Moon Mag #27

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A note from Lisa…

Can you smell that?

Good Morning, Crypto World! (it may not be morning) I love the smell of Hopium in the Morning! For those of you likely as old as me, say that in Robin Williams’ voice, with a touch of Apocalypse Now, getting ready for the battle of the bulls. Are we there yet? Are we there?

Editorial

We find ourselves once again at the crossroads of economic sentiment. The resurgent bull market has been making headlines, sparking a renewed sense of optimism among investors. The world really is better green, as Kermit the Frog would say; I can see him dancing with joy.

But with the euphoria of the market, there is the danger of excessive hope, commonly referred to as “hopium.” I love a healthy dose of “hopium’ and often refer to myself as the President of Hopaholics Anon, HA for short, because we are laughing all the way to being our own crypto banks!

The million-dollar question right now… Is this just a sucker’s rally?

Is this the return of the Bull Market? Will this next bull market be as prosperous as the previous ones, and will we all make life-changing money?

Beware of the Dangers of Hopium: Inhaling “hopium” to an excessive and irrational degree by getting greedy and not using proper money management will cloud our judgment. Watch for signs of greed, especially when we see investors piling into highly speculative assets or adopting a “get-rich-quick” mentality.

Remember, often in crypto, what goes up must come down, but with a healthy dose of hopium, let’s hope the new cycle bull run is here.

While the return of the bull market is a cause for celebration, we must remain cautious about the potential dangers of excessive hope and greed. Make sure you are investing with a balanced approach, mindful of the risks and rewards. Take some PROFITS!!! I dare you! In fact, I double dare you!

❤️

As always, The Moon Mag will continue to provide you with the best reading in crypto! I hope you enjoy the November 2023 issue!

Lisa TheMoonMag.com

A note from Josh…

Hello, frens! I see a few old faces and even more new faces after the crypto market this month has had a massive pump! Whilst those of us who have been waiting for this most recent surge in activity are reaping the rewards, there are plenty of people who have decided to jump into the crypto world and see what it’s all about. Maybe a friend or family member mentioned it over dinner, or they saw an article online, but whatever it was, we welcome you to the industry!

In this issue, we look at some of the common questions that we get asked (why should I join a DAO?, what is ERC 4626?) and also some questions that don’t often get asked but are usually on many peoples’ minds - literally! The latter is the challenges around mental health and crypto article, which explores the psychology and effects that crypto can have on us, whether we realise it or not.

I highly recommend reading that article even if you don’t think it applies to you (it probably does!).

There’s also an incredible chance to WIN a GA Pass at The Australian Crypto Conference this month inside this issue. Lisa and I will be there, so come along and say hello. It’s set to be an epic event! In the meantime, enjoy issue 27 of the Moon Mag.

SUMMARY

TRADERS PERSPECTIVE

Same Chart Different Perspective

8

Crypto Cold Wallets Demystified

16

Challenges Around Mental Health & Crypto

28

Is It Possible To Buy Crypto Without KYC?

38

Why Should I Join A DAO? 45

Why Crypto Conferences Matter More Than Ever

52

Understanding ERC 4626: A Comprehensive Guide for Crypto Investors

58

Exploring Liquidity: Why Every Investor Should Master The Concept

67

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SPONSORS We are incredibly grateful to the following sponsors for their support. We run a ‘Sponsor A Writer’ campaign where crypto projects take part in an altruistic act of sponsoring our talented writers. By doing so, they play a crucial role in keeping the crypto economy alive and thriving, not only for our readership, but for the writers who provide the awesome articles.

DISCLAIMER All the content provided for you as part of the Moon Mag has been researched thoroughly and to the best of our ability however it is your choice, and your choice only, whether you wish to invest or participate in any of the projects. We cannot be held responsible for your decisions and the consequences of your actions. We do not provide financial advice. Please DYOR and above all, enjoy the content!

CONTRIBUTORS Daniel Jimenez Daniel has been a blockchain technology evangelist since 2012 and is a faithful believer in the Crypto ecosystem. Daniel also writes for Coin Telegraph!

Samantha Jimenez Freelance journalist dedicated to digital media, enthusiast of the crypto ecosystem and disruptive technologies. MDC writer since 2018, currently writer for CryptoTrendencia.

R. Paulo Delgado R. Paulo Delgado is a crypto and fintech journalist, freelance writer, and ghost writer. He cut his teeth as a web and software developer for 17 years. Now he uses those skills to write tech, business, and financial content for various businesses and news publications.

Chrom Chrom here, your friendly blockchain wordsmith! I joined the crypto party in 2017, have worn many hats, and I consider myself Jack of all trades. Been working as a DAO contributor, start-up advisor & research leader. Armed with a knack for turning technical jargon into engaging content. I fuse quirkiness and professionalism to deliver informative, optimistic writing that resonates with readers.

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TRADERS PERSPECTIVE

written by Lisa N. Edwards

Same Chart Different Perspective

This Trader’s Perspective covers the countless arguments we see daily between traders on X.com, TradingView, or similar platforms where Traders voice their opinions… I recently saw a wall hanging that said, “ But do you see this from my perspective?” This prompted me to think about trading and the various reasons why seeing something from another perspective is such a valuable tool to add to your trading arsenal.

Often, I find myself in a conversation with other crypto traders who are scrutinising the same chart but come to entirely different conclusions. It’s a curious facet of crypto trading and trading in general, one chart yet many different scenarios, often dubbed the trader’s “perspective” or “perception.”

While we won’t engage in endless debates about the correctness of each trader’s viewpoint (trust us, crypto enthusiasts can be exhaustive debaters), my objective here is to unravel the mystery behind why this intriguing phenomenon (happy I am writing that word, as I actually can’t say it) occurs in the first place. So, why can two traders perceive the same chart differently?

Different Time frames will often give differing immediate directions. But you also need to be aware if the trade goes in the opposite direction, you are using money management practices to minimise losses.

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Let’s delve deeper into why this occurs…

How can confirmation bias overshadow your trading experience?

Confirmation bias in crypto trading is a cognitive bias that often leads traders to seek out and interpret information in a way that confirms their preexisting beliefs and trading strategies. This bias can be especially detrimental in the highly volatile cryptocurrency world, where market sentiment can change rapidly. Traders afflicted by confirmation bias tend to overlook or downplay information that contradicts their outlook, leading to potentially poor investment decisions. Not using stop losses or any type of money management tools.

Image source - https://www.simplypsychology.org/confirmation-bias.html

They may only consider news or analysis that supports their position, reinforcing their existing views while ignoring warning signs or differing opinions. In my opinion, to succeed in crypto trading, it’s essential to be aware of this bias and actively seek diverse and balanced sources of information, as well as regularly reevaluate one’s trading strategies to avoid falling victim to the pitfalls of confirmation bias.

Diverse Trading Strategies One of the paramount factors that mould a trader’s perspective is the trading strategy they employ.

In crypto trading and trading in general, there are those we might label as “traditionalists.” They place their trust mainly in technical analysis, relying on tools such as support and resistance levels, Fibonacci retracements, moving averages, and other indicators. I personally love Elliott Wave.

On the flip side, some traders lean towards trend-following strategies; you’ll hear them say, “The Trend is your Friend.” These traders focus less on technical analysis and more on identifying and riding the waves of market trends. The crux of the matter is that the choice of trading strategy significantly impacts how traders perceive a given crypto chart.

For instance, a traditionalist may glance at a chart and unmistakably see an uptrend, while a trend follower may scrutinise the same chart and discern it as a consolidation phase before an impending downtrend resumes. Such divergent perspectives can lead to entirely discrepant trading decisions.

The concept of confluence is a critical element that further shapes a trader’s perspective. Confluence occurs when multiple indicators, patterns, or signals align, reinforcing the probability of a particular market movement. It’s akin to different pieces of a puzzle coming together to form a more comprehensive picture.

Traders who emphasise confluence are often looking for the convergence of various technical and fundamental factors, as this can provide a higher degree of confidence in their trading decisions.

For instance, a trader might see confluence when a key support level coincides with a Fibonacci retracement level and is supported by positive news catalysts. The presence of confluence can add an extra layer of assurance to a trader’s perspective and play a vital role in their overall trading strategy.

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Psychology at Play Another angle that significantly influences a trader’s perspective is something known as “recency bias.” This cognitive bias implies that recent events hold more sway in our minds than historical data. In other words, if something happened recently, we tend to give it more importance.

Traders influenced by recency bias might be more inclined to buy a cryptocurrency if its value has been on a steady ascent over the past few months, regardless of whether it’s genuinely overvalued. Recognising this bias is crucial to making informed decisions. Traders should base their actions on all available information, not just the most recent data points.

The Yin and Yang of Trading A trader’s risk profile represents another integral factor that can significantly influence their perspective. Some traders are inherently risk-averse, shying away from trades with a high potential for loss. In contrast, some risk-seeking traders embrace high-risk trades in hopes of securing substantial returns.

Risk and reward are interwoven in the world of crypto trading; you can’t have one without the other. This fundamental truth means traders with distinct risk profiles will naturally perceive the same crypto chart differently. A risk-averse trader might focus on potential loss, while a risk-seeking trader may spot the potential for gain, leading to divergent trading decisions.

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Emotional States in Crypto Trading Emotions are an inescapable part of human nature and significantly influence a trader’s perspective. Some traders become emotionally invested in their trades, while others maintain a more detached approach. I believe you should never trade while emotional, as this is where errors creep in.

Consider this scenario: an anxious trader may exit a trade prematurely, even when there’s profit potential. Conversely, a confident trader might hold onto a trade for too long, disregarding signs of a changing market. Emotions can be both helpful and detrimental, and traders should be mindful of how their emotional state influences their trading decisions.

Experience equals Wisdom - but does it really?

