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In recent years, cryptocurrency, and therefore cryptocurrency exchanges, have firmly established themselves in the global financial market. As they become increasingly popular, many concerns have been raised over the regulation of these entities, and how they are preventing illicit monetary activity from taking place. 

In an attempt to crack down on funds being illegally moved, exchanges are required to implement KYC (Know Your Customer) and AML (anti-money laundering) policies. Regulatory bodies are working to build legal frameworks for the industry, in an attempt to fight crime conducted using blockchain technology. 

The biggest challenge for these regulatory bodies is to find a solution that doesn't hamper the innovative qualities of cryptocurrencies. 

In the UK there is the Financial Conduct Authority, a financial regulatory body that operates outside of the UK government. In 2020, the FCA required every company participating in any crypto activity in the sector to comply with its Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 policy (the 'MLR's). This obligation requires crypto service providers to complete the necessary registration and infrastructural requirements.

What is AML in crypto?

AML stands for anti-money laundering and involves protocols that ensure that every transaction can be tied to an identity, thus providing greater transparency. This ensures that if any suspicious activity is flagged, the origins and/or destination of the funds can be confirmed on the platform.

Due to the anonymous, or more accurately pseudonymous, nature of cryptocurrencies, many believe that it provides an easy opportunity for ill actors to engage in money laundering. Money laundering is the act of changing large amounts of illicit income into a legitimate avenue, the money is "laundered" so as to appear clean.

While cryptocurrencies seemingly provide a perfect platform for money laundering due to the lack of central authority or third parties, AML processes are implemented on exchanges to stop this activity in its tracks. 

What are the risks hindering AML practices?

The first risk that challenges AML practices is privacy coins, cryptocurrencies designed to conceal transactions and the relevant information attached to them. Platforms like Monero offer users the opportunity to send funds with no record of the transaction taking place. 

The data associated with the transactions like the sender, receiver and amount sent are encrypted and often broken up when stored on the blockchain to ensure they are untraceable. 

The second risk is coin join platforms that mix cryptocurrency transactions, hiding the origin and destination of the funds. These platforms essentially provide a service that can make ordinary cryptocurrencies anonymous. 

While cryptocurrencies have their benefits, there are a number of challenges they pose to regulatory bodies, AML and CFT (Combating the Financing of Terrorism) intentions:

• The anonymity they can provide
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• Opportunity for gaps when transacting cross-border transactions
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• Absence of one central authority to ensure compliance
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• The limited scope of identity verification processes

Differentiating between illicit activity and investors just wanting to safeguard their investments is a tricky business. Bad actors might make use of paper wallets to hide funds and keep them secret, while an investor might make use of a paper wallet in order to protect their funds against theft. 

AML in crypto exchanges

Despite the challenges it faces, AML has proven to be valuable in cracking down on illegal activity conducted on crypto exchanges. 

In July, $1.45 billion worth of illegal cross-border crypto transactions were traced back to 33 individuals on the South Korean exchange, Bithump. The platform quickly banned all foreign transactions, requiring a mobile KYC verification, and increased the KYC requirements so as to align with the country's AML regulations. 

Bitcoin ATMs, a notorious option for mixing funds, have come together to form the Cryptocurrency Compliance Cooperative (CCC). This operation calls for cash-based cryptocurrency services, financial institutions, and regulators to participate in building universal compliance factors. 

Does AML help or hinder the crypto market?

While AML tends to go against the decentralized nature of cryptocurrencies, the crypto community actively welcomes these regulatory efforts as it drives more trust and interest in the market on top of innovation and adoption. For example, an institution or retail investor is more likely to invest in a regulated asset than in a lawless, anything-goes market. 

Shiba Inu (SHIB) and Dogecoin (DOGE) are both dog-themed meme tokens, and ironically both hold a place in the top 15 biggest cryptocurrencies by market cap. Typically meme tokens don't hold too much value when it comes to utility within the crypto space, however, financial experts have pointed out that as the investment thesis has changed surrounding meme tokens these two projects have experienced impressive growth and success. But who comes out on top in this crypto dogfight spurred by internet memes?

