Are you ready to embrace the future of cashless payments? As Europeans increasingly rely on digital payment methods, the European Union is exploring implementing a safe and effective transition. Enter the digital euro, a potential game-changer in the world of virtual money. 

In this article, we'll dive into what the digital euro is all about and how it works. Get ready to discover how this innovative currency could streamline transactions, reduce costs, and empower individuals and businesses throughout the Eurozone. It's high time we unlock the possibilities of the digital euro and embrace the convenience of a cashless future.

What is the digital euro?

The digital euro, at its core, is a virtual currency designed for the Eurozone. It operates entirely digitally, making transactions fast, secure, and innovative. As a digital currency, it exists in electronic form, with no physical counterpart like traditional banknotes or coins. 

The European Central Bank (ECB) plays a crucial role in issuing and managing the digital euro, ensuring its legal value and guaranteeing its acceptance alongside physical cash. With the ECB's oversight, the digital euro aims to provide a seamless and convenient payment method for businesses and individuals alike, revolutionising the way we handle money in the digital age.

Is the digital euro a cryptocurrency?

No, the digital euro is not considered a cryptocurrency. While both the digital euro and cryptocurrencies are virtual assets, there are key differences between them. 

Cryptocurrencies, like Bitcoin, are typically decentralised and operate independently of central banks or public authorities. They are often issued by private individuals and allow for peer-to-peer transactions without the need for intermediaries like central banks. 

In contrast, the digital euro will be issued and regulated by the European Central Bank (ECB), making it a central bank digital currency (CBDC). The digital euro will operate on a centralised system and will be managed and regulated using blockchain technology operated by the central bank.

Why do we need a digital euro?

The digital euro has several key objectives aimed at transforming the financial landscape. Firstly, it seeks to enhance financial integration within the Eurozone by providing a common and easily accessible digital payment solution for all member countries.

Secondly, the digital euro aims to bolster security, offering a safe and trusted digital currency that can mitigate risks associated with traditional payment methods. For users, the digital euro promises convenience by enabling fast and seamless transactions, eliminating the need for physical currency. 

Additionally, it has the potential to be cost-effective, reducing transaction fees and providing efficient payment options for both businesses and individuals. The digital euro also allows anyone to use the currency without creating a bank account associated with the central bank.

How will the digital euro work?

The virtual currency operates on an innovative framework, known as blockchain technology, revolutionising the way we transact. To use the digital euro, individuals and businesses will need to create a digital wallet, similar to those used for cryptocurrencies.

However, unlike cryptocurrencies, the digital euro will be issued and regulated by the European Central Bank (ECB), ensuring its stability and legal value. Despite it being a digital currency, it is still regarded as central bank money as it is operated by the central bank. Users won't require a traditional bank account, as the digital euro can be deposited directly at the European Central Bank. This empowers individuals to engage in peer-to-peer transactions without relying on commercial banks as intermediaries. 

With blockchain technology as its backbone, the digital euro ensures secure, traceable, and efficient transactions, making it a cutting-edge payment method for the modern era while remaining central bank money.

Advantages of implementing the digital euro

The modern payment tool is designed to empower all private citizens and businesses in the Eurozone. Once approved, the digital euro will revolutionise transactions with its simplicity and immediacy. Here's what it brings:

Streamlined processes

The digitization of payments will make purchases and money transactions simpler and faster.

Cost savings

The digital euro significantly reduces costs associated with payment systems, putting more money back in your pocket.

Environmental benefits

By embracing the digital euro project, we contribute to a drastic reduction in the ecological footprint associated with monetary and payment systems within the financial sector.

Instant support

In times of need, governments can swiftly provide economic aid to citizens, thanks to the digital euro.

Anti-money laundering

With transaction registration, we can effectively combat money laundering and tax evasion.

Financial inclusion

The digital euro ensures everyone, even those without a bank account, can enjoy the simplicity and security of digital payments within the financial system.

Risks associated with the digital euro

While the digital euro brings numerous benefits, it's important to be aware of potential risks. Here are a few considerations:

Privacy

The digital euro complements physical cash, known for its anonymity. While it aids in anti-money laundering, tracking payments could limit citizen privacy to some extent.

Impact on banks

As the digital euro gains popularity, deposits in credit institutions may decrease, potentially affecting loan availability. Credit institutions and payment intermediaries, and even national central banks, may need to revise their business models to adapt to the digital euro ecosystem and safeguard financial stability within the greater financial system.

