Ethena partnered with Derive, the leading on-chain options protocol, to integrate USDe as yield-bearing collateral for options trading and launch new structured products. 

The S&P 500 gained 0.05%, reaching another record high as investors analyzed strong October job data. Focus now turns to upcoming labor market reports and Fed Chair Powell's speech on Wednesday. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.38%, with Bitcoin and Ether dropping by 0.002% and 0.05%, respectively in the past 24 hours.

Today's top performer is TRX, which surged 68.6% after TRON DAO was recognized for its Global Blockchain Innovation at the Wiki Finance EXPO 2024.

Tron DAO (TRX), launched in 2017, leverages established blockchain technologies like dApps and smart contracts to enhance user experience rather than innovating on network design. It gained notable attention after acquiring BitTorrent in 2018, emphasizing its focus on proven technologies to potentially reshape Web 3.0. At Wiki Finance EXPO Dubai 2024, TRON DAO was honored with the "

" for its exceptional contributions to advancing blockchain innovation worldwide.

Check Out the Latest Prices, Charts, and Data of 

, the leading on-chain options protocol, to integrate USDe as yield-bearing collateral for options trading and launch new structured products. As part of the partnership, Ethena provided a multi-million dollar grant, and sENA holders will receive 5% of Derive’s DRV token supply. Derive, with 75% market share in on-chain options, processes $250M weekly volume and supports advanced financial products. This collaboration strengthens Ethena’s ecosystem, promoting USDe adoption and enhancing DeFi innovation with Derive’s expertise and composable financial tools. Ethena invites builders to join its growing network.

Yesterday, the BTC Spot ETF saw a total outflow of $17.3 million, with GBTC showing no flow and Non-GBTC experiencing an outflow of $17.3 million.

 will be available for claim on December 6, 2024, at 10 AM UTC. A total of 750 million $F tokens (7.5% of the supply) are allocated for eligible participants. The airdrop will be fully unlocked immediately. Eligibility includes SynFutures v1 and v2 users, v3 Oyster Odyssey points holders, long-term active users, and winners of select community campaigns. For more details, visit the official claim site and the 

Beginner

2.png

Ethena Partners with Derive to Boost USDe Adoption and Enhance DeFi Innovation

As Bybit celebrates its sixth anniversary, the exchange has solidified its position as a leading player in the cryptocurrency market.

As Bybit celebrates its sixth anniversary, the exchange has solidified its position as a leading player in the cryptocurrency market. With significant growth in both its user base and variety of trading products, Bybit is not only expanding its offerings, but also enhancing its market influence. This article highlights the attached report’s key messages, focusing on user growth, spot trading, perpetual futures and options trading.

Since its inception in 2018, Bybit’s user base has experienced explosive growth, surpassing 60 million users by Q3 2024. This remarkable increase — from 20 million users in late 2023 — underscores both the platform's appeal and the growing global interest in cryptocurrency trading.

Several factors have contributed to this user growth. First, Bybit's continual innovation and its introduction of new trading products have attracted a diverse range of traders. Additionally, the platform’s user-friendly interface and robust educational resources have made it accessible to newcomers in the crypto space.

Moreover, the rising popularity of cryptocurrency, as well as favorable market conditions — such as the anticipation surrounding Bitcoin Spot ETFs — have drawn more users to the platform. The report indicates that the influx of new users has led to increased activity, further driving demand for various trading pairs.

Spot trading on Bybit has seen significant expansion, with daily volumes exceeding $10 billion by 2024. This growth is particularly notable given the turbulent market conditions that have characterized the past few years. The report highlights that spot trading volumes grew steadily, especially during bullish market phases, driven by heightened interest in altcoins alongside Bitcoin.

The number of available spot trading pairs has more than doubled from 2022 to 2024, catering to the diverse preferences of traders. Increased spot pair availability has not only attracted more users, but has also contributed to a robust trading environment in which traders can capitalize on various market opportunities.

Tellingly, the report notes the relationship between Bitcoin's price movements and spot trading volumes. As Bitcoin rallies, there’s a substantial uptick in trading activity for both Bitcoin and altcoins, indicating a capital rotation effect that’s common in cryptocurrency markets.

Perpetual futures remain one of Bybit’s most popular trading instruments, consistently outpacing spot trading volumes. During the March 2024 rally, perpetual trading volume reached nearly $70 billion, highlighting traders' preference for leveraged trading options that these contracts provide.

