## What is tax?

To have a clear insight into what this article is about, you first have to understand the meaning of tax. 
Tax is a mandatory contribution imposed on individuals or corporations by a government entity, and these contributions are used to finance government activities.
The government does not regulate the crypto space in the UK, so how is a crypto investor obliged to pay taxes? This is a common question on the internet. 

Crypto is generally not considered by the government as a form of money. Cryptocurrency is, in fact, a digital currency that came to light around 2008/2009. There was little or no regard for it then, as people considered it as an avenue for internet crimes. Currently, the crypto market has been known to generate millions of pounds and is sure to create awareness. Bitcoin is the cryptocurrency that made the crypto space as famous as it is now. Bitcoin is the largest cryptocurrency, with a price of about $30,000.

## Do you pay tax on crypto gains in the UK?

The answer to this question is yes, but it depends on how the crypto assets are used. The regulations guiding the crypto space are still firm as cryptocurrency is not a generally accepted form of money, but that doesn’t stop a crypto investor from paying taxes in the UK. 

According to the UK tax law, you are eligible to pay tax as long as you earn up to £12,300. However, transactions done in the crypto space are mostly untraceable, so how can the government tell If your profit is up to £12,300. 

Without the crypto space being regulated, as long as you make up to the approved amount for paying tax, you are liable to pay capital gains tax, but without any close monitoring from a government body, most people flaunt this tax law. 

By law, as long as you fall into any of these categories, you are liable to pay crypto tax gains.

•	If your employer pays your salary with cryptocurrency: Though transactions done with cryptocurrency cannot be traced, as long as the company you work for is registered, you must record payments made to you. This makes it easier for the government to be aware of your cryptocurrency activity. 
•	If your business is backed by cryptocurrency: This also applies to cryptocurrency companies based in the UK. If your registered business is connected to cryptocurrency, you are liable to pay tax. 
•	If you mine crypto: crypto mining, especially Bitcoin, requires a high energy level. If you are a crypto miner, you are eligible to pay tax.
•	If you trade crypto: if you trade crypto in the UK and make good profits, you should pay tax.

Some companies or individuals backed by cryptocurrency often hide under the fact that the crypto space isn’t regulated, but the thing is, the law always finds its way around things, and they are also likely to fall out of luck in the future. 

## The question is, Do you pay tax on crypto gains UK?

It is a well-expected question considering the unregulated nature of crypto and the fact that most people see crypto investment as gambling since it is an unpredictable space. However, unlike what some individuals or corporations may assume, [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) does not classify cryptocurrency as gambling. Therefore, as long as there is profit, paying tax is required. 

## What Are the tax rates?

Tax rates depend on the type of assets and are not permanent. The rates can change each year, so to avoid defaulting in any way, monitor the rates at all times. 

•	For shares, you are required to pay a basic rate of 10%
•	Residential properties require a basic rate of 18%
•	Cryptocurrency requires a basic rate of 10%

## Conclusion 

Paying tax to the government if you make a profit is highly mandatory. So whether the crypto space is regulated or not, taxes must be paid. Though the crypto space is volatile and maybe seem like gambling, it does not exempt a crypto trader from paying taxes in the UK. 




Do you pay tax on crypto gains in the UK?

The search phrase 'what are reflections in crypto' yields 4.36 million results in 0.49 seconds on Google. That's a lot of information out there on reflection tokens.

So, what do we mean?

## Passive Income

Smart contracts in Decentralised Finance (DeFi) have been at the core of some of the fastest-growing projects, such as Ethereum, Solana, and the former Terra LUNA.
Mainstream cryptocurrencies that also serve as DeFi tokens help investors make additional income through their crypto holdings. Some of the processes used in earning passive income are through staking and liquidity provision to support automated market makers such as decentralised exchanges (DEXs).

Such a process was quite complex and added to the burden of beginner traders and investors who were alien to blockchain technology and cryptocurrency as a whole.
Several developers understood the plight of such people and introduced reflection tokens into the crypto finance space.

With reflection tokens, there is no need to learn about liquidity mining, staking, or yield farming. In trying to understand this new breed of digital currencies, we ask what are reflections in crypto and how do they work?

## What are Reflections in Crypto?

Popularly known as rewards tokens, reflection tokens are digital assets that reward their holders using a technique that taxes transactions, with a percentage of this tax being redistributed to token holders.
Holders receive tokens in their crypto wallets. Although the end result of yield farming and staking is to reward holders, reflection tokens reward holders for just having the coins in their wallets. Holders do not have to join a staking or liquidity pool before they can see additional rewards periodically. Tokens are normally distributed based on the size of holdings.

Reflection tokens have several advantages. Among them is the prevention of large price declines.
Cryptocurrency LUNA crashed because large whales decided to let go of their holdings. Per the fundamental laws of economics, the more supply of an asset, the lower the price of that asset.

Due to the mechanism that taxes transactions and redistributes coins to holders, owners of a particular reflection token will hold onto their tokens for more rewards.
Simply put, reflection tokens play an invaluable role in helping keep investors loyal to a particular crypto project.

## Examples of Crypto Reflection Tokens

For those who want to find answers to what are reflections in crypto with an eye on the tokens, [EverGrow](https://coinmarketcap.com/currencies/evergrowcoin/) Coin (EGC) and Reflect Finance (RFI) are examples of crypto reflection tokens.
Launched in September 2021, EverGrow charges a 14% tax on transactions involving its native asset, ECG. A total of 8% of this tax is redistributed to investors. Rewards are paid in the stablecoin Binance United States Dollar (BUSD) due to the project being housed in the Binance Smart Chain (BSC). As of May 2022, EverGrow Coin has paid more than $36 million in BUSD rewards.

Reflection Finance (RFI) is a reward token housed in the [Ethereum](/coins/eth) ecosystem. Reflect Finance applies a 1% fee to transactions involving RFI and automatically redistributes tokens among coin holders based on the size of funds.

Reflection tokens are here to stay and continue to add more coins to the portfolios of novice and experienced traders and investors.


What are Reflections in Crypto? 

Crypto impact has been felt by millions of people ever since Satoshi Nakamoto introduced a blockchain-backed cryptocurrency in 2009. Thanks to the impact cryptocurrencies had on investors' portfolios in 2021, digital assets have established themselves as a successful currency since they have all the essential attributes (durability, utility, non-counterfeitability, transferability, divisibility, and scarcity) that confer value on money.

The economic impact of digital assets has been seen in several areas in national and global communities. As of June 2022, there are approximately 19,000 coins, per data retrieved from CoinMarketCap. There are approximately 300 million crypto users across the globe. Of these, 27 million are residents of the United States, according to Triple A (a member of the Singapore Fintech Association). What’s more, 1.5 million are residents of the United Kingdom, 1.2 million hail from Canada, 900,000 are in Australia, and more than 2 million are in Japan.

Although cryptocurrency started slow and could not impact a large sector of the global economy like the stock market in its first 10 years of existence, it saw hundreds of billions of dollars traded in the following years.

From the second half of 2020 to June 2022, cryptocurrencies have become the go-to asset for several investors who want to make gains in the short, medium, and long term.

The most popular and largest cryptocurrency by market capitalisation, [Bitcoin (BTC)](/coins/btc), is considered digital gold by many market commentators because it can retain its value over time without depreciating.
It has simplified several areas of payments and continues to break barriers in an area largely dominated by centralized finances in the last 50 years.

Here are some of crypto’s impacts on the global economy.

## Crypto Impact on Global Economy Through Blockchain 

Blockchain technology is the underlying infrastructure behind cryptocurrency. Blockchain technology has gradually moved into the mainstream and has been adopted by several Fortune 500 companies.

Many market experts believe blockchain technology has the potential to unlock billions of dollars. Companies actively developing blockchain solutions include but are not limited to the Bank of China, Samsung, PayPal, Alibaba, Walmart, J.P. Morgan, Nvidia, Tencent, Amazon, and Microsoft.

Overall, blockchain has impacted several financial institutions' cross-border transactions. Countries such as Ethiopia, in partnership with Cardano, are using blockchain to reduce paperwork by building a national identification (ID) blockchain system.

Cloud computing companies are using blockchain for the execution of smart contracts as well as resistance against hacking.

Text messaging applications have employed the possibilities of this technology due to its secure nature.
Overall, International Business Machine Corporation (IBM) believes blockchain technology has increased automation, speed, and efficiency. It provides instant traceability, greater transparency, and enhances security.

## Crypto Impact on the Job Markets 

The rise of Bitcoin and cryptocurrency has created new job opportunities. In hiring more support workers, the crypto industry offers careers in marketing, management, IT operations and helpdesk, human resources, finance, accounting, sales, information design and documentation, industrial engineering, and software development.

Every year, thousands of jobs are posted with "remote work" first options available to prospects. Most importantly, companies under the blockchain technology and crypto umbrella pay above-market compensation to their employees.

As crypto continues to make the underbanked and unbanked a part of the global economic system and gains the support of millions of people in the mainstream, more liquidity will be poured into this sector.
Once this happens, new job opportunities will be created, giving residents in unemployed economies a chance to earn a decent income periodically.

## Crypto Impact on Unstable Domestic Currencies 

Although fiat currencies are known as representative money, they have gained the confidence of billions of people over time.

Due to the success of the Great Britain Pound (GBP), Euro (EUR), and the United States Dollar (USD), they have become the go-to currencies for trade.

