Discover the hidden potential of alternative digital assets beyond Bitcoin. Dive deep into the evolution, functionality, and importance of Altcoins in our modern financial ecosystem.

What Are Altcoins? Exploring Alternative Cryptocurrencies

Altcoins encompass a vast collection of digital currencies that have emerged alongside Bitcoin, the pioneering cryptocurrency. While altcoins share the foundation of blockchain technology, they are not merely alternatives to Bitcoin. Instead, they represent a dynamic ecosystem of cryptocurrencies, each with its own distinct characteristics and objectives. Unlike Bitcoin, which operates on its own blockchain, some of the best altcoins leverage various blockchain technologies and protocols to offer unique features and functionalities. 

The origin of altcoins can be traced back to the desire for enhanced scalability, improved privacy, and specialized use cases beyond what Bitcoin could offer. Bitcoin's success paved the way for developers and entrepreneurs to experiment with new blockchain-based solutions, leading to the birth of altcoins. Since then, altcoins have evolved into a thriving ecosystem, with thousands of different cryptocurrencies catering to diverse needs, industries, and preferences.

Altcoins were developed to address certain limitations of Bitcoin and to explore new possibilities in the world of decentralized finance. Here are some key reasons why altcoins emerged:

Enhanced Functionality: Some of the best altcoins often introduce innovative features and technologies going beyond Bitcoin's capabilities. These features may include faster transaction speeds, improved privacy measures, advanced smart contract functionalities, or compatibility with specific industries.

Specialized Use Cases: Many altcoins are designed to serve niche industries or specific use cases. For instance, some examples of altcoins focus on decentralized file storage, gaming, supply chain management, or identity verification. By catering to these specialized areas, altcoins aim to provide tailored solutions for various sectors.

Competition and Innovation: Altcoins foster healthy competition and drive innovation within the cryptocurrency space. Developers and teams constantly seek to create unique altcoins offering novel features, improved performance, or alternative consensus mechanisms. This competition drives advancements in blockchain technology as a whole.

Investment Opportunities: Altcoins provide investors with an opportunity to diversify their cryptocurrency portfolios. As the crypto market expands, altcoins offer a range of investment options beyond Bitcoin. Investors can potentially benefit from the growth and adoption of specific altcoins that align with their investment strategies.

The altcoin market is characterized by its vast scale and extraordinary variety. With thousands of altcoins in existence, each one represents a distinctive approach to blockchain technology and serves different purposes. Some popular examples of altcoins include Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Cardano (ADA), Polkadot (DOT), and the Coinmetro Token (XCM), among many others.

Altcoins can be categorized into different groups based on their underlying technology, consensus mechanism, or purpose. These categories include smart contract platforms, privacy-focused coins, stablecoins, utility tokens, and more. Each category has its own set of projects, each with its own vision and objectives.

As blockchain technology advanced with decentralized finance (DeFi) and Web3 gaining momentum, altcoins emerged with specialized features and functionalities designed to cater to specific needs. In the realm of altcoins, developers harness technologies such as smart contracts, interoperability protocols, and scalability solutions, paving the way for the creation of digital assets offering seamless decentralized applications (dApps), improved transaction speeds, enhanced privacy measures, and robust governance mechanisms.

DeFi projects introduced novel concepts such as decentralized lending, yield farming, decentralized exchanges (DEXs), and liquidity pools. Altcoins specifically developed for the DeFi sector Maker (DAI), UniSwap (UNI), Aave (AAVE), aimed to provide the infrastructure and tools necessary to unlock the full potential of decentralized finance and provide users with alternative financial services and operations that traditional financial institutions could not.

Within this vibrant ecosystem, there is a list of altcoins continuing to evolve and diversify. Some altcoins focus on providing cross-chain interoperability, such as Polkadot, enabling seamless communication and asset transfers between different blockchain networks. Others aim to enhance privacy - Verge (XVG), by implementing advanced cryptographic techniques or zero-knowledge proofs.

Moreover, altcoins designed as utility tokens serve as the backbone of decentralized applications, enabling users to access and utilize specific features within these platforms. Utility tokens such as Polygon (MATIC), Chainlink (LINK), often play an integral role in incentivizing participation and driving ecosystem growth.

As new technologies continue to emerge and DeFi projects reshape the financial landscape, the list of altcoins is poised to expand further, providing even more opportunities for users to invest, trade, borrow and lend money effectively.

Altcoins operate using blockchain technology as their backbone, similar to Bitcoin. However, their underlying technology extends beyond traditional blockchains, incorporating innovative solutions to address specific needs and challenges. These solutions include smart contracts, interoperability protocols, consensus mechanisms, and scalability enhancements, among others. Altcoins harness these technologies to offer unique features, functionalities, and improvements over traditional financial systems.

