Cryptocurrency Tracker

It’s been another rollercoaster week in the world of crypto with some interesting developments taking place. Tesla softens its stance on Bitcoin transactions; Kazakhstan plans to introduce crypto mining tax; Thailand bans joke cryptocurrencies and NFTs; and More Latin American countries look to follow El Salvador’s lead with crypto adoption.

Tesla softens its stance on Bitcoin transactions

The price of Bitcoin rose slightly following encouraging comments by Tesla’s CEO, Elon Musk, who said that the world’s number one cryptocurrency is still a viable form of payment for purchasing its electric vehicles. Payment with Bitcoin will only be considered, however, once the cryptocurrency has shifted to mining with cleaning energy.

Musk came under fierce criticism from Sygnia’s CEO Magda Wierzycka recently, when she said, “What we have seen with Bitcoin is price manipulation by one very powerful and influential individual.” The Tesla boss was defiant in his response, stating that Tesla will resume allowing Bitcoin transactions once there is confirmation of reasonable and clean energy usage by miners with a future positive trend.

Musk’s most recent comments appear to have reassured investors that Bitcoin still possesses incredible purchasing power, despite its highly unsustainable energy usage in existing mining operations.

Kazakhstan plans to introduce crypto mining tax

With so much focus on China’s tough stance on crypto mining within its borders, the attention has swiftly turned to Kazakhstan where an influx of crypto miners has surfaced in the past few weeks. Authorities in Kazakhstan are now considering imposing taxes on crypto miners and data centres that are currently tax-free.

It is anticipated that an amendment to the Tax Code of Kazakhstan will be proposed to curb the unregulated consumption of electricity used by crypto mining farms in the transcontinental country. As part of the proposal, it is expected that a small tax imposition of one tenge per one kilowatt per hour will be charged from 1 January 2022, provided there are no delays with the adoption of this law.

While this tiny tax imposition appears to be more of a symbolic warning rather than a real one, it will help Kazakhstan authorities with the preparation of crypto administration processes. Deputy of the Kazakhstan Tax Code Department, Albert Rau, said, “We have to adjust our legislation with real life because, as a matter of fact, mining work in the country is done in a parallel reality.”

Although the tax fees are relatively minor, President of Kazakhstan’s Blockchain Association, Alan Dorjiev, didn’t appear impressed as he stated, “Implementation of a new additional tax in a specific industry, in this case in the mining industry, can cause a precedent that would affect Kazakhstan in terms of investment attractiveness. Investors are used to evaluating the risk of regulation impact and would prefer more stable and reliable jurisdictions”.

Thailand bans joke cryptocurrencies and NFTs

The Securities and Exchange Commission in Thailand has taken steps to ban certain cryptocurrencies and non-fungible tokens. They focused on four specific types of tokens:

• Meme tokens that regulators classify as having no clear identity or purpose, and no underlying value as its prices fluctuate with social media commentary;
• Fan tokens that are only in existence due to influencer fame;
• Non-fungible tokens (NFTs) are emerging applications of blockchain that signifies ownership of digital assets; and
• Tokens that are issued by digital asset exchanges or related persons.

The main target for Thailand’s Securities and Exchange Commission appears to be digital exchanges, with the new ruling making it more difficult for exchanges that handle trades to operate within its borders. In terms of the last type of token – those issued by digital asset exchanges – the ruling will make it harder for investors to create tokens to trade amongst themselves, or for their customers to use to make payments for services.

This decision will likely impact mainstream tokens like Dogecoin together with other less prominent coins in circulation. The motive behind this policy aims to reduce money laundering and promote a more stable financial system in Thailand.

More Latin American countries look to follow El Salvador’s lead with crypto adoption

Following El Salvador’s ground-breaking announcement that Bitcoin will be used as official tender in their country, many Latin American countries appear to be warming up to the adoption of cryptocurrencies. While the International Monetary Fund envisaged legal and economic issues regarding El Salvador’s adoption of the cryptocurrency, this hasn’t dampened the spirits of many of El Salvador’s neighbours, who hope to follow suit.

Member of the Panamanian Parliament, Gabriel Silva, stated soon after the announcement, “This is important, and Panama cannot be left behind. If we want to be a true technology and entrepreneurship hub, we have to support cryptocurrencies. We will be preparing a proposal to present at the assembly.” Paraguay’s National Deputy, Carlitos Rejala, also showed his support by tweeting, “As I was saying a long time ago, our country needs to advance hand in hand with the new generation. The moment has come, our moment.”

Many prominent members of Latin American countries changed their Twitter profile pictures to laser eyes following El Salvador’s news, signifying eyes that are laser-focused on Bitcoin’s prices topping $100,000. Tyler Winklevoss, co-founder of crypto exchange Gemini said, ”First they ignore you, then suddenly Paraguay, Argentina, Panama, Brazil, El Salvador, Nicaragua embrace Bitcoin.”

Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.

A market cap is the entire value of all mined crypto coins in circulation. Otherwise known as market capitalisation, it is calculated by multiplying the existing price of a specific coin with the total number of that specific coin currently in circulation.

