Learning the friendly way

We are delighted to announce the listing and support of Chiliz (CHZ) on Tap!

CHZ is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold CHZ for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting CHZ will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Chiliz is a fintech company that uses blockchain technology to create new ways for fans to support and engage directly with their favorite sports teams. The company's goal is to be the leading provider of fintech solutions for sports and entertainment businesses around the world. Chiliz enables its users to trade tokens to show their support for professional sports teams.

Chiliz fans can buy their favorite team's Fan Tokens using the native Chiliz token " CHZ " on socios.com, the crowd management platform that Chiliz uses. Sports fans staking $CHZ on Socios.com also have opportunity to receive new Fan tokens as well as a up to 10% $CHZ bonus yield.

As we move into a more digital world with enhanced security systems, so too are hackers and fraudsters. With millions of dollars lost each year at the hands of these ill actors, in this article we take a look at the 5 most common crypto scams and how to spot them. The financial world need not be a scary place, with a few precautions in place you can bank on being able to avoid them.

What is a crypto scam?

A crypto scam is a type of investment fraud revolving around cryptocurrencies. According to a report by Chainalysis, a record-breaking $14 billion of crypto was stolen last year through crypto scams. While there are many different types of crypto scams, of which we'll explore 5 below, the common thread is that crypto is wrongfully taken from a user through fraudulent activities. 

The biggest crypto scam of recent times was in late 2020 when people hacked into the Twitter accounts of high profile individuals and claimed that should someone send Bitcoin or Ethereum to an address they will receive twice the value back. These accounts included the likes of Barack Obama, Elon Musk and Joe Biden. 

The top 5 most common crypto scams

While there are an infinite amount of crypto scams out there, below we are highlighting the 5 most common ones.

Fake crypto exchanges

These types of exchanges provide a buy/sell platform on which users can trade cryptocurrency, however, once they have deposited the funds they cannot withdraw any money. These funds might still appear on the platform although the money is long gone. 

Always read the reviews of a platform, and do your own research before depositing money anywhere. 

Ponzi schemes

Ponzi schemes might have started in the late 1800s but they're still here. The scheme works in such a way that each member earns rewards by recruiting new members, whose money is then used to pay off older members. This eventually reaches a saturation point after which it collapses. 

Always do your due diligence and ensure that the scheme you're investing in is solid. If it sounds too good to be true, it probably is.

Fake investment schemes

Be wary of an investment opportunity promising to deliver unbelievable gains. This might be in the form of depositing funds on a platform only to lose the money or struggle to withdraw it at a later stage. These are often circulated through well-known publications or on social media with celebrities "endorsing" the products. 

Pump and dumps also fall into this category. These schemes are created when a large group of people decide to invest in a coin, only to drive up the prices and cash out at the top. Many people are then left with a worthless coin at the end, having lost their investment. 

Imitating a crypto exchange

Similar to the concept of phishing, someone might create a social media account of a big exchange and contact the user "on behalf of the company". This is intended to gain your trust and is either done in an attempt to gain your passwords, or with a message that you owe large amounts in tax which needs to be paid in Bitcoin immediately to avoid imprisonment. 

Never follow links in an email, rather access the site from your own browser directly and be sure to check the URL. Successful scams of this nature often have a small typo in the URL which goes unnoticed. 

Malware & ransomware

The malware allows scammers to gain access to your computer, either locking you out of files or stealing credit card or crypto address details. With this information, they can drain your accounts in minutes. 

Ransomware works slightly differently in that the scammers lock the entire computer and demand a ransom to gain access again. This is often paired with blackmail where the victim, and in some cases organizations, are threatened that if they don't pay sensitive information will be released. A lot of victims in this situation manage to get out of it unharmed.

These might sound very scary, but should you maintain safe online protocols and check URLs before entering your details, they should be entirely avoided. 

5 tips on how to avoid crypto scams

These might sound obvious but it never hurts to read them again. Below are 5 tips on how to stay vigilant and avoid crypto scams entirely.

• Be wary of phone calls and emails claiming to be from exchanges and never click the links from them. 
• Never give your password, private key or security codes to anyone.
• Never give someone remote access to your device.
• Look out for social media accounts imitating legal firms or exchanges or a prominent person in the industry. Support will never contact you from a social media account.
• And lastly, if it sounds too good to be true - it probably is. 

