How to buy Bitcoin in Dubai

Dubai is a magnificent city to live and work in. But how can someone buy Bitcoin in Dubai? Is it legal to buy Bitcoin in Dubai? Is Dubai crypto-friendly? 

Here’s a quick guide with the answers. The great news is that, yes, buying Bitcoin (BTC) in the United Arab Emirates is permitted, and the country is actually one of the most welcoming to cryptocurrency exchanges and investors.

Is Dubai crypto-friendly?

The thriving metropolis of Dubai in the UAE has long been deemed a crypto-friendly city. Some describe the UAE as the most crypto-friendly country.

What’s more, there is zero tax to pay on cryptocurrency trading in the UAE, as well as zero income or capital gains tax. This combination has made the Middle Eastern country massively attractive to cryptocurrency and blockchain companies and the users of these technologies. There are many UAE crypto traders and plenty of crypto investment options in the UAE.

But is it legal to buy Bitcoin in Dubai? Dubai and the UAE have some regulations on cryptocurrencies, including policies to protect investors. Cryptocurrencies are not licensed or recognized as legal tender; however, there are no laws against buying Bitcoin in the UAE or owning or trading Bitcoin or other crypto.

How to buy cryptocurrency in Dubai

Buying Bitcoin in Dubai and anywhere in the UAE is quite straightforward; it starts with choosing a crypto exchange, registering and creating an account, and then adding the funds needed to buy the cryptocurrency of choice.

Bitcoin is available on any exchange, and other leading cryptocurrencies are available on most major exchanges. Investors who plan to hold on to Bitcoin usually want to move their Bitcoin away from an exchange into a Bitcoin wallet or to more secure Bitcoin storage like a hardware wallet. Let’s look at the steps to buying Bitcoin in the United Arab Emirates:

1. Choose an exchange

The first priority when choosing an exchange is security; crypto buyers should always research the exchange and check online reviews, then review the coins, the exchange lists and the fees.

2. Register

Registering with an exchange starts with an email, a password and any other security authentication available. Cryptocurrency exchange users should always make full use of any additional security options. New exchange users will usually need to provide the exchange with an image of a piece of photo ID to complete its Know Your Customer (KYC) checks.

3. Fund and buy

Once an account has been created, funds can be added from fiat accounts. After that, it’s possible to buy BTC with UAE dirhams easily this way or to select another trading pair.

Which crypto exchanges operate in Dubai and the UAE?

The intriguing thing is that there are many leading exchanges that operate in the UAE; investors can pick from the most well-known, the best-reviewed, those thought of as the safest, and those with the highest availability of leading cryptocurrencies.

Some of the crypto exchanges and Bitcoin trading platforms in Dubai and the UAE are eToro, OKX, HTX (formerly Huobi) and Binance. Bitcoin brokers in the UAE, such as Rain, OKX, Uphold, Bybit and Binance, are regulated by the UAE Financial Services Regulatory Authority (FSRA) or the Abu Dhabi Global Market (ADGM).

How to choose Bitcoin wallets in Dubai

Just like Bitcoin trading platforms in Dubai, there are lots of options for Bitcoin wallets in Dubai to store crypto safely. The first step is to choose a Bitcoin wallet suitable for investor plans or behavior.

Online wallets or wallet applications aren’t as safe as hardware wallets, but they can be more suitable for investors planning to move their cryptocurrency holdings or use them on a regular basis. Hot wallets to choose from include Trust Wallet or Electrum.

More valuable Bitcoin holdings or funds left idle for some time are best stored in safer hardware wallets, such as Trezor or Ledger Nano.

Can you buy Bitcoin in Dubai with cash?

It’s possible to buy Bitcoin in Dubai with cash straight from an account or by using a credit card. After an account has been set up with an exchange, the next step is to add fiat money funds to the account and then go on to purchase Bitcoin.

Does Dubai have Bitcoin ATMs?

The UAE is so welcoming to crypto that it is one of the countries to have Bitcoin ATMs, and Dubai’s first Bitcoin ATM was installed at the five-star Rixos Premium Dubai Hotel in 2019. At the kiosk, visitors can insert cash and buy Bitcoin instantly.

Is buying Bitcoin via P2P in Dubai common?

Peer-to-peer (P2P) cryptocurrency exchanges allow users to trade Bitcoin directly with one another, unlike centralized or decentralized exchanges. On a P2P exchange, it’s possible to look at a seller’s list of assets for sale and choose accordingly. Buyers and sellers agree on the price of the cryptocurrency for sale before the sale is made.

P2P exchanges can be more common in countries with greater restrictions on cryptocurrency exchanges; in Dubai, that’s not the case. The major exchanges operating in Dubai often have P2P functionality as well as standard trading options, which provides the best of both worlds. The exchanges offering P2P trading in Dubai include Binance, Paxful, OKX, HTX, Bybit and KuCoin.

Are there crypto-friendly banks in the UAE?

It is interesting to know how banks in Dubai and the UAE view cryptocurrencies and crypto users. The UAE doesn’t fail the crypto entrepreneur, and there are a number of crypto-friendly banks in the UAE that will allow crypto businesses to open and use fiat accounts.

First Abu Dhabi Bank (FAB) has no policies restricting its customers from buying and selling crypto. Although it doesn’t offer crypto trading, it’s possible to link an FAB account with a crypto exchange to fund Bitcoin purchases. FAB also has future plans to leverage Web3 and digital assets for its users.

Exercise caution while dealing with cryptocurrencies

It is fortunate for Dubai residents to have access to a vibrant financial environment that enables them to engage with the world of cryptocurrencies.

However, it is important to remember that the value of Bitcoin and many other cryptocurrencies is extremely volatile and subject to significant price swings in either direction. Therefore, before entering the cryptocurrency market, careful research and knowledge of the risks involved are crucial.

How to handle crypto trading gains and losses on your balance sheet

Currently, no accounting standards are dedicated to crypto assets, so broader guidelines per the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Practice (GAAP) are applied to cryptocurrency accounting.

Balance sheets are among the three primary financial statements that businesses need, alongside income and cash flow statements. Whereas income and cash flow statements show a business’s economic activity over a certain period, a balance sheet shows how many assets it has, and whether it has equity and any debt.

Balance sheets are also referred to as statements of financial position because they provide a complete picture of a business’s financial situation. It also includes every journal entry since the business started. For this reason, crypto transactions ought to be included, especially those that impact a business’s financial situation.

Why a balance sheet is needed

A balance sheet provides valuable insights into a business’s financial health and offers key benefits. Since balance sheets are typically prepared at the end of a specific reporting period, they allow one to compare business performance year-over-year. As such, balance sheets provide a measurable way to track the growth and progress of one’s business.

Balance sheets also allow one to calculate key financial ratios, such as the debt-to-equity ratio, which shows whether or not a business can pay off its debts with its equity. It also includes information necessary to compute other important ratios, such as current assets vs. current liabilities, showing whether a business can pay off its debts in 12 months.

Lastly, balance sheets allow one to reasonably evaluate the business. This can be helpful when looking for investors (to prove that they will enjoy profitable returns) or when looking to sell the business.

How do you treat crypto on a balance sheet?

One of the most common questions when preparing a balance sheet is, “Where does crypto go on the balance sheet?” As mentioned previously, both the IFRS and GAAP do not currently have any specific references with regard to crypto bookkeeping.

However, since cryptocurrencies qualify as assets, the core principles of accounting for assets apply when preparing a balance sheet that includes crypto transactions. Here are some helpful pointers:

When purchasing cryptocurrency with fiat money

Cryptocurrency trading activities should be recorded similarly to those of stock trading activities. If one buys Bitcoin (BTC) or Ether (ETH), these digital assets can be added to the balance sheet at their fair market value on the date the assets were purchased.

This will reflect as a debit on one’s assets account. Additionally, since the cryptocurrency was purchased with fiat currency, the cash account should also reflect the credit for the purchase price of the acquired crypto assets.

When selling cryptocurrency for fiat money

When selling cryptocurrency, however, the assets account will be credited, and the cash account will be debited with the amount of fiat received upon selling the cryptocurrency.

Suppose there is a significant difference between the sale amount of the cryptocurrency vs. the amount paid for it (original purchase price). In that case, a capital gains account should also be credited.

Recording unrealized losses

Following GAAP’s accounting rules on intangible assets, impairment losses can’t be reversed even if the asset recovers from previous price levels. If a business purchases BTC with a fair value of $500,000, which then drops by $100,000, then the company has to recognize that loss and reduce its cryptocurrency holdings to reflect the decrease in value.

This holds even if the fair value later increases to $600,000. The loss can’t be reversed or increased in value on the balance sheet. Per GAAP guidelines, the impaired value (in this scenario) will remain at $400,000.

Recording crypto mining income

Businesses that engage in cryptocurrency mining must record cryptocurrency profits in their balance sheet like other income-generating activities. This means their mining income account will be credited. Then, the newly generated digital asset will need to be debited onto their books at the asset’s fair market value.

Expenses incurred during mining operations will also need to be accounted for. For instance, if cash is spent to pay for mining expenses, then the cash account must be credited. The corresponding asset account will then be debited (buying mining equipment that has to be capitalized and amortized) or otherwise recorded as an expense for things such as supplies and utilities.

Using cryptocurrency to pay suppliers

When using cryptocurrency to pay a supplier or vendor, it qualifies as a disposal and should thus be recorded in the same way as selling the cryptocurrency (i.e., assets account credited). A capital gain will, therefore, be recognized for the difference between the expense and the book value of the asset.

