Stellar Lumens (XLM) Forum with for newcomers and contributor's rewarded Check here

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Digital Asset Custody Company (“DACC”) has announced that it can now provide custody support for Stellar Lumens (XLM), a cryptocurrency based on a blockchain devoted to transforming payment and currency exchange systems.

DACC is the first purpose-built custody solution for institutional investors in cryptocurrencies and other digital assets. The company now offers the ability to secure custody over 90 digital assets and ten blockchains for a range of institutions including registered investment advisors, hedge funds, private equity firms and token issuers.

Matthew Johnson, Co-Founder and Chief Product Officer for DACC said with a market cap in the billions of dollars, XLM has become one of the more widely-held cryptocurrency investments in today's market – necessitating a secure, trusted solution for institutions that require a custodian for regulatory or client due diligence purposes.

According to him they are excited to be one of the first custody providers to institutional investors to offer coverage for Stellar, and are looking forward to continually expanding our coverage capabilities in the months ahead.

DACC was founded specifically to serve the institutional investment market and was built on five core principles: security as a feature; innovation in custody and wallet technology; support for any digital asset or token; regulatory clarity and compliance with all applicable rules and regulations; and institutional-grade, white glove client service.

Accordingly, DACC's custody solution provides support for over 90 tokens and ten blockchains, the fastest egress from cold storage in the industry, and beyond enterprise-grade cyber and physical security, designed by a senior management team comprised of investment executives, hedge fund operations experts and government agency security experts.

Doug Schwenk, Chairman and Founder of DACC narrated that when they founded DACC, their first step was to speak with prospective clients who are either invested in digital assets, or are interested in doing so. Custody was and remains a priority, but security concerns and the need to adapt to a fast-evolving cryptocurrency market required a bespoke, custom-built solution.. He said adding XLM demonstrates their commitment to offering the widest coverage in the industrywithout sacrificing security or client service.


Read More Read More, Posted by: crytocure
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How To Create An Unforgettable Wallet Seed

As soon as you create a 12 or 24-word wallet recovery seed, you normally have to write it down. However, you should know that there are ways to actually memorize the sentences without having to write them down, which could be considerably safer for you in a long-term scenario.

This way is known as a “Memory Palace”. With some practice, you will never have to write down your password again and you will be considerably safer by using an unforgettable wallet seed. The idea comes from a book called “Moonwalking with Einstein: The Art and Science of Remembering Everything”, which was released in 2011 by Joshua Foer.

The book relates how “mental athletes” use techniques to improve their memory and can be able to memorize a deck of cards in under 30 seconds. The secret for making this feat, according to the book, is the construction of the “memory palace”, which is a visual technique that was already practiced by civilization as ancient as the Greeks and Romans.

It is a mnemonic method in which you create a location in your mind and store images there. The most common type of memory palace is about making a journey through a place that you know very well. You have to remember the order of the buildings, places, etc, for this technique to work well.

After that, you can use the technique to memorize long numbers and phrases. If Lu Chao was able to recite pi to 67,890 places, you can certainly be able to memorize a 24-word seed. Using this highly visual technique, you will be able to do it even if you are the type of person that generally faces some issues when you have to remember small things like where you have put your keys at home.

How To Create A Memory Palace?

Basically, you have to connect a place in your memory with the phrase or code that you want to remember. The book name, Moonwalking with Einstein, is a reference to one of the mental images created by the write of the book.
Let’s use an example of the street in which you lived as a child and the phrase: moon cat fight lake head gun man dog roof plane elephant.

You are walking home. It is night and you see the “moon”. As you cross the street, you pass a “cat”. As soon as you reach the sidewalk, you see a “fight”, so you cross the street again. Now, you see a house with a “lake” in front of it. Inside, you can only see the “head” of your neighbor Jack.

The neighbor of the other house, John, is polishing a “gun” on his backyard and there is a “dog” in front of him. You see a strange “man” crossing and the street and then, when you pass the next house, you look over its “roof” and see a “plane”. Finally, you get home. There is an “elephant” inside of your house.

If you repeat this story several times and remember the details of your street, it will be like a memory and you can use it to remember the seed word. It’s actually simple but it requires a lot of concentration and some time.

Should You Use The Memory Palace Technique?

You should note that there are very practical benefits from using this technique to memorize your keys without having to write them down. Even if you do not live in the type of place in which you might have to flee at a moment’s notice like war zones, you never know when a fire or a flood might hit your house. If this happens, you might lose your keys.

Also, even using bank vaults is not 100% safe. Keeping a copy of your seed can always be a problem for you, so you have to be really careful if you want to keep them and there is obviously no better place for that than your own head.

Read More Read More, Posted by: crytocure
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Cryptocurrency has become worldwide famous among the people. Many believe that investing in cryptocurrency will generate more revenue this year.

Many people have internet access today, which is one of the reasons why investing in cryptocurrency is increasing day by day.

Virtual Coins

Virtual coins are known as a dispersing electronic form of currency that does not have any presence in physical form. Virtual coins are a specific form of digital currency/money that uses an encryption method to make the transaction secure and control forming new units.

Cryptocurrency such as digitals coins has caused financial chaos and is a collective agreement of each computer on a virtual coin network. Each and every transaction done by using cryptocurrency technology should be 100 percent secure and private through the digital key.

Below are the options available if you want to own a virtual coin:
  • All virtual coins are made through complex mathematical equations that are inspected by many users, known as ‘Miners.’ A miner is involved in investing lots of money in computers. The value might be larger than the value of the virtual coins being earned.

  • Another option is simply buying a virtual coin from someone else, generally through a cryptocurrency exchange platform.
How Cryptocurrency Works

Cryptocurrency is a virtual currency that can be bought or earned. These virtual currencies are issued and managed as per the predefined methods that are very specific to every cryptocurrency. New virtual coins are issued via a mining algorithm, which is provided by a miner. In exchange for their service, miners are given the awards of virtual currency units. Hence, the individual who wishes to own the virtual coin without taking part in the activities called mining should buy them.

Cryptocurrency Keys

There are two types of cryptocurrency keys:

Public Key: This is the confirmation of existence and unique identity of the virtual currency units.

Private Key: This is like a secret code that is recorded in a digitized wallet. People can purchase goods and services and can even invest or transfer the digital currency. However, to do so, they need to set up a digital wallet by using distinct software that is specially designed for a cryptocurrency trading platform. These transactions are pseudo-unknown thanks to the private key.

The person who owns a virtual currency can check their currency units by using the private key while making a payment. The process goes on, and transactions are submitted to a network of miners that confirms the ownership of that virtual currency unit and validates it then passes it to the new owner.

Cryptocurrency—Functioning as Money

Cryptocurrencies may one day be able to function as regular money.
  • Recognition of cryptocurrencies is very limited, but with greater recognition, the greater the chance of cryptocurrencies functioning as money.

  • Two different parties might go through the transactions and another medium.

  • Digital currencies are a very valuable asset. They are kept under a digital wallet system; however, this system can have high maintenance costs and can be prone to hacks.
Buying Your First Virtual Coin

Buying virtual coins can be a confusing process for many, but more and more people these days are investing in cryptocurrency. Cryptocurrency exchanges and trading platforms are built to create smart contracts that run in a programmable manner, and there is no space for fraud, censorship, or any kind of third-party interference.

Once you’ve created an account on your chosen trading platform, the payment method options can be added, including debit cards, credit cards, etc.

Benefits of Cryptocurrency

Below are the main advantages of virtual currency:
  1. It is similar to precious metals and provides protection against inflation.

  2. It gives reliable means of exchange that are attractive among the people.

  3. Virtual currency transactions cost less compared to other traditional electronic transactions.

  4. Transactions are often free or come with low fees.

  5. The location of sender and recipient does not matter.
The Bottom Line!

Virtual coins are leading the pack of cryptocurrency with due respect of market capitalization, popularity, and user base. Investing in cryptocurrency is becoming more popular day by day, and many virtual currencies are now used for enterprise solutions.
Cryptocurrencies can act as a valuable asset and are becoming an accepted payment method worldwide.

by Jitendra Pandit

Read More Read More, Posted by: crytocure
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What Is Cryptocurrency? Everything You Need to Know
Cryptocurrencies like Bitcoin aren't actual physical coins, but they've become a financial phenomenon in their own right. Here is your comprehensive guide for understanding cryptocurrency.

