How Not to Lose Everything During the Bull Run

How Not to Lose Everything During the Bull Run

With sentiment suggesting Bitcoin (BTC) and the crypto markets are about to go on a bull run, seasoned old timers are warning about the lessons learned from previous rallies. With Bitcoin correcting 5% in the past day, the Crypto Fear and Greed Index is back to 75. A measure of sentiment that looks at the volatility, market volume and social media activity of digital currencies, a reading of 75 equates to “greed,” down slightly from 84 — or “extreme greed” — that was recorded on Aug. 10. But both readings suggest expectations are sky high of boom times ahead.In a Twitter thread on Aug. 11, MyCryptoWallet and MyEtherWallet co-founder Taylor Monahan laid out some good old fashioned advice learned during the 2017 bull run. She pointed out the irrational exuberance of bull markets invariably attracts bad actors preying on the vulnerable.Like moths to a flame“They will make a lot of money and people will lose because the exuberance and FOMO and greed and hype are the most powerful things on earth,” she wrote. Monahan believes the time for accumulation has now passed, and pushed for users to put 90% to 95% of their crypto assets into cold storage. She suggests that you don’t go chasing shiny new coins: “Pick a few long-term legit coins that you like. Be invested in them. Do research. Do not follow the shills […] You will win if you take profits consistently, not if you try to call top.”Monahan also stressed restraint and pointed out that people who “take on huge debt to get crypto” will not win, but will “lose their house, their kids’ savings. Do not be those losers.”Like many experts, Monahan believes investors should risk just 5% of their net worth, and once it’s been lost, they shouldn’t try to recoup those losses.“Have fun with it but once it’s gone, it’s gone. Don’t double down. Don’t take from your savings account or your cold storage.” Easy to say, hard to doCrypto researcher Chris Burniske said in an Aug. 7 tweet it was “hard to be adequately prepared” for a bull run. He expects that enthusiasm from “crypto diehards” will be 10 times what it was in 2017, implying there may be reckless buying and selling of assets in the face of wild predictions.“Speculation cycles have accompanied promising…

Daily Profitability for Ethereum Miners Hits Over 2-Year High

Daily Profitability for Ethereum Miners Hits Over 2-Year High

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Token Sales Are Back in 2020

Token Sales Are Back in 2020

As the price of bitcoin rises, token sales have become trendy once more. “Ava, Dot,” tweeted ZenGo wallet CEO Ouriel Ohayon, “2017 is back. For better or worse.” Ava Labs, the startup founded by Cornell professor Emin Gün Sirer, raised roughly $42 million in a public token sale for its Avalanche blockchain in late July. Polkadot, the project spearheaded by Ethereum co-founder Gavin Wood, raised another $43 million in a private sale days later. And in the weeks since, the momentum has only seemed to grow, as congestion on Ethereum has mounted. By Tuesday, Aug. 11, the token sale for another base-layer competitor, NEAR, overwhelmed its host platform, CoinList, forcing a delay till Wednesday. “We have seen an unprecedented amount of traffic hit CoinList servers, resulting in a site-wide outage,” according to a CoinList email obtained by CoinDesk. “We apologize for the inconvenience. The NEAR token sale has been postponed 24 hours from its original start time.” Wednesday’s attempt also caused multiple “errors.”  Yet, the NEAR sale – which wrapped Wednesday afternoon after $30 million was committed from 1,500 participants – still highlights the general pattern for token sales in 2020. First, the company raises venture capital and conducts a private sale, then the token-funded startup sells to the public through a platform that manages know-your-customer information and compliance.  Before the swamped CoinList offering, the NEAR protocol launched in April following a $21.6 million private token sale led by venture capital firm Andreessen Horowitz (a16z). This week’s sale was just one of many trendy-yet-compliant token sales the CoinList platform has conducted in 2020, after cLabs raised $10 million in 12 hours back in May. “The numbers here are remarkable and are a testament to both the product and the community that the NEAR project has created,” CoinList president Andy Bromberg told CoinDesk in an email. Read more: NEAR Protocol Launches Following $21M Token Sale Led by Andreessen Horowitz By July 2020, token projects were once again raising money across the board. Generally speaking, contemporary token startups like Ava Labs, and even competing Layer 1 projects like Chia, aim to conquer Ethereum’s market share by scaling faster and with a more decentralized network. One of the primary ways they seek to outperform the second-most-popular blockchain network is…

