Trezor Blog – Medium

Trezor Blog – Medium






Trezor Blog – Medium https://blog.trezor.io?source=rss—-4b757f6fc8b0—4
The official blog of the world’s first and most trusted hardware wallet — Trezor. Articles about everything you need to know to keep your bitcoins and digital identity safe. – Medium
Trezor Blog – Medium https://blog.trezor.io?source=rss—-4b757f6fc8b0—4
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What happens to lost bitcoin? https://blog.trezor.io/what-happens-to-lost-bitcoin-71eb5a80cc74?source=rss—-4b757f6fc8b0—4
https://medium.com/p/71eb5a80cc74
<p><em>[unable to retrieve full-text content]</em></p><figure><img alt=”” src=”https://cdn-images-1.medium.com/max/1024/1*kInE7wrrcQ9lGCILGkWjsQ.png” /></figure><p>Every year, millions of dollars worth of bitcoin and other digital assets are lost. In most circumstances, these coins cannot be retrieved and permanently exit the currency’s circulating supply. More often than not, lost coins can be traced back to user error, so let’s take a look at how to avoid costly mistakes.</p><h3>Where the missing coins go</h3><p>Unlike fiat currencies like the US dollar, Bitcoin was designed to have a limited supply. While more bank notes can always be printed by the Federal Reserve, new bitcoin cannot be issued once all 21 million coins have been mined.</p><p>Lost and destroyed Bitcoin further shrinks the currency’s maximum supply. According to <a href=”https://static1.squarespace.com/static/5d580747908cdc0001e6792d/t/5e98dde5558a587a09fac0cc/1587076583519/research+note+4.17.pdf”>Cane Island Digital Research</a>, 4% of available bitcoin is lost each year. Despite Bitcoin being designed with a limited supply of 21 million coins, Cane Island estimates that a maximum of only 14 million bitcoin will ever circulate due to the rate at which coins are lost.</p><p>A <a href=”https://blog.chainalysis.com/reports/bitcoin-market-data-exchanges-trading”>report</a> cited by the New York Times states that, of the 18.5 million bitcoin mined so far, an estimated 20 percent appear to be inaccessible or lost. At the time of the NYT report, the value of this inaccessible bitcoin was somewhere in the ballpark of $140 billion USD. Proponents theorize that lost coins only serve to increase the value of the remaining currency, as they increase Bitcoin’s scarcity.</p><h3>How can Bitcoin get lost, stolen, or destroyed?</h3><p>There are a few ways in which bitcoin can get lost or destroyed. The most common of these boil down to mistakes made when storing or sending the asset.</p><h4>Bitcoin sent to fraudulent or inaccessible addresses</h4><p>When sending bitcoin from one wallet to another, the user is asked for a string of 26 to 35 characters which serves as the recipient’s address. Most wallets are actually extremely robust when it comes to making sure that this alphanumeric string matches the public key of a cryptocurrency wallet that actually exists. In other words, sending Bitcoin to the wrong address due to a typo is exceedingly rare.</p><p>What is far more common, however, is sending bitcoin to the wrong wallet as a consequence of getting two addresses mixed up. A user might, for instance, send bitcoin to an address belonging to a fraudulent actor rather than the wallet address of a family member. They could also accidentally send bitcoin to a wallet they previously conducted business with rather than to the intended recipient of a new transaction. As long as someone has access to the receiving wallet, those coins should still remain in circulation.</p><p>Bitcoin can also be sent to burn addresses or wallets that people have lost access to. Since bitcoin is immutable, there is no way to undo these transactions. Burn addresses, in this context, are those which belong to wallets that are virtually impossible to spend coins from. Sending coins to these addresses is equivalent to putting money into a safe that no one will ever be able to open.</p><p>In some instances, cryptocurrencies are intentionally sent to burn addresses. This process is known as “burning”. Some crypto assets use unspendable addresses in order to prove they are limiting the supply of their own currency. There is even a consensus mechanism known as <a href=”https://en.bitcoin.it/wiki/Proof_of_burn”>proof-of-burn </a>built around this process.</p><h4>Thousands of coins are lost each year due to improper storage</h4><p>People frequently lose bitcoin due to how they store them. For instance, many people store their bitcoin online on exchanges. In doing so, they are relying on the exchange to keep their assets secure. While there are certainly reputable exchanges operating in the world today, there have been a plethora of cases throughout the last decade where exchanges have stolen their users’ assets or failed to prevent hackers from doing so.</p><p><a href=”https://blog.trezor.io/why-you-should-not-store-cryptocurrency-on-exchanges-7a3ceb7fd0c1″>Why you should not store cryptocurrency on exchanges</a></p><p>According to <a href=”https://atlasvpn.com/blog/blockchain-hackers-have-stolen-over-13-6-billion-in-330-hack-events”>Atlas VPN</a>, blockchain hackers stole nearly $3.78 billion USD worth of digital assets across 122 attacks in 2020. These attacks included notable examples such as hackers stealing around $150 million USD in cryptocurrencies from an exchange in Singapore which stored a portion of its assets in hot wallets.</p><p>When you store a cryptocurrency like Bitcoin, you can either do so by storing your assets in a hot wallet or a cold wallet. The former refers to wallets which are internet-connected, offering increased accessibility. They can easily be used without any dedicated hardware and often take only a few minutes to set up. However, this storage method is vulnerable to breach.</p><p>Cold wallets, on the other hand, are ways of storing your cryptocurrencies offline. They are much more secure, as they prevent hackers from gaining access. However, not all cold wallets are equally user-friendly. A significant amount of bitcoin has been permanently lost due to people <strong>losing the </strong><a href=”https://wiki.trezor.io/Private_key”><strong>private key</strong></a> which grants them access to their wallet. In addition, there have been many cases of hardware being misplaced or failing where the user didn’t create a backup, making the funds impossible to retrieve.</p><p>Every year, there are hundreds of stories about people losing their private key or throwing away a drive that had their Bitcoin wallet on it. This year, for instance, a programmer in San Francisco made <a href=”https://www.nytimes.com/2021/01/12/technology/bitcoin-passwords-wallets-fortunes.html”>headlines</a> when he found himself locked out of an encrypted drive with a reported $220 million USD worth of bitcoin stored on it. According to the article, he only has two remaining attempts to input the correct password before his coins are permanently lost.</p><h4>Billions of dollars worth of bitcoins are in limbo</h4><p>Zombie coins are those with addresses that have not had any outgoing transactions for years yet could theoretically still be accessed. One such address is associated with the infamous <a href=”https://www.wired.com/2014/03/bitcoin-exchange/”>Mt. Gox hack</a>. This address has been holding 79,957 bitcoin since 2011, and no one knows for sure if those coins will ever re-enter circulation. It stands to reason that the owner may be deceased or have lost access to their wallet. At today’s bitcoin price, the current holdings of this wallet address are worth more than $4.8 billion USD.</p><h3>How to keep your bitcoin safe</h3><p>Since most cases of lost bitcoin can be chalked up to user error, the good news is that keeping your assets safe is relatively easy once you know what to look out for.</p><h4>What to look out for when spending bitcoin</h4><p>When sending bitcoin transactions, the first thing to pay attention to is the recipient’s address. As we covered in the previous section, most wallets are effective at preventing you from sending a transaction to an address that does not actually exist. However, you do have to consciously <strong>make sure that you have not mixed up two valid addresses</strong>. For instance, you might have an old address in the recipient field which you forgot to change.