Wondering if it's the right time to break into the cryptocurrency market? That makes sense, especially since there never seems to be a clearly perfect moment.

The journey cryptocurrency owners, especially ones who have been there since the beginning, have been incredibly rocky. Look at Bitcoin. It stagnated as an almost worthless investment before skyrocketing to a price of $20,000 in December of 2017. It has fallen off significantly since, but a statement was made. Cryptocurrencies were a joke just a few years ago; now, former President Bill Clinton is set to be keynote speaker at the Swell conference created by Ripple.

The notion of cryptocurrency has intrigued some and turned others off, and the concept has likely baffled even more people. Some think it's the wave of the future while others dismiss it as an online fad. There's a group who believes cryptocurrency and the technology behind it can change the world for the better; there are others who see it as a dangerous trend that wastes energy.

But if you're just looking to get into the cryptocurrency game, before you understand why all of that is, you need to know what it is at all.

Cryptocurrency Definition

Instead of a tangible piece of currency you can take with you, a cryptocurrency is a digital asset that can be exchanged. The "crypto" part stems from the use of cryptography for security and verification purposes during transactions.

In using cryptocurrency for an exchange instead of fiat currency, crypto owners don't have to rely on banks to facilitate transactions, and can successfully avoid the fees that come with using financial institutions.

Generally, cryptocurrency transactions are processed and completed via a blockchain network. Blockchains are designed to be decentralized, and so every computer connected to the network must successfully confirm the transaction before it's able to be processed. Ideally this creates a safer transaction for everyone involved. It can also lead to you waiting awhile; one big complaint about Bitcoin is how long it can take for a transaction to go through.

Cryptocurrency transactions are put into a "block," and the computers in the network get to work solving a complex mathematical problem. Once a computer solves it, the solution is shown to the others on the network, and if the whole network is in agreement that this solution is correct, that block is added to the chain and the transaction is completed. Multiple transactions in one block makes it harder to edit a single transaction; the network is constantly re-confirming the blockchain on its way to the latest block and will notice should a suspicious edit be made to one transaction in a block.

Because cryptocurrencies must be mined, there is a finite amount of them that can exist. For example, there are 21 million bitcoins (BTC).

Blockchain is a big part of what has made cryptocurrency a household name, and its versatility has led to the creation of many cryptocurrencies that are meant to disrupt industries besides banks. The decentralized nature of the network is seen as safer, and businesses - especially those with valuable assets - are interested. Some companies have merely dipped their toes in the blockchain water. Other companies, like Overstock, have completely overhauled their business model to incorporate it.

Cryptocurrency vs. Banks

There are banks interested in what blockchain can do for them, but cryptocurrencies like Bitcoin were developed expressly to avoid the use of banks altogether. Fans and developers of crypto like the idea of a decentralized network that does not require the need of any other parties to process a transaction - and as a third-party with a centralized network, a bank is not where cryptocurrency owners generally want to go with their stash.

The History of Cryptocurrency

Before Bitcoin, there were a few attempts at digital currencies with similar ambitions as Bitcoin. But they were unable to reach the same heights of popularity. Both "B-money" and "Bit Gold" were prior cryptocurrency concepts that incorporated the solution of mathematical problems into the hashing of a blockchain. Bit Gold's proposal, written by Nick Szabo, also involved decentralization.

The first iteration of what has since become cryptocurrency, however, is Bitcoin. And that story begins in 2009, when the entity known as Satoshi Nakamoto created and released Bitcoin into the world. Nakamoto's true identity is unknown; some believe it is one person, others believe it is a group. That same year, Bitcoin software was made public, allowing people to mine bitcoins and creating the first Bitcoin blockchain.

A cryptocurrency to be mined, Bitcoin could easily be seen as a novelty in those early days. It established itself as something that could be used as actual currency for the first time in 2010, when someone successfully used 10,000 BTC to buy two pizzas. As of this writing, 10,000 BTC are currently worth more than $68 million.

The increase in Bitcoin's value was slow, but as the cryptocurrency gained a passionate following, others began to pop up as well in the hopes of chasing the crypto/blockchain trend, known as altcoins. Litecoin was released in 2011; Dogecoin, a joke cryptocurrency based on a meme, was released in 2013 and currently has a market cap of more than $289 million.

Bitcoin became more well-known every year, but the height of the price was limited until a surge in late 2017. It was the most volatile price year for a currency with a history of volatility; 1 BTC was worth under $1,000 dollars in mid-January but by late December had reached nearly $20,000 in value. It has, of course, fallen significantly since that height.

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Where Can I Find Cryptocurrency?

There are a few different methods of acquiring a cryptocurrency, if you're still interested in getting some. A few of the different places you will be able to find cryptos include:
  • Cryptocurrency software

  • Cryptocurrency exchanges

  • Cryptocurrency P2P (peer-to-peer exchanges)

  • Cryptocurrency ATMs
Which one you use will depend on a number of factors. Are you able to buy your preferred cryptocurrency with fiat currency, or will you need to exchange other cryptos for it? How much time and money do you have, and how much energy are you willing to use?

First, though, you'll need to decide if you want to acquire cryptocurrency by mining it or by purchasing it.

How to Mine Cryptocurrency

Cryptocurrency mining is for the most avowed crypto-enthusiast. It's time-consuming, expensive and takes up extreme amounts of energy - some say a worryingly large amount of energy, in fact.

So if you're looking to dive into cryptocurrency mining, keep your expectations realistic and understand that there's a large chance it's a losing effort. The costs of mining hardware and software, which are always updating and adapting, add up. And the aforementioned energy consumption required for mining is bound to do some real damage to your power bill.

Miners will spend a lot of their time debating between powerful options and less costly options. Mining hardware such as ASIC miners offer power, but a great graphics processing unit (GPU) for your computer can also be used to mine cryptocurrency at less of a cost.

What keeps people coming, though, is the knowledge that a lucky few days may help recoup some losses with newfound cryptocurrency. The computer will continually mine for cryptocurrency by solving the previously mentioned mathematical equations. Should your computer solve the proof-of-work system and successfully hash a block to the chain, you are rewarded with cryptocurrency.

With so many people mining out there, one computer won't find much. So many people join mining pools to combine their computing power with others around the world. When one computer successfully mines, the reward is shared throughout the pool.

How to Buy Cryptocurrency

Mining is expensive and uses an absurd amount of resources, so it's understandable if you'd want another way to get cryptocurrency. Luckily you can now purchase it in a variety of manners.

The most popular and common way to buy cryptocurrency is via a cryptocurrency exchange. An exchange is a platform that allows you to trade for or purchase a cryptocurrency. Some allow you to use fiat currency like USD to buy, but for others you may need to already own some cryptocurrencies like BTC that you can exchange for another.

Some exchanges exist as platforms simply to trade - ironically, these exchanges are centralized. In these cases, the exchange offers the convenience of simply buying or selling cryptocurrency and simply takes a fee. Other exchanges, peer-to-peer ones, offer the ability to put you in contact directly with the trade you are buying from. Do research not just to see what exchanges offer what, but what their reputations are; a p2p exchange with a seedy reputation may be a one-way ticket to getting scammed.

To buy Bitcoin or other cryptocurrencies on an exchange is generally a fairly simple process. Exchanges like Coinbase or Coinmama allow you to purchase them with your credit or debit card.

One way of acquiring cryptocurrency that has grown? An ATM. Bitcoin ATMs have popped up around several major cities where you can, in an instant, get BTC in exchange for cash.

What is a Cryptocurrency Wallet?

Regardless of your method for buying cryptocurrency, you will need a wallet in order to obtain it. A cryptocurrency wallet is a public key and a private key. These digital keys confirm that it is you who is purchasing the cryptocurrency and links you to the blockchain.

There are several types of cryptocurrency wallets to consider, though, whether those wallets support your desired crypto will be a large factor. Among the safest are hardware wallets and paper wallets. Hardware wallets can connect to a computer so you can purchase cryptocurrencies, and then be stored offline. Paper wallets are literally just your public and private keys on a piece of paper, meaning they don't connect online at all.
Hardware wallets can be expensive, though. Software wallets don't come with the same costs, but run into more security risks, like getting hacked or a computer crash. Still, a reputable software wallet running on a computer with effective anti-virus and anti-malware protection should be able to safely store your cryptocurrency. Often, software and online wallets also have a mobile app available for iOS and Android.

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What is Cryptocurrency Used For?

