Learning the friendly way

It's 2025 and you've decided to get involved in the crypto industry and find out what the fuss is all about. You've made a smart choice, and we're pleased to welcome you. In this step-by-step guide, we'll be showing you a simple overview of how to complete the following:

• Create an account
• Deposit funds
• Buy Bitcoin, Ethereum or any other cryptocurrency
• Sell a cryptocurrency
• Withdrawal funds

Investing in digital currencies can feel daunting at first, but once you've made your first purchase, transaction, or sale, you'll see that using cryptocurrencies is simpler than expected. Be sure to keep an eye on market prices, as volatility in the crypto industry can go through waves, and educate yourself on the coins that you wish to purchase. Whether you're a trader/investor in the UK, EU, EEA, or USA, everyone can gain access to the crypto markets through the Tap mobile app.

In this article, we're going to show you the ropes, guide you through the process and explain step-by-step how to gain the skills to successfully operate in the crypto space and increase your investment portfolio. No previous trading experience is necessary (stocks or crypto).

Step 1: create an account

The first and most important decision to make before buying cryptocurrencies is determining where to buy them from. With plenty of options available on the market and plenty more news stories about them, it's imperative that you select a trustworthy and reliable source.

The Tap mobile app ticks these boxes and proves so by being licensed and regulated by the Gibraltar Financial Services Commission. The platform has over 300,000 registered users, at the time of writing, operates in 28 countries across the globe, and has been nominated multiple times for PAY360 Awards (previously the Emerging Payments Awards). 

To create an account on Tap, simply follow these steps:

• Download the Tap mobile app from either the Apple or Google Play store.
• Create an account by filling in the relevant information. If you make a mistake, simply go back and alter it before moving to the next step.
• Once the account is set up you will be asked to complete the KYC / identity verification process. Simply follow the onscreen prompts and submit the required information. 
• You will receive an email confirmation once your account is all set up. 

Step 2: deposit funds

In order to buy cryptocurrency through the Tap app, you will need to deposit funds. This can be done in both crypto and fiat currencies, however, we will focus on the fiat deposits today. 

• Select the Cash option in the top horizontal menu.
• Select the fiat currency you would like to deposit, your options are US dollars, Pound Sterling, or Euros. 
• We're selecting GBP, then select one of the options: deposit or debit card top-up. 
• Fill in the relevant information and perform the transaction. 
• Once the funds have cleared they will appear in the relevant Cash wallet. 

Step 3: Buy Bitcoin, Ethereum, or any other cryptocurrency

Now for the exciting part! It's time to buy digital currency. For the sake of this tutorial, we're going to show you how to buy Bitcoin, however, the process is consistent across all cryptocurrencies. 

• In the top horizontal menu, select Cryptocurrencies.
• Choose the cryptocurrency you would like to purchase. 
• Once in the crypto wallet, select the blue Buy button. 
• You'll be given the option to decide how to pay, simply scroll to the bottom and select Pound Sterling (or the crypto or fiat currency that you deposited).
• Enter the amount that you would like to purchase.
• Select the Execute Trade button.
• Once the transaction is completed, the funds will appear in your Bitcoin wallet. 

Step 4: Sell A Cryptocurrency

Now that you're familiar with how to buy crypto, it's high time you learned how to sell. 

• To sell Bitcoin (or any other cryptocurrency), go to the relevant wallet in the Crypto section.
• Select the blue Sell button. 
• From here you can decide whether you'd like to sell the cryptocurrency for another cryptocurrency or for a fiat currency. In this example, we'll sell BTC for GBP. 
• Select the Pound Sterling option and enter the amount of BTC you'd like to sell.
• Proceed with the Execute Trade button.
• The funds will then be available in your Cash GBP wallet.

Step 5: Withdrawal Funds

Completing the final process in this step-by-step guide, we're going to explain how to withdraw funds. You have several options here as the Tap app allows users to withdraw funds directly into their bank account, instantly send funds to other Tap users, or withdraw cryptocurrencies.

• In the top horizontal menu, select Cash.
• Choose the Withdraw button, located underneath your balance. 
• Select the option most preferable to you: Instant, to a Tap user; bank transfer; Crypto withdrawal. 
• Follow the relevant instructions and select Execute Trade once complete. 

