CRYPTO WEEKLY cryptoweeklymag.com$2 August 2022 | Volume 37 HIDDEN GEMS Page 34 Page 36BEGINNERS GUIDE Page 45VIDEO OF THE WEEK Using Crypto WalletsCookie Sale | Kodi (KODI) Crypto Investment Page 17 POLYGON : "BIGGEST OPP IN CRYPTO" Page 14 TECHDOGECOINLEAP Page 26 TRADINGINSIDER Page 40 CRYPTOKEEPINGSAFE Page 48 PRIVACYFUTURECOIN Page 24 BUYING WITH BITCOIN Page 07 CRYPTO APP FAKES Page 20 HOW SCAMMY ARE NFTS? Page 18 MINING FOR MONEY
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cryptoweeklymag.com$2 August 2022 | Volume 36 CONTENTS 10 18 24 New Crypto App Fakes Steal Your Money, FBI warns 07 JPMorgan: Post-merger, Ethereum Miners Face a Slew of Changes �������������������������������������������������������������������������������� 09 Blacklisted Cryptocurrency Site Goes Down as Tornado Cash Developer Arrested 10 Potential September Date Set for Ethereum's Merge 11 Whistleblowers Accuse FDIC of Impeding Crypto Companies' Bank Access �������������������������������������������������������������� 12 The Monero hard fork Gives the Privacy Coin Increased Security ��������������������������������������������������������������������������������������� 13 Dogecoin, Takes a Big Step Forward 14 Crypto Scam Revenue Drops by 65% in 2022 16 Polygon May Be the Biggest Opportunity in Crypto Today ���������������������������������������������������������������������������������������������������������7 Mining Cryptocurrency for Money ���������������������������������������������������������������������������������������������������������������������������������������������������������� 18 The Great Pull the Wool Over Their Eyes Trick - How Scammy Are NFTs Really? 20 There is So Much Stuff You Can Do With Your Bitcoin 24 What Everyday Crypto Investors Need to Know About Insider Trading ��������������������������������������������������������������������������� 26 The SEC Has always had a Hard Time Adapting to New things, and Crypto is No Different 30 Part Two: How to Keep Your Cryptocurrency Safe 40 Are you thinking of investing in crypto? Recent volatility doesn't deter current owners from being 'committed' ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 46 The Tornado Cash Blacklisting: Is there a future for privacy coins? 48
Robert Stone Editor Welcome to Crypto Weekly Follow Us cryptoweeklymag
After last week's shutdown of the Tornado Cash website and entry portals blocked, I have been thinking about how much privacy we are entitled to in Crypto and how much should be regulated Personally, I am a believer in freedom, and Tornado cash is just a tool It can be used for bad, or it can be used for good We certainly don't want to facilitate the North Koreans with their hacking, but how far is too far regarding regulations? What will they do next, and how far will they go? I am unsure about the answers, but since I believe in Crypto, it is my duty to myself to keep an eye on the situation As usual, a lot of stuff has happened in the last week because the music never stops in the crypto sphere, and the time keeps rolling on I hope you all enjoy what we have brought together for you this week� Please let us know your thoughts, and if you would like to see something featured, please do get in touch Hill
Crypto Weekly is the brainchild of the guys at CMC, and I am Rob Stone, Editor, and I hope to bring you an informative read on everything crypto every week of the year Another week has gone by, and this is our 37th issue of Crypto Weekly
editor@cryptoweeklymag.com Editors Letter ISSUE 37 CRYPTO WEEKLY Crypto Weekly Magazine is published by the Crypto Marketing Company 71-75 Shelton Street, Covent Garden, London, United Kingdom, WC2H 9JQ Design Dilin Divan dilin@cryptoweeklymag com Advertising Kryptochick kryptochik@cryptomag.finance Publisher Colin Woolley colin@cryptoweeklymag com Editor Robert Stone editor@cryptoweeklymag com CEO Nathan
nathan@cryptoweeklymag com
Beware of fake apps when investing in cryptocurrency
The FBI says that a scammer has marketed bogus cryptocurrency investment apps that have scammed hundreds of people
"According to the FBI, 244 victims have been identified, and an estimated loss of $42 7 million is associated with this activity," the agency reports�
The FBI reported that scammers have used "names, logos, and other identifying information" to trick users into downloading bogus applications
The FBI says YiBit, a crypto exchange that closed in 2018, was used by the scammers in one case� By tricking victims into downloading a fake YiBit app, scammers defrauded at least four victims out of $5�5 million between October 2021 and May 2022 The victims lost access to their cryptocurrency after depositing it into the app To further lure unsuspecting users, scammers promoted YiBit on Reddit To contact potential victims, scammers used women's WhatsApp accounts�
Scammers create fake versions of legitimate crypto apps to trick users into giving up their funds
So far, $42 7 million has been stolen from 244 people, according to the FBI
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New Crypto App Fakes Steal Your Money, FBI warns
The agency issued a fraud alert today regarding a scheme in which fraudsters contact potential victims and convince them to use fake cryptocurrency apps
According to the FBI, scammers created a fake app for an unnamed US financial institution and looted about $3 3 million from 28 victims� Thirteen of the 28 victims received an email stating they needed to pay taxes on their investments before withdrawing funds� Despite paying the supposed tax, the victims could not withdraw funds," the FBI reports
NEWS Updates&
Between January 2021 and March 2022, the FTC estimated that US consumers lost over $1 billion due to cryptocurrency-related fraud At $575 million, most of the money was lost to scams about bogus cryptocurrency investment opportunities designed to trick users into handing over their funds
The importance of the report is as follows: Blockchain technologies pose serious threats to the global economy, especially in their intertwined domains Technology companies have expanded into blockchain and Web3 by accepting cryptocurrencies as payments, tokenizing content, and assets, expanding into the metaverse, and utilizing other blockchain domains
Many celebrities spend millions to acquire their own pieces, such as Justin Bieber, Eminem, Snoop Dogg, and Maddona Blockchain technology and other sectors intertwined with it, such as big tech, fintech, and security, have been seriously criticized for vulnerabilities
Robert Stone
The research indicates that a vulnerable blockchain environment could threaten a decade of work, hundreds of companies, and potentially millions of people
The project's utility and the role of Bored Apes in the overall crypto movement haven't convinced Buterin NFT collections from Bored Ape are among the most highly valued in the market
Buterin Takes Public Dig at Bored Ape NFTs Global Economy at Risk from Blockchain Vulnerabilities
The Pentagon released a report titled "Are Blockchains Decentralized, Unintended Centralities in Distributed Ledgers " DARPA contracted Trail of Bits to examine blockchains' "decentralized" nature In this investigation, Bitcoin is the primary focus
"The problem with crypto space is it goes 'into very weird directions sometimes," Buterin says He commented at the Blockchain Futurist Conference in Toronto on how current use cases for private keys on a blockchain seem to have diverged from their original purpose "The 1990s spurred an idealistic effort for people to have their own cryptographic keys without relying on centralized intermediaries for privacy and security," Buterin said "However, network effects had not really manifested themselves " In response, Buterin explained, "Fast forward to today, and we have millions of people with bitcoin wallets and millions of people with private keys within their own browsers because they want to trade monkey pictures "
The Bored Ape Yacht Club (BAYC) and its community of followers have once again been criticized by Vitalik Buterin
Four entities have the power to disrupt the Bitcoin blockchain, according to the studies Furthermore, it revealed that two entities are capable of disrupting Ethereum's blockchain Blockchain security is determined by off-chain consensus mechanisms, off-chain governance, and its software, according to Trail of Bits Furthermore, miners' cloud servers are easily accessible, according to the report
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As a result of the Pentagon's research, major companies should reevaluate their investments and use of blockchain technologies, including Microsoft, which has employed blockchain technologies to advance their security, infrastructure, and transactional circuits According to Pentagon's research, major companies should reevaluate their investments and use of blockchain technologies, including Microsoft, which uses blockchain technologies to advance security, infrastructure, and transactional processes
Post-merger, Ethereum Miners Face a Slew of Changes
In addition to mining compatible cryptocurrencies such as Ethereum Classic, Ravencoin, and Ergo, the GPU rigs can also be used to play games
According to a research report by JPMorgan (JPM), Ethereum miners face an abrupt change as the network transitions from a proof-of-work to a proof-of-stake consensus mechanism Their role effectively ends, forcing them to find alternative income streams. In September, the Merge, the first of five planned upgrades for the blockchain, will take place
Updates&JPMorgan:
Most Ethereum mining rigs use GPUs, which are more flexible than bitcoin mining rigs and can be configured more easily to mine other cryptocurrencies
Investors might also view Ethereum Classic as a way to protect themselves from disruptions in the Ethereum blockchain as it shifts from a PoW to a PoS model, according to JPMorgan Miners will likely distribute their mining rigs across multiple networks that support GPU mining and other applications once Ethereum switches to PoS According to the note, mining pools will likely transition relatively smoothly as the Merge approaches
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According to the bank, ETH mining is popular because of its profitability, and a shift to mining other cryptocurrencies may hurt profits. According to the report, a sudden influx of large mining pools to a different coin could squeeze margins for incumbents Ethereum Classic is the only option for ether miners using ASIC equipment� The switch could be beneficial to Ethereum Classic (ETC) miners, according to JPMorgan Since ETH miners have decided to become Ethereum 2�0 validators, there will likely be an influx of secondhand mining rigs available� Since mid-July, the hashrate has increased noticeably, indicating the shift to Ethereum Classic is already underway
An unnamed developer was arrested for allegedly concealing criminal financial flows and facilitating money laundering through Tornado Cash, according to Fiscal Information and Investigation Service (FIOD)
FIOD focuses extra attention on advanced technologies, such as decentralized organizations that may facilitate money laundering " In June, the agency launched a criminal investigation into Tornado Cash "Multiple arrests are possible," said the government agency� Law enforcement may investigate anyone who contributed to Tornado Cash in the wake of the arrest, sparking alarm and opposition in the cryptocurrency community
