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Have you heard of the term “altcoin” but not exactly sure what that means? In this article we’re breaking down everything you need to know about altcoins, from the different types of altcoins and how they work, to how you can get your hands on them (buy altcoins). The crypto industry can often feel a little daunting, so we’re here to clear the air and help you establish a strong foundation of insight, knowledge and know how. 

Starting at the beginning, what are altcoins? Altcoins are all cryptocurrencies except for Bitcoin. Not too complicated, is it? Circling back to the early days of the crypto industry when there were only a few cryptocurrencies on the scene, any new coin that was introduced was referred to as an “alternative coin” (labelling it as an alternative cryptocurrency to Bitcoin), which was then shortened to altcoin. So when someone refers to an altcoin, know that they are talking about any cryptocurrency that is not the original (Bitcoin). Altcoins are still decentralized networks, with most of them utilizing blockchain technology.

How Many Altcoins Are There?

At the time of writing, CoinMarketCap reports that there are over 9,400 altcoins in the cryptocurrency industry. This number is increasing by the day, however it’s worth mentioning that these 9,400+ altcoins only make up 50% of the entire cryptocurrency market’s value. Bitcoin is still the most dominant cryptocurrency, with Ethereum the next bigger cryptocurrency. Ethereum is currently responsible for holding roughly 14.5% of the entire market’s value. As Ethereum is also an altcoin, this makes the “altcoin industry” worth $1 trillion. In general terms, one would rather just say the crypto industry.

The Different Types Of Altcoins

With an industry worth over $1 trillion, there is bound to be a wide range of variation. This is just the case with the crypto industry. There are a number of categories that have been created over the years, allowing for various altcoins to provide a new service to the industry. You can also expect to see tons of innovation in the altcoin space, as each new altcoin needs to either improve on the last one, or provide a different use case.

Each cryptocurrency is designed to solve a problem, either faced within the blockchain industry or outside of it, however, many of these have created a niche altcoin market. An example of this is altcoins focused primarily on providing anonymous transactions, these altcoins then fall into the Privacy category. We’ve detailed seven of the main categories below to give you an indication of the vast innovation and use case potential within the space. 

Payment Focused Altcoins

First and foremost, these cryptocurrencies’ primary aim is to provide a medium of exchange within the digital currency realm. Focusing on payment functionality, these digital currencies are akin to Bitcoin and often were created as a “better” version of BTC (through hark forks on the network). Some examples of this include Litecoin (LTC) and Bitcoin Cash (BCH). 

Protocol Focused Altcoins

Protocol focused altcoins are designed to allow developers to work on their blockchain network to create decentralized apps (dapps), smart contracts, and in some cases other cryptocurrencies. They provide space for innovation within the blockchain industry, and empower developers to learn and grow their blockchain understanding. Examples of protocol focused cryptocurrencies include Ethereum (ETH), Tron (TRON) and Neo (NEO). 

Privacy Focused Altcoins

As mentioned above, privacy focused cryptocurrencies provide users the opportunity to send private transactions that are entirely encrypted. While these networks often garner a bad name due to them being used for illicit activities, they are in essence not far from what Satoshi Nakamoto originally intended for Bitcoin. Each network uses slightly different protocols, however they all provide the means to send secure, anonymous transactions. Examples of privacy focused cryptocurrencies include Monero (XMR), Zcash (ZEC) and Dash (DASH).

Stablecoins

You’ve likely heard of stablecoins before. They are the digital currencies that are pegged to a fiat currency. Providing a stable market inside of what has become known as a highly volatile market (cryptocurrencies as a whole), stablecoins offer a hedge against market dips as well as an entry point for users who want to get a feel for the crypto industry. Examples of stablecoins include USD Coin (USDC) and Tether (USDT) which are both pegged to the US dollar, trading at a 1:1 ratio (i.e. 1 USDT will always be worth $1). Stablecoins also include cryptocurrencies pegged to the value of commodities such as gold and oil.

