Learning the friendly way

In the colorful and often chaotic world of crypto, there exists a quirky corner dominated by what are affectionately known as “memecoins." These digital assets, born from the memes and trends that dominate online culture, are the playful jesters of the crypto kingdom. Despite their playful charm, memecoins are often caught up in pump-and-dump schemes and other scams, making them quite the rollercoaster ride. Their volatility is high, and the risk is real.

What draws people to these digital jokes? Simple, some memecoins have handed out enormous returns to those daring enough to dive in. However, while memecoins may gain popularity via social media, endorsements or fan communities, they often lack intrinsic utility. That makes them vulnerable to scams because of a low barrier to creation, hype-driven valuations, and little oversight. In many cases, the money made by early buyers or insiders comes directly from later retail investors in a negative-sum game. Because of this speculative nature, these tokens can attract opportunistic actors aiming to profit quickly at the expense of others.

So, with a whole galaxy of memecoins out there, how do you spot the stars from the scams? Stick around for some handy tips.

What Makes Memecoins Popular? 

Memecoins, like the iconic Dogecoin or Shiba Inu, often start as jokes, are often associated with entertainment rather than usability, and often gain traction thanks to the power of community, social media, and, occasionally, celebrity endorsements.

Unlike more traditional cryptocurrencies such as Bitcoin or Ethereum, memecoins generally lack complex technology or specific use cases. They're not about solving grand technological challenges but rather are about capturing the spirit of the internet in a tokenised form. This means that their value is often driven by pure enthusiasm, online buzz, and the thrill of being part of a viral movement.
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So why are these coins so popular? The appeal of memecoins lies in their accessibility and the sense of belonging they create. They're fun, easy to understand, and often tied to shared cultural experiences that resonate with a broad audience. The sense of community and the potential possibility of rapid gains draw people in, making some memecoins a fascinating aspect of the crypto landscape.

‍The Downside to Memecoin’s Popularity

Lately, memecoins have been the talk of the town, sparking a wave of enthusiasm, and unfortunately, a spike in scams too. Navigating the crypto market's more playful corner requires a keen eye. Before you leap into a memecoin, take a good look at the project and the brains behind it, as well as its development plan and the project’s overall transparency.

It's wise to tread carefully in these waters and resist the urge to jump in just because a memecoin is all the rage.

Common Types of Memecoin Scams

Scammers have refined their playbook to exploit FOMO, trust in influencers, and the general chaos of low-cap tokens. Some scams are obvious in hindsight, but many are sophisticated enough to fool even experienced traders. The key is knowing what to look for before you do anything. Whether it's a coordinated pump-and-dump or a malicious smart contract designed to trap your funds, these schemes all share common patterns. Let's break down the major scam types you're most likely to encounter, and the red flags that should make you think twice.

• Rug Pulls
  Scammers launch a token, build hype, attract liquidity, then withdraw the funds (pull the rug) leaving the token worthless.
• Pump-and-Dump Schemes
  Coordinated groups inflate a token's price (often with influencer shilling), then dump it at a high. Late investors are left holding the bag.
• Celebrity Scams
  Scammers exploit trust by faking endorsements or hijacking social media accounts of well-known figures.
• Fake Partnerships & Endorsements
  Polished websites, vague whitepapers and purported brand deals are used to convey legitimacy, despite little substance.
• Technical Exploits
  Memecoins may embed malicious smart-contract code, honeypots or unlimited minting rights for the devs, enabling extraction of funds.
• Insider Trading & Market Manipulation
  Whales, early wallets and wash-trading inflate token value while retail buyers enter too late. Scam clusters often reuse contracts and patterns.

How to Spot a Memecoin from a Scam

• Beyond jokes and buzz
  The initial charm of a memecoin may come from its humour, but lasting appeal requires more substance. Look for memecoins that offer real utility and a role within a broader ecosystem, these are signs of a coin that could stick around.
• Transparency is key
  Steer clear of memecoins shrouded in mystery, where details about the team and their updates are scarce. A trustworthy memecoin project is open about its progress and the people behind it.
• Security measures
  Given that memecoins often attract the attention of hackers, robust security is a must. A credible memecoin will have undergone thorough security audits and checks. If a coin lacks evidence of strong security measures, it's a red flag.
• Community strength
  A vibrant and active community is crucial for a memecoin's success. Memecoins that are driven by their communities tend to have a more promising future, thriving on the collective support and engagement of their members.

