Best Low-Fee Stablecoins Worth Considering
Any trade you make on a crypto exchange has a basic trading fee. In most instances, the trading fee follows the maker/taker system, incentivizing stakers that provide liquidity by charging lower transaction fees. Nonetheless, bids submitted to stablecoin markets, two fiat currencies, or wrapped tokens like WETH/ETH are charged a flat fee irrespective of whether they are maker or taker orders. To view the comprehensive stablecoin fee structure, visit your exchange’s fee schedule page. You can see the fees you will be charged by checking the currency pair your bid falls under. Popular Low-Cost Stablecoins According to a recent stablecoin study conducted by the Department of Economics at Rutgers University, transaction fees vary significantly among the sampled stablecoins—Tether (USDT), USD Coin (USDC), and Dai Stablecoin (DAI). Again, because the transaction costs affect block creation time, the cost and completion time are difficult to predict. The study shows that: The average cross-section fee of USDT is $3.44, with an average percentage fee of 0.20%. The cross transaction fees for USDC are higher than USDT. Its average fee is $13.03, with an average fee of 0.84%. DAI transaction costs are quite similar to those of USDC, though the medium cost for USDC is less by nearly $3. Let’s have a closer look at each of these stablecoins: USDT USDT is the first and biggest stablecoin by market cap. USDT was developed by the BitFinex exchange in 2014 as RealCoin before rebranding to Tether in November of the same year. The pros of USDT include high market capitalization, stability, and fast transactions. Its cons include centralization and lack of transparency regarding its fiat reserves. USDC Circle and Coinbase jointly developed the USDC stablecoin in 2018. It’s mainly backed by the US dollar and licensed by reserved assets. USDC’s pros include being fully backed by US-regulated fiat reserves, transparency in its operations, and minimal price fluctuation. Its main drawback is having a lower market cap than USDT. DAI This is a crypto-backed ERC-20 token that is overcollateralized via Maker vaults. Unlike the stablecoins above, DAI embraces a decentralization approach through smart contracts and a governance token to control price stability. DAI offers collateralized loans, uses smart contracts to lock tokens in contracts, and allows regular independent auditing of its reserves. Conversely, DAI seems a bit complex for crypto newbies and exposes users to smart contract risks, especially hacks.
Asked a month ago
How to Get an Initial Coin Offering (ICO) in Simple Steps
An Initial Coin Offering (ICO) is similar to an Initial Public Offering (IPO) where a new coin is introduced to the crypto industry. A crypto project can get an ICO to raise funds. Interested individuals can join the ICO by purchasing the project’s token offering. The token’s utility is closely tied to the product or service the project is providing. Here are five simple steps on how to get an Initial Coin Offering. Step 1: Determine Your Technological Needs Assess how blockchain technology will integrate with your daily business activities and how you intend to use it to improve your products or services. There are legal implications that will affect your technological choice and your platform offering. Therefore, how your business accepts crypto, stores it, and educates customers and investors are essential to the compliance step. It should be based on a legal framework applicable to your ICO. Step 2: Choose a Jurisdiction for Your ICO Since U.S. securities laws apply to ICOs in all the states, you can launch your token offering outside the United States. Some crypto-friendly countries have favorable laws, like a broad pool of authorized investors and fewer financial disclosures. Additional benefits include better tax treatment and lenient penalties for non-compliance. You can consider investing in countries such as Malta, Gibraltar, Singapore, and Switzerland. Step 3: Write a Detailed and Clear White Paper Your white paper presents information on how your project works. As such, a good white paper should raise the confidence and trust of potential investors. This document should contain legal statements about the securities laws and other regulations applicable to your ICO. Previously, the Securities and Exchange Commission (SEC) profoundly mentioned a crypto project’s white paper when it wanted to shut it down. Step 4: Select the Best Launching Platform You need to choose the platform where you will be conducting your ICO. Previously, most projects chose to launch their ICO tokens on the Ethereum blockchain. Ethereum is well equipped with ICO development tools and smart contract functionalities to launch ERC-20 tokens smoothly. However, Ethereum’s high gas fees and scalability issues have created multiple Ethereum alternatives. Platforms like BNB Smart Chain (BSC), Solana, Polygon, Avalanche, etc., have merged as ideal ICO launch pads because of their low-cost transaction fees and high scalability. Step 5: Marketing Lastly, develop a well-defined marketing strategy to help you reach out to potential partners and investors. This can include developing a website any interested parties can be referred to who are looking for information. Supplement this with social media marketing by posting engaging content that leads back to your website and utilizing paid advertisements to reach your target audience. Also, consider providing limited free coins to potential users as well as a space where feedback can be discussed.
