It's no secret that trading any financial market is hard work. Traders need to keep calm, level-headed, and observant at all times while staying on top of the market's ever-changing movements.

While making mistakes is part of the game, we've outlined 5 of the biggest common mistakes you can avoid while you navigate the often turbulent waters of any trading system and technical analysis.

What is technical analysis?

Technical analysis (TA) is one of the most popular methods for analyzing financial markets. At its core, it uses previous price action and volume data to predict future market behavior by identifying trends and favorable trading opportunities.

It can be applied to the chart patterns of any kind of market, including stocks, forex, commodities, and cryptocurrencies. While the basics are not too difficult to understand it takes a lot of practice to become an expert technical analyst.

This form of analysis typically looks at historical price action, while fundamental analysis (FA) looks at multiple factors affecting the price of an asset.

5 common mistakes made when it comes to using technical analysis

1. Know when to cut your losses

No matter how big or small, always prioritize protecting your investment. In the world of trading and investing, this is non-negotiable if you want to see any returns. A great way to approach trading is to start out with the following mindset: you're not here to win, you're here not to lose.

Start with small positions, set up a stop-loss, and know when to cut your losses.

2. Don't ignore extreme market conditions

While the markets are typically governed by supply and demand, there are cases where extreme conditions like black swan events can throw your carefully curated technical analysis to the curb. Sometimes emotion and mass psychology can cause periods of extreme market conditions, and you will need to adjust your trading strategy accordingly.

If you make decisions based solely on readings from technical tools, you run the risk of losing money, especially during black swan events when it can be tough to understand what's happening. Keep in mind that market conditions can change rapidly and without warning, so it's always important to consider other factors before making any decisions and risking real funds.

3. Avoid revenge trading

Revenge trading is a term used to describe when a trader tries to immediately recover a significant loss through making alternative trades. Infringing the golden rule of not making trades based off emotions, revenge trading is a no-no.

Harness your inner zen and attempt to stay calm through both big and small mishaps. Sticking to your trading plan will be the best thing you can do, and make adjustments as need be based off of logical thinking and an analytical approach.

Immediate trading after a severe loss often leads to more losses. Therefore, some traders take a break from trading altogether for a while after they lose big. By taking this breather, they can come back with fresh mindsets and restart their trading journey.

4. Remind yourself (constantly) that TA is a game of probabilities

Technical analysis is all about probabilities and not absolutes. This means that no matter what technical approach you’re using, there’s never a 100% guarantee that the market will behave as you expect. Even if your analysis suggests that there’s a very high probability of the market moving up or down, it's still not set in stone.

As you're getting your trading strategies together, there's one aspect you always need to keep in mind: don't think the market will go how your analysis predicts. This is a mistake even experienced traders make, and it leads to bad decisions like betting too much money on one outcome instead of spreading it out. That puts you at risk of losing a lot financially if things don't go your way.

5. Don't blindly follow anyone's trading strategies

A great way to learn how to trade the financial markets is by observing experienced technical analysts and traders. However, in order to master your own skills you will need to establish what your own strengths are and how to leverage them.

Observing other traders doesn't present a fool-proof trading strategy as something that works for one trader might not work for another. With countless ways to make money off of the markets, find your own trading style that is best suited to you.

Initially, you might get lucky by making trades based off of another person's opinion. However, if you continue down this road without comprehending why they made that choice, it will only lead to detrimental consequences in the future.

Learning from others is key, but it is more important that you think for yourself and agree with the trade before moving forward. Do not let anyone else make decisions for you blindly, no matter their experience level.

In conclusion

While trading isn't easy and there is certainly no quick fix to success, the above are some helpful starting points to consider when entering the world of technical analysis.

Remember that it takes practice, and while approaching trading with a longer-term mindset is a great way to start, ideally, you want to build habits that allow you to be in control of your trading decisions and avoid common mistakes.

Constantly manage your risks and learn from your mistakes when you make them in order to capitalize on your strengths and improve. This advice serves both professional traders and newbies.

The process of investing involves putting your money or capital into something with the aim of earning more money and making a profit. Investment strategies are sets of principles, rules, and approaches that an investor follows to manage their investment portfolio. A sound investment strategy can help an investor achieve their financial goals, manage risk, and maximize returns.