NFTs

NFTs (non fungible tokens) have had their fair share of mainstream media attention recently, especially after one NFT broke records when sold for millions of dollars. NFTs are actually unique crypto assets that cannot be used in the same way that other digital currencies can be. Each NFT holds unique characteristics that represent a one of a kind product, whether it be a piece of digital art, physical art, a house, or even a luxury handbag. These altcoins cannot be recreated, and hold all their transaction history (previous ownership) on a transparent blockchain. They also cannot be “spent” in the same way as other cryptocurrencies in that one an NFT is created, it has that purpose attached to it for life (unlike BTC which can be spent interchangeably).

CBDCs 

CBDCs (central bank digital currencies) are similar to stablecoins but are created and maintained by financial institutions like banks. These currencies’ value is pegged to the local currency, and allow countries to test the efficiency of digital currencies without the volatility. Many countries are in the development phase of CBDCs, however China is leading the pack having recently launched their testing phase. 

Utility tokens

Utility tokens are blockchain tokens that are unique to a particular platform. Many cryptocurrency projects have created utility tokens as a means of crowdfunding prior to their launch, while other projects create utility tokens to be used within the platform for goods and services. Typically, utility tokens have been ERC-20 tokens, and might allow a user access to a new level of a game or to a subscription of some sorts.

How to Get Altcoins

Having gained an understanding of altcoins, individuals eager to explore the thriving altcoin market can effortlessly leverage the capabilities of the Tap app. Tap offers seamless access to an extensive spectrum of cryptocurrencies, including notable names such as Ethereum, Litecoin, XRP, and an assortment of others. It's crucial to bear in mind that not all cryptocurrency wallets exhibit compatibility across the board. For instance, attempting to house an altcoin like XRP within your Bitcoin wallet or stow Tron within your Ethereum wallet would not work due to their incompatibility.

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As we explore concepts within the investing world and the various available options, today we are looking into mutual funds to gain a proper understanding of what they are, how these are categorized, and what these actively managed funds could contribute to your investment journey. 

What is a mutual fund? 

A mutual fund is a type of investment vehicle that pools the money of many investors and invests it in stocks, bonds, or other securities. Mutual funds offer investors diversification, professional management, and economies of scale. 

These actively managed funds also provide liquidity since they can be easily bought and sold through a broker or financial advisor. Mutual funds come with various levels of risk depending on their asset allocation strategy, with some being more conservative than others. Investing in mutual funds is a great way for individuals to access the stock market without having to purchase individual stocks themselves.

How can you access actively managed funds?

Investing in mutual funds is an easy and cost-effective way to diversify your portfolio, as they offer access to a wide range of asset classes. Mutual funds are professionally actively managed funds handled by fund managers who make decisions on behalf of the investors. 

Accessing mutual funds is relatively straightforward, investors can buy mutual fund shares directly through a fund house or use the services of a financial advisor or online broker. The price will reflect the mutual fund shares' net asset value plus fees associated with the trade.

When one wants to redeem their shares, they will be worth the net asset value at the time plus any fees. The net asset value (NAV) of a mutual fund, more commonly referred to as its price, is determined by the total worth of all the securities held in the portfolio and divided by the number of outstanding shares.

Before investing in any mutual fund shares it’s important to understand the fees associated with them, such as management fees and sales charges, so that you can choose the best option for your needs. Mutual fund investing can be lucrative, but there are still risks associated.

The different types of mutual funds available

As with most investment options, there is never just one type. When it comes to mutual funds, there are roughly six different types that one can explore. Any interested mutual fund investor should become familiar with the following types:

1. Stock Funds

Also known as equity funds, stock funds are made up of stocks (publicly traded shares of a company). Stock funds allow mutual fund investors to invest in multiple publically traded companies, and effectively own a tiny piece of each. These stock funds are known to deliver the highest returns when compared to other mutual funds and have the greatest growth potential, however, they are also considered to be the most volatile. 

