However, this is expected as most blockchains, cryptocurrencies, and tokens stand on the pillar of decentralization. This implies a certain degree of regulatory absence as governments and authorities struggle to develop solutions to safeguard investors and users in the absence of any central entity to control or regulate. This effectively places a greater degree of responsibility upon individuals to be more mindful, informed, and educated on safe practices to be followed before engaging in the crypto and NFT ecosystem. And for those who firmly believe and profess in the vision of a decentralized future, this is a responsibility that they are duty-bound to accept.

With the NFT explosion in 2021, more scammers have started targeting users and holders of valuable NFTs. Some NFT holders have even lost NFTs worth $2.3 million because of phishing links, while others have lost $2.7 million in Ether because of a rug pull.

While there seems to be an endless list of methods through which scammers dupe NFT investors, we have managed to compile a list of safe practices that you can follow to limit your exposure to these scams. We will also discuss a few famous scams in the NFT space over the past year and the types of scams commonly observed. So if you’d like to know what they are, keep reading to find out.

What are NFTs?

Before we begin, let’s discuss what NFTs are exactly!

NFT stands for Non-Fungible Token. This refers to a unique piece of data in a smart contract address on the blockchain that isn’t inherently interchangeable for some other token. They are used as digital representations of specific rights vested with the owner of the NFT granted by the creator of the NFT. NFTs have grown tremendously in the past few years, with projects granting their holders a wide range of utility.

That said, let us look at some popular NFT scams from the past year.

Famous NFT Scams

While there were many NFT scams in the past year, these two, in particular, caught my eye. They might not be the biggest or craziest scams in the space, but they definitely had some interesting drama in the fold. Keep reading to find out what exactly went down!

CreatureToadz

CreatureToadz is an independent NFT crossover project by Skirano.eth. It is based on two of the most successful communities in the NFT Space- Creature World and CrypToadz by GREMPLIN.

NFTs from the CreatureToadz collection via OpenSea

When I say NFT scams, most of us think of phishing websites, and rug pulls by founders. Phishing, in particular, is very common, and most projects ask you to always refer to their official social media channels for legitimate links. But what happens when those very same social media accounts become compromised? Because that’s precisely what happened with CreatureToadz.

On 20th Oct 2021, members of the CreatureToadz Discord suddenly received a notification in the official Discord about a ‘stealth launch’. It urged users to begin minting immediately at the website mentioned in the message. Investors with FOMO implicitly trusted the message’s contents to be true since it was posted by a moderator of the official Discord. In a matter of 45 minutes, the hacker had collected a total of 88 ETH from over 580 mint transactions via the phishing website. By then, the CreatureToadz team had managed to regain control over the Discord and urged investors to stop minting from the site posted by the scammer. The team immediately tweeted an apology message to the community and offered to completely compensate the scam victims.

Meanwhile, the team was left wondering how the hacker had gained access to the Discord. In a Twitter Space hosted on the same day by NFT investor and journalist Andrew Wang, the hacker’s identity was linked to a Twitter account named HEERR. As this was being announced in the Twitter Space, listeners noticed that the hacker was actually tuning in live to the discussion in the Twitter Space. This prompted the participants to call out the hacker, asking him to return the stolen funds.

The hacker then revealed himself to be a 17-year-old high school student who had made the attack as a joke to show the vulnerabilities of NFT discord communities. This led to a heated discussion within the Twitter Space as people tried convincing the hacker to return the stolen funds. Ultimately the hacker promised to return the funds to the community by sending them to the CreatureToadz team, which refunded each of the affected wallets individually.

Despite this seemingly fortunate ending, participants in the NFT ecosystem were left scarred by this encounter as more NFT projects made it a point to let their community know that they would never deviate or do a stealth launch from the announced launch date. Even so, CreatureToadz wasn’t the first, and it certainly isn’t the last to fall for this scam.

Holy Primes

Most of us are familiar with the phrase ‘pump-and-dump’. It’s a common scam in the crypto and altcoin space, where groups collectively decide to increase the buying pressure of a particular token only to sell it all at the top once more investors get in. This price action is usually the result of a coordinated group effort and is not based on any fundamental utility or development. These schemes are generally seen in more liquid markets. However, this particular project that we will discuss is the subject of a pump and dump scheme in the NFT space- an illiquid market.

Discord Annoucement of Pump Plan by NFTLlama via Twitter

Holy Primes is a meme NFT collection by Pokilo.eth that features pictures of calculators with prime numbers. The project started off as a joke and has now introduced some utility to act as a mint pass for collections from new artists. However, this project is on the list today because of a tweet by NFTLlama back in September of 2021. The tweet called for a collective group effort to buy and pump the floor price of the NFT collection to at least 3 ETH. The tweet was very transparent about what it wanted to achieve- becoming the AMC/Gamestop Pump of NFTs and being featured on Forbes. Soon, many investors FOMO-ed in expecting to raise the floor price all the way to 15-20 ETH before it starts crashing. However, the collection started crashing as soon as it hit a floor of 3 ETH. Today, at the time of this writing, the project’s floor sits at around 0.03 ETH, with many of the participants in the pump having lost quite a bit from their initial buy prices.

Now, although I’ve put this project under the title of a scam, looking at how open NFTLlama was about what they were doing, you can hardly call it a scam, can you? Investors were more than aware that participating in this pump had a huge risk, yet they willingly gambled upon the chance of making a quick buck and riding on the hype train. While there was no misrepresentation, and it certainly isn’t illegal in an unregulated market such as the NFT space, the point of including this incident in the article is to make you more aware of the different schemes and pitfalls that you can fall into. If you’re in the NFT space, you will come across many more projects and community schemes with similar pump-o-nomics, but the best safe practice to keep your money safe is to stay away from participating in them.

Types of NFT scams

Now that we’ve seen a few real examples of NFT scams, let us look into some of the most common NFT scamming methods.

Phishing Scams

They say imitation is the best form of flattery, well, maybe not so much in this case. Phishing scams refer to attacks in which investors and users are duped into visiting and interacting with fake websites that look identical to the original. This method of attack is one of the oldest and most common in the history of the internet. You can lose money in this form of attack either by attempting to mint an NFT on the fake website (which just drains your ETH without sending an NFT) or by submitting the seed phrase of your wallet on a fake MetaMask or some other hot wallet website/pop-up.

Pump and Dump Scams

Ah, the era of influencer marketing. What could go wrong? Lil Uzi Vert probably got your back, right?

Wrong.

If you’re in the NFT space, it’s best you always do your own research about the project and its team. That said, while you might think influencers have your best interests at heart, that’s not always true. For example, we need only look at all the crazy pump and dumps we’ve seen in the space over the past year from high-profile influencers in projects such as Save the Kids, Dink Doink, and CxCoin.

Most influencers get offered crazy sums of money to promote a particular NFT or crypto project, and even if the team seems sketchy, the offer might just be too good to pass up. So regardless of how big a fan you might be, it’s in your best interest to look at projects with influencers behind them with more suspicion than usual. If you still need convincing on why your favorite influencer might just be engaging in a pump and dump scheme in the making, all you need to do is watch a few Coffeezilla videos. I swear you will be convinced.

Catfishing

That’s right, Catfishing! A practice that is commonly seen in dating apps where people pretend to be someone they’re not, to mislead you. I dare say that you’ll actually find more catfishes in your Discord DMs than you would in your dating profiles. These malicious DMs would resemble a message from a particular NFT team member or even a Discord bot offering you an exclusive whitelist or mint opportunity.

Phishing Scam via Discord DMs- A catfisher pretending to be a discord bot. (Disclaimer- nothing in this article or picture should be construed as endorsement of any project)

If you’ve ever replied to one, you’d find yourself being casually asked to disclose your wallet seed phrase or directed to a phishing link of the original project. Unfortunately, this method is so common in the industry that most project members add the word “Will Never DM you” to their name to get the message across.

Rug Pulls

Imagine cruising along a highway in your car when the wheels suddenly fly off. That’s what it feels like for most NFT investors who get rug-pulled. A rug pull is when the team behind a particular NFT project suddenly decides to abandon the project after launch and withdraws all funds intended to be used for the future development of the project from the treasury.

Recently, there was a massive rug pull of around $1.3 million from an NFT project called ‘Big Daddy Ape Club’ on the Solana Network. This particular rug pull happens to be not only the biggest NFT rug pull on the Solana network but also one of the most brutal ones. While most rug pulls leave investors with an NFT to hold, the investors of the ‘Big Daddy Ape Club’ project that paid the mint fees never even received their NFT.

Big Daddy Ape Club via Decrypt

To add insult to injury, most investors trusted the project as they were even verified by the decentralized identity verification company called ‘Civic’. The identity verification company is now working with law enforcement to track down the scammers. This shows that no matter how much you trust those verification badges, in the absence of direct regulatory scrutiny, you need to buckle down on your own vetting measures and be more critical of suspicious activity that you notice in the discord groups of these projects.

Bidding Scams

If you’ve ever visited OpenSea or most other NFT marketplaces, you would have noticed that users can place bid offers on NFTs even if they are not listed for sale. This feature allows owners to accept an offer without listing the NFT for sale. While this might save some gas fees and offer more flexibility in trades for the holder of the NFT, scammers have begun to use this feature to attack and snatch NFTs from owners at ridiculously low prices. For example, they might initially place a bid for 5 ETH, which they change to 5 USDC or another lower-priced cryptocurrency before you accept the bid.

Since victims of this scam usually lose their NFTs from oversight or carelessness, it is vital to keep in mind to always double-check the bid and the offered payment token before accepting the bid.

Malware

There have been a lot of MetaMask hacks in the past couple of years, with no one being able to understand how exactly the hackers gained access to their wallets. Victims swear that they never visited any phishing websites or revealed their seed phrase to anyone. So how exactly did this happen?

CryptoJordin’s MetaMask Hack Video via YouTube

That’s exactly what a Youtuber by the name of CryptoJordin found out. Sometime in December last year, he fell victim to a MetaMask attack and woke up to find all his funds drained from the wallet. Puzzled and determined to find out who the culprits were and how they had drained his funds, he recorded a series of videos documenting his investigation. His investigation reveals that the attackers had managed to install malware into his computer through a file share link in his email by pretending to be a gaming products sponsor. This malware quickly infected and gathered all the data about his home devices connected to his Wi-Fi. This allowed the hackers to remotely access and hack any device in his home. As much as hardware wallets are praised for their security, even they would have been vulnerable to this particular malware attack.

Discord and Social Media Hacks

Just last week, the social media accounts of many crypto influencers were hacked, and promotional videos of some scam projects were posted. While that particular hack happened on the YouTube platform, most of the social media hacking activity directed at crypto and NFT projects seems to occur on the Discord platform. Hackers gain access and control over the official server by compromising the team members’ accounts or posting links on the announcement channel of projects by gaining access to the Discord webhook feature. Many projects such as CreatureToadz, Monkey Kingdom and Fractal have fallen victim to this method of attack.

List of Safe Practices

Now that we’ve understood the most common scams in the NFT space, let us look at a set of safety guidelines that we must follow as participants in the ecosystem.

1. DYOR

That’s right, the number one practice to follow is doing your own research (DYOR). Most participants in the NFT space just follow one influencer after the next without taking the time to research and make informed decisions about a project. As entertaining as YouTube videos are, they are no substitute for one’s own research into a projects team members, their past activity, the proposed utility of the project and whether or not the artwork and community is something that suits you.

2. Avoid Anonymous or Pseudonymous teams

As a general rule of thumb, I find it safer to stay away from projects with anonymous or pseudonymous founders or teams. With these types of founders or teams, you can never know who they are or whether they’ve already been a part of previous rug pulls or scams. Primarily, this information allows you to be more informed and predict the team’s future actions. Secondly, in the event that the anonymous or pseudonymous founders have been involved with scams in the past, and this information surfaces a few days after the launch, the project gets affected as a whole and might never recover from the bad publicity associated with the founder.

3. Check Social Media Activity

Debatably, one of the best metrics to predict the legitimacy of an NFT project is by looking at the nature of their social media activity. Check to see if their social media campaigns rely a bit too heavily on Influencer marketing and if there is absolutely no trace of discussions on future plans and utility structures for NFT Holders. Moreover, while follower counts might indicate a level of interest in the project, the true gauge for calculating interest lies in the engagement that each of their posts receives from the community.

4. Use a separate wallet for mints

I find that using a separate wallet for connecting and minting from new NFT project websites helps me sleep better at night. As they say, never place all your eggs in one basket. After you’ve successfully minted an NFT, you can transfer it to your main wallet for safekeeping.

5. Double-check mint website with official channels

Always double-check the website URL before you connect your wallet to it. If you fail to follow this step, you might end up becoming a victim of phishing scams.

6. Check the contract address of the NFT collection

If you’re on the secondary market and you spot an NFT from a famous collection for dirt cheap prices, you’re probably looking at an imposter. So, before you FOMO in and click that buy button, cross verify the contract address of the NFT you wish to buy with the contract address displayed on the project’s official website.

7. Use a hardware wallet

Needless to say, hardware wallets are considered one of the best measures to safeguard your crypto assets. They will protect you against most malicious actors and attacks as they store the private key on the wallet device instead of the computer. This makes it hard for attackers to approve transactions without access to your hardware wallet. Essentially, this protects your NFTs from being moved without your permission. Some of the best hardware wallets in the industry are from Trezor and Ledger.

8. Never give your private keys or seed phrase

Not your keys, not your coins. The only time you will ever have to enter your seed phrase anywhere is when you’re either making a backup of your wallet or if you’re restoring an old wallet in a new device or browser. No one will EVER ask for your private keys or recovery phrase. If someone DMs you asking for your seed phrase to send you an NFT or whitelist your wallet for mint, you can be guaranteed that it’s a scam hoping to steal your wallet. Also, keep a watchful eye on any random pop-ups claiming to be MetaMask asking you to re-confirm your seed phrase; that’s a scam.

9. Never click suspicious links

Always be mindful of what you visit on the internet with the device you use to access your crypto wallets and accounts. Your device might become infected with a virus or malware that can target your MetaMask or monitor your financial activity by accessing suspicious websites and links. If possible, I’d suggest using a separate device with an independent internet connection for your crypto transactions.

10. Turn off your Discord DMs

For the love of God, if you’re planning to join a ridiculous amount of Discord servers to secure a whitelist or engage with a community, I’d suggest disabling the option to receive DMs from strangers selectively in certain servers, if not completely. This would drastically reduce your chances of becoming a victim of phishing links and catfishing attacks on Discord.

11. If it seems too good to be true, it probably is.

The last safe practice on this list is to doubt everything until proven otherwise. If something seems too good to be true, more often than not, it probably is. So, make sure you verify everything you come across.

Closing Thoughts

If you’ve managed to better understand what to expect and how to protect yourself when it comes to engaging in the NFT ecosystem, then this article has done its job. But be warned scammers are constantly innovating new ways to attack and steal from participants in the crypto and NFT ecosystem. So the only real way to be safe is to be proactive in educating yourself about safety measures to be followed as the ecosystem keeps evolving. Until then, as they say in the NFT community – WAGMI.

The post NFT Scams: How to Avoid them and Keep SAFE! appeared first on Coin Bureau.

The Sandbox recently launched their alpha season and boy oh boy was it an experience. While the event was available to everyone, the holders of the exclusive Alpha Pass were the only ones who could access the ‘play-to-earn’ aspect of the game. There was a total of 5,000 Alpha Passes and they were distributed for free to the community via Twitter and other contests. If you were one of the few lucky ones who won an alpha pass through their contests, you could have made a sweet profit as these Alpha passes sold for as high as 2.7 ETH on the secondary market, that’s a whopping $11,000 at current prices.

If you are anything like me, you’re probably wondering why anyone would trade such large sums of money for access to a gaming metaverse. This question led me down the deep rabbit hole of trying to understand what the sandbox is, and how to be a part of it. And trust me, it’s not something you want to miss. Keep reading to find out.

This review of the sandbox will guide you in understanding how to be a part of the sandbox and kickstart your journey towards mastering the game mechanics, along with offering a glimpse into the sandbox’s journey and its vision for the future.

The Sandbox Journey

This is the tale of a classic game that ascended into blockchain heaven. That’s right, the Sandbox, had its humble beginnings as a regular cross-platform game-builder, not on the blockchain. This version of the sandbox was a 2D pixel-art world creator and it was officially launched in 2012 for mobiles and later expanded to Steam for PCs in 2015.

Animoca Brands, a blockchain game development company, acquired The Sandbox in 2018 and announced its plans to bring the sandbox to the Ethereum blockchain. This new version of the sandbox on the blockchain is a voxel-style virtual land and game-experience building platform. This expansion to the blockchain aimed to solve certain key issues with traditional gaming, namely; true ownership of in-game assets and a free open market economy for creators and players without interference from centralized institutions.

The Sandbox is designed with a comprehensive economy and is suited for artists, investors, gamers, and game designers. The Sandbox has three main pillars which help it run this economy, they are; the Marketplace, the VoxEdit, and the Game Maker.

Marketplace

The Marketplace is built on the Ethereum blockchain where ASSET owners and creators can freely trade. The primary currency to trade on the marketplace is $SAND. To access and use this marketplace, you must be connected to the Ethereum mainnet and have an account created at the sandbox website. Once you have satisfied these requirements, you can buy and sell NFTs on the platform for $SAND, provided you have a little bit of $ETH in your wallet for gas.  For all assets sold on the marketplace, 95% of the proceeds go to the seller and 5% goes to the Sandbox Creator and Game Maker Fund.

The Marketplace via The Sandbox Gitbook

Currently, there are four categories of ASSETS that can be purchased in the marketplace; Entities, Equipment, Wearables, and Art. Some of these categories are purely cosmetic and some offer additional utility to your game experience. In the future, The Sandbox plans to add more categories to the marketplace such as Blocks, Games, and Avatars.

The Marketplace helps fulfill the brand’s vision for a truly decentralized and open marketplace. Well, somewhat decentralized. As of writing this piece, for your assets to get published to the marketplace as NFTs, they need to be vetted by the marketplace curation team and you as the artist need to be a part of the ‘Creator Fund’.

VoxEdit

The VoxEdit is a Voxel Editing software developed by the Sandbox team and is an integral part of The Sandbox ecosystem. It helps artists create the ASSETS for The Sandbox metaverse. The Voxel, in simple terms, is a 3D-pixel and is the building block for all the ASSETS on The Sandbox.

The VoxEdit App Interface

VoxEdit offers three key functions, Modelling, Animation, and NFT Conversion.

With the Modelling function, artists can design and create the 3D voxelated versions of the particular design they have in mind for their asset, or import an earlier work made for another game like Minecraft. With the Animation function, artists can ‘rig’ and animate various parts of their ASSET and create unique movements for various scenarios in the game. Finally, once the artist is satisfied with his creation and has tested its interaction in a game, he can choose to mint his ASSET into an NFT with the VoxEdit platform. If you have exported your assets to the Sandbox, they will be visible on your profile. You can then choose to share it via the marketplace as a virtual asset on the blockchain.

The VoxEdit also has preset templates that artists can work on top of. These templates greatly reduce the amount of time it takes to create an ASSET and is quite beginner-friendly. The Sandbox team has a tutorial series on how to use VoxEdit, which I found quite useful and simple enough for beginners. Don’t believe me? Well, look at the masterpiece I’ve made after watching a few videos.

If you’ve managed to recognize what I’ve attempted to create, Congratulations! You are a supporter of the Coin Bureau, through and through.

Creators Fund

The Sandbox Creator Fund was launched in 2018, with a fund pool of $2 Million. It focuses on developing the talents of its users in Voxel Art to produce high-quality ASSETs for the game. The program is limited to the first 1000 participants, it will help the artists in creating and publishing the ASSET to the Sandbox Marketplace in addition to rewarding the artists monetarily for their creation based on the complexity and quality. The artists that are a part of the Creator Fund are the only ones who can publish their assets during the Sandbox’s Alpha and Beta stage. This provides them with much better exposure, making them be able to stand out from the list of artists creating on the platform post public launch.

Game Maker

The Game Maker is the third and final pillar of the Sandbox Ecosystem. Game creators and gamers create and test various game experiences made using the ASSETs developed by the Artists. The Game Maker allows users to place and use their ASSETS within a piece of LAND (an ERC-721 token) that they own in The Sandbox. As of this moment, to publish a game you’ve created you must own a parcel of LAND in The Sandbox or partner with someone who owns a LAND in the Sandbox.

While ASSETs can be used as decorative items on LANDs, they can also be used to construct fully immersive and fascinating gaming experiences and mechanics. Based on the player’s actions within the game, the ASSETs can be programmed to behave in a certain way using visual scripting nodes, this transforms a LAND from a decorative experience to an immersive game experience. The Game Maker allows you to make games without any coding. So, if you’re interested in making your own games in The Sandbox but aren’t sure how to, then you must check out the official tutorial playlist by the Sandbox and this tutorial by one of the members of the Sandbox team.

The team hosts regular events called ‘Game Jams’ with a pretty attractive reward pool. Game Jams are events where Game Creators are encouraged to create an interactive and engaging game with the use of the Sandbox Game Maker and submit it for the competition.  The games are judged according to pre-announced criteria and the first 10 places receive rewards from the reward pool. The most recent Game Jam is a partnership between The Sandbox and Round21 with a theme centered around a sports-related gaming experience.

Game Maker Fund

The Game Maker Fund is an exclusive fund that focuses on developing the talent of its users in game creation and development on The Sandbox. It rewards and incentivizes those who have proven skills in game design or digital world design by sponsoring them with the $SAND tokens required to create and publish their game design. Admission into the fund has a very thorough selection process, this is to ensure that the games published via the Fund are only the best of the best. This focus on quality will enrich the experience of players playing the game and bring in more people to the platform.

Token Economy

The token economy of the Sandbox features five types of Tokens; namely:

1. LAND (ERC-721)
2. SAND (ERC-20)
3. ASSET (ERC-1155)
4. GEM (ERC-20)
5. CATALYST (ERC-20)

LAND

LAND in The Sandbox is an ERC-721 NFT token that grants its holders rights over a 96×96 meters parcel of virtual land in The Sandbox metaverse. LAND owners can build unique experiences using ASSETs for users to visit and experience. There is a total of 166,464 parcels of LAND in The Sandbox, and no more will ever be minted. This makes LAND an incredibly scarce NFT within The Sandbox.

Concept Art for LAND in the Sandbox via Medium

Land Distribution:

• 123,840 LANDS (∼74%) are available for sale in total.
• 25,920 LANDS (∼16%) will form the Reserve, which will be distributed to partners, creators, and gamers as rewards.
• 16,704 LANDS (∼10%) will remain the property of The Sandbox. They will be used to host special events, feature exclusive games and ASSETS.

There are 2 ways owners of LANDs can monetize them.

First, by creating gaming experiences on their LAND and charging players in $SAND to play the game experience. This method is especially effective if the gaming experience is very high quality and/or if it offers players a chance to earn some $SAND in the process.

Second, by renting LAND to other Game Creators, artists, or players to build their own experience on the LAND that they can display and monetize. This method provides the LAND owner with steady passive income from the user renting his LAND.

LAND Ownership Relations Chart via Medium

Estates– Estates are a combination of multiple adjacent LAND parcels. They come in 4 different sizes (3×3, 6×6, 12×12, and 24×24). Estates can be owned by one single person or by multiple different owners. They offer great visibility to owners as they can be seen quite distinctively (due to their size) by players who click on The Sandbox map. Estates are usually desired by big brands and companies who want to establish a digital presence in the Sandbox metaverse.

Districts– Estates that are made of LAND parcels owned by multiple different people are called Districts. They are essentially a congregation of LANDs that ally to self-govern and build towards a common purpose. While Districts are yet to be released in the current version of the game, they should be available with the full release of the game to the public. The Sandbox team envisions that ‘districts’ will give rise to DAOs within the Sandbox metaverse. LAND owners within a district must stake $SAND to create and be a part of the district.

SAND

$SAND Use cases via The Sandbox Whitepaper

$SAND is an ERC-20 token that serves as the primary currency of The Sandbox metaverse. $SAND is a utility token that can be used by all participants within the Sandbox economy for various purposes such as:

Transacting on the Sandbox Platform– Artists and Players can buy and sell ASSETs with $SAND. Users can only purchase LAND with $SAND during the primary sales and for all sales done through the Sandbox Marketplace. Artists must also spend $SAND to upload their ASSETs to the marketplace.

Governance– The Sandbox will follow a DAO structure and $SAND is the governance token. Holders of the token can take part in key decision-making regarding the future of the platform. Such key issues include Foundation grant attributions to content and game creators and feature prioritization on the platform Roadmap. SAND owners can also delegate voting rights to other players of their choice.

Staking– The token can be used for staking on the platform allowing the user to gain passive income in $SAND during the holding period of the token. Staking is also the only way for Artists and other players to farm Gem and Catalysts, both of which are key elements in ASSET creation.

Fee Capture Model– The 5% fee charged by the Marketplace will be utilized towards strengthening the treasury and foundation of the Sandbox.

Foundation– The foundation can be regarded as a collection of funds that are used towards the development of the economy and its participants. The foundation will be offering grants to deserving artists and game projects. All the grants offered by the Foundation will be in $SAND.

The sleeping giant: $SAND’s meteoric pump in November 2021 via CoinMarketCap

Price History- To say that the $SAND token has given its early investors amazing returns, would be an understatement. The $SAND token had an IEO back in Aug 2020 and was sold for just $0.0083 per token. With the current price of $SAND sitting at $5.91, that’s a 72,050% return since launch. The token began publicly trading at $0.086 in Aug of 2020 and hit an all-time low of $0.028 in November 2020, just a couple of months post-launch. Most of this dumping in the price was due to IEO investors booking profits as the token had already achieved 10x in the launch.

The token traded at a consistent $0.03 to $0.1 until the start of the 2021 bull market. During the early half of the bull cycle this year, the SAND token hit an all-time high of $0.84 in March, but this pales in comparison to its all-time high of $8.44 in the second half of the 2021 bull cycle in November. Most of this price action is thanks to a big inflow of money from institutional investors into metaverse projects. This coupled with Facebook’s announcement regarding its rebranding to ‘Meta’, sent the crypto markets into a frenzy around blockchain gaming and metaverse projects in particular. While the token is currently seeing a healthy correction, we can expect a better upside with the full launch of the game and public marketplace, sometime in late 2022 to early 2023.

Sandbox Vesting Schedule via Binance Research

The $SAND’s total supply is 3 billion and current circulating supply is 919,498,319 (i.e 30.64% of total supply). The Sandbox’s token unlock schedule indicates that 100% of the supply will be unlocked by 2024. The founders of the project have also indicated that their vision for the Sandbox is to be a fully self-governing community-run DAO, this could mean that the team would slowly be selling all its tokens to the community. This sell-pressure coupled with Sandbox’s token unlock schedule could mean that while an upside is likely for $SAND, it may not be as meteoric as compared to its previous pumps.

The $SAND token is currently available on Binance, Uniswap and Simplex.

ASSET. 

ASSETs refer to the voxel creations of artists and other creators. ASSET can be minted into NFTs which follow the ERC-1155 standard. ASSETs are the tokens that build the actual experience in The Sandbox metaverse. Artists create ASSETs which are used by Game Creators to build immersive experiences for the players and citizens of the Sandbox.  As explained earlier, Artists use VoxEdit to create and publish an ASSET. Once the artist has created and selected the desired ASSET, he will be able to mint and ‘publish’ the ASSET as an NFT on the Marketplace. During this stage, the artist can determine the scarcity of the NFT by deciding on the number of copies to be minted of that particular asset. The NFTs will either be common, rare, epic, or legendary, depending on the number of copies minted.

• Common has a maximum of 20,000 copies
• Rare has a maximum of 4,000 copies
• Epic has a maximum of 1,500 copies
• Legendary has a maximum of 200 copies

The ERC-1155 Standard – The Sandbox went with the cautious decision to follow the ERC-1155 standard for their ASSETs instead of the ERC-721. This can often seem puzzling to users because the ERC-721 is touted as the gold standard for NFTs. However, in a gaming metaverse such as The Sandbox, where gamers will use the NFTs for various interactive gameplay and artists will be selling multiple copies of the Same ASSET, it makes more sense to use the ERC-1155 instead of the ERC-721. Artists and gamers can save on gas fees by being able to trade NFTs in one flexible contract.

ASSET Categories: Currently, there are five different categories of ASSETs in The Sandbox. They are; Entities, Equipment, Wearables, Art, and Blocks.

Classification of Asset Categories based on functionality

Entity – Entities are functional environmental ASSETs. They give interaction to an experience and help bring the environment to life. Typical examples of Entities are animals, birds, avatars, landmarks, etc. Entities are often animated and can be programmed to interact with the user in different ways for different scenarios.

Equipment – Equipment is functional player ASSETs. They are accessible from the inventory and can be worn by the player. Equipment often offers boosts to the player in a particular gaming experience. Typical examples of Equipment are swords, shields, gloves, helmets, etc.

Wearables – Wearables are cosmetic player ASSETs. They can be used to customize the player’s complete Avatar or specific body parts. An avatar is typically composed of four different body parts, that consist of the head, torso, legs, and feet. Each of these wearables can be customized at will to create a unique avatar. Cosmetic wearables will be fashionable to customize avatars and give them unique styles.

Art – Art ASSETs are cosmetic environmental ASSETs and are used mainly for their visual aspects. Art can often be used to add a certain uniqueness to the gameplay visually. Typical examples of Art ASSETs are voxelized versions of traditional works of art, stylized items, buildings, landmarks, statues, etc.

Blocks – Blocks are cosmetic environmental ASSETs that change the look of the landscape. Typical examples of blocks can be water, mud, sand, and lava, etc.

GEM

GEM is an ERC-20 token that is burnt during minting an NFT. NFTs that are minted this way, gain special attributes that grant the ASSET a boost when used in a game experience. By burning GEM, you can boost the ASSET’s stats. One GEM will be able to provide up to 25 attribute points to an ASSET and, with the help of CATALYSTs, you’ll be able to socket up to 4 GEMs, meaning up to 100 attribute points. As of now, the only known way to obtain GEM will be through staking $SAND on LAND.

There are five types of attributes that can be obtained with GEM, they are;

1. Power
2. Defense
3. Magic
4. Speed
5. Luck

These attributes will have functionality within the Game Maker, allowing the creator to create even more engaging and interactive games.

CATALYST

CATALYST is an ERC-20 token that is burnt when used during minting an NFT. CATALYST help determine the rarity of an ASSET and provides slots for storing gems. As of writing this article, it has not yet been revealed how Catalysts may be obtained.

Catalysts are divided into four tiers; they are-

1. Common- 1 GEM socket- up to 20000 ASSET copies can be minted
2. Rare- 2 GEM sockets- up to 4000 ASSET copies can be minted
3. Epic- 3 GEM sockets- up to 1500 ASSET copies can be minted
4. Legendary- 4 GEM sockets- up to 200 ASSET copies can be minted

How to get started in The Sandbox Today

The easiest way to get started with The Sandbox today would be as an Investor. LAND prices have almost 200x from their initial sale price of $48 a couple of years ago. The $SAND token has also seen an incredible pump from the metaverse craze in the current bull market. But The Sandbox as a project is yet to be fully deployed and launched. One might say that there is still incredible potential ahead for $SAND.

The second way to get started with The Sandbox would be as a Creator or Artist. I would argue this is the best way to get involved with the project. Even with the incredible hype surrounding Metaverses, the creator economy for such metaverse projects is still ripe for the picking. The Sandbox has incredible incentives for artists and game creators alike to be involved through the grants offered by the Creator Fund and Game Maker Fund.

Alpha Pass

The Sandbox Alpha was a special multi-week event that took place between Nov 29^th – Dec 20^th. It offered players the chance to experience 18 game experiences created by The Sandbox Team as well as the chance to win 1000 $SAND and 3 special Alpha NFT ASSETs. While the play-to-earn aspect of the event was only available to Alpha Pass holders, everyone could experience some open-world gameplay in the Alpha HUB along with 3 full game experiences.

There was a total of 5000 alpha passes available that were distributed to the community for free via various contests.  While the first season of the Alpha has ended, the team seems to have plans for a potential second season. If you don’t want to miss out on the second season, make sure you’re glued to their discord and medium.

Future Sandbox Plans

According to the roadmap, the next on the list for The Sandbox seems to be the gradual opening of the Marketplace to public artists to create and publish their ASSETs along with the adoption of the DAO system. The Sandbox team also plans to host the first virtual concerts by Q3 of 2022. More events such as public LAND sales, launching of multiple gaming experiences across LANDS, more Partnerships and NFT collaborations, and launching of periodic play-to-earn events are planned for the end of 2022.

Future Plans via The Sandbox Gitbook

Conclusion

The Sandbox seems to be the strongest metaverse project with active collaborations and periodic updates and events. While it might seem all fine and dandy, the most troubling concern seems to be the lack of decentralization when it comes to the server hosting The Sandbox platform. The game is currently hosted on AWS and this leads to a single point of failure. Secondly, the platform and the Marketplace are currently on the Ethereum blockchain, with the recent spike in the gas costs for Ethereum it has become almost impractical for gaming projects to transact on the chain. Unless of course, you’re ETH rich. On a positive note, the team is considering a layer 2 for the marketplace in the future. Layer 2 solutions like Polygon and Immutable X will significantly lower gas costs and make the project much more viable to mass adoption.

The post The Sandbox Review: Have we missed the Boat?! appeared first on Coin Bureau.

Then before getting into this list if you aren’t familiar with Solana, I suggest watching Coin Bureau’s videos where Guy explains why some even call Solana the Ethereum killer. Also, as said there were so many good projects, I could have picked many more but since this is not meant to become a 200-page book I had to narrow it down to these 9. I tried to pick projects with a different use case to show how broad the ecosystem is and provide you with a few things for everyday use.

1. Audius

If Solana is dubbed the Ethereum killer, then here you have the Spotify killer. Audius is a decentralized streaming platform for musicians. Audius has incorporated a social media style approach and allows anyone to post music to start gaining an audience and interact with them. Audius is powered by the AUDIO token that has a market cap of almost $900 million at the time of writing. According to the Audius dashboard they have over 6 million unique users this month, up from just 1.8 million a year ago. 

I highly recommend taking a look at Audius. It’s a great example of how crypto can disrupt our current applications. Image via Audius.

I’m not going to go too much into detail since the team at Coin Bureau has done that and you can find an amazing video about Audius there. However, what’s interesting is that Audius started on Ethereum but has since migrated to Solana. This is because when Audius needed scaling Solana was reportedly the only one that could support this due to Solana’s low gas fees and speed. This shows the strength of the whole Solana blockchain when big name projects like Audius choose them. Audius even conducted extensive research on over 20 layer-1 and layer-2 scaling solutions before concluding that Solana is the best.

What makes Audius unique from anything we’ve ever seen is its creator friendliness. You might have read about how poorly artists on Spotify get compensated for their work. This isn’t a problem on Audius since artists can set their own payment model. It can be a subscription, one-time fee, or a combination of both. You can soon even set restrictions that your music can only be heard at a certain altitude or location, anything is possible. Then we’ve got the whole NFT side which makes up more opportunities to further engage the fanbase through Audius.

Here are some statistics about Audius. Image via Audius Dashboard

There’s so much to say about Audius and I really suggest you watch the CB video I told you about since I can in no way include everything in this short section. However, as a last piece of information, Audius earlier this fall made a partnership with the popular mobile application TikTok which further proves legitimacy and demand. So before continuing with this article maybe you want to go download the Audius app and put on some background beats. 

2. Raydium 

Next up we have a project which I’m sure many have heard of. Raydium is an AMM (Automated market maker, that provides many use cases. This is also the DeFi project with highest Total value locked (TVL) – currently $1.65 billion according to DeFi Llama ($1.8 billion according to Raydium). On Raydium you can access four different services, Trade, Yield, Pool, and AcceleRaytor. Many of these are self-explanatory but let’s go through them along with some benefits of Raydium.

This is what they have to offer. Image via Raydium.

Since Raydium is built on Solana it allows for much faster and cheaper transactions when compared to its Ethereum based competitors. However, what Raydium hasn’t managed to build is the best DEX for Solana which is why trades occur on Serum when using Radium’s swap and trade features. What’s great about trading on Raydium is that it has all the nice features of a centralized exchange while still remaining decentralized. These features include order books, charting, and even limit orders. The fees here depend on whether your order is filled through Raydium’s own liquidity pools or Serum’s order books, but they are from 0.22-0.25 %.

If you prefer passive income instead of trading, then you could try yield farming or liquidity providing. Yield farming opportunities on Raydium are great and there are many pools with high TVL while still offering yields of over 65%, not too shabby. When it comes to liquidity providing it’s extremely easy to do and you’ll be able to withdraw your funds at any time. Liquidity providers will earn a cut from the trading fees.

Here’s a look at the Raydium trading dashboard. Good looking and simple, just the way we like it. Image via Raydium.

Lastly there’s the Raydium launchpad. I’m not going to cover this in depth since there aren’t any upcoming projects and not that many which have been done. Second of all I’ll be covering a few launchpad projects later. However, if you use Raydium’s other services then I would keep an eye out for any interesting IDOs, they have hosted one for the much-anticipated metaverse project Star Atlas.

3. Serum 

Since I mentioned Serum in the previous section it’s only fair to cover it next. Serum is a DEX and provides the back end for multiple products on Solana. Serum enables projects to build applications using the Serum on-chain central liquidity pools. Using Serum’s order book guarantees great liquidity, low-costs, and speed. On top of that it allows developers to share middleware, which is extremely helpful. 

To learn more about the project I suggest you head to Serums website and read their docs . Image via Serum.

Serum isn’t anything you’re going to use directly. Instead it’s the ecosystem powering many of the projects you’ll use. These include the afore mentioned Raydium as well as Mango Markets, Oxygen, Star Atlas, Solrise Finance and many more. Why Serum has managed to become so successful might have something to do with its creator. The person behind the project is FTX exchange founder Sam Bankman-Fried. Serum also has investments from many big names including Alameda Research, and Multicoin Capital. Nowadays Serum is governed by its own token SRM and a DAO.  

4. Star Atlas

This is a project that I’m not going to go too much into detail on since we’ve already covered it in depth in our great article on blockchain gaming gems. However, since I’m someone who prefers to play some video games when taking a break from crypto rather than watching Netflix, I got really excited when reading about this project. Long story short, Star Atlas will be a game incorporating all the benefits of crypto and NFTs to create a full digital ecosystem where you’ll be able to choose your path and play like it’s your real life.

Why I said “going to be” is because currently it looks like the full game launch is years away. However, to make the waiting more pleasant they will be launching the game in small pieces which will enable you to play some parts of the game and maybe get a head start on others. Also, you can already trade both the Star Atlas token as well as Polis which is going the be the governance token, and even some in-game items as NFTs.

The graphics are amazing! Take a look at this trailer. Image via Star Atlas YouTube

Hopefully, this project will live up to expectations since a game like this would not only revolutionize blockchain gaming but gaming in general. There’re even rumors that when battling in the game you can lose your battle ships or other loot as they will be NFTs. Also, if you look at the trailer I linked to you’ll see that the graphics and the feel of the game is honestly one of the best I’ve ever seen. So, if you’re a fan of games I suggest you keep an eye on this project and try to get gaming early since I believe Star Atlas has some insane potential if they can live up to expectations.

Besides Star Atlas there are many other great games on Solana. A few more popular titles include Aliens VS People and the upcoming Genopets. It’s no coincidence that many upcoming games are based on Solana. To my understanding, as with Audius, the devs at Star Atlas did extensive research on where to build the project only to conclude that Solana is the only one capable of meeting the demanding needs of Star Atlas.

5. Tulip Protocol 

After losing all your battleships in the Star Atlas universe it might be wise to come back to the ground and look for some income possibilities. For this yield aggregators might come in handy. Tulip Protocol is the yield aggregator on Solana with the highest TVL at just over $800 million according to DeFi Llama. Tulip has partnered with Solana Foundation, Raydium and Serum.

Here’s a look at some yields on lending offered by Tulip. Image via Tulip Protocol.

Tulip offers vaults and pools from three different protocols that are from Raydium, Orca, and Saber. The yields here are good and astronomical if you go for leveraged yield farming. BUT, as always when you hear the word leverage you need to be careful although it says that the highest APY is 8000% you can’t be entering without knowing what you’re doing. So, this introduction to Tulip was quite short but those that are into yield farming I would suggest Tulip as the go to place on Solana.  

6. Maps.me 

This is a project that’s downloading on my phone as I’m writing this. Maps.me provides both online and offline maps, and after an update and a $50 million funding round led my none other than Sam Bankman-Fried they now support DeFi. Maps.me isn’t a new project but after integrating DeFi by building on Solana and Serum it has enhanced the user experience. They have over 140 million downloads and 60 million users.  

Currently the Maps.me wallet is in restricted beta mode which means not everyone can start using it. However, the plans are to create a full travel service where you can easily book hotels, restaurants, museum visits, and even pay for your coffee. For merchants this is great since their fees are lower than what is traditionally charged, and the wallet will support over 35 different currencies. For consumers it will make traveling a lot easier since you’ll be able to use the app for everything you need. On top of that there will be a way to directly lend your funds to earn yield as well as earning cash back on purchases made. Maps.me will be governed by the Maps token and 100% of earnings will go to token holders. These earnings will not only include transaction fees but also advertising earnings, meaning merchants can advertise on the platform and you as a holder will benefit from that. 

A look at some of the benefits up Maps.me Wallet. Image via Maps.me.

On top of the cut holders earn from earnings there will be additional rewards levels you can access by holding a certain amount of the token. These rewards will include higher cash back and discounts to selected merchants and partners. So next time you go traveling make sure to check out Maps.me and not only to find your way around the city in offline mode but also to get some sweet cashbacks and make your traveling seamless.

7. Bonfida 

Here’s another project built using the Serum DEX. Bonfida advertises itself as the graphical user interface of Serum. Bonfida allows trading using Serum, trading bots, perpetual swaps, name service, and an API to get access to data from Serum. This project is backed by some heavy names including Alameda Research and Three Arrows Capital. They have a daily transaction volume of about $70 million and an all-time volume of $12 billion.

Visit Bonfida.org if you want to learn more. Image via Bonfida.

I picked this project because I think some of you might be interested in the trading bots and also the naming service. When entering the trading bot site, you can find a few existing strategies and also see their performance. For those who like to create their own bots that should be easy since Bonfida supports TradingView. The naming service might be interesting, especially after the ENS airdrop. However, don’t expect a similar since Bonfida already has its native token which I’ll talk about in the next section. If you like the Solana ecosystem and want a custom domain, then to my understanding Bonfida is the go-to place.  

This is the pool where Bonfida is burned and there you have the total amount burned. However, the Fida token isn’t available for US residents. Image via Bonfida.

As mentioned, Bonfida has its native toke called Fida. Fida is used for governance as well as staking. Staking rewards will come when Fida fees are collected and then burned. More clearly explained, all fees gathered will go to a pool which can only do two things, buy Fida and burn Fida. I’m not completely aware how this works but essentially anyone can choose to burn Fida when there’s available Fida in the pool and of that burnt Fida 10% will go to stakers. When staking Fida you’ll also gain access to the API as well as advanced analytics.

8. Solanium

If the projects so far have sounded good and have gotten you to trust the Solana ecosystem even more perhaps you’d like to know how you can get in on the next hot project early? For this we have launchpads and perhaps the best one currently on Solana is Solanium. Solanium has so far completed multiple IDOs where the smallest return (measured from ATH) is currently 1.43x while many projects have returns of 100x and even 200x. Now these returns might make your mouth water so let’s go over how the platform works.

This is Solanium. Image via Solanium.

Solanium has a native token called Slim and in order to participate in IDOs you need to be staking these tokens. When you stake Slim, you’ll be receiving xSlim and the amount you receive depends on how long you lock up your staked tokens. The default is to lock up for 365 days which will get you the same amount of xSlim as you have Slim. If you choose to opt for a shorter lock up period you will receive less xSlim. The system has 5 different tiers depending on the amount of xSlim you have, the two highest tiers provide you guaranteed participation in IDOs while the three lowest tiers only get you certain amounts of lottery tickets. The tiers require the following amounts of xSlim:  

Tier 1 – 100 – 1 lottery ticket 

Tier 2 – 1000 – 12 lottery tickets 

Tier 3 – 5000 – 100 lottery tickets 

Tier 4 – 10000 – Guaranteed allocation 

Tier 5 – 50000 – Guaranteed allocation 

The price of Slim at the time of writing is $2.65 so you can do the math on how much each tier will cost. Naturally, getting a higher tier will help you since there are lots of demand for these projects. Of the current active projects three out of four have over 100,000 people interested. The price action of Slim has been quite good with a 5x increase since it began trading in June 2021. 

Some active, upcoming, and finished pools for those of you who are interested. Image via Solanium.

Another launchpad project worth looking into once it launches is Solstarter. It’s backed by Alameda Research (as apparently is every project on my list) and a few more institutions. Solstarter will be launching in Q1 of 2022 and be fully in operation in Q3 of 2022. What differentiates Solstarter is that it’ll be completely lottery based.  

9. Media Network 

This is a project which I hadn’t heard about earlier and it actually came across my radar by accident when I was looking at Solanart which is the biggest NFT marketplace on Solana. But as it turns out, they are powered by Media Network. So, what is it? 

Here are some of the Benefits of Media Network. Image via Media Network.

Media network is a decentralized content delivery network (CDN). As the name implies CDNs deliver content from databases to the users to make it faster and better quality (I’ll leave a picture and explain it down below). This can be done from all storages and all of you reading this know that we have decentralized storage services like Arweave, IPFS (Filecoin), and BTFS (BitTorrent). However, although projects like Audius use these (Audius uses IPFS) they need a centralized CDN in order to distribute their content fast and in good quality. Currently Audius uses Cloudflare which is controlled by Amazon. That means that using IPFS doesn’t solve the problem of centralization and that’s what Media Network is trying to solve by being the first of its kind.

This how the CDN tech works. You can probably guess that when decentralizing it those CDN servers will be run by the Media community and they will be rewarded in Media token for their bandwidth. Image via Media Network Whitepaper

On Media Network itself anyone can start streaming which means it’s both a consumer platform as well as a protocol that can be integrated to an existing project. Currently Media Network has integrations with a few projects including Livepeer which I’m sure many are familiar with, and Handshake that provides a naming service. Also, as mentioned Media Network powers Solanart. For those interested in NFTs I’ll tell you a bit more about Solanart.

Solanart is the biggest NFT platform on Solana and given the recent growth of the sector it wouldn’t be fair not to talk about this. Currently most of the famous NFT projects are minted using Ethereum but the growth of other blockchains hosting NFTs can’t be ignored. The Ethereum gas fees can get so high that many are reluctant to participate in launches. That’s why projects are looking for other blockchains and Solana has proved to be a great alternative. We have already seen many projects on Solana like Degenerate Ape Academy which can be traded on Solanart. I’m sure that as time passes more and more projects will deploy on Solana to avoid paying expensive fees. Solanart’s daily volume is already over 7000 Sol, that’s a lot. The whole site and marketplace is also great and I really like the feel to it. 

Bored Ape or Degenerate Ape? Image via Solanart.

Lastly, to wrap up Media Network I thought I’d mentioned that it’s governed by the Media token holders. The Media token is also used for transactions on the network and that means projects wanting to use Media Network will need to purchase the token. When it comes to who’s backing the project I think you can already guess, yes you guessed it, Alameda Research.  

Conclusion 

There’s no doubt that Solana is a real competitor to Ethereum. When doing research for this article I came across so many interesting projects that could have been mentioned in this piece. As I mentioned in the beginning, what I tried to do was pick projects from different sectors and with different use cases. That’s why I can’t guarantee you that these are the “best” projects but they are good projects. Some projects left out of this list which if you’re interested in the Solana ecosystem are worth checking out are: Oxygen, Orca, Solrise Finance, Mango Markets, and to be real, many more. 

Furthermore, I must remind not to confuse a good project with a good investment. Being on this list doesn’t mean they would be on my list for best projects to invest in. That’s because there are many things that determine whether a project is a good investment or not, one of them being valuation. Is a market cap of over $200 million correct for a game which is years away from launch. I can’t answer that since it’s for you to decide but for me the risk/reward ratio doesn’t seem attractive. However, that doesn’t mean that the project isn’t amazing and that I wouldn’t want to play the game the second it’s released.  

Lastly, I feel the need to tell that while I’m not currently holding any of the projects on this list, I do hold the Sol token which might make be a bit biased when talking about the whole ecosystem. Still, I hold other layer 1 projects too and feel that Solana is a great project that will grow fast in the coming years. That’s already seen just look at the number of projects (good projects) out there.  

The post Top 9 Projects In The Solana Ecosystem: Huge Potential! appeared first on Coin Bureau.

The following piece describes the top 7 Solana wallets:

1. Phantom
2. Solflare
3. Sollet
4. Atomic Wallet
5. Exodus Wallet
6. Math Wallet
7. Ledger Wallet

Solana has officially flipped Cardano Image via Coingecko.com

In the meanwhile, plenty of projects on the Solana ecosystem beckons you on a shopping spree of sorts, whether it’s to stake them or use them for buying NFTs or playing games. While you’re taking your sweet time to decide what to do with the tokens, they need to be in a snug, warm and safe wallet to rest themselves in before some of them gets sent out to be put to work. Better still if the wallet allows staking, like the hotel that’s internally connected to the mall. They’ll never be exposed to the inclement weather when going to work!

