Good news: a crisis in one of the largest crypto lenders Celsius Network did not pull crypto markets under. One week later, as the access to customer funds is still limited, we return to see how the situation at the crypto lending platform develops.
Good news: a crisis in one of the largest crypto lenders Celsius Network did not pull crypto markets under. One week later, as the access to customer funds is still limited, we return to see how the situation at the crypto lending platform develops.
What Extreme Market Conditions Caused This?
Celsius Network is a popular gateway to digital assets. Customers flocked to it thanks to its extraordinary high rates on lending, up to 17% APY. Thanks to it, it managed to amass billions of user funds under management.
Think of the crypto lending platform as a bank on steroids: the company used eccentric financial strategies to generate high return for customers. Experts warned Celsius customers of the financial risks time and time again, only for it to be dismissed as FUD (fear, uncertainty, doubt).
If you have read our coverage last week, you already know that in mid-June the company encountered a severe liquidity shortage after the value of cryptocurrencies started to decline. A particularly vulnerable position was in stETH, a Lido product that is a tokenized stake on the Ethereum Beacon (PoS) chain.
Citing extreme market conditions, they stopped all swap, withdraw and transfers between Celsius accounts. This has caused panic on the market, as traders became increasingly wary of contagion risk and a bank run.
Is the Crisis in Decentralized Finance under Control?
Stabilizing the Crypto Platform
Since then, quite a lot has already happened, warranting an update to the recap. To begin with, the Celsius team urged the users to beware of impostors. However, instead of maintaining open dialogue with the Celsius community, they chose to pause all Twitter spaces and AMAs altogether.
Meanwhile, “CEL short squeeze” entered the trending topics on Monday. The community managed to make the CEL token value rally 300% and outplay the short sellers.
Trouble Spilling All Over
This liquidity and operations ordeal inevitably drew the attention of traditional finance regulators to DeFi and lending in particular. Shortly after pausing withdrawals, Celsius started a restructuring process and ramping up their legal defense team. This is not unwarranted, as not only Texas State Securities Board but four more states’ Securities Commissions started an investigation into the business operations of the crypto lender.
To make things worse, rumors of contagion risks around other crypto companies and markets were unrelenting. Speculation is, 3 Arrows Capital, which dabbled in even riskier assets, is also on the verge of insolvency. Sam Bankman-Fried of Alameda Research and FTX had to go on record to deny any involvement in the crash and bailouts. The CEO Alex Mashinsky went further and blamed “Wall Street sharks” for the recent industry events.
What Impact Did It Have on the Market?
We reached out to more industry and crypto market experts for insights into the situation. The first comment we received was from the founder of the BoxMining media Michael Gu:
Celsius is rumored to be insolvent. The two main pillars behind their present predicament could be attributed to the use of on-chain leverage & stETH. There is insufficient liquidity for Celsius to swap out of $stETH for $ETH — even at a loss.
But with the current market scenarios and the amount of loss due to hacks (e.g. BadgerDAO), there is a lot of unwarranted FUD. Even with withdrawals on pause, we shouldn’t forget — Celsius raised $864 million in venture capital and at a certain point was the custodian of over US$3 billion of digital tokens for more than 1 million customers.
The situation surrounding Celsius is not analogous to what happened to UST-LUNA, and the huge fear surrounding the market is overblown.”
Find a more detailed recap in his video about the events — check it out!
Another guest who was kind enough to share his point of view with us is Connor Kenny. We asked him what will expect the markets in the light of these events in the near future:
“The situation with Celsius is worrying for the market as people believed their funds belonged to them and were easily accessible. But now that Celsius has stopped withdrawals leaving their platform, people are stuck with no choice other than to ‘wait and see’.
This brings into focus the true nature of some of these platforms and will make people question how decentralized crypto really is. The important thing for everyone to remember is that if you do not hold the private keys to your crypto it technically is not yours and all you hold is an ‘IOU’. The best thing to do is move any long-term holds into non-custodial wallets and cold storage devices.
I do not think this is the end for crypto but it does shine a light on some of the issues we face going forward.”
If you would like to have a more elaborate look into his opinion, we highly recommend watching a video he dedicated to the news and its analysis:
This Sunday evening will mark two weeks since Celsius paused withdrawals and transfers between accounts, so it’s understandable users are getting increasingly worried about their digital assets. The company maintains it will meet its withdrawal obligations in due time, and it seems by now they are in a marginally better position to do so.
Stay tuned to our blog to stay in the know about the latest news in the financial and cryptocurrency world. If you want to receive updates on a daily basis, sign up to our Twitter, Facebook and Telegram.
On June 13, crypto lender Celsius Network halted withdrawals and account transfers. Why did it happen and will it affect the crypto market?
On June 13, crypto lender Celsius Network halted withdrawals and account transfers. A deeper look into the reasons for it reveals a troublesome situation, and some even claim it was a catalyst for Bitcoin and Ethereum dropping to yearly lows. So let’s try to unpack: what happened to Celsius Network and what next?
What is Celsius Network and CEL?
Celsius Network is a blockchain-based lending and staking platform. It positions itself as a decentralized and transparent alternative to “TradFi” and attracts users with lucrative yields.
Its native token CEL offers additional privileges to its holders on the platform: discounts on loan payments, increased yields, and more. Since Celsius works on the Ethereum blockchain, CEL is an ERC20 token.
Traditional finance has used lending to generate yield for deposits for many centuries now. However, a platform like Celsius would not have settled for a solution this simple.
The generous annual percentage yields that Celsius offered — up to 17% on deposits — became achievable thanks to DeFi. And not simply using decentralized protocols: Celsius goes all-out on yield generating strategies.
Using the liquidity provided by depositors, over years Celsius built enormous positions across plenty of DeFi protocols, including the likes of Anchor Protocol. It has even been public knowledge that Celsius uses unsecured lending on a very limited basis, despite what they used to tell to their users.
Until recently, all these criticisms were rather successfully dismissed as FUD: Celsius was working as intended. Users staked cryptocurrencies and received handsome payouts, loaners received crypto as long as they provided collateral.
Why Did Celsius Pause Withdrawals?
The whole situation has been excellently described in detail on Twitter by users jonwu.aztec and Namcios. Long story short: Celsius underestimated the risk that came with their loaning strategies. The crypto lender is handling a liquidity shortage and not being too graceful about it.
Like we mentioned, Celsius had massive positions across plenty of DeFi protocols. The first positions to get redeemed for USDC were Celsius stakes of wBTC and ETH in Aave, and instead of repaying some other loans upfront, Celsius chose to reimburse collateral.
Why would you opt for this? We can see it on the example of the stETH position of Celsius. StETH is a product by Lido: it represents ETH staked in the Beacon chain.
The main problem with stETH is that it is not redeemable for ETH for 6~12 months after the merge. Right now, one can only trade stETH for ETH on an open market or lend it in exchange for ETH.
Curve is a popular protocol to do it, but at the moment of writing, Curve has virtually no liquidity for the pair. To make things worse, stETH lost its peg to Ether.
Therefore, Celsius Network ended up with outstanding loans it can’t repay in the loaned cryptocurrency. The only choice is to replenish collateral in the currencies they have, which is multiple the debt.
So, is Celsius Insolvent?
As for the severity of the situation, at the time of writing there is no definitive statement on the insolvency of Celsius Network. From the latest news on the topic, the company seems to bolster their legal team to tackle incoming repercussions but is far from going belly-up.
The CEL token momentarily jumped 117% up on Tuesday with this update to the unraveling situation. What is more, it coincided with the news of Tether liquidating their Celsius position at no loss.
What Will Happen to Celsius Network Now?
For the input on the topic and the future of Celsius, we reached out to Donald Lee of CoursehackClub YouTube channel.
— What is happening to Celsius? — There had been rumors last week that Celsius was insolvent, which means that, people deposited their crypto with Celsius, and Celsius didn’t have the funds to pay back all depositors when asked for. As a result, on Sunday, Celsius paused all withdrawals, swaps, and transfers. This created huge FUD (i.e. fear, uncertainty, and doubt) that Celsius was going to go bankrupt and they are one of the largest centralized lending platforms in crypto with ~12B in assets just mid-May.
Will Celsius Overheat Affect the Market?
— How will it influence the market? — There were also concerns that the company faced potential liquidation on their large leveraged BTC position on Maker. Prior to Bitcoin falling to the current prices near 20K, Celsius’s liquidation price was ~22K. If they had been liquidated, it would be game over and we wouldn’t know how Bitcoin would have recovered. There is VERY strong support at $20K for BTC, and never in history had Bitcoin closed below the last cycle’s all time high. Many factors, like COVID-19, the war, and especially interest rate hikes are putting downward pressure on price. We have never been in this state before. Luckily, Celsius has brought down their liquidation price to $14K as per the vault. Maker has stated they are low-risk. The main contributor to the crypto market and stocks right now is the Fed meeting. We may see further downside. Speculation: There is too much risk right now for not just Celsius, but the entire crypto market and potentially stocks, for Celsius to be liquidated. El Salvador is in the red with their BTC holdings. I guess my FUD analysis is that if Celsius goes bankrupt, there will be much bigger problems in the world to worry about – I think big money (i.e. institutions) will not let that happen. P.S. We don’t know how big Celsius’s war chest is. It’s a different situation from Terra and Luna. People should not worry for now and stay positive about the situation… until Bitcoin falls under $14K (their liquidation price – which is unlikely).
