Learning the friendly way

We are delighted to announce the listing and support of Loopring (LRC) on Tap!

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

Addressing the speed and cost concerns associated with the Ethereum platform and decentralized cryptocurrency exchanges, Loopring delivers a new layer to the DeFi space. Describing itself as “an open-source, audited, and non-custodial exchange protocol,” Loopring is bringing something new and innovative to the space.

The Loopring Exchange aims to offer a hybrid platform combining the best features of centralized exchanges and decentralized exchanges, addressing issues like structural limitations and transparency. The platform combines centralized order matching with decentralized blockchain order settlement, using zero-knowledge proofs (ZKPs) for enhanced privacy, reduced costs, and high speeds.

The Loopring cryptocurrency, LRC, plays a crucial role in the operations of the protocol.
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To operate a decentralized exchange on Loopring, a minimum of 250,000 LRC needs to be locked up. This allows the exchange operator to utilize on-chain data proofs. Alternatively, an operator can stake 1 million LRC to run an exchange without this feature.

LRC serves as an incentive for the proper utilization of the Loopring network. Exchange operators who deposit LRC may face confiscation of their deposits by the protocol if they operate exchanges poorly. These confiscated funds are then distributed to users who choose to lock up LRC.

Get to know more about Loopring (LRC) in our dedicated article here.

We are delighted to announce the listing and support of The Graph (GRT) on Tap!

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

The Graph is a unique decentralized protocol that utilizes DLT (decentralized ledger technology) and the powerful GraphQL programming language to enable blockchain data collection without relying on third parties. The cutting-edge technology makes it simpler than ever before to index, organize, and query blockchain data information with remarkable accuracy and speed.

The Graph (GRT) is an ERC-20 token and the native token to The Graph network. The coin is integral to the reward system created to benefit indexers, curators, and delegators, which incentives them to improve the market and network operations. Participants of the network earn money by receiving The Graph GRT tokens, which have a market value when traded on the cryptocurrency market.

Get to know more about The graph (GRT) in our dedicated article here.

We are delighted to announce the listing and support of Lido (LDO) on Tap!

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

Lido's liquid staking service allows users to tap into the benefits of staking rewards without compromising their tokens' liquidity. Lido aims to empower users to put their staked assets to use, supporting a number of PoS cryptocurrencies. The platform offers a liquid staking solution that provides users with a system that allows them to earn rewards on staked coins while also receiving a tokenized version of the staked coins which can generate returns in other DeFi protocols.

The Lido DAO token (LDO) is an ERC-20 token, the native utility token to the Lido protocol used to reward users. The token has a total supply of 1 billion tokens and serves three primary functions.

The LDO token grants holders with governance rights in the operations of the Lido DAO, as well as the removal or addition of Lido node operators and helping with the management of fee parameters and distribution.

Get to know more about Lido (LDO) in our dedicated article here.

Bitcoin has become a worldwide phenomenon due partly to its incredible innovation in terms of technology and cross-border payments, but also because of its unbelievable market performance over the last decade.

The original cryptocurrency was even voted the top performing asset of the past decade, and there is no denying why. So, how does it all work? Today we’re uncovering everything you need to know about the inner workings of the most powerful cryptocurrency.

Bitcoin 101

Before we dive into how Bitcoin works, let’s cover the basics. Bitcoin is a peer-to-peer electronic payment system that was launched in 2009 by Bitcoin's creator, Satoshi Nakamoto, an anonymous entity that remains a mystery to this day. The Bitcoin blockchain ignited blockchain technology, propelling it into the 21st century and allowing anyone connected to the internet to embrace the new age of technology.

Bitcoin was designed as a response to the global financial crisis and set to be a decentralized payment system that was exempt from banking institutions’ central authority and errors. Over the past decade, the cryptocurrency has increased in value, hitting $20,000 for the first time in 2017, again in December 2020, before soaring to highs of $68,789.63 in November 2021.