The experience level plays an important role in shaping a trader’s perspective. Novice traders are more prone to making errors, such as purchasing a cryptocurrency when it’s overpriced or selling when it’s underpriced. Occasionally, they will find a win through beginners’ luck, but it is usually short-lived, with multiple errors along the way.

In contrast, seasoned traders typically possess a more profound understanding of the market and are more likely to make profitable trades. Although even experienced traders are not infallible, their wealth of experience often leads to more informed perspectives.

In summation, myriad factors are at play in shaping a crypto trader’s perspective. Some of these factors, like recency bias and emotional states, lie beyond a trader’s control. However, others, such as risk profile and experience level, can be actively managed.

With age, we gain a profound understanding that differs significantly from our perspective when we were in our 20s, and this principle holds true for trading as well – experience matters. Just as you can’t simply walk off the street and instantly become a surgeon, traders should acknowledge that expertise in the financial markets is a product of time, learning, and adaptability.

It’s not uncommon for traders to experience a degree of overconfidence after a single successful trade, mistakenly believing they have cracked the trading code. In reality, mastering the intricate world of trading requires an ongoing commitment to learning, adapting to market changes, and gaining valuable experience over time. The wisdom and insights that come with years of trading cannot be substituted with a solitary stroke of luck.

Like life, Trading is a continuous learning process that matures with time and experience. Success in trading is not a one-time feat but rather an ongoing journey. Recognising the importance of continuous learning, understanding confluence in decision-making, and being mindful of the various factors that influence a trader’s perspective is essential for navigating the ever-changing financial markets - especially the highly volatile cryptocurrency market.

Whether you’re a novice or an experienced trader, remember that patience, humility, and a commitment to learning are your key assets on the road to trading success.

Now, get out there and give it a try!

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written

by Chris

Cold Wallets The Extra Layer of Crypto Security

There is a time when you have to think about security, and that time was when you took your journey with cryptocurrencies seriously. Well, I do hope you know your stuff already, and this article would be informative and educative for our fellow beginners.

image via Freepik.com

Cold (hardware) wallets have always been the best way to store crypto assets securely, from the early days of Bitcoin to the latest 2022 fiasco with the FTX, Celsius, and BLockfi collapses. Whoever was involved, I feel for you. The sad thing is that while these are well-known events, there are many instances where your crypto is not safe within a hot wallet or an exchange. But more on that later.

If you buy and sell crypto daily, maybe a cold wallet isn’t for you. If you are not a long-term holder and chase the big pump on your altcoin for some quick, juicy profits, maybe this is not for you.

But alas, imagine finding an early gem you want to buy. It goes up 10x (wishful thinking) in 10 days, and you want to sell. Suddenly, you click a phishing link you received from that project, or you are in a hurry and type the name of the exchange wrong. With one click on your hot wallet, POOF. Even if it never happened to you, it happens even to the best of us!

I like to believe that lessons are learned. A cold wallet can prevent all these, so let me share how.

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Cold vs Hot Wallets: The Differences Before we dive deeper, let’s draw a brief distinction between hot and cold wallets. If you read our previous article, with hot wallets, you need to be online. They are handy for fast and onthe-go transactions, and you can have mobile/desktop versions as well. But they come with their own set of vulnerabilities and security risks.

On the flip side, cold wallets do not require you to be online, so they are generally safer.

But what exactly sets these two apart?

image via Freepik.com

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Internet Connectivity: While a hot wallet is always online and ready for transactions, a cold wallet stays offline, offering a safety shield against cyber threats. ➢Tangibility: You can use a hot wallet on your phone, desktop or through a web portal. Cold wallets? They are tangible. Think of them as a physical wallet for your crypto, often in the form of paper or hardware devices.

Safety & Security: Hot wallets have a constant risk of hacks. Cold wallets, by being offline, inherently offer more security. ➢Accessibility & Usability: Hot wallets are your go-to for quick transactions, ideal for smaller amounts. Cold wallets?

Best suited for the long game – storing large amount of crypto you do not plan to move frequently.

So, back to our original question: why lean towards a cold wallet?

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Enhanced Security: An offline nature means reduced internet threats.

Ownership Control: Your private keys, your rules. No thirdparty dependencies.

Long-term Holding: For those looking to HODL, cold wallets are crucial.

As you can see, there are a lot of pros and cons, and one must think through the plan. It comes down to how you want to play the game and what kind of investor you are. I use the good of both worlds if you as me.

How do Cold Wallets Work?

At its core, a cold wallet is a blend of software and hardware features that work in tandem to protect your cryptocurrencies.

Unlike their hot counterparts, which require an internet connection, cold wallets stay offline. This combination ensures transactions are signed offline, mitigating the risk of potential thefts.

The Technology Behind Cold Wallets At its essence, a cold wallet is a combination of software and hardware components, that work in harmony to safeguard your cryptocurrencies. Unlike their hot counterparts that require internet connectivity to function, cold wallets remain entirely offline. This hardware-software blend ensures transactions are signed offline, neglecting any potential thefts.

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Understanding Private Keys and Public Addresses Every crypto wallet has a public address - it’s like your email address to receive funds. Others can see it, and there is no harm in sharing it. But the private key? Think of it as the password to that email. In crypto, this password allows you access to your digital assets, making it imperative to keep it confidential.

Cold wallets store this private key offline, ensuring no hacker can access it without the physical device.

Your public address is shared for transactions, but the private key remains securely stored in your wallet, only used to authorise transactions.

The Process of Transactions Using Cold Wallets So, you want to make a transaction using your cold wallet:

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➢Initiation: You start by starting the transaction on an online platform/exchange, be it a computer or mobile interface. It creates what is called an unsigned transaction. ➢Offline Signing: You transfer this to your cold wallet, typically via QR code or other secure methods.

Your cold wallet then signs this transaction offline using your private key.

Completion Online: Once signed, the transaction is transferred to the online interface and broadcast to the blockchain network. It’s crucial to note that at no point does your private key get exposed to an online environment during this process.

Cold wallets offer a robust security protocol by keeping the most crucial element, the private key, inaccessible to potential online threats. While the process may seem a tad more time-consuming than simply clicking a button on a hot wallet, the peace of mind and level of security it offers is unparalleled. If security is your topmost priority, navigating these few extra steps is a small price to pay. And it only takes 1-2 minutes, if you familiarise yourself with the process.

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Top 5 Best Hardware Wallets Storing your crypto is not just about safety; it’s about peace of mind. And while there’s a variety of hardware wallets out there, choosing the best one can sometimes feel overwhelming. To ease your decision-making process, we’ve spotlighted the top 5 in the market, focusing on factors such as security, coin compatibility, price, and more. And a quick PSA: always buy directly from the manufacturer to avoid potential scams!

With that said, let’s dive into our first recommendation.

Trezor Model T: The Best All Rounder Overview: This product comes from the renowed Satoshi Labs, the Prague-based pioneers behind the Trezor brand, which launched its first crypto hard wallet back in 2013.

It is one of the most used and bought cold wallets, and for a good reason. Its small size, top-notch security and relatively affordable price tag make this the best all-rounder on our list.

Features & Benefits:

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➢Security: The wallet has undergone third-party audits, and since its inception, no successful hacks have resulted in the loss of user funds. It is one of the safest wallets so far.

Coin Support: It supports 1,000+ crypto assets, catering to mainstream coins and lesserknown altcoins. A detailed list of supported coins is available on Trezor Asset Support page.

User Interface: It has a color touch screen, eliminating the need for external button shuffling and making operations more intuitive than its competitors or even its sibling, the Trezor One. ➢Integration: Its compatibility extends even beyond the product itself. It can be used with the online Trezor web wallet, the downloaded Trezor suite app, and even integrates with hot wallets like Metamask. ➢Price: The Model T is priced at $219. While it is pricier than other hardware wallets, it offers larger coin support if you hold many assets. ➢Compatibility: It operates seamlessly with major computer OSs such as Windows, Mac, Linux, and Android.

Trezor Model T, image via Trezor website User Feedback: Setting up the Model T is a breeze, with most users finding the process efficient and user-centric. However, while it’s a premium offering, some argue its value proposition when compared to the Trezor One, which is cheaper at $65.

Nevertheless, for those prioritising asset support and touch screen features, the Model T is a perfect fit.

Trust Factor: Trezor’s transparency shines through, as all the code for their wallets is publicly available and open source, building an even stronger trust factor for investors and potential users.

Visit Trezor

Ledger Nano X: Bluetooth Connectivity at its Best Overview: The Ledger Nano X claims the second spot on our list, proving itself as the best hardware wallet that boasts Bluetooth functionality. Brought to you by Ledger, a France-based company, this model is an upgraded version of the popular Nano S. Although Ledger has solidified its standing as a top-tier hardware wallet provider, there have been some notable bumps along the road.

Features & Benefits:

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Security: It Incorporates a CC EAL5+ certified secure element chip, Ledger assures an unparalleled security standard. Till now, there haven’t been any reported vulnerabilities or successful hacks on the wallets.

Coin Support: The Nano X supports an extensive range of over 5,500 cryptocurrencies. However, one should note that only up to 100 apps (coins) can be held at once, setting it apart from the old Nano S which restricts you to three to six apps but still might be a good choice if you hold specific digital assets.

User Interface: Beyond the traditional, the Nano X offers Bluetooth connectivity and a slightly larger screen. Also, by leveraging the Ledger Live software, users can effortlessly navigate their assets on both desktop and mobile.

Compatibility: It can be used with Windows, Mac, Linux, iOS, and Android. Its broad compatibility extends to Web3 wallet integrations, including MetaMask, opening doors to interact with DeFi much easier.

Price: At $149. Still cheaper than its Trezor competitor, but still sits at the higher end of the spectrum. But for those on a budget, the Nano S Plus ($69) offers viable alternatives without compromising on security.