Underlying Technology: Blockchain and Beyond

Mining altcoins plays a vital role in maintaining the integrity and security of their respective blockchain networks. Miners contribute their computational power to solve complex mathematical problems, validating transactions and adding new blocks to the blockchain. This process ensures the immutability and decentralization of altcoins, preventing double-spending and providing network security. Miners are rewarded with newly minted altcoins or transaction fees, incentivizing their participation and contributing to the overall health of the network.

However, it's important to note that not all altcoins can be mined. While mining is a common process for many cryptocurrencies, there are examples of altcoins that utilize different mechanisms to distribute and validate their digital assets. Some altcoins are pre-mined, meaning that their entire supply is generated and distributed before the launch of the blockchain network. Others may use alternative consensus mechanisms like Proof-of-Stake (PoS) or Delegated Proof-of-Stake (DPoS), where validators are selected based on the amount of tokens they hold or their reputation within the network.

Altcoins transactions generally rely on a decentralized network of nodes to execute and validate transfers of digital assets. When a user initiates a transaction, it is broadcasted to the network, where miners or validators confirm its validity. Through cryptographic algorithms and consensus mechanisms specific to each altcoin, transactions are verified, recorded, and added to the blockchain. This process ensures transparency, security, and efficiency, enabling users to safely and reliably transact with altcoins.

However, not all altcoins are decentralized. Projects such as Ripple, operate on a different model compared to many other cryptocurrencies, utilizing a consensus protocol called the Ripple Protocol Consensus Algorithm (RPCA), which involves a network of trusted validators rather than a fully decentralized network of miners. This system allows for faster transaction confirmation times and scalability but deviates from the principles of decentralization underpinning many other altcoins.

The level of centralization or decentralization can vary across different altcoin projects. Some altcoins strive for a high degree of decentralization, aiming to empower individuals and create trustless networks. Others, like Ripple, adopt alternative approaches that prioritize scalability, efficiency, or specific use cases.

Altcoin Transactions: How They are Executed and Validated

There is a long list of altcoins encompassing a wide range of alternative cryptocurrencies beyond Bitcoin, from utility tokens and stablecoins, to privacy-focused coins and platform-specific tokens.

While Bitcoin is the pioneering cryptocurrency, altcoins exhibit notable differences setting them apart. One key difference lies in their origin and development. Bitcoin was the first decentralized cryptocurrency, introduced in 2009 by an anonymous individual or group known as Satoshi Nakamoto. It operates on a peer-to-peer network without the need for a central authority, offering a decentralized and transparent system for financial transactions.

Altcoins, on the other hand, came into existence as alternative cryptocurrencies inspired by Bitcoin's success. While they share certain similarities, some of the best altcoins introduce variations in their underlying technology, features, and purposes. These alternative cryptocurrencies strive to address specific challenges or cater to unique use cases that may differ from Bitcoin's primary focus, such as DeFi, privacy and anonymity, smart contracts and dApp development, interoperability, and tokenization of assets.

Another notable distinction lies in their market capitalization and adoption. Bitcoin maintains the largest market capitalization among all cryptocurrencies, often regarded as the flagship digital asset. Its widespread adoption, recognition, and liquidity make it the prominent player in the cryptocurrency market. Altcoins, on the other hand, encompass a vast array of digital currencies, each with its own market capitalization and level of adoption. Some altcoins have gained significant popularity and market value, while others may have more limited recognition and liquidity.

Furthermore, altcoins often showcase diverse features and functionalities differentiating them from Bitcoin. For instance, some altcoins prioritize enhanced privacy and anonymity in transactions, implementing advanced cryptographic techniques to protect user identities. Others, such as DOT and ADA, focus on scalability solutions to overcome the limitations of Bitcoin's network, aiming to process transactions more efficiently. Additionally, altcoins may specialize in specific use cases, such as DeFi, gaming, supply chain management, or identity verification, offering tailored solutions for these industries.

Lastly, the consensus mechanisms employed by Bitcoin and altcoins can differ. Bitcoin relies on the Proof-of-Work (PoW) consensus algorithm, where miners compete to solve complex mathematical puzzles to validate transactions and secure the network. In contrast, altcoins may utilize alternative consensus mechanisms, such as PoS, DPoS mentioned previously, or other variants. These consensus mechanisms determine how network participants reach a consensus on transaction validity and maintain the blockchain's integrity.

Altcoins can be broadly categorized into several types based on their functionalities and objectives, including:

Utility Tokens: Altcoins that serve a specific purpose within a decentralized application or platform, offering access to unique features, services, or rewards, such as unlocking premium features, accessing exclusive content, or utilizing specialized tools and resources within various Web3 platforms.

Stablecoins: Cryptocurrencies are designed to maintain a stable value by pegging them to an external asset, such as a fiat currency or a commodity. 

Privacy Coins: Altcoins focused on enhancing privacy and anonymity in transactions, employing advanced cryptographic techniques to protect user identities.

The categorization of altcoins is based on various criteria that consider their functionalities, underlying technology, and intended use cases:

Technology: Altcoins may utilize different blockchain platforms, consensus mechanisms, programming languages, or interoperability protocols.

