Tag Archives: cryptocurrency

Paxful Platform Review Is It Safe or a Scam?

Paxful Platform Review – Is It Safe or a Scam?

Do you know what’s challenging? Converting your fiat into cryptocurrency and vice versa. 

If you’re American, you can buy bitcoin with 1 click using Coinbase. How about buying bitcoin anonymously? Let me introduce you to Paxful, which is a popular P2P exchange platform. Paxful allows you to buy bitcoin, hassle-free. The website is like the “eBay of cryptocurrency”. The platform connects you to other people, who are looking to buy or sell cryptocurrency. Thus, you can shop around and find the best value. Using Paxful is easy, that’s why the platform is popular. 

  • Is Paxful safe to use?
  • How secure is it?
  • Who is behind Paxful?

In this review of Paxful platform, I will answer your most pressing questions and more. Let’s investigate … 

The team behind Paxful

The founder of Paxful.com. Say something nice about him.Here’s a picture of the founder. When there are faces behind the company, it makes me feel more safe using them. I have names in case I need to report Paxful to the police (I’m kidding!) Paxful was founded in 2015 by Ray Youssef and Artur Schaback. I did a bit of digging around LinkedIn and here’s what I found ….

Ray Youssef is the CEO and he was an ex software engineer. Artur Schaback, the co-founder of Paxful, was the founder of Kaizern, a software company that specialized in blockchain app development. Before Paxful.com, Paxful was involved in the bitcoin ATM industry. They also own Netcoins.app According to their website, they have offices in New York City, Hong Kong, Manila, and Talllin. Nice!  Okay, sounds great. But why should you use Paxful instead of Binance? Good question. Paxful differs from Binance in many ways. 

How useful is Paxful? Examples …

It’s Christmas and your relatives are visiting; they’re gorging themselves on turkey and baked beans. “Happy Christmas, sonny boy! Here are some gift cards and sweaters for you!” says Uncle Jim, half drunk. He hands you a fistful of gift cards. But you want cash and crypto, not some useless gift cards to buy more pizza. You want to stack your bitcoins and retire on a private island before your 30th birthday. 

Imagine another scenario: 

An African man in Japan needs to send money back home to Africa but he doesn’t want to pay the outrageous 8% remittance fee. Is there another alternative? Oh! Here comes Paxful: you can exchange your gift cards for crypto. Or you can sell Japanese fiat to buy crypto and send the money home (and bypass the outrageous 8% remittance fees)  (What I especially like about Paxful is that you can sell “obscure” Giftcards like Chili restaurant gift card and Forever 21 gift cards. It’s like they have the whole gift card market covered!) You can do cash in person, cash by mail, cashier’s check, Money Gram, Bitcoin ATM. Wow!  Hmm, that sounds wonderful. What about the process of buying crypto on Paxful? How does that work? 

I’m glad you asked because I’ll walk you through the process … 

How to buy and sell on Paxful?

Always trade with a merchant that has a high customer feedbackYou can buy crypto on Paxful in 3 simple steps:

  1. You see a seller you like, start a trade
  2. You send the payment and wait
  3. The seller sends you the crypto

How do you know that the seller won’t run away with your crypto? Paxful acts as an escrow, which ensures the safety for you and the seller. Note: Paxful isn’t going to reimburse you if you’re doing business with a scammer. Always take precautions! (I’ll give you some tips below)  When the trade is successful, leave the user a rating and comment. And tell the seller to do the same for you. After all, the feedback is a testimonial. The better your reputation, the easier the trade. People trust you more because your account has a good reputation. Trading on Paxful is simple and streamlined. But wait, there’s more! I’ll talk about the fees, how to bitcoin anonymously, and precautions you should take when trading. 

What are the fees like?

If you’re buying, I have good news for you. It cost you $0 fees to buy because the burden is on the seller. If you’re buying bitcoin using bank transfer, credit card, online wallets, cash, or gift cards then there are no fees (however, the bank will charge you a service fee, won’t they …) However, if you’re going to use a debit card to directly buy bitcoin then the cost is going to be higher. I would recommend to you another site like CEX or Coinmama if you’re buying using debit directly. What if you’re selling on Paxful? There’s a fee. However, if you’re the seller, then the fees range from 0.5% – 5%. Debit cards, cash, and online wallet are 1% fee and gift cards range from 3-5%. Here’s another important question …

What about ID? Could you buy bitcoin anonymously?

