Category: Cryptocurrency

Posted in Bitcoin, Cryptocurrency, Exchanges

Navigating the Crypto Waters: The Essential Guide to Converting Bitcoin to Monero

Written by allsafetoken Published

In the diverse and ever-changing world of cryptocurrency, the ability to convert between different types of digital currencies is a pivotal skill for enthusiasts and investors alike. The process of converting Bitcoin (BTC), the original cryptocurrency, to Monero (XMR), known for its heightened privacy features, is a journey through the fascinating landscape of crypto versatility. This comprehensive guide, spanning about 1000 words, is designed to shed light on the nuances of convert BTC to XMR, blending practical steps with strategic insights and a thorough understanding of the crypto exchange ecosystem.

I. The Genesis and the Ghost: Understanding Bitcoin and Monero

To comprehend the essence of this conversion, it is crucial to grasp the fundamental nature of both Bitcoin and Monero. Bitcoin, the first cryptocurrency, emerged as a decentralized digital currency and has since become synonymous with the term ‘cryptocurrency.’ On the other hand, Monero is often celebrated for its exceptional privacy features, which mask the details of transactions and parties involved. This section delves into the technological underpinnings, use-cases, and community perception of BTC and XMR, setting the stage for understanding their individual significance in the market.

II. Why Convert BTC to XMR? Unveiling the Motives

This segment explores the varied reasons behind the decision to convert BTC to XMR. For some, the allure lies in Monero’s enhanced privacy and security features, appealing to those who prioritize anonymity in their transactions. For others, it’s a strategic diversification move in their cryptocurrency portfolio. Here, we analyze the market trends and technological aspects that make XMR an attractive option for BTC holders.

III. The Conversion Blueprint: A Step-by-Step Guide

At the core of this article is a detailed guide to the process of converting BTC to XMR:

Choosing a Cryptocurrency Exchange: A discussion on selecting a reliable exchange that supports both BTC and XMR, focusing on factors like security, liquidity, user interface, and transaction fees.
Setting Up Your Wallets: Essential steps to establish and secure digital wallets for BTC and XMR, emphasizing the importance of security measures like two-factor authentication.
Initiating the Transfer: Guidance on transferring Bitcoin to the chosen exchange, with a focus on accurate transaction details and network fees.
Executing the Conversion: Detailed instructions on how to convert BTC to XMR, including order types and understanding the exchange rate.
Securing Your Monero: Steps to withdraw XMR to your personal wallet, with an emphasis on the security and verification of transaction details.

IV. Deciphering Exchange Rates and Fees

In-depth analysis of the factors that influence the exchange rates between BTC and XMR, and their impact on the conversion process. This section also sheds light on the different types of fees involved in the conversion, providing tips on how to minimize these costs.

V. Timing Your Conversion: Market Dynamics and Analysis

Insights into the optimal timing for converting BTC to XMR, considering the volatile nature of the cryptocurrency market. This includes leveraging market analysis tools, staying informed on crypto news, and understanding how global economic events may affect the value of BTC and XMR.

VI. Security Protocols: Fortifying Your Digital Assets

A critical examination of security in cryptocurrency transactions. This segment highlights best practices for protecting your digital assets, including tips on avoiding common security pitfalls and staying vigilant against online threats.

VII. Monero’s Trajectory: A Peek into the Future

An exploration of the future prospects of Monero in the cryptocurrency market. This section discusses the potential growth of XMR, its technological advancements, and what these developments could mean for investors and the digital finance landscape.

VIII. Legal and Regulatory Landscape

A concise overview of the legal and regulatory considerations surrounding cryptocurrency exchanges, particularly in the context of privacy-focused coins like Monero. The importance of compliance with tax laws and regulatory requirements across different jurisdictions is emphasized.

IX. Conclusion: Mastering the Art of Crypto Conversion

The article concludes by underscoring the importance of understanding and engaging in cryptocurrency conversions. It positions the process of converting BTC to XMR as not just a transactional act but as a strategic financial decision aligned with the evolving trends of the digital economy.

X. Continuing Your Crypto Education

For those eager to deepen their understanding, the article recommends further resources, including forums, educational platforms, and news sites dedicated to cryptocurrency trends and updates, fostering continuous learning in the ever-evolving world of digital currencies.

