When BTC tokens are held on centralized platforms, the owner cannot know for sure if they are getting real bitcoins or “paper bitcoins”.

As Bitcoin’s popularity continues to grow, more and more people are turning to centralized exchanges (or crypto exchanges) to purchase the digital currency. However, it is important to understand that when BTC tokens are held on centralized platforms, the owner cannot know for sure if they are getting real bitcoins or “paper bitcoins”.

Paper Bitcoin is a “Bitcoin of ₿” type, which means that the crypto exchange owes the user a certain amount of the digital currency in question.

To ensure that the BTC purchased is genuine, the investor must withdraw it to an independent crypto wallet, or sell it for another asset or commodity. This is because most cryptocurrency exchanges do not create a separate wallet for users in order to save on transaction fees. Instead, these companies display bitcoin balances as a number next to the username on a simple spreadsheet.

“Not Your Keys, Not Your Coins”

The famous phrase “not your keys, not your coins” is a popular saying in the crypto community, meant to emphasize the importance of owning the private keys to the cryptocurrencies one owns. This means that if an investor is not in control of the private keys associated with their crypto, they do not actually own the funds in question.

Conversely, if an investor is in control of their private keys, then they have full ownership and control of their cryptocurrency, and can transact it as they see fit.

Crypto exchanges tend to keep their BTC in wallets for which they hold the private keys and where they store them securely. This is because if they were to transfer small amounts of BTC to a user’s wallets every time merchants buy and sell within the crypto ecosystem, exchanges would incur significant transaction fees.

Exchanges that provide a market for buying, selling, and staking BTC can sell more bitcoins than they have. This means that if all the bitcoin owners who hold their BTC on these crypto platforms withdraw their funds at the same time, there may not be enough real coins to go around, as the exchanges could have produced a larger amount of paper bitcoins and sold them at trusting customers.

A Case of Embezzlement in a Cryptocurrency Exchange?

Crypto platforms often use their users’ bitcoins for remortgage purposes, using their deposits as collateral for a loan for their own benefit. Therefore, these companies can offer incentives to bitcoin holders to encourage them to keep their funds on the platform, allowing them to reduce transaction costs and withdrawal fees or increase staking rewards, among other things. While these benefits may sound very attractive, it is still safer to hold BTC in a separate wallet.

It is important to understand the intricacies surrounding BTC ownership on a centralized crypto exchange. However, by withdrawing your bitcoins to a separate wallet, you can ensure that you hold real bitcoins, and therefore, reduce your risk exposure.

By Audy Castaneda

NEAR was bullish, but a key technical indicator was showing an increasing divergence.

NEAR Protocol [NEAR] more than doubled in value after the January rally. It jumped from $1,247 to $2,721, but then fluctuated. The value of NEAR was at $2,501, but it was increasingly facing a probable correction, due to the divergence of a technical indicator.

It is worth remembering that one of the most common indicators when working on technical analysis is the RSI indicator. The RSI stands for Relative Strength Index.

The RSI, originally developed by J. Welles Wilder in 1978, is an oscillator-type indicator that reflects the relative strength of bullish movements, compared to bearish movements. It is used by traders to gauge the strength of a trend and identify trend-ending signals.

The RSI indicator provides valuable market information and trading signals. It measures the relationship between the up and down movements, and normalizes the calculation so that the index fluctuates in a range of 0 to 100.

The RSI Increasing Divergence from NEAR: Is a Correction Likely?

The daily chart showed that a bullish NEAR faced a successful rally in January, but faced price rejection at the overhead resistance level of $2,721. However, the upward price action was the opposite of its Relative Strength Index (RSI).

The RSI has been trending down since mid-January, a divergence with price action that could suggest a possible correction in the coming days.

Based on the height of the recent price consolidation range of $2,323 and $2,721, the correction could target support at the 50% Fibonacci level of $1,984.

However, the decline could also be sustained by the 100 day EMA, or the 61.8% Fibonacci level. These could act as short sell targets if the correction occurs.

Nevertheless, the bias above would be invalidated if the bulls break above the 100% Fibonacci level of $2,721. Such a rally will allow the bulls to retest the October support level of $2,771 or the November high of $3,342.

NEAR Saw Fluctuating OI and A Decline in Active Users

According to data from Coinglass, NEAR’s fluctuating open interest (OI) rates undermined a strong uptrend rally. At press time, NEAR’s OI had fallen sharply but leveled off, signaling a possible change in momentum that could support NEAR’s uptrend.

However, a prolonged drop in OI could undermine further uptrend as more money flows out of the NEAR futures market.

On the other hand, NEAR’s daily active users and trading volumes have fallen since mid-January. The trend shows that fewer accounts were trading close, which could undermine the buying pressure needed for strong uptrend momentum.

As a result, bears could be inclined to devalue NEAR and set it at a correction.

By Audy Castaneda

Play2Earn in games and dApps allows players to earn digital assets like tokens through gameplay and participation.

Play2Earn is a relatively new concept for the Blockchain and crypto community. As such, games based on this concept could be very profitable. Especially with a resurgence in the market, now seems like a good opportunity to earn money with these Play2Earn games.

Play2Earn in games and dApps allows players to earn digital assets like tokens through gameplay and participation. These assets are tradable and have real value, and the decentralized nature of the Blockchain provides security and ownership of earned assets through an immutable ledger. This model encourages player participation and creates a transparent and fair gaming experience.

In the context of Play2Earn in the gaming industry, many in-game assets are represented as NFTs, and they may need to be purchased with fiat money to start playing. However, P2E games tend to be easy to play, and they encourage player participation and connection with others.

There are also Metaverse platforms that use this model, allowing players to interact in a virtual world, play games, and sell digital assets. The use of Blockchain technology has made gambling a fun and lucrative endeavor by changing perspectives.

Below are four Play2Earn games, with which you can earn money in 2023.

Avegotchi

Aavegotchi is a Blockchain-based game that belongs to Play2Earn Games. It is a collecting game in which players can earn rewards by participating in battles, acquiring and training creepy creatures, called Aavegotchis, as well as by exploring the game world. Aavegotchis are represented as Non-Fungible Tokens (NFTs) and can be bought, sold, and traded with other players.

There are several ways to earn in-game currency (GHST) on Aavegotchi, such as: (a) playing the game; (b) trade in Aavegotchis; (c) participation in events; and (d) missions.

Upland

Upland is a Blockchain-based virtual world game that also works on the Play2Earn Games model.

Players can earn UPX in-game currency by buying, upgrading, and selling properties, as well as participating in events and challenges.

The aim of the game is to become a successful virtual real estate tycoon. You can buy, manage and sell real estate in the virtual world.

Sandbox

Sandbox is a Blockchain-based virtual world game, and can be counted among the Play2Earn games. In The Sandbox, players can create and build their own virtual worlds using voxel-based assets.

Players can earn SAND in-game currency by participating in the game, creating and sharing content, participating in events, and completing challenges.

Gods Unchained

Gods Unchained is a digital collectible card game (CCG) based on the Ethereum Blockchain. Players can purchase, collect, and trade unique cards represented as non-fungible tokens (NFTs).

Gods Unchained has a fantasy setting and players can build decks and engage in strategic battles with other players.

By Audy Castaneda