A portfolio strategist for American financial services firm Morningstar says that cardano could become a mainstream cryptocurrency alongside bitcoin and ether, forming a “big three” of mainstream cryptocurrencies.

Amy Arnott, a cryptocurrency-focused portfolio strategist at Morningstar, shared her views on crypto regulation, ether, and cardano in an interview with the Insider last week.

Noting that since many cryptocurrencies are not cash-generating, Arnott said it is difficult to determine a suitable price for them. However, she explained that ether has an in-built price to an extent because it is used to power decentralized finance (defi) transactions and support non-fungible tokens (NFTs). The strategist elaborated:

The fact that ether is used as a utility should provide some sort of price floor, but I’m not sure what that should be. A lot of people talk about a network effect where these currencies become more valuable as they are used more and there are more interdependencies and connections.

Arnott also believes that cardano (ADA) is a promising cryptocurrency that could join bitcoin and ether to form a “big three” of mainstream cryptocurrencies. She elaborated:

Cardano is similar to ethereum in that it’s a protocol that has a lot of potential technical applications. There’s a lot of enthusiasm about cardano, and also various stablecoins.

The Morningstar strategist continued to share her view on the institutional adoption of cryptocurrencies. “The interesting thing that’s happened over the past year or so is that institutional investors have been far more willing to adopt cryptocurrencies and look at them as an investment asset. As that trend continues we’ll see other cryptocurrencies become more mainstream,” she opined.

She noted that she would really like to see a diversified cryptocurrency index fund in the form of an exchange-traded fund (ETF). However, the U.S. Securities and Exchange Commission (SEC) still has not approved any crypto ETF, making it “very difficult for mainstream investors to gain exposure to cryptocurrencies.” Arnott opined:

Regulatory risk is a big issue – that’s been the driving factor behind a lot of the volatility over the past few months. If governments around the world clamp down on crypto in general, or bitcoin and ether specifically, that would be a large negative.

What do you think about the comments by the Morningstar strategist? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

HODL. DApp. Ethereum.

No, these are not words from a newly-discovered alien language. They’re among the many new and key terms in the language of cryptocurrency.

Cryptocurrency isn’t just a novel investment option, and in many ways represents a different world altogether compared to traditional stocks and bonds. Between unfamiliar acronyms, emerging technologies, and keeping up with memes and tweets, just learning the basics takes time, even for seasoned traditional investors.

As with any investment, it’s important to understand exactly what you’re investing in before you start. That’s especially true when it comes to a speculative — and still evolving — asset like crypto. 

There are a few prerequisites we recommend before you buy into crypto, like stocking your emergency fund, paying down high-interest debts, and securing a traditional retirement plan. And, like we’ve said before, you should only ever put into crypto what you’re willing to lose, and experts recommend dedicating no more than 5% of your portfolio to these digital assets. 

But another item you should add to your checklist is at least a beginner’s understanding of what you’re getting into, including how crypto differs from other investment strategies, and the different factors that can affect a cryptocurrency’s market value.

Here are some of the terms and phrases that will help beginners better understand the world of crypto investing. 

Crypto Terms You Should KnowAltcoin

Any coin that’s not Bitcoin. Altcoins can be anything from the second-most popular coin, Ethereum, to any of the thousands of coins with very minimal market value. Experts say you should largely stick to the bigger, more mainstream cryptocurrencies as an investment.

[RELATED]: Follow These Personal Finance Experts if You’re Curious About Crypto

Bitcoin

The first and most valuable cryptocurrency, launched on Jan. 3, 2009. While its value has climbed steadily since then, it has seen wild fluctuations. In the past months alone, the price of Bitcoin has fluctuated from a record high of $60,000 to below $30,000.

Bitcoin Cash

A peer-to-peer electronic cash system that formed from a fork of the original Bitcoin. Where Bitcoin is widely accepted as too volatile to be useful as a currency, Bitcoin Cash is designed to be better optimized for transactions.   

[RELATED]: Bitcoin — The First Cryptocurrency

Block

Groups of data within a blockchain. On cryptocurrency blockchains, blocks are made up of transaction records as users buy or sell coins. Each block can hold only a certain amount of information. Once it reaches that limit, a new block is formed to continue the chain.

Blockchain

A digital form of record keeping, and the underlying technology behind cryptocurrencies. A blockchain is the result of sequential blocks that build upon one another, creating a permanent and unchangeable ledger of transactions (or other data).

Coin

A representative store of digital value that lives on a given blockchain or cryptocurrency network. Some blockchains have the same name for both the network and the coin, like Bitcoin. Others can have different names for each, like the Stellar blockchain, which has a native coin called Lumen. 

Coinbase

A popular centralized cryptocurrency exchange. Coinbase made history recently as the first cryptocurrency exchange to go public on the Nasdaq.

Cold Wallet/Cold Storage

A secure method of storing your cryptocurrency completely offline. Many cold wallets (also called hardware wallets) are physical devices that look similar to a USB drive. This kind of wallet can help protect your crypto from hacking and theft, though it also comes with its own risks – like losing it, along with your crypto.

[RELATED] A Crypto Wallet Can Help Keep Your Coins Safe. Here’s How to Decide if You Need One 

Cryptocurrency

A type of currency that’s digital and decentralized. Cryptocurrency can be used to buy and sell things, or as a long-term store of value.

Decentralization

The principle of distributing power away from a central point. Blockchains are traditionally decentralized because they require majority approval from all users to operate and make changes, rather than a central authority.

Decentralized Finance (DeFi)

Financial activities conducted without the involvement of an intermediary, like a bank, government, or other financial institution. 

Decentralized Applications (DApps)

Applications designed by developers and deployed on a blockchain to carry out actions without intermediaries. Decentralized finance activities are often completed using decentralized apps. Ethereum is the main network supporting activities in decentralized finance.

Digital Gold

Experts sometimes compare specific cryptocurrencies to real gold based on the way it can store and increase in value. Bitcoin is commonly referred to as digital gold.

Ethereum

The second largest cryptocurrency by trade volume, Ethereum is a crypto network and software platform that developers can use to create new applications, and has an associated currency called ether.

Exchange

A digital marketplace where you can buy and sell cryptocurrency.

Fork

When a blockchain’s users make changes to its rules. These changes to the protocol of a blockchain often result in two new paths — one that follows the old rules, and a new blockchain that splits off from the previous one. (Example: a fork of Bitcoin resulted in Bitcoin Cash).

Gas

A fee that developers have to pay to the Ethereum network in order to use the system. Gas is paid in ether, the native cryptocurrency of Ethereum. 

Genesis Block

The first block of a cryptocurrency ever mined. 

HODL

Stands for “Hold On for Dear Life” though the term originated from a user typo on a Bitcoin forum in 2013. It refers to a passive investment strategy in which people buy and hold onto cryptocurrency — instead of trading it — in the hopes that it increases in value. 

[RELATED]: The Price of Bitcoin Continues to Fall. Here’s How Worried Investors Should Be, According to Experts

Halving

A feature written into Bitcoin’s code in which after a certain number of blocks are mined (typically every four years) the amount of new Bitcoin entering circulation gets halved. The halving can have an impact on Bitcoin’s price.

Hash

A unique string of numbers and letters that identify blocks and are tied to crypto buyers and sellers.

Hot Wallet

A software-based cryptocurrency wallet connected to the Internet. While more convenient for quickly accessing your crypto, these wallets are a bit more susceptible to hacking and cybersecurity attacks than offline wallets — just as files you store in the cloud may be more easily hacked than those locked in a safe in your home.

Initial Coin Offering (ICO)

A way that funds are raised for a new cryptocurrency project. ICOs are similar to Initial Public Offerings (IPOs) of stocks.

Market Capitalization

For cryptocurrency, market cap refers to the total value of all the coins that have been mined. You can calculate a crypto’s market cap by multiplying the current number of coins by the current value of the coins. 

Mining

The process whereby new cryptocurrency coins are made available and the log of transactions between users is maintained. 

Node

A computer that connects to a blockchain network.

Non-fungible Tokens (NFTs)

Non-fungible tokens are units of value used to represent the ownership of unique digital items like art or collectibles. NFTs are most often held on the Ethereum blockchain.

[RELATED] Ethereum: What You Should Know Before You Invest

Peer-to-peer

Two users interacting directly without a third party or intermediary. 

Public Key 

Your wallet’s address, which is similar to your bank account number. You can share your public wallet key with people or institutions so they can send you money or take money from your account when you authorize it.

Private Key

The encrypted code that allows direct access to your cryptocurrency. Like your bank account password, you should never share your private key. 

Satoshi Nakomoto

The pseudonymous creator of Bitcoin. No one knows the true identity of Nakomoto — or if it’s more than one person.

Smart Contract

An algorithmic program that enacts the terms of a contract automatically based on its code. One of the main value propositions of the Ethereum network is its ability to execute smart contracts. 

Stablecoin or Digital Fiat

A stablecoin pegs its value to some other non-digital currency or commodity. A digital fiat represents a fiat, or government-backed currency on the blockchain. (Example: Tether, which is pegged to the U.S. dollar)

[RELATED]: The 10 Most Popular Cryptocurrencies, and What You Should Know About Each Before You Invest

A unit of value on a blockchain that usually has some other value proposition besides just a transfer of value (like a coin). 

Vitalik Buterin

Programmer who invented Ethereum in 2015.

Wallet

A place to store your cryptocurrency holdings. Many exchanges offer digital wallets. Wallets may be hot (online, software-based) or cold (offline, usually on a device).

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Ethereum’s Ether coin is arguably valuable for different reasons than Bitcoin.

“Ethereum derives its value from a number of different factors, including gas fees, its usage as collateral, its ability to be lent and borrowed, its use as a medium of exchange for trading and NFTs [nonfungible tokens], and the fact that it can be staked for interest,” Scott Melker, a crypto trader and the host of The Wolf Of All Streets podcast, told Cointelegraph, adding: “It also has speculative value and is gaining increased attention and interest from institutional investors.”

Ethereum is the network on which its tradable coin, ETH, runs. Ethereum launched in 2015 based on a concept from a programmer named Vitalik Buterin roughly two years prior. In short, Ethereum acts as a platform on which developers can build projects or solutions.

The Ethereum network has become a staple in the crypto space over the years, with many projects based on it. A large number of initial coin offerings used Ethereum in 2017 as a funding vehicle. Crypto assets based on Ethereum’s blockchain are called ERC-20 tokens, although ERC-721 tokens also exist as nonfungible tokens built on the network.

When a project builds on Ethereum, it may come with an asset for use within that ecosystem. That asset would likely be an ERC-20 token. It is not uncommon, however, for projects to switch over to their own mainnet blockchain after launching initially on Ethereum’s blockchain.

Much of the decentralized finance sector of crypto also began on Ethereum, with decentralized exchanges based on Ethereum’s blockchain hosting trading for numerous tokens associated with the niche. DeFi lets participants borrow and lend crypto assets, among other capabilities. As noted by Melker, ETH can play a part in this ecosystem.

Part of ETH’s value relates to gas fees. Whenever a person sends ETH, they must pay a certain amount of the coin to pay for the transaction — a similar concept to the fees users pay when sending Bitcoin (BTC).

A big difference with ETH, however, is that sending ERC-20 tokens incurs gas fees. To send an ERC-20 token, the transactor must also hold ETH in the same wallet to pay for the transaction. Trading on DEXs also comes with gas fees. Someone might buy and hold ETH for gas fees, giving the coin a base level of demand in the market.