The appeal of perpetual futures lies in their flexibility, allowing traders to take both long and short positions while utilizing 

 to amplify potential gains. This makes perpetual futures an attractive option for traders seeking to optimize their capital efficiency.

Despite the steady growth in spot trading, perpetual futures have maintained a dominant position in the market. The report indicates that while spot trading volumes have increased, they still lag behind those of perpetual futures, reflecting a strong preference among traders for these derivative products.

Bybit’s continual enhancement of its perpetual futures offerings, including a wider range of trading pairs, has further solidified its leadership in this segment. The growth trajectory of perpetual futures is expected to continue, particularly if market conditions remain favorable.

 market, although smaller than its perpetual futures segment, is experiencing noteworthy growth. Since its launch in 2022, the options market has expanded, reflecting an increasing number of traders willing to engage with more sophisticated trading instruments.

The report reveals that Bitcoin options dominate open interest within Bybit’s options market, with a growing preference for call options over puts. This trend indicates traders’ optimism about Bitcoin’s future price movements, particularly following the recent price rallies.

Solana options, introduced more recently, are also gaining traction, showcasing the evolving landscape of cryptocurrency derivatives. The report highlights a clear upward trajectory in open interest for Solana options, driven by increasing demand for exposure to emerging cryptocurrencies.

As traders become more familiar with options trading, the market is expected to mature, providing further opportunities for innovative trading strategies and 

Bybit’s sixth anniversary marks a significant milestone in its journey as a leading cryptocurrency exchange. With a rapidly growing user base, robust spot trading activity, dominant perpetual futures volumes and burgeoning options market, Bybit is well-positioned for continued success.

These developments not only reflect Bybit’s commitment to enhancing its offerings, but also highlight the broader trends within the cryptocurrency market. As traders seek diverse and sophisticated trading instruments, Bybit’s adaptability and innovation will likely play a crucial role in shaping its future.

Advanced

Bybit 6th Anniversary Report.png

Bybit’s 6th Anniversary: A Journey of Growth and Milestones Toward Becoming the No. 2 Crypto Exchange

Bybit Cloud Wallet offers a seamless way to manage cryptocurrencies without having to handle private keys. Learn more about how it works in this article.

Bybit Cloud Wallet makes crypto management seamless for everyone by offering a user-friendly platform for storing and managing cryptocurrencies without the hassle of handling 

 not only enhances security but also simplifies interactions with Bybit Web3 services. In this article, we'll explore how Bybit Cloud Wallet works and its benefits and risks, and provide a step-by-step guide to using the wallet. 

Bybit Cloud Wallet is a custodial digital wallet integrated with the Bybit platform, allowing users to store and manage cryptocurrencies without handling private keys directly. It offers enhanced security and accessibility for web3 interactions.

Bybit Cloud Wallet is a custodial wallet, meaning that Bybit manages the private keys on behalf of its users. This design simplifies the experience by removing the burden of securely storing seed phrases or private keys. It integrates with Bybit accounts to streamline cryptocurrency management and provide secure handling for private keys.

Users can access their wallet by logging into their account and completing the Cloud Wallet setup. A unique wallet address is generated, and the associated private keys are securely stored on Bybit's cloud servers. Once the wallet is configured, users can safely store, manage and transact a variety of digital assets. 

When initiating transactions — such as sending or receiving cryptocurrency — a request is created and securely transmitted to Bybit’s servers. The provider verifies the request using the stored private keys, ensuring it’s been authorized by the rightful owner.

Depositing funds into the Bybit Cloud Wallet is straightforward, and users can transfer cryptocurrencies from other wallets within the Bybit Web3 platform with ease. Withdrawals follow a similarly simple process, whereby users specify the amount and destination address while selecting their preferred gas fees.

The wallet uses standard security protocols to protect user accounts and funds from unauthorized access. While the custodial nature of the wallet makes it user-friendly, it also necessitates trust in Bybit's security practices.

Bybit Cloud Wallet integrates with various Bybit Web3 services, enabling users to trade, 

 (DApps) directly through the wallet’s interface.

Bybit Cloud Wallet offers a range of benefits for users seeking an efficient and secure way to manage their cryptocurrency assets.

While Bybit Cloud Wallet offers numerous advantages, users should also be aware of several inherent risks associated with its use.