What exactly can cryptocurrency do once you have it? It's a debate that has raged on since Bitcoin first burst onto the scene. "Currency" is in the name, and yet it took a year for anyone to make a single purchase with it. What kind of "cryptocurrency" is limited in its ability to be actually used as currency?

The number of things one can purchase with cryptocurrency has grown, but it is also not the only way one can use it. Investing is a popular tool for cryptocurrency lovers now as well.

How to Invest in Cryptocurrency

Investing in cryptocurrency is arguably easier than spending it. What you do is buy some cryptocurrency. Then you... keep it. That's it.

The volatility inherent in cryptocurrency, an intangible entity that still has a lot of mystery to it, has made it an intriguing investment for those who want a risk in their portfolio. And what says risk more than buying something that hit nearly $20,000 in value only to erode to below half of that the next year?

Cryptocurrency investments, if you're truly passionate that it will work out, can be extremely long term. Think of someone who purchased bitcoins in the beginning of 2011, when their value was below a dollar, and how they must have felt if they still had them in December 2017. They weathered quite a few storms in between before it was worth it, and that sudden spike was far from certain.

Then again, think of someone who bought some bitcoins around the time it spiked, only to watch its value continually decrease throughout the next year. Cryptocurrency investments are a major risk, and those looking to do it should give the idea the full thought it requires.

Because of this, many look to try other methods of investing in cryptocurrency. Most often, that can be done via investing in companies that work on blockchain-related technology. Nvidia (NVDA - Get Report) and AMD (AMD - Get Report) each create powerful GPUs that many use to help mine cryptocurrency, and their efforts to keep up with the power necessary for mining has made Nvidia in particular a big stock in 2018. A company like Overstock (OSTK - Get Report) , which accepts Bitcoin and has developed its own blockchain, is also a popular crpyto-adjacent investment choice.

Can You Buy Things With Cryptocurrency?
Bitcoin as a currency has come a long way since the days of someone assuming 10,000 BTC would be sufficient for 2 pizzas, even if it's nowhere near the mainstream currency its owners want it to be. Several different retail and online outlets have made room for those looking to use cryptocurrency for purchases - at least, the cryptocurrencies made with the intention of being used as payment.

The aforementioned Overstock, as well as electronics outlet Newegg, accepts Bitcoin payments for the various items available for purchase, and travel site Expedia allow users to use BTC for certain hotel bookings. There is also a pizza site specifically designed for buying pizza with cryptocurrency called Websites are able to do this with the help of businesses like ShapeShift, a crypto-trading platform that helps PizzaForCoins accept over 50 different cryptocurrencies as payment.

Online platforms are inherently easier for accepting cryptocurrency, but some stores in the outside world have attempted crypto purchases, including some KFCs and Subways around the world. And Starbucks' latest partnership with Intercontinental Exchange Inc., which recently launched a cryptocurrency integration system called Bakkt, has people wondering if the ability to buy Starbucks with bitcoins is right around the corner.

What Are the Most Popular Cryptocurrencies?

With all the risks mentioned about Bitcoin, it would be understandable if you perhaps did not want to get involved with it. If you're still interested in cryptocurrency, however, what are other popular ones you may look into instead?

Here are some of the more notable altcoins on the market - both in terms of notoriety and market cap.

Ethereum. Ethereum is currently second only to Bitcoin in terms of market cap. What makes Ethereum (and its specific cryptocurrency Ether) stand out from Bitcoin is that instead of working as a currency and disruption for banking, Ethereum attempts to disrupt online data storage. The blockchain on Ethereum is popular for storing smart contracts.

Ripple. In stark contrast to Bitcoin's intention to be separate from banking, Rippleand its XRP currency attempt to help financial institutions. XRP's strength as a currency is its ability to be used in the middle of a transaction between two different fiat currencies, minimizing liquidity. Ripple is not mined, and the 100 billion XRP created simply exist. Ripple also promotes itself as having a significantly faster transaction speed than Bitcoin.

Litecoin. Litecoin has also frequently flaunted its transaction speed in comparison to Bitcoin, and as a result is seen by some cryptocurrency fans as another potential altcoin that can become a legitimate currency. Helen's Pizza, a restaurant in Jersey City, NJ that accepts Bitcoin payments, also recently announced it would accept Litecoin as well.

Zcash. Zcash is also meant to be used as currency, but for private transactions. Blockchain transactions for cryptocurrency are usually visible on a public ledger, but Zcash allows businesses and other entities making transactions to selectively show their data on the ledger while hiding certain details.

Can Cryptocurrency Be Taxed?

Yes, the United States Internal Revenue Service says that virtual currency transactions are taxable.

Cryptocurrency you are holding onto as a capital asset is treated as property; as such, buying some crypto and then merely holding it and not doing anything means it can be treated as a stock or a bond and not necessarily reported. If you sell some or exchange some to buy something, though, you will need to report that.

If you are paid via cryptocurrency, that is taxed as income and must be incorporated into your income on your W-2. Employers paying in crypto must also make sure it is in their W-2, and keep spotless records of what the cryptocurrency was worth in USD on the day the transaction was made.

If you're a crypto miner and successfully mine coins, the IRS claims you will need to report that on your W-2 as well as part of your gross income. Like with cryptocurrency payments, you should keep records of what your coin rewards were worth when you received them.

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Cryptocurrency Controversies

Though cryptocurrency has found its way into mainstream discussion, major skepticism remains. Many worry that crypto, Bitcoin in particular, will turn out to be a bubble that will soon burst.

In addition, Bitcoin has seen its fair share of scams. Blockchain and cryptocurrency-related companies will often have an initial coin offering (ICO) instead of an IPO, requesting cryptocurrency in exchange for your company's cryptocurrency in order to help the value. However, this is extremely risky, and fake ones are common.

Perhaps the most controversial element of cryptocurrency, however, is the energy. The proof-of-work process needed to mine bitcoins consumes a concerning amount of electricity, and the concern has grown as more and more people have taken up mining. This is much bigger than power bills; according to Ars Technica, the annual rate of energy consumption from Bitcoin is the same as the rate for all of Denmark. This is a major environmental issue.

Some cryptocurrencies have instead attempted to use a proof-of-stake method, where nodes are validated in deterministic fashion, to help with this energy crisis. Instead of mining a block, the creator of the block is determined by how much wealth they have within the cryptocurrency and the stake they put in. There is no reward, so they instead receive the transaction fee. Most importantly, this doesn't require any expensive equipment taking up power. However, the overwhelming majority of cryptocurrencies still use proof-of-work.

Is Cryptocurrency Safe?

As mentioned, there are scams to be wary of. Cryptocurrency is still a relatively new thing that many frequently misunderstand, and it's easy to rip someone off.

So can cryptocurrency be safe? If you're careful, cautious and make the right choices, yes. Doing cold storage (keeping your wallet offline via a paper wallet or unplugged hardware wallet) can keep your cryptocurrency offline. Keep your computer updated and protected. Do as much research as you possibly can before deciding on a cryptocurrency and the exchange you purchase it from.
Can Cryptocurrency Be Hacked?

Yes. It's something cryptocurrency owners need to be wary of, and why so many choose to store them offline as soon as they purchase any digital coins.

The most notable form of cryptocurrency hacks is hacking a cryptocurrency exchange. Once a bitcoin is gone, it's gone forever. That exchange no longer has it, and cannot recover it. This year, South Korean exchange Coinrail was hackedand may have lost as much as $40 million worth of coins.
It's hardly the first instance of a hacked exchange. Japanese exchange Coincheck lost over $500 million in a hack. And the Mt. Gox exchange went through multiple hacks that cost them hundreds of millions of dollars in cryptocurrency; eventually, they had to shut down.

by Steve Fiorillo

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What's your favorite wallet?
Do you use paper wallet?
Do you use web based wallet?

Read More Read More, Posted by: demidieu21
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DACC support extended to more than 90 tokens and ten blockchains, including payment-oriented XLM
Digital Asset Custody Company ("DACC"), the first purpose-built custody solution for institutional investors in cryptocurrencies and other digital assets, today announced that it can now provide custody support for Stellar Lumens (XLM), a cryptocurrency based on a blockchain devoted to transforming payment and currency exchange systems. DACC now offers the ability to securely custody over 90 digital assets and ten blockchains for a range of institutions including registered investment advisors, hedge funds, private equity firms and token issuers.