Posted in Cryptocurrency, Exchanges

Swapping SOL to ETH: A Comprehensive Guide to Inter-Chain Exchange

Written by allsafetoken Published

Amidst the vast ocean of cryptocurrencies, two titans that have emerged with solid use cases and dedicated ecosystems are Solana (with its native token SOL) and Ethereum (with its native token ETH). Both platforms are paving the way for decentralized applications (dApps), but there can be instances where you might want to swap SOL for ETH. Whether adjusting your investment portfolio or navigating between different dApps, understanding how to convert between these prominent cryptocurrencies is crucial. This article delves deep into the process of swapping SOL to ETH.

The Basics: Solana (SOL) and Ethereum (ETH)

Here is a brief refresher on the two tokens in question:

  1. Solana (SOL): Solana is renowned for its high throughput and low transaction costs, making it an attractive platform for developers looking to build scalable apps. SOL is its native token for staking, transaction fees, and participating in the network’s proof-of-history consensus.
  2. Ethereum (ETH): As one of the pioneers of smart contracts and dApps, Ethereum has a vast ecosystem. ETH, the network’s cryptocurrency, is used for transaction fees and computational services.

Why Swap SOL to ETH?

  1. Portfolio Diversification: Investors often diversify their holdings to hedge against market volatility.
  2. Accessing Different dApps: Some dApps are exclusive to Ethereum, necessitating the need for ETH.
  3. Speculative Trading: Traders might swap based on market analysis and potential profit margins.

How to Swap SOL to ETH

  1. Centralized Exchanges (CEX):
    • Binance: One of the largest global exchanges, Binance offers trading pairs that allow users to swap SOL for ETH directly.
    • FTX: Known for its diverse range of crypto offerings, FTX also supports direct SOL to ETH swaps.
    • KuCoin: Another central platform, KuCoin, provides seamless exchange services for SOL and ETH pairs.
  1. Decentralized Exchanges (DEX):
    • Wormhole: Acting as a bridge between Solana and Ethereum, Wormhole allows users to move assets, including SOL, to Ethereum’s ERC-20 format, which can then be swapped for ETH using Ethereum-based DEXes like Uniswap or SushiSwap.
    • Saber: While primarily a stablecoin exchange on Solana, Saber’s interoperability features can be a stepping stone in the SOL to ETH conversion process.
  1. Cross-chain Swap Platforms:
    • Orca: This Solana-based platform offers a wide array of trading pairs and can be a starting point for those looking to swap SOL with assets that can then be bridged to Ethereum.
  1. Direct Peer-to-Peer (P2P) Exchange: Platforms like LocalCryptos allow users to directly negotiate and trade cryptocurrencies, including SOL, for ETH without intermediaries.

Critical Considerations in the Swapping Process

  1. Transaction Fees: Both Solana and Ethereum networks have transaction costs. Ensure you know these fees, including those imposed by exchanges or bridges.
  2. Slippage: On DEXes, especially during high volatility periods, the executed price might differ slightly from the expected price due to slippage.
  3. Network Confirmations: Different platforms require varying numbers of network confirmations before crediting funds, affecting the speed of the swap.
  4. Liquidity: Ensure the media or pools you use have ample liquidity to facilitate a smooth exchange.
  5. Security: Always prioritize safety. Use trusted platforms, double-check addresses, and employ wallets with solid security features.

Future Directions in SOL-ETH Interoperability

With the growing recognition of both Solana and Ethereum, initiatives aimed at enhancing interoperability between these chains are on the rise. Future solutions might offer more streamlined and cost-effective methods to swap SOL for ETH, amplifying the synergy between these two blockchain giants.

Conclusion

Swapping SOL to ETH provides a gateway to navigate between two of the most influential and bustling ecosystems in the crypto world. As decentralized finance (DeFi), NFTs, and other blockchain applications expand, seamlessly moving assets across chains will become increasingly vital. With the proper knowledge and tools, you can make informed decisions and navigate the SOL to ETH conversion process confidently and efficiently. Always stay updated with market trends, prioritize security, and keep an eye on new technological developments that could further streamline the swapping process.

Posted in Cryptocurrency, Exchanges

How to choose the best way to invest in cryptocurrency

Written by allsafetoken Published

Many people are interested in how to make a profitable investment in cryptocurrency. Cryptocurrency is an opportunity to create a crypto wallet, invest in a variety of currency options, for this, you need to look at the well-known ratings, calculate which option will be the most optimal for you. Beginners need, first of all, to know how to buy usdt, some points about the choice of the currency itself, as well as the exchange.

