Learning the friendly way

Bitcoin, and many other cryptocurrency markets, have seen a phenomenal influx of funds recently, with the overall market cap reaching just shy of $3 trillion. This bullish market presents an advantageous set-up to make money. Trading, while profitable, introduces an array of issues that may be hard for newbies to overcome. 

If you are looking to make profits without the added risks then investing may be your best bet. But before you get into investing, there are some basic concepts you will need to grasp in order to make an informed decision. In this article, we're covering how to invest in Bitcoin and cryptocurrencies and what the difference is between investing and trading.  

Investing vs Trading 

To make a long story short, investing refers to long-term holdings while trading refers to short-term holdings, both are seeking profits within the market.

Generally speaking, investors are after greater returns over a longer period of time while traders seek to draw smaller, more frequent returns from rising and falling markets in a much shorter time frame. Trading thrives off of volatile markets, whereas investing seeks more stable options for longer-term rewards. Both provide the opportunity for profits, but each has benefits and flaws of its own. 

For newbies and those who have a more busy lifestyle, investing is the best option as it does not depend on your understanding and monitoring of market movements. Trading on the other hand is more of a career path, it requires considerably more time dedication, while also holding greater risk. As the saying goes, all traders should be investing but not all investors should be trading. 

It's important to note that both investing and trading have their own tax regulations and it is on the individual to find out and adhere to these laws. Bank on paying taxes on any returns made, as a general rule of thumb, but always research the guidance information relevant to your jurisdiction, i.e. tax paid on crypto returns will vary from the UK to Germany.

Bitcoin vs Altcoins 

Bitcoin, the first cryptocurrency to come into existence, boasts an impressive market cap and is the highest valued cryptocurrency to date. After it launched in 2009, many cryptocurrencies followed suit and were coined "alternative coins" which soon became shortened to altcoins. While these originally focused on payment-centred cryptocurrencies, today the term altcoin essentially refers to any cryptocurrency that isn't Bitcoin. 

When it comes to investing and Bitcoin vs altcoins, Bitcoin has proven to be the most valuable coin however there are plenty of small to medium cap markets that experience incredible growth. Consider Bitcoin's large price point to be a hindrance to short term investments, but more powerful in the long run. 

To put it into perspective, data shows that if you invested $50,000 into Bitcoin when it was trading around $60,000, you would have to wait for Bitcoin to hit $120,000 before you double your investment. However, if you invested that same $50,000 into an altcoin when it was worth $1, it would only have to reach $2 for you to double your money which is a lot more likely than Bitcoin doubling in the same period. However, this doesn't ring true to all altcoins and one must always do thorough research before investing. 

Altcoins come in all different shapes and sizes, some tackling industries from medical to real estate, all backed by the financial aspect of blockchain technology. Investing is about more than just profits, it is also about the project. Is it something you are interested in and could benefit from in the future? Is it something that could change the world for the better? Does it have real-world use cases? 

All of these are factors to consider when planning to invest. The potential behind the project is oftentimes what secures it as a viable investment option, promising great opportunity for adoption, stability, and growth. At the end of the day, investing in altcoins requires a considerable amount of research.

Where And How To Invest

The first thing you need to consider is which exchange and wallet you will be using. Long term investments mean you need to find a platform you can trust to store your funds in a longer-term time frame. This is the key to securing your investment, rather than coming back a year or two later to discover your funds are gone. 

Some people recommend companies offering hardware wallets to reinforce that investment "do not touch" mindset while others prefer web wallets that are more accessible. It's really up to you which platform you decide you go with, considering all the features and factors, your needs, and confirming your decision with your own research. Make sure to stay up to date on the platform you are storing your funds on to be alerted of any software upgrades, if any hacks occur or if a platform closure notice goes up. 

At Tap, we have integrated a hyper-secure wallet into our mobile app, allowing anyone, anywhere to securely store their funds. We are licensed and regulated by the Gibraltar Financial Services Commission and hold insurance of up to $100 million, ensuring the protection of your digital assets at all times. The mobile app also grants users access to a number of cryptocurrency markets, where you can freely buy, sell and manage your portfolio.