You can use cash and gift cards to buy BTC anonymously. Paxful won’t ask you for ID if you have a tier 1 account. And if you’re buying BTC with gift cards, the merchant won’t ask for ID. However, if you’re using bank transfer then some merchants will require ID. If you want to buy anonymously, you can always meet the person at your local coffee shop and exchange coins — “Hey! Here’s my cash. Now gimme some coins please …”

Is Paxful secure? 

Paxful hasn’t been hacked. When it comes to security, you need to keep your account secure. This means having a good password and using 2FA. The theft case in Paxful is minimum and there’s 24/7 customer service on the website, should you need any help. 

Warning! Take these precautions when buying or selling

Only do business with merchants that have good feedbacks! The #1 problem is dealing with the merchant. You must only do business with people who have a high rating. This means the account is aged and has plenty of positive customer feedback. What if you send the money but the person doesn’t you the bitcoin? You can open a dispute and a moderator will look into the case. Hopefully, you won’t have to dispute. Oh yeah, there have been cases of Paxful freezing customers’ accounts. You shouldn’t leave your bitcoin on Paxful’s wallet. As the old saying goes “not your wallet, not your bitcoin.” 

Prevent your account from getting hacked! 

Hackers have hacked into Paxful accounts and sold them in the dark market. Note: Paxful.com wasn’t hacked. Instead, the hackers tricked the users into giving their usernames and passwords via phishing attack. So you want to make sure your account is safe with 2FA (2 Factor Authentication). You also need a strong and secure password. If possible, use Linux or macOS instead of Windows. Side note: I have heard stories of Paxful locking an account. But because the algorithm flags your account for being suspicious. For example, using Paxful to launder money or your account has too many disputes. If you’re using Paxful to only buy bitcoin, you should be fine. 

The #1 scam to watch out for

If you’re selling crypto on Paxful, you need to watch out for scams.  What is a common scam? Someone sells you a gift card but the card is already redeemed. Ouch. Avoid headaches by only doing business with well-established accounts. Carefully select who you’re doing business or else you’ll regret it. 

What do I like about Paxful? 

Paxful makes buying crypto easy. Moreover, selling gift cards for bitcoin is awesome. Also, the fees are reasonable. The website is intuitive to use, and the user interface design is aesthetic. Paxful looks modern, unlike other websites that look ancient. Yes, I’m looking at you, Localbitcoins.com. Customer service is there if you need help. There are moderators to handle disputes. The merchant doesn’t send your bitcoin? No problem, just summon a moderator. I’m a veteran in the crypto space and I have noticed the shift: people using Paxful instead of Localbitcoin. Perhaps it’s because Localbitcoin has failed to innovate. Paxful makes it so easy and secure to buy crypto. Yes, I’m happy with their service. There is no country restriction on Paxful. For example, if you’re American, you can’t trade on some of the best crypto exchanges like Binance However, since Paxful is a P2P exchange, you’re free to trade to your heart’s content. That’s what I call freedom! 

The final verdict on Paxful

In my research, Paxful seems legit. As of 2020, Paxful is still on the rise. 220,000 visitors a month reach the site, so they’re doing something right. Buying crypto on the site is an easy and enjoyable experience. Paxful is a legal company: they have 4 different offices on 3 continents and are a registered company with the face of the CEO on the company’s website. I have tried finding scandals or negative reviews against Paxful and it’s mostly about users that complain about locked accounts (they’re doing fishy things with the accounts, that’s why they’re locked out) Paxful is not a scam. But watch out for scammers on Paxful and you should do okay.

Article Produced By
Harsh Agrawal

About Harsh Agrawal:

An award-winning blogger with a track record of 10+ years.  He has a background in both finance and technology and holds professional qualifications in Information technology. An international speaker and author who loves blockchain and crypto world. After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra. Join us via email and social channels to get the latest updates straight to your inbox.

Expertise:

Harsh Agrawal has an experience of 12+ years in fintech, and 5+ years in the filed of Blockchain and Bitcoin. He has also moderated the panel of Blockchain experts, and attended international blockchain events like BTCMiami, Token2049 to name a few.

https://coinsutra.com/paxful-review/

Heiko Closhen, Entrepreneur

Putin signs law legalizing Bitcoin

Putin signs law legalizing Bitcoin

Digital financial assets, including cryptocurrencies, will be permitted to сirculate legally in Russia soon,

but if you’re planning to go shopping with bitcoin, or other variants, forget it. They won’t be legal tender. According to the new rules, due to come into force in January 2021, Russian citizens will be allowed to buy and sell bitcoin and other digital denominations. Until now, various cryptocurrencies have been in a “grey zone,” as the state did not recognize their existence, but no penalties for mining or buying them existed either. The law signed by President Vladimir Putin on Friday recognizes the existence of bitcoin, tokens and other digital assets. However, it does not remove restrictions to allow individuals to use cryptocurrency as a legal tender.