Tap into a brighter future with crypto

On top of the simple and easy-to-use app, Tap also offers highly secure wallet solutions that are integrated into your account from the get-go. With Tap, you can securely store and manage a wide range of cryptocurrencies from one convenient location, and even more easily spend them using the Tap card.

Bitcoin 101

Here are several frequently asked questions regarding Bitcoin, the first cryptocurrency to come into existence.

Du har hört historierna.
Någon köpte Bitcoin för några dollar och är nu ekonomiskt oberoende. Kanske var det en vän, ett nyhetsinslag eller den där personen som aldrig slutar prata om krypto. Och nu undrar du: Är det för sent att köpa Bitcoin?

Du är långt ifrån ensam. Folk har ställt exakt samma fråga vid varje ny prisnivå – när Bitcoin kostade 100 dollar, 1 000, 10 000 och till och med 100 000. Vissa hoppade på tåget, andra väntade och trodde att chansen redan hade gått dem förbi.

Men sanningen är: det är svårt att tajma marknaden. Det som känns "för sent" idag kan visa sig vara helt rätt om några år. Eller så är det verkligen för sent. Ingen vet säkert.

Den här guiden går igenom det du behöver känna till. Vi tittar på Bitcoins prisresa, nuläget och argumenten från båda sidor. Målet? Att ge dig en grund att fatta ett eget, informerat beslut.

En titt på Bitcoins prishistoria och marknadscykler

Att förstå var Bitcoin har varit hjälper till att sätta dagens pris i perspektiv. Så, häng med på en tillbakablick.

De tidiga åren (2009–2013)

Bitcoin började som ett experiment. År 2009 hade det inget egentligt pris – folk testade bara en ny digital valuta. Den första dokumenterade transaktionen? Någon köpte två pizzor för 10 000 BTC. Idag skulle de pizzorna vara värda hundratals miljoner kronor.

Vid 2013 hade priset nått omkring 100 dollar. De som köpte då kallades för galna. “Digitalt monopolpengar”, sa många. Men de "galna" såg sin investering öka hundrafalt.

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Source: CoinGecko

Den första stora rusningen (2014–2017)

Nu började Bitcoin verkligen väcka uppmärksamhet. Priset fluktuerade vilt – ner till 200 dollar 2015, för att sedan skjuta i höjden. I slutet av 2017 nådde det nästan 20 000 dollar.

Plötsligt pratade alla om det. Din tandläkare gav kryptotips. Kassören på ICA kollade Bitcoin-priser på mobilen. Klassisk bubbelkänsla.

Kryptovintern (2018–2020)

Sen kom kraschen. Bitcoin föll tillbaka till cirka 3 200 dollar 2018. Många som köpt nära toppen låg rejält back. En del sålde med förlust och lämnade marknaden för gott.

Men perioden lärde många en viktig sak: Bitcoin rör sig i cykler. Stora uppgångar, rejäla nedgångar – och ibland långa perioder av stillhet.

Den institutionella eran (2021–idag)

Runt 2020 hände något. Stora företag började köpa Bitcoin. Tesla lade till det i sin balansräkning. PayPal öppnade för köp. Plötsligt var det inte bara teknikentusiaster som var intresserade.

Bitcoin nådde nya toppar, föll igen, återhämtade sig. Samma mönster – men med en viktig skillnad: stora institutioner var nu med i leken.

Vad händer med Bitcoin 2025?

Bitcoin har klarat flera marknadscykler, överlevt otaliga "dödsdomar" och fortsätter att studsa tillbaka. Men var står vi just nu?

Aktuella marknadskänslor

Marknaden känns annorlunda jämfört med tidigare. Mindre hype, mer eftertänksamhet. Det finns fortfarande de som tror att Bitcoin ska nå en miljon dollar – men också pensionsfonder som långsamt lägger till det i sina portföljer.

Institutionell närvaro

Stora finansaktörer erbjuder nu Bitcoin-tjänster. Det går att köpa Bitcoin-ETFer genom vanliga mäklare. Företag håller Bitcoin som reserv. Något som var otänkbart för bara några år sedan.

