Explore how mETH Protocol’s COOK token enhances governance, empowering users to shape Mantle’s leading Ethereum Layer 2 liquid staking platform.

Mantle Network (MNT) is one of the most innovative 

 (ETH) blockchain. In late 2023, the Mantle project debuted its mETH 

 protocol, which quickly became one of the most popular platforms for ETH staking and restaking. For nearly a year since its launch, the mETH protocol operated without a 

 of its own. The protocol's governance was largely influenced by the Mantle project and holders of its MNT token. However, the plans for mETH to have its own dedicated governance token were discussed as early as around the protocol's launch date.

Fast-forward to late October 2024, and the mETH protocol welcomed its governance asset — the COOK token. As of early November 2024, COOK is already available for eligible users to claim via several channels, including Bybit.

Launched in December 2023, mETH — previously known as Mantle LSP — is the largest 

 (DeFi) protocol on the Mantle L2 chain dedicated to Ethereum liquid staking and restaking. Users who lock their Ether (ETH) funds on the platform are issued Mantle Staked Ether (mETH) tokens, the primary liquid staking token (LST) of the protocol. mETH works as your deposit receipt, and accumulates the rewards accrued from ETH staking. The value of each mETH token is made up of the original principal amount plus the rewards earned.

 services. Users can use the cmETH liquid restaking token (LRT), which is exchangeable with mETH at a ratio of 1:1, to earn additional yields across a number of DeFi protocols within the wider Ethereum ecosystem, all while simultaneously earning their base liquid staking rewards through mETH.

Another cryptocurrency on mETH is the recently launched COOK — mETH Protocol's governance token.

 (EVM)–compatible scaling solution. Like many other popular L2 networks, the key aim of the Mantle project is to provide a more scalable and affordable alternative to direct transacting on Ethereum’s 

. Mantle was launched in July 2023. The mETH protocol, which was introduced five months later, is the key project among Mantle's ecosystem initiatives. It's now by far the most dominant DeFi protocol on Mantle, and is one of the leading restaking protocols in the industry, with a 

 (TVL) of nearly $1.25 billion (as of Nov 6, 2024).

Mantle offers developers a flexible environment in which to launch solutions featuring high security, great scalability and low costs. It achieves these benefits thanks to a modular approach, with each layer — execution, consensus and data availability — controlled by different components and network actors.

Right around the launch time of the mETH protocol, the Mantle community discussed the potential of introducing a future governance token. On Oct 29, 2024, the COOK token was launched as mETH's governance cryptocurrency. Holders of COOK are eligible to vote on the strategic direction and changes to the protocol.

 crypto with a maximum and total supply of 5 billion. It's been deployed as an 

 asset on Ethereum’s Layer 1. Users who would like to move COOK to other blockchain platforms, including Mantle, can do so using a bridging solution provided by the LayerZero cross-chain interoperability protocol.

Of COOK's total supply of five billion, 15% is reserved for allocation via four ecosystem initiatives as follows:

COOK is available on Bybit's Spot market as a swap pair with USDT (

). You can also take advantage of Bybit's campaign dedicated to the token, running from Oct 29, 2024, 8AM UTC to Nov 12, 2024, 8:59AM UTC

The introduction of Mantle’s COOK token as mETH Protocol's governance asset is likely to boost community participation in the protocol. mETH is already a leading liquid staking solution within the wider Ethereum ecosystem, and the new COOK token may further boost the protocol's standing. For liquid staking enthusiasts, COOK represents a great way to acquire a say in mETH's development and overall direction.

Intermediate

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mETH Protocol (COOK): Transforming Governance in Liquid Staking on Mantle Network

Consumer crypto is an industry that involves incorporating blockchain technology into consumer goods. Learn more about it in this article.

 was first introduced, it was primarily a financial and technical concept. People initially believed that blockchains would be used for things like online payments and financial investments. While crypto certainly has financial and technological applications, there has also been a huge amount of growth in other sectors. Research shows that one of the leading uses for crypto is actually consumer goods. If you're interested in keeping up-to-date with crypto trends, explore this guide to learn about the rise of consumer crypto.

Consumer crypto is an industry that involves incorporating blockchain technology into consumer goods. Examples of consumer crypto can range from NFT-branded collections for sneakers to coffee rewards programs that use blockchain tokens.

Consumer crypto started back in 2014, when the crypto market first exploded, and began to really take off when the 

 (NFTs) in 2017. While most people were focused on trading on crypto exchanges, businesses began taking note of NFTs’ potential. Early examples of consumer crypto include Overstock's Bitcoin integration in 2014, and the first-ever fashion NFT in 2019.

 technology became the next big thing of 2021, there’s been an explosion in consumer crypto. While it was previously a notable incident whenever a company released their crypto or blockchain features, now it's more unusual to have a big brand that doesn't have some sort of crypto tie-in. Countless leading brands — including Coca-Cola, adidas and McDonald's — have some sort of consumer crypto feature. 