Assuming you haven’t found a nice home for them yet, maybe this article would be able to help you in your house-hunting mission. Even if the tokens have moved in, a leaky roof or a drafty window might want you to send them packing to a better abode. Or you could even be like me: find the house first before buying the tokens. Right then, let’s proceed onwards.

A wallet loved by the Solana community Image via Google Chrome store

1. Phantom

The Phantom wallet is a native Solana wallet designed exclusively for the Solana ecosystem. It is non-custodial, ie you safeguard your own assets and be your own bank, and works on known browsers such as Chrome, Brave (crypto-friendly with a Chrome base), Firefox and (Microsoft) Edge. The design is user-friendly, clean, and simple. Don’t be fooled by its simplicity because it packs a number of features:

• Swap tokens with instant prices and low gas fees through its integration with Raydium, Solana’s version of Uniswap. Tokens supported include: SOL, USDC, USDT, ETH, BTC, renBTC. Transaction fee is 0.85%
• Store your NFTs and collectibles in a separate section in the wallet. It’s worth noting that NFTs listed on a marketplace will not show up here. These NFTs are placed in an escrow account until they are sold or delisted.
• Integrates with the Ledger cold wallet to provide added protection for your SOL.
• Stake SOL within the wallet by selecting a validator to stake your tokens with. The APY usually ranges from 5-6% for the majority of them with a handful falling below 5%.  Staking is like lending someone your tokens. You still own them while they are being staked.
• Supports SPL tokens that are used in Solana’s DeFi applications. These tokens are like the ERC20 tokens in the Ethereum blockchain.

There are a few things to take note of that may or may not be a risk:

1. The FTX exchange is closely-tied to the Solana blockchain. As such, there is a direct link between it and the Phantom wallet. This is in the Deposit section where there is a special button for depositing SOL directly from the exchange. Otherwise, you can also fund the wallet through other means.
2. The password phrase for the wallet is a 12-word seed phrase. Most wallets use a 24-word seed phrase. More words equal higher level of security.
3. The wallet only exists in the form of a browser extension. There is no desktop or mobile version as of now.
4. Raydium is the only exchange used for swapping tokens so the prices are limited by the amount of liquidity in the exchange. There is talk that Phantom may support other exchanges in the future.
5. It allows all tokens in the wallet to be staked without accounting for the transaction fees that could arise. This puts users in the situation of having to add more tokens in order to unstake in the future.
6. Popular validators is listed first by default which may be more expensive validators while the more rewarding ones are down the list. Users need to really do their homework first before deciding on which validators to stake with.

The other popular Solana wallet Image via Chrome Google Store

2. Solflare

Developed by Solana Labs, Solflare is one of the first wallets designed for the Solana ecosystem. Its popularity is neck-and-neck with Phantom and it bests Phantom in supporting more platforms. Aside from the browser extension, it also has its own web and mobile app, giving it added convenience for those on the go.

The wallet has identical functionality with Phantom when it comes to swapping tokens, storing visual and audio NFTs, integrating with Ledger for extra security, and staking SOL. However, it also has a few twists of its own:

• When it comes to swapping tokens, this works on the web application and browser extension but doing it in mobile is something that is only available in the future.
• An upcoming integration with the Solrise investment platform allows users to manage their investment funds through the wallet. This is quite a handy feature, especially considering that both products are built by the same team.
• Unlike the 12-word mnemonic phrase used by Phantom, Solflare uses a 24-word mnemonic phrase, making it a more secure option.
• Its staking function prevents the user from staking 100% of their tokens, accounting for the inevitable transaction fees accompanying this action.

Based on the points above, I would say that Solflare is more suitable for those looking to get more out of a wallet than just the basics. The team behind it is as solid as it comes, which means that the wallet is fairly secure and there is strong support from the community on Discord.

3. Sollet

There’s another project in the Solana ecosystem known as Project Serum. a decentralised exchange that is also quite popular with Solana users. That team created the Sollet wallet to provide support for the usage of the DeX. Available only as a browser extension, Sollet also distinguishes itself by proclaiming that the wallet is designed for advance users and developers. It’s very clear on its target audience, which I see it as a good thing.

The wallet that’s not for everyone Image via Sollet.io

One key feature that makes Sollet stand out from the other two, other than its direct integration with Serum, is the ability to hold ERC20 tokens. This is something neither Solflare or Phantom are able to do. The wallet offers a lists of tokens to add through three categories:

• Popular Tokens – these are the tokens most used in the Solana ecosystem such as Serum (SRM), MegaSerum (MSRM), Bonfida (FIDA), LQID, KIN, MAPS, RAMP, Raydium (RAY) and Oxygen Protocol (OXY). Other popular ERC20 tokens such as wBTC, wETH, USDT etc can also be found here.
• ERC20 tokens – if the ERC20 token you’re looking for isn’t in the category above, you can add them manually in this section by keying in the ERC20 token contract address.
• Manual Input – these tokens are custom SPL ones where the project might be really new (hopefully not a scam), and not yet widely-used.

Adding each type of token costs a fee of 0.002039 SOL per token type. While it may not be much, it does add up. Be sure you have some SOL in the wallet before you start adding.

Just like Solflare, Sollet also uses the 24-word mnemonic seed phrase format, which gives it strong security. For additional security, link it up with the Ledger hardware wallet. It also allows staking for SOL and SPL tokens. Due to its integration with Serum, the user can also farm SPL tokens through Serum. However, many of these projects are quite new so farm at your own risk!

Depending on how comfortable you are with using wallets, Sollet can be an option. But if you don’t need the ER20 tokens or won’t be doing much with Serum, then one of the other two wallets are probably good enough.

Aside from the native Solana wallets covered, there are also 3rd-party wallets that also support Solana and allows for staking too. If you like to have “one wallet to rule them all”, you can consider any of the ones below:

4. Atomic Wallet

One of the more established 3rd-party wallets in the crypto community is the Atomic wallet. It offers support for more than 300 cryptocurrencies together with staking options for many of them, including SOL tokens. Just like with the native ones, you can choose a validator and stake your SOL with them. However, if you choose to stake with the Atomic validator node, you can get a tempting 7% as a reward, higher than the 5-6% one usually gets with validators.

Stake SOL with Atomic for above-average rewards Image via atomicwallet.io

3rd-party wallets like Atomic also has on-ramp capabilities. This means you can use your credit card or wire transfer to buy crypto from the wallet and have it be sent there. This makes it easy for newbies to get into the crypto game. The rates may be a bit steep but not unbearable. Not all tokens can be purchased directly with fiat money though, including SOL. To get SOL into Atomic, you will need to buy some other token like Bitcoin or Ethereum with your credit card, then exchange it for SOL within the wallet.

Atomic offers a variety of platforms, ranging from desktop applications for PC, Mac and even Linux (via Ubuntu) to mobile apps, there’s a version for everyone. But not everything is peachy with them. Here are some of the risks:

• Only a 12-word seed phrase is used. Not the best in security.
• NFTs cannot be displayed in the wallet.
• No support for SPL tokens (yet).

There are some Reddit comments about tokens disappearing or frozen, ie cannot be accessed, especially during peak times. While the comments could be from a minority, it still pays to be cautious as it could happen to you.

5. Exodus Wallet

Another popular 3rd-party wallet is Exodus wallet, which you can read more about it here. When it comes to staking SOL, unlike the other wallets where you can select validators, Exodus defaults to its own validator, known as Everstake, which yields a 6.1% APY reward. There is also a warmup and cool down period that comes with staking SOL.

Similar to Atomic, the wallet comes in a variety of platforms for desktop (Mac, Windows, Linux) and mobile. For hard wallet integration, it differs from the rest by integrating with Trezor instead of Ledger. Good news for Trezor fans if you’ve been shopping for a hot wallet to work with your cold one.

The Exodus wallet allows users to exchange crypto tokens through its integration with the Shapeshift exchange. Word on the street is that using it to exchange for small sums is ok but be careful of larger amounts as it might get “lost”.

Another place to stake your SOL through Exodus wallet Image via Exodus

For FTX members, you can also use Exodus wallet as a kind of extension from FTX. You will need to sign in separately to access your FTX account when you get the FTX app through the desktop version of Exodus. There is the added convenience of being able to view your FTX portfolio together with your Exodus holdings in the same screen.

Some of the risks of using Exodus relates to security:

• It uses a 12-word seed phrase, which again, not as secure as the 24-word version.
• No 2FA is required. The user is advised to backup the wallet’s keys for more security.

If you don’t demand too much from your wallet, Exodus is a good option to consider. As with most hot wallets, small amounts are relatively safe but nothing large to prevent unexpected disappointments.

6. Math Wallet

Slightly less well-known than the other two but by no means a laggard is Math Wallet. A multi-platform wallet (mobile, desktop, browser extension, hardware integration with Ledger) with cross-chain support for more than 86 blockchains, it also has:

• Math DApp – a DApp store that allows users to interact with the services built on the major chains through the wallet.

Have fun with the various blockchain projects through the Math DApp store Image via MathDApp

• MathVault – where staking and DeFi activities take place, including staking SOL. The general APR rates advertised could be up to 30% (although it didn’t say which tokens would yield that kind of rate). They also encourage participation by:
  • Issuing MATH tokens as rewards. These tokens can be used throughout the MATH ecosystem.
  • Friend referral program earns the referrer an extra 20% from the friend’s earnings.
• MATHGas – track the gas fees of major chains through this app.

While the highlight of this piece is about wallets that are good for staking Solana and general usage, it’s clear that MathWallet aims to be much more than just a 3rd-party wallet service. With the variety of services offered, it’s very interested in corralling users into its own fold and keep them engaged as much as possible.

The main risk associated with this wallet is that it’s custodial, meaning you don’t own the private keys to the wallet.

7. Ledger Wallet

Whether you choose to use Ledger as your main wallet and stake through the extensions available or using a hot wallet with Ledger providing additional security, you can’t go wrong with this industry-standard fully non-custodial cold wallet. The Ledger Nano X is the most entry-friendly in terms of pricing but it still packs a decent punch. The Ledger Live app comes with the hardware purchase and is easy to use, which I can attest to since I use it myself.

As far as safety goes, it’s one of the best out there with a 24-word seed phrase acting as the gatekeeper plus a regular password for protection. The list of Solana validators are also available for staking selection. The only downside is that you would need to pay money for it. The others are all free of charge. However, given its capabilities, it’s as close as having your own bank. I’d say $100 – $200 is a small price to pay for owning a bank. Don’t you think so?

Conclusion

Given the number of wallets we’ve covered, I thought I’d make it easy for you to with the comparison chart below:

An easy-to-view chart for comparison

Having given these wallets the once-over, I’d say that any one of them works well, depending on your needs. If you’re only focused on getting the most out of your Solana, then a native wallet might be the way to go. If safety is your number one concern, you can’t get any safer than a cold wallet. If Solana is not your main focus and you like having your fingers in as many pies as possible but not the hassle of owning one wallet per token, the 3rd-party ones serve their purpose well.

In crypto, participation is the name of the game. Whatever you do, as long as you’re doing something within the range of risk you’re comfortable with, that’s all that matters.

The post Top 7 Solana Wallets: A Home for your SOL Tokens appeared first on Coin Bureau.

With literally no idea what Web 1.0 or 2.0 were, wondering if I had missed out on something important, sort of like accidentally stumbling into Lord of the Rings 3 without witnessing the magic of the first two, the FOMO was strong in me and I knew I had to do some digging to learn more. So, if you are in a similar position wondering just what all this talk is about “Web 3.0,” and if it is all making about as much sense to you as trying to watch the Elf scenes in LOTR without subtitles then you have come to the right place as I am going to break it all down here and get everyone all caught up and up to speed.

History of the Web

When people talk about Web 1.0, 2.0 and 3.0 it is important to make a distinction that there are about as many different explanations, understanding and definitions of these terms as there are people who use them. It is sort of like if you walked up to 100 different people at a Crypto conference and asked them what cryptocurrency means to them, each person is going to give a different answer which is personal to them. There is no universally agreed on, nor “one size fits all,” description for these terms.

What is Web 1.0?

To understand Web 1.0, we need to crank the clocks way back to the inception of the internet itself. Believe it or not, the internet was created for a completely different purpose than watching cat videos, shopping and reading memes as we use it today. The origins of the internet begin with the Defense Advanced Research Project Agency (DARPA) in the United States in 1969, where some of the most brilliant minds from across the globe came together to work on what was initially conceived as a military communications project. The early internet was mostly comprised of web pages that were joined together by hyperlinks, mainly text only without any visuals and the pages were “read-only,” without the ability to interact with anything in any significant capacity. Essentially, the early internet was basically just a giant depository of ebooks.

Web 1.0 became an incredible resource for the sharing of information, with early government branches, research laboratories, educational facilities and institutions accessing web pages and sharing information as they were able to connect via commercial servers. People would mainly log on just to read about things as there was no read/write functionality and much of the content populating the internet was generated offline first before being uploaded and shared. It wouldn’t be until a few years later where basic chat functionality through a bulletin board system (BBS) would be implemented allowing for the interaction between users.

Eventually, dynamic URLs and further innovation and advancements would evolve the internet and its capabilities, transitioning Web 1.0 to 2.0. The transition between these webs was a gradual process that took place over time as new features and functions were added on top of already existing infrastructures so there is no clear definition or time frame for when Web 1.0 officially became Web 2.0. One tidbit of information that I found interesting, feel free to bust out this fun fact at your next cocktail party to impress most likely nobody, is that advertising was actually banned on Web 1.0 and it would be years until any advertisements at all were allowed to exist on the internet. Difficult to imagine that today.

What Websites Looked Like During Web 1.0 Image via The Finanser

What is Web 2.0?

Web 2.0 is where things get exciting and is basically the internet as we know it today, featuring our favourite shopping websites, video streaming platforms, Crypto articles, video games, social media sites, you name it! A simple example that helps visualize the transition from Web 1.0 to 2.0 can be explained through an example of what it would have been like for an eCommerce store. An eCommerce store built on Web 1.0 would have been like a shopping magazine with some basic images and text that a user could scroll and read through but that would be about it. Web 2.0 is what enabled all the additional integrations and features like being able to add items to a shopping cart, check out, pay by credit card, and leave a review for others to read. Web 2.0 would also bring about the revolution of user-generated content in which everyday end-users such as you or I could create things and have them posted to the internet such as this article, or those embarrassing and cringy Facebook posts from back when we were in high school. Who reading this remembers MySpace?

The concept of Web 2.0 was coined by web pioneer Dale Dougherty, an O’Reilly VP (the media company, not the auto parts store) in 2004. Web 2.0 is often referred to as the “Social Web”, “Wisdom Web”, “People-Centric Web”, “Participative Web”, and “Read/Write Web” as this would be the first time that humanity could share information on a global scale and easily socialize and pass wisdom, (or cat videos) to anywhere in the world nearly instantaneously. This era ushered in user-generated content on a scale that was never before possible with things like blogging, video sharing, chatting, voice messaging, emails and social media posts. The “Social Web,” reached mass scale adoption quicker than any other technological advancement in history and would hold that claim until Bitcoin would come along a number of years later.

One of the key driving factors behind the development of Web 2.0 was the creation of new generation Web-related technologies. Ajax, JavaScript, Cascading Style Sheets (CSS), Document Object Model (DOM), Extensible HTML (XHTML), XSL Transformations (XSLT)/XML, and Adobe Flash which provided users with an immersive and entertaining way to interact with websites. Much like the gradual transition between Web 1.0 to Web 2.0, we are already in the middle of the transition to Web 3.0.

Basic Example of one of the Differentiating Factors Between Web 1.0 and 2.0 Image via Myeltcafe

What is Web 3.0?

The concept of Web 3.0 isn’t exactly new as early pioneers who were present from the transition from Web 1.0 to Web 2.0 had the foresight to know that the evolution to Web 3.0 would eventually happen, just as even now there are already early discussions about Web 4.0 and 5.0 though we have barely broken into Web 3.0. The first concept of Web 3.0 comes from Bernes-Lee, a British computer scientist who is credited with the invention of the World Wide Web, coining the concept of Web 3.0 all the way back in 1999. As Web 2.0 is often referred to as the “Social Web,” Web 3.0 is often referred to as the “Semantic Web.”

Bernes-Lee had a vision that the Semantic web would be capable of analyzing all the data on the internet, allowing machines to handle many tasks without human intervention. Much of the capabilities that Lee had imagined the internet would develop back in 1999 have already come to fruition, though a more recent denomination for what Web 3.0 would comprise of came to light in 2006 by John Markoff of the New York Times. Instead of the “Semantic Web,” Markoff would refer to Web 3.0 as “The Intelligent Web,” and would state that it would have 5 characteristics.

The 5 Characteristics of the Intelligent Web:

1. Semantic Web – Web 3.0 goes beyond focusing on keywords and numeric values so that it understands content like photo, video, or audio and more complex associations between products, locations, and specific behaviours.
2. Artificial Intelligence – Artificial intelligence software is able to decrypt natural language and understand intention. It can also recognize real from fake and provide more reliable data.
3. 3D Graphics – The third generation of the internet should integrate the use of 3D graphics and VR technologies to provide results regarding real-life places, diverse products, and objects of interest.
4. Connectivity – Within web 3.0, information is more connected through semantic metadata, leveraging all the available information.
5. Ubiquity – Data silos are eliminated. Every device should be connected to the network and content is operable by different applications.

It is quite clear that all five of those characteristics are currently evolving and shaping the internet as we know it. Technological advancements are happening in each of those areas to create a more advanced version of the internet from the one we use today.

Differences Between Web 1.0, 2.0 and 3.0 Image via geeksforgeeks

One of my favourite descriptions of the internet was explained simply as being the entire combined knowledge of humanity accessible to everyone. Web 3.0 promises to establish this information in a more reasonable way than is currently possible with the limitations that exist within the current engine schema for companies such as Google. Web 3.0 necessitates the use of declarative ontological languages like Web Ontology Language (OWL) to produce domain-specific ontologies that machines can use for intelligent reasoning; making conclusions and not just matching keywords, enabling machines to process content in a more humanlike way.

Microsoft is Advancing Virtual Reality, Augmented Reality and the Metaverse Bringing Web 3.0 to Mainstream Adoption. Image via Microsoft

But what does Web 3.0 have to do with Blockchain Technology and Crypto?

For the first time in human history, Blockchain technology provides a reliable mechanism that is based purely on clearly defined and indisputable mathematics rather than erroneous, frail and emotionally biased human nature. This allows for the trust and integrity behind the critical systems and functions that run our daily lives. We already trust calculators over our own mental arithmetic capabilities, Blockchain is kind of like that, but for many other and higher impact areas of our lives with use cases ranging across all industries such as finance, health care, supply chain logistics, gaming, farming and agriculture and more. Blockchain technology is already being interwoven into traditional Web 2.0 with an entirely separate Web 3.0 framework being built on networks such as Ethereum.

Evolution of the Web. Image via medium.com/fabric-ventures

The rise of technology such as distributed ledgers and Blockchain allows for data decentralization and an environment for transparent, verifiable, tamper-proof and secure data transmissions and transactions. Blockchain integration into Web 3.0 will allow for the ability to overcome Web 2.0’s current issues with centralization, surveillance and exploitative/manipulative advertising, while also providing the framework to support a decentralized infrastructure that will have the ability to displace centralized tech giants, meaning that individuals will be able to rightfully own their own data.

Some of the Advantages of Blockchain and Distributive Ledger Technology. Image via medium.com/kalyanicynixit

If Web 3.0 adopts and utilizes Blockchain technology and infrastructure in a decentralized manner on a mass scale, this will enable individuals to be truly sovereign, owning and controlling who profits from their time online. A decentralized web will allow users to dictate how they wish to be compensated for their time and data, removing the previous, less than ethical practices from tech giants who are profiting, making billions each year off the exploitation of user data.

We are already seeing early progress in this area with the millions of users (myself included) who have migrated browsers from Google Chrome to the Brave Browser which incorporates elements of Web 3.0 and Blockchain capabilities which allows users to be compensated fairly for their time watching adverts or can choose to turn off tracking cookies and advertisements altogether, freeing them from the surveillance and manipulative practices of tech giants.

Brave Browser Takes the Stalker-like Behaviour out of Web Surfing. Image via bitpartikel

It is important to clarify that Web 3.0 does not automatically mean decentralization, and there is going to be a serious uphill battle if this utopian dream shared by millions will make it to fruition.

Web 3.0 and Decentralization

As I mentioned earlier, Web 3.0 and Blockchain technology are often used synonymously which can be misleading and not exactly accurate. There is nothing in the technological framework of Web 3.0 that states that it has to be built on, nor utilize Blockchain technology at all. Though I think it is a fair assumption that Blockchain technology will continue to further develop, be integrated into, and play a massive role in the advancement of Web 3.0 as we have already seen happen across many industries.

Web 3.0 Networks Such as Ethereum Have the Ability to Decentralize Pretty Much Every Industry Image via prsarahevans.com

This brings us to another disconnect in understanding and that is that many people assume that Blockchain technology automatically means decentralization. Many people are currently under the incorrect assumption that Web 3.0 + Blockchain technology = decentralization, which is not the case. On the contrary, it could actually lead to the complete opposite!

While many of us appreciate that Blockchain technology has the capability of creating a decentralized, true peer-to-peer framework, the opposite is also true. Blockchain technology can also lead to the opposite of freedom and decentralization and lead to authoritative control and centralization on steroids! This is why one of the biggest concerns in the Blockchain space is a government-backed and controlled central bank digital currency (CBDC). Be sure to check out Guy’s video on why this is such a dire concern that is shared by many. This brings me to the next segment, and that is, “the problem.”

Industries That are Leading in Blockchain Adoption. Image via The Blockchain Academy

Why the Push for a Decentralized Web 3.0?

While Blockchain does have the ability to free us from authoritarian regimes and tech giants that monitor and manipulate every aspect of our online presence, it also has the capability of putting us under the thumbs of governments more than ever before. If the government decided to do away with cash and only utilize a central bank digital currency or adopt a centralized internet infrastructure, they could have full control over every penny that goes into your bank account, monitor every penny that leaves your bank account, track every single purchase you make, or website you visit. In an extreme but possible scenario, they could even have full control over what information a nation is allowed to access on the internet or control the entire monetary supply. Sounds like a world that I would certainly not want to live in. Starting to sound like George Orwell’s 1984 to anyone else?

“Big Brother is Watching You” George Orwell’s Terrifying Classic about Government Manipulation and Control in the famous novel 1984. Image via massacinzentadotblog

Many people may be reading this thinking, “oh well, I don’t do anything illegal nor have anything to hide,” but it isn’t just about legalities. This could give the government the power to restrict basic freedoms that we take for granted. You want to attend a protest or speak out about something you believe in? Well, the government could step in and block funds from your account for a month for something as little as not liking your political post on social media. What if they decided that every adult can only have two pints of beer a week? (Tragic!) They could automatically block payments to any alcohol-related purchases. If they controlled centralized access to the internet they would surely block an article like this from being written and block you from reading it, suppressing free speech similar to what we have already seen on a mass scale in North Korea and China. Have I painted a dire enough picture yet? I think you get the point.

As if that isn’t enough of a reason to push for a decentralized Web 3.0, as I have already briefly touched on, many of the exploits of tech giants are downright creepy and unethical, damaging society by furthering social divides between opposing viewpoints, and manipulating outcomes of major events such as political elections and Brexit. Big tech companies have overstepped their boundaries and these perversions affect all of us, with many articles now being released on how social media giants are exploiting and undermining democracy. There have been some very insightful and deeply disturbing documentaries come to light recently that show how people are essentially being used as livestock, being manipulated and exploited by big tech companies such as Facebook, Google and Amazon. Companies like Facebook, (who also own Instagram) have been discovered secretly sharing and selling our private information to third parties for various reasons such as creating psychographic profiles on users to influence political campaigns and being sold to marketing and advertising companies so they can leverage that information to target us for advertising.

Social Media Giants Leaked Private Information Misleading Popular Opinion and Influencing Outcomes for Brexit and Political Elections. Image via Cnet

These unethical acts by the likes of Facebook have seen the company land in hot water and in the courtroom on multiple occasions. Facebook has been accused of, and have stood trial for some of the worst crimes that exist in our society. I’m talking big ones like propagating hate speech that fueled genocide and war crimes in Myanmar and being accused of human rights abuse, driving multiple “Anti Facebook,” movements globally. If you have not yet seen the documentaries, “The Social Dilemma,” or, “The Creepy Line,” about how social media and tech giants are manipulating society, I highly urge you to watch them and understand the dastardly deeds and intentions of many of these companies that we interact with daily. Try and watch them without throwing your computer out the window out of fear, disgust, and anger, and then you will understand why decentralization is so important.

Google Has the Power to Manipulate Political and Economic Outcomes. Image via usnews.com

As we are finding out more and more about the shenanigans behind some of these tech giants and how we are being manipulated, people are understandably furious and are looking for an alternative. These realizations are resulting in just one of the driving factors towards this revolution and adoption of a decentralized Web 3.0 built on Blockchain technology.

Current Implementations of Web 3.0

As I mentioned earlier in the article, Web 3.0 does not necessarily mean Blockchain technology integration, but for the remainder of this article, we will be working under the assumption that the two will be further developed together and working hand in hand, and each mention of Web 3.0 should be assumed that it will have Blockchain woven into the framework of the internet. Blockchain technologies such as Bitcoin, or more so, Ethereum are already providing the early, basic framework needed for Web 3.0 and we have seen many use cases already implemented and built on this technological innovation. Remember how the Internet was the fastest adopted technological innovation of all time? Well, the trajectory of crypto and blockchain adoption is surpassing early internet adoption meaning it is already here in many forms and will likely continue its exponential growth into the daily lives of internet users everywhere.

Cryptocurrency Adoption is the Fastest in Human History, Finding its way into Finance, Healthcare, Social Media, Video Streaming Sites, Food & Agriculture, Pretty Much Every Industry! Image via Chaindebrief

Finance is the largest industry in which Blockchain technology has made a massively disruptive impact and for good reason. With countless scandals and dirty dealings that have existed in traditional finance since the inception of a monetary system itself, Blockchain technology and Web 3.0, thanks to networks such as Ethereum have provided a framework that is replacing the trust that has been lost in the traditional finance space, helping eliminate corruption, reducing costs and increasing efficiency by rebuilding financial applications that can potentially replace all the legacy services that currently exist across the entire financial space.

DeFi is Providing a Long-Overdue Evolution to the Outdated and Corrupt Legacy Financial System. Image via nimera.io

Decentralized finance applications such as Aave are already providing many of the services of traditional banks, allowing users to lend their crypto out to earn interest and borrow cash against their crypto holdings, in a far superior method to banks. Decentralized finance applications are already providing users with the ability to borrow against collateral, lend, invest, get a mortgage, and even purchase insurance nearly instantaneously avoiding all the red tape and restrictions imposed by banks and without needing to pay their extortionate fees and criminal interest rates. The concept of a peer-to-peer financial system is a truly amazing thing.

DeFi Users Enjoying Passive Returns Between 1.5-10% per month, Much Higher Than the Returns Offered by Banks. Image via Defipulse

As people have become tired of banks making billions off the backs of their customers, providing little in return unless you are happy with the 0.01% interest rate they pay you on your savings accounts and being charged 20% interest to use their credit cards, millions of users have turned to Decentralized Finance (DeFi) enjoying returns that are much higher than what is offered in traditional finance. I could talk about how superior DeFi is to traditional finance all day, but to avoid those weeds, you can learn more about DeFi here. At the time of writing there is over 100 billion dollars locked up in DeFi protocols where millions of users are enjoying higher returns, less red tape and bureaucracy and their best chance at reaching a level of financial health than the banks will ever be able to compete with. DeFi adoption is a trend that has seen exponential growth, a trend that is expected to continue as younger generations are trusting more of their wealth to Blockchain technology and DeFi applications than the legacy financial system.

The Number of DeFi Users is Increasing at an Exponential Rate Image via dune analytics 

Web 3.0 is also already blurring the lines between reality and digital reality, which is having a huge impact in the video game, fashion and medical industries. I am sure you have no doubt heard all about the “metaverse” in recent weeks with Facebook and Microsoft getting involved in a big way, pouring billions of dollars into creating their own virtual worlds, and decentralized metaverses like Decentraland, the Sandbox and Bloktopia being featured all over YouTube. Web 3.0 and Blockchain technology is impacting the multi-billion dollar gaming industry and creating an entirely new economic landscape utilizing a play-to-earn model which could fundamentally disrupt our current economic system as I have covered ad nauseam here, here and here. With things like virtual reality, augmented reality and Metaverses already in play, these are the early days of Web 3.0

Blurring the lines between reality and a virtual landscape is being referred to as the “Spatial Web,” which will be a much further development of Web 3.0. This will feature enhanced geo-location capabilities, virtual and augmented reality technology and fully immersive metaverses so realistic it will be difficult to distinguish between virtually augmented objects and real-world objects. While the Spatial Web is far too complex to dive into here, it will essentially be a hyper-realistic mapping of our entire world, with every aspect of life (aside from actually living) being connected and fully interactive. Deloitte writes a fantastic in-depth article about the concept of the Spatial Web here.

Map of the Spatial Web. Image via Deloitte

Why All This Matters

The transition to Web 3.0 is an inevitable technological evolution, with the capabilities of building on top of, or incorporating Blockchain technology to become a, “people’s” revolution within this technological evolution. Many high profile economists and technologists are referring to Blockchain technology as being, “the Fourth Industrial Revolution,” with fantastic papers such as the appropriately titled Shaping the Fourth Industrial Revolution by Klaus Schwab, the Founder and Executive Chairman of the World Economic Forum with a foreword by Satya Nadella, CEO of Microsoft being written, published and studied at length within academia and business circles. There was also a great report from the European Parliament titled, How Blockchain Technology Could Change our Lives, a 28 page read if you want to go further down the rabbit hole as one article alone could never do the innovation behind Blockchain technology enough justice. If this technology is disruptive enough to have the attention of the World Economic Forum, and government officials around the globe, it is worth knowing something about.

There are many who support this revolution as it provides a glimmer of hope for a future of a peer-to-peer, trustless decentralized infrastructure that can support a monetary system, healthcare system, (basically any infrastructure system) and the free passing of information without bias or manipulation as these infrastructures and systems will not be controlled by any central authority pushing their agendas, effectively freeing us from the shackles of governments and institutions who value profit over human life.

Then there are others who feel this is a pipe dream, a utopian, possibly anarchic, libertarian vision which will likely never come to fruition as those same authoritarian regimes that people want saving from are also adopting and utilizing Blockchain technology and Web 3.0 to ensure that they will adapt to, and change with these innovations, not allowing themselves to be replaced or become redundant which is also a highly likely scenario. Either scenario is okay by me, as it may not be as purely utopian as many would like, but it is still a vast improvement over the current issues that exist in the Web 2.0 space, and repairing some of which is broken.

While some dream of a Blockchain utopia, other’s fear a Blockchain authoritarian regime, let’s strip back the biases, hopes and fears and look at the facts. Regardless of what future you believe Blockchain and Web 3.0 will lead to, Blockchain technology has some major benefits and near limitless potential, only being limited mainly by human innovation and imagination.

Some of the Benefits of Web 3.0 Image via hackernoon

The key defining trait for Web 3.0 will not be a utopian system, it will not be a decentralized system, it will not be a peer-to-peer monetary or any other type of system or infrastructure, it will not be full immersion into a virtual metaverse. While all those are potential features, traits, and products of Web 3.0, the key defining trait of Web 3.0 will simply be verifiability. Regardless of what future Web 3.0 paints, the one trait that will transcend all possible outcomes is that every piece of data for every single transaction that happens on Blockchain will be tamper-proof, time-stamped, and publicly recorded so anyone can verify and authenticate data transmissions. That key, simple feature is what is most impactful about this technology. When transactions are publicly verifiable there is no longer any need to “take someone’s word,” or trust that someone is telling the truth, everything is 100% transparent on the Blockchain.

We have no idea what is happening with our data or identities as we continue to spend more of our days and upload more of ourselves online, where is that information going and how is it being used? Web 3.0 will add a layer of much-needed transparency and honesty, and force everyone to be more ethical and moral than they are today. Combine verifiability with Smart-contract functionality built on top of that tech and we are now living in a society where everything is executed like clockwork, with calculator type precision, removing distrust, third party intervention, manipulation, deceit and human error across countless scenarios.

Blockchain Technology may Provide the Transparency Needed to Make Living in Mark Zuckerberg’s “Meta” a bit less Creepy Image via New York Times.

Biases still set to the side, Web 3.0 will fundamentally expand the scope of what is possible between human and machine interactions and expand on the already existing seamless peer to peer payment networks, richer information flows, and trusted data transfers without counterparties as is already enjoyed by Cryptocurrency users today. This technological revolution will support the emergence of endless and unimaginable new economic and business models such as empowering global co-operative groups, decentralized autonomous organizations and self-sovereign and self-governed marketplaces. This is meaningful because:

Societies will become more efficient by transferring value peer-to-peer, being able to cut third-party intermediaries, returning value directly to the buyers and suppliers in a market. One of my favourite projects already developing in this space is Authentium, which is utilizing Blockchain technology to cut third party, often exploitive intermediaries in the supply chain industry, allowing higher profits to be kept by the farmers and agriculture workers who dirty their hands every day to feed the planet.

Mutual ownership and governance of decentralised systems can allow for collaboration and incentivization through new economic models to solve complex and sophisticated problems.

Individuals will own their own data, no longer being sold to the highest bidder without their consent.

Decentralization solves the problem of platform or company dependency, effectively “future-proofing” entrepreneurial, business, and investment ventures.

Improved security measures, verification and validation as humans, enterprises and machines share information.

Closing Thoughts

While Web 3.0 may or may not bring about the “power to the people,” type revolution that many people hope it will, Blockchain technology will continue to play a massive role across all industries that have anything to do with the internet. This is already quite evident in the fact that governments and tech giants are investing billions of dollars into Blockchain infrastructure. While Web 3.0 is transitioning us into a future that will blend reality with virtual reality, incorporate aspects of machine learning and artificial intelligence to make our interactions with devices more human-like, the Blockchain layer adds a very interesting proposition to what will be possible in both our digital and physical lives.

The rise of decentralized autonomous organizations (DAOs) built on Blockchain is certainly an interesting proposition with massive companies like Atari looking to give up control of a branch of their business to the community and many successful businesses and teams such as Uniswap and Compound Finance giving full governance control of their business to their community. DAOs are providing perhaps the fairest and democratic business model humanity has ever enjoyed.

Simple Diagram Comparing a DAO to a Traditional Business Hierarchy Image via medium.com/smartz-blog

Blockchain’s integration to Web 3.0 is also already completely reshaping the economic model of the planet as we know it with billions of dollars pouring into decentralized finance platforms, taking money away from the traditional banking and investment industry and traditional investment vehicles like gold and real-estate. Many key strategists and investors in the space such as Raoul Pal and Michael Saylor are referring to this revolution as, “the largest transfer of wealth in human history” and an article from Yahoo stated that  47% of millennial millionaires have at least 25% of their wealth in crypto. These millennials are the innovators and visionaries of tomorrow so if they believe in Blockchain now, it is unlikely that it won’t be incorporated into their future business ventures, or that companies won’t be integrating this tech to entice younger generations, furthering Blockchain development alongside Web 3.0. Interestingly, the United States SEC Chairman Gary Gensler has also recently come out and admitted that Bitcoin directly competes with the U.S. Banking System.

Bitcoin has Been the Highest Performing Asset of the Decade, Siphoning Billions of Dollars From Traditional Markets Image via Yahoo

While it is not yet known if Web 3.0 will deliver us from the atrocities that we currently experience in the current broken form of Web 2.0, it is the best shot we have and there are already glimmering oases provided by Web 3.0. Networks like Bitcoin and Ethereum will continue to provide users with refuge from the onslaught we all face during our current day to day Web 2.0 interactions. Web 3.0 may not “smash,” and replace the current system, but it has a great chance of fixing many of the aspects that are broken when it comes to centralization, surveillance, monetizing human data, and humans being treated as second class citizens by our banks, big tech, and often our governments. As my bio states, “Blockchain technology may not be the end-all, be-all, but it is the best chance we have,” and the potential that Blockchain integration has to shape every aspect of our lives as we venture into Web 3.0 is unfathomable.

The post What is Web 3.0 and Why it Has Insane Potential appeared first on Coin Bureau.

In this article, we’ll take a look at how Utility NFTs came about, why we need them, what drives the demand for them, and some use cases or projects that promise to continue disrupting certain parts of society in a good way.

The $69million NFT art piece that shook the art world Image via Yahoo! Finance

Let’s Talk about NFTs First

In case you stumbled onto this article and can’t make heads or tails of what a NFT is, here’s a short primer: a NFT, the initialism for Non-Fungible Token, can be one of the following:

• a form of content such as a file or a copy of a file.
• a digital receipt or certificate that grants ownership rights to something.
• a digital record involving a link to the metadata of the NFT.

Most of us are probably most familiar with the first kind, which is mostly the kind used for artworks. If you’d like to learn more, check out Guy’s video on this topic.

Why Own a NFT?

There lies, within most of us, a desire to own and even collect the things we like. We also want to share what we like with others, whether it’s simply basking in the joy of sharing or that it carries the underlying desire of showing off. While a million copies of the Mona Lisa exists around the world, the one hanging in the Louvre is still a major attraction because it is the original. If the museum ever had a fire situation, I’d bet my last crypto token that the Mona Lisa would be at the top of their to-save list. 

Mona Lisa at the Louvre Image via Musement

When what we like gets validated by others, that thrill of having made the right decision before everyone else can be as intoxicating as being the first to cross the finish line with your parents watching. Yet I’d say this is an unintentional side effect. It wasn’t until much later, when the opportunity for reselling came up and others were willing to pay heaps for it, that the original desire to collect became “What’s the next best thing to buy for resale purposes?”.

NFTs with Utility vs Utility for NFTs

While the secondary market is still thriving and growing by the day, the visionaries in this space quickly realised its potential for something much more than just a unique thing commanding “I say so” prices. The market was also getting crowded as variations on the same theme mushroomed overnight. But it isn’t enough to do what others have done before. There needs to be a new way to give people a reason to get NFTs. Which brings us to a question – “What if the NFT has additional uses?”

At this point, I’d like to point out there’s a subtle difference between a NFT with utility vs having utility for NFTs:

Utility for NFTs

The answer to “Where else can a NFT be introduced to make things better?” is what drives up adoption rates for NFTs. There are ways for various industries to incorporate NFTs into their business, bringing about much-needed improvements. Some examples include real-estate, luxury goods, tickets to events, etc.

NFT with Utility

On the other hand, “What other benefits can I get from this NFT other than holding it?” looks at NFT usage in a slightly different light. The short response is: it’s a key that opens doors. Holders of this type of NFT is akin to having a membership card to an exclusive club. Holders gain access to a myriad of activities reserved for members. These include parties, airdrops, early access to new collections etc.

In a sense, there’s nothing new invented here. Many companies have a membership program that gives members certain privileges. Plastic is cheap (or expensive, depending on which side of the climate change convo you’re standing on). As an aside, I’ve heard that the Centurion card by Amex, which has one of the most exclusive programs in the world for their cardholders, has metal in it. In our current digital age, of course it makes logical sense to have a digital version of a  membership card. How then, can NFTs put a new spin on a well-known operating model?

The legendary Centurion card by Amex Image via ThePointsGuy

Bored Ape Yacht Club

In terms of fame, the Bored Ape Yacht Club (BAYC) is just as well-known as the Cryptopunks. An individual ape cost an average of $200 and the entire collection went for $24.3 million, according to Sotheby’s. Unlike the punks, where the NFT is simply an artwork, holding a BAYC NFT is akin to having lifetime access to a members-only area which includes:

• The Bathroom – A collaborative artistic project where members get to draw a single pixel on a canvas every 15 minutes.
• Mutant Apes Yacht Club (MAYC) – The creators dropped a serum to the wallets of the NFT holders. After injecting their apes with the serum, a mutant version of the ape appeared.
• Bored Ape Kennel Club (BAKC) – Each ape gets its own dog. This is also airdropped to the members.
• Merch store – Exclusive merch only for members.
• Apes vs Mutants Mobile Game competition – Released on Dec 5th 2021, the game is meant to be played between Ape and Mutant Ape NFT holders. It involves apes throwing a bunch of bananas, then pizzas, at each other. Good thing that food waste is a non-issue in the digital world.

The state of The Bathroom as of May 27, 2021. Image via blockchaingene1

Access to any of the above requires a log-in with the Metamask wallet. The website will check whether you have an ape. If not, it will ask you to head over to OpenSea to get one. Even though most of the mutant apes and dogs are already available on the secondary market, these are all put on sale by the original members.

The BAYC team also allow the members to do what they like with the apes, including commercialising them as they wish. The team had their members voting for ways to use the funds, including donating a total of $850,000 to various ape-related animal charities. They were one of the first to introduce additional functions to their NFTs. This has proven to be a popular strategy for later projects looking to build a community and give NFT holders more bang for their buck.

Ghetto Sharkhood

Another new project that is about to kick off with some interesting real-world initiatives in collaboration with the NFT is Ghetto Sharkhood. Similar to BAYC, this NFT project features a collection of 10,000 sharks in various incarnations. At the time of writing, the sharks have not been minted yet. The minting date is set for Dec 12th, 2021.

The Ghetto Sharkhood team has two roadmaps, one for the project and another that’s closely-tied to reality. The project roadmap has the usual features typical of a NFT project such as:

• Ghetto Shark Fund aka community fund to decide on fund allocation.
• Ghetto Sharkade for playing NFT games. NFT holders can also host their own games and invite others to play.
• Ghetto Shark Coin for staking and spending at the merch store.
• Ghetto Shark Impact Fund for supporting social and environmental programs.
• Ghetto Shark Partnerships with other companies and blockchains.

What makes this project worth a second look and stands out from the rest of the collectible-type of NFTs is their Ghetto Sharkhood Impact Roadmap. This is different from the one for the project as it’s closely-tied to reality. The sector that they are focused on is agriculture.

A portion of the proceeds from play-to-earn games in the Ghetto Sharkcade are used to fund programs that support agricultural communities, especially in rural areas. The idea is to help farmers produce food in a sustainable manner, thus making a positive impact on their lives.

Get ready to swim with the sharks and make an impact in the real-world. Image via Ghetto Sharkhood

Education is one of the initiatives for the team. It covers education for children and technical knowledge for farmers to enhance their operations. They also have plans to create a network of different farming communities that can support one another. This network also extends to linking buyers with farmers in a more direct manner. After that, the next phase is to provide healthcare services to women and children in developing areas. Last but not least is being involved in beach cleanups and animal conservation efforts, amongst others.

I will be keeping a close eye on this project to see if it will be able to live up to any of its plans for social improvement. If it works, this could be a new model for future projects, which will ultimately benefit those in need.

VeeFriends

One name I come across time and time again when looking into NFTs is Gary Vaynerchuk aka GaryVee and his project VeeFriends. Who is this person and why is he often mentioned when talking about NFTs? In short, he’s a wine critic turned entrepreneur active in digital marketing and social media. He started a NFT project called VeeFriends and launched the first collection in May 2021. The purpose of the project is to provide a blueprint for others on how to successfully start a NFT project.

He saw, early on, the importance of having utility added to the NFT tokens instead of just artwork. Unlike most NFTs, the artwork for VeeFriends is really nothing to boast about. However, it’s what the token unlocks for the holder that gives them their real value.

There are three types of NFTs:

• Admission NFTs: 9400 pieces
• Gift Goat NFTs: 555 pieces
• Access NFTs: 300 pieces

All the NFTs gives holders 3 years’ access to VeeCon, Gary’s own conference on business, marketing, ideas, creativity, entrepreneurship, innovation and fun. It’s basically a mega-networking opportunity as the current floor price for the cheapest NFT starts from slightly under 9 ETH.

As the name states, the Gift Goat allows holders to get gifts from Gary in addition to the admission to VeeCon. He will be mailing out 6 mystery gifts per year to each NFT holder.

Access NFTs are the top-tier ones because this gives the holder access to Gary’s time. Whether it’s doing an activity together or 1:1 face time virtually or in-person, this is like a meet-the-idol moment for his fans. I do wonder if it’s possible to meet him more than once with the token. Also, how would something like this work on the secondary market? I can’t imagine him spending his time meeting people all day long. He’d never get any work done!

VeeFriends NFTs unlocks lots of value for holders. Image via Welcome To VeeFriends on YouTube

GaryVee has succeeded in showing marketers the potential of NFTs for branding and marketing. He’s also succeeded in pushing NFTs to the mainstream crowd through his own reach. Many of the NFT holders probably aren’t crypto-savvy at all. They’re just his regular fans who want to get an opportunity to have more engagement time with him.

This model has certainly perked up the eyes and ears of the business community and a few of them have taken the plunge into the the world of NFTs. Congratulations to “Mr. Vee” for increasing adoption of blockchain technology and what it has to offer.

“Meta Optimist” by Clinique

Clinique saw beyond the artwork potential of NFT when they released one of three editions of “Meta Optimist”, a NFT piece that also gives the holder free products for 10 years, and a 50-year-old product called Almost Lipstick Black Honey that’s usually out of stock. “Modernise loyalty” is how Carolyn Dawkins, SVP of Clinique Global Online, explained the consumer engagement and marketing strategy. R/GA Head of Creative Nick Pringle also offers another telling description of NFTs’ potential: “.. it’s a piece of code that unlocks a series of functions.”  Those two quotes pretty much sums up what NFTs are capable of in the future.

Other fashion brands saw another way for NFTs to make an impact with their sales by offering virtual goods in exchange for physical ones. This is what lifestyle brand Axel Arigato offers together with Aglet, an app that transforms physical steps into in-game currency. The currency can then be used to purchase virtual sneakers. By completing the collection in the app, they get a special pair of in-game virtual shoes, which lets them be in the draw for a real pair of shoes by Axel. Even if they don’t manage to get the real shoes, showing the virtual shoes in the stores nets them a free pair of socks. Talk about cross-promotion between the real world and the metaverse!

Get virtual sneakers through walking and a chance to win a real pair. Image via Vogue Business

Conclusion

In a society where exchange values are prized over experiential value, NFTs seek to marry both by combining artwork with utility. From a simple digital artwork, to being the key opening all kinds of doors, NFT’s versatility promises a not-so-far future where it will quickly become part and parcel of our everyday lives. Through the four projects highlighted here, we see that it is a tool like any other that can be tailored for all kinds of purposes. From social impact to selling more stuff, this piece of tech has the power to change the way we engage with one another, whether as a consumer, collector or creator.

What’s even more exciting is that we’ve only just scratched the surface of NFT’s utilitarian function. As with everything in the crypto space, developments are happening at a dizzying pace. While NFTs have been around since 2017, the speed of development in the past year until now can truly be described as exponential.  It is feasible to believe that there will be more ideas and initiatives in the future that can further induce more ways for NFTs to become part of our lives.

The post Utility NFTs: NFTs with Real Muscle appeared first on Coin Bureau.

In this article, I’ll go through some basic things about building a solid portfolio and some more in-depth suggestions (not financial advice, though). Of course, no one portfolio structure is suitable for all of us, but avoiding stupid mistakes will save you a lot of money and hopefully also make you a lot of money later in the future. So, let’s start.

Why Will There Be a Bear Market?

First, explaining how the crypto market cycles work to those just starting with crypto is essential. The crypto market has so far moved in 4-year cycles mainly because of Bitcoin and Bitcoin’s block halving’s. We’ve always seen a huge run-up in prices towards the end of the cycle, followed by at least an 80% crash. In every cycle, we’ve seen higher highs and lows that confirm cryptos’ long-term outlook. However, many projects have disappeared during the years, and often people forget to talk about those projects that went to 0. Instead, we talk about the astonishing performance of both Bitcoin and Ethereum. That’s why you need to realize that buying just any crypto won’t guarantee your success. Or yes, at the peak of the bull market, everything tends to go up, but not all cryptos recover from a bear market.

Here’s a look at how correlated many cryptos are to Bitcoin. Image via Cryptowatch

Some say this could be a super cycle, meaning that we won’t see a hard bear market; it’s still good to prepare. We’re already on the edge of a bear market, at least by looking at the timeframe from earlier cycles. And if we want to be correct, a bear market is defined by a 20% in prices which we already saw in Bitcoin dropping from $69k to a low of about $53k. However, for it to be a true bear market, the downturn should be more sustainable, and it might be that we can still go on with the bull market for a while since retail FOMO hasn’t struck yet.

Usually, just before the end of a sharp rise, retail investors with little to no knowledge tend to flood the market, which initially catapults the prices, but eventually, smart money (those familiar with Bitcoin) and big money (institutions) tend to dump on the newbies. This leads to a drop in prices further fueled by panic by those who entered last and now want to get out. This is why I believe that a bear market is unavoidable until we have good enough education about Bitcoin and cryptocurrencies. Those newbies will always rush in at any price because of FOMO, which pushes the price up too fast and too much, and that’s an irresistible selling opportunity for others. Just look at the price of Bitcoin and other cryptos. If something starts rising, leaving the chart to look like a hockey stick, it’s bound to come down at some point when those sitting on astronomical gains want to cash out.

