May 19th 2022| Mike Humphrey

What is Avalanche (AVAX)

Avalanche is a layer 0 blockchain with an open, programmable smart contracts platform for decentralized applications. Launched in September of 2020 by  New York based  AVA labs, it is currently the third largest blockchain by TVL with over 200+ DApps.  The flourishing community includes platforms like Curve, Trader Joe, Pangolin, Aave and even Defi Kingdom’s Crystalvale. Avalanche has been built a little differently than many of the other Ethereum alternative block chains.  It runs on the Ethereum Virtual Machine, but consists of the 3 chains that each perform different functions.  They are X-Chain, P-Chain and C-Chain.  X-Chain is used to exclusively create and exchange tokens. P-Chain coordinates Avalanche validators and creates subnets (where developers can create their own proprietary blockchains secured by the Avalanche network). C-Chain executes and allows interaction with smart contracts and Defi protocols.

AVAX is the gas token for the Avalanche chain.  With it you can pay for transactions on the network. Below we will guide you on how to Buy AVAX and transfer it to a web wallet that will allow you to interact with the DeFi protocols on the Avalanche network.

Avalanche Wallets

Because Avalanche works on EVM, any Ethereum compatible wallet will work with Avalanche. Metamask due to its popularity and ease of use is a good choice (How to Add Avalanche to Metamask).  Below is a list of some of the wallets that will work on Avalanche.  For more information read our article about cryptocurrency wallets.  We also recommend purchasing a hardware wallet to secure your funds. Ledger and Trezor both offer Metamask compatible hardware wallets. Read our article about how to keep your crypto safe to find out what you can do to prevent your crypto from being stolen.

• Metamask
• Trust Wallet

Where to Buy AVAX Crypto

1. Buy AVAX Token on an Exchange

   In order to buy AVAX with FIAT you will need to purchase the token from an exchange. Once bought, you can then transfer the token from your exchange wallet to your personal wallet. There are many exchange options available including Coinbase, Kucoin, Kraken, Bitfinex and more. If you have a Crypto.com account, you can purchase AVAX directly with a credit card, bank transfer or crypto and send it to your web wallet with zero transaction cost. Below is a step by step  guide on how to purchase and transfer AVAX using the crypto.com app.  If you sign up with our link you will receive a 25USD$ credit in your account as do we.  You can read our article about how to buy crypto currency if you want to know more about the other options available. 
   **NOTE:You must set up your crypto wallet on Avalanche C-Chain before you can receive your tokens in your wallet.**

   Crypto.com How To

   1. Buy AVAX

      To purchase AVAX sign into the Crypto.com app, choose Accounts from the bottom bar and select buy. On the next screen search for and select AVAX.  Once selected you can then choose your payment method and the amount you want to purchase. Click purchase.
      

   2. Transfer AVAX to Web Wallet

      Once the transaction is complete, you will have AVAX in your crypto.com wallet. In order to use the AVAX with DeFi protocols, you will need to move the AVAX to your personal wallet. To do this again selects Accounts at the bottom of the screen and then select Transfer.  Choose to Withdraw and then select External Wallet.
      

      Click the + icon in the top right to add your web wallet to the Whitelist and then choose Wallet Address.  You will be asked to choose which cryptocurrency you want to withdraw, select AVAX.

      
      In the new pop-up window, choose AVAXC as the network (this will transfer your assets to C-Chain), and enter your wallet address.

      **Note: if you do not choose AVAXC your tokens will be transferrred to the wrong chain!**

      We recommend adding your wallet using the QR code scanner to prevent errors.  You can also add a wallet name so you can distinguish the wallet later on.  Click continue and follow the required steps.  If you have 2FA activated, you will need to enter your security code to complete the transfer.
      Crypto.com will confirm the transfer and your funds will appear in your wallet (this may take some time). You may need to add the AVAX token address to your wallet before your balance is visible in your wallet.  Follow the add token section in our Add Avalanche to Metamask article

2. Avalanche Bridge – Transfer to Avalanche

   If you already own crypto and want to transfer it to Avalanche you can bridge the assets over.  Your tokens will be wrapped into the Avalanche chain equivalent at the same value.  There are several options available to move your funds from one chain to another. You will require AVAX in your wallet before you can perform transactions on Avalanche. You can either purchase it from an exchange, or swap your tokens on another chain for wrapped AVAX and bridge the wrapped AVAX to Avalanche.  The AVAX will be unwrapped once the transfer is complete and can then be used for gas fees.

   • • Avalanche Bridge (From EthereumMainnet)

       The Avalanche Bridge can transfer ERC20 tokens from Etherum Mainnet.  The other benefit of using the bridge is that if you move 75USD or more to Avalanche you will receive an AVAX airdrop that will cover the cost of your first couple of transactions.  This means you can transfer any asset and then swap it for enough AVAX once you are on C-Chain. If you are transferring from a chain other than mainnet (Polygon, Fantom, Arbitrum, Harmony etc) use one of the other options below to avoid the high cost fees on Ethereum.

     • Synapse (Multi-Chain)

       Synapse is a cross chain swap protocol that allows you to transfer directly from one chain to another. Synapse also has cross chain pools as well as their own nUSD & nEth wrapped tokens.  Use synapse if you have cryptocurrency sitting on another chain and you want to transfer it directly to Avalanche.

     • Anyswap (Multi-Chain)

       Like synapse, Anyswap is a cross chain bridge that allows you to swap directly from one chain to another.

Avalanche DEX’s  – Swap for AVAX Tokens

Once you have funds on Avalanche C-Chain, you will need AVAX tokens in your wallet in order to pay gas fees.  You will need to use a swap protocol to trade your bridged tokens for AVAX.  The following are some major swap protocols on Avalanche.  All three platforms offer liquidity pools, farming and staking opportunities as well.  Be sure to check out some of the great yield farming opportunities.

