Multilevel marketing And Ponzi scheme the difference and the bridge
Today’s internet has become so crowded with lots of businesses and opportunities to make money online, and one can easily be deceived by the high ROI (return on investment) of Ponzi scheme, when they are being painted as a multilevel marketing business.
In this regard I have decided to clear the air on the two, separating the one that is an actual business model from the scam and how you should be able to identify each.
What is Multilevel marketing
In recent years, multilevel marketing (MLM) and Ponzi schemes have garnered a lot of attention as methods for operating a business. This has particularly been fueled by the rise of the need for internet and social media in doing businesses.
There may be similarities between multi-level marketing and Ponzi schemes at first glance; nevertheless, there are significant distinctions between the two types of businesses. You need to be aware of the distinctions between these two strategies in order to make an informed decision about the best place to invest your money.
A multilevel market is a business model where, a business sells its products or services through a network of self-employed salespeople who are referred to as “distributors” or “associates.” These distributors are responsible for establishing a network of salesmen that can extend to a great depth. They get income not just from the sales they produce themselves but also from the sales generated by customers that they attract into the company.
In the multi-level marketing industry, distributors are frequently incentivized with commissions and bonuses to bring in new consumers. Although a Ponzi scheme does this same thing, but their sustenance is different.
The fact that multi-level marketing places more of a focus on personal selling rather than advertising through mass media is one of the things that sets it apart from other forms of business. Therefore, in order to bring in new customers and increase their profits, distributors need to use their own personal networks.
Multiple-level marketing (MLM) is seen with skepticism from some individuals, who believe that the term is only a front for an illegal pyramid scam. Everyone in a pyramid scheme is responsible for recruiting new people to join the organization. A portion of the revenue generated by the members at the top is distributed to those at the bottom of the hierarchy. The fact that the vast majority of people who take part in a pyramid scheme end up with nothing justifies the plan’s classification as illegal.
Network marketing is not like a pyramid scheme. Although there is more than one level in multi-level marketing, which is often known as MLM, it is still a valid technique to sell genuine products and services. On the other hand, in a pyramid scheme, there is no actual product or service that is being marketed to participants. Rather than that, the primary objective is to recruit new members.
On the other hand, Ponzi schemes are frauds that take advantage of people’s desire for high returns with little to no risk. Charles Ponzi, a con man who worked in the early 20th century, is credited with popularizing this type of fraud. It requires a constant search for new investors in order to generate profits for existing investors.
Ponzi schemes all share a few characteristics, and it is against the law in many countries, including the United States, to participate in them. The promise of extremely large earnings with little to no risk is one of the things that draws people in the most. Investing in a Ponzi scheme typically comes with the promise of returns that are significantly higher than those that could be obtained from more conventional assets such as equities or bonds.
Identifying Ponzi scheme
The majority of the time, the payments made to later investors are covered by the returns received from earlier investors. As a consequence of this, it gives the impression of being a worthwhile investment, despite the fact that there is none. However, the program is never successful since it is unable to keep up with the returns because with time, the business will run out of new investors joining.
Each and everytime ones comes across a business model, you begin to ponder if it is a MLM or just another Ponzi scheme.
It may be difficult to identify Ponzi schemes due to the fact that they frequently have the appearance of being genuine. The following is a list of warning signals that you should keep an eye out for:
Investment methods that are difficult to understand or prove
There is a lot of stress on hasty investing.
Regarding the investment, there is not a great deal of available information or statistics.
Having difficulty obtaining your money
You should never risk your money on an investment opportunity without first exercising extreme caution and carrying out an extensive amount of background investigation. Checking the legitimacy of the company as well as the investment itself and, if necessary, consulting with a financial professional are both important steps in this process.
Risk assessment of MLM and Ponzi Schemes
The potential for financial loss is one of the most significant dangers associated with multi-level marketing. It’s possible that some people will be successful in making money by beginning a multi-level marketing (MLM) firm, but a vast majority of people won’t be able to do so. It is essential for the success of a multi-level marketing (MLM) enterprise that the goods or services one has to offer are of a high quality and in high demand, that the sales and marketing strategies implemented are effective, and that the distributor is ready, willing, and able to invest time and energy into expanding the MLM enterprise.
