Bitcoin as the first widely known cryptocurrency immediately took the place of a leader in the industry. A number of applied technological solutions in it, such as the use of blockchain technology, a distributed structure and anonymity, have become the main principles for other coins, which have been called alternative cryptocurrencies or altcoins.How to make money on altcoins, a list of the most promising coins of 2021 and other important information is further in our article.What are altcoins?Altcoins are alternative cryptocurrencies that, in addition to transferring value, offer users certain solutions that Bitcoin does not have.Despite the genius of bitcoin, created by Satoshi Nakamoto, the main cryptocurrency has a number of vulnerabilities. Altcoins, being inferior to Bitcoin in the scale of application and the balance of the internal structure, offer improved blockchain technologies and capabilities, unlike bitcoin, whose main function is the transfer of value.For example, such altcoins as Monero and Zcash offer anonymous transactions, and such an altcoin as Dash is easy to handle, has a high speed of asset transfer, and you can send it even without an Internet connection - just via SMS. The Tether stablecoin (USDT), is a US dollar in digital form.Types of altcoinsAltcoins, depending on their characteristics, can be divided into three groups.Unique altcoinsThese are altcoins that have exclusive technologies that are different from bitcoin. Examples include the Ethereum altcoin (ETH) with the function of smart contracts, or IOTA with its directed acyclic graph (DAG) technology, which is not a blockchain, or Dash (DASH) with its ability to transfer via SMS.StablecoinsSo-called stable coins, stablecoins designed to hedge financial risks, "digital havens", digital assets protected from volatility, which even the main cryptocurrency Bitcoin is subject to.These include such altcoins as Tether (USDT), TrueUSD( TUSD), Binance USD (BUSD), Dai( DAI), Gemini Dollar (GUSD).Read more: What are Stablecoins and how do they differ from other cryptocurrenciesAnonymous altcoinsConfidential cryptocurrencies aimed at users who want to hide their digital assets from prying eyes, whether it is the government or criminals.In addition to hiding wallet addresses and personal data of users, they also encrypt the movement of cryptocurrencies, transactions on the network, without disclosing information about the movement of funds from address to address.Most of the world's governments and financial regulators are extremely negative against this type of altcoins, calling them a tool for money laundering and terrorist financing.Earnings on altcoinsAltcoins, thanks to the constant fierce competition between projects and the rapid growth of the entire industry, offer enough ways to earn money for both experienced users and beginners. These methods can be briefly divided into earnings with investments and earnings on altcoins without investments.We can immediately say that the most realistic and effective way to improve your financial situation is precisely the ways of earning altcoins with investments.This both encourages the user to take a more responsible approach to the process of earning altcoins, and will help to avoid a long period of "swinging", during which the user will have to operate with amounts that at best barely exceed several tens of US dollars.We recommend reading: 11 ways how to make money on cryptocurrency with or without investmentsAltcoin earnings without investmentsLet's look at how you can earn altcoins without investing:AirdropAs you can understand from the name, alcoins "fall on you from the sky", that is, tokens are obtained for free. Many novice crypto projects want to introduce users to the capabilities of their cryptocurrency and send it to users who have completed simple tasks.Large amounts of altcoins should not be expected, but you will get the skills to work with cryptocurrency.Cryptocurrency faucetsYou perform a number of simple tasks on specialized Internet resources, such as viewing ads or selecting images for a very small amount of remuneration (on average up to $0.50 per 1 hour) and get altcoins.There is also no need to expect large sums, no matter how much time you spend on this type of activity.Subscription campaigns on BitcointalkThe most important forum dedicated to the topic of cryptocurrencies offers its users participation in subscription campaigns of various crypto projects in exchange for a reward in the form of tokens of this team.There are several pitfalls in this method, such as the status of the profile on the forum (the more prestigious it is, the higher your reward, respectively), the promotion of accounts on other platforms, access or ownership of a thematic Internet site. The better the situation in these matters — the better the bonuses and more altcoins.Read more: What is an airdrop of cryptocurrencies - is the game worth the candleAlso, the possible amount of remuneration in altcoins depends on the number of participants in the subscription campaign and the honesty of the team (there were precedents with non-payment and fraud).Affiliate programsBlockchain projects are interested in maximizing their influence and provide both site owners and well-promoted and popular social media accounts with the opportunity to earn money by providing a special referral link.For each user who clicked on such a link and performed the necessary action, the resource owner is given a bonus, usually in the form of payment with project tokens.Perhaps this is the most realistic and profitable way to earn altcoins without investment.Content on cryptocurrency topicsThe number of thematic cryptocurrency information resources is growing, and they constantly need high-quality specialized content. If you have the necessary knowledge and are able to coherently express your thoughts in printed form — this is a real way to earn good amounts both in altcoins or bitcoin, and in the usual fiat money.Ways to earn altcoins with attachmentsTradingIn fact, the same game on the stock exchange as in the case of stocks, futures or currencies. You will need the amount in altcoins, composure, the ability to "read the market", financial discipline and a lot of luck.Altcoins are very volatile digital assets, their price is constantly rising and falling, so if you have strong nerves and an excellent understanding of the situation on the cryptocurrency market, then you have every chance to multiply funds by correctly operating trading orders on cryptocurrency exchanges.Be especially careful with trading based on margin trading, since the wrong choice of "leverage", a bet, a traded asset or a crypto exchange can cost you all your savings, and literally in one second.Read more: How to invest in stocks and what you need to knowInvestingHere you will need savings, a deep understanding of the market and patience. Bitcoin is a direct demonstration of the high profitability of such activities with an increase from a few cents to tens of thousands of dollars for 1 BTC.Altcoins are not inferior to bitcoin in any way, and some of them have already shown impressive growth. But their stability is much lower than that of bitcoin, and in a bear market or during a crisis, they can devalue dozens of times!On the other hand, the price of altcoins at the moment is significantly lower than their previously reached maximum value and possible potential, and now, with a higher probability, is a very good time to enter them.The main condition for the success of investments in altcoins is the principle of distributing your funds among several promising projects (not investing all your funds in one promising project) and a very deep study of all available information regarding their technology, team, reputation of the founders and development prospects.Read more: Bulls and bears, as well as other animals on the stock exchangeYou should definitely study the latest news on projects, understand the trends of their development, analyze the project profile on Reddit.MiningMining is the extraction of altcoins through the provision of computing power for internal calculations of the project and support of its transactions.It is necessary to purchase either specialized mining devices (ASIC miners), or high-performance components for PCs or farms, depending on the consensus algorithm on which the altcoin works.It is also necessary to take into account the financial and time costs for servicing both the mining devices themselves, and for organizing the appropriate infrastructure for cooling them and blocking the noise coming from them.The cost of equipment is high, and the probability of profit is not obvious, since the volatility of altcoins or the increase in electricity tariffs can negate all the efforts of the miner.In addition, the time of private solo miners has long passed and to make a profit you will have to launch a very large number of ASICs, mining farms or join a pool for mining.Ways to earn money with investments, despite the real possibility of losing investments, offer the most effective methods of increasing cryptocurrency assets with competent financial management and endurance.Understanding the volatility of the cryptocurrency market and knowledge of the principles of blockchain technology, as well as a thoughtful analysis of the situation with the development of projects and the state of affairs in their teams will give