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Top 6 Things to Expect in Crypto in November 2025

November 2025 could be a turning point for crypto. From ETFs to major network upgrades, here are six catalysts that could shape the market.

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As we move into November 2025, the crypto-market is gearing up for one of its most intriguing phases yet. From spot-ETF momentum to narrative shifts, network upgrades and real-world asset tokenization, multiple catalysts are aligning. Here are six key developments to watch.

1. Seasonality & Historical Momentum Could Kick In

While "Uptober" fell short of expectations, November could tell a different story. Historically, it's been one of the strongest months for digital assets, with Bitcoin in particular averaging +42.31% gains in recent years.

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When combined with the renewed ETF narrative, increased whale accumulation, and a stronger appetite for risk assets, market momentum appears to be building. Participants are closely monitoring how these dynamics could influence sentiment, especially as trading volumes and key technical levels come into play. If Bitcoin maintains stability around the $100K zone and Ethereum shows signs of renewed strength, November could become a more active month for crypto markets compared to October.

2. Ether’s Next Move Could Set the Tone for Altcoins

The final weeks of 2025 may prove pivotal for Ethereum (ETH). Although retail accumulation has paused somewhat, wallet-level data shows large holders (1,000 to 100,000 ETH wallets) added roughly 1.6 million ETH in October (around $6 billion), it’s a sign that whales and larger holders are staying active as the year winds down.

If ETH begins to break out or even stabilize around current levels, it could unlock the broader altcoin market, which has been lagging for months. The playbook that many are hoping for is the following one: ETH strength leads to improved risk appetite, which in turn sparks an altcoin rotation as investors seek higher risk exposure.

Ethereum remains the accepted benchmark for gauging sentiment across the non-Bitcoin segment of the market, and its performance frequently acts as a catalyst for capital flows into smaller assets. Keeping an eye on its fundamentals (from staking yield to liquidity shifts on major exchanges) will be important. In many ways, ETH could potentially become the gatekeeper to the next phase of the market’s recovery and the tone-setter for the coming months.

3. ETF Comeback After Delays

The recent U.S. government shutdown briefly froze several crypto-spot ETF filings, leaving the “ETF narrative” in suspense. But now the pause is over for Bitwise’s Spot Solana ETF. It has finally launched with strong early inflows, and the broader momentum is returning.

With this foundation, November could reignite the ETF trade in earnest, we may finally see filings for Ethereum staking products, new spot-Bitcoin funds and renewed institutional interest. If filings begin to stack up and regulatory engagement deepens, this could mark the next major inflection for how crypto is accessed in traditional portfolios.

4. Altcoins at an Inflection Point

The broader altcoin sector enters November under pressure as the Altcoin Season Index sits near 29, signaling a reset after October’s downturn. But inflection points often follow pressure. If ETH sets the tone (as many are hoping for), mid-cap and high-beta altcoins (such as SOL, AVAX, NEAR) could begin to capture rotation flows.

Altcoin Season Index 90-Day Chart. Source.

Traders might want to watch for flow changes such as increased volumes, wallet relocations and new project launches. While caution is still prevailing, this may be the window where sentiment begins to swing back into “altcoin season”.

5. Major Network Upgrades

Technical infrastructure is not just background noise; it often creates catalyst-events. For example, Ethereum’s upcoming Fusaka Upgrade (scheduled for early December) is designed to increase layer-2 data capacity and reduce transaction costs.

Meanwhile, various Layer-2 ecosystems are preparing upgrades and cross-chain activations. One such upgrade, Shibarium Upgrade’s security overhaul on the Shiba Inu network. These events may ignite renewed network activity, developer interest and capital flows into ecosystems ready to scale.

6. Real-World Asset (RWA) Tokenization Accelerates

The tokenization of real-world assets (RWAs), such as real estate, bonds, equities, is moving from niche to mainstream. For instance, according to Standard Chartered, this market is projected to grow to around $2 trillion by 2028. Institutional interest is burgeoning, and regulatory frameworks are emerging.

As November unfolds, we may see announcements of large tokenization initiatives or new platforms bridging DeFi and traditional finance. For crypto holders and ecosystem observers, this means the familiar “crypto only” narrative is expanding into real-asset integration, a meaningful broadening of the opportunity set.

The Verdict

November 2025 is shaping up to be more than just another month. Spot-ETFs potential, ETH’s path, altcoin rotation, seasonal tailwinds, infrastructure upgrades and RWA tokenization all sit in motion. Each one individually is significant; together they create a multi-vector setup.

For those in the crypto space, whether you're holding long-term, actively trading, or building the next wave of infrastructure, November is likely to be eventful. This isn't a month to coast on autopilot. Track where capital is flowing. Pay attention to which narratives are gaining momentum and which are fading. The players are moving, and the pieces are falling into place.

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NEWS AND UPDATES

The Surge After the Storm: What’s Next for Bitcoin and the Market

After a brutal October sell-off, crypto just staged one of its most dramatic comebacks yet. Here's what the market's resilience signals for what comes next.