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As memecoins continue to capture the imagination of the online world, they've also caught the eye of regulators. The wild, unregulated environment in which these coins thrive poses challenges for authorities trying to protect consumers from potential scams or market manipulation. Despite this, the decentralised nature of most memecoins makes regulation a complex issue, leaving this corner of the crypto world as something of a digital Wild West.

Who’s at Risk of Memecoin Scams?

Memecoins tend to pull in younger investors who are drawn by viral marketing, FOMO, and the thrill of high-risk bets. For many, it's less about fundamentals and more about the rush, the community, or simply being part of the next big thing. Investors with limited experience, shaky financial planning, or an appetite for risk seem to be especially susceptible. When you combine that with fast-moving markets and social media hype, it's easy to see why so many get caught up in the chaos.

Conclusion

Memecoins are the whimsical, unpredictable, and culturally significant players in the cryptocurrency arena. They bring together the lightheartedness of internet memes with the fast-paced world of digital assets, creating a unique blend of humour and speculation. Whether you're laughing with them or at them, memecoins have undeniably become a fascinating part of the crypto narrative.

However, the very traits that make memecoins so appealing (i.e. their viral nature and community-driven buzz) also make them a hotspot for speculative bubbles and financial mishaps. As they continue to captivate the imagination of the online masses, they also pose significant challenges and risks, often operating in the murky waters of regulatory oversight. This unregulated and often wild market dynamic invites both opportunistic gains and blatant scammers.

For enthusiasts and investors alike, navigating this landscape means staying informed, vigilant, and discerning. Understanding the signs of a genuine memecoin versus a scam is crucial. It's not just about the initial buzz or the humour; it's about the underlying value, security measures, transparency, and community engagement that support the token's longevity and potential growth.

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Cryptocurrencies have gained a reputation for being largely volatile investments. While stocks too can have their moments (what with Peloton stocks dropping 20% every other day) the crypto market carries the brunt of it. 

Thankfully, stablecoins have come to the rescue. While still functioning as digital currencies powered by blockchain technology, stablecoins are pegged to external assets such as fiat currencies or gold, thereby eradicating (most of) their volatility. 

A Short History Of Stablecoins

After the advent of Bitcoin in 2009, it was only a few years later that a stable digital asset entered the market. Stablecoins came into existence in 2014 when a Hong-Kong based company named Tether Limited released a coin of the same name. The Tether coins' value was pegged to the US dollar, meaning that 1 USDT would always be worth $1. 

In order to guarantee this value, the company held the dollar equivalent in bank accounts. Skip past the controversy surrounding their reserves and lack of financial analysis, and there are now plenty of other stablecoin options on the market. 

Seeing the infinite benefits of digital currency transactions and blockchain technology, like speed, transparency and low fees, many companies around the world have created their own version of the stablecoin, mostly improving on the previous release. These coins have proven to be invaluable with businesses and retail merchants around the world.

Today, the two biggest stablecoins on the market are Tether (USDT) and USD Coin (USDC). One can argue whether these are "safe haven" assets, but one cannot deny that these tokens hold most of the advantages that digital currencies hold while considerably diminishing the unpredictable market swings. 

In our attempt to better understand the concept, let's take a look at the two biggest stablecoins.

Tether (USDT) vs USD Coin (USDC)

Below we explore the two multi-billion-dollar market cap stablecoins, while they both provide the same service in terms of a digital currency, the companies behind them operate quite differently.

What Is Tether (USDT)?

As mentioned above, Tether is the first stablecoin to enter the market. Launched in 2014, the network was initially built on the Ethereum blockchain but is now compatible with a number of other networks. 

Note that the Ethereum-based USDT cannot be traded as a TRON-based token, coins need to stick to their respective blockchain networks as this is how the transactions are processed. 

It wasn't long before USDT was listed on the top exchanges, and included in dozens of trading pairs. 

Tether Limited have since released a Euro-based stablecoin as well as Tether crypto coin pegged to the price of gold. The downside to Tether falls on the company's reputation surrounding transparency and reserve funds. 

There have been several court cases where individuals and regulatory bodies have called for transparency surrounding the funds held in reserves. Tether has since provided access to this information but is yet to go through a third party audit. Regardless, Tether holds the third biggest market cap (at the time of writing).

What Is USDC (USD Coin)?

USD Coin is a stablecoin created by the Centre Consortium, an organisation made up of crypto trading platform Coinbase and Circle, a peer to peer payment platform. It launched in 2018 as an ERC-20 token and has since climbed the ranks to be in the top 5 biggest cryptocurrencies based on market cap. USD Coin is available on the Ethereum blockchain, as well as Solana, Polygon, Algorand and Binance Smart Chain networks. 

