The Internet Computer, which the Dfinity Foundation plans to launch Friday, has the potential to make every facet of decentralized finance (DeFi) applications uncensorable – that is, if the project’s unusually bold claims hold up.

That could be extremely powerful for the most successful applications on Ethereum, but it could also mean that many of those apps ultimately migrate for good to The Internet Computer.

It also might turn out that none of that happens. Or that The Internet Computer turns out to be great but for something no one anticipates now – such is the course of big, strange new technology.

“We want people to abandon traditional IT and move all systems and services to smart contracts,” said Dominic Williams, the chief scientist at Dfinity.

The Internet Computer (TIC) is what Dfinity calls its new decentralized system for running all the applications we are familiar with from the open web as well as on blockchains like Ethereum and Binance Smart Chain.

The claims for The Internet Computer could not be larger. In a September blog post, the company described it as “a new type of blockchain computer with infinite capacity and performance that rivals the traditional cloud.”

When we spoke, Williams said that Bitcoin created digital gold, inventing this whole market. The second big contribution was smart contracts, which Ethereum proved work. The Internet Computer offers the third step, which he called “infinite blockchain.”

Any claims about infinite anything in computing are worth scrutiny. Regardless, it seems evident that there’s a set of crypto enthusiasts who are eager to try their hand with this new system.

According to Seamus Conwell, a spokesperson for the foundation, it has raised $121 million, with investors including Andreessen Horowitz, Polychain Capital, Scalar Capital, CoinFund, Multicoin Capital and Greycfroft Partners. There was also a $61 million round in February 2018 that it considers ecosystem funding, rather than direct backing.

Dfinity also received a relatively strong vote of confidence from the most well-known crypto exchange in the U.S., Coinbase, which announced that Dfinity’s governance and utility token, ICP, would be immediately open to deposit on Coinbase Pro, with trading to follow once liquidity conditions have been met.

No one will be able to use their ICP tokens until the network goes live, but when it does, more than 50,000 people will hold ICP, according to estimates. The tokens allow users to buy computing power on the network and to participate in governance.

Ethereum apps would be able to build their front-end websites on TIC. That could be a key step to make their applications more resistant to regulation and censorship.

“From a practicality standpoint, given kind of the unstoppable nature of Ethereum and the smart contracts, the only place they can try to censor this stuff is at the interface level,” said Harrison Hines, the founder of Fleek, a company that helps users publish on the decentralized web. 

TIC, he continued, “can host the front end and essentially the applications that are built on top of these smart contracts that are run on Ethereum.”

As long as the interfaces that 99% of all participants use are hosted by cloud providers like Amazon and Microsoft, DeFi applications are vulnerable. 

“You’re not really interacting with a blockchain. You’re interacting with a website that’s interacting with a blockchain. You’re interacting with Amazon Web Services,” Williams said.

So TIC runs across a network of database centers, which are deployed around the world so that a website isn’t actually hosted on one specific database center so much as it is hosted on several, perhaps dozens, of them.

Fleek started off by helping users get onto Filecoin, and now it’s planning to help users run projects off TIC as well. 

“Any static site can now pretty much out of the box just switch. Instead of hosting that on AWS or IPFS, they can now be hosted on a canister on The Internet Computer,” Hines explained, and that won’t require browsers to do anything different. In TIC parlance, a “canister” is basically a smart contract or an application.

By running on this decentralized framework, the front ends for a lot of Ethereum projects could potentially be much more difficult for governments or even the tech industry to regulate.

“The way things are right now you could say that Ethereum execution environments are subject to big tech governments,” John Lilic, a ConsenSys alum and crypto investor, told CoinDesk. He pointed, in particular, to the de-platforming of the Twitter alternative Parler from Amazon Web Services as an example.

Most Ethereum apps run on similar infrastructure, Lilic said. And then there is staking. Many newer blockchains run a consensus system that’s less computationally intense than Bitcoin’s because they require validators to put assets at risk. Cosmos, Tezos and EOS all take this approach, and their nodes can all be easily run on cloud infrastructure.

“A lot of the proof-of-stake networks you see out there at the moment, they are really layer-2 applications on big tech clouds,” Williams said.

And that’s the direction Ethereum is heading.

Still, Williams made sure to say that Ethereum and TIC serve two different sets of demands.

“I think the Ethereum and the Internet Computer are different beasts. We should not be called an Ethereum killer. Without Ethereum, there would be no Internet Computer,” Williams said.

TIC may be decentralized, but it’s not exactly permissionless.

Unlike other cryptocurrencies that have tried to start on consumer hardware, Dfinity went straight to data centers for this project, and those data centers can participate only if they have been voted in by network governance (holders who have staked the ICP token) and attained an identity on the network.

Further, TIC nodes can be run only on machines designed specifically for it. Bitcoin took a while to get to the ASIC (application-specific integrated circuit) machines that dominate it now, but TIC is going straight to custom hardware.

As the TIC’s documentation explains:

“The computers that make up the virtual machine are organized into sub-networks of data centers around the globe. The distributed architecture enables secure communication without firewalls or technologies that are vulnerable to attack. Independent data centers receive remuneration for contributing computing capacity and hosting services to support applications running on the Internet Computer platform.”

The upshot of that is that it won’t be possible for any one data center, or even a group, to kick a particular website or application off its network. Even if a government shut down all the data centers in one country, an app could keep running elsewhere. That eliminates  the risk of one company deciding unilaterally that it no longer wants to be known as hosting a certain product.

Nevertheless, permitting large amounts of computing power to join the network one by one is different from the original vision of Bitcoin, which made itself resilient by allowing anyone to join the network, confident that it had a system that could not be corrupted by malicious participants.

Dfinity says it will launch with 48 data centers on three continents, housing 1,300 nodes. Williams argues that this approach allows it to become much bigger and run with much greater performance.

“In these Bitcoin and Ethereum networks, when you add more nodes it doesn’t increase throughput, it just increases security,” Hines said. But data centers should be able to quickly add on more power as needed. “That’s how the current internet grew,” he said.

TIC is a big, complex project that brings a lot of new technology and new ways of engaging to the table.

Hines said the early successes for TIC will come from one of the most demanding kinds of applications, social networks. Before the launch, Dfinity announced that it had built a TikTok alternative called CanCan. There’s another one coming called Open Chat.

For the Ethereum community: TIC could be a great way to further decentralize Ethereum’s successful DeFi and non-fungible token ecosystems, but it might also be a good place to port them over.

