Tap, announces a temporary suspension of XTP locking/fees payment for all its users, reflecting a steadfast commitment to regulatory compliance and global collaboration.

In alignment with our regulatory-first vision, Tap announce the temporarily suspending XTP locking and fee payment in XTP. This strategic move reflects our dedication to regulatory compliance in every aspect of our operations.

At Tap, we prioritize responsibility alongside innovation. This temporary suspension underscores our commitment to regulatory compliance and our ability to effectively serve all our users in the United Kingdom, aligning with the new FCA regulations set in place.

In accordance with the Financial Conduct Authority's (FCA) financial promotion rule, we regret to inform our UK residents that the utilization of XTP for locking or payment is temporarily suspended. The FCA has classified the use of digital assets for obtaining discounts as a financial incentive, thus preventing its extension to any UK resident.

The temporary suspension of services in the UK has necessitated a pause in functionality across our entire platform due to its unified nature. Nevertheless, our team remains unwavering in our commitment to restoring Locking/Paying Fees in XTP for our global community. 

While this transition may present temporary challenges, it also represents an opportunity for growth and collective progress.

We extend our heartfelt appreciation to our users for their unwavering support and patience as we navigate through this transition. Rest assured, Tap remains steadfastly committed to delivering an unparalleled digital asset experience that is compliant, secure, seamless, and transformative for users worldwide.

Increasing speculation is that the global economy could be headed for a recession in 2023. This comes as governments around the world continue to grapple with rising debt levels and sluggish economic growth despite massive fiscal stimulus packages. 

Meanwhile, companies are facing headwinds from changing consumer preferences, technological disruption, and escalating trade tensions. All of these factors have raised concerns about whether the current economic expansion can be sustained over the long term. 

Below we explore the likelihood of an upcoming economic downturn and guide you through how to protect your savings and investments should you be faced with one.
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Are we headed for a recession in 2023?

According to economic research conducted by Bloomberg, economists have predicted a 70% chance of a recession next year, up from their 30% prediction in July last year. While not the technical definition, recessions typically take place after two consecutive quarters of negative economic growth, which was seen last year. 

Despite the interest rates and inflation, consumer demand has deteriorated. After two years of bulked-up hiring, job search activity is now also waning. The stock markets have declined approximately 20% in 2022 with speculations indicating that further drops in 2023 are likely to follow suit.

While these stats might cause panic, know that recessions are part of the natural economic cycle. In fact, there have been thirteen recessions since World War II, each lasting an average of 10 months, all of which recovered. With the right preparations, an economic downturn can cause minimal damage to your financial goals.
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How to ride out a recession with minimal damage (hint: emergency fund)

First and foremost, build your emergency savings fund before the recession goes into full effect. This involves saving money to build up three to six months’ worth of expenses that can be used for any unforeseen costs that might pop up over times of economic slowdown. Building an emergency fund is a surefire way to protect your investments and recession-proof your finances.

On top of this, experts recommend putting off any big purchases, especially luxury items, and creating (and sticking to) a budget. Look for valuable money-saving tips and implement these into your day-to-day life. These tips might help you to save money beyond the economic uncertainty and help you to offset the rising costs of living. Consider creative ways to beat the economy and cut costs.
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How to manage debt in an economic downturn

If you have a steady job, starting today, increase your payments to eradicate your debt. Don’t underestimate the freedom that comes with being debt-free, not only financially but emotionally too. Once you’ve paid this off you will have more room in your balance sheets to navigate the interest rate hike and increased cost of living typically associated with recessions. 

Should you lose your job, try to minimise your unessential debt repayments and focus on having enough money to cover your four pillars: food, utilities, shelter, and transportation. If you have funds left over, put them in a savings account, particularly if you don’t have your emergency fund set up yet.

Whatever happens, do not get into more debt, high interest debt will only make a bad situation worse. Consider speaking to a certified financial planner if you are unsure.
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How to recession-proof your savings

Assuming you still have your job, continue to save money and build your cash reserves. Don’t let economic downturns stop you from moving toward your economic goals. Ideally, you have your emergency savings fund set up to buffer any personal losses and cover your living expenses. This allows you to put your usual amount of savings into an interest-yielding account without any concern for “what ifs”. 

Now is also a great time to review your budget and allocate every cent to a purpose. If there is any extra money left over, incorporate this into your savings or retirement account. If not, revise to see where you can cut spending and fill up your savings jar.
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How to manage your stock market investments during a recession

The golden rule of managing your investments and maintaining your financial position during a recession is not to sell at a loss. Time and time again we see investors make trades based on fear, and ultimately make terrible losses while peers that left their funds in the stock market account see impressive returns once the economy has returned to normal.

