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  • How to Fix Stuck Transactions on Ethereum

    How to Fix Stuck Transactions on Ethereum

    Ethereum is one of the world’s most versatile blockchains, with functionality that supports innumerable decentralized applications and blockchain assets. Although conceived in 2013 by Vitalik Buterin, Ethereum did not launch until 2015, it has since been at the forefront of blockchain utility, especially with the recent popularity of non-fungible tokens (NFTs).

    An NFT is an asset on a blockchain that is completely verifiably unique and therefore irreplaceable. Today, many people use NFTs to digitize real-world assets and expose these assets to a global audience. NFTs are very popular in art and photography, as they allow creators to access a wide pool of potential fans and buyers. Currently, most NFTs are on the Ethereum blockchain.

    Ethereum is also the most popular network for decentralized applications (DApps). These apps are powered by smart contracts that drive several functions on the blockchain using specified agreements and conditions. Since the NFT and DApp markets exploded, the Ethereum network has become very busy, and sometimes leaves some transactions stuck for long periods.

    Check out our video on how to fix stuck transactions on Ethereum:

    FIX stuck transactions on Ethereum

    Why Do Some Transactions Get Stuck?

    A delay in processing simply means that no miner has picked up the transaction yet. All Ethereum transactions require a gas fee (gwei), a processing fee set to incentivize miners to pick up and process the transaction. This fee is never static, as it depends on the network congestion at transaction time. Sometimes, gas fees may be very high if there are a lot of people transacting simultaneously.

    Ethereum wallets usually recommend a gas fee based on current network specifics but would let the user increase or reduce it as preferred. If a transaction is delayed for too long, it’s likely that the gas fees for other transactions on the network are considerably higher, and miners are ignoring the lower prices.

    What is a Nonce?

    Used in cryptography as an acronym for “Number Only Used Once,” a nonce is a number that functions as an identifier for a transaction. This number is sequential and follows an order such that transactions with lower nonces get processed before others. Since one Ethereum wallet can initiate any number of transactions, nonces represent a (sometimes chronological) sequence that transaction processing follows.

    How to Fix a Stuck Transaction

    There are three main ways to fix a stuck transaction: cancelling the transaction, increasing the gas fee, or introducing a new transaction with a custom nonce. Before fixing a stuck transaction, it is important to verify the transaction in a block explorer like Etherscan to confirm that it is pending. An ETH wallet may provide users with a cancel or reset button that helps to delete the transaction. After cancelling, it might be necessary to close the wallet application or browser and then reopen it.

    If it is a hardware wallet, turning off and disconnecting the device is also required. Although this is a simple and quick way to solve stuck transactions, users should note that this method may not always work. It is also possible to fix a transaction by increasing the set gas fee. If a user initiates a transaction with a low gas fee but later increases it to match the market’s current price, miners will pick up and process the transaction.

    Another way is to use a new transaction to clear the old one by setting a custom nonce. For instance, a wallet might have three pending transactions, each with nonces 3, 4, and 5, respectively. The network would process nonce 3 first before the others. However, if the gas fee for that transaction is low and miners aren’t picking it, all three transactions could remain stuck.

    The solution here is to initiate a new 0 ETH transaction with a high gas price and send the transaction to the user’s own address. To clear out the transaction, the user must ensure that the nonce specified in the new transaction is the same as the old one. Although this will cost some gas, it immediately clears out the clog and resolves all the other transactions.

    How to Prevent a Stuck Transaction

    The simplest way to prevent a stuck transaction is to ensure the gas fee you are setting agrees with current market prices. If the gas fee is high enough, miners pick it up almost immediately and process the transaction without delay. Users can confirm current gas prices from the wallet or from other online sources. If you are looking to save on gas fees, there are gas tracking websites and applications that will help you optimize this process.

    Conclusion

    Fixing a stuck Ethereum transaction is easy and usually takes a few minutes. When the transaction is still “pending” on the block explorer, these methods can help solve any problems concerning transaction delay. However, users should note that it is mostly impossible to fix any transactions where the status has moved from “pending” to “completed.”

  • EtherDrops Review and Tutorial

    EtherDrops Review and Tutorial

    EtherDrops is a Telegram based bot designed to track major crypto markets and NFTs. Many crypto enthusiasts would use data tracking sites such as CoinMarketCap and CoinGecko, and these tools are excellent as ‘wikipedias’ for all the altcoins out there. However, for those with more advanced needs, there are much better resources available that can make your life easier.

    If you’ve been in crypto for several years, you’ll probably have a Telegram account. Most of the crypto projects in existence have official Telegram channels to keep their communities informed and up to date on developments, so the chances are you also use the messaging platform.

    This is just as well, because one thing that makes Telegram very useful is its ability to add bots that serve different purposes to the end-user. This is where EtherDrops comes in, so you can be part of the various crypto communities and track your tokens all on the Telegram app.

    What is EtherDrops?

    Originally created in 2018 as a tool to monitor Ethereum wallets, EtherDrops was mainly used to track the transactions of Ether ‘whales’ as well as one’s own wallets on the first smart-contract blockchain. 

    Four years later, EtherDrops has evolved into something much bigger than wallet monitoring. It is now integrated with Ethereum, Polygon, Fantom, Avalanche and BNB Smart Chain, providing a convenient place to track all your crypto activities within one Telegram bot.

    Users are equipped with simple-to-use tools to follow coin prices, as well as track and receive real-time notifications on wallet transactions, DEX and CEX swaps, NFTs, liquidity pools, Binance funding, gas prices, and more.

    By shaping settings according to your own personalized needs using a unique combination of advanced tools and instruments, EtherDrops becomes a simple yet essential bot that notifies you about anything you want, or alerts you to certain conditions. Thousands of investors, traders, and holders use it to navigate their crypto journeys.

    The bot already has more than 400,000 users on board and keeps growing steadily. With the product sending over 5,000,000 notifications daily, it’s no surprise that each day they welcome hundreds of new users onboard.

    EtherDrops Features

    Major features of EtherDrops include:

    • Price tracking; 
    • Wallet tracking;
    • Liquidity pools;
    • OpenSea integration;
    • Gas price notifications;
    • Integration with Telegram groups and channels; and 
    • Token distribution alerts. 

    Price Tracking

    Tracking the prices of various cryptocurrencies is a basic need for long-term investors or traders. Add coins by name, ticker or contract address. Apply your personalized settings to receive instant notifications about price changes and swaps.

    • Price Change Notifications – Set % Price Change to generate an alert.
    • Swap Alerts – Set $ Value to track Swaps on Uniswap, Sushiswap, Balancer and other supported DEXs.

    Wallet Tracking

    Add a wallet by its address to monitor incoming and outgoing transactions, airdrops, NFT transactions, and created contracts.

    • Transaction Notifications – Choose between different event types and set $ alerts to be notified about transactions.
    • Wallet Balance – Check Balances of assets and NFTs.

    Liquidity Pools

    Add a liquidity pool by its contract address and receive % pool changes should it increase or decrease within the specified range.

    • LP Changes – Set the % change value to stay on top of your added pool.

    OpenSea Integration

    Track the floor price and metrics of NFTs and arts on the Ethereum network. To follow your collection, add it by the name or address and set a % price change or generate a $ price target.

    Gas Price Notifications

    At times ETH gas prices can be really high and leave you with an eye-watering bill in fees to pay if you make a transaction. Set gas price notifications and save yourself a fortune!

    • Set Gas Alerts – Set Gwei amount to generate an alert. As soon as it hits the target or lower, you’ll be immediately notified.

    Check out our Advanced Tips and Tricks to Save on Ethereum Gas Fees:

    Integration with Groups & Channels

    If you are an admin or a community manager of a project using Telegram, or you run a trading group, your channel could benefit from integration with the EtherDrops bot.

    • All Bot Features in your Groups and Channels – The same alerts and notifications you set in your individual account can be applied to groups and channels.

    Token Distribution Alerts

    Token distributions often create market price pressure and increase capitalization. Be the first to obtain such info and assess market conditions to make a play in your favor (if you use Margin or Futures trading). 

    • Token Distribution – Receive distribution alerts from seed, private and other events for tokens that you’ve added to monitoring.

    Tutorial: How to use EtherDrops

    1. How to install EtherDrops bot

    To install EtherDrops, simply follow this link to open the bot in Telegram. It will automatically link the bot to your account. Here is an official list of the available EtherDrops install links. If you experience any delays with bot updates, you can switch to any other official link.

    2. How to add a wallet

    In the Main Menu, select “+Add wallet”. Tick ✅ which networks you wish to add to monitoring for your wallet and press ✔ Done (for example ETH and Polygon). Then type in your wallet address and name it. You’ll now be immediately notified whenever there are any transactions happening within the wallet, including NFT activity, in/out transactions, airdrops, etc.

    3. How to edit wallets

    In the Main Menu, select “Edit Wallets”. Choose the wallet you wish to edit. The menu with available options will open up. You can Delete, Rename, make it your Favourite (if ON, notifications with this wallet will be illuminated for better visibility), follow only IN, OUT or ALL transactions, check Balances, add/remove Networks for this wallet, set Alert Transactions filter (you’ll only be notified about transactions that are bigger than the specified threshold).

    4. How to add a liquidity pool

    In the Main Menu, select “+Add pool”. Choose the network. Next, enter the address of the liquidity pool. Enter the % liquidity change to create a notification. When the liquidity of a pool changes within your specified range, you’ll be instantly notified.

