Binance launched a new project called the bitcoin standard hashrate token (BTCST), a coin that represents 0.1 terahash (TH/s). Furthermore, the mining operation Poolin has also revealed a hashrate token called pBTC35A and each token represents 1 TH/s hashrate with pre-determined SHA256 processing power.

With bitcoin mining showing significant upside potential, a couple of crypto industry heavyweights have introduced tokens backed by PoW hashrate. Last week, Binance unveiled a new project called the bitcoin standard hashrate token (BTCST), a coin that’s claimed to be backed by 0.1 terahash (TH/s).

“BTCST sets off to solve the problem of limited exit options by bringing exchange-grade liquidity to Bitcoin mining, and in secondary trading,” Binance announced last Wednesday. “BTCST will perform as a leveraged Bitcoin token free from liquidation risk. BTCST will create an efficient market for Bitcoin’s mining power in ways similar to how Grayscale Bitcoin Trust creates institutional liquidity for Bitcoin.”

The crypto trading exchange added:

BTCST is collateralized by 0.1 TH/s of real-world Bitcoin mining power, which is historically proven to be positively correlated to the performance of the digital gold, and hence the value of BTCST climbs along with the current skyrocketing Bitcoin market.

However, Binance is not the only business looking to offer a PoW mining token as the mining operation Poolin has also introduced the Mars Project. On January 11, 2021, Poolin tweeted “Join the first Ethereum-based standardized hashrate protocol, earn wBTC and LP reward. Infinite possibility when PoW mining steps into [an] Ethereum smart contract,” the mining pool further said. Currently, Poolin is the fifth largest bitcoin pool capturing around 9.4% or 14 exahash per second (EH/s) today.

The Poolin minted ERC-20 token is called pBTC35A and the company says each coin is backed by the firm’s PoW hashrate. “The protocol consists of pBTC35A tokens and [the] MARS token,” Poolin’s announcement explains. “Each pBTC35A token represents 1TH/s hashrate with a pre-determined power ratio, mining rigs would be in Poolin Superhashrate’s custody during life cycle. While net profit on wBTC would be distributed per block.”

Poolin says the first batch will be “50,000 pBTC35A (approximately 50PH/s) tokens for Bitcoin (output with wBTC) mining in this protocol and locks up more than 50PH/s machines physically.” Poolin notes that people can obtain the tokens using the inhouse shop (basic KYC needed) or via the token’s Uniswap contract. The company further detailed that Ethereum and other PoW mineable coins will be also created, but Poolin doesn’t have a confirmed schedule.

According to Binance Launchpool, the PoW token (BTCST), the organization recently launched has also passed an audit from the blockchain security company Certik, and scored a “98 out of 100 in a security audit.” Users will be able to stake BNB, BUSD, and BTC in separate pools in order to farm BTCST tokens, Binance Launchpool also said.

“Compared to conventional cloud mining, BTCST portrays the decentralized spirit of blockchain, with all mining rewards distribution done by smart contracts that are onchain with full transparency,” Alex Zhao, the cofounder, and CTO of BTCST said last week.

What do you think about the new tokens backed by PoW hashrate? Let us know what you think about this subject in the comments section below.

Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here.

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.

second-largest cryptocurrency is still about 50% away from its all-time high.

Ethereum is among the best performers through this challenging year. Whether it was the DeFi craze or the long-anticipated ETH 2.0 launch, the asset has exploded by nearly 500% from $130 at the start of 2020 to the recently charted YTD high of $760.

Despite surging significantly more than BTC percentage-wise, ETH was unable to mimic bitcoin in registering a new all-time high. In fact, Ether is still a long way from its highest level, marked in January 2018 of $1,450 (according to CoinGecko data).

ETH’s price, being roughly 50% away from that level, has caught the attention of the early Facebook investor – Tyler Winklevoss. He classified the option to buy ETH at this level as a “steal” and compared it to purchasing BTC at $14,000 – slightly over 50% of bitcoin’s latest all-time high.

And while Winklevoss might be expecting an additional price surge for ETH, it seems that Ethereum whales have been preparing for such a scenario with massive purchases.

The analytics company Santiment breached data that the number of ETH address holding at least 10,000 tokens has increased by 39 wallets in the past two months alone.

At the same time, Santiment said that retail investors had done the opposite. Addresses containing between 100 and 10,000 ETH tokens have been gradually decreasing since mid-November 2020. Furthermore, the number of relatively small wallets holding between one and 100 Ethers has plummeted before Christmas, as the graph above demonstrates (the purple line).

Google Trends, which is typically a good indicator of retail investors’ behavior, suggests that the term “buy Ethereum” has reached a yearly high this week following ETH’s YTD price record. Nevertheless, the interest from such investors is still far away from the 2017/2018 craze.

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Bitcoin is catching momentum following the retesting of support at $32,000. As reported on Wednesday, it was unlikely the lower support at $30,000 would be rested. Simultaneously, the leg up to $40,000 was only possible if BTC/USD closed the day above $36,000.

The largest cryptocurrency has extended its price action above $38,000. The break past the 50 Simple Moving Average must have increased investors' confidence in the uptrend. A daily close above $38,000 may see BTC explode to $40,000 and perhaps reach new record highs.

BTC/USD 4-hour chart

On the flip side, the Bitcoin bullish narrative will be thrown out the window if a correction occurs under $38,000. The 50 SMA might absorb some of the selling pressure, but some of the most formidable support levels sit at $36,000, $34,000 and $32,000. The level at $30,000 is home to BTC's primary support.