"With a market cap in the billions of dollars, XLM has become one of the more widely-held cryptocurrency investments in today's market - necessitating a secure, trusted solution for institutions that require a custodian for regulatory or client due diligence purposes," said Matthew Johnson, Co-Founder and Chief Product Officer for DACC. "We're excited to be one of the first custody providers to institutional investors to offer coverage for Stellar, and are looking forward to continually expanding our coverage capabilities in the months ahead."

DACC was founded specifically to serve the institutional investment market and was built on five core principles: security as a feature; innovation in custody and wallet technology; support for any digital asset or token; regulatory clarity and compliance with all applicable rules and regulations; and institutional-grade, white glove client service. Accordingly, DACC's custody solution provides support for over 90 tokens and ten blockchains, the fastest egress from cold storage in the industry, and beyond enterprise-grade cyber and physical security, designed by a senior management team comprised of investment executives, hedge fund operations experts and government agency security experts.

"When we founded DACC, our first step was to speak with prospective clients who are either invested in digital assets, or are interested in doing so. Custody was and remains a priority, but security concerns and the need to adapt to a fast-evolving cryptocurrency market required a bespoke, custom-built solution," remarked Doug Schwenk, Chairman and Founder of DACC. 

"Adding XLM demonstrates our commitment to offering the widest coverage in the industry without sacrificing security or client service."

About Digital Asset Custody Company

Digital Asset Custody Company, or DACC, is a custody solution purpose-built for institutional and alternative managers invested in the cryptocurrency and token space. Our custody offering was built from the ground-up to secure digital assets on behalf of institutional clients. With its proprietary technology, DACC is able to custody over 90 cryptocurrencies and ten blockchains, rapidly and securely egress digital assets from air-gapped cold storage, and provide clients with unparalleled, 24/7 physical and digital security to safeguard their assets. Our team of former investment executives, hedge fund operations experts and government agency information security officers provides extensive technology, investing and security experience, and has built the systems used every day by major asset managers.


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Stellar Closes In On Cryptocurrency Fifth Place

The cryptocurrency markets are some of the most competitive in the entire world. Cryptocurrency companies seem to crop up nearly every day, and investors are quick to jump onto the bandwagon with hopes of quick profit and world-changing technologies. This has created a tough competition for the top spots, with the highest-earning and quickest-profiting cryptocurrencies gunning for a place at the top of the ever-growing dogpile.

XLM is one of the most up-and-coming cryptocurrencies of 2018. The Stellar coin (XLM) has a significant following in countries all over the world, and the Initial Coin Offering (ICO) fostered a massive amount of funding for the startup company Stellar. For a while, the organization’s coin has been trading at a moderate rate, retaining a spot in the top ten as the sixth most popular cryptocurrency—at least in terms of market cap.

Though market cap is not necessarily the only effective metric for measuring the success of a given currency, it is a good way to gauge the general interest associated with any particular cryptocurrency or blockchain startup company. In this respect, Stellar has been doing spectacularly. The coin recently jumped ahead of Litecoin, edging them out to gain the sixth place spot on July 19th of this year.

But the company didn’t stop there. According to experts, XLM is slowly making its way to the coveted fifth spot, attempting to slide in ahead of EOS, which is currently placed at the bottom of the top five list.

Coinbase Rumors

One factor that might drive the currency past the market cap for EOS is the rumors regarding a Coinbase listing. According to the world’s most popular exchange Coinbase on July 13th, the company is considering the listing of five new assets on their large platform. It is likely that these five coins, including four coins outside the top seven and Stellar, will materialize.

When this happens, there most likely will be an incredible price rise for XLM. Take, for a historical example, the false rumors that Coinbase might list Ripple (XRP). When the rumor cropped up last year, the price of Ripple skyrocketed to its all-time high of over USD $3.00 per unit. Though the prices eventually fell once again following the dispelling of the rumor by Coinbase, the mere mention of a Coinbase listing had a dramatic and positive effect on the price of the cryptocurrency.

If XLM were to be listed on Coinbase, there is little doubt that its price will shoot up significantly. EOS was not among the companies listed on the Coinbase announcement last month, meaning that they will not be able to witness similar price hikes following the listing of new cryptos on the Coinbase exchange.

Stellar-Facebook Partnership

Stellar is also rumored to have created a new partnership with the biggest social media giant in the world, Facebook. Though Facebook has denied the rumor that such a partnership is in the works, many within the cryptocurrency community continue to speculate that the two companies might begin working together in the near future.

If true, the rumor would most definitely help XLM to jump over EOS to secure a spot in the top five cryptocurrencies for market cap.

IBM Partnership

This partnership is not merely a rumor. IBM has been working with the Stellarfoundation for a long time, and the partnership has already won a five-year agreement for blockchain technology development, a developmental process which is reportedly backed by the entirety of the Australian government.

Stellar (XLM) is a popular coin with popularity that continues to rise. With the significant amount of interest being generated by a variety of rumors and new partnerships, it is likely that the Stellar plan to take the fifth spot from EOS might be successful.


Read More Read More, Posted by: crytocure
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According to Cryptofundresearch, cryptocurrency funds have been increasing since cryptocurrencies gained significant popularity in 2017. With Bitcoin’s rising prices and increased general awareness of the cryptocurrency industry, over 100 cryptocurrency funds emerged in 2017 alone. These cryptocurrency funds accounted for over 14 percent of the launch of new hedge funds. While this appears as a small number, it’s important to note that only 0.1 percent of cryptocurrency funds emerged the years earlier.

The Most Popular Type of Cryptocurrency Fund

In 2017, when it came down to the top performing hedge funds, these were also cryptocurrency funds. This trend will likely continue to increase in 2018 as nearly 150 cryptocurrency funds are launching this year alone.

While the majority of cryptocurrency and blockchain investment funds are hedge funds, there is also a large number that operate as venture capital and private equity funds. The venture capital firms are quickly venturing into the blockchain sector with some even offering blockchain-exclusive branches.

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2017: A Breakout Year for Cryptocurrency Funds

2017 was a breakout year for the cryptocurrency industry. Over 150 hedge funds and venture capital funds launched in 2017, Thus tripling the number that emerged in 2016. While it’s uncertain how many cryptocurrency funds will emerge in 2018, the report indicates that hedge funds will continue to add cryptocurrencies to their portfolio and the number will continue to increase as the industry grows over time.

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Majority of Cryptocurrency Investment Funds Are Less Than $10 Million

Although the number of cryptocurrency funds has increased, over fifty percent of cryptocurrency funds under management are tiny and have less than $10 million in assets under management (AUM). There are, however, a few funds who cross the $100 threshold including Polychain CapitalGalaxy Digital, MetaStable Capital, Arrington XRP, and the Logos Fund.

Digital assets should, however, increase in size in 2018 due to the increasing public awareness and appreciation of digital assets. Cryptocurrency funds are also relatively small when combined; the combination of all cryptocurrency funds is currently less than ten percent compared to traditional hedge fund managers.

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Cryptocurrency AUM Proliferating in 2017

When it comes to AUM, Cryptofundreserach noted that the overall trajectory of the industry is healthy and growth is rapid. The launch of new cryptocurrency funds and a greater appreciation for digital currencies has also helped boost the cryptocurrency industry’s value and market capitalization. These two factors were highly prevalent in the later months of 2017 when bitcoin’s price increased to almost $20,000 in value. As cryptocurrency prices declined, the number of total cryptocurrency assets contracted, especially as prices plummeted at the beginning of 2018.

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Cryptocurrency and Blockchain Investment Funds Are Relatively Small

Although the number of cryptocurrency and blockchain funds are growing, these firms are less than five members of staff. Others have a founding team with one or two additional employees, with a vast majority employing around four to ten employees.

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Cryptocurrency Funds by Country

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The greater portion of crypto-specific investment firms is currently located in the United States. There are a certain number of funds also located in the United Kingdom, Singapore, Germany, Canada, China, and Singapore. When it comes to favorite cities for cryptocurrency funds, these cities are ones with a dominant and global venture capital presence.

Examples include New York, London, Singapore, Hong Kong, Zurich, and Chicago. Regarding the U.S., California has the highest number of cryptocurrency funds compared to other states. There within, there is a concentration in San Francisco and Silicon Valley. A vast majority of American cryptocurrency funds are however not registered with the SEC.

by Cindy Huynh

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One aspect of the cryptocurrency market aside volatility, which has been under immense criticisms over years is the hacking of crypto exchanges by cybercriminals. Criminals also want a piece of the crypto action and therefore pounce on any little chance they get to screw over crypto investors.

