Learning the friendly way

Decentralized Finance, or DeFi, opens up a whole world of financial services for you, ranging from straightforward banking services to complex financial instruments similar to those used by hedge funds and investment bankers. But here’s the twist: it all operates with cryptocurrencies instead of traditional cash.

In DeFi, you can stake your cryptocurrency in what are called smart contracts, which essentially means locking up your funds to earn interest, known as Annual Percentage Yield (APY). As a token of appreciation for staking your funds and providing liquidity, DeFi projects grant you special project-specific tokens. These tokens aren’t just a thank-you note—they give you a say in the project’s future decisions and carry some speculative value too.

Before we get started, let us first address several terms you are likely to come across in this piece:

• Financial institutions are your traditional banks
• Centralized exchanges are crypto exchanges that are operated by a managing company
• Decentralized exchanges are crypto exchanges that are not managed by one company and typically work in a peer-to-peer manner.
• DeFi is decentralized finance and refers to the industry in which regular users can engage various financial services requiring only an internet connection.

How smart contracts work in the DeFi space

A smart contract is a digital agreement that automatically executes once the predetermined criteria have been met. These computer codes are facilitated by blockchain technology and rely on the blockchain that they are built on. 

At the moment, your bank account from financial institutions might give you the right to a certain amount of monthly interest at a fixed rate. The deal is reached through a formal application procedure - which can take many days - that is handled by a mix of people and software and is acknowledged in writing. Once successful, the bank account is opened and you have access to the services.

A smart contract, on the other hand, uses a programming language (e.g. Solidity on Ethereum) to map out the mathematical aspects of an agreement - how much interest is due when and where it should be paid - while the underlying Ethereum blockchain executes the contract for a fee, making it transparent and unchangeable.

The ups and downs of the DeFi ecosystem

owever, it’s not all smooth sailing. DeFi can offer higher returns than traditional banks, which is quite appealing, but it also comes with higher risks. For instance, if something goes wrong with a smart contract, or you lose access to your private keys, there’s no safety net to catch you.

To dip your toes into DeFi waters, you’ll need a digital wallet like MetaMask and some funds from a cryptocurrency exchange. Once you’re set up, you can participate in various DeFi activities like lending or staking, each with its own set of fees depending on the network you’re using.

Additionally to the higher returns, DeFi tokens have also seen a rise in value, with some entering the top 20 and top 10 biggest cryptocurrencies based on market cap.

Furthermore, the value of DeFi tokens has surged, with some climbing into the top ranks of cryptocurrencies by market cap. This growth indicates a strong interest and a robust market presence, which can be exciting for anyone involved in the space.

However, it's not all smooth sailing. DeFi comes with its own risks that you should be aware of. For instance, executing smart contracts can get pricey, especially during times of network congestion. If you're looking to cut down on fees, you might want to explore alternatives to popular platforms like Ethereum, which can be more cost-effective.

Also, not all smart contracts are built the same. Some may have vulnerabilities that could put your funds at risk if not properly managed or if an error in the contract execution occurs. This highlights the importance of being careful with where and how you invest your digital assets.

Moreover, the decentralized nature of these platforms means that you’re in full control—which sounds great until you realize there is no safety net. If you lose access to your private key or make a transaction mistake, there's no customer service line to call for a do-over.

Ensure you vet various DeFi protocols before engaging

In general, more established Defi protocols with a higher total value of assets secured within them (also referred to as Total Value Locked, TVL) are safer. This is due to the fact that their code has been more thoroughly audited and "battle-tested".

Newer platforms will typically offer higher APYs in order to entice investors and build up liquidity. While this may sound lucrative, always ensure that you've done your research in order to understand exactly how the protocol operates and who is behind the project. 

Here are a few things to look out for:

• Has the protocol's code been professionally audited? 
• How long has the project been live?
• What is the platform's TLV? (The higher the better)

Finding your top Defi protocol

There are a number of "well-established" DeFi platforms that have proven reliable and trustworthy in recent years. While the risks are still prevalent, these are the most established options when looking to enter the DeFi space with the leading DeFi protocols.