Ethereum has just broken above the x-axis of an ascending triangle. This move is occurring after Ether took back the support at $1,100. The plunge to $900 also allowed more investors to join the bullish market.

A horizontal line can be drawn along with the swing highs, while a rising trendline developed along with the swing lows.

A recent spike in the buying pressure behind the largest altcoin allowed it to break above the overhead resistance. At the moment, ETH could shoot up nearly 17%, revisiting the recent yearly high on the ascending triangle formation.

ETH/USD 4-hour chart

On the downside, if the upswing becomes unsustainable, ETH price may retest the x-axis. Breaking under this crucial level would call for more sell orders as some investors prefer to cash out before the price dips further. Overhead pressure could see Ethereum tumble to the $1,100 and $1,000 support areas.

Ripple's upside is still capped under $0.3 as well as the 50 SMA. The cross-border token seems to be embracing another consolidation, as observed using the Bollinger bands. The middle boundary protects XRP from falling to $0.29, as explained earlier.

As the Bollinger bands constrict, XRP/USD nears its ultimate breakout. To ascertain an uptrend beyond $0.3, support at the Bollinger Bands middle boundary must hold. Buying activity is likely to rise once Ripple spikes past $0.3. The target to the upside is $0.35, but the 200 SMA may limit further price action.

XRP/USD 4-hour chart

It is worth keeping in mind that Ripple selling pressure will intensify if the 50 SMA rejects the price. More losses will come into the picture on XRP breaking under the middle boundary. The support areas likely to be tested include $0.275 and $0.25.

Vision Group CEO Raoul Pal. The industry executive noted that Ethereum is following Bitcoin’s growth trajectory based on Metcalfe’s law.

— Raoul Pal (@RaoulGMI) January 7, 2021

For Ethereum to achieve $10,000, it would have to hit a $1.1 trillion market cap. The current valuation of Bitcoin is hovering at $640 million while ETH’s market cap is at around $120 million.

So, proportionally, it would be possible for Bitcoin to reach a multi-trillion dollar market cap, and for Ethereum to follow suit. Pal said:

“But ETH market cap is growing faster than BTC at the same point ( from first 1m active addresses)… Yeah, ETH might well go to $20,000 this cycle… (exact same as BTC last cycle, by market cap ETH will be bigger). BTC = ETH. Fact. Different assets, different ecosystems, same adoption, same behavioral economics = same same but different…”

Ethereum has the potential to reach such a high valuation mainly due to the significant increase in user activity.

In the past several years, particularly before 2020, there was not a lot of users on Ethereum.

It was the explosive growth of decentralized finance (DeFi) that propelled the upwards trajectory of the Ethereum blockchain network.

In mid-2020, the total value locked in DeFi was hovering at around $1 billion. That figure has increased by 21-fold since, and it is now above $21 billion.

Considering DeFi’s rapid growth and the consistent increase in user activity on Ethereum, analysts are becoming more confident in a more aggressive long-term bull case.

A pseudonymous Ethereum research and developer known as “Antiprosynthesis” said:

“Call me crazy, but I firmly believe that $ETH will hit $10k-$20k within the coming 1-2 years. And this time deservedly so. #Ethereum has firmly established itself to become the universal value settlement layer of the internet, backed by an $ETH with maximum demand/supply ratio.”

On January 13, Brian Brooks, the U.S. acting comptroller of the currency, wrote an oped on the Financial Times about DeFi. He wrote:

“Banking is headed down the same road. And it’s being driven by the technology behind decentralised finance, or DeFi. But just as the original rules of the road protected us from other drivers, so our current bank regulations exist mainly to prevent human failings.”

Brooks also touched on the possibility of granting banking charters to DeFi protocols in the oped, which is a significant recognition from a key official.

If DeFi sees mainstream attraction i the longer term, it would only strengthen the bull case of Ethereum, especially now that layer two solutions are booming.

DeFi protocols are currently running into scaling issues due to the Ethereum network’s limited capacity. But Eth2 and layer two solutions would offset these issues over time.

The decentralized exchange traded over $222 million in the past day alone.

Ethereum has undergone a remarkable rally over the past seven days.

Long-time cryptocurrency investor and crypto Twitter personality “Crypto Cobain”, a.k.a.

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

The price of Bitcoin has recovered strongly overnight, rising from around $34,000 to $38,500.

Bitcoin bounces at $30k support to allay fears of a complete capitulation.

It’s been a bloody past day for the Bitcoin and broader crypto market.

crypto assets including Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

According to the official announcement, Grayscale Digital Large Cap Fund (DLC Fund) decided to remove XRP in its quarterly review and mentioned that no other digital asset qualified for the inclusion. Additionally, the company outlined the current composition of the fund, which includes Bitcoin (81.6%), Ethereum (15.9%), Litecoin (1.4%) and Bitcoin Cash (1.1%).

“Prior to the sale of XRP on January 4, 2021, XRP was approximately 1.46% of the Fund. As of the end of the day on January 4, 2021, the Fund Components were a basket of 81.63% Bitcoin (BTC), 15.86% Ethereum (ETH), 1.08% Bitcoin Cash (BCH), and 1.43% Litecoin (LTC) and each Share represented 0.00047489 Bitcoin (BTC), 0.00287011 Ethereum (ETH), 0.00047537 Bitcoin Cash (BCH), and 0.00167314 Litecoin (LTC). The Fund does not generate any income and regularly distributes Fund Components to pay for its ongoing expenses. Therefore, the amount of Fund Components represented by each Share gradually decreases over time,” Grayscale mentioned in the official announcement.

