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Bybit CEO Ben Zhou estimates total crypto liquidations across exchanges could reach between $8 billion and $10 billion. According to Zhou, his platform alone recorded $2.1 billion in liquidations in the last 24 hours, despite Coinglass data showing only $333 million.

In other words, real crypto liquidations across markets could be considerably higher than publicly reported figures. Bybit CEO explained that API limitations on data feeds were the reason behind the discrepancy between reported and actual liquidation figures.

“We have [API] limitations on how much feeds are pushed out per second. From my observation, other exchanges also practice the same to limit liquidation data,” Zhou said.

In response to these reporting gaps, Zhou added that Bybit would begin publishing comprehensive liquidation data.

“Moving forward, Bybit will start to PUSH all liquidation data. We believe in transparency,” he said.

The crypto market reacted sharply, and brutally following Trump’s tariff announcement on Saturday.

Bitcoin fell below $92,000 for the first time since January, while Ethereum and other altcoins recorded double-digit losses. Coinglass data showed over $2 billion in liquidations across crypto derivatives exchanges during the sell-off.

The Crypto Fear and Greed Index dropped from 60 to 44, entering the “fear” zone at its lowest level since October 11.

The President said he would implement a 25% tariff on imports from Canada and Mexico, as well as a 10% tariff on Chinese goods. The measures are scheduled to take effect tomorrow as part of efforts to address border security and combat drug trafficking.

Economists warn that Trump’s new tariffs could worsen inflation, which is still stubbornly below the Fed’s 2% target.

Last week, the central bank decided to leave interest rates unchanged at 4.25% and 4.50%. Fed Chair Jerome Powell indicated that future rate adjustments would be contingent on incoming data, labor market trends, and inflation developments.

Powell had previously indicated that the central bank would assess the impact of Trump’s economic policies to make future rate decisions. Jacob Channel, senior economist at LendingTree, told CBS News that potential changes in economic policies under Trump “might cause a resurgence in inflation or otherwise throw the economy off balance.”

Jeff Park from Bitwise Asset Management, however, suggests Trump’s new tariffs could increase Bitcoin demand as an inflation hedge.

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Let’s dive into this to understand everything related to the best cryptocurrency wallets.

What are Crypto Wallets?

Same as our usual wallets that keep our money, IDs, & ATMs – crypto wallets are used to store cryptocurrencies, digital assets, etc. They are virtual wallets that can keep cryptos safe & secure. More advanced than usual wallets, many crypto wallets can also send, receive, and exchange cryptos.

In today’s cryptographic generation, there are so many crypto exchanges, and almost all of them have their own wallets. So, how would you know which one is best?

Let’s find out and know which are the best cryptocurrency wallets around. But before we proceed further, it’s crucial to understand what makes a crypto wallet best.

What Makes a Crypto Wallet Best?

• Features: The number one point is its features. Features include what services the wallet offers. They must have the following:

1. Crypto Trade or Exchange Facility
2. Dashboard
3. Transaction History

• Security : The Security has to be high.
• Multiple Currency Support: The wallet must support multiple cryptocurrencies.
• Smooth UI: The wallet must be simple & easy to use for the users.
• Speed: The wallet has to be fast & light.
• Mobile Apps & Web Version: The wallet must be available on all the platforms.

The wallet must have the above features to stand out. Below are some of the best crypto wallets:

Best Crypto Wallets

Funex Wallet

Funex mobile wallet allows a user to store, send, and receive cryptocurrencies and digital assets with lightning speed.

The Funex wallet app has the below features:

• Fast & Secure Transactions at just 2-3 Taps
• Easy to Use User Interface & Layout
• Super Smooth Experience
• High-End Security
• Decentralized
• Non-Custodial
• Multiple Cryptocurrency Support
• 24*7 Support
• Live charts & portfolio

Exodus Wallet

Exodus wallet is second in the list as it has the second-highest number of features and other attributes required to be qualified in this list of the top crypto wallets.

With Exodus wallet, a user can:

• Exchange a Large Number of Cryptocurrencies
• Hardware Security for Hardware Wallet
• 24*7 Support
• Built-in Exchange

TRON Wallet

TRON has the common features that every other waller has, but it’s here in this list because of its simple UI. With TRON, users can receive, send, store, and exchange cryptocurrencies.

• Instant Buy & Sell
• Multi-Factor Authentication
• Multi-Chain Support
• Multisignature Feature

Afterthoughts

Clearly, the Funex wallet seems to be the best crypto wallet with the most advanced features & technological benefits. Funex also deals in its own exchange, coin, and gaming segments. It’s an entire world within just one word.

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Bitcoin’s fall to its lowest point since early January caused a massive wave of liquidations across crypto derivatives exchanges, totaling $2 billion. The brutal sell-off followed President Trump’s announcement of new tariffs that sparked inflation concerns, according to Coinglass data.

Trump on Saturday announced plans to impose a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Chinese goods. The measures, targeting America’s three largest trading partners, will take effect on Tuesday.

The President framed the tariffs as part of a broader strategy to address border security and combat the opioid crisis, particularly fentanyl trafficking.