The law does not give cryptocurrencies the same rights that the ruble or any other fiat currency have. After the new law comes into force, it will still be impossible for individuals to use digital currencies as legal tender in Russia. Only financial organizations hand-picked by the Central Bank, as well as stock exchanges, will be able to do so. Still, the new law reiterates that no punishment for operations with bitcoin is envisaged. 

Cryptocurrency is described by lawmakers as a means of payment and a means of saving, as an investment, but it can’t be used to pay for goods and services in Russia,” Anatoly Aksakov, head of the State Duma Committee on the Financial Market, told RIA Novosti news agency.  The bill was passed by the State Duma, the Russian Parliament’s lower chamber, in July 2020. Aksakov said at the time that starting in 2021, some large Russian companies planned to issue their own tokens.

Article Produced By
Bitcoin News

TheBitcoinNews.com – Bitcoin News source since 2012

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest. Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.

Ahttps://thebitcoinnews.com/putin-signs-law-legalizing-bitcoin/

Heiko Closhen, Entrepreneur

CRDT: Incentivising rewards for high-quality content

CRDT: Incentivising rewards for high-quality content

CRDT is a new project that we are very excited to share with you.

CRDT is its very own cryptographic token and one that is sure to grow throughout the crypto community. Over the next couple of days/weeks/months, we will take an in-depth look into the token on how it works and how it will benefit you as a trader.  CRDT tokens will be distributed to content creators and contributors to the website into their token digital wallet. Tied with the CRDT token payment card program, this will further give more purpose for contributors who participate in the ongoing success of the media offering. Remuneration of token will help give everyone the help and mutual interest that they need in order to develop the economy around token and CryptoDaily.

The overall network values many things for its token; however, innovative and unique content production that is preferred by our readership is a necessity for the ongoing success of the offering. In order to make sure everyone knows what the rewards are and why they are incentivised to continue their work for CryptoDaily, a clear rewarding system is necessary. This is why the content reward system was created with this approach and solution also helping us develop and extend the utility of the token. Since the media offering was founded in 2017, there have been more than 85 contributing authors to the website who have produced and delivered content to us with varying frequencies but always high-quality. This content includes breaking news and featured stories as well as market analysis and industry solutions. The list is really endless. All this news is geared towards Cryptocurrency and the world of blockchain as well as token economy.

Article Produced By
Robert Johnson

Robert is a keen investor with a particular interest in cryptocurrencies. He has been involved in the industry for many years, and because of this, has gathered a lot of knowledge surrounding this area. He studied English at university level and has a passion for writing. He loves being able to combine his two mains interests on a daily basis.

https://cryptodaily.co.uk/2020/08/crdt-incentivising-rewards-for

Heiko Closhen, Entrepreneur

How to Speculate on the Price of Gold Using Cryptocurrencies

How to Speculate on the Price of Gold Using Cryptocurrencies

Bitcoin: BTC Could Trade Sideways For A While (September 2019)

How high could Bitcoin go?
Bitcoin Bulls And Bears Finally Fight For Control
Earlier this week, gold spiked to over $2,000 for the first time in history.
The precious metal has been on the climb for more than two years straight, during which it has almost doubled in value, generating an incredible return for investors. 

Earlier this week, gold spiked to over $2,000 for the first time in history. The precious metal has been on the climb for more than two years straight, during which it has almost doubled in value, generating an incredible return for investors. Now, thanks to a cross-over between the traditional finance and cryptocurrency industries, investors can speculate on the value of gold using cryptocurrencies instead of fiat. Litecoin: Could 2019 be the end of LTC? : BTC Surprises Everyone Again (December 2019)Bitcoin: BTC Bulls Have othing To Worry About Yet (October 2019)

Invest in Gold-backed Tokens

Arguably the simplest way to speculate on the price of gold is by purchasing gold-backed tokens. In essence, these are tokens that are backed by a fixed allocation of gold, such that owning each token is equivalent to owning a fixed amount of gold. The amount of gold each token represents varies from provider to provider, but most stick with a ratio of 1 token equals 1 gram of pure investment grade gold. As such, the value of each token is usually roughly equivalent to the gold spot price, though it can fluctuate based on the economics of supply and demand, and several other factors. These tokens can usually be bought directly from the company or from third-party exchange platforms and can be traded or redeemed for real gold whenever the holder chooses. 