    5. How to edit liquidity pools

    In the Main Menu, proceed to “Edit pools”. Choose the liquidity pool to add additional settings. You can Delete, Rename, turn your Notifications ON or OFF for this specific pool, or change the % notification alert.

    6. How to add a new coin

    In the Main Menu, select “+Add coin”. Next, enter the contract address, symbol, or name of the coin. Choose the coin from the list and select network (ETH, BSC, ERC-20, Polygon, or CEX). Finally, enter the % price change and $ value for swaps (in case the coin is traded on a DEX) to create a notification. Now you are following this coin. Whenever there is a swap or price change within the range you specified, you’ll receive an instant notification.

    7. How to edit coins

    In the Main Menu, proceed to “Edit coins”. Choose the coin. You can Delete, turn your Notifications ON or OFF for this specific coin, change Price Denomination (in USD, BNB, ETH, BTC), change the price % notification alert, create a price alert (if a coin is x USD, you’ll receive a notification), or change swap alerts.

    8. How to add an NFT

    In the Main Menu, select “+Add NFT”. Enter the contract address or name of the NFT. Select the right one and type in the % price change alert to receive notifications.

    9. How to edit NFTs

    In the Main Menu, select “Edit NFT”. Choose the NFT. You can Delete, change % alert or price, set a new price alert, or turn notifications ON/OFF.

    10. How to set gas price alerts

    In the Main Menu, select “Set gas alert”. Type in the desired fast gas price to create an alert.

    Conclusion

    EtherDrops is a simple yet comprehensive one-stop tool for all your crypto tracking needs and continues to add new networks, coins, and exchanges as the market expands so you’ll never be short of what you need. It just takes one click and a few easy-to-follow steps within Telegram to get set up, and that short initial setup time proves to be well worth it.

    For a comprehensive tutorial on the more advanced features of EtherDrops such as quick shortcuts, special commands, managing profiles, how to set up the bot for groups and channels, and subscription options, read to the end of this quide. If TL;DR you can also watch a video tutorial here.

    Follow DropsTab / EtherDrops for more information:

    Website | Telegram | Twitter | Medium

  • 10 Best Smart Contract Security Auditing Firms in 2022

    10 Best Smart Contract Security Auditing Firms in 2022

    We have compiled an updated list of the top performing blockchain security and smart contract auditing companies in 2022, giving you comprehensive data and history of these firms for you to make the best informed decision possible.

    Why Do Smart Contract Auditors Matter?

    A lot has happened since 2020 when we last ranked the best smart contract auditors at the time. As the crypto space is evolving, so are hackers and scammers around the world. Web3 attacks are becoming increasingly frequent, and each day malicious players have found creative ways to exploit smart contract vulnerabilities for quick profit.

    One of the largest crypto hacks in history happened earlier this year when Wormhole, Solana’s cross-chain bridge, was hacked on February 2nd. The attack exploited a signature verification vulnerability in the network that allowed the hacker to freely mint 120,000 wETH, worth $325 million at the time. As a result, security audits are extremely important. According to an article by Hacken, though Solana may be blamed for providing the instrument with security flaws to its projects, Wormhole might have “prevented the incident by auditing the instruments it used.”

    Quality smart contract assurance helps identify potential issues, and ensure that the protocol is ready at all times to address any threat that could put its users’ funds at risk. However, there are no guarantees that a protocol will be 100% secure after an audit, but a good smart contract auditor can still perform thorough reviews to potentially prevent major vulnerabilities after launch. To keep up with the increasing demand in blockchain security, certain auditing firms have also branched out to offer other cybersecurity services such as penetration testing, running bug bounty programs, vulnerability assessments, and threat modelling.

    What Makes a Good Smart Contract Auditor?

    We have compiled our list of the top smart contract auditors this year based on a set of criteria. One of the first steps in finding a reliable smart contract auditor is to check the portfolios of projects they have audited. Doing so allows you to see the size and popularity of the projects they have audited, and more importantly if any of the projects they have worked on have been compromised. Larger projects tend to attract more attention from hackers, and if they have not been exploited for a long period of time, then it is a good sign that their security is up to date thanks to their auditor(s).

    The next factor to consider is the auditor’s expertise in certain blockchains. As of now, most auditors offer only Ethereum contract audits. Only some are specialized in auditing projects on altchains such as BNB, Solana or Polygon. This is because EVM-compatible chains have different architectures, and certain altchains use a completely different programming language, e.g. Rust for Solana. Different firms have different areas of expertise in auditing protocols built on different blockchains, so it is best to assess their level of competency before engaging them for an audit. For example, if you are looking for a Polygon-based contract audit, check the firm’s past audits for Polygon-based projects.

    Finally, it goes without saying but the quality of audit reports is an important consideration to look for in a reliable auditor. Different auditing firms have their own methodology and approach. In many instances, the scope of an audit varies according to the scale and complexity of the project as well as the auditor’s agreement with their clients. It is important to note that a good report should include a comprehensive description of all the problems that were found during the test and inspection, and the findings of the audit have been addressed by the project.

    Hacken

    Website: https://hacken.io/

    Projects Audited: 700+

    Major Clients: FTX, Avalanche, VeChain, Huobi, Kyber, Air Asia

    Chains Supported: Ethereum, EVM Chains, BNB Chain, Solana, Polygon, Avalanche, NEAR, Fantom

    Hacken is a leading cybersecurity consulting company focused on blockchain security. Since its inception in 2017, Hacken has been educating and growing the ethical white hat hacker community to continually nurture and build the blockchain security ecosystem. Who better to identify and address cybersecurity threats than a hacker? (https://www.kambioeyewear.com/)

    Hacken provides a wide range of security services including blockchain security consulting, web/mobile penetration testing, vulnerability assessments, coordination of bug bounty programs and more. The company also encompasses security products such as HackenAI Security Platform, hVPN, and hPass etc. Beyond just blockchain security ecosystem, Hacken has also partnered with non-blockchain giants like Air Asia.

    Over the years, Hacken has built a commendable reputation as a security risk assessment for companies requiring a digital environment to create or enable services for their consumers, which is why Hacken is certified as Web 3.0 security standard by two of the world’s largest cryptocurrency data aggregator Coingecko and Coinmarketcap.

    Quantstamp

    Website: https://quantstamp.com/

    Projects Audited: 200+

    Major Clients: Ethereum 2.0, Solana, BNB Chain, Cardano, Maker, Curve, OpenSea

    Chains Supported: All chains

    Quantstamp is a security validation protocol for smart contracts and is one of the most recognized auditing companies in the blockchain sector. Their security team consists of PhDs and security professionals with experience in top IT companies such as Google, Facebook, Apple, and Ethereum Foundation.

    Quantstamp specializes in auditing services of all programming languages designed for use in blockchain applications. Since its launch in 2017, Quantstamp has audited over 200 projects and helped secure over $200 billion in value. Its services include auditing layer-1 blockchains, smart contract-powered NFT and DeFi protocols, and developing financial frameworks for layer-1 blockchain ecosystems.

    Trail of Bits

    Website: https://www.trailofbits.com/

    Projects Audited: 500+

    Major Clients: 0x Protocol, Compound, MakerDAO, Acala, Balancer, yearn.finance

    Chains Supported: Ethereum, Polkadot, Polygon, Tezos, Arbitrum

    Trail of Bits is a cybersecurity industry giant with a long list of big-name clients such as Microsoft, Adobe, Reddit, Zoom, Airbnb, and Reddit etc. Founded in 2012, before smart contracts were even invented, the company prides itself as a network of developers with the capabilities of identifying and fixing loopholes in software, devices, and code. They have long developed tools that help developers find and fix critical vulnerabilities. Manticore is one of their signature tools, a multi-contract and multi-transaction emulator. Other tools include Cryptic, Slither and Echidna which are also blockchain-focused solutions.

    ConsenSys Diligence

    Website: https://consensys.net/

    Projects Audited: 100+

    Major Clients: 0x Exchange, Aave, Balancer, Uniswap

    Chains Supported: Ethereum

    Consenys is a US-based blockchain technology solutions company and is one of the biggest and prominent blockchain incubators in the industry. Unlike other security firms mentioned on this list, ConsenSys dedicates its resources and technological expertise solely to the development of Ethereum blockchain applications and software, especially financial infrastructures.

    Its signature product, MythX, is one of the most powerful automated scanners for Ethereum smart contracts, providing a solid API which developers can use to access security analytics tools. Over the years, ConsenSys has successfully protected over 100 Ethereum-based projects and uncovered over 200 issues. Apart from security auditing, the company also provides two other services known as Fuzzing, a bug-finding tool for first specifications, and Scribble, a runtime verification tool that translates high-level specifications into Solidity code.

    CertiK

    Website: https://www.certik.com/

    Projects Audited: 1800+

    Major Clients: BNB Chain, Polygon, The Sandbox

    Chains Supported: All chains

    CertiK is a blockchain security company specialized in formal verification and AI technology in collaboration with some of the world’s best cybersecurity experts to create end-to-end audit services. The company has developed “CertiK Chain”, a public blockchain focused on mathematically validating the safety of smart contracts through formal and manual verification. Other services of CertiK include Skynet, Skytrace and Penetration Testing.

    CertiK is an official partner company of Binance, and is also backed by numerous big-name firms such as Golden Sachs, Coinbase, Lightspeed, Matrix Partners, and DHVC.

