Whilst cryptocurrency can be a bit of a minefield, there are also things such as cryptocurrency wallets that need to be taken into account and understood, otherwise the whole experience could be one that is rather poor compared to what it could be.
Indeed, whilst there are a number of different cryptocurrency wallets available to choose from, with sites having produced articles such as a coinbase wallet review to help, it is important to be able to know what a cryptocurrency wallet is to begin with and how they work.
What Is a Cryptocurrency Wallet and How Do They Work?
Essentially, a cryptocurrency wallet is a piece of software that can securely store all of its user’s private and public keys. These keys are what the wallet uses to interact with a blockchain to give users the ability to view their balance, send and even receive more cryptocurrency.
Indeed, one way of looking at a cryptocurrency wallet is in the old-fashioned way of being a bank or an ATM as they simply provide users with access to all of the funds that they have stored within the blockchain being used.
For those that may have not realised, blockchain is a state-of-the-art public ledger that is highly secure and keeps track of all cryptocurrency transactions that take place. Therefore, it is incredibly important not to allow anyone access to the cryptocurrency wallet, otherwise it could spell disaster.
How Can Money Be Sent and Received With a Cryptocurrency Wallet?
In the above section, it was mentioned that a cryptocurrency wallet will allow users to be able to send and receive cryptocurrency, so questions may have arisen regarding how this kind of transaction can take place.
Naturally, it has been made relatively simple for users to do this, as they will only be required to need two things. They will need to have the cryptocurrency that they want to send (if they are transferring it to someone else) and the details of the cryptocurrency wallet for the person who will receive it; much like a traditional bank transfer.
Once a transaction has been made between the two respective cryptocurrency wallets, the receiver will have control of the cryptocurrency that has been sent and will see that their overall balance has increased, whereas the sender will see theirs decrease.
The transaction will also be recorded on the blockchain, which means it can not be reversed or changed.
Being as Secure as Possible With a Cryptocurrency Wallet
Whilst the processes involved with a cryptocurrency wallet are relatively simple and easy to understand, it is important to ensure that users remain as vigilant and secure with their wallets as they would with more traditional forms of currency transactions.
There are a number of ways in which users can be safe and secure when using a cryptocurrency wallet, although one of the best things they can do is to continue to backup the wallet. If the wallet has not been backed up and the private key is lost, the cryptocurrency that is in the wallet will be lost forever.
Other security options include using long passwords, two-factor authentication, conducting regular security scans of your device whilst also staying up to date with the latest protection.
Furthermore, ensuring that the right cryptocurrency wallet address is used is a must as well, as getting cryptocurrency back when a human error has been involved can be incredibly time-consuming. One tip is to simply copy and paste the address to avoid this issue, whilst also double-checking the details would not go a miss.
Cardano: Can this cushion the mounting bearish pressure?
Cardano has garnered much attention from the crypto community due to constant network upgrades over the past few months. After the successful Mary hard fork, Cardano now aims at bringing smart contract to its system via the highly anticipated Alonzo upgrade. Its first-ever smart contract written in Plutus went live on the Alonzo Testnet a week ago.
While these developments were certainly immune and separate from a bearish broader market, its native cryptocurrency, ADA, was not.
Weekly losses piled up to over 30% as sellers ramped up pressure in the ADA market. The cryptocurrency suffered a sharper decline once a breakout above $1.61 was rejected during the last week of trade.
Cardano Daily Chart
Since the broader market crash, ADA has been unable to rise above its upper ceiling of $1.88. Bullish momentum fizzled out as ADA failed to breach this resistance and sellers have dictated market movement since. Its latest attempt at a revival came via a breakout attempt above $1.61 but the 20-SMA acted as a resistance mark and denied further upside. With prices nosediving further over the last 24 hours, focus now shifted to its 19 May swing low of $0.95.
ADA was on a tight rope as it approached a defensive mark of $0.95. This region not only formed a support mark ranging all the way to early Feb, but was also bolstered by the presence of the 200 Simple Moving Average line. The Relative Strength Index moved in the oversold region and a reversal was expected over the coming days. Stochastic RSI even showed a bullish crossover and suggested that the trend could shift in favor of buyers.
If a reversal is triggered at $0.95, ADA could witness an ascent back towards $1.15. Visible Range’s point of control lay within this area and an extended rise was unlikely. However, traders must also be wary of breakdown as well. Failing to cut losses at $0.95 could result in a further 30% decline towards $0.673. According to Awesome Oscillator’s red bars, such a move was not within the realms of possibility.
With losses accumulating in the market, ADA now resorted to its defensive line of $0.95. The 200-SMA moved within this zone and strengthened its defensive capabilities. A temporary pickup towards $1.15 can be expected once buyers return to the broader market but the threat of an extended sell-off cannot be discounted as well.