People who participate in MLM run the risk of becoming estranged from their families and friends. A significant number of multi-level marketing (MLM) businesses place a heavy emphasis on face-to-face interactions as well as social networks in order to increase sales and expand their channels of distribution. Relationships may become strained as a result of the increased competitive pressure to produce sales or recruit new members.
Other factors, such as issues with the legislation or regulations imposed by the government, can also be detrimental to the success of network marketing businesses. If a multi-level marketing (MLM) company is found to be in violation of the laws and regulations that govern their industry in certain nations, such as the United States, the company may be subject to financial penalties as well as possible legal action.
On the other hand, Ponzi schemes are typically illegal and fraught with peril for the investors who participate in them. Investors are typically left with nothing and may have a difficult time obtaining any of their money back when these cons are discovered to be fraudulent.
Keep In Mind
Before devoting your time or money to a firm or investment opportunity, you should educate yourself on the distinction between multi-level marketing and Ponzi scams and conduct extensive research on the organization in question. In order to achieve this goal, you must first have an awareness of the potential drawbacks and hazards, carry out an extensive amount of study, and consult with a monetary specialist. People will be able to avoid falling victim to financial scams and make more informed choices regarding business possibilities if they follow these guidelines.
In summing up, multi-level marketing (often known as MLM) and Ponzi schemes are two incredibly distinct types of enterprises. Compare this to a Ponzi scheme, which is a fraudulent method of investing that proposes high returns while posing little to no risk and entails selling worthless Ponzi tickets rather than actual products or services through a network of independent salespeople. A Ponzi scheme is an example of a pyramid scheme. Although multi-level marketing (MLM) has the potential to be a legitimate business model, there is also the risk that it could be fraudulent.
As we are not certified financial advisors, please do not mistake the information presented in our publications for actual financial guidance. It is totally up to you to decide how to allocate your money. Before you make any big financial decisions, you should educate yourself and talk to an approved financial advisor. This article and all therein are for educational purpose only.
Crypto tax evasion: how to and why you must avoid doing it
Crypto tax evasion has recent in years gained traction, due to the increase in the buying, selling, and trading of cryptocurrencies, which is indicative of the attractiveness of these transactions as an option for investment. But, as the use of cryptocurrencies increases, so does the necessity to regulate and tax them.
- What is crypto tax evasion
- How are crypto-currencies taxed
- Crypto tax evasion
- How people evade taxation on cryptocurrencies
- How Government track cryptocurrency taxes
- Why crypto tax evasion is dangerous
What is crypto tax evasion
Crypto taxation has emerged as one of the most important topics of conversation among investors, regulators, and tax officials as nations around the world attempt to determine how to handle this new kind of wealth.
Crypto taxation is not standardized across countries or jurisdictions because of their decentralized nature. The vast majority of governments, on the other hand, consider cryptocurrencies to be property for the purposes of taxation; as a result, transactions involving cryptocurrencies are taxed in the same manner as transactions involving property.
How are crypto-currencies taxed
The Internal Revenue Service (IRS) in the United States, for example, considers cryptocurrencies to be property and taxes its gains in accordance with the system used to tax capital gains on other types of property. This indicates that a capital gains tax will be levied on the difference between the cost basis, which is the price at which a cryptocurrency was initially purchased, and the price at which it is sold.
The capital gain also covers other events such as selling, staking and even losses. Yes losses too can be calculated in cryptocurrency taxes, since cryptocurrencies are taxed like regular property, the same law that binds the trading of property binds them.
According the IRS, you can write off crypto losses by deducting them from capital gain and if the capital gain can not offset the losses, you can trim up to $3000 from regular income.
