The financial world is currently undergoing a remarkable technological transformation, led by the rise of open banking, open finance, and embedded finance. While these terms may seem similar, each represents a distinct approach with unique implications. Understanding the nuances between these emerging service models is not only interesting but will add value to your endeavours in the financial realm. Ultimately, they hold the power to fundamentally reshape how we access and manage our money.

In this article, we'll explore the defining characteristics of each trend - their origins, benefits, and the broader ecosystem in which they thrive. 

What is open banking?

Origins and key principles

At the heart of the financial technology revolution lies open banking - a model that has its origins in the need for increased transparency, competition, and consumer choice within the banking industry. 

The key principles of open banking centre around empowering individuals and businesses to securely share their financial data with third-party providers, like fintechs for example, enabling a new era of innovative services and personalised experiences.

Regulatory frameworks

Regulatory frameworks like the European Union's Payment Services Directive (PSD2) have been instrumental in systemising and accelerating the open banking movement, in fact, it has been referred to as the “starting point” of the open banking solution. 

These regulations have encouraged fintech firms and developers to use customer data from banks securely through APIs, leading to better products and services.

Benefits for consumers and businesses

Open banking brings numerous benefits for both businesses and consumers. 

• Consumers can control their financial data better, manage accounts across different institutions easily, and use personalised money management tools. 
• Businesses can integrate banking features into their platforms using open APIs, enhancing customer experience and creating new revenue streams. 

There’s no denying that the open banking revolution is picking up speed, so expect significant changes in the financial landscape ahead.

What is open finance?

Key principles

While open banking has revolutionised how we interact with our bank accounts, open finance takes things even further.

Instead of just focusing on banking data, open finance allows the secure sharing of information across a wider range of financial services. This could include investment portfolios, insurance policies, loan details, and even pension information.

In essence, open finance takes a broader view, considering a person's entire financial picture and serves as a comprehensive framework that outlines how open banking principles should operate within the greater financial economy.

Accessing a broader range of financial data

By bringing all this data together, consumers and businesses gain a more complete view of their overall financial health. This unlocks new possibilities and opportunities, such as:

• Lenders can provide more personalised loan offers
• Wealth managers can deliver tailored investment strategies
• Insurance providers can price policies more accurately
• Individuals can take a unified approach to budgeting, saving, and achieving financial goals

What is embedded finance?

Integrating financial services into non-financial platforms

Embedded finance represents a major shift in how people interact with financial services. Instead of relying solely on traditional banking platforms, this approach involves seamlessly integrating banking capabilities right into the everyday digital tools and apps people already use.

An example of embedded finance would be a user being able to access banking features directly within a shopping app or a ridesharing platform. Parties can seamlessly engage with the financial services within the app, whether for exchange, payment or tipping.

Improving customer experience and accessibility

By embedding financial features into non-financial environments, companies can dramatically improve the customer experience. Consumers gain frictionless access to banking, lending, payments, and other services without having to leave the digital spaces they might find themselves in. This enhanced accessibility and convenience can lead to higher engagement and loyalty, further spurring the evolution of the digital financial landscape.

Real life examples of embedded finance applications

You can find examples of embedded finance all around you. Examples include e-commerce platforms that offer buy-now-pay-later options at checkout or ridesharing apps that allow in-app tipping and payouts and retail apps that provide integrated spend tracking and budgeting tools. The common thread is the ability to deliver financial services in a natural, contextual way that feels like a seamless part of the user's experience.

As embedded finance continues to grow, the boundaries between banking, commerce, and everyday digital life will keep blurring. This intersection promises to redefine how individuals and businesses manage their financial lives in the years ahead.

Comparing their approaches

The key differences between open banking, open finance, and embedded finance lie in their scope, technological needs, and regulatory factors.

Open banking focuses specifically on banking data and services, while open finance encompasses a wider range of financial information beyond just banking.

The technological requirements also vary, with open banking relying on secure APIs to share data, and embedded finance integrating financial capabilities directly into non-financial platforms.