Visit Ledger

Ledger Nano X, image via Ledger website

User Feedback: Recent years have seen Ledger embroiled in controversy. Most lately in 2023, the proposed ‘’Ledger Recover’’ system became a hot topic. The concept of backing up user seed phrases, coupled with an ID verification process, was met with widespread criticism from the crypto community. This move, seen by many as a deviation from decentralisation’s foundational principles, caused a significant number of users to abandon Ledger products.

Additionally, a mid-2020 data breach compromised the personal details of 272,000 customers. While no crypto assets were lost, the breach resulted in phishing attempts, further denting Ledger’s reputation. For those keen to read further, visit Ledger’s response to the data breach here.

Trust Factor: Despite the setbacks, Ledger’s commitment to providing top-notch hardware wallets remains unwavering. The Ledger Nano X stands as a testament to the company’s dedication.

BC Vault: Your Best (Long-Term Storage) Friend Overview: BC Vault stands out as a pinnacle of security, especially for long-term storage. Portraying itself as more than just a wallet, it’s a vault with a catchy motto: ‘’Wallets are for Pocket Money, Vaults are for Safekeeping.’’ BC Vault ensures that they’re investing in top-tier security.

Features & Benefits:

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Coin & Token Support: BC Vault outshines many of its competitors, offering support for millions of coins & tokens. You can manage up to 2,000 unique wallet addresses spanning across hundreds of chains, a feat that even industry giants like Ledger and Trezor can’t match.

Seedless Cold Storage: Moving away from the conventional, BC Vault introduces a recovery method free of third-party trust. It’s deemed more secure than the traditional recovery phrases, however, they do offer optional recovery phrases for those who prefer it.

Design: The device comes integrated with a Ferroelectric RAM (FeRAM) chip that boasts a lifespan of over 200 years.

Key Generation: BC Vault ensures the private keys are user-generated. This amplifies security and ensures ultimate anonymity.

Security: Backed by a seasoned cybersecurity firm with over 20 years in the industry, the brains behind BC Vault are well-versed in ensuring top-notch security.

Price: With a price tag of $138, the BC Vault tackles the competition head on. If you are serious about holding long term, this cold wallet is for you.

image via BC Vault website

User Feedback: Users have consistently highlighted the device’s robust security features, especially the encrypted SD card backup method.

This encryption ensures that funds remain inaccessible without the user’s unique pin and password combination. This level of security is a significant step above the typical paper recovery seed phrases.

Trust Factor: The trust in BC Vault’s security is so profound that the company has a unique challenge.

Each device comes with a pre-loaded account containing 1 Bitcoin. If someone can crack the device’s security, they win the Bitcoin. As of now, every Bitcoin remain untouched. Will you be the one who cracks it?

Visit BC Vault

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ELLIPAL Titan: Your DeFi Cold Wallet Overview: Impressive features tailored for DApps and DeFi in general, is the Ellipal Titan. Standing strong in the hardware wallet market, the Titan employs an airgapped method, assuring absolute offline cold storage.

Though its $169 price tag seems a bit overpriced to some competitors, its value proposition might just justify the expenditure for many.

Quick note: Its regularly on sale at $139, so be sure to check that. image via Ellipal

Features & Benefits:

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Physical and Network Security: The Titan is designed to remain entirely offline, completely eliminating network-related vulnerabilities.

QR codes must be used exclusively for data transfer, ensuring it remains insulated from potential risks associated with USB, Wi-Fi, or Bluetooth connections.

Asset Support: Surpassing all others on this list, the Titan supports a staggering 46 blockchains and over 10,000 crypto assets.

DApps, DeFi, and More: Not just a storage device. Think of it as your gateway in DeFi. From staking assets to swapping your crypto and interact with lending/borrowing protocols and much more; everything’s achievable via its mobile app.

Anti-Tamper Technology: The Ellipal Titan is dust and waterproof and it’s fortified with an anti-tamper mechanism. An unauthorised attempt to breach its physical security would trigger the deletion of all private keys.

Price: At $169 ($139 at the time of writing). The entire list of coins is accessible on the Ellipal Coin Support page.

Visit Ellipal

User Feedback: The Ellipal Titan has a few potential drawbacks: • ➢Bitcoin Address Issues: The default Bitcoin address adheres to the BIP 44 protocol, leading to addresses that start with the number 3, as opposed to the widely accepted BIP 84 addresses that commence with “bc”. This discrepancy might render Bitcoin transactions pricier for some.

• Seed Phrase Concerns: Perfectionists might moan the 12-word seed phrase, though it’s worth noting that a 24-word variant can be imported. Furthermore, the lack of support for testnet coins and the inability to add a custom RPC might deter those looking to experiment with testnets or other network functionalities.

Despite these cons, my personal experience with the Titan in the past has been nothing but positive, especially its seamless app interface. The wallet offers the convenience of a software wallet combined with the security of a hardware one.

Trust Factor: In the quest to provide unmatched utility to its users, Ellipal Titan has secured a solid reputation throughout the years, particularly for those keen on interacting with DeFi.

NGRAVE Zero: The Most Secure Hardware Wallet Overview: Emerging as a game-changer in the realm of crypto hardware wallets is the NGRAVE Zero, labelled as the most secure wallet ever created. Not only does this claim resonate among users, but it has also piqued the interest of noteworthy investors like Woodstock Fund and Morning Star Ventures.

Features & Benefits:

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➢Security: The Zero operates on a 100% airgapped mechanism, setting a new security benchmark with its EAL7 certification (surpassing Ledger’s EAL5). It also meets the RoHS and CE standards, akin to the Trezor, but offers unmatched security with integrated features like a light sensor, biometric scanners, pin protection, and tamper-proof technology.

Let’s just say, the NGRAVE Zero outshines every other cold wallet, at least from a security standpoint. ➢User Experience: Contrary to expectations, the wallet’s enhanced security hasn’t compromised its user-friendliness. Many find its UX/UI superior to popular competitors (including myself). ➢Build Quality: The Zero doesn’t cut corners in durability, boasting a military-grade metal casing that outclass the standard plastic designs flooding the market. ➢Private Key Security: Distinctively, the Zero doesn’t ship with pre-installed private keys.

This provision allows you to randomise keys during the setup. ➢Price and Supported Assets: At $398, and 15 supported coins, you might find it discouraging to get one. But if you are serious about security, you should definitely consider it.

image via NGRAVE website

User Feedback: NGRAVE’s commitment to security and innovation is evident through its partnerships with institutions like the Interuniversity Microelectronics Centre (IMEC) and the Computer Security and Industrial Cryptography (COSIC). Yet, it’s their collaboration with a renowned cryptographer, Jean-Jacques Quisquater, that steals the spotlight.

Mr. Quisquater, a name in cryptography that we can’t forget since he was cited in Satoshi’s original Bitcoin Whitepaper, worked handin-hand with NGRAVE to craft the perfect wallet.

Trust Factor: There are multiple features and innovations packed into the NGRAVE Zero that simply can’t be covered in a brief overview. This wallet could very well represent the future of crypto storage, especially with its cryptographic security features. Its only limiting factor for now, is the price tag that deter most retail investors, but hopefully that can change in the future.

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image via Freepik.com

Tips for Maximising Cold Wallet Security Hardwallet wallets offer the best security when it comes to storing and interacting with your cryptocurrencies. But you need to be aware at very careful on how you approach this:

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➢Keep them SAFE: All wallets come with PIN codes and recovery options. This information should be your closely guarded secret, shielded from everyone. Disclosing these details jeopardises the safety of your wallet and ultimately, your digital assets.

Update Regularly: Just like any other tech product, wallet software isn’t immune to vulnerabilities.

Manufacturers frequently release updates to patch any potential security loopholes. Stay updated and informed. ➢Hidden Wallet Feature: Many cold wallets offer hidden wallets - a feature where additional wallets can be set up on your device, known only to you. It can be tricky to use, and forgetting the passcode might lock you out forever. Use it cautiously. ➢Maintain Discretion: It might be tempting to flaunt your cryptocurrency achievements, but discretion is advisable. The less people know about your investments, the safer you are from potential threats.

Remember, knowledge about your crypto holdings might make you a target.

Physical Security: Cold wallets are immune to online hacks, but they’re susceptible to physical threats. If someone manages to get both you and your wallet, they might force you to give sensitive details. To mitigate this risk, consider storing your wallet in a safe spot.

Research Before Trusting: While industry veterans like Trezor and Ledger have stood the test of time, new entrants constantly innovate. However, a thorough personal research before committing funds to any wallet is imperative.

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Final Thoughts: The Evolution of Crypto Security In my opinion and personal experience, cold wallets are essentially if you deal with cryptocurrencies. The constant tug-ofwar between hackers and security experts underscores the vitality of protective measures.

While technological advancements continuously offer enhanced protection, the onus of security, in many ways, rests on us, the individual user. Being proactive, vigilant, and discreet are some great principles to secure your digital assets.

So embrace them, and you’ll not only protect your investments but also contribute to the broader goal of a safer crypto ecosystem.

Challenges Around Mental Health & Crypto written by Samantha Jimenez

Dreams of immediate wealth collide with the demons of volatility and obsession when a lot of people think cryptocurrency and Bitcoin, but beyond the price charts and promises of astronomical gains lies a complex and underestimated reality: cryptocurrencies challenge the financial markets but also the mental health of those who venture into this digital realm.

The idea of making easy money leads many to make wrong decisions, forgetting that to invest in crypto, they need to do some research and not rush into it because someone else made a few million (by luck!). You should seek expert advice and do a lot of research.

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With this in consideration let’s examine together how cryptocurrency volatility can trigger an emotional rollercoaster, how obsession with constant trading can affect the quality of sleep and personal relationships, how scammers lurk in the shadows, waiting for their next victim, and how FOMO (fear of missing out) can lead to impulsive decisions with often heartbreaking consequences.

As we delve into these topics, we will also explore the impact on mental health through real stories and research findings.

How do cryptocurrencies affect mental health?

