HKVAX Becomes Hong Kong’s Third Licensed Crypto Exchange for Retail Investors
The Hong Kong Virtual Asset Exchange (HKVAX) has achieved a giant stride, becoming the third approved crypto exchange for retailers in the Chinese region. Notedly, the Region’s Securities and Futures Commission (SFC) granted the exchange’s approval ahead of sixteen other trading platforms, awaiting approval from the commission. In one of our previous news articles, Crypto com, Bullish, and nine other trading platforms reportedly met the criteria to operate as “deemed to be licensed.” Hence, these exchanges have been operating amid restrictions, pending complete approval. Meanwhile, the SFC warned that investing with the trading platforms could be risky as they are yet to meet regulatory standards. Nature of License Approval According to HKVAX’s official website, the exchange obtained three distinct licenses. They include Type 1 (dealing in securities), Type 7 (providing automated trading services), and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). Notably, the Type 1 and Type 7 endorsements came from the SFC. All these approvals are crucial for trading platforms intending to operate within Hong Kong jurisdictions. With its endorsement, HKVAX will join the likes of OSL and HashKey to offer retail crypto trading services to Hong Kong. For context, OSL license approval happened in 2020, while that of HashKey was in 2022. Both occurred under an old opt-in system. Meanwhile, retail trading began in August 2023 in Hong Kong, with HKVAX becoming the first exchange to obtain license approval under the existing laws. HKVAX Aims to Become A Leader in Hong Kong’s Virtual Asset Industry Speaking on the operational permit approval, Dr. Anthony Ng, a Co-Founder and Chief Executive Officer (CEO) at HKVAX, remarked, “Obtaining the license affirms HKVAX and demonstrates Hong Kong’s resolve to lead in the virtual asset industry. We’re part of a financial landscape revolution, aiming to establish Hong Kong as the STO and RWA center for Asia and beyond.” For context, the STO and the RWA in the CEO’s statement above meant Security Token Offering and Real World Asset tokenization, respectively. Therefore, it underscores the trading platform’s desire to become a leading entity in Hong Kong’s digital market.
What Is the Safest Cryptocurrency?
There is no such thing as an ultimately “safe” investment, and the cryptocurrency market is no exception. Highly volatile and still relatively young, the entire asset class carries inherent risks. But that doesn’t mean all cryptocurrencies are created equal. Some cryptocurrencies are more stable and secure than others, thanks to robust underlying technology, wide adoption, and strong community and developer support. This article will explore what makes a cryptocurrency relatively safer and highlight some key players that have earned investors’ trust. Recommended reading: Cryptocurrency in Nigeria: Risks and Opportunities for Growth Key Takeaways Top Safest Digital Assets When discussing the safety of digital assets in the cryptocurrency market, it’s essential to look at those with established track records, robust security measures, and strong community support. Here are some of the top digital assets that are often regarded as safer options within the volatile crypto space: Bitcoin (BTC) There’s a clear upward trend in the value of Bitcoin, with significant volatility marked by sharp rises and falls. Notably, there’s a peak before 2021, a drop, and another steep climb approaching 2024. The most recent price indicated is around $62,219.47. Beneath the line graph are colored bars representing the trading volume—green bars for days with a closing price higher than the opening, and red bars for the opposite. The volume shows variability, with some periods exhibiting higher trading activity. Market Cap: $1.4 trillion Year-over-year return: 150% The undisputed grandfather of cryptocurrency, Bitcoin remains a dominant force with a market capitalization exceeding any other crypto. Its secure blockchain network, built on a proof-of-work consensus mechanism, is highly resistant to hacks. However, Bitcoin needs help with scalability and energy consumption. Its mining process requires vast computing power, raising concerns about environmental impact. Its widespread adoption and network size make it one of the safest cryptocurrencies in terms of security and market stability. Ethereum (ETH) Market Cap: $434.8 billion Year-over-year return: 95% The second-largest cryptocurrency by market capitalization, Ethereum (ETH), introduced smart contracts, self-executing contracts