: Navigate to the Bybit homepage and log in to your Bybit account. Then, click on the 

tab on the top left corner of the page. 

. This will generate a unique wallet address associated with your account.

Now that you’ve created your Bybit Cloud Wallet, here’s how you can deposit tokens and start interacting with DApps. There are two ways in which you can deposit tokens into your Bybit Cloud Wallet — by transferring from your Bybit Funding Account, and by transferring from your external wallet.

: Please ensure that you already have funds in your Bybit Funding Account before you proceed with the steps below. 

: Hover your cursor over your profile icon in the upper right corner of the Bybit homepage, and click on 

 (Web3) and your Bybit Wallet (Web3) address will automatically be filled. Select your preferred 

and enter the amount you wish to withdraw to your Bybit Wallet (Web3).

: After you’ve checked and verified all details, click on 

Congratulations! You’ve successfully transferred assets from your Bybit account to your Bybit Cloud Wallet!

Let’s use MetaMask and the BNB chain as an example. 

: Navigate to your MetaMask wallet. Then, click on the 

. Click on the copy icon to copy your Bybit Wallet address.

and paste your Bybit Cloud Wallet address into the input box. 

: Please make sure you choose BSC. Otherwise, your USDT and BNB may not be transferred successfully.

Congratulations! You’ve successfully transferred assets from your external wallet to your Bybit Cloud Wallet.

 next to the token you would like to withdraw, and transfer your funds to your Bybit Funding Account.

, enter the amount you would like to withdraw, choose your gas fees and click on 

: Confirm the details, request the verification code and submit your withdrawal request.

 next to the token you would like to withdraw, and transfer your funds to your external wallet.

: Enter the receiving wallet address and the amount, and choose your gas fees. Click on 

: Review the details, submit the verification code and confirm your withdrawal.

: To view your transfer history, hover your cursor over the 

tab in the top-right corner of the Bybit Web3 page, and click on 

: You can check your deposit and withdrawal history under either the 

Who Is Best Suited to Use the Bybit Cloud Wallet?

Bybit Cloud Wallet combines ease of use with robust security measures, making it a suitable option for users who prefer not to manage their own private keys, while still being able to conduct cryptocurrency transactions.

Individuals who are new to cryptocurrencies will find Bybit Cloud Wallet appealing due to its user-friendly interface and custodial nature, which eliminates the need for managing private keys. This accessibility allows users to engage with digital assets without needing extensive technical knowledge.

 services will also appreciate the wallet's integration with various DApps and platforms, allowing for easy interaction within the blockchain ecosystem.

Deciding whether to use the Bybit Cloud Wallet depends upon your specific needs and preferences. If you value security, convenience and the ability to manage multiple cryptocurrencies within a single platform, Bybit Cloud Wallet is a strong choice. However, if you prefer having full control over your private keys and assets, a 

 might be a better option. Consider your priorities and the level of control you desire over your digital assets when making your decision.

Bybit Cloud Wallet offers a secure and convenient way to manage cryptocurrency assets without the complexity of handling private keys. Its seamless integration with Bybit Web3 services makes it ideal for beginners and experienced users alike, enabling easy interactions with DApps and DeFi platforms. While Bybit Cloud Wallet offers strong security and user-friendliness, the risks of using a custodial wallet remain a consideration for those seeking full control over their assets.

bybit cloud wallet.png

Bybit Cloud Wallet: Seamless Crypto Management for Everyone

USUAL introduces USD0, a stablecoin backed by U.S. Treasury Bills, offering transparency, security, and revenue sharing through its governance token, USUAL.

More than a decade ago, in mid-2014, the first 

 arrived on the stage of the crypto market. These cryptocurrencies were designed to provide stability in the typically volatile world of crypto, and to serve as a bridge between the traditional finance (TradFi) and 

 (DeFi) ecosystems. At the core of their functionality is a mechanism that maintains a close peg to some traditionally valued asset, be it the U.S. dollar, euro or 

Stablecoins have proved to be tremendously popular, with the leading asset in this niche, 

 (USDT), routinely attracting higher trading volumes than any other cryptocurrency — including the mighty Bitcoin. The second most popular stablecoin in the market, 

 (USDC), also enjoys multibillion-dollar daily trading volumes, and ranks among the top 10 cryptocurrencies by market cap.