Cryptocurrency Site Goes Down as Tornado Cash Developer Arrested
Microsoft's GitHub has shut down Tornado Cash's code repositories and developers' personal code repositories since then Tornado Cash's main websites appear to have also been shut down due to the sanctions
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A fter the US sanctioned Tornado Cash for helping cybercriminals
A non-profit cryptocurrency advocacy group called the arrest a "violent attack on privacy " The US sanctions on Tornado Cash, Coin Center argues, are too restrictive and effectively ban every American using this open-source tool "
A Washington-based lobbying group, the Blockchain Association, tweeted that it is unclear whether allegations of illicit conduct are unrelated to writing code "If not, this could be the start of Crypto Wars II " Coin Gecko co-founder Bobby One agreed He tweeted that the authorities should go after the parties misusing the code for nefarious purposes, not the creator "More devs will choose to build anonymously "
Tornado Cash, which had at least 39,000 users, is accused by the US of ignoring illicit activities over the service Tornado Cash was used to launder millions stolen from other cryptocurrency blockchains by suspected North Korean hackers and other Chainanalysis,cybercriminalsablockchain tracking service, added: "Cryptocurrency theft is at an all-time high, and in most hacking cases seen this year, Tornado Cash has received a share of the stolen funds " Tornado Cash was blacklisted by the US Treasury Department in response, making transactions over the site impossible for US citizens and residents As a result of the same sanctions, Tornado Cash cannot receive services from US financial institutions or technology companies
launder millions of dollars, a suspected Tornado Cash developer was arrested in the Netherlands� Crypto users were able to anonymize their Ethereum transactions through Tornado Cash
Potential September Date Set for Ethereum's Merge
NEWS Updates&
As described in the document, the first scenario began with a Bellatrix upgrade on Sept 1, followed by the Merge two weeks later on (or around) Sept 15 In the second scenario, Bellatrix would be upgraded on Sept 6, and The Merge would take place on (or around) Sept 20 The second scenario seems more likely given that Sept 6 is the preferred Bellatrix upgrade date�
In September, it appears even more likely that Ethereum will undergo a major overhaul called Merge During Thursday's Consensus Layer call, Ethereum developers discussed potential dates for the long-awaited Merge, when the Ethereum blockchain moves from proof-of-work to proof-ofDuringstake the call, Ethereum developers discussed several scenarios for when the Merge might occur on the Ethereum mainnet
The Bellatrix upgrade will start the Merge process and set everything into Theremotion will be a 14-day gap between the Bellatrix upgrade and the mainnet Merge� When the network reaches a specific total terminal difficulty (TTD), the Merge will be activated
The most likely dates are Sept 15, 16, or 20
The Goerli testnet merge, which occurred at 01:45 UTC on Thursday morning, was briefly discussed at the beginning of the call Despite a brief drop in the participation rate, developers believe it was a successful merger and that the network is healthy The drop in participation was due to configuration issues, according to Ethereum developer Parithosh Jayanthi
Due to two terminal blocks, Parithosh explained, the fork was able to resolve itself after about 128 slots due to an optimistic sync mode, which allows for the chain to sync up after about 128 slots
A review of the Goerli testnet merger
A compromise was discussed among developers to speed up hashrates, so if Bellatrix takes effect on Sept 6, the Merge could take place around Sept 16 On the All-Core Developers call next week, developers will re-discuss these dates and estimations as they don't want the Merge to take place on a weekend
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"After fixing the configuration issue, the remaining % came back online We're now at 84%," said Parithosh
Since December 2020, Ethereum has been testing the transition to proof-ofstake Among the three public testnets, Goerli was the last to run through its own merge rehearsal successfully Because the proof-of-stake protocol reduces energy consumption by 99 99% due to the Merge, Ethereum will become more energy efficient. After the merger, scalability issues will be addressed Ethereum will not complete this project
It was decided that the Bellatrix upgrade would go live around Sept 6, 2022, according to most of the developers
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Accuse FDIC of Impeding Crypto Companies' Bank Access
Toomey's letter to the FDIC chief suggests that the FDIC may have overreached in its efforts to protect banks from failures of crypto-related companies He described one whistleblower report that FDIC headquarters officials urged regional offices to downgrade their classification of one bank's loan to a crypto-related company�
"It is my understanding that it is highly atypical for FDIC headquarters personnel to be involved in reviewing an individual loan," Toomey wrote "If reports are true that there was nothing unusual about this loan (other than that it was to a crypto-related company) and that the loan amount was too small to affect the bank's supervisory rating even if it had to write off the entire loan, this episode raises important questions "
At the direction of officials at the agency's Washington, D C headquarters, Toomey said that affected parties had come forward to say that their banks had received letters from regional FDIC offices. The request was to refrain from expanding relationships with cryptorelated companies without providing any legal basis for doing so "
According to the FDIC, all insured banks that deal with crypto companies or intend to do so should notify the agency in April and express concern that "crypto assets and crypto-related activities are rapidly evolving, and given the limited experience with these new activities, the risks of this area are poorly understood "
According to the top Republican on the Senate Banking Committee, federal regulators may be going too far by discouraging banks from working with crypto companies
In a letter sent Tuesday to acting chairman Martin Gruenberg of the Federal Deposit Insurance Corporation, Sen Pat Toomey of Pennsylvania reported that whistleblowers have complained that the FDIC is "improperly taking actions to prevent banks from dealing with lawful cryptocurrency companies "
Updates&Whistleblowers
Accordingstatement to the statement, FDIC officials may request that institutions delay or refrain from initiating or expanding crypto-related activities until supervisory feedback is considered These actions are necessary and appropriate given the risks readily apparent in crypto-asset markets "
In July, the FDIC issued a notice to the public stating that FDIC insurance does not protect consumers from the failure of non-banks like crypto companies that misrepresented their products as eligible for FDIC coverage A broad decline in the prices of digital assets such as bitcoin BTCUSD and ether ETHUSD - caused many customers to lose tens of thousands of dollars
The FDIC is one of the nation's most important banking regulators, as it ensures retail customer deposits and supervises banks to establish their safety and soundness� "According to longstanding legal authority, the FDIC is ensuring that banks engaging in cryptorelated activities are doing so safely and securely to protect consumers," an agency spokesperson said in a
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Privacy Coin Increased Security
Cryptocurrency investors like Monero because of its privacy and anonymity, but it's also used illicitly� Ransomware gangs, cryptomining groups, and darknet markets use Monero since it's nearly impossible to trace, retrieve, or unmask those behind specific transactions. Untraceable coins are causing cryptocurrency exchanges to avoid listing them The IRS offered a $1 million prize in 2020 for anyone who could develop a system to track Monero transactions, but no cryptocurrency experts responded Despite already being uncrackable, Monero's latest update further boosts transaction source and privacy, making it harder to decipher As a result of the recent law enforcement crackdown on Tornado Cash, hackers may be more drawn towards blockchains built with anonymity in mind, like Monero
As a co-founder of blockchain security firm Halborn, Steve Walbroehl explained to BleepingComputer: Unlike Tornado cash, Monero lacks smart contracts that implement freeze and blacklist
Anonymity is enhanced by larger rings Due to its "ring signature" transaction obfuscation mechanism, Monero is considered to have superior privacy over other cryptocurrency projects In blockchain analysis, ambiguity is created when a user's signature is combined with others, making traceback practically impossible In the previous version, Monero supported 11 co-signers whose IP addresses were hidden behind a special protocol called 'Dandelion++,' which was built into the Bynetwork�increasing the ring size to 16, Monero's anonymity sets have been significantly improved, which is the largest absolute increase in the project's history
The choice of cybercriminals and crypto users alike
DetectingcapabilitiesMonero's illicit activity has been a challenge for law enforcement, but the latest upgrade will make it even more difficult. Because the ring size has been increased from 11 to 16, it is much more cryptographically hardened and difficult to reverse. Many projects are using zeroknowledge proofs to create privacypreserving transactions, but Monero has incorporated them for years With the upgrade to "Bulletproofs," not only are cryptographic integrity and transaction speed improved, but the transaction size is reduced, and transaction speed is AsincreasedMonero already does not use a traditional public ledger but instead uses several view keys to see transactions published on the blockchain, tracing funds from one address to another is nearly impossible
The network upgrade was originally scheduled for July 13 but was delayed because of multi-signature security fixes, critical security patches, and hardware wallet compatibility issues
The developers considered 16 to be the ideal number, for now, considering the size of the blockchain and the additional burden on the network Going even higher would mean stronger obfuscation
The hard fork features a larger ring size (from 11 to 16), an improved 'Bulletproof' algorithm for faster transactions, a redesigned multisig mechanism, and performance improvements of 30-40% on wallet sync times To continue using hardware wallets, users will need to update their firmware.
Monero, a privacy-oriented decentralized cryptocurrency, underwent a planned hard fork event on Saturday, introducing new features to boost its security and privacy
Monero hard fork Gives the
As a result of this ecosystem, developers can create projects with real-life
Where Did Dogecoin Come From?
