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The Rise of the Meme Coins - SHIB vs DOGE
Shane Addinall posted a post in BlogMany compare investment trading with gambling, and for good reason. The stock markets can be treacherous, even on a good day, and this is truer with crypto investments. Since the first digital coin launched in 2009, decentralised currencies have exploded, and investors now have over 10,000 options in this market. So many jumped on the hyped-up bandwagon of Bitcoin that tech wizards Bill Markus and Jackson Palmer set out to create a spoof coin to poke fun at the wildly speculative investment. Much to their surprise, Dogecoin experienced massive success in its first three weeks, spawning countless other meme coins. Since Dogecoin's arrival in 2013, many altcoins joined the digital currency race, and many failed. On the other hand, Shiba Inu seems promising, and as a self-declared Doge-killer, we must inspect how the top two meme coins measure up. Meme Coins and Investment Those familiar with Decentralised Finance (DeFi) may know meme coins and understand what it is about, but to some, the concept remains foreign. If you are wondering, the name explains it all. These altcoins have images of popular memes as their logo. The creators of Dogecoin claimed the most meme-worthy dog as its symbol, hence the name. Doge memes include a quirky photo of the Japanese dog breed, Shiba Inu, with a collection of rainbow-coloured sayings like "such wow", "very concern", and more comical dog language. Following the success of Dogecoin, the crypto market now has a horde of dog-themed coins. Like other altcoins, meme coins bring scalable options to the cryptocurrency market, a feature lacking in Bitcoin. Meme coins also rely heavily on community activity and therefore need viral results to thrive. This makes it an extremely volatile investment space, and experts on either side of the fence agree investors should only buy crypto stock with money they can afford to lose. Dogecoin vs Shiba Inu As the most talked-about investment opportunities in the meme coin category are Shiba Inu and Dogecoin, we weigh the two against each other. Below, we explore key similarities and differences between the two dog meme coins and uncover the core traits of each. Then we compare them in the investment space to discover the best bet for those who want to gamble on meme coins. Similarities and Differences The most basic feature these two coins share is the animal on their logo. Both Dogecoin and Shiba Inu flaunt an image of the adorable breed behind the viral memes from the 2010s. The only difference is that the original meme coin has a cartoon version of the dog, and its rival has a modern pop-culture image of a Shiba Inu. With recognising the coins in the stock market, the logos are irrelevant. These coins trade as DOGE and SHIB, respectively. Another feature these coins share is the intention of being a peer-to-peer payment network. This means that, unlike Bitcoin, these coins have no central authority, corporate structure, or executives making crucial decisions that affect the entire network. Instead, these coins are entirely community-led. This may be where some want to take a step back and question the reliability of investments, but like all other reputable coins, the blockchain ledger is available to the public and bears the same immutable qualities. The peer-to-peer network impacts market value and causes major fluctuations, making meme coins a bad choice for novice investors. Dogecoin and Shiba Inu both fork from larger blockchain models. Although the former came into being as a satirical response to Bitcoin investments, DOGE ironically enough, forks from Litecoin which originally forked from Bitcoin. Shiba Inu runs on a different chain, namely Ethereum, which many see as an advantage. This technicality means the coins have reliable infrastructure, and both networks come with their pros and cons. ✓ Dogecoin Originally launched in 2013, Doge enjoyed huge success thanks to virality. As mentioned, the creators of Doge were making fun of the speculative nature of cryptocurrency investments, but thanks to the community in the Doge network, it reached exciting heights in the initial phase. Seems like the tech world has an appetite for humour, as the comedic meme coin reached 300% growth in its first couple of weeks of trading. Experts believe this happened because it was a very appealing way to enter the crypto market without breaking the bank. The consumer-focused approach of the new breed of altcoins attracted new investors, and soon, Doge was a genuine alternative to existing coins, like Bitcoin. Because Doge uses a similar Proof of Work (PoW) consensus mechanism as Litecoin called Scrypt (pronounced es-crypt), the currency is less energy-intensive and quicker than Bitcoin. Dogecoin has several celebrities backing it, and Elon Musk called it 'the peoples crypto' on Twitter, triggering enormous growth for Doge and other meme coins. Thanks to the low price of the coin, in stark contrast to Bitcoin, anyone can invest in Doge. Industry experts warn potential investors should be cautious when doing so. Labelled as the 'fun and friendly internet currency', Doge experiences sporadic rate changes on the stock market. At the time of writing, 1 Doge was worth $0.063. This open-source, peer-to-peer digital currency offers users a couple of advantages, like the speed of transactions. Thanks to the Scrypt algorithm, Doge creates blocks much faster than other value storage cryptocurrencies, and it is a lot more scalable than Bitcoin. The estimated time for the creation of a block is 1 minute, while Bitcoin takes 10 minutes. ✓ Shiba Inu Compared to Doge, Shib is an infant in the trading market. Created to mimic the surprising success of the original meme coin, Shiba Inu arrived on the scene in 2020. There is no reason to speculate on the inspiration behind this meme coin as the coin's creator labelled it as 'the Dogecoin killer'. While both Doge and Shib rely on community engagement and major hype from it, Shib presents its users with interesting options. Shiba Inu operates on the Ethereum blockchain, giving it an edge that Doge lacks. Apart from the community platform known as Shiba Swap, where members can trade their coins for others, Shiba users can choose from three cryptos with different applications. SHIB is the basic currency used as a medium of exchange. LEASH is a limited token; only 107,647 are available, which are used as staking rewards for those validating the currency. Lastly, investors can purchase some of the 250 million BONE coins available, which allow its owners to vote on governance proposals. Shib experienced massive growth in 2021, much like Doge, but we must point out that 1 coin is worth $0.00001017 at the time of writing. Regardless, for an investor, percentages matter and considering the 3500% gain within the first couple of days of trading, Shib is an attractive choice for traders. The low price makes it an easy option for those who want to experiment in the crypto space without losing too much if they're out of luck. Unlike Doge, Shib has no celebrity endorsements as yet. If you believe that all publicity is good publicity, we could argue that the coin burning indaba, where Ethereum's Vitalik Buterin irrevocably destroyed approximately 40% of all issued Shib and shunned the coin, was a PR stunt. It is safe to say that Shib enjoys success thanks to Doge, and only time will tell which becomes the victor. Should You Gamble on Meme Coins? As mentioned, high-risk investment trades are a gamble, and the risk is so much more with cryptocurrency markets. The truth about meme coins is that you need to understand what can topple a good trading day and stay on top of community interactions. Like with gambling, you should only use the money on crypto and meme coin investments if you can afford to lose that money. Once you understand that, there are a few things to consider before deciding on where to lay your stake. How do Doge and Shiba compare on the stock market, and which is the best choice for investors right now? What does the future hold for these dog coins? DOGE vs SHIB? Basic economics comes down to supply and demand. The relationship between these two variables determines the value of an asset, and most altcoins come with a capped supply. Doge is an exception to this rule, as the creators stuck to an authentic peer-to-peer payment system by utilising an inflationary mechanism. This helps prevent investors from holding onto massive chunks of the token and keeps costs low in the long run. Doge has a supply rate of approximately 5 billion coins a year. With a 9-year history on the market, one would think Doge has more solid backing from investors, but despite impressive gains here and there, experts remind us that meme coins have no real precedent for how their value can change. Bursts of huge gains seem to be short-lived with Doge, and it is an extremely volatile space to play in. Shib gradually clawed its way up the market ladder in the two years of its existence. It launched at a value lower than $0.00000001 because the creators needed to leave room for significant growth. Following on the coattails of Doge's remarkable gains in 2021, Shib increased in value to $0.0000036, showing a 3500% gain on investors' books. The Doge-killer reached an all-time high in October 2021 of $0.0000826, but as we pointed out, it has dropped significantly since then. Choices, Choices Considering the hype around these altcoins and how it impacts the coin's values, it is best to approach with caution when investing in meme coins. Both show promise, as Doge has been around for nearly a decade, and Shiba offers innovative options for its community. However, investors need to keep their fingers on the pulse with these communities to beat the curves. Remember that meme coins are high-risk investments, and neither Doge nor Shiba bears a 'safe investment' label. Considering the stability and track record of Doge, it may be a less risky option for investors, but Shiba has a few tricks up its sleeve that makes it a potentially good choice for growth.
