Category Archives: Cryptocurrency

As celeb-fronted campaigns bring cryptocurrency into the mainstream, is it time for clearer regulation of ads?

A harsh spotlight was shone on cryptocurrency ads this month. The UKs ad regulator the ASA has said that it now will better police cryptocurrency content while TikTok has issued a warning to creators that it will not tolerate promotion of the divisive digital currency. At the same time, Google and Facebook appear to be opening the gate to more advertising from crypto companies having previously banned all ads. And even ads that do make it to air on the big screen have been quick to face criticism from the general public, wiser to the pitfalls of the crypto boom.

When Spike Lee the famed director behind films like Malcolm X appeared on screens last week extolling the benefits of why old money is out, new money is in in a campaign for crypto ATM operator Coin Cloud, he faced a swathe of criticism for failing to spot the hypocrisies.

Lauding Bitcoin et al as the digital rebellion against a financial system that systematically oppresses people of color and women, he marched through Wall Street denouncing archaic financial systems and encouraging the nation to cash in their dollars for cryptocurrency.

Do your research, Lee says between hyperbole. Is it a warning? If not, it should be.

According to the Federal Deposit Insurance Corporation, 5.4% of US households do not have a bank account, with the primary reason being a lack of sufficient funds to open one.

Yet these 20 million Americans appear to be the exact target audience that Lee was encouraging to rush to a Coin Cloud ATM to exchange their old money for a new currency thats inclusive and fluid.

Critics were quick to highlight that this group, arguably more than any other, is susceptible to the promise of making a quick buck without proper consideration for the risks involved with investing in something as volatile as cryptocurrency.

According to Glassnode, between May 17 and May 24, Bitcoin holders realized net losses of $2.56bn. Glassnode says most of these sellers were new bitcoiners who had acquired and subsequently sold the currency within the past three to six months.

In a survey of UK consumers conducted by behavioral finance experts Oxford Risk, 36% cryptocurrency investors admit their understanding of the sector was poor or non-existent.

But emotional factors such as the fear of missing out are driving growth, with around 35% of adults saying they have read a lot about huge price rises while 15% say they have been encouraged to buy by friends or family.

Spike Lee isnt the only celebrity to lend his star-power to cryptocurrency ads.

In the past, crypto companies had been used to marketing their products on pockets of the internet Telegram groups, online chatrooms and invitation-only forums. But as Bitcoin hit headlines, large investors like Tesla and Square backed various Coins, and financial giants like BNY Mellon, Visa and Mastercard revised their policies to support crypto projects, the crypto sector began to experiment with mainstream advertising. And their marketing pockets are deep if the calibre of celebs they've signed on to front major ad campaigns is anything to go by.

Actor Neil Patrick Harris has bragged of the benefits of being an early Bitcoin investo for a CoinFlip campaign, Alec Baldwin has mocked those who think trading crypto on Etoro should be anything other that quick and easy, while Tom Brady and Gisele Bndchen have become brand ambassadors for FTX to encourage adoption of the digital currency.

These companies are also spending big on digital advertising, specifically with social media influencers.

Internet sensation Kim Kardashian West promoted Ethereummax a so-called alternative-coin, or alt-coin, to the more established Bitcoin to her 228 million Instagram followers last month.

Over on TikTok, young stars Charli and Dixie DAmelio turned their combined 169 million followers attentions to cryptocurrency exchange Gemini as part of a sponsored campaign. In fact, the use of influencers by crypto companies on TikTok was so widespread they were given the moniker Fintok advisors.

But concern has been mounting within the walls of advertising regulators over the lack of scrutiny given to cryptocurrency ads, especially those targeting a young and financially naive audience.

The Advertising Standards Authority (ASA) in the UK recently said that it would be taking a more serious look at any crypto advertising. It came following the ban of an OOH campaign from UK-based exchange Luno, which ran a series of ads reading: If youre seeing Bitcoin on the Underground, its time to buy.