you all the necessary tools for effective earnings on altcoins.Read more: Volatility: types, how to track and how to useAltcoins: list of top coinsList of altcoins from the TOP 20:Ethereum is the TOP 2 cryptocurrency by capitalization after bitcoin, the leading ecosystem for launching smart contracts and dApps;Binance Coin is a native cryptocurrency of the exchange of the same name;Cardano is the leading cryptocurrency for building blockchain 3.0, an ecosystem for launching smart contracts;XRP is a means of payment aimed at application in the banking sector;Dogecoin is a meme-cryptocurrency, the main purpose is a means of payment, supported by Elon Musk;Polkadot is a technology aimed at creating "bridges" between different blockchains;Uniswap is the most famous decentralized cryptocurrency exchange (DEX);Bitcoin Cash - payment method, a fork of bitcoin;Litecoin - payment method, a fork of bitcoin;Solana is a scalable blockchain with high throughput for running dApps;Chainlink is a network of oracles that allows you to upload any information to the blockchain;Wrapped Bitcoin - ERC-20 token secured by bitcoin;Polygon - a network for scaling the Ethereum blockchain;THETA is a streaming platform that works on the basis of blockchain technology;Ethereum Classic is a coin that appeared as a result of the Ethereum hard fork;Stellar is a fork of the XRP cryptocurrency.StablecoinsStablecoin is another altcoin (alternative cryptocurrency) created to solve the main problem of modern digital assets — high volatility and vulnerability to pumps and dumps on crypto exchanges.The cost of a stablecoin is usually tied either to one specific fiat currency or to their basket.Precious metals, such as gold or palladium, can also act as a stabilization fund that ensures the stability of the price of a stablecoin.Stable coins make it possible to save investors ' funds during high volatility in the cryptocurrency market or translate the results of activities into more understandable units of value, in the form of a digital version of the US dollar.The most popular stablecoins (according to the CoinMarketCap rating):Tether;USD Coin;Binance USD;Dai.Tether (USDT)The most popular stablecoin with the largest capitalization on the market. It was launched by the vice president of Starbucks in 2014. It is launched on several blockchains, including Tron, Ethereum, Solana and others. USD Coin (USDC)An example of a pronounced stable cryptocurrency with its price pegged to the US dollar. This stablecoin is managed by two of the largest companies in the crypto industry — Coinbase and Circle and is an ERC-20 token, using the Ethereum blockchain as the basis.Binance USD (BUSD)A native stablecoin on the exchange of the same name, launched on the Binance Chain blockchain. It is one of the top coins in its segment, thanks to trading without commissions on Binance.TrueUSD (TUSD)Another stablecoin, also pegged to the value of the US dollar. The developer of this altcoin is the TrustToken company, which positions this coin as an alternative to the scandalous Tether token (USDT) with its extremely controversial situation with a failed audit.Gemini Dollar (GUSD)The brightest representative among the stablecoins, a token from the famous Winklevoss twins. This stablecoin is approved by the NYDFS itself, known for its extremely tough position on issues related to cryptocurrencies, which indicates the impeccable reputation of the project.JPM Coin (JPM)Altcoin from the giant of the financial world JP Morgan, the largest US bank. This cryptocurrency is in fact an internal token of a closed blockchain and is used exclusively within JP Morgan to work with large institutional clients of the company.Diem (formerly Libra)The sensational cryptocurrency project from Facebook. Altcoin was supposed to be provided with a whole basket of assets made of currencies and precious metals and provide access to an instant payment system, but at the moment it has met fierce resistance from financial regulators and governments around the world and is now winning back its right to exist.What will happen next with this altcoin is still unclear, it may be banned.DAIThe first decentralized stablecoin using the Ethereum blockchain. It is more open compared to other stablecoins and its issue does not cause any questions from market experts.Altcoins, like bitcoin, provide all the possibilities of blockchain technology, while the user can find and use altcoins for almost any task or orientation, without making compromises.Using stablecoins, you will avoid volatility, the main scourge of this industry, and using anonymous cryptocurrencies, you will be able to keep assets secret from unnecessary attention from third parties.In the case of investments with a high level of risk, altcoins will provide you with much more interesting opportunities, and in the case of earnings, competition between individual altcoins will play into the hands of both you and the entire cryptocurrency market.Read more:What are AltcoinsAltcoins for ...
Bitcoin, Ehtereum and XRP forecast for today, October 5, 2021This is a good signal in favor of further growth, as it opens up the prospect of reaching the psychological mark of $50,000. On large volumes, another wave of growth may begin. In this case, traders can buy up to $51,000 and above.The capitalization of the cryptocurrency market by the end of Monday amounted to 2.16 trillion US dollars against 2.13 on Friday. This means that money has entered the market, which means long positions.Recall that at the end of last week, the main cryptocurrency strengthened by about $3,000, and was trading around $48,000 - $49,000. In general, Bitcoin gained about 10% during trading Friday, and almost 15% during the week. This is the strongest growth since August. It is clear that market participants have shown an appetite for risk against the background of good news. Fed Chairman Jerome Powell said last week that he was not going to ban cryptocurrencies. This is a serious statement that practically cemented the prospects for further development of the American cryptocurrency market share.In our forecast, first of all, we start from the publication of important macro statistics of the USA and the Eurozone. Global market signals can affect the trading of the most capitalized cryptocurrencies.At the European session, attention will be on the index of business activity in the Eurozone services sector for September. The current value is better than the forecast may increase optimism in the European session.The business activity index (PMI) in the US services sector for September will be released at the US session. A little later, the ISM Purchasing managers' index for the non-manufacturing sector of the United States will be published last month. Good data will increase long positions on the US dollar.Recall that if macro data from the United States is better than the forecast during the week, then the dollar may strengthen and the cryptocurrency market weaken. Cryptocurrencies are very volatile and can correlate with the foreign exchange market if there is an increase in trading ...
Bitcoin, Ehtereum and XRP forecast for today, September 30, 2021The price of bitcoin has dropped to around $4,1200. Ethereum reached the level of 2800, and the price of XRP slightly strengthened to the price value of 92 cents. The total capitalization of the digital currency market was 1.83 trillion dollars.The Ethereum 2.0 network is waiting for the first update since the launch of the network in December last year. The Altair update is scheduled for October 27. It is planned that it will simplify control over the state of the central chain, solve some problems with incentives for validators and set penalty parameters for node inactivity and other violations to ensure the economic stability of Ethereum 2.0. Altair will also allow testing the update mechanism in the main network before more serious changes, including before merging with the existing network on the Proof-of-Work consensus mechanism. After the update, in December, the existing Ethereum network is waiting for another deactivation of the complexity bomb. The mechanism will help stimulate the transition to the updated blockchain by rapidly increasing the complexity of mining, but Ethereum 2.0 is not yet ready for a full-scale release.Switzerland continues to follow the path of adopting cryptocurrencies. The country's financial regulator has for the first time approved the launch of a cryptocurrency fund on an index consisting of ten crypto assets. The fund was launched by the Swiss asset manager Crypto Finance and a large investment management firm. The custodian is SEBA Bank, which received a license to store digital assets this week. FINMA stated that the new fund is intended only for qualified investors. The purpose of the index is to reliably assess the dynamics of the largest liquid cryptocurrencies and tokens and provide an investment benchmark for this asset class. Recall that in February FINMA began to tighten cryptocurrency regulation. In accordance with the new rules, users of digital currencies will be required to undergo identification when performing transactions with crypto assets worth more than $1,000.The forecast assumes a decline in bitcoin to the levels of $41,000, $40,500 and $40,000. Ethereum will fall to the supports of 2780, 2750 and 2700 dollars, and XRP will fall to the levels of 90, 87 and 85 ...