Use Case: Altcoins may target specific industries or solve particular problems, such as DeFi, gaming, supply chain management, or identity verification.

Tokenomics: Altcoins may have different supply models, inflation rates, distribution mechanisms, or economic incentives designed to align with their intended purposes.

Altcoins may possess a unique valuation and market dynamics setting them apart from cryptocurrencies like Bitcoin. This will be largely subjected to the project’s technology and development, investors supporting the project, specific use cases of the assets but also the market sentiment at large.

Bitcoin Dominance: Bitcoin's dominance in the cryptocurrency market often impacts the overall sentiment and investment flow. When Bitcoin experiences significant price movements, it can influence the prices of altcoins as well. 

Market Sentiment and News: Market sentiment and external news events can significantly impact altcoin prices. Positive news, such as regulatory approvals or partnerships, can drive prices higher, while negative news or market uncertainties can lead to price declines.

Technological Advancements: Technological advancements and developments within the altcoin's ecosystem can affect its price. Innovations, protocol upgrades, or the introduction of new features may drive increased investor interest and positively impact valuation.

Altcoin market cycles typically go through phases of accumulation, growth, euphoria, correction, and consolidation. During the accumulation phase, prices may remain relatively stable as investors accumulate altcoins at lower prices. The growth phase is characterized by significant price appreciation driven by increasing demand and positive market sentiment. Euphoria follows, where prices often experience rapid and unsustainable growth.

However, after the euphoria phase, a correction usually occurs, leading to a decrease in prices as market participants take profits. This correction phase is a natural part of market cycles and is often followed by a period of consolidation, where prices stabilize before the next cycle begins again.

History is filled with examples of altcoins with a dramatic rise and fall in value. For instance, during the 2021 cryptocurrency bull run, altcoins like Ethereum, Ripple, and Litecoin experienced significant price increases, reaching all-time highs. However, when the market corrected, many altcoins saw substantial price declines, leading to a sobering period for investors.

Similarly, the emergence of DeFi in 2020 brought attention to some of the best altcoins for decentralized finance like COMP and UNI. These assets saw rapid price appreciation as the DeFi sector gained popularity. However, subsequent market corrections also affected their prices.

It's essential to note that altcoin investments come with inherent risks, and price volatility is a characteristic feature of this market. By grasping the valuation and market dynamics of altcoins, considering the factors influencing their prices, understanding market cycles, and analyzing case studies, investors can navigate the altcoin market with greater confidence.

Case Studies: Dramatic Rises and Falls in Altcoin Value

Investing in altcoins can be an exciting opportunity for individuals seeking to diversify their investment portfolios and potentially benefit from the development of various projects. However, it's important to understand the potential rewards and risks associated with altcoin investments, as well as the steps to choose and trade altcoins effectively.

Altcoin investments offer several potential rewards, including:

Greater Growth Potential: Some altcoins have the potential to experience significant price appreciation over time, especially those associated with innovative technologies or disruptive use cases. As the technology evolves and the asset gains a wider use case, its price may increase significantly in a short period of time. However, the opposite is also possible, with assets suddenly losing their valuation due to project mismanagement, competition or other factors. 

Portfolio Diversification: Investing in altcoins allows diversification beyond traditional investments, such as stocks and bonds. Altcoins have the potential to perform independently of other asset classes, reducing overall portfolio risk.

Early Adoption Opportunities: Investing in promising altcoins at an early stage can provide the opportunity to participate in the growth of emerging technologies and ecosystems, potentially resulting in substantial returns as the projects mature and become widely adopted.

Altcoin investments also carry risks that investors should be aware of, including:

High Volatility: Altcoin prices can be highly volatile, experiencing rapid and substantial price fluctuations. This volatility can lead to significant gains but also expose investors to potential losses.

Regulatory and Legal Risks: Altcoins operate in a rapidly evolving regulatory landscape. Regulatory actions, legal challenges, or changes in government policies can impact the value and viability of altcoins.

When choosing altcoins for investment, it might be useful to consider the following factors:

Research and Due Diligence: Conduct thorough research on the project, including their technology, team, use case, market competition, and community support. Understanding the fundamentals and long-term viability of an altcoin is crucial.

Market Analysis: Analyze market trends, evaluate the altcoin's historical price performance, and consider factors like market demand, future adoption, trading volume, and liquidity. Technical and fundamental analysis can aid in identifying investment opportunities.

To buy and sell altcoins, follow these general steps:

Choose a Cryptocurrency Exchange: Sign up with Coinmetro today, in case you are not already registered, and gain instant access to 60+ cryptocurrencies and various crypto products that you can easily integrate. 

Fund Your Account: Instantly deposit funds into your Coinmetro wallet using fiat currency or other cryptocurrencies.

Place Orders: Use the exchange's trading interface to place buy or sell orders for the desired altcoins. Set the desired price and quantity, and review the order details before confirming.

Monitor and Manage Your Investments: Regularly monitor your altcoin investments, stay updated with market news, and consider implementing risk management strategies like setting stop-loss orders or taking profits at certain price levels.