The watchdog said it plans to offer guidance for companies in the coming weeks, and is considering whether further action is needed around social media influencers promoting investments in the space without disclosing enough about the risks.

Further afield, the Advertising Standards Council of India (ASCI) said this week that it was looking into the rise of crypto ads after identifying it as an emerging area of concern.

But its slow progress. Arguably too slow for the fast paced nature of this sector, where scams and fraud are all too common.

It is inevitable that digital asset investments and crypto currency ads in particular will face greater scrutiny and tighter regulation. Its really a case of slow regulators catching up with fast-developing technology and greater public awareness, says Rafe Blandford, chief product officer at Digitas UK .

Focus is sharper on this sector because of the associated consumer risk with any investment instrument, especially in what currently feels like a Wild West atmosphere. Because country by country legislation can be slow, we can expect to see ad networks enacting their own policies and self-regulation.

Atomic London is an advertising agency that counts Etoro a trading platform that lists numerous cryptocurrencies among its clients.

The agencys chief executive Jon Goulding said he is in no doubt that a clamp down in crypto advertising is coming. However, he raised concerns over how effective it would be when there remains no official regulation by the Financial Conduct Authority (FCA), agreeing with Blandford that ultimately well see a network-level stance taken, rather than anything government mandated.

"With most crypto currencies not regulated by the FCA, how are consumers really going to be protected?, says Goulding. It comes down once again to whether digital and social media platforms will self-regulate and block crypto-advertisers from accessing their inventory and not simply whether there is an arbitrary warning, you could lose all of your money as a small print alongside advertising messages.

But rather than a move to stricter regulation of crypto advertising, it appears some digital and social platforms are slowly opening up to it.

Facebook which owns Instagram introduced a harsh crackdown back in 2018 with a blanket ban on crypto companies using its ad product. It has since lifted those restrictions to allow some adverts from pre-approved brands, and has no policy on its site in regards to influencers promoting crypto.

Like Facebook, Google had also previously taken a firm stance on crypto ads in an effort to clamp down on scams. But it appears to be loosening those restrictions for crypto exchanges and wallets, with reports emerging that it has invited potential advertisers to apply for commercial opportunities this month ahead of a change in policy in August.

Given the track record of those platforms I dont hold out much hope that theyll suddenly start clamping down on it, says Goulding. Ironically, when going on to digital publishers sites to look at articles relating to the ASA banning cryptocurrency advertising, the first pop up ad was for a cryptocurrency.

TikTok, however, is getting tougher. Earlier this month it updated its content policy to ban among other things influencers from promoting cryptocurrency.

Aside from the platform, the ability for crypto brands to market to the masses may also come down to the ethical values of the advertising agencies they want to employ.

Many agencies have committed to AdNetZero to help the industry tackle the climate change emergency. Spearheaded by the Advertising Association, its aiming to reduce the carbon impact of developing, producing and running UK advertising to real net zero by end 2030 and asking agencies to commit to make practical changes in the way they run their advertising operations.

The environmental impact of crypto currencies is significant. Between start of 2016 and mid-2018 its estimated that crypto mining was responsible for up to 15 tons of carbon dioxide emissions. The most prominent crypto currencies Bitcoin, Ethereum, Litecoin and Monero used more electricity in 2017 than Ireland or Hong Kong, says David Edwards, chief customer officer at AMV BBDO, suggesting that agencies may need to take a stand on bringing cryptocurrency brands on as clients.

Its estimated that for every $1 of Bitcoin value created it was responsible for creating $0.49 in health and climate change otherwise known, I think, as cryptodamages. It seems sensible that there should be tighter advertising regulation until cryptocurrencies are subject to proper global regulations with all the checks and balances in place regarding personal and environmental protections.