    LeastAuthority

    Website: https://leastauthority.com/

    Projects Audited: 80+

    Major Clients: Ethereum Foundation, Chia Network, O(1) Labs, Protocol Labs, cLabs, Tezos Foundation

    Chains Supported: Ethereum, Chia Network, Tezos

    LeastAuthority is a cybersecurity consulting firm with its main focus on privacy. Using privacy-enhancing technologies, it classifies itself as an enabler of private and disruptive storage solutions. The platform offers two major products which are essentially storage architectures. The first, Privatestorage (formerly S4), is a centralized system that provides storage infrastructure to end-users and offers them the autonomy over the collection, processing and distribution of their private data. The second product, Tahoe LAFS, enables a decentralized, distributed and fault-tolerant storage facility.

    Apart from security audits, other services also include penetration testing, network and traffic analysis, and mechanism and incentive design. The company’s consultants work with developers throughout their development cycles to ensure that their projects are not susceptible to security threats.

    ChainSecurity

    Website: https://chainsecurity.com/

    Projects Audited: 85+

    Major Clients: yearn.finance, Maker, Compound, Curve, Rarible, Kyber Network

    Chains Supported: Ethereum

    ChainSecurity is a blockchain security firm led by security experts from the renowned university ETH Zurich. Similar to ConsenSys, the company specializes in Ethereum contract auditing. They have developed an automated audit platform that allows projects to thoroughly analyze smart contract designs, test their viability, and monitor metrics detailing their performances after launch. The company has worked with more than 85 Ethereum-based projects and helped secure more than $17 billion worth of assets.

    OpenZeppelin

    Website: https://openzeppelin.com/

    Projects Audited: 150+

    Major Clients: Ethereum Foundation, Coinbase, Compound, Aave, The Graph

    Chains Supported: Ethereum

    OpenZeppelin is a cybersecurity technology and services company known for its development of Solidity libraries known as “OpenZeppelin Contracts.” These libraries are used in most Solidity projects as a tested and standard template for contracts deployable on DApps. Developers can easily integrate these solutions into their applications through OpenZeppelin’s native SDK.

    OpenZeppelin was the first cybersecurity company to reinvent blockchain security by introducing elements of gamification to identify security vulnerabilities in smart contracts. “Ethernaut” is a web3/Solidity war game which challenges gamers to find and exploit loopholes in smart contracts to progress to the next level. The company also provides free services such as “Defender”, which helps clients automate their smart contract administration, offering a more secure and private transaction infrastructure.

    SlowMist

    Website: https://www.slowmist.com/en/

    Projects Audited: 1000+

    Major Clients: Binance, OKX, Huobi, Pancakeswap, Crypto.com

    Chains Supported: Ethereum, EVM Chains, EOS, Fabric, Solana, VeChain, ONT

    SlowMist is China’s leading blockchain security company founded in 2018. The team at SlowMust has over 10 years of experience in network security, specializing in smart contract audits, blockchain security, wallet security testing, and more. The company constantly tracks and publishes data about security situation on crypto exchanges through their Blockchain Threat Intelligence (BTI) service. Their most notable product MistTrack is a system that tracks the movement of stolen funds. Since its launch, it has helped recover nearly $1 billion in stolen funds.

    The company also offers security-related products such as anti-money laundering software, DarkHandBook (crypto safeguarding handbook), SlowMist Hacked (crypto hack archives), and FireWall.X (firewall for EOS smart contracts).

    Runtime Verification

    Website: https://runtimeverification.com/

    Projects Audited: 100+

    Major Clients: Algorand, Polkadot, Tezos Foundation, Ethereum Community Fund, NASA

    Chains Supported: All Chains

    Runtime Verification is a research and development company focused on verification-based techniques to perform security audits on virtual machines and smart contracts on public blockchains. The platform is a dynamic software analysis approach that analyzes programs as they execute, observing the results of the execution and using those results to find bugs. This solution designs standard models for high-value applications and uses them as templates to develop security-sensitive products.

    Runtime Verification has developed two main smart contract security products. The first, K Semantic Framework, offers smart contract correctness proofs to validate the viability of Ethereum and Cardano’s smart contracts. The second, Firefly, is a test coverage analysis tool for Ethereum smart contracts. The company has also worked with Ethereum Foundation on building a formal framework for Ethereum 2.0 testing.

  • Hot Wallets vs. Cold Wallets: Differences, Pros and Cons

    Hot Wallets vs. Cold Wallets: Differences, Pros and Cons

    Hot and cold wallets are used to store your cryptocurrencies, specifically your private keys which grant you access to your crypto assets. They are therefore a crucial element of the cryptocurrency space.

    The major difference between hot and cold wallets is that hot wallets are connected to the internet whilst cold wallets are not.

    For those holding cryptocurrencies, the choice between cold and hot wallets depends on factors such as the amount of coins you hold, the frequency in which you trade etc.

    Click here to learn more about private and public keys.

    Hot Wallets

    Hot wallets are connected to the internet and are generally more popular.

    Examples of Hot Wallets

    Hot wallet: Enjin mobile wallet
    Hot wallet: Enjin mobile wallet

    Pros

    • Easy to set up and use.
    • Convenient to access funds for trading since it is already connected to the internet.
    • Free.

    Cons

    • Vulnerable to hackers, as seen in the numerous hacks on cryptocurrency exchanges.
    • If exchanges close, traders will be left with no recourse to recover their funds.

    Cold Wallets

    Cold wallets are also known as hardware wallets. They are physical offline storage devices that you plug into your computer to use.

    Cold wallets
    Cold wallets: Clockwise from left, the Ledger Nano X, Trezor Model T and KeepKey

    Examples of Cold Wallets

    Pros

    • Provide better security because your private keys are stored offline.

    Cons

    • Can be expensive; prices can range from US$59 for the Ledger Nano S to US$170 for the Trezor Model T.
    • Extra steps are required for trading. Save for the KeepKey which is partnered with ShapeShift exchange, users must first send their cryptocurrencies from their cold wallet to an exchange before they can trade. And when cryptocurrency prices fluctuate by the minute, this can have a profound effect on your gains.
    • Harder to use. They do require at least 10 minutes for initial set-up, and you will need to plug in your device every time before sending your cryptocurrencies. (www.speedclean.com)
    • Inconvenient. Even with the Ledger Nano X’s mobile feature allowing you to connect the device to your mobile phone via Bluetooth, it’s still not as convenient as a mobile wallet, which is simply an app on your phone.

    Conclusion

    Whilst there is a longer list of cons for cold wallets, they are still highly recommended on the basis of significantly improved safety of funds.

    Numerous people have suffered from hacks and closures of exchanges. These victims have no way to get their funds back, or at best, it will take a very long time. For example, Mt. Gox exchange was hacked in 2011 and 2014. To date, none of its victims have gotten any of their stolen funds back.

    Meanwhile, hot wallets are very convenient — if you leave your funds on exchanges, you can trade with the click of a button.

    We recommend keeping small amounts of cryptocurrencies in hot wallets for day-to-day trading or spending only. Whilst the bulk of your cryptocurrencies should be kept in cold wallets. If you obtain any gains from trading, you should also consider how much you want to retain for further trading and immediately transfer the rest to cold wallets.

  • DYOR: How to ‘Do Your Own Research’ Before Investing in Crypto Projects

    DYOR: How to ‘Do Your Own Research’ Before Investing in Crypto Projects

    There are tens of thousands of cryptocurrencies out there, with over 1,000 new tokens launched between January and July of 2022. Over time, people in the crypto community have realized that there are many bogus projects in the blockchain space whose sole aim is to entice unsuspecting people and defraud them. This makes it compulsory for everyone to research blockchain projects before making financial commitments.

    What Does DYOR Mean?

    DYOR (Do Your Own Research) is a well-known acronym in the crypto and blockchain space. DYOR means that people are encouraged to conduct due diligence and gather all the necessary information on projects before depositing any funds, especially for new projects. Adequate research protects new and existing crypto enthusiasts from scams and projects with no real value. By “doing your own research,” members of the crypto community can find viable blockchain projects and avoid fraudulent or deceptive ones.

    Why is DYOR Important?

    DYOR is important to avoid losses, especially from scams or fraudulent actors. The evolution of decentralized finance (DeFi) and blockchain tech has made it easy for creators to sell the promise of a revolutionary product and attract cash from the general public. Since anyone with enough technical knowledge can create an asset on a blockchain, people no longer require intermediaries such as banks and brokerages before investing in the opportunities available within the crypto market. However, without governmental checks and regulations on these intermediaries, it also means that there is a high risk that the average investor will fall for a scam or fund a project with nefarious intentions. 

    Furthermore, since there are no centralized authorities in the DeFi space, people have no place or authority to report their grievances should the project turn out to be a scam. Fraudulent development teams know this, and exploit it by making promises they cannot deliver. In addition, transactions recorded on a blockchain are immutable. This design is a significant reason DYOR is important, since funds lost to scams or harmful projects are usually irretrievable.

    How to Do Your Own Research (DYOR) in Crypto Projects

    Here are some tips on how to DYOR before investing in crypto projects:

    • Find the project team and its Unique Selling Proposition (USP);
    • Evaluate the project roadmap;
    • Check the project’s social media reputation and presence;
    • Research the project’s source of funds
    • Read the project’s whitepaper
    • Find Third-Party Audit Reports

    Find the Project Team and its Unique Selling Proposition (USP)

    People looking to invest or deposit funds must first find information about the project’s motives, purpose, and development team. The data could include the project’s past performance and detailed use cases of featured products. If a project team is anonymous, it should set off red flags in your head, as you should be wondering why they aren’t willing to put their name behind a project if it is reputable. Also, what is the project trying to achieve? Consider if it is actually something that there is likely a market for, and whether other competitors have attempted the same idea in the past and their results? 

