Cryptocurrency trading is vast and varied, with diverse avenues for investment and transaction. One such promising avenue that has caught the attention of investors and entrepreneurs alike is Over-the-Counter (OTC) trading. Unlike traditional exchanges, OTC trading offers a more personalized and convenient way to privately trade large volumes of cryptocurrencies.
For businesses or individuals looking to delve into this vibrant sector, setting up an OTC trading platform can open up new revenue streams and cater to a growing segment of crypto traders seeking discretion and flexibility.
Before embarking on the journey to establish your own OTC platform, it is essential to be aware of the requirements that can pave the way for a successful launch. These requirements range from a deep understanding of the cryptocurrency landscape to having a robust technical infrastructure and regulatory compliance.
At the heart of every successful OTC crypto exchange platform is a profound understanding of the cryptocurrency landscape. Knowing your market, audience, the latest trends, risks, and opportunities is crucial for creating a platform that appeals to your target users.
Developing a cryptocurrency OTC exchange requires a robust technical infrastructure that can handle large transactions and provide a seamless user experience. It involves setting up a reliable server system, security measures, user-friendly interface, and efficient trade matching algorithms.
Compliance with regulatory requirements is non-negotiable in the crypto world. This involves acquiring necessary licenses, adhering to KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations, and staying updated with the evolving regulatory landscape.
Liquidity is key in the world of OTC trading. Having a strategy for liquidity management, whether it’s through market-making, partnering with liquidity providers, or integrating with a liquidity network, is vital for your platform's success.
Once your platform is up and running, attracting users and encouraging active trading is crucial. This requires a well-planned marketing and user acquisition strategy that effectively communicates the benefits of your platform to potential users.
These are the essential pillars that form the foundation of a successful OTC crypto exchange. Each of these requirements warrants careful consideration and strategic planning.
Kyrrex presents an outstanding White Label crypto solution that serves as a reliable and proficient partner for launching your OTC crypto exchange platform. With an impressive track record, Kyrrex's expertise plays an instrumental role in successful market entry and the prosperous operation of your platform. Ensuring regulatory compliance across multiple jurisdictions, Kyrrex holds licenses that protect your platform and guarantee its legality.
In terms of technology, Kyrrex boasts a platform designed on modern multi service architecture, prepared to scale and evolve in tandem with your business. This innovative technology fosters a seamless and efficient trading experience for users. The security of Kyrrex's platform is another notable aspect, with enhanced Security & AML checks powered by strategic partnerships, like that with Chainalysis. This robust security infrastructure keeps your platform safe from unauthorized transactions and potential risks.
What sets Kyrrex apart is its exemplary customer support. Every client is provided with a personal manager, offering consistent assistance throughout the setup and operational process of the OTC crypto exchange. In choosing Kyrrex as your OTC trading platform provider, you're partnering with an entity synonymous with trust, reliability, and unparalleled excellence, thereby paving the way for your platform's undeniable success.
Setting up your own OTC trading platform can be a daunting endeavor without the right partnership. The integration with Kyrrex makes this process not only straightforward but also secure and technically sound. The technical prowess, regulatory compliance, robust security measures, and dedicated customer support ensure that your platform is set up for success from the get-go.
Cryptocurrencies have taken the world by storm, revolutionizing the way we perceive money and conduct transactions. But what exactly are these digital assets, and how can we harness their power for financial gain? In this comprehensive guide, we’ll explore the ins and outs of cryptocurrencies, from understanding their underlying technology to buying, selling, and safeguarding your digital assets, with a focus on crypto.
We’ll delve into the world of Bitcoin and altcoins, introduce you to the concept of blockchain technology and its applications, and provide insights into the best practices for trading, earning rewards, and securing your digital wealth in the crypto sphere. So let’s embark on this fascinating journey and unlock the true potential of cryptocurrencies!
Cryptocurrencies are digital assets that use cryptography to ensure secure transactions and protect transaction data. They come in various forms, including the pioneer Bitcoin and an array of alternative cryptocurrencies, or altcoins, such as solar power, wind power, and geothermal energy. These digital currencies offer a plethora of advantages, including secure transactions, decentralization, and the ability to earn rewards through staking or participating in network activities.
However, the world of cryptocurrencies is not without challenges. For instance, some aspects of cryptocurrency usage, such as geothermal energy extraction, can raise environmental concerns and require stringent oversight, especially in developing countries where the energy is produced.
Despite these obstacles, the growing popularity and adoption of cryptocurrencies continue to reshape the financial landscape and pave the way for a more decentralized and secure future.
Created by the enigmatic Satoshi Nakamoto in 2009, Bitcoin is the first and most well-known cryptocurrency. It serves as a digital alternative to traditional currencies, harnessing the power of blockchain technology to enable secure and decentralized transactions. As a new cryptocurrency at the time, Bitcoin has not only revolutionized the perception of money, but also spawned a novel asset class for investors, attracting the attention of businesses and organizations around the world.
As the trailblazer in the realm of cryptocurrencies, Bitcoin paved the way for a plethora of altcoins that followed in its footsteps, each with its unique features and use cases. Yet, despite the ever-growing number of digital currencies, Bitcoin remains the most popular and valuable, standing as a testament to the transformative power of blockchain technology and the potential it holds for the future of finance.
After the advent of Bitcoin, a diverse array of alternative cryptocurrencies, or altcoins, emerged, offering new features, use cases, and technologies. Some altcoins, for example, focus on providing enhanced privacy features, guaranteeing that only you have access to your transaction data. Others are designed for micropayments or small amounts of transactions, catering to specific market needs.
Altcoins such as:
They have carved their niches in the crypto ecosystem, each with its own distinct consensus mechanisms and applications. They can be utilized for various purposes, including payments, remittances, and decentralized finance (DeFi). As the crypto landscape continues to evolve, these altcoins, alongside Bitcoin, are likely to play a significant role in shaping the future of digital finance.
To buy and sell cryptocurrencies, you need to navigate the world of exchanges - platforms that facilitate trading and conversion between fiat currencies and cryptocurrencies. Exchanges are regulated entities, such as Crypto.com, which is licensed as a Class 3 Virtual Financial Assets Service Provider by the Malta Financial Services Authority. These trading platforms not only allow you to purchase digital assets like Bitcoin, Ethereum, and stablecoins, but also offer various services, including order execution and custodian or nominee services.
Navigating the world of crypto exchanges can be daunting for newcomers, but understanding their features and functions is key to unlocking your digital assets’ potential. In the following sections, we’ll explore the different types of exchanges, their offerings, and how to convert your fiat currency into cryptocurrency.
Cryptocurrency exchanges are platforms that enable customers to trade digital currencies for other assets, operating similarly to stock exchanges. There are three primary types of exchanges:
Exchanges offer a variety of features, such as:
However, it’s essential to weigh the pros and cons of each exchange, as they can be susceptible to hacking and may impose high fees for trading.
Fiat-to-crypto conversion is the process of exchanging traditional currency (fiat) for cryptocurrency, typically carried out through a fiat-to-crypto exchange platform. These platforms enable users to convert fiat currencies like USD, EUR, and GBP into cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
The process is relatively straightforward.
Although fees for conversion typically range from 0.50% to 2%, it’s essential to thoroughly investigate the exchange platform you intend to use to ensure its security and trustworthiness. Moreover, it’s vital to use a secure wallet to store your cryptocurrency once you’ve acquired it. By following these guidelines, you can safely convert your fiat currency into digital assets and start exploring the world of cryptocurrencies.
Earning rewards with crypto can be an attractive prospect for many, as it provides the opportunity to generate passive income and explore new financial avenues. By staking or lending cryptocurrencies, users can earn rewards in the form of additional cryptocurrency or interest. With the potential to receive up to 10% in annual rewards when investing in crypto, it’s no wonder that more and more people are drawn to this burgeoning market.