Final Thoughts 

Investment as a term isn't a difficult concept to catch onto, but finding the right investment is the important part. It is always recommended that you do your own research, and in-depth analysis at that, and don't be scared to diversify your assets. The investment world is yours for the taking, so get out there and start building a lucrative investment portfolio.

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FAQ

What is Bitcoin and how does it work?

Bitcoin is arguably this century's greatest innovation: a decentralised digital currency built on blockchain technology that allows for the transfer of value across the internet. This peer-to-peer digital cash system facilitates international payments at a fraction of the cost and time that fiat transactions of that nature take and are as simple as sending an email. Instead of being controlled and managed by banks or government entities, new coins are regularly entered into circulation through the process of mining. You can learn more about Bitcoin, blockchain transparency, and its lack of intermediaries from our guides.

Should I invest in Bitcoin?

As mentioned above, Bitcoin holds great market potential for both investors and traders. Since 2009, Bitcoin has performed well in terms of displaying strong ROIs, something most investors see as a benefit for future gains. However, investing in Bitcoin comes with its own risks that each individual should consider before entering the market. As a rule, never invest more than you are willing to lose.

Which are the three biggest cryptocurrencies?

Currently, based on market cap the three biggest cryptocurrencies are Bitcoin, Ethereum and Tether.

What are the alternatives to Bitcoin?

Alternatives to Bitcoin are referred to as altcoins. While there are thousands of cryptocurrencies on the market, not all are worth investing in. It's best to research each coin individually and weigh up the project before investing in it. Consider a cryptocurrency as a company, and purchasing coins as buying shares in the business.
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Disclaimer: This article is intended for communication purposes only, you should not consider any such information, opinions or other material as financial advice. The information herein does not constitute an offer to sell or the solicitation to purchase/invest in any crypto assets and is not to be taken as a recommendation that any particular investment or trading approach is appropriate for any specific person. There is a possibility of risk in investing in crypto assets and investors are exposed to fluctuations in the crypto asset market. This communication should be read in conjunction with Tap's Terms and Conditions.

When used to using the traditional banking system, learning how to pay and get paid in crypto might sound daunting. While there are a lot of factors to consider, it’s really a lot more simple than one might imagine.

Below we’re taking a look at the advantages of using digital currency to pay and get paid, and how to go about doing this safely and securely. 

The first proper use case of blockchain as we know it today was money. Bitcoin was designed as a decentralized digital means of transacting value at a faster and cheaper rate than traditional fiat currencies. Over a decade later and this still remains the case for digital assets. 

Cryptocurrencies like Bitcoin allow individuals to be paid quickly and simply regardless of where they are in the world. However, crypto operates in a very different way to traditional banking systems, which means you'll need to understand your way around it first. 

The Advantages of Using Crypto Payroll Services

The nature of cryptocurrencies allows crypto payroll services to offer several benefits for both employers and employees, particularly when the parties are located in different countries. The advantages are in part because there is no middleman concerned when using virtual currencies, which results in lower transaction fees, faster transaction speeds, and higher dependability. 

The Advantages of Digital Currencies for Businesses

Small enterprises face intense rivalry from bigger businesses in a global economy. Small companies, particularly in the tech space, may lack local expertise making foreign job markets more attractive. 

It’s often the case that those skills are available remotely, and often at a much better price, but accessing remote workers can be difficult, mostly due to the problems of sending money overseas. This can be a costly, time-consuming and unreliable process.

Some workers with the right skills simply won’t have access to the banking infrastructure or services that allow them to accept money from overseas employers.

This is where cryptocurrencies come in. You can use Bitcoin or other cryptocurrencies to access the international gig economy of digital nomads and highly-trained specialists.

Because cryptocurrency allows you to transfer funds at a significantly lower cost than traditional services, you won't have to worry about one person having to pay the costs of remittance, which can be costly when using conventional money transmission platforms. 