Your loss is determined by deducting your selling price from your basis (the amount you paid for the asset originally). This amount is then reported on your tax return, both on Schedule D and Form 8949. If your bitcoin losses are more than your other investment profits and your monthly income of $3,000, you can carry the rest over to the next year. According to Greene-Lewis from the IRS.
Gains on cryptocurrencies that have been held for more than a year are subject to a lower rate of taxation, whereas gains on cryptocurrencies that have been held for less than a year are subject to the individual’s ordinary income tax rate.
A person’s tax return will benefit from careful record-keeping of their purchases and sales of bitcoin, which are alternately referred to as the “cost basis” and the “selling price.” This can be challenging to achieve for a number of reasons, including the unpredictability of the value of cryptocurrencies and the difficulty in determining an appropriate cost base. Yet, there are apps and services available that enable individuals to monitor their bitcoin transactions and calculate the amount of tax that they are required to pay.
Individual crypto taxation returns
Keep in mind that cryptocurrency is still in it’s infancy stage and so different nations are still trying to figure out how to handle cryptocurrencies as a form of wealth, which means that the rules and regulations around the taxation of cryptocurrencies may change in the future. Individuals need to consult with a tax expert or accountant so that they may accurately record their earnings from cryptocurrency and ensure that they are in compliance with the tax requirements that apply in their local jurisdiction.
Crypto tax evasion
Crypto tax evasion occurs when an individual or company either fails to record cryptocurrency income or gains on their tax returns or purposefully underreports the amount of income or earnings in order to decrease their tax liability. In general, tax evasion occurs when an individual or company fails to record income or gains on their tax returns.
How people evade taxation on cryptocurrencies
Crypto tax evasion is a broad subject, and and the subject has been evolving, people are devising more ways to bypass taxing, some of these methods are enumerated below;
Crypto mining/staking taxes
Some people may decide not to report earnings from cryptocurrency mining, staking, or other activities on their tax returns in order to avoid having to pay taxes on those earnings.
Crypto sales tax evasion
On tax returns, gains made from the sale of cryptocurrency may be underreported. This may be the case either because the transactions themselves were not reported at all or because the gains reported were significantly lower than the gains that were actually made.
Anonymous wallet/ Offshore savings
People may try to conceal their cryptocurrencies by storing them in wallets that are anonymous or that are located offshore. This makes it more difficult for tax authorities to identify and track these crypto holdings.
With the anonymity crypto transactions provide, people can easily avoid paying taxes or hide from authorities. Cryptocurrencies are also being utilized for nefarious activities like money laundering and the distribution of illegal drugs.
How Government track cryptocurrency taxes
Companies involved with cryptocurrencies, such as exchanges and payment processors, have the opportunity to evade paying taxes by either not reporting any income at all or reporting a substantially lower amount of income than they actually made.
Tax evasion is a serious crime that carries severe repercussions and can result in incarceration, in addition to substantial fines and other punishments. Investors and businesses who deal in cryptocurrencies must be certain that they are in accordance with the tax legislation of their respective jurisdictions in order not to fail prey of the other side of the law.
The government has access to a number of resources, which it can use to track down individuals who cheat on their crypto tax obligations.
Monitoring of Transactions
The government has the ability to monitor transactions on the blockchain and identify those who are concealing the income they have earned from such transactions.
The government compels cryptocurrency exchanges to report all trades to the authorities, including the identity of the purchasers and sellers in each transaction. The government is able to perform a cross-reference between the income reported on tax returns and the transactions recorded by the exchanges as a result of this.
By exchanging information with one another regarding the transactions conducted using cryptocurrencies, governments are able to identify individuals who may be evading taxes in one jurisdiction.
Audits are able to be carried out by the relevant tax authorities in order to confirm the income and transactions that have been reported by individuals and companies.
Anyone who is aware of any illegal tax practices can “blow the whistle” and inform the government thereby receiving a reward from the government in exchange for giving such information.
Why crypto tax evasion is dangerous
The importance of people and organizations disclosing their cryptocurrency transactions and profits in order to steer clear of the legal and financial repercussions that are associated with tax evasion can not be overemphasized.
