Like any enterprise with brokers and actors, the crypto market goes through phases of highs and lows. Even though these phases are diametrically opposite, they each have their pros and perks. For the sensitive crypto trader, the best phase turns into a bubble inside which they can make a lot of money and secure assets that will bring even more money later.
So, what is a crypto bubble and what implications does it have on the prospects of crypto trading and investments in the years to come?
Crypto bubbles are periods during which the prices of crypto tokens are at a radically different height than normal. Specifically, crypto tokens or assets sell for higher than they should, thereby allowing their holders to make money within a short while. Thus, the shorter the window of opportunity, the more profit crypto traders typically make, and vice versa.
Crypto bubbles develop from the interplay of numerous social and economic components, for example, the demand for a particular token or the projected prospects of a particular asset. Each of these components can be traced back to an expectation that develops as a response to a situation. The result is a crypto bubble where the price of a crypto asset usually quickly rises above its actual value and forms the basis for a crypto trader’s profiteering.
So, the more crypto actors (traders and investors) are attracted by the upward price trend of the crypto asset, the higher the price will go. Eventually, the asset will be priced for much higher than it is worth, in which case its holders can enjoy significant profits trading it.
Crypto bubbles are not periods of fluctuating prices of crypto assets. As a rule, price volatility is a fundamental characteristic of cryptos. So, when the price of a crypto asset A rises to a new all-time-high and then falls to a new all-time-low within a short period, that is not a crypto bubble.
Also, crypto bubbles do not have a specific time limit. This often makes it difficult to recognize them immediately. So, if you notice that the price of a crypto token has been rising by 5 units every 10 minutes for 4 hours only to dip, you can be sure that that is not a crypto bubble.
Lastly, even though crypto bubbles are seemingly random, they can usually be explained. As noted earlier, these bubbles can be traced to actual (that is, real-life) social and economic conditions, factors, or dynamics. So, if nobody can make sense of why the price of a crypto asset is rising, it is highly possible that it is not a crypto bubble.
The crypto industry has been experiencing a lot of downtime recently. Although some critics insist that this is proof that the industry is falling out of favor with market forces, we know that this is not the case. First, there is a global economic crisis and it is affecting crypto. Second, the ups and downs of the value of many popular cryptos could bring about positive trends in the long run.
From what we know of crypto bubbles, it is the scarcity of information regarding when it starts that makes it a profitable period for crypto traders. If every trader on the block has their eyes on an asset about to spark off a crypto bubble, the bubble will burst in no time. This is one of the reasons unpredictability can be a plus for smart crypto traders since it typically shrouds bubbles from public view until it can no longer do so.
This is not the be-all and end-all of what it takes to seize the initiative and make early and long-lasting profit from crypto bubbles. But it works and helps you see beyond the shroud of uncertainty and unpredictability. An easier way is to keep track of assets with rising prices and wait for said prices to rise above the norm and stay there for a while.
Crypto analysts will never get tired of speculating what great changes the crypto industry will introduce to the world of finance and business management. In reality, we know that the changes will certainly be multidimensional, so it will help you to know what crypto can and cannot do.
Crypto came to the rescue of Ukraine when it was invaded by Russia. That demonstrated that it could revolutionize national finance and tip international borders. Furthermore, it was one of the most convincing proofs that crypto was the future of decentralized finance, whether within the context of national sustainable growth and development or on an individual level.
There are great expectations for the crypto industry. The setups of business organizations will certainly be transformed with the global-scale implementation of smart contracts. New technologies and technological innovations will have to be developed to accommodate the rapidly growing system of blockchain operations and management. Retrieval systems will change, and so will the way the internet interacts with the flow of information. We are already seeing this with Web 3.0.
On an individual level, you will be able to better manage your resources, especially your finances. The extent to which big businesses can access and use your information will also change. So, the future of cryptocurrency is looking genuinely bright and beautiful.
Of course, there are dangers and risks to this future. In the absence of some regulatory standards, the system can be abused to take advantage of people and swindle them. So, while you can place your trust on the crypto system, some of its actors are bad news.
Thankfully, there are reliable centralized crypto platforms around. Some of these, like Kyrrex, are radically innovative as one-stop crypto-fiat banks. You can trust these ones while enjoying the occasional crypto bubble and anticipating the goodies of the imminent crypto future.
We know that a global economy driven by better models of financial management is possible. We also know that harnessing the power of blockchain technology creates endless possibilities for individual investment, dynamic control of finances, and much more.