No matter how much money you’re sending, Bitcoin transaction fees are considerably lower than fiat currency, typically less than $1, allowing businesses to outsource small jobs or split a project into smaller parts. This can ensure that all parts of the project are given to a contractor who has the right skills and is a good fit for your firm. 

The Advantages of Digital Currency for Individuals

There are several benefits to accepting crypto payments, which might even outweigh the advantages for businesses (which, of course, makes implementing Bitcoin payroll procedures a lucrative option for organizations that need to hire remotely).

• First and foremost, getting paid in crypto is faster and more efficient than international fiat payments. Cutting out days, foreign exchange charges and hefty fees, crypto transactions are settled in a matter of minutes for a fraction of the cost. 
• Accepting crypto allows the individual to accept remote work, allowing for a greater scope of projects and companies. Working with companies with no geographical borders can present some incredible opportunities, more of which revolve around better income and more exciting projects.
• Working with cryptocurrency transactions allows for small amounts of money, whereas previously with fiat currency the charges would be too high to do so. This allows the individual to take on many small jobs across a range of businesses or interests.
• As some cryptocurrencies, like Bitcoin, provide a strong store of value, this allows users the chance to be more flexible with their funds, perhaps storing crypto assets away as savings (cryptocurrency holdings) which in time will ideally grow. Some crypto platforms, like Tap, even allow users to pay bills using their crypto balances.

The Legal Status Of Crypto Payments (and capital gains tax)

While Bitcoin transactions are completely secure, fast, and inexpensive, there is one element one will need to consider, and that is the legal status of cryptocurrencies in one’s jurisdiction.

Most nations have favorable regulations in place when it comes to receiving, sending and storing cryptocurrencies, however, it differs from country to country so it is important to check this prior to diving right in. 

On top of that, one must check the tax obligations relevant to your jurisdiction. Some countries treat crypto salaries as taxable income, while other countries treat it as capital gains tax. Check with a professional in your area should you need to.

How To Pay With Bitcoin

If you’re looking to pay employees in Bitcoin you will first need to get Bitcoin. You can acquire the cryptocurrency in one of three ways: mining, buying or receiving it as part of your business’ income. Depending on the services your company provides, it is most likely that you will need to buy Bitcoin before paying workers, which you can do conveniently and securely through Tap.

When you pay your workers with cryptocurrency payments, you will send them a dollar-equivalent amount of Bitcoin, relevant to the price of Bitcoin at the time of transfer. For example, if the price of Bitcoin is $50,000 and you owe them $2,500, you will need to send them 0.05 BTC.

Most exchanges will calculate this for you, showing the current dollar/crypto exchange rates. Tap also ensures that users receive the best price on the market at any given time through smart trade technology.

How To Get Paid In Cryptocurrency

For contractors who want to get paid in Bitcoin or other digital currencies, the approach is much the same only in reverse. However, you’ll need to consider what you want to do with the cryptocurrency you receive, and how you will store it.

Tap provides the perfect solution to both options as you can securely store your Bitcoin and other cryptocurrencies in the wallet provided, while also being able to use your crypto or fiat balance to pay fiat bank accounts and municipal bills and make other payments. 

Receiving and sending crypto is simple. All you need to do is open your Tap app, select the cryptocurrency you would like to receive and locate the relevant wallet address. Share this with your employer and the funds will be deposited directly into your account. Yes, it's really this easy.

In Conclusion

There are several advantages for businesses that pay their employees or freelancers in Bitcoin, as well as contractors who want to get paid in Bitcoin. These include fast, low-cost, and secure transactions regardless of where the parties are located, as well as access to a global market of employment and labor.

It's the perfect way to optimize operations, lower expenses, and find the best man for the job. 

While cryptocurrencies have been around for over a decade we continue to learn and observe new things in the market to this day. Over the years many trading patterns have been repeated, regulation has changed the nature of the game and of course, volatile price movements have played out.

While this sounds unpredictable and scary, it has also allowed trading analysts to observe the cyclical nature of these activities. This information allowed investors and customers to better understand the crypto market cycles, and more importantly, use them to their advantage. 

