CoinIRA Blog

SEC

Crypto.com Sues the SEC to Protect Crypto’s Future in the U.S.

On October 8, 2024, Crypto.com sued the U.S. Securities and Exchange Commission (SEC) to protect crypto's future in the U.S. accusing it of overstepping its authority over cryptocurrency, marking a significant moment in the ongoing tension between cryptocurrency companies and regulatory authorities. The lawsuit stems from a Wells Notice that Crypto.com received earlier, which is a formal warning indicating that the SEC is considering enforcement action. The notice claims that Crypto.com may have violated U.S. securities laws by engaging in certain transactions that the SEC classifies as securities sales.

The Primary Allegations

"Our lawsuit contends that the SEC has unilaterally expanded its jurisdiction beyond statutory limits and separately that the SEC has established an unlawful rule that trades in nearly all crypto assets are securities transactions," Crypto.com said. Crypto.com’s lawsuit accuses the SEC of overstepping its legal boundaries by applying securities regulations to a wide array of cryptocurrency transactions. Specifically, the company argues that the SEC has unilaterally expanded its jurisdiction to include most digital assets, except for Bitcoin and Ethereum, which the SEC does not consider securities. The lawsuit challenges the SEC’s regulatory approach, accusing the agency of enforcing rules without the proper legislative or procedural process, particularly bypassing the notice-and-comment requirements of the Administrative Procedure Act (APA).  And the commissioner of the SEC is admitting its crypto approach has been wrong. Mark Uyeda, commissioner of the SEC, admitted "I think our policies and our approach over the last several years have been just really a disaster for the whole industry. We have been sending this 'policy through enforcement,' we've done nothing to provide guidance on it," he continued. "And as a result, this has been achieved by the courts. And different courts have ruled different ways."

Crypto.com Petitions the CFTC

In addition to contesting the SEC's overreach, Crypto.com has also filed a petition with the Commodity Futures Trading Commission (CFTC) seeking clarification on the regulatory status of certain cryptocurrency derivatives. The company argues that these products should be regulated by the CFTC and not the SEC, which would reduce the regulatory conflict currently plaguing the industry. The lawsuit mirrors other recent legal actions taken by crypto companies like Ripple, which also pushed back against the SEC’s aggressive stance on crypto regulation. Crypto.com is seeking both declaratory and injunctive relief to prevent the SEC from expanding its authority in what it views as an unlawful manner. The lawsuit represents a broader industry push against what many in the cryptocurrency space view as harmful regulation by enforcement—a tactic that focuses on enforcement actions without first establishing clear rules for the industry.

Conclusion

Crypto.com’s decision to file this lawsuit follows a trend of increased legal scrutiny on the SEC’s approach to regulating cryptocurrencies. The company hopes that the U.S. courts will act as a check on what it describes as the SEC’s arbitrary actions, a sentiment echoed by other stakeholders in the crypto world who have criticized the regulator's approach to stifling innovation and harming investors. As the case progresses, it will have significant implications for the future of cryptocurrency regulation in the U.S., particularly concerning how digital assets are classified and governed. Crypto.com has expressed confidence in its position and vowed to continue operations as usual despite the ongoing legal battle.

Bitcoin and Ethereum: Top Cryptos for IRA Investment

Since Bitcoin’s launch as the first cryptocurrency in 2009, the crypto market has skyrocketed. With over 24,000 active crypto projects today, Bitcoin (BTC) and Ethereum (ETH) remain the titans, holding the majority of market capitalization. Bitcoin is often called “digital gold,” while Ethereum leads altcoins due to its role in smart contracts and decentralized applications (dApps). Let’s break down these two powerhouses to help you decide whether Bitcoin, Ethereum, or both are worth adding to your cryptocurrency portfolio or Crypto IRA. Bitcoin (BTC) - The First Cryptocurrency Bitcoin was created in 2009 by the still-anonymous Satoshi Nakamoto. The whitepaper introduced a peer-to-peer electronic cash system, which was revolutionary at the time. Bitcoin runs on a Proof-of-Work (PoW) consensus mechanism, where miners use computational power to validate transactions and secure the network. Though initially met with skepticism, Bitcoin proved its value as a secure, immutable digital currency. Its transparent blockchain, where each transaction is visible, gave users confidence. This transparency helped establish Bitcoin’s status as a reliable store of digital value. Bitcoin in 2024 Despite its volatility, Bitcoin has shown resilience through multiple market cycles. After each correction, it has established a higher low, reflecting a long-term upward trend. Investors no longer see Bitcoin solely as a speculative asset but also as a store of value, comparable to gold. Adoption of Bitcoin is growing as well. Thousands of businesses and institutions now incorporate BTC into their payment systems and investments, giving it a significant advantage over other cryptocurrencies. Ethereum (ETH) - The Smart Contract Pioneer Launched in 2015 by Vitalik Buterin and his team, Ethereum introduced smart contracts—self-executing pieces of code that automatically enforce the terms of an agreement. Unlike Bitcoin, which focuses on digital transactions, Ethereum supports decentralized applications (dApps) and the creation of new cryptocurrencies. Ethereum’s smart contracts have fueled significant developments, such as decentralized finance (DeFi), non-fungible tokens (NFTs), and various dApps. This framework allows developers to build complex applications without relying on centralized servers or third-party companies. Ethereum in 2024: Transition to Proof-of-Stake Ethereum recently transitioned from PoW to a Proof-of-Stake (PoS) consensus mechanism. This upgrade, known as Ethereum 2.0, made the network more energy-efficient and scalable. Faster and cheaper transactions have resulted from this shift. Alongside its role in dApps, smart contracts, and DeFi, Ethereum has solidified its position as the leading blockchain for decentralized projects. Key Characteristics of Bitcoin (BTC)
  • Digital Cash Transactions: Bitcoin was primarily designed for digital transactions. Its PoW blockchain ensures secure transfers, making hacking nearly impossible.
  • Store of Value: With a fixed supply of 21 million BTC and increasing demand, Bitcoin is widely seen as a dependable store of value, even in volatile markets.
  • Widespread Adoption: Bitcoin is the most accepted digital currency globally, with more businesses and institutions integrating it into their systems.
Key Characteristics of Ethereum (ETH)
  • Smart Contracts: Ethereum introduced smart contracts, which enable DeFi platforms, dApps, and NFTs. These contracts eliminate intermediaries, streamlining transactions.
  • Decentralized Applications (dApps): Ethereum is the top platform for dApp development, supporting a wide range of uses, from crypto exchanges to gaming and NFT marketplaces.
  • Token Creation and NFTs: Ethereum’s ERC-20 token standard allows easy creation of new cryptocurrencies. It also pioneered NFTs, leading the digital collectibles market.
Key Differences Between Bitcoin and Ethereum
  • Consensus Mechanism: Bitcoin still operates on a PoW system, while Ethereum has transitioned to PoS, making it more energy-efficient and scalable.
  • Use Case: Bitcoin functions mainly as a store of value and digital cash, whereas Ethereum serves as a blockchain platform for decentralized development.
  • Transaction Speed: Bitcoin transactions take about 10 minutes to confirm, while Ethereum processes transactions in under 5 minutes.
  • Market Cap and Price: Bitcoin has a larger market cap and higher price per coin, but Ethereum’s increasing use cases in DeFi, NFTs, and dApps are narrowing the gap.
BTC and ETH Price Trends Both Bitcoin and Ethereum experience significant price fluctuations. Bitcoin reached an all-time high of nearly $70,000 in 2021. As of September 2024, it trades around $62,000, with forecasts ranging between $54,000 and $72,000 depending on macroeconomic conditions. Ethereum, after peaking at over $4,800, now trades at $2,400, with predictions ranging from $2,250 to $3,350. These price swings highlight the importance of timing in crypto investments. Despite corrections from their all-time highs, both Bitcoin and Ethereum show long-term potential as they continue to drive adoption in the evolving financial ecosystem. Conclusion: Bitcoin or Ethereum — Or Both? Your investment goals will influence your choice between Bitcoin and Ethereum. Bitcoin’s reliability as a store of value makes it an attractive hedge against inflation. Meanwhile, Ethereum’s versatility supports decentralized apps, NFTs, and DeFi. For many, a balanced approach works best. Holding both BTC and ETH provides exposure to Bitcoin’s stability and Ethereum’s innovation. Whether you favor Bitcoin’s "digital gold" narrative or Ethereum’s decentralized app potential, both offer long-term growth opportunities in the expanding digital economy.