Exploring Dogecoin (DOGE)

Dogecoin calmly entered the crypto scene in 2013 as a joke, based on a Shiba Inu meme that was circulating at the time (a Japanese dog breed). Created by Billy Marcus and Jackson Palmer, the peer-to-peer cryptocurrency was allegedly created to poke fun at crypto investors who understood little about what they were investing in. The coin quickly grew a mass following but did little to prove its value in the space. 

However, in 2021 Dogecoin's popularity exploded thanks to social media and the support of Tesla CEO, Elon Musk. After claiming it to be his favourite coin on Twitter, even naming himself the Dogefather, Musk caused a wild increase in the DOGE price, hype, and far-spread interest (as well as speculation).

Dogecoin provides a fast medium of exchange and is used predominately as money for tipping content creators across various platforms and crowdfunding. Ultimately, Dogecoin has a reputation for being an accessible asset in the market.

Exploring Shiba Inu (SHIB)

Bursting on the scene in 2020, Shiba Inu positioned itself as an Ethereum-based rival to the original meme token. The project provides several use cases such as a decentralized exchange, an art incubator and hosts to other tokens (one of which was initially called Doge Killer). 

The platform was created by an anonymous entity, much like Bitcoin, that goes by the name of Ryoshi. After launching, Ryoshi donated 50% of the total SHIB supply to Vitalik Buterin, and whether this was meant to be a publicity stunt or not it certainly received a lot of attention. Buterin went on to donate 10% of his SHIB to a Covid relief fund in India and burned the remaining amount. 

In October 2021 following a possible Robinhood listing the SHIB price soared and for the first time overtook Dogecoin in value. Once the selling spree calmed down the price corrected.‍

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How is Shiba Inu connected to Dogecoin?

While we outline the specifics of their similarities in the article below, the answer to this question is that there is no link between the two. Each network is built on its own platform (Shiba Inu using Ethereum as a base) and are not intertwined nor compatible. They are essentially competitors in the crypto space, each providing a platform and use cases separate from one another.
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Dogecoin vs Shiba Inu Similarities

While the obvious similarity in this article is that these coins are both meme-based, there are two other core similarities that these coins share that is seen less frequently in the crypto space. 

Consensus Model

Both cryptocurrencies currently use a Proof-of-Work consensus algorithm, requiring miners to solve computational problems the fastest in order to validate transactions. Dogecoin is hard forked off the Litecoin network while Shiba Inu is built on top of Ethereum's blockchain. However, in the coming months, this will change as Ethereum moves toward a Proof-of-Stake consensus. 

Strong Social Media Presence And Followings

Both these coins have active and loyal followings and have done well to build such strong communities. Both provide easy entry points into the market, an excellent way of diversifying one's portfolio with their low costs. Both coins also played a role in bringing crypto to the mainstream in a "fun" light, with their active community members to thank. 

Elon Musk

As a bonus similarity, both these meme tokens have greatly benefited from the actions of Elon Musk. While he is a strong fan of Dogecoin, he recently sent the price of Shiba Inu soaring after posting a picture of his Shiba Inu puppy. In part, this contributed to the SHIB price reaching its all-time high.‍

Dogecoin vs Shiba Inu Differences

Of course, while they're both wildly popular and among the biggest cryptocurrencies based on market cap, they too have differences.

Token Type

While Dogecoin was built on its own blockchain, Shiba Inu was created on Ethereum as an ERC-20 token. This increases the tokens versability as it is compatible with all ERC-20 functions, such as wallets, smart contracts, decentralized exchanges, market places and more. 

