Introduction:

Decentralized Finance (DeFi) has emerged as one of the most exciting and transformative sectors within the cryptocurrency industry. With its promise to recreate traditional financial systems in a decentralized manner, DeFi has garnered significant attention and investment. In this article, we will explore the key concepts, benefits, challenges, and future prospects of DeFi.

Understanding DeFi:

DeFi refers to the use of blockchain technology and cryptocurrencies to recreate various financial services traditionally provided by intermediaries such as banks, insurance companies, and lending institutions. DeFi applications are built on decentralized networks, predominantly on the Ethereum blockchain, and enable users to engage in financial activities without the need for intermediaries.

Key Features and Benefits:

Open and Permissionless: DeFi platforms are open to anyone with an internet connection, enabling financial inclusion on a global scale. Users have full control over their funds, eliminating the need to rely on traditional intermediaries.

Smart Contracts: DeFi relies on smart contracts, self-executing agreements with the terms of the agreement directly written into code. Smart contracts automate processes, eliminate human error, and enable trustless interactions.

Programmability and Interoperability: DeFi platforms allow developers to create complex financial applications by leveraging programmable smart contracts. This opens up a world of possibilities for creating innovative financial products and services.

Transparency and Auditability: The transparent nature of blockchain technology enables users to verify transactions and the overall financial health of DeFi protocols. This transparency increases trust and reduces the risk of fraud.

Access to Global Liquidity: DeFi protocols facilitate the seamless transfer of assets, enabling users to access global liquidity pools for borrowing, lending, and trading purposes.

Popular DeFi Use Cases:

Decentralized Exchanges (DEXs): DEXs allow users to trade cryptocurrencies directly from their wallets, without the need for an intermediary. They provide enhanced privacy, security, and liquidity.

Lending and Borrowing: DeFi lending protocols enable individuals to lend their crypto assets and earn interest, while borrowers can access loans without going through traditional credit checks.

Stablecoins: Stablecoins are pegged to stable assets like fiat currencies and offer stability in an otherwise volatile cryptocurrency market. They enable users to store value and transact with a stable asset within the DeFi ecosystem.

Automated Market Making (AMM): AMMs use algorithms to provide liquidity for trading pairs, allowing users to trade assets instantly without relying on order books.

Challenges and Risks:

Security: While DeFi protocols offer enhanced security through blockchain technology, vulnerabilities in smart contracts and potential exploits can still exist. Thorough auditing, code reviews, and security measures are essential.

Scalability: As the popularity of DeFi grows, scalability becomes a crucial challenge. The Ethereum network, for example, has faced congestion and high transaction fees during periods of peak demand.

Regulatory Uncertainty: DeFi operates in a rapidly evolving regulatory landscape. The lack of clear regulations introduces uncertainty and can potentially limit the growth of the sector.

The Future of DeFi:

The potential of DeFi to disrupt traditional financial systems is immense. As scalability solutions are implemented and user-friendly interfaces are developed, DeFi has the potential to reach mainstream adoption. Additionally, the integration of DeFi with real-world assets, cross-chain interoperability, and the emergence of regulatory frameworks can further drive its growth.

Conclusion:

Decentralized Finance (DeFi) is revolutionizing the financial landscape, empowering individuals with more control over their finances and creating innovative financial products and services. While challenges and risks exist, the promise of increased financial inclusivity, transparency, and efficiency make DeFi an exciting frontier in the cryptocurrency industry. As the ecosystem evolves, it is important for users, developers, and regulators to work together to harness the full potential of DeFi while addressing its challenges responsibly.

#universalcryptoworld #crypto2023 #trading #BinanceTournament #pepe

Binance CEO Changpeng Zhao delivered his forecast for the next Bitcoin bull run during a Twitter Space on July 5.

Binance CEO Changpeng “CZ” Zhao has delivered his prediction for the next Bitcoin BTC bull market.

In a July 5 “ask me anything” session on Twitter, CZ covered BlackRock's intention to enter the crypto market, updated listeners about ongoing regulatory action against the exchange, and gave his thoughts on the next bull run.

CZ explained that the price of Bitcoin has historically moved in four-year bull cycles and his best bet was that this would continue to occur. 

While he admitted that he couldn’t see the future, Zhao emphasized the upcoming Bitcoin halving event in 2024 and declared 2025 to be the most likely year for the next bull market, stating:

“The year after Bitcoin halving is usually the bull year.“

Asked whether he was concerned about BlackRock’s recent entry into the spot Bitcoin exchange-traded fund arena, CZ welcomed it, saying it is “hugely beneficial” for the crypto industry.

