AltTokens

Category: Education

Buy cryptocurrency for the long term

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Without unnecessary introductions, let’s go straight to the question can I get a loan for bitcoin? Let’s start by looking at the first way of making money from cryptocurrency. The fact is that top coins are steadily rising in value. Yes, sometimes there are drawdowns, but in general, if you predict the trend, you can significantly increase your capital with promising investments.

The best example is Bitcoin. In 2009, 1,000 BTC was worth 0.003 USD. Those are ridiculous figures. Except in November 2021, the price of 1 BTC rose to a peak of 68,000 USD. Moreover, in the middle of 2020, for one coin on the exchange, they gave 12 thousand USD. Altogether, it was possible to earn in a year a little bit of 56 thousand USD of profit on one Bitcoin.

There are other examples. Say, 1 ETH in 2019 could be bought at times for 100 USD. And at the end of 2021, it was already trading at more than 4,500 USD per 1 ETH. At the moment (July 2022), the Ether has strongly depreciated, it is trading at around 1,600 USD per ETH. But at the same time, the asset has already gained more than 600 USD since June, and the trend is upward. There are many such examples. They all clearly show that cryptocurrencies are growing in value.

Long-term earnings on cryptocurrency include investments lasting more than 1 month. That is, having bought Ether in June, you could now earn 600 USD per coin.

  • Advantages: potentially high profits, it is possible to reduce the risk by investing in a portfolio of cryptocurrencies, no deep knowledge of technical analysis is needed.
  • Disadvantages: with strong quotes drawdown, there is a risk of losing a lot of money, and knowledge of fundamental analysis is required.

Binance Loans

Cryptocurrency exchange Binance once again expanded its functionality – launched the service Binance Loans, which, of course, is relevant on the wave of the growing popularity of loans secured by cryptocurrency.

Features of the site:

  • The loan is issued in stablecoins USDT and BUSD.
  • The daily interest rate is 0.0305% to 0.031% for USDT and 0.028% to 0.0285% for BUSD. Also, all users receive a 20% discount from March 31 to April 14, 2020.
  • BTC or ETH can be deposited as a deposit.
  • Minimum pledge amount is 100 USDT, maximum 10 million USDT.
  • Loan term is user selectable from 7 to 90 days. The 90-day loan has an interest rate slightly higher than the others. If you repay the loan earlier, the interest will be calculated based on the actual duration of the loan.
  • At any time, you can add or remove some collateral, adjusting the LTV.
  • Any registered user can take a loan.
  • The borrowed funds are allowed to be used for trading on Binance.

If payment is overdue, then three additional days are given, during which an additional interest is charged (three times the normal rate). If, even after three days, the payment is not repaid, the exchange takes away the remaining deposit at that time.

The problems of the crypto market

The company has been using business-grade hardware for the past four years. It can support more than 8,000 nodes for 70+ blockchain networks, including Solana, Cosmos, Tezos, Polygon, and Cardano.

Everstake employs more than 125 experts from around the world and has participated in the development of complex blockchain products such as Metaplex. The development team has created a potentially multi-billion dollar project for the global decentralized financial market.

The idea is simple: give users of the cryptocurrency industry the ability to make deposits from any token. For the first time, cryptophones will be able to reuse tokens that are already in their wallets.

Crypto participants are well aware of this problem. Its essence is as follows:

  • many tokens people have bought in the hope that they will go up in value;
  • most of those tokens have fallen in price for a variety of reasons;
  • millions of crypto fans are waiting for the price of their assets to return to pre-crisis values.

As a result, billions of tokens are sitting in their wallets for no good reason. Rewater can solve this problem.

Crypto platform: Coinloan

CoinLoan is a fully automated platform and one of the most technically advanced in the cryptocurrency market. With a wide range of digital assets, CoinLoan customers have maximum flexibility in choosing the currency that best suits their needs.

CoinLoan benefits:

  • Improved overall application performance through software upgrades.
  • Improved security by upgrading component versions.

CoinLoan has implemented a cryptocurrency storage strategy, creating a wallet that meets their business needs for security and reliability, as well as the flexibility to move digital assets.

Crypto platform: Nebeus

Nebeu is a platform that combines cryptocurrency and banking capabilities. It allows you to work with cryptocurrency funds – buy, sell, store, borrow bitcoin or lend. Operates since 2014, providing convenient customer-oriented service and following the trends of the developing crypto market.

Site Features:

  • Interest rate of 6.12% or 16.25% per annum, depending on the selected loan program.
  • Bitcoin, ether, or Nebeus tokens are used as collateral.
  • Minimum pledge is 0.006 BTC, 0.3 ETH.
  • Maximum deposit 30 BT, 1500 ETH.
  • Funds are credited to the account in EUR within 30 seconds. If the money is not received within a day due to the fault of Nebeus or the payment system, the period of credit will be extended for that time.
  • User deposits are stored in cold wallets.
  • No proof of identity is required, and it doesn’t matter what country you are from or what your credit history is.
  • Available credit is 72% of collateral at an interest rate of 6.12%, and 85% at an interest rate of 16.25%.