FMA Vanuatu Eyes Brighter Future for the Nation’s Financial IndustryGo to article >>

The recent announcement came after several cryptocurrency exchanges worldwide announced XRP delisting citing the regulatory uncertainty regarding the status of the world’s fifth-largest cryptocurrency. Moreover, Bitwise, one of the leading crypto asset management firms, announced the liquidation of nearly $9.3 million worth of XRP in December after the SEC’s lawsuit. Furthermore, Genesis Global Trading, one of the authorized partners of the Grayscale fund announced the temporary suspension of XRP from 15 January 2021.

According to the latest data provided by Grayscale, the total value of the company’s crypto assets under management crossed $23 billion on Wednesday. Grayscale now has more than 600,000 Bitcoin with a total value of nearly $20.5 billion. The company’s Ethereum holdings are valued at $3.2 billion. The company’s third most valuable asset is Litecoin with a total value of $180 million.

submit several documents explaining its legality to the New York Prosecutor’s Office tomorrow, Jan. 15, before the deadline expires.

It is believed to contain information about Tether’s business practices, its issuance, its supposed one-to-one peg with the US dollar, and other information regarding Tether Limited. 

Stablecoins are one of the biggest use-cases of cryptocurrencies. They are usually pegged on a 1:1 basis with a fiat currency (or algorithmically controlled) and are said to be backed by a certain amount of reserve at all times.

But stay silent when it comes to Tether doing the exact same thing to Bitcoin.

I love #Bitcoin, but this is not sustainable. Wake up people. pic.twitter.com/k8d0sD7XHm

— CryptoWhale 🐳 (@CryptoWhale) January 8, 2021

USDT is among the first such stablecoins and the most widely used one. It was founded in 2014 as “realcoin”) by Reeve Collins, Brock Pierce, and Craig Sellers, before rebranding to its current form and stating that “every Tether+ token is backed 100% by its original currency, and can be redeemed at any time with no exposure to exchange risk.”

However, for a few years, several critics have questioned the reserve of Tether, given the company has not yet provided a verifiable audit of its dollar reserves or allowed a third-party auditor to reveal their findings to the public. This has resulted in people questioning the very existence of Tether.

But how does it matter? It’s because USDT’s issuance has reached over $23 billion in recent times, and with daily volumes exceeding even Bitcoin’s, some crypto users are ringing the alarm bells.

That said, however, the January 15 deadline is only the delivery of the required documentation to New York courts. No judgment or judicial charges are expected or levied tomorrow, meaning any fear in the market is likely a result of overreaction.

Tether’s problems started after the Panama Leaks papers linked the executives of Bitfinex, Philip Potter and Giancarlo Devasini, to Tether Limited in 2015. This caused controversy at the time.

The second controversy came after USDT supply grew from $10 million to over $2.8 billion from January 2017 to September 2018. The rise was questioned by many, and by mid-2018, Tether accounted for over 80% of the overall Bitcoin volume.

Research suggested that an alleged price manipulation scheme involving tether accounted for about half of the price increase in Bitcoin in late 2017. However, that has not unfazed its backers yet. 

— Samson Mow (@Excellion) January 14, 2021

What 2021 holds for USDT is a guess at best. But crypto fanatics are likely praying the critics don’t turn out right.

USDC, a stablecoin developed by the Circle, is the second-largest USD-backed stablecoin on the market according to data from Skew.

Tether (USDT) has seen extreme growth since the start of the year.

Decentralized finance (DeFi) has seen a massive explosion over recent weeks and months, reaching a total value locked of $7.13 billion according to DeFi Pulse.

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

The price of Bitcoin has recovered strongly overnight, rising from around $34,000 to $38,500.

Bitcoin bounces at $30k support to allay fears of a complete capitulation.

It’s been a bloody past day for the Bitcoin and broader crypto market.

some have made millions, the currency carries significant risks and may not be a good investment for more conservative investors.

Those considering this decentralized version of digital cash have a few different ways to buy bitcoins. You can buy them directly or indirectly from a few traditional brokers, as well as some newer upstarts. In fact, it’s easier than ever to buy bitcoins, and you can likely do it at a lower commission than before too.

Here are five ways to buy bitcoins and some key factors that you need to watch.

Bitcoin is one kind of digital currency or cryptocurrency, a way to pay for things that exists only virtually. The currency debuted in 2009 and really broke into mainstream consciousness in 2017 with its rapid rise that year. Coins are created, or “mined,” when computers that organize the currency process and legitimize transactions in the currency.

Bitcoin uses a decentralized network of computers to manage everything — a distributed ledger called a blockchain that tracks transactions in the currency. It’s like a huge public record of every transaction that has taken place in the currency. And the network monitors everything, ensuring the currency’s integrity and the ownership of bitcoins.

If you’re looking to trade bitcoins, the good news is that you now have many options. You may not even need to open a separate and specialized account to do so, since many major brokers offer a way to buy them. (Here are some of the top brokers for trading cryptocurrency.) Plus, some unexpected players – PayPal, for example – now allow U.S. residents to buy, sell and hold Bitcoin too.

As you’re considering how to buy Bitcoin, you’ll want to evaluate the following factors, since they should influence your choice of where to buy it or whether to ultimately avoid it altogether.