Regleringsläget

Myndigheter jobbar fortfarande på hur Bitcoin ska hanteras, men tonen har förändrats. Istället för förbud handlar det nu mer om tydligare regler. Det kan skapa osäkerhet på kort sikt, men ge stabilitet längre fram.

Varför många känner att de missat tåget

Vi måste också prata om psykologin. Det finns flera skäl till att Bitcoin känns skrämmande för nya intressenter.

• Miljonärsberättelserna. Alla artiklar nämner någon som blev rik snabbt. Det är sant – men ovanligt. Lite som att vinna på lotto.
• Rubrikerna. “Bitcoin rasar 50 %!” får fler klick än “Bitcoin svänger som vanligt”. Mediebilden blir snedvriden.
• Höga priser. När en Bitcoin kostar tiotusentals kronor känns det ouppnåeligt. Men många vet inte att man kan köpa delar av en Bitcoin.

Argumenten för att det INTE är för sent

Begränsat utbud, ökad efterfrågan

Det kommer aldrig finnas mer än 21 miljoner Bitcoin. Samtidigt växer intresset år för år. Enligt enkel ekonomi kan det pressa priset uppåt.

Digitalt guld på uppgång

Många ser Bitcoin som “digitalt guld” – en värdebevarare för den digitala tidsåldern. Om den rollen blir verklighet, finns det utrymme för tillväxt.

Global adoption är i sin linda

De flesta i världen äger fortfarande inte Bitcoin. Om spridningen fortsätter, särskilt i länder med instabila valutor, kan efterfrågan öka kraftigt.

Bättre infrastruktur

Det har blivit enklare att köpa, förvara och använda Bitcoin. Teknisk utveckling leder ofta till bredare användning.

Argumenten för att det KAN vara för sent

Volatiliteten är kvar

Priset svänger fortfarande kraftigt. En nedgång på 20 % på en dag är inte ovanlig, vilket kan vara svårt att hantera.

Osäker reglering

Även om ett totalförbud verkar osannolikt, kan hårda regler sätta käppar i hjulen för tillväxten.

Miljöfrågor

Bitcoin kräver mycket energi. Klimatdebatten kan påverka intresset, särskilt bland institutioner.

Konkurrens

Bitcoin var först – men långt ifrån ensam. Nyare tekniker kan ta över vissa användningsområden.

Vanliga strategier för att närma sig Bitcoin

Månadsvis köp

Vissa köper en liten summa regelbundet, t.ex. 500 kr i månaden. Det jämnar ut priset över tid.

“Kaffepengsstrategin”

Istället för att köpa en kaffe ute varje dag, lägg undan den summan i Bitcoin. Det är pengar du inte direkt saknar.

Tidsramar

De som ser Bitcoin som en långsiktig investering (5+ år) oroar sig ofta mindre för dagliga svängningar.

Rimlig exponering

En vanlig tumregel: investera aldrig mer än du har råd att förlora. För de flesta bör det vara en liten del av portföljen.

Vad säger experterna?

Traditionella rådgivare

Vissa föreslår en liten andel Bitcoin i portföljen, som skydd mot inflation. Andra är mer skeptiska på grund av prisvolatiliteten.

Kryptospecialister

Analytiker inom krypto spår ofta högre priser på lång sikt, baserat på utbud och efterfrågan – men är också tydliga med att det kommer svänga mycket på vägen dit.

Historiska mönster

Tekniker som förändrat världen – internet, smartphones – har ofta vuxit i vågor: först en boom, sen en dipp, sedan stabil tillväxt.

Alternativ till att köpa Bitcoin direkt

Om du är osäker, finns det andra sätt att få exponering.

• Bitcoin-ETF: Går att köpa genom din mäklare, utan att hålla krypto själv.
• Bitcoin-gruvbolag: Vissa företag är specialiserade på mining. Deras aktier påverkas ofta av Bitcoinpriset.
• Blockchain-investeringar: Fokusera på företag som bygger infrastrukturen bakom kryptovärlden.

