Learning the friendly way

Investing is a great way to grow your wealth and reach financial goals, but it is important to understand the potential risks as well as the rewards. Knowing how to identify capital gains and losses in investments is essential for any investor who wants to make informed decisions about their money. 

Gains and losses will determine whether or not an investment has been successful, so understanding them is critical to making wise choices when investing. Not only that but being able to recognize capital gains and losses can help investors decide when it’s time to get out of an investment before they incur too much damage. 

By learning to spot a gain or loss quickly, investors can protect their funds from unnecessary harm while reaping the benefits of investing. Here we break down how to calculate capital gains and losses.

The basics: how to calculate capital gains/loss

Investors will need to first identify the original cost or purchase price of the investment in order to calculate the percentage capital gain on an investment. You can get this from your broker, or any electronic trade confirmations you might have received. 

The next step is to subtract the original cost of the same investment from the selling purchase price (current value) to arrive at the gain or loss amount. If the amount is negative, this will indicate a loss while a positive amount will illustrate the profit. 

Then take this amount (the gain or loss) and divide it by the original purchase price. Multiply this by 100 and this will establish your gain or loss as a percentage.

Gain/loss ($ amount) = selling price - purchase price

Gain/loss percentage = [(selling price- purchase price) / purchase price] x 100

When the market value of an investment is lower than its cost basis, leading to a negative percentage return, it constitutes a loss on that particular asset.

When the market value or selling price surpasses your initial investment, you'll get a positive percentage that reflects this gain.

Why calculating gain/loss is important

Calculating the loss or gains you've made on an investment is crucial not only for staying on top of your financial situation but also when it comes to monitoring your investment strategy. If you are continuously making losses on an investment it might be time to change course, however, you will only know this by doing the calculations. 

Calculating the capital gains or losses on an investment as a percentage is important because it shows how much was earned as compared to the amount needed to achieve the gain.

Additionally, calculating the gains or losses of an investment are important when calculating any capital gains tax. Having a clear understanding of the financial situation will ensure that you are not underpaying or overpaying on capital gains tax. Be sure to check the capital gains tax rate in your jurisdiction as this will change from area to area.

Additional aspects to consider

As with anything, there are additional costs to factor in. For investments, this might be commissions, broker fees, taxes, etc. Below we look at how to factor in transaction costs, dividends, and trading fees.

Transaction Costs

Take your final gain/loss amount and subtract and transaction costs incurred from this amount.

Gain/loss ($ amount) = (purchase price - selling price) - transaction costs

Dividends

When calculating your gains, any additional income or distributions should be factored in. Dividends, whether from specific stocks or mutual funds, are the most common form of investment income and are paid to investors on a per-share basis. Not all shares pay out dividends so be sure to confirm this prior to making the trade.

Say an investor owns 100 shares and the company pays out $5 per share annually, this equates to $500 in dividends in a single year. Let's say that each share was bought at $20 and is now worth $40.

Gain/loss percentage 

= [((selling price - purchase price) + dividends) / purchase price] x 100

= [(($4,000 - $2,000) + $500) / $200] x 100

= 125%

Therefore, the dividends payout increased the gains on this investment by 25%. In this example, we have not included trading fees, commissions, etc.

Trading fees

Trading fees or brokerage fees are often an unavoidable aspect of trading and should be factored into your investment calculations. Using the above example, let's say the broker charges $50 in fees for its services and any transaction costs incurred. This amount will need to be subtracted from the original gain/loss amount before dividing it by the original purchase cost.

Gain/loss percentage 

= [((selling price- purchase price) - fees) / purchase price] x 100

= [(($4,000 - $2,000) - $50) / $2,000] x 100

= 97.5%

Here the trading fees dropped the investment gains by 2.5% from 100% to 97.5%.

Capital gains tax rate and mutual funds

Calculating capital gains or losses in a mutual fund is important for several reasons, but one key example is for tax purposes, known as capital gains taxes.

When an investor sells shares of a mutual fund, they may realize a capital gain or loss, which is the difference between the sale price and the purchase price of the shares. If the sale price is higher than the purchase price, the investor realizes a capital gain, and if the sale price is lower than the purchase price, the investor realizes a capital loss.

Capital gains are typically taxable, meaning that the investor must pay capital gains tax on the amount of the gain. However, if the shares were held for more than one year before being sold, the gain may be taxed at a lower rate known as the long-term capital gains rate, depending on the specific tax laws in your country. In contrast, capital losses can be used to offset capital gains, reducing the investor's overall tax liability.