Features of choosing an exchange for investment

Before deciding on this step, it is best to find out different points, calculate the risks, find out how best to create a crypto wallet, choose the timing of investment, the type of investment, the right exchange to work with, and choose the most suitable currency.

There are a number of platforms for trading, exchanging cryptocurrencies, but it is important to choose a reliable platform to avoid mistakes. Most often, they choose the platform that will offer you a number of factors. A crypto exchange can be centralized and decentralized, hybrid. Attention should be paid to the interface, tools, commissions. First of all, it is necessary to study the basic information about the exchange:

  • jurisdiction;
  • location of offices;
  • interface;
  • number of available trading pairs;
  • liquidity;
  • trading volume.

The exchange ChangeHero.io offers optimal conditions for any beginner, here, you can easily understand all the nuances, choose the appropriate currency, decide for yourself what exactly you will do. A wide selection of cryptocurrencies and other nuances are always offered. The main tools are intended for beginners, this is the basic market, special trading terminals. It can also be advanced tool for professionals. Separately presented are such as stacking, mining, landing. There are so many options that a beginner can get confused.

Factors affecting cryptocurrency

The second stage of a profitable investment is the choice of the currency itself, here, first of all, you need to know that there is such a parameter as risks. It is necessary to assess risks, limit investments, digital assets, percentages from the portfolio. It is best to spread your assets to a variety of currency options, so you can protect yourself from significant losses. At any time, the state can legalize the crypt, therefore, certain moments will appear, it will be necessary to act according to the legislation.

Currently, cryptocurrency is international and is not controlled by the state. If legalization occurs, problems will follow in the future. One of the main problems of cryptocurrency is security and access keys. More than 20% of cryptocurrency assets are in an unreachable place for the reason that the owners have lost their crypto wallets. Thus, they completely restricted access to their archives. This is an opportunity to lose the entire amount completely. Hacker attacks are also dangerous, you need to carefully choose the exchange where you will make transactions, so you will protect your currency from hackers. Also, the risks include:

  • malicious software;
  • termination of the exchange;
  • lack of a refund guarantee;
  • high volatility;
  • low level of liquidity.

All these factors play a negative role for novice investors and can scare them away. However, if you assess the risks correctly, you will be able to avoid further losses. One of the risks is also a change in quotations. If you plan to use cryptocurrency for payments, then you should think carefully and choose the appropriate option. They use cryptocurrency both as a means of payment and as an accumulation tool. If you decide on the purpose of using a currency, it will be easier for you to choose the type of currency itself.

Features of choosing a cryptocurrency

As for the choice of currency, you should rely on various ratings. There are a lot of ratings, some currencies have long occupied the first places, are already well-known currencies, such as Bitcoin, Ethereum, which have proven their importance, their rapid growth, and helped many investors to get significant income. You can also choose a completely new platform, that is, these are projects that have just appeared, have their own peculiarities and nuances.

It is important to choose the right currency in order not to suffer losses in the future, besides, it should be determined that some currencies are suitable for long-term experience, while some, on the contrary, are only for the short term. It is much more difficult to get income in the short term. It seems that you should explore all possible options yourself, but almost everyone advises choosing only the currency that suits your goals. It is necessary to consider such an option as the capitalization of the cryptocurrency, it is calculated according to the formula, that is, its price is multiplied by its quantity, the more, the greater the interest from investors. There are such well-known currencies as:

  • Bitcoin;
  • Ethereum;
  • Tether.

The purpose of cryptocurrencies also plays a huge role, the digital asset industry is constantly developing, it allows you to solve various tasks using the blockchain. It was Ethereum that first introduced smart contracts and became a special platform for other cryptocurrencies.

Cardano currency is one of the first coins of the ecosystem, Ripple has a very high transfer rate because mining was abandoned. The currency has reached a record throughput, there are many examples where the currency has occupied a leading position. You can always invest in technologies that will completely change the market. Further, such a factor as a connection with a real business is evaluated, some cryptocurrencies are associated with companies that are put into circulation, or they are exchange tokens that are created with special cryptocurrency exchanges to attract new customers.

Features of the selection of cryptocurrencies

The development team is also important. Most often, famous personalities, scientists who offer special options for the development of the currency are working on the creation of the currency. Many have an anonymous team, that is, no one knows which person is responsible for the promotion of a particular currency.

However, even if the developers are completely anonymous, work is constantly being done on projects, you can track its changes. It is absolutely necessary to study social networks, that is, each project has its own followers, is represented in social networks. The more subscribers there are, the more publications, the more people know about the coin, it is better advertised, therefore, it will have more turnover since most people will want to invest in such a currency. Identify several new currencies that are still not fully understood. Such currencies include Solana, Polkadot, avalanche, and other types of currencies.