The price of bitcoin has fallen to the support of $41600. Ethereum declined to $2,850, and XRP reached the level of 91 cents. The total capitalization of the crypto assets market amounted to 1.83 trillion dollars.Bitcoin again lost all the gains of the weekend, along with a decline in stock indices and gold, while the yield of US government bonds increased and the dollar strengthened. All major US stock indexes, including the S&P 500, Dow Jones and Nasdaq, have remained in the red zone over the past month. Gold is declining by 5% relative to the high of the beginning of September. At the same time, the yield of ten-year US government bonds exceeded 1.5% for the first time since June. The dollar index updates monthly records. Analysts note that about 87% of bitcoin's performance is due to periods of growth in the yield of ten-year US bonds.Meanwhile, more and more crypto companies refuse to work with clients from China. At least three more cryptocurrency trading platforms have announced their withdrawal from the Chinese market. In addition, two of the most famous sites for tracking cryptocurrency assets, CoinGecko and CoinMarketCap, were blocked. At the moment, both resources are not available on 100% of the territory of China. The reasons for blocking are not specified. Users began experiencing difficulties accessing the sites on Tuesday morning local time. Chinese e-commerce giant Alibaba has announced that it will stop selling cryptocurrency mining equipment from October 8. Also, the F2Pool mining pool, founded in 2013, begins to turn off Chinese computing power. It is currently the largest pool in the world by bitcoin mining volume with a share above 18%. Earlier, the largest ethereum pool SparkPool announced the complete cessation of activities, including for foreign miners. The restrictions are being introduced against the background of a new statement by the Chinese authorities on combating illegal activities in the cryptocurrency space.The forecast assumes a further decline in the price of bitcoin to the levels of 41300, 41000 and 40,000 dollars. Ethereum will decline to the levels of 2800, 2750 and 2700 dollars, and XRP - to the price values of 90, 88 and 85 ...
Bitcoin, Ehtereum and XRP forecast for today, September 28, 2021The price of bitcoin fell to the level of $42900. Ethereum has fallen to the support level of 2900, and XRP is trading at 93 cents. The total capitalization of the digital currency market was $1.89 trillion.The cryptocurrency market is still under pressure due to the strict restrictions of the Chinese government. Two of the largest mining pools in the country are forced to take drastic measures due to bans. Manufacturers of ASIC miners and pools turned out to be the last large enterprises in China involved in the cryptocurrency industry. And a complete ban on operations with cryptocurrencies for business dealt them the last serious blow.The largest bitcoin mining pool, F2Pool, refused service to miners from China. And Sparkpool, the second largest Ethereum mining pool, is forced to go even further and completely stop its activities. After blocking users from China last Friday, the Sparkpool administration continued to disable miners and plans to suspend the work of all registered users of the mining pool on September 30, both in China and abroad.The first algorithmic Djed stablecoin will be launched on the Cardano network. The developers said that the cost of the Djed token will be provided by smart contracts. The algorithms will operate with the stocks of the base coins so that the price of Djed is about a dollar. It is expected that the demand for stablecoin will be huge, as it can be used to pay commissions on the Cardano network. In addition, the token is being developed with an eye to using decentralized finance in projects. Over the past few years, blockchain users have been using stable cryptocurrencies for everyday operations, as they provide the possibility of fast and unhindered movement of funds, regardless of the location of the sender and recipient. The developers believe that the appearance of Djed in the Cardano network will significantly improve the calculation of transactions on the platform and increase the demand for the blockchain token.The forecast assumes a decline in the price of bitcoin to the levels of 42700, 42300 and 42000 dollars. Ethereum will decline to the levels of 2850, 2800 and 2700 dollars, and XRP - to the price values of 90, 87 and 85 ...
Last week, the price of bitcoin fell to the level of $43,300. Ethereum fell to the support of $3,000, and XRP - to the mark of 95 cents. The total capitalization of the cryptocurrency market was $1.9 trillion.The price of bitcoin recovered sharply on Sunday, although it recorded an overall weekly drop. On Friday, when it became known about the new repressions of the Chinese leadership against cryptocurrencies, bitcoin fell by 10%, but then played back half of the fall. After yesterday's announcement of the Huobi exchange about the upcoming shutdown of all Chinese users, the cryptocurrency updated local lows around $40,750. From this level, in less than two hours, it managed to rise by 7% and again be above $43,000.The outgoing week turned out to be volatile for bitcoin and the entire digital asset market. On Monday, even before the announcement of the position of the People's Bank of China, the main cryptocurrency fell by almost 8% along with stock indices. The movement is associated with fears of the debt crisis of the Chinese developer Evergrande. According to the Bybt service, the volume of liquidations on the cryptocurrency market has exceeded $300 million in the last 12 hours alone.A new report by JP Morgan bank concludes that institutional investors demonstrate a confident preference in favor of Ethereum over bitcoin. This conclusion was made by analysts based on a comparison of the futures prices of the corresponding cryptocurrencies with their spot markets. In relation to bitcoin, they write that due to the correction this month, the futures price again fell below the spot price, whereas in August it rose above it. According to JP Morgan, this ratio is an obstacle for bitcoin and a reflection of weak demand from institutional investors who tend to use regulated futures contracts of the Chicago Mercantile Exchange to access bitcoin.As analysts explain, in normal conditions, when the demand for bitcoin futures is not so low, contracts are traded above the market. Such an overpayment occurs due to the relatively low risk of gaining access to bitcoin using futures. It is usually quite high and exceeds 5% in annual terms. Nevertheless, during periods of reduced demand, futures begin to trade at a discount relative to the spot market. This was the case, for example, from May to July, and it is happening now. Ethereum futures, in turn, retain the premium, which increased to 7% in September. The divergence of the dynamics of demand for derivatives of the two cryptocurrencies has been observed since August. The price of bitcoin has fallen by 10% over the past month, while the price of Ethereum has only fallen by 5%. The authors of the report conclude that this indicates a much healthier demand for Ethereum compared to bitcoin from institutional investors. This is not the first time that analysts of a large bank have expressed such a point of view. In May, Goldman Sachs released a report on the topic of cryptocurrencies, in which it described bitcoin as a low-functioning and wasting electricity tool and at the same time praised Ethereum, calling it the future of cryptocurrencies.The forecast for the coming week expects a further decline in the price of bitcoin to the levels of 43000, 42500, 42000, 41000 and 40,000 dollars. Ethereum will reach the supports of 2970, 2950, 2900, 2850 and 2800 dollars, and XRP will fall to the levels of 92, 90, 88, 85 and 80 ...