Pay Close Attention: Today’s Interest Rate Cut Could Power Up Crypto Prices

The buzz today is all about the half point interest rate cut, but what does it mean for cryptocurrency? For those of us keeping an eye on Bitcoin, Ethereum, and other digital assets, this could be a pivotal moment. In the world of finance, rate cuts often signal big changes, and crypto investors should be paying close attention to the impact of this interest rate cut on crypto prices.

Why Interest Rate Cuts Matter

When central banks like the Federal Reserve cut interest rates, they make borrowing cheaper and encourage more spending and investment. While this is usually a strategy to stimulate economic growth, it also has a ripple effect on various markets—including crypto. More cash flows into the economy, and riskier assets like cryptocurrencies often become more attractive. So, what’s the connection? Let’s dive into why this rate cut could be a game-changer for digital currencies.

How the Rate Cut Benefits Crypto Investors

1. More Liquidity Means More Investment in Crypto
Lower interest rates lead to increased liquidity—there’s more money in circulation, and investors need somewhere to put it. Traditional savings accounts and bonds may not seem so appealing when the returns are low, which makes cryptocurrencies like Bitcoin and Ethereum look much more promising.
2. Traditional Investments Lose Their Edge
Safe, low-risk investments like bonds or savings accounts don’t perform well in a low-interest environment. Their returns often barely keep up with inflation. Did you know that Bitcoin has outperformed traditional assets in most years, with an average annual return of around 200% over the past decade? This is why, when traditional investments falter, cryptocurrencies start to shine.
3. A Weaker Dollar Could Mean Stronger Crypto
Interest rate cuts often lead to a weaker U.S. dollar. When the dollar loses value, assets priced in dollars, such as Bitcoin, tend to rise. Bitcoin, often referred to as “digital gold,” has become a popular hedge against inflation and currency devaluation. Investors looking for a safe harbor during times of economic uncertainty may find crypto a solid choice.
4. Increased Risk Appetite
In a low-rate environment, investors start seeking out higher-risk, higher-reward assets. The opportunity cost of holding traditional assets diminishes, and cryptocurrencies, known for their volatility and potential for massive gains, become more attractive. With traditional markets offering less excitement, crypto provides the kind of growth potential investors are looking for.

Is Crypto Set for a Bull Run?

The rate cut could ignite the next big crypto rally. As more investors look for alternative ways to generate returns, digital assets are likely to see increased inflows. If the central bank keeps rates low for an extended period, the environment could remain favorable for crypto. However, it’s important to remember that while the rate cut may provide a short-term boost, other factors such as regulatory developments and technological innovations will continue to influence the market.

Long-Term Implications for Crypto Investors

If we enter a prolonged period of low interest rates, the potential for sustained growth in the crypto market increases. More liquidity, a weaker dollar, and diminished returns from traditional investments all contribute to a perfect storm that could push crypto prices higher. On the other hand, if this rate cut is a one-time event, the bump in crypto prices could be short-lived.  In a low-rate world, crypto could be the high-growth asset you’ve been waiting for. Stay sharp, stay informed, and position yourself to make the most of this shifting financial landscape.