Market caps are particularly helpful for investors as they serve as a guide in terms of a coin’s stability in the market. Although cryptocurrencies are volatile in nature, coins with larger market caps are known to be more stable. Large-cap cryptocurrencies typically have values above $10 billion while mid-cap cryptocurrencies have values that range from $1 billion to $10 billion.

What is a small market cap?

Small-cap cryptocurrencies are those coins with a market cap of under $1 billion and are usually in the early stages of development. Investors are drawn to small market caps as they have the potential to provide the highest returns. Small-cap cryptocurrencies can be described as the hidden gems of the crypto market as they are in the initial phase of development and offer the hope of a huge return on investment.  Small-cap cryptocurrencies tend to outperform large-cap and mid-cap coins historically, although they are more volatile and can be riskier investments.

Top 3 small caps for 2021

The top 3 small-cap coins for 2021 are currently Horizen, Qtum, and Mdex.

Horizen lies in first place and has a market cap of just above $1.01 billion, down 21.21% from the last week. Its unit price is $91.39 at the time of writing. Qtum holds second place with a market cap sitting at just over $1 billion, down approximately 19.74% from the last week. Its unit price is around $10.21 at the time of writing. Mdex takes third place fractionally with a market cap of just over $976 million, down approximately 12.59% from the last week. Its unit price is sitting around $2.14 at the time of writing, just pipping Revain and Nano to third place.

Overview of Total Market Cap

At the time of writing, the total crypto market cap is sitting at $1.64 trillion; a rise of 7.79% from the previous 24 hours with Bitcoin, Ethereum and Tether filling the overall top 3 spots.

Smart ways to invest

It is important for investors to work smartly when investing in cryptocurrencies. Investors should study the various coins on the crypto market to understand the utility it contributes to the world of cryptocurrencies. It is recommended to invest based on calculated risks, and this is only possible once you have a thorough understanding of the markets.

You must always remember that you should only invest what you are prepared to lose. With that being said, an excellent strategy for investors is to diversify their crypto portfolio to reduce their risk. You can try to invest in bundles where you spread your funds across different cryptocurrencies that are grouped together.

One option is to create a bundle of the biggest and most successful cryptocurrencies that you can use for a long-term investment. Another great idea is to invest in small-cap crypto assets before they become too popular. This enables you to buy small with potentially large profits – so the key is to act early.

You can also try Smart Contract bundles where you invest in those cryptocurrencies that enable smart contract functionality. With this, it is a good idea to look at those cryptocurrencies that are trying to challenge Ethereum’s dominance with blockchain technology.

Another smart investment is Payment bundles that enable users to invest in payment-focused cryptocurrencies that aim to compete with government-issued fiat currencies. These cryptos enable digital payments to be cheaper, faster and more global.

Final Thoughts

For crypto investors who are looking to diversify their portfolios, it is wise to consider the top 3 small-cap cryptocurrencies due to their potential for growth which leads to incredible profit margins. When diversifying your portfolio, always study the small-cap cryptos for their potential and invest based on calculated risks. Make sure to use established platforms like Wisly to track and analyse your small-cap investments, and get the most bang for your buck. Good Luck!

Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.

It’s been another crazy week in the world of crypto with some notable headlines making for interesting crypto conversations. The price of Bitcoin dips as Donald Trump labels it a scam; El Salvador plans to make cryptocurrency legal tender; Huawei jumps on the crypto bandwagon; and Miami penthouse breaks the record for most expensive crypto sale.

Bitcoin dips as Trump labels it a scam

The price of Bitcoin dipped under $33,000 in the last 24 hours as former US President, Donald Trump, labelled the cryptocurrency as a scam. Speaking about his opinion on the US stock market and cryptocurrencies, Trump urged US regulators to take action and monitor the cryptocurrency. He claims that Bitcoin is a competitor to the US Dollar, which he wants to be the world’s currency.

Trump said, “Bitcoin, it just seems like a scam. I don’t like it because it’s another currency competing against the dollar… My opinion is that the currency of this world should be the dollar, and I don’t think we should have all of the bitcoins of the world out there,” elaborating, “I think they should regulate them very, very high.”

This isn’t the first time that the former US President has been critical about Bitcoin as he clearly stated that he wasn’t a fan of Bitcoin and other cryptocurrencies during his tenure in 2019. At the time, he said, “Unregulated Crypto Assets can facilitate unlawful behaviour, including drug trade and other illegal activity…”

El Salvador plans to make cryptocurrency legal tender

El Salvador is going ahead with its plans to make cryptocurrency a legal tender in the Central American state. This comes after President Nayib Bukele proposed a bill advocating for its official use in the country. The bill is expected to pass El Salvador’s legislative assembly and will be the first country in Central America to adopt a digital currency as legal tender, once implemented.

President Bukele’s Nuevas Ideas party holds the majority in the legislative assembly, making the adoption of the bill extremely likely. If passed, El Salvador will be the first country in the world to adopt Bitcoin as a world currency and will hold it in its reserves. This news is a welcome boost for many of El Salvador’s citizens as up to 70% of them do not have a bank account.