In the following sections, we’ll delve deeper into the world of staking and lending, discussing the processes, benefits, and risks involved in earning rewards with crypto. Whether you’re a seasoned investor or a curious newcomer, understanding these concepts can open up new doors to financial growth and prosperity.
Staking is the process of locking up a certain amount of cryptocurrency to support the network, with the potential to receive rewards in return. It has emerged as a popular method of generating passive income in the crypto sphere, allowing users to earn interest or rewards by holding a specific cryptocurrency in a wallet to support the network’s operations.
Staking comes with its fair share of benefits, such as the opportunity to generate passive income and contribute to the network’s security. However, it also carries some risks, such as the possibility of not receiving rewards or the fluctuation of the cryptocurrency’s value. By carefully assessing the various staking options available and understanding the risks associated with each, you can make informed decisions and potentially grow your digital wealth.
Lending and borrowing in the crypto space offer unique opportunities for users to earn interest on their assets or borrow funds using their crypto holdings as collateral. Enabled by decentralized finance (DeFi) protocols, these financial services allow users to lend their crypto assets to others in return for interest or borrow funds by using their crypto holdings as collateral.
The primary benefits of lending and borrowing in the crypto space include the ability to accrue interest on crypto assets, access liquidity, and potentially amplify returns. However, these financial opportunities also come with risks, such as default risk, market volatility risk, and platform failure risk.
By carefully weighing the potential rewards against the risks, you can make informed decisions and explore new financial opportunities in the world of crypto.
Blockchain technology lies at the heart of cryptocurrencies, serving as the foundation upon which they are built. This innovative technology provides:
Understanding the principles of blockchain technology and its various facets can give you a deeper appreciation of the potential that cryptocurrencies hold.
In the next sections, we’ll explore the key features of blockchain technology, such as decentralization and security, as well as delve into the world of smart contracts and DApps. By gaining a solid understanding of these concepts, you’ll be better equipped to navigate the ever-evolving landscape of cryptocurrencies and tap into their full potential.
Decentralization and security are integral features of blockchain technology, working hand in hand to ensure that transactions are transparent, tamper-proof, and not controlled by a single entity. Decentralization refers to the dispersal of authority, power, and decision-making away from a central governing body, which is a core principle of blockchain technology and cryptocurrencies.
This decentralized nature not only allows for greater transparency and control over transactions, but also contributes to enhanced security. Blockchain networks rely on cryptography to secure transaction data and protect it from unauthorized access, making them inherently more secure than traditional financial systems.
By understanding the relationship between decentralization and security, you can better appreciate the unique advantages that blockchain technology brings to the table.
Smart contracts and DApps are programmable applications built on blockchain platforms like Ethereum, which enable a wide array of use cases, such as decentralized finance, gaming, and supply chain management. Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller encoded in lines of code, allowing for the automation of various processes and the elimination of intermediaries.
DApps, on the other hand, are decentralized applications built on top of blockchain platforms that provide users with a range of services and functionalities without the need for a centralized authority. Some examples of DApps include:
The possibilities for DApps are virtually limitless, even for a company looking to explore this technology.
As the world of blockchain technology continues to expand and evolve, smart contracts and DApps are poised to play an increasingly important role in shaping the future of digital finance.
As cryptocurrencies continue to gain traction, their adoption and use cases are growing exponentially. Some of the key use cases of cryptocurrencies include:
The versatility and potential of cryptocurrencies are becoming increasingly apparent. With the Global Crypto Adoption Index providing insights into the countries leading the charge in embracing digital currencies, it’s clear that the future of finance is being shaped by these innovative digital assets.
In the following sections, we’ll delve into the various use cases of cryptocurrencies, exploring their applications in payments, remittances, and decentralized finance. By understanding the wide range of possibilities that cryptocurrencies offer, you can better appreciate their potential impact on the world of finance and beyond.
Cryptocurrencies offer a faster, cheaper, and more secure alternative to traditional payment methods, making them an attractive option for individuals and businesses alike. By using a digital wallet, users can send and receive payments in the form of cryptocurrencies, all without the need for intermediaries or exorbitant fees.
Similarly, remittances with cryptocurrencies offer a more efficient and cost-effective way to transfer funds across borders. Users can leverage their digital wallets to send money to recipients in different countries, who can then receive the funds in their local currency. By bypassing traditional banking systems and their high fees, cryptocurrencies are revolutionizing the way we conduct transactions and send money across the globe.
Decentralized finance, or DeFi, is a rapidly growing sector within the crypto space that leverages blockchain technology to offer a wide range of financial services without the need for intermediaries. By eliminating the need for traditional financial institutions, DeFi protocols enable users to access services such as lending, borrowing, and trading in a trustless, permissionless, and open environment.
The advantages of DeFi include increased access to financial services, reduced costs, and greater transparency. However, as with any nascent technology, there are risks associated with DeFi, such as potential smart contract bugs, lack of regulation, and the possibility of malicious actors exploiting the system.
By carefully navigating the DeFi landscape and understanding its potential rewards and risks, users can unlock new financial opportunities and shape the future of digital finance.
As the world of cryptocurrencies continues to grow and evolve, safeguarding your digital assets becomes increasingly important. Wallets, which are digital storage solutions for cryptocurrencies, provide secure storage by encrypting private keys used to access your assets. Additionally, adhering to best practices for crypto security, such as using strong passwords and enabling two-factor authentication, can further protect your digital wealth from theft and loss.
In the following sections, we’ll explore the various types of wallets available for securely storing and managing your cryptocurrencies, as well as discuss best practices for ensuring the security of your digital assets. By taking the necessary precautions and staying informed, you can safeguard your investments and enjoy the full potential of cryptocurrencies with peace of mind.
Wallets are essential tools for securely storing and managing your cryptocurrencies, ranging from hardware wallets to mobile and desktop applications. These wallets store users’ public and private keys, providing an interface for managing crypto balances. Different types of wallets cater to varying needs, with hardware wallets being the most secure option, while software wallets offer greater convenience for everyday use.
To ensure the security of your digital wealth, it’s crucial to adhere to recommended practices for wallet usage, such as using strong passwords, enabling two-factor authentication (2FA) when available, and never sharing your private keys. By following these guidelines and choosing a reliable wallet, you can protect your crypto assets and rest assured knowing that your investments are secure.
Protecting your digital assets is of utmost importance in the world of cryptocurrencies. Some best practices for crypto security include using strong passwords, enabling two-factor authentication (2FA), and keeping your private keys safe. Strong passwords can help safeguard your digital assets from theft and loss, while 2FA adds an additional layer of security to your account.
Moreover, ensuring the safekeeping of your private keys is crucial, as these keys grant access to your digital assets. By adhering to these best practices and staying vigilant, you can protect your investments and ensure the security of your digital wealth in the ever-evolving world of cryptocurrencies.
In this comprehensive guide, we’ve explored the fascinating world of cryptocurrencies, delving into their underlying technology, the process of buying and selling, earning rewards, and safeguarding your digital assets. As we’ve seen, cryptocurrencies offer a wealth of opportunities for investors and users alike, from secure transactions and passive income to the potential for reshaping the future of finance.
As the adoption of cryptocurrencies continues to rise, understanding their intricacies and nuances becomes increasingly important. By staying informed and embracing the possibilities that cryptocurrencies offer, you can unlock new financial opportunities and boldly navigate the emerging digital landscape.
Cryptocurrency is an extremely high risk investment, so it’s important to go into it with your eyes open. Don’t invest unless you’re prepared to lose all the money, as prices can plunge at any time.
For a safe, yet lucrative crypto investment, experts generally recommend allocating 5-30% of your investment capital per month.
It is wise to stick within the range of 15-50% for optimal returns.
Cryptocurrencies remain high-risk investments due to their volatility and lack of regulation. Exchanges, wallets, and other platforms handling crypto assets could become bankrupt or vulnerable to attack, putting your funds at risk.
Additionally, while Bitcoin technology is safe, it isn’t anonymous, as the address of your wallet is publicly available.