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Are the walls closing in on cryptocurrency ads? - The Drum

To continue its role as an educational leader in blockchain and cryptocurrency, the iSchool will host the First Syracuse Blockchain and Cryptocurrency Research Workshop from August 16-18. The workshop, hosted by Syracuse University professor Lee W. McKnight, will bring together and recognize ongoing diverse research on blockchain and cryptocurrency.

Theres daily media noise around the whole space of blockchain, cryptocurrency, and NFTs, explains McKnight. We want to ignore the noise and ensure theres real research substance to the event. Some may dismiss cryptocurrencies as fraud. And while there are cryptocurrency frauds around, there are also legitimate research questions and student employment opportunities.

The iSchool has positioned itself at the forefront of blockchain and cryptocurrency research and education in recent years by offering the first blockchain management course, which is now standardized as IST 408 for undergraduates, and offered online and in-person for masters students. Through this course, students participate in hands-on blockchain and cryptocurrency research projects of their own creation. Many students and faculty associated with WiTec, the Worldwide innovation Technology entrepreneurship club, and the newly formed Cryptocuse club have engaged in related research, which the workshop will highlight.

One workshop objective is getting an ongoing dialogue going between the academic community, the business community, and government about cryptocurrencies and blockchain innovation and policy, says McKnight. The various round tables will provide a way for dialogue, while research paper presentations and student blockchain project demos will be, for all of us, leading-edge learning opportunities and may help set the direction for further research.

Attendees will have the opportunity to learn from some of the biggest names in blockchain and cryptocurrency, includingCoinmint, which operates the largest digital currency data center in North America -operating sustainably on environmentally-friendly hydro-power provided by NYPA. They can also enjoy sessions on blockchaining cyber-physical communities, the cryptocurrency mining industry, and blockchain law, policy, and regulation research.

Confirmed keynote speakers include Professor Steve Lupien from the University of Wyoming Center of Blockchain Excellence, Professor Ian Taylor from the University of Notre Dame and SIMBA Chain, Dr. Naseem Naqvi, Founder of British Blockchain Association and University Professor Carl Schramm.

Workshop sponsors includeSimba,Coinmint,VMware, and theSyracuse University Renee Crown University Honors Program.

Registration for this event is free. Attendees can attend sessions in-person at 111 Hinds Hall or via Zoom. In-person capacity is limited. Visit theevent websitefor a complete schedule and a list of speakers.

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iSchool to Host 1st Syracuse Blockchain and Cryptocurrency Research Workshop - iSchool | Syracuse University - Syracuse University News

Payments giant Mastercard has launched a new, global program for cryptocurrency startups. Seven crypto companies have already joined the program. Together with Mastercard, they will work to expand and accelerate innovation around digital asset technology and make it safer and easier for people and institutions to buy, spend and hold cryptocurrencies and digital assets.

As a leading technology player, we believe we can play a key role in digital assets, helping to shape the industry, and provide consumer protections and security. Part of our role is to forge the future of cryptocurrency, and were doing that by bridging mainstream financial principles with digital assets innovations.

What do you think about Mastercards new program for crypto startups? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Mastercard Launches Global Program to Help Cryptocurrency Startups Scale Their Innovations Featured Bitcoin News - Bitcoin News

A representations of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken May 19, 2021.

Dado Ruvic | Reuters

The price of bitcoin dropped below $30,000 late Monday night for the first time since Jun. 22, dragging other digital coins lower with it.

Bitcoin is trading in the $29,000 range, about 3% lower on the day, according to Coin Metrics. Ether is down 1.25% and XRP fell 4%. Even with the plunge bitcoin is up 2.3% for the year, according to CoinDesk data. Ether and XRP are both up about 140% for the year.

The plunge came amid news that the New Jersey Attorney General issued a Cease and Desist Order against the New Jersey-based crypto services firm BlockFi, ordering it to stop offering interest-bearing accounts, according to Forbes and later confirmed on Twitter by the company CEO.