The volatility roller coaster that goes from euphoria to despair.

News agencies constantly report on cryptocurrencies price swings that rival the most intense roller coasters. The euphoria of seeing quick real-time gains turns to despair when values plummet. This emotional cycle can wear investors’ mental health, driving them to anxiety and stress.

And that’s because it has its dark side. Just as quickly as prices can skyrocket, they can also collapse, so investors can see their gains evaporate in minutes, which triggers extreme anxiety and despair. The feeling of watching your investment plummet is overwhelming and often leads to sleepless nights as investors remain fixated on price charts, hoping for a miracle.

The other day, I read an article where an investor said that “cryptocurrencies are like entering Hades domain,” and analyzing it, I noticed he is not wrong, given that extreme volatility can bring out our darkest parts, especially for those with addictive personalities, this is where emotional decisionmaking plays a key role.

Investors who get swept up in euphoria can make impulsive decisions, such as buying more assets when prices are peaking, often resulting in significant losses.

Incessant trading and obsession when the market never sleeps On the other hand, cryptocurrency trading is a game that never stops. Markets operate 24/7, exposing investors to price fluctuations constantly.

This non-stop nature of trading can lead to constant obsession.

Therapist have revealed that cases of insomnia, addiction, and depression have skyrocketed among those who are trading cryptos. According to addiction scholars, this obsession shares striking similarities with gambling addiction.

The voice of the experts The thrill of intense action, rapid change, and instant reward can lead to a dopamine release in the brain, reinforcing obsessive behavior. As a ScienceDirect study points out, obsession with cryptocurrency trading is a phenomenon that deserves attention.

The research reveals that those involved in cryptocurrency trading are more likely to develop excessive behavior than traditional investors.

This behavior includes gambling overuse, online gaming and the Internet, underscoring the intensity of the experience.

As a result, trading obsession can lead to sleepless nights as traders constantly check their trading apps to see how their investments are performing.

As Aaron Sternlicht, a New York therapist who has seen an increase in people seeking help for cryptocurrency addiction, warns, “Constant trading can turn nights into sleepless nights and tear personal relationships apart.” The constant need to stay on top of market fluctuations can consume the lives of those who immerse themselves in this uncertain world.

However, some investors have turned to practices such as meditation, exercise, and periodic disconnection from screens to combat this obsession. Setting time limits for trading and seeking emotional support can also be beneficial.

Scammers in the crypto world: Despair, Anger and Self-blame Another challenge facing our mental health within this ecosystem is despair, anger, and often even a sense of self-blame. Consider that many investors in this market have fallen into the hands of scammers and malicious individuals due to the lack of regulation in this space and the relative newness of cryptocurrencies, creating a perfect breeding ground for those looking to take advantage of less experienced investors.

The aforementioned is where scams can take different forms, from bogus investment projects to Ponzi schemes disguised as “get rich quick” opportunities. These scammers often promise astronomical returns with little or no basis in reality, and lure their victims by promising easy profits, and this is where we can’t forget a principle that I often remember when I run into these situations in the market: “Too good to be true.”

A report by Blockchain TRM Labs reveals that Ponzi or pyramid schemes paid at least $7.8 billion, $1.5 billion spent on dark web marketplaces specializing in illegal drugs, adding $3.7 billion stolen through hacks and exploits.

Cryptocurrency Ponzi Schemes Cost Victims $7800M in 2022 Source: TRM

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The lack of regulation and oversight in the cryptocurrency market complicates the tracking and prosecuting of fraudsters, giving these criminals a sense of impunity. As a result, many people have lost large sums of money in fraudulent schemes, impacting their financial health and mental well-being.

Source: TRM. Criminal activities that can generate income in cryptocurrencies

The collapse of cryptocurrency prices has not deterred fraudsters, and they have adapted to new market realities. In 2022, cross-chain bridging attacks, which allow moving cryptocurrencies from one blockchain to another, resulted in an approximately $2 billion theft. Criminals increasingly rely on chain hopping, or the movement of funds across multiple blockchain networks, as part of their money laundering strategies to conceal the source and destination of illicitly obtained proceeds.

Rutgers University has identified a link between cryptocurrency trading and increased psychological distress. People who have fallen for cryptocurrency scams or have lost meaningful amounts of money due to these deceptive practices often experience significantly higher stress and anxiety.

For this reason, cryptocurrency investors and enthusiasts must be cautious and realistic. The lack of regulation means that the responsibility to research and make informed decisions falls on the investor’s shoulders, given that education and awareness are the best defenses against scams in this digital world.

FOMO, or the fear of missing out Another bad practice to avoid is falling into “FOMO,” or the “fear of missing out,” which is a common phenomenon in the world of cryptocurrencies where the constantly changing environment often leads to a sense of urgency among investors out of concern that, if they do not act immediately, they will miss out on lucrative opportunities.

Watch out because FOMO is not an isolated sentiment but an inherent part of cryptocurrency investing. From the rise of Bitcoin to ICOs to altcoins, we have witnessed how the fear of missing out has manifested over time. Investors often face pressure to follow trends.

Let’s review three milestones on this side of history To understand and refresh our memory.

The FOMO Monster Awakens To remember that 2017 frenzy when the Bitcoin price reached its all-time high of nearly $20,000 is to relive the reign of FOMO, with investors from all corners fighting for a piece of the pie. Some won big, but others were caught in a psychological trap, unable to resist the pressure of a boiling market.

Examples abound, from students taking out loans to invest to professionals mortgaging their homes in search of quick riches.

But as therapists warn, sleepless nights and shattered relationships often accompany such obsessive pursuit of profit. In the end, FOMO left scars, both financial and emotional.

Source: Crypto.com Bitcoin price peaks throughout history

The rise of ICOs and the bubble Another example of FOMO was the rise of Initial Coin Offerings (ICOs), where the new cryptocurrencies launched promising to be “the next Bitcoin.” In 2017, these ICOs raised more than $6 billion. And FOMO played its part when investors feared they were missing out on the next opportunity.

However, as the boom in ICOs demonstrated, the cryptocurrency market is prone to spectacular bubbles. Prices would rise exponentially, fueled by FOMO, only to collapse hard. For some, this cycle became unbearable.

The lure of NFTs and fleeting opportunities Over time, the crypto market evolved. Non-fungible tokens (NFTs) became the new sensation. NFTs represented ownership of digital art, viral videos, or even tweets. The ability to buy and sell snippets of culture online attracted crowds of investors.

Again, FOMO came into play, with investors fearing to miss out on the opportunity to own the next viral NFT, and prices went through the roof. But, as always, some discovered they had paid fortunes for digital pixels that soon lost their luster.

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Beeple, Everydays: The First 5000 Days sold for a staggering $69.3 million.

After the collapse of 2022, the cryptocurrency market rebounded in 2023, and the FOMO juggernaut returned with it. Despite the ups and downs, the lure of quick profits remains a temptation that is hard to resist. But how, then, do we deal with the FOMO monster? Here are some strategies backed by data and therapists: 1. Education and awareness: Understanding the risks and volatility of the cryptocurrency market is crucial. Education can help investors make more informed and less impulsive decisions.

2. Portfolio diversification: Don’t put all your eggs in one basket. Diversifying investments reduces the risk of losing it all in one fell swoop.

3. Set limits: Setting limits on the amount of money you are willing to invest and the time to spend trading can help control FOMO.

How could cryptocurrencies be beneficial for mental health if used correctly?

In this sector, not everything is related to risks; benefits have also significantly marked many people. Cryptocurrencies can bring with them

a sense of renewal and optimism in financial investors, since they have often become a source of empowerment, financial independence and stability that have been tools for those who have been able to use them to improve their lives. For this reason there is a positive outlook in which cryptocurrencies can provide significant benefits if used responsibly and with caution. Let’s take a look at some of them: Financial empowerment: Cryptocurrencies became a beacon of hope for those who had felt the overwhelming weight of dependence on financial intermediaries.

Cryptocurrency ownership allows individuals to have greater control over their financial assets without relying on intermediaries such as banks, especially in countries such as Venezuela and Zimbabwe where hyperinflation and problems with the banking system exist.

As Saifedean Ammous points out in his work “The Bitcoin Standard,” “In economies with high inflation or depreciating currencies, cryptocurrencies like Bitcoin offer a way to escape the erosion of purchasing power and a hedge against local currency devaluation.”

These words encapsulate the appeal of cryptos in unstable economic environments, where they provide a beacon of hope by allowing people to protect their financial assets.

Andreas M. Antonopoulos, in his book “Mastering Bitcoin,” reinforces this concept by stating that “Cryptocurrencies are not only a form of digital money, but also an empowerment mechanism that allows people to control their wealth in an unprecedented way. By eliminating the need for intermediaries, they offer a vision of a more inclusive and accessible financial world.”

Furthermore, according to a World Bank “World Development Report 2020” report, digital financial services, such as cryptocurrencies, can reduce financial anxiety and provide a sense of economic independence.

Access to financial services: In a remote corner of the world, where bank branches had not yet arrived, cryptocurrencies became a beacon of hope. Cryptocurrencies can offer access to financial services to unbanked or underserved people worldwide. A survey of people on all seven continents conducted by Consensys suggests that Nigeria is the most cryptocurrency-savvycountry in the world.

Also, a study by the University of Cambridge showed that cryptocurrency adoption has enabled millions of people in developing countries to access financial services, which can improve mental health by providing previously inaccessible economic opportunities.

Long-term investment in cryptocurrencies has proven profitable for many who ventured beyond the present, envisioning a financial future through investment. According to a report by cryptocurrency analytics firm CoinMetrics, those who have held long-term investments in Bitcoin have experienced significant gains over the years, thus improving mental health by providing financial stability and reducing financial stress.

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Financial literacy: For its part, participating in the world of cryptocurrencies can promote financial literacy. Online educational resources, such as Stanford University’s courses on cryptocurrency and cryptocurrencies, have proven popular and useful for those seeking to understand this field.