Bitcoin, Ehtereum and XRP forecast for today, September 23, 2021The price of bitcoin has rolled back to the level of $43,300. Ethereum rose to the level of $3,100, and XRP reached the value of 99 cents. The total capitalization of the digital currency market was $1.95 trillion.Despite the significant price adjustment, the complexity of bitcoin mining is growing rapidly. But the current difficulty is still far from the record of May 2021. More and more miners are joining the work after the forced downtime associated with the transportation of equipment from unfriendly China to the United States, Kazakhstan and other countries. Against the background of the restoration of capacities, the complexity of cryptocurrency mining is also growing. In the bitcoin network, there was another adjustment of the complexity of mining with an increase of 3.2%. This is the fifth consecutive positive recalculation of the complexity since mid-July. As a result, the complexity increased by 31% during this period. The increase in the complexity of bitcoin mining was preceded by a series of four drops in the complexity of the cryptocurrency.The expiration of bitcoin contracts with a total volume of $3.15 billion will occur on the options market on Friday. Analysts expect that this event will not have a significant impact on bitcoin, the market of which is now primarily guided by macroeconomic factors. The vast majority of purchase contracts for the upcoming expiration have execution prices higher than the current one, that is, if the current exchange rate is maintained, their holders will not receive any payments. At the same time, most sales contracts have strikes below current prices, that is, these contracts are also subject to settlement outside of money. Thus, most of the options on both sides will bring losses to their buyers if bitcoin does not make a sharp movement before Friday.The forecast assumes a decline in the price of bitcoin to the levels of 43000, 42500 and 42000 dollars. Ethereum will decline to the levels of $3050, $3000 and $2900. XRP will reach 97, 95 and 90 ...
Bitcoin, Ehtereum and XRP forecast for today, September 22, 2021Bitcoin has fallen to the level of $42200. The price of Ethereum fell to the level of $2900, and XRP reached a price value of 90 cents. The total capitalization of the digital currency market fell to $1.86 trillion.At night, bitcoin fell to the level of $40,200 due to the panic around the Chinese developer China Evergrande, which is on the verge of default. The company's debt problems, which are likely to lead to bankruptcy, have caused panic among investors. Many experts assume that not only China, but the entire world economy will suffer from this. Increasingly, analogies are being drawn between the situation in the Chinese real estate market and the crisis of 2008, which began with the collapse of mortgage companies. The consequences of a possible bankruptcy of Evergrande can cause a huge blow to all high-risk assets, including crypto assets. According to JPMorgan analysts, the fair price of Ethereum based on network activity indicators is $1,500. The network of the second largest cryptocurrency by capitalization is less attractive than its price suggests. Analysts note the growing competition from Solana, Cardano and other blockchains. An alternative opinion suggests that Ethereum will remain the dominant decentralized financial blockchain. Most developers of smart contracts are building an ecosystem based on Ethereum, despite the announced partnerships in other networks.The forecast expects a further decline in the price of bitcoin to the levels of 42000, 41500 and 41000 dollars. Ethereum will decline to the levels of 2850, 2800 and 2700 dollars, and XRP - to the price values of 88, 85 and 80 ...
Cryptocurrency forecast for today, September 21, 2021The price of bitcoin has fallen to the level of $43600. Ethereum fell to the $3,000 mark, and the price of XRP reached 92 cents. The total capitalization of the digital currency market fell to $1.94 trillion.The largest cryptocurrencies are losing 10% of their value or more this Monday. Bitcoin set an intraday low below $42,500 and thus surpassed the levels of the collapse on September 7 and equaled the values of the first half of August. Yesterday's decline in the crypto market is primarily associated with macroeconomic factors. On Friday, the S&P 500 index closed down 1% below the 50-day moving average. At the same time, the 30-day correlation of bitcoin with the S&P 500 was at one of the highest levels since last October. The financial markets continue to discuss the debt crisis of the Chinese company Evergrande. Meanwhile, its consequences are already beginning to be observed in neighboring companies from the real estate and banking industry. According to analysts, the potential collapse of Evergrande will cause far-reaching financial consequences. The developers of Solana have published a preliminary report on the causes of a large-scale failure. The incident occurred on September 14, new blocks were not released for 17 hours. As the actual cause of the failure, the developers called a DDoS attack. According to them, the overflowing memory led to the failure of many validators, slowing down and, eventually, stopping the network. Immediately after the restart on September 15, the developers explained that transactions were overflowing the processing queue, and the lack of prioritization of critical messages led to a network fork.The forecast assumes a further decline of bitcoin to the levels of 43300, 43000 and 42000 dollars. Ethereum will reach the levels of 2950, 2900 and 2800 dollars, and XRP - supports 90, 88 and 85 ...
Brief description of Huobi GlobalFounded in 2013, the Huobi Global Exchange is a centralized platform. According to the Coingecko resource, the exchange has an average (8) reliability rating. As of September 2021, 0 cryptocurrencies are traded on the exchange, the most active trading pair is ETH/USDT. The maximum trading volume for the last 30 days was reached on August 7 in the amount of 161,756 BTC.Verification: OptionalTelegram /huobiglobalofficialFaceBook /huobiglobalofficialTwitter /HuobiGlobalDetailed review of the Huobi Global ExchangeHuobi is a cryptocurrency exchange founded in China in 2013. It is registered in the Seychelles. Link to the official website of the exchange — Huobi.com. It provides opportunities for spot, margin, futures (perpetual contracts, options) and OTC trading. Confidently enters the top-3 in terms of trading volume (turnover-over two billion dollars in 24 hours). It exists both in the web version, and in the form of desktop and mobile applications.Read more: What are futures: types, features, advantages and risksWe offer a detailed overview of the functionality of the Huobi exchange, its advantages and disadvantages.ContentGeneral descriptionTeamFunctionalHow to trade on HuobiVerificationHow to trade on the Huobi exchangeMoney managementHT Token - description of the cryptocurrency from HuobiHuobi WalletHuobi Input and OutputCommissionsSafetyTech. Huobi supportComparison with other top exchangesAPI HuobiHuobi ReviewsAdvantages and disadvantagesConclusionGeneral descriptionRegistration on the platform is available to users from more than 130 countries of the world - wherever transactions with cryptocurrencies are not prohibited by law. Huobi is a multilingual platform that supports such languages as Chinese, English, French; German, Turkish, Portuguese, Spanish.TeamThe founder and CEO of the Huobi Group is Leon Lee. Previously, he worked as a computer engineer at Oracle. He graduated from the Department of Automation of Tsinghua University and became a successful entrepreneur in the field of financial technologies.Other team members:The Chief Operating Officer (COO) is Robin Zhu. He has experience in the field of corporate governance and practical data analysis. He also worked at Oracle at one time. Initially, he was deeply interested in the blockchain industry and Big Data.The head of the Security Department (CSO) is Simon Wu. He is responsible for risk management, previously worked in international consulting firms and government agencies, dealing with business security and management issues.The technical director is Roy Zhu. He was a technical expert at Alibaba, a partner and senior vice president of Jinshan Cloud, and also held a management position at Taobao. Is responsible for the research and development of new functionality.FunctionalHow to trade on HuobiThe Huobi exchange is designed to manage cryptocurrency assets in the following ways:Spot trading. Trading with instant settlement, when funds are transferred between the buyer and the seller here and now, based on the current market value of the asset.Futures trading. Trading contracts containing information about the value of the currency and the time of sale. By entering into such a contract, the buyer and the seller undertake to transfer funds at a specific rate and at a specific time. An effective tool for hedging risks.Margin trading. Trading with leverage — the user takes a certain amount of credit funds secured by the assets available to him and thereby can use a larger amount in trading than he has. This increases the potential profit, but also the risks. The available leverage level is individual for each currency.OTC. A P2P exchange platform that connects fiat money and digital assets. It is intended for institutional investors who make large transactions and want to do it completely