• • Pangolin
    
  • TraderJoe
    
  • Curve Finance

Welcome to Avalance

What do you think of Avalanche? Whats your favorite protocol? Let us know in the comments below!

Mike Humphrey

Hi I’m Mike, an active crypto investor DeFi enthusiast and crypto miner. I have been involved in crypto since March of 2021 and in DeFi since May 2021.

I’m also an avid outdoor adventurer!

MykHumphrey.com

mykhumphrey.com

December 27th 2021| Mike Humphrey

Mining Profits

No matter the size of your mining farm, you should be thinking of it as a business.  Whether you are running a single GPU, or 1,000 ASICs, you need to track your profit.  Thinking about your revenue and expenses will help you to maximize your returns.  Businesses also have the added benefit of writing off some of their expenses come tax season (this means subtracting expenses from your income before the tax man takes a percentage).  Think like a business, pay taxes on profits not revenue.  Employees pay taxes and then cover expenses, businesses do the opposite.

Profit = Revenue – Expenses

Mining Revenue

Revenue is the cryptocurrency deposited in your wallet from mining.  This is relatively straightforward, and can often be tracked manually, or exported directly from the mining pool(s) you have used.  If however, you switch pools or coins often, this can become much more complex.

Mine Pool Deposits

For tax purposes, cryptocurrency is considered and asset and a taxable transaction occurs any time an asset is bought or sold.  This includes when a deposit is made to your wallet.  This means for you must record the value of the asset at the time of the transaction (you will need to use the coin price at the time of the deposit).  Even for small scale crypto miners this can become a challenge to track.

Trades and Withdrawals

Any time you sell or trade your cryptocurrency, you are selling an asset.  This is a capital gain or a capital loss that must be recorded.  The price difference between when you mined the cryptocurrency, and when it was sold is considered revenue.  You must keep a record of all transaction, and the gains or losses that resulted.

Mining Expenses

For a business, an expense is any cost that was required to run the business.  This means any cost paid to run your farm could be an expense, and could be subtracted from your revenue prior to paying taxes.  This is the beauty of thinking of your farm as a business.  Expenses can be split into 2 general categories operating expenses, and capital expenses. Operating expenses are ongoing costs required to run your farm, for example electricity.  Capital expenses on the other hand are expenses that are paid upfront, but will generate revenue in the future.  An example of this is a video card that has a large upfront cost, but will make you money for several years.  The goal with accounting and taxes is to match the time of your expenses with the time it made you money.  Capital expenses allow you to store costs for future write-offs.

Operating Expenses

For a mine your primary operating expense is electricity.  You may also be able to claim smaller purchases as expenses as well.  This depends on the tax laws in your jurisdiction.  Be sure to speak with an account about what expenses can be claimed as capital vs. operating.

Example Operating Expenses

• Electricity
• Rent/Mortgage – If you rent space for your farm this may be considered an operating expense.  You may also be able to write off a portion of your mortgage payment, based on the space that your farm takes up in your home.
• Miscellaneous one-off expenses

How to Track Your Electricity

1. Measure at the wall – Use a smart plug or meter to track and record your power usage
2. Estimate using whattomine and your power costs

Capital Expense

Capital expenses are usually larger expenses, that will generate revenue across multiple tax time windows.  Video cards are a good example, but check with your accountant.

Examples

• Video Cards
• Cases
• Fans
• Power Supplies

You may not be able to claim all of the above as capital expenses depending on the laws that regulate your jurisdiction.

How to Track You Mining Profits

1. Manually

   Manual tracking of your revenue and expenses is very possible.  Many small businesses use Excel or Google sheets to manage their books.  If you are manually tracking your profits, it is recommend that you update your mining revenue on a monthly basis.  Take one day a month to record (or download) all of your mining payouts.  Record them in an Excel sheet, with the daily price in your currency of the mining payout.  On a second sheet, record all of your expenses; the date the expense was incurred, what the expense was, the vendor it was purchased from and how the expense was paid (credit card, cash etc).  Make sure to keep your receipts as you may need them later for your accountant, or if you get audited.  If you take the time once a month to record your revenue and your expenses you can track how well your farm is performing.  When tax season arrives, you will have the whole year recorded and save yourself the headache.

   We have created a simple spreadsheet to help you track your income and expenses.  Your accountant may also have a better template that they prefer you use.  The key is to make sure you are recording as much information as possible.  It’s very easy to loose track of a receipt, or to forget why you made a purchase.  If you record everything as it happens, you have the option of removing something if it cannot be claimed, it is much harder to get something back if it hasn’t been recorded.

   Mining revenue and expense tracking sheet

2. Software

   One of the great things about the blockchain is the ability to track transactions.  Doing this manually is possible, but it requires you to use API’s to import information, and it can be quite daunting.  Luckily however, this is a recognized issues and several software solutions have been developed to make this easier.  Note, even when using software to track your revenue, it will not track your expenses.  Expense tracking will need to be done manually through Excel or through tracking software like Quickbooks. Set up a business account and business credit card, and you will be able to differentiate personal and business purchases.  You will still need to keep all of your receipts in order to justify the expenses in the case of an audit.  Below is a list of several online tools that can be used to both track your profits and taxable income from your mining operation.

   • • Cointracking.info

       CoinTracking.info is an online software tool that will analyze your portfolio, and generate real-time reports on profits, loss and total value.  It supports over 14,600 coins and has more than 12 years of historical data.