Growth stock mutual funds, in particular, are known to grow at a faster rate than the rest of the markets. These are categorized by the companies' value, with small-cap funds incorporating companies valued below $2 billion, medium-cap funds $2-10 billion, and large-cap funds looking at companies valued at $10 million or higher. 

These mutual funds can be further broken down into a number of categories, and offer a perfect means to diversify within the stock funds category:

Growth and Income Funds (Large Cap)

Aiming for slow and steady development, these calm-growth stock mutual funds invest in large-cap companies that have relatively modest rises and falls when compared to their smaller counterparts. As a result, mutual fund investors can be sure of long-term gains with minimal risk.

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Growth Funds (Medium Cap)

A perfect medium between small-cap and large-cap funds, these mutual funds invest in mid-sized companies for moderate growth and volatility.

Emerging Market Funds (Small Cap)

These are the most volatile funds as they have the capability to offer massive profits or losses in a brief period. Investing heavily in up-and-coming startups with the potential for exponential growth is an integral part of these aggressive mutual funds.

International Funds

International growth stock mutual funds allow one to diversify their money even further and are composed of a variety of companies from across the world and differentiated by capital size. These mutual funds typically include the likes of international brands and market giants beyond the borders of a specific country. 

2. Bond Funds

With bond funds, you have the option of investing in government or corporate bonds. Here, instead of buying a company's stock, your money is lent to governments and in return one earns interest. Unlike growth stock mutual funds which can be volatile and unstable in nature, bond funds offer steady returns and are known to provide consistent profits over time. 

While bond funds err on the side of caution, it's important to remember that in order for an investment to be worthwhile it needs to grow at a faster rate than inflation. History shows that these types of mutual funds earn between 5-6% per annum, which should be evaluated against the inflation rates (typically 3-4%). While bond funds are a safe bet, one must consider whether they will generate wealth.

3. Index Funds

Index funds are a kind of mutual fund that seeks to match the performance of an index or certain segment of the market. Unlike most mutual funds which have their investments actively managed by professionals, index funds only buy the investments included in a specific index, a process known as passive management.

For example, the renowned S&P 500 index tracks the stock prices of some of America's leading businesses to measure their financial performance. Investing in an index fund of this nature allows you to invest in multiple companies at the same time.

While many investors believe index funds are more beneficial in the long run due to their lack of management fees, there is a plethora of professionally managed mutual funds that routinely surpass these. Not only this but investors who invest in mutual funds will always benefit from an experienced investment professional monitoring one's portfolio, making up for any additional costs with increased profits. 

4. Income Funds

Those seeking regular income from their investments should consider mutual funds that focus on stocks paying dividends. Investors who opt for such a fund are not worried about the volatility of stock prices, instead, they're prioritizing receiving reliable small amounts of money from companies inside these mutual funds throughout the year.

5. Money Market Funds

Money market mutual funds provide investors with the opportunity to earn returns from loaning money out for short-term periods. Money market funds are typically loaned out to governments, banks, and companies that have contractual agreements in place to pay back investors within a year or less.

In comparison to bond funds, money market funds often fall short in terms of building wealth. For example, they typically pay an average return rate that is no higher than 3%, meaning your capital can actually decrease with time if inflation exceeds this level. 

Money market mutual funds can act as a protective guard over one's cash. While it safeguards against any potential losses, its conservative nature also limits the chances of any significant growth.

6. Hybrid Mutual Funds

To ensure your investments are well-rounded and secure, hybrid mutual funds cleverly spread out the money across stocks (equity) and bonds (debt). Two common types of these intelligent funds include balanced funds and target-date funds. Investing with hybrid mutual funds offers returns in smaller time frames. 

Balanced Hybrid Mutual Funds

Balanced hybrid mutual funds are investment funds that provide a combination of stocks and bonds, allowing investors to benefit from both the potentially higher returns of equities while also mitigating some of the risks with fixed-income investments. 