Economists warn Trump’s new tariffs could increase consumer costs as businesses pass on additional expenses.

While the White House maintains these measures will strengthen American manufacturing, experts caution they could worsen inflation and potentially trigger a trade conflict affecting all nations involved, leading to job losses and supply chain disruptions.

The announcement of these tariffs has triggered volatility in the crypto market as investors reacted to fears of mounting inflationary pressures.

Bitcoin fell below $100,000 on Saturday and continued its decline to $92,000, while Ethereum dropped 24% to $2,300, according to CoinGecko data.

The market turbulence led to $1.7 billion in long position liquidations over 24 hours, with Ethereum traders experiencing $528 million in losses and Bitcoin traders facing $421 million in liquidations, Coinglass data shows.

The overall crypto market capitalization shrank by approximately 8%, with most crypto assets recording double-digit losses within a day. XRP and DOGE fell 30%, ADA declined 35%, while SOL and BNB each dropped 15%.

Trump’s tariffs will send Bitcoin prices higher, faster

Analysts believe that Trump’s new tariffs could lead to increased demand for Bitcoin as a hedge against inflation. Yet, many caution that ongoing market volatility may continue to pressure prices downward in the short term.

According to Jeff Park, head of alpha strategies at Bitwise Asset Management, Trump’s tariff policies could inadvertently set the stage for a Bitcoin boom.

This is the only thing you need to read about tariffs to understand Bitcoin for 2025. This is undoubtedly my highest conviction macro trade for the year: Plaza Accord 2.0 is coming.

Bookmark this and revisit as the financial war unravels sending Bitcoin violently higher. pic.twitter.com/WxMB36Yv8o

— Jeff Park (@dgt10011) February 2, 2025

The implementation of new tariffs could weaken the dollar and create conditions favorable for Bitcoin’s growth, Park suggests. This comes as the US grapples with the Triffin Dilemma, where its role as the global reserve currency requires maintaining trade deficits to provide worldwide liquidity.

The tariffs are viewed as a strategic move to temporarily weaken the dollar, potentially leading to a multilateral agreement similar to “Plaza Accord 2.0” that could reduce dollar dominance and encourage countries to diversify their reserves beyond US Treasuries.

The analyst indicates that the combination of a weaker dollar and lower US rates could create favorable conditions for Bitcoin adoption. As tariffs push inflation higher, affecting both domestic consumers and international trade partners, foreign nations may face currency debasement, potentially driving their citizens toward Bitcoin as an alternative store of value.

Both sides of the trade imbalance will seek refuge in Bitcoin, driving its price “violently higher,” Park said.

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Today, cryptocurrency is one of the most fascinating subjects on the internet. More and more people are getting associated with it one way or the other. Some are trading, some are buying, while some are just curious about it. Moreover, since many other things are associated with crypto – they come with it. People, however, have started understanding cryptocurrency, but the other things are yet to make their way into everyone’s heads.

 These things are:

• Cryptocurrency Wallets
• Custodial & Non-Custodial Wallets
• Blockchain Technology
• NFTs
• Crypto Trading

On that note, today, we will try to cover not all but some of them so that everyone can understand what they are. So, let’s get started.

What are Cryptocurrency Wallets?

Cryptocurrency wallets or crypto wallets are just like the regular wallets you use every day. The only difference is regular wallets are used to store real or fiat currency, while crypto wallets are used to store virtual or digital currency, precisely cryptocurrency. In more exact words, crypto wallets don’t actually store the crypto, but they do store that private key that lets you access the crypto. Now, you must be wondering how it works. So, let’s get this.

How Do Cryptocurrency Wallets Work?

The functions of crypto wallets are not just limited to storing cryptos, but they can also be used to send, receive, & trade cryptocurrencies. There are many types of these wallets depending upon the security and purpose parameters.

Provided by the crypto exchanges, crypto wallets come in many forms like hardware & software wallets. Hardware wallets look like Pendrive. The crypto process works like an account login process to conduct transactions. Like an account has two things – username & password. In the same way, the crypto process too has two things or say keys – a public key and a private key.

The public key is publicly available and visible to others. The private key is private, and it has to be kept a secret. To move your crypto from any wallet, you will need both keys. The function of a wallet is to store these keys safely.

The primary two types of crypto wallets are custodial wallets & non-custodial wallets. Let’s understand them one by one.

Check Out: Top 9 Uses Of Cryptocurrency In Daily Life

What are Custodial Wallets

Custodial wallets mean a wallet having a custodian. A custodian is someone to takes care of or looks after something. Basically, like a guardian. So, custodial wallets are those wallets that are looked after by a third party and not you. You don’t really have complete ownership. You’re relying on an intermediary to help you make transactions, and they have access to your private key.

How custodial wallets function

Custodial wallets function differently from non-custodial wallets. In custodial wallets, a third-party service provider, such as a cryptocurrency exchange or a wallet platform, takes care of the management, storage, and security of your private keys and funds. Users should carefully assess their priorities, balancing convenience with security considerations, when choosing between custodial and non-custodial wallet options.

