🚀 Re:crypto Chronicles: Navigating the Crypto Wild 🌍

Welcome back crypto fam 👪 to another edition of Re:crypto your basic crypto source breaking it down so that even your pet 🐶 can understand. The past few weeks we had been going over wallets 🔑 hot wallets 🔥 and cold wallets ❄️ and different wallet brands you may consider. This week i wanted to dive deeper into wallets and how you can use them and better protect yourself out there in the crypto wild 🏕️.

Today’s Lesson:

A few weeks ago when we started going over the different types of wallets you could use when it comes to the realm of cryptocurrencies. We mentioned custodial wallets 🏦 and non-custodial wallets. Today i wanted to drill down deeper into what those two terms mean and why its important to know the differences.

What is a custodial wallet? Think about when you get paid what do you do with your paycheck outside of spending it right away you may want to save some of it for a rainy day ☔️. But what do you do you go to the bank 🏦 and deposit it into you savings account. The bank is now the custodian of your money in traditional finance this is what your taught to do. I know your probably think aren’t banks supposed to be safe? Sorry to say that banks can go bankrupt 💸 when a phenomenon called a bank run 🏃‍♂️🏃‍♀️ occurs. As you may remember from earlier this year when Silicon Valley bank, Signature Bank and First Republic bank all went bust 💥. Now is your money safe these banks were FDIC insured up to $250,000 so yes but anything above that amount goes poof buy buy 👋.

Now in crypto if you choose to go with a custodial wallet these are usually with centralized exchanges like Coinbase and Kraken. They are not FDIC insured ❌ this is important to know the crypto realm does not have certain safety nets that the traditional finance world has. I can list several custodians that went bust over the past year Celcius which was touted as being safe (full disclosure i got caught in this one) along with Blockfi, Voyager, and now the Infamous FTX. I know that a custodial wallets benefits may seem convenient but is it really worth the potential cost of your precious crypto investments? 💎

Now we move on to Non-Custodial wallets. Now same example as above you get you paycheck 💵 now you go to the bank 🏦 and cash it. You take that cash 💰 home and stick it in you little piggy bank 🐷 at home. That piggy bank at you home is a non-custodial wallet because you have full control over your money at all times. This option does come with more responsibility but you do have that piece of mind that your cash is safe from that nasty bank run 🏃‍♂️🏃‍♀️.

In the crypto realm this is where the term not your keys 🔑 not you crypto comes from. When it comes to crypto you have two sets of keys a public key 🔑 and a private key 🔑. The public key is like an address 🏡. imagin a hallway with a bunch of doors this is like the blockchain your public key identifies which door is yours on the blockchain and your private key opens the door 🚪 and your crypto is inside thats your non-custodial wallet. A custodial wallet you don’t control your keys so the custodian has access to your funds like a landlord having the keys to your place 🗝️.

Now that thats cleared up we talked about the differences between hot and cold wallets. Now what if i told you that you could combine the two wallets for extra protection 🛡️. This is the combination that i personally use and has been very satisfying and I highly recommend this. Now its not to say that this is the only combination its the one that i’m most familiar with and if i find something i like better i’ll let you guys know because there are new things coming out all the time ⏰.

The combination i’m talking about is Metamask 🦊 and Ledger 🛡️ hardware wallets. Using this combination you are able to download Metamask wallet and add it as a browser extension on your desktop 💻. With Metamask you can create new accounts within the same wallet and add and account for a hardware wallet like Ledger. You can also add a Trezor wallet as well but I just have more experience with Ledger. When you add your Ledger wallet to Metamask your now able to use your hardware wallet address through Metamask. I know this may be hard to understand but think of it like an application on your phone 📱 you can’t use the application unless you physically have your phone 📵. Kind of like a two factor authentication but using a physical device 🔐. So you can use Metamask to interact with the blockchain applications but for any transactions to go through you need to approve it on your Ledger device physically. So with this combination you have usability with Metamask and safety with Ledger. But there are some down falls but they mainly lie with the user you could still fall prey to phishing scams 🎣 and sign a bad contract that allows access all but thats for another edition. Now there you have it the reason for not your keys 🔑 not your crypto and a very useful combo 🤝

Now for the Markets 📈

The global cryptocurrency market cap today is $1.43 Trillion, a 3.1% change in the last 24 hours. Hide

Total cryptocurrency trading volume in the last day is at $71.8 Billion. Bitcoin dominance is at 50.3% and Ethereum dominance is at 16.2%. The largest gainers in the industry right now are Oracles and Real World Assets (RWA) cryptocurrencies.

