Tag Archives: DeFi

Up 70% in 32 days

Yesterday I gave you a heads up about the new crypto we’re adding to the Crypto With Kash portfolio (side note: one of our picks is up 70% in the last 32 days, turning every £1,000 invested into £1,700).

I’ve just sent out my full write up of this latest pick to members of the service, but I wanted to give you a quick breakdown of why I’m so keen on it here too, so you can decide if you’d like to get involved.

To show you the potential of this coin we first need to talk about a different crypto called UniSwap (to be clear, this is not the coin we’ve just added to the portfolio).

UniSwap entered the Decentralised Finance (DeFi) crypto scene back in September last year.

Like I talked about in yesterday’s email, it’s a Decentralised Exchange (DEX) crypto… you can think of it like a crypto version of Betfair, where people trade crypto with each other and, instead of a middleman, the technology itself takes care of everything.

This proved a huge hit with the crypto community…

And since September, UniSwap has gone from $2 to $29…

That’s the opportunity to turn every £100 invested into £1,450… and every £1,000 into £14,500.

Now, the coin I’ve just added to the Crypto With Kash portfolio is similar to UniSwap in two ways…

  1. It performs a similar function as a Decentralised Exchange (DEX)
  2. It’s sitting at a similar price to UniSwap before it took off

But, most importantly, it has a killer third angle that most people are overlooking, which I believe could potentially make it even more valuable than UniSwap…

You see, at face value the growth rate of UniSwap is much higher than this coin, but if you do a bit of digging (and I have) you’ll discover that my latest pick has an ace up its sleeve…

It’s running a “plug in” technology that allows trades and liquidity from other crypto platforms to flow through its exchange… inflows that aren’t taken into account in the usual measurements of volume and growth.

And when you take this “hidden” growth into account, my latest pick is growing at a rate that’s as much as 12X faster than UniSwap… and yet the price is still hovering in the low dollars.

I believe it’s only a matter of time before that changes.

When the mainstream catches wind of this, I wouldn’t be surprised to see this crypto take a similar trajectory to UniSwap in the coming weeks and months… and over the long term maybe even surpass it.

That’s why I’m recommending members of my service stock up on this crypto while it’s at what I believe is a bargain price.

If you’d like to know the name of this coin and read my full write up on it, you can join us on the inside of the Crypto With Kash service here.

You’ll receive my welcome email containing instructions on how to download the latest newsletter, plus write ups on the other coins in our portfolio, my two crypto guides, and also an invitation to join the private Telegram group.

See you on the inside!

“Betfair cryptos” are going nuts

When Betfair launched in 2000, some people thought it would be the end of conventional bookmakers.

While that hasn’t happened, with the largest volume of bets still taking place with traditional bookmakers, like Bet365, behind the scenes it’s had a huge impact…

As my colleague professional football bettor Adam Cheng says, “Betfair forces bookmakers to match its exchange prices, otherwise they’re open to arbitrage”.

So, in a way Betfair has won out against traditional bookies. And this is reflected in the price investors were willing to pay, valuing the company at $1.5 billion after its first 6 years.

Needless to say, the people with their fingers in this pie at the early stages made a killing!

And now the same thing is happening in the world of cryptocurrencies, where traditional exchanges are being challenged by a new crypto-specific breed of exchange…

Two types of crypto exchanges

There are two types of crypto exchanges…

1: Centralised Exchanges

The first are centralised exchanges like Coinbase, Binance, and Kraken.

These exchanges operate like the “traditional bookmakers” of the crypto world. And they’re not much different to stock and options trading exchanges like RobinHood, IG, and eToro.

This has many benefits and some serious downsides (which makes them ripe for innovation, and is why the second type of exchange is flourishing).

Here’s a breakdown of the pros and cons of centralised exchanges…

Pros:

✅ Easy to deposit traditional currencies and exchange for cryptos

✅ Customer support as with any other company (although Coinbase gets a lot complaints on this front)

✅ Curated list of cryptos, so there’s a decent “standard” to ones you can buy

Cons:

❌ You’re trusting a private company with your traditional currency and cryptos (and they don’t fall under the Financial Services Compensation Scheme (FSCS))

❌ Vulnerable to hacks (in 2014 centralised exchange Mt. Gox lost 850,000 of its customers’ Bitcoins)

❌ Potentially high fees, especially on some of the most popular centralised exchanges

❌ You have to sign up with photo ID (not a problem for some, but worth mentioning)

2: Decentralised Exchanges

The second type of cryptocurrency are decentralised exchanges, or DEX for short. Examples are UniSwap and Curve.

You can think of these like the Betfairs of the cryptocurrency space. Except they’re not just peer to peer markets, but completely decentralised in terms of ownership too, because they’re not owned and controlled by one entity.