Avoiding paying taxes with cryptocurrencies has a variety of significant drawbacks, none of which should be disregarded.
Tax evasion is a criminal offense that is punishable by the law. Those who are found guilty of tax evasion face the possibility of being subjected to severe consequences, such as monetary fines and possibly even jail term.
Some of the most feasible of these dangers are;
Damage to ones reputation
A conviction for tax evasion can have catastrophic implications on an individual’s reputation, which may, in turn, hinder their access to better work opportunities and other benefits in the future.
Problem with accessing monetary aide
Challenges in obtaining financial aid and credit cards If a person is found guilty of evading taxes, they may have problems in the future obtaining financial services such as loans and credit cards.
Individuals who are suspected of evading taxes may be subjected to a higher level of scrutiny from tax inspectors, which may be both time-consuming and distressing for the suspects.
A person who has been found guilty of tax evasion may be required to pay back taxes as well as penalties, there is a possibility that they will lose their property as a result of their conviction.
Tax evasion has the potential to cause irreparable damage to the reputation of the whole crypto economy, which will make it significantly more difficult for honest traders to turn a profit.
As a result, avoiding taxes in the cryptocurrency industry is not only against the law but also loaded with substantial risks that can have far-reaching implications not only for individuals but also for the industry as a whole.
Taxing Crypto: A Guide to Cryptocurrency Tax Laws
Is a tax imposed on cryptocurrency purchases only? Do I need to pay tax if all I do in Europe is buy and hold cryptocurrency ? If you happen to have any of these questions, then join me as we dive into the exciting world of crypto taxing.
How Did Crypto Taxing Come About
The use of cryptocurrencies is increasingly moving beyond the confines of their previously exclusive niche market and into the mainstream financial systems of nations all over the world. Because of this surge in popularity and utilization, there has been a concomitant increase in the number of laws and taxes. The legislation and tax laws that surround cryptocurrencies are likely to continue to develop alongside the industry as a whole.
As a means of injecting money back into the economy, a number of nations are exploring the possibility of taxing cryptocurrency users on their gains. But to what extent do some of these tax regulations go too far ? While some are more user-friendly; nevertheless, it is difficult to tell which is which.
Let’s investigate a few of Europe’s most notorious tax havens and hells together. A tax haven is a region where an individual stands to be shielded away, partially or totally from taxation. Some of the know tax haven are cited below;
When it comes to cryptocurrency, Germany is not a tax haven; nonetheless, the country’s cryptocurrency taxes are simple to sidestep. Because cryptocurrency is regarded as private money rather than a capital asset, holders who keep their coins for more than a year do not need to pay taxes on them. If you do decide to cash out after the first year has passed, you won’t have to pay taxes on your earnings unless they are more than €600.
For staking earnings to be exempt from taxation, the asset in question must be held for a period of more than ten years. If your employer pays you in cryptocurrency or if you mine cryptocurrency for a living, you could be subject to crypto income tax. Aside that, Germany is quite supportive of cryptocurrencies, and the country has few tax restrictions that cut into revenues.
France is one of the countries that taxes cryptocurrencies, but the country has recently taken efforts to figure out how to do it in a way that is beneficial to both cryptocurrency users and France itself. The tax rate on income made from the sale of cryptocurrencies was modified by the French State Council, resulting in a reduction from up to 45% to 19%. The purchase and sale of cryptocurrency have been recategorized as sales of movable property rather than capital profits.
As of 2018, Portugal was a tax-free sanctuary for digital currency investors. Taxes can apply to you if you run a company that deals in cryptocurrencies or if you are a trader who does it professionally. There is no taxable income associated with the sale or purchase of cryptocurrencies. At this time, neither investment nor income tax is taken into consideration for it.
