Since stablecoins emerged in the crypto sphere, many have questioned their legitimacy. While cryptocurrencies are perhaps more frequently used as a tool for value storage rather than a means of transaction, coins (or any financial products) that cannot appreciate in value certainly raise several questions. So why have stablecoins become so popular among businesses and individuals alike? Below we're taking a look at their use cases and reporting on whether they're the safe haven of crypto. 

What are stablecoins?

Before we continue, let's clarify what stablecoins are. These types of cryptocurrencies are "stable assets" that have their value pegged to a fiat currency or commodity. This might include the US dollar, euros, the price of gold or even other cryptocurrencies. So while Bitcoin (BTC) and Ethereum (ETH) are subject to bouts of volatility, stablecoins remain consistent with the price of the money they are pegged to.

Stablecoins are not to be confused with CBDCs (central bank digital currencies) which are operated by a government-controlled organisation, usually a country's national bank. Stablecoins are controlled by a company and utilise blockchain technology to facilitate transactions, store the relevant data and maintain security.

Stablecoins' economic policy ensures that they maintain their value through the use of smart contracts, algorithms and reserves. For each Tether in circulation, for example, one US dollar needs to be held in a reserve account. These types of cryptocurrency tokens provide a reliable and non-volatile means of making payments with the companies issuing them regulating the circulating supply.

What value do stablecoins provide?

While many might not initially see that value in a fiat-pegged cryptocurrency, stablecoins are actually hugely useful in a largely volatile market. Let the current top 5 biggest cryptocurrencies based on market cap in the industry be an indication, with two of the five being stablecoins. 

As stablecoins utilise blockchain technology, the coins naturally inherit all the characteristics of seamless and fast digital transactions (as well as transparency when it comes to transactions). Much like traditional digital assets, stablecoins can be transferred across borders instantly, a much faster and cheaper alternative to using fiat currencies and without the chance of price swings. Users, whether consumers or businesses, are able to buy, store and sell stablecoins as they would any other cryptocurrency on the market.

For example, should you wish to pay a business in another country for services rendered or any other expense, it would prove to be much faster and cheaper to use a stablecoin than to send your local currency via traditional banking services. Stablecoins offer a much more streamlined means of completing the job.

Stablecoins also provide an entry into exchanges that don't work with fiat currencies, providing a reliable means of trading on those platforms. Stablecoins have come to be known as "risk-off" assets, giving newer traders a chance to "test" the markets without the volatility. 

This innovation in the blockchain space has opened many new markets to the use of cryptocurrencies, certainly more mainstream markets across a wide range of countries. As information regarding how they work spreads, more businesses have opened their mind to using them in everyday working life. Stablecoins have also become a popular option with users trading on DeFi (decentralised finance) platforms, providing a secure and efficient means of using the products.

Are stablecoins the safe haven of crypto?

In essence, yes. Since the advent of stablecoins (marked by the launch of Tether) in 2014, there has been a number of new stablecoins to emerge, resulting in more confidence in crypto markets. This has equated to more movement and trade volume, and a lower risk management sector.

So while one isn't going to make huge returns (if any) on stablecoins, they bring value to the market due to their stability and transaction ability. 

As stablecoins are used by traders to hedge against falling markets, they provide a safe haven for their digital funds until the markets return to normal levels. Businesses around the world use stablecoins as they provide a faster and cheaper means of settling bills, allowing them to harness the power of blockchain technology without the worry of prices rising or falling in a short space of time. 

Tap into stability

Whether you're considering accumulating stablecoins during periods of market volatility or looking to engage in transactions, acquiring stablecoins involves buying the assets through a cryptocurrency exchange. Always ensure that you choose a reputable platform and that it holds the necessary licenses to offer these services.

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In light of the recent boom of the decentralized finance (DeFi) realm, many fintech platforms are following suit, providing users the opportunity to earn interest on digital assets, however, with much more security. While DeFi platforms offer users (sometimes unachievable) high yields, fintech platforms are providing a more realistic and transparent service.

Programs called crypto earn allow users to invest their cryptocurrencies in a specific wallet on the platform and earn interest rates applicable to that specific currency. Similar to crypto staking where users lock their funds in a wallet or smart contract for a certain period of time.

Typically, each cryptocurrency will have a different interest rate, which is subject to fluctuations with market volatility. When prices rise, the APYs will rise and decrease alongside the price as well. 

These programs might be available on a crypto exchange and might be accompanied by fees and a lock-up period, so be sure to read the fine print before parting ways with your funds. 

How do these crypto earn platforms provide these returns?