Though there is a wide range of gold-backed tokens available, it’s important to ensure that the ones you’re investing in meet certain basic criteria. The platform should offer a system to easily verify that it has sufficient gold in reserves to back the circulating supply 100%. CACHE Gold (GCT), for example, allows users to easily check how much gold it has in each of its vaults, with its GramChain® asset tracking system. Other platforms typically rely on irregular allocation reports to demonstrate their gold reserves. Beyond this, you should also consider the minimum redemption amount — or the minimum number of tokens that can be redeemed for physical gold. For CACHE Gold, this is 100 tokens (100 grams), whereas for Tether Gold (XAUt) this is 430 tokens (430 troy ounces). 

Trade Spot and Derivatives

For those looking to profit from the day-to-day fluctuations in the price of gold and gold-backed tokens, there’s also the option of trading gold derivatives and gold-backed tokens on a variety of cryptocurrency exchanges. Gold-backed tokens can be traded on most popular cryptocurrency exchanges. (Image: Huobi Global) Trading gold-backed tokens is no different from trading any other cryptocurrency. Once purchased, these tokens can be transferred to any cryptocurrency spot exchange that supports the cryptocurrency, where they can be traded against other cryptocurrencies or against fiat (where supported). Traders will then be able to capitalize on fluctuations in the token value as a result of changes in supply and demand, and the gold spot price. 

It’s also possible to trade a variety of gold derivatives using cryptocurrencies. These are essentially contracts that allow traders to speculate on the price of gold without actually purchasing or holding any gold or gold-backed tokens. These are typically considered more advanced financial instruments, however, since they can usually be traded with leverage — which can dramatically improve profits (or losses). 

Buy Gold Using Cryptocurrencies

Arguably one of the simplest ways to invest in gold and other precious metals is by simply purchasing physical gold bullion — essentially investment gold in the form of bars, ingots, and coins, using cryptocurrencies. Depending on where you live, the range of gold products available to you can vary considerably. Some of the more popular websites, including Money Metals and European Mint, offer a range of investment gold, ship worldwide, and accept payment in Bitcoin (BTC). Others, such as Bitgild and JM Bullion ship to a restricted range of countries. 

Though buying physical bullion with gold is a relatively simple endeavor in 2020, there are some downsides to the practice. For one, you’ll usually pay above spot price for the gold. This can range from just 1-2% above spot, to potentially much more depending on the vendor you choose. You will also likely need to pay shipping and insurance costs, which can become quite costly if you’re shipping large quantities of gold internationally. Physical gold also isn’t particularly liquid. This means you want to be able to liquidate your holdings easily, such as for trading purposes, or to capitalize on a temporary decline in value before buying back in. This is part of the reason why gold-backed tokens have achieved such popularity as an alternative. 

Article Produced By
Adrian Barkley

Adrian has been leading teams in the finance sector for over a decade. He is highly experienced, and is responsible for ensuring that the latest news is delivered to you as it is breaking. He has a keen interest in virtual currencies, and has even made investments himself, so is incredibly passionate when it comes to writing about this topic.

https://cryptodaily.co.uk/2020/08/how-to-speculate-on-the-price-of

Heiko Closhen, Entrepreneur

Smaller Bitcoin Holders Are Increasing Controlling More of BTC’s Supply Data Shows

Smaller Bitcoin Holders Are Increasing Controlling More of BTC’s Supply, Data Shows

 Data shows that the amount of bitcoin smaller entities hold has more than doubled over the past five years,

while BTC whales have seen their holdings decline significantly over the same period.According to on-chain analytics firm Glassnode, the percentage of bitcoin’s supply held by entities with 10 BTC or less has grown from 5.1% to 13.8% since June 2015, while entities with 100 to 100,000 BTC – colloquially known as whales – have seen their bitcoin holdings drop from 62.9% to 49.8%. The figure suggests that as bitcoin matures and adoption rises, the cryptocurrency is also becoming more decentralized, as whales and large investors become less dominant in the market. Part of the decline in the percentage of BTC held by whales can likely be attributed to inactive wallets, as early adopters mined 50 BTC per block with ease, but many became inactive.