Since the firm’s June 15 filing, many have raised concerns that the intention of major TradFi firms stands in direct contrast to the ethos of Bitcoin as a decentralized monetary network.

Zhao also brushed off concerns that BlackRock could eat up Binance’s market share in the future, describing the overlap between their respective customer bases as “minimal.”

“Anyone who’s coming into crypto that’s not in crypto today will bring additional people into crypto. Will they compete for any of the existing users with us? Yes, probably a little bit. But to be honest, look at our user base. The overlap is minimal.”

Zhao explained that increased institutional interest and Bitcoin’s upcoming halving are the two primary reasons why Binance wants to be “prepared for higher [trading] volumes” over the next eighteen months.

Related: Bitcoin ETFs: Even worse for crypto than central exchanges

Zhao’s comments come just hours after BlackRock CEO Larry Fink praised Bitcoin as an “international asset,” saying that it could be used to hedge against inflation and the devaluation of certain fiat currencies.

During the Twitter Space, Zhao was also questioned about the status of regulatory action against his exchange. While he acknowledged that he couldn’t talk specifics, Zhao said that he and Binance are looking for “the most expedient, reasonable and mutually agreeable solution possible.”

#BTC #universalcryptoworld

In recent times, crypto scams have become alarmingly prevalent, exploiting the growing interest and investment in cryptocurrencies.

From Ponzi schemes to fake initial coin offerings (ICOs) and phishing attacks, crypto scams encompass a wide range of deceptive practices designed to trick individuals out of their digital assets.

What Are Crypto Scams?

Crypto scams are like any other financial scam, except the scammers are after your crypto assets rather than your cash.

Crypto scammers use many of the same tactics employed in other financial crimes, such as pump-and-dump scams that lure investors to purchase an asset with fake claims about its value or outright attempts to steal digital assets.

This latter type of scam could involve breaking into a person’s crypto wallet or getting an investor to send a digital asset as a form of payment for a fraudulent transaction, says Shane Cummings, wealth advisor and director of technology and cybersecurity for Halbert Hargrove.

The goal is always to manipulate victims into divulging personal data or transferring valuable digital assets like non-fungible tokens (NFTs) to the perpetrator’s account.

“As an instrument, crypto scams are particularly appealing to nefarious agents who enjoy cryptocurrency’s swift conversion to fiat money, ready-to-use third-party transaction applications and rich obfuscation techniques,” says Chengqi “John” Guo, professor of computing information systems and business analytics at James Madison University.

Types of Crypto Scams

Crypto scams can take many forms. Here are a few of the most common examples.

Investment Scams

Investment scams involve a bad actor enticing people to send their cryptocurrency to the fraudster with promises of “huge gains.”

Scammers can play many parts, such as an “investment manager,” a celebrity or even a love interest on an online dating site. Whatever role is assumed, they promise to grow your investment if you transfer your cryptocurrency to them.

If you follow through with their request, kiss goodbye to your crypto.

Investment scams include pump-and-dump schemes. A fraudster entices you to buy an obscure crypto at a “low price,” with promises that the asset’s value will soon go through the roof.

When you buy, the price rises, at which point the scammer dumps their holdings at the new higher valuation, which causes the price to collapse, leaving you and any other victims underwater.

“Typically, the new token is worth a few cents, or even fractions of a cent. But a little bit of momentum can drive it up the charts on sites like CoinMarketCap.com to make it look like the sky’s the limit on price appreciation,” Cummings says.

“Given the speed at which new coins are created and marketed to investors on the internet without regulation, some investors looking to earn a quick profit are drawn in by reports of triple-digit percentage gains in a digital asset over a short period of time and want to jump on the bandwagon,” he says.

To spot an investment scheme, look for promises of excessive profits or zero risks.

These schemes often begin on social media or online dating sites, so be wary of anyone contacting you out of the blue about your crypto assets. Watch out for anyone talking up a particular crypto asset on Reddit or other social media platforms, too. These are known as socially-engineered scams.

Phishing Scam

Phishing scams are an old favorite among scammers. Fraudsters are aiming to access your account details, including your crypto keys. As any crypto user knows, he who holds the key holds all the crypto.

Phishing scammers often lure you into clicking on a link to a fake website, where they can then steal your account details. They can impersonate well-known companies, like Amazon or your bank, utility companies, or even government agencies, and may post links on social media or contact you directly.

For example, they might send you an email or text saying a withdrawal was initiated and give you a link to cancel the transaction.

“The link directs to a fraudulent website and harvests the investor’s account credentials, allowing thieves to login and withdraw assets,” Cummings says.