in the legal field.The index is HB10. It includes 10 top cryptocurrencies, works in conjunction with an investment product that helps to invest funds in the entire basket of promising assets at once.Fiat. Quick purchase or sale of cryptocurrency for fiat money. Supported payment methods: VISA/Mastercard bank cards, Western Union, e-wallets.Huobi Global currently works with 286 coins (770 trading pairs).Read more: P2P: where peer-to-peer networks are usedVerificationTo start trading, you do not need to verify your identity, but you can pass it to expand the withdrawal limits and get access to additional functions. Go to the "Verification" section and enter the necessary information — passport or driver's license number, first name, last name, upload a scanned passport in JPG or PNG.Verification on the exchange is not required, but it gives additional advantages when using the platformThe information is manually confirmed by the exchange's employees, usually it takes no more than two days.How to trade on the Huobi exchangeLet's look at how to trade cryptocurrencies and tokens using the Huobi platform.In the central part of the screen, under the chart, there is a section for creating buy or sell orders. Huobi supports the following main types of orders:Market. The user specifies only the desired amount of cryptocurrency. The transaction is made instantly and at the market price that is at that moment.Limit. The user specifies both the amount and the cost of the cryptocurrency. As soon as a counteroffer appears, the order is automatically executed. All created limit orders are located in the so-called glass (or orderbook).Stop limit. A subspecies of a limit order. While a regular limit order is executed when the specified price is reached or better, the stop limit is executed at the specified price or worse.Trigger-an order (by limit or by market).Advanced tool-creates an order that is executed automatically immediately after the execution of another order. In the right part of the trading terminal interface, there is a history of all completed orders — date, volume and price. And at the very bottom — information about active and completed transactions of a particular trader.Money managementHuobi Global includes a number of opportunities for managing funds for investors. After entering the exchange, the following tools are available:Blocking and mining HT. Holders of the exchange token (HT) can participate in the airdrop. To do this, they need to block at least 100 HT on their account for a period of 7 to 90 days. After the expiration of the period, a bonus is awarded in the form of a certain amount of Huobi Pool Token (HPT).Landing page. Investment of USDT or BTC at interest for 10, 20, 30 days. The interest rate can be entered manually (from 0.01 to 0.09% per day) or set the optimal one. Other users then select suitable options from the entire pool of available offers.Storage of assets. Professional asset storage services for companies and institutions. Clearing and detailed reports are included in the price.Asset management. A digital asset service platform for professional users. There is a choice of three investment strategies with different levels of risk and profitability.Savings (available only after verification). A deposit account with an interest income. The interest is periodically adjusted, at the moment it is 7.28% per annum for USDT and 3.5% for BTC.A new Pool Savings section was also recently opened. This is a tool for working with DeFi tokens. It includes profitable farming of new and promising tokens.Read more: What is an airdrop of cryptocurrencies - is the game worth the candleHT Token - description of the cryptocurrency from HuobiHT is a token, a cryptocurrency officially launched by the Huobi exchange in 2018. Functional purpose and why it is needed:Discounts from 10% to 95.15% on trading fees (depending on the number of tokens held).Participation in events and events held by Huobi.Farming of the HPT token.VIP status.Use as a guaranteed asset with a cross-margin.Deflationary burning scheme to maintain the value of the asset:Asset allocation schemeToday, there are HT holders in more than 180 countries around the world. It is traded, in addition to Huobi, on the Bibox, Bitforex, Coinsbit, HitBTC, MXC, etc. exchanges.Huobi WalletThe universal multi-currency wallet from Huobi Global can be downloaded from the links:For Android - https://play.google.com/store/apps/details?id=com.huobionchainwallet.gpFor iOS - https://itunes.apple.com/cn/app/id1433883012?mt=8The application supports most major cryptocurrencies (BTC,ETH, XRP, LTC, BCH, etc.), stablecoins (USDT, USDC, TUSD, DAI, PAX), most tokens on the Ethereum, Ontology, TRON, EOS blockchains.The main features of the crypto wallet include independent management of private keys, personal control over assets, data encryption, support for multi-signature and the ability to organize joint asset management. The simple interface allows you to perform operations in one click.Read more: What are Stablecoins and how do they differ from other cryptocurrenciesHuobi Input and OutputTo deposit funds to the Huobi Global exchange, you need to go to the Currency Account section, select the cryptocurrency of interest, for example, Bitcoin, and click Deposit.Copy the address and transfer the cryptocurrency to it from an external wallet (you can use a QR code for a quick transfer from a mobile application).The funds are credited to the exchange account after one confirmation by the miners, and after two confirmations they will be available for withdrawal.The minimum deposit amount is 0.001 BTC. The deposit address does not change every time, but only sometimes, the exchange notifies about this by email.To withdraw cryptocurrency, you need to go to the same section, but this time select the Withdraw button.Specify the address to which the coins should be transferred, and the required amount. The commission is indicated in the same window and covers the transaction costs, providing a quick transfer.The minimum withdrawal amount is also 0.001 BTC.Read more When Bitcoin appeared: telling the story of BTCCommissionsType of operation Commission feeSpot trading 0.2% maker and 0.2% takerMargin interest 0.098%OTC trades 0.1-0.2% maker (depending on the currency), 0% takerContract trades 0.02% maker, 0.04% takerEntry without commissionThe withdrawal is individual for each coin, indicated at the time of withdrawal (for example, for BTC — 0.0005 BTC).Read more: What is OTC and what are its featuresThe table shows the standard indicators. Holders of HT tokens can reduce them. With a deduction, the fees look like this:SafetyThe Huobi exchange uses cold wallets, secure connection and data encryption to protect user funds. In addition, the user can independently increase the security level of the account if he performs the following actions:It will enable two-factor authentication — a simple and effective way to confirm login using the Google Authenticator application.It will link the phone number and confirm the email address.Associates accounts in other networks (Google, Facebook, Apple) with the Huobi account.It will set a complex password and an anti-phishing code.Read more: Network security. 2FA - two-factor identification methodsTech. Huobi supportYou can contact Huobi technical support via an online chat on the website. Other contacts and social networks of the project:Telegram https://t.me/huobiglobalofficialFacebook https://www.facebook.com/huobiglobalofficialTwitter https://twitter.com/HuobiGlobalBlog on Medium https://medium.com/@huobiglobalInstargam https://www.instagram.com/huobiglobalofficial/YouTube https://www.youtube.com/HuobiGlobalAPI HuobiThe Huobi Exchange provides documentation for developers (API) for free. It can be found at https://huobiapi.github.io/docs/spot/v1/en/#change-logIn the top menu, you can switch to another type of trading (spot, futures, options, margin swaps). Information on all categories is constantly updated. The developer can subscribe to email notifications to keep everyone up to date with the latest changes.Huobi ReviewsThe site has both positive and negative reviews, there are about the same number of them. Users complain about high commissions, problems with the NEM cryptocurrency, as well as insufficient functionality — despite the fact that the platform keeps up with the times and regularly introduces new features, it is not yet possible to work only with it without resorting to the help of other large trading platforms.Nevertheless, trading volumes show that most users consider the platform to be the best option for exchanging certain currency pairs (the most popular is BTC/USDT).Advantages and disadvantagesAdvantages:The exchange is in the top in terms of trading volume and liquidityOwn functional tokenDeveloping functionalityPositive feedbackOptional verificationA large selection of trading pairsMobile and desktop walletsReferral programDisadvantages:Some functionality has been cut for popular cryptocurrencies. For example Bitcoin and USDTConclusionThe Huobi cryptocurrency exchange is actively developing and tracking current trends, such as earnings on DeFi tokens. A strong team, the introduction of new options, adequate commissions-all this speaks in favor of the site and adds respectability to it. Now there is such a time in the cryptosphere that it is impossible to keep up with trends, otherwise the project will instantly lose part of the market.Read more: What is decentralized finance ...