In this article, we will provide a beginner's guide to investment strategies, including its definition, benefits, types, and key principles. We will also discuss various investment terms and jargon that a new investor should know.

What are investment strategies? 

Investment strategies are plans of action that an investor follows to manage their investment portfolio. It involves selecting investments that align with their financial goals, risk tolerance, and time horizon. Good investment strategies takes into account market conditions, diversification, and risk management techniques. 

The primary goal of investment strategies is to help investors maximize their returns while minimizing potential losses. These strategies can be created by the investor themselves or by a financial advisor and used across varying markets, from the stock market to the crypto market.

The benefits of having an investment strategy

Having an investment strategy can help you achieve various financial goals, whether they be generating income, building wealth, or funding retirement. It also helps you manage risk, reduce potential losses, and maximize returns. Strong investment strategies consider each investor's specific investment objectives, time horizon, risk tolerance, and market conditions.

Various types of investment strategies

There are several types of investment strategies that investors can implement during the investing process depending on their unique circumstances (risk tolerance, capital, financial goals, etc.). From value investing to income investing, we cover the most popular investment strategies below.

Value investing

Value investing is a strategy that involves buying stocks that are undervalued compared to their intrinsic value. This approach seeks to identify companies that are trading on the stock market at a discount price and have strong fundamentals.

Growth investing

The growth investment strategy is one of the best investment strategies as it focuses on investing in companies with high growth potential, even if they are currently trading at a premium. This growth investing strategy is designed around identifying companies with strong earnings growth, innovative products, or dominant market positions. Growth stocks will typically encompass both mature and emerging companies.

Income investing

The income investing strategy focuses on generating regular income from investments, such as dividend stocks, bonds, or real estate investment trusts (REITs). Here the aim is to provide a steady stream of income for investors, especially those who are retired or seeking passive income.

Index investing

Index investing is also one of the more common investment strategies that seeks to replicate the performance of a particular market index, such as the S&P 500 or the NASDAQ. This approach offers investors broad exposure to the market at a low cost.

Momentum investing

Momentum investing is a strategy that involves buying stocks that have shown strong performance in the past and continue to outperform the market. The aim here is to capitalize on the trend of rising prices and momentum in the market.

Contrarian investing

Contrarian investing is a stock market focused strategy that involves buying stocks that are out of favor with the market or have fallen out of favor. This strategy centers around identifying companies that are undervalued by the market and have the potential for a turnaround.

Active investing 

Active investing is a strategy that involves actively managing a portfolio, often through the frequent buying and selling of assets. This strategy generates higher returns than passive investing but requires more time, research, and expertise.

The key principles of investment strategies

Regardless of which of the different investment strategies one chooses, here are some key principles that every investor should follow.

Set investment goals

Before you start investing, you should have clear investment goals and a plan to achieve them. Your investment goals should be specific, measurable, achievable, relevant, and time-bound.

Diversify your portfolio

Diversification is the process of spreading your investments across different asset classes, sectors, and regions. Diversification helps reduce risk by minimizing the impact of any single investment or market event on your portfolio.

Manage risk

Remember that all investments carry some level of risk, and it is important to manage risk to avoid potential losses. You should assess your risk tolerance and invest accordingly. You can also use risk management techniques, such as stop-loss orders, to limit your potential losses.

The long-term investment strategy

Investing is a long-term game, and you should be patient and disciplined in your investment approach. Playing the long game and investing in long term investments is more likely to deliver financial independence.

Control your emotions

Emotions can cloud your judgment and lead to irrational investment decisions. It is important to control your emotions and stick to your investment strategy, even during market downturns or volatility.

Focus on fundamentals

When selecting investments, it is crucial to focus on the fundamentals of the underlying companies or assets. This includes factors such as revenue growth, earnings, valuation, and competitive advantage.

Stay informed

The investment landscape is constantly changing so ensure that you stay informed about market trends, economic indicators, and company news. This can help you make more informed investment decisions and adjust your strategy as needed.

Investment terms that every investor should know

As a new investor, you may encounter various investment terms and jargon that can be confusing. Here are some of the most common investment terms and their definitions:

Stock: A stock represents ownership in a company and gives the holder a claim on a portion of its assets and earnings.