       Benefits

       • 25 customizable reports
       • Easily import from 110+ exchanges or directly from the blockchain
       • Export data to Excel
       • Tax reports & laws for 100+ countries
       • Track capital gains, income, mining returns and more

     • Koinly.io

       

       Koinly is cryptocurrency tracking software for taxes.  It will import your transaction history from over 300+ exchanges and wallets, and will create tax documents for reporting.  It supports tax reporting for over 20+ countries.

       Benefits

       • Easy import from 300+ exchanges and wallets
       • Track your portfolio and ROI
       • Create and download tax documents directly to your accounting software
       • Supports 20+ Tax jurisdictions

   • • Coinledger.io

       

       Coinledger.io is tracking software developed to save you time and headache when doing your taxes.  It is a trusted TurboTax partner and can easily import all of your historical data.

       Benefits

     • Easily import from a wallet, a DeFi protocol, or an exchanges
     • International tax reporting
     • Export to Turbo Tax
     • Cryptocurrency tax guides

FAQ

Do I have to pay taxes on cryptocurrency?

Yes, cryptocurrency profits are considered income, and you will be required to pay taxes on them.

Can I track my profits manually?

Yes, manual tracking is possible.  If however, you are running a larger operation and/or take part in trading/DeFi, it is probably worth your time to consider using software.

Do I need an accountant?

For a small mining operation you may be able to manage your taxes without an accountant.  However, a good accountant who is familiar with the tax laws governing cryptocurrency can be well worth the cost.  The complexity of filing taxes for a business, versus an individual make an accountant a good investment.  FYI, you may be able to write-off the cost of the accountant against your revenue.

Do you use tracking software to manage your crypto farm?  Let us know in the comments.

Mike Humphrey

Hi I’m Mike, an active crypto investor DeFi enthusiast and crypto miner. I have been involved in crypto since March of 2021 and in DeFi since May 2021.

I’m also an avid outdoor adventurer!

MykHumphrey.com

mykhumphrey.com

January 3rd 2022| Mike Humphrey

Proof of Work Vs Proof of Stake

To secure the Ethereum blockchain, a network of decentralized validators is required.  Validators review and approve all transaction that happen on the blockchain, and ensure its security.  Currently the majority of Ethereum transactions are validated by crypto miners.  By solving cryptographic equations, the miners review and accept transactions and add them to the block chain.  This is called proof of work.  Since inception, Ethereum has been trying to move away from proof of work to proof of stake.  In a proof of stake validation system, investors stake their existing Etheruem which is then used to review and validate transactions.  Proof of stake is much less energy intensive and is therefore more environmentally friendly.

Ethereum 2.0

Ethereum 2.0 will happen when the blockchain fully transitions from proof of work to proof of stake.  The Beacon Chain which went live December 1st of 2020 was the first step in moving to poof of stake.  It currently operates in parallel to the Ethereum Mainnet.  When ETH 2.0 goes live, the two chains (Mainnet and Beacon), will merge and validation will be by proof of stake rather than crypto mining.

Ethereum 2.0 Execution Plan

1. Beacon Chain

   Introduction of the Beacon Chain and Proof of Stake to Ethereum.

2. The Merge

   The two blockchains (Mainnet and Beacon) will “dock” and the Beacon Chain will become the settlement layer for Ethereum.

3. Shards

   Creation of multiple blockchains that run concurrently. The goal is to increase the transaction throughput of the Ethereum network by adding 64 shards.  Each shard will function as its own blockchain that can concurrently settle transactions.

What is Ethereum Staking

Staking is the act of depositing Ethereum in order to validate the blockchain.  In order to set up a validation node, a deposit of 32 Eth is required to activate the validator software.  Validators are responsible for storing data, processing transactions, and adding new blocks to the blockchain.  In return validators earn ETH rewards.  Staking is easier than mining, and the more people who stake, the more decentralized and secure the network becomes.  When staking your ETH, it is locked in until after the merge.  However, there are several DeFi staking applications that require less than 32 ETH, and give you access to your capital.  Read on to find out more.

FAQ

Can anyone run a node?

Yes, anyone can host a validation node as long as they have the minimum 32 Eth.  A node operator is required to be online 24/7 and there are penalties incurred if there are operating issues.

Do I need to have 32 ETH to stake?

No, you do not need to have 32 ETH to stake.  A node requires a full 32 ETH, but there are pools available that allow you to combine your capital with other investors.  The pool then runs the node on your behalf.

When does ETH staking start?

ETH staking started in December 2020 when the Beacon Chain went live.

When does ETH 2.0 go live?

The transition to proof of work has been a long process with significant technical challenges.  The current estimated  date of launch is Q1 of 2022.  You can read our news article about Eth 2.0 to find out more details.

How to Stake Ethereum

There are three main methods for staking your Ethereum; through an exchange, through a DeFi protocol, or running your own node. Each method has different benefits and drawbacks.

Exchanges

A quick and easy way to stake Ethereum is through a centralized exchange.  Kraken, Binance and Coinbase all have options to stake.  Exchanges pool your ETH with that of other users to create nodes.  You do not require a full 32 ETH in order to stake on an exchange.

• Kraken
• Binance
• Coinbase

ETH 2.0 Staking Pools

An Ethereum 2.0 staking pool lets you combine your capital with other stakers.  It significantly lowers the barrier to entry and you are not required to run a node.  For smaller investors who don’t want to deal with the hardware requirements or don’t have the minimum 32 ETH, it is a good option.  Some pools have also found workarounds to give investors access to their staked ETH before the lock-in period is finished.  When you deposit your ETH into one of these pools, the pool owners issues a token worth the same amount as the deposited ETH.  This gives stakers access to their capital, while still allowing them to reap the rewards.