While the benefits of officially adopting a cryptocurrency as legal tender are unclear, it will reduce El Salvador’s reliance of their economy on the US Dollar and other fiat currencies issued by central banks across the globe.

Huawei jumps on the crypto bandwagon

Huawei has continued with its crypto push by partnering with the popular blockchain app, Maiar. Powered by Elrond Network, Maiar announced that Huawei users now have immediate access to its crypto wallet on the AppGallery store. According to their announcement, Huawei users now have the ability to convert their phones into biometrically secure hardware wallets.

The app offers greater security through its digital identity layer that works by mapping the phone number to a wallet address. This is an additional layer of privacy protection for users. Moreover, the app makes it easier to transfer money with the number connected as users can ping money to people in their contact list without collecting personal information.

Global VP of Finance Vertical at Huawei Consumer Business Group, Siri Børsum, expressed his delight with the launch saying, “Maiar’s debut in the AppGallery will empower our customers with an important tool that will help them take control of their financial health… blockchain technology will play an essential role in advancing the consumer internet, which needs to be mobile, personal, and secure.”

Miami penthouse breaks the record for most expensive crypto sale

A penthouse in Miami now holds the global record for the most expensive property purchased with cryptocurrency. An anonymous buyer purchased the penthouse for a whopping $22.5 million, making it the most expensive cryptocurrency-based real estate purchase ever made. Based in Surfside neighbourhood in Miami, it was the first of 16 units put on the market.

The Arte Surfside by Antonio Citterio announced in mid-May that it would accept cryptocurrency as payment for some of its units. Just a few weeks later, the first unit was sold. The penthouse is located on the ninth floor of a 12-story building and has four bedrooms and four bathrooms with panoramic oceanfront views.

Arte Surfside has not revealed the name of the buyer nor the type of cryptocurrency used for the purchase. Arte’s co-developer, Giovanni Fasciano, was ecstatic with the sale saying, “Cryptocurrency is the future of wealth, and we believe this is only the beginning… Arte has set the precedent for what these sales can look like, and how fast they can take place. We’re proud to have laid the groundwork for this new, burgeoning world.”

Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.

Market cap, short for market capitalisation, is the total value of all mined coins in circulation. It can be calculated by multiplying the current price of a specific coin or token with the total number of that specific coin currently in circulation.

A market cap provides investors with a great indication of how stable that coin is likely to be. While cryptocurrencies are volatile by nature, those coins with bigger market caps offer more stability to investors. Large-cap cryptocurrencies usually have a value higher than $10 billion, while small-cap cryptocurrencies usually have a value below $1 billion.

Mid-cap cryptocurrencies have market caps that range from $1 billion up to $10 billion and attract investors with their untapped potential. These cryptocurrencies are well established and are steadily expanding with an expectation of swift future growth.

Why should you consider market capitalisation before buying crypto?

Market capitalisation gives investors a very good indication of how stable their investment is likely to be. It provides an all-inclusive view of the crypto market when you want to compare value from a range of cryptocurrencies.

Typically, coins with large market caps have more stability and easily attract investors. For those people who are looking towards long-term investments, small-cap cryptocurrencies should be avoided as they are susceptible to volatile market swings that could leave your investment in tatters. Mid cap cryptocurrencies offer an element of stability with fantastic potential to improve.

By using market cap as a reference, investors can get detailed comparisons about the value of various cryptocurrencies in circulation in order to make more informed investment decisions.

What is a mid-cap cryptocurrency?

Mid-cap cryptocurrencies can be described as a sweet spot for investors as they have proven their value over a sustained period and still offer plenty of opportunities for growth. Although still volatile by nature, they do have enormous potential with an element of controlled risk – the perfect combination for a smart investment.

Mid-cap cryptocurrencies are more volatile than large-cap cryptocurrencies and carry a higher risk of investment. It can be said that coins classified as mid caps are in the stage of increasing their utility and are on a steady upward trajectory towards reaching their true potential.

Due to these dynamics, mid cap coins offer a higher growth potential than the more established large-cap coins. In an overall sense, mid-cap coins usually perform well over the long term and are a great option for those investors who want to diversify their portfolio.

Top 3 mid-cap cryptocurrencies for 2021

The top 3 mid-cap coins for 2021 are currently Polygon, Solana, and Stellar.

Polygon takes first place and has a market cap of just above $10.2 billion, down 16.93% from the last week. Its unit price is an attractive $1.63. Solana is firmly in second place with a market cap sitting at just over $10 billion, up approximately 17.90% from the last week. Its unit price is hovering around $37.10 at the time of writing. Stellar is in third place with a market cap of just over $8.9 billion, down approximately 3.42% from the last week. Its unit price is sitting around $0.38 at the time of writing, pipping VeChain and Ethereum Classic to third place and fractionally down 3.6% from the last week.

Overview of Total Market Cap

At the time of writing, the total crypto market cap is sitting at $1.78 trillion; a rise of 6.59% from the previous 24 hours with Bitcoin, Ethereum and Binance Coin leading the pack up top.