For example, if one has 100 BTC, equivalent to $300,000, and the BTC has since increased in fair value to $400,000 — but then pay the certified public accountant firm who did the audit $400,000 worth of BTC instead of cash — the amount will need to be debited to their professional services expense account. Meanwhile, the BTC asset account will need to be credited $300,000. The remaining $100,000 balance will then be credited to a capital gains account.

Taxing cryptocurrencies

Tax compliance is an essential part of accounting for cryptocurrencies. As mentioned earlier, when cryptocurrencies are sold, it is considered capital disposal as per the current guidelines on assets.

Capital gains and losses

Whenever the profits from capital disposal are higher than the price the cryptocurrency was purchased at, cryptocurrency incurs a capital gains tax. However, when proceeds are lower than the purchase price, it incurs a capital loss. Capital losses may then be used to balance out capital gains on other assets or carried over to the next financial year. In any case, it can reduce one’s tax liability.

Income tax liability

When someone is paid in cryptocurrencies such as BTC or ETH, they will be liable for income tax. The market value of the cryptocurrency at the time of the transaction should be used to account for such under one’s trading profits. Companies also need to pay corporation tax on said profits.

Related: Cryptocurrency tax guide: A beginner’s guide to filing crypto taxes

When financial statements and reporting for tax purposes have discrepancies

Taxation and accounting are intrinsically linked, but the rules that apply to both do not align under all circumstances. For instance, unrealized cryptocurrency losses will require one to keep journal entries under both IFRS and GAAP rules, especially concerning impairment events during which there wouldn’t be a deduction on taxes for such losses.

Cryptocurrency taxes can be complicated, but financial reporting for accounting purposes can be even more mind-boggling in several instances. To avoid confusion, cryptocurrency transaction recordings are often split into two groups based on cryptocurrency taxes: Transactions that generate income taxes and transactions that generate capital gains taxes.

Related: How to track and report crypto transactions for tax purposes

Taxable events under GAAP and IFRS

Taxable events that cause businesses to owe income taxes on an asset’s fair market value under GAAP and IFRS are as follows:

For this reason, all the above activities should be recorded as gross revenue for the year. These will be taxable as ordinary business income, but all ordinary and necessary expenses resulting from these activities will be deductible.

As for events that trigger capital gains or losses, all transactions that fall under the category of capital disposal of cryptocurrency for proceeds (and that differ from their cost basis) are considered taxable:

  • Selling cryptocurrency
  • Exchanging cryptocurrency
  • Using cryptocurrency to pay a supplier or vendor

Non-taxable events under GAAP and IFRS

Cryptocurrency transactions that are non-taxable events are those that do not contribute to the tax liability of one’s business. These include:

The basis of prudent financial management is accurate accounting for gains and losses. It plays a crucial role in ensuring that financial reporting is transparent and trustworthy. It is essential for stakeholders like investors, creditors and regulatory authorities to evaluate an entity’s performance and financial health.

Accordingly, careful accounting guarantees compliance with laws and gives people, companies and organizations the power to make tactical decisions that can result in sustainability and long-term success.

What is Feedzai, and how is it used to detect financial fraud?

Financial scams are rising, with losses amounting to $8.8 billion in 2022 alone. According to the United States Federal Trade Commission, losses from financial fraud have increased by 30% from 2021 to 2023. This paints a dire portrait of the dark underbelly of digital advancement, with scammers now leveraging generative artificial intelligence (AI) to craft increasingly complex and realistic scams.

Multiple reports suggest scammers can create chatbots that mimic human conversation, ask for personal financial details, create malware, write sophisticated phishing emails and even mimic human voices. The immediacy of instant payments via digital banking also presents an opportunity for fraudsters to deceive users into transferring money instantly, leaving defrauded users with little to no hope of getting their money back.

Risk management platforms like Feedzai are part of the ongoing fight against financial crime. Powered by machine learning and big data, platforms like these boast advanced technology and high-level security to combat sophisticated financial scams.

What is Feedzai, and how does it work?

Feedzai is a risk operations (RiskOps) platform that leverages machine learning technology and AI to provide retailers, banks and payment providers with fraud prevention solutions. The platform has a global reach and aims to protect people from the risks associated with e-commerce and banking.

Initially founded in Portugal in 2011, Feedzai is now based in California and offers services in 190 countries. Considered a market leader in its field, the company was originally developed by its founders, Nuno Sebastião, Paulo Marques and Pedro Bizarro, to offer operational intelligence and fraud detection solutions.

Today, Feedzai has evolved into a suite of AI-based solutions specifically targeted at detecting fraud and preventing financial crime. Feedzai’s main clients are established banks and financial institutions like Citibank, Standard Chartered and Lloyds Banking Group.

Feedzai, a RiskOps platform that uses machine learning

Feedzai is based on the concept of RiskOps, a practice that operationalizes risk through fair and customer-centric approaches. RiskOps also empowers financial institutions to detect suspicious behaviors, identify scammers and combat fraud.

RiskOps helps financial institutions manage identity, data and foster collaboration across various systems more efficiently — allowing institutions to provide their customers with superior and reliable services.

Technically, what RiskOps platforms like Feedzai do is provide financial institutions with a framework for more effective financial risk management. Standardizing the risk management and fraud prevention approach makes it easier to assess abstract and difficult-to-define concepts like risk. As such, these institutions can confidently measure and analyze risk and make smarter decisions based on these findings.

Feedzai’s platform uses machine learning to process events and transactions quickly while providing easily understandable results through an added human-readable semantic layer. Its learning model processes and transforms multiple data streams and insights from various sources to create highly detailed customer profiles, making identifying fraudulent activities and potential victims easier.

Feedzai minimizes the risk of fraud and money laundering for financial institutions by collecting data from various sources, such as cross-channel, cross-product and third-party data.

This helps to distinguish between authentic and fraudulent transactions, and it provides a comprehensive view of how each individual interacts with the bank. These profiles also make it easier to identify customers more likely to fall victim to scams — even before a scam targets them.

The platform detects fraud quickly and in real time for different payment types, such as cards, instant transfers, digital wallets, withdrawals and deposits. The solution also offers production-ready application programming interfaces (APIs) for various payments to give real-time transaction recommendations, such as whether to approve or decline them.

What is Feedzai used for?

There are several threats and weaknesses that Feedzai helps address:

Addressing the shortcomings of legacy solutions

Financial institutions often use several outdated point solutions that use rules-based approaches to detect fraud but do not specifically focus on scams. Traditional approaches have three main limitations. First, they are restricted to siloed channels, making them vulnerable to fraud schemes that spread across various banking products or payment platforms.

Second, legacy solutions detect fraud by analyzing either behavioral activity (like app and device usage patterns, malware incidence, biometrics and network activity) or financial activity (transactional data across banking platforms). However, their analysis does not consider both types of activity together, reducing the ability to quickly identify an ongoing scam.

Lastly, these fraud protection measures do not adapt quickly enough to counter new tactics used by scammers. Machine learning fills this gap by assimilating new data and providing real-time insights into customer behavior. Feedzai’s platform is designed to quickly detect financial fraud, money laundering and other illicit activities with AI-driven approaches tailored to different payment mechanisms’ nuances.

Combatting the creation of fake accounts to compound rewards

The rise of digital transactions, particularly for small but frequent purchases, has increased rewards for merchants and consumers. However, this growth also presents an opportunity for fraudsters to take advantage of the rewards system.

Fraudsters are taking advantage of the shift toward cashless transactions and increased gamification by creating fake accounts and moving the funds in circles to collect rewards.

Feedzai specializes in analyzing network transactions made by account holders to identify hidden fraudulent payment networks. This means they can detect fraudulent patterns that may not be immediately obvious.

Detecting SIM swaps

SIM swapping is a type of fraud where a perpetrator poses as the owner of a phone number and convinces a call center or branch employee to swap out the associated SIM card. This is done by providing the victim’s personal data to the carrier.

Fraudsters acquire data through hacks and data breaches, or they exploit information that users have publicly shared on social media. They use this information to deceive carriers into permitting them to replace the SIM card linked to a phone number with a SIM card they possess. By doing this, all incoming calls and text messages are re-directed to the fraudster.

Feedzai helps combat this by analyzing transactional data, which can be used to detect a SIM swap. For instance, when multiple transactions are attempted from different devices in quick succession, Feedzai’s algorithms will flag it as suspicious behavior and alert the financial institution of a potential scam.

What are the key features of Feedzai?

Feedzai has added new ScamProtect features to its RiskOps approach, which aims to help improve the platform’s ability to detect and prevent scams before they harm customers. Among the platform’s key features for fraud prevention are:

Comprehensive RiskOps architecture

Feedzai operates in real time and offers a singular centralized location for data ingestion and interpretation. Its comprehensive architecture provides institutions with a centralized hub to detect emerging fraud threats, identify new business requirements, and analytics on user experience and operational performance. By using Feedzai, banks can anticipate where their focus should be ahead of trends.

Early intervention and education

Feedzai’s early detection capabilities enable banks to identify digital signals such as behavior biometrics and other non-transactional patterns that may indicate a potential scam victim. This can help the banks intervene and educate customers earlier in the risk lifecycle before they make a payment.

To navigate the complexity of scam fraud, alerts can record detailed explanations and specific indicators. This information can then guide agents to have more effective conversations with customers.

Human-centered AI

Technology sometimes leads to added roadblocks for customers as they are viewed as data points. This can result in unfair classification into groups and unnecessary difficulties for bank customers (canceled transactions, incessant calls to verify purchases they make, etc.).

Feedzai uses multidimensional data that prioritizes customers through AI to address this issue. By creating hyper-accurate risk profiles based on individual behaviors, banks can identify changes and prevent financial crime with greater ease — while keeping customers satisfied.