Green energy is renewable energy sources such as solar, wind, geothermal, biogas and eligible biomass, which provide environmental benefits. It also includes low-impact small hydroelectric sources that are generated from natural resources, like sunlight, wind or water.
Bitcoin is the original cryptocurrency, while altcoins are alternative cryptocurrencies developed after Bitcoin that offer different features and use cases.
Cryptocurrencies have grown in popularity in recent years, with many people buying, selling, and trading these digital assets. While cryptocurrencies can offer financial benefits, they can also come with tax obligations that users need to be aware of. In this article, we will discuss crypto tax, what it is, and how it affects users.
Crypto tax is a tax that applies to cryptocurrency transactions. Similar to traditional taxes, crypto taxes are enforced by the government and must be paid by individuals or entities that buy, sell, or trade cryptocurrencies. The tax rules vary by jurisdiction, so it is important to research the laws in your country or region.
Crypto tax refers to the taxes that apply to transactions involving cryptocurrencies, such as Bitcoin, Ethereum, and other digital assets. In most countries, cryptocurrencies are considered to be property for tax purposes, which means that buying, selling, or trading them can trigger tax obligations.
The tax rules for cryptocurrencies can vary depending on the jurisdiction, and it's important for users to research and understand the laws in their specific country or region. Transactions involving cryptocurrencies can result in capital gains tax, which is a tax on the profit made from the sale of an asset. The tax rates for capital gains can vary based on a variety of factors, including the length of time an asset was held before it was sold.
Calculating crypto taxes can be a complex process, especially if there have been multiple transactions over time. To ensure compliance with tax regulations, it's recommended that users seek the assistance of a tax professional or use specialized software that can help with cryptocurrency tax calculations.
Failing to pay crypto taxes can result in penalties and interest charges, and legal action may be taken against individuals who fail to pay their taxes. By understanding the tax rules and staying on top of their obligations, cryptocurrency users can avoid these consequences and ensure compliance with the law.
Crypto tax is imposed on cryptocurrency transactions because governments view cryptocurrencies as property, rather than currency. This means that they are subject to capital gains tax, just like other forms of property.
When you sell or exchange cryptocurrencies, you may realize a capital gain or loss, which is the difference between the price you bought the cryptocurrency for and the price you sold it for. Capital gains tax is then applied to this gain. The tax rate can vary depending on the length of time the cryptocurrency was held before it was sold, as well as other factors such as the taxpayer's income and tax bracket.
Some governments have also implemented tax regulations specifically for cryptocurrencies to prevent tax evasion, money laundering, and other illicit activities. These regulations help ensure that individuals who earn income from cryptocurrencies pay their fair share of taxes, just as they would with any other asset.
It's important to note that the tax rules for cryptocurrencies can vary depending on the jurisdiction, and it's recommended that individuals research and understand the laws in their specific country or region to ensure compliance with tax regulations.
Calculating crypto taxes can be a complex process, but there are a few steps that can help make the process easier. Here's a general overview of how to calculate your crypto taxes:
Start by keeping a record of all your cryptocurrency transactions throughout the year, including the date of purchase, the amount spent, the type of cryptocurrency purchased, and the date and amount of any sales or trades.
Your cost basis is the original purchase price of your cryptocurrency. This is important to determine because it helps you calculate the capital gain or loss when you sell or trade the cryptocurrency. If you bought the cryptocurrency with fiat currency, your cost basis is simply the amount you paid. If you received the cryptocurrency as payment for goods or services, your cost basis is the fair market value of the cryptocurrency at the time you received it.
When you sell or trade your cryptocurrency, you will need to calculate your capital gain or loss. This is the difference between the amount you received for the cryptocurrency and your cost basis. If you sold the cryptocurrency for more than your cost basis, you have a capital gain. If you sold it for less than your cost basis, you have a capital loss.
Depending on the jurisdiction, your capital gains may be subject to different tax rates. Short-term capital gains (gains on assets held for less than a year) are typically taxed at a higher rate than long-term capital gains (gains on assets held for more than a year). Be sure to research the tax laws in your jurisdiction to determine the applicable tax rates.
Finally, you will need to report your crypto taxes on your tax return. You will generally report your capital gains and losses on Schedule D (Form 1040) in the United States.
It's important to note that calculating crypto taxes can be a complex process, especially if you have made multiple transactions throughout the year. It is recommended that you seek the assistance of a tax professional or use specialized tax software that can help you with cryptocurrency tax calculations.
If you fail to pay your crypto taxes, you may face penalties and interest charges, and legal action may be taken against you by the tax authorities in your jurisdiction. The specific consequences of not paying your crypto taxes can vary depending on the laws in your country or region.
Here are some of the consequences you may face if you don't pay your crypto taxes:
The tax authorities in your jurisdiction may assess penalties and interest charges on any unpaid taxes, which can add up quickly and increase the amount you owe.
If the tax authorities suspect that you have not paid your crypto taxes, they may launch an audit or investigation to determine the extent of your tax liability. This can be a time-consuming and stressful process, and it may result in additional penalties and charges.
In some cases, the tax authorities may take legal action against you to recover unpaid taxes. This can include garnishing your wages, placing a lien on your property, or even seizing your assets.
If you fail to pay your taxes and the tax authorities report this to credit bureaus, it can negatively impact your credit score and make it harder for you to obtain credit in the future.
It's important to note that the consequences of not paying your crypto taxes can be severe, and it's in your best interest to pay your taxes in full and on time to avoid these consequences. If you're unsure about your tax obligations, it's recommended that you seek the advice of a tax professional who can help you navigate the tax laws in your jurisdiction.
Crypto tax can be a complex and confusing topic, but it is an important aspect of cryptocurrency ownership. By understanding the tax rules and staying on top of your obligations, you can avoid penalties and ensure that you are in compliance with the law. If you are unsure about your tax obligations, it is recommended that you seek the assistance of a tax professional or use tax software to help you calculate your taxes.
Tether is perhaps the third most important cryptocurrency after Bitcoin and Ether. It's a stablecoin so it's relatively stable, unlike BTC and other crypto whose values fluctuate, sometimes wildly, from one minute to the next.
Tether is better known as USDT and is the main on-ramp and off-ramp currency in the crypto market. People who want to buy Bitcoin, Ether or some other coin, usually buy USDT first.
Although there are other stablecoin challengers like BUSD, USDC and DAI, tether endures as the leading collateralized stablecoin on the market.
For this reason, there are numerous ways to buy Tether instantly. You can buy USDT with fiat or another cryptocurrency. You can buy Tether on basically every major cryptocurrency exchange on the market. You can even buy Tether offline through P2P. Here, we gather some of the best ways to instantly buy Tether.
Let's begin with where you can buy Tether (USDT)
You can buy Tether with credit card or other means on every major cryptocurrency exchange. If you hold a popular cryptocurrency, you can look for its pair with tether on a centralized or decentralized exchange and swap it for USDT.
Because of its importance to crypto, Tether is the most common coin for pairing with other cryptocurrencies.
Here are some exchanges where you can buy USDT instantly and use it to buy other cryptocurrencies:
You can also buy Tether on-ledger on supported blockchain networks. For example, if you wish to use tether on the Ethereum or Solana network, you can go to a decentralized exchange like Uniswap or Raydium and buy ERC20- or SPL-compatible USDT.
Once you've allocated the funds or crypto to buy tether with, the next step is to make the purchase. These pointers will guide you on how to do so.
If you want to buy USDT instantly, you need a platform. That's where cryptocurrency exchanges come in. It is important to choose the right exchange that will let you buy Tether online with your preferred method.
You shouldn't rush to create an account on the first crypto exchange you come across. There are so many of them and they vary in terms of ease of use and the features they offer. Your location should also be considered before you plump for an exchange.
Several exchanges have been under the spotlight in various parts of the world for possible regulatory infractions. If you're big on AML compliance, you should consider buying your USDT and making trades on exchanges like Kyrrex.