Traditional euro vs the digital euro

When comparing the digital euro to traditional currency, there are both similarities and differences to consider. In terms of similarities, both the digital euro and physical currency share the fundamental purpose of facilitating transactions and serving as a medium of exchange. While the digital euro operates in the digital realm, central banks physical banknotes and coins continue to play a significant role in everyday transactions alongside the digital euro. It's important to note that both are central bank money.

However, key differences set the digital euro apart. The digital euro offers advantages such as faster transactions, as it eliminates the need for physical exchange and reduces processing times. 

Additionally, the digital euro promotes financial inclusion by enabling individuals without a bank account to participate in the digital economy, expanding access to secure and convenient payment methods. The digital euro is not designed to replace the traditional currency, but rather coexist alongside it.

It is, however, poised to shape the future of currency.

The current landscape of CBDCs

While the digital euro is expected to take 5 years to implement, other countries around the world are also in the running to release a central bank digital currency of their own. In fact, approximately 50 central banks around the world are actively researching or experimenting with central bank digital currencies, confirming that the race to embrace digital currencies and central bank money is on. 

The Bahamas lead the pack with their Sand Dollar, a digital version of the Bahamian dollar launched in October 2020. The dollar offers users free mobile transactions and a safer option than carrying cash. Other noteworthy initiatives include China with the digital renminbi (e-CNY) already in testing and Sweden’s e-krona, and now, the digital euro project.

This thriving landscape in the financial system signifies the growing acceptance of digital currencies by central banks. As financial inclusion, individual financial stability, streamlined payment systems, and the emergence of private cryptocurrencies take centre stage, the exploration of CBDCs empowers nations and central banks to shape the future of money and unlock new possibilities for a digitally empowered society.

Final thoughts

In conclusion, the digital euro represents a transformative leap toward a cashless future. With its aim of enhancing financial integration, strengthening security, and providing convenient payment options, the digital euro has the potential to revolutionise the way we handle money in the Eurozone. 

Operating on blockchain technology and regulated by the European Central Bank, the digital euro offers fast, secure, and efficient transactions, empowering individuals and businesses alike. While the digital euro coexists with physical currency, its advantages, such as faster transactions and increased financial inclusion, make it a promising addition to the financial landscape.

As countries worldwide explore the potential of central bank digital currencies, including the Sand Dollar, the future of digital currencies appears bright, heralding a new era of financial empowerment. Keep an eye out for the digital euro in months to come.

PayPal enjoys immense popularity in the realm of online shopping. However, were you aware that it can also serve as a means for conducting personal money transfers? If your experience with this online payment platform is relatively recent, keep reading to learn more.

It’s safe to say that most people using online payment methods are familiar with PayPal. Known for its swift and seamless transactions, the nature of PayPal is appreciated by millions. Taking things one step further, the payment platform has launched a Friends and Family function to make payments even more simple.

In this guide we’re divulging the details of the new function, exploring how it works and the fees they charge. After all, who doesn’t want to know a more convenient and secure way to send money to your loved ones?

However, keep in mind that PayPal isn't the sole option for online shopping and sending digital payments.

Check out at the Tap account and Tap card – they offer a convenient blend of minimal fees, advantageous exchange rates, and ease of use. This solution is perfectly tailored for handling international payments and has the potential to significantly reduce your expenses.

How does the PayPal Friends and Family feature work?

The PayPal Friends and Family feature works by enabling users to send money to their friends and family swiftly. 

According to the website, users need to have a PayPal account and select the "Send Money" option when wanting to make use of the function. Then, choose the "Sending to a friend " option, entering the recipient's email or phone number, and the payment amount. 

Once confirmed, the funds are transferred securely, and the recipient can receive the money in their PayPal account. It's a straightforward and convenient way to share money with loved ones, making transactions fee-free (if conducted with GBP) and creating a closer connection within your inner circle.

Note that the transactions are only fee-free if they are done without a currency conversion and you use your bank account or PayPal balance. If you execute the transaction using a debit or credit card or to another currency, a fee will be applicable (see below). 

PayPal’s Friends and Family vs. Goods and Services

When using PayPal, it's important to know the differences between PayPal's Friends and Family feature and the Goods and Services feature.