</p><p>Double checking that you have the correct address is crucial, as the crypto industry is rife with phishing scams which attempt to deceive people into sending digital currencies to their address. These scammers often pretend to be an authority or someone you know. Once you send bitcoin to them, there is no way to undo the transaction.</p><p><a href=”https://blog.trezor.io/bitcoin-addresses-and-how-to-use-them-35e7312098ff”>Bitcoin Addresses and How to Use them</a></p><p>Further, fraudulent browser tools and malware can make it look like you are sending bitcoin to the right recipient when you are actually sending your money to a scammer. In order to ensure that you are not victim to malware or fraud, it is important to have a way to know exactly what address you are including the transaction..</p><p>Some physical storage wallets, such as Trezor, protect your bitcoin by allowing you to verify the transaction address you are signing, through a <a href=”https://blog.trezor.io/what-are-you-looking-at-why-the-trusted-display-of-a-trezor-is-guaranteed-to-boost-your-security-d1545f0e48e9″>trusted display</a>. This means that even if malware or a fraudulent browser extension changes the address you see on your screen, Trezor will still display the actual address so that you can cancel the transaction.</p><p>The next thing to do when conducting a transaction is to check that you are setting an appropriate fee. With Trezor, optimal fees are calculated according to estimated confirmation times, or you can set a custom fee of your own. Some crypto wallets auto-fill fees or suggest ones which are grossly overstated so it’s a good idea to look up <a href=”https://whatthefee.io/”>current fee confirmation times</a> to work out how much to spend.</p><p>Double checking the fee is important as there have been some cases in the past where people have accidentally sent small transactions and paid exorbitant fees. For instance, <a href=”https://decrypt.co/31830/someone-just-made-a-2-6-million-mistake-on-ethereum”>Decrypt</a> reported that an address paid over 2.6 bitcoin in fees just to send 0.01088549 BTC. Further, setting too low a fee can slow down your transaction or cause it to become stuck. If this happens, Trezor’s <a href=”https://blog.trezor.io/fixing-bitcoin-transaction-problems-using-rbf-23dca3d26746″>replace by fee</a> feature will help you increase the fee to one that will confirm quicker.</p><h4>How to safely store your digital assets</h4><p>When storing cryptocurrencies, the safest option is to opt for cold storage by using a hardware wallet. These are far more secure than the hot wallets that you find online. By storing assets on secure hardware that is not connected to the Internet, you are able to mitigate any potential risk of breach.</p><p>In order to avoid losing access to your bitcoin in the event of a misplaced device or hardware failure, it is important to have a backup solution in place. This solution can be as simple as having a backup drive that stores a copy of your wallet. However, you still run a risk of the device failing or being compromised when you connect it.</p><p>Cryptocurrency storage solutions such as Trezor let you to store your cryptocurrencies offline, allowing you to avoid the risk of having your assets stolen. Trezor is also equipped with a way to regain access to your coins should something happen to your physical device.</p><p>When you first use a Trezor, it will generate a recovery seed that is 12 to 24 words long and lets you recover all the coins you store on it. It is important to keep this recovery seed secure in physical form such as handwritten on paper — never store it digitally. In the event that you cannot access your device, you can use this recovery seed to restore access to your bitcoin. The latest Trezor Model T can even create a split backup, called a <a href=”https://blog.trezor.io/shamir-backup-the-revolution-of-private-keys-backup-is-here-858687ed7fe7″>Shamir backup</a>, which will recover your coins even if you lose a part of it.</p><h3>What to do if you’ve lost coins</h3><p>If you happen to find yourself in a situation where you have lost access to your bitcoin, your best course of action depends on the cause.</p><h4>You’ve sent bitcoin to the wrong address</h4><p>If you have sent bitcoin to the wrong wallet address by mistake, there is unfortunately no way to directly reverse the transaction. In this situation, your best bet is actually to contact the wallet holder and ask if they would be willing to refund the transaction.</p><p>One way to do this is using the OP_RETURN feature to send a message to the address explaining the mistake. Understand that this method will make any sent coins unspendable, so make sure only pay the necessary fee.</p><p>While this is a complete shot in the dark, it may be worth trying if you have no other options.</p><h4>Your assets were stolen</h4><p>In the event that your bitcoin was stored on a hot wallet or on a breached cryptocurrency exchange, your next course of action is probably a legal route. Unfortunately, there are very few paths for pursuing stolen bitcoin but it is best to alert the community with details of the transaction.</p><p>That said, there might be light for a small portion of users in this category. Some people are only now being <a href=”https://www.zdnet.com/article/if-you-lost-bitcoin-in-mt-gox-scandal-there-is-now-a-chance-of-some-recovery/”>offered a route to compensation</a> for a portion of their holdings that were stolen in the infamous Mt Gox breach of 2014.</p><h4>Your transaction is stuck</h4><p>If your bitcoin is stuck because you’ve set the wrong fee for a transaction, you can leverage a method known as <a href=”https://wiki.trezor.io/Replace-by-fee_(RBF)#:~:text=Bump%20a%20transaction%20fee,-Choosing%20to%20bump&amp;text=Once%20a%20new%20fee%20is,fee%20bumps%20will%20be%20paid.”>Replace-by-fee</a> (RBF) in order to bump it — if your wallet supports this feature. Doing so allows you to replace the stuck transaction with an identical one that offers a higher fee and is more likely to be confirmed. Check out our <a href=”https://blog.trezor.io/fixing-bitcoin-transaction-problems-using-rbf-23dca3d26746″>guide to fixing bitcoin transactions through RBF</a>.</p><h4>You’ve lost or damaged your hardware wallet or digital backup</h4><p>If you were using a cold storage wallet and have since lost access to it, you have a few options. In the event that the hardware has failed or become damaged and you do not have a backup, you may have some luck letting a reputable data recovery team have a crack at it.</p><p>If you’re using a Trezor, you can regain access to your wallet by inputting your recovery seed. Trezor’s online <a href=”https://wiki.trezor.io/User_manual:Recovery”>user manual</a> is easy to follow and can help you navigate the recovery process so that you can regain access to your Bitcoin.</p><figure><a href=”https://shop.trezor.io/product/trezor-model-t?utm_source=blog&amp;utm_medium=banner&amp;utm_campaign=what-happens-to-lost-bitcoin”><img alt=”” src=”https://cdn-images-1.medium.com/max/1024/1*LWx9bte1k7UT_HbOKt32RQ.jpeg” /></a></figure><img src=”https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=71eb5a80cc74″ width=”1″ height=”1″ alt=””><hr><p><a href=”https://blog.trezor.io/what-happens-to-lost-bitcoin-71eb5a80cc74″>What happens to lost bitcoin?</a> was originally published in <a href=”https://blog.trezor.io”>Trezor Blog</a> on Medium, where people are continuing the conversation by highlighting and responding to this story.</p> Thu, 25 Mar 2021 16:02:40 +0000 SatoshiLabs
https://blog.trezor.io/what-happens-to-lost-bitcoin-71eb5a80cc74?source=rss—-4b757f6fc8b0—4
security
bitcoin
cryptocurrency
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guides-and-tutorials