Remember, investing in altcoins involves inherent risks, and it's crucial to stay informed, exercise caution, and make considerate decisions based on your investment goals and risk tolerance.

Unlock Altcoin potential: Join Coinmetro today for seamless transactions

Since their emergence, alternative cryptocurrencies have had a significant impact on the crypto ecosystem and the broader economic landscape. Understanding the role they play is crucial for comprehending the overall dynamics and evolution of the cryptocurrency market.

Innovation and Technological Advancement: Altcoins have been instrumental in driving innovation and technological advancement within the crypto ecosystem. They often introduce new concepts, features, and use cases that push the boundaries of blockchain technology. Altcoins foster healthy competition, inspiring developers to explore alternative solutions and improve existing frameworks.

Diversification of Investment Opportunities: Altcoins offer investors a diverse range of investment opportunities beyond Bitcoin. They provide access to a wide array of projects, each with its unique value proposition and potential for growth. Altcoins allow investors to participate in emerging sectors such as DeFi, NFTs, Web3 gaming, and more.

Enhanced Functionality and Specialized Use Cases: Altcoins often specialize in addressing specific challenges or catering to unique use cases that may differ from Bitcoin's primary focus. For example, altcoins like Ethereum introduced smart contract functionality, enabling the development of dApps. Altcoins like XRP focus on facilitating fast and low-cost cross-border transactions, particularly in the banking and financial sectors. 

Market Liquidity and Trading Opportunities: Altcoins contribute to the overall liquidity of the cryptocurrency market. They provide additional trading pairs and enhance market depth, allowing for increased trading volume and improved price discovery. Altcoins offer traders and investors ample opportunities to participate in various markets and capitalize on price movements.

Experimentation and Proof of Concept: Altcoins serve as platforms for experimentation and proof of concept for new ideas and concepts in the crypto space. They allow developers to test innovative concepts, algorithms, and consensus mechanisms, which may later be adopted by other projects or integrated into existing cryptocurrencies.

Driving Community Engagement and Participation: Altcoins often foster vibrant and active communities around their projects. These communities engage in discussions, contribute to development, provide feedback, and support the growth of the ecosystem. Altcoin communities are vital for building awareness, driving adoption, and shaping the future direction of the respective projects.

Altcoins continue to shape and evolve the crypto ecosystem, contributing to its overall growth, innovation, and adoption. Their impact extends beyond Bitcoin, offering unique investment opportunities, driving technological advancements, and catering to diverse use cases across industries. By recognizing the role of altcoins, stakeholders can better understand the dynamics and potential of the crypto market as a whole.

What altcoins are you holding in your Coinmetro wallet? 
Stay close to Coinmetro to easily buy and sell 60+ altcoins in a simple and straightforward manner. Join the Coinmetro community on Discord and Telegram to discuss altcoins news and investment opportunities with other forward-thinking traders and investors.

Should you need any help, feel free to reach out to our world-class Customer Support Team via 24/7 Live Chat or email at hello@coinmetro.com. 

To become a Coinmetro user today,  Sign Up now, or in case you are already registered, head over to our new Exchange and experience our premium trading platform.

The Role of Altcoins in the Crypto Ecosystem

Dive into the world of crypto with our beginner-friendly guide. We dissect the complexities of crypto trading, making it easy and accessible for anyone to start.

What is The Best Way to Start Crypto Trading | Coinmetro

The road to becoming an accomplished crypto investor and trader is challenging and demanding. At Coinmetro, we have made a commitment to support our users in their new financial journey by not only giving them the tools and products, but also offering the knowledge and education they need to become better. But no matter how much you read and learn, at some point you will need to get some skin in the game. Trading and investing is best learned by doing. Therefore, the best potential way to start can be to try the Coinmetro Demo Platform. Learn to trade risk-free and build your confidence for the real markets.

 📈Try the Coinmetro Demo Platform 📉

When you first start trading, even though you might have knowledge and awareness about financial markets, you will notice rather soon that theory and practice are not always the same. This is partly because live trading involves making critical decisions in a time-sensitive manner. Emotions, stress and uncertainty all factor in, making trading an intricate discipline. 

When you demo trade, you get a chance to feel what live trading is really like, without risking your money at a point when you are still learning. Here’s why using the Coinmetro Demo Platform can make you a better trader:

You get a chance to understand how markets and prices move in real time. 

You can perfect your trading strategies and find out what works and what doesn’t.

It allows you to get familiar with our platform so you can act with confidence and take advantage of all features.

It builds your mental discipline and strength needed to tackle the markets.

But a demo account is not just for beginners. You might be an experienced trader who wants to test a new market or a new strategy. Or perhaps you want to start trading on Margin. The best way to do so is in a demo session that will allow you to fine-tune your approach without risking your funds.