Final Thoughts: Seize the Opportunity

Today’s interest rate cut is an important moment for crypto investors. With more liquidity in the system, traditional investments offering lower returns, and a potentially weaker dollar, this could be a prime opportunity for cryptocurrencies to gain momentum. Whether you’re already invested or thinking about getting in, the time to act is now.  Watch for further economic developments, and be prepared to take advantage of what could be a significant moment for digital assets.  Get out of the stands and onto the court -- you can't win if you don't participate.

What will be the Ripple Effect on XRP and Other Cryptos

Ripple vs. SEC: Latest Developments and What They Mean for the Crypto World

In the ever-evolving landscape of cryptocurrency regulation, one legal battle has captured the attention of the entire industry: Ripple Labs Inc. vs. the U.S. Securities and Exchange Commission (SEC). This high-stakes case could significantly impact not only Ripple but also the broader cryptocurrency market. Here’s a rundown of the latest updates and what they mean for investors, developers, and enthusiasts.

A Quick Recap: The Ripple-SEC Saga

The conflict between Ripple Labs and the SEC began in December 2020 when the SEC filed a lawsuit against Ripple, alleging that the company conducted an unregistered securities offering through the sale of its XRP token. According to the SEC, XRP should be classified as a security, and Ripple’s failure to register its sales violated securities laws. Ripple has maintained that XRP is not a security but rather a digital currency. The company argues that the SEC's classification of XRP as a security is inconsistent with how other cryptocurrencies are regulated. The case has since evolved into a major legal battle with implications for the entire crypto industry.

Recent Developments: What’s New?

1. Ongoing Court Proceedings
As of September 2024, the Ripple-SEC case is still in active litigation. Recent court proceedings have focused on various key aspects, including whether Ripple executives had fair notice that XRP might be considered a security. The court has been reviewing documents and testimonies to determine whether Ripple’s actions were in line with existing securities laws. In recent months, Ripple has made strides in its defense. The company has argued that XRP’s classification as a security would set a dangerous precedent and stifle innovation in the cryptocurrency space. Ripple has also challenged the SEC’s use of expert witnesses, arguing that some of the evidence presented is not relevant to the core issues of the case.
2. Summary Judgment Motions
In July 2024, both parties filed for summary judgment, requesting the court to rule in their favor without going to a full trial. Ripple’s motion argued that the SEC had failed to prove that XRP is a security and that the agency had not provided sufficient clarity on its regulatory stance. The SEC, on the other hand, argued that Ripple’s sales of XRP constituted an illegal securities offering. The summary judgment motions are a critical juncture in the case, as a favorable ruling for Ripple could lead to a significant shift in regulatory attitudes towards cryptocurrencies. Conversely, a ruling in favor of the SEC could have far-reaching implications for how digital assets are classified and regulated.
3. Impact on XRP and Ripple’s Business
Despite the ongoing legal battle, Ripple has continued to expand its business and secure partnerships. The company has announced several new collaborations aimed at leveraging blockchain technology for cross-border payments and financial services. Ripple’s focus on real-world use cases and partnerships has helped maintain confidence in its long-term prospects, even amidst the legal uncertainty. XRP, the token at the center of the dispute, has experienced significant price fluctuations in response to legal updates. While the token’s value saw a sharp decline following the initial lawsuit, it has shown resilience as Ripple continues to fight the case. The outcome of the litigation will likely have a profound impact on XRP’s future performance and adoption.

What This Means for the Crypto Industry

The Ripple-SEC case is more than just a legal dispute between two entities; it’s a landmark case that could shape the regulatory landscape for cryptocurrencies. Here’s how the outcome could impact the broader crypto industry:
1. Regulatory Clarity
One of the most anticipated outcomes of the case is greater regulatory clarity. If Ripple prevails, it could set a precedent that challenges the SEC’s current approach to classifying and regulating cryptocurrencies. This could lead to more defined guidelines for how digital assets are treated under U.S. securities laws, providing much-needed certainty for businesses and investors in the crypto space.
2. Innovation and Investment
A ruling in favor of Ripple could encourage innovation and investment in the cryptocurrency sector. With clearer regulatory guidelines, companies might feel more confident in developing and deploying blockchain technologies. Conversely, a ruling favoring the SEC could lead to stricter regulations, potentially slowing down innovation and investment in the industry.
3. Precedent for Other Cryptocurrencies
The case will likely set a precedent for how other cryptocurrencies are treated by regulators. If XRP is classified as a security, it could lead to increased scrutiny of other tokens and their issuers. On the other hand, a ruling in Ripple’s favor might influence how regulatory agencies approach the classification and regulation of digital assets in the future.

Looking Ahead: What to Watch For

As the Ripple-SEC case continues, there are several key developments to watch:
  • Court Rulings and Appeals: Keep an eye on court rulings and any potential appeals. The decisions made in this case could have long-term effects on the regulatory environment for cryptocurrencies.
  • Regulatory Responses: Watch for responses from regulatory bodies following the case’s outcome. Their stance on cryptocurrency regulation will be crucial for shaping the future of the industry.
  • Market Reactions: Observe how the market reacts to legal updates. XRP’s price movements and investor sentiment will provide insights into the broader impact of the case on the crypto industry.