In this article, we'll show you how to not only understand the crypto market cycles but how to identify and use them to your advantage.

What are market cycles?

Reaching beyond the cryptocurrency market and across a wide range of assets, market cycles are no stranger to stocks, commodities, etc. They are regular occurrences and can be summarised as the stages in between the all-time high and the low of a market. Whether trading traditional stocks, money, or assets built on blockchain technology, market cycles are prevalent across the board.

The length of a market cycle can vary and will depend on what style of trading one is conducting (short term/long term) however they are always categorised by four main components. These phases in the cycle are categorized by the accumulation, markup, distribution, and markdown phases and will be outlined based on analysis and research below.

The four phases of a market cycle

1. Accumulation phase

This takes place when the market has reached a low and prices have flattened. While many view this as a negative stage in the market cycle, many others (particularly ones with experience in the crypto market) view it as a prime time to buy the asset. When traders accumulate the undervalued asset, this is referred to as "buying the dip" and is often a lucrative endeavour. 

These low price swings are often paired with a lot of indecision in the market as weak hands exit the market and long term traders enter it, representing a period of consolidation. This typically happens before an uptrend. The accumulation phase is over when the market sentiment moves from a negative stance to a neutral one. During this phase, a lot of money is both entering and leaving the market at the same time.

2. The markup phase

As the sentiment shifts, the market begins to climb and more stability takes shape. Typically more experienced traders will continue buying, further igniting the bullish trend, and in turn saturating the crypto's buying power. This will eventually fuel FOMO, drawing many buyers into the market and in turn pushing up the price. 

As the market greed increases and trading volumes spike, the markup phase will see high-profile investors begin to sell. This slows the price increases and causes a pullback in the market. As the accumulation phase saw a move from negative to neutral sentiments, the markup phase represents a shift from neutral to bullish to euphoria. 

3. Distribution phase

With the price reaching its peak, the mixture of sellers and buyers send the market into sideways trading. The sentiment is a combination of greed, fear and hope as some believe the market could spontaneously surge again. Typically, the distribution phase is coloured with many bullish price indicators such as head and shoulder trading patterns and double or triple tops, however, the sentiment will eventually shift to a negative space, easily triggered by bad news.

The distribution phase can take place over a short period of time, or last months on end, depending on the number of consolidations, breakouts, and pullbacks and is known to be the phase with the highest levels of volatility. The distribution phase will witness the sentiment turning negative.

4. The markdown phase

The markdown phase is the fourth and final phase in the market cycle and can be the most upsetting for inexperienced traders caught off guard. While some traders might sell at a loss, others maintain their positions looking to leverage a later phase of the next cycle.

The markdown phase sees a decline in price and is a strong indicator that a bottom is approaching. When the price reaches half of its peak value there is generally another mass sell-off, driving the downtrend further into the red. The sentiment is unequivocally negative. 

Example of a crypto market cycle

Looking at the Bitcoin network, many traders believe the cycles revolve around the halvings. Bitcoin halvings are when the miners' rewards for mining a new block are reduced by half, which takes place every 210,000 blocks (roughly every 4 years).

To date, three Bitcoin halvings have taken place, each one instigating a bull run in months to follow. The most recent halving took effect on 11 May 2020, when the BTC price was trading at $8,600. Just 7 months later the price reached $40,000 for the first time in history, setting off a string of all-time high records. To date, the highest Bitcoin price that has been reached is $68,789.63 in November 2021 but went on to lose 40% of its value over the next two months. 

Market cycles are based on the cryptocurrency's overall trading patterns and not on any exchange activity. In a perfect world, the cryptocurrency's trading patterns will reflect the four phases mentioned above in this set order, allowing a set amount of time between transitions.

With time, crypto customers will be able to identify these phases, allowing any individual to build strategies around when to open or close a position, leading to the best trade result. While there is still risk involved, understanding the data surrounding the cyclical nature of trading patterns will assist in getting the best out of a digital asset project.