On a centralized exchange, you need to open an account and get verified before you can buy Tether. On a decentralized exchange like Uniswap, you can skip verification.
Once you're ready to buy Tether online, you can accomplish this through several methods. Let's talk about each one.
You can convert another cryptocurrency to Tether easily through an exchange. You just need to make sure the exchange you're using supports the USDT pair with the cryptocurrency you hold. Examples of popular crypto coins with Tether pairs are BTC, ETH, SOL, KRRX, BNB, AVAX, LTC, XLM, LINK, MATIC and DOT.
If your favorite exchange doesn't have a USDT pair in your crypto, first convert your coin to another coin that has a USDT pair, then convert the new coin to USDT.
You can directly buy Tether with fiat money. Fiat money is any currency like the pound, euro and dollar that is backed by a government and issued by a central bank.
You can easily and conveniently convert traditional money to USDT on a cryptocurrency exchange. Just navigate to the appropriate section of the platform and initiate a "Buy" transaction for Tether. Choose the buying method you want and confirm your choice. Note that the options to buy USDT will vary depending on your country of residence.
That said, there are several ways to buy USDT with fiat money. Let's talk about the most common methods:
You can easily buy USDT with credit card on Kyrrex and other exchanges that support this feature. Most platforms support using cards from Visa and MasterCard.
This method also works for buying USDT with debit card as well.
You can also buy USDT with direct deposits from your local bank account. Again, this feature is only available in certain countries and regions. If this is your preferred method to buy crypto, consider whether a cryptocurrency exchange supports the option before signing up.
Once you've acquired your shiny new Tether coins, there are a number of things you can do with it. You have several ways to productively use your USDT on an exchange like Kyrrex.
As mentioned before, USDT is the most common pair for cryptocurrencies. You can use it to buy whichever popular cryptocurrency you're after.
On Kyrrex, simply go to Spot and exchange USDT with the cryptocurrency you want.
If you want to be more conservative with your investments, you can use your Tether holdings to earn passive income by earning interest on it.
On Kyrrex, you can lock your crypto into a savings program and earn interest just like you would with money in a bank. Simply go to Earn, choose your asset (USDT), select the contract term you like, choose the interest type, and click Create. Next, enter the amount of USDT you want to save. Once you've confirmed your savings, your USDT will start earning interest for you.
Crypto trading has brought about a whole other level of fortune and wealth creation. Compared to the traditional trading models and methods, crypto trading is positively revolutionary. Despite—rather, because of—the high incidences of volatility in crypto prices and valuation, a beginner in the trading industry can go up a couple of zeros in investment returns without stress.
The main thing in crypto trading, however, is not that the value of a typical crypto asset is unpredictable. No. The main bite to crypto trading is that there are so many ways to trade. The use of strategies and automated trading is just the top of the pack. But that is not the focus of this article.
The focus of this article is to show you an easy method that you can use to build a crypto trading bot. This method is easy enough for newbies to implement and relevant enough for experts to test and adopt.
The use of crypto trading bots has gradually become the heart of automated trading. Currently, the ideal way to increase the speed at which you monitor the market and widen your trading scope is by having crypto trading bots on hand. Recognizing this fact, software developers have made sure to create as many trading bots for crypto trading as possible.
However, as one would expect, there are a lot of counterfeit crypto trading bots available today. Thus, one way to save yourself from embarrassment on one hand and possible loss of trading funds on the other is to learn to build trading bots yourself.
Here are 8 of the most common steps used to build a crypto trading bot.
The core element of crypto trading bots is the code that they are written in. As you know, a crypto trading bot is not an actual robot, only the digital construct of one. Thus, how well the trading bot can function depends on the code (or algorithm) that underlies it. And this is why it is important to use a reliable programming language to build your trading bot.
Many popular programming languages are commonly used to build crypto trading bots. The most popular of these languages is Python. Others include C++, C#, Java, and R. Your familiarity with any of these languages should determine the one you choose to use eventually.
An API is the equivalent of a connector that lets your trading bot communicate with the trading market. Officially, API is short for Application Programming Interface, and it serves as the link between software applications so that you can ‘talk to’ the computer.
In the context of this article, a good API lets your trading bot interact with different exchanges. This way, the bot can ‘read’ signals from the crypto market and make decisions that crypto exchange platforms can understand.
Talk about crypto platforms and exchanges, this is where the trading bot you are building can truly shine. They are essentially platforms, centralized or decentralized, that allow you to interact with the trading market.
Registering with a dependable crypto exchange is important. For one, most crypto exchanges, the centralized ones, especially, require you to sign up with personal—often confidential—information. Nevertheless, the same way APIs allow your bot to interact with exchange platforms, these exchange platforms allow your trading bot to interact with the crypto market.
So, we mentioned programming codes as the core element of trading bots. This is true. However, you can only consider these the hard parts of the core, not the soft part. Trading strategies make up the soft parts of the trading bot core. Without these soft parts, the bot you build will have no direction.
There are many strategies that you can use with your trading bot. The most common ones include arbitrage (buying crypto units from one exchange and selling on another), momentum trading (using trends in the market to trade), mean reversion (using price ranges around the average to trade), and more.
You can decide on the strategy that best fits your crypto trading style and implement it along with your bot.
The operative structure of the trading bot you are building is another core element. This is the architecture or framework within which the trading bot can operate. It is the mathematical model over which the bot makes decisions.
Deciding on the exact mathematical model can also be a taxing exercise. You can consider it the combination of the programming code (as an algorithm) and trading strategy that we mentioned earlier.
So far, we have listed the different components that you need to build a crypto trading bot. Now, you need to assemble these components to have something tangible. This process is very important because it serves as the point at which you combine the algorithm with everything else.
Some bot developers generally use more than one professional programmer just to keep things going. This helps you cover all possible gaps. It is better than doing it yourself, so you can use Slack or Github to get professional developers.
The testing process is a feedback stage. It is the first step after you have developed the bot or a workable model of the trading bot. Because the bot runs on a mathematical model, there is always the possibility that the model is not accurate enough to be useful in the market. Therefore, you need to test it to determine the margin of error and correct it.
Moreover, this testing phase allows you to measure the risks involved in using the trading bot. As a result, whenever you use the bot (or recommend it to other crypto traders), you can have some level of assurance as to the extent to which it can work before uncertainty creeps in.
This is likely the most enjoyable part of the bot creation process. It is where you have tested it enough times to know that it is useful and relevant for actual trading. Thus, this is where you deploy it in the market and begin to use it for automated trading.
As you probably know now, using a crypto trading bot saves you a lot of trading time. However, building the bot yourself removes every uncertainty you might get from using the bot.
The main reason you should build the bot you use is that you know the bot best. You will not be surprised by whatever it does and can stay assured of its efficiency. Thus, the risks involved in using the bot you developed are never as high as the risks involved in using a third-party bot.
So, in summary, building a crypto trading bot gives you absolute control over the bot. By extension, you have more grasp of your investments and can better manage them through the bot.
Pionex is by far the most popular platform for trading bots. With Pionex, you get 16 free trading bots, each fitted with a different trading strategy. Due to how easy it is to use, Pionex emphasizes simplicity. So, you don’t have to be an Einstein to be able to make significant profits in crypto trading by using the bots.
BitQuant is a radical trading bot platform. Where other bots are only easy to use and extensive in the number of exchanges they work with, the BitQuant trading bot is super effective. So effective is it that you are guaranteed up to 20% monthly profits as long as you use the bot effectively. Moreover, the bot greatly reduces the risks of trading losses, so you don’t have to spend every minute worrying about what you will gain or lose.
Coinrule is another great place for trading bots. It is also easy to use and allows straightforward implementation of strategies. The best thing about the platform is that you get to use the bots even though you are on a basic plan.
Botsfolio is also solid in offering useful crypto trading bots. It also allows easy integration of trading bots with trading strategies. Moreover, there is a cool community of crypto traders that are always available to assist you when you have questions. It also gives you a guaranteed monthly profit range per time, but this is not as high as that of BitQuant.