The crypto market just pulled off one of its boldest recoveries in recent memory. What began as a violent sell-off on October 10 has given way to a surprisingly strong rebound. In this piece, we’ll dig into “The Great Recovery” of the crypto market, how Bitcoin’s resilience particularly stands out in this comeback, and what to expect next…

The Crash That Shook It All

On October 10, markets were rattled across the board. Bitcoin fell from around $122,000 down to near $109,000 in a matter of hours. Ethereum dropped into the $3,600 to $3,700 range. The sudden collapse triggered massive liquidations, nearly $19 billion across assets, with $16.7B in long positions wiped out.

That kind of forced selling, often magnified by leverage and thin liquidity, created a sharp vacuum. Some call it a “flash crash”; an overreaction to geopolitical news, margin stress, and cascading liquidations.

What’s remarkable, however, is how quickly the market recovered.

The Great Recovery: Scope and Speed

Within days, many major cryptocurrencies recouped large parts of their losses. Bitcoin climbed back above $115,000, and Ethereum surged more than 8%, reclaiming the $4,100 level and beyond. Altcoins like Cardano and Dogecoin led some of the strongest rebounds.

Top 6 Cryptocurrencies on October 13, 2025. Source.

One narrative gaining traction is that this crash was not a structural breakdown but a “relief rally”, a market reset after overleveraged participants were squeezed out of positions. Analysts highlight that sell pressure has eased, sentiment is stabilizing, and capital is re-entering the market, all signs that the broader uptrend may still be intact.

“What we just saw was a massive emotional reset,” Head of Partnerships at Arctic Digital Justin d’Anethan said.

“I would have another, more positive take: seeing 10B worth of liquidation happen in a flash and pushing BTC prices down 15%+ in less than 24hrs to then see BTC recoup 10% to 110K is a testament to how far we've come and how massive and important BTC has become,” he posted on 𝕏.

Moreover, an important datapoint stands out. Exchange inflows to BTC have shrunk, signaling that fewer holders are moving coins to exchanges for sale. This signals that fewer investors are transferring their Bitcoin from personal wallets to exchanges, which is a common precursor to selling. In layman terms, coins are being held rather than prepared for trade.

BTC’s Exchange Inflow over a month. Source.

Bitcoin’s Backbone: Resilience Under Pressure

Bitcoin’s ability to rebound after extreme volatility has long been one of its defining traits. Friday’s drop admittedly sent shockwaves through the market, triggering billions in liquidations and exposing the fragility of leveraged trading.

Yet, as history has shown, such sharp pullbacks are far from new for the world’s largest cryptocurrency. In its short history, Bitcoin has endured dozens of drawdowns exceeding 10% in a single day (from the infamous “COVID crash” of 2020 to the FTX collapse in 2022) only to recover and set new highs months later.

This latest event, while painful, highlights a maturing market structure. Since the approval of spot Bitcoin ETFs in early 2024, institutional involvement has deepened, creating greater liquidity buffers and stronger institutional confidence. Even as billions in leveraged positions were wiped out, Bitcoin has held firm around the $110,000 zone, a level that has since acted as psychological support.

What to Watch Next

The key question now is whether this rebound marks a short-term relief rally or the start of a renewed uptrend. Analysts are closely watching derivatives funding rates, on-chain flows, and ETF inflows for clues. A sustained increase in ETF demand could provide a steady bid under the market, offsetting the effects of future liquidation cascades. Meanwhile, Bitcoin’s ability to hold above $110,000 (an area of heavy trading volume) may serve as confirmation that investor confidence remains intact.

As the market digests the events of October 10, one lesson stands out. Bitcoin’s recovery isn’t just a matter of luck, it’s a reflection of underlying market structure that can absorb shocks. It is built on a growing base of long-term holders, institutional adoption, and a financial system increasingly intertwined with digital assets. Corrections, however dramatic, are not signs of weakness; they are reminders of a maturing market that is striding towards equilibrium.

Bottom Line

The crash on October 10 was brutal, there’s no denying that. It was one of the deepest and fastest in recent memory. But the recovery has been equally sharp. Rather than exposing faults, the rebound has underscored the market’s adaptability and Bitcoin’s central role.

The market consensus is seemingly leaning towards a reset; not a reversal. The shakeout purged excess leverage, and the comeback underlined demand. If Bitcoin can maintain that strength, and the broader market keeps its footing in the coming days, this could mark a turning point rather than a cave-in.

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Tap's Crypto Monday (8 - 14 July)

What's driving the crypto market this week? Get fast, clear updates on the top coins, market trends, and regulation news.

Welcome to Tap’s weekly crypto market recap.

Here are the biggest stories from last week (8 - 14 July).

💥 Bitcoin breaks new ATH

Bitcoin officially hit above $122,000 marking its first record since May and pushing total 2025 gains to around +20% YTD. The rally was driven by heavy inflows into U.S. spot ETFs, over $218m into BTC and $211m into ETH in a single day, while nearly all top 100 coins turned green.

📌 Trump Media files for “Crypto Blue‑Chip ETF”

Trump Media & Technology Group has submitted an S‑1 to the SEC for a new “Crypto Blue Chip ETF” focused primarily on BTC (70%), ETH (15%), SOL (8%), XRP (5%), and CRO (2%), marking its third crypto ETF push this year.

A major political/media player launching a multi-asset crypto fund signals growing mainstream and institutional acceptance, and sparks fresh conflict-of-interest questions. We’ll keep you updated.