Remember: losses are only realised once you withdraw the funds from the investment vehicles. Leave them in there, as with every economic cycle in history, it will get better. And if you have the funds, consider investing a little more - stock market prices will be at “discount” lows. 

Other valuable advice is not to make any sudden changes to your investment strategy, consider investing as a long-term approach. 

Some long-term investors look to incorporate shares in consumer staples companies into their portfolios as a strategy to overcome market slumps. By investing in funds like the Consumer Staples Select Sector SPDR Fund or the Vanguard's Consumer Staples ETF, the hopes are that the success of these funds will offset the losses from other stocks within the portfolio.
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Avoid FUD and be prepared

Despite whatever economic situation might arise, rest assured that it shall pass. After all, if you are reading this now then you have most likely lived through several recessions before and come out on top. Don't let any worries stop you from being prepared in case of a recession, after all, these tips above on how to recession-proof your finances are your best chance of coming out on top, again. 

So, you decided to go deeper into the fundamentals of investing and learn what an APY is. You've come to the right place, let's get you started with this perplexing "APY" term.

What is APY?

In conventional finance, a savings account frequently offers both a low-interest rate and an annual percentage yield (APY). Let's look at what they are and what they mean.

• The Annual Percentage Yield (APY) is the annual return from the principal and accumulated interest on investments or savings, expressed as a percentage.
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• The simple interest rate is the amount earned on the original deposit. 

Assume an account at a bank offers a yearly interest rate of 5%. If someone deposits €2,000 into the account, it will be worth €2,100 after a year with the 5% yearly interest rate.                                           

The difference between interest rate, APY and APR

The APY takes into account the impact of compounding, whereas the interest rate does not. The APY is the projected rate of return earned annually on a deposit after taking compound interest into account.

Compounding interest is the interest that a person accrues from their initial deposit, as well as the interest they earn from their original investment (or in other words, the initial deposit amount plus the interest generated).

The terms APY and APR are frequently used interchangeably, although they represent two different things. These words are sometimes confused due to their close resemblance. However, APY and APR aren't the same things.

The APR (annual percentage rate) is a formula that determines how much interest you'll pay when borrowing money and is the rate of return earned if your funds are invested in an interest-bearing account. 

When a person takes out a loan, their lender sets an APR that varies based on the loan. APRs are either fixed or fluctuating depending on the type of loan the user requires. However, the APR is a rather basic interest rate and does not take compounding into account, unlike APY. 

How is APY calculated?

APY represents your rate of return, also known as the amount of earnings or profit you can make. Of course, your ultimate earnings will vary depending on how long you keep your assets invested while the holding period will influence how much you will earn. 

APY measures the rate of the annual return earned on any amount of money or investment after taking into account compounding interest.

The following is the formula for calculating APY:

APY = (1 + p/n)ⁿ − 1

Where:

p = periodic rate of return (or annual APR)

n = number of compounding periods each year
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Bear in mind that an APY can be calculated in a variety of ways depending on the provider. 

We might all view success differently, but at the end of the day, we want to have enough money to allow us to live debt-free, stress-free, and with a positive retirement ahead of us. While we’re not advocating that being a millionaire is the be-all and end-all, we are looking to them to see what small changes we can implement into our lives to better steer our own financial paths.
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A few basic principles of self-made millionaires

Below we explore 5 habits that the average millionaire does, according to a plethora of data collected by Tom Corley. Over five years he asked 233 millionaires 20 broad questions (and 144 sub-questions) concerning their daily activities. These were the results.
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1. They never stop learning

U.S. President Harry Truman is known for saying, "Not all readers are leaders, but all leaders are readers." Self-made millionaires prioritise learning and self-improvement, with 49% saying that they spent a few minutes every day learning new words. 61% said that they spent at least two hours a day practising new skills.

Reading plays a vital role in this process, with 71% often reading self-help books while 63% said they listened to audiobooks during periods of commute. It was noted that most of the case studies admitted to reading biographies of successful people, typically wealthy people who had built something from the ground up.

Health was another top priority.
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2. They are aware of their weaknesses, and delegate accordingly

86% of the millionaires interviewed worked an average a minimum of fifty hours a week. While the hours are impressive, these millionaires committed time to build and surround themselves with great teams. They focused on their strengths and outsourced their weaknesses. 