In light of recent events, trust in crypto and the limitless opportunities it offers might seem more distant than ever. As serious stakeholders, we want to use this opportunity to reach out to our loyal customers and the general public and assure them that Kyrrex remains unaffected while standing strong as ever.
To summarize the problem, FTX mishandled investor funds by using user deposits to make investments of their own. FTX did not inform users before proceeding on this course of action. The funds were used without client consent, meaning that FTX’s ‘side’ investments were unauthorized and therefore illegal.
The recent spate of crypto setbacks reveal a number of gaps and leakages in decentralized finance. The biggest of these gaps is supervision: what guarantee can you, a crypto trader and investor, have that your preferred trading platform will not mishandle your funds?
In the decentralized market, you have a firmer grasp of your crypto assets and greater freedom to trade and invest without someone looking over your shoulder every time. But this comes with the risk of losing all your money if you entrust it to unsupervised third parties.
Crypto exchange platforms provide you a stage to trade and manage your crypto assets. But who/what keeps an eye on these platforms? Without strict oversight by a powerful body, you're essentially giving your money to an exchange do with as they wish.
Where there is no regulation, there is likely to be mismanagement and exploitation. Even if you can wager your life that an exchange platform is honest and will not mishandle your money, you have to admit that having the platform accountable to a higher authority increases your trust in it.
Turning to a centralized exchange like Kyrrex offers you the rewards of crypto without its major risk.
We believe that it is only when the crypto market is reasonably regulated that the crypto industry can flourish. Then, you will no longer have to deal with rugpull projects, fake developers selling you imaginary bridges in imaginary clouds, or situations like FTX that inevitably cause you to lose trust in every crypto exchange platform.
Kyrrex, as you know, is the first crypto-fiat bank. The same way we pride ourselves in being the first global bank, we pride ourselves in playing by the rules. There are several governmental and government-backed institutions that oversee our operations, and so we are licensed to operate in good faith. All of this is so that you can rest easy and continue to trust us.
We would like to place on record that Kyrrex Exchange has no dealing with FTX and its FTT token. Our exposure to FTX is zero. The exposure of our customers' funds to FTX is zero.
Here are a handful of reasons you should continue to trust Kyrrex as your crypto and fiat asset partner:
Kyrrex operates under the Class 4 virtual Finance asset (VFA) License from the Malta Financial service authority (MFA). We obtained this license in November 2021, reinforcing our intentions to comply with every legal requirement and audit condition.
This class of license comes with implicit confidence by the regulatory authority in the licensee. It means that Kyrrex has been thoroughly scrutinized and found to comply with all regulatory rules regarding user deposits and operation models. It means that you can trust us to keep your money safe and secure because Big Brother is watching all our moves.
As a crypto-fiat bank, Kyrrex allows you to use crypto tokens as easily as you use fiat currency. So, with Kyrrex you will be able exchange fiat currencies against digital assets and vice versa. This is because your tokens are safely stored and backed with valuable assets.
At Kyrrex, we promote and use an organic growth model. This means that apart from the charges that our clients are aware of, we don’t touch their deposits or funds. This is another reason we have regulators overseeing our operations. They keep us on our toes and make sure our operations are always prudent and compliant with all legal provisions.
Kyrrex has always favored an uncomplicated and user-friendly operating protocol. Our withdrawal system is like this also. So, our clients do not need to read and sign thousands of pages of T&A before they can withdraw their funds from Kyrrex. Everything is clear and transparent. Your funds are your funds and you can withdraw them at anytime.
Kyrrex is not exposed to FTX, Alameda Research, or any other crypto-related institution that has been implicated in the recent mess. So you can trust us unreservedly, we only build relationships with time-tested, reliable, and/or regulated exchanges.
So, Kyrrex remains worthy of your trust. However, we advise that when you use other exchange platforms, ensure that they are licensed and are committed to playing by the rules. Also, do not invest money that is not your own or spend more than you earn. If you can, avoid tokens that are not backed by tangible assets.
The crypto-verse has moved from the first stage of foundation-building and establishment. Virtually every developed and developing nation in the world today has a share in the global crypto pie. As a result, the current crypto era is all about innovation and the adaptation of blockchain solutions to a variety of old and new problems. But, the crypto industry has to overcome some of the present hurdles first, including the rise in regulations and the relegation of user privacy.
Regulations are popping up left and right. Governments are fighting to safeguard their economies from overexposure to criminal elements. However, crypto proponents are also doing their best to ensure that the entire blockchain ecosystem is not criminalized because of some mischievous users. In the meantime, innocent users are lost in the middle, pondering whether anonymity and privacy are still genuine components of crypto.