For even more insight into the situation, watch the video from our guest expert with a detailed breakdown of the Celsius situation:
A Bottom Line
The market is absorbing the shock of closed withdrawals, and other forces are taking precedence over the influence of Celsius’ positions on the market. However, will Celsius Network handle the damage and the consequences remains to be seen.
We hope you enjoyed this deep dive, and you can find more in our blog! If you want updates on a daily basis, sign up to our Twitter, Facebook and Telegram.
The mainstream media is about to declare Bitcoin dead for the umpteenth time, as the cryptocurrency market rapidly lost 18% of its value over a week. However, not only is this situation far from the end of all crypto, it can even be turned to your advantage. We will explain how, and give a list […]
The mainstream media is about to declare Bitcoin dead for the umpteenth time, as the cryptocurrency market rapidly lost 18% of its value over a week. However, not only is this situation far from the end of all crypto, it can even be turned to your advantage. We will explain how, and give a list of cryptos to buy during the dip.
Last weekend, the stock market plunge sent the cryptocurrency market down the drain and caused massive liquidations across the board. Top cryptocurrencies lost 10% to 20% of their value on average, and the total market cap shrunk by $700 billion;
Some crypto platforms even managed to benefit from this event. For example, MakerDAO capitalized on ETH liquidations, while ATOM decoupled from the bearish trend altogether;
While some see this as a setback, for others this is an opportunity to buy the dip. We highlight several cryptos to buy during the dip: BTC, ETH, FTM, ATOM and NEAR.
What happened in the last few days?
Late January proved bearish for the cryptocurrency market, when after the market correction this past weekend erased almost $700B of value from the total market cap. Bitcoin went down 28% and ether suffered a 40% loss, reaching the 6-month minimum. The sudden collapse is said to be tied to the movement of the tech stocks, as the Nasdaq composite stock index fell by 5%. (Some analysts claim that the real reason is not that simple). Other possible reasons could be macroeconomic: the stock market is in a comparable position because of the US Federal Reserve press conference. The topic was the asset-purchase program and various related policies; the announced conclusion points to the increase in federal funds rate. The proposition of a blanket ban on cryptocurrencies by the Central Bank of Russia did not seem to shake the markets much. Russia is now walking away from the ban in favor of regulating. Now that the sudden selloff is slowing down, are you asking yourself, “What coins should I buy for dip?” If yes, then read on for our list of cryptos to buy during the dip.
Cryptos to buy during the dip
Regardless of the reason, this correction could pose a chance to buy the dip. Speaking of, what is the “buy the dip” strategy, exactly? Simply put, this is a contrarian angle to the golden rule of trading — “buy low”. When the market cools down, and the price bounces up, there will be a good chance to sell high for profit. But for that chance to be guaranteed, you need to know options that have enough potential to recover. What are the best cryptos to buy now? Check out five cryptos to buy during the dip that we think are a safe pick.
This one is obvious: after all, it is the original cryptocurrency and is the most adopted one. History proves that in Bitcoin there have been multiple cycles of dips and rallies, each culminating in a new record. From January to April 2013, BTC rallied from $13 to $230. The sharp correction took the price down 70%, to $68 — which is still a 423% profit from the 2013 opening price. A similar pattern occurred in 2017-2018: the price pumped parabolically to little shy of $20,000. The subsequent weeks saw a sharp pullback below $7 thousand but again, it’s worth remembering BTC at the start of 2017 was trading below $1 thousand. Is Bitcoin dip 2022 the same? Time will tell, as this cycle seems to be playing out differently so far. At the moment of writing, one BTC is traded for $36,413.60. Bitcoin is down 21% in comparison to the opening price in 2022. Many Bitcoin bulls claim that the $100,000 target is still on the table — but maybe later than sooner. Stock-to-flow model author Plan B still sticks to it, and despite being in the red, El Salvador president Nayib Bukele continues to announce dip purchases.
By 2022, the sheer volume of utility in the Ethereum ecosystem is nothing to sneeze at. Like with Bitcoin, it should be out of question whether one needs to buy the dip of ETH. Ethereum was also hit rather heavily in the correction. On the weekend, its daily losses came up to 14% and caused massive liquidations of collateral in MakerDAO, Compound and Aave. At the moment of writing, one ETH is traded for $2,438.79. Ethereum is down 34% in comparison to the opening price in 2022. What’s in store for Ethereum in 2022? Ethereum will keep facing stiff competition from layer-one blockchains such as Solana. On-chain data suggests that at the moment value is flowing out of Ether into altcoins and even NFTs. Nevertheless, the upcoming shift to Proof-of-Stake can help ETH secure its leading position. By the way, the Ethereum Foundation ditched the “Ethereum 2.0” label, and now it is called “Consensus Layer”.
The following altcoins are included in the cryptos to buy during the dip list because they managed to outperform both BTC and ETH in 2021 and 2022 so far. Why did Fantom do better than the rest? Over the course of 2021. Fantom went parabolic from $0.017 all the way up to $2.25. This is a 13,135% growth in a year. In 2022 alone Fantom outperformed Ethereum in more ways than one: it beat its transaction activity on Monday. The DeFi network flipped Binance Smart Chain after the launch of 0xDAO (DEX), Multichain (cross-chain bridge) and announcement of Solid Swap (AMM). At the moment of writing, one FTM is traded for $2.19. Fantom is down only 3% in comparison to the opening price in 2022. Fantom almost reached a new ATH on January 16, pumping to $3.35 not long before the market carnage. The drop caused it to return to the $2 support but the trading volumes and technical analysis suggest the discount may not last too long. Altcoin Sherpa, for example, predicts that the $3.3 resistance may be broken soon, which means a new ATH.
Another unexpected asset in cryptos to buy during the dip is Cosmos. Its fundamentals proved to be so strong, that it actually rose during the selloff. Cosmos’ ATOM managed to rise by 8% during the bloodshed. The defying factor was the anticipation of airdrops of Cosmos’ hub tokens and the bridge to Polkadot. At the moment of writing, one ATOM is traded for $31.09. Cosmos is down 5% in comparison to the opening price in 2022. Despite that ATOM has already shaken off the gains, it might still be too early to buy in. Before that, analysts recommend to watch whether ATOM defends support levels at $25 and $20. More opportunities for growth are certain to appear in 2022, as four major upgrades and the bridge to Polkadot are in the works.
Near Protocol (NEAR)
Another layer-one network that attracted attention among cryptos to buy during the dip is Near Protocol. Unlike the previous two, it sports an Ethereum Virtual Machine-compatible platform Aurora, where the dApps can already migrate to. NEAR somewhat repeated the price movement of ATOM and FTM. Unlike these two, it actually managed to score a new ATH on Jan 15, 2022: $20.42. It is already down 45.47% down from the ATH but the good news is: you won’t be buying the high! At the moment of writing, one NEAR is traded for $11.13. Near Protocol is down 23% in comparison to the opening price in 2022. So where does the confidence in the bounce come from? In the short term, NEAR entered the oversold area very quickly, creating circumstances attractive for buyers. In the longer term, Near Protocol’s Aurora and Rainbow Bridge were cited by the Panthera Capital’s analyst as the features that can cause explosive growth of the ecosystem.
What coins will explode in 2022? Whatever any shiller says, the real answer is, no one can tell you for sure. These five cryptocurrencies, however, are a safe pick to profit within 2022. Did you enjoy the analysis? Do you have your own ideas? Make sure to let us know in the comments below or on social media (Twitter, Facebook, Reddit and Telegram)! Check out our blog for more crypto news coverage and educational articles.
Without any doubt, this year has been extremely eventful and bullish not only for Bitcoin, but crypto overall. What happened to crypto market in 2021? We take a look at the most memorable events and the most stellar rallies in this crypto recap 2021. Key Takeaways Bitcoin continued the rally that started late in 2020, […]
Without any doubt, this year has been extremely eventful and bullish not only for Bitcoin, but crypto overall. What happened to crypto market in 2021? We take a look at the most memorable events and the most stellar rallies in this crypto recap 2021.