Acquiring financial literacy can be intellectually stimulating and rewarding.

General views on mental health as an approach to the future of cryptocurrencies We have seen how innovation, speculation, and financial revolution converge in the cryptocurrency universe. However, in this exciting digital world, mental health is rarely considered. As cryptocurrencies consolidate their hold on society and emerge as an integral part of our financial lives, it is crucial to weigh their impact on our health and well-being.

The market itself is already notorious for its volatility. Prices can skyrocket or collapse in minutes, and investors get caught in a constant whirlwind of emotions like greed, fear, euphoria, and anxiety, being just some to experience on this journey, and ones that can certainly be exhausting and ultimately detrimental to our minds.

Greed, which can lead to impulsive decision-making and fear, which can paralyze investors, are two ends of the emotional spectrum that can leave people drained and emotionally unstable. In addition, the fear of losing money in the cryptocurrency market can be detrimental to those with anxiety issues. The possibility of financial loss can trigger panic attacks and constant worry.

But, despite this, there is one thing that should be clear: the cryptocurrency market is not necessarily the problem itself but rather how individuals interact with it and manage their emotions. Financial education and psychological counseling can be valuable tools for those venturing into this world.

In addition, online and offline communities of crypto enthusiasts are emerging to provide emotional support and share experiences. By talking openly and honestly about the challenges of maintaining sound mental health, a supportive environment can be fostered that mitigates some of the emotional risks associated with this market.

So, I reiterate that it is crucial to acknowledge both the positives and negatives and encourage a balanced approach towards the role of this sector in our lives without falling into the crypto addiction that can lead us into problems such as lying, stealing, going into debt and having difficulty relaxing or sleeping. If you are here, the journey continues, and you know that what the future holds is still a mystery, but as we navigate this financial journey, we must not lose sight of the horizon of sound mental health and balanced financial well-being.

Buying Crypto Without KYC: Is it Possible? written by Daniel Jimenez

I still remember spending my early days on Facebook, buying and selling Bitcoin for fiat currency through internal messaging in a few Bitcoin groups. We were nerds trying to create a marketplace out of nothing, even without knowing it, with unknown people connected on the other side of the screen, only motivated by the power of technology and the ability to transfer money directly between peers, without intermediaries, and without revealing our real identity. We felt like superheroes with infinite abilities, granted by the fascination of being able to transfer money between wallets as bytes and without custody.

While these were the early days of Bitcoin (BTC) for me, back in 2012, there is still the pleasurable feeling of the power of blockchain technology when we want to achieve exchanges this way. However, it must be said responsibly: the risks of exchanging without identification are enormous as cryptocurrencies become more popular, and mass adoption attracts malicious actors into the ecosystem who taint the process.

While the philosophy among Bitcoin enthusiasts has always been to obtain your money without mediators and to be sovereign of your assets, we have to understand that we are in a world where not everyone is honest and wants to transfer value without causing harm, hence that many cases in recent years have proven the importance of a balance between identification and anonymity for instances related to Bitcoin and cryptocurrencies in general.

What is KYC? KYC stands for “Know Your Customer,” a method used by regulators worldwide to determine and verify the identity of customers, especially on financial platforms. Its intention from its origin has been to prevent money laundering, fraud, and illicit activities related to money in all its forms.

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While buying cryptocurrencies is not illegal, there has always been a point of controversy between cryptocurrency users and regulators regarding the KYC requirement in the ever-evolving world of cryptocurrencies.

For many Bitcoin enthusiasts and cryptocurrency lovers, KYC undermines the libertarian principles advocated by decentralization and the myth of privacy surrounding cryptocurrencies. Remember that not all cryptocurrencies, such as Moreno (XMR), are anonymous and private.

The act of disclosing identification documents to third parties like crypto exchanges or government regulators, tends to be perceived by bitcoin enthusiasts as contradictory to the principles of financial autonomy established when first developing cryptocurrencies.

However, from the regulators’ perspective, the progress in adopting the KYC method represents a huge step in the transparency of digital money management, underlining the control power that competent authorities can have over cryptocurrencies on the road to their mass adoption.

While the volume of cryptocurrency transactions for illegal purposes has significantly decreased in 2023 compared to 2022 (with up to a 60% reduction according to the analysis firm Chainalysis), the rhetoric surrounding the use of cryptocurrencies for illegal activities continues to rise.

Buy Bitcoin without KYC: Is it possible?

The Bitcoin network protocol does not require users to share their data for transfer. It is some private platforms, under government pressure, that demand this type of documentation.

Despite these requirements, buying Bitcoin and other cryptocurrencies worldwide without identity verification is possible today.

From anonymous methods where it is possible to use cash to the semi-anonymous option of using digital payments with certain limitations, such as trade volume, purchasing assets without going through the KYC or verification process is feasible in the current industry.

Benefits of Buying Cryptocurrency without KYC

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Being aware of the possibility of buying Bitcoin and other cryptocurrencies without going through the KYC route, let’s recall some of the advantages and benefits of this purchasing method:

• • • • •

•

●It preserves the libertarian spirit that originated with the creation of Bitcoin. It keeps the principles of decentralization, trustlessness, and custody-free intact. ●It maintains the pseudonymous nature of cryptocurrencies and the privacy they can offer. ●This trading method does not require special documentation demanded by some centralized institutions because it does not have entry barriers. ●It promotes and encourages the development of projects focused on user privacy and anonymity in hostile environments where government control is excessive. ●It allows free access without discrimination based on race, religion, or nationality to the acquisition and use of money, especially in countries where traditional finance has a low penetration rate.

It provides immediate availability of your assets at any time.

Disadvantages of Buying Cryptocurrency without KYC As we’ve mentioned at the beginning of this post, there are clear disadvantages when buying cryptocurrencies or Bitcoin without undergoing the standard identity verification process (KYC) .

Among the most prominent, we must mention the inherent risks of trusting an unknown identity to transfer money or value, which can represent a significant failure point when using this methodology in the face of numerous malicious actors without using an escrow or similar safeguard.

On the other hand, we may be subjected, without consent, to more than just the loss of funds; there’s the potential for financing illicit activities that can be detrimental to both ourselves and third parties.

No less important, the possibility of scams and frauds will always be a concern, even if you take the risk of engaging in a personalized cryptocurrency exchange with unknown parties, possibly leading to physical harm, as seen in isolated cases worldwide, with the suspicious deaths of users holding a significant amount of bitcoins.

What Does KYC Mean for Cryptocurrency?

Implementing verification processes and requirements used by financial institutions for customer identification, such as the KYC process, has been a significant change that has allowed cryptocurrency adoption in recent years.

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Beyond the existing controversies between Bitcoin maximalists - or similar groups - and regulatory bodies regarding the ‘undermining’ of principles, the world we live in operates under a set of rules to which the industry needs to adapt to fulfil its mission to become the new accessible financial model for the masses.

Using decentralized exchanges and peer-to-peer trading will always remain alternatives for cryptocurrency trading. However, until we have a simplified user interface that allows less technically inclined individuals to enter the space, centralized platforms like crypto exchanges remain the most sensible option for enabling access to this new form of assets.

In this case, the use of KYC means for the industry: 1. Regulatory Compliance: As we’ve indicated, KYC has become crucial in the cryptocurrency industry for exchanges to gain legal acceptance in various countries.

2. With the KYC process, we have seen how the fight against financing illicit activities has made it possible to detect and combat them effectively in different regions. From the FBI to financial regulatory bodies in China, they have managed to identify malicious actors using cryptocurrency platforms to attempt money laundering from illicit activities.

3. The KYC process has improved the security of some platforms offering cryptocurrency buying, selling, and custody services.

Through customer identification, it is more challenging for malicious actors to use cryptocurrency-centered platforms to finance illicit activities.

4. One of the significant advancements brought by implementing KYC in various cryptocurrency-related platforms is undoubtedly the necessary legitimacy for integration with traditional finance, given that it was almost impossible to use prepaid cards with cryptocurrencies and payment gateways like PayPal without being subject to penalties or even banned accounts confiscation used for Bitcoin purchases in its early years.

Today, platforms offering cryptocurrency buying, selling, and custody services have implemented different payment methods due to the industry’s openness to implementing regulatory standards to ensure transparency when using user funds, such as KYC regulations.

Should You Buy Crypto Without KYC? You may be wondering whether you should buy cryptocurrencies like Bitcoin without KYC. While we do not intend to offer financial advice or influence users’ personal decisions, we believe that the ecosystem has diverse options that can meet everyone’s needs.

Unlike the traditional financial system, you can choose various options to acquire your cryptocurrencies, depending on what makes you feel more comfortable and secure, including from an ideological perspective.

I use different options depending on the circumstances, whether in travel, internet connectivity, fund availability, payment methods, etc. However, this doesn’t mean that my reality should necessarily be yours.

For this reason, please inform yourself and carefully study the options that best suit your needs in specific circumstances, according to the parameters to which you may be subject when considering a potential cryptocurrency transaction.

Remember that there are several options in the industry to purchase anonymous, private, or pseudonymous cryptocurrencies such as Bitcoin without undergoing the KYC process.

But please be vigilant and avoid falling for scams and traps that could pose a risk to your funds and your physical well-being.

The security considerations for trading without KYC are an extension of the precautions you should apply in any everyday transaction in and out of the cryptocurrency industry: Use secure connections, avoid dubious websites, do not act out of desperation, avoid meetings with strangers, do not share your private keys, and remember that if something seems too good to be true, it probably is.

The world of cryptocurrencies is fascinating, but it is also full of dangers not to be ignored, especially when trading anonymously and privately.

Why Should I Join a DAO? written by Chris

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Introduction Perhaps you have stumbled upon the term DAO and felt a bit puzzled. Join the club anon! When you hear Decentralised Autonomous Organisation, it might sound like complex business language, but at its heart, it is just a modern variation on how communities have always worked.