The Future of Crypto Gambling and the Blockchain
Shane Addinall posted a post in BlogOnline gambling has been around for close to three decades now and has evolved and grown immensely over that time. Enhancements in technology have been one of the biggest motivating factors for these changes, coupled together with the demands from the player-base for increased innovation in keeping with these modern conveniences. The perfect example of this trend playing out can be found in the call for a mobile gambling market. Did you know? The first mobile gambling venture in the UK (the biggest iGaming market in Europe) was a mobile lottery, which launched in 2003. One of the most significant evolutions happening at the moment is the increased growth and influence of the cryptocurrency market. The popularity of crypto casinos is on the rise, thanks to the increasing technology in the blockchain world – a world dominated by a millennial generation that is comfortable adapting to fresh technology and ideas. In fact, they demand it! Because the future is in the hands of the current generation, tomorrow’s gambling market must evolve to meet their needs and desires, or it will die out. Current data suggests that sub-40-year-olds are not as drawn to mainstream casino games as older generations are and are more prone to enjoy the latest social gaming innovations from the crypto space. What is the Winning Recipe for the Future? To understand the future for crypto and general online casino gaming, we need to understand the subtle changes that are happening in the market right now. These are indicating factors of where the gambling market is going. Currently, all the communicating factors point towards the position that strong ‘’digital community’’ values are at the heart of this current and up-and-coming generation of players. Interaction online is becoming a major trend across various markets. Just look at a few of the obvious examples around us. Social Media Social media platforms like Facebook, Instagram, and Twitter are bigger than ever before and newcomer, TikTok, is making big waves. Billions of people use these applications daily to reach out to their friends and the greater world. Quick Fact: Facebook is the largest social media platform in the world. It boasts a massive 2.8 billion active users in the first quarter of 2021. These platforms provide the perfect setting for a digital communal environment. People can find their voice and link themselves to special interest groups and communicate with friends across the span of the globe in a matter of seconds. The social media craze is a real indicator that the current generation is a fan of digital community qualities. The Latest Video Gaming Crazes While single-player games were a lot of fun for those over 35 years of age when they were growing up, this is no longer the case. Today the most popular games in the world are all multi-player options. Games such as Roblox, Fortnite, Call of Duty: Warzone, and Apex Legends draw millions of players around the world daily. All the pre-mentioned gaming brands have one thing in common – they are multi-player based. In fact, Fortnite, Warzone, and Apex Legends are all Battle Royale type games, meaning that players can team up with others to compete against other player-based teams. Technology like Discord and other team chat software applications even allow the gamers to talk to each other while playing. Why are these multi-player titles the most popular games right now? Because they all offer a social environment where people can interact with others. It seems like common sense that players exposed to such gaming environments would seek similar or better-quality gaming interactions when they graduate to the gambling sphere. ✓ The E-sports Boom One of the fastest-growing digital industries at the moment is e-gaming. This immerging market not only harnesses the qualities of one-on-one competition but affords fans the option to bet on the outcomes of the games. While e-sport is in its infancy, educated estimates predict that this fresh and fast-paced gaming market should reach a capitalisation of around $13 billion by 2025. Once again, the driving influence for this popular digital sport form is the fact that players compete against each other for a shot at the prize. In many games (like FIFA), each side can comprise of multiple gamers. It is no longer as thrilling to compete against a machine as it is to take on your peers head-to-head. It seems that even in the world of machines and high-end tech that basic human qualities will endure, albeit that the social trends are a little different from the norms of generations gone by. ✓ Live Casino and Poker Trends Closer to home, two of the quickest growing game options at online casinos are online poker rooms and live dealer games. Evolution Gaming has taken the world by storm and is a heavyweight in international gambling circles. They just recently acquired gaming giant, NetEnt, for a massive sum. The recipe behind the company’s success has been its ability to join real people together in a casino environment for a common cause. The social interaction involved makes live table games and gameshow titles very popular. Virtual table game libraries are shrinking on casino sites while live game portfolios are growing. Did you know? Trends amongst younger gamblers show that live casino games such as Live Monopoly, and other such gameshow titles are firm favourites in the live dealer marketplace. Online poker similarly offers a social aspect to the game. While the dealers are not visible via stream, multiple players can take seats at the virtual tables and interact via a live chat tool. Online poker has exploded thanks to fabulous social poker sites like PokerStars. ✓ The Outcome The simple fact is that the current generation loves technology and can spend hours lost in the digital realms. However, they remain human and therefore crave interaction as social beings. A platform that can combine this form of entertainment with the necessary interaction qualities is onto the winning solution for the future. Up until now, the crypto casino world has done a sterling job in identifying this need and working towards placating its punters. Why Does Crypto = Community? There are few good reasons why cryptocurrency and crypto casinos are on the cutting edge of the social gambling trend and why they are community-friendly. These include: Multi-Player Games: There are a number of casino games coming from the decentralised market that focus on multi-player playability. They are extremely popular. As a relatively new tech in casino realms, blockchain-based casinos are usually frequented by younger players. Power to the People: Decentralised blockchain technology removes the need for a trusted middleman. This ideology directly empowers the people and encourages person-to-person interaction and trade. It implements a return to a more basic and personal way of life. Us against the world: The crypto world is very misunderstood and often shunned by mainstream finance, much like the current millennial generation is misunderstood by the ‘boomers’ who have gone before it. Both the platform and the people have an ‘’us versus the world’’ outlook on life. A common cause is usually a great unifier and brings communities closer together. One thing we can learn from crypto is that the next generation is eager for change. A change that sees a move away from isolated gaming experiences and embraces a more social and inclusive environment. What We Hope to See Soon The crypto realms are already on the right path and are quite likely to lead the way ahead. This is what we hope to see happening soon. ✓ More Innovative Multi-Player Games Now that we know what the industry needs to attract the next generation, we hope to see more and more mainstream and blockchain-based game providers introduce such games into the marketplace. Spearhead Gaming’s debut arcade/gambling game, Astroboomers: To the Moon, is a classic example of the type of entertainment we need to attract the up-and-coming player base. We also hope to see advanced mechanisms for players to share their accolades and wins within groups and special social media platforms. This alone provides great incentives for more competitive player types. ✓ Increased Usability at Crypto Casinos The practical issues involving high costs for microtransactions need solving to bring the crypto casino market to its full potential. Quick Fact: Ethereum launched a second blockchain platform called ‘’Ethereum 2.0’’ to try and solve the high transaction fee dilemma facing the usability of Ether for smaller transactions. Right now, decentralised blockchains cater better to big funds transfers than to multiple small ones. Blockchains, like Ethereum, are leading the way towards this sort of usability. ✓ Increased Education on Crypto Tech ‘An informed people are a happy people,’ according to a wise old adage. More education about crypto-realms and the qualities of the blockchain would go a long way towards the evolution and enhancement of the current online industry and influence current player bases to make the change. This should include a change of ideology to follow current social trends and an increased willingness from mainstream operators to adopt cryptocurrency as a form of tender on their sites. Round-Up One thing is for certain, the online casino industry has proven itself resilient over the years. Its ability to change and adapt is demonstrated in its year-on-year revenue growth. Its versatility is sure to continue as leading brands place big money into monitoring current trends and ensuring they stay on the cutting edge of innovation. Journey with us, at GamblersPick, as we keep you up to date with all the latest trends and introduce you to all the newest innovations and technologies as they drop.