The significant bonus that USDC holds over its biggest competitor, USDT, is that the coin is regularly audited by a third-party institution. These audits are made public, allowing any user to verify the authenticity of their USDC value each month. Since launching USDC, Coinbase has removed USDT from its platform.

USDT vs USDC: Head-to-Head Comparison

Adoption

With over a decade in circulation, USDT has achieved far greater adoption worldwide. It remains the dominant stablecoin in trading pairs and global liquidity, particularly in emerging markets. Winner: USDT

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Transparency

Tether has historically struggled with transparency, though it now publishes quarterly attestations. By contrast, USDC provides monthly reports with independent verification, giving it the edge for investors who value oversight and regulatory clarity. Winner: USDC

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Regulatory Compliance

Circle and Coinbase designed USDC with U.S. and international regulations in mind. USDC reserves are kept in regulated banks and Treasuries, and Circle is registered as a money transmitter in multiple jurisdictions. Tether claims compliance but lacks comparable transparency. Winner: USDC

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Price Stability

Both USDT and USDC are pegged 1:1 to the U.S. dollar. While they occasionally experience small deviations, both have shown resilience and quickly return to their peg. Winner: Tie

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Redemption Process

Redeeming USDT directly requires a minimum of 100,000 USDT plus fees, which makes it impractical for small investors. USDC allows redemptions starting at just $100, giving it an accessibility advantage. Winner: USDC

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Incidents

Both stablecoins have faced brief de-pegging events. USDT dipped below $0.95 during market stress in 2022, while USDC fell to around $0.87 during the Silicon Valley Bank crisis. In both cases, prices stabilized quickly. Winner: Tie

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Longevity

Tether has been around since 2014, giving it a proven track record and first-mover advantage. Winner: USDT

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Which Stablecoin Should You Choose?

Due to the fact that these respective companies are holding the dollar-equivalent value in reserves, these two digital currencies are considered to be centralized, while the rest of the cryptocurrency market holds a decentralized nature. As the demand for digital currencies increases, it is likely that these two stablecoins will only continue to grow.

When looking for a stablecoin, these are two most recognised options. Choosing between USDT and USDC depends on what you value most as an investor or user.

• If you need deep liquidity, global adoption, and access across more blockchains, USDT remains the go-to option. Its size and reach are unmatched, making it the default stablecoin for many traders.
  
  
• If you prioritize regulatory compliance, transparency, and a lower barrier for redemptions, USDC is the safer bet. It continues to build trust among institutions and investors who want accountability.
  
  

Ultimately, both stablecoins play vital roles in today’s crypto ecosystem. Some traders even use a combination of USDT and USDC to balance adoption with transparency, hedging against risks specific to either coin.

Users can both buy and sell USDT and USDC directly through the Tap app. Simply create your account, complete the KYC process and deposit funds into your digital wallet. Manage your entire crypto (and fiat) portfolio from one convenient, secure location.

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Tap (XTP) är en banbrytande fintech-plattform lanserad 2019, som förändrar hur vi hanterar pengar genom att kombinera traditionell bank med kryptovalutor. Plattformen möjliggör omedelbara, avgiftsfria överföringar inom sitt nätverk, vilket gör det enklare att dela kostnader och skicka pengar – samtidigt som användarna belönas. Målet? Att demokratisera finans och ge alla tillgång till smarta, säkra och kraftfulla ekonomiska verktyg.

Vad är Tap (XTP)?

Att hantera flera appar, valutor och överföringar kan vara krångligt. Tap (XTP) är en helhetslösning som bygger en bro mellan klassisk ekonomi och kryptovalutor – allt i en och samma app.

Sedan lanseringen 2019 har Tap haft som mål att förenkla ekonomi för alla. Appen gör det möjligt att skicka och ta emot pengar eller krypto avgiftsfritt inom nätverket Tap2Tap, betala räkningar, samt köpa, sälja och växla ett brett utbud av kryptovalutor.

Med Tap kan du enkelt konvertera fiat till krypto – eller ta ut dina tillgångar med låga avgifter. Slipp valutaväxlingspåslag och onödiga appar när du är utomlands.

Nyckeln till det hela är Tap’s egna kryptovaluta, XTP-token, en ERC-20-token som ger tillgång till exklusiva funktioner som upp till 8 % cashback, belöningar och premiumförmåner i hela Tap-ekosystemet. Du kan också använda Tap Mastercard – fysiskt eller virtuellt – och handla med krypto var du än befinner dig i världen.

Tap i praktiken – hur fungerar det?