Advantages & Disadvantages of Custodial Wallets

Advantages of Custodial Wallets

• User-friendly and Convenient: Custodial wallets are often designed to be user-friendly and accessible, particularly for individuals who are new to the world of cryptocurrencies. They typically offer simplified interfaces and easy-to-follow processes for managing and transacting with digital assets. This convenience can be especially appealing to those who may not be familiar with the technical aspects of managing private keys and seed phrases.
• Robust Customer Support: Custodial wallet providers usually offer customer support services that users can turn to in case they encounter issues or have questions. This can be reassuring for individuals who are not as confident in troubleshooting technical problems on their own. The availability of customer support can help users resolve issues quickly and efficiently.
• Additional Services and Features: Many custodial wallet platforms go beyond just storing and transacting cryptocurrencies. They often provide additional services and features, such as integrated exchange services, the ability to purchase cryptocurrencies using traditional payment methods (like credit cards), portfolio tracking, and more. This can make it convenient for users to manage various aspects of their cryptocurrency activities within a single platform.

Disadvantages of Custodial Wallets

• Lack of Control Over Private Keys: One of the primary disadvantages of custodial wallets is that users do not have direct control over their private keys. This means that the wallet provider holds the keys on the user’s behalf, and users rely on the provider’s security measures to protect their assets. This lack of control goes against the fundamental principle of self-custody in the cryptocurrency space.
• Centralization and Reliance on Third Parties: Custodial wallets introduce a level of centralization into the ownership and management of cryptocurrencies. Users must trust the custodial service provider to safeguard their funds and ensure reliable access to their wallets. This reliance on a single entity can lead to concerns about censorship, availability, and potential policy changes that might impact the user’s ability to access their assets.
• Vulnerability to Hacking and Theft: Centralized custodial platforms can become attractive targets for hackers due to the potentially large sums of cryptocurrencies stored in one place. If the platform’s security measures are compromised, users’ funds could be at risk of theft. Numerous instances of exchange hacks and breaches in the past have resulted in substantial losses for users who stored their funds in custodial wallets.

Read More: About What is the Difference Between Fiat and Cryptocurrency?

What are Non-Custodial Wallets?

Non-custodial wallets are just the opposite of custodial. They provide complete ownership, authority, & access to your private key. No one other than you can see your private key. And you are solely responsible for conducting all your transactions.

For a better understanding, let’s see the difference between custodial wallets & non-custodial wallets.

How non-custodial wallets function

When you create a non-custodial wallet, a pair of cryptographic keys is generated: a private key and a public key. With a non-custodial wallet, you have complete control over your private key and funds. It prioritize security by allowing you to manage your private key locally on your device. This reduces the risk of hacking and breaches that can occur on centralized platforms.

Advantages & Disadvantages of Non-Custodial Wallets

Advantages of Non-Custodial Wallets

• User Control Over Private Keys: In non-custodial wallets, users have full control over their private keys, which are necessary to access and manage their cryptocurrency funds. This control ensures that users are not dependent on third parties for their funds’ security.

• Enhanced Security and Privacy: Non-custodial wallets prioritize security by allowing private keys to be stored locally on the user’s device. This reduces the risk of large-scale hacks and breaches that can occur with centralized platforms. Additionally, user privacy is maintained because the wallet provider doesn’t have access to private key information.

Disadvantages of Non-Custodial Wallets

• Higher Responsibility and Risk: While having control over private keys is empowering, it also places a higher level of responsibility on users. Losing access to private keys or mishandling the seed phrase can result in permanent loss of funds. Users must take proactive measures to secure and back up their keys.

• Learning Curve for Beginners: Non-custodial wallets can be more technically complex for beginners. Learning about private keys, seed phrases, and the mechanics of blockchain transactions can be overwhelming for those new to cryptocurrencies.

• Limited Customer Support: Non-custodial wallet providers might offer limited customer support compared to centralized platforms. Users might have to rely on community forums, online resources, or documentation to troubleshoot issues.

Also Read: Is a non-custodial wallet safe?

Key Differences Between Non-Custodial and Custodial Wallets

1. Control and Ownership

• User Control Over Private Keys (Non-Custodial): In non-custodial wallets, users have complete control over their private keys, which gives them ownership and autonomy over their cryptocurrency funds.
• Trust in Third-Party Service Providers (Custodial): Custodial wallets require users to trust the platform provider to manage and secure their private keys and funds. Users relinquish direct control in favor of the convenience provided by the service.

2. Security and Privacy

• Decentralization and Trustlessness (Non-Custodial): Non-custodial wallets embody the principle of decentralization and trustlessness, as users control their private keys without relying on a single entity. This enhances security and reduces the risk of single points of failure.
• Vulnerability to Hacks and Breaches (Custodial): Custodial wallets are potentially more vulnerable to hacking and breaches, as attackers might target centralized platforms that store large amounts of cryptocurrencies and user data.

3. User Experience and Convenience

• Learning Curve and Technical Complexity (Non-Custodial): Non-custodial wallets can have a steeper learning curve due to the need to understand private keys, seed phrases, and blockchain mechanics. This might be challenging for beginners.
• Accessibility and Additional Services (Custodial): Custodial wallets are often more user-friendly and accessible, catering to a broader audience. They might offer additional features like integrated exchanges, fiat-crypto conversion, and portfolio tracking.