Regulatory oversight is another distinguishing factor, with frameworks like PSD2 driving open banking, while open finance and embedded finance navigate a more diverse regulatory landscape.

Conclusion

In summary, open banking, open finance, and embedded finance represent a profound transformation in how we access and interact with financial services. Open banking unlocks banking data, open finance expands to broader financial information, and embedded finance seamlessly integrates financial capabilities into everyday digital experiences. 

As these trends continue to evolve, staying informed on the latest developments will be key for consumers and businesses to navigate the changing financial landscape and capitalise on the benefits these innovations can provide. Consider this movement as the future of finance unfolding before our eyes.

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Volatility has become a defining characteristic of the cryptocurrency market, however, it doesn’t need to be a negative thing. As these digital assets experience significant price swings, driven by factors like speculation, regulation changes, and technological developments, this presents a perfect opportunity to potentially generate substantial returns. 

This article explores strategies to capitalise on crypto volatility, including dollar-cost averaging, swing trading, leverage, and arbitrage. By understanding and embracing volatility, investors can navigate the market's ups and downs and potentially unlock rewarding gains in this dynamic landscape. Let’s dive in.

Understanding what volatility is

Volatility in finance refers to how much an asset price moves up and down over time. There’s no denying that cryptocurrency prices are known for being highly volatile and changing a lot in a short time, or that in many cases this has led traders to a rather healthy return on investment. While also synonymous with the stock market, volatility is typically caused by things like investors speculating and trading based on emotions, news stories that impact cryptocurrencies or shares, and uncertainty around government regulations or geopolitical events. 

Since cryptocurrencies are still fairly new and can be traded globally 24/7, their prices tend to swing wildly. These unpredictable price swings are common in crypto markets, so it's important to understand what causes the big ups and downs, how they contribute to greater economic growth, and to understand the importance of having a solid risk management strategy in place. 

Strategies for capitalising on crypto volatility

No matter which currency you are trading, one common strategy in taking advantage of volatility is dollar-cost averaging (DCA), this means investing a fixed amount at regular intervals regardless of price. DCA allows you to buy more when prices are low and less when prices are high, smoothing out the impact of volatility over time. For example, investing $100 weekly into Bitcoin.

Another approach is buying the dips, purchasing after a price drop, aiming to get in at lower levels. However, trying to "catch a falling knife" by buying too early carries risks. Technical analysis can help identify potential dip-buying opportunities for finding the best value.

Taking profits during rallies is also a key strategy used by investors. This involves setting target prices to sell portions of your holdings allowing you to secure gains amid volatility. A trailing stop-loss strategy can automate this, selling if prices retrace a set percentage from recent highs. It's important to remember that this strategy needs to be monitored and adjusted according to market movements.

Don't put all your eggs in one crypto basket. Diversification is crucial for managing risk in volatile markets. Spread investments across various cryptocurrencies, stablecoins, and asset classes like stocks to buffer volatility's impacts.

While lucrative opportunities exist in crypto volatility, appropriate risk management is crucial. Start small, learn strategies gradually, and as the trading law goes: never risk more than you can afford to lose.

The importance of proper risk management

Managing risk carefully and having an effective risk management plan in place is very important when trading cryptocurrencies like Bitcoin, Ethereum and other altcoins. Using stop-loss orders to automatically exit losing trades and sizing your position properly for your account size can help limit losses. However, be cautious about overtrading or putting too much money into extremely volatile crypto assets. Having too much exposure increases your risks dramatically and may cost you in the long run.

Instead, make sure that you diversify your portfolio and follow a disciplined trading plan as responsible risk management protects your capital and helps ensure long-term success in this unpredictable market.

Conclusion

While volatility defines the cryptocurrency market, it also presents opportunities for savvy investors. By embracing strategies like dollar-cost averaging, buying dips, taking profits during rallies, and diversifying across assets, you can navigate volatility's ups and downs. However, proper risk management through stop losses, position sizing, and avoiding overexposure is paramount. 

Start small, learn gradually, and never risk more than you can afford to lose. With discipline and a solid strategy, you can unlock crypto volatility's potential rewards while mitigating risks in this dynamic landscape. The key is understanding volatility's drivers and harnessing its power through proven tactics. Approach with caution, but don't let volatility's roller coaster scare you away from crypto's wealth-building possibilities.

