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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.
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.
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.
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.
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.
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.
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.
Understanding what fiat on-ramps and off-ramps are will play a pivotal role for those looking to incorporate cryptocurrencies into their day-to-day lives. These “ramps” ensure a seamless experience integrating the use of both fiat currencies and cryptocurrencies. In this article, we explore the difference between the two and why they play such an important role in cryptocurrencies going mainstream, as well as the greater crypto ecosystem.
What is a fiat on-ramp?
Fiat on-ramps serve as important gateways that make it possible to convert traditional fiat currency (e.g. Euros or US dollars) into cryptocurrencies (e.g. Bitcoin or Ethereum). They act as bridges, connecting the world of fiat money with the exciting world of digital assets.
Through exchanges, brokerage services, and peer-to-peer platforms, these on-ramps provide convenient and accessible ways for individuals to enter the world of crypto. When using a fiat on-ramp, it's crucial to keep a few key considerations in mind. You'll want to ensure the security of your transactions, be aware of any fees involved, and fulfil any necessary verification requirements.
A fiat on-ramp can also be referred to as a fiat gateway or a crypto on-ramp.
The advantages of fiat on-ramps
Fiat on-ramps come with a range of benefits that make them a great choice for those entering the crypto world. One major advantage is the ease that an on-ramp can offer newcomers, providing a simple way to dive into the crypto market without needing extensive technical knowledge.
Additionally, an on-ramp typically opens up a wide array of cryptocurrencies to explore, expanding investment opportunities.
The disadvantages of fiat on-ramps
However, it's essential to be aware of the potential challenges and risks involved. Things like regulatory compliance and the risk of encountering fraudulent platforms or scams can pose concerns. To stay safe, it's important to do thorough research, read user reviews, and choose a reputable fiat on-ramp with strong security measures and regulatory compliance.
What is a fiat off-ramp?
Fiat off-ramps play an equally vital role as on-ramps in the world of cryptocurrencies by providing a way to convert digital assets back into fiat currency. Essentially, they serve as exit points from the crypto market, allowing users to cash out their investments and sell crypto.
Through crypto exchanges, peer-to-peer platforms, and even cryptocurrency debit cards, fiat off-ramps facilitate the seamless conversion of cryptocurrencies into fiat money. However, it's important to consider a few key factors when using an off-ramp.
Factors such as withdrawal limits, fees, which fiat currencies are supported and tax implications can impact the overall experience. Being mindful of these considerations ensures a smooth transition from the crypto world back to fiat currency while optimizing returns.
Fiat off-ramps can also be referred to as fiat gateways or crypto off-ramps and refer to the same off-ramp solution.
The advantages of fiat off-ramps
Fiat off-ramps offer several benefits that make them valuable for cryptocurrency users. One key benefit is the liquidity they offer, providing a way to convert digital assets into fiat currency whenever needed. This accessibility provided by a fiat off-ramp allows users to access their digital currency funds easily and use them in the real world.
Another advantage of an off-ramp is the ability to realize profits from cryptocurrency investments quickly, turning virtual gains into tangible returns. However, it's important to be aware of potential challenges and risks.
The disadvantages of fiat off-ramps
Several considerations to take when looking at using an off-ramp center around transaction fees and regulatory concerns. Note that transaction fees can eat into profits, and regulatory considerations may affect the ease of converting cryptocurrencies into fiat currency. To navigate these challenges, it's wise to choose a reliable fiat off-ramp by conducting thorough research, reading user reviews, and ensuring they comply with regulations. By doing so, individuals can make the most of fiat off-ramps while effectively managing associated risks.
The connection between fiat on-ramps and off-ramps
Fiat on-ramps and off-ramps are tightly interconnected within the cryptocurrency ecosystem, forming a crucial link in the cycle of converting between fiat currencies and digital currencies. The availability and efficiency of an on-ramp and off-ramp significantly influence the overall liquidity and adoption of cryptocurrencies.
Seamless on-ramps enable easy entry into the crypto market, attracting more users and boosting liquidity. Likewise, efficient off-ramps allow investors to convert their digital assets back to fiat money, providing the necessary flexibility and enhancing the adoption of cryptocurrencies in everyday transactions.
Reputable platforms like Tap exemplify this connection, offering both on-ramp and off-ramp functionalities to facilitate smooth conversions and foster a thriving crypto ecosystem. With a wide range of supported cryptocurrencies and fiat currencies, the platform caters to users around the world looking for a seamless ramp solution.