Final Thoughts

The Ripple-SEC case is a pivotal moment for the cryptocurrency industry. The ongoing legal battle will not only determine Ripple’s fate but also shape the regulatory landscape for digital assets. As developments unfold, staying informed and understanding the broader implications will be key for investors and industry participants alike. Editor's Note:  XRP is available for investment in a Coin IRA Digital Asset IRA or Individual Trading account.  Start today in as little as 5 minutes!
Fractional Metals available at Coin IRA

The 9 Advantages of Buying Fractional Metals in Your Digital Asset Account

Coin IRA's Flex Metals Program

Coin IRA account holders can now trade whole or fractional amounts of pure gold, silver and platinum in their Cryptocurrency IRAs and Individual Trading account, the same way they currently trade whole or fractional amounts of cryptocurrency. So whether you have a Tax-Advantaged Traditional, Roth, or SEP IRA, or an Individual Non-IRA Trading Account, you can easily own precious metals alongside your cryptocurrencies in the same digital asset account in the most efficient, low cost option, with no cost to setup the account, maintain the account, or store the assets. (Unlike a Precious Metals IRA, with setup, maintenance and storage costs, not to mention the huge spreads you'll pay on the coins you purchase and the time it takes to receive and liquidate your coins in the future.) You might be asking why you’d want to own fractional metals in your Digital Asset IRA.  Well, we can think of 9 great reasons:
  1.  Affordability: Buying fractional metals allows individuals to invest in precious metals at a lower cost than purchasing a full bar or coin, without having to open a separate Precious Metals IRA, saving the fees and costs involved.
  1. Diversification: Fractional metals can be used to diversify a portfolio, reducing overall risk by spreading investments across different assets.
  1. Instant Liquidity: When selling fractional metals purchased inside your digital trading account, credit to your available trading balance is immediate.  There’s no waiting, so you can use your proceeds immediately for another trade or request a distribution.
  1. Convenience:  Fractional metals purchased in your account are 100% allocated to your account and are stored at Brinks, Salt Lake City, for easy management and convenience. There's no waiting for delivery or for your proceeds when you liquidate.
  1. Flexibility:  You don’t have to purchase in whole ounces or the sizes and weights of available minted coins. You are buying fractional ownership of large bullion bars, the most inexpensive bullion product, and you can buy as little as $10 worth of gold, silver, or platinum.
  1. Hedge against Inflation: Precious metals have historically held their value during times of economic uncertainty and inflation, providing a hedge against potential financial losses.
  1. Tangible Asset:  Fractional metals are tangible assets that are physically stored on your behalf in the most secure domestic vaults, offering a level of security in uncertain times, and complementing your virtual assets.
  1. Tax Benefits: You can trade in and out of precious metals without creating a taxable event until you take a withdrawal or distribution; and even better, metals owned in a Roth IRA grow tax-free, even at the point of withdrawal.
  1. Delivery Options: When you are ready to take a withdrawal from your account, there is an option to convert your whole ounce ownership of fractional metals to a minted product such as a 1oz American Eagle for physical delivery at a low cost. This way, you aren't paying the extra cost of a minted product unless you eventually want one.
Account holders are telling us we've made trading metals fast and simple! For any additional questions you might have, call Coin IRA Customer Support at 866-924-5421 or email customersupport@coinira.com.
Ethereum cryptocurrency

Why Should I Invest in Ethereum?

Cryptocurrency IRAs  are gaining popularity as the adoption of top cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) continues to rise. While BTC has long been the primary choice for crypto IRAs, Ethereum is an increasingly attractive option due to its versatility and wide range of applications. Unlike Bitcoin, which functions primarily as digital cash, Ethereum offers a multi-purpose platform that supports a vast ecosystem of decentralized applications (dApps), decentralized finance (DeFi) platforms, and crypto tokens. As a result, Ethereum is a viable and strategic addition to Cryptocurrency IRAs.

Understanding Ethereum

Ethereum, launched in 2015 by Vitalik Buterin and a team of developers, is a pioneering blockchain that extends beyond the basic transaction functionalities of Bitcoin and other early cryptocurrencies. The Ethereum network enables developers to create and deploy a variety of decentralized applications, including DeFi protocols, non-fungible tokens (NFTs), and more. The native token, Ether (ETH), powers all transactions on the Ethereum blockchain. Ethereum quickly gained prominence because it offered real-world utility beyond simple peer-to-peer transactions. The platform provided developers with free, open-source tools to create innovative solutions, making it one of the most significant blockchain ecosystems.

Key Features of the Ethereum Blockchain

  1. Smart Contracts: A cornerstone of Ethereum’s functionality is the smart contract—self-executing code that automatically enforces the terms of an agreement without the need for intermediaries. This feature revolutionized how contracts are managed in the digital world, allowing for secure, automated transactions.
  2. Decentralized Applications (dApps): Ethereum is the leading platform for developing dApps, which operate independently of centralized entities like major tech companies. These applications are built using Solidity, Ethereum’s programming language, and the Ethereum Virtual Machine (EVM), making them highly customizable and versatile.
  3. Ethereum Tokens: Ethereum introduced the ERC-20 token standard, which allows developers to create their own cryptocurrencies without building a new blockchain. This innovation paved the way for thousands of tokens and projects within the Ethereum ecosystem. Additionally, the ERC-721 standard facilitated the creation of NFTs, leading to the rapid growth of digital art and collectibles markets.

Ethereum's Supply and Performance

Ethereum successfully transitioned from a Proof of Work (PoW) to a Proof of Stake (PoS) consensus mechanism with the completion of "The Merge" in September 2022. This significant upgrade, part of Ethereum 2.0, enhances the network’s scalability, security, and sustainability by reducing energy consumption by over 99% and enabling more efficient transaction processing.
As of 2024, the circulating supply of ETH is approximately 120 million coins with no fixed cap on its total supply, unlike Bitcoin’s 21 million coin limit. Ethereum continues to play a dominant role in the smart contract and decentralized application (dApp) market, maintaining a significant share of the overall cryptocurrency market cap, even as competition from other blockchains like Solana (SOL) and Avalanche (AVAX) intensifies. Ethereum's continued innovation and broad adoption keep it at the forefront of the crypto industry.

Why Consider Ethereum for Your IRA?