Despite being inactive, some still pay attention to the market. As CryptoGlobe reported earlier this year an early bitcoin miner signed a message on the Bitcoin blockchain with over 140 different wallets, calling the self-proclaimed Satoshi Nakamoto Craig Wright a “liar and a fraud,” and signing off with “we are all Satoshi.” In its report, Glassnode pointed out that “control of bitcoin’s supply has been steadily shifting towards smaller entities.” Around 18.6 million BTC are in circulation today, out of the 21 million bitcoins that will ever be issued. An estimated 4 million coins are believed to be lost.Bitcoin whales, it’s worth noting, have in the past been accused of manipulating the market through various tactics, which include wash trading, pump and dump schemes, and more. In a report published back in June, Glassnode revealed that the number of BTC whales with over 1,000 coins in their wallets had risen to 1,882, from around 1,650 in January. The average balance by each whale has decreased over said period, so much so bitcoin whales now hold, on average, less than what they did in 2016.

Article Produced By
Francisco Memoria

Francisco is a cryptocurrency writer who's in love with technology and focuses on helping people see the value digital currencies have. His work has been published in numerous reputable industry publications. Francisco holds various cryptocurrencies

https://www.cryptoglobe.com/latest/2020/08/smaller-bitcoin-holders-are-increasing-controlling-more-of-btcs-supply-data-shows/

Heiko Closhen, Entrepreneur

Pantera CEO Dan Morehead Reveals Hedge Fund’s Biggest Crypto Positions

Pantera CEO Dan Morehead Reveals Hedge Fund’s Biggest Crypto Positions

-Pantera Capital CEO Dan Morehead revealed the hedge fund's largest crypto positions. -Morehead said a market inefficiency has failed to properly price bitcoin following May's halving.

 The chief executive officer for crypto hedge fund Pantera Capital has revealed some of the firm’s biggest crypto positions.

Speaking in a recent interview with Thinking Crypto, Pantera CEO Dan Morehead said the venture’s firm’s largest allocations were in bitcoin, followed by ethereum. Morehead went on to list polkadot, filecoin, augur, and 0x as altcoins the firm had allocated significant positions in. He also claimed to personally oversee and invest Pantera’s $600 million in assets in the crypto space.  In addition to outlining the firm’s investment strategy, Morehead said he was bullish on bitcoin and noted BTC’s average price increase of 200 percent year-over-year, despite the ups and downs. He argued a market inefficiency had failed to properly price the impact of bitcoin’s halvings. 

He explained, 

Over the past two halvings, there have been very clear positive impulses. They start about a year and a quarter prior to the halving and they go for about 440 days after the halving. And what’s typically happened is the markets have gone up a bit into the halving, and then after the halving, over the next 440 days, they go up a ton.

Morehead said bitcoin was projected to reach $115,000 by August 2021, based upon Pantera’s stock-to-flow analysis of previous halvings. 

Article Produced By
Michael Lavere

Mike is a financial and cryptocurrency journalist for CryptoGlobe covering the industry since 2017. Mike is an alumnus of the University of North Carolina Chapel Hill.

https://www.cryptoglobe.com/latest/2020/08/pantera-ceo-dan-morehead-reveals-hedge-funds-biggest-crypto-positions/

Heiko Closhen, Entrepreneur

A Slightly Stronger Dollar Halts Bitcoin but Long-Term Outlook Remains Unchanged

A Slightly Stronger Dollar Halts Bitcoin, but Long-Term Outlook Remains Unchanged

 On Friday (August 7), the U.S. Dollar Index (ticker: DXY) went up 0.60 (or 0.65) to close at 93.39 due to better-than-expected U.S. jobs growth in July.

On Friday, a press release (titled: “Employment Situation Summary”) by the U.S. Bureau of Labor Statistics, which is part of the U.S. Department of Labor, revealed that “total nonfarm payroll employment rose by 1.8 million in July, and the unemployment rate fell to 10.2 percent.” This report went on to say that “these improvements in the labor market reflected the continued resumption of economic activity that had been curtailed due to the coronavirus (COVID-19) pandemic and efforts to contain it.” According to a report by Reuters, despite the dollar’s bounce on Friday, last week marked “a seventh straight week of declines” for the world’s reserve currency. In fact, since March 19, the U.S. Dollar Index has fallen 9.17%, as you can see in the chart below by TradingView: The Reuters report says that Ronald D. Simpson, who is Managing Director for Global Currency Analysis at Action Economics,

wrote in a note to clients:

The employment report allayed the market’s downside job fears, allowing the Dollar to rally broadly through the N.Y. session.