The crypto market has been plagued with series of hacks, targeting investor’s assets in many exchanges. The biggest and most used crypto exchanges in the market have all been hit with hacks and phishing attacks. More than $1 billion worth of cryptocurrencies have been stolen by criminals from numerous crypto exchanges this year alone, and we are just in the eight months.

Crypto’s amazing rise and the journey have given birth to new trends and now the latest one gaining grounds in the crypto market is Cryptocurrency insurance. The ever growing rate of fraudtheft, and hacks in the crypto world has been the basis pushing this trend further up high, in efforts to try and curb the situation, or better still, save crypto investors from losing all their assets to thieves.  

Insurance in the world of finance isn’t something new and it has now arrived in the crypto world to which many companies are getting on board. Offering and taking insurance on cryptocurrency assets might be the sweetest thing crypto investors want to hear at the moment. Who wouldn’t want to protect him or herself from criminals taking away their investments?

Crypto insurance comes with its many importance just as the many come ups in the crypto market. Insurance companies and firms are ready to offer protection against hack and thefts for just little fees. With crypto insurance in place, users with huge amounts of cryptocurrency stored on exchanges might be free of the headache hacking and theft threats provide.

Many crypto investors and firms are poised for business, with the benefit each party stands to enjoy. Many firms have tabled insurance packages covering employee theft, unauthorized access and even day to day mistakes.

Mitsui Sumitomo Insurance’s package even covers in everything, with the packages to offer, beginning at $88,550, up to $8,850,000. Many other firms too are underway with crypto insurance. Chubb, XL Catlin, Mitsui Sumitomo Insurance, Great American Insurance Group and many others.

This emerging trend in the crypto world looks to be welcomed with opened arms even though the industry comes with substantial risks associated with trading. Many companies are already scamming investors and stealing all their money and Insurance companies must begin to solve those problems or might end up offering insurance to scammers. Many trends born off cryptos have flourished and this can be no different.


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A breakdown of the way Bitcoin and Tax are linked, and how to approach the issues posed by the IRS.
Ever since Bitcoin appeared on the radar of investors, the issue of if and how to tax revenues from Bitcoin investments arose. Although most first-time investors don’t give a second thought to taxation, it is a topic that should be approached with the seriousness it deserves.

Cryptocurrencies themselves are for the most part decentralized and barely regulated. Revenues from investing in cryptocurrency, however, are still subject to laws and regulations of your home country. Before getting into trouble with your local taxman, familiarize yourself with some of the ins and outs of what to do regarding Bitcoin and taxation.

Which Kind of Trading Account Is the Best Option for Me?

Ultimately, you need to remember that when it comes to taxation, it is your task to understand your responsibilities in tracking and reporting your earnings. However, since Bitcoin and other cryptocurrencies are still a relatively new investment vehicle, finding accurate information on how to treat your crypto investments is somewhat tricky. Familiarize yourself with the kinds of accounts on the market and which ones will ultimately serve your needs best.

Clarify for yourself what your goal with Bitcoin is. Are you looking to invest in Bitcoin for long-term gain? Do you want to actively use Bitcoin to purchase goods and services? Or are you most interested in Bitcoin mining? All of these activities are taxable, and the answers to these questions will guide you in the right direction. Once you know what you want to do with your Bitcoin, you can take the proper steps to avoid trouble with your tax office.

How Do I Report Bitcoin Earnings?

As mentioned before, how you need to report your Bitcoin revenues largely depends on how you earned them.
For example, if you’re reporting Bitcoin earnings that you have made from buying and selling cryptocurrency, you will be making prominent usage of schedule D, which is found as an attachment to form 1040. The next step of the process, however, will depend on how long you have had the cryptocurrency, which is why you will need to keep records of when you originally purchased your Bitcoin.

If you purchased and held cryptocurrency for less than a year, but kept it for investment, then you would need to report the cryptocurrency as ordinary income tax as well as state income tax. The same would apply if you received Bitcoin in return for the provision of particular goods or services. However, if you held Bitcoin for over a year, then matters become more complicated as you would need to pay the capital gains tax as well as an additional 3.8 percent if you fall into the top three tax brackets.

If your account is held abroad, you will have to report it to the US treasury through the FinCEN form 114 as well as to the IRS using form 8938. This, however, only applies to US citizens with more than $10,000 worth of assets. Also, this is only necessary if the private keys to your wallets are held directly by the exchange in question.

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What’s the Best Way to Keep Track of my BTC Earnings?

Keeping track of your earnings in Bitcoin can be tricky since there is no centralized database for your transactions. While all Bitcoin transactions are clearly maintained on the blockchain ledger, unless you keep track of your specific transactions, you have no way of knowing which transaction on the ledger was yours. To avoid any possible trouble with the IRS your best bet would be to keep receipts of all the transactions you’ve ever conducted with Bitcoin.

If you’re exclusively using Coinbase for your Bitcoin transactions, then the site does provide you with records of your transactions. For users with a low transaction volume, getting access to these records can, however, prove difficult. Keep a watchful eye on your transaction history which automatically computes your profits and losses as well as giving you a helpful way of monitoring transactions. Keep in mind that exclusively trusting a third-party service with your record keeping can be dangerous. Be sure to make regular backups of your transaction history, or use more than one service to keep track.

If you’re on top of all your receipts and ensure that you maintain a record of every single transaction you make, your life will be much more comfortable. The IRS does offer some leeway regarding keeping track of the exact transaction values, but you will need to keep track of the approximate value of each movement. Maintaining spreadsheets and detailed data of your own can go a long way if you conduct numerous transactions via Bitcoin and want to avoid any issues with the IRS.

Do I Have to Pay Taxes on Currencies I’ve Earned as a Result of a BTC Fork (i.e. Bitcoin Cash)?

Even if a currency that you use does fork, like Bitcoin and Bitcoin Cash, you are still liable to pay taxes in this event. The new cryptocurrency created by the fork will be treated in the same manner as the currency from which it originated. In the eyes of the IRS, even “found money,” which is what a fork could be perceived as, still needs to be taxed.

Regardless of whether you purchased Bitcoin Cash or not, you would still have to pay taxes on it if you had obtained it via a fork. Given the complexity of cryptocurrency forks, there is, however, still a degree of speculation involved when talking about their tax implications. So be sure to inform yourself of new rules and regulations on the topic before declaring your taxes.

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Do I Have to Pay Taxes on Bitcoin That I’ve Mined?

This is an interesting one, given the fact that when you’ve mined Bitcoin, it would perhaps seem that by adding the Cryptocurrency into the ecosystem you may somehow bypass taxation. However, concerning IRS regulations, you must be aware that this is still a taxable process. Mining for Bitcoin and being unsuccessful with it, however, does not mean you have to pay taxes on the process. Instead, the implications for taxation stem from whether you have successfully been able to obtain money from the given transaction. Thus, the mining process would either be seen as a hobby or a form of self-employment.

To be aware of your status, the IRS does offer some helpful pointers to make you aware of the legal implications of what you’re doing. The IRS will look at the experience that you have with mining as well as how often you mine. The bigger your earnings, the more likely you are to be liable to pay tax. Remember that the value of the currency that you’re mining will need to be properly reflected on your tax returns and that underselling the value of your coins in any way would constitute tax fraud.

In reality, regardless of whether you’re income from mining is a hobby or a business, you’re still liable for taxation. In the case of the former, you’re able to label it as miscellaneous expenses while in the latter case you would need to properly indicate this on the form. Taxation on earnings from a hobby is significantly lower than the 15.3 percent you would need to pay if you were a commercial miner, but at the same time, you can also deduct smaller sums.

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The Comino crypto miner/heater

“I Bought a Product or Service Using Bitcoin. Are There Tax Implications?”

The short answer is yes. Since cryptocurrency is an asset, the IRS views your transaction like any other trade of an asset for another asset. If you hypothetically traded Bitcoin for a computer, the IRS would see this the same as you selling Bitcoin for cash for which you then bought a computer. This take on cryptocurrencies is quite similar to the way that the IRS deals with the stock market.