Bitcoin continued the rally that started late in 2020, gaining over 130% at the latest ATH ($68,789). However, altcoins were where the most price action was happening: some altcoins such as SOL and LUNA gained five-figure profits;
In September 2021, Bitcoin received the official status of legal tender in El Salvador. In the first half of 2021, China has been cracking down on mining and cryptocurrencies;
Ethereum also improved massively, rolling out major updates to the legacy chain and Ethereum 2.0, preparing for the merger. The growth of the ecosystem was helped by non-fungible tokens gaining traction in the mainstream;
2021 saw trends like NFTs and blockchain gaming rise to unprecedented levels of media attention.
Bitcoin Recap 2021
The first peak of the rally coincided with Coinbase going public in April 2021. On Apr 14, 2021 Bitcoin’s price reached $63,503. The rally was brought to a halt when Tesla CEO Elon Musk announced that the company will step back from their decision to accept BTC for payments. This news was most likely mistaken for a sign that Tesla will start selling their 43,200 BTC on the balance sheet. The current ATH was reached on November 10, 2021: $68,789. The second leg up was boosted by the adoption of Bitcoin as legal tender in El Salvador, the approval of Bitcoin ETFs in the US, and the Taproot upgrade. How did Bitcoin perform in 2021? At the yearly peak, BTC gained 137.25% in comparison to the 2021 opening price. At the moment of writing the crypto recap 2021, it is up 64.86%.
A historic milestone was achieved: Bitcoin became a legal tender currency in El Salvador on Sep 7, 2021. The move was made to reduce the nation’s reliance on USD (the other legal tender) and helped to increase accessibility to payments infrastructure The Salvadoran government was not the only ones embracing Bitcoin in 2021. 52,000 BTC were bought by MicroStrategy this year alone, and Grayscale Bitcoin Trust offered exposure to 70,000 BTC more to accredited investors. Grayscale BTC Trust is no longer one of the few ways for institutions to trade Bitcoin. ProShares received the green light to create a spot Bitcoin ETF, which is traded on the New York Stock Exchange. Other major holders of BTC (that we know of) are Block (formerly Square) (8,027 BTC), Galaxy Digital (4,000 BTC) and mining companies: Marathon, Riot, Argo and others.
One of the largest upgrades to the Bitcoin blockchain in years was activated on November 14, 2021. Taproot included three separate proposals:
Merkelized Abstract Syntax Trees (MASTs) which reduce data footprints of transactions,
Pay-to-Taproot which made it harder to distinguish ordinary, MultiSig and Lightning transactions, which improves the privacy of Bitcoin users;
Schnorr signatures, a more advanced cryptographic signing method.
The upgrade came with some potential risks like community fracturing or low adoption, leading to a hard fork in both scenarios. However, prior to the upgrade, the majority of miners signalled support, eliminating these worst-case scenarios.
Ethereum Recap 2021
Ethereum massively outperformed Bitcoin in 2021. More than that, it decoupled from BTC’s price: the first peak occurred for ETH in May, and in November lost less in correction. The peak on May 11 was not long after the correction in Bitcoin, suggesting the flow of capitalization from BTC to alts. The second peak, when the ATH of $4,891 was reached, happened roughly a week later than BTC. At the moment of writing the crypto recap 2021, ETH is 406% up in comparison to 2021’s opening price. ETH outperformed BTC by roughly four times.
Merger with Ethereum 2.0
…didn’t ship this year, though it would have been too early anyway. The closest we got to the merger with Proof-of-Stake was when the Kintsugi public testnet was launched. Prior to that, several other important updates were rolled out for the Ethereum blockchain. The most discussed one was the London hardfork, and its fee burn feature.
Shiba Inu (SHIB)
The memecoin frenzy of 2021 is best illustrated by the ‘dog money’, Dogecoin inspired tokens. Probably one of the most impressive breakthroughs we want to highlight in our crypto recap 2021 was made by SHIB. It happened due to a massive surge in popularity by the hands of the community. The social networks have million followers, and individual token holders are also said to amount to a similar number.
Since it became clear that the Ethereum merger is not happening soon, scaling solutions became as relevant as ever. The one worth highlighting in this crypto recap 2021 is Polygon. Matic Network started 2021 with a rebranding to Polygon to reflect their departure from an Ethereum scaling solution to a platform of a much larger scale. The price of MATIC, which kept its original ticker, reacted accordingly: it is one of the top gainers of 2021 with 14,250% to date.
Axie Infinity (AXS)
Another massive trend of 2021 came to be known as Play-to-Earn or even GameFi. The potential of blockchain games that reward players and incentivize trading manifested in the Axie Infinity’s story. The game came to limelight after stories about how Axie Infinity helped change the lives of Filipino players. It continues to do so even in December, while the community comes together to provide relief to the Odette hurricane victims. Just so you understand how the game blew up: in comparison to the opening price in 2021, the utility token AXS is up by 17,481% at the moment of writing.
Another breakthrough this year was achieved by the Solana team and community, which enjoyed immense attention in 2021. Decrypt even named SOL coin of the year in their cryptocurrency recap 2021. One of the reasons it attracted it was the spectacular alt season rally of SOL in June after BTC corrected 50%. As a result, SOL is 11,403% up from the opening price and by now is consistently in the top-10 cryptocurrencies. Price rallies were not the only reason Solana became the center of attention. The project became known for embracing inevitable challenges and hurdles that innovation has — even at the cost of uptime.
Speaking of DeFi, there was an unexpected dark horse which stormed the top seemingly out of nowhere. The Terra protocol, usable for stablecoins and digital payments, built up presence over the course of 2021. The protocol received multiple major updates within the year, driving the price of the governance token LUNA up to $86.11 at the time of writing. This is a massive 13,080% profit from the price on Jan 1, 2021. At the time of crypto recap 2021, Terra became the second largest DeFi protocol with a total locked value of $18 billion. It surpassed even the champion of 2020, Binance Smart Chain, even with a far fewer number of protocols and products on the chain (14 vs. 252).
Last but not least, if we talk about crypto breaking into the mainstream, we cannot avoid mentioning Crypto.com in the crypto news recap. Their gargantuan campaigns made sure the concept of “crypto” is burned into the public consciousness. Purchasing naming rights to the Staples Centre is only one of such efforts. The result of their promotion is clearly visible in CRO’s price, which is up 860% this year.
The tech that made crypto go mainstream in 2021 was NFTs. The FOMO started in March with the $69 million dollar Christie’s sale of Beeple’s EVERYDAYS: The First 5,000 Days. This sale solidified the narrative that NFTs can be a novel venue for artists to monetize their art. However, the highest prices overall and the most attention was paid to collectibles. Bored Ape Yacht Club, Lazy Lions and CryptoPunks became the face of the new trend in crypto. So much so, that the floor price (price of the cheapest piece in the collection) served as a metric for the interest in the market. It should be mentioned that NFTs in the mainstream were met with significant controversy. The main points of contempt are lack of explicit ownership of rights, art theft and environmental impact. The last argument is somewhat misinformed, as Proof-of-Stake NFTs are equally, if not more popular, and eventually all Ethereum NFTs will be energy-efficient, too. Nevertheless, it did not stop many celebrities from hopping on the trend: Paris Hilton, Jimmy Falon, Elijah Wood all became proponents of crypto. Even companies with household names like Pepsi and McDonald’s did not miss their chance to take part.
Some More Events of 2021 in Crypto
It can sound like a lie, but the WallStreetBets and GameStop controversy happened this year. Apeing, diamond hands and other bits of WSB sub-culture irreversibly changed the face of crypto. With the summer alt season came innumerable fly-by-nighters: hacks, exploits and rug pulls came up weekly, if not daily. One of such scams was the SQUID token: the developers promised to deliver a game based on a hit Netflix show Squid Game, only to have the token drop from $523 to zero and feign innocence. Poly Network became the subject of a rather unconventional hack this August. The attacker who drained the protocol of $613 million turned out to be a “white hat” and agreed to return the funds.
The most impactful and radical regulatory move of this year came from mainland China, as they prohibited cryptocurrency mining and then trading. This accelerated the correction on the market, as well as was actually positive for mining, reducing its centralization. The infrastructure bill and its definition of “broker” were one of the regulatory fights Americans were most engaged with. In addition to increasing the USD supply by $1 trillion, it would also mean that most crypto transactions would be subject to taxation. India has been on and off regarding crypto this year. As it stands, anything close to certainty can be achieved in 2022.
What to expect in 2022?
Hardly anyone in 2020 could have predicted that DAOs will become a thing again or the impact NFTs would have made this year. One thing is certain — we will be hearing about CBDCs a lot more often next year, as China finalizes the digital yuan and other nations launch pilot programs. Cynthia Lummis, Wyoming senator, has recently announced plans for a bill that is due early 2022 for comprehensive crypto regulation. Americans also have yet to hear about stablecoin regulation or instructions for banks. Europeans will see the start of negotiations on the Markets in Crypto Assets framework. In Asia and Pacific-Asian countries, the most likely nations to propose rules and frameworks are Hong Kong and India. The merger with Ethereum 2.0 is expected by mid-2022 if all goes well. Shifting such a huge chunk of the crypto market to a completely new economic model will definitely send shock waves across the space. Finally, no one could have seen El Salvador adopting Bitcoin as legal tender, but by 2022, there are already a few candidates to make such a move soon. One of them is Colombia, and the LATAM region seems to be generally more inclined to offer favorable regulations for Bitcoin and crypto.