We offer a forecast of the Ripple exchange rate for the last six months of this year.Ripple is an interesting, but rather volatile cryptocurrency ecosystem, depending on a number of market and third-party factors. The most relevant is the battle with the financial regulator, where, despite the pessimism of observers, the crypto system wins against the state. We will tell you what experts think about the prospects of its ecosystem, and offer a forecast of the Ripple exchange rate for 2021.What factors determine the forecast of the Ripple exchange rateAccording to the analytical group StormGain, in December 2020, the SEC (the US Securities and Exchange Commission) required Ripple to provide financial information about the accounts of the company and its founders for the past eight years.This followed a claim about the illegal sale of a cryptocurrency worth a total of $1.3 billion, since XRP must be a security to attract investment.Ripple CEO Brad Garlinghouse and co-founder Chris Larsen called the regulator's requirements "inappropriate abuse of authority" and "invasion of privacy", sending a counterclaim to the court. "Because of the regulator's claims, Ripple, which was once in the top 3 by capitalization, missed the autumn 2020 rally. But now he has grounds for returning his positions," StormGain analysts note.The court granted the request of the Ripple executives to reject the SEC's request for detailed financial information. This is the second victory over the regulator, since last week the court confirmed the company's right to study the internal official correspondence of the SEC. Ripple is trying to find out on what basis the regulator considers the cryptocurrency a security."In the absence of proper grounds, the regulator's claim will be insignificant. Two court cases won against the SEC increase the likelihood of this event. The same is believed by investors who are actively buying XRP for the second week. During this time, the price has tripled, and the number of new addresses has almost reached a six - month maximum," analysts share information.April turned out to be a month of won court cases for Ripple. In addition to the debate with the SEC, the company emerged victorious from a legal dispute with Tetragon Financial Group. As an investment attraction partner for Ripple, Tetragon demanded a share repurchase. However, this scenario is prescribed in the contract in case XRP is recognized as a security. Since the cryptocurrency did not receive such a status, the court rejected the claim. Now Tetragon must pay legal costs, the amount of which has reached $3.4 million."There is still no final decision on the status of XRP, respectively, the key risks remain," analysts doubt. Nevertheless, they are confident that the three court cases won in April significantly fueled interest in this cryptocurrency and positively influenced Ripple's forecast.Ripple Forecast: the main advantagesThe battle with the state is just an episode in the history of cryptocurrency, yes, this example is vivid and indicative, but there are a lot of other factors by which you can evaluate the advantages and disadvantages of this cryptosystem. To begin with, XRP is a formally unrelated cryptocurrency to Ripple, which the RippleNet network uses as an intermediary token for some transactions.Among the advantages of the currency, analysts of the Exmo exchange call the low cost of transactions. When processing each transaction in the RippleNet network, the system writes off 0.00001 XRP from the initiator. This is not a commission that goes in favor of the validator, the owner of the system or someone else. "The platform simply writes off these coins from the sender's account, and they are destroyed, which is necessary to protect transactions from spam and reduce the risks of manipulating the cryptocurrency exchange rate," experts note.The next advantage is the lack of mining, which also has a positive effect on Ripple's forecast for 2021. The cryptocurrency uses an original consensus algorithm, which implies the creation of a small pool of trusted nodes for validating transactions. At the same time, each participant chooses which nodes he will entrust the verification of his transactions (as in Stellar).In addition, the cryptosystem has a relatively high throughput. Theoretically, the network is capable of processing up to 1500 operations per second. For comparison, Bitcoin has 7 TPS, Ether-20 TPS, Visa-24000 TPS. Analysts also emphasize the high speed of transactions — they are confirmed in four seconds in the XRP Ledger.Ripple Forecast: the main disadvantagesHowever, there is also enough criticism about this ecosystem. The main critic of the Ripple startup, IT analyst and Forbes expert Jason Bloomberg, considers this cryptocurrency network dubious and even accuses its creators of fraud. Here are the most reasonable arguments that negatively affect the long-term forecast of Ripple.According to Exmo analysts with reference to Bloomberg, Ripple created an open source XRP Ledger "community" to hide the fact that they had issued hundreds of millions of XRP, most of which they kept for themselves. According to the expert, Ripple is strongly fenced off from the management of XRP, although the company has created this community and manages it.Moreover, the startup claims that their product solves the problem of liquidity in cross-currency banking operations through the mediation of XRP. However, as a critic of the system states, " in order for XRP to work as an intermediary, banks must maintain sufficient XRP reserves that will allow them to respond to transaction requests."This approach, according to Bloomberg, cannot work for two reasons. Firstly, banks and other network participants do not want to hold capital in XRP due to the high volatility of the coin. A currency whose price has fallen by 80% today, and will grow by 100% in a month, simply cannot be a reliable intermediary.Read more: Volatility: types, how to track and how to useSecondly, reserving funds in XRP does not solve the main problem of money transfers from countries with more stable national currencies to countries with less stable currencies, since such transactions usually go only in one direction.However, as practice has shown, the Ripple technology simply does not work as its creators tell about it, which is why most of the statements about integration with large banks and other payment services eventually led to nothing.In particular, Ripple was tested by American Express, Santander, Western Union, and they refused it, because the transfers were not instant, but took up to two days, and the transaction price was also higher than the stated one.Is it worth buying RippleThe bullish growth of 2020, which began by the end of the year, helped the value of the asset to rise. The Ripple exchange rate reached $0.8 before ending the year at $0.66. The beginning of 2021 was supposed to be a continuation of the growth in the value of XRP, but this did not happen due to the SEC's announcement of a lawsuit.Read more: How to determine the beginning of the movement of the "bull" market?After the announcement, some exchanges excluded XRP from their platform. Many of those who held the token also sold in a panic. This led to the fact that the Ripple rate fell to $0.166. However, it rose again, rising to $0.755.In 2021, the Ripple exchange rate opened at $0.219. In January, the lowest price of XRP was fixed at $0.215, and the highest price was $0.499. XRP was trading at $0.415 in early March, then reached a low of $0.413, reaching a high of $0.602.At the beginning of May, the XRP rate was at $1.60. In the same month, the lowest price was recorded at $0.652, and the highest - $1.76. According to Moody's research, 2021 will be a good year for blockchain with a huge increase in standards, which will directly affect the price of Ripple.Ripple already has development plans for 2021. Considering how past events or have led to an increase in the value of XRP, the currency can reach $2. This will happen if the actions of Ripple technology lead to partnerships with a large number of financial organizations.Ripple's forecast for 2021The maximum projected price for the year is $2, although it may also fall, since the minimum price forecast is $0.1, if the SEC lawsuit is not settled in favor of Ripple.According to the experts of Investing Haven, the price of the token should have reached $20. At first, they assumed that the coin would reach the coveted maximum in 2019, later they shifted their forecast first to 2020, and then to 2021.The trader of Credible Crypto believes that the bullish trend will give the coin a powerful impetus and Ripple will grow by more than 1000%. As a result, by the end of 2021, the cryptocurrency exchange rate will reach $25-30.According to CoinSwitch's forecast, XRP can reach the $2 mark in 2021, trade at about $3 in 2023 and grow to $4.52 in 2025, thanks to new partnerships and new technologies.WalletInvestor is quite pessimistic about the prospects of Ripple and does not recommend it as an investment. Although, according to analysts, the asset will grow above $1 in 2021. It is worth noting that last year's forecast of the company was not fulfilled: they predicted a drop in the price to $0.026 in November.According to experts of the TradingBeasts platform, in December 2021, the Ripple exchange rate is projected at an average of $0.6639923. The expected maximum price is $0.8299904, the minimum price is $0.5643935.From the point of view of fundamental analysis,XRP is clearly undervalued. Due to its features, it is difficult to compare it with other cryptocurrencies.But the coin has a real application – XRP has universal liquidity, is scalable and is cheaper than its competitors. In addition, despite the recent growth, it is still far from its historical maximum of $3.3. Since this asset has really good prospects, we can expect it to grow in the ...