The Bitcoin blockchain network has also paved the way for many other virtual currencies, of which there are currently over 20,000. The industry has grown into a sizable $1 trillion market (valued at one stage at over $3 trillion), most of which has Bitcoin to thank. Bitcoin currently dominates the market with a 40% share and has created a name for itself in the mainstream as more and more businesses decide to accept Bitcoin.

How exactly does Bitcoin work?

Now that we’ve covered the basics, let’s get into the nitty-gritty. As previously mentioned, Bitcoin is a peer-to-peer digital currency that does not rely on any third-party financial institutions, banks or governments. Instead, the network and all Bitcoin transactions are operated by a network of nodes (computers) and miners. Users store Bitcoin in a digital wallet.

In simple terms, miners are responsible for verifying transactions while nodes keep records of all the transactions on the Bitcoin network. All transactions are added to the blockchain, which is a public ledger of all activity on the Bitcoin network. This is a simple look at how Bitcoin mining works.

Looking more deeply into this, let’s say one person in Belgium is sending Bitcoin to someone in England. The Belgium person will enter the Bitcoin address (also known as a wallet address) of the recipient and indicate how much they would like to send. The Bitcoin wallet through which it is being sent will calculate the transaction fees, the Belgium person will confirm (also checking they are happy with Bitcoin's price), and the Bitcoin transaction will enter a “mempool” of new transactions.

From here, Bitcoin miners will fight to solve a complex mathematical puzzle and the first one to do so correctly will be allowed mine the next block and verify all pending Bitcoin transactions (the process of Bitcoin mining). The miner will then verify that all senders of the transactions have sufficient balances, and the transactions will be executed.

The miner will then add the new block to the blockchain, and it will be circulated amongst the network. Once all the nodes approve, they will all update their blockchain records with the new block.

The person in England will then get a notification to say that they have received the Bitcoin transaction, and will most likely require 3 confirmations before being able to access the funds (some digital wallets and merchants require 6 confirmations). Confirmations are represented by new blocks added to the blockchain following the block with that specific transaction. Blocks take 10 - 40 minutes to be created due to the Bitcoin mining process.

While this is how Bitcoin transactions take place, other cryptocurrency transactions might vary slightly.

Where do new Bitcoins come from?

Satoshi Nakamoto designed the cryptocurrency to be deflationary in nature, intending the price to increase over time as opposed to decreasing like fiat currencies, offering not only a reliable payment method, but also an investment opportunity. Bitcoin has a fixed supply of 21 million coins, with a certain number being released each year.

Initially, the mining reward for mining a block on the Bitcoin blockchain was 50 BTC, but after every 210,000 blocks (roughly 4 years) the reward halves. In May 2020, the third halving took place, driving the block rewards down to 6.25 BTC per block. This equates to roughly $230,000 at the time of writing.

So where do new Bitcoins come from? Each time a miner verifies a bundle of transactions, the miner will receive each transaction’s network fee and once they have mined enough transactions to complete a 1MB block and add it to the blockchain, they will receive the mining reward too. 

Once the 21 millionth coin has been mined no new coins will ever enter circulation. 

Ready to enter the wonderful world of Bitcoin?

Now that you understand more about the original cryptocurrency and how Bitcoin works, are you ready to enter the market? For easy onboarding, Tap provides a secure platform from where anyone can buy and sell Bitcoin and a number of other cryptocurrencies. Secure, easy to use, and conveniently accessible through a mobile app, Tap is both beginner friendly and perfect for seasoned traders.

Public and private keys are integral to the use of cryptocurrencies. They not only allow people to send and receive cryptocurrencies but also to maintain the security and ownership of the funds. Private and public keys are generated when one creates a digital wallet.

What is a private key?

Every cryptocurrency wallet consists of a public key and a private key. Anyone can deposit cryptocurrency into a public address (public key), but no one except the owner of the corresponding private key can remove funds from that same account.

A private key, also known as a secret key, is a random string of numbers and/or letters used to protect one's cryptocurrency wallet and receive crypto transactions, similar to a pin code for a bank account. Private keys prove ownership of one's wallet address, protect it from unauthorized access and theft, and are used to sign transactions on the blockchain. 