The crypto industry has an odd relationship with privacy issues. On the one hand, due to the public verifiability of transactions, the movement of money is easily traceable. On the other hand, privacy and confidentiality are core pillars of the crypto-verse. The system is thus balanced since it offers users a variety of ways to maintain their privacy. However, now that more governments are taking more active steps towards streamlining the crypto industry in a way that they can manage, the balance of security and privacy in the system is no longer reliable.
So, to ensure that your crypto assets, investments, and activities are private, here are 5 things you can do.
The way blockchains operate, anyone who knows your address on the blockchain has automatic access to information that is supposed to be private. Say you want to pay a customer in crypto and exchange addresses. This customer can use any number of tools, including a block explorer, to check your transaction history and find out the size of your crypto pocket.
One of the easiest ways to get out of this situation is to use a new address every time you have to engage in crypto transactions with someone. This helps you spread your activity and asset tracks across a wide range of wallets and addresses. When people look up the address you gave them for a transaction, they will not be able to find out the size of your crypto assets or even the entirety of your transaction history.
You can also be a bit more systematic by using several different wallets at the same time. With each wallet holding a certain amount of your investments and transaction history, you will be able to hide the majority of your crypto activities. This is another reason prominent crypto enthusiasts have accounts with multiple crypto exchange platforms. Each of these platforms serves as a separate bank, so to say, where they can create multiple wallets and use crypto addresses that help them shield their assets and activities from scrutinizing minds.
It is a fact that all crypto platforms, decentralized or centralized, are supposed to prioritize user privacy and security. This is because privacy and security are core components of the crypto-verse, ensuring that blockchains are not perpetually vulnerable to malicious break-ins. However, even though crypto exchange platforms are supposed to be user-centric and therefore give precedence to user security and privacy, this is not often the case.
To be fair, crypto platforms cope with many challenges. They have to ensure efficient transactions, deal with verification problems, maintain liquidity pools, and monitor the flow of tokens per time. Even though automated systems are employed for these functions, these systems are not omnipotent. Therefore, the crypto-verse is made up of many crypto platforms that are biased towards one or two of the foundational components of blockchain technology.
So, very few crypto platforms can effectively handle multiple components at the same time and therefore promote all the advantages of using crypto instead of the old system. You should be on the lookout for these innovative platforms because they use novel methods to prioritize user security and privacy.
One such crypto platform is Kyrrex, the innovative digital bank for all things crypto. The platform prioritizes several core crypto components, including security and privacy, transaction speed, trading ease, wide-range online integration, and user access to support. It uses hybrid cryptographic encryption methods to ensure that user data is hidden behind multiple layers of database security.
So, instead of using platforms that promote anonymous crypto trade or those that say nothing about the privacy and confidentiality of user data, use platforms that value and promote the safety of user assets. This choice covers you from virtually every danger of privacy violation, leaving your crypto exchange platform to worry about privacy and security concerns.
From the way crypto critics talk about the porosity of blockchain ledgers and transactions, you would think that every exchange ends up with one side more vulnerable to the assault of hackers than before the transaction. In truth, security and privacy are fundamental components of the crypto-verse, so every platform regards these components highly. (Only that some platforms, as we have shown, are more particular about them than others.) Therefore, there are privacy tools specially designed to promote the confidentiality of crypto users. Examples of such tools are zero-knowledge proofs, mixers, and ring signatures.
Consider zero-knowledge proofs. These are handy privacy tools because they are straightforward in their function. These proofs enable a user to confirm that they validated a particular crypto transaction and do so without having to provide their public keys to be believed. Ordinarily, publishing your wallet address is the traditional method of verifying transaction claims. However, with zero-knowledge proofs, you don’t have to give away your public address.
Zero-knowledge proofs are a derivative of zero-knowledge encryption, a system that ensures that a user’s access codes are only known to the user and no one else. So far, this system has been adopted in crypto security with the proofs. However, efforts are being made to fully adapt them such that they can become core features on every crypto exchange platform and service. That way, blockchain ledgers can remain transparent at the same time that users can shield their crypto activities and assets from other users and platforms.
Mixers and ring signatures serve similar functions in using both simple and complex methods to hide details of user transactions. Mixers, especially, require a third party whose database becomes the exchange point between crypto users. Therefore, transactions will be traced to the third party instead of the engaging crypto user.