Exploring Crypto Sentiment in 2021 [Survey]
GamblersPick posted a post in BlogSince its launch in 2009, cryptocurrency has taken the world by storm. In essence, it can be described as digital money. Many people invest in it, hoping the value of whatever crypto they have goes up. For example, at the start of 2013, Bitcoin was trading at around $13.50 per coin and peaked at just under $24,000 per coin in December of 2020. To understand the full scope of the cryptocurrency global landscape, we surveyed over 1,000 people regarding their investment tendencies and feelings toward the digital dollar. What does the future hold for Bitcoin and the many other cryptocurrencies circulating around the net? With their rapid rise in popularity and worth, they may be here for the long haul and might even eventually render the physical money we know and love obsolete. Keep reading to discover who's investing in what and why. Cryptocurrency at a Glance From the surveyed population, 76% had invested in cryptocurrency entering 2021. Millennials were the most keen on it – 80.1% of them fell into this age category. Among respondents, 64% were men, and 36% were women. By a large margin, the most owned cryptocurrency was Bitcoin (51.4%). The next highest was Bitcoin cash at 10.4%, and the rest were all well under that. Investors were five times more likely to own Bitcoin versus other cryptocurrencies – there are a handful of factors that contribute to its popularity. Bitcoin is worth a lot (over $35,000 USD apiece at the time of writing this), has been around longer than other cryptocurrencies and major companies have started to accept it as a legitimate payment option. Crypto influencers offer advice, news, and predictions for the crypto world – almost 60% of cryptocurrency owners took influencer knowledge into account when investing. Vitalik Buterin, a Canadian-Russian programmer, is one of the most famous figures in the crypto world. He co-founded Bitcoin Magazine in 2012 and Ethereum in 2015, which has become the second-largest cryptocurrency worldwide. Another influencer, Erik Voorhees, is an American entrepreneur who has been at the forefront of numerous crypto-related ventures. He launched a bitcoin gambling website in 2012 called SatoshiDICE and founded Coinapult in 2013 which allowed users to send bitcoins via SMS. In 2015, he turned his attention toward his new venture, ShapeShift, a currency exchange and management platform that supported many different cryptocurrencies. Of the last 12 years, 2018 saw the highest level of first-time cryptocurrency investment, with 21.4% of respondents entering the market at the time. Overall, 46% of respondents started to invest in 2018 and beyond. A tremendous increase in Bitcoin price over the last couple years could explain the rise in interest and subsequent investments. The Crypto Experience When further analyzing respondent's feelings toward cryptocurrency investment, more can be learned about their views, opinions, and experiences with it. Firstly, 53% of current cryptocurrency owners worried about criminal activity. According to a Crypto Crime Report conducted by Chainanalysis, the value of Bitcoin that had been sent to and from various markets on the dark web totalled over $600 million. To that end, 65% of respondents agreed that cryptocurrency should be regulated and monitored by the government in an attempt to crack down against the rampant illegal activity in the crypto underworld. Forty-one percent of investors claimed they had fallen for a scam or experienced an attempted scam. There are a lot of tricks scammers can use to con people out of their money. It is usually done by email or telephone – a common strategy used is to offer participation in online referral strategy schemes or investment in a "surefire" business opportunity. Unfortunately, some people send their hard-earned money to the person on the other end of the line. They may promise to double your investment, but the money is almost always never seen again. Seventeen percent of all respondents and a quarter of baby boomers felt cryptocurrency as a whole is just a scam. Seeing as the concept and usage of cryptocurrency is fairly new, the hostility and uncertainty toward its long-term legitimacy isn't entirely surprising. More on Investments Respondent's average initial investment into cryptocurrencies was $2,235. In all, the average investment totaled $9,305. Seventy-seven percent of investors had set up automatic investment payments to continually increase their crypto accounts. Not every investment led to financial success, though. Over 56% of baby boomer respondents claimed to have lost money to the crypto market, followed by 49.2% of Gen Xers and 44.6% of millennials. Overall, 47% said they had suffered losses on their invested money, the average being $2,763. Fifty-eight percent decided to pull their previously invested money, averaging $3,305 in withdrawals. Well over half of respondents attributed their use of cryptocurrencies to investment purposes. Investment can be an attractive option, seeing as Bitcoin, for example, is a scarce asset, many believe its value can continue to rise as fiat currencies (e.g., the U.S. dollar) depreciate. Only 8.3% of respondents used it for direct spending – there is an increasing number of companies that have begun to accept crypto payments, and as more allow it, direct spending will likely increase as well. Just under 15% of respondents claimed to have invested in cryptocurrency in the hopes of churning out large profits. The majority (37%) had invested purely out of curiosity. It is still too early to tell how cryptocurrencies will fare in the future – it seems as if many people are just happy to be along for the ride and see how their investments do. It also provides investors an opportunity to learn more about the crypto world in the event a global movement toward digital monetary assets takes place. The Future Is Crypto Twenty-one percent of cryptocurrency skeptics said they plan on investing in the new year. On average, those that have already invested plan on injecting $7,145 into their crypto accounts. Newcomers planned on investing considerably less, at an average of $965. Unsurprisingly, 31.3% of respondents are looking to invest in Bitcoin over other types of cryptocurrency. Also, most of them (65.6%) felt hopeful about the future of cryptocurrency – a positive mindset could be the first step toward (financial) success. As a whole, 45% of respondents felt a $100,000 mark is within reach for Bitcoin in 2021. Just over 54% of cryptocurrency owners believed as much, as did 16% of those without any crypto to their name. Seventy-seven percent of cryptocurrency owners believed that it will become just as popular as government-issued currencies, whereas 40.2% of nonowners agreed. On average, 68% of respondents believed the two currencies will eventually become equally as popular. With the increase in interest in cryptocurrencies and subsequent investments, as well as Bitcoin being the best performing asset this past decade, a level playing field between crypto and government currencies could be here sooner than we think. Crypto Quick Stats Top 5 Crypto-Friendly States: Colorado Ohio Texas California Wyoming Top 10 Richest Crypto Investors: ‘Nakamoto' Chris Larsen Joseph Lubin Changpeng Zhao Cameron & Tyler Winklevoss Matthew Roszak Brock Pierce Brian Armstrong Anthony Di Iorio Xu Mingxing Top 9 Countries With the Highest Increase in Users Between Ages of 18 and 24: Nigeria Australia Spain Canada Mexico U.K. Colombia India Pakistan Top 9 Countries With the Highest Increase in Female Users: Greece Romania Argentina Portugal Indonesia Ukraine Czechia Colombia Venezuela The Digital Gold Rush The rise of cryptocurrency is a fascinating one, and there is much controversy that surrounds the topic. Twitter CEO Jack Dorsey famously tweeted in 2018 that he believed the internet and the world as a whole will operate on one single currency, being Bitcoin. Although there has been consistent elevated interest displayed by the public in their investment efforts, many are skeptical about the safety of a digital currency. An average person may fear scammers and hackers, and governments are worried that it might destabilize their national currencies and hurt their economies. The influence that cryptocurrency will have in the future is uncertain, as there are both positive and negative aspects that come with its total adoption. For now, it seems that people are happy investing casually and learning what it's all about. What we do know, though, is that the landscape may very well drastically change in the next ten years, maybe just as quickly as it has since Bitcoin's inception. Methodology and Limitations We surveyed 1,015 people about their views on cryptocurrency. Respondents were 42.1% men, and 57.6% women. One respondent was nonbinary, and two respondents chose not to disclose their gender. The average age of respondents was 38.3 with a standard deviation of 11.8 years. Our survey included respondents currently invested in cryptocurrencies and those who are not. 244 respondents were currently invested in cryptocurrencies and 771 respondents were not. Questions on which cryptocurrency respondents own, their reasons for investing, what they use it for, which crypto influencers they actively follow, and what they associate cryptocurrency with were asked as check-all-that-apply questions. Therefore, percentages won't add to 100. The data we are presenting rely on self-report. There are many issues with self-reported data. These issues include, but are not limited to, the following: selective memory, telescoping, attribution, and exaggeration. Fair Use Statement Think your friends and family might want to brush up on their cryptocurrency knowledge? Feel free to share these findings – we only ask that you do so for noncommercial use and that you provide a link back to this original page so the study's contributors can earn credit for their work.
