The crypto industry has been undergoing a lot of changes in recent times. From the global emphasis on market regulation to several prominent crypto exchanges packing up as a result of perceived fraud, botched crypto projects, and many others, the industry has had to do a lot of adjusting to present-day realities. However, with these adjustments are prospects for users on their toes for a bite of the crypto cherry.
In this article, we will explore some of the information that would help you increase your chances of establishing yourself in the crypto industry. Specifically, we will introduce you to the idea of white label crypto exchanges, highlight some of their benefits, show you how to create them, and also point out 3 crypto fintech companies you can reach out to for help.
If you don’t already know, a white label crypto exchange (also known as a ready-made, ready-to-be-deployed, or template exchange) is not the same as the crypto exchange platforms that emerged with the popularization of blockchains. Instead, these exchanges are yet-to-be-deployed platforms that you can purchase and modify to your liking. Essentially, they allow you to become the owner or manager of a crypto exchange platform.
To further help you differentiate between regular crypto exchange platforms and the white label variant, here are 3 areas in which each type is unique.
The features on the regular crypto exchange platform are widely different from those on a white label crypto solution in two ways. The first way is in the area of diversity and the second is in the area of functionality. Concerning diversity, regular crypto platforms are fitted with many features for crypto users, from intuitive interface options (web, desktop, and mobile, for example) to liquidity hubs and dynamic wallets. Few of these features can be found on template exchanges unless you have access to options from companies like FintechService. Also, on these ready-to-be-deployed options, these features are almost always in a dormant state until the time of deployment.
Regular crypto exchange platforms are ‘online’ in the sense that users can access them and utilize them for trading activities and other crypto-related purposes. This means that a user can register for a regular crypto exchange and employ it immediately to trade, learn about trading, or anything else. On the other hand, users cannot immediately trade on white label crypto exchanges or utilize them for anything. This is because they have not been deployed. Therefore, until template crypto solutions have been purchased by users like you, tested, and deployed, they will remain ‘blank’ and unusable.
As we have shown already, a regular crypto exchange is active. One of the implications of this is that it takes a lot of time and technical prowess to change something on the exchange. Of course, a user registered to an operational crypto exchange platform cannot command or implement changes—they are called ‘users’ for a reason. On the other hand, template crypto platforms are modifiable. Even though they are referred to as ready-made, the fact that they are not online means you can still change a lot of things about them. This possibility of personalized branding is why many users like you have decided to rely on crypto fintech companies to own and manage crypto exchanges.
For an average crypto user, the biggest benefit of a white label cryptocurrency exchange platform is the possibility of branding. You should always choose to own a template crypto platform over existing regular platforms because of the high technical support you will get throughout the operation of the exchange. Furthermore, joining the march to own and deploy a white label crypto solution offers you the opportunity to learn a few things about how crypto exchanges are made. This will help you in the long run as it would distinguish you from other users.
As template crypto solutions are perpetually in a ready-to-be-deployed state, smart web/software developers make sure to update them with industry-standard security measures. Say that there is a type of malware released by cybercriminals to steal funds from existing crypto exchanges, exceptional developers would build protection against such malware into their ready-to-be-deployed crypto platforms. Thus, once you acquire these platforms, you would not have to worry about paying excessive white label crypto exchange prices due to the need to upgrade the platform to provide up-to-date security for user data.
Template crypto exchanges offer the advantage of continued support after deployment. If you were to purchase an existing and already running crypto exchange platform, you will likely lose the support of the original developers. You may not even want them to stay too long onboard as a way of protecting your exchange. You don’t have to worry about this with ready-to-be-deployed crypto exchanges. If you want, the developers can continue to assist you in supervising the platform while it is running. However, this usually depends on your agreement with the crypto exchange builders.