All these tools are useful for protecting user crypto assets, activity, and privacy. Many crypto exchange platforms use them in one way or another. Therefore, you can rely on them as well.
VPNs have become one of the most convenient and valuable features for digital privacy and security. The best selling point of these services is that they can hide your online footprints, especially your IP address, from web trackers, governments, and even some crypto platforms. Therefore, using VPNs whenever you trade in crypto is one of the surest ways to preserve your privacy.
Every knowledgeable crypto user knows that some crypto platforms log users’ IP addresses to increase the efficiency of their services. The problem with this is that whenever hackers gain access to these platforms, they can make away with this information. Once this happens, you can expect clever hackers to try to make as much profit from their theft, including tracing your crypto transactions and finding out ways to defraud you eventually. When you use a good VPN that prevents any platform from logging your IP address, you remove yourself from this narrative of hackers and possible fraud.
One thing to keep in mind is that all VPNs are not the same. To use George Orwell’s words, all VPNs offer privacy values, but some VPNs offer more privacy values than others. You can be sure that premium VPNs (those whose services you have to pay to use) are generally more secure and reliable than free VPNs. So, to be safe, never use a free VPN with your crypto transactions.
The easiest way to lose your privacy and be flushed out of your crypto anonymity bubble is to engage social media with your crypto activities. Social media space is virtual, yes, but it is also all-reaching. With many online platforms integrated, every internet user is a flashing point that can be identified on the web. So, when you publish aspects of your crypto activities on social media, you are essentially throwing out pieces of meat and waiting for wolves to trace them back to you.
Granted, there is no reason a rational crypto user would want to have their crypto activities and assets exposed to the world. We all value our privacy, especially as it has to do with financial assets. But it is also very easy to accidentally compromise this privacy on social media.
Say, a celebrity asks their followers to drop their wallet addresses online so they (said celebrity) can give them (the followers) crypto for free. Once these addresses are posted online, they are almost certainly forever ‘inscribed’ on the walls of that social media platform. Any Tom, Dick, and Harry can follow these crypto addresses back to the user, look into their history, and think up ways to take advantage of them.
So, pay extra attention to how you post your stuff on social media. Keep in mind that it is difficult to erase online posts and that there is no steel-solid guarantee that hackers will not break into your social media accounts, even if temporarily. Therefore, endeavor to keep from posting your public and private keys online, whether in private chats or public posts.
So, to conclude, user privacy is very important to the crypto-verse. The appeal of the blockchain revolution is that it grants users more freedom over their assets and financial choices. However, once user privacy is compromised, this freedom counts for nothing. Therefore, the suggestions submitted in this article are simple but effective in safeguarding your place and future in the crypto-verse.
The crypto industry in Australia has begun to undergo a much-needed process of transformation and standardization. The current administration is doing what it can to ‘ground’ the industry and its offerings so that they are more tangible, transparent, and reliable. The result of the government’s efforts is the regulatory framework that will now be employed to manage the activities of the crypto industry in Australia. And although regulation typically suggests some level of control and restriction, the core of the new crypto rules in Australia is normalization.
Australia is not the first developed country to take a regulatory stance as regards the crypto industry. Some of its peers have long stamped their approval, while others are working overtime to shut down crypto activities within their economic borders. With Australia’s new regulations, the country has deliberately chosen a side. As such, it will now be listed among the nations that promote crypto activities. More than that, Australia is now one of those that have placed custody regulations on the industry.
Let us see what all that is about and what it means for the average Aussie.
The stipulations of the Australian crypto industry regulatory framework can be summarized in three points:
The new framework for the operations of the crypto industry in Australia is all about one thing: custody regulations. Put simply, the regulatory framework allows the government to hold every individual or organization involved in crypto activities to account. Consequently, crypto service providers will come under the supervision of the framework and be made to answer for whatever shenanigans mischievous crypto platforms and proponents may devise.
The ultimate goal of the regulatory framework is to create a convenient and reliably organized economic environment for Australian crypto users and investors. This will also drive home the certainty for crypto-asset businesses, reinforce their goals, and protect their customers. The stipulations of the regulatory framework are thus straightforward and can be relied on for consistency.
Furthermore, the framework is part of the necessary steps to ensure that the crypto industry in Australia has a focused direction of growth. It is also a mandatory process to increase the confidence of the Australian government and people about the crypto industry. After all, a fraction of Australia’s future, in the form of its people, has committed to the crypto industry. As such, keeping this fraction from harm’s way (economic hardship from poor financial decision-making) is a reasonable course of action. And that is the purpose of the new rules in a nutshell.