How to be a successful crypto trader: the trading mindset https://blog.trezor.io/how-to-be-a-successful-crypto-trader-the-trading-mindset-6dc131005f5f?source=rss—-4b757f6fc8b0—4
https://medium.com/p/6dc131005f5f
<section class=”cu cv cw cx aj cy cz s”></section><span class=”s”></span><div><div class=”t v dg dh di dj”></div><section class=”dk dl dm dn do”><div class=”n p”><div class=”ab ac ae af ag dp ai aj”><h2 id=”2b7c” class=”dq dr ds cd b ce dt du dv dw dx dy cg ch”><strong class=”ax”>Cryptocurrency Trading</strong></h2><div class></div><div class><h2 id=”332b” class=”ey ea ds cd b ez fa fb fc fd fe ff fg fh fi fj fk fl fm fn fo cg”>by <a href=”https://twitter.com/nebraskangooner” class=”cj fp” rel=”noopener”>Nebraskan Gooner</a>, professional trader</h2><div class=”fq”><div class=”n fr fs ft fu”><div class=”o n”><div><a href=”https://medium.com/@satoshilabs?source=post_page—–6dc131005f5f——————————–” rel=”noopener”><img alt=”SatoshiLabs” class=”s fv fw fx” src=”https://miro.medium.com/fit/c/96/96/1*Ssz_O5SEk4sJ2NIrwl4uOw.png” width=”48″ height=”48″></a></div><div class=”fy aj s”><div class=”n”><div style=”flex:1″><span class=”cd b fz cf ex”><div class=”ga n o gb”><span class=”cd b fz cf bj gc gd ge gf gg gh ex”><a href=”https://medium.com/@satoshilabs?source=post_page—–6dc131005f5f——————————–” class=”cj ck at au av aw ax ay az ba gi bd cn co” rel=”noopener”>SatoshiLabs</a></span><div class=”gj s ap h”><span><a href=”https://medium.com/m/signin?actionUrl=https%3A%2F%2Fmedium.com%2F_%2Fsubscribe%2Fuser%2Fb8686215a986&amp;operation=register&amp;redirect=https%3A%2F%2Fblog.trezor.io%2Fhow-to-be-a-successful-crypto-trader-the-trading-mindset-6dc131005f5f&amp;source=post_page-b8686215a986—-6dc131005f5f———————follow_byline———–” class=”cd b ce cf gk gl gm gn go gp gq ba gr gs gt gu dc gv gw cz gx gy” rel=”noopener”>Follow</a></span></div></div></span></div></div><span class=”cd b fz cf cg”><span class=”cd b fz cf bj gc gd ge gf gg gh cg”><div><a href=”https://blog.trezor.io/how-to-be-a-successful-crypto-trader-the-trading-mindset-6dc131005f5f?source=post_page—–6dc131005f5f——————————–” class=”cj ck at au av aw ax ay az ba gi bd cn co” rel=”noopener”>Mar 23</a> <!– –>·<!– –> <!– –>5<!– –> min read</div></span></span></div></div><div class=”n gz ha hb hc hd he hf hg z”><div class=”n o”><div class=”hh s ap”></div><div class=”hh s ap”></div><div class=”hh s ap”></div><div class=”hj s”><div class=”hi”><span></span></div></div><div class=”s an”></div></div></div></div></div></div></div></div><div class=”hk”><div class=”n p”><div class=”hl hm hn ho hp hq af hr ag hs ai aj”><figure class=”hu hv hw hx hy hk hz ia paragraph-image”><div role=”button” tabindex=”0″ class=”ib ic id ie aj if”><div class=”cw cx ht”><div class=”il s id im”><div class=”in io s”><div class=”ig ih t u v ii aj bj ij ik”></div><div class=”ftr-noscript”><img alt class=”t u v ii aj” src=”https://miro.medium.com/max/8000/1*x_2oLxwrqYMQM9QZknHwEw.png” width=”4000″ height=”1440″ srcset=”https://miro.medium.com/max/552/1*x_2oLxwrqYMQM9QZknHwEw.png 276w, https://miro.medium.com/max/1104/1*x_2oLxwrqYMQM9QZknHwEw.png 552w, https://miro.medium.com/max/1280/1*x_2oLxwrqYMQM9QZknHwEw.png 640w, https://miro.medium.com/max/1456/1*x_2oLxwrqYMQM9QZknHwEw.png 728w, https://miro.medium.com/max/1632/1*x_2oLxwrqYMQM9QZknHwEw.png 816w, https://miro.medium.com/max/1808/1*x_2oLxwrqYMQM9QZknHwEw.png 904w, https://miro.medium.com/max/1984/1*x_2oLxwrqYMQM9QZknHwEw.png 992w, https://miro.medium.com/max/2000/1*x_2oLxwrqYMQM9QZknHwEw.png 1000w” sizes=”1000px” role=”presentation”></div></div></div></div></div></figure></div></div></div><div class=”n p”><div class=”ab ac ae af ag dp ai aj”><p id=”15bc” class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>Everyone wants to make more money. That’s why trading and investing make such attractive side-hustles and even more attractive professions. Many people will have a go at trading and fail. Beginner’s luck is real and most enter the markets during extremely bullish conditions when assets are moving straight up.</p><p id=”b285″ class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>The “it’s easy money” and “I’m quitting my job to become a full-time trader” self-proclaimed geniuses are everywhere during these conditions. That leaves them vulnerable to corrections which they aren’t sure how to handle. Their lack of preparation and understanding of market cycles leaves them buying dips over and over until they run out of capital and end up selling at a large loss.</p><p id=”752a” class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>As with any hobby or profession, there’s preparation that should take place prior to engaging. Most who start out aren’t prepared to do their due diligence and learn how markets work. If you want to be good at something you need to study for hours and hours. Practice makes perfect.</p><p id=”6a53″ class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>I’m going to share with you how to get started in this crazy world so you <strong class=”iu jo”>don’t become a rekt noob</strong>.</p><h1 id=”8903″ class=”jp jq ds cd jr js jt iw ju jv jw iz jx jy jz ka kb kc kd ke kf kg kh ki kj kk ex”>Be ready to learn</h1><p id=”a67f” class=”is it ds iu b ez kl iw ix fc km iz ja jb kn jd je jf ko jh ji jj kp jl jm jn dk ex”>If someone told you they’d give you $500,000 for making a free throw with a basketball — but you had to give them $25,000 if you miss — would you take that bet? If you were a professional basketball player with hours and hours of practice, yes you probably would. But if you’ve never shot a basketball before in your life, you’d turn it down, because 99% of people with zero basketball experience would miss the shot.</p><p id=”cd14″ class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>This is exactly what happens with trading and investing. There’s so much to understand and everyone wants to start making money right away. This leads people into blindly following random cartoon characters trading “calls” on Twitter or jumping into every large pump they see without understanding what’s happening.</p><p id=”4e46″ class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>Many people end up losing a lot of their net worth through being over exposed and <strong class=”iu jo”>putting too much of their money at risk</strong>, without having the slightest clue what they’re doing with it. Imagine telling a friend you lost $10,000 because you listened to a cartoon animal on Twitter. Sounds silly, doesn’t it?</p><h1 id=”d4a7″ class=”jp jq ds cd jr js jt iw ju jv jw iz jx jy jz ka kb kc kd ke kf kg kh ki kj kk ex”>Pick and choose your signals</h1><p id=”6744″ class=”is it ds iu b ez kl iw ix fc km iz ja jb kn jd je jf ko jh ji jj kp jl jm jn dk ex”>Knowing where to start learning about the markets can be challenging. Here’s my tips on where to go first.</p><p id=”e34e” class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>You’re probably already on Twitter. Make sure you follow accounts that post multiple viewpoints on assets. You want well thought-out content that shows logical reasoning. Skip to the end of the blog for a list of accounts I’ve learned a lot from so far.</p><p id=”c9af” class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>Unfollow people who share outrageous upside targets all the time and never once mention risk management. Those posts will not help you — they make you feel. <strong class=”iu jo”>You want</strong> <strong class=”iu jo”>posts that make you think</strong>. Emotions will only hinder you, while thoughts will improve your chances of success.</p><h1 id=”3d28″ class=”jp jq ds cd jr js jt iw ju jv jw iz jx jy jz ka kb kc kd ke kf kg kh ki kj kk ex”>What to learn before you start trading</h1><p id=”4a1a” class=”is it ds iu b ez kl iw ix fc km iz ja jb kn jd je jf ko jh ji jj kp jl jm jn dk ex”>If you came here to find the cheat codes on how to become a good trader or investor then you came to the wrong place. You will never find the easy answer because there is no easy way to learn the markets. You have to work hard and study independently if you really want to conquer them.