Dogecoin'sapplications�price has risen since this long-awaited change was made�
According to CoinGecko, dogecoin prices have jumped nearly 21% over the past seven days to $0 084231
Robert Stone
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Dogecoin is about to become a digital currency that can be used for a variety of real-life purposes� To highlight speculation in the crypto industry, the popular meme coin was created as a joke� In essence, meme coins are useless tokens that have no utility Experts have warned that meme coins are largely worthless, and those who invest in them should expect nothing in return However, the crypto industry is at a pivotal point in its history, transitioning from youthful mistakes to maturity Dogecoin is about to undergo transcendence from memehood, giving the former"Joke" of the crypto world purpose and a possible future in the crypto revolution
Dogecoin, Takes a Big Step Forward
NEWS Updates&
The cryptocurrency has gained strong support from Elon Musk, who recently declared he still holds dogecoins� Dogecoin is currently accepted as payment by Tesla (TSLA), SpaceX, and Boring Co , three of the billionaire's four companies
As its logo and name, Dogecoin features the Shiba Inu dog Known as the first meme coin, it has humorous characteristics or is inspired by memes In 2013, software engineers Billy Markus and Jackson Palmer created a payment system as a joke to mock the speculation surrounding cryptocurrencies
The Dogecoin Project Finds Its Uses A platform called Dogechain, or layer-2 of Dogecoin, has been launched to allow developers to create decentralized finance (DeFi) applications, nonfungible tokens (NFTs), decentralized applications (dapps), and games Dogecoin investors will no longer need to exchange their Dogecoins for other cryptocurrencies, such as Bitcoin or Ethereum, to trade on decentralized exchanges, thanks to the new Dogecoin�
GET TWO ISSUES FREE WHEN YOU SUBSCRIBE SUBSCRIBECRYPTOMAG.FINANCETODAY
Chainalysis reported that crypto scam revenue has decreased since the beginning of the year Newbies have left the market as a result of the bearish price of assets, according to the analysis website Based on a statement from Chainalysis, the company estimates that $1 6 billion of revenue came from stolen digital assets this year Scams
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cryptocurrencyinvolvinghave declined since January Compared to last year, the number of funds stolen since the start of the year has dropped by 65%, according to Chainalysis Since the start of the year, digital assets have experienced a huge drop, which has been attributed to dwindling crypto scams Scams are always on the rise when the market is doing well, according to an executive of the firm. The revenue from scams has been trending along with Bitcoin's price, and even more so at times As a result, the number of transfers to scam websites and individuals has declined substantially, according to the company Scammers can entice investors by promising mouth-watering returns this way This sector is experiencing a rise in hacks. According to Eric Jardin, the author of the Chainalysis report, a market boom could entice inexperienced users into the crypto market The results are distorted, however, because scammers made more than $3 billion from the biggest scams in 2021 Additionally, he mentioned that around $270 million was lost in the most significant crypto scam this year Upon taking user deposits, the e-cannabis investment website revoked their access to its platform
Crypto Scam Revenue Drops by in 65%2022
The crypto sector has seen an exponential increase in hacks despite a recent quiet period for scams The Nomad hack made the most money, with $1 9 billion made through hacks since the beginning of the year� Over $190 million was stolen by the malicious actors in this month's attack
NEWS Updates&
As part of the Accelerator Program, Polygon receives investment capital, co-working space at Disney's creative campus, and mentoring as one of six members to be part of this year's class� "Disney hopes to collaborate with innovative companies through its Accelerator Program, which helps companies grow around the world�" Polygon's role as Disney's blockchain of choice could propel it to new heights� This could have a significant impact on Polygon's growth and price With zkEVMs on the horizon, Instagram is on the horizon, and the possibility of joining forces with Disney almost seems
"zkEVM" - The Zero Knowledge Ethereum Virtual Machine Through zkEVMs, Polygon can support both new and old smart contracts written on Ethereum Using these zkEVMs, developers can migrate Ethereumbased smart contracts to Polygon's blockchain without rewriting any code This technological feat allows Polygon's blockchain to support other use cases without sacrificing speed or cost.
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The Polygon developers continue to create new solutions to support more and more use cases despite a brutal bear market for most cryptocurrencies�
Robert Stone Ethereum's Layer 2 scaling solution is Polygon Since ETH's rise, Polygon (MATIC) has made a name for itself Despite its faster speeds and lower fees, Polygon offers the security and decentralization of Ethereum Because Ethereum suffers from congestion and high traffic at times, Polygon makes Ethereum more efficient. Despite Polygon's proven track record, what makes the company most exciting is its future
Despiteimpossible�its nearly 70% drop from its all-time high, Polygon might have the most upside of all the beaten-down cryptocurrencies If Polygon returns only its previous high of almost $3, that will provide investors with a 300% return In investing, nothing is guaranteed, but if Polygon could reach that price before its association with Instagram or Disney or the introduction of zkEVMs, imagine where it might go Feature
Because Polygon offers lower fees and faster speeds, developers might want to consider it Additionally, Polygon won't compromise Ethereum's highly coveted security and decentralization
As far as Polygon NFTs are concerned, this is the most exposure they have ever received With Polygon's presence on Instagram's two billion users, maybe more people will learn about its lower fees and faster transaction speeds
The Disney Company Invests
Another well-known company expressed interest in the blockchain in addition to Polygon's stellar performance over the past month Polygon was one of the latest rounds of Accelerator Program participants announced by Disney (DIS) in late July
A zkEVM is expected to go live in early 2023 In crypto, timelines are notoriously unreliable, as evidenced by Ethereum's multiple delays to proof of stake; zkEVMs might change that Meta and Polygon team up Users will likely realize that Polygon offers many possibilities over the next few months NFTs will be available in more than 100 countries across Asia, Africa, the Middle East, and the Americas, Instagram announced a few weeks ago� Instagram is planning to support NFTs from Solana (SOL), Flow (FLOW), Ethereum, and Polygon
Users can share their digital assets with followers instead of purchasing NFTs from the marketplace There is basic information about the piece's creator, name, and blockchain on the NFTs
Polygon May Be the Biggest Opportunity in Crypto Today
Get Familiar With Mining
Mining Robert Stone
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CryptocurrencyforMoney
Various blockchains require mining to open new blocks� Cryptocurrency rewards are awarded to the first miner who solves the cryptographic puzzle called the Consideringhash this, learning what cryptocurrencies can be mined is one of the first steps to becoming a cryptocurrency miner Mining coins such as Bitcoin (BTC), ether (ETH), Monero (XMR), and Litecoin (LTC) is possible
Feature
Creating new cryptocurrency tokens or coins is known as cryptocurrency mining Unlike those who mine precious metals like gold physically, it has little in common with their work The comparison is valid However, digital currency miners use computers to solve cryptographic problems and receive cryptocurrency as a reward Find out how to start mining your favorite cryptocurrency and how much it will cost you You should become familiar with the mining process before you begin Mining cryptocurrency requires a cryptocurrency wallet, mining software, and mining hardware Equipment can be expensive, but the more you spend, the more you make Mining pools can increase your profitability by sharing the workload and combining hashes Be sure to compare the costs to the time it will take you to recover your expenses before starting If your setup outlay never makes up the costs of mining, it might not be worth it in the long run
In recent years, mining the most profitable cryptos has become more difficult. The difficulty of mining most cryptocurrencies increases over time, and miners with large-scale mining operations have taken over most of each cryptocurrency's network's hashing power� The amount of calculations a network can complete per second is its hashing Becausepowernotall cryptocurrencies have competitive reward systems, not all cryptocurrencies can be mined The
Getting Started with
Cryptocurrency Mining
Since most mining clients are installable and have graphical user interfaces, mining is relatively easy to do Using your mining client, you can sign up at a mining pool, enter your mining address, and begin Cryptocurrency'smining value makes mining very competitive While it was possible to mine several coins per year during the early days of crypto, mining has become so difficult and competitive that it is only profitable for those with large mining operations� Mining crypto can, however, earn a few hundred dollars a month or up to thousands depending on your setup�
Websites have been created that can estimate how much you can generate using specific hardware� The operators of NiceHash have put together an informative website that allows you to input your mining hardware and obtain return estimates based on the equipment of other pool members You can use this tool to determine how long it will take before you earn enough from your hardware to cover its cost One way of mitigating cost is using the mining apparatus to heat your home in the winter like a friend in Michigan does The Time Factor Many factors determine profitability.
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There are multiple types of software available for popular cryptocurrencies like Bitcoin Most mining software is free to download and use, and various operating systems are supported Although many of these options will be effective, slight differences could have an impact on your mining operation Mining Hardware
A mining rig setup is most likely to be expensive due to the mining hardware Mining requires a powerful computer, perhaps even one designed specifically for the purpose The hash rate of a mining rig can be increased by building one or purchasing one prebuilt Mining is more profitable when the hashrate is higher Home Computers Cryptocurrency mining requires specific hardware, which can be built into a computer� Nvidia graphics cards are capable of mining However, some might not be fast enough Multi-GPU mining rigs can be built but recouping your expenses and earning a profit may take years. With a multiGPU rig, you may still be unable to mine crypto profitably on your own.
As compared to buying an ASIC or building a multi-GPU mining rig, the setup costs and effort are much lower Because any mining rewards will be split with others, you're likely to earn much less money from the process
In general, mining operations consist of three basic components: wallets, mining software, and mining hardware� Your Crypto Wallet Any tokens or coins you earn through mining will need to be stored in a cryptocurrency wallet You can send and receive tokens securely using a unique address with a wallet Online wallets come in wide varieties, and even "cold storage" wallets don't operate online Before you begin mining, decide which one is right for you Crypto Mining Software
Return on Investment Should Be Considered There is still a lot of excitement and potential for profit in mining. It is not without its pitfalls, however Many miners, for example, spend a lot of money setting up their rigs, only to find out that they cannot recoup the costs Protect yourself from this possibility by understanding as much as possible about the mining world
overwhelming demand for mining hardware has pushed up the costs and effort associated with setting up a rig for mining some cryptocurrencies The equipment you need may be more readily available at others� Planning how and what you will mine alone makes it worthwhile
Feature
The setup you choose might cost you several thousand dollars Join a Mining Pool
The computer will require additional hardware, such as a power supply, motherboard, processor, memory, and drives
Mining a full crypto token can take a considerable amount of time It takes about 9 minutes for the network to create a new block and assign the reward of 6 25 BTC6 to the miner(s) who solved the block hash As Ethereum's blocks are mined in a matter of seconds, fewer ETH is rewarded and split among mining pools What Are the Benefits of Mining Cryptocurrencies?