During the DeFi boom of 2020, Ethereum’s network saw high traffic, spiking gas fees to exorbitant levels. High transaction fees continued into 2021. Based on data from YCharts, an average ETH transaction cost $39.49 in February 2021 — significantly higher than levels recorded in years prior. A fee of around $1–$2 would be considered normal. “Ethereum Average Transaction Fee measures the average fee in USD when an Ethereum transaction is processed by a miner and confirmed,” YCharts notes on its site.

Speculation may have its part in ETH’s value as an asset. Investors may buy ETH coins as a bet on the Ethereum network’s possible future success and adoption into the mainstream world. ETH’s price could possibly also represent speculation on the success or failure of a portion of the crypto industry, given the number of projects built on the network.

Tyler Winklevoss, co-founder and CEO of the Gemini crypto exchange, expressed this thought process in an interview with Casey Adams, an entrepreneur and podcaster, in December 2020. Winklevoss compared crypto industry innovation to that of the internet, although investing in a small portion of the internet during its early years, other than through roundabout methods, would have proven difficult.

Buying ETH arguably offers that type of fractional investment of a broader developing sector. Winklevoss explained by comparing such a purchase to hypothetical partial race track ownership, which would profit more on activity rather than on individual race results.

“Ether is the same thing for indexing a piece of the Ethereum network, which is a [...] decentralized global computer,” he said. “A lot of people equate Ether to digital oil,” he added. “If you want to get into the crypto game, my suggestion is own some Bitcoin, digital gold, and own some Ether, digital oil, and with those, you have most of your bases covered.”

Eth2 includes the network’s transition to proof-of-stake technology, which hinges on ETH holding at least some level of price value, according to Aditya Asgaonkar, a researcher at the Ethereum Foundation.

“Proof-of-stake operates on the premise that if validators do something bad — if they are trying to attack the system or misbehaving in some way — then they’ll be penalized,” he said during an LA Blockchain Summit panel. “These penalties apply to their stake, which is in the coin ETH, so ETH price has to be, like, greater than zero for the penalties to have any kind of effect in terms of incentive,” he added.

Therefore, validators need a 32-Ether stake to take part in backing the network. Validators that help run the blockchain in a PoS system are paid out for the amount of contribution to the network provided by them. Demand generated by validators accumulating Ether in batches of 32 and the desire to earn yields from staking creates market demand for the coin.

In light of the competitive crypto market, Binance Smart Chain has surfaced as one of the alternatives. The network acts similarly to Ethereum, except BSC uses Binance’s BNB coin for transaction costs instead of ETH, according to Binance Academy’s explanation of BSC.

Other network competitors include Cardano, Neo and many others. Over the years, the prospect of usurping Ethereum’s network has been a hot topic. Surpassing Ethereum in prevalence would be significant, given Ethereum’s wide usage.

Due to the large number of applications, products and services built on Ethereum, it also benefits from something called the network effect. “The network effect is a phenomenon whereby increased numbers of people or participants improve the value of a good or service,” Investopedia explains, adding: “The Internet is an example of the network effect. Initially, there were few users on the Internet since it was of little value to anyone outside of the military and some research scientists.”

“However, as more users gained access to the Internet, they produced more content, information, and services. The development and improvement of websites attracted more users to connect and do business with each other. As the Internet experienced increases in traffic, it offered more value, leading to a network effect.”

Essentially, the more something is used and built on, the more prevalent it becomes, similar to a wave, gaining momentum as it goes. In the case of Ethereum, the network effect means added trust as the platform is well known and prominent.

In the ever-changing world of crypto, assets rise and fall in popularity and price. Over the years, ETH has shown price strength as well as dominance as a platform on which developers can build. Time will tell, however, if a faster and cheaper network will usurp Ethereum in the long run, or if Ethereum 2.0 will scale the blockchain to meet market demand.

Article source

In the latest sign of peak cryptocurrency mania subsiding, a token backed by billionaire Mark Cuban crashed down to zero dollars Tuesday, joining a slew of other hyped-up cryptocurrencies that have crashed over the past month after frenzied trading drove the market to meteoric price highs this year.

A wave of panic selling Wednesday morning drove the price of Iron Titanium, a token Cuban disclosed he owned earlier this week, from a Wednesday high above $64 to less than 0.01% of a penny by Thursday morning after some of its biggest investors started selling the token at high volumes, spooking individual investors and triggering the massive selloff.

Though much more gradual, the prices of several other tokens sporting multi-billion-dollar market capitalizations have similarly crashed over the past month amid a broader crypto-market rout.

After skyrocketing to a $45 billion market cap and becoming a top 10 cryptocurrency virtually overnight last month, Internet Computer has seen its prices tumble nearly 90%.

The token drew widespread praise from analysts and institutional investors, including Polychain Capital founder Olaf Carlson-Wee, but crypto enthusiasts on Reddit have soured on the token during its plunge and blamed "elites" (or institutional investors) for dumping their coins and driving down prices.

Safemoon, another token lauded by the Reddit crowd and social media influencers including crypto-bull Dave Portnoy, has plunged as much as 70% since amassing a $6 billion market cap in mid-May.

Shiba Inu tokens drew massive fanfare for their resemblance to dogecoin, the virtual currency endorsed by billionaire Elon Musk, and though they once held a nearly $13 billion valuation, they've plummeted nearly 75% in value since a peak on May 10.

According to crypto-data website CoinMarketCap, roughly one-third of the world's 100 most valuable cryptocurrencies have plummeted at least 40% over the past month, and a dozen have crashed more than 50%. Only three have added value: Quant, Theta Fuel and Amp—small tokens (subject to extreme volatility) worth $916 million, $2.8 billion and $4.2 billion, respectively.

"I got hit like everyone else. Crazy part is I got out… [Then] Bam," Cuban tweeted late Wednesday about Iron Titanium's crash. The plunging prices exposed a flaw in the token's design that created an arbitrage opportunity, effectively allowing investors to make unlimited money by buying and selling the token, which drove prices down further. “It was a crypto vortex of money,” Fred Schebesta, the founder of fintech company Founder and an Iron Finance investor, told Coindesk. “What happened is just the worst thing that could possibly happen considering their tokenomics.” Reddit traders have also blamed lackluster designs for the plunging prices of Safemoon, Shiba Inu and other formerly lauded tokens, though their crashes have been much less severe.

Established cryptocurrencies bitcoin and ether have struggled over the past month amid regulatory concerns and peaking investor sentiment, but their prices have fared much better than most of their smaller counterparts. Bitcoin is down 11% over the past month, while ether has plunged about 28%. When the crypto market peaked in May, Oanda Senior Market Analyst Edward Moya noted traders were piling into altcoins—or bitcoin alternatives—in a sign of growing speculation. Trading volume surged at the time, consistently totaling more than $300 billion each day. Mania has since cooled, with volume down to less than a third of its peak. 

$1.6 trillion. That's the value of the cryptocurrency market, 63% of which is made up of bitcoin and ether. 

Iron Finance's Titan Token Falls to Near Zero in DeFi Panic Sell (CoinDesk) 

Musk Denies Bitcoin 'Pump And Dump'—And Says Tesla Will Resume Transactions Once This Mining Goal Is Reached (Forbes)

I'm a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism

I'm a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC's Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com. And follow me on Twitter @Jon_Ponciano

Though they're soaring Wednesday, the world's largest cryptocurrencies are still far from their peaks earlier this year as a result of heightened regulatory scrutiny in China and bearish comments from Tesla chief Elon Musk—here's when every top 10 cryptocurrency (save for Tether and USD Coin, whose values are meant to float near $1) peaked this year. 

Anticipation over crypto-brokerage Coinbase's public-market debut helped lift bitcoin to new highs in April, but after the occasion—hailed as a watershed moment for institutional adoption—failed to meet high expectations, the world's largest cryptocurrency struggled to hold on to its meteoric gains.

Amid crypto-mining bans in China and criticism over the coin's massive carbon footprint, bitcoin prices have plummeted nearly 47% from their all-time high on April 14, the day Coinbase debuted on the Nasdaq exchange.

Though Ripple's XRP hasn't surpassed its high from the crypto-trading frenzy four years ago, the volatile token's peak this year also occured on April 14—buoyed by both Coinbase's listing and a judge's favorable ruling in the Securities and Exchange Commission's ongoing Ripple investigation—but its price has plummeted a staggering 65% since.

As investors sold off their bitcoin holdings in the weeks after its peak, many plowed into other top cryptocurrencies, lifting the likes of ether, polkadot, uniswap and binance coin to new highs in early May, as big banks Goldman Sachs and Morgan Stanley started revving up operations in the space.

Some cryptocurrencies also got a boost from billionaire Elon Musk—including his unabashed favorite, "joke" token dogecoin, which surged to a new high on May 8, the day of Musk's highly anticipated Saturday Night Live debut, but has plunged nearly 70% since the self-proclaimed "dogefather" used his airtime to call the digital asset a "hustle."

After days of surging while the broader crypto market started crashing over environmental concerns, Cardano's ada token, which claims to have a much less carbon-intensive mining process than bitcoin, peaked on May 15 and has fallen nearly 45% since, much like the rest of the crypto-market.

Bitcoin and the broader cryptocurrency market soared during the pandemic in light of inflationary concerns and soaring institutional adoption, but prices have plummeted since April, when Tesla—one of bitcoin's biggest corporate investors—disclosed it sold a large chunk of its holdings. Musk, who cheered on the crypto market during its massive rally earlier this year, helped intensify crypto's crash last month by tweeting out that Tesla would no longer accept bitcoin because of its hefty environmental cost—a single development that wiped out more than $300 billion in crypto market value in just hours. Markets have failed to recover since then amid an intensifying regulatory crackdown in China, and the value of the world's cryptocurrencies—at less than $1.4 trillion Wednesday—is roughly half of the nearly $2.6 trillion at its peak on May 12.

“The fall that has taken place since [Musk first soured on crypto] shows just how wild an instrument bitcoin is, how overbought it has become and how influential the Tesla CEO now is in the space,” Oanda Senior Market Analyst Craig Erlam said in a recent note. “I’m not sure any of that is a good thing.”

Regulation. Experts have long warned that heightened government intervention could stunt the crypto market’s massive rally, and the recent mining crackdown in China has proven that. Still, the last time regulatory concerns crashed the market—by more than 80% in 2018—prices managed to bounce back. The market is still up about 50% from its early 2018 peak.  

Major Cryptocurrencies—Including Bitcoin, Ethereum, Dogecoin—Plummet As China Widens Crackdown (Forbes)

Crypto Crash Intensifies As Losses Eclipse $1.3 Trillion Just Two Weeks After Market's All-Time High (Forbes)

Crypto Markets Crash Again After DOJ Seizes $2.3 Million Bitcoin Ransom (Forbes)

I'm a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism

I'm a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC's Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com. And follow me on Twitter @Jon_Ponciano

Most people consider investing or trading in Bitcoin and other cryptocurrencies as intimidating. This is because the cryptocurrency market has been presented to most people as a very technical financial market.

However, that is not the case. You can start trading or invest in cryptos in no time, as long as you follow the right process. Following the right process starts by choosing the cryptocurrency exchange to use. Crypto exchanges are your gateway to the cryptocurrency market. Hence, the reason why they are important.