It seems reasonable to assume that this slight strengthening of the U.S. dollar could have been at least partly responsible for the small declines in the prices of gold and Bitcoin that we witnessed on Friday, with gold closing 1.38% lower at $2,034.80 and Bitcoin currently (as of 11:10 UTC on August 9), trading around $11,685, down roughly 0.75% since just before the release of the U.S. jobs report for July. However, it appears that most analysts are not worried by small price pullbacks for either of these asset classes, and they seem content to remain bullish on both precious metals and Bitcoin as long as we continue to have the current macro environment. Daniel Pavilonis, a senior commodities broker at RJO Futures, provided the following explanation to Kitco News for why gold and silver are going up (and his explanation also applies to Bitcoin which more and more people are starting to view as “digital gold”):

“One of the reasons why the metals are going up is due to the printing up of money. It pushed the real yields into the negative territory down the road. Investors are looking at precious metals as a piece of a longer-term puzzle. As interest rate go lower or negative, investors have money in the bank that will be essentially taxed as they’d have to pay interest on it. What’s the another alternative? This is why people are buying gold, taking delivery of gold bars, and buying futures.” Interestingly, it is not just that precious metals and bitcoin that have been performing very well since around mid March: U.S. Treasuries, oil, and U.S. stocks have also recorded impressive gains during the past few months, with the S&P 500 up 49.8% since March 23. Christopher Stanton, Chief Investment Officer at Sunrise Capital Partners, told Reuters that we are in a

“bull everything” market:

There are very few losers. Only laggards.

And with the amount of money printing that is going to be needed to fight economic impact of the raging COVID-19 pandemic, it does not seem surprising that investors worried about the debasement of fiat currencies and the increasing potential for high inflation in the future would want to hold almost any asset class except cash.

Article Produced By
Siamak Masnavi

Siamak received his PhD in Computer Science from University of London in 1992. He has worked part-time as a freelance journalist since 1986.

https://www.cryptoglobe.com/latest/2020/08/a-slightly-stronger-dollar-halts-bitcoin-but-long-term-outlook-remains-unchanged/

Heiko Closhen, Entrepreneur

Top-Tier Crypto Exchanges Beat Riskier Platforms as Crypto Trading Volumes Recover

Top-Tier Crypto Exchanges Beat Riskier Platforms as Crypto Trading Volumes Recover

 Top cryptocurrency exchanges have seen their trading volumes surge throughout July, so much so these now represent 60% of the crypto space’s total spot volume.

According toCryptoCompare’s July 2020 Exchange Review, Top-Tier cryptocurrency trading platforms, those graded AA-B according to the firm’sExchange Benchmark, have seen their spot volumes increased by 42.1% to $334 billion last month, which helped them surpass lower quality exchanges. Lower-Tier exchanges, according to the report, saw their volumes decrease 38.1% to $224 billion in July. The volume is dwindling on riskier cryptoasset trading platforms as investors likely moved toward safer cryptocurrency exchanges when the crypto market started rising, after bitcoin’s price surpassed $10,000.

As CryptoGlobe reported,Top-Tier cryptocurrency exchanges have been gaining market share over the last few months against those graded C-E on the Exchange Benchmark. In Q4 2019, Top-Tier platforms accounted for 32% of global volumes, while in the first quarter of this year they accounted for 36%. In Q2 2020, these trading platforms saw their share grow to 40% of the total spot trading volumes, while in June the volume was already 46%. Lower-Tier exchanges, over the same period, saw their volumes drop from 68% to 54%. In July, cryptocurrency trading volumes picked up near the end of the month, after BTC finally broke out of its two-month-long range between $9,000 and $10,000.  The move up saw the global trading volume hit $45.3 billion on July 27, making it one of the days with the largest recorded volumes in the crypto space.

The highest spot volumes ever were seen on March 13, as the cryptocurrency market crash that month, which occurred when top U.S. indexes entered bear market territory and the World Health Organization declared the COVID-19 outbreak a pandemic, saw tradersexchange a total of $75.9 billion in a single day. In July, exchanges using the traditional taker-fee model represented 82% of total exchange volumes, while those implementing the controversial trans-fee mining (TFM) model represented less than 18% of the trading volume. Fee-charging exchanges, CryptoCompare’s report adds, traded a total of $456 billion last month, up 0.5% from June, while those that implemented TFM models traded $95 billion, down 32% from the month before.