It also came after a big sell-off in global stock markets Monday, when the Dow Jones Industrial Averagehad its worst day since last October, though the markets reclaimed much of their losses Tuesday.

"There's been a broad sell-off in global markets, risk assets are down across the board," Annabelle Huang, partner at cryptocurrency financial services firm Amber Group, said.

There are "concerns of the quality and strength of economic recovery" and "broader risk assets turned weaker including high yields," Huang said. "Coupled with recent BTC (bitcoin) weakness, this just sent crypto market down further."

At one point early Tuesday, about $89 billion was wiped off the entire cryptocurrency market in a 24-hour period. Since bitcoin's all-time high of nearly $65,000 in mid-April, its price has plunged over 50%.

Regulators around the world are also looking more closely at the crypto space.

Binance, the world's largest cryptocurrency exchange, last month was barred by U.K. authorities from carrying out any regulated activities in the country. Regulators in Japan, Canada and Thailand have also issued warnings about Binance.

"In general we're seeing more regulatory focus on crypto and bitcoin," said Vijay Ayyar, head of business development at cryptocurrency exchange Luno.

Bitcoin's fall below $30,000 could be important, according to Ayyar, who said the sell-off could go lower to test the $22,000 to $24,000 level.

From then on, bitcoin could trade in a range.

"I would see bitcoin between 20-40K ($20,000 to $40,000) for a while now before any bullishness returns," Ayyar said.

Kinetic Capital's Chu also sees potential selling ahead.

"Q1's crypto market momentum has stalled and is threatening further reversal potentially below the $25K levels," Chu said.

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Bitcoin drops back below $30,000, heads toward new low for the year - CNBC

So, who will be watching you?

A virtual currency guidance and advisory issued by the U.S. Treasury Departments anti-money laundering (AML) unit on June 30, 2021 clarified regulatory expectations, riled some cryptocurrency players and signaled a potential new global standard for combating financial crime.

The statement added that the guidance does not establish any new regulatory expectations and consolidates current FinCEN regulations, guidance and administrative rulings. FinCEN has broad international reach to any business doing substantive business with U.S. persons and therefore international businesses need to be paying attention if they source cryptocurrency from U.S. exchanges or interact with U.S. consumers.

Any time FinCEN issues an advisory, compliance officers in both banks and virtual currency companies will spend a fair amount of time over the next few days reviewing the advisory in the context of their businesses and customers.Concerns include another round of bank account closures, not because customers are engaging in illegal activity, but because compliance officers and managers lack an understanding of the technology underlying cryptocurrencies as the easy way out rather than invest the time and effort to learn more about the space.

Although owners of blockchain based investments most commonly hold cryptocurrency, blockchain technology is expanding into non-currency areas.In both, however, there are risks mainly because 1) estate planners and family members are ill-informed about the presence and nature of blockchain assets, 2) clients fail to realize that wills and trusts must have specific language to allow Personal Representatives and Trustees to manage those assets after incapacity or death, and 3) the regulatory environment, taxation, reporting, application if intestacy laws and other issues have yet to be resolved.

Traditional planning entities also have a hard time owning cryptocurrency, especially if there is a fiduciary duty owed to beneficiaries to prudently invest assets. Without specific language, a trust or other entity will not be able to hold cryptocurrency, but if that language is written too broadly, the fiduciary may be exempt from damages due to willful neglect. Also, cryptocurrency is treated as property rather than as currency by tax authorities for tax purposes meaning that the fair market value is set by conversion into the taxing authoritys currently, that is U.S. dollars for the IRS, at a reasonable exchange rate and transactions involving cryptocurrency are subject to the capital gains tax regulations. This can result in the cryptocurrency being taxed at one value in one country and another value in another country.