This is an important question to ask before using a new platform. In light of the recent demise of the Celsius network, it became evident that the platform was making risky bets with investors’ money, which all came crashing down after TerraUSD collapsed. 

Be sure to read the fine print and understand how these platforms are providing your returns. If it’s through a string of risky investments, walk the other way. 

Who can participate in these yield programs?

Similar to a savings account, these crypto earn programs are available to anyone. However, most fintech platforms will require a KYC (Know Your Customer) verification. This is due to regulations in the industry and simply means that the platform is more reputable and reliable. 

How can one earn interest on crypto assets?

As mentioned above, you will need to find a reputable platform that offers these services. Look for a company that holds the right regulatory compliance, and ideally insurance to ensure that the platform is legitimate. 

How to open a crypto interest account

If you're interested in opening a crypto yield account you will first need to find a reputable platform on which to do so. As mentioned above, ensure that you read the fine print carefully, and that you only work with platforms that hold the neccesary licences. You will likely then need to create an account by entering the necessary information and completing a KYC verification process.

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Disclaimer: This article is intended for communication purposes only, you should not consider any such information, opinions, or other material as financial advice.

You’ve likely heard of a new trend in the crypto space where users can earn money from storing their crypto assets in certain wallets on specialized platforms. These are called Crypto Earn programs, and while they vary from platform to platform, they generally harbor the same process: you put funds into a crypto earn account, and you earn interest. Generating passive income of this nature might help you to reach your financial goals more quickly.

What is a crypto interest account?

In light of many traders losing money through uneducated or ill-advised attempts to trade crypto, the notion of hodling (holding funds for an extended period of time) has become an equally successful strategy. Working off of this concept, fintech platforms have recently started offering crypto traders access to Earn programs that reward users for depositing their crypto holdings into a specific wallet with regularly paid interest. These types of financial products can often be found on a crypto exchange.

These accounts, commonly known as crypto interest accounts, work in a similar way to regular bank accounts or savings accounts in that users can earn interest proportionate to the amount of money they hold in their account. 

Not only can crypto traders potentially earn money through the increasing value of a digital asset, but now they can also earn interest while they sleep. The crypto company providing this service should have adequate licenses in place and the correct authorizations from regulatory bodies.

What is the difference between crypto staking & crypto earn?

While we’ve covered what Crypto Earn is, let’s explore staking for a moment. Staking is the process of locking your funds in a blockchain network in order to assist in the network’s operations. This is only relevant to Proof of Stake networks such as Cardano (ADA), Polkadot (DOT), Polygon (MATIC), recently Ethereum (ETH), and several more. 

Through staking, users can earn rewards when they are selected to confirm transactions. It's worth noting that these typically come with a long lock up period, depending on the platform.

The bigger the stake you made, the more chance you have of being chosen to validate a new block and earning rewards. Similar to the Proof of Work mining process, validators get rewarded with the network’s cryptocurrency when they add a new block to the blockchain. 

The main difference between the two is that through Crypto Earn you can earn interest on your crypto (particularly on otherwise stagnant assets that are not from PoS networks) while staking involves users in the operating of the network. While staking rewards are typically higher, there are a number of other factors that make them less flexible.

What to look out for in crypto earn programs

The beauty of these programs is that you don’t need to invest more than you already have. You can use your pre-existing portfolio and simply transfer the funds to a platform that allows you to earn interest on your crypto. 

When choosing a reliable Earn program, there are a few things to consider:

• Fees

Some platforms will charge you fees to deposit and withdraw funds, be sure to research this prior to engaging in the program.

• Lock up period / Flexible Term

Lock-up period is a predetermined amounts of time that the funds need to remain in the account in order for you to earn interest on your digital assets. Typically, the longer that the funds remain in the account the more interest you will make. Some platforms might also offer higher interest rates for longer time periods. Ideally, a flexible plan is best, giving you access to your funds at all times.

• Varying Interest Rates

Some platforms will offer varying interest rates that remain relative to the market, meaning that when a coin's price fluctuates so too does the interest rate. When the crypto markets go through a slump, the interest rates will decrease proportionately. Be sure to check the interest rate relevant to the crypto you wish to use, as these typically vary from currency to currency.

• Minimum Amounts, Limits and Supported Coins‍

Be sure to check what the minimum and maximum amounts are that you can transfer into your Earn wallet. Staking typically requires a high minimum amount in order to participate so be sure to check this beforehand. You'll also want to check what coins the platform supports, for instance, if the platform only provides interest on stablecoins and you only have Bitcoin this might not be the platform for you.

• Choose The Right Platform

Ensure that you place your digital assets in a reputable company, ideally regulated with the correct licenses. You’ll also want to read the fine print in order to get a full understanding of all the rules when engaging in the activity.