Asked a month ago
Types of Cold Crypto Wallets
A cold wallet is a physical vault that keeps your digital assets offline, as opposed to a crypto hot wallet which is an online vault. While storing your assets offline minimizes online attacks significantly, most cold wallets lack backups—if you lose your private keys, you may lose access to your assets completely. Also, ensure that you purchase this type of crypto wallet directly from the manufacturer instead of dealers since it might be compromised and vulnerable to attacks. There are two types of cold wallets: Paper Wallets As the name implies, a paper wallet is a cold wallet that requires users to write down or print their private keys on a piece of paper, including QR codes for easier access. This makes it hard to hack a paper wallet as no third-party has access to your private keys. However, you can easily lose or misplace the paper containing your private keys. Paper wallets also consume more time when making transactions and require more technical knowledge to operate. A paper wallet is integrated into the software to facilitate crypto transfers from blockchain to the public key printed on the paper wallet. Therefore, you must have some assets in a software wallet before transferring them to the public address shown on the paper wallet. Popular paper wallets include MyEtherWallet, Wallet Generator, and Bitcoin Paper Wallet. Hardware Wallets If you prefer a modern solution, hardware wallets guarantee secure private key storage in multiple formats. These wallets often resemble USB devices and are always offline unless plugged into a gadget. As such, hardware wallets are one of the most secure types of cold wallets. You approve transactions using private keys offline and only connect to the internet to upload transactions into a blockchain. The device requests transaction information and verifies it itself—no third party is involved. Therefore, hardware wallets are ideal for users with a good amount of crypto holdings and long-term holders. Hardware wallets can just be expensive to acquire—prices range from $30 to $300. Popular hardware wallets include Ledger Nano S, Ledger Nano X, and Trezor Model One.
Asked a month ago
The Different Kinds of Crypto Hot Wallets
Asked a month ago
Crypto Hot Wallets Explained
A crypto hot wallet is an online vault that connects to various blockchains to allow users to manage their digital assets. The different types of hot wallets are popular because you can get them for free or at lower prices, they're easy to set up, and assets are quickly accessible, making them convenient for active crypto users, like day traders. You can install hot wallet software on your computer or smartphone, or access it through a web browser without downloading. They guarantee some level of security but be vigilant against online attacks. How Do Hot Wallets Work? To receive crypto, you must have a wallet to facilitate blockchain transactions. However, all crypto wallets don’t physically store digital assets—they simply offer the tools necessary to manage, transfer, and receive crypto through blockchain transactions. Therefore, they act as the interface for accessing your digital assets. To acquire crypto, you receive private keys that give you access rights. They let you manage your account, view balances, execute transactions, etc. As such, these keys act as your banking pin. On the other hand, you need a public key to receive crypto without revealing your identity. A public key resembles your bank account number. Both public and private keys are kept in wallets. The Security of Hot Wallets One of the most significant risks of crypto hot wallets is the security breaches of private keys, which are kept online and in wallet browsers. Your online habits greatly affect the safety of your wallet. A hot wallet server, where user verification takes place, forms a single-point-of-failure, increasing the chances of seizing your personal information and online spoofing. Hackers who gain access to your login details may steal your crypto. Therefore, it’s advisable to hold only a small number of assets in a hot wallet and the rest in a cold wallet. Crypto exchanges are highly compatible with most hot wallets and they have extra levels of security in place, like Two-Factor Authentication (2FA) and Biometric Identification, to protect their users’ private keys from unauthorized individuals. Therefore, ensure you leverage these extra security measures to protect your hot wallet.
Asked a month ago
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