Easily avoided, comfortably secure

We hope this information assists you in keeping your data and money secure online, proper security is always imperative when using payment methods or services on the internet. As technology evolves, so too must our security systems and vigilance. With these tips above you should be well on your way to spotting something that doesn't quite look right, and avoiding crypto scam.

There are plenty of reports of investors making huge gains in the crypto market over the years, however, there are plenty more ones on people who have lost money. While investing is designed to increase your personal wealth, many investors are often intimidated by the digital currency market due to its volatility and age. In this piece, we're going to run you through the various ways of making money from cryptocurrencies without making a single trade. 

After the economies around the world were deeply affected by the Covid-19 pandemic, now is as good a time as any to regain control over your funds and use passive income opportunities as a tool to do so. Tap into the innovation available in the crypto space to pay off your mortgage, bond or leverage your pension and forget about fluctuating market prices.

Passive income 101

The least risky way in which to build your personal wealth is through passive income. Passive income involves generating money from investments that don't require any intervention. This includes activities such as earning dividends from stocks, automated sales through a business, monthly or annual rental from properties, etc. 

Another avenue of passive income is earning interest on money in the bank. In this case, the bank will pay you a predetermined percentage of the funds stored in that account. Thankfully, the crypto space has caught up and currently has a number of programs that are offering crypto holders the same benefits, albeit with far greater interest rates. While the regulation surrounding these programs is still being structured, many reliable and trustworthy platforms are offering programs worth taking advantage of.

How to earn passive income with crypto

Below we explore several smart ways in which you can earn a passive income with crypto, all designed to grow your capital. These options are outside of the decentralized finance (DeFi) space so as to avoid any potential problems or scams, rather stick to reliable platforms and networks as outlined below.

Staking

As the crypto space has evolved, many platforms have shifted from the original Proof of Work consensus mechanism to a Proof of Stake one. PoW involves miners competing to solve a complex cryptographic puzzle in order to validate transactions on the network and earn the block reward.

PoS models are less energy-intensive and instead require validators on the network to stake a certain amount of the native cryptocurrency in order to validate the transactions and earn the reward. Anyone can get involved thanks to the likes of PoS platforms like Cardano, Polkadot, and Ethereum 2.0.

Stakers can delegate crypto to a validator and earn a portion of the payouts when the validator completes the process. Requiring very little technical knowledge and minimal capital (each platform is different), staking provides an easy opportunity for a cryptocurrency holder to earn passive income. 

Stakes can also opt to be a validator, which requires a considerable amount of effort and technical information. With two options available when it comes to staking, one can either opt to be a validator or delegate coins to a validator. The former will require more capital and attention but yield higher returns, while the latter provides lower returns but ensures that the validators do all the work. 

Mining‍

On the other side of the coin, there is mining. Mining is native to PoW networks and involves confirming transactions for a reward. Networks vary in terms of what computer resources one might need, although cheap electricity is essential as these machines typically require large amounts of power. 

The world of mining has progressed in leaps and bounds since the early days of using CPUs to mine Bitcoin. Should one want to explore this path, we advise you do extensive research on the cost implications beforehand. 

Lending

A method favoured by long term investors looking to earn interest on their already accumulated crypto assets, lending involves borrowing the funds to a platform in return for interest. These funds are typically locked away for a certain period of time in exchange for interest payments later on. 

Peer-to-peer (P2P) lending platforms usually have a fixed or variable interest rate and will handle the logistics of the borrower and lender. These types of services are often found on platforms that offer margin trading. 

Make money without engaging in any trades, with no betting on the outcome of the market. Passive income from cryptocurrencies can be done simply by storing your already accumulated digital currencies in an income-generating account. Experiences on various platforms will vary, however, in most cases the customer will deposit their funds into a specific account and earn interest in the same currency. Check the platform's publication for guidance if you need any assistance.

In recent years, cryptocurrency, and therefore cryptocurrency exchanges, have firmly established themselves in the global financial market. As they become increasingly popular, many concerns have been raised over the regulation of these entities, and how they are preventing illicit monetary activity from taking place. 

