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Cryptocurrency Wallet Development Realizes the Future of Payments

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Codezeros

The advancement in technology is undeniable. And everything nowadays is available at our fingertips. In recent years, the number of users investing in digital currencies is rising. Thus, Ethereum and Bitcoin always stay at the peak.

Cryptocurrencies can be stored in various wallet options. This article is going to cover everything you need to know about crypto wallet development.

What is Cryptocurrency?

Cryptocurrencies refer to a type of virtual currency that is secured by cryptography.

Almost every cryptocurrency is created on distributed ledgers and makes use of decentralized networks that are further integrated with blockchain wallet development technology.

How do cryptocurrency wallets function?

  • The crypto transactions are stored in a blockchain network by the wallet that cannot be altered.
  • When a user sends cryptocurrencies to another user, he is transferring the ownership of the coin to the receiver.
  • It consists of both private and public keys that are associated with the currencies.
  • Only if the private key matches the public key, the users are allowed to make a transfer of their digital coins.
  • The private key is used for validating the transaction, whereas the public key is utilized to receive the funds.

Types of cryptocurrency wallets:

The types of cryptocurrency wallets are described below:

  • Desktop wallets:

One can easily download desktop wallets on a PC or laptop. Most of them are secure, and the security will not be compromised until there is a cyberattack.

  • Virtual wallets:

Based on the cloud, virtual wallets are accessible from any location. With the implementation of blockchain technology, it is safer and convenient but is still vulnerable to cyberattacks.

  • Mobile wallets:

Through a mobile app, mobile cryptocurrency wallets can be used. Several retail stores accept payments through this type of wallet.

  • Hardware wallets:

These wallets do not store any private keys of the users online. Instead, the keys are stored on a hardware drive.

  • Paper wallets:

This type of wallet is considered to be the most secure one. It generates printable private and public keys. It can handle easy fund transfer, and it has a QR code facility for user convenience.

Current Cryptocurrency trends in the market:

The first cryptocurrency was bitcoin. And the ones that are developed after bitcoin are often called Altcoins, which serve as the best alternative to fiat currency.

The fluctuation of monetary value, investment growth in the capital, cross-border remittance, and transparency have drastically influenced the market growth.

The leading wallets in 2021:

According to popular providers of wallet development services, Cryptocurrency wallets can be divided into two major categories, namely,

  1. Hardware wallet:

The hardware wallets for cryptocurrency are:

Ledger Nano S: It is a super-secure hardware wallet for cryptocurrency. It has its OS called BOLOS and features 2-feature authentication.

Trezor One: Modern cryptography is integrated with Trezor One. It also uses 2-factor authentication for transaction authentication.

2. Software wallet:

The software wallets for cryptocurrencies are:

Coinbase: It is efficient in creating open financial infrastructure. It has over 35 million users currently.

Gemini: It is accessible via both PC and mobile. Gemini can track real-time cryptocurrency prices. The users can set price alerts to get immediately notified during price fluctuations.

Steps for development of cryptocurrency wallet:

Follow the below processes for cryptocurrency wallet development:

3. Define your cryptocurrency app type:

As there are already existing concepts, you do not need to reinvent. Just learn from your competitors, speed up your development process, and define the crowdfunding app concept.

4. Evaluate the existing market scenario:

It is not time for you to analyze the market. Perform a SWOT analysis for your cryptocurrency wallet development to overpower your competition.

5. Design UI/UX:

Identify user flow and create user-friendly information architecture. And focus on making a high-quality UI.

6. Develop technical architecture and backend:

Aspects like database, UI, service tools, and workflow needs to be considered. After the technical architecture is ready, opt for backend development. Create internally and bind external APIs to build a robust backend.

7. Frontend development:

Work on making a responsive design, and make sure that the user experience is top-notch. The most crucial thing about creating a frontend is that it needs to be reliable.

8. Testing:

Finally, test the app, and compare it with the original requirement document. If any errors or bugs are found, it is fixed by the development team. And the QA team verifies it, and then only it is released.

The necessary features for cryptocurrency wallets:

The must-have features are:

  • User account management
  • QR-code scanning
  • Trading and exchange cryptos
  • Efficient security
  • Currency management
  • Push notifications
  • Seamless onboarding

Conclusion:

The dramatic rise of Bitcoin influenced the global monetary system. And this market will continue to grow and will be the future of digital payments.