We’ve made it easy for you to start trading on our demo platform. Just head to the Coinmetro Demo section and you are good to go! You don’t need to sign-up for an account or pass any KYC (Know Your Customer) process. With our demo experience, you instantly get access to several essential Coinmetro products:

We encourage you to start demo trading and get familiar with our new platform. Get a feel of how markets and prices move in real time. Place your first trades and perfect your strategy to see what works best. Build your confidence and experience to soon start benefiting from the potential of real trading and investing. 

Analyzing your past record is also an important part of successful trading. Make it a habit to look back at your activity and understand what you did right, what you could have done better, or perhaps what you should avoid altogether in the future. 

With recent events in the global economy, it becomes increasingly clear: the mission for a better financial journey is each and every one’s own responsibility. More than ever, we must all learn the means and tools designed to shape a better economic future. Fortunately, the technology is here to free us all from irresponsible monetary policies, political turmoil and rampant inflation. 

How are you building your financial wellbeing? Do you have a strategy for the current bear market? At Coinmetro, learning is a never-ending process. Discover our Demo Platform and learn how trading crypto can potentially become profitable for you. Make sure you keep an eye on our Learning Lab as well – to get knowledgeable and learn more about investing and trading crypto.

❓Did you know that we recently implemented a major update to the Coinmetro Margin Platform? The change comes with a redefined user experience and more innovation in the Spot Exchange and Mobile App. All updates have been designed and implemented with the purpose of giving you a performant, safe and user-friendly experience, while helping you learn and develop your trading skills. 

In light of the recent updates, Oliver Goble (Coinmetro Head of Product) did a live demo of our Margin Trading platform. Watch the session HERE to learn more about our new Margin Exchange and understand what the new update can bring to you as a user.

Let us know what you think about our Demo platform via Discord and Telegram. To become a user today,  Sign-Up now, or head to our new Exchange if you are already registered and experience our premium trading platform. Should you need any help, feel free to reach out to our world-class Customer Support Team via 24/7 live chat or email at hello@coinmetro.com.

Are You Becoming a Better Trader with Each Day?

What is The Best Way to Start Crypto Trading?

Discover the differences between coins and tokens and their functionality on the blockchain on Coinmetro's platform

Coins vs Tokens: Understanding the Differences

What is the difference between coins and tokens in crypto? No matter how frequently these terms are used – and often misused – one thing is certain: the two fundamental words are not synonyms.

A cryptocurrency that possesses its own native blockchain network is referred to as a coin. For instance, the most widely known and used coin, Bitcoin (BTC), is wholly supported by its own blockchain network.

Similar to traditional currencies, crypto coins are primarily intended to serve as a form of value storage and a medium of exchange.

Although the underlying technologies of cryptocurrencies are typically created from scratch, the existing source codes are also used to coin new digital currencies. Litecoin (LTC) being based on the open source protocol of Bitcoin is a good example.

The main difference between tokens and coins is that a token runs on another blockchain. The most popular and used types of tokens, ERC-20 and ERC-677, operate on the Ethereum blockchain.  The mother of all token standards, ERC-20 is used to create and issue smart contracts, whereas ERC-677 is an extension of ERC-20, offering useful functionality without conflicting with the primary standard. Moreover, ERC-20 is used by smart contracts for accounting. 

Did you know that LINK (Chainlink) is the most popular ERC-677 token? Chainlink can connect a variety of data types with different blockchains, opening up a wide range of potential applications for this decentralized oracle.

For anyone new to Coinmetro, XCM is the native utility token of the Coinmetro platform. It fuels our entire ecosystem and acts as an access point to ever-growing rewards and perks for  holders.

It is interesting to know that in addition to serving as a digital representation of non-fiat assets traded on-chain, such as NFTs, tokens can also be used to exchange money. Exchange tokens function just like any other cryptocurrency token. You can trade them on secondary markets or hold them for speculative purposes.

Last but not least, tokens can be used to digitally trade real-world assets, such as stock, gold, or real estate, etc.

Here are the important points to be noted when comparing crypto coins and tokens:

Tokens are much easier to create. Rather than writing a new code, you can utilize the one available on an open-source blockchain platform. In other words, anyone can create their own token – even if just for fun!

As compared to coins, tokens have a different structure. Tokens are created on existing blockchains like the Ethereum blockchain, as opposed to coins, which have their own unique blockchains.

Coins are a form of digital currency that can be used to buy or sell goods and services, whereas tokens can serve as company shares.

Finally, tokens may provide various use-cases within the networks, depending on the project.  For instance, as a form of payment within specific blockchain platforms, whereas coins operate independently.

Unlike tokens, coins are created on independent blockchain networks.

Unlike coins, tokens can be used to digitally represent practically any asset in the world.

If you found this article helpful and want to learn more about crypto, dive into our Learning Lab and become more knowledgeable from multiple angles. We encourage you to also join our Discord and Telegram channels to chat with like-minded people and discover something new every day.
Ultimately, theory is important, but practice makes perfect. Whenever you feel ready, Sign Up for a Coinmetro account to put your knowledge to work! If you are a registered user, feel free to Log In to your account now.