Top 10 Cryptocurrencies You Need to Know about for 2021
GamblersPick posted a post in BlogAs of September 2020, there are over 5,000 cryptocurrencies available in the market. There is no exact number as it's an open-source — anyone can create their own virtual money using a code. Below we have listed 10 of the top currencies in the market today. Find out the main differences between them. 1. Bitcoin Bitcoin was the first cryptocurrency in the world. As virtual money, you can use it for buying anything so long as the shop accepts Bitcoin cash. It can also be exchanged for other cryptocurrencies. Each bitcoin is a computer file stored in a virtual wallet either on your computer or a smartphone. All transactions are on a public ledger called the blockchain. Bitcoin was invented in 2008 and started the year after and was released in an open-source software. By far, it's still the largest cryptocurrency in the world. 2. Ethereum On July 30, 2015, Vitalik Buterin launched Ethereum — a software platform that enables Decentralized Applications and Smart Contracts to run without control or interference by other parties. Its crypto token is Ether and it's the second-largest cryptocurrency after Bitcoin. Ethereum started when Buterin suggested that Bitcoin needed a scripting language. A pre-sale for crypto coin ether was then launched and it can be used to decentralize, secure and trade just about anything. Today, Ethereum was split into Ethereum Classic and Ethereum. 3. Ripple Also referred to as Ripple protocol or Ripple Transaction Protocol, cryptocurrency Ripple is a gross settlement system in real-time. It started in 2004 when Ryan Fugger thought of a monetary system that can effectively allow people to make their own money. RipplePay.com was then launched the following year to provide a more secured payment via a global network. In 2011, Jed McCaleb developed that verified transactions by consensus among the members instead of relying on blockchain ledgers. With this, a new version of the cryptocurrency was launched which effectively performs transactions and uses less electricity compared to Bitcoin. 4. Tether Tether is the 4th largest cryptocurrency by market cap. It was launched in 2014 designed to use fiat money digitally. To allow users to take advantage of trading, it facilitates trading between other cryptocurrencies with a fixed rate to the US dollar. It utilizes the blockchain network and similar technologies in transacting traditional cryptocurrencies sans its complexity associated with trading. 5. Litecoin Launched in 2011 by former Google engineer Charlie Lee, Litecoin was one of the first cryptocurrencies to follow Bitcoin. It's dubbed as the silver and Bitcoin's gold. This digital currency uses a scrypt for proof of transactions and it isn't controlled by any central authority. While Litecoin and Bitcoin are quite similar, the former provides a faster transaction and block generate rate. Today, Litecoin is the 6th largest cryptocurrency in the world by market cap. 6. Bitcoin Cash In May 2017, Bitcoin payments take about 4 days — a little longer for small transactions. They want something more practical just for day to day transactions so they implemented a change or code and then Bitcoin Cash was born on August 1, 2017. It's one of the most successful and the earliest hard forks in the cryptocurrency world. 7. Monero You can't trace Monero as it's extremely private and secure. It launched in 2014 and developed primarily on donation-based. Its main objective is to focus more on scalability and decentralization. They have achieved complete privacy with their technique called ring signatures. With the ring technique, a group of encrypted signatures appears and all but one is valid. While it's very secure, individuals who use Monero may be devising some criminal operations. All things considered, it's still one of the top cryptocurrencies in the world. 8. Libra Libra blockchain was proposed by Facebook and it's designed to improve financial services. It aims to include a new payment system that will meet the financial needs of billions of people around the world. It will be accessible to anyone and transactions will be easy and quick regardless of location or who is sending/receiving the money. Libra was created by David Marcus, Morgan Beller and Kevin Weil. 9. EOS Like Ethereum, EOS enables developers to build decentralized applications. Launched in 2018 and created by Dan Larimer, EOS aims to offer more scalability than its competitor cryptocurrency. Mining is not needed to produce coins with EOS. It consists of EOS.IO which acts as its blockchain network both for the digital currency and the EOS coins. 10. Binance Coin or BNB If you own a Binance coin, you can trade in several cryptocurrencies using the Binance cryptocurrency exchange platform. BNB was launched in 2017 and is one of the largest trade volume wise. You can use the BNB virtual money for paying goods and services, and for facilitating transaction fees. FAQs on Cryptocurrencies: Why should you use cryptocurrency? Unlike conventional currencies, bitcoin and other digital currencies are highly secured and offer extreme anonymity. In addition, the fees are lower and because it's decentralized — it's available to anyone. Transactions made in the system cannot be altered nor reversed. It's completely safe and secure. What is a cryptocurrency wallet? A cryptocurrency wallet is where you store your cryptocurrency or private keys. The latter serves as an address to which a user can send cryptocurrency. You can't transact anything without the private key. There are several cryptocurrency wallets available in the market today: Internet-connected wallet is the hot wallet which is easier to spend although vulnerable to attacks. You are more protected from cybercrime with cold storage or wallet. Do online casinos accept cryptocurrencies? Yes, in fact, there are a growing number of gambling sites and online casinos accepting virtual money. The popularity of digital currencies has enabled other industries to grow such as gambling and online casinos. Check out our top recommended casinos that accept cryptocurrencies. Cryptocurrencies are the new generation of money. You can acquire it by purchasing coins, by mining or by accepting payment for certain goods and services. The industry is still growing — you can invest in it, make private transactions, participate in online gambling, make a loan, etc. If you're not sure which cryptocurrency to acquire, make sure you check our list above and visit our complete guide to cryptocurrencies.