</p><p id=”c991″ class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>Here’s some very important information you can learn to give yourself an advantage against other market participants.</p><p id=”3b75″ class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”><strong class=”iu jo”>Learn about market cycles</strong>.</p><ul class><li id=”25fa” class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn kq kr ks ex”><a href=”https://blog.trezor.io/what-happens-in-a-bullrun-four-different-histories-of-bitcoin-highs-3371e8073264″ class=”cj fp” rel=”noopener”>What is a bull market</a>? How do they work? How do they end?</li><li id=”e9e8″ class=”is it ds iu b ez kt iw ix fc ku iz ja jb kv jd je jf kw jh ji jj kx jl jm jn kq kr ks ex”>What is a bear market? How do they work? How do they end?</li><li id=”50bb” class=”is it ds iu b ez kt iw ix fc ku iz ja jb kv jd je jf kw jh ji jj kx jl jm jn kq kr ks ex”>Learn the psychology of a market cycle. You can use this to gauge your feelings on the market as well as the feelings of those around you. Overall market sentiment can be a valuable tool if used properly.</li><li id=”895d” class=”is it ds iu b ez kt iw ix fc ku iz ja jb kv jd je jf kw jh ji jj kx jl jm jn kq kr ks ex”>Where can you learn about all of this? Google. That’s where I started.</li></ul><p id=”8e54″ class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>Once you understand market cycles you can shift your focus to <strong class=”iu jo”>understanding market structure</strong>.</p><ul class><li id=”62ba” class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn kq kr ks ex”>Market structure is one of the most useful bits of information you can have for long-term investing. It can also be useful on lower time frames for day traders.</li><li id=”4381″ class=”is it ds iu b ez kt iw ix fc ku iz ja jb kv jd je jf kw jh ji jj kx jl jm jn kq kr ks ex”>I recommend studying Wyckoff accumulation, Wyckoff distribution and re-accumulation. The information you’ll learn from these will completely change your view on the charts.</li><li id=”7b89″ class=”is it ds iu b ez kt iw ix fc ku iz ja jb kv jd je jf kw jh ji jj kx jl jm jn kq kr ks ex”>It’s not enough to simply know what these patterns look like. I recommend reading in depth into what each stage of these schematics means, why they happen and how volume plays an important role in the structure.</li></ul><p id=”9bd5″ class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>I have made more money just from understanding market structure and cycles than any other techniques or strategies I’ve used. Once you learn to <a href=”https://blog.invity.io/dollar-cost-averaging-bitcoin/” class=”cj fp” rel=”noopener”>dollar cost average</a> in and out of these structures/cycles you’ll be feeling like a genius.</p><p id=”5cff” class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>The most important thing is to not try and buy the exact bottom or sell the exact top. You’ll waste a lot of your time trying to plan for the bottom or the top rather than just learning to recognize it <strong class=”iu jo”>after it’s already happened</strong>. Remember, we enter into these markets to make money. The only way to make money is by taking profit, and securing it on your <a href=”https://shop.trezor.io/product/trezor-model-t?utm_source=blog&amp;utm_medium=banner&amp;utm_campaign=how_to_trader_mindset” class=”cj fp” rel=”noopener”>hardware wallet</a>. <strong class=”iu jo”>Make profit taking a habit</strong>. Once it’s a habit you can become a profitable trader or investor.</p><h1 id=”06b7″ class=”jp jq ds cd jr js jt iw ju jv jw iz jx jy jz ka kb kc kd ke kf kg kh ki kj kk ex”>Successful traders never stop learning</h1><p id=”d4f1″ class=”is it ds iu b ez kl iw ix fc km iz ja jb kn jd je jf ko jh ji jj kp jl jm jn dk ex”>My last bit of advice would be to share your ideas. There’s always more to learn and the only way to learn from others is by sharing your ideas publicly and asking questions to those more experienced than yourself. I had many helpful mentors when I started out. The advice they gave me was invaluable and I would not be a full-time trader if it weren’t for them.</p><p id=”b70d” class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>Ready to start? <strong class=”iu jo”>Here’s</strong> <strong class=”iu jo”>what to do now</strong>:</p><ul class><li id=”755e” class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn kq kr ks ex”>Go make an account on a charting platform like Tradingview or Trendspider, practice charting for yourself and study the charts. Live-action charting is where everything happens. That’s the best place to learn by trial and error.</li><li id=”8a96″ class=”is it ds iu b ez kt iw ix fc ku iz ja jb kv jd je jf kw jh ji jj kx jl jm jn kq kr ks ex”>Don’t be afraid to be wrong, everyone was new once. We all started off learning with zero knowledge. Just be conservative with your capital until you feel more confident.</li><li id=”1223″ class=”is it ds iu b ez kt iw ix fc ku iz ja jb kv jd je jf kw jh ji jj kx jl jm jn kq kr ks ex”>Make sure to study your ass off and understand that you will not become a profitable trader overnight. It will take hours and hours of free time to get the hang of this. Set some goals, be honest with yourself and don’t be afraid to fail.</li></ul><p id=”d566″ class=”is it ds iu b ez iv iw ix fc iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn dk ex”>Do you have what it takes?</p></div></div></section><div class=”n p fq ky kz la” role=”separator”><span class=”lb fv gx lc ld le”></span><span class=”lb fv gx lc ld le”></span><span class=”lb fv gx lc ld”></span></div><section class=”dk dl dm dn do”><div class=”n p”><div class=”ab ac ae af ag dp ai aj”><figure class=”hu hv hw hx hy hk cw cx paragraph-image”><a href=”https://shop.trezor.io/product/trezor-model-t?utm_source=blog&amp;utm_medium=banner&amp;utm_campaign=how-to-be-a-trader-part-one”><div class=”cw cx lf”><div class=”il s id im”><div class=”lg io s”><div class=”ig ih t u v ii aj bj ij ik”></div><div class=”ftr-noscript”><img alt class=”t u v ii aj” src=”https://miro.medium.com/max/2560/0*JKBeLH8ogrpUzMlj” width=”1280″ height=”320″ srcset=”https://miro.medium.com/max/552/0*JKBeLH8ogrpUzMlj 276w, https://miro.medium.com/max/1104/0*JKBeLH8ogrpUzMlj 552w, https://miro.medium.com/max/1280/0*JKBeLH8ogrpUzMlj 640w, https://miro.medium.com/max/1400/0*JKBeLH8ogrpUzMlj 700w” sizes=”700px” role=”presentation”></div></div></div></div></a></figure><h1 id=”1278″ class=”jp jq ds cd jr js jt iw ju jv jw iz jx jy jz ka kb kc kd ke kf kg kh ki kj kk ex”>Nebraskan Gooner’s top traders to follow in 2021:</h1><figure class=”hu hv hw hx hy hk”><div class=”il s id”><div class=”lh io s”></div></div></figure></div></div></section></div><p><strong><a href=”https://blockads.fivefilters.org”></a></strong> <a href=”https://blockads.fivefilters.org/acceptable.html”>(Why?)</a></p> Tue, 23 Mar 2021 16:50:33 +0000 SatoshiLabs
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Pro-blockchain, anti-crypto? The curious case of China, Russia and India https://blog.trezor.io/pro-blockchain-anti-crypto-the-curious-case-of-china-russia-and-india-1a126d5ba404?source=rss—-4b757f6fc8b0—4
https://medium.com/p/1a126d5ba404