No one is a jack of all trades, and these successful individuals honed in on identifying and accepting their weaknesses. Most millionaires noted that if they didn't possess a particular skill, they delegated the task to someone that did, freeing up their time and energy.
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3. They're not afraid to dream big

Millionaires are not confined to small-space things and actively work on setting and implementing their dream lives. While financial moves are calculated, and rarely based on instant gratification, they also allow space to think outside the box and pursue dreams that others might try to deter them from.

With a solid mindset and the right determination, most of these millionaires were able to achieve their dream goals. According to Corley's data, many of the participants in the study used the "Dream-Setting" strategy where they sit down and write out what they want their day-to-day life to look like in 10 years' time. The results didn't arrive overnight, but for many, it did materialise in the years to follow.

This strategy is used by coaches around the world to assist their clients with building wealth and ultimately reaching a million dollar net worth. While people tend to associate rich people with lavish lifestyles, the reality is that a lot of them can be found living in a modest neighbourhood wearing inexpensive clothes and driving modest cars. It's the money habits that matter.
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4. They listen more than they talk

Over the course of the study, several strategies kept appearing. One of them was the "5:1 listening rule". This involves listening for five minutes for every one minute that you talk. This strategy is known to provide a variety of perspectives and strengthen work relationships. 

In fact, 81% of the participants said they make a daily habit of actively seeking feedback from others within and outside of the workplace.
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5. Millionaires create their own opportunities

The Roman philosopher Seneca is attributed with saying, "luck is what happens when preparation meets opportunity." While 94% of the participants firmly stated they would never gamble, most of them had the skill to see what others couldn't, and act on it. Whether it be through innovative routes to success or creative solutions, these millionaires were able to build their own "luck". 

Eventually, with consistent effort comes immense opportunity. If you keep pursuing your goals and never give up on your dreams, luck will eventually find its way to you.
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The habits of wealthy people

If your goal is to build wealth, whether to retire comfortably or impact future generations, consider these habits that self-made millionaires have adopted and consider incorporating some or all of them into your daily living. While wealthy people might not be the greatest role models, self-made millionaires certainly know a thing or two.

Digital currencies are propelling the banking industry into a period of rapid innovation. As digital currencies continue to immerse themselves in the greater financial landscape, businesses incorporating crypto are reaping the benefits from the forefront of this new revolution. This article addresses everything a small to midsize business needs to know about crypto banking and how to leverage this new-age technology.
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What is crypto banking?

The term "crypto banking" refers to the management of one's crypto assets by a third-party financial institution. Similar to how traditional banks manage services pertaining to fiat currency, a crypto bank would manage all services relating to cryptocurrencies.

These crypto banking services typically allow users to hold a balance, make payments with a crypto debit card and earn interest on a supported crypto asset through crypto interest accounts, also known as crypto savings accounts. Some platforms might also offer loan services.

Due to regulatory restrictions imposed on these fintech companies and the crypto market, it is common for these types of institutions within the financial sector to operate in certain jurisdictions like the United Kingdom or the United States of America. This is not uncommon for traditional banks either.

A crypto bank is not typically a crypto exchange, instead, it is defined as a fintech platform operating in the crypto banking space. Providing services for both fiat currency and digital assets, crypto banks are revolutionising the financial institution sector.
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What are the benefits of incorporating crypto into your business?

With over 320 million customers around the world shopping with cryptocurrencies, incorporating digital assets into your payment options allows you to tap into this broad group of consumers.

Additionally, the advantages of crypto payments outweigh fiat transactions in a number of ways, providing a more secure and faster means to send money across borders (or simply next door). These include:
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• More rapid transactions
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• More cost-effective transactions
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• Accessibility
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• Security
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• No chargebacks (all transactions are final)
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• Reduced fraud
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Data suggests that an increasing number of businesses are starting to explore crypto payments, where employees can earn either their full salary or a part of it in digital assets in remuneration for their job. Some remote workers are even maintaining a career solely relying on crypto payments, hence the rise in crypto banks and crypto banking services.
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Crypto banking, payment gateways, and businesses

Through crypto banking services or payment gateways, businesses are able to receive payments in digital assets and instantly convert them into fiat should they wish to do so. It's important to note that these services go beyond the services that a normal crypto exchange might offer.

Some crypto service providers will allow businesses to make crypto payments directly from their account, however, until this becomes normalised, business owners often choose to convert their digital assets due to concerns over volatility and cash flow. 

Below we cover the most pressing questions concerning small to medium-sized businesses incorporating crypto assets into their business models and how to effectively use crypto banking services to streamline this.
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Crypto banking services and small businesses 

Can small businesses use cryptocurrency?