Anyone can fall prey to a phishing scam and any digital asset can be the target of such a scam, as actor and film producer Seth Green realized earlier this year when four of his Bored Ape NFTs were stolen.

Upgrade Scams

Software is constantly being updated, and cryptocurrency platforms are just a form of software. Since many have become accustomed to upgrades in the digital age, scammers can easily trick crypto holders into giving up their private keys as part of an “upgrade.”

Upgrade scammers can piggyback on legitimate migrations, such as the recent Ethereum merge, which had both the Ethereum Foundation and Robinhood concerned enough to issue a warning that users be on “high alert” for upgrade scams.

SIM-Swap Scams

SIM-swap scams are among the newer crypto scams taking place today. They occur when a scammer gets access to a copy of your SIM card and can access all of your phone’s data.

“That information can be used to receive and use the two-step authentication codes required to gain access to crypto wallets and other accounts without the victim knowing,” Cohn says. “When this happens, the victim’s crypto accounts can be hacked and wiped out without the victim even being contacted.”

Fake Crypto Exchanges and Crypto Wallets

“If you browse your social media handles, you will come across sites that advertise cheap Bitcoin (BTC),” says Martin Leinweber, digital asset product strategist at MarketVector Indexes. They may advertise cryptocurrencies at 5% below market value and promise huge savings when you buy through the site—but sometimes, these platforms are fake crypto products.

These fake crypto products often quote outrageous returns on investment, and users are typically required to pay a high initial fee and then frequently asked to invest more and more.

And when you try to withdraw your funds, you’ll likely find they’ve vanished.

“A fake crypto wallet is a malware scam,” Leinweber says. “Scammers use it to infect a computer and eventually steal the user’s private key or password.”

To avoid such scams, stick with reputable exchanges and wallets with long user history.

“If a wallet’s website tries to resemble a reputable brand, you should consider it a scam and move on,” Leinweber says.

How to Report Crypto Scams

“Since a lot of the perpetrators of crypto scams are outside of the U.S., our law enforcement institutions can only do so much,” Cummings says. But you should still report any crimes.

You can report crypto scams to the following places:

Federal Trade Commission

Securities and Exchange Commission (SEC)

Commodity Futures Trading Commission (CFTC)

Internet Crime Complaint Center (IC3)

You can also file a complaint to the crypto exchange you used to send the money.

“Usually, for a claim to be subject to proper investigation by your brokerage, a formal complaint is required,” Cohn says. “The investor needs to figure out whether that is required and how to do it, and quickly.”

You can also reach out to the media and invite them to cover the event, Guo says. “Doing so can raise the public’s awareness of the crime and assist in mitigating future criminal activities.”

Just be sure to share with the discretion of safeguarding your own privacy, he adds.

How to Avoid Crypto Scams

Given the heightened risks with digital assets, prudence is essential. To avoid crypto scams, follow these tips:

Don’t respond to unsolicited contact. “No matter who contacts you from your crypto brokerage—or any financial institution, for that matter— the best practice is not to respond,” Cohn says. “Look up the official number for the institution and initiate independent contact.”

Check before you click. Don’t open hyperlinks or attachments from unfamiliar senders.

Keep accounts separate. Don’t link crypto brokerage accounts and traditional bank accounts permanently.

Place a hold immediately. “If you receive notice of unusual activity on an account, do not wait to place a hold on any future transactions based on fraud,” Cohn says.

Use reputable companies. To ensure your information and crypto security, use a wallet from a reputable company,” Leinweber says. He points to Exodus and MetaMask as reputable hot wallets or Ledger, Trezor or Bitbox as reputable cold wallets.

Look for HTTPS. HTTPS—as opposed to just HTTP—in a crypto exchange or wallet URL indicates the site has secured and encrypted traffic, Leinweber says.

How to Get Money Back from Crypto Scams

Getting your money back from crypto scams is tricky. “As transactions on a blockchain are immutable, the likelihood of getting your coins back is pretty low,” Leinweber says.

That said, he still recommends reporting crimes to legal authorities. “When you report a scam, the government might track down the criminals and get your funds back for you,” he says.

Ultimately, the best recourse is to take extra precautions with future assets so that you don’t become a victim again.

THANKS FOR READING AND STAYING SAFE

KINDLY DO LIKE AND FOLLOW #universalcryptoworld

Kiarash Hossainpour, a YouTuber and investor, has become a case study in the dangers of getting rich quick with bitcoin

Kiarash Hossainpour found a shortcut to getting filthy rich. When he still couldn’t grow facial hair, he was online giving seminars on entrepreneurship. But last spring, his fortune vanished during the collapse in the price of cryptocurrencies. From one day to the next, he had lost everything.