Inbound payment monitoring

To successfully scam someone, a scammer needs to send the money to an account they control. However, with Feedzai, banks can now monitor both incoming and outgoing payments, giving them more chances to prevent a scam from taking place.

Triage behavior alerts

The platform’s constant surveillance of each customer builds intelligence to identify fraudulent behavior quickly. Feedzai Case Manager then allows key persons to instantly take action on alerts, automate processes and organize team workloads.

The platform can direct specific alerts to agent groups based on their training through role and queue management. Additionally, the platform includes dashboards and reporting that categorize fraud types, allowing for easier tracking of detection and alert management.


Feedzai can customize and categorize rules to incorporate particular clauses related to scams, which can be modified in response to changes in fraudulent schemes. Additionally, the platform can adopt a regional approach by using parameters such as bank codes, states or product types, allowing institutions to develop tailored strategies when necessary.

The future of AI-powered risk operations

Risk operations enabled by AI are expected to experience transformational growth in the future. Risk assessment, detection and mitigation across sectors will be revolutionized by cutting-edge machine learning algorithms and predictive analytics.

Rapid analysis of large data sets by AI will reveal complex patterns and anomalies, enabling proactive risk management. Response agility will be improved, reducing vulnerabilities, using real-time monitoring and adaptive algorithms. Sentiment analysis and natural language processing will improve knowledge of risk, including social and reputational factors.

Furthermore, collaborative AI-human workflows will optimize decision-making, and AI’s self-learning skills will enable it to continuously adapt to evolving risks. Ultimately, AI-powered risk operations will usher in an era of precision, efficiency and resilience, mitigating threats and fostering safer, more secure environments.

What is a token maker, and how does it work?

A token maker or token generator tool is a type of software used to create cryptocurrency tokens.

Tokens represent various assets, including digital currencies, virtual goods, loyalty points and even real-world assets, such as real estate or artwork. Tokens may also be created to grant access to a decentralized application (DApp) or deploy token smart contracts.

So, what is a token maker? Technically, token makers take the tedious task of coding out of the mix — virtually allowing anyone to create their own token and launch a new cryptocurrency.

Not so long ago, cryptocurrency token development was a singularly complex task, and only advanced blockchain developers with strong blockchain programming skills could mint digital coins. 

As the technology evolved, however, no-code tokenization platforms like TokenMint and CoinTool developed innovative platforms that equipped virtually anyone with an aptitude for cryptocurrencies to create their own tokens.

Depending on the platform, token generators can create fungible or nonfungible tokens (NFTs) in accordance with specific token standards (like ERC-20 and BRC-20). Aside from using automation to create and manage tokens, token creators also allow one to control certain parameters, such as token validity. Tokens may also be revoked if necessary.

To ensure that the generated tokens are secure and, therefore, truly random and unpredictable, these tools usually introduce an entropy source when generating tokens. Entropy refers to the amount of uncertainty, measured in “bits,” that a malicious actor or attacker will have to face in order to determine the value of encrypted information. 

An entropy source, in a nutshell, is an input device on a computer that supplies random bits, raising the difficulty level that a possible attacker has to deal with when trying to access unauthorized information.

How to track and report crypto transactions for tax purposes

As cryptocurrencies and blockchain assets continue to grow in popularity and mainstream adoption, the United States Internal Revenue Service has taken an increasing interest in their taxation. 

In the U.S., cryptocurrency is subject to crypto tax and is classified as transactions instead of property or assets. Needless to say, failure to accurately track and report these transactions can result in penalties and fines.

Here is a comprehensive crypto tax guide for tracking and reporting crypto transactions for tax purposes in the United States.

How cryptocurrency is taxed in the U.S.

In the U.S., if you invest in crypto assets, such as nonfungible tokens (NFTs), and transact further for gains, you must be ready for crypto taxation.

Note that buying crypto alone — or its rise or fall in value while it is in your portfolio — isn’t taxable. Taxes are due when you sell, invest or dispose of the asset in any way for gains.

Cryptocurrency is subject to taxation in two ways: capital gains tax and income tax.

Capital gains tax

This applies to profits earned from the sale of an asset that was purchased at a lower price. Any gains realized from selling or trading a digital asset for a higher price than purchased are subject to capital gains tax.

If crypto assets were held for less than a year, it is considered a short-term gain. If it was held for more than a year, it is regarded as a long-term gain.

Capital gains events include selling cryptocurrency for fiat currency and sending cryptocurrency (over $15,000) as a gift.

Additionally, purchasing goods and services with cryptocurrency is also considered a capital gains taxable event. Trading or swapping one digital asset for another is also considered a capital gains event. This includes purchasing NFTs with cryptocurrency.

As such, it is crucial to accurately track all crypto transactions for tax purposes. That said, declaring your capital losses can offset capital gains tax.

Related: ‘Biggest mistake’ is not using tax loss harvesting: Koinly head of tax

Income tax

Income tax on cryptocurrency transactions applies to earnings from the mining and staking of tokens. These include receiving cryptocurrency from an airdrop or any crypto interest earnings from decentralized finance (DeFi) lending.

Also, receiving cryptocurrency as a means of payment for labor is also considered an income tax event.

Long-term cryptocurrency tax rates

The IRS’ long-term cryptocurrency tax rates will apply to gains on cryptocurrencies that have been held for over a year.

For single individuals, no tax would be levied on crypto gains of up to $44,625. For individuals filing as heads of household or married people filing jointly, the rates range from 0% to 20% based on income tax brackets.

See the table below for more details:

Short-term cryptocurrency tax rates

For short-term crypto gains — i.e., gains on cryptocurrencies held for 365 days or less — the tax rates will be calculated as ordinary income tax rates.

As shown in the table below, they range from 10% to 37% based on income brackets for single filers, married couples filing jointly, and heads of household.

When is cryptocurrency not taxed?

Some cryptocurrency transactions that are not subject to either capital gains or income tax:

  • Purchasing cryptocurrency with fiat currency
  • Holding cryptocurrencies without selling them
  • Moving cryptocurrency between your own cryptocurrency wallets
  • Gifting cryptocurrency amounting to less than $15,000
  • Donating cryptocurrency to charities (in fact, this may be tax deductible)
  • Creating an NFT (unless it is sold).

How to track crypto transactions

It is essential to accurately track and report all cryptocurrency transactions and consult a tax professional to meet all obligations. For some, it may just be a matter of screenshotting the few crypto transactions they’ve made all year. For others, recording crypto transactions across all Web3 ecosystems can be an arduous affair.

Several purpose-built crypto tax software solutions are available for tracking and generating reports for cryptocurrency transactions. Popular options include Koinly, CoinLedger and Accointing.

If you prefer to do it all yourself, here’s a step-by-step guide to tracking and reporting crypto transactions:

  • Identify and organize all of your cryptocurrency transactions, including trades, purchases and sales. Make a list of the type of cryptocurrency or asset, the date of the transaction, the amount and the value at the time of the transaction. It’s also a good practice to note the relevant wallet addresses.
  • Calculate the cost basis for each transaction, which includes the purchase price, fees and any other costs incurred.
  • Determine the gain or loss on each transaction, which is the difference between the cost basis and the fair market value of the cryptocurrency at the time of the sale or trade.
  • Separate your short-term and long-term transactions based on whether you’ve held the crypto asset in question for less than a year (short-term) or longer than a year (long-term).

By keeping accurate records and staying informed on the latest tax guidelines, you can easily navigate the tax implications of your cryptocurrency investments. While there are still many “undefined scenarios” as it pertains to taxing crypto, the IRS is continually working to cover them.

Related: Arizona governor vetoes bill targeting taxes on blockchain node hosts

Reporting crypto holdings on your taxes

After accurately tracking your crypto transactions, you must send them all to the IRS for tax purposes.

Reporting capital gains and losses

The crypto tax Form 8949 is used to report the sales and disposals of capital assets, including cryptocurrencies. It consists of two parts: Part I for short-term disposals and Part II for long-term disposals.

You need to check the relevant box at the top of the sheet based on whether your transaction was reported on Form 1099. Crypto tax Form 1099 B — supposed to be issued by exchanges — is used to report various types of income received throughout the year, including income from stock investments and cryptocurrencies.

However, as most exchanges do not issue Form 1099-B for cryptocurrency transactions, you will likely need to select option C (on Form 8949), which applies to short-term transactions that were not previously reported.

To fill in the details on Form 8949, you’ll need to provide the following information:

  • A description of the crypto asset sold
  • The date you originally acquired it
  • The date you sold or disposed of it
  • The fair market value
  • The cost basis
  • The gain or loss.

Each of these pertains to each column in Form 8949 (as shown below):

Once Form 8949 is filled out, you must take the total gain (or loss) and mention the same on Schedule D of Form 1040.

Reporting crypto income

The most common form for individual income tax returns in the United States is Form 1040. You must report all crypto income on your 1040, along with capital gains or losses from crypto transactions.

Form 1040 has a crypto question: ‍“At any time during 2022, did you: (a) receive crypto as a reward, award, or compensation; or (b) sell, exchange, gift, or otherwise dispose of a digital asset?” Withholding information or any form of dishonesty constitutes tax fraud.

Earning crypto as a business entity via payments for labor, running a mining income operation, or tapping into staking income are treated as self-employment. They must be reported in Schedule C of Form 1040.

When it comes to reporting crypto income from airdrops, forks or other sources, such as wages and hobby income, it is usually recorded as “other income” on Schedule 1 of Form 1040.

One may consult a tax professional for guidance on filing your cryptocurrency taxes accurately and reporting them correctly on your tax return.

