The 3rd Taipei Blockchain Week (TBW) will be grandly held from December 12 to 14, 2024, at the Songshan Cultural and Creative Park in Taipei, with the theme 'Onboard', dedicated to guiding the public into the Web3 realm.

This year's event scale has been further upgraded, covering 5 major warehouses in the main park and surrounding activities, expecting to welcome over 6,000 domestic and international participants to join in.

Highlights of this year include keynote conferences and a hackathon. The hackathon offers over $200,000 in rewards, including $25,000 from the hackathon's title sponsor Solana, $155,000 from BNB Chain, $10,000 from AI sponsors 0G and Aethir, as well as support from organizations like Avalanche and CipherBC.

Taipei Blockchain Week is co-hosted by BuZhiDAO, Gen3, and TABEI, leveraging community power to create a diverse and rich Web3 experience. Building on last year's success with over 100 surrounding activities, this year will further expand, carrying the 'Onboard' mission to introduce the Web3 ecosystem to the public, educate on mainstream applications, and jointly promote blockchain popularization.

TBW 2024 will gather top blockchain ecosystems like Solana, Sui, Tron, and Avalanche to join the celebration. These top sponsors will lead the event, covering topics such as decentralized finance (DeFi), decentralized autonomous organizations (DAO), venture capital, and showcasing the most advanced and innovative technological applications in Web3.

Solana: As the title sponsor of the hackathon, it will showcase projects like Zeus, Bonk, and Genopets, demonstrating its thriving ecosystem. Sui: As the conference's title sponsor, it will delve into growth strategies rapidly expanding within the blockchain ecosystem. BingX, Technium, and Tron will focus on topics like exchanges, DeFi, and DAO, bringing industry dynamics and exclusive insights.

The week of TWB 2024 is expected to be lively. Surrounding activities hosted by Taiwanese startups and multinational collaborations connecting global industry leaders will reflect and showcase Taiwan's potential as a global blockchain ecosystem development hub.

Event Sponsors:
Title Sponsors: BingX, Solana, Sui, Technium, Tron
Gold Sponsors: Binance, Bitget, MEXC, OKX, CipherBC, Flipster
Silver Sponsors: Avalanche, 0G Labs, Scallop

🎉 The Web3 craze is sweeping the globe, get ready for an unprecedented party experience! 🌌

~This post is sponsored by Let’s Degen! Leave a comment in the Whale Time community and on this post for a chance to win a ticket and entry for one lucky fan in a live draw on 11/30!

✨ The world's first Web3 eDM World Tour is grandly launching!
Top DJs, over 500 global KOLs, and thousands of trendsetters will **ignite a perfect fusion of technology and music** in Macao.📡🎶

📍 Chapter 0 - MACAO
【Let’s Degen 2024 Macao🪐】

⏰ Time: December 7, 2024 (Saturday) 18:00 - 00:00

🏢 Venue: Macao Lisboa | Lisboeta Macao

🌟 Event Highlights:

🔹 Top-notch audiovisual experience — Feel the shocking rhythm of eDM, top DJs unleash musical energy! 🎧🔥
🔹 Future technology exploration of Web3 — Immersive experience with giant tech installations, feel the cutting-edge digital universe! 🤖🚀
🔹 Mysterious airdrop surprises — Lock your wallet, participate on-site for a chance to receive **exclusive NFTs and limited benefits**! 🎁✨
🔹 Social frenzy incoming — Global KOLs gather, interact closely with over 500 industry leaders and thousands of trendsetters, creating infinite opportunities! 🌐🤝

🎨 Music, art, and technology perfectly blend, creating limitless possibilities!

In this audiovisual feast, break free from traditional forms and explore the Web3 universe in the most 'Degen' way! Play while earning, this is a high-energy party you can't miss!

🌐 Learn more now, seize the opportunity to become a pioneer of the era:

📢 Inviting you to witness the epic chapter of Web3's launch!🌟
Are you ready? This winter, let's Degen together!🔥🎉

WhaleVest｜WhaleVest 100 Compass｜Black Swan Event

What is a black swan?

The term black swan first appeared in the best-selling book "The Black Swan Effect" published by New York University professor Nassim Nicholas Taleb in 2007. It means "the probability of occurrence is extremely low and unpredictable, but it is still events that occurred”.

The origin of black swans comes from before the 17th century. Europeans thought that all swans were white. It was not until 1697 that the first black swan was discovered in Australia, completely breaking people's inherent understanding of swans.

In his book "The Black Swan Effect", Taleb made three clear definitions of black swans:

1. The incidence rate is extremely low

The reason why such events have never happened is because the probability is so low that there is almost no possibility of predicting it in advance.

2. Severe impact

Once an incident occurs, it will have a strong impact on the status quo, and the impact may last for decades.

3. Hindsight

Since it has never happened before and there is no experience to follow, it is only after the event that people can come up with various explanations for the event.

For example, events such as the September 11 terrorist attacks in 2001 and the COVID-19 epidemic in 2020 are all "black swan events" that are unpredictable and have a major impact.

The story of the 312 black swan incident

1. Background and triggering factors:

The outbreak and spread of the COVID-19 epidemic around the world has caused huge impact and panic on the global financial market. Bitcoin has been falling since mid-February 2020, and March 12 became the "Black Thursday" of the cryptocurrency market. Both U.S. and European stock markets suffered heavy losses on this day, triggering investors' concerns about a liquidity crisis and economic recession, and funds were withdrawn from high-risk assets.

2. Global stock market crash:

The U.S. stock market triggered its third circuit breaker mechanism, and the Dow Jones index plummeted nearly 10%, the largest one-day decline since 1987. European stock markets also suffered heavy losses, with the German DAX index and the British FTSE 100 index both falling by more than 10%.

3. Cryptocurrency market collapse:

Bitcoin fell sharply after the US stock market circuit breaker, falling from US$7,800 to US$5,555 in just one hour, a drop of more than 28%. In the next few hours, Bitcoin continued to decline, hitting a low of around $3,800, a drop of more than 52%.Other mainstream cryptocurrencies such as Ethereum, Litecoin, EOS, etc. also plummeted, and the market was bleak.