This has brought about terms such as exchange rates, currency appreciation, and currency depreciation.
While countries in Africa, Asia, and the Middle East convert huge sums of money for less USD, EUR, and GBP, developed economies can go about foreign trade in their domestic currencies. Cryptocurrencies have leveled the playing field and makes it possible for all countries to trade under one accepted currency that is not controlled by a single country.

This is why countries such as El Salvador of Central America and the Central African Republic (CAR) have adopted Bitcoin as their official currency. With time, the impact of cryptocurrency on economies is going to be significant.

## Crypto Impact on Low Transaction Costs 

When money is sent from one location to the other, it must go through several channels before reaching the receiver. This normally comes with hidden fees unknown to the public. With cryptocurrencies, you can send and receive money via the internet and pay little in transaction fees.

Moreover, cryptocurrencies such as Ripple (XRP) and Stellar (XLM) play a substantial role in cross-border payments.
They are used as on-demand liquidity (ODL), which facilitates transactions within seconds to anywhere on the globe.

This is why mainstream financial services companies such as Flutterwave, MoneyGram, and Azimo employ these cryptocurrencies to become the best cross-border payment solution networks.
Crypto’s impact on the transparency of payment costs has made it easy for independent contractors (freelancers) and migrants to receive and send money to remote areas without losing more than 10% of the sent funds to fees.

Overall, the impact of cryptocurrency on the global world cannot be fully measured. It has become easy for all manner of persons to conduct legitimate business without facing any form of restrictions. Entrepreneurs can go into business and pay clients within minutes. Despite cutoffs due to crypto winter, people continue to find jobs. Trading crypto continues to impact millions of people positively since it brings them consist


Crypto Impact on the Financial Markets

[Telegram](https://telegram.org/) a playground for crypto scams: How to avoid cryptocurrency scammers and identify telegram crypto scams. 

Cryptocurrency Scammers are relentlessly looking for ways to scam crypto investors. They have practically scammed people through almost all the available social media platforms, and telegram is one of these platforms. Telegram crypto scams have gradually become almost an everyday thing. Most cryptocurrency companies use telegrams to create awareness for their tokens, making it one of the most used platforms for crypto investors.  

## Telegram crypto scams can be avoided

To [prevent Telegram crypto scams](/news/article/bitcoin-scams), you to needs to first know how to identify them. Most of the scams are done by bots programmed to coax crypto investors into giving their two-factor authentication, leaving their accounts entirely vulnerable to Scammers. Unfortunately, these bots are often disguised as support channels, making it easier to deceive some crypto investors, especially those new to the crypto space.  

The bot scam has become rampant on telegram, to the extent that anyone can actually access these bots even without being a coder, by simply buying the bots. Not all cryptocurrency companies are real or genuine; some of them are merely schemes to rip unsuspecting victims off. Joining a huge crypto community makes it possible for a lot of strangers to gain access to your profile or send you messages, do not trust every information you hear.  

## How can Telegram crypto scams be prevented? 

Here are some important tips to help you be out of reach for Telegram crypto scams.  

Do your research: Do not join just any crypto community to see on telegram; always DYOR. Some crypto communities are created for scam purposes. With the internet, you can get any information you need easily. Make it a habit to first research anything that has to do with cryptocurrency before taking part in the process. 

Do not give out vital information: No genuine crypto community will ask for your personal wallet or account information as a criterion for gaining access to its tokens. Your authentication codes or OTPs are for you alone. Giving out such information always ends badly. 

Be mindful of the links you click: Scammers can use different methods to gain access to your vital information. Do not click just any link, do intense research first to find out more about the company sharing the link. 

Anything can happen in the crypto space, so it is advisable to always  stay be alert when in the space. Many assets have been lost to telegram crypto and other platform scams; always be on the lookout for crypto scammers. Losing investments, whether huge or small, can be devastating. Secure your investment by ensuring that you avoid falling victim to all these. How do you do that?  

- ##### Do your own research.  

- ##### Keep your personal account information to yourself.  

- ##### Be sure of the links you click.  

Telegram has become a playground for crypto scammers; stick to the above tips for your assets to remain protected.  

 

How to Avoid Telegram Crypto Scams

[Non-fungible tokens](/news/category/nft-news) have swept the globe, but they’re not quite as complicated as they appear.

In this article, we will explain how you can create an NFT (Non-Fungible Tokens) on Blockchain-based marketplaces in simple terms and in very few minutes.

## What Is NFT?

The word ‘NFT’ means ‘Non-fungible Token,’ meaning that they are digital assets that can’t be replaced.
NFTs are digital assets that use Blockchain technology to hold the virtual assets of their creators online.
Even a tweet can be regarded as an NFT, whether it is a song, blog post, digital artwork, playing cards, or a collectible.
You’re probably mistaken if you think that making NFTs is only for artists. On the contrary, anyone can make NFTs for free, which is exactly what I’ll demonstrate in this article.

However, do not confuse NFTs with cryptocurrency. They aren’t the same thing at all.
NFT and Crypto are, in fact, components of Web 3.0. However, there are a few ways in which NFTs and Crypto are related.

The following subtopic walks you through the steps of creating your first free crypto wallet using [MetaMask](https://metamask.io/).

## Things to note before creating an NFT

How to make and sell NFT’ is a hot topic that doesn’t seem to be going away anytime soon. It’s quite simple, but you must consider all factors before embarking on your own path. Consider consulting with a professional who can explain how to create NFT art so that you can make an informed choices.

Before proceeding, here’s a list of what you will need to begin creating, minting, and selling your own NFT: 

•	A Crypto Wallet
•	An NFT Marketplace Account
•	A Software to create or generate NFTs

## How to Create a Free NFT Crypto Wallet?

There are plenty of wallet providers to choose from, but we’ll concentrate on MetaMask, the most extensively used crypto wallet.

1.	To get started, go to MetaMask’s official Chrome Web Store page (visit) and click the “Add to Chrome” located on the button in the top right corner. If your browser prompts you for confirmation, select “Add Extension.” Make sure you’re using one of the chromium-based browsers, such as Google Chrome.
2.	When you install the Extension, it will launch a new webpage to get you started. On this new screen, click the “Get Started” button.
3.	Once you’ve done that, MetaMask will then prompt you to log in or register for its wallet. Choose the right-hand option and click the “Create a Wallet” button.
4.	Your secret recovery phrase will now be shown in the app. If you don’t want to lose access to your wallet, don’t share it. Also, remember it or download it for safekeeping using the provided option. Then press the Next button. Before your wallet is complete, MetaMask will require you to enter the security phrase.
5.	After you’ve created your password, you’ll need to come up with a recovery phrase. It’s a 12-word phrase that serves as your wallet’s username. Before you click the “next” button, MetaMask will explain everything in detail.
6.	Your secret recovery phrase is now shown in the app. If you don’t want to risk losing your wallet, don’t share it with anyone. Also, make a note of it or save it to your computer using the option provided. Then select Next. Before your wallet is ready, MetaMask will ask you to type in the security phrase.
7.	Finally, MetaMask will lead you to the wallet dashboard, where you may access all of the cryptocurrency’s details. Finally, our wallet is now ready to produce its first NFT.

## What is Minting an NFT?

In the case of NFTs, minting is the process of taking a digital asset and transforming it into a blockchain-based digital asset, making it a commodity that can be purchased and sold.

To put it another way, a digital asset is any file that is created electronically. This can be an image, an article, a video, or anything else. Minting is the process of converting a digital asset into an NFT by adding it to a blockchain, usually Ethereum. The Blockchain is a decentralised digital ledger that cannot be amended, edited, or destroyed once an item has been added to it. The asset can be sold on an NFT marketplace once it has been minted and certified as an NFT.


## How to Create an NFT for Free: Step by Step Process

1.	Create a Crypto wallet account: You will need a crypto wallet, as we’ve mentioned at the beginning of this article. To create your wallet account, follow the steps above.
2.	Create an account on an NFT marketplace: There are several NFT Marketplaces, such as
•	Crypto
•	Rarible 
•	OpenSea
•	Binance
•	WazirX. 

You’ve probably heard of OpenSea. If you haven’t heard, OpenSea is the world’s largest NFT marketplace as of 2022. On OpenSea, you may use [Ethereum](/coins/eth) to purchase and trade collectibles, NFTs, trading cards, domain names, pictures, and other fun goods. 
Step 1. To get started, create an account. Then, click “Create” in the upper right corner of OpenSea.

Step 2: You’ll then be directed to a page where you’ll be prompted to link your OpenSea account to an Ethereum wallet.

Step 3: Metamask is definitely one of the most popular choices. When you click it, you’ll be directed to the Metamask website to download the Chrome Extension.

Step 4: After you’ve downloaded the Extension, it’ll prompt you for permission to link your Metamask wallet to your OpenSea account.

Step 5: You’re done! You’ll be redirected to an OpenSea website where you can upload and mint your NFT

Congratulations! Your OpenSea account has been successfully created.

Remember to personalize your NFT marketplace account by uploading a banner image and connecting your social network accounts. The more time you spend making sure your social media accounts are connected, the more visible your art will be; the more time you spend adding detail to your profile, the more visible your art will be.

3.	Make some Art: An NFT can be any digital file, so make whatever art you want, if I were to choose, for example, I’d go with a digital painting. Then I’d save the new artwork as a jpg before uploading it to my new NFT marketplace account and minting it as an NFT.

