that in mind, there have still been a number of shifts indicating that crypto adoption is certainly on the cards.

El Salvador Legalises Bitcoin

In June 2021, the president of the small Central American country, Nayib Bukele, announced that Bitcoin would officially be accepted as legal tender. The president also announced plans to create a Bitcoin City with the intention of becoming "the financial centre of the world.". 

Rolling out a number of services to support this concept, including a national wallet named Chivo, the endeavour cost a large amount of taxpayers' money, and not all were happy about this. 

On the other hand, Bukele was praised for being a revolutionary in the tech field, and a pioneer in the movement to shift from fiat to crypto. It's worth noting that there were mixed reactions on both sides of the crypto fence, some favouring the movement while others expressed concern over it being too premature. 

New York Mayor Accepts Salary In Crypto

In a move to make New York City the crypto capital of the world, the current mayor, Eric Adams, has stuck to his word and accepted his salary in crypto. As part of his campaign, the politician promised to accept his first three paychecks in cryptocurrency and received his first instalment in a combination of Bitcoin and Ethereum in January. 

Adams has also been vocal about his support for the NYC Coin, a digital currency that would take on similar functions as the Miami Coin released in 2021. Adams confirmed in a statement:

"New York is the centre of the world, and we want it to be the centre of cryptocurrency and other financial innovations. Being on the forefront of such innovation will help us create jobs, improve our economy, and continue to be a magnet for talent from all over the globe."

Rise In CBDCs

Venezuela is another country to adopt a pro-crypto attitude albeit born from less savoury conditions. Following a bout of hyperinflation, many turned to cryptocurrency as an alternative store of value, and as an income source as mining in the area with such low electricity prices was very lucrative. 

This eventually led to the country creating its own digital currency, the Petro, released in 2018. Cryptocurrencies released by the government in this nature are referred to as central bank digital currencies, CBDCs. 

The Bahamas and Nigeria also recently released their pilot central bank digital currencies to test the functionality and national responsiveness of the people. The "Sand Dollar" in The Bahamas is believed to be born from a combination of centralized banks being destroyed by hurricanes and accessibility to money across the various islands. 

Nigeria confirmed that the move was in line with needing a more digital approach to finances as the country has a considerably young population (in 2020, 43% of the population was aged 0 - 14 years).

A number of other countries have also announced plans to "explore" CBDcs, with China also currently rolling out a pilot program in several cities across the country. Decentralized digital currencies play an advantageous role over fiat currencies in countries affected by corruption and with largely remote areas. 

The Future Of Crypto

The future looks bright for the integration of cryptocurrencies into our traditional financial space. While it's unlikely that crypto will entirely replace fiat currencies (anytime soon or ever) it is likely that they can work alongside each other. With the rise in CBDCs around the world and the increase in mainstream crypto integration, the world has certainly taken notice of the vast benefits of using cryptocurrencies and the innovation in the space. 

Tap remains ahead of the curve with its mobile app allowing users to pay for everything using cryptocurrencies from their portfolios. Simply select which cryptocurrency you would like to use and Tap will liquidate it for the local currency of the relevant account and send the required amount of fiat funds without any hassle for you. Simple and efficient, Tap is paving the way for the future. 

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Since the Covid-19 pandemic, cryptocurrency adoption has increased significantly. Growing in both value and popularity, the cryptocurrency market has become submerged in the traditional financial system. In light of the recent crypto market crash, many in the broader economy have been asking whether this will have any effect on the larger global financial markets and be a threat to financial stability across all asset classes. Let’s find out. 

The Crypto Market Crash of 2022

After weeks of mediocre market performance, an unsuspecting crash caused the markets to further weaken at a rapid pace. The Terra network, operating both LUNA and UST (the stablecoin, TerraUSD) lost millions of dollars in a matter of days causing both institutional and retail investors to take notice.

