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Coinbase Becoming Custodian For 40 New Altcoins

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According to Coinbase’s new announcement, the exchange is looking into adding up to 40 new cryptos to its custody.

Coinbase custody plans

With each passing day, cryptocurrencies are making more and more progress towards mainstream usage. Various large institutions are looking into them, hoping to find a way to implement them into their businesses. For a lot of investors, this represents an excellent opportunity. However, this is also a significant opportunity for businesses like Coinbase itself.

The exchange recognizes this, and they just issued a new announcement, stating their plans to explore and possibly add additional altcoins. The number of cryptos that the company found interesting exceeds 40. Among the coins that are being looked into are XRP, Monero (XMR), Dash, Telegram, and Tezos (XTZ).

According to the law, institutional funds are obligated to use custodians for securing their assets. Custodians, on the other hand, get to charge fees for keeping such assets safe from theft. So far, Coinbase has been acting as a custodian for 4 different coins — Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

To keep these assets safe, the exchange was charging $100,000 for a set-up, plus a 0.1% on a monthly basis. Additionally, the custodian’s customers have to store a minimum of $10 million. Through the addition of new assets, Coinbase will also increase its earnings from the custody services that it provides.

Coinbase’s plans for the future

This is important to note that the number of different firms that offer the trade of cryptocurrencies is constantly on the rise. Because of that, the margins are expected to drop in the future, and so the company needs an alternative way of making a profit.

The company’s spokesperson did not reveal any sort of a specific timetable regarding the addition of new coins. In fact, they even stated that there is no guarantee that the exchange will actually add all 40+ of them. All that the company is doing for now is exploring these coins.

Of course, Coinbase is not the only crypto firm that offers custody. Additionally, it is not usually selling a lot of assets that it stores in its role as a custodian. With that in mind, it is still unclear as to how much will this expansion actually help with boosting the company’s earnings.

At the moment, Coinbase’s custody consumers include the likes of Polychain Cap, Autonomous Partners, as well as Multicoin Cap. Its goal is to reach 100 or more institutional customers, as well as to store over $20 billion under custody, preferably before 2019 ends.

In the meanwhile, they also stated that next Tuesday will bring a new addition to its crypto list. Traders will finally get the ability to trade Ethereum Classic. The announcement regarding the addition of this crypto came earlier this year, in June. Ethereum Classic currently holds the 14th rank on CoinMarketCap’s list.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Zennie Abraham via Flickr

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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