Crypto supercycles

Crypto supercycles are a unique phenomenon in the blockchain industry. They involve price fluctuations across the entire crypto market, influenced by the increasing adoption of blockchain technology. This concept is more speculative than concrete, lacking well-defined parameters. It revolves around factors like the rise of institutional investors and retail adoption. Opinions vary regarding the existence of the supercycle (notably, Bitcoin's value has surged more than fivefold in a year). This market cycle stands out for its series of all-time highs, with minimal significant or lasting declines. Irrespective of the presence of a crypto supercycle, individuals can consider capitalizing on the market cycle by purchasing Bitcoin during the accumulation phase as prices gain traction after hitting a low point.

For those keen on comprehending crypto trading cycles, it's prudent to formulate a personal strategy for navigating diverse market cycles, as mentioned earlier. Analyzing market trends and patterns has the potential to be rewarding. While some individuals pursue day trading and financial services as a full-time occupation, studying the markets and their behaviors can in some instance also be a profitable part-time pursuit.

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Yield farming is a method to generate more crypto with your crypto holdings. The process involves you lending your digital assets to others by means of the power of computer programs known as smart contracts.

Cryptocurrency holders have the option of leaving their assets idle in a wallet or binding them into a smart contract to assist with liquidity. Yield farming allows you to benefit and gain rewards from your cryptocurrency without spending any more of it. Sounds quite easy, right?

Well, hold on because it isn't that straightforward and we are just getting started. 

Yield farmers employ highly advanced tactics in order to improve returns.

They constantly move their cryptocurrencies among a variety of lending markets in order to optimize their returns. After a quick Google search, you would wonder why there isn't more content surrounding strategies and why these yield farmers are so tight-lipped about the greatest yield farming procedures.

Well, the answer is quite simple: the more people are informed about a strategy, the less effective it becomes. Yield farming is the lawless territory of Decentralized Finance (DeFi), where farmers compete for the opportunity to grow the highest-yield crops. 

As of November 2021, there is $269 billion in crypto assets locked in DeFi, gaining an impressive almost 27% in value compared to the previous month of October.

The DeFi yield farming rise shows that the excitement in the crypto market has extended far beyond community- and culture-based meme tokens and planted itself in the centre of the hype. What exactly does it take to be a yield farmer?

What kinds of yields can you anticipate? Where do you start If you're considering becoming a yield farmer?  Here, we'll guide you through everything you need to know.

What is Yield Farming? 

Also referred to as liquidity farming, yield farming is a method for generating profits using your cryptocurrency holdings instead of leaving them idle in an account on a crypto website. In a nutshell, it involves bidding cryptocurrency assets into platforms that offer lending and borrowing services and earning a reward for it.

Yield farming is similar to bank loans or bonds in that you must pay back the money with interest when the loan is due. Yield farming works the same way, but this time, the banks are replaced in this scenario by crypto holders like yourself in a decentralized environment. Yield farming is a form of cryptocurrency investment in which "idle cryptocurrencies" that would have otherwise been held on an exchange or hot wallet are utilized to provide liquidity in DeFi protocols in exchange for a return. 

Yield farming is not possible without liquidity pools or liquidity farming. But, what is a liquidity pool? It's basically a smart contract that contains funds. Liquidity pools are working with users called liquidity providers (LP) that add funds to liquidity pools. Find more information about liquidity pools, liquidity providers, and the automated market maker model below.

How Does Yield Farming Work?

Liquidity pools (smart contracts filled with cash) are used by yield farming platforms to offer trustless methods for crypto investors to make passive revenue by loaning out their funds or crypto using smart contracts.

Similar to how people create bonds to pay off a house and then pay the bank interest for the loan, users can tap into a decentralized loan pool to pay for the bonds.

Yield farming is a type of investment that involves the use of a liquidity provider and a liquidity pool in order to run a DeFi market. 

• A liquidity provider is a person or company who puts money into a smart contract.
• The liquidity pool is a smart contract filled with cash. 