This guide helps you learn how to choose a crypto exchange and some of the best ones in the market.

What Are Crypto Exchanges?

What Are The Criteria For Choosing Crypto Exchanges?

The Top Four Cryptocurrency Exchanges For Experts And Beginners

How To Use A Cryptocurrency Exchange

Crypto Exchanges are platforms where people can buy and sell cryptos like Bitcoin. You can use the exchanges to trade one cryptocurrency for another — converting Bitcoin to Ether – or to purchase the cryptocurrency using regular fiat currencies like the USD or GBP. These platforms reflect the current market prices of the cryptocurrencies they offer. The users can also convert the cryptos back to fiat currencies on an exchange, giving them the option to withdraw the funds back to their regular bank account or leave it on the exchange platform to trade back into cryptocurrencies later.

There are hundreds of cryptocurrency exchanges available to traders and investors. Hence, making it a tough decision to choose the best ones. However, the criteria outlined below will help you determine how to choose the right cryptocurrency exchange for you.

Conduct your research to determine whether the exchange you are choosing is a legitimate and secure platform. The authenticity and security of a platform will help you determine if your funds would be safe with the crypto exchange. Traders have lost billions of dollars to scam platforms. Hence, ensure you check the reputation of the platform and the various security protocols they have in place to secure your data and funds.

The method of purchasing cryptos varies between platforms. Some platforms support deposits by bank transfer, some use PayPal, others accept credit and debit cards, and some only use cryptocurrency for purchases. Study the various payment options available on the platforms and choose the one most suited to you. For starters, with no coins, it is essential that you choose a platform that accepts fiat currency as it allows you to enter the market with little stress.

Virtually all crypto exchanges support Bitcoin and Ethereum. However, there are thousands of cryptocurrencies, and some investors want to gain exposure to others aside from BTC and ETH. Thus, you have to know the coins and tokens supported by a crypto exchange before you choose one. Binance is the most popular because it grants traders and investors exposure to more cryptocurrencies than other platforms.

The transaction fee structure differs across various crypto exchanges. Understanding the fee structure of a crypto exchange is crucial as it allows you to know what you are dealing with when conducting several activities. Ensure that you choose a platform that doesn’t have hidden transaction fees. You can choose a platform that offers flat transaction rates or those with a more flexible structure.

This criterion is very important to your success as a cryptocurrency trader or investor. An exchange with an intuitive interface and good user experience makes it easier to trade the cryptocurrencies available. However, user experience is subjective, and people enjoy various interfaces. Furthermore, ensure to check the customer service and other customer-related functionalities offered by a crypto exchange. The easier to access the platform, the better.

There are hundreds of cryptocurrency exchanges available to traders and investors. However, these four are some of the leading and most powerful crypto trading platforms in the world.

Binance is considered the most powerful cryptocurrency exchange in the world. With a trading volume above $13 billion per day, Binance is the largest. It also offers traders access to hundreds of coins and tokens as it has one of the largest collections of altcoins in the market. In addition to regular spot trading, Binance offers other services such as staking, derivative trading services and more. Binance is available in over a hundred countries globally, providing crypto trading services to millions of people. Finally, Binance is a good option for anyone who wants more advanced charting than most other exchanges.

Register on Binance here.

Coinbase is amongst the most widely used digital currency trading exchanges, especially for traders in the United States. It is now a publicly listed company and provides services to crypto traders in the US, Europe and other parts of the world. Coinbase processes over $2 billion in trading volume per day. It offers crypto trading services to both retail and institutional traders, with the Coinbase Pro platform specially dedicated to the professional traders and investors. As a publicly-listed exchange, Coinbase offers insured custodial wallets for investors and traders to store their coins. Coinbase is highly secure but doesn’t offer as many cryptocurrencies as Binance.

Sign up with Coinbase here.

Kraken is one of the oldest trading platforms currently in existence in the crypto space. Due to the number of years, it has been around, Kraken is admired by many and provides trading services to thousands of traders globally. Similar to Coinbase, Kraken is looking to become a publicly-listed company. Kraken allows traders to access hundreds of cryptocurrencies, fund their accounts using fiat currencies and cryptocurrencies, and gain access to other cryptocurrency trading services.

Register with Kraken here.

CEX.io is another leading cryptocurrency exchange. Its excellent user interface makes it a good platform, especially for people new to the cryptocurrency world. It allows users to access a wide range of cryptos, including the leading ones such as Bitcoin, Ether, and Litecoin. The customer support on CEX.io is also one of the best in the crypto space

Register with CEX.io here

Using a cryptocurrency exchange is simple and involves a few steps. They are;

Register with the cryptocurrency of your choice.

Provide your name and other correct details and proceed to verify your account in accordance with the AML and KYC standards

Access your cryptocurrency exchange account and fund it using any of your preferred payment methods

Identify the coin or token you wish to buy and swap the deposited funds with the desired cryptocurrency. You can also buy BTC, ETH or USDT with the deposited fiat currency before swapping these cryptocurrencies with your desired coin or token.

If you intend to hold the coins for long, it is best to move them to a cold storage wallet. However, you can leave them on the exchange wallet if you intend to trade the coin.

Cryptocurrency exchanges are central to your success as a trader or investor. Hence, knowing how to choose a crypto exchange is crucial. The above-reviewed platforms are some of the best exchanges available to traders globally.

This article was originally posted on FX Empire

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What do Vladimir Putin and Burger King have in common? 

For starters, they both have a cryptocurrency named after them. Actually, PutinCoin and Whoppercoin might be the only thing they have in common. But their namesake cryptocurrencies are among the thousands of different virtual currencies making up a growing marketplace grabbing investors’ attention.

Cryptocurrencies like Bitcoin and Ethereum have a growing track record of holding and increasing in value over time, though recent dips have wracked the market, while lesser-known cryptos are considered much more speculative and unpredictable. And while PutinCoin and Whoppercoin belong to a category of cryptocurrencies marked more for their absurdity than their potential as either an investment or cryptocurrency, they show just how unique different types of cryptocurrencies can be.

Here’s Where to Start:The Most Popular CryptocurrenciesDecentralized FinanceDigital GoldDigital Cash or Internet MoneySoftware Platforms Stablecoin or Digital FiatMemecoins, and Other Strange Cryptocurrencies

In general, cryptocurrencies can be grouped by utility: What is the purpose of the cryptocurrency? What is its value proposition? What is it for?

“They all have different utilities, they all have different founders who have different visions for where that cryptocurrency is going,” says Mike Uehlein, founder and financial planner of WealthU advisors. Uehlein regularly talks to clients about investing in cryptocurrency. 

The Most Popular Cryptocurrencies

There are thousands of cryptocurrencies, most with very little value and unclear potential. Many advisors recommend investors stick to Bitcoin and Ethereum — if any — and pass on the smaller cryptos. 

Leading cryptocurrency news outlet CoinDesk maintains a Coindesk 20 list of the most popular cryptocurrencies currently being bought and sold. This list includes cryptocurrency assets and networks by their most common names. Some, like Bitcoin (BTC), have one name for both the blockchain network and the cryptocurrency. Others, like Ethereum, are named for the broader blockchain network, but have a different name for their associated native cryptocurrency (Ether, or ETC, in the case of Ethereum).

Updated quarterly, the list ranks cryptocurrencies based on dollar volume and other data from third-party cryptocurrency exchanges, where people can buy and sell different cryptocurrencies.

BitcoinEthereumXRPCardanoStellarUSD CoinChainlinkUniswapPolkadotBitcoin Cash

Note: This list was last updated – using the Coindesk 20 – on July 1, 2021.

1. Bitcoin

As the first cryptocurrency, Bitcoin (BTC) is also the most popular and highly valued, despite high volatility over the course of its history. Bitcoin was initially created to be used as a digital payment system, but experts say it is still too volatile to be used for that.2. Ethereum

Ether (ETH) is the cryptocurrency of the Ethereum network, an open-source blockchain upon which developers can build apps and other cryptocurrencies. It’s also the second largest cryptocurrency by market cap, behind Bitcoin. Ether’s value has risen sharply since its creation in 2013, to nearly $3,000 for one token as of late May, but still lags well behind Bitcoin’s value of nearly $40,000 per coin. 

3. XRP

XRP is the cryptocurrency of the Ripple digital payment network. Built for digital payments, XRP touts itself as a faster and more efficient way to power global payments. Ripple and XRP also allow for third-party development on other uses for XRP.

4. Cardano

Cardano (ADA) uses a technology called Ouroboros, a peer-reviewed blockchain protocol. It describes itself as a more secure and scalable way to maintain decentralization.

5. Stellar

Stellar’s native cryptocurrency is the Lumen (XLM). Stellar is designed as an “open network for storing and moving money” that allows people to create, send, and trade digital money. It’s designed to sell and trade all digital monies, not just Stellar’s own associated cryptocurrency, the Lumen — although you’ll need to own some Lumen to make transactions.

6. USD Coin

USD Coin (USDC) describes itself as “the world’s digital dollar.” Created by a global financial firm called Circle, USDC is the result of work that has been invested in by Goldman Sachs, Baidu, and IDG Capital, among others. USD Coin is tied to the U.S. Dollar, which makes its price much more stable than other cryptocurrencies. That stability lends itself more toward digital payments, while other cryptocurrencies have more potential to increase in value as investments (along with more risk of losing value, of course).

7. Chainlink

Chainlink (LINK) uses “real-world data and off-chain computation while maintaining security and reliability,” according to its website.

8. Uniswap

Uniswap (UNI) is a decentralized crypto exchange that operates on Ethereum’s blockchain. Its developers promise to get rid of unnecessary intermediaries, which it says gives users more control.

9. Polkadot

Polkadot (DOT) says its mission includes allowing different blockchains to exchange information and transactions with one another. Its website plays up data and identity security and users being in control.

10. Bitcoin Cash

Bitcoin Cash is a peer-to-peer electronic cash system, which was the original intention of Bitcoin. The currency allows you to send money anywhere for very low fees.

While each of these top cryptocurrencies is unique in its own way, they all tie into an underlying principle called  decentralized finance (DeFi).

Decentralized Finance 

In its simplest terms, decentralized finance refers to financial activities conducted without the involvement of a traditional bank. 

Think about all of the activities in which you’d normally use a bank or some other financial institution — getting a loan, insurance, investing, even using a credit card. “All of these [activities] are traditional-finance based and have intermediary companies,” says Ollie Leech, learn editor at CoinDesk. “Now people are creating these products in a completely autonomous way with [cryptocurrencies].”

It can seem counterintuitive — where else would you go for a loan, if not an established lender? But that’s one of the appeals to DeFi, says Leech. 

In the same way people have increasingly brought “smart” technology into their homes, proponents say cryptocurrency has potential to automate and digitize more and more aspects of the financial system. The appeal of this happening outside the conventional — or centralized — finance system depends on who you ask. 

Many Americans may not understand the appeal of a finance system that operates beyond government control. But things can be very different in countries with less financial stability, says Roger Aliaga-Díaz, principal and senior economist with Vanguard Investment Strategy Group. If cryptocurrencies offer as much or more stability as a given national currency, it’s an entirely different equation than if your national currency is the safe and stable U.S. dollar.

Just like there are different types of accounts and tools in conventional finance — from savings accounts to investment accounts to credit cards — that are used for different purposes, different cryptocurrencies can have similarly unique uses in this emerging decentralized finance system.