Vanliga misstag att undvika

• Att investera pengar du inte har råd att förlora
• Att försöka pricka “perfekta” tillfället att köpa
• Att falla för löften om snabba pengar
• Att slarva med säkerheten vid direktköp
• Att låta känslorna styra besluten

Hur man köper Bitcoin säkert (om du bestämmer dig)

Om du bestämmer dig för att köpa Bitcoin via Tap, gör så här:

1. Ladda ner appen
2. Skapa ett konto och slutför verifieringen
3. Öppna din personliga Bitcoin-plånbok i appen
4. Ange hur mycket du vill köpa
5. Bekräfta köpet – dina Bitcoin läggs till i din plånbok

(För en steg-för-steg-guide, se mer här.)

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(Psst: här hittar du en mer detaljerad guide)

Slutsats: Vad är rätt beslut för dig?

Så, är det för sent att köpa Bitcoin?

Bitcoin har överlevt flera nedgångar och kommit tillbaka varje gång. Tekniken väcker fortfarande stort intresse, även bland etablerade aktörer.

Men det är också en mycket volatil tillgång, och ingen vet vad framtiden bär med sig. Ditt beslut bör baseras på din egen ekonomiska situation, din risktolerans och dina mål.

Du behöver inte bestämma dig idag. Läs på, följ marknaden och vänta tills du känner dig trygg. Det viktigaste är att beslutet känns rätt för dig – inte att du följer andras stress eller hype.

One of the first stablecoins to come into existence, Dai was launched in 2017 and is maintained and regulated by MakerDAO. Using a series of smart contracts, Dai maintains a value of $1, or very close to it. Due to the coin’s soft peg to the US dollar, the Dai stablecoin not only provides a stable long-term store of value but also a strong medium of exchange. 

Let’s explore what Dai is and how it contributes to the crypto ecosystem. 

What Are Dai tokens?

Dai is an ERC-20-based stablecoin pegged to the US dollar. While more stablecoins hold the fiat currency to which they are pegged in reserves, the Dai stablecoin instead uses several cryptocurrencies to ensure it holds its peg. 

Supported cryptocurrencies include Ethereum (ETH), (BAT), USD Coin (USDC), Wrapped Bitcoin (wBTC), Compound (COMP), and many more. With a wide range of collateralized cryptocurrencies, user risk is decreased and Dai's price stability is increased.

Dai is issued and operated by the Maker Protocol and the MakerDAO (decentralized autonomous organization). Designed to provide a means of lending and borrowing crypto assets, the Dai stablecoin was at the forefront of the DeFi revolution. 

Holders of Dai can also earn interest. The platform also has another coin, MKR, which allows holders to set the Dai Savings Rate (DSR) and act as guarantors for Dai. This ensures that MKR tokens can be liquidated if the system fails. This structure motivates guarantors to ensure that the Dai system and its collateralized coins operate properly.

How do you generate Dai?

Users can generate Dai by paying collateral assets. Dai is created when users deposit ETH or any supported cryptocurrency as collateral. The equivalent amount of Dai is then issued and the user will receive Dai tokens.

If the Dai holders want the collateral assets back, the borrowed Dai can be paid back (plus a stability fee) and the collateral assets will be released. This Dai is then removed from circulation.

History of the Dai Stablecoin

The MakerDAO was first launched in 2015 by Rune Christensen and is the longest-running protocol on the Ethereum blockchain to date. It holds more than 2.3 million ETH in its protocol, approximately 2% of Ethereum’s total supply.

When first created, only Ether could be used as collateral, however, in 2019 more cryptocurrencies were added to this list. The Dai price has always been soft pegged to the US dollar.

How Does DAI Work?

The Dai cryptocurrency is an ERC-20 token that can be bought on both centralized and decentralized exchanges (DEXs). Users can also generate and borrow Dai by using MakerDAO's Oasis Borrow dashboard to establish a Maker collateral vault and put Ethereum-based assets in as collateral.

In its original use, the Maker protocol stored collateral in smart contracts known as maker collateral vaults. These smart contracts held collateral in escrow until the borrowed Dai was repaid, also known as collateralized debt positions (CDPs). The value of the security you send always exceeds the amount of DAI you receive otherwise the collateral will be liquidated. 

The Dai platform is one of the most integrated digital assets in the blockchain industry and can be utilized across decentralized finance (DeFi) applications and blockchain-based games, among other places.

The Advantages of DAI

No Minimum Amount Required

There is no minimum account balance required to use DAI, as there is with most other types of money. A lot of people around the world do not have the minimal amount of assets needed in order to qualify for a bank account, but there is no minimum balance requirement for utilizing DAI.