A great place to follow the retail buzz around Crypto and Bitcoin is Google Trends. Image via Google Trends

Now ignoring the possibility of a supercycle, there’s still one question to be asked, what leads to the bear market? To find out the answer to this, I suggest you watch Guys YouTube video on Coin Bureau about how to prepare for a bear market. There he goes through different scenarios on what might lead to a bear market. This is important because some cryptos might benefit depending on the cause. For example, blockchain games and metaverse projects might benefit from a depression or a lockdown due to a certain pandemic. Guy points this out in the video, backed by statistics of previous cases. The reason for a bear market will also determine how much we drop and how fast we’ll recover, so watching that video I linked to isn’t a bad idea.

Risk/Reward

Again, as you’ll see many times in this article, I borrow some of Coin Bureau’s and Guy’s hard work. This time I suggest you watch Guy’s video on Crypto Portfolio 101. There he goes through different risk/reward combinations and gives a good view of which cryptos go into these different categorize.

 Much of it is basic logic, like taking, for example, Bitcoin. When compared with other cryptos, it’s undeniably a low-risk crypto, it’s been here the longest, and it has a good user base, along with a use case. On the flip side, though, because of its massive market cap of over one trillion dollars, it kind of limits its upside potential. Yes, over the long run, we could see another 10x, maybe even more, but from what I understand, that’s pretty much it. However, take a small-cap altcoin, market cap under $100 million, and it could “easily” 100x even in the short term. It goes without saying that the project needs many things to succeed, and the process is, in reality, far from easy. But for you as a holder, you just wait a year and maybe have 100x more in your portfolio. Unfortunately, there’s just that little thing called risk. Buying a small-cap coin also comes with the possibility that when you look at your portfolio in one year, the value is 0.

There are still these great 100x projects out there, and by all means, you should go for them if you believe in something. To find them, you simply have to do a lot of research. Not to disappoint you but, although the project you choose can be great, it might not thrive if you buy it before a bear market. The market might cool off, and your project might be forgotten about, and in the next bull market, there may be others that are even better that gain the attention. Also, while it’s true that crypto is still in its early stages, it’s far from what it was a few years ago and finding the next Bitcoin, Ethereum, and Solana seems to get harder and harder. Plus, as Guy points out in the video, some cryptos simply carry an unproportionable high amount of risk compared to their reward potential. Nevertheless, you can still get significant gains with relatively low-risk holdings; just look at the price action of Solana this year.

Finding the perfect balance is highly dependent on your life situation so make sure to put some time into thinking about risk/reward.

The key is to find a balance in your portfolio’s risk/reward. Of course, this highly depends on your age, finances, other investments, mental risk tolerance, family, job, and much more. But since I here didn’t cover the risk/reward ratio more in-depth, I urge you to check out the video I linked to earlier. It’s genuinely excellent, and it helps you gather a mental image of what might suit you. Next up, let’s start looking at what your portfolio needs to come back from a bear market.

Diversification

I don’t think it comes as a surprise to anyone that to have a solid portfolio, you need diversification. But, it doesn’t matter how positive and bullish you are on one project; it still can’t be your only bet. There are always factors you can’t foresee, and they might be the most unlikely things ever, something that’s a one in a million thing. But, the sad truth is that no matter how unlikely it is, if it happens and your holding goes to zero, the only thing you’re going to get is a conciliation hug from a few friends or family.

Although it did turn out good, one example is the Dogecoin millionaire ProTheDoge. He put all his life savings ($250K) into Dogecoin, and even though he had over 3 million at the top, I would still argue it was the stupidest thing ever. Playing around with your life savings like that isn’t responsible. What If it goes to zero? What then? Depression, at least, and that’s for sure. And I want to emphasize that I’m not just saying it because he put everything into a memecoin like Doge. I just don’t think it’s a good idea to have all your eggs in one basket. I don’t even think it’s responsible for Michael Saylor, the CEO of MicroStrategy, just to buy Bitcoin for the company. However, that decision is more motivated due to the lower risk on Bitcoin and the multimillion-dollar software business MicroStrategy would have, even if Bitcoin were to go to zero.

Not one basket but MANY baskets.

So, now that we’ve concluded that we won’t put all eggs in one basket, how do we diversify in crypto? Well, when looking into this, it turns out that it wasn’t as straightforward as I would have thought. Naturally, diversification means that you’ll pick a few coins from different categories; however, defining different categories makes it hard. That’s because there are different ways of dividing cryptos. You can do it by consensus mechanism, use case, what’s it built on, and a lot more. Guy has a relatively good video on categories, but that also lacks a few that I think deserve a separate mention like NFT focused ones and metaverse ones. So, I would approach this issue by simply picking some that clearly have different use cases and approaches. Here are some which I would consider separate categories and one example (thank you, Guy, for your YouTube video, it helped a lot).

• Smart contract – Ethereum
• Store of value – Bitcoin
• Oracles – ChainLink
• Payments – Bitcoin Cash
• Exchanges – Crypto.com Coin
• Metaverse – Decentraland
• DeFi – Aave
• Blockchain Gaming (kind of flows into metaverse too) – Axie Infinity
• NFTs – Rarible
• Supply Chain – Vechain

There were a few ideas, and if you filter by categories on CoinMarketCap, you’ll find plenty of different use cases for cryptos. However, there’s also another problem with diversifying in crypto: the dominance of the first two categories. Bitcoin plus smart contract cryptos dominate the market with probably over 70%. These are seen as the fundamentals of crypto, and naturally, that’s why they deserve a more considerable portion in the portfolio. If you disagree with me, here are a few reasons these categorize should make up the majority of your portfolio.

Bitcoin and Ethereum dominate the market even alone (over 60% market share). Image via CoinMarketCap

Store of value obviously because of Bitcoin. Not only is the underlying thesis of Bitcoin excellent, but it also has the biggest market cap and the advantage of being first. Bitcoin is something that I would say at least 90% of the crypto community believe in, and it’s also the first choice for new players, including institutions. Cryptocurrency without Bitcoin isn’t something that’s going to happen.

Then smart contracts because that’s where the innovation lies. Many of the categories I listed, like metaverse and NFTs, are just subcategories for smart contract cryptos. Smart contract cryptocurrencies power almost every use case you can find. They power entire sectors of the market, and if you don’t believe in these or own these, then it’s implied that you don’t believe in anything built on them either, which of course is the opinion of some of us, and that’s fine. I just think that smart contracts and the blockchains powering these are the sources to most use cases of cryptocurrencies just think of NFTs.

Plus, there are still so many things we haven’t even started exploring with smart contracts. It’s not a coincidence that some talk about the flipping (when Ethereum overtakes Bitcoin as the biggest crypto by market cap). So, in conclusion, buying smart contract platforms is in itself diversification since you’re relying on many different categories building on top of that. Then if those built on top takeoff, you will also benefit from that. You can simply look at the success of Ethereum. You didn’t have to buy an NFT or invest in DeFi to benefit from their success; you can simply see it in the demand and price action of Ethereum, on top of which many of these are built.

Which Cryptos Should You Pick?

Naturally, the only thing I can say is to do your own research. However, I can give you some advice based on my research. I can first say to trust those with a proven track record, namely Bitcoin and Ethereum. Bitcoin has been around since 2009, and it’s also the biggest cryptocurrency by market cap (by far). I think that pretty much explains why I believe that this is a crypto that’ll survive a bear market. Ethereum is also quite the OG crypto or, more accurately, OG smart contract crypto, the second biggest market cap, and the leading smart contract protocol with high institutional demand. Therefore, I think it’s safe to assume that Ethereum too will bounce back and be higher in 5 years than it is now.

Then next, although I previously talked about diversification into different categorize, I would add some competitors for Ethereum. That’s because many high-profile crypto people have said that they believe in a more extensive ecosystem not only ruled by one protocol. Most recently, I believe Solana Labs co-founder Raj Gokal said that he doesn’t view Solana as an Ethereum killer and that he believes they can co-exist with potentially different use cases.

Then looking at where institutions are parking their money, we have the highest year-to-date inflows in Solana, followed by Cardano and Polkadot. The percentage allocation you decide to put into each is up to you, but I just want to point out that Ethereum has the best track record. When you look at the price action of Ethereum, it’s more mature and isn’t likely to fall as much as the others in a bear market. However, in a bull market, we can assume some smaller market cap coins might outperform Ethereum as Solana has.

Then lastly, on these two categories, I want to mention Litecoin since I know there are many fans out there. However, I’m not a fan of it, and that’s purely because of price action. Looking back, we see that in this bull market, Litecoin barely broke its all-time high compared that to Bitcoin, which more than tripled its price since the 2017 ATH. Therefore, I don’t believe any crypto can compete with Bitcoin in the store-of-value category.

Here’s the proof. Image via CoinMarketCap

Other individual picks to add to your portfolio that have gained much attention in recent months are metaverse projects, The Sandbox and Decentraland, maybe even Enjin or Axie Infinity. These would be a great diversification, and as I mentioned in the beginning, they could even thrive in some bear market scenarios. They also have a great deal of momentum behind them, which was shown in the recent dip when they too initially plunged, but before anyone else, they bounced back to hit ATHs. (See the picture down below). Although now, they’ve cooled off a bit too. However, I have to say that the valuations are quite high. If you consider this a metaverse bubble, then it’s very likely that these projects fall even more than the broader market when a bear market strikes and the hype winds down, so be careful and do your own research.

This is by no means guaranteed and a 5% dip isn’t the same as a bear market. Still, it’s interesting to see. Image via TradingView

Other good projects for good diversification could be some DeFi projects or even something completely different from the previously mentioned categories. For DeFi projects, the safest might be to go with big names like Aave or Uniswap. However, as many of you know, due to many factors, DeFi hasn’t been the hottest sector out there. That’s why addressing the risks of DeFi is up to you, but if I were to give my opinion, I don’t think DeFi is going away; it’s a key part of cryptocurrencies. The question is that at what scale we’ll see it in the future, and will it be new protocols or the existing ones that dominate the market. There’s lots of innovation in the space, which brings additional risk, and the thesis about going with projects with proven track records can be broken.

Then for a project not so strongly related to anything brought up here could be Helium. I took a sneak peek into Guy’s portfolio (which can be found in the CB weekly newsletter), and his content which led me to the conclusion that a project like Helium with demand from big-name companies could be a good bet since the users of a protocol like this won’t stop just because of a bear market. And for those of you who don’t know, Helium is a decentralized blockchain-powered network used by, for example, Salesforce. There are naturally other projects with similar advantages, but I trust Guy to guide me through the crypto markets.

Then, of course, not maybe the most responsible thing to say, remember to pick the risky projects you love. I know many, if not to some degree, all of us, are in cryptocurrency for the significant gains. However, making astronomical gains with something as big as Bitcoin just isn’t going to happen. That’s why if you’re looking for those 100x gains, you got to go for the smaller market cap coins, as previously stated. I believe these should be in our portfolios because it keeps our inner gambler in control and makes it more fun.

Naturally, most of your portfolio should consist of safer and more well-established bets but having these risky projects take a small chunk of your portfolio is completely fine. They can be good if they manage to explode since that will offset much of what you might lose with the others in case of a bear market. BUT, with risky projects, I do not, I repeat, I do not mean meme coins. Yes, they can make you filthy rich, but that’s 100% speculation. Instead, pick a project you’ve thoroughly researched with a good use case, strong team, high demand, and hopefully some good partnerships. Even with the riskiest projects, you can somewhat minimize the risk by doing a good job researching before investing.

We all dream of hitting that one in a million project that takes us To The Moon.

Then as the last pick from me, NFTs. Yes, they are not cryptocurrencies, but they can be found in the same wallet with your cryptos (not all wallets). Picking up a piece from the most well-known and well-established projects like Cryptopunks and Bored Ape Yacht Club can be a good bet (also Mutant Ape Yacht Club). With these price levels and even some bubble signs, I would stay with these big projects since picking riskier assets amid a potential bubble might turn out bad, just look at the ICO craze back in 2017. NFTs being still this early, I think the risk is high enough even with these big-name projects. However, I know the prices are incredibly high, and not all of us have the means to purchase even a mutant ape. Therefore, I think NFTs should be the last part of your portfolio, and you should only invest in them with sums that you are absolutely okay losing. So, get an ape if you can, but ensure that your portfolio can handle the allocation.

Conclusion

I know this article didn’t maybe provide you with the in-depth tricks on how to avoid a bear market; that’s just because it isn’t possible. Neither is it possible to give a list of specific cryptocurrencies that are guaranteed to be higher five years from now. The only way to minimize the risk while maximizing the gains is to ensure that your portfolio is built on solid foundations. Again, I will borrow Guy to explain this further. Look at his portfolio. Over 50 % allocated to big names Bitcoin and Ethereum then add to that the next two names Solana and Polkadot, and that’s already 76% of his portfolio. Those are big names with plenty of upside but a limited downside. That’s the recipe for surviving a bear market. According to the book of diversification, it’s not correct, but then as I said, pay the closest attention to store of value and smart contracts because they are the most well established with proven track records. Then, of course, Guy too has a variety of Altcoins which easily might explode to become key holdings in his portfolio which would be great for him. But they might go to zero too, but that won’t matter since he still has his solid foundation.

A strong foundation surrounded by diversified altcoins and some risky bets sprinkled on top will get you out of a bear market. And, from what cryptos have shown us so far, that portfolio will also thrive in a bull market. So, yes, you might not make gains like ProTheDoge, but at least you can sleep at night knowing your portfolio is a safe as it can be. Plus, you can always use your gains to play some lottery if you really want to chase those out of this world gains.

The post How To Create a Crypto Portfolio That Can Survive a Bear Market appeared first on Coin Bureau.

Glassdoor Showing Blockchain Job Growth Outpaced Bitcoin Price Even Back in 2018 Image via theblockchainacademy

Whether you are interested in Blockchain gigs for the sweet paycheques, or your job is at risk of being “Blockbustered,” and you are seeking job security by being part of an emerging technology, or maybe you want to be part of the excitement of this cutting-edge technological revolution or are simply passionate about the industry and all it has to offer, there are opportunities in the Blockchain industry for everyone. This article will give you some hot tips and resources on how to launch your new career in this fascinating industry.

Blockchain Skills Were the Highest In-Demand Skill in 2020 Image via LinkedIn

What is Blockchain? More Than Just Crypto.

If you are brand new and haven’t been kicking around the industry for as long as some of us crusty veterans, you may be wondering what Blockchain even is. Blockchain technology’s first notable use case was in the form of cryptocurrency with the introduction of Bitcoin and is the underlying technology that makes cryptocurrencies possible, but crypto is only one of the many applications of this technological innovation. Without going into too much detail (I will link plenty of additional resources throughout the article) Blockchain is essentially a digital register of transactions. It is a technology that provides a platform that transmits digital information that cannot be edited or tampered with, and it can be completely transparent and verifiable by all parties involved to ensure trust and increase the faith of all parties.

How a Blockchain Works Image via 101 blockchains

To make Blockchain relatable and understandable I am going to borrow from a brilliant analogy that I once read that compares Blockchain Technology to an Excel Spreadsheet. The Blockchain can be thought of like a spreadsheet, but this Blockchain network is shared across many different computers all over the world, so it is like everyone on that network shares the same spreadsheet and every transaction that is performed, or information that gets generated is printed into the spreadsheet, viewable by everyone and nobody can go in and edit or manipulate any of the data that has been entered. Another feature that contributed to the explosion of Blockchain adoption was the introduction of smart contracts, which, in very simplistic terms, are automated programs that can be executed on top of the Blockchain Network. Here is a fantastic YouTube video from Simply Explained that explains How a Blockchain Works, and another one covering Smart Contracts.

Simplified Explanation of how Smart Contracts Work Image via lvivity

Why Should You Consider a Career in Blockchain?

Companies are hiring in a big way!

When people consider careers in Blockchain, their first thought will often default to the financial industry. While it is true that Cryptocurrencies and Blockchain have massive utility in the financial space, firms across multiple sectors are also starting to adopt and implement this tech to meet growing and evolving business needs. The Oil and Gas industry, insurance, retail, food and beverage industry, start-up companies of many different types, tech firms, video game companies, supply chain logistics, healthcare and government agencies are all looking to adopt and utilize this tech.

Industries That are Leading in Blockchain Adoption Image via The Blockchain Academy

Blockchain’s use cases, especially in the finance industry has been noticed by the biggest players in the space. Companies such as J.P Morgan and Wells Fargo are hiring staff with experience in Blockchain technology with recent Bloomberg and Philadelphia Inquirer articles stating that firms on Wall Street are offering to pay on average, 50% higher wages to employees that have crypto knowledge. Companies like IBM, American Express, Mastercard, and Visa have already dove in headfirst into Blockchain tech and even McDonalds, Taco Bell and Burger King are dipping their toes in, with Amazon and Walmart also recently advertising Blockchain-related jobs, so regardless of what background your job experience is in, there is likely a company in your field that is adopting Blockchain in some form.

Companies are Offering 50% Higher Wages for Staff With Crypto Knowledge Image via Inquirer.com

The benefits of pursuing a career in Blockchain technology are multi-dimensional. We know that the average salaries for Blockchain experts are higher, that the Blockchain industry itself is growing at an astonishing rate, outpacing many other industries and is thriving not only as a stand-alone industry, but that traditional companies are adopting the tech at a high rate, opening up positions globally and across multiple sectors. Let’s have a look at some of the roles looking for Blockchain experience:

Blockchain Roles Breakdown Image via The Blockchain Academy

With non-traditional Blockchain companies hiring for Blockchain positions, and many positions allowing for employees to work remotely, this has opened up positions globally, with most jobs currently available in the United States.

Global Map Showing Where Crypto Jobs are in Highest Demand Image via Jeremybloom.net

Technological Skills are Not a Requirement

I know that many people feel that they are not tech-savvy enough to pursue a career in Blockchain technology and Cryptocurrency and this could not be further from the truth. I have held a few positions with Blockchain companies in the past and landed my first gig when the most technically savvy things I knew how to do were unplug my router when the internet acted up and hit control alt delete on my computer when it started acting up. The only technical advice I could give was, “have you tried turning it off then on again?”

While my technical knowledge in Blockchain and Crypto have improved substantially over the years, remember that everyone has to start somewhere so don’t let that intimidate you to the point where you feel like you can’t get involved. Heck, I remember the marketing director for one of the crypto companies I worked for had never even purchased Bitcoin and trying to explain to him how Metamask worked was like trying to teach quantum mechanics to ants, yet he was great at what he did in terms of marketing and played a vital role in the success of the team. For those of you not so tech-savvy, the great news is that even non-technical jobs for Blockchain are in high demand and the salaries are still higher on average.

Both Technical and Non-Technical Blockchain Roles Pay a Higher Average Salary Image via blockgeeks

While of course I cannot provide a comprehensive list of every non-technical position available, and opportunities are only limited by your imagination for what you can come up with to capitalize on in this industry, these are some of the non-technical roles that are currently the most in-demand for the Blockchain industry and companies looking for Blockchain experienced employees.

Accountants and Financial Advisors– With many companies now choosing to pay their staff in crypto, invest in, and hold crypto on their balance sheets, the need for Accountants and Financial Advisors with knowledge in Crypto and Blockchain tech is growing at a rapid pace.

Marketers– Similar to any industry, marketing is key to boosting sales and increasing revenue. With thousands of new Blockchain-centred start-up companies and traditional companies adopting Blockchain into their business models, the need for marketers who have an understanding of Blockchain tech is on the rise.

Writers and Journalists– Hey, this one looks familiar! Crypto and Blockchain tech is growing at a head-spinning rate and the need for writers and journalists that can cover crypto content is increasing as well. With the rise of FinTech companies emerging and traditional firms and publications now also covering crypto content, writers are in high demand for getting Crypto and Blockchain content into the hands of the public.

Artists– The explosion of NFTs have created a paradise for artists in 2021. We have seen many NFTs selling for thousands or even millions of dollars, paying many artists handsomely. Though it isn’t just through NFTs that artists are making money, I blame video games and social media for giving people the attention spans of goldfish, and as a result, it is now common for many crypto articles to keep readers engaged by embedding pictures and artwork into articles, capturing readers attention through pictures and graphics to make the articles more captivating, or those YouTube thumbnails more clickable. The further adoption of metaverses is also likely to continue the increase in demand for artists.

Companies such as CoinTelegraph and Coinbureau Utilize Artists and Graphics Like These to Create a More Enjoyable Visual Experience for Their Readers Image via Coinbureau

Research Advisors and Analysts– Just as we have always had analysts, advisors and researchers for traditional firms analysing everything from financial markets to user adoption rates, Blockchain is no different. Analysts are in high demand and are wanted to analyse and interpret things like crypto price action, price predictions, financial metrics, user adoption and so much more. Research also plays a big role when it comes to things like adoption rates, new tech, new trends and finding out about the latest ICO’s, IDO’s, and emerging projects.

Recruiters– With the rapid growth in the demand for skilled workers brings the need for recruiters to match Blockchain skilled candidates with companies needing talent resulting in Blockchain recruitment being on the rise as well.

Average Salaries for Common Blockchain Positions Image via The Blockchain Academy

Blockchain Legal Consultant– As Blockchain technology is quite new, the legal and regulatory landscape can be very difficult to traverse and understand. With regulations constantly changing and new rules and laws being implemented frequently, businesses need to leverage the expertise of legal consultants to help navigate the legal landscape behind this rapidly changing environment. Blockchain legal consultants will not only need the traditional skills held by those in the legal field but also have a keen understanding of international law as this technology spans borders and is being adopted globally.

Business Development Roles– Blockchain technology has brought about the launch of hundreds, if not thousands of new companies and projects. Many of the founders of these companies have the technical skills required but lack the business acumen, skills and experience needed to run a successful company and implement business development plans and processes so the need for anyone with operations or business development experience is in high demand for many start-up companies.

Customer/Technical Support– This is probably my favourite one as it is entry-level, has loads of positions available for companies who hire frequently, many of these are remote so they can be done from anywhere, and these roles are fairly easy to get with minimal initial Blockchain knowledge. Once you have the basics of Crypto and Blockchain understood, you can apply to companies such as Binance, Kraken, Exodus, Coinbase etc, to work in a support role and this will further develop your skills and knowledge regarding blockchain, levelling up your crypto knowledge tenfold in a short period of time. There are also great opportunities for advancement and career progression.

Blockchain Wheel of Opportunities Image via 101 blockchains

If you are someone who is technically inclined and have an aptitude for coding, engineering, and developer positions then you are like the rockstar of the Blockchain industry, and the sky is the limit (for both opportunities and salaries).

Technical Roles & Skills

Technical roles in Blockchain call for basic software programming skills with the most common being C++, Javascript, Go, Solidity, C#, Ruby, Python and Kotlin. If you already know how to code and you have not already done so, it would be a great idea to build a portfolio of your work to accompany your resume when applying for developer positions to showcase your skills. If you do not already know how to code, then I would recommend drilling into some great learn to code programs (many are free!). Great beginner to advanced coding courses can be found on sites like Udemy, Codecademy, Pluralsight, The Odin Project, Khan Academy or feel free to find another as there are dozens of free or cheap courses available that can take you from noob to coding expert in no time.

Blockchain Programming Languages Recommended Image via Pinterest

When it comes to developer and engineering positions, not only can skilled employees choose between companies, roles, projects, and choose between global locations or remote work, but they can also choose to specialize in one Blockchain network over another. For example, many of these positions are held by developers who only want to focus on Bitcoin, Ethereum or Cardano etc, depending on which network they are passionate about, or they can work for exchanges or companies that provide crypto software products that may require more diverse work spanning multiple networks, or work on functions and features of a website, app or software, not even working at all with the Blockchain technology itself. Here are some resources to look into for those looking to get involved in a specific Blockchain Ecosystem:

Bitcoin.org

Ethereum.org

Cardano.org

Polkadot.network

Ripple Engineering

Hyperledger is also worth looking into for developers looking to advance their career or start out in the Blockchain industry. Hyperledger was initially conceptualized by the Linux Foundation and have collaborated closely with IBM to create a Blockchain network rivalling Ethereum as one of the largest Blockchain platforms out there. This is a great place to start for people wanting to get involved in the supply chain, logistics, or inventory management applications that make use of the Hyperledger technology. Much of Hyperledger technology is open source and there are a lot of resources that can be found on the Hyperledger foundation website for anyone who wants to take a closer look.

Some of the Graduated Hyperledger Projects Image via Hyperledger.org

Here are some of the technical Blockchain roles that are in high demand:

Blockchain/Smart Contract Developer– Blockchain developers help with the expertise needed to help companies explore Blockchain platforms and develop business solutions. This is the most commonly sought after, and least specific job role in the Blockchain industry as Blockchain developers can wear many different hats and work on essentially endless projects, most commonly creating applications for Blockchain companies or projects. Blockchain developers need to have good attention to detail, and typically work with C++, Python and Javascript.

Blockchain Solution Architect– This role is responsible for designing, assigning, and connecting Blockchain components and liaising with team experts like developers, network admins, UX Designers and IT Operations to connect everyone needed to develop and complete the Blockchain Solution.

Highest Demand Coding Languages for Cryptocurrency Companies Image via Angel.co

Project Manager– Similar to the Architect but without the necessity of in-depth Blockchain technical skills, this role is responsible for connecting Blockchain projects and tasks to experts, acting as the liaison or bridge between different experts and jobs that need to be completed. Blockchain project managers need to have the skills of traditional project managers who likely use cloud-based project management tools and have enough of an understanding of Blockchain technology to understand what solutions fit what requirements. As with any Project Manager role, Blockchain Project Managers need to have excellent communication and organizational skills.

Blockchain Quality Engineer– This role is responsible for testing and ensuring that all the areas of the project meet the requirements before launching. As many Blockchain applications can have a whole host of automation and moving parts involved, a Blockchain Quality Engineer needs to pay close attention to detail and be thorough to ensure that every aspect of the Blockchain framework is working as expected as mistakes and delays can be costly.

Blockchain Information Security Analyst– Security is of the utmost importance when it comes to Blockchain development and implementation. This is one of the highest paying positions available with Blockchain security skills being in very high demand as every project launched will need to have certain security features implemented.

Here is a list of the top 30 companies that have posted the most Blockchain-related job vacancies:

Top 30 Employers with Blockchain Related Vacancies Image via cointelegraph

How to Land a Job

Up Your Skill Set

If you do not already possess the skills needed to find a job in the Blockchain industry there are a plethora of resources to help you on your quest. My first recommendation for places to go and learn isn’t only applicable for those who want to work in the space, but I would encourage every crypto user to go through these resources to understand how crypto works a bit better as it can save users from potentially making very costly mistakes during future transactions. You would not believe the number of crypto users who have lost thousands of dollars or more permanently, an expense that would have been avoided if they just took a few minutes to go through the free resources available on many of our favourite exchanges. Here are some great places to start building your crypto and Blockchain knowledge:

Binance Academy

Kraken Learn

Coinbase Learn

Kraken Learn is a Free Resource Provided by Kraken Exchange to Provide Blockchain Education Image via Kraken/learn

YouTube is also a fantastic place to get your fill of crypto education. While tuning in regularly to the Coinbureau channel will provide you with plenty of useful content each week, 101 blockchains is also a great learning resource, or you can simply search anything Crypto or Blockchain related and learn all about the topic.

Once you have made it through some of those videos and articles, you should now be able to talk the talk and have an informed and intelligent Blockchain-related conversation during an interview that might be enough to land you a job in one of the non-tech roles I mentioned earlier. If you are serious and want to take your learning to the next level, there are a number of courses available online or hosted at institutions, many that provide professionally recognized certifications and qualifications in the Blockchain industry. Here is a short list I have compiled that have been highly rated and are very popular:

Coursera– Blockchain: Foundations and Use Cases Offered by Consensys Academy

Consensys Academy– Blockchain Developer Online Bootcamp

Coursera– Blockchain Specialization

Udemy– Python and the Blockchain Technology

Berkeley University of California– Blockchain Fundamentals Professional Certificate (online via edX)

Udemy– Ethereum and Solidity: The Complete Developer’s Guide

Cloud Credential Council– Blockchain Foundation Certificate

Simplilearn also has a whole host of local and online Blockchain training courses including some free Blockchain Developer courses and have partnered with the Indian Institute of Technology Kanpur (IIT) to offer a Professional Certificate Program in Blockchain.

Professional Certificate Programs in Blockchain Courses are Available Image via Simplilearn

Blockchain Council offers exclusive blockchain certifications which are valid for a lifetime and are great for shining up that CV. Popular certifications offered by the Blockchain Council are:

• Certified Blockchain Expert
• Certified Blockchain Developer
• Certified Blockchain professional
• Hyperledger Certification
• Ethereum Certification
• Bitcoin Certification
• Cryptocurrency Certification

Top 10 Blockchain Skills Needed for Technical Roles Image via 101Blockchains

As Blockchain is becoming a massively in-demand skill, many post-secondary institutions are offering training and qualifications so if you are more of the classroom type you should check with your local educational institutions to see if they offer any programs to suit your needs as well.

Read Books

There have been some fantastic books published that can help give you that in-depth knowledge you need for a competitive edge and develop your views and opinions on the Blockchain space as a whole. Immersing yourself in as much knowledge as possible and reading the insights and perspectives of other experts in the field is never a bad idea nor is time spent wasted. As the saying goes, “the more you learn, the more you earn,” and these crypto books provide just that kind of learning material:

Blockchain Revolution by Don and Alex Tapscott

The Basics of Bitcoins and Blockchains by Antony Lewis

Cryptocurrency: The Future of Money by Edward Beckett

Free books on Github:

Mastering Bitcoin

Mastering Ethereum

Networking

If you already have some experience and value to offer, don’t be afraid to get involved in the community and network with those in the space. As the saying goes, “it’s not what you know, but who you know,” so get clicking around sites like LinkedIn, join some discussion forums on sites like Reddit, and try reaching out to teams working on interesting projects, you may be amazed at what opportunities sending a simple message can open up, you could be a single message away from connecting with the right person that could land you your dream job. Keep an eye open for events such as the annual Web Summit, Bloomberg Crypto Summit, European Blockchain Convention or other events like Polkadot, Cardano or Cosmos events for some excellent networking and prospecting opportunities.

Landing That Dream Job

Alright, now that you’ve levelled up your skills, read your crypto books and know what types of jobs you want, it is time to actually start hunting for job vacancies. Fortunately, there are a few job boards that hire specifically for positions within the Blockchain industry so you can zero in and only need to sift through the jobs that are relevant to the industry. In no particular order, here is a list of the most popular crypto-specific job websites:

Cryptojobslist.com

Crypto.jobs

Cryptocurrencyjobs.co

Coinality.com – This one is great for the true crypto enthusiast who wants to get paid in crypto.

Additionally, there are also endless numbers of crypto freelance opportunities to be found on sites like Fiverr and Upwork where you can post your skills and availability for hire, and the traditional sites like Indeed and Glassdoor are fantastic resources as well.

If working in “traditional” Blockchain roles isn’t “cutting edge” enough for you, why not take a stab at becoming one of the first people to get a job in a metaverse? Believe it or not, there are already people securing positions as digital real estate agents for metaverses like Decentraland and the Sandbox, there is also a need for event managers, property managers and guides for these digital worlds and the Bored Ape Yacht Club have even formed a virtual band solely existing in the metaverse and they need a band manager, so your imagination is the limit when it comes to finding work in the metaverse. Essentially, there is a good chance that many of the jobs that exist in the real world will also be needed in the metaverse, think marketing, gaming and advertising to start. Some metaverse jobs have started popping up on themetaversejobs.com.

The Band KINGSHIP has been Formed by the Bored Ape Yacht Club NFTs Opening up Positions in the Metaverse for Roles like Band Managers and Event Organizers Image via hypebeast

Closing Thoughts

This is a fantastic time to be considering a career in Blockchain technology and Cryptocurrency. Many companies across multiple sectors are seeing the potential benefits of this technology and are adopting Blockchain-based business solutions faster than ever and both commercial and retail adoption is rising faster than internet adoption did in the early ‘90s.  We are at an interesting time in this revolution where Blockchain tech and crypto are nowhere near mainstream adoption, though many businesses and government agencies with the foresight are seeing the potential in this tech and are looking to front-run the masses for a competitive edge. This results in the scenario where we currently find ourselves in where businesses and agencies are looking to hire a higher number of skilled positions than the general workforce is skilled enough to meet, so the demand for Blockchain experienced staff is far outpacing the supply meaning there are many opportunities and high salaries up for grabs for anyone looking to get into this industry.

Crypto Adoption is Outpacing Internet Adoption Image via chaindebrief

So, if you have the skills, the willingness to learn, or are brimming with innovation, entrepreneurial vision, passion and creativity then the sky is the limit for opportunities in the Blockchain industry. One really interesting publication by the World Economic Forum states that 65% of children in primary school will be working in jobs upon graduation that don’t even exist today, meaning that in ten years who knows what jobs will exist and what roles we will be working in so don’t be afraid to try something new and jump in because the job you land might not have even existed just a year ago. New roles and positions revolving around this evolving tech are being created and opening all the time, just keep an eye on those job boards, crypto communities, don’t be afraid to network with people in the industry, attend crypto events and conferences, or maybe give applying to the Coinbureau a shot by checking out our Career Page as we are always looking for top talent in the industry. Your dream job could be a couple of clicks away.

The post How to Launch your Blockchain Career Today! appeared first on Coin Bureau.

The thing about passive income is that it’s a long-term game. For most of us just starting out, it might be just a few drops that you get from your investments. With the magic of auto-compounding, those few drops can slowly build up to a trickle, then a stream.  With this in mind, the suggestions presented here are for cautious investors. The returns aren’t spectacular, especially if measured through the lenses of exponential crypto gains in 3-digit percentage points and more. However, they will still beat anything you can get from a bank these days. Investing in something new can be a daunting prospect. The fear of “what if I lose everything I invested?” is a very valid concern.  That’s why preserving capital is the most important thing, followed by growing profit. Alright, let’s see how we can get started in a relatively safe way.

The dream for most of the working class.

Staking on the blockchain

How it works

You get what you put in. Whatever token you deposit into a stakepool or with a validator, you get the same type of token back. There may or may not be a lock-up period involved. This depends on the blockchain project.

What are the risks? 

The biggest risk is the project falls over, whether because it’s falling behind in competitiveness or the people in the project lost interest in it. There’s also the risk of a rugpull, ie someone running away with all the money. The more established a project is, the least likely this will happen though.

What sort of APY can I expect?

Depending on the project you decide to stake on and where you stake them, APY ranges anywhere from 4.6% to 14%. If you’re interested to find out which are the best tokens for staking in terms of APT, check out this page for the most updated rates.

Which projects are worth looking into?

When it comes to deciding which projects to stake on, I see there being two types: Layer-1 blockchain projects and everything else. For the purpose of keeping things simple, the focus in this section is on the Layer-1 projects. They are the least riskiest ones because lots of applications are built on it. There’s a huge reliance on the blockchain to be in good shape. It may not look like it, but decentralised projects are quite competitive too. If it’s even slightly behind, there’s always something snapping at its heels, ready to take over its spot anytime. 

Staking PoS coins is a slow and steady way to get more of your favorite tokens

Within the Layer-1 projects, there are also major and minor players: 

Ethereum

There’s a Chinese saying “Women hold up half the sky”. Substitute “women” for Ethereum” and “sky” for “crypto world” and that’s pretty much the state of things now. Thanks to Ethereum and smart contracts, we get DeFi, NFTs and who knows what else coming down the road. It’s undergoing growing pains now as it transitions from a PoW to PoS consensus mechanism. As part of this change, it’s looking for people to stake ETH tokens on its platform. 

Risk of falling over: next to zero. With the amount of institutional interest in it, not to mention all the existing dApps relying on it, it’s the 400-pound gorilla next to the 800-pound one that is Bitcoin. 
Lock-up period: Yes, all ETH tokens staked cannot be withdrawn until after the migration is over, which could be another 1-2 years away. 

Solana

Touted as the next “ETH killer”, Solana has made great progress since its inception in 2017. Born later than Ethereum, it’s got serious VC money invested in it. Boasting a theoretical throughput of 710,000 transactions per second, its ecosystem has also grown by leaps and bounds within the past year, not to mention its impressive price gains of 600% in the past 5 months. 

Risk of falling over: very small. There is a small but growing institutional interest in it. The ecosystem is thriving, ie people are using the dApps in its ecosystem. It also has an active team of developers that are itching to chomp away at Ethereum’s share of the market. 
Lock-up period: No. However, tokens withdrawn may need to wait for the end of an epoch, which would be anywhere from a few minutes to a few days, depending where you are in the epoch when the withdrawal request was made. One epoch lasts for two days.

Cardano

Cardano started before Solana but got caught up by it in terms of progress. The verdict is still out on the future prospects of this project. As a peer-reviewed blockchain, it is a solid method, perhaps a tad bit too solid, ie it needs to get reviewed faster. There were high hopes for the Alonzo update but judging from the reaction of the community and onlookers, it did not go as well as expected.

Still, it was the no.3 project on the blockchain before being dethroned by Solana. It is also actively making inroads into Africa, one of the least-banked (and more corrupt) continents in the world. If, through the usage of cryptocurrency, it is able to help governments realise that corruption is not the only way to get profits, that would be one of the biggest blessings indeed. 

Risk of falling over: Small. The community support is strong and many believe in the founder Charles Hoskinson’s vision. The developers are presumably working hard to get things back on track. 
Lock-up period: No. Tokens can be withdrawn anytime. 

Minor Players

A number of smaller players are jostling for space in this territory and gaining adoption fast like Fantom, Avalanche, Terra to name a few. All of them are worth looking into with small to medium risks of failing (as of time of writing). 

How do I get into it?

There are two ways to start staking: through a validator or stakepool that you get to select on your own or through the exchanges or a third-party that may or may not involve giving up custody on your tokens. The one-two steps are: 

1. Select a project you want to stake your tokens in.
2. Choose where you want to stake them in.
3. Sit back and go do something fun while your asset starts working for you. Some of them require your account to be on at all times. Check on it every few months or so to make sure it’s growing at a happy and healthy pace. 

Disclaimer: I stake on Cardano via the Daedalus wallet and I hold SOL and ETH tokens too. 

Lending

One of the most common ways to earn interest on your crypto assets is to lend them out. There are plenty of lending platforms available. Most of them are separated into two types: centralised and decentralised. Both carry their own rewards and risks. 

The way money works: someone gets someone else’s money

CeFi Platforms

How it works

Deposit your crypto assets into the platform and get the interest in either the original token or its native token. These platforms allow you to convert fiat to crypto, hence there is a KYC process in place to protect against money-laundering. These platforms work for those who are new to crypto and would like an easy way to get onboard.

What are the risks? 

The biggest risk associated with this method is custody issues. You are basically (temporarily) transferring ownership of your assets to them for them to do as they see fit. This is no different from having money in the bank. With banks, if they fall over, there is the government coming to the rescue. For the platforms, most of them are insured up to a certain amount, but there is not much recourse if things go pear-shaped for all parties involved, ie more than one platform asking for the insurance entity, thus the insurer itself running out of money.  

There is also the issue of collateralisation. Some platforms require over-collateralisation, so that if there is huge volatility in the market, the collateralised assets get liquidated. This affects lenders because the liquidated assets acts as a kind of guarantee that you will get your deposits back. Therefore, when reviewing the platforms, also check out their Loan-to-value (LTV) ratio. The higher the ratio, the riskier it is for your deposits.

What sort of APY can I expect?

A brief comparison of the diagrams above show that APY can range anywhere from 5% – 12%. These are still fairly conservative numbers compared to serious yield-farming. However, they’re still nothing to sniff at.

Which projects are worth looking into?

BlockFi

BlockFi is one of the earliest established crypto lending and borrowing platforms in this space. In addition, they also offer trading services and partnered with Visa to offer a BlockFi/Visa Signature credit card that gives you 1.5% back in Bitcoin. When it comes to interest rates, small balances get higher rates than bigger balances. 

Sample rates from BlockFi Image via BlockFi

Insurance Risk Gemini, a licensed custodian regulated by the New York (State) Department of Financial Services (NYDFS), has BlockFi’s assets in custody. Its custodial solution is SOC2-compliant is recognised by Deloitte, one of the global major accounting firms. 95% of the assets are in cold storage and the rest are in hot wallets, which are then insured by Aon, a major insurance company. In other words, it’s as safe as it can get. 

Celsius

Another established name in the crypto lending space, Celsius rewards depositers with either the original token or the Celsius token, which gives borrowers a discount in interest rates if used as collateral. The founder, Alex Mashinsky, is fairly active in social media promoting the company. However, there are some rumours circulating about some of its business practices including rehypothecation, ie using depositers’ assets to act as collateral on behalf of the company. 

Similar to BlockFi, it encourages small balances over large ones: 

Sample rates from Celsius Image via AllAboutCelsius

Insurance Risk Fireblocks is the current custodian for Celsius’ assets in cold storage. It used to be BitGo. Of particular note is that assets deployed for generating yield and income are not insured in any way. Celsius claims that deployed assets are no longer controlled by them, thus not covered by Fireblocks. 

They have plans for a self-insurance scheme coming in Q4 2021  or Q1 2022 where users can opt-in for 0.5% to 1% of weekly rewards are paid into a self-insurance pool to cover for those deployed assets. 

YouHodler

Slightly less well-known is YouHodler, an up-and-coming platform in the crypto lending space. Headquartered in Switzerland and Cyprus, this platform offers a unique product called MultiHODL for lenders. It basically allows depositers to allocate a small percentage of their deposits to something risky with the potential to earn more while keeping the majority of the deposits safe. This is based on the Barbell Strategy introduced by Nassim Taleb, he of the “The Black Swan” book fame. 

Unlike the other two platforms, YouHodler doesn’t differentiate between small and large balances. Instead, they have a flat rate based on tokens deposited: 

Sample rate from YouHodler Image via YouHodler

Insurance Risk YouHodler uses Ledger Vault as its custodian, providing up to USD150million in pooled crime insurance. This is the same company that creates Ledger cold wallets for consumers, the Vault being the enterprise-version. They safeguard the keys so that only select people have access to them. 

Other than the aforementioned, there are also a few more out there that are worth taking a look at like Crypto.com, Nexo, Gemini etc. 

DeFi Platforms

How it works

When you deposit your crypto onto a DeFi platform, you get interest-bearing tokens generated by the platform. For  example, depositing ETH, you get xETH back. As the interest grows, you get more and more xETH. When you surrender the xETH back to the platform, you will then get more ETH than what you put in in the beginning. 

Unlike centralised platforms, there is no KYC process involved. This is also because there is no way for you to convert your fiat into cryptocurrency on these platforms. You’d need to have some other way of getting your hands on the crypto beforehand. These platforms also utilise a non-custodial approach, which means the assets always remain in your hands, or rather, wallets. 

What are the risks? 

Smart Contract risks These are essentially computer programs written by humans, which means that there is a potential for errors to occur, sometimes intentional, sometimes not. The worst-case scenario is that you lose what you put in. 

No insurance The platform itself doesn’t offer any insurance but there are other blockchain projects that allows you to buy insurance up to a certain amount. 

Systemic risks This is basically the entire blockchain project going pear-shaped due to various reasons. One of them can be due to poor liquidity. This means not enough people borrowing from it, thus you’re earning very little interest. 

What sort of APY can I expect?

Oddly enough, stablecoins and other more established tokens don’t get as a good a rate compared with CeFi platforms. These are usually around 2% – 3%. However, the newer blockchain projects like Curve Finance fetch quite a decent 10%. 

Which projects are worth looking into? 

Maker

According to DeFi Pulse, a reference website for all things DeFi, Maker is currently the most dominant DeFi lending platform with almost 17% market share in a market worth USD108 billion and growing by the day. It is one of the earliest known projects in the crypto world with DAI being one of the first crypto-backed stablecoins. 

The idea is for users to deposit crypto-assets and get DAI in return. As a stablecoin, DAI can be used to earn interest on other platforms. These crypto-assets are over-collateralized to counter the volatility of the market. If the value of the loan is greater than the value of collateral provided, liquidation occurs. 

MakerDAO homepage Image via MakerDAO

AAVE

The second spot for lending on DeFi Pulse is AAVE. It’s a “system of lending pools” where depositers can lend their crypto assets into pools, governed by smart contracts, in exchange for earning interest. Starting life on the Ethereum blockchain, it has branched out to be available on the Polygon and Avalanche blockchains. 

AAVE in its current incarnation was launched in 2020, but it has origins from 2017 when it was known as ETHLend. Back then, it was a peer-to-peer lending platform, which required someone else on the other end. After it switched to smart contracts, it was a success last year, even going head-to-head with Compound, the then-no. 1 DeFi lending platform. 

Rates on AAVE Image via AAVE

Compound

Compound is one of the first projects in the DeFi space. It pioneered the idea of issuing a ERC-20 version of the token deposited, so that the ERC-20 version can then be put to further use, acting as a foundation block for “money legos” commonly seen in yield-farming strategies. Other DeFi projects also adopted this method of generating yield upon yield, doubling or tripling the potential rewards, with a certain level of risk, of course. 

It’s the ERC-20 version that’s getting you the big bucks Image via Compound Finance

Holding dividend-paying tokens

If staking isn’t really your cup of tea, there is another way to earn passive income in a relatively safe manner, which is holding dividend-paying tokens. These are projects that share their profit with users who hold their native tokens. A few of these are tokens issued by crypto exchanges. 

How it works

Buy the platform’s tokens, hold it in an assigned space, and just wait for the dividends to come trickling in. 

What are the risks? 

The stability of the platform or blockchain project is the key thing to consider. As long as it’s getting used with gradual adoption, your investment will be safe.

What sort of APY can I expect?

Taking into account the variables of each token, a range of 5% – 15% APY is not unheard of.  

Which projects are worth looking into?

KuCoin Shares (KCS)

KuCoin is one of the more popular crypto exchanges around despite the centralised approach. The platform has lots of promotions going on, mainly related to margin and futures trading, which I don’t do. What I did do was buy KCS tokens to trade. Regardless of the amount of tokens you hold, whether in the Trading or Main account, KCS gives out bonuses on a regular basis. At the time of writing, its price has reached all-time highs. If you forget to collect your bonus, the platform notifies you to do so, which is a nice touch.

Notifications for collecting bonuses plus a balance of what you’ve received thus far. Image via KuCoin

The biggest risk to look out for is the platform keeling over. Since it is a centralised exchange based in Hong Kong, here’s to the Chinese government not trying to do any funny business with it. The platform also performs upgrades every now and then. Sometimes it makes tings better, other times, I wonder. 

VeChain

The VeChain blockchain project is one of the projects that have gained a lot of adoption from enterprise companies. It started out as a blockchain for supply management. By combining a physical tracking component, such as RFID (radio-frequency ID), QR codes etc and adding that information to the blockchain, each step of a product’s manufacturing steps and standards are clearly visible for all in the supply chain to see. 

From PwC (Big 4 auditing firm), LVMH (Louis Vuitton), Walmart China and BMW to many others, VeChain also works with governments in China and Cyprus to manage records. It was selected by the Chinese government to provide a system for storing tax and business registrations, certificates and audits for the Gui’An New Area. Meanwhile, a Cypriot hospital used the Vechain blockchain to record the first 100 vaccine records for Covid-19. 

By staking VET, stakers get VTHO which is used to pay for all transactions related to writing data to the blockchain. Rewards occur every 10 seconds when a new block is created. Atomic Wallet is about to offer 1.63% APY for staking VET through its platform. Exodus Wallet is also offering VET staking at 1.5% APY.

Risks The project has offices in Singapore and China. While I don’t see the Singapore government doing anything underhand, especially if it’s trying to position itself as the cryptocurrency hub of the world, I can’t say the same for China due to its track record. How much that will have an effect on the Chinese team is hard to tell. Let’s hope no undue influence is involved.

Other Players

Aside from these projects, there’s also NEO, Nexo (security token) and Wink (online casino) to name a few. As with everything else, please exercise caution and do some research by looking at the pros and cons. 

Tokenized Home Loans

While DeFi is the standard way for most crypto users to make money, the economy can’t purely be based on money making money all the time. At the heart of things, there is still a level of pragmatism and productivity involved. Blockchain technology together with smart contracts are well on its way to disrupting many sectors of the economy. One of the most likely sectors to face change is in the area of mortgages and real-estate.

Buy tokens instead of shares to get exposure into real-estate

How it works

Instead of investing in a real-estate index fund or buying shares of a real-estate company to get exposure to the real-estate sector, the general public now has the option of buying a tokenized version of a specific property. It doesn’t mean that you are the actual owner of the property. It’s that you own a share of the company that issues the bond that finances the property. The rental income generated will be shared amongst the token owners in proportion. These tokens can also be resold in secondary markets.

What are the risks? 

This is an emerging sector, so it’s fair to expect a certain amount of risk involved. Some of these risks are not specific to blockchain technology. These include:

• renters not paying rent 
• bad real-estate properties – when you don’t live there, how do you know if it’s a good property or not?
• the company financing the property falls over
• the owners of the property become insolvent and you are last in queue to get your investment back. Sometimes, there might not be anything left for you after all the creditors have been paid.