In particular, Lilic noted that TIC is built from the start to run the Web Assembly or WASM standard, which opens it up to a lot of developers who don’t need to learn anything new. “Giving the developer a way to write in whatever programming language they want and boom it compiles down, it’s very powerful,” Lilic said.

But Lilic agrees that Dfinity’s claims are somewhat disconcertingly large and that they won’t be verified until the thing is live and folks can start trying it out. He also warns that everyone should expect a lot of bugs early on, because that’s the natural order of new and complex software machines. Williams agreed with that, and TIC will launch as a beta product.

But still, the team seems confident and appears smart enough to know that a brave face and spin aren’t enough to keep applications running. So Dfinity might have very good reason to believe it will deliver as promised.

“If what they are saying is real, it could just eat everything. There could be the only things that are left are Bitcoin and Dfinity,” Lilic said.

It is looking like the dawn of a new beginning in the world of digital currency with the launch of Bazarswap. The feat is unprecedented in the industry, with the platform described as the first-of-its-kind OTC Decentralized Exchange for ERC20 Ethereum Tokens. As a P2P exchange, the platform is designed to support OTC trading in different types of tokens, with amazing features that have continued to endear it to crypto enthusiasts in different parts of the world.

The world of digital currency powered by Blockchain technology has disrupted the financial system across the globe. Over the years, several solutions and products have emerged to meet the diverse needs of the different categories of players in the market. According to Coinmarketcap, the global crypto market cap is $1.71T, with the popular Ethereum ranked among the top 5 currencies on the market. An offshoot of the crypto world is ERC20 Ethereum Tokens that are becoming increasingly popular by the day. Unfortunately, very little seems to be done by the different stakeholders in the market to address the needs of users of ERC20 Tokens, which is where the team at Bazarswap is looking to be of help.

What are ERC20 Ethereum Tokens?

ERC-20 tokens represent a diverse range of digital assets residing on the Ethereum blockchain. They are unlike other forms of digital assets as they do not have their own blockchain. The popularity of ERC-20 tokens has increased tremendously in recent times, with a report revealing that there are over 200,000 ERC-20 tokens coexisting on the Ethereum blockchain.

Similar to other digital assets, ERC20 Ethereum Tokens can be sent and received using Ethereum transactions. However, there are no dedicated P2P exchanges to cater to the needs of traders of these assets.

Features of Bazarswap

The user-friendly Bazarswap is coming as a lifesaver for users of digital assets, especially ERC 20 tokens, providing them with a safe and secure platform that eases the process of exchanging different assets. Bazarswap offers a wide array of features and functionalities to users as a P2P exchange. One of the unique benefits of the exchange is that it is the first 100% over-the-counter decentralized exchange for ERC20 Ethereum Tokens. In addition, Bazarswap ensures no spillage and zero exchange fees to users, with relatively low transaction gas costs.

Bazarswap offers direct and automatic payouts for buyers and sellers with no liquidity mechanism and an easy-to-navigate interface that allows users to easily add any ERC20 token for sale to the exchange. In line with the goal of ensuring transparency and security of users’ assets, all tokens put for sale are never transferred to the exchange as they remain in the seller’s wallet until they are sold or removed for sale.

Bazarswap is undoubtedly looking to disrupt the digital currency space with the features and benefits offered to users. In a related development, the exchange recently launched an offer that allows users to earn up to 6 ETH by setting their tokens for sale in Bazarswap. The move is in line with the goal of bringing more people into the amazing world of digital currency, especially ERC-20 tokens. The team also plans to launch Bazarswap on the Binance Smart Chain to support BEP20 Tokens.

For more information about Bazarswap as well as the fantastic features and benefits offered, including the recently launched 6 ETH initiative, please visit –  https://www.bazarswap.com/. The P2P ERC-20 tokens exchange also has a relatively strong presence on social media and can be found across several platforms, including  Twitter  and  Telegram.

(Photo : Screenshot From Pexels Official Website) Cryptocurrency 'Scheme' Revealed | Are All Cryptocurrencies Legit?

Cryptocurrency in itself is a legitimate form of digital currency but it is important to dissect it further to know the difference between coins and tokens.

While there are thousands of different tokens and coins out there, there could be just a number of them that can be considered as legitimate. 

According to the tweet by @mathieu_ouioui, there could be a way for people to make their own tokens with little to no value but still profit from them.

The account noted that people can create a coin and simply add 50k of their own money for some liquidity and easily make a video in order to advertise "it," which was earlier referred to as a "coin."

After advertising, the creator can then wait for people to buy it, then the creator can remove their 50k liquidity as well as maybe a 330k bonus while keeping 10% up to 15% of supply. After this, the creator can then let the project become "community driven" while also maintaining full control of the total liquidity.

The sketchy move was then discussed showing how some people can easily create a token, promote it, pull their money out, and create a hype to increase the token's growth.

When asked by another Twitter user to specify which token is referred to in the Tweet, @mathieu_ouioui then replied "$MM".

Another commenter to the post, @drewblockchainz, corrected the statement saying they aren't really coins unless they have their very own chain. The commenter then stated that they are called tokens, and that these are only copied smart contracts being referred to.

For more insights as to the token that was being referred to, $MM is a cryptocurrency that not a lot of people know about.

According to @sleeplessinva, $MM comes from @techleadhd, which was described as the "fiat-alt coin" we all have been looking for."

As per the tweet by @sleeplessinva, $MM actually grew from $1 to $21 in just a couple of days. The tweet then included the hashtags #cryptocurrency and the hashtag #MillionToken.

The conversation on Twitter shows a lot of gray areas that exist within the whole "cryptocurrency" discussion. For those that are thinking of investing in cryptocurrency, it is important to do sufficient research beforehand to make sure the movements or investments made are either less risky or more profitable.

Read Also:  Crypto Miners to Pay Higher Rates for Electricity in Kazakhstan | 'Negative Impact on Investment Attractiveness'

Just like any investment, it is important to maintain safe investing by doing proper research and only taking manageable risks. While the top 10 cryptocurrencies are still recovering, it is still unclear as to whether they will be bullish all the way to the moon. 

As of the moment, although Bitcoin is still quite far from it's all-time-high, the cryptocurrency can be seen recovering at a 3% increase during the past 24 hours.

Ethereum has also grown by 6% during the last 24 hours according to WhaleBots Alert on Telegram.