A mining pool consists of a group of miners who pool their computing power for the purpose of mining In proportion to how much work each address contributes, profits are shared. There are advantages and disadvantages to mining pools, as you might expect
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It was said when NFTs started that this would be the newest and most amazing thing, transforming technology where everyone would use them to control transactions and prevent fraud, and it would be more than just a fad for early adopters
The NFT industry has also been home to several other prominent exit scams
The Great Pull the Wool Over Their Eyes TrickHow Scammy Are NFTs Really?
NFTs are digital assets that cannot be divided into smaller pieces Because each asset can be easily identified and tracked, they are ideal for virtual worlds and other online applications Due to the excitement surrounding this new technology, scammers have taken advantage of it, increasing the number of scams As we were told, this is what happened NFTs are now supported by a variety of platforms, the first of which was Ethereum TRON, EOS, NEO, BSC, and Cardano are some of these NFT Scams Abound
Robert Stone
Few of them even knew their potential beyond the gimmick phase
The Prodeum scam is a recent example Through this scam, the developers raised over $11 million by promising to create a revolutionary new way to track produce� Once they raised the money, they disappeared without a trace, taking
NFTFeature
The popularity and value of non-fungible tokens (NFTs) have grown rapidly since they were first introduced in 2015. Brand companies have released NFTs left and right in 2022 to "newsjack" and get their names in the news, even if they don't sell It has become something many new launches attached themselves to just for the publicity of having them on their product list, even though they never really intended to do much with them
OpenSea says it's been working on a solution to this problem and is currently implementing new measures that will "more effectively prevent plagiarism and spam�" But it's not clear yet what those measures will be or how effective they will be – since most artists aren't on OpenSea and can't actively monitor if their artwork is being stolen These scams have caused many people to lose faith in NFTs as a whole Many artists and developers have criticized NFTs for being nothing more than vehicles for fraud and theft� Even Wikipedia has refused to recognize NFTs as 'art' under its guidelines NFT art, for the most part, isnt really NFTs
Several months ago, NFTs were added to the list of digital currencies along with Bitcoin
NFTFeature
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In the NFT marketplace, valued at $13 billion after raising $300 million, over 80% of free NFTs are plagiarized from other artists or spam It literally means that it's a black market by definition.
OpenSea faces a major problem with this, as it reduces the value of NFTs that are legitimately created and traded Furthermore, it is frustrating for users who spend time and money creating original content, only to see it copied and used without their permission� In spite of the claim that NFTs would prevent fraud and track real artwork, they were used just for the opposite�
The Great NFT Black Market
all the investors' money They also shut down the website leaving only the word "penis Darcrus" and Thingschain are also notable examples� In both scams, the developers raised large sums of money by promising to create innovative new platforms using blockchain technology� However, after taking the money from investors, they failed to deliver on their promises and disappeared with the Infundsaddition, NFT creators have been accused of stealing artists' work, according to many artists According to Wikipedia, the practice is not considered 'art' under its guidelines
When purchasing NFT art right now, it's really nothing more than directions on how to access or download an image NFTs do not store images on blockchains and are often hosted on web 2�0 storage, which is likely to end as 404s in the near future, meaning their value is even lower You probably didn't know this However, even though there is a rise of scams, this isn't just about NFTs
For any market for existing investors to profit, new buyers have to be drawn into the market� So too, NFTs, with something illusory attached to the digital Almostassetsanything can be turned into a market by humans However, speculative bubbles are forming in things with no fundamental value
Not All NFTs are Scams
Although NFTs are still in the early stages of development, they have great potential for use in logistics IBM and Walmart, for example, have developed a blockchain-based system for tracking food items from farm to table Tracking meat and produce using NFTs ensures that they are not contaminated and can be traced back if there is a problem
Authentication is one of the main functions of blockchain-based NFTs in supply chains Businesses can ensure their products' quality and authenticity by tracking the movement of goods through the supply chain and recording it on the blockchain� Transparency is another advantage of using NFTs in supply chains and authentication
Numerous legitimate projects are being developed using NFTs that do not involve fraud or theft in any way These products aren't promoted on message boards and in groups trying to make a quick buck like the bulk of scammy NFTs do By showing that NFTs can be used for legitimate purposes, these projects legitimize NFTs as a whole
Supply Chain Authentification
NFTFeature
The supply chain industry is also being revolutionized by blockchain technology
Supply chain applications using NFTs are also being investigated by other companies Alibaba, for instance, has partnered with logistics firm Cainiao Network to develop a blockchain platform for tracking shipments� Information such as package tracking numbers, delivery times, and temperatures will be recorded using NFTs Keeping this in mind will help ensure that goods are delivered on time and in good condition NFTs are expected to play an increasingly important role in ensuring the quality and authenticity of products throughout the supply chain as more businesses adopt blockchain technology Taking NFTs seriously requires some sort of governance and a way to ensure that the market isn't only about scams and quick money Until this happens, NFTs will still be 80% scams, just like the rest of crypto So don’t let the scammy nature of many NFTs deter you if the rest of crypto has not Do your due diligence, and you will be able to focus on the 20% of NFT1s that are not scams, just as we do with the rest of crypto
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Blockchains are immutable and transparent, so businesses can verify that their products have been processed according to regulations and track their origins� Trust is built between businesses and consumers as a result
However, not all NFTs are scams
Bitcoin can now be used at Starbucks stores nationwide if you have a special app called Bakkt Bitcoin will be converted into Starbucks Cards and saved in your Starbucks account Once you've downloaded the app, you'll be able to pay through it� Trading
You Can Do With Your Bitcoin Stone
Robert
Feature
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First on the list and most common is investment: Due to its high return on investment, Bitcoin is becoming increasingly popular among investors. Since the commodity was first traded in 2009, it has returned thousands of times that amount for the first time in its history. Investors in Bitcoin can benefit from volatility as well as suffer from it The risk of losing money in any investment is there, but if you do the right thing, you can also make a lot of money quickly It is important to gain at least a basic understanding of what you are doing because you can lose it just as fast Better yet, however, use your bitcoin to buy other currencies� There are many of them out there for all kinds of things Some of them have "use cases" that may be quite surprising It's not all meme coins out there; that is for sure Crypto enthusiasts know that things can, and often do, improve in the Cryptocurrency's favor even in a bear market. Investing significant time and effort into researching the risks involved will provide you with as much information as possible Make sure you do your due diligence before you begin Frappuccino? With all that investment you are doing now, maybe a good cup of coffee is in order, or how about a frappuccino?
Bitcoin owners, rejoice: more retailers than ever are accepting Cryptocurrency as payment, even the ones you might not expect Cryptocurrency acceptance continues to grow among companies Soon, if the folks at Crypto Weekly and its parent company, the Crypto Marketing Company, have anything to do with it, Amazon products will be included on the list Here are a number of things you can do or buy with your Bitcoin Some are quite surprising and unusual� Bitcoin investments and Bitcoin payments are becoming more popular But what can you actually buy or do with Bitcoin?
Just like the stock market, people trade and can even make a living with crypto I am one of them Been trading since There is So Much Stuff
Gambling at Online Casinos
It's common for students and their families to invest in Bitcoin, then cash out when the time comes to pay�
Feature 2012, and with all the market volatility, there is plenty of opportunities You got to learn how to read and use the charts to take the proper positions at the right time to make a profit. Learn to do it well, and you will never have to make money working for anyone ever again
Gift Voucherss Bitcoin users have a variety of options when it comes to converting bitcoin into other currencies On a few websites that exchange gift cards for bitcoin, you can buy and sell virtually any gift card
Lending Bitcoin investments can earn you profits even if the value does not rise This is much more surprising and beneficial for people holding bitcoin investments
A Vacation Are you ready for a vacation? Don't forget to use your bitcoin CheapAir is one of several airlines that accept Bitcoin payments Alternatively, Expedia accepts bitcoin for flight bookings. Upon arrival at your destination, you can continue making crypto payments
This approach, however, may have the downside of decreasing Bitcoin's value while college tuition rises
A growing number of hotels are accepting Bitcoin, including The Kessler Group, a luxury hotel chain in the U S The Kessler Group accepts Bitcoin, so you may want to consider it when planning your trip to Vegas The D and Golden Gate hotels accept bitcoin as payment, and bitcoin ATMs are located throughout the city Property Bitcoin transactions are now accepted by a growing number of real estate companies around the world When buying a property outside their country of residence, people often choose this method if they don't want to deal with the difficulties of cross-border transactions, such as transferring fiat money. Using the blockchain to tokenize real estate, for example, ensures transparency and speeds up commercial transactions Travel Travel websites accept Bitcoin payments from prospective customers, for those who are unaware You can also make reservations for bar and hospitality through these platforms, along with excursions and housing With Cryptocurrency, you can still go on that business or pleasure vacation even if you don't have any cash on hand Furnishings Are you looking for some new furniture? If you have Bitcoin, Overstock will take it At checkout, choose "Pay with Bitcoin" and fill your cart with the items you want to purchase Bitcoin may only be combined with gift cards, in-store credit, Club O rewards, and coupons on Overstock com
It is still possible to play slot machines and other casino-related activities using Bitcoin, even if you don't have much money to spare� Next time you want to play at an online casino, consider using Bitcoin instead of cash
Purchase
A college degree Bitcoin became an accepted form of payment at King's College in New York City in 2014 A few other schools have since accepted Cryptocurrency
Socks
There have been a few decades since the world's first online cryptocurrency peer-to-peer lending organization was founded It is now possible to earn an additional 2025 percent in quarterly investment earnings by lending money to many people using these websites
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The list doesn't quit I could go on and on and get ridiculous with this, so I will stop here With tokens, you can spend them locally or online If you have excess money in your wallet, you can use your tokens to purchase gift cards or choose a retailer that accepts them It has never been easier to use Bitcoin without cashing them out
Need a pair of socks? Bitcoin can be used to keep your feet warm You can buy and sell socks using digital currency on Unisocks Exchange MtSocks https:// www mtsocks com/offers a full line of unique socks that can be purchased with bitcoin To get started, you'll need to connect your digital wallet
Payments don't have to be made using your digital wallet If you built up student loans during college, you could use your earnings to repay them after graduation
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Robert Stone
I nsider trading in cryptocurrency has recently come under the spotlight, so we examine what it is and how it affects crypto investors. In the first-ever case of insider trading in digital assets, the Justice Department recently charged an executive of OpenSea with the offense Meanwhile, the SEC is investigating how crypto exchanges handle insider trading Insider trading: what is it? A person engages in insider trading using confidential information to make trades. Suppose you work for a company about to announce a big merger or disappointing annual results A person could be prosecuted for insider trading if they buy or sell stock based on that information
What Everyday Crypto Investors Need to Know About Insider Trading
Insider trading is prohibited in stock investing As a precaution for companies registered with the SEC, it has put in place systems to prevent it Companies can implement blackout periods, appoint compliance officers, and develop training programs during key events However, it hasn't been completely eradicated� Insider trading and crypto: how does it affect the market? Systems and processes are less established in the cryptocurrency world
In addition, most cryptocurrencies aren't regulated as investments by the Securities and Exchange Commission or other regulatory bodies worldwide SEC-registered assets are not the only ones subject to insider trading rules
There is no defense to ignorance of the law� OpenSea's Nathaniel Chastain will be charged with fraud by the Department of Justice at the start of Feature Contd���
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June According to reports, Chastain secretly bought some of the NFTs featured on the platform's homepage Following the price increase, he profited.