There are many factors contributing to this increase in consumer crypto:

What do all of these changes mean for the typical consumer? The rise of consumer crypto has allowed blockchain technology to be integrated into almost every aspect of daily life. People who were completely unaware of the cryptocurrency market 10 years ago now think nothing of playing a web3 game or using an app that stores their information as on-chain data. In addition to creating more profit-making opportunities for businesses, the seamless integration of consumer crypto has helped to increase crypto adoption. 

To get a better understanding of how consumer crypto has worked its way into everyday life, it's useful to take a look at some examples. The following examples demonstrate some ways that major brands have added blockchain technology to their products and services.

The Starbucks rewards program is a popular app that rewards people with points for purchasing beverages at Starbucks. Recently, the brand decided to 

 for its members. People can turn in their rewards points for NFTs or digital assets, and the convenient app lets them hold digital assets without needing a crypto wallet.

Of course, NFTs are one of the easiest ways to produce a consumer crypto. Countless food, fashion, technology and fitness companies have released their own lines of NFTs. Coca-Cola is a great example of how an NFT can become a great ad campaign: the company released a line of 

 on International Friendship Day 2021 that celebrated togetherness and friendship. The auction winner also received a Smeg refrigerator full of Cokes.

Another great example of a branded NFT launch is the Budweiser NFT collection. The novel thing about this collection was that Budweiser went out of its way to make purchasing and holding an NFT easy. Instead of needing a crypto wallet, users could go to a URL on the Budweiser site and buy an NFT with either cryptocurrency or a credit card. Currently, this collection has a 

Luxury fashion brand LK Bennett™ has launched a fun new program that offers cashback in the form of crypto. Customers who use the company's QR payment system receive 

 on every purchase. This program is part of a collaboration with Mode, an open-banking payments platform.

Sportswear/footwear giant adidas has chosen to combine cryptocurrency with physical products so its brand can appeal to both crypto fans and streetwear collectors. The company has offered an 

 package that released an exclusive hoodie alongside a blockchain address. This allowed consumers to obtain both a rare adidas item and a rare digital collectible.

Is consumer crypto likely to stick around? Industry experts predict huge growth in blockchain-based marketing and services. The blockchain business market is currently worth $6.63 billion, and is 

 by 2030. As cryptocurrency adoption increases, there will be more ways for the cryptocurrency industry to incorporate itself into other parts of daily life. The consumer crypto field is especially likely to see growth in these fields.

One of the main trends to watch for is an increase in companies that accept Bitcoin and other digital assets. As cryptocurrency becomes a valid form of investment, there’s less concern about it retaining its worth. More and more businesses are starting to allow crypto as a payment option, and there's a real demand for more crypto integration in online payments. 

While consumer crypto does include fields like marketing and customer retention, the area with the biggest growth is the entertainment industry. Web3 gaming alone is predicted to 

 worth of revenue by 2030. Now that consumers have begun to realize how entertaining blockchain gaming and social media are, there's a lot of interest in designing new crypto entertainment products.

Increasing numbers of businesses are discovering that the only thing stopping users from exploring crypto is technological insecurity. Many people see crypto wallets and other blockchain technology as confusing, which has kept them away from it. Businesses are beginning to solve this issue by focusing more on accessibility and ease of use. Modern consumer crypto is likely to lean away from high-tech mechanisms such as private crypto keys for crypto owners. Instead, more crypto companies are leaning toward account-driven technology, which users are familiar with from Web 2.0 design.

Consumer crypto provides an exciting new way to explore applications of crypto ownership. By turning crypto tokens into game items, consumer reward points and other features, brands can easily incorporate blockchain technology into their business. Ultimately, the rise of consumer crypto is a highly promising sign for the blockchain industry — and in addition to increasing crypto adoption, the added utility for coins may help to stem some issues with price volatility.

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A Look at Consumer Crypto Over the Years

Understand what Ripple is about including its functions, prospects, lawsuits, allegations, and wrap your head around what went wrong.

Imagine a world where cross-border transactions are completed in seconds, costs are minimal, and financial institutions are interconnected in a seamless payment network. Welcome to the world of the XRP Ledger (XRPL) and its native digital asset, XRP. As a frontrunner in revolutionizing the financial industry, understanding what , the XRPL and XRP are is essential for anyone interested in global payments and investments. Buckle up as we explore the intricacies of this game-changing technology.