Instead of going to a bank to draw out a loan, you might “go to a decentralized application that’s not owned or operated by anyone in particular,” says Leech. 

Where conventional loans involve humans at a bank who take part in processing, reviewing, and approving loans, a DeFi loan — with funding in the form of cryptocurrency — could run via app on a network like Ethereum with an algorithm processing it. The borrower would put up some cryptocurrency as collateral, which they’d get back minus interest when they repay the loan.

“The code runs autonomously using smart contracts,” Leech says. “So once the developers release the data they’re pretty much hands-off, and everything runs automatically so there’s no intermediary.” 

Ethereum’s website offers a comparison chart contrasting decentralized from traditional finance. Along with these technical differences, a big consideration to keep in mind is that the conventional financial system is regulated to serve the interests of everyday customers, while cryptocurrency and decentralized financial systems are largely unregulated, and subject to governance and oversight only by their creators/users.

Unlike the money kept in a bank account, money you have in crypto may not be FDIC insured. Some exchanges offer this insurance while others don’t — something you’ll want to look into before buying crypto from one or another. For exchanges that don’t offer this insurance, there’s no guarantee you will be repaid if there is a hack or the exchange goes out of business.

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With that in mind, here are some of the broad categories of cryptocurrencies that tend to organize the market.

Digital Gold

Digital gold refers to cryptocurrency comparable to real gold in its ability to store and increase in value. There’s a limited amount of gold on earth, in the same way that digital gold cryptocurrencies have a limited supply. 

“People buy gold not because they expect to be able to go to the store and spend it, but because they expect it to hold its value and maybe, probably, increase in value over time,” says Galen Moore, director of data and indexes at CoinDesk. 

The primary example of a digital gold cryptocurrency is Bitcoin, though that was not its original intention. Bitcoin was originally put forth as an electronic peer-to-peer cash system, but its volatility, among other things, limited its potential for that purpose. 

In use, such digital gold cryptocurrencies are bought and held, “for the same reason people would have diamonds, or some $100 bills, or some gold coins in a safe,” says Moore. Litecoin is another example — it’s been described as silver to Bitcoin’s gold.

Digital Cash or Internet Money

Internet money is exactly what it sounds like — you use it to buy things over the internet. 

Bitcoin was originally intended to be digital cash, but speculation led to the creation of another cryptocurrency, Bitcoin Cash (a variation of Bitcoin). Bitcoin’s price was too volatile for it to be a suitable currency, which proponents for Bitcoin Cash argued was the entire point of the currency to begin with. 

“There was a big debate about what the future of Bitcoin was going to be. Was it gold or was it cash? The people who wanted it to be more like gold won out,” says Moore. The decision was a “turning point for Bitcoin where it really went down to be digital gold.” 

But the group that wanted Bitcoin to remain internet money split off — or forked, in crypto parlance — the currency and created Bitcoin Cash. The network is devoted to digital payments (with faster processing and lower fees). In these ways, Bitcoin Cash is “meant to be cash. That’s the value proposition,” says Moore.

Though Bitcoin Cash is designed and intended for transactions, its price is still volatile and probably not your best option for making or receiving payments. 

Software Platforms  

Ethereum represents another type of cryptocurrency: It operates as a cryptocurrency network and along with its native cryptocurrency, Ether, offers a programmable crypto environment for developers. Similar to how smartphones allow third-party apps to be downloaded and used, Ethereum allows developers to create “dapps” — Ethereum-based apps that tap into the network. 

Investors can buy Ether just like they can buy Bitcoin, hoping it increases in value. Ethereum’s programmable network allows for other, more customizable uses. One example is the creation of NFTs — nonfungible tokens — that caught the attention of people far beyond the cryptocurrency community this year. NFTs are Ethereum-based digital assets, which hold value based on demand and supply on the Ethereum network.  

Stablecoin or Digital Fiat

A stablecoin pegs its value to some other currency or commodity. A digital fiat represents a fiat, or government-backed, currency on the blockchain, says Moore. One of the most popular examples of a digital fiat is Tether, a cryptocurrency whose value is pegged to the U.S. dollar. 

Tether is a system that enables you to have a cash-like currency that is always worth $1 — but only on cryptocurrency exchanges. A digital fiat like Tether comes in handy when you want to quickly move your assets within a cryptocurrency exchange. For example, if you think the market for smaller, more unpredictable coins is going to crash, you might put your money in a stablecoin like Tether, and then buy back at a lower price after the crash, says Moore. 

Stablecoins enable the exchange to flow better, says Moore. Taking the previous example, you could theoretically cash out your smaller coins for actual dollars, and then reinvest those dollars after the crash, but it could take days to convert your coins into dollars and back again, says Moore. 

Memecoins, and Other Strange Cryptocurrencies

There are thousands of cryptocurrencies available. Many of them have little to no value, and no discernable value proposition, which lands them in the category of memecoins. Experts recommend avoiding investing in this category of coins and sticking with more well-known options like Bitcoin or Ethereum, if you decide to invest in crypto at all. 

Whoppercoin and PutinCoin fall into this category of cryptocurrencies, as does another famous memecoin of recent fame: Dogecoin. While Dogecoin has seen a rise in demand — and thus value — in recent weeks, it still is highly volatile, as evidenced by its drop in value when Tesla CEO Elon Musk made it the subject of a joke on a recent episode of “Saturday Night Live.”

Any cryptocurrency that’s not Bitcoin is referred to as an “altcoin.”

Bitcoin, Litecoin

Bitcoin Cash, XRP

Ethereum, Cardano, Polkadot

Tether, USD Coin

Dogecoin, PutinCoin, Whoppercoin

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Reported by Nina Bambysheva, Michael del Castillo and Steven Ehrlich

The meteoric rise of bitcoin - from $10,000 since last year’s list to an all-time high of $65,000 this April –  and other major cryptocurrencies over the past few months secured a record eight spots on this year’s Fintech 50 list for blockchain and cryptocurrency focused companies. The ensuing wave of institutional adoption also brought hordes of capital to crypto startups, giving birth to new crypto unicorns (companies with a $1 billion plus valuation) and signaling a ‘coming of age’ for the industry.

First-time members include crypto lending platform BlockFi, which scored a $350 million investment, the third largest venture round ever among crypto startups, in March at a whopping $3 billion valuation, and Paxos, a blockchain infrastructure company best known as the partner for PayPal PYPL and Venmo’s crypto brokerage services, providing access to bitcoin, ether and a handful of other major cryptocurrencies to more than 350 million customers. 

Other debutants include leading cryptocurrency custodians Anchorage and Fireblocks. As more corporations and institutional investors awoke to the crypto disruption and engaged in amassing sizable bitcoin positions, crypto custody services saw a massive spike in interest. In January, Anchorage became one of the first crypto-native firms to be granted a conditional national trust bank charter by the Comptroller of the Currency, while Fireblocks saw a 2023% growth over the previous year, having transferred over half a trillion dollars in digital assets since launch in 2019. 

Amid the novel non-fungible token (NFT) frenzy, San-Francisco-based Alchemy emerged as a new breed of fintech leaders. Alchemy’s technology powers just about every major NFT platform, including OpenSea, Nifty Gateway, and NBA Top Shot, connecting users to the Ethereum blockchain, on which most non-fungible tokens, or digital collectibles, are built. 

But the veterans are still going strong. Cryptocurrency investigation and compliance company Chainalysis, previously included in the 2018 and 2020 iterations of the Fintech 50 list, achieved a unicorn status in November after closing a $100 million Series C financing round. Chainalysis could be dubbed as “the guardian of crypto” as it is helping government agencies in 50 countries analyze blockchain data to investigate illicit transactions and ensure compliance with anti-money laundering regulations. 

One notable graduate of the list is Coinbase, the largest cryptocurrency exchange in the United States, which shook the industry and public markets with its April 14 Nasdaq debut – the largest direct listing in history. At one point during the opening day, Coinbase’s market cap exceeded $100 billion, setting a high bar for crypto startups still eyeing a public offering. Two of this year’s members, Kraken and Gemini (also cryptocurrency exchanges), have discussed going public in the future. 

But fintech is no longer just a tale of corporate success. Cryptocurrency lenders and exchanges are slowly giving way to the new hot shot of the class - decentralized finance (DeFi). An umbrella term for blockchain-based applications and protocols aiming to replace traditional financial intermediaries like banks and brokerages, DeFi skyrocketed in popularity and market capitalization over the past 12 months – from just over $1 billion in locked value in June 2020 to the current $67.9 billion. The largest among DeFi platforms are lending and borrowing protocols, such as Aave and MakerDAO, and decentralized exchanges like Uniswap and SushiSwap – all built on Ethereum. DeFi’s rise contributed to the surge of ether, Ethereum’s native cryptocurrency, which hit an all-time high of over $4,000 earlier in May. Although ineligible for the Fintech 50 list because of their composition, they deserve recognition for their success and ingenuity.

Alchemy

Headquarters: San Francisco, CA 

Sometimes called an Amazon Web Services for crypto, the company’s user interface lets non-coders write and read info on a blockchain. Alchemy provides the service for free to some clients, but charges $49 a month and up to others. Users include traditional organizations like PwC and UNICEF and crypto players like Dapper Labs, creator of the Flow blockchain. 

Funding: $96 million from Coatue, Addition and Pantera and individual investors such as Charles Schwab, Peter Thiel, Reid Hoffman, Jay Z and Will Smith. 

Latest valuation: $505 million

Bona fides: Despite having just 22 employees, its infrastructure has been used for $30 billion in transactions and has been key to the NFT explosion. 

Cofounders: CEO Nikil Viswanathan 33 and CTO  Joseph Lau, 31

Anchorage

Headquarters: San Francisco, CA 

Regulated custodian offering institutions lending, trading, financing and staking of crypto. In January, Anchorage, a South Dakota trust company, became among the first crypto-native firms to be granted a conditional national trust bank charter by the Comptroller of the Currency.

Funding: $137 million from Andreessen Horowitz, Blockchain Capital, the sovereign wealth fund for the Singapore state government and others

Latest valuation: $520 million, according to Pitchbook

Bona fides:  Working with partner (and investor) Visa V , served as custodian for first stablecoin payment on the Visa network 

Cofounders: CEO Nathan McCauley, 35 and President Diogo Monica, 35

BlockFi

Headquarters: Jersey City, NJ

Fashioning itself as a crypto wealth manager, BlockFi offers its 300,000 account holders crypto-collateralized loans at interest rates as low as 4.5% and up to 8.6% annual return on their crypto holdings via interest-bearing accounts. The four-year old startup is also preparing to launch a bitcoin-reward credit card.

Funding: $504 million from Tiger Global Management, Susquehanna Government Products, Pomp Investments and others

Latest valuation: $3 billion

Bona fides: Over the past year, assets under management have grown from $1 billion to $20 billion, while monthly revenues have jumped from $1 million to more than $45 million and its workforce has expanded from 75 to 500. 

Cofounders: CEO Zac Prince, 34, and SVP of operations Flori Marquez, 29, a member of the 2021 Forbes 30 under 30 list

Chainalysis:

Headquarters: New York City

This blockchain analysis pioneer with 200-plus employees helps governments and businesses in 50 countries analyze blockchain data to investigate illicit transactions and ensure compliance with anti-money laundering and know-your-customer regulations. 