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Karura (KAR) Wins First Kusama (KSM) Parachain Auction
The Kusama team has announced via Twitter on June 22, 2021, that Karura (KAR) has emerged as the winner of the first-ever Kusama (KSM) parachain auction. The team says over 15,000 participants locked up their KSM tokens in favor of Karura.
Karura (KAR) Becomes First Kusama Parachain
The months of hard work and dedication of the Karura team have finally paid off, as the project has now won a parachain slot on Kusama, laying a solid foundation for its product launch on the network.
Though the team has not talked about the immediate next steps of Kurara, the announcement has attracted positive reactions from Kusama faithful on crypto Twitter nonetheless and the team has hinted that key members of the Kurara project, will be live on #TwitterSpace on June 23, 2021, to answer questions and shed more light on the way forward.
Karura Aiming to Revolutionize DeFi
For those who are unaware, Kurara (KAR) was created by the Acala Foundation and it’s aiming to develop a robust decentralized finance (DeFi) ecosystem in Kusama. When Kurara finally launches, members of its ecosystem will enjoy a plethora of DeFi offerings, including superfast and cost-efficient token swaps, staking, liquidity mining, and more.
At a time when “rug pull” incidents are increasing at an alarming rate in the DeFi space, Karura will definitely provide investors with a reliable platform through which they would enjoy the goodies of decentralized finance, as the platform is backed by highly reputed entities including Coinbase Ventures.
Notably, investors’ confidence in the Karura project is very solid at the moment as evidenced by the overwhelming support Karura got from members of the cryptoverse during its crowd loan event.
Specifically, on June 10, 2021, the team announced that it had successfully raised more than 200,000 $KSM tokens ($100m at the time) from over 8,500 contributors that took part in its crowd loan event via its portal.
According to Karura, contributors will get 12+ KAR tokens for every 1 KSM contributed, early birds will earn an extra 10 percent bonus and on top of that, there’s a five percent referral bonus for eligible participants.
At press time, the price of KSM is hovering around $175.40, with a market cap of $1.51 billion, as seen on CoinMarketCap.
Extreme Fear In Crypto Market, Is It Time To Buy The Blood In Bitcoin?
The past week has been a brutal one for bitcoin and crypto in general. The market has taken hit after hit. So much so that it’s starting to seem like there is no end in sight. Coins have been falling at high percentages. It brings back a popular saying in the financial markets; “there’s blood in the streets.”
Investors have been reacting to this negatively. The Arcane Research Fear & Greed Index has moved back into extreme fear. Going down to the lowest it has ever been this year.
Fear & Greed Index down to 10 into extreme fear | Source: Fear & Greed Index on Arcane Research
The Index currently sits at 10 in extreme fear. This means that investors are scared to put their money in the market. With no more money going into the market, the prices will go down. And we will see even redder charts.
Time To Buy The Blood?
“Buy the dip” is a popular saying in the crypto space. People are encouraged to buy coins when there has been a massive downturn in the price. Quoting this as being the best time to get into the market. But what happens when a dip goes past just being a dip into full-blown bleeding?
With red charts and downward-facing arrows, the market looks like it is bleeding. With massive liquidations going on and not as much faith in the digital assets anymore, the crypto market valuation is down.
Related Reading | Will A Large Spike In Bullish Sentiment Translate To A Bitcoin Rally?
It is always best to buy assets when there is “blood in the streets.” People are wary of the market. Weak hands are pulling out, dragging the price down. And that is when the long-term hodlers come out to play.
There is never any definite way to tell where exactly the market will bottom out. But a good indication is when assets are down so much that people are scared to buy back in. A time where it seems like the coins will never recover and that is the best time to buy.
Is There A Market Recovery On The Horizon?
A trend in the market has usually been massive dips are followed by good recoveries. People buy assets that are down a significant amount in hopes that they will make a profit when it recovers.
Total market capitalization less than 50% ATH | Source: Total Market Cap on TradingView.com
With institutional investors still holding on to their bitcoins, it looks that they still have hope in the market.
MicroStrategy recently bought an additional $500 million worth of bitcoins to add to its growing portfolio. Goldman Sachs had ramped up its bitcoin trading activities by partnering up with Galaxy Capital. All good-faith moves in the market.
But with the hash rate hitting record lows and the number of bitcoin mined in a day dropping, it could be that the market is headed for a » Read more
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In that case, investors might be headed for a long waiting period. As the crypto » Read more
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But there is just as much of a chance for recovery as there is for a total » Read more
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It will not be the first time that the market has pulled ahead after massive downturns. A lot of investors see the falling prices as a chance to buy back in. And more money goes back into the market, so does more faith return. Increasing the valuation of the assets.
Bitcoin has fallen below $30k. Less than half its all-time high. A crucial hold point for the asset.
Ethereum has fallen below $2k.
The total market valuation now sits at $1.21 trillion. Less than 50% from its highest market valuation of $2.4 trillion.
Featured image from Cointelegraph, Fear & Greed Index from Arcane Research, crypto chart from TradingView.com