A white label crypto exchange platform offers endless possibilities. If you are an established programmer yourself, you can simply purchase this platform and then proceed to modify it with the most advanced features you can think of. And if you know nothing about coding and the ABCs of crypto exchanges, you can also engage the services of accomplished developers and scale your crypto platform. Just like how novel AI solutions like ChatGPT are proving that scalability is doable across different areas of computing, ready-made crypto platforms offer options for innovation.
Choose a Crypto Exchange Builder: Different crypto exchange developers focus on different things. Some are proficient with blockchain solutions that have little to do with crypto trading, while others are great at designing NFT marketplaces. It is your responsibility to know which is which and reach out to them.
Outline Preferred Features: Once you have started to engage your preferred crypto exchange developer, you will most likely be given a script that contains the features of the available ready-made crypto exchanges. If these are not to your liking, it is at this stage that you inform the developers and see if they can implement these changes.
Negotiate the Particulars of the White Label Crypto Exchange Price: An important consideration for getting your template crypto solution is the price. To be fair, crypto exchanges are generally expensive, and asking a crypto fintech company to develop one for you may cost upward of $100,000. However, ready-made crypto exchanges are usually cheaper. So, if you are clear about what you want, you can get a reasonable white label crypto exchange fee.
Inspect the White Label Cryptocurrency Exchange Solution: The next thing to do is inspect the available template crypto exchange solution that meets all your preferences. Look out for bugs and other coding issues.
Supervise, Adapt to Market Demands, and Improve: Once you find that the white label crypto exchange is good enough, you can go ahead and deploy it. The responsibility to supervise it also falls to it, unless you want to outsource it. Whichever you choose, make sure to adapt to market demands and improve the features so that your users have nothing to complain about.
There are many, many crypto exchange builders around. The top white label crypto exchanges of 2023 are naturally from these developers.
FintechService.one is great at developing everything crypto. The company has been operational for more than 3 years and completed over 16 crypto-related solutions for pressing issues. The ready-made crypto exchange platforms from FintechService are some of the best around because they are fitted with virtually every important feature. Also, the company is efficient and will require no longer than 3 weeks to complete your project. Its fees are also reasonable, so you can create a dynamic and personalized crypto exchange platform from its white label options.
Crypto Next is another good crypto fintech company. It is particularly compatible with small businesses with a focus on simplicity. Therefore, Crypto Next is your best bet if your market segment covers SMEs (small and medium enterprises).
Xooa is special because it is known for its focus on NFTs (non-fungible tokens), gamification, and other emerging areas in the metaverse. Like FintechService, Xooa has also been around for a while, so you can benefit from its experience. Also, it serves small businesses as well as individuals.
Taking the time to look for a good crypto fintech company to purchase a white label cryptocurrency exchange solution from is a smarter choice than joining an auction for existing and established exchange platforms. The benefits of the former choice have been listed in this article, as well as how you can start serving other crypto users by relying on the ready-to-be-deployed variants of these crypto exchange platforms.
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.
Our regulated crypto-fiat ecosystem is proud to announce its official partnership with Valhalla Fighting, a popular bare-knuckle fistfighting organization from the Czech Republic.
Valhalla Fighting is known for its intense and action-packed fights, featuring some of the most talented and skilled fighters worldwide. This new partnership will provide Kyrrex users with exciting new opportunities and exclusive access to one of the world's most thrilling and adrenaline-fueled sports.
The following fights will take place on March 4, 2023 at the Unyp Arena in Prague and will feature 13 bouts with fighters from various countries, including the Czech Republic, Ukraine, Norway, Germany and Lithuania.
The main event of the evening will be the highly anticipated bout between Martin Horsky and Marian Tuma, two of the most talented fighters in the Czech Republic. Fans are eagerly awaiting this fight to see who will emerge victorious. Everyone can enjoy this show in the official broadcast on various TV platforms, including the Czech O2 in pay-per-view format.
At the same time, this new partnership with Valhalla Fighting is part of Kyrrex's expansion strategy to partner with various sports organizations and bring new and exciting opportunities to our users.