With its robust ecosystem, proven track record, and ongoing innovations, Ethereum presents a compelling case for inclusion in a Cryptocurrency IRA. Whether you’re interested in diversifying your retirement portfolio or capitalizing on the potential of decentralized technologies, Ethereum offers opportunities for growth and value preservation. If you’re considering adding Ethereum to your IRA, Coin IRA Customer Support is here to guide you through the process. Contact us at 888-998-COIN to learn more.
Gold Bitcoin

The Bitcoin Halving: What to Expect

The anticipation is palpable in the most eagerly awaited event in the world of cryptocurrencies, the Bitcoin halving.  Investors have burning questions like, "How will this affect Bitcoin's price?" and "What does it mean for us, the investors and holders of Bitcoin?"  We are here to explore the intricacies of this phenomenon to provide you with insights into what lies ahead. Understanding the Bitcoin Halving Before we delve into the implications of the halving, let's demystify this process. Bitcoin halving refers to the reduction in mining rewards that Bitcoin miners receive for processing transactions. Once every 210,000 blocks are mined, which occurs approximately every 4 years, the miners' rewards are cut in half, reducing the number of Bitcoins entering circulation. The Significance of the Bitcoin Halving for Investors As far as the impact of the halving on the crypto space and, more importantly, on investors, let’s explore further. As we’ve stated, the Bitcoin halving reduces the speed at which the number of new Bitcoins enter circulation, and it plays a crucial role in avoiding inflation and maintaining stability in the cryptocurrency market. Moreover, the halving brings us closer to Bitcoin's predetermined cap of 21 million coins, a vision set forth by its mysterious inventor, Satoshi Nakamoto. This inherent scarcity contributes to Bitcoin's value and makes it an attractive investment, particularly for those seeking to hedge against traditional fiat currencies. Unearthing the Timing of Bitcoin Halvings Bitcoin, the brainchild of Satoshi Nakamoto, emerged in 2008 and began its real-world application in January, 2009. The first halving took place on November 28, 2012, followed by the second on July 9, 2016, and the third on May 11, 2020. Though Bitcoin halvings are expected to take place every 4 years, there are no precise dates for these events. The next halving is projected to be completed on approximately April 20, 2024. Excitement brews as we draw closer to this momentous occasion! How Does the Bitcoin Halving Affect Price? In 2012, the price of Bitcoin on the halving day was $12.35, and 150 days later, the price had gone up to $127.  In 2016, Bitcoin's price on the halving day was $650.63, and 150 days later, the price was $758.81. In 2020, Bitcoin's price was $8,821.42 on the Bitcoin halving date, and 150 days from the BTC halving date, the price had gone up to $10,943.00. What is evident from the BTC price movements during Bitcoin's previous halvings, therefore, is that the price of this particular cryptocurrency tends to increase each time this momentous event happens.  Still, it is important to keep in mind that there is no certainty in the crypto space. The overall effect of the upcoming Bitcoin halving event will depend on a lot of factors - market confidence, liquidity, etc. One thing's for sure, investors and crypto analysts will be keeping their eyes open for positive signals in the next Bitcoin halving event. The Potential Impact on Bitcoin's Price Drawing from historical halvings, we can speculate that Bitcoin's price may increase after the 2024 halving. With a decrease in the supply of new Bitcoins, demand tends to surge, pushing prices upwards. A brief review of Bitcoin's price trajectory reinforces this possibility. From its humble beginnings, when 10,000 BTC exchanged hands as payment for two pizzas, to reaching an all-time high of $68,000 in 2021, Bitcoin's value has undergone tremendous growth. While the Covid pandemic of 2020 led to a temporary price dip, Bitcoin's resilience was evident as it swiftly bounced back. The intriguing nature of the halving lies in its potential to attract new investors and traders. The excitement surrounding the event contributes to new interest in Bitcoin and an awareness of Bitcoin's scarcity, fostering an environment of heightened demand. That being said, it is important to acknowledge that the crypto market is characterized by unpredictability. While the halving's impact on Bitcoin's price is generally positive, it is subject to a myriad of variables, including market confidence and liquidity. The Benefits of the Halving for Investors Halvings offer several advantages for investors and Bitcoin enthusiasts alike. The most significant benefit lies in the resulting scarcity of Bitcoin, which often leads to price appreciation. Past halvings have demonstrated this trend, although it's important to remember that past performance is not indicative of future results. Furthermore, the excitement generated by the halving event tends to spur increased trading volumes. This higher liquidity enhances the security and usability of the Bitcoin market, attracting more participants and reinforcing its credibility. As the Bitcoin network continues to adhere to its halving schedule, confidence in its reliability grows. Investors seeking secure and potentially lucrative assets are drawn to Bitcoin, further increasing its demand and potential for price growth. Looking to the Future of Bitcoin The fourth Bitcoin halving is expected to occur in April, 2024, with the completion date dependent on how quickly Bitcoin miners reach the 210,000-block milestone. Considering Satoshi Nakamoto's vision of preserving Bitcoin's value and its potential to revolutionize the global financial landscape, the future holds immense promise. As a holder or investor in Bitcoin, each halving event sets the stage for a brighter future. The choice is yours – will you seize the opportunity to be a part of this remarkable journey before the next halving? Conclusion As the next Bitcoin halving nears and excitement fills the crypto sphere, Bitcoin's value proposition becomes more pronounced, attracting investors seeking stability and potential growth. The potential impact on Bitcoin's price remains a subject of anticipation and speculation. However, it is essential to approach the crypto market with caution, understanding that it is subject to various external factors. The history of Bitcoin halvings demonstrates positive trends, but the future is always uncertain. Remember, the beauty of cryptocurrencies lies in their ability to empower individuals and reshape financial paradigms. Whether you're a seasoned investor or a curious newcomer, the opportunity to participate in the Bitcoin revolution awaits. So, should you choose to embark on this thrilling journey with us, and should you require guidance or assistance, don't hesitate to reach out to our dedicated Customer Support team at Coin IRA. Together, let's navigate the ever-evolving world of cryptocurrencies and witness the transformative potential of the next Bitcoin halving event!
Bitcoin Cash

What is Bitcoin Cash?

