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Cryptocurrency

Explained: Centralised and decentralised cryptocurrency exchanges

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Data obtained from thecrypto analytics firm says that, the number of Bitcoin addresses having at least 0.1 BTC has risen by 14% over the past one year, Did Satoshi Nakamoto cause the panic sell-off in Bitcoin market, Bitcoin hits $8,826, Pigs hit hard at BTC market, plunges 8%

Cryptocurrency exchanges play a key role in the cryptocurrency market, as they are the primary means of exchange in a market valued at over $450 billion. There are two types of cryptocurrency exchanges: centralised exchanges and decentralised exchanges.

A centralised exchange is one where deposits, withdrawals, and the order book, are controlled by one party, which is the exchange. Simply put, the exchange holds depositors’ funds and a record of buy and sell transactions. Examples of centralized exchange include Luno and Binance.

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In a decentralised exchange, there are no middle parties. Transactions are directly between each user. Examples of decentralised exchanges include EtherDelta and Idex.

Advantages of a centralised exchange

Centralised exchanges are easier to use. Most centralised exchanges require an email address, password, and username. They also have a wider variety of coins one can pick from.

Disadvantages of a centralised exchange

Centralised exchanges are prone to hacking since they hold users’ funds. A large proportion of the exchanges that have recently been hacked are centralised.

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Centralised exchanges also store users’ records which denies them true anonymity, as they can easily be traced through their emails and identification cards. In some cases, the exchanges hand over this data to the government or regulators.

Also, users have to rely on the exchange to authenticate transactions.

Advantages of a decentralised exchange

Decentralised exchanges are much more difficult to hack since information is spread across different servers. Funds are also held by the users, which lessens the risk of hacking.

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Disadvantages of a decentralised exchange

Decentralised exchanges are often difficult to use. This is largely due to the mode of authentication using public and private keys. In the event of the private key being lost, users in many cases will have no access to their funds, as not even the exchange has access to them.

Difficulty in using such exchanges means that they have fewer users. Coins that are not listed on any other exchange tend to do quite poorly in terms of price. For the average investor, a price increase is the most important reason for holding cryptocurrencies. This is only possible with frequent trading.

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Patricia

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via [email protected]

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Cryptocurrency

Whales move 100,000,000 USDT in less than 24 hours

Tether is ranked as the 3rd most valuable cryptocurrency by market cap.

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Whales move 100,000,000 Tether, USDT in less than 24 hours

Tether, the world’s most valuable stable coin by market capitalization, has been gaining a lot of traction lately. The latest development is that Tether whales moved about 100 million USDT to unknown wallets in less than a day, as seen on Whale Alert, an advanced blockchain tracker, and analytics system.

Data from Conimarketcap shows that Tether is ranked as the 3rd most valuable cryptocurrency by market cap of $9.165 billion, with a daily volume of about $20 billion as at the time this report was drafted.

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Quick fact: Tether is designed as a blockchain-based cryptocurrency whose digital coins in circulation are backed by the same value of traditional fiat currencies like the U.S dollar, Japanese Yen, or the Euro. It trades under the ticker symbol USDT.

READ ALSO: Fastest growing cryptocurrency, Compound (COMP) up over 143% in 24 hours

The “Tether Treasury’s” USDT wallet has grown in recent times in becoming the top holder of the stablecoin, meaning that some crypto traders, investors may have managed to successfully withdraw their stakes from circulation. The removal of about 29% of the total volume of Tether in circulation has recently coincided with a huge depletion in the amount of Tether held in 2 USDT wallets separately owned by Huobi and Binance.

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Recall about a month ago, Nairametrics, outlined a report talking about the organic growth of Tether’s market capitalization as one of the major reasons for the gain Bitcoin (BTC) is presently having in the mid-term. “Interest in digital links to the dollar represents the need to handle and store value in the world’s reserve currency without an intermediary.”