Recently, our team announced a new partnership with tennis legends Martin Di Nenno and Franco Stupaczuk, and now it continues to win the hearts of sports fans.
Stay tuned for more exciting activities and announcements!
Your Kyrrex 💚
Ten years ago, cryptocurrency was a niche concern that most people ignored. Now, everyone is angling for a bite of the cake. Governments are thinking of ways to impose regulations and tax the industry. Venture capital has plowed in billions of dollars in expectations of big returns down the line. Various big and small outlets have added crypto to their payment systems.
Colleges and universities have also got in on the act, as crypto continues to grow in recognition and acceptance. For a long time, the involvement of educational institutions in crypto wasn't always salutary. Criminal organizations that attacked school networks often demanded that the universities pay the ransom in crypto. In many instances, the affected schools complied to get their networks restored quickly.
Now, this is changing. With better security protocols in place to protect schools from crypto-demanding hackers, attention has turned to the more positive roles and uses of blockchain technology in education.
In this article, we outline several ways crypto and blockchain technology is transforming interactions between universities and students and donors.
It is worthwhile to situate the growing use of crypto in schools within the overall social trend. In recent years, crypto adoption has grown among the public, with the largest segment of new converts being young consumers. According to a CNBC report, 20% of US consumers have used cryptocurrency in some form. Another report by Ypulse found that 28% of the 13-39 age demographic have bought at least one crypto token. A sister report discovered that interest among that age group in non fungible tokens or NFTs peaked at 38%.
This increased attention to crypto isn't reflected in the industry's financial standing at the moment. Because of the global recession and implosion of some big players, the total capitalization of cryptocurrencies has shrinked from a peak of $3 trillion in November 2021 to just over $800 billion one year later.
Given the current gloomy climate, one might wonder why universities would want to have anything to do with crypto. Yet, research has clearly shown that tertiary colleges continue to utilize the technology in ways that benefit them. Let's look at 3 of these ways.
Schools and colleges are getting more flexible in tuition payment options for local and international students. Some have included cryptocurrency in their list of accepted mediums of payment. Lucerne University of Applied Sciences in Switzerland has been accepting bitcoin for tuition payments since 2017. Bentley University, a private school in Massachusetts has partnered with cryptocurrency exchange Coinbase to accept tuition payments in bitcoin, ethereum and USD Coin.
Some universities restrict cryptocurrency payments for tuition to certain courses, perhaps as a test run for a schoolwide implementation. The Wharton School of the University of Pennsylvania stated that enrollees to its education online certificate program in Economics of Blockchain and Digital Assets can pay program fees with cryptocurrency.
These schools recognize that paying tuition with crypto is easier, faster and cheaper compared to traditional payment methods. And as school admissions become more diverse because of the upsurge in international applications, cryptocurrency is an inexpensive method to democratize payments. By letting non-local students pay using bitcoin, universities can receive payments on time and avoid the multi-day delays synonymous with cross-border payments.
Cryptocurrency is very volatile and universities must find solutions that safeguard the value of tuition received via digital currency. Each crypto-accepting institution deals with this differently. Some, like the University of Nicosia in Cyprus, immediately change the crypto into fiat.
As crypto adoption among schools keeps growing, one imagines consensus will gravitate towards a more stable cryptocurrency like USD Coin (USDC) as the cryptocurrency of choice for tuition payments.
More and more gifts and donations are being paid in digital currency, not just to universities, but to donation-eligible organizations at large. Fidelity Charitable, the largest grant-maker in the US, received $331m in cryptocurrency donations.
Cryptocurrency gifts to universities have continued to grow since Blockchain.com founder Nicholas Cary made a donation of 14.5 bitcoin to the University of Puget Sound, his alma mater, in 2014. In 2018, the developers of the cryptocurrency EOS donated $3m worth of the coin to Virginia Tech, to aid in blockchain teaching and research.