Aave

Compound

Maker

Yearn Finance

How to use DeFi protocols (Get started in DeFi)

Jumping into the world of DeFi protocols can be quite an adventure. Here’s a simple guide on how to get started :

First, you'll need a digital wallet, and MetaMask is a popular choice. It's user-friendly and a common gateway for engaging with DeFi platforms.

Once you have your digital wallet, you'll need to move your cryptocurrencies into it. This is usually done through a transfer from a centralized exchange. For example, if you have a Tap wallet, you can transfer Ethereum (ETH) or other supported assets directly into your MetaMask wallet. Remember, DeFi protocols operate with cryptocurrencies, not traditional bank funds.

With your wallet set up and your funds in place, you can connect to any DeFi application that interests you. You can then engage with various features of the platform, such as depositing funds into a lending protocol. Keep in mind that actions like depositing, staking, unstaking, or withdrawing will typically involve network fees, which vary by blockchain.

That’s all there is to it! With these steps, you can start exploring the different functionalities and opportunities within DeFi at your own pace.

Understanding the risks associated with DeFi

While we've stressed that using tried and tested DeFi platforms provide a higher level of security, there are still risks associated with the DeFi space.

Below are some more steps you can do in order to secure your cryptocurrency assets and decrease the chance of losing your funds.

• Consider insurance, look into options for insuring your assets to help mitigate potential losses.
• Research the team behind the project, do your due diligence.
• Familiarize yourself with the platform's operations and features. For instance, if a platform advertises a certain return rate, such as 10% APY, delve into how they achieve those figures.
• Don’t commit more than you can afford to lose

Decentralized finance is one of the most innovative and promising areas in cryptocurrency. It is also a harsh environment, however, that demands some expertise before stepping in.

Before you place any funds into Defi protocols and become one of the many liquidity providers, ensure that you've fully vetted the project and considered the pros and cons of what it has to offer. Also ensure that you understand how the platform operates.

The DeFi space can be both lucrative and devastating, it is complex and requires a good amount of know-how. If you wish to get involved, take the time to really understand both the opportunities and the challenges it presents first. This way, you can engage with DeFi more cautiously and equipped with the necessary knowledge. And remember with Defi everything is at your own risk.
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As the Internet of Things becomes an increasingly popular topic of conversation, we are here to lay the foundations of what the concept of IoT really is. As people become familiar with blockchain and cryptocurrencies, it is only a matter of time before the IoT becomes deeply ingrained in our day to day living.  

What is the internet of things?

The Internet of Things refers to millions of physical devices that connect to the internet and collect and share data. These systems of interrelated computing devices can be as small as a pill or as large as an aeroplane and are able to communicate real-time data. This marks a prominent milestone in the evolution of the Computer Age.

This shift is possible due to a number of factors that have come into play in the last few decades, such as the decreased cost of connecting to the internet and broadband internet becoming more accessible. There is also the added advantage of more devices being built with sensors and WiFi capabilities and how these devices have reduced in cost becoming more accessible to everybody. These factors contributed to making the perfect storm for IoT to ignite. 

While the term was coined in 1999 by Kevin Ashton, the IoT era is believed to have only truly begun in 2008 when the world officially had more devices connected to the internet than people. 

An example of IoT devices

An IoT device is any natural or man-made object that can be assigned an Internet Protocol (IP) address and transfer data over a network. It can range from smart speakers like Amazon's Alexa and Google Next to a lightbulb, security camera or thermostat that are controlled by apps, from heart rate monitors to sprinklers, and everything in between. 

How does IoT work?

IoT technology is made up of physical devices that consist of networks of sensors, processors and communication hardware. These internetworking components are able to collect, send and act on the data they receive. 

The data is then analysed in the cloud through an IoT gateway or other edge device, or communicated to other related devices from where action can be executed. These processes are all automated, however, human invention can occur when setting them up, accessing data or giving the devices instructions. This technology essentially enables the remote monitoring, programming and control of specific data with minimal human intervention. 