<section class=”cu cv cw cx aj cy cz s”></section><div><div class=”t v da db dc dd”></div><section class=”de df dg dh di”><div class=”n p”><div class=”ab ac ae af ag dj ai aj”><h2 id=”167c” class=”dk dl dm cd b ce dn do dp dq dr ds cg ch”>Crypto Regulation</h2><div class></div><div class><h2 id=”8bc8″ class=”es du dm cd b et eu ev ew ex ey ez fa fb fc fd fe ff fg fh fi cg”>By <a href=”https://twitter.com/borovviec” class=”cj fj” rel=”noopener”>Michael Borowiec</a>, contributor to <a href=”https://blog.trezor.io/” class=”cj fj” rel=”noopener”>Trezor Blog</a></h2><div class=”fk”><div class=”n fl fm fn fo”><div class=”o n”><div><a href=”https://medium.com/@satoshilabs?source=post_page—–1a126d5ba404——————————–” rel=”noopener”><img alt=”SatoshiLabs” class=”s fp fq fr” src=”https://miro.medium.com/fit/c/96/96/1*Ssz_O5SEk4sJ2NIrwl4uOw.png” width=”48″ height=”48″></a></div><div class=”fs aj s”><div class=”n”><div style=”flex:1″><span class=”cd b ft cf er”><div class=”fu n o fv”><span class=”cd b ft cf bj fw fx fy fz ga gb er”><a href=”https://medium.com/@satoshilabs?source=post_page—–1a126d5ba404——————————–” class=”cj ck at au av aw ax ay az ba gc bd cn co” rel=”noopener”>SatoshiLabs</a></span><div class=”gd s ap h”><span><a href=”https://medium.com/m/signin?actionUrl=https%3A%2F%2Fmedium.com%2F_%2Fsubscribe%2Fuser%2Fb8686215a986&amp;operation=register&amp;redirect=https%3A%2F%2Fblog.trezor.io%2Fpro-blockchain-anti-crypto-the-curious-case-of-china-russia-and-india-1a126d5ba404&amp;source=post_page-b8686215a986—-1a126d5ba404———————follow_byline———–” class=”cd b ce cf ge gf gg gh gi gj gk ba gl gm gn go gp gq gr cz gs gt” rel=”noopener”>Follow</a></span></div></div></span></div></div><span class=”cd b ft cf cg”><span class=”cd b ft cf bj fw fx fy fz ga gb cg”><div><a href=”https://blog.trezor.io/pro-blockchain-anti-crypto-the-curious-case-of-china-russia-and-india-1a126d5ba404?source=post_page—–1a126d5ba404——————————–” class=”cj ck at au av aw ax ay az ba gc bd cn co” rel=”noopener”>Mar 18</a> <!– –>·<!– –> <!– –>12<!– –> min read</div></span></span></div></div><div class=”n gu gv gw gx gy gz ha hb z”><div class=”n o”><div class=”hc s ap”></div><div class=”hc s ap”></div><div class=”hc s ap”></div><div class=”he s”><div class=”hd”><span></span></div></div><div class=”s an”></div></div></div></div></div></div></div></div><div class=”hf”><div class=”n p”><div class=”hg hh hi hj hk hl af hm ag hn ai aj”><figure class=”hp hq hr hs ht hf hu hv paragraph-image”><div role=”button” tabindex=”0″ class=”hw hx hy hz aj ia”><div class=”cw cx ho”><img alt class=”ib ic” src=”https://miro.medium.com/max/3200/0*_rzUKrZTiXFM2VcH” width=”1600″ height=”576″ role=”presentation”></div></div></figure></div></div></div><div class=”n p”><div class=”ab ac ae af ag dj ai aj”><p id=”be44″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>In this series, we discussed how the majority of economic superpowers <a href=”https://blog.trezor.io/will-crypto-laws-devastate-the-industry-or-help-it-grow-stronger-8bdf9b905c32″ class=”cj fj” rel=”noopener”>see intrinsic, long-term value in incorporating the cryptocurrency industry</a> into its market structures, as long as it plays by their rules. As with anything, in this development <a href=”https://blog.trezor.io/what-the-recent-string-of-regulations-tells-us-about-cryptocurrencies-future-c5e0131c70e1″ class=”cj fj” rel=”noopener”>there are winners and losers</a>. But the overall sentiment is that crypto is staying relatively independent, with large parts of the sector allowed to thrive, along with a rich ecosystem of tokens alongside it.</p><p id=”b081″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>At the same time, a smaller group of countries is taking a much more cautious approach to regulating cryptocurrencies. There are a number of reasons why some countries reject the technology. <a href=”https://www.loc.gov/law/help/cryptocurrency/cryptocurrency-world-survey.pdf” class=”cj fj” rel=”noopener”>Bolivia</a> has banned them since 2014 so as to protect its native currency, the Boliviano.</p><p id=”efc6″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”><a href=”https://www.loc.gov/law/help/cryptocurrency/cryptocurrency-world-survey.pdf” class=”cj fj” rel=”noopener”>Iran</a>’s central bank similarly prohibited all financial institutions from dealing with cryptos in 2018, following the decade-old logic of curbing terrorism and money laundering within its own borders. Some islamic countries, on the other hand, have had a slow start to crypto adoption due to its religious leaders, such as Egypt’s Grand Mufti, issuing a religious ban on the industry that was <a href=”https://finance.yahoo.com/news/egypt-lifts-ban-cryptocurrency-ahead-120553374.html#:~:text=More-,Egypt%20has%20lifted%20its%20ban%20on%20cryptocurrencies%20one%20year%20after,and%20other%20cases%20of%20fraud.” class=”cj fj” rel=”noopener”>lifted only in 2019</a>.</p><p id=”ef80″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Today, we will focus on three economic giants whose relationship with adoption of cryptocurrencies has been problematic, to say the least. China, Russia and India cumulatively are home to <a href=”https://www.indexmundi.com/g/r.aspx” class=”cj fj” rel=”noopener”>nearly three billion people</a>. With a joint Gross Domestic Product (GDP) of nearly <a href=”https://www.statista.com/statistics/254281/gdp-of-the-bric-countries/” class=”cj fj” rel=”noopener”>20 trillion USD</a> and a history of technological innovation, they are ripe for propelling the blockchain industry and the cryptocurrency markets to previously unforeseen heights.</p><p id=”fc95″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Instead of participating in a unified global push for regulating the crypto markets however, these countries choose to take what they like from blockchain technology and incorporate it into their internal economies. In doing so, they choose to hold out with centralized solutions for as long as they can, while the global industry flourishes. Today, we will explore the <strong class=”if iz”>friction between centralized power and blockchain technology</strong>, as well as how it affects the growth of this nascent industry inside their borders.</p><h1 id=”2405″ class=”ja jb dm cd jc jd je ih jf jg jh ik ji jj jk jl jm jn jo jp jq jr js jt ju jv er”>“C” for crypto, “C” for chaos</h1><p id=”18ad” class=”id ie dm if b et jw ih ii ew jx ik il im jy io ip iq jz is it iu ka iw ix iy de er”>Around the same time when <a href=”https://blog.trezor.io/will-crypto-laws-devastate-the-industry-or-help-it-grow-stronger-8bdf9b905c32″ class=”cj fj” rel=”noopener”>Japan was busy putting together</a> the first pieces of legislation favorable to the sector, Beijing has issued a decree banning all cryptocurrencies from official use, as well as blocking its local exchanges from being fully operational.</p><p id=”79dc” class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>While it is not technically illegal to own, purchase, or sell bitcoins in <strong class=”if iz”>China</strong>, it is strictly prohibited to circulate them as actual currency in its markets. To put in perspective the lack of formal access of Chinese netizens to cryptocurrencies, before the ban in 2017, <a href=”https://www.reuters.com/article/crypto-currency-china/chinas-furtive-bitcoin-trade-heats-up-again-worrying-regulators-idUSL3N2KY04Q” class=”cj fj” rel=”noopener”>China accounted for over 90% of global Bitcoin trading</a>.</p><p id=”fe62″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Understanding China’s unique historical context helps us see their position on the rapid crypto boom. Ever since the late 1970s, the East Asian giant has undergone a phase of rapid economic development which made it wary of a volatile, financial system. The Chinese Communist Party has since aimed to hold a close control over its domestic markets. The rise of a deregulated, decentralized crypto market which floods the economy with additional currency is seen as something undesirable for the direction China is heading</p><p id=”f191″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>China has had a long history of regulating peer to peer financial services, which explains the hardline stance against its exchanges, the historic peddlers of cryptocurrencies. Even the native Chinese Binance, the world’s largest exchange by far, <a href=”https://cointelegraph.com/news/binance-makes-first-chinese-investment-since-leaving-country-in-2017″ class=”cj fj” rel=”noopener”>had to leave its borders due to the country’s draconian regulations</a>. Others have experimented with navigating legal loopholes to remain compliant with the strict guidelines of the Communist Chinese Party.</p><blockquote class=”kb”><p id=”a393″ class=”kc kd dm dv b ke kf kg kh ki kj iy cg”>Moving quickly to control deregulated finance in its own borders, the Chinese Communist Party is disrupting the industry in its own, controlled way.