4. Market reaction and impact:

The speed and magnitude of the plunge are rare in cryptocurrency history. More than US$7 billion in liquidations occurred on global cryptocurrency exchanges, and the total market value fell from US$228 billion to less than US$120 billion, almost halved.

The causes of the 312 black swan incident

From both a macro and micro level, the 312 black swan event had a profound impact on the cryptocurrency market:

Macro level:

1. The superimposed effect of the global financial crisis and the COVID-19 epidemic: The global financial market is facing major challenges, and the impact of the COVID-19 epidemic on the economy has led to a slowdown in global economic growth and increased uncertainty. Large-scale stimulus and monetary easing measures by governments and central banks have triggered excess liquidity and currency depreciation, further exacerbating market pressure and volatility, and also affecting sentiment and expectations in the cryptocurrency market.

Micro level:

1. Giant whale shipment:

Large investors or institutions may choose to reduce their positions when the market panics, bringing huge selling pressure to the market.

2. Leverage Liquidation:

Speculators and asset managers used leverage to operate quantitatively and were unable to withstand the margin pressure when prices fell, triggering a large number of liquidations and pushing prices down further.

3. Deposit is not smooth:

Factors such as Bitcoin network congestion, USDT premium, and insufficient over-the-counter deposits have led to a lack of buying support in the market.

4.DeFi selling pressure:

Large-scale liquidations on decentralized lending platforms triggered a sell-off in collateral, exacerbating selling pressure in the market.

A blow to market confidence:

The 312 black swan event caused serious damage to investor confidence. Many people suffered heavy losses and even lost confidence and exited the market. This has led to a decrease in activity and liquidity in the cryptocurrency market, while also affecting market innovation and development.

Changes to market structure:

The event prompted structural adjustments and improvements in the cryptocurrency market. Some exchanges and platforms lose users due to poor performance, while other platforms gain more users due to stability. At the same time, some new products and services emerged or were verified during this crisis, increasing the diversity and choices of the market.

Implications for the future of the market:

The 312 black swan event provides lessons for the future development of the cryptocurrency market. The market is young and immature, with risks and problems, but it is also full of opportunities and potential. Investors should remain rational, make independent judgments, and use leverage and lending tools with caution. In addition, we should adhere to our beliefs, avoid blindly chasing short-term interests, and be committed to the long-term healthy development of the market.

The 312 black swan event is a major event in the cryptocurrency market, reminding us to respond to market fluctuations with caution and continue to learn and improve. This incident will also push the market to develop in a more stable and mature direction.

Register now for the world’s largest exchange to enjoy the epic bull market: https://www.binance.com/zh-TC/join?ref=19772816

WhaleVest｜WhaleVest 100 Compass｜Types of Mining Machines

What is a mining rig?

A miner is a computer system specifically designed to mine cryptocurrency, essentially solving complex mathematical equations to confirm transactions on the blockchain. There are many different types of mining machines on the market, and they all have their own advantages and disadvantages.

There are many well-known mining machine manufacturers on the market, the most popular of which include Bitmain, Canaan, Webit, Innosilicon, Ebang and Xtronyou. These companies offer a range of mining rigs, each with specialized capabilities and features. It’s important to do thorough research, which will require you to compare the product specifications and equipment costs of various brands and models to determine which one best meets your mining needs.

Type of mining machine

With the continuous adjustment of mining difficulty, the demand for higher efficiency and profitability has driven the continuous evolution and iteration of mining machines.

CPU miner

A CPU miner is a software program that uses a computer’s central processing unit (CPU) to mine cryptocurrency. Bitcoin and other cryptocurrencies could first be mined using computers; however, as the difficulty of mining increased, more efficient methods of GPU and ASIC mining were developed, causing CPU mining to lose its appeal. CPU mining is relatively easy to set up, but it is not efficient and cannot mine currently popular cryptocurrencies.

GPU miner

GPU mining already existed when Bitcoin was first launched in 2008, at a time when CPU mining could still offer certain rewards. However, due to slower processing speeds of CPUs, mining becomes more challenging. With the popularity of Bitcoin, people began to look for more efficient mining methods, and GPU mining emerged.

This process involves using the specialized processing power of a graphics card to perform the complex calculations required to verify and process transactions on a blockchain network. GPU mining software receives = a block of transactions and uses the parallel processing power of the GPU to solve a cryptographic puzzle. After solving the puzzle, miners receive a certain amount of cryptocurrency as a reward, which is added to their digital wallet.

FPGA miner

FPGA mining can be traced back to 2011, when Bitcoin’s computing power continued to increase and GPU mining became mainstream.However, because GPUs still suffer from some limitations, such as high power consumption and insufficient mining efficiency, people began to look for more efficient mining methods.

FPGA is a flexible and programmable chip whose circuit structure and performance can be modified through programming. This programmability makes FPGAs ideal for mining, as the mining algorithm can be programmed to optimize for higher computing power and lower power consumption. The emergence of FPGA mining technology has promoted the further development of Bitcoin mining and has become an important supplement to GPU mining.

ASIC mining machine

An ASIC (Application Specific Integrated Circuit) miner is a hardware device designed specifically for cryptocurrency mining. ASIC mining machines began to dominate the market in the mid-2010s and are currently the most popular and effective mining method. They are currently the most efficient and profitable mining equipment. The more well-known ASIC mining machine brands include Antminer, Whatsminer, Avalon, Ebit, etc. Among them, Antminer is the most popular mining machine brand with the highest market share.

How much does it cost to run a mining rig?

The costs involved in personal mining, including electricity, space rental fees, and mining rigs, can fluctuate significantly based on a variety of factors, such as market conditions, cryptocurrency prices, location, and the hardware and software used.