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TON (The Open Network) is a new blockchain system created by the team behind Telegram. Making waves in the industry, the network aims to solve common problems with existing blockchain, notably:

• Scalability: handling more transactions
• Speed: processing transactions faster
• Usability: making it easier for people to use

TON's core component is the TON blockchain, on top of which the TON ecosystem exists. By tackling these issues, TON hopes to make blockchain more practical and widely used. It wants to turn blockchain from just an interesting idea into something that can be used in the real world.

The story behind TON

TON's story began in 2018 when Telegram, the popular messaging app, announced its ambitious blockchain project. Founded by brothers Pavel and Nikolai Durov, TON was envisioned as a fast, secure, and scalable blockchain platform.

The Durovs aimed to create a decentralized network that could handle millions of transactions per second, making it suitable for global adoption. Their vision included adding a new cryptocurrency called Gram to Telegram. This would let Telegram users send money and use blockchain apps right from the messaging app. 

Despite facing regulatory hurdles in 2020, which led Telegram to officially step back, the project found new life. The TON community took over development and since then, TON has achieved several milestones, including mainnet launch and growing ecosystem support.

The TON blockchain architecture

TON uses a multi-chain architecture with two main parts: the TON masterchain and workchains. The masterchain, the backbone of the system, handles important tasks like updating protocols, validating transactions, and managing interactions between different chains. 

The workchains are smaller, customizable networks that can run on their own and are used for various purposes. Then there are shard chains which split up work for faster processing. This setup helps TON handle lots of transactions quickly.

The TON ecosystem is anchored by TON Coin (TON), used for gas fees, processing costs, and storage payments. It is also essential for becoming a blockchain validator.

This coin powers various applications and services built on TON, enriching its functionality while smart contracts let people create automated agreements and apps, used for things like online payments or voting systems.

These smart contracts are run by the TON Virtual Machine (TVM), designed to be fast and use less energy than other systems. This makes TON more efficient and easier to use for developers.

Key features of TON

Decentralised

TON isn't run by one company or group, instead, it's controlled by a community of users and developers. This makes it resistant to anyone taking it over or shutting down the network.

Interoperability

TON is able to connect with other blockchain networks and dapps. This allows users to easily move things like money or data between different systems.

Scalability

TON can handle lots of transactions at once. It does this by splitting into smaller interconnected blockchains called "shards." Each shard works on its own, allowing TON to process millions of transactions per second.

Fast transactions

TON is built for speed. It uses a system that's faster and uses less energy than older ones like Bitcoin. This means you can use TON for everyday things like buying coffee or sending money to friends.

The many uses of TON

TON’s versatile architecture lets users build a wide range of services and decentralized applications (dapps). As a community-driven project, its ecosystem is constantly expanding with new services. Here are some key uses:

1. Payments and Transfers

TON facilitates quick and secure financial transactions. Its high speed is ideal for peer-to-peer transfers and online purchases, allowing merchants to accept cryptocurrencies seamlessly.

2. Gaming

The gaming sector can use TON’s fast transactions and smart contracts to develop decentralized games and in-game economies, offering new opportunities for developers and players. The network hosts the likes of JetTon Games and Hamster Kombat. 

3. Decentralized Finance (DeFi)

TON’s scalability and security support DeFi applications like lending platforms and decentralized exchanges, handling large volumes of transactions effectively.

4. Content Distribution

TON enables the creation of decentralized content platforms for video streaming and file sharing, ensuring fast and secure content delivery.

5. Social Media and Messaging

With integration into Telegram, TON supports decentralized social media and messaging apps, providing enhanced security and a variety of mini-apps and services.

Conclusion

TON (The Open Network) is a major step forward in blockchain technology, solving problems like slow speeds and limited scalability. Started by Telegram’s founders, TON has grown into a community-driven platform with a smart design and many uses. It aims to make blockchain practical and widely used in everyday life.