Final Thoughts

For those people who are looking to invest in cryptocurrencies, it is wise to consider the top 3 mid-cap cryptocurrencies due to their established profiles and incredible potential for growth. For those who want to diversify their investment portfolio, mid-caps should surely feature on their list. Make sure to use established platforms like Wisly to track and analyse your mid-cap investments, and maximise your performance. Good Luck!

Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.

It’s been another interesting week in the world of crypto with some fascinating developments taking place. Miami plans to host the biggest cryptocurrency conference in history; China’s two largest online brokerages step into the global crypto trading market; Coinbase hopes to fight crypto misinformation with its own media arm; and India confirms that banks cannot restrict cryptocurrency transactions.

Miami plans to host the biggest cryptocurrency conference in history

Miami is set to host the largest cryptocurrency conference in history this week with an expected attendance of over 50,000. The conference will be held at the Mana Convention Centre in Wynwood and will run from June 3 to June 5.

The conference was initially planned to be held in Los Angeles from April 30 to May 1 but those plans were scuppered after concerns over California’s strict COVID-19 protocols. The date was also moved a month forward to allow for the second wave of the coronavirus to pass and for the vaccination programme to roll out easier.

The conference will welcome some reputable attendees including Jack Dorsey, CEO of Twitter, and Francis Suarez, Mayor of Miami, who recently mentioned that he envisages Miami as a crypto hub and wants to allow citizens to pay taxes and fees using Bitcoin. Suarez said, “We want to be one of the most crypto-forward and technological cities in the country… So we’re looking at … creating a regulatory framework that makes us the easiest place in the United States to do business if you’re doing it in cryptocurrencies.”

China’s two largest online brokerages step into the global crypto trading market

While Chinese authorities continue to crack down on crypto trading within its borders, China’s two largest online brokerage companies, Tiger Brokers and Futu, are planning to increase their global footprint in the crypto market.

Beijing-based Tiger Brokers and Shenzhen-based Futu hope to compete with global giants like Robinhood and eToro, and have recently applied for local licenses in the US and Singapore. Both Chinese brokers believe that rising interest in cryptos coupled with participation by retail and institutional players will give brokerages an advantage in the crypto market.

The management teams of Tiger Brokers and Futu have made it clear that crypto trading services will only target customers that are not based in China. CEO of Tiger Brokers, Wu Tianhua, said, “We notice cryptocurrencies, such as Bitcoin, have become more acceptable by mainstream investors since last year and are emerging as an asset class. Tiger’s mission is to make investing more efficient and enjoyable for investors.”

Coinbase hopes to fight crypto misinformation with its own media arm

Cryptocurrency exchange platform, Coinbase, wants to become a source of truth amidst claims of biased journalism that promotes conflict of interest and misinformation. Coinbase believes that all tech companies should have the ability to speak directly to their audiences by becoming media companies in their own right.

Coinbase says that plans are in place to create its own media arm due to the rise of false information about cryptocurrencies that frequently appear in the press and social media. While the intention of this information is not always negative, the impact of false information is damaging to the industry. A recent blog post by Coinbase outlined three potential courses of action such as, let it happen, fight it, or publish the truth.

CEO of Coinbase, Brian Armstrong, was clear that publishing the truth offers a middle ground that entails establishing a direct relationship with the public. They plan to use a fact-checking approach to show transparency, even if those facts have a negative effect. Coinbase also plans to launch a sub-section of its blog called Fact Check that aims to fight misinformation about the company and cryptocurrencies. Industry reactions are mixed, however, as while some appreciate the project, others anticipate an information war where answers are ambiguous and may never be found.

India confirms that banks cannot restrict cryptocurrency transactions

India’s central bank, the Reserve Bank of India (RBI), has confirmed that restrictions on cryptocurrency transactions are no longer in effect. This announcement comes amidst much confusion surrounding a recent letter sent to bank account holders regarding cryptocurrency transactions.

Two of India’s largest banks, HDFC and SBI, recently sent notices to their account holders that warned them that cryptocurrency transactions were not permitted according to RBI guidelines. The notice referred to an April 2018 document published by the RBI that ordered: “entities regulated by the RBI shall not deal in cryptocurrencies or provide services for facilitating any person or entity in dealing with or settling cryptocurrencies.”

The RBI has sought to quell the fears of account holders by clarifying that those guidelines are no longer valid. They made reference to India’s Supreme Court order of March 2020 that ruled in favour of crypto investors in India and overturned that ban. A statement from the RBI said, “The circular is no longer valid from the date of the Supreme Court judgment, and therefore cannot be cited or quoted from…”

Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.

What is a market cap?

Market capitalisation, otherwise known as a market cap, is the total value of all mined coins in circulation. In order to calculate the market cap, you must multiply the number of crypto coins in circulation by the current market price of a single crypto coin at any given time.

Market cap can be described as an estimate of how stable that digital asset is likely to be. While some of the biggest crypto assets remain volatile, any cryptocurrency with a higher market cap will most probably offer a more stable investment as opposed to those cryptocurrencies with smaller market caps. With that being said, cryptocurrencies that have smaller market caps are at the mercy of the market and are prone to massive gains and dramatic losses in a short space of time.