Electricity bills can vary based on how much power is consumed and where. For example, running the Antminer S19XP for a day at $0.09 per kWh would cost $6.48. If you can get a lower price, your energy bill will go down as well.

The type of hardware used will also have an impact on the cost of mining. For example, an ASIC mining machine may cost several thousand to tens of thousands of dollars, but GPU mining costs only a few hundred to several thousand dollars.

Renting a mining site will also increase related costs. The cost of renting space is affected by factors such as location, size of the space and current real estate market conditions. It is not easy to calculate the specific cost of mining alone. It is recommended to conduct a comprehensive study and calculate all the expenses involved before starting mining to ensure profitability.

in conclusion

The secret of mining calculations is part of the world of cryptocurrency. This technology not only supports the security and reliability of blockchain, but also affects future financial development.From the basic concepts of mining to its impact on the environment and energy, the process is fraught with challenges and opportunities. Whether you’re an investor, tech enthusiast, or someone looking for a deeper understanding of cryptocurrencies, this area deserves more exploration and research.

Register now for the world’s largest exchange to enjoy the epic bull market: https://www.binance.com/zh-TC/join?ref=19772816

WhaleVest｜WhaleVest 100 Compass｜What is cryptocurrency mining?

What is cryptocurrency mining?

Cryptocurrency mining ensures the security and decentralization of cryptocurrencies such as Bitcoin based on the Proof of Work (PoW) consensus mechanism. Mining is the process of verifying transactions between users and adding them to the public ledger of the blockchain.

Mining is a key concept in the cryptocurrency world. This process involves solving mathematical problems to verify transactions and add transaction records to the blockchain. The main purpose of mining is to ensure the security and reliability of transactions while creating new currency units. By solving complex mathematical puzzles, miners are able to verify transactions and add them to the blockchain's decentralized record.

Mining operations are also responsible for introducing new coins into existing circulation. However, cryptocurrency mining follows a set of hard-coded rules that govern the mining process and prevent anyone from arbitrarily creating new coins. These rules are built into the foundation of the cryptocurrency protocol and enforced by a complete network of thousands of nodes.

How does cryptocurrency mining work?

When a new blockchain transaction is made, the transaction is sent to a mining pool called the "mempool." The miner's job is to verify the validity of pending transactions and organize transactions into blocks.
You can think of a block as a page on the blockchain ledger where a number of transactions are recorded (along with other information). More specifically, mining nodes are responsible for collecting unconfirmed transactions from the mempool and forming them into a candidate block.

After this, miners try to convert the candidate block into a valid, confirmed block. To do this, miners use massive amounts of computing resources to solve complex mathematical puzzles. However, for each successfully mined block, miners receive a block reward consisting of newly minted cryptocurrency and transaction fees. Let's see how it works:

Step 1: Hash Transaction

The first step in mining a block is to obtain pending transactions from the mempool and submit them one by one through the hash function. Each time a piece of data is submitted through the hash function, there will be a fixed-size output, called a hash.

In mining, the hash of each transaction consists of a string of numbers and letters that serve as an identification code.The transaction hash represents all the information contained within the transaction.

In addition to processing the hash and listing each transaction individually, miners also add a custom transaction to send their own block reward. This transaction is called a "coinbase transaction" and it creates a completely new token. In most cases, a Coinbase transaction is the first transaction recorded in a new block, followed by all transactions pending verification.

Step 2: Build the hash tree

After each transaction is hashed, the hash is then organized into a hash tree, also known as a Merkle tree. A hash tree is formed by hashing transactions into pairs and then hashing them.

The new hash outputs are then organized into transaction pairs and hashed, and the process is repeated until a single hash is created. The last hash is also called the root hash (or Merkle root), which basically means all the previous hashes used to generate it.

Step 3: Find a valid block header (block hash)

The block header serves as an identification code for each individual block, indicating that each block has a unique hash. When creating a new block, miners combine the hash of the previous block with the root hash of the candidate block to generate a new block hash. They also need to add an arbitrary number called a nonounce.

Therefore, when trying to validate their candidate block, miners need to combine the root hash, the previous block hash, and the nonce and submit it all through the hash function. Their goal is to repeat this step until a valid hash is built.

The root hash and the hash of the previous block cannot be changed, so the miner needs to change the nonce value multiple times until a valid hash is found. In order to be considered valid, the output (block hash) must be less than a specific target value established by the protocol. In Bitcoin mining, the block hash must start with a certain number of zeros. —This is called mining difficulty.

Step 4: Push the mined block

As we just saw, miners need to hash the block header over and over again using different nonce values. They will repeat this process until they find a valid block hash. Miners who discover the hash then push it to blocks on the network. All other nodes will check whether the block and hash are valid, and if so, add the new block to their copy of the blockchain.

At this point, the candidate block becomes a confirmed block, and all miners will continue mining the next block. All miners who cannot find a valid hash in time will discard the candidate block and the mining competition begins again.

The cryptocurrency amount of block rewards varies between different blockchains. For example, on the Bitcoin blockchain, miners receive a block reward of 6.25 BTC (as of March 2023). Due to the Bitcoin halving mechanism, the BTC block reward amount is reduced by half every 210,000 blocks (approximately every four years).

Register now for the world’s largest exchange to enjoy the epic bull market: https://www.binance.com/zh-TC/join?ref=19772816

WhaleVest｜WhaleVest 100 Compass｜The Psychology of Market Cycles

Market psychology is a discipline that studies the impact of market participants' emotions on market trends. It occupies an important place in the field of behavioral economics, an interdisciplinary field that studies the influence of factors that precede economic decisions.

Market psychology theory believes that market fluctuations reflect the emotional states of participants, and these emotional states affect market behavior. Market sentiment dominates the market's psychological cycle, which includes expansion phases (bull markets) and contraction phases (bear markets).

In a bull market, market sentiment is usually optimistic, confident, and greedy, while in a bear market, it becomes negative, anxious, and panicked. Investor and trader sentiment has a significant impact on market prices and volatility.