If we consider new currencies that have already experienced ups and downs and at the same time have a good capitalization, then such currencies as:

  • Cardano;
  • Binance;
  • Chainlink.

As a result, you can decide which factor is the most important for you, based on it, choose the right currency for yourself. In any case, this is a great chance for you to get the most out of investing and enlist the support of developers in general. When choosing a currency, first of all, it is necessary to determine the purpose of investing, then find out what risks it carries, then view analytics, reviews, that is, make the investment as secure as possible for yourself. In any case, investments in cryptocurrency remain leaders for the reason that they are cheaper, you can find such cryptocurrencies that are inexpensive now but at the same time promise good profitability. This is not just an investment for storage, it is an investment in order to significantly increase your capital in the future.

Posted in Bitcoin, Cryptocurrency

Grayscale Bitcoin Trust Trading Down By 40%; Is This A Warning?

Written by allsafetoken Published

The negative premium for the Grayscale Bitcoin Trust Fund expanded to 42.7%, while the Ethereum Fund’s negative premium dropped to 40.12%.

The recent FTX exchange collapse has left many digital asset markets feeling the heat. Several exchanges and lending platforms have been affected by this turn of events, but now even the world’s largest cryptocurrency fund is feeling the brunt of it.

The data reflected that expanded Grayscale Bitcoin Trust Fund’s (GBTC) negative premium was at an alarmingly high of 42.7%. In addition, the Ethereum Fund’s negative premium dropped to a still too-high 40.12%. These results have been record lows for both trust funds according to the research conducted.

GBTC, which owns 3.5% of the world’s Bitcoin, has seen a drop in value as investors are seemingly hesitant to invest in cryptocurrency following the recent FTX crash. However, Grayscale stated that it and its subsidiary DCG were not affected by Genesis’ collapse.

Since Bitcoin hit its All-time high in November, trust investors have lost 83%. Additionally, within the last year alone, prices have dropped 65%.

At the time of this writing, Bitcoin is being traded at an average price of $16,748. The total market capitalization for BTC now stands at approximately $321.7 billion dollars.

Cryptocurrency investors have lost confidence following the implosion of FTX, with the global digital asset market cap dropping below $1 trillion.

On Wednesday, crypto lending platform Genesis suspended its services, worrying Grayscale investors. With more than $50 billion in loans originating from the company last year, its lending arm took a major hit from Three Arrows Capital’s collapse.

Until last month, Genesis had the authority to issue new shares for Grayscale securities. As a subsidiary of Digital Currency Group, it was responsible for issuing new shares for GBTC.

Posted in Cryptocurrency

The Private Keys to Your Crypto

Written by allsafetoken Published

Discover the critical distinction between private keys and public keys, and why “not your keys, not your coins” is essential.

Private keys are an essential part of the crypto network infrastructure because you need them to sign transaction requests.

In this guide, you will learn about public key cryptography and how private keys are used in crypto wallets.

Cryptography is the technique of secure communication in the presence of third parties. Public key cryptography (PKC) employs a pair of unique keys to encode and decode messages: the public key and private key.

A public key is, as the name suggests, open to the public and can be given to anyone. Conversely, a private key must be safeguarded so that the system remains secure.

PKC is a type of cryptography where a public key and private key are used. This allows for the user to encrypt information using their public key and share it publicly while also making sure that only the intended recipient can decrypt it through use of the corresponding private key.

Three computer scientists named Ron Rivest, Adi Shamir and Leonard Adleman publicly revealed the first asymmetric cryptography scheme in 1977. They called their system RSA after the initials of their last names. The system would generate two keys through a series of mathematical computations.

RSA keys are used to encode and decode messages, so that only the authorized recipient can read them.

Before the arrival of RSA cryptography, all cipher systems used symmetric key cryptography, which employs only one key to both encrypt and decrypt data. In this system, it was critical to keep this key secure. Sharing this key with all scheme participants had to happen through a safe channel before any data could be transferred. Although this was possible between two people, it became more complicated and difficult to manage as more people got involved in the scheme–a substantial security risk.

The entry of the RSA scheme provided a solution to this challenge.

RSA is based on the concept that it’s tough to factorize a large integer. A public key contains two numbers—one of which is the product of two vast prime numbers, and the corresponding private key also hails from those same two prime numbers.