Market cap is either referred to as circulating supply market cap or fully diluted supply market cap. The circulating supply indicates the coins that have been mined while the fully diluted supply indicates the coins that will eventually be mined. In terms of calculating market cap, some use the currently circulating supply while others use the fully diluted supply.

Why is market cap important?

While price is one way that you can measure the value of a cryptocurrency, many investors use the market cap to provide a more holistic view, especially when comparing value across different cryptocurrencies. With that being said, investors must always consider the volatile nature of cryptocurrencies that may cause dramatic swings in those market caps.

What can you do with a market cap?

Essentially, a market cap gives investors the ability to make detailed comparisons regarding the value of different cryptocurrencies. With this information, investors can make more informed investment decisions. The market cap of cryptocurrencies can be classified across three categories:

Large-cap cryptocurrencies

Large-cap cryptocurrencies include the biggest cryptocurrencies in circulation, like Bitcoin and Ethereum. This category has a market cap of over $10 billion and investors consider it a low-risk investment due to its excellent growth track record and typically higher liquidity. All of this means that large-cap cryptocurrencies have the ability to endure a greater number of investors cashing out without drastically altering the price.

Mid-cap cryptocurrencies

This category usually includes cryptocurrencies with market caps that range from $1 billion up to $10 billion. Investors consider these cryptocurrencies due to their untapped potential, although that comes with higher risks.

Small-cap cryptocurrencies

These cryptocurrencies have a market cap of under $1 billion and are prone to volatile swings based on market sentiment.

Overview of Total Market Cap currently

While investors use market trends, the stability of a cryptocurrency, and their financial situation as factors when considering the risks of investing. Referring to the market cap is exceptionally useful when comparing the total value of cryptocurrencies. At the time of writing, the total crypto market cap is sitting at $1.74 trillion, a rise of 0.25% from the previous 24 hours.

Top 3 market caps for 2021

The top 3 market caps for 2021 are currently Bitcoin, Ethereum, and Tether.

Bitcoin’s market cap is currently sitting at over $743 billion, down approximately 1.23% from the last week. Its unit price is hovering around the $40k mark at the time of writing. Ethereum is firmly in second place with a market cap of over $328 billion, up approximately 3.41% from the last week. Its unit price is fairly stable at over $2,800 at the time of writing. Tether’s market cap is sitting at just over $61 billion, pipping Binance Coin and Cardano to third place and fractionally down 0.05% from the last week.

Final Thoughts

For those people looking to invest in cryptocurrencies, it is wise to consider the top 3 large-cap cryptocurrencies due to their higher liquidity and fantastic track record in terms of growth and stability. Make sure to use established platforms like Wisly to track and analyse your investments, and to maximise your performance. Good Luck!

Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.

It’s been a dramatic week in the world of crypto with Bitcoin taking centre stage in major stories. Bitcoin’s dip by around $30k was the largest crypto capitulation event ever recorded; HSBC decides not to offer Bitcoin and crypto products; Greenpeace scraps its Bitcoin donations channel, and Bank of England distances itself from cryptocurrencies.

Bitcoin’s $30k plummet was the largest crypto capitulation event recorded

According to data from a recent Glassnode report , Bitcoin’s dramatic losses last week was the biggest crypto capitulation event ever recorded, in terms of realised losses by Bitcoin investors. The report explained, “The magnitude of realised losses on-chain this week has, eclipsed all previous capitulation events, including March 2020, Nov 2018 and the sell-off that ended the last bull market in Jan-Feb 2018.”

With Bitcoin’s most recent crash, the number of profitable Bitcoin addresses fell to 76%, with 24% of Bitcoin addresses experiencing remarkable losses. The report also warned investors that Bitcoin would continue to be sold by the following categories of holders that are likely to offload their holdings:

• BTC holders who bought in the last 3 months and are at a loss;
• BTC holders who want to cash out a profit as they feel BTC has topped; and
• BTC miners who are forced to sell to cover operational costs and/or if the recent China ban has affected their BTC mining.

Bitcoin, in the short term, has been fighting back in an attempt to recapture the $40k mark with it trading at $38,600 at the time of writing.

HSBC decides not to offer Bitcoin and crypto products

HSBC has made the decision not to offer Bitcoin or cryptocurrency investment products to its customers. The recent swing in cryptocurrency value has reinforced HSBC’s negative stance towards crypto assets. CEO of HSBC, Noel Quin, said that the bank had no intention of operating a crypto trading desk or offering crypto-related investment products to its clients due to its volatile nature.

This announcement comes despite a growing trend for major financial institutions announcing crypto investment opportunities for their clients.

Earlier this month, Wells Fargo announced that major clients would be eligible for crypto investment products, while Morgan Stanley and Goldman Sachs are proceeding with their roll-out of institutional-grade Bitcoin funds for their clients.