The LUNA network lost a significant amount of value which resulted in the market cap going under that of UST. The LUNA coin was designed to hold the reserves which peg UST to the US dollar, so once these reserves dipped below that of the market cap of UST it became clear that the network did not hold enough reserves to support the stablecoin. Both cryptocurrencies then experienced nose dives in their value, LUNA going from highs of $119 to lows of $0.0003. 

This and the recent Celsius drama had a knock-on effect on the rest of the market, causing most crypto assets to make double-digit losses, including the Bitcoin market. In a matter of weeks the entire crypto market went from being valued at $1.294 trillion to $968 Billions. Sizable losses but a vast contrast from the highs of nearly $3 trillion just seven months ago. 

Crypto Vs Traditional Markets

While the cryptocurrency market is still relatively young, it has made considerable gains over the last few years. When compared to more traditional markets, though, it might be likened to a drop in the ocean. For example, the U.S. equity market is worth $49 trillion while the derivatives market is believed to be valued at over $1 quadrillion and the bond market at $119 trillion. 

A $3 trillion market value, while impressive for an asset class just over a decade old, doesn’t hold too much weight in comparison.

Does The Crypto Crash Pose A Threat To Greater Financial Stability?

Considering these values, the cryptocurrency market makes up only a very small percentage of the world’s wealth. However, the international Financial Stability Board, the U.S. Treasury Department, and the Federal Reserve recently flagged stablecoins as a potential threat to the financial stability internationally. 

Stablecoins are digital currencies pegged to a fiat currency, where the operating company is required to hold the equivalent amount of the fiat currency in reserve in order to maintain its 1:1 value. This is the case for both USD Coin (USDC) and Tether (USDT). 

This concern is likely to be heightened following the market crash of UST, however, most of the other stablecoins are fiat-backed as opposed to being backed by an algorithm. 

In short, no, a crypto crash is unlikely to affect the broader financial market but rather individual and institutional investors. As witnessed in the past, markets fluctuate and all crypto winters have been succeeded by bull runs. 

Any crypto trader or investor will know the rigorous, albeit essential, process of completing KYC practices before being able to buy or sell Bitcoin and other cryptocurrencies. In this article, we're debunking the myths and highlighting the reality of why these Know Your Customer processes are necessary, and how it fits in with AML (anti-money laundering) laws.

As cryptocurrency exchanges continue to solidify their position in the greater financial landscape, the need for strict and regulatory practices has increased. Due to the nature of cryptocurrency transactions being pseudonymous, the need to weed out illicit activities is imperative. 

With little regulation in place, the market remains vulnerable to all kinds of criminal activity, from terrorist financing to ransomware attacks. While regulators were scrambling to change this, a whole new industry within the crypto space evolved. From the even more decentralised nature of DeFi to entirely unregulated NFT dealings, both financial regulatory bodies and institutional investors have joined forces to create more structured frameworks to fight blockchain crime. The results have proven to be successful.

With fast-changing landscapes and increasing innovation, regulating the crypto markets comes with a need to match the pace. Considering that the current financial regulatory frameworks were created based on fundamentally different economic principles, regulatory bodies have their hands full when it comes to building and implementing regulations that can support, while not extinguishing, this financial services revolution. Not to mention the laws required from an insurance standpoint.

What Is AML In Crypto?

Anti-money laundering encompasses a range of regulations, procedures and laws to stop criminals from disguising illegally obtained funds as legitimate income. These measures were not implemented into big exchanges in the early stages of the crypto timeline, but are rather now making their way into platforms' due diligence processes as per tighter regulations. These generally involve traders confirming their identity before being able to conduct any payments when buying digital assets or executing any crypto transactions. 

As noted in the banking and crypto industries, when individuals or businesses attempt to conceal unlawful earnings this is typically done in three stages: placement, layering, and integration. The placement layer involves the money being deposited on the crypto exchange. 

The layering stage is when the illegitimate funds are mixed with legal funds making it challenging for authorities to keep tabs on them. In the final stage, the laundered money is "cleaned" and returned to the beneficiary. This is how criminals circulate illicit income and manage to launder money undetected.