Bond: A bond is a debt security that represents a loan made by an investor to a borrower, typically a corporation or government.

Mutual funds: mutual funds are a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets.

ETF: An ETF, or exchange-traded funds, tracks a particular market index and can be bought and sold on an exchange like a stock.

Asset allocation: Asset allocation is the process of dividing your portfolio among different asset classes, such as stocks, bonds, and cash, to achieve your investment goals and manage risk.

Market capitalization: Market capitalization refers to the total value of a company's outstanding shares of stock, calculated by multiplying the number of shares by the current market price.

Dividend: A dividend is a distribution of a portion of a company's earnings to its shareholders, typically paid out in cash or additional shares of stock.

Expense ratio: The expense ratio is the annual fee charged by a mutual fund or ETF to cover its operating expenses, expressed as a percentage of the fund's assets.

P/E ratio: The price-to-earnings ratio compares a company's current stock price to its earnings per share, indicating how much investors are willing to pay for each dollar of earnings.

Yield: Yield refers to the income generated by an investment, typically expressed as a percentage of its price or face value.

Market order: A market order is an instruction to buy or sell a security at the current market price, regardless of the price level.

Limit order: A limit order is an instruction to buy or sell a security at a specific price level or better.

Stop-loss order: A stop-loss order is an instruction to sell a security if its price falls below a specified level, designed to limit potential losses.

Bull market: A bull market is a period of rising stock prices and optimistic investor sentiment.

Bear market: A bear market is a period of declining stock prices and pessimistic investor sentiment.

Conclusion

Investing can be a complex and challenging endeavor, but having a sound investment strategy can help you achieve your financial goals and manage risk. By understanding the different types of investment strategies, key principles, and investment terms, you can become a more informed and confident investor. 

Remember to set clear investment goals, diversify your portfolio, manage risk, invest for the long term, control your emotions, focus on fundamentals, and stay informed. With these principles in mind, you can develop an investment strategy that suits your needs and helps you achieve financial success.

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How can I buy Bitcoin with my debit card?

Cryptocurrency has become a popular investment option for many people in recent years. If you're looking to buy cryptocurrency with a debit card, you're in luck - Tap offers a quick and easy way to get started and purchase Bitcoin.

In this guide, we'll walk you through the advantages and disadvantages of buying cryptocurrency with a debit card and help you navigate the process securely and conveniently. We'll also take a look at why a debit card offers a better payment solution than a credit card.

The advantages and disadvantages of buying crypto with a debit card

Buying cryptocurrency with a debit card has both advantages and disadvantages. On the one hand, it's a convenient and straightforward way to purchase cryptocurrency without the need for a bank transfer or other complex payment methods. On the other hand, there are also some potential downsides to consider.

One advantage of buying cryptocurrency with a debit card is speed. Transactions are processed quickly, and the cryptocurrency is usually available in your wallet almost immediately. This can be particularly useful if you want to take advantage of a sudden price drop or rise in the market.

Another advantage is that using a debit card is a familiar payment method for most people. It's easy to use and doesn't require any additional setup, making it an accessible option for those who are new to cryptocurrency.

However, there are also some disadvantages to consider. One of the main drawbacks of using a debit card to purchase cryptocurrency is the fees. Credit or debit card fees can be higher than other payment methods, such as bank transfers or a cryptocurrency exchange. These fees can eat into your profits, particularly if you're making frequent transactions.

Another disadvantage of using a debit card is security. Using a debit card to purchase cryptocurrency involves sharing sensitive financial information, which can be vulnerable to fraud or theft. It's essential to take steps to protect your information, such as using a reputable platform that offers a safe and reliable place to buy BTC, enabling two-factor authentication, and regularly keeping an eye on your account activity.

In summary, buying BTC and other cryptocurrencies with a debit card can be a fast and convenient way to invest in the market, but it's important to be aware of the potential fees and only use reputable platforms for crypto services.

The low down on buying crypto with credit and debit cards

When it comes to buying Bitcoin or other digital assets, it's generally better to use a debit card rather than a credit card. There are several reasons why this is the case.

First and foremost, many banks and financial institutions have disabled the ability to buy cryptocurrency with a credit card. The reasons vary from bank to bank however, for the most part, the option to buy digital assets is blocked. 