• Lido.fi

  Lido is a DeFi staking platform for ETH 2.0. Lido allows users to stake their ETH without locking in their assets or maintaining hardware. Users can stake with any amount of ETH and help to secure the platform.

  How it Works

  For each ETH staked on Lido the investor receives an stETH token on a 1:1 basis.  The stETH represents the staked ETH.  It can be used like regular ETH to earn yield in other protocols.  An investors stETH balance is updated on a daily basis to reflect staking rewards and/or penalties. Through stETH stakers receive their rewards in real-time.

  Lido is a DeFi application, it has been audited by Quantstamp and Sigma Prime. However, audits do not guarantee that protocols are safe. Please be sure to read the white paper and do your own research before investing.

  Find Out More

• Rocket Pool

  Rocket Pool is a decentralized staking platform for ETH 2.0.  Rocketpool offers two ways to become a staker.  The first is to stake and run a node, the second is to provide capital only.

  How it Works

  Become a Validator
  In order to become a validator on rocket pool, you must invest 16 ETH.  Rocket Pool will start a node on your behalf by matching your 16 ETH with 16 ETH from the pool.

  Become an Investor
  As an investor in the pool you can deposit as little as 0.01 ETH.  Your funds will be combined funds from a validator to create and to run a node.

  Access to Your Capital
  When an investor deposit ETH into Rocket Pool they receive rETH tokens in exchange.  The value of rETH increases over time.  It increases in value based on the rewards the pool receives.  At the start of the pool, 1 rETH was equal to 1ETH, but over time, the rETH increases in value and because the pool has increased in size due to rewards.  This method of capturing rewards may have certain tax advantages versus the re-base method used by Lido. This depends on you tax jurisdiction and how a taxable event is defined in terms of cryptocurrency.

  As with Lido Rocket Pool is a DeFi protocol. Before investing be sure to read the white paper and do your own research.

  More Info on Rocket Pool

• Other Pools

  Etherum.org has a full List of Eth 2.0 Pools be sure to check it out for more options.

Run an ETH 2.0 Node

For investors looking to stake on their own without the support of a pool you can set up and run your own node.  You will require 32 ETH, and will need to run an Eth 1.0 and Eth 2.0 client in order to verify transactions.  The benefit of running your own node, is full control, and there are no pool fees.  Below are the minimum requirements to run a node.

System Requirements

• Hard Drive
  • SSD – In order to manage read/write speeds
  • 1TB+ – Must run both Eth 1.o & Eth 2.0 Clients
    • As of Feb 2021, Eth 1.0 Mainnet was ~400GB and growing at ~1GB/day
    • Sharding will increase the required storage capacity when it comes online
• CPU/RAM – Dependent on your client
• Internet – 24/7 availability
  • Bandwidth should not be throttled or capped
  • Bandwidth – 700-800 MB/hr (this is likely to increase)

To become a validator, head to Eth2 Launchpad and follow the required steps.  Below is a list of several Eth 1.0 and Eth 2.0 clients with links to their github pages.  You can also take a look at the Eth 2.0 checklist for more details on requirements.

Eth 1.0 Clients

• Geth
• OpenEthereum

Eth 2.0 Clients

• Teku
• Lighthouse
• Lodestart
• Nimbus
• Prysm
• Shasper
• Yeeth

Conclusion

Whether your are looking to run your own node, or to pool your ETH with other investors, staking is a great way to earn a return.  Running your own node requires some technical know how and the willingness to take on the risk of operating your own hardware.  However, exchanges and DeFi platforms offer an alternative without the headache.  Many of the DeFi protocols have found workarounds to allow you to use your locked in ETH and avoid the illiquidity issues.

Have You staked any ETH or do you run a node.  Let us know in the comments.

Mike Humphrey

Hi I’m Mike, an active crypto investor DeFi enthusiast and crypto miner. I have been involved in crypto since March of 2021 and in DeFi since May 2021.

I’m also an avid outdoor adventurer!

MykHumphrey.com

mykhumphrey.com

December 6th 2021| Mike Humphrey

What is Gas in Crypto

What is Gwei

If you have ever created a transaction on Ethereum, you may have noticed that gas prices are shown in Gwei.  Gwei is the smallest possible unit of Ethereum.  1 Gwei is equal to 0.000000001Eth or 10^(-9) Eth.  Conversely 1 Eth is the equivalent of 1 billion Gwei.  Gwei is a useful denomination for calculating Ethereum gas prices.

How to Check Ethereum Gas Prices

Before sending a transaction, you may want to check the current gas prices.  There are several websites that monitor the current and historical gas prices on the Ethereum network.  If you are performing transactions on the Ethereum mainnet where fees can be quite high it’s worthwhile looking for optimal time windows.

• ethgastation.info
• ethereumprice.org

Metamask Gas Fee Settings

When performing a transaction using a Metamask wallet, the gas fees are automatically chosen for you. To modify the recommended rates click on edit above the gas fees in the approval window.

If you are going to decrease the gas price, it’s recommended that you double check one of the sites above, to see whether your settings are too low.  Network congestion and low fees are causes of stuck transfers.  If you have set your gas price too low, your may have to fix a stuck transaction.

FAQ

Why Are Ethereum Gas Prices So High?

Ethereum gas prices fluctuate based on demand.  The more people looking to perform transactions at the same time, the higher the gas price.  If you are looking for lower gas prices, try using Etheruem during non-peak hours, or look at using one of the many layer 2 options.  Layer 2 solutions use different techniques to lower prices and increase speeds. Polygon, Avalanche, Fantom and Optimism are several of the many solutions currently available.  Thinking of moving to Polygon, read our Polygon Bridging Guide.

What is ETH 2.0 and will it decrease gas fees?