Friends and Family is best for casual, non-commercial transactions, like sending money to family or splitting the bill with friends, as it's mostly fee-free. However, it lacks buyer and seller protections. 

Goods and Services, on the other hand, is for commercial transactions, offering added security, buyer protection, and seller protection. These payments are subject to a fee, incurred by the seller of the item you’re purchasing. 

The pros and cons of using PayPal Friends and Family

The advantages of using the feature

Firstly, fee-free transactions make it an economical choice for sending money to loved ones or splitting expenses with friends. The Friends and Family feature allows users to save on unnecessary fees, maximising the value of their transfers. 

Secondly, PayPal ensures enhanced security measures, safeguarding users' transactions through encryption and fraud prevention tools. This instils confidence in users, knowing their funds are protected from unauthorised access. 

Lastly, the convenience and speed of PayPal Friends and Family make it an attractive option for quick and seamless money transfers, ensuring that recipients receive the funds promptly. 

The limitations of the feature

While PayPal Friends and Family offers numerous benefits, it also has certain limitations and requires responsible use. 

Firstly, it's important to be aware of the restrictions on payment types allowed in Friends and Family transactions, as certain purchases, such as for goods or services, should be conducted through the Goods and Services option for added protection. Using PayPal Friends and Family for business-related transactions violates PayPal's terms of service, potentially leading to account limitations. 

Secondly, following best practices ensures secure transactions, such as only sending money to people you trust, verifying recipient information, and keeping communication open. 

As mentioned above, it’s important to note that when sending funds to friends and family in other currencies there are fees involved. This fee is 5% of the amount being sent (a minimum of £0.99 and a maximum of £2.99). Then, there’s an additional 3% charge on the currency exchange that senders are liable for. We explore these fees in a comparison table below, using a clear example. 

Tap’s money transfer solution

Tap is a fully regulated fintech platform, offering a similar money-sending service, streamlining the process of converting currency and sending funds abroad. From the app, these funds can be sent to any bank account, whether an individual, a municipality bill, or a business account. 

Whether you’re sending funds to a friend overseas for their birthday or paying an electricity bill from your holiday villa, Tap provides a secure and fool-proof transfer option. 

When your transaction involves a change in currency, there will be a small charge determined by the account that the sender holds. Note that at Tap there are three tiers of accounts: the standard account, the Black account, and the Titanium option. You can learn more about the Tap accounts and how they work here. 

Based on the three account options, the following fees will be incurred when sending money that requires a currency conversion:

Standard: €2.00 (+ exchange markup of 1.5%)

Black: €1.00 (+ exchange markup of 1%)

Titanium: Free of charge with an exchange markup of 0.6%

Sending money abroad fee comparison: PayPal vs Tap 

Taking these fees into account, let’s compare expenses. 

*based on the current exchange rate, prices fixed in Euros as stated in the paragraph above. 

Should you send GBP from your Tap GBP wallet to a GBP bank account, the exchange markup fee is wavered, costing €0 - €2 depending on your account. This remains true no matter where in the world you might be. 

For example, if you’re sending funds from Spain to your British municipality, you can select to send GBP from your Tap wallet. 

Tap2Tap payment solution

With the Tap2Tap feature, you can enjoy fee-free and limitless money transfers, offering instant and secure transactions without any restrictions. The real-time payment network supports both crypto and fiat currencies, that’s GBP, EUR, USD, and 40+ cryptocurrencies. All you need to do is have a positive balance and the recipient must simply have an account. 

When using this service but changing currencies, there is a fee involved, which we’ll clearly outline below. 

For example:

Say you want to send ￡50 to your mom for Mother’s Day. If you both have Tap accounts, this transaction is free of charge. You simply need to have the available balance and execute the transaction using the Tap2Tap feature. 

If your mom lived outside the country and required a different currency, Euros for example, you can still send her the money for a small fee, used to execute the currency conversion. This fee structure is determined by the Tap account that you have, either Standard, Black or Titanium. 

How to use the Tap2Tap feature

Making use of Tap’s free transactions is easy. All you need to do is create an account and load the currencies you wish to use. In order to send the instant payments, the recipient of the funds must also have a Tap account. 