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Closing thoughts

To reiterate the point above, if you decide to engage in any of the activities mentioned in this article, ensure that you do so through a reputable platform that holds the correct licences to provide such a service. If you are unsure, please consult a professional or financial advisor who can give you specialised advise.

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We are delighted to announce the listing and support of Lido (LDO) on Tap!

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

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

Lido's liquid staking service allows users to tap into the benefits of staking rewards without compromising their tokens' liquidity. Lido aims to empower users to put their staked assets to use, supporting a number of PoS cryptocurrencies. The platform offers a liquid staking solution that provides users with a system that allows them to earn rewards on staked coins while also receiving a tokenized version of the staked coins which can generate returns in other DeFi protocols.

The Lido DAO token (LDO) is an ERC-20 token, the native utility token to the Lido protocol used to reward users. The token has a total supply of 1 billion tokens and serves three primary functions.

The LDO token grants holders with governance rights in the operations of the Lido DAO, as well as the removal or addition of Lido node operators and helping with the management of fee parameters and distribution.

Get to know more about Lido (LDO) in our dedicated article here.

If the pandemic taught us one thing, it is to always be ready for a rainy day. As the world got flipped upside down, many people started exploring alternative ways of making money, whether driven to do so through economic uncertainty or simply due to having more time on their hands.

Using simple processes found on the internet, passive income became a leading way of making money while they sleep and has led to a rise in people becoming more financially literate and independent.

In this article, we explore the 6 best passive income ideas UK offering expert advice to help traders grow their wealth through merely a laptop or smartphone and at a minimal cost. No matter what business background one might have, earning a passive income requires minimal effort and zero job requirements, just a reliable product.

What is passive income?

Before we explore the 6 best passive income ideas UK, let's cover what is passive income, exactly? Passive income is the process of earning money and maintaining an income through minimal effort. This might include earning money through a business you're not actively involved in, rental income from property, or earning interest through various accounts and investments. The idea is that you effectively make money while you sleep, a perfect incentive.

How can I earn passive income? 6 of the most effective ideas

Ready to get in on the action? With the connectedness of the Internet (and Youtube), there is plenty of advice out there on how to build your wealth with minimal costs. In this article, we are dishing expert advice on how to start the passive income process to assist people with getting the financial independence ball rolling. 

Here are a number of leading options for earning a passive income in the United Kingdom:

• Earning interest on savings

Keep your savings in an interest-bearing account to ensure that your money is working for you even while you sleep. Typically these accounts allow users to access the funds within a certain time frame (i.e. 30-day account, 60-day account, etc).

• Take advantage of cashback offers

Plenty of credit cards and websites offer cashback rewards, start using them to generate points and cashback rewards on a daily basis. Users can then use these rewards and financial incentives to buy goods and services. Many banks also offer this service. Could you be rewarded for your everyday spending? You absolutely can.

• Rent out a space

If you have accommodation, a spare room, or even a parking space that you are not using consider renting out the property/space to start making money. Property is a leading means of earning a passive income.

• Make use of affiliate links

Many people make money through the use of affiliate links. Affiliate links are performance-based marketing programs that allow users to sign up to get a link that they can share with their following, essentially selling the product or service on the company's behalf. These affiliate links then generate a small amount every time someone uses that link to deposit money/make a purchase on the platform.

• Invest with peer-to-peer lending

Through a number of reputable companies, you can earn a passive income by depositing funds that can be used by an alternative person for a fee. Popular in the crypto space, particularly DeFi, peer-to-peer lending is becoming a more popular option among investors seeking to earn a passive income.

• Purchase dividend-yielding assets

Whether you are into stock markets or crypto, there are plenty of dividend-yielding assets/shares on the market that pay out at different payment intervals depending on the asset and return setup. Ensure that you invest in a reputable one through a trusted company.

Can I make passive Iincome through investing?

Absolutely, there are plenty of investment options when it comes to making passive income. Following the Covid-19 pandemic, there has been a significant shift from traditional investing to making a passive income through purchasing cryptocurrencies, using affiliate links, as well as a rise in researching passive income options through websites and blog content. While not every option is worth your time, there are plenty to choose from.

There are a number of investment avenues such as using dividend-yielding assets, various DeFi projects, as well as earning yield on savings and investments.

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Final thoughts

If you choose to engage in any investment activities ensure that you have the required knowledge, skills and/or advise to make informed decisions and minimise your risk. And always do so through reputable and regulatory-compliant platforms.