    Evaluate the Project Roadmap

    Reading and understanding a project’s roadmap, which provides a strategic overview of objectives, milestones, deliverables, and resources, is an effective way to DYOR. You should also evaluate if the roadmap is feasible – this relates to the above research on the team and their background. A fake or deceptive crypto project may publish a roadmap that promises all kinds of products or features in a short time. These projects sometimes do this to excite new backers into believing the project is viable in the long run and things are moving along quickly. However, the roadmap may be too good to be true. If a project makes promises like partnerships, new products, plans to raise a large sum of money, and full government approval all within a short time, buyers should be wary.

    Check the Project’s Social Media Reputation and Presence

    Reputable blockchain projects usually have a verifiable social media presence and reputation. Checking the project’s reputation on major social media platforms such as Facebook, Telegram, Reddit, and Twitter gives insight into people’s thoughts about the project. See how other users are interacting with the community. Also, see if there are any questions or grievances concerning the project, and whether the team is immediately on hand to address them. 

    Research the Project’s Source of Funds

    Before making financial commitments to a project, it is important to determine whether a single individual or an established firm backs the project with capital and other resources. Prospective investors should also research previous projects backed by these sponsors to see if they were successful. Additionally, these sponsors should have a good reputation in the crypto community. This information can be located in the project’s whitepaper. 

    Read the Project’s Whitepaper

    All crypto projects should have at least a whitepaper that documents information and technical aspects of the project. Whitepapers contain critical information about a project’s development process, potential opportunities, and utility.

    Find Third-Party Audit Reports

    Many auditors, such as Certik, Hacken and Quantstamp review the code of blockchain projects before launch to ensure their security. These audits involve double-checking the code and testing it for vulnerabilities, which results in the funds within the application being much safer than a non-audited smart contract. Looking up the audit report of projects before investing is a sure way to build confidence in a project. However, people should be aware that a positive report does not mean that the project is completely safe, as there are instances where malicious code was added after the report was released. 

    Learn more about these companies and what they do: Top 10 blockchain security and smart contract aduit companies.

    Common Tools Used in Researching Crypto Projects 

    People researching crypto and blockchain projects should use multiple tools, common tools include CoinGecko, CoinMarketCap, Investopedia and social media. 

    CoinGecko

    CoinGecko is a popular market research source for blockchain projects. The platform provides detailed information on market caps, prices, and daily trading volumes of various crypto assets. In addition to being a credible source of crypto information, CoinGecko also provides crypto-focused podcasts, industry commentary, and daily newsletters. When going into individual asset pages, you can also find the token’s website and social channels, allowing you to continue your due diligence.

    CoinMarketCap

    CoinMarketCap is the leading platform for cryptocurrency market information and research. The platform provides market information on nearly all the crypto assets available. CoinMarketCap also ranks crypto assets and projects in real-time, using features like market capitalization or 24-hour trading volume to sort projects in order. Like with CoinGecko, make sure to check the individual asset pages for more information on a specific cryptocurrency.

    Investopedia

    Investopedia is a leading online resource in the finance space. It is a repository that explains related terms and contains news and general financial information. Investopedia explains many complex blockchain concepts in layman’s terms, making it an ideal platform for newcomers in the finance and crypto space.

    Social Media

    It is almost essential to sample public opinion about a project before spending money. Social media platforms like Facebook, Twitter, Telegram and Reddit contain raw and undiluted information from members of the crypto community who may have in-depth details about the project. 

    Although the information posted on social media may be unverified, these platforms can still be an excellent way to get much-needed information about projects. Posts may be from people who have lost money, made money, or those who noticed specifics that they considered to be red flags. However with everything on social media, always confirm that the statements being made are legitimate before you take them as truth.

    Conclusion

    DYOR is crucial for investors in the cryptocurrency and blockchain space. The absence of easy-to-understand information and lack of regulation somewhat makes scams more likely in the crypto space than in traditional financial markets, so never overlook the importance of research and verification. Doing the proper research before getting monetarily involved in any project is a concept that has more relevance in the blockchain sector than in many other industries because it is a disruptive and highly volatile sector.

  • Ledger Nano S Guide: How to Properly Set Up Your Device

    Ledger Nano S Guide: How to Properly Set Up Your Device

    This setup guide helps you set up your new Ledger Nano S hardware wallet. It will teach you how to backup your wallet and install apps so you can access your cryptocurrencies with it. You can read our full Ledger Nano S review here.

    The wallet is one of the most advanced cryptocurrency wallets in the market today. It supports over 1800 cryptocurrencies. The Ledger Nano S also offers better support, compact design, mobility, and security for your crypto-assets. The device retails for USD 59 or you can save 27% when buying a family pack of 3 for USD 129. Important to note that Ledger plans on discontinuing the Nano S sometime during 2022 once they’ve sold the last 10,000 Final Edition units.

    Ledger Nano S Unboxing

    You can also follow our step-by-step video setup guide here.

    Ledger Nano S – Setup and Guide

    The first step when you receive your hardware from the store is to check if the box is correctly sealed. If the box is not sealed correctly, return it to the store because there is a high chance that the wallet has been tampered with.

    Check that the box is sealed
    Check that the box is sealed

    After verifying that the seal is intact then unbox your device and confirm that all the contents are there. The contents in the box should include:

    1. Ledger Nano S device;
    2. Blank sheet to write down your recovery phrase;
    3. USB cable to allow you to connect it to the computer;
    4. Setup guide manual that contains instructions on how to install and use your device; and
    5. Keyring and lanyard to take your device on the go.
    Inside the Ledger Nano S box
    Inside the Ledger Nano S box

    Verify that the 24-word recovery phrase card is blank. This 24-word recovery phrase allows access to your private and public key details in case your login details have been lost. If it is already pre-determined, it means that your device has been tampered with.

    Setting up the Ledger Nano S

    Connect the device to your computer using the USB cable included.

    A welcome screen immediately flashes up your device and prompts you to press the two buttons on top to begin.

    It will then ask “Configure as a new device?”. Click:
    – “x” to restore an old device using your recovery phrase; or
    – “✓” to set up a new device.

    Choose "✓" to set up a new device
    Choose “✓” to set up a new device

    Setting the PIN Code and Recovery Phrase

    Setting the PIN Code

    The device will ask you to set a new PIN code. In future, this is what you will enter to access your device.

    Input your chosen 4 to 8 digit PIN code by pressing the buttons on either side to choose the digit, then pressing both buttons together to confirm. Re-enter your PIN code to confirm and conclude the PIN code setup process.

    Set your PIN code
    Set your PIN code

    Setting the Recovery Phrase

    You now need to set a recovery phrase that you will use to restore your wallet on another physical device.

    Press the 2 buttons of your Ledger Nano S device simultaneously to start.

    The device will start displaying the 24 words that make up your recovery phrase one by one. Press both buttons simultaneously to move onto the next word. Write them down in order on the blank recovery sheet provided.

    DO NOT take a photo of your recovery words or write them down on your computer- keep it locked away. This is because anyone with your recovery phrase will be able to restore your account on another Ledger device and steal your funds.

    Afterwards, the device will prompt you to confirm your 24-word recovery phrase by asking you to input some of the words. Do this to complete the recovery phrase setup.

    Write down your 24 word recovery phrase then confirm it as prompted
    Write down your 24-word recovery phrase then confirm it as prompted

    Your device is now set up and ready to use!

    Ledger Live Application Setup

    Keep your device connected to your computer. You need to download and install the Ledger Live app to your computer.

    Open the Ledger Live app and select: “Initialize as new device.” Click “Ledger Nano S” and follow the instructions that check whether you have installed your hardware wallet correctly. You will then be asked to setup a Ledger Live password.

    Ledger live app
    Ledger live app

    To use the device with a particular cryptocurrency, you will need to download the corresponding app on Ledger Live.

    Afterwards, the Ledger Live app will ask you to install apps or add accounts. Select “Open Manager” which will allow you to install or uninstall apps.

    For example, to use Bitcoin with your device, select “Open Manager”, find “Bitcoin” in the app catalog and simply click “install”. You will now see the Bitcoin app on your device.

    Installing apps onto your device.
    Installing apps onto your device

    The Ledger Nano S only supports between 3 to 11 apps after its 1.6 firmware upgrade. So if you want to use your device with more than 3 cryptocurrencies, you might find it difficult to fit all of the different apps onto your device in which case you will have to uninstall some apps to make room.

    You will not lose your cryptocurrencies if you uninstall the corresponding app. But of course installing/uninstalling apps to use your device is seriously troublesome.

    Your Ledger Nano S is now ready to use!

    Ledger Nano S setup guide: Conclusion

    The Ledger Nano S is relatively easy to set up. The instructions are very clear and intuitive.

    Again, ensure that your PIN code and recovery phrase is kept offline and secure. Others can access your funds using your PIN code or restoring your device using the recovery phrase.

    The Ledger Nano S is limited to between 3 and 11 apps, depending on the individual app sizes for specific coins. If you have or intend to use more than that amount of cryptocurrencies regularly, you may have to use multiple devices. Or consider getting a Ledger Nano X? Check out our Ledger Nano X review to learn more.

  • What is Bifrost Finance ($BNC)?

    What is Bifrost Finance ($BNC)?