Secondly, using a debit card can help you avoid accumulating debt. Unlike a credit card, which allows you to borrow money that you will need to repay later, a debit card is linked directly to your checking account.

This means that you can only spend the money that you have in your account. By using a debit card to buy Bitcoin, you can ensure that you're not overspending or accumulating debt that you may struggle to repay.

Lastly in the debate of using a credit or debit card, using a debit card can often be cheaper than using a credit card. The few credit card companies that allow crypto purchases tend to charge high fees or interest rates for such purchases, while debit card fees tend to be lower. This can save you money in the long run, particularly if you're making frequent transactions.

How to buy Bitcoin with a debit card

While Tap offers various payment methods below we will guide you through how to buy Bitcoin instantly using a debit card. If this is your first Bitcoin purchase, have no fear - the process is simple and straightforward. We'll have you owning digital assets in just a few clicks.

Step 1: Create a Tap account

The first step is to create an account on Tap's app. If you haven’t done so already, download the app from the Google or Apple store onto your mobile phone.

Step 2: Verify identity

Once you've created your account, you'll need to verify your identity in order to buy Bitcoin and make card purchases. This account verification process involves uploading a copy of your government issued ID, passport or driver's license, as well as a selfie.

Step 3: Add funds to your Tap account

Before you can buy Bitcoin, you'll need to add funds to your Tap account. Select Cash from the Asset selection on the home page and choose a fiat currency. Select Add via Debit Card from the multiple payment options and follow the prompts to add your card details. 

Alternatively you can deposit money from your bank account using the bank transfers option.

Step 4: Select Bitcoin from the Crypto menu

Under the Cash option, select Crypto for the list of crypto assets you can purchase with Tap and then choose Bitcoin. Click on Options and then select Buy under the Buy Bitcoin heading. Scroll down to locate the fiat currency you loaded your account with and wish to use to buy Bitcoin instantly.

Step 5: Enter the amount you want to buy

Enter the amount of Bitcoin you would like to buy. Tap will automatically calculate the amount of Bitcoin you'll receive using the smart router technology which scans multiple top exchanges and order books to find the best available price. 

Step 6: Confirm your Bitcoin purchases

Review your buy Bitcoin purchase details, including the exchange rate and fees, select Confirm Trade and enter your passcode as prompted in order to buy Bitcoin instantly.

Step 7: Receive your Bitcoin

Once your purchase is complete, you'll receive your Bitcoin in your Tap wallet. 

That's it! With these seven steps, you can easily and securely buy Bitcoin using the Tap trading platform with the ease you would making any other debit card purchases. No need for a complicated wallet address or advanced trading tools, just straightforward payment options for Bitcoin purchases.

Once the BTC has been received into your own wallet you can choose to hold Bitcoin, sell Bitcoin or even trade Bitcoin. The funds will remain in your account for as long as you like, and you can access the unique wallet address from which you can trade.

In conclusion

Buying Bitcoin with a debit card can be a convenient and accessible way to enter the world of digital currency. However, it's important to consider the potential fees and security risks involved before making a purchase.

By taking the necessary precautions and using a reputable and fully regulated platform such as Tap, you can safely and easily buy Bitcoin or any other of the supported cryptocurrencies with a debit card and start building your investment portfolio. 

As always, it's essential to do your research before making a crypto investment, keep up with the latest developments in the market, and make informed decisions to help you achieve your financial goals.

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.

Balancer is an automated market maker (AMM), a recent innovation making up a large part of the greater DeFi ecosystem. Doing without order books and accounts, AMMs are underlying protocols for decentralized exchanges that use smart contracts to facilitate trading. Designed to be permissionless and frictionless, AMMs allow for quicker and more secure trading without having to rely on a third party. 

What is Balancer (BAL)?

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 pools

One of the unique features of Balancer is that it allows users to create customizable liquidity pools of digital assets, with the ability to set their own weights and ratios for each asset. This provides traders with more flexibility in terms of trading pairs and potentially earning higher returns.