Think of a DAO as a global club where everyone gets a say, and no one leader is in charge. Instead of a traditional hierarchy, the reins of power are held collectively by multiple individuals (usually selected by other members of the DAO). DAOs are bound with blockchain technology and operate using smart contracts. To buy your way in, you need the corresponding governance token. This token isn’t just a fancy membership card; it grants them voting rights on pivotal decisions, from operation costs to treasury management. And the best part? All members often collaborate on platforms like Discord or Telegram, breaking down geographical barriers.

Echoing the democratic values of ancient Athens, DAOs offer a renewed spin on collective decisionmaking. With such revolutionary ideas at play, it’s worth pondering: is diving into a DAO the right move for you? Let’s find out!

What does a DAO do?

DAOs are dynamic, and their purpose can span from personal to grand visions that might redefine how businesses function. But what do they exactly do?

Every DAO is created with a mission in mind. While some could form around simple goals, others aim for a broader vision. For instance, remember the hype around ConstitutionDAO? It was an inspiring ensemble of enthusiasts who pooled together resources to bid on an original copy of the U.S. Constitution. Though they didn’t clinch the prize, the initiative showcased how DAOs can rally people around a shared passion or cause.

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A Nod to The Origins Dipping further into history, the concept of DAOs is not as new you might assume. The first DAO, aptly named ‘’The DAO’’, instatiated on 30th April 2016 and a team called Slock.it tried to create a pureDAO governed by smart contracts (with no human intervention). The aim was to connect real-world transactions with blockchain technology, avoiding the middleman. Their approach was somewhat reminiscent of crowdfunding platforms like Kickstarter. However, their USP was empowering investors with voting rights on how capital utilisation.

Their success was unprecedented, with fundraising feats that made headlines. Yet, their downfall was swift, victim to a hack of nearly $50 million, that drained a significant chunk of their treasury.

It is essential to understand that the term DAO has evolved. Today, DAOs are like an umbrella descriptor, encompassing decentralised entities functioning on shared governance principles.

Decentralised Structures in DAOs The interplay between a project’s founding team and its community is crucial. The heart and soul of a DAO are its governance and the implementation processes.

• •

➢Governance: Think of this as the brainwork. It’s where the members oversee changes, most often via voting mechanisms, whether on-chain or off-chain.

Implementation: This is where the decisions made in governance brought to life. Once a vote has passed certain paremeters, the voted result is executed through smart contract.

Just as no two companies are the same, no two DAOs are either. So, let’s categorise them into three main types: CoreDAOs • Control: Minimal to none by the team.

• Function: Heavily dependent on community involvement when considering changes.

• Characteristics: They usually have well-organised groups and clear routes for making changes.

GovDAOs • Control: Middle-ground. The team has a fair amount of say, but governance is set and often cannot be changed.

• Function: Changes are done using automated systems and team input.

• Characteristics: Often associated with vote-escrowed token models. An example to highlight this would be CurveDAO’s mechanism, which promotes long-term community commitment.

PseudoDAOs • Control: Majorly by the team.

• Function: Highly centralised with mutable governance.

• ➢Characteristics: These may not have much community involvement. Being a member of a pseudoDAO is not a bad thing either; it can be a stepping stone for projects before evolving.

To be completely honest with you, it’s a bit of a sliding scale. Projects might hop from one category to another as they mature and evolve. However, there is a word of caution here. Joining a DAO without a proper plan can be detrimental. A half-baked move towards pseudoDAOs just for the decentralisation badge can be devastating. Users look for genuine efforts, and hastily-formed structures can be seen as red flags.

There is nothing inherently wrong about starting as a pseudoDAO, but it’s essential to keep the endgame in mind: a more coherent, mature organisation. Being transparent and genuine in intentions can make all the difference.

GovDAOs, with their well-defined governance structures, have recently become quite influential. The voting systems aim to keep members engaged for the long haul. However, bundling economic incentives with governance has its pitfalls. It could reduce the number of decision-makers, raising the risks of unfair control and manipulation.

CoreDAOs are the closest representation of pure decentralisation we have so far. A primer example is MakerDAO, where the power truly lies with the community. The decision-making process promotes community-driven values, ensuring no one wields disproportionate voting power. CoreDAOs have challenges, like defining a clear vision or avoiding decisional bottlenecks. The path to efficient governance is still a hot topic, and the jury is out on the perfect formula.

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Benefits of Joining a DAO Democratic Decision Making In traditional companies, big decisions are reserved for CEOs or a small group of high-ranked individuals, without the need to inform the rest of the employees.

In contrast, DAOs champion the principle of democratic decision-making. This means every member has a say.

It’s not just about hierarchy or seniority; it’s about the collective will of the community.

The strength of this model lies in the intelligence it harnesses. Diverse perspectives and expertise come together to shape decisions, reducing biases and enhancing the quality of choices. Think of it this way: instead of one person trying to solve a puzzle, you have a whole team, each bringing their own piece to the table.

The result? A more comprehensive and inclusive solution.

Financial Benefits and Tokenomics Joining a DAO is not just about having a say in decisions, there are also financial incentives. As DAOs primarily operate in the crypto market and DeFi, members can reap potential rewards. The tokenomics play a pivotal role in this as well. Members might receive tokens as rewards for their participation, which could appreciate in value over time.

But it’s not just about hoarding tokens. Understanding tokenomics is crucial. How are rewards distributed?

What is the total supply? What is the value proposition?

These are just some of the questions you to ask yourself before investing in a DAO. Networking and Community Building Imagine being in a room (or in DAOs case, a discord server or a forum) filled with individuals with the same passion and vision. That is the essence of joining a DAO. It’s more than just ticking off tasks; connect with others and create meaningful networks.

By being active, you can come across unique opportunities or even get valuable advice from a seasoned member. In essense, being a member of a DAO, you are not just another name on their list; you are part of something bigger.

Spotlight on 3 Different DAOs

1. Friends With Benefits

Friends With Benefits, often abbreviated as FWB DAO, offers a unique blend of culture and creativity, tied into a token-gated community structure. The essence of FWB lies in its membership tiers.

For example, if you want the full FWB experience to become a global member, you have to hold 75 FWB tokens. For those seeking a bite, holding 5 FWB tokens makes you a local nember, opening the gates to specific privileges. The beauty of FWB is that it is not just about the token; it is about fostering a rich, vibrant community of creators and enthusiasts.

2. Developer DAO

Gaining popularity with a whopping 88k+ followers on X, Developer DAO stands tall as a beacon for web3 developers around the globe. Spearheaded by Nader Dabit, a name synonymous with excellence in developer relations, this DAO is a breeding ground for innovation.

Members do not just sit back; they actively engage. From joining specialised guilds, collaborating with new projects, to hopping onto weekly calls discussing the DAO’s trajectory, it’s a developing hub of constant activity. If coding in web3 excites you, Developer DAO is your tribe.

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3. TreasureDAO

For those that love gaming, Treasure is more than just another DAO. They are reimagining game publishing in a decentralised manner. It’s an ecosystem of games crafted by Treasure’s team and skilled game developers, and the thread that binds them all is the MAGIC token.

The community is a blend of smaller subgroups, all entangled with shared narratives, resources, and yes, more MAGIC. Last but not least, the infrastructure of TreasureDAO, is nothing short of revolutionary, providing the tools and economic frameworks to power the ecosystem and champion game developers.

Potential Pitfalls and How to Navigate Them Understand the Tech DAOs are as fascinating as they are complicated. For those of you taking your first steps, the technical aspects can appear to be quite complex. So before you plunge into this, take a moment to acquaint yourself with the foundational tech. There are numerous beginner-friendly resources available online.

Decision-making Paralysis Understanding the consensus mechanisms and the different constitutions within your chosen DAO becomes paramount here. Knowing how decisions are made, and what weight your voice carries, can help streamline processes and avoid undue stagnation.

Regulatory Uncertainty As groundbreaking as DAOs are, they are treading new waters, and the regulatory landscape has not fully adapted. This means that there might be instances where legal clarity is unclear. Staying abreast of any legal developments in the space is vital. Moreover, aligning with a DAO that prioritises transparency and adaptability will serve you even better.

Conclusion DAOs offer a fresh perspective on organisational structure and operation. By joining one, you are not just hopping onto a new project; you are actively participating in a revolution of governance, collaboration, and innovation. However, as with any venture, it is crucial to approach with knowledge, awareness, and an open mind. Which DAO awaits you anon?

Why Crypto Conferences Matter More Than Ever

written by Lisa N. Edwards

In an era where digital currencies have gained undeniable prominence, one might wonder why cryptocurrency conferences matter. These gatherings of blockchain enthusiasts, tech innovators, and financial experts are more critical than ever as they provide a unique platform to exchange ideas, chart the future of the crypto world, and foster collaboration among stakeholders. As the financial landscape continues to evolve, understanding the significance of crypto conferences is essential for anyone invested in the digital revolution.

The Gathering of Minds: Crypto conferences serve as a melting pot for a diverse array of individuals, from blockchain developers and crypto traders to legal experts and venture capitalists. They offer an opportunity for participants to connect, network, and learn from each other. In a space as dynamic as cryptocurrency, the cross-pollination of ideas is invaluable, leading to innovations that push the boundaries of the technology.

Education and Awareness: As the crypto landscape grows increasingly complex, conferences play a vital role in educating newcomers and veterans alike. The topics covered range from blockchain technology and security to regulatory developments and investment strategies. These events serve as educational hubs where attendees can gain insights from industry experts, keynote speakers, and panel discussions.

Spotlight on Innovation: Cryptocurrency conferences often feature presentations on the latest technological advancements and emerging trends. Attendees get firsthand exposure to groundbreaking projects and innovative startups. This exposure fuels investment opportunities, fostering the development of new solutions and products that can shape the future of finance and technology.