    Bifrost Finance ($BNC) is a Polkadot-based parachain designed to enhance cross-chain liquidity and provide users with staking service. Bifrost pays vTokens (Staking Derivatives Voucher Tokens) to users who help with liquidity by depositing PoS tokens on the platform. Users can convert a Proof-of-Stake (PoS) token into a vToken (such as ETH to vETH) for cross-chain functionality. 

    Many blockchain networks in the crypto space offer various DeFi services supported by unique native tokens. Although the global DeFi and blockchain sectors are growing, most operate individually and have little to no interoperability with each other. This lack of cohesion between chains created a void that only cross-chain projects could fill.

    Cross-chain infrastructure solutions are slowly gaining popularity. However, these projects still face problems with liquidity across networks and cross-chain reward mechanisms for staked assets. Bifrost Finance aims to address these blockchain limitations, allowing the easy flow of assets and user incentives between blockchain networks. 

    Ecosystem, Technology, and Utility

    The Bifrost project lets users earn incentives for staking assets and providing cross-chain liquidity. The project functions as an intermediary protocol between decentralized applications, and supports these applications via PoS services and liquidity staking.

    Usually, staking crypto assets require users to lock their tokens in smart contracts for a specified period. Staked tokens are generally not accessible until the lock duration expires. However, Bifrost uses its native vTokens to solve this problem through liquid staking. Liquid staking on the Bifrost platform lets users stake crypto assets and receive vTokens in exchange instead of waiting for the specified staking period to expire. Stakers can then use the vTokens to access and fund Bifrost-compatible networks like Kusama and Polkadot. Bifrost Finance uses Polkadot’s GRANDPA consensus algorithm for staking and other functions.

    Components of the Bifrost Finance Network 

    The Bifrost Finance network includes the following components:

    • Cross-chain users, including vToken holders, and BNC miners
    • Voters, who are BNC holders, capable of voting for the governance and management of the Bifrost platform. Voters receive rewards for their service.
    • Node validators who vote on valid transactions. Validators also receive a percentage of the total platform’s rewards.
    • Stake proxy nodes nominated to support PoS chains of other networks associated with Bifrost. These nodes connect with various mining pools, liquidity pools, DApps, and wallets, making it easier for the staking node to interact with other DeFi services and protocols.
    • A vToken DEX that provides liquidity for vToken. Users can also stake or unstake their tokens on this exchange.
    • Community Developers who build applications like wallets and DApps, developing new features on the Bifrost platform.

    Is the Bifrost Finance Network Safe?

    The Bifrost network is a Polkadot parachain project. The network provides security by leveraging Polkadot’s existing infrastructure instead of providing its own. Polkadot also helps provide secure communication between networks with the help of its relay chain, without any additional trust mechanisms through a concept known as “shared security.”

    Bifrost Native Coin ($BNC) Utility

    The BNC token is essential for the governance and operation of the Bifrost network. Some of its main use cases include:

    Trading Fees

    Users performing Bifrost network transactions, including transfers and staking, must pay transaction fees. Bifrost has a flexible fee model that supports multiple asset payment fees such as BNC, DOT, vDOT, KSM, and vKSM. The platform converts these fees into BNC before storing them in the treasury to promote network growth and maintenance.

    Collateral

    Participating nodes have to stake BNC to guarantee good conduct on the Bifrost network. Based on node performance, required collateral may increase or reduce.

    Administration

    To build and establish community governance, BNC holders can recommend and vote on network enhancements, with each vote corresponding to the amount of BNC tokens held.

    Bifrost ($BNC) Unique Features?

    • Bifrost provides PoS networks with much-need liquidity by letting users convert assets to vTokens with the option to receive passive income from staked tokens.
    • vTokens can help optimize transaction speed and improve transaction efficiency across various protocols and platforms, including decentralized applications (DApps), decentralized exchanges, and centralized exchanges.
    • Bifrost Finance guarantees genuine democratic governance by ensuring all processes on its parachain are transparent.

    Conclusion

    Cross-chain liquidity allows users to use and enjoy various blockchain protocols and maximize the many opportunities in the DeFi space. By providing quick and cost-effective cross-chain liquidity, Bifrost Finance has made a significant leap in DeFi advancement.

    Official Channels

    Website — https://bifrost.finance/ 
    Twitter — https://twitter.com/bifrost_finance  
    Telegram — https://t.me/bifrost_finance 
    Medium — https://medium.com/bifrost-finance 
    Github — https://github.com/bifrost-finance

  • Top Common Myths About NFTs Debunked

    Top Common Myths About NFTs Debunked

    NFTs have become one of the most exciting trends in the blockchain and cryptocurrency space. With many existing projects and more in the works, crypto enthusiasts now consider NFTs as potentially rewarding and an attractive asset. These specialized assets have generated a lot of media hype, speculation, and commendable value for the greater crypto and blockchain ecosystem. 

    However, many people are still unaware of the specifics which make NFTs work such as minting, applications, and their general significance towards the crypto and traditional sectors. People also don’t know what to make of the trend, and whether or not they should participate in the hype. As popular as they are, NFTs suffer from the effects of many widespread myths and misconceptions, making these assets some of the most misunderstood in the finance and blockchain sector.  

    What are NFTs?

    NFTs (non-fungible tokens) are digital assets with uniquely verifiable qualities contained in their metadata. These tokens function as a popular and effective way to represent traditional or blockchain assets because they are non-fungible, meaning they cannot be freely interchanged in a one-to-one manner, duplicated, or forged. Once created, NFTs are permanently etched on the blockchain’s public ledger and are visible by all nodes on the blockchain. The unique nature of NFTs affords them significant utility across various sectors.  

    While the principle behind NFTs has real-world applications, these assets are still in their infancy. Many people, including crypto enthusiasts, are still only aware of the myths and misconceptions created by mainstream media and do not fully understand these assets which can have huge potential. Here are some of the most widespread myths about NFTs and the truths behind them.

    Click here for our in-depth explainer on what are NFTs.

    Myth #1 – NFTs Are a Kind of Cryptocurrency

    The biggest misconception is that NFTs are a kind of cryptocurrency. Although they are both developed on blockchains, the critical difference is their fungibility. Cryptocurrencies are fungible assets traded only by an asset with the same value. For example, Ethereum’s Ether (ETH) token is only tradable if exchanged for other ETH or another cryptocurrency with the same exact value. On the other hand, each NFT has a unique value and cannot be replaced with another. One Ether is always worth the same as any other Ether, but the same cannot be said about NFTs, making them a digital asset, not a currency.

    Myth #2 – NFTs Are Harmful to the Environment

    Since creators mint NFTs on energy-intensive blockchains, many people think they are harmful to the environment. However, this is not the case. People are now using the more energy-efficient Proof-of-Stake (PoS) blockchain protocol instead of the Proof-of-Work (PoW) protocol, which is more energy-intensive.   

    Click here to learn more about Proof of Work vs Proof of Stake.

    Myth #3 – NFTs Don’t Have Value

    Another common misconception about NFTs is that they do not have any value. On the contrary, am NFT derives true and inherent value from the underlying blockchain technology that enables the ownership, transparency, and security of digital assets.

    The utility of NFTs transcends digital artwork, avatars, and collectibles. For example, certain NFTs offer holders various uses and benefits ranging from VIP concert passes to private dinner reservations. Additionally, NFTs are applicable in the real estate sector to transfer land deeds or verify ownership.

    Myth #4 – NFTs Are Easily Copied and Forged 

    A common issue with digital collectibles is validating their authenticity and rarity, mainly to prevent the sale of counterfeit or pirated items. This is a problem that blockchain technology quickly solves. 

    A blockchain maintains a series of public transactions across different computers or nodes. Each node “witnesses” all transactions to ensure that they are all 100% authentic. With NFTs, the blockchain creates a clear chain of ownership making collectors confident that their NFT is the one-and-only “original,” also ensuring that buyers can verify authenticity before exchanging money.

    Myth #5 – NFTs Encourage Scams and Money Laundering

    Many still commonly believe that blockchain assets are for criminals and tax defaulters. However, cash is still much more utilized for nefarious purposes and crime-driven than cryptocurrencies and NFTs. All transactions on the blockchain are completely transparent and easily trackable if there is a need to detect fraudulent activity. Furthermore, in some cases, it is also possible to recover stolen funds from scams or money laundering. 

    Myth #6 – Buying an NFT Means Owning the Intellectual Property

    This myth is more of a technical misconception. Owning an NFT does not automatically give ownership of the underlying asset or its intellectual property rights. Unless otherwise stated, ownership of the intellectual property stays with the creator of the NFT. Even after the purchase, buyers or collectors do not have the right to use the NFT outside the scope outlined by the creator. Think of it as a collectable book or movie; just because you purchase it doesn’t mean you have the right to reproduce or monetize the intellectual property.

    Myth #7 – NFTs Are Just a Fad

    Like the internet, many people thought NFTs would not catch on or only find applications for illicit activity. Some also believe that these tokens are just hype and will suddenly disappear, leaving many people holding worthless assets. However, given the many possible use cases, NFTs are unlikely to disappear.  

    We can see that NFTs are not dead or just a fad from the launch of video game retailer GameStop’s NFT marketplace. GameStop launched its NFT marketplace on 12th July 2022, ahead of its initial anticipated release after hinting at this for over a year. GameStop has in May 2022 already released its digital asset wallet for users to store, send and receive cryptocurrencies and NFTs in anticipation for this marketplace launch.