In order to open a Tap account, you and your recipient will need to:

1. Download the Tap app
2. Create an account
3. Complete the KYC identity verification process

You will then need to load your account with EUR or GBP, or one of the over 40 different cryptocurrencies. Then simply open the wallet you wish to transfer the funds of, select Send, and choose the relevant option. 

Final thoughts

In conclusion, PayPal Friends and Family provides a convenient way to send money to loved ones, but it's essential to be aware of the associated fees and limitations. While it offers fee-free transactions within the UK, international transfers and debit/credit card payments incur charges. Additionally, the lack of buyer and seller protections makes it best suited for casual, non-commercial transactions. 

To take money transfers to the next level, Tap offers fee-free and limitless transactions within the same currency, supporting both crypto and fiat currencies, and also offers cost-effective transactions when converting currencies. By making informed choices and utilising the Tap app, users can enjoy seamless and economical money transfers.

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References:

1. PayPal: What's the difference between Friends and Family or Goods and Services
2. PayPal fees
3. Tap Connect Network, please read alongside the Terms and Conditions
4. Tap account options
5. All of the above is subject to customers’ passing an identity verification process.

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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 employed by these 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 organization's 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 skepticism 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 can get creative to try tricking 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 & 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 authorizing 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 unauthorized 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 the fraudster already possesses about 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 authorize the payment. Unfortunately, when you authorize the payment within the application, you're effectively granting permission for the funds to be debited from your account.

‍How criminal 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 unauthorized party.

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

This reveals the ingenuity and persistence of these criminals in devising strategies to navigate such complex safeguards. Maintaining constant vigilance is paramount to counter these nefarious actors, alongside a commitment to education and awareness about their evolving tactics. Knowledge is indeed your best defense.

‍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 skeptic. 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 a a 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 best efforts, if you find yourself entangled in a fraudulent scenario - don’t despair. Whatever the hour, 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 our security section of our blog, where you will finds 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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Do you often find yourself struggling to make ends meet and wondering how you can start saving money from your paycheck? You're not alone! 🙌 Many of us face the challenge of breaking bad spending habits and learning to save for the future. But fear not, because we're here to help you unlock the secrets to successfully saving. 

In this insightful blog post, we'll explore effective tips and recommendations to maximize your hard-earned cash. From practical strategies to smart saving habits and automating your savings, we've got you covered! Whether you're a financial novice or already on your way to fiscal greatness, these positive payday tips will set you on a path toward financial success, no matter what job you have.

So, if you're ready to take control of your finances and make every penny count, read on as we delve into the world of salary saving and provide you with useful tips to start making the most out of your paycheck. After all, you can't put a price on financial freedom.

Introducing the 50/30/20 Rule: Your budgeting cheat sheet 

If you've been staring at your bank balance, wondering where all your hard-earned money goes, fret not! We've got a simple and effective solution for you – the 50/30/20 rule.

Here's how it works: You allocate 50% of your income towards necessities like rent, groceries, debt, and bills. We're talking about those everyday items you just can't live without. Then, you've got 30% earmarked for discretionary spending – the fun stuff like dining out or treating yourself to a little retail therapy. Finally, be a money-savvy superstar by directing 20% of your income into savings. Cha-ching!

By embracing this rule and its benefits, you'll achieve balance in managing your finances, without feeling overwhelmed. Plus, it's a flexible guideline, which means you can adjust the percentages to suit your unique financial circumstances.

Pay your bills right away

Paying your bills promptly is key to staying on top of your finances. Many people make the mistake of waiting until the end of the month to pay their bills, which can lead to unnecessary costs and even having to dip into their savings.

To avoid this, it's best to prioritize your bills and schedule them for the beginning of the month. Start by arranging your bills in order of importance – rent/mortgage, utilities, internet, etc. Make sure the most critical bills, like rent and child support, are paid around payday when you have enough funds available.

By managing your bills in this way, you'll avoid the stress of running out of money before your next paycheck and the additional charges that come with late payments.

Set up auto-transfers to avoid temptations

Want to save money without even thinking about it? Well, we've got a neat trick for you! All you need to do is set up automatic transfers into your savings account on payday.

This powerful strategy allows you to effortlessly save a predetermined amount of money every month. The beauty of automatic transfers is that they happen instantly, with no time for second thoughts or impulse buys.

By making this helpful habit a part of your financial routine, you can take charge of your savings goals and steadily grow your funds. It's a simple yet effective way to credit your savings account.

