fbpx
Connect with us

CryptoSpace

How to participate in the token economy? A definitive guide

Published

on

Token Economy

Heard enough about blockchain and bitcoin but wondering how you can be a part of this exciting digital token economy without losing your shirt?
Highlight and Share any text
These days, everyone is bombarded with blockchain and bitcoin news. It has become the new dinner table conversation. If you have wanted to take part in this exciting digital token economy, but did not know where to begin, then, you are in the right place because we are going to explore all the different ways you can get your feet wet in the token economy, including the free options that are available.

Let us begin.

Creating content in the form of articles, blogs, YouTube videos, etc., is one way to set your foot into the world of cryptocurrencies. This is also the easiest way to start earning crypto without actually investing any of your fiat earnings.

  • How does it work?: You create content on blockchain-based crypto platforms, and based on the engagement you create, each up vote, comment and/or viewership creates a monetary value for your content.
  • Benefits: Depending on how well your content does, you will see an immediate monetary benefit from your content.  You also get the lion’s share of the income generated by your content.
  • Drawbacks: Compared to popular entertainment platforms, like YouTube and Netflix, crypto platforms are yet to garner a large audience.  Although more and more users are joining the movement, it is still in its infancy.

Examples

  • Basic Attention Token LogoBasic Attention Token (BAT )

You can start earning cryptosimply by using Brave Browser and its native crypto currency called Basic Attention Token (BAT), instead of using a mainstream browser. Brave Browser also helps you to block trackers and ads to save you time, all the while helping you choose which ads you want to pay attention to. You will be rewarded for viewing an ad. It also gives you free BAT each month for you to tip your favorite publishers who are verified on Brave Browser.

Download Brave Browser here, and get started today.

CryptoTapas is a verified publisher on Brave. Consider a tip (costs you nothing).
Basic attention token-how it works

Publish0x logoBeing a relatively new platform, your profile has to be approved to start writing articles, however, you can still start earning crypto by being a reader. That is a unique feature of Publish0x – both publishers and readers are rewarded in multiple cryptos on Publish0x.

Another popular blockchain-based blog that helps people monetize their content instantly.  If your content is good, you could generate substantial earnings. Look at one of the posts that’s trending today on Steemit.  It has made $256 already. Not all posts manage to make that kind of money, but if you keep posting regularly, you can build your own viewership and make some money on the side.

Steemit- how it works

Minds logo

In line with Steemit, Minds.com also helps users to create and monetize their content. In addition, you can use the tokens your earned on the platform to boost your content. One token will give you 1,000 impressions. You can use this to advertise your own content or other content.

Dlive logoPewdiePie made DLive sensational by walking away from his 93 million user base on YouTube to become exclusive content creator on DLive. YouTube (and other mainstream channels) pay content creators a miniscule percentage of the ad revenue. Blockchain-based platforms reverse that. They give content creators the major share while they take only a small share to maintain the platform.

Imagine BC logo

Imagine BC is a combination of multiple platforms in one.  They want to help you monetize your attention and your intellectual property. You can check the whole interview we did with the CEO of Imagine BC here. Their platform will be open to the public shortly – so get on the ground floor of this project.

  • Crypto Lending

If you have already invested in cryptocurrency, or considering it, you may want to learn about crypto lending platforms.  These lending platforms not only lend money, they pay depositors decent interest rates for depositing their tokens. Some of these platforms provide custodian facilities to address the safety issue. 

  • How does it work?: You deposit your crypto onto their platform.  They will use this crypto as collateral to extend loans to those who are in need.  In turn, you get a decent interest rate for putting your money on their platform.
  • Benefits: Much higher interest rate than any bank or institution in America (and most developed countries).  Ability to earn your crypto by simply depositing on their platform. Automated and easy process. Your original deposit remains in place while you earn interest.
  • Drawbacks: Your coins will be in the custody of a third party.  Although some of these platforms use reliable custodians, that itself does not guarantee the safety of the funds.

Examples

Celsius Network logo

We like Celsius Network because it is backed by Alex Mashinsky who is on a mission to change the current financial system. He is a successful entrepreneur with a deep knowledge of how Wall Street works, and he brings this knowledge to Celsius Network. Interest rates range from 2.5% to 10%.

Demand and supply determine price.  Staking exploits this basic economic premise.  In simple terms, staking is the process of holding on to the cryptocurrency you own, and keeping it in a wallet for the company to verify that you do indeed hold the asset. 

  • How does it work?:  Once you have bought the cryptocurrency, you have to follow the instructions provided by the specific project. For example, some projects require you to hold your cryptocurrency in a specific wallet, like MyEtherWallet. Exchanges such as Binance and KuCoin have been pretty good at helping their customers stake the coins straight from the wallets on the exchange (Warning: We do not recommend that you hold your assets on any exchange; when you hold a crypto asset on an exchange, you do not own it and consequently, it can be stolen during an exchange hack).
  • Benefits:  Staking does not need investors to have technical knowledge, just enough computer literacy to follow the simple instructions.
  • Drawbacks: Traders swear that staking does not fetch as much profit as trading does.  Also, while you may be receiving dividends for holding the crypto asset, given how volatile the markets are, the actual value of your asset may continue to drop and your dividends may not be worth much.