It is no understatement to say that 2021 has been a massively eventful year for crypto. From China’s complete ban to El Salvador making Bitcoin legal tender, all kinds of historic news and events have been happening to Bitcoin, cryptocurrencies and blockchain. We hope you enjoyed our crypto recap 2021! To see how 2022 will unfold for crypto and blockchain, keep an eye on our blog and follow ChangeHero on Twitter, Facebook, Reddit and Telegram.
2021 will go down in the history of crypto thanks to the largest bull run to date and recognition of Bitcoin as legal tender. This year has also been big for us, so in this article we will recap the ChangeHero’s achievements of 2021. Key Takeaways Some of the ChangeHero’s achievements are best illustrated by […]
2021 will go down in the history of crypto thanks to the largest bull run to date and recognition of Bitcoin as legal tender. This year has also been big for us, so in this article we will recap the ChangeHero’s achievements of 2021.
Some of the ChangeHero’s achievements are best illustrated by the numbers: 96 new cryptocurrencies, growth of traffic by 490% and number of transactions by 164%;
ChangeHero was mentioned in the reviews by CryptoPotato, CoinCheckup, BeinCrypto, Bitcoinist and other popular media outlets;
Our roadmap for 2022 includes improvements to stability and performance of the platform, as well as a mobile application! The marketing team has more events and collaborations in store, and an ambassador program in the making.
New Currencies on ChangeHero in 2021
At the start of 2021, we had 88 active coins and tokens on our platform. Already impressive, but stopping at this was not an option. Over the course of the year, we have added 96 more cryptocurrencies, bringing this number all the way up to 184 supported coins and tokens. More than doubling the number of integrated currencies is one of the biggest ChangeHero’s achievements made by the development team.
Social Media Collaborations
Many communities enjoyed our educational content and shared it. Among them are Zcash, Verge Currency, Theta, Ravencoin communities, and more! The Shiba Inu community, which is known for being one of the largest crypto families, has warmly welcomed our collaboration with some of Shiba Army’s largest influencers: @ShibaMovement, @ShibaAustralia, @ShibArmyCommand. On our side, we provided them with the discount on all SHIB exchanges for two weeks in a row due to high demand! Did you know that there is an ongoing Twitter collaboration with our long-time partners CoolBit X? Keep an eye on our Twitter page for more upcoming events: for one, there will be a giveaway of 10 co-branded and 3 Pro CoolWallet devices!
Partnerships in 2021
In addition to ChangeHero’s achievements with media partners, we have acquired a couple of long-term collaborations that we would like to highlight.
In February, we were welcomed into the CoinShuffle family — the collection of rigorously reviewed exchanges with the best fixed rates. This partnership is yet another testament to the best crypto exchange experience provided by yours truly.
And in September, we joined the ever-growing list of SwapZone’s partners. Sorting by the best rates, hundreds of currencies and independent best crypto exchange reviews — they are a one-stop for all crypto swapping needs.
2021 ChangeHero Stats
We can keep writing about ChangeHero’s achievements in length, but let’s let the numbers talk, too! Over the year, more and more users have visited our main page daily: in 2021 there were 490% more visits than the last year. Our social pages also became even more lively: in 2020, there were 2,271 followers on our Twitter page and less than a hundred users in the Telegram channel. Now, there are 6,648 Twitter followers and 4.3 thousand Telegram channel members. The number of transactions made this year also increased significantly. We have processed 164% more transactions in comparison to 2020. During 2021 so far, our users have left 82 ChangeHero reviews on TrustPilot.At the moment, our rating is “Excellent” with a 4.7/5 score.
Media about ChangeHero
Our team enjoyed a lot of media attention to the ChangeHero’s achievements this year. First, we were featured in CoinCheckup’s list of fast and secure crypto exchanges. Popular media outlets like CryptoPotato and BeinCrypto have published an extensive ChangeHero review each. Another ChangeHero review was also published on Invezz, highlighting security of the service and ease of use. Most recently, our platform was highlighted on Think Maverick blog in their list of the best crypto exchange platforms. Another outlet that featured ChangeHero in a similar list and tested it out is Bitcoinist.
What to Expect in 2022?
No matter how many ChangeHero’s achievements there were in 2021, in 2022 we are dedicated to keep going and achieve more. Of course, there are already plenty of plans for 2022 in our team. Some of them we cannot tell you just yet, but some plans we can tease to keep you looking forward to. The marketing team is going to keep doing giveaways and collaborations with influencers even in early 2022. Make sure you’re following our social media! The development team is going to continue improving the performance of our platform. The big feature you can already look forward to in 2022 is a mobile application for iOS and Android. Stay tuned for more news! Don’t hesitate to let us know what you would like to see implemented or improved! Every ChangeHero review helps us become better for you.
None of the ChangeHero’s achievements could be possible without the support of our users and community. We look forward to providing the best crypto exchange experience possible in 2022 as well. Our team is also active in social media, where we feature educational content, updates and campaigns. You can join in, too, by giving us a follow on Twitter, Facebook, Reddit and Telegram.
Bitcoin is the best known cryptocurrency out there for a reason, being both the first and the most adopted one. Still, for newcomers the questions of how it works or why it is blowing up now can be shrouded in mystery. In this Bitcoin beginner’s guide, you will find all the essentials of Bitcoin explained, […]
Bitcoin is the best known cryptocurrency out there for a reason, being both the first and the most adopted one. Still, for newcomers the questions of how it works or why it is blowing up now can be shrouded in mystery. In this Bitcoin beginner’s guide, you will find all the essentials of Bitcoin explained, tips on buying Bitcoin safely and how to put it to use.
Bitcoin is a decentralized digital currency on the blockchain, which enables peer-to-peer value transfers;
Unlike national currencies, BTC is maintained by miners worldwide with the help of cryptographic software;
Bitcoin is used for online purchases with thousands of online and offline merchants worldwide. It also can be viewed as “digital gold” thanks to its scarcity.
What is Bitcoin? How does it work?
By definition, Bitcoin (BTC) is both a decentralized digital currency and a distributed ledger secured cryptographically, called blockchain, which it runs on. In traditional financial systems, an intermediary or a central authority maintains the integrity of the records, and we need to trust them. On blockchain, it is done with the help of cryptography and computing, so it is trustless and immutable. What does Bitcoin being decentralized mean? The copies of Bitcoin’s blockchain are stored in nodes that run its software. Since there are thousands of independent nodes that have a copy of the blockchain, rewriting the transaction history is unfeasible. This is further secured because blockchain requires cryptographic work to make records in it. Bitcoin is also pseudonymous. The information about transactions and public addresses can be seen by everyone, so there is a very high degree of transparency about funds accumulation and movement. Public addresses are visible but not linked to any person in real life by default. Instead of accounts, Bitcoin uses the entire history of transfers to track funds, from the moment of being “minted”.
What is Bitcoin mining?
Mining is both a mechanism for BTC emission and security. Bitcoin is designed to be a scarce asset, meaning that there is a hard-coded limit of 21 million coins to ever be mined. Bitcoin uses a Proof-of-Work consensus algorithm, and miners are a crucial part of this process. By running calculations on processors, they decipher the hash function of the next block which will include all the new transactions. Once included in a block, the transaction is on a chain, and a few blocks (the generally accepted number is 6) later it is soundly recorded in it. This is why miners receive block rewards with newly issued BTC and all the transaction fees from the transaction included in a block they discovered. To gradually decrease the issuance rate, every four years the miner reward is slashed in half in a process called “halving”. In May 2020, the rewards were reduced to 6.25 BTC per block. The result of the last mining event can be observed in 2021: the reduced supply of BTC caused its price to soar.
From the moment of its inception, Bitcoin has received a plethora of updates that serve to improve its scalability and security. All of them went through a process of reviewing and voting by the community.
MultiSig, as it is often called, is a feature which is only possible in cryptocurrencies thanks to the cryptographic signatures. On a basic level, addresses that support MultiSig group several network participants and require the majority or all the signatures to approve a transaction. This is a quite useful feature when extra security is needed.
An update marked SegWit [Segregated Witness] rolled out in August, 2017, not long after Bitcoin Cash forked off. This was Bitcoin Core’s alternative solution to the scalability problem: instead of making blocks larger, they decided to make transactions take less space. This was achieved by separating the data about the transaction from the cryptographic signature which accompanies each transaction and putting it at the end of the data string. This enabled off-chain solutions to work on the Bitcoin blockchain.