Investors can use their understanding of market psychology to better judge market trends and choose the best entry and exit points. However, identifying market sentiment is not always easy as market sentiment can be affected by many factors.

Technical analysis is a commonly used method that attempts to predict future market movements by analyzing past prices and trading volumes. Some technical indicators, such as the relative strength index (RSI) and the moving average convergence/divergence indicator (MACD), can be used to gauge the psychological state of the market.

The Bitcoin market is an example of market psychology, with the 2017 Bitcoin bull run and subsequent decline showing how market sentiment can affect prices. In a bull market, market sentiment reaches its peak, while in a decline, sentiment becomes very negative.

Cognitive biases are another important concept that refer to irrational thought patterns that people are often influenced by when making decisions. Identifying and understanding these cognitive biases can help investors better respond to market fluctuations.

Overall, market psychology is an important field that helps investors better understand the markets and make more informed investment decisions.

Register now for the world’s largest exchange to enjoy the epic bull market: https://www.binance.com/zh-TC/join?ref=19772816

WhaleVest｜WhaleVest 100 Compass｜What is Bitcoin halving?

What is Bitcoin Halving?

Refers to a precoded event that occurs every 210,000 blocks (approximately every four years) in the Bitcoin protocol.

It reduces the rewards miners receive for validating blockchain transactions. This process is designed to control the issuance of new Bitcoins and maintain their scarcity, thereby ensuring a limited supply of BTC. Basically, the halving will cut the BTC rewards offered to miners in half.

In the original Bitcoin white paper published in 2008 by the pseudonymous Satoshi Nakamoto, it was stated that the Bitcoin supply was capped at 21 million. This fixed supply mechanism is to prevent inflation and mimic the scarcity of precious metals like gold. By regulating the rate at which new Bitcoins are generated, the protocol aims to create a deflationary currency with the potential to maintain its value or appreciate over time.

Since the birth of Bitcoin in 2009, Bitcoin has experienced three halving events (or “Halvenings”). The next Bitcoin halving event is expected to occur in April 2024.

The first Bitcoin halving occurred on November 28, 2012. That year, approximately 10.5 million Bitcoins were mined, with each Bitcoin worth approximately $11.

The following year, this figure increased a hundredfold. The second Bitcoin halving occurred on July 9, 2016, and the most recent halving event occurred on May 11, 2020.

As for when the next Bitcoin halving event may occur, many predict it will occur in April 2024.

Halvings therefore play a key role in controlling the rate at which new Bitcoins are introduced into circulation, thereby slowing the production of new coins over time.

When Bitcoin first existed in 2009, miners were rewarded with 50 BTC for each block they successfully added to the blockchain.​

The Bitcoin halving event occurs mainly to ensure the following factors:

To control inflation:
The Bitcoin halving curbs potential inflation within the Bitcoin system. Because when the production of new Bitcoins decreases and block rewards decrease, Bitcoin is more likely to maintain long-term price stability and value, which helps control price inflation.

Scarcity and controllable supply:
Bitcoin was created to be a rare and limited cryptocurrency.Therefore, when Bitcoin halving occurs, there are fewer Bitcoins available, thus affecting its value and supply.

What will happen to your Bitcoin after the halving?

After the Bitcoin halving event, your existing Bitcoin holdings remain unchanged. The halving process does not directly affect the number of Bitcoins you hold. However, it can indirectly affect the price of Bitcoin and every aspect of the cryptocurrency ecosystem. Here are a few reasons why the Bitcoin halving is so important and why people should pay attention:

1. Supply and demand dynamics

The supply side is constrained as the halving reduces the rate at which new Bitcoins are created. This will in turn affect the balance between supply and demand. Basic economic principles state that when supply decreases while demand remains the same or increases, the value of an asset is likely to increase. This expectation of increased scarcity often leads to a surge in investor interest and speculation about Bitcoin.

2. Market volatility

Bitcoin halvings have historically been associated with increased volatility in the cryptocurrency market. Speculators and investors closely monitored market dynamics before and after the event, trying to predict its impact on Bitcoin prices. This anticipation often triggers price volatility and increased trading activity.

3. Impact on miners

Since the reward for mining new blocks has been halved, the profitability of Bitcoin mining has been directly affected. This reduction in rewards may create challenges for miners. Miners need to evaluate the feasibility of their operations after the halving and adjust their strategies accordingly. This often results in a change in the mining landscape, where smaller or less efficient miners may be pushed out of the market, while larger miners with more resources continue to thrive.

4. Technology and community development

The Bitcoin halving is an important milestone, triggering discussion and debate within the blockchain community. It encourages developers and stakeholders to explore innovative solutions to the challenges posed by the ever-changing dynamics of the Bitcoin ecosystem. This drive for technological advancement often leads to the development of new tools, protocols, and initiatives aimed at improving the scalability, efficiency, and security of the Bitcoin network, ultimately promoting its long-term sustainability and growth.

5. Long-term investment impact

For long-term investors, the Bitcoin halving represents a critical event that emphasizes the deflationary nature of the asset and its potential as a store of value.The predictable scarcity caused by the halving mechanism positions Bitcoin as a hedge against inflation and economic instability, appealing to individuals and institutions looking to diversify their portfolios. The halving reinforces the narrative of Bitcoin as digital gold, enhancing its appeal as a long-term investment asset with the potential to significantly increase in value over time.

Get ready for the 2024 Bitcoin halving

Previous halving events have resulted in an increase in the price of Bitcoin. The first halving pushed the price of Bitcoin from $11 to $1,100, and the second halving increased the price of Bitcoin from $600 to $20,000 in 18 months. The third halving caused the price of Bitcoin to rise from $9,000 to about $30,000.

However, the circumstances of each halving may be different, and demand for Bitcoin may fluctuate wildly, especially in light of the coronavirus pandemic, the war in Ukraine, and inflation. All of these factors prove to be an economic test for even the most “stable” assets.

Register now for the world’s largest exchange to enjoy the epic bull market: https://www.binance.com/zh-TC/join?ref=19772816

WhaleVest｜100 Compass｜What is a Web3 wallet?