Disclaimer: TechTimes is impartial as to whether or not $MM is not a legitimate cryptocurrency. The story is focused on how easy it can be to create a coin.

Related Article:  [Breaking] South Korea Crypto Exchanges Could Sue Government for Alleged 'Unconstitutional' Banking Requirements

This article is owned by Tech Times

Written by Urian B.

Decentraland (CRYPTO: MANA) soared 23.55% to $0.81 over 24 hours as the buzz surrounding "TO THE MOON," the world’s first virtual and decentralized music festival, intensified.

What Happened: MANA has shot up 37.31% over a seven-day trailing period. The cryptocurrency rose 26.97% and 25.59% against Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) respectively.

See Also: How To Buy Decentraland Tokens (MANA)

The festival, a collaboration between non-fungible token or NFT marketplace KnownOrigin, Bear NFT, and Illumino NFT collective will be hosted on KnownOrigin’s virtual space in Decentraland.

MetaVerse Music Festival Live DJ Sets, dancing & kick ass visuals! Come hang out with us! Join us 11 July @decentraland https://t.co/jYobQ6GCZP

— KnownOrigin.io (@KnownOrigin_io) July 4, 2021

The event is slated to begin July 11 and will feature live performances by Autograf, Fred Thurst, Ookay, Snbrn, and Win and Woo.

Why It Matters: MANA trading volumes shot up 240.85% to $688.9 million as of press time, as per CoinMarketCap. The cryptocurrency has appreciated 935.14% since the year began.

It is noteworthy that Decentraland is a virtual reality universe, which touts itself as the “first fully decentralized world.”

An exclusive collection of NFTs has been announced and will be available through the festival, as per a Decentraland announcement.

Decentraland is using Ethereum (CRYPTO: ETH) technology to host the event. This year the world’s second-largest cryptocurrency by market cap has gained traction thanks to the buzz surrounding Decentralized Finance or DeFi and NFTs among other factors.

See Also: Beeple Says NFT Art Is 'Absolutely' In A Bubble After Making $69M In Such A Sale

Goldman Sachs said this week that ETH “currently looks like the cryptocurrency with the highest real use potential.” The investment bank said in a note that ETH could shoot past Bitcoin as the dominant store of value among cryptocurrencies. 

Read Next: Ethereum Co-Founder Vitalik Buterin Tells Dogecoin Bull Gary 'I Love The Doge Every Day'

If you’re new to the world of crypto, figuring out how to buy Bitcoin, Dogecoin, Ethereum and other cryptocurrencies can be confusing at first. Thankfully, it’s pretty simple to learn the ropes. You can start investing in cryptocurrency by following these five easy steps.

To buy cryptocurrency, first you need to pick a broker or a crypto exchange. While either lets you buy crypto, there are a few key differences between them to keep in mind.

A cryptocurrency exchange is a platform where buyers and sellers meet to trade cryptocurrencies. Exchanges often have relatively low fees, but they tend to have more complex interfaces with multiple trade types and advanced performance charts, all of which can make them intimidating for new crypto investors.

Some of the most well-known cryptocurrency exchanges are Coinbase, Gemini and Binance.US. While these companies’ standard trading interfaces may overwhelm beginners, particularly those without a background trading stocks, they also offer user-friendly easy purchase options.

The convenience comes at a cost, however, as the beginner-friendly options charge substantially more than it would cost to buy the same crypto via each platform’s standard trading interface. To save on costs, you might aim to learn enough to utilize the standard trading platforms before you make your fist crypto purchase—or not long after.

An important note: As someone new to crypto, you’ll want to make sure your exchange or brokerage of choice allows fiat currency transfers and purchases made with U.S. dollars. Some exchanges only allow you to buy crypto using another crypto, meaning you’d have to find another exchange to buy the tokens your preferred exchange accepts before you could begin trading crypto on that platform.

Cryptocurrency brokers take the complexity out of purchasing crypto, offering easy-to-use interfaces that interact with exchanges for you. Some charge higher fees than exchanges. Others claim to be “free” while making money by selling information about what you and other traders are buying and selling to large brokerages or funds or not executing your trade at the best possible market price. Robinhood and SoFi are two of the most well-known crypto brokers.

While they’re undeniably convenient, you have to be careful with brokers because you may face restrictions on moving your cryptocurrency holdings off the platform. At Robinhood and SoFi, for instance, you cannot transfer your crypto holdings out of your account. This may not seem like a huge deal, but advanced crypto investors prefer to hold their coins in crypto wallets for extra security. Some even choose hardware crypto wallets that are not connected to the internet for even more security.

Once you decide on a cryptocurrency broker or exchange, you can sign up to open an account. Depending on the platform and the amount you plan to buy, you may have to verify your identity. This is an essential step to prevent fraud and meet federal regulatory requirements.

You may not be able to buy or sell cryptocurrency until you complete the verification process. The platform may ask you to submit a copy of your driver’s license or passport, and you may even be asked to upload a selfie to prove your appearance matches the documents you submit.

To buy crypto, you’ll need to make sure you have funds in your account. You might deposit money into your crypto account by linking your bank account, authorizing a wire transfer or even making a payment with a debit or credit card. Depending on the exchange or broker and your funding method, you may have to wait a few days before you can use the money you deposit to buy cryptocurrency.

Here’s one big buyer beware: While some exchanges or brokers allow you to deposit money from a credit card, doing so is extremely risky—and expensive. Credit card companies process cryptocurrency purchases with credit cards as cash advances. This means they’re subject to higher interest rates than regular purchases, and you’ll also have to pay additional cash advance fees. For example, you may have to pay 5% of the transaction amount when you make a cash advance. This is on top of any fees that your crypto exchange or brokerage may charge; these can run up to 5% themselves, meaning you might lose 10% of your crypto purchase to fees.

Once there is money in your account, you’re ready to place your first cryptocurrency order. There are hundreds of cryptocurrencies to choose from, ranging from well-known names like Bitcoin and Ethereum to more obscure cryptos like Theta Fuel or Holo.

When you decide on which cryptocurrency to purchase, you can enter its ticker symbol—Bitcoin, for instance is BTC—and how many coins you’d like to purchase. With most exchanges and brokers, you can purchase fractional shares of cryptocurrency, allowing you to buy a sliver of high-priced tokens like Bitcoin or Ethereum that otherwise take thousands to own.

