Learning the friendly way

Bitcoin options trading has been making waves as a small yet significant catalyst in Bitcoin’s latest price surge. The launch of Bitcoin options linked to BlackRock’s iShares Bitcoin Trust ETF brought new energy to the market, attracting attention from both big institutions and everyday investors. 

But this bull run isn’t just about options trading, it’s driven by growing confidence in Bitcoin’s future, boosted by market trends, technological progress, and changes in regulations. Let’s take a closer look at what Bitcoin options trading is and how it fits into this exciting rally.

What are Bitcoin options?

Options trading is a type of financial trading where you buy or sell the right, but not the obligation, to purchase or sell an asset, like Bitcoin, at a specific price within a set time frame. Essentially, you’re betting on whether the price of that asset will go up or down.

There are two types of options: calls and puts. A call option lets you buy the asset at a certain price (if you think the price will rise), while a put option lets you sell it at a certain price (if you think the price will drop). Instead of buying the asset outright, you’re paying a smaller fee, called a premium, for the option to trade later.

Traders typically use options to hedge risk or profit from price movements without directly owning the asset. In the case of Bitcoin, options trading allows investors to manage volatility while taking advantage of its price swings, making it a popular tool in the fast-moving crypto market.

The game-changer: Bitcoin ETF options

January 2024 marked a historic moment when the SEC approved spot Bitcoin ETFs, and now we're seeing the next evolution with Bitcoin ETF options. BlackRock's iShares Bitcoin Trust ETF (IBIT) made waves when its options began trading on the Nasdaq, quickly becoming one of the most exciting new financial products on the market.

The numbers tell the story: In just the first hour of trading, IBIT saw 73,000 options contracts traded, instantly placing it among the top 20 most active non-index options. 

Why Bitcoin ETF options matter

The introduction of Bitcoin ETF options is significant for several reasons:

1. Accessibility: Anyone can now trade Bitcoin options through traditional brokerage accounts, no crypto exchange is required.
2. Regulated environment: These products trade on established exchanges like Nasdaq, offering a level of oversight that many crypto platforms can't match.
3. Market sophistication: The availability of ETF options helps mature the Bitcoin market, potentially leading to more stable prices over time.

The new Bitcoin ETF options landscape

The Bitcoin ETF options market is growing fast, with big names like BlackRock's iShares Bitcoin Trust (IBIT), Grayscale Bitcoin Trust (GBTC), Fidelity Wise Origin Bitcoin Fund (FBTC), and ARK 21Shares Bitcoin ETF (ARKB) leading the way. These funds are already offering or planning to offer options trading, giving investors more choices than ever before.

As the market develops, experts expect to see even more innovative products, including covered call funds, buffer funds, trend-following strategies, and other option-based investment tools. This rapid growth is certainly making the crypto space more dynamic and accessible for more “traditional” investors.

Final thoughts

The launch of Bitcoin ETF options is a big step forward for the crypto market as it continues to grow and evolve. While these options bring exciting opportunities they also come with their own risks and complexities, so whether you’re curious or serious about trading, it’s important to fully understand how they work before diving in.

Before Bitcoin was launched in 2009, Satoshi Nakamoto designed the cryptocurrency to have a maximum supply of 21 million coins. As part of the greater plan, the number of new Bitcoin that enter circulation decreases at regular intervals, thus maintaining the total supply. These intervals are known as halvings, and affect everything from market value to investing strategies to potential profitability. Let's get into it.

What is the Bitcoin halving?

Roughly every 4 years, or every 210,000 blocks that are mined, the network undergoes a halving where the block reward for miners is reduced by 50%. This reward is earned by verifying transactions and adding a new block to the blockchain. 

The halvings process decreases the rate at which new Bitcoins enter circulation, gradually depleting the remaining supply until the final satoshi is mined, expected to be around 2140. After that, miners will solely rely on transaction fees as an incentive to validate blocks.

The most recent Bitcoin network halving took place in April 2024, when the mining reward was reduced from 6.25 BTC to 3.125 BTC.