Article Produced By
Francisco Memoria

Francisco is a cryptocurrency writer who's in love with technology and focuses on helping people see the value digital currencies have. His work has been published in numerous reputable industry publications. Francisco holds various cryptocurrencies

https://www.cryptoglobe.com/latest/2020/08/top-tier-crypto-exchanges-beat-riskier-platforms-as-crypto-trading-volumes-recover/

Heiko Closhen, Entrepreneur

Grandmas On Lightning

Grandmas On Lightning

Is Bitcoin truly inevitable? Or too confusing to ever gain mass adoption? One day, the Lightning Network might provide an answer.

Is Bitcoin Too Hard To Understand?

I’ve spent a huge part of the last three years explaining Bitcoin to general audiences and the most common form of resistance I encounter is: “Bitcoin is too complicated. The masses will never understand it.” It’s a fair argument. Bitcoin is complicated and if you want to reach a competent understanding of the big picture then, at a minimum, you’d better get ready to learn about peer-to-peer networks, cryptography and the history of money.

It’s for this reason that I find it bizarre when I hear from friends in the space that Bitcoin is “inevitable.” There’s a belief that one day the masses will suddenly realize the merits of Bitcoin and adopt it on their own. This is certainly not what happened with me. To get to an understanding of Bitcoin I was comfortable with, I had to spend hours with articles, books, podcasts, videos and debating the concepts online. This content had to be produced by other people. Maybe if Andreas Antonopolous didn’t upload 500 videos or Nathaniel Popper didn’t write Digital Gold, then I might still have been in the crowd saying: “lol scam.”There’s a counter-belief as well, and it’s that Bitcoin is simply too complicated for mere mortals to understand, and that mass adoption will only happen when Bitcoin and the Lightning Network are so simple that grandmas can use it. In The Gates of Bitcoin, John Carvalho calls this the “Grandma’s Razor Fallacy”: the elitist belief that new tech is too complicated and we need to protect people from it for their own good. He also points out:

We’ve seen this play out over and over in Bitcoin’s 11-year story. In 2011, Wikileaks learned how to use Bitcoin very quickly after Visa, MasterCard, PayPal and Western Union cut it off because of threats from the U.S. Senate. Despite Satoshi Nakamoto himself gatekeeping and telling Wikileaks NOT to use Bitcoin to circumvent the U.S. government, Wikileaks did it anyway and it’s estimated it received some 4,000 BTC in donations. Not only did this keep it alive despite a coordinated effort to kill it financially, it gave it a treasure chest that allows it to persist until today.

Another example, and my favorite, is from 2014. The Women’s Annex Foundation (WAF) in Afghanistan used bitcoin to pay their members for their work in writing, software development and video editing. This was under Taliban rule, where women were not allowed to own bank accounts, earn a living or even go to school. Incentives are a powerful thing. When it’s a matter of life and death, people suddenly discover it’s not that hard to download a mobile app and copy-paste an address. Bitcoin suddenly becomes not all that complicated. I want to break down the idea of Bitcoin’s complexity a little further. There are layers to it. Bitcoin is certainly hard to understand, but that doesn’t mean that it’s hard to use. Most people can drive a car or send an e-mail without understanding the internal combustion engine or Simple Mail Transfer Protocol (SMTP). And certainly both of these were considered “too complicated” for the masses. The very idea of “difficulty” can be unpacked further. For now, I’ll break it down into two concepts: Technical Difficulty and Perceived Difficulty.

Technical Difficulty is the skill required to execute something. Like downloading an app, or driving a car or playing the violin. You have to learn to use the tool. Designers can (partially) lower the skill required by creating user-friendly tools. But they cannot eliminate it. Yet when we look at the number of people who can drive cars and use social media, we see that millions of people, including grandmas, are willing to learn complex operations if you can offer them the opportunity to drive to the mall or fight with anonymous people on Twitter.