Examples

  • PundiX LogoNPXS: This staking program enables you to keep your NPXS tokens on MyEtherWallet (or supporting exchanges) and they verify the proof of your ownership each month by taking a snapshot (snapshot in this context involves screening the blockchain itself to confirm the wallet addresses that hold NPXS on a given date); the addresses that hold tokens on the day that the snapshot is taken will be rewarded with a pre-set percentage of NPXS tokens.

 

  • Kucoin logoKuCoin: KuCoin is an exchange that shares the profits from its trading platform with those who hold KuCoin Shares (KCS). Dividends are distributed at the end of each day. KCS must to be held on the KuCoin exchange itself.

 

  • Neo logoNEO: All holders of NEO receive a dividend in the form of GAS, a native currency on the NEO platform. GAS is required to be paid as ‘fees’ for any services on the NEO platform. NEO in turn pays the gas earned on the network to those who hold NEO in their wallets.

 

  • Trading

Many describe the cryptocurrency market as “a speculators wildest dream”. In which market can you find an asset that rises and falls in double digit percentages,and yet increases 100% in value over the course of a year? Hard to fathom, but bitcoin did precisely that in the past year.

  • How does it work?:  You can open an account with Coinbase and start trading, that is, buying and selling crypto assets.
  • Benefits:  Volatility in the cryptocurrency market means that it has a great upside for people with trading experience.  Sometimes the volatility may cause people to lose large sums of money, however, those who are able to play the volatility have gained significantly.
  • Drawbacks: Not for people with lack of knowledge on how markets work and how to trade.

Examples

  • Trading, for the experienced
    • coinbase logoCoinbase: Coinbase is quite popular among the American audiences. They have a limited number of crypto assets listed, however, most of these projects go through a stringent background analysis, which means that most of them have potential.
    • binance logoBinance: Relatively new exchange that has quickly risen in popularity. Binance lists a lot more assets than Coinbase. However, they are going to shut down trading for Americans from September, 2019. If you are not American, you may be able to use the platform to trade.
  • Copying other traders, for the not-so-experienced
    • etoro logoeToro: eToro offers a feature the allows its customers to copy the trades of their more experienced (and hopefully profitable) traders. This means you can simply choose to follow other veteran traders and get in on the action with them.
  • Investing

Investing in Cryptocurrency

Many people in the crypto space swear by bitcoin. Why not? Even in this volatile market, bitcoin has spiked 100% from its prices of last year. It is only 55% of the value of its all-time high. So,if you bought all of your bitcoin at the peak of $20,000, you would still be underwater. However, if you continued to buy bitcoin at set intervals without paying attention to the price, then your dollar cost averaging would have kept you afloat. At least, that is the theory of those that keep buying a small amount of bitcoin each month.

  • How does it work?: The process is simple, you buy your digital assets from one of the known exchanges, like Coinbase.
  • Benefits: According to one theory, right now, only about 1% of 1% of the world’s population, with access to internet, is invested in cryptocurrency (specifically, bitcoin). If the blockchain becomes the norm in the next decade, and let’s say it captures 10% of the total internet user market, the potential upside is huge (Warning: not a financial advice).
  • Drawbacks: The volatility of this market is the major drawback. No one knows which crypto project will become successful and which will bite the dust. There are over 2,000 projects,which can make selection somewhat overwhelming. The digital assets listed on Coinbase are usually regarded as a good start because of the vetting process they have. You can check our top five cryptocurrency picks that have long-term potential here.

Examples

  • HODLing: HODLing (short for “Hold On for Dear Life”) is the word that crypto lovers use to indicate that they are not going to sell their assets based on price action. They are in this space for the long-term, and short-term corrections do not bother them. For many investors in bitcoin, this strategy seems to have worked out so far.
  • IEO: Initial Exchange Offers are ways to invest in newer crypto projects through exchanges that offer these assets for the first time to their customers. These are similar to IPOs. but without complications and fewer barriers to enter.
  • STOs: A Security Token Offering is a method of investing in a project that aims to comply with securities laws. Investors in STOs may stand to gain dividends and price appreciation if the project succeeds.
  • ICOs: Initial Coin Offerings, although a dying breed within the crypto space, still exist. Most ICOs require participation using cryptocurrencies such as bitcoin or Ether. ICOs ruined the capital of many investors who thought they were catching the next bitcoin or Ethereum.

Investing in crypto is very risky. Thorough research is required before investing.