READ ALSO: 13,000 BTC wallets are now worth more than $1,000,000

Tether expected to surpass Ethereum, based on strength of the U.S dollar

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Patricia
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Cryptocurrency

$30 billion worth of BTCs disappears forever 

Data from Coinmarketcap shows that BTC is presently trading around the $9300 support levels.

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Bitcoin users rise in Nigeria despite Senate, CBN campaign against it, Nigerians losing millions to crypto fraud, Investing in cryptocurrencies in this economic shutdown, Bitcoin could hit above $100,000 by August 2021, Hedge funds, Institutional investors rush to have a stake in Bitcoin, An unknown Bitcoin whale moved $1.3 billion in few mins. Binance, Bitfinex Coinbase, Huobi, receive about 40% of all BTCs 

When access to a BTC wallet disappears, the BTC is lost forever. Data retrieved from Coincover, a British crypto analytic firm, showed that about 4 million BTCs are (worth some $30 billion at current prices) lost as a result of BTCs owners dying, and their next of kin not having access to such BTC wallet  

As BTCs and cryptos become more prominent in human daily activities, the volume of BTC being lost forever is more likely to surge  

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READ ALSO: 83% of BTCs addresses are smiling to the Bank 

“As bitcoin becomes more popular and its value continues to increase, considering how to manage it as part of an estate planning exercise is becoming increasingly difficult,” said David JanczewskiCoincover’s co-founder and chief executive, adding that, with bitcoin, “there’s no bank manager to ask, and no one can break in for you.” 

Explore useful research data from Nairametrics on Nairalytics

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What you need to know: Only 21 million BTCs are ever going to be produced in total, and presently, there are about 18.5 million BTCs in circulation. This shows a differential of about 2.5 million BTCs that are left to be produced. 

Meanwhile, data from Coinmarketcap shows that BTC is presently trading around the $9300 support levels, with a market capitalization of over $170 million dollars and the flagship cryptocurrency having a trading volume at around $13.8 billion, 

READ ALSO: There are now 13,173 BTC millionaires around the world

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BTC transformed digital money by decentralizing this accounting process. Instead of a central figure that is responsible for making sure that their users’ transactions were always adding up, BTC works by sharing the account balances and transactions of every user across the globe in a pseudonymous form. 

Patricia
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Cryptocurrency

Crypto-Scammers stole $24 million worth of BTCs in 2020  

A crypto scammer made away with over $1.5 million within the period of 6 months.

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Crypto-Scammers stole $24 million worth of BTCs in 2020  

Crypto Scammers gained about $24 million worth of BTC in the first six months of 2020, according to reports from watchdog Whale Alert.   

As the COVID-19 pandemic kept a lot of individuals more active online, scammers have pulled dozens of different types of scams such as fake ICO’s, BTC recovery, fake exchanges, giveaways, video scams, fake tumblers, Ponzi schemes, malware and many more.   

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Some of the most successful scams include a crypto fraudster making more than $130,000 in 24 hours with just a single web page, a BTC address, and decent amount publicity on YouTube.    

Explore useful research data from Nairametrics on Nairalytics

Another crypto scammer made away with over $1.5 million within the period of 6 months promoting a fake crypto exchange with a poorly designed website riddled with typo errors.   

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The scammer deceives their intended victims by offering one or all of the following that includes no taxes, high profits, little effort, and no risk, it’s thus projected by Whale alert that these fraudsters could gain about $50 million dollars before the end of 2020  

Recall that a few months ago Nairametrics had earlier reported how thousands of Bitcoin investors have, over time, been defrauded of their hard-earned money around the world. The crypto fraudsters use both old and new tactics to defraud their targets in schemes based on BTC exchanged through online ledgers known as the blockchain. 

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READ ALSO: How to protect your bank accounts from hackers and fraudsters

However, you should remember that the use of cold wallets or a proprietary smartphone is recommended. These are specifically designed tools to keep your bitcoin from falling into the hands of hackers on the internet. 

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READ ALSO: BTC whale moves 19,630 BTC valued at $185,000,000

Next time you are thinking of investing your funds in a BTC fund or firm, consider the promised returns versus the performance of the cryptocurrency market.  

 

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