Cryptocurrency is causing the biggest shake-up to our financial system in history. In our ultimate guide to crypto currencies, you'll learn everything there is to know to get started on your journey. This guide will help you whether you're a laborer trading in your spare time or a software engineer hoping to change the world. So here's every question you wanted to ask about crypto, in its simplest form. Keep reading! Part 1: Defining Cryptocurrency In this first section, we'll break down the basics of describing cryptocurrency so you can apply that knowledge when learning about how to get started and get involved. What Is Cryptocurrency? Cryptocurrency is a type of digital currency. It isn't the same as digital money you would associate with your online banking, which uses traditional fiat money (e.g., the dollar) as its underlying currency. We can break down the term cryptocurrency to understand how it differs from the money we know otherwise. Crypto refers to the digital technology used to make it (cryptography), and currency refers to it being a money system. To explain in greater detail, we'll be using examples of situations you'll be familiar with in everyday life. No doubt you've read many confusing articles already, so we'll try to keep it simple! What Exactly Is Cryptography? Cryptography is turning something with meaning into an unintelligible code. It is best known for its computing role, but it dates back to ancient Egypt and hieroglyphics. Another example in more recent history is the Morse Code, where clicks represent letters of the alphabet. How Does Cryptography Apply to Cryptocurrency? Building a currency using cryptography, especially when computers are involved, is an efficient way to validate it as legitimate. Following a stringent set of rules and properties is the most secure way of confirming a unit as genuine. You'll read many articles about how Bitcoin is nicknamed "digital gold." And there's an excellent reason for that. Gold has specific properties and is considered a valuable commodity. Many conmen try to pass Fools Gold off as legitimate. Specialists understand the differences between the two and can validate its authenticity. With cryptocurrency, the specialist is the computer. The properties of the currency exist within the code, so all properties must apply for it to be considered genuine. But even a computer can be outfooled by a human who spots a loophole. What Makes Crypto Foolproof? Cryptocurrencies have different ways of achieving this. But the most popular one is what's called Distributed Ledger Technology, or DLT for short. DLT is a technology that consists of a copy of transactions (ledger) distributed to many sources. DLT creates multiple matching copies, cross-referenced for anomalies. Even though DLT is a brilliant way of making sure nothing goes wrong, it isn't strictly foolproof. There are massive amounts of work in progress to solve the problems faced in its current forms. One of the very reasons Bitcoin originated was to create a decentralized network to allow freedom to transact. The idea is to get away from the centralized banks that caused the economy to collapse in 2007. How Does Decentralized Crypto Work? Decentralized crypto works by spreading the ledger out as widely as possible to as many computers, otherwise known as nodes, as possible. The more copies of the ledger, the more accurate the information is. As a result, any modifications have to be approved by the majority of copies. There's a term you will hear in the community called a 51% spend attack. Suppose the majority of ledgers contain the harmful code caused by the hacker. In that case, their majority vote overrides the legitimate code. This is why DLT must be spread as widely as possible to minimize this risk. It's also a leading cause of innovation in the space, which we'll discuss in more detail later. How Does Centralized Crypto Work? It's very similar to a bank. One majority monitors it, and you are putting your trust in someone to ensure it remains authentic. Let's go back to the gold scenario and dig deeper. One day, the accountant who looks after all the mine owners' transactions can't afford to pay his bills. So instead of $1000, he writes $100 and pockets the other $900 for himself. It takes years for anyone to realize that money is gone. On the flip side, another mine has a different set of transactions, mining coal. This accountant is a well-respected member of the community and prides himself on transparency. He has nothing to hide. His books are fine. So you can see here, with a centralized system, it all depends on who is looking after your assets. If you are the kind of person that will lose or spend banknotes, chances are you'll put them in a bank to keep them safe (pun intended). What if One Person Owns 10,000 Copies? Well, that is a real thing. And it's the source of much controversy in both cryptocurrencies and the real world. It's more reliable than having one copy but still requires trust on your part that the company holding your assets will look after them. You could have ten accountants working for the same mine in the gold mine scenario, each with a ledger copy. But if the fraudulent accountant says, "I'll give you each $50 to keep quiet", everyone changes their versions of the same book to match and read $100. It's the main argument why many believe a centralized system is broken and corrupt, even if all the foolproof technology exists. Bitcoin 21 million? bitcoin blockchain has a stipulation—set forth in its source code - meaning that it have a limited and finite supply of 21 million bitcoins. What is Bitcoin Cash? Bitcoin cash cryptocurrency was created in 2017, from a fork of Bitcoin. 1 Bitcoin Cash enable more transactions and payments to be processed. In 2018 yet another fork initiated and split into Bitcoin Cash ABC & Bitcoin Cash SV. So Is Centralized as Bad as It Sounds? Well, no. There are plenty of circumstances when a centralized network is vital. Otherwise, the asset's existence is rendered useless. There are many utilities when a company or government may want to operate a ledger for their purposes and not for public resale. Legal documents are a great example of this. A centralized database with many copies of the ledger will ensure that nobody can tamper with land ownership. As another example, sensitive files could be encrypted yet ingrained in the blockchain to avoid any editing or malpractice. Whether any of this happens, in reality, is relatively unknown. But the possibilities are there should anyone need the technology for their personal use. Is This How Cryptocurrency Was Born? Yes! A little history lesson will explain everything you need to understand why cryptocurrencies exist. We could jump in with the trading information, but you'll end up trading the wrong coins. Learning the history of crypto will ignite a fire inside you, and you'll soon begin to understand how crypto can change the future. Part 2: History of Cryptocurrency Throughout the last hundred years, generations have lost trust in the banks. They have sought alternative means of making sure their wealth is kept safe, beyond the traditional banking system. 20th Century Rebellion Those who lived through the Wall Street Crash and the Great Depression of 1929 kept all their cash hidden in their house. This generation hugely distrusted the banking system, who they felt was gambling with their wealth. Many bought gold jewelry and other assets to make sure they were protected. Their children, the Boomers and Generation X, grew their wealth from nothing. They were the generation that gamified the bank balance. So they did everything in their means to protect their wealth by buying up houses and renting them out to those less fortunate. They were the generation that recycled their investments and built empires. 21st Century Rebellion And then there are the Millenials. Just like their grandparents of the 1920s, they ended up bitter and miserable with good reason. They're bitter at the banks for preying on the vulnerable, pushing house prices beyond affordability, and leaving renting as the only option. Graduates lucky enough to fund their education only went back to university because there were no jobs available. And to top it all off, those born in the mid-80s graduated in the years of the Great Recession. This was quite possibly the worst time to try and find a steady job. As a result, we end up at Bitcoin's birth in January 2009 as a decentralized peer-to-peer form of cash, with no middle-man. It promised to shake up the financial world for the better—the digital anti-bank. So Who Invented Bitcoin? It's the world's biggest mystery. Nobody knows. Created by an unknown source called Satoshi Nakamoto in 2009, Bitcoin was a rebellion against the banks. Many theories surround Nakamoto's identity. And no matter how many conspiracy theories or studies you read, you won't get a straight answer. The lack of conclusive evidence leads many to believe that Nakamoto's most likely answer represents a group of several like-minded individuals prominent in the cypherpunk space of the 1990s. These visionaries, including Nick Szabo, Hal Finney, and David Chaum, dabbled with digital currency in the 20th century. And despite Craig Wright's controversial claims, nobody has been confirmed as Satoshi Nakamoto to date. Why Do Other Virtual Currencies Exist? There are several reasons. The main one which underlines all other reasons is that it doesn't do everything well. The Bitcoin we know today is very different from the one developed a decade ago. There has been a universal shift away from cryptocurrency to the term "crypto assets" in more recent years. Cryptocurrency is now a type of crypto asset, along with security tokens and utility tokens. Cryptocurrency still defines an asset used for transacting money. Even Bitcoin itself is debatable whether it is a currency any more. Its comparisons to gold are so familiar that many see it in the same light, as a store of value, not a transactional currency. Here are some different use cases and concerns that have given birth to alternative technologies. 