Private keys are used in conjunction with an algorithm to encrypt or decrypt data. The holder of the private key should be the only one who knows it, as this secrecy is what gives the private key its power. The golden rule is to keep your private key safe.

Private key vs public key

Public and private keys are mathematically linked to each other and relevant to only one blockchain wallet. A public key can be compared to your traditional bank account while the private key is akin to the pin code to access this account. 

Users would share the public key with anyone looking to transfer funds to their crypto wallet, however, under no circumstances should your unique private key ever be shared with anyone. It is also strongly recommended that one stores their private key offline in a safe space, and not on a desktop or accessible location (in the event of a hack).

When one loses their private key, whether lost or maliciously taken, they will lose access to their crypto funds. Due to the decentralized nature of cryptocurrencies, there is no support line or central authority that can access that information.

This is where exchange wallets come in handy as the account is created using an identity that once verified can gain access to the funds. This is known as a custodial wallet where the platform holds the private keys for you and allows you to access the funds through a user-generated password. When it comes to storing private keys, this is the most convenient option, however, if you use an untrustworthy platform that increases your risks greatly. It is strongly recommended to enable two-factor authentication when using this option.

How do private keys work?

A public key is generated using complicated mathematics by your private key, ensuring they form a matched pair. These digital keys are created when one creates their crypto wallet on a particular blockchain. 

After being generated, a private key must be stored in a secure location, ideally offline. Furthermore, private keys can have an extra layer of security by being password-protected, encrypted or hashed, ideally all three.

The owner of the public key will use the private key to encrypt the digital signature when making a transaction. 

A transaction is encrypted using a public key and can only be decrypted by using the matching private key. Therefore, when someone sends a transaction they will need their private key to decrypt and prove they own the funds being used in this transaction. 

The private key is used to sign the transaction, which verifies that the transaction hasn't been modified. A digital signature is created when someone combines their private key with the data that's being sent as part of a transaction. 

Once the transaction has been executed the nodes on the network will check and authenticate the details of the transaction and if any information is incorrect the transaction will be rejected. Once executed transactions cannot be reversed. 

Where should you store your private key?

Your private keys are essentially your passwords, so it's of utmost importance that you keep them safe.  Your best bet is to store them offline somewhere safe. This might mean written on a piece of paper, stored on an offline device, or kept in a password manager.  As mentioned above, public keys can be stored anywhere and shared with anyone.

To avoid the hassle and stress of ensuring the safety of your private keys at all times, you can use a hot wallet supplied through a reputable exchange. If you choose to take this route ensure that the crypto platform is regulated and adheres to stringent security measures. The Tap app ticks these regulatory boxes and ensures that customers have full access to their funds at all times, without the risk of losing them if they lose their private keys. 

In conclusion

Private keys are digital passwords used to establish one's ownership in a crypto wallet and are created in conjunction with the public key of the same wallet. One should never share their private keys with anyone. 

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Here we discuss what dividends are and how they work so you can make informed decisions when investing in dividend paying stocks. As a company, regular dividend payments create an incentive for shareholders to remain invested and keep the business growing, while for investors a dividend payment can increase the overall ROI and provide additional income streams. Learn the difference between stock dividends and cash dividends below.

What is a dividend?

Dividends are a way for companies to share their profits with shareholders. When a company earns profits, it can choose to distribute those profits back to its shareholders in the form of dividends. Dividend payments are typically made in cash and are usually paid out every quarter or semi-annually. Dividend paying companies can also choose to pay stock dividends, which is essentially dividend income paid out in shares.

By investing in dividend paying stocks, investors have the potential to earn regular income from their investments as well as benefit from capital appreciation when stock prices rise.

Dividend paying stock and the stock exchange

Investors in the stock market can earn returns in two ways, one is through an increase in the stock price from when they purchased it, and the other is through dividends. A company can decide whether they pay out dividends or not, and it's worth noting that not every company on the stock market does pay out dividends. The ones that do are typically mature ones. 

Companies might instead decide to use the profits to reinvest in the company, hire new employees, or expand their business. Start-ups and newer companies are more likely to take this approach as their goals are more aligned with growth. 