Liquidity pools for liquidity providers

For example, a user could create a liquidity pool that is weighted 75/25 between ETH and DAI which will automatically adjust itself to keep the tokens equally weighted regardless of price changes. This allows traders to access more specific trading pairs and can potentially lead to more efficient trading prices.

Additional services offered

Additionally, Balancer offers a number of other features that make it a popular choice among DeFi enthusiasts including flash loans and smart order routing. Flash loans allow users to borrow assets without any collateral, useful for traders who need to access a large amount of capital quickly, while smart order routing helps traders find the best prices across different liquidity pools. 

Balancer pool tokens

Balancer (BAL) is the platform’s native token that is used as a governance token and can be earned through trading and providing liquidity in the Balancer pools on the platform. 

Balancer V2

The original version was launched in 2020, with Balancer V2 launched in 2021. Overall, Balancer V2 is a significant upgrade to the Balancer protocol, and is designed to improve the user experience and flexibility of the platform, while also making it more competitive in the rapidly-evolving DeFi ecosystem.

Who created Balancer?

Balancer falls under Balancer Labs which was created by Fernando Martinelli and Mike McDonald, who are both experienced blockchain developers and entrepreneurs. The project was incubated by blockchain investment firm Placeholder and received funding from a number of prominent venture capital firms.

Originally starting out as a research program at BlockScience, a software consulting firm, in 2018, Balancer Labs raised $3 million through a private funding initiative in 2020. 

How does Balancer work?

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.

For example, a Balancer pool might start with 25% ETH, 25% DAI, and 50% LEND. If the price of LEND doubles, the Balancer protocol will automatically reduce its LEND holdings in the pool to maintain the 50% allocation. The smart contracts then make the excess LEND available to traders looking to buy it.

What's more, liquidity providers still earn fees even as their index funds get rebalanced, which is different from traditional index funds where investors pay fees for rebalancing services.

Balancer offers various pool types, including public, private, and smart liquidity pools, each with its own parameters and features.

Public pools

Public Balancer pools are open to any user to provide liquidity and earn fees.

Smart pools

Smart pools have flexible parameters and can be programmed to perform additional functions, such as changing weights and altering swap fees.

Liquidity Bootstrapping Pools (LBPs) are a type of smart pool that enables projects with low capital to raise liquidity for their native tokens using a variable weighting system. This allows for constant downward pressure on the price to prevent market manipulation by bots and whales.

With Liquidity Bootstrapping Pools, the first buyers pay the highest price, and the weight gradually lowers over time to create efficient price discovery.

Private pools

Private Balancer pools, on the other hand, are useful for asset managers with large portfolios seeking to earn fees on specific assets. Only the pool creator can add or withdraw assets, and they can adjust all other parameters, including fees and weightings.

Overall, Balancer is a powerful DeFi platform that provides users with more flexibility and control over their digital asset holdings, with customizable index funds that automatically rebalance to maintain desired ratios, and various pool types to suit different needs and risk appetites of liquidity providers .

What is Balancer V2?

Balancer V2 is the second version of the Balancer protocol, released in May 2021, that includes a number of new features and improvements designed to make the platform more efficient, user-friendly, and flexible.

Assisting those looking to provide liquidity, engage in an automated market maker, or use the platform for alternative purposes, the new version has been well received by Balancer users and the greater crypto community.

Single-asset pools

One of the key features of Balancer V2 is the introduction of "single-asset pools," which allow users to create Balancer pools with only one asset. This can be useful for traders who want to provide liquidity for a single asset or for developers who want to use Balancer's infrastructure for other purposes.

Smart vaults

Smart vaults are customizable templates for liquidity pools that include a range of different settings and parameters. This can help simplify the process of creating and managing liquidity pools, and can potentially lead to more efficient and effective trading strategies for the liquidity providers.

Gas efficiency and speed

This Balancer protocol upgrade was designed to help reduce the cost and time required to execute trades on the platform. Additionally, Balancer V2 includes new integrations with other DeFi protocols and applications, which can help increase the liquidity and functionality of the platform.

What is the BAL token?

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. 

Holders of BAL can participate in Balancer's governance process, including proposing and voting on changes to the Balancer protocol. They also receive a share of the trading fees generated by the platform, proportional to the amount of liquidity they provide.