Here are five platforms for creating, designing, or generating beautiful NFTs:

1.	Fotor: This software employs artificial intelligence to assist non-artistic individuals in creating NFTs. Fotor is a no-code platform that allows you to easily make NFTs by uploading your photo and selecting an art style.

2.	NightCafé: This platform allows you to generate several NFTs in bulk. It creates NFT artworks with Artificial Intelligence-based technologies. NinjaFT is an NFT creation program that works on both Android and iOS smartphones. This app allows you to trade directly on the Binance Blockchain. This program allows you to mint, buy, and design NFTs.

3.	NFT Art Generator: This online NFT maker allows you to make NFTs in gif, png, and mp4 formats. Thanks to the software’s simplicity and intuitiveness, the learning curve isn’t too steep. SketchAr is a program that turns digital art into NFT. It chooses the top artists weekly and turns their work into NFT for free.
Each platform has its own user interface and learning curve. If you’re serious about your NFT adventure, getting to know each of these won’t be a problem.

## How to Sell an NFT

Finally, let’s talk about how to actually sell your NFTs on marketplaces like OpenSea now that we’ve covered the subject of creating NFTs.

Interestingly, selling is not as difficult as it appears. Because OpenSea is one of the most often used NFT markets, I’ll walk you through the complete process of selling NFTs on OpenSea.

•	While linking Metamask to OpenSea, sign in using OpenSea and click “Create,” as seen above.

•	You’ll then be led to a website where you may upload your NFT artwork, fill out any required information, and mint your NFT.

•	You’ll need to upload your NFT artwork and give it a name, as shown in the snip above.

•	The external link will be the OpenSea URL for your NFT. The purpose of your NFT description should be to explain why people should buy your NFT.

•	The “Collection” part follows, where you can include or add your NFT to a certain collection name or category.

•	This next step is to choose a Blockchain for your NFT. I’d recommend “Polygon,” a gas-free alternative to Etherium. Simply put, gas fees are the costs incurred by a creator when completing an NFT transaction. In this situation, NFT makers must pay a price to enter their NFTs onto the Blockchain.

Gas costs can be expensive and depressing for artists. However, if you use Polygon as an option, you won’t have to pay a single penny to mint your NFT.

There are a few things to consider if you want to learn how to make an NFT because everyone else seems to be doing it. For example, the cost is a big consideration. In addition, while you can produce NFTs for free on most platforms, selling them may be a different issue. Putting all these together, your NFT is ready to go to the market.



How to Create an NFT for Free

Undoubtedly, the cryptocurrency market will continue to grow in the near future. It's here to stay, and it's completely transforming the way people invest. However, people are still skeptical of this type of trading because there are platforms that prey on people's gullibility and steal money from a huge number of people. In this article, we'll look at [Crypto Engine](https://crypto-engine.org/), a cryptocurrency trading platform that's been gaining traction among cryptocurrency investors.
 
The platform is reported to feature a high-profit margin that may be achieved in a short period of time, a simple account opening process, and a user-friendly interface. The Crypto Engine robot's official website made claims that consumers can make millions of dollars by using its services to trade [Bitcoin](/coins/btc). External evidence also says that the automobile bot's services brought in $1500 each day, although these assertions are difficult to believe. Are these claims true? Is Crypto Engine a Scam or a legit Trading Platform? Continue reading to find out what we think.
 
## What is Crypto Engine?

Crypto Engine is a beginner-friendly cryptocurrency trading platform. The developers of this software recognise that thousands of crypto enthusiasts are unable to make their first trades because they are unsure about the market's direction. In addition, Crypto fans are frequently unaware of the trading tools accessible to them and want guidance on how to use them.
 
As a result, Crypto Engine was created to fill the void by providing a user-friendly interface that simplifies cryptocurrency trading. You can trade a variety of coins with this software. Furthermore, the software's simplicity made it perfect for novice and experienced users to locate crucial information quickly.

## Crypto Engine Pros & Cons
 
### Pros
 
•	Uses AI to make a market forecast with a 90% success rate
•	Offers multiple crypto assets
•	User-friendly
•	Rapid withdrawal timeline
•	Suitable for both new and advanced traders
•	Enables hands-off trading approach
•	Comes with mobile support
•	Liaises with brokers to enable users to place trades

### Cons
 
•	There's limited information on the development team
•	The success rate is largely unverified
•	Lack of operational licenses
 
 
## Is Crypto Engine Legit?

Crypto Engine employs sophisticated algorithms and technological approaches to forecast future price fluctuations in crypto-assets, but it is deceptive about the software's usefulness. Its automated trading services can execute trades fast and without the need for human participation. However, earnings of $1500 per day are very impossible to achieve, and this figure is merely utilised to entice customers to the platform.
 
Furthermore, the movie on the front page creates the idea that it has ties to major investors. However, none of these people are connected to Crypto Engine in any way. Instead, they are using unscrupulous marketing strategies to sell their product. The website claims to have over 6000 registered members, but our research team could not confirm this.
 
Beginners should be wary of promises that the robot will make them millions in cryptocurrency trading. Even professionals should exercise caution when using its services because Bitcoin markets can be turbulent and unpredictable.


Crypto Engine- Is it a Scam or Legit?

The evolution of the cryptocurrency world cannot be discussed without [“ENJIN”](/coins/enj) coin popping up. The purpose of ENJIN coin, and its advanced features, certainly make it worth talking about. 

ENJIN coin (ENJ) is an ERC-20 token traded on the [Ethereum blockchain](https://coinmarketcap.com/currencies/ethereum/) launched by the company [Enjin](https://enjin.io/). At first, ENJIN was founded as a network, a community gaming platform, in 2009 by Maxim Blagov and Witek Radomski. 

In 2017, ENJIN coin was launched to try and make NFT usage easy for individuals and enterprises. As we all know, there’s a massive buzz around NFTs in the crypto space right now, with many investors seeming to become millionaires overnight. 

On November 25, 2021, ENJIN coin reached an all-time high of $4.85. That was during a favourable period for the crypto markets. Today, the ENJIN coin price stands at about $0.90. 

Despite the comparatively low current position, there are indications that the longer-term fortunes of ENJIN may be better. 
 
## What is ENJIN About 

You probably know a little of what this coin is about, but let’s add to that knowledge. 

ENJIN is designed to integrate with games. Some gaming platforms are exposed to risks, such as manipulation, scammers, and hackers. Virtual items have been reported stolen. In addition, users sometimes complain about transaction fees and speeds, as well as ‘centralization’ locking assets into a single game. 

These all impact the reputation of the game and platform. 

ENJIN was designed to help combat some of these issues and create a safer space for gamers. 
Items bought by players with ENJIN can be used in multiple games and can be traded and sold in an online marketplace with ease. In addition, ENJINwallet can be used to buy, sell, and trade NFTs, while ENJIN coins can be used as a currency. 
With the ENJIN platform, gamers and content creators can manage and trade their NFTs successfully and easily. 


ENJIN tokens run on a proof of work (POW) consensus algorithm, meaning that, like Litecoin, ENJIN tokens are created through mining. The mining process for all cryptocurrencies running on POW is the same. Miners verify their transactions by completing cryptographic equations and then move to the next transaction. For effective ENJ mining, the best way to go about it is by using the ASIC mining setup. 
 

## How To Buy ENJIN 

The first step to buying an ENJIN coin is to have an Ethereum wallet compatible with ER-20 tokens. ENJIN coin is available on a range of exchanges. 
The amount of coins you buy entirely depends on you. As I always mention, cryptocurrency is a high-risk investment; investing depends on the amount of risk you are willing to take. 


## Conclusion 
While the ENJIN coin value has fallen from its November ’21 high, there is potential for this cryptocurrency. Features aimed at making gaming safer and easier are likely to continue finding favour with gamers. In addition, its use in the NFT space aligns it with a rapidly expanding industry. Both could contribute to a brighter future for ENJIN coin. 


You can read more guest articles at [brendanbeeken.com](https://brendanbeeken.com/). 

What Is ENJIN Coin?

In the United Kingdom, [regulation](https://brendanbeeken.com/crypto-regulation-in-2022/) for a UK crypto exchange can be seen as somewhat of a grey area compared to the European Union (EU) and the rest of the world.

Before diving into the state of play in the global regulatory realm, we look at why regulation is significant to a UK crypto exchange. Anti-regulation crypto enthusiasts often oppose any notion of regulation being introduced, believing it will hinder innovation and goes against the decentralised nature of cryptocurrency, specifically not being tied to any institution or government authority.

In the eyes of policymakers and many crypto business owners alike, these are the factors in which crypto may have implications on global financial stability:

## Size, scale, and volatility of the burgeoning crypto market 

The collective crypto market cap has reached highs of an estimated $2 trillion with high volatility. At the time of writing, the cryptocurrency market has shed $1 trillion in the last month! The crypto market is forecast to continue growing at a rapid rate sporadically.

## Disruptive innovation effects of the industry

The distinctive nature of cryptos underlying blockchain technology conflicts with existing regulation for traditional methods of cross-border data flow, intellectual property rights, and capital controls. This introduces ambiguity as to how digital assets are treated for taxation purposes and various other policy concerns.

## Correlation to existing financial markets

Earlier enthusiasts insisted that crypto can add valuable diversification benefits as a hedge to one's portfolio. So much so that the OG of crypto, Bitcoin, is still often dubbed "Digital Gold". Recent analysis suggests this is not the case, as there is a strong correlation between BTC and the S&P500 during the Covid-19 pandemic. Figure 1 below displays significant swings in volatility aligned with the trend of the US stock market. 