So, instead of trusting a centralised private company to hold and exchange your cryptocurrencies, like with Coinbase, you’re instead relying on the cryptocurrency technology itself to secure these transactions without any human interference.

This might seem a bit scary at first, but it’s the whole point cryptocurrencies took off in the first place! The promise of cutting out the middleman and using cryptography to secure financial transactions instead.

And DEXs are now delivering on that promise for trading exchanges, coming at Coinbase and others like Uber went after the traditional taxi industry!

Here’s a breakdown of the pros and cons of decentralised exchanges (DEX)…

Pros:

✅ Not relying on a centralised point of failure, like with Coinbase, so (if you trust in the decentralised tech of crypto) your money held on exchange is potentially safer

✅ Uses cryptographic technology so less vulnerable to hacks (although they can still take place as this tech is still developing)

✅ Much wider array of cryptocurrencies available (and if you want big gains you’ll want to be able to invest in smaller, unheard of coins)

✅ Fees can be much lower because there’s no middleman taking a cut (although because of network utilisation this isn’t currently the case with Ethereum based DEXs)

Cons:

❌ More complicated than using a traditional centralised exchange (although the ease of use of DEXs has come a long way)

❌ No conventional customer support (although many have good online communities where you can ask questions)

❌ Current fees on Ethereum based DEXs are relatively high (though they should come down when Ethereum gets its pending upgrades)

Now, I’m not suggesting you need to leave Coinbase and start using DEXs to trade crypto (I use both centralised and decentralised exchanges depending on what I want to do).

What I am suggesting though is that you consider investing in some DEX related cryptocurrencies (many of which you can even buy on Coinbase!)…

DEX “Betfair cryptos” are going nuts

DEX cryptos are a subset of Decentralised Finance (DeFi) cryptos, which is what we’re building the Crypto With Kash portfolio on.

And DEX cryptos have been performing extremely well over the last year, for example…

UniSwap went from $2 to $29 dollars in less than a year, turning every £100 invested into £1,450.

It’s too late to capitalise on UniSwap, but I’m about to add an overlooked DEX to the Crypto With Kash portfolio this Friday (that’s tomorrow). One that could follow the same path as UniSwap… and maybe even top it in the future.

I’m just finishing my full write up on this crypto.

I’ll let you know when it’s ready tomorrow, and also share some more details about why this specific kind of DEX crypto is popping right now.

This is going to be big

This week we’ve been busy putting the final touches to a brand new service that I’m extremely excited by. It covers an area with huge profit potential both in the short and long term and is something that I’m very much looking forward to adding to my own portfolio.

You may well have guessed already (given some of the content that we’ve put out over the last few weeks) but, today, I can officially reveal that the new service will be in the field of cryptocurrency…

And, naturally, in an area of crypto that isn’t already overexposed and covered by the mainstream. In other words, it certainly won’t just be telling you to buy Bitcoin!

Rather, it’ll be predominantly looking at coins in the ‘DeFi’ sector, some of which have seen gains as big as 14,935% over the last 12 months.

I’ll be unveiling the full details over the next two days, but today I just wanted to refresh your memories when it comes to exactly what DeFi is, and why it’s such a good investment.

The recap

We kicked off our series of articles on the subject here and detailed exactly why cryptocurrencies have value here.

In this article we looked at how Bitcoin in particular is essentially programmed to keep going up in price… 

And lastly, we covered the risks of investing here and how you can store your cryptocurrency here.

Keep your eyes peeled

Hopefully this is a route to profit that interests you as much as does me… 

If it is, then keep your eyes peeled as I’ll be sending you the full details, including how to join the new service, over the next couple of days.

🎧 [LISTEN] Is it too late to buy Bitcoin?

We just sat down for this week’s Q&A with Crypto King Kash.

We discussed…

  • Bitcoin’s surge to $57,000… and where Kash thinks to top is
  • Whether it’s too late to buy Bitcoin
  • How Bitcoin’s price movements are affecting the altcoin and Defi markets
  • Bet Chat reader Kieran’s question about the crypto Cardano… could it be the Ethereum killer?
  • And reader Ron’s question on Blockchain.com wallets… are they OK to trust for small amounts of Ethereum and Bitcoin?

Listen to the conversation now.

Risky Bitcoin – Crypto Wallets (Part 1)

Kash here.

I recently received this question from Bet Chat reader Ron…

“I would like to know more about [cryptocurrency] security. Not that ‘It can go down as well as up’, but what measures are in place to stop an investor’s money being accessed or stolen.”

I answered this question in the recent Q&A call, but I wanted to give a more in-depth overview on crypto risks because this is a very important topic.

You see, while crypto is outperforming every other asset class in 2020 and 2021…

(Bitcoin is the brown line below…)

Those returns don’t come without some caveats.