Despite their popularity, many leading stablecoins — including the dominant USDT and USDC pair — have opaque collateral management mechanisms, are lacking in transparency, don't distribute revenues to the wider user community and are highly centralized in terms of control.

Usual (USUAL) is a DeFi solution launched on the 

 (ETH) blockchain that aims to tackle these deficiencies of traditional stablecoins by offering a 

 (RWA)–backed stablecoin and redistributing protocol revenues among its users. The platform's primary stablecoin — USD0 — is backed by collateral invested mainly in short-term U.S. Treasury Bills; maintains a tight peg to the greenback via these secure investments; has a fully transparent reserve verification system; and opens up additional yield opportunities across a variety of external DeFi protocols via a 

 (USUAL) is an Ethereum-based DeFi platform that offers an RWA-backed, USD-pegged transparent stablecoin, USD0, and distributes protocol revenues among its user community. 

USD0 is backed by collateral invested in RWAs, primarily in short-term U.S. Treasury Bills. The short-term, highly liquid and secure nature of these government-issued assets ensures that USD0's peg to the U.S. dollar isn't likely to be compromised.

Usual has partnered with Hashnote, a Florida-based regulated provider of digital and tokenized fund products, to facilitate secure investment in U.S. Treasury Bills and associated products.

Usual's USD0 is a unique stablecoin product, distinct from the dominant assets in this niche, 

 and USDC. While these cryptocurrencies also maintain fiat reserves to back their value, they’re controlled by centralized corporate entities, and their USD reserves are exposed to the traditional banking system, with poorly known levels of risk associated with them.

, whose values aren’t backed by fiat assets, and which are highly dependent upon underlying protocols’ activity to maintain their pegs. In many cases, these algorithmic coins lose their pegs and stability when the underlying lending or borrowing activities on their protocols are manipulated by 

 or become subject to panic-driven runs. The most notorious example was the 2022 

Usual’s platform also offers a liquid staking version of USD0, USD0++, which can be used throughout the DeFi ecosystem for additional yields. It has partnered with several Ethereum DeFi protocols to expand the universe of platforms where USD0++ can be utilized, including 

Usual also has another distinct feature: the protocol aims to distribute future revenue among its users, specifically among holders of its upcoming USUAL 

The platform was developed by the France-based Usual Labs, a blockchain development outfit co-founded by Adli Takkal Bataille, Hugo Sallé de Chou and former French parliament member Pierre Person. Usual launched the USD0 stablecoin in mid-2024. In late November 2024, the platform introduced the USUAL governance token, set to be launched sometime in mid-December 2024.

The introduction of the USD0 stablecoin is a potentially paradigm-changing event for the crypto market. This innovative asset adopts many of the advantages of fiat-backed stablecoins, but also resolves many associated issues. Usual Labs has targeted several goals with the advent of USD0 and its unique working mechanism.

One key aim is to change the way that profits from decentralized stablecoin operations are shared. Usual's revenue is to be shared with the user community — namely, the holders of the USUAL token. All the revenue generated from the platform's operations flows to its treasury. USUAL holders are in charge of this revenue, making them eligible to decide on the actual distribution. In essence, owning USUAL entitles you to a share of potentially 100% of revenue generated by the platform.

This starkly contrasts with the way that other fiat-backed stablecoins, notably USDT and USDC, operate. All the revenues generated from these stablecoins are appropriated by their respective founding companies — Tether Limited for USDT, and Circle Internet Financial Limited for USDC. While the risks from the operations of these assets are externalized and shared with holders of the stablecoins, the revenues are internalized and scooped up by Tether and Circle.

Another aim of the Usual project is to bring transparency to the management of collateral that backs the USD0 stablecoin. As a decentralized protocol, Usual provides the transparency of collateral funds' allocation. Again, this contrasts with the opaque nature of the way that USD collateral for some stablecoins is managed. Tether's USDT has particularly 

 in the crypto investor community, as the company has never conducted a full-scale audit for its vast claimed dollar reserves.