Explore the concept of staking crypto and its potential benefits on Coinmetro's platform

Staking Crypto: Everything You Need to Know

Did you know? Over the past century, traditional banking savings account returns have become progressively smaller. Today, the interest rate you are getting from your deposit is paper-thin at most. Truth being told, banks have made it harder and harder for everyone to develop an investment and benefit from the system. 

Here are some numbers that are hard to digest: four decades ago, annual returns on savings accounts were over 11%. Today, most banks offer interest rates as low as 1-2%. Factor in the record-high inflation and the truth becomes even grimmer: you can actually lose money on your savings because of the depreciating fiat currency. 

 How are you going to protect and advance your investment so that century-old monetary practices don’t eat up your hard-earned money?

 Isn’t it strange how everything around us seems to evolve except financial products? We have better technology and tools at our disposal yet it seems harder and harder to achieve financial competence and freedom. This is because traditional banking no longer understands people, failing to deliver any real value back to their customers.

Just like transportation, communications and other verticals have been and continue to be disrupted by better products, the way people earn money is now also getting better.

So what is staking? Simply put, staking crypto is a new and innovative way for anyone to earn money. More precisely, it is a process that involves committing your crypto assets to support a blockchain network and confirm transactions. By doing this, you can earn passive income on an ongoing basis. 

As stated above, when you stake crypto, your assets don’t just sit there doing nothing. Actually, they perform an essential function in the blockchain economy by validating transactions. In PoS (Proof-of-Stake) blockchain networks, crypto assets are needed to be staked and used as validators for all transactions in the chain. This way, your assets contribute to the security and efficiency of the network. It’s worth mentioning that the PoS technology is more efficient and eco-friendly than the energy-intensive PoW (Proof-of-Work).

In other words, crypto staking now offers everybody the chance to become an investor and earn value from their money in a simple way. 

Why become an investor in the first place? You might have a comfortable monthly income that covers all your needs and more. Why risk money investing? Simply said, inflation is reducing the value of your money over time. Against inflation, the rich and the poor all get the same treatment. 

Saving money is not enough. Because inflation rises faster and higher than the rate at which most people can save money. So we need to make money work for us and advance our investment. 

An important thing is that with crypto staking, anybody can become an investor. Regardless of your profile and financial background, you can start staking crypto with as little as $10. 

Have you ever wondered what banks do with your money when you deposit it in a savings account? They invest that money to earn their own profits, giving back a very small percentage. Some of the biggest banks are already investing in the crypto and the blockchain space.

So why not become an investor yourself and cut out the middlemen, the stiff bureaucracy and the unreasonable low returns you would normally get from banks?

Staking crypto is simple and it takes little to no time to get involved. First, you have to choose a token and project that you understand, believe in, and think will do good in the future. Get familiar with the return interest rates. When you are ready to start your journey, you have several options:

Certain exchanges may offer several advantages to your staking plan, like increased returns or added assets to your portfolio.

By using a staking-as-a-service platform, you benefit from a third-party service that takes care of all the technical aspects.

By staking your assets on an offline hardware wallet, you eliminate the risk of any potential hack.

 Staking via Decentralized Money Market Protocol

With the rise of DeFi, decentralized money market protocols now enable users to borrow and lend their on-chain crypto with just an internet connection. 

When you stake crypto assets, it’s important to know that the price of those tokens and coins is changing over time. This has an impact on your returns. More precisely, if the assets you stake now have a higher price than when you started, your rewards will be higher than initially calculated. The opposite is also valid: if the price goes down, your return diminishes, but most crypto assets have continued to rise in the long run.

Read more about how to stake crypto in this article.

At Coinmetro, we are continually listening to our community to understand what kind of financial solutions people need. In time, we have perfected our MARs (Multi-Asset Rewards) program so that today it is one of the most lucrative passive income plans in the industry.

With MARs, you can stake our native token XCM and earn back rewards in multiple other assets as well. Currently, FLUX and THT are included in the system, but more staking options are around the corner. Join MARs today to start earning and diversifying your portfolio with a people-centric passive income plan.

Another valuable tool that can give you a positive edge in the markets is the DCA (Dollar-Cost Averaging) investment method. We will soon implement the DCA method at Coinmetro, giving you access to a more structured investment plan. 

With the DCA method, you can invest predefined amounts at predetermined time intervals. Why is this important? By doing this, you can potentially better mitigate market volatility and easily scale your portfolio over time. It is also a more disciplined approach. By sticking with the plan, you can take emotion and stress out of the equation, which can otherwise make it hard to make decisions. 

We are always innovating and thinking ahead, in order to meet our community’s needs and to provide more value to you. As we build our Learning Lab, our desire is to provide meaningful insights and learning opportunities that you can easily integrate into your trading and investing. 

Spread the good news about all the developments we’re regularly pushing forward at Coinmetro! Join our platform and invite your friends along, so you can all benefit from a people-centric crypto ecosystem. Hang around on our Discord and Telegram channels and head to the Coinmetro exchange now if you are already a user, to experience a premium trading platform.

