How to avoid impermanent loss? Liquidity providers cannot avoid impermanent loss completely. However, they can use some measures to mitigate this risk such as using stablecoin pairs and avoiding volatile pairs. One strategy to avoid temporary loss is to choose stablecoin pairs that offer the best bet against IL since their value does not move much; they also have fewer arbitrage opportunities, lowering the risks. Liquidity providers using stablecoin pairs, on the other hand, are unable to gain from the bullish crypto market. Choose pairs that do not expose liquidity to market instability and temporary loss rather than cryptos with …

Paolo Ardoino, the chief technology officer of Tether and Bitfinex, is confident that Tether will preserve its status as the most used stablecoin, despite the rapid growth of competitors such as USD Coin (USDC). “If you see the volumes of Tether compared to the rest of stablecoins, they are insanely higher. They are even 10 times higher on a bad day,” he pointed out. According to a report from Arcane Research, USDC, the second-largest stablecoin, has been growing at an impressive rate over the last year and could soon overtake Tether in terms of market cap. Ardoino is not worried …

Cryptocurrencies are well-known for being volatile assets, which means that experienced traders have plenty of opportunities in the space. Investors can expect to be taken on a wild ride if they plan on holding for a long time. Stablecoins, a class of cryptocurrencies that offers investors price stability pegged to the value of fiat currencies, offer investors a safe haven when market turbulence hits but may represent missed opportunities over time. Speaking to Cointelegraph, several experts have stated that retail investors should approach cryptocurrencies with a “pay yourself first” attitude and that an allocation of up to 5% in crypto …

As one of a number of Cointelegraph representatives attending the Paris Blockchain Week Summit (PBWS) at the historic Palais Brongniart — a neoclassical building previously serving as the headquarters for the Parisian stock exchange from 1826 to 1987 — European news reporter, Joe Hall sat down for an in-depth interview with the Chief technology officer of Bitfinex and Tether, Paolo Ardoino. Previously ranked 88th in Cointelegraph’s prestigious Top 100 2021 for his influential impact on the growth of the decentralized finance (DeFi) ecosystem, Ardoino spoke on an array of topics including the adoption of Bitcoin and Tether as legal tender …

On Monday, Bitcoin (BTC) dropped to $40,500, reaching a crucial level that erased the gains from the previous three weeks when the price peaked at $48,200 on March 28. According to analysts, the United States Federal Reserve balance sheet reductions are adding pressure to stocks and risk assets, with Bitcoin standing to lose appeal. Decentrader co-founder filbfilb agreed with these powerful headwinds by arguing that the Fed's action could influence the BTC price trend "for months to come." Bitcoin reacted unfavorably to a resurgent dollar, with the U.S. dollar currency index (DXY) returning above 100 for the first time since …

The ongoing conflict in Ukraine has become a stress test for crypto in many tangible ways. Digital assets have emerged as an effective means of directly supporting humanitarian efforts, and the crypto industry, despite enormous pressure, has largely proved itself a mature community — one ready to comply with international policies without compromising the core principles of decentralization. But there is another vital role that crypto has filled during these tragic events: It is becoming more and more familiar to those who have found themselves cut off from the payment systems that had once seemed unfailing. Traditional financial infrastructures don’t …

More than 80% of central banks are interested in launching a Central Bank Digital Currency (CBDC) or have already done so according to research conducted by accounting firm PwC. The second annual Global CBDC Index report released on Monday, April 4, measures a central bank's level of maturity in deploying its own digital currency. The report also included an overview of stablecoins for the first time. Haydn Jones, Blockchain and Crypto Specialist at PwC U.K. stated in the report that “over 80% of central banks are considering launching a CBDC or have already done so.” The report ranks both retail …

As Bitcoin (BTC) finally broke out of the $46,000 resistance on March 27, traders were quick to conclude that the bearish trend was gone for good. Even as the price hit its highest level in 84 days, derivatives metrics and Asia’s Tether premium still show a lack of bullish sentiment. While analysts will struggle to find a rationale for the modest 5.8% 24-hour gain that pushed Bitcoin above $48,500, we still have to account for the daily 3.8% average volatility. For instance, over the past 12 months, BTC presented a daily swing higher than 5.8% in 44 instances, ranging from …

There’s a poetic justice to scammers getting beat at their own game. A cryptocurrency scammer met their match when trying to trick Bitcoiner, Felix Crisan into sending them Tether (USDT). The scammer tried to impersonate John Carvalho, the CEO of Synonym, a Bitcoiner Cointelegraph regularly cites. The scammer, who we will call fake John from now on, wanted Crisan to send USDT, but Crisan–who’s been learning and getting involved with Bitcoin (BTC) for almost a decade–had other ideas: Today I've convinced a scammer to install a Lightning Network wallet. BTW @BitcoinErrorLog there's someone impersonating you on Telegram pic.twitter.com/Qd0I9pAney — felix …

Cryptocurrencies failed to break the 42-day long downtrend after the $1.95 trillion capitalization resistance was rejected on March 20. Even though Bitcoin (BTC) gained a modest 3.7% over the past seven days, altcoins presented a robust rally. Crypto markets' aggregate capitalization showed a 6.2% increase to $1.92 trillion between March 14-21. Such performance was positively impacted by Ether's (ETH) 14% gains, Cardano (ADA) increasing 13%, and Solana (SOL) gaining 10%. While those assets were not the biggest weekly gains among the top-80 coins, Ether may have fueled investors' expectations after Glassnode's on-chain data showed that ETH balances on crypto exchanges …

After Bitcoin (BTC) faced its third consecutive rejection, investors became more confident in adding altcoin positions. For the leading cryptocurrency, the path to $50,000 appears more challenging than previously expected. According to Euronews Next, on March 14, the European Union rejected a proposed rule that could have banned the energy-intensive proof-of-work (PoW) mining algorithm used by Bitcoin and other cryptocurrencies. Several EU parliamentarians have been pushing to ban PoW mining over energy concerns. In terms of performance, the aggregate market capitalization of all cryptos was relatively flat over the past seven days, registering a modest 0.4% gain to $1.77 trillion. …

The market capitalization of gold-backed crypto tokens increased by 60% in 2022 to surpass $1 billion for the first time in history, according to Arcane Research in its latest weekly report. Gold shines, Bitcoin disappoints In 2022, investors have been rushing to the perceived safety of gold-backed crypto assets, whose value is pegged to the price of gold. Namely, PAX Gold (PAXG), Tether Gold (XAUT), and similar precious metal-backed digital assets have been climbing in value as investors "diversify inflation bets" within the crypto sector, explains Arcane Research. PAXG is also outperforming Bitcoin (BTC) this year, as shown in the …