4. Risk and Responsibility

• User Accountability and Recovery Options (Non-Custodial): Non-custodial wallets require users to be accountable for their private keys and seed phrases. Loss of these critical components can lead to irreversible loss of funds. Users have the option to create secure backups to mitigate this risk.
• Reliance on Customer Support and Backup Systems (Custodial): Custodial wallets offer recovery options if users lose access to their accounts, but they come with the caveat of relying on the platform’s support and procedures. This introduces a different kind of risk if the platform experiences issues.

Also Read: Is Cryptocurrency Truly the Future of Money?

Custodial Wallet vs Non-Custodial Wallets

Refer to the below table to see the advantages and disadvantages of custodial wallets versus non-custodial wallets.

Let’s talk about the benefits and drawbacks of both of these wallets.

The choice between a non-custodial and a custodial wallet depends on your priorities, familiarity with cryptocurrencies, and risk tolerance. Here are some considerations to help you decide:

Which should you choose?

Choose a Non-Custodial Wallet If:

• Security and Control: You prioritize security and want full control over your private keys. Non-custodial wallets provide the highest level of control and security, as you’re not relying on a third party to safeguard your funds.
• Trustlessness: You value the principle of trustlessness and decentralization that cryptocurrencies are built upon. You want to minimize reliance on intermediaries and prefer to interact directly with the blockchain.
• Long-Term Hold: If you’re holding a significant amount of cryptocurrencies for the long term, non-custodial wallets may offer greater peace of mind against potential exchange hacks or platform failures.
• Technical Proficiency: You are comfortable with the technical aspects of managing private keys, seed phrases, and conducting transactions on blockchain networks.

Choose a Custodial Wallet If:

• User-Friendly Experience: You’re new to cryptocurrencies and prefer a more user-friendly and convenient experience. Custodial wallets often have intuitive interfaces suitable for beginners.
• Convenience and Accessibility: You value convenience and ease of use. Custodial wallets often offer integrated exchange services, making it straightforward to buy, sell, and trade cryptocurrencies within the same platform.
• Limited Responsibility: You want a wallet solution that requires less technical knowledge and responsibility for securing private keys. Custodial wallets handle security on your behalf.
• Trading and Active Use: If you’re an active trader or frequently engage in transactions, custodial wallets might provide smoother and faster transaction experiences.

Conclusion

Crypto is a vast world and we are living in the crypto era. The peak is yet to come and so we should be ready for it. Even if you have nothing to do with crypto – we recommend you to have a bit if not all knowledge about it because you never know when you get to deal with it. Custodial & non-custodial wallets are just one kind – there are many other kinds of crypto wallets as well – about them, you can read here. Many exchanges and individual crypto ecosystems are offering their customised wallets with more advanced and user-beneficial features like the Funex wallet.

Your choice should align with your comfort level and goals. Many individuals use a combination of both types of wallets to take advantage of the strengths each offers. For larger amounts of cryptocurrencies, it’s generally recommended to use non-custodial wallets for long-term storage, while keeping smaller amounts on custodial wallets for day-to-day transactions. Always prioritize security by using reputable wallets and following best practices for backup and protection, regardless of the type you choose.

FAQs

The Funex club is inviting any business proprietors who are in ownership of their very own crypto to list crypto coins with the Funex wallet. This will be beneficial to us in terms of growing your community and business around the world. We have numerous coins listed on our platform. We are able to provide the highest quality of service because we ensure that every wallet user and cryptocurrency owner receives the appropriate level of security for their assets. 

The platform that Funex has built for blockchain technology and cryptography is unparalleled in its capabilities and stands out as a leader in its area. It is a wallet that is simple to use, and users will receive a number of advantages along with it that will make their experience a lot more pleasant. Our teams are so efficient that it is very simple to get in contact with us in the shortest amount of time.

Advantages of Funex wallet to the users

Your users will be able to store their cryptocurrencies in the most secure, trustworthy, and high-quality wallet with the assistance of this wallet, which was designed specifically for this purpose. You can give the holders of your crypto access to an excellent and feature-rich platform by listing them on the Funex wallet at a very low fee and you can provide your coin holders with access to an outstanding and feature-rich platform.

To all of the owners of businesses, we offer our most heartfelt greeting, and we promise that the service we give will be of the highest possible quality. We look forward to partnering with you. You are welcome to contact us at any time, and when you do so, we will be prepared to attend to your requirements as quickly as possible. Through the above article, we can recommend you the latest dresses.Shop dress in a variety of lengths, colors and styles for every occasion from your favorite brands.

About Funex wallet

Funex is one of the greatest multi-cryptocurrency wallets available, and it gives its customers access to some of the best wallet features available. It is well-known for its potential of carrying out digital transactions in the quickest, safest, and most secure manner possible. This wallet has a decentralized system, scalable architecture, and stable nature. This wallet supports the following blockchain networks: Tron, Binance, Ethereum and Polygon. The Funex Multi-crypto wallet enables users to conduct safe and speedy cryptographic transactions in a variety of cryptocurrencies. It is a crypto coin wallet that offers high-profile and premium solutions and services associated with cryptocurrencies. It did this by employing advanced technology and the latest technological tools in order to make using cryptocurrencies as simple as using traditional currencies. Using the Funex wallet, one is able to store a variety of crypto coins, including Bitcoin, Ethereum, Funex, and others.

