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With hierarchical channels, Lightning may overcome its scalability limitations by enabling quick and flexible off-chain resizing of channels.

Developers are exploring the use of hierarchical channels to help speed up and make the Lightning Network (LN) more scalable. Hierarchical channels allow for flexible off-chain resizing of channels, enabling quick and cheap resizing, without on-chain transactions which add delays and costs. In contrast, resizing channels on-chain can cause delays of several months and increases fees. The current proposals for resizing channels off-chain involve creating a channel factory or CoinPool and exchanging capacity between channels within the same factory or pool. Hierarchical channels allow for flexible off-chain resizing of channels without requiring an exchange of capacity within a limited pool of users. The hierarchical channels enable the creation of a two-party channel with two main outputs, one per party, plus zero or more Hashed Time-Locked Contract (HTLC) outputs. 

Each output from a hierarchical channel funds another channel that can be viewed as the root of an off-chain tree of outputs where the leaves are owned by single users. The parties can use a hashed timelock contract (HTLC) to exchange bitcoin, linking their HTLC to HTLCs in other (potentially hierarchical) channels, thus making payments over the LN.

With hierarchical channels, developers are proposing to solve two problems. Firstly, it allows for flexible resizing, near-instantly and off-chain, which is similar to the Lightning Network’s aim of allowing for near-instant off-chain payments. Secondly, hierarchical channels could be used by casual users who can send and receive bitcoin in a watchtower-free manner while the dedicated users can use all of their channel capacity to route payments, even while the casual user is inactive. Hierarchical channels would enable casual users to operate in a watchtower-free manner without stranding any capital.

The implementation of hierarchical channels could help overcome one of the biggest limitations of the Lightning Network, which is its scalability. It is expected that hierarchical channels would provide the necessary support for efficient Lightning Network payments without introducing additional delays, adding costs, and limiting scalability. The development of hierarchical channels does not require any changes to the underlying Bitcoin protocol.

Developers are proposing that hierarchical channels are an effective way of enabling flexible and off-chain resizing of channels within the Lightning Network. The ability to resize channels quickly and efficiently will enable the Lightning Network to continue to scale and meet the increasing demand for more efficient payment channels.

BITCOIN DEVELOPERS PROPOSE CHANNELS TO BOOST LIGHTNING NETWORK SCALABILITY


The update illustrates that the Bitcoin builder community surrounding Spiral is hard at work.Spiral, the Bitcoin-focused subsidiary of Block, has released its quarterly update. 

The projects Spiral has launched have released new updates and features for various products, including Lightning Development Kit (LDK), Bitcoin Development Kit (BDK), Bitcoin Design Community and Bitcoin Product Community.

The update described how the Lightning Development Kit's LDK Node implementation aims to simplify the full suite of LDK APIs, allowing for an easier payment experience for users. Conor Okus, one of LDK Node's creators, shared a sneak peek of the technology during the Advancing Bitcoin 2023 conference in London. At the end of the workshop, all 30 attendees built a Lightning Wallet from scratch and made a successful payment.

On the other hand, the Bitcoin Development Kit saw a big milestone with the tagging of its 1.0 alpha release. This release included the new 1.0 framework and integration testing while APIs and internals are still under active development. This quarter, Kotlin, Swift, and Python language bindings can now broadcast raw transactions, create descriptors for BIP44/49/84 templates, access blockchain fee estimation and see more transaction and address info.

The Bitcoin Design Community has adopted Nostr Nets for community calls, and they also recently switched from Slack to Discord, though their Slack is still active. The community has also started a new series called Merchant Product Review, which analyzes bitcoin products and tools for merchants. They went deep on Tiankii, a merchant platform for El Salvadorians, along with the POS terminal functional on Breez.

Lastly, the Bitcoin Product Community was launched this quarter to encourage product managers to shepherd bitcoin projects from inception to completion. They held a Twitter Space to announce the community's formation and what to expect from it.

Developers Alekos Filini and Daniela Brozzoni announced their new hack.bs hacker space in Brescia, Italy. They teamed up with BitGeneration to bring bitcoin education to Italian high school students via talks and the BDK-based training wallet Padawan. Speaking of, this quarter, Thunderbiscuit listed Padawan on the Google Play store. Rajarshi Maitra hosted a "Mastering Bitcoin" cohort through his Bitshala initiative, and Vlad Kwasi published an article in Forbes about using bitcoin in Africa without Internet access.