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DamianmarketplacesWilliams,U S Attorney for the District of Columbia, said that "while NFTs may be new, criminal schemes of this type are not Nathaniel Chastain allegedly betrayed OpenSea by taking money from it. It will be the Office's mission to stamp out insider trading, whether it takes place on the stock market or on the blockchain "
Globally, OpenSea is one of the biggest NFT
Cryptocurrencies are also being scrutinized for buying shortly before they are listed on major crypto exchanges Profits can be made if you know beforehand that prices will increase after a listing announcement According to Fox News, the SEC has asked several
Feature
exchanges for more information Digital asset insider trading charges may be expanded if authorities can prove exchange employees are trading based on non-public listing information How insider trading is hurting crypto investors Since insider trading creates an uneven playing field, the SEC cracks down hard on it to protect ordinary investors As
Because crypto regulations are so limited, crypto investors rely on individual companies to self-regulate� For example, trusting the team at a crypto project not to buy or sell the coin or token before a big announcement� Or hoping that employees of crypto exchanges won't try to take advantage of advanced knowledge of, say, a new listing
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Chastain is being prosecuted for wire fraud and money laundering in the OpenSea case, not for insider trading Authorities such as the DoJ and SEC do not want to wait for new regulations
a result, insider trading erodes trust in the cryptocurrency and NFT markets If you buy crypto or an NFT, you can't be sure that someone who unfairly knows something hasn't already pushed up the Apricecrypto exchange claims it has safeguards in place to prevent employees from stealing confidential information, but it is unclear how strict those safeguards are or how deep the
problem is Argus, a crypto compliance company, published an analysis in The Wall Street Journal� It showed that 46 different crypto wallets purchased a token shortly before it was listed on various exchanges� With just one token listing, the trades netted over $1 7 million in profit.
Additional investor protections and controls on insider trading may be incorporated into additional crypto regulation in the U S , but that may not be enough As a result of President Biden's executive order, a new regulatory framework is in the works, and the extent to which the new rules are strict will determine how much the new rules will cost
According to several industry insiders, the DoJ's case in OpenSea is just the beginning The near future may also bring additional enforcement actions and increased regulatory controls� "while NFTs may be new, criminal schemes of this type are not. Nathaniel Chastain allegedly betrayed OpenSea by taking money from it. It will be the Office's mission to stamp out insider trading, whether it takes place on the stock market or on the blockchain."
Feature
It has been reported that the Securities and Exchange Commission is investigating Coinbase and other exchanges after threatening to sue Coinbase for listing unregistered securities for years If the plan proceeds, the SEC may make a serious mistake Because cryptocurrency differs from traditional financial instruments, it has confused regulators since its inception
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Is Crypto Money or property or what?
There's more to it than that You can pay for everyday items with crypto, just as you would with regular money One example is Bitcoin, which has thousands of merchants accepting payments directly over its Lightning
The SEC Has always had a Hard Time Adapting to New things, and Crypto is No Different Robert Stone
There's a problem, though Crypto tokens seem to function as a kind of equity that you hope to profit from. The profit from governance tokens, which allow users to vote on protocol changes, will be shared with you on crypto exchanges Profit-sharing tokens are different from equity securities in some ways There are no traditional corporate structuresboards of directors, executives, and even companies on the other side of the deal. Such projects cannot be filed or signed by anyone Crypto tokens are commonly used to pay for data storage The data is Contdoften���
Many people wonder why Coinbase doesn't simply register the tokens it sells with the Securities and Exchange Commission
Editorial
InNetwork20national chains, such as Petco, Chipotle, Office Depot, and Regal Cinemas, QR codes can be generated by an app using some leading cryptocurrencies Earlier this week, I bought a pair of pants and laundry detergent with crypto tokens that the SEC had previously alleged were unregistered securities
The 1933 Securities Act would have been shocked to see another aspect of crypto Consider a bank or stock exchange run by autonomous, open-source computer code that took deposits and processed loans To keep the code running smoothly, anonymous coders occasionally modify it over the internet We aren't watching a science fiction movie here Each day, billions of dollars are deposited and lent out The SEC conducts investigations and regulatory inquiries about these autonomous computer banks and exchanges Last week, I also used them to buy pants and laundry detergent while the SEC considers most tokens securities and that they need to be registered to avoid enforcement. In addition, it benefits scammers and hucksters who have exploited crypto Instead, we would be better equipped to distinguish legitimate crypto projects from scams if the SEC created a regulatory regime tailored to crypto investors' needs Defendants in SEC cases can now use the nebulous nature of crypto tokens Bringing cases against legitimate businesses, such as Coinbase, is good; bringing cases against fake projects that steal crypto is not It will be impossible to apply a cookie-cutter definition of security to crypto tokens due to their morphable nature
Federal securities law needs to be rethought in light of innovations When it came to delivering financial statements electronically, the SEC was ten years late The company was similarly behind the curve when it came to allowing CEOs to share information via social media A similar mistake shouldn't be made with crypto�
32 www.cryptoweeklymag.comAugust 2022 | Volume 37 Editorial stored in the form of tokens� A wider variety of tokens is available You might find them at Chuck E. Cheese if you want to play video games� What if you needed a token every time you stored a document in the cloud? In many cases, cryptocurrency is hard to categorize because it blurs the lines between commodities, stocks, and money There are a few that are both Some tokens can also be used as a means of payment or investment It depends on the user's preference what the purpose should be Even though cryptocurrency developers would like to register their projects with the SEC, they are not required to do so. They can't file the necessary paperwork with the commission since they don't have a board, CEO, or CFO The commission still mandates that shareholders cannot vote by proxy by mail
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cookiesaleiokodi_coin PROJECT 1 PROJECT 2 Cookie Sale
HIDDEN gems
Cookie Sale launched in February 2022, and aims to become one of the biggest launchpads for tokens on the BSC. With its sleek design and easy-to-use interface, CookieSale looks to be adaptable and adoptable for developers and a safe environment for investors.
Kodi is creating an industry-first Entertainment Network that will become THE place for crypto investors to socialize, have fun, win prizes, and learn about everything crypto. Is there anything more about Kodi? How do you, as an investor benefit? Kodi by itself, is an entertainment project. Kodi plays games. post podcasts, do AMAs, have tournaments, live streams, and play plenty of music. At Kodi there are two subsidiaries. "Pitch" being the inhouse advertising agency, which is a one-stop shop, all things content creation, both in crypto and fiat. Branding, websites, commercials, you name it Kodi does it. The Pitch Advertising Agency and CookieSale launchpad. Cookie Sale will work in unison to become the go-to destinations for developers to build their brands and launch their projects With Cookie Sale, you can launch your project from A to Z. Gone are the days of taking your token supply. Kodi simply charges a flat fee, no strings attached. So how do you benefit as a holder? Well, if you're, a holder of at least ten million KODI you receive BNB, rewards automatically deposited into your wallet. You also can participate in Kodi`s weekly games where you can win, BNB for free. But here's where things get really exciting. Two percent of every transaction goes straight into the Kodi treasury contract. The treasury buys back Kodi tokens, creating an increase in price, and stores them in the treasury. Twenty percent of these tokens are burnt and 80% gets used to top up the staking pools as needed revenue generated through pitch and cookie sale also gets added to the treasury contract. This creates the ever-increasing price floor, whilst also removing tokens from circulation. Go say hi on their telegram community, or check out their website at Kodicoin.com.
Clear Vision Kodi`s vision is to create an ecosystem that will be a driver in promoting a safer economic environment for crypto investors to participate in and for developers to grow their projects.
CookieSale works side by side with Kodi’s marketing & advertising agency Pitch. This benefits developers and holders of Kodi as well. As a developer, you will be able to use CookieSale as an “A to Z” platform. From advertising to zhooshing up your “cookie” there will be something that satisfies almost anyone’s tastes. As a Kodi holder, a percentage of the revenue generated through CookieSale will be bought back into Kodi and then airdropped to holders, holding 10 million or more Kodi tokens.