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Why does the halving occur?

The Bitcoin halving is pre-programmed into Bitcoin's core code and is not something that can be changed - it's set in stone. Designed to control and slow down the release of new Bitcoins over time results in fewer and fewer Bitcoin being minted after each halving event. 

This limited supply is a key part of what gives the digital currency its deflationary nature and potential for increasing value. As the supply is capped at 21 million, the dwindling new supply hitting the market reinforces Bitcoin's artificial scarcity.

Previous Bitcoin halvings

Below we look at previous halvings and how these affected the price of Bitcoin. Historically, 12 - 18 months after halvings, Bitcoin has reached a record high. While this is not the rule of thumb, it has certainly been witnessed. 

2009 - Bitcoin launches

Date: 3 January 2009

Block reward: 50 BTC

2012 - Bitcoin’s first halving

Date: 28 November 2012

Block: 210,000

Block reward: 25 BTC

Price before halving (November 2012): Around $12

Next all-time high after halving: $1,156 (November 2013)

2016 - Bitcoin’s second halving

Date: 9 July 2016

Block: 420,000

Block reward: 12.5 BTC

Price before halving (July 2016): Around $650

Next all-time high after halving: $19,891 (December 2017)

2020 - Bitcoin’s third halving

Date: 11 May 2020

Block: 630,000

Block reward: 6.25 BTC

Price before halving (May 2020): Around $8,800

Next all-time high after halving: $69,000 (November 2021)

2024 - Bitcoin’s fourth halving

Date: 19 April 2024

Block: 840,000

Block reward: 3.125 BTC

Price before halving (April 2024): Around $65,000

At the time of writing, next all-time high after halving: $99,655.50 (November 2024) 

Taking a look at the future dates, the next halving is expected to take place in 2028, when the block reward will be reduced to 1.5625 BTC. Thereafter, in 2032 and 2036. This will continue until all Bitcoins have been mined, which is expected to be in 2140. 

Potential impacts of the recent halving

The next Bitcoin halving event is expected to have several potential impacts on the cryptocurrency. First and foremost, it will reduce the supply of new Bitcoins entering circulation by 50%, substantially decreasing its inflation rate. This scheduled supply rate reduction enhances Bitcoin's hardcoded scarcity which could lead to increased demand if investors view reduced supply as more desirable. Higher demand coupled with tightened supply could potentially drive up Bitcoin's price.

However, the halving will also cut block rewards for miners by 50%, which could force some smaller mining operations to shut down if their expenses outweigh newly reduced revenues. This may result in mining becoming less decentralised as larger entities with greater economies of scale are able to continue operating profitably. This could lead to further consolidation of the mining hashrate among a smaller number of big players.

Regardless of price movement, the most recent halving holds significance for Bitcoin's disinflationary issuance schedule, which will continue until the final Bitcoin is mined around 2140. This systematically shrinking supply reinforces Bitcoin's key value proposition as a deflationary asset, with absolute scarcity built into its design. Understanding this info highlights why some investors see Bitcoin's scarcity as a central role in its potential long-term value.

How will the rest of the crypto market be impacted?

We can confirm that Bitcoin's halving creates a ripple effect across the entire cryptocurrency market. While it directly impacts Bitcoin, it can also cause broader market shifts affecting many altcoins as investors start adjusting their portfolios during this time, which can lead to increased volatility and capital moving between digital assets. 

Established cryptocurrencies like Ethereum often respond to Bitcoin's market changes, though their reactions aren’t always predictable. Smaller, less-known coins may face even greater uncertainty. Because crypto markets are so interconnected, even indirect effects from the halving can create big waves, making it a key event that influences the entire ecosystem.

Should I invest during a Bitcoin halving?

Sure, navigating Bitcoin halving speculation can feel like walking through a maze. Investors often debate the best timing - before, during, or after the event - but there's really no universal playbook. 

The cryptocurrency market moves in mysterious ways, influenced by countless global factors, and past halvings have shown dramatically different market behaviors, making predictions challenging. While some see these events as potential opportunities, others view them with caution. 