🌍 Pakistan launches CBDC pilot & virtual‑asset regulation

The State Bank of Pakistan has initiated a pilot for a central bank digital currency and is finalising virtual-asset laws, with Binance CEO CZ advising government efforts. With inflation at just 3.2% and rising foreign reserves (~$14.5b), Pakistan is embracing fintech ahead of emerging-market peers like India.

🛫 Emirates Airline to accept crypto payments

Dubai’s Emirates signed a preliminary partnership with Crypto.com to enable crypto payments starting in 2026, deepening the Gulf’s commitment to crypto-friendly infrastructure.

*Not to take away from the adoption excitement, but you can book Emirates flights with your Tap card, using whichever crypto you like.

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🏛️ U.S. declares next week “Crypto Week”

House Republicans have designated 14-18 July as “Crypto Week,” aiming for votes on GENIUS (stablecoin oversight), CLARITY (jurisdiction clarity), and Anti‑CBDC bills. The idea is that these bills could reshape how U.S. defines crypto regulation and limit federal CBDC initiatives under Trump-aligned priorities.

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.

Understanding the crypto Travel Rule's role

You might have heard of the "Travel Rule" before, but do you know what it actually mean? Let us dive into it for you.

What is the "Travel Rule"?

You might have heard of the "Travel Rule" before, but do you know what it actually mean? Well, let me break it down for you. The Travel Rule, also known as FATF Recommendation 16, is a set of measures aimed at combating money laundering and terrorism financing through financial transactions.

So, why is it called the Travel Rule? It's because the personal data of the transacting parties "travels" with the transfers, making it easier for authorities to monitor and regulate these transactions. See, now it all makes sense!

The Travel Rule applies to financial institutions engaged in virtual asset transfers and crypto companies, collectively referred to as virtual asset service providers (VASPs). These VASPs have to obtain and share "required and accurate originator information and required beneficiary information" with counterparty VASPs or financial institutions during or before the transaction.

To make things more practical, the FATF recommends that countries adopt a de minimis threshold of 1,000 USD/EUR for virtual asset transfers. This means that transactions below this threshold would have fewer requirements compared to those exceeding it.

For transfers of Virtual Assets falling below the de minimis threshold, Virtual Asset Service Providers (VASPs) are required to gather:

The identities of the sender (originator) and receiver (beneficiary).
Either the wallet address associated with each transaction involving Virtual Assets (VAs) or a unique reference number assigned to the transaction.
Verification of this gathered data is not obligatory, unless any suspicious circumstances concerning money laundering or terrorism financing arise. In such instances, it becomes essential to verify customer information.

Conversely, for transfers surpassing the de minimis threshold, VASPs are obligated to collect more extensive particulars, encompassing:

Full name of the sender (originator).
The account number employed by the sender (originator) for processing the transaction, such as a wallet address.
The physical (geographical) address of the sender (originator), national identity number, a customer identification number that uniquely distinguishes the sender to the ordering institution, or details like date and place of birth.
Name of the receiver (beneficiary).
Account number of the receiver (beneficiary) utilized for transaction processing, similar to a wallet address.

By following these guidelines, virtual asset service providers can contribute to a safer and more transparent virtual asset ecosystem while complying with international regulations on anti-money laundering and countering the financing of terrorism. It's all about ensuring the integrity of financial transactions and safeguarding against illicit activities.

Implementation of the Travel Rule in the United Kingdom

A notable shift is anticipated in the United Kingdom's oversight of the virtual asset sector, commencing September 1, 2023.

This seminal development comes in the form of the Travel Rule, which falls under Part 7A of the Money Laundering Regulations 2017. Designed to combat money laundering and terrorist financing within the virtual asset industry, this new regulation expands the information-sharing requirements for wire transfers to encompass virtual asset transfers.

The HM Treasury of the UK has meticulously customized the provisions of the revised Wire Transfer Regulations to cater to the unique demands of the virtual asset sector. This underscores the government's unwavering commitment to fostering a secure and transparent financial ecosystem. Concurrently, it signals their resolve to enable the virtual asset industry to flourish.

The Travel Rule itself originates from the updated version of the Financial Action Task Force's recommendation on information-sharing requirements for wire transfers. By extending these recommendations to cover virtual asset transfers, the UK aspires to significantly mitigate the risk of illicit activities within the sector.

Undoubtedly, the Travel Rule heralds a landmark stride forward in regulating the virtual asset industry in the UK. By extending the ambit of information-sharing requirements and fortifying oversight over virtual asset firms‍

Implementation of the Travel Rule in the European Union‍

Prepare yourself, as a new regulation called the Travel Rule is set to be introduced in the world of virtual assets within the European Union. Effective from December 30, 2024, this rule will take effect precisely 18 months after the initial enforcement of the Transfer of Funds Regulation.

Let's delve into the details of the Travel Rule. When it comes to information requirements, there will be no distinction made between cross-border transfers and transfers within the EU. The revised Transfer of Funds regulation recognizes all virtual asset transfers as cross-border, acknowledging the borderless nature and global reach of such transactions and services.

Now, let's discuss compliance obligations. To ensure adherence to these regulations, European Crypto Asset Service Providers (CASPs) must comply with certain measures. For transactions exceeding 1,000 EUR with self-hosted wallets, CASPs are obligated to collect crucial originator and beneficiary information. Additionally, CASPs are required to fulfill additional wallet verification obligations.