Calculating capital gains or losses in a mutual fund can be more complex than for individual stocks, as mutual funds may buy and sell securities frequently, resulting in multiple tax lots with different purchase prices and holding periods. To accurately calculate gains or losses, investors must track each tax lot and determine the cost basis of each lot, which is the original purchase price plus any reinvested dividends or capital gains distributions.

Failing to properly calculate capital gains or losses on one's investments can result in overpaying or underpaying taxes, which can be costly and potentially lead to penalties. Therefore, it is important for investors to carefully track their mutual fund investments and accurately calculate their capital gains or losses for tax purposes.

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Since Bitcoin was launched in 2009 there has been an ongoing wave of alternative cryptocurrencies entering the crypto market created to build on what the original cryptocurrency (and blockchain technology) can do. While Litecoin and Ethereum differ vastly in their design, one similarity is that they were both created to improve on so-called weaknesses in the Bitcoin network.

In this piece, we’re taking a look at both Litecoin and Ethereum individually, covering everything from concept to market integration, as we explore Litecoin vs Ethereum.

The Litecoin network

Litecoin is a digital currency created from a hard fork off of the Bitcoin blockchain. The cryptocurrency was designed to be a "lighter" version of the original cryptocurrency (hence the name) and to provide a more efficient peer-to-peer digital cash. Litecoin (LTC) is the native coin to the network. 

With similar coding, the Litecoin team made several changes to their blockchain to ensure that it was faster and more cost-effective. It was never designed to overtake Bitcoin, merely to offer an alternative and complement the Bitcoin network.

Created in 2011, Litecoin was launched by a former Google engineer and MIT graduate, Charlie Lee. Lee, alongside a team of developers, increased the block size as well as its total supply. Litecoin has a max supply of 84 million coins. 

Transaction per second

Today, the Litecoin network can process 56 transactions per second compared to Bitcoin which can do 7 transactions per second (outweighing Ethereum which can currently do 30 transactions per second, expected to increase greatly with the launch of ETH 2.0).

Transaction fees

Litecoin also trumps both cryptocurrencies when it comes to lower transaction fees, charging a minute fee that is not subject to fluctuations. Most cryptocurrencies' transaction fees fluctuate due to demand on the network, increasing the fees when the network is busy.

Block size

The network also reduced the block time, meaning the amount of time it takes to validate a transaction. Litecoin transactions take 2.5 minutes on average, whereas Bitcoin transactions take 10 minutes. In conclusion, a Litecoin transaction can be processed at a lower cost, four times faster, and with 3% of the energy consumption.

Mining Process

While Litecoin makes use of the same Proof of Work mining consensus as Bitcoin, it uses another hashing algorithm known as Scrypt that requires specifically designed mining software and hardware. This is the same setup as Dogecoin, allowing miners to mine both cryptocurrencies simultaneously. 

The Ethereum blockchain

Ethereum is a decentralized platform that allows developers to create their own decentralized applications (dapps) and smart contracts. Ethereum is well-known for its neutrality and immutability features, contributing to its effectiveness as a platform for developers to launch new projects. On the blockchain platform, it uses Ether (ETH) as its native cryptocurrency.

Ethereum was created to leverage the open-source nature of Bitcoin and bring greater innovation to the cryptocurrency industry. Providing a platform on which developers can create new blockchain projects has led to a large number of new cryptocurrencies and the inclusion of many industries far beyond the finance sector. 

Transaction fees

Ethereum uses ETH to fuel all operations on the network, requiring users to pay what are known as "gas fees" to facilitate any Ethereum transactions. These gas fees are designed to compensate miners for the computational power required.

These fees fluctuate when the network is congested, often leading to exorbitant prices for users wishing to implement smart contracts or send funds across the network.

Smart contracts

Smart contracts are digital agreements that automatically execute once certain criteria are met. When the smart contract is created, the agreement and criteria are written into its code, and once the criteria are met, that contract will automatically execute.  

Total supply

Due to the nature of the Ethereum blockchain providing a platform on which users can build and develop, the cryptocurrency does not have a limited supply of tokens. With no cap, the network can continue creating tokens as required and developers can continue using the platform to execute operations and build apps. 

Ethereum does have a limit on the total number of new coins that can enter circulation each year. Its supply growth model ensures that no more than 18 million coins can be released per annum.