If you are unfamiliar with cryptos, you must not commence with the app development hectically. And you must take help from a professional cryptocurrency wallet development company to develop highly secured wallets.

Cryptocurrency Wallet Development Realizes the Future of Payments

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Bitcoin Price Prediction: BTC/USD Price Stables Above $36,500

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Bitcoin Price Prediction – June 9

The Bitcoin price is trading nicely above the $36,500 and the coin must climb above the $37,000 resistance to continue higher.

BTC/USD Long-term Trend: Bearish (Daily Chart)

Key levels:

Resistance Levels: $43,000, $45,000, $47,000

Support Levels: $28,000, $26,000, $24,000

Bitcoin Price Prediction
BTCUSD – Daily Chart

BTC/USD begins to improve today, although many coins are following the footstep of Bitcoin as well. The Bitcoin price also reflected a similar movement as the coin improve in price movement at the moment. Within the first few hours of today’s trading, BTC/USD could have moved up from $32,408 to $36,950 and now $36,530.

Bitcoin Price Prediction: Ready to Move Higher?

The Bitcoin price is yet to cross above the 9-day and 21-day moving average as the pair may be settling in a tight range between $32,000 and $38,000 below the 9-day and 21-day moving averages. In addition, this current session is seeing Bitcoin and other major cryptos exchanging in a good tone.

However, the Bitcoin price and the daily candle are trading at $36,530 below the 9-day and 21-day moving averages. The next resistance levels lies at $43,000, $45,000, and $47,000. However, if the Bitcoin price failed to cross above the 9-day and 21-day MAs; we may see a price cut to break below the channel at $30,000 vital support. Therefore, a further low drive could send the price to $28,000, $26,000, and $24,000 supports. For now, the Relative Strength Index (14) is moving above 40-level, suggesting more bullish signals into the market.

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BTC/USD Medium-Term Trend: Ranging (4H Chart)

Looking at the chart, BTC/USD is clearly facing a lot of resistance near the $36,700 and $36,800 levels. A successful close above the $37,000 level is a must for bullish acceleration. If not, there is a risk of a downside extension below the $35,000 support. If there is a downward move, initial support is near the $34,000 level and the main support is near the $32,000 level, below which there is a risk of another decline towards $30,000.

BTCUSD – 4 Hour Chart

Furthermore, if there are more gains, the $36,500 level is likely to act as a major hurdle in the near term for Bitcoin. So if there is an upside break above the $37,000 resistance, the next stop for the bulls may perhaps be near the $40,000 and above as the Relative Strength Index (14) is likely to move above 60-level, which indicates that additional bullish trends may come into play.

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Bitcoin Price Prediction: BTC/USD Price Stables Above $36,500

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Why Bitcoin’s next breakout may not be an altcoin season signal

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On April 14, Bitcoin (BTC) reached a $64,900 all-time high after accumulating 124.5% gains in 2021. However, a 27.5% correction followed over the next eleven days, marking a $47,000 local bottom.

The popular Crypto Fear and Greed Index reached its lowest level in 12 months on April 25, signaling that investors were closer to “extreme fear,” which was a complete reversal from the “extreme greed” level seen during the Bitcoin rally above $60,000.

This downward move from April 14 to 25 wiped out $200 billion from the altcoin market capitalization. Still, the recovery that followed could serve as a guide on what to expect when Bitcoin finally manages to exit the sub-$40,000 level.

Bitcoin price in USD, Coinbase. Source: TradingView

Altcoins posted a similar trend, bottoming at $850 billion on April 22 but fully recovering to a record $1.34 trillion high on May 10. There is no guarantee that this pattern will repeat, but there is no better source of information than the recent market itself.

Altcoin market capitalization, USD billion. Source: TradingView

Cheaper is not always better

Many investors believe that altcoins consistently outperform when Bitcoin price takes off, but is that an absolute truth?

Although that has been the case in 2021, Bitcoin was the clear winner in the last quarter of 2020 as it surpassed the broader market by 110%. However, analyzing the winners from the late-April bull run could provide interesting insights on what to expect for the next rally.

Top altcoin performances from April 22 to May 9. Source: CoinCodex

Among the top-100 tokens, Ether Classic (ETC), Polygon (MATIC), Waves, and Fantom (FTM) were the clear winners. The winners were either scaling solutions or smart contract platforms, and the sector leader Ether (ETH) also outperformed the market.