No value-added tax, income tax, or tax on capital gains will be imposed in Portugal on individuals who are not engaged in commercial or professional trading. The government of Portugal considers cryptocurrencies to be a currency in its own right, rather than merely an asset. If you want to live somewhere with plenty of sunshine and no income tax, Portugal might be the place for you.
The Federal Tax Administration of Switzerland has published a working paper for the year 2019 that reaffirms the tax-free status of the selling of cryptocurrency by private parties. This means that you can invest in cryptocurrencies without having to worry about paying capital gains tax on the earnings that are achieved. Those that invest professionally will be subject to taxation.
If you are looking for a place that offers favorable tax conditions, consider moving to Slovenia. Individuals in Slovenia will not be subject to taxation on income made from the sale of cryptocurrencies, according to a recent announcement made by the Slovenian Financial Administration. If you engage in commercial or professional activity, you could be subject to taxation.
In Norway, the selling of cryptocurrencies is considered a type of capital gain and will be subject to a tax rate of 25%. Mining cryptocurrency is seen as taxable revenue in Norway as well because of this perception. Companies will be required to pay corporate income taxes on any profits made from bitcoin sales in addition to the standard VAT rate of 25%.
You will be required to file and pay income tax on capital gains if you sell bitcoin in the United Kingdom. As a taxpayer, you can wind up having to pay a rate that is 20% or greater, in addition to any other applicable rates. If your capital gains are less than £12,300, you are eligible for the tax-free allowance exemption.
Taxes on the fictitious gains made by users of cryptocurrencies are levied at a rate ranging from 0.54 to 1.58 percent in the Netherlands. This rate is considered to be relatively low. Hence, even if you do nothing except sit on your gains, you will still have to pay taxes on them at some point. Staking, mining, and trading are examples of the kind of activities that are subjected to this kind income taxation.
Tax evasion is taken very seriously in Spain, the country mandates that all of its people reveal any earnings they make from trading cryptocurrencies. Profits from transactions with a short time horizon, often less than a year, may be subject to a tax rate ranging from 24 to 52%. Profits from long-term commerce could be subject to a tax rate of up to 23%.
The Italian tax authorities have reached the conclusion that cryptocurrencies are analogous to other countries’ currencies. A substitutive tax will be levied on any income earned from exchanges involving cryptocurrencies or involving the conversion of cryptocurrencies into traditional currencies. On all of your sales, you will be responsible for paying a flat amount of 26% in tax.
When it comes to the taxation of cryptocurrencies in Europe, Malta is a very fascinating region to look at. Despite the fact that they are an island, they are nonetheless members of the European Union. Although most people assume Malta to be a crypto tax haven, the country actually has some very stringent tax rules in place.
In general, Malta has a highly bullish stance toward digital currencies and blockchain technology. They think of it as a unit of account, a medium of trade, and a store of wealth all rolled into one. There is also no tax on capital gains for income made over a lengthy period of time, which enables you to hodl without worry.
Those who engage in day trading will, however, be subject to taxes that are of an extremely high severity. Day traders are categorized similarly to stock or share traders in Malta, and as a result, they are subject to the same levels of income tax as businesses. Day traders may be required to pay a maximum tax rate of 35%.
Depending on the percentage of profit you made and your citizenship status, you can be eligible for a tax break. This is an exceptionally punitive measure taking into consideration that a day trader may make approximately €800 per day, but they would be required to pay an additional €280 in tax. Then there is the matter of the losses that they most likely incurred as a result of the turbulent markets.
Why Is Crypto Asset Taxed?
If there is one reason we have seen so much fear, uncertainty, and doubt (FUD) pushed by governments and authorities, it’s probably because cryptocurrency is destabilizing their economies. The value of national fiat currencies is determined by the performance of their respective economies, but the price of a cryptocurrency is determined by the economy of the project in addition to supply and demand. Users would need to change their fiat currency, such as US dollars or Euros, into Bitcoin or Usdt in order to purchase cryptocurrency.