Funding: $266 million from Addition, Accel, Benchmark and others

Latest valuation: $2 billion

Bona fides: Has 350 clients including the IRS, Gemini, Barclays and Square SQ .

Cofounders: CEO Michael Gronager, 50; Chief Strategy Officer Jonathan Levin, 31; and  former CTO Jan Moller, 49

Fireblocks:

Headquarters: New York City 

This cryptocurrency institutional custody startup is already helping more than 250 clients, including BNY Mellon, Revolut and other banks, fintechs, exchanges and hedge funds store and transfer a wide variety of digital assets. It both serves as a custodian and helps larger institutions establish in-house custody services.  

Funding: $179 million from Coatue, Ribbit, Silicon Valley Bank and others

Latest valuation: $700 million

Bona fides: Has already transferred nearly $700 billion in digital assets since launching, reflecting a 2023% increase over the previous year.

Cofounders: CEO Michael Shaulov, 38 and CTO Idan Ofrat, 39

Gemini:

One of the earliest crypto exchanges, it has grown to 350 employees and now conducts some $30 billion in transactions annually. As a licensed and regulated New York trust company, it’s well positioned for growing institutional adoption of crypto. Recently expanded into non-fungible tokens with the purchase of Nifty Gateway, now the largest NFT exchange. 

Latest valuation: $5 billion

Bona fides: As of late March, Nifty Gateway had sold $132 million of the $188 million worth of such work bought by collectors

Cofounders: CEO Tyler Winklevoss, 39 and president Cameron Winklevoss, 39, twins made famous for early legal battle with Mark Zuckerberg over the idea for Facebook. 

Kraken

Headquarters: San Francisco, California 

Second largest cryptocurrency exchange in the U.S. by transaction volume. Became the first U.S. cryptocurrency firm to receive a banking charter, obtaining a Special Purpose Depository Institution license in Wyoming, and plans to open Kraken Bank and provide accounts to current clients  this fall. Also operates reference rate and index provider, CF Benchmarks, which is used to display prices or price derivatives and indexes by Bloomberg, CME Group CME , and Nasdaq, among others.

Funding: $32 million. Also, undisclosed private equity round in April 2021

Latest valuation: Shares are trading in private markets at an implied $20 billion valuation 

Bona fides: Processed more than $230 billion in trading volume as of May 3. Average daily derivatives volume of $690 million 

Cofounder and CEO: Jesse Powell, a Cal State philosophy major whose first venture helped online gamers manage in-game currencies

Paxos

Founded (as itBit) way back in 2012, the blockchain infrastructure provider has quietly built a backbone for Paypal and Venmo’s crypto brokerage services that allows their customers to buy, hold and sell bitcoin, ethereum and a few other cryptocurrencies directly from their accounts. Additionally, Societe Generale, Credit Suisse and Nomura Instinet use Paxos’ blockchain-based service to settle trades directly with each other, without the traditional intermediary, the National Securities Clearing Corporation (NSCC)

Funding: $537 million from PayPal Ventures, Declaration Partners and others

Latest valuation: $2.4 billion

Bona fides: More than 100 institutional clients 

Cofounders: CEO Charles Cascarilla, 44 (a former Goldman Sachs financial analyst) and CEO Asia Rich Teo, 41

I report on cryptocurrencies and emerging use cases of blockchain. Born and raised in Russia, I graduated from NYU Abu Dhabi with a degree in economics and Columbia

I report on cryptocurrencies and emerging use cases of blockchain. Born and raised in Russia, I graduated from NYU Abu Dhabi with a degree in economics and Columbia University Graduate School of Journalism, where I focused on data and business reporting. 

By Richard Eisenberg, Next Avenue Editor

Until now, we've never published a Next Avenue article about cryptocurrency or Bitcoin or the blockchain and, as the editor of our Money channel, I'm the reason why.

Frankly, I've felt that the Bitcoin digital currency and other cryptocurrencies were, at best, extremely volatile and risky investments (did I mention the price of a Bitcoin coin went from $10,764 in September 2020 to $64,829 in April 2021 and is now down to $40,000?) and, at worst, sometimes sketchy. I figured the cryptocurrency craze would fade. I was wrong about that last part.

So, here are the basics on the blockchain and Bitcoin and how to invest (just a little!) in cryptocurrencies, pulled from the new episode of the "Friends Talk Money" podcast I co-host with personal finance writer Terry Savage and public media's MoneyTrack host and Wealthramp.com founder Pam Krueger. (You can download the podcast from your favorite podcast distributor.)

Fact is, lots of smart financial analysts — like Ark Invest's Cathie Wood — have become big believers in cryptocurrency.

Some have come around to become, if not crypto fans, then at least no longer deniers. In 2018, legendary investor Warren Buffett called Bitcoin "probably rat poison squared." But his company recently put $500 million into Nubank, the parent company of the digital bank selling cryptocurrency products.

And why should you care about Bitcoin and the blockchain?

Well, the GlobalData analytics company just predicted that revenue from blockchain platforms and services will soar from $4 billion in 2020 to $199 billion by 2030. According to a survey by Motley Fool's service The Ascent, 21 million Americans — 14% of adults — own Bitcoin, which has been around since 2009; half of them bought it during the last 12 months. And, for what it's worth, El Salvador just became the first country to adopt Bitcoin as legal tender, and the payment app Venmo now lets customers buy or sell cryptocurrencies.

"I see the blockchain technology on which cryptocurrency is built as being transformative," Krueger said on the podcast. Some compare the impact of Bitcoin on the financial world with the way the internet disrupted music and publishing.

Krueger said that a year ago, when she asked Wealthramp's 250 fee-only advisers whether they'd recommend clients invest in cryptocurrencies, "almost all of them said, 'Not yet.'" But she surveyed them in June 2021 "and I would say that there's a shift in the mindset of the whole group." In other words, they now think their clients should consider owning a little crypto if they're interested.

For a primer on all this, let me try to make crypto less cryptic by offering a few questions that may be on your mind and answers to them.

What is the blockchain, what is Bitcoin and what is cryptocurrency?

Here's how Savage explained them on the "Friends Talk Money" podcast:

"The blockchain ledger is a computer program. Think of it as the behind-the-scenes backbone where all [financial] transactions are securely recorded without any intermediaries in a ledger that every participant can see, but no one can change unless by an authorized transaction recorded on this blockchain," said Savage.

Savage conceded that definition might sound "clear as mud," so she offered an analogy that might help.

"When you buy a house, you get title insurance to make sure that no one else has filed a claim to the property. And that's why we have title insurance companies and we pay a fee to them," Savage noted. "But if all the title changes were recorded on the blockchain, there would be no need for this insurance or for the title insurance companies… The registration would be immutable and visible on the blockchain ledger."

With the blockchain's peer-to-peer transactions, she said, you don't need a financial intermediary, a bank, a currency exchange or even a government. "Think about the implications of that kind of medium of exchange," said Savage.

And what does this have to do with Bitcoin, Dogecoin (a meme-inspired crypto), Ethereum (billionaire investor and "Shark Tank" star Mark Cuban is a fan) and other cryptocurrencies?

Savage said: "You could use this blockchain ledger technology as a basis for all kinds of completely secure transactions, like property transactions. But the most popular use is with the so-called cryptocurrencies like Bitcoin." Bitcoin records transactions in the blockchain.

There are thousands of other cryptocurrencies, Savage added, but "many of those are started by complete scammers." Consumers lost almost $82 million in crypto scams during the fourth quarter of 2020 and the first quarter of 2021, according to the Federal Trade Commission.

So, how do you buy cryptocurrencies — if you dare?

Savage's first rule: "If you're going to buy a cryptocurrency, stick with the best-known ones [like Bitcoin]. That doesn't mean you won't lose money on the price fluctuations, but it means you're not just throwing your money into a black hole."

And that led to another of Savage's rules: Buy cryptocurrency on a legitimate crypto exchange like Coinbase or Kraken, or through an ATM that sells it — though ATM fees to do so are steep. (Coinbase isn't that machine in supermarkets where you exchange your loose change for bills, I joked on the podcast; that's Coinstar.)

Alternatively, you could invest in a blockchain Exchange Traded Fund (ETF) that either invests in companies involved in blockchain technology or invests in futures or options pegged to the performance of cryptocurrencies like Bitcoin or crypto investment products from asset managers.

Is buying Bitcoin investing or speculating?

It's a speculation, since there's no intrinsic correct value for it. Bitcoin is worth what people decide it's worth each day.

But there seems to be strong long-term potential for a rise in Bitcoin's value, since businesses like banks, Microsoft MSFT and Tesla TSLA accept it (CEO Elon Musk's musings on Bitcoin often lead to wild fluctuations) and it looks like more will, over time. And, as Savage noted, the Federal Reserve is studying developing a digital currency.

How big a portion of my investment portfolio should I put into Bitcoin or other cryptocurrencies or businesses related to them?

Here's what Kraken.com Chief Product Officer Jeremy Wells told the "Friends Talk Money" hosts: "I just generally encourage everyone to kind of explore the space a little bit. There's no need to put an entire paycheck into cryptocurrency."

So, the "Friends Talk Money" co-hosts said, maybe you might put 3% of your total portfolio into crypto; maybe less. I'm starting to think of it as a new way to diversify your investment portfolio, the way you might do with your stocks by buying international stocks of companies in countries with emerging economies.

Incidentally, you don't have to buy an entire Bitcoin. Crypto exchanges let you purchase a fraction — even as little as $5 or $10 worth.

But think of this type of investment as money you can lose — and very well might. Mad money meet mad crypto.

Dennis Chookazian, a futurist and longtime cryptocurrency analyst, told "Friends Talk Money" that Bitcoin and its ilk are "entertainment assets" that provide "psychic income."

His advice: "You shouldn't buy it with any money that you need for your children's education or something like that…You should not buy cryptocurrencies with money that you absolutely can't afford to lose."

Krueger calls investing in cryptocurrencies "emotional gambling," adding that "anytime you put money into something based on your emotions, it's the fastest way to lose money."

But, she noted, "it's kind of fun to learn about." And, Krueger said, she owns some Bitcoin and digital tokens Ethereum and Cardano.

Next Avenue is public media’s first and only national journalism service for America’s booming older population. Our daily content delivers vital ideas, context and

Next Avenue is public media’s first and only national journalism service for America’s booming older population. Our daily content delivers vital ideas, context and perspectives on issues that matter most as we age.

Coinbase continues to take its altcoins and DeFi listing spree one step further every other day. Today, the San Francisco-based exchange announced a slew of other tokens its exploring to add support for.

After adding FTX (FTT) and Serum (SRM), Coinbase Custody that offers features such as staking, governance, and decentralized finance (DeFi) and serves institutional clients across the Asia-Pacific region, announced a total of 39 new digital assets that are up for listing.

Coinbase’s crypto custodian has released the latest list of all the digital assets that it is exploring for listing, including some known DeFi tokens and some unknown ones that are heard for the time here only.