Mining Rig

We included mining further down the list of the token economy because it takes specialized equipment in many instances to participate. Nevertheless, there are many platforms that deliberately keep their mining protocols CPU friendly. One can also participate in mining pools, which combine the power of many computers onto a single platform to mine highly competitive coins (like bitcoin) and then distribute these to miners in the pool, based on the computing power they contributed. Mining pool operators take a small cut as fees.

This means that anyone with a decent computer can participate in the mining process.

    • How does it work?: You select a crypto an asset that you want to mine, and then confirm that you have the computing power required to participate.  The process includes downloading the wallet, syncing it with the network and allocating your computing power to the network to participate.  It’s that simple. If you are using a mining pool then you simply register and follow the instructions specific to the mining pool.
    • Benefits: If you participate early in a project that has potential, before the competition arrives, you could (in theory) make a decent profit from mining. Catching these projects early, before other miners enter with a lot more computer power, is somewhat of a challenge. 
    • Drawbacks: You can mine newer cryptocurrencies that have lower computing power requirements, however, they may not be successful enough for you to be able to sell it in the market. Also, be aware of the energy costs; you have to ensure that your revenue exceeds your costs.

Environment: Some mining operations can create massive amounts of heat.

Examples of mining pools:

  • Antpool and Slushpool are popular mining pools. As stated before, you have to ensure that your electricity costs are not higher than the rewards you get from either mining coins yourself or through pools.
  • Creating your own cryptocurrency

create your own cryptocurrency

If you have an amazing idea that you believe will revolutionize the decentralized token economy, you can create your own cryptocurrency. Build the platform, and invite people to test your platform by offering (we will talk about airdrops next) your tokens to them to test the platform. For instance, let’s say you created 2 billion tokens and give out 500 million tokens for free with an airdrop or bounty program, or as a reward for people to perform certain actions.

Let’s say, people like your idea and you see traction on your platform. Now, you can pay fees to a reputable exchange to list your token. If your idea is viable and has a decent following, there is a good chance that your tokens will be worth something. As an example of this, let’s say you have spent $100,000 on creating the platform, website and a listing on the exchange. After listing the tokens, let’s say they are worth 1/10th of a cent; that is, you could get 10 tokens for a cent. This may sound like nothing, but the 1.5 billion tokens you kept for yourself are now worth $15 million!

You have just created $15 million worth of capital from a mere $100,000 total investment. Some tokens were created without that initial capital. DogeCoin is a classic example, which was created to mock the Initial Coin Offering (ICO) frenzy and madness around cryptos that were sprouting everywhere. The irony is that DogeCoin itself has a market cap of $386 million dollars as of today (July 1, 2019).

Instead of just giving out tokens for free, you can pitch your idea to initial investors (VC and retail), and sell the tokens to them at very low price. This is the idea behind ICOs. When you sell the tokens that you created on the blockchain through a crypto exchange directly, it is called an Initial Exchange Offering (IEO).

If you issue the tokens with a promise of paying out dividends in the future, and in compliance with securities laws, then you are issuing security tokens through a process called Security Tokens Offering (STOs).

  • How does it work?: If you have a background in basic computer programming, you could code your own cryptocurrency on top of an existing blockchain, like a bitcoin blockchain or Ethereum blockchain. If you do not have any technical background, then you can use platforms that can help you create your own custom tokens in minutes.
  • BenefitsIf your idea is really viable and you have the know-how to pull it off, you may be able to raise the capital you need without begging for VC funding, at least, that was the concept behind ICOs before the scammers swarmed in and scammed people out of their hard-earned money. This method is still in use, however, you have to have a great product, a team and a problem that needs a blockchain solution.
  • Drawbacks: Creating your own tokens is easy, but getting people to accept and use it might be an uphill battle in this day and age.

Examples:

  • Assetplatform or Coinpress [no affiliations, please do your due diligence] help you to create your own cryptocurrency in minutes.
  • Airdrops

AirdropsWhen a company creates it’s own token, it needs people to know about it and start using it on their platform, to create traction for their project. What most projects do is start a website, create an explainer video, and tell people why their project may have a shot at solving an issue that needs a blockchain. Since people are not going to spend money to test your platform, companies give out free tokens for people to test out the platform. Think of these tokens as ‘free samples’ that companies give out when they launch a product.

These free tokens could be given out to everyone who owns tokens of a certain platform (bitcoin, for example). Since people do not have to do anything to get these free tokens, it is called an airdrop. Some airdrops may require people to be registered to receive the free tokens ahead of the launch. This is intended to create awareness of their project within the crypto community.

Stellar ran one of the biggest campaigns in history by giving away $125 million worth of Stellar Lumens.

airdrops list

We have a full article on top websites that keep track of all airdrops. You can check it out here.

  • Bounties

Companies may reward tokens to people who perform certain actions, like tweeting, commenting, registering, subscribing, sharing on Facebook, liking, etc. There are bounties of all sorts. Some bounties require that you contribute to the coding, while others may require that you write a review or an article.