Trading Bitcoin for goods is thus the same as trading it for cash, and there is virtually no distinction as you would be liable to be taxed the same amount. The only way, in which this is different is if you were to donate Bitcoin to charity at which point the IRS does not require you to pay capital gains tax on the given transaction. This means that if you were planning on donating a significant amount of money at some point, doing so in Bitcoin can be an effective way of circumventing taxation.

Do I Have to Pay Taxes If I Never Converted My Earnings to Fiat?

In this scenario, you do not have to pay tax. The US government, in its taxation guidelines, chooses to view Bitcoin as a property. Thus, if you purchase Bitcoin and sit on it, you’re not liable to taxation. The moment you sell your Bitcoin for fiat currency (or any other coin), however, you have withdrawn your earnings from your crypto investment and are liable for taxation. However, this issue is not as simple as it sounds and does require some explanation.

If you purchase Bitcoin and save it for a prolonged period, seeing it rise in value, you become liable to the capital gains tax which is applied to long-term capital. As such, it is vital to keep track of the value of the Bitcoin you had when you originally bought it, and monitor its rise in value. The process is even more complicated if you conduct numerous transactions using cryptocurrency and continue to trade back and forth. As mentioned before, keeping good records can be the difference between whether you will have issues with the IRS or not.

Be aware that trading your Bitcoin for another coin is seen as trading an asset for another. It’s helpful to think of this in the same context as you would if you bought stock. Trading Facebook shares for Google shares is liable to taxation, and thus trading Bitcoin for Ether would have the same effect.

In the short term, however, if you never convert your earnings into fiat, taxation is not an issue. It is well worth remembering that legislation concerning Bitcoin is at best a little vague, and taxation is one of the areas where this is most glaringly obvious.

From a legal perspective, you need to be most diligent about keeping good records, as this is the best way to avoid potentially tricky situations. Also be aware of any changes in legislation and keep up to date with the latest crypto news. After all, this is an area which is likely to see future changes in laws and legislation so it would be wise to stay on top of this.

by Bogdan Kagan

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Vitalik Buterin's theoretical 99% fault tolerant model is a great time to dig up the Byzantine Generals.

Fault tolerance isn't new or unique to blockchain. It's found in almost everything in various forms, and generally refers to how many bad things you can have in a system before it stops working. On blockchains and other decentralised networks it generally refers to how many hostile or uncooperative nodes you can have before the network is compromised, and different types of blockchain will have different limits.

Bitcoin, for example, is generally assumed to be 51% fault tolerant (although some argue it's more like 25% or 33%), meaning the network will continue to be functional until at least 51% of bitcoin mining power is hostile or broken. This is the theory behind 51% attacks.

This presents a perfect opportunity for using the old Byzantine Generals problem to get an easy and non-technical understanding of crypto-technicals, and what 99% fault tolerance really means.

The Byzantine Generals

The mathematical principles behind fault tolerance in computing systems were illustrated in the 1982 Byzantine Generals paper (PDF), which has become a cornerstone work in cryptocurrency. It's also why the Ethereum network's current version is named Byzantium.

The paper uses the analogy of Byzantine generals trying to lay siege to an enemy city. They have the city surrounded, and need to collectively decide on the same plan of action (reach consensus) while communicating with all the other generals through messengers. These generals are equivalent to the different nodes in decentralised network, sending and receiving information to the others but unable to always trust it at face value.

That's because some of the Byzantine generals might be traitors, just like some of the nodes might be hostile or malfunctioning. The paper laid out a way for these generals to communicate with each other (how many other generals they need to talk to, etc) and found that the mighty Byzantine army was 33% fault tolerant. So, as long as at least two thirds of the generals are loyal they can all reach the same correct plan of action even with a minority of traitors muddying the waters and sending false information.

By the same token, 33% fault tolerance is kind of a "ground level" of assumed fault tolerance for some blockchains.

Proof of work and proof of stake as Byzantine Generals
Proof of stake (PoS) is an alternative to the proof of work (PoW) systems used by bitcoin and many others.

Proof of work in Byzantine General terms

In proof of work, only one general at a time sends information to all other generals, and its accuracy is determined by subsequent generals verifying the information when it's their turn to tell a story. Each re-telling is known as a "confirmation," and generals keep discovering and building on the truth by adding a little piece to the story one at a time. Generals compete for the right to tell the next part of the story through mining.
When it's someone turn to tell part of the story, they talk about the block they just mined, including:
  • Which block came before it. This shows that they're agreeing with the previous general's story.

  • Which transactions were on the block. Who is sending and receiving cryptocurrencies, and where transactions are going to and from.

  • The mining reward earned for that block. This is how much the general earned by giving their information. It's baked into the story, so if subsequent generals give a different version of events, the prior general is also determined to have been lying about earning a mining reward.
Because participating in the storytelling carries a cost (being a bitcoin miner is expensive) and generals are only rewarded if subsequent generals also confirm their version of events, all participants are motivated to continue telling the same story and be as honest as possible.

The vulnerability comes when the traitorous generals are able to get away with a lie and turn it into the new truth by having enough storytelling power (hashing power) to continually build on their own story and convince the honest generals that their information is the real truth. It's thought that traitorous generals will need to have at least 51% of the network's storytelling power to successfully pull off a lie.

The fundamental rule of traitorous generals is that they can't undo too much of the previous story. They can only undo it a little bit and take in a new direction.

For example, you generally can't lie about suddenly owning a million bitcoin because those coins need to come from somewhere and most of the prior story doesn't allow for it. Instead a traitorous general might sell a bunch of bitcoin and pocketing the money, then changing the story to one where they never actually sold the coins.

Now they have both the money and the bitcoin, and as far as the victim is concerned the cryptocurrency they purchased just vanished. Bitcoin Gold was recently hit with this kind of attack to the tune of $18 million.

In Byzantine General terms, a hard fork might be thought of as a group of generals knowingly making up their own story (eg. "bitcoin has an 8MB block size") without necessarily trying to fool anyone, and then repeating it among themselves until it becomes a separate truth and forms a separate network.

Proof of stake in Byzantine General terms

Proof of stake is a very different system. Here all generals are constantly talking and listening to each other, and repeating what they hear. One becomes a general by putting up funds as collateral in a specially designed cryptocurrency wallet.

The actual storyteller is chosen semi-randomly from the speakers, but generally the more cryptocurrency a general has in their staking wallet, the more storytelling power they have.

This chatty situation is more like the original Byzantine General problem, and it's also a 33% fault tolerant environment. So if more than a third of all generals - or more than a third of all staked wealth in the system - starts telling the same lie they might eventually convince everyone else.

Proof of stake brings new ways of lying, and other challenges like accounting for the fact that not all generals get messages at the same time and might start repeating outdated information.

It's more efficient than proof of work because the generals are theoretically just focused on actually telling the story (processing transactions), rather than wasting all their energy of simply winning the right to tell part of the story. But it's still highly experimental, and no one's entirely sure it's secure enough to prevent traitorous generals from taking over the story.

To solve this problem, different projects are looking at new ways of identifying, motivating and punishing generals. For example, a project might start grading and rewarding generals based on their seniority and storytelling history, or introducing reputation systems, to skew the story towards the version of events given by the most honest-seeming generals.

Ethereum's plan is to use a stick and carrot approach to continually reward honest generals and harshly punish those who try to propagate lies by "slashing" their stake. Slashing refers to confiscating a large portion of a general's stake to make attacks prohibitively expensive.

The initial slashing proposals called for a human-driven system where people could earn a finders fee, of a portion of the slashed amount, by discovering lying generals. But like any human-driven system it brings a lot of uncertainties.

Buterin's most recent model proposes an automated checking instead, which can theoretically make a proof of stake system 99% fault tolerant.


The suggestion is a system that automatically scans generals to look for ones who are misbehaving, as defined by them violating specific slashing conditions. This might be thought of as a little robot that roams the generals' camps and keeps an eye out for traitors.

The challenge is that the movements of the robot will also need to be part of the ongoing story the generals are telling. This means it's subject to two main problems:
  • Generals might unintentionally give outdated or conflicting descriptions of where the robot is and what it's doing - Buterin calls this the latency problem.
  • Lying generals might intentionally lie about where the robot is and what it's doing - Buterin calls this the threshold problem.

Solving these problems means making certain assumptions when programming and using the slashbot.