People move money out of their country and into another economic system when they invest it in cryptocurrencies like Bitcoin or one of the many other cryptocurrencies available. Because of this, governments lose direct control over the value of the money that is being converted, which directly affects the funds that they have available. The growth of cryptocurrencies has a direct and negative influence on the government; as a result, the government is actively working to regain power and is attempting to tax you on the success of cryptocurrencies.
Regulation and taxation of cryptocurrencies are still in their infancy, and the majority of nations have not yet begun to comprehend what blockchain technology is. Even one of the most well-known tax havens in the world, such as the Cayman Islands, nevertheless has certain inefficiencies in its system. There is a possibility that we will still have to wait a little while longer before other countries’ governments adopt global currencies like we have seen in El Salvador.
There are several nations in Europe that now have excellent crypto tax rules, and there is nothing keeping you from enjoying your winnings while you are in any of those countries because of this fact. We hope that this article was helpful in providing you with further information about Europe’s crypto tax.
As we are not certified financial advisors, please do not mistake the information presented in our publications for actual financial guidance. It is totally up to you to decide how to allocate your money. Before you make any big financial decisions, you should educate yourself and talk to an approved financial advisor.
4 ways of Sending and receiving money across borders
Sending and receiving money across borders has become a need for many individuals and businesses in an increasingly linked world. Fortunately, with the development of web 2.0 and 3.0 technologies, international money transfers have become more streamlined, efficient, and safe than ever before.
- How sending and receiving money across borders has improved with technology
- Factors that influence money transfer method
- Popular means of Web 2.0 Transfers
- Decentralized finance
How sending and receiving money across borders has improved with technology
From peer-to-peer transfers to international wire transfers, there are numerous web-based platforms and services that provide dependable and simple solutions for moving money around the world. In this post, we will look at some of the most popular web 2.0 and 3.0 methods for sending and receiving money, as well as advice on how to choose the best platform for your unique needs.
Web 2.0 and web 3.0 technologies have brought a great deal of new insights to money transfer. There have been several development in web 2.0 and 3.0 technologies in bank transfers and international wire transfer methods.
International transfers can now be processed in as little as a few seconds compared to days it used to take for banks or wire transfer methods to complete such processes.
While these development have been astonishing it’s yet does not satisfies everyone’s to desire on how they want to transfer their money.
Factors that influence money transfer method
Some of the factors that are being considered when choosing a method of how to transfer your money are the speed of transaction, technical knowledge of the method with which you are sending the money, and your understanding of the platform in which you are doing the transfer.
The transactions charges involved which is the transaction fees and the exchange rate of platform which you are using.
For the speed of transaction the web 3.0 method of transferring money which include the use of blockchain are actually the fastest means of money transfers. But the technical know-how of how to use this platform is where the majority of the problem lies. Web 3.0 is a recent technology and its adoption is merely in its infantry stage.
Understanding the platform
Having an understanding of The platform in which you are about to do your transfer is very critical and very crucial to the transfer you about to make. If you lack the understanding of the mechanism of operations of a particular means of transfer you may end up sending money to a wrong address or lost the money to a non-refundable address and you may not recover the money especially with the use of web 3.0 technologies.
In web 3.0 technologies, transactions are decentralized and one way, if your transact to the wrong address, there is no customer helpline that can help you get your money back.
This is another important aspect a very few set of people consider, for transactions that you want to hide under the nose of everyone (unnoticed) web 3.0 methods of transfers are your go-to. Web 3.0 transfer method are the most secure means of sending and receiving money fast and unnoticed by the general populace. The only public thing people can get to know about a transfer you make is your wallet address for that particular chain which reveals nothing about you.
Transaction charges is also another important aspect to look into when choosing a means of transfer. Most people pay a gruesome amount to transaction charges without giving proper considerations to alternative means or blockchains as the case may be in web 3.0.
Transactions performed on blockchain are also charged a fee that varies from blockchain to blockchain. As transactions performed on web 2.0 services depends on the amount being transferred.