Another aim of Usual is to provide a stablecoin that’s completely secure from exposure to the traditional, fractional reserve-based banking system. Some crypto investors have derided the fractional reserve system, whereby only a small proportion of client liabilities are actually held at any given time by banks. Projects like USDT and USDC rely heavily on the traditional banking system, which backs their U.S. dollar reserves. These banks naturally rely on fractional reserves that, at least in the opinion of the most risk-averse investors, exposes them to 

In contrast, USD0 is backed by short-term U.S. Treasury Bills, an asset class that’s fully backed by the U.S. government's pledge. These are considered among the safest assets in the world of finance, as the U.S. government has never yet defaulted on its payment obligations. Unlike USD deposits in banks, USD0's Treasury Bill–based collateral isn't exposed to the risks of the fractional reserve system. As such, the coin's collateral is based on a government-backed asset, providing a level of security that most fiat-based stablecoins in the market are unlikely to match.

Usual uses a three-token model to power its operations and services. There's the fiat-backed USD0 stablecoin, which is protected by Treasury Bill collateral. The second asset is the USD0++ LST, a derivative of USD0 issued upon staking the latter. And there’s the USUAL governance token that grants holders the right to participate in decision-making on the protocol's rules and future direction.

The Usual protocol provides two ways to mint the USD0 stablecoin:

:This is normally done by investing in the USYC fund and using it as collateral, then depositing it into the mint engine to mint USD0. USYC is an on-chain representation of the Short Duration Yield Fund (SDYF) provided by Hashnote, a regulated provider of tokenized fund products. USYC/SDYF is based mainly on U.S. Treasury Bills with short-term maturity.

:You can also mint USD0 indirectly on a 1:1 basis by supplying the USDC stablecoin as collateral.

Redeeming the stablecoin is also possible in two ways — directly through the protocol, or via the secondary market. When using direct redeeming, you simply withdraw your RWA collateral using the protocol's interface. Alternatively, you can sell USD0 for USDC or USDT via a secondary market platform, such as 

 (CRV), a popular DeFi protocol that specializes in stablecoin assets.

USD0++ is an LST representation of USD0. When you stake USD0 on the platform, you’re issued USD0++, which is fully composable and can be used on various Ethereum-linked protocols to earn additional yield. You can lock USD0 to get issued USD0++ for four years. However, you’re also free to unstake at any time.

Staking rewards from locking USD0 to get USD0++ are paid in USUAL tokens. Usual's model rewards long-term staking commitments, as users are encouraged to stake for at least six months — this is the minimum period of staking required to qualify for what the protocol calls the 

 (BIG). BIG essentially refers to a guaranteed yield from native staking of the underlying RWAs on the Usual protocol. When the period concludes, the staker can choose to collect the yield in either USUAL or USD0.

Yields start accumulating from day one of staking. Although users are free to unstake at any time, those who do so before the six-month minimum period will forfeit accumulated rewards.

USUAL is the Usual protocol's governance crypto token. It was unveiled on Nov 19, 2024, and is currently in pre-market mode only. It's expected that USUAL's public launch will occur in the near future. As USUAL is a community-first token, 90% of the tokens are distributed to the community with only 10% allocated to insiders (team and investors).

Usual feeds its revenues into its protocol's treasury, which is controlled by the USUAL holder community. As such, USUAL holders own 100% of the platform, a significant departure from the system used by many other stablecoin issuers, whereby a corporate entity earns all or the majority of the profits. 

Additionally, Usual is designed such that its protocol will incentivize early adopters and long-term holders. As the TVL of USD0 increases, Usual will generate more revenue. The emission rate of USUAL is also disinflationary, gradually reducing as the TVL of USD0 rises and enhancing the scarcity of the token, which will subsequently lead to a boost in its value.

At the initial stages of the platform's market presence, Usual Labs is largely responsible for governance decision-making. However, this function will be taken over by USUAL holders, likely in the form of a 

Although called a governance token, USUAL has additional functionalities beyond supporting the protocol's governance processes. It’s also used to distribute yields from staking ( as discussed in the section above on USD0++). Rewards from the protocol's loyalty point campaigns are also airdropped in USUAL. 

In addition, USUAL can be staked for additional governance rights and rewards. USUAL stakers will receive 

, from which they can earn a portion of USUAL emissions and 50% of the fees generated from people unstaking their Usual assets (USUAL or USD0++).

USUAL's maximum and total token supply are specified at 4 billion. The initial circulating supply during the early days of the token's pre-market trading is close to 500 million as of Dec 2, 2024.

The Usual protocol ran a points-based reward program from July through the last week of November 2024. Called the 

, it let early users accumulate points by acting as liquidity providers before the protocol's full public launch phase. The accumulated Pills points will determine users' eligibility for a USUAL airdrop, slated for mid-December.