Nebeus’ terms are considered one of the most comfortable in the industry and give you a lot of control over your cryptocurrency assets. One of the main advantages is the instant delivery of euros to your account.

What is Rewater

It allows you to reuse your assets and be rewarded for doing so. Thus, during a long crypto winter, Rewater gives a boost to the entire crypto industry.

The financial component is not the only one in the project. Another important aspect of Re:water is gamification and social mechanics. We are talking about competition for revenues, conflicts, groupings, and alliances. All of the aforementioned allows us to say that the first social network for finance has already been created… You can read more about the mechanics and reuse your crypto-assets on the website.

Conclusion

CoinLoan is an international fintech project. The project team has been working remotely since day one and is spread across different countries. Despite this, they managed to develop the industry of loans secured by digital assets.

Decentralized Market

Posted on by altokens

A decentralized market is one in which technology allows investors to connect with each other directly, without going through a centralized exchange. Cryptocurrency markets are examples of decentralized markets.

Decentralized markets use digital devices to communicate and instantly show bid/ask prices. With this method, buyers, sellers, and dealers don’t need to be in the same spot to trade securities.

 Examples of Decentralized Markets

Forex Market

Unlike stocks and bonds, which have one central location ( Wall Street in the U.S.), forex currencies are traded all over the world on many different exchanges. Because of this, there is no one physical place where you can buy or sell them. Instead, traders use the internet to check currency quotes from around the globe.

Real Estate

Most real estate is sold in a decentralized market, where buyers and sellers connect with each other directly to make deals, without going through an intermediary.

Types of Securities

Some bonds and securitized products can also be bought through decentralized markets.

 

Blockchain technology and cryptocurrency have given rise to decentralized markets, which are not subject to government regulation. Some people believe this is a good thing because it makes transactions more secure and trustworthy.

Some people in positions of power have discussed ways to potentially regulate the use of decentralized currencies, which has caused alarm among fans of virtual markets. The reason for this consternation is that such regulation would likely result in a loss of anonymity and direct control over transactions–two features that are currently seen as advantages.

Decentralized currency refers to bank-free methods of transferring wealth or ownership without needing a third party, most often used in virtual markets. An example of decentralized currency is bitcoin–the “coinage” used on the Bitcoin platform.

DeFi products need cutting edge technologies to provide a safe and secure investment experience.

Posted on by altokens

The expansion in the industry is mostly thanks to a few profitable high-interest opportunities on various DeFi platforms.

DeFi is a rapidly growing sector in the crypto industry, with over $50 billion worth of assets locked in various DeFi protocols. The growth of this sector can largely be attributed to several lucrative opportunities for high interest earnings across DeFi platforms. DeFi is an emerging financial landscape that uses blockchain technology to offer innovative financial services such as staking, yield farming, lending and borrowing.

DeFi is growing so rapidly because these platforms use smart contracts to run automatically, without intermediaries like banks or insurance brokers. In an ideal scenario, these smart contracts would power valuable services like lending protocols and decentralised exchanges (DEXs).

Although blockchain technology is newer, there have been more occurrences of people finding ways to exploit bugs or security vulnerabilities. As the innovation and development of this technology grows, so do the risks. There are now more opportunities for scammers to find novice users and platforms to attack in order to empty crypto wallets.

Decentralisation is at the core of DeFi, where users connect with the protocol directly to conduct financial transactions using cutting-edge services for higher returns than traditional finance. However, without an intermediary, there could be a lack of accountability where it may be tough to set up investors’ rights and safeguard their funds as in the more established financial world.

Some common goals for financial regulation are to protect investors and other people who could be affected, make sure the market is functioning properly, help people get access to financial services, enable businesses to raise money, stop criminal activity and ensure the overall stability of the system.

To maintain the growth of DeFi, we need certain security improvements and supporting infrastructure. By establishing standards that identify common dangers in DeFi, we can provide protection to investors without sacrificing the decentralization that is so key to this sector.

Some common ways that crypto wallets can be hacked or emptied are through rug pulls, honeypots, phishing attacks, fake google ads, and scam airdrops. There are also several ways to identify such scams; for example, it’s very suspicious when most of the circulating supply of a token is controlled by just a few wallets. You can check the token distribution on blockchain explorers like Etherscan for Ethereum tokens by clicking on the “Holders” tab of the smart contract.

There are free, automated tools available that can audit token contracts and check for malicious code. These tools cannot be relied on completely, but they provide a good starting point to conduct due diligence on DeFi protocols.