Consequently, we can observe that the cypher scheme’s potency is reliant on the size or length of the keys. this is due to if a party manages to factorize the public key, then the private key is no longer secure. Though, if keys are established to be large numbers, it would be impractical from a mathematical standpoint to break them.

Bitcoin, while not using RSA specifically, functions similarly and therefore also has long keys for security purposes. The average length of a key in Bitcoin is 1,024 to 2,048 bits.

All cryptocurrency wallets have both public and private keys to ensure safety.

A private key authenticates asset ownership and encrypts the wallet, while a public key helps to identify the wallet and receive funds.

A crypto wallet will usually give the user a twelve-word seed phrase. These words are representative of an innumerable amount of public and private keys.

The twelve-word seed phrase is a representation of your private key, but does not serve as your actual private key. In the event that you lose access to your wallet, this phrase can be used to restore it.

A private key is what you need to access your crypto wallet. For example, when you first download Trust Wallet, it generates a private key for you. At that point, the app will ask you to write down and store your seed phrase somewhere safe. After doing so, you can access your crypto wallet

If you lose your smartphone that has Trust Wallet installed, for example, redownload the app and use your twelve-word seed phrase to restore your wallet. You will then have complete access to all of your funds and be able send/receive coins again.

Whoever has access to a wallet’s private keys controls the funds in thatwallet–that is where the phrase “not your keys, not your coins” comes from.

Posted in Cryptocurrency

Last week the crypto market’s drivers

Written by allsafetoken Published

Last week the crypto Market continued to hold on for dear life in the face of increasingly bearish macro factors.

For starters earnings for the third quarter are starting to come out and every company from Big Tech to Banks is getting battered by the increasingly weak economy.

The most significant announcement came from Microsoft which confirmed that it will be cutting its Workforce.

Note that Microsoft is just one of many heavyweights that have announced layoffs in recent weeks and what we’ve seen so far is likely just the beginning.

Trust me when I say there is no shortage of stuff coming up, that’s going to shake up the markets now what’s odd is that Weekly jobless claims in the United States somehow came in lower than expected despite all these layoffs.

This suggests that the labor market continues to be strong and this is paradoxically bad for financial markets, this is of course because of the Federal Reserve.

Ted’s mandate is to keep inflation under control and prevent unemployment from getting too high.

Given that inflation is out of control and unemployment is somehow low this means the FED can continue aggressively raising interest rates and as you’ll all know raising interest rates basically means that money gets sucked out of the economy to pay back all the debts that individuals and institutions took on when interest rates were low.

With another rate hike coming in just over a week’s time investors are concerned that the markets could get wrecked.

At the same time some investors are speculating that the FED could deliver a less aggressive rate hike during its next meeting, this is simply because of the upcoming midterm elections in the United States.

Some investors believe that the current administration wants assets to be rallying when the ballots are passed.

Unfortunately for the current administration it looks like there’s no stopping FED chairman Jerome Powell who is determined to defeat inflation from the demand side.

This is concerning because most of the inflation is arguably coming from the supply side factors, at this point in time until governments realize that they can’t fight physics and start magically producing oil and gas you can bet that inflation is going to continue to run hot in most countries.

This means that interest rates will continue to remain high possibly for much longer than investors are currently pricing in for what it’s worth it takes between one and two years to set up oil and gas operations depending on the location as such the current period of economic pain shouldn’t last too much longer than that.

The only problem is that many businesses will not survive and the markets will be extremely volatile until things improve.

If that wasn’t bad enough there’s also a whole bunch of black swans swimming around such as an escalation of the war in Ukraine and China potentially taking Taiwan.

Posted in Cryptocurrency

Circle’s USDC benefited from Terra’s collapse

Written by allsafetoken Published

Speaking of stable coins if there is one issuer that has benefited from Terra’s collapse, it’s Circle this is not only because the resulting regulations will prevent competition, but also because it has allowed USDC to fill the void left by UST.

This was the headline from CoinDesk which asked the question of quote – whether decentralized Finance can mature with decentralized money at its core regarding USDC’s native expansion to Cosmos.

I suspect the answer is no, but it ultimately depends on who you ask.

In addition to Cosmos USDC will be expanding natively to Ethereum’s arbitrum near protocol, optimism and polkadot by the end of the year.

To clarify USDC’s native expansion to Cosmos won’t be taking place until sometime early next year.