Tokenomics

An important aspect to look at, these two differ substantially. Dogecoin was created to have an infinite supply with a total of 5 billion new DOGE entering the market each year. Due to its fixed reward rate, the coin's inflation rates are expected to decrease over time making it deflationary in the long term. 

Shiba Inu, however, has a fixed supply of 1 quadrillion SHIB with around 549 trillion SHIB currently in circulation. The project has also implemented a burning mechanism into its operations, burning small portions of SHIB each time the cryptocurrency is purchased (via the transaction fee). As more coins are purchased the burning mechanism will decrease the supply, making the coin scarcer and increasing value. 

Utility

Dogecoin is a peer to peer payment system providing a medium of exchange. Shiba Inu on the other hand can be used in smart contracts and DeFi products. The project also provides a decentralized exchange called Shibaswap, as well as two other tokens, LEASH and BONE. On top of that, the platform also offers users access to liquidity pools and staking services. 

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The Dog Fight Continues

As mentioned above both these coins have impressive communities behind them and have their own use cases. With many people asking where do experts predict Shiba Inu will go next and how high can Dogecoin go, the truth is that no one can say for certain. Each investor can decide for themselves which is better suited to their trading needs and enter the market accordingly. If you'd like to onboard Dogecoin or Shiba Inu you can do so securely and conveniently through the Tap app today. 

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Anyone that has been watching the markets closely for the last several months will have noticed a definite chill in the air (not to mention a decline in their money). As the bears become more prominent, weak hands are losing faith and exiting the market. Why are we talking about a cryptocurrency winter now? Before we firmly declare this to be a crypto winter, let's explore the recent dips of the digital asset market and what previous crypto winters have detailed. 

What is a cryptocurrency winter?

A cryptocurrency winter is a term used in the crypto market to describe a long term bear market. A bear market is classified as a declining market where shares have fallen below 20%. Investors typically call it a crypto winter when the markets have struggled to reclaim highs previously witnessed (usually right before the winter set in). Does that mean cryptocurrency investors should take out their snow shoes? Metaphorically, yes. And by snow shoes we mean thick skin and strong hands.

The recent market climate (five month period).

Since reaching its most recent all-time high, Bitcoin has dropped over 40%. After reaching highs of $68,789.63 in November 2021, Bitcoin has gone through a red-tainted slump reaching lows of $33,710 in late January and since recovering to just under the $40,000 mark. 

Ethereum, the second-biggest cryptocurrency, has experienced a similar fate, dropping from highs of $4,891 in November 2021 to lows of $2,211 in late January. Ethereum has since corrected to the $2,800 region as it generates interest in its move to a Proof-of-Stake consensus. 

It's no secret that the stock markets have suffered a similar fate in recent months, with seemingly only gold remaining unscathed. Experts have suggested in various articles that the uncertainty in global politics is playing a considerable role in the decline of various markets and businesses.

Buterin confirms a crypto winter

As touched on above, the current ongoing war between Russia & Ukraine has played a large role in driving investors' uncertainty as prices bounce through the highly volatile period. While we've seen an increase in trading volume, there have also been strong price swings.

This paired with the declining prices has led to a downfall in companies and traders entering the market, further fuelling the problem. This has become known in the industry as a crypto winter. 

Ethereum founder, Vitalik Buterin, recently confirmed the case, although he also highlighted the positives, particularly for those on the development side. He pointed out that crypto winters offer a period of rejuvenation for the industry, allowing unsustainable projects to fall away. 

"They welcome the bear market because when there are these long periods of prices moving up by huge amounts as it does - it does obviously make a lot of people happy - but it does also tend to invite a lot of very short-term speculative attention."

He added that it encompasses a "time when a lot of those applications fall away and you can see which projects are actually long-term sustainable, like both in their models and in their teams and their people." If one factors the development side of things in, we can bank on the industry coming out stronger after this period.