The symbols for the 10 biggest cryptocurrencies based on market capitalization* are as follows:

*Based on market capitalization as of June 28, 2021

Cryptocurrency exchanges are not backed by protections like the Federal Deposit Insurance Corp. (FDIC), and they’re at risk of theft or hacking. You could even lose your investment if you forget or lose the codes to access your account, as millions of dollars of Bitcoin already has been. That’s why it’s so important to have a secure storage place for your cryptocurrencies.

As noted above, if you’re buying cryptocurrency via a broker, you may have little to no choice in how your cryptocurrency is stored. If you purchase cryptocurrency through an exchange, you have more options:

While buying cryptocurrency is a major trend right now, it’s a volatile and risky investment choice. If investing in crypto on an exchange or via a broker doesn’t feel like the right choice for you, here’s are a few options to indirectly invest in Bitcoin and other cryptocurrencies:

ETFs are extremely popular investment tools that let you buy exposure to hundreds of individual investments in one fell swoop. This means they provide immediate diversification and are less risky than investing in individual investments.

There is a huge appetite for cryptocurrency ETFs, which would allow you to invest in many cryptocurrencies at once. No cryptocurrency ETFs are available for everyday investors quite yet, but there may be some soon. As of June 2021, the U.S. Securities and Exchange Commission (SEC) is reviewing three cryptocurrency ETF applications from Kryptcoin, VanEck and WisdomTree.

If you’d rather invest in companies with tangible products or services and that are subject to regulatory oversight—but still want exposure to the cryptocurrency market—you can buy stocks of companies that use or own cryptocurrencies and the blockchain that powers them. You’ll need an online brokerage account to buy shares of public companies like:

As with any investment, make sure you consider your investment goals and current financial situation before investing in cryptocurrency or individual companies that have a heavy stake in it. Cryptocurrency can be extremely volatile—a single tweet can make its price plummet—and it’s still a very speculative investment. This means you should invest carefully and with caution.

A cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.

The most popular cryptocurrency, Bitcoin, has had volatile price moves this year, reaching nearly $65,000 in April before losing nearly half its value in May. (You can check the current price to buy Bitcoin here .)

Here are seven things to ask about cryptocurrency, and what to watch out for.

Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides. Think of them as you would arcade tokens or casino chips. You’ll need to exchange real currency for the cryptocurrency to access the good or service.

Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this technology is its security.

» Learn more:  What is blockchain, and how does it work?

More than 10,000 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. And cryptocurrencies continue to proliferate, raising money through initial coin offerings, or ICOs. The total value of all cryptocurrencies on May 27, 2021, was more than $1.7 trillion — down from April high of $2.2 trillion, according to CoinMarketCap. The total value of all bitcoins, the most popular digital currency, was pegged at about $735 billion — down from April high of $1.2 trillion.

» Ready to invest? Here's our picks for best Bitcoin and cryptocurrency exchanges.

These are the 10 largest trading cryptocurrencies by market capitalization as tracked by CoinMarketCap, a cryptocurrency data and analytics provider.

Cryptocurrency

Market Capitalization

$735.3 billion

$324.2 billion

Binance Coin

$57.5 billion

$54.6 billion

$46.5 billion

$22.1 billion

$21.9 billion

Internet Computer

$16.7 billion

Data current as of May 27, 2021. 

» Learn more: How to invest in Bitcoin

Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular:

Supporters see cryptocurrencies such as Bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable

Some supporters like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation

Other supporters like the technology behind cryptocurrencies, the blockchain, because it’s a decentralized processing and recording system and can be more secure than traditional payment systems

Some speculators like cryptocurrencies because they’re going up in value and have no interest in the currencies’ long-term acceptance as a way to move money

» Learn more: How to buy Ethereum

Cryptocurrencies may go up in value, but many investors see them as mere speculations, not real investments. The reason? Just like real currencies, cryptocurrencies generate no cash flow, so for you to profit, someone has to pay more for the currency than you did.

That’s what’s called “the greater fool” theory of investment. Contrast that to a well-managed business, which increases its value over time by growing the profitability and cash flow of the operation.

Some notable voices in the investment community have advised would-be investors to steer clear of them. Of particular note, legendary investor Warren Buffett compared Bitcoin to paper checks: “It's a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?"

» Learn more:  Is Bitcoin safe?

For those who see cryptocurrencies such as Bitcoin as the currency of the future, it should be noted that a currency needs stability so that merchants and consumers can determine what a fair price is for goods. Bitcoin and other cryptocurrencies have been anything but stable through much of their history. For example, while Bitcoin traded at close to $20,000 in December 2017, its value then dropped to as low as about $3,200 a year later. By December 2020, it was trading at record levels again.

This price volatility creates a conundrum. If bitcoins might be worth a lot more in the future, people are less likely to spend and circulate them today, making them less viable as a currency. Why spend a bitcoin when it could be worth three times the value next year?

While some cryptocurrencies, including Bitcoin, are available for purchase with U.S. dollars, others require that you pay with bitcoins or another cryptocurrency.

To buy cryptocurrencies, you’ll need a “wallet,” an online app that can hold your currency. Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as Bitcoin or Ethereum. Here's more on how to invest in Bitcoin.

Coinbase is one popular cryptocurrency trading exchange where you can create both a wallet and buy and sell Bitcoin and other cryptocurrencies. Also, a growing number of online brokers offer cryptocurrencies, such as eToro , Tradestation and Sofi Active Investing.  Robinhood offers free cryptocurrency trades (Robinhood Crypto is available in most, but not all, U.S. states).

» Learn more: Bitcoin wallet: How to choose the best for you.

There’s no question that they’re legal in the United States, though China has essentially banned their use, and ultimately whether they’re legal depends on each individual country. Also be sure to consider how to protect yourself from fraudsters who see cryptocurrencies as an opportunity to bilk investors. As always, buyer beware.

» Beyond Bitcoin: What are altcoins, and how do they work?

If you’re looking to buy a cryptocurrency in an ICO, read the fine print in the company’s prospectus for this information:

Who owns the company? An identifiable and well-known owner is a positive sign.

Are there other major investors who are investing in it? It’s a good sign if other well-known investors want a piece of the currency.

Will you own a stake in the company or just currency or tokens? This distinction is important. Owning a stake means you get to participate in its earnings (you’re an owner), while buying tokens simply means you're entitled to use them, like chips in a casino.

Is the currency already developed, or is the company looking to raise money to develop it? The further along the product, the less risky it is.