In the decentralised world of cryptocurrencies keeping tabs on such activities has its own set of challenges. Hence why AML measures and controls are vital to the industry's operations as well as reputation. 

However, as mentioned above, these measures need to be carefully implemented so as not to kill the nature of why people are attracted to cryptocurrencies in the first place (being free from third parties or central authorities). The regulations need to respect the decentralised nature of cryptocurrencies while still providing the opportunity for policing should illicit activities be happening, and then needs to be built into the business model of the company providing the crypto services.

The Crypto AML Red Flags

While there are plenty of anonymous means of transacting your crypto, such as privacy-focused cryptocurrencies, there are still several aspects that traditional cryptocurrencies possess that trigger red flags when it comes to AML.

The estimated amount of money laundered in 2021 is $800 billion - $2 trillion, with roughly 50% of money laundering going undetected. According to a Basel System Report, 62% of compliance officers in business crime say that this type of criminal activity is becoming more difficult to spot. With this in mind, here are the top AML red flags that are present across the board: 

Obscured identity of transaction makers

Unclear transaction size 

Obscured geographic location

Unofficial profiles of parties involved

Lack of information on the source of funds

Withdrawing funds from a wallet with no transaction history

Consecutive high-value transactions

How AML Protocols Are Implemented At Crypto Exchanges

As crypto exchanges work toward integrating cryptocurrencies into the mainstream financial landscape, they are required to work hand in hand with regulatory bodies. These actions vary around the world, with many countries opting to embrace different methods of imposing AML practices. 

Here is a look at how 5 countries imposed varying rules:

The U.S.

Governed by the Financial Transactions and Reports Analysis Centre (FINTRAC) and Financial Crimes Enforcement Network (FinCEN) the country has strict regulations when it comes to AML and KYC regulations. It continues to work on the legal framework.

South Korea

Following an investigation with crypto exchange Bithumb revealing that $1.45 billion worth of funds were illegally moved through the platform, the country is working on imposing more defined AML and KYC rules.

Singapore

Taking a rare approach to crypto regulation, the financial hub of Asia and a key player in the development of the blockchain and crypto industries, Singapore is choosing to educate people on the technology rather than impose stringent policies. 

Canada

The country recently imposed regulations under the guidance of the FINTRAC unit that mandates the same KYC requirements as traditional financial institutions.

Thailand

The Thai regulatory bodies have implemented regulations to keep foreign investors out of their local markets by upgrading their KYC regulations with in-person verification and microchips in their ID cards. 

Today, most modern nations have implemented rules that demand businesses to use sophisticated technologies to prevent crypto from being utilised to finance unlawful activities and protect their investors.

Cryptocurrency compliance is an industry that has its own set of rules. Every year, businesses must demonstrate greater levels of security and minimise risks in order to stay compliant. KYC/KYB/AML processes are taken very seriously by reputable cryptocurrency firms. They might be subject to huge penalties if they fail to comply with this requirement.

In Conclusion:  AML Is Here To Stay

While these new financial transparency measures might go against the very nature of cryptocurrencies, it is important to ensure the security of crypto users, and for the overall adoption of the industry. They also play an imperative role if crypto wants to live alongside fiat currencies in the global financial landscape.

The introduction of new global regulations contributes to the growth of the cryptocurrency industry. Despite a widespread misconception, digital currencies are traceable and do not account for most financial crimes.

Reputable cryptocurrency platforms collaborate with law enforcement to assist in the prevention of illegal activities. They also safeguard their users from fraud and other potential risks.

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After weeks of trading sideways, Bitcoin and Ethereum are showing renewed strength and a surge in upward momentum, taking the market in a perfect storm yet again.

Bitcoin has experienced a significant price reversal over the past several weeks, rising from below $30,000 to over $46,000 in value on august the 11th.