Giving his opinion on HSBC’s position regarding Bitcoin and cryptocurrencies, Quin said, “I view Bitcoin as more of an asset class than a payments vehicle, with very difficult questions about how to value it on the balance sheet of clients because it is so volatile.” Quin did, however, show support for central bank digital currencies as they would be a simple and effective cross-border payment solution.

Greenpeace scraps its Bitcoin donations channel

Greenpeace has made the decision to scrap its Bitcoin donation channel amidst the concern over its excessive energy consumption. The Bitcoin donation channel was implemented in 2014 as a growing number of donors wanted to contribute with crypto. Greenpeace has since decided to cancel the facility as they find crypto mining is no longer tenable in this era of rapid global warming.

Greenpeace’s main concerns centred on Bitcoin’s skyrocketing energy consumption due to the price of Bitcoin shooting up. Travis Nichols, Greenpeace USA media director, mentioned that they had looked at the wider perspective as Bitcoin’s environmental profile came to light. He said, “The huge and ever-growing amount of energy needed to run Bitcoin is largely down to the particular technology used to maintain this digital currency, but it also points to a wider challenge for the future of the internet. As web services grow and become more complex, the demand for computing power will continue to go up over the next few years, and that will require much more energy.”

Bank of England distances itself from cryptocurrencies

The governor of the Bank of England, Andrew Bailey, has expressed his scepticism over cryptocurrencies and digital assets describing them as a danger to the public. In an address to the British parliament’s Treasury select committee, he said, “I’m sceptical about crypto-assets, frankly, because they’re dangerous and there’s a huge enthusiasm out there.”

Earlier this year, Bailey was firm in his views that cryptocurrencies do not have the structure that is likely to work as a payment alternative over the long term. He also reiterated his stance at a World Economic Forum event where he highlighted privacy concerns of cryptocurrencies describing that “it is an underestimated challenge of creating a digital currency.”

Bailey’s statements, however, are a slight deviation from two key executives at the Bank of England who publicly acknowledged the possibility of a state-run digital currency.

Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.

With a flurry of digital assets grabbing the headlines in the crypto market this year, we can take a closer look at the top three cryptocurrencies for 2021. The top cryptocurrencies in circulation usually have common elements which you should know about. Each crypto asset is essentially a computer code that uses a private key — typically random letters and numbers — that unlocks a virtual vault that contains a specific cryptocurrency. This private key is tracked on a blockchain that records all transactions.

Bitcoin was the first cryptocurrency in circulation and is by far the most popular. In terms of its value, it ranks head and shoulders above its competitors. Although it has experienced a dip at around the $30,000 mark, its value is still way ahead of other established cryptocurrencies. With a market capitalisation of over $744 billion, there’s no wonder it is the cryptocurrency of choice for most investors. Read on as we explore another three top cryptocurrencies for 2021.

Ethereum (ETH)

Ethereum is the second most popular cryptocurrency in circulation and has enjoyed an exponential rise in the first quarter of 2021. It was launched in 2015 and has proven to be extremely versatile with a strong community of investors. Ethereum underpins the Ethereum network, also known as the ‘world computer’. It used the public blockchain model of Bitcoin and improved on it by giving it the ability to code automated agreements, known as smart contracts, that are automatically executed when specific conditions are satisfied.

Ethereum has a market capitalisation of more than $313 billion at the time of writing. The Ethereum blockchain network also innovated by introducing Decentralized Apps, known as ‘Dapps’, and provides the foundation for the DeFi and NFT markets. Ethereum can be described as the fuel that drives the Ethereum operational model with a plethora of potential use cases.

Binance Coin (BN

Binance Coin was launched in 2017 and was founded on the Ethereum network initially. It is now the native currency of the Binance Chain and is regarded as Ethereum’s rival. It has a market capitalisation of $58 billion and is used primarily to pay fees and make trades on the world’s biggest cryptocurrency exchange, Binance. Binance users get incentives in the form of discounts for using the platform.

Binance Coin sets itself apart from other cryptocurrencies through a very special agreement from Binance. The crypto exchange has committed 20% of its profits towards buying back and burning Binance Coins that restricts its supply and boosts its value. Its commitment will continue until half of the total supply of Binance Coin, approximately 100 million, has been destroyed.

Binance launched Binance Smart Chain in 2020 and features many of the same smart contract and DeFi functionalities as Ethereum, with the improvement of a much quicker network. While many users are inclined to invest in Binance Coin, other users have been sceptical due to its centralised nature which is being managed and monitored by Binance exclusively.

Polkadot (DOT)

Polkadot is an open-source, decentralised network that was launched by the Web3 Foundation in 2020. It has a market capitalisation of over $26 billion and uses DOT as its native token. It is an interoperable and secure blockchain network that allows any type of data to be transferred across any type of blockchain. Polkadot is a multi-chain application environment where data can be transferred across open, public and permissionless blockchains together with closed, private and permissioned blockchains.

Polkadot’s interoperability is a key feature that enables communication and the exchange of any type of data or asset between applications, databases and various computer systems. The Polkadot network also offers great scalability as it makes use of a shared set of validators in order to secure transactions on multiple blockchains. With Polkadot, developers find it much easier to develop and connect Dapps, services and institutions, as well as enabling developers to create improved crypto solutions through parachains.