Many of our account holders ask about Bitcoin Cash (BCH), the affordable alternative to Bitcoin, so let’s dive in. To begin with, Bitcoin Cash (BCH) is quite a controversial player in the crypto arena. In August of 2017, this coin burst onto the scene due to a hard fork from the original Bitcoin blockchain.  A hard fork refers to an event where a new blockchain is created from an already existing one. This gives birth to a new blockchain, thus resulting in two different versions of the same cryptocurrency. One of those chains has a longer history, and the other is new with a much shorter history. This is how Bitcoin Cash was created. But it wasn’t easy for Bitcoin enthusiasts to accept the new crypto created from the hard fork.  It was met with plenty of drama and controversy. The split was partly driven by a desire to address some of the scalability issues of Bitcoin, such as slow transaction processing times and high fees. But others viewed it as a controversial upstart, with detractors claiming that it is a centralized version of Bitcoin that undermines the very principles of decentralization which cryptocurrencies were founded upon.  But regardless of where you stand on the issue, its creation has sparked debates about the role of hard forks in the crypto space.  For all you investors, let’s dig a little deeper into the potential of Bitcoin Cash.

Bitcoin and Bitcoin Cash: The Similarities

Bitcoin Cash works similarly to Bitcoin, as it is based on the same blockchain technology.  At its core, the blockchain operates as a decentralized database of transactional records on a network. Therefore, as long as everyone on the network agrees to abide by the blockchain's database, the transactions on the network can be verified and confirmed by any node or computer connected to that network. This eliminates the need for banks and intermediaries that often do the work of validating transactions. Like Bitcoin, Bitcoin Cash transactions are processed by miners, who use their computing power to validate transactions and add them to the blockchain. You can think of miners as nothing more than computers connected to the Bitcoin Cash network with the responsibility of validating and confirming transactions. Each miner on the network gets randomly picked to validate a block of transactions, and once the transactions are confirmed and validated, that miner receives rewards in the form of BCH coins. Apart from technical aspects such as block size which we’ll discuss in a moment, Bitcoin Cash still retains most of the characteristics of its parent blockchain. You can think of BCH as the cheaper version of Bitcoin. Like Bitcoin, it has a total supply of 21 million coins, but Bitcoin is the more widely adopted cryptocurrency and has a larger user base compared to Bitcoin Cash.  However, BCH also has a large and dedicated following and is traded on most crypto exchanges alongside Bitcoin.

Bitcoin and Bitcoin Cash: The Differences

In terms of popularity, Bitcoin (referred to as both XBT and BTC) is currently the most well-known and widely used cryptocurrency, with a market capitalization of $545 billion as of this writing, as compared to around $2.46 billion USD for Bitcoin Cash (BCH).  That’s a pretty significant difference. Moreover, many more businesses and merchants accept Bitcoin as a form of payment compared to BCH.  When it comes to Bitcoin Cash and Bitcoin, there's one key difference that sets them apart - the block size.  Bitcoin Cash boasts an impressive block size of 32MB, which allows for lightning-fast transaction processing times and lower fees. This is a stark contrast to Bitcoin's smaller block size of 1.39MB, which can lead to slower transaction times and higher fees. You might be wondering - why does block size matter? Well, a larger block size enables more transactions to be processed at once, which can help to reduce congestion in the network and keep fees low. This is especially important as cryptocurrencies become more widely adopted and the demand for faster, cheaper transactions increases.

Why Would Anyone Want to Invest in Bitcoin Cash?

Bitcoin Cash offers several benefits that may appeal to different types of crypto investors and traders, but its future is difficult to predict.  It depends on various factors such as adoption, technological advancements, regulatory developments and market trends. A key factor that could impact the future of Bitcoin Cash is adoption, one of the key drivers of the success of any cryptocurrency.  BCH’s larger block size allows for faster transaction processing times and lower fees, and this makes BCH a useful option for merchants and online shoppers who need to make quick and low-cost transactions. Bitcoin Cash is also decentralized and borderless, thus making it ideal for sending and receiving money from anywhere in the world without intermediaries.  There are ongoing debates in the cryptocurrency community about the scalability of BCH and its long-term viability.  However, if Bitcoin Cash developers can continue to improve its scalability, security, and user experience, it could potentially increase its adoption and value.   Keep in mind, though, that there are many other cryptocurrencies that aim to be a fast and low-cost payment system.  If one or more of them become more popular, it could limit the potential of Bitcoin Cash.  And of course, there is always the unknown “government regulation” to consider when investing for the long-term. If the government adopts favorable regulations for cryptocurrencies, it could potentially increase their adoption and value, and conversely, if regulations are strict, it could limit growth and adoption. If governments adopt favorable regulations for cryptocurrencies, it could potentially increase their adoption and value. Conversely, if governments adopt strict regulations, it could limit their growth and adoption.

Conclusion

So, there you have it. On the plus side, Bitcoin Cash’s use case is a good one. Its larger block size allows for faster transaction processing times and lower fees compared to Bitcoin, but adoption is unpredictable for the long term.  And it was created as a fork of Bitcoin; therefore, it boasts all the features that make Bitcoin secure and reliable. What’s more, at its current price, it is one of the more affordable coins in the crypto space.  However, while it has a dedicated following and offers some advantages over Bitcoin, it faces stiff competition and possible regulatory challenges.   These are all important factors to consider when weighing the risks of investing in Bitcoin v. Bitcoin Cash, but whether you choose one or both, Coin IRA is here to make the process of establishing and funding your free account as simple and efficient as possible.
Crypto Scams

Scam Prevention Tips

Let’s be honest, scammers are constantly looking for ways to steal your money and cryptocurrency. With the recent rise in cryptocurrency investing, opportunities for online fraud and theft have increased as well. Surveys show that crypto scammers stole a total of $14 billion in 2021, almost doubling the amount stolen from the year before. Experts predict these statistics will only worsen moving forward unless users take active steps to protect their information and accounts online. Coin IRA is fully committed to safeguarding the security and privacy not only of our account holders but of cryptocurrency investors everywhere. We believe raising awareness of the common scams is the best defense against fraudsters and hackers. The following information outlines some of the top scams to watch out for and tips to avoid falling victim to these scams.