In an attempt to crack down on funds being illegally moved, exchanges are required to implement KYC (Know Your Customer) and AML (anti-money laundering) policies. Regulatory bodies are working to build legal frameworks for the industry, in an attempt to fight crime conducted using blockchain technology. 

The biggest challenge for these regulatory bodies is to find a solution that doesn't hamper the innovative qualities of cryptocurrencies. 

In the UK there is the Financial Conduct Authority, a financial regulatory body that operates outside of the UK government. In 2020, the FCA required every company participating in any crypto activity in the sector to comply with its Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 policy (the 'MLR's). This obligation requires crypto service providers to complete the necessary registration and infrastructural requirements.

What is AML in crypto?

AML stands for anti-money laundering and involves protocols that ensure that every transaction can be tied to an identity, thus providing greater transparency. This ensures that if any suspicious activity is flagged, the origins and/or destination of the funds can be confirmed on the platform.

Due to the anonymous, or more accurately pseudonymous, nature of cryptocurrencies, many believe that it provides an easy opportunity for ill actors to engage in money laundering. Money laundering is the act of changing large amounts of illicit income into a legitimate avenue, the money is "laundered" so as to appear clean.

While cryptocurrencies seemingly provide a perfect platform for money laundering due to the lack of central authority or third parties, AML processes are implemented on exchanges to stop this activity in its tracks. 

What are the risks hindering AML practices?

The first risk that challenges AML practices is privacy coins, cryptocurrencies designed to conceal transactions and the relevant information attached to them. Platforms like Monero offer users the opportunity to send funds with no record of the transaction taking place. 

The data associated with the transactions like the sender, receiver and amount sent are encrypted and often broken up when stored on the blockchain to ensure they are untraceable. 

The second risk is coin join platforms that mix cryptocurrency transactions, hiding the origin and destination of the funds. These platforms essentially provide a service that can make ordinary cryptocurrencies anonymous. 

While cryptocurrencies have their benefits, there are a number of challenges they pose to regulatory bodies, AML and CFT (Combating the Financing of Terrorism) intentions:

• The anonymity they can provide
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• Opportunity for gaps when transacting cross-border transactions
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• Absence of one central authority to ensure compliance
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• The limited scope of identity verification processes

Differentiating between illicit activity and investors just wanting to safeguard their investments is a tricky business. Bad actors might make use of paper wallets to hide funds and keep them secret, while an investor might make use of a paper wallet in order to protect their funds against theft. 

AML in crypto exchanges

Despite the challenges it faces, AML has proven to be valuable in cracking down on illegal activity conducted on crypto exchanges. 

In July, $1.45 billion worth of illegal cross-border crypto transactions were traced back to 33 individuals on the South Korean exchange, Bithump. The platform quickly banned all foreign transactions, requiring a mobile KYC verification, and increased the KYC requirements so as to align with the country's AML regulations. 

Bitcoin ATMs, a notorious option for mixing funds, have come together to form the Cryptocurrency Compliance Cooperative (CCC). This operation calls for cash-based cryptocurrency services, financial institutions, and regulators to participate in building universal compliance factors. 

Does AML help or hinder the crypto market?

While AML tends to go against the decentralized nature of cryptocurrencies, the crypto community actively welcomes these regulatory efforts as it drives more trust and interest in the market on top of innovation and adoption. For example, an institution or retail investor is more likely to invest in a regulated asset than in a lawless, anything-goes market. 

Anyone that has been watching the markets closely for the last several months will have noticed a definite chill in the air (not to mention a decline in their money). As the bears become more prominent, weak hands are losing faith and exiting the market. Why are we talking about a cryptocurrency winter now? Before we firmly declare this to be a crypto winter, let's explore the recent dips of the digital asset market and what previous crypto winters have detailed. 

What is a cryptocurrency winter?

A cryptocurrency winter is a term used in the crypto market to describe a long term bear market. A bear market is classified as a declining market where shares have fallen below 20%. Investors typically call it a crypto winter when the markets have struggled to reclaim highs previously witnessed (usually right before the winter set in). Does that mean cryptocurrency investors should take out their snow shoes? Metaphorically, yes. And by snow shoes we mean thick skin and strong hands.