The exchange rate of the platform which you want to use is also another important factor worth considering. Several wire transfer, banking and web services that do international transfer reap customers by selling their virtual money for a high price to the customer who wants to send it to another person far away. And when the money gets to the recipient, the also charge higher to withdraw the money into their customary bank accts.
But this very different in the cryptocurrencies economy where transactions are usually based on black market rates of a country’s currency. And this is usually to the advantage of everyone when both parties involved (the sender and the recipient understand how crypto works)
Popular means of Web 2.0 Transfers
One of the most popular means of transfer that is still popularly in use today is the use of wire transfers which involves banks and intermediary agents.
Wire transfer could be used to send a certain amount of money through an intermediary agents to another person in a far-distant continent but the disadvantage of wire transfers and bank transfers or international transfer are the exorbitant fee which they charge.
Western Union and MoneyGram
Western Union and MoneyGram are also means of wire transfers that is readily available to almost every country. Every country in the world accept MoneyGram but Western Union is common to the Western European parts of the world.
International bank transfer may cost a transfer fee of up to 20 or 15% or 10% of the amount which you want to send. This is a very significant amount or a dent to the amount which you want to send.
In the early 2000s, some group of people came up with the idea of creating a payment apple which was the PayPal app. Since it’s inception, it has been a very successful and a fast means of transaction and is most widely used in many countries. Although PayPal have a few restriction in some of the African countries and some other countries.
Aside from paypal you can also use transferwise or world remit to send or receive money from your relatives or friends or customers around the World in no distant time.
Decentralized finance is the branch of cryptocurrency which has made it easier for people to send and receive money without much knowledge of the cryptocurrency networks.
There have been huge advancement in this field and has led to the development of several networks such as the Remitano, Request network and OmiseGo.
This payment options that made it easier to transact money from one region of the world to another in new distant time and in as little as the speed of a second request money and receive it in the other end.
Other forms of cryptocurrency payments involves the use of popular crypto-currencies such as Bitcoin or ethereum to make transactions. You can receive or send money through is any of this network in a few seconds or minutes (depending on the Blockchain) and when money arrives at the destination, The person just need to sell the crypto and get the money into his own account.
Stablecoins can also be used as a means of payment or means of transfer for assets or funds. Stablecoins are usually cryptocurrency except that are pegged to a fiat currency.
The most popular stablecoin is the USDT, which is pegged to the United States dollar 1 years. It is equivalent to the one United States dollar. Another popular stablecoin is the BUSD which is a stable coin of the binance exchange.
DAI is also a stablecoin used by some major exchanges but the most popular is the USDT, and has the widest acceptability.
Advantages of sending and receiving money across borders with Web 3.0
Advantages of these transactions involve;
- Lower transaction charges
- Decentralized transactions,
Cryptocurrency transaction are fast, and less expensive compared to centralised and wire transfers and they are highly accessible to everyone. Anyone with the technical knowledge of how to transfer crypto assets can easily make a transfer and they are the most secure means of transaction presently.
Disadvantages of sending and receiving money across borders with Web 3.0
These benefits come at a cost, the security and accessibility provided by cryptographic transactions come at a cost especially for people who don’t have much technical know-how of how these schemes operate if you fall prey of sending a transaction to the wrong address they are totally irreversible. Or West you when you fall victim of a scam transaction, there is no one you can complain to, to get your money back.
Gaming and metaverse3 months ago
crypto games that pay real money
Gaming and metaverse3 months ago
Metaverse and gaming in cryptocurrency
NFTs8 months ago
What Are NFTs And Why Are They Worth Millions
Cryptocurrency9 months ago
What Is Cryptocurrency And It’s Utilities
Finance7 months ago
How CBN Redesigned Naira Notes Is Affecting Exchange Rate
Finance4 months ago
CBDC’s, Digital Currencies And Their Utilities
Cryptocurrency8 months ago
See 2 Ways Market Whales Manipulate The Market And How You Can Avoid Them
NFTs7 months ago
CR7 NFT Is Coming To Binance NFT Marketplace After One Year Partnership With Binance