It can take a lot of work to comb through a prospectus; the more detail it has, the better your chances it’s legitimate. But even legitimacy doesn’t mean the currency will succeed. That’s an entirely separate question, and that requires a lot of market savvy.

But beyond those concerns, just having cryptocurrency exposes you to the risk of theft, as hackers try to penetrate the computer networks that maintain your assets. One high-profile exchange declared bankruptcy in 2014 after hackers stole hundreds of millions of dollars in bitcoins. Those aren’t typical risks for investing in stocks and funds on major U.S. exchanges.

Cryptocurrency is an incredibly speculative and volatile buy. Stock trading of established companies is generally less risky than investing in cryptocurrencies such as Bitcoin.

Of the online brokerages and cryptocurrency exchanges that NerdWallet reviews, the following current offer cryptocurrencies.

Available for:

Binance.US

Access to buy and sell more than 50 cryptocurrencies.

Read review

Trading platform with access to 18 cryptocurrencies.

Ability to buy and sell 40 cryptocurrencies.

Seven cryptocurrencies including Bitcoin, Bitcoin Cash and Ethereum.

SoFi Active Investing

Offers 20 cryptocurrencies for trading including Bitcoin, Ethereum and Litecoin.

TradeStation

Offers trading for five cryptocurrencies, including Bitcoin, Bitcoin Cash and Ethereum.

Offers four cryptocurrencies for trading: Bitcoin, Bitcoin Cash, Ethereum and Litecoin.

Disclosure: The author held no positions in the aforementioned securities at the original time of publication.

Confused about cryptocurrencies, like bitcoin and Ethereum? You’re not alone. Before you use or invest in cryptocurrency, know what makes it different from cash and other payment methods, and how to spot cryptocurrency scams or detect cryptocurrency accounts that may be compromised.

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.

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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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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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

Over the past week, influencers who've promoted altcoins, highly volatile alternative cryptocurrencies, have sought to distance themselves from the coins they once supported.

"[I] let my followers know and was extremely clear about how you shouldn't invest a dollar into this... that you can't afford to lose," said FaZe Banks, a co-founder of the popular esports team FaZe Clan, in a statement posted on Twitter. "To suggest I would ever knowingly scam my following for a quick buck is unfair and simply not true."

Banks' post was in response to an altcoin called BankSocial, which he promoted through a giveaway in May. BankSocial rose in value right after Banks' promotion and then promptly plummeted after many big early investors sold off. This is known as a pump and dump and it often leaves those who got in at the time of an influencers' promotion at a loss of their investment.

However, influencers aren't the only ones looking to set the record straight. After Mashable's investigation into influencers promoting altcoins published last week, the team behind BankSocial reached out.

Mashable's conversation with BankSocial provides an interesting peek behind the scenes of one such deal with an influencer to hawk these cryptocurrencies to their fans.

"They pumped it and then they dumped it," explained BankSocial CEO John Wingate in a phone call with Mashable, referring to FaZe Banks and those who bought into the token on his advice. "Then he backed out of the deal."

Wingate claims that BankSocial was a victim as well. The company claims it paid FaZe Banks to be an ambassador for the token and had a deal for a certain number of promotional posts. The token tanked shortly after Banks' promotion. BankSocial feels the dump was spurred by those within Banks' orbit who allegedly invested due to his promotion with the intent to sell quickly. And then BankSocial got caught up in the controversy of FaZe Banks promoting what turned out to be a pump and dump of their token, while Banks abruptly cut their deal short.

BankSocial is now trying to protect their project and its brand name in the aftermath.

It should be noted that looking through some since-deleted posts from FaZe Banks promoting BankSocial, Banks never discloses his exact relationship with the altcoin.

Shortly after Banks sent out his promotion of BankSocial via the giveaway, another member of FaZe Clan, FaZe Kay, replied on Twitter about his quick return on investment.

"I'm 2x already," Kay tweeted.

"When it all went down, we got on the phone with Ricky [Banks] and we were like, what the fuck? Like, why are your guys posting I'm making '2x'...you pretty much laid out [in the article] exactly how we felt after the whole thing went down," Wingate said, referring to Kay doubling his investment in BankSocial.

BankSocial provided Mashable with some details of their deal with FaZe Banks. They did not pay him in the token, so his take-home pay was not directly correlated with the altcoins performance. According to BankSocial, the company was looking for more online engagement and brand awareness than actual investment in the project.

BankSocial previously had highs of as many as 8,000 wallet holders, but have lost 400 to 500 wallets since that time. Wingate told Mashable only around 200 wallet holders that bought during the FaZe Banks promotion were still holding onto the token.

While Wingate wouldn't share exactly how much they paid FaZe Banks, he did provide some details. BankSocial did not pay Banks in the altcoin, so his pay was not directly correlated with how the token performed. "It wasn't a small amount," Wingate said in terms of how much Banks was paid for his promotion of BankSocial. "For what I'm concerned, it was a substantial amount."

Wingate gave me a peek into the pay range we're usually talking about when it comes to these deals during another part of our conversation where he discussed how easy it would have been for them to hire other influencers in the aftermath to pump the coin again.

"We had the ability...to get another influencer to pump it up," he explained. "We have the ability to do it. We could go hire some guy for $50,000 or $100,000 or whatever it is."

This is something Wingate says BankSocial did not want to do, saying they are through with influencers after the failed FaZe Banks deal and are only interested in long-term relationships with ambassadors, such as more well-established professional athletes.

"We really do want to legitimize as much as we can how crypto can be beneficial to decentralization of the traditional economic models," Wingate said.

If one is wondering why BankSocial went with FaZe Banks to promote the altcoin, look no further than his name. "Everybody was coming to us wanting to be an influencer for BankSocial," Wingate claimed. "We only made a deal with one influencer because his name was Banks...we thought it was the perfect play."

Wingate did say the company looked into Banks before signing the deal. According to the BankSocial CEO, they couldn't find any other cryptocurrency promotions from Banks, which was a positive in their eyes.

"You know, he seemed clean. Right?" Wingate told Mashable. "Like he seemed like we were really getting a long-term ambassador. I'm not going to go out on a limb and say that FaZe Banks did this intentionally. Right? Because I don't know," said Wingate.

According to BankSocial CEO Wingate, the deal ended before it was supposed to because Banks wanted out. However, Banks allegedly kept the money BankSocial paid him despite not following through on the promotions.