    The launch of GameStop’s NFT marketplace also appears to be a success, with trade volumes exceeding US$1mil (over 1,028 ETH) in 24 hours. Commentators on Twitter also suggest that GameStop’s launch was even more successful than that of the Coinbase NFT marketplace, since GameStop’s trade volume in 24 hours was equivalent to 60% of Coinbase NFT marketplace’s entire lifetime sales.

    Conclusion: NFT Myths?

    NFTs are here to stay and are slowly gaining massive traction across the crypto space. Although popularity is on the rise as creators are continuously minting new ones every day, crypto enthusiasts worldwide still need to stay informed about utility to better understand the technology, how it works, and how creators can sustain the NFT market well into the future.

  • Top 3 Cryptocurrency Hardware Wallets: Which One’s Best?

    Top 3 Cryptocurrency Hardware Wallets: Which One’s Best?

    We compare the top 3 cryptocurrency hardware wallets available on the market: Ledger Nano X, Trezor Model T, and KeepKey. They are designed to keep your private keys — and thus your cryptocurrencies stored safely offline.

    Features that will be Used to Compare the 3 Hardware Wallets

    We will compare the Ledger Nano X, Trezor Model T and KeepKey hardware wallets to see which one is the best by looking at these features:

    • Price
    • Security
    • Hardware design
    • Multi-currency support
    • Ease of use

    You can also check out our individual reviews for each of these devices:

    Price (Winner: KeepKey)

    The much lower price of the KeepKey is probably because it is the oldest of the 3 devices.

    • Ledger Nano X: US$149.00.
    • Trezor Model T: US$267.00.
    • KeepKey: US$79.00.

    KeepKey wins based on price alone, followed by Ledger Nano X and Trezor Model T.

    Security (Winner: Ledger Nano X)

    Ledger Nano X

    It is the only hardware wallet with 2 layers of security. The device has an additional secure element chip with its own storage and functionality. It cannot be breached by hackers even if connected to a compromised mobile phone or computer.

    Ledger Nano X Teardown
    Ledger Nano X Teardown showing Secure Element Chip

    It is also the only hardware wallet with CC EAL 5+ certification i.e. it has been tested on an international standard for computer security certification and ranked as being formally designed and tested. Together with its predecessor the Nano S, they are the only 2 hardware wallets on the market with CSPN (First Level Security Certificate) certification issued by the ANSSI (National Agency for Information Systems Security).

    Similar to the Model T and KeepKey, users can set up wallets protected by a passphrase in addition to your PIN code. So say a thief demands you to unlock your device, you can give them the PIN code to access wallets with fewer funds. Whilst hiding the bulk of your crypto behind passphrase protected wallets.

    The Nano X has the addition of Bluetooth support. Unfortunately Bluetooth’s security record is not spotless and presents a new vector of attack for the device. Ledger CTO Nicolas Bacca stated during an interview that the Bluetooth on the Nano X functions assuming the connection has been compromised. So it will only send transactional information and at no point will hackers be able to take over the device.

    Trezor Model T

    Its unique feature is that the Model T has publicly available code to protect users in the unlikely event that its manufacturer SatoshiLabs shuts down. This means that other developers can maintain the wallet and add new functions to it.

    The Model T is also compatible with other BIP32, BIP39 and BIP44 compatible wallets. So whilst it is not recommended, users can use their Model T recovery seed to recover their funds using another company’s hardware wallet.

    The Model T and KeepKey both have number randomisation on the PIN code keypad to prevent hackers from stealing your cryptocurrencies with malware.

    The device allows users to set up wallets protected by an additional passphrase.

    KeepKey

    Similar to the Nano X and Model T, the KeepKey allows you to recover your device with a recovery seed, and you can set your unique PIN code and additional passphrase for “secret” wallets.

    The KeepKey also has PIN code keypad randomisation to combat attacks using malware.

    Verdict

    Ledger Nano X wins for uniquely having 2 layers of security which brings the most wide-reaching and immediate benefit to users. Followed by the Trezor Model T and the KeepKey.

    However, it must be mentioned that Kraken Security Labs managed to hack the chips inside the Model T, Trezor One, and KeepKey, as they all share the same architecture. They could recover the recovery phrases by having physical access to the devices. Although the companies have since issued various software upgrades that make it difficult or, in case of adding an extra password phrase protection, impossible to hack it, the inherent vulnerability is still present in their underlying chips. So it could be said that the Nano X not only wins, but wins by a landslide.

    Hardware design (Winner: Trezor Model T)

    Nano X, Model T and KeepKey. Apple Airpods for scale
    Nano X, Model T and KeepKey. Apple Airpods for scale
    Size (mm)Screen Size (pixels)Screen TypeWeight
    (g)    		ConnectionControls
    Nano X72 x 18.6 x11.75128 x 64OLED34USB-C2 buttons
    Model T64 x 39 x 10240 x 240Colour22USB-CTouchscreen
    KeepKey38 x 93.5 x12.2256 x 64OLED54USB-A1 button

    Nano X’s USB Type-C is a welcome feature for any Macintosh computer users. It will become helpful as more devices switch away from USB micro-B to the newer USB Type-C.

    For the Model T, the touch screen is a welcome addition. But if you have larger fingers you may find you will have to use your pinky finger to operate the device accurately.

    Meanwhile, the KeepKey has the largest screen of the 3 and thus the easiest to see. It also definitely has the most substantial feel when holding it.

    Verdict

    Trezor Model T finds the balance between device size with the most functionally superior screen. Followed by the Ledger Nano X and the KeepKey.

    Multi-Currency Support (Winner: Ledger Nano X)

    Ledger Nano X

    It is one of the most diverse support for different cryptocurrencies with over 1800 assets supported. Many cryptocurrencies like Vechain (VET) or NEO are not found on the Model T or KeepKey, making Ledger the only hardware wallet available for many coins.

    It is also the only device which supports IDEX or Switcheo exchanges.

    Trezor Model T

    The device also supports over 1800 cryptocurrencies, and is integrated with decentralized exchanges such as IDEX and Switcheo.

    KeepKey

    Supports some of the major cryptocurrencies and 40+ ERC-20 tokens. This is substantially less than that of the Nano X and Model T.

    Verdict

    Ledger Nano X wins by having support for DEXs such as IDEX and Switcheo exchanges and exclusively supporting many more cryptocurrencies that even Model T doesn’t. Conversely from my research of top 100 market cap list, I could find only a couple of cryptocurrencies that are exclusive to the Model T or the KeepKey and not available on Ledger devices.

    This is followed by the Trezor Model T and the KeepKey in 2nd and 3rd place respectively.

    Check out our comparison of the cryptocurrencies supported by the Nano X, Model T and KeepKey. Or see the full list of supported cryptocurrencies for the Nano X, Model T and KeepKey.

    Ease of use (Winner: Ledger Nano X)

    Ledger Nano X

    Firstly, setup is a pain as you have to install the Ledger Live desktop app. Then you need to install the individual apps for each of the coins you will use.

    Note that installed apps are for usage, so if you uninstall an app to make room for another coin- you will still retain your cryptocurrency balance for the uninstalled app. This can be troublesome and is a major disadvantage of the device.

    That being said, once the initial setup is complete, the Ledger Live app is very intuitive and easy to use. The pop-up window displays all your basic information e.g. amount, date, to/from account and transaction fees (which as we see the other devices don’t do!) in a clear format.

    Ledger transaction screen
    Ledger transaction screen

    Its’ unique mobile feature, whilst controversial for some due to security concerns and whether it is practical at all, can be a huge plus for some specific users.

    Ledger Live Mobile
    Using Ledger Live on mobile

    Trezor Model T

    The Model T is comparatively easier to set up since you only need to download the Trezor bridge and then use your device via the Trezor website. Unlike the Nano X you don’t need to download any apps for the coins you want to use your device with.

    Trezor transaction screen
    Trezor transaction screen

    However, looking for information on specific transactions is overly complicated. From the above picture, you can see the information immediately displayed on the website is very basic.

    To find out more you will need to click on the time of the transaction (which isn’t obvious at all). A separate blockchain explorer window will then pop up, where you will need to find your transaction amongst a sea of others.

    Trezor explorer screen
    Trezor explorer screen-I eventually found my transaction somewhere amongst this list.

    As a relative newbie to cryptocurrency, I find this page very intimidating.

    KeepKey

    The KeepKey actually has the simplest setup, you only need to download and install the KeepKey client. You then use the device with the client only.

    The interface is the cleanest of the 3 devices. But again I find the displayed information insufficient. But unlike the Model T it is obvious that you click on “details” to find out more.

    KeepKey transaction screen
    Keepkey transaction screen

    This will open up a blockchain explorer where you again have to find your transaction like a needle in a haystack.

    KeepKey explorer screen
    KeepKey explorer screen-again my transaction was hidden somewhere on this page

    Since having been acquired by ShapeShift, the KeepKey wallet installation, setup and use was transitioned to the ShapeShift’s web platform. Installation is very straightforward and intuitive, with the user only having to download and install an updater software, while the rest of the setup happens inside the browser on the ShapeShift website.

    Sending transactions is also very smooth, and the transaction fees are also calculated at before transaction signing is required.

    Verdict

    Sending and receiving is basically the same on all 3 devices and is intuitive.

    Ledger Nano X loses points for having the additional step of installing apps for the coins you use. However it is redeemed by the clean interface and displaying just enough basic information without having to dig through the blockchain explorer.

    This is followed by the KeepKey and the Model T.