1. Tokenized Assets Ethereum is the second-biggest cryptocurrency to date and with good reason. It's an approach to the blockchain that is different in that it focuses on smart contracts. Like the age-old saying "written in stone," a smart contract allows writing conditions into the code. It ensures that an event will only occur if these criteria match. Compare this to Bitcoin. You can send Bitcoin to another person, but if you send it directly to their wallet, how can you guarantee they will return it? With Ethereum, conditional transactions allow you to lend and borrow without a middle-man involved. An exchange such as Binance offers centralized lending. The Ethereum network allows for decentralized finance or DeFi for short. 2. Privacy Concerns One of the biggest urban myths around Bitcoin is that it is anonymous. And that isn't true. It is straightforward for someone competent enough, or a computer, to analyze usage patterns to determine the source of illicit funds, for example. To many, this is a great advantage. Still, even to innocent individuals who require privacy, this can be a considerable disadvantage. For this reason, many innovators of cryptocurrency believe in adding levels of privacy to the ledger, and they do this in different ways. Monero, probably the most well-known privacy coin, uses ring signatures. This links a group of addresses to one transaction, with no clear idea who transacted. Other coins, such as Dash, use a technique called mixing. Think of this as putting your cash in a bucket of 500 coins, and the recipient pulls a random coin out. The chances of it being the same coin are very slim. Mixing can be taken further and used to exchange currencies anonymously. 3. Security Risks As we discussed earlier in the article, not all cryptocurrencies are foolproof. Many scientists believe that even the most secure cryptography won't be so secure once quantum computing arrives. One currency paving the way for this is QRL or Quantum Resistant Ledger. The technology here goes way beyond the beginner level. It's entirely plausible that their technologies will be implemented later by Bitcoin and other currencies. Still, for now, they are leading the way in protecting the future of cryptocurrency. 4. Non-Blockchain Technology These are a rare type of crypto asset, but the big one that is mastering alternatives to a blockchain is IOTA. IOTA works on a distributed ledger concept. But instead of a blockchain, it is a Directed Acyclic Graph (DAG). It's known affectionately as the Tangle. Its name derives from its appearance. For every transaction, two other users must approve it as valid. In turn, two users must authorize their transactions. This webbed network of transactions means that, just like a spider's web, the more the spider weaves the web, the stronger it becomes. All units of IOTA existed from day one. There isn't any mining, and the network is entirely free. Free transactions make it excellent for the future smart home, where microtransactions will occur. And they don't necessarily have to be financial either. It can be a car pulling up to a traffic light to tell the traffic light to change. You can also get paid to walk per meter in real-time via an app on your phone. Many technologies have the ability to microtransaction to some degree now, but the cost of transacting halts significant progress. Feeless transactions are something IOTA looks to remove from the equation. Another area this would greatly benefit is banking transactions. IOTA is such a pioneering technology that it has to be controlled by a centralized technology called a coordinator to avoid the network collapsing. The day the coordinator is removed, and the system becomes decentralized, its use cases become endless. Many believe it will pioneer a new wave of crypto technology. What About Stablecoins? Stablecoins are a category of cryptocurrency all of their own. In all their guises, they are designed to mirror a FIAT currency. The most well known of these is Tether (USDT) and DAI. Both coins mirror the US Dollar, making it easier to buy and sell assets without converting into FIAT money. Most investors will only trade back into FIAT money when they need to spend it elsewhere. Understanding the different types of coins is vital to do your research and understand which is the right choice for you to invest. Part 3: Where to Find Crypto Currencies Stop right there. There's something else we need to cover. You may know which coins you like, but do you understand the importance of having a diverse portfolio? What Makes a Good Portfolio? There's no right or wrong answer here. If you are well-versed in trading other assets, you won't need any help with this. Simply find a dynamic that fits your current portfolio. If you are new to this, it's simple. Don't put all your eggs in one basket, as the saying goes. Don't just buy half a Bitcoin and leave it. Bitcoin might look like it will be a long-lasting success story, but what happens if the blockchain gets hacked and it becomes worthless? You need a backup investment. We suggest doing your research on this one. An excellent way to spread risk is to start with three or four different types of coins and stick to the big ones at the start. You can find out their rankings on the ultimate crypto database CoinMarketCap. Then leave it. Do your research, follow the news. But don't keep messing around with it unless you need to. After a month or two, you can see what's working for you and what isn't. But you'll learn that's not the full story. Sample Portfolio Distribution Rebalancing a portfolio is sensible as part of a plan to which you can commit. For example, if you have $700 invested, your portfolio might look like this on day one: BTC - $200 ETH - $200 BNB - $100 IOTA - $100 BAT - $50 ZEN - $50 Let's say you find that in the first month, your IOTA doubles to $200, but your BTC has dropped to $100. Transferring $100 from IOTA to BTC means that you are rebalancing your portfolio. That way, you can buy more BTC, so when the price of BTC doubles, you will be in a better position than before. That's the basics of it. You can also cost average, which means sticking to a set amount invested each month irrelevant of whether it goes up or down in value. That way, you take an average price, and the whole experience becomes less risky. Now we've covered some different types of assets, and you have a strategy in place. You'll need some crypto! Getting hold of crypto can look like rocket science. But with today's choices, it's easier than ever to get started. You just have to decide what is the right path for you to take. There are two main ways, which can be sub-categorized further. 1. Trading and Investing Coins Investing is the go-to approach for any novice. It's simple enough to understand, and as long as you do your research and start small, you'll have no problems getting stuck. With the wealth of knowledge you have from earlier in the article, you can choose which path to take. In nearly every circumstance, you need to sign up for a reliable, trustworthy service that will accept your cash. To do this legally, you need to go through a centralized exchange. You will then have to provide your personal information regarding KYC, AML checks. Checks allow companies to trade legally and abide by laws relevant to your country or state. Sorry folks. There is one other way, but it is nowhere near as convenient or financially viable. Crypto ATMs are appearing all over the globe at a rapid rate. These allow you to deposit cash in exchange for Bitcoin, Ethereum, and other coins. All you need is a personal wallet set up with an address you can use. As we said before, while it's more private to use an ATM, it is near impossible to remain truly anonymous. Plus, the commission rates are so high you will wish you signed up to use your bank account instead. What Do I Need to Start Trading? Aside from a bank account and exchange account, you'll need somewhere to store your coins. Coin storage is known rather appropriately as a wallet. A wallet is locked and comprises of keys that unlock it so you can transact. There are public keys, which is a bit like your home address so people can send you money, and the secret key, which is like your front door key. Never, ever, share your secret key. We'll explain this in detail below. There are different types of wallets, depending on your chosen coins. It's best to keep things simple at first and stick with an all-in-one solution. There are three different types of wallets: Exchange: As expected, this is keeping your coins on the exchange where you purchased them. Hot Wallet: Refers to a wallet that has access to the internet. An exchange is a hot wallet, but so is a mobile app or a web wallet. Cold Wallet: Refers to a wallet that has never seen an internet connection. A cold wallet is the safest solution. In the early days, this would have been a wallet code on a piece of paper generated on a computer that hasn't touched the internet so that no hackers can obtain its information. How Do I Keep My Crypto Safe? As more people invest in crypto every day, sadly, more people get your money. They can prey on those who make easy mistakes and leave themselves open to attack. Today, cold hardware wallets exist made by Ledger and Trezor that rely on enhanced security to make sure your hardware wallet never sees the internet. They give you a phrase to write down on a piece of paper and keep somewhere safe. Again, never share your secret key with anyone you don't trust. You can have the most secure system in the world, but if someone knows you own crypto, nothing is stopping them from trying anything to hack you. Whether you choose to keep it in a safety deposit box or memorize it, make sure there is a plan in place should you die. The last thing you want is to have a substantial sum on a wallet only for your grieving loved ones to never receive it. And remember, the moment you think it's compromised, learn how to reset your key, transfer to a new wallet, and repeat the security process. 