Mining process

Currently, the Ethereum network uses a Proof of Work mining consensus, however, it is in the process of moving to a Proof of Stake consensus, expected to launch at the end of this year. The new version will use the same cryptocurrency (ETH) but adopt a more sustainable method of validating transactions and creating new coins. 

Which is better: Litecoin vs Ethereum

While Litecoin provides a peer-to-peer form of digital cash, Ethereum offers more than just a coin, it provides a platform. When it comes to functionality, Ethereum takes the cake.

However, when it comes to executing fast and cheap transactions, and in terms of scarcity with its limited supply, Litecoin provides a better blockchain technology alternative.

When it comes to Litecoin vs Ethereum and which cryptocurrency is better, one must first observe their intentions. Are you looking to build dapps or for a quick and cheap means of sending funds across the globe?

Both networks have avid supporters and great teams behind them, so when deciding which cryptocurrency to buy in consider your own goals and how these two networks align with them, or seek investment advice from a professional that can help you with making an advised decision.

If you're looking to earn extra money from anywhere online you've come to the right place. Making money online has certainly become more accessible and easier over the years, and in this blog, we're reviewing several ideas to do so without having to invest.

Whether you're looking to make some money on the side, or as a full-time pursuit, remember that as with most things in life: consistency is key. On this page, you'll find a number of beginner options requiring no particular skillset (only a bank account) for you to look into, relevant everywhere from the United Kingdom to the European Union to Australia. Each method varies in financial contribution, which we've highlighted at the end with a rating of the start-up costs.

Top 5 ways to make money online for beginners

1. Affiliate marketing

Affiliate marketing involves an individual earning money through promoting another business's product. This can be done through your own platform which might range from a blog to a website, social media, email campaigning or simply Google Ads. 

All you need is a working internet connection, a bank account and a reliable browser. Each time a friend or family clicks and signs up for the product, you bank a commission. 

Many companies these days offer this service, try to find one that you and your network might be interested in and see the opportunities that they present. 

Start-up Costs: $

2. Dropshipping

This will require a substantial amount of effort, however, the returns will be that much greater. Dropshipping involves selling a product online that you do not need to keep an inventory of, instead, the company that you are buying the goods from sends them directly to the customer. 

You act as the middleman between the manufacturer and the consumer and make money from the margin that you add. The start-up costs will be for your online website and marketing. 

Start-up Costs: $$

3. Freelance your skills

You can hire out your skills on sites like Upwork or Fiverr. Users create profiles expressing their skills, anything from writing to graphic design to music creation, and can apply to jobs requiring these skills. 

These sites will typically allow employers to connect with employees, and once the work is completed the funds are deposited directly into your account. This is also a great way to start a side hustle in your area of expertise without having to tuck into your savings.

Start-up Costs: zero

4. Explore the world of cryptocurrencies

Engaging with cryptocurrencies has gained significant attention in recent years. Before diving in, it’s important to educate yourself thoroughly to grasp the complexities involved. Our blog section on how to learn about crypto is a great place to begin. The cryptocurrency market is known for its high volatility, which presents both risks and opportunities.

Whether you're active daily or only occasionally, understanding the landscape is key. To get started, consider signing up for a reputable platform like Tap, which can help you manage your funds securely.

Start-up Costs: $$

5. Participate in online surveys

Online surveys are a popular way for beginners to make money online. Companies are always looking for feedback on their products and services, and they are willing to pay for it. There are several websites that offer paid online surveys, such as Swagbucks, Survey Junkie, and Toluna.

To get started, simply sign up for an account, complete your profile, and start taking surveys. You'll earn points or cash for each survey you complete, which can be redeemed for gift cards or PayPal payments. Keep in mind that surveys may have specific demographics, so you may not qualify for every survey. However, with some patience and consistency, you can earn a decent amount of extra income in your spare time.

Start-up Costs: zero
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Earn money online from anywhere in the world

Of course, this list is only a small portion of the ways you can make money online, simplified down to the top 5. If you have more time at your disposal you can engage in market surveys, beta testing, becoming a virtual assistant, or even coaching. 

The opportunities are endless, with a wide range of start-up costs, time management, returns and the amount of effort required are to be considered. Ensure you do adequate research in order to learn about your next venture before diving in. At the end of the day, anyone can earn money online, the first step is just to get started. Good luck, may you have only lucrative experiences.

5 tips on how to manage your money 

Now that you’ve established your income stream/s, here are 5 tips on how to manage the money you’re making. Whether you’re doing this as a side hustle or a full time job, consider implementing the following 5 steps in order to build your finances. . 