Final thoughts

While there are thousands of cryptocurrencies in circulation currently, the ones mentioned above appear to the best performing in 2021. Whichever cryptocurrency you choose to invest in, make sure to use reputable platforms like Wisly to effectively track and analyse your crypto investments. Good luck!

Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.

It’s been a mixed week for the crypto market with some interesting developments taking place. Bitcoin plunges to a 3-month low after Elon Musk’s tweets; Fox and Dan Harmon pair for first ever NFT animated series; Iranian authorities clamp down on crypto exchanges and Nigeria ranks first in Africa for crypto trading.

Bitcoin plunges to a 3-month low after Elon Musk’s tweets

Bitcoin dropped to its lowest level since February 2020 after Elon Musk tweeted that Tesla could sell or has sold its holdings. Its value rebounded somewhat when Musk clarified that Tesla had still held its stake. Finding itself at a low of $42,185 earlier this week, down by 35% on its April high of $65,000, the most popular cryptocurrency fought back to close at $44,896 at the time of writing.

Bitcoin has seen a dramatic fall in value since Musk indicated last week on Twitter that Tesla would stop accepting Bitcoin as payment for its electric vehicles due to the effect that mining has on the environment. The announcement created shockwaves in the market that started a broader sell-off in cryptocurrencies with Ether, DOGE and XRP also bearing the brunt of this news.

The suggestion that Tesla may have sold its Bitcoin stake that it bought for $1.5 billion in January 2020 sent investors into panic mode. Musk has been an influential force in the Bitcoin boom, and the thought of Tesla selling its stake would have devastating repercussions for the digital asset and its investors.

Fox and Dan Harmon pair for the first ever NFT animated series

Fox has made plans to launch a nonfungible token marketplace (NFT) for its new animated series, Krapopolis. The broadcasting company has paired up with Dan Harmon, creator of Rick and Morty, in what is described as the first ever animated series developed purely on the blockchain. This animated comedy series will launch together with a dedicated marketplace that will sell tokenized digital goods that include NFTs that depict the characters and artwork featured in the series.

Together with this partnership, Fox also announced the launch of a new NFT company called Blockchain Creative Labs. This new company is expected to manage the marketplace for Krapopolis and possible future shows.

Fox Entertainment CEO, Charlie Collier, was vague on details of the blockchain development but mentioned that plans were in place to introduce advertising partners to NFTs. He said, “Not to go too far into it today, but as an advertiser-focused, artist-first and animation-obsessed company, Fox is going to take advertisers into the world of blockchain-powered tokens, including NFTs.”

Iranian authorities clamp down on crypto exchanges

Crypto start-ups in Iran have voiced their disappointment at the Iranian government’s attempt to clamp down on crypto exchange operations in the country. Iranian fintech’s are adamant that there is no existing ban on cryptocurrency trading and that lawmakers and regulators should develop rules to facilitate decentralised money transfers.

The Iran Fintech Association (IFA) is an official representative of companies working in the sector and penned a letter to the speaker of parliament, Mohammad Baqer Qalibaf, and the head of the central bank, Abdolnaser Hemmati, stating “Resorting to restrictive measures is the simplest but not the best response to the issue. Doing so would deprive the nation of potential opportunities and create grounds for underground business.”

This comes after the Central Bank of Iran issued a warning in early May against crypto trading and reminded Iranians about the existing ban on transacting with crypto that is mined outside of its borders. The IFA were steadfast in their opinion that crypto was indeed legal to trade with. They said, “Government regulations only ban using cryptocurrencies for purchasing goods and services. It is explicit that trading cryptos aren’t illegal though traders are accountable for the ensuing risks.”

Nigeria ranks first in Africa for crypto trading

With blockchain technology and crypto trading making massive strides in trade, investment and payments, Nigeria continues to hold first place in the African financial ecosystem. In terms of trading cryptocurrency volumes, Nigeria ranks third in the world behind the US and Russia, with the African country generating over $400 million worth of transactions, as per a recent report by IC Intelligent Insights.

Although the Central Bank of Nigeria has taken steps to regulate crypto operations and related instruments in the country, growth has accelerated in Nigeria with digital money movements appearing to have replaced many cheque and cash transactions. Dr Desné Masie, Chief Strategist and Editor of Insights Newsletter – IC In­telligence, spoke positively about the impact of cryptos on the African financial ecosystem. He said, “With the trend of the seg­ment of the market, it may be of course that all money changing becomes digital in the end. Millennia ago it happened through barter­ing. Then progressed via metal items of exchange into currencies based on physical notes and coins. Followed by cheques and telex transfers, then interbank electronic exchanges. Now personal banking via Apps on mobile phones is widespread… Meanwhile, more cryp­tocurrency trading goes on in Nigeria than almost anywhere else in the world, reflecting a loss of faith in more traditional forms of in­vestment.”

Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.