The implementation of these measures within the European Union aims to enhance transparency and mitigate potential risks associated with virtual asset transfers. For individuals involved in this domain, it is of utmost importance to stay informed and adhere to these new guidelines in order to ensure compliance.

‍What does the travel rules means to me as user? ‍

As a user in the virtual asset industry, the implementation of the Travel Rule brings some significant changes that are designed to enhance the security and transparency of financial transactions. This means that when you engage in virtual asset transfers, certain personal information will now be shared between the involved parties. While this might sound intrusive at first, it plays a crucial role in combating fraud, money laundering, and terrorist financing.

The Travel Rule aims to create a safer environment for individuals like you by reducing the risks associated with illicit activities. This means that you can have greater confidence in the legitimacy of the virtual asset transactions you engage in. The regulation aims to weed out illicit activities and promote a level playing field for legitimate users. This fosters trust and confidence among users, attracting more participants and further driving the growth and development of the industry.

However, it's important to note that complying with this rule may require you to provide additional information to virtual asset service providers. Your privacy and the protection of your personal data remain paramount, and service providers are bound by strict regulations to ensure the security of your information.

In summary, the Travel Rule is a positive development for digital asset users like yourself, as it contributes to a more secure and trustworthy virtual asset industry.

‍Unlocking Compliance and Seamless Experiences: Tap's Proactive Approach to Upcoming Regulations‍

Tap is fully committed to upholding regulatory compliance, while also prioritizing a seamless and enjoyable customer experience. In order to achieve this delicate balance, Tap has proactively sought out partnerships with trusted solution providers and is actively engaged in industry working groups. By collaborating with experts in the field, Tap ensures it remains on the cutting edge of best practices and innovative solutions.

These efforts not only demonstrate Tap's dedication to compliance, but also contribute to creating a secure and transparent environment for its users. By staying ahead of the curve, Tap can foster trust and confidence in the cryptocurrency ecosystem, reassuring customers that their financial transactions are safe and protected.

But Tap's commitment to compliance doesn't mean sacrificing user experience. On the contrary, Tap understands the importance of providing a seamless journey for its customers. This means that while regulatory requirements may be changing, Tap is working diligently to ensure that users can continue to enjoy a smooth and hassle-free experience.

By combining a proactive approach to compliance with a determination to maintain user satisfaction, Tap is setting itself apart as a trusted leader in the financial technology industry. So rest assured, as Tap evolves in response to new regulations, your experience as a customer will remain top-notch and worry-free.

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The Surge After the Storm: What’s Next for Bitcoin and the Market

After a brutal October sell-off, crypto just staged one of its most dramatic comebacks yet. Here's what the market's resilience signals for what comes next.

Tap's Crypto Monday (8 - 14 July)

What's driving the crypto market this week? Get fast, clear updates on the top coins, market trends, and regulation news.

Millennials and Gen Z: The Catalysts of the Money Revolution?

Explore key catalysts driving the modern money revolution. Learn about digital currencies, fintech innovation, and the future of finance.

Understanding the crypto Travel Rule's role

You might have heard of the "Travel Rule" before, but do you know what it actually mean? Let us dive into it for you.

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What is Wrapped Bitcoin (WBTC)?

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Despite radically reshaping the world’s financial landscape, the first ever cryptocurrency has limitations when interacting with newer blockchains. For example, Ethereum. Wrapped Bitcoin (WBTC) solves this limitation by allowing Bitcoin to function on the Ethereum network, enabling access to decentralized finance (DeFi) services.

WBTC is an ERC-20 token that represents Bitcoin 1:1 on the Ethereum blockchain, combining Bitcoin’s value with Ethereum’s smart contract power, and opening new opportunities for BTC holders in decentralized finance (DeFi). Unlike Bitcoin variants aiming to improve its technology, WBTC extends Bitcoin's utility without replacing it.

Join us in this deep dive on how WBTC works, its benefits, risks, and how it connects Bitcoin to the broader DeFi ecosystem.

Unlocking Bitcoin’s Power on Ethereum

Launched in January 2019, approximately 10 years after Bitcoin's initial release, WBTC was created as a collaborative effort between BitGo, Kyber Network, and Ren (formerly Republic Protocol), along with other major players in the DeFi space including MakerDAO, Dharma, and Set Protocol.

As an ERC-20 token, WBTC adheres to Ethereum's token standard, making it compatible with the entire Ethereum ecosystem, including its smart contracts, decentralized applications, and wallets.

In structure, WBTC bears similarities to stablecoins like USDC or USDT, which are backed by reserve assets. However, while stablecoins aim to maintain a stable value (usually pegged to a fiat currency like the US dollar), WBTC's value fluctuates with Bitcoin's market price.

Each WBTC token is backed by an equivalent amount of Bitcoin (BTC) held in reserve by a custodian, maintaining a strict 1:1 ratio, meaning 1 WBTC is always equivalent to 1 BTC in value.

Wrapped Bitcoin is now under the control of a Decentralized Autonomous Organization (DAO) called the WBTC DAO. This organization oversees the protocol, ensuring the integrity of the wrapping process and maintaining transparency in the system. Unlike Bitcoin's fully decentralized nature, WBTC relies on certain trusted entities to maintain the backing of the tokens, which creates an interesting balance between utility and trustworthiness.