XRP: The Digital Currency for Financial Institutions

XRP is a digital currency designed to enable fast, low-cost transactions and function as a bridge for exchanging various assets and currencies. Unlike Bitcoin, which was created to counter the influence of banks and governments, XRP aims to enhance the existing financial system by making it more efficient and cost-effective. As a result, many people are interested in how to buy XRP Ripple to take advantage of its potential benefits.

One of XRP’s primary purposes is to act as a mediator for currency exchange, providing a swift and efficient means of bridging two currencies without requiring an intermediary. Its unique advantage in processing speed and appeal to institutions positions XRP as a powerful bridge between traditional finance and 

Chris Larsen and Jed McCaleb founded Ripple Labs in 2012, and the company’s name over time has shortened to “Ripple”. Their mission was to connect banks, payment providers, and cryptocurrency exchanges, enabling real-time, cost-effective, global transactions. Ripple does this by using XRP in its payments product. 

Ripple has since achieved numerous milestones, such as the development of Ripple’s blockchain infrastructure in 2012 and the creation of RippleNet payment network.Pat White, CEO of Bitwave, has asserted that Ripple’s technology has been engineered as an alternative to the SWIFT banking system. This focus on institutional usage and partnerships has been the driving force behind Ripple’s success as a leading money transfer network.

Ripple Network: A New Era of Money Transfers

Designed to streamline cross-border transactions, the Ripple Payments Network aims to replace the outdated SWIFT system with a solution that is faster and more cost-effective. RippleNet, the payment network developed by Ripple, offers an end-to-end transfer process completed in minutes, with full visibility into the transaction and nearly instantaneous settlement. By leveraging blockchain technology, the Ripple Payments Network has successfully reduced the multiple layers of intermediaries required for 

 to function, making it a groundbreaking innovation in money transfers.

Ripple uses crypto and blockchain in its tech stack  to instantly settle transactions across borders, significantly improving the experience with legacy payment solutions.

 is also available through XRP, providing liquidity in cross-border transactions and eliminating the need for pre-funded accounts. This efficient and cost-effective solution is why Ripple Payments Network has become a leading money transfer network.

XRPL Transaction Protocol: Speed and Efficiency

The XRPL owes its success to its consensus protocol, facilitating swift and efficient transaction validation. The XRPL uses Federated Consensus as the validation system, which requires 80% or more of the validators to agree to reach consensus.

Transactions on the XRP Ledger settle in just 3-5 seconds, significantly faster than other cryptocurrencies like Bitcoin and Ethereum. This rapid settlement time is made possible by the Unique Node List (UNL), which ensures consensus among participating nodes, based on their trustworthiness and compliance with the network’s rules.

Ripple Payments: Connecting Banks and Payment Providers

Designed for financial institutions, Ripple Payments is a global payments network that counts Bank of America, Santander, and hundreds of other banks and multinational organizations among its customers. This network facilitates global transactions by providing a real-time gross settlement system, currency exchange, and remittance network.

Ripple Payments facilitates rapid and cost-effective cross-border payments by enabling banks to connect directly to its global, real-time settlement network. The network also serves as a bridge currency, using the XRP token to cover transaction fees and supply liquidity.

Understanding XRP: The Cryptocurrency Fueling the XRPL

XRP plays a vital role in powering operations and ensuring liquidity for cross-border transactions. As a digital asset, XRP offers numerous benefits, such as low transaction costs, rapid transaction settlement, and scalability.

The XRP Ledger is a distributed ledger that maintains a permanent and unchangeable record of transactions. This ledger is responsible for recording transaction data such as balances, accounts, and transfers, and relies on distributed ledger technology to facilitate the transfer of tokens representing various units of value.

How XRP Works: Fast and Low-Cost Transactions

The XRP Ledger Consensus Protocol enables the rapid and efficient execution of XRP transactions by allowing validators to securely synchronize their ledgers with other ledgers every three to five seconds. This ensures the validity of transactions and enables XRP’s rapid settlement times.

Each transaction conducted on the Ripple network incurs a nominal fee in XRP and is confirmed instantaneously. This low-cost, high-speed transaction capability is a key factor in XRP’s growing adoption and popularity among financial institutions.

XRP has a total supply of 100 billion premined tokens, with a predetermined distribution plan in place. To reduce uncertainty surrounding the release of XRP, the escrow has been put in place to implement trust and predictable release mechanisms. However, concerns about the potential dilution of value remain due to the vast supply of tokens.

With a current circulation of 55 billion tokens, Ripple has established a built-in smart contract that stipulates a maximum release of 1 billion XRP tokens to the market each month. This controlled release of tokens helps maintain a stable market and ensures the steady growth and adoption of XRP.

Investing in XRP, like any other digital asset, carries its share of risks and rewards. The ongoing regulatory challenges, market volatility, and centralization concerns are some of the potential risks associated with investing in XRP. However, XRP also offers the possibility of high returns and the ability to transfer funds rapidly and cost-effectively across borders.