Today, 80% of national financial regulators are interested in digital currencies of central banks (Central Bank Digital Currency, CBDC), and 40% have already started testing CBDC. According to forecasts, from three to five countries of the world will fully implement CBDC by 2030.What is CBDC?The digital currency of the Central Bank (Central Bank Digital Currency) is a digital form of fiat money (the value does not come from its own value and the guarantee of exchange for gold, but from a state order), the issuer of which is the national central banks. In theory, CBDC can be used for all types of payments using various technologies.CBDC is created and fully controlled by the Central Bank of the country and is a legal tender, unlike digital currencies, virtual currencies and cryptocurrencies (decentralized Bitcoin and Ethereum and centralized Ripple and Cardano).CBDCs are usually backed by national currencies in a 1:1 ratio and can be exchanged without restrictions for cash or non-cash funds. That is, one e-euro, one digital yuan or one digital dollar will be equal to one euro, one yuan or one dollar.Read more: Fiat moneyCBDC ModelsWhen we talk about CBDC, we usually mean a centralized model, according to which the issuer of the digital currency is the central bank. He is the owner and operator of a single centralized register with CBDC, controls and sees all transactions with the digital currency of the central bank. Validation of an operation (the decision to include any operation in the register) is made solely by the central bank. Repayment and settlements are also guaranteed by the central bank.Under this scheme, other non-bank financial institutions and banks are agents for the settlement and distribution of CBDC. They provide customers with access to the central bank's unified platform through their resources and offer other CBDC services (for example, they create applications for mobile devices that provide convenient analysis and viewing of transactions).At the same time, there is also a decentralized model where CBDC can be issued by banks and non-bank financial institutions under the control of the central bank. This model assumes that the accounting of wallets and CBDC operations is conducted in a decentralized manner — in the systems of each issuer. And the central bank provides the possibility of using the digital currency of one issuer in the networks of merchants and / or agents for settlements of other issuers and settlements on transactions in the CBDC between issuers. However, the decentralized model cannot be called a digital currency of the central bank in the classical sense.Why the boom in digital currencies of central banks beganThe Central Banks of the world began to analyze CBDC since the mid-2010s. Experts say that the interest in digital currencies of central banks was largely caused by bitcoin and cryptocurrency in general.The first case of successful implementation of CBDC is called the project of the central bank of Ecuador, which existed from 2014 to 2018. The system with digital currencies worked through mobile phones, and not through the blockchain. However, the program was closed due to a small level of involvement of citizens.In the second half of the 2010s, the central banks of England, Sweden and Uruguay reported on the interest of CBDC. The People's Bank of China, which has made the most progress in launching the digital yuan today, claims that it began analyzing the CBDC back in 2014-2015.However, the real boom in digital currencies of central banks arose in 2019, when large private players began to share plans to create their own crypto assets. The announcement of the Libra cryptocurrency (now Diem) from Facebook forced central banks to pay attention to the status of stablecoin (cryptocurrencies that are tied to stocks of ordinary currencies or physical goods and whose exchange rates are subject to less fluctuations than the rates of typical cryptocurrencies). Financial regulators feared that they were jeopardizing the leading role of central banks.Following the meeting of the central banks of the G7 countries with the management of the largest stablecoin projects (Libra Association, JP Morgan and Fnality International) The European Commission, the European Council and the Bank for International Settlements issued an official statement saying that stablecoins are a source of risks, so they need to be properly identified, evaluated and regulated, and until then the EU will ban the issue of stablecoins on its territory.Read more: What are Stablecoins and how do they differ from other cryptocurrenciesAt the same time, the EU leadership called on central banks to consider the possibility of issuing their digital currencies, which confirms the role of stablecoins as a kind of catalyst for the introduction of CBDC. Last year, the central banks of Sweden, Switzerland, the United Kingdom, Canada, Japan and the European Central Bank and the Bank for International Settlements created a working group to study the CBDC, which will focus on economic, technological and architectural issues.In early June, the European Central Bank (ECB), in a report on the international role of the euro, pointed to the risk of losing monetary sovereignty if tech giants and large corporations launch their own digital currencies in the absence of such currencies from regulators. At the same time, the CBDC will increase the global status of the currency in which it is denominated, in particular, if it is adopted in countries with unstable currencies, the ECB noted."We should pay attention to the risks to stability that may arise if the central bank does not offer a digital currency. One of the problems may be a situation in which domestic and international payments are dominated by foreign providers, including foreign technology giants, who will potentially offer artificial currencies in the future. This can not only threaten the stability of the financial system, but also individuals and companies that will be vulnerable to a small number of dominant suppliers with strong market power. The ability of central banks to fulfill their monetary policy mandate and the role of the lender of last resort will also be disrupted. The CBDC issue will help preserve the autonomy of domestic payment systems and the international use of currency in the digital world" - the 20th annual review of the international role of the euro from the European Central BankAnother trigger for the development of CBDC was the coronavirus pandemic, which encouraged people to give up cash because it can be a source of infection. In addition, there has long been a deep trend in the world to switch to cashless-not only because of convenience and economy (issuing, collecting cash is expensive), but also because cash feeds the shadow economy and criminal business.Read more: The European Central Bank (ECB)Who has made the most progress in launching CBDCToday, the central banks of China (DCEP or digital yuan), Sweden ("e-krona"), Canada (the "Jasper" project), Japan (digital yen, and together with the ECB the "Stella" project), as well as Uruguay (e-peso), South Africa, Ecuador, the Netherlands, Great Britain, Finland, Indonesia, Australia, New Zealand, Spain, Portugal, Poland and Korea, the Bahamas (Sand Dollar) and Brazil are experimenting with CBDC in one way or another.China has made the most progress in creating a CBDC, which has long been testing the digital yuan in six major cities and has generally issued and distributed DCEP to people in the equivalent of $39 million.Great resistance in the introduction of CBDC was demonstrated by the States, which were afraid that the digital currency of central banks (in particular, the People's Bank of China) would deprive the US dollar of its dominant status in global finance. However, in May, the head of the US Federal Reserve System, Lael Brainard, announced the growth of the Fed's interest in the CBDC and announced the release of an official document on the digital dollar in the summer of 2021.According to Bison Trails, about 80% of central banks are exploring options for using CBDC, and 40% of central banks are testing their digital currency in one way or another. The forecasts of the Dutch analytical center dGen indicate that by 2030 from three to five countries of the world will introduce CBDC. dGen also predicts that the euro will be displaced by the Chinese digital yuan project if Europe does not develop its own CBDC by 2025.Read more: How to invest in stocks and what you need to ...