Whether you’re conducting a few transactions a week or several hundred a day, cryptocurrencies provide an ideal payment solution. With minimal fees and no foreign exchange rates, accepting crypto payments is a cost-effective solution for small businesses, especially ones operating with a global customer base.
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By engaging in crypto banking services offered by a reputable crypto bank, businesses can manage cryptocurrency with the same ease as a traditional bank account.
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Why do small businesses use crypto?

Small businesses will typically incorporate cryptocurrencies into their payment methods as a cost-effective solution as well as an opportunity to tap into a broader target market. With minimal transaction fees, short processing times, and heightened security, crypto transactions provide an ideal solution for small businesses to incorporate alongside their traditional payment options. By adding crypto payments to their menu, many businesses are gaining an edge over their competition.
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With the innovation that crypto banks are bringing to the forefront, small businesses can bypass the high fees associated with crypto exchanges and instead tap into crypto banking services at a more realistic price point.
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Crypto as a business expense 

Can crypto be a business expense?

For any size business, understanding the tax implications of accepting cryptocurrency payments is crucial. While it's important to understand the tax rules in your area, consulting a tax professional will likely be in your best interest. 

Businesses can also opt to incorporate crypto tracking software or crypto tax software in their business models to ensure that they are compliant. Please consult your tax professional regarding any questions you might have about being taxed on crypto in your country before engaging in any crypto banking or opening a bank account with a crypto bank.
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Can I buy crypto as a business expense?

As each country’s laws on taxing cryptocurrencies differ, it's best to consult a tax professional in your area who can properly advise. While you don't need a degree in tax to manage a business, gaining an education on the implications of the taxation of cryptocurrencies will do you, as a business owner accepting cryptocurrencies, a world of good. Reach out to your crypto bank or look to crypto companies for recommendations.
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Crypto as business investment 

Can businesses invest in crypto?

Yes, it has become increasingly common for businesses of all scales to invest in cryptocurrencies. Due to its strong ability to store value paired with the increasing adoption of digital currencies as payment methods, many businesses have chosen cryptocurrencies as a investment option. 

With the rising popularity of crypto lending, many businesses are using their digital currency investments to generate wealth. Operating in the same way as traditional savings accounts, businesses can store their digital currency in an interest-generating account that provides returns.

However, before investing in cryptocurrencies we encourage you to conduct thorough research on the topic and decide if it suits your business’s financial goals and business plan.
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Can my LLC invest in crypto assets?

Limited Liability Companies (LLCs) provide the best of both worlds: access to the liability shield typically associated with corporations and the tax benefits found in partnerships or sole proprietorships. With this being said, it’s best to check on the cryptocurrency laws and tax implications in your area before engaging in any crypto investments. 

Businesses and crypto wallets 

Can a business hold a crypto wallet?

Yes, anyone can open a crypto wallet. When looking to incorporate cryptocurrencies or any crypto financial services in your business opening a wallet is a must. Consider what your business intends to do with the cryptocurrencies (i.e. will you be making daily transactions or storing funds long term) and choose an appropriate wallet.

How do I set up a crypto wallet business account?

To set up a crypto wallet business account you will need to find a suitable fintech platform. It must be licenced and meet the necessary regulatory requirements of the area in which you are based. Ideally look for a fintech solution that can provide services in both fiat and cryptocurrencies, to ensure a smooth integration for your business.
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Paying employees with crypto

Can I pay my employees with crypto?

Yes, cryptocurrencies can be used to pay employees’ salaries in most countries. Before going ahead with the process ensure that you have done adequate research about crypto payments in your area and are familiar with the rules and regulations. I.e. Some states require employers to pay the minimum wage in USD and the remainder in cryptocurrencies.
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Crypto and business operations

What is a crypto business account?

A crypto business account is an account from which a business can manage its cryptocurrencies. While crypto business accounts might vary from platform to platform, the basis is that the account will allow a business to buy and sell cryptocurrencies and hold a balance.
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How is crypto taxed for business?

Typically, cryptocurrency income is taxed as regular income tax, however, a business must do adequate research on the matter to determine the tax implications of accepting cryptocurrencies in your country. We always recommend contacting a tax professional that specialises in cryptocurrencies in your region.
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How do I report crypto as business income?

You will need to find the relevant tax rules in your area to determine how to report crypto as a business income. Countries will typically require a specialised crypto tax form when declaring crypto income. Remember, it is a criminal offence to not declare the appropriate earnings.
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Should my business start accepting cryptocurrency?

By embracing cryptocurrency as a payment option, you can lower your transaction fees, safeguard yourself from costly chargebacks and broaden your customer base to better suit their inclinations. This will not only help strengthen the security of your business but is also guaranteed to expand its reach in today's market.