Get a comprehensive understanding of cryptocurrency wallets and their functionality on Coinmetro

Crypto Wallets: What Are They and How Do They Work?

A crypto wallet lets you store, send and receive cryptocurrencies. Just like a real wallet stores your cash and cards, crypto wallets store your ‘passkeys’ which grant you access to your digital assets.

Cryptocurrency wallets make the blockchain accessible to everyone. The user-friendly experience of crypto wallets allow anybody, anywhere to manage digital assets with ease.

The first crypto wallet belonged to Satoshi Nakamoto, the anonymous Japanese man (or group of people) who invented Bitcoin and set the stage for all cryptocurrencies. The second oldest wallet belongs to Hal Finney, an American cryptographer who corresponded with Satoshi about Bitcoin and reportedly was the first person to become an early user of Bitcoin.

Wallets contain two keys; a public key and a private key. You can use your public key to transact, or send funds from one address to another. If you send coins from one address to another, you are signing your transaction with the private key for both addresses. Think of a cryptocurrency wallet as a bank account for your digital assets. These wallets use an internet connection to access the blockchain network for the cryptocurrency you’re using.

It’s important to understand how wallets work. If you think about it, cryptocurrencies are just bits of data stored in a database. These bits are scattered all over the database and your Wallet finds all of the bits associated with your public address and sums up the amount for you in the app’s interface.

Wallet type is a very important thing to consider before you start using cryptocurrency. There are two main types of wallets, custodial and noncustodial. A custodial wallet is hosted by a third party that stores your keys for you. This third party could be an enterprise like a data storage company, your bank, or a cryptocurrency exchange. A noncustodial wallet is a wallet in which you take responsibility for securing your keys.

Furthermore, there are two subcategories of crypto wallets: hot and cold. Hot wallets have access to the internet, or to a device that is connected, while cold wallets don’t. A cold wallet that is completely offline will be, generally speaking, safer than a hot wallet with internet access.

These two categories can further be divided into three subcategories: software, hardware, and paper.

Software wallets are installed on a desktop, laptop computer or mobile device and can access your cryptocurrency, make transactions, display your balance, and much more.


Hardware wallets are the most common type of wallet because they make it easy to protect your private keys and remove them from your device. These gadgets look like a USB drive, and modern hardware wallets have several features, such as Bluetooth compatibility, two-factor authentication and password protection.


Paper wallets are the oldest and simplest form of cold storage. With a paper wallet, you print or type the private and public keys on paper which you keep in a safe place. It’s important to ensure that your funds don’t get lost or destroyed. This is not the most convenient way to store crypto, but it could be safer than leaving them on your computer or mobile device.

Keeping your crypto safe is of utmost importance and you should not take this lightly. The most vulnerable point could be your digital wallet or exchange provider. These days, cybercriminals use advanced techniques to steal coins and tokens. Sadly, there are automated bots that can drain crypto accounts instantly as well as several other malign practices. Let’s find out how you can avoid all that and keep your hard-earned crypto safe.

Use a cold wallet – By far, one of the best methods to keep your crypto away from cybercrime is by using a cold wallet. Having your assets safely stored on a hardware wallet that is not connected to the internet or other device will make it impossible for hackers to gain access. Be careful though where you keep your cold wallet – in this case, losing the hardware will mean saying goodbye to everything that is stored in your wallet.

Avoid scams – These days, scams come in all shapes and sizes. Be careful not to click on any suspicious ads, emails, or social media messages that might lead to a hack. Moreover, pay attention not to give your credentials away on fake cloned websites or fake apps!

Use a secure device and internet connection – While trading or accessing your digital wallet, doing so via a public Wi-Fi network is risky. It is recommended to use an up-to-date device as well as a secure internet connection. You can increase your security and privacy by using VPN software that changes your IP address and location.

Use multiple wallets – Another preventive measure is to store your crypto on multiple wallets. Perhaps a mix of hot and cold wallets would increase the security of your entire portfolio. In case something happens with one of the wallets, you will not lose everything in the process.


The crypto space has no shortage of scams and fraudulent behavior. The FTC reported an annual increase of 312% in fraud and scams related to crypto in the past few years. If you invest in crypto, it is your responsibility to protect your portfolio and avoid hacks. In case of a cybercrime attack, sadly no one will be able to intervene or reimburse you.

At the beginning of this summer, Coinmetro partnered with Fireblocks, the #1 Institutional Custody Platform and also the one with the most integrations into Crypto/DeFi. Thousands of crypto, Web3 and digital asset businesses use Fireblocks software and APIs for custody, to manage treasury operations, access DeFi, mint & burn tokens, and manage digital asset operations.

The partnership actually kick-started our summer-long 15 Weeks of Summer campaign – a program designed to bring more value to Coinmetro exchange and into your portfolio.