"It's very odd that he was supposed to do several more posts [as part of our deal] and then he cited some loophole that he had that says if the token doesn't perform to a certain point, he's not going to have to promote any more," Wingate shared. "Well, it's like, yeah, you basically did that yourself, you know?"

FaZe Banks has continuously stood by his claim that BankSocial is a "project he genuinely believes in," claiming this is why he shared it with his fans. He says he has personally invested his own money in the token and still holds onto it.

Mashable has not been able to confirm this claim, as individuals can hold multiple wallets.

Mashable attempted to reach FaZe Banks to inquire about his deal with BankSocial. After a brief back-and-forth with a FaZe Clan press representative over email, Mashable did not hear back. We have provided the contact with questions and will update this piece if we do.

FaZe Banks' previously mentioned statement on BankSocial, which was released on Twitter, was posted as a reply to YouTuber Coffeezilla. The creator hosts a popular channel on the platform that looks into online scams. He recently uploaded a video looking into FaZe Clan's promotions of cryptocurrencies.

After the video was posted, Banks reached out to Coffeezilla. The video did not include the BankSocial issue, but it did spark a broader online conversation about FaZe Clan and crypto.

According to a tweet from Banks, he had a private conversation with Coffeezilla to "clear his name" and "show him all the receipts."

Coffeezilla did not share the details of the call with Banks out of respect for privacy, but he did provide some broader details in a brief phone discussion with Mashable.

According to Coffeezilla, the $10,000 giveaway that Banks ran as a promotion for BankSocial did happen. Banks showed Coffeezilla the wallet transaction. This shows just how much of the token was transferred to another wallet holder, in this case the winner of the giveaway.

However, being that the giveaway was in the form of the token, the dump substantially affected the value of the token. So, the giveaway amounted to substantially less than $10,000 because the coin immediately tanked.

Banks later publicly shared the Twitter handle of the winner. BankSocial CEO Wingate told me that he could not confirm who received it and the legitimacy of the giveaway. The only proof he had that the giveaway happened was Banks' tweet and the reaction from the winner, which "seemed genuine."

While Banks claims to still hold his BankSocial token investment, Coffeezilla said the wallet he was shown did not hold any of the tokens. It's unclear however if Banks has a separate wallet holding BankSocial tokens, which is possible.

Banks has not provided any other details of the deal, such as the "substantial amount" he was paid in U.S. dollars by BankSocial.

With what we know and the since-deleted social media posts available to us, Banks' promotion of BankSocial does not appear to comply with the Federal Trade Commissions' (FTC) own guidelines for influencers posting paid advertisements to their social channels.

FaZe Banks and BankSocial are far from the only people trying to clear the air regarding the pervasion of influencers pushing altcoins.

"I want you all to know that I had no ill intent promoting any crypto alt coins," reads a June 27 tweet from FaZe Kay. "I honestly & naively thought we all had a chance to win which just isn’t the case."

"It was so irresponsible of me to speak publicly about any coins without knowing more & knowing now that they can do more harm than good," he continued.

FaZe Kay was a prominent promoter of numerous altcoins. He, along with other members of FaZe Clan and YouTubers like RiceGum, pushed pump and dump cryptocurrencies to their fans. Perhaps the most egregious example was Save The Kids token, which prominently featured the social media stars on their website. The cryptocurrency lasted around two weeks before, according to the developer contracted for the project, the founders "disappeared" with the funding.

Sometime late last week, in the ongoing effort for influencers to back away from their altcoin promotions, Save The Kids removed these influencers from its website. But just because FaZe Clan is backing off altcoin marketing for now, that doesn't mean the problem is gone.

Three days ago, YouTube superstar-turned-boxer Logan Paul announced he was "all in" on the "dumbest, most ridiculous shitcoin he's ever seen," called Dink Doink.

Dink Doink did indeed pump on June 28, when Paul posted about the altcoin. The downward trajectory started not long after, later that same day. Just three days later it's now lost more than half of its value. It's unclear if Paul is still "all in."

And, on the morning of July 1, right before this piece was published, the billionaire CEO of Tesla and a regular promoter of cryptocurrency, Elon Musk, tweeted about Doge.

"Baby Doge, doo, doo, doo, doo, doo," Musk tweeted in reference to the children's song, "Baby Shark."

However, Musk wasn't talking about Dogecoin, the popular meme-based cryptocurrency that has acted as the main inspiration for the vast majority of altcoins. No, he was talking about a new altcoin trying to piggyback off of Dogecoin's success, called Baby Doge.

Baby Doge immediately almost doubled in value and reached an all-time high for the token after Musk's tweet.

It remains to be seen what happens with Baby Doge next, but it feels like we know how this story ends.

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.

You hold your moneyMoney held by financial institutions Transfers happen in minutesPayments can take days to processTransactions are pseudonymous Financial activity is coupled to your identity (social security number, name, address, etc.)Market is always openMarket closes Built on transparency – anyone can inspect the systemFinancial institutions are closed books.comparison-table tr td:nth-child(){border-left: 10px solid #5bffb1;border-right: 10px solid #5bffb1;}.comparison-table tr:first-child td:nth-child(){border-top: 10px solid #5bffb1}.comparison-table tr:last-child td:nth-child(){border-bottom: 10px solid #5bffb1}

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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OWNR Wallet's cryptocurrency system aims to provide the best tools on the market for using crypto

TALLINN, Estonia, July 13, 2021 (GLOBE NEWSWIRE) -- Cryptocurrency ecosystem OWNR Wallet announces its expansion to 216 countries, bringing its crypto-platform to more people all over the world. OWNR Wallet provides a range of ways for customers to receive transfers or make purchases using cryptocurrency, broadening access and removing barriers in the growing crypto market.

OWNR Wallet is the easiest way to purchase crypto using bank cards. It offers a prepaid Visa card so that customers can use Bitcoin, Ethereum and other currencies to pay in-store. Customers order a physical or virtual card and can use it at millions of locations to make payments or cash withdrawals from ATMs.

OWNR expanded its groundbreaking non-custodial wallet to more countries in Asia, including South Korea and Japan. The team worked to add more payment integrations to its platform so that all banks in these countries can work with OWNR's transactions.

OWNR also expanded to South America, Oceania and Australia, and prioritized Egypt, Nigeria, Tunisia, and 43 other African countries to ensure customers in those countries have access to the coin-buying platform.