What is the risk/reward ratio in cryptocurrency trading, and how to use it

The risk/reward ratio or risk/return ratio is a commonly used metric in trading that compares the potential profit of a trade with the potential loss. That said, it’s the reward traders stand to make for the risk they take. 

For example, an investment with a risk/reward ratio of 1:3 would mean that for every dollar the investor spends, they gain three dollars if the trading goes in their favor. The risk/reward ratio is decisive to cryptocurrency trading, whether for daily trades or crypto investment for the long run, known as “hodling.”

To gain a better understanding, let’s consider it in the context of crypto trading.

How to calculate the risk/reward ratio

Assuming that the prevailing price of Ether (ETH) is $2,000, a crypto trader might decide to enter a long position (buy) with the following parameters:

Entry price: $2,000

The price at which they purchase ETH.

Stop-loss: $1,800

Should the price of ETH go down, which is not in the trader’s favor, the stop-loss point is where they would sell the ETH acquired (for a loss) and avoid further losses. In other words, they’re risking $200 per ETH bought at $2000.

Take profit: $3,000

If the price of ETH goes up, the take profit price is the point they would sell the ETH, which, in this case, would be for a profit of $1000, a reward of $1000 per ETH.

Plenty of risk/reward ratio calculators are available online for cryptocurrency trading. Using the above example, here’s how to manually calculate the risk/reward ratio:

  • The initial risk is $200 per ETH (the distance between the entry price of $2,000 and the stop-loss price of $1,800).
  • The take-profit level offers a reward of $1,000 per ETH, which gives a risk-reward ratio of 1:5 ($200 risk divided by $1,000 reward).

Here is the formula for the risk/reward ratio:

Related: What is a trading journal, and how to use one

What are the pros, cons, buts and howevers of the risk/reward ratio?

The risk/reward ratio helps traders evaluate a trade’s potential risks and rewards, and make decisions accordingly. It allows traders to manage risk effectively by setting stop-loss orders and take-profit levels, limiting potential losses while maximizing profits.

However, the risk/reward ratio is a measure for managing risk and does not guarantee success in trading because:

  • It is based on assumptions about an asset’s future price movement, which may not always hold.
  • It can be oversimplified and may not consider other important factors, such as market conditions, liquidity and transaction costs.

For example, if the market suddenly becomes highly volatile (high price fluctuations), a trader may need to keep adjusting stop-loss or take profit levels. And the crypto market is known to breed volatility.

After calculating the risk/reward ratio, the trader should evaluate whether it suits their trading strategy and risk tolerance. That said, one cannot rely solely on the risk/reward ratio for cryptocurrency trading. Traders should use it with other risk management strategies, trading plans and discipline to succeed.

How to optimize the risk/reward ratio?

What is considered a good risk/reward ratio? While 1:2 is regarded as a practical and optimal risk/reward ratio in crypto (as well as traditional trading), there are no fixed rules for its use, with the ratio depending on the traders’ expectations and strategy.

Arriving at the optimal risk/reward ratio requires balancing a trade’s potential risk and reward, which depends on risk tolerance and trading strategy. Several metrics can accompany the risk/reward ratio or enable traders to optimize it.

Here’s how to use the risk/reward ratio for crypto trading:

Position size

The position size is not necessarily a measure or metric; it’s the amount of capital (crypto asset capital) allocated to each trade. Determining the position size is a critical component of trading risk management strategy. It helps to control potential losses and profits of a trade.

The position size directly impacts the risk/reward ratio, i.e., a larger position size can increase a trade’s potential profit and the possible loss. Conversely, a smaller position size may limit the potential profit and loss.

Win rate

The win rate is the percentage of the total number of profitable trades to the total trades, measuring how often a trader’s trades are profitable. A high win rate means the trader consistently makes profitable trades and doesn’t need to rely as heavily on big winning trades. Accordingly, the trader can afford to use a lower and safer risk/reward ratio, which can still be profitable because the trader is winning more often.

On the other hand, a lower win rate means that the trader needs to rely more on big winning trades to make money and face the volatility risks associated with a more significant risk/reward ratio.

Maximum drawdown (MDD)

Maximum drawdown is an essential metric for traders to consider when assessing their trades’ risk/reward ratio. It is the biggest percentage drop a trader sees in their trading account from its highest value before the decline started. It measures the largest amount of money a trader lost in their account from its highest value before things started going downhill. So how does maximum drawdown influence the risk/reward ratio?

Suppose a trader has a risk/reward ratio of 1:2, meaning they risk $1 to potentially make a profit of $2. Furthermore, imagine the maximum drawdown of the trading strategy is 50%. In that case, the trader could potentially lose half of their trading account before the strategy turns around and becomes profitable again.

As such, even though the risk/reward ratio is favorable, the strategy’s overall risk may be too high. One way around this is to use a narrow stop-loss and avoid the potential loss of the maximum drawdown. However, this translates to a lesser risk/reward ratio.

It’s about finding the right balance between managing the maximum drawdown risk and maintaining a favorable risk/reward ratio.


Expectancy measures the likelihood of making a profit over the long term on a series of trades or investments. It measures the long-term profitability of a trading or investing strategy. Positive expectancy is more or less like the ultimate objective of all trading initiatives.

Akin to the win rate, the loss rate is the unprofitable percentage. The average win and loss sizes are the average profits and losses on a series of trades or investments.

The risk/reward ratio plays a critical role in determining expectancy. A high risk/reward ratio means that potential profits are more considerable than potential losses. This means that if a trader wins 33% of their trades with, say, a 1:2 risk-reward ratio, their average win is twice as large as the average loss, which, in turn, translates to higher expectancy. Conversely, for a low risk/reward ratio, traders would need more wins (win rate).

What factors should be considered while determining the risk/reward ratio in cryptocurrency trading?

Several factors often influence cryptocurrency trading and the risk traders will take to hit the desired profits. Here are a few:

Crypto market volatility

If there is one thing the cryptocurrency ecosystem is infamous for — apart from the hacks and rug pulls — it is how volatile its trading scene is. Set risk/reward ratio with careful consideration.


In simple words, liquidity refers to reserves, tokens or token pools readily available for exchange. It translates to the ability to buy and sell assets quickly and easily. Low liquidity of a crypto asset can increase the risk of trading and make it more challenging to realize profits.

Strength of underlying technology

What the trading token stands for, i.e., the problem it solves and the potential of its growth, greatly influences the risk of trading with it. The more reputed and established the token, the lower the risk of trading with it.

Regulatory landscape

The cryptocurrency world has a long way to go regarding the regulations jurisdictions create around it. And each new (or updated) law directly impacts trading sentiment.

Related: What is profit and loss (PnL) and how to calculate it

How important is the risk/reward ratio in cryptocurrency trading?

Just as a seesaw balances two opposing forces, the risk and reward of an investment opportunity must also be carefully balanced. The risk/reward ratio requires constant adjustments and vigilance to maintain balance and avoid the pitfalls of either extreme.

As detailed in this article, there are many ways to optimize it and several factors influencing it. While it is an important metric, it is not a holy grail solution that guarantees success in any crypto trading strategy. Understand and experiment with how it plays into the broader set of trading strategies and risk management.

How to check an Ethereum transaction

A transaction on the Ethereum blockchain is technically initiated by an external account owner (not a contract). For example, if User A sends 1 Ether (ETH) to User B, the action of debiting from one account and crediting to another changes the blockchain’s state.

The change specifically takes place on the Ethereum Virtual Machine (EVM). Ethereum transactions need to be broadcast to the entire network, and any node can broadcast a request for the execution of a transaction on the EVM.

After broadcasting the request, a validator can then execute the transaction and propagate the state change to the whole network. Transaction fees are incurred during the process of validation, and each transaction must be included in a validated block. There are different types of transactions on the Ethereum network:

  • Regular transactions: transactions occurring from one account to another.
  • Contract-execution transactions: transactions interacting with deployed smart contracts (the “to” address is a smart contract address).
  • Contract-deployment transactions: transactions with no “to” address (the data field is simply used to deploy the smart contract’s code).

How to check the status of an Ethereum transaction

Here’s a brief step-by-step guide on how to track Ethereum transactions:

Step 1: Select an Ethereum blockchain explorer

Some blockchain explorers are specific to Ethereum, such as Etherscan, Ethplorer and EthVM. Others support multiple chains, such as and Tokenview, among others.

Step 2: Enter the transaction hash into the blockchain explorer’s search field

On Etherscan, for example, the search field is on the top, left-hand corner of the screen next to a dropdown that says “All Filters.” Depending on the tool, a user can search for information based on a wallet address, transaction hash (txid), block, token or domain name.

The txid is a unique identifier attached to a specific transaction. All transactions carried out on-chain, or those to and from external addresses, carry a unique txid found in the transaction details.

Depending on the platform, it can also be called a “hash” or “txn hash.” It usually looks like a string of random letters and numbers. On MetaMask, for example, a user can instantly see the txid upon clicking the “Activity” tab and selecting the transaction.

Other than the txid, traders can also use their public address (a string of 42 characters corresponding to their public account). In this case, they will be taken to an overview of their wallet activities, allowing them to navigate to the specific transaction independently.

Related: Ethereum wallets: A beginner’s guide to storing ETH

Step 3: Click the icon for “search” or “enter” on the blockchain explorer

Step 4: Check if the transaction was successful or not

How to know if an ETH transaction was successful: Details indicating the state of the transaction will appear on the blockchain explorer. If the transaction was successfully validated and is now on the blockchain, it will say “success” or “successful.”

If there are no errors displayed, it means that the transaction was completed successfully. The ETH should be credited to the destination wallet or exchange account within 24 hours of sending.