Aave (AAVE), Amp (AMP), Ampleforth (AMPL), Ankr (ANKR), ArCoin (ArCoin), Audius (AUDS), Barnbridge (BOND), BitTorrent Token (BTT), Centrifuge (RAD), Conflux Network (CFX), Curve (CRV), DFI.Money (YFII), Elrond Gold (EGLD), JUST (JST), JUST Stablecoin (USDJ), Meta (MTA), MovieBloc (MBL), mStable (MUSD), Neo (NEO), Nervos (CKB), Nexus Mutual (NXM), NKN (NKN), NuCypher (NU), Ontology (ONT), Paxos Gold (PAXG), Paxos Standard (PAX), Reserve (RSV), Reserve Rights (RSR), Request Network (REQ), Skale (SKL), SUN Token (SUN), tBTC (TBTC), Terra (LUNA), The Graph (GRT), Tron (TRX), VeChain (VET), WING (WING), WINK (WIN), and Wrapped Bitcoin (WBTC).

Some of these tokens like WBTC have already been supported on Coinbase’s other platform Coinbase Pro.

According to Coinbase, support for any digital asset is subject to its “significant technical and compliance review,” which in some cases may also be subject to regulatory approval in some jurisdictions.

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My name is Adrian Jonklaas, and I am an entrepreneur and angel investor based out of Vancouver, BC. This post is about a particular technology which also piqued my interest as a business and financial advisor. Question: what asset appreciated the most in 2016? The answer is not the Dow Jones, the S&P 500, emerging markets, gold, or any of the other traditional asset classes. It is the digital asset called bitcoin(which uses the three-letter identifier, “BTC”). Did you know bitcoin is classified as a commodity by the Commodity Futures Trading Commission? The following chart shows the performance of commodities in 2016. For reference, the Dow Jones was up ~15% in 2016 and Russia’s RTS index — the best-performing equity index globally — rose 52% in 2016. Around Christmas 2016, Boris Mann and I — who are doing a deep dive into blockchain technology as part of a broader exploration of frontier and emerging technologies that are going to shape industries and define businesses over the next ten years — discussed this incredible appreciation in bitcoin. We also came to the conclusion that this seemed like an ideal entry point into the Ether market. Ether (which uses the three-letter identifier, “ETH”), like its big brother, bitcoin, is a digital asset. Both bitcoin and Ether are cryptographic tokens that “fuel” the Bitcoin and Ethereum platforms respectively. Given a number of initiatives slated for Ethereum in 2017 (Metropolis, Mist, Swarm, broader programming language development and support) Boris noted the network effects as adoption amongst developers of decentralized applications (“dapps”) on the Ethereum platform increased — hence boosting demand for ETH with end users, since ETH are required to run the dapps, and therefore conceivably increasing the value of ETH. “Woah! What was that?!” I hear some of you saying. Hang in there! I know I may have thrown out a lot of unfamiliar words and concepts in the preceding paragraphs. Just follow along as best you can, and I promise to explain everything, if not today, then over the next few posts. This is exactly why I am blogging about blockchain technology: so I can educate myself as I endeavour to break it down for you. So after my chat with Boris, I spent about 5 minutes looking into the onboarding process — answering for myself: how do I buy ETH? For a slightly neurotic person like me — especially when it comes to participating in something new — the onboarding process seemed intimidating or at least like something that would take an hour or more. I would have to research wallets (where to securely store bitcoins and Ether), download and potentially configure software, figure out how to transfer fiat currency to the wallet and/or an exchange; most of all, I would have to allay the (irrational?) fear that I would be turning money into electrons that would flit away down a wire, potentially forever lost. The last point, in particular, was not something I was ready to deal with. Believe it or not, it took me months before I made my first online purchase in the Year 2000. In any case, at the time, I was busy editing my Sci-Fi novella (“2030 ET: Tribulation”), so I gave buying ETH a pass thinking I would invest in ETH later in Q1 2017 when I had a bit more time to look into the technology and dispel any doubts I had. The chart below shows Ether price appreciation from Christmas 2016 through February 20, 2017. Source: https://www.coingecko.com/en/price_charts/ethereum/usd/60_days Needless to say, I am kicking myself for not making a significant investment into ETH over Christmas! Over this period, Ether rose from USD 7.50 per ETH to USD 12.75. For an angel investor, whose target (as determined by the average returns to angel investors in the seminal study by Rob Wiltbank and Warren Boeker) is 27% IRR over an average holding period of 3.5 years, that’s a big miss. And guess what? It turns out, with just a credit card and an app — Coinbase — it is super simple to buy ETH, even without understanding anything about Ethereum or blockchain. So what exactly are bitcoin and Ether? And why did they appreciate so significantly to make them the best performing (digital) assets? Are they money? A store of value? And /or do they have inherent utility in of themselves? This is the first of many blog posts on Bitcoin and Ethereum (the platforms that are “fuelled” by bitcoin and Ether respectively) and the underlying technology, blockchain, that both are built on. Over the course of the next few weeks and potentially months (blockchain is a huge topic; the rabbit hole runs deep!) I hope to research and answer the above questions as well as many more. To start with, for today’s post, I endeavour to provide a simple answer to the question: What is blockchain? There are people far smarter than me who have written extensively on the topic. As such, at the end of this section I will point you to several resources I found useful in understanding blockchain which you can dig into. For now, here is a short summary in layman’s terms: Unlike data in a cloud, which is controlled (monitored/censored/etc.) by an entity (e.g. Amazon, Google, Microsoft, a Government), the data in the blockchain database is available to everybody. The fact that every single node — a software application running the blockchain, which can be downloaded and installed by anybody (for a public blockchain at least) — contains a full copy of the database prevents the most egregious misuses of data: censorship and falsification of data. Think about it: data cannot be censored if it is everywhere (no cloud servers to shut down). You can falsify the data within your database (and the ones you control); but nobody else will accept it as true if it does not match the data in the 1,000s of copies of the database outside your control. In the Bitcoin application of blockchain, each block stores a “ledger” with changes in balances to bitcoin accounts (transactions). There is no (good) reason that the blocks could not store other data within; for example, you could record non-monetary transactions such as titles to land or even a record of weddings, births, and deaths. “Namecoin,” which was the first “fork” (copy and modification) of the Bitcoin blockchain, contains blocks which register and record ownership of .bit domain names creating the first censor proof DNS. Blocks in different implementations of blockchain can store other types of data e.g. blocks in the Ethereum implementation store either “ledger” data or small computer programs (smart contracts) which run on an operating system called the Ethereum Virtual Machine. Each block also has information about itself in a header: how big is the block (in bytes), a hash (a cryptographic fingerprint) of all the data (transactions) in a block and a timestamp amongst other meta-data. There is one additional very important piece of information the block header contains: a unique identifier to the previous block (the hash of the previous block’s header). Imagine three blocks. Block 3 contains a hash of the header of Block 2 (a unique fingerprint that identifies Block 2). Block 2 contains a hash of the header of Block 1. If we change information contained in Block 1, for example, divert a transaction of bitcoins to an address we control, then the hash of the header of Block 1 would change (since the header itself contains a hash of the contents of the block). Note: with cryptographic hash functions, the change of a single bit of content creates a totally different fingerprint. That one change creates a cascade of changes. The hash of the header of Block 2 will change because it contains a hash of the header of Block 1. The hash of the header of Block 3 will also change because it contains the hash of the header of Block 2. Generalized, a change to the contents or header of any block changes all the blocks that come after it in the blockchain. Mind you, making changes to the content of a block is not easy since the block has to be cryptographically signed (with a hash). By design, it requires significant computing power to solve the cryptographic problem involved with the hashing. This process is called mining. Currently, it would take hundreds of years for a top-spec desktop PC and graphics card to mine a block. However, statistically, given all the computing power devoted to mining around the world, it takes on average 10 minutes to mine a block. Again, this is by design, with the difficulty of the cryptographic problem increased according to the hashing power added to the Bitcoin mining network. In practical terms, a mischief maker who wants to divert bitcoins to his own account, would be in a race to change all the three blocks and add a fourth block, Block 4, before other miners add Block 4 to the chain (an act which confirms the previous history of transactions contained in the chain). The longest chain rule is part of the consensus mechanism built into the Bitcoin blockchain where nodes are required to build on the longest chain and ignore shorter chains. The probability of mining all three blocks and adding a fourth before other miners add the fourth would be analogous to winning the Powerball lottery four times in a row, so is “zero” for all intents and purposes, meaning it would be impossible for the mischief maker to win the race. The only possibility of abuse is if 51% of the miner network is controlled. To me, this is the first truly magical property of blockchain; its immutability. This linking of blocks goes back (in time) to the first block mined by Satoshi Nakamoto, the (anonymous) person who proposed and launched the first blockchain, Bitcoin. In my next post I will examine, the second magical property and key innovation of Satoshi Nakamoto, discussed in his (her?) famous 2008 whitepaper, which is the consensus mechanism that allows Bitcoin to function in a “trustless” manner (where it doesn’t matter what the intentions of the people who use the blockchain; they simply cannot steal or cheat without extreme effort). That discussion will be part of an examination of different types of blockchains (public and private) and applications of each. A history of blockchain in the context of the evolution of centralized databases that blockchain is designed to replace; this explains the rationale as to why blockchain -ethereum-s-future-cd8451eb421e#.7vc5dm5a2 While “gentle,” this guide does go into more depth than my introduction to blockchain ckchain-technology/ This is an excellent video by Anders Brownworth that explains some of the key technical concepts of blockchain (hashes, blocks, blockchains, distributed peer-to-peer network): https://anders.com/blockchain/ As a CFA charterholder, I always have one eye on the markets. Markets post the global financial crisis of 2007–2008 have truly scared me because I have failed to understand them. So much fiat money has been (effectively) printed (in Western economies primarily) through quantitative easing; while the world has not seen price inflation in consumer goods the world has seen price inflation in financial assets (e.g. the second longest equity bull market in US history) in part fuelled by this loose monetary policy. Naturally, to see bitcoin and Ether as top performing assets intrigued me as a financial analyst. But more significantly, my deep dive into the underlying technology has opened my eyes to the potential of decentralized money; where its “supply” and “worth” are not controlled or influenced by central authorities. A final thought: bitcoin was v1 of a decentralized form of money and of blockchain; Ether is v2 (by virtue of introducing “smart contracts” to blockchain on top which decentralized applications can be built). Both are wonderful, and both have their flaws. In my next posts, I hope to shed some light on these topics including what I think is required of a v3 digital currency. Thanks for reading my first blog post on Medium. Feel free to comment! By clapping more or less, you can signal to us which stories really stand out.