The airdrop will allocate 8.5% of the token's supply to eligible users — the more Pills points you've earned, the more USUAL tokens you’ll receive.

During the token's pre-market trading stage, Bybit is one of the rare platforms that’s allowing you to access it. As of Dec 2, 2024, 

 on Bybit's Pre-Market Perpetuals Trading platform as a 

 lets you invest in a variety of upcoming cryptocurrencies via USDT-based perpetual futures contracts before these assets are listed on the main spot or derivatives markets. Using this platform, you can access a range of promising new crypto assets before they become publicly available. There are two main limits enforced by Perpetual Pre-Market — the position size cannot exceed $250,000, and leverage is permitted up to 5x.

Stablecoins are one of the oldest asset types in the crypto industry, while RWAs are a much newer trend that’s growing increasingly popular among investors. The Usual project has decided to marry these two areas, providing an RWA-backed, USD-pegged stablecoin — USD0. The concept of using an RWA for stablecoin collateral may not be totally unique. However, using a highly secure asset such as U.S. Treasury Bills with short-term maturity is something that truly distinguishes the Usual protocol.

Distributing revenue among the governance token holder community is also a refreshing innovation in a niche dominated by providers who largely internalize protocol incomes. Currently, the stablecoin market is heavily dominated by USDT and USDC, with 

 (FDUSD) also recently posting impressive, multibillion-dollar daily trading volumes. All three of these stablecoin issuers lack a mechanism to share revenue with their users. A major stablecoin provider that utilizes a democratized way of sharing protocol revenues with the user community is a deserted area, one that the Usual platform is keen to claim.

With all these merits of the Usual protocol, the upcoming USUAL token is a promising and potentially rewarding asset. Investors interested in stablecoins grounded in highly secure TradFi collateral might want to take a closer look at these new arrivals on the block — the USD0 stablecoin and the USUAL governance token.

Intermediate

usual crypto.png

Usual (USUAL): A New Model of Collateralized Stablecoin Ownership

Crypto

Keeping your assets safe is of paramount importance to anybody who owns crypto. In this article, we'll go through the steps you should take to do just that.

The decentralized cryptocurrency model largely transfers autonomy and power to users, which is why many users are drawn to it. However, with that power comes the responsibility of maintaining the privacy of your security keys. Effectively, by having complete ownership of your funds, you become solely responsible for their security.

As more crypto hacks happen periodically, it's common for traders and investors alike to ask how to keep crypto safe. This article will explore various best practices for practical user security.

Blockchain is the underlying technology that keeps crypto secure, due to its decentralized and cryptographic nature. Since decentralization means there isn’t a single point of failure or control, it’s unlikely that hackers can compromise a blockchain network without exhausting their resources. In addition, all cryptocurrency transactions are recorded in blocks and “chained together” in a publicly recorded ledger, so it’s relatively challenging for malicious actors to attempt to alter past transactions without altering any subsequent blocks.

In addition, public key cryptography adds another layer of security, ensuring only a rightful owner with the private key can access or authorize a transaction, and pseudonymous crypto transactions help preserve anonymity.

Still, cryptocurrency has intrinsic value and can be stolen and diverted to new owners instantly and irrevocably, creating a considerable incentive for hackers to target users who don’t take their security seriously. In fact, 

 crypto investors lost nearly $4 billion to crypto hackers and scammers in 2022. Like any investment or financial asset, cryptocurrency comes with its own set of risks and considerations. 

While cryptocurrencies have gained in both popularity and adoption in recent years, it's essential to be aware of the potential risks before investing, and to consider if they’re suitable for your specific circumstances.

All financial assets are susceptible to market volatility, due to their inherently speculative nature, in addition to regulatory oversight and changing political landscapes. The security of crypto may also appear as a double-edged sword for traders due to its irreversible nature. Let's say you send crypto funds to the wrong address, or fall victim to a scam. It may be challenging (if not impossible) to recover your lost funds. In addition, the technical complexity may be challenging for those unfamiliar with blockchain technology and digital assets.