Accepting cryptocurrencies might not be appropriate for every business model, so ensure that the payment option fits into your business model. 

How can a business accept crypto payments?

In order to accept cryptocurrencies you will need to provide your wallet details or QR code in your payment options. Installing crypto payments into your online store is straightforward, simply find the appropriate plug-in or app compatible with your e-commerce platform. If this option isn't accessible, businesses can add the code from their wallet in HTML.

Can I buy crypto with my LLC?

LLCs are legally allowed to own and trade cryptocurrencies in most countries, however, you will need to confirm with the relevant laws in your area. Businesses can open a crypto wallet in the LLC’s name and purchase the funds directly or transfer the funds from a personal wallet. 

TradFi (traditional finance) is one of the newer terms to emerge from the cryptocurrency space. A combination of the words traditional and finance, TradeFi encompasses centralised institutions like retail, commercial, and investment banks. The term originated to help differentiate these from the decentralised world of cryptocurrencies. 

What is TradFi (traditional finance)?

TradFi refers to the traditional finance institutions and fintech companies operating within the current mainstream financial system. These service providers are heavily centralised and regulated by governments and are primarily brick-and-mortar businesses that have provided banking and financial services for decades. They typically also carry high barriers to entry, and stringent KYC and AML processes.

TradFi includes everything from banks to hedge funds to brokerages. Examples of TradFi platforms include JPMorgan Chase and Goldman Sachs (banks) as well as fintech companies like PayPal, Square, and SoFi. All these platforms execute financial transactions in a centralised and controlled manner.

Benefits of TradFi and the mainstream financial system

Only businesses with the appropriate licences and accreditations can offer TradFi services. If these TradFi institutions' services falter in any way, customers can file complaints and receive compensation with the backing of regulatory bodies. Additionally, the amount of paperwork makes it difficult for scammers and fraudulent people to get involved, particularly with money laundering.

TradFi also assists the government by monitoring illegal spending and investments in the finance industry. In DeFi, because crypto transactions are anonymous, this is more challenging to do. By working together, TradFi institutions and governments can better achieve their goals.

TradFi has several limitations. The excessive rules and government intervention stifle development and innovation in the sector. It also keeps a significant portion of the population from accessing financial services. 

In the coming years, TradFi institutions, blockchain technology, and cryptocurrencies will hopefully find a way to collaborate to create an advanced financial infrastructure that is accessible to everyone.

TradFi vs DeFi

DeFi, or decentralised finance, is a financial infrastructure that doesn't require central authorities like banks or governments. It uses blockchain technology and smart contracts to verify and authorise transactions in a decentralised, peer-to-peer manner. 

One of the most prominent key differences between the two is that with TradFi services, the money is issued by the bank while decentralised finance platforms use a blockchain protocol to issue the funds to crypto users. Smart contracts then authorise the transaction between the two parties, while TradFi transactions are facilitated by banks. 

Touched on above, DeFi is much more financially inclusive, providing services to anyone who can fulfil the requirements (which typically involve providing collateral). TradFi platforms on the other hand will put the applicants through rigorous checking of financial statements and credit scores. 

TradFi investing has now been opened up to a much wider audience as a result of digitisation, however, it still requires intensive KYC (Know Your Customer) and AML (anti-money laundering) documentation.

TradFi vs CeFi

The centralised nature of CeFi (centralised finance) fuses together the best aspects of DeFi and TradFi. This system provides opportunities to investors who wish to use cryptocurrency-based accounts with less of the risk and might include crypto exchange services. These accounts have many benefits, with a strong similarity to traditional savings accounts.

However, the APYs (annual percentage yield) differ significantly from CeFi to TradFi platforms. You can borrow money against your crypto assets on CeFi platforms just like you would with a collateral-backed loan from a bank. This requires little to no documentation, unlike TradFi.

While some government-backed insurances cover TradFi deposits, this is not the case for CeFi deposits, making it a more risky endeavour.

How do TradFi financial institutions fit into the crypto world?

In order to stay afloat and keep up with the times, industries rely on implementing cutting-edge technologies. Today, blockchain technology and digital assets are at the forefront of a financial revolution.

If traditional financial institutions, TradFi platforms, want to maintain their relevance, they will have to eventually adopt cryptocurrencies into their systems, thus bringing them into mainstream use.

Due to traditional finance needing to comply with government regulations, the implementation of digital currencies into their platforms will likely have positive forward momentum for crypto regulation. 

While currently they remain separate, there is plenty of opportunity for traditional finance and crypto platforms across key sectors like lending and insurance to join forces and merge each one's progress thus far in terms of innovation, speed, and accountability.