The key is understanding that no single strategy guarantees success. Individual research, a clear view of personal risk tolerance, and a broad understanding of market dynamics are essential for anyone considering involvement in this volatile landscape.

The bottom line

The Bitcoin halving is a highly significant event worth learning about as it enforces the cryptocurrency's hardcoded disinflationary monetary policy. While past halvings have led to powerful bull markets and substantial price appreciation, as illustrated above, it's important to understand that future price movements remain unpredictable and cannot be relied on. 

Bitcoin's value is influenced by a complex array of factors beyond just supply dynamics, including adoption rates, regulatory developments, and overall market sentiment. Though artificially constrained supply can increase scarcity, demand is ultimately the driving force behind long-term valuations. 

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Hey there, Community! ✨

We've got some exciting news to share, and it's all about making your life a little bit easier and a whole lot clearer. We're thrilled to announce our partnership with TapiX – and before you wonder what this is all about, let me break it down into plain English, just for you.

No More Guessing Games 🎲

Ever looked at your transaction history and thought, "Where on earth did I spend that money?" We've all been there, scratching our heads, trying to decipher cryptic names or puzzling out just which coffee shop that was.

Here's where TapiX comes in – and why we're so excited about it. TapiX turns those confusing codes and names into information you can actually understand. We're talking real names of stores, complete with local language and all the details to make it click instantly. Yes, that means no more guessing games!

A Picture Speaks a Thousand Words 📷

But why stop at names? When you look at your transactions, you can now see actual logos and images – making it even easier to spot at a glance where you've been shopping. It's like turning your transaction history into a colourful gallery of your spending habits.
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Pinpoint Shopping Locations📍

Ever got a charge from a store and wondered, "When did I go there?”. Now, you won't just see the name; you'll get the exact location. We're talking street address, city, even zip codes – perfect for those "Aha!" moments.
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Extra Details at Your Fingertips 🫰

And there's more. Want to revisit a store but can't remember the name? You can now access additional details like website links, opening hours, and more for the store and companies that support it. It's like having a little assistant tucked away in your transaction history.

Why This Matters to You 👀

We believe managing your money should be as straightforward as shopping. That's why we partnered with TapiX – to transform your transaction list from a boring spreadsheet into a clear, understandable, and even helpful part of your daily life.

Here's what it boils down to: less time puzzling out your past spends and more time enjoying your present. Whether you're a budgeting pro or just trying to keep track of where your money's going, we think you'll love this new feature.

It's All About You 💙
At Tap, everything we do is aimed at giving you a better experience. We listen, we care, and we act on what you need. This partnership? It's all about making your financial life clearer and simpler.

We're here to help you make sense of your spending, save time, and maybe even discover some new favourite spots along the way. And this is just the beginning – we're always looking for ways to improve your experience.

So go ahead, take a look at your updated transaction history, and see the difference for yourself.

Here's to clearer, simpler, and more enjoyable finances.

Warmly,

The Tap Team.

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The financial world is undergoing a significant transformation, largely driven by Millennials and Gen Z. These digital-native generations are embracing cryptocurrencies at an unprecedented rate, challenging traditional financial systems and catalysing a shift toward new forms of digital finance, redefining how we perceive and interact with money.

This movement is not just a fleeting trend but a fundamental change that is redefining how we perceive and interact with money.

Digital Natives Leading the Way

Growing up in the digital age, Millennials (born 1981-1996) and Gen Z (born 1997-2012) are inherently comfortable with technology. This familiarity extends to their financial behaviours, with a noticeable inclination toward adopting innovative solutions like cryptocurrencies and blockchain technology.

According to the Grayscale Investments and Harris Poll Report which studied Americans, 44% agree that “crypto and blockchain technology are the future of finance.” Looking more closely at the demographics, Millenials and Gen Z’s expressed the highest levels of enthusiasm, underscoring the pivotal role younger generations play in driving cryptocurrency adoption.