What sort of APY can I expect?

The APYs depends on the property you’ve decide to invest in, which could be from 20% – 50% and above. That sounds really yummy but as mentioned previously, it carries its own set of risks. 

Which projects are worth looking into?

The companies offering this are based in the US, thus all properties are located in the US. However, this does not preclude overseas investors from buying into those properties. This adds a layer of risk because you’d have to trust the evaluators who provide evaluation for the property. Either that or do your own research before jumping in.

Lofty AI

As the name implies, Lofty AI uses AI technology to vet properties for investors to invest in. The long and short of it is that:

1. It accumulates raw data from the real-estate market.
2. Applies statistical methods to look for features that may correspond to future real-estate price changes.
3. Extract these features and group them, applying a label to them.
4. Train a Deep-Neural Network (DNN) to identify and predict future prices.

If you would like to learn more about the methodology in details, here is the link for it. 

To get started:

• Register and open an account with them with KYC details. 
• Minimum amount to invest: $50
• Deposit the amount you want to invest in into the property that piques your interest
• Tokens will be sent to a Algorand wallet as the project is built on Algorand. Future interest/income will also be deposited directly into this wallet.

The property itself is managed by a professional property management company to ensure it is in good condition at all times. They also offer the ability to sell a property through their platform.

Some properties available for investment Image via LoftyAI

Vairt

What is offered at Vairt is similar to LoftyAI. The difference here is that they use their 100-point proprietary tool combined with third-party market data to evaluate the property. Also,

• The minimum amount to invest is $1500.
• The funds are in a separate custodial bank account for security.
• The properties are given 30 days to raise the funds needed. If the target is not reached, the money will be returned to the investor.

The important thing to note is that a Limited Liability Company (LLC) will be created for each property successfully funded. The investment, in the form of tokens are shares of the LLC, not the property itself. 

Some data on a property for investment consideration Image via Vairt

Other players

These two are just examples of what’s started happening in this space. To find out more, here is a list to consider if this is something that truly tickles your fancy. 

Any other options for passive income?

Aside from the 4 main choices presented, there are still more ways to squeeze more money out from your crypto assets. Some of them carry higher risks than others but I thought it worth mentioning:

Play-to-Earn Games

While not exactly passive income, play-to-earn games are in the midst of starting a new trend, especially among the younger crowd. If you’re going to play, why not earn some money on the side? Some of the games requires buying a NFT to get started, so there’s your investment there. After that, the in-game assets can be sold on secondary markets, or you get points for playing which then translates into crypto etc. 

Unlike the other types mentioned above, this method doesn’t rely on you putting some tokens or money somewhere, so there isn’t any kind of APY per se. The gains would primarily be measured by the gamer’s ability and whether the NFTs are of value in the secondary market, which can be quite arbitrary.

HNT Mining

A blockchain project called Helium Network (HNT) aims to provide coverage for IoT through short-wave radio frequency. To be a miner, purchase one of the modem-like devices to be a coverage provider. After that’s set-up, you can check, through an interface, how many tokens you can get. Be warned: due to the popularity of these devices, there is quite a long waiting period for one to show up at your doorstep.

Loads of hotspots in LA with some stats of one miner Image via Helium Explorer Scan

There is a balance between the number of miners and the number of users in an area to generate the optimum amount of return. Miners act as either Witnesses, Challengers, or Transmitters at any given time. Here are some stats for reference: 

• 3-5  Witnesses > 150 HNT  per month
• 5-15 Witnesses > 500 HNT  per month 
• 15<  Witnesses > 800 HNT per month
  (source)

BAT Airdrop

Brave Browser offers BAT tokens if you opt-in to receive ads from them. They also do ad-blockers if you don’t want to see any ads. It’s a crypto-friendly browser in the sense that the ads are usually for blockchain projects. What they give isn’t much but it’s better than nothing. The tokens are directly deposited into the Uphold wallet for safekeeping. You can also check out this link to get a list of airdrops coming soon. Most of them require that you hold one type of crypto token beforehand or do an action as proof of participation.

Brave Browser offers BAT tokens for viewing ads Image via Brave

Looking at my own history of receiving BAT, I’m getting anywhere between 3-4 BAT a month. Of course, I can further stretch that by depositing the BAT tokens into one of the crypto lending platforms and earn an extra 3% interest on average. For something I’m getting free, it’s quite a good deal!

Conclusion

The world of crypto offers many opportunities for everyone to make some extra money. While crypto is seen as a high risk asset, due to the volatility in pricing, as more and more industries are affected, the utility and use-cases expand so that it’s not hard to imagine a world where tokenization of real-world items is the norm, just as we have generations of people growing up unable to imagine a world without the internet and fibre connections. 

Blockchain projects is all about network effects and group participation. Unlike web2.0 social media where the maximum value is in reaching the most number of users, the biggest value for blockchain projects is for early adopters. Do you have the foresight to become one?

The post Crypto Passive Income for Beginners appeared first on Coin Bureau.

Keep reading to learn what this ETF means to us regular folk, and if it’s at all a good way to get some Bitcoin exposure. I’ll also talk about some other ways to get Bitcoin exposure and list the pros and cons so that you can go out there and make the best choice based on the information available.

What are Futures Backed Bitcoin ETFs?

When it comes to a crypto ETF we have two options, a spot ETF or a futures ETF. The difference between these two is quite substantial and you might even have read headlines on how bad futures backed ETFs are. So, what are they?

Futures backed ETFs are basically not tied to the underlying asset by any means. It’s based on futures contracts (in this case Bitcoin futures) and with these the purpose is to try and mirror the price of the underlying asset. But what are these futures contracts? They are derivative trading tools that allow two parties to buy/sell Bitcoin at a predetermined price and date. Here’s an example, let’s say I believe that Bitcoin will trade at $100k when December ends. I’m sure about this so I will enter into a contract saying that I’ll buy 1 Bitcoin at today’s prices (roughly $65,000) at anytime through the end of December. Then when December ends, I will have to buy that Bitcoin I promised regardless of the price. Now, if Bitcoin in fact trades at $100k I’ll make an instant profit of $35k. However, Bitcoin’s price could also be lower than $65k and I would still have to buy. The reason the seller will enter this contract is because they protect themselves from price volatility, regardless of what happens they’ll get their $65k in two months, plus the premium for selling the contract. The reason why I will enter this contract is to speculate on something without maybe having the cash to currently buy $65k worth of BTC, I only have to pay for the contract, which might only cost 1% or less of that $65k. However, often these contracts are traded even before the price expiries, since if Bitcoin seems to go close to that $100k then naturally the contract that you can buy Bitcoin for $65k will be quite valuable.

Placing bets and predicting on future prices, that’s what futures are all about.

Hopefully, you got a quick sense of what futures are, but this was just a quick introduction and just by searching for futures contracts on the internet you’ll find loads of more information. The important part was just to highlight that these contracts are only bets on paper of a certain assets price action. There’s no actual Bitcoin involved in Bitcoin futures.

So, using these instruments the Bitcoin ETFs we have today try to mirror the price of Bitcoin by trading these instruments on the CME (Chicago Mercantile Exchange). This means that by buying these ETFs you’ll only own the paper on which these contracts are written. Buying the ETF will also not have an impact on the price of Bitcoin since no one is going to buy the physical asset.

Why Do We Need this?

The reason we need a Bitcoin ETF and preferably a spot ETF is because it allows many institutions, hedge funds and companies to gain access to crypto. I listened to an interview with Kevin O’Leary where he talked about institutional interest in cryptocurrency and if he’s right there’s a wave of capital coming. The question is why hasn’t it arrived already?

This is because there are legal issues. What O’Leary mentioned about his first crypto purchases is that it was a difficult process. All he’s advisors, both legal and business, told him that it isn’t possible. There are too many regulatory issues regarding different filings that have to be done to satisfy tax authorities, and the financial crimes department, and more. On top of that, for some institutions managing other people’s money storing crypto is a huge issue. They don’t know how or where they can reliably store their cryptos. Therefore, buying crypto directly isn’t an option for many. Also, many US companies and institutions aren’t allowed to go abroad buying products that aren’t approved by a US regulator, otherwise many would probably pile into Canadian Bitcoin ETFs. However, we’ll talk more about other products and ways to gain Bitcoin exposure in the next section.

Everyone should be allowed Bitcoin, no taxes no restrictions, am I right?

These were just a few of the reasons why there are problems for US institutions to gain access to Bitcoin, and why O’Leary, along with others, believe a lot of capital will flood into the market once we see a good product for gaining exposure to Bitcoin. Of course, there are other issues too that restrain capital from flooding into Bitcoin like ESG (Environmental, Social, and Governance), but that’s out of the scope of this article. However, what I just want to mention is that when O’Leary talked about how much money there is waiting to come into crypto he used the term trillions, yes you read it correctly not millions, not billion but trillion with a T as in To the moon.

Other Ways to Gain Exposure

Although this article was supposed to only compare Bitcoin futures ETF to physical Bitcoin, I just want to point out that there are other ways to gain exposure. For many, those other options could even be better.

First, I want to mention something that I bet many of you have heard about, the Grayscale Bitcoin trust. Grayscale is the largest digital asset manager in the world with over $60 billion in AUM (assets under Management) and the Bitcoin trust takes up a huge chunk of that with just over $40 billion in AUM. The GBTC works almost like a Bitcoin spot ETF but there are a few structural differences. ETFs are more flexible than GBTC, ETFs can create and redeem shares based on demand which makes them typically trade extremely close to their net asset value (NAV). This is compared to GBTC where there’s a fixed number of shares and low flexibility. This has caused GBTC to trade at either a high premium or discount compared to its NAV. Therefore, although your purchase in HBTC is backed by physical Bitcoin its price can differentiate due to factors unrelated to Bitcoin.

Here’s a look at GBTC. As you can see there’s quite a hefty discount. Images via Grayscale

Another way to gain Bitcoin exposure is buying equities with Bitcoin exposure. Typically, people turn to either mining companies or MicroStrategy. However, these too can fluctuate due to factors not related to Bitcoin. For example, mining companies do have to run their operations with purchases of hardware and electricity. If they were to purchase bad equipment or an accident happens in their facility it will drop their share price significantly. Therefore, these aren’t perfect when seeking Bitcoin exposure. However, it is possible to mitigate the risk of one company’s failure by buying into an ETF that holds a variety of these companies. However, be careful when buying blockchain ETFs since many hold companies like IBM, Nvidia and some even Nokia, and just FYI these do not really mirror the price of Bitcoin, not even slightly.

If you’re looking to buy some crypto-related equities I suggest you take a look at this piece. Image via Coin Bureau

The third way to gain exposure is to buy a spot ETF. As I mentioned earlier there are Canadian ETFs as one example. If you have the ability, you can buy a Bitcoin spot ETF from the Canadian stock markets. These are highly popular and even the CEO of Ark Invest, Cathie Wood, planned on switching their Bitcoin allocation from GBTC to one of these Canadian spot ETFs.

What’s Best? 

For an individual retail investor like you and me I would almost always recommend buying the real deal. It’s the only way you can truly participate in the network Bitcoin was meant to be. When owning your own Bitcoin and storing it without centralized entities there is no one that can take that away from you, which is exactly what Bitcoin is meant for. Only you have access to the coins, and you can do whatever you want with them. However, there are risks with this too, like losing your private key, which is why I suggest you watch Guy’s video on crypto custody to avoid these silly mistakes.

I said I would ALMOST always recommend the real deal, but not always. That’s because people have different needs, and from the top of my head I can come up with a few examples on when gaining Bitcoin exposure some other way could be the way to go.

First, some countries have restrictions on trading cryptocurrency. Also, if you’re extremely new and still unsure on what your country’s stance towards cryptocurrency is, then it might be worth gaining Bitcoin exposure some other way. However, my preference would not be to buy a futures ETF but rather either a spot ETF from Canada or GBTC. This is because I feel like without some physical Bitcoin being bought it won’t be “real”. And additionally, the fees are often lower for physically backed since trading futures contracts to mirror the price adds up a lot of costs.

Second, which is kind of related to restrictions, is taxes. If it’s too much trouble for you to manually report taxes and keep track of everything then you might want to consider a simpler solution. For example, if I we’re to buy the BITO ETF then I know that since I’m buying it from a stock market through my traditional native stockbroker, they will automatically provide tax documentation. However, if I were to buy a physical Bitcoin, I’d have to keep track of the exact buy price, sell price, and trading fees. Then, I would also have to manually report and pay the taxes, and finally, I would have to be prepared to dig up the required paperwork if someone were to ask me to prove everything. This is naturally something many are willing to do, you just have to be careful and do it correctly.

If you don’t love paperwork then you can take the easy way out. I admit, taxes can be a pain in the …

This brings us also to the third and final reason, clumsiness. If you’re clumsy and have a tendency to not be the most organized, then dealing with cryptocurrencies in a country with relatively strict regulations can be tough. You don’t want to be sitting on thousands of dollars in gains without having a clue how to pay taxes or do the correct filings. Additionally, and even more importantly, you need to store Bitcoin correctly. It’s not that great to store your Bitcoins in a cold wallet if you have a tendency to forget and lose passwords. Remember, if you lose your private key then that’s too bad, you won’t get your money back. So, if you have a tendency to lose stuff or not be organized then consider getting exposure some other way.

Lastly to remind you again, if you do decide to go with something other than Bitcoin itself then at least find something which buys that for you. GBTC might be a good bet and if you read the next section, I’ll tell you why. Additionally, mining companies can be quite good at mirroring Bitcoin’s price and can even outperform it. That’s because scaling up their business will impact their price just as much as a rise in Bitcoin’s price.

GBTC Possibilities

The reason why I said that GBTC could be a good pick is because they have plans to convert their trust to a spot backed Bitcoin ETF. Why this is bullish for all of us is the previously mentioned flow of money waiting to get in. But what makes it bullish for you if you buy GBTC is the possibility of instant profit. You might recall that GBTC currently trades at a discount to the underlying Bitcoin and it’s currently something above closer to 15 %. However, because the settlement mechanism is much more efficient for an ETF there is speculation that the discount would quickly vanish if the trust was converted to a spot ETF. This means that you as an GBTC investor would both benefit from the price action of Bitcoin as well as receive the free 15% profit if the speculators are correct.

Conclusion

I know I gave quite a negative look on futures backed Bitcoin ETFs, it’s just that the product really isn’t great. However, what is great is seeing that product being traded. That’s because getting a Bitcoin ETF approved by the SEC is a huge milestone. Speculation on a Bitcoin ETF has been going on since 2013 and now we finally got it. Yes, it wasn’t what we hoped for but it’s at least something. It shows that Bitcoin adoption is growing. Braking trading records with a product that isn’t even good shows everyone how much demand there is for Bitcoin. Now we just have to wait for the real ETF to be released. Hopefully, we’ll see that in early 2022.

Lastly, I quickly want to touch briefly on an article I read on Coin Telegraph about a carbon neutral spot ETF being launched in Canada. As a I mentioned there are doubts about Bitcoin ESG values with emphasis on the letter E due to mining. This just got me thinking that maybe a carbon neutral ETF could be something that not only the SEC might like, but also many institutions that are currently worrying about mining and its impact on our climate. Anyway, a spot ETF is coming sooner or later, whether it be by Grayscale or someone else, and when it comes it will be huge.

The post Should You Use Bitcoin ETFs for Bitcoin Exposure? appeared first on Coin Bureau.

Impressive numbers Image via PancakeSwap Finance

Introduction

PancakeSwap is one of the top DeFi protocols on the Binance Smart Chain with some decent metrics. BNB tokens are used to pay for gas fees on this protocol. Users are rewarded with their native token CAKE that allows them to participate more fully by voting, playing lottery, and making predictions, just to name a few. 

The first thing that caught my eye immediately when the homepage loaded is the cute sleepy-eyed bunny floating around with the bottle pack behind its back. This image alone is enough to convince me that the website designers surely have some intention of getting more women to jump onboard their platform. Given the skewed male-female ratio in the crypto world, the efforts from the design team at Pancake Swap is laudable, and I’m buying it! Ok, no more staring at cute bunny, let’s get down to business. 

Welcome to PancakeSwap

Getting Started with PancakeSwap

1. Connect Wallet

Connect a Web3.0 wallet with the platform. The usual suspects are here plus some minor players that are displayed upon clicking the three dots. There’s even a handy guide at the bottom to show you how to connect to wallets if you need help.

Choose your favorite wallets to connect with the platform

2. Customizing the platform for your experience. (optional)

If you’re eager to get started, you can skip this step. However, taking a bit of time for customisation might make for more pleasing future engagement. Next to the price of the CAKE token is a globe icon for language selection. Scroll down if you don’t see your language. They have a good variety so it’s highly likely you will find what you’re looking for. The cogwheel icon next to it is the Settings icon. Hover your mouse over the mini Help button next to each setting for additional information about it. 

Select your language and change settings where applicable

Slippage Tolerance – For those who are unfamiliar with the concept of slippage, it means that the order is fulfilled at a price different from what you expected. If it exceeds the tolerance level selected, the transaction will not go through.

Let’s say you want to swap 10 CAKE tokens for BNB. The price per CAKE token is $18.50. With a 0.5% slippage, you accept the price range of $18.40 – $18.59. Any transactions beyond that range won’t get put through.

Tx deadline (mins) – due to traffic jam writing to the blockchain, how long are you willing to wait before calling off the transaction? 

Expert Mode – only for those who know what they’re doing.

Disable Multihops – Sometimes, swapping two tokens isn’t as straightforward as A to B. It might involve other tokens acting as a go-between. Disabling it means you’re only taking direct flights, no stopovers in between. 

Flippy sounds – On by default (and they sound cute too!)

One other piece of prep-work you might need to do is to set a profile. You can do that by hovering the mouse over the wallet to reveal the dropdown menu. Here is also where you can check your past transactions and check out any NFTs you have in your collection. Since the profile set-up is part of the NFT section, I will go through it over there.

The guide is organised by lowest to highest risk to help readers of all risk levels get started as quickly as possible. A quick note: risk is defined as “the possibility of losing money”, so the lower the risk level, the least likely you will lose money. If you know your risk level, feel free to skip to the ones that appeal to you. Now let the fun begin with (drumroll, please)…

Syrup Pool (Risk level 1)

One of the easiest ways to experience the platform and have some skin in the game is by staking tokens in the Syrup Pool. Most of the pools have a limited time to allow people to stake their tokens in them, except for the CAKE pool which has no time limit. The pools also require you to do some manual farming, i.e. you need to click on the Harvest button. The only exception is the AutoCAKE pool that do the harvesting for you. It really is set-and-forget! The APRs, ranging from 50.15% to 132.55%, aren’t too bad either, in exchange for little to no work needed on the users’ end.

Take note of the 0.1% unstaking fee if you change your mind within 72 hours every time you manually deposit tokens to the pool. There is also a 2% performance fee for every withdrawal made, which they call yield harvest. CAKE tokens collected from these fees are burned to keep the token deflationary. 

In the Syrup Pools, there is a special reward called Auto CAKE Bounty that incentivises users to stake in the Auto CAKE pool as they are seen to be providing a service to other users. 

How to Get In (Adding to the Pool)

The idea of auto-compounding sits well with me so I’m going ahead by clicking the Enable button to gain access to the pool. There is a $0.12 transaction fee which I pay through the Metamask wallet. 

Yummy Syrup that makes CAKE taste soo much better

Once enabled, I click the Stake button and am greeted with a pop-up window asking for input. While it’s possible to type the amount I want, it’s just a lot more fun using the bunny slider, which was what I did. Based on the amount intended for staking, the platform calculates the annual ROI at current rates.

Look how much I can get for doing nothing!

Another cool feature about the calculator icon next to it lets you key in your desired ROI so you can see how many tokens you would need to stake to make that amount of money.

You get what you put in

I went ahead to confirm the amount to stake, paid the gas fee, and voila! I’m in the game.

Let’s start earning, baby!

If you choose to join the manual CAKE pool, you will also get Syrup tokens, which are basically IOUs to prove you own the CAKE tokens. These will be returned to the platform when you withdraw from the pool. It’s important that you have the same amount of Syrup tokens as the CAKE tokens you want to withdraw.

How to Get Out (Removing from the Pool)

Getting out is also easy. Simply click the ‘-‘ button and enter / use the bunny slider to key-in how much you want to take back. The Unstaking Fee is calculated in CAKE. Click Confirm to continue.

Getting out safely and easily

After clicking Confirm, you will need to pay the gas fee to complete the transaction.

Trade | Exchange (Risk level 1)

Exchange is for swapping one token for another. To swap, the top section is what the token you want to get rid of. The bottom section is the token you want to acquire. By default, the protocol displays tokens only on the Binance Smart Chain.

Choose the pair of tokens to swap

If you want to see more tokens on the list, there is the option to add them through the Manage Tokens function. Selecting either the PancakeSwap Top 100 or PancakeSwap Extended would generally yield what you might be looking for. You can also import lists of tokens by its IPFS or ENS name.

More tokens to choose from

If you have a particular token in mind that you’d like to swap for that’s nowhere in the list, click on the Tokens tab and enter the token’s Contract number into the field. Once it appears, click the Import button to proceed to the next step. A warning will appear. This is a good time to check that the token you intend to swap to is a legit one. It pays to verify it on BscScan just in case. Click Import if you’re really, really sure.  It will appear on the list and be available for an exchange. 

Be careful when adding an unknown token to the list.

By clicking on the Swap button, I now have a chance to confirm whether I want the trade to happen. If there are changes to the price, it will also be reflected here, giving me another chance to say yay or nay. After I’ve accepted the price, the Confirm Swap button lights up. I accept the confirmation via my Metamask wallet, and the swap is complete. I can also view the transaction on the Binance Smart Chain.

The swapping process

Price Impact refers to how this order impacts the availability of tokens available in the liquidity pool. The smaller the order, the less impact it will have. 

The Liquidity Provider fee is a 0.25% fee, broken down as follows: 

0.17% – for liquidity providers
0.03% – for the Pancake Swap Treasury
0.05% – for buying back CAKE to be burnt.

Trade | Liquidity (Risk Level 2)

If you want to give liquidity pools a try, this is the place to do so. If you’re new to the concept of liquidity pools, you can watch this video to learn more together with its associated risks. In summary, you can be a liquidity provider by putting forward a pair of tokens of equal value with each other. Others will be able to borrow from this pool and pay fees which you can earn by being part of the pool. You get liquidity provider (LP) tokens that act as proof of your participation in the pool which are deposited into your wallet. Simply return them to the platform to get your staked tokens back.

Click on the +Add Liquidity button to get started and select the pair of tokens you want to be a liquidity provider for together with the amount involved.

Joining in the liquidity pool

Enable CAKE to confirm participation of the pool. You can also see your share of the pool with what you are planning to offer. The 0.17% liquidity provider fee will be distributed to each contributor of the pool proportionate to their share. 

Check everything looks good and click Confirm Supply

Once you have the LP tokens in your wallet, it’s time for it to earn its keep by putting it to work in a …

Farm (Risk level 2)

We have a list of the farms available to earn more money from. What you’ll earn is the CAKE token. The main factors affecting the rate of exchange include the annual percentage rate (APR), liquidity, and Multiplier. Hover the mouse over the mini Help icon for a description of the Multiplier which mainly deals with the number of CAKE tokens produced in this farm. You can also sort the list by Hot, APR, Multiplied, Earned and Liquidity metric in the Sort By dropdown list. If there is a particular farm you’re looking for, put in the LP token in the Search section. 

List of Farms available to plant seeds in

The ROI calculator (same as the one seen previously) is also available here to help you calculate your potential ROI. It is next to the APR rate. 

How To Farm

To get started, select the farm you want to be a part of by clicking on the Enable button. Pay the gas fee associated with gaining access to this plot of farming land. The Enable button changes to Stake LP button.

Gain access to the farm you want.

Click the Stake LP button to confirm the amount of LP tokens you want to stake.

Stake ’em, grow’ em!

Congratulations! You’re officially a farmer. Don’t forget to harvest the tokens when they’re ready! Watch out for the harvest fee though. While it’s up to you to decide when to harvest, it’s worth keeping in mind what you’d like to get after the fees are deducted. Different wallets may have slightly differing fees.

Wait for your crops to grow.

Adding/Removing LP Tokens

If you’d like to add or remove the LP tokens, click the ‘-‘/’+’ button and a window pops up for you to key-in what you want to do. Add/remove tokens manually or use the MAX button to add/remove all the LP tokens.

Remove your tokens here

Initial Farm Offerings (IFO)

Be one of the first to get your hands on some brand-spanking new PancakeSwap tokens as soon as they are available. As you know in crypto, early adopters take the most rewards! These IFOs are available for a limited time only, so check back regularly for the appearance of new farms. 

The guide down is a mini-roadmap showing you how to take part. Basically, the steps are:

1. Activate your Profile. Scroll down this article to learn about this in the Set Up a Profile section.
2. Get CAKE-BNB LP tokens. These are needed as currency to buy the IFO sale tokens. 
3. When the IFO sales are live, use the LP tokens to swap/buy the new tokens on sale. There are two kinds of sales: Basic and Unlimited. 
   Basic Sale limits the number of LP tokens that can be committed but each token yields a higher return. Unlimited Sale, as the name suggests, puts no limit on the number of tokens committed, but additional fees will be charged.
4. Last but not least, claim the IFO tokens bought when the sale is finished and the unspent LP tokens will be returned to your wallet.

How to take part in new farm offerings

An example of a Initial Farm Offering (IFO)

Community Farm Auction

Another way to participate in the Farm section without being an actual farmer is to bid for the right to host a Farm on PancakeSwap for 7 days. If you’re interested, click  the Apply for a Farm/Pool button to get started. This will lead you to two GoogleDoc forms. Select the one that represents the type of farm you want to operate and fill out the form. Only approved projects will be able to bid for a farm to be set-up in PancakeSwap. CAKE tokens are required for the bid. You can always take a peek at current bids for new farms too. Select the three buttons next to a farm you’re interested in to find out more. 

List of farms bidding to get set up to issue LP tokens.

Prediction: Beta version (Risk Level 4.5)

If you fancy yourself to be a dab hand with the market charts, test yourself by making predictions on the BNBUSDT price during one of several rounds by putting down CAKE tokens to back up your guess. If you guess right, you could stand to win a nice chunk of change. If not, there’s always the next round. Since this product is still in Beta, you need to sign a T&C saying you understand the risks involved. Also, once you’ve decided on your position and put down BNB to back it, you can’t change your mind, so bet carefully! 

Here’s how it works: 

• If you click “UP” and the closing price is higher than the locked price at the end of the 5-min round, you win! If not, you lose.
• If you click “DOWN” and the closing price is lower than the locked price, you win! if not, you lose.

How to make a prediction

Before you begin, check the timer in the top-right area. Make sure you have plenty of time left before making a prediction. Give yourself at least a minute or so. Next, select “UP” or “DOWN” in the upcoming round marked “Next”. 

Make predictions before time runs out

Each pool carries different level of rewards known as reward multiplier. This changes based on people’s predictions, reflected in the “Prize Pool”, just above the buttons. Let’s go with UP. This brings up a new window, asking you to “Commit” some BNB to back up your prediction. Enter, click the percentage button or slide in your bets. Click Confirm when you’re satisfied.

Place yer bets!

There will be a short wait to ensure there is enough time to participate in the upcoming round. If successful, the “Entered” message will pop up. You’re ready to go! You can watch the price update during the 5 minutes if you like. However, it is not possible to change your mind once your bet is in.

Will I be right? Yes? No?

The Results

After the 5 minutes is up, the results get calculated, indicated by the “LIVE” window changing to “Calculating” to “Expired”. The results will be displayed either as a green up arrow or red down arrow.

The moment you’ve been waiting for

Viewing Past Results

It’s likely that you may step away for a while, or a long time, from the Predictions page and missed out on seeing the result when it is announced. Fear not, there’s a way to reverse time (sort of)!

Click on the left/right arrows next to the bunny icon or the icon next to the timer. The “History” panel pops up with information on the most recent round together with any winnings you might be eligible for. Click on the round for more information.

A historical record of previous bets placed.

Collecting Past and Present Winnings

If you are the grand winner of the round, you get to click on the Collect Winnings button. A new window pops up showing you your reward. Click the Confirm button to collect the money into your wallet. From the History window above, you can also check for winnings from past rounds and collect them too.

Money money please hop in.

Viewing historic wins and losses

If you have done more than your fair share of predictions and want to know what your track record looks like, click on the PNL tab in the History window. You’ll see some stats to give you an idea how (un)successful you were. Perhaps these stats can help you up your game in the future? 

Your track record of past predictions

Lottery (Risk Level 5) 

This is nothing more than going to the casino and having a roll of the dice on roulette. The chances of losing your money is very high. However, if Lady Luck is passing by in your neighbourhood, it’s worth a shot! There is a fixed number of tokens for each pool. More winners in a pool means less tokens for everyone. 

Feeling Lucky?

Here’s how it works:

• Click Buy Ticket -> Enable button to gain access to this product. 
• Each ticket costs about USD5 in CAKE tokens. You get a discount for buying more. 
• You can choose to Buy Instantly to generate a random 6-digit number or put in your lucky numbers to feel more in control. 

I leave my Fate to faith.

• Match your number with the one revealed in order from left to right. While it’s great that you can win a prize with just the first digit, it’s always better to have more matches for a higher prize. 

As it turns out, better luck next time! 

No matches of the first number.

PancakeSwap Analytics

PancakeSwap has their own analytics page to help users gain a clear picture of the state of things in bunny land. These stats are categorised in three ways: Overview, Pools, and Tokens.

Overview

As the name implies, this is the general picture consisting of the following 5 elements: liquidity, 24H volume, top tokens and top pools, ordered by the 24H volume, and all transactions in bunny land in the interest of transparency. These transactions can be further filtered by swaps, adds, and removes. If you know what you’re looking for, you can also search for it through the search bar on the top-right corner.

The lowdown of what’s happening in bunny land

Pools

This section gives you the list of pools similar to what you see in the Overview section. Clicking on an individual pool leads you to a more detailed view of it. There is a Add Liquidity button and Trade button, making this a one-stop place to do everything you need. You can also save this to your Watchlist by clicking on the star button at the top-right corner of the page. 

One-stop place for all things pool-related

Tokens

Just like the Pools section, this area is all about the tokens. Individual stats for each token including the pools that use them and transactions are also visible here. Current top movers are also shown here. 

Looking for a top-moving token? Find it here!

Learn more about your favourite token here

NFT Market

The team at PancakeSwap knows that not everyone is a yield-chasing farmer. With the amount of work they’ve put in to design the webpage for maximum cuteness, it makes perfect sense to monetize that cuteness to bits by offering bunnies (and other types) for sale in their own NFT Market. Without further ado, let’s go (I can’t wait to get my hands on those bunnies)!

Overview

The main page gives you an idea of the kinds of NFT collections available in the market. These collections aren’t exclusive by any means (most of them are on OpenSea), but you might be able to snag one at a good price here, especially for the ones designed by the PancakeSwap team. 

Welcome to the market!

Collections

The first collection I want to find out more about are the Pancake Bunnies. Each collection has 4 main stats: number of Items, Items listed, Lowest value and trading Volume (in BNB). Click on the Traits tab to see the bunnies sorted by rarity together with their corresponding prices. 

So here’s where all the bunnies hang out…

Why’s that bunny worth 100BNB?!

Other collections that are more similar to the CryptoPunks style can be filtered by other characteristics such as hair, eyes, accessory etc. Here’s an example with BornBadGirls (yeah, girls rock!).

All girls are a combination of traits that make them unique.

All traits individually sorted by rarity.

Clicking on the individual bunny (ahem, item/character) gives you some detailed stats and who’s selling in case you’d like to buy from them, as opposed to buying it directly from the platform. However, it doesn’t mention the reason for the rarity, which would be nice to know. It is possible to find out based on analysing the traits but that’s a roundabout way. My best guess is the low supply count number.

The most expensive bunny in the collection

Now that you’ve gotten a glimpse of the rarity factor for each Item, it’s time to get our hands on one of them! To do that we need to activate our profile.

Setting Up a Profile

Hover the mouse over your wallet connection and go to “Make a Profile”. You can also check your wallet to see how many CAKE tokens you have.

Check to see if you need to make any top-ups to your wallet.

After clicking on “Make a Profile”, you’ll be greeted with the first step, picking a NFT as your profile avatar. If you’d like to take a look at the stats for the characters offered, feel free to go to the Pancake Bunnies collection and check them out. Once you’ve decided which one takes your fancy, make your choice here. Because this is a beginner NFT, the cost is fairly low at 1 CAKE. When you’re happy with your choice, click the Enable button to pay the transaction fee. Once paid, the Confirm button lights up allowing you to mint the NFT. Click Confirm to mint the NFT and pay the gas fee. 

Time to get my grubby hands on a bunny!

Set your Profile Picture with the newly-minted NFT by clicking the Enable button which triggers another transaction fee. Once paid, the Next Step button lights up.

Sunny is gonna be me

The next step is to join a team. There isn’t a lot of information about the teams, so it’s entirely up to you which one you choose. As of now, there aren’t any special benefits but this choice can’t be undone. Choose whichever tickles your fancy and click Next Step. 

Try closing your eyes and pick one

The most important step is finally here: choosing your name. If you want to maintain a consistent presence, you probably already know what name you want to use. Some of you might like to take this chance to create a new identity. Whatever you decide, know that you can’t change it later on, so it’s ok to take some time for this. Click “Confirm” when you’re ready, and a Signature Request pops up asking for your signature. Click the “Sign” button and that cause the Complete Profile button to light up.

Pick a name you like.

Click the Complete Profile button to Enable and Confirm this transaction. 

The last time you need to pay gas fee for this action.

Ta-da! Profile is now complete!

Voting

All blockchain projects thrive on community participation and this is no exception. Having invested what may be a fair amount of money on the platform, it would make sense to also have an active voice in how the platform is run. The most obvious way to do so would be to vote on proposals, or make one if you have a good idea on how to make it better. 

To make a proposal, simply click on the “Make a Proposal” button and fill in the form outlying your proposal. 

There are two kinds of proposals to vote for: Core and Community. Each kind comes with three statuses: Vote Now, Soon and Closed, ie past proposals.

Check out proposals listed to have an idea of what people are interested in.

Click on the arrow to get details of the proposal. In this page, the Current Results reflect the number and percentage of votes collected thus far. To cast your vote, click either the Yes or No button and click “Cast Vote”. 

Cast your vote for a worthwhile cause.

Unfortunately, I don’t hold enough CAKE to be able to put in a vote. 

Uh oh, need more CAKE!

Conclusion

Now that you have a good understanding of how the platform works and the various ways you can choose to participate on it, are you keen to get started? If you are, here’s my suggestion to get the most out of it, in the following order: 

1. Get some BNB and CAKE tokens into your wallet with a ratio of 1.1 : 25. If you have one or the other, use the Exchange to help you achieve that ratio. The 0.1 is to help with the gas fees of which there are quite a number, even though the amount is a small one. An exchange between two tokens can easily result in paying gas fees two or three times.
2. Stake the CAKE in the Auto CAKE Syrup Pool for gain. This is practically free money. Use the ROI Calculator to figure out how much you can get as rewards based on current APR. Some other tokens might give you insane APR but those are usually quite unstable so unless you’re the type whose eyes are glued to the page more than you spend sleeping, CAKE is a much safer bet. 
3. Harvest the rewards from the pool periodically and join the CAKE-BNB liquidity pool to get LP tokens. Where possible, try to increase your share of the pool to get more.

At this point, you have a few ways to put the tokens to good use: 

4a. Farm the LP tokens in the farm of your choice to get more CAKE. You can put the extra CAKE back into the Syrup Pool to get even more CAKE! 
4b. Use some of the LP tokens to get into Initial Farm Offerings. This is a short-term strategy because most of the farm pools are only valid for 7 days, so if you have a small chunk of spare time, it’s worth getting into it but it requires close monitoring and it is quite high risk. However, those insane APRs can potentially net you some nice gains that you can then splurge on some NFTs. After all, life’s not all about making money. If you get the occasional itch to take a walk on the wild side, try your hand at a few lottery tickets. 

One thing I’ve learnt about buying lottery tickets is always set your own numbers, especially the first one. If you buy 4 tickets, and set a different beginning number per ticket, you have a higher chance of winning something since matching just the first number is enough.

If chart-reading and TA is your thing, then you might be able to make some nice cash with predictions. The downside is that page is in Beta, which means it doesn’t always work, thus not to be relied on for any kind of steady income. 

Oh, and always have enough CAKE to be able to vote in proposals that appeal to you. True decentralisation requires everyone to do their own bit, so if you like the platform to stay healthy, please vote. 

The post Make a Killing on the Cute and Potentially Lethal PancakeSwap appeared first on Coin Bureau.

What is this Ethereum Staking?

Without getting too deep into the weeds on this one, as it is a hefty topic, I’ll provide a quick summary of what this Ethereum upgrade is about and why we need it. If you are already well versed in the world of Ethereum, feel free to skip this section or check out this article that provides a thorough deep dive into all things Ethereum 2.0 related or you can also find Guy’s opinion on Ethereum 2.0 staking here.

Photo of Ethereum Logo Image via thefutureisnow

For those who don’t know, Ethereum is currently undergoing a much-needed upgrade that will allow the network to evolve from a proof of work consensus mechanism to Ethereum 2.0 which will run on a proof of stake consensus mechanism. Why this has been a much anticipated and vitally important upgrade is that Ethereum basically powers the entire Defi space, sustaining entire virtual worlds such as Decentraland and the Sandbox, also providing the network backbone that most of our beloved NFTs and crypto domains are hosted on, not to mention that nearly half of the top 100 cryptocurrencies are all Ethereum ERC20 tokens.

Image Showing a Mere Fraction of the Entire Ethereum Ecosystem Image via Reddit

With all of this activity on a rapidly growing Ethereum network, it has been known since Ethereum’s inception back in 2015 that the network would need to upgrade to proof of stake eventually if they wanted to keep up with the growing demand of the scaling Ethereum ecosystem. What this has to do with staking, is that those who stake their Ethereum are contributing to the Ethereum network itself, becoming validators of the network and contributing to the security of the blockchain, processing transactions and storing information by adding blocks to the new consensus model for Ethereum 2.0. As a reward for their participation and support, those validators or stakers receive interest on their staked coins.

The Ethereum Staking APY Returns Chart Showing Diminishing Returns as more ETH is Staked Image via extropy.io

How Much can you Earn Staking Ethereum?

The APY earned on staking Ethereum fluctuates depending on the number of participants and the amount of ETH that is being staked, not to mention it will also vary depending on the staking platform and method used. The rewards received are dynamically calculated based on the state of the network upon epoch completion. Network-level reward rates are a function of the total amount of ETH staked and average percentage of uptime for validators. This is shown in the image above, highlighting that the total APY for staked Ethereum is set to a fixed rate, with early stakers getting in with a nice 21% return, with that rate diminishing as more stakers come onto the scene as the APY technically remains fixed, but needs to be allocated equally among validators so the amount of ETH rewards received will diminish over time, resulting in a variable APY per individual validator.

Pretty sweet staking rewards. Image via StakingRewards.com

Current Ethereum staking rewards range between 4-20% on exchanges such as Binance, Coinbase and Kraken, as they advertise at the time of writing, though it is important to note that the higher interest rates went to the newcomers, with interest rates now being on the lower end of that scale. The APY for those wanting to run their own validators or utilize staking pools can expect between a 4-10% APY.

What are the Risks Involved?

Staking Ethereum isn’t all sunshine and rainbows, unfortunately, similar to any investment vehicle offering returns, there are always risks involved and Ethereum staking is no different. There is a small risk of losing funds through the slashing of Ethereum that users have staked if things go horribly wrong with the upgrade which is unlikely, but still a possibility to be aware of. Those choosing to become their own validators can also lose funds by being offline more than 50% of the time and not performing their staking duties correctly, having a mild penalty of not receiving the rewards that they were expecting. Validators can also lose their funds by publishing contradictory information about the chain, in which case the validator is slashed and ejected from the system. The amount slashed will be between 1 ETH and the entire staked amount, harsh but fair as this normally only happens in cases where a validator is acting maliciously.

Ethereum Co-Founder and Lead Developer Commits $1.5 Million for Staking on Ethereum 2.0 Image via criptomercato.it

The other major risk is market risk and applies to the fact that staked Ethereum is locked until the upgrade is complete, meaning that your Ethereum is not accessible to be able to sell. Ethereum staking is not suitable for short term traders or holders and should only be utilized for people who want to stake their Ethereum long-term. An example of market risk would be if Ethereum skyrocketed to 10k tomorrow, then plummeted back down to five hundred dollars. Staked Ethereum is not available to be sold for profits at 10k, nor would users be able to get out of the asset and jump a sinking ship should the value of Ethereum continue to drop. Ethereum stakers are at the complete mercy of the market, and many are hesitant to stake their Ethereum as the profit that can be made by selling Ethereum during a bull market will likely be worth more than the APY you can earn by staking it.

2021 Ethereum Returns Showing That Ethereum Gains are Higher Than Staking Returns Image viaFortune.com

How/Where can you stake Ethereum?

This can be a bit of a loaded question with no “one size fits all” answer. There are multiple different methods you can use to stake Ethereum, and different places you can go for staking. Not all staking methods are created equal, here I will cover the different ways you can stake, and the most popular places to stake, beginning with the most difficult to set up and most costly in terms of initial setup and amount of ETH needed.

Become your own Validator

Yes, for the most die-hard and “OG’s” in the Ethereum space, setting up your own validator node is the most decentralized and effective method for staking your Ethereum, but it isn’t going to come cheap or easy, and you definitely do not want to choose this method if you are not technically savvy, don’t hold 32 ETH, or won’t have access to continuous internet uptime.

Ethereum 2.0 Validator Machine Image via medium.com/coinmonks

People who choose this option generally do so because they want to directly support the Ethereum network and contribute to the security and functionality of Ethereum, ensuring the future success and prosperity of the Ethereum ecosystem.  To become a validator and set up a node for ETH 2.0 staking, all you need to have is a cool 32 ETH kicking around, which is only $115,000 dollars at the time of writing. Easy enough, right? Let me just smash open the old piggy bank and collect the coins buried in my couch cushions and I’ll get that 115k in two shakes of a lamb’s tail. Say you do have a lovely bag of 32 Eth sitting around, you will also need some hardware to become a validator, which in this case, will need to be a dedicated computer set up for staking, with software installed that will allow you to run a terminal command that will pull the Ethereum 2.0 node onto that machine. If this is the path that you would like to take, I have provided a link to a full detailed guide into running your own validator node that can be found here

Computer Screen Showing What Running an Ethereum Validator Node Looks Like Image via voskcointalk.com

What about the options for those of us who aren’t tech-savvy, don’t want the hassle of running our own nodes, or don’t have a money tree kicking around to be able to buy the 32 ETH needed for staking? Well, luckily there are plenty of alternatives, starting with the simplest solution which is staking with a centralized platform.

Centralized Staking on an Exchange

The quickest and easiest way to start staking Ethereum is on centralized exchanges. Binance, Kraken, and Coinbase all offer Ethereum staking, with no minimum amount of Ethereum required to get started, assuming you are trying to stake at least more than 0.0001 ETH that is. All you need is an account with one of these exchanges which many people already have, hold some Ethereum in that account and choose the staking option. Note that liquid Ethereum staking is not available in every jurisdiction, so you will need to check with your exchange of choice to find out if you are located in one of the supported regions. Note that once Ethereum 2.0 staking is initiated on any of these exchanges, it cannot be unstaked until the completion of phase one of the Ethereum 2.0 upgrade is complete. Staking on these exchanges does have some differences depending on the exchange.

Over $21 Billion Worth of Ethereum is Being Staked in ETH 2.0 Signalling User Confidence in the Successful Rollout in the ETH 2.0 Upgrade Image via thecoin

At the time of writing, Coinbase does not offer liquid staking, that is to say, that they do not provide users with an Ethereum pegged ERC20 token at a 1:1 value to the Ethereum that users stake as Binance and Kraken both do, leaving your Ethereum locked and your capital no longer liquid for use. Coinbase locks both your Ethereum and staking rewards as well, leaving them unable to access, but these rewards can be seen under the “lifetime rewards” section for users to view. Coinbase does plan to enable liquidity of staked ETH funds later this year according to their FAQ section, though there is no ETA on that yet. A detailed guide to ETH staking on Coinbase can be found here.

Ethereum Rewards Page in Coinbase Where Users can View Their ETH 2.0 Staking Rewards Image via Coinbase

Binance on the other hand works quite differently. Users who choose to stake Ethereum on Binance will receive a tokenized asset known as Beacon Ethereum or “BETH,” in return at a value of 1:1 that represents the value of the user’s staked Ethereum. Users can swap their BETH back to ETH once the first phase of the Ethereum 2.0 upgrade is completed. When the time comes, for the BETH to be converted back to ETH, users will receive the equivalent amount of ETH to the amount of BETH they are holding at the time they convert the funds. Many users prefer this method as the BETH tokens are liquid, so while the ETH is locked away being staked, users are free to transact with their BETH as they would with regular ETH, swapping for other assets, or participating in BETH yield farming to further increase their rewards when they go to convert BETH back to ETH. A guide on Binance ETH 2.0 staking can be found here.

The Ethereum Staking Process Shown in Binance When Users go to Stake Their Eth Image via Binance

Similar to Binance, Kraken also offers liquid Ethereum Staking to users with a low minimum balance to get started of just 0.00001 ETH.  Kraken provides a similar method of staking to users where users who stake their Ethereum will receive a pegged token representing the value of the Eth they staked at a 1:1 ratio. This token is called ETH2.S and can be used as users would use regular ERC20 tokens. As with all the centralized exchange methods, the staked Ethereum is locked and inaccessible until phase one of the Ethereum 2.0 update is complete. Note that while staking Ethereum is available on Kraken for users located in American and Canadian, liquid staking and the distribution of ETH2.S is not available, be sure to double-check supported regions before getting involved. More on ETH 2.0 staking on Kraken here.

Kraken’s ETH Staking Screen Providing a Warning and Explanation about Ethereum 2.0 Staking Image via Kraken

Staking Pools

The next way that users can get involved staking Ethereum if they have under 32 ETH is by joining and getting involved with staking pools. There are multiple staking pools to choose from, too many to cover here, but I’ll mention a couple of top choices for you to consider. Staking pools are protocols that can contribute to validator nodes, collecting Ethereum from multiple participants until the 32 ETH are needed to begin staking. A great thing about Staking pools and why the majority of users prefer this method is that they can hold their ETH safely off of centralized exchanges and still participate in staking. The most popular staking solution in this category is Lido.

Lido

Lido is a fantastic option as users can stake the Ethereum that they hold in their own non-custodial wallet such as Metamask, Coinbase Wallet, Trust Wallet and even Ledger, which is a real game-changer. Be sure to check out our **review** on why we think Ledger is one of the best options for storing, and even staking crypto.

Similar to Binance and Kraken, Lido offers liquid staking which is a great, decentralized way to participate in Ethereum staking without locking up your capital. While your Ethereum will still be locked, users will receive stETH at a 1:1 value of the amount of ETH they staked, plus rewards. stETH tokens are minted upon deposit and burned when redeemed back for Ethereum after the completion of the first phase of the ETH 2.0 upgrade. The stETH tokens can be used as one would use regular ERC20 tokens available to swap or sell. Lido’s Ethereum 2.0 staking feature also comes supported and preinstalled in the mobile wallet Argent, for ultimate convenience. You can find a full tutorial on how to use Lido with a software wallet here and how to use Lido with Ledger hardware wallet here.

Ethereum 2.0 Staking Supported Natively in Argent Wallet Through Lido Image via Argent

ANKR

ANKR is another fantastic platform offering many different DeFi services including node hosting for over 50 different blockchains and provide a really easy way to get involved with Ethereum 2.0 staking pools. ANKR offers ETH 2.0 staking through their decentralized staking protocol Stkr, which is a smart contract allowing users to get involved in ETH staking with less than 32 Ether, but a minimum of 0.5 ETH is needed. The STKR system has two staking options available for users to choose from, they can simply be a requester, or staker, where someone else runs the node for you, sharing the profits, or users can also choose to be a node provider even if they do not hold 32 ETH, earning higher rewards by combining their ETH with users who are only contributing ETH to make up the 32 needed.

ANKR is also the only mention on the list where users can redeem their Ethereum before phase one of the upgrade is complete. This is done by allowing a user who is running a node to transfer ownership to someone else who wants to run a node, swapping the new users 32 unstaked Ether to the person passing on the node holding the 32 ETH to the new participant, so they essentially swap places. ANKR provides liquid staking similar to Lido and works with Metamask, Trust Wallet, Bitkeep, Math Wallet, imTOKEN, Huobi Wallet and others. Users who choose to stake ETH will receive aETH token in return at a 1:1 peg to the value of their deposited Ethereum which can then be traded on exchanges such as SushiSwap and Uniswap freeing up liquidity for Ethereum 2.0 stakers. A full tutorial for how to get involved with staking Ethereum with Ankr can be found here.