Australian Woman Jailed Two Years for Stealing $300,000 Worth of XRP

Australian Woman Jailed Two Years for Stealing $300,000 Worth of XRP

An Australian hacker who stole 100,000 units of the XRP cryptocurrency has been sentenced to a maximum of two years and three months in jail, local media reported.Kathryn Nguyen hacked the crypto account of a 56-year old man in January 2018. Working with an accomplice, the 25-year-old Sydney woman proceeded to change the two-factor authentication code to her own mobile phone number.According to Information Age, a local publication, this allowed Nguyen to transfer the victim’s XRP holdings – worth around $300,000 at the time – onto a Chinese exchange where she converted the funds to bitcoin (BTC) and later moved the coins into several wallets.Nguyen was eventually arrested sometime in 2018, with the Australian police seizing her computer, mobile phones and money. She was officially charged and pleaded guilty in August 2019. Only $9,000 was recovered by Chinese authorities.At the time of the hack, each XRP token traded for $2.84. Today, the stolen assets are worth just $30,000 following XRP’s crash to $0.30. Nguyen is the first person to be charged and jailed for cryptocurrency theft in Australia, the report said.In passing sentence, Judge Chris Craigie said the crime was “out of character” for Nguyen and that her “moral judgment was distorted” at the time.“A common thread was the offender’s willingness to help others,” Craigie stated. “This takes on a different meaning in her willingly participating and assisting in a criminal enterprise,” he added.Police investigated Nguyen for about a year following a report by the victim that he had been locked out of his account. However, “the reporting rate for cyber-related crimes (in Australia) is very low,” police said.According to Ciphertrace, loss from cryptocurrency theft, hacks, and fraud amounted to more than $1.4 billion between Jan. to May 2020 alone. The crypto intelligence firm expects the number to rise to $4.5 billion by year-end.What do you think about Kathryn Nguyen’s crypto theft and eventually sentencing? Let us know in the comments section below.Image Credits: Shutterstock, Pixabay, Wiki CommonsDisclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor…

Bitcoin Users Leery of Tor: 23% of the Network’s Exit Capacity Compromised

Bitcoin Users Leery of Tor: 23% of the Network’s Exit Capacity Compromised

Hackers are stealing bitcoin through the large-scale use of malicious relays on the Tor network according to a newly published research report on the subject. The researcher dubbed “nusenu” said he warned people about the growing problem in December 2019 but instead of improving Tor exit relay activity “things have become even worse,” he stressed.Malicious entities have made visitors of the anonymous communications protocol the Tor network vulnerable to attacks. Tor is a browser and open-source software that directs a person’s web traffic in an obfuscated fashion in order to circumvent traffic analysis and network surveillance.A great number of bitcoiners and cryptocurrency advocates leverage the Tor network to surf the web with anonymity but also to leverage darknet markets and coin mixers. Even Satoshi Nakamoto recommended the use of Tor while sending transactions for added privacy.On February 2, 2010, Satoshi Nakamoto said:You could use Tor if you don’t want anyone to know you’re even using Bitcoin.The research analysis from the investigator “nusenu” says “23% of the Tor network’s exit capacity has been attacking Tor users.” Of course, the hackers are focused on making money and they have utilized bitcoin address rewriting attacks.“What ISPs did the attacker use? Mostly OVH and FranTech Solutions. Graph by nusenu (raw data source: https://metrics.torproject.org/onionoo.html)”Essentially, the person sending the coin will unknowingly send the crypto asset to a different address controlled by the hackers rather than sending it to the intended destination. Nusenu detailed that bitcoin address rewriting attacks have been happening for a long time now but the scale of the operation has swelled.“It appears that they are primarily after cryptocurrency-related websites—namely multiple bitcoin mixer services. They replaced bitcoin addresses in HTTP traffic to redirect transactions to their wallets instead of the user-provided bitcoin address,” the researcher said in the blog post published on August 9.The news has shaken the crypto community, as discussions concerning the subject are littered all over social media and forums. One Redditor attributed the problems to the recent Mozilla layoff as the company let go 250 people. “And Mozilla just laid off their security vulnerability staff. Speculated to impact Tor Browser security into the future,” the Redditor said. Nusenu did discuss the certain layoffs in his blog post that were attributed to the recent Covid-19…