Desire for Financial Empowerment and Inclusion

Economic challenges such as the 2008 financial crisis and the impacts of the COVID-19 pandemic have shaped these generations' perspectives on traditional finance. There's a growing scepticism toward conventional financial institutions and a desire for greater control over personal finances.

The Grayscale-Harris Poll found that 23% of those surveyed believe that cryptocurrencies are a long-term investment, up from 19% the previous year. The report also found that 41% of participants are currently paying more attention to Bitcoin and other crypto assets because of geopolitical tensions, inflation, and a weakening US dollar (up from  34%). 

This sentiment fuels engagement with cryptocurrencies as viable investment assets and tools for financial empowerment.

Influence on Market Dynamics

The collective financial influence of Millennials and Gen Z is significant. Their active participation in cryptocurrency markets contributes to increased liquidity and shapes market trends. Social media platforms like Reddit, Twitter, and TikTok have become pivotal in disseminating information and investment strategies among these generations.

The rise of cryptocurrencies like Dogecoin and Shiba Inu demonstrates how younger investors leverage online communities to impact financial markets². This phenomenon shows their ability to mobilise and drive market movements, challenging traditional investment paradigms.

Embracing Innovation and Technological Advancement

Cryptocurrencies represent more than just investment opportunities; they embody technological innovation that resonates with Millennials and Gen Z. Blockchain technology and digital assets are areas where these generations are not only users but also contributors.

A 2021 survey by Pew Research Center indicated that 31% of Americans aged 18-29 have invested in, traded, or used cryptocurrency, compared to just 8% of those aged 50-64. This significant disparity highlights the generational embrace of digital assets and the technologies underpinning them.

Impact on Traditional Financial Institutions

The shift toward cryptocurrencies is prompting traditional financial institutions to adapt. Banks, investment firms, and payment platforms are increasingly integrating crypto services to meet the evolving demands of younger clients.

Companies like PayPal and Square have expanded their cryptocurrency offerings, allowing users to buy, hold, and sell cryptocurrencies directly from their platforms. These developments signify the financial industry's recognition of the growing importance of cryptocurrencies.

Challenges and Considerations

While enthusiasm is high, challenges such as regulatory uncertainties, security concerns, and market volatility remain. However, Millennials and Gen Z appear willing to navigate these risks, drawn by the potential rewards and alignment with their values of innovation and financial autonomy.

In summary

Millennials and Gen Z are redefining the financial landscape, with their embrace of cryptocurrencies serving as a catalyst for broader change. This isn't just about alternative investments; it's a shift in how younger generations view financial systems and their place within them. Their drive for autonomy, transparency, and technological integration is pushing traditional institutions to innovate rapidly.

This generational influence extends beyond personal finance, potentially reshaping global economic structures. For industry players, from established banks to fintech startups, adapting to these changing preferences isn't just advantageous—it's essential for long-term viability.

As cryptocurrencies and blockchain technology mature, we're likely to see further transformations in how society interacts with money. Those who can navigate this evolving landscape, balancing innovation with stability, will be well-positioned for the future of finance. It's a complex shift, but one that offers exciting possibilities for a more inclusive and technologically advanced financial ecosystem. The financial world is changing, and it's the young guns who are calling the shots.

In this article, we're covering what transaction fees are, and taking a look at which cryptocurrencies offer the lowest transaction fees.

While long-term traders are unlikely to get affected by transaction fees, short-term traders and people actively using cryptocurrencies are often plagued with excessive fee structures.

This complaint has led to layer 2 solutions, where transactions can most quickly and cost-effectively be executed, as well as new blockchain platforms entirely (as was the case when developers migrated away from Ethereum due to high transaction costs).

What are transaction fees?

Transaction fees are fees paid to the miner of the network to execute the transaction. While some networks differ in how they operate, transaction fees are consistent across the board. Looking at Bitcoin as an example, when a user sends BTC the transaction is entered into a pool of pending transactions known as a mempool. 

The miner will then pick up a batch of transactions and validate them, checking to see whether the original wallet does in fact have the funds to send and if the wallet addresses are valid. Once the transaction is executed, the data relevant to the transaction is added to a block, which is added to the blockchain chronologically. 