Eth 2.0 is the transition of Ethereum from Proof of Work (PoW) to Proof of Stake (PoS).  Proof of Work requires crypto miners to use computers to solve mathematical equations in order to validate the block chain.  Proof of Stake on the other hand validates transactions with staked Ethereum.  The transition to Eth 2.0 is expected to decrease gas fees.  Validators will no longer have to pay for energy intensive mining, which reduces the cost required to validate transactions.  This being said, currently there is only a small portion of Eth staked, and there will likely be a spike in gas fees during the transition, until sufficient Eth has been staked.  Like PoW, supply and demand will dictate the amount of Eth staked vs gas fees.  As demand increases high gas fees will be paid, which increases the return on staked Eth, making staking a more attractive investment.

Have you staked an Ether? Let us know in the comments

Mike Humphrey

Hi I’m Mike, an active crypto investor DeFi enthusiast and crypto miner. I have been involved in crypto since March of 2021 and in DeFi since May 2021.

I’m also an avid outdoor adventurer!

MykHumphrey.com

mykhumphrey.com

Cryptocurrency Congressional Hearing

Chief executives of six cryptocurrency companies testified before the House Financial Services Committee on Wednesday.  During the five hour session the committee asked questions about cryptocurrency, digital assets and the potential impact of regulations.  The fact finding mission included questions ranging from what is Web3 to what are stable coins, and what are the impacts of heavy handed regulations on the burgeoning industry.  When asked whether decentralized finance was just another form of the current financial system, Mr Allaire responded by saying “I really do believe we are building a new global economic infrastructure layer.”

The transparency and immutability of blockchain was discussed and its benefit to investors, with witnesses urging congress to consider cryptocurrency as a step change in the financial system that could be regulated using existing methods.  It was suggested that opportunities should be created to bring investors into the system safely, similarly to the development of ETF’s and Mutual funds that allow investors to diversify risk without the required knowledge to analyze equities.

Open source vs. closed loop systems like stable coins and DAO’s were recommended over a Central Bank currency and limited access to investment vehicles with accredited investor limitations.

The following Video by Cnet Highlights is a 12 minute summary of the hearing.  If you have the time, we highly recommend watching.

Abracadabra Trader Joe Drama

DeFi drama spilled out onto twitter this week when when @Danielesesta and @traderjoe_xyz started throwing insults at each other over pool subsidies on the Trader Joe platform.  Trader Joe the primary swap platform on Avalanche and @Daniel the creator behind Popcicle, Wonderland and Abracadabra traded blows over the pool rewards announced for AVAX/USDC being much higher than the AVAX/MIM pool (MIM is a stable coin backed by interest baring crypto assets).

$JOE incentives on AVAX/USDC are 3.5x higher than AVAX/MIM incentives, yet volume and liquidity is higher on $MIM . We keep giving free money to the suits and that’s how they keep winning. Together we can change this. pic.twitter.com/nuXZ4l7H7i

— Daniele 🧊🧙‍♂️ (🎩, 🎩) (@danielesesta) December 8, 2021

70% of the AVAX/MIM farm is currently owned by Wonderland, diluting yield for you, the people. We keep giving money to large mercenary funds and that’s how they keep winning. Together we can change this. https://t.co/eqGgOK6dKP

— Trader Joe (🎩,🔺) (@traderjoe_xyz) December 8, 2021

The issue I have here is that ohm-forks are focused on emotion and temper rather than sound decision-making and diplomacy. I get shit on for taking decisions for JOE holders but nobody talks about the fact that time devs choose how to spend their DAO money https://t.co/fwEm1Mnt2X

— Trader Joe (🎩,🔺) (@traderjoe_xyz) December 8, 2021

Both xJoe and wMemo have seen a drop since the spat broke out.  Here’s hoping that they can forgive forget and get back to business.

From all of us here at the Crypto Current, keep on HODLing on and we’ll see you on the moon!!

Pythia

cryptopythia.com

DeFi Kingdoms Quests Live

DeFi Kingdoms announced this week that quests have finally gone live.  As of November 29th 2021, you can now access quests via the professions area in the game.  Fishing and foraging quests are currently available with more to be released soon.  Up to 6 heroes at a time can take in a given quest, with XP and new in game items as the rewards.  Vendor Zada is also live, and you can start trading your quest items for gold or save them for future use.

Patch v1.11.0 has gone live with the following NEW FEATURES:

• It’s finally here! Let’s go questing! Visit Fisher Tom or Woodsman Aurum to get started.
• Standard questing cost is 7 stamina per run. Heroes with a main profession that matches the chosen quest will have a reduced cost of 5 stamina per run.
• Updated art for the Professions zone.
• New Professions music to get you in the questing mood.
• Dozens of new in-game items! (Some are still hidden.)
• In-game item tokens have been added to the token list for easy access.

TIMELINE:

• December 3rd – Item shop opens up. More inventory arriving soon.
• December 8th –  Meditation Circle should be fully charged up!
• December 15th – Gardening Quests.
• December 22nd –  Mining Quests.
• January: Land NFTs begin to roll out!

In more exciting news, a new realm, Crystalvale was also announced this week.  Read our guide all about how to get started in DeFi Kingdoms.

⚔ Really exciting news, Heroes! We’re introducing the upcoming launch of a new realm in the kingdoms…

❄🏰 DeFi Kingdoms: Crystalvale is coming to the #Avalanche blockchain!@avalancheavax #defikingdoms $JEWEL $CRYSTAL $AVAX pic.twitter.com/rwCOsymKwJ

— DeFi Kingdoms (@DefiKingdoms) December 2, 2021

Terra Luna  On the Rise

The Terra ecosystem is heating up.  Luna, Terra’s native staking and governance token has seen a 60% surge in value within the past week reaching new all time highs. With exciting projects like Astroport, Pylon, Whitewhale and Mars coming online, the Terra ecosystem is gaining some real traction.  The lock drop for Astroport begins December 6th for those who have staked on Terra.