In conclusion
We've explored what a fiat on-ramp and off-ramp are, and the crucial role that they play in the world of crypto assets. We discussed the key points, including how an on-ramp facilitates easy entry into the crypto market and an off-ramp allows crypto users to convert digital assets back into fiat currency.
It's essential for cryptocurrency users and investors to understand these concepts as they provide liquidity, investment opportunities, and the ability to realize profits (in fiat currency). Looking ahead, the future of fiat on-ramps and off-ramps appears promising. As the cryptocurrency landscape continues to evolve, we can anticipate exciting advancements in these gateways, making crypto assets more accessible and further driving their adoption into mainstream use.
Le trading d’arbitrage est une méthode alternative utilisée par les investisseurs pour acheter un actif sur un marché et le revendre simultanément sur un autre à un prix plus élevé. Ce style de trading peut s’appliquer à de nombreux types d’actifs : actions, matières premières, devises, et bien sûr, cryptomonnaies. Bien que potentiellement rentable, il reste complexe et comporte son lot de risques.
Dans cet article, on vous explique en quoi consiste l’arbitrage, comment il fonctionne, et quels sont les risques à connaître avant de vous lancer.
L’arbitrage, c’est quoi exactement ?
L’arbitrage consiste à exploiter des écarts de prix sur un même actif entre plusieurs marchés. Concrètement, un trader achète un actif sur une plateforme à un prix donné et le revend aussitôt sur une autre où le prix est plus élevé. Ces différences de prix naissent souvent d’inefficiences temporaires du marché.
Ce type de trader est appelé un « arbitragiste » et se spécialise généralement dans une catégorie d’actifs précise. Par exemple, un arbitragiste peut acheter une action sur la Bourse de Londres et la revendre sur celle de New York pour réaliser un bénéfice.
Mais attention : si cela peut sembler simple sur le papier, l’arbitrage demande une connaissance approfondie des marchés, une capacité à repérer rapidement les opportunités, et une bonne lecture de l’actualité économique.
Les risques liés au trading d’arbitrage
Le trading d’arbitrage n’est pas aussi facile qu’il n’y paraît. Voici quelques-uns des principaux risques à garder en tête :
Erreurs sur les écarts de prix
Puisque tout repose sur des différences de prix souvent très brèves, le risque principal est que ces écarts disparaissent avant que la transaction ne soit finalisée. Un décalage de quelques secondes peut suffire à annuler le potentiel de gain — voire entraîner une perte.
Frais et taux de change
Les frais de courtage, les coûts de transaction ou encore les variations de taux de change peuvent facilement grignoter une partie, voire la totalité, de vos profits. Ces éléments doivent toujours être intégrés dans vos calculs.
Timing
Tout se joue sur le bon timing. Repérer l’opportunité ne suffit pas, il faut aussi pouvoir exécuter les transactions simultanément sur plusieurs marchés, ce qui demande des outils performants et souvent automatisés.
Comment débuter dans le trading d’arbitrage ?
Pour vous lancer, il est essentiel d’analyser les marchés internationaux et de suivre de près les mouvements de prix. L’objectif est de repérer des actifs disponibles sur plusieurs plateformes ou marchés, et de détecter un écart de prix suffisant pour justifier une opération d’arbitrage.
Il est également conseillé de s’équiper d’outils de suivi des cours en temps réel et, si possible, d’automatiser les transactions pour maximiser vos chances de réussite.
Exemple d’un arbitrage
Prenons un exemple simple : une action d’une entreprise automobile est cotée à 100 $ sur la Bourse de Londres, et à l’équivalent de 75 $ sur celle de Tokyo. Un trader d’arbitrage achètera alors l’action sur le marché le moins cher et la revendra immédiatement sur le marché le plus cher.
Théoriquement, cela lui rapporterait 25 $ par action. Mais en pratique, il faudra aussi prendre en compte les frais de transaction, les frais de change et les différences de devises. Plus le volume d’achat est important, plus les gains potentiels sont élevés — mais le risque aussi.
Est-ce que le trading d’arbitrage est fait pour moi ?
L’arbitrage peut sembler attractif, mais il demande beaucoup de préparation, de rigueur et de réactivité. Ce n’est pas une stratégie passive. Si vous êtes prêt à vous former, à surveiller les marchés et à calculer rapidement, alors cela pourrait être une voie à explorer.
In this article, we delve into the distinction between revenue and profit, essential for businesses aiming to thrive financially. In a nutshell, revenue represents the total income generated from core operations, while profit is what remains after deducting all expenses. Join us as we explore the nuances between these two crucial concepts and their significance in business success.
What is revenue?