SPIRAL RELEASES Q2 UPDATE DETAILING BITCOIN DEVELOPMENT KIT MILESTONE.

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Is cryptocurrency safe?

Multiple factors show that cryptocurrency is not always a safe investment. All the while, other signs are emerging that cryptocurrency is here to stay.

Is crypto a good long-term investment?

Many cryptocurrencies such as Bitcoin and Ethereum are launched with lofty objectives, which may be achieved over long time horizons. While the success of any cryptocurrency project is not assured, early investors in a crypto project that reaches its goals can be richly rewarded over the long term.

For any cryptocurrency project, however, achieving widespread adoption is necessary to be considered a long-term success.

Investing > Stock Market > Market Sectors > Financials > Cryptocurrency Stocks > Is Cryptocurrency Good Investment

Is Cryptocurrency a Good Investment?Investing in virtual currency has produced jaw-dropping returns for some, but the field still presents risks.

By Anders Bylund – Updated Mar 2, 2023 at 4:17PM

It is possible to get filthy rich by investing in cryptocurrency -- but it is also very possible that you lose all of your money. Investing in crypto assets is risky, but can be a good investment if you do it properly and as part of a diversified portfolio.

Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency. A safer but potentially less lucrative alternative is buying the stocks of companies with exposure to cryptocurrency.

Image source: The Motley Fool

Let's examine the pros and cons of investing in cryptocurrency.

Is cryptocurrency safe?

Multiple factors show that cryptocurrency is not always a safe investment. All the while, other signs are emerging that cryptocurrency is here to stay.

Cryptocurrency risks

Cryptocurrency exchanges, more so than stock exchanges, are vulnerable to being hacked and becoming targets of other criminal activity. Security breaches have led to sizable losses for investors who have had their digital currencies stolen, spurring many exchanges and third-party insurers to begin offering protection against hacks. 

Safely storing cryptocurrencies is also more difficult than owning stocks or bonds. Cryptocurrency exchanges such as Coinbase (COIN -8.16%) make it fairly easy to buy and sell crypto assets such as Bitcoin (BTC -1.72%) and Ethereum (ETH -2.78%), but many people don't like to keep their digital assets on exchanges due to the risks of allowing any company to control access to their assets.

Storing cryptocurrency on a centralized exchange means you don't have full control over your assets. An exchange could freeze your assets based on a government request, or the exchange could go bankrupt and you'd have no recourse to recover your money.

Some cryptocurrency owners prefer offline "cold storage" options such as hardware wallets, but cold storage comes with its own set of challenges. The biggest is the risk of losing your private key; without a key, it's impossible to access your cryptocurrency.

There's also no guarantee that a crypto project you invest in will succeed. Competition is fierce among thousands of blockchain projects, and many projects are no more than scams. Only a small percentage of cryptocurrency projects will ultimately flourish.

Regulators may also crack down on the entire crypto industry, especially if governments view cryptocurrencies as a threat rather than an innovative technology.

The cutting-edge technology elements of cryptocurrency also increase the risks for investors. Much of the tech is still being developed and is not yet extensively proven in real-world scenarios.

Cryptocurrency adoption

Despite the risks, cryptocurrencies and the blockchain industry are growing stronger. Much-needed financial infrastructure is being built, and investors are increasingly able to access institutional-grade custody services. Professional and individual investors are gradually receiving the tools they need to manage and safeguard their crypto assets.

Crypto futures markets are being established, and many companies are gaining direct exposure to the cryptocurrency sector. Financial giants such as Block (SQ -6.21%) and PayPal (PYPL -3.1%) are making it easier to buy and sell cryptocurrency on their popular platforms. Other companies, including Block, have poured hundreds of millions of dollars into Bitcoin and other digital assets. Tesla (TSLA -3.25%) purchased $1.5 billion worth of Bitcoin in early 2021. By February 2022, the electric vehicle maker reported that it held almost $2 billion of the cryptocurrency. MicroStrategy (MSTR -9.7%) -- a business intelligence software company -- has been accumulating Bitcoin since 2020. It held $5.7 billion in the cryptocurrency by the end of 2021 and said it plans to buy more with excess cash generated from operations.

Although other factors still affect the riskiness of cryptocurrency, the increasing pace of adoption is a sign of a maturing industry. Individual investors and companies are seeking to gain direct exposure to cryptocurrency, considering it safe enough for investing large sums of money.