![Uk crypto exchange image 1.webp](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Uk_crypto_exchange_image_1_539fbfac6f.webp)

 
Figure 1 (IMF, 2022)

For these reasons, policymakers worldwide see regulatory guardrails as imperative to achieving the common objectives of stabilising their monetary systems while championing innovation and economic growth.

## Importance of regulation for a UK crypto exchange

Close to a year ago, Binance, the largest crypto exchange in the world in terms of daily trading volume, was banned by the UK regulator. This caused panic among British users who could not withdraw their fiat funds from the platform. 

Crypto is volatile enough. UK crypto exchanges do not want to be banned like Binance. UK crypto exchanges crave stability, guardrails, and direction from regulators that can inform how to run their business sustainably. Therefore the Moni Talks team and I believe regulation is positive for a UK crypto exchange.

## Regulation fosters stability in the market

For cryptocurrency to unleash its full potential, the industry will need to integrate into the mainstream financial system. This will unlock even more finance and use cases of blockchain technology among institutions and everyday retail investors alike. 

Regulation will guide cryptocurrencies from looking like a gamble to more like an investment.

## Encourages consumer protection and confidence

UK crypto exchanges do not have access to the same capital protection in the case of default as regulated stock exchanges in the legacy financial system. If, one day, investors can be assured that 80% of their funds are recoverable in the case of default, this will inspire wider adoption of cryptocurrencies. It will shift the mindset away from “only invest an amount in crypto you can afford to lose (5%-10% allocation of your portfolio)”.

## Safer Crypto Industry

Although certain cryptocurrency coins like [BTC](/coins/btc) are completely secure, immutable, and transparent, many certainly are not. There is widespread fraud, scams, rug pulls, and market manipulation, which gives the industry a bad name. Scammers took $14 billion worth of crypto last year, a record compared to the $7.8 billion taken by scammers in 2020, according to a report by blockchain data firm Chainalysis.

At Moni Talks , we are a customer-first company and support regulation to weed out bad actors in the industry.

## Current regulatory landscape

Globally, central banks and policymakers are assessing impending regulatory responses to the rise of the crypto ecosystem. The traditional financial system becomes more interconnected with the rapidly growing decentralised finance (DeFi) industry each day. Concerns about how significant the overspill effects of this could be on the systemic stability of the monetary system have been keeping policymakers busy.

Countries from China to El Salvador have started evaluating and implementing different regulatory options. Most countries are broadly aligned in their objectives: to protect consumers, prevent illicit financing, protect the integrity of the market, and promote innovation. 

Some jurisdictions, such as India, have proposed amending existing legislation. The EU and United Arab Emirates (UAE) propose setting up completely new regulators to deal with the industry comprehensively. The UK has adapted. The UK has transposed some of the related frameworks related to [cryptocurrency regulation](https://complyadvantage.com/insights/crypto-regulations/cryptocurrency-regulations-uk-united-kingdom/) in the EU into its domestic law. Many jurisdictions' regulation is in limbo while still being developed before having the ability to be enforced. In Great Britain, all UK crypto exchanges are to be registered with the FCA.

Differing regulation presents arbitrage opportunities, lack of common standards and lingo. The Digital Currency Governance Consortium, composed of more than 80 organisations representing 33 countries, is tasked with facilitating a coordinated approach to regulation across the globe.

Key takeaways of UK crypto exchange regulation:
•	UK crypto exchanges are legal and have registration requirements with the Financial Control Authority (FCA)
•	The sale of crypto derivatives and Exchange Traded Notes (ETNs) are banned
•	Cryptocurrency is currently not considered legal tender
•	The HM Treasury plans to regulate some cryptocurrencies as part of a wider plan to make the UK a digital payment hub.

## Turbulent regulatory timeline for a UK crypto exchange

The UK has transposed some of the related frameworks related to cryptocurrency regulation in the EU into its domestic law. 

On 10 January 2020, the FCA announced that firms offering cryptocurrency services based in the UK are to be registered within one year. 

Importantly, to be classified as a registered UK crypto exchange, a company must comply with Anti Money Laundering (AML) and Countering the Financing of Terrorism (CFT) reporting and customer protection obligations. This ignited a scramble of application submissions inundating the FCA processing resource.

On 6 October 2020, it was announced that the sale of cryptocurrency derivatives to retail consumers was banned by the FCA. This came into effect three months later in order to protect everyday investors from market volatility. 

In December 2020, a ‘temporary registration regime’ was introduced due to the prolonged processing times of all registration from crypto businesses applying to adhere to the licensing requirements. On this register, a UK crypto exchange will be able to continue trading while awaiting determination of it’s application for registration with the FCA. 

More than 80% of applications to the FCA have withdrawn or been rejected on the back of not meeting standards money laundering standards. Crypto has often been referred to as the Wild West and licensing requirements are clearly the new Sherrif in town. 

Gemini’s head of UK, Blair Halliday, said, “The licensing regime is important as it provides customers the assurance that they’re dealing with a firm that has undergone rigorous scrutiny." 

From 10 January 2022 onwards, UK crypto exchange firms, as well as recognised financial advisers and investment managers that market and provide services in the UK market, have to be registered by the FCA. As of 30 March 2022, 33 firms have been registered with the FCA, and only 12 firms remain on the temporary registration regime with notable names such as Revolut and Copper. 


Regulatory Impact on a UK Crypto Exchange

For people new to the community, the number one question is ‘how to trade cryptocurrency’.

This isn’t a surprise, especially as the volatile nature of cryptocurrency – the rapid increases and decreases in price – creates a lot of opportunity for the trader. However, we must remember that while volatility can create opportunity for profit, it also creates the risk of loss.

The long-term potential of cryptocurrency is hard to assess, given it remains a relatively new phenomenon in finance. Early adopters have seen massive returns and while it is becoming more widely used, the opportunity for significant profit still remains.

The fact it is new, and broadly based around an ethos of [decentralisation](https://www.worldbank.org/en/topic/communitydrivendevelopment/brief/Decentralization), means governments around the world question its legitimacy. That creates risk, as well as the possible potential opportunities could be curtailed in future by regulation.

## Measuring Volatility

To explain how you measure volatility, we will use [Bitcoin (BTC)](/coins/btc) as an example. Basically, look at how the average price from the start of the day has varied and apply a calculation. For instance, take 10 measurements from the day to give you a sum of price variation, square that and then divide by 10 (the original number of measurements). The volatility measure of that day is the square root of your result.

To extrapolate over a fixed period, you multiply that result by the square root of the number of days (ie, for a year, multiply your volatility measure by the square root of 365).

## Trading vs Investing

Your challenge is to manage the risks posed by trading in cryptocurrency and make money – by which we mean selling a cryptocurrency asset for more than you paid for it.

Start with two basic questions: will the asset price go up or down in the next day, and will it go up or down over the next four years?

These questions require you predict the price movements, which are, of course, uncertain, but there is a big difference in time frame, which should make you think about the investment, and risk, differently.

What makes a difference in the next 24 hours will not necessarily be the same as what influences the longer-term price trend. You cannot really make a long-term prediction based on one day’s results.

Buying and selling over short periods is trading. Buying an asset and "holding" it for a longer period before selling for profit is called investing, or hodling.

To make money from cryptocurrency, you need to understand the strategy for each. You don’t have to fit into one category or the other – you can both trade and invest, as long as you understand how the decision making differs between the two.

## Analysis

Analysing short-term asset price movement and volume of trading is known as Technical Analysis. When you take a broader look at potential influences, especially on the longer-term value, it is known as Fundamental Analysis.

They can overlap but are a good framework to separate trading from investing, although both ultimately come down to measuring risk.

## Stay Grounded

You should aim to sell your cryptocurrency asset for more than you bought it for, whether you are trading or hodling. This is where a structured approach and skill-based decision can help manage risk.

If you are trading best on instinct or a random social media post, your fortunes rest with luck. The best traders have a strategy based on analysis and have spent a long time learning. You need clear objectives founded on knowledge and mathematical discipline.

You can learn by doing, so keep a record of your trades and how they went. This is the experience which can help make you a better trader or investor. Start with a realistic goal, be honest with yourself and learn from your mistakes and your victories.

Also be honest that sometimes, despite all your learning and preparation, an outcome can be down to luck. One good result you were not expecting doesn’t mean you have suddenly become a great trader. It’s important to recognise that.

cryptocurrency charts and man trading crypto

A Guide to Cryptocurrency Trading

Do you choose [Bitcoin](/coins/btc) or [Ethereum](/coins/eth)? Yes, there are thousands of coins and tokens, but these remain the big names.

Disclaimer – This article is not investment advice and should not be taken as recommending a strategy. It is for information only. Before investing your money, ensure you conduct your own extensive research.

Cryptocurrencies are the assets increasing numbers of people are looking to as they seek to diversify their portfolios.

Volatility, and therefore a higher chance of earning huge profits, is one reason.

It has been a bumpy ride for crypto. After taking centre stage in 2016-17, its prominence faded due to acceptance levels and [regulation](/news/tag/regulation) concerns.

More recently, interest has soared with record-breaking values and a market cap in excess of $2 trillion.

The potential profits have driven interest, but other benefits of cryptocurrencies have helped. These include:

- Decentralised Nature
- Fast Transactions
- Secure Transactions
- Transparent System

The upwards trend has led to many investors considering digital assets and beginning to learn about them. Some then face a dilemma; where do they invest?