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Much like traditional ATMs, Bitcoin ATMs are specialized ATMs that allow users to buy or sell Bitcoin using cash, bank transfers or debit cards. These machines provide a convenient way to exchange traditional currency for cryptocurrency, or vice versa. In this article, we’re doing a deep dive on everything you need to know about using Bitcoin ATMs, including how to find one.  

The benefits of using a Bitcoin ATM

There are a number of reasons one might look to use a Bitcoin ATM instead of an exchange or wallet app. 

• Accessibility & Convenience

Easily buy and sell Bitcoin without complex online processes.
Located in high-traffic areas, easy to access.

• Instant transactions

No waiting for bank transfers or exchange processing.

• No bank account needed

Accessible to unbanked or underbanked individuals.
Provides a reliable option where traditional banking is unavailable.

Security concerns when using a Bitcoin ATM

Bitcoin ATMs offer a quick, accessible way to enter the cryptocurrency market, especially for those seeking more privacy or lacking traditional banking options. However, there are also downsides one should be aware of:

• Fraud and theft risks

ATMs can be targets for criminals. Always be aware of your surroundings and use ATMs in well-lit, public areas. 

• Secure your Bitcoin wallet

Ensure that your Bitcoin wallet is ironclad, using strong passwords with two-factor authentication. Also, ensure that if using an exchange wallet that the platform is reliable and regulated.

• Tips for safe Bitcoin ATM transactions

• Verify all transaction details before confirming
• Don’t share sensitive information with anyone
• Don't accept help from strangers
• Keep your receipt
• Monitor your wallet for discrepancies

By staying alert and following these precautions, you can safely use Bitcoin ATMs while minimizing security risks.

Fees associated with using a Bitcoin ATM

Bitcoin ATM fees typically consist of transaction fees (usually a percentage) and network fees for Bitcoin transfers. These rates can vary significantly between ATMs and operators, so it's best to use online comparison tools to find the best deals. 

To minimize costs, consider using ATMs with lower fees, even if they're less convenient. And note that conducting larger transactions can reduce the impact of flat fees, while alternative methods might be more cost-effective for smaller amounts. 

Keep in mind that Bitcoin ATM fees are generally higher than those on online exchanges, so always check the fee structure before transacting to avoid unexpected costs. 

How to find a Bitcoin ATM near me

Finding a Bitcoin ATM near you is easier than you might think, with various online tools and local resources at your disposal. Whether you prefer using Google, mobile apps, or exploring your local area, there are multiple ways to find a Bitcoin ATM near you.

1. Online directories and maps

• Use websites like Coin ATM Radar or Bitcoin.com ATM Map 

• Enter your location to find nearby ATMs 

• Filter results by buy/sell options and supported cryptocurrencies

2. Mobile apps

• Download apps like Bitcoin ATM Map or CoinATMRadar 

• Enable location services for real-time nearby ATM info 

• Get directions and ATM details on-the-go

3. Local businesses and retail locations

• Check convenience stores, gas stations, and shopping malls 

• Ask cryptocurrency-friendly businesses for recommendations 

• Look for Bitcoin ATM signage in high-traffic areas

Remember to verify the ATM's legitimacy and compare fees before you use one. Not all Bitcoin ATMs are created equal, do your research. 

How to use a Bitcoin ATM for buying/selling crypto

Once you’ve DYOR and found a reliable Bitcoin ATM, using it is straightforward. To buy or sell cryptocurrency, start by selecting your transaction type on the machine's interface. 

You'll typically need to verify your identity by scanning an ID or entering a phone number, depending on the amount you’d like to buy or sell and your local regulations. Next, enter your wallet address or scan its QR code. 

For buying, insert cash and for selling, send Bitcoin to the provided address. Once the transaction is processed, you'll receive a confirmation and receipt. Keep this safe until the Bitcoin has been deposited into your wallet.

As with any crypto transaction, always double-check all details before finalizing your transaction.

An easier alternative: Tap into the future

Why hunt for Bitcoin ATMs when you can have an all in one crypto app in your pocket? The Tap app revolutionizes how you can buy and sell cryptocurrencies. No more searching for ATMs or carrying cash - simply open the app and trade a wide range of digital assets instantly. 

