Life after COVID: Will it affect the Crypto Industry as well?

Life around us has changed, forever!  This virus has changed the way we are currently living in the world. More–even, we are not going back to life the way we were very soon.  The COVID-19 pandemic has impacted financial markets all over the world, including that of cryptocurrencies. The very essence of well-established global businesses and the world’s financial system is in danger. The companies have to make all the preparatory arrangements to maintain the standards of safety while undergoing normal business chores.

We are all in this together and let’s be mindful of the fact that the virus is still among us, we should work on crafting a simpler, yet fulfilling way of life that promises a fair and equitable future for all. We are all in this together.

The COVID 19 pandemic has impacted the crypto markets across the globe. Among the many important innovations that the pandemic will push forward are blockchain and cryptocurrency Cryptocurrencies will be increasingly used as non-correlated investment options and will drive further interest in blockchain-based financial instruments with a new definition of speed, transparency, and reliability.

Before this pandemic stepped into the play, people had no choice but to be caged into the traditional currency system. The Crypto protocol is not controlled by anyone and makes it possible for everyone to store and transfer value in a currency that is resistant to manipulation by global financial institutions. This kind of financial system is bound to be progressive in nature when there is a global restriction in the finance industry. More & more users are now getting inclined towards the crypto investment. Growing institutional interest can also be easily traced.

The world is experiencing endless economic disasters due to the fragility and instability of the global financial system; Cryptocurrency is a key to secure the financial future for millennials.

Tim Draper, an American venture capital investor, and billionaire stated his intentions of moving his portfolio into the crypto World,” ‘presuming that “bitcoin in 2022 or the beginning of 2023 will hit $250,000”. Finally, Draper has recently given another optimistic forecast about Bitcoin - stating that he thinks “when the world comes back, it will be Bitcoin, not banks and governments that save the day.”

The crypto industry will continue to struggle amid all the uncertainty, which has been further highlighted by the COVID situation. Hopefully, a few years down the line, the change in the narrative will be more of a positive one.

Get rewards by staking your Cryptocurrency

WHAT IS STAKING?

Staking is a process of holding funds in a cryptocurrency wallet to support the security and operations in a blockchain network. Staking Rewards enables passive income opportunities with digital assets. Cryptocurrency staking is one of the easiest and most effective ways to earn additional income through blockchain and easily increase your portfolio. Staking has attracted many investors to play it safe in the risky business of crypto trading. For example, the way you have an option for fixed deposits with your bank and when people hold money in their bank account or reserve a particular amount with the bank for investment, the user receives some amount of interest from the bank. Similarly, by staking your cryptocurrency, you gain the ability to generate an extra income. Some coins may require a bonding period like fixed deposits in the bank. The crypto profits resulting from staking normally depends on the amount of time one holds the cryptocurrency. The longer you stake, the higher are your gains.

The staking returns are usually an end product of Proof of Stake (POS) Consensus Algorithm where instead of needing the energy to create new blocks, it does it with the staked coins.

Types of Staking:

Staking is divided into two broad categories; PoS (Proof-of-Stake) and DPoS (Delegated Proof of Stake). POS works by freezing the stakeholder’s coins for a particular period to validate transactions done through the network whereas DPoS is a delegate that is elected by stakeholders and assigned to become a validator or block producer. In the event of sharp practices, (confirming a fraudulent transaction) a penalty is being imposed.  

BENEFITS:

Staking is continuously growing in ease and popularity. One does not need any knowledge of Cryptocurrency trading and of course, there is no need to study complex charts for the user to make a profit. 

·         The foremost advantage of staking is the opportunity to generate income from holding crypto. The value of the staked coin increases with the market valuation of the coin going higher.

·         Staking provides an opportunity for the investor to be an active participant in the favorite blockchain project.

·         The user can yield an extra benefit of reinvesting the “profits” to increase the staking portfolio.

·         No Cryptocurrency mining equipment is required as there is no requirement of the use of mining hardware. 

How are staking rewards calculated?

The reward depends on the total staked percentage, however, a different way of calculation of staking rewards may be adopted by every blockchain network.

Some are solely adjusted on factors of each separate block, taking into account many different factors. These can include:

·         The count of coins the validator is staking 

·         The duration from which validator has been actively staking

·         The number of coins staked on the network in total 

·         The inflation rate

·         Other factors

·         Some may distribute staking rewards determined at a fixed percentage.

Conclusion:

There is no doubt that staking offers you a guaranteed and predictable source of earning more crypto coins with time. It’s worth keeping in mind, though, that staking isn’t entirely without risk. Locking up funds in a smart contract is prone to bugs, so it’s always important to maintain high security of your account and use high-quality wallets. It is just a secure way to multiply your crypto assets.

Safeguard yourself from Crypto Scams

Technology: A boon, or A curse. It is often seen that your biggest strength can become your biggest weakness. This proverb goes hand in hand with our daily life as well as in the crypto world, other than the traditional banking systems. The Cryptocurrency companies are making constant efforts to make the trading and transactions fast, safe as well as secure for all the traders. 

However, just like the traditional banking world, the cryptocurrency market is no new to scammers and fishing attacks. Thus, it becomes an absolute priority to ensure one’s safety.

Cryptocurrencies are often kept safe in wallets, which indeed stores public as well as private “keys” or “addresses” which can be used to send or receive the cryptocurrency. Although, Cryptocurrency is globally known to people it is still not understood by most people. Even there is so much information available about this in media still, people fail to understand the basic concepts which make them volatile to crypto scams and frauds. 

As the companies are taking enough measures to ensure more safety to their investors, so are the scammer’s improving their tactics to loot more money. In the recent past, there have been measures have been taken to avoid such scams and frauds but there is no particular to tell any trustworthy platform. Even social platforms like Facebook and Google have been banned to allow running any ads for cryptocurrencies as it is really difficult to trust the sources. 

Let us take you to some of the commonly occurring cryptocurrency scams: 

Exchange scam: 

There is numerous exchanges available to trade on their platform and it also allows you to make payments in USD or other currencies. You must research before putting your money on any exchange pretty well, (provided take advice from a known source) and understand its withdrawal policy. These exchanges have very strict withdrawal policies and often restrict you to make any withdrawals. Make sure that the contact numbers and email ids are active and they have active customer support to address your queries. 

Fake free Promotion: 

There are numerous messages occurring in your inbox or DM’s telling you about free promotions and giveaways. These are supported by a group of people who will immediately reply in their comments on how they deposited on transferred the money and got back huge returns instantly. They will leave various addresses for you to deposit money, make a transaction, or deposit some sort of account activation fee through various addresses. The amount transferred or deposited will be gone before even you will know it. Beware of such links or messages and always check with the official websites and handles.  

Impersonation Fraud

As cryptocurrency industry is digital based, many scammers have started impersonating other high-profile investors. They try to contact your through various social media channels and promise to help you in investing and getting your stakes up. They will ask you to create an account on their given platforms or will ask you to share your address and user details. Such people may contact you on Facebook, Twitter, LinkedIn, WhatsApp, etc. always remember, you don’t have to respond back to them. Big or real investors will not have to approach you like this.

You can always search and check for their profiles or their website URLs. If you will inquire, you will understand that these are fake profiles. These people will in no time steal your money and run away with it without leaving a trace of their transactions. Hence, beware and don’t trust such fishing direct messages.