These mutual funds typically have an asset allocation mix between 60% stocks and 40% bonds, but this can vary depending on the fund's objectives. Balanced hybrid mutual funds offer diversification within one single fund, making them ideal for those seeking to minimize their overall portfolio risk.

Similar to most mutual funds, these types of mutual funds are actively managed by experienced professionals who continually monitor market conditions in order to make adjustments when necessary.

Target-Date Hybrid Mutual Funds

Target-date hybrid mutual funds are a type of investment fund that combines both stocks and bonds to provide investors with the potential for higher returns while mitigating some of the risk associated with equities. 

These mutual funds typically have an asset allocation mix that is based on when one plans to retire, allowing investors to benefit from diversification within one single fund. Target date funds can also be referred to as lifecycle funds.

Why invest in mutual funds?

Investing in mutual funds is a great way to diversify your portfolio and maximize your returns. Mutual funds are pools of money from several investors that can be used to purchase stocks, bonds, or other investments. 

Most mutual funds allow investors to spread out the risk associated with investing across multiple assets instead of just one, reducing the volatility of your overall portfolio. Additionally, mutual fund managers have access to greater research capabilities than individual investors do which can help them identify profitable investments more quickly. 

Overall, investing in mutual funds is an excellent way for individuals to benefit from professional management while also reducing their own risk exposure. Mutual funds are also recommended for long-term investment goals, particularly for retirement. 

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If you're new to the cryptocurrency market or just new to stablecoins, in this piece we're covering everything you need to know about this digital currency market. As we dive into the topic, we're going to cover why they are useful to the financial market and take a look at some popular options currently being traded. 

While stablecoins are not designed to provide returns, they provide a great means of hedging against losses when the market drops and allow users to tap into the benefits of crypto that fiat currencies can not otherwise provide.

While some might expect the regulation for stablecoins to be different from that of cryptocurrencies, the truth is that they currently both fall under the same (digital asset) umbrella. There are currently motions in place to regulate stablecoin issuers.

What are stablecoins?

A stablecoin is a type of cryptocurrency designed to hold a stable value by pegging its price to a stable asset, like a fiat currency or commodity. This version of digital money is designed to offer a "stable" market in an industry that is known to be rather volatile.

Stablecoins allow businesses to tap into the benefits of crypto without falling victim to price volatility or being exposed to counterparty risk and while they don't provide returns typically associated with the crypto industry due to their stable price, stablecoins do provide investors with a strategy to hedge against volatile markets.

With the fast-developing world of cryptocurrencies, there are now a number of stablecoin options available on the market, each with varying structures, leadership, reputation, and use cases. There are two main types of stablecoin based on what keeps stablecoins stable, these include fiat collateralized and crypto collateralized, as well as algorithmic stablecoins and commodity-backed stablecoins.

Fiat collateralized stablecoins (fiat currencies)

Fiat collateralized stablecoins are pegged to a government-issued fiat currency, such as the United States dollar. These currencies are backed on a 1:1 basis, meaning that the central authority holds one unit of the reserve currency for each stablecoin issued in a secure account.

Some examples of stablecoins in this category include Tether (USDT), Paxos Standard Token (PAX), and USD Coin (USDC). All of these coins are pegged to the U.S. dollar and the stablecoin issuers are required to hold an equivalent amount in a reserve account.

Crypto collateralized stablecoins (crypto)

A slightly less common version of stablecoins is the crypto-collateralized stablecoin meaning these digital assets remain the same value as the underlying tokenized asset that they are pegged to and do not rely on third parties to hold the correct amount of stablecoin reserves.

DAI is a prime example of this, a crypto-backed stablecoin created when users send ETH to an Ethereum-based smart contract. 

Algorithmic stablecoins (smart contracts)

Algorithmic stablecoins are pegged to other digital assets' values via smart contracts and work hand in hand with another cryptocurrency. If the algorithmic stablecoin trades above its peg, new coins (of the other cryptocurrency) enter circulation, reducing its value. If it trades below its peg, coins are destroyed, thereby increasing the price.