On top of all this, care needs to be taken to preserve the benefits of cryptocurrency. Cryptocurrency is highly secure, but that security is in jeopardy if the private key or seed phrase is carelessly recorded.With the right private key or seed phrase, anyone can access the cryptocurrency, so planning and procedures have to include how to secure this information. Like cash, cryptocurrency is not traceable. There is no electronic or paper trail linking the parties together in a transaction involving cryptocurrency.To preserve that privacy, you will need to plan that other documentation in the transaction does not reveal these identities, or at least that information is privileged. Shorter transfer delay and lower costs.Unlike hard currency, transferring cryptocurrency takes only moments and there are few, if any, transfer costs.

So, what to do? First, educate your estate planner and family about any blockchain based assets, especially cryptocurrency, you own. If the value of those assets exceeds $10,000, and the assets are in custody with a fiduciary or institution that is offshore Make sure that you are also reporting that investment annually and that the custodian that holds the assets has the capacity to invest the time and effort required to comply with the myriad changes as they occur.

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Update On Planning For Bitcoin And Other Cryptocurrency - Forbes

Cryptocurrency Prices on July 20: Bitcoin's price is currently $31,413.42 and its dominance is currently 46.79 percent, an increase of 0.63 percent over the day

July 20, 2021 / 07:45 AM IST

Cryptocurrency prices continued to be in the red on July 20. The global cryptocurrency market capwas $1.23 trillion, a 4.34 percent decrease over thepreviousday, while the total crypto market volume over the last 24 hourswas $57.25 billion, which makes a 16.38 percent increase.

The volume of all stable coins was $47.23 billion 82.49 percent of the total crypto market 24-hour volume. Bitcoin's price was $31,413.42 and its dominance is currently 46.79 percent, an increase of 0.63 percent over the day.

Days after Ethereum co-founder Jackson Palmer slammed the cryptocurrency industry in a series of tweets, another crypto entrepreneur and co-founder of Ethereum Anthony Di lorio has said that he is quitting the industry. The reason? Partially due topersonal safety concernsamong other things, Bloomberg reported.

The 48-year-old Canadian has had a security team since 2017. Di lorio said the crypto industry has a risk profile I am not too enthused about, adding: I dont feel necessarily safe in this space. If I was focused on larger problems, I think Id be safer.

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Cryptocurrency Prices Today on July 20: Bitcoin, Ethereum in red, Polkadot plunges over 9% - Moneycontrol.com

Love him or hate him, Elon Musks grip on the cryptocurrency market makes an impact. The Tesla and SpaceX leader changed his display picture on Twitter which made Dogecoin jump by 10%. Whats the hullabaloo about? Elon Musks new photo is his headshot with Doge, Dogecoins symbolic Shiba Inu, reflected on his sunglasses. Seems like an average fanboy photoshop, right?

Dogecoins co-founder, Jackson Palmer, recently returned to Twitter and showed his dissatisfaction with the current cryptocurrency market. In his tweet, he explained how cryptocurrencies have enabled free for all capitalism. The day after this tweet, Elon Musk started a conversation about his son holding the Doge like a champ, indicating his favoritism for the cryptocurrency.

When an influential person comments against a cryptocurrency, the market experiences a dip. But despite the comments on cryptocurrencies (which includes Dogecoin), Jackson Palmer could make an impact on the crypto world, which Elons image spoke a thousand words and caused the value of a Dogecoin to rally by 10%.

Wouldnt you be happy if an external factor was making the price of your cryptocurrency go up? Well, Dogecoins other co-founder, Billy Markus was not pleased. His tweet highlighted Billys apprehensions about Dogecoins value as Musk-hyped Dogecoins all-time-high faded away in a short period of time. In May 2021, Dogecoin grew by more than 15,000%, from US$0.004 to US$0.70. Soon, the hype died down and Dogecoin lost almost 70% of its value.

When Dogecoin was created, its intention was to be a joke. But thanks to Elon Musk, Dogecoins value shot up. He called himself the Dogefather and thus began the tale of Elons influence. The billionaire CEO did receive heavy criticism from market experts for creating volatility with his comments and people went to the extent of creating a token to spread this message called StopElon.