Ripple co-founder Larsen and his wife Lyna Lam went even further in 2019. They donated $25m in XRD, Ripple's native token, to San Francisco State University. Also in 2019, Nikolai Mushegian donated $4.2m in Maker (MKR) tokens to Carnegie Mellon University. Vitalik Buterin, perhaps the most significant figure in decentralized finance and the co-founder of the Ethereum blockchain, gave away $9.4m in cryptocurrency donations in November 2022. The money, donated to the University of Maryland, will help to fund research in public health.
Not every donation to colleges and universities come with a name tag. Some donors choose to remain unidentified. For example, in 2021 the Wharton School of the University of Pennsylvania received an anonymous donation in bitcoin worth $5m.
Cryptocurrency opens up an additional avenue for universities to receive gifts. It also makes it easy for donors to donate their digital assets without having to first convert it to digital cash. Plus, reticent members of the public can easily and directly support their favorite educational institutions while maintaining their privacy. Hence, some schools have published instructions on their websites for those who wish to donate with digital tokens.
Non-fungible tokens, or NFTs, are a class of blockchain tokens that stand for real-world artifacts. They are unique identifiers that cannot be replicated, divided or copied. Universities are leveraging this newfangled phenomenon to foster closer ties with alumni or generate funds for research.
The University of California, Berkeley created headlines in June 2022 when it auctioned an NFT for $50,000, with the proceeds going to immunology research. The NFT was inspired by the research of James Allison, a respected immunologist and winner of the 2018 Nobel Prize in physiology or medicine. The school continues to explore other avenues for NFTs.
Institutions that wish to leverage NFTs have no shortage of inspirations to use or history to mine. In August 2022, the University of Miami minted an NFT of the school's football team's 1989 championship win for $10,000. The school has a website where it lists NFTs commemorating the institution's various sporting successes.
Some universities have gone the extra mile to make NFTs more attractive by doing a tie-in with real-world perks like VIP seating at events. Others like Harvard University made it a badge of academic accomplishment. The school announced in May 2022 that each graduate of Harvard College will get a commemorative NFT. Duke University, meanwhile, offers NFT certificates to students who complete a blockchain technology course.
The blockchain revolution is alive and well despite the recent downturn and universities are taking advantage wherever they can. In accepting tuition and donations and making creative use of non-fungible tokens, universities are showing the rest of the world the real-world possibilities of crypto adoption.
Kyrrex is thrilled to announce that Martin Di Nenno and Franco Stupaczuk will join the Kyrrex team as our sponsored tennis duo for 2023!
Not only are they exceptional athletes, but their history of playing together in junior tournaments as youngsters is a testament to their strong bond and determination. Stupaczuk and Di Nenno were a doubles team as juniors and in their teens. And now they are back as a pair to challenge Alejandro Galan and Juan Lebron for the title of the world's best pair.
As a global fintech brand, Kyrrex is dedicated to building a strong, engaged community of true tennis fans.
We Kyrrex team are proud to have our company logo on the t-shirts of ambassadors Martin Di Nenno and Franco Stupaczuk at world and regional tournaments, reaffirming our commitment to spreading our brand across the globe. We are also excited to announce some upcoming collaborative events, giveaways, and activities that we will be hosting with our community.
Be sure to follow our news, social networks, and blog to stay up to date on all the exciting events and opportunities we have in store!
Not even the current gloom in the cryptocurrency industry can dampen popular appetite for investments. Hope lives forever, as they say, and after the winter comes the summer. Many people are already buying up their favorite crypto at the current low prices in anticipation of a forthcoming boom.
Before you join the throng and throw in your hard-earned money, you should ask yourself a few questions. Nobody knows for sure when the bulls will come roaring back so it's best to be thoughtful and analytical about what crypto you invest in and how you do so.