Lightning Network (LN)
Essentially, it is a peer-to-peer side channel that lets participants exchange Bitcoin without dragging the entire transaction history with the coins or paying a large fee every time. When needed, the Lightning Network channel gets closed and the history of transfers that occurred on it gets recorded on to the main chain. It went live in March 2018 but the iterations of it continue to be released and tested to this day.
The most recent update to Bitcoin Core’s client included several improvements to scalability and privacy. It also made BTC transactions more programmable. For example, it made multi-sig and Lightning addresses look the same as regular ones. This reduces the ability of outsiders to link addresses to persons in the real world, thus increasing privacy, as well as makes transactions take less data space.
What is Bitcoin’s History?
Writing a Bitcoin beginner’s guide is impossible without starting from the very beginning. And that was a long time ago. The cryptography works that Bitcoin was based on date back to the 90s and it has roots in the cypherpunk community. Many of the developers like Hal Finney, Nick Szabo and Wei Dai who were attempting to create digital currencies before Bitcoin, became its earliest adopters. Bitcoin’s history begins in 2008 amidst the global financial crisis. In August 2008, the domain bitcoin.org was registered and later, in October, a developer under the pseudonym Satoshi Nakamoto published the whitepaper “Bitcoin: A Peer-to-Peer Electronic Cash System”. The genesis, or the very first, block was mined on January 3, 2009. At its coinbase it included a message: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”. About a year later, Nakamoto gave up any involvement in the project and Gavin Andressen essentially took over as the man behind the project. In the first few years, the community consisted mostly of developers and enthusiasts, and there was barely any market activity. The Bitcoin Foundation, the closest thing to a public group behind the project, came to be in 2012. Slowly but surely, Bitcoin received attention from more and more investors, and by 2013 substantially gained in price and market capitalization enough to receive attention from the mainstream and regulators. From there on, albeit not without incidents like the Mt.Gox and Bitstamp hacks or regulatory struggles, Bitcoin was becoming more widespread as a means of online payment and storage of value.
In 2017, at the peak of popularity of Bitcoin, a long-lasting dispute in the community about the scalability issue resulted in a hard fork (chain split). The new branch would become Bitcoin Cash. The point of contempt was a limited size of the block in the original Bitcoin, which led to network congestion and high network fees. The part of the community that formed the Bitcoin Cash community decided to solve this issue by increasing the limit of data that can be included in a block from 1 MB to 8. Later on, in 2018 the Bitcoin Cash community split further into the supporters of this design and those who insisted on removing the block size cap. This fork is now known as Bitcoin Satoshi Vision, or Bitcoin SV (BSV).
How does Bitcoin differ from fiat currencies?
What is Bitcoin used for, instead of fiat? Originally, Bitcoin was designed to become “digital cash” and be used for peer-to-peer payments. It is still used in this fashion with thousands of merchants that would accept it. Over the years, another use case for Bitcoin emerged: since it is disinflationary, some started to use it as a hedge against inflation. There is a fixed supply of 21 million coins that will fully enter circulation only by 2140. Crypto sceptics often dismiss cryptocurrencies as something that is not backed by anything of value. However, most of the world’s fiat currencies are divorced from a source of hard value like gold, too. Cryptocurrencies like Bitcoin are backed by the work put into securing and propagating the network (hence, proof of work). The more electricity is used to maintain the network, the higher the costs miners would seek for the newly minted coins. Decentralized cryptocurrencies like Bitcoin are borderless and accessible by anyone. There is no need to be authorized by any entity to transfer or transact with Bitcoin and it can be done easily across jurisdictions. For the time being, though, the on-chain economy relies heavily on the existing financial system. The value attributed to it is still calculated depending on the price buyers are willing to pay to buy Bitcoin or sell it, usually expressed in fiat currencies.
What is Bitcoin Criticized For?
Proof-of-work blockchains are infamous for their high, and growing, energy consumption. At the moment of writing, Bitcoin’s hashrate easily exceeds 160 Exahash/second on a daily basis. It means that the machines working on mining Bitcoin consume about 8 Gigawatts a year. A single transaction releases an estimated 480 kg (1,060 lbs) of CO2 into the atmosphere. It is not only about energy: the wear and tear caused to processors by intensive calculations result in hardware waste. In comparison with gold mining, the carbon footprint of Bitcoin is already 15 times higher. Of course, sustainability concerns are not unheard of in the crypto community. To offset and reduce the impact, efforts to use more renewable energy are made.
Due to some fundamental design features like immutability of transactions, dealing with fraudulent activity like in traditional financial systems is not possible. In addition, the pseudonymous nature of Bitcoin led to its alleged adoption in criminal activity. Investigations show that prior to 2013 a lot of activity could be connected to the darknet economy. But since the regulatory frameworks started to be introduced, it became significantly harder to use Bitcoin unauthorized. Chain analysis improved significantly since then and the overwhelming majority of Bitcoin transactions have been happening in a more or less regulated space. Another cause of concern here is the rise of ransomware attacks in which the data is encrypted unless a ransom, usually in cryptocurrency, is paid. Despite BTC not being anonymous, it is still used by attackers.
Connected with the previous criticism is the continued proliferation of scams in crypto. The reason is the same: the area is not properly regulated yet, and users are less protected. An infamous example of a crypto fraud that made news was the 2020 Twitter hack. A number of high-profile Twitter accounts were hacked and messages promoting a fraudulent scheme were posted on their behalf. This is not to say that there is no chance to be reimbursed for losses if one fell victim to a scam. Law enforcement and cyber security agents these days treat cases of cryptocurrency scamming the same as with fiat money.
Adoption and Regulations
Bitcoin and cryptocurrencies in general are miles away from where they started in early days. Once it was more widespread and institutions started buying in, Bitcoin in particular has become more regulated. Most famously, Bitcoin is adopted as legal tender in El Salvador. This means that de jure it has an equal status to the US dollar in the nation: it is universally accepted for all kinds of transactions. Being regulated sometimes means being taxed, either as property, commodity or a capital asset, depending on the country. For example, in the US Internal Revenue Service (IRS) would consider Bitcoin a capital asset, while in the UK it is taxed as property. Since Bitcoin is not issued by any nation, the international regulation for it is defined by the Financial Action Task Force (FATF). They do not issue laws per se but define guidelines for national anti-money laundering and counter-terrorism financing measures.
Upcoming Technical Updates
Bitcoin is entirely open source and is developed with the help of contributions of developers worldwide. Despite being the most active development team, the developers of Bitcoin are not famous for having a long-term roadmap. Features that are considered for inclusion in a release are called Bitcoin Improvement Proposals.
Blind Merged Mining
One of the features put up for consideration is Blind Merged Mining, a specification of merged mining. This iteration would let Bitcoin miners maintain other networks and side chains without compromising their node resources or payouts. Side chains to a block could support arbitrary rules that would otherwise be impossible on the main chain. It can be used to improve the security of Lightning Network channels, for example.
Hashed Time-Locked Contract (HTLC)
Also known as HTLC, it is a script that allows programmable transactions. HTLCs on the main chain would allow for refunds to be made, and can be used to let open LN channels transfer BTC across each other.
Another proposal is worked on jointly with the developers of wallets. PayJoin will let users pay someone while including their outputs in the transaction, thus enhancing privacy and allowing to group up transactions under the same signature.
Bitcoin on Social Media
When will we hit the top? The 1st #Bitcoin cycle took ~400 days from halving to top in 2013. The 2nd cycle took ~33% longer to reach the top in 2017. If this cycle extends again & takes 33% longer, the top will be around April 2022. The real #Altseason is shortly after $BTC tops.
Crypto influencer Anthony Pompliano shared a fragment of Squawk Box in which Cathie Wood of Ark Invest talked about uses of Bitcoin. Not only is it used as a hedge against inflation, it can be a trustless money for those in nations with corrupt governments.
Hey @nayibbukele, Sweden was curious if you could turn-off your Volcano🌋? The central bankers have published new climate goals. Nutrition goals also coming soon.
Euronews reported that Sweden is sounding the alarm on the environmental impact of Bitcoin. However, Crypto Twitter is not impressed with the claims, knowing the strides made to make mining cleaner.
Which Bitcoin wallet is the best?
Before diving into Bitcoin after reading our Bitcoin beginner’s guide, make sure you have a proper cryptocurrency wallet to store it! Finding a wallet for Bitcoin is not a tough task, but choosing an optimal application or device is more important. Here is a list of toprecommendations from ChangeHero’s team:
Exodus (desktop and mobile). Its most prominent features include portfolio tracker, Trezor integration and in-app exchange. You can swap currencies with ChangeHero right in the Exodus wallet;
Atomic Wallet (desktop and mobile). This product embodies the idea of functionality and is packed to the brim with features;
Trezor (hardware). If you own a Trezor, you can swap your currencies right in the app with ChangeHero;
CoolWallet (hardware for mobile). It has all the software wallet essentials like history and balance tracker, with extra features like exchange (powered by ChangeHero) built in;
Coinomi (desktop and mobile). A reliable and convenient option for any platform.