  • How does it work?Find the projects that are giving out bounties (see examples below as to where to find these projects); perform the simple tasks and get rewarded.
  • Benefits: Relatively simple tasks to perform. Some of these projects may potentially become something substantial. This is an easy way to get free tokens without investment.
  • Drawbacks: These bounties may sometimes be worth only a few cents, or less. So, you have to decide whether or not it is worth your time.

Examples

  • Bitcointalk is the best platform to find all the bounties offered by various projects. This forum makes it a lot easier to keep track of the many projects that provide instructions on how to take part in their bounty programs.
  • Faucets

There are sites that give away free tokens, including bitcoin, for just logging in at certain intervals or for just signing up. These are called faucets. Although this sounds like a scam, some legitimate faucet sites do exist.

  • How does it work? You sign up at various faucet sites and perform the simple actions prompted. You receive a micro payout each time you perform the action.
  • Benefits: An easy, non-technical and cost-freeway to earn your free tokens.
  • Drawback: These micro-payouts are really micro. Unless you accumulate a substantial amount through faucets, it may not be worth your time.

Examples:

  • Cointiply: This faucet pays you for rolling a dice on the site, or watching videos, or playing games, etc.
  • Bonus Bitcoin: This is another faucet that gives away free satoshis (units of bitcoin) simply for claiming (hitting claim button) every 15 minutes. There are other ways to earn bitcoin satoshis on this faucet.

 

Bitcoin ATMWhile cryptocurrencies, as a whole, are still lagging in terms of mainstream acceptance, bitcoin and Ethereum are slowly becoming household names, especially bitcoin. This means there is a growing demand from people who want to put some small change into bitcoin. There is also a small group of people who hold bitcoins,and who want to cash out to fiat for their immediate needs.

Both these groups present an opportunity for a bitcoin ATM, which can help people buy and/or sell bitcoin and other popular cryptocurrencies. Just like traditional ATMs, the host of these machines gets to earn a commission each time a transaction happens.

  • How does it work: The process is similar to starting a new privately-owned ATM service, however, it is important to ensure that bitcoin and cryptocurrency sale is permitted in the jurisdiction you want to operate in. Once you confirm that it is legally okay to proceed, you check the various vendors that provide bitcoin ATMs and pick a machine that meets your budget, fees and space specifications.
  • Benefits: Relatively new opportunity and if you find a place with good traffic (like a banking district or shopping mall or places where people come to spend money) it could fetch some decent returns. Of course, you have to perform your cost-benefit analysis and consult a professional if this business is right for you.
  • Drawbacks:The majority of people who are interested in cryptocurrencies are well-versed with online buying and selling options. There is a growing interest among the general populace that want to at least buy a small fraction. This is the limited target audience, however, it is growing in size every day. Also, the need for bitcoin ATM’s could be solved with a simple app payment option once those become more widely used.

Examples

General Bytes: There are now a few players in the market that offer one-way (where you can only buy or sell), two-way (buy and sell) and point of sale machines. General Bytes offers various options for people interested in owning bitcoin ATM.

  • Earn by playing games that pay out cryptocurrency

crypto gambling

What can be better than having fun playing video games? What about earning free crypto? There are surprisingly innovative games that pay out crypto.

DigiByte was working on rewarding players of popular games like Counter-Strike, League of Legends, etc. At the time of this writing, clear information is quite lacking on how to earn DigiByte while playing those popular games.

  • How does it work? Most crypto gaming platforms will reward you for performing certain tasks, or reaching a certain level. When you unlock a level, you will receive a crypto reward.
  • Benefits: Turning what you already love doing into making some extra dough on the side is not a bad thing at all. You do not spend any extra energy to mine the crypto, instead you simply get paid crypto for playing games.
  • Drawbacks: Most of these crypto gaming platforms are not popular. What you earn playing these games may be very small in value, and sometimes could go bust before you cash it out.

Examples

  • Storm Play: We tested this platform for the purpose of this article. You can earn crypto in two ways. One way is to complete micro tasks, like taking a survey. We took a survey that required two minutes and resulted in 45K bolts (translates to about 15 cents). Not bad if you are doing this once in a while during down times. You will need to earn 200K bolts before you can withdraw. They also have a referral system to invite friends. If you would like to, you can use our referral code (ZFWRKUUF) which will fetch you 6000 free bolts.

storm play app

  • Gambling, although we don’t commend it

There are platforms that specifically let you gamble over the internet. The rewards are paid out in cryptocurrencies (like bitcoin) and most do not require your ID, although they may also be the ones that could run off with your funds one day.

  • How does it work? You create an account on the crypto gambling platform, and transfer cryptocurrency to your assigned wallet address within your account on the platform. Once your cryptocurrency is deposited, you can start placing bets online.
  • Benefits: Provides an anonymous gambling experience. Most payouts are instant. Some platforms may offer sports betting as well.
  • Drawbacks: Gambling, especially online gambling, could be considered illegal in many jurisdictions. Most of these online crypto gambling sites operate out of jurisdictions with zero to none investor protection protocols, which means, if you lose your funds, there may be no recourse available.