One can say that Elon Musk is just trying to be humorous with his antics, but the fact that he has the power to move markets seems unfair to many investors. After all, can you imagine your investments being controlled by one whacky billionaire? On a grander scheme of things, the cryptocurrency market gets both good and bad out of it.

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Dogecoin Witnesses Another Cryptocurrency Hype, Thanks to Musk - Analytics Insight

JPMorgan says a lot of its asset and wealth management clients think cryptocurrency is an asset class and they want to invest in it. Our job is to help them to put their money where they want to invest, said the CEO of J.P. Morgan Asset & Wealth Management.

Mary Callahan Erdoes, J.P. Morgan Asset & Wealth Managements CEO, talked about her firms approach to cryptocurrencies in an interview with Bloomberg Wealth, published Tuesday.

JPMorgan Chases asset and wealth management line of business is one of the worlds largest investment managers and private banks, with $3.4 trillion in client assets.

Erdoes, who joined the firm 20 years ago, was asked what she would do if a client came to JPMorgan and said that they wanted to invest in cryptocurrency. Specifically, she was asked: Do you say you shouldnt do it? do you facilitate it? or are you still evolving your position?

The chief executive replied by first commenting about blockchain technology. Blockchain technology its very real and its changing all of the ways that we digitally interact in the different financial markets, she opined.

The J.P. Morgan Asset & Wealth Management CEO proceeded to talk about cryptocurrencies. Digital currencies are new, and in general digital currencies are being debated as to whether they are an asset class or not, she described, elaborating:

A lot of our clients say thats an asset class and I want to invest. Our job is to help them to put their money where they want to invest.

Its a very personal thing, Erdoes continued. We dont have bitcoin as an asset class per se, and time will tell whether it has a store of value. But the volatility that you see in it today, it just has to play itself out over time.

Her comments echoed what JPMorgan CEO Jamie Dimon said in May when he personally advised people to stay away from cryptocurrency. However, he noted, That does not mean the clients dont want it I dont tell people how to spend their money, regardless of how I might personally feel about something.

While JP Morgan may not currently see cryptocurrency or bitcoin as an asset class, rival investment bank Goldman Sachs said in May that bitcoin has become an investable asset. The firm explained, Clients and beyond are largely treating it as a new asset class, which is notable its not often that we get to witness the emergence of a new asset class.

The CEO of Blackrock, the worlds largest asset manager, said in April: I am fascinated by it [cryptocurrency] as an asset class I do believe this could become a great asset class.

What do you think about the comments by the JPMorgan executive? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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JPMorgan Says a Lot of Clients See Cryptocurrency as Asset Class and Want to Invest Featured Bitcoin News - Bitcoin News

Cryptocurrency has never appealed to me.

When the crypto-bro making me my coffee enthuses about how he has turned $100 into $10,000 with his smart trades my response is a resounding"meh".

As a woman in my early 40s I'm pretty much as far from the typical crypto-enthusiast demographic as you can get, and franklymy to-do list already feels pretty full without adding 'learn about emerging financial technology that may take over the world' to it.

I'm naturally sceptical, so anything that is touted as the next big thing, or instant way to multi-millions, tends to result in a highly-raised eyebrow.

And in much the same way as I don't bet on the Melbourne Cup because I hate throwing money at things which I don't know enough about, putting money into crypto has always felt more like gambling to me than investing.

But interest and the number of people investing in cryptocurrency has grown exponentially over the last year. The ATO says around 600,000 Australians have invested in cryptocurrencies in recent years (though other estimates are much higher).

According to a June survey by market comparison site Finder (whose founders also run a crypto exchange) a third of Gen Zs now own digital currencies, twice as many as in January.