The recent market climate (five month period).

Since reaching its most recent all-time high, Bitcoin has dropped over 40%. After reaching highs of $68,789.63 in November 2021, Bitcoin has gone through a red-tainted slump reaching lows of $33,710 in late January and since recovering to just under the $40,000 mark. 

Ethereum, the second-biggest cryptocurrency, has experienced a similar fate, dropping from highs of $4,891 in November 2021 to lows of $2,211 in late January. Ethereum has since corrected to the $2,800 region as it generates interest in its move to a Proof-of-Stake consensus. 

It's no secret that the stock markets have suffered a similar fate in recent months, with seemingly only gold remaining unscathed. Experts have suggested in various articles that the uncertainty in global politics is playing a considerable role in the decline of various markets and businesses.

Buterin confirms a crypto winter

As touched on above, the current ongoing war between Russia & Ukraine has played a large role in driving investors' uncertainty as prices bounce through the highly volatile period. While we've seen an increase in trading volume, there have also been strong price swings.

This paired with the declining prices has led to a downfall in companies and traders entering the market, further fuelling the problem. This has become known in the industry as a crypto winter. 

Ethereum founder, Vitalik Buterin, recently confirmed the case, although he also highlighted the positives, particularly for those on the development side. He pointed out that crypto winters offer a period of rejuvenation for the industry, allowing unsustainable projects to fall away. 

"They welcome the bear market because when there are these long periods of prices moving up by huge amounts as it does - it does obviously make a lot of people happy - but it does also tend to invite a lot of very short-term speculative attention."

He added that it encompasses a "time when a lot of those applications fall away and you can see which projects are actually long-term sustainable, like both in their models and in their teams and their people." If one factors the development side of things in, we can bank on the industry coming out stronger after this period.

Unwrapping the previous crypto winter

The last crypto winter we experienced took place in 2018 after the highs of December 2017 (when Bitcoin almost reached $20,000). This bear market continued until mid-2019 before it started showing signs of recovery. It wasn't until Bitcoin defied the odds in 2020 and overcame the pandemic that it soared to higher heights, almost triple that of the previous all-time high. 

While losing 40% of its value this season sounds rough, the previous crypto winter saw losses of 84%. As cryptocurrencies further emerge themselves into the mainstream financial markets, many believe it is only a matter of time before the prices enter the green again. Time also tends to play a regulator role when it comes to changing crypto seasons. 

Bitcoin's four year cycle theory

There is a growing belief in the industry that Bitcoin has a definitive four-year cycle of prices rising and falling. This aligns with the halving mechanism which takes effect every 210,000 blocks, or roughly every four years. 

The halving, the last of which took place in May 2020, halves the rewards given to miners for verifying transactions and effectively halves the number of new coins entering circulation. History has shown that a bull run succeeds these events, roughly twelve to eighteen months later. 

Surviving the chill

While many can agree that the crypto winter is upon us, there is no saying how long it might last, or how low it may go. Analysts suggest that traders use the time to sharpen their investment strategies and implement plans of action that keep risk to a minimum. As blockchain and cryptocurrencies have already passed a significant milestone in their adoption, there is no stopping it now. For any traders concerned over the crypto winter, fear not. It will pass. 

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Many investors have made a lot of money through the stock markets, however, in recent years a new asset class has entered the scene. Not just any asset class, the best performing asset in the last decade. While conservative investors have steered clear, many investors have incorporated cryptocurrencies into their investment portfolios. 

In this article, we explore the differences between crypto vs stocks. While investments are driven by profits, understanding the difference between the two and what each one is is arguably fundamental to making any money from them. 

What Are Stocks? 

Stock, also referred to as equity or shares, is a financial product sold by companies that offer a percentage of ownership in the company. These "certificates of ownership" entitle the holder to dividends from the company's market performance. 

Stock in a company holds equal risk and reward. Should the company have a bad year, the stock price will reflect this with a decline in the unit price, but should it perform very well the price will increase. The profits are shared through a simple transaction.

These financial products are legally considered securities and are used by businesses or governments to raise capital from the market, offering the holder part ownership in the company selling the stock. Stocks are traded on authorised stock exchanges, of which there are over 60 around the world. The most popular are NASDAQ and the New York Stock Exchange (NYSE) which manage the sales of stocks relevant to that platform.