Ankr’s Stkr screen Showing the Different Staking Methods Available for ETH 2.0 Image via reddit.com/r/Ankrofficial

Validators as a Service (VaaS)

The final option I would like to cover is for those Ethereum holders that maybe do hold the 32 ETH required to run their own node, but maybe they lack the technical knowledge, equipment, or simply do not have the time or desire to run their own node. This is where a Validator as a Service company can come into play. There are service companies out there that are happy to run a validator node on your behalf for a flat fee, monthly fee, or percentage of your profits.

List of a few Validator as a Service Company who Offer Hosted Ethereum Validator Services Image via cryptomode

People who choose this method will pay the service company to maintain and run the validator node on their behalf, leaving the ETH holder no need to invest in the hardware, nor have the know-how on how to set up, maintain, or run their own node. The drawbacks being that the funds are obviously still locked up, and users are opening themselves up to third-party risk as they need to trust the company running the node, and hope they won’t go bankrupt or disappear overnight. It is also worth mentioning that some of these services charge quite a high premium for this service, and the costs fluctuate greatly between providers so be sure to shop around for the best deal and ensure the service provider is reputable. Two highly rated, reputable, and reasonably priced VaaS companies to consider are Staked and Stakefish.

Closing Thoughts

Those are the most common methods that can be utilized by Ethereum holders who want to stake their funds. As I mentioned, the process of staking Ethereum is not something that should be done by short term holders or traders as the loss of access to Ethereum for an unknown period of time as we wait for the first phase of the upgrade to be completed is a barrier to entry, preventing many people from staking their Ethereum. Staking Ethereum is mainly utilized by long term Ethereum holders, and true supporters of the network who participate in Ethereum staking as they want to see the future of DeFi flourish and are passionate about the Ethereum ecosystem.

You will notice that platforms such as Celsius and BlockFi were not mentioned here as those platforms offer lending services, which is different to staking, but if you are interested in earning interest on your Ethereum holdings without staking, then lending platforms such as Celsius and BlockFi may be more suitable for you as your Ethereum remains liquid and can be accessed and sold without having to wait for the Ethereum Upgrade. You can find more information on lending platforms here.

The post How and Where to Stake Ethereum appeared first on Coin Bureau.

Same goes with cryptocurrencies. Working on building the perfect portfolio is something I love to do and watching it grow makes me feel an incredible thrill. However, being young, the portfolio maybe doesn’t grow as fast as I would like and finding additional funding can be tough. Therefore, using existing methods of gaining free cryptocurrency makes a perfect way to grow the portfolio. Yes, making millions with free methods is highly unlikely, but every little Satoshi is always good, and as you’ll see some of these methods can truly offer substantial amounts.

Brave 

To start this off I just must mention Brave. Brave is a web browser that can be downloaded on your computer and although you won’t make mountains of money it’s definitely worth being mentioned.  Brave was founded by Brendan Eich, also the founder of the popular coding language JavaScript and the browser Mozilla Firefox . On top of that it has over 36 million users, so credibility shouldn’t be an issue. What makes Brave different from traditional browsers is its view on advertising and security.

Here’s a look at Brave’s homepage. The numbers used here are also quite accurate. Image via Brave.

How you’ll make money on Brave is based on your attention. Brave will show you ads based on your preferences of how many you want to see per hour. Then since you’ll be giving your attention by clicking the ad, it’s only fair that you are compensated for it. This will be in form of Basic Attention Token (BAT) which is the native token on Brave. The amount you’ll make per ad will only be worth a few cents. However, using Brave truly falls in the category of free crypto since just be using the browser you will make money. Furthermore, the point on Brave isn’t to keep that money but rather to tip it to websites and content creators you like. So, if you’re a content creator, or have a website, you can verify yourself and let people tip you.

Then, in addition to the new way of advertising that benefits both advertisers and consumers, Brave offers a few additional excellent features. First, it blocks advertisers and trackers from following you. Traditionally many sites follow your movements and clicks even after you’ve exited their site, Brave blocks this. Then, partly due to their tracker blocking Brave is a lot faster than traditional web browsers. And lastly, Brave is lighter for your computer which results in saving both battery and computer capacity.  

Bitcoin Faucets 

These are sites that reward you for doing different tasks. This can be anything from answering basic survey questions to playing and testing some game. The amount you earn from these tasks is only a few satoshi typically, and frankly I believe that your time could be better spent. However, I don’t want to stop anyone from trying this since back in the day these could pay up to 1 BTC per task and while it wasn’t much at the time, we all know what has happened to the price more recently.

Here’s a look at what Cointiply is all about. Image via Cointiply.

There are many Bitcoin faucets out there and it’s good to be careful since scams can also be found. A trusted one is Cointiply, they have paid over $3 million in rewards and they have many tasks available. How Cointiply works is that you’ll receive points from doing tasks with which you can then redeem Bitcoin. A terrific way to boost your earnings on Cointiply is by simply logging in to your account daily since you get a loyalty boost and earn more points for every task you do. Also, note that the tasks vary in both points and length so if you really want to be successful here you need to see which ones are worth your while. And lastly as a warning, don’t give too much personal information in surveys since I’m not sure how carefully Cointiply checks the businesses using their service.  

Airdrops & Bounties 

Next up we have the potentially most lucrative way to earn free cryptocurrency. An airdrop in cryptocurrencies means that the company behind a certain project deposits cryptocurrencies into the holders’ wallets if they meet certain requirements. The requirements can range anywhere from simply having specific cryptos in a wallet to having to do certain tasks like promoting the project, doing tasks can also be a bounty.

Why companies do this is mostly due to marketing reasons and adoption. Often times you’re required to use the project in order to take part in an airdrop, this stimulates trading activity which benefits the underlying project. Another potential reason for an airdrop can be to increase the supply of coins or tokens.

Catch the free cryptos and enjoy.

When it comes to potential earnings for participating in airdrops, I think you’re going to be amazed. For example, last year Uniswap rewarded anyone who had used their service a whopping 400 UNI tokens. At today’s market prices of roughly $25 (4/10/2021) that 400 UNI would be worth $10 000. Unbelievable, I know, and that’s not the only major airdrop. Last week Axie Infinity announced that they’d do an airdrop to people that had transacted with the service before October 26th of 2020. The amount you received depended on your level of activity. @sorareuk on twitter reported that he’d received 68 $AXS worth roughly $5000. And while that’s a lot it’s not as much as what @axie44 on twitter reportedly received. He received 4905 $AXS worth over 700 000 US dollars. You can read more about this on Cointelegraph.  

Now after reading about those rewards, I’m sure you’re wondering how you too can find these amazing opportunities. Well, one thing pointed out by Guy in a Coin Bureau video on this same topic is that many airdrops are for DeFi projects. Hence, it can be a good idea to keep your eye open for any promising projects, even those without a native coin since many can launch their coin by airdropping it to early users. There are also two good websites for you to check on any upcoming airdrops. One is Airdrops.io which not only shows you what airdrops are coming but also what you need and how you can participate in it. Another useful site to check if Airdrops.io missed any big airdrops is CoinMarketCap, there you can find a similar list on upcoming airdrops. So if you’re interested, I suggest you keep an eye on those two sites.

Here’s a look at Airdrops.io, so you never miss an airdrop. Image via Airdrops.io.

Lastly, a bit more about bounties. While bounties are quite similar to airdrops, they usually take the form of more social and marketing tasks. These can be anywhere from joining and referring their Telegram group to making a YouTube video about a project. Bounties are also much rarer so you need to be alert. One good site to check on any upcoming bounties is on Bounty0x.io. However, if you’re looking for big bucks it’s airdrops you need to focus on. And also, while the airdrops you receive might not be worth much at today’s prices it can be worth a lot more in the future. That’s what happened with the UNI tokens too.

Coinbase Earn 

Those of you who use or have used Coinbase should know what I’m talking about. Coinbase Earn essentially rewards you for learning about different cryptos. This is possible because crypto projects prepare a few videos about their blockchain and token and then give that and a certain amount of their crypto for Coinbase to distribute. Why they do this is for advertising reasons. It’s an effective way for a project to gain publicity and viewers since the Coinbase Earn feature is extremely popular.

An example of what it might look like, as you can see I’m on the waitlist since they’re out of funds. Image via Coinbase.

When it comes to your earnings, they will usually be equivalent of a few US dollars per project. However, as with earning any cryptocurrency, those insignificant amounts can easily turn into much larger sums if that crypto gains traction. Furthermore, doing one of these earn programs only takes a maybe ten minutes and therefore a compensation of a few dollars is more than fair. And on top of the dollar amount you’ll gain knowledge of new projects and even better than money is knowledge. Knowledge is something you can then yourself monetize.  

Lastly about Coinbase Earn, there is one piece of criticism I have to give. That is that the funds Coinbase has easily run out. I have repeatedly entered Coinbase Earn just to find that every program has already distributed its funds which leaves me without anything. Therefore, be alert for any new projects so you can secure your earnings.  

 Publish0x 

As said earlier monetizing your knowledge is a wonderful opportunity. If you know and are passionate about something then sharing it with people should be fun for you and potentially even rewarding. Publish0x is a blogging platform that offers you a few different ways to earn cryptos without having to supply any of your own cryptos. Publish0x uses two different cryptos, Ampleforth and Ifarm.

The first method to earn is by monetizing your own knowledge. You can write articles and blog posts which others then can read and select if they want to tip you. Unfortunately, though, the platform is currently in beta mode so you’ll have to submit an application to become a writer. However, in my understanding if your content is legit and somewhat good then you should be fine.

A look at Publish0x. As you see the amounts earned are quite small, however, there are those articles which have made over $50. Image via Publish0x.

The second way to earn is by reading. Yes, you can earn also earn crypto from reading. How this works is that when you read an article, Publish0x will provide you with the tipping amount. Then you can select how much of that you want to keep and how much you want to tip to the author. The third way to earn is by sharing articles. When sharing articles, you’ll receive 5% off the tip that the reader is giving. In the future there’ll also be competitions and leaderboards for those who share articles and by competing you can earn additional rewards.  

Publsih0x is only in early stages of development and reading about it made it clear that there’s a lot more to come. Therefore, being an early adopter might give you some additional benefits in the future.  

Blockchain Games 

Something many people don’t know is how gigantic the gaming industry has become. Trying to explain to my dad that the gaming industry is larger than both the music and the movie industries combined just doesn’t seem to work. I believe this is common for many people, especially older people, just try telling them that people make a living playing video games and they’ll laugh you out of the room. However, I know, and you know, that gaming can truly be both fun and a lucrative side hustle, especially now that blockchain gaming has arrived.

Have you tried perhaps the most popular blockchain game Axie Infinty? Image via Axie Infinity.

Many of these blockchain games combine innovations in the blockchain industry like NFTs to create a rewarding and entertaining experience. The games tend to have their own crypto ecosystems around them which makes them work. Then as the ecosystems grow and adoption picks up it reflects in the price of the cryptocurrency. This in turn makes playing more lucrative which further adds fuel to the growth. I’m not going to get into these games themselves since you can find an article on blockchain games with serious earning potential from Coin Bureau right here.

Great article, have a look. Image via Coin Bureau.

To incentivize you to read the article let me tell you about potential earnings. From the popular game Axie Infinity, there are people making between $500-1000 a month, some even more. In Philippines there are people who have replaced their day job with playing Axie. That’s quite the childhood dream. However, not all games provide you the opportunity to make as much as Axie Infinity, but the most important thing is to play something that’s fun. This is because of many reasons. First you’re often times better at something you think is fun and you’re more likely to spend time on improving at it. Secondly, if you think it’s fun there’s probably others too who like it but it maybe hasn’t gotten much publicity yet. This in turn might be good for you since once it gains traction your earnings can easily take off too since you’re already good, and maybe you even get an airdrop like the one Axie Infinity did. Thirdly, it’s not just about the money. Gaming is supposed to be fun and for the majority it won’t be the main source of income but rather something to enjoy on your free time. But seriously, if you’re interested in blockchain games then read the article I linked to.  

Crypto Cards 

Naturally, using a credit card isn’t free since you have to use money. However, using money to buy necessities is something everyone must do. Therefore, if you spend money on things you normally do and get a percentage back every time you do that then that’s free. Crypto credit cards basically work the same way as normal credit cards, but instead of receiving points you’ll receive some crypto.  

As an example, Crypto.com has a well-known credit card in partnership with Visa. They have many tiers and the further up you go the better the rewards. Using their lowest tier card doesn’t require anything from you and you’ll receive 1% cashback paid in Crypto.Com’s native crypto CRO. The next tier requires you to purchase CRO with $400 and hold it for 180 days. From this card you’ll earn 2% cashback and 100% reimbursement on Spotify. And yes, after the 180 days you’re allowed to do whatever, you want with the CRO you staked. When you move to higher tiers the amount you have to purchase increases and the benefits get better. I’ll leave a picture where you can see the rest:

Great benefits and awesome looking card. Images via Crypto.com.

What makes Crypto.Com’s cards great is that you can preload it with any currency. For example, if you want to use a fiat currency like Euros instead of cryptos you can deposit Euros to your card and use those. Then when using the card for things you normally use a card for, you’ll start seeing your CRO balance grow. What you then can do is convert that to BTC, or any other crypto you like, or back to fiat. Alternatively, you could also keep them in CRO if you see great potential in that.  

Lastly, I also want to remind you that the card offered by Crypto.com isn’t the only one. Other exchanges offer crypto cards, for example, Binance. There are also other companies and banks that offer crypto cards, and if you’re interested in which banks those might be then I suggest you read the Coin Bureau article on top crypto friendly banks.  

Staking & Earn

Although this isn’t technically free it does take advantage of the possibilities of utilizing your already existing assets. I believe that many reading this article own, or are at least planning on owning cryptocurrencies, therefore if you already own them, it is free to make them work for you.

Just as a quick reminder, staking is basically committing your cryptos to support the blockchain and verify transactions, in return for this you’ll receive a reward from transaction fees or from the projects reserves for stakers. Staking is something that can feel a bit complicated and isn’t even available for all of the cryptos out there since staking is only one of the many consensus mechanisms, which is why there are also other ways to earn with your assets. As an alternative you could try earn features on different exchanges. Basically, you lend your cryptos to the exchange or directly to other people, and they will pay you interest for that. This you can do on many exchanges and for example Kucoin has a great lend platform that earns you interest of up to 3% on Bitcoin and 20% on stablecoins. If you want to try this then I suggest you take advantage of the exclusive offer Coin Bureau has for Kucoin using this link.

Here’s a look at Kucoin’s lending platform. Image via Kucoin.

However, other exchanges offer this service so if you prefer some other platform then that’s fine too. There are also decentralized options like Aave for those who prefer privacy. Just be sure that when using any of these services you check that everything in both the platform and the contract you get into is fine. You don’t want to lock up your funds for an amount of time you’re truly not comfortable with. You’ll also find a ton of useful information from the Coin Bureau YouTube channel about lending platforms, staking and passive income on your cryptos. So, make sure to visit the channel if you need further information.  

Mining

I’m aware that mining technically isn’t free since both electricity and the equipment costs. However, if you already own a PC with a powerful graphic processing unit (GPU), which many do, then using that to start mining is technically free. It’s as free as any of the other methods since also they require things like internet, electricity, and the device itself to work.

Sit back, relax, and let your computer do the work.

Therefore, if you have a PC then turning it on to mine when you’re not using it can be a good idea for passive income. For example, using the software provider Nicehash you can make a profit of anywhere between $2-15 a day depending on your GPU. It’s easy to set up and you’ll be consistently paid in Bitcoin. I won’t be telling more about this since if you’re interested in maybe trying this then I suggest you read the Coin Bureau article on NiceHash and mining, there the whole mining process is explained.

Nothing’s Truly Free 

While some of these things I mentioned here might sound like free to your ears, they’re actually not. Many of these at least require time which without a doubt is our most valuable asset. I do agree that trying out different services to maybe participate in an airdrop is worth the while since you’re learning by doing. However, answering surveys maybe isn’t the most productive way to spend your time. If you do it just to pass some time then yes, I think it’s worth it. But when you start taking time away from valuable things like education then it’s not worth it in the long run. And to clarify, with education I don’t necessarily mean school but rather what you want to learn on the side, like learning about cryptocurrencies for example. Using Coinbase Earn to learn (get it?), or even just watch a high quality and educational Coin Bureau YouTube video is much more valuable than the pennies you’re going to make elsewhere.

Conclusion 

As with all reviews and guides, what’s found here isn’t everything. There are also other ways that can be equally classified as free cryptocurrencies, like getting your paychecks in crypto instead of fiat. Therefore, it’s worth checking other sources too if you want to truly dive down the rabbit hole. Also, for all my choices there are multiple companies that offer these same services and the once I’ve used are only examples. So, as always, I suggest you do your own research before getting into anything.  

Personally, I would dive further into those ways that you can earn free cryptos with little to no effort. For example, mining with existing equipment, earning yield on your cryptos, and earning free crypto cashback with credit cards are some things that I would classify as free, or at least as free as it can get. You can think of the free crypto you earn as your risk money. Maybe you decide to put everything you earn through cashbacks to a small cap altcoin in hopes of a 100x success. The free crypto you earn now might not be worth a lot but in 10 years if you decided to hodl those cryptos can show a whole other level of dollar value.  

The post Best Ways to EARN Free Crypto: Easy Money? appeared first on Coin Bureau.

What are Trading Bots? 

Simply put, trading bots are algorithms programmed to follow certain trading strategies. The simplest follow rules like “buy 1 bitcoin if the price hits $40,000”. The most complex search for different patterns and signals and then trade if all the criteria are met. To use these trading bots, you connect the trading bot to your exchange with something called an application program interface (API). This means that the program has access to make trades on your behalf depending on what the code says. This is a reason you must be careful with trading bots and only use trusted ones. You don’t want a trading bot to withdraw all your funds due to a malicious code hidden within the bot. However, you can put API restrictions like limiting it to only be able to buy or sell, and not withdraw. You can also limit by IP address, this means that you can set it so that only orders coming from your IP address are put through.

No, there’s not really a robot sitting behind a laptop. I know, I was disappointed too.

A common misinterpretation which I also fell for is that trading bots are only for short term trading. This is completely wrong since the strategies you can use with bots are completely up to you. A common use case for long term hodlers is a bot that automatically rebalances your portfolio. Trading bots can also be categorized based on the underlying strategies they use. There are three categories.

First, we have signal bots. These are created by so called experts and are based on their trading strategies and patterns. Another possibility is a signal bot created by a computer which has gone through mountains of data to distinguish different buy signals. The next feature of these bots is risk allocation, the trading bot analysis the risk and then decides how much to allocate to various positions. If you use signal bots you need to be careful since certain signals can basically be based on thin air, and it just happens that it has worked several times in the past.

The second category of trading bots is arbitrage bots. These are basically bots that take advantage of the difference in prices offered by different exchanges. If you didn’t know, the prices shown on Google or CoinMarketCap are only the average price of what is offered by different exchanges. The price difference from exchange to exchange opens the potential to make money by buying lower on one exchange and selling higher on another.

However, it isn’t as easy as it sounds. First of all, to find major differences you need to either look at low liquidity coins or low liquidity exchanges. Large cap cryptos tend to have about the same price on high quality exchanges which make it unprofitable to do this when trading fees and other fees for using a bot like this are accounted for. This results in people trying to take advantage of low liquidity exchanges which can offer vastly different prices. But, naturally using low liquidity exchanges has its own risks which is why many only lose money on this. Arbitrage bots might sound like money printing machines but just remember that they aren’t really, otherwise everyone would use them to get rich.

As you can see the price varies depending on both the exchange and trading pair. Image via CoinMarketCap.

The third category is programmable bots. These are simply trading on your behalf and you can program them to conduct trades based on a certain set of rules. It can either be simple rules like the Bitcoin example used earlier, or it can be based on multiple complex indicators. If you use these right, they can work just as you would do, with the difference being that they work 24/7. Another excellent feature with these, that many sites offer, is the possibility of back testing. Basically, it takes the strategy that you’ve created and applies it to historical price data. And while it’s said that past performance is no indication of future success, it’s still a safe way start.

Crypto Bot Pros and Cons 

We humans must sleep. This results in us missing what’s going on in the markets for about 8 hours a day. This is a significant amount of time for crypto markets, and many of us would like to capitalize on what’s going on while we’re asleep. Therefore, using these tools, which work like automated trading tools, is a brilliant way to keep us in the game while not physically being there.

For active traders bots can take a huge burden off their shoulders. Instead of having to stare at 10 different screens at the same time to find what you’re looking for, you can just have one laptop and let the bot do the searching. If you have the bot set to do exactly the same thing you would do then what’s the difference if you do it or if you let the bot do it, and believe me the bot will be even better than you would since we humans tend to do more errors. One of those primary errors being that we have emotions. Many times, we do irrational things, especially when struck by fear or greed. Bots, on the other hand, are cold hearted and only follow the instructions we gave them, which for this particular purpose is perfect.

We humans tend to act irrationally in extreme situations because emotions take over.

On the con side of this list there is quite a lot to talk about. To start with, signal bots are something that Guy commented on in the most recent Coin Bureau YouTube video on trading bots with these words “They scare the bejesus out of me”. This is because many tend to be scammy and simply don’t work. Just think about it, if these so-called experts truly found a strategy that works like a money printing machine, why would they have to sell it for a few hundred bucks? If you have a way to make unlimited money, I doubt if you need to sell it for insignificant amounts, not to mention how pure a heart you need to have to even think about revealing your unlimited money hack. Therefore, be careful when you see these bots being advertised as a guaranteed way to make money.

Can’t emphasize this enough, be aware of scams!

Then when you do use a trading bot there are a few additional points of concern. To be able to use these you need to keep money on an exchange, and those of you who follow Coin Bureau on YouTube know that Guy is not a fan of this. This is because exchanges can be hacked and if they do there’s no guarantee you get your money back. On top of that, you’re giving a coded algorithm access to your exchange accounts. And yes, as mentioned earlier you do have the opportunity to restrict certain features. However, I myself fear that these may not be enough if you happen to use the wrong bot.

Lastly, one thing that’s overestimated with trading bots is how passive they are. While they may sound like passive machines that you never need to check on, they’re not. To be profitable you’ll have to constantly tweak your strategy and actively follow what’s going on. It’s not enough to once set it and then forget it. Don’t get me wrong it’s not like you have to sit and stare at a screen 10 hours a day, but you have to be alert.

1. Kucoin

Kucoin is one of the top crypto exchanges out there. According to some studies ¼ of all crypto holders have an account on Kucoin. Being an excellent exchange, they offer a lot more features than just buying and selling, including trading bots. These bots include the following features; spot grid, DCA, futures grid, and smart rebalance. These features are extremely popular since on Kucoin there has been almost 3.4 million bots created, and the growth is not slowing down.

I bet many of you have heard about Kucoin, but here’s a look at it anyways. Image via Kucoin.

The reason I included Kucoin in this list is because if you’re already using the exchange and are interested in trying a simple bot to ease your work load then Kucoin is perfect for you. It’s extremely simple to set up and it shouldn’t take more than a couple of minutes if you already have funds available on the exchange. On top of that, it’s completely free to use these bots which is another reason this is perfect for beginners. You can also simply choose from existing trading bots and mimic those. However, be aware of falling for the trap of seeing a bot that made thousands of percent in one month. For those of you who do not use Kucoin, or want to learn more about it, I would recommend to head to the Coin Bureau YouTube channel and watch the video where Guy offers a guide on how to use Kucoin.

2. Shrimpy 

Shrimpy is a social trading platform that offers a variety of unique features like backtesting, automated trading, tracking, and much more. However, what Shrimpy doesn’t offer is signal driven trading or arbitrage. It’s more of a tool for long-term players who want to make it easier to manage their portfolios.

Here’s a look at Shrimpy’s website. It’s simple and has loads of information, so make sure to check it out before using Shrimpy. Image via Shrimpy.

This is done by the features automated trading and portfolio tracking. You can set up Shrimpy to automatically rebalance your portfolio along with dollar cost averaging into a certain crypto. This is something which many long-term investors do and in cryptos it can be quite time-consuming to rebalance your portfolio when altcoins can soar hundreds of percent in one week. The good thing with this tool is that it allows you to have most of you coins in cold storage. Instead of keeping all of your portfolio on the exchange you can keep smaller amounts since that will be enough to rebalance your portfolio. Shrimpy also supports over 30 different exchanges and wallets so you should find some which you’re comfortable using.

Another tool that Shrimpy offers which can work great for the lazy investor is copy trading. Shrimpy has a socials page where you can track both people and popular funds. You can even set it up so that you automatically copy the trades they do. This allows you to kick back and relax while others do the work. However, remember that the traders past performance you see on the socials page doesn’t mean they’ll make the same amount next month, so be careful, and I wouldn’t trust too much of your overall portfolio to a stranger’s hands.

This is what Shrimpy has to say about their Social Trading tool. Image via Shrimpy.

When it comes to pricing Shrimpy offers three different plans. For the majority I would recommend the starter plan, that will set you back $19 a month. This includes everything I mentioned earlier, and paying for the higher plan will be unnecessary for many. The professional plan is $79 and you won’t get much more compared to how much extra you’re paying. Basically, you’ll get the opportunity to link 10 exchange accounts instead of 5 and manage 5 portfolios instead of three. The last plan is an enterprise plan, naturally for business’ in need of a service like this. The cost for the enterprise plan is $299 a month.

3. Coinrule 

Coinrule has been in the game since 2017 and it was founded by a group of crypto and trading enthusiasts. Their team has impressive resume’s and there shouldn’t be any issues whether they know what they’re doing or not. The platform is suitable for those who trade according to well-known plans.

This is because Coinrule offers trading based on your selection from over 150 trading rules. This includes trend trading, where you’ll automatically sell coins in a down turn for coins that are trending higher. This has, according to their calculator made their fictional investor a whopping 200% gain in just 12 months. However, when compared to the profit of just buying and hodling Bitcoin for 12 months which is about 300% (on 28th of September) it sounds less impressive. This is not because Coinrule is bad it’s just rather because hodling tends to win over short-term trading. But if you’re interested in automated trading based on different rules then Coinrule might be something for you.

You can try Coinrule’s calculator to see how well their strategies work. Image via Coinrule.

Coinrule supports many reputable exchanges including Coinbase Pro, Binance , and Kraken. The pricing on Coinrule isn’t bad either. If you only want to try the service then lucky you, Coinrule offers a free plan for those who trade under $3,000. Then after that you’ll have to pay $29.99 until you break the $50k mark from where you’ll start paying double the amount. However, I would recommend you start with the free plan and see whether you can turn your trading strategy into a comfortable profit.

4. Cryptohopper 

I would argue that Cryptohopper is one of the most comprehensive platforms out there. First of all, they support almost all reputable exchanges excluding FTX. Secondly, from Cryptohopper you’ll find every bot you’ll ever need, including arbitrage. This makes it a perfect tool for more experienced traders too, since you will find valuable tools here.

Perhaps the most used feature on Cryptohopper is automated trading. With this you automate your trading based on 130+ indicators and candle stick patterns. Most of these are perfect for traders using technical analysis. You can also set up multiple indicators to be tracked at once to further improve your strategy. If for some reason you don’t have a strategy then no worries. In Cryptohopper there’s a marketplace where you’ll find top traders you can mimic. The good thing with Cryptohopper’s marketplace is that pro traders found there have all had to submit applications to be allowed on the marketplace, this makes it a lot safer to use. Also, to test out strategies Cryptohopper offers both back-testing and paper trading so make sure to give those a try before heading into the market.

A look at Cryptohopper and all its features. Image via Cryptohopper.

Other extremely popular features on Cryptohopper include the trailing features. This includes trailing stop-loss, trailing stop-buy, and trailing stop-short. The most used here is trailing stop-loss. When using this it will automatically change your stop-loss level so that it follows the upwards movement of the market. This means that only if a coin makes a drop of 10% of the most recent price will you sell your coin, rather than the traditional way of setting a certain price on where to sell. This makes it possible for you to ride the upwards trend without having to worry about being left without any profits if you don’t manage to sell at the right price.

The only negative, but understandable, thing about Cryptohopper is that you’ll have to pay to use all the features. However, there is a free plan available that doesn’t include automated trading, which I believe many of those who start using Cryptohopper will want and need. To access this, you will have to pay a minimum of $19 a month. Luckily though, there is a free 7-day trial that I recommend you to use before making up your mind. Then if you need shorter time frame TA or more open positions you’ll need to upgrade to either their Adventurer plan for $49 a month or their Hero plan for $99 a month.

5. 3Commas

Last up there is 3Commas which some of you might have read about in the Coin Bureau article about top crypto research tools. In the article 3commas was chosen because of their good platform for paper trading, which I strongly suggest for those wanting to try out their strategies. However, 3Commas offers much more than just paper trading which is why it’s included in this list too.

3Commas has largely all the same things Cryptohopper has including automated trading, trailing orders, a marketplace, and the already mentioned paper trading. Therefore, for many of you it might simply be more of a personal preference on which one you want to use. However, if you ask me, I would personally trust 3Commas a bit more. This has to do to do with a few things. First, 3Commas has received funding from Sam Bankman-Fried, the founder of FTX. Secondly, the volume on 3Commas is extremely impressive with $22.5 billion in monthly volume. Thirdly, their supported exchanges list is a bit longer than what Cryptohopper has. And finally, there is one especially useful strategy they have that is suitable for my own portfolio management.

The strategy I’m talking about is stepwise profit taking. This means that the bot will automatically sell a certain percent of the coins when certain prices are met. I like this because it allows me to take profits while still being in the market if the bull market continues. I would also argue that this is one of the best ways to exit a crypto since exiting all at once might leave you without those last hundreds of percent.

When it comes to paid plans 3Commas has a similar structure as Cryptohopper. There’s one free plan and three paid ones. However, the free plan on 3Commas does allow you to have one of each of their different bots, which gives you the perfect opportunity to try out the platform before paying. Then if you decide to purchase a paid plan, you’ll have to pay $14.5, $24.5, or $49.5. I again would recommend to start from the cheapest one and then decide what you truly need. Luckily, 3Commas also has a 3 day free trial for their most expensive plan, the pro plan, so make sure to use that too.

Take a look at what you’ll be paying for. Image via 3Commas.

Furthermore, another reason I didn’t mention earlier which makes me trust 3Commas more is that Guy from Coin Bureau has also used 3Commas. In fact, it’s the only trading bot platform he has used. At least according to his own words in Coin Bureau’s YouTube video on trading bots that was already mentioned.

Conclusion 

Hopefully, you know understand both the benefits and the risks of using trading bots. As with everything in life you need to address the risk/reward ratio. Using scammy bots from unreputable people doesn’t have a risk/reward ratio you want to be playing around with. On the other hand, using an automated DCA bot or a bot that trades based on the same strategies you use when normally trading isn’t necessarily a bad idea, if you use reputable sites.

Furthermore, about the sites, these are just my suggestions. There are many other sites available and for the most advanced out there you can even program your own bots if you know how to code. The sites I listed here are simply reputable and have good and user-friendly interfaces which makes them suitable for beginners. And lastly, all these sites do offer much more than what I’ve listed here. So, before using any of these I recommend you head on to their websites to do some further research whether the site truly offers what you’re looking for. After that it’s simply to set up your bot and have a goodnights sleep knowing you won’t miss any great market movements.

The post Crypto Trading Bots : Automated Money Machines? appeared first on Coin Bureau.

Obviously, as a Coin Bureau reader, there is no need for me to go into the details of the massively disruptive potential that Blockchain technology and cryptocurrencies in general have, and why many people feel that the decentralized finance movement could potentially be the greatest disruptive innovation of this century. And I am also sure that you are already quite aware of, and need no convincing about some of the incredible investment and generational wealth-building opportunities that only exist in the decentralized finance space, which is why you, as a savvy reader and early adopter of crypto, come to the Coin Bureau in the first place. Though sometimes, as with any new innovation or technology, the learning curve can be steep when you are looking to get involved and take advantage of some of these new innovations but worry not! That is why I am here today to help you out with a guide on everything you need to know on how to get involved with Compound Finance.

Compound Finance in a Nutshell

As this is a “How-to” DIY tutorial, the history behind what Compound Finance is, and how it works is outside the scope of this article. If you want to learn more about Compound Finance first and get a handle on the ins and outs, we have a handy article that covers just that, which can be found here. Or, if you prefer video format, Guy also did a review on Compound Finance which you can find here.

Compound Finance Welcome Screen Outlining the Total Value of Assets currently Earning Interest Image via Compound Finance

Many Crypto enthusiasts choose to simply squirrel away, stash, and hold their crypto in software or hardware wallets and walk away until the time comes to swap or sell. Not that there is anything wrong with doing that, these HODLers are still allowing themselves the benefit of long term, capital appreciation of these assets. Though many DeFi lovers out there have chosen to take that a step further and have decided that while they are holding onto these absolute crypto gems long-term, why not also lend them out to borrowers and earn interest? This is like adding rocket fuel to their investments as they are not only benefitting from the mouth-watering capital appreciation of their crypto-assets that we have all come to know and love, but they are also earning interest on top of that. Win-Win!

Before getting into the nuts and bolts of how to get involved, it is important to discuss and understand Compound Interest’s native governance token COMP, and its functions and purpose. Compound (COMP) is an Ethereum (ERC20) token that enables community governance of the Compound protocol. It is important to note that Compound Finance is a completely decentralized protocol, meaning there is no team, company, or group outside of the community of users that have control or say over how the protocol should be run. Unlike your bank who has the authority to lock you out of your accounts, dictate where you can, or cannot spend your money, or whether you can, or cannot borrow, Compound Finance is run by its community members, normal folks such as you and I who hold the Comp token which is accessible to anyone. Holders of Comp tokens give users the right to vote on new proposals brought forward by the community, so it is the users who have a vested interest in Compound Finance who get to govern how the protocol should be run. A true protocol by the people, for the people. As Compound Finance is truly decentralized, there is also no need for any form of KYC, nor ID verification needed to get started.

How to Lend and Earn APY

Interest Increasing

To get started, the first thing you are going to need to do is hold the amount of the token that you are going to want to lend out. Understandably, you cannot lend out what you don’t hold. For a full list of assets that are currently supported, and their APY’s you can check out the Compound Finance Markets page

Supported Assets and APY Shown, Image via Compound Finance Market Page

Once you have found the asset that you want to lend out, the first thing to do is acquire that asset using your favourite exchange, if you do not already have a “go-to” exchange, here is an video where we cover some of the top, and safest exchanges that we recommend.

Okay, now you’ve made your crypto purchase, Yahoo! Time to Giddy-up and get involved in the rootin-tootin world of DeFi right? Hold your horses there cowboys and cowgirls, first, we need a way to interact with the Compound Finance Protocol. If you have made your purchase on a centralized exchange, chances are that the exchange where you bought, and now hold your crypto, isn’t going to want to play nice with the decentralized world of crypto lending where the exchange isn’t making any money. So, it looks like your assets are going to have to hit the old dusty trail and ride off into the sunset away from the exchange and to the next watering hole to a decentralized wallet where DeFi can flourish.

What am I talking about? Well, to interact with the Compound Finance protocol you are going to have to link a decentralized Ethereum wallet, such as the Coinbase wallet, Ledger hardware wallet, or the most popular, and commonly used Metamask wallet.

If you don’t already have an Ethereum wallet, you can find tutorials here on how to set up Metamask , Coinbase wallet, how to use wallet connect or use Ledger with Compound Finance.

Once you have your Ethereum wallet setup, with the assets that you want to lend out and some Ethereum held in that wallet to cover the Ethereum gas fees that will be charged to use the Compound Finance protocol, the Compound Finance site will automatically prompt you to connect your wallet.

From there you will be taken to a user-friendly, and easy to interact with dashboard where you will easily be able to choose which assets you either want to lend on the left, or borrow on the right.

Compound Finance Lending and Borrowing Dashboard

Say you are holding some 0x and you want to lend it out, you would click on the asset and be met with a popup screen where you can choose to “supply” the asset which means lending it out.

Compound Finance 0x Supply Screen showing the APY, Price, Collateral Factor and 0x Amount Held in the User’s Wallet

You will need to select to “Enable” the asset if this is your first time lending that particular asset out. This will open a new tab that will take you to your wallet screen, as your wallet will need to wait for you to authorize Compound Finance to be able to interact with your Ethereum wallet balance, and for you to confirm the Ethereum gas fee.

Metamask Popup Asking for Authorization to Interact with Compound Finance

On this screen, you will be able to adjust or accept the gas fee that is required to perform this transaction. Once you hit confirm, your Ethereum wallet has now initiated the transaction needed to interact with the Compound Finance protocol. Now you will be taken to a broadcast screen where you will need to wait for the transaction to clear. The wait time is dependent on the congestion of the Ethereum network and the gas fee selected, but normal transactions should clear in around five minutes, sometimes longer if the network is experiencing high congestion or if too low of a gas fee was selected.

Transaction Broadcast screen shown as the Transaction is Pending

Now that the asset 0x has been enabled, and the transaction is cleared, you can now supply your 0x tokens. You will need to enter the amount that you want to supply, or hit “max” if you want to supply the whole balance baller style, then simply hit “supply”

Asset Amount Supply Screen

Hitting the supply button will once again prompt a popup for your Ethereum wallet where you will need to again confirm this transaction and choose or confirm the Ethereum gas fee that will be charged to perform this transaction.

Popup Redirect to Wallet Screen to Confirm Transaction and Edit or Select Ethereum Gas Fee

Well done! You have now supplied your first asset for lending and will start earning interest. Lenders earn Interest roughly every 15 seconds, about the time it takes for each newly Ethereum block to be mined. There is no minimum for lending or borrowing, this protocol can be used for as long as users like, with no penalty for withdrawing. Now that you have lent your first asset, you can return back to the dashboard where you can see the total balance that you have supplied and the net APY across the assets that you have lent out.

Compound Finance Dashboard Showing the Amount Supplied, or “Lent,” and the Net APY

You can simply click on the lent-out asset again and choose to “withdraw” from the lending pool at any time you like. When you lend your tokens, you will also be earning Compound (COMP) tokens, and your Comp balance can be found under the “vote tab”.

Vote Tab Where Users can find their Comp Token Balance and set up Voting

Comp tokens are distributed to lenders and borrowers proportionately depending on how much interest is being paid to each market. It is up to you what you want to do with these earned Comp tokens. They can be held long term for the potential of asset appreciation, this also allows for voting rights on proposals regarding the Compound Finance protocol, or you can sell them on a Dex such as Uniswap.

And that is it for lending, enjoy those sweet interest rates and good job in sticking with me so far. Now, let’s get into the other feature of Compound Finance and that is borrowing.

How to Borrow Funds

Are banks getting you down? Did you get denied financing for some arbitrary reason like you were only able to provide five and a half months of payslips instead of six? Maybe you forgot to pay that twenty dollar parking ticket ten years ago, or your ID has expired and now Mr Bank person is telling you that you don’t qualify for borrowing. Or maybe, you are one of the “fortunate” ones that the bank is happy to “help out” offering you a credit product for 19.99% interest, oh please….

Did I mention that Compound Finance allows users to borrow, open to anyone with no KYC, no credit checks, and most certainly, lower interest rates on average than most banks are willing to offer? Borrowing with Compound Finance is a great way to avoid having to sell your precious crypto moon-bags to cover those pesky expenses that can creep up. Or maybe you’re looking to borrow as the interest rates are low enough for you to justify treating yourself to something shiny, or you want to take yourself on that much deserved holiday. Perhaps you are a true DeFi degenerate and you want to ape “all in” into the next hottest crypto token that you don’t want to miss out on. For whatever the reason, Compound Finance offers a very convenient way to get started borrowing capital quickly and easily.

Lending APY and Borrowing Rates Shown on Compound Finance Markets Page

In order to get started with borrowing, you will still need to follow the steps outlined in the first part of the “How to Lend” section as you will still need an Ethereum wallet such as Metamask, connect that wallet to the Compound Finance app, and you will need to send some funds to that wallet to put up as collateral, as well as some Ethereum to cover the Ethereum network gas fees.

By being able to use your own crypto assets as collateral, that means you can still hold onto your crypto assets without having to liquidate them to get the cash needed for your expenses. Once you have your wallet connected to Compound Finance, and the funds sent to that wallet that you want to use for collateral, all you need to do is simply enable the collateral feature beside the associated asset.

Enabling Collateral Option From the Compound Finance Dashboard

Clicking the collateral slider to the “on” position will prompt a popup where you are shown a warning screen with a “learn more” button that explains that assets put up as collateral are subject to liquidation risk should the borrower not pay back the borrowed funds, and the user is asked to confirm if they want to use these funds as collateral.

Confirmation Popup Explaining Liquidation Risk and Asking the User for Confirmation

Clicking the “Use *Asset name* as collateral” button will again take you to your wallet screen where you are asked to select the gas fee and accept the transaction.

Once your asset is up for collateral, you can now navigate to the right-hand side of the dashboard and select the asset that you would like to borrow.

Selection of Assets Available to Borrow

Once you have decided which asset you would like to borrow, simply click on the asset and a popup will come up asking how much you would like to borrow, and give you the option for a recommended “safe max” amount.

Popup for the Selected Asset the User Wishes to Borrow

The “Borrow Balance” section on the bottom shows the risk associated with the amount you are borrowing based on the amount of collateral you have provided.

Conclusion

And there you have it, you have now borrowed crypto assets that you can simply hold if you feel the price of that asset is going to appreciate more than the amount of interest you will pay, trade that borrowed asset for another asset or send it to an exchange where you can liquidate it for fiat to withdraw into your bank account and cover some expenses.

Everything shown in this tutorial can be done within an hour if you are already set up with a decentralized wallet and exchange. If you are starting this whole process from the start, you will still likely be able to be a lending and borrowing wizard within a day. This sure beats all the red tape, restrictions, and painfully slow processing times traditionally offered by your bank, not to mention you can also earn better interest rates through Compound Finance than your bank is willing to offer, and you can borrow for a less painful repayment interest rate. When you do a side by side, pro and con comparison, it isn’t even a contest. Lending platforms such as Compound Finance win hands down over the traditional banking method, and this is part of the reason why we are seeing many banks and institutions either trying to lobby against Crypto, or looking to implement it themselves and adopt this disruptive technology because as the saying goes, “If you can’t beat them, join them,” and that is what many banks are looking to do now as they see the decades of their free ride on the gravy train coming to an end. Decentralized, peer to peer lending platforms brings us closer to the end of banks being able to take gross advantage of people by making billions of dollars off the backs of regular people like us.

The post How to use Compound Finance: Beginner’s Guide appeared first on Coin Bureau.

NiceHash was founded in 2014 and they market themselves as the leading platform in cryptocurrency mining as well as trading. That’s quite a large definition and to narrow it down a little bit, NiceHash is essentially a hash power broker. Being a hash power broker means that it connects those who want to sell their hash power with those who buy it. In practice, if you use NiceHash they will distribute your hashing power to the highest paying pool which in turn pays NiceHash a reward which will be distributed to you. Because it’s an open marketplace, it ensures that the price you’re getting is the best one out there.

The Retail Miners Dream? 

If you’re dreaming about starting a mining rig like the ones companies like Marathon and Riot have then NiceHash isn’t something you’re going to use. However, if you’re a gamer with a powerful PC sitting unused most of the time then NiceHash is for you. Depending on what graphics processing unit (GPU), and central processing unit (CPU) you have NiceHash can provide you with earnings up to $15 a day with only one GPU. And the best part of it all, you don’t have to do anything. Okay well, you must set it up which is why you have this guide. But before getting started I quickly want to address the supposedly high barrier of entry.

Do you have a powerful gaming PC just lying around most of the day not making you any money?

The user-friendly platform and the idea of exciting potential of profits might even provide you a reason to buy a PC or just a few GPUs to try it out. However, as we all know buying PCs with powerful GPUs isn’t cheap so you might think of it as too big of a risk. The good thing though if you buy the high-end GPUs is that they have an impressive resale value. Many claim that you’ll get at least ¾ of the initial price back on just the GPU, not to mention what an excellent quality PC could be worth. This is because research has proven that if a GPU is treated correctly, it won’t lose its power. NiceHash is great for this since they automatically configure your settings so that you get the most out of your GPU without harming it. Therefore, trying mining might not be as expensive as you think since you can always get most of your money back on the equipment.

Step 1: Equipment

The first thing you need to do is get yourself some equipment if you don’t already have some. If you’re not familiar with GPUs, then it might be incredibly difficult to know what is good and bad. Also, a GPU might be good in general while their suitability for mining not so good.

The best way to know what to use is to look at NiceHash’s profitability calculator. Here you can compare various hardware to know which one will deliver the best return on investment. In the calculator you also need to include the electricity cost and I strongly suggest you use the most exact rate. If you don’t know the price then you need to search for some average prices around your area and use the highest one you find. This is because it’s not nice to buy equipment just to realise that your electricity costs were higher than expected and you’re making no profit.

This is what you’ll see on the calculator. When picking hardware make sure to choose the right one. Image via NiceHash.

Another suggestion I would make is to not be too cheap when buying equipment. If you can afford to go for the newer ones then that might be a desirable choice. This is mainly because of the resale value but also because older ones just aren’t that good for mining. And then lastly, double check before buying. Check from other sources than NiceHash whether the GPU you’re buying is really good, and then check that all the details are the same on the one you’re buying, and the one you’ve researched.

Step 2: NiceHash Miner or QuickMiner 

After you’ve got your equipment ready it’s time to look at what we’re going to be using. NiceHash offers three different software options for mining, NiceHash Miner, QuickMiner, and OS. The reason we’re going to stick to talking about only NiceHash Miner and Quickminer is because those two are the ones the majority use. They both require the windows operating system opposed to OS which requires Linux.  

Now, deciding if you’re going to use NiceHash or QuickMiner basically depends on your GPU. If you’re using Nvidia then I would suggest QuickMiner but if you’re using something else you will have to go with NiceHash since QuickMiner only works with Nvidia. The big difference between these two systems is that QuickMiner uses mining algorithms developed in-house by NiceHash itself and NiceHash Miner uses 3rd party miners. The reason I therefore would use QuickMiner is that according to NiceHash, these 3rd party miners are often unverified and the lack of information surrounding them might make them untrustworthy. Always better to be safe rather than sorry.

Basic rule, if you use Nvidia then pick QuickMiner. Image via NiceHash.

However, if you use NiceHash Miner you can use a benchmark tool which will check all the 3rd party miners and see which one is the most efficient. What I found out when reading the reviews and comparing these two is that although NiceHash benchmarks all the 3rd party miners, QuickMiner is still just as good or even better. This is also partly because when using QuickMiner there are no developer fees to NiceHash, opposed to a 2-3% fee if you use NiceHash Miner.

With both systems you will be paid in Bitcoin. This is because you’re basically not mining but rather just selling your hash power. At least with QuickMiner you will be selling your hash power to Ethereum mining since it’s the most lucrative right now. However, NiceHash will pay your rewards in Bitcoin regardless of which crypto is mined. But no worries, you can always exchange that to Ethereum or some other altcoin on NiceHash’s exchange.  

Step 3: Getting started 

Now, after you’ve decided on both your equipment and your software it’s time to start mining. To do this you need to enter NiceHash and create an account. After this you’ll enter your NiceHash dashboard from where you’ll press the button “mining” from the top menu. Then from there press “Download miner or add ASIC”. Before downloading you need to disable windows defender by making NiceHash an exception. Windows defender is an anti-virus program, and it can interfere with NiceHash if not dealt with. You’ll find instructions to this from NiceHash on the download page.

From here you’ll find everything you need to successfully download QuickMiner. Image via NiceHash.

If you’re using QuickMiner you only need to download the basic package but if you use NiceHash Miner, then you’re going to need to choose which 3rd party mining algorithms you want to use. My suggestion would be to download them all and then let the NiceHash benchmark tool choose which one works best for you.

In the downloading process you’ll be asked about your mining address. This you will find when going to your mining rig, from the top menu press “mining”. Then in the top left corner you’ll see a square with the text mining address. Then just copy and paste the address. You’ll also be asked to name your rig, and you can name it whatever you like.

After you’ve downloaded everything that’s needed, you’re good to go. QuickMiner should automatically take you to your rig manager and it should show you your device there. It also automatically starts mining. With NiceHash Miner you have to manually press the play button from your controls. Now there’s just some small setting tweaks you can do to make mining more suitable for you. For example, many turn off CPU mining since it isn’t that lucrative and when mining with your CPU it makes it impossible to use your PC at the same time since it will be so laggy. Another thing to point out is that the settings with QuickMiner and NiceHash Miner are a bit different. QuickMiner for example has overclocking settings and auto restart which are good to keep turned on. QuickMiner also allows you to choose how much work you want your device to put in on mining. Then based on your choosing it will automatically adjust all the necessary GPU and mining settings. I’m not going to go too deep into these setting since many of them are written in plain English and it’s up to you to choose what you want and don’t.

However, the thing that can be more difficult is adjusting your GPU. I must admit that I’m no expert on these and I’m maybe not the best to speak about this which is why I won’t do that. If you use NiceHash Miner, you need to look at which settings on your GPU fit the best with these 3rd party algorithms. The best way to do these is just to search on Google or YouTube, there are loads of content for this. You need to search this based on which GPU you’re using, which is why I haven’t included any links here. For QuickMiner it should automatically adjust everything so that it works efficiently.  