Investing in non-collateralized stablecoins, e.g. an algorithmic stablecoin, is considered to be high risk as any failures in the algorithmic stablecoin system can result in dramatic value losses, as was witnessed with the Terra LUNA crash in 2022.

Other cryptocurrencies

There are also commodity-backed stablecoins that are backed by commodities and precious metals, such as gold-backed stablecoins. Popular stablecoins among the commodity-backed stablecoins pegged to precious metals include Paxos Gold (PAXG) and Tether Gold (AUXt).

Some stablecoins backed by nothing at all are still pegged to fiat values. These are called central bank digital currencies and are issued by banks to provide a digital version of their local fiat currency. 

How do stablecoins work?

Stablecoins are typically built on blockchain networks that facilitate the functioning of the coin. For example, the most popular token standard for stablecoins is Ethereum's ERC-20 token. These tokens function as any other cryptocurrency in terms of peer-to-peer transactions, only they use the Ethereum blockchain to facilitate the transactions and maintain the network.

The stablecoin issuer will then be responsible for ensuring that the correct amount of fiat currency or cash equivalents are held in reserve, based on what currency it is pegged to (i.e. the U.S. dollar or Euro). In the case of commodity-backed stablecoins, the equivalent amount of the commodity will need to be held in physical vaults.

What are stablecoins used for?

While the world slowly integrates other cryptocurrencies into its financial landscape, stablecoins provide a simple and easy means to integrate the crypto world with traditional financial products.

As a rule of thumb, stablecoins provide the benefits of digital currency without the volatility, empowering the crypto ecosystem to better integrate into everyday life.

What are the risks of stablecoins?

Stablecoins, while aiming for stability, still carry innate risks. As their value is dependent on the stability of the assets they are pegged to, they are not totally immune from sudden fluctuations. Regulatory scrutiny poses another risk, with potential changes affecting their operation or legality. Additionally, stablecoins are susceptible to issuer risk, as their value relies on the credibility and financial stability of the organization backing them, as well as their integrity when it comes to holding the correct amount of collateral. Inadequate reserves or insufficient transparency regarding asset backing could also lead to liquidity concerns and market instability.

What is the purpose of stablecoins?

While you might be asking yourself why anyone would want to purchase a digital asset that is unlikely to bring about any profits, stablecoins present a number of benefits in the crypto ecosystem. 

Hedge against volatility

For starters, they provide protection against market volatility. As they are pegged to an underlying asset and relatively stable (when compared to more volatile cryptocurrencies) they can provide a hedge against bear markets.

Should a cryptocurrency suddenly be exposed to price fluctuations, moving your funds to a stablecoin can help protect against any losses in value or purchasing power. The funds can easily be moved back once the market has corrected. Instead of liquidating your assets, you can simply move them to another blockchain-powered asset until the market settles. 

Price stability (similar to fiat currency)

Stablecoins also provide a safe means of trade for merchants using crypto in terms of price stability. When sticking with a predominately stable cryptocurrency they omit the chance of their $2 transaction when paying for a coffee being worth $1 at a moment's notice. This mitigates the risk for payment-driven businesses and provides innovation within the finance sector.

Remittance market

Another area that stablecoins provide a valuable service is for cross-border money transfers. Stablecoins bridge the gap of getting funds from one location to another and incur a fraction of the time and costs of fiat transactions. 

Popular stablecoins in the crypto market

Stablecoins went from being relatively controversial to featuring in the top 5 biggest cryptocurrencies by market capitalization. Below are a few of the top stablecoins on the market.

Tether (USDT)

Arguably the most popular stablecoin, Tether is currently listed in the top 5 biggest cryptocurrencies. While the stablecoin has seen its fair share of controversy (in terms of accurate reserves) compared to other stablecoins, the coin remains a firm favourite amongst organizations, investment managers, and crypto investors alike. 