Potential investors should carefully weigh the risks and rewards, and seek advice from a financial advisor before making any investment decisions. Understanding the factors that influence XRP’s market performance and keeping a close eye on the ongoing developments in the cryptocurrency market can help investors make informed decisions about whether to invest in XRP.

XRP’s market performance is subject to fluctuations due to the volatile nature of the cryptocurrency market. Factors that can influence the value of XRP include:

These factors can cause the value of XRP to rise or fall.

Investors considering adding XRP to their portfolio should be aware that XRP’s price can fluctuate significantly, both upward and downward. Monitoring market trends and regulatory developments can help investors make more informed decisions about when to buy, sell, or hold XRP.

In addition to its potential as an investment, XRP can also be used for transactions, investments, and remittances. Merchants and services worldwide are increasingly accepting XRP as a payment form. This widespread adoption of XRP demonstrates its potential not only as a digital asset for investment purposes but also as a practical means of conducting transactions and remittances.

Whether you’re looking to make a cross-border payment or purchase goods and services online, XRP offers a fast and cost-effective solution that is gaining traction among both consumers and businesses.

Purchasing and storing XRP involves using various platforms and wallets, depending on user preferences and location. One of the most popular platforms for purchasing XRP is 

After purchasing XRP, a secure digital wallet is needed to store your tokens. Some popular wallets for storing XRP include:

It is essential to select a wallet that meets your requirements and provides robust security measures to protect your XRP holdings.

Merchants and services across the globe are increasingly embracing XRP as a payment method. Some notable examples include:

While XRP’s primary use case remains in cross-border transactions and currency exchanges, its increasing acceptance by merchants and services demonstrates its potential as a practical and versatile digital asset for everyday transactions.

Ripple's Impact on the Financial Industry

Beyond its innovative technology and proliferating adoption, Ripple’s influence extends throughout the financial industry. The company has established partnerships with major banks and institutions, such as Bank of America, Santander, and American Express, to name a few. These partnerships have allowed Ripple to integrate its technology with existing financial systems, driving further innovation and adoption.

Alongside these partnerships, Ripple is actively forging new projects and innovations with potential to transform the financial industry in future years. Let’s take a closer look at some of these developments.

Ripple’s partnerships with various financial institutions have been a crucial factor in driving the adoption and integration of its technology. Some notable partners include:

These partnerships have enabled Ripple to leverage its unique technology, such as its On-Demand Liquidity (ODL) product, which uses XRP to facilitate faster and more cost-effective cross-border transactions. Ripple’s critical mass approach to partnership has enabled it to achieve rapid adoption rates, surpassing even Bitcoin in terms of application and utility-based adoption.

Ripple’s future developments include projects related to NFT issuance, smart contract implementation, and central bank digital currency (CBDC) applications. Staying abreast of emerging trends and technologies positions Ripple to continue propelling innovation in the financial industry. As a result, the company’s impact is likely to grow even further in the coming years, solidifying its status as a major player in the world of digital assets and financial technology.

The XRPL and its native digital asset XRP have the potential to revolutionize the financial industry by streamlining cross-border transactions, driving widespread adoption, and fostering innovation. Whether you’re an investor, a business owner, or an individual looking to make international payments, understanding the XRPL and XRP is essential in staying ahead of the curve in today’s rapidly evolving digital landscape.

XRP Ledger is an open-source public decentralized blockchain. It was built specifically

for payments. The XRPL is fast (~3 seconds per transaction), cheap ($0.0002 pertransaction), scalable (1,500+ tps), and carbon-neutral.

Its native cryptocurrency, XRP, serves as a bridge currency to facilitate the exchange of both crypto and fiat currencies and offer financial institutions an efficient solution for cross-border payments.

What was the outcome of the SEC’s lawsuit against Ripple? ?

In July 2023, the U.S. District Court of the Southern District of New York ruled thatas a matter of law, XRP is not a security. The court also found that as a matter of law, sales on exchanges, sales by executives , and other XRP distributions are not securities.

XRP is a digital asset that’s native to the XRP Ledger—an open-source, permissionless and decentralized 

Created in 2012 specifically for payments, XRP can settle transactions on the ledger in 3-5 seconds. It was built to be a better Bitcoin—faster, cheaper and greener than any other digital asset.

Given the fact that XRP is still 87% below its all-time high of $3.84, coupled with the risk that it could go to zero if it loses its case against the SEC, XRP is still a speculative investment and one should exercise caution when considering buying it.

How fast are transactions on the XRP Ledger?

XRP Ledger transactions are incredibly fast, settling in 3-5 seconds - much faster than Bitcoin and Ethereum.