How can you get Bitcoin?
How to buy Bitcoin instantly?
Getting Bitcoin on an exchange is something that can be recommended to users who already have some experience in trading. You should be ready to dedicate your time to verifying an account or deposit the funds into the exchange’s custody. A more approachable alternative to a trading platform would be an instant exchange platform. On ChangeHero you can buy Bitcoin with a credit or debit card and sell it in just 15 minutes at the best prices after a simple verification procedure.
Choose the country of residence, amount to buy and currencies. Proceed to the next step;
Check the currency of purchase and amounts. Provide a BTC address;
In the next steps, verify your phone address and card info. Pass 3D-secure verification;
Finally, to make a purchase pass the identity verification with a state-issued ID and a selfie.
What Bitcoin exchange to choose?
Why scour the market yourself when ChangeHero can do it for you? We monitor several exchanges and adapt to the differences between them to provide our customers with the best possible rates. ChangeHero is the go-to place for buying Bitcoin safely because we do not have the custody of your assets at any point: as soon as they are received, the exchange is processed and the result is sent to your wallet address — as easy as that.
Choose the currencies on the home page, amounts and the type of exchange. Provide your BTC wallet address in the next step and check the amounts;
Send in a single transaction the sum of crypto currency you will be exchanging. For a Fixed Rate transactions you have 15 minutes before it expires;
Sit back and relax. At this step we are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives;
As soon as the exchange has been processed, your BTC is on the way to your wallet.
If you ever run into any issues during your swap, our support specialists are always available to help you out in the chat or through the email: [email protected].
A Bottom Line
Back in 2008, Bitcoin became a breakthrough invention: a decentralized digital currency that works trustlessly without third parties. For the mainstream and the economy now, Bitcoin is the face of the cryptocurrency market. Thanks to this current bull run, it became more popular with larger investors and ordinary people alike and even gained legal tender status. Check out our blog for further reading after this Bitcoin beginner’s guide. If you prefer social media, find us on Twitter, Facebook, Reddit and in Telegram.
Frequently Asked Questions
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There’s only a couple of months left in 2021, and the crypto market is going crazy again. It is high time to ask yourself, “What is the next big cryptocurrency to invest in 2022?” Our new list of top cryptocurrencies to hold in 2022 is here to help you in your research! Key Takeaways There […]
There’s only a couple of months left in 2021, and the crypto market is going crazy again. It is high time to ask yourself, “What is the next big cryptocurrency to invest in 2022?” Our new list of top cryptocurrencies to hold in 2022 is here to help you in your research!
There is no single best crypto to buy or hold in 2022, as you could expect. It’s unlikely Bitcoin will give up its leadership yet so holding it goes without saying;
Nonetheless, Ethereum as well as its alternatives: Binance Smart Chain, Solana, Avalanche — will see a lot of use next year as well;
Other categories you could be looking at are Ethereum scaling solutions (Polygon), enterprise solutions (Stellar), privacy coins (Monero) and content platforms (Audius, Verasity).
Best Cryptocurrencies to Hold in 2022
Bitcoin needs no introduction: this is the first cryptocurrency protocol for decentralized peer-to-peer value transfers. Even if you are not deep into crypto, holding BTC is the most reliable call. 2021 started on a high note, at $29 thousand, and over the course of the year it more than doubled up to 115% at the moment of writing. On October 20, it reached a new ATH of $66,930.39, and many believe it is only the start to the second leg up of the bull run. Holding Bitcoin goes without saying — but what about maximizing profits and diversifying portfolio? Check out our ideas on what altcoins could become the next cryptocurrency to explode in 2022!
Ethereum at this point barely needs an introduction: it is a cryptocurrency platform second only to Bitcoin. Smart contracts, which make it programmable, enable a massive network of use cases: tokens, stablecoins, DeFi, non-fungible tokens. In 2021 so far Ethereum has beaten its all-time highs several times, most recently on October, 21, reaching $4,366.09. Its valuation increased by 470.71% in comparison to the opening prices on January 1, 2021. What makes Ethereum one of the best cryptocurrencies to buy in 2022? Aside from the organic growth that can fuel the long-term appreciation, there is the merger with Ethereum 2.0 coming that year. The merger will, most importantly, switch the network from Proof-of-Work to Proof-of-Stake algorithm. This will change the economics of the network, transferring governance from miners to stakers, as well as help make Ethereum more scalable and sustainable.
Binance Coin (BNB)
Prior to 2021, it was hard to imagine Binance Coin will become one of the main competitors to Ethereum. Binance Smart Chain (BSC) changed everything, providing an alternative to Ethereum which did not have exorbitant network fees. The success of DeFi on BSC was reflected in the BNB’s price: in comparison to the opening of 2021, BNB is 1200% up. It even broke its previous ATH on May 10 at $690.93. But if Binance is now in a shaky regulatory position, why is BNB in the top cryptocurrencies to hold in 2022? The developments in Binance’s team make it clear that BNB is in for the long haul: they are hiring top-class specialists in AML and compliance. We will have to wait at least until December and yearly address to learn more about what to expect from the Binance ecosystem in 2022. But even now it is clear that it will keep growing, giving BNB more use cases.
Another hit from 2021, Solana, has all chances to keep rolling and be one of the best cryptocurrencies to buy in 2022. Solana, like Ethereum and Binance Smart Chain, hosts decentralized applications and smart contracts, but has even lower fees and greater speeds. If you were impressed with the gains of previous coins, wait until you see how much Solana grew in 2021: 13,662%! It would take a miracle for such a pump in 2022 to be repeated but expecting a continuation of the uptrend is reasonable. Like Ethereum, Solana renewed its record price on October 25: $218.73. The trends in these cryptocurrencies are similar but not always, so to multiply gains it’s advised to diversify. There have been no announcements for major upgrades to Solana yet. The team now seems to be focusing on onboarding users and products and with the breakneck speed at which it is happening right now, the next stage may come as soon as in 2022.
Shiba Inu Coin (SHIB)
Okay, hear us out: meme coins showed their potential in 2021, so why not hold some for 2022? But then you might ask, why did the Shiba Inu coin make it into our top cryptocurrencies to hold in 2022? The Shiba Inu community is even more populous than most crypto communities, and it is the main driving force of SHIB. In 2021 SHIB gained an impossible 481,000%. Will Shiba Inu reach 1 cent if it keeps growing like this? Not to bring your hopes down but it would require an amount 2,7 times greater than the entire world economy in 2021. The latest version of the project’s WOOFpaper teases more updates to the NFT incubator and DEX. If all goes well, 2022 might as well be the year these major updates ship.
Avalanche is another programmable network which stands out thanks to its one-layer, three-chain architecture. Separating exchange, contracts and subnets to dedicated chains makes Avalanche fast and scalable. In 2021, Avalanche integrated SushiSwap and TrueUSD but the true breakthrough was not thanks to DeFi. In August, NFTs on Avalanche became even more popular, bringing in Jason M Peterson and Major Baseball League. Throughout the year, AVAX grew by 2,005% from $3.3 at the start to $69.43 at the time of writing. The concrete plans for 2022 are under wraps but at the same rate, AVAX will continue to be one of the top cryptocurrencies to hold in 2022.
In 2021, Matic Network, a Plasma Ethereum scaling solution, expanded its scope and became Polygon. Polygon SDK lets developers use Optimistic rollups and ZK chains, which are various types of scaling solutions for different applications. With the help of rebranding, Polygon token which kept the MATIC ticker, grew by 10,011% in 2021 so far. What about next year and why Polygon is one of the best cryptocurrencies to buy in 2022? Until the Proof-of-Stake shift, scaling solutions such as Polygon are the only way to use Ethereum at better transaction speeds and fees. The shift is a major undertaking and may not even arrive in 2022. But what if it does? Then either Polygon will present an opportunity for bear traders to make money or adapt and continue providing value for holders. Either way, a win-win.
Stellar Lumens (XLM)
Stellar Lumens is a fork which further improved and decentralized XRP’s model, and like the original it can be used in financial applications. Unlike with XRP, serving as a currency-agnostic intermediary between different fiat currencies is only one of possible uses of XLM. Lumens did not have absurd gains as some previous picks of the best cryptocurrencies to hold in 2022: it rose by 190% from the start of the year to date. However, there is a solid reason to keep an eye on this coin in 2022. Stellar Development Foundation (SDF), which is helping with the development and adoption of the Stellar protocol, is helping the Ukrainian government with the CBDC. The SDF also struck a few important partnerships, with Moneygram and Flutterwave, to offer instant money transfers and onboarding thousands of clients to Stellar. Securing a large user base will ensure longevity of the project, and news like this will surely keep influencing the XLM price in 2022.