WBTC belongs to a broader category of financial instruments known as "wrapped tokens." These are cryptocurrencies that are enclosed or "wrapped" in a digital vault and represented as another token on a different blockchain. While WBTC represents Bitcoin on Ethereum, there are other wrapped tokens in the cryptocurrency space, including Wrapped Ether (WETH) which, somewhat paradoxically, is a wrapped version of Ethereum's native token on its own blockchain that conforms more strictly to the ERC-20 standard.

Why Does Wrapped Bitcoin Exist?

Wrapped Bitcoin (WBTC) was created to bridge the gap between Bitcoin and newer blockchain platforms like Ethereum.

1. Bitcoin's limited smart contract functionality

Bitcoin prioritizes security over programmability, making it unsuitable for complex decentralized apps. In contrast, Ethereum supports smart contracts that power a wide range of automated financial services.

2. Access to DeFi for Bitcoin holders

Ethereum's DeFi ecosystem offers lending, trading, and yield farming, but Bitcoin holders couldn't participate without converting their BTC. WBTC solves this, letting them use Bitcoin's value within Ethereum-based applications.

3. Unlocking Bitcoin's liquidity

Bitcoin's vast market capitalization holds significant untapped liquidity. WBTC brings this capital into Ethereum's DeFi network, benefiting both Bitcoin holders and the broader ecosystem.

4. Faster, more flexible Bitcoin transactions

While Bitcoin transactions can be slow and costly, WBTC uses Ethereum's network for quicker, cheaper trades-ideal for active traders and DeFi users.

In short, WBTC enhances Bitcoin's utility without altering its core protocol, connecting it to the evolving world of decentralized finance.

How Does Wrapped Bitcoin Work? The Nuts and Bolts

Wrapped Bitcoin (WBTC) bridges Bitcoin and Ethereum through a secure, transparent process involving key participants and smart contracts.

1. Wrapping and unwrapping process:

Wrapping (BTC → WBTC): Users send Bitcoin to a custodian, who secures it and mints an equivalent amount of WBTC on Ethereum, sending it to the user's Ethereum wallet.

Unwrapping (WBTC → BTC): Users burn WBTC, prompting the custodian to release the equivalent Bitcoin back to their Bitcoin wallet.

This 1:1 pegging ensures WBTC is fully backed by Bitcoin reserves.

2. Key participants:

Custodians (e.g., BitGo): Hold and safeguard the Bitcoin backing WBTC.

Merchants: Authorized to request minting or burning of WBTC.

Users: Individuals or entities using WBTC in Ethereum's DeFi ecosystem.

WBTC DAO Members: Stakeholders who govern protocol decisions.

3. Transparency and verification:

Proof of reserves: Publicly verifiable Bitcoin addresses back every WBTC in circulation.

On-chain verification: Minting and burning are recorded on both blockchains.

Regular attestations: Independent checks confirm reserve accuracy.

4. Technical implementation:

WBTC is built as an ERC-20 token, Ethereum’s standard for fungible tokens. All ERC-20 tokens follow the same set of rules, which makes them interchangeable, easy to trade, and instantly compatible with most Ethereum wallets and DeFi apps.

This makes WBTC easily transferable, compatible with wallets, and usable in DeFi apps like lending platforms, decentralized exchanges, and yield farming protocols. It gives Bitcoin the same programmability and utility as Ethereum-native assets.

Showdown: Wrapped Bitcoin (WBTC) vs. Bitcoin (BTC)

Although WBTC and BTC share the same value, their use cases differ. Bitcoin is designed for security, immutability, and censorship resistance. WBTC, on the other hand, thrives in Ethereum’s ecosystem where smart contracts enable lending, borrowing, and trading.

For storing wealth long-term, Bitcoin remains the go-to. For generating yield or accessing DeFi, WBTC is the practical choice. Different uses for different needs.

How Wrapped Bitcoin Boosts Your Crypto

1. DeFi accessibility:

WBTC lets users leverage Bitcoin in DeFi platforms for:

Lending & borrowing: Use WBTC as collateral on platforms like Aave or Compound to earn interest or borrow assets.

Yield farming: Provide WBTC liquidity for rewards, often surpassing Bitcoin's passive holding returns.

Liquidity provision: Earn trading fees by adding WBTC to pools on exchanges like Uniswap.

Synthetic assets: Mint assets pegged to traditional markets using WBTC as collateral.

2. Enhanced liquidity:

WBTC boosts capital efficiency across Ethereum by:

Expanding DeFi liquidity: Unlocking Bitcoin's market value to strengthen liquidity pools.

Reducing slippage: Deeper markets enable smoother trades.

Providing stable collateral: Bitcoin-backed assets offer trusted options for DeFi protocols.

3. Transaction advantages:

Compared to Bitcoin, WBTC transactions on Ethereum benefit from:

Faster confirmations: Ethereum's ~12-second block times outpace Bitcoin's 10-minute average.

Predictable fees: Ethereum's fee structure can be more cost-effective in certain conditions.

Smart contract integration: WBTC supports complex transactions Bitcoin's network can't handle.

4. Broader utility:

Beyond DeFi, WBTC enhances user options by:

Accessing smart contracts: Participate in advanced applications without selling Bitcoin.

Composability: Use WBTC across multiple protocols simultaneously.

Simplified management: Store WBTC alongside other Ethereum assets in common wallets.