With high-grade security and the freedom to transact anywhere, anytime, Tap offers unparalleled convenience. Enjoy lower fees, a sleek interface, and portfolio management in one secure location (your phone).

Whether you're a crypto novice or a seasoned trader, Tap delivers a seamless experience that traditional ATMs can't match. Ready to upgrade your crypto game? Tap into the future of digital asset trading.

The crypto market has entered a phase that veterans often call the "boring zone." It's a time when:

• Bitcoin's price seems stuck, fluctuating between $50,000 and $70,000 for months.
• Altcoins are in an even deeper slumber, with many down 50-80% from their peaks.
• Trading volumes on major exchanges have plummeted, dropping 30% from the last bull market's heights.

Sound familiar? It should. This lull is a recurring theme in the crypto market cycle, and historically, it's often the calm before the storm. It’s also a common attribute after a recent Bitcoin halving. 

Let's look at what happened after previous Bitcoin halvings:

• 2012 Halving: 92 days until new all-time high
• 2016 Halving: 291 days until new all-time high
• 2020 Halving: 216 days until new all-time high

For perspective, 28 July 2024 marks 100 days from the most recent halving, with 25 February 2025 marking the 300-day mark. 

The power of patient investing

Investing in cryptocurrencies over longer time horizons can be likened to early-stage venture investing, where patience could potentially lead to significant returns. While past performance doesn't guarantee future results, historical examples like Ethereum and Solana demonstrate this potential. 

Ethereum, launching at less than $1 in 2014, and Solana, starting below $1 in 2020, have since seen their values grow to over $3,000 and $140 respectively as of early 2024.

In the crypto space, what’s known as the HODL approach, emphasises the power of time and compound growth, similar to that of traditional asset classes. The idea is straightforward: if you've taken a position in a project you believe has strong fundamentals, maintaining that position through periods of high volatility could potentially lead to significant gains.

To illustrate this point further, in 2010, Bitcoin was worth less than $0.01. By April 2024, it had reached around $70,000. An investor who bought $100 worth of Bitcoin in 2010 and held it until 2024 would have seen their investment grow to millions of dollars.

Strategies for surviving (and thriving) in the "boring zone"

During quiet periods in crypto dive deeper into blockchain fundamentals, research promising projects, instead of anxiously checking prices or reacting to every piece of news, use this time productively.

Alternatively, for those with capital to invest, dollar-cost averaging (DCA) could be something to consider. A Vanguard study found that DCA outperformed lump-sum investing in 68% of cases during market downturns, highlighting its potential effectiveness in notoriously volatile markets.

Know with certainty that this "boring zone" is often temporary. Based on previous cycles, we might see a new Bitcoin all-time high in 30 to 150 days, and once Bitcoin breaks its previous record, top altcoin projects have historically seen gains of 200% to 1,000%.

By staying patient and disciplined during quiet periods, you can be prepared for potential opportunities that may arise as the crypto market evolves. Remember, while historical patterns offer insights, they don't guarantee future results, but these historical patterns are worth considering as you plan your strategy.

We get it, the waiting game is hard

Holding onto your crypto during boring market times can be tougher than you'd think. When prices aren't moving much, it's easy to get antsy or start doubting your choices. But keeping a cool head and being rational is key to long-term success.

First off, remember why you got into crypto in the first place. Was it the tech? The potential? Keep that big picture in mind. It helps to set realistic expectations too - crypto's known for its ups and downs, so flat periods are normal.

Try to limit how often you check prices. Constantly peeking at your portfolio can drive you nuts during slow times. Instead, focus on other parts of your life or dive deeper into learning about blockchain.

Connecting with other crypto fans can help too. Chat about ideas, not just prices. And don't forget to celebrate small wins - even if the market's quiet, projects are still developing and growing.

Stay patient, stay curious, and remember: in crypto, today's boredom could be tomorrow's excitement.