Like with any investment that you may make, there are always risks associated with cryptocurrency investments. Digital currencies have grown exponentially despite wild swings in the crypto market, and investors are often left baffled by the unexplainable gains and losses experienced. Many view cryptocurrencies as the future of monetary exchange despite their unpredictable nature. Whilst there is great optimism for the crypto market, it is important to educate yourself on the risks of crypto investments.

Risks of cryptocurrencies

The risks that investors face when trading cryptocurrencies relate to its volatility. They are known to be high-risk and speculative, mostly due to sentiment, speculation, and market manipulation.

Regulatory

There is a lack of regulatory framework in the crypto market, which leads to uncertainty regarding manipulation and price volatility. Different countries have taken varying approaches in an effort to regulate cryptocurrencies. Since no unified regulatory system exists for cryptocurrencies, this increases the uncertainty surrounding crypto investments and the overall market. Although there has been a shift in perspective from some governments who are slowly adopting digital assets, the vast majority remain sceptical and have tightened restrictions on cryptocurrencies.

Technological

The technological aspect of digital assets develop fairly quickly. Whilst the more established cryptocurrencies may be at an advantage due to their popularity and large venture capital investments, there is always the technological risk that newer cryptocurrencies may emerge as a more advanced cryptocurrency. This, in turn, has the potential to devalue existing cryptocurrencies. The concept of cryptocurrencies continue to innovate as it develops, so it is possible for something unexpected to arise.

There is also the risk of a cryptocurrencies protocol software being infected with bugs. Whilst the likelihood of this is low, the continual developments and upgrades with new codes make its technology vulnerable to attack vectors. In terms of Bitcoin, developments like Taproot can make the currency’s underlying protocol prone to infiltration. Ether has a higher risk due to the Ethereum blockchain’s development of a proof-of-stake (POS) consensus protocol. The POS is an experimental technology, and with such projects comes the possibility of code bugs and failures that show up at the implementation stage.

Competitors

When looking at the two biggest cryptocurrencies in the market, Bitcoin and Ether, there is always the risk that a more efficient and secure competitor could replace those digital assets. Whilst the possibility exists, as these digital currencies are based on open-source code, the reality is that it is highly unlikely.

Due to the sheer size of both the Bitcoin and Ethereum networks, competitors may have difficulty usurping them. With regards to Bitcoin, not only does it enjoy strength in the number of active addresses, but it also has a considerable number of miners that secure the network by using computational power.

A competitor to Bitcoin would have to prize away these Bitcoin miners with a more profitable and attractive alternative. The Ethereum network finds itself in a similar position to Bitcoin, and competitors would have to offer something extraordinary to change the status quo.

Fraud and Money Laundering

The crypto market has seen its fair share of fraudulent activity, especially as cryptos gain more popularity across the globe. With interest levels in crypto increasing, fraudsters have created fake exchanges that aim to dupe unsuspecting crypto traders. The lack of security regarding fake exchanges creates a massive risk for investors. Although there are systems in place to curb this fraudulent activity, security remains a big problem in terms of counterfeit exchanges.

Crypto wallets are used to store your cryptocurrency, and many fake wallets have popped up. These fake wallets use malware to infect your device and aim to steal your passwords in order to access your information. Phishing scams are also popular amongst fraudsters that trick investors into thinking that certain websites or companies are authentic. They typically coax you into clicking on a link that redirects you to a fake page where your login details are required. Disclosing your login details on these fake platforms will enable fraudsters to access your funds with consummate ease.

Money laundering is another big concern in the crypto market as it is a system of unregulated cross-border space that has the potential for funds to move covertly. Much noise has been made about the anonymity of transactions, the difficulty in tracking their movements, and the lack of control. While digital assets do not actively promote illegal activity, their anonymous nature makes them an ideal platform for money laundering.

Tips to invest in cryptocurrency safely

If you are looking to invest in cryptos, you can follow these tips to get you started.

Diversify your portfolio

When it comes to your crypto, it is wise to diversify your investment. This means spreading your investment amongst different cryptocurrencies and not putting all your eggs in one basket. Established platforms like Wisly (link to https://wisly.io/) are fantastic to help you to track and analyse your portfolio, giving you incredible insight on the best places to diversify your investment safely.

Research exchanges

Before investing any of your crypto, it is vital to conduct some research into cryptocurrency exchanges. These are platforms that help investors buy and sell their crypto. There are hundreds of crypto exchanges to choose from, so make sure to check out reviews and speak to seasoned investors for advice. As mentioned above, many fake exchanges exist, so be sure that your exchange is reputable.

Prepare for volatility

As we have learned, the crypto market is volatile by nature. You must be prepared for highs and lows, with dramatic swings sure to get your pulse racing. Cryptocurrencies are still in their infancy, so it is best to start off conservatively with an investment that you are prepared to lose. With that being said, the overall trajectory of established cryptocurrencies in the market appears to have superseded many initial investments.

Bottom Line

Before diving into the world of crypto, it is essential to educate yourself and understand the risks and implications of trading. You must also be mindful of crypto regulations specific to your country so that you don’t fall foul with the authorities. Ultimately, crypto seems to be the future of transacting, with many warming to the idea of digital assets contributing to a more efficient and secure financial climate.

Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.