Artificial intelligence (AI) and machine learning can also be implemented to assist in making data collecting processes easier and more dynamic.

In a practical example, an IoT device such as a thermometer will collect the data (temperature), this will then be collated and transferred through an IoT gateway or IoT hub from where the back-end system or user interface (e.g. app on a smartphone) will analyse the data and take action. 

IoT in domestic settings

Already seeing a huge advancement in home and office devices, the IoT movement on a domestic level is big and getting bigger. Home automation is fast becoming a very lucrative endeavour, with the market valued at $44.68 billion in 2020 alone. This ranges from lights to air conditioners to security systems, anything in the home that can be controlled by an app, including smart hubs connecting these devices, like TVs and refrigerators. 

IoT devices have also proven their worth among elders and people with disabilities, as they are able to provide assistive technology for sight, hearing or mobility limitations. 

IoT in industrial settings

While the smart home industry is booming, the industrial use cases are not far behind. IoT in business allows companies to automate processes and can help to monitor the performance of systems and machines in real-time, from supply chain management to logistic operations.

The market has already seen devices used to track environmental conditions (humidity, air pressure, temperature), prevalent in the designs of smart cities. They also prove their worth in the agricultural sector where farmers can use these devices to monitor the water levels of livestock or automatically order new products when the supply is about to run out. 

The future of IoT

Already over a decade into the movement, IoT is only going to get bigger. With a range of use cases that span almost every sector, it's no surprise that the projected value for the industry in 2028 is over $97 billion. Forecasts also predict that industrial and automotive equipment will present the largest opportunity for growth in the future, while smart home and wearable devices will dominate in the coming years. 

However, if the implementation of these devices is not done well this could present a new challenge to the industry. For example, if you have several smart home devices running in your home and need to log into several different apps to use them, this will hinder the growth of that sector. 

In conclusion: The IoT is the future of things

Any device falls into the category of IoT as long as it collects and shares data enabling smarter working with more control. If implemented correctly, IoT devices may well be a permanent fixture in our lives in the next decade, with analysts predicting that adoption and spending will grow exponentially in the next few years. 

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Market manipulation can be described as any attempt to interfere with the free and fair operation of the markets. This concept has become more popular as more businesses pop up, but is very much illegal and considered by law as fraud. Not exclusive to crypto markets, various acts of market manipulation can be found across all traditional trading sectors including the stock market.

There are many ways to practice market manipulation, such as falsifying numbers to attract investors' interest leading them to invest in the company and buy stocks that they otherwise would not have. Another method of market manipulation, especially crypto market manipulation, are pump and dumps, and that's exactly what we're covering in this article. 

What are pump and dump schemes? 

The term pump and dump can be traced back to as early as the 1990s when broker Stratton Oakmont artificially inflated the price of the stock he owned. Through false advertising and misleading statements, he created positive sentiment around his stock and then sold his cheaply purchased stock at a much higher price leading to great profits. Pump and dumps can occur across any industry and is most prevalent on stock exchanges and the digital assets space.

This may have been long ago, but pump and dump schemes quickly became popular in the cryptocurrency trading sector. Funny enough, pump and dumps within crypto were driven by John McAfee, creator of McAfee software security. John McAfee was not the only person to partake in pump and dumps, but he was the leader at the time.

He created trading groups where they would discuss which project to push funds into, driving the price up, and then selling for a substantial profit. People would see the price rise 200% in 15 minutes and buy in, and that's when McAfees' army would sell. This is similar to Oakmont, where he bought cheap stock and drove up the price so he could sell it for much more. 
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Are pump and dumps a scam?

Yes, usually they are a scam that only benefits insider traders, such as pump and dump group members. Even members of pump and dump groups can fall victim to this scam, as there is even insider trading within insider trading, meaning if they don't sell soon enough they will lose funds. In the traditional financial sectors, there are laws in place to prevent this problem.

How long does a pump and dump last?