What is a Web3 wallet?

Web3 Wallet is a digital wallet designed for the world of decentralized finance. They serve as conduits for users to interact with blockchain networks and decentralized applications (DApps), providing a secure way to manage cryptocurrencies, NFTs, and other digital tokens.

Web3 Wallet vs. Cryptocurrency Wallet

Although the two terms are often used synonymously, not all cryptocurrency wallets are compatible with DApps and DeFi platforms. So while both Web3 and cryptocurrency wallets are used to manage cryptocurrencies.

How Web3 wallet works

Most Web3 wallets are designed to provide users with complete control over their digital assets. This means that users are responsible for managing their mnemonic phrases and private keys.

Typically, whenever you create a new Web3 wallet, you generate a unique 12 or 24 word mnemonic phrase. This is what gives you full access to your cryptocurrency wallet and its private keys (used to sign and verify transactions).

Main functions of Web3 wallet
Although certain features may vary from wallet to wallet, most Web3 wallets share a main set of features:

Multi-asset and multi-chain support: Supports various blockchain networks and digital assets, including cryptocurrencies and NFTs.

Smart Contracts and DeFi Interoperability: Promotes smooth interaction with smart contracts, allowing users to deposit and withdraw from DApps, decentralized exchanges, markets, and other blockchain-based applications.

Peer-to-peer trading: allows users to send and receive digital assets without the need for centralized services or intermediaries.

Security: A good Web3 wallet should offer strong security and implement encryption to protect the mnemonic phrase and private keys from potential threats. Some wallets also include notifications and warnings for potentially malicious websites and smart contracts.

Anonymous: Although most blockchain transactions are publicly available, users do not need to share sensitive or personal information to create a Web3 wallet.

Hosted vs. Non-hosted Web3 Wallets

1. Non-custodial wallet
Non-custodial or self-custodial wallets provide users with complete control over their assets. Popular examples include MetaMask or Trust Wallet. Non-custodial Web3 wallets are considered the safest option for most traders and investors, as long as their private keys and mnemonic phrases remain private and secure.

2. Hosted wallet
Escrow wallets involve a third party managing private keys on behalf of the user. The wallet you have in your Binance account is an example of a custodial wallet. While providing convenience, users must entrust their assets to a custodian, so it is important to choose an exchange that is reliable and trustworthy.

Types of Web3 wallets

There are many ways to classify Web3 and cryptocurrency wallets. In this section, we’ll explore some of the most common types: hardware, web, desktop, mobile, paper, and smart contract wallets. But keep in mind that there is overlap between the different categories.

For example, some Web3 wallets like MetaMask can serve as web and mobile wallets, and provide support for hardware wallets such as Trezor and Ledger.

Hardware wallet
Hardware wallets are physical devices that can store cryptocurrency keys offline (cold storage), providing additional security. Although they are more secure from online threats, they can be a bit difficult to use and access compared to other wallets.

But if you plan to hold cryptocurrencies for a long time or have a large amount of cryptocurrencies, a hardware wallet may be a good choice.​

You can set a PIN for extra protection, and most PINs allow you to create a backup recovery phrase in case you lose your wallet. Trezor and Ledger are popular examples of hardware cryptocurrency wallets.

web wallet

Web wallets typically operate through a browser interface and allow users to access and withdraw their cryptocurrency holdings online. Most online wallets today are also available as mobile wallets. Although convenient, users must be careful when connecting their wallets to DeFi platforms and DApps. Interacting with malicious websites or smart contracts may put your assets at risk.

mobile wallet

Mobile wallets work similarly to web wallets, but are made specifically for smartphones. They allow users to conveniently send and receive cryptocurrencies using mobile barcodes, and also enable easy mobile access to DeFi and DApps.

But just like computers, mobile devices are susceptible to malicious apps and malware. If your phone is lost or malfunctions, it is recommended to use password encryption and back up your mnemonic phrase (or private key) to protect your mobile wallet.

MetaMask, Binance Web3 Wallet, and Trust Wallet are well-known examples of mobile cryptocurrency wallets.We will go into details one by one in the next section.

Smart contract wallet

Smart contract wallets are managed by smart contracts on the blockchain. These wallets introduce programmable self-custody accounts and enable advanced features. Unlike traditional wallets, smart contract wallets allow users to define the rules and conditions of transactions, automate financial activities, and enhance security through programmable logic.​

Smart contract wallets often leverage blockchain technology to provide users with decentralized control over their funds and facilitate integration with DeFi applications. Security features such as multi-signature requirements, time locking, and upgradeability are common aspects of smart contract wallets, making them versatile tools for managing and interacting with cryptocurrencies.

desktop wallet

In the early years of Bitcoin and cryptocurrencies, desktop wallets were more common. They are software applications installed on your computer that provide complete control over your cryptocurrency keys. Security depends on the completeness of the user's computer security, and regular backup of wallet data is crucial to prevent loss.

paper wallet
Paper wallets are often considered by many to be a non-recommended and outdated method. They involve physically printing or writing cryptocurrency addresses and private keys on paper. They provide offline storage to protect against online hackers, but require careful handling and secure storage to prevent physical damage or loss.

WhaleVest｜WhaleVest 100 Compass｜Comprehensive introduction to NFT concepts

What is "non-homogeneity"?

The term "non-fungible" refers to the irreplaceability of items. Irreplaceable items cannot be directly exchanged for other items of the same value because the properties of the two items are different. This means that non-fungible items cannot be traded on a standardized scale because their value stems from their uniqueness and the subjective value buyers place on them.

Homogenous assets, such as currencies, are easily exchanged because they are consistent. Conversely, non-fungible assets are unique and irreplaceable, which can appeal to collectors who want to acquire truly unique items.

What are non-fungible tokens (NFTs)?

NFTs are cryptographic tokens hosted on the blockchain that can be used to represent digital assets. Non-fungible NFTs define digital assets that represent ownership of unique items, such as artwork, video game items, trading cards, virtual real estate, and other digital goods.