2. Earning Coins Without Purchasing If you've got a wallet set up and a computer, you can start earning. Whether it's mining, bitcoin gambling, or other unique ways to earn money, it's a great way to get involved in the community. Did you know you can obtain coins without spending any of your precious FIAT money? When Bitcoin first started, mining Bitcoin on your computer was the only way to get hold of Bitcoin without buying it off somebody. Contrary to what some may think, you don't mine Bitcoin; you mine blocks for the chain. Nowadays, mining comes in different forms and is sub-categorized into many different areas, with some being more profitable than others. What Are the Different Types of Mining? The two main ones are Proof of Work (PoW) and Proof of Stake (PoS). In proof of work, it's similar to the gold analogy, where mining companies are looking for locations to set up a mine. If one finds gold, they can keep some of the gold as a reward. They can also keep transaction fees people pay for the mine. In proof of stake, everyone works for a mining company. When one discovers gold, a winner gets picked at random. Each hour's labor counts as one ticket. The more significant percentage of the pot you stake, the higher the chances of winning, but it isn't guaranteed. So as you can see, these are two very different ways of mining blocks on the blockchain. And coins have a limited supply. Which, like gold, makes it harder to find. This process is known as Block Difficulty. It can also be affected by the number of miners and the amount of effort taken to find them when more people are trying to find a block, the difficulty increases. It has been well-documented that the global mining of Bitcoin is incredibly resource-consuming due to its difficulty level. So much so, that mining companies have set up servers on a mass scale in the Arctic Circle to keep the computers cool enough. In 2019, Bitcoin mining contributed to 0.27% of the world's energy usage, Switzerland's equivalent. It's no surprise that many are starting to favor proof of stake for the sake of the planet. How Do I Mine? For proof of work, you will need some computing hardware and software. This will run the relevant blockchain and allow you to mine blocks. With Bitcoin, for example, you would need a large multi-million dollar operation to make it worthwhile. Therefore, a great way to get started is to find an alternative, lower-cap coin (with lower market share). If it is in its early days, you should be able to mine using just a laptop or a dedicated miner. If it's proof of stake you're after, this can be done with your existing tech, and you can do this centrally through an exchange like Binance. If you want to stake in a decentralized manner, this is embedded in smart contracts. It can be done with your existing wallet by sending funds to a specific address. Get Paid by Your Employer in Crypto More employers than ever are starting to see the benefits of transacting in cryptocurrency. They can reduce costs, increase speed, and see increased staff morale as the assets' long-term value increases over time. All you need for this is a wallet to accept your funds. It's a good idea to check the regulations where you live. Reviewing the rules makes sure your income is declared correctly. The value can fluctuate rapidly, so it's essential to know how much your assets are worth at all times. Alternatively, you can, of course, earn crypto in online casinos. This is a great way to earn yourself a small fortune, but as always, only bet what you can afford to lose! Get Paid to Watch Adverts (Or No Adverts) If you've used Brave's web browser for its ad-blocking properties, you'll be familiar with its BAT token. BAT is a token run on the Ethereum network. It allows consumers of content, i.e., their browser users, to pay content creators as compensation for ad-blocking software. It works the other way too. If you allow Brave to show pop-up ads on your browser, they will pay you for the inconvenience in BAT tokens. Tokenization is excellent because you can decide what to do with your funds. You can decide whether you would instead get paid for adverts' inconvenience and use that money to support those who make a living from adverts that the browser blocks. It's an easy way to earn a little extra, whichever side you are on. You will need an Uphold account to withdraw your BAT tokens. Still, if that doesn't bother you, you can keep your tokens in the ecosystem and issue them to your favorite content makers. Does All This Mean I Need to Pay Taxes? Ah yes, everyone's favorite topic. Taxes! Of course, you should be following any laws that apply to your own country when sending, receiving, or trading in digital currency. Take time to research laws in your own country, as they can all be very different. However, if you are investing large sums, we would recommend seeking professional advice. Ideally, this should come from a lawyer or accountant to make sure there are no profound implications. There are dozens of tools available to guide you through accounting for your investments and filing your taxes. Doing so will allow you to report to your local authorities should it be required for those who are confident enough. And if you aren't confident, we recommend seeking professional advice — especially if your profits and losses are significant. How Can I Keep Track of My Finances? There are three main methods of tracking finances, and much of it depends on your current circumstances. For example, how many coins you are trading in? Do you have any stocks and shares? Are you a business? 1. Exchanges and Wallets For most people, this will be the simplest way. We recommend starting with one exchange, but move most of your coins to a hardware wallet like the Ledger Nano range is a great place to start. That way, you are spreading your assets out should anything terrible happen to one. You haven't lost them all. 2. Portfolio Tracker What if you have a more complex portfolio, whether that's in crypto or involving stocks? A portfolio tracker such as Delta or Blockfolio can be a great way to keep track of all your assets in one place. Many now show your wallets and exchanges automatically. So you don't need to manually input every single transaction, which can become a nightmare. 3. Accountancy Software Accountancy software is essentially a portfolio tracker that allows for tax reports to be made. One of the biggest names, Cointracking, has a wide range of tools, which is excellent for those with small niche coins. However, this can be overwhelming for some with the massive amounts of data, despite being incredibly useful for anyone choosing to day trade. Accointing is relatively new to space, but they have the interface elements nailed. It's simple to use and easy to read, so as long as you have the more popular coins. It's much easier to navigate. Koinly and Cryptotrader are two others that work well. Many also integrate with TurboTax if you are already using that to manage your accounts for other investments. What Is an IPO? Now you understand there are tax implications to investing in virtual currency. It's worth looking at how you can get in early and finding the right coins to invest. An IPO is an abbreviation of Initial Product Offering. A cryptocurrency IPO is very similar to an IPO in any other financial institution. It is a fundraising campaign that allows the creator of a crypto asset to raise capital to enable the project to succeed. They present a whitepaper of their project to the public, along with any other relevant information. The public can then decide if they wish to invest. Investing involves transacting in a universal cryptocurrency such as ETH. This tradition usually stems from a practical choice since many companies will launch their IPO as a token on Ethereum. They typically do so either as a test run of the final product or to prove that an individual owns those tokens ready for a main-net launch. What About Other Terminologies Like ICOs and STOs? These terms are more specific variations of the IPO. In the same way, cryptocurrency is a type of crypto asset. We would exercise caution with IPOs, however. Even if you manage to avoid a scam, it's easy to pick one that will fail. Therefore it is no different from investing in any other business or asset, such as stocks. The dreams of making millions investing in an IPO are real, but they are very risky, so make sure you do your research. And remember the mantra: Never invest more than you can afford to lose. What Is the Future of Cryptocurrencies? The 2020 Covid recession is the ultimate test for cryptocurrencies to see how society values its place in modern society. We are beginning to see traditional banking establishments experiment with cryptocurrency. Even Paypal has recently got in on the act. From the bank's side, this will allow them to integrate FIAT currency into the digital landscape. It allows for a smoother transition between different currencies while reducing cost and streamlining transactional data records. It's a controversial topic, but there are valid arguments, especially in regulatory terms. Having the banks on board makes regulation stricter, which, in the crypto landscape, is generally considered a positive. History shows that the right balance between law and freedom filters out unwanted parties from engaging in illicit activity. What is a Crypto hedge fund? Crypto hedge fund platforms enable crypto investors to invest in a expert-picked mix of cryptocurrencies. The crypto hedge fund enable investors with the option to mirror the market movements of Bitcoin and other popular coins including Ripple, Ethereum, and more. For Further Reading on Cryptocurrency Finally, there are plenty of other areas of crypto currencies we haven't fully discussed. For example, case studies of what happens when things go wrong, such as the infamous Mt. Gox collapse. Or, what it means to "hold through the FUD while not FOMOing over Vitalik's t-shirts, all while getting rekt trying to go to the moon!" The language used on crypto forums is, in itself, cryptographic at the best of times. Unless you are already a professional trader, stay away from the margin, futures, and options trading. If you don't know what you're doing, you can quickly lose your entire portfolio with a simple mistake. Leave that one to the pros until you become one! Now you are well equipped to understand the complex world of cryptocurrencies. You can go forth. You are in an excellent place to succeed in whatever path you decide to choose, whether it's trading, mining, or innovating. At the time publishing this guide bitcoin prices have reached time high and there's a big increase in bitcoin transaction and bitcoin exchange financial services. No one can really predict where the bitcoin btc will stand at 2021, however currently this digital asset market cap sits at 199.63 billion. Keep reading through our articles for more tips and information about bitcoin, Ethereum and other cryptocurrencies.