Unwrapping the previous crypto winter

The last crypto winter we experienced took place in 2018 after the highs of December 2017 (when Bitcoin almost reached $20,000). This bear market continued until mid-2019 before it started showing signs of recovery. It wasn't until Bitcoin defied the odds in 2020 and overcame the pandemic that it soared to higher heights, almost triple that of the previous all-time high. 

While losing 40% of its value this season sounds rough, the previous crypto winter saw losses of 84%. As cryptocurrencies further emerge themselves into the mainstream financial markets, many believe it is only a matter of time before the prices enter the green again. Time also tends to play a regulator role when it comes to changing crypto seasons. 

Bitcoin's four year cycle theory

There is a growing belief in the industry that Bitcoin has a definitive four-year cycle of prices rising and falling. This aligns with the halving mechanism which takes effect every 210,000 blocks, or roughly every four years. 

The halving, the last of which took place in May 2020, halves the rewards given to miners for verifying transactions and effectively halves the number of new coins entering circulation. History has shown that a bull run succeeds these events, roughly twelve to eighteen months later. 

Surviving the chill

While many can agree that the crypto winter is upon us, there is no saying how long it might last, or how low it may go. Analysts suggest that traders use the time to sharpen their investment strategies and implement plans of action that keep risk to a minimum. As blockchain and cryptocurrencies have already passed a significant milestone in their adoption, there is no stopping it now. For any traders concerned over the crypto winter, fear not. It will pass. 

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After weeks of trading sideways, Bitcoin and Ethereum are showing renewed strength and a surge in upward momentum, taking the market in a perfect storm yet again.

Bitcoin has experienced a significant price reversal over the past several weeks, rising from below $30,000 to over $46,000 in value on august the 11th.

BTC gained almost 19% in the past week making it its strongest monthly performance since March closely followed by 18.5% in July. Meanwhile, Ethereum (ETH) is trading around $3,100, having posted a gain of 11.5%last month, its largest increase in three months. As Ethereum's rally accelerates and bitcoin's advances have slowed, some on the institutional side speculate it could overtake Bitcoin as the world's largest cryptocurrency by value.

Clearly, the crypto bulls do not go on holiday.

The world's total cryptocurrency market capitalization peaked at over $2 trillion Wednesday afternoon for the first time in about three months.

Over the last year, there has been an increase in investment appetite for cryptocurrencies due to crypto trading volume growth, fintech company crypto offerings allowing you to acquire crypto with a click from your phone.

AJ Bell's research suggests that more adults in the United Kingdom invested in crypto than stocks in the last year: 7% of the population versus 5%for stocks. Data show that 71% of these investors said that they made a profit from their investments, while only 12% admitted losing money.

Retail clients aren't the only ones interested in the recent cryptocurrency mania. Institutions and hedge funds managers are also entering the game. It seems that the world's gone crypto crazy.

More institutions are also introducing cryptocurrency products for high-net-worth clients, including JP Morgan and Wells Fargo. A recent report by the AIMA in partnership with PWC report that 47% of traditional hedge fund managers surveyed representing $180billion in assets under management (AuM) are already investing or looking into investments in crypto. Benefit-wise, the median crypto hedge fund returned 128%in 2020 despite the COVID-19 pandemic which generated the economic downturn.

As a result of the lack of laws and regulations in place, some major financial institutions are reluctant to involve themselves. Some other traditional asset managers often shy away from cryptocurrency investing due to its volatile nature, lack of appropriate infrastructure, as well as the recentness of the industry. However, Increasing regulation and interest in the digital currency industry could force traditional institutions to hop in, either through buying a stake in cryptocurrencies or launching their own cryptocurrency-tracking funds.

The alternative assets class of cryptocurrencies is becoming a driving force in the market. The price discovery for these digital currencies is different from traditional investments because it cannot be correlated with traditional sources of values, such as stocks or bonds. In spite of this distinction, crypto may provide diversification opportunities and an additional source for portfolio returns that are otherwise unavailable as yields decrease and the stock exchange might be unpredictable given the current economical downturns.