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Networking and Partnerships: The value of networking in the crypto world cannot be overstated. These conferences provide a unique opportunity for individuals to forge partnerships, seek out potential collaborators, or even find funding for their projects. In an industry that thrives on partnerships and cooperation, these gatherings are the breeding ground for fruitful connections.

Regulatory Insights: With regulatory bodies worldwide increasingly scrutinising the crypto space, conferences have become the battleground for discussions on compliance and legal issues.

Regulatory panels and presentations help participants navigate the evolving legal landscape, ensuring they stay on the right side of the law while innovating within the crypto space.

Investment Opportunities: For investors, crypto conferences are a treasure trove of information. Not only can attendees gain insights into the potential of different cryptocurrencies and projects, but they can also meet with project leaders and founders. This hands-on engagement can lead to investment opportunities that might not be available elsewhere.

While these are my opinions I’ve reached out to a few event organisors I know, for their opinions Adam Cee is the Operations Manager for the Australian Crypto Convention https://auscryptocon.com/

“Crypto conferences are vital now more than ever because they shift the spotlight away from just Bitcoin’s price to the bigger picture. These industry events demonstrate that the crypto world is about much more than bear markets; it’s a breeding ground for innovation, solving tangible problems through blockchain and decentralization.

Attending these industry events, especially during bear markets, provides unique educational and networking opportunities. It’s a reminder that the crypto ecosystem is thriving beyond just financial charts. Now is the best time to get involved. By connecting with like-minded individuals and experts in the field, you’re not just preparing for the next bull run; you’re still in the “early days” of a transformative industry.”

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I asked good friend, Erhan Korhaliller - Founder and CEO and Organizer of Istanbul Blockchain Week - http://istanbulblockchainweek.com for his opinion, and it definitely had echoes of a similar opinion.

“In the midst of a prolonged bear market, crypto conferences play a critical role in the web3 industry to bring together passionate builders , comitted investors and hardened enthuasiasts to collaborate and push forward with new ideas that can be the catalyst for the next bull market.

The key players in the industry right now are much more accessible and open to hearing your ideas compared to when the market is ripping all time highs. They provide a great opportunity to get ahead in the industry and build strong relationships before the bull market crowd come in and the crazyness occurs.

By participating in crypto conferences today, despite poor market conditions, its a goldmine opportunity for investors, project founders and web3 market participants and that opportunity should not be underestimated.”

Erhan can also be found at

http://eakdigital.com

A Global Stage: Cryptocurrency conferences aren’t limited to any one geographical location.

From major hubs like New York, San Francisco, and Singapore to more exotic destinations, these events are held worldwide, allowing the global crypto community to come together. This international reach fosters a sense of unity and shared purpose among participants from diverse backgrounds.

With rapid technology changes, cryptocurrency conferences provide an indispensable platform for industry players to stay informed, collaborate, and drive innovation. They matter because they shape the future of digital finance and the blockchain landscape. Whether you are a seasoned investor, a curious newcomer, or a technology enthusiast, attending a cryptocurrency conference is an opportunity to immerse yourself in the heart of the crypto revolution. As the industry continues to evolve, staying informed and connected is key, and these conferences are the place to make it happen.

See you at the Australian Crypto Conference 11th, 12th November We have 5 GA Passes to give away - enter “EdwardsFREE” at the checkout

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Understanding ERC 4626: A Comprehensive Guide for Crypto Investors writtten by Daniel Jimenez

The technological revolution has led to creative solutions to overcome any challenges in the decentralised finance (DeFi) growing ecosystem, and such notable development has been the introduction of the ERC4626 Vault Token Standard, which has changed how we interact with tokenized vaults and, of course, cryptocurrencies. But what exactly do we know about it?

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What is the ERC-4626 Vault Token Standard?

The ERC-4626 Vault Token Standard is an Ethereum Improvement Proposal (EIP) that seeks to change how we approach tokenized vaults in the DeFi world. Created by a team of developers led by visionary Joey Santoro, founder of Fei Protocol, this standard has received a warm reception in the crypto community due to its ability to optimize and unify the technical parameters of performance vaults.

Let’s imagine that in the world of cryptocurrencies, each DeFi project has its way of creating tokens that reward users. Previously, there was no standard way to do this, and that caused problems. That’s when Ethereum Improvement Proposal (EIP) number 4626 arrived on December 22nd.

This proposal in question introduced the ERC-4626 token, the standard Vault token, making it easier and more secure to create reward assets on DeFi. This token benefits not only DeFi users but also developers, allowing developers not to waste so much time and money writing new code. In other words, it’s like using a shared “recipe”.

How do performance vaults work?

These vaults are like a “smart drawer” in the cryptocurrency world. You can put your tokens in that drawer and get a special token, which is not just a receipt but a magic card that gives you rights to the growth of that drawer.

When you deposit these tokens in the vault, they mix with other users’ tokens and move around looking for opportunities to earn more money. It’s like your money journeys to find the best deals and earn more. The vault constantly checks where it can get the best return for them.

So, what started as a way to make vaults is changing the whole game at DeFi. Since its approval in March, many projects have adopted ERC4626 in their vaults.

Understanding ERC-4626 Now, before we dive in further, let’s do a brief flashback to understand the present. Over the past few years, decentralised finance (DeFi) has seen tremendous growth, with a total locked-in value approaching $41,581 billion, according to data from DeFi Llama.

Source: DeFi Llama

This growth popularized a practice called “yield farming,” where users deposited funds into protocols such as Compound and then rewarded them as their deposits generated returns, much like interest in a traditional bank.

However, yield farming was not easily accessible to users without considerable capital or a deep understanding of the concept, leading to the creation of “yield aggregators,” which, in essence, are sets of smart contracts charged with managing and optimizing yields. These aggregators soon became known as “vaults.”

These vaults lacked an implementation standard, which led to complications. Performance aggregators, vaults, loan markets, and native performance tokens were often implemented with slight variations, making it difficult to build applications on top of these vaults and increasing the risk of security vulnerabilities. In addition, scalability was an ever-present problem.

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Why did ERC-4626 come about?

It was in the midst of this problem that the idea of ERC-4626 was born; Joey Santoro and his team presented the proposal for improving Ethereum, which is nothing more than the rules of a game, and without them, there would be no consensus and no clarity on how to make Ethereum work better.

In light of this, the proposal had a clear and set focus: to establish a common standard for creating reward assets in the DeFi ecosystem, making ERC-4626 a “recipe” that everyone could follow to generate reward tokens while providing security.

With this proposal, some heated debates on open-source development platforms such as Github, as well as on social media, arose around the issue, even when the community was supportive of the initiative, and after multiple rounds of review and deliberation, Ethereum finally approved the ERC-4626 standard in March 2022, marking an important milestone in the decentralised finance world. Since then, we saw how several protocols started using ERC-4626 in their vaults, like Yearn Finance, for example.

Advantages of ERC-4626 and why protocols use it Since the implementation of the ERC-4626 Standard, the DeFi world has gotten some attention, given that it allows developers to access specific details of performancegenerating tokens through an API, reducing integration and application creation. In addition, ERC-4626 has a kind of security guarantee for other cryptocurrencies involved in the vaulting process, thus enhancing the security of DeFi investments.

Along with enhanced security and the ease of creating interfaces, the ERC-4626 token has attractive advantages that lead to adoption by DeFi protocols.

For example, the standardization of tokenized vaults has eliminated the need to create custom adapters, which accelerates development and promotes interoperability in the DeFi ecosystem, not only reduces costs but also risks, as developers no longer need custom audits for each adapter.

With its efficiency, we see more and more clearly why so many DeFi projects have adopted the ERC-4626 standard, meaning that DeFi projects can better manage

reservations and rewards, which translates into more attractive user rewards.

It also brings standardization. When everyone follows the same recipe, it’s easier for different DeFi projects to work together and understand each other, and the ERC-4626 tokens can work smoothly across multiple applications and platforms.

Last, its adoption has spread widely among influential projects, like Yearn Finance, which became the first platform to support this adoption and publicly encouraged more projects to do the same and rely on the ERC-4626 standard. Its growing popularity shows how valuable it is and how much it contributes to the DeFi world’s growth.

Protocol integration with ERC 4626 Yearn Finance Yearn is like a money-making expert in the world expert. There, individuals, businesses, and communities can put their digital money in special pools called “vaults” and earn extra money. These vaults make it easier and more automatic to earn money and move money when opportunities arise.

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The thing is that Yearn V3 uses ERC-4626 for its vaults, which means that it can get that money from one place to another as if it were a kind of pipeline for digital money.

Balancer Balancer, meanwhile, is like an assistant for your cryptocurrency investments. It does many things, like helping you exchange digital currencies in a decentralised way and automatically managing your investments.

To do all this, Balancer uses ERC-4626 in what they call “linear clusters”. These linear groups are like special boxes that allow you to exchange two types of digital currencies at an exchange rate calculated in a very straightforward way.

With ERC-4626, Balancer can create these linear groups using virtually any digital currency compatible. You can then use these linear groups to build other groups, almost like investment superheroes, called “Phantom Stable group” and “boosted group.” You can combine them with other platforms, such as Aave, that allow you to lend and borrow digital currencies.

Sommelier A sommelier is like a financial expert working with cryptocurrencies. They use a unique system called Cosmos SDK with a bridge that connects Ethereum in both directions, like an “assistant” that helps Ethereum to do some tasks more effectively.

The Sommelier team has created the “ERC-4626 dynamic vault,” a “magic box” that automatically adapts and changes lending strategies so that you always get the best possible profit when using stable currencies in Aave. Think of it as an expert who always chooses the best strategy for you.

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ERC-4626 on Polygon and mStable: Improving DeFi Now, in the case of Polygon, a network noted for its scalability and efficiency, the adoption of ERC-4626 is especially exciting. It means that DeFi applications operating on Polygon, such as mStable, can run more efficiently and offer better rewards to users.