However, even after this disaster, the 22-year-old German of Iranian origin is not giving up. After losing up to 90% of his digital investment portfolio, Hossainpour assured the German edition of Business Insider that he will continue to invest in bitcoins. A firm believer in the future of cryptocurrencies, he notes that “accumulating losses… is part of the game.” It builds character.

A crash course in crypto

Hossainpour says that the collapse in the value of his digital assets worries him only slightly, because he is not planning on selling them. He considers himself “a strategic investor” – someone who does not succumb to “sudden panic attacks.”

“I did not sell in moments of uncontrolled boom and I will not sell, of course, in full decline.”

Bitcoin is trading today at €22,542 per unit… far from the all-time high of €67,205 that it reached in November 2021. Still, it remains the most stable of all the cryptocurrencies in which Hossainpour invested. The true lethal bite to his finances has come from Luna, the cryptocurrency on which he was betting with messianic fervor just a few months ago on his YouTube channel. Last May, it lost 99% of its value.

What happened? Hossainpour blames the disaster on the “incompetence” of the team that launched the cryptocurrency. He acknowledges that he did not see it coming. The “sixth sense” that allowed him to accumulate hundreds of thousands of followers on his financial advice channels on social networks has wasted away. This has also impacted his net worth, because the young German is, in addition to being an investor, an “influencer.” Or, in the words of US stock market advisor and radio host Clark Howard, “an irresponsible man who [caused] thousands of unknowing people to go bankrupt.”

The making of a kamikaze entrepreneur

Kiarash Hossainpour was born in Berlin in 1999, into an Iranian family (he prefers to say “Persian”) who took refuge in Germany to flee the turmoil of the Islamic revolution. His father, a computer scientist, gave him his first computer when he was 10 years old.

Young Hossainpour began to use the machine to make sports bets, but his father – “an upright man, a bit old school” – strictly forbade him from this activity. “If you want the computer to help you make money, first learn to code,” his father warned. So that’s what he did.

Largely self-taught – like many members of the first generation of cryptocurrency moguls – Hossainpour discovered the gaming scene, launching his first YouTube channel at the age of 13. But he soon wanted to go beyond simply offering online tips for playing Grand Theft Auto. He started designing custom web pages on WordPress, charging “barely 30 dollars a page.” One day, in 2014, he received his first payment in bitcoins.

His brain began spinning when he discovered this new currency. It was completely virtual – almost clandestine – and could be minted at home to be exchanged with members of a community of technological entrepreneurs. By the end of 2015, he took a decisive step: investing nearly €40,000 into bitcoins.

His parents asked him if this was legal… if it was “real” money, or just a scam.

“My father came from a very rich family that was impoverished by the revolution,” explains Hossainpour. “Maybe that’s why he doesn’t give too much importance to money. He always told me that the most important thing was for me to be careful, to continue with my university studies and not to lose sight of the fact that those millions were nothing more than numbers on a screen.”

In any case, Hossainpour used his rising numbers as a hook to increase his fortune, selling himself online as an example of success. While his financial YouTube channel generally offered relatively sensible advice – such as “invest only what you have left over, nothing you need to live on or to meet the needs of your family” – the photos in which he appeared, at just the age of 20, behind the wheel of a Rolls-Royce or a Lamborghini, or smoking Cuban cigars, told a very surreal story.

#universalcryptoworld

The US Securities and Exchange Commission began cracking down on crypto in 2017. At the time, there was a vogue for what were called ICOs, initial coin offerings, in which some crypto company or project would raise money by selling crypto tokens to public investors. The ICO promoters — the people behind the crypto project — would put out a white paper describing their project and promising brilliant innovations and huge profits, and they would sell a bunch of tokens for money. There would generally be very little in the way of disclosure or investor rights. For promoters, the ICO was attractive because it was a way to raise a lot of money from enthusiastic and gullible retail investors without following securities laws. Many, many, many ICOs turned out to be complete vaporware, either frauds or functionally indistinguishable from frauds.

For the #SEC the ICO was obviously illegal: These tokens were obviously securities, and the ICOs were obviously unregistered securities offerings. (Also, many of them were frauds.) And so the SEC started bringing enforcement actions against ICO promoters, basically making them give the money back and promise not to do it again, and the #ICO boom quickly fizzled.

#BinanceTournament #Binance #universalcryptoworld

It appears that the co-founder of Ethereum, Vitalik Buterin, doesn’t trust the security of infrastructure allowing ETH staking. Consequently, in a recent interview, Buterin stated that he would only stake a limited amount of coins to ensure the network is distributed and remain robust against malicious agents who might try to take over the platform, reversing transactions.