Due to their market prominence, the main choices are Bitcoin or Ethereum. But which one?

## Bitcoin

Bitcoin (BTC) is often regarded as the first cryptocurrency, coded by anonymous Satoshi Nakamoto. As the first and best know, bitcoin has become synonymous with cryptocurrency. Its name recognition has contributed to stellar values.

At the time of writing, BTC is trading for $20,194 and is responsible for around 40% of the cryptocurrency market. At its peak, it traded at $68,789.63.

Bitcoin’s efficiency is, comparatively, lower than many other well-known cryptocurrencies. The transaction speeds are relatively low, and power consumption is high.

This is because Bitcoin works on the Proof of Work (POW) principle rather than Proof of Stake (POS).

However, BTC fulfils its purpose of being a decentralised currency that can be traded globally with ease and convenience.

## Ethereum

Second on the list of cryptocurrencies [by market cap is Ethereum](https://coinmarketcap.com/currencies/ethereum/). At the time of writing, its price is $1496.70.

Ethereum has a market cap of $365 billion, considerably less than Bitcoin’s $817 billion. This represents around 18% of the cryptocurrency market. Its value has increased from $1,300 to the current price in just a year.

Ethereum is a popular blockchain used for drafting smart contracts to assist in almost any form of transaction. The transactional token that facilitates operations on the Ethereum network is ether.

Like Bitcoin, it works on the less efficient Proof of Work (POW) principle, yet is more efficient and has higher utility when compared to that of the Bitcoin blockchain.

To improve its efficiency, Ethereum plans to launch an update named Ethereum 2.0, which will work on the Proof of Stake (POS) principle. The aim is to make the overall blockchain more efficient.

Due to the Ethereum blockchain’s ability to code smart contracts, its utility value, compared with Bitcoin, is a lot more. Due to this property, it’s easy to develop a Decentralised Application (dApp) on the Ethereum blockchain. In addition, smart contracts are easier to code, which is helpful in developing decentralised finance contracts and assists in NFTs transactions.

The Ethereum blockchain is so versatile that it even helps form new cryptocurrency tokens, altcoins coded on the Ethereum blockchain. They can stand out individually, separate from ether, and have individual use cases like any other cryptocurrency.

## The Future

If we compare ETH and BTC prices for the last year, ETH seems to be the more logical investment as it had a better high to low ratio than BTC.

As the move towards decentralisation continues, the applications of the Ethereum blockchain will increase, making it tough competition for Bitcoin, even when their values are so far apart.

## Disclaimer

This article is not investment advice and should not be taken as a recommended strategy. It is for information only. Before investing your money, ensure you conduct your own extensive research.

You can read more guest articles at [brendanbeeken.com](https://brendanbeeken.com/).


Guide to Ethereum vs Bitcoin


People are afraid to invest in cryptocurrencies because they don't understand it, and they're worried about what could happen if the bubble bursts.

This article explains brain FUD tactics, how to recognise them and how to avoid them.

## What Is FUD and Why Should You Care About It

[Crypto FUD](https://cryptochronicle.io/the-danger-of-fear-uncertainty-and-doubt-fud-in-the-crypto-market/) is a term that refers to the fear, uncertainty, and doubt that is commonly expressed in discussions about cryptocurrency. As crypto becomes more influential and disruptive, an increasing amount of brain FUD circulates online and in the media.

This can have negative consequences for those new to crypto, as it can be challenging to separate fact from fiction when you're just getting started with this exciting [new technology](/news/tag/technology).

At its core, brain FUD is rooted in ignorance and misinformation about crypto. The goal of this brain FUD is often to paint crypto in a negative light or to discourage people from investing in digital currencies.

However, all crypto enthusiasts need to recognize and resist this type of negative rhetoric to foster greater understanding and adoption of these emerging technologies.

By educating ourselves about crypto FUD, we can help ensure this exciting field's long-term growth and success.

## How to Spot FUD and Protect Your Investments

When investing, it is essential to be able to spot FUD – or fear, uncertainty, and doubt.

FUD is the primary tool that malicious actors use to manipulate the market and generate profits for themselves at the expense of others.

By understanding how brain FUD works and how to recognise it, you can protect yourself from being manipulated and ensure the stability of your investments.

One of the key features of brain FUD is that it often uses emotionally charged language and persuasive arguments to try and scare investors into making rash decisions.

This may include spreading misinformation about competitors or exaggerating potential negative outcomes to create panic among investors.

Additionally, brain FUD tactics may involve targeting a particular group or demographic, such as those who are new to investing or hold a particular opinion on a controversial topic.

It is important to remain calm, rational, and objective when weighing your options to protect yourself from brain FUD and other manipulative investment strategies. 

Be sure to pay close attention not only to factual information about your investments, but also to the tone and underlying motivations of messages related to them.

If something seems off or suspicious, do your own research to determine whether you should trust the source.

## Final Thoughts on the Current State of Cryptocurrency

Cryptocurrency has come a long way since its inception, but there is still much work to be done. The space is plagued by brain FUD, making it difficult for new investors to get involved.

However, the current state of cryptocurrency provides many opportunities for those willing to take the risk. 

There are many different projects underway that have the potential to revolutionise the space and seeing them develop will be exciting.


Guide to Brain FUD Tactics in Cryptocurrency

Investment in non-fungible tokens, or [NFTs](news/tag/digital%20art), continues to increase. With that comes a growth in collections to buy and more options for which NFT marketplace to use.

Where do you start if you are new to these ‘trendy’ digital assets, which encompass everything from outstanding art to celebrity and sports franchise tie-ups?

## The NFT Marketplace

NFTs have been a runaway hit with investors. They have attracted buyers who understand the value of blockchain-linked assets and those purely interested in the subject, from [cartoon apes](/news/article/lazy-monkey-nft) to [legendary NBA players](/news/article/stephen-curry-nft).

The decline of the cryptocurrency market in 2022 helped boost the NFT marketplace. Uncertainty about crypto tokens, underlined by the most recent cash, saw investors turn to alternatives like NFTs.

## Choosing an NFT Marketplace

Dedicated NFT marketplaces are the preferred option for most investors. While some offer multiple collections and artworks, others focus on a single subject or artist.

If your interest in NFTs is subject-led, your NFT marketplace options may be limited. If, however, your taste is broad or your interest is in potential value rather than subject, there is more choice in where to buy and sell.

As you look through the NFT marketplaces out there, you’ll notice they have differing functionality, appearance, personality, and interface.

Like any shop or physical market, different ones appeal to different people.

When it comes to making your choice, assuming you are not set on acquiring work from a specific collection or artist, it is important to select one you like.

Just like choosing a cryptocurrency exchange, ensure it suits you and how you want to interact.

Ensure it is safe and secure, just like you would with a crypto exchange.

The best advice is to take your time and do your research. Read independent reviews, check out what other users are saying online, and ensure you are entirely comfortable before engaging.

To help you begin your research and selection, here’s a brief look at some of the most popular NFT marketplace options.

## Popular NFT Martketplaces

### [OpenSea](https://opensea.io/)

This is one of the most popular NFT marketplaces and styles itself as ‘the largest NFT marketplace’.

Its popularity has been helped by the provision of a wide variety of features, especially those making it easier for novice buyers to get involved.

OpenSea includes a step-by-step guide to creating NFTs and handles the whole minting and sale process.

While it is a user-friendly platform for NFT creators and investors, new and old, some caution must be exercised.

Twice in 2022, OpenSea has been targeted by phishing hacks. While this is not hugely unusual in the cryptocurrency space, it is worth being aware of.

### SuperRare

Position as an art gallery in the NFT ecosystem, SuperRare is considered a venue for high-end NFT art. That is due to its selective approach on which NFTs to list – you won’t find simplistic ‘meme’-style art here.

The time taken to consider what to list gives buyers a feeling of confidence in the potential value of their acquisitions.

If you are looking for quality art, SuperRare might be the right choice, although do check the charges before you commit.

### [Nifty Gateway](https://www.niftygateway.com/)

Nifty Gateway is similar to SuperRare in some respects. It is renowned for exclusive and expensive sales, such as the $91.8 million sale of The Merge, by digital artist Pak.

Here you will find an [emphasis on ‘art’,](/news/article/nft-art-marketplaces) with plenty of work from leading artists and related to celebrities. Demand is boosted by time-limited sales through its ‘open editions’ system.

It achieved greater prominence in 2019 when the Winklevoss twins’ business Gemini bought it.

What attracts some investors is that Nifty Gateway allows credit card purchases.

### Rarible

This NFT marketplace has a more diverse selection, spanning not only high-end art, but also collectibles, video game assets, and more.

Its popularity is encouraged by the fact that credit cards are allowed, you can deal in cryptocurrencies Ethereum, Flow, and Tezos, and there is a flat transaction fee (plus any related gas fees).

A point of difference is that Rarible is that not all management decisions are made internally. Holders of its native token, RARI, can vote on company policy.

Another boost to investor confidence came in 2021, when Rarible partnered with Adobe. The aim was to make verifying and protecting digital content metadata, including for NFTs, easier.

Rarible offers investors a more extensive selection of NFTs than many, gives users access to a wide network of connections, and still retains a decentralised mindset.

### Binance

Binance is already one of the biggest cryptocurrency exchanges and entered the NFT world in 2021 when it launched its own marketplace.