There are several positive implications of the framework, especially for Australian crypto users and investors. These are highlighted and developed in the subsequent subsections.
The foremost provision for the Australian crypto regulatory framework is that every company, agency, or business outfit associated with the creation, handling, or supervision of crypto-related things will have to adhere to the new rules. This is the core of the matter. It means that organizations that are crypto-related in their primary or secondary goals have to abide by rules moving forward. It also means that such organizations must answer to the Australian government if things go any way other than expected.
As a result of this renewed basis for organizational accountability, crypto users and investors will be able to trust the guarantee of secondary service providers. Ideally, crypto investors will be able to choose crypto establishments based on shareholder objectives and will be more assured of what they are getting into every time.
With the stipulations for the registration and licensing of secondary crypto service providers, crypto users and investors will now be able to peg legitimate operators. This is the equivalent of unmasking service providers to ensure that the crypto ecosystem is now transparent. As a result, users will be better protected against the wolves and bandits that would want to take advantage of the privacy components of the crypto-verse.
Also, the new regulations ensure that cyber-security measures are now buffed up so that users are no longer exploited for their ignorance. Platforms no longer have the right to provide the barest information on their offerings and the risks involved. Essentially, platforms have to be nicer or face the wrath of the government.
Also, users are now protected against unnecessary risks. Crypto platforms have to offer options for fund recovery in the face of unreasonable loss. This is expected to put an end to crypto platforms running away with investor funds or deliberately using these funds for something other than they claim.
The stipulations for secondary crypto service providers have indirectly created a gap between ‘primary’ crypto developers and the intermediating service providers. The primary developers are not subject to much of the regulations except where it might negatively affect Australian crypto users and investors. But service providers will have to bear more responsibility in assuring the government and people that there would be no overwhelming loss.
The goal of the framework in this respect is sustainable development. In other words, no entity will have to be cheated so that another would gain, and crypto service providers now bear the onus of ensuring a fair market. As such, crypto developers are at liberty to renew, remodel, and create new projects and technologies to advance the use and applications of blockchains and cryptos.
The government also gets to benefit directly from the regulations. For one, the rules now ensure that organizations that are crypto-related in any way have to adopt operational ethics and values against fraud and fraudulent activities. It does not matter if this fraud takes the form of rug pull or money laundering exercise. As long as there is a high possibility of someone being conned using their platform, the government can legitimately fine such platforms or shut down their operations.
As a consequence, crypto-related organizations have joined the anti-money laundering policing efforts. As such, there is a greater possibility of stamping out the cancer of fraud, thereby cleansing the Australian investment economy and improving its ranking on the global board of corruption. An economy that is deemed to have integrity draws all kinds of investment opportunities from all over. Therefore, it is only a matter of time before the joint efforts of the Australian government and the crypto industry yield greater benefits.
Once again, crypto users and investors will be more self-assured knowing that tech-armed bandits will be severely punished. And where there is a dispute regarding the ownership of crypto tokens and investment blocks, the regulatory system will allow for straightforward resolution.
The hallmark of the regulatory framework for the operations of crypto service providers in Australia is bureaucratic certainty and user confidence regarding the crypto industry. The ultimate game is to remove unnecessary uncertainty and financial insecurity, especially for first-time users and investors. Currently, the majority of Australian crypto traders and investors depend on the reputation of crypto platforms as a form of insurance against dubious activities. But this means that users would lose out on the opportunities afforded by new and genuine crypto platforms. With the regulations in effect, users can trust the system and its operators, and be confident in their choices.
Also, crypto users and investors will no longer have to rely on expensive methods to protect themselves from the knotty frameworks of the still-growing crypto industry. The regulations will increase the transparency of the industry. This is especially so for novel but complex innovations, concepts, and opportunities. In brief, users can now take advantage of the entire range of crypto opportunities and offerings, adjusting to the right amount of financial risk and trading or investment complications.
It is important to note that the regulation is based on the findings of evidence-based research, which is why it was derived from a ‘token mapping’ exercise. The implication of refusing to adhere to the regulations is that crypto users will have to look elsewhere to use crypto services confidently. In other words, it will show that the crypto-related platforms operating in Australia have something to hide, intend to exploit and prey on Australians, and consequently cannot be trusted. But trust is a fundamental component of the crypto industry, and the reinforcement of this component is good news to crypto users and investors everywhere and every time.