Cryptocurrency is clearly here for the long term, and as I frequently report on it in my job as ABC News Breakfast finance presenter, I need to learn about it. And the best way I know to do that is to put some skin in the game.

I'm going to spend $100 of my hard-earned cash on a three-month experiment with cryptocurrency, and see where I end up.

I don't know if Bitcoin is going to rule the world, and I don't want to bet that people will be willing to pay more for bitcoins in future than they do today.

First problem: I have no idea how to start.

According to that same survey by Finder, that was the biggest impediment for 22 per centof people who were interested in investing in crypto.

I don't want to go to one of the YouTube get-rich-quick 'experts'(of whomthere are about a million, many of which are sponsored by smaller or alt-coins) so instead I turn to Professor Ellie Rennie of RMIT in Melbourne. She's a crypto researcher at their Blockchain Innovation Hub, and as an early investorhas lots of experience.

I like her first piece of advice: "It's very easy to lose a whole bunch of money."

"Never, ever spend more than you can afford to lose."

Supplied: Professor Ellie Rennie.

Ms Rennie helps me to take the first step:setting up an account on a trading platform. She uses an Australian-based one, but there are literally hundreds to choose from.

You can go to a comparison site and see which one suits you best they all offer different fees for trades, different cryptocurrencies, and different options for ways to put in your own money, like POLi, PayID and bank transfer.

I have to enter personal details and my driver's license for ID, and that's followed up with a call a day later from the trading platform to verify my identity before they will set up my account, which makes me feel secure.

The brother of a man scammed out of more than $400,000 has issued a warning to people to be more aware of bogus bitcoin traders.

Ms Rennie recommends setting up a digital wallet for when you are trading bigger chunks of money as one of the big risks with cryptocurrency is someone hacking into your trading platform and stealing your coin.

"Security is the most important thing when it comes to cryptocurrency. You don't want to keep your cryptocurrency on an exchange," she says.

Digital wallets are secure places you can put your cryptocurrency into, much like you would put cash into a physical wallet.

That said, Ms Rennie and I agree that because I'm only trading small amounts I don't need to bother with this yet, but as soon as you get amounts you'd be sad to lose, this is a critical step.

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Bitcoin is obviously the biggest and best known coin, and there are literally thousands of others, but they come with a warning.

"They all have different levels of security, and we also don't know how long they will stick around," Ms Rennie says.

"You need to be a bit cautious, particularly when you are going into things that look cheap on these platforms. They may disappear."

In the end we settle on the second biggest coin, Ethereum, for the stability of its platform. I also like the idea of it because it is in the process of changing how it operates: it will soon cut down its energy use by 99.5 per cent, according to a blog post from the project.

Bitcoin famously has a carbon footprint the equivalent of Portugal, so the idea of not contributing to that appeals.

Ethereum is trading at $2,804.15, so I after I transfer my $100 to the trading platform, for a small fee, I am now the proud owner of about 1/28th of an ether (the coin of the Ethereum blockchain).

Is rent money really "dead money"? And do you really need to give up your daily coffee to get ahead?

That was a month ago, and I would love to tell you that since then I have learned all about cryptocurrency and made a pretty penny in the process.

That is not what has happened.

Since then I have been on leave with my family, had a couple of big stories, bought a dog and done nothing with my coin. And Ethereum has dropped to $2,578.67.

Turns out just buying crypto isn't enough to really be invested in it, if you know what I mean.

So my new resolution is to spend at least an hour a week learning about it, and to actively manage my investment more.

Ms Rennie emphasises that research is key to a successful experience with digital coin.

She recommends newsletters from Messai, EthHub and Spencer Noon, and websites Coindesk, The Defiant and Decrypt.

There are also many crypto podcasts. Ellie's favourites are Laura Shin's Unchained and Bankless.

These are just her choices, and as with any financial decision, you should do your own research and always consider your own circumstances before making any investment.

To be honest, it feels a bit overwhelming, but also necessaryif I'm serious about understandingcrypto currency.