You will find collections similar to most other general marketplaces, such as art, collectibles, and gaming items. An attraction for many is low fees and a user-friendly platform.

The layout and interface are similar to the Binance exchange. This makes dealing in NFTs relatively simple, especially if you are already familiar with Binance.

A further advantage is that Binance has its own blockchain.

Binance’s reputation and size give some confidence to those who are new to NFT investment.

### NBA Top Shot

While this NFT marketplace is focused solely on basketball, its popularity means it warrants inclusion.

While this one is primarily aimed at fans of NBA basketball, general investors have taken an interest because of the sums involved.

The collections are NFTs of great moments in NBA history, including video clips, artworks, and play highlights. They are not cheap – a clip of a LeBron James slam dunk sold for $208,000 last year.

For those who are not major basketball fans, a real attraction of this marketplace is that the NBA itself runs it. That means you know you are dealing with a large and reputable organisation.

Another plus for investors is that NBA Topshot allows the use of popular cryptocurrencies, including Ethereum and Bitcoin, as well as credit and debit cards. As always, ensure you check the fees before committing.

### NFT Investing

I have listed some popular NFT marketplaces available. There are many more and you should conduct your own thorough research before choosing which to use, should you decide to become an NFT investor.

Before you do invest your own money, remember that digital asset values remain highly unpredictable. The headlines suggest NFTs are sound investments and talk about huge returns.

They are, however, still relatively new assets and the future is hard to know. Like cryptocurrency, NFT values are subject to volatility, and it remains to be seen whether the sky-high prices we see now can be maintained.

If you choose to invest, select your marketplace carefully, do your own research, and don’t spend more than you know you can afford to lose.



Guide to the best NFT Marketplaces

It’s one of the inevitable questions from people not involved in the blockchain and cryptocurrency space – how can they, being entirely digital, have any value, in terms we generally understand (like the gold standard)?

The basic properties of any currency considered ‘sound’ include durability, divisibility, fungibility, portability, recognisability and scarcity. Most of these apply to digital currencies, but scarcity is hard thing to impose in the digital world.

It is, however, important, as value comes from scarcity – think gold and diamonds.

Creating scarcity for cryptocurrencies was a major challenge.

## Holding Value

Money is a measurement of value and a medium of exchange. It has become like a universal language; we just use it and take it for granted. 

That change is the result of money’s relative scarcity and the impact on money's value of the increase in its supply is called inflation.

When countries suffer from inflation, you see volatility in prices and monetary value. That’s why we shouldn’t take the stability of sound money for granted.

If the key to money holding value is scarcity, how does cryptocurrency achieve digital scarcity?

## Digital Scarcity

To be scarce, there must be a limited supply of the commodity, and it can’t be easy to replicate. This can be relatively easy to achieve and assess when we talk about a physical commodity, but digital is a different world.

Digital material can be copied easily and cheaply – just ask the entertainment industry – which is why cryptocurrency is not simply a file you keep on your hard drive. If it was, it could just be copied and copied and copied, reducing scarcity.

All forms of digital currency, whether crypto or fiat, rely on an accounting system based on [digital ledgers](https://knowledgebase.datagumbo.com/knowledge/what-is-a-digital-ledger), which are an organised record of debits and credits against account holders, providing a running balance.

This shouldn’t worry you. Almost all fiat money only exists digitally (ie, everything in your bank account), so it is a system you already trust.

As an example, [Bitcoin (BTC)](/coins/btc) as a cryptocurrency is also based on a digital ledger. The crucial difference is the rules around if/when/how much new money is added to the system and how the ledger is maintained. It is these differences that change everything. 

## Trust

We can only consider money useful if the ledgers can be trusted as accurate and honest and supply is controlled.

For fiat currencies this is dealt with by the relevant government managing the ledger for its currency, controlling the physical creation of the money and allowing credit and debit relationships between itself, the banks and the people.

It achieves this by having a central bank with allows select institutions, like banks, to keep their own ledgers. When you add up all the credit in all the records of all the institutions, including the central bank, you know the total supply of that currency.

There is then a consensus that the only books we trust are those kept by these institutions, and that they will be maintained properly. We collectively agree they will meet their obligations and the rule of law.

The traditional money systems are held together by this authority-based trust, and we can use our money online because we trust that banks won’t let people cheat and spend more money than they have. 

We have even trusted them to ‘create’ money, lending out more than the deposits they hold, and assuming risks for complex investment strategies.

Obviously, this is an oversimplification, but the general principles rely on trust. While it generally works, there are weaknesses – for example, money in a bank may be yours, but isn’t strictly in your control.

In addition, a single central point of failure is more vulnerable to corruption, manipulation and external pressure, opening the door to abuse, mismanagement, and economic exclusion.

The most worrying feature of fiat, though, is how it undermines scarcity.

## Money Supply

Economic activity creates value, and that means new money must be introduced to allow the economy to grow. To oversimplify again, new fiat money is created by commercial banks, overseen by the central bank.

Common ways of this happening are:
- Providing credit, like loans, to new customers that become deposits 
- Buying existing assets, which become deposits
- Providing overdraft facilities, which are deposits that can be spent

Getting the rationing right is a delicate balance; create too little money and spending slows, create too much and the value is diluted, putting prices up. This, in effect, is inflation.

This means human institutions are ultimately in charge of money supply, which in turn means there’s no real scarcity. To many, this means fiat currencies, by definition, cannot be considered sound money.

Centralised systems can be vulnerable, but, had been, arguably, the only way to make a secure digital money, but not a sound one. Then along came bitcoin, using this approach from the very beginning.

Guide to Crypto Scarcity and Trust

Without question, [Bitcoin (BTC)](/coins/btc) and the Bitcoin network are the best-known names in blockchain and cryptocurrency. 

The individual, or group, behind the invention of Bitcoin, remains pseudonymous, and this has arguably had a massive impact on the community.  Additionally, there is no individual with total power or control over the system. 

 
 

## Cryptography 


A simplistic way to think of Bitcoin is a combination of computing, cryptography, and a system of economic competition designed to ensure following the rules is in everyone’s best interest, without a central authority. The network manages itself, with no single party controlling the system. 
Honest work that supports the network, such as validating transactions, is rewarded, creating a mechanism for new bitcoin to be programmatically introduced into the system in a predictable way, achieving the key quality of scarcity. 
While Bitcoin participants may at times have conflicting interests, they share the goal of seeing Bitcoin succeed. But who controls the Bitcoin ledger, and how does it achieve sound money? 

 

## Design 

 
 

Bitcoin can be explained as a peer-to-peer network of computers all following a set of rules and instructions (the Bitcoin protocol) for validating transactions and issuing new coins. Any computer running any software that respects these rules - Bitcoin Nodes - can participate in the Bitcoin network.  
 

The protocol is like the banking laws of a country, but the Bitcoin protocol is enforced by code, and not by law. 

Bitcoin has a ledger of all the transactions - the blockchain - where transactions are recorded in blocks created at set intervals and connected to the previous block to create a chain. Then there is the mechanism for adding blocks to the chain and reaching an agreement, or consensus, that transactions are valid and the chain accurate – this is mining. 

The ledger and the way transactions are validated are revolutionary.  

We trust banks to maintain the integrity of their ledgers, but cannot verify this for ourselves. On the Bitcoin network, anyone can have a copy of the ledger containing every transaction ever made. This allows everyone to mathematically verify that every transaction in it is legitimate, and transactions that don’t respect the rules are automatically rejected by the software. 

This does lead to questions, however. For example, how do we all agree that the current version is the most up to date one and how can thousands of computers reach consensus without someone in charge? 

 
 

## Mining  

 
 

[Mining](https://www.investopedia.com/terms/b/bitcoin-mining.asp) is about solving a complex mathematical problem, and it is competitive, with the winner being able to add to the chain of transactions and receive a reward. 

Everyone can verify that the solution is right, so if a miner cheats, other participants will simply discard the block.  

In theory, anyone can mine, but the maths problems are so difficult, and the competition so fierce, you’d need a lot of specialised computer equipment. Despite the costs this can involve, it can be very profitable, and the competition ensures no one person has complete control. 

## Supply 

 
As mentioned, mining is also the way new bitcoin (BTC) enters the system. When a miner gets to add a new block of transactions to the blockchain, they receive a reward of new bitcoins. 

The transaction fee is the sum of fees paid for all transactions included in that block, which vary according to demand. This is BTC already in circulation. 

The block rewards, however, are entirely new coins and currently set at 6.25 BTC per block until 2024. This process will continue until all 21 million BTC are released, at which point miners will only receive transaction fees. 

It is this which gives BTC the scarcity its value needs. 

 
 

## Sound Money 

 
 

So, bitcoin achieves reliable digital scarcity with no one in charge. What about the other properties of sound money? 

- **Durability** – As every node has a copy of the ledger, destroying the Bitcoin network would require that all 50,000 nodes be destroyed at the same time, along with all backups. Unlikely. 

- **Divisibility** – The smallest unit of Bitcoin is the satoshi, which is 1/100,000,000 of one coin. That’s far more precise than even the smallest microtransactions would require, although network fees make that level of precision impractical at the moment. 

- **Fungibility** - All Bitcoin have equal value, just like one gram of gold is equal to any other gram of gold. 

- **Portability** – It is entirely digital and incredibly portable, and can be stored on a computer, mobile phone, and on paper. 

 
 

## Limitations 

 
No system is entirely perfect. For the Bitcoin network, the chief limitation focuses on the relationship between security, scalability, and decentralisation.  