In the event of an Ether transaction failure, on the other hand, several error messages can appear:

  • Error message or symbol: A red exclamation point or an error message saying “bad instruction” or “out of gas” means that the transaction was unsuccessful and the funds did not reach their intended destination. In the case of an “out of gas” error, users can double the gas limit they initially specified and try again.
  • Reverted: This pertains to a smart contract user error. It means that the user should double-check the details of the transaction.
  • Transaction not found: Either the transaction did not go through or it isn’t appearing on the blockchain explorer yet. Try using another explorer. If it still doesn’t appear on multiple ones, there’s a good chance it did not go through.
  • Pending: The transaction is still waiting to be validated or processed, but it was located in the explorer’s transaction pool. Sometimes pending transactions can still be canceled or replaced by a user.

Related: ​​​​How to sell Ethereum: A beginner’s guide to selling ETH

How long does an Ethereum transaction take to process?

An average transaction on the Ethereum blockchain will typically take between 15 seconds and five minutes to process, depending on several factors. These include the amount paid to process it (transaction fee) and how busy the network is at the time of processing.

Ethereum transitioned from a proof-of-work to a proof-of-stake blockchain after the Merge. However, transaction speeds remain roughly the same. According to the Ethereum Foundation, it’s a common misconception that the Merge drastically sped up transactions.

However, there’s a slight difference, with slots occurring precisely every 12 seconds post-Merge compared with every 13.3 seconds pre-Merge. In any case, the change is barely noticeable by most users, as processing still usually depends on network congestion and transaction fees.

When a transaction is initiated, it is logged into Ethereum’s memory pool (mempool) and waits for validators to pick it up. The mempool functions much like a waiting room where pending transactions are held.

Once a validator enters transaction data into a block and adds the block to the blockchain, the transaction is considered complete. It is said to be finalized and irreversible after six additional blocks have been mined and added on top of it.

By checking a transaction’s status, traders can confirm whether their transaction has succeeded or failed and how many blocks have been created since their transaction was added to the chain.

Why should traders check a transaction’s status?

Ethereum participants must pay gas fees to use the network to transfer funds or deploy smart contracts. The fees largely depend on the number of participants waiting to execute transactions at a given time.

Network congestion and demand are thus directly proportional to transaction costs. When demand is high, costs rise — the opposite is true when demand is low. In any case, checking a transaction’s status helps a trader monitor the cost of using the network.

It can also help users determine if the gas fee they paid is sufficient to have their transaction confirmed. Low gas fees can usually truncate or delay transactions, leaving them to remain pending for long periods of time, especially during high network congestion.

Such transactions will remain pending until the gas fees reach the required minimum fees on the network. If this happens, a user can resend the transaction by resubmitting it and increasing the gas fee while ensuring it carries the same nonce.

In addition to transaction status, Ethereum blockchain explorers can also reveal the following helpful information:

  • Timestamp: the date and time the transaction was added to the blockchain.
  • Block confirmations: the number of blocks mined since the transaction was confirmed.
  • Transaction fee: the fee paid to the miner or validator.
  • ETH price: the price of ETH at the time of processing.
  • Base fee: the lowest fee required to transact on Ethereum.
  • Gas limit: the maximum amount of gas the sender is allocating to process the transaction.
  • Nonce: a unique number marking each transaction executed on a user’s wallet; it increases by one each time a new transaction is sent.

By being aware of the above, traders can stay on top of their ETH transactions and make sure transactions are processed correctly and quickly. This helps to ensure smooth Ethereum transactions when sending and receiving funds or deploying smart contracts. Understanding a transaction’s status can also help users adjust their spending habits and optimize network usage.

How to play and earn in CryptoKitties

Reminiscent of Tamagotchi and Pokémon, the wildly popular digital pets and creatures of the 1990s, CryptoKitties is a blockchain-based game where players can collect, trade and breed digital virtual cats. CryptoKitties was the first Ethereum-based game, and its popularity underscored many of the network’s scaling issues.

This digital cat-breeding blockchain game caused quite a bit of congestion on the Ethereum blockchain, peaking in 2020. However, the game’s creators were able to address these issues.

What is CryptoKitties?

Launched in 2017, CryptoKitties was built by Dapper Labs, the company that uses blockchain technology to bring nonfungible tokens (NFTs) and new forms of digital engagement to fans around the world. CryptoKitties is also considered one of the world’s first-ever blockchain games.

In the game, each one of the digital collectible cats possesses a unique genome that determines its physical traits. Cats can be bred to create new virtual kittens and unlock rare “cattributes” or in-game cat features.

Is CryptoKitties an NFT game? Yes, CryptoKitties are unique, one-of-a-kind assets backed by NFTs, making them rare and valuable. They were built on Ethereum using the ERC-721 token standard, which allowed for the creation of unique NFTs.

CryptoKitties can be sold and traded, and cats with rare traits can fetch high prices. The rarest CryptoKitty of all time is the genesis cat, aptly named “Genesis” because it was the very first CryptoKitty hatched by the game’s creators. Genesis was sold in 2017 for 246.926 Ether (ETH), or around $119,328 at the time of selling. Ether has since appreciated, and so has the genesis cat.

How does CryptoKitties work?

Blockchain technology remains at the core of this game, but the unique CryptoKitties gameplay can be credited to its Genetic Algorithm (GA). The GA aims to mimic real genetic principles by structuring the smart contract code of each kitten like the DNA of actual living creatures.

Each kitty possesses its own digital genetic pattern, which in turn determines what type of offspring it will produce, in addition to its unique physical traits. This genome is stored in a smart contract, which is self-executing lines of code dependent on predetermined conditions.

Any two CryptoKitties can be bred together and produce offspring with their own distinctive cattributes. The immutable genotype stored in the smart contract likewise determines this new kitty’s phenotype. The GA mixes the code from both CryptoKitties to create new kittens, with the split between the parents varying every time they mate. This allows for unique kittens to be produced each time.

The game’s main premise is that players have to breed and sell their cats, which will allow them to earn ETH, especially for rarer cats. Generation and Cooldown are two crucial features of the game — both are necessary to understand which cats to purchase and breed during the selection process.

First, Generation determines how many generations a kitty is from its original parent. New Generation 0 kitties were released every 15 minutes during the first year of CryptoKitties. These kitties have no offspring yet, so if two Generation 0 kitties breed, they will produce Generation 1 offspring.

The Generation of each offspring is always one number higher than that of its parent from a higher generation. For instance, if a Generation 3 and a Generation 9 breed, their offspring will be Generation 10. This information can be found below each kitty’s photo, abbreviated as “Gen.”

Cooldown refers to a kitty’s breeding pace, such that a kitty with a lower cooldown will have a shorter breeding time. Kitties from higher generations will also have high cooldown rates. Both Generation and Cooldown affect the price of CryptoKitties, as these will determine how desirable they are on the market.

Can you play CryptoKitties on mobile?

Those looking to explore CryptoKitties gameplay on mobile can do so through an HTC mobile phone, which exclusively carries the United States mobile app of CryptoKitties.

Technically, however, players looking for information on how to play CryptoKitties on Android or iOS devices can simply access the mobile version of the website through a mobile browser. However, serious players looking for a dedicated app can currently only do so via an HTC phone.

How to get started with CryptoKitties

Here is a step-by-step guide on how to set up a CryptoKitties account to get started:

1. Create a MetaMask wallet

Players must first have an existing MetaMask wallet or create one. MetaMask will allow users to buy, sell and breed CryptoKitties. Once a wallet has been created, new users can proceed to the CyrptoKitties homepage, where they will be asked to link their MetaMask wallet upon clicking “Start” on the upper right-hand side of the screen.

2. Purchase Ether (ETH)

CryptoKitties can be purchased using Ether, which can, in turn, be bought from cryptocurrency exchanges, such as Binance and Coinbase. Ether can then be transferred to MetaMask to ensure that players have enough funds to purchase their CryptoKitties.

3. Create a CryptoKitties account

After connecting a user’s MetaMask wallet with CryptoKitties, they will be asked to provide their email address for important updates and key in a nickname they wish to use in-game. Players have the option to go through a basic “Kitten Class” tutorial where they will learn how to breed CryptoKitties.

How to play and earn in CryptoKitties

Once a player has successfully set up their CryptoKitties account, they can start playing the game. Below is a step-by-step guide on how to earn money playing CryptoKitties:

1. Buy CryptoKitties

Players can now view CryptoKitties for sale through the website or secondary NFT marketplaces like OpenSea. Offers can also be made to other players, allowing others to bid on cats even if they aren’t for sale. The owner can choose to decline or accept the offer. Each offer expires after three days.

New players have the option to purchase just one kitty to get started or buy a pair right away. If a player decides to purchase just one CryptoKitty, they can begin breeding it with a Sire from another player. If they purchase two CryptoKitties immediately, they can breed their cats for a much lower fee.

How much are CryptoKitties? Prices vary, but kitties may sell for as low as 0.001 ETH or as high as 600 ETH, maybe even more. Factors such as how rare a particular kitty is and how sought-after its cattributes are can affect the price it will fetch in the market.

2. Breed CryptoKitties

As mentioned, players can breed two of their own kitties together or breed them with a public Sire. It is best to breed kitties coming from the same generation to produce a kitty with a relatively low Generation as well.

To breed one’s own Kitties together, a player simply has to click on a kitty they want to assign as the “Sire” or the father. Then, click the “Breed” button and select “Sire with my Kitties.” Next, the “Dame” or mother cat can be selected to complete the breeding pair. To proceed, click “OK, give them some privacy” to allow the kitties to breed in peace.