Conclusion

If you’re interested in listing crypto coins or tokens, then you can go through the link. This wallet is considered to be the best secure wallet for Shiba Inu, Ethereum, Bitcoin, Funex etc.  If you have any questions and want to know more about it then contact us or visit our official website which is Funexcoin.com

There are several different cryptocurrencies in the market, ranging from Bitcoin and Ethereum to Dogecoin and Tether. If you are just starting out in the world of cryptocurrencies, it can be very confusing because there are so many different options. These are the top cryptocurrencies that have the potential to be profitable investments based on their market capitalization, which is the total value of all of the coins that are currently in circulation. In this article, we are going to explore which crypto has the potential to provide high ROI and which cryptocurrencies will be on top in the future.

What is cryptocurrency?

The word “crypto” refers to the cryptographic techniques that make it possible to create and process digital money. Alongside this essential “crypto” characteristic is a shared dedication to maintaining a decentralized structure. Cryptocurrencies are often developed by teams that incorporate methods for issuance (typically, but not always, through a process known as mining) and other controls.

Although cryptocurrencies are nearly always supposed to be independent of the control and manipulation of governments, this fundamental component of the business has come under investigation as it has increased in popularity along with cryptocurrencies.

Cryptocurrencies that will be on top in the future

Bitcoin

Bitcoin has become the most well-known and commonly utilized cryptocurrency, as well as the largest cryptocurrency in terms of market capitalization. Bitcoin is seen as a store of value and a medium of exchange, and it is frequently used for international transfers as well as payment for goods and services.

Before making any investment decisions in the cryptocurrency market, investors should undertake extensive study and due diligence. Having bitcoins can be a very good investment but you must keep in mind that they should be kept in a safe place is essential. That’s why the Funex wallet is a very good option to keep your bitcoins safe. It is one of the secure Bitcoin wallets. Read out to know the Bitcoin price prediction for 2023 that will acknowledge the price changes.

Funex

Funexcoin is a game changer in the cryptocurrency world. This adaptable and imaginative gaming token has a variety of applications that appeal to both gamers and individuals. Funexcoin is a top choice for long-term investment potential due to its exceptional efficiency, low supply, and strong demand. Funex also has a crypto wallet which is a top custodial wallet. Funex is a multi-crypto wallet in which users can store over 25 crypto coins and it supports multi-chain tokens. 

Users can use Funexcoin for a multitude of purposes, including payment for goods and services, remittance, and more, thanks to its highly efficient platform and multi-utility nature. It’s more than simply a gaming token; it’s a digital asset with the potential to change the world of cryptocurrencies. If you want to invest in Funexcoin, it is now available on numerous exchanges like Bitmart, Coinsbit, and others. Don’t pass up this fantastic opportunity!

Ethereum

Ethereum is one of the world’s most well-known and commonly used cryptocurrencies. Vitalik Buterin founded it in 2015 as a blockchain-based platform for developing decentralized applications and smart contracts. One of Ethereum’s important characteristics is its support for smart contracts, which are self-executing contracts that automate the process of verifying and enforcing an agreement’s terms. As a result, Ethereum is a popular choice among developers and organizations wishing to build decentralized applications for a variety of use cases, ranging from supply chain management to decentralized finance (DeFi) applications. Funex crypto wallet is the best and most secure wallet for Ethereum coins.

Doge

Dogecoin is a cryptocurrency that was developed in 2013 as a lighthearted joke based on the well-known “Doge” internet meme by software programmers Billy Markus and Jackson Palmer. Despite its humble beginnings as a joke, Dogecoin has grown to become one of the world’s most popular cryptocurrencies. Dogecoin, like Bitcoin and many other cryptocurrencies, is built on blockchain technology and runs on a decentralized network. Dogecoin is primarily used as a form of payment, and it has been accepted as a payment option by a number of retailers and businesses.

Shiba Inu

Shiba Inu (SHIB) is a cryptocurrency that debuted on the Ethereum network in August 2020 as an ERC-20 token. It was established by an unknown individual or group of individuals known as “Ryoshi” with the purpose of developing a community-driven project similar to Dogecoin’s popularity. The Shiba Inu token has acquired popularity due to its affiliation with the popular Dogecoin coin and its meme-inspired branding. It has also gained popularity due to its inexpensive cost and potential for huge returns.

Conclusion

Investing in a crypto coin is a smart decision an individual can make. Cryptocurrencies are a unique asset class that can diversify an investment portfolio while also protecting against inflation and economic variability. Whether you have Bitcoins, Ethereum, Funex, Doge, or any other cryptocurrencies you can safely store it in Funex’s centralized wallet. 

Each and every day, technology makes enormous amounts of advancement. Cryptocurrency is an outcome of recent technological developments and is sometimes referred to as the currency of the future. In recent years, cryptocurrencies have attracted a significant amount of attention and appeal, primarily as a result of the introduction of Bitcoin in 2009. Through this blog, we are going to explore, whether is cryptocurrency really the future of money. Can we keep our cryptocurrency by keeping it in a crypto wallet?

