Learning the friendly way

The crypto markets are in the midst of a serious slump. While bear markets are a natural process within the economic cycles and should not be feared, many look to these times as an opportunity to accumulate cryptocurrencies in what has become known as "buying the dip".

Bitcoin currently undervalued

According to the United States investment company, JPMorgan Chase, who valued Bitcoin at $38,000, the biggest cryptocurrency is currently undervalued. With Bitcoin essentially selling at a "discount", now is a great time to establish whether you should buy the dip. 

It is believed that the crypto markets have taken a knock following the war instigated by Russia on Ukraine, the global rising inflation rates, a looming recession and the potential energy crisis that could plague Europe. Despite the global market turmoil, cryptocurrencies have proven to be incredibly resilient over the years.

There are of course a few things to consider, mainly your appetite for risk and your currency income bracket. As the golden rule goes: never invest more than you're willing to lose. Another important component to consider when deciding whether to buy the crypto dip is where you see the cryptocurrency going in the future. Do you believe in the project's fundamentals, and that its user base will continue to grow?

Despite the cryptocurrency being 70% down from its all-time high price achieved in November 2021, industry insiders remain bullish. Chris Brendler, managing director at D.A. Davidson, believes Bitcoin will be trading at $38,000 by the end of the year, and $50,000 by the end of 2023. Jurrien Timmer, director of global macro at Fidelity Investments, on the other hand, believes that it will be worth up to $100,000 in 2024. 

Is it the right time to invest in cryptocurrencies?

Since its inception over a decade ago, Bitcoin has amassed a devoted following. However, it's impossible to say now whether Bitcoin will become the world's reserve currency or a universally acknowledged store of value, like gold. Some investors are frightened by the rush of riches or downfall, while others are enthusiastic about the potential for large gains. in the crypto market.

In 2022, Bitcoin is considerably less hazardous than it was in 2012 and is widely regarded as being a revolutionary technology. In today's geopolitical climate, Bitcoin has risen to the forefront. El Salvador's decision to legalize Bitcoin as legal money in 2021 is expected to encourage other nations to do the same, however, others may choose against it out of fear of losing their fiat currency. 

Buying Bitcoin, also known as making a Bitcoin investment, like any speculative investment, involves a degree of risk. Bitcoin was the first digital asset to give rise to the contemporary crypto economy. For many years, it had a hidden following of crypto investors who believed it may eventually replace the physical monetary system. As institutions and governments seek to satisfy their customers' growing demand for exposure, Bitcoin has grown.

In order to get the most out of a Bitcoin investment, one must know when to buy. The Bitcoin market is unpredictable and may switch rapidly, with fluctuations ranging from minutes to weeks and even months. As a result, determining the right time to buy one's digital currency is crucial.

There is no such thing as a perfect time to make a crypto investment, however, buying when in a dip or a bear market allows for lower price points. 

While Bitcoin remains the biggest cryptocurrency, there are alternative investment options to consider such as Ethereum, the second biggest cryptocurrency. Ethereum was designed as a blockchain platform on which developers could create their own blockchain-based apps, known as decentralized applications (apps). When buying the dip, investors tend to stick to the top-ranked cryptocurrencies.

Buying crypto during a bear market

In the world of cryptocurrencies, a dip is when you buy something after its value has dropped. Buying a dip indicates that you have an opportunity to invest in a digital currency or token whose price has fallen, whether it be short or long-term. A bull market is typically a good time for you to sell Bitcoin, while a bear market is a good time to buy Bitcoin.

A bear market is any decline in the market price of at least 20% over a set period of time. The December 2017 Bitcoin price crash is one such example, in which the price of Bitcoin fell from $20,000 to $3,200 in just a few days. According to folklore, the term "bear" is said to derive from a bear's fighting style, which involves using its claws in a downward motion. Others speculate that it has to do with bears going into hibernation in the winter. 