What Are Cryptocurrencies?

Cryptocurrencies are digital assets native to blockchain platforms. The first cryptocurrency launched in 2009 and provided an alternative cash system that allowed users to transact and store their funds without the authorisation of a third party. As a solution to the global financial crisis plaguing the world at the time, Bitcoin offered a decentralized solution to people taking control of their own money.

Following the launch of development-focused Ethereum several years later, cryptocurrencies started to offer solutions beyond just payment platforms. There are over 20,000 cryptocurrencies on the market today, ranging from utility tokens to governance tokens to meme tokens. 

Cryptocurrencies are defined as using blockchain technology to facilitate and maintain the network. Blockchain ensures that all transactions are recorded in a public ledger for anyone to see and are immutable. They also use cryptography to ensure the security of the network established through an elaborate means of information.

Cryptocurrencies can be traded on the following platforms, each incurring its own fees:

• peer-to-peer exchanges, where cryptocurrencies are directly traded between two users
• Decentralized exchanges, largely unregulated exchanges where there is no central authority 
• Centralized exchanges, operated as a business with an entity in charge and managing operations as well as regulatory obligations

Cryptocurrencies are largely considered to be "digital commodities" around the world, however, most countries are in the process of building a legal framework to better identify and regulate the new asset class. 

Due to their incredible growth and price gains over the last decade, cryptocurrencies have become a widely popular investment vehicle for both retail and institutional investors. 

Do You Have to Pay Taxes on Cryptocurrency?

As is the case with profits gained from any investment, individuals are required to pay taxes on their crypto earnings. While this remains largely unregulated, most countries have created a legal framework that requires users to pay on any profits made. These levies are then paid to the government and contribute to the functioning of the country. The onus lies on the individual to establish what these laws are and adhere to them.

What Are The Difference Between Crypto vs Stocks

Below we flesh out the differences between these two financial products to build a better understanding of the two. We'll be looking at:

Ownership 

Arguably the biggest difference between crypto and stocks is the ownership rights. Stock provides the holder with ownership rights vehicle cryptocurrency typically doesn't (in the traditional financial ownership sense at least). 

Cryptocurrencies are designed in such a way that their decentralized nature ensures that no one owns the network. Some cryptocurrencies provide governance rights that allow the holders to vote on network changes and have a say in the development of the project. 

Risk vs reward 

The cryptocurrency market is renowned for being more volatile providing considerably higher risks and rewards when compared to the stock markets. 

In a 5 year comparison, at the time of writing, NASDAQ has seen 167% growth while Bitcoin has seen 3,574% growth. 

Liquidity

Stock markets typically hold more liquidity as most stocks can be traded across exchanges and quickly converted to cash. Cryptocurrencies, particularly the smaller capped coins, hold less liquidity, although the bigger ones like Bitcoin and Ethereum can easily be traded on most exchanges. Bigger crypto exchanges have more liquidity due to the higher trade volumes on the platform. 

Regulation

Another big difference between crypto and stocks is the regulation aspect. While all stock exchanges have at least one government entity regulating all activity on the platforms, cryptocurrency is largely unregulated around the world.

Regulation in the crypto space is a developing topic as many countries are working to legally define the asset and implement it into their financial system. Having said that, most centralized exchanges are regulated, complying with laws in the countries in which they operate. For safe crypto trading ensure the platform you're using is regulated.

Investment Reasons

While both stocks and cryptocurrencies are largely invested in for profit-seeking reasons, the alternative motivators vary substantially. Some investors also invest in stocks due to the initiatives that the company supports. 

Cryptocurrencies on the other hand offer several more alternative investment motivators, including:

• Getting involved in the blockchain and dapp space
• Making use of its decentralized nature and lack of centralized authority
• Exploring a more discreet means of transacting and storing value
• Supporting an innovative product that offers a high-impact solution

In Conclusion

Stocks are a more popular and regulated investment vehicle while cryptocurrencies offer a higher risk vs reward opportunity. While stocks are considered securities are largely regulated, cryptocurrencies offer higher use case potential and have proven to have higher ROIs.

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