MStable Save is one of the applications that has adopted ERC-4626, making its Savings Contract, which accepts mUSD and generates interest as imUSD, align with this new standard. The integration into mStable and other protocols at Polygon not only drives efficiency but also lays the groundwork for an exciting future at DeFi.

The implementation of ERC-4626 in DeFi protocols running on Polygon allows users to take advantage of this standard when depositing funds and generating throughput in a variety of applications.

Data collected by Dragonfly’s data scientist Hildebert Moulié reveals that every week since the implementation of ERC-4626, there have been more than 50 instances where the creation of tokenized vaults occurred on EVM-compliant blockchains.

How do I reap the benefits?

Layer 2 (L2) solutions In addition to all of the above, we can add that you can carry out your transactions and operations at much lower rates thanks to layer 2 (L2) solutions. These solutions, such as sidechains and rollups, allow you to make transactions off the Ethereum main chain, significantly reducing gas fees, meaning you save money every time you interact with DeFi. When you combine ERC-4626 with these L2 solutions, investors and DeFi protocols can enjoy more affordable fees, making DeFi much more profitable. Now, you can invest and trade without worrying about those gas tariffs that used to be a hassle in the past due to their high cost. Now, you are looking at a more pocket-friendly experience.

In short, ERC-4626 is not just a technical abstraction but a real opportunity for investors who want security, clarity, and performance in DeFi. As we saw, protocols adopt it to increase efficiency and collaboration, and by combining it with L2 solutions, investors can enjoy a more convenient DeFi experience.

What does this mean for you? DeFi is becoming more efficient and easier to use. Rates are lower, and rewards are better, thanks to a little standard called ERC-4626. So, possibly the next time you make a transaction on a DeFi app, you’re likely to be experiencing the benefits of this innovation, which has significant implications for interoperability and new product development in the ecosystem.

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Exploring Liquidity: Why Every Investor Should Understand and Master the Concept written by Daniel Jimenez

Remember when it was difficult to exchange your BTC for fiat money? Even how tedious it could be in terms of volume and waiting times to complete an order on an order book of the few cryptocurrency exchanges available a decade ago.

The main reason for these tedious and archaic processes lies in a crucial definition for any financial market, regardless of its centralized or distributed nature: Liquidity.

What is Liquidity?

In financial terms, liquidity is commonly referred to as the ease with which an asset can be bought or sold.

The more liquid the asset, and therefore the market in which it gets traded, the quicker it is to convert financial collateral into usable cash. The opposite means that an asset is illiquid.

From a crypto market point of view, the concept is similar and investors are duty-bound to understand its importance to avoid misfortune when navigating the volatile cryptocurrency market.

In this industry, the term liquidity denotes the speed with which a cryptocurrency such as bitcoin or Ethereum, for example, can convert to cash or a stablecoin, or even the velocity with which other altcoins such as Monero (XMR) can convert to the market-leading cryptocurrency bitcoin (BTC).

How Does Liquidity Impact Crypto Investors?

Unlike the foreign exchange (FOREX) markets, with a daily volume of about $6.6 trillion, the cryptocurrency market is considered slight and sometimes illiquid compared to traditional financial markets.

Despite this, the crypto market has proven in recent years to be a niche opportunity that every investor wants to take advantage of, so it is essential to understand how the conversion of an asset, such as BTC, to another asset (fiat currency/stablecoin, or other) can affect its value immediately or in the future.

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From a trading point of view, liquidity will always be found in all crypto-asset price peaks and troughs, regardless of their seasonality. Knowing this is key to not making hasty decisions.

Why is liquidity important for crypto investors?

Understanding how an asset in the cryptocurrency market can be bought or sold without significantly affecting its price is crucial, given that it is directly related to understanding the term “liquidity” that investors consider when planning their portfolios.

Liquidity directly influences the trading strategies of cryptocurrency traders and investors, and it relates to the price stability and investment decisions that investors of all sizes may or may not ultimately make in this market.

Given the relevance of the term for investors, it is essential to understand that, in this market, there is a liquidity connection between various assets and Bitcoin at the forefront and a market-wide liquidity induced by the demand/supply of the different players living in the crypto market.

Massive price changes have caused sudden and synchronized movements in cryptocurrency liquidity in recent years, generating concerns among investors who see their trading, investment and hedging strategies affected by market volatility, especially those who do not have a clear understanding of the liquidity connection in the market.

Types of liquidity Liquidity is one of the three main factors that any investor of any size must master to enter the vibrant cryptocurrency ecosystem. Alongside trading volume and market capitalization, liquidity in crypto is essential for investors, given the advantages it offers them over less liquid investment instruments such as real estate.

In cryptocurrencies, asset classification can be divided into low-liquidity and high-liquidity cryptos. In the first case, assets are more difficult to buy or sell without affecting their market price.

Typically, these assets exhibit notable slippage, often linked to their relatively less well-known and limited market capitalization. This slippage tends to exacerbate price volatility, consequently amplifying the inherent risks for investors.

On the flip side, when it comes to highly liquid assets, they offer a seamless and rapid trading experience, contributing to a more stable trading environment regarding market prices. Prominent digital currencies like Bitcoin and Ethereum, alongside other crowd-favorites, tend to be the go-to choices for major investors.

Their remarkable liquidity enables these investors to exit positions within the market at any given moment.

In addition to low and high liquidity assets, it is essential to know the three levels of cryptocurrency liquidity:

• • •

Asset liquidity: as noted above, it is the accelerated asset convertibility into cash.

Exchange liquidity refers to the order book on a particular platform, with daily trading volumes varying regularly.

Market liquidity: This term commonly refers to the degree to which the cryptocurrency market slows down assets to be bought and sold at constant and transparent prices. Good liquidity of an asset means that the bid-ask spread is small and stable, given that otherwise, the market can become more illiquid.

The role of market depth in determining liquidity Delving into the intricacies of liquidity at a deeper level, we find that it encompasses more than just the buying or selling speed of a cryptocurrency It also delves into the multifaceted realm of market depth and the potential ramifications of trading orders on the ultimate valuation of the asset.

Astute investors must grasp the significance of market depth, a pivotal metric offering genuine insights into the ebb and flow of supply and demand for a specific cryptocurrency across a spectrum of price levels. As we’ve elucidated previously, this fascinating interplay is vividly portrayed within an order book, showcasing eager buyers on one side (the bid side) and willing sellers on the other (the ask side).

A deep and balanced order book with numerous orders on both the bid and ask sides of the asset is a fair indicator of the asset’s liquidity, which means that the market is very liquid, meaning you can quickly buy or sell the cryptocurrency without significantly impacting its price.

For large investors, understanding the direct relationship between market depth and the underlying liquidity of the asset means being able to execute complex trades where the bid/ask price spread is narrower while avoiding causing significant slippage in the asset price, especially in markets with shallow order books.

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Leveraging liquidity to maximize crypto investment returns We have now seen how order books have been the mainstay in centralised exchanges to generate sufficient liquidity in the cryptocurrency market, much as it works in traditional finance.

However, in the ecosystem of decentralized finance, one of the novel concepts brought about by decentralization is the possibility that any user can provide liquidity to the market through automated market makers (AMMs): Agents ready to buy and sell certain assets at all times, providing liquidity to the market.

Uniswap was one of the forerunners behind decentralized exchanges (DEX), through liquidity pools that work through smart contracts where tokens are locked to provide liquidity to a specific asset pair.

Liquidity Pools (LP) are part of this revolutionary concept in DeFi that allows investors to maximize their investments in the industry in a decentralized way without third parties, leveraging the concept of liquidity extended to new horizons such as borrowing and lending activities.

We invite you to study the inherent risks and the best protocols to maximize your investment return if you wish to take this opportunity to provide liquidity to the market and gain the benefits of doing so. It is beyond the scope of this post to provide the necessary considerations for becoming a liquidity provider in an automated market maker (AMM).

However, we would like to point out some key factors to consider when assessing market liquidity:

• • • •

Trading volume: The higher the trading volume, the more liquidity in the market for a particular asset.

Depth of market: A good analysis of the order book will allow one to infer whether there is a deep order book that converts into better market liquidity, as previously noted.

Spread: consider the price spread at which the asset gets traded in the order book. Smaller spreads indicate greater liquidity.

Exchange selection: There are almost 200 different options for trading cryptocurrencies on the market.

Consider using a reputable one with good trading volume for safer and more liquid trading. However, remember, no one is too big to fail or go to zero (FTX or LUNA cases).

Volatility and liquidity in cryptocurrency markets Liquidity can affect the value of cryptocurrencies as it does all other financial assets by discouraging active investment. If market activity decreases due to the rising cost of trading an asset, prices, and activity can become volatile and decrease in value.

Indeed, factors such as slow order routing, AMM fees, and settlement costs can influence price volatility and, of course, make the market shallower, reducing market liquidity.

Hence, liquidity is crucial for this growing cryptocurrency market because it provides the price stability necessary to execute large trades without significant fluctuations.

More stable prices translate into efficient trading, where traders can enter and exit positions with minimal price slippage.

High liquidity usually means lower trading costs, including lower spreads (the difference between the bid and ask price) and lower commissions, making it more profitable for investors to trade in liquid markets.

Final words The cryptocurrency market is still growing rapidly. Similar to the internet age, there are diverse investment opportunities in the wide range of cryptocurrencies to choose from in the crypto market, some more liquid than others with a diverse portfolio to help spread risk and potentially increase returns, presenting opportunities ripe for the taking.

Investors in this ecosystem must understand liquidity to manage risk, understanding that illiquid assets can expose them to greater price volatility and difficulty exiting positions during market downturns.

Understanding the concept of liquidity in this market is a powerful risk management tool for any investor, a skill that can make the difference between success or failure in a highly volatile market such as the crypto market.

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