Lastly, TradeSanta is a crypto trading bot platform where there are an unlimited number of bots for your use. Once again, ease of use is the priority, so you should have no problem plugging into the crypto market with the TradeSanta bots and getting solid returns on your investment.
And that is all you need to know about building crypto trading bots. The process is simple and requires you to have some knowledge of programming, yes, but nothing too advanced. And if you want to save time and effort, you can simply use any of the bots listed in this article.
Crypto trading is the new star in the corridor of trading. Since it emerged along with decentralized finance, NFTs, and other variants of blockchain technology, it revolutionized the trading floor. The volatility makes instant and large returns on investments possible. But this is also true for losses. Trading bots make the field somewhat even.
For crypto traders that use bots, maximizing profits and reducing risks is a simple thing. However, to effectively use crypto trading bots, you need to know them inside and out. This is one of the factors that set winning crypto traders apart from the others.
The aim of this article is to resolve questions about crypto trading bots. In it, we define crypto trading bots and show you how it differentiates automated from traditional trading. More importantly, the article shows you how these crypto trading bots work, their effectiveness, and great examples of these bots.
But first, what is a crypto trading bot?
A crypto trading bot is exactly what it says it is—a bot that trades crypto. Realistically, it is a digital robot (bot) made up of programmable algorithms. In other words, these bots are computer software that traders use to fill the gap and automate trading. The operative word, thus, is automate—meaning that you can use them for trading with significantly less effort than if you were trading yourself.
Crypto trading bots work by being able to interact directly with crypto exchanges on your behalf. They function as go-betweens and carry out every task you have delegated to them. As they are efficient, trading bots are able to manage your crypto account and trading activities. This is possible because of the existence of authenticating identifiers such as API (Application Program Interface) keys.
When you use crypto trading bots, you are fundamentally banking on their code to do your bidding. These scripts of code allow you to customize them or set conditions within which they can buy and sell on your behalf. Thus, with crypto trading bots, you can better detect opportunities in the crypto market via signal generation, reduce risks via risk allocation, and boost trading performance.
To better understand how crypto trading bots work, you should know some of their core characteristics and capabilities. The most common of these are:
A crypto trading bot’s operations are rule-based, meaning that these bots are programmable. Unlike human traders, trading bots are fitted with code that will run as they should unless they have been tampered with. These code scripts contain everything that the trading bot can do and will do. Thus, there is no room for surprises when it comes to the operations of crypto trading bots.
The implication of this characteristic is reliability and trustworthiness. You can ‘trust’ crypto trading bots, therefore, to run within whatever framework you set for them. This is the heart of the automation element of bot trading. It is also one of the reasons trading bots are popular and perceived to be effective.
Backtesting generally has to do with being able to use past occurrences to assess the present and the future. In other words, it is all about using historical data (back) to evaluate the outcome of a decision or outcome (testing). For crypto trading bots, the same principle holds: it is how well bots can ‘map’ historical trading data for decision-making.
Needless to say, backtesting is a core element of data-driven trading. Using crypto trading bots this way consequently affords you a significant degree of guarantee and confidence. This is another reason some traders rely on crypto trading bots. After all, backtesting with pen and paper can be tedious and error-ridden.
The generation of signals is a step process and capability after backtesting. It is simply the ability of the trading bot to identify trading ‘hot spots’ and ‘cold spots’ and make recommendations on this basis. Hot spots, in this context, are opportune periods and prices that fetch good profits. Cold spots, on the other hand, are periods and prices that demoralize traders.
When a bot has an effective signal generator, it can easily and promptly analyze data for decision-making. You can compare crypto trading bots on this basis, in fact, since some are better signal generators than others.
Risk assessment and allocation is the ability of trading bots to recognize not only the opportunities of trading but also the risks. In a way, this is the exact opposite of signal generation. In the same way that signal generation centers on profit-making, risk allocation revolves around risk reduction.
Risk assessment and allocation is one of the core elements of crypto trading bots. After all, the crypto market is a billowing river of uncertainties. Thus, having something that can tell you that this crypto investment has high risks and low returns is very useful.
Lastly, crypto trading bots are fitted with scripts of code that enable them to implement trading strategies and execute them. The operative word is automatic. In other words, once you get the trading bot to execute a particular strategy, you can automate the execution of that strategy. Of course, some crypto trading bots are known for the execution of particular strategies, that’s another relevant fact.
These strategies are the guidelines, in a word, of trading activities. Thus, while the developers of crypto trading bots equip them with rule-based code, you equip them with strategies. One allows them to run as trading bots, the other allows them to be useful tools for trading.
Trading bots are as effective as you allow them. A typical trading bot provides you with automated trading services for entry and exit points, and profit and loss margins. In effect, trading bots add efficiency, diversity, and extensiveness to your trading activities. With them, you can track more cryptos with less effort, and quickly spot investment opportunities ahead of time.
Once again, how much you can get from crypto trading bots depends on you. A trading bot like BitQuant, for example, can get you as high as a 20% guaranteed profit monthly. This allows you to rest easy as a crypto trader even though you spend more of your time pursuing other interests.
Other trading bots offer a multiplicity of services (recall the core characteristics/capabilities of crypto trading bots). However, some are unique in that they prioritize some of these services over others. Thus, knowing how to recognize great trading bots can take your trading game to the next level.
Crypto trading is a thriving industry. As a result, there are a lot of trading bots in the market, each fitted with a different set of advantages. Nevertheless, there are a number of trading bots you can rely on since they try to cover every aspect of profitable trading.
Pionex is likely the most popular platform for crypto trading bots at present. In fact, there are 16 such trading bots on Pionex, and these are the free ones. Each of these bots, however, is fitted with a different defining feature. Thus, variety and diversity is the main thing you get from using Pionex crypto trading bots.
Cryptohopper is another incredible platform for crypto trading bots. The bots emphasize automation over anything else and use their AI (artificial intelligence) capabilities to implement a variety of trading strategies. Cryptohopper trading bots also emphasize diversity and flexibility, so using them means that you get more out of crypto trading effortlessly.
Where other trading bots offer only cryptos and crypto exchange diversity, BitQuant adds a guaranteed periodic profit margin of 20%. The emphasis of this particular bot is trader convenience. Thus, the platform ensures that your assets on the crypto trading floor and market are secured, risks are low, and trading is stable and profitable. Moreover, the customer service on this platform is very responsive, so you also get access to trading support from professionals.
Trality is another trader’s favorite when it comes to winning crypto trading bots. It is especially appreciated by crypto traders who can use the Python programming language. Thus, if you know Python, you will get much more out of Trality than many traders get from other trading bots. Nevertheless, the bots are also good for beginners and traders that know nothing about Python.
CryptoHero is one of the best crypto trading bots for beginners. The bot services, interface, and even AI integration all ensure that you get a seamless experience without drowning in technical detail. Like the other platforms listed in this article, CryptoHero offers all the core components of trading bots with AI-enabled efficiency. It is one of the best in the industry.
That is all you need to know about trading bots to become a profitable crypto trader. Thus, and as you now know, crypto trading bots are not only efficient but also save you from rigorous mental gymnastics. Overall, using them allows you to easily increase your trading scope, reduce risks of dream-capsizing losses, and boost your earnings.
Opera's acclaimed Crypto Browser has finally found its way to iOS devices, paving the way for iPhone and iPad users to access decentralized browsing with a built-in crypto wallet.
The mobile browser was previously available on Android devices only. The latest development means users can now access web3 on all major mobile phones and tablets. The browser is also available on Windows and Mac.
The dedicated crypto browser is Opera's response to the need for an all-inclusive web environment where new and veteran crypto enthusiasts can interact with dApps in an efficient manner. The browser's list of supported blockchains includes Ethereum, Polygon, Celo and Bitcoin. The browser lets you do all your crypto without the need to install extra apps or extensions. You can even use third-party wallets in the app, making it an all-in-one expansive crypto experience.