In recent years, NFTs have become widely popular, allowing creators to earn compensation for their digital creations and allowing collectors to own unique digital assets.

How do NFTs work?

NFTs are based on blockchain technology, which provides a decentralized ledger that records transactions and ownership details. Its transparent and immutable nature allows the ownership history of an NFT to be clearly traced. When ownership is transferred, the authenticity and legality of the NFT can be verified.

Another underlying technology for NFTs are smart contracts, which are essentially self-executing programs. By automating and enforcing relevant conditions, smart contracts can create, manage, and transfer NFTs without intermediaries.

A key to NFTs is implementing token standards. NFTs ensure interoperability and consistency across different platforms through defined rules and functionality for creating, managing, and transferring NFTs. For example, the most widely adopted token standards for NFTs are ERC-721 on Ethereum and BEP-721 on the BNB chain.

The process of creating NFTs is often called minting. Minting uses smart contracts to convert digital files into digital assets on the blockchain. When you purchase an NFT, you essentially take ownership of a unique identification number (or token ID) associated with a specific digital asset.Therefore, the code owner has exclusive rights to use, display, and interact with the asset.

What are NFTs used for?

NFTs have redefined the concepts of ownership and value in the digital world, creating new opportunities for creators and consumers. Common NFT applications are listed below:

NFT art

NFT art provides artists with a new way to monetize their works. By tokenizing art, creators can sell unique digital copies, thereby preserving the originality and scarcity of each work. NFT art also allows collectors to display the work in a virtual gallery, trade it, or even loan it to others.

NFT game

NFT games can incorporate NFTs as digital collectibles (such as in-game items and characters). NFT can also be used as virtual real estate for players to trade, potentially creating a gaming ecosystem for players to earn rewards through game achievements and assets, thereby establishing a secondary market.

NFT pledge
NFT staking allows users to earn rewards by placing NFTs as collateral. Some decentralized finance (DeFi) platforms have enabled staking operations, allowing holders to earn interest while retaining ownership of NFTs.

NFT ticketing

NFTs can be used for ticket management. For example, event planners could issue NFTs as tickets, providing immutable proof of ownership and attendance. Additionally, NFT tickets can be transferred and resold without involving third parties.

Popular NFT Examples

CryptoPunks

CryptoPunks are one of the oldest NFTs on Ethereum. Launched in 2017, it consists of 10,000 8-bit pixel art characters generated by a unique algorithm. Each CryptoPunk character has different traits and attributes, making them particularly attractive to collectors.

You may even see celebrities using these characters as their social media avatars. The project was a huge success, laying the foundation for a new era of digital art and collectibles.

Boring Ape Yacht Club (BAYC)

Bored Ape Yacht Club (BAYC) is a character collection of 10,000 unique hand-drawn cartoon apes, each with different characteristics. These digital artworks are collectibles that provide the holder with access to exclusive events and virtual spaces. As a result, these NFTs blur the lines between digital artwork and experiential products.

Decentraland

Decentraland is a virtual reality (VR) platform built on the Ethereum blockchain. It features an NFT decentralized market that allows users to trade pieces of virtual land and various in-game items. The Decentraland platform can be said to be at the forefront of virtual real estate and the metaverse.

NFTs are the same as cryptocurrencies

While NFTs and cryptocurrencies are both digital assets that use blockchain technology, they have different uses and characteristics. Cryptocurrencies are generally designed to facilitate transactions. They are also homogeneous, meaning each unit is convertible into another unit of the same currency. For example, you can exchange one Bitcoin for another Bitcoin without any difference in value.

In contrast, NFTs are unique digital assets. NFT is non-fungible, which means that each NFT has unique characteristics and cannot be directly interchanged on a one-to-one basis. Simply put, NFTs determine value based on uniqueness and scarcity.

Summarize

NFTs are unique digital assets built on the blockchain that establish ownership and verify the authenticity of the item they represent. NFT has soared in popularity due to its diverse applications. It provides creators with new ways to monetize their works and allows collectors to take the opportunity to hold and display unique assets.

Register now for the world’s largest exchange to enjoy the epic bull market: https://www.binance.com/zh-TC/join?ref=19772816

WhaleVest｜WhaleVest 100 Compass｜Security Token Getting Started Guide

What are security tokens?

Security tokens are tokens issued on the blockchain that represent an interest in some external business or asset. These bonds can be issued by entities such as businesses or governments for the same purpose as existing counterparties (e.g. stocks, bonds, etc.).

Why use security tokens?

For example, let’s say a company wants to distribute shares to investors in the form of tokens. These tokens can be designed to have all the same benefits one would expect from a stake, especially voting rights and dividends.

The advantages of this approach are many. Like cryptocurrencies and other forms of tokens, security tokens benefit from the properties of the blockchain on which they are issued. These attributes include transparency, fast settlement, no downtime, and divisibility.

Transparency

On the public ledger, participants' identities are abstract, but everything else is auditable. Anyone can freely inspect the smart contracts that govern the tokens, or track issuance and holdings.

Quick settlement

Clearing and settlement have long been regarded as bottlenecks in asset transfers. While transactions can be completed almost instantly, reassigning ownership often takes a while. On the blockchain, the process happens automatically and can be completed in minutes.

uptime

The uptime of existing financial markets is somewhat limited. There are fixed opening hours each week and are closed on weekends. On the other hand, the digital asset market is active from morning to night.

Divisibility

Art, real estate, and other high-value assets, once tokenized, can become available to investors who would otherwise not be able to invest. For example, we could tokenize a painting worth $5 million into 5,000 pieces, so that each piece is worth $1,000. This greatly improves accessibility while bringing a higher level of investment granularity.

However, it is worth noting that certain security tokens may have restrictions on divisibility. In some cases, where voting rights or dividends are granted entirely in the form of equity shares, there may be restrictions on the divisibility of tokens for enforcement purposes.