Tap är en allt-i-ett-plattform som samlar traditionell ekonomi och kryptohantering på ett ställe. Huvudgränssnittet är mobilappen – enkel, säker och byggd för att göra finans tillgängligt.

För att börja använda Tap krävs en verifieringsprocess enligt KYC- och AML-regler. När kontot är godkänt kan användare köpa, sälja och lagra upp till 50 olika kryptovalutor.

Plattformen accepterar flera betalningsmetoder, inklusive banköverföring och kortbetalning. Användare kan också överföra krypto från externa plånböcker till Tap, eller växla sina innehav till fiat och skicka direkt till sina bankkonton.

Med Tap Mastercard kan du dessutom förladda ditt kort direkt från din Tap-plånbok, ta ut kontanter i bankomater över hela världen och få cashback – upp till 8 % beroende på ditt medlemsnivå. Kortet erbjuder även konkurrenskraftiga växlingskurser.

Vad gör Tap unikt?

Slipp växla mellan appar. Tap kombinerar krypto och traditionell ekonomi i en och samma plattform. Växla digitala tillgångar till fiat direkt och använd dem i vardagen – eller bygg en kryptoportfölj med ett stort urval av tillgångar.

Det som verkligen särskiljer Tap är dess on-ramp och off-ramp-funktion. Växla mellan fiat och krypto – direkt, snabbt och utan krångel. Tap passar både nybörjare och erfarna användare som vill ha kontroll över sin ekonomi, oavsett om det gäller spenderande eller investering.

Vad ingår i Tap-ekosystemet?

Tap är mer än bara en app – det är ett komplett ekosystem för din ekonomi.

Flervaluta-plånbok

Säker och krypterad digital plånbok som stödjer över 50 olika kryptovalutor samt fiat. Lätt att hantera, växla och använda både för vardag och investering.

Kryptobörs

Tap erbjuder ett brett utbud av kryptovalutor att handla med – utan begränsningar i handelspar. Appen prioriterar snabbhet, flexibilitet och användarvänlighet.

Tap Mastercard

Tap’s förbetalda Mastercard låter dig handla globalt, både fysiskt och online. Finns som både fysisk och virtuell version.

Cashback

Alla som använder Tap-kortet får cashback. Genom att uppgradera din plan kan du tjäna upp till 8 % tillbaka på varje köp.

Tap2Tap-överföringar

Skicka pengar och krypto gratis till andra Tap-användare, direkt i appen – var du än är i världen.

Stöd för fiatvalutor

Tap stöder flera nationella valutor, så att du kan hantera både fiat och krypto smidigt i samma plattform.

Investerings- och handelsverktyg

Få tillgång till smarta funktioner som realtidsdata, prisnotiser, marknadsrapporter och nyhetsbrev – allt samlat på ett ställe.

Smart Trading Router

Tap’s egna router skannar flera börser och likviditetsleverantörer i realtid för att hitta bästa möjliga pris på din transaktion.

Vad är XTP-token?

XTP är den inhemska kryptovalutan i Tap-ekosystemet – och nyckeln till att låsa upp premiumfunktioner.

Du kan använda XTP för att:

• Få rabatt på handelsavgifter
• Låsa upp premiumplaner och funktioner
• Tjäna upp till 8 % cashback
• Sänka växlingsavgifter
• Öka kortets spendergränser
• Få tillgång till exklusivt innehåll som marknadsbrev och prioriterad support

XTP-token finns i flera handelspar och kan växlas mot ett flertal kryptovalutor direkt i appen, vilket gör det enkelt att diversifiera din portfölj.

Dessutom kan XTP skickas avgiftsfritt mellan Tap-konton – en snabb och kostnadseffektiv metod för internationella överföringar.

Alla XTP-innehav lagras säkert i appens integrerade plånbok, så att du kan fokusera på att växa din portfölj utan att oroa dig för säkerheten.

What Are Fiat On-Ramps and Off-Ramps?

For many users, one of the biggest challenges in the crypto space is figuring out how to move between traditional money and digital currencies safely and easily. That’s where fiat on-ramps and off-ramps come in. These essential gateways allow users to convert their local currency (like US dollars, GB pounds, or euros) into crypto and back again, helping bridge two financial worlds.

In this guide, we’ll break down what each type of ramp means, how they work, and why they’re critical for expanding real-world crypto adoption.

What Is a Fiat On-Ramp?

A fiat on-ramp is a service that lets users buy cryptocurrencies using traditional fiat currencies such as USD, EUR, or GBP. In other words, it’s the entry point into the world of crypto. Exchanges, brokerage platforms, and payment services act as intermediaries, processing financial transactions and converting fiat money into assets like Bitcoin, Ethereum, or stablecoins.