BTC gained almost 19% in the past week making it its strongest monthly performance since March closely followed by 18.5% in July. Meanwhile, Ethereum (ETH) is trading around $3,100, having posted a gain of 11.5%last month, its largest increase in three months. As Ethereum's rally accelerates and bitcoin's advances have slowed, some on the institutional side speculate it could overtake Bitcoin as the world's largest cryptocurrency by value.

Clearly, the crypto bulls do not go on holiday.

The world's total cryptocurrency market capitalization peaked at over $2 trillion Wednesday afternoon for the first time in about three months.

Over the last year, there has been an increase in investment appetite for cryptocurrencies due to crypto trading volume growth, fintech company crypto offerings allowing you to acquire crypto with a click from your phone.

AJ Bell's research suggests that more adults in the United Kingdom invested in crypto than stocks in the last year: 7% of the population versus 5%for stocks. Data show that 71% of these investors said that they made a profit from their investments, while only 12% admitted losing money.

Retail clients aren't the only ones interested in the recent cryptocurrency mania. Institutions and hedge funds managers are also entering the game. It seems that the world's gone crypto crazy.

More institutions are also introducing cryptocurrency products for high-net-worth clients, including JP Morgan and Wells Fargo. A recent report by the AIMA in partnership with PWC report that 47% of traditional hedge fund managers surveyed representing $180billion in assets under management (AuM) are already investing or looking into investments in crypto. Benefit-wise, the median crypto hedge fund returned 128%in 2020 despite the COVID-19 pandemic which generated the economic downturn.

As a result of the lack of laws and regulations in place, some major financial institutions are reluctant to involve themselves. Some other traditional asset managers often shy away from cryptocurrency investing due to its volatile nature, lack of appropriate infrastructure, as well as the recentness of the industry. However, Increasing regulation and interest in the digital currency industry could force traditional institutions to hop in, either through buying a stake in cryptocurrencies or launching their own cryptocurrency-tracking funds.

The alternative assets class of cryptocurrencies is becoming a driving force in the market. The price discovery for these digital currencies is different from traditional investments because it cannot be correlated with traditional sources of values, such as stocks or bonds. In spite of this distinction, crypto may provide diversification opportunities and an additional source for portfolio returns that are otherwise unavailable as yields decrease and the stock exchange might be unpredictable given the current economical downturns.

Though excitement is high for rally markets, anyone who wants to put their money in cryptocurrencies needs to be knowledgeable about the result of trading as cryptocurrencies are notoriously volatile and that education and experience are the key

Anyone that has been watching the markets closely for the last several months will have noticed a definite chill in the air (not to mention a decline in their money). As the bears become more prominent, weak hands are losing faith and exiting the market. Why are we talking about a cryptocurrency winter now? Before we firmly declare this to be a crypto winter, let's explore the recent dips of the digital asset market and what previous crypto winters have detailed. 

What is a cryptocurrency winter?

A cryptocurrency winter is a term used in the crypto market to describe a long term bear market. A bear market is classified as a declining market where shares have fallen below 20%. Investors typically call it a crypto winter when the markets have struggled to reclaim highs previously witnessed (usually right before the winter set in). Does that mean cryptocurrency investors should take out their snow shoes? Metaphorically, yes. And by snow shoes we mean thick skin and strong hands.

The recent market climate (five month period).

Since reaching its most recent all-time high, Bitcoin has dropped over 40%. After reaching highs of $68,789.63 in November 2021, Bitcoin has gone through a red-tainted slump reaching lows of $33,710 in late January and since recovering to just under the $40,000 mark. 

Ethereum, the second-biggest cryptocurrency, has experienced a similar fate, dropping from highs of $4,891 in November 2021 to lows of $2,211 in late January. Ethereum has since corrected to the $2,800 region as it generates interest in its move to a Proof-of-Stake consensus. 

It's no secret that the stock markets have suffered a similar fate in recent months, with seemingly only gold remaining unscathed. Experts have suggested in various articles that the uncertainty in global politics is playing a considerable role in the decline of various markets and businesses.