    Final score (Overall winner: Ledger Nano X)

    Ledger Nano XTrezor Model TKeepKey
    Price⭐⭐⭐⭐⭐⭐
    Security⭐⭐⭐⭐⭐⭐
    Hardware design⭐⭐⭐⭐⭐⭐
    Multi-currency support⭐⭐⭐⭐⭐⭐
    Ease of use⭐⭐⭐⭐⭐⭐
    Final score (no. of stars)13 9 8

    So now we compared the top 3 cryptocurrency hardware wallets, which one is best?

    Ledger Nano X is my top pick followed by the Trezor Model T and the KeepKey. Whilst it is not the cheapest device, it is justified by having the best security features and currency support. The initial set up is troublesome but afterwards the interface is easy to use and transaction information that I usually need to know is already available at a glance.

    Updated on 28th November 2019 by Angela Wang on the Nano X’s security certifications and multi-currency support.

  • Serum DEX ($SRM): A Guide to Using Aldrin and Raydium on Serum

    Serum DEX ($SRM): A Guide to Using Aldrin and Raydium on Serum

    Serum ($SRM) is a decentralized exchange (DEX) that offers cross-chain trading at a speed and efficiency that rivals centralized exchanges. It runs on the Solana blockchain but will be fully interoperable with Ethereum as well as Bitcoin.

    Learn how to trade on Serum DEX with Aldrin and Raydium in this video:

    There are several factors that make Serum unique. Serum is a protocol that is fully decentralized down to the core, unlike most decentralized finance (DeFi) platforms today. In fact, it does not utilize oracle price feeds at all. Instead of using the traditional automated market maker model, Serum DEX facilitates decentralized automated limit order books. Serum end-users can place orders with fully automated matching through an on-chain order book. This allows traders to have more control over their trades.

    What is the difference between Bonfida, Aldrin, Raydium, and all these markets listed on Serum?

    When you go onto the trading section on Serum, you are presented with all these markets such as Bonfida, Mango Markets, Aldrin and Raydium to name a few. But what is the difference between all these markets listed on Serum DEX? And are they the “real” Serum?

    Well, it turns out all these markets are the “real” Serum. These markets are decentralized apps (dApps) available on Serum DEX because the DEX gives users the opportunity to create their own custom financial products and dApps. These dApps can be found by entering the Serum portal and are part of the Serum ecosystem with their own interface, each competing with the other to provide the best user experience.

    In this article, we will explore the functions of two of the most popular dApps available on Serum: Aldrin and Raydium.

    How to use Raydium on Serum DEX

    What is Raydium?

    Raydium is the first automated market maker (AMM) built on Solana, enabled with lightning-fast trades, shared liquidity, and yield earning. The swap function is the simplest function available and the most user-friendly for beginner traders.

    How to trade on Raydium- Swap feature?

    To access this feature, simply click on the ‘Swap’ tab and you will be redirected to the page below.  

    raydium step 1 swap tab
    Step 1: Swap tab

    Next, you will need to connect your wallet. Once your wallet is connected, you can expand each drop-down menu to select the tokens you would like to swap. ‘From’ is the token you will pay and ‘To” is the token you will buy during the trade.

    After selecting the tokens, you can input the amount you would like to pay and receive an estimate of the amount you will receive.

    raydium step 2 insert amount
    Step 2: insert amount

    Before confirming the trade, you will want to take note of the price impact. Price impact is the difference between the market price and estimated price due to trade size. Typically, you would want minimal price impact so if the amount is 1% or 2%, you might want to reconsider the trade. This is especially important for tokens with a smaller market cap.

    To proceed with the trade, simply click on the Swap button and approve the transaction. The transaction will then be processed and completed.

    Raydium’s swap feature is simple to use and the speed of the Solana blockchain allows transactions to complete almost instantly. However, the tokens you can swap are limited and because of its simplicity, more experienced traders do not have access to additional features such as limit orders. 

    To access these more advanced features, we like to use Aldrin.

    How to use Aldrin on Serum DEX?

    What is Aldrin?

    Aldrin is a decentralized exchange (DEX) on Solana that seeks to simplify the process of digital asset trading for both beginners and advanced traders alike. There are many token pairs that can be traded on the exchange. The dashboard for traders is also pretty comprehensive and informative, with an option for users to review important token data before they conduct their trades. Aldrin makes it easier for traders to find the website of a token, its trade analytics, and other pertinent data about it.

    How to trade on Aldrin?

    To trade on Aldrin, head over to their DEX and make sure you have the Trade tab selected.

    aldrin step 1 trade tab
    Aldrin Step 1: trade tab

    Connect your wallet and select the token pair you would like to trade. For this example, we will use SOL/USDC.

    aldrin example SOL
    Adrin example SOL

    Under the Order Book section, you can see all the current buy and sell activities by other traders. 

    Adrin Step 3: Book section
    Adrin Step 3: Book section

    Aldrin’s order book allows both limit orders as well as market orders. 

    Aldrin Step 4: Select Limit Order or Market Order
    Aldrin Step 4: Select Limit Order or Market Order

    Market orders are transactions meant to execute as quickly as possible at the current market price, which may fluctuate. Limit orders allow you to set the maximum or minimum price at which you are willing to buy or sell, and the transaction will only be executed when the target price is achieved.

    How to place a market order on Aldrin?

    To place a market order, select the ‘Market’ tab and input the amount you would like to buy or sell.

    Aldrin Step 5: Input amount
    Aldrin Step 5: Input amount

    Once you have entered an amount to buy or sell, you will see the amount you will receive for the trade. Then, you can click on the Buy or Sell button to submit the trade. Upon approving the transaction, the trade will be executed.

    For first time users, it is important to note that after the trade has been executed, the funds will remain in your trading account and will not return to your wallet until you have settled your balances on the exchange.

    Aldrin Final Step: Settle Balance
    Aldrin Final Step: Settle Balance

    Simply click on Settle All and you will be able to see your funds in your wallet.

    How to place a limit order on Aldrin?

    To place a limit order, select the ‘Limit’ tab then input the amount you would like to buy or sell and the price you want to buy or sell it at.

    Aldrin Limit Order Step 1
    Aldrin Limit Order Step 1

    Once you have submitted the trade, you can go into the Open Orders tab to view all your orders.

    Aldrin Limit Order Step 2: View Order
    Aldrin Limit Order Step 2: View Order

    If you wish to cancel the order before it executes, you can do so by clicking on the Cancel button.

    Staking on Aldrin

    Staking is a passive way to grow your crypto holdings by securely locking up your selected crypto holding in return for tokenized rewards. The more tokens you stake, the more rewards you can earn. Aldrin allows you to stake RIN and mSOL tokens.

    Head over to the Staking tab to access this feature. Make sure your wallet is connected.

    Aldrin Staking Step 1
    Aldrin Staking Step 1

    Click on View to select the token you would like to stake.

    Aldrin Staking view order
    Aldrin Staking view order

    You will be able to see the estimated staking rewards, in this case it is 35.66% APR (Annual Percentage Rate). Below it, you can see the APR amount is split into two. The first APR is calculated based on fixed treasury rewards and the second APR is calculated based on the current token price and the average AMM fees.

    Enter the amount of tokens you would like to offer and click on Stake. The entered amount will show up in your Total Staked. Staking rewards are generated hourly and you can see the accumulation in the Rewards section. 

    Staking lockup lasts for one hour from the time of deposit. You will not be able to withdraw your tokens until the lock is lifted. You may click on Unstake All to enable termination. 

    Staking rewards are calculated hourly. These are then accumulated and paid out on the 27th of each month along with AMM fee revenue. You can add these new funds to your wallet by clicking the Claim button.

    Conclusion: Main features and advantages of Serum DEX

    Serum DEX is a very exciting project on the DeFi scene with a lot of promise. It has several advantages over other DeFi-based exchanges at the moment, which include:

    • Lightning fast speed
    • Low cost fees
    • Full decentralization
    • Cross-chain support
    • Fantastic user interface (UI) and user experience (UX)

    It is also more scalable than almost any other DeFi platform in existence, made possible by the Solana blockchain. As more users join the Serum ecosystem, it will be interesting to see where this project can go and the innovations that will arise from it. 

    To learn more about Serum, check out our Serum DEX guide and review. 

    Sources

    What is Serum? A DeFi Derivatives DEX Guide

    https://docs.aldrin.com/rin-token/how-to-stake-rin

  • 7 Ways to Profit During a Crypto Bear Market

    7 Ways to Profit During a Crypto Bear Market

    All financial markets experience different cycles and market conditions. Since crypto asset prices also go through prolonged periods of bullish and bearish movements, the crypto market is no exception. The most dreaded market phase for crypto traders and investors is a declining or bearish phase, especially one that sustains itself for a long time.

    General sentiments regarding the crypto and other financial markets are bleak during these periods, making many investors and crypto enthusiasts understandably worried. However, many traders still find ways to make money during unfavourable market conditions. To earn when the market is down, it is important to understand the concept of a bear market.

    Check out our video comparing the crypto bear market in 2018 vs 2022, and how you can still profit during this period of downward price trends:

    What Is a Crypto Bear Market?

    A bear or bearish market is a prolonged period characterized by falling prices of at least 20% across major crypto assets. Individual crypto assets may also be in a bear market if they experience a decline of 20% or more over an extended period. A bear market may occur due to widespread pessimism and negative market sentiment, as well as other internal or external factors. Additionally, a weak or slowing economy, pandemics, wars, and geopolitical crises are also characteristics that may cause a bear market. 

