Effect of the War in Ukraine on Crypto
Since the idea of cryptos began to gain a foothold in global financial markets and regional economies, people have talked about its ultimate value and usefulness. Any crypto enthusiast or expert would tell you that it is the future, but proponents of the traditional system would say that it is a passing fancy.
In the last 2 years, two incidents have both validated and disproved these perspectives: the COVID-19 pandemic and the consequent near-global lockdown protocol, and the war in Ukraine. The former is mostly behind us but the latter is right in front of our noses. Even so, both experiences show us that the traditional financial system is inconsistent, inadequate, and imperfect. Enter the crypto industry and the volley of advantages that it has brought—is bringing and will bring—to the table. The prospect of absolute decentralization and value distribution (such that there is no longer distinction in value with regard to regional (fiat) currencies) is exciting enough reason to make progressive minds jump at the technology.
So, with COVID-19 (hopefully) behind us and the war in Ukraine in view, what has changed about the crypto industry? Are we seeing a future free of invasions due to the proliferation of crypto assets and regulations? Should we expect further applications of the blockchain vision such that the social and economic aspects of our lives are better stimulated for safety and satisfaction?
This article does not dare provide answers to these questions. However, we dare to make informed speculations about how the war in Ukraine has affected the crypto industry, especially with reference to regional and global acceptance and usage.
Contemporary Economies and the Way of Sustainability
The war in Ukraine has opened a lot of eyes regarding the way that national economies work. For a long time now, there has been talk of economic sustainability, the kind of safe haven that a government should be able to give its people so that they don’t have to fall back on milking their natural environments dry. Trade would be global, all nations would have a seat at the round table, and the earth would invariably have one big happy human family.
The war in Ukraine has taught us that this dream has several implications. For one, as a government or government representative, you should not expect that you would be able to do whatever you want to the people of your country. More than that, you should not fantasize about telling someone else how to run their country. If you do, you would be slammed with sanctions and will have no other choice but to bow your head.
This is the reality to be expected of social and economic sustainability: a universal consciousness of accepted conduct and norms. We are halfway there, which is why Russia could be excluded from the global cake of economic benefits when they decided to invade another country and start a war.
As of right now, many global financial markets have seen it fit to rob Russia of transaction rights. Economic and employment networks, particularly freelance, have also shut their doors on Russians as a way to express displeasure at the way things are running.
This is the real face of an economic sanction, and it means that the offending party, in this case, Russia, would receive scorn and contempt from the rest of the world. On the other hand, the aggrieved party, in this case, Ukraine, would receive as much love and support as the rest of the world can bundle up and send across.
The State of Cryptos and the Crypto Industry Before the War
Joining the Crypto Economy: What is the Hold-Up?
In the last decade, quite a number of things became mainstream. We had the film adaptation of George R. R. Martin’s Song of Ice and Fire series which came to be known as A Game of Thrones and threatened to upend the Harry Potter fanbase universe. Netflix also became a big deal thanks to a deluge of TV shows. But neither of these comes close to the crypto-verse in terms of popularity, controversy, and clout.
When Bitcoin developer Satoshi Nakamoto published the legendary white paper on peer-to-peer finance in 2008, it didn’t raise that much dust. At least, not among everyday people who are more interested in checking the boxes on their December grocery lists. But it is 2022 and the concept of blockchains, virtual currencies, and non-fungible tokens (NFT) are no longer loony issues.
Even so, there is still a lot of skepticism and suspicion towards the workability of crypto-assets and their neighbors (the metaverse, Web 3.0, etc.). So this article highlights some of the points raised by crypto critics and the occasional crypto-gnostic who wants to join the crypto wagon but turns back at the last step.
Introducing Kyrrex, the New Coinbase Alternative
If you're looking to join the cryptocurrency craze, an exchange will likely be your primary gateway. Decentralized exchanges let you buy and sell crypto anonymously, but most of them have a steep learning curve. Centralized exchanges, on the other hand, require some form of verification but are more user-friendly.