Bitcoin (BTC) experienced a slight setback, pausing near $36,000, but long-term holders are holding firm, with addresses keeping Bitcoin for over 155 days hitting an all-time high. Conversely, short-term holders (holding for less than 155 days) are at an all-time low, signaling a tightening Bitcoin supply. 📉🔍

Amidst this uncertainty, select altcoins are gaining attention as traders accumulate them. Several alts have broken out of extended patterns, indicating a potential uptrend. For Bitcoin, maintaining above $30,000 is vital. BTC currently trades within an ascending channel, with an upside break suggesting a rally toward $40,000. Conversely, falling below the 20-day EMA ($33,612) could lead to a decline to $31,000. 🚀💰

Ether (ETH), hovering around $1,920, aims to breach the crucial $2,000 resistance. Sustaining above this level could pave the way for a surge to $2,200 and potentially $3,500. A downturn, falling below the 20-day EMA ($1,800), might lead ETH to test $1,746. Cryptocurrency markets remain dynamic, making close monitoring essential for investors. Stay tuned for further updates! 📈💹 🚀🌟

Solana (SOL)Been on Fire🚀💹

Solana (SOL) is currently in a consolidation phase within an uptrend, oscillating between the resistance level at $48 and support at $38. The upward slope of both moving averages and the overbought RSI indicate bullish dominance. A breakthrough above $48 could lead to a challenging battle, potentially propelling SOL/USDT to $60. However, for a bearish comeback, bears need to push and maintain the price below the 20-day EMA ($36.30), initiating a deeper correction towards the 50-day SMA ($27.35). 📉🔍

Now The News:

1. Market Updates:

- BTC Price & Open Interest: Bitcoin’s price hit $36,646, with open interest surging past $16 billion. Analysts warn of potential short-term volatility due to increased open interest. 📈💸

- Altcoin Surge: While Bitcoin consolidates, traders flock to select altcoins, breaking out of basing patterns. Altcoins are in focus, especially as Bitcoin hovers above $30,000. 🌐💹

2. Major Exchanges:

- Binance News: Binance launches a Web3 wallet to promote self-sovereign finance. Binance still dominates among centralized exchanges but faces competition. 💼🌐

- OKX: OKX grows, becoming the second-largest exchange, signaling a shifting landscape in the crypto market. 📈💹

3. Legal & Regulatory Updates:

- SEC Challenges: The SEC faces challenges in hiring crypto experts due to a rule mandating experts to sell all their crypto holdings. 🔍💼

- SBF & FTX: Sam Bankman-Fried (SBF), founder of FTX, found guilty on all counts in a criminal trial. FTX claims climb to 57%. ⚖️💥

4. Financial Institutions & Investments:

- Institutional Interest: Institutional firms project Ethereum to have significant growth potential. Fidelity executive suggests Bitcoin’s value can outpace gold. 🌟💰

- Banks & Custody: Swiss Bank St.Galler Kantonalbank offers Bitcoin and Ethereum custody services. HSBC plans a digital-assets custody service for institutional clients. 🏦💎

5. Technological Advancements:

- Blockchain & Banking: Mitsubishi UFJ collaborates with a crypto exchange for a stablecoin project. Germany’s third-largest bank unveils a blockchain-based digital custody platform. 🔗💼

- Innovation & Adoption: Disney, Alibaba, Google, Square Enix-backed games to utilize Immutable zkEVM. Adidas and Bugatti collaborate on limited-edition soccer shoes with digital twins technology. 🎮👟

6. NFTs and Web3:**

- NFT & Market Growth: NFT sales spike to $129M in November, with Blur leading the charge. Web3 wallet focuses on seamless onboarding, choosing a custodial approach. 🖼️🌐

7. Global Crypto Adoption:**

- Dubai & Thailand: Dubai advances crypto adoption, WadzPay secures VARA initial approval. Kasikornbank, Thailand’s second-largest bank, acquires a local crypto exchange. 🌍🏦

8. Miscellaneous:**

- PayPal & Stablecoins: PayPal faces scrutiny as the SEC subpoenas PYUSD stablecoin. Circle terminates consumer account support for stablecoins. 💼🔍

- Crypto-Friendly Banking: Revolut named the most crypto-friendly bank in the UK. Swiss Bank SGKB partners with SEBA for crypto custody and trading services. 🏦💹

That's a wrap, crypto fam! 🚀🔥 Another action-packed edition of Re:crypto is in the books. Stay tuned for more thrilling updates next time. See you then! 👋😊 #StayCrypto #StayInformed