Cold Wallet vs. Hot Wallet vs. Exchange Wallet vs. Web3 Wallet

A cryptocurrency wallet allows users to store, send and receive digital assets, such as Bitcoin, Ethereum or other cryptocurrencies (known as 

). These wallets are secured by private keys, so that only the wallet owner can access, control and manage the assets in the wallet by authorizing transactions.

 to suit different purposes. A cold (offline) wallet isn’t connected to the internet, and is typically in the form of a hardware wallet or paper wallet. These types of wallets are the most secure option for storing cryptocurrencies, as the private keys aren’t exposed to potential online threats and unauthorized access. The trade-off to using an offline wallet is that it requires careful handling to avoid permanent damages, such as accidentally throwing out the offline wallet or misplaced private keys.

On the other hand, a hot (online) wallet is connected to the internet and takes different forms, such as a web-based, desktop or mobile wallet. Compared to an offline wallet, hot wallets are more accessible but at the expense of heightened security infiltration.

An exchange wallet is typically a custodial wallet provided by a crypto exchange to users whenever they create an account on the platform. These custodial wallets are assigned with a unique wallet address to a user, so that they may deposit and withdraw funds. In other words, users entrust their funds to be saved in these wallets, and the providers hold and manage the private keys on behalf of the users.

 (or decentralized) wallet is one of the latest additions to the crypto space, designed specifically for users to interact with decentralized applications (

) on the Ethereum blockchain and other web3-compatible blockchains. These wallets are usually integrated directly into a web browser, allowing seamless interaction with blockchain-based DApps without using external plug-ins.

Ultimately, choosing a crypto wallet depends upon your specific needs and preferences.

Regardless of the type of wallet you choose, remember to practice proper security measures, such as enabling two-factor authentication (

), using strong passwords and keeping backup copies of your wallet's private keys or 

What Happens If I Lose My Wallet’s Private Keys?

As much as we want to keep our wallets safe from prying eyes, accidents are inevitable, regardless of how careful we are. And losing access to your wallet's private keys can have serious consequences, such as permanent loss of funds and access to your account. For example, losing your private keys without a backup means you’ll no longer be able to access the wallet that stores your crypto. These funds may be stuck on an exchange or in a wallet, depending upon the type of wallet you use.

The first thing we’re likely to do when we lose access to our private keys is to look for a backup. However, cryptocurrencies operate on decentralized networks, so there’s no central authority that can help you recover your lost private keys or reset passwords for you. Hence, it’s always advisable to keep a record of your private keys or seed phrases as a backup. 

In rare cases, there are specialized companies that can help you retrieve lost private keys when there’s sufficient information and verification to recover them.

Remember that in the world of cryptocurrency, you alone are responsible for safeguarding your private keys. Being proactive in protecting and securely managing your keys can prevent the distressing experience of losing access to your valuable digital assets.

10 Best Security Practices for Cryptocurrency Users

1. Change your perception of cybersecurity

One steady truth throughout the ages is that we pay fees for the security of the funds in our bank accounts (though “security fees” will never appear on bank statements). Unlike traditional centralized banking financial institutions, decentralized systems such as cryptocurrencies transfer the control and responsibility of security to individual users.

With cryptocurrency, even when we might be excited to complete our first cryptocurrency transaction, we shouldn’t forget there are no longer any security service providers like the ones banks have, and there may not even be regulations in place to provide any protection (depending upon the national or regional regulations in the holder’s location). Therefore, it’s crucial that cryptocurrency users have rigorous security practices in place, such as buying simple and easy-to-use hardware security devices, mastering security protocols and implementing best security best practices, such as those recommended in this article.

2. Choose a trusted crypto trading platform with reliable security incident compensation or insurance mechanisms

The most apparent risk faced by cryptocurrency holders is the theft of coins. Assuming most individual users hold coins on cryptocurrency trading platforms, choosing a trusted platform is of the utmost importance.

There is no benchmark for international security standards or third-party agency ratings for trading platforms in the cryptocurrency industry. Therefore, it’s necessary to properly understand a platform’s security mechanisms before you register, such as the company’s current security investment. Also, it’s important to check if the platform offers any user account security insurance or guaranteed compensation for security breaches.

3. Always stay informed about anti-phishing practices and scams by completing the safety test

Phishing is the most common scam. To avoid being viewed as a “fish” in the eyes of perpetrators, make sure that you’re equipped with knowledge about common “bait-the-hook” techniques.

One example of a phishing email is when a URL that invites you to click on a link is a fake domain name that’s similar to a trusted one — e.g. 

