Wybo Wiersma – a 40-year-old Oxford University graduate – has been sentenced to four and a half years in prison after scamming over $2 million in crypto from unsuspecting victims. Following his arrest in 2019, the Dutchman was extradited from the Netherlands back to the United Kingdom (UK) in 2021. Following a five-year investigation by the South East Regional Organised Crime Unit (SEROCU), he pled guilty on January 26 to the Oxford Crown Court. A Five-Year Investigation As reported by…
What are Custodial Wallets?
A crypto custodial wallet is a type of digital wallet that is used to store and manage cryptocurrencies. It is called a “custodial” wallet because the wallet provider has custody of the private keys associated with the wallet. This means that the user cannot control their cryptocurrency and must trust the wallet provider to manage their assets securely.
To use a custodial wallet, the user typically creates an account with the wallet provider and transfers their cryptocurrency to the wallet. The wallet provider then stores the cryptocurrency on the user’s behalf and provides an interface through which they can view their balance and perform transactions. Users can also set up security measures, such as two-factor authentication, to protect their accounts.
Risks to Using a Custodial Wallet
There are several risks to using a custodial wallet:
- Loss of control: The wallet provider has custody of the private keys, so the user cannot control their cryptocurrency. If the wallet provider experiences a security breach or goes out of business, the user may lose access to their cryptocurrency.
- Security risks: Custodial wallets are a central point of failure, as they hold private keys for many users. If the wallet provider’s security is compromised, the attackers may be able to access the private keys for all of the users’ cryptocurrency.
- Risk of fraud: Some custodial wallet providers may be fraudulent and not securely store the user’s cryptocurrency.
- Risk of censorship: Custodial wallet providers may be subject to government regulation or policies restricting the types of transactions that users can make. This can limit users’ freedom to use their cryptocurrency as they see fit.
Custodial Wallet Types
There are several different categories of custodial wallets:
- Online wallets: These are web-based wallets that can be accessed from any internet-connected device. They are often provided by exchanges and are convenient for quick transactions. Still, they are generally less secure than other custodial wallets because the user’s private keys are stored on the exchange’s servers.
- Desktop and mobile wallets are software wallets installed on a user’s computer or mobile divide and are only accessible from that device. As a result, they are vulnerable to malware and other online threats.
Custodial wallets are generally considered less secure than non-custodial wallets, as the user does not have full control over their private keys and must trust the wallet provider to keep their assets safe. However, they can be a convenient and user-friendly option for those new to cryptocurrency who do not want to manage their private keys.
What Is Crypto Historical Data and How to Use It in Trading
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How to Effectively Predict Crypto Prices
Predicting crypto prices is a complex task and requires a combination of technical analysis, fundamental analysis, and market sentiment. Here's a guide to help you effectively predict crypto prices: Technical Analysis: This involves studying past market data, including price and volume trends, to identify patterns and predict future price movements. Use charting tools, such as candlestick charts, to visually represent this data. Fundamental Analysis: This involves analyzing the underlying factors that may impact the value of a cryptocurrency, such as…
Guide to Value a Cryptocurrency
Valuing a cryptocurrency can be difficult and subjective, as many factors contribute to its worth. However, here are some steps and considerations for valuing a cryptocurrency: Market capitalization: This is the total value of the cryptocurrency in circulation. It is calculated by multiplying the total number of coins by the current market price. Adoption and usage: The more people use cryptocurrency, the more valuable it is likely to become. This includes individuals and businesses using it for transactions or as…
The Best Crypto Portfolio Trackers (Coin Trackers)
Crypto portfolio trackers are apps or websites that allow users to monitor their cryptocurrency holdings across multiple exchanges and wallets in one place. They connect to users' exchange and wallet accounts through APIs (Application Programming Interfaces) and automatically track the user's cryptocurrency holdings and transactions. The tracker updates in real-time and provides an overview of the user's total portfolio value, asset allocation, and returns. This allows users to track their investment performance and make informed decisions easily. What Should The…
An Overview of Different Cryptocurrency Scams
Cryptocurrency scams are fraudulent schemes that are becoming increasingly common as the popularity of cryptocurrencies continues to grow. They can take many forms and are often designed to appear legitimate investment opportunities or exchanges. Unfortunately, these scams can cause significant financial losses for individuals and harm the reputation of the cryptocurrency industry as a whole. It is crucial for anyone considering investing in cryptocurrencies to be aware of the various types of scams and to take steps to protect themselves.…
What Are Crypto Data Aggregators?
Crypto data aggregators gather data from multiple sources to provide comprehensive and real-time information about the cryptocurrency market. They pull data from various exchanges, trading platforms, and other sources to centralize the information and present it in a user-friendly format. The data includes cryptocurrency prices, trading volume, market capitalization, news, and other relevant information. Crypto data aggregators use algorithms to clean, process, and normalize the data to ensure accuracy and consistency across multiple sources. The information is then presented in…
What Is CoinGecko?
CoinGecko is a cryptocurrency data aggregator and tracking platform. It provides information and insights on the cryptocurrency market, including price, volume, trading activity, developer activity, and community growth. How CoinGecko Works Data Aggregation: CoinGecko collects crypto data from various cryptocurrency exchanges, wallets, and blockchains to create a comprehensive database of cryptocurrency information. Calculation of Metrics: CoinGecko calculates several metrics, such as market capitalization, trading volume, liquidity, and community growth, to provide a comprehensive overview of the cryptocurrency market. Display of…
What Is CoinMarketCap (CMC)?
CoinMarketCap (CMC) is a website that provides information about the cryptocurrency market and tracks the capitalization of various cryptocurrencies. It was founded in 2013 and has become one of the most popular cryptocurrency data providers. CMC aggregates information about the prices, volume, and market capitalization of cryptocurrencies from various exchanges and calculates the average value. Furthermore, the website displays this information in real-time, giving users a comprehensive overview of the cryptocurrency market. CMC tracks over 22,000 cryptocurrencies, including Bitcoin, Ethereum,…
What Are Crypto Pyramid Schemes?
A crypto pyramid scheme is a fraudulent investment scheme where returns are paid to existing investors from funds contributed by new investors. It's called a "pyramid" because it typically has many new entrants at the bottom, with each layer representing fewer investors. Example: John starts a pyramid scheme and invites five friends to invest 1 Bitcoin each. John promises to return 2 Bitcoins to each participant in a month. John needs 10 Bitcoins to fulfill his promise, so he invites…