Hang around on our Discord and Telegram channels to chat, have fun and learn something new every day. Sign-up today, or head to our new exchange if you are already a user and be a part of one of the fastest-growing crypto institutions.

Learn about the Ethereum merge and how it will impact Coinmetro's platform and the blockchain industry

The Ethereum Merge at Coinmetro: What You Need to Know

One of the most important upgrades in the history of Ethereum (and potentially the whole blockchain industry) is taking place in less than 48 hours. In essence, the Ethereum Merge will implement the Beacon Chain as the main engine of block production, improving the network and the entire decentralized on-chain industry. The change will eliminate the energy-intensive mining procedures and will allow staking ETH for securing the network.

Given that many other blockchain and crypto institutions rely on it, this innovative step is a major milestone for the entire landscape, making blockchain and crypto more efficient and eco-friendly. Let’s find out more about what this shift means for Coinmetro and you as a user.

What Does the Major Blockchain Evolution Bring?

In anticipation of the upcoming Ethereum Mainnet Merge expected between the 10th and 20th September 2022, please note:

Coinmetro will be halting ETH withdrawals around the time of the Merge. ETH withdrawals will be resumed once the network has stabilized. This is expected to begin from 21:00 UTC 14 Sept.

Deposit confirmations will be increased to 1,000 around the time of the upgrade.

We strongly recommend you refrain from depositing ETH before the Merge. Confirmations will be resumed to a normal level once the network stabilizes.

We do not expect any disruption to trading during the upcoming Ethereum Mainnet Merge. However, please be mindful of the additional volatility that may persist during this period and the impact this can have on liquidity.

If the Ethereum Mainnet Merge is uncontested, and no new token is created, Coinmetro will aim to resume deposit and withdrawal services as soon as the network stabilizes.

If the Ethereum Mainnet Merge is contested and results in a chain split, Coinmetro will support the dominant chain with no new tokens being immediately listed.

Any potential new token listing on Coinmetro will be reviewed by our listing committee.      

Exciting times indeed, as the change is heralding a better way forward for the entire on-chain and tokenized future. The Merge is also bound to speed up global crypto adoption, as some roadblocks will be addressed, regarding sustainability, speed, security and scalability.

Take a moment to get knowledgeable about this important change by going through these articles we recently published:

As always, our 24/7 live support team is well aware of the upcoming change and is prepared for any inquiries or situations that might occur. Feel free to reach out if you need help or more information.

Stay in-the-zone with Coinmetro! We have some major innovations ourselves already scheduled and they will be announced soon. We are looking forward to sharing it all with you and hearing your thoughts about it. In the meantime, if you are not already a member, join our Discord and Telegram channels for useful and knowledgeable discussions about the Ethereum Merge and what not. Keep it Coinmetro!

Explore the Ethereum merge roadmap and its implications for the blockchain industry on Coinmetro's platform

The Ethereum Merge Roadmap in Brief: A Beginner's Guide

One of the most important upgrades in the history of Ethereum is expected to take place in Q3 2022. The Merge stands for the official switch to the Beacon Chain as the engine of block production, and it is likely to positively impact the network and the whole blockchain space by eliminating the need for energy-intensive mining and securing the network using staked ETH, thus making Ethereum more scalable, secure, and sustainable. Here is a brief overview of the Ethereum Merge Roadmap.

The Merge will join the existing execution layer of the Ethereum Mainnet – the current version of Ethereum – with a recently developed Proof-of-Stake (PoS) consensus layer, the Beacon Chain.

The Beacon Chain is a coordination mechanism for the future Ethereum ecosystem, responsible for creating new blocks, ensuring these new blocks are valid, and rewarding validators with ETH for keeping the network secure.

Once the Ethereum Mainnet and Beacon Chain are merged, Proof-of-Work (PoW) will be permanently replaced by PoS. This will result in Ethereum becoming much more scalable, secure, and sustainable by eliminating the need for energy-intensive mining and securing the network using staked ETH.

Ever since Ethereum was created, developers have been working hard preparing for a future transition away from PoW to PoS.

Also read A Brief Introduction to Ethereum

On December 1, 2020, the Beacon Chain mechanism was created, which has since been running in parallel, existing as a separate blockchain to the Mainnet.

When the Merge is finally complete, valid blocks will no longer be produced by means of mining. In other words, this role transfers to PoS validators who will be responsible for processing the validity of all transactions and proposing blocks.

According to the Ethereum Merge Roadmap, the Merge date is scheduled for September 15th or 16th, 2022, with Ether (ETH) prices jumping already ahead of the notable upgrade.

But what will happen to Ethereum Mainnet after the Merge? If you are worried about your funds, don’t be. As Ethereum gets merged with the Beacon Chain, it will also merge the entire transactional history of the Mainnet.

Related: How to Withdraw Ethereum to Cash?

 As the long-awaited Merge is coming, we encourage you to join Coinmetro’s Discord and Telegram communities to stay better informed about the latest crypto developments.

Don’t stop there! Sign up to our platform in just a few steps to start trading crypto today!

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