Do not overlook privacy coins when picking cryptocurrencies to buy in 2022. With CBDCs rolling out everywhere and governments demanding regulation, privacy is more important than ever. Monero is one of the oldest and most reputable privacy coins on the market. This is because it is not backed by any corporation and has all privacy features enabled by default. Monero’s price in 2021 has not multiplied by thousands, either, gaining 81% so far. Its privacy features make it difficult to list it on exchanges, so speculation affects its price less. Monero does not have a defined roadmap for 2022 but its privacy-preserving properties make it a valuable asset for the world in which surveillance is encroaching on more and more facets of life.
You might have heard about Audius from the news about integration in social and entertainment platform TikTok. Audius is a blockchain-based music streaming service that really blew up in 2021. Blew up how much exactly? By a whopping 1,406%! Having started the year at $0.15 it is now trading for $2.27. NFTs and blockchain are changing the music distribution industry. It is never a bad idea to join in on the paradigm shift early, so AUDIO can as well be in our top cryptocurrencies to hold in 2022.
What Audius and other blockchain platforms are doing to the music industry, Verasity is doing to video streaming. As you could already guess, Verasity is a blockchain-based video streaming platform with particular focus on esports. The development of Verasity in 2021 accelerated the growth of the VRA token by 18,134%. In that time, Verasity delivered viewing rewards, CS:GO and Riot Games partnerships and, of course, NFTs. The reasoning behind VRA being in this top list of cryptocurrencies to hold in 2022 is the same as with Audius. Verasity rewards work with YouTube and Twitch but the main platform offering more and more with each update can cause its popularity to skyrocket.
How to Buy Them on ChangeHero?
You do not need to seek out the top cryptocurrencies to hold in 2022 all over the crypto exchanges and go through KYC on each of them. If you already have crypto, use it to buy them on ChangeHero, it’s a walk in the park:
Choose the currencies on the home page, amounts and the type of exchange. Provide your wallet address in the next step and check the amounts;
Send in a single transaction the sum of cryptocurrency you will be exchanging. Fixed Rate transactions have a 15-minute limit;
All done? Now we are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives.
The Best Rate transactions will use the rate current to the time when your funds arrive.
The Fixed Rate will use the rate at the time of step 1;
As soon as the exchange has been processed, your coins are on the way to your wallet.
ChangeHero’s customer support is available 24/7 in the chat on our website or through the email: [email protected].
There is no definitive answer to what is the best cryptocurrency to invest in 2022, because diversity is key. Anyway, we hope our list helped you understand what currencies you want to hold in 2022; we’d love to hear your ideas, too! Even more crypto projects are covered in detail in our blog. Feel free to follow our pages on social media: Twitter, Facebook, Reddit and in Telegram.
This article does not constitute financial or investing advice. No price prediction or forecast is guaranteed to provide exact information on the future price. Past performance is not indicative of future results. When dealing with cryptocurrencies, remember that they are extremely volatile and thus, a high-risk investment. Always make sure to stay informed and be aware of those risks. Consider investitions in cryptocurrencies only after careful consideration and analysis and at your own risk.
Ethereum Altair upgrade arrived on October 27, 2021 on the Ethereum 2.0 mainnet. Why was it so anticipated and what does it mean, explained in our new recap. Key Takeaways The Ethereum Altair upgrade is the first planned update to the Ethereum beacon chain (Ethereum 2.0). It was launched on Oct 27, 2021 at 10:56:23 […]
Ethereum Altair upgrade arrived on October 27, 2021 on the Ethereum 2.0 mainnet. Why was it so anticipated and what does it mean, explained in our new recap.
The Ethereum Altair upgrade is the first planned update to the Ethereum beacon chain (Ethereum 2.0). It was launched on Oct 27, 2021 at 10:56:23 UTC and introduced some changes to consensus and rewards and punishment;
The hard fork will require action from node operators and validators and will not affect end-users of Ethereum beacon chain;
The Ethereum community anticipates that this update will serve as a stepping stone for the merger of legacy Ethereum chain and Ethereum 2.0 and usher in the transfer to Proof-of-Stake.
What is Ethereum Altair Upgrade?
Proof-of-Work Ethereum chain has had eleven upgrades so far, with the London hard fork being the latest. However, this has not been the case with the Proof-of-Stake Ethereum chain until recently. Altair is the first scheduled update to the beacon chain of Ethereum (commonly known as Ethereum 2.0). It was performed as a hard fork, meaning once it is active, there is a new chain with new rules and old chain, which will die out.
When Will the Ethereum Altair Upgrade Happen?
According to the official blog post, Ethereum Altair upgrade will take effect in epoch 74240. In more common terms, this block activated on Oct 27, 2021 at 10:56:23 UTC. When will ETH 2.0 launch and Ethereum 2.0 merge with the main network? While this planned upgrade to the beacon chain warms up the merger development, exact dates of arrival are still up in the air. Optimistic estimates put the date of launch sometime in 2022.
What Will Change?
Ethereum Altair upgrade will bring several new features and rules to the Ethereum 2.0 chain.
Light clients (abridged copies of the blockchain) will be able to participate in core consensus;
Fixed bugs and cleaned up incentive accounting (i.e. rewards calculation);
More strict slashing parameters (for stakers that do not participate and validate properly). This can be crucial for the security of the network, incentivizing all nodes to work properly.
As can be inferred from the list of changes, they will only affect validators and node operators. What should an ETH holder do for the Altair upgrade? Ethereum holders and users do not need to do anything. Node operators and validators must upgrade until the deadline to keep working in the live version of Ethereum 2.0. How will ETH staking work after the Altair upgrade? The hard fork does not change staking fundamentally, so aside from some changes in calculations of rewards and punishments, nothing changes much in Ethereum staking for now. Altair does not make withdrawals of ETH stakes possible yet, so validators will have to wait until the merge.
News outlet Crypto Amb made an article raising and debunking concerns about the Altair upgrade. The only impactful fact is that 17% of the nodes remained in the old chain and might suffer the consequences.
Beacon Chain upgrade #1 tomorrow
The PoS upgrade, known as The Merge, will be the biggest upgrade in Ethereum’s history
The Altair upgrade will give the #ETH valuable experience to ensure that The Merge goes smoothly when it is ready for deployment in 2022
— ♻️ Minus Wells ♻️ XRP $10+ (@MinusWells) October 27, 2021
User MinusWells explained why Altair upgrade is so vital to the merger of Ethereum networks and transition to Proof-of-Stake.
Community members have already dubbed Ethereum Altair upgrade a “low stakes warm-up” for the merger with Ethereum 2.0. Since the current iteration of beacon chain represents how Ethereum will work in the future, it is vital to have at least one dress rehearsal. Did you like the breakdown? More news like this and informative guides can be found in our blog. Daily content and updates are routinely posted in our social media: Twitter, Facebook, Reddit and in Telegram.
The bullish sentiment that returned to the crypto market in Q4 is finally showing itself. Many stories this week revolve around a reinvigorated bull run in Bitcoin. This and more news in other topics are summed up in our new weekly crypto digest! Key Takeaways Bitcoin broke above $50,000 for the first time since July […]
The bullish sentiment that returned to the crypto market in Q4 is finally showing itself. Many stories this week revolve around a reinvigorated bull run in Bitcoin. This and more news in other topics are summed up in our new weekly crypto digest!
Bitcoin broke above $50,000 for the first time since July and above $1 trillion market cap since May;
New portion of Tether FUD emerged on Bloomberg. A report claimed the company backed USDT stablecoins with questionable assets, which was obviously denied;
JPMorgan and BitGo shared some evidence that institutional interest in cryptocurrencies is increasing, as whales ramp up purchases once again.
Dogecoin Discount: No Fees for DOGE Exchanges
Here is your reminder: the offer for DOGE exchanges with no fees attached lasts until Monday, October 11. Get it while it lasts!
Latest Crypto News Digest
Bitcoin This Week
Bitcoin is looking pretty bullish again having broken above $50,000 for the first time since July. The reason is entirely native to the market this time around: such is the effect of Uptober, simply put!
Latest Bitcoin News
Bullish action has also pushed the market capitalization of Bitcoin above $1 trillion for the first time since May.
Another week, another DeFi exploit: Fantom protocol Stake Steak was hacked and the native token STEAK plummeted from $5.18 to $0.95. The devs of the protocol warned the users to not consider this a dip and buy in, suggesting they might not make out of it easily;
Ethereum 2.0 is so close yet so far: a critical bug which put staked tokens at risk was urgently patched this Monday. Had the bug not been fixed, even trustful node operators could remove users’ Ether from the liquid staking pool;
Bloomberg BusinessWeek report this week alleged Tether is backing their stablecoin USDT with some questionable assets. The ones that caused particular controversy were billions in Chinese debt, Evergrande commercial paper (which Tether denied) and $1 billion lent out to Celsius, high-yield crypto lending protocol.