Price Stability

DAI can serve as a safe alternative store of money and access to financial inclusion for people who live in places where the economy is unstable.

Decentralized Financial Inclusion (smart contracts)

As DAI is a transparent and permissionless system, it allows users to have greater freedom over their money. Zimbabwe and Myanmar, for example, have been recognized as countries where people are limited in their ability to access fiat currency due to daily or monthly withdrawal restrictions on bank accounts imposed by the government.

Passive Income

Users can use DAI tokens to earn money through lockup and interest generation through the DAI Savings Rate system. Because DAI is based on the Ethereum blockchain, it doesn't have its own staking mechanism.

Owners of DAI tokens, on the other hand, may profit by putting DAI into a MakerDAO smart contract. This unique smart contract system protects the user's money and allows for immediate withdrawal.

Quick And Cost-Effective Transactions

In many cases, international wire transfer fees can be extremely high, and the time it takes to complete a transaction might be inconvenient. Global transactions between two users' wallets are made more transparent and efficient due to DAI's low transfer fees and quick processing times.

Operates 24/7

Traditional financial institutions operate only during "business" hours. As a result, transactions through such organizations may be delayed for days and will only finalize after banking institutions are open and transfers have been completed. Transactions can now be completed at any time of the year and on any day of the week using DAI and the Ethereum blockchain.

Continuously Vetted

The MakerDAO system has been found to conduct thorough checks and studies in order to guarantee the platform's security. Developers formally validate all smart contracts and core protocol elements that make up the system's internal architecture through mathematical analysis. Always DYOR (Do Your Own Research) and fully understand any DeFi protocol before using it.

The way money moves is changing fast: digital currencies have evolved from investment assets to practical tools for daily transactions. With big names like Microsoft, AT&T, and Starbucks now accepting crypto payments, mainstream acceptance is officially on the rise.

Why businesses are making the switch

Financial efficiency

Traditional payment systems often have drawbacks: high fees, processing delays, and complicated international transfers. Cryptocurrency helps solve these issues by offering:

• Near-instant settlement times
• Minimal transaction fees, especially for cross-border payments
• No currency conversion costs
• Reduced operational overhead

Enhanced security architecture

The underlying blockchain technology provides businesses with unprecedented security benefits:

• Immutable transaction records
• Distributed verification systems
• Protection against unauthorised reversals
• Reduced risk of payment fraud

Market expansion opportunities

By accepting cryptocurrency, businesses can:

• Tap into the growing crypto-native consumer base
• Reach underbanked populations globally
• Operate in international markets without traditional banking constraints
• Appeal to privacy-conscious customers

Implementation guide: accepting crypto payments

Step 1: Choose your integration method

• Direct wallet-to-wallet transfers
• Payment processor integration
• Hybrid solutions with automatic conversion to fiat

Step 2: Set up your infrastructure

• Create business cryptocurrency wallets
• Implement QR code generation systems
• Establish transaction verification protocols
• Train staff on handling crypto payments

Step 3: Customer experience design

• Clear payment instructions at checkout
• Multiple cryptocurrency options
• Transparent fee structure
• Real-time exchange rate display

With Tap’s Business Accounts we will assign a dedicated account manager to you who will run you through each of these steps making the transition incredibly smooth. 

Strategic advantages

Risk management

• Protection against chargebacks
• Reduced exposure to payment fraud
• Built-in transaction verification
• Immutable payment records

Operational benefits

• Automated payment processing
• Reduced administrative overhead
• Simplified international transactions
• Real-time settlement

Financial planning

• Potential tax advantages (varies by jurisdiction)
• Inflation hedge through crypto assets
• Reduced payment processing costs
• New revenue stream opportunities

Customer transaction process

1. Selection: Customer chooses cryptocurrency payment option
2. Verification: System generates unique payment address or QR code
3. Transfer: Customer initiates payment from their digital wallet
4. Confirmation: Transaction is verified on the blockchain
5. Completion: Payment is settled and order is processed

Future-proofing your business

The adoption of cryptocurrency payments isn't just about staying current - it's about preparing for a future where digital currencies play an increasingly important role in global commerce. Businesses that integrate these payment systems now gain:

• First-mover advantage in their market
• Experience with blockchain technology
• Enhanced appeal to tech-savvy customers
• Operational flexibility for future expansion

Privacy and transparency balance

One of cryptocurrency's unique features is its ability to provide both privacy and transparency simultaneously:

• Transactions are publicly recorded but pseudonymous
• Customer personal data isn't required for processing
• Audit trails are automatically maintained
• Regulatory compliance is simplified through built-in tracking

Looking ahead

The crypto revolution isn't just changing how we think about money – it's transforming how businesses operate. Forward-thinking companies integrating digital currencies are doing more than just adding another payment option; they're positioning themselves at the cutting edge of a new financial era.

Think of cryptocurrency adoption like the early days of e-commerce. What seemed optional in the late '90s quickly became essential for survival. We're seeing similar patterns with digital currencies, where early adopters are gaining valuable experience and competitive advantages while others play catch-up.

The real power of crypto payments extends far beyond transactions. They're unlocking new business models, breaking down international barriers, and offering unprecedented financial flexibility. For businesses eyeing global expansion or looking to reduce transaction costs, crypto isn't just an alternative – it's becoming a strategic imperative.

The decision to accept cryptocurrency payments should be based on your business's specific needs and goals. But let's be practical: timing matters. Your business's unique circumstances – market position, customer base, technical capabilities – should guide your implementation strategy. While the question of adoption is shifting from "if" to "when," rushing in without proper preparation could do more harm than good.

Smart implementation means integrating crypto alongside your existing payment infrastructure. Think of it as expanding your payment ecosystem rather than replacing it. Your customers should have choices, whether they're crypto enthusiasts or prefer traditional payment methods to ensure maximum customer accessibility and business flexibility.

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Welcome to Tap’s weekly crypto market recap. 

Here are the biggest stories from last week (9 - 16 June).

🚀Tap Global Group PLC to be listed on the AIM LSE

Tap Global Group is making the jump from the AQSE Growth Market to the AIM Market of the London Stock Exchange on 27th June. The move will open the doors to more investors and better trading liquidity, especially after a strong year with record revenue and their first full-year profit. 

No new shares are being issued, just a shift to a bigger stage!

Read more. 

📊 Macro markets & asset convergence, first time in 10 years

Stocks, gold, and Bitcoin are all climbing nearly in tandem - a rare occurance driven by dollar weakness (~9% drop YTD), global inflation concerns, and shifting investor sentiment toward alternative assets. 

Galaxy Digital’s Novogratz noted this trend highlights a maturing crypto ecosystem and increasing institutional integration 

Read more. 

🏛 U.S. crypto regulation momentum

Congress is advancing key crypto legislation: the CLARITY market-structure bill has passed two House committees, while the GENIUS stablecoin bill moves closer to a Senate vote. A new CFTC chair may also boost regulatory engagement.

This legislative progress dovetails with Circle’s IPO, marking a turning point toward crypto-friendly policies.

Read more.

🚀 Pomp launching Bitcoin SPAC

Anthony Pompliano, a well-known crypto advocate and podcast host, is expected to become CEO of ProCapBTC, a new venture aiming to raise $750 million to purchase Bitcoin. 

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The initiative involves a merger with Columbus Circle Capital 1, a special-purpose acquisition company (SPAC) backed by investment bank Cohen & Company. The funding goal includes $500 million in equity and $250 million in convertible debt. 

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This move is part of a wider trend of crypto-related entities tapping into public markets amid growing optimism fueled by pro-crypto U.S. policy shifts under President Trump’s second term. If finalized, the plan would align with strategies used by firms like Michael Saylor’s MicroStrategy and Japan’s Metaplanet.

Read more.

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Stay tuned for next week’s instalment, delivered on Monday mornings. 

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Livepeer is a decentralised video streaming network that aims to make video content more accessible and affordable for everyone. Launched in 2017, it was the first fully decentralised live video streaming network protocol, offering an alternative to traditional centralised streaming services like YouTube and Twitch.

The platform works by connecting video creators who need their content processed with computer operators who provide the computing power. This peer-to-peer approach can reduce streaming costs by up to 50-90% compared to traditional cloud providers while maintaining high quality and reliability.