Examples

Wagerr: This platform offers lotto and sports betting opportunities.

What is Wagerr?

What is Wagerr? & How does it work?

Fortunejack: One of the leading places to play bitcoin video casino games online.

  • Taking Salaries in cryptocurrency

Salaries in Cryptocurrency

You may be surprised, but some companies are already forward thinking, and are offering their employees salary payment in crypto. Some blockchain companies even grant their employees stock options in crypto with similar guidelines as regular stock.

If you happen to work for a company that gives you an option to participate in tokenomics, you should look into it.

We discussed the intricacies of tokenomics in this elaborate article.

 

  • Taking payments in cryptocurrencyaccepting bitcoin

You can start accepting cryptocurrency in your business. You can simply start by accepting bitcoin or Ethereum, if you want to remain with mainstream crypto, or you can start accepting other cryptos that you believe in.

  • How does it work? You can start by using PoS machines that accept cryptocurrencies. Alternatively, you can provide your own personal wallet for people to scan and send you money. PoS machines will help you verify the transfers quite easily, while personal wallets may take more time, unless, you use cryptocurrencies like ICON. Bitcoin, with its lightning network, should make transfers fast to verify.
  • Benefits: There is a potential that the bitcoin or Ethereum that you accept for your services could increase in value. Since not many customers will pay using crypto, you could save up these crypto as an investment to hedge against mainstream vehicles.
  • Drawbacks: Cryptos may be difficult to liquidate. There may be restrictions in many jurisdictions and volatility is another factor that needs to be taken into account.

Example:  

PundiX (NPXS): PundiX is a manufacturer of point of sale (PoS) machines that accept cryptocurrency in place of fiat.

Pundi X in coffee shop

Pundi X – Making cryptocurrency accessible to everyone

More and more businesses across the world are using Pundi X solution to harness the power of blockchain technology. We have been deploying our blockchain-based point-of-sale (POS) solution and solidifying partnerships with governments, payment companies, and retailers. Together, we will achieve fast-paced growth. There are many reasons why people are now turning to digital currency.

  • Simply use crypto services to receive a piece of the pie

Ever wanted to take back control of your data, but did not know how? Or, wished your data received more than a like or a thumbs up?

You can start using some of the blockchain-crypto services to digitize your identity and start taking back controlof your data. Eventually, when more people start demanding better control and monetization of their private data, these platformswillwork better.

  • How does it work? You sign up with the blockchain service provider to create a digital identity that is unique to you, which sits on a blockchain without compromising your personal data. Once the ID is created, it is then tagged to your online footprint. Whenever an advertiser comes to pitch an idea to you based on your online footprint – the blockchain ID will act as the gatekeeper. Only those that are ready to work with the customer, in terms of usage of data, are allowed to see your footprint, and in the process, securing you a bigger chunk of the pie.
  • Benefits: This is an effective way to stop the exploitation by tech giants like Facebook, Google etc. from benefiting from user data and details of their social activity, without ever compensating those who create the data.
  • Drawbacks: All crypto services are in a relatively new phase. It will take a while for them to build the traction they need to go after the entire activity on the internet.

Examples:

hu-manity logoHu-manity.co: Richie Etwaru, CEO of Hu-manity.co, is very passionate about fighting for individual data privacy rights. He wants to eventually get the same rights to your private data as an actual property. His team has built an app for you to start participating in this fight. All you have to do is sign up on the app, and follow the steps; Hu-manity’s team will then go out and act as your private data gatekeepers. Based on your permission settings – anyone utilizing your data will reward you for the privilege. Check our exclusive interview with Richie to learn more.

imagine bc logoImagine BC: While Hu-manity wants to create digital property rights for your online identity, Imagine BC wants to create a platform where you receive rewards for all of your online activities. If and when this is realized, Imagine BC could drastically shift the way we view our private data and the content we create, we create and how we should be rewarded. Imagine BC will open doors to public registration shortly. You can see the exclusive interview here.

Resources:  Here are few resources for your reference.

Mining: Here are the places where you can find the latest projects that are available for mining:  Bitcointalk | Bitcoingarden | Reddit Channel | Bitcoin Forum

Airdrops: Check this article for details.

News: Stay up-to-date on the crypto market updates: Bitcoinz.news | CryptoZombie (YouTube) | Coindesk

Disclosure:  We have included referral links, wherever feasible, in this article.  You do not have to use them if you do not want to. Use of referral links does not mean endorsement or guarantee.

Thank you for reading the article.
Subscriber-Banner-smallIMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

Buy us a Coffee: Keep information FREE. We do not sell what we research. A small tip from you can help us bring you more content like this for FREE.
BTC: 37kJr9PodRHzsG5u1ZfKkfYpHFSZrS8s9n 

If you are thinking to open KuCoinKucoin Referralaccount, please consider using our referral link.