Common examples include centralized exchanges or fintech apps that integrate blockchain functionality. On-ramps are regulated financial services that typically require Know Your Customer (KYC) verification to comply with laws on anti-money laundering and consumer protection.

When choosing a fiat on-ramp, users should evaluate fees, supported currencies, and security standards to ensure a smooth and safe experience.

The Advantages and Disadvantages of Fiat On-Ramps

Fiat on-ramps make entering the crypto market much easier, particularly for beginners. They simplify the process of buying digital assets without requiring technical expertise.

They also open the door to a diverse set of cryptocurrencies, letting users explore different projects and blockchain networks. Some on-ramps even offer instant payment methods through debit or credit cards, wire transfers, or mobile apps like Google Pay, enabling fast transactions and greater convenience.

From a business perspective, on-ramps support financial inclusion by connecting traditional banking systems to blockchain-based platforms, driving mainstream adoption and innovation across the fintech industry.

While fiat on-ramps are convenient, they also come with a few challenges. Users must comply with verification and regulatory requirements, which can take time. Another potential issue is exposure to fraudulent or unlicensed platforms, which can compromise data or funds. To minimize these risks, users should choose on-ramps that offer transparent pricing and operate in full compliance with financial regulations, like Tap.

In addition, on-ramps might charge higher transaction or processing fees, especially for card purchases or smaller amounts. To keep fees low and help users get the best crypto deals without platform hopping, Tap uses a top-of-the-line smart router.

What Is a Fiat Off-Ramp?

A fiat off-ramp performs the opposite function: it lets users sell cryptocurrency and receive fiat money in their bank account. Off-ramps provide liquidity and help people turn crypto assets into spendable cash.

Off-ramps operate through centralized exchanges, peer-to-peer platforms, or crypto debit cards that automatically convert digital assets into fiat currency at the point of sale. This process makes cryptocurrencies more practical for daily use, enabling real-world purchases, payments, and withdrawals.

How Fiat Off-Ramps Work

The off-ramping process generally involves a few simple steps:

1. Transfer crypto from your wallet to an exchange or service that supports fiat withdrawals.
2. Sell or convert your chosen cryptocurrency into your preferred fiat currency.
3. Withdraw funds to your linked bank account or payment method (for example, a debit card).

Processing times vary by provider and banking network, usually ranging from a few minutes to a few business days. Many platforms require identity verification to meet anti-fraud and regulatory standards. Key factors influencing the experience include withdrawal limits, transaction fees, and the fiat currencies supported.

The Advantages and Disadvantages of Fiat Off-Ramps

The main advantage of off-ramping is, of course, liquidity: the ability to convert digital currencies into usable cash when needed. Whether users want to pay bills, make everyday purchases, or take profits from crypto investments, off-ramping makes that possible.

It also provides flexibility in managing risk. When markets are volatile, selling crypto for fiat can help stabilize personal finances. Additionally, off-ramping plays a role in promoting transparency and regulatory compliance by ensuring that transactions are traceable and aligned with local laws.

Off-ramping faces similar challenges to on-ramping, including variable fees, conversion delays, and regulatory hurdles. Some banks restrict transactions related to cryptocurrency exchanges, causing delays or rejections. Others may require additional verification steps for large transfers.

Users should check whether a platform offers low-cost conversions, and has clear customer support channels. As always, verifying a provider’s regulatory compliance and reputation helps avoid potential issues.

The Connection Between Fiat On-Ramps and Off-Ramps

Together, fiat on-ramps and off-ramps form the foundation of the crypto-fiat ecosystem. They create a two-way bridge that connects digital currencies to the traditional financial system, improving liquidity, usability, and accessibility.

Seamless on-ramping attracts new users by making it easy to enter the market, while efficient off-ramping gives confidence that assets can be converted back to fiat when needed. This balance is what enables broader adoption of cryptocurrencies across businesses, consumers, and financial services.

Platforms like Tap exemplify this connection by offering both on-ramp and off-ramp capabilities through secure infrastructure, compliance with financial regulations, and support for multiple digital assets. Users can buy, sell, and transfer between crypto and fiat currencies using a single account, without needing multiple intermediaries.

Security and Best Practices

Security should always come first when using any financial platform. Here are a few best practices:

• Verify regulation. Check whether the platform follows financial authority standards and offers transparent reporting.
• Use two-factor authentication. This adds an extra layer of protection to your account.
• Confirm wallet and withdrawal addresses. Mistyped addresses are one of the most common causes of lost funds.
• Start with small transactions. Test the service before transferring large amounts.
• Keep records. Store transaction data securely for personal reference or tax reporting.