with the terms of the agreement directly written into lines of code. The Ethereum network facilitates transactions and complex applications in finance, gaming, and more. It recently transitioned from PoW to proof-of-stake (PoS) with its “Merge” update, aiming to reduce its carbon footprint and improve scalability and security. In PoS, validators stake their ETH to become responsible for processing transactions and maintaining the network, reducing the likelihood of attacks due to the high cost of acquiring enough tokens to manipulate the network. Recommended reading: The Impact of Crypto Investments on Your Credit Score Solana (SOL) Market Cap: $72.5 billion Year-over-year return: 120% (High Volatility Warning) Solana (SOL) is known for its high throughput and fast transaction speeds, thanks to its unique hybrid protocol combining proof-of-history (PoH) with proof-of-stake (PoS). PoH helps create a historical record that proves that an event has occurred at a specific time, which is crucial for the efficiency of the consensus between nodes. While offering significant benefits in terms of scalability and speed, Solana has faced challenges regarding network stability and security, including several high-profile network outages. Cardano (ADA) Market Cap: $58.2 billion Year-over-year return: 80% Cardano (ADA) sets itself apart through a research-oriented approach to development, utilizing a process of peer-reviewed research to underpin updates and changes to its blockchain. Cardano’s Ouroboros PoS algorithm is designed to be more secure and less energy-intensive than Bitcoin’s PoW algorithm. This approach to development may make Cardano particularly robust against attacks as it continues to evolve. Recommended reading: Crypto vs Bonds: Which One Belongs in Your Investment Mix Polkadot (DOT) Market Cap: $34.1 billion Year-over-year return: 95% This blockchain protocol aims to address the issue of interoperability between different blockchains. Polkadot allows independent blockchains to connect and securely communicate with each other, fostering a more interconnected crypto ecosystem. Like Solana and Cardano, Polkadot’s technology is evolving, and its safety profile is being established as the project matures. Chainlink (LINK) Market Cap: $16.3 billion Year-over-year return: 70% Chainlink (LINK) serves as a decentralized oracle network that aims to connect smart contracts with data from the real world. Since the accuracy of the incoming data can compromise the security of smart contracts, Chainlink provides tamper-proof data feeds to ensure that the execution of contracts depends on reliable and secure information. Litecoin (LTC) Market Cap: $14.2 billion Year-over-year return: 65% Litecoin (LTC) was developed as a lighter alternative to Bitcoin, intending to allow more transactions to be processed faster. It uses the script algorithm as its proof-of-work, which is more memory-intensive than the algorithm used by Bitcoin. This was intended to allow more users to participate in mining and reduce the efficiency advantage of using custom hardware, contributing to decentralization and security. Ripple (XRP) Market Cap: $12.8 billion Year-over-year return: 40% Ripple (XRP) is both a platform and a digital currency facilitating rapid cross-border transfers. Unlike many cryptocurrencies, it does not use a traditional blockchain but a distributed consensus ledger utilizing a network of validating servers and crypto tokens called XRP (Ripples). This structure allows for speedy and efficient transactions, which is ideal for international finance. USD Coin (USDC) and Tether (USDT) Market Cap: $ 32.6 billion (USD coin), $107.8 billion (Tether) Year-over-year return: 0% These cryptocurrencies are pegged to the US dollar, aiming to offer price stability in the often volatile crypto market. They function as a bridge between traditional fiat currencies and the digital asset space. However, the stability of these stablecoins relies on the assets held in reserve by the issuing company. It’s crucial to understand how these reserves are held and audited to assess the overall safety of these investments. Binance Coin (BNB) Market Cap: $83 billion Year-over-year return: 84% The Binance cryptocurrency exchange created Binance Coin (BNB), one of the largest in the world. It can pay transaction fees on the Binance platform, benefiting users from discounts. The security of BNB is strongly linked to the security practices of the Binance exchange. Dogecoin (DOGE) Market Cap: $22.1 billion Year-over-year return: 73% Dogecoin (DOGE) began as
What is Crypto Slippage and Why Should You Care?