Vitalik Buterin Has Doubts On Ethereum Staking

Buterin has raised concerns about the potential risks of ETH staking through third-party infrastructure, specifically regarding the exposure of private keys and the danger it poses to his entire stake. He believes that implementing a multi-signature system could provide better protection. However, the current process is more difficult to set up, leading to his increased caution.

In a multi-sig system, users have their private key to sign transactions. A specific number of signatures must be provided to approve a transaction, which varies based on the Ethereum wallet’s configuration. This setup boosts security and reduces the risk of unauthorized access to funds.

During the Bankless Podcast, the co-founder explains:

Probably the biggest reason why I personally am not just staking all of my ETH, that I’m instead staking a fairly small portion, is because if you stake your ETH, it has to be all out, like the keys that access it have to be public on some system that’s online, and for safety, it has to be a multi-sig, and multi-sigs for staking are still fairly difficult to set up, and it gets complicated in a bunch of ways.

ETH Prices Stable Below $2,000

His remarks have generated a lot of discussion. Most critics are concerned about the entire security framework of Ethereum. After shifting from a proof-of-work to a proof-of-stake system, Ethereum relies on a network of validators who have to stake at least 32 ETH for a chance to approve a block of transactions and earn block rewards and transaction fees. These validators are also needed to secure the network; without them, the blockchain will be susceptible to attacks.

Related Reading: Binance CEO Goes Bullish On Bitcoin – What’s The Inside Scoop?

According to on-chain data, there are over 643,000 validators spread across the globe who have staked over 20.5 million ETH. On average, each validator has staked 32.17 ETH. Notably, the validator count has steadily risen over the years, and the number of ETH staked has sharply increased despite the recent upgrade permitting stakers to unlock their coins.

Charles Hoskinson, the founder of Cardano and one of the original co-founders of Ethereum, said he was “lost for words,” clarifying that all their ADA is staked as expected in a “properly designed proof-of-stake system.”

At the time of writing, ETH prices remain firm and weren’t affected by Buterin’s comments. However, the coin is yet to breach $2,000 and trends below April 2023 highs in early July 2023.

#ETH #Ethereum #universalcryptoworld

July 6 (Reuters) - A string of executives have quit Binance, according to their tweets and media reports, the latest blow for the world's biggest crypto exchange as its battles a slate of legal and regulatory headaches.

Chief Strategy Officer Patrick Hillmann said in a tweet on Thursday that he was leaving the exchange, citing personal reasons. Steven Christie, a compliance executive who joined Binance in May 2022, also tweeted on Friday that he was leaving, saying he was "tired" and that he needed to "lose some weight."

General Counsel Hon Ng has also quit, Fortune and Bloomberg News reported on Thursday, with both outlets citing a person familiar with his departure. Yibo Ling, Binance's U.S.-based chief business officer, has also left, Bloomberg reported.

Binance did not immediately respond to a request for comment on the resignations. Neither Ng nor Ling immediately replied to LinkedIn messages form Reuters.

Last month, U.S. regulators sued the crypto exchange and its CEO Changpeng Zhao for allegedly operating a "web of deception." Binance has said it would defend itself "vigorously."

The exchange is under investigation by the U.S. Justice Department over possible money-laundering and sanctions violations, Reuters has reported.

Fortune, citing a person at Binance familiar with the situation, reported that the executives quit over Zhao's response to the Justice Departure probe. Reuters could not independently confirm this.

Zhao, a billionaire who is one of crypto's most powerful figures, said in a tweet on Friday: "Yes, there is turnover (at every company). But the reasons dreamed up by the "news" are completely wrong."

Hillmann, who joined Binance in 2021 as its top communications executive, became its chief strategy officer in October last year. After Zhao, he was Binance's most outspoken advocates on social media.

"I've taken this company through a lifetime of industry crises and regulatory challenges," Hillmann tweeted, citing a string of corporate failures to hit crypto last year. "Despite all of these challenges, the company has continued to grow and thrive."

Reporting by Tom Wilson in London and Jaiveer Singh Shekhawat in Bengaluru, Editing by Louise Heavens

#universalcryptoworld #Binance

Is the US out to kill crypto?

By Natalie Sherman (Business reporter, New York)

Maybe.

Three years ago, the majority of the firms in the sector that Andrew Durgee's company invested in were based in the US.

This year, he estimates that just one out of every 10 will be - a reflection of his firm's judgement that the country has been growing increasingly hostile to digital assets such as cryptocurrencies and tokens.

"The administration really has a target on the industry," says Mr Durgee, managing director of the crypto division for tech firm Republic. "The regulatory uncertainty makes the investments in the US higher risk."