The coin was first released in 2014 under the name Realcoin and was designed to provide a second layer on top of the Bitcoin network. Later, the coin was created using the ERC-20 token standard and became operable on the following blockchains: Ethereum, EOS, Tron, Algorand, and OMG. 

Dai (DAI)

Dai started out as an earlier version known as Single-Collateral DAI (SAI) which was pegged to a single cryptocurrency. In 2019, the multi-collateral DAI was created and soft-pegged to the U.S. dollar, maintaining this value by collateralizing other cryptocurrencies using stablecoin technology, most notably an Ethereum-based smart contract.

The stablecoin is managed by the Maker Protocol and the MakerDAO (decentralized autonomous organization). Such stablecoins also allow holders to earn interest based on their stake. 

USD Coin (USDC)

Another one of the top fiat-backed stablecoins but with a slightly less controversial back story, the USD Coin is currently ranked within the top 10 biggest cryptocurrencies. The company behind the asset, the Centre Consortium, holds $1 in reserves for every 1 USDC that enters circulation.

The reserves are held in cash and short-term U.S. Treasury bonds. The company's goal is to "create an ecosystem where USDC is accepted by as many wallets, exchanges, service providers and dapps as possible" to facilitate cashless and international transactions.  ‍

Tap into the world of stablecoins in the app

The stablecoin market is notorious for its ability to maintain price stability and protect against market price falls and price fluctuations, providing inherently stable assets in a world of other cryptocurrencies.

Whether you're looking to build a portfolio of fiat or crypto-backed stablecoins or stick to regular cryptocurrencies, the Tap app provides a seamless and highly secure platform for managing these currencies. Alongside the exchange, there is also a unique wallet in which you can store both crypto and fiat currencies, as well as a prepaid crypto card that allows you to spend these currencies anywhere in the world through a single tap of your finger. 

You may have heard of bear and bull markets; both referring to economic conditions within a market. Think about how a bull attacks, lifting you up with its horns. 

A bull  market or bullish market describes a condition within a financial market where the prices are rising or are expected to rise. The term "bull market" is most often used to refer to a financial market but refers as well to any asset that is tradable such as bonds, real estate, commodities, and currencies. Bull markets indicate investor confidence, optimism, and expectations that strong results will continue for an extended period of time.

There are two ways to What is a Bull Market?

A bull market refers to a financial market condition in which the prices of securities or assets are rising or expected to rise over an extended period. In a bull market, investors are optimistic about the future prospects of the market and are willing to buy securities, pushing prices higher.
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Bull markets are often associated with economic growth, strong corporate earnings, and low unemployment rates. In these conditions, investors are confident that businesses will continue to perform well and that the overall economy will continue to expand, leading to higher stock prices.
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Recognizing a Bull Market

To recognize a bull market, investors need to look for a sustained period of rising prices across the market or a specific asset class. This period can last anywhere from a few months to several years.
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Another way to recognize a bull market is through technical analysis. Technical analysts look at charts and other market indicators to identify patterns that signal a market trend. In a bull market, technical analysts may look for higher highs and higher lows in price movements over time.
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Impact of a Bull Market

A bull market can have a significant impact on the economy, businesses, and investors. When the stock market is performing well, businesses may have easier access to capital and credit, which can lead to increased investment and growth.
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A bull market can also lead to increased consumer confidence, as investors feel more optimistic about the economy and their financial futures. This can lead to higher consumer spending, which can, in turn, fuel economic growth.
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On the other hand, a prolonged bull market can lead to a market bubble, where prices become overinflated and unsustainable. This can lead to a market correction, where prices drop significantly, and investors may suffer losses.
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In conclusion

Bull markets can have a significant impact on the economy, businesses, and investors. Recognizing a bull market and understanding its impact can help investors make more informed investment decisions. However, it's essential to remain vigilant and avoid investing solely based on market trends, as market bubbles can lead to significant losses.

approach a bull market: selling stock for high profits or holding in hopes of rising prices in the future. Alternatively, you can also buy more assets, but most would not recommend buying on a high.

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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.