The Opera Crypto Browser provides deeper functionality for crypto enthusiasts to utilize. Opera says users can use the browser as their one-stop-shop for cryptocurrency-related information thanks to the Crypto Corner. This curated and integrated newsfeed-like feature provides instant and updated access to the latest happenings in blockchain. In one spot, users can learn about the newest airdrop campaigns, crypto news, events, calendars, NFTs, and get educational content in written, audio and video forms.
Here are some other features of the browser:
“The Opera Crypto Browser Project was built to simplify the Web3 user experience that has often been bewildering for mainstream users. Opera believes Web3 has to be easy to use in order to reach its full potential and a mass adoption,” Jorgen Arnesen, executive vice president of Mobile at Opera, said in a statement.
To this end, the company has partnered with DeversiFi and StarkWare to integrate Layer-2 into the browser. This provides users to much faster, low-cost transactions and instant trading. This feature will be available on both the iOS and Android mobile apps and is part of Opera's commitment to making web3 easier for everyone.
Opera's inclusion of Layer-2 tech will also help address concerns regarding the high power consumption of blockchains like Ethereum.
So, the iOS version of Crypto Browser has landed, great. But what does it mean, in practical terms, for the everyday user?
Firstly, it means that you no longer need to download several applications to handle different aspects of your crypto experiences.
Do you want the latest crypto news, you can find it in Crypto Corner.
How about instant access to your Ethereum wallet? No, you don't need to download Metamask: You can access your funds with the integrated wallet here.
Fine, you'd like to connect your wallet to your favorite dApp? Say no more Crypto Browser is there for you.
In essence, the browser simplifies what can be a stressful exercise of using multiple apps to keep tabs on things and do stuff.
The official Opera Crypto Browser is now available on the Apple App Store and it's absolutely free! Hidden charges? Nope. In-apps purchases? Nah.
Simply open the Store, search for the app, install it, and enjoy next-level web3 service on a mobile browser.
You may be interested in secure crypto trading Kyrrex app:
This in-depth guide explains the intricacies of token airdrops so you can get free tokens from DeFi projects
Airdrops are a common way for crypto projects to grow in popularity and reward dedicated users and supporters. A crypto drop disburses the project's tokens to users who meet certain eligibility conditions.
These eligibility requirements vary and can be based on social engagement, transactions made, or longevity of interaction with the platform.
The best airdrops come from bridges, ZK rollups, DeFis and other projects built on Layer-1 ecosystems. Researching new protocols within popular emerging blockchains is a good way to net valuable tokens for free.
Airdrops have become more frequent in the crypto space. These token giveaways contribute massively to the growth of the cryptocurrency ecosystem by attracting new users and investors.
A token drop involves disbursing tokens for free to those who qualify to receive them. In most cases, the qualified participants are early adopters of a project. Sometimes, the project rewards them for helping to spread the word on social media. An airdrop can also be given as a reward to holders of another token.
Many new decentralized application (dapp), decentralized finance (DeFi), metaverse and NFT protocols implement some form of airdrop as a way to get the ball rolling and quickly become relevant. The distributed tokens are used for a variety of narrow functions such as governance, utility and anti-manipulation by whales.
The right airdrop can provide a lucrative opportunity for recipients. In recent times, a few projects have distributed airdrops worth thousands of dollars in value. Rarely, these come out of the blue; often, they're highly anticipated and competitive drops. In airdrops, as with general token trading, getting in early is the name of the game.
Many DeFi protocols have gone on to distribute airdrops for their earliest community members. Many people who traded on these platforms at the beginning have gotten rich from token drops.
As a result, the spotlight has turned to popular and thriving protocols currently without a token. Swapping, staking and other DeFi activity on these platforms has spiked in anticipation of retrospective token airdrops. Following the example of Ethereum Name Service (ENS) , retrospective drops have become the favored medium by tokenless protocols.
But what's the best way to qualify for big token airdrops? There are a number of good strategies to employ and get eligible for drops potentially worth thousands of dollars with little to no upfront investment.
There is a crypto airdrop every single day but most of them are crap. The airdrop mechanism has been hijacked by all sorts of low-quality and bogus projects as a shortcut to gaining followers. Therefore, to find the real quality airdrops out there, you can use the following strategies,
Scouting for legitimate airdrops will naturally increase your chances of nabbing at least one. The best source of potential drops are popular protocols that haven't issued a token yet. This doesn't mean they will definitely have a token in the future but the potential is there.
One quickfire way to find notable projects is to check individual protocol TVL on popular blockchains like Ethereum, Binance Smart Chain, Solana, Terra, Cardano and Avalanche. Target projects with considerable locked liquidity that don't have a token. Look for news and rumors that suggest a token is in the pipeline.
Social media and dedicated crypto websites are a great source of ongoing and rumored airdrops linked to quality projects. Important crypto sites like CoinMarketCap and DappRadar often partner with projects to host airdrop events. You can also follow respected accounts on Twitter, YouTube and other social media platforms to learn about rumored airdrops.
Several popular crypto platforms are expected to launch their own tokens and distribute airdrops to users in 2022. The most promising are Layer-2 solutions on Ethereum like Optimism, Arbitrum, Zapper and ZkSync, NFT marketplaces like OpenSea, Foundation and Valuables, cross-chain bridges like Hop Protocol, and decentralized exchanges like Cowswap and Clipper.
There was a time when new crypto projects were happy to airdrop tokens to whoever showed interest, liked and shared their social media posts, or made token transactions. Now with the rapid rise of users in crypto, this is less likely to be enough to secure the most lucrative airdrops.
An effective way to position yourself for airdrops is to interact with new and promising tokenless protocols. New projects regularly launch on popular blockchains like Ethereum, Fantom, Solana, Cardano and Near. Interacting with these before they go mainstream and get more attention is a great way to become eligible should the protocol deploy a token drop later on.
Connect your wallet to the project and interact with it as much as possible. If it's a DeFi project, you could use its swap function, add liquidity to its pools, or use its farm offerings. You should immerse yourself in its various features as much as possible to increase your chances.
The rise of retrospective airdrops has also led to an increase in sybil attacks — a phenomenon where people try to secure airdrops by carrying out small one-time transactions from multiple wallets.
Hence, simply being an early user and interacting with the platform once or twice is no longer enough in a majority of cases. Airdrop eligibility conditions are now stricter across the board.
Gone are the days where users easily got thousands of dollars from ENS, dydx and Uniswap token drops.
A good example is ParaSwap's recent airdrop. It went to users who had used the platform to transact at least 5 times. CowSwap, meanwhile, announced that only users who'd made an aggregate trading volume of at least $1000 across at least 3 trades will be eligible for their upcoming token drop.
Holding the right NFT can make you eligible for free airdrops. Holders of popular NFTs like Bored Ape Yacht Club have enjoyed several drops in the past and will get more in the future.
Get active in the NFT space and focus on projects with big and active communities. It's one of the best ways to land airdrops which can be either new tokens or new NFTs (or both).
Since the goal of pursuing airdrops is to earn money, you can also look at NFTs that have lots of benefits attached to holding them. For example, you can get up to 55% APY simply by holding these NFTs for a set duration.
Staking and farming tokens are a nice way to earn free tokens without stress. Certain decentralized protocols reward users with token drops for staking, farming or liquidity mining.
Some layer-1 networks (e.g. Cosmos) implement stakedrops, airdrops rewarded to those who stake the blockchain cryptocurrency (e.g., ATOM) on the network.
The beauty of airdrops is that no two are alike in all respects. There are lots of other ways to get lucrative drops other than those mentioned above.
A project could just randomly decide to airdrop its tokens to users of a cryptocurrency exchange who also hold the exchange's utility token like BNB, KRRX or KCS. This usually happens as part of a deal to list on that exchange. Here, the user happens to be in the right place at the right time.
Some projects implement an airdrop on an FCFS (First Come First Serve) basis. A date and time is given and people try to claim before the allotted items run out. An example is the recent Pepsi Mic Drop NFT release.