The sector was already under pressure, after prices of virtual currencies collapsed last year. Further damage came from the meltdown of several high-profile firms, including FTX, run by the so-called "Crypto King" Sam Bankman-Fried, whom prosecutors have accused of conducting "one of the biggest financial frauds" in US history.

Jolted by the turmoil, US regulators stepped up their policing of the sector, which authorities say has been on notice since at least 2017 that their activity runs afoul of US financial rules intended to protect investors.

The campaign has yielded a steady drumbeat of charges against crypto firms and executives, alleging violations ranging from failing to register properly with authorities and provide adequate disclosure of their activity to, in some cases, more damaging claims such as mishandling of consumer funds and fraud.

Bitcoin, which represents the biggest chunk of value in a sector in which thousands of currencies have circulated, is viewed by officials as a commodity, like gold. That means it has been largely unaffected by the current regulatory debate, which hinges on the legal question of what constitutes a "security" - an investment like a stock or bond that is overseen by the SEC.

The efforts have instead ensnared firms issuing tokens or coins to raise money - and increasingly the exchanges on which such digital assets are bought and sold, which often hold customer funds, execute trades and engage in other activity that is separated in traditional finance.

The crackdown culminated this month in legal actions against two of the biggest platforms: Coinbase and Binance.

US sues Coinbase as crypto crackdown widens

Binance accused of 'web of deception' in US

Do Kwon: US regulator charges 'cryptocrash' boss with fraud

Gary Gensler, the chairman of the Securities and Exchange Commission, defended the moves this month, comparing the state of affairs in the industry to the 1920s, before the US put in place many of the rules in question: "Hucksters. Fraudsters. Scam artists. Ponzi schemes. The public left in line at the bankruptcy court."

Will Paige, research analyst for Insider Intelligence, says sentiment has soured significantly since 2021, when the industry was worth more than $3 trillion (£2.4tn) by some estimates and seemed poised for wider acceptance.

"It's very much back on the fringe of finance," he says. "Trust in the system is battered and it's definitely gotten worse."

SEC chairman Gary Gensler has said the sector is rife with "hucksters" but critics say he has been unwilling to engage with the industry

In the wake of the lawsuits, customers yanked billions of dollars of funds. US banks limited their work with Binance, forcing it to stop accepting US dollars and Robinhood, the trading app, said it would stop listing certain assets named in the lawsuits, citing the "cloud of uncertainty" surrounding the tokens.

Critics accuse the SEC under Mr Gensler of hostile "regulation by enforcement" aimed at boosting his own political profile.

They say that despite repeated efforts by the industry to propose new rules, the agency has refused to acknowledge the distinctions between different types of crypto firms and the characteristics of the technology, like decentralised automated processing, that challenge existing frameworks.

"It's been a very frustrating experience," says Bart Stephens, managing partner of Blockchain Capital, a venture capital firm that has invested in hundreds of crypto firms, some of which he says have been struggling to find banks willing to do business with them. "There is no doubt a regulatory attack is going on."

Bill Hughes, senior counsel of Consensys, a Texas-based software company that uses crypto's blockchain technology, puts it even more bluntly: "The SEC has essentially determined that on its watch crypto shouldn't exist in the United States anymore."

Whether the SEC's moves could actually kill the industry - in which by at least one estimate one in every six Americans has invested - is another question.

Crypto's wider market value remains roughly a third of what it was at its peak. Trading volumes have plunged and developer interest is falling. Trust remains low. The failures in March of some of the few traditional banks willing to do business with it marked a further blow.

Hilary Allen, a law professor at American University, thinks crypto is inherently susceptible to boom-and-boost cycles and manipulation by insiders, and thinks it should be banned. She says the SEC's actions could help re-confine crypto to the realm of tech enthusiasts, given the wider state of the industry.

"If we combine these enforcement actions with waning trust from the public, with possibly waning interest from venture capital, then maybe there isn't a future," she says.

Coinbase chief Brian Armstrong is among the crypto firms who has threatened to leave the US over its regulatory approach

But Mr Stephens, who has weathered two "crypto winters" already, says he thinks the future remains bright - if at risk of ending up overseas, given America's current approach, which is seen as less friendly than other jurisdictions, including the UK and the EU.

He points to Bitcoin's price, which is hovering around 2020 levels, but has gained significantly from the start of the year. Ether has also risen.

Some indicators tracked by venture firm and crypto-investor Andreessen Horowitz, such as the number of addresses active on blockchain and the number of smart contracts being executed, are also climbing.

