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Home Markets Cryptocurrency Lending, Cardano and NFT: The top topics in the new crypto compass

Lending, Cardano and NFT: The top topics in the new crypto compass

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Lending, Cardano and NFT: The top topics in the new crypto compass

The new crypto compass is here. From the Coin