This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances.

Madeleine Morris is ABC News Breakfast's finance presenter.

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I've just started investing in cryptocurrency. Here's what I've learned - ABC News

For many, cryptocurrency, blockchain and non-fungible tokens (NFTs) are new concepts that some may first associate with wealth, technology or digital artwork. However, while interconnected, each of these terms have a distinct purpose and role in our economy.

Vivian Fang, an associate professor in the Carlson School of Management, is available to explain what these are, what they are for, and what could be next for cryptocurrency, blockchain and NFTs.

Q: What is blockchain technology?Prof. Fang: A blockchain is a multi-party, data-sharing platform. In simple terms, new data can only be uploaded if the participating computers on the network agree. Existing data can not be edited. In more technical terms, a blockchain is a distributed, append-only ledger of provably-signed, sequentially-linked and secured transactions (e.g., through encryption) thats replicated across a network of computers. Updates are determined by a software-driven consensus.

Q. What are cryptocurrencies and non-fungible tokens (NFTs) and how do they work?Prof. Fang: There are three key characteristics of cryptocurrencies:

Cryptocurrencies work similarly to government-issued currencies that are not backed by a commodity, such as the U.S. dollar, because they can be used to buy goods and services. However, no government authority is needed to issue cryptocurrencies and no central agency is needed to clear transactions (e.g., banks and credit card companies).

NFTs are tokenized, digital work. You can think of NFTs as digital collectibles, or crypto alternatives to antiques or baseball cards. NFTs are created to authenticate ownership of creative digital work because transactions of NFTs and their ownership are recorded on blockchain (mostly Ethereum).

Q: In business, what roles do cryptocurrencies and blockchain have?Prof. Fang: As more companies start to expand into the crypto space, customers can now use cryptocurrencies to pay for goods and services at millions of merchants where PayPal is accepted after the online payment giant introduced its Checkout with Crypto service. Furthermore, an increasing number of companies, such as Tesla and MicroStrategy, are starting to invest directly in crypto assets. As a data sharing platform, blockchain has a much broader application in business. If used right, an enterprise blockchain can help save time, cut cost and mitigate risk.

Q: How do cryptocurrencies have value?Prof. Fang: Whether cryptocurrencies have value is perhaps the toughest question to answer. While I can give you some arguments about whether cryptocurrencies do or do not have value, it would only be scratching the surface of a complex system.

On one side of the argument, cryptocurrencies are of great value to libertarians and cypherpunks. They have long yearned for a currency that is free from government intervention and truly native to cyberspace. Cryptocurrencies are also of value because they can now serve as a medium of exchange, and they are anti-inflationary by nature.

However, on the other side, most cryptocurrencies have no intrinsic value. This is because they do not generate cash flows nor do they have stable stores of value (i.e., a currency that can maintain its relative value over time without depreciating). For cryptocurrencies to move toward mainstream acceptance, a certain measure of price stability needs to be achieved.

Q: For those who arent active investors or lack sufficient understanding of these areas, why should they pay attention to what happens?Prof. Fang: The distributed ledger technology that bitcoin builds on is closer to everyday life than one may think. Take Walmart, for example, who required all suppliers of its leafy greens and farm products to join its blockchain by 2019. Customers are effectively relying on the technology for food safety. Also in 2019, blockchain-as-a-skill overtook major skills such as cloud computing and artificial intelligence, and it became the number one hard skill in demand among global employers, according to LinkedIn Learning. This trend will likely continue.

Vivian Fang, Ph.D., is an associate professor and the Honeywell Professor in Accounting in the Carlson School of Management. Along with expertise in cryptocurrency and blockchain, Fangs research lies at the intersection of corporate finance and financial accounting, with a focus on the real effects of trading in financial markets, managerial myopia, executive compensation, and fraud.

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Talking cryptocurrency, blockchain and NFTs with U of M - UMN News