Fabricated Websites and Apps of Legitimate Companies

Fraudsters have been known to duplicate legitimate websites or applications to trick innocent investors into using their platforms. Fortunately, there are some simple signs that can help point out a fake website or app. For instance, fake cryptocurrency trading websites and downloadable apps might use a URL that closely resembles the legitimate one. This makes it easier for innocent users to mistake the fake website or app for the real one. Keep an eye out for inconsistencies such as misspellings in the website’s domain name and for spelling or grammatical errors on the site. Taking a minute to verify the URL for accuracy could prevent you from becoming the victim of a scam. And finally, when in doubt, use the domain lookup tool, https://whois.domaintools.com/. Always pay attention to the address bar, and be extra cautious about entering your personal information into a site beginning with http instead of https.  The “s” indicates that the website uses a security protocol that protects your data while it is in transit between your computer and the website you are visiting.  And make sure the contact information on any site asking you to send money or cryptocurrency is reliable. Be especially suspicious of apps that are not downloaded from the Apple or Google Play stores but instead are downloadable links sent to you via social media apps such as LinkedIn and Facebook.  Scammers may target you using something you have in common as an icebreaker, and eventually befriend you, building your trust and then drawing you in with promises of huge returns.  If it sounds too good to be true, be wary of engaging with that person and do not download the app. There are entire websites devoted to identifying fraud, such as  https://fraudwatch.com/blog/, which contain invaluable free information on protecting yourself.  It is well worth your time to put their recommendations into practice.

Phishing Scams

Phishing scams are often used to trick you into giving up vital personal and financial details, such as your Social Security number, account number, or login details. Scammers who are phishing will send you fabricated emails or text messages containing deceitful messages or updates. For instance, they may send you an email informing you about an issue with your account and ask you to click on a link to enter and reconfirm your login details. Clicking on the link will send you to a fake website where the scammer can then proceed to steal your information without you even knowing. There’s another variation of phishing called smishing that you need to watch out for. Smishing scams or SMS phishing are conducted through text messages and contain the same dishonest intent as phishing scams. To spot a phishing or smishing scam, you should watch out for the following warning signs:
  • Text or email contains misspellings.
  • Text or email has grammatical errors.
  • Text or email makes unrealistic promises of substantial returns on your investment.
  • Text or email creates a false sense of urgency in the user.
  • Text or email requires you to disclose sensitive information, such as birth dates, passwords, and user IDs.
  • Text or email threatens you with negative consequences.
  • Text or email is demanding or nagging.
If you receive a suspicious text message or email, here are some precautions to consider:
  • Confirm that the message is trustworthy by running it through a URL scanner such as Norton Safe Web or Google Transparency Report
  • Avoid immediately responding to the suspicious text message or email.
  • Don’t click on any attachment links or documents.
  • Avoid disclosing sensitive information in emails, like your Social Security Number, login credentials, and banking information.
  • Avoid calling any numbers contained in a suspected phish.
  • Examine the sender’s email address for subtle differences in the spelling (i.e., @cionira.com vs. @coinira.com).

Upgrade Scams

Most people have grown accustomed to applications and software that need constant updates to fix vulnerabilities and flaws. As cryptocurrency platforms are also a type of software, people easily get tricked into thinking that they also need updates. Scammers can plant deceitful upgrade notifications in your email and social media inboxes. During this “upgrade,” they trick you into giving up your private keys and other account information.  Before falling victim to this type of scam, call the company who you believe sent it to verify it was real.

Social Media and Romance Scams

Scammers attack vulnerable victims anytime and anywhere they find opportunity, even on dating apps like Tinder and Bumble. Scams conducted on these platforms are often referred to as “romance scams.”  Often these scams are strictly online and long-distance. The scammer tries to win over the trust and affection of the victim. They’ll have a very convincing story or too-good-to-be-true opportunity enticing the victim to send money or cryptocurrency and disappearing when it’s time for you to withdraw your funds. Some even just pose as a person with whom you might bond over a common interest, background, or ethnicity. Some may have a money laundering scheme using cryptocurrency they’ll pull you into. Listen to your intuition. If it sounds too good to be true, you’ve never met the person, can’t verify they don’t live in the U.S., and you can’t verify what they’re telling you through a reliable source, proceed with extreme caution or not at all. Fortunately, users aren’t completely defenseless against cryptocurrency scams.

How to Avoid Becoming the Victim of Fraud

Use Multi-Factor Authentication in Your Accounts

Multi-factor authentication (MFA) is a verification method that asks a user to provide two or more verification factors to access a particular resource like an application, trading platform, online account, or VPN. Using MFA decreases the likelihood of scammers accessing your account.  (All Coin IRA accountholders are required to use multi-factor authentication.)

Regularly Change Passwords

Most people use a single password or slight variation thereof for every account they have. This makes it easy for scammers and cybercriminals to guess your passwords. Cybersecurity experts from McAfee recommend changing your passwords once every three months. If you find that your account has been hacked or is part of a data breach, change your password immediately.

Don’t Respond to Requests Asking You to Send Cryptocurrency

If you receive an email, a phone call, or a text with a link to download an app to your phone or computer that requires you to send Bitcoin or any other crypto to fund your account, don’t respond, and definitely do not send any cryptocurrency or money. Before sending money or crypto to anyone online, confirm that you know the person you’re sending it to. If you send cryptocurrency to the wrong wallet or to a scammer’s wallet, there’s no way for you to retrieve your crypto unless the other person sends it back to you. Double-check the recipient’s information before you hit send. For your information, all Coin IRA accounts must be funded with US dollars, not cryptocurrency, and we have two secure websites you can trust. Our main site is https://coinirastaging.com and https://secure.coinira.com.  If you receive a link to a site similar to one of these but not exactly the same, report it immediately to our customer support team at customersupport@coinira.com.