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A Beginner’s Guide: What Is XRP All About?

Discover the differences between forex and crypto trading, exploring liquidity, decentralization, and regulation to help you decide which market suits your investment goals.

Forex trading is extremely popular among institutional and retail investors, thanks to its substantial liquidity, flexibility and healthy potential for returns. In recent years, 

g has emerged as a high-risk/high-return market, in which traders can start with modest capital and still turn significant profits.

Both trading environments — forex and crypto — operate according to less centralized and regulated formats than the 

 does. This means they are not issued by a central authority, such as a government, so no single entity has control over the market. However, the nature of their respective decentralization is very different, and the forex market — which is part of the traditional finance ecosystem — is relatively more regulated than cryptocurrency. 

Over the past few years, the level of regulation for crypto trading has been increasing, making this asset class more attractive to investors who prefer to stay within the realm of a regulated environment. With the increasing regulation of crypto, and forex's lightly regulated environment (at least compared to that of the stock market), the differences between these two popular markets are now more attenuated than ever.

Such developments are making many investors curious as to which of these two markets, forex or crypto, can deliver better returns and suit their investment goals. In this article, we aim to answer these fundamental questions.

The forex (foreign exchange) market is the world's most 

 financial market, enabling the trade in pairs of national fiat currencies, such as the U.S. dollar (USD), euro (EUR), Canadian dollar (CAD), Singapore dollar (SGD), Swedish krona (SEK), Japanese yen (JPY) and many more. Trades and positions on the forex market are all expressed in pairs of currencies (e.g., USD/EUR), with the first ticker called the base currency and the second one called the quote currency. A forex pair price indicates how much of the quote currency you need to pay to buy one unit of the base currency. For instance, a listing of USD/EUR 0.9 means that to buy one U.S. dollar, you'd need to pay 90 Euro cents.

The forex market features the highest liquidity out of all financial markets, with daily trading volumes above $7 trillion. Unlike the stock market, which operates within centralized and tightly regulated environments of stock exchanges, forex is a decentralized international market in which trades are conducted in an OTC format between market participants, such as brokers, central banks, commercial banks, foreign currency exchange bureaus and other financial entities. Retail traders typically use the services of forex brokerages to participate in the market. While a certain level of regulation is applied to forex markets, it's less stringent and detailed than the regulatory framework governing the stock market.

The majority of forex trade occurs in four main forex markets: Sydney, Tokyo, London and New York. Each market operates Monday through Friday, roughly during the local time’s business hours. Their working hours are designed so that when trade in one location wraps up, it starts in the next major market, ensuring that the overall international forex market remains available 24 hours a day, Monday through Friday. The market doesn't operate in any of its locations on Saturdays and Sundays.

There are seven major currency pairs (or “majors”) in the forex market:

The first four of these are the traditional major pairs, while the latter three are often referred to as commodity pairs, since they represent economies whose national currencies are sensitive to fluctuations in commodity prices. 

Over 80% of all forex trade is concentrated in these seven major pairs.

Crypto trading involves buying and selling cryptocurrencies via dedicated 

 (DEX) platforms. Around 85 to 90% of crypto trading occurs on CEXs. The crypto market is decentralized, and features even lower regulation than the forex market. However, regulatory bodies worldwide have ramped up their oversight of cryptocurrencies and crypto trading in recent years.

Crypto markets are characterized by high volatility, which presents both improved return opportunities and increased risks. The world's highest-capped cryptocurrency,

 (BTC), holds more than half (around 54%) of the entire crypto market capitalization as of Oct 22, 2024. It's also the second-most-traded crypto asset [behind the 

 (USDT) stablecoin] by daily trading volume. Other popular high-cap and actively traded cryptocurrencies include 

Similarities Between Forex and Crypto Trading

Both forex and crypto markets are open 24 hours a day, enabling flexible trade across all geographical time zones. One distinction, however, is that forex operates Monday to Friday only, while crypto markets are available 24/7.

Both markets are known to prominently feature 

 opportunities. However, the typical leverage ratios are higher in forex. The usual leverage ratios offered by popular crypto exchanges vary between 5x and 100x. Leverage over 100x may also be available, but is less common. In contrast, leverages in forex are typically between 20x and 400x, with some brokers offering ratios as high as 5,000x.

Both forex and crypto are popular with investors who aren’t shy of risk. Those who tend toward 

 can find ample opportunities in both of these markets. At the same time — not counting the risks amplified by high forex leverages — cryptocurrencies feature a larger degree of price volatility than forex pairs. If you like active speculative trading, crypto's price volatility and forex's steep leverages can both satisfy your needs. However, forex pairs are a notably less volatile option in the absence of leverage use.