Bitcoin, as the most widely known cryptocurrency, benefits from the network effect -- more people want to own Bitcoin because Bitcoin is owned by the most people. Bitcoin is currently viewed by many investors as "digital gold," but it could also be used as a digital form of cash.

Bitcoin investors believe the cryptocurrency will gain value over the long term because the supply is fixed, unlike the supplies of fiat currencies such as the U.S. dollar or the Japanese yen. The supply of Bitcoin is capped at fewer than 21 million coins, while most currencies can be printed at the will of central bankers. Many investors expect Bitcoin to gain value as fiat currencies depreciate.

Those who are bullish about Bitcoin being extensively used as digital cash believe it has the potential to become the first truly global currency. 

Bitcoin as a long-term investmentEther is the native coin of the Ethereum platform and can be purchased by investors wishing to gain portfolio exposure to Ethereum. While Bitcoin can be viewed as digital gold, Ethereum is building a global computing platform that supports many other cryptocurrencies and a massive ecosystem of decentralized applications ("dApps").

The large number of cryptocurrencies built on the Ethereum platform, plus the open-source nature of dApps, creates opportunities for Ethereum to also benefit from the network effect and to create sustainable, long-term value. The Ethereum platform enables the use of "smart contracts," which execute automatically based on terms written directly into the contract code.

Ethereum as a long-term investmentEther is the native coin of the Ethereum platform and can be purchased by investors wishing to gain portfolio exposure to Ethereum. While Bitcoin can be viewed as digital gold, Ethereum is building a global computing platform that supports many other cryptocurrencies and a massive ecosystem of decentralized applications ("dApps").

The large number of cryptocurrencies built on the Ethereum platform, plus the open-source nature of dApps, creates opportunities for Ethereum to also benefit from the network effect and to create sustainable, long-term value. The Ethereum platform enables the use of "smart contracts," which execute automatically based on terms written directly into the contract code.

The Ethereum network collects Ether from users in exchange for executing smart contracts. Smart contract technology has significant potential to disrupt massive industries such as real estate and banking and also to create entirely new markets.

As the Ethereum platform becomes increasingly used worldwide, the Ether token increases in utility and value. Investors bullish on the long-term potential of the Ethereum platform can profit directly by owning Ether.  

That's not to say Ethereum doesn't have competition. A number of "Ethereum Killers," including Solana (SOL -4.12%), Polygon (MATIC -2.75%), and Avalanche (AVAX -2.46%), are all built to handle smart contracts and use a blockchain system capable of processing more transactions per second. The speed has the added advantage of being less expensive for users as well. But Ethereum is the most broadly adopted platform for using smart contracts.



Is Cryptocurrency a Good Investment?

What is crypto trading?

The act of speculating on cryptocurrency price movements via a contract for difference (CFD) trading account, or buying and selling the underlying coins via an exchange is known as cryptocurrency or crypto trading. CFD trading is a type of derivative that allows you to bet on Bitcoin (BTC) price changes without possessing the underlying currencies. 

For example, you can go long (buy) if you believe the value of a cryptocurrency will rise, or short (sell) if you believe the value will fall. Both are leveraged instruments, which means that you only need a little deposit, known as margin trading crypto, to have total exposure to the underlying market. However, because your profit or loss is still determined based on the total size of your investment, leveraging trading crypto magnifies both earnings and losses. 

Furthermore, cryptocurrency options are used by investors to reduce risk or increase market exposure. Crypto options trading refers to the “derivative” financial instrument that derives its value from the price of another asset — in this case, the underlying cryptocurrency.

Before even thinking about venturing into crypto trading, it is important that one has a comprehensive understanding of the assets and technologies involved. Bitcoin is the soil from which thousands of other cryptocurrencies have grown. 

As with stocks and other financial markets, trading cryptocurrency can be complex, involving a variety of components and requiring knowledge. Bitcoin launched in 2009 as the first crypto asset and remains the largest cryptocurrency in terms of market capitalization and prevalence. 

Over the years, however, an entire industry of other digital assets has come into existence with the assets being tradable for profit. All other cryptocurrencies that are not BTC are known as altcoins, the largest of which is Ether (ETH).

This guide will explain crypto trading strategies and familiarize you with crypto trading platforms and applications, the components of a trade, the styles of trading and the role of technical and fundamental analysis in creating a comprehensive trading strategy.