Revenue represents the total income earned by a business through its core operations, such as sales of goods or services. It can also be referred to as the top line of an income statement. It's essential for covering expenses, investing in growth, and generating profits.
Revenue comes from various sources like product sales, service fees, subscriptions, licensing, and advertising. Understanding and managing revenue streams are crucial for sustaining operations, attracting investors, and ensuring long-term viability in competitive markets. Thus, revenue serves as a vital performance indicator for businesses of all sizes and industries.
What is profit?
Profit refers to the financial gain a business achieves after deducting all expenses from its total revenue. On an income statement, profit is typically known as net income, however, the term "bottom line" is more commonly used. Profits appear on an organisation's income statement in a variety of ways and are used for various purposes and are a key metric indicating a company's financial health and efficiency.
There are two main types of profit:
Gross profit
Gross profit equals revenue minus the cost of goods sold, which consists of the direct material and labour expenses related to creating a company's products.
Operating profit
Operating profit equals gross profit minus other business expenses that are associated with running the company, such as rent, utilities, and payroll.
Essentially, profit is calculated by subtracting total expenses from total revenue. It's vital for business sustainability, expansion, and rewarding stakeholders and accurately measuring and maximising profit margins is essential for achieving long-term success and competitiveness in the market.
Revenue vs profit
When people refer to a company's profit, they are usually referring to the net income, which is what's left after expenses. It is possible for a company to make money but still have a net loss.
In an example below illustrating the importance of understanding revenue and profit, say a company producing light bulbs makes $10 million in the income generated. This sounds great, however, if the company's core business operations and debt add up to $12 million, the company is making a loss. Let's take a look at this example in greater detail below:
Business revenue or Total Net Sales: $10 million
Gross Profit: $4 million (total revenue of $10 million minus COGS of $6 million)
Operating Profit: $2 million (gross profit minus other business expenses such as rent, utilities, and payroll)
Profit or Net income: –$2 million (illustrating that the company is making a loss)
Profit will always be lower than revenue as this amount is determined after deducting all the operating and other costs.
A look at expenses
Operating expenses, including salaries, rent, marketing, direct costs, and utilities, which are necessary for day-to-day operations, and non-operating expenses, like interest payments or one-time costs, can impact profitability differently. By adequately controlling all expenses, businesses can maximise profit margins, reinvest in growth initiatives, and provide returns to stakeholders.
Overspending on unnecessary costs or failing to budget properly can significantly reduce profit margins, hampering long-term success. Therefore, monitoring and optimising expenses are integral parts of financial management strategies aimed at ensuring profitability and competitiveness in the market. With an effective strategy in place to measure and manage expenses, the price of goods and total sales will hopefully increase.
The importance of financial metrics
Financial metrics encompass a range of indicators used to assess a company's performance, including revenue growth rate, profit margin, and return on investment (ROI). These metrics provide insights into the effectiveness of business operations, helping organisations gauge their financial health and make informed decisions.
For instance, the revenue growth rate indicates the pace at which a company's sales are increasing over time, while the profit margin measures the proportion of revenue that translates into profit. Additionally, ROI assesses the efficiency of investments by comparing the gains or losses relative to the initial investment, aiding businesses in evaluating their investment strategies and maximising returns.
How to measure business performance
Measuring how well a business is doing means looking at both its revenue and profit. Revenue is all the money a business makes from selling things, while profit is what's left after taking away all the costs. By finding ways to make more money and spend less, a business can increase its financial health. Keeping an eye on important numbers like sales growth and profit margins helps a business see where it's doing well and where it can improve. This helps the business stay strong and competitive in the long run.
In conclusion
Companies base their success on two very important metrics: revenue and profit. While revenue is referred to as the top line, a company's profit is what really matters and is referred to as the bottom line.
It is crucial for investors to take both revenue and profit into account when making investment decisions, and to review the company's income statement in order to get a full view of the company's financial health.
In conclusion, revenue is the income a company makes without factoring in expenses such as debts, taxes, and other business costs. Profit, on the other hand, factors in all company expenses and operating costs.
When trading, market liquidity offers a measure of how quickly an asset can be converted to cash. The more market liquidity an asset has, the more easily it can be traded for cash. This comes into play when looking at its price point: the more tradable an asset, the less impact the trade will have on the asset's price.
Other factors to look out for include trading volume, technical indicators, and volatility. Liquidity is important for everything across the stock market and digital asset market to a company's liquidity, with liquid assets always being preferable. Let's first take a look at what liquidity is, the most liquid assets and the key takeaways liquidity refers to.
What does liquidity mean, exactly?