To breed one’s Kitty with a public Sire, a player has to select a Sire from the marketplace and select the “Breed Now” option. They can then select a Dame from their own litter to form a breeding pair and then proceed with the option to give the Kitties privacy to breed. As previously mentioned, both options cost minimal fees in ETH, which goes to community-run bots and smart contracts.

3. Sell or Sire CryptoKitties

Once a player has produced new breeds of CryptoKitties, they can be put up for sale or Sired to the public. Each kitty in a litter will have “Sell” and “Breed” options, which will lead to auction pages.

Players can create a Siring auction by clicking “Breed,” which will put their Kitty up for Siring via the Siring market. “Sell” likewise creates an auction, setting the kitty up for sale on the marketplace. The player can select the starting price, ending price and auction duration.

Crypto trading vs. crypto investing: Key differences explained

The most significant advantages of trading cryptocurrencies are quick profit generation, secure value storage, low fees and universal accessibility. Meanwhile, crypto assets’ inherent risk and volatility count as disadvantages.

The main benefit of cryptocurrency trading is the potential to generate quick profits by taking advantage of short-term price movements and market trends. Some cryptocurrency traders also value assets such as BTC as a secure store of value, especially since cryptocurrencies were designed to function independently of central institutions.

Cryptocurrencies can also be traded peer-to-peer, incurring much lower fees than transactions involving central authorities, such as banks and financial institutions. Cryptocurrencies are also generally accessible universally, allowing anyone with an internet connection and mobile device or computer to create a cryptocurrency wallet and start trading.

On the other hand, crypto trading also carries significant risks due to its high volatility — meaning prices can swing rapidly up and down. This could lead to substantial losses if traders are not careful and don’t monitor their positions. 

So, is crypto trading good for beginners? While beginners can start trading small amounts as they build experience, it is worth noting that the risks associated with crypto trading are much higher than most other forms of investing, meaning that high-stakes trading may not be the most suitable investment method for beginners.

What is Gods Unchained, and how to play it

The game-changing possibilities that blockchain spurs through immutability, tokenization and decentralization are immense. The technology has significantly expanded the scope of traditional trading and collectible card games by democratizing the ideals of ownership, scarcity, interoperability, transparency and play-to-earn (P2E)

The excitement factor of trading card games (TCG) — previously confined to school lunch tables and enthusiast get-togethers — has now truly gone global, thanks to blockchain gaming.

Gods Unchained embodies the future of trading card gameplay. It taps into the rich world of marvelous mythical gods and their strengths and weaknesses, represented by over 1,500 unique cards.

What is Gods Unchained?

Gods Unchained is a digital trading card game with fast-paced gameplay and strategic deck building. To succeed in the game, players must align themselves with one of six gods, build decks of 30 cards, and use strategic gameplay to outsmart, subdue or decimate their opponents.

Each game involves tactical decision-making, resource management and card-based combat, with the ultimate goal of reducing the power of the opponent’s guard to zero.

The power behind Gods Unchained

If you are wondering who is behind Gods Unchained, it’s none other than Immutable, an Australian-based game development studio.

The studio is also working on several projects in the gaming and blockchain space, including a nonfungible token (NFT) marketplace, a metaverse gaming offering and a decentralized gaming platform. Gods Unchained offers a diverse collection of cards, a constantly evolving meta, and frequent updates and events, making it an exciting game for players.

The story

Gods Unchained is a blockchain-based trading card game that takes players on a journey through the rich fantasy world of Eucos. Valiant mortals wield powerful magic to overcome epic battles while navigating the conflicting whims of the six domain gods. The gods have been defeated and imprisoned by the titans, who have corrupted the world and enslaved humanity. But a few humans have become god-like, using their powers to fight the titans and liberate humanity.

Players collect and trade digital cards featuring the champions, spells, artifacts, and creatures of Eucos. Through intricate artwork and stats, each card reveals a diverse story from both grand and intimate perspectives. Expansion sets like “Light’s Verdict,” and side stories like “Winter Wanderlands,” constantly add fresh stories, content and characters.

Gods Unchained offers engaging gameplay, and as the stories of Eucos continue to unfold, players can look forward to many more exciting adventures in this vibrant and ever-evolving world.

Gameplay overview: How to play Gods Unchained

Players are matched against each other in a test of skill and strategy. They take turns playing cards, making moves and using their gods’ powers to gain the upper hand. The goal is to reduce the opponent’s health to zero and emerge victorious. The game is fast-paced and action-packed, with plenty of twists and turns to keep players on their toes.

Choosing gods and their powers

Gameplay begins with the players aligning one of the six gods or goddesses of light, death, nature, deception, war and magic. Each god has a unique set of cards, strengths and weaknesses, and choosing the right one can give the players a strategic advantage in the game.

When starting the game, the players must also choose one of three unique god powers that provide special abilities and advantages throughout the game. These god powers can turn the tide of a game, create a powerful advantage or launch a surprise attack on opponents. They are designed to be potent but not game-breaking, so players can still enjoy a fair and balanced gameplay experience.

Creating card decks

Next, the players strategically create their decks of cards. A maximum of 30 cards are allowed, each with unique abilities, stats and artwork. Players can use various combinations of cards to build a powerful deck to defeat opponents.

A deck full of devastating spells can be the key to success. Some prefer a brute-force approach with a deck full of powerful creatures. With so many card options, the possibilities are endless.

Playing the game

The game begins with players entering the mulligan phase, where they can reshuffle cards in their deck that may not be useful in the early stages. It’s wise to shuffle away cards that require more mana (but more on mana later).

Players then use their cards to attack the opponent’s cards or their gods. Each card has an attack and health value, and is removed from play when its health is zero.

Players can also use their god power to gain an advantage over their opponents. Each god power provides a unique ability that can be used once per turn if the player has enough mana to activate it.

As the players rank up, they’re rewarded with resources like flux, favors, starts, the native GODS tokens, card packs and more.

Understanding mana

Mana is a key resource in Gods Unchained. Each card in a deck has a mana cost, and the player must have enough on their mana wheel to play it.

The mana system is a critical gameplay component that requires players to manage their resources to play their cards and gain the upper hand.

Game modes in Gods Unchained

Gods Unchained gameplay offers a variety of game modes for players to enjoy. Each delivers a unique experience, challenging players to build their decks and master the game’s mechanics.

Ranked matches

This is the primary game mode, where players compete against others of a similar rank. Each win earns the player experience points, stars and ranking points, which help them progress up the ranked ladder.

Players can climb up to the following ranks: Rusted Bronze, Purified Bronze, Rusted Iron, Purified Iron, Impact Meteorite, Astral Meteorite, Twilight Shadow, Midnight Shadow, Auric Gold, Solar Gold, Ethereal Diamond and Mythic.

Daily play and earn

This is the primary way players earn in-game currency. Players get new decks to play with each day and earn GODS for completing daily objectives and winning matches.

The Weekend Ranked Event takes place every weekend and rewards players with valuable card packs from the game’s latest expansion sets.

Tutorial missions

New players go through tutorial missions that guide them through the game’s mechanics and reward them with card packs after completion. They are highly recommended for new players to become familiar with the game and build their card collection.

Solo mode

Gods Unchained also features a solo mode where players can practice battling against an AI opponent, testing new decks and strategies without worrying about their ranking or rewards.

Direct challenge

Players can challenge their friends to a game of Gods Unchained by generating a unique code for them to join.

The heart and soul: The cards and deck

Each deck consists of 30 cards that players assemble before the battle. Decks represent their playstyle, and a carefully constructed one is the key to victory. The cards depict specific attack and health values, and the amount of mana required to play.

Gods Unchained cards are categorized based on their domain (i.e., which gods or goddesses the cards align to). Cards not belonging to a particular domain are considered neutral and can be used in any deck.

The game is played with three card categories:

  • Creature cards: These attack the opponent’s choice of god or creatures. Players can have up to six creature cards on the board at once.
  • Spell cards: These cast spells determined by their text. Once used, they are sent to the void.
  • Relic cards: These give players supporting options or allow their god to attack directly. Only one relic card can be active at once, and casting one will replace the previous one.

Creating a winning deck can be challenging for beginners, so the game offers six options for starter decks.

Gods Unchained also features card sets, which are collections of cards grouped by event or theme (free-to-play, promotional, expansion and one-of-a-kind). As with most digital trading card games, regular rollouts of new sets are always expected.

Based on in-game card quality, Gods Unchained cards can also be classified into plain and shiny:

  • Plain cards: Non-NFT cards with gray borders; earned by playing the game. They are not tradable on any marketplaces. However, two or more of the same plain card can be transformed into an NFT shiny card by forging (i.e., fusing) them using GODS and flux.
  • Shiny cards: The Gods Unchained NFT cards. Variants include meteorite, shadow, gold and diamond.

Specific Gods Unchained cards pertain to card tribes that mark the faction they belong to and feature unique in-game abilities. For example, Anubian cards can draw discarded creature cards back from the void. Gods Unchained tribes include Aether, Amazon, Anubian, Atlantean, Dragon, Guild, Mystic, Nether, Olympian, Structure, Viking and Wild.

Finally, based on rarity, cards in Gods Unchained can be identified as:

  • Common (gray gem)
  • Rare (blue gem)
  • Epic (purple gem)
  • Legendary (yellow gem)
  • Mythic (red gem)

With so many card permutations and combinations, gameplay possibilities are virtually limitless.

GODS: The blockchain token for the Gods Unchained ecosystem

The Gods Unchained native utility token, GODS, issued by Gods Unchained, is central to the game experience — holding relevance in almost every aspect of the Gods Unchained ecosystem — and enriches its engagement loop.