Now that everything’s set up you just have to press the big play button for Nicehash Miner to start mining, QuickMiner should already be mining to start mining. Then if you want to use your PC for gaming or something else you simply turn mining off. Then after you don’t need the PC anymore you turn mining on and enjoy the passive income that you get.  

Step 4: Enjoy the Profits 

After you’ve been mining for a while, you will start seeing your balance grow. NiceHash will pay you every four hours and always in Bitcoin. What I would suggest for you to do is to regularly withdraw your funds to a wallet. However, if that’s not something you prefer you can always use NiceHash’s exchange to trade your BTC to, for example, Ethereum and then withdraw that to any wallet that supports Ethereum, but this will come with a fee.

Now you can proudly call yourself a miner. Enjoy the free BTC.

When it comes to your estimated earnings you should have a fairly good idea on what’s coming if you used the calculator. However, you need to remember that due to the volatility in crypto prices your earnings counted in a fiat currency will fluctuate. On top of that you’ll also need to keep your eyes on your electric costs since for many contracts they too tend to fluctuate and if they do that a lot then it can eat up your profits.

Lastly, in many countries earning a passive income like this is taxable, even if you aren’t earning a lot. Therefore, find out how taxation on mining income works in your country before starting. By doing this you’ll avoid some unpleasant conversations with the tax authorities. And of course, if that income is taxable in your country, remember to pay it in time.

Word of Warning 

When looking at a new platform it’s important to know all the facts, especially if we’re talking about a software that will be downloaded on your PC. One of the founders of NiceHash, Matjaž Škorjanc, is a convicted cybercriminal. He created a malware that infected PCs and scanned for information including passwords and bank details. This combined with the need to turn of anti-virus software when downloading NiceHash can make some a little skeptical. And to make it worse, NiceHash has been hacked once in 2017 and it resulted in $64 million getting stolen. However, those stolen funds were reimbursed, last of it two years after the hack.

Here’s a good article if you’re interested in diving in deeper. Image via Krebson Security.

So, how can you protect yourself? Well, for a starter, don’t leave your coins on NiceHash. Instead, as soon as you have a certain amount of earnings it would be wise to move your funds to a wallet. Two good options you can directly move your funds to from NiceHash are the Coinbase wallet or a cold storage choice like the Ledger hardware wallet. On top of securing your cryptos I would also not use the PC you’re mining with for things of high importance. This I would do just as a precaution, I believe that NiceHash is perfectly fine but just be sure it would be good to maybe access your bank account from another computer.

Conclusion 

As you’ve probably noticed by reading this article, starting a crypto mining project isn’t that hard. Especially for those of you who already have a powerful PC, it’s a no brainer to start mining rather than not doing anything with your PC 16 hours of the day. The profits are completely passive and considering how little you must do to set it up there’s no better alternative. Then if you feel like you’re not getting enough you can simply buy another GPU and double your earnings. 

For those of you who still feel skeptical about starting mining there’s not much more I can say. This opportunity to be a part of something great from quite the early stages should be enough to convince you to start. Just imagine what those Bitcoin you manage to mine now will be worth if, and when Bitcoin hits $500k like Cathy Wood predicts will happen by 2025. Those BTC fractions will be worth what some would even call life changing amounts, and with little to no effort and an initial investment of only about $2000. Therefore, if you by any means have the opportunity to try this then I suggest you do that.

The post Using NiceHash For Profits: Beginners Guide  appeared first on Coin Bureau.

In fact, ever since the inception of Bitcoin and its innovative blockchain infrastructure, the technological frameworks powering crypto assets have only but developed, optimised, and refined their use cases. From smart contract applications to cross-chain bridges, from on-chain gaming to sharding, and from DeFi to NFTs, blockchain-enabled economies have come to fundamentally restructure the way individuals conceptualise financial technology, art, entertainment and, ultimately, monetary value.

One particular segment in the world of cryptocurrency that has taken the markets by storm is the one revolving around NFTs, a new blockchain-induced economic, artistic and cultural movement spearheaded by the proposition of immutable on-chain ownership of assets.

NFTs Introduce Uniqueness, Scarcity And Non-Interchangeability To The Digital Asset Ecosystem.

The recent craze-driven sentiment surrounding NFTs is primarily linked to the ability of these non-fungible tokens to preserve authenticity, originality and value on-chain. Furthermore, non-fungible tokens are able to forward intricate value preservation infrastructures and have come to effectively redesign the concept of uniqueness and scarcity in the digital asset framework. For example, CryptoPunks are one expression of NFT art that are unique, incredibly scarce, and an embodiment of the earliest form of NFT culture.

Ethereum-Based CryptoPunks Is A Unique 10k Item Collection Of NFT Assets..

In addition, the ability to store valuables on-chain as non-fungible tokens is proving particularly beneficial for artists and collectors as it creates a new, permissionless, disintermediated environment for them to buy and sell their art pieces. The economic incentive that comes with holding and trading NFTs has led to the sustained development of NFT-centric marketplaces and exchanges, such as Opensea, FTX NFTs, and Binance NFT to name a few.

Opensea, A Peer-To-Peer Marketplace For Crypto Collectibles And Non-Fungible Tokens.

However, apart from Opensea, Rarible and Binance NFT, a wide array of NFT marketplaces have come onto the scene. One of these marketplaces is the one offered by ECOMI, a technology company based in Singapore that is leading the way in the emerging digital collectibles space.

ECOMI Aims To Lead The Way In The Wildly Successful NFT Space and Protection Of Digital Assets. Image via Ecomi.com

In this piece, we will be primarily focusing on the process of buying OMI tokens, ECOMI’s native assets, and will analyse some of the best exchanges offering them. Admittedly, there aren’t many exchanges offering the OMI token, thus it seems only constructive to provide a step-by-step guide on how to purchase OMI on both the centralised and decentralised exchanges available. Ultimately, if you’re still trying to wrap your head around what OMI is and how to buy it, we have you covered!

But before we progress onto how and where to buy OMI, let’s just briefly introduce the project, shall we?

About ECOMI

ECOMI offers a one-stop-shop for NFT collectibles through the VeVe App bringing pop culture and entertainment into the 21st century. The VeVe App allows users to experience true ownership of premium digital collectibles and authenticated NFTs (a-NFTs). Through the App’s marketplace, users can obtain common, rare, or one-of-a-kind digital collectibles, share these across the social network service and exchange them with the VeVe community, all from the palm of their hand.

ECOMI views NFTs as the next digital, financial and artistic frontier in not only the crypto space but actually in real-world applications as well. Furthermore, ECOMI seeks to conceptualise digital collectibles as a new asset class that offers intellectual property (IP) owners the opportunity to gain access to new revenue streams in the digital landscape, such as royalties for example. Digital streaming, gaming, and in-app purchasing have become a multi-billion dollar market, and the pop culture and NFT collectible industries are most likely poised to be next in line to join this flourishing digital trend.

The Demand For In-Game NFT Assets Is Only Increasing. Image via NonFungible.com

The ECOMI-powered VeVe NFT marketplace brings the world of collectibles into the digital realm and allows artists, creators and collectors to communicate, exchange, and buy and sell NFT artworks. VeVe users can collect limited edition 3D sculptures of their favourite heroes, characters and icons in premium digital format directly from their smartphones.

Users Can Download The VeVe App Create Their Accounts And Start Their NFT Collecting Journey. Image via VeVe Medium

As a marketplace, VeVe is the leading mobile-first digital collectibles platform with over 300,000 users and more than 500,000 digital collectibles sold since the App went live at the beginning of 2021, with the App being consistently ranked in the top entertainment applications in the world. In addition, VeVe offers users a new way to participate and interact with their favourite fandoms, with officially licensed, premium 2D and 3D digital models and artworks from some of the world’s biggest brands, including DC, Cartoon Network, General Motors, Givenchy, Warner Brothers, Universal Studios and more.

Since its inception, VeVe has been built to accommodate both crypto-native and mainstream audiences, and its ease of onboarding and low barrier to entry have contributed massively to the platform’s early and continued success. With the increasing adoption and progressive, societal understanding of digital assets and NFTs, ECOMI seeks to introduce its own native utility token OMI into the realm of NFT functionality, as well as incentivise its use in the purchase and sale of digital collectibles within its platform.

About OMI

OMI is a utility token that can be used to buy and sell digital collectible NFTs on the VeVe marketplace. OMI also underpins all financial transactions within the App, however, most of these have been hidden from the user for ease of use and onboarding. The OMI token ecosystem is complemented by an innovative buy-back and burn system based on the sale of NFTs on the VeVe platform, effectively making OMI deflationary and increasing its long-term levels of scarcity.

With future DeFi and staking opportunities, as well as a wide range of additional incentives designed to maximise token utility, OMI will continue offering a dynamic set of functionalities within the ECOMI ecosystem that will also continue to be integral to the App’s development and maximise value for token holders.

OMI Peaked At An All-Time-High Of $0.01338 Then Retraced More Than 70%. Image via CoinMarketCap

Currently, at the time of writing, OMI is trading at approximately $0.003 and has pulled back over 70% from its March 2021 highs. The token generation event took place in May 2019, with a total supply cap of 750 billion tokens. However, thanks to the tokenomic design of VeVe, almost 450 billion of these tokens will never enter circulation. In fact, to accommodate the range of transactions that take place on VeVe, OMI tokens were initially distributed in the following manner:

• VeVe Reserve Wallet: 300 Billion OMI. These tokens never enter circulation.
• VeVe Vault Wallet: 40 Billion OMI added for initial liquidity purposes. This wallet acts as a staging wallet between the in-App reserve and the Burn wallet. These tokens also never enter circulation.
• Business Development Fund: 150 Billion OMI.
• Team, Advisors, Board Members: 150 Billion OMI.
• Private Sale and Public Initial Exchange Offering (IEO): 110 Billion OMI.

Since the launch of the platform, 103 billion OMI tokens have been removed completely from the total token supply. In fact, 97 billion OMI were removed from the Business Development Fund and locked indefinitely in smart contracts by the team, and an additional 6 billion OMI have now been burnt from the purchase and sale of NFTs on the VeVe platform. Essentially, this means that of the 750 billion tokens originally minted, there are now less than 647 billion in the total supply, and less than half of that supply can ever enter active circulation.

Visual Of OMI’s Token Metrics And Initial Distribution Structure. Image via ECOMI Whitepaper

In the long run, ECOMI will continue deploying its buy-back and burn architecture to ensure a constant reduction of OMI tokens in circulation and, as these features are based on the sale of NFTs on its platform, it will look to deflate the circulating supply of tokens in perpetuity and regardless of market conditions.

Now, before we progress onto how and where to buy OMI, it is important to note that the OMI token is non-ERC-20 compatible per se, as it utilises the GO-20 standard based on the GoChain blockchain. This, in turn, means that OMI investors will need to connect to exchanges and utilise wallets that support GO-20 assets. However, because GO-20 tokens aren’t as popular nor as widely adopted as the Ethereum ERC-20 standard, VeVe has recently announced its partnership with Layer-2 scaling solution Immutable X that will  provide the infrastructure required for the NFT marketplace to scale from its current 300,000+ collector user base and perform seamless, secure and carbon-neutral NFT transactions.

The VeVe X Immutable X Partnership Will Allow For The Interoperability Of VeVe NFTs On The Ethereum Blockchain. Image via ECOMI Medium

Utilising StarkWare’s leading zero-knowledge-proof technologies, Immutable X is able to provide instantaneous, gas-free transactions while retaining the security of Ethereum, and will eventually allow VeVe to migrate fully from GoChain to the ETH ecosystem.

As previously mentioned, the amount of exchanges offering OMI isn’t too extensive, but the ones that do include:

• Gate.io
• Bitforex
• AscendEX (BitMax)
• OKEx
• Uniswap

Buying OMI On Gate.io

Gate.io is a popular digital asset exchange to trade altcoins and it has a large number of tradable crypto pairs.

Gate.io Is A Very Viable Exchange Offering A Variety Of Asset Pairs. Image via Gate.io

In order to buy OMI on Gate.io, investors should:

• Navigate to Gate.io.
• Click ‘Sign Up’ to create an account and get started.
• Depending on the policies of the exchange, users might be required to undergo a Know Your Customer (KYC) procedure in order for their account to be verified. It should be noted that the KYC process could take as little as 30 minutes or as long as multiple days.
• Once approved, users will need to either deposit USDT into their trading account on Gate.io or purchase Tether with a credit card.

Image via Gate.io

• Once funds have been deposited and Tether has been purchased, investors can then progress onto trading OMI against USDT.

Image via Gate.io

• To start trading OMI/USDT, users should navigate to the left hand side of the dashboard and search ‘OMI_USDT’, as shown in the image below.

Image via Gate.io

• Click ‘OMI_USDT’.
• Click ‘Buy OMI’.

Image via Tenor.com

• Et Voilà! That’s it! You’ve just bought yourself some nice OMI tokens.

Buying OMI On Bitforex

Bitforex is another relatively well-established crypto exchange allowing users to buy and sell OMI against Tether (USDT).

Bitforex, A Global Cryptocurrency Market Providing Trading And Derivatives Services. Image via Bitforex.com

To buy OMI on Bitforex, users will need to:

• Navigate to Bitforex.com.
• Register for an account.
• Buy USDT on a reputable exchange such as Binance.
• Transfer USDT from Binance to your Bitforex account wallet.
• Users can also purchase USDT with a debit or credit card directly on the Bitforex trading platform, for ease of use.
• For simplicity, the Bitforex Team provides users with a series of video tutorials on how to get started with using the platform. This video describes a step-by-step process on how to deposit USDT from, say, Binance to your Bitforex account and use it to start trading against other pairs like OMI.
• Once USDT has been deposited successfully into the user’s account wallet, investors will need to type ‘OMI’ in the search bar.

Image via Bitforex.com

• Click ‘OMI/USDT’.

Image via Bitforex.com

• Click ‘Buy OMI’ to initiate the trade.

Buying OMI On AscendEX

AscendEX is a very reputable cryptocurrency exchange offering a wide selection of tokens and different asset pairs. AscendEX listed OMI on March 2nd 2021 and, at the time of writing, the exchange manages over $1.1 million in OMI trading volume.

AscendEX, Formerly BitMax, Is A Well-Established Digital Asset Trading Platform And Cryptocurrency Exchange. Image via AscendEX.com

To purchase OMI on AscendEX, users will need to:

• Navigate to AscendEX.com.
• Sign-Up for an account.
• Activate their trading account by depositing digital assets such as BTC or ETH into their wallets.
• Trade ETH or BTC for USDT.
• Click ‘Market’.

Image via AscendEX.com

• In the search bar, type ‘OMI’ and select ‘OMI/USDT’.

Image via AscendEX.com

• Select the amount of USDT to trade from OMI, adjust any eventual stop losses, and click ‘BUY’.

• And You’re All Set!

Buying OMI On OKEx

OKEx is one of the top cryptocurrency exchanges and trading platforms, hosting over 20 million traders in more than 200 countries and offering 400+ crypto asset pairs.

OKEx, An Industry Leader In Cryptocurrency Trading. Image via OKEx.com

OKEx currently manages over $500k in daily trading volume for OMI, however, these metrics will most likely increase as the token starts gaining more traction over the long-run.

Purchasing OMI on OKEx is a rather straightforward process and in order to do so, investors will need to:

• Navigate to OKEx.com.
• Click ‘Sign Up’ to get started with an account.
• Click ‘Markets’.

Image via OKEx.com

• Type ‘OMI’ in the search bar.

Image via OKEx.com

• Click on ‘Trade’ on the right hand side of the dashboard.

Image via OKEx.com

• Select either ‘Limit’, ‘Market’, or ‘Stop’ order.
• Select the amount of USDT to trade for OMI tokens.
• Adjust any eventual stop losses.
• Click ‘Trade’.
• View all your open positions at the bottom of the trading dashboard.

Buying OMI On Uniswap

Uniswap is a leading crypto asset exchange that runs on the Ethereum blockchain and completely differs from traditional exchanges in that it proposes a fully disintermediated, decentralised ecosystem in which no single entity is allowed to own, control or operate its network.

Uniswap, One Of If Not The Most Widely-Adopted DEX In Crypto. Image via Uniswap.org

Furthermore, Uniswap leverages a fairly new kind of trading model called an automated liquidity protocol, which obviates the need for trusted intermediaries and prioritises decentralisation as well as security. However, OMI cannot be naturally traded on the Ethereum blockchain due to the fact that it isn’t a native ERC-20 token. Luckily, there’s a solution for this. Token Wrapping!

Image via Giphy.com

For anyone new to tokens and chain swaps, it is important to make it clear that you do not need to swap your tokens. In fact, wrapping your OMI tokens is simply a process that enables you to use them on the Ethereum blockchain. If, however, you do not intend on using your tokens on Uniswap or similar DEXes, you can leave your tokens as they are.

In order to wrap native GO-20 OMI tokens as ERC-20 OMI tokens (wOMI), ECOMI has designed a chain swap site to make the whole process a lot easier. But, before we progress any further, it is important to note that as all of these interactions happen through smart contracts, holders will need to fund the gas in both directions. That essentially means having both GO tokens and ETH for the contracts to execute and distribute wrapped OMI (wOMI).

To wrap OMI tokens, users will need to:

• Download Metamask.
• Add GoChain To Metamask. To do this, log into your Metamask wallet, change your pre-set network from ‘Main Ethereum Network’ to ‘Custom RPC’, as displayed in the image below.

Image via GoChain Medium

• Fill in the following details:

Image via GoChain Medium

• Once the GoChain network has been added, under the ‘assets’ tab, select ‘add token’.
• Select ‘custom token’ and enter the OMI contract address: 0x5347FDeA6AA4d7770B31734408Da6d34a8a07BdF
• The details for the token should automatically pre-fill with the name (OMI) and decimals (18). If not, enter them manually.
• Select ‘add tokens’ to confirm.
• You should now see the OMI token available to send and receive. When you use MetaMask at any point in the future, just make sure you remember to switch the network to GoChain, or you won’t be able to find your tokens.
• Then, send OMI from your preferred exchange to your Metamask wallet.
• In order to receive and view your wOMI on the ‘Main Ethereum Network’ on Metamask, you will need to add this new contract address: 0x04969cD041C0cafB6AC462Bd65B536A5bDB3A670 
• It may pre-populate the ticker and decimals, however, if it doesn’t, use Token symbol: wOMI with Decimals: 18
• Confirm and add the new token. You should now be able to see wOMI in your wallet.

Once you have set up MetaMask, are holding the tokens you wish to swap, and have both GO and ETH tokens in your account for gas, you can continue with the token swap process.

• Navigate to Chainswap.ECOMI.com.
• Click ‘Connect to Metamask’. If your Metamask is set to the GoChain network, you will see the swap direction is OMI > wOMI. If it is set to the Ethereum network, you will be presented with the opposite swap direction wOMI > OMI.

Image via chainswap.ecomi.com

• Once your wallet is connected, enter the amount of OMI you wish to swap and click ‘Swap OMI’.
• Confirm and Approve Transaction on Metamask.
• Once that transaction is approved and processed you will need to open your Metamask and switch to the Ethereum Mainnet in order to approve the distribution of your wOMI tokens.
• Return to the swap site and select ‘Pay Fee’ to fund the wOMI token distribution transaction.
• Once the transaction is fully confirmed, your wOMI tokens will be distributed to your Metamask address and you will be able to trade them on the Uniswap DEX.
• Happy Trading!

Conclusion

One particular segment in the world of cryptocurrency that has taken the markets by storm is the one revolving around NFTs, a new blockchain-induced economic, artistic and cultural movement spearheaded by the proposition of immutable on-chain ownership of assets.

Furthermore, the ability to store valuables on-chain as non-fungible tokens is proving particularly beneficial for artists and collectors as it creates a new, permissionless, disintermediated environment for them to buy and sell their art pieces. With the growing economic incentives that come with holding and trading non-fungible tokens, several NFT-centric marketplaces have come to life on the scene.

Apart from Binance NFT, Solanart, CNFT and Opensea, to name a few, one of the most obvious, consistently growing NFT marketplaces in the space is ECOMI with its VeVe platform. ECOMI is powered by its own native asset OMI, but this token isn’t as readily available as many other tokens in crypto, primarily due to the fact that it operates as a GO-20 token on the GoChain blockchain.

Thus, it was only natural for us to provide you with a step-by-step guide on how to get your hands on the OMI token in order to participate in its growing NFT ecosystem and, perhaps, even buy your first non-fungible token on the VeVe marketplace. Enjoy your OMI, folks!

The post How And Where To Buy OMI: Be Ready for the PUMP!! appeared first on Coin Bureau.

This second investor needs some kind of tool to do analysis, and as made clear in the headline we’re going to use TradingView. TradingView is a platform with price charts for just about anything. The prices are updated in real-time by the second, which gives you the most accurate information out there. TradingView is also equipped with a ton of different tools to do the most thorough technical analysis. Therefore, I suggest you now open up any chart from TradingView and try the different features introduced to you in this article.

How to set up TradingView

To get started you need to create an account. When you create an account, TradingView will automatically save your default chart template, which is very helpful. TradingView also offers paid plans but we will dive deeper into those later.

After creating an account, and opening up the price chart of an asset you watch the most, you can then start customizing the settings. First I suggest you choose how you would like the price to be shown, candles, bars, line, or something else. You can do this from the top left corner next to the time frame, and also while you’re there you can adjust the default time frame you’d like to use. The times range from as short as 1 second to as long as 1 month. After that, you can start to further customize how you’d like your chart to look.

Find out what everything does by playing around. Image via TradingView.

To access the basic layout settings you can either right-click the screen to access them, or you can directly access them by clicking the settings icon (looks like a gear) from the top right corner. Here you can find loads of stuff, some of which are purely aesthetic, while others can be truly useful in performing analysis.

Because there are a ton of different options available, and you might not know what they all do, I suggest you start playing around. Press whatever you like and see which lines and colors pop up from each option, try to find a good look and set-up for you. And if you don’t like a change going back is as easy as clicking the Undo button at the top of the chart.

Keep in mind though that some options won’t do anything for crypto charts, for example, the adjustment for dividends won’t be relevant for cryptos since they don’t issue any dividends. After you’re done playing around we’ll move on to the different tools and features you can use for analysing a crypto.

Different Tools for Analysing

Now that you’ve set up your different colored candles with a contrasting background (I like pink and blue candles on a yellow background) we can finally move on. As already mentioned, TradingView is highly useful for those who want to do technical analysis. When using TradingView there are essentially two ways of doing TA. You can either draw your own lines and indicators, or you can use the pre-built tools like Bollinger Bands and moving averages and form your TA analysis based on them. Now in this section will go through what you can find from the left side of your screen.

Here you can find everything from a simple line all the way to something called a polyline. From the second icon from the top, which is a line, you’ll find all the basic drawing functions you’ll need. This is also what you’ll most likely use the most since in every level of TA it’s common to draw trend lines for both highs and lows. By drawing these you can also find bigger patterns which you then can analyse more thoroughly with other tools.

These tools will be the ones you use the most, so make sure to know how to use them. Image via TradingView.

Ffrom the next icon, below the line, things will get more complicated. If you’re new to TA you won’t understand a thing and these tools will be completely useless to you. Therefore for everyone starting out with TA, I suggest you head over to Coin Bureau’s Youtube channel where our lovely Guy has spoiled us by making a three-part introduction to technical analysis.

Essentially though, these are all indicators you can use to discover patterns from various price points. Again I suggest, even for those who know TA, that you play around with these and see what they do. Some might even be familiar and you just didn’t know the name of it. And to those who still don’t have a clue what any of them do, no worries. You don’t have to know how to use every single thing on TradingView to conduct valuable TA. Sometimes the most basic analysis works the best.

It’s just trading, not rocket science, although we do want to find those coins that’ll go to the moon.

Below the many confusing patterns, you’ll find additional symbols for even more confusing patterns but also for simple drawing tools. One thing from here worth mentioning is the risk/reward tool. You can find this from the smiley face symbol. You can look at the risk-reward for both long positions and short positions. Just position the middle of the tool on the price you’re about to enter and then adjust the top and bottom to match where you’re going to place your stop loss and take profit levels. This gives you a good overview of the trade you’re about to execute and whether your entry price needs adjustment for the risk/reward to be justifiable. Under these two tools you’ll also find other useful things, so play around. Next up we’ll talk about the indicators you can automatically set up on your chart.

Indicators

If you look at the top of your screen you’ll see the text “indicators” with a symbol next to it. This is where you’ll find every indicator you could ever imagine. There are both indicators built-in by TradingView along with a public library. The public library is excellent for those who follow someone via youtube or other places , who likes to make their own indicators.

Again, as with anything in TradingView, there are a lot of options to choose from. Their own built-in ones are the most commonly used and you will find some familiar and useful ones there. The public library on the other hand is endless. As you can see there are the number of likes next to the name of each indicator which gives you a good overview of whether it’s something useful or not. You can also search for a certain one if you know what you’re looking for.

Learn how to use these, they are powerful tools. Image via TradingView.

The last you can do here is to create your own custom indicators. This will need some coding skills and can be quite hard to do if you’re not experienced. However, those who do trading seriously might find some indicators which can be modified to work even better, and therefore you might be interested in the opportunity to use this feature.

Other Features

As already mentioned, TradingView is so much more than just a price chart platform. From the right side of your screen, you’ll find all the features that aren’t related to the charts. This offers the opportunity to conduct a much more thorough analysis.

Watchlist and Alerts

First, from the top you can find your watchlist. There’s not much to say about this. Simply pick the cryptos you like and add them to the watchlist. One thing which is good to remember is that when you type in Bitcoin, for example, it offers numerous trading pairs for it, therefore make sure to pick the one you want to use, and also the right exchange. If you pick the wrong trading pair or the wrong exchange, it can vastly impact your analysis and trades.

You don’t have to look at the chart all day, simply set up an alert and grab a coffee. Image via TradingView.

The second symbol from the top shows your alerts. These alerts are price alerts that you can put for certain price levels. For example, you might have noticed that Bitcoin faces resistance at $50,000 and you might be interested in entering a long trade if Bitcoin breaks above that level. There are a few ways to set up these price alerts. First, you can either use the button on the right or there’s also one at the top of your screen. These will open up a menu where you can set up which price you want to be notified about and how you want to be notified.

The other way is to use your pre-drawn lines. For example, if you’ve drawn an upwards moving trend line from previous lows you might be interested in entering when the price again hits that line. To do this you can right-click on that line and choose “add alert on trendline”. This is extremely useful for both doing trading and for beginners to test their hypothesis.

News and Calendar

Next up on the list, we have an icon that looks like a newspaper, and that’s exactly what it is. Here you can find news about the asset you’re analysing. This is particularly useful for those who like to do more than just TA before entering a position. For trend traders, it opens up the opportunity to see whether the sentiment in the most recent news is in line with the price action. However, keep in mind that this works best for larger cryptos and the news coverage for smaller coins and tokens might not be up to date. Thus, what you see in the section might be news on the crypto market in general rather than the specific crypto you’re analysing.

TradingView offers news from various sources. Image via TradingView.

The next two things do not offer much for crypto traders since the first one is just a data window with a few simple things like highs, lows, and volume. Yes, these are important numbers but they can also be found from the chart. The thing below that is the hotlist. This would be useful if it were to feature cryptocurrencies. Currently, you can only choose different countries’ stock exchanges. However, for those who like to trade crypto-related equities, this is something you can look at to see if the company you’re researching is there.

Below the hotlist, you can find a calendar. This gives you excellent information about both macroeconomic indicators that are being published along with certain statistical data about the asset you’re researching. You can filter from the top so that it only shows the most important events. These are usually the big macroeconomic indicators and they are good to keep an eye on since they give useful indications on how theworld’s economies are doing and where the broader financial markets might be heading.

Public Interactions

From the lightbulb symbol down to the two arrows, you’ll find different social tools. Here you can enter public chat groups and search for ideas from others and also share your own ideas. Just remember not to listen to all the expert traders that are trying to convince you to pump a certain coin. Do your own research and invest according to that. Additionally to the public chats, you can also create private chats if you have a friend who is also interested in analysing and trading cryptocurrency.

Be aware of scammers that are trying to rip you off.

Another fun tool is the streaming tool, which is still in its BETA mode. Here you can watch other people do trades and analyse certain assets. This might be something you can use to find those next tradable assets, but as with chats, be aware of scammers. The more someone is talking about something pumping the less you should listen to them. If someone on the other hand provides you good analysis by drawing the patterns and explaining how they work then there’s no harm in listening to that.

Crypto Screener

Before you get to analysing a cryptocurrency you need to know which one to pick. For this, TradingView offers the perfect opportunity. From the bottom left of your screen, you’ll find a button that says “Stock Screener”. You can change that to a crypto screener which then gives you all the cryptocurrencies TradingView offers. With this tool, you can then filter all the options with numerous different metrics.

From the crypto screener, you’ll find a useful metric to watch, which is the TradingView rating. This consists of several indicators that show whether an asset has strong momentum or not. This could prove to be particularly useful for trend traders, so be sure to have a look at it. Then when you find a few cryptocurrencies which you like you can start analysing them by comparing their charts. Another useful comparison could be with Bitcoin to see in which phases of the Bitcoin cyclethat particular crypto tends to soar. This feature can be found in the top left of your screen.

This too is a powerful tool to find those big money trades. Image via TradingView.

To test whether the TradingView rating or your analysis is any good you can use TradingView paper trading. This means that you trade with fake money but with real prices. This is perfect for those who want to practice and maybe try some new TA.

In comparison to many other paper trading tools, TradingView offers the most up to date prices and it also offers the opportunity to, for example, use stop losses. It’s also handy to practice on the same platform where you’re doing the TA. Then when you’re done playing around with fake money you can just connect your broker to TradingView and trade directly from there. TradingView supports brokers like Gemini. 

Paid Plans

As mentioned earlier in this article, TradingView offers paid plans. They offer three different ones with the cheapest being $14.95 per month. For beginners, I would suggest you start with the free plan. The benefits you get from paying are simply that you have more storage and a few additional tools.

The paid plans allow you to view more charts at the same time, save more templates, and use more indicators at the same time. Therefore when you’re just starting you want to keep things simple and might not need 25 indicators displayed on your screen at the same time.

See which one suites you the best. Image via TradingView.

Then naturally when you move on to more advanced TA and maybe need some of the paid custom tools along with more storage to save all your TA’s for different charts, you might want to upgrade your plan. However, before paying anything they now offer a 30-days free trial, so make sure to use that if you’re considering an upgrade.

Conclusion

Hopefully, you now have a better understanding of how TradingView works and how you can use it to potentially find the next big trade. Just remember that the platform itself does not make you a pro-trader, but rather your knowledge does. To even dream about using all the fancy features TradingView has to offer you need to be very familiar with TA. TradingView won’t give you any 100x gains if you don’t know how to do research, not even if you were to pay for the most expensive plan. Therefore make sure to educate yourself on TA and with that, you will learn how to use the platform and get the most benefit out of it.

Furthermore, although we covered a very broad set of different features there’s still so much more left to discover in TradingView. Therefore I suggest you head on to Youtube where there are videos about small tips and tricks along with videos that show you how to use different features and indicators. And also, as multiple times encouraged, play around. The best way for you to truly see what something does is to just try it. You can always go back to the way it was with command+z. Have fun!

The post How to Use TradingView to Analyze Cryptocurrencies appeared first on Coin Bureau.

Diversification is tough since trading fees can eat most of your capital, and the amount you put in one asset seems close to nothing. On the other hand, you can’t buy only one company either since you don’t know which one to pick.

This problem still exists for many. Especially in crypto markets, buying a real cryptocurrency might feel hard and intimidating, not to mention that many people don’t even know what a cryptocurrency is. Luckily for us, however, we now have tools to solve these problems.

Exchange Traded Funds (ETFs) and other fund types open the opportunity for us to put a small amount of money into a bigger pool of money. This pool of money can, in turn, be diversified into a large number of assets according to the fund description. This type of investing is considered lower risk since we rely on professionals to know where to invest our money. Both ETFs and funds are thought of as investments which you buy and hold, not as speculative assets for traders.

ETFs and Funds for Cryptocurrencies

Many of you have likely laid eyes on at least a few news articles about discussions and filings for US-based crypto ETFs. The demand for crypto ETFs has surged because institutions want exposure to the crypto market without directly buying cryptocurrencies.

This has caused numerous companies to file for permission from the SEC to issue crypto ETFs. However, the SEC has not yet granted any permissions for ETFs, which has caused many people to get frustrated since there are already other countries offering these, for example, the US neighbour Canada.

There’s lots of money waiting for an ETF approval from the SEC.

Funds are starting to pop up here and there, the most well-known one being the Grayscale Bitcoin Trust (GBTC). Another well-known and high-profile one is the Bitcoin Fund issued by New York Digital Investment Group (NYDIG). In addition to the demand for an ETF, the demand for other crypto funds has been exploding. One reason for this is that there aren’t any crypto ETFs in the US.

One significant piece of news recently for the whole crypto market was JP Morgan announcing they would make six different crypto funds available for their internal clients. This is extremely good news when even banks that could potentially take a massive blow from cryptos have to accept that their clients want to invest in cryptocurrencies, or otherwise they will leave.

Excellent example of the increasing demand for crypto exposure. Image via CoinTelegraph.

On top of crypto ETFs and other funds, there is still one similar investment, blockchain ETFs. Blockchain ETFs invest in companies that are active in both cryptocurrencies and blockchain. These include the likes of Riot Blockchain, Square, and Coinbase.

The problem with these is that you have to be quite careful choosing what you buy. Many of these ETFs have been criticized for not really relating to the topic they advertise. Goldman Sachs, for example, has plans to issue a DeFi ETF, which will hold companies including Nokia, Alphabet, and Sony, maybe not the companies you immediately think of when talking about DeFi unless the PS5 is something other than a gaming console.

Why do we need crypto ETFs and Funds?

As pointed out in the introduction, many don’t know where to put their investment capital. Because they don’t know how to build a portfolio they tend to either copy what someone else does or let them do it for them, either in the form of ETFs or some other kinds of funds. All this applies to cryptocurrencies as well.

Since we are still extremely early in their development, there is much less knowledge about investing in cryptos versus stocks. Cryptocurrencies are also vastly different kinds of assets than stocks, and the whole process of buying some and storing them in a wallet of some sort can be intimidating.

There are also over 11,000 different coins and tokens listed on CoinMarketCap, which is a lot considering that most newbies usually know about Bitcoin, Ethereum, and Dogecoin. Therefore if you are someone who has been an investor in cryptocurrencies for a longer time, then you might not feel the need to invest in a crypto ETF, but for people entering the crypto markets for the first time, it might feel a lot safer to start it off with buying an ETF.

The same also applies to institutions and wealthier people. When we’re talking about people who manage or have at least 100 million, they might not want to go through the trouble of researching something they don’t truly understand. Still, they might be very tempted to allocate 1-5% of their portfolio to something that can go up hundreds of per cent in a year.

Wealthy people can easily allocate 1-5% of their portfolio for a potential 5-10x return.

Furthermore, it’s much easier to report taxes on ETFs versus cryptos. ETFs are treated like stocks, which makes taxation simple. In cryptos, depending on where you live and which exchanges you use, it might be quite a lot of effort to report taxation on cryptocurrencies.

Many countries have not yet had the time to investigate cryptos fully, and the regulations might be a bit confusing. Therefore, for institutions to avoid the risk of using a scammy exchange or storing their cryptos without reporting it the correct way, might feel like too big of a risk.

Digital Assets Managers

Now for most people, these digital assets managers are completely useless since they do not accept small amounts of money, and many retail investors (like our readers) probably invest in cryptocurrencies directly.

Still, even though you’re not using these companies yourself, it’s good to know what companies the news refers to and understand how big of an impact these asset managers can have since they manage huge sums of money. Furthermore, although you won’t use the company, you might still buy their products from the secondary markets.

Grayscale

Grayscale is a large asset manager with over $40 billion under management. They promote themselves as leaders in digital currency investing. At the moment, they offer both trusts that are tied to one currency alone, along with two larger funds. If you want to become their private client, you need to have an annual income of at least $200,000 and a net worth of $1 million. Keep in mind, however, these figures do include both you and your spouse’s income and net worth.

For most of us, that is quite the barrier to entry, but no worries. Many Grayscale products are offered over the counter on stock exchanges, which means you can trade them as you do with any stocks. Most of you who are reading this article probably already own cryptos. Therefore investing in a stock that acts just as crypto might not be that tempting or necessary. However, Grayscale offers a few products that might be interesting for you too; their diversified funds.

This is DeFi, take notes Goldman Sachs. Image via Grayscale.

Both of these funds have a minimum investment of $50,000 and an annual fee of 2.5%. However, those who purchase the fund have a one-year holding period before they can trade their holdings on the secondary markets. Sadly for most of us, only one of these funds is available since their DeFi fund was launched in July 2021.

This means we need to wait for one year until the first shares hit the market. The fund we can invest in now is their large-cap fund which has major positions in both Bitcoin and Ethereum, along with smaller positions in Cardano, Chainlink, Bitcoin Cash, and Litecoin.

CoinShares

CoinShares is the equivalent to Grayscale; the difference is that CoinShares operates in Europe, and the amount they manage is substantially less than what Grayscale manages. CoinShares offers various services and products for their clients, from their physically-backed ETPs (Exchange-traded products) to simple investment advisory.

CoinShares is a leading pioneer in digital assets investing, this is what they have to offer for their clients. Image via CoinShares.

The two interesting things CoinShares offer are their ETPs and their crypto indexing products. Their ETPs work exactly like the one’s offered by Grayscale. In other words, the ETPs track the price of one particular crypto. Their index futures, on the other hand, track a broader set of things. Currently, they offer three different indexing strategies.

The first is the Elwood blockchain Global equity index which tracks the cryptocurrency and blockchain-related equities. The second is another one mirroring Bitcoins price through updates every hour. The third one is more interesting since it’s a mix of the three biggest cryptocurrencies by market cap plus gold. The hypothesis is that it works as a great hedge for inflation while offering lower risk than just holding Bitcoin since it also includes gold.

3iQ

Next up is Canada. Yes, 3iQ is the Canadian equivalent of the previous two, although it’s again a bit smaller. They offer their own Bitcoin and Ethereum funds along with two others issued by CoinShares. Additionally, they offer another one  with a mix of Ethereum, Bitcoin, and Litecoin. All in all, nothing special here; it’s just good to be familiar with the name, especially if you’re Canadian.

Blockchain ETFs

As previously mentioned in this article, Blockchain ETFs can be an excellent alternative to cryptocurrency ETFs and other funds. If you find a good ETF with a great mix of companies that are highly active in the crypto space, along with quality companies that have good potential, you can decrease your portfolio’s overall risk while improving your return. If you want to learn more about which companies could be well-positioned and make significant moves in the crypto space, then have a look at this Coin Bureau article about crypto-related equities.

High Crypto Exposure

Amplify Transformational Data Sharing ETF (BLOK). This ETF is great for all who want exposure to the crypto markets. It features all the major crypto-related companies; just have a look at the picture down below. It also has a good selection of blockchain industries. Its largest component is for transactions that consist of mostly Paypal and Square.

The year-to-date return from this ETF is almost 30%. It might not be as much as Bitcoin itself (almost 60%) but keep in mind that when Bitcoin tumbled 50% from $60,000 to $30,000, BLOK only lost under 30% of its value. This shows that this is a great investment for those who can’t handle, or aren’t looking for, the heavy volatility of cryptocurrencies but still want exposure to one of the most promising new technologies.

BLOK offers a great mix of companies along with good diversification. Images via Amplifyetfs.

Other similar ETFs would be the Siren NextGen Economy and VanEck Digital Assets ETF. They hold mostly the same companies but with slightly different allocations. It’s hard to say which one is the best in the long term, so make sure to do your own research before buying. The fees can also vary, so keep that in mind.

Quite similar to these two would be the Bitwise Crypto Industry Innovators ETF. This I would still consider a higher risk ETF and suitable for those more hardcore crypto lovers. This ETF holds only true cryptocurrency companies, with the biggest allocation being MicroStrategy (13%). This gives the ETF a large exposure to Bitcoin, which means it’ll move somewhat together with Bitcoin.

Low Crypto Exposure

I’m only going to briefly mention these since I couldn’t find many that make much sense to invest in if you’re looking for exposure to the crypto markets. Many I found were on the same level as the Goldman Sachs DeFi ETF mentioned earlier.

However, one ETF that could be thought of as a Blockchain ETF and offers a good potential is KOIN by Capital Link. This includes companies like Nvidia, Microsoft, and Visa. Most of these companies are already well-established with both good history and growth. This naturally lowers the downside risk, but on the other hand, many of these companies are massive, which makes the impact of their crypto-related incomes relatively small.

Many great companies, however, not maybe the leaders in blockchain, nor cryptocurrencies. Image via Capital Link.

However, for someone who likes both equities and cryptocurrencies, this could be a nice bridge between the two worlds. Even if cryptocurrencies don’t become successful, this ETF might still offer decent returns.

Conclusion

As mentioned by many, including myself, the barrier of entry to cryptocurrencies sometimes feels intimidating and scary. Therefore it’s great to see these “newbie” products, which will hopefully pour lots of money into the cryptocurrency markets. Also made evident in this article is that there are many different products to invest in, and likely lots more coming.

It will also be interesting to see more of these mixes of cryptocurrency sector funds and ETFs like the one Grayscale offers for DeFi. The more narrow and in-depth funds will also be great since it highlights how big an ecosystem the whole cryptocurrency space is, and hopefully, it will boost investment in smaller altcoins.

Additionally, for those who are wondering why we haven’t yet seen an ETF in the US and when it might be available, you should know this. The cryptocurrency regulatory frameworks are being formed all over the world as we speak. This is why the US most likely first wants to develop proper rules and regulations for cryptocurrencies before allowing large amounts of money to pour into something they can’t control. Hopefully, we will see an ETF before the end of 2021. It now looks as if an Ethereum ETF might be coming before we see one for Bitcoin.

It’s not just a coincidence that numerous companies want a crypto ETF approved by the SEC at the same time. All these crypto-related products make it impossible for even the most anti-crypto people to turn a blind eye. Cryptos are here to stay, and they are going to revolutionise many sectors.

The post Guide to Investing in Crypto ETFs and Funds appeared first on Coin Bureau.

Ultimately, the make-up of your portfolio, with regards to any asset, will hinge on your personal risk appetite. Are you looking to park some of your hard-earned cash into a long-term position in a relatively stable asset that might produce steady rewards over time? Or are you looking for as quick a return as possible and don’t mind risking the potential loss of some of your funds?

Chances are, if you’re looking at cryptocurrencies at all, your risk tolerance is reasonably high, given the high volatility involved in nearly blockchain investments. However, within the crypto-space, assets vary massively in volatility and, thereby, in risk-level.

To make life easier, we’ve broken down the crypto currency market into five categories, beginning with the safest and moving downwards towards the riskiest assets. These five categories are:

• Stablecoins
• Bitcoin (BTC)
• Altcoins
• Initial Coin Offerings
• Meme coins

The first thing to say, before we delve into the realms of different cryptocurrencies, is that the following rankings are based on prevailing opinion and past performance. In the grand scheme of things, cryptocurrencies are in their infancy, and any predictions of future price movements are fundamentally extremely speculative in nature. That said, using a few criteria, we are able to effectively rank various assets according to their respective risks.

Stablecoins

At the least risky end of the cryptocurrency spectrum are stablecoins. These are cryptocurrencies that have their value tied to some other asset such as gold or fiat currency. Examples include USD Coin (USDC), USD Token (USDT) and PAX Gold (PAXG).

As you might have guessed from the names, USDC and USDT are pegged against the US dollar. One USDC, for example, is fully backed by one dollar, held in a bank account. Each time someone purchases a USD Coin, Circle, the developer of USDC, are obliged to purchase one US dollar. What’s more, every USDC is fully redeemable for one US dollar. The result is that the value of one USDC, at any point in time, is almost exactly one USD.

Below image from CoinMarketCap.

Similarly, PAXG is pegged to gold, with one PAXG token fully backed by one fine troy ounce of gold. If you own a PAXG token, you also own the underlying asset of one fine troy ounce of gold. PAX Gold is the only gold token that you can redeem for LBMA-accredited Good Delivery gold bullion bars. This gold is held in a vault by Paxos Trust Company.

The benefit of tying the value of a cryptocurrency to another underlying asset is that you can circumvent the general volatility of cryptocurrency markets whilst still holding a digital asset. As the US dollar and gold are generally less volatile than even the most stable of other cryptocurrencies (like Bitcoin), the result is a more stable, less volatile blockchain asset. Hence, the name, Stablecoins.

The below image, from CoinDesk, helps to illustrate the relative stability of a currency like USD in comparison to BTC by showing the respective daily returns for both assets trading against the Canadian Dollar, since 2016.

However, the tradeoff for this stability is you are very unlikely to see any significant returns on your stablecoin positions, over and above the returns you would receive from simply holding the underlying asset. Here, lower risk is accompanied by low reward.

That said, many investors will hold some form of stablecoin in their portfolio to provide liquidity for swiftly executing future purchases without the hassle of depositing using standard fiat currencies like USD, EUR or GBP. Furthermore, taking profits in the form of a stablecoin may well allow you to avoid some of the fees involved in converting your cryptocurrency profits into fiat, provided you are looking to reinvest your profits.

One further reason to hold a stablecoin is that it can be staked to receive greater year on year rewards than if you were to hold USD in a traditional bank account.

Bitcoin

While it might seem strange to give BTC a category all of its own, I have done so for good reason.

Bitcoin is the ‘original’ cryptocurrency and if someone has heard about cryptocurrencies, chances are they will have heard of BTC. What’s more, BTC dominates the crypto market with generally more than half of all the capital in cryptocurrencies sitting in Bitcoin.

The below graph from Trading View tracks Bitcoin dominance over the past five years.

Within the overall crypto-space, Bitcoin can be seen as a relatively un-risky asset. This is because BTC has so large a market cap when compared with other cryptocurrencies. According to Statista, Bitcoin’s market cap exceeded one trillion USD in April 2021. A higher market capitalisation means that a greater volume of buying/selling is required to move the price upwards or downwards respectively, resulting in lower volatility.

According to CoinDesk, between May 18, 2021 and June 18, 2021, the price of BTC dropped from $43,144 to $37,722; a drop of 12.6%. Contrastingly, Ethereum, the second biggest cryptocurrency by market capitalisation, fell from $3,232 to $2,343 in the same time period; a fall of 27.5%.

Whilst it is true that a fall of 12.6% is a large decrease to occur in just one month for any asset, this is small in comparison to the losses seen by alt-coins, like Ethereum and many others, in the same period.

Bitcoin’s primary use is as a store of value and some ‘Bitcoin Maximalist’ investors center their investment strategies around stock-piling the world’s most popular crypto-asset, believing that its utility as a store-of-value make it the best coin to HODL for the long term.

Indeed, prevailing opinion suggests the entire cryptocurrency market cycle is triggered by the Bitcoin halving that takes place roughly every four years, with the most recent halving taking place in May 2020. A Bitcoin halving occurs when the total year-on-year rewards available for mining is reduced by 50%, reducing the available supply.

This helpful chart from CoinDesk helps to illustrate the correlation between BTC price and the timings of Bitcoin halvings.

Regardless of its huge market capitalisation, dollar cost averaging into BTC is still considered a sound investment strategy by many. Indeed, several prominent NFL players have started to convert their entire salary into Bitcoin!

NFL players are helping to drive Bitcoin adoption.

Sean Culkin, of the Kansas City Chiefs, was the first player to take this monumental step.

Altcoins

By ‘Altcoin’, what we really mean is any cryptocurrency other than Bitcoin. These altcoins range from a coin as big as Ethereum, with a market cap of $247 billion, to new and upcoming projects, many of which have their foundations on the Ethereum blockchain.

Naturally, these assets are more volatile than both stablecoins and Bitcoin. However, this increased volatility means there is greater potential for profits and, unfortunately, losses as well. Trading in altcoins is a quite popular activity for a subset of crypto investors!

According to CoinDesk, if you had purchased BTC on October 1, 2019, and sold your position on April 1, 2021, you would be up a highly impressive 447%. However, if you had held Cardano (ADA), a highly prominent altcoin, you would be up a staggering 1,082%.

Cardano has seen massive increase in price.

These increased gains are caused by the lower market cap of altcoins when compared to Bitcoin and by the fact that adoption of these altcoins is of a higher rate than that of Bitcoin. To put it simply, they are newer and, therefore, have greater potential for upward price movement.

Of course, this earning potential should be tempered by the fact that, being less established, altcoins are an altogether riskier asset to hold because they also have a greater potential for downward movement.

That said, the levels of risk attached to these altcoins vary wildly from coin to coin. Ethereum has reached so high a level of adoption and market cap that it is now considered to be relatively un-risky. Indeed, we might consider any coins in the top-10 by market cap to be reasonably safe compared with the universe of other cryptocurrencies.

Top 10 coins by market cap (August 2021). Image via CoinmarketCap.com

The reality is that the lower down the ‘market cap list’ we go, the smaller and, therefore, riskier the asset becomes. At the time of writing, the 100^th coin by market cap (OMG Network’s OMG token) had a market cap of $629 million; this is only 0.21% of ETH’s market cap at the same point in time.

Whilst you have a chance to achieve multiple X gains on a smaller coin, there is a greater chance that said coin will meet with a collapse in value, wiping out that portion of your portfolio.