Following these measures helps maintain data integrity and protects against common cyber risks in digital finance.

Common Challenges and How to Overcome Them

Here are a few recurring challenges users may face:

• Banking restrictions on crypto-related transactions.
  
  
• High conversion fees that can reduce profit margins.
  
  
• Processing delays during peak trading hours.
  
  
• Strict verification procedures that slow onboarding.
  
  

The best way to overcome these obstacles is to work with reputable, user-friendly well-established providers that maintain transparent communication and have strong partnerships with trusted financial institutions, such as Tap.

In Conclusion

Now that we've explored what a fiat on-ramp and off-ramp are, it becomes clear how essential it is for cryptocurrency users and investors to understand these processes as they provide liquidity, investment opportunities, and the ability to realize profits (in fiat currency).

Looking ahead, the future of fiat on-ramps and off-ramps appears promising. As the cryptocurrency landscape continues to evolve, we can anticipate exciting advancements in these gateways, making crypto assets more accessible and further driving their adoption into mainstream use.

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Tether är en av de fem största kryptovalutorna i världen och den mest populära stablecoinen på marknaden. Med ett av de högsta dagliga handelsvolymerna är Tether en självklar del av kryptolandskapet. Låt oss ta en närmare titt på denna digitala valuta och vad som gör Tether så central i ekosystemet.

Sedan den digitala ekonomin tog fart har användningen av internetbaserade pengar vuxit enormt — samtidigt som farhågorna också gjort det. Traditionella investerare är ofta skeptiska till volatiliteten på kryptomarknaden, men för många runt om i världen har kryptovalutor öppnat upp tillgång till finansiella tjänster som tidigare krävde långa bankprocesser.

Digitala valutor som Tether kan dessutom bidra med både transparens och säkerhet, vilket direkt bemöter några av de problem som traditionella valutor brottas med. Även om vissa kritiker fortfarande betraktar kryptovalutor som riskabla, är det tydligt att denna nya generation av betalningslösningar har tillfört något nytt och användbart till ett annars åldrat system.

Vad är Tether (USDT)?

Tether (USDT) är en kryptovaluta som är kopplad till den amerikanska dollarn — det som kallas en stablecoin. Stablecoins är digitala valutor som är bundna till ett fiatvärde, oftast på en 1:1-nivå.

Tether var faktiskt världens första stablecoin när den lanserades 2014 under namnet Realcoin. Initialt fungerade den via Omni Layer på Bitcoin-blockkedjan, men har sedan dess blivit kompatibel med flera andra blockkedjor, däribland Ethereum, TRON, EOS, Algorand, Solana och OMG Network.

För att hålla värdet stabilt är det avgörande att utbudet av Tether alltid motsvaras av tillgångar som hålls i reserv. Dessa reserver kan bestå av exempelvis kommersiella värdepapper, insättningar, kontanter, återköpsavtal och statsobligationer.

Det har förekommit spekulationer kring exakt hur dessa reserver är sammansatta, men detta har inte hindrat Tether från att fortsätta vara en av de mest använda stablecoins på marknaden.

Grundidén med Tether är enkel: att erbjuda en digital tillgång med stabilt marknadsvärde, så att användarna kan dra nytta av blockkedjans teknik och fördelar utan den prisvolatilitet som är vanlig hos många andra kryptovalutor. Om du vill fördjupa dig ännu mer, kan du alltid besöka Tethers officiella sida.

Vad är värdet på Tether?

Till skillnad från andra kryptovalutor, vars värde bestäms av tillgång och efterfrågan, är stablecoins som Tether alltid kopplade till en fiatvaluta eller råvara. För Tethers del innebär det att 1 USDT alltid motsvarar värdet av 1 amerikansk dollar.

Trots att värdet hålls stabilt har Tether vuxit till att bli en av de mest handlade kryptovalutorna i världen — något som tydligt visar på efterfrågan efter stabilitet i en annars volatil marknad.

Vem skapade Tether?

Som nämnts ovan lanserades Tether under namnet Realcoin år 2014 av Bitcoin-investeraren Brock Pierce, entreprenören Reeve Collins, och mjukvaruutvecklaren Craig Sellars. Kort därefter bytte projektet namn till USTether, och senare till det vi känner till idag som USDT.

De tre grundarna är alla välkända profiler inom kryptobranschen och har varit inblandade i flera andra projekt inom blockchain och digitala valutor.