The cryptocurrency has a maximum supply of 96 million tokens, 5 million of which were sold to investors and 25 million awarded to shareholders and employees after the initial funding round. 10 million BAL have been set aside, 5 million reserved for sales to future investors and the other half reserved for a fund used for contributors. 

How can I buy BAL tokens?

Users looking to trade using automated market maker (AMM) technology can tap into the Balancer (BAL) market by accumulating the governance token directly through the Tap app. Using a range of fiat and cryptocurrencies, users can buy BAL tokens which can be stored in unique wallets created specifically for the user. 

BAL tokens can then be stored for any amount of time, traded for other cryptocurrencies, sold for fiat currencies or sent to friends and family anywhere in the world. The Tap app provides a seamless solution to your crypto needs.

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International Bank Account Numbers (IBANs) were first implemented by the European Central Bank (ECB) to provide a simpler way of transferring money to other countries. Now used around the world, IBANs have become a permanent fixture in the banking world and a vital component of international money transfers.

In this article, we cover what an IBAN number is, what it looks like, the difference between IBAN and swift codes, and lastly, where to find yours.

What is an IBAN number?

Short for International Bank Account Number, IBANs are unique account numbers assigned to an account for the purpose of making international money transfers easier. An IBAN number acts as a screening system that confirms account data before transferring funds between international banks. 

The system was implemented to create an international standard for transnational transactions and reduce errors within the EU but has since been adopted by countries far beyond those borders. Since being implemented international money transfer errors have been reduced to 0.1% of total transfers. 

What does an IBAN number look like?

An IBAN number is an alphanumeric code of up to 34 characters. Not to be mistaken for a bank account number, an IBAN typically includes the account number along with several other identifying codes. These include codes that identify the bank the funds are being sent to and the country. So what does an IBAN number look like?

An International Bank Account Number will always include:

• A two-letter code identifying the country
• Two check digits
• The bank code
• A code of up to 30 characters is known as the Basic Bank Account Number (BBAN) which is decided on by the country and is used as a national standard for domestic payments.

For example, a UK IBAN number will have the following format:

GB28VBCD12345612345678

GB represents the country code

28 represents the check digits

VBCD represents the bank code

123456 represents the sort code

And the next 12345678 represents the account number. 

SWIFT codes vs IBAN numbers

You might be wondering at this stage what the difference is between a SWIFT code and an IBAN number. Let’s explore the difference below.

A SWIFT code (Society for Worldwide Interbank Financial Telecommunication), also known as a Bank Identifier Code (BIC), is a unique identification bank code used to identify the specific financial institution in international wire transfers. SWIFT codes consist of either 8 or 11 characters and include information about the bank and its location.

An IBAN (International Bank Account Number), on the other hand, is a standardized international numbering system used to identify bank accounts for international money transfers. As covered above, it typically consists of a country code, two check digits, and a BBAN. The purpose of the IBAN number is to help ensure that international payments are processed accurately and efficiently.

In summary, a SWIFT code is used to identify a specific bank or financial institution in international wire transfers. An IBAN number is used to identify a specific bank account in cross-border transactions.

Both codes are important for international money transfer and are used in conjunction with each other to ensure that funds are transferred to the correct account at the correct institution.

How to find your IBAN number

To find your IBAN number, you will need to check your bank statements, online banking portal, or contact your bank directly. The exact process for finding your IBAN number may vary depending on the country and financial institution, but here are some general steps you can follow:

Check your bank statement: Your IBAN number should be listed on your bank account statement, which you can access online or receive in the mail.

Check your online banking portal: If you use online banking, you can usually find your IBAN number by logging into your account and navigating to your account details or settings.

Contact your bank: If you cannot find your IBAN number through the above methods, you can contact your bank directly and ask them to provide it for you. Be prepared to provide your account number and other identifying information.

It's important to note that not all countries use an IBAN number, so if you are sending or receiving an international payment, you may need to use a different format for bank account identification.

Additionally, IBAN numbers can vary in length and format depending on the country and financial institution. Before you transfer money or make an international transaction always check what information is required and whether it is accurately inputted.

Tap’s business account and IBANs

When creating a business account on the Tap network, users will automatically gain access to their own IBAN number which can be used to receive international payments. With several currency options, the account caters to a wide range of industries and services.

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