Buterin confirms a crypto winter

As touched on above, the current ongoing war between Russia & Ukraine has played a large role in driving investors' uncertainty as prices bounce through the highly volatile period. While we've seen an increase in trading volume, there have also been strong price swings.

This paired with the declining prices has led to a downfall in companies and traders entering the market, further fuelling the problem. This has become known in the industry as a crypto winter. 

Ethereum founder, Vitalik Buterin, recently confirmed the case, although he also highlighted the positives, particularly for those on the development side. He pointed out that crypto winters offer a period of rejuvenation for the industry, allowing unsustainable projects to fall away. 

"They welcome the bear market because when there are these long periods of prices moving up by huge amounts as it does - it does obviously make a lot of people happy - but it does also tend to invite a lot of very short-term speculative attention."

He added that it encompasses a "time when a lot of those applications fall away and you can see which projects are actually long-term sustainable, like both in their models and in their teams and their people." If one factors the development side of things in, we can bank on the industry coming out stronger after this period.

Unwrapping the previous crypto winter

The last crypto winter we experienced took place in 2018 after the highs of December 2017 (when Bitcoin almost reached $20,000). This bear market continued until mid-2019 before it started showing signs of recovery. It wasn't until Bitcoin defied the odds in 2020 and overcame the pandemic that it soared to higher heights, almost triple that of the previous all-time high. 

While losing 40% of its value this season sounds rough, the previous crypto winter saw losses of 84%. As cryptocurrencies further emerge themselves into the mainstream financial markets, many believe it is only a matter of time before the prices enter the green again. Time also tends to play a regulator role when it comes to changing crypto seasons. 

Bitcoin's four year cycle theory

There is a growing belief in the industry that Bitcoin has a definitive four-year cycle of prices rising and falling. This aligns with the halving mechanism which takes effect every 210,000 blocks, or roughly every four years. 

The halving, the last of which took place in May 2020, halves the rewards given to miners for verifying transactions and effectively halves the number of new coins entering circulation. History has shown that a bull run succeeds these events, roughly twelve to eighteen months later. 

Surviving the chill

While many can agree that the crypto winter is upon us, there is no saying how long it might last, or how low it may go. Analysts suggest that traders use the time to sharpen their investment strategies and implement plans of action that keep risk to a minimum. As blockchain and cryptocurrencies have already passed a significant milestone in their adoption, there is no stopping it now. For any traders concerned over the crypto winter, fear not. It will pass. 

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Decentralized Finance, or DeFi, opens up a whole world of financial services for you, ranging from straightforward banking services to complex financial instruments similar to those used by hedge funds and investment bankers. But here’s the twist: it all operates with cryptocurrencies instead of traditional cash.

In DeFi, you can stake your cryptocurrency in what are called smart contracts, which essentially means locking up your funds to earn interest, known as Annual Percentage Yield (APY). As a token of appreciation for staking your funds and providing liquidity, DeFi projects grant you special project-specific tokens. These tokens aren’t just a thank-you note—they give you a say in the project’s future decisions and carry some speculative value too.

Before we get started, let us first address several terms you are likely to come across in this piece:

• Financial institutions are your traditional banks
• Centralized exchanges are crypto exchanges that are operated by a managing company
• Decentralized exchanges are crypto exchanges that are not managed by one company and typically work in a peer-to-peer manner.
• DeFi is decentralized finance and refers to the industry in which regular users can engage various financial services requiring only an internet connection.

How smart contracts work in the DeFi space

A smart contract is a digital agreement that automatically executes once the predetermined criteria have been met. These computer codes are facilitated by blockchain technology and rely on the blockchain that they are built on. 

At the moment, your bank account from financial institutions might give you the right to a certain amount of monthly interest at a fixed rate. The deal is reached through a formal application procedure - which can take many days - that is handled by a mix of people and software and is acknowledged in writing. Once successful, the bank account is opened and you have access to the services.

A smart contract, on the other hand, uses a programming language (e.g. Solidity on Ethereum) to map out the mathematical aspects of an agreement - how much interest is due when and where it should be paid - while the underlying Ethereum blockchain executes the contract for a fee, making it transparent and unchangeable.