About the author

RK Reddy holds two Masters degrees, one in Accounting and another in Business Administration with over 15 years of experience in the financial services industry.

RK Reddy is an ardent fan of Blockchain and Cryptocurrencies. You can see the excitement about this new blockchain technology in every article on Cryptotapas.com. Sometimes this excitement leads to an overly optimistic view. Guilty as charged. RK Reddy says what may seem like an ‘overly optimistic expectation’ today may become an everyday norm in 5-10 years; look at the history of cars or airplanes, Blockchain and Cryptocurrencies belong to a similar frame of reference.”  Of course, that is just his opinion.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.


CryptoSpace

6 Massive Benefits of Cryptocurrency

Published

on

Benefits of Cryptocurrency

It is normal to be hesitant about using cryptocurrency as the medium of financial transactions. 

There is a school of thought which believes, it is a domain suitable for criminals, fraudsters, and terrorists. Cryptocurrencies allow them to maintain anonymity for discreet transactions and ransomware scams.

However, the increasing acceptance of Bitcoin as a digital currency has initiated a positive perspective around this mode. It brings a distinct set of pros for the users, making them overlook the risks tag along.

According to the Finder, a post on social media surfaces about Bitcoin every three seconds. If we do the math, it means 1203 posts pop up per hour, making it to 20 posts per minute.

A more general view on the crypto landscape speaks of its overall growth, too. Block Social tells us how cryptocurrency exchanges around the globe have exceeded 300 during 2020.

In fact, the success of crypto shows us the loopholes of the traditional banking system. If you, too, want to leap on this bandwagon and aren’t sure about your next move, this is the right place. Our blog sheds light on the positive aspects of cryptocurrency that make it a more established form of financial trade. 

Healthereum

1. Easy transactions

When dealing with brokers or legal representatives, you have to pay the transaction fee from time to time. This comes along with immense paperwork, commission, brokerage charges, and so much more. Using cryptocurrency eliminates the need for a middle man. The transaction changes into a one-to-one affair taking place on a secure network.

No wonder Forbes stated that adopting blockchain technology can save financial organizations around $12 billion yearly. A deduction of extra charges from third parties and reduced operations cost is saving millions for huge organizations.

Moreover, the transactions are transparent, making it easier for you to establish audit trials. There is no more confusion over who pays whom. All parties involved in the transaction know each other quite well. Accountability on each party grows.

2. Asset transfers

A financial analyst rightfully describes cryptocurrency blockchain to be a “large property rights database.” On the one hand, it helps execute and enforce two-party contracts on commodities such as real estate and automobiles. At the same time, it also facilitates special modes of transfer. 

As per Born2Invest, Bitcoin alone is responsible for an average of 350 000 daily transactions on the Blockchain. Meanwhile, Coinbase has 30 million cryptocurrency users (Block Social). The increasing figures of each crypto speak of its acceptance worldwide.

The parties involved in asset transfer can design contracts and add third-party approvals at a later date. It also helps to reference the external facts and gives the parties exclusive governance of their account. It reduces the time and money involved in asset transfers. Perhaps this is why US federal government spending on Blockchain shall reach $123.5 million by 2022.

3. Confidential transactions

Cryptocurrency purchases remain discreet. Unless a user voluntarily publishes his transactions, the purchase is never associated with their identity. In official scenarios, such as when you put your cars for sale, the parties must reveal an association with their cryptocurrencies. It helps to establish trust and relevance.

Within the cash/credit system, your entire transaction history turns into a reference document for the banks/credit agencies involved. On the contrary, cryptocurrency is a transaction that is a unique exchange between two parties. They can negotiate and agree on preferable terms. The information exchange takes place on the “push” basis. This means you transmit only that which you wish to send to the recipient and nothing else.

It keeps your financial history secure and guards you against identity theft. Chances of which are quite high under the traditional transaction system. 

On top of this, the combination of Blockchain with IoT is considered revolutionary by the experts. This has accelerated data exchange, lowering the operation costs, and improved the security of files. Your Tech Diet predicted that 75% of the IoT industry would adopt Blockchain technology by the end of 2020. Lack of exposure is, thus, something the entire industry is looking for.

4. Transaction Fee

You have probably faced hefty monthly account statements from your bank/credit companies. The transaction fee charged at every transaction you have made might leave you shocked. The whopping fee of multiple transactions can take you by surprise at the end of each month.

In the case of cryptocurrency exchange, the data miners receive their share from the cryptocurrency network involved. Transaction fee does not apply as the remote and separate computer systems that do the number-crunching get a pretty fair share. 

According to Investopedia, the Bitcoin reward for miners halves for every 210 000 blocks added to the chain. Nonetheless, this system has freed the transaction parties to pay the fee, making it the most feasible. 