Backed by powerful auditing companies such as Certik, SpyWolf, Brewlabs, Dessert Finance, Contract Checker, and HashEx developers will be able to choose between three pre-audited contracts or create their own and have it audited separately. Other key features include liquidity locking, anti-bot features, custom airdrops, visual cues to aid in identifying safer investments, and more. One notable feature that stands out amongst other launchpads is that CookieSale will only charge a flat fee for listing. Developers will be able to launch the right way, without the fear of a large sell from the launchpad taking profit.
cookiesalekodicoin Kodi (KODI) cookiesale kodicoinofficial
Kodi’s mission is to create a one-stop-shop IDO platform and provide investors with an interactive Entertainment Network that will keep users engaged, informed, and entertained while investing in the crypto space.
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36 www.cryptoweeklymag.comAugust 2022 | Volume 37 BEGINNERS guide Crypto wallets and What They do
The blockchain also supports cryptocurrency transfers
Robert Stone
Crypto wallets: what are they?
Users can manage their crypto balances using cryptocurrency wallets, which store public and private keys In some wallets, users can even buy and sell crypto assets or interact with decentralized applications (dapps) with their crypto assets
Sending tokens involves signing the transaction and broadcasting it to the blockchain network using your private key Your transaction will then be included in the network's updates to reflect the updated balance in your and the
recipient's addresses As a result, the network will reflect the updated balance in your address and the recipient's address
In reality, crypto wallets don't store cryptocurrency as physical wallets do Crypto wallets do not store cryptocurrency as physical wallets do These servers also hold your private keys, allowing you to conduct transactions and showing you your addresses' balances
Transferring crypto tokens from your mobile phone to someone else's mobile phone is not a 'sending' of crypto tokens
It is also possible to interact with decentralized applications (dapps) with crypto assets in some wallets, such as buying and selling crypto assets
Cryptocurrency Wallet Types Crypto wallets can be classified into two types: software-based hot wallets and physical cold wallets� Find out which cryptocurrency wallet is best for you and your needs by reading on Hot Wallets: Cold wallets do not have Internet connections, whereas hot wallets do In hot wallets, the Internet is connected, while in cold wallets, the Internet is not connected As a result, hackers can more easily access funds stored in hot wallets Hot wallets include Desktop wallets, Mobile wallets, and Web-based wallets
Cold Wallets: Cold wallets are entirely offline, as explained at the beginning of this section Despite their inconvenience, they are more secure than hot wallets A piece of paper or engraved metal is an example of a physical medium used for cold storage
Examples of cold wallets include: Paper wallets Hardware wallets How does a paper wallet work? Paper wallets store private and public keys in physical form Since remote hackers cannot access these keys, which are kept safe from phishing attacks, this is a safer option than keeping funds in a hot wallet However, it exposes the potential risk of the piece of paper being destroyed or lost, resulting in irrecoverable funds
A hot wallet stores and encrypts private keys on its own website, which is kept online It can be risky to use a hot wallet because computer networks have hidden vulnerabilities that hackers or malware programs can exploit Hot wallets with large amounts of cryptocurrency are fundamentally poor security practices Still, the risks can be minimized with hot wallets that use stronger encryption or devices that securely store private keys
An investor might want to connect or disconnect their cryptocurrency holdings from the Internet for various reasons As a result, many cryptocurrency holders have multiple wallets, including both hot and cold wallets
Do you know what a public key or a private key is?
Regardless of whether the wallet is hot or cold, it is recommended that you withdraw the majority to a crypto wallet for larger amounts Your private keys remain yours, and you remain in control of your finances.
Random, unpredictable characters make up a key Public keys can be shared widely, whereas private keys should be kept secret Public keys are like bank account numbers and can be shared widely� Private keys are paired with public keys in public-key cryptography Data is encrypted and decrypted using them together� Crypto Wallets: Why You Need One You can only store your cryptocurrency safely if you use a secure method If you plan to trade crypto frequently or if you have small amounts, it is not advisable to store them directly on the exchange
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Cryptocurrency Wallets: How Do They Work?
As I mentioned earlier, you don't actually store your coins in a wallet� You actually store your coins on public blockchains, not on your wallet An address must be verified with a private key that comes in a set of specific codes before various transactions can be completed Your wallet's speed and security often depend on its type
Choosing a storage method will depend on your needs, as both have their advantages and disadvantages For example:
How does a Hardware Wallet work?
It might be wise to invest in a cold wallet, however, if you plan to store a large number of crypto assets and value security over convenience
Non-Custodial Wallets vs. Custodial Wallets Wallets can also be divided into custodial and non-custodial types and those listed above� Wallets that are kept in a custodial account
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Malicious actors cannot control the physical button on the device where you sign a transaction The best practice is to store cryptocurrency assets that don't require instant access offline in cold wallets. The user is entirely responsible for securing their assets, however� Therefore, you must make sure you don't lose or get them stolen!
Custodial wallets are typically the most popular web-based crypto wallets
Cryptocurrency exchanges typically offer these wallets for convenience and ease of use, and they are especially popular with newcomers and day traders When users use custodial wallets, they no longer have full control over their tokens, and exchanges keep the private keys required to sign Userstransactionsmusttrust that their tokens will be secure and that strong security measures will prevent unauthorized access to them Authentication measures such as two-factor authentication, email confirmations, and biometrics, such as fingerprints or facial recognition, are among them The user must set up these security measures before the exchange allows transactions
Users' tokens are also usually protected by exchanges and custodial wallet
Hardware wallets are usually USB or Bluetooth devices
Accessibility will be vital if you plan to trade daily, so a hot wallet might be the best choice
Keys are stored in a hardware wallet�
Cold Wallets vs. Hot Wallets: What's the Difference?
A multi-signature wallet is a wallet that requires two or more private key signatures to authorize transactions
providers
Those who possess the seed phrase can gain full control over their wallet's funds If you lose your seed phrase, you will lose access to your funds� The mnemonic phrase must be stored securely and not digitally! Rather than printing it out at a public printer, if you must do it digitally, take a picture of it with your phone, but it is much better to write it on a piece of paper and keep it in a safe place offline.
Because private keys are stored on the hardware wallet, hardware wallets are inherently non-custodial Crypto com Wallet, a non-custodial software wallet, is another option Private keys and funds are fully under the control of users Users are, however, responsible for their own security in terms of storing passwords and seed phrases When any of these are lost, recovery is typically difficult or impossible because they are not stored on third-party servers�
BEGINNERS guide
You must write down and store 12 randomly generated words, known as a 'recovery,' 'seed,' or 'mnemonic' phrase, to create a non-custodial wallet� You can generate all of your public and private keys from this phrase As the private key is stored locally with the user, noncustodial wallets allow users to retain full control of their funds It may be used as a backup or mechanism of recovery if you lose access to your device
Disadvantagesandof
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Non-Custodial Wallets
Different types of users prefer custodial and non-custodial wallets for different reasons Due to the better security practices and backup options offered by an exchange or custodian, a custodial wallet makes more sense if you are prone to losing passwords and devices It's, therefore, a popular option for beginners with little to no experience trading cryptocurrencies A custodial wallet also tends to have lower transaction fees� You may, however, want to consider a noncustodial wallet if you wish to maintain complete control over your funds� In the end, it's up to you
Advantages
Custodial and Non-Custodial Wallets
Wallets with Multi-Signatures
A user may lose one key but still, have two other keys that can sign transactions In the case of a lost key, an individual using a multi-sig wallet can prevent losing access to the entire wallet Hedge funds, exchanges, and corporations will benefit from multisig wallets since they prevent misuse of funds and fraud Having one key for each authorized person and requiring the majority of keys for a sign-off, no one can transact without authorization Multisig versions are available for any of the wallet types described above Multisig hot wallets, cold wallets, hardware wallets, etc�, are all possible�
Some funds are usually transferred to the company's cold wallet, which is protected from online attacks
Feature
The good news is that there's an easy way to ensure you don't lose your crypto when your computer crashes Store your seed words on a physical piece of paper that can't be destroyed, in a safe place Your words can even be written on multiple pieces of paper and stored in different secret hiding places if you're worried about losing them
40 www.cryptoweeklymag.comAugust 2022 | Volume 37 Part Two: How to Keep CryptocurrencyYourSafe
Seed words should be stored carefully for a number of reasons You might skip this step if you're new to crypto and in a hurry, or take a screenshot as a backup if you're in a hurry Whenever your device crashes, you will lose access to all your cryptocurrency if you don't back up Eventually, your PC will crash due to time and long use, wear and tear� All PCs die�
Words Correctly
Today
Any person who gains access to your computer can steal all your crypto if you store them as screenshots on your computer, for example In order to steal your seed words, they only need to locate the image, copy them, and then import them into their wallets
By infecting your computer with malware
You run an additional risk by storing your plaintext seed words on your computer
Your seed words must be entered in the order they were displayed when you recovered a wallet Don't rearrange them when you write them down! Store them on a physically durable object that cannot be erased
In last week's weekly, I spoke about keeping your passwords safe, using two-factor authentification or an authentification app, and downloading your crypto to an offline wallet. I will explain backing up your seed words properly and how to use them Your Wallet Seed We'll assume you've already downloaded and set up wallet software Immediately after you log in, you are told to back up your seed words, which may be unfamiliar to you Why do we need seed words? "Seed words" are a series of words that can be used to generate all your account keys cryptographically They are called "secret recovery phrases" or "master keys " You can recover your accounts if your device crashes using your seed words Your seed words give anyone access to every account related to them
Backup
If you lose your hardware wallet or have it stolen, then you may want to transfer your crypto out of the wallet's address as soon as you can If you're keeping your hardware wallet in your home, then installing a good home security system can help protect it from theft
Use a Different Password for Your Wallet
Thepageprevious few sections have detailed ways to defend yourself against an attack, but the next two, which I will go into in part 3 in next week's issue of Crypto Weekly, are about preventing yourself from becoming a target in the first place.