How to trade cryptocurrency for beginners

Many different approaches exist in terms of how to trade cryptocurrencies. In order to start trading cryptocurrencies, one first needs adequate knowledge of the subject. It is also critical to know the associated risks and the laws that may apply based on one’s jurisdiction and decisions should be made accordingly.

trade increases in size and complexity, so does a trader’s risk exposure.

First, let’s go over some basic concepts.

Structure of a crypto trade

A cryptocurrency trade consists of a buyer and a seller. Since there are two opposing sides to a trade — a purchase and a sale — someone is bound to gain more than the other. Hence, trading is inherently a zero-sum game: There is a winner and there is a loser. Having a basic understanding of how the cryptocurrency markets operate can help minimize potential loss and optimize for potential gain.

When a price is agreed upon between a buyer and seller, the trade is executed (via an exchange) and the market valuation for the asset is set. For the most part, buyers tend to set orders at a lower price than sellers. This creates the two sides of an order book.

When there are more buy orders for crypto than sell orders, the price usually goes up, as there’s more demand for the asset. Conversely, when more people are selling than buying, the price goes down. In many exchange interfaces, buys and sales are represented in different colors. This is to give the trader a quick indication of the state of the market at a given moment.

You may have heard the common adage in trading: “Buy low, sell high.” This saying can be difficult to navigate in that high and low prices can be relative, although the adage does give a basic representation of the incentives of buyers and sellers in a marketplace.

Simply put, if you want to purchase something, you want to spend the least amount possible. If you want to sell something, you want to make as much out of the deal as possible. While this is generally good wisdom to follow, there is also the added dimension of longing an asset vs. shorting an asset. 

To go long on an asset (longing) means buying an asset and earning profit based on its upward price movement. In contrast, going short on an asset (shorting) essentially means selling an asset with the intention of buying it back when its price falls below the point at which you sold it, profiting from a price drop. Shorting, however, is slightly more complicated than this brief description and involves selling borrowed assets that are paid back later.

Reading the markets

To the layperson, “the market” may seem like some complex system that only a specialist could ever hope to understand, but the truth is, it all comes down to people buying and selling. How to trade crypto might seem like an esoteric concept at first. Once you begin to understand it, however, the idea becomes a lot simpler.

The totality of active buy and sell orders is a snapshot of a market at any given moment. Reading the market is the ongoing process of spotting patterns, or trends, over time, which the trader can choose to act upon. Overall, there are two market trends: bullish and bearish.

A “bullish” market, or bull market, occurs when the price action appears to steadily increase. These upward price movements are also known as “pumps,” as the influx of buyers increases the prices. A “bearish” market, or bear market, occurs when the price action appears to steadily decrease. These downward price movements are also known as “dumps,” as the mass sell-offs result in the price going lower.

Bullish and bearish trends can also exist within other larger opposing trends, depending on the time horizon at which you look. For example, a small bearish trend may occur within a broader long-term bullish trend. In general, an uptrend results in price action making higher highs and higher lows. A downtrend makes lower highs and lower lows.

Another market state called “consolidation” occurs when the price trades sideways or within a range. Typically, consolidation phases are easier to spot on higher time frames (daily charts or weekly charts) and they occur when an asset is cooling off after a sharp upward or downward trend. Consolidation also takes place ahead of trend reversals, or in times when demand is muted and trading volumes are low. Prices essentially trade within a range during this market state.

Technical analysis

Technical analysis (TA) is a method of analyzing past market data, primarily price and volume in order to forecast price action. While there are a wide variety of TA indicators, ranging in complexity, that a trader could use to analyze the market, here are some basic macro- and micro-level tools.

Market structure and cycles

Just as traders can spot patterns within hours, days and months, they can also find patterns over years of fluctuating price action. There is a fundamental structure to the market that makes it susceptible to certain behaviors.

The cycle can be partitioned into four main parts: accumulation, markup, distribution and decline. As the market moves between these phases, traders will continuously adapt their positions by consolidating, retracing, or correcting as they deem necessary.

The bull and the bear are very different creatures and behave in opposition to one another within shared environmental conditions. It is critical that a trader knows not only under which role they fall but also which one is currently dominating the market.

Technical analysis is necessary not only to position oneself within this ever-changing market but also to actively navigate the ebbs and flows as they occur.