One assumption is around network latency, and how many generals are sending and receiving up-to-date information. The other assumption is, somewhat paradoxically, around how many generals are traitors. When programming the robot, one needs to program it for a certain fault tolerance (what percentage of generals are lying) threshold. The system is designed to be able to keep running effectively even if one of the programmed assumptions is incorrect. It's only when both are incorrect that the robot will break.

The good news and the bad news

The good news is that this robot can be successful even if one of the assumptions is incorrect. It will only break down if both are incorrect. Significantly, it can also operate in situations where more than half of all generals are traitors, theoretically achieving 99% (or higher) fault tolerance. It does this by sending out information on its findings as it goes, so all the generals are constantly chatting about what the robot's discovered while it works.

The catch is that for it to actually work, the two set assumptions need to mirror each other. So if you want to be on the safe side and assume a high-treachery environment, you must also assume potentially unrealistically low latency. This means it's hard for the robot to operate in a simultaneously high latency and highly-traitorous environment.

Buterin partially gets around this by suggesting a dynamic system that can adjust to exiting network conditions, and respond accordingly by undoing some of the incorrect parts of the story if it's discovered that a treacherous general has been getting away with lies.
You can look at any cryptocurrency through the Byzantine General problem to get a better understanding of the differences between protocols and how secure - or insecure - a network is, without getting too technical.

This can be applied to almost any cryptocurrency. Just look at how generals are chosen and how they tell their stories.
For example:
  • Bitcoin: Proof of work, as above.

  • Ethereum: Currently proof of work as above, but working on implementing proof of stake, also as above.

  • EOS: There are 21 generals who were promoted to the position in a sham election. They are able to lie with impunity and there are no mechanisms to stop collusion. If 15 of 21 generals tell the same lie, it becomes the truth. Network security runs on the honour system.

  • IOTA: Each separate IoT-connected device is a gossipy general. Each time a general wants to pass along information they're required to listen to two other randomly-selected generals' information. Eventually the generals will theoretically gossip themselves to consensus.

  • XRP: Anyone can become a general in XRP, as long as the other generals are willing to trust them. Most of the generals to date are banks and tech companies. Theoretically Ripple is just another general, but in practice it might have played an outsized role by cultivating the list of trusted generals that's become the de-facto standard.

by Andrew Munro

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If there's one thing that the cryptocurrency market has gained a reputation for, it's being exceptionally volatile, even when performing under the best of circumstances. But while it does pose a daunting prospect for new people interested in buying into the market, but in reality, it's made up of one of the most accessible and promising areas for investment.

One of the realities is that cryptocurrency investment and the conventional stock market have more in common than many would care to admit. And that truth is that, at the core of their premises, investors pay into either to get a strong return on investment.

With the cryptocurrency market becoming increasingly mainstream, both for the public and the investment market, it's reasonable to be curious about the ways in which a budding investor can get started, finding out what methods work for them and how to secure a strong return on investment.

Top 6 Crypto Trading Strategies For Skilled Investors

So here are a number of strategies that investors use depending on their style and goals pertaining to their investments.


Much unlike the formerly cruel practice, scalping is a method that investors can use in order to capitalize on fluctuations in the market. This is a method often used by traders in Foreign Exchange (Forex) as investors follow currency changes on very rapid basis.

Whenever someone makes trades based on the sudden changes in asset values, then they're commonly referred to as a ‘scalper'.

Unlike other strategies, Scalping is a very meticulous, yet fast-paced method of managing investments, they buy low, sell high and capitalize on any sudden changes. They essentially use the volatility of their asset against the market itself for profit.

To be a good scalper, you need to have a good enough understanding of the market, while maintaining a level head. This includes understanding the associated trends in the wider scope of international developments and how they'll affect your assets.  Any slip in acting on a fluctuation, or if you're too slow to buy/sell, it can result in serious losses.

Compared to other types of trader, a Scalper completes up to 100 trades a day, making it truly fast-paced and high-risk. Given that market volatility of cryptocurrencies is significantly higher than commodities or conventional stocks, this makes scalping high risk, but high reward.

Day Trading

Day Trading is similar in style to Scalping, the only difference is that while Scalping involves a large volume of trade activity in a day, Day Trading is considerably less. Essentially, Day Trading involves buying and selling various assets through the day, taking advantage of market fluctuations wherever possible.

In conducting this strategy, investors and traders make the most out of the small changes, cashing out and generating a profit on each. It's actually through effectively applying this method that some individuals have been able to quit their full time jobs and become a full time Day Trader.

In order to be a good one, a Day Trader needs to keep three things in mind with regards to the market. The first being the volatility of the asset they bought, the underlying liquidity of the market, and the trading volume. Once all of these factors have been considered, then the trader will consider the actions they should take.

The objective of the day trader is to turn a profit above and even double that they put into the asset initially. While this is a good method to use in certain stock markets, the cryptocurrency market only proves effective for this when it's undergoing good performance.

Effectively, the fact that day traders tend to sell instead of holding, a bearish market would mean that a day trader stands to lose a lot of money, all because they don't want to HODL.

Range Trading

This is a strategy that's commonly used by traders in otherwise volatile markets such as Forex and conventional dealers. Before someone is able to commit to range trading, they first need to pin-point key overbought and oversold thresholds in the market. From there, the trader can then buy from the overbought, and sell off in the oversold threshold.

In laments terms, this involves purchasing coins/digital assets at their least valued (overbought) and sell where they're at their most expensive (Oversold). This method proves effective when there's no commonly held value point for the asset being bought and sold.

In order to prove effective at this form of trading, the trader needs to consider these major factors: Firstly, the trader needs to find out what the overbought and oversold positions are, second, time your entry into the market to maximize returns, and third, time your exit well to capitalize on increased value.

This is a method that you can't just dive into, unfortunately, it requires a great deal of research to make sure that you don't end up losing a lot of money with a bad call.

Swing Trading

Unlike Day Trading, Swing Trading involves the investment in coins and assets over a longer stretch of time, with the latter, the time span with which a swing trader would hold onto assets can be anything from a couple of days to a number of weeks.

Unlike the others, swing trading does involve some meticulous analysis of the market, as investors need to take into consideration the fact that, while over a long stretch of time, this means that other, extrinsic factors can come into play, for the better, or detriment of your assets.

As the name suggests, Swing Trading is all about keeping an eye on the market,predicting any trends which may set the asset up or down, swooping in and selling out wherever possible.

For the cryptocurrency market, this is a strategy that works well, as it makes the investor take into consideration what factors may precipitate a buy or sell scenario.

Position Trading

A Position Trader is a long term investor, they don't concern themselves so much with the short-term market fluctuations, and instead, have their eyes on a longer-term goal while staying clear of any day-to-day deviation.

Compared to other trading styles, Position Trading involves some of the least transactions over the space of months or years. The only time there is immediate action from a position trader is when they identify a form of activity which proves catastrophic for their asset value overall.

The cryptocurrency market, interestingly, has its own name for these position traders, they're known as the ‘HODLers'. This is Where the investor holds on to their coin or token through its highs and lows without selling it.


This is the more unusual of the collection, Arbitrage, technically, is a style of trading and investment that wouldn't otherwise exist if the stock markets functioned in a perfect way, but they don't, so Arbitrage is a method.

Arbitrage works by taking advantage of the inequality in value between respective assets and the financial instruments which measure them, an Arbitrage user can then take advantage of this wherever this difference was more minuscule, then sell them on a different market where the margin is wider,

It's basically the act of buying any volume of digital assets from one coin exchange which has a narrow margin of difference between pure value and the value it buys/sells for. The Arbitrage would then take these assets and sell them on a market that has a wider margin, making a profit either immediately, or waiting until the market increases in value.

This kind of trading, to a large extent, can be automated and performed by a bot, and in some cases is.
As a system of trading, this is the one that takes the least amount of research, other than noticing any exchanges and what sort of price rates they have for their listed digital assets. The only knowledge needed to succeed at this kind of trading is the exercise of common sense.

This is a very popular method of trading in the world of cryptocurrencies, as a large margin of crypto traders quickly identify that there is an imbalance between the average price versus how much exchange buy and sell them for.


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On July 19th, Charlie Lee, the creator of Litecoin (LTC), congratulated Stellar (XLM) on passing LTC’s marketcap and edging it out from the number 6 spot according to Charlie stated the following via Twitter:

Congrats to Stellar on passing Litecoin’s marketcap. That said, it really doesn’t make sense to compare marketcaps of coins that are “printed”, b/c they have an inflated marketcap. Maybe I’m old school, but I only care about decentralized mineable coins.