Define your saving goals

Saving money is always a great idea, but it becomes even more powerful when you have specific goals in mind. Whether you're aiming to buy a house, plan your dream vacation, or save for retirement, setting targets can help you stay focused on what truly matters to you.

Having a clear savings goal, or even multiple ones, gives you a sense of purpose and helps you resist the temptation of impulsive purchases. Instead of getting distracted by small expenses, you'll keep your eye on the bigger picture every payday.

So take a moment to think about your goals and start setting up savings targets that will guide you on your financial journey.

Enjoy the occasional shopping splurge

Balance is essential when it comes to keeping your finances in shape. Just like the importance of occasional treats in a diet, it's important to give yourself permission to splurge every now and then. Yes, you can definitely occasionally treat yourself to that delicious cupcake, it’s important to give yourself permission to have a bit of fun with your money. 

By completely depriving yourself of enjoying life's pleasures, you may end up going overboard later on and creating bigger financial issues for yourself.

Think of it this way - even if you are diligently saving money, it won't matter much if you're not allowing yourself to have some fun. You don't want to miss out on life's little joys just because you're focused solely on saving.

That's why it's important to incorporate moderate splurges into your monthly budget. There's absolutely no need to feel guilty about it. After all, everyone deserves to treat themselves and enjoy life. As long as you're still practicing other good financial habits and sticking to your overall saving goals, indulging in occasional splurges won't derail your progress.

A quick note of effective debt management

Debt management is crucial for anyone looking to improve their financial health and save money. Paying off debts allows individuals to free up their income, reduce interest payments, and gain greater financial freedom. From credit cards to mortgage, the sooner these are paid off the less interest one has to pay.

Effective debt management techniques include the debt snowball and debt avalanche methods. The snowball method involves paying off smaller debts first and then moving on to larger debts, providing motivation from quick wins. The avalanche method prioritizes high-interest debts first to minimize interest payments over time. Both strategies can help individuals regain control of their finances and achieve long-term debt freedom.

In conclusion

Saving money from your paycheck doesn't have to be a daunting task. By implementing simple strategies like the 50/30/20 rule, paying bills promptly, setting up automatic transfers, defining saving goals, and allowing yourself the occasional splurge, you can take control of your finances and set yourself up for financial success. 

Remember, it's all about finding that balance between saving for the future and enjoying life's little pleasures. So go ahead, start implementing these tips, and watch your savings grow while still enjoying the journey. You've got this! ✨

It's 2023 and you've decided to get involved in the crypto industry and find out what the fuss is all about. You've made a smart choice, and we're pleased to welcome you. In this step-by-step guide, we'll be showing you an overview of how to perform the following tasks:

• Create an account
• Deposit funds
• Buy Bitcoin, Ethereum or any other cryptocurrency
• Sell a cryptocurrency
• Withdrawal funds

Investing in digital currencies can feel daunting at first, but once you've made your first purchase, transaction, or sale, you'll see that using cryptocurrencies is simpler than what one might expect. Be sure to keep an eye on market prices, as volatility in the crypto industry can go through waves, and educate yourself on the coins that you wish to purchase. Whether you're a trader/investor in the UK, EU, EEA, or Australia, everyone can gain access to the crypto markets through the Tap mobile app.

In this article, we're going to show you the ropes, guide you through the process and explain step-by-step how to gain the skills to successfully operate in the crypto space and increase your investment portfolio. Whether you've traded on traditional stock markets before or not, we're going to show in a simple and easy-to-digest manner, no previous trading experience is necessary.

Step 1: create an account

The first and most important decision to make before buying cryptocurrencies is determining where to buy them from. With plenty of options available on the market and plenty more news stories about them, it's imperative that you select a trustworthy and reliable source.

Tap mobile app ticks these boxes, and proves so by being fully licensed and regulated by the Gibraltar Financial Services Commission. The platform has over 130,000 registered users, at the time of writing, operates in 28 countries across the globe, and has been nominated multiple times for PAY360 Awards (previously the Emerging Payments Awards). 

To create an account on Tap, simply follow these steps:

1. Download the Tap mobile app from either the Apple or Google Play store.
2. Create an account by filling in the relevant information. If you make a mistake simply go back and alter it before moving to the next step.
3. Once the account is set up you will be asked to complete the KYC / identity verification process. Simply follow the onscreen prompts and submit the required information. 
4. You will receive an email confirmation once your account is all setup. 
   