Though excitement is high for rally markets, anyone who wants to put their money in cryptocurrencies needs to be knowledgeable about the result of trading as cryptocurrencies are notoriously volatile and that education and experience are the key

It's 2024 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 a simple overview of how to complete the following:

• 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 expected. 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 USA, 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. No previous trading experience is necessary (stocks or crypto).

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.

The Tap mobile app ticks these boxes and proves so by being licensed and regulated by the Gibraltar Financial Services Commission. The platform has over 300,000 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:

• Download the Tap mobile app from either the Apple or Google Play store.
• 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.
• 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. 
• You will receive an email confirmation once your account is all set up. 

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. 

• Select the Cash option in the top horizontal menu.
• Select the fiat currency you would like to deposit, your options are US dollars, Pound Sterling, or Euros. 
• We're selecting GBP, then select one of the options: deposit or debit card top-up. 
• Fill in the relevant information and perform the transaction. 
• Once the funds have cleared they will appear in the relevant Cash wallet. 

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. 

• In the top horizontal menu, select Cryptocurrencies.
• Choose the cryptocurrency you would like to purchase. 
• Once in the crypto wallet, select the blue Buy button. 
• You'll be given the option to decide how to pay, simply scroll to the bottom and select Pound Sterling (or the crypto or fiat currency that you deposited).
• Enter the amount that you would like to purchase.
• Select the Execute Trade button.
• Once the transaction is completed, the funds will appear in your Bitcoin wallet. 

Step 4: Sell A Cryptocurrency

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

• To sell Bitcoin (or any other cryptocurrency), go to the relevant wallet in the Crypto section.
• Select the blue Sell button. 
• From here you can decide whether you'd like to sell the cryptocurrency for another cryptocurrency or for a fiat currency. In this example, we'll sell BTC for GBP. 
• Select the Pound Sterling option and enter the amount of BTC you'd like to sell.
• Proceed with the Execute Trade button.
• The funds will then be available in your Cash GBP wallet.

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 several options here as the Tap app allows users to withdraw funds directly into their bank account, instantly send funds to other Tap users, or withdraw cryptocurrencies.

• In the top horizontal menu, select Cash.
• Choose the Withdraw button, located underneath your balance. 
• Select the option most preferable to you: Instant, to a Tap user; bank transfer; Crypto withdrawal. 
• Follow the relevant instructions and select Execute Trade once complete. 

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. With Tap, you can securely store and manage a wide range of cryptocurrencies from one convenient location, and even more easily spend them using the Tap card.

Bitcoin 101

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

Many investors have made a lot of money through the stock markets, however, in recent years a new asset class has entered the scene. Not just any asset class, the best performing asset in the last decade. While conservative investors have steered clear, many investors have incorporated cryptocurrencies into their investment portfolios. 

In this article, we explore the differences between crypto vs stocks. While investments are driven by profits, understanding the difference between the two and what each one is is arguably fundamental to making any money from them. 

What Are Stocks? 

Stock, also referred to as equity or shares, is a financial product sold by companies that offer a percentage of ownership in the company. These "certificates of ownership" entitle the holder to dividends from the company's market performance. 

Stock in a company holds equal risk and reward. Should the company have a bad year, the stock price will reflect this with a decline in the unit price, but should it perform very well the price will increase. The profits are shared through a simple transaction.

These financial products are legally considered securities and are used by businesses or governments to raise capital from the market, offering the holder part ownership in the company selling the stock. Stocks are traded on authorised stock exchanges, of which there are over 60 around the world. The most popular are NASDAQ and the New York Stock Exchange (NYSE) which manage the sales of stocks relevant to that platform.

What Are Cryptocurrencies?

Cryptocurrencies are digital assets native to blockchain platforms. The first cryptocurrency launched in 2009 and provided an alternative cash system that allowed users to transact and store their funds without the authorisation of a third party. As a solution to the global financial crisis plaguing the world at the time, Bitcoin offered a decentralized solution to people taking control of their own money.