Slippage refers to the difference between the expected price of a trade and the actual executed price. Even minor discrepancies can significantly impact trading costs and losses. This article will explore the concept of crypto slippage, explaining what it is, how it works, and how you can use it to your advantage. If you want to master this aspect of trading, this guide is for you. Recommended reading: Best Crypto Faucets to Try in 2024 Key Takeaways What is Crypto Slippage? As a trader, you must have heard the word “slippage” as it is a commonly used term in the crypto world. It is simply the difference between the price at which you want to buy or sell the property and the market price. For example, let’s say you wanted to buy 1 BTC for $70,000, but a sudden market fluctuation caused the price to rise to $80,000. The fallout in this case would be $10,000. So in other words, Slippage refers to the difference between the expected price of a trade and the actual executed price of the trade. Does Slippage Matter? The importance of slippage in the crypto market depends on your goals. Are you simply observing the market, or are you here to make a profit? Most likely, it’s the latter. If your goal is to profit, then understanding crypto slippage is crucial. Slippage can significantly affect your trading outcomes and could be the difference between success and failure. For instance, if you place a large market order and the price moves against you before the trade is completed, you might end up with a less favorable price than expected, leading to potential losses. In simple terms, more slippage translates to higher costs, which can eat into your profits and increase your trading expenses. Understanding and managing slippage is essential to minimizing its impact on your trades. Why does Slippage happen? Slippage can happen in any trading market but is most likely in markets with low liquidity, high volatility, and low trading volumes, such as cryptocurrencies. Especially in the crypto market, slippage can happen for various reasons e.g. Low liquidity Large trades can be difficult to process without affecting the price of the assets in a situation of fewer buyers and sellers. This can result in a higher slippage rate. High volatility The crypto market is known for its volatility with prices changing rapidly over a relatively short period. If there is a sudden change in the market value of the asset, this can cause it to fall. Network congestion The Blockchain Network can become congested because of high trading traffic making it slow in transaction processing times and potential price changes during the trade. Order size The size of the order can affect the result of the slippage. This is like trying to pour a large jug of water into a small funnel – not all of it can go through at once. For example, Large orders might not be filled at a single price point, especially if the market does not have enough volume to process the trade. This leads to parts of the order being filled at a highly less favorable price. Recommended reading: Adventure Gold Price: How to Maximize Your Crypto Returns Types of Slippage There are two types of slippage in the trading world and both directly affect your experience. Positive Slippage: This happens when a trade is processed at a higher price than the one initially intended. This mostly occurs in a fast-moving market where prices change rapidly. Assume you placed a buy order at $500 for a cryptocurrency but the market volatility, caused the actual order of the market to execute at $450 instead, positive slippage has occurred. This occurrence is actually to your advantage because it results in increased profit as they effectively enter or exit a position at a better price than expected. Negative slippage: Conversely, a negative slippage occurs when a trade is executed at a weaker-than-expected price. This can result from higher volatility, lower rates, or larger liquidity than the available rates in the market. For example, you place an asset to sell at $1000 but due to market fluctuations, the order is sold for $980 instead, and negative slippage has occurred. Negative slippage can reduce potential gains or increase losses, especially if reliance is placed on accurate swades. Recommended reading: Bounce Price: Key Metrics Every Investor Should Monitor in 2024 How to calculate Slippage If you have an understanding of what Slippage is, you should have already figured out how to calculate it. It simply considers the difference between the current market price and the actual executed price. i.e. Slippage = Current Market Value – executed price. For example, if you placed a buy order for 1 Bitcoin at $12,000 and it was filled at $10,000, then your slippage would be $2000 (12,000-10,000). In this case, you received a lower price than expected due to slippage. The Slippage percentage can also be calculated by subtracting the current market price and the executed trade price and dividing it by the current market price. i.e. Slippage Percentage = (Current Market Price – Executed Trade Price) / Current Market Price. For example, if you placed a buy order for 1 Bitcoin at $12,000 and it was filled at $10,000, then your slippage would be $2000 (12,000-10,000). The slippage percentage, in this case, would be 16% (2000/12,000). This means that you received a lower price than expected. This makes traders use tools and resources to help them calculate slippage. Many cryptocurrency trading platforms offer slip calculators that allow users to input their trading parameters and calculate expected slippage such as online slippage calculators that use live market data to calculate estimated slippage in trades that can provide insight into potential risks associated with trading before full participation. Methods for reducing Slippage From observation, slippage has a lot of effect on you as a trader it holds sway to the probability of profits and losses. It cannot be avoided