Defi Project Yam Finance Sees Over $500M Locked in 24 Hours, Devs Reveal Contract Bug

Defi Project Yam Finance Sees Over $500M Locked in 24 Hours, Devs Reveal Contract Bug

A new yield farming project is all the rage this week, as the Yam Finance project saw over $460 million dollars locked into the platform in 17 hours on Tuesday. On social media and crypto-focused forums, people have been very skeptical of the Yam Finance project as the code has not been audited. On Wednesday afternoon Yam Finance developers revealed a bug in the smart contract and after the announcement, the project’s token tumbled in value. At the time of publication, many digital currency advocates are talking about a new decentralized finance (defi) project called Yam Finance. The protocol combines a number of defi applications like an elastic supply inspired by Ampleforth, fair distribution similar to Yearn Finance, and onchain governance that’s comparable to Compound Finance.Yam is an “experimental protocol mashing up some of the most exciting innovations in programmable money and governance,” explains the project’s blog post published on Tuesday.“The future will be entirely controlled by the community of YAM holders. Again, YAM holds zero inherent value; any value which might accrue would be an entirely emergent property of the community that takes control,” explains the Yam team. “This community of YAM holders will determine and update the functionality of the Yam protocol, including oracle usage, rebase functionality, inflation, incentive design, the Yam treasury, and more.”The Yam Finance project TVL at 12:30 p.m. ET or 19 hours after the launch.So far, the Yam Finance project has seen a lot of demand, and swarms of investors have rushed toward the project. In the first six hours the total-value-locked (TVL) into the Yam Finance system was around $170 million.17 hours later, the analytics website yam.zippo.io had shown Yam Finance had over $460 million TVL. The web portal says the pools “only harvested 106,207 YAM out of the 2,000,000 YAM allocated for Wave 1.” After the project saw all that money flow into it, the project was the talk of the town on crypto Twitter.Bitmex founder Arthur Hayes seemed excited when he tweeted: “I’m a farmer now. Long live the defi bull market.” Other crypto observers have not been impressed by the Yam Finance project, as many skeptics have complained that the codebase was not audited.Yam Finance saw $500 million in total value locked on Wednesday afternoon,…

Bitcoin and Gold Correlation Reaches Record High 70%

Bitcoin and Gold Correlation Reaches Record High 70%

The prices of bitcoin and gold have reached a monthly average correlation of 70%, an all-time-high, according to data analytics firm Skew.The previous peak of just under 60% was reached earlier on in the second quarter of 2020. Skew said the rising correlation supports the idea that bitcoin (BTC) is a store of value, particularly at a time of economic turmoil.“Bitcoin/Gold 1 month correlation reaching new all-time highs, giving momentum to the store-of-value narrative for BTC in these ‘money printer go brrr’ times,” the London-based company said, in a tweet.Both bitcoin and gold have risen sharply throughout 2020, driven by relentless fiat money printing by governments and central banks, keen to keep their economies afloat in the wake of the coronavirus pandemic.BTC hit a yearly high of $12,000 just as gold soared to a record high of $2,000 per ounce. However, both assets dropped significantly on Tuesday after Russia announced it had approved a vaccine for the deadly coronavirus.Bitcoin fell more than 3.9% to as low as $11,200 while gold tanked 4.7% to $1,932, its biggest one-day crash in seven years – a dual decline which would indicate the correlation.As the markets sank, Rich Dad, Poor Dad author Robert Kiyosaki observed that the decline in prices may be a time for “speculators” to sell and for “investors” to buy hard assets.“Real problem is massive debt and weak economy. Fed must print. I am an investor. Great time to buy more gold, silver and bitcoin,” he told his 1.4 million followers on Twitter.The damage to world economies caused by Covid-19 is prompting governments to dole trillions of dollars in economic stimulus – and, therefore, causing safe haven assets to appreciate in value, as the dominant US dollar declines. The dollar is down around 3% year-to-date.In an earlier report, Bloomberg forecast that bitcoin will mature into a gold-like store of value in 2020. It said with its correlation to gold jumping to all-time highs, BTC is poised to transition from a risk-on speculative asset to the crypto market’s version of the metal.As digital gold, BTC appeals to the cashless internet economy largely on account of its characteristics that include round-the-clock price transparency, and the lack of limits, interruptions or third-party oversight, noted Bloomberg.What do you think about…