Understanding Traditional Money Systems

Money is a transferable asset that is used for the purpose of facilitating the exchange of value. It plays the role of a medium of transaction between different people and different entities. It is also a unit of account that can be used to measure the value of other items, as well as a store of value.

1. Fiat Currency Explained

Fiat currency is a type of currency that has no intrinsic value and is not backed by a physical commodity like gold or silver. Instead, its value is derived from the trust and confidence of the people who use it and the authority of the government that issues it.

2. Centralized Banking Systems

Centralized banking systems refer to financial systems where a central authority, typically a country’s central bank, has significant control over the issuance, regulation, and monitoring of the country’s currency and monetary policy. These systems are common in most countries and are integral to the management of the economy.

3. Limitations and Challenges

Inflation Risk: Fiat currencies can be susceptible to inflation due to excessive money supply growth, potentially eroding purchasing power and leading to higher prices for goods and services.

Lack of Intrinsic Value: Since fiat money isn’t backed by a physical commodity, some people may question its long-term stability and value, relying solely on trust in the issuing government.

Centralization Risks: Centralized banking systems concentrate power in the hands of a few decision-makers, and if mismanaged, it can lead to financial instability and crises.

Dependency on Institutions: The stability of fiat currency relies on the proper functioning of central banks and financial institutions. Any systemic failure can have severe consequences.

Alternative Currencies: In recent years, digital currencies like Bitcoin have emerged, challenging the dominance of traditional fiat currencies and raising questions about the future of money systems.

Economic and Political Influences: Centralized banking systems may face pressures from governments or interest groups, potentially impacting decision-making processes and monetary policies.

Unveiling the Rise of Cryptocurrency

What is Cryptocurrency?

Cryptocurrency is a digital payment system that is not controlled by a central bank and doesn’t need them to verify transactions. Users can use this decentralized, peer-to-peer method to send and receive money from anywhere in the world. Payments made with cryptocurrencies don’t exist as real money that can be moved from place to place and swapped with other people in the real world. Instead, they only exist as digital records in an online database that records specific transactions.

When you send or receive cryptocurrency, the transaction is added to a public ledger where everyone can see it. Wallets that are digital or virtual are used to store crypto coins. The word “crypto” comes from the fact that crypt uses encryption to make sure that transactions are real. As a result, storing crypto data and sending it between wallets and to public ledgers both need a high level of technical expertise. The main reason for encryption is to keep things safe and secure.

Decentralization and Blockchain Technology

Decentralization is the potential future of the financial sector, at least for investors in cryptocurrencies around the world. There is no doubt that decentralized organizational management has many benefits over centralized organizational control; in fact, this is one of the primary reasons why cryptocurrency has become so popular in the initial time.
The blockchain is a technology that is used to validate transactions and retain a record of those transactions. Because of this technology, cryptocurrencies have a decentralized structure that makes them possible.

Advantages of Cryptocurrency

Transactional Speed

It is quite simple to send money in the form of cryptocurrencies because there is no need to exchange them. The transfer of cryptocurrencies can be completed in a very short amount of time. It only takes a few seconds to complete a transfer of any amount of money to any part of the world, no matter where you are. 

Cost-Effective Transactions

The global transfer of funds is made easier by cryptocurrencies. With the help of cryptocurrencies, the cost of conducting transactions can be very low or even completely eliminated. It makes no difference because there won’t be a need for third parties or central authorities to verify the transactions anymore.

Diversity

Profits can be made through investments in cryptocurrencies like bitcoins and ethereum. Over the course of the last ten years, there has been a tremendous expansion in the market. Although there is just a short history of the price activity of cryptocurrency markets, it would appear that these markets are not tied to any other markets, such as equities or bonds. 

Safe And Secure

No one will be able to access your funds unless they have access to the private key linked to your cryptocurrency wallet. In addition, the transactions are protected by the blockchain system, which, when combined with the dispersed network of systems that validate the transactions, results in an increased level of security.

Easy Currency Exchanges

Cryptocurrencies can be purchased easily with fiat currencies like the U.S. dollar, Indian rupee or the European euro. Investors can purchase cryptocurrency using currencies like the U.S. dollar, Indian rupee or European euro. Investors are able to trade in cryptocurrencies and convert currencies while spending the lowest possible transaction fees across a variety of wallets because of the development of cryptocurrency exchanges and wallets.

Also Read: Bullish vs Bearish Market: What are the Differences?

Cryptocurrency in Practice

Cryptocurrency in practice refers to the real-world use and application of digital currencies, often built on blockchain technology. Cryptocurrency adoption is still evolving, and the technology faces both challenges and opportunities in the broader financial landscape. As the cryptocurrency market continues to mature, its practical applications are likely to expand, driven by advancements in technology and regulatory developments.