By several metrics, Coinbase is regarded as the best cryptocurrency exchange in the world. Over the years, the platform has certainly done its bit to make digital currencies more accessible. A few platforms have sprung up to give Coinbase a good challenge. As the industry matures and the space becomes more competitive, the drawbacks of Coinbase become more apparent.
This article focuses on one of the newer alternatives to Coinbase—the Kyrrex exchange. We look at why some users might want to switch from Coinbase/Coinbase Pro. We will also explain about the advantages of the Kyrrex crypto exchange over Coinbase and extra features that users can enjoy on the platform.
The Centralized Exchange
A cryptocurrency exchange works similarly to your local brokerage. These platforms provide easy access to the tools of cryptocurrency trading. You can buy and sell a wide selection of digital currencies like Bitcoin, Ether, Cardano and Dogecoin. You can make purchases with your credit card and select from a range of trading pairs.
There are dozens of cryptocurrency exchanges but not all of them will suit your needs. The best ones combine ease of use and strong user protection with low fees and a sizable number of supported currencies.
A centralized exchange is a middleman that matches verified buyers with verified sellers and allows cryptocurrency trades to take place. It is a trusted third party and somewhat similar to how a bank operates as a repository and broker of fiat transactions.
These exchanges are important to the cryptocurrency industry because they bring a pool of willing traders together. They also hold digital tokens on behalf of the customer, who no longer needs to worry about forgetting their private keys. They are also the primary access points to the cryptosphere.
Aside from these primary functions, centralized exchanges have other features that vary by platform. Thus, the exchange you settle for should ideally offer the kind of products you want.
How to Choose the Right Exchange
If you want to move on from Coinbase, your next steps are very important. New exchanges spring up all the time. However, there's zero guarantee of prolonged success. In fact, a few celebrated exchanges ended up folding up after some years.
With this in mind, you should look out for certain features when you check out an exchange. These features will help you decide whether the platform is right for you.
How secure is the platform? How does it react to hacks and other attacks? Checking the history of an exchange's response to security breaches will tell you a lot.
No matter how big an exchange is, it is not totally immune to hack attempts. Some exchanges are more successful than others in managing the aftermath. A few have insured customer funds against successful breaches. Some refunded users, others weren't able to; and others went out of business altogether.
- Trading Volume
Trading volume provides a measure of an exchange's popularity in the crypto world. A high trading volume means more active users on the platform and signifies a strong exchange. You should also check the volume of transactions in the currencies you're most invested in. If the volume is low compared to other platforms, it might be evidence of community distrust in the exchange.
- User Experience
There's no point in using an exchange if its features are too complicated for you to use. Before taking the leap, read reviews and watch videos to get a general idea of how the exchange works. Then decide if it's too complicated or just perfect for you.
- Supported Currencies
If you just want to invest in Bitcoin and Ethereum, you may as well choose your exchange at random. Most platforms have those two as the major tradable currencies.
However, if you're looking to buy and sell low-cap altcoins, your choice of exchange will impact the coins you can trade for. You should find major alts like Cardano, Litecoin, XRP, Solana and Dogecoin on most platforms. Beyond those, check that the platform has what you want before you sign up.
Exchanges are always adding new and old tokens all the time. Even so, not every exchange will support every asset. Peruse the list of coin offerings first. Naturally, you can broaden the range of coins you can buy by signing up to multiple exchanges.
- Legal Status in Your Region
Sadly, Coinbase isn't available in my country. This can happen with the exchange you like so be sure of its status in your legal jurisdiction before you sign up. Sometimes, this happens because of regulatory requirements. Sometimes, the exchange simply hasn't expanded to the area (yet).
Different governments have different rules regarding cryptocurrency exchanges. Not every exchange will meet these rules in every country. Some create country-specific versions of the platform that comply with government regulation in that country.
Rules can even differ within a country so be sure of the facts before you start using a platform. Nothing hurts more than signing up and then discovering that you can't buy and sell within the jurisdiction.
In rare instances, a certain digital currency has a disputed legal status and so isn't available. For example, XRP, the token from Ripple labs, is currently banned on US-based exchanges because of an ongoing legal case.