With a fixed supply of 500 million, players can get GODS rewards in various ways. In daily play and earn, players receive fragments based on their rank and win rate, which are converted to GODS tokens at the end of the event.

The conversion rate depends on the number of active players, rank and daily prize pool. Through the “Offering of the GODS” manual staking, GODS tokenholders can also get additional GODS rewards for actively contributing to the ecosystem through playing, trading, purchasing and forging during every reward period.

Beyond gameplay and staking, the GODS token is also designed to reward players for their contributions to growing the game, and building a thriving ecosystem through community events, surprise rewards, content creation, referrals and more, with 61.5% of GODS supply allocated toward ecosystem development.

The beauty of favor and sanctum

Based on the idea of pleasing the gods, Gods Unchained enables players to build a resource called favor. This can be used to buy powerful cards across the realms from the sanctum, where gods watch the battles.

Favors are essentially rewards for moves that appeal to the gods. Favor resets at the start of each new game. This adds another layer of strategy and minimizes predictability, ultimately making gameplay all the more exciting.

Unlocking NFT possibilities with flux

Akin to favors, Gods Unchained features flux, which are resources that cannot be bought or sold. They can be earned only through wins. The amount of flux earned is determined based on the player’s rank and games played in The Gauntlet of the Gods challenge.

Flux and GODS can be used to forge two or more copies of a core card to create an NFT card that can be sold across NFT marketplaces. Essentially, players can create real-world digital assets. In parallel, it qualifies as a P2E NFT card game.

Stars and the star store: Yet another rewards avenue

Stars are another off-chain resource tied to player accounts. When players win a ranked game, they are awarded a “Star Vial” containing a random number of stars.

Players can receive six Star Vials:

  • Nebula Vial: 40 to 60 stars
  • Giant Vial: 100 to 200 stars
  • Supergiant Vial: 200 to 300 stars
  • Supernova Vial: 400 to 600 stars
  • Galactic Vial: 1,000 to 1,200 stars
  • Universal Vial: 2,000 to 2,500 stars

Once a vial is opened, the player may also be upgraded to the next level. Players can exchange stars for cards via the star store’s rotating list of options, ranging from commons to legendaries. NFT cards are not available in this store. With such rewards, this blockchain-based game is beyond any typical online collectible card game.

How to stake Cardano (ADA)

Founded in 2015 by Ethereum co-founder Charles Hoskinson, Cardano is a proof-of-stake (PoS) blockchain that is often referred to as the “Ethereum killer,” owing to its superior technology and high level of security and sustainability.

Much like Ethereum, Cardano also allows users to stake its native cryptocurrency, ADA, to earn staking rewards. Cardano allows individuals to stake via staking pool operators and pool their tokens with other users or run their own Cardano staking pool.

Staking pools are frequently operated by those with technical experience and the appropriate hardware for effectively staking on the Cardano network, although anyone can become their own staking pool operator. Users also have complete autonomy to decide which pool they’d prefer to join and can assess each based on pool size, uptime and past performance.

Cardano divides periods of time into epochs, a measure of time used to specify when events in the network are set to occur, such as incentive distribution or validator transaction assignments.

On Cardano, each epoch consists of 432,000 slots, smaller units of time further divided into one-second intervals. One Cardano epoch lasts approximately five days. After each epoch concludes, a snapshot records the distribution of staked ADA tokens. This is used to calculate the rewards each staker will receive.

Users who wish to participate in staking will enter a pool through delegating, which allows coins to be unstaked and restaked multiple times with various pools, provided that user wait for the current epoch to pass before relocating their assets.

Steps to stake Cardano (ADA)

Below is a step-by-step guide on how to stake Cardano:

Find a reputable cryptocurrency exchange

The first step is to find a cryptocurrency exchange that supports ADA trading and staking, such as Binance and Coinbase. There are other options for staking ADA, which will be discussed in greater detail later on.

After creating an account with a cryptocurrency exchange, users must deposit ADA tokens in their exchange wallet. This can be done by buying Cardano coins directly from the exchange or transferring existing ADA holdings into their exchange wallet.

Select the staking option

The next step is navigating to the “Staking” page on the exchange platform’s interface and selecting “Cardano.” Most platforms will provide the option to select the staking duration, which will determine the amount of time one’s holdings will be locked away.

After selecting the desired stake duration, users have to decide how much ADA they wish to stake. Exchanges usually charge a small fee for staking services, so this must be considered when deciding the amount to be staked.

Research staking pools

Once the appropriate stake duration and amount of ADA coins have been selected, it is time to research staking pools. Exchanges offering staking services usually list recommended staking pools from which users can choose. Staking pools are usually ranked based on key information, such as the total number of blocks produced, overall performance in block creation, expected returns on investment and more.

While the most attractive pools based on these indicators are usually ranked on top, users can still choose staking pools based on their own criteria. Before selecting a pool to join, assessing factors such as pool size, uptime, liquidity and past results is essential. Depending on the platform, users can view important details about each staking pool, such as:

  • Return on staked ADA or interest rate
  • The cost to join (divided into a tax percentage and a fixed rate)
  • The size of the staking pool in terms of how much ADA is in it and how close to capacity it is
  • How much money the staking pool operators have delegated to the pool
  • The number of blocks that have been minted in the pool’s history.

Some users may also choose to consider off-protocol factors when selecting what staking pools to join, such as how certain pools align with their personal advocacies. These include considering whether a pool is operated by a non-government organization or is running on green energy, and the like.

Delegate your ADA tokens

After finding a suitable staking pool, users can then delegate their ADA tokens to the chosen pool. This is done by entering the password to one’s wallet and clicking “Delegate.” Once completed, the user’s assets will have been successfully staked in the pool.

Where can I stake my Cardano?

Here is how to stake one’s Cardano crypto asset holdings on various platforms.

How to stake Cardano on Coinbase

Coinbase offers an annual percentage yield, or APY, of 3.75% for Cardano staking. According to the platform, users’ ADA remains in their account at all times, and they can opt out anytime. To stake ADA, users must:

  1. Create an account on Coinbase.
  2. Select their desired Cardano staking pool and review the corresponding staking amount required.
  3. Buy Cardano on Coinbase or deposit the tokens from an external wallet into their Coinbase wallet.
  4. Add their ADA to their selected Cardano staking pool and approve the corresponding fees and minimum lock-up period.
  5. Wait for their Cardano staking rewards to arrive every five to seven days after the initial holding period of 20–25 days.

How to stake Cardano on Binance

According to Binance, users can stake Cardano on the exchange and earn up to 6.1% APY. Users can also receive weekly staking rewards and unstake them anytime to access their funds without waiting for an unstaking period. To stake on Binance:

  1. Create an account on Binance.
  2. Visit the Binance “Staking” homepage.
  3. Ensure that there are adequate funds in your Binance spot wallet.
  4. Choose ADA from the list of tokens listed on the page.
  5. Read and follow the prompts on the screen about first-time staking on the platform. Click “Next.”
  6. A “Stake Crypto” pop-up will appear. Enter the desired amount for staking or choose the percentage of total assets to be staked.
  7. To restake token rewards automatically, select “Auto Restake.” This will compound your staking rewards automatically. To have staking rewards deposited to your wallet, select “Disable Auto Restake.”
  8. Click “Preview Stake.” Review the details and click “Confirm.”
  9. The user will receive a “Staking Successful” confirmation in a pop-up window. To complete, click “Understood.”

How to stake Cardano on eToro

EToro offers its users convenience by automatically staking supported cryptocurrency holdings, such as ADA and Ether (ETH), on behalf of users. As such, no extra steps are involved in staking ADA on eToro. Once a user has created an account and stored ADA in their eToro wallet, they can automatically earn staking rewards.

EToro retains a small percentage of the reward, or “fee,” for all operational and technical costs. The reward percentage of the monthly staking yield that each user can receive will depend on their membership status on eToro:

  • Bronze members and all users in the United States: 75%, with a holding period of nine days.
  • Silver, Gold and Platinum Club members: 85%, with a holding period of nine days.
  • Diamond and Platinum+ Club Members: 90%, with a holding period of nine days.

How to stake Cardano on Yoroi

Yoroi offers up to 4.62% APY on Cardano staking. Yoroi is a noncustodial light wallet for Cardano where users can send and receive transactions and stake their holdings to enjoy returns. To stake Cardano on the platform:

  1. Download the Yoroi plug-in from the Yoroi website.
  2. Enter payment information to be used when purchasing assets through Yoroi.
  3. Select between the platform’s hot wallet or cold wallet options.
  4. Follow recovery set-up prompts on the screen.
  5. Purchase ADA through Yoroi or transfer existing holdings to your Yoroi wallet.
  6. Select a Cardano staking pool and delegation icon.
  7. Add desired funds to the selected pool and review the corresponding fees.
  8. Confirm and start earning returns on ADA.

What are the risks of staking Cardano?

Staking Cardano is an attractive way to generate passive income, but there are still some risks that users should consider. A potential risk of staking ADA is a high transaction fee. As such, it’s essential to research each pool’s fees and rewards before committing funds.

Additionally, since staking pools must remain online 24/7, they remain potentially vulnerable to cyberattacks. Users risk losing their funds if the pool operator is not security conscious.

Finally, Cardano staking rewards depend heavily on market prices. So, if the price of ADA depreciates, users may experience lower returns than expected. As with any investment, it’s essential to research and understand any associated risks before staking ADA on the Cardano network.

Polygon supernets vs. Avalanche subnets: Key differences

Designed to be a scalability solution, Supernet is the Polygon network’s blockchain development platform that aims to help developers create their own blockchain protocols in a cost-efficient way. 