USDC expanding to its blockchain should come as no surprise, that’s because a former Circle executive recently became the CEO of the near Foundation.

This is more significant than you think, because near protocol is eerily similar to Solana, the biggest difference is that near protocol doesn’t experience constant outages.

This has apparently been an issue for Circle 2 particularly since USDC was being heavily leveraged within Solana’s ecosystem as such it’s quite possible that near protocol could replace Solana as USDC’s de facto home chain.

For now though Ethereum continues to hold the Lion’s Share of the USDC in circulation.

Posted in Cryptocurrency

Interested in making some money without putting in a lot of work? Check out crypto staking!

Written by allsafetoken Published

Staking is a method for generating passive income in the crypto world, similar to interest or dividends earned while retaining your underlying assets.

If you stake your existing cryptocurrency, you can earn more of that same currency as a reward. This happens when you vouch for the validity of transactions made on a blockchain network. Even though it may sound complex, regular users can do this from their digital wallets or by using services provided by exchanges. These exchanges take a percentage of what is earned but will handle all the difficult details for staking customers.

Staking in cryptocurrencies generally results in higher earnings than what you could earn in a savings account. Staking, though, comes with inherent risks. You’ll get rewards in crypto, a volatile investment asset. You may be required to lock up your crypto for a certain length of time at times. Furthermore, there’s the potential that you’ll lose some of the cryptocurrency you’ve staked as punishment if the system doesn’t operate properly.

Staking can also serve as a way to incrementally grow your cryptocurrency assets portfolio, using coins you don’t plan on selling anytime soon. Staking is also more energy efficient than mining, which Bitcoin and some other cryptocurrencies utilize.

Staking is an essential part of the technology behind certain cryptocurrencies. However, not every cryptocurrency network employs staking.

In the long run, proof-of-stake cryptocurrencies, as they’re known, are likely to support staking. Here are a few case studies:

Ethereum (which recently shifted from proof-of-work).

  • Cardano
  • Solana
  • Shiba Inu

Bitcoin, Litecoin and other proof-of-work cryptocurrencies are energy hogs. They require large amounts of electricity and expensive computers to run. They don’t typically allow for staking. The following are examples of proof-of-work cryptos:

  • Bitcoin
  • Litecoin

To comprehend staking, it’s helpful to have a basic understanding of what blockchain networks accomplish. Here are some key facts you should know.

Rather than one centralized party — like a bank — validating new activity and making sure it tallies with a historic record kept on computers across the network, blockchains are “decentralized.” This means that users put together recent blocks of transactions before submitting them to be included in an unchangeable historical record. If theirblocks are accepted, they receive a transaction fee paid out in cryptocurrency.

Staking is a safeguard against fraud and mistakes in this procedure. Users proposing a new block — or voting to accept a proposed block — risk some of their own money, which encourages them to follow the rules.

Inaccurate information in a proposed block can result in loss of part of the user’s stake, which is known as slashing. The size of the transaction fee rewards generally corresponds to the amount at risk.

Posted in Cryptocurrency

Top Cryptocurrency Myths

Written by allsafetoken Published

Since their inception in 2009, cryptocurrencies have experienced tremendous growth in popularity. They are somewhat unique and obscure; as a result, misconceptions and rumors abound about them.

In no particular order, here are several of the most popular cryptocurrency misconceptions debunked with an analysis of facts to help you make an informed decision.

#1 There is a General Misconception that Digital Currencies Are Only Used for Illicit Activity

A widespread and long-standing myth about digital currencies is that they are only used for unlawful activities. While there have been individuals with bad intentions, as well as criminal groups, who employed digital currencies in the past, similar statements could be made about any type of money used at any point in history.

According to Chainalysis, a firm that uses blockchain data analysis to aid investigators in cryptocurrency crimes, the proportion of cryptocurrency transactions relating to illegal activity dropped in 2021 (the most recent study) to 0.15% of all transactions. The majority of the remaining 18 percent were fraudulent cryptocurrencies.

It’s crucial to know that governments and other organizations are targeting cryptocurrencies in criminal activities. Many nations have implemented anti-money laundering and countering the financing of terrorism laws, as well as agencies and teams dedicated to combating cryptocurrency usage in illicit activities.

The National Cryptocurrency Enforcement Team (NCET), for example, investigates and prosecutes criminal cryptocurrency uses in the U.S..