"We're not seeing founders stop forming new companies or protocols," says Mr Stephens, who says Blockchain Capital invested more money in the first three months of 2023 than in any quarter in the previous 10 years, as prices fell and rival firms backed away from the sector.

Even if the sector thrives outside the US, losing the American market would severely limit its prospects, warns Gina Pieters, a crypto expert who teaches at the University of Chicago.

"It would be a mistake to think that the US… could kill the industry. It can absolutely, though, make the crypto industry smaller," she says.

Many in crypto are hoping for a reprieve - from the courts, which could decide the SEC has overstepped its authority; from Congress, where draft legislation for the industry is under review; or from a change in the White House, which could prompt a policy reversal.

However those questions get decided, the issues are finally coming to a head, says Angela Walch, a research associate at the University College of London Centre for Blockchain Technologies.

"We are at a real inflection point," she says. "The showdown is here."

#BinanceTournament #universalcryptoworld #SEC #Binance

$BTC $ETH $BNB

Are you familiar with the stock market? How about cryptocurrencies? Would you like to make $100 a day trading cryptocurrency? 

Cryptocurrency trading follows the same concept as conventional and stock trading. It works like day trading, where you buy and sell stocks or currency on the same day. 

It seems simple enough, right? If only things were that simple in cryptocurrency online trading, every trader would leave their 9 to 5 jobs and start analyzing and playing the profitable market. 

A good amount of math is involved, which may or may not be good news for you. Prediction algorithms, keeping up to date with market trends, analysis, and a steep learning curve are just some things you need to consider, understand, and learn if you want to invest and earn money in cryptocurrency trading, especially for beginners.

Check out this article to learn how to trade cryptocurrencies and avail yourself of some crypto trading tips to make that 100 bucks, or more, from cryptocurrency trading. 

Let’s jump in!

How Does Trading Cryptocurrencies Work?

You’ll need to spend ample time learning how to trade and gaining experience in the crypto trading world, and even then, as unpredictable and volatile as the market is, one can be too sure if the chart will go up or crash in front of your eyes.

It works by purchasing a cryptocurrency through a legitimate exchange market or platform. Then, store that cryptocurrency in your digital wallet. Like stock trading, you can go long with your asset or short your position. 

In other words, if you think the value will increase over a specific period, you buy and hold the cryptocurrency long-term, hence the term “going long.” 

But, if you think the value will decrease at a certain point, you aim for the asset’s maximum value and sell it at a profit; you, therefore, go short. You were able to sell your asset, making money and taking the profit home. 

This decision is like one of those TV shows where you have to pick three boxes, and the host constantly makes the contestants second guess. That’s what it feels like at the start.

What Are The Requirements For Trading Cryptocurrencies?

The first and foremost requirement for trading in cryptocurrencies is patience. Hard to believe? I know what you might be thinking, I’m not the Bob Ross of crypto trading, but this is genuine and sound advice. 

Many people jump on the hype train, thinking it’ll be a walk in the park. Earning money and hitting those profits is too easy. But there are a lot of highs and lows in cryptocurrency trading. Everyone can handle the highs, but when the lows hit, your determination is tested.

Be patient and learn about the market to ensure you don’t fall into that category. Start small so it won’t affect you even if you make mistakes and lose money. Instead, taking you to greater heights will be a learning experience. Eventually, you’ll learn to trade and make money in this trading game. 

How Can I Make $100 A Day Trading Cryptocurrency?

There are specific trading strategies that you can use to make $100 a day. We’ll go through all of them one by one. 

Depending on where you lie on the spectrum of dealing with cryptocurrencies, there are a few routes that you can take. 

So, what steps must you take to make $100 a day trading cryptocurrency?

1. Trading

The first thing you need to know is the volatility of cryptocurrency. 

One minute the coin you’re holding is going up; you return from lunch to find out that the price has decreased by 80%. That is how much the cryptocurrency market fluctuates. You must know if a dip is a correction in the market or just a part of the daily volatility.

You need to be on your toes to make money through trading. You should be skilled at using your chosen cryptocurrency trading platform to understand the performance charts and then mix it up with your experience to make a solid judgment call. 

Trading cryptocurrencies for quick cash is mostly done in the short term. Eventually, you’ll be good enough to make more than $100 daily through trading. But make no mistake; it takes time and experience to master this skill well.

2. Investing

The secret to trading and investing is all about buying and holding. 

As this whole industry is very new, the growth potential is big, so holding cryptocurrency in the longer term is one of the best ways to make money. 

You don’t need to be concerned too much about the daily, weekly, or monthly changes in the market as you target a longer date before you sell off your asset.