). It could even be a clone website of a commonly used trading platform, such as a phony MetaMask wallet website that “looks real” and tricks you into entering your seed phrase so scammers can instantaneously pick your digital pocket, draining your funds.

, around 65% of organizations worldwide experienced some kind of phishing attack in 2022. If your email has been compromised or if you previously had a compromised account, then phishing emails will be carefully designed to target you. According to statistics, around 96% of phishing attacks come from email.

A reliable method for crypto holders is to complete an anti-phishing security test. The Google online test is a good benchmark (you can take the test 

 It comprises a total of eight questions and requires just 10 minutes of your time. If your score falls short, that means you need to increase your security awareness and try again.

Other common phishing methods include sending gifts or bonuses through fake official social media and community channels, posing as customer support personnel or cloning trading platform CEOs' social accounts. 

4. Always use two-factor authentication (2FA) 

The good news is that most cryptocurrency trading platforms, including 

 or other wallet service providers, require you to use two-factor authentication, such as Google Authenticator or Authy. The trade-off is the hassle of using these tools.

2FA is an additional layer of security used to ensure that only legitimate owners can access their accounts. This “extra” layer means that, in addition to standard passwords and PINs, a platform’s security will also verify a second layer (hence, two-factor). This second factor can be something you own, such as the Google Authenticator app installed on a mobile phone that you carry, or a one-time password sent to your mobile phone via SMS or hardware tokens. These features are used on top of your existing mobile security features (such as fingerprints, iris and/or facial scanners, etc.).

When you install Google Authenticator directly on your computer, you give up an extra layer of protection every time you copy the verification code instead of using a smartphone app. It’s very likely that once a hacker (remote) or a person who has physical access to your computer gains access, your existing layers of protection will be penetrated.

At Bybit, users can bind their accounts with Google Authenticator. The best time to bind your Google Authenticator is immediately after your first login to your Bybit account.

 to learn how to bind your Bybit account to Google Authenticator.

5. Use strong passwords independent of other funds accounts

It’s always the most economical choice for a hacker to try to target a cryptocurrency account with a user’s compromised account and password. Knowing this, a savvy cryptocurrency holder will take the following preventive measures.

First, register a new email account for the cryptocurrency platform to circumvent any previous digital footprint that would allow anyone to hack or clone your account successfully. Secondly, don’t use weak or common passwords.

, a blockchain certificate company, 65% of the Know Your Client (

) verification processes in the world’s top 120 cryptocurrency trading platforms are weak. This means that once your crypto account password has been cracked, a hacker can easily obtain your crypto assets on a trading platform and transfer them to their wallet address, thus leaving little to no chance of retrieving your assets. 

6. Divide assets 70-20-10 to diversify your risk

In addition to trading on platforms using your accounts and cryptocurrencies, it’s common for traders to store crypto assets offline, as one would with cash in a safe. Personal crypto assets — whether in hard wallets, physical storage, desktop wallets or mobile APP wallets — are best allocated to cold, warm and hot wallets in the ratios of 70%, 20% and 10%, respectively, depending upon your individual needs and preferences.

Would you carry your entire net worth around in your wallet?

Most people would consider that reckless — and yet, cryptocurrency users often keep all their crypto in a single wallet. Instead, users should spread the risk among multiple and diverse cryptocurrency storage wallets. Prudent users will keep only a small fraction, perhaps less than 5%, of their cryptocurrency in an online or mobile wallet as “pocket change.” The rest should be split between a few different storage mechanisms, such as a desktop wallet and offline (cold storage).

7. Use a physical wallet that represents future trends

Because most users are far more comfortable with physical security than with digital security, a highly effective method for protecting your cryptocurrency is to store it in a physical form. Cryptocurrency keys are nothing more than long numbers, which means they can be stored physically, printed on paper or etched on a metal coin.

Securing one’s keys becomes as simple as physically securing a printed copy of them. A set of cryptocurrency keys printed on paper is called a “paper wallet,” and many free tools can be used to create them. For example, I would keep most of my cryptocurrency (99% or more) stored in paper wallets, encrypted with BIP-38, with multiple copies locked in safes. Keeping cryptocurrency offline (cold storage) is one of the most effective security techniques.

A cold storage system is one where the keys are generated on an offline system (one never connected to the internet) and stored offline on paper or on a physical device, such as a USB memory stick.

How to Keep Your Bitcoin and Cryptocurrency Safe (Updated)

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards