Bloqboard- New Kid in the Crypto lending Space

Bloqboard Co-founded by Alex Bazhanau and Bahachuk, allows users to share their cryptos. The firm is offering a lending platform enabling peer-to-peer cryptocurrency lending via smart contracts. The firm lets you share your ERC20 tokens with your buddies, and, in theory, they have to pay you back. The firm recently raised $1.2 million from POlychain Capital to launch a lending system powered by decentralized lending protocols.

Read more at techcrunch

BitGo Crypto Wallet Integrates Digix’s Gold-Backed Cryptocurrency

BitGo’s that attracted players for their patented multi-signature wallet technology is partnering with Digix to bring their DGX gold backed stablecoin. Digix that digitizes physical gold in a secure and trustless manner by backing every DGX by one gram of gold from London Bullion Market Association-approved refiners. The startup is adding compatibility with a gold-backed token whose value is not subject to the wild volatilities of the cryptocurrency world or foreign exchange fluctuations. The integration of Digix also helps deepen liquidity of its ecosystem that currently support 85 cryptocurrencies. This stable-price coin is particularly useful for payments, loans, and anything that requires a more stable store of value.

Read more here at digitalcoinowner

MapleChange Crypto Exchange Hacked

As per a post on twitter an exchange MapleChange said – that “due to a bug,” an unnamed group of individuals managed to withdraw funds, adding that it is conducting a “thorough investigation” and will be unable to make refunds.”

After the “investigation,” MapleChange decided that it would be unable to pay its users back, divulging that “the exchange has to close down, unfortunately. This includes all our social media.” While the first part of the statement is logical, the second comment led many to raise their eyebrows, so to speak, in suspicions that this hack isn’t cut and dried.

Read more at businesscryptonews

Japan’s Financial Services Agency limiting caps on Crypto Margin Trading?

Japan’s regulators are considering stricter limits on margin trading of digital currency as reported by Nikkei. To curb speculative trading and limit user exposure to volatility risks, Japan’s Financial Services Agency is considering leverage caps for margin trading of cryptocurrencies.

The push to regulate came in response to concerns by many users. With a theft with Coincheck early this year FSA received a lot of inquiries, and this move is just to reduce risks and improve user protection.

Read more at Asia.nikkei.

How Crypto Wallets Play a Vital Role in Crypto Margin Trading

Crypto Wallets are the essential part of crypto margin trading. These crypto wallets are provided by the crypto exchanges are used for trading leveraged short and long positions and for providing margin funding/financing to other traders. The funds are instantly transferred from one wallet to another assisting is a smooth trade. So what else does the crypto wallet help with, the Margin Traders? Let’s explore about Crypto Wallets and their place in Crypto Margin Trading

What are Crypto Wallets and How it works?

A cryptocurrency wallet or Crypto wallets is a software program that stores the public and private keys, interacting with different blockchain to allow individuals to send and receive digital currency and view their balance. If you are keen to use any digital currency, one of the prerequisites is to have a crypto wallet or digital wallet.

The working of cryptocurrency wallet cannot be compared to a physical wallet. The crypto wallets do not store currency, unlike the wallet you carry in your pocket. When an individual sends a digital currency to say ETH, he is actually signing off his ownership from that coin and assigning new ownership address of yours. To access these coins and spend it or use it for crypto trading the private key that is assigned to you should match the public key available for ETH. Once the match is made, the account balance would increase and that for the sender would decrease. There is no real exchange of coins, only a transaction record on the Ethereum blockchain and a change in account balance of the sender and receiver.

Crypto Wallets in Crypto Margin Trading

In the market, many types of crypto wallets available are categorized as Software[subtype – Desktop, mobile and online], Hardware, Paper wallets. Each of them differs in a way they are accessed and utilized.

But the most crucial categorization of wallets for margin traders is Hot wallets and Cold storage. This could be applied to any crypto wallet. Both of the strategies are a measure of tightening the security by exchanges to safeguard funds from hackers. Both cold storage and the hot wallet are security measures put in place by exchange platforms to safeguard user funds from any mishap.

Cold storage wallets are wallets that are offline most of the time and can be accessed only when the user wants to make a transaction, putting away the risk of being hacked. Example of a Cold storage wallet would be Hardware wallet that is accessed via USB drive and can be put on offline mode easily. Crypto Margin Traders could use this Cold storage when making a margin trade. It not only helps the funder/lender but even the trader to put his collateral in a secure way.

Hot Wallets, on the other hand, refer to “liquidity in hand” by exchanges in case there is a sudden request of withdrawals. Just imagine a bank in your neighborhood keeping “cash handy” for withdrawals. Example of hot wallets would be an online wallet or desktop wallet. So for Margin trading in case, a margin call is made, and the borrower is not able to fulfil or top-up his wallet, the exchange would release the collateral from the hot wallet to the lender.

While the experts recommend usage of Cold Storage, hot wallets are still to be used whenever the need arises. Would you like to share your crypto wallet story with us? Please post on to our twitter account

References

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