- Scalability is the capacity of the system to execute a higher volume of transactions  

- Security is the capacity to protect the ledger from cheating and attacks  

- Decentralisation is what stops any one party from controlling the network 



When you design a network, you have to make trade-offs in this area as you can’t have all three completely. [Fiat currency](link) is scalable and quite secure, but is centralised and controlled by a small group. Meanwhile, Bitcoin is focused on decentralisation and is secure, but at the price of scalability. 

 

At the moment, Bitcoin's maximum transaction speed makes it impractical to scale (compare five transactions per second to the reported 50,000+ leading debit/card handlers deal with). This, to an extent, is why bitcoin is stored for value rather than used as a medium of exchange. 

What is Bitcoin? A Guide

The term “Metaverse” is all over the place at the moment; in the news, on social media, and even at the dinner table. The Metaverse, which serves as a link between the real and virtual worlds, is expected to grow rapidly in the coming years.

Here we look at the five Metaverse crypto coins tipped to be big in 2022. Read on!

## [Decentraland (MANA)](/coins/mana)

Decentraland, founded in 2018, had a significant head start in the Metaverse race. It is a leading Metaverse project built on the Ethereum blockchain which provides a virtual gaming experience to users worldwide.

Users can create and customize their characters, interact with other users, and explore the ever-expanding Decentraland universe. It is widely tipped as one of the best web 3.0 crypto coins to invest in this year.

Decentraland is unique as the first decentralized virtual reality system allowing users to communicate and interact with one another while also granting ownership of virtual land in the Decentraland metaverse.

In terms of investment, Decentraland has its cryptocurrency, MANA. Importantly, all transactions within the Decentraland game must be executed in MANA – giving the real token utility. Some of the most profitable transactions involve the purchase of virtual land and real estate, which frequently sell for more than a million dollars.

## Sandbox (SAND)

The Sandbox is a virtual gaming world where users can create and monetize gaming experiences. It is a popular platform, with a hundred sales completed every minute. Within the Metaverse, players can use SAND tokens to buy digital goods and participate in P2E. They also truly own anything they collect in the game.

The Sandbox is where users can create, earn, and trade in-game items. The Ethereum blockchain-based platform includes buying virtual land, buying virtual land, and building real estate, similar to Decentraland. After that, the property can be sold on the open market. The Sandbox, built on Ethereum blockchain, like Decentraland, has its native digital currency – SAND.

## [Axie Infinity (AXS)](https://axieinfinity.com/)

Axie Infinity, a metaverse crypto gaming pioneer, is an in-browser game featuring Axies. These Pokemon-like creatures are NFTs that can be purchased, bred, and traded. Non-gamers are drawn to the platform by the game’s virtual real estate. Players can use the AXS currency to make in-game purchases, stake their coins, and participate in community governance.

The Axie Marketplace is one of the industry’s most active. A single transaction in the game costs around $420 on average.

## [Enjin Coin (ENJ)](/coins/enj)

Enjin is the next on our list of Metaverse crypto coins. Enjin, founded in 2017, provides a globalized database that enables users to manage and store digital gaming products safely and securely. Furthermore, the platform streamlines buying and selling NFTs through a user-friendly mobile app that includes QR codes.

There’s much interest in Enjin Coin, especially following rumors of a Samsung partnership that saw ENJ prices skyrocket. Microsoft is also collaborating with Enjin to develop Azure Heroes, a program for acquiring digital collectibles. In addition, Enjin recently announced the creation of the $100 million Efinity Metaverse Fund to support its ecosystem partners.

## [Gala (GALA)](https://app.gala.games/)

Gala is a blockchain gaming platform founded on July 21, 2019, by Eric Schiermeyer. It combines Non-Fungible Tokens (NFT) to create a blockchain game ecosystem in which players can trade and own game assets at any time on a global scale. Gala Games’ goal is to take the gaming industry to a whole new level by giving players back control of the game. According to the platform’s website, Gala Games’ goal is to create “blockchain games you’ll want to play.”

GALA’s innovative gaming features are complemented by a strong emphasis on social media and community building. The team is dedicated to providing a fun and supportive environment for gamers to come together and share their passion for gaming. As a result, GALA is poised to become one of the leading platforms in the metaverse space, thanks to its unique gaming and social media features.

Metaverse projects are sprouting almost everywhere, but some have real potential and stand out. The ‘Metaverse’ concept is embedded in blockchain and cryptocurrency, so investment opportunities exist. Furthermore, the buzz surrounding NFT appears to be growing.

Remember, if you choose to invest, don’t put all your money into a single type of Metaverse crypto coin. Instead, diversify and, more importantly, purchase coins that you have researched and believe have potential.

This is a guest article by Brendan Beeken, find the article [on Brendan Beeken's website.](https://brendanbeeken.com/metaverse-crypto-coins-2022/)

Guide to the best Metaverse crypto coins

The pattern created by the ever-changing price of a cryptocurrency asset can be an indicator of what could happen next. The fluid prices, which reflect the sentiments of buyers and sellers, can be seen in a price chart.

Your challenge comes, as a trader, when you try to understand and interpret the information of the price chart and use it as part of your technical analysis to try and predict the direction of value.

## The Basics

Looking at a price chart in its most basic form, you will see a line graph on two axes illustrating price history for trades conducted between a specific pair of currencies.

Trading pairs are offered against base currencies - currencies which are the most liquid. As there are thousands of cryptocurrencies, enabling trading pairs between all of them and all fiat currencies would be impractical. Instead, exchanges offer trading against base currencies which are generally:

- Major Fiat currencies
- [Bitcoin](/coins/btc)
- [Ethereum](/coins/eth)
- Major Stablecoins 

Common trading pairs you may see include:

- EUR/BTC - Euro to Bitcoin trade
- USD/BTC - US Dollar to Bitcoin trade
- BTC/EUR - Bitcoin to Euro trade
- BTC/LTC - Bitcoin to Litecoin trade
- USDT/BTC - Tether to Bitcoin trade (Tether is a stablecoin)

When you watch a trading chart you will see what the price is at that moment for the chosen pair. It will turn green as it goes up, and red as it goes down. 

The chart is relative to the context of the specific trading pair and the key elements you will see include:
- The currency pair it relates to
- The x-axis which is a time scale
- The y-axis which is a linear value scale e.g USD
- Price plots, which are generated over time producing a line chart and spot price

The movement depicted in the chart is specific to this currency pair.

## Logarithmic Scale

Dramatic changes are visible when you look at an asset’s price changes. Switch to a log scale, where the Y axis plots two equal per cent changes as the same vertical distance on the scale, and you get a different perspective.

## Time and Candles

Remembering the difference between trading (short-term decisions) and investing (long-term positions), you need to decide what timescale you are operating in.

A chart will let you change the timescale it reports on, so you can look at a short period, for technical analysis, or a longer period. 

For a more detailed view of price movement, you will need [Candlesticks](https://crypto.com/university/how-to-read-crypto-candlesticks) (or Candles – so named because of the shape). Through four key elements - the top and bottom of the candle body and a wick (thinner line) above and below - a simple line plot is fleshed out with much more detailed information about what happened to price over a period, rather than the single plot.

## Price Direction

For easy reference, a green candle shows a price went up during the chosen period while red indicates the price fell.

This means a quick glance can, thanks to the colour, show you price direction. However, you got this with the simple plot chart, so what’s the benefit? Candlesticks fill in the gaps of how prices oscillated during the period.

**The Opening Price** - Each candle will tell you where the price opened. If the price increased during the chosen period, the Opening Price is shown by the bottom of the candle body. If the price fell, the Opening Price is at the top of the candle body.

**The Closing Price** – The reverse of Opening Price. If the price fell during the chosen period, the bottom of the candle is where the price ended for that candle duration. If the price rose, the Closing Price will be at the top.

**The Highest Price** – You want to know how price moved, by knowing the highest point it reached. This is shown by the tip of the wick at the top of the candle. Where price has increased over the period, the wick will extend from the Closing 

**Price** - top of the candle body - to the highest price reached.

**The Lowest Price** – As you’d expect, this is the converse of Highest Price, showing the lowest price that was reached with a wick extending from the bottom of the candle.

**Candle Duration** – In the trading charts that are interactive, you can zoom in and out to look at different periods of time.

As you look at the candlesticks more, you’ll begin to understand what they are telling you. Basically, the longer a candlestick, the more the price has moved during the period you are looking at. The longer the wicks, the greater the range of movement, known as Volatility.

Looking at price movement with the aid of candlesticks is a step toward technical analysis, giving the first layer of detail of price signal and pattern. 



Understanding Crypto Price Charts

Simply put, you need to invest time in cryptocurrency trading. The more you analyse, read, learn, and trade, the sharper your skills will become.

You need to allow time to research before making a decision, and the demands on your life may dictate what sort of trader or investor you become. If you have a full-time job, family, and active social life, be honest with yourself – do you have the time to do the necessary research and monitor your trades?

In cryptocurrency, the volatility of markets can mean you are under constant pressure and need to dedicate huge amounts of time.

## How Much?

The simple rule when it comes to decide how much to trade is ‘how much can you afford to lose’.

Before you decide how much to allocate, consider these rules:

- Never invest money you can’t afford to lose
- Don’t invest using a credit card or debt
- Don’t rely on unqualified trading advice
- Commit only a small proportion of your discretionary income
- Be prepared to see your investment decline
- Have an idea of what you are trying to achieve

Discretionary Income is the money you have left over after income tax and essential living expenses are covered. It is money you might choose to invest or save. 