All in all, it's worth striving for a rumored airdrop when it's sure to be very lucrative. Your target should be popular and successful layer-2 protocols on major networks like Ethereum. The emerging GameFi and metaverse spaces also offer rich potentials for rumored airdrops.
It's worth keeping in mind that some airdrops won't be worth the hassle to obtain them. The vast majority of drops aren't worth the bandwidth used to obtain them. That's why it's important to stick to safe airdrops promoted by legitimate sources.
With airdrops, timing is key. Depending on the type of tokens, you can either decide to sell off at the height of hype or hold in expectation of more pumps in the future.
Starting with Bitcoin, cryptocurrencies have made many people rich and it is normal to want in on the action. However, investing in crypto is like riding a tiger so you need to create a well-balanced crypto portfolio built on prudent allocation and diversification.
This guide discusses the things to consider when creating a portfolio of digital tokens. By studying the factors that should influence your choices, you can put yourself in the best position to benefit from the current crypto boom.
A typical portfolio consists of financial investments like bonds, equity, treasury bills and ETF instruments. It's a collection of investments spread across different asset classes. A crypto portfolio, on the other hand, consists of just one asset class—cryptocurrencies.
Within this asset class, however, are different types of cryptocurrencies, and the goal is to spread investments in a way that optimizes overall gains and minimizes the impact of a single failed investment.
A typical crypto holding can consist of Bitcoin, established altcoins like Ethereum, emerging coins like Solana, new coins like Kyrrex (KRRX) and speculative tokens from an ICO or IDO, and financial crypto products like options or leveraged tokens.
The best crypto portfolio allocation is a matter of both perspective and debate. Some rely on concentrating their holdings among a small number of popular, well-backed coins. Others prefer spreading risk among a larger basket of coins to maximize opportunities.
Ultimately, each investor's choice should reflect their broader aims in the cryptocurrency market. Those in it for the long haul might consider a bigger portfolio. Casual traders may eye a few trending coins for short-term gains.
When creating a diversified cryptocurrency portfolio, a few ground rules should be observed.
Higher risks can mean higher rewards. It can also mean bigger losses; so, spread your risk accordingly. Identify high, medium and low-risk coins and spread your investment appropriately.
In general, you should go for investments that promise steady gains even if it takes a little longer to materialize. Don't focus too much on pump-and-dump coins or FOMO just because others are doing so.
Stablecoins can be your get-out-of-jail card so try to have some at all times. You can quickly exploit an uptrend or convert it to fiat in an emergency. Stablecoins are also your gateway to many platforms on different chains because of their "agnostic" nature.
When you make gains, practise converting some, if not all, your initial principal to a stablecoin to protect yourself from a sudden dip.
Go into crypto investment with a good plan but don't be afraid to switch things up as the things evolve. The market may not play to your expectations, adjust your portfolio spread to cope with the situation.
Excess greed can cause investors to lose all their money. After making some gains, convert a portion to a stablecoin or take it out of crypto altogether. Set realistic targets and be pragmatic about unexpected windfalls.
Avoid revenge trading as well. If you lose lots of money to a tanking coin, don't try to win your money back immediately. Be rational about things. Analyse the token and move on if its long-term indicators don't favour you.
Do your own research. If a coin intrigues you, go undercover. Who are its promoters? How has it done so far? What is its max supply and tokenomics? What uses does it have?
Don't just buy into hype or rumour; find the substance. Crypto analysts aren't infallible so you should complement their enthusiastic declarations with your own research.
The crypto space has more tales of woe than triumphs of joy to share. It's the wild west out there so only put in what won't break you financially.
From the start, decide what proportion of your finances to invest in this sector and stick to your decision. Sometimes, you may feel like putting in more money to take advantage of new opportunities. Those occasions should be rare. Instead, focus on enlarging your portfolio by redistributing gains.
There are different ways to diversify your crypto holdings and spread risk. You can invest in different tokens, add crypto derivatives to your portfolio, or buy into a crypto fund.
In general, you can profit by investing in strong-performing coins across various blockchains and utilities.
Payment coins are the big daddies of the crypto sphere. The original aim of cryptocurrency is to transfer value while bypassing centralized regulation. The initial rush of coins that followed BTC had the same purpose.
These days, most of them are less well-known than before. While several have faded from the scene, a few still primarily deal with payments.
Apart from Bitcoin itself, coins like Litecoin (LTC) and Bitcoin Cash (BCH) remain good investment vehicles. Perhaps the most popular of the non-BTC payment coins is XRP, from Ripple.
Payment coins maintained their appeal from the first generation into the current crypto boom. They represent flexibility of use: you can either hold them long-term or use them to make payments.
Stable coins or stablecoins are an important type of cryptocurrency that should be in everyone's portfolio. A stable coin is pegged to the value of an underlying asset. In most cases, this asset is a globally-regarded currency like the US dollar. A stable coin can also track the value of a rare asset like gold.
Most familiar stablecoins use the USD as the underlying asset. The coin rises as the dollar rises and falls as it falls. Stablecoins enable investors to quickly switch from a volatile cryptocurrency.
Holding a stablecoin also enables you to quickly take advantage of market situations instead of wasting time converting fiat. Outside BTC, most crypto coins have a stablecoin as one of the trading pairs; hence there's no need to convert to something else before making a purchase.
With a stable coin, you're not looking to reap gains in the asset's value but get stability. However, the type of stablecoin you have should be related to the platforms you transact on. Some platforms support certain stablecoins but not others.
You can buy and trade stable coins on Kyrrex crypto platform.
A blockchain coin is a cryptocurrency that serves as the native token of a blockchain. A blockchain is the underlying technology that allows coins to be bought and sold anonymously. Each blockchain has a record of every transaction made on the network.
A blockchain coin is used to make payments for transactions conducted on the network. People who verify and approve exchanges made on the Ethereum network are paid in Ether, for example. Popular blockchain coins generally see their value skyrocket as the underlying network gets more traffic. Hence, they have become a popular instrument for crypto investors.
This type of crypto coin is among the safest when thinking about your crypto portfolio allocation. Blockchains are massive ventures that involve lots of commitment and resources, especially from institutional investors.
Security tokens are best thought of as coins pegged to the value of a traditional security on the stock exchange. They behave like stocks in many ways and are subject to the same regulations.
Any platform that offers a security token has to first get the permission of the local regulators. It is illegal to offer a collateralized security product otherwise.
A security token can represent shares in a company, bonds from a project, or rights to vote. They're a convenient way for individuals to acquire equity without going through stockbrokers.
Utility tokens act as the gateway to a product or service. In that general sense, blockchain coins are also utility tokens since you need them to pay gas fees when using the relevant network.
In a narrower sense, an utility token provides access to the issuing platform's services. Many exchanges have a token that can be used to pay transaction fees. If you make use of a platform regularly, holding its utility token is probably a good idea. You'll get to enjoy discounted trading, higher interests, and other perks.
Governance coins generally overlap with utility tokens and blockchain cryptocurrencies. Some platform tokens have governance as one of the benefits for holders.
For a governance token, anyone holding a certain number of the tokens gets to have a say when changes are being made. For example, ETH holders can debate and formulate proposed changes under Ethereum Involvement Proposals or EIPs.
A meme coin is linked to a theme or joke rather than a serious use case. A meme coin holds no intrinsic value but is created for fun.
That said, some meme coins, especially Dogecoin (DOGE) and Shiba Inu (SHIB), have turned out lucrative for speculators who got in at the right time.
Crypto coins are just one side of the equation when you want to make a crypto portfolio. The other side is investing in crypto derivatives and other financial products linked to the crypto market.
When holding crypto coins the traditional way, your profit or loss is tied to whether the coin rises or falls. With crypto derivatives, you don't need to actually hold the underlying asset to benefit. However, trading derivatives is a bit more complex than traditional spot trading.