Following the launch of development-focused Ethereum several years later, cryptocurrencies started to offer solutions beyond just payment platforms. There are over 20,000 cryptocurrencies on the market today, ranging from utility tokens to governance tokens to meme tokens. 

Cryptocurrencies are defined as using blockchain technology to facilitate and maintain the network. Blockchain ensures that all transactions are recorded in a public ledger for anyone to see and are immutable. They also use cryptography to ensure the security of the network established through an elaborate means of information.

Cryptocurrencies can be traded on the following platforms, each incurring its own fees:

• peer-to-peer exchanges, where cryptocurrencies are directly traded between two users
• Decentralized exchanges, largely unregulated exchanges where there is no central authority 
• Centralized exchanges, operated as a business with an entity in charge and managing operations as well as regulatory obligations

Cryptocurrencies are largely considered to be "digital commodities" around the world, however, most countries are in the process of building a legal framework to better identify and regulate the new asset class. 

Due to their incredible growth and price gains over the last decade, cryptocurrencies have become a widely popular investment vehicle for both retail and institutional investors. 

Do You Have to Pay Taxes on Cryptocurrency?

As is the case with profits gained from any investment, individuals are required to pay taxes on their crypto earnings. While this remains largely unregulated, most countries have created a legal framework that requires users to pay on any profits made. These levies are then paid to the government and contribute to the functioning of the country. The onus lies on the individual to establish what these laws are and adhere to them.

What Are The Difference Between Crypto vs Stocks

Below we flesh out the differences between these two financial products to build a better understanding of the two. We'll be looking at:

Ownership 

Arguably the biggest difference between crypto and stocks is the ownership rights. Stock provides the holder with ownership rights vehicle cryptocurrency typically doesn't (in the traditional financial ownership sense at least). 

Cryptocurrencies are designed in such a way that their decentralized nature ensures that no one owns the network. Some cryptocurrencies provide governance rights that allow the holders to vote on network changes and have a say in the development of the project. 

Risk vs reward 

The cryptocurrency market is renowned for being more volatile providing considerably higher risks and rewards when compared to the stock markets. 

In a 5 year comparison, at the time of writing, NASDAQ has seen 167% growth while Bitcoin has seen 3,574% growth. 

Liquidity

Stock markets typically hold more liquidity as most stocks can be traded across exchanges and quickly converted to cash. Cryptocurrencies, particularly the smaller capped coins, hold less liquidity, although the bigger ones like Bitcoin and Ethereum can easily be traded on most exchanges. Bigger crypto exchanges have more liquidity due to the higher trade volumes on the platform. 

Regulation

Another big difference between crypto and stocks is the regulation aspect. While all stock exchanges have at least one government entity regulating all activity on the platforms, cryptocurrency is largely unregulated around the world.

Regulation in the crypto space is a developing topic as many countries are working to legally define the asset and implement it into their financial system. Having said that, most centralized exchanges are regulated, complying with laws in the countries in which they operate. For safe crypto trading ensure the platform you're using is regulated.

Investment Reasons

While both stocks and cryptocurrencies are largely invested in for profit-seeking reasons, the alternative motivators vary substantially. Some investors also invest in stocks due to the initiatives that the company supports. 

Cryptocurrencies on the other hand offer several more alternative investment motivators, including:

• Getting involved in the blockchain and dapp space
• Making use of its decentralized nature and lack of centralized authority
• Exploring a more discreet means of transacting and storing value
• Supporting an innovative product that offers a high-impact solution

In Conclusion

Stocks are a more popular and regulated investment vehicle while cryptocurrencies offer a higher risk vs reward opportunity. While stocks are considered securities are largely regulated, cryptocurrencies offer higher use case potential and have proven to have higher ROIs.

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