That depends on what the pump and dump groups agree on, some only last a few minutes while others can last a few hours. The duration of a pump and dump is reliant on what the group agrees to. 

Are pump and dumps illegal?

In short yes, but not as broadly as they should be. Pumps and dumps in the fiat financial world are very much illegal and could lead to jail time. In the United States, it is a crime worthy of up to 5 years of incarceration or a $250,000 US dollar fine, or both, however, laws vary in different countries. So there are clearly rules and laws in place to deter fiat or stock traders from participating in pumps and dumps, but the same can not be said for cryptocurrency trading. 

This is another great example of why governments should be more open to accepting cryptocurrency as a legitimate currency. While there are no laws against pump and dumps in cryptocurrency, it is still extremely immoral. This can be seen in comparison to fiat, where it is considered illegal, so why not do the same for cryptocurrency?

We wish we could answer this, but at the end of the day, because of the lack of regulation or even consideration around crypto, pump and dump schemes have become increasingly more popular as people hope to make a quick buck off their fellow community members. Are pump and dumps illegal in cryptocurrency? No. Should they be? Yes.

As governments around the world work to establish a regulatory framework around cryptocurrencies we can only hope that pump and dump schemes make a feature.

Has Bitcoin had a pump and dump?

No, while Bitcoin has its own share of volatility, in the years since it's gained considerable value it has not been involved in a financial scheme of this nature. As its value is so high it would take a huge amount of investors and value to alter the market to this proportion.

Which coins are pump and dumps?

Generally, pump and dump coins are low market cap coins that are susceptible to volatility, meaning any money put in makes a big difference. However, pump and dumps can happen to almost any coin, the lower market cap coins are just usually the target in the crypto space.

Closing thoughts 

Pump and dump groups are a tricky topic within the cryptocurrency space, as some people greatly gain from these market tactics. Looking at it from an outside perspective, maybe as someone who saw a coin rising and was excited to get it, only to be left in the red 10 minutes later, this can be devastating.

Aside from the victims of pump and dumps, it is illegal within the fiat financial sector and should be considered the same regardless of whether governments see cryptocurrency as legitimate tender. Again, everyone is free to make their own decisions, we are simply here to educate you on what pump and dumps are, how they work, and what to look out for.

Cryptocurrencies have truly sparked a revolution, haven't they? It feels like just yesterday they were the secret of tech enthusiasts and visionaries. Now, they’ve transformed into a bustling digital marketplace that’s open to everyone. It’s incredible to see how businesses, both big and small, are embracing these technologies, eager to be part of this vibrant growth story.

Crypto technologies are here to stay. The era where crypto was only for a specific circle of people is over and more companies are taking advantage of this steadily growing market.  More large corporations than ever before are willing to develop and invest in the advantageous market of cryptocurrencies.

The crypto-world is blooming with new developments, and it seems that developers in this field can't stop pumping out innovative updates. Skilled developers and talented specialists in this field are making exchanges more accessible with their innovative work, by turning simple tasks into ease of access for users around the globe.

Crypto banking has been the go-to for many people in need of an alternative to conventional banking. With its lack of certain features, it still provides all that is needed with crypto limitations taken care of and more!  Here's a look at some advantages of using this service over fiat currency.

The first thing you'll notice when comparing bank services side by side is how similar they can be despite being different types altogether; one might not work without another if both suit your needs well enough

Crypto banking is a revolutionary new way of doing banking. It has many advantages and disadvantages when compared with regular fiat banking. Let’s explore in more detail and analyse what are the advantage and disadvantages of crypto- banking.

The advantages:

Independent system   

Cryptocurrency, as a whole, is set to be free of reliance on outdated and archaic centralized economies allowing users to manage every aspect of it while giving them full control over its finance. There are no strings attached to trap you into a quagmire of peculiar circumstances.

Low withdrawal fees

Banks are generally charging a fee whenever you withdraw cash from an ATM or the terminal, while crypto banking enables you to withdraw cash for free up to a certain amount.