Since then, XLM has retained the number 6 spot as can be seen in the screenshot below.

[Image: XLMnumber6.jpg]XLM firmly in the number 6 spot. Source,

Doing the math, XLM need only be valued at $0.2464 to surpass the current market capitalization of EOS. This value could become a reality due to the following factors that has put XLM ahead in terms of market momentum.

Potential listing on Coinbase

On July 13th, the team at Coinbase informed the crypto-verse that it was exploring the addition of 5 digital assets on its platform. They include Cardano (ADA), Stellar (XLM), Basic Attention Token (BAT), ZCash (ZEC) and Ox (ZRX). Given the fact that a similar announcement – made in June – considering the listing of Ethereum Classic (ETC) actually materialized, then there is a high chance that the group of 5 will be added on Coinbase. Once this happens, the only way is up for XLM.

facebook Rumors 

On Friday, August 10th, a story broke that Stellar had partnered with the social media giant known as facebook. The rumors had hinted that the two firms would work on the creation of a Stellar-based blockchain solution for facebook. The latter company has since denied the partnership rumors but the question still lingers in the crypto-verse.

The IBM factor

The Stellar foundation and IBM have been in a solid partnership for quite sometime now. Notable collaborations include the following:
In conclusion, the Stellar project and coin seem to have a lot going for them in the past few months. These developments will most likely result in XLM edging out EOS from the number 5 spot. Another possibility is XLM ending up surpassing XRP and claiming the number 3 spot.

by John P.Njui

Read More Read More, Posted by: crytocure
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The number of hardware wallets has proliferated with the number of cryptocurrencies in recent years. Today, consumers enjoy an unprecedented choice of hardware devices on which to store their bitcoin and altcoins, though market-leaders Ledger and Trezor still dominate. For anyone agonizing over the best device for their needs, the following models are worthy of consideration.

Best Portable Wallet: Coolwallet S

While all of the devices featured here are small enough to be portable, only the Coolwallet S is small enough to slip into your wallet alongside your credit cards. A marvel of engineering, its wafer-thin design and e-paper display enables you to check your balance and send and receive BTC, BCH, ETH, LTC, and XRP on the go. The device connects to the Coolbitx mobile app via Bluetooth, obviating the need for a desktop computer altogether. Its slender profile and mobile-friendliness make the Coolwallet S the best of the major hardware devices for choosing and using in everyday life.

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Coolwallet S
Best Multi-Currency Wallet: Ledger Nano S

No other hardware wallet can match Ledger’s trusty Nano S for multi-currency compatibility. The French manufacturer is constantly adding new coins, with the latest additions now earmarked for release on the first Tuesday of every month. The inaugural edition of #FirstTuesdayCrypto saw PoA, Icon, Vechain, Wanchain, Ontology, Kowala, Particl and RSK added. In addition to supporting ERC20 tokens, Ledger’s Nano S has support for an ever-growing list of cryptocurrencies. If you carry a diverse portfolio of coins and desire the convenience of storing them on one device, the Nano S is your best bet. Despite some grumbles with its Chrome software and Ledger Live desktop software, the Nano S remains a highly regarded device.

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Just some of the coins Ledger supports
Best No-Nonsense Wallet: Keepkey

Keepkey’s hardware wallet is no nonsense in that it works straight out the box, and is robust enough to handle most things life may throw at it. Its angular design makes it less pleasing to behold than the Coolwallet, and its basic features mean it’s less elaborate than the Ledger Nano S. There’s strength in simplicity though, and while the Nano S is prone to connectivity issues, depending on the desktop device and wallet you’re using, the Keepkey gets the job done at the first time of asking, storing your BTC, BCH, ETH, LTC, DOGE, DASH, and ERC20 tokens. It’s also got integration with Shapeshift, its parent company.
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Best High-Security Wallet: Trezor Model T

All of the hardware wallets featured here are highly secure and, if used correctly, should be safe from common attack vectors. It is hard to say categorically, therefore, that one particular device is more secure than another. What can be stated with confidence, however, is that Trezor’s new Model T comes bearing an impressive range of security features including a write protected bootloader that verifies the firmware signature and BIP39 passphrase support. For the ultra cautious, Trezor’s Model T is a very safe bet.

Whatever hardware device you choose, remember that it’s only as secure as you make it. This includes keeping your recovery seed in a very safe place with an additional copy stored elsewhere for redundancy. While Ledger, Trezor, Keepkey, and Coolwallet aren’t the only options, their flagship models cover most bases and set standards for other manufacturers to meet.

by Kai Sedgwick

Read More Read More, Posted by: crytocure
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Could a single chart convince you to buy bitcoin and cryptocurrency? According to a recent article by Forbes, the answer is yes.

“One chart explains why you should own bitcoin and other cryptocurrencies,” explains Forbes in an article posted earlier today.

That chart, broadly speaking, highlights how cryptocurrency prices are unlinked to the prices of other assets in the economy. The price of bitcoin isn’t correlated to the stock market, for example, nor is to connected to the economic performance of any national government.

In other words, bitcoin could be the ultimate diversification tool for investors. It has no correlation with other assets.

Correlation is an important concept in the financial world. As Investopedia explains,

“A perfect positive correlation means that the correlation coefficient is exactly 1. This implies that as one security moves, either up or down, the other security moves in lockstep, in the same direction. A perfect negative correlation means that two assets move in opposite directions, while a zero correlation implies no relationship at all.”

The price of gold and the price of a share in a gold ETF, for example, should be almost perfectly correlated.
One of the most important rules of investing is to diversify your assets. By diversifying your assets, you can mitigate your risk. If one asset drops, then the other parts of your portfolio won’t drop with it.

Diversification is one of those things that’s easy to preach but harder to practice. It’s easy to think you’re diversified, for example, until a stock market collapse hits. When stocks drop significantly in one market, it can lead to reverberating effects worldwide. We saw this in the 1930s during the Great Depression and again in 2008 with the Great Recession. As the global economy becomes increasingly interconnected, our stock markets are becoming increasingly correlated.

Is bitcoin the “true” way to diversify your portfolio? Forbes cites new research showing just how valuable bitcoin can be to an investor’s portfolio.

Fundstrat Analysis Shows Low Correlation Between Bitcoin and Other Assets

Forbes cites a report from Fundstrat’s Alex Kern and Ken Xuan, who compared bitcoin and other cryptocurrencies to asset classes like the S&P 500, the US Dollar, international equities, US bonds, commodities, gold, and oil. Their research showed there’s a low correlation between bitcoin and other cryptocurrencies and “pretty much all of these other asset classes.”

Cryptocurrencies had single digit correlations with nearly all other asset classes, for example, which suggests there’s very little connection between the price of bitcoin and the price of other assets. Here is the chart for reference:

Correlations between Bitcoin and other cryptocurrencies to various assets COINMARKETCAP.COM, BLOOMBERG, OTHER SOURCES AND FUNDSTRAT
A National Bureau of Economic Research Report Echoes Fundstrat’s Findings

Meanwhile, a report from the National Bureau of Economic Research supports Fundstrat’s research. That paper compared bitcoin, Ripple, and Ethereum with stocks, currencies, commodities, and macroeconomic factors.

The paper, titled, “Risks and Returns of Cryptocurrencies”, establishes that the risk-return tradeoff of cryptocurrencies was distinct from those of stocks, currencies, and previous metals.

“Cryptocurrencies have no exposure to most common stock market and macroeconomic factors,” explains the paper. “They also have no exposure to the returns of currencies and commodities. In contrast, we show that the cryptocurrency returns can be predicted by factors which are specific to cryptocurrency markets.”

So what factors are correlated to bitcoin and crypto prices? Are there any indicatorsthat are linked with the price of bitcoin and other cryptocurrencies?

The paper explains two factors that are correlated to bitcoin and cryptocurrency prices, including momentum and the proxies for investor attention.

The paper also concludes by stating that investors do not view bitcoin and crypto similar to other asset classes. They don’t treat bitcoin and crypto the same waythey treat stocks, bonds, and commodities.


Ultimately, investors who diversify can mitigate their risk. Research suggests that bitcoin could be the ultimate diversification tool. Bitcoin isn’t tied to the performance of any stock market, nor is it tied to any national economy, fiat currency, or government decisions. Nevertheless, bitcoin investing continues to be risky in 2018, and investors are advised to do their own research.


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