The ups and downs of the DeFi ecosystem

owever, it’s not all smooth sailing. DeFi can offer higher returns than traditional banks, which is quite appealing, but it also comes with higher risks. For instance, if something goes wrong with a smart contract, or you lose access to your private keys, there’s no safety net to catch you.

To dip your toes into DeFi waters, you’ll need a digital wallet like MetaMask and some funds from a cryptocurrency exchange. Once you’re set up, you can participate in various DeFi activities like lending or staking, each with its own set of fees depending on the network you’re using.

Additionally to the higher returns, DeFi tokens have also seen a rise in value, with some entering the top 20 and top 10 biggest cryptocurrencies based on market cap.

Furthermore, the value of DeFi tokens has surged, with some climbing into the top ranks of cryptocurrencies by market cap. This growth indicates a strong interest and a robust market presence, which can be exciting for anyone involved in the space.

However, it's not all smooth sailing. DeFi comes with its own risks that you should be aware of. For instance, executing smart contracts can get pricey, especially during times of network congestion. If you're looking to cut down on fees, you might want to explore alternatives to popular platforms like Ethereum, which can be more cost-effective.

Also, not all smart contracts are built the same. Some may have vulnerabilities that could put your funds at risk if not properly managed or if an error in the contract execution occurs. This highlights the importance of being careful with where and how you invest your digital assets.

Moreover, the decentralized nature of these platforms means that you’re in full control—which sounds great until you realize there is no safety net. If you lose access to your private key or make a transaction mistake, there's no customer service line to call for a do-over.

Ensure you vet various DeFi protocols before engaging

In general, more established Defi protocols with a higher total value of assets secured within them (also referred to as Total Value Locked, TVL) are safer. This is due to the fact that their code has been more thoroughly audited and "battle-tested".

Newer platforms will typically offer higher APYs in order to entice investors and build up liquidity. While this may sound lucrative, always ensure that you've done your research in order to understand exactly how the protocol operates and who is behind the project. 

Here are a few things to look out for:

• Has the protocol's code been professionally audited? 
• How long has the project been live?
• What is the platform's TLV? (The higher the better)

Finding your top Defi protocol

There are a number of "well-established" DeFi platforms that have proven reliable and trustworthy in recent years. While the risks are still prevalent, these are the most established options when looking to enter the DeFi space with the leading DeFi protocols.

Aave

Compound

Maker

Yearn Finance

How to use DeFi protocols (Get started in DeFi)

Jumping into the world of DeFi protocols can be quite an adventure. Here’s a simple guide on how to get started :

First, you'll need a digital wallet, and MetaMask is a popular choice. It's user-friendly and a common gateway for engaging with DeFi platforms.

Once you have your digital wallet, you'll need to move your cryptocurrencies into it. This is usually done through a transfer from a centralized exchange. For example, if you have a Tap wallet, you can transfer Ethereum (ETH) or other supported assets directly into your MetaMask wallet. Remember, DeFi protocols operate with cryptocurrencies, not traditional bank funds.

With your wallet set up and your funds in place, you can connect to any DeFi application that interests you. You can then engage with various features of the platform, such as depositing funds into a lending protocol. Keep in mind that actions like depositing, staking, unstaking, or withdrawing will typically involve network fees, which vary by blockchain.

That’s all there is to it! With these steps, you can start exploring the different functionalities and opportunities within DeFi at your own pace.

Understanding the risks associated with DeFi

While we've stressed that using tried and tested DeFi platforms provide a higher level of security, there are still risks associated with the DeFi space.

Below are some more steps you can do in order to secure your cryptocurrency assets and decrease the chance of losing your funds.

• Consider insurance, look into options for insuring your assets to help mitigate potential losses.
• Research the team behind the project, do your due diligence.
• Familiarize yourself with the platform's operations and features. For instance, if a platform advertises a certain return rate, such as 10% APY, delve into how they achieve those figures.
• Don’t commit more than you can afford to lose

Decentralized finance is one of the most innovative and promising areas in cryptocurrency. It is also a harsh environment, however, that demands some expertise before stepping in.