In its simplest form, liquidity looks at how easily and quickly an asset can be converted to another asset (bought or sold) without affecting its price. Liquidity can also sometimes be referred to as a cash ratio or marketable securities. A liquidity ratio helps investors determine whether something is a liquid asset or not and how easy it will be to convert assets.
When an asset has good market liquidity, this means that it can easily be traded for cash or other assets with no effect on the asset's market price. Referred to as liquid assets, these would include currencies, marketable securities, and money market instruments. This provides peace of mind to investors that have other financial obligations.
On the other hand, low liquidity means that the asset cannot be as easily bought or sold and any transaction that takes place will affect the asset's trading price. Real estate, rare items, and exotic cars present examples of illiquid assets, meaning that they may take longer to be sold, and not necessarily at the price the seller is expecting to receive.
What is the most liquid asset?
In terms of financial liquidity, cash is considered to be the most liquid asset.
Think of liquidity as a spectrum - on the one hand, you have cash (highly liquid) and on the other, you have rare items. Consider where on the spectrum an asset might fall to get an idea of its liquidity.
Types of liquidity
In a general sense, there are two types of liquidity: market liquidity and accounting liquidity used to measure the current ratio of an asset or company.
What is market liquidity?
The first of the two types of liquidity is market liquidity, defined as the ease with which a financial asset may be bought and sold at fair prices. These are the prices that are most similar to the assets' actual value, known as their intrinsic value.
Intrinsic value in this case refers to the lowest price a seller is willing to accept (ask) and the highest price a buyer is willing to pay for it (bid). The bid-ask spread, also known as the trading spread, is the difference between these two values. The lower the bid-ask, the greater the liquid asset.
What is accounting liquidity?
Accounting liquidity describes a company's ability to pay its short-term debts and liabilities with its current assets and cash flow. In other words, it reflects the company's financial health: the higher the company's accounting liquidity the more liquid the company's capital.
Most commonly, you'll hear accounting liquidity mentioned in relation to businesses and their balance sheet. This has less to do with liquid assets and more to do with businesses, and the company's financial health, as a whole.
What is a bid-ask spread?
The bid-ask spread refers to the difference between the highest bid and the lowest ask price. As you would expect, a low bid-ask spread is preferred in liquid marketplaces. It implies that the market has sufficient liquidity since traders continuously bring the high and low prices back into balance.
A wide bid-ask spread, on the other hand, generally indicates illiquidity in an asset and a substantial gap between what buyers are willing to pay and what sellers are willing to accept.
The bid-ask spread plays a valuable role for arbitrage traders as they attempt to take advantage of minor disparities in the bid-ask spread over and over again.
While they make money, their activities help to support the market as they reduce the bid-ask spread, and other traders will have better trade execution as a result of their activity.
Arbitrage traders also make sure that the same market pairs do not have significant price disparities on various exchanges. Have you ever seen how the Bitcoin price is roughly similar across the most liquid markets? This is due in large part to arbitrage traders who exploit small variances between prices on different exchanges to profit.
Why liquidity plays an important role in the markets
Bigger stocks and digital currencies tend to have more liquid markets due to their higher trading volume and market efficiency.
The amount of money traded per day, otherwise known as liquidity, varies depending on the market. For example, some markets may only have a few thousand dollars of trading volume while others have billions.
Assets from large companies or establishments don't usually have issues with liquidity since there are many buyers and sellers in their respective markets. However, this isn't the case for less traded assets which often lack significant liquidity.
When building your portfolio ensure that you incorporate (or stick to) liquid markets so that you can always know that should you wish to liquidate the asset you will get a good price. Sometimes with smaller assets, you might not be able to exit the market at your desired price leaving you with an invaluable asset or one traded at a significantly lower price.
This is known as slippage and can result from trying to fill a large order in an illiquid market. Slippage is the difference between the price you intended to sell at and at what price your trade is actually executed.
High slippage indicates that your transaction was completed at a significantly different price than you intended. This usually occurs because there aren't enough orders in the order book near to where you wanted to execute them. This can be avoided by only using limit orders, but this runs the risk that your order may not be filled.
The market conditions significantly affect liquidity. For example, in a financial crisis, different traders might respond by either selling their assets or withdrawing cash.
Final thoughts
When it comes to the markets, liquidity refers to the ease of trading in a market. Traders often favor liquid markets because they provide convenient access for entering and exiting positions. The level of liquidity can influence the efficiency and effectiveness of trading strategies. Depending on your preferences, you might consider including highly liquid assets in your portfolio, which can have benefits in terms of flexibility.