OWNR Wallet is an all-in-one crypto tool that provides a range of ways to buy, sell, and trade using cryptocurrencies. In addition to providing the prepaid bank cards, it also offers a crypto-to-crypto exchange to trade or sell coins. This service allows users to customize fees to adjust for potential price spikes or to speed up transactions. Users can add OWNR's exchange engine to their platform or website.

OWNR also offers a payment gateway so that the clients of a company can make purchases using OWNR's system, streamlining the payment process. OWNR already provides this payment gateway to customers of Bitfinex, one of the world's largest cryptocurrency exchanges.

OWNR Wallet is constantly working to update and improve its multi-platform cryptocurrency ecosystem by adding new features. It aims to be the only wallet customers need, providing everything in one interface.

OWNR Wallet supports the following cryptocurrencies: BTC, BCH, ETH, LTC, DASH, DOGE, BCH-SV, OMNI USDT, EOS, and ERC-20 tokens. OWNR is available for Windows, macOS, and Linux operating systems and can be downloaded on the iOS App Store or Google Play. For more information about OWNR Wallet visit: https://ownrwallet.com/

Social Links

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Media Contact

Company: OWNR Wallet OU

Contact: Grygory Sytenko, Co-Founder & CEO

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SOURCE: OWNR Wallet OU

By now, investors will have a relatively good understanding about the biggest cryptocurrencies in the market, however, the more niche coins such as cardano, litecoin and polkadot to name just a few are now also being wrapped into exchange-traded product (ETP) format.

With bitcoin, ethereum and others setting fresh all-time highs through the first half of 2021, many investors have started looking to the more dimly lit corners of the crypto universe, to the coins whose day in the sun is potentially yet to come.

Happy to service this demand, ETP issuers have taken to launching products targeting increasingly innovative, early-days – and frankly, niche – digital assets, to offer the reassurance of on-exchange trading to those looking to speculate on ‘the next big thing’.

Cardano ADA

The largest of the coins on our list is ADA, from the cardano platform, which has a market cap of $42.5bn.

The cardano infrastructure relies on Ouboros, currently considered the world’s largest proof-of-stake (PoS) protocol. The advantage of this framework is its much lower energy consumption versus the proof-of-work (PoW) protocols currently used by most cryptos. In fact, the Ethereum Foundation has announced it plans to shift its native currency onto PoS.

Cardano allows developers to construct decentralised applications and conduct peer-to-peer transactions via its native token, ADA.

Now the world’s fourth-largest crypto infrastructure, cardano has a settlement layer, similar to bitcoin, and a computation layer, similar to ethereum.

At present, the 21Shares Cardano ADA ETP (AADA) and the Valour Cardano SEK ETP offer investors access to the coin within an exchange-traded wrapper.

Ripple XRP

Starting life as opencoin before transforming into ripple, the platform has its own token, XRP, which is designed to allow financial institutions to transfer money with minimal wait times and fees.  

By 2018, over 100 banks were using ripple’s xcurrent messaging technology but avoided XRP due to concerns around volatility.  

Based on a common shared ledger, the platform relies on a network of independent servers that compare transaction records. Ripple can support a range of tokens representing fiat currencies, cryptocurrencies, commodities and other units of value such as frequent flier miles and mobile minutes.

A sticking point for the platform was the lawsuit brought against it by the Securities and Exchange Commission, with the regulator stating XRP had been illegally marketed to retail investors without making clear the risks involved in trading the asset.

This update saw 21Shares remove XRP from its mixed-basket HODL ETP but investors can still gain exposure via the 21Shares Ripple XRP ETP (AXRP) and the CoinShares Physical XRP (XRPL). At present, Ripple has a market cap of $31.8bn but in 2017, was briefly the world’s second-largest crypto.

Polkadot DOT

Moving down the list in terms of market cap, the $14.9bn polkadot platform was created by ethereum co-founder, Gavin Wood. 

Designed as a sharded heterogenous multi-chain architecture, polkadot allows external networks and customised layer one ‘parachains’ to communicate, creating a connected internet of blockchains.

Wood developed the polkadot protocol while mulling the sharding hurdles that might be faced in the ethereum 2.0 specification. By embedding sharding, the platform breaks the blockchain network down into separate entities to reduce latency – allowing it to scale and process more transactions per second.

Currently, exchange-traded exposure to the protocol is offered by two products from Swiss issuers, the 21Shares Polkadot ETP (ADOT) and the Valour Polkadot SEK ETP.

Litecoin LTC

Beginning as an early bitcoin spin-off in 2011, litecoin is a peer-to-peer digital asset released via an open-source client on GitHub, with a market cap of $9.7bn. 

Though bearing many similarities to bitcoin in its technical makeup, litecoin differentiates from the mega -ap coin in its lower block generation time (two-and-a-half minutes versus ten minutes), a higher maximum number of coins, and different hashing algorithms and user interface. 

The coin also uses scrypt in its PoW algorithm, which is a sequential memory-hard function that requires more memory than non-memory-hard equivalents. As a consequence, the devices used for Litecoin mining are more complex and expensive than those used for bitcoin prospecting.

The CoinShares Physical Litecoin (LITE) and ETC Group Litecoin ETC (ELTC) currently track the performance of the asset.

Solana SOL

With only a marginally smaller market cap of $9.1bn, solana is a third-generation PoS blockchain that creates a trustless system for determining transaction time called Proof of History (PoH).

Versus a PoW protocol, a PoH orders transactions in a series of hashes, allowing validators to process and transmit less information in each block, in turn reducing the time it takes to confirm a new block. 

Solana also uses other capabilities – Tower BFT, Turbine, Gulf Stream, Sealevel, Pipelining, Cloudbreak, Archivers – to create a network with a 400 millisecond block time, versus 10 minutes per block for bitcoin and 15 seconds per block for ethereum.

Earlier this week, the first ETP targeting solana, the Solana (SOL) ETP (ASOL), was launched by 21Shares.

Stellar XLM

Finally, we have stellar, an open-source, decentralised protocol for digital currency to fiat currency transfers with a market cap of $6.3bn.

Founded by ripple co-founder, Jed McCaleb, the platform uses the SCP protocol created by Stanford professor David  Mazières.

Since 2014, stellar and its native token XLM/lumens have been backed by $3m in seed funding from Stripe. The platform was then integrated into South African messaging platform, Vumi, and Nigerian microfinance facilitator, Oradian, in 2015.