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Chances are you've come across the terms "on-chain" and "off-chain," but what exactly do they mean? Our article dives into the differences between on-chain and off-chain cryptocurrency transactions, helping you grasp these fundamental concepts. Let's delve into their definitions, importance, and critical differences.

Brief explanation of how blockchain technology works

Before we dive in, let's quickly cover the basics of blockchain technology. Blockchain, the underlying technology of cryptocurrencies, operates as a decentralised ledger that records transactions across a network of computers. Each cryptocurrency uses its own blockchain, storing the relevant information pertaining to the transactions that take place on the network.

When a transaction occurs, it's verified by network participants, added to a block, and then added to the chain. This process of data storage ensures transparency, as each transaction is publicly recorded once validated and cannot be altered retroactively. 

Additionally, the decentralised nature of blockchain enhances security by eliminating the need for a central authority to oversee transactions.

For a more detailed explanation, please see our What is Blockchain article. 

Difference between on-chain and off-chain transactions

In a nutshell, on-chain transactions occur directly on the blockchain network, where transaction data is recorded and confirmed by network parties. In contrast, off-chain transactions happen outside the blockchain network, typically facilitated by centralised intermediaries. 

On-chain transactions rely on blockchain technology for verification and record-keeping, ensuring transparency and security. These are conducted through Proof of Work (used by Bitcoin) or Proof of Stake (used by Ethereum) consensus mechanisms, ensuring trustless transactions. While secure, they often face scalability issues. 

Off-chain transactions, on the other hand, involve private databases or alternative payment channels to facilitate transactions faster and with lower fees. These are typically conducted on Layer-2 solutions, a secondary blockchain network that alleviates the strain on the main chain by managing a portion of its functionalities. This is used to increase scalability and efficiency. 

While on-chain transactions are inherently decentralised and immutable, off-chain transactions may offer greater scalability and privacy, albeit with some trade-offs in terms of trust and security.

Transaction speed and fees

When it comes to transaction speeds, it's worth noting that these typically vary between on-chain and off-chain transactions. On-chain transactions, directly processed on the blockchain, can be slower due to network congestion and verification processes. 

In contrast, off-chain transactions, facilitated outside the main blockchain, often offer faster processing times, especially in payment channels or layer 2 solutions. 

However, on-chain transactions typically incur higher fees due to network congestion and the computational resources required for verification. Off-chain transactions, leveraging centralised intermediaries or sidechains, may have lower fees but could compromise decentralisation and security. 

The trade-off between speed and fees depends on the specific use case and desired level of decentralisation a user desires. 

Security considerations to consider

On-chain transactions, being directly processed on the blockchain, benefit from inherent decentralisation and immutability, enhancing security. However, they are susceptible to network attacks and vulnerabilities in smart contracts. 

Off-chain transactions, while offering scalability and speed, often rely on trusted intermediaries, raising concerns about centralization and potential breaches. Despite this, off-chain solutions implement security measures such as encryption and multi-signature authentication to mitigate risks. 

Ultimately, the choice between on-chain and off-chain transactions depends on balancing security considerations with scalability and efficiency requirements in the context of specific use cases.

On-chain and off-chain transactions in terms of cryptocurrency wallets

When it comes to understanding how crypto wallets work for on-chain and off-chain transactions, it's essential to grasp their role in storing and facilitating cryptocurrency transactions. For on-chain transactions, wallets interact directly with the blockchain, securely managing digital assets on the network, while off-chain transactions may require specialised wallets that enable interactions outside the main blockchain, offering features like payment channels or compatibility with layer 2 solutions.

Choosing the right wallet depends on factors like security, compatibility, and functionality for each transaction type.

Conclusion 

In summary, it's crucial to understand the key differences between on-chain and off-chain transactions when engaging with the crypto ecosystem. 

While on-chain transactions offer decentralisation and immutability, these can be slower and costlier. Off-chain transactions, on the other hand, provide speed and scalability but may compromise security. 

Choosing the right method depends on balancing factors like security, cost, and speed. Thus, it's essential to consider these aspects to optimise cryptocurrency transactions and ensure they meet specific needs in the ever-evolving blockchain landscape.