Gaming & NFTs: Spend WBTC in blockchain games or NFT marketplaces.

While WBTC offers significant opportunities, it comes with trade-offs regarding decentralization and security, as covered in the next section.

Navigating Wrapped Bitcoin: Risks and Challenges

Custodial risks

While WBTC brings Bitcoin into DeFi, it introduces centralization as well. WBTC depends on BitGo as the sole custodian to hold the backing Bitcoin, creating a central point of failure. Users must trust these custodians to safeguard funds, process redemptions, and comply with regulations that could freeze assets or restrict conversions.

BitGo, DAO member and sole custodian. Source.

Smart contract risks

WBTC relies on Ethereum smart contracts, which, despite audits, can still have vulnerabilities or coding flaws. It's also affected by Ethereum network issues like congestion, high gas fees, and risks from interacting with DeFi platforms.

Price and market risks

WBTC tracks Bitcoin's price and shares its volatility. In turbulent markets, it may trade slightly above or below Bitcoin's value. Large conversions can strain liquidity, making big trades harder without impacting price.

Operational challenges

Managing WBTC involves both Bitcoin and Ethereum blockchains, which can be complex for newcomers. High Ethereum gas fees and slow WBTC-to-Bitcoin conversions (especially for large transactions) are additional hurdles.

Alternatives with less trust required

Some users prefer fully decentralized options like native Bitcoin, though it lacks smart contract functionality. Other wrapped Bitcoin solutions use different technologies to reduce reliance on custodians.

Wrapping Up WBTC

WBTC represents a shift in the cryptocurrency space, bridging the gap between Bitcoin's unparalleled network security and store-of-value properties with Ethereum's programmability and vibrant DeFi landscape. Since its launch in 2019, WBTC has grown from a novel concept to a cornerstone of cross-chain interoperability, enabling countless new use cases for Bitcoin holders.

For users, WBTC allows exposure to Bitcoin while engaging with decentralized finance (DeFi) on Ethereum and other platforms, enabling participation in both without choosing between them. While for DeFi, Bitcoin's liquidity has fostered growth, stability and asset diversity. WBTC has also paved the way for other wrapped assets, making the crypto ecosystem more interconnected and efficient.

As blockchain technology evolves, solutions like WBTC will address limitations while retaining core utility. Its success shows how cryptocurrency innovation can build upon existing strengths without replacing them.

Other Wrapped Bitcoin alternatives

While WBTC is the most widely used Bitcoin representation on Ethereum, several alternatives have emerged, each with different approaches to the bridge between Bitcoin and other blockchains:

renBTC
tBTC
sBTC (Synthetic BTC)
HBTC
pBTC

How Can I Buy Wrapped Bitcoin (WBTC)?

If you’re looking to bring Bitcoin into the world of Ethereum, Wrapped Bitcoin (WBTC) is the gateway you might be looking for. Through the Tap app, users can easily add WBTC to their portfolios, opening up access to Ethereum’s thriving DeFi ecosystem. Getting started is simple: just download the app, create an account, and start trading WBTC in minutes.

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James

The 5 most common crypto scams to watch out for

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As we move into a more digital world with enhanced security systems, so too are hackers and fraudsters. With millions of dollars lost each year at the hands of these ill actors, in this article we take a look at the 5 most common crypto scams and how to spot them. The financial world need not be a scary place, with a few precautions in place you can bank on being able to avoid them.

What is a crypto scam?

A crypto scam is a type of investment fraud revolving around cryptocurrencies. According to a report by Chainalysis, a record-breaking $14 billion of crypto was stolen last year through crypto scams. While there are many different types of crypto scams, of which we'll explore 5 below, the common thread is that crypto is wrongfully taken from a user through fraudulent activities.

The biggest crypto scam of recent times was in late 2020 when people hacked into the Twitter accounts of high profile individuals and claimed that should someone send Bitcoin or Ethereum to an address they will receive twice the value back. These accounts included the likes of Barack Obama, Elon Musk and Joe Biden.

The top 5 most common crypto scams

While there are an infinite amount of crypto scams out there, below we are highlighting the 5 most common ones.

Fake crypto exchanges

These types of exchanges provide a buy/sell platform on which users can trade cryptocurrency, however, once they have deposited the funds they cannot withdraw any money. These funds might still appear on the platform although the money is long gone.

Always read the reviews of a platform, and do your own research before depositing money anywhere.

Ponzi schemes

Ponzi schemes might have started in the late 1800s but they're still here. The scheme works in such a way that each member earns rewards by recruiting new members, whose money is then used to pay off older members. This eventually reaches a saturation point after which it collapses.

Always do your due diligence and ensure that the scheme you're investing in is solid. If it sounds too good to be true, it probably is.

Fake investment schemes

Be wary of an investment opportunity promising to deliver unbelievable gains. This might be in the form of depositing funds on a platform only to lose the money or struggle to withdraw it at a later stage. These are often circulated through well-known publications or on social media with celebrities "endorsing" the products.

Pump and dumps also fall into this category. These schemes are created when a large group of people decide to invest in a coin, only to drive up the prices and cash out at the top. Many people are then left with a worthless coin at the end, having lost their investment.

Imitating a crypto exchange

Similar to the concept of phishing, someone might create a social media account of a big exchange and contact the user "on behalf of the company". This is intended to gain your trust and is either done in an attempt to gain your passwords, or with a message that you owe large amounts in tax which needs to be paid in Bitcoin immediately to avoid imprisonment.