1. Build an Emergency Fund

Just like in personal finance, building an emergency fund is crucial for making money online. This fund will act as a safety net in case you hit a rough patch, and it will allow you to continue your online work without financial stress.

2. Create a Budget

Budgeting is another essential aspect of making money online. Creating a budget will help you keep track of your income and expenses, and it will allow you to make informed decisions about where to allocate your resources.

3. Focus on Your Niche

To make the process of making money online more enjoyable consider focusing on a specific niche that you are passionate about. Whether it's writing, graphic design, or web development, become an expert in your field and provide value to your clients.

4. Network and Build Relationships

Building relationships with other professionals in your industry is a valuable step when making money online. Networking can help you find new clients, build your reputation, and even lead to new business opportunities.

5. Stay Consistent and Persistent

Making money online takes time and effort, and it's important to stay consistent and persistent. Set realistic goals for yourself, create a schedule, and stick to it. Remember that success doesn't happen overnight, so don't get discouraged if you don't see results right away.

So what are you waiting for? 

Getting paid in cryptocurrencies has opened the global gig economy to endless opportunities. Gone are the days of needing to be in the same country, or even on the same continent, as your employer. Cryptocurrency jobs are not only more accessible but also more acceptable.

In this article, we’re breaking down where you can find jobs that specifically pay in cryptocurrencies. Before we do though, let’s touch base on the advantages the new digital currency realm is offering. 

The Advantages Of Being Paid With Blockchain Technology

The ever-evolving blockchain industry is now integrating cryptocurrencies into traditional job markets, from temporary gigs to full-time jobs, anyone can now get paid in crypto.

The decentralized world of cryptocurrencies provides many demographics with many advantages. For employees, these advantages allow the job market to be blown wide open as international payments are now easily accessible and don’t come with high transaction costs and delays. 

Due to the nature of crypto transactions, payments can be executed in a matter of minutes with minimal transaction fees offering a quick and cost-effective solution to moving money across borders. The minimal transaction fees also allow freelancers to take on many smaller projects, an opportunity otherwise impossible with international fiat transactions. 

Arguably the biggest advantage to cryptocurrency jobs is that anyone anywhere can now work for anyone anywhere, as borders are no longer a consideration. With many freelancers turning to remote work after the pandemic, the opportunity to work on international projects and be conveniently paid for doing so has increased dramatically. 

No matter your skill set or ability, there is likely a business out there willing to hire you.

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Where Job Seekers Can Connect With A Crypto Job Board

1. LaborX

LaborX is a job board-style website that connects employers with employees, covering everything from small temporary jobs to full-time ones, from data scientists to marketing managers. The platform also offers a wide range of cryptocurrencies as payment options. 

LaborX is owned and operated by a blockchain company that also offers HR software solutions, which makes it feel more accountable and solid. 

2. Jobs4Bitcoins

Despite what the name suggests, Jobs4Bitcoins offers a range of crypto-paying jobs. Run as a Reddit channel, r/Jobs4Bitcoins, the forum allows anyone to post a job they require or skills they can provide. 

While not run in the traditional job-seeking website sense, the opportunities for finding work and self-promotion are endless. There is obviously no vetting of employees or employers, however, so bear this in mind when engaging on the platform.

3. Blocklancer 

Blocklancer matches job seekers with job providers and pays in Ethereum. If you’re not fond of Ethereum, no problem, you can easily trade it for another cryptocurrency or fiat currency through the Tap app once you have received the funds. 

The platform covers a wide range of jobs, from research analyst to content creator to experts in the field of blockchain and ICOs. It also offers an ​​option allowing users to help mediate disputes. 

4. Bitfortip

If the formal job market is not what you are looking for, you can earn tips in Bitcoin for offering suggestions. Not only Bitcoin, you can also earn Bitcoin Cash, NANO, and Tezos.

Users post their questions and then should they find your idea or suggestion helpful, will tip you. 

5. PompCryptoJobs

PompCryptoJobs was created to connect job seekers with providers within the crypto space. The platform caters to an extremely wide range of fully-paid crypto positions, from writer to product designer to data scientist. 

The platform is professional, neat and informative, and is used by some of the biggest companies in the crypto space. 

Whether you're a research analyst, marketing manager or data scientists, there are plenty of job opportunities that pay in crypto.

Final Thoughts: How To Get Paid In Crypto

If you’re unsure on how to go about getting an account that enables you to be paid in Bitcoin or other cryptocurrencies, look no further than Tap.