Astroport is a new automated market maker(AMM) that will introduce multiple pool types to Terra – a traditional constant product AMM similar to Uniswap, a Stableswap Invariant pool type similar to curve finance, and liquidity bootstrapping pool type similar to Balancer style pools.  Astroport has a highly flexible architecture which will allow the protocol to continue to develop novel pool types.  One of the most anticipated aspects of Astroport is the Astro Generators, which will allow for dual farming opportunities using protocols like Anchor.

$UST, Terra’s USD pegged stable coin has seen an increase in acceptance with recent partnerships with Curve finance and Abracadabra on Ethereum mainnet.  As the $UST stable coin market cap grows and it is accepted across a wider variety of chains, Terra is sure to follow.  Terra ranks number 5 in smart-contract chains based on TVL with around 12.6 Billion.  It is also partnering with Metaverse games like Summoner’s War.  Keep an eye on Terra in the future, or get involved now with projects like Anchor and Mirror who offer some great returns on stable coins.

From all of us here at the Crypto Current, keep on HODLing on and we’ll see you on the moon!!

Pythia

cryptopythia.com

November 29th 2021| Mike Humphrey

What is Harmony (ONE)

Harmony (ONE) is an Ethereum layer 2 solution that is fully EVM compatible.  Started on the Binance Launchpad, it went live in May of 2019 as a decentralized blockchain platform.  It’s goal is to bridge scalability and decentralization for fungible and non-fungible tokens.  It combines low gas fees (paid in ONE token) and fast transaction speeds.  Harmony (ONE) is home to the crypto gaming platform DeFi Kingdom.

Harmony Wallets

Any Ethereum compatible wallet will work on the Harmony (ONE) network. We recommend Metamask due to its popularity and ease of use.  Below is a list of wallets that will work on Harmony.  For more info and other wallet options read our article about cryptocurrency wallets.

• Metamask
  • How To Add Harmony to Metamask
• Harmony ONE Wallet
• Trust Wallet

How to Transfer Funds to Harmony

In order to start using Harmony you will need to transfer funds to the Harmony network.  You can do this in one of two ways – purchasing on an exchange or transferring from another network through a bridge.  If you already have funds on Mainnet or on another layer 2 solution proceed to Option 2.

1. Buy ONE Token on an Exchange

   In order to send funds from an exchange to Harmony you will first have to purchase the ONE token.  If you have a Crypto.com account, you can do this directly without fees.  See the guide below for purchasing and transferring ONE from Crypto.com to Harmony.  Prior to doing this, you must set up your wallet on the Harmony Network (Harmony to Metamaks Guide).

   

   Crypto.com

   1. Purchase One

      To purchase ONE sign into your Crypto.com app, and select buy.  Search for the ONE token.  Once selected, choose your payment method, the amount you want to purchase and click purchase.
      

   2. Transfer One to Harmony Wallet

      Once the transaction has been approved and gone through on Crypto.com, you can then transfer directly to your wallet.  To do this, open the app, and choose transfer.  Select withdraw, and choose an external wallet as the destination.
      

      Add your wallet to the white list by clicking the + symbol in the top right and choosing wallet address.  Select the ONE token.

      
      In the new pop-up, choose ERC20 as the network, and enter your wallet address. You can use the QR code and camera on your phone to prevent entry errors.  Add a wallet name so you can distinguish the wallet after.  Click continue and follow the required steps.  If you have 2FA activated, you will need to enter in your security code to complete the transfer.
      Crypto.com will confirm the transfer and your funds will appear in your Harmony wallet.  If you are using Metamask, you may need to add the ONE coin before you will be able to see it in your wallet. (Harmony to Metamask)

2. Bridge Funds to Harmony

   If you already have funds, or ERC20 tokens on a different chain that you would like to transfer to Harmony, you can bridge these assets over.  Be sure to check the list of Harmony’s ERC20 (HRC20) tokens before transferring.  Depending on the location of your assets, there are different bridging protocols available.

   • • Harmony Bridge (Mainnet & Binance)

       The Harmony Bridge can transfer ERC20 tokens from either the Binance Smart Chain or Etherum Mainnet.  Be aware if you are transferring from Ethereum Mainnet, the fees may be quite high.  If you are transferring from a layer 2 (Polygon, Fantom, Arbitrum, Avalanche, etc) use one of the other options below that allow you to transfer directly without having to go through the Mainnet.

     • Synapse (Multi-Chain)

       Synapse is a cross chain swap protocol that allows you to transfer directly from one layer 2 solution to another.  Synapse also offers several cross chain pools as well as their own nUSD & nEth wrapped tokens.  Use synapse if you have funds currently sitting on an L2 chain that you wish to transfer to Harmony.

     • Anyswap (Multi-Chain)

       Like synapse, Anyswap is a cross chain swapping protocol that allows you to bridge assets from one layer 2 solution to another, without the fees of going through the Ethereum Mainnet.

     • Terra Bridge (Terra)

       For users of the Terra ecosystem, the Terra bridge allows you to send assets from Layer 1 to Terra, as well as from Terra to Harmony or Binance.  If you have assets on the Terra ecosystem that you want to transfer to Harmony, the Terra bridge with its low fees is the best option.

Where to Buy One Token

Once you have funds on the Harmony chain, you will need to have One token in your wallet in order to pay gas fees.  When you first bridge funds to Harmony you should receive an airdrop of ONE that can be used for your first transactions.  In order to get more you will need to use a swap protocol.  The following are two swap protocols active on Harmony.