Never follow links in an email, rather access the site from your own browser directly and be sure to check the URL. Successful scams of this nature often have a small typo in the URL which goes unnoticed.

Malware & ransomware

The malware allows scammers to gain access to your computer, either locking you out of files or stealing credit card or crypto address details. With this information, they can drain your accounts in minutes.

Ransomware works slightly differently in that the scammers lock the entire computer and demand a ransom to gain access again. This is often paired with blackmail where the victim, and in some cases organizations, are threatened that if they don't pay sensitive information will be released. A lot of victims in this situation manage to get out of it unharmed.

These might sound very scary, but should you maintain safe online protocols and check URLs before entering your details, they should be entirely avoided.

5 tips on how to avoid crypto scams

These might sound obvious but it never hurts to read them again. Below are 5 tips on how to stay vigilant and avoid crypto scams entirely.

Be wary of phone calls and emails claiming to be from exchanges and never click the links from them.
Never give your password, private key or security codes to anyone.
Never give someone remote access to your device.
Look out for social media accounts imitating legal firms or exchanges or a prominent person in the industry. Support will never contact you from a social media account.
And lastly, if it sounds too good to be true - it probably is.

Easily avoided, comfortably secure

We hope this information assists you in keeping your data and money secure online, proper security is always imperative when using payment methods or services on the internet. As technology evolves, so too must our security systems and vigilance. With these tips above you should be well on your way to spotting something that doesn't quite look right, and avoiding crypto scam.

Crypto

Ash

Hodling vs trading: What are the pros and cons ?

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There's a time-old debate over whether hodling or trading leads to better profits when it comes to buying into the cryptocurrency market. While both are great options, in the article below we look at the pros and cons of each option and weigh them up.

What is trading?‍

Trading refers to the buying and selling of financial instruments, assets, or commodities in financial markets with the aim of making a profit. Trading requires continuous monitoring of the charts and frequent study, whether in the crypto or stock market. Crypto trading involves buying and selling crypto at various intervals, whether minutes, hours, days, weeks, months, and years. Despite the greater risks involved, the potential for big percentage returns attracts individuals to trading.

If you want to trade crypto assets, it's essential to have a basic knowledge of the industry and how events in the news may influence Bitcoin's price. Remember to set stop losses and take profits so that you can protect your trade.

The pros of trading

Potentially sizable profits

Crypto is known to be a volatile market and it's not uncommon to see price movements of 30% or above when crypto trading. With some strong analytical skills, one can observe, analyze and trade these waves and yield sizable profits.

You're in control

Some people make a living trading part-time or full-time, particularly day trading. Day trading is where you enter and exit positions typically within a 24-hour period. Either way, you are in control of your own hours and workload, allowing you to take a break after you've met or exceeded your daily or weekly earnings targets.

The cons of trading

Need to know trading fundamentals and technical analysis

Before you begin trading, you need to learn how to do fundamental and technical analysis of charts. This process requires dedicated effort and time investment.

Need to be able to manage emotions

The prices of cryptocurrencies can change rapidly, making this a more risky proposition than long-term holding. You must be prepared to sell a losing cryptocurrency when it's plunging or decide to hodl for it to recover. Anything might happen in this fast-paced market, so you must make wise decisions without getting emotional.

What is hodling?

The term first came about in 2013 from a misspelled work in a BitcoinTalk Forum. The inebriated trader made the now infamous typo, and the word stuck. Almost a decade later, the term "hodl" remains a permanent fixture in the crypto ecosystem. Some have since branded it as "Hold On for Dear Life".

The term refers to holding a particular cryptocurrency for long periods of time, ignoring market volatility and knuckling through a bear market. As a passive strategy designed for long-term time frames, hodling requires a trader to simply buy a cryptocurrency and hold it in a secure place for months or even years until it reaches your price target.

You can buy Bitcoin or your favorite cryptocurrency at regular intervals if you're planning to HODL. This term is associated with buying a small amount of Bitcoins weekly or monthly. For example, let's say you have $1,000 to buy over time.

In this case, you might purchase $30 in Bitcoin each week or $50 worth every month. By staggering your buys like this rather than putting it all at once, you minimize the likelihood of price fluctuations having as much impact on the price per coin. This strategy prefers to buy Bitcoin over trade Bitcoin.

The upside to hodling

Minimal effort

Hodling requires initial research into the cryptocurrency you wish to buy in (very important ans crucial to do your own research). From there establish your budget and strategy.

Minimal stress

The crypto market is known for its significant swings in value. Thankfully with hodling there is no need to time the market for entry and exit positions or watch the chart all of the time.

Minimal trading fees

Save money on trading fees by conducting on a few transactions, versus the many you will need to do when day trading. Some countries won't even charge tax on your crypto gains after a certain period of time (but be sure to check this in your area).

The downside of hodling

Need patience

As hodling is a long-term strategy approach it requires patience and mental endurance. If you decide to use the Hodling strategy you'll need to manage emotions during tough market fluctuations and might need to wait years before being able to cash in on any ROI (return on investment).

Funds are locked in

Because this is a long-term strategy, your funds would be inaccessible for an extended period of time. This might result in foregone opportunities to invest elsewhere in the crypto space or any other market.