Recall that in 2020 and for much of 2021, prices of popular cryptocurrencies soared beyond even the most optimistic forecasts. Thousands of early investors became millionaires as Bitcoin increased 800% to an all-time high of $68,000 in November 2021. Popular altcoins like Ether (ETH), PolkaDot (DOT) and BNB followed suit and everyone was loving it.
If you've paid attention in the crypto space then you should be familiar with what followed next. A cascade of calamities gradually eroded market prospects and investors' confidence. Major events like the global economic downturn and the war in Ukraine led investors to pull out from more volatile investments.
That wasn't all. The crypto world was rocked by several high-profile scandals. Two of them—the collapse of the Terra (LUNA) network, and demise of cryptocurrency exchange FTX—have cost investors billions in losses.
However, it is not all doom and gloom. Industry veterans have noted that things like this have happened before. And each time, the crypto industry bounced back and grew even more. Now, all eyes are on 2023 for a strong rebound.
Many analysts and big investors have marked 2023 as the year to test the crypto waters again. You should ask yourself these questions before you join them.
Thousands of investors put all their money in Terra and Celsius before the former crashed and the latter declared bankruptcy. Thousands more have their life savings trapped in FTX.
Bad idea, Amigos.
Before you jump into crypto, be sure that you won't be financially crippled if things go south. Investment brokers advise to have an emergency fund which is separate from your investment portfolio. In other words, keep enough money in a savings or fixed deposit account first before you make a major investment move.
The world of investing is unpredictable; crypto even more so. Prices can fluctuate up or down against your expectations. A rainy day fund will cushion you against unexpected losses and real-life changes as well.
Imagine having to sell your crypto at 70% loss because you urgently need money. This will rob you of the benefits of the anticipated recovery. If you have emergency funds, you can use those in the meantime instead of selling your assets or taking a loan.
The answer to this question will largely determine your approach towards dramatic dips and Black Swan events. If you're in crypto for quick profits, you will be more inclined to cash in at the first large green candle. In the same vein, you will be more likely to cut your losses at the first sign of trouble. This approach can work with newer altcoins which often enjoy a honeymoon period.
A more long-term perspective will insulate you from making emotional judgements based on momentary market changes. If you believe in crypto and the potentials of blockchain technology, you can handpick individual projects that you believe will perform well in the coming years.
Alternatively, you can stick with the major players like BTC and ETH because of their staying power and room for future growth. Either way, you should conduct in-depth research before you buy your preferred coins and be comfortable with their future yield potential.
There is no doubt that the rise of cryptocurrencies has opened a new investment avenue but it is also fraught with danger. Unlike stocks and treasury bonds, crypto is a relatively unregulated market with lots of bad actors, poorly-managed exchanges, and greater risk of failure.
For this reason, experts recommend making your crypto investments a reasonable part of a diversified portfolio. Rather than going all in, make crypto, at most, 10% of your overall investments. Put the rest of the money in stocks, bonds, real estate, gold, and other less volatile commodities. This way,a prolonged bear market won't make a big dent in your finances.
"Don't put all your eggs in one basket," comes to mind here. Plus, fortune doesn't always favor the brave, no matter what Matt Damon tells you.
A large segment of crypto investors hold coins because of reasons that have little to do with prudent investing. Many invest due to peer pressure, because others are doing the same thing. When Bitcoin and the larger industry went bananas in early 2021, plenty of people bought crypto because of FOMO—fear of missing out. They wanted in on the riches without any idea what they're actually doing. And while some of them got what they wished for, others ended up with bags of devalued crypto as smart investors sold their holdings.
To counter panic selling or buying, you need to have a plan and stick to it. Be clear about your aims in crypto and disciplined when carrying out your plan. Don't let momentary fluctuations sway you from the beaten track. How much are you investing, which coins will you put the money in, and when will you sell off your holdings?
Setting short, medium and long-term investment targets is also crucial. You can plan ahead to sell or buy a certain amount of a coin when it reaches a specific price point. With concrete plans like this, you will make better decisions.