Developers building on the Polygon network can access a wide range of validators and tools for effortless integration and third-party services to assist with implementation, design and management.

Technically, supernets work on problem-solving for Polygon’s development framework, Polygon Edge. Polygon Edge helps build Ethereum-compatible blockchains while keeping them secure, decentralized and efficient.

The big picture concept of supernets is that they are collections of interconnected networks that promote collaborative work while serving as a secure data-sharing hub. They can hold and organize large quantities of data and facilitate communication among users.

The benefits of using Polygon supernets include interoperability, specificity, enhanced scalability, security and better decentralization. Supernets also address Polygon Edge’s technical challenges really well, especially regarding chain configurations and bootstrapping decentralized validator sets.

Related: What is a supernet, and how does it work?

What is quantum cloud computing, and how does it work?

Quantum cloud computing makes quantum computing resources available to organizations, academics and other users through cloud technology.

Cloud-based quantum computers function at greater speeds, with higher computing power than conventional computers, because they employ the principles of quantum physics when solving complex computational problems.

Different types of quantum computers exist, such as quantum annealers, analog quantum simulators and universal quantum computers. Quantum annealers are considered the least powerful among quantum computers but work well to solve optimization problems. Analog quantum simulators, on the other hand, are powerful systems that can solve physics and biochemistry problems.

Universal quantum computers are the most powerful and widely used type of quantum computer. They are also the most difficult to build. Universal computing can potentially access up to 1 million qubits (basic units of quantum information). However, the current technology can only access around 100 to 400 qubits.

Quantum computing vs. Classic computing

How is all of this relevant to blockchain technology? Because quantum computing is incredibly powerful, it has understandably raised concern in the blockchain community, as it could potentially be used to the detriment of blockchain technology as we know it today.

First, quantum computing can hypothetically be used to gain an unfair advantage over other proof-of-work (PoW) miners and possibly dominate blockchain mining. This places decentralized PoW networks such as Bitcoin (BTC) and Litecoin (LTC) under the threat of centralization.

Second, quantum computing can also theoretically decrypt encryption codes used by blockchains. This means that quantum computing could enable an attack on a blockchain network using cryptography. However, it’s not all doom and gloom for cryptographic systems, as quantum cloud computing may also offer an effective solution for protecting and strengthening blockchains from quantum attacks.

What is a crypto launchpad, and how does it work?

In the world of cryptocurrency, joining projects early may be beneficial. For example, investors who bought Bitcoin (BTC) in 2011 are now reaping the benefits of their investment. They discovered something new, saw its potential and stuck with it.

With cryptocurrency’s growing worldwide adoption comes a new fundraising platform: the crypto launchpad. Launchpads allow crypto investors to discover and invest in early-stage crypto projects before they are listed publicly. As a result, they can buy tokens for cheap and profit more when their value increases.

In recent years, crypto has enjoyed a significant rise in popularity despite market volatility which saw Bitcoin fall from $60,000 to around $35,000, Ether (ETH) crashing 40%, and Dogecoin (DOGE) falling 45%. The push for regulation has also been stepped up, with the Biden administration taking steps to regulate cryptocurrency.

Despite these events, interest in cryptocurrency remains at an all-time high. Investors and the general public are on the lookout for the next big thing, and crypto launchpads may offer the ideal platform.

Launchpads allow crypto project founders to build awareness and generate capital for their companies at a small price. Moreover, launchpads offer investors and founders a secure platform to discover and connect with each other.

What is a crypto launchpad?

A crypto launchpad, sometimes called a crypto incubator, is a decentralized exchange (DEX)-based platform where crypto projects are introduced and can obtain funding. Before being publicly listed, early-stage crypto token sales are made available to the project’s crypto investors.

Investors see this as a great chance to profit from a future price increase by buying tokens at low prices and selling them at a profit later on. Because the cost of launching is so minimal, the platform can also draw in more crypto projects for funding.

New founders also stand to gain from the platform, as they will have easier access to the pool of cryptocurrency investors and fans waiting for the next exciting venture.

In 2021, at the bull market’s peak, many new coins and projects were launched, with investors pouring money into them. However, some were scams, and many lost money since they didn’t have the proper skills or time to screen the projects.

In contrast, trusted crypto launchpads perform due diligence on behalf of users and investors, which is another reason for their growing popularity. New projects undergo a stringent screening process, with a third party enlisted to conduct Know Your Customer (KYC) verification on new users, helping to protect both founders and investors.

How does a crypto launchpad work?

Crypto launchpad platforms exist to connect cryptocurrency projects and interested communities. Launchpads help founders raise money from potential users and investors and give investors a chance to maximize their return on investment.

Transparency and security are two key features that attract investors. Users who create a new account will typically be subjected to a KYC process to verify their identity. This procedure also makes it harder for someone to manipulate the system by making transactions using several aliases.

Each crypto launchpad will have its own set of handpicked cryptocurrency projects and their current status. Interested investors should be able to access important information about these projects, such as the price and start date. Investors will also be able to purchase specific tokens once their sale starts.

Token sales on crypto launchpads are similar to blockchains in that they provide transparency and make it easy to track the distribution method for each token. This makes it possible for retail investors to invest in early-stage tokens. It further encourages an even distribution of tokens among investors and discourages “pump-and-dump” tactics.

What are the benefits of crypto launchpads?

Launchpads are advantageous for bringing cryptocurrency projects and investors together. Among the other benefits are the following:

  • Low fees: Some launchpads only charge a nominal fee, while others don’t charge anything for listings. Some launchpads make it quick and easy to start a project by lowering the barriers to entry.
  • Security: Launchpads vet both users and projects thoroughly, safeguarding everyone involved. It’s also unlikely that a breach would occur because investors have absolute ownership of their assets, and launchpads do not store user funds.
  • No waiting period: Tokens are available immediately after purchase without needing a processing period.

How to use crypto launchpads

The following are some general steps; however, they may differ slightly depending on the crypto launchpad they use:

Steps to use crypto launchpads

Types of crypto launchpads

Initial DEX offering (IDO) launchpads

IDO launchpads are decentralized platforms for crowdfunding. Tokens that represent assets hosted on a DEX are traded here. Some known IDO launchpads are FireStarter, BSCPad, GameFi, Seedify and TrustPad.

Initial NFT offering (INO) launchpads

INO launchpads allow investors to fund projects in which a collection, or collections, of nonfungible tokens (NFTs) are offered for sale on the platform. A few INO launchpads are Only1, BSCStation and Seedify.

Initial coin offering (ICO) launchpads

ICO launchpads allow founders to raise funds to finish developing their blockchain projects by offering tokens to investors. Investors will put money into promising projects, hoping for a significant return. Well-known ICO launchpads include CardStarter, Binance Launchpad and Polkastarter.

Initial game offering (IGO) launchpads

IGO launchpads are platforms where game and metaverse developers can get funding for their projects. These launchpads host IGOs, play-to-earn projects, gaming utilities and related NFTs. Some examples of IGO launchpads are Gamestarter, Enjinstarter and PlayPad.

Characteristics of a good crypto launchpad

Before investing in or launching a cryptocurrency project, it is important to do some research on the right launchpad.

For investors 

For investors who want assurance that these projects are safe, profitable and will earn a good return on investment, it’s vital to check the launchpad’s commitment to security. The platform should follow strict security protocols, use KYC checks and take other steps to safeguard personal information.

The minimum staking amount and perks associated with each launchpad will vary, so careful analysis is needed before deciding.

For founders

Founders interested in launching their project through a crypto launchpad should assess how well the platform promotes related projects and whether or not the community is supportive. In addition, it is essential to check the project vetting process, the criteria, and how fair and realistic the launchpad’s terms are.

A supportive community can be of great benefit since other members can help market projects to users and potential backers.

The future of crypto launchpads

Crypto launchpads are new platforms designed to help facilitate the funding of crypto projects. They aim to alleviate growing distrust surrounding cryptocurrencies and increase investor confidence.

By rejecting scammers and promoting legitimate crypto projects, launchpads help to improve the market and provide investors with a sense of security, which is advantageous for investors and founders. For investors, it helps to lower the risks while giving founders additional opportunities to market their projects.

As a bonus, regular investors can now access investments formerly reserved for institutional investors and venture capitalists. The development of crypto launchpads should make cryptocurrency investment easier and safer. And with more investors, it is hoped that the cryptocurrency industry will continue to grow.

DeFi vs. Web3: Key differences explained

The way people engage with technology, particularly in finance, has changed significantly along with the development of the internet over time. The division of these developments is known as Web1, Web2 and Web3.

Web1 is essentially the first iteration of the internet from the 1990s to the 2000s. Websites mainly consisted of static HTML pages and were not interactive. There was no infrastructure set up to accommodate financial transactions.

Web2 is when the internet started to become more interactive. It’s an era characterized by mobile applications, social media, and online content consumption. Fiat transactions over the internet were made possible.

During this time, however, there were several security holes, such as data privacy breaches and major hacker attacks. People had had enough of trusting third parties with their personal information only to discover that they were selling it. 

Web3 has stepped in to address the fundamental problems found in Web2. Instead of relying on enterprises, Web3 provides users with a sense of ownership through blockchain technology. With decentralization at the forefront, Web3 saw the emergence of Bitcoin (BTC) and other cryptocurrencies, decentralized apps (DApps) and DeFi.

Related: What is Web 3.0: A beginner’s guide to the decentralized internet of the future

With Web3, users will once again have control over their data thanks to blockchain technology and decentralized storage. They will also have complete discretion over what parties get access to their information.