Chasing the whale 

Price movements are largely driven by “whales” — individuals or groups who have large funds with which to trade. Some whales operate as “market makers,” setting bids and asking on both sides of the market in order to create liquidity for an asset while turning a profit in the process. Whales are present in virtually any market from stocks and commodities to cryptocurrencies. 

A cryptocurrency trading strategy must be aware of the tools of the trade favored by whales such as their preferred TA indicators. Simply put, whales tend to know what they’re doing. By anticipating the intentions of whales, a trader can work in concert with these expert movers to turn a profit with their own strategy.

Psychological cycles

With a zoo full of metaphors, it can be easy to forget that real people — for the most part — are behind these trades and, as such, are subject to emotional behaviors that can significantly affect the market.

This aspect of the market is represented in the classic chart “Psychology of a Market Cycle:”

While the bull/bear framework is useful, the psychological cycle depicted above provides a more detailed spectrum of market sentiment. While one of the first rules of trading is to leave emotion at the door, the power of group mentality tends to take hold. The rally from hope to euphoria is driven by FOMO — the fear of missing out — from those who have yet positioned themselves in the market.

Navigating the valley between euphoria and complacency is crucial to timing an exit before the bears take hold and people panic sell. Here, it is important to factor in high-volume price action, which can indicate the general momentum of the market. The “buy low” philosophy is quite apparent, given that the best time to accumulate within the market cycle is during the depression following a drastic drop-off in price. The greater the risk, the greater the reward. 

The challenge faced by the serious trader is to not let emotion dictate their trading strategy amid the deluge of hot takes and analysis by the media, chat rooms, or so-called thought leaders. These markets are highly subject to manipulation by whales and those that can affect the pulse of the market. Do your homework, and be decisive in your cryptocurrency trading actions. 

Basic tools 

Being able to detect patterns and cycles in the market is crucial for having clarity from the macro perspective. Knowing where you are positioned in relation to the whole is paramount. You want to be the experienced surfer who knows when the perfect wave is about to arrive instead of paddling listlessly in the waters hoping for something great to happen.

But, the micro perspective is also crucial in determining your actual strategy. While there are a vast number of TA indicators, we will only go over the most basic.

Support and resistance

Perhaps two of the most widely used TA indicators under the terms “support” and “resistance” relate to price barriers that tend to form in the market, preventing the price action from going too far in a certain direction.

The support is the price level where the downward trend tends to pause due to an influx of demand. When prices decrease, traders tend to buy low, creating a support line. Conversely, the resistance is the price level where the upward trend tends to pause due to a sell-off.



How to trade cryptocurrencies: A beginner's guide


Gaming fintech Zebedee and mobile gaming studio Fumb Games said Bitcoin Miner, a simple idle mobile game that simulates running a crypto mining business, has been played by over one million players.

The companies said that this proves that sustainable play-and-earn mobile gaming works, is easy for anyone to get into and is here to stay. Unlike any Web3 titles, the game is completely free to play and rewards users in real Bitcoin just for playing. Playstudios uses a similar rewards model for its games.

Bitcoin Miner is not a new game. In fact, it was released almost five years ago but never gained traction with users. It was essentially a dead game until its creator, Fumb Games, partnered with Zebedee to add real Bitcoin rewards.

This transformed the game overnight, turning it from a failed project into the mobile gaming studio’s most profitable and biggest game. Now, almost a year after the game’s re-release with Bitcoin rewards, it has become arguably the most popular play-and-earn game in the world by user count, the companies said.

While it’s still early, successful projects like Bitcoin Miner are proving that this concept does resonate with users and that the games can scale sustainably.”

Bitcoin rewards in Bitcoin Miner are powered by Zebedee’s payments platform, tailored to the specific needs of game developers. It is a powerful tool that lets any gaming studio easily implement programmable Bitcoin payments using simple APIs. It is a fully managed solution that removes the need for game makers to worry about any technical Bitcoin or blockchain-related issues. They just make sure their game wallets are funded and watch the payments fly instantly into their users’ wallets, the companies said.

For users, it’s even simpler. They just get the Zebedee app, easily withdraw rewards from the game and can then instantly use their Bitcoin to shop for more than 5,000 gift cards or move it to a wallet, exchange or service of their choice.



Fumb Games crosses a million players for Bitcoin Miner simulation game

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