You may also receive bitcoins as part of commercial transactions. Regardless of how you came by your coins, any transaction in the cryptocurrency is reportable to the IRS at tax time.

Each method below offers a different combination of cost, security and potential upside/downside.

PayPal makes it tremendously easy to buy or sell bitcoins directly using the same app that you’ve come to trust with your online payments. You’ll pay $0.50 for trades involving less than $25, and from there PayPal uses a sliding commission scale that starts at 2.30 percent for trades over $25 and declines to 1.50 percent for trades of more than $1,000. Though there’s a spread markup, you won’t pay a fee for holding cryptocurrency in your account, and you can trade as little as $1 at a time. Ethereum, Litecoin and Bitcoin Cash are also tradable here.

Coinbase is a specialized exchange for cryptocurrencies that allows you to own the currencies directly. You’ll be able to trade dozens of the most popular cryptos, including Bitcoin, Bitcoin Cash, Litecoin and Ethereum. For extra security, Coinbase also allows you to store your coins in a vault with time-delayed withdrawals. It charges a spread fee of 0.50 percent and then adds on a transaction fee that varies with the funding source and the size of the transaction. This fee could typically add another 1.49 percent on to your costs but even more with a debit card.

The fee structure is confusing, to say the least, although Coinbase promises to show you what you’re paying before you actually have to make the payment.

Robinhood takes its best trick – no commissions – and applies it to cryptocurrency. You’ll be able to buy bitcoins directly, and will have access to more than a dozen other digital currencies, too, a feature that other brokers listed here don’t offer. Of course, you’ll be able to buy stocks, ETFs and options while you’re on the easy-to-use platform. Read more on Robinhood.

At Interactive Brokers you’ll be able to buy futures contracts on Bitcoin, but won’t be able to own the currency directly. The broker charges $15.01 per contract, which gives you exposure to five bitcoins. Interactive Brokers also provides a whole range of other tradable securities, giving you access to securities across the world. Read more on Interactive Brokers.

Another option is to buy bitcoins directly through a Bitcoin ATM, though you’re likely to pay much more in commissions than you would elsewhere. You’ll be able to buy bitcoins and some ATMs will allow you to sell them, too, using cash or a debit card. But you may need a Bitcoin wallet to make the transaction. Commissions can be pricey, with some ATMs charging around 7 percent per transaction, while the fees at others may stretch into the teens.

If you’re looking to purchase Bitcoin or other digital currencies as an investment, it’s important to keep costs to a minimum. Given the novelty of the crypto market, many brokers would love to maximize their commissions (in contrast to the stock market where trading fees have gone to zero). That cost eats into your profits, so look for a way to minimize those frictional costs.

While the price of Bitcoin has run high quickly, it still carries serious risks that make it not suitable for everyone. Those looking for conservative investments or who cannot afford to lose money should consider avoiding Bitcoin or trading only with an amount they are willing to lose.

11,000! All in all, NordFX allows you to make transactions with 11 top cryptocurrencies, and all under the same super profitable conditions. So, for a trade with ethereum only $15 is enough, EOS – $0.3, and an investment in 1 ripple will cost only 2 American cents! What does the NordFX brokerage company offer and how does it differ from conventional crypto exchanges? ■ You can invest in bitcoin and other cryptocurrencies for any period – week, month, year, 10 or 100 years, and you can actively trade them, making transactions every minute if you wish. ■ You can profit both on buying and selling cryptocurrencies, depending on the current situation. So even if their price drops to zero can make you a huge profit. At the same time, selling cryptocurrency (opening a short position), you do not need to have coins themselves at all. This is possible thanks to the use of CFD (Contracts for Difference) trading, which has long been used in trading in the stock market, Forex and the commodity market. ■ Thanks to margin trading (a loan that NordFX provides you instantly automatically and without any collateral), you can open trades or invest in cryptocurrencies at a price 50-70 times lower than the market price. Thus, to open a trade of 1 bitcoin, you need only $150, for a trade of 1 ethereum – only $15, and in 1 ripple – $0.02 (see table below): ■ The minimum deposit at NordFX is only $10. Deposits in USD, bitcoins and ethereums, at your choice. ■ The company has extensive experience in preventing hacker attacks. In 12 years of operation, unlike crypto exchanges, there has not been a single hacking and not a single penny of customer funds has been lost either. ■ Cryptocurrencies are traded at NordFX 24 hours a day, seven days a week, 365 days a year. Becoming a NordFX client: who are you dealing with? NordFX is an international brokerage company with more than 10 years of successful work in financial markets. The number of accounts opened with the company by clients from almost 190 countries exceeds 1,500,000 as of today. Since 2008, NordFX has been awarded more than 50 prestigious professional awards, including 5 awards for outstanding achievements in crypto trading. How to make transactions with cryptocurrency at NordFX Registration and opening of an account To register on the company’s website, you need to go to the main page of the website using the link https://nordfx.com/ In the top right corner, you will be asked to open an account. Press the “Open an Account” button You can register in two ways: through social media, or by filling out the whole form. You can trade cryptocurrency on three types of accounts: Pro, Fix, Zero. You can find out the detailed account specification at https://nordfx.com/accounts.html. Next, you need to specify the type of currency in which your deposit will be: US dollars (USD), bitcoins (BTC) or ethereums (ETH). And also, the leverage size from 1: 100 to 1: 1000 (although this is important for trading fiat, not cryptocurrencies): Once you sign up, you will be shown a page with your details to log into the site’s personal area, as well as to access trading in the MT4 terminal. This information will also be sent to your email address. Click on the Log-in page and enter your personal area on the site. Adding funds for trading The first thing we need to do on the personal page is to top up the account. To do this, press the “Deposit” button. In the first step we specify: In the second step, we need to specify the amount we want to deposit and click on the Add Funds button. You will be redirected to the payment page, depending on the deposit method you choose. You can find out all the details about the ways to deposit, fees and more on this page https://nordfx.com/Deposit_Withdrawal.html Downloading, installing, and launching the MT4 terminal To trade, you need to download MT4 trading terminal (Windows version or mobile trading terminal (iPhone/iPad or Android). You can download it on the personal cabinet page or on the NordFX website in the “Platforms” section. When you first start, you need to log in to the trading terminal. Terminal МТ4 (MetaTrader-4) is the most popular terminal in the world for trading in financial markets. You can get more complete information on how to work with the terminal in the NordFX Learning Center https://nordfx.com/edu.html , or by clicking on the Help button on the top control panel of the terminal itself. Withdrawal of profits To withdraw funds you need to go to this page https://account.nordfx.com/account/dw/?action=witdrawal Detailed information on withdrawing funds is available on this page https://nordfx.com/Deposit_Withdrawal.html  And we remind you that if you have any difficulties or questions, our Support Service 24/5 is always at your service.