Tap offer to freelancers and self employed crypto accounts, enabling you to receive payments in cryptocurrencies. When creating an account, you will immediately gain access to a number of crypto wallets where you can access the individual wallet addresses. Simply send the wallet address to your employer and the funds will clear in minutes (depending on the network). 

Cryptocurrencies derive their value from supply and demand, with the buyers and sellers playing an enormous role in the market's liquidity, and ultimately, success. This rings true for stocks, commodities and forex markets too, essentially any asset markets with trading volumes.

Anyone participating in these markets will have been a maker or a taker at some stage, most likely, both. In this article, we're breaking down the concept of makers vs takers, exploring their vital role in the market and large quantities of these result in stronger exchanges. 

Liquidity Explained

Before we dive in, let's first cover an important concept: liquidity. Assets can sometimes be described as liquid or illiquid, this simply refers to how easily the asset can sell. Gold is a prime example of a liquid asset as anyone could easily trade it for cash without any hassle, while a glass statue of your neighbour's cat would be an illiquid asset as the chances of anyone wanting to own it are slim (except for the neighbour, maybe). 

Building on this, market liquidity indicates how liquid a market is. A liquid market means that the asset is in high demand, traders are actively looking to acquire the asset, while also having a high supply, meaning that traders are actively looking to offload the asset. An illiquid market then means that there is low supply and demand, making it difficult to buy or sell the asset for a fair price.

In a liquid market where there are many traders looking to buy and sell an asset, the sell order (ask price) tends to be in the same region as the buy order (buy price). Typically, the lowest sell order will be the same as the highest buy order, creating a tight buy-ask spread. 

Now that we've covered liquidity, it's time for makers vs takers. 

What Is The Difference Between Market Makers And Market Takers?

As mentioned above, any successful exchange requires a fair amount of makers and takers. Let's explore the difference between the two below. 

Market Makers

Exchanges typically use an order book to conduct trades. The order book will store offers to buy and sell as they come in, and execute the trades when the criteria are met, i.e. someone could create an offer that says when Bitcoin reaches $40,000, buy 4. When the BTC price reaches $40,000, the order book with automatically execute this trade. 

In this case, the person creating this buy order is known as a maker. They are essentially "making" the market by announcing their intentions ahead of time via the order book. While many retail investors are makers, the field is typically made up of big traders and high-frequency trading institutions. 

A market maker is a liquidity provider. ‍

Market Takers

Market takers are then liquidity "takers", removing liquidity from the market. Takers create market orders that indicate to the exchange that the trader wants to buy or sell at the current market price. The exchange will then automatically execute the trade using a maker's offer.

A taker is a trader filling someone else's order. Market makers create offers for the order book, making it easier for users to buy and sell, while market takers exercise this liquidity by buying the asset. 

What Are Maker-Taker Fees?

You might have heard of maker-taker fees before, this makes up a considerable amount of how exchanges generate an income (after all, exchanges are businesses that need to make money). When an exchange matches a maker and a taker, they will take a small fee for the efforts on their part. This fee will differ from exchange to exchange, and will also be dependent on how big of a trade it is. 

As makers are providing liquidity to the exchange (an enticing attribute for any trading platform) they will pay lower fees compared to a trader taking away from the platform's liquidity. Always be sure to check the fee structure and pricing on a platform before engaging in any trading activity, these will be outlined in the platform's trading policy.

How Do Trading Companies Make Money?

Cryptocurrency and blockchain technology was designed to provide a decentralized financial system that bypasses government control. However, to alleviate regulatory concerns, exchanges were established to provide a reliable and convenient means of operating within the crypto markets. These exchanges provide a secure way in which users can buy, sell and trade cryptocurrencies, and in return make money through the activities of its customers as it is a business after all.

While maker and taker fees make up a large portion of how a platform generates an income, the business also generates income through deposit and withdrawal fees, commissions made on trades and listing fees. These typically make up the cost of production and running the business.

In Conclusion

Market makers contribute to the market's liquidity by creating orders looking to be filled, while market takers fill these orders. Makers are typically rewarded for bringing liquidity to a platform with low maker fees, while takers pay higher fees when they make use of this liquidity, easily buying and selling the asset. 

Whether dissecting crypto or fiat currencies, the foundations remain the same: the currency must serve as a store of value and function as a medium of exchange for goods and services. While both these currency options tick those boxes, cryptocurrencies tend to also be followed by a dark cloud of volatility in the financial sector. 