 

#2 Cryptocurrencies don’t have value

The concept of value is subjective—something one person might see as worthless could be seen as a treasure by someone else. For instance, when Bitcoin was first introduced in 2009, it was only worth thousandths of a cent. However, its popularity grew over time until it reached $69,000 per Bitcoin in 2021. This example shows that how an asset is perceived by society plays a big role in determining its value.

ETH, or Ethereum, is a blockchain technology that serves as the foundation for non-fungible tokens and other digital asset ownership applications. Even though it doesn’t have the same dollar value Bitcoin does, ETH is much more valuable to companies developing financial products that use Ethereum smart contracts.

Investors and businesses have started investing in bitcoin for financial, investment, venture capital, and other purposes. Galaxy Digital Holdings is a financial services and investment firm with over $2 billion in digital assets under management as of July 2022.

 

#3 Cryptocurrencies Aren’t as Secure as You Might Think

Cryptocurrency works by utilizing a blockchain. A blockchain is a recorded database that uses encryption methods to ensure its security. As new transactions are inputted into the blocks, previous transaction information is carried over and also encrypted.

Each new block in the chain builds on the one before it, and a network of automated verifiers must confirm that data contained in the transactions is correct. It’s nearly impossible to modify information on the blockchain to steal cryptocurrency because of encryption, connected blocks, and consensus techniques.

The security of Bitcoin, in particular, is questioned. There are several issues that threaten the stability and integrity of Bitcoin and its community. The first is how individuals use cryptocurrency such as wallets and centralized exchanges to organize transactions. It’s all but impossible to move bitcoin from one user to another without worry, but the platforms and programs used to store and access it may be hacked or tampered with.

There are a few highly secure techniques for keeping your cryptocurrency safe. You may, for example, keep your crypto asset keys off the exchanges and in cold storage. Only the amount you wish to use should be transferred to your hot wallet through a secure, wired connection on a non-mobile device like a personal computer when you want to utilize it.

 

#4 Cryptocurrencies Are Not Good for the Environment

There is a lot to be concerned about when it comes to the environmental effects of digital currencies. Some cryptocurrencies employ a mechanism that relies on computational power and substantial amounts of energy to authenticate and validate transactions. As popularity has risen, Bitcoin has grown more popular and valuable; as a result, huge mining operations have emerged to capture the bitcoin market.

All of these cryptocurrency mining farms use a lot of energy to run the equipment, which totals an network energy consumption rate similar to that of some small countries. The environmental effect this has greatly depends on where the farm is getting its power and how much coal or other nonrenewable resources are being used because those have a larger negative impact on the atmosphere.

The environmental impact of mining depends on how the operations are powered. If most of the electricity comes from fossil-fuel-powered grids, then there is carbon pollution. If mostly sustainable energy powers the mining, then the environmental impact is lower.

The reactivation of old, fossil fuel-powered plants to support bitcoin mining raises concerns for environmentalists and countries working to reduce their carbon footprints.

#5 Cryptocurrencies Are a Scam

Cryptocurrencies have gained substantial traction in the retail and commercial world. People are using them for personal transactions, and governments are striving to regulate them. The majority of cryptocurrencies do not contain any programming, code, or malevolent artificial intent that seeks to steal money from you.

However, there are fraudsters who attempt to deceive you out of your cryptocurrency or cash. For example, there have been several unregistered initial coin offerings—unregulated fundraising for new cryptocurrency projects—that turned out to be hoaxes. Someone may try to persuade you to accept unverified transactions in other bitcoin scams, or pretend to be government officials and ask you to pay your bills in cryptocurrency.

While you can never be guaranteed that you won’t get scammed, being knowledgable and aware of the signs will help to decrease your chance s of it happening.

 

#6 Cryptocurrencies Are Real Money, Not Securities

The International Monetary Fund considers money to be a store of value, unit of account, and medium of exchange that is widely accepted and may be translated into prices. The Financial Industry Regulatory Authority (FINRA) defines cryptocurrency as a digital representation of a stored value secured by cryptography.

The Internal Revenue Service views cryptocurrency as “convertible” currency—one that has an equal value in “real” currency. Transactions in cryptocurrency are taxed, and capital gains or losses from holding them must be reported on your tax filings.

Lacking guidance from the Federal Accounting Standards Board and Generally Accepting Accounting Principles, accountants have been instructed to account for cryptocurrencies as intangible assets with an indefinite life and to measure any crypto assets at cost rather than value.

Vendors are increasingly accepting Bitcoin, Ether (ETH), and other cryptocurrencies in exchange for their goods—you may also trade your crypto for real money at numerous cryptocurrency exchanges.