consider that the Canadian dollar (i.e. fiat currency) we use to conduct everyday buy and sell transactions has no intrinsic value other than that bestowed upon it by government, the concept of electronic money begins to take shape.

Bitcoin and altcoins such as Ether, Litecoin and XRP are somewhat similar to fiat currencies. Simply put, their intrinsic value is tied to the value placed on them by users.

Other factors that determine cryptocurrency values include their supply, demand, acceptability, cost of mining them, and government regulation or lack thereof.

Read on to learn about Bitcoin, how to trade it in Canada, and whether it is safe.

Bitcoin is what comes to mind when you think about digital currencies. It is a cryptocurrency that was invented in 2008 by a person or group of persons known as Satoshi Nakamoto.

The ‘crypto’ in cryptocurrency refers to the use of cryptography to create new units of cryptocurrency as well as verify and secure transactions on the peer-to-peer network.

Since Bitcoin is decentralized, no Central Bank or intermediary is involved and the system relies on technology and code. This decentralization has also made it a target of hackers and it has been used to fund various illegal activities including terrorism and money laundering.

New Bitcoin is created by Bitcoin miners who use high-speed computers to solve complex mathematical problems.

In exchange for adding new records to the public ledger (also called Blockchain) and verifying transactions in the network, a miner is rewarded with Bitcoin tokens.

The maximum amount of Bitcoin that can ever be mined is 21 million. You can purchase very small units of Bitcoin, with the smallest amount equal to 0.00000001 BTC (also referred to as 1 Satoshi).

Bitcoin is traded under the symbol BTC or XBT and its value changes all through the day similar to stock prices on an exchange.

The highest value of 1 Bitcoin was reached on December 17, 2017, when it sold for an all-time high of $19,783.06 USD.

The top-10 cryptocurrencies by market capitalization as of September 24, 2020, are:

There are several ways to get your hands on Bitcoin in Canada.

Your options include buying it from an online cryptocurrency broker or trading platform (e.g. Wealthsimple Crypto and MogoCrypto), a cryptocurrency exchange (e.g. Coinsquare and Bitbuy), or at a Bitcoin ATM.

There are also ways to purchase Bitcoin through peer-to-peer (P2P) networks or Over-the-Counter (OTC).

Wealthsimple Crypto is the first regulated cryptocurrency platform in Canada, having received authorization to operate by the Canadian Securities Administrators (CSA).

If you are not familiar with Wealthsimple, it is the most popular online wealth management platform in Canada.

Wealthsimple Crypto is a simple and secure way to buy and sell Bitcoin and Ethereum right from your phone. Its UX is particularly optimized for beginners who are new to digital currency trading.

After signing up for a Wealthsimple Crypto account and funding your account, you are able to trade cryptocurrency via the app in just a few clicks.

Wealthsimple Crypto works like a broker. When you put in an order to purchase or sell crypto, they connect you to a market maker(s) who finds the best price available on the largest exchanges.

Your crypto holdings are then held with a regulated custodian (Gemini) which keeps your cryptocurrency secure in cold storage.

The cryptocurrency market does not sleep, so you can make Bitcoin and Ethereum trades 24/7 using the Wealthsimple Crypto app.

Cryptocurrency trading is very risky, so there is that.

With regards to the security afforded your account, Wealthsimple Digital Assets (the company offering Wealthsimple Crypto) is registered as a restricted dealer in all jurisdictions of Canada except Quebec. In Quebec, the company is registered as a derivatives dealer.

Your Crypto assets (i.e. Bitcoin and Ethereum) are held in cold storage by Gemini Trust Company LLC. Gemini uses FIPS 140-2 Level 3-rated or higher hardware security modules (HSMs) and is subject to regulation by the New York Department of Financial Services.

Gemini has $200 million in cold storage insurance. Its CEO and President are the Winklevoss twins (co-founders of Facebook).

This account offers several benefits including:

Downsides of Wealthsimple Crypto include:

To open an account, you must be at least 18 years of age, have a social insurance number, and be a resident of Canada.

If you are not already a Wealthsimple client, you will also need to verify your identity in line with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) requirements.

MogoCrypto is a cryptocurrency trading platform in Canada. In addition to cryptotrading, Mogo also offers other products including:

Mogo is a Canadian financial technology company with offices in Vancouver, Surrey and Winnipeg. The parent company, Mogo Inc., is publicly traded on the Toronto Stock Exchange and NASDAQ.

Similar to Wealthsimple Crypto, MogoCrypto functions as a broker that makes it easy to purchase cryptocurrency in just a few clicks.

MogoCrypto only offers trading in Bitcoin and Mogo members can place trades using the Mogo app or portal.

To gain access to the platform, sign up for a Mogo Account (takes about 3 minutes). After, you can fund your account using Interac e-Transfer.

MogoCrypto uses Coinsquare (goNumerical Ltd.) to facilitate purchases and sales of Bitcoin and to hold it.

The benefits and downsides of trading Bitcoin with MogoCrypto are as follows:

It bears repeating that trading cryptocurrency is a high-risk gamble. You may win big, or lose a lot of money.

Mogo Inc. is a legitimate company in Canada with an A+ rating on the Bettter Business Bureau. Your MogoCrypto assets are held with Coinsquare, an exchange that has been around since 2015.

Coinsquare uses SSL and 2FA plus 95% cold storage to protect your account.

The company recently ran afoul of the Ontario Securities Commission and both the founder and CEO had to step down.

Binance is one of the largest cryptocurrency exchanges in the world with an average volume of $2 billion in trades per day.

The company was founded by Changpeng Zhao and is based in Malta.

Binance also offers an OTC platfform for large trades.

Bitbuy is a Canadian cryptocurrency trading platform founded in 2013 and based in Toronto. It offers trading in Bitcoin, Litecoin, XRP, Stellar, EOS, and Bitcoin Cash.

Bitbuy is a registered Money Services Business (MSB) by FINTRAC.

Coinmama is a popular cryptocurrency vendor platform founded in 2013. It has millions of users and is available in 188 countries.

Users of the platform can buy 8 different currencies including Bitcoin, Ethereum, Litecoin, XRP (Ripple), Bitcoin Cash, Cardano and Quantum.

You can buy various cryptocurrencies on Coinmama, but can only sell Bitcoin. Since it’s not a trading platform, you can only purchase crypto with fiat currency.

Coinbase is a cryptocurrency brokerage platform based in the United States and open to members from 102 countries.

It has over 1,000 emplyees, 35 million users, and has traded more than $200 billion worth of cryptocurrency.

Coinbase has a crypto exchange, Coinbase Pro, with lower trading fees, charting tools, and advanced options.

You can purchase Bitcoin at a vending machine specifically designed for buying and selling cryptocurrency. Generally, you should already have a Bitcoin address where your Bitcoin will be deposited and you pay using cash.

Some Bitcoin ATMs also allow you to exchange Bitcoin for cash.

The commissions charged by Bitcoin ATMs are typically higher than what you’d pay on an exchange.

As of this writing (September 2020), there are 891 Bitcoin ATMs in Canada. You can locate the ones in your area here.

Bitcoin is stored on a wallet which can be installed on your computer or phone. You can also use a hardware wallet or even a paper wallet.

A wallet works like a traditional wallet or bank account and contains your private and public keys.

Your public key is the string of alphanumeric symbols you provide to someone who is sending you Bitcoin. Your private key is what gives you access to your coins and you should guard it carefully.

If your private key is compromised, you can lose all your funds.

The four main types of Bitcoin wallet are:

Hardware wallets are offline (aka cold storage) and are the most secure types of wallets available. They can be a bit expensive compared to software wallets.

You can also simply print off your private and public keys and corresponding QR codes on paper and store it in a safe place.

It is legal to buy, sell, and spend Bitcoin in Canada. However, the Financial Consumer Agency of Canada wants you to know that Bitcoin and other cryptocurrencies are not legal tender in Canada.

Only bank notes issued by the Bank of Canada under the Bank of Canada Act and coins issued under the Royal Canadian Mint Act are considered to be legal tender.

This does not stop you from using Bitcoin to pay for goods and services wherever it is accepted as a means of payment.

Also, it is perfectly legal to buy and sell Bitcoin and make a profit or capital gain when you sell your coin for more than you paid for it.

If you are tech savvy enough to indulge in Bitcoin mining, this activity is also legal in Canada. I should note that as the competition as increased over time, Bitcoin mining has become a lot more expensive.

Bitcoin is a speculative investment and you should not trade it using funds you cannot afford to lose.

Having lost thousands of dollars day-trading S&P 500, NASDAQ, and Dow Jones Industrial Average (DJIA) e-mini futures in the early 2000’s, I’m no stranger to speculative investments and high-risk trading.

These days, only a negligible portion of my net worth goes towards non-traditional assets (e.g. Bitcoin and P2P lending). My portfolio is largely composed of hassle-free one-ticket ETFs.

Bitcoin and other cryptocurrencies can make you a lot of money, but you can also lose 100% of your investments.

A good example of how this can happen is Quadriga. When this crytocurrency exchange went belly-up in 2019 following the alleged death of its founder, Gerald Cotten, customers lost $215 million.

I lost approximately $600 or so in Ether when this happened.

In addition to unscrupulous exchanges, there is also a challenge with hackers who steal Bitcoin from exchanges through ransomware and other fraudulent means.

In order to decrease the chances that you could lose your funds, use a regulated cryptocurrency trading platform and avoid leaving your Bitcoin in a hot wallet.

There are many advantages and disadvantages of trading Bitcoin in Canada.

Gains from cryptocurrency trading are taxable in Canada. As per the Canada Revenue Agency (CRA), cryptocurrency is treated like a commodity under the Income Tax Act.

How you report the gains or income from digital currencies depends on whether you are:

Let us start with the business owner who accepts Bitcoin as a means of payment. In this case, tha value of Bitcoin received is reported as business income for tax purposes.

In order to figure out the value of the transaction, you can use the exchange rate available at the time of the transaction in Canadian dollars.

If your business is registered to collect GST/HST, you must also collect and remit this tax amount.

Infrequent Bitcoin users may also have to pay taxes on Bitcoin usage.

For example, if you bought Bitcoin in order to pay for goods and services and it increases in value, you are required to declare a capital gain when you dispose of it. The same applies to buy and hold investors.

Capital gains are taxed differently from income. Only 50% of your gains is added to your taxable income for the year.

If you incur a loss, it is treated as a capital loss and can be offset against capital gains for the year or any of the preceeding three years.

If CRA classifies you as a day trader based on the nature of and frequency of your transactions, your profits may be taxable as business income.

Cryptocurrency miners who are deemed to be conducting a business will have to report profits as taxable income.

There are many angles to how the CRA considers cryptocurrency profits. For instance, taxable income or capital gains may also be generated when you exchange one cryptocurrency for another e.g. Bitcoin for Ethereum.

You can check this CRA guide for more information.

Have you traded any crytocurrencies since they took to the airwaves? Let us know about your experiences in the comments.

(ETH) in the UK, this helpful guide will provide you with all the information you need to know.As people have started to embrace cryptocurrencies, popular coins such as Ethereum and Bitcoin have risen in price. Because of this, global exchanges and wallets have ensured that they support Ethereum and all other ERC-20 tokens. ETH has been publicly traded since 2016 and has grown to be one of the largest cryptocurrencies in the world. With this, many crypto users want to get their hands on this popular altcoin.If you live in the UK and want to purchase some Ethereum, you will need to buy it through either a cryptocurrency exchange or a peer-to-peer platform that offers Ether. First, you will need to set up an account on an exchange.In order to purchase Ethereum, you will need to:Choose an exchangeSet up an account on your chosen exchangeDeposit funds through a bank transfer, credit/debit card, or using a different type of cryptocurrency such as BitcoinExchange your funds for the chosen amount of EthereumWithdraw your funds into your own hardware wallet this is an optional step, but is highly recommendedHow to choose an exchangeWhen choosing an Ethereum exchange, you will have to analyse all the different features and choose one that is best suited to your needs.Some important factors to remember are as follows:Fees Fees on all exchanges will vary. You will ideally need to examine the deposit, withdrawal, and transaction fees. But remember, exchanges with the cheapest fees are not always the best.Payment methods You will need to find out what payment options the exchange will accept. This can vary from credit/debit cards to wire transfers and even PayPal.Supported countries This may be the largest factor when choosing the exchange you wish to use. If the exchange does not support the country you live in, there will be no point setting up an account.Customer support If you are a beginner, you may be in need of customer support at various stages of your purchasing process. If an exchange is not beginner friendly and does not provide reliable support, you might struggle when making your purchases.Best UK Ethereum exchangesHere are some of the top exchanges that sell Ethereum in the UK.BitpandaBitpanda is one of Europes most used platforms for buying and selling Ethereum and other digital assets. It is based in Austria and was founded in 2014. Over the years, Bitpanda has become extremely popular for those in Europe. Users are able to buy Ethereum in the UK with a wide range of payment options including NETELLER, Skrill, online bank transfers, and credit and debit cards. The exchange is great for beginners due to its intuitive interface and low fees.ChangellyEstablished in 2016, Changelly allows users to trade one cryptocurrency for another. It aims to provide the best rates on the market with transparent fees. If you own Bitcoin or a similar cryptocurrency, you can automatically trade it for Ethereum. This exchange is great if you already own a coin as the interface is simple and transfers do not take a long time to complete. However, if you wish to buy Ethereum with fiat currencies on Changelly, be prepared for extremely high fees.CoinmamaFinally, Coinmama is another great exchange for beginners. It has been in the space since 2013 and supplies a broker service for many cryptocurrencies including Ethereum. Coinmama prides itself on quality customer support, making it a suitable option for beginners who may need assistance. It accepts credit and debit card payments with a fee and has top security features. Coinmama also does not store any personal information about the user, which makes it less likely for a hacker to get hold of your funds or payment details.ConclusionAs Ethereum becomes more popular, the number of exchanges offering ETH and options for purchasing the asset will increase dramatically. If you are a beginner, you will need to remember to choose an exchange with an easy interface and helpful customer support.Source: Yahoo! Finance Tags :ethereumPrevious Article TP ICAP Enters the Crypto Business to Trade Bitcoin Derivatives Next Article Why The Blockchain Space Is Maturing

gift card to buy Bitcoin using a fiat-to-crypto exchange.

The process is quite straight-forward as exchanging your Bitcoin gift card money in return for Bitcoin using a cryptocurrency exchange.

If you have some Amazon gift card lying around in your closet, this will also be one of the smartest investment strategy to sell Amazon gift card for Bitcoin cryptocurrency.