</p></blockquote><p id=”7e7a” class=”id ie dm if b et kk ih ii ew kl ik il im km io ip iq kn is it iu ko iw ix iy de er”>One of the biggest examples of such navigation is the use of special middleman tokens like <a href=”https://www.google.com/search?q=usdt+china+use&amp;oq=usdt+china+use&amp;aqs=chrome..69i57j0i22i30l2.2411j0j1&amp;sourceid=chrome&amp;ie=UTF-8″ class=”cj fj” rel=”noopener”>Tether’s USDT as an intermediate between trading fiat and crypto</a>. Another example includes companies using third party platforms like Alipay or Wechat Pay to facilitate these transactions without the exchange acting as a legal facilitator.</p><p id=”e059″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Alas, the all-ruling hand of the Chinese Communist Party has stifled these legal innovations. <a href=”https://blog.trezor.io/what-the-recent-string-of-regulations-tells-us-about-cryptocurrencies-future-c5e0131c70e1″ class=”cj fj” rel=”noopener”>While the barrier of entry is high for projects in free markets</a>, the failure to stay compliant with the regulatory environment in China can have dire consequences for aspiring entrepreneurs and investors alike.</p><p id=”405a” class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Having said that, the official crackdown on cryptos clearly has done little to stop budding investors from participating in the recent boom. While Chinese authorities are trying to curb its citizens participation in global trading, outside of its physical, legal and digital boundaries, there is little they can do.</p><p id=”aa91″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Onshore investors are able to participate in the never-before-seen price surge <a href=”https://www.reuters.com/article/crypto-currency-china/chinas-furtive-bitcoin-trade-heats-up-again-worrying-regulators-idUSL3N2KY04Q” class=”cj fj” rel=”noopener”>via offshore located exchanges such as Huobi and OKEx</a>. USDT can still be bought using the Chinese yuan on the peer-to-peer markets, a process that <a href=”https://www.reuters.com/article/crypto-currency-china/chinas-furtive-bitcoin-trade-heats-up-again-worrying-regulators-idUSL3N2KY04Q” class=”cj fj” rel=”noopener”>technically doesn’t violate Chinese laws</a>. Money required to do so can be moved to an overseas account to facilitate the transaction under the guise of a medical transaction. To add to complexity, the absence of investor information on these exchanges makes it harder to pinpoint any capital flow to an individual trader.</p><p id=”d9bc” class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Considering all of this, it is of no surprise that in 2020, over <a href=”https://www.reuters.com/article/crypto-currency-china/chinas-furtive-bitcoin-trade-heats-up-again-worrying-regulators-idUSL3N2KY04Q” class=”cj fj” rel=”noopener”>$17.5 billion digital assets flowed out of Chinese exchanges</a> to foreign venues, a 50% increase from the year before. One can only imagine the 2021 reinvestment into the sector with a crypto-friendly regulatory approach from Chinese authorities.</p><p id=”9d3f” class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>The relationship between fears of economic chaos and regulating crypto can also be seen in <strong class=”if iz”>India</strong>. The South Asian country similarly banned holding of private crypto transactions in 2018, <a href=”https://techcrunch.com/2021/01/30/india-plans-to-introduce-law-to-ban-bitcoin-other-private-cryptocurrencies” class=”cj fj” rel=”noopener”>with non-compliant investors facing up to 10 year jail time</a>. The move was inspired by a number of crypto-related crimes and frauds following the months after the country’s prime minister, <a href=”https://www.bloomberg.com/news/articles/2021-01-30/india-plans-to-introduce-legislation-to-ban-cryptocurrencies” class=”cj fj” rel=”noopener”>Narenda Modi, decided to ban 80% of the nation’s currency.</a> Since then, local business leaders have taken the matter to the local Supreme Court, winning a respite in March 2020.</p><p id=”efbf” class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>But it hasn’t been smooth sailing for Indian hodlers. Bitcoin remains illegal tender in the country. It even gets bad press from some of India’s top industry leaders. Rakesh Jhunjhunwala, India’s Warren Buffett, <a href=”https://www.coindesk.com/indias-warren-buffett-rakesh-jhunjhunwala-backs-bitcoin-ban” class=”cj fj” rel=”noopener”>recently proclaimed he will “never buy Bitcoin’’</a> and that the power to issue currencies should “only be with the state.” India’s regulators also want any organisation wanting to go <a href=”https://www.coindesk.com/india-sebi-crypto-ipos” class=”cj fj” rel=”noopener”>public to divest from their cryptocurrency holdings</a>, which constitutes another blow to the institutional adoption in the South Asian country.</p><blockquote class=”kb”><p id=”f247″ class=”kc kd dm dv b ke kf kg kh ki kj iy cg”>Based on India’s approach so far, we can assume that it will prioritize plug-and-play blockchain technology, over any projects and protocols that need tokenization to thrive.</p></blockquote><p id=”69c5″ class=”id ie dm if b et kk ih ii ew kl ik il im km io ip iq kn is it iu ko iw ix iy de er”>Recently, India announced plans to <a href=”https://www.indiatoday.in/news-analysis/story/don-t-miss-the-cryptocurrency-boat-experts-say-on-india-s-proposed-regulations-1773435-2021-02-26″ class=”cj fj” rel=”noopener”>introduce a new law banning trade in cryptocurrencies</a>, which would put it out of step with other Asian economies, who have chosen to regulate the fledgling market. The draconian measure could have dire consequences for the country’s traders. Currently,<a href=”https://www.indiatoday.in/news-analysis/story/don-t-miss-the-cryptocurrency-boat-experts-say-on-india-s-proposed-regulations-1773435-2021-02-26″ class=”cj fj” rel=”noopener”> seven million Indian citizens hold cryptocurrencies with a total value of over 1 billion USD</a>. With a trading and holding culture already so deeply embedded within India’s borders, any ban would have to also include a way to provide liquidity to those affected, otherwise risking an economic crisis.</p><p id=”6954″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>It should be no surprise that <strong class=”if iz”>Russia</strong>, yet another country wanting to keep its economic machine in the hands of the ruling elite, has signed two new legislations, which similarly limit <a href=”https://www.forbes.com/sites/rogerhuang/2020/08/10/russia-backs-away-from-total-cryptocurrency-ban/?sh=19d4ce3e7520″ class=”cj fj” rel=”noopener”>cryptocurrency’s use in the Russian economy, but don’t shy away from taxing the new assets</a>.</p><p id=”24c6″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>The law itself built on an already existing regulation, which automatically <a href=”https://www.forbes.com/sites/rogerhuang/2020/08/10/russia-backs-away-from-total-cryptocurrency-ban/?sh=19d4ce3e7520″ class=”cj fj” rel=”noopener”>associated any cryptocurrency trading activity with money laundering</a>. Russian citizens can now own and trade cryptos without much hassle. They are not, however, allowed to use it as a legal tender in <a href=”https://www.forbes.com/sites/rogerhuang/2020/08/10/russia-backs-away-from-total-cryptocurrency-ban/?sh=19d4ce3e7520″ class=”cj fj” rel=”noopener”>Russia’s domestic economy</a>. There are plans to open up state-controlled cryptocurrency exchanges, which will oversee the entire process of minting digital currencies and processing sensitive investor data.</p><h1 id=”5bea” class=”ja jb dm cd jc jd je ih jf jg jh ik ji jj jk jl jm jn jo jp jq jr js jt ju jv er”>Pick-and-mix your crypto industry</h1><p id=”24a5″ class=”id ie dm if b et jw ih ii ew jx ik il im jy io ip iq jz is it iu ka iw ix iy de er”>It’s important to note that while these countries have taken a strong stance against the global, cryptocurrency sector, it does not mean that they are necessarily against blockchain technology itself. In a lot of cases, they have actively pursued, or even spearheaded some aspects of the market, or made its features work for their preexisting structures.