How to Choose the Best Non-Custodial Wallet for Your Crypto
Securing your digital assets has become more crucial as cryptocurrency grows and evolves. A non-custodial wallet is one of the most effective ways to protect your crypto. But with so many options available, choosing the best non-custodial wallet for your needs can be tasking. In this article, we’ll explain non-custodial wallets and explore their benefits. We will also provide a step-by-step guide on choosing the best one for your crypto assets. Related: How to Transfer Funds from Crypto Card to Fiat Wallet in 2024 Key Takeaways What is a Non-Custodial Wallet? A non-custodial wallet is a type of cryptocurrency wallet that allows users to store, manage, and control their digital assets. This is done without relying on a third-party service to hold their private keys, unlike custodial wallets, typically offered by exchanges and other financial institutions. The non-custodial wallets give users full ownership and control over their funds. Non-custodial wallets are often referred to as “self-custody” wallets. This is because the users are responsible for managing their own private keys and securing their funds. This approach provides a higher level of security and autonomy, as users are not reliant on a third-party service to protect their assets. Benefits of Non-Custodial Wallets So, why should you choose a non-custodial wallet over a custodial one? Here are some of the key benefits: Related: What is The Difference Between Crypto Exchanges And Wallets? Types of Non-Custodial Wallets There are several types of non-custodial wallets available, each with its own unique features and benefits. Here are some of the most popular options: Hardware Wallets Hardware wallets are physical devices that store your private keys offline. They’re considered the most secure option for long-term storage of significant amounts of cryptocurrency. Pros: Cons: Examples: Ledger Nano S, Trezor Model T, KeepKey Software Wallets Software wallets are applications you can install on your computer or smartphone. They offer a balance between security and convenience. Pros: Cons: Examples: Exodus, MyEtherWallet, Trust Wallet Paper Wallets Paper wallets are physical documents containing your public and private keys, often in the form of QR codes. Pros: Cons: Web Wallets Web wallets are browser-based interfaces that allow you to interact with your cryptocurrencies directly from a web browser. Pros: Cons: Examples: MetaMask (browser extension), MyEtherWallet (web interface). N.B: Need help choosing a more secure wallet? Check out our guide for recommendations. Ways to Choose the Best Non-Custodial Wallet With so many non-custodial wallets available, choosing the best one for your needs can be overwhelming. Here are some key factors to consider: Security Security should be your top priority. Look for wallets with: Supported Cryptocurrencies Ensure the wallet supports the cryptocurrencies you own or plan to acquire. Some wallets are specific to a single blockchain, while others support multiple coins and tokens. User Interface A user-friendly interface is crucial, especially for beginners. Look for wallets with: Development and Community Support Choose wallets with: Backup and Recovery Options Look for wallets that offer: Integration with Other Services Consider wallets that integrate with the following: Mobile Access If you plan to transact on the go, ensure the wallet has a robust mobile app. Fee Customization For blockchain networks with variable transaction fees (like Bitcoin and Ethereum), look for wallets that allow you to customize fees to balance cost and confirmation speed. Related: Cold Storage vs. Hot Wallets: Which One Is Safe to Use? Top Non-Custodial Wallets for Crypto Based on our research and evaluation, here are some of the top non-custodial wallets for crypto: Setting Up Your Non-Custodial Wallet Once you’ve chosen a wallet, follow these general steps to set it up: Common Pitfalls to Avoid When using non-custodial wallets, be aware of these common mistakes: Final Tip Choosing a non-custodial wallet for your crypto is important and requires careful consideration. Ultimately, the best non-custodial wallet for your crypto is one that provides a balance of security, ease of use, and compatibility. By choosing a reputable and reliable wallet, you can enjoy the benefits of self-custody and take control of your digital assets. FAQs
Solana vs Ethereum: Which Ecosystem is the Best
Solana and Ethereum have become major forces in the world of digital currencies. As both platforms continue to gain attention, they play key roles in the blockchain space. The competition between Solana and Ethereum is intensifying for investors and developers seeking the best platform. This comparison will explore their main features, advantages, and drawbacks, giving you a clear picture to help you choose wisely. Key Takeaway Background Information Before discussing their technical and practical comparisons, it is crucial to understand the basics of Solana and Ethereum, which are among the best cryptocurrencies. This section overviews their histories, key features, and differences. What is Solana? Solana, founded in 2017 by Anatoly Yakovenko, was developed to address the scalability issues other blockchain platforms face. The network officially launched in March 2020 and quickly gained traction due to its high throughput and low transaction costs. In 2024, Solana, according to a report by Statista, Solana is dominant and recognition