Many investors in cryptocurrency will look to make increased profits on the altcoins. However, as previously mentioned, the altcoin of choice and what proportion of your portfolio you invest into it, will boil down to your own risk appetite and research.

‘Others’ (Meme Coins & ICOs)

In spite of the highly impressive gains that some of the top altcoins have experienced, for some investors, this simply isn’t enough. Indeed, some of the most profitable strategies have involved investment into what are now known as ‘meme coins’, or even the buying of coins before they make it to market, through processes known as initial coin offerings (ICOs).

Meme Coins

Whilst meme coins technically constitute altcoins, we’ve given them their own category owing to their increased risk level.

In reality, meme coins are a breed of altcoin. However, they differ in that, unlike coins like Ethereum, they have no real use case. They are valuable only due to promotion by influencers and the popularisation of meme-culture. They are typically highly volatile in terms of price, market cap and trading volume.

The second most well-known cryptocurrency after Bitcoin, is Dogecoin (DOGE). Originally a joke, born from the popular ‘Doge’ meme, the astronomical gains that DOGE has seen in 2021 cannot be dismissed. Dogecoin was made famous by Elon Musk’s comments on Twitter in early 2021, and by the incredible price action it has undergone, shooting up an incredible 1,250% in the period between April 1, 2021, and May 8, 2021.

Much wow. So crypto.

On January 1, 2021, DOGE’s price was $0.005405 but by mid-May, its price had skyrocketed to upwards of $0.7. In other words, its price increased by a factor of more than 129 in less than 6 months. This inflated price was the result of Musk effectively popularising the token through various social media outlets.

Elon Musk loves Dogecoin! Image via Twitter.

Whilst many of the cryptocurrencies we see today, such as Ethereum and others, have real world use cases, Dogecoin has none. Its rise in value was the result of hype and hype alone.

While Dogecoin was the first, it is no longer the only meme coin to have seen extreme gains in 2021. Shiba Inu’s SHIB token has proved hugely profitable for early investors too and the number of meme coins available to speculate on grows by the day.

This reliance on social sentiment with no fundamental use cases or strong tokenomics makes meme coins a risky gamble at best and, at worst, a sexy way to throw away your money. However, as investors, we find ourselves unable to ignore the unrivalled upward potential of such unpredictable cryptocurrencies.

ICOs

ICO stands for Initial Coin Offering and is the cryptocurrency equivalent of an IPO (Initial Public Offering) in the stock markets.

In short, by offering a portion of the total supply of a token up for purchase before that token goes to market, developers can raise capital to assist in future development and advancement of their crypto project. Indeed, the sums of money they are able to raise can be herculean in some cases. Ethereum held an ICO in 2014 that managed to raise $2.3 million in its first 12 hours.

From an investment standpoint, initial coin offerings provide a way of buying into the next big cryptocurrency as early as possible and, oftentimes, at a hugely discounted price. The price of one ETH during its 2014 ICO was a mere $0.30. Let’s not forget that Ethereum’s price in mid-May of this year was as high as $4,133. That’s right: if you had managed to get hold of $75 of ETH in its ICO, and liquidated in mid-May of 2021, you would be a millionaire in USD terms.

ICOs have been a source of massive wealth for some.

The risk of buying into ICOs is that, if a cryptocurrency is holding an ICO, they are unlikely to be established. In other words, they are in their infancy. It can be difficult to discern whether or not the project in question is the next Ethereum, or whether it will tank to negligible value, shortly after going to market, resulting in massive financial losses for investors.

What’s more, it is not uncommon for individuals to set up an ICO, allow people to buy in and inflate the price of a token, only to quickly liquidate their substantial holdings of the token to make vast amounts of money for themselves and tank the price for everyone else. This is known as a ‘rug pull’, a phenomenon that should be in the back of your mind whenever you buy into a cryptocurrency as early as the ICO phase.

The only way to be sure you are not about to get played by nefarious actors is to carry out in depth research into the project before investing. With enough information, you may well be able to spot the next big thing. This is true of any cryptocurrency investment but is especially true when it comes to ICOs.

Portfolio Allocation

It follows from the above rankings that, if your risk appetite is low, you are likely to want to adopt an investment strategy such as dollar-cost-averaging into high-cap cryptocurrencies like BTC and ETH. Indeed, this is the strategy that I use for my personal portfolio.

Dollar-cost-averaging is an investment strategy that aims to mitigate the volatility of an asset by buying at regular intervals regardless of price.

Dollar cost averaging is one good way to accumulate coins.

By contrast, if you are willing to gamble with your funds, you may want to spend time trying to predict the next Dogecoin or successful ICO; a risky strategy but one that has the potential to pay off in a very big way indeed.

Naturally, you may wish to adopt a strategy that involves investment into all five of the above categories. However, your risk appetite will influence the proportions you allocate to each category.

An example:

One possible portfolio layout may look like this. Let’s call this investor, John:

• 25% Bitcoin
• 25% Ethereum
• 15% USDC
• 35% Altcoins

This is just an example portfolio that I have made up. However, we can see why someone might want to construct a portfolio just like it.

15% of John’s portfolio is allocated to USD Coin. As previously mentioned, John is unlikely to see big gains from his USDC. It is likely, however, that John holds this USDC to make sure he has the liquidity to rapidly execute a trade if he spies an opportunity that he wants to enter quickly. Making a trade directly from USDC is quicker than buying a coin using his bank card every time. What’s more, John may have taken profit on a trade that he is, for now, holding in this particular stablecoin.

John also allocates 25% of his portfolio to BTC. Given the high adoption level of Bitcoin, John sees this as a relatively safe investment. Indeed, if the cryptocurrency markets are performing well, it is highly likely that BTC is experiencing this too.

John’s reason for holding another 25% in Ethereum is not dissimilar to the aforementioned reason for holding Bitcoin. The second largest currency by market cap, Ethereum is relatively safe too but, being younger than Bitcoin and with a plethora of Ethereum developments (Dapps, improved NFTs, increased DeFi use cases, and staking) in the works, he expects to see greater gains on his ETH than on his BTC.

The remaining 35% of John’s portfolio is held in other, lower cap altcoins. These altcoins might include, Cardano (ADA), Polkadot (DOT) and Polygon (MATIC) or countless others. A number of investors are highly bullish on these coins and John is hoping to see profits even greater than those obtained from his Ethereum position. Perhaps John has also sought to diversify his portfolio into the NFT space too. He may well hold Origin Protocol (OGN) or even AXS, the native currency to the growing NFT game, Axie Infinity.

These altcoins constitute John’s riskiest assets due to their relatively low market capitalisation, and it is for this reason that he is holding only 35% of his position in said coins.

We notice also that John does not hold any meme coins. He has decided that, despite the possibility of multiple X gains, such coins are risky enough to fall outside of his own personal risk tolerance.

A properly constructed portfolio will increase returns while reducing risk.

The above portfolio is just a fictional example of how someone, like John, might allocate their cryptocurrency position. However, we can see the thought process that a potential cryptocurrency investor will look to engage in. John’s portfolio can be considered reasonably well diversified and in line with his own risk appetite. Most importantly, John has done his own research before investing into any of the above-mentioned coins.

If you’d like the see the specific breakdown of Guy the crypto king’s portfolio, then I suggest subscribing to his weekly newsletter. You can do that, here. In it, he gives his current portfolio, any changes and why they’ve been made, as well as a wealth of cryptocurrency news and wisdom.

Conclusion

There is much more to investing in cryptocurrency than portfolio allocation. Methods like staking, for example, are something long term holders may well want to investigate. Indeed, where you actually store your cryptocurrency position is a topic in its own right!

You might want to keep some crypto in an exchange for swift trading (despite the security risks), whilst leaving most of your position in an ultra-safe hardware wallet.

If you want to learn about these topics, then you can’t go wrong by checking out other articles on our website or taking a look at our YouTube channel.

That said, hopefully this article has given you the basic information you need to start thinking about how you want your crypto portfolio to look, with respect to your own risk appetite. By understanding the respective risk levels of differing cryptocurrencies, investors can best equip themselves to deal with high levels of volatility that is part and parcel of the cryptocurrency markets.

At the end of the day, there is no replacement for doing your own research. Whilst it is healthy to learn from those more experienced in the crypto-space, the only advice worth taking is your own!

The post How to Build a Cryptocurrency Portfolio: Fill Your Bags! appeared first on Coin Bureau.

Among these blockchain-enabled value propositions is Decentralised Finance (DeFi), a movement that is spearheading an attractive, alternative financial ecosystem and has firmly established itself as a true powerhouse in the digital asset space.

Decentralised Applications (dApps) constitute one of the most notable developments to come out of DeFi technology and their uniqueness lies in their ability to be disintermediated from third party actors and permissionless, meaning that anyone with an Internet connection and a supported wallet can interact with them.

DeFi Introduced dApps To The Digital Asset Space And Is Reshaping The World Of Finance As We Know It

Contrary to traditional financial applications, dApps typically do not rely on trust and they do not require custodians or middlemen to function, which essentially makes them ‘trustless’. These inherently decentralised qualities allow dApps to perform a wide selection of use cases, including decentralised trading, lending, borrowing, staking, liquidity provision and, more importantly, yield farming.

Yield farming is one of the newer liquidity concepts to emerge from the DeFi ecosystem, and it entails a process of generating capital and earning rewards through crypto asset holdings using DeFi liquidity protocols. Yield farming allows anyone to earn passive income using the decentralised ecosystem of ‘money-legos’ built on Ethereum.

Because of this, yield farming may very well change the way crypto investors HODL their assets in the future, as it enables them to leverage the built-in high APYs and staking models of many DeFi protocols, as opposed to just leaving their assets lying idle in a wallet somewhere.

The Origins Of Yield Farming

Bitcoin can be considered the first deployment of DeFi as it enabled people to execute trades and financial transactions without the presence of intermediaries. Thus, Bitcoin and a few other early cryptocurrencies arguably initiated the first DeFi wave. The second wave, however, was led by the Ethereum blockchain as it added another layer of programmability to the technology.

To this day, the majority of crypto assets and blockchain-based projects are built on Ethereum because it provides the openness, infrastructure and liquidity required to implement dApps and perform asset swaps efficiently, despite the fluctuating, high gas fees.

The Majority Of dApps Are Building On Ethereum Primarily Because Of Its Liquidity And Network Effect

Some of the advantages of DeFi include transparency, immutability, programmability with smart contracts and, most importantly, self-custody of funds, meaning that DeFi participants are the sole custodians of their capital and they are not required to rely on centralised crypto exchanges to store their assets.

Thus, given the immense potential that DeFi brought to the space, several projects began experimenting with DeFi functionalities in traditional financial applications, and looked to essentially create a DeFi-TradFi cross-over infrastructure.

In fact, when the Ethereum-based project Compound began offering its decentralised lending and borrowing protocol, it opened the door to a completely new world in Decentralised Finance and attracted large quantities of investors looking to maximise their ROI.

In Mid-2020, Compound Began Distributing Its Native Governance Token COMP As A User Incentive

In June 2020, Compound started to distribute its governance token, COMP, to the protocol’s user base. With the way the distribution process was structured, demand for the token initiated a craze and moved Compound into the leading position in DeFi.

This is primarily due to the fact that this Ethereum-based project allows users to stake and lend their tokens to the Compound protocol and earn interest on their assets for doing so. Consequently, this mechanism ignited a new trend in the DeFi space, and led investors to embark on a journey to find the protocols offering the highest APYs across the industry.

Throughout 2020, A New Craze Emerged In The DeFi Space, Yield Farming

The term Yield Farming was coined as a result of the process of actively searching for the best ROIs in the space whereby users, known as ‘farmers’, are on a constant lookout for the most profitable ‘yields’ in DeFi protocols on mainly Ethereum and the Binance Smart Chain.

How Yield Farming Works

Yield farming, also referred to as liquidity mining, is a way to generate rewards with cryptocurrency holdings. Put simply, it implies locking up crypto assets and receiving staking rewards and interest on those assets. In a sense, the yield farming process resembles that of staking, but with a few extra added complexities.

In most cases, yield farming requires users, called liquidity providers (LPs), to add funds to a protocol’s liquidity pool. Liquidity pools are basically smart contracts that store and preserve users’ funds, and they reward users for providing liquidity in the first place. These rewards may come from fees generated by the underlying DeFi protocol, or from some other sources.

Image via CoinCentral

Some liquidity pools pay their rewards in multiple tokens, and these reward tokens can then be redeployed to other liquidity pools to earn additional rewards there as well. Thus, it is quite simple to see how some incredibly complex farming strategies can emerge from this, but the basic idea is that liquidity providers deposit funds into a liquidity pool and earn rewards in return.

Yield farming is most commonly done with ERC-20 tokens on Ethereum and BEP-20 tokens on BSC, so naturally the rewards are usually in some kind of ERC-20 or BEP-20 format. This, however, may very well change in the near future as yielding protocols develop further and start implementing cross-chain bridges more efficiently.

Yield farmers will typically move their funds around quite a lot between different protocols in search of the highest yields. As a result, DeFi platforms may also provide economic incentives to attract more capital to their platform as in fact, just like on centralised exchanges, more liquidity tends to attract more liquidity.

Getting Started With Yield Farming

Now that we have defined and clarified what yield farming is, let us now discuss how a new user can get started with yield farming.

Yield Farming Strategies Come With A Certain Amount Of Structure And Procedure

Firstly, as a disclaimer, it is only reasonable to list the Pros and Cons that come with a yield farming strategy.

The Pros include:

• dApp Availability: Up to this point, a variety of yield farming-centric applications have come to life, and they give farmers the benefit of tracking their investments and percentage yields from a simple, all-in-one interface.
• Easy and Fast Implementation: To become a yield farmer, one needs only two required elements which are Ethereum, or BNB in some cases, and a crypto wallet. The barrier of entry to yield farming is relatively low, which draws immense attention from crypto investors looking for higher returns on their assets.
• Incredibly High Annual Percentage Yield (APY): While in staking protocols 8-10% APY on stablecoins such as USDT, USDC or DAI is the norm, yield farming can boast as much as 100% APY!

A Visual Of The Annual Percentage Yield On PancakeSwap – Image via PancakeSwap.Finance

The Cons include:

• Short-Term Rewards: It cannot be denied that yield farming is growing strongly in a fast-paced market, but it is still rather unstable so there is a risk of inconsistent returns. More than that, given its ease of entry, profitable strategies are hard to figure out.
• High Gas Fees On Ethereum: Put simply, gas is defined as the fee for each transaction performed within the ETH blockchain. Gas fees have been on a steep uptrend as of late, and this is one of the downsides of yield farming. Thus, farmers should be conscious not to pay gas fees that are higher than the expected reward.
• Benefits For Those With Greater Capital: DeFi allows anyone to participate in yield farming, but the rewards will be considerably higher for those users with a lot of initial capital. This is essentially because the more crypto you own, the more you can deposit in high APY strategies, naturally resulting in a higher ROI.
• Impermanent Loss Risks: This refers to a temporary loss suffered by a liquidity provider (LP) due to the volatility in a trading pair. Impermanent loss is one of the major hurdles of AMM protocols and it occurs when the price of tokens inside an AMM diverge too quickly in any direction, causing a token imbalance.

Yield Farming Platforms

In this section we shall discuss the most reputable yield farming platforms and take you through the process of getting started with yield farming on Ethereum, with Compound and Uniswap, and on the Binance Smart Chain, with PancakeSwap. For simplicity, we have selected these DeFi platforms as they offer perhaps the most straightforward and ready-to-go approach to yield farming.

The Importance Of Total Value Locked (TVL)

Total Value Locked (TVL) is the sum of all funds locked in a protocol’s liquidity pool. This is a very important metric to measure how healthy a yield farming platform is. An increase in the Total Value Locked leads to an increase in the yield farming on a platform. The current TVL for DeFi is approximately $64 billion, and these metrics can be tracked on DeFi Pulse.

Total Value Locked Is A Great Metric To Gain Insight On The Health Of A Farming Platform. Image via DeFiPulse.

As previously mentioned, there are various platforms where you can farm tokens. They all operate in a similar fashion, but the rewards system might be different and specific to the farming platform. Below are some of the yield farming platforms running on the Ethereum blockchain and the Binance Smart Chain (BSC).

Farming On Compound

Compound is an Ethereum-based protocol that allows lending and borrowing of crypto assets. The lender offers a loan by providing liquidity to the Compound platform, and then gets an interest on the loan supplied. The lender’s interest is then calculated based on the ratio of supply and demand for the crypto assets they provide, which may of course fluctuate from time to time.

A Visual Of The Annual Percentage Rates On The Compound Platform – Image via Compound.Finance

Lending capital on DeFi money markets such as Compound and Aave constitutes the easiest way to earn returns in Decentralised Finance. You can deposit stablecoins such as DAI or USDC to either of them and start earning yield instantly!

A Visual Of The APYs On DeFi Platform Aave – Image via Aave.com

Aave generally has better rates than Compound because it gives borrowers the ability to choose a stable rate of interest rather than a fluctuating, variable rate. The stable rate tends to be higher for borrowers than the variable rate, which increases the marginal return for lenders.

However, one of the most appealing additions made by Compound is the new incentive mechanism for farmers through the issuance of its native governance token COMP. In fact, anyone who lends or borrows on the Compound platform can farm a certain amount of the COMP token.

Thus Far, Compound Has Distributed 976,102 COMP Tokens To Farmers And Borrowers – Image via Compound.Finance

At present, 2,312 COMP tokens are distributed daily across the Compound user base meaning that, at approximately $400 per COMP token, this results in more than $920,000 in additional rewards each day. These COMP farming rewards are of course diluted across the platform’s 294,000 suppliers/farmers and 8600 borrowers and, despite the relatively low APYs, the incentive for users to farm on Compound remains incredibly high.

In addition, Compound has its own native interest-bearing tokens called cTokens, which are used to pay farmers for supplying liquidity to the protocol. When farmers provide and lock 5ETH on Compound, for instance, the protocol automatically generates 5cETH tokens, that earn farmers interest and can be redeployed on other DeFi platforms as well. Farmers can then redeem their cETH for ETH at any time, plus their staking rewards.

To participate in yield farming on Compound, as well as most other farming platforms, users will need to:

• Acquire crypto that is used on the particular farming platform. Widely accepted crypto assets are ETH, BTC, and stablecoins such as DAI, USDT, USDC and BUSD (for BSC farming).
• Download a decentralised wallet such as Metamask, Trustwallet or Wallet Connect. Register as prompted, and make sure that private keys and the seed phrase are secure and kept somewhere safe. You may follow Guy’s step-by-step guide on how to do this.
• After installing the preferred wallet, send funds to the wallet.
• Go to the dApp section of the wallet to start farming.
• For beginner farmers, it is advisable to start farming with the Compound platform because of the COMP incentive and its ease of use.

In Compound’s case, users looking to farm should:

• Go To Compound.Finance
• Click on ‘App’.

Image via Compound.Finance

• Connect Wallet through the Metamask icon.

Image via Compound.Finance

• Approve Connection Via Password and Unlock Wallet.

Image via Compound.Finance

• Once the connection is approved, users can choose from a selection of assets that they want to supply in order to start farming COMP.

A Visual Of The Compound Supply Market – Image via Compound.Finance

• If users want to supply the platform with a stablecoin such as DAI, for example, they will need to first click ‘Collateral’ and then ‘Use DAI As Collateral’.

Image via Compound.Finance

• Users will then need to enable DAI as collateral and pay a small ETH transaction fee.
  Once the transaction is executed, users will be able to deposit their DAI into the Compound platform and start farming COMP. The User’s APY will be displayed in the ‘Dashboard’ section together with their ‘Supply Balance’ and their ‘Interest earned and paid, plus COMP’.

Image via – DataDrivenInvestor

It is also important to note that the more assets a farmer supplies, the more potential borrowing power they have. Using the image above as an example, a user could provide liquidity with 1,237 DAI and potentially borrow $928. In this scenario, DAI would be held by Compound as collateral, and the user could borrow $928 for additional farming on other DeFi protocols, for instance.

Farming On Uniswap

Uniswap, one of the most well-established Ethereum-based AMM protocols in the space, is arguably the largest liquidity pool in DeFi. Uniswap allows Liquidity Providers (LPs) to earn fees as a reward for adding their capital to a pool. On Uniswap, liquidity pools are structured between two assets in a 50-50 ratio, a model typical of Automated Market Makers (AMMs).

Uniswap, A Sophisticated Decentralised Trading Protocol

LPs are of vital importance to Uniswap’s functionality as a DEX, as they provide the liquidity and collateral necessary for the protocol to execute trades in a decentralised manner. In fact, every time someone executes a trade through a liquidity pool, LPs that contributed to that pool earn a fee for facilitating the transaction. The exchange has a trading fee of 0.30% for every token swap but, instead of going to Uniswap, these fees are given to Liquidity Providers as a reward for providing capital.

Adding Liquidity On Uniswap v.3

Unlike most DEXes, Uniswap doesn’t contain order books and its liquidity is maintained through liquidity pools. This means that anyone can become a liquidity provider (LP) for a token pair on Uniswap by simply depositing equal amounts of each token in exchange for token pools. For instance, if a user wanted to add liquidity to an ETH-DAI pool on Uniswap, they would have to add the exact same amount of each token.

Visual Of The Uniswap Liquidity Pool Structure – Image via Uniswap.org

Currently, at the time of writing, 1 ETH equates to approximately 2,270 DAI. So, if the LP wanted to provide liquidity to the pool with say 3 ETH, the necessary 50-50 ratio would look something like 3 ETH – 6,810 DAI.

To add liquidity to a Uniswap pool and start yield farming on the platform, users will need to:

• Go To Uniswap.org.
• Click ‘Launch App’.

Click On ‘Launch App’ In The Top Right Corner – Image via Uniswap.org

• Click ‘Pool’.

Image via Uniswap.org

• Click ‘Connect Wallet’ to connect with Metamask.
• Once connected, users can either browse through popular liquidity pools by clicking on ‘Top Pools’, or click on ‘New Position’.

Top Pools On Uniswap – Image via Uniswap.org

• After having clicked on ‘New Position’, LPs can select their preferred token pair.

Select Token Pair – Image via Help.Uniswap.Org

• They must then review their preferred Fee Tier.

Review Fee Tier – Image via Help.Uniswap.Org

It is important to note that Uniswap v.3 offers 3 different Fee Tiers for every token pair: 0.05%, 0.3% and 1.0%. The 0.05% Fee Tier is ideal for assets that trade at a fixed or highly correlated rate, such as stablecoins. Thus, this Fee Tier is most suitable for liquidity pools such as DAI-USDC or USDC-USDT, for instance.

The 0.3% Fee Tier is best for most pairs, and the ones that undergo price fluctuations, such as ETH-DAI for example. This higher Fee Tier is more likely to compensate LPs for the greater price risk that they take on relative to stablecoin LPs. The 1.0% Fee Tier is primarily used for exotic pairs, and it is implemented to reward LPs for taking on major price risks on their assets.

• Set Price Range

Set Price Range – Image via Help.Uniswap.Org

Uniswap v.3 allows LPs to select a specific price range in which they can provide liquidity, which is one of the perks of the recent Uniswap upgrade. This means that if prices move outside the selected range, the user’s position will be concentrated in one of the two assets and will not earn any interest until prices come back into the range.

Deposit Tokens – Image via Help.Uniswap.Org

• Deposit the desired token amounts.

Preview And Approve Transaction – Image via Help.Uniswap.Org

• ‘Add‘, ‘Preview‘ and Approve Transaction on Metamask

Farming On BSC: PancakeSwap

Launched in September 2020, PancakeSwap is a Binance Smart Chain-based DEX and AMM protocol running primarily on smart contracts and permissionless liquidity pools. Similarly to Uniswap, PancakeSwap allows any two tokens to be exchanged, but with a few extra gamified additions.

PancakeSwap, The Go-To DEX On The Binance Smart Chain

The Binance Smart Chain has grown exponentially over the course of the last year, as investors, traders and yield farmers started to accumulatively reject the inefficiencies of the clogged-up Ethereum blockchain, and looked to more sustainable DeFi options. BSC is fast, cheap and easy to use, and its community is one of the strongest in the DeFi space.

The Binance Smart Chain Ecosystem Has Grown Exponentially Throughout 2020 And 2021 – Image via Binance Blog 

Let us now discuss how you can get started with yield farming on PancakeSwap and also farm its native token CAKE. To farm on PancakeSwap, users will need to:

• First create a BSC compatible wallet, such as Metamask or Trustwallet.
• Purchase some BNB tokens and send funds to the BSC compatible wallet. It is important to note that native BNB purchased on centralised exchanges cannot be utilised for DeFi applications on BSC. To yield farm on PancakeSwap, users will need to convert their native BNB tokens into BEP-20 BNB. This can be done directly on the Binance centralised exchange through the Binance Bridge or, alternatively, on Trustwallet.
• Head over to PancakeSwap.Finance. Once there, users will encounter various tabs such as Trade, Farms, Pools, Lottery and Collectibles. The Trade tab allows users to swap between tokens on the Binance Smart Chain mainnet, and constitutes the heart and soul of the PancakeSwap DEX.

Contributing To The CAKE-BNB Liquidity Pool

If farmers want to provide liquidity to the CAKE-BNB liquidity pool, the first thing they will need to do is acquire an equal value amount of CAKE and BNB tokens, which they can purchase on Binance first and then send to their Metamask wallet. It is also important to remember that, similarly to Uniswap, PancakeSwap utilises a 50-50 token ration in liquidity provision in order to maintain funds balanced and incentivise trading.

A List Of The Active Farms On PancakeSwap – Image via PancakeSwap.Finance

Users will then need to interface their Metamask wallet with the PancakeSwap platform by clicking on ‘Connect’ in the top right corner. Once they’ve successfully connected Metamask with PancakeSwap, they can head over to ‘Farms’, click on CAKE-BNB liquidity pool and then ‘Enable Farm’.

The CAKE-BNB Liquidity Pool On PancakeSwap Currently Offers 52.72% APR! – Image via PancakeSwap.Finance

In order to enable a farm, PancakeSwap charges a very small transaction fee, currently around $0.07, which users will need to pay in BNB token. After having completed and signed the transaction on Metamask, the option to add liquidity to the farm becomes open.

Alternatively, farmers can head over to the ‘Trade’ tab, then click ‘Liquidity’, ‘Add Liquidity’ and select their desired input tokens, in this case CAKE and BNB.

Just Like On Uniswap, LPs Need To Provide A Pair Of Tokens Due To The 50-50 AMM Structure – Image via PancakeSwap.Finance

• Add liquidity in the amount you want to contribute, but you can also use the ‘Max’ button to contribute up to your maximum in your wallet.
• Then Click ‘Supply’ and pay the liquidity provision transaction fee on Metamask with BNB, which will be considerably lower than Uniswap on the Ethereum network.

In return for supplying liquidity, you’ll receive CAKE-BNB LP tokens which represent your share of the liquidity pool. These LP tokens are interest-bearing tokens and they allow LPs to earn rewards every time a trade is executed through that liquidity pool.

What Next?

Once you receive your LP tokens, you may head over to ‘Farms’ and redeploy your LP capital through staking. The process of doing so is exactly the same as the one mentioned above.

• Click on ‘Stake LP’ and approve your LP tokens for staking.

Once You Have Your LP Tokens, You Can Redeploy Them In LP Staking Through ‘Farms’ – Image via StakingBits Medium

Once the transaction has been approved and the LP tokens are inserted into the PancakeSwap smart contract for staking, you will essentially start earning CAKE immediately. Farming on PancakeSwap can be incredibly beneficial for investors as it allows them to generate yield while maintaining their position open on their assets.

It is clear that farming offers some inherently optimal ways for crypto investors to yield high returns on their investment, as we have seen with the CAKE-BNB liquidity pool. Therefore, because of its qualities and growing adoption across the space, yield farming is proving to be quite the innovation in the DeFi ecosystem and is set to potentially revolutionise the way crypto enthusiasts, investors and traders will HODL their assets from now on.

In Conclusion

Yield farming is one of the newer trends to come out of DeFi technology, and it is slowly establishing itself as a true powerhouse in the space. Yield farming entails the process of actively searching for the best APYs and moving assets across the ecosystem to essentially ‘farm’ the best crops and yield the highest returns.

Originally, the concept for yield farming started when Ethereum-based DeFi project Compound began incentivising participants to use its platform in return for its native governance token COMP. To this day, Compound is still distributing COMP tokens to anyone who lends and borrows crypto assets through the platform.

The COMP incentive, paired with the possibility to farm native tokens just by using the platform, spearheaded a craze across the digital asset space and inspired users to come up with intricate strategies to move assets around and look for the most profitable crops to farm.

Yield farming as a procedure is rather straightforward and requires users to hold crypto assets relevant to the specific farming platform, a decentralised wallet such as Metamask, and the will to make some serious gains in a relatively short amount of time.

If you’re just starting out with yield farming, Compound is perhaps the best solution for you. Once you’ve developed your skillset further, you can then start farming on protocols such as Uniswap, on Ethereum, and PancakeSwap, on the Binance Smart Chain.

A yield farmer’s gains can be very enticing indeed, however, it is advisable to always exercise caution and understand the risks prior to engaging in the intricate, fast-paced and highly profitable DeFi segment that is yield farming.

The post Getting Starting with Yield Farming: The ONLY Guide you Need appeared first on Coin Bureau.

Even losing access to your social media accounts could be quite upsetting, but imagine if bad actors got access to the passwords you use for your wallets or exchanges. That could be a tragedy!

Managing all those passwords manually is certainly a possibility, but its time consuming. Plus having a document with all your passwords on your computer, or even as a hard copy on paper, is less than secure. That’s why more and more people are turning to password management tools to help. And as you’ll find out, some of these tools have other benefits aside from simply storing your passwords.

Time to put the paper and pen away for managing passwords in the 21st century.

In the following guide you can learn all the potential benefits of a password management tool, and which tools available in 2021 are best for your needs.

What is a Password Manager?

As I already mentioned above, it’s not advisable to use the same, or even similar, passwords across all your accounts. But it’s virtually impossible for anyone to remember all the different passwords they need to secure all the different online accounts they have. Compounding the issue is that some sites will lock you out if you type in an incorrect password too many times. And some wallets and other crypto tools have no password recovery feature, making it impossible to get into those accounts if you ever lose or forget your password.

Password management tools come to the rescue by storing passwords so that users can easily access them, even across multiple devices. Password managers come as both desktop and mobile applications, and in both cases they store your login information, and when you navigate to a website that requires a login they will automatically fill in the details based on the stored information.

A password manager can help make your life much easier.

There are two major benefits to this. The obvious benefit is that the password manager software makes it unnecessary for you to remember all of your passwords. You are freed up to set passwords that are extremely complex and random, and not have to worry that you’ll later forget the password. The second benefit is that since you don’t need to manually type the password (or username) into any form there’s no way for keyloggers or other malicious software to spy on you.

Password Management Security Risks

I know at this point you’re probably thinking that trusting your passwords to a third party is going to be dangerous as well. However the login information and any personal details stored by password management tools are encrypted and stored locally on your hardware, or securely via cloud storage.

Access to the password management tool itself is controlled through a Master Password. This is the password used to access all the other passwords, and without it they are inaccessible and unable to be decrypted. The only person who has the Master Password is the application user. So even if hackers were able to get into the central servers of the password management company, they would still be unable to access any of the passwords stored by users.

Password management tools take steps to protect you from this guy.

In addition, the Master Password is useless by itself. This is similar to the way 2-factor authentication requires an external verification to permit access to an account.

So basically while there is of course some degree of risk in using a password manager, there’s just as much or more risk in storing your own passwords either physically or digitally on your computer.

Why Use a Password Manager?

The best password management tools will sync between multiple devices. This makes the current generation of password managers far more efficient and useful than past generations. With this feature you are able to easily access your accounts from any of your devices, whether at home, at work, or on your mobile device.

The tool is also a time saver, since you’re no longer required to type your login information every time you need to access an account. While this might not seem a big deal for each individual login, when you combine all the times you log in to various accounts in the course of a month this can add up to some serious time savings.

The best tools also feature encryption to secure your data. So, let’s have a look at which password management tools are best in 2021.

1. LastPass

LastPass is considered to be the gold standard in password management tools by many people. It’s certainly one of the most recognizable brands in the space, and is one of the most widely used password management tools. In fact, you’ll be hard pressed to find another password manager with a reputation better than LastPass. But does that mean it’s the best?

LastPass can store and protect passwords for all your accounts. Image via LastPass.com

The truth of the matter is that users seem to be deeply divided with this product. Once you sign up and begin using LastPass it seems like you’ll either love it, or you’ll hate it. There’s little middle ground among users. It’s kind of like the Apple of password management.

As LastPass became increasingly popular it also faced an increasing amount of competition. That hasn’t stopped users of LastPass from hanging onto their free accounts because they love the platform. Even the paid accounts run just $36 a year, or $3 a month, and the paid version comes with a number of add-ons. But even without the add-ons the basic account has so much included. Most importantly, it will store all your passwords across multiple platforms and devices. It’s a perfect solution for both personal use and business use.

Not only can you store basic account passwords with LastPass, you can also store Wi-Fi passwords and digital records of important documents like your passport or membership contracts, and share them with others easily.

Let LastPass generate secure passwords for you. Image via LastPass.com

LastPass has its own built-in password generator, which can create long, complex, randomized passwords to thwart hackers. And while it does have standalone apps for Windows and MacOS devices, it is most frequently used as a web browser extension. Plus there are situations where you can even use it offline.

The lynchpin to the functionality of LastPass is the Master Password. This one, single password secures the LastPass vault, keeping all other passwords encrypted and secure. Having this Master Password makes life so much easier than having to remember dozens of passwords. You can use the Master Password to access your LastPass password vault online with a browser extension, through the mobile app on your mobile device, or if you’re a premium user through the Windows desktop app. The stored data will be used to automatically fill in the login forms or you can access the passwords to copy/paste whenever needed.

Another great feature of LastPass is its multifactor authentication. This added layer of security requires you to enter a code delivered via the LastPass MFA app. The app supports 6-digit generated passcodes, SMS codes, and automated push notifications for one-tap login. Multifactor authentication adds another layer of security to the password management tool, and keeps your Lastpass account secure from hackers, keyloggers, data breaches, and other online threats.

All the features you need from a password management tool. Image via FastPass.com

Added security comes from the Dark Web monitor included with each paid LastPass account. Simply turn on monitoring for all the email addresses you want LastPass to keep an eye on. Then any time a monitored address is detected in the database of breached credentials you’ll receive an email from LastPass letting you know about it. Finally, take action to protect any account compromised in a breach. Change your password to ensure peace of mind.

According to the LastPass website there are more than 25 million users of its password management tool, with roughly 70,000 of them being businesses. LastPass has a number of features that allow managers to customize the app for their particular business needs. This flexibility is likely part of the reason for the strong adoption of LastPass, along with the support for so many devices.

Over 25 million users is a strong testimony. Image via LastPass.com

If all this sounds good to you then give LastPass a try with their free account level. You might find that you love the service, or you might find it isn’t really right for you. Either way you won’t know for sure until you give it a try.

2. Dashlane

Dashlane comes with a basic free password management tool that anyone can use, but like the other password managers it also has several tiers of paid, premium account options that are definitely worth paying a little bit extra. The bonus features in these paid tiers are excellent additions.

Dashlane makes the internet easier. Image via Dashlane.com

That said, the free version is still a great choice if you are only looking for the basic login and payment autofill capabilities, along with two-factor authentication. The downsides to the free plan are a limit on the number of passwords you can store – 50 – and the restriction of only allowing one device.

However by upgrading to one of the premium accounts (starts at $2.99/mo) you also upgrade your password storage to infinite, and you can then synch all those passwords across multiple devices. And there’s more too.

Dashlane is the industry leader in password security, and it has a number of patents to prove that this is the case. Paid members get access to dark web monitoring that alerts regarding potential online hacks and data breaches. And Dashlane will also give them guided steps on how to take action when a hack or breach does occur.

Find out if you’ve been compromised with a free Darkweb Scan. Image via Dashlane.com

Dashlane is also unique in offering a secure VPN feature. This is an excellent addition to the service in terms of privacy, and is also helpful for those who often find themselves connected to public Wi-Fi hotspots.

Users will also be glad to see that one of the main tenets of the Dashlane firm is a commitment to privacy. The company is fully transparent in that they do not share any of their customer’s data. And in terms of storage there’s nothing for them to see, even if they wanted to.

Some Positive Reviews of the Manager

And Dashlane has a reputation within the industry as being one of the best password management tools due to the combination of powerful security and a simple user interface. It’s a top choice for those new to password management and private storage services. If you are new to this type of service then Dashlane might be a good place to start.

3. KeePass

If the best in security and a solid reputation are high on your list of requirements for a password management tool, then KeePass is definitely worth your time. While the website looks like it was made in decades past, the software is cutting edge for the 21^st century. That’s why so many people have made it their go-to password manager and storage solution.

The website is old school, but the secure password management is 21st century. Image via KeePass.info

One thing you will find with KeePass is that just like its competitor LastPass, it seems to be extremely polarizing. In reviews users either love it and can’t live without it, or they really despise it. Chances are if what you want is a simple, solid, no-frills way to store passwords and other data you’ll really appreciate what KeePass has to offer.

And simple doesn’t mean there isn’t something special to offer from KeePass. Users who are trying to avoid cloud-based solutions will really appreciate the customizable, offline approach of KeePass for password management.

KeePass comes with a randomized password generator, an extensive plug-in architecture, and support for a number of languages. Another nice feature is the portability of KeePass, which allows it to be carried on a USD stick and run on Windows systems without being installed.

KeePass is extremely configurable. Image via KeePass.info

While the website for KeePass looks outdated, the actual product has frequent updates and uses all the best modern encryption and security to keep your passwords secure. And the simplicity seen on the website is mirrored in the simplicity of the product itself, making KeePass a straight-forward solution for password management.

4. 1Password

1Password has been called the most loved password manager in the world, and just taking into account the trusted reputation and solid brand within the industry one could imagine why. But once you start using it and find out how great it is for managing all your passwords you really begin to see why so many users love the 1Password experience.

Loads of love for the 1Password tool. Image via 1Password.com

1Password has plenty of positive features. It’s simple to use, and you’re able to store and use strong passwords, logging into sites with a single click.

1Password is primarily an offline desktop management password tool, however it is possible to manually upload all your passwords to the cloud, or to sync them to other devices using Wi-Fi or a USB drive. Of course you’ll find all the same standard features found on all the best password managers. That includes the aforementioned one-click login and autofilling of forms. It also comes with protected privacy settings and alerts for data breaches or online hacking that might have exposed any user accounts.

You’ll find the free service to work great and do exactly what you need in terms of password management. However there are additional features that can be unlocked with the paid version (starting at $2.99/mo) of 1Password.

1Password is chock full of features. Image via 1Password.com

One of these is the family version, which offers password protection for an entire family (up to 5 individuals) for just $4.99/mo. Additional members can be added too for an extra $1/mo. 1Password automatically signs you into each family member’s favorite websites with a single click while protecting valuable passwords, credit cards, and anything else that’s too personal to text or email.

You don’t have to worry about family members snooping into your online accounts either, because each family member gets a personal vault that’s unique and separate from the others.

There are also small business plans that can help to provide security and peace of mind for business owners. These business plans start at $7.99/mo per user, but with the added security from 1Password, their 24/7 customer support, and protection from hacking and online data breaches this fee seems extremely affordable.

Despite all the love given to 1Password there are some complaints about the service. The chief of these is that 1Password doesn’t rely on 2-factor authentication like other password management tools. Instead users need to work a little bit harder.

1Password provides strong password protection. Image via 1Password.com

One example of this is when signing into your 1Password account on a new device. When you do this you’re required to enter the master password for the account and a code that’s sent to a device that you’ve previously used with 1Password. If you don’t have access to that previously used device 1Password instead sends a long, complicated code to get you into your account. It’s not convenient for sure, but it is extremely secure.

Aside from that inconvenience 1Password has you covered. Whatever you need from your password manager is available with 1Password. This applies for individuals, business users, and families. No matter what type of user you are 1Password has your back.

5. RoboForm

If you want the latest, sleek user interface for your password manager, then RoboForm might not be your best choice, however for security and a solid reputation then RoboForm is exactly what you need. RoboForm has always been and remains a versatile password management tool that has powerful built-in features and plug-ins for tons of browsers. And the RoboForm users are unanimous in their loyalty for the product, with some being users for over 2 decades!

One of the oldest, most trusted password management tools available. Image via RoboForm.com

You see, RoboForm was one of the first password management tools, released all the way back in 1999, long before cryptocurrencies and blockchain technology were even considered as a means for decentralization of finance.

RoboForm is among the oldest password management tools that are still operational and there’s a very good reason for that. It works just as advertised. Even with all the advancements made in password manager software over the past 2 decades RoboForm remains very true to its roots. It’s made few changes and hasn’t attempted to keep up with current trends. It hasn’t needed to because it was made strong and remains that way, with an extremely loyal user base who wouldn’t even consider switching to one of the newer password management tools.

You see, the key to RoboForm is its simplicity. I can attest to that because I was one of those original users back in 1999. And RoboForm remains so simple and easy to use I still recognize it today. There’s a standalone desktop version, and a premium version (starting at $1.99/mo) that allows for cross-platform functionality.

You’ll find the basic RoboForm premium options are very affordable and come with adequate additional features, including multi-factor authentications and dedicated, priority support from their customer service team––24 hours a day, 7 days a week.

RoboForm’s Security Center keeps you safe. Image via RoboForm.com

Yes, you could have a modern-looking interface and all the bells and whistles from other password managers, but the simple truth is that RoboForm gets the job done.

6. Bitwarden

Bitwarden gives users enterprise level security in an open-source password management solution. And with support for pretty much any device or browser you’ll never be stuck without access to your Bitwarden account and your passwords. All of this makes Bitwarden one of the most reliable and highly trusted solutions available. Plus it’s easy to use, and it has a tone of features.

Trusted open-source password management tool. Image via Bitwarden.com

Accessibility is one of the most important priorities for Bitwarden and is definitely delivers. Plus its security remains intact across all the platforms it supports. And it allows for synching across multiple devices for businesses and teams, along with an Admin Password Reset feature.

In addition it also provides unlimited online storage, and the ability to self-host the software and password database. And of course the basic account is always free. Even the premium account starts at under $1 a month ($10/yr). Premium accounts include features like a password health report that will let you know if some of your passwords are too weak, and priority customer support when needed. Of course with the solid attention Bitwarden gives to data encryption and security you won’t be likely to ever need that customer support.

Security is a top priority. Image via Bitwarden.com

While Bitwarden has a fantastic reputation, and many users appreciate that it is open-source, some of you might want more power than you can get from a free password management tool. However Bitwarden is an excellent choice for those who want a free solution, or for those new to password management software.

Conclusion

That’s six of the best password management tools available in 2021. They all offer free versions if you only need some basic functionality, or upgraded premium versions with enhanced functionality for just a few dollars a month. There’s something for everyone, whether you’re just getting started with password management software, or you’re an expert user.

Now that you know the differences between each of them you should be able to make a better informed decision on which would best suit your needs. If you’re undecided still between two of them we recommend you give the free version of each a try and see.

The post The 6 Best Password Management Tools appeared first on Coin Bureau.

Granted it’s a fairly large divide still between cryptocurrency owners and stock owners, but we also have to keep in mind that cryptocurrencies have been around for just a dozen years, while stocks have been around since 1611, or for more than 400 years. I think cryptocurrencies will catch up to stocks over the coming 400 years!

In terms of tradable opportunities there are now more than 10,000 different cryptocurrencies according to Coinmarketcap.com. Some are huge, like Bitcoin, Ethereum, and Binance Coin, while others are so small that they have under $1 million in daily trading activity.

While some people are investing purely to speculate, others look at cryptos as a way to store value or hedge against inflation. The following guide will talk about how to invest in crypto in 2022, whether you should start investing, and what to know before you jump into this new opportunity.

Prepare for Volatility and Risk

I think it’s pretty well known that cryptocurrency investing and volatility go hand in hand. While the larger coins like Bitcoin and Ethereum have calmed down to some extent, moves of 10% are still not unusual. However smaller tokens can move that much and more day after day, and those moves can come in either direction. That makes it crucial to learn as much as possible about any token and its underlying project before investing.

In fact, the more you understand, the better investing decisions and choices you’ll be able to make. For example, some investors approach Bitcoin in much the same way they approach gold. They see it as a store of value, and as a way to hedge against inflation. That’s why Bitcoin has picked up the names “digital gold” and “gold 2.0”.

Ethereum is a different story, with investors attracted to the second largest cryptocurrency based on its utility and use in smart contracts and decentralized finance.

Cryptocurrencies are considered an alternative asset, a group that also includes real estate and commodities, because they are a way to diversify out of traditional assets like stocks and bonds. While they are great at providing diversification cryptocurrencies also remain quite volatile, and can even be influenced by news items and comments from popular personalities.

The good news is that despite the volatility, over the long-term Bitcoin has an average annualized return that’s greater than 200%. So embracing volatility can lead to impressive gains.

How to Invest in Cryptocurrencies in 2022

Cryptocurrency investing saw increased adoption in 2021, however it remains an option that’s not available from traditional stock broker – yet. Until it is investors need to become familiar with the various types of cryptocurrency brokers and exchanges that can help them get started in this new asset class. Those include the centralized brokers like Coinbase, the centralized exchanges like Binance and FTX, and the decentralized exchanges like Uniswap.

In addition to the buying and selling of cryptocurrencies there are other ways to invest too, and that means getting to know about staking, yield farming, crypto lending platforms, and even non-fungible token platforms.

Three Investing Principles to Keep in Mind

These three principles below might not seem new to experienced investors, but they are just as relevant in cryptocurrency investing in 2022 as they are for any other investment classes. If you take nothing else away from this article at least try to remember these three things:

1: Never invest what you can’t lose.

When you first start investing it can be very exciting, and even addictive for some. This can be especially true if your first purchases occur during a bull run, when everything is heading massively higher. You might think things will be like that always, and that can lead to over committing yourself and your capital.

Experienced investors know that there is always an element of risk in any investment. While some do have lower risks, the cryptocurrency class has some of the highest risks you’ll find. That means cryptocurrency investing should be approached carefully. Start with small amounts and grow your account slowly. And most importantly don’t use money you need for rent, food, or other necessities.

For some reason there are those who feel like they need to purchase 1 BTC or 1 ETH. This simply isn’t true. You can get started with cryptocurrency investing using as little as $10. Brokers and exchanges will let you purchase just 1 satoshi, which is the smallest fraction of Bitcoin and is equal to just one hundred millionth of a single bitcoin (0.00000001 BTC).

Start small and slowly build up your crypto portfolio over time is the prudent course.

2: Invest in alignment with your own interests and values.

There are many ways to invest, from stocks to real estate and of course cryptocurrencies. Some people would never consider investing in real estate, others try to avoid investing in certain classes of stocks, such as energy or tobacco companies. And still others will likely want to avoid cryptocurrencies, no matter how large the market grows.

Everyone should only invest in those assets that align well with their own values, beliefs, and interests. If you believe cryptocurrencies are the future of money, or that blockchain is the future of many types of technologies, then cryptocurrencies are an ideal investment opportunity. However if you question the value and utility of cryptocurrencies and blockchain technology then it might be best to avoid the asset class altogether and focus on investments that are better aligned with your own ideals.

3: Follow a Core-Satellite Strategy

Diversification is a key to investing, but to meet your investing goals you should have a focus to your portfolio. This is accomplished by using a core investment and a group of smaller satellite investments. Your cryptocurrency investments will likely by a satellite to your overall investing strategy, but within that you can also have a core to your crypto investments, surrounded by satellite tokens or coins. The majority of your capital in allocated to the core.

For your crypto portfolio you will want to choose one of the top ten cryptocurrencies as the core. These are proven, and while still volatile they will be more stable than new projects. You might choose Bitcoin, Ethereum, or something like Ripple as your core. Your satellites will be smaller projects, or those cryptocurrencies you aren’t as confident in quite yet. Think of the satellites as more speculative investments.

It’s key that you identify your core and your satellites, and don’t confuse the two. Once you’re comfortable that you understand these three principles of investing in cryptocurrencies you’ll be able to choose the cryptocurrencies you want to invest in with confidence.

Bitcoin Remains Dominant in 2022

Historically the largest cryptocurrency by market cap has been Bitcoin, and that continues to be the case in 2022. That’s why it is the most talked about cryptocurrency, and the cryptocurrency that attracts the most investment capital. Bitcoin dominance in January 2022 is over 40% of the total market. In a far second place is Ethereum, which has a market domination of just over 18%. Then there are others such as Binance Coin, Ripple, and Cardano.

Given its dominant position and longevity Bitcoin is currently the most reliable cryptocurrency for creating a core position. That said, Ethereum has performed better in 2021, albeit with more volatility as well. And some smaller cryptocurrencies have done even better. That’s why we recommend a diversified crypto portfolio.

Either Bitcoin or Ethereum would work well as a core, with smaller cryptocurrencies making up the satellite positions in your portfolio.