</p><p id=”cc0d” class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Pursuing an anti-crypto trading policy has <strong class=”if iz”>not stopped China from implementing favourable crypto regulation </strong>in other areas. <a href=”https://www.cnbc.com/2019/12/16/china-looks-to-become-blockchain-world-leader-with-xi-jinping-backing.html” class=”cj fj” rel=”noopener”>Xi Jingping himself has openly made it clear that that there is a huge potential for blockchain</a>, but that the technology must serve the “real” economy of the East Asian Giant. The country has spearheaded their own versions of think tanks, innovation hubs and regulatory bodies, with the government <a href=”https://technode.com/2021/03/02/inner-mongolia-may-ban-crypto-mining-blockheads/” class=”cj fj” rel=”noopener”>more than doubling the number of tenders to procure blockchain technology</a> to 72 in 2020.</p><p id=”98f5″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Government-backed infrastructure, called the Blockchain-Service Network (BSN) allows <a href=”https://techcrunch.com/2021/02/03/bsn-china-national-blockchain/” class=”cj fj” rel=”noopener”>developers to build their blockchain programs on a pre-existing framework</a>. This government-backed provision radically decreases time and cost to develop innovative solutions, while at the same time ensures all projects staying automatically compliant with Chinese regulations.</p><p id=”4363″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Industry giants including Ethereum, EOS, Tezos and NEO <a href=”https://techcrunch.com/2021/02/03/bsn-china-national-blockchain/” class=”cj fj” rel=”noopener”>already have nodes on BSN’s public blockchain</a>. This is all while various Chinese projects like VeChain are being the green light to thrive under the Party’s protectorate and strict oversight.</p><p id=”340b” class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>The <strong class=”if iz”>Russian state is similarly keen to develop blockchain solutions</strong> under the strict protectorate of its regulatory institutions. The central authority has turned to the country’s nascent industry, keeping a close eye on a number of Russia-hosted ICOs and plans for some of its <a href=”https://www.forbes.com/sites/rogerhuang/2020/08/10/russia-backs-away-from-total-cryptocurrency-ban/” class=”cj fj” rel=”noopener”>internet giants to release their own cryptocurrency.</a></p><p id=”c592″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>This willingness is best illustrated by the publishing of the Sovereign Internet Bill in 2019. Mimicking China’s oversight of its digital landscape, Russia has moved to force all foreign service providers, including Google and Facebook, to reroute their traffic through the data infrastructure controlled by Roskomnadzor, or Russia’s internet censor.</p><p id=”fba9″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Interestingly enough, some of the earliest signs of blockchain adoption spearheaded by the <a href=”https://www.coindesk.com/russia-vote-blockchain” class=”cj fj” rel=”noopener”>Russian state have been in the area of voting and elections</a>. Last summer, Russian digital service provider Rostelecom published details of a system that was to be tested in support of two regional by-elections in September 2020. The project, executed in collaboration with the Russian blockchain project Waves, was immediately mired in controversy.</p><p id=”c101″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Most notably, weak file protection meant <a href=”https://www.coindesk.com/russia-vote-blockchain” class=”cj fj” rel=”noopener”>hackers could easily retrieve voter information</a> and sell it on the black market. Paradoxically, attempts to apply blockchain into voting systems seem to go hand in hand with controversial elections. In 2018, blockchain platform Agora had to publicly acknowledge its shortcomings in aiming <a href=”https://www.coindesk.com/blockchain-vote-election-sierra-leone-got-wrong” class=”cj fj” rel=”noopener”>to improve the transparency of elections in Sierra Leone</a>.</p><p id=”7d86″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Even the <strong class=”if iz”>Indian crypto ban might not be so total after all</strong>. In a recent interview, India’s Finance Minister Nirmala Sitharaman, implied that the South Asian country will keep “<a href=”https://coinquora.com/india-reconsiders-complete-cryptocurrency-ban/” class=”cj fj” rel=”noopener”>a window available for all types of experiments in the crypto world.</a>” The details of what experimentation will be allowed to take place are not clear. Based on India’s approach so far, we can assume that it will prioritize plug-and-play blockchain technology, over any projects and protocols that need tokenization to thrive.</p></div></div><div class=”hf”><div class=”n p”><div class=”hg hh hi hj hk hl af hm ag hn ai aj”><figure class=”hp hq hr hs ht hf hu hv paragraph-image”><div role=”button” tabindex=”0″ class=”hw hx hy hz aj ia”><div class=”cw cx kp”><img alt class=”ib ic” src=”https://miro.medium.com/max/5820/1*uY7z6_pUgpJ5zXnDNa5koQ.png” width=”2910″ height=”1508″ role=”presentation”></div></div></figure></div></div></div><div class=”n p”><div class=”ab ac ae af ag dj ai aj”><h1 id=”f1ec” class=”ja jb dm cd jc jd je ih jf jg jh ik ji jj jk jl jm jn jo jp jq jr js jt ju jv er”>Hash rates make for good stock prices</h1><p id=”be6a” class=”id ie dm if b et jw ih ii ew jx ik il im jy io ip iq jz is it iu ka iw ix iy de er”>The cryptocurrency mining industry, long scoffed at by Chinese authorities, has recently gotten a green light as well. <a href=”https://www.coindesk.com/chinese-companies-that-have-nothing-to-do-with-crypto-are-pivoting-to-mining” class=”cj fj” rel=”noopener”>With cheap electricity prices</a>, mining has proven to be a profitable industry in China, with companies like Blockstream or Canaan Creative recently receiving a rare go-ahead from the authorities to safely expand their business.</p><p id=”fc2a” class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>The lucrative mining industry is seeing a rise in a variety of established, institutional players. Shenzhen-based lottery giant 500.com has entered the playing field with a lucrative contract from the State Grid Corporation of China, which allows it to enjoy discounted electricity for its data centers. In 2019, these data centers have contributed to over 96% of its total revenue and could amount to <strong class=”if iz”>up to 6% hash rate of the entire Bitcoin network</strong>.</p><p id=”f579″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Pivots to crypto mining are becoming increasingly popular, especially for companies hit by the US-China trade war, tightening regulatory landscape on their initial bets and stagnating product offerings. The9, another Chinese giant, with exclusive rights to distribute World of Warcraft in China, has seen its shares rise by over 700% on news of crypto investments in January 2021.</p><p id=”6a6a” class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Russia is also joining the cryptocurrency mining party. In February 2021, a shipment of twenty thousand cryptocurrency mining machines worth up to $60 million was imported into the Russian city of Bratsk by an unknown entity. While keeping a close eye on individual crypto use, <a href=”https://www.buybitcoinworldwide.com/mining/china/” class=”cj fj” rel=”noopener”>Russia now totals <strong class=”if iz”>up to 7% of global crypto mining capacity</strong>, putting it after the US with 7.2% and China with a staggering 65%.</a> Here it’s important to note that about half of China’s hash rate is produced in just one place, the autonomous Xinjiang region, which makes up 35.76% of the global total.