Traders prefer to acquire assets during a bear market, particularly when they are at low prices. However, determining when a bear market has come to an end makes it difficult for investors to take the risk of buying a low-value cryptocurrency that may or may not recover.

When investors learn about unfavorable circumstances involving a specific cryptocurrency or asset, the market price commonly drops. As a result of the negative spiral, more people delay investing because they believe that more terrible news is on the way and that they should prepare for the worst.

This causes the market to lose more ground as a result of panic selling and contributes to the downward trend in crypto prices. Bear markets eventually subside when investors gradually regain their confidence and buy Bitcoin, ushering in a new bull cycle.

Bear markets are a great time for Bitcoin investors to take advantage of the price swings. When Bitcoin funds are low, this typically equates to lower fees on Bitcoin transactions as well, which can help to propel Bitcoin adoption.

Is now the right time for a Bitcoin investment?

We must first assess the market's overall attitude to determine whether now is a good time to invest in Bitcoin. 

According to the crypto Fear and Greed Index, it is currently positioned on "extreme fear" indicating that it is trading well below its intrinsic values.

The "Bitcoin Monthly" report issued by Ark Invest reported that 'Hodlers,' are more powerful than ever before, with 66% of Bitcoin's supply remaining unchanged for almost a year. This illustrates the market's long-term dedication.

According to Glassnode data, short-term investments dropped -35% below the breakeven price in the third quarter. These statistics were last seen in January 2022, July 2020, and March 2020. The aggregate long- and short-term holdings are still above the breakeven price, implying that widespread capitulation has not occurred.

Trading Bitcoin in the current crypto market conditions

Finally, it all boils down to whether or not you feel comfortable putting your money into the current market conditions. There is no easy solution to when is the best time to invest in Bitcoin. We are still early in the game, and Bitcoin, as well as the entire sector, has a lot of room for development. This implies that the investment opportunities for investors will likely continue. 

Disclaimer: This article is intended for communication purposes only, you should not consider any such information, opinions or other material as financial advice. This information is specific to that of the Bitcoin market and should not be translated to the traditional stock markets. The crypto market is an entirely different asset class and crypto holdings should be treated as such.

The information herein does not constitute an offer to sell or the solicitation to purchase/invest in any crypto assets and is not to be taken as a recommendation that any particular investment or trading approach is appropriate for any specific person.

There is a possibility of risk in investing in crypto assets and investors are exposed to fluctuations in the crypto asset market. This communication should be read in conjunction with Tap's Terms and Conditions.
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_{Disclaimer: This article is intended for communication purposes only, you should not consider any such information, opinions or other material as financial advice. This communication should be read in conjunction with Tap’s Terms and Conditions.}

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Crypto lending might be the hot new product in the cryptocurrency space, but before you dive in be sure to first understand what it entails. The concept grew great traction with the rise of the decentralized finance (DeFi) movement, with platforms offering users high yields for borrowing crypto assets. 

Let’s get started with what crypto lending is, and then explore how the product works. 

What is crypto lending?

Crypto lending is a traditional banking service curated to the crypto world. With the DeFi space remains largely unregulated, many crypto exchanges and other platforms have started offering these services, with added security. 

Crypto lending involves a user lending crypto assets to a platform in return for interest, which allows other users to then borrow said crypto assets, paying interest on the amount borrowed. The platform will then take a small percentage of the interest paid. 

Depending on the platform and other factors, crypto lending platforms may be centralized or decentralized and offer exceptionally high-interest rates, with annual percentage yields (APYs) of 15% or more. With the interest rates being higher than traditional bank accounts, lenders gain access to much greater yields, increasing their returns. 

Another advantage to crypto lending is that users are still exposed to price gains in the market. Meaning that if you deposit your Bitcoin when it's worth $20,000 and the price rises in value to $50,000, you are still able to realize these returns and earn interest for the duration of the loan. 

Note that interest rates might fluctuate with market conditions on some platforms, increasing when the prices increase and decreasing when markets are down.

How does crypto lending work?