Utöver USDT har teamet även tagit fram andra stablecoins, som exempelvis EURT (kopplad till euron), CNHT (kopplad till den kinesiska yuanen), och XAUT (kopplad till guld). Dessa hjälper till att hantera prisvolatilitet på flera olika marknader.

Hur fungerar Tether?

Tether har inte någon egen blockkedja utan fungerar som en så kallad second-layer token ovanpå redan etablerade blockkedjor som Bitcoin, Ethereum, EOS, Tron, Algorand, Bitcoin Cash och OMG.

USDT fungerar som andra kryptovalutor och lagras i plånböcker som är specifika för den blockkedja den är byggd på. Det är viktigt att tänka på att du inte kan skicka en USDT-token som är baserad på Ethereum till en plånbok som är skapad för Tron — det måste alltid ske inom samma blockkedja, annars riskerar du att förlora dina tokens.

Utbudet av Tether måste alltid vara uppbackat av motsvarande mängd tillgångar i reservkonton. Dessa reserver kan inkludera kontanter, likvida tillgångar, eller andra finansiella tillgångar.

Genom att erbjuda en stabil digital valuta i en annars volatil marknad, gör Tether det möjligt att genomföra USD-transaktioner globalt utan att oroa sig för snabba prisförändringar. Tether används också ofta som ett tryggt alternativ när marknaderna skakar till, och fungerar därmed som ett slags skyddsnät.

Vad är USDT?

USDT är Tethers stablecoin, knutet till den amerikanska dollarn i förhållandet 1:1. Under varumärket Tether är det idag världens mest använda stablecoin.

Även om det teoretiskt sett finns ett obegränsat antal USDT, låg cirkulerande mängd vid skrivande stund runt 72,5 miljarder tokens.

USDT fungerar som en trygg tillflykt för användare som vill undvika prisfall i kryptomarknaden, och erbjuder en stabil lösning utan att behöva sälja sina digitala tillgångar till traditionella valutor.

Hur köper man USDT?

Vill du lägga till Tether (USDT) i din kryptoplånbok? Det gör du enkelt genom Tap-appen. Efter en snabb verifiering får du tillgång till en rad kryptomarknader och kan lagra dina digitala tillgångar i våra integrerade kryptoplånböcker.

Med Tap-appen kan du dessutom hantera både din kryptoportfölj och fiat, när du är på språng. Du kan även använda ditt Tap-förbetalda kort för betalningar hos över 40 miljoner butiker världen över.

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What is Return on Investment?

Return on investment is one of the most common measures of profitability and performance in both business and personal finance. It shows how much gain or loss you’ve made on an investment compared to its original cost.

In simple terms, ROI tells you whether your money has worked for you or not. Whether you’re investing in stocks, property, a business project, or a marketing campaign, ROI helps you compare how efficiently different investments use your capital. It’s widely used by companies to evaluate new projects, advertising performance, or expansion opportunities, and by individuals to assess savings, portfolios, or real estate ventures.

A clear ROI provides insight into the effectiveness of a decision and guides future strategies, whether the goal is increasing profit, cutting costs, or improving financial performance.

All investments, including stocks, bonds, real estate, and small businesses, come with the goal of making more money than you put in. The money you earn over and above your initial investment is called profit. As you’ll learn later, profit and ROI aren’t the same thing. When discussing investment profitability, however, people often use ROI. This metric expresses the amount of net profit one earned as a percentage of what the initial investment was.

ROI can help you assess if buying property or investing in a business is worth it. It also helps companies determine the value of adding new products, building more facilities, acquiring other businesses, advertising campaigns, etc.

In other terms, it's a way to compare different investments in order to figure out which ones are worth pursuing. For example, you could calculate ROI to decide whether selling one stock and buying another would be a good idea.

While there is no limit to a return on investment theoretically, in practice, no investment is guaranteed to have any return. If your ROI is negative, it means you not only failed to make a profit but also lost some of your original investment. The worst possible outcome would be -100% ROI, meaning you completely lost your initial investment. An ROI of 0% signifies that you at least recovered the money you put in, but gained nothing beyond that.

While ROI is often used as a marker of profitability, it isn't foolproof. There are several limitations to calculating ROI as your only measure which include the time frame in which you will earn back your investment, inflation rates, how risky a venture is, and additional maintenance costs that may be incurred.

ROI Terminology

Before we dive in, let's first cover some basic terminology.