80% of the worst performers were sub-$1 coins which is precisely the opposite of investors’ usual expectations. There’s a persistent myth that cheap, nominally-priced altcoins will excel during altcoin rallies, but that clearly was not the case.

Worst performance from the top-100 altcoins between April 22 to May 9. Source: CoinCodex

Timing the market is impossible

Unfortunately, there is no way to predict when the current correction will be over, and altcoins historically do not usually excel during bear trends. This means calling ‘alt season’ at the first sign of Bitcoin’s price recovery is an inaccurate strategy that can lead to financial ruin.

A general rule of thumb for an ‘alt season’ kick-off is two or three consecutive days of 30% or higher accumulated gains on cryptocurrencies with little-to-no development, including Dogecoin (DOGE), Litecoin (LTC), and Ether Classic (ETC).

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Why Bitcoin\’s next breakout may not be an altcoin season signal

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Data shows the ‘Bitcoin price drops ahead of CME expiries’ claim is a myth

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Historically, activity surrounding the Bitcoin (BTC) monthly futures and options expiry has been blamed for weakening bullish momentum. A few studies from 2019 found a 2.3% average drop in BTC price 40 hours before the CME futures settlement date. 

However, as Cointelegraph reported in June 2020, the effect faded away. While 2020 seems to have rejected the potential negative impact of CME expiries, so far, the current year appears to validate the theory. Bitcoin’s price has been suppressed ahead of futures and options expiry in the first three months of 2021.

Bitcoin performance before and after CME expiry, USD. Source: TradingView

Some investors and traders have pointed out that Bitcoin’s incredible rally after the recent futures and options expiry dates has become a trend.

BTC has effectively rallied in the days following the expiry, but expanding this analysis uncovers a less-than-satisfactory trend.

Three consecutive events don’t prove a trend

The past 13 months have been nothing short of spectacular for Bitcoin, as the cryptocurrency posted 788% gains. August 2020 turned out to be the worst month, as BTC presented a 7.5% negative performance. Thus, choosing random starting points within the month will likely show a similar positive trend.

For example, if one uses the “last quarter” moon phase as a proxy, the odds that a rally takes place after each event are very high.

Bitcoin performance after “Last Quarter” moon, USD. Source: TradingView

As depicted above, indeed, Bitcoin rallied after five out of the last six instances. The only conclusion might be that positive trends are the norm rather than the exception during bull runs.

Although there might be some explanation to the reason behind Bitcoin’s end-of-the-month underperformance, these are only hypotheses.

While market makers and arbitrage desks could benefit from suppressing the price after a rally, other forces, including leverage futures longs and call option holders, would balance that out.

Bitcoin price did not drop in three of the last seven expiries

Therefore, it makes sense to analyze the potential price suppression ahead of the expiry instead of looking for explanations for a rally during a bull market.

Bitcoin performance before and after CME expiry in 2020, USD. Source: TradingView

Both October and December 2020 expiries failed to present any negative pressure ahead of such dates. Meanwhile, the 12% positive performance on the five days that preceded the most recent April 30 expiry also puts a big question mark on how meaningful the CME event really is.

Considering there hasn’t been a price decrease ahead of monthly futures and options expiries in three of the last seven instances, this evidence should put a nail in the coffin of the unfounded myth.

As mentioned earlier, trying to develop theories on why sellers acted more aggressively on specific dates is unlikely to yield results.

As shown above, Bitcoin’s price failed to underperform in three out of the last seven expiries. A 57% success rate should not define a trend when a positive performance after a specific date has been proven common during a bull run.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Data shows the ‘Bitcoin price drops ahead of CME expiries’ claim is a myth

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IDEX’s ‘hybrid liquidity pool’ aims to tackle some of DeFi’s biggest problems

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IDEX, a San Francisco-based decentralized exchange, has unveiled new protocol upgrades designed to solve two of the biggest issues with DeFi — slippage and front-running. 

The exchange claims that its Hybrid Liquidity protocol solves these challenges by combining an order book and trading engine with the liquidity pools of an automated market maker, or AMM.