Unlike the stock market, both forex and crypto trading are conducted in decentralized trading environments. The vast majority of forex trade happens via decentralized OTC markets, while cryptocurrencies themselves are well-known to be based on the principle of decentralization that underpins the operation of blockchain networks — platforms where crypto coins and tokens are issued and circulated.

Differences Between Forex and Crypto Trading

There's a fundamental difference in the nature of assets traded in these two markets. Forex trading involves fiat currencies issued by governments and guaranteed by them. Crypto trading involves digital currencies whose issuance, operations and value are ensured through the functionality of blockchain networks or blockchain-based 

 (DApps). In a practical sense, the viability of crypto trade is also highly dependent upon the operational health and reserves maintained by the leading crypto exchanges.

While forex is known to be less regulated than the stock market, forex brokers and other entities participating in the forex market still need to meet a variety of qualification requirements. For instance, in the U,S,, brokers need to be registered with the Commodity Futures Trading Commission (CFTC), and to fulfill other requirements.

In contrast, the cryptocurrency market is notably less regulated. This is changing, however, with the increasing regulatory attention directed toward it from authorities like the U.S. Securities and Exchange Commission (SEC) and other regulatory bodies around the world. In the U.S., the SEC has declared some cryptocurrencies to be 

, potentially bringing them under the same regulatory framework as stocks — financial products considerably more regulated than forex.

Forex's trading volumes are vastly higher than those of the crypto market. As of late 2024, forex has typical daily volumes above $7 trillion, while the entire crypto market's daily turnover is around $110 billion. The cryptocurrency market's lower liquidity is one of the 

Forex is also a much more mature market as compared to crypto. The first instances of trading fiat currencies date back many centuries, and modern, active currency trading started in the early 1970s when the U.S. dollar and other major national currencies transitioned to a free-floating exchange rate format. In contrast, the first cryptocurrency trading platforms — Bitcoinmarket.com and Mt.Gox — were launched only in 2010, making crypto trading a relatively young market at just 14 years old.

The main pros of forex trading over crypto trading include more stability in price movements, much higher liquidity, somewhat more stringent regulatory protections and a more established market that allows traders to apply proven strategies and approaches.

At the same time, forex has specific disadvantages and risks associated with it. These include steep leverages, which can be a minefield for inexperienced traders or those who might overestimate their experience; fewer trading days compared to crypto markets, which may not satisfy the needs of weekend warriors; and lower variety in terms of products/assets on offer, since the bulk of forex trade is concentrated in the seven major pairs. The rest of forex trading volume is attributable to minor pairs (those involving the trade between EUR, GBP, CHF and JPY, e.g., EUR/JPY or GBP/EUR) and exotic pairs (those involving USD, EUR, GBP, CHF or JPY on one side and a lower-volume currency, typically from a developing or smaller economy, on the other side).

The key pros of crypto trading include greater potential returns due to high volatility, a 27/4 market, relatively low barriers to entry and a widely diverse choice of assets.

However, the same elevated volatility that might deliver staggering returns also increases the overall risk in trading cryptos. Other cons of crypto include a less mature market, which makes established trading strategies more uncertain in terms of their effectiveness; lower levels of liquidity; regulatory uncertainty; and the potential of 

Forex can be suitable for traders who would like to utilize an established market with substantial liquidity. It might also provide a more stable trading environment than for trading crypto, particularly if you’re careful with the generous leverages on offer.

Many traders also prefer to combine forex trading with other asset classes to diversify their portfolios. For such users, Bybit offers the 

 — a mixed-asset-class, unified account that you can fund with the USDT stablecoin and then use to trade forex, commodities and major stock market indices in the format of contracts for difference (CFDs).

Until Nov 8, 2024, new Bybit MT5 users will also be eligible to participate in the 

 campaign. Under the rules of the quest, new users need to deposit and trade just 100 USDT for the chance to win over 1,000 USDT worth of prizes.

Cryptocurrencies suit traders who prefer high-risk/high-return strategies to maximize their profits in a volatile environment. Due to its decentralized nature and low regulation, the crypto market also has low barriers to entry, making it suitable for those starting with limited capital. The diversity of assets traded is also vast, with around 15,000 cryptocurrencies in existence as of October 2024 and hundreds of the leading ones offered on major CEXs.

For instance, as of late October 2024, there are over 600 crypto pairs available on Bybit, definitely a richer variety than forex's seven majors; around 20 minors; and fewer than 100 exotics. Bybit also gives you a vast array of options to trade crypto assets via the 

Which Is Better for Beginners — Crypto or Forex?

While it's up to debate which market is more suitable for beginners, some factors point in the direction of crypto. First, while crypto markets are more volatile, forex markets feature significantly higher leverages, which can create a much more risky scenario for an inexperienced trader. The crypto market also has lower barriers to entry, with generally lower minimum initial deposit requirements and the ability to register an account directly with trading platforms (such as CEXs) without a broker. The easier initial setup also suits beginners.