Net profit or net income

Net profit is the amount of money left over after all operating costs, such as the cost of transaction costs or maintenance costs, and other expenses have been accounted for and subtracted from the total revenue. It is used to measure profitability. Net profit can also be called net income, net earnings, or the bottom line.

Total cost of investment

This figure will look at the amount of money invested in a particular investment.

How to Calculate ROI: The ROI Formula

The ROI formula is a simple equation that looks at the price change of the asset and the net profits (the initial cost of the investment minus its value when you sell it). When calculating ROI you would use this formula:

ROI = (Net Profit / Total Cost of Investment) x 100

To factor trading costs into your ROI figure, you'll use: 

ROI = ((Value of Investment - Cost of Investment – Associated Costs) / Cost of Investment) x 100

As an example, let's say you buy 5 shares of $100 each in Tesla, equating to $500. You sell them a year later for $150 each, equating to $750. Let's say you paid $5 commission on each trade, costing you $25 in trading fees. 

ROI = (($750 - $500 - $25) / $500) x 100 = 45%

This means that you made a 45% return on investment on that particular investment.

What is a Strong ROI

A "good" return on investment is any number above 0, as this means you made some profit. However, the ideal ROI should be higher than what you could've earned had you chosen another investment (the next best thing). 

To compare this, investors often compare their earnings to what they could've made on the broader stock market or in a high-yield savings account. Using the S&P 500 as a control, over the past four decades it has made gains of around 7% (after inflation). An ROI is generally considered to be a strong one if it beats the stock market in the long term. 

However, risk and return are directly linked. High ROIs often come with higher volatility or uncertainty. Property, stocks, and startups may yield better returns but can also result in losses. Safer investments, like savings accounts or government bonds, tend to offer lower but more predictable ROIs. Moreover, it's always important to note that past performance does not equate to future results. 

Therefore, a strong ROI will vary depending on the investment's level of risk, your goals, and how much risk you're willing to take.

ROI vs Profits

ROI and profit are related but not identical. Profit is the absolute amount of money gained after costs, while ROI expresses that profit as a percentage of the original investment.

For instance, a $1,000 profit might sound good, but if it came from a $100,000 investment, the ROI is just 1%. That’s why ROI is a more useful metric for comparing opportunities or assessing performance across projects.

Use ROI for decision-making and benchmarking; use profit for understanding absolute earnings.

Benefits of Using ROI

Return on investment (ROI) is widely valued for its clarity and practicality. It allows both individuals and businesses to assess whether their financial choices are creating real value, providing a clear, quantitative foundation for better decision-making. It remains one of the simplest and most effective tools for:

• Comparing investments as it standardises performance across asset types.
• Guiding decisions, where it is used to prioritise projects or marketing strategies.
• Measuring performance by tracking financial efficiency over time.
• Allocating resources by showing where capital yields the best results.

Its simplicity and flexibility make it an essential concept in finance, marketing, and project management alike.

Where the ROI Formula Falls Short

The main limitation of using this return on investment ROI formula as a marker of success is that it doesn't show how long it took to earn the money back. When comparing various investments, the time it takes to mature will have a significant impact on the profits you could earn.

For instance, a year loan versus a bond held for five years versus a property held for 10 years will all have varying ROIs once you've established how long it will take to earn the specified ROIs. 

In this scenario, the ROI calculations mentioned above skimp on the full story. It also doesn't account for risk. For instance, the loan repayments could be delayed or the property market might be in a slump, all affecting the potential profits earnable.

With many variables, it becomes harder to predict what the exact ROI calculation on an investment will be, so be sure to factor this in when using the return on investment ROI formula to determine how attractive an investment opportunity or business venture is. 

ROI Alternatives

Although the return on investment doesn't consider how long you keep an asset, it's essential to compare the ROI of investments held for comparable lengths of time as a more clear performance measure. If that's not possible, there are a few other options.

Average Annual Return

Also known as annualized return on investment, this adjusts the ROI formula to factor in the timing. Here you would divide the ROI by the number of years you hold the asset.

Compound Annual Growth Rate (CAGR)

This option is more complicated but yields more accurate results as it factors in compound interest generated over time. 

Internal Rate of Return (IRR)

This measure factors in the notion that profits earned earlier outway the same profits earned later, taking into account interest that could've been earned and factors like inflation. This equation is quite complicated but there are online calculators one can use. 

Conclusion

A return on investment (ROI) is a formula used to calculate the net profit or loss of an investment in percentage form. The ROI calculation can present valuable information when investing capital or determining profitability ratios. The ROI equation looks at the initial value of one investment and determines the financial return. A negative ROI indicates that the investment returns were lower than the investment cost.

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