“The novel exchange design protects users from the most glaring pitfalls of AMMs, including failed trades and front-running, by instantly executing trades against the best combination of limit orders and pooled liquidity,” the company said, adding:

“This approach generates higher returns for liquidity providers while also allowing for more advanced trades like stop-loss and limit orders.”

IDEX cites research from Dune Analytics showing that up to 5% of transactions on Ethereum-based decentralized exchanges fail due to complications like “too much slippage or insufficient gas prices.” Data from Etherscan and Dune Analytics also show that roughly 22% of Uniswap transactions between Apr. 15-21 failed.

Uniswap is the second-largest decentralized exchange by trading volume, according to Coingecko. Mdex takes the top spot, based on 24-hour transactions as of Thursday.

DeFi, which stands for decentralized finance, is one of the biggest trends in the cryptocurrency market, but the industry’s rapid growth over the past 12 months hasn’t come without complications. Exorbitant costs, smart contract risks and the higher likelihood of user error are just some of the biggest pain-points dragging on adoption. Security is also an issue, as evidenced by the theft and exploitation of hundreds of millions of dollars worth of DeFi assets.

Nevertheless, DeFi remains on track to grow considerably during the next leg of the bull market. Currently, more than $137 billion has been locked into the ecosystem, according to industry data.

IDEX\’s ‘hybrid liquidity pool’ aims to tackle some of DeFi’s biggest problems

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Glass half full: Bitcoin options traders neutral after 28% BTC price dip

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Bitcoin (BTC) might have recovered from the $47,000 low seen on April 25, but the subsequent 15% bounce was not enough to bring optimism to the BTC options markets. Even at the present $54,000 level, the price remains 17% below the $64,900 all-time high reached on April 14.

The popular Crypto Fear & Greed Index reached its lowest level in 12 months, signaling thatinvestors are closer to “extreme fear,” which is a complete reversal from the “extreme greed” level seen on April 18. This indicator gathers data from price volatility, volume change, social media activity, Bitcoin dominance and recent search trends.

As Bitcoin’s price dropped and then recovered, the more experienced whales and arbitrage desks behind options trading were far from panicking, but their main risk gauge has recently hit a 12-month peak. However, despite these “worsening” conditions, these pro traders are neutral both in skew metrics (options pricing) and the put-to-call ratio (risk exposure).

The adjusted put-to-call options ratio stands neutral

Call options give the buyer the right to acquire BTC at a future date for a fixed price, while the seller is obliged to honor this privilege. For this right, the buyer pays an upfront fee (premium) to the counterparty. Call options are deemed neutral-to-bullish, as they give its buyer the possibility of high leverage with a little upfront investment.

On the other hand, put options provide their buyer a hedge, or protection, from negative price swings. As a result, these are widely used in neutral-to-bearish strategies.

Deribit BTC open interest by expiry. Source: Laevitas

As the above chart indicates, both call and put options are balanced, except for Friday’s expiry. Although this could reflect short-term optimism, a more granular view shows that some ultra-bullish call options dominate the scene. Therefore, by adjusting it to a more realistic price range for the next four days, calls and puts are way more balanced.

Deribit BTC open interest on April 30. Source: Laevitas

Take notice of how the $72,000–$120,000 call options dominate the April 30 expiry. Therefore, considering the $44,000–$68,000 range exclusively, calls represent 48% of the outstanding open interest.

The options pricing risk indicator is neutral

To correctly interpret how professional traders are balancing the risks of unexpected market moves, the 25% delta skew provides a reliable, instant “fear and greed” analysis.

This indicator compares similar call (buy) and put (sell) options side by side and will turn negative when the neutral-to-bearish put options premium is higher than similar-risk call options. This situation is usually considered a “fear” scenario.

On the other hand, a negative skew translates to a higher cost of upside protection, which is generally interpreted as a “greed” measurement.

Deribit 90-day BTC options 25% delta skew. Source: Laevitas

For the first time in 2021, the 25% delta skew has flattened after spending most of the time on the “greed” side. A similar situation emerged on March 25 after BTC corrected 18% from the $61,800 peak 10 days prior.

Overall, the options markets indicators are neutral, indicating a mild lack of trust in the recent $47,000 bounce. On the other hand, the same metrics could be interpreted as positive, considering pro traders did not flip bearish despite the 28% drop in the past 11 days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Glass half full: Bitcoin options traders neutral after 28% BTC price dip

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