Security Tokens vs. Utility Tokens – What’s the Difference?

Security tokens have many similarities with utility tokens. Technically speaking, the release content of both sets of products is the same. They are managed by smart contracts and can be sent to a blockchain address and traded on an exchange or via peer-to-peer transactions.

They differ primarily in their economics and the regulations that support them. They can be issued through an Initial Coin Offering (ICO) or an Initial Exchange Offering (IEO), which allows new startups or established projects to crowdfund funds to grow their ecosystem.

By donating funds, users receive these digital tokens, enabling them to join the project's network (immediately or in the future). They can grant holders stock rights, or serve as an agreed-upon currency to acquire products or services.

Utility tokens have no value in themselves. If a project develops successfully, investors cannot obtain part of the profits like traditional securities. We can compare the role of tokens to membership points. They can be used to buy goods (or sell them), but they provide no interest in the distribution business.

Therefore, their value is often driven by speculation. Many investors will buy tokens in the hope that their prices will increase as the ecosystem develops. If the project fails, there is almost no protection for the holder.

Security tokens are issued in a manner similar to utility tokens, although their distribution event is called a security token offering (STO). However, from an investment perspective, the two tokens represent very different instruments.

Even though they are issued on the blockchain, security tokens are still securities. Therefore, they are strictly regulated to protect investors and avoid incidents of fraud. In this regard, STO is more similar to IPO than ICO.

Typically, when investors purchase security tokens, they are purchasing stocks, bonds, or derivatives. Their tokens effectively function as investment contracts, guaranteeing ownership of off-chain assets.

What makes a token a security?

Currently, the blockchain industry still lacks much-needed legal clarity. Regulators around the world continue to catch up with new financial technologies.In some cases, issuers believed they were issuing utility tokens, but those tokens were later deemed securities by the U.S. Securities and Exchange Commission (SEC).

Perhaps the most famous indicator for trying to determine whether a transaction amounts to an "investment contract" is the Howey test.

Security tokens and programmable finance

Given the size of today’s market, tokenization has the potential to fundamentally change the traditional financial sector. Investors and institutions in this area will benefit greatly from fully digital financial instruments.

Over the years, the centralized database ecosystem has generated a lot of friction. Agencies need to dedicate resources to administrative processes to manage external data that is incompatible with their own systems. The lack of industry standards increases costs for businesses and severely delays settlement.

Blockchain is a shared database that any user or business can easily interact with. Functions previously handled by an organization's servers can now be outsourced to ledgers used by other parts of the industry. By tokenizing securities, we can plug them into interoperable networks, allowing for fast settlement and global compatibility.

From there, automation can take care of other time-consuming processes. For example, KYC/AML compliance, investments locked for a fixed time, and many other functions can be handled through code executed on the blockchain.

Summarize

Security tokens seem to be a logical development for the financial industry. However, there is still room for improvement on the regulatory front. Because these assets can be easily moved around the world, authorities must find ways to effectively regulate their issuance and movement.

Some speculate that this could also be automated by coding smart contracts with certain rules. Projects such as Ravencoin, Liquid and Polymath have facilitated the issuance of security tokens.

If the promise of security tokens comes to fruition, the operations of financial institutions could be significantly streamlined. Replacing traditional tools with blockchain-based tokens can effectively catalyze the merger of traditional currency and cryptocurrency markets.

WhaleVest｜WhaleVest 100 Compass｜Asset Allocation and Diversification Techniques

Preface

When money is involved, there is always risk. Loss is possible on any investment, and cash-only positions will slowly lose value due to inflation. While risk cannot be eliminated, adjustments can be made to fit an individual's specific investment goals.

Asset allocation and diversification are concepts that play a key role in determining these risk parameters. Even those new to investing are likely familiar with the principles behind it, as these concepts have been around for thousands of years.

This article will outline what these concepts are and how they relate to modern money management strategies.

If you would like to read more about similar topics, please see the description of financial risks.

What is asset allocation and diversification?

The terms asset allocation and diversification are often used interchangeably. However, they may be referring to slightly different aspects of risk management.

Asset allocation can be used to describe a money management strategy, outlining how capital should be allocated among different asset classes in a portfolio. Diversification, on the other hand, might describe the allocation of capital among these asset classes.

The main goal of these strategies is to maximize expected returns while minimizing potential risks. Typically, this involves determining an investor's investment time horizon, risk tolerance and sometimes wider economic conditions.

Simply put, the main idea behind asset allocation and diversification strategies boils down to not putting all your eggs in one basket. Combining uncorrelated asset classes and assets is the most effective way to build a balanced portfolio.

The power of these two strategies combined is that risk is not only distributed across different asset classes, but also within those asset classes.

Some financial experts even believe that the determination of asset allocation strategy may be more important than the choice of personal investment itself.

modern portfolio theory

Modern Portfolio Theory (MPT) is a framework that formalizes these principles through a mathematical model. It was proposed by Harry Markowitz in a 1952 paper for which he later won the Nobel Prize in Economics.

Major asset classes tend to move differently. Market conditions that make one asset class perform well may cause another asset class to perform poorly. The main assumption is that if one asset class performs poorly, losses can be balanced by another asset class that performs well.

MPT assumes that portfolio volatility can be reduced by combining assets from uncorrelated asset classes. This will also improve risk-adjusted performance, meaning a portfolio with equal risk will generate better returns. It also assumes that if two portfolios offer the same return, any rational investor would choose the less risky portfolio.

Simply put, MPT states that it is most efficient to combine uncorrelated assets in a portfolio.

Asset Classes and Types of Allocation Strategies

In a typical asset allocation framework, asset classes can be classified as follows:
Traditional assets – stocks, bonds and cash. Alternative assets — real estate, commodities, derivatives, insurance products, private equity and, of course, cryptoassets.

Generally speaking, there are two main types of asset allocation strategies that use the assumptions outlined in MPT: strategic asset allocation and tactical asset allocation.