However, this can be avoided by leaving your funds in a crypto interest account. Tap provides users access to yield-generating wallets that allow you to enjoy both the long-term price gains as well as the returns.

In Conclusion: hodling vs trading

If you're a novice cryptocurrency investor, proceed with caution. There is no right or wrong answer to which of these strategies is "superior" and you could always combine both methods to match your portfolio depending of your risk appetite. Always keep in mind that before making any decisions, always do your homework, research about the asset you wish to purchase and about diversifying your portfolio to reduce risk regardless of the strategy you pick.

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Crypto

Ash

Make money with crypto without making a trade

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There are plenty of reports of investors making huge gains in the crypto market over the years, however, there are plenty more ones on people who have lost money. While investing is designed to increase your personal wealth, many investors are often intimidated by the digital currency market due to its volatility and age. In this piece, we're going to run you through the various ways of making money from cryptocurrencies without making a single trade.

After the economies around the world were deeply affected by the Covid-19 pandemic, now is as good a time as any to regain control over your funds and use passive income opportunities as a tool to do so. Tap into the innovation available in the crypto space to pay off your mortgage, bond or leverage your pension and forget about fluctuating market prices.

Passive income 101

The least risky way in which to build your personal wealth is through passive income. Passive income involves generating money from investments that don't require any intervention. This includes activities such as earning dividends from stocks, automated sales through a business, monthly or annual rental from properties, etc.

Another avenue of passive income is earning interest on money in the bank. In this case, the bank will pay you a predetermined percentage of the funds stored in that account. Thankfully, the crypto space has caught up and currently has a number of programs that are offering crypto holders the same benefits, albeit with far greater interest rates. While the regulation surrounding these programs is still being structured, many reliable and trustworthy platforms are offering programs worth taking advantage of.

How to earn passive income with crypto

Below we explore several smart ways in which you can earn a passive income with crypto, all designed to grow your capital. These options are outside of the decentralized finance (DeFi) space so as to avoid any potential problems or scams, rather stick to reliable platforms and networks as outlined below.

Staking

As the crypto space has evolved, many platforms have shifted from the original Proof of Work consensus mechanism to a Proof of Stake one. PoW involves miners competing to solve a complex cryptographic puzzle in order to validate transactions on the network and earn the block reward.

PoS models are less energy-intensive and instead require validators on the network to stake a certain amount of the native cryptocurrency in order to validate the transactions and earn the reward. Anyone can get involved thanks to the likes of PoS platforms like Cardano, Polkadot, and Ethereum 2.0.

Stakers can delegate crypto to a validator and earn a portion of the payouts when the validator completes the process. Requiring very little technical knowledge and minimal capital (each platform is different), staking provides an easy opportunity for a cryptocurrency holder to earn passive income.

Stakes can also opt to be a validator, which requires a considerable amount of effort and technical information. With two options available when it comes to staking, one can either opt to be a validator or delegate coins to a validator. The former will require more capital and attention but yield higher returns, while the latter provides lower returns but ensures that the validators do all the work.

Mining‍

On the other side of the coin, there is mining. Mining is native to PoW networks and involves confirming transactions for a reward. Networks vary in terms of what computer resources one might need, although cheap electricity is essential as these machines typically require large amounts of power.

The world of mining has progressed in leaps and bounds since the early days of using CPUs to mine Bitcoin. Should one want to explore this path, we advise you do extensive research on the cost implications beforehand.

Lending

A method favoured by long term investors looking to earn interest on their already accumulated crypto assets, lending involves borrowing the funds to a platform in return for interest. These funds are typically locked away for a certain period of time in exchange for interest payments later on.

Peer-to-peer (P2P) lending platforms usually have a fixed or variable interest rate and will handle the logistics of the borrower and lender. These types of services are often found on platforms that offer margin trading.

Make money without engaging in any trades, with no betting on the outcome of the market. Passive income from cryptocurrencies can be done simply by storing your already accumulated digital currencies in an income-generating account. Experiences on various platforms will vary, however, in most cases the customer will deposit their funds into a specific account and earn interest in the same currency. Check the platform's publication for guidance if you need any assistance.

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What is the "Travel Rule"?

For transfers of Virtual Assets falling below the de minimis threshold, Virtual Asset Service Providers (VASPs) are required to gather:

Conversely, for transfers surpassing the de minimis threshold, VASPs are obligated to collect more extensive particulars, encompassing:

Implementation of the Travel Rule in the United Kingdom

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‍What does the travel rules means to me as user? ‍

‍Unlocking Compliance and Seamless Experiences: Tap's Proactive Approach to Upcoming Regulations‍

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Wrapping Up WBTC

Other Wrapped Bitcoin alternatives

How Can I Buy Wrapped Bitcoin (WBTC)?

What is a crypto scam?

The top 5 most common crypto scams

Fake crypto exchanges

Ponzi schemes

Fake investment schemes

Imitating a crypto exchange

Malware & ransomware

5 tips on how to avoid crypto scams

Easily avoided, comfortably secure

What is trading?‍

The pros of trading

The cons of trading

What is hodling?

The upside to hodling

The downside of hodling

In Conclusion: hodling vs trading

Passive income 101

How to earn passive income with crypto

Staking

Mining‍

Lending

Kickstart your financial journey