However, there might be some external fee involved if you engage a third-party management service to maintain the crypto wallet. These charges are likely to be quite less than the transaction charges levied by the traditional banking system. 

5. Hold Ownership

The traditional banking system works in a manner where the amount goes to the nominee if a person passes away. The chances of the account closing are quite high when you infringe the terms of their services. Unlike this framework, digital currencies give you the sole ownership of private and public encryption keys. This makes it easier for you to identify the encryption network.

6. High security

Once a party authorizes the cryptocurrency transfer, they cannot reverse it. This is not the case in “charge-back” transactions allowed by the credit companies. Cryptocurrency gives you reliable encryption throughout the transaction process to keep it protected from bugs and malicious entities.

Systems like Binance Smart Chain are enabling people to do more with BTC.

Final Thoughts 

Cryptocurrency is taking the financial world by storm, and we know the reasons why. It is about time you kickstart your digital finances journey and make the most out of it. Who knows what surprises are about to come later in this landscape!

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

CryptoSpace

Cardano or PolkaDot? Which One to Invest In?

Published

on

Cardano vs Polkadot

There is a new battle in the crypto space.  Cardano (ADA) and PolkaDot (DOT) maximalists are headbutting as to which project is better and why.

The conversations are intense to say the least and we will try to provide our view on which one we are leaning toward and the reasons why, in this rather short article.

Just to be clear, we are invested in both ADA and DOT so we have a vested interest in both projects, however, we are now asked to pick one over the other and that brings us to this article.

Decentralization

The whole spirit of cryptocurrencies is the concept of decentralization, however, some of the more popular projects don’t seem to have a grasp of what that means.

Diem (previously Libra) or XRP etc., are controlled by a group for validators who could, in theory, easily collude, in our view.

With DOT, things are not as centralized as some other projects with about 1000 validators securing the platform.

However, ADA has the most number of nodes and has most of its circulating supply staked on its wallet. The community behind ADA has biggest proponents of decentralized frameworks.

ADA: 8 (top 10 is reserved for BTC)

DOT: 6

Team

Cardano boasts the maximum number of Ph.Ds on its team and has a more decentralized team structure.  You have teams that are working exclusively on wallet and staking while you have other teams focusing on interoperability. Yet, another team is focused on bridging projects from Ethereum to Cardano.

DOT has the ammunition of Gavin behind it. He is undoubtedly one of the brilliant minds in the space. 

However, as we learned in basic math, sum total is always greater than an individual unit.  This applies more aptly with these projects. In our opinion, Cardano has a greater edge when it comes to collective human capital.

Having Charles Hoskinson helps ADAs impression.

ADA: 8

DOT: 6

Social presence

There is no competition when it comes to social presence and engaging the community when it comes to the leaders of these two projects.

While DOT’s founder Gavin might come out as eccentric and polished in the social media, Charles takes the cake in engaging with his audience and making things sensible for the community.

ADA: 9 

DOT: 7

On a mission

Whenever you hear Charles speak about ADA you will immediately understand that he is on a mission to bring the marvels of blockchain enabled financial services to all corners of the world.

Cardano’s team is now focused on the South Africa continent to bring the under-previleged onto the world commerce through their platform. They are even close to signing a contract with Ethiopia government in 2021.

While DOT is catapulting the entire space forward it just lacks the same charm that comes with a project on a grandiose mission.

ADA: 8

DOT: 6 

Miscellaneous considerations 

Market cap: ADA has $20 Billion market cap while DOT has $19 Billion, as such they are on par with each other when it comes to valuation. The large cap is a stamp of approval from the crypto community.

Price: ADA is at around 60 cents while DOT has been stabilising at $20 at the time of this writing. When the newbies come to the market and they see they cannot afford Bitcoin or Ethereum, they will most likely go after the projects that are under $1. This does not mean DOT is inferior, it is just an edge that low priced tokens have over higher priced projects. It’s just a newbie mindset that drives higher demand during bull runs to lower priced projects.

Inflationary supply

DOT has an inflationary supply model while ADAs supply is capped.

Yes, DOTs supply is far larger than DOT, however, there is no new minting on ADA when compared to DOT.

Mainnet

DOTs technology is operational and is onboarding projects already.  ADA is scheduled to launch its mainnet this month (Feb 2021). ADA has been in works for many years now and if their product matches the hype and the wait – then it may not matter as much that they are late to the party. However, if there are issues with their mainnet – it may not bode well for ADA.

Conclusion: Total score

ADA: 33

DOT: 25

If you are a DOT fan you might think this score is skewed.   If you are an ADA fan you might think it should score perfect points in all fronts.

In fact, there are some areas where DOT is a clear winner like having a functioning platform. ADA, in our opinion, takes the prize with clear fandom, gigantic mission and a total brainiac project. 