Strategic asset allocation is considered a traditional approach and is more suitable for passive investing styles. Portfolios based on this strategy tend to rebalance required allocations only when an investor's time horizon or risk profile changes.

Tactical asset allocation is better suited for a more active investing style. It allows investors to focus their portfolios on assets that outperform the market. The assumption is that if an industry outperforms the market, it is likely to continue to outperform the market over an extended period of time.

A certain degree of pluralism is also allowed as it is also based on the principles outlined in MPT.
It is important to note that assets do not have to be completely uncorrelated or inversely correlated for diversification to have a beneficial effect. It only requires that the assets are not perfectly correlated.

Apply asset allocation and diversification to your portfolio

Let’s look at these principles through an example portfolio. An asset allocation strategy can determine how a portfolio should be divided among different asset classes:

40% invested in stocks 30% invested in bonds 20% invested in crypto assets 10% in cash
A diversification strategy might provide that of the 20% invested in crypto assets:

70% should be allocated to Bitcoin 15% to large caps 10% to mid caps 5% to small caps

Once allocations are determined, the performance of the portfolio can be monitored and reviewed regularly. If allocations change, it may be time to rebalance — buying and selling assets to adjust the portfolio to the ideal proportions. This typically involves selling stocks that are performing best and buying stocks that are underperforming.

Of course, asset selection depends entirely on strategy and personal investment goals.

Cryptoassets are one of the riskiest asset classes. This portfolio may be considered very risky as there is a significant portion allocated to crypto assets. More risk-averse investors may want to allocate more of their portfolio to, say, bonds, a much lower-risk asset class.

Register now for the world’s largest exchange to enjoy the epic bull market: https://www.binance.com/zh-TC/join?ref=19772816

WhaleVest | WhaleVest 100 Compass | What is the difference between APY vs APR?

APR vs. APY

Both APR and APY are quite important for personal financial purposes. Let's start with a simpler term, Annual Percentage Rate (APR). This is the interest rate that lenders earn on their funds over the course of a year—and the interest rate that borrowers pay for the use of that funds.

For example, if you deposit $10,000 into a bank savings account at 20% APR, you'll earn $2,000 in interest after one year. Your interest is calculated by multiplying the principal amount ($10,000) by the APR (20%). Therefore, the total amount you will have after one year is $12,000. After two years, your principal will be $14,000. After three years, you'll have $16,000, and so on.

Before we discuss annualized yield (APY), let’s understand what compound interest is. Simply put, it means earning interest on previous interest. In the example above, if the financial institution pays interest on your account each month, your balance will differ throughout the twelve months of the year.​

Instead of getting $12,000 at the end of month 12, you'll earn some interest each month. This interest is added to the principal of your deposit, and the total interest you earn increases over time. Each month, you'll have more money to earn interest on. This effect is called compound interest.​

Let's say you deposit $10,000 into a bank account at 20% APR, compounded monthly. Without complicated math involved, you'll end up with $12,429 at the end of the year. This equates to an additional $429 in interest earned just through the added effect of compounding. But how much interest can you earn on that 20% APR if you use daily compounding? Your total principal will be $12,452.​

The longer the time span, the greater the power of compound interest. After three years, you could end up with $19,309 compounded daily on the same 20% APR product. That's $3,309 more in interest than the same 20% APR product without compounding.​

By using compound interest, you will earn more money on your principal. Also note that interest will vary based on how often it compounds.When compound interest occurs more frequently, you earn more. The interest compounded daily will be higher than the interest you will earn compounded monthly.​

How do you calculate how much money you can make when a financial product offers compound interest? This is where annualized yield (APY) comes in handy. You can use a formula to convert APR to APY, depending on how often interest compounds. 20% APR compounded monthly equals 21.94% APY. If compounded daily, it would equal an APY of 22.13%. These APY numbers represent the annualized interest earnings you earn after factoring in compound interest.​

All in all, APR (annual percentage rate) is a simpler, more static metric: it's always a fixed annual rate. But APY (Annualized Percentage Yield) includes interest earned through interest or compound interest. It will vary based on the frequency of compounding. One way to remember this difference is to remember that "yield" has five letters (one more than "rate") and represents a more complex concept (and higher yield).

How do you compare different interest rates?​

From the example above, you can see that more interest can be earned when the interest is compounded. Different products may display their interest rates as APR or APY. Because of this difference, the same conditions must be used for comparison. Be careful when comparing products as your baseline for comparison may not be consistent.​

A product with a higher APY will not necessarily generate more interest than a product with a lower APR. If you know how often interest is compounded, you can easily convert APR and APY using online tools.​

The same is true for DeFi and other types of cryptocurrency products. When looking at products advertised in cryptocurrency APY and APR – such as cryptocurrency savings and staking – be sure to convert first so that the baseline for comparison is consistent.​

Additionally, when comparing two DeFi products, confirm that their compounding periods are the same. If they have the same APR, but one is compounded monthly and the other is compounded daily, the one with daily compounding can earn you more cryptocurrency interest.

Another important point to note is how APY relates to the specific cryptocurrency product you are reviewing. Some product collateral use the term "APY" to refer to the rewards that can be earned in cryptocurrency over the selected time frame, rather than any actual or predicted rewards/yields denominated in fiat currencies.

This is an important distinction because cryptocurrency asset prices can fluctuate, and the value of your investment (in fiat currency) can fall as well as rise. If the price of a cryptocurrency asset drops significantly, the value of your investment (in fiat currency) may still be less than the original fiat currency amount you invested, even if you continue to earn APY on your cryptocurrency assets.

Therefore, it is important that you read the relevant product terms carefully and do your own research to fully understand the investment risks involved and what the APY means in particular circumstances.                               

Summarize

APR and APY may be confused at first, but it's easy to tell the difference as long as you remember that annualized yield (APY) is a complex metric that includes compound interest. Due to the effect of earning interest through interest, APY will be higher when compounding occurs more frequently than once a year. The principle is to remember to check which interest rate you are using when calculating the interest you can earn.​​