Liquidity providers (LPs), also known as market makers, are in charge of staking funds in liquidity pools enabling sellers and purchasers to transact conveniently by executing a buyer-seller agreement utilizing smart contracts. LPs earn a reward for providing liquidity to the pool. Yield farming is based on liquidity providers and liquidity pools, which are the foundations of yield farming. These work by staking or lending crypto assets on DeFi protocols to earn incentives, interest or additional cryptocurrency. It's similar to how venture capital firms invest in high-yield equities, which is the practice of investing in equities that offer better long term results. 

Yield farmers will frequently shuffle their money between diverse protocols in search of high yields. For this reason, DeFi platforms may also use other economic incentives to entice more capital onto their platform as higher liquidity tends to attract more liquidity. The method of distribution of the rewards will be determined by the specific implementation of the protocol. By yield farming law, the liquidity providers get compensated for the amount of liquidity they contribute to the pool.

How Are Yield Farming Returns Calculated?

Estimated yield returns are calculated on an annualized model. This estimates the returns that you could expect throughout a year. The primary difference between them is that annual percentage rates (APR) don't consider compound interest, while annual percentage yield (APY) does. Compounding is the process of reinvesting current profits to achieve greater results (i.e. returns).  Most calculation models are simply estimates. It is difficult to accurately calculate returns on yield farming because it is a dynamic market and the rewards can fluctuate rapidly leading to a drop in profitability. The market is quite volatile and risky for both borrowers and lenders.

Before Getting Started, Understand The Risks Of Yield Farming

Despite the obvious potential benefits, yield farming has its challenges. Yield farming isn't easy. The most successful yield farming techniques are quite complex, recommended only to advanced users or experts who have done their research.

Here are the different risks: 

Smart contract

Smart contracts are computerized agreements that automatically implement the terms of the agreement between parties and predefined rules. Smart contracts remove intermediaries, are less expensive to operate and are a safer way to conduct transactions. However, they are vulnerable to attack vectors and bugs in the code.

Liquidation risks 

DeFi platforms, like traditional finance platforms, use customer deposits to create liquidity in their markets. However, if the collateral's value falls below the loan's price, you would be liquidated. Collateral is subject to volatility, and debt positions are vulnerable to under-collateralization in market fluctuations.

If you borrow XX collateralized by YY a rise in the value of XX would force the loan to be liquidated since the collateral YY value would be inferior to the value of the XX loan.

DeFi Rug Pulls

In most cases, rug pulls are obvious exit scams that are intended to entice investors with a well-manufactured promising project in order to attract investors. 

A crypto rug pull happens when developers create a token paired with a valuable cryptocurrency. When funds flow into the project and the price rises, developers then seize as much liquidity they can get their hands on resulting in losses for the investors left in. 

Impermanent loss

Impermanent loss happens when a liquidity provider deposits their crypto into a liquidity pool and the price changes within a few days. The amount of money lost as a result of that change is what is called an impermanent loss. This situation is counter-intuitive yet crucial for liquidity providers to comprehend.

Exercise Caution When Getting Into Yield Farming

If you have no prior knowledge of the cryptocurrency world, entering into the yield farming production may be a hazardous endeavour. You might lose everything you've put into the project. Yield farming is a fast-paced and volatile industry. If you want to venture into yield farming, make sure you don't put more money in than you can afford, there's a reason why the United Kingdom has recently implemented serious crypto regulations.

What The Future Holds For Yield Farming

We hope that after reading this article you will have a much deeper understanding of yield farming and that it answered some of your burning questions.

In summary, yield farming uses investors' funds to create liquidity in the market in exchange for returns. It has significant potential for growth, but it's not without its faults.

What else might the decentralized financial revolution have in store for us? It's difficult to anticipate what future applications may emerge based on these present components. However, trustless liquidity protocols and other DeFi technologies are driving finance, cryptoeconomics, and computer science forward.

Certainly, DeFi money markets have the ability to contribute to the development of a more open and inclusive financial system that is accessible to everyone with an Internet connection. 

Level up your crypto trading with the right tools. Whether you’re brand new to the industry or a seasoned trader, you can never know enough about the industry, the crypto market or what to expect. Crypto trading is a unique and exciting endeavour, and we’re here to make sure you always have your best foot forward. 