The Curve protocol and Curve DAO token form another innovative project to come from the DeFi movement and one that provides a particularly unique and well-designed concept. Improving on functionalities that DeFi platforms like Uniswap and Sushiswap have otherwise neglected, Curve focuses on providing a viable alternative solution to traditional financial platforms in the blockchain industry.  

The Curve Finance platform, launched in January 2020, later released a decentralized autonomous organization (DAO) alongside the Curve DAO token eight months later. CRV functions as the in-house token of the platform.  

What Is Curve DAO (CRV)?

The Curve platform, formally known as Curve Finance, provides traders with a decentralized exchange on which to swap digital assets. Curve aims to provide minimum price slippage between two tradable crypto assets by focusing on stablecoins or assets of similar value. Through an automated market maker (AMM) and focused smart contracts, the decentralized exchange is able to manage liquidity.  

While the platform can be compared to Uniswap, in reality, it has some key differences and a much higher amount of locked liquidity. The platform and its liquidity providers are more focused on stablecoins and other coins of that nature. CRV tokens fuel the network and are a tradable asset for crypto users.

The Curve DAO provides more decentralized governance to Curve's trading platform. The Curve protocol has grown into a well-respected financial asset within the DeFi ecosystem with its strong DeFi protocol.

Who created the Curve protocol?

The Curve platform was created by a Russian scientist with ample experience in the crypto industry. Michael Egorov both founded the platform and acts as its CEO. He previously co-founded a crypto business focused on building privacy-orientated protocols and infrastructure, NuCypher, in 2015, as well as LoanCoin, a decentralized bank and loans network.

As of August 2020, Egorov holds 71% of the governance tokens after locking up a large amount of CRV tokens in response to yearn.finance’s increasing voting power in the Curve network. In a statement made later, Egorov admitted to “overreacting”.  

How does Curve work?

Launched prior to Uniswap V2, Curve Finance operates similarly to the DeFi platform but has implemented some key differences. The decentralized exchange differentiates itself from the original AMM platform by innovating the liquidity pool trading structure and relevant smart contracts.

The Curve DAO trading platform is managed by a mathematical function called a bonding curve, which is designed to let cryptocurrencies trade for the best possible price amongst each other. Bonding curves are also used by other DeFi trading platforms, like Uniswap.

Due to the Curve DAO platform being primarily focused on stablecoins, its bonding curve is specifically focused on these pegged digital currencies and is able to trade a larger amount of stablecoins with less change in their relative prices in a liquidity pool.

Lending Pools

In order for the Curve DAO platform to operate, it requires a group of users who are willing to lock up their cryptocurrencies in order for them to be traded by others. The platform provides a return on their coins plus a portion of the fees from trades when incentivizing liquidity providers.

The platform manages the coins in the liquidity pools by making them more expensive or cheaper, based on their fluctuating amounts, thereby making them more attractive to buyers and sellers using the platform.

On Uniswap, liquidity pools are based strictly on predetermined trading pairs while on Curve DAO the liquidity pools comprise multiple assets. On Curve DAO, entire liquidity pools can also be used as an asset inside another liquidity pool.

How does a trader use the liquidity pools?

Once a trader adds liquidity to a specific pool, through stablecoins or other digital assets, the user will receive a token specific to that pool. 3pool is an example of one of the most popular liquidity pools on the Curve platform.  

While the platform is known to provide trading for stablecoins, it also supports mirrored assets such as renBTC and wBTC. These assets are both built on the Ethereum blockchain and track the price of Bitcoin in a typical derivatives fashion. Since the prices are close in value they can function in the same pool and be traded using the Curve DEX.

What is the Curve DAO token (CRV)?

The CRV token is the utility token and governance token of the Curve DAO platform, providing users with governance rights, an incentive structure for fee payments, as well as providing long-term rewards to liquidity providers. CRV tokens are awarded to users based on their liquidity commitment and length of ownership.  

The Curve DAO token was launched alongside the Curve DAO in August 2020. The maximum supply is 3.03 billion CRV tokens, with 62% of that being distributed to liquidity providers. The rest is allocated between employees (3%), and shareholders (30%), and a small percentage is kept for community reserves (5%). Employee and shareholder allocations work off of a two-year vesting schedule.  

At the time of writing, over 531 million CRV tokens are in circulation, roughly 16% of the total supply.  The market cap at the time was around $365 million, positioning the Curve DAO token network in the top 20 biggest platforms in the DeFi ecosystem.

How can I buy Curve DAO tokens?

If you’d like to buy Curve DAO tokens to include in your crypto portfolio, you can do so through a cryptocurrency exchange. You will typically need to create an account and complete the purchase using either bank cards, EFT or other cryptocurrencies. Always ensure that you use a reputable and regulatory-compliant exchange.