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

CryptoSpace

Best of the Best YouTube Channels to Follow for your Crypto Fix

Published

on

Best Crypto Youtubers

There are literally 100s of crypto-experts on YouTube who claim to have cracked the secret code that can make you millions in crypto riches. 

Who should you follow?  

We have followed many YouTubers, subscribing and unsubscribing to avoid the noise and after having been in this space for over 4 years, we have narrowed our favorite crypto YouTube channels to just a few.

In this article, we will show you our favorite YouTubers and what we like about each one of them. 

Overall number 1: Coin Bureau

coin bureau When it comes to deep analysis, composed demeanor and outright professional crypto channel in the entire space, we have not come across anyone better than Guy.  

Not only is he great at the reviews and in depth analysis, if you have followed the channel long enough you will realize that he reviews the gems long before others pick on the momentum.  

He picks solid projects, never shills a shitty project to his followers and is upfront about his views which he backs up with solid research.

This is the best no-shill and no bull crypto channel on YouTube in our view.

Best original content: Chico Crypto

chico crypto review

If you love a bit of quirky, goofy and somewhat out there viewpoints on the crypto space then there is no one better than Tyler at Chico Crypto. 

His investigation stretches the boundaries of research (and sometimes common sense) but he does do a bang up job on every video.  

I am yet to come across a boring video on this channel.  I will admit that his live streams can be a drag sometimes but his followers seem to relish his presence.

You may not like or agree with what Tyler presents on this channel but you will absolutely be floored by the originality.   

Best TA: TIED: Crypto Capital Venture & Tyler S

                         Crypto Capital Venture Tyler S crypto

With under 90K subscribers at the time of this writing, Dan may not be the most popular of the Crypto channels [yet] but his TA analysis is just so easy to follow.

Dan makes it easy for non-technical folks to understand what’s going on in the market in the language of TA.

There are other folks on YouTube who are good at TA but their videos are so obnoxious that they leave you with a massive headache.  

Not Dan’s Crypto Capital Venture channel.   Dan walks you through the markets in such a calm, composed and professional manner that you might start caring about those candles.

We are forced to share the Best Title for crypto TA on YouTube with Tyler S. 

Tyler’s expertise on TAs is quite awesome and he has a funny way of delivering it too.  

Best expertise on the markets: Alessio Rastani

Allesio RastaniIt doesn’t matter if you are just lurking around the crypto markets or if you trade in the traditional markets…Alessio is one of the best guys on YouTube for great insights into the broad market and its impact on Crypto.

While everyone on YouTube (not the people on this list, of course) is either quick to FOMO or FUD, Alessio is just grounded in fundamentals and technicals.

When you are high on FOMO, he can bring you to the ground.

When you are getting buried in FUD, he can lift you up with facts, not false hopium.

Alessio is personable, professional and an honest guy to follow to understand the markets ahead of others.

Best round up of the market: AltCoin Daily

Altcoin DailyWant to stay up-to-date on what’s happening in the crypto space but don’t have time to keep up?  

Fear not. AltCoin Daily got you covered.

This channel is just a gem among the channels that bring crypto market updates in a concise and palatable format.

You can sense the dedication in the way Austin brings the updates and his opinions in front of his audience. No wonder the channel has recently hit over 420K subscribers.

Best humble and honest take: Crazy 4 Cryptos

Crazy 4 crypto

What does Crypto mean to you?

Most people will say ‘Freedom’, yet, most of the YouTubers we see on the Tube will be broadcasting from their bedrooms or backyards (nothing wrong with that) but not Dave.

He has been in Thailand and streams his videos directly from the beach.

You will immediately connect with his simpleton style and honest reviews.  

He has been touting about Theta when it was trading in cents and now those who followed him are very happy.

Besides Theta, Dave talks about a lot of topics in terms of storing your coins, being careful with people and how to have a long-term plan in space.

Honorable mentions

Team Underground (TA)

We had too many channels to weed out for the TA category and that is why we had to pick two winners, however, Team Underground is a channel we cannot skip.

This underdog channel has been more right about the calls than any other mainstream channel. If you like your TAs and technical side of crypto – be sure to check this channel out.

BitBoy

People either love him or hate him.  There is no middle ground when it comes to BitBoy.  

Personally, we have to weed out a lot of noise while browsing through his channel since he picks a new project every few days (or weeks) and can become overwhelming. 

However, the fresh content is worth the watch.

EllioTraders

The guy behind this channel is truly vested in the space. So much so that he recently launched his own crypto project.

It’s definitely refreshing to see the YouTuber taking his expertise into a live project.  

The reason we did not list this channel on the BEST list is because of the constant feed of projects he pitches that is a bit overbearing for our taste.  

Nevertheless, a great channel and great recommendations.

Conclusion

There are 100s of YouTube channels out there but not everyone is worth your attention. We hope you found some channels of interest through this article.

Note: if we missed any gem of a channel, please let us know and we will be more than happy to add it after review.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

Trending