There’s no rule on how to allocate this money, but common sense dictates the risk should be spread, with the largest proportion in the least risky area, such as savings. The smallest proportion should be allocated to the most-risky venture.

There is, of course, volatility and risk in cryptocurrency, so take that in account when considering the allocation of your discretionary income.

## Clear Objectives

It seems obvious, but have you asked why you are trading? No, to make money isn’t a good enough answer. Think about it; there are other ways to use your money to make a return, so there needs to be justification for the comparative risk of cryptocurrency trading.

When you have conducted your research, you may conclude that crypto can be considered a sounder investment than some fiat currency savings accounts. That means comparing cryptocurrency trading against non-fiat opportunities ranging from precious metals to property. Often, there is less risk here than in crypto.

After all this, you may conclude that crypto is the best place for your discretionary income with the risks measured and the potential rewards considered. This will help you to quantify your ambition. 

## Cost Averaging

Cost Averaging simply refers to making equal, regularly recurring trades, instead of a lump sum.

Some enjoy that cost averaging can mitigate concerns about volatility and choosing an entry point, as regular trades over time will smooth the ups and downs. Fundamental Analysis is important to help you make a judgement about the long-term viability of your chosen cryptocurrency asset. After that, your investment path is mapped out.

That said, cost Averaging works best when carried out over a period long enough to benefit from both a down cycle and an up cycle. And it is not risk free; over that time you will see the investment level fall, possible below what you initially put in, with on guarantee it will recover.

Thorough Fundamental Analysis will help you assess if you are prepared to take the risks associated with regular purchases, such as seeing your investment declining over an extended period.

## Technical Indicators

Once your Cost Averaging routine is established and you are comfortable with how it works and keeping records, you can consider using technical indicators to adjust your regular investments.

The aim is to adjust down your allocation at times when the market is overbought, and vice versa.

There are plenty of indicators to help you with this, so do your research. Standard charting tools, like Moving Averages, Relative Strength Index (RSI) or Bollinger Bands, can be used and you might look to an external indicator to inform the adjustments which you feel correlate with price, such as the US Dollar Index (DXY). 

You can use any model or indicator you choose, depending on what value you feel it has.

## Lump Sum Hodling 

When you start with Cost Averaging you may gradually move into trading-type decisions. There are drawbacks; it takes time to build a position, for example. You may instead choose to invest a lump sum rather than drip-feeding via Cost Averaging.

Both require Fundamental Analysis. However, given the increased exposure you have with a lump sum, please ensure you have done your research on top of following the normal golden rules.

Fundamental Analysis becomes even more relevant if you are committing a significant amount of savings. 

If you are happy with the decision to go with a passive long-term investment, following Fundamental Analysis, you still have to decide price entry point.

Technical Analysis can be used to decide an optimal point to make the lump sum purchase - using Technical Indicators as described above. 

Simple Crypto Trading Strategies

For many, cryptocurrencies are considered too volatile, especially when compared with traditional fiat currency. Fiat is a benchmark for pricing, a medium which can be used to buy and sell things. That is where [stablecoin's](/news/tag/stablecoin) come in.

A stablecoin offers the stability of fiat, combined with the borderless, peer-to-peer benefits of cryptocurrencies, as well as the full transparency of their movement.

This creates a unique bridge between the traditional economy and the growing crypto world, and that is why the national banks of many countries are considering their own digital currencies based on the stablecoin model.

[Central Bank Digital Currencies](/news/article/cbdc-uk) don’t fix the problems of fiat, especially the chief weakness of there being no cap on supply.

## What is a stablecoin?

An attempt to deal with the inherent volatility of cryptocurrency, the clue to a stablecoin’s purpose is in the name – stable.

They aim for stability by tracking both asset and currency values, alongside a specific fiat currency value, making a stablecoin as stable as the currency it tracks, and the mechanism used for the relationship with the underlying currency.

The most common currency used by stablecoin is the US Dollar and the first and still the biggest, stablecoin is Tether. 

Since it launched in 2014, more stablecoin's have followed, including ones based on the Euro, British Pound and Australian Dollar, as well as more volatile currencies like the Brazilian Real.

## Why are they useful?

Cryptocurrencies are volatile, with huge value changes possible day to day. To explain this, let's use [Bitcoin (BTC)](/coins/btc) and the Euro.

Imagine instead of buying your morning coffee for €4 every day you switched to paying by Bitcoin. As the price is constantly changing, the cost of your daily coffee would constantly change, sometimes up, sometimes down. This daily volatility isn’t seen with the Euro.

While over the long term the price of the coffee may actually work out less than you would have paid in Euros, that’s not much help when you need to budget day to day. Stability is necessary and uncertainty over price could see people spend less, causing economic damage.

The lack of uncertainty over price is a reason why many people are unwilling to spend or accept cryptocurrencies, preferring the predictability of fiat.

However, that doesn’t make fiat perfect. When you put your money in a bank, you lose control of it. If you want to transfer money across borders, you could face huge fees and delays. You may not have access to banking, or live in a nation with high inflation, removing your link to a stable fiat currency.

This is where stablecoin's become useful. They bring together the stability of fiat with the decentralised, global characteristics of cryptocurrencies.

## How do they work?

Just like any other cryptocurrency, stablecoin's are entries on a global shared digital ledger that can be transacted on decentralised, peer-to-peer global networks. 

Most run on established blockchains, like Ethereum, enabling stablecoin's to be launched relatively easily. There’s no real difference between trading ether (ETH) and an Ethereum-based stablecoin.

Stability is at the core of this offering, and there are different ways of achieving that. For example:

- Fiat collateral-based
- Crypto collateral-based 
- Algorithmic-based seigniorage
- Central Bank Digital Currencies (CBDCs)

## Fiat collateral-based stablecoin's

The first model to be used, the most prevalent and the most straightforward way to achieve stability. This method makes each unit of the stablecoin a representation of a unit of the fiat in the bank.

This means that each unit of this type of stablecoin is just a representation of an existing unit of fiat currency in its issuer’s bank account, and the supply is dictated by how much is on the bank account. If new stablecoin units are to be issued, more fiat must go into the bank.

This type of stablecoin can be based on commodities other than money, such as gold and silver.

Examples of this type of model include Tether, [Gemini](/news/article/gemini-crypto-review), [Paxos](/news/article/circle-paxos-crypto-approval-singapore), and TrueUSD, all matched with the US dollar, Digix, which is backed by gold, and Globcoin, which is based on a basket of currencies.

## Crypto collateral-based stablecoin's

The consolidation of crypto markets has paved the way for a class of stablecoin collateralised entirely on crypto assets.

It uses smart contract technology, reducing reliance on companies and human behaviour, to create a purely on-chain stablecoin based on the value of the underlying cryptocurrency (or cryptocurrencies).

Unlike fiat-based stablecoin's, this type requires over-collateralised deposits so that any fluctuations in value of the underlying crypto don’t cause an issue.

DAI was the first and crypto collateral-based stablecoin.

Initially, Ether (ETH) was the only cryptocurrency accepted as collateral, but later crypto collateral-based stablecoin's have adopted a multi-collateral approach, which means can deposit many other Ethereum-based tokens as collateral.

## Algorithmic-based seigniorage stablecoin's

In this model, the stablecoin tries to mirror the traditional central bank mechanism, but using smart contracts that try to adjust supply in circulation based on demand for the currency.

It tries to maintain price levels by issuing more tokens when demand is high, via interest-bearing shares, and removing tokens when demand falls, using a system of redeemable bonds and automated buybacks.

As the expectation is that the mechanism will keep the stablecoin stable, this model does not have an underlying asset, unlike collateralised models. However, this is an experimental and largely unproven concept, and has attracted negative attention from regulators.

Very few projects exist, such as Bdollar, and usually with limited circulating supply.

## CBDCs

As cryptocurrencies become viable and an efficient alternative to traditional payment systems and start to be used in more areas of the economy, winning over ever more sectors of the economy, it’s inevitable governments will want to get involved.

This is where we see central bank digital currencies. CBDCs are not cryptocurrencies or stablecoin's, but include features of both. They are stable, as a re-engineered form of a national currency, and include elements you’d see in cryptocurrency.

Think of them as a hybrid of a cryptocurrency, like bitcoin, and a fiat currency. Most CBDC proposals use a blockchain or other distributed ledger system (DLT) to keep a single ledger of payments and transactions, like crypto. 

This allows greater efficiency and gives the central bank a single ledger to account for money supply while also reducing reliance on commercial banks for issuing new money into the economy.

As they come online, CBDCs are expected to be permission networks – unlike the open nature of true crypto networks – as governments don’t like to give up control. This means validation of transactions will likely remain with regulated bodies, possibly including the private sector.

Again, unlike crypto, money supply and monetary rules are likely to stay controlled much like fiat currencies today are, albeit with more direct control by the central bank.

It is still too early to know too much for sure with CBDCs and, in the meantime, stablecoin's do a good job of bridging the gap between fiat and crypto.

## The Future

Stablecoin's are a fast-growing type of cryptocurrency and without the price stability they bring, it would be hard for cryptocurrencies to offer complex financial instruments, like loans, and become a bigger part of the global economy.

There remain challenges to cryptocurrencies becoming part of the mainstream, including regulation.



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