Before you place any funds into Defi protocols and become one of the many liquidity providers, ensure that you've fully vetted the project and considered the pros and cons of what it has to offer. Also ensure that you understand how the platform operates.

The DeFi space can be both lucrative and devastating, it is complex and requires a good amount of know-how. If you wish to get involved, take the time to really understand both the opportunities and the challenges it presents first. This way, you can engage with DeFi more cautiously and equipped with the necessary knowledge. And remember with Defi everything is at your own risk.
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The Lightning Network is a second layer solution that enables Bitcoin users to make fast and cheap transactions without compromising on security. The layer two technology allows users to enjoy the benefits of both the Bitcoin and Lightning Network layers simultaneously. Learn more about the Lightning Network solution below.

The Bitcoin trilemma

In order to compete with other payment channels like Visa, the Bitcoin network must be able to process transactions much faster and at a fraction of the cost. However, this scaling cannot come at the expense of decentralization or security.

The "Bitcoin trilemma" is a term used to outline the conflict between these three principles, scaling, security, and decentralization. 

The aim of Bitcoin Cash, Bitcoin SV, and other forks was to increase the block size in order to make Bitcoin transactions faster and more affordable on-chain.

However, these attempts failed to produce an effective method to transact quickly and inexpensively on-chain while still maintaining Satoshi's design. Hence, the Bitcoin Lightning Network.

The lightning network payment channels solution

Is it possible for the Bitcoin network to have it both ways, to keep its original architecture while also functioning as a fast micropayments network? The answer is yes, and thanks to the advent of Lightning Network transactions, Bitcoin can be used for everyday transactions like paying for a cup of coffee.

The Lightning Network is a type of layer two solution that is compatible with the Bitcoin service. This off-chain solution was first conceptualized in 2015 by Joseph Poon and Thaddeus Dryja.

The Lightning Network works by removing the burden of micropayments from the Bitcoin blockchain and instead utilizes multiple payment channels, which are controlled via multi-signature (multi-sig) Lightning Network wallets.

Why the lightning network?

How quickly can the Bitcoin network process transactions? Bitcoin is presently capable of processing between 2 and 7 transactions per second.

Visa, the current payment channel that drives your debit and credit card transactions, handles 150 million transactions each day, that's 24,000 transactions per second.

In order to make Bitcoin a competitive service to Visa, the Lightning Network needs to be implemented. This channel ensures that micropayments are instantly and cost-effectively executed, and is able to process thousands to hundreds of thousands of transactions instantly. 

The core concepts of how the Lightning Network works.

So how does the Lightning Network work? This layer 2 solution works on top of the Bitcoin blockchain, allowing thousands of micropayments to be executed at one time. This lowers the costs and increases the transaction speed of the initial transaction. There are three core components of the Lightning Network: the nodes, channels, and invoices. 

Lightning Network Nodes

This software connects with other nodes in order to form a network that connects to the Lightning Network to facilitate the sending and receiving of Bitcoin. 

Lightning Network Channel

Users of the Lightning Network establish payment channels with one another so that they may conduct transactions off-chain, which can then be settled (closed) on the mainchain (on-chain).

Invoices

Invoices are QR codes that represent requests for Lightning Network payments on the Lightning Network. Invoices include all of the data necessary to complete a payment on the network, such as the payment amount, which blockchain the invoice is associated with, expiration date, payee pubkey, routing hints, and other information.

How to use the lightning network

In order to make use of the Bitcoin Lightning Network, you will need to open a compatible Lightning Network wallet. Once you have downloaded and signed up for the wallet, you will need to send funds. Simply locate the wallet address of the Lightning Network-enabled wallet and send the funds via your normal payment channel. Once the funds appear in your wallet, you can then send transactions via the Lightning Network to other enabled wallets.