A signature is produced from within the wallet and sent to your internetconnected device, which allows you to do transactions without exposing your key to a possibly malwareinfected Hardwaredevicewallets also have PIN codes, so the attacker would still have a hard time getting your crypto if your wallet is physically stolen
Use a Hardware Wallet If Possible One of the best ways to protect your crypto is to use a hardware wallet, a USB device that can store your key vault It is designed so your seed words cannot be moved out of the device unencrypted
Security experts have been able to crack hardware wallets using extremely sophisticated techniques such as hardware implants, RF signals, and microcontroller memory rewrapping, but they needed to have physical access to the wallets in order to perform these hacks
But a browser-extension wallet such as Metamask, Coinbase wallet, or Brave wallet will ask for your seed words only the first time it is installed. If you're browsing the web and suddenly come across a window that looks like your wallet and asks for your seed words, then this is probably a malicious website The safest way to deal with this is to close the tab and flush your browser's cache.
First, if a hacker breaches a popular website you use, then they may be able to get your password hash and run cracking software on it That's more likely to happen to a popular website (like the Facebook breach last year) than it is to your own device
This file allows you to make transactions without having to enter your seed words each time, unless you are using a hardware wallet (more on that later) Key vaults are encrypted with passwords, unlike plaintext files. In the event that an attacker gets hold of the file, they'll find a bunch of useless gibberish inside It is much safer to do this than to store the file in plaintext.
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If you use a browser-extension wallet, it will ask you for your password frequently If you close your browser and reopen it, it will ask for your password� If you step away for a few minutes, your wallet will close and it will ask for your password when you come back� You'll get used to being asked for your password
If you think your wallet is malfunctioning, then you can uninstall it and reinstall it from a blank browser page That should help ensure you are interacting with your wallet and not a web app on a particular
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A hardware wallet has no Internet connection, so it's extremely difficult for an attacker to infect it with malware
Returning to the wallet and door question is difficult Quantum computers solve this problem in linear time Rather than a door, you could use a hardware tool with a massive lock � Each time you do a transaction with a hardware wallet, you have to connect it to your PC or mobile device through USB or Bluetooth
Your machine's security is crucial� A bunker is no more secure than its door, whether it's a bunker or not This applies to crypto� Also, locks are likely installed on the most secure doors, and every lock comes with a key Or, if you are using a cryptocurrency wallet, you need both public and private keys The holder of a wallet must prove they know the private key indexed to the public key without divulging any useful information In contrast, a malicious hacker would seek to obtain just this information
or having physical access to your PC, someone can do this In either case, it's a good idea not to store screenshots or notepad files on your PC that contain your seed words
To recap seed words, keep the following security measures in mind: Back up your seed words on a physical piece of paper Keep the backup in a safe place where it can't catch fire or get water damage� Don't keep plaintext copies or screenshots of your seed words on your PC Keep the location of your physical backup a secret If your device crashes, then use your seed words to recover your accounts Don't Enter Your Seed Words on a Website
You may be tempted to use a wallet password that is the same as one you use for a website, but there are several reasons to use a unique password for your wallet
We'll discuss that in the section on hardware wallets Did You Know: Sometimes attackers will sell "used" hardware wallets on places like eBay and Amazon These have often been altered to allow an attacker to get your seed words, so it's safest to buy the device directly from the manufacturer instead The biggest disadvantages to hardware wallets are inconvenience and cost Hardware wallet transactions often take longer than software ones, and, depending on where you keep your wallet, you may have to take time getting it from wherever it's stored Hardware wallets also cost between $50 and $150 If you're only storing a small amount of crypto, then you may not want to spend money on a hardware wallet If you have a sizable crypto holding, then it may be worth investing in Even though hardware wallets are physical devices, they still rely on software to make them work — and attackers can try to get you to install fake copies of the software for them Even if you don't use a hardware wallet, fake software is a threat you should be aware of Check the URL (Avoid Fake Software)
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Second, many people store their website passwords in plaintext inside their browsers If you do this and you're unlucky enough to have your device infected with malware, the attacker may be able to gain access to all your website passwords There is a nasty piece of malware called Redline Stealer that has gained popularity with cybercriminals for giving them exactly this kind of Losingaccess your website passwords is bad enough, but if your wallet password is the same as one you use for a website, then the attacker will also have access to your wallet password and can use it to decrypt your key vault (In these types of attacks, the key vault is usually also stolen )
Aside from hacking an exchange, probably the most common scam used to steal crypto is to convince a person to download a fake wallet or use a fake application Many scammers, for example, will offer fake versions of the popular Ethereum wallet, MetaMask They'll even advertise these fake wallets on Facebook or Google The best way to avoid this type of scam is to only download a wallet from the developer's official website, which means avoiding click-through advertisements on search engines or social media sites You may also want to avoid using searches in Google Play or the iOS App Store to find wallets, since these stores have been known to place fake wallets near the top of search results (likely unintentionally)
An attacker can use this to steal your crypto almost as easily as with a fake wallet
For example, maybe you want to swap your 1Dai for Viper on ViperSwap You navigate to what you think is the official website for ViperSwap, but you misspelled the URL when or clicked an
An attacker can also create a fake website that looks just like a legitimate one but has a slightly different spelling in its URL The site may lead to different smart contracts from the legitimate one, and these smart contracts may be malicious
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Your wallet password is probably the most important password you have, so you should make it unique Even if you use a strong, unique password, it's still technically possible for an attacker to use key-logging malware to record your keystrokes when you enter your password or pull your unencrypted vault data out of your PC's RAM These are very sophisticated techniques and, so far, there is no recorded case of a crypto user losing their seed words this way However, this type of attack may become more common as cryptocurrencies become more widely adopted How can you protect your crypto against even these kinds of attacks?
FYI: Most developers offer direct links to their mobile wallets from their official websites, so using a mobile app store search engine usually isn't necessary anyway Fake Web Apps Wallets aren't the only type of crypto software scam
advertisement posted by scammers when you searched for the site on Google� You're now on a fake version of ViperSwap, and, when you attempt to make the swap, you're told you need to approve your tokens to be spent by the exchange After you approve the tokens, all your 1Dai is drained from your wallet and you get nothing in return In most cases, this happens because the malicious "exchange" has a line of code that allows the owner to transfer your tokens to themselves If you had not approved it to spend your 1Dai, then the 1Dai contract would have blocked the transaction Because you made the approval, the token contract allowed the malicious Dapp to steal your tokens
Make sure you use only the official website for an app. In most cases, it will be the first site in the organic search results in Google, Bing, etc If there is any question, then you can check crypto news sites and other reputable sources to make sure you've got the right URL
Double check contract addresses. If you have to call an "approve" function to allow a Dapp to use your tokens, then make sure the contract address that pops up in your wallet is the same as the one mentioned in the developer's documents That way, you won't accidently approve a contract to spend your tokens that you didn't actually intend to approve You can send the native cryptocurrency of a network (ETH, BNB, AVAX, etc�) directly to an application, but you can't do it with a token Instead, you have to approve the app to take the tokens from your wallet It's important not to make this approval for an app you don't understand or trust� Some malicious sites are so bold that they may even tell you to give them your seed words Read on to find out more. Avoid Public Wi-Fi
Subscribe to a VPN Service
You may sometimes have to connect to the internet while you're not at home, and free public Wi-Fi at a restaurant or coffee shop may seem like a tempting solution When you're doing crypto transactions, however, you may want to avoid using open public Wi-Fi When you use open public Wi-Fi, other people nearby can easily intercept your internet traffic using Wireshark or similar tools
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With the information they receive, they can often tell if you're visiting crypto sites In some circumstances, they may even be able to view your transactions That won't necessarily allow them to steal your crypto, but a scammer may decide to pay a lot more attention to you if they see you making high-value crypto transactions or simply browsing crypto sites That's probably not the kind of attention you want Aside from avoiding public Wi-Fi, another way to avoid attention from scammers is to subscribe to a VPN service
Check the lock icon to the left of the URL If the site has been hacked, it will usually fail its SSL certification, which will cause the lock to appear red� Your browser may also warn you that the site is unsafe
You may want to subscribe to a VPN service and use it whenever you make crypto transactions VPNs usually cost Feature
Use only Dapps you trust. If you feel comfortable reading code, then you can look up the contract addresses in the developer's documents and find the code in a block explorer. In this case, you can verify whether there are weird "ownerOnly" or "adminOnly" functions in the Dapp that could allow the developer to steal your tokens If you don't feel comfortable reading Solidity, then just avoid Dapps that are too new to have been vetted by independent programmers
There are a few techniques you can use to avoid this kind of attack.
One thing to watch out for with any kind of online transaction, including crypto transactions, is a man-in-the-middle (MITM) attack Subscribing to a VPN service can help prevent these attacks
In an MITM attack, the hacker breaks your connection with a website you are visiting and injects their own device between you and the site� They then pass on your data to the site you intend to interact with, making it appear that you are connected as normal But now they can monitor everything you are doing MITM attacks can be used to find out what you are doing on a site The information a scammer gets may tip them off that you are a crypto user, which may lead to them using other methods to get to your crypto investments, such as showing you fake sites or convincing you to install a fake wallet
Be Wary of Emailed Files
One of the most common techniques attackers use to steal crypto is to get the user to open an email and download a malicious file. These emails are often cleverly made to look as if they come from a legitimate company
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The company mentioned in the email may be a real company, and the person's name may match the name of an actual person who works for that company
The email address, however, may be slightly different from the email the real company uses, which you probably don't notice because you are so excited someone from the company sent you an email So the email says, "We've looked at your LinkedIn profile, and we think you'll be a great match for this position Please fill out this .pdf with the time you are available for an interview and send it back to us as soon as you can " You download the .pdf file. When you open it, malware is installed on your computer.