Don’t Share Your Trading Platform Details

If you call Coin IRA regarding information about your account, we will text a six-digit verification code to your cell phone to verify your identity. You never have to provide us with any other information – not your email address, password, phone number or account number. If someone purporting to be an employee of Coin IRA calls you asking for any of your login details, don’t respond.  Report the call to our Customer Support Team via customersupport@coinira.com. The easiest way to record suspicious calls or fraudulent text messages, emails, or websites that appear to be from Coin IRA is to take a screenshot and email it to Coin IRA Customer Support.

Report Cryptocurrency Scams

If you’ve been a victim of a cryptocurrency scam, you can report the incident to the following authorities: Coin IRA strives to protect all our users from malicious online scams and theft. If you believe you may have responded to a fraudulent text or email and disclosed personal or account-related information, change your trading account details immediately. After you’ve changed your account details, contact us immediately at 888-998-COIN or 866-924-5421.

What are Stablecoins?

One of our goals at Coin IRA is to provide continuing education for customers regarding all the advantages a Cryptocurrency IRA can offer, and one of those is stablecoins.

Why would I want to own Stablecoins?

Stablecoins can play an important role in your crypto portfolio, because their value will remain relatively stable compared to other cryptocurrencies.  Stablecoins are digital assets that are pegged to a fiat currency or other asset. There are several different types of stablecoins, but the most common ones are pegged to a fiat currency like the US dollar. This means that each stablecoin is worth one US dollar. Other types are pegged to assets like gold or oil. The main advantage of stablecoins is that they can be used to store value in a way that is less volatile than traditional cryptocurrencies like Bitcoin. For example, if you’re holding Bitcoin and the price of Bitcoin falls by 10%, then your investment is also worth 10% less. However, if you’re holding a stablecoin pegged to the US dollar, then the value of your investment will remain the same even if the price of Bitcoin falls. There are several different projects working on stablecoins, but the most popular one is Tether. Tether is a cryptocurrency that’s pegged to the US dollar. Each Tether is worth one US dollar, and the value of Tether doesn’t fluctuate very much. Tether is currently the most popular stablecoin, but there are several others that offer similar benefits. Some of the other popular and most trusted stablecoins include USD Coin, Binance USD, and Paxos Standard. If you’re looking for a way to store value in a cryptocurrency that is less volatile than Bitcoin, then stablecoins are a good option.

How do Stablecoins Work?

The key to stablecoins is stability. To achieve this stability, stablecoins use a variety of mechanisms. Some use collateralized debt obligations, while others use a basket of currencies or even real assets. It’s important to note that how a stablecoin is backed can affect its level of risk. For example, a stablecoin backed by a single asset, such as the US dollar, is less risky than a stablecoin backed by a basket of assets. When it comes to stability, there are primary main kinds of stablecoins. One is centralized, and the other is decentralized. A centralized stablecoin is that which is backed by a single entity, such as a government or a company. A decentralized stablecoin, on the other hand, is backed by a network of computers, which makes it more resistant to price fluctuations.

What are Stablecoins Used For?

Stablecoins are often used as a way to store value or as a hedge against volatility. For example, if you’re worried about the price of Bitcoin crashing, you could convert your Bitcoin into a stablecoin. This would allow you to hold onto your money without having to worry about the price fluctuating. Stablecoins can also be used to make purchases. For instance, if you wanted to buy a cup of coffee with Bitcoin, but the price of Bitcoin was fluctuating too much, you could convert your Bitcoin into a stablecoin, make the purchase, and then convert the stablecoin back into Bitcoin. This stability makes stablecoins an attractive option for businesses and individuals who want to avoid the volatility of the cryptocurrency markets.

What are Their Purpose and Function?

The purpose of a stablecoin is to provide a digital currency that is stable in price. As noted, this stability is achieved by pegging the stablecoin’s value to another asset, such as the US dollar or gold. The function of a stablecoin is to act as a digital currency that can be used to purchase goods and services or to store value. Because they are pegged to an asset, stablecoins typically do not fluctuate in price as much as other cryptocurrencies.

Examples of Stablecoins

The stablecoin market has exploded in recent years, with dozens of different projects launching their own version of a digital currency pegged to the US dollar or other assets. Some of the most popular offerings include: Tether: Tether is perhaps the best-known stablecoin. It’s pegged to the US dollar. USD Coin: USDC is a US dollar-backed stablecoin issued by Circle and Coinbase. Gemini Dollar: The Gemini dollar is another US dollar-backed stablecoin and is issued by the Winklevoss twins. Paxos Standard: Paxos Standard is also pegged to the US dollar and is one of the newer offerings on the market. TrueUSD: TrueUSD is another popular stablecoin backed by the US dollar. It’s also one of the most liquid stablecoins, with a large number of exchanges listing it. Binance USD: Binance USD is a stablecoin pegged to the US dollar that is issued by the well-known cryptocurrency exchange Binance. Origin Dollar: Origin Dollar is a newer stablecoin that has a basket of assets as its backing, including the US dollar, gold, and Ethereum. As you can see, there are many different stablecoins on the market that are pegged to different assets. Some are even backed by multiple assets, which can help to further stabilize the price.

Why Add a Stablecoin to Your Crypto Investment Portfolio?

If you’re like most people, when you think of investing in cryptocurrency, you probably think of Bitcoin. But there are actually many different types of cryptocurrencies, and each offers its own set of benefits and risks. With stablecoins, many of the risks that come with investing in cryptocurrency are greatly reduced. As a result, stablecoins are becoming an increasingly popular investment option for those looking to get involved in the cryptocurrency market.  We’re pleased to announce that we’ve added USD Coin to our current offering of 20 different coins for your IRA, which may add greater stability for your investment. If you’re interested in adding cryptocurrency to your investment portfolio, we invite you to contact Coin IRA today at 88-998-COIN to learn more about how we can help you invest in this exciting new asset class in your Crypto IRA or individual trading account.