A year later, the crypto integrated with Deloitte to create cross-border payments application, Deloitte Digital Bank. And since, stellar has partnered with the ICICI Bank in India, African mobile payments firm Flutterwave, French remittances company Tempo Money Transfer, IBM and the Ministry of Digital Transformation of Ukraine.

At present, investors can gain exposure to the digital asset via the 21Shares Stellar ETP (AXLM).

Just click on any of the ETF links in the article above and you will get access to a whole host of data including:

Please note: The tool is provided by ETF Logic who shall process your personal data in accordance with their privacy policy.

Depending on the month, day, hour, or minute you check the news, you might think investing in cryptocurrency or being paid in cryptocurrency is the greatest idea since sliced bread or the worst possible use of your money, ever. Whether you agree with Warren Buffett that cryptocurrency has “no value” or think Bitcoin’s value will rise to $300,000 in 2022, there’s one thing about cryptocurrency that isn’t up for debate: getting it right on tax returns has never been more critical.

The IRS is aggressively working to identify and root out United States taxpayers who are required to report cryptocurrency transactions, but either incorrectly report or omit cryptocurrency entirely from their tax returns. Understanding the tax implications of buying, selling, exchanging, or earning cryptocurrency has never been more important. We’ve identified ten common mistakes made when reporting (or not reporting) cryptocurrency transactions to the Internal Revenue Service, and will detail how to avoid each mistake in its own article. Finally, we will end the Top 10 Crypto Tax Mistakes To Avoid series with suggestions for the IRS on how to better reach out to taxpayers who are making Crypto Tax Mistakes, and how to bring those taxpayers back into compliance. As a tax litigator, it is my job to Monday-Morning Quarterback how taxpayers and their tax professionals did the first time around. This series aims to help folks get it right from the beginning, or identify possible mistakes that may need to be addressed.

Number 10: Improperly Reporting Cryptocurrency Received From Air-drops, Forks, and Splits

“Air-drops, forks, and splits” may be foreign terms to rookie cryptocurrency investors, but it’s important for anyone even dabbling in this area to become quickly familiar with them as they have tax implications. Revenue Ruling 2019-24 specifically addresses these thorny issues, and we will help you work through the complexities of these events and how they impact your tax reporting requirements.

Number 9: Failing to Report Crypto-to-Crypto Transactions

It is common for crypto investors to exchange one cryptocurrency for another in a coin-to-coin transaction. It’s important to understand these are taxable events and how they should be reported.

Number 8: Using the Wrong Form to Report Cryptocurrency Transactions

Are you being paid in cryptocurrency? Did you exchange a car for crypto or vise versa? Are you simply investing in crypto? Are you mining crypto? Each one of these potential transactions may require a different IRS form to accurately report the transaction and calculate the tax consequences.

Number 7: Improperly Reporting Cryptocurrency Received as Earned Income

Cryptocurrency received in exchange for performing services is not taxed the same as the sale of cryptocurrency held for investment. We will explore and explain proper tax treatment of cryptocurrency as income.

Number 6: Failing to Report Cryptocurrency Exchanged for Goods and Services

Thinking of paying for your new outdoor furniture from overstock.com in Bitcoin? As more and more retailers accept cryptocurrency, taxpayers need to understand the tax implications and reporting requirements associated with paying in crypto.

Number 5: Failure to Prepare and Maintain Adequate (or any!) Records Reflecting Crypto Transactions

As with any taxable sale or exchange of property, taxpayers must be able to establish basis in an asset, including cryptocurrency, in order to calculate the gain or loss and resulting tax due. Taxpayers who don’t keep good records may find themselves paying tax on the sale of crypto as if they had no basis at all in the asset. Taxpayers should resist the urge to be lulled into laziness and assume all records will be available electronically come tax time.

Number 4: Failure to Properly Calculate Cryptocurrency Gains and Losses

Did you lose money on cryptocurrency? Losses can and should be reported to the IRS just like gains, and losses may completely offset any tax consequences of gains. But if they do, taxpayers still need to report the transactions. Cryptocurrency investors are not uniquely required to only report and pay taxes on gains, and should include losses and gains when calculating tax due.

Number 3: Using Like-kind Exchanges to Report Crypto

In all fairness, this isn’t really something that I have seen any of my clients do. But because crypto held as investment is required to be reported as property, it makes sense that crypto exchanges for property, like a Tesla or exchanging Bitcoin for Ethereum should qualify for a like-kind exchange under section 1031 of the Internal Revenue Code. Unfortunately, it doesn’t.

Number 2: Failure to Take Proper Steps to Pass on Your Cryptocurrency in the Event of Your Death or Disability

Do your loved ones know how to access your cryptocurrency accounts? If you die or become disabled, the value of your cryptocurrency may well be included in your taxable estate, even if your loved ones can’t actually access or unlock the value of that asset. We will explore best practices for how to ensure your loved ones are not left cleaning up your crypto mess without any access to the value of the asset.

Number 1: Failure to Report Cryptocurrency at All

By far the worst error - whether intentional or unintentional - taxpayers make when it comes to taxes and cryptocurrency is failure to report crypto transactions at all. Carolyn Schenk, the National Fraud Counsel & Assistance Division Counsel for IRS Office of Chief Counsel put it this way when addressing crypto investors who are not reporting income, “We see you.”

Putting it all Together

Since I’m not the Commissioner of the Internal Revenue Service, I don’t get to decide how the IRS is going to handle increasing and improving outreach to taxpayers who should be reporting cryptocurrency transactions on their tax returns, and I don’t get to decide how the IRS is going to bring those taxpayers into compliance. But as a tax litigator, I have a lot of ideas on how I think the IRS should be accomplishing these goals. We will finish our series with a close look at how the IRS has been handling outreach and enforcement so far, and what we’d like to see in the future.

Special thanks to Moore Tax Law Group's summer associate, Ali Hmoud, who is providing significant assistance in completing this series.

I try tax cases in tax court and federal courts, represent taxpayers who are examined by the IRS, and represent tax professionals who get into disciplinary trouble.  I'm

I try tax cases in tax court and federal courts, represent taxpayers who are examined by the IRS, and represent tax professionals who get into disciplinary trouble.  I'm also a professional partnership representative.  My practice is in Chicago but my clients are all over the country and the world.  Check out my website at www.mooretaxlawgroup.com.  Email me at guinevere.moore@mooretaxlawgroup.com and follow me at @Mommytax