Borrow cash using Bitcoin on Coinbase

Borrow cash using Bitcoin on Coinbase

By Thorsten Jaeckel, Product ManagerCoinbase was created as a reliable, trusted, and safe bridge for people to buy and sell cryptocurrency, and we remain committed to providing the best crypto investing experience for our customers. We now offer easy investing tools for dollar cost averaging, market stats for tradable assets, and support 24 assets for trading. New assets we’ve added include stablecoins USDC and Dai, which can be used by customers to earn rewards when held on Coinbase.With today’s announcement, we want to give our customers even more control over their crypto investments, while offering secure access to cash at the same time. US customers in eligible states* are now invited to join the waitlist for the option to borrow up to 30% of their Bitcoin holdings.We hear from customers that they need cash for expenses like home renovations or car repairs, but they do not want to prematurely sell their crypto, or take out high-interest loans that could come with 20%+ APR. With portfolio-backed loans on Coinbase, customers can borrow cash quickly from their Coinbase accounts. No need to fill out a long application or go through a credit check. Customers can simply sign up with a few taps and get the cash in their accounts within 2–3 days.Eligible customers can join the waitlist today, and Coinbase will offer access to customers starting this fall.Learn more about eligibility, borrowing cash on Coinbase, and how it works here.*Customers in the following states can join the waitlist today: Alaska, Arkansas, Connecticut, Florida, Georgia, Illinois, Massachusetts, New Hampshire, New Jersey, North Carolina, Oregon, Texas, Virginia, Nebraska, Utah, Wisconsin, and Wyoming.

Numeraire (NMR) is launching on Coinbase Pro

Numeraire (NMR) is launching on Coinbase Pro

On Monday, August 17, transfer NMR into your Coinbase Pro account ahead of trading. Support for NMR will be available in all Coinbase’s supported jurisdictions, with the exception of New York State. Per previous launches, transfers will open during business hours, Pacific time.One of the most common requests we receive from customers is to be able to trade more assets on our platform. Per the terms of our listing process, we anticipate supporting more assets that meet our standards over time. Most recently we have added Band (BAND), Compound (COMP), Maker (MKR) and OmiseGo (OMG), along with supporting additional European and UK order books. Coinbase continues to explore support for new digital assets.On Monday, August 17, we will begin accepting inbound transfers of NMR to Coinbase Pro. Trading will begin on or after 9AM Pacific Time (PT) the following day, if liquidity conditions are met.Once sufficient supply of NMR is established on the platform, trading on our NMR-USD, NMR-BTC, NMR-EUR and NMR-GBP order books will launch in four phases, transfer-only, post-only, limit-only and full trading. If at any point one of the new order books does not meet our assessment for a healthy and orderly market, we may keep the book in one state for a longer period of time or suspend trading as per our Trading Rules.We will publish tweets from our Coinbase Pro Twitter account as each order book moves through the phases.Numeraire (NMR) is a cryptocurrency that powers Numerai, a San Francisco-based hedge fund that crowdsources artificial intelligence to make investments in major stock markets around the world. Numeraire (NMR) holders can stake their NMR tokens every week on specific predictions. Successful predictions are rewarded with more NMR.Please note that NMR is not yet available on Coinbase.com or via our Consumer mobile apps. We will make a separate announcement if and when this support is added.You can sign up for a Coinbase Pro account here to start trading. For more information on trading NMR on Coinbase Pro, visit our support page.###This website contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of Coinbase, Inc., and its affiliates (“Coinbase”), and Coinbase is not responsible for the content of any Third-Party…