The cryptocurrency market is now developing at a very fast pace, so fast that even teenagers are already in the topic of digital coins, crypto trading and free receipt of currencies through airdrop. Now digital currencies are trending, and some users earn good money on them. However, such a prevalence of this topic does not mean a high level of literacy in it. It happens that all digital coins are declared altcoins, and cryptocurrencies are called tokens. Such errors look especially awkward in the articles of the so-called "experts" and "experienced cryptocurrency traders". Let's analyze in detail the concepts of cryptocurrency and digital tokens in order to try to prevent such common mistakes. Let's consider the key characteristics of coins, the specific nuances of tokens and digital currencies.What is a cryptocurrency?Let's start with an analysis of this concept, because many began to earn on cryptocurrency, without even understanding the essence of this tool.Virtual currency is primarily understood as a unit of account with unique properties, one of which is the recording of information about the movement of digital currency on the basis of a distributed registry of a cryptographic system. In other words, all actions and information about the storage of the coin are recorded in free blocks of the blockchain or its branches-sidechains. Blocks, meanwhile, are formed by miners who earn coins on crypto farms through solo mining or conventional mining. With the help of the computing power of the devices, miners create free cells in the network database. The cells record the history of those coins that are circulated within the network space consisting of nodes (working nodes) representing users' computers.There are two main groups of cryptocurrencies – bitcoin and coins launched after bitcoin, called altcoins. Before bitcoin, there were coins that represent a separate group without a name.Altcoins are coins that are alternative to bitcoin, for example, ethereum, verge, monero, ripple and others. They are formed in the following ways:Through soft forks (the base of the slightly modified bitcoin blockchain);Through hard forks (the blockchain of bitcoin, changed greatly), which also allow you to create sidechains that give new coins additional characteristics;Through completely new blockchains, in which unique cryptocurrency parameters are created.Read more: What are AltcoinsWhat is a token?A token is another type of digital asset, completely different from a full-fledged cryptocurrency of an existing blockchain project. Only some options and involvement in virtual money combine a cryptocurrency and a token. Of course, a token is a financial instrument used by companies, project creators and users. As a rule, a token is a kind of debt obligation of the issuer to provide a service or a product. Often, inept users call a cryptocurrency a token, despite the fact that the token structure does not include a classic blockchain. The program code that forms the constructive architectonics of the token is an add-on of the blockchain block chain, borrowed from the basic virtual cryptocurrency system. In other words, the token is a cryptomonets application.At the moment, digital tokens are widely used due to the fact that there is a gradual introduction of blockchain technologies into everyday life. For example, blockchain technologies are used in logistics, healthcare, finance, and so on. Thus, tokens can be created to solve various local problems. Most often, tokens are mentioned in conjunction with a specific unfinished blockchain project, the system coin of which does not function without launching the network. The token, which acts as a superstructure of the cryptocurrency, performs some of its functions, later reuniting with the blockchain and broadcasting all the recorded information.History of Token CreationThe tokens were created in 2013, when the first ICO of cryptocurrencies was made when creating a new blockchain project.At that time, specialists created an intermediate link with specific functionality that allows bringing investors and developers of the blockchain system closer together. Thus, a token was formed with certain conditions of cooperation, which allows you to receive investors ' deposits in a simpler form. So, even an unfinished, completely new blockchain project with its own cryptocurrency can receive the necessary funding at the final stage of development. Meanwhile, investors receive internal tokens, which are later transformed into cryptocurrency. Of course, there are also not so successful results of investing in a digital currency. More than 75% of ICO cryptocurrencies with tokens are failed or fraudulent. However, this is a completely different story.To sum up, the token is only a temporary similarity of the share of the main blockchain. The development of such a mechanism was initiated by the emergence of the Ethereum platform, the capabilities of which allow you to create new tokens. Now tokens are being developed in other places as well.Read more: What is an ICO?Why do I need tokens?The scope of application of tokens is very wide and becomes even wider with the spread of blockchain technologies. A token, unlike a cryptocurrency, can:Used to pay for services or goods;Demonstrate the share of users in a joint-stock company;It can be used as an internal currency that is traded only within a closed cryptosystem;Be used as a valuable reward for specific actions, for example, in social networks, on gaming sites, etc.;Act as a tool that demonstrates certain values (for example, the amount of free GB for installation, etc.).Read more: What is a spread in trading Forex and stocks Types of tokensDepending on the specifics of the role, there are tokens:Currency ones. Such tokens perform part of the functions of a digital currency, they can be paid, rewarded or used to save capital. There are no intermediaries in this case.Stock (tokenized securities). Such tokens are a complete copy of the share in the share capital, which gives the holder certain powers.Application tokens. They are called user or service ones. Such tokens are a kind of key that allows its owner to access a certain amount of the company's services or its goods. In other words, it is a digital obligation that restricts the provision of something valid, real.Tokens are assets that are translated into the blockchain code format and are equal to a set of physical values. Thus, some types of gold reserves are converted into tokens, since it is much more convenient to exchange digital assets online without actually transferring a material instrument.Reward tokens and reputation units.At the moment, the most popular type of tokens is the one that demonstrates professionalism, activity level and rank of the participant on the platform. They allow you to purchase artifacts in games, improve heroes and their skills.Read more: Blockchain technology: how it works and where it is usedHow are tokens similar to cryptocurrency?Despite the fact that many people try to call the token a cryptocurrency and vice versa, these assets are almost completely different. There are only four similarities identified by experts:Cryptographic encoding protects the structure of both the token and the cryptocurrency;Both assets perform the functions of electronic money, and therefore they can be stored in wallets;Transactions with currencies and tokens occur quickly and with small commissions;There is an opportunity to earn on both assets.On the contrary, there are a lot of differences between a cryptocurrency and a token. It is important to note the following:The issue of tokens is not only decentralized, unlike the issue of cryptocurrencies. Tokens are also issued in a centralized way using the management of the organizer of the blockchain project. In addition, tokens are issued all at once, and the cryptocurrency is in the process of mining;The exchange rate value of tokens depends not only on market factors of supply and demand. In addition, the amount of remuneration, compliance with the real asset and the rules of issue affect;Operations with tokens are easily processed centrally;The token does not have its own blockchain or sidechain, unlike cryptocurrency. It functions on the basis of an already created platform;The basic functions of a cryptocurrency and a token differ. So, tokens are a kind of" coupon " that allows you to get services, goods or a share in the project. Cryptocurrencies also create a convenient space for the interaction of participants in transactions – a comfortable exchange of value values;The token is tied to a specific project and acts as a means of payment in a specific blockchain, the basis of which is cryptocurrency. A token cannot function without a cryptocurrency, and a cryptocurrency without a token is safe;The token can be used more widely. At the same time, the cryptocurrency is a larger-scale tool, since it is used not within the project, but throughout the digital economy.Thus, there is a strong difference between tokens and cryptocurrencies on the face. The specifics of a particular blockchain project affect the functions of the internal token: whether it will serve as a share, a reward tool, a currency, a valuable asset or perform a service function. At the same time, cryptocurrency acts as a means of payment and a carrier of financial information. Moreover, an investor can earn money on a token only in the case of investing in an ICO or resale, which can not be said about cryptocurrency. Before working with a token, it is worth carefully analyzing the blockchain system in which it "lives", its prospects as a cryptocurrency in the ...