In crypto futures, you simply bet that the value of the underlying asset will go in a certain direction. If your bet is correct when the duration specified in the futures contract is over, you make a profit. If you guessed wrongly, you make a loss.
Futures products are offered in many popular exchanges. There are weekly, monthly, quarterly etc. contracts. If you believe the price of the asset will go up by the expiration date, you long the contract, and if you believe it will go down, you short it.
Options contracts give you the right to buy or sell the underlying asset at a specific price in the future, regardless of the actual price in the future.
A call option gives you the right to sell the contract and a pull option gives you the right to buy it. Either scenario is optional as you can choose not to exercise the right you've acquired. However, if you don't exercise your right, you will forfeit the premium paid to acquire the options contract.
Both futures and options contracts can be perpetual. This means that there is no expiration date and the trader can hold these contracts as long as they like, subject to leverage, margin and liquidation constraints.
If you trade derivatives, they will be the riskier parts of your crypto portfolio because of their unique constraints. Hence, do your own research and make sure you're knowledgeable about coin and market trends.
An exchange traded fund or ETF is an investment scheme that mimics the value of an asset or group of assets. With respect to crypto, an ETF tracks the price of the underlying coin or group of cryptocurrencies.
Due to regulation, there aren't many crypto ETFs around but that is slowly changing. Investing in a Bitcoin ETF lets you hold the world's biggest cryptocurrency without dealing with an exchange or any complicated security or regulatory steps. Via the ETF offering, you simply hold a share of BTC and can buy and sell it on the stock exchange like you would a regular stock or bond.
Another way to diversify your crypto platform is by investing the coins you hold in products that generate yields. These avenues include farming, staking, lending and providing liquidity
There's a wide variety of yielding products for different coins, on different platforms, and with different yields. Some pay interest in more of the token, some in a stablecoin, and some in another digital token.
Now that you know the dos and don'ts of creating a cryptocurrency portfolio, you can go ahead and set one up with confidence. Whether you're aiming for the best diversified crypto portfolio or just want to hold one or two coins, the following steps will aid you in that task.
Obviously, you can't just stroll to your bank or local brokerage to buy crypto. Most banks don't seem interested right now and the law wouldn't allow it anyway.
But, we assume you're ready to take the plunge. Then, read on.
Bitcoin and popular alts have been rising recently so it can be difficult to keep your enthusiasm in check when deciding how much to invest. But, decide you must.
As stated earlier, use only a small percentage of your overall investment funds in cryptocurrencies. If you let greed influence you too much you'll have to deal with an equivalent dose of fear.
Choose a small amount, say 10-15% to make a crypto portfolio and stick to that.
Bitcoin is the king of crypto but that doesn't mean you shouldn't cast a wider net. Study the different types of investment options explained earlier and decide how much to allocate to each crypto type you choose.
The best crypto portfolio allocation involves coins across different blockchains and movement types. Some coins move along with Bitcoin so adding only those to your portfolio doesn't make sense.
Choosing different coins with different movement trajectories allows you to spread risk more effectively. If some of your holdings disappoint, others will be there to lessen the pain with their own gains.
All in all, consider the following when assessing what crypto coins should make up your initial portfolio:
These indicators will help you create a balanced crypto portfolio template. Remember that you can start with just a few tokens and slowly enlarge your portfolio as your risk appetite grows bigger.
After deciding your crypto portfolio allocation, the next step is to buy the tokens. This step is what discourages many individuals from buying cryptocurrencies. Most people are used to buying financial products the traditional way so having to do things personally is a turn off.
Until there's more mainstream penetration or governments relax the rules on crypto trading, you'll have to make do with buying crypto yourself on a centralized or decentralized exchange.
A centralized exchange like Coinbase, Huobi or Kyrrex won't let you trade crypto if you don't tell them who you are. Although you lose some anonymity, you gain a level of security and confidence that just isn't there if you use an anonymous exchange or P2P platform. These exchanges provide a wide variety of coins to choose from and custodial wallets to hold them in. They are closely watched by regulators so you can be assured your funds are safe.
Unfortunately, an exchange might not have a specific token you seek. This is where decentralized exchanges come in. These platforms let you buy a token for which there is liquidity. Also known as swapping apps, you can exchange various tokens on the same blockchain. For example, Uniswap supports ERC20 token swaps while Raydium performs the same role for Solana SPL tokens.
You can also use P2P exchanges like eToro or Paxful to directly buy crypto from another user.
If you're more into secondary crypto investments then a derivative-focused platform like FTX or Dydx Exchange will be right up your alley.
Of course, there are even more ways to invest in cryptocurrency out there. If you want to put your money in with as little risk as possible you can give it to an ETF to manage on your behalf. Crypto brokerages like Greyscale and ProShares offer various products, mostly based on Bitcoin.
Just like you need a bank account to hold traditional currency, keeping crypto tokens yourself requires a wallet. A wallet on a blockchain does exactly what a bank account does, but with crypto. Except that it does much more than that.
An important part of how to diversify crypto portfolio is thinking about the right storage for your coins. This decision cannot be made in isolation.
It's important to know where your crypto coins actually are. They are on the blockchain, rather than in any wallet. A wallet is just a way to access your coins, using your private and public keys. The public key is your wallet address and the private key is a cryptographic combination unique to each wallet on the blockchain.
Your wallet choice is important for a good managed crypto trading. Here are some factors to consider.
A custodial wallet vests the private keys in the hands of a third party. You're not the only one with access and it's less secure but more convenient. Most people experience a custodial wallet when dealing with a centralized exchange. The exchange holds your coins for you in trust and releases them when you wish to trade, withdraw or invest them in a platform product.
A Non custodial wallet is held by yourself. Only you knows the private keys and only you can manage the wallet. It's more secure but may be less convenient.
Investors who envisage trading actively with their holdings might be better off sticking with custodial wallets for more rapid access. On the other hand, if you wish to keep your coins for the long haul, moving them to a non custodial wallet can keep them safe from potential hacks.
Do you want the convenience of cross-platform managed crypto trading? If your answer is yes then you will probably choose a wallet that has web, mobile and possibly desktop versions.
On the other hand, web-only wallets may be safer and desktop-only ones even more so.
Hardware wallets are the most secure of the lot. With them, you store your coins offline which makes them inaccessible to hacks and other security threats. As they're less convenient, they're better suited for long-term crypto savings. Web and mobile wallets provide greater flexibility to interact with decentralized applications.
A multichain wallet supports multiple addresses across different blockchains. It is the most convenient type of wallet available. With a multichain wallet, you can hold, receive and withdraw different tokens from different blockchain protocols.
This doesn't mean that any multichain wallet will support all the blockchains that exist. Its main selling point is the ability to access your token balance on every supported blockchain with a single passphrase.
Trust Wallet and Coin98 are examples of wallets that support multiple networks including most popular chains, including Bitcoin, Ethereum, Binance Smart Chain, Algorand, Solana, Fantom, Avalanche, Terra, Cosmos, Tron and TomoChain.
With these, you can track your cryptocurrency diversified portfolio across several networks easily. However, if your holdings are confined to just one network, you can use an intra-blockchain wallet instead. These include Algorand for the Algorand network, Sollet for Solana tokens, MetaMask for Ethereum and TronLink for TRC20 tokens.
Just like you'd like to know how your traditional investments are doing, you should also keep an eye on your crypto portfolio. You can log into your various crypto platforms every now and then to check on them. You can also delegate the work to crypto portfolio trackers.
Here are some recommended platforms for tracking your crypto holdings:
CoinMarketCap is regarded by many as the best crypto portfolio app. To use the app on web or mobile, manually add the coins you wish to monitor. You can even input your purchase price to track your gains or losses.
Like CmC, it's a fantastic crypto tracking app. You can search for any popular coin and get detailed information on its price, trends and tokenomics.
Delta is arguably the best crypto portfolio app for mobile users. It has dark mode and a streamlined interface for easy tracking. It supports up to 7 exchanges and provides detailed analytics and live news for users.