Keep in mind too that the broader market often takes its lead from Bitcoin. So when Bitcoin is rising the rest of the market also tends to do well. And when Bitcoin is falling the rest of the market tends to follow it lower. Consider Bitcoin as the core and all other cryptocurrencies as more speculative in nature and you will have a good start to a cryptocurrency portfolio in 2022.

These facts and tendencies should not be underestimated. Also note that many of the cryptocurrencies introduced since 2009 have disappeared. That means any smaller project you invest in could disappear, leaving you with nothing. And that could happen very quickly, due to the inherent volatility of cryptocurrencies.

Next Steps in Cryptocurrency Investing in 2022

Once you know how you want to build your portfolio (which coins and the amounts), it’s time to find a suitable cryptocurrency exchange.

There are quite a few, and you’ll also want to decide if you’re going to use a broker (Coinbase is the largest) or a true exchange (Binance is the largest here). The benefit of the larger brokers and exchanges is that they have more coins listed to choose from, plus they are more liquid and more stable. And these larger brokers and exchanges will also support staking, which allows you to generate passive income from your cryptocurrency holdings.

After you’ve made your choice of broker or exchange the next step is to create an account, complete the identity verification requirements (if necessary), and fund the account with some fiat currency. Remember that it isn’t necessary to buy an entire coin! If you only have $100 you can buy just that amount. Do watch out for the transaction fees however as they have become quite high in 2021 for many cryptocurrencies, including Bitcoin and Ethereum.

HODL in 2022

HODL is a term used in cryptocurrency that is an acronym for “Hold on for Dear Life”. It came about in the early days of cryptocurrency, when someone in a forum misspelled “hold” and has caught on as a defining term for the cryptocurrency markets.

Learning patience and the power of hodling in 2022 can be key to your investing strategy. Prices can move 20% or more in a single day, and in either direction. Prices could drop for an extended period of time. For example, Bitcoin hit a high of nearly $20,000 in December 2017, but a year later was trading under $3,500. Many people lost a lot of money by selling during this time, and it was needless because in April 2021 Bitcoin hit a new all-time high of nearly $65,000. Hodling could have saved them from losses and given them a massive profit instead.

Consider too those who might have bought Bitcoin early in 2020 when it was trading around $9,000. Because of the COVID-19 pandemic the price lost nearly 50% by March 2020, however as we know 2021 saw a massive rally in Bitcoin that saw prices go from the $5,000 level in March 2020 to almost $69,000 slightly over a year later. An investor might have sold at $10,000 or even $20,000 for an impressive gain, but it would have been peanuts compared to what they could have made.

Beyond Buying Bitcoin in 2022

Buying and hodling Bitcoin (or Ethereum) will very likely be the core of your cryptocurrency investments, but as mentioned already you should also consider adding some smaller satellite positions. One way to supercharge your returns even more is to choose some of the staking coins as part of your holdings.

Consider Staking

Cryptocurrency staking is the processes of locking coins in a wallet and receiving rewards in return. These can be thought of as equivalent to the dividends you might earn from holding certain stocks. Whereas the stock dividends come from company earnings, the staking rewards from cryptocurrencies come from the transaction fees generated by the network, or from a pool that was created for the purpose of providing staking rewards.

Staking also provides value to the blockchain by securing the network against attacks, and as a way to verify transactions.

As a crypto investor staking provides you with the means to generate passive income from your crypto portfolio. And the more cryptocurrency you hold, the greater your staking rewards become. It’s a great way to supplement your investing capital.

Popular Staking Coins in 2022

As you already know there are many different cryptocurrencies, and there are also many different cryptocurrencies that can be staked to earn yield. While the list below is far from exhaustive, it will give you a starting point in your research for good staking coins in 2022:

Cardano (ADA) – Cardano was created by one of the founders of Ethereum who was frustrated at the slow pace of development of Ethereum back in 2016. Cardano is also unique in that all its technology goes through a peer review process prior to being implemented. In July 2021 Cardano staking yields roughly 6.5% APY.

Ethereum 2.0 (ETH) – Technically Ethereum is not yet a proof-of-stake blockchain, but that change is expected to occur in late 2021 or early 2022. In the meantime it is still possible to stake Ethereum, but any rewards can’t be withdrawn until the blockchain officially switches to proof-of stake. Ethereum is yielding around 6.1% APY as of July 2021.

Polkadot (DOT) – Polkadot facilitates the cross-chain transfer of any data or asset types, not only cryptocurrencies. This achieves blockchain interoperability, which makny believe will be one of the keys to blockchain adoption in the future. Polkadot is yielding roughly 13.3% APY as f July 2021.

Binance Coin (BNB) – This coin was created as a dedicated utility token for the Binance exchange and ecosystem. Since then it has caught the attention of speculators, making it the fourth largest cryptocurrency. As a staking coin it yields 9.6% APY as of July 2021.

Where to Stake Crypto

There are a number of ways and methods to stake cryptocurrencies. Some require you to hold them in a specific wallet, while others have minimum staking requirements that make it more feasible for most users to delegate their tokens to an actual node operator. And many are now supported by the various centralized cryptocurrency exchanges, with yield being paid out simply by holding the tokens in an exchange wallet.

In addition there are new services that have been created specifically to allow users to deposit and stake. These services specialize in staking rather than exchanging or brokering. They include Staked and Stake Capital.

It’s worth noting that you’re going to find different terms, requirements, fees, and rules at the different staking platforms. It’s worth your time to examine these at the various places where staking is support in order to be sure you’re getting the best deal, and that your goals align with the offerings of the service.

Crypto Lending for Yield

Do you know where to find the best cryptocurrency interest rates?

As DeFi and CeFi applications continue growing and expanding, adding lending services, staking services, margin exchanges and more over the past few years it is becoming increasingly difficult to determine where investors can find the best yields for their idle capital. Answering the question of which platform has the best yields and interest rates is difficult as the rates are a moving target. Instead it’s best to look at each and see how an investor might benefit from adding that service of protocol to their portfolio.

DeFi Lending

DeFi lending was created as a way to provide margin to traders on decentralized exchanges and for a way to borrow through DeFi applications. However it’s important to understand that the supply and demand from these applications make yields for DeFi lending fairly volatile. In addition, because the majority of applications run on the Ethereum network the majority of borrowing and lending is with Ethereum, ERC-20 tokens, or wrapped tokens.

Popular DeFi lending platforms include:

Compound – A DeFi platform for tokenized lending and collateralized borrowing.

Cream – A lending platform based on Compound Finance.

dYdX – A DeFi platform for collateralized borrowing, lending, and margin trading.

AAVE – Aave is a DeFi platform for collateralized borrowing and lending.

Centralized Lending

While decentralized lending has taken the spotlight recently, there are also a good number of centralized crypto lending platforms that investors can access. While you give up decentralization with these platforms you typically gain more stable interest rates since the lender is setting the rates rather than relying on pure market forces. Investors will also find that interest rates on the centralized platforms are typically higher than those on decentralized platforms.

Popular CeFi lending platforms include:

• NEXO
• Block-Fi
• Celsius
• com
• Hodlnaut

Yield Optimization Platforms

If searching through the lending platforms to find the best yield seems like a thankless task to you, then why not give it up and let a yield optimization platform handle the heavy lifting. Thanks to the innovations brought about by Yearn.Finance investors are now able to set it and forget it when it comes to finding yield.

That’s because these “programmable money” platforms use the tools available from the Ethereum network to locate the optimal interest rates at all times. With a yield optimization platform investors are freed from the drudgery of constantly watching yields and moving their assets.

Yield optimization works by creating a pool for each asset that’s deposited. When a user makes a deposit to one of these pools they receive yTokens, which are simply a yield-bearing equivalent of the coin they deposited to the pool. As an example, if a user deposits CURVE into the protocol they receive an equal amount of yCURVE in return.

The assets held in the protocol are automatically shuffled to the highest yield bearing lending platform in the entire DeFi ecosystem, thus maximizing yield at all times. The protocol checks for better yield bearing opportunities every time a user makes a deposit into the protocol, and will rebalance the entire pool if necessary. Users are able to burn their yTokens at any time to receive their initial deposit and any accrued interest.

Only Invest What You’re Willing to Lose

It shouldn’t be necessary to tell you this, but as an experienced investor I want to remind you that you should only ever invest money that you can afford to lose. If you’re investing your rent money you need to stop right now and find a way to free up some capital for investing that isn’t needed to pay for your everyday expenses.

Remember, the purpose of investing is to grow your wealth, not to risk losing it entirely.

Maintain a Healthy Crypto Portfolio

Keeping a healthy portfolio means creating your core investment, and making sure you diversify by adding in a number of satellite investments. This helps to even out your returns as the winning picks offset any losing picks.

This is true of diversifying your entire portfolio by including cryptocurrencies and its true of the crypto portion too. By adding a number of different cryptocurrencies you’re diversifying your risks and spreading your exposure to a broader mix of assets.

While this type of diversification means you’ll almost surely have some losers in your portfolio it’s far better to lose a few while winning some rather than losing it all because you kept all your crypto investment in one coin. You might not get the eye watering returns of a single rocketing coin, but you also won’t risk losing everything if the coin you pick crashes and burns.

Don’t Make Investments on Hype

It’s true for stocks and even more true for crypto. Ignoring hype around a project or coin is going to be crucial to your success.

When cryptocurrencies are involved you should never base your investing on what others are saying (that’s true for any investment). Instead you should be studying the market, the project, and the price action of the coin and then taking all that knowledge and using it to make informed investing decisions. You still might take some risks, but at least they will be well-informed and calculated risks.

Basing your research on the advice of others can be acceptable, but you will need to learn how to distinguish between those with good knowledge of trading and investing and those who are simply trying to shill for a coin. Mastering this will allow you to filter out much of the noise in the crypto markets and focus on important information that lets you develop your own strategy.

Conclusion

When it comes to investing in cryptocurrency, education is the key in 2022.

Understanding the basics of cryptocurrencies and crypto investing will help you make better sense of the crypto conversations that seem to be everywhere in 2021.

As an investor, even if you’re against cryptocurrencies, it is vitally important to understand them and to keep up with news and developments in the space. This will allow you to remain informed, and to modify your investing decisions if need be. It will also give you the ability to explain cryptocurrencies to friends and family who might be considering investing.

Ultimately it will be basic financial education that will help you decipher the latest positive trends from dangerous pump and dump schemes. Making cryptocurrencies a part of your investing strategy can help you to maximize your returns over time.

The post Investing in Cryptocurrency in 2022: Complete Guide appeared first on Coin Bureau.

Certainly NFTs are not all that new. It’s been possible to create these unique digital creations for years, but only recently have they become more popular among blockchain enthusiasts, artists, and collectors. With NFT valuations skyrocketing in 2021, the most expensive NFT sold for $69.3 million, the interest in NFTs has exploded among the creators of NFTs and collectors alike.

While the NFT craze seems to have peaked earlier in 2021, it is still a growing and very popular space, and there’s plenty of room for new creators with a unique take on creativity and digital artworks.

Given the potentially massive prices for some NFTs it’s certainly understandable that more creators are interested in getting involved and create their own NFT or collection of NFTs. Fortunately there are now tools that make it much easy to create your own NFTs and profit from the growing world of digital collectibles.

The following guide on how to mint an NFT will give you all you need to create your very first NFT. With the new knowledge, skills, and hopefully confidence you can then expand on your new-found abilities into other platforms or marketplaces.

Image via Shutterstock

It might surprise you to learn that the process of minting your own NFT in 2021 is not as technical as you might have thought. With the tools we’ll inform you of, and some basic skills with a computer, you can soon be the latest proud new NFT creator.

As with any technical undertaking however, it’s good to have a complete understanding before jumping in. Which is why we’ve created the following comprehensive guide to getting started in the process of minting your own NFT.

Let’s get started.

What Is an NFT?

As mentioned above, non-fungible tokens, or NFTs, have been around for some time. The very first type of NFT was actually created as part of the Bitcoin protocol and they were known as “colored coins.” These were digital representations of real-world assets created on the Bitcoin blockchain. They never really caught on however, mostly due to the creation of the Ethereum blockchain and mass adoption of the ERC-20 standard, and later the ERC-721 standard.

Colored coins were the very first NFTs. Image via Bitcoin.com

Because blockchain technology is well known as a great way to prove the authenticity and ownership of an asset it is a perfect match for the non-fungible token, which needs to be unique, authentic and have a proven chain of ownership. Because humans have a tendency to collect things, and to appreciate unique one-of-a-kind collectibles, the explosion of NFTs was only a matter of time.

NFTs use existing token standards to set unique identifiers that establish the authenticity, uniqueness, and ownership of a digital token or asset. The most commonly used blockchain for NFTs in 2021 is the Ethereum blockchain, but as indicated by the Bitcoin example above it is possible to create NFTs on other blockchains, and in the future one of these could overtake Ethereum as the primary chain for NFTs.

The difference between an NFT and blockchain based cryptocurrencies is that the NFTs are unique and cannot be exchanged equally like a cryptocurrency. For example, one BTC is identical to any other BTC. This is known as fungibility, and it is one of the defining features of currency, whether crypto or fiat. Non-fungible tokens then are those tokens that cannot be exchanged equally with other tokens, making them unique.

This is possible due to the transparency and immutability of the blockchain, whereby we are able to trace the timestamp of the creation of the token, who created that token, who the current owner is, and many other unique identifiers. All of these characteristics are stored on the public blockchain ledger and cannot be changed or manipulated in any way.

This makes the NFT an ideal creation when rarity and ownership proof is needed. This is why NFTs have gained popularity among collectors and artists.

For NFT Creators

Creators of NFTs get to enjoy a great degree of flexibility that’s often not available when using conventional methods for receiving value from the sale of their art, videos, music and others. When using NFTs a creator is able to side-step the middle-men that are involved in the traditional art sale scene and access the global marketplace directly. Using a reputable NFT marketplace will allow the creator to streamline what can otherwise be a very resource-intensive and expensive process. All of this means the creator gets to keep a larger share of the profits from their creativity and effort.

Creators are the backbone of the NFT ecosystem. Image via Medium.com

In addition, NFTs can provide creators with passive income and a stream of future payments. You see, an NFT can be created in such a way that a commission is paid to the creator any time the NFT is sold. For example, you could program in a clause that pays a 5% commission to the creator whenever the NFT is sold. That means 10 or even 50 years from now if the NFT is sold you, as the creator, receive 5% of the sale price – even if it is $1 million or more!

For NFT Collectors

Collectors of artwork and investors can appreciate the NFT for its transparency and immutability that avoids the possibility of counterfeits, and provides proof of ownership.

While it is true that copies of any digital artwork, including NFTs, can be made, the fact that the authenticity of the original artwork is always preserved makes the NFT a unique and valuable item even if copies are made. After all, there are thousands of copies of the Mona Lisa in existence, but the original maintains its value because it is the original.

In the same way that copying the Mona Lisa doesn’t diminish the value of the original, copying an NFT also does not diminish its value.

Should You Create an NFT?

As you probably have already seen there are a number of benefits to creating an NFT of your digital or real-world artwork. Because of the transparency and immutability that comes with NFTs you gain an increased control over your intellectual property.

And having your artwork as an NFT opens up a global network of marketplaces and art collectors interested in your creations. NFTs are the gateway to a decentralized and democratized world of art and digital item collectors.

How to Create an NFT

Now that we have all the background information out of the way you’re probably interested in creating your own NFT. However there are still some factors that could influence your decision regarding where you will create your first NFT.

Because even though Ethereum as best-known as the blockchain for NFTs, there are growing communities of NFT marketplaces and creators on a number of other blockchains. Those blockchains being used for NFTs include:

There are a number of blockchains that support the creation of NFTs. Image via Bitcoin.com

• Ethereum
• Binance Smart Chain
• Polkadot
• EOS
• Flow by Dapper Labs
• Cosmos
• Tron
• Tezos
• WAX

Note that currently when you mint an NFT on one blockchain it is pretty much not possible to transfer them to another blockchain. However as the technology improves and things such as cross-chain bridges become more popular and numerous it could be possible in the future to move an NFT to pretty much any blockchain that supports their creation and storage.

However that’s all speculative, so for now you might want to carefully consider which blockchain you are going to use. There are certainly pros and cons to creating NFTs on each of the various blockchains that offer support for them.

Because Ethereum is the most popular blockchain for NFT creation currently we are going to exploring minting NFTs on Ethereum in this guide. Binance Chain is also becoming quite popular and in the future we might create a separate guide that focuses on minting Binance Smart Chain (BSC) NFTs. One of the benefits to using BSC is that the transaction fees are much smaller than those on the Ethereum blockchain.

Binance will soon launch an NFT marketplace. Image via YouTube.com

One of the considerations is that the blockchain you choose to mint your NFT on will also determine which marketplaces you are able to use. The Ethereum blockchain has some of the largest NFT marketplaces, which include OpenSea, Rarible, and Mintable.

If you decide to go with the Binance Smart Chain you’ll choose between marketplaces such as BakerySwap, Treasureland, and Juggerworld.

How to Mint an NFT on Ethereum

Because the Ethereum network is most used for NFTs it has become quite easy to mint one on Ethereum. All that’s required are an account at the marketplace you’re going to use, an Ethereum compatible wallet, and some ETH stored in that wallet. Many people like to use either MetaMask or Trust Wallet as their Ethereum wallets, although there are many other possibilities.

OpenSea is the top Ethereum NFT marketplace. Image via OpenSea.io

Because Open Sea is the most popular Ethereum NFT marketplace, and MetaMask is among the most popular ETH wallets, we are going to use these two in our explanation of how to mint an NFT.

How to Mint NFTs on OpenSea

Before you head off to the OpenSea site make sure you’ve created a MetaMask wallet and that it contains some ETH that you will use during the NFT creation process.

The first obvious step once your wallet is set is to head over to the OpenSea website. Once there locate the “Create” button on the left side of the website and click it.

Get started minting NFTs at OpenSea. Image via OpenSea.io

You’ll be taken to a screen asking you to connect your MetaMask wallet (you can also choose from other supported wallets). Click to sign in and then follow the prompts to connect your wallet. You may be required to digitally sign a wallet message to confirm your ownership of the wallet address.

Once that’s down you’ll be taken into the “My Collections” screen on OpenSea, where you’ll be able to create a new collection.

Get ready to create a new NFT! Image via OpenSea.io

Click on the “Create” button and you’ll get a popup asking for you to upload the logo for your collection as well as a title and an optional description. Note that during this step you are not creating an NFT and all of these can be changed at a later time.

Once you’ve created the collection details it will show up in you’re My Collections screen. Clicking on it will take you to a new screen where you’ll be able to actually create an NFT. Click the “Add New Item” button.

A shiny new NFT.

After clicking the button you’ll receive a popup asking you to sign the transaction, and after clicking “Sign” you’ll be taken to the page where you can upload your Image, Video, Audio, or 3D Model. Currently the file formats supported are JPG, PNG, GIF, SVG, MP4, WEBM, MP3, WAV, OGG, GLB, and GLTF with a max file size of 40 MB.

Add the name and description (optional) of your file. You can also include an external link if you have a website where you are featuring your works. Otherwise OpenSea will create an internal link to the item within its own website.

Once you have submitted the necessary information, you can go ahead to upload the image, art, audio or 3D model. There are also options to set special properties for the uploaded item, as well as levels and stats. You can also set the item with unlockable content or mark it as explicit or sensitive content.

After you are done with all the extra customization, click Create to mint the NFT.

Adding a new item in Opensea.

You will have to confirm the creation of the NFT on your wallet by signing another message. Immediately after the confirmation, your NFT should appear as a collectible on your wallet.

You can then list the NFT on the marketplace by clicking the Edit button. This will take you to a page where you can choose the ERC-20 token you want to receive as payment and set a royalty clause.

Conclusion

See, minting your own NFT is not all that challenging. If you can create a wallet, you can create an NFT too. It’s really not much more difficult than creating an account at ebay or Amazon and uploading items to sell.

While we used OpenSea as a guide to minting an NFT you’ll find the process is quite similar on any other platform, regardless of which blockchain they support. So if you’re interested in participating in the NFT ecosystem as a creator why not get out there and start minting your own NFTs.

Featured Image via Shutterstock

The post How to Mint NFTs: The Complete 101 Guide! appeared first on Coin Bureau.

There are some uncomfortable facts that anyone holding crypto needs to face up to. There’s the fact that, while on some days your portfolio balance may be up, up and up, on others it will be down, down and down. Learn to enjoy the ups and endure the downs. (And buy the dip, of course.)

A visual representation of a typical week in the crypto market. Image via Shutterstock

Then there’s the hard fact that no, you didn’t get into crypto as early as you’d have liked. I wrestle with this one almost every day and I’m pretty sure I’m not the only one. What if I’d got into Bitcoin when it was below $100? What if I’d figured out how to mine it back in 2010? Why didn’t I buy more than one ETH this time last year? How could I not see that DOGE was going to rally like it has?

These two tough truths are not the sort of things we should dwell on too much. That way madness lies. We learn our lessons and accept that crypto – like a lot else in life – is always going to carry some regrets. In the end, it comes down to accepting our lot and being thankful for the good fortune we’ve enjoyed.

There is, however, one more inescapable fact we need to face up to. Like the first two it’s inevitable, but, unlike them, it’s not something most of tend to dwell on too much, even though we really should. The fact is that one day, the big crypto odyssey will come to an en end for all of us.

An idealised representation of what death might be like. Image via Shutterstock

Yes folks, we’re all going to die sometime. Death is life’s only certainty – ignore what Ben Franklin said about taxes being the other, as the super-rich seem to have got around that one. The inevitability that we’ll all meet our end is one of those things you come to accept and dwelling on it too much isn’t healthy. But, when next you log in to see how your portfolio is doing – sometime in the next five minutes if you’re anything like me – consider this fact afresh.

What Happens to When You Check Out?

There is no better example to consider here than that of the godhead himself, Satoshi Nakamoto. The creator of Bitcoin quite naturally allocated a few BTC to himself – a tidy one million, in fact. Since then, these coins have sat in his wallet and have never been touched.

The consensus amongst most in crypto is that Satoshi has left us for the great cypherpunk convention in the sky. Unless he has for some reason decided not to touch a stack of BTC that would make him one of the wealthiest people on the planet, it’s fair to assume that he is no longer with us.

Right, who’s got the keys… Satoshi? Anyone? Image via Shutterstock

But, with Satoshi being (presumed) dead, the question of what happens to that almighty hoard of wealth has a pretty simple answer: nobody can touch it. Ever. Unless he left the private keys in someone else’s possession, those one million BTC – a little under 5% of the total supply, remember – are gone for good.

It’s a pretty sobering thought. Perhaps it’s what Satoshi wanted and there is a slim chance that there’s another explanation as to why those coins have sat there doing nothing for over a decade. But even if there is, the story of Satoshi’s stacks should resonate with all of us.

The moral of this story is: when you die (as you inevitably will) unless you leave clear instructions about how to access your crypto, then it too will be gone forever. If you only ever bought ten ADA and then lost interest altogether, then this will probably be no great loss – assuming ADA doesn’t seriously moon between now and your demise, that is. But if you’ve carefully nurtured a portfolio over time, then you need to consider what you want to happen to it when you’re gone.

Ok, now where’s the best place to leave my private keys…? Image via Shutterstock

It goes without saying that everyone should make a will. If you don’t, then you can leave behind one hell of a mess for your loved ones to clear up, at a time when they’re probably stressed enough as it is.

Where There’s a Will…

I’ve seen this happen to friends and family in the past: a parent has died intestate (without leaving a will) and they, as next of kin, have had to deal with a mountain of paperwork to try and get things sorted out. One friend told me that, after his father died without leaving a will, he had to spend every weekend for over six months picking up the pieces. That time spent going through the process of probate and dealing with solicitors is not something he remembers fondly.

If you want your loved ones to have the benefit of your hard-earned pile of crypto after your death, then you need to make sure that instructions about how to access it are left in your will. Otherwise, they almost certainly won’t be able to touch a satoshi of it.

Many of us invested in crypto are relatively young and might not have even considered making a will before. Well, now it’s time. If you’re like me then perhaps you happily assume that you’ve still got decades left and boring legal stuff can wait. There’s still so much to do, so many sats to stack.

No, not that sort of Will. Image via Shutterstock

If the last year has taught has anything, it should be that life is pretty precarious. Covid may have mostly carried off the elderly and ill, but plenty of young and healthy people the world over have died of it too. Quite apart from all the misery and suffering that has resulted in, that’s also potentially a lot of crypto assets that have been left in limbo – assets that would doubtless benefit grieving families.

Going about making a will should be relatively straightforward, though it will vary depending on which country you live in. A good starting point may be to speak to your parents (if you still have any) and get advice from them. They may be able to point you in the direction of the family solicitor or suggest some other options.

A little research will tell you what needs to be included in your will and, in most cases, the document will have to be signed by at least two witnesses who are not named as beneficiaries in the will itself. It must then be safely stored, either with a solicitor, bank, or a similarly trustworthy custodian.

Yes, that sort of will. Image via Shutterstock

If in doubt, then it’s a good idea to employ a legal professional to help you write your will, as they will know how to structure it correctly and ensure that it is clear and unambiguous. You can write your own will and have it witnessed to make it a legally binding document but, as any self-respecting crypto investor will appreciate – doing your own research is vital.

If you live in the UK, the gov.uk website is a good place to start, though not all governments provide online resources like this. Nevertheless, there is a wealth of online material which will talk you through the process, wherever in the world you live.

Getting Started

When making your will and deciding who you would like to inherit your crypto, you should first make a careful inventory of all your digital assets. There are plenty of helpful tools that you can use to keep track of your various holdings such as Accointing and Blockfolio, which are especially useful if you have assets stored across a variety of wallets and exchanges.

Speaking of wallets – if you have a sizeable hoard of crypto, then you should definitely consider investing in a hardware wallet. Keeping large amounts of crypto on an exchange is asking for trouble, as exchange hacks have happened in the past and will almost certainly continue to happen in the future. Although any reputable exchange will have excellent security and keep the majority of its assets in cold storage, entrusting your entire stack to any one place is a terrible idea.

Not the sort of person you want your crypto to end up with, even if you are dead. Image via Shutterstock

If you want to learn more about hardware wallets and which are the best ones to go for, then good old Guy has a video that will tell you everything you need to know.

Next Steps

Once you’ve made an inventory of all your crypto, you should make sure that you have all the necessary information with which to access it. It’s easy to get blasé about this, as most of us are by now used to logging into various apps via our smartphones, with often only a fingerprint of PIN code required. Remember, when you’re gone, PINs and passwords go with you and, unless some deeply macabre situation has unfolded, your loved ones won’t have your fingerprint handy either.

Depending on how many wallets or exchanges you have crypto stored on, this could end up being a lot of information that needs gathering. The best way to go about things is to imagine yourself in the shoes of someone with no idea about how to access your crypto. What information will they need? Do not assume that they will be familiar with any part of the process.

This information should include PIN codes, passwords, seed phrases and any other security details that might be needed. If you’re sensible, these should be different for every wallet and exchange account. That way, if someone shady gets their paws on some of your information, they can’t use it to clean you out entirely.

How not to store your passwords. Image via Shutterstock

Your beneficiaries should also know where they can find your hardware wallet if you use one. If you’ve done a good job of hiding it up to now, it may well be horribly difficult for them to find – something they won’t thank you for, even if there is a ton of money stored on it.

You should also provide the access information for any online password managers, as well as links to the exchanges and custody services you use. Assume that the person you’re granting access to is starting from square one.

It’s also vital to ensure that your loved ones have the necessary information to access your phone, computer and email accounts. It’s all well and good them having your Binance login details, but matters will be made a lot easier if they can gain access in the same way you did. Having access to your devices will also enable them to use the two-factor authentication you should have set up. It may also be that vital information is stored on your computer, so make sure they know where to look.

Make it easy for them. Image via Shutterstock

The best way to ensure that all this information is accessible is to write down a step-by-step guide that can either go in your will or be entrusted to your next of kin to be opened in the event of your death. List all the places where you have crypto stored, along with a clear guide about how to access each one. This is a good opportunity to review your security procedures too and to check that every repository you have is properly fortified.

Once you’ve written out this guide, you can check whether you’ve set out the process correctly by sitting down with the person you’re naming in the will and go through the process step-by-step. This is particularly useful if your beneficiary is unfamiliar with crypto.

Keep it Secret, Keep it Safe

The obvious downside to writing all this information down is that if it gets into the wrong hands then your crypto could be seriously compromised. You therefore need to choose a safe and secure way to store all this information, which can then be accessed by your beneficiaries after your death.

Security 101. Image via Shutterstock

If you’re storing your will with a bank or other secure custodian, then you can take the opportunity to store your vital information here too. Another good option is a safe deposit box – it may seem extreme, but keeping your crypto safe is of paramount importance if you want to have any to pass on.

When writing your will, it’s important to make reference to the fact that you’ve written down this information and leave instructions as to where it is and how it can be accessed. It’s important however not to put this information in the will itself. This is because wills become part of the public record during the probate process and this will obviously risk leaking your access information.

The best place to leave this information is therefore in a memorandum to your will. This is a separate document that does not go on record but which can still be cited in your will, meaning that only your beneficiaries will be a party to it. Or, you could store all the relevant information in an encrypted document or safe deposit box and use the will’s memorandum to pass on the access information for either method.

See attached. Image via Shutterstock

The other, much riskier option, is to store your account details yourself and make sure that your beneficiaries know where they can be found. This makes them more vulnerable in the event of a burglary or house fire, but does at least ensure that they can be quickly retrieved after your death.

Leaving Crypto in Trust

While passing on your crypto holdings via your will is one option, another is to leave them in trust, for your beneficiaries to gain access to at a later date. A trust is a method of estate transfer that hands control to a third party when the creator of the trust dies. This third party – the trustee – then administers the trust according to the conditions laid down by its founder, for the benefit of their successors. You can get a more detailed breakdown of the difference between wills and trusts here.

There are a number of advantages to using a trust, not least of which is the fact that it can be quicker, easier and cheaper than going through probate. This is the process by which your property is submitted to the court and then distributed according to the terms of your will (if you’ve left one). This can often take weeks, or even months, during which the value of your crypto could decrease. It can also incur court costs and can drag on for years if other parties decide to contest the will.

Placing your crypto in a trust means that it does not need to go through probate and your trustee can distribute it to your beneficiaries as you have stipulated. This could be right away, or at a later date if your beneficiaries are younger. Court delays and costs are avoided and your successor trustee can carry on running the trust according to your wishes.

No, not that sort of trust. Image via Shutterstock

A trust is also a great option if your beneficiaries are not tech-savvy, as you can appoint a trustee who is to ensure they receive the funds. It’s also a great deal more private than leaving it in your will, as it won’t go through the courts and be subject to scrutiny. If you have a large crypto stash then you could stipulate that the trustee manages it for longer, either to grow the holdings, or to disburse portions of them at regular intervals. This way, you can maintain a degree of control over your crypto even long after you’ve gone.

Do Lawyers Need to be Involved?

As we’ve seen, if you decide to draw up a will yourself and have it witnessed correctly, then it can function as a legally binding document. That at any rate is the case here in the UK – if you live elsewhere then you should double-check with the authorities there, as their rules may be different.

Lawyers: not always a bad idea. Image via Shutterstock

However, if your will is more complicated than simply leaving all your worldly goods and chattels to one particular person, or you’re worried that there may be difficulties in interpreting your wishes, then it’s always best practice to seek legal advice. A local Google search will point you in the direction of the sort of professional you need to speak to, be it a solicitor, lawyer, notary etc. Again, this may vary from country to country.

Trusts do require a great deal more to set up, though as we’ve seen they have a number of advantages over wills. If you decide to set up a trust for your crypto, then you’ll need to seek legal advice.

Communication is Key

Let’s face it, crypto can be daunting for some. There may well be many future beneficiaries out there who are unfamiliar, uncomfortable with or downright hostile towards crypto. Therefore it’s important to discuss these matters, where possible, with the people you’re planning on leaving it all to.

We need to talk. Image via Shutterstock

If the beneficiary of your crypto is unwilling to deal with digital assets when you’re no longer around, you should make sure that they know how to convert them to fiat currency once they’ve inherited them. Again, this can be done by leaving instructions along with your passwords and private keys, but talking through these issues is time well spent.

It will save them a lot of worry and stress if they know in advance that they can cash out your assets if needed. It’s also important to explain to them that transaction and exchange fees are likely to be levelled on any withdrawals.

Alternatively, you can make sure that the executor of your will – the person responsible for seeing that your wishes are carried out – is familiar with crypto and with converting it into cash. Having someone trusted to take on this job could also save your loved ones a lot of trouble and anxiety further down the line.

A conversation with your loved ones about getting access to your crypto in the wake of your death is probably not an appealing prospect to many people, but is a necessary step all the same. That way, you can gauge how receptive they are to the idea of taking on your digital assets and also get a clearer idea of what sort of information you need to leave them.

What not to do. Image Shutterstock

Talking through matters like these is also a healthy and responsible step to take. Planning for the future is vital, even if it’s a future without you. If you have children then your crypto investments could one day go towards their college funds, or help them in any number of other ways, so there’s no excuse for burying your head in the sand.

It may be that your intended beneficiaries themselves hold crypto, so any conversation about what to do with yours should also prompt them to put similar measures in place. You will thank yourself for bringing the matter up if you one day turn out to be bequeathed their crypto instead.

It Pays to Plan Ahead

It’s not much fun planning what to do with your crypto when you’re no longer around to enjoy it, but it’s one of those steps any responsible hodler needs to take.

Most of us probably have dreams about using our crypto to provide for us in later life or to help finally buy that dream home we’ve always wanted, take the holiday of a lifetime, or fulfil any number of other daydreams that, let’s face it, are all that get us through the day sometimes.

Formulating an ironclad crypto strategy. Image via Shutterstock

With a bit of luck, those dreams will become a reality for us one day. But an unfortunate few will check out earlier than expected and assuming that it won’t be you is just tempting fate. Crypto is not some passing fad and it’s going to be one of the forces that shape our lives in the years ahead. Those who see it as here today, gone tomorrow need to think again.

A bit of careful planning is all that’s needed to ensure your crypto lives on after you’ve shuffled off this mortal coil. We all know it can be a wild ride and we all wish we’d got into it sooner. There is however pretty much nothing we can do about either of those facts.

We can though plan for the future and for when we’re gone. We may not be able to take it with us, but we sure can make our crypto keeps doing wonders for our loved ones after we’ve gone. Leaving a nice stash of sats is the best way for any true hodler to be remembered, after all.

Featured Image via Shutterstock

The post Planning for the Inevitable: How to Leave Crypto in Your Will appeared first on Coin Bureau.

All of these allow you to purchase and take possession of Bitcoin in your own personal wallet. Then there are the CFD brokers that allow you to speculate on the price of Bitcoin through financial derivatives called contracts for difference that do not convey any ownership of Bitcoin.

However most Canadians looking to invest in Bitcoin want to actually own the digital currency, and to help them out we’ve put together this review of the best ways to buy Bitcoin in Canada.

Image via Shutterstock

In our research we found that one of the leading Bitcoin exchanges in Canada is Bitbuy, which we’ve covered before in this review Bitbuy is preferred for its low fees, top security, fast transactions, ease of use, and more.

And you can feel totally confident in buying Bitcoin in Canada. Even though digital currencies aren’t considered as legal tender money in Canada, Bitcoin is legal. According to the tax authorities in Canada there are tax rules for digital currency transactions, and Bitcoin and other cryptocurrencies fall under the Income Tax Act.

That means Canadians are free to buy, sell, and hold Bitcoin. It also means Canadian exchanges are regulated under anti-money laundering and counter-terrorism financing laws and users will need to complete appropriate KYC/AML procedures when purchasing Bitcoin in Canada.

With that out of the way let’s have a look at the top Bitcoin exchanges in Canada and find out how to buy Bitcoin in Canada.

Bitbuy

As one of the longest established Bitcoin and cryptocurrency exchanges in Canada it’s no wonder that we found Bitbuy to be superior for a number of reasons. One of those is the trust engendered by such a long-lived cryptocurrency exchange.

The Bitbuy website says they’ve been Canada’s trusted choice since 2016, and while that’s impressive, the fact is that Bitbuy started out as “InstaBT” all the way back in 2013. Now that might not seem so long ago, but in cryptocurrency terms that’s like going back to the earliest days of trading and exchange.

Main Features of BitBuy

Bitbuy follows a 95% cold storage policy, and secures all accounts with its 2FA security policy as well. Bitbuy clients can feel secure knowing they are dealing with an exchange that takes the security of their account and their Bitcoin very seriously.

Plus, Bitbuy doesn’t just offer Bitcoin for sale. Currently there are seven of the most popular and largest cryptocurrencies available for sale on the platform. These seven are Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), EOS (EOS), Bitcoin Cash (BCH), and Stellar Lumens (XLM).

All come with tight spreads thanks to the deep liquidity at Bitbuy (they access over 10 markets), and with the low fees (0.10% maker / 0.20% taker) that Bitbuy clients have come to appreciate.

BitBuy’s Advanced Trading Platform.

Deposits and withdrawals at Bitbuy are done in CAD or in cryptocurrencies.

For fiat transfers in CAD there are two options: Interac e-transfer and bank transfer. Interac transfers come with a 1.5% fee on both deposits and withdrawals, while bank transfers come with a 0.5% deposit fee and a 1.5% withdrawal fee.

Cryptocurrency deposits can be made in any of the supported coins at Bitbuy and there are no fees. Withdrawals can also be done using any of the supported cryptocurrencies, and the user will be responsible for the mining fees, which vary by cryptocurrency.

If all of this sounds appealing let’s have a quick look at how to set up an account at Bitbuy in four easy steps.

1. Set Up Your Account:

We like Bitbuy for buying Bitcoin in Canada for all the reasons noted above. What really attracts us is the trustworthiness of the exchange, and all the effort they’ve put into security. It’s also incredibly easy to use, and even beginners will be able to quickly set up an account and start investing in Bitcoin, or any of the other six cryptocurrencies offered at Bitbuy. Plus, there’s a Pro Trading platform where advanced traders will feel more at home.

Clicking this link will take you to the Bitbuy homepage, where you’ll see the blue “Sign up to Get Started” button. Clicking it will take you to the screen shown below:

Registration at Bitbuy is quick and easy.

Fill in the requested information and click the Sign Up button. Bitbuy will then send you an email with a link to click that will verify your email address and take you to the next step.

3. Verify Your Account:

After verifying your email you will be required to enter your phone number. This is where SMS messages are sent with codes to secure your account. After entering your phone number Bitbuy will immediately send a six digit code to the number entered. This code needs to be entered before you can continue.

Once that’s out of the way Bitbuy will ask you for some additional information. If you want to buy Bitcoin you’ll need to provide this information as it is part of the AML / KYC requirements in Canada. This also includes giving permission for Trulioo to verify your identity.

Trulioo is a third-party provider that will take the personal information provided and compare it with the information held in a number of external databases to verify your identity. This saves the hassle of scanning and submitting documents, but if Trulioo can’t locate you in the external databases you may be required to submit ID and residence documents.

4. Adding Funds:

Next step after verifying your account will be to add funds. You can deposit CAD by clicking the “Add Canadian Dollars” link in your account dashboard, or you can deposit one of the seven supported cryptocurrencies if you already own them and want to use those cryptocurrencies to buy Bitcoin.

Fund your account in CAD or in cryptocurrencies.

5. Purchase Bitcoin:

After completing a deposit you can go ahead and purchase some Bitcoin, or any of the other cryptocurrencies they support. Once you are on the home screen below just click the “Buy” button to purchase.

Buy and sell Bitcoin and six other popular cryptocurrencies.

Using the Express Trade feature will let you buy within seconds, but the fee is a bit higher than when using the Pro Trade feature. Any coins you purchase here go to your included Bitbuy wallet.

6. Sell Bitcoin

Bitbuy is also useful for selling Bitcoin and other cryptocurrencies. Simply go to the home screen as above and this time click the “Sell” button. You can sell your Bitcoin for another of the supported cryptocurrencies, or for CAD. You can also transfer supported cryptocurrencies that you purchased elsewhere and sell them on the Bitbuy platform.

Bitbuy is a very safe exchange, undergoing regular proof-of-reserves audits to ensure users’ funds. They are also the only Canadian exchange to offer 1:1 BTC insurance thanks to their partnership with Knox.

Major International Exchanges

While we prefer Bitbuy over other exchanges we know that people do like to have some choice when dealing with their finances. With that in mind we also include the following international exchanges that can be used in Canada to buy Bitcoin.

Binance

Binance is one of the largest cryptocurrency exchanges in the world. Based in Malta, they have operations that span the globe, and offer their services in over 180 countries worldwide. It also lists nearly 300 different cryptocurrencies (including Bitcoin of course) and offers trading in nearly 1,000 different cryptocurrency pairs. They also have a Fiat-to-Crypto gateway that allows users in certain jurisdictions to purchase Bitcoin using more than 40 different fiat currencies.

As of March 2021 the exchange boasts more than 15 million users, and it settles roughly $4 billion a day on average, with the busiest days seeing over $20 billion in trading volume.

Main website of Binance.com.

One of the benefits of trading through Binance is that they offer some of the lowest trading fees that can be found for cryptocurrencies. Both market makers and market takers pay a low 0.1% fee, which can be reduced even further for those holding the native Binance Coin (BNB) token, or for referring new clients. There must be a lot of traders using BNB to get discounts as it has grown to be the third largest cryptocurrency by market cap.

Another feature at Binance that many traders like are the frequent promotions and bonuses offered by the platform.

One of the downsides to Binance is the lack of regulation for the exchange. Even though the exchange has put its own insurance into place for traders, it’s called the Secure Asset Fund for Users, if Binance were to go bankrupt there is no protections offered for any of its clients.

Overall Binance is a very good exchange, and you aren’t likely to find another that has as many features and offerings as Binance.

Coinbase

San Francisco based Coinbase is another large and popular global broker for buying Bitcoin and other cryptocurrencies. They are also a main competitor of Binance, although to be honest they have far fewer tools available, and offer far fewer cryptocurrencies.

Coinbase is far larger in terms of total users, with more than 30 million users, but is far smaller in terms of daily trading volume, with Binance outpacing them by as much as 10x on some days.

Coinbase has also recently announced that they will be going public, which to our knowledge will make them the very first publically traded cryptocurrency exchange.

Coinbase Trading Platform on Desktop & Mobile

We should also note that Coinbase has both a broker and an exchange service. The broker service is simply called Coinbase, and it is used to buy and sell coins directly from the broker. This makes Coinbase incredibly easy to use, and it contributed greatly to the early adoption of the platform and its rapid growth.

The downside to using Coinbase as a broker is the cost involved. Coinbase charges a either a variable fee of around 0.5% on transactions or a fixed fee, whichever is greater. The flat fees are as follows: for purchases less than or equal to $10, Coinbase charges a fee of $0.99; for purchases between $10-25, $1.49; for $25-$50, $1.99; and for $50-200, $2.99. In addition, for Canadians there is an additional variable fee for buying with a credit or debit card that is 3.99%.

There is also a traditional exchange known as Coinbase Pro, which is more technical and designed for experienced cryptocurrency users. Coinbase Pro uses an order book and you are buying and selling to other users just as you would at Binance or any other exchange.

User Interface of Coinbase Pro

While this is cheaper compared with Coinbase as a broker, it is still far more expensive than Binance. In fact, maker and taker fees are 0.5% for those who trade less than $10,000 per month. If you want to reduce the Coinbase Pro fees to match the 0.1% maker rate offered at Binance you would need to trade $100,000 per month. That’s nothing though. If you were looking to match Binance’s 0.1% taker rate you would need to trade $50 million per month.

On a more positive note there are no withdrawal fees to contend with at Coinbase Pro, and there are also no deposit fees as long as you are depositing and withdrawing cryptocurrencies, not fiat currency. If you do want to deposit or withdraw in fiat currency there’s a $10 fee for deposits and a $25 fee for withdrawals.

Gemini

Gemini is another international exchange based in the U.S., and unlike every other exchange it is actually backed by U.S. regulators. The exchange is owned by the Winklevoss twins, who are famous for once controlling 1% of the total Bitcoin supply.

Gemini was very careful to secure the backing of U.S. regulators, beginning with the New York Department of Financial Services. Gemini has also created and released its own stablecoin called the Gemini Dollar (GUSD).

Gemini Simple & Advanced Trading Platforms

Of course it isn’t cheap to secure regulation in the U.S. and that cost has led to high fees for Gemini users. Fees at Gemini rival those at Coinbase and transaction fees for trades less than or equal to $10, are $0.99; for purchases between $10-25, it’s $1.49; for $25-$50, $1.99; for $50-200, $2.99; and for greater than $200, it’s $1.49. In addition to transaction fees, there’s a “convenience fee,” which is 0.5 percent above the cost of the coin at the time of purchase.

Gemini isn’t really geared towards retail investors. Rather it is for wealthy investors and institutions. It offers a secure institutional custody service backed by New York Banking Laws. That custody service, which is used to store cryptocurrencies securely in offline wallets, has a global infrastructure. Gemini also offers insurance on cryptocurrency holdings, which is somewhat unique among exchanges.

Local Canadian Exchanges

Coinsquare

Coinsquare is a Toronto-based Bitcoin exchange that’s been in business since 2015. It is also the largest Canadian exchange by volume. Along with Bitcoin users are able to purchase a handful of other cryptocurrencies, including Litecoin and Ethereum. One benefit the exchange offers is the ability to purchase Bitcoin using CAD.

Coinsquare’s Main Features

It also has pretty competitive fees of just 0.2% on trades, and 2.5% on deposits using bank draft, Flexepin, or Interac. Transfers by wire have a 0.5% fee, but credit card deposits come with a hefty 10% fee. When it comes to withdrawals users are limited to direct bank deposits, and the fee is 2%, with a minimum transfer of $100. Alternatively a wire transfer can be used, but the minimum transfer is $10,000, while the fees are 1-2%.

Coinsmart

Coinsmart is also Toronto based, but it is fairly new, having launched in mid-2018. Coinsmart allows for Bitcoin purchases using CAD directly with a credit or debit card, although there is a 6% processing fee involved. Wire transfer funding is far better with no fees incurred.

There are also no fees for e-transfer deposits that are greater than $2,000, but deposits that are smaller than this incur a 1.5% fee. After funding your account there is a 0.2% fee on trades, and when you’re ready to withdraw there is a 0.0005 BTC fee. If it sounds like a lot of fees, we agree, it is.

Coinberry

Coinberry is FINTRAC registered for Bitcoin purchases and sales in Canada, and it’s been in business since 2017. It is competitive in terms of fees as there are none for deposits or withdrawals. It also offers plenty of funding methods, and deposits can be made via credit cards, wire transfers, or Interac e-transfers.

Coinberry Mobile & Desktop Trading

Trades come with a 0.5% fee, so that’s a bit high. Also, credit card deposits are limited to $500, which won’t get you much Bitcoin these days. The platform also has a policy of locking withdrawals for 72 hours from the time of first deposit for first-time users in order to avoid fraud and money laundering. An interesting bit of history is that Coinberry’s partnership with the Town of Innisfil resulted in the first payment of property taxes with Bitcoin in Canadian history.

Shakepay

While many of the exchanges are Toronto-based, Shakepay is Montreal-based. It is superior to many other exchanges in its policy of allowing purchases and sales of Bitcoin free of any fees. That means no deposit fees, no withdrawal fees, and no trading fees. One downside is that Shakepay does not accept credit card deposits, only wire transfers and Interac e-transfers. Shakepay was launched in 2015 and is well-known for its excellent customer support.

Shakepay claims to be the easiest way for Canadians to buy and sell Bitcoin.

Newton

Newton is another no-fee exchange that’s located in Toronto. It does not support credit card purchases, but users are able to connect their bank accounts to make purchases, or they can use wire transfers or Interac e-transfers. Newton claims to have the best cryptocurrency prices in Canada.

One positive for new cryptocurrency enthusiasts is the Newton platform is quite user friendly, streamlining buying and selling by only offering market orders. While there are indeed no actual fees charged, Newton makes its revenues in the spread, so users should be careful that they aren’t paying too much due to wide spreads from the exchange.

No fee crypto trading is good, but watch the spreads.

Note that while deposits and trades are free of fees, the same is no longer true for withdrawals. Due to the huge increase in network fees Newton introduced something they call Surge Pricing in February 2021. With this they cover the first $5 in network fees and users are responsible for any additional amounts above $5. Newton also offers third-party custody for secure asset storage and is a registered money service business with FINTRAC in Canada and FinCEN in the US.

Conclusion

As you can tell from the broad choice of exchanges available, Canadians have certainly embraced Bitcoin. It’s quite easy, and in many cases also inexpensive, to purchase Bitcoin if you’re Canadian. Based on our own research, one of the best exchanges in terms of fees and service is Bitbuy. There are others who do well in terms of fees, but in the overall service and trading platform we have to give the nod to Bitbuy. We were also pleased that they are also the only Canadian exchange to offer 1:1 BTC insurance, which provides a level of security not found at other brokers.

We did notice that fees are most competitive for actual exchanges like Bitbuy. When dealing with the likes of Coinbase or Gemini, which function more like brokers than exchanges, fees can get quite expensive.

Overall Canadians have a very good selection of brokers, and anyone who wants to own Bitcoin shouldn’t find it too difficult, or too expensive to do just that.

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