Market volatility is a natural byproduct of a developing market, however, it can also cause many losses if not managed correctly. When the crypto markets go through high levels of market volatility they tend to get discredited with being a viable payment option. After paying withness to the Bitcoin market swings, several individuals recognised this flaw in the digital currency space and created a solution, "the stablecoin". 

In this article we establish what is a stablecoin is, how it fits into the financial landscape and explore the pros and cons of these digital currencies.

What Is A Stablecoin?

Stablecoins are digital currencies that harness the benefits of being a decentralized, blockchain-operated currency without volatility. Backed by any currency or commodity, stablecoins are pegged to the value of their underlying asset and managed and secured by their relevant platforms. For instance, Tether is pegged to the US dollar while Tether Gold is pegged to the price of gold and Tether EURt is backed by the Euro. 

These currencies operate like any other cryptocurrency, using blockchain technology to maintain and operate the network, but do not fluctuate in value based on supply and demand. Rather the price remains consistent with the asset it is pegged to, providing a better tool for digital payment transactions.

How Do Stablecoins Maintain Their Price?

While we've established that stablecoins are pegged to a commodity and reflect that price, let's cover how exactly that is achieved. Using fiat-backed stablecoins as examples, the companies behind these coins are required to hold a US dollar equivalent for each coin in circulation (or Euro if the stablecoin is pegged to it). 

These funds, also referred to as reserves, are either held in bank accounts or can be a combination of cash and short-term U.S. Treasury bonds. Most of the companies issuing stablecoins conduct third-party audits to prove that their reserves are at the correct levels and release this information to assure users that their coins are always worth $1 (or the currency-backed equivalent). 

Why Have Stablecoins Become so Popular?

The first stablecoin to enter the market was Tether in 2014, pegged to the US dollar. Tether is currently the third-largest cryptocurrency based on market capitalization, illustrating its vast popularity. The second biggest stablecoin currently on the market is USD Coin, also backed by the US dollar, which sits in the top 5 biggest cryptocurrencies with an equally impressive trade volume. Both these coins have provided valuable talking points within the industry as their market caps and adoption increase and they climb the ranks of the biggest cryptocurrencies.

Due to their resistance towards volatility, stablecoins have increased in popularity and are more widely used for conducting business around the world and executing cross border payments.

The Pros Of Stablecoins

Stablecoins are popular options for both businesses and individuals conducting business across borders. Below we outline the top benefits that stablecoins present to the market:

Digital Currency

The obvious first benefit of stablecoins is that they are maintained by blockchain technology and able to conduct international transactions in a much shorter time frame and for less cost than fiat currencies. The fast settlement times make these currencies an excellent, cross-border medium of exchange. They are also easy to use as they operate from wallets in similar ways to traditional cryptocurrencies.

Zero Volatility

Due to the nature of stablecoins being pegged to a fiat currency or commodity, they typically experience little to no high volatility trading periods resulting in a more reliable currency with the benefits of blockchain technology. Pertinent to increasing its adoption.

Hedge Against Failing Markets

Stablecoins have become increasingly popular for traders to hedge against other cryptocurrencies when markets experience a decline in price. Stablecoins allow traders to quickly liquidate their digital assets and easily reenter the market when the price stabilizes. 

The Cons Of Stablecoins

Centralisation

While blockchain technology and cryptocurrencies celebrate the notion of being decentralised, stablecoins do bring in a nature of centralisation, particularly when it comes to the backing of the assets. Ensuring that each coin in circulation is backed by an equal reserve value requires a team that leans the operation more toward a centralized structure.

Transparency

Several stablecoins have been called out publicly for not being transparent with their reserves. Tether, for example, has seen much public outcry concerning whether the company has the correct amount of reserves, leading to fines and regulations imposed by the US government. They have since released a report on the current reserve holdings of the company. 

In Conclusion

Many traders have incorporated stablecoins into their portfolios, to have as a hedge against falling crypto markets or falling fiat markets. These digital assets are also used by businesses around the world to conduct payments with the benefits of digital currencies and without the risk of volatility. Through the Tap app, users can now access and purchase USD Coin (USDC) as well as Tether (USDT). The sleek design of the app interface makes it easy for users who want to buy or sell cryptocurrencies with fiat currency through their phones in a click. 

When it comes to choosing a stablecoin, consider the projects behind it, the liquidity and the ease of use in terms of wallet compatibility.

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