• • Sushiswap
  • ViperSwap

Have you transferred funds to Harmony? Whats your favorite layer 2 solution? Let us know in the comments

Mike Humphrey

Hi I’m Mike, an active crypto investor DeFi enthusiast and crypto miner. I have been involved in crypto since March of 2021 and in DeFi since May 2021.

I’m also an avid outdoor adventurer!

MykHumphrey.com

mykhumphrey.com

Talecraft.io

The creators of Talecraft, the newest crypto game releasing on the Avalanche network, have had a busy November.  This week Talecraft went live on the Fuji- C test net, giving users the first chance to try out the game.  The funding round on Avalaunch also closed this week on November 23rd and was the the Avalaunch’s biggest IDO offering to date.

Talecraft is a PvP, play-to earn online board game, that allows users to craft in-game NFT cards and use them to compete with other players.  $Craft, the in-game token is used to open chests and mint new cards.  Players then compete with others and earn AVAX rewards.

$CRAFT will available to the public on Trader Joe on November 26th.

India Banning Private Cryptocurrencies

In a move to create a framework for government sanctioned digital coins, India’s government will ban most cryptocurrencies.  A bill, planned to be introduced to parliament Monday, will prohibit all private cryptocurrencies in India.  Authorities have cited concerns that digital money may lead to illegal acts like money laundering, drug trafficking and terrorism as justification for the move.  In 2018 India banned the trading of digital currencies, but it was repealed in 2020.  India is one of the fastest growing crypto markets in the world and it’s growth has spurned concerns over control of the emerging market.  There is a growing anxiety by many governments about cryptocurrencies, with China banning all cryptocurrency in September, and regulations being introduced in many parts of the world. 2

The Metaverse  – A 1 Trillion Dollar Market?

According to the crypto investment firm Greyscale, the Metaverse could represent over a 1 trillion USD annual revenue market.  In a report released Thursday “The Metaverse, Web 3.0 Virtual Cloud Economies,” Greyscale explores the opportunities that could result using the blockchain as the backbone for gaming, social media and online spending.  They estimate that virtual gaming could grow to a 400 billion USD market by 2025, with much of the spending being in-game.3

NFT – The Word of The Year

Collins Dictionary has chosen the term non-fungible token (NFT) as the Word of the Year. Collins defines an NFT as a non-fungible token: a unique digital certificate, registered in a blockchain, that is used to record ownership of an asset such as an artwork or a collectible. 4  A small step for a dictionary, but a giant leap for a crypto kitten.

From all of us here at the Crypto Current, keep on HODLing on and we’ll see you on the moon!!

Pythia

cryptopythia.com

November 22nd, 2021| Mike Humphrey

How to Invest in Cryptocurrency

Crypto investing can be as simple as buying a coin and watching it grow, or it can involve multi-tiered investment techniques that include leveraging your crypto to increase your rewards.  Below are some ways to get your cryptocurrency working for you.  Lets take the red pill and see how deep the rabbit hole goes.

Buy and Hold Crypto

Buying and holding is one of the most basic techniques for making money on your crypto.  It is a pretty passive strategy and involves selecting a coin or token that you believe will succeed in the long run.  Holding cryptocurrency for the appreciation can have huge returns.  For example Bitcoin’s 10 year compounded annual return is 200%, that outperforms the average annual return of the stock market (10%) by 20x.  If you are more comfortable with risk, you can consider  altcoins (coins other then Bitcoin).  SHIB for example has grown 7.7 million % since it’s inception.  If you are good a picking winners, buy and hold can be a great hands off strategy.  With big returns though, comes big risk.  Altcoins are similar to penny stocks, winners can win big, but there are lots that don’t win, especially in cryptocurrency where the barrier to entry for new coins is quite low.

Buy and Hold Strategies

Dollar Cost Averaging (DCA)

Dollar cost averaging is a technique where you purchase an asset at consistent intervals.  Many cryptocurrency platforms will set up automatic purchasing for you, making this a very easy hands off strategy to follow.  Dollar cost averaging levels out your purchase price.  Over the long-run this allows you to take advantage of gains without being impacted by price fluctuations.  This is especially important with volatile assets like cryptocurrency where prices can fluctuate by +/- 20% a day(or more…).

Buying Winners

Buying the winners involves identifying the top assets that have increased the most within a given time frame.  The idea, is that these assets have momentum, that you expect to continue.  By purchasing the winners you are looking to continue to ride the wave.  This strategy can be combined with dollar cost averaging.

Buying Losers

To purchase losers, you identify the lowest performing assets in a given time frame.  The idea behind this strategy is to purchase an asset at a low price, with a large potential upside.  You may be lucky enough to find a diamond in the rough.

There are many more possible strategies.  We recommend if you are going to buy and hold, that you use dollar cost averaging with all of these.

Trading Crypto

One step up in complexity from the buy and hold strategy is trading crypto.  With this strategy your goal is to buy low and sell high, or sell high and buy low.  Investors experienced with day trading in the stock market will be familiar with this investment technique.  To better take advantage of the market, you can consider looking at short selling and options trading.  Being a very volatile market, trading can offer opportunities for investors who use strategies that depend on price fluctuations.  There are significant opportunities in cryptocurrency for experienced traders.

DeFi

All of the above strategies can be performed on exchanges.  These exchanges are usually a combination of Fiat/crypto where you use fiat to purchase and sell cryptocurrency.  The strategies below involve smart contracts, where you allocate your assets to a protocol, and in exchange earn a return.  Read our article about DeFi to learn more.