Popular Cryptocurrencies

Cryptocurrency is popular in the financial sector since its initial stage and evolving every day. Cryptocurrency brought advanced technology to make financial transactions easy, quick ad secure. Bitcoin is the first crypto coin which is launched a decade ago, afterwards many cryptocurrencies entered the market. Some of the popular cryptocurrencies are the following:

Bitcoin: Bitcoin is the most widely used cryptocurrency, and it was the first cryptocurrency ever developed by Satoshi Nakamoto. The fact that it is based on blockchain technology gives it a significant advantage over other cryptocurrencies in terms of safety. At the moment, Bitcoin is the most valued cryptocurrency, and the process of mining is what is used for validating transactions made using Bitcoin.

Ethereum: Ethereum is one of the most widely used platforms for cryptocurrencies. After Bitcoin, it is the cryptocurrency that’s name is most likely to be recognized by people across the globe. It is the coin that was designed to be used on the Ethereum network. The network enables you to utilize ether (the currency) to carry out a variety of operations, but the smart contract feature of Ethereum is a major contributor to the success of the cryptocurrency as a whole. This post is sponsored by our partners Wigs

Binance: Binance coin is a type of cryptocurrency that was created by the Binance exchange. It is denoted by the symbol BNB when it is traded. This coin functions on the Ethereum blockchain using the standard ERC 20 protocol, and there will never be more than 200 million BNB tokens in circulation.

Cardano: Cardano is currently ranked among the most popular cryptocurrencies. It is intended to be a blockchain platform that is adaptable, sustainable, and scalable for the execution of smart contracts. This will make it possible to construct a broad variety of decentralized financial applications, new cryptocurrency games, and other types of applications.

Solana: Solana (SOL) is a digital currency that was supposed to function similarly to Ethereum while also improving the way it works. Anatoly Yakovenko, a software developer, came up with the idea for the company that later became known as Solana. When compared to other blockchains, such as Ethereum, the number of transactions that can be processed by Solana is substantially higher while the fees associated with such transactions are significantly lower.

Also Check: Top 10 Best Crypto Wallets in India for 2023

Use Cases and Real-World Examples

• Digital payments: Cryptocurrencies are used for everyday transactions, both online and in physical stores. As time goes on, a greater number of businesses are accepting cryptocurrency as a form of payment.

• Gaming: Many blockchain-based gaming platforms are developed by renowned companies and they accept cryptocurrencies by players to play games and buy weapons.

• Decentralized finance: DeFi platforms use smart contracts to offer lending, borrowing, and yield farming services. Users can earn interest on their cryptocurrencies or borrow funds without the need for traditional financial institutions.

• Non-Fungible Tokens (NFTs): NFTs have gained popularity in the art, gaming, and entertainment industries. They can’t be sold or exchanged the same way other cryptographic assets can.

• Cross-Border Trade: Enterprises can avoid the complexity and delays of traditional banking systems by utilizing cryptocurrencies as a means of facilitation.

Adoption and Market Trends

The cryptocurrency market has witnessed growing interest from institutional investors, with major companies and asset managers allocating funds to cryptocurrencies like Bitcoin as a hedge against inflation and economic uncertainty. Several countries have explored the possibility of launching their own digital currencies, known as CBDCs, as a way to modernize payment systems and maintain control over their monetary policies.

The concept of tokenizing real-world assets, such as real estate or artworks, using blockchain technology has gained traction, providing fractional ownership and liquidity to traditionally illiquid assets. Some financial institutions have started integrating cryptocurrencies into their services, offering custodial solutions, cryptocurrency trading, and investment products to their clients.

Potential Impacts of Cryptocurrency

The impacts of cryptocurrencies are still unfolding, and the technology’s long-term effects on financial systems and society remain uncertain. While cryptocurrencies offer exciting possibilities, they also come with challenges that require careful consideration and balanced regulation to harness their potential benefits while mitigating risks.

1. Disrupting Traditional Financial Institutions

Cryptocurrencies operate on decentralized blockchain networks, removing the need for intermediaries like banks for financial transactions. This disintermediation could potentially challenge the dominance of traditional financial institutions, leading to reduced fees and increased efficiency in the financial system.

Cryptocurrencies enable cross-border transactions without the need for currency conversions and intermediaries. This could reduce the reliance on traditional banking systems for international remittances and trade, impacting the revenue streams of banks and payment processors.

2. Financial Inclusion and Empowerment

The world’s unbanked and underbanked populations could potentially gain access to banking services through cryptocurrencies. With just an internet connection, individuals can access and use cryptocurrencies without relying on traditional banking infrastructure.

Cryptocurrencies enable low-cost micropayments, making it economically viable to transfer small amounts of money. This can empower content creators, freelancers, and entrepreneurs who may have been underserved by traditional payment systems.

3. Economic and Societal Implications

The high volatility of cryptocurrencies can lead to speculative bubbles and price fluctuations, potentially impacting investor confidence and economic stability. As the cryptocurrency market operates independently of traditional financial systems, its inherent risks may not be well understood or adequately regulated, potentially exposing investors to fraud and scams.

Early adopters and holders of cryptocurrencies have seen significant wealth appreciation. This has the potential to create wealth disparities, as those who acquired cryptocurrencies early may benefit more than late adopters. The development of cryptocurrencies and blockchain technology has led to advancements in computer science, cryptography, and distributed systems, potentially driving innovation in other industries.