As compensation to the miner for their time and electricity, they earn a small crypto transaction fee from each transaction as well as a reward for adding the block, known as a miner's reward. This process also ensures the safety and integrity of the network.

When the networks are very busy, the cost of sending a transaction is increased. Users can then choose to add in a higher crypto transaction fee in order to prioritise their transaction in the mempool. 

Transaction fees for smart contracts are based on how much electricity will be needed to complete the task. Typically, transaction fees on smart contracts are much higher.

Generally, the terms transaction fee and network fee can be used interchangeably. They both refer to the transaction fee necessary by the network for the transaction to get processed.

Exchange fees refer to something else entirely. Exchange fees are fees charged by the exchange in order to conduct the service. Be sure to check before conducting a transaction on an exchange as you might be required to pay a transaction fee (or network fees) as well as exchange fees.

How to pay less for transaction fees

A transaction fee is imperative to your transaction getting executed so it cannot be avoided entirely, however, there are ways to reduce the amount you need to pay.

Transaction fees increase when the network is busy, so sending your transaction while the network is quieter is a great way to reduce the transaction fee. Typically the busier periods are during business hours in the United States. 

Look out for the Lightning Network for Bitcoin and layer-2 scaling solutions for Ethereum as these will provide a cost-effective solution to high transaction costs on those networks.

Which cryptocurrency has the lowest average transaction fee?

Let's take a look at some of the most popular cryptocurrencies and the average transaction fee associated with their platforms. 

XRP - $0.0002 per transaction

Developed by Ripple Labs, XRP is optimised for fast, affordable cross-border payments, with a focus on serving financial institutions and remittance providers. Thanks to its unique architecture, XRP has cemented its status as a key player in the payment processing space.

XRP's minimal costs and 4-second transaction times make it a preferred choice for users and institutions alike. 

Solana (SOL) - $0.00025 per transaction

Solana’s transaction fees cost just fractions of a cent ($0.00025), with complex transactions also coming in incredibly cheap. The network stands out for its lightning-fast transactions, typically wrapping up in about 2.5 seconds. Thanks to its scalable design, Solana can handle many transactions simultaneously, making it a hit for dapps and big blockchain projects.

This efficiency, coupled with its rapid speed, has made Solana a favourite among both developers and users, and a permanent feature in the top 10 biggest cryptocurrencies based on market cap (currently number 5).

Litecoin (LCH) - $0.0025 per transaction

Litecoin stands out as one of the cheapest crypto options out there, costing around $0.0025 per transfer. As an early pioneer in the space, Litecoin was designed with fast, affordable payments in mind, borrowing and refining Bitcoin's underlying technology. Litecoin's speedy 2.5-minute transaction times add to this appeal.

The minimal fees on Litecoin are a huge plus, with its efficiency and speed making Litecoin an attractive choice for those seeking a cost-effective crypto.

Bitcoin Cash (BCH) - $0.01 per transaction

Bitcoin Cash makes it onto the list with an attractive $0.01 average transaction fee. As a Bitcoin offshoot, BCH was engineered for faster, more affordable transfers via larger block sizes. 

The cost-effective fees on Bitcoin Cash have made BCH a viable option for those looking for a low-cost market entry and equally impressive low-cost transaction fees. 

Dogecoin (DOGE) - $0.04 per transaction

Dogecoin, born in 2013 as a playful take on crypto, has surprisingly become a significant player in the crypto space. Despite its lighthearted meme-inspired origins, Dogecoin's enthusiastic community and celebrity endorsements have propelled it into the mainstream. 

Its low $0.04 average transaction fees and fast 1-minute transaction times make it practical for frequent micro-transactions like tipping and donations, blending fun and function.

Trade smart, trade with Tap

Users can trade all the tokens mentioned above with equally low exchange fees directly on the Tap app. Adding to the cost-effective nature of the platform, it also offers heightened security and added convenience. It's time to trade smarter, download the Tap app and get started today. 
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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.