</p><h1 id=”a331″ class=”ja jb dm cd jc jd je ih jf jg jh ik ji jj jk jl jm jn jo jp jq jr js jt ju jv er”>Digital currencies and where to find them</h1><p id=”5d9d” class=”id ie dm if b et jw ih ii ew jx ik il im jy io ip iq jz is it iu ka iw ix iy de er”>Another element of the technology that remains appealing to most countries is the prospect of experimenting with releasing a native digital currency. A survey released at the beginning of 2020 by the Bank for International Settlements has found that out of 66 central banks asked, <a href=”https://www.coindesk.com/10-of-central-banks-surveyed-close-to-issuing-digital-currencies-bis” class=”cj fj” rel=”noopener”>80% are exploring the idea of a digital currency, while 10% are ‘imminently close’’ to a launch</a>.</p><p id=”cee4″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Russia, for example, is openly flirting with the idea of creating a digital token pegged to the Russian rouble. While the idea is definitely in the former camp of feedback and focus groups, the move illustrates Russia’s <a href=”https://www.coindesk.com/russias-digital-ruble-model-to-get-bank-friendly-redesign” class=”cj fj” rel=”noopener”>willingness to invite blockchain technology into its economy, but on its own terms</a>.<a href=”https://techcrunch.com/2021/01/30/india-plans-to-introduce-law-to-ban-bitcoin-other-private-cryptocurrencies” class=”cj fj” rel=”noopener”> India is toying with similar concepts,</a> while at the same time exploring the idea of a total cryptocurrency ban.</p><p id=”aee0″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>China has also been making big waves in the news with the rollout of its digital currency, the catchy Digital Currency Electronic Payment or as it’s more commonly known, DCEP. The Communist country has its own Digital Currency Research Institute, overseeing the goal of issuing the digital money.</p><blockquote class=”kb”><p id=”c331″ class=”kc kd dm dv b ke kf kg kh ki kj iy cg”>Increased usage of China’s digital currency across the globe means more data and more control for the Chinese Communist Party.</p></blockquote><p id=”4a8f” class=”id ie dm if b et kk ih ii ew kl ik il im km io ip iq kn is it iu ko iw ix iy de er”>Throughout the last few years, China’s central bank has piloted the rollout and practical implications of DCEP, <a href=”https://www.coindesk.com/beijing-shanghai-back-wider-testing-of-digital-yuan-in-2021″ class=”cj fj” rel=”noopener”>with successful trials in cities such as Shenzhen, Chengdu, Suzhou and Xiongan</a>. 2021 trials of the ‘Digital Yuan’ will see the world’s most advanced digital currency tried out in <a href=”https://www.coindesk.com/beijing-shanghai-back-wider-testing-of-digital-yuan-in-2021″ class=”cj fj” rel=”noopener”>the megalopolis of Beijings and Shanghai</a>.</p><p id=”aa64″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>You can read more about the nature and implications of digital currencies, as well as how they differ from crypto in <a href=”https://blog.trezor.io/central-bank-digital-currencies-cbdc-are-the-polar-opposite-of-bitcoin-2f8e87e5327d” class=”cj fj” rel=”noopener”>our blog here</a>. Instead, today we will look at how the development of China’s own digital native currency again underlines the willingness of these states to experiment with technology inspired by blockchain to serve their own political objectives. And to look for proof of this, look no further than China’s three-decade long Africa policy.</p><p id=”5c14″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Through a series of government contracts, corporate investments and societal initiatives, China has amassed incredible influence over Africa’s telecommunications infrastructure. In 2021, <a href=”https://www.coindesk.com/china-leads-africas-digital-currency-race” class=”cj fj” rel=”noopener”>50% of mobile handsets and 70% of mobile networks on the continent have been built by Chinese companies</a>. Coupled with African continent’s lack of a unified payment service that inhibits it from interacting with external markets, this makes for ample room for China to offer its own payment solutions across the continent.</p><p id=”db93″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”><a href=”https://www.coindesk.com/china-leads-africas-digital-currency-race” class=”cj fj” rel=”noopener”>Huawei’s Mate 40 model, which recently launched in South Africa, is the first smartphone allowing for the storing and using of DCEP</a>. In its continued expansion across African countries with its consumer technology, telecommunications solution and political influence, China is facing little opposition. To add fuel to the fire, extended political influence and debt obligations means that <a href=”https://www.coindesk.com/china-leads-africas-digital-currency-race” class=”cj fj” rel=”noopener”>up to 14 African countries are already openly considering adopting the yuan as its reserve currency</a>, which would fast track the spread of the DCEP even further. Increased usage of China’s digital currency across the globe means more data and more control for the Chinese Communist Party.</p><h1 id=”8fca” class=”ja jb dm cd jc jd je ih jf jg jh ik ji jj jk jl jm jn jo jp jq jr js jt ju jv er”>The fight to control decentralization</h1><p id=”ca28″ class=”id ie dm if b et jw ih ii ew jx ik il im jy io ip iq jz is it iu ka iw ix iy de er”>At the time of writing this blog post, one thing is clear — <a href=”https://blog.trezor.io/will-crypto-laws-devastate-the-industry-or-help-it-grow-stronger-8bdf9b905c32″ class=”cj fj” rel=”noopener”>cryptocurrencies and blockchain technology are here to stay</a>. Even if you ignore the recent heights achieved by the overall market cap, it’s clear that <strong class=”if iz”>the industry has fully embedded itself into the global economy</strong>, with the majority of its economic players eager to let it develop compliant, yet largely undisturbed.</p><p id=”9f6c” class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>On the other hand, today’s blog post showed us how some countries are much more hesitant in their approach to regulating crypto. Russia and India opt for cracking down on individual cryptocurrency holders, while losing first mover advantage on developing their domesting blockchain scenes. At the same time, China’s cautious approach seems much more pragmatic and forward-thinking.</p><p id=”5dd6″ class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Moving quickly to control deregulated finance in its own borders, the Chinese Communist Party is disrupting the industry in its own, controlled way. From absolutely dominating global Bitcoin mining and technological innovation, to spearheading its digital currency project as a Trojan Horse of extended political influence in the continents it aims to control, China’s use of the opportunity that blockchain presents is both fascinating and frightening at the same time.</p><p id=”295c” class=”id ie dm if b et ig ih ii ew ij ik il im in io ip iq ir is it iu iv iw ix iy de er”>Nevertheless, the decentralized nature of the technology coupled with the interconnected, global nature of the industry means even the most draconian of regulations cannot fully stop their subjects from dipping their feet in crypto. The hope is that pragmatism will win over any authoritarian backlash in the long-term. In the case of these three countries however, I wouldn’t hold your breath.</p></div></div></section><div class=”n p fk kq kr ks” role=”separator”><span class=”kt fp gs ku kv kw”></span><span class=”kt fp gs ku kv kw”></span><span class=”kt fp gs ku kv”></span></div><section class=”de df dg dh di”><div class=”n p”><div class=”ab ac ae af ag dj ai aj”><figure class=”hp hq hr hs ht hf cw cx paragraph-image”><a href=”https://shop.trezor.io/product/trezor-model-t?utm_source=blog&amp;utm_medium=banner&amp;utm_campaign=campaign=crypto_laws_regulation_part_three”><div class=”cw cx kx”><img alt class=”ib ic” src=”https://miro.medium.com/max/2560/1*LWx9bte1k7UT_HbOKt32RQ.jpeg” width=”1280″ height=”320″ role=”presentation”></div></a></figure></div></div></section></div><p><strong><a href=”https://blockads.fivefilters.org”></a></strong> <a href=”https://blockads.fivefilters.org/acceptable.html”>(Why?)</a></p> Thu, 18 Mar 2021 15:20:34 +0000 SatoshiLabs
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