Both forex and crypto trading come with their own unique benefits. Ultimately, the choice between the two will depend upon your 

 approach, familiarity with each market, trading style, overall trading experience, penchant for leverage and long-term investment goals. Note, however, that the best traders generally diversify their portfolios and endeavor to use a variety of asset classes. Thus, it might not be a question of which of these two markets is better, but rather how to mix and combine your investments — including forex and crypto.

Beginner

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Forex vs. Crypto Trading: Which Should You Choose?

Compare the pros and cons of investing in cryptocurrencies versus stocks, including risk, regulation, and potential returns.

Over the past few years, cryptocurrencies have become a popular and commonly traded asset class. Although the crypto market is still well behind the stock market by size and trade volumes, it has achieved impressive growth in recent years, with many investors increasingly appreciating the unique benefits that this young asset class may deliver. Among these benefits are higher potential returns, with Bitcoin (BTC) having vastly 

 in recent years; low barriers to entry; diverse choice of assets; and independence from a central controlling authority.

Despite these benefits, many investors are concerned about levels of regulation for both cryptocurrencies and their trade. Having grown accustomed to the tightly regulated stock market, some investors find crypto too risky for their taste. Yet, over the last few years, the levels of regulatory control and oversight applied to cryptocurrency have grown substantially, increasingly blurring the lines between crypto and stocks. 

While cryptocurrencies are still less regulated than traditional asset classes, such as stocks, bonds, commodities and forex, they now operate under a much more defined and rigorous regulatory system that allows more investors — including those who have traditionally stuck with the stock market — to take advantage of crypto's unique benefits.

With crypto becoming increasingly accepted as a viable form of investment, many investors and traders are now wondering if trading cryptocurrencies can provide an edge over trading stocks, or any advantages as an accompaniment to trading stocks. In this article, we look at these two major asset classes of modern finance — crypto and stocks — to help you answer these questions with more clarity.

 are digital assets issued generally circulated on 

 — networks whose operations and security are enforced by a 

 among many (often thousands) of independent network nodes. On these networks, cryptocurrencies are used as the asset directly utilized for facilitating decentralized consensus and on-chain security. 

Additionally, cryptocurrencies act as digital currencies for value exchange and storage within individual blockchains. In addition to its on-chain uses, crypto is also utilized beyond blockchain networks as a digital currency available for trading on both 

In fact, trading crypto via CEXs has become a major activity for many traders and investors, due to its use of an 

 system that greatly resembles that of traditional stock markets. This structure has created a new and vibrant market within the overall finance ecosystem. As of the time of this writing (Oct 21, 2024), the overall market capitalization of all cryptocurrencies stands at over $2.48 trillion, a figure that makes the crypto market hard to ignore.

The world's first and still largest cryptocurrency asset — BTC, more frequently referred to simply as 

 — was launched in early 2009. While thousands of cryptocurrencies have been introduced in the years following Bitcoin's birth, none has managed to topple the pioneer of the cryptocurrency world. Bitcoin still holds slightly over half (54%) of the $2.48 trillion market cap that makes up the entire crypto market. Native to the Bitcoin blockchain, BTC is used to secure the network's operations, pay for on-chain transaction fees and to store and transfer value.

With close to 13% of the total market cap share, 

 (ETH) is the crypto market's second-largest asset. ETH, often referred to as Ether, performs exactly the same essential functions on its own blockchain, Ethereum, as BTC does on the Bitcoin chain — securing the network's operations, acting as a means of payment for on-chain transfer fees and being used to store and transfer value. However, the Ethereum blockchain has an additional functionality that Bitcoin largely lacks — the ability to support 

 (DApps), blockchain-based applications powered by complex programmable logic via 

. ETH, along with the many cryptocurrencies native to these applications, can generally be used for transaction fee payments within the DApps.

The Bitcoin and Ethereum duo dominate the cryptocurrency market cap rankings, together holding nearly two-thirds of the entire crypto market's capitalization.

Stocks are regulated financial assets that grant holders the right to a share of public company ownership. They’re traded on highly regulated stock exchanges, such as the New York Stock Exchange (NYSE), London Stock Exchange (LSE) and Nasdaq-100 (NDX). In the U.S., the primary regulator for stock exchanges is the Securities and Exchange Commission (SEC).

Stock ownership may entitle you to receive dividends distributed by a company, of which you’re a partial owner. However, dividend payments aren't an obligation for a public company, and in many cases, investors don't get this perk for years, if ever. Just ask any stock owner of Tesla (TSLA), a business well-known to have never paid dividends.