These payments are made in cash and generally occur at regular intervals, be it quarterly or annually. The amount per share, and when and how often dividends are paid out are determined by the company's board of directors.

Why a company might pay dividends 

When a company is profitable, it might do one of these three things with its profits:

• pay off debt
• chase a growth opportunity by reinvesting the money into the business
• pay dividends to their shareholders, attracting new ones and rewarding current ones

Companies pay dividends to reward their shareholders, generating a steady income stream, and increasing the overall value of their stock. Additionally, dividend payments can be used to attract new investors and signal financial strength. Only profitable companies will pay out dividends, and typically ones without significant debt. 

Stocks that pay dividends

Whether a company pays dividends is directly related to its goals and priorities. As mentioned above, younger companies typically use profits to reinvest in the business as the current goal is growth, while more mature, established companies opt to reward (and attract) shareholders. 

Growth stocks

Companies looking to capitalize on growth opportunities might make the wiser move by reinvesting their earnings instead of offering dividends to shareholders. 

Let's use retail as an example. If a company has just released a new product, it'd likely benefit more from hiring additional salespeople who can promote it than partaking in payouts for investors. In doing so, this allows the business to seek out maximum returns and drive the stock price up instead of giving away potential gains prematurely.

Mature stocks

As companies reach their peak and shift to a sustaining stage, they are more likely to prioritize dividend payments for shareholders over investing any additional funds into growth. 

Ultimately, leaders must determine what is best for the company's shareholders depending on its size and age: paying dividends, funding development opportunities, or debt reduction. The ideal choice depends heavily upon the organization’s state of expansion as well as other considerations.

Mutual funds and ETFs

Investors in mutual funds and exchange-traded funds can also tap into dividend income provided that the stocks pay dividends. These are typically paid out on an annual basis, however, this will be determined by the shareholder's brokerage account.

Timeline of dividend payouts

Whether a company pays out dividends at regular intervals or on a once-off basis, below are several dates to note with regard to the when and how of these payments. From the declaration date to the ex-dividend date to the payment date, these all play an important role for investors looking to benefit from dividend yield.

• The Declaration Date

When the Board of Directors announces the value, record date, and payment date for the upcoming dividend.

• Ex-Dividend Date

The ex-dividend date is the final date by which you can buy the stock and earn dividends. If you purchase stock after the ex-dividend date you are not liable to receive dividends. Stock purchases can sometimes take two days to clear so ensure that you do so at the right time. 

• Record Date

The date that you need to be an official shareholder in order to receive dividends. If your stock purchase is not settled by this date you are not liable for the payouts. The record date is typically one date after the ex-dividend date.

• Payment Date

When payments are made to all registered shareholders (as of the record date). Depending on the preferences specified in your brokerage account, the dividend could either be credited to you as cash (cash dividends) or reinvested back into the issuing business, distributed as stock dividends. 

How dividend payments can affect the share price

Due to dividends being paid out by profitable businesses, when a business does pay out dividends this sends a signal to the market that the business is doing well and could drive the stock price up. However, it could have the opposite effect too, driving the price down when there is no dividend payout. 

• when dividends drive the stock price up

Dividends can be a celebration of a company's profits and act as rewards to shareholders for investing in the company. This makes the stock more attractive to investors looking to earn passive income and will ultimately drive the price up. 

• when dividends drive the stock price down 

Companies generally pay dividends only when they are assured that the rate of return can be sustained, thanks to reliable profits. Therefore, if a company announces any reduction in this rate of dividend payment, it is likely because their business is encountering certain difficulties, sending out a negative signal instead.

In conclusion: what is a dividend payment?

A dividend is a payment that companies make to their shareholders, usually in the form of cash or stock. It's a type of reward for investors who have held onto the company's shares for a certain period of time. Usually companies pay dividends on a quarterly basis, often based on a portion of the company’s profits.

Because dividends are usually paid in cash, they can be a great source of income for investors. This extra income comes with less risk than other types of investing, which makes them attractive to many people who are looking for reliable returns on their investments. Dividend stocks also tend to outperform the overall stock market.

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