    7 Ways to Make Money and Profit in a Crypto Bear Market

    Even when the market is in an overall downtrend, the blockchain and DeFi sector offers various ways for crypto traders and investors to still emerge profitable and victorious. Here are a few lucrative options that crypto investors and traders can utilize to make money and remain afloat in a bearish market phase.

    Yield Farming

    Yield Farming is a cryptocurrency investment method that allows investors to earn interest and rewards on their crypto assets. With yield farming, investors lend their crypto assets to DeFi platforms that hold these assets in a liquidity pool for a specified period. These pools provide liquidity to decentralized finance platforms that use the funds and ensure that the depositors earn some interest over time.

    For those who are new, check out our video on the top yield farming mistakes all newbies make: 

    Crypto Staking

    Staking is the process of earning rewards by locking up funds on a blockchain. Although similar to yield farming, this process does not use tokens for loans. Instead, Proof-of-Stake (PoS) blockchains use staking to validate transactions on their networks.

    Learn more in our article: Proof of Stake explained. 

    Users who stake more tokens get higher priority to validate transactions and earn more funds. Earnings from asset staking vary between platforms and depend on the governance community in each case. Before getting involved in yield farming or staking, always do your own research and make sure the returns are sustainable, as many times, there are ludicrous and unsustainable offerings that result in users losing all of their funds. 

    Crypto Savings and Crypto Lending

    Savings and lending are good ways to make passive income from crypto during a bear market. These methods involve storing assets on a platform to earn simple interest on the deposits. Traders should remember that potential earnings mainly depend on the amount stored. Again, do your own research before allocating any capital to these types of platforms.

    Forks and Airdrops

    Altcoin forks and airdrops are also effective ways to make money in a bear market. A fork happens when users vote to diverge a blockchain and form another due to a material disagreement. This process leads to an airdrop where holders of the old token get the new tokens to participate in the forked blockchain. Depending on the value of the forked token, users can earn quite a bit by simply holding newly acquired tokens. (Modafinil)  

    Margin Trading

    One of the most common ways to make money in a down-trending market is margin trading. This method is simply the process of trading crypto assets with funds from brokers. Margin trading allows users to trade with more money than they have in their accounts, thereby increasing potential profit. Although margin trading is an effective way to earn in a bear market, this method is only recommended to experienced crypto traders, as you can lose the entirety of your initial capital if the market moves in the opposite direction of your call.

    Analyze Smaller DeFi Projects

    A new DeFi project may have a low valuation after launch, but show huge promise in the long run. Crypto enthusiasts who take the time to analyze and research these projects can likely find and profit from the right ones. Even in a bear market, crypto investors who get in early enough tend to make gains from the increase in the asset prices of these crypto projects.

    Dollar-Cost Averaging 

    One of the most effective ways to thrive in a bear market is to buy the dip. With dollar-cost averaging, investors buy assets at consistent intervals and properly observe market conditions before reinvesting. Since the cryptocurrency market’s volatility is unpredictable, it is nearly impossible to predict the lowest point before a reversal. Hence, dollar-cost averaging helps investors maximize profits by allowing them to buy at low points before the market becomes bullish. You lower your risk by lowering your potential downside and upside, but also allocating capital in a way where you will not only hit peaks and troughs.

    Next Steps

    Any crypto market condition has potential for profitability if you know how to play it right. The above strategies can help even novice crypto traders earn when the market is bearish. However, traders should note that their preferred strategy should depend on their risk tolerance and portfolio size. Traders should also learn to study the market to ensure that the chosen method will be effective at a particular time.

  • Crypto BEAR MARKET NOW (2022) VS 2018: Similarities & Differences

    Crypto BEAR MARKET NOW (2022) VS 2018: Similarities & Differences

    The crypto market, together with stock markets and the global economy in general, have been experiencing a significant drawdown for the past 6 months, leading to a confluence of factors ranging from high inflation, rate hikes, supply chain issues, energy crisis, to geopolitical instability. This combination packs a powerful punch for any risk-on markets, such as stocks and crypto, forcing retail and institutional investors to exit their capital from markets during these uncertain times.

    With Bitcoin currently at $20k, down 70% from its $69k ATH, and the total altcoin marketcap being down 72% from its ATH, it is hard to deny that we’ve entered a bear market. But one question remains – is this anything like the bear market of 2018 and will it last equally as long as the previous one? Let’s dissect the situation and understand if this time is truly different, or if this is just a small bump in the road before an accelerated bull market.

    Check out our video comparing the crypto bear market now (2022) and in 2018- and more importantly, how to STILL make money during this downturn:

    2018 Bear Market

    2017 saw the first true mass influx of retail interest into the crypto space. Bitcoin saw a rapid increase in price, everyone’s friend and grandma were kickstarting their own ICOs to attract funds, and regular companies added the blockchain keyword to their names to increase their share prices. 2017 was the wild west, as there was even less regulation than currently, and the space was rife with opportunists spawning scam projects to extract money from ignorant first-time crypto investors.

    But, as with any bubble, it eventually pops. The crypto space was heavily overheated, with investors throwing money at everything that moved, doing minimal to no due diligence, just to get on the crypto hype train. Come 2018, things were starting to cool down and people were beginning to feel the pain. In less than 6 months after the peak ICO craze, over 90% of all the projects were already dead, with many more to go down with them in the rest of the 18-month long bear market.

    At the peak of the market, a lot of FUD (fear, uncertainty and doubt) was beginning to circulate. Fear of regulation due to the prevalence of scams, and with China/Korea considering banning cryptocurrencies, things were not looking great for the crypto space. Right around the peak of the market, the Chicago Mercantile Exchange (CME) launched their Bitcoin futures product, which allowed institutional investors to get their hands dirty with Bitcoin. And, naturally, they did just that. With all of the FUD circulating and the market waiting to release a lot of pressure, institutions began shorting the market, creating an enormous sell pressure that brought BTC down to $7k, which kept grinding down to $3k till mid-2019.

    2022 Bear Market

    After Covid-19 hit, the market experienced a tiny two-month recession. As everyone was locked inside, demand dropped and supply shrunk as well. But once central banks began printing more money to help businesses and people via stimulus checks, many found themselves with a lot of extra cash and no way to spend it, so they turned to investing. After the March crash, the rest of 2020 saw the crypto market boom, calling it the “DeFi summer”, with BTC increasing in price by 400% by the end of the year. After that, it just kept on going. 2021 was the year of the NFTs and Metaverse, i.e. GameFi, with numerous projects sprouting up to capture some of the value amid all the hype.

    After reaching its peak in November 2021, the crypto market has kept on steadily grinding down. Those who had called the peak in November aptly understood that the markets were overheated, inflation was starting to get out of hand, and the only way for governments to keep that under control was to begin quantitative tightening through rate hikes. Unfortunately, many were still in denial about the onset of the bear market way into April, which has resulted in a lot of people holding bags that might or might not recover.

    Now the path forward seems clear. The US Federal Reserve’s hawkish monetary policy is causing markets a lot of necessary and unavoidable pain. Because the money printing since Covid-19 has been at such an unprecedented level, the Fed is finding it hard to slow down the inflation without causing a lot of damage. The result currently is a looming recession at the same time as inflation is still running rampant and driving up the prices of everything, all the while people’s incomes are stagnating and their expenses increasing.

    When is the Next Bull Cycle?

    At the moment, there are no clear signs of central banks reeling in their hawkish monetary policies. It might possibly take at least several months if not until the end of the year for the dust to settle, the bottom to come in, and for us to be ready for the next bull cycle once the Fed eases monetary restrictions. Continued geopolitical turbulence aside, the next bull cycle will certainly come, but it’s difficult to say what will be the narratives driving the rapid market expansion this time.

    The two most touted bull market catalysts are the long-awaited Bitcoin spot ETF and the Ethereum Merge, which will cause the Ethereum network to transition from its wasteful Proof-of-Work mechanism to Proof-of-Stake. However, as is common in life and in markets, the most obvious things tend not to be the ones to catalyze huge changes. Markets are irrational, and a confluence of new narratives that will be born only in 6 months might very well end up triggering the next bull run.

    How to Still Make Money During the Crypto Bear Market?

    With great pain come great opportunities, and this bear market is no exception. This is the time for learning, accumulating, and paying attention to the market. In our latest video about the current bear market, we outline a few strategies that you can use as an investor to maximize upside potential come next bull run:

    1) Dollar cost averaging (DCA) into your investments – instead of trying to catch the generational bottom and investing your whole capital in one go, better invest 20% of your capital at a time during a longer time period, so that way you are more likely to get a great average entry price and reap the profits in the future.

    2) Doing lots of research – fundamental analysis of projects is the best way to ensure you invest in projects that have a real potential, and this is the time to be doing just that. Many projects will die during this bear market, so it’s important to source trustworthy information and be critical of everything in order to position yourself properly during the next stage of growth.

    3) Diversify your portfolio – as we’ve seen in the past months, there’s no such thing as too big to fail in the crypto space. Instead of going all-in on one project, spreading risk across several projects will ensure your capital is better protected from a few bad investments.

     4) Shorting the market – this should not be practiced by anyone who doesn’t have experience trading, as without proper risk management things can get pretty ugly very fast. During a downtrend, a way to make money is by shorting an asset, which essentially means you’re betting on an asset to go down in value.

    Of course, none of this is financial advice, and we implore our readers to do their own research and never invest more than they are willing to lose. It’s a highly volatile market and not for the faint of heart.