It’s not always easy to know where to start

Being a beginner at anything in life is hard, and the crypto industry is no exception. It’s common for newbies to be inundated with content and it’s not easy to know what’s worth your attention and time and what isn’t. On top of that, there is also a lot of misinformation out there, with publications or platforms selling services through content directed to that purpose.

Through our Crypto Basics platform, you can learn the fundamentals of the crypto industry. We’ve curated the topics to ensure that you get a broad understanding while still covering topics that are relevant to your learning curve. Entering the crypto market should be fun and stimulating, so we’ve geared our Crypto Basics platform as well as all our content toward that.

Start Learning Right From Our Crypto Basics Learning Portal

Learn Now

Tap crypto basics 101

In our online learning portal, you will have access to plenty of blogs to assist you in gathering all the knowledge you need to know. We’ll start you off with an introduction to the three top cryptocurrencies, explaining what they are, how they came about, and what functions they offer. After the crash course on Bitcoin, Ethereum and Litecoin you’ll have a good idea of what cryptocurrencies are and how they differentiate themselves. You’ll then be introduced to altcoins, a common term used to refer to any cryptocurrency that isn’t Bitcoin.

What is Bitcoin?

What is Ethereum?

What is Litecoin?

What Are Altcoins?

From there you can gain an understanding of how cryptocurrency transactions work and what goes on behind the scenes to facilitate these digital transactions. We’ll also give you an introduction to how mining works, a term used to describe the process of new coins entering the system (also used to verify and process transactions). 

How Do Bitcoin And Altcoin Transactions Work?

What is Bitcoin Mining and How Does it Work?

How Long Will It Take To Mine All The Bitcoins?

In the explanation on Ethereum or across the industry in general, you will likely come across terms like “smart contracts”, “dapps” and “DeFi”. We’ve got you covered with simple explanations on each of these, delivering a comprehensive overview to help you navigate news pieces or forum discussions with confidence. 

What Are Smart Contracts?

What Are Dapps?

What is DeFi?

From there you can explore industry terms like “what is KYC?” as well as take a look at things like market caps and bull versus bear markets. These terms you will hear a lot of in the industry, and these blogs provide you with the terminology to breeze through. 

What is KYC?

What is Market Cap?

What is A Bull Or Bear Market?

Tap into your own potential

This is a good introduction to our Learning Portal, however, there is so much more on offer. As we constantly update the portal be sure to check in when you’re ready for your next dose of crypto knowledge, or better yet bookmark the link so that you constantly are in the know. We regularly update the section with new and insightful material, so be sure to check-in. You’re never too experienced to upgrade your crypto knowledge, so use Tap as your tool kit to further expand your crypto knowledge and navigate the markets with ease. 

With the recent rise in meme tokens and dog-themed coins, any coins with a Shiba Inu (a Japanese breed of dog) mascot seem to attract all the right kinds of attention. With the real Shiba Inu (SHIB) token winning "investment vehicle" of the year in 2021 after posting unbelievable gains, many are still wondering whether Shiba Inu is still a good token?

Where Did It All Begin?

A golden rule of getting in crypto is to understand exactly what you're buying in before taking the plunge. Before we explore Shiba Inu's history, we must start at the beginning with Dogecoin. Dogecoin was the original meme token and entered the crypto scene in 2013. The coin was designed to provide a "light-hearted" alternative to Bitcoin, poking fun at the seriousness of the crypto community at the time with its Shiba Inu logo. 

As it turned out, Dogecoin built a strong and loyal following that has stuck by the coin ever since. It wasn't until 2020 when Tesla CEO Elon Musk became vocal on Twitter about the cryptocurrency that DOGE truly went viral. 

What is Shiba Inu Coin?

Musk's interest in Dogecoin aligned nicely with the launch of Shiba Inu, which officially went live in August 2020. It wasn't long before SHIB climbed the ranks and became the biggest meme token on the market based on market capitalization, albeit for a brief moment. While it was dubbed in comparison as the "Doge Killer", Dogecoin still held the most value. It's worth noting that each time Musk mentioned Dogecoin in writing, Shiba Inu enjoyed some of that success and popularity as displayed by its growth.