is triple that of 2021. Recommended reading: Top 10 Solana Projects With Immense Potential in 2024 Key Features of Solana These are key features and benefits of the Solana blockchain network: What is Ethereum? Ethereum, proposed by Vitalik Buterin in late 2013, is a decentralized platform that enables the creation and operation of smart contracts and decentralized applications (dApps) without downtime, fraud, or third-party interference. Ethereum was officially launched on July 30, 2015, and has since become the most widely used blockchain platform. Key Features of Ethereum Core Areas of Comparison between Solana vs Ethereum Let’s take a look at some of the major areas to compare. A. Transaction Speeds & Fees Ethereum Ethereum’s transaction speeds and fees have been a significant point of discussion, especially given its network congestion issues. Historically, Ethereum has struggled with transaction throughput, averaging around 15 to 30 transactions per second (TPS). This limitation is due to the block size and Ethereum’s consensus mechanism, Proof of Work (PoW). As of mid-2024, transaction fees on Ethereum can be quite high, especially during peak usage periods. Gas fees, which are the costs of executing transactions or smart contracts, have ranged from a few dollars to over $100 during times of high network demand. For instance, in May 2021, Ethereum gas fees surged to an average of $70 per transaction, driven by high DeFi activity. Solana In contrast to Ethereum, Solana has been designed to address these speed issues. Solana boasts a much higher transaction throughput, with capabilities exceeding 65,000 TPS. This is due to its innovative Proof of History (PoH) combined with Proof of Stake (PoS). This architecture allows Solana to process transactions rapidly and affordably. Transaction fees on Solana are a fraction of a cent, typically around $0.00025 per transaction, making it significantly cheaper than Ethereum. For instance, in early 2024, Solana’s average transaction fee was approximately $0.01, even under heavy network load. B. Scalability Ethereum Scalability has been one of Ethereum’s most pressing issues. The Ethereum network, as it stands, cannot scale to meet the demands of its growing user base and the increasing complexity of decentralized applications (dApps). Ethereum 2.0, which is being rolled out in phases, aims to address these issues by transitioning from PoW to PoS and introducing shard chains. Ethereum 2.0 is expected to significantly improve scalability, potentially increasing TPS to thousands and reducing transaction fees. The full impact of Ethereum 2.0 is still being realized, and the transition is ongoing. Solana Solana is designed with scalability as a core feature. The network’s architecture allows it to handle a high volume of transactions without compromising performance. This is made possible by its Proof of History Consensus prospect. Solana’s PoH technology, which timestamps transactions and sequences them efficiently, coupled with PoS, enables it to achieve high throughput. Solana’s ability to handle thousands of TPS positions it as a strong candidate for applications requiring high scalability. The network’s throughput and low latency make it suitable for real-time data processing and high-frequency trading applications. Recommended reading: ERC-721: The Ethereum NFT Standard Explained C. Developer Ecosystem & Security Ethereum Ethereum has a well-established developer ecosystem with a large and active community. It benefits from a wealth of development tools, libraries, and frameworks that facilitate building and deploying smart contracts and dApps. Ethereum’s Solidity programming language is widely used and supported by numerous development environments. Also, security has been a strong suit for Ethereum, though it has its challenges. The Ethereum network has undergone several security audits, and its smart contracts are generally considered robust, although vulnerabilities have been discovered in specific contracts. The Ethereum community and various development teams continuously work to improve security and address vulnerabilities. Solana Solana’s developer ecosystem is smaller but growing rapidly. The network offers a set of development tools and libraries, although it is not as extensive as Ethereum’s. Solana’s native programming language, Rust, is gaining popularity for its performance and safety features. Security on Solana is an evolving area of focus. As a newer platform, Solana has faced some security challenges, such as network outages and exploits, but these issues are being addressed as the platform matures. The security of the network is generally considered good, but Solana’s relative newness means it is still undergoing rigorous testing and development. D. Use Cases Ethereum Ethereum is renowned for its versatility and has been the platform of choice for various applications. Its ability to handle complex smart contracts and dApps makes it ideal for projects in the decentralized finance (DeFi) space, non-fungible tokens (NFTs), and other use cases requiring robust security and a rich development environment. Ethereum’s infrastructure supports high-value transactions and complex logic, which is why it is preferred for high-stakes financial transactions and digital art markets. Prominent projects such as Uniswap, MakerDAO, and OpenSea have extensively used Ethereum’s capabilities. Solana Solana’s high-speed and low-cost transactions make it particularly well-suited for applications requiring large transactions or rapid processing. This includes micropayments, which can be prohibitively expensive on Ethereum due to high fees, and play-to-earn games, where fast transaction processing is crucial for real-time