Step 2: deposit funds

In order to buy cryptocurrency through the Tap app, you will need to deposit funds. This can be done in both crypto and fiat currencies, however, we will focus on the fiat deposits today. 

1. Select the Cash wallet under Assets. 
2. Select the fiat currency you would like to deposit, your options are US dollars, Pound Sterling, or Euros. 
3. We're selecting GBP, which will open the wallet and offer you the option to choose from a debit card or bank transfer. 
4. Fill in the relevant information and perform the transaction. 
5. Once the funds have cleared they will appear in the relevant Cash wallet. 

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Step 3: Buy Bitcoin, Ethereum, or any other cryptocurrency

Now for the exciting part! It's time to buy digital currency. For the sake of this tutorial, we're going to show you how to buy Bitcoin, however, the process is consistent across all cryptocurrencies. 

1. Under the Assets section, select Crypto.
2. Choose the cryptocurrency you would like to purchase. 
3. Once in the crypto wallet, select the blue Option button and then select Buy. 
4. You'll be given the option to decide how to pay, simply scroll to the bottom and select Pound Sterling (or the fiat currency that you deposited).
5. Enter the amount that you would like to purchase.
6. Select the Confirm Trade button and enter your passcode.
7. Once the transaction is completed, the funds will appear in your Bitcoin wallet. 

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Step 4: Sell A Cryptocurrency

Now that you're familiar with how to buy crypto, it's high time you learned how to sell. 

1. To sell Bitcoin (or any other cryptocurrency), go to the relevant wallet from Crypto under Assets on the homepage. 
2. Select the blue Options button, and then choose the Sell option. 
3. From here you can decide whether you'd like to sell the cryptocurrency for another currency or for a fiat currency. In this example, we'll sell BTC for GBP. 
4. Select the Pound Sterling option and enter the amount of BTC you'd like to sell.
5. Proceed with Confirm Trade. 
6. Enter your passcode and wait for the transaction to take place. 
7. The funds will then be available in your Cash GBP wallet.

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Step 5: Withdrawal Funds

Completing the final process in this step-by-step guide, we're going to explain how to withdraw funds. You have a number of options here as the Tap app allows users to pay bills directly from the app using available funds. Alternatively, you can withdraw the funds to your own bank account.

1. From the home screen, select Cash under Assets.
2. Select the wallet from which you would like to withdraw funds. 
3. Choose the Send to Bank Account option and add a Beneficiary by clicking the blue plus button. 
4. Select the relevant option (to myself, to another person, to a business) and proceed by entering the banking details.

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Tap into a brighter future with crypto

On top of the simple and easy-to-use app, Tap also offers highly secure wallet solutions that are integrated into your account from the get-go. From the app, you can securely store and manage a wide range of cryptocurrencies from one convenient location. 

Bitcoin 101

Here are several frequently asked questions regarding Bitcoin, the first cryptocurrency to come into existence.

How does Bitcoin work?

Bitcoin uses blockchain technology to maintain and operate the network. Instead of a bank or government entity in charge, the Bitcoin network operates by using a number of computers, known as nodes, interconnected with one another through blockchain technology.

These nodes use computing power to execute transactions and then store the information on the blockchain, in a transparent, immutable manner that allows anyone, anywhere, at any time to observe.

Where do Bitcoins come from?

Bitcoins enter circulation when transactions are executed. Say one person sends another person Bitcoin, once the miner confirms and executes the transaction the miner will receive a reward for the computing power used, in the form of newly minted Bitcoin. This is where new Bitcoins come from.

What are the downsides of Bitcoin?

Bitcoin has for a long time been viewed as a risky asset, however, over the years it has proven to deliver impressive returns and is responsible for changing the global financial landscape. While Bitcoin has been celebrated for its transformative potential to provide financial freedom, there are still risks involved and one should never invest more than they're willing to lose. By entering the market at the wrong time one can lose money.

Where can I buy Bitcoin?

You can buy Bitcoin and a number of other cryptocurrencies directly through the Tap mobile app. Simply create an account, complete the identity verification process and load your account to buy cryptocurrencies.

Where can I sell Bitcoin?

Users who wish to sell Bitcoin can also do so through the Tap mobile app. Simply select the cryptocurrency you would like to sell and confirm the order. You will need to have a sufficient balance in the relevant wallet at the time of executing the sale.