Cryptocurrency lending platforms function as middlemen connecting lenders to borrowers. Lenders deposit their digital currency into high-interest lending accounts, and borrowers utilize the lending platform to acquire loans. These systems then lend money utilizing the crypto that investors have provided them.

The platform controls its net interest margins by establishing the interest rates for both lending and borrowing.

Rates on platforms differ from cryptocurrency to cryptocurrency, some platforms might offer higher interest rates to lenders willing to commit to a certain time frame. There is no standard interest rate for cryptocurrencies, as each platform has its own set of rules.

Centralized crypto lending means putting your money in the hands of a corporation or other entity to manage and make the process easier. Accounts are created for borrowers and lenders, and loans may be requested by applicants.

Lenders and borrowers may connect their cryptocurrency wallets to a decentralized crypto lending protocol, ​​which uses smart contracts to automate the lender-borrower relationship. Smart contracts are automated digital agreements that execute once certain criteria is met. 

The advantages of crypto lending

There are several benefits to crypto lending when comparing it to a regular bank account.

Borrowers have access to these financial services without having to pass a credit check, making it more financially inclusive than traditional banking services. They are also exposed to lower interest rates than regular banking loans.

Lenders that give loans in the form of cryptocurrencies can make a lot more money from their crypto assets than savings accounts. It may also be a more adaptable choice to crypto staking, which requires users to lock up their cryptocurrency and submit it to a blockchain security method. Depending on the platform, lending usually gives users access to their funds.

The downside to crypto lending

The agreement with crypto loan companies is generally made on individual terms by institution borrowers. As interest rates vary across platforms and cryptocurrencies, each company is different.

There have been several cases where lending platforms have been hit by severe liquidity crisis, notably Celsius, Voyager Digital, and BlockFi. Glenn Huybrecht, COO of Cake DeFi, said, “Some lending providers have been very generous with low collateral requirements, which then puts them in hot water when one of their customer's defaults.”

Due to the ongoing regulation battles, these crypto services are also not backed by government safety nets, like the traditional banks are. However, some platforms do hold insurance and the necessary regulatory accreditations so be sure to seek one that has all of the above.

Closing thoughts

Crypto lending platforms differ greatly from one another so be sure to check each platform, their interest rates for all the various currencies supported, and if there are any lock-up periods or fees payable. 

We are delighted to announce the listing and support of Ankr (ANKR) on Tap!

ANKR is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold ANKR 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 ANKR 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.

Ankr is playing an integral role in the adoption of Web3, providing growth and development opportunities for network stakers, app developers, and other participants in the DeFi space.

Ankr is a decentralized Web3 infrastructure provider that facilitates the swift and effortless connection between developers, dapps, stakers, and blockchains. With Ankr's APIs & RPCs you can quickly build blockchain-based applications with confidence, stake on Ankr Earn as well as access custom solutions for any blockchain enterprise needs.

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Get to know more about Ankr (ANKR) in our dedicated article here.

n the world of finance and technology, benchmarks are a vital tool for measuring performance and quality. A benchmark is a standard or point of reference used to evaluate the performance or quality of something, such as investment returns or the efficiency of software and hardware systems. This article will explore what benchmarks are, why they are used, provide examples, and explain how to use benchmarks to make more informed investment decisions.

What is a Benchmark?

A benchmark is a standard of comparison used to evaluate the performance or quality of something. In finance, benchmarks are often used to compare the performance of investments to a specific market index. For example, the S&P 500 index is a commonly used benchmark for evaluating the performance of a portfolio of stocks.
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Benchmarks are also used in the technology industry to evaluate the efficiency and performance of hardware and software systems. For example, a computer's processing speed may be benchmarked against industry standards to determine how well it performs compared to other computers on the market.

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Why are Benchmarks Used?