Unlike trading, what you need to focus on in investing is stable cryptocurrencies, such as Ethereum and Bitcoin. Going for newer options is not recommended because they haven’t been around long enough to be considered a stable and safely appreciating asset. 

3. Mining

Mining is when new transactions are locked into the blockchain, solving sophisticated math problems. The first computer to solve the math problem verifies the transactions and gets cryptocurrency as a reward.

Mining doesn’t require any analytical skills or research for trading platforms. You don’t have to look out for fluctuations. All of that comes later when you have the currency in your possession. The procedure is pretty straightforward but requires a lot of technical knowledge and a good amount of capital. Setting up a mining rig is not cheap, and acquiring the necessary hardware is a challenge, primarily due to the ongoing global chip shortage. 

4. Peer-To-Peer Lending 

Peer-to-peer lending allows you to profit without selling or trading your coins. How it works: you lend the cryptocurrency you have, and, in turn, you get a guaranteed return. 

Smart contracts are also in place to ensure safe and secure lending. Many crypto trading platforms offer this service, such as:

5. Staking

For the last option, we have staking. This passive income method is safe; you can keep your coins while earning income just by holding these coins.

With staking, you keep your digital currency in your web wallet and dedicate it to a specific network. Then, that proof of stake network uses your crypto to validate the transaction held on it. Think of it as a more efficient method than mining, and you get paid like how you would receive interest from a bank. 

These are some ways to utilize the coins or capital you have to make a daily profit. But wait, there is more. There are specific trading strategies that you can use on these exchanges or trading platforms to make $100 a day. 

For these sure-fire strategies to work, you need a minimum of $1,000 as an investment. These strategies are for spot trading. First, you must figure out a few cryptocurrencies that manage a minimum of 10% daily raise. 

After that, you invest $1,000 in the one you feel has the best chance of going up. Place a tracker for a 10% raise, and as soon as it hits that marker, the application will notify you, and you can sell it, instantly making a profit of $100. Just rinse and repeat this process.

You can apply the same strategy with $500 and $2,000 by placing a tracker for a 20% and 5% raise, respectively. Both these options will make you $100 every day. 

You need to remember that fluctuation can happen at any time, so make sure you have your notifications on and be vigilant. 

Also, depending on your chosen platform, you’ll have to pay a trading fee. 

Best Platforms To Trade Cryptocurrencies

To buy or sell cryptocurrencies, you must first open a reliable account with a cryptocurrency exchange. You can access the required tools for trading digital currencies and tokens from these exchanges, such as Ethereum, Dogecoin, and Bitcoin. 

Things To Remember In Trading Cryptocurrencies

You must remember a few things to start trading in cryptocurrencies: patience, consistency, research, risk management, and diversity. 

Good things come to those who wait. Remain patient and consistent. You won’t understand everything on the first day, and neither will you become a trading guru overnight. Time and experience are the best teachers, and these will be your best investment.

Before diving in, research the topics, platforms, currencies, and software that will serve you well. This way, you’ll cut your potential losses since you came prepared and ready to face the challenges of the trading world.

Play smart. Don’t invest more than you should. There is a good chance you’ll lose all that money. Only invest what you think you can afford to lose. Don’t follow and be influenced by others. Everyone is in a different financial situation. Instead, manage your risk; with time, you can invest more as you earn more. 

Lastly, never put all your eggs in one basket. Identify a few currencies that offer identical or nearly identical daily raise percentages. You can also try other trading opportunities, like Forex brokers (just be sure to learn how the forex market works).

Investing in 2 or 3 cryptocurrencies is not a bad strategy if you have enough capital. 

Since the market is volatile, you can never be sure where it’ll end up 10 minutes, an hour, a week, or a year from now. 

Frequently Asked Questions (FAQs) – Make $100 A Day Trading Cryptocurrency

Are Cryptocurrencies Legit?

Cryptocurrencies are not FDIC-insured. The legality of cryptocurrencies is still a hot topic in the community. There have been lawsuits regarding this. 

On the other hand, people have become millionaires overnight due to cryptocurrency; the cars these crypto investors drive and the homes they live in are very real.

How Much Do Crypto Traders Make?

Crypto traders can make roughly $18,000 to $188,500 per year. 

The actual number can only be speculated due to many factors, such as the amount invested, the currency invested, etc.

Which Coin Is The Best For Trading Cryptocurrencies?

The best cryptocurrencies for trading as the ones that have been around the longest and are the most stable. That would include Bitcoin, Ethereum, Tether, etc. 

Conclusion – Make $100 A Day Trading Cryptocurrency

Day trading is one of the best ways to make money from the crypto markets. Remember that day trading in any market involves risk, whether stocks or crypto. 

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