What's the best Bitcoin wallet?

While there are plenty of different types of Bitcoin wallets, users can gain access to a wide range of crypto wallets through the fast and secure Tap app. Using one login instead of being responsible for managing private keys, Tap offers a secure, convenient and accessible way to store your cryptocurrency. 

Arbitrage is an alternative trading style where investors buy an asset on one marketplace and sell it on another for a higher price. Used across a wide range of asset classes in different markets, for example, the stock market like the New York Stock Exchange, financial markets, commodity trading, and cryptocurrencies. This style of trading can be very lucrative if you know what you're doing, but as always, there is a risk involved.

Below we explore what arbitrage is, what an arbitrage trade looks like, and what risks are involved.

What is arbitrage?

Arbitration is the process of profiting from differences in asset prices by simultaneously buying and selling the same asset in different markets. Arbitrage exists due to market inefficiencies, which it both exploits and resolves by bringing attention to the price difference. 

Traders that use this form of trading are called arbitrageurs and will typically look for arbitrage opportunities within one chosen asset class. Arbitrageurs look for unique circumstances usually across foreign markets that allow for the same goods to be traded for different prices. For instance, an arbitrageur will buy the same stock on the London Stock Exchange and sell it on the New York Stock Exchange and collect a profit.

While this sounds foolproof, the reality is that arbitrageurs require an in-depth knowledge of different markets, the skills required to spot arbitrage opportunities, and a keen understanding of the relevant news cycles. With notable risks involved, arbitrage trading is not advised for beginners. 

What are the risks involved with arbitrage trades?

While arbitrage trading may sound easy, it is quite complicated. Many things can go wrong if an investor does not fully understand the market and the variables involved before trying to make a quick profit.

Those with fewer resources and expertise are less likely to execute arbitrage because it requires a large amount of up-front cash as well as working knowledge of derivatives and margin trading. Arbitrage trading is not for every investor. Before you jump on any arbitrage opportunities, below are several risks involved in the practice:

Errors in market price differences

Considering that arbitrage trades are based on market inefficiencies, there is a high chance that the price could quickly take a turn, leaving the investor with a large amount of an asset. To overcome this unpredictability, arbitrageurs study financial markets, stay informed with the news, and build a deep understanding of the markets in which they invest. 

Fees and exchange rates

Brokerage fees, transaction costs and foreign exchange rates play a big role in unforeseen expenses when conducting arbitrage trading. These expenses should be factored into the cost calculations prior to taking on any arbitrage opportunities in order to best understand what you're getting into. 

Timing

Possibly the most crucial element to this trading technique, timing needs to be well calculated as it plays a role in whether you catch or miss the price discrepancies and ultimately profit from your trades. 

How does one get into arbitrage trading?

As arbitrage trading involved trading between international markets, the first place to start is by thoroughly monitoring and researching international markets and news. In doing so, the arbitrageur will look for any discrepancies in asset prices across the markets, and pinpoint a precise time to buy and sell the asset across the different markets. This is done at the same time so as not to miss out on price opportunities and be left holding onto an asset. 

An example of arbitrage

To assist you in better understanding what is arbitrage, let's take a look at an example of an arbitrage trade. Say you have your eye on a stock that is traded on both the London Stock Exchange and Tokyo Stock Exchange (TYO). From monitoring the price fluctuations you pinpoint the perfect moment to execute a buy-sell trades. Let's say you're looking at stocks in an automotive company as it's valued at $100 on the LSE and $75 on the TYO (obviously priced in their respective currencies).

Taking advantage of the price discrepancy, time difference and fluctuating circumstances of each market, you buy the cheaper version of the stock and simultaneously sell it on the higher-valued exchange. 

While the price discrepancy indicates profits of $25 per share bought and sold, the reality is that there will also be discrepancies in the currencies used and the fees payable for conducting these trades. The more shares you buy the higher your profits will be, so ensure that you calculate the earning potential before investing a large amount of capital. 

Should I get into arbitrage trading?

While the opportunity for profits sounds great, there is a lot of research and calculations required in order to be successful in this field. As with all investment strategies and trading techniques, arbitrage is no exception to the amount of risk involved. If you're willing to do the work and put in the hours, arbitrage trading could work in your favor. 

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