Business Crypto News
Mexican stock exchange Bolso Mexicana de Valores (BMV) is considering adding crypto-based financial instruments, according to their CEO. BMV has been in talks with local financial authorities about the possibility of listing crypto futures.
In a recent report, JPMorgan analyst Nikolaos Panigirtzoglou noted an influx of institutional interest in Bitcoin in comparison to gold. In his reasoning, failure of gold to react to the news of Infrastructure Bill, which includes a $1 trillion injection in the USD supply, made investors remember the inflation hedge narrative on Bitcoin, and is driving the bullish rally now.
Crypto News on Adoption
Crypto custodian BitGo executive Darren Jordan shared a similar observation on the Token 2049 conference in London. According to Jordan, corporate clients are repeatedly requesting handling allocation of a small percentage of their balance sheet into crypto assets.
Money transfer provider MoneyGram, previously known as Ripple’s largest partner, unveiled a partnership with Stellar Foundation. MoneyGram will utilize Circle’s USDC to settle payments and convert payouts to a user’s local currency.
Regulation & Politics Crypto News
NBA TopShot developer Dapper Labs has struck a partnership with Chainalysis to keep track of NFT transactions. In a comment to The Block, Naeem Bawla, Dapper Labs’ Associate Director of Compliance said “NFTs are one of the most exciting spaces in cryptocurrency, but they will only be successful in the long-term if we can ensure a safe environment for our customers”.
After a spree of global expansion events, in the light of regulatory crackdown, Binance has to step back from their progress. Particularly, on Friday the company announced via a blog post that South African users will not be able to use crypto financial products such as options, futures and leveraged tokens.
Social Media Digest
Video of the Week
What we had not mentioned was rounded up in the Davinci Jeremie’s recap: mining waterfalls in Columbia, DOJ cybercrime team and more!
Crypto News from Twitter
Huge news Dogecoin fans! As we work to accept online crypto payments, now you can buy @AMCTheatres digital gift cards (up to $200 per day) with Dogecoin and other cryptocurrency using a BitPay Wallet. Accepted on our web site, mobile app, and in theatres. https://t.co/hPubbeq4YGpic.twitter.com/dra7e23tc8
Our weekly highlight this time is Josh Olszewicz, popular YouTuber and trader with a no-hype attitude. Nevertheless, he can be very bullish, so if you don’t want to miss a certain moonshot, give him a follow.
This Week on the Market
How is the market this week? At the moment of writing the cryptocurrency news digest, the general stats are:
Total Market Cap: $2,315,119,013,923 (+13.02%);
BTC Dominance: 44.3%.
7d Change in Top Coins
At the moment of writing, the weekly change of the top currencies is:
Uptober is becoming a self-fulfilling prophecy, even for those who do not realize it. Are the whales going in or are they preparing a dump again? Time shall tell. Catch the next weekly crypto news digest in our blog. Follow ChangHero on Twitter, Facebook, Reddit and Telegram for daily updates and more content.
Happy belated Bitcoin Day, the day when BTC finally became legal tender. Is El Salvador the beginning of hyperbitcoinization? Our team reviewed news and opinions to deliver an answer to that. What is Hyperbitcoinization? Hyperbitcoinization is indeed a complicated sounding term, in addition to being quite a mouthful. So what is hyperbitcoinization? As it was […]
Happy belated Bitcoin Day, the day when BTC finally became legal tender. Is El Salvador the beginning of hyperbitcoinization? Our team reviewed news and opinions to deliver an answer to that.
What is Hyperbitcoinization?
Hyperbitcoinization is indeed a complicated sounding term, in addition to being quite a mouthful. So what is hyperbitcoinization? As it was originally defined in the Daniel Krawisz article with the same title, hyperbitcoinization is “Bitcoin-induced demonetization”. The idea is that fiat currencies are going to be losing value not only due to hyperinflation but also losing competition to Bitcoin. When people have the choice between a government-issued currency, which is by default uncontrollably inflationary, and Bitcoin, the assumption is that they will choose the latter. After all, Bitcoin is disinflationary, has hard-coded limited supply and is well suited for digital payments. As a result, in a post-hyperbitcoinization world, Bitcoin is conventionally adopted as a means of payment everywhere. Cross-border payments are also done using Bitcoin as a vehicle, and most importantly, it does not rely on any fiat currency to denominate its value. Can, or will hyperbitcoinization happen? For that to become reality, plenty of criteria have to be met first: most critical of all, Bitcoin adoption has to reach mass level. Thankfully for all proponents of Bitcoin, we can already see what could as well be the beginning of the process.
Bitcoin and El Salvador
In El Salvador Bitcoin has a legal tender status on a par with the US dollar since September 7, 2021. It will not be an understatement to say that this nation has become an unprecedented case that the sceptics and believers are watching with equal attention. The decision was not made out of the blue. It all started in 2018 with El Zonte, a coastal town which attracted investors who thought adding Bitcoin infrastructure will help the community. And help it did: according to the Vice documentary, locals received access to digital payments for retail and utilities. Fast forward three years, and the experiment continues on the national scale.
How Did the Government Prepare?
What is Nayib Bukele’s government doing for things to go smoothly? After all, they are still onboarding millions of people into a structure notoriously challenging even for the technically savvy.
Launching an official digital wallet Chivo with both USD and BTC (via Lightning Network) and instant conversions;
Providing one-time bonus payments of $30 in BTC for all users of the wallet. These $30 will not be convertible to USD;
Supplying 200 Bitcoin ATMs to as many locations as possible;
Purchasing BTC to the treasury (560 BTC at the time of writing);
Exempting Bitcoin transactions from capital gains tax;
Granting residency to foreign investors who put 3 BTC in the national economy;
And finally, building geothermally powered Bitcoin mining facilities.
From the government’s point of view, this move should lessen the reliance on the other legal tender, USD. But what do the people of El Salvador think?
What do the people of El Salvador think?
Apparently, the Bitcoin law is largely unpopular with the masses. Out of 1,281 respondents in the Central American University survey, only 32% expressed satisfaction with the passing of the law. 9 out of 10 respondents clearly stated a lack of understanding of Bitcoin, and 8 out of 10 people do not have plans to use it. The widespread scepticism is understandable, as the law was passed only in five days since submission. The Salvadorans have not had enough time to accommodate yet and now they might be exposed to BTC’s volatility. The opinions expressed in the survey are similar to what the International Monetary Fund has been warning El Salvador against. Volatility of cryptocurrencies can be harmful to national economies and households alike, and anti-money laundering laws are not enforced well enough, they claim.
Of course, the go-to account to learn about the progress of Bitcoin adoption in El Salvador would be the President Nayib Bukele. During the flash crash on September 7, they stacked their supply of Bitcoin on the national balance sheet. He even tagged the International Money Fund in the post. The IMF has been one of the most vocal critics of the Bitcoin law outside of the nation.
Not everyone is in favor of the means with which the Bitcoin revolution is made. Originally, Bitcoin is an anarchist statement, and seeing it adopted at the hand of the state rubbed people the wrong way. Regarding the story in the tweet, Mario Gomez was released hours after without any charges.
Other countries looking towards Bitcoin
Inspired by El Salvador’s example, other countries are starting to look into legalizing existing digital currencies. Which country uses Bitcoin? They usually do not go as far as making Bitcoin legal tender (yet) but recognizing digital payments and including them into the legal framework.
In late August, Cuba passed a law that would include payments in Bitcoin and other cryptocurrencies into the financial system. This law still elaborates that the only legal tender on Cuban soil is the Cuban peso. Unlike El Salvador, Cuba has a national currency, which incidentally is much weaker than the US dollar. If we were to understand hyperbitcoinization puristically, it can already be happening, not in El Salvador but in Cuba instead.
In Panama, congressman Gabriel Silva submitted a bill to regulate cryptocurrency payments, similarly to Cuba. There is no enforced currency in Panama, and the most commonly used one is the US dollar. Therefore, in the purest sense of the word, Panama may be a more fertile soil for hyperbitcoinization than El Salvador. The use of all currencies there is regulated by common practices, and the shift towards Bitcoin that Krawisz envisioned can happen more naturally.
Most recently, it became known that the law regulating cryptocurrencies in Ukraine that was drafted back in 2020, got passed. Ukraine joined the ranks of countries legally recognizing payments in cryptocurrencies on Sep 8, 2021. Yet again, it did not recognize Bitcoin as legal tender nor introduced a requirement for businesses to accept digital currencies. But it definitely was a step in the right direction for crypto businesses to operate safely and in a regulated manner.
What is hyperbitcoinization and is it already happening? We leave the answer up to you but hopefully the article provided you with enough proof. Obviously, it cannot happen in a day, but Bitcoin Day in El Salvador seems to already be inspiring more nations. However, the more widespread Bitcoin gets, the more it and monetary systems get tested against each other. If you want more of your crypto-related questions answered, do not sleep on our blog! Sign up for daily updates on our Twitter, Facebook, Reddit and Telegram.