Shiba Inu is an ERC-20 token built on the Ethereum platform that powers the Shiba Inu network. The platform features a range of products, from an exchange to an art incubator, and is compatible with a wide range of apps due to its Ethereum based nature. Trading for a fraction of a US cent, Shiba Inu offers a cost-effective way to enter the crypto market. Several businesses have also started accepting the cryptocurrency, allowing customers to pay for sales with SHIB.

How Is Shiba Inu Different From Dogecoin?

A great place to start when trying to understand SHIB is to determine the differences between these two biggest meme tokens. Starting with Dogecoin, the network provides a fast and cheap peer-to-peer payment system that is commonly used for tipping on social media platforms. 

Shiba Inu on the other hand is a little bit more complex. The platform provides a decentralized exchange (DEX) known as ShibaSwap which allows users to earn interest, as well as two other tokens, BONE and LEASH. The project describes itself as an experiment in decentralization. 

Shiba Inu is built on top of the Ethereum protocol, with the tokens created using various token standards, SHIB being an ERC-20 token. This makes it highly compatible with ETH wallets and most DeFi apps, while DOGE requires a specific wallet. These are all reasons as to why investors are calling it the Doge Killer.

Does Shiba Inu (SHIB) Have a Future?

In 2021, Shiba Inu saw gains of 53,241,775%. Investors that bought $2 worth of SHIB on 1 January would have been sitting on millions of dollars worth of returns at the height of the bull run. That's enough to make any digital currency enthusiast look twice. 

So far in 2022, the markets have been predominately down, with Bitcoin and Ethereum falling roughly 35% from their highs in November. Shiba Inu on the other hand has lost around 70% of its value since its all-time high in October 2021. Despite this, it has seen upward swings since, gaining a large amount of value in early February. 

The surge is believed to be contributed to by an Italian fast-food chain called Welly's. Welly's is also Shiba Inu-themed and accepts the cryptocurrency as a form of payment. Two other believed catalysts are the upcoming Shibarium (Shiba Inu's latest blockchain project) designed to reduce transaction fees and the project's vocalized intentions of entering the metaverse. 

Can Shiba Inu Coin Reach $1?

A popular question among crypto afficionados is whether Shiba Inu can reach $1. While there is certainly speculation in the market that this is possible over a substantial period of time, as with any cryptocurrency there is no guarantee on how much money it will be worth in the future. With the price affected by supply and demand economics, there will need to be a considerable amount of hype and demand for the cryptocurrency in order to it to reach that value.

While Shiba Inu could be a promising token should it skyrocket again, it is still considered to be a risky token. The cryptocurrency certainly has an attractive price point and a number of use cases, however, it is also in its early stages as a crypto and is currently less widely accepted when compared to other cryptocurrencies.

As the world waits on authority news regarding the regulatory framework surrounding cryptocurrencies, there are definitive hurdles that need to be reached before the Shiba Inu coin reaches $1, should it do so. There are currently over 545 trillion SHIB in circulation. For your protection, ensure that you never put more funds than you're willing to lose.

How Can I Buy Shiba Inu In The UK?

In love with SHIB or Shiba inus in general? Should you wish to purchase some Shiba Inu (SHIB) with your British pounds (GBP), you can do so easily and securely through the Tap mobile app, from where you can also store the tokens. Tap accepts GBP and supports faster payments for lightning-fast top-ups while allowing users to buy, sell, and engage in a number of cryptocurrency markets and services.

How Can I Buy Shiba Inu In Europe?

In love with SHIB in europe? We got you covered. Should you wish to purchase some Shiba Inu ( SHIB ) with Euros, you can do so with ease and securely through the Tap mobile app, from where you can also store the tokens. Tap accepts Euro and supports SEPA transfers to enable all EU & EEA traders and investors to buy, sell, and engage in a number of cryptocurrency markets and services. 

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