Withdrawal fees with crypto banking are one of the best features and a major step towards the future, they charge users as low as 0.01% for their transactions no matter how big the amount you try to withdraw is compared to conventional banks.

Openness

Crypto banking platforms have created opportunities for people who were previously shut out of traditional financial services. If you've credit score is low, it'll be hard to find a loan that's affordable and most banks don't offer good interest rates on their saving accounts either.

Higher returns rate

Crypto platforms offer high-yield savings accounts with rates that far exceed traditional ones, enabling their users to beat the inflationary effects. They also provide secured loans without a credit check and other financial services for people in need who are not considered eligible elsewhere.

Currency exchange

So, you’re exchanging your currency for another one? Well, that could cost as much as 4% - applied to a large amount that could be as high as 40£ for every 1000£ that you are converting! Crypto banking, on the other hand, provides an opportunity for you to exchange between various cryptos with a commission as low as 0.1% and conduct rapid peer-to-peer transfers that can be, depending on your plan, free of charge.

The cons

Online-based   

Crypto banking is based and operated online. It’s all about convenience with a quick and easy app for your smart device to control any of your operations in real-time. However, they might not be the best option for seniors or customers who are challenged with using these online services as they often need more personal attention than what this system offers them.   

Assets volatility

While cryptocurrencies have gained in popularity over the years, they remain volatile assets. Thankfully you can now use fiat currencies and stable coins with many crypto banking providers in order to eliminate this risk.

Conclusion:

In conclusion, crypto banking became an essential part of the global financial transformation happening worldwide. In view of the advancement pace it evolved at, we wouldn’t be surprised to see it prosper in the coming years, and infiltrate every aspect of our everyday life.  

You’ve probably heard whispers about the "whales" swimming in the crypto seas. But these aren’t your typical marine mammals – they’re the ultra-wealthy folks and organizations holding massive amounts of digital currency.

What Exactly is a Crypto Whale?

So, what makes someone a crypto whale? There’s no hard-and-fast rule, but it generally comes down to owning a huge chunk of a coin’s total supply. We’re talking over 10% of the available coins for a particular cryptocurrency. That’s an ocean-sized wallet!

Take Bitcoin, for example. In May 2022, just four wallets controlled over 3% of all Bitcoin in existence. The top 100 wallets? They collectively held over 15%. Now that’s some serious whale power!

Bitcoin isn’t the only one with its share of whales. Dogecoin, the beloved meme coin, had a pretty wild concentration too. In 2022, just 15 addresses held nearly 52% of its total supply. Even Vitalik Buterin, the mastermind behind Ethereum, is considered an Ether whale thanks to his massive stake in the coin he created.

How Whales Make Waves

With that kind of buying power, whales can really make waves in the crypto marketplace. If a whale decides to sell off a giant chunk of their holdings, it creates a tidal wave of downward pressure on prices due to the sheer volume and lack of liquidity. Other crypto enthusiasts are always on the lookout for signs of an impending "whale dump," closely monitoring exchange inflows to spot potential dangers.

Here’s the twist, though – whales keeping their coins locked away actually reduces trading liquidity in the market since there are fewer coins actively circulating. Their massive idle fortunes are like icebergs weighing down the crypto ocean.

Tracking Whale Movements

Not every whale transaction is a sell-off. These giants could simply be migrating to new wallets, switching exchanges, or making monster-sized purchases. But you can bet experienced crypto folks keep a keen eye on those huge whale wallets, carefully tracking any ripples they make to navigate the ever-shifting tides of the market.

Whale Alert is a popular service that tracks these large transactions and reports them, often on Twitter. Whenever a whale makes a big move, it’s usually publicized quickly, giving everyone a heads-up on potential market changes.

Below is an example from Twitter from Whale Alert:

The Human Side of Whales

Behind these massive holdings are real people and organizations. Some whales are early adopters who bought into Bitcoin or other cryptocurrencies when they were cheap. Others are companies that have invested heavily in the belief that cryptocurrencies will continue to grow in value. For instance, Ethereum’s founder, Vitalik Buterin, is the biggest Ethereum whale because he holds a significant amount of the cryptocurrency he created.