So, in Part 1 of “Risky Bitcoin” (what you’re reading right now), we’re going to cover…

🔨 Hardware wallets

🍦 Software wallets

💬 Social wallets

🤝 And keeping your money on crypto exchanges

Let’s get stuck into this risky business…

👛 Crypto wallets 👛

Crypto wallets are for, you guessed it… storing crypto! Generally speaking, they work like the banged up old leather wallet you keep your good old British pounds in, except they have some extra security “layers” to keep your crypto safe.

In fact, pick the right wallet and it’s more like carrying around an impenetrable vault in your pocket, on something as small as a USB stick or even your smartphone.

There are four main ways to store crypto: hardware wallets, software wallets, social wallets, or keeping your money on crypto exchanges.

Here are the pros and cons of each…

🔨 Hardware wallets 🔨

What is it?

A crypto hardware wallet is a physical device for storing your crypto. It looks a lot like a USB stick, like this Ledger Nano S wallet…

Each crypto wallet has a private key, and a public key. The public key is the one you give to other people so they can pay you (like your bank account number). And the private key is only for you to know, so you can access your crypto coins.

Every hardware wallet comes with a recovery seed phrase. This is a string of numbers and letters that will allow you to recover your crypto if you lose the physical device.

What are the benefits?

👍 Uses the most secure cryptography on the planet

👍 Small and easy to store

👍 Can set to require physical button presses for every transaction (very safe)

👍 Can store most major cryptos

What are the risks?

👎 You forget your recovery seed phrase (customer support can’t help here)

👎 You reveal your recovery seed or private key to someone else

👎 The wallet is tampered with before you receive it (generally only a risk with low quality suppliers)

How do I stay safe?

🔒 Write down your seed phrase keep it somewhere safe

🔒 Never reveal your private key or seed phrase to anyone else

🔒 Buy your hardware wallet direct from the manufacturer, or a trusted supplier (like Amazon)

What do you recommend?

🥇 #1: Ledger Nano S… £54

🥈 #2: Trezor One… £52

🥉 #3: Yubico 5 NFC… £47

🍦 Software wallets 🍦

What is it?

A software wallet is a digital crypto wallet, usually packaged as a plugin for your browser, or an app for your mobile phone. They’re required for storing some types of crypto. For example, DeFi coins on the Ethereum platform.

This is what the phone app for the popular Ethereum wallet MetaMask looks like…

Thank you for taking the time to read this.

Like hardware wallets, software wallets have a public key and a private key, and usually a seed phrase too (unless they’re using the new “social guardian” security – see the next section on “Social Wallets”).

What are the benefits?

👍 Can’t lose it because it’s not physical like a hardware wallet (although you can still lose your recovery seed phrase)

👍 Use with niche cryptos on platforms like Ethereum (this includes DeFi cryptos, which is the current best performing sector)

👍 Easy to manage as it’s just like any other app on your phone, or plugin in your browser

👍 Still uses the most secure cryptography on the planet

What are the risks?

👎 You forget your recovery seed phrase (customer support can’t help here)

👎 You reveal your recovery seed or private key to someone else

👎 Less secure than a hardware wallet (unless you pair it with your hardware wallet)

👎 More vulnerable to browser based scams and hacks

How do I stay safe?

🔒 Write down your seed phrase keep it somewhere safe

🔒 Never reveal your private key or seed phrase to anyone else

🔒 Only connect your software wallet to legit crypto exchanges and services (do some research first)

🔒 Pair your software wallet with a hardware wallet

What do you recommend?

🥇 #1: MetaMask… FREE

🥈 #2: Trust Wallet… FREE

🥉 #3: MyEtherWallet… FREE

💬 Social wallets 💬

What is it?

This is a new innovation in the crypto wallet world. Instead of having to write down and keep safe a recovery seed phrase, like with most software and hardware wallets, you instead rely on people you trust to keep your wallet safe.

Known as “guardians”, they can be family, friends, workmates, bosses, even other crypto wallets.

The idea is that you pick three or more guardians and then if someone hacks your crypto wallet and, for example, tries to steal all your crypto, the majority of your guardians (so a minimum of two out of three) would have to sign off on it.

Your guardians can message, ring, meet you in person, send a pigeon, anything you like, to make sure it’s you. And if you forget your wallet security details it’s the exact same process. Simply contact your guardians and collectively they can recover your account for you.

What are the benefits?

👍 Don’t have to store a recovery seed phrase somewhere, which you might lose

👍 Good way to get your friends and family into crypto too, then you can all help keep each other’s crypto safe

👍 Easy to use smartphone apps (and some with browser plugins and web access too)

👍 Potentially less risks than other types of crypto wallets (although it’s still early days for this relatively new idea)

👍 Access to niche cryptos (like DeFi cryptos on the Ethereum platform)

What are the risks?