Staking (PoS)

In terms of complexity, staking is the first level in DeFi.  Proof of stake blockchains (Ethereum and Cardano) offer opportunities for investors to earn rewards for putting up their cryptocurrency to be used to verify the block chain.  This involves loaning your cryptocurrency to the blockchain for a set period of time.  Your assets are locked into the proof of stake protocol and used to verify transactions on the blockchain.

Staking Ethereum

• Lido

Staking Cardano

• Yoroi Wallet
• Deadalus Wallet

DeFi Returns

The world of DeFi is a very dynamic place, with new protocols being developed every day.  The main premise behind DeFi is lending and borrowing assets to provide liquidity to protocols.  In return investors earn a return on their liquidity.

Lending & Borrowing Platforms

lending & borrowing applications are central platforms for the DeFi space.  You deposit your assets into the protocol and earn an interest on your deposit.  You can then borrow against these assets, either in the same currency or in another currency offered by the platform.  You are required to pay interest on your borrowed asset which is secured by your deposit.  If the loaned asset reaches a threshold value versus your deposit, either due to interest accumulation or price fluctuation, then your position will be liquidated.

• Aave
• Compound
• Anchor

Liquidity Pool Swap Fees

Liquidity pools provide coins for swap protocols.  In order to exchange from one coin to another you must find someone to trade with.  Traditionally in centralized finance you would do this at a bank.  In DeFi, swap protocols have pools of coins that have been provided by third party users.  When you wish to exchange, the swap protocol takes your coins and gives you a different coin from the pool and charges a small fee for the service.  Investors who have added coins to the pool receive a portion of those fees as a reward.  Liquidity pools can be highly lucrative, but due to their nature are subject to impermanent loss.

• Curve
• Uniswap

Native Token Rewards

Protocols offer native tokens that provide additional return for users who have added liquidity.  The goal of the protocol is to increase liquidity to a point where the platform can become large enough that it is ubiquitous.  As rewards are distributed it decreases the value of the native token, meaning the rewards are deflationary and not sustainable in the long-run.  Often native tokens can be staked in the protocol to give the owner governance rights.  Native tokens are often used in yield farming strategies and then exchanged for stable coins or Eth/BTC.

• Curve
• Polygon (Liquidity Program)
• Avalanche (Liquidity Program)

Protocol Fees

Protocols create non-governance tokens that can be staked to receive a portion of the platform revenue.  The tokens can be purchased or received as rewards, and are then staked back in the protocol.  This provides the protocol with additional funds and in return the investor gets a share of the revenues.

• Sushi Swap

Arbitrage Opportunities

Liquidity pools depend on arbitrage.  Token prices in a pool are regulated by users exploiting price differences between the pool and actual market rates.  By their very design, they present investors with the opportunity to capitalize on price differences.  There are a few protocols that allow investors to automate and take advantage of arbitrage opportunities.

• Stabalize

Options Protocols

Options protocols function the same as options do in a centralized market.  Put or call options can be purchased based on the expected future value of an underlying asset usually Bitcoin or Ethereum.  Two protocols that offer option trading in DeFi are listed below.

• Ribbon Finance
• Hegic

Insurance Protocols

Insurance protocols offer users the ability to insure their funds against unforeseen circumstances.  They can be used to insure specific tokens, or even tokens in specific protocols.  Insurance providers require liquidity to cover insurance claims and users who provide liquidity earn a portion of the fees paid by insurers.

• Unslashed finance

Conclusion

Cryptocurrency is an exciting place, the speed of the changes happening, especially in DeFi is astounding.  Cryptocurrency is so much more than just an asset to hold or trade for a profit.  For those interested in taking the time to learn, and become comfortable, there are great returns to be had.  Be forewarned, DeFi is still the wild west. With new advancements comes risk.  Be sure to do your own research before investing in any project!

How are you investing in crypto? Let us know in the comments.

Mike Humphrey

Hi I’m Mike, an active crypto investor DeFi enthusiast and crypto miner. I have been involved in crypto since March of 2021 and in DeFi since May 2021.

I’m also an avid outdoor adventurer!

MykHumphrey.com

mykhumphrey.com

Crypto Arena

Crypto.com just bought itself an early Christmas gift.  The Staples Center in downtown Los Angeles – home of the Lakers, Clippers, Kings and Sparks is to be renamed the Crypto.com Arena.  The new logos will be released Christmas day and signage is to be updated by June 2022.  Crypto.com paid 700M USD for the naming rights for 20 years, making it one of the biggest deals in sports history. Crypto.com’s Kris Marszalek, said “people will look back at this moment as the moment when crypto crossed the chasm into the mainstream.” Chief Executive Dan Beckerman said that “Crypto.com [was] looking for the most unique branding platform to make a statement and drive adoption, and we [were] looking for an innovative, forward-thinking company to help us chart a course for the future of sports and entertainment events.” 1

CRO, Crypto.com’s token has soared since the news broke, reaching a new all time high of 0.59 USD up over 180% this month and 800% since the beginning of the year.  The gains  have been attributed to the new deal with the Arena, and their increased marketing efforts.  They have brought on Matt Damon as a spokesperson.

US Infrastructure Law to be Modified?

The infrastructure bill signed by U.S. President Joe Biden on Monday, will require crypto miners and software developers to report customer information to the IRS.  This could be challenging, if not impossible, due to cryptocurrencies decentralized nature.  New legislation, the “Eliminate Barriers to Innovation Act of 2021,” was introduced to congress this week, with the goal of clarifying whether crypto coins/tokens are a security or commodity.  It proposes that a working group composed of industry experts, the SEC, and CFTC take a year evaluate the legal framework for cryptocurrencies.  It would also look at how private key management and cybersecurity are treated under the law and how risks can be mitigated for investors.

From all of us here at the Crypto Current, keep on HODLing on and we’ll see you on the moon!!

Pythia

cryptopythia.com