Perceived Difficulty is the psychological hurdle, i.e., the belief that something is difficult. It’s when someone says: “I don’t understand calculus, it’s too hard.” Then you ask them how long they’ve studied it and they say: “Well I haven’t tried, because it’s too hard.” Perceived difficulty shows up all the time. People will claim that going on a diet or studying for a test are “too hard” when, from a Technical Difficulty perspective, these things are easy. Don’t eat the cake, go to your room and study. The problem really is incentives. People don’t want to study. They do want to eat the cake. Getting them to change behavior has nothing to do with Technical Difficulty and everything to do with addressing why they do or don’t want to do these things in the first place. I’ve encountered Perceived Difficulty many times in Bitcoin. The most glaring times are the repeated examples where people would message me to say that they bought a large sum of bitcoin but kept it on an exchange. Every single time, I would explain that this is a bad idea, and every time I would hear back: “it’s too complicated.” This prompted me to write not one, but two articles. First, on why keeping bitcoin on an exchange is a bad idea, and second, on how to set up a wallet, both as short and simple as possible. I sent both articles to one of those people. Finally, he relented. He downloaded a wallet, backed up his seed phrase and took his bitcoin off the exchange. “Ok fine,” he told me in the end, “that wasn’t so hard.”

With Lightning, we might eventually be able to take the Technical Difficulty of using Bitcoin all the way down. On the Lightning Network you don’t need to think about blocks, confirmations or fees. As the network matures, you may not even have to worry about channels or capacity either. And with products like Strike, you may not even have to know that you’re using Lightning at all. The dream of Lightning is to eventually provide a dead-simple user experience that still gives people the freedom and autonomy Bitcoin is known for. But even if that experience became available tomorrow, the Perceived Difficulty would remain. The good news is that Perceived Difficulty is ultimately a culture. When I was a kid, using a computer was considered so abstruse you needed a “computer course” to be considered competent enough to use one. Today, you are considered functionally illiterate if you cannot use a computer by age ten. But that culture doesn’t change on its own. We need to change it if we want Bitcoin to be all that it can be for those who need it. We need to alter the perception and align the incentives. And then, one day, we’ll have more grandmas in Bitcoin. If you want to see what that looks like, read up about Hodlonaut’s #LNTrustChain. John Carvalho was there (#115), I was there (#171), Bitcoin Magazine was there (#235) and a lot of people who said Bitcoin is too complicated weren’t there.

Article Produced By
Imran Lorgat

Imran is an Actuary in the reinsurance sector who’s worked in South Africa, Europe, and the Middle East. He loves writing about Bitcoin, personal finance, and travel. You can read more of Imran’s writings on imranlorgat.com All views expressed are Imran’s own and neither reflect nor are influenced by the views of affiliated companies.

https://bitcoinmagazine.com/articles/grandmas-on-lightning

Heiko Closhen, Entrepreneur

OKCoin Awards Latest Developer Grant To Marco Falke

OKCoin Awards Latest Developer Grant To Marco Falke

Cryptocurrency exchange OKCoin announced today that the latest contribution from its Open-Source Developer Grant is going to Marco Falke,

who has served as a Bitcoin Core maintainer since 2016 and is one of the most active contributors to Bitcoin’s code. “Marco’s work … focuses on making development more efficient,” Elaine Song, a member of OKCoin’s business operations team who is involved with the grant program, told Bitcoin Magazine. “He is the most active contributor to the Bitcoin code since 2017. He is presently dedicated to the improvement of Bitcoin’s test infrastructure, which ensures the reliability and security of the decentralized network.”

This marks the fourth grant the exchange has made since its program was launched eight months ago. Donations have also been awarded to developers Fabian Jahr and Amiti Uttarwar, as well as open-source bitcoin payment processor BTCPay Server. More than $396,000 has been awarded so far. OKCoin would not disclose the dollar value of this latest grant, but said that this was its largest single donation to date. “As a crypto exchange, we aim to make crypto investing and trading accessible to anyone, anywhere,” Song said. “That objective is made possible by the work of our grant recipients who contribute to the sustainable and responsible development of cryptocurrency infrastructure. Without developers, there is no technical breakthrough. Without a breakthrough, there is no disruption.”

The last few months have seen a notable surge in similar donations, from OKCoin as well as BitMEX operator 100x, the Human Rights Foundation, Kraken and others. It’s difficult to pinpoint a reason for this wave of charitable giving at the moment, but it appears that organizations that rely on Bitcoin are starting to see these grants as critical to the technology’s continued growth. “We don’t see these grants as ‘donations’ or altruistic,” Song explained. “We see them as investments to the technology that powers the entire crypto industry… We at OKCoin and others are finding the right incentivization to attract talented developers to open-source Bitcoin development, and keep the best ones like Marco, Amiti, Fabian and the team at BTCPay focused on Bitcoin development.”

Heiko Closhen, Entrepreneur