👎 Can be a bit more complex to set up (although this should get better over time)

👍 Currently your guardians need to have a crypto wallet too (although it doesn’t need to be the same brand)

👍 If the majority of your guardians gang up on you, they could steal your crypto (so pick people carefully, and maybe don’t tell them who your other guardians are)

How do I stay safe?

🔒 Pick guardians from different social circles who don’t know each other

🔒 Pick guardians you trust!

🔒 Arrange for your guardians to contact you directly if they’re alerted to any funny business on your account

🔒 Use the built in “delays” some social wallets offer, giving you time to check with your guardians

What do you recommend?

🥇 #1: Argent… FREE

🥈 #2: Loopring… FREE

🥉 #3: Still waiting for newcomers in this space!

🤝 Crypto exchanges 🤝

What is it?

These are centralised privately owned websites where you can buy and sell cryptos with the British pound. If you own some crypto already, you probably use an exchange as they’re currently the most popular, and easiest, way to buy crypto.

Storing money on an exchange doesn’t really count as storing it in a crypto wallet (although some exchanges do offer their own wallets, but the alternatives listed earlier are generally better). If you do this, it’s like holding your money with any other privately owned company. And comes with the same risks (see below).

What are the benefits?

👍 Super duper simple to set up and use (takes about 10 minutes)

👍 Buy cryptos with the British pound (and many other national currencies)

👍 Very quick to buy and sell cryptos

👍 Easily swap cryptos into other cryptos

👍 Customer support for everything to do with the platform (they can’t help you if you lose your recovery seed phrase for your crypto wallet)

👍 Most exchanges curate the cryptos they list, so there’s a decent “standard” to the ones you can buy

What are the risks?

👎 Vulnerable to account scams and hacks (like your email account or any other online account)

👎 Have to show official ID, like passport or driving license, which could be a problem if you’re a intergalactic super villain

👎 Some newer or more exotic cryptos are unavailable (although overtime they can get added)

👎 If the company running the exchange gets hacked and loses your crypto it’s likely you won’t get reimbursed (and there’s no government safety net like with bank accounts)

👎 Potentially high fees depending on which exchange you pick

How do I stay safe?

🔒 Only keep small amounts of crypto on exchanges

🔒 Only store larger amounts for short periods of time (send them to a more secure wallet as soon as you can)

🔒 Stick to popular exchanges and avoid ones that aren’t established or have low trading volumes (see below for recommendations)

🔒 Get any long term crypto holds off the exchanges and into a more secure wallet ASAP

What do you recommend?

🥇 #1: Coinbase… fees info

🥈 #2: Binance… fees info

🥉 #3: Kraken… fees info

Well, there you have it…

Crypto wallets demystified. Hopefully, anyway!

As always, if you have any questions about crypto wallets, exchanges, or anything else crypto related…

Simply email your questions to clients@thebetchat.com, and I’ll make sure I cover them in the days and weeks to come.

Thank you for taking the time to read this.

Kash answers your crypto questions

You asked, we answered.

Well, our resident crypto expert did anyway!

We sat down with Kash to ask him your crypto questions.

We talk about crypto exchanges, hardware wallets, the wonderful world of DeFi, and travelling through time to go back to when Bitcoin was $3,000 (it’s up to $47,000+ right now).

Plus, there are a few technical hiccups at the beginning… oh dear, but that’s all part of the fun of working remotely!

Listen to the conversation here:

Don’t have time to watch the whole session? Skip to the questions you’re interested in ⤵️

  1. How/when did you get into cryptocurrencies?
  2. Do you get excited by the tech behind it? 2:10
  3. Which part of the cryptocurrency market are you currently focused on? 3:58
  4. What is DeFi? 5:04
  5. What wallet would you recommend for assets which can’t be paired with Ledger Nano or Trezor hardware wallets? 7:18
  6. Would you say using a hardware or software wallet is safer than keeping it on an exchange? 9:00
  7. Have you got a checklist for identifying a solid crypto project? 11:02
  8. Would you use crypto trading bots? 15:10
  9. How do I invest in a DeFi coin? 16:35
  10. What measures are in place to stop an investors money being accessed and stolen? 19:21
  11. How do you make this approachable for non-tech savvy people? 21:50
  12. Can you suggest an alternative wallet for trading new crypto coins that aren’t on Trust and MetaMask wallets? 23:53
  13. What is your opinion on the best exchange? 24:55
  14. What is the best way to store crypto? 26:37
  15. How much should I invest? 27:02
  16. What are the fees involved? 29:05
  17. Is trading cryptos tax-free? 30:51
  18. Are some cryptos a scam? 31:42
  19. Is crypto a stable investment? 32:51
  20. Do you invest in a larger or smaller crypto portfolio? 35:36
  21. What sort of time horizon do you invest for? 37:33
  22. What are the complications with login details? 38:44
  23. Can you collect a crypto yield? 41:12