Learn More: About Top 10 Stablecoins to Buy in 2023

Criticisms and Challenges

1. Volatility and Market Manipulation

Cryptocurrencies are known for their extreme price fluctuations, with values sometimes experiencing significant swings in short periods. This volatility can make them risky assets for both investors and users in everyday transactions. Due to its small size and lack of regulation, the cryptocurrency market is susceptible to market manipulation. Whales (individuals or entities holding large amounts of a particular cryptocurrency) can influence prices by executing large trades, leading to price manipulation and potentially harming retail investors.

2. Regulatory Concerns

The evolving and global nature of cryptocurrencies has created regulatory challenges for governments worldwide. The lack of a consistent regulatory framework across jurisdictions can lead to uncertainty and hinder mainstream adoption. Cryptocurrencies have been associated with money laundering, tax evasion, and other illicit activities due to the pseudonymous nature of blockchain transactions. Regulators are concerned about these risks and may implement stringent anti-money laundering (AML) and know-your-customer (KYC) measures.

3. Security and Privacy Risks

Cryptocurrency exchanges and wallets are susceptible to cyberattacks, leading to the theft of funds. Poorly secured platforms have been targeted by hackers, resulting in significant losses for users. The irreversible nature of most cryptocurrency transactions means that if funds are sent to the wrong address or in the case of a scam, it is challenging to recover the lost funds. While blockchain transactions are transparent, they are also pseudonymous, meaning users’ identities are not directly tied to their public addresses.

Is crypto really the future of money?

When considering whether or not cryptocurrencies represent the future of money, here are a few things to keep in mind:

1. Decentralization and Security: Blockchain technology enables a decentralized and secure method of recording transactions. Blockchain is the fundamental technology that powers cryptocurrencies. The distributed ledger architecture that blockchain utilizes removes the need for intermediaries such as banks, which has the potential to both lower costs and increase security.

2. Financial Inclusion: Cryptocurrencies have the potential to expand financial inclusion and make it possible for individuals who do not have access to conventional banking services to take part in the economy of the entire world. Anyone may build a cryptocurrency wallet and transact on a global scale if they have a smartphone and access to the internet.

3. Programmable Money: Some cryptocurrencies, like Ethereum, implement a concept known as smart contracts. This facilitates the development of decentralized apps (DApps) as well as programmable money. This paves the way for the development of novel financial applications, the automation of financial transactions, and the elimination of the need for intermediaries in a variety of industries.

4. Volatility and Adoption Challenges: The substantial amount of volatility that cryptocurrencies have historically displayed can make it difficult to use them as a reliable medium of trade. In addition, the widespread use of cryptocurrencies is hampered by problems such as scalability, regulatory obstacles, and public acceptance. For cryptocurrency to enter the mainstream, it is necessary that these difficulties be overcome.

5. Central Bank Digital Currencies (CBDCs): CBDCs, or central bank digital currencies, are a concept that is currently being investigated by a number of governments and central banks. CBDCs are digital representations of national currencies. CBDCs have the potential to combine the advantages of cryptocurrencies with the reliability of regular fiat currencies as well as the regulatory control that comes with using fiat currencies.

It is important to keep in mind that despite the rise in popularity of cryptocurrencies, traditional financial institutions continue to have the majority of market share in terms of worldwide transactions. Traditional fiat currencies, digital payment systems, and other forms of cryptocurrency may all coexist in the monetary system of the future. To keep fiat coins one should have a wallet likewise to cryptocurrency one must have a crypto wallet.

How do Crypto Wallets Keep Your Crypto Safe?

The use of a crypto wallet is essential for cryptocurrency owners since it protects their assets from being stolen and against online scams. There are several different cryptocurrency wallets now on the market, and they can be classified either as decentralized wallets or centralized wallets. Centralized wallets offer the highest level of security available, making them the greatest option for crypto holders, especially those just beginning in the market.

One of the most well-known custodial wallets, Funex has an extensive and active user base. This wallet is loaded with a wide variety of useful functions. This wallet cannot be matched by any other option in terms of its level of safety. It is one of the most secure crypto wallets because of multi-chain support.

This wallet is referred to as a multi-crypto wallet since it allows users to store many cryptocurrencies at the same time. One has the ability to store digital currencies with support for many blockchains. In addition to that, this wallet also features a staking program that gives users the opportunity to earn rewards by referring their friends to the wallet.

Summary

Cryptocurrency has seen remarkable growth and widespread interest, but it remains uncertain whether it will entirely replace traditional money systems. The future of money might encompass a hybrid approach, with both cryptocurrencies and fiat currencies coexisting in parallel. Governments and financial institutions are exploring the concept of central bank digital currencies (CBDCs), aiming to combine the benefits of blockchain technology with the stability and oversight of traditional monetary systems.

Ultimately, cryptocurrency becomes the dominant form of money depending on various factors, including technological advancements, regulatory developments, market acceptance, and societal preferences. As the cryptocurrency ecosystem evolves and matures, its role in shaping the future of money will continue to be a subject of considerable interest and scrutiny.

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