TLDR

Decentralised video infrastructure: Livepeer is a decentralised network for limitless video computing, enabling AI processing and transcoding jobs to power the future of video.

Cost-effective streaming: Designed to make streaming more reliable while reducing costs, Livepeer acts as a decentralised marketplace for developers building applications that integrate live video and transcoding providers.

Ethereum-based protocol: Built on Ethereum, it aims to provide a blockchain-based alternative to centralised streaming services, giving developers freedom to innovate and creators independence from big platforms.

Native token (LPT): The Livepeer Token (LPT) is the protocol token of the Livepeer network, used for staking and network governance rather than direct payments.

What is Livepeer (LPT)?

Livepeer creates a global network where anyone can contribute computing power to help process video content. When someone wants to stream a video, instead of using expensive centralised servers, the content gets distributed across this network of independent computers.

The magic happens through video transcoding: the process of converting video files into different formats and quality levels so they can be watched on different devices and internet speeds. Traditional streaming services handle this with massive, expensive data centres. Livepeer does it through thousands of smaller computers around the world.

This approach benefits everyone involved. Content creators get cheaper streaming costs, computer operators earn money for contributing their resources, and viewers get the same high-quality experience they expect from streaming platforms.

The network is particularly valuable for developers building video applications, as they can tap into Livepeer's infrastructure without setting up their own expensive video processing systems.

Who created Livepeer?

Livepeer was founded in 2017 by Doug Petkanics and Eric Tang, both entrepreneurial software engineers who had been long-time collaborators before starting the project.

Doug Petkanics serves as CEO and brings over 10 years of experience as an entrepreneur and software developer. Before Livepeer, he was a co-founder and VP of Engineering at Wildcard and attended the University of Pennsylvania.

Eric Tang, who serves as CTO, co-founded Livepeer to utilise blockchain technology to reduce costs and increase efficiency in video streaming. The platform has grown significantly under their leadership, now featuring more than 70,000 GPUs that encode videos for large platforms.

The founding team recognised that video streaming was becoming increasingly expensive and centralised, with a few big companies controlling most of the infrastructure. They set out to democratise video streaming by creating a decentralised alternative that could compete on both cost and performance.

How does Livepeer work?

Video transcoding network

The core of Livepeer is its video transcoding network. When someone uploads a video, it needs to be converted into multiple formats and quality levels (like 1080p, 720p, 480p) so it can be watched on different devices and internet connections.

Instead of using one large data centre, Livepeer distributes this work across thousands of computers worldwide. These computers, called "orchestrators," compete to provide the best service at the lowest cost.

Staking and network security

Computer operators who want to join the network must stake LPT tokens as a form of security deposit. This ensures they'll do good work; if they provide poor service or try to cheat, they can lose their staked tokens.

Users can also "delegate" their LPT tokens to trusted orchestrators, earning a share of the rewards while helping secure the network without running their own hardware.

Economic incentives

The network creates a marketplace where video processing jobs go to the orchestrators offering the best combination of price, quality, and reliability. This competition naturally drives down costs while maintaining high standards.

Payments for video processing are typically made in ETH or other cryptocurrencies, while LPT tokens are used for staking and governance rather than direct transactions.

What Is LPT?

LPT is a staking token in the Livepeer Network that helps reduce costs for video broadcasters. Unlike many crypto tokens, LPT isn't primarily used for payments, it also provides:

• Network security: Orchestrators must stake LPT tokens to participate in the network, ensuring they provide reliable service.
• Governance rights: LPT holders can vote on important network decisions and protocol upgrades.
• Delegation rewards: Token holders can delegate their LPT to orchestrators and earn a portion of the fees those orchestrators collect.
• Work token: LPT represents the right to perform work on the network and earn fees from video processing jobs.

The token follows an inflationary model where new LPT is created to reward network participants, but this inflation is balanced by the value created through network usage and growth.

How can I buy and sell LPT?

If you're interested in exploring LPT, you can do so easily through the Tap app. The app supports buying, selling, trading, and storing LPT tokens, allowing verified users to manage LPT alongside other digital assets.

When considering LPT investment, it's important to understand that the token's value is closely tied to the network's adoption and usage. As more developers and content creators use Livepeer's infrastructure, the demand for LPT staking and the overall network value should increase accordingly.

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