The Top 10 Failed Crypto Coin IPOs
GamblersPick posted a post in BlogBitcoin, the world’s most popular cryptocurrency, trades at 17,764.40 US dollars at the time of writing this article. Yes, that’s per single Bitcoin. It seems every few months, a new crypto coin enters the market. Everyone is looking for that Bitcoin success. Or, they’re looking to take advantage of it. There have been countless crypto scams and flops. While some cryptos have had successful IPOs, many others have suffered painful failures. Keep reading for the top 10 failed crypto coin ICOs. 1. Bitconnect Bitconnect is the first on the list because it was one of the most public flops of all the crypto coin fails. Many people accuse this coin of being a Ponzi scheme because of its multi-level marketing (otherwise known as a pyramid scheme). Bitconnect came out to the public in 2016. The premise of their company was for coin holders to be able to lend out their shares with the promise of a return in interest. Through Bitconnet, users traded their Bitcoins, which are highly valued, for Bitconnect coins. They promised gains as interest on the loan accumulated. Bitconnect calculated their interest payouts via a “Bitconnect Bot.” They issued payouts at a fraction of the rise and fall of Bitcoin on the stock market and were susceptible to an interest-earning cap. Eventually, disgruntled users started to complain there was a lack of transparency in how they calculated interest payments exactly. Eventually, unsurprisingly, the company was sued multiple times and the government froze their assets. 2. Bitcoin Diamond Bitcoin Diamond may have started innocently enough. However, its use-case was elusive, and eventually, it was subject to online scammers. Bitcoin Diamond started as a stem from Bitcoin. Though it had marked differences from its parent coin, the price of Bitcoin Diamond has dropped over 100% since its first public appearance. Part of the reason we consider Bitcoin Diamond a fail is because of the many scammer applications of the crypto. Some websites emerged that claimed to exchange other cryptocurrencies for Bitcoin Diamond. However, those sites turned out to be stealing users' money. Users’ lack of trust toward currency exchange caused the crypto to fall out of popularity. 3. XEM (NEM) The New Economy Movement (NEM) launched its blockchain in 2016. They developed the cryptocurrency on an open-source platform, which immediately boosted its popularity. Though the currency is successful now, in 2018 it suffered a large fail when a Coincheck (a Chinese currency exchange company) reported that over 20 million dollars in XEM was stolen. XEM suffered a major loss of users and popularity. 4. Ripple (XRP) Ripple is another cryptocurrency with promising beginnings. Yet, they were unable to keep the momentum going. When going public, Ripple found that they couldn’t compete with other cryptocurrencies on the market. Since beginning trading, Ripple has lost over 40%. It’s no surprise they’ve not been as successful as their top competitor, Bitcoin. In 2018, a lawsuit claimed the company was selling unregistered coins and creating a never-ending supply of coins. Though that method might keep their product in circulation, it proved to decrease its value. 5. Universa This Russian crypto coin began its short time in the spotlight with a not-so-meager 28 million dollars in initial coin sales. Not only did the company do well with sales, but they were also gearing up for the future. Soon after having a successful initial coin sale, they partnered with a local Russian bank. Things were looking up for the company by all accounts. However, knowledge of disagreements between the company’s executives became public knowledge. Once their dirty laundry was out in the open, the coin dropped so significantly that HitBTC (a respected crypto exchange platform) delisted the currency. 6. IOTA (MIOTA) In 2016, IOTA went live with 500,000 US dollars donated to its cause. The company started with a fixed amount of tokens, which helps maintain their value. The currency has suffered rises and falls throughout its creation, like any other cryptocurrency. However, in the past two years, the company has failed to take advantage of a want in the market for new cryptocurrencies to buy. In 2018, the company lost 1 billion dollars in value. Unfortunately, 2019 wasn’t any better. It seems this crypto coin is on the decline. 7. Quantum (QTUM) Quantum is a public access blockchain that is secure and simple to use. Their business model targeted mostly large businesses. However, despite open source code and all the ingredients for a successful launch, QTUM went down almost 98% in 2018. Of all the cryptocurrency losses in 2018, Quantum suffered the most. 8. Waves (WAVES) At the end of beta testing, Waves was making waves (pun intended). They started with a 6 million dollar transaction day. They quickly started gaining traction, mostly due to their easy to use interface and fast transactions. However, after the first year and a half of beta testing, they decided to launch their entire program. Only, they were immediately hacked. It turned out their easy interface not only made it simple for users but also simple for hackers to get into. 9. SpaceBit SpaceBit promised to be the most exciting cryptocurrency of all time. They spoke of launching satellites into space that would allow access to crypto coin blockchains for everyone around the world. They did the media circuit, they got everyone hyped up, and then nothing happened. SpaceBit might be the ultimate fail because it never even made it to a demo launch. 10. DogeCoin Another crowd favorite, DogeCoin started as a joke. However, as fans flocked to the cute dog logo, it became a real crypto coin to exchange. Most famously, the DogeCoin user community raised enough money in 2014 to send a Jamaican bobsled team to the winter Olympics. But the crypto coin miracle came to a screeching halt when it ran out of money. The company founder decided to end all exchanges of the currency and essentially ran off with the money. Since then, DogeCoin is all but completely dead. What Crypto Coin Will You Bet On? The options for crypto coins are limitless. It seems like no matter how good the market looks for one company, it can all come crashing down in a matter of days. Crypto coin follows its own rules when it comes to what makes them work. Deciding where to put your money is the ultimate gamble. Read the latest about bitcoin predictions: Will bitcoin be Traded at $318,000 by 2021?