Benchmarks are used for a variety of reasons. In finance, benchmarks are used to evaluate the performance of an investment or a portfolio of investments. By comparing the performance of an investment to a benchmark, investors can determine whether their investment strategy is successful or not.
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In the technology industry, benchmarks are used to evaluate the efficiency and performance of hardware and software systems. By benchmarking a computer or a software system against industry standards, developers can determine how well their product performs compared to other products on the market.
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Examples of Benchmarks
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There are many different benchmarks used in finance. Here are a few examples:
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1. S&P 500 Index - This is a benchmark used to evaluate the performance of a portfolio of stocks in the United States. It is widely used by investors as a measure of the overall performance of the U.S. stock market.
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2. Dow Jones Industrial Average - This is another benchmark used to evaluate the performance of the U.S. stock market. It is based on the stock prices of 30 large U.S. companies.
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How to Use Benchmarks

To use a benchmark, you first need to select the appropriate benchmark for your needs. For example, if you are evaluating the performance of a portfolio of stocks, you would select a stock market index such as the S&P 500 or the Dow Jones Industrial Average.
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Once you have selected a benchmark, you can compare the performance of your investment or product to the benchmark. If your investment or product outperforms the benchmark, then it is considered successful. If it underperforms, then you may need to adjust your investment strategy or product development.
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How Do Benchmarks Help You Make More Informed Investment Decisions?

Benchmarks help investors make more informed investment decisions by providing a standard of comparison for investment performance. By comparing the performance of an investment to a benchmark, investors can determine whether their investment strategy is successful or not.

For example, if an investor's portfolio of stocks outperforms the S&P 500 index, then the investor can be confident that their investment strategy is successful. However, if the portfolio underperforms the S&P 500, then the investor may need to reevaluate their investment strategy.

Benchmarks also help investors identify trends in the market. By tracking the performance of a benchmark over time, investors can identify trends in the market and adjust their investment strategy accordingly.

Conclusion:

In conclusion, benchmarks are a fundamental tool used in finance and technology to measure performance and quality. They provide a standard of comparison that helps investors and developers evaluate the success of their investments and products.

Using benchmarks to evaluate investment performance and product efficiency can help you make more informed investment decisions. By comparing the performance of your investments or products to industry standards, you can determine whether your investment strategy or product development is successful or not.

Overall, benchmarks are an essential tool for evaluating performance and quality, and understanding how to use them is crucial for success in finance and technology.

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We're thrilled to share that our fintech company has just celebrated its third anniversary! It's been an incredible journey so far, and we're so grateful for the opportunity to serve our users every day.

When we first launched our platform three years ago, we had a clear mission in mind: to provide an innovative, user-friendly, and accessible way for people to manage their money, trade cryptocurrencies, and access financial services. It was a big goal, and we knew that we had a lot of hard work ahead of us.

But we were determined to succeed. Our small team of passionate and dedicated individuals worked tirelessly, day in and day out, to bring our vision to life. We poured our hearts and souls into this project, and we knew that we were onto something special.

Fast forward three years, and we're proud to say that we've come a long way. We've built a platform that we believe in, and we're constantly striving to improve it. We've listened to feedback from our users, and we've added new features and services that meet their needs. And we've built a community of passionate and engaged users who share our vision for a better way to manage their finance everyday.

One of the things that sets our company apart is our commitment to transparency and user experience. We believe that managing your finances should be easy, intuitive, and stress-free. That's why we've built our platform to be as user-friendly as possible, with clear and straightforward interfaces that make it easy to manage your money and digital assets.

But our success wouldn't be possible without our amazing users. We're so grateful for your continued support, feedback, and encouragement. You've helped us to shape our platform into something truly special, and we're committed to continuing to serve you and improve our platform to meet your needs.

As we celebrate our third anniversary, we're excited to look back on how far we've come and to look forward to all the exciting things that the future holds. We're proud of what we've accomplished, but we know that there's always more work to be done. We're committed to continuing to innovate and improve, and we're grateful to have you along for the ride.

Thank you for being part of our journey. Here's to many more years of growth, success, and innovation!