Before you start trying to buy BTC with Amazon gift card, if you don’t have a wallet to store your new Bitcoin, we recommend that you read my article on the best crypto hardware wallets.

Without much ado, let me take you through how to convert your Amazon gift card to Bitcoin by purchasing an equivalent amount of BTC crypto-coins.

Let’s get started!

Shall we…?

For the sake of simplicity and clarity, am going to showing you how to buy Bitcoin with amazon gift card on LocalBitcoins.

To help you learn and understand how this marketplace platform works, I have written a review on LocalBitcoins exchange.

Follow these simple steps below:

That’s how simple it is!

You have successfully purchased Bitcoin with Amazon e-gift card as the payment method using LocalBitcoins.

There are only few reliable platforms that you can actually trust enough to buy Bitcoins with Amazon gift card code online without loss of money due to investment scams and theft.

LocalBitcoins is a P2P (Person-to-Person) Bitcoin exchange platform that specializes in connecting buyers and sellers. It gives vendors an ability to create offers in all currencies, while serving as escrow.

Buy Bitcoin from LocalBitcoins

Paxful is a person-to-person marketplace that supports over 300 payment methods. It gives vendors the ability to create offers in all currencies – just like LocalBitcoins.

Below are my answers to some of the frequently asked questions online, while researching on how to buy Bitcoins with Amazon gift card balance.

Founded in 1994, Amazon is the inventor of the original affiliate program and is now the richest company in the world.

Besides being heavily invested in data & analytics (Alexa), Amazon prides itself on providing excellent customer service and its ability to deliver everything from A to Z for its customers.

Amazon’s core business model today includes Amazon Web Services, Kindle, Audible, Twitch, and Amazon Prime (Movies, Music, IMDB).

It offers Fulfilment By Amazon (FBA), Kindle Direct Publishing, Amazon Associates, and Merch for small businesses and entrepreneurs who want to partner with the company and its platform on autopilot.

Amazon gift cards can be found at most major retailers. You can also use the Amazon Bitcoin payment store known as Purse.io to get the gift cards.

Cryptocurrency exchanges and services like, Local Bitcoins and Paxful allow Bitcoin purchases using prepaid cards. These marketplaces are available worldwide and support multiple payment methods (including local currencies).

Amazon gift cards are instant payment method with a unique electronic code that helps reduce fraudulent activity and theft. It is a safe method to buy Bitcoin as long as this code is not publicly disclosed or compromised.

Users can conduct their own due diligence when using P2P exchanges in particular, as the transaction parameters are agreed between the buyer and seller.

So now that you know how to sell Amazon gift card in exchange for Bitcoin, the next step is for you to sign up with the services listed above and try it out for yourself.

There’s no excuse to have unused Amazon gift cards laying around. These providers also allow you to buy Amazon Gift Cards with BTC.

Try not to leave your Bitcoin investments on an exchange where you bought it, because it’s not a safe method of storing crypto-coins.

You can use Ledger Nano X wallet as it’s one of the best wallets in the market, or simply download Trust mobile app wallet to avoid theft and hacks.

everyone in the ecosystem, we don’t realize what this implies, so, let’s take a look at what this means.

Grayscale Investments has been at the forefront of bringing bitcoin to institutions and retail alike. However, what goes unnoticed by most is the rate at which they are buying BTC.

Jan 2017 – Jan 2018, their BTC holdings increased by 9.87%. The same trend was observed from Jan 2018 to Jan 2019 with a 15.73% growth in holdings. From Jan 2020 to June 2020, the holdings increased by a whopping 89.39% to 536.86K BTC that they hold [not accounting for the first week of December].

Grayscale is gobbling up bitcoin at an unprecedented rate as more institutions realize what the future for the dollar holds.

In an interview with CNBC Michael Saylor casually mentioned that it would produce profits in excess of $500 million next year and it would debase by 15-20% if held as cash, which is why he invests it in bitcoin, which provides 100% yearly return. Just from August 2020 to December 2020, Michale Saylor has scooped up a whopping 40,824 BTC, which is approximately 7% of what Grayscale holds.

These two companies are just the ones that are in the news or being talked about widely in the crypto space.

Let’s take a look at the ones that aren’t.

As one can see, these companies together hold about 0.888 million BTC or 888K BTC. This number is only going to go up.

The question that should, at this point, come up in is – “Will there be any BTC left for people like you and me, the retail side of the market?”

Let’s take a look at that.

Total BTC supply – 21M To be mined – 2.434M Circ. supply – 18.565M Lost BTC – ~4M Free float – 14.565M

So, we have approximately 14.565 million BTC circulating in the free market. 6.09% of this is already owned by these institutions, which leaves a total of 13.667M BTC to us retail folk, right?

Let’s try to approximate the bitcoins being held by whales or owned/held solely by exchanges.

There are a total of 15.866M BTC held in wallets containing more than 10 BTC, which are whales [very losely]. However, this includes the lost bitcoins [of 4M]. deducting that, we have 11.866M BTC held by whales/exchanges.

So, 11.866M BTC out of 13.667M BTC is held by either whales or exchanges or both, which leaves about 1.801M BTC readily available and for the taking of retail, institutions, and whales alike.

Although the above is a very vague approximation of numbers by loosely defining whales, exchange supply, etc., this does bring out a portion of the truth if not the whole truth itself, which is bitcoin is scarce.

Why Ethereum is the most dominant cryptocurrency?

SBI Digital Asset Holdings to partner with SIX Exchange

Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.

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