Crypto is like the wild west. The potential rewards are great, but so are the risks. You shouldn't go into any venture without being fully informed about what you stand to gain—or lose. Keep it in mind that, in crypto, you can lose everything.
Whether to buy crypto in 2023 or not should depend a lot on your risk tolerance level. If a 5% drop will set your heartbeat racing, you might be better off investing in less volatile instruments.
There are ways to guard against losses. For example, you can use a regulated crypto exchange with a legal license instead of storing your coins on a shady platform. Studying projects before you invest in them will also help you spot and avoid potential rugs.
After recent setbacks, crypto faces an uncertain future but there are signs that a recovery isn't far off. Governments across the world are now paying more attention and making moves to plug regulatory gaps. This should make the sector more safe for investors who operate on cryptocurrency exchanges.
If you're expecting quick returns, crypto might not be for you right now. Experts project a slow recovery after the bleak 2022 so a 2021-style run is probably out of the question.
Even so, with some savvy research and quick planning, you can spot coins with the potential to yield big gains when the bulls return.
You have probably heard the news by now. The FTX exchange, once the darling of professional crypto traders, has fallen.
It's what everyone talks about these days—on crypto twitter, blockchain blogs, in the New York Times, and even on Capitol Hill in the United States.
And while the community digests the sober reality and what it means for the industry at large, a lot of individuals who saved their money on the platform are left licking their wounds.
How can the industry prevent a situation like FTX's crash from happening again? That's the 8 billion-dollar question. While regulators and industry players figure this out, mere investors are wondering how to protect themselves against possible platform failure.
If FTX's fall from grace has made one thing clear, it is that no platform is too big to fail. Things happen fast in the world of crypto and investors who haven't taken protective measures can lose all their money.
But how can investors protect themselves in this volatile and largely unregulated market? Here are three avenues to consider.
An exchange feels like a natural place to leave the crypto you buy. You can easily access, transfer, sell or use it for a variety of ways depending on the platform. For active traders especially, storing crypto on an exchange often feels like a no-brainer.
The problem with this is that the keys to exchange-stored crypto are kept by the exchange rather than the individual investors. You are using a wallet provided by the exchange and don't have access to the private keys. You are trusting the platform to keep your funds safe and secure just like you would a traditional bank to safeguard your deposit.
This type of wallet is a custodial wallet. The platform is the custodian who controls wallet access and they can withdraw that service at any time. You're just trusting that they won't. As the example of FTX has shown, this isn't always a wise choice. If a platform runs into liquidity issues, gets hacked or becomes suspicious about your activity, it can freeze your account.
The obvious counter to this is to store your funds in a wallet you control. You can move your crypto to an exchange for trading purposes and transfer it out to a non custodial wallet when you're done. You control the private keys to this type of wallet. Only you have access to the crypto in it and your funds cannot be seized by regulators or frozen by an exchange.
Using a non custodial wallet is the best protection you can have against platform failure. You can use either a cold wallet, which stores your crypto offline, or a hot wallet, which requires Internet access. The cold wallet is more secure but the hot wallet is easier and faster to operate.
That said, exchange wallets have some operational advantages over non custodial wallets. Here are some drawbacks of self-controlled wallets:
Exchange wallets are mostly plug-and-play while non custodial wallets require a setup process.
Non custodial wallets are harder to operate and require some technical knowledge.
The private keys to a crypto wallet can't be recovered once lost. But for an exchange wallet, you can simply contact customer support if you lose your account password.
Self-Custodial wallets are less suitable for active trading.
Old and new investors must consider whether the advantages of exchange wallets are bigger than the potential risks. Following the recent spate of crashes and collapses, trust in crypto custodians is at an all-time low. Not every crypto exchange will be truthful about what they're doing with customer funds. Fortunately, investors have the option to embrace decentralized wallets and skip exchanges altogether.