 

#7 Cryptocurrencies will eventually replace cash

Cryptocurrencies have only been around for a short while, in comparison to fiat currencies which date back centuries. China is rumored to be the first developer of fiat currency, issuing it around 1,000 CE. However, many other countries have since adopted this type of currency as well.

Although it would be a difficult feat, cryptocurrency could potentially replace fiat currency if enough people adopted it. If value and purchasing power can be established, there is a chance that it may happen on a large scale. Perhaps if merchants began posting prices in cryptocurrency and more people started using it regularly to purchase items, this could begin a snowball effect.

However, governments and officials will not willingly give up fiat money since the existing system of controls for collecting taxes and funding government-sponsored programs and services. Social programs that people rely on would cease to exist if taxes are not collected, and other government financing may run out.

In addition, because cryptocurrency is decentralized, there would be no way to control inflation through standard monetary policy tools. The lack of ability to use traditional central bank policies could create unknown effects on a country’s economy. Without built-in ways to affect inflation, employment or growth found in blockchain technology and cryptocurrency, new methods for influencing the economy would need to be devised.

#8 Cryptocurrencies are a temporary trend

Computers, the internet, and email have come a long way since they were first introduced. They are now essential to many people’s personal and work lives. It is tough to predict where cryptocurrencies will be in the next few decades; however, the technology they introduced and the products they inspired will likely continue to be developed and refined.

Decentralized finance systems are beginning to take shape, attracting the attention of financial institutions and consumers. Some governments are looking at ways to bring legally-validated cryptocurrencies linked to a more stable asset into circulation, while others are investing heavily in Bitcoin and altcoins.

Blockchain technology is being used by these companies to connect the real and virtual realms, with non-fungible tokens serving as a building block for this fusion. Any asset or value may be assigned to non-fungible tokens, and they may be created for anything imaginable; the virtual and real realms are on a collision course, and cryptocurrency is likely to play a role.

Posted in Cryptocurrency

Cardano’s ADA: Vassal Hard Fork is coming

Written by allsafetoken Published

The time again the possibility that there could be a problem with the merge is why I hold a handful of so-called Ethereum killers as part of my portfolio.

this includes Cardano’s ADA which looks to be better positioned than ever to play the role as an ETH hedge.

this is because Cardano’s developers have confirmed a date for the highly anticipated Vassal Hard Fork.

as per a Twitter thread by input output the Vassal Hard Fork is now scheduled for the 22nd of September which will be roughly one week after Ethereum’s own massive upgrade.

for those unfamiliar the Vassal Hard Fork is expected to significantly improve Cardano’s scalability.

specifically it will increase Cardano’s block size so that more transactions can fit in each block and make it possible for developers to analyze transaction outputs without having to spend these outputs.

Cardano’s novel transaction model though secure created concurrency challenges for smart contracts and decentralized applications which resulted in sub-optimal user experiences.

put simply it made Cardano daps slow the ability for developers to effectively simulate transactions on Cardano before they occur should therefore make it possible for their dapps to provide the same sort of user experience we’ve become accustomed to on other smart contract cryptocurrencies.

this is why ADA has been rallying so hard over the last few days and why it could continue to rally even after the Vassal Hard Fork is complete and ADA could rally even harder if there are any significant issues on Ethereum as a result of the merge.

now the Caveat is that it’s not entirely clear just how much Vassal will affect the user experience on Cardana’s growing number of daps and I say this because Cardano developers noted in a June update that the effect of the Vassal Hard Fork on Cardano will quote not be immediate.

more recently Cardano founder Charles Hoskinson seemed to tacitly reiterate that the Vessel Hard Fork will not result in an increased scalability that can be felt by the end user as he focused on the security and quality of transactions on Cardano rather than their speed in the context of Vassal.

what this means is that Vassal could very well end up being another Zelda news event like the Alonzo Hard Fork last September when ADA wales sold when they realized that Cardano’s smart contract functionality had failed to meet their high expectations namely the instant deployment of dApps.

to be clear I am not saying that this will happen again but even if it does addis crash will not be nearly as catastrophic.

as you can hopefully see 30 cents seems to be a very strong zone of price support for ADA and plummeting there from these levels would result in a loss of roughly 50 percent.

conversely ADA could rally as high as 80 cents in the short term and the research that I did for our upcoming Cardano update over the weekend suggests to me that this outcome is more likely.

.

 

Please enter CoinGecko Free Api Key to get this plugin works.