How whales affect crypto's price

Price volatility can be increased by whales, particularly when they move a significant amount of one cryptocurrency in one go. For example, when an owner tries to sell their BTC for fiat currency, the lack of liquidity and enormous transaction size create downward pressure on Bitcoin's price. When whales sell, other investors become extremely vigilant, looking for hints of whether the whale is "dumping" their crypto (and whether they should do the same). 

The exchange inflow mean, also known as the average amount of a certain cryptocurrency deposited into exchanges, is one of the most common indicators crypto investors look for. If the mean transaction volume rises above 2.0, it implies that whales are likely to start dumping if there are a large number of them using the exchange. This can be viewed by regular crypto traders as a time to act before losing any potential profit.

How whales effect liquidity

When it comes to learning about whales and liquidity, one must remember that while whales are generally considered neutral elements in the industry, when a large number of whales hold a particular cryptocurrency, instead of using it, this reduces the liquidity in the market due to there being fewer coins available. 

What crypto whales mean to investors

In terms of the relationship between whales and investors, one must remember that there are various situations in which a person may transfer their cryptocurrency holdings. It's worth mentioning that moving one's assets doesn't always indicate that you're selling them; they might be switching wallets or exchanges, or making a major purchase.

Occasionally, whales may sell portions of their holdings in discrete transactions over a longer period to avoid drawing attention to themselves or generating market anomalies that send the price up or down unpredictably. This is why investors keep an eye on known whale addresses to check for the number of transactions and value. This is not necessarily a task that newbie investors need to actively be involved with, however, understanding the terms and how whale accounts can affect the market is recommended.

Why Whales Matter

Whether you love them or hate them, whales are a formidable force in the crypto world, shaping its dynamics in profound ways. These giants, whether they’re creators, collectors, or traders, have a tremendous impact across the digital waters. When they make a move, it can trigger monumental swells that ripple through the entire market.

By understanding whale activity, anyone involved in cryptocurrency can better navigate these choppy waters. Staying informed about whale movements helps both newbies and seasoned traders make smarter decisions and stay afloat in this ever-changing space. Keep an eye on these behemoths; their actions can significantly influence your crypto journey.

While tracking whale activity can offer valuable insights into the cryptocurrency market, it's important to complement this knowledge with expert advice. Consulting with a financial advisor can help you navigate the complexities of investing and ensure your strategies align with your personal financial goals and risk tolerance.

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Cryptocurrency whitepapers are detailed documents that outline the project's intentions, products, and infrastructure. While there isn't a rule on what needs to be included, most projects aim to share as much information about how the project aims to succeed in the hopes of building investors' trust, and interest.

Some of the topics typically covered include a summary of the project's team, goals, products, features, and tokenomics. When researching a blockchain or cryptocurrency project, whitepapers are a very good place to start.

What is a whitepaper?

A typical cryptocurrency whitepaper is usually a report or guide that teaches its readers about a certain topic or problem. As an example, developers might make a whitepaper covering their software to inform users about what they are constructing and why.

In the crypto space, a whitepaper is released by a project and assists in outlining the technical guidelines and core features of the project. While many whitepapers focus on specific coins or tokens, they can also be concentrated around various types of projects, like decentralized finance (DeFi) platforms, for example.

Cryptocurrency whitepapers will typically consist of statistics and diagrams outlining the project's core date, as well as the governing structure of the project, the team involved in creating and leading it, and their roadmap (current and future development plans).

What value do crypto project whitepapers serve?

Despite not being worth a monetary value, whitepapers play an important role in the crypto space. While there are no official criteria for creating them, whitepapers are integral to investors, researchers, developers, and industry insiders.

A great place to start for anyone interested in a project is to read through the whitepaper. If you're considering investing, it's best to meticulously read through it again. Whitepapers often provide insights into the project's potential red flags and a means to monitor whether they are sticking to their forecasted timeline.