At Binance, we believe in increasing the freedom of money for all. When it comes to your tokens, you should be in control. That’s why we launched Project Token Canal, which lets you transfer your tokens from other chains to Binance Smart Chain, and vice-versa, via the magic of wrapped tokens.  What Are Wrapped Tokens?   Wrapped tokens are token assets, hosted on a blockchain, that are pegged in value to the assets they represent. This allows users to transfer their tokens from one blockchain to another, expanding the utility of the tokens to work on multiple networks.  Why Use Wrapped Tokens? Previously, for example, if you owned Bitcoin, there was no way to use it on other blockchains. But what if you wanted to earn a higher yield on your Bitcoin through yield farming or other DeFi innovations? That’s where tokenized Bitcoins come in. The most popular use case for tokenized Bitcoin is to “wrap” them into Wrapped Bitcoin (WBTC). This extends Bitcoin’s utility, giving it more functionality depending on which blockchain the token is running on.  The popularity of wrapped tokens have helped power the DeFi ecosystem. On Ethereum, the total market value for wrapped BTC tokens alone exceeds $1.8 billion. In fact, over 0.6% of all minted Bitcoin are wrapped, a number that is steadily increasing.  Introducing BTokens: Wrapped Tokens from Binance We wanted to bring our own take on wrapped tokens with Project Token Canal. When we announced Project Token Canal, we initially supported BTC, BTC BEP2, and BTC BEP20 deposits and withdrawals, allowing users to move tokens between Binance Chain and Binance Smart Chain. Within weeks, we expanded support to over 30 tokens.  Now, we’re going one step further with BTokens, which expands upon the original vision of Project Token Canal. With BTokens, you can convert your crypto assets onto Ethereum, and explore a new ecosystem of decentralized apps and projects.  Easily convert your tokens to Ethereum with BTokens The first batch of BTokens include BTC, DOT, FIL and WRX. Once wrapped, they are converted into BBTC, BDOT, BFIL, and BWRX, which are ERC20 versions of the underlying (original) asset. We’re also supporting the deposit and withdrawal of BTokens on Binance.com. If you want, you can move these tokens outside of Binance.com, and onto the Ethereum network, giving you more control over your assets.  Because these BTokens are issued by Binance and guaranteed via a verifiable 1:1 peg with native assets, you can trust that these tokens maintain their value when moved from one blockchain to another. In addition, these BTokens are covered by the SAFU fund.  Further bridging the CeFi and DeFi ecosystems   DeFi promises to give users control over their assets, so interoperability is key. That’s why we made Binance Smart Chain 100% backward compatible with the Ethereum network. With BTokens, we’re doing the same for your tokens, giving you an additional level of freedom over your crypto assets. So far, we’re seeing fast adoption of BTokens from users around the world. Recently, BBTC was listed on Cream Ethereum Platform and ForTube, and there’s already a total of $350 million worth of BTokens on Binance Smart Chain.  We look forward to sharing more exciting news with you on Project Token Canal, which is part of our larger initiative to bridge various blockchains so anyone can freely turn their assets into wrapped tokens, and maximize the utility and value of their crypto holdings.

Cloud Token is not just any ICO. Founders Asaf Zamir and Gilad Somjen are revolutionising cloud services by building the Crowd Cloud.Monetized by Ethereum based Cloud Tokens, the Crowd Cloud will enable anyone to donate their unused computing power and earn a continuous income. Any device that connects to the internet can be usedComputers, laptops, and smartphones, and even IoT devices like washing machines!By decentralising cloud services, millions of people around the world will be able to access professional cloud services at a fraction of the cost.The goal is to create a decentralized peer-to-peer cloud-based ecosystem that will enable millions of people globally share, operate and get the financial benefits from any cloud service and application directly between them in a trusted and efficient manner; from music to social insurance and investment services, in a wholly secure and private environment. We call it the Crowd Cloud. Asaf Zamir, Co Founder and CTOThis ICO is unlike any other. Theres no waiting period; tokens can be be used as soon as the ICO ends. AWS and Azure cloud services can be purchased with a 50% cost reduction. They can also be bought, sold, and exchanged for other currencies (Bitcoin, Ether, USD) within the Cloud Wallet.Cloud Token is the first ICO allowing purchases with credit card and wire payments (not just Bitcoin and Ether). Tokens cant be mined, and token amount will not increase post ICO. Any tokens owned by employees and management are locked for a 12 month period after the ICO closes, demonstrating full investment to the project.The ICO ends on the August 25th, 2017, with pre order bonuses available. With an immediate 50% reduction on AWS and Azure services, tokens will be in demand after the ICO ends.The company seeks to raise up to USD 300 million for the execution on its business plan. The use of proceeds will be predominately for the global deployment of the Grid Node global infrastructure (see Whitepaper sections Use of Proceeds and model shown in Grid growth expectations).With Vitalik Buterin (creator of Ethereum) providing support on Twitter, this is definitely an ICO to watch. You can stay up to date with the Cloud Token journey with Asafs vlog, and other social media channels.TwitterFacebookLinkedInMediumOriginal Article was posted on our blog which you can find here: ionary-ether-token-decentralizing-the-cloudFeel free to Re-Steem, Upvote & Follow me On Steemit / Facebook / Twitter / ADZbuzz /Pinterest / Website Checkout my other Related Post: Will WCX Be The Next Biggest Digital Currency Exchange?The All New Decentralized Microtasking on The Ethereum NetworkFree Steem On Complete Autopilot When You Visit This Faucet!

Since last August, the Simple Ledger Protocol (SLP) has become a prevalent application within the Bitcoin Cash ecosystem. So far theres been thousands of SLP tokens created, a number of which have been very popular and used regularly. Tokens have been issued by governments like Liberland, theres a new SLP stablecoin backed by USD, a city-token being built for Dublin, Ohio and trading platforms like Coinex and Altilly have begun to list SLP-based tokens. Also Read: SLP Developers Publish Specs for a Unique Type of Non-Fungible Tokens Bitcoin Cash Tokenization Matures With the Simple Ledger Protocol The token universe on the Bitcoin Cash blockchain is growing and since last year theres been close to 2,700 tokens created using the Simple Ledger Protocol framework. All of the tokens created using the protocol can be queried using the SLP explorer called Simpleledger.info or a block explorer that supports the SLP type standard.Bitcoin Cash proponents appreciate the SLP standard because the token system does not interfere with the BCH chains consensus rules. SLP tokens and their transactions have metadata attached to them, which is data that describes and gives information about the tokens properties. The SLP system ties the metadata to OP_Return transactions on issuance, and when tokens are sent and received.Because SLP builds on the transaction chain of the existing Bitcoin framework, users can easily verify transactions with SPV/lite wallets within practical boundaries, the Simple Ledger Protocol whitepaper explains. Full validation of a transaction back to its token genesis is possible by supplementing existing transaction-retrieval infrastructure with integration of SLP consensus rules.Spice, Liberlands Merits, Dublin Ohios City Tokens, Cash Games Dividends, and ACD When the project started, lots of people created tokens for fun and to experiment with the SLP framework. After a few months, token creations became more robust and people have started using them for a variety of reasons. Currently, the most popular tokens by transaction volume include projects like Honk Honk, Spice, Brave Sound token, Official Honk, ACD coin, Amouranth, Honks and Taylor Swift token. Honk Honk tokens capture 26.4% of the SLP transaction volume while Spice tokens hold 9.1%. Spice tokens are used to tip regularly on Telegram channels and even Twitter.In April, the sovereign micronation known as Liberland issued its own SLP tokens to bolster Liberlands goals as an independent and free nation. Liberlands Merits (LLM) tokens are listed and traded on the Altilly exchange. LLM tokens are paired against BCH on Atilly and are swapping for 0.00199900 BCH ($0.61) per LLM. Last year, Vit Jedlicka, Liberlands President, detailed that at some point merits will be used for more of a share in Liberland than a cryptocurrency. Moreover, in the future, as Merits become more mature, they could be used for special voting privileges and paying for state contributions (voluntary taxes).Following the launch of Liberlands merits, in July the CEO of the BCH implementation Bitcoin Verde revealed that the local government from Dublin, Ohio is planning to issue SLP-based tokens. The unnamed SLP token aims to curate three different functions: a token of value, an electronic polling system, and digital identity. The Dublin token is intended to be a reward and barter system for Dublins citizens to incentivize positive behavior, Green told the BCH community on July 2. For instance, citizens may receive Dublin Points for participating in volunteer programs and can use the points in exchange for city-branded swag, for priority parking, or can be redeemed by vendors for goods or rewards.Then theres SLP utility coins and dividend tokens. For instance, on July 23, Bitcoin.coms Roger Ver announced the launch of a Cashgames.Bitcoin.com Dividend Test Token (CGT). Bitcoin Cash has enabled all sorts of amazing things One of them is the ability to pay dividends in BCH directly on the blockchain to the addresses holding a specific token type, Ver explained. This essentially turns SLP tokens into bearer shares that are able to collect dividends. I dont think people appreciate how awesome this is yet, so I wanted to help get things started.At the time, there were 173 BCH in the Cashgames hot wallet and over the next few days holders of the Cashgames.Bitcoin.com Dividend Test Token got sent half of all the BCH earned on the site when dividend payouts were sent. The distribution of Bitcoin.coms dividend token concept will be based on the percentage of tokens you hold. In the near future, Bitcoin.com will be launching Cash tokens for all of the BCH-centric projects within the Bitcoin.com portfolio. Anyone will be able to purchase, sell, and hold Cash tokens in order to get distributed dividend payments.Last May, the Tokyo-based Alliance Cargo Direct, a subsidiary of ANA Holdings (ALNPF), announced the launch of an SLP token called ACD. According to Alliance Cargo Direct, ACD and BCH will be supported by physical and online merchants partnered with the company. Alongside this news, in order to bolster ACDs utility, the business also initiated an ACD coin buyback project. ACD is also listed on Coinsuper exchange and is currently swapping for $0.065 paired against USD and is up 8.33% over the last 24 hours.BTC2 and Honestcoin: SLP Tokens Backed by Assets There are two coins that are backed 1:1 with other assets: Sideshift.ais BTC2 which is backed by BTC and then Honestcoin (USDH) created by the company Honestnode and backed by USD. Both SLP-based tokens were introduced to the BCH community on the same day. The cryptocurrency exchange Coinex revealed the USDH launch and also explained that week that the trading platform will be listing other SLP tokens in the future. Honestnodes CEO Jian Shi told news.Bitcoin.com that USDH is a regulated and secure stablecoin backed 1:1 with USD and partnered with a San Francisco-based compliance provider Koi Compliance. Jian Shi told our newsdesk the startup Honestnode is building a whole ecosystem around the USDH token. Moreover, Jian Shi emphasized that SLP tokens built on top of the BCH chain are more robust than tokens created on Ethereum (ERC20s) or Omni Layer (Tether). At the same time, Bitcoin Cash supports large blocks, with low transfer fees (about 1 satoshi) and 0 confirmation (instant arrival of small amounts), he explained, which allows USDH to move fluidly.BTC2 (Core Cash) is backed 1:1 with BTC and was launched by the cryptocurrency swapping platform Sideshift.ai. The Sideshift project created by Andreas Brekken allows users to trade cryptocurrencies between chains with ease. When Brekken launched BTC2, he told news.Bitcoin.com that all the BTC is collateralized by Sideshift. Sideshift.ai is to BTC2 what the firm Tether is to USDT, Brekken explained. At the time of publication, BTC2 has a market capitalization of around $957,000 with 100 BTC2 tokens in circulation.Third-Party SLP Infrastructure Support and the Continued Growth of BCH Tokenization Since the creation of the SLP system, theres now a couple of ways people can issue tokens. The first is the SLP version of Electron Cash (EC) which is an alternative version of the light wallet that allows for token creation. News.Bitcoin.com has published a step-by-step walkthrough that explains how easy it is to issue SLP tokens using the BCH wallet. Not too long after the launch of the SLP-centric EC wallet, the social media platform Memo.cash created a way for users to produce tokens. Generating tokens on the Memo.cash platform takes less than a minute and our newsdesk published a review of that process as well. Additionally, theres a decent number of light wallets that support SLP tokens so people can store and validate their own SLP token transactions in a noncustodial fashion. Wallets like Ifwallet, Crescent Cash, Badger, Electron Cash, and Memos native wallet all give users the ability to store, send, and receive tokens.The SLP ecosystem is only going to continue to grow more mature over time and theres plenty of token projects in the making. In March, Tribeos founder Matt Gallant and Electron Cash founder Jonald Fyookball explained Tribeos is creating an SLP token for a Security Token Offering. The STO was approved by the Bermuda Minister of Finance under new digital asset laws in the region. On July 26, SLP developers Fyookball and James Cramer published new specifications for a unique type of non-fungible tokens called NFT1. This implementation will allow anyone to create non-fungible tokens that can be grouped together by a single ID.This type of token opens the doors to things like collectibles, digitized assets like virtual land, virtual items for extensible blockchain games, lotteries, raffles and event tickets. Theres been a lot of concepts produced by these SLP tokens and the protocol is really just getting started. Developer Tobias Ruck launched an onchain token auction protocol for SLP tokens and the point-of-sale (PoS) service Bchpls.io now supports SLP. Engineers can also supercharge their BCH application workflow with SLP and Badger Wallet software developer kits (SDKs).Its likely that people with innovative concepts will design a lot more tokens within the SLP ecosystem, which should help push the value and utility of bitcoin cash alongside the people using BCH for traditional double spend-resistant onchain settlement.What do you think about the environment being built around the Simple Ledger Protocol and all the tokens created on top of the BCH chain so far? Let us know what you think about this subject in the comments section below. Did you know that Bitcoin.coms BCH Block Explorer can query SLP token transactions? Check it today to search and find Simple Ledger Protocol tokens within the BCH network. Our Blockchain Explorer tool will allow you to view all previous BCH and BTC transactions as well. The post Exploring the SLP Token Universe Built on the Bitcoin Cash Chain appeared first on Bitcoin News.All Credit Goes To The Author Below And The Source Which Can Be Found By Clicking HEREAuthor: Jamie Redman