Most investors that lost money to the FTX collapse cannot substantiate their claims in court. So if the company decides not to compensate them, there's little they can do. This is because they kept no records of their activity on the platform.
A crypto platform that files for bankruptcy is unlikely to share your records with you just because you asked politely. Take matters in your own hand and keep a detailed, regularly-updated record of every substantial transaction you do on an exchange. Most platforms let you download a yearly, monthly, weekly or daily activity report.
Doing this has two benefits for the investor. If you live in a jurisdiction that taxes crypto transactions, you'll be able to make an accurate tax filing, if your crypto platform doesn't handle it. Secondly, should the platform go under, the records will serve as evidence of your holdings if there's a chance of getting some of your money back.
Weeks after the FTX scandal, a picture of mismanagement, recklessness and internal system failure is beginning to emerge. By all accounts, FTX founder, Sam Bankman-Fried, is a very charismatic fellow. But leadership nous, not charisma, was what FTX needed, and it had none of it.
Most major crypto platforms are helmed by people like Bankman-Fried with lots of charisma. As a result, investors tend to trust them and their platforms with their money. Also, because of the opaque ways most crypto exchanges operate, internal dodgy dealings usually go unreported to the public.
This does not mean all crypto exchanges cannot be trusted. It does mean that investors should carry out serious due diligence when deciding which platform to trade or save on. Here are some tips to help with making a balanced decision:
Some platforms save the dollar value of customer deposits in FDIC-insured bank accounts, thus protecting the insured funds against unforeseen losses.
The fallout from FTX's demise has led some cryptocurrency exchanges to release audited proofs of reserves. Others who haven't done so yet have promised to publicly release theirs in the near future. These documents help to assure investors of the platform's solvency and compliance with good business practices. Investors can also use the new reserve tracker tool from CoinMarketCap to get useful insights on platform reserves.
Some cryptocurrency platforms have also taken the initiative to secure licenses from the official financial regulators in their jurisdictions. This brings them in line with standard financial services companies in terms of operational and security compliance.
Until the regulators rein in the crypto industry, the task of protecting your crypto asset squarely lies with you. Make sure to diligently follow the tips in this article so as not to be caught unprepared.
On February 6th, 2023, Turkiye and Syria were struck by a series of powerful earthquakes, leaving widespread devastation in their wake.
Kyrrex team extends its sincerest condolences to all the victims of this tragedy. Our thoughts and condolences go out to those who have lost their loved ones, to the injured, the homeless and the governments of the two grieving countries.
The world stands united in the face of this tragedy, and Kyrrex remains hopeful that, through the tireless efforts of rescuers and aid workers, the affected communities will soon begin their journey to recovery.
In times like these, it's important to come together as a community and support one another. Join in supporting the victims of this earthquake, and encourage everyone to stay informed and engaged as the situation develops.
We are thrilled to announce that Kyrrex is furthering its partnership with Pramac Racing into 2023 and beyond! As our users know, the Kyrrex & Pramac combo has been very successful, helping to provide visibility for our suite of Kyrrex products.
Several Pramac racers already attained a podium finish while proudly sporting the Kyrrex logo on their uniforms. We hope to continue this trend and achieve even more Pramac wins, and Kyrrex is committed to helping make that happen.
This year, we have planned even more exciting collaborations as we continue pushing the boundaries of innovation and striving for industry leadership.
In addition to our main partnership with Pramac Racing, we are thrilled to announce that Jorge Martin, Pedro Acosta, and Aleix Espargaró will continue serving as Kyrrex ambassadors in 2023. These talented riders embody Kyrrex's spirit of innovation and excellence, and we are honored to have them represent our brand.
We are very excited about the future of Kyrrex and Pramac Racing. Together, we will continue to push limits and achieve great things.
Thanks to all our users for your support and we look forward to sharing more exciting updates with you in the near future!
Your Kyrrex 💚