A number of blockchain projects that have crashed displayed subtle warning signs in their whitepaper, like promising a deliverable without providing any evidence on how it will be executed.

How does one make a cryptocurrency whitepaper?

There are no official rules or outlines that projects need to follow when creating a crypto whitepaper, each blockchain project may determine what is best for that individual situation. As mentioned earlier, these are often the first official documents outlining the project to potential investors, so thorough and informative content depicting the project's structure, goals, and roadmap is best included.

Whitepapers should always be neutral, and avoid persuasive language or making too many promises. This is essentially a "business plan" in the crypto sense released to investors or the public prior to launching.

What info is included whitepaper?

Objectives

Whitepapers are created by founders to provide a comprehensive overview of both the project and the goal. For instance, Bitcoin's whitepaper describes the project's core objective as "A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution."

While Ethereum's whitepaper describes its intention as "The intent of Ethereum is to create an alternative protocol for building decentralized applications."

In a good cryptocurrency whitepaper, the project will outline what specific problem it aims to solve, and how it will improve various aspects of people's lives. Be cautious of projects that promise the world but have little in the way of evidence to back these claims. In the ICO boom of 2017, thousands of projects overpromised and underdelivered (if they delivered at all).

Blockchain specifications

Whitepapers will typically include how the cryptocurrency will work and function in the greater crypto ecosystem. This might outline technical aspects like the consensus mechanism the blockchain will utilize and how the decentralized aspect of the network will function.

Tokenomics

Another core piece of information that should be included in a project's whitepaper is the tokenomics. This will include information on the token, how it will be allocated, whether will it participate in token burns, or any incentive mechanisms.

Roadmaps

Roadmaps (a project timeline)are not just useful to see how a project aims to deliver on its objectives, but also provide insights into whether the project can keep up with its promises. While missing a deadline isn't a deal breaker in the crypto space, being open and communicating why is important.

Readability

A well-articulated whitepaper will typically be written in a manner that anyone can understand them. However, its important for the new blockchain project to also include certain technical specifications to provide evidence of the project's competence. Anyone can write a whitepaper, it takes technical know-how to create a blockchain platform.

Tips for reading a cryptocurrency whitepaper

• first and foremost, ALWAYS read a project's whitepaper before investing
• read whitepapers with a pinch of salt, they must be neutral and not over-promise
• Look into the team members and their experience in the crypto and blockchain realm
• a great idea doesn't necessarily mean it will be used or adopted
• look for technical explanations that showcase the project's understanding

Examples of crypto projects’ whitepapers

The Bitcoin whitepaper (2008)

The instigator of the entire cryptocurrency industry, Satoshi Nakamoto, an anonymous individual or group, published the Bitcoin whitepaper in 2008. The paper is called "Bitcoin: A Peer-to-Peer Electronic Cash System."

The whitepaper explains how Bitcoin can be used as a more efficient and decentralized form of money, outside the traditional banking model. It gives technical explanations of how the peer-to-peer Bitcoin network allows users to send digital currency without intermediaries. The whitepaper also outlines how the Bitcoin network is resistant to censorship and double-spending attacks.

The project launched two months later in January 2009.

The Ethereum whitepaper (2014)

While Bitcoin launched the crypto industry, Ethereum played a pivotal role in the development of the blockchain space. The Ethereum whitepaper was published in 2014 by a young developer named Vitalik Buterin and titled "Ethereum whitepaper: A Next Generation Smart Contract & Decentralized Application Platform."

In the Ethereum whitepaper, Vitalik outlines how the platform's intentions differ from Bitcoin's. The whitepaper outlined how the platform would allow developers to create and launch decentralized applications (now commonly known as dapps) and included technological solutions that backed these goals, such as the Ethereum Virtual Machine and smart contracts.

In conclusion

Crypto whitepapers are not legally regulated, meaning that anyone can write one. Although a cryptocurrency whitepaper should provide readers with an understanding of what the project plans to do and how, it's crucial, if you're interested in a particular project, to consider red flags and risks when reading through the document.