Since final August, the Easy Ledger Protocol (SLP) has grow to be a prevalent utility throughout the Bitcoin Money ecosystem. To date theres been hundreds of SLP tokens created, various which have been very fashionable and used often. Tokens have been issued by governments like Liberland, theres a brand new SLP stablecoin backed by USD, a city-token being constructed for Dublin, Ohio and buying and selling platforms like Coinex and Altilly have begun to checklist SLP-based tokens. Additionally Learn: SLP Builders Publish Specs for a Distinctive Kind of Non-Fungible Tokens Bitcoin Money Tokenization Matures With the Easy Ledger Protocol The token universe on the Bitcoin Money blockchain is rising and since final yr theres been near 2,700 tokens created utilizing the Easy Ledger Protocol framework. The entire tokens created utilizing the protocol may be queried utilizing the SLP explorer referred to as Simpleledger.data or a block explorer that helps the SLP kind commonplace.Bitcoin Money proponents respect the SLP commonplace as a result of the token system doesnt intervene with the BCH chains consensus guidelines. SLP tokens and their transactions have metadata connected to them, which is information that describes and offers details about the tokens properties. The SLP system ties the metadata to OP_Return transactions on issuance, and when tokens are despatched and acquired.As a result of SLP builds on the transaction chain of the prevailing Bitcoin framework, customers can simply confirm transactions with SPV/lite wallets inside sensible boundaries, the Easy Ledger Protocol whitepaper explains. Full validation of a transaction again to its token genesis is feasible by supplementing current transaction-retrieval infrastructure with integration of SLP consensus guidelines.Spice, Liberlands Deserves, Dublin Ohios Metropolis Tokens, Money Video games Dividends, and ACD When the venture began, a lot of individuals created tokens for enjoyable and to experiment with the SLP framework. After a couple of months, token creations grew to become extra sturdy and other people have began utilizing them for a wide range of causes. At present, the preferred tokens by transaction quantity embody initiatives like Honk Honk, Spice, Courageous Sound token, Official Honk, ACD coin, Amouranth, Honks and Taylor Swift token. Honk Honk tokens seize 26.four% of the SLP transaction quantity whereas Spice tokens maintain 9.1%. Spice tokens are used to tip often on Telegram channels and even Twitter.In April, the sovereign micronation often called Liberland issued its personal SLP tokens to bolster Liberlands objectives as an unbiased and free nation. Liberlands Deserves (LLM) tokens are listed and traded on the Altilly trade. LLM tokens are paired in opposition to BCH on Atilly and are swapping for zero.00199900 BCH ($zero.61) per LLM. Final yr, Vit Jedlicka, Liberlands President, detailed that in some unspecified time in the future deserves will likely be used for extra of a share in Liberland than a cryptocurrency. Furthermore, sooner or later, as Deserves grow to be extra mature, they might be used for particular voting privileges and paying for state contributions (voluntary taxes).Following the launch of Liberlands deserves, in July the CEO of the BCH implementation Bitcoin Verde revealed that the native authorities from Dublin, Ohio is planning to difficulty SLP-based tokens. The unnamed SLP token goals to curate three totally different features: a token of worth, an digital polling system, and digital id. The Dublin token is meant to be a reward and barter system for Dublins residents to incentivize optimistic habits, Inexperienced advised the BCH group on July 2. As an illustration, residents could obtain Dublin Factors for collaborating in volunteer applications and might use the factors in trade for city-branded swag, for precedence parking, or may be redeemed by distributors for items or rewards.Then theres SLP utility cash and dividend tokens. As an illustration, on July 23, Bitcoin.coms Roger Ver introduced the launch of a Cashgames.Bitcoin.com Dividend Check Token (CGT). Bitcoin Money has enabled all kinds of wonderful issues One among them is the flexibility to pay dividends in BCH immediately on the blockchain to the addresses holding a selected token kind, Ver defined. This primarily turns SLP tokens into bearer shares which are capable of accumulate dividends. I dont assume individuals respect how superior that is but, so I needed to assist get issues began.On the time, there have been 173 BCH within the Cashgames sizzling pockets and over the following few days holders of the Cashgames.Bitcoin.com Dividend Check Token bought despatched half of all of the BCH earned on the location when dividend payouts had been despatched. The distribution of Bitcoin.coms dividend token idea will likely be primarily based on the share of tokens you maintain. Within the close to future, Bitcoin.com will likely be launching Money tokens for all the BCH-centric initiatives throughout the Bitcoin.com portfolio. Anybody will be capable of buy, promote, and maintain Money tokens so as to get distributed dividend funds.Final Might, the Tokyo-based Alliance Cargo Direct, a subsidiary of ANA Holdings (ALNPF), introduced the launch of an SLP token referred to as ACD. In response to Alliance Cargo Direct, ACD and BCH will likely be supported by bodily and on-line retailers partnered with the corporate. Alongside this information, so as to bolster ACDs utility, the enterprise additionally initiated an ACD coin buyback venture. ACD can be listed on Coinsuper trade and is presently swapping for $zero.065 paired in opposition to USD and is up eight.33% during the last 24 hours.BTC2 and Honestcoin: SLP Tokens Backed by Belongings There are two cash which are backed 1:1 with different belongings: Sideshift.ais BTC2 which is backed by BTC after which Honestcoin (USDH) created by the corporate Honestnode and backed by USD. Each SLP-based tokens had been launched to the BCH group on the identical day. The cryptocurrency trade Coinex revealed the USDH launch and in addition defined that week that the buying and selling platform will likely be itemizing different SLP tokens sooner or later. Honestnodes CEO Jian Shi advised information.Bitcoin.com that USDH is a regulated and safe stablecoin backed 1:1 with USD and partnered with a San Francisco-based compliance supplier Koi Compliance. Jian Shi advised our newsdesk the startup Honestnode is constructing an entire ecosystem across the USDH token. Furthermore, Jian Shi emphasised that SLP tokens constructed on high of the BCH chain are extra sturdy than tokens created on Ethereum (ERC20s) or Omni Layer (Tether). On the identical time, Bitcoin Money helps massive blocks, with low switch charges (about 1 satoshi) and zero affirmation (immediate arrival of small quantities), he defined, which permits USDH to maneuver fluidly.BTC2 (Core Money) is backed 1:1 with BTC and was launched by the cryptocurrency swapping platform Sideshift.ai. The Sideshift venture created by Andreas Brekken permits customers to commerce cryptocurrencies between chains with ease. When Brekken launched BTC2, he advised information.Bitcoin.com that each one the BTC is collateralized by Sideshift. Sideshift.ai is to BTC2 what the agency Tether is to USDT, Brekken defined. On the time of publication, BTC2 has a market capitalization of round $957,000 with 100 BTC2 tokens in circulation.Third-Celebration SLP Infrastructure Assist and the Continued Development of BCH Tokenization For the reason that creation of the SLP system, theres now a few methods individuals can difficulty tokens. The primary is the SLP model of Electron Money (EC) which is another model of the sunshine pockets that enables for token creation. Information.Bitcoin.com has printed a step-by-step walkthrough that explains how straightforward its to difficulty SLP tokens utilizing the BCH pockets. Not too lengthy after the launch of the SLP-centric EC pockets, the social media platform Memo.money created a manner for customers to supply tokens. Producing tokens on the Memo.money platform takes lower than a minute and our newsdesk printed a evaluate of that course of as nicely. Moreover, theres a good variety of mild wallets that help SLP tokens so individuals can retailer and validate their very own SLP token transactions in a noncustodial vogue. Wallets like Ifwallet, Crescent Money, Badger, Electron Money, and Memos native pockets all give customers the flexibility to retailer, ship, and obtain tokens.The SLP ecosystem is just going to proceed to develop extra mature over time and theres loads of token initiatives within the making. In March, Tribeos founder Matt Gallant and Electron Money founder Jonald Fyookball defined Tribeos is creating an SLP token for a Safety Token Providing. The STO was accepted by the Bermuda Minister of Finance below new digital asset legal guidelines within the area. On July 26, SLP builders Fyookball and James Cramer printed new specs for a novel kind of non-fungible tokens referred to as NFT1. This implementation will enable anybody to create non-fungible tokens that may be grouped collectively by a single ID.One of these token opens the doorways to issues like collectibles, digitized belongings like digital land, digital objects for extensible blockchain video games, lotteries, raffles and occasion tickets. Theres been a variety of ideas produced by these SLP tokens and the protocol is basically simply getting began. Developer Tobias Ruck launched an onchain token public sale protocol for SLP tokens and the point-of-sale (PoS) service Bchpls.io now helps SLP. Engineers also can supercharge their BCH utility workflow with SLP and Badger Pockets software program developer kits (SDKs).Its doubtless that individuals with progressive ideas will design much more tokens throughout the SLP ecosystem, which ought to assist push the worth and utility of bitcoin money alongside the individuals utilizing BCH for conventional double spend-resistant onchain settlement.What do you consider the surroundings being constructed across the Easy Ledger Protocol and all of the tokens created on high of the BCH chain to date? Tell us what you consider this topic within the feedback part beneath. Picture credit: Shutterstock, Pixabay, Easy Ledger Protocol, Simpleledger.data, Bitcoin.com, Memo, Ifwallet, Badger, Crescent Money, Electron Money, Core Money, and Cashgames.Bitcoin.com. Do you know that Bitcoin.coms BCH Block Explorer can question SLP token transactions? Test it right this moment to look and discover Easy Ledger Protocol tokens throughout the BCH community. Our Blockchain Explorer device will let you view all earlier BCH and BTC transactions as nicely. The put up Exploring the SLP Token Universe Constructed on the Bitcoin Money Chain appeared first on Bitcoin Information.Supply hyperlink