The AI cloud could support the infrastructure by replacing off-chain third-party providers with AI inference directly on-chain for information exchange. Self-learned AI-based smart contracts could be used for building fully autonomous chains.

Unfortunately, flash loan vulnerabilities are all too common among criminals who exploit signature verification or manipulate trading pairs. Before using any platform, it’s essential that investors do their due diligence by researching which platforms have conducted regular audit checks. These audits should be accessible to the public on the company website so that anyone considering investing can make an informed decision.

As it stands, the DeFi industry is being hindered by a lack of standardization. Multiple protocols and networks exist but none are universally compatible, making even basic functions complicated. Further development is made difficult as any upgrades or implementations risk breaking other parts of the system. To resolve this issue, blockchain companies should collaborate with standard-setting bodies such as ISO and UN/CEFACT to establish some standards that can be used across the board. This would provide a solid foundation for future development in the industry.

The issue of a lackadaisical approach to Cross-Jurisdictional disputes, KYC compliances, digital identity checks among others are currently the primary issues/hurdles preventingthe DeFi industry from achieving its full potential. Policymakers should handles these compliance issues with discretion and care in order to protect users as well as maintain harmony within the ecosystem at large.

Platforms can use static analysis tools to help them find bugs earlier. These tools are designed to automatically run through contracts for finding potential vulnerabilities. The platforms should also have a bailout plan for their investors in case of a hack, such as getting insurance, installing an emergency pause feature, or having an upgrade plan. Insurance protocols have become a popular way to recover from a disaster because they could add a level of financial security without compromising decentralization

To ensure the safety of your investment, it is always a smart idea to check out the team running the project. If they are public, that’s even better, as you can do your own research on them. However, if they keep their identity anonymous but have good reputations with past projects They’ve launched successfully, that’s also a reliable indication.

In other words, DeFi platform creators need to take many steps to protect investors from attack. This includes real-time traffic analysis and proactive responses to potential exploits, plus security measures like investor education and protocols for handling hacks.

What Is Wrapped Bitcoin?

Posted on by altokens

The concept of Wrapped Bitcoin is new but could be pivotal in terms of DeFi liquidity.

WBTC or Wrapped Bitcoin is a new technology that allows BTC to be used on the Ethereum blockchain. WBTC has many uses, but one of the main ones lies in decentralized finance.

Now picture you’re already knowledgeable about Bitcoin and very interested in utilizing DeFi applications. The only issue is that there’s not a dependable cryptocurrency bridge connecting Bitcoin and Ethereum!

Wrapped BTC provides the DeFi industry with much-needed liquidity to various protocols.

WBTC is an ERC-20 token that has a 1:1 value with Bitcoin. Even though Bitcoin’s value doesn’t always stay the same,WBTC tries to copy its stability .

To ensure the cryptocurrency is fully protected, Bitcoin is wrapped and held in a reserve by the BitGo Trust. In an effort to maintain transparency ( something other coins have struggled with,) the WBTC team has made public both how much of the coin is circulating as well as provided physical proof that the Bitcoin ,the underlying asset,is securely being kept in their custody.

WBTC can be wrapped or unwrapped in wallets from providers such as CoinList.

In other words, they allow the owners of digital assets to move their assets to different blockchains.

A majority of the DeFi ecosystem and DApps rely on the Ethereum network instead of the Bitcoin blockchain, which can be very irritating for BTC owners because it makes participating nearly impossible without selling their cryptocurrency or purchasing others.

The WBTC.network launched in January 2019, and since then, many DeFi protocols have begun to allow borrowers to use WBTC as collateral. This can be locked into a smart contract using the DAI stablecoin on Ethereum, with crypto loans being paid out using this method.

The Wrapped Bitcoin project is managed by the WBTC DAO, which stands for Decentralized Autonomous Organization.

ETH can certainly be used as collateral on DeFi platforms, but it’s worth noting that Bitcoin’s market cap is far greater when measured in USD. This makes BTC a more popular choice among investors. However, expanding the range of acceptable collateral types is crucial for DeFi applications—especially as they reach new all-time highs in terms of value locked. With trading volumes increasing, liquidity becomes an increasingly important concern to avoid significant price fluctuations during transactions.

The number of BTC being converted into wrapped tokens is on the rise as well. According to DeFi Pulse, the total value locked in WBTC surged by 943% from mid-May to mid-August 2020.

There are a number ofofficial merchants who support Wrapped Bitcoin, including CoinList. In some cases, you may need to go through KYC checks in order to verify your identity. Alternatively, you could use a DEX (decentralized exchange).

The process of minting WBTC is not complicated.

WBTC tokens are one solution to the long-standing problem in the cryptocurrency world of how to better connect major blockchains such as Bitcoin and Ethereum.