Many stock market investors, however, aren't relying on or even expecting dividends from their assets. The typical stock owner is counting on their stocks’ price appreciation to turn a profit.

Stock ownership can also act as an indirect way to invest in a particular commodity. For instance, some investors who want to include gold-linked assets in their portfolios may choose stocks of gold mining companies, such as Newmont Corporation (NEM), Barrick Gold Corporation (GOLD), Gold Fields Limited (GFI) and more.

Crypto vs. Stocks: Similarities and Differences

Both cryptocurrencies and stocks are traded mostly on dedicated order book-based exchange platforms — stock exchanges in the case of stocks, and CEXs in the case of crypto. A small volume of stock trade does occur outside of exchanges, on both private and over-the-counter (OTC) markets. However, the majority of trade volume in stocks occurs on exchanges. Likewise, a modest proportion (usually around 10 to 15%) of crypto trade takes place on blockchain-based DEXs, with the remaining trade flowing through CEX platforms.

Both crypto and stocks can be valuable assets for the purpose of diversifying portfolios. In fact, a popular strategy is to combine these two asset classes to form a well-diversified investment position. Additionally, both markets offer a wide variety of choices for investors. As of mid-October 2024, there are around 60,000 publicly traded company stocks in existence, with the world's largest exchange by market cap (NYSE) listing close to 2,300 of those companies. Meanwhile, the number of cryptocurrencies is far from trivial — approximately 15,000, per data from CoinGecko.

Both cryptocurrencies and stocks can involve scams and underhanded tactics on the part of the companies and entities behind them. Within crypto markets, 

 are the most publicized form of fraud. In a typical rug pull, the cryptocurrency issuer quickly withdraws all liquidity and support for the asset, leaving investors with worthless coins. In the stock market, insider trading — whereby certain investors and groups trade the stock using non-public information that gives them an unfair advantage over other market participants— is a common problem.

 before investing in a stock or crypto token is imperative for all investors who wish to avoid falling victim to such scams.

On average, cryptocurrencies feature a markedly higher level of 

 than stocks. While this reality makes crypto a relatively riskier asset type, it also means higher potential returns. However, that's not necessarily the case in all scenarios. For example, for extended periods of time, certain stocks — particularly in the technology sector — may exhibit greater volatility than the more stable cryptocurrencies, such as Bitcoin.

The stock market is heavily regulated, while cryptocurrencies currently operate in an environment with much lower regulatory oversight. It should be noted, however, that in recent years, the level of regulation in crypto markets has gradually increased. Regulatory authorities such as the U,S, SEC are increasingly turning their attention to crypto. 

While some decentralization purists in the crypto industry dislike this development, the fact is that increased regulation has allowed cryptocurrencies to enter the financial mainstream via products such as 

Stocks entitle each of their holders to a share of company ownership. The company, including its assets, is the underlying entity owned by the stockholder. In contrast, most cryptocurrencies don't confer part-ownership of the blockchain platform or app from which the crypto is issued. The exceptions to this generality are 

, which may mimic the utility of stocks by providing ownership rights with regard to their native crypto projects. However, the full regulatory status of security tokens is still a gray area as of late 2024.

Stock markets are much older and more mature than crypto markets. The first stock exchanges appeared centuries ago, with the oldest exchange — the Amsterdam Stock Exchange (AEX, now referred to as Euronext Amsterdam)— established in 1602. Since at least the 19th century, trading stocks has been a major component of the world’s overall financial system. In contrast, the first (and now defunct) platforms that facilitated trade in crypto assets — Bitcoinmarket.com and Mt. Gox — emerged only in 2010, about a year after the launch of Bitcoin.

Pros and Cons of Investing in Crypto vs. Stocks

The key advantages of investing in crypto include the generally higher potential for returns, crypto’s 24/7 markets and the ability to diversify away from overreliance on stocks. The last point is particularly relevant for investors who tend to concentrate their asset allocations exclusively on stocks and bonds, increasing their dependence upon these markets. Some crypto investors also greatly value the ability to own and trade assets independent of a centralized authority's control.

Among the disadvantages of crypto investment are higher risk/volatility levels, lack of full regulation, and the potential vulnerability of some blockchains to technology hacks. Due to their lower trading volumes than those of stock markets, crypto markets might also be influenced by 

 — market participants who control large shares of a certain crypto asset, giving them more leverage to manipulate its prices. The influence of whales is more of a concern for smaller-cap coins than for assets like Bitcoin, Ether or other major cryptos that feature significant trading volumes.

Investing in stocks provides advantages such as lower volatility/risk, more regulatory protection, familiarity (for many investors) and a lower incidence of outright scams. The stock market is also solidly established, with a long history of data. This allows investors and traders to apply time-tested trading strategies and approaches.

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