Sometimesclosely the attacker will spoof the email address as well, so it will appear correct� To protect against this possibility, another option is to run antivirus on the file before you open it. Download the file but don't open it. Instead, right-click and select the option to scan the file with your favorite antivirus program That still won't give you 100% protection, because you may have downloaded a new piece of malware that your antivirus doesn't know about yet But if you absolutely must open the file, it at least gives you a fighting chance of detecting the malware and avoiding installing it
Withcurrenciesthatin mind, it looks as though, as long as the goodwill of its users backs it, cryptocurrency is here to stay Whether it eventually replaces fiat, or is brought further under government control and loses its decentralized aspect, is another matter entirely that remains to be seen� Please be safe out there, and just to let you know, part 3 is coming next week!
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Let's say an attacker monitors your internet traffic and finds out you are looking for a new job� They may send you an email that looks like a company with exactly the kind of position you are looking for�
between $5 and $15 per month, and they can be even less expensive if you pay for multiple months or years up front VPNs are also useful for streaming foreign TV shows and movies or for keeping your online activity hidden from the prying eyes of your ISP, so they have value beyond the crypto world
One way to protect against this type of attack is to use a different PC for your crypto transactions than you use to open emails You simply don't install your wallet on your main PC at all That can be expensive, though, so the other option is to simply be extra diligent every time someone asks you to download a file through email. Look at the email address, which will usually have a slightly different spelling than expected or there will be something else wrong with it once you examine it
At this point, the attacker can get your key vault if you are not using a hardware wallet They can steal all your website passwords and try them on your wallet in the hopes that one of them works They can use a variety of strategies to either steal your seed words or get you to give them up willingly
We've gone over numerous ways you can protect your crypto against this new breed of criminal, including using 2FA, withdrawing from an exchange, backing up your seed words, avoiding open public Wi-Fi, and using a VPN� In the future, scammers will likely come up with even more ways to steal crypto In the meantime, these are some of the most effective ways to protect your crypto One thing seems beyond question: nowadays, even so-called 'real' money isn't backed by anything more substantial than the goodwill of the government In 1971 then US president Richard Nixon began a series of measures that culminated in the dollar being taken off the gold standard two years later, paving the way for fiat
Ultimately, the best way to protect against malware is to use a hardware wallet If you can't get one, though, these techniques can also help Final Words The crypto market continues to hit new highs as more people download wallets and join networks for the first time, but this rise in activity also leads to an increase in criminals who seek to take advantage of the new entrants�
45www.cryptoweeklymag.com August 2022 | Volume 37 Crypto's an asset every investor must have in their portfolio, says Morgan Creek's Mark Yusko of weekthe NFT Espresso Systems' Jill Gunter and Mark Yusko of Morgan Creek Capital Management join the 'CNBC Special: Return of the retail trader' to discuss the cryptocurrency comeback among retail traders
'committed'ownersdetervolatilityRecentdoesn'tcurrentfrombeing
Despite the cryptocurrency market crash and burn this year, cryptocurrency enthusiasts have remained resilient Crypto lenders like Celsius Network are in severe financial trouble, and other digital assets like TerraUSD are nearly worthless At the same time, Bitcoin last traded at around $20,000, less than 1/3 of its all-time high Despite all that, the percentage of people who are still interested in purchasing cryptocurrency has remained remarkably steady
Robert Stone
Cryptocurrency owners are particularly optimistic about the future, with 45% expecting their finances to improve in the next 12 months U S adults and highincome Americans forecast improved finances of only 27.1% and 29.5% for those periods, respectively Investing in riskier assets like cryptocurrencies may be a result of this more optimistic mindset "Partly because of their crypto investments " Who owns crypto? Most crypto owners are younger, white, and male, but they are surprisingly diverse as well Compared to the general population, cryptocurrency Feature
A survey of 4,600 U S adults found that 24 are considering buying cryptocurrency within the next month Compared to January, that's only a few points below 27% Is there a reason for this resilience? Optimism The crypto market remains somewhat optimistic despite soaring inflation and plummeting asset valuations� Compared to the average American, crypto users have 17 4 points higher confidence.
Are you thinking of investing in crypto?
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There are many reasons for a downbeat economic outlook that don't apply to the 43% of crypto owners who are millennials The future of digital money is also bright to some "More than a third of owners use it in some way or another as a payment method," said Charlotte Principato, a Morning Consult financial services analyst
During the next six months, Morning Consult data shows that the average cryptocurrency user expects a price rebound to about $38,000� At last check, Bitcoin was hanging in the area of It's$20,000despite Brian Armstrong, chief executive officer of Coinbase, predicting a long "crypto winter" as a result of a "Thisrecessiontrend shows no signs of reversing, although ownership growth may stall if inflation triggers a recession and a "crypto winter," according to Morning Consult's report
How does this affect us?
owners come from a more diverse ethnic group Compared to 18% of the general population, nearly a quarter (24%) are Hispanic The majority of cryptocurrency owners are nonwhite, with 41% identifying as such The average household income of cryptocurrency owners is below $50,000, and 40% are Gen Xers or older Is there a reason why crypto users are so optimistic? Youthful optimism plays a part in it� Pessimism is more prevalent among older Americans. Their fixed incomes, health risks, and negative memories of high inflation make them more likely to live on fixed incomes.
The continued interest in cryptocurrencies means that this asset class is here to stay, and that is what most consumers see it as Principato said retail investors are more measured longterm users when they look at ownership consistency and intent to purchase
Since institutional investors leveraged their holdings, she said they are to blame for the recent volatility Despite crypto's volatility, consumers around the world embrace decentralized digital assets Leaders cannot dismiss them as a passing fad
According to Principiato, those who invest for their retirement are not scared off by the recent plunge because they're in it for the long haul� Despite the recent plunge, she said, their investment is still around breakeven or even up, despite having held Bitcoin for about three years Because of this, most owners did not buy at the highs last fall There is just as much commitment to staying the course even among those with less discretionary income Cryptocurrencies have a low entry barrier compared to other markets, which motivates them to make money "People with very little for investments can invest with just $1 It's capturing people who don't have much for investments " What is the future of Bitcoin prices according to these crypto optimists?
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Why do they own and hold crypto? Sixty-six percent of respondents hold it as an asset in their portfolios to make money, but more than a third said they occasionally use it to make payments
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How does Tornado Cash work, and why is it important?
Anyone considering investing in privacy coins should take note of the Tornado Cash episode� The casual investor will Feature
This is a complicated issue that requires a lot of explanation People, organizations, and other entities are usually subject to restrictions and prohibitions imposed by the Office of Foreign Assets Control (OFAC) Whenever it does impose penalties, it focuses on foreign nations that are in the headlines for all the wrong reasons, such as Iran, North Korea, and Russia On the blockchain, however, pieces of code are not typically prohibited In this case, that's exactly what happened since Tornado Cash is essentially just a bunch of smart OfACcontractsdid not pursue the developers who wrote the code, and even lawyers are puzzled by this This has resulted in Tornado Cash's site going down, as well as the open-source mixing protocol It is possible to face jail time or fines if you try to use Tornado Cash right now It is now equivalent to violating U S sanctions against trading with the enemy to attempt to anonymize your crypto transactions online
The market value of privacy coins such as Monero and Zcash regularly ranks among the top 50 on CoinMarketCap Tornado Cash, Despite not punishing privacy coins directly, the U S government restricted the type of blockchain that enables them A piece of computer code that allows anonymous crypto transactions was blacklisted by the Treasury Department on August 8
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The Tornado Cash Blacklisting: Is there a future for privacy coins?
Historically, privacy coins have been a polarizing issue in the crypto industry Many people are concerned about keeping their online identities private and don't want their crypto transactions to be visible to the public
Consequently, Tornado Cash can no longer be accessed by U S individuals It could be a disaster for privacy coins, especially since Tornado Cash has been linked to money laundering and cybercrime
The impact on privacy coins
A popular "crypto mixer" crackdown could have huge implications for privacy coins.
likely have a harder time buying and selling them You can do this on some cryptocurrency exchanges, but not all� Cryptocurrency exchanges have always worried about privacy coins being used for illicit purposes, and Tornado Cash adds to that concern
The new attack on crypto mixers reminds me of the early days of Bitcoin when people were worried about Bitcoin's nefarious uses Do you remember when Bitcoin had a very shady reputation with the government during the Silk Road days? Likewise, the U S government has reasons to be concerned about "crypto mixers" and the potential for money laundering today, just as it had reasons to be concerned about Bitcoin nearly a decade ago Because of this, I believe privacy coins have a bright future
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In spite of Tornado Cash, privacy coins have held steady Over the past seven days, Monero has gained 3 4%, while Zcash has gained 15% Furthermore, Tornado Cash has received support from a number of high-profile crypto figures. The co-founder of Ethereum, Vitalik Buterin, has used Tornado Cash for legitimate purposes in the past By mixing his crypto wallets, he hid the movement of his Ethereum from the Russian government when he donated money to Ukraine Crypto transactions should be kept private in some situations� How privacy coins will change the world
Privacy coins are just like any other crypto, just with an additional layer of security and privacy� Investing in privacy coins might be risky right now, but they aren't going anywhere Like Bitcoin, they will likely become mainstream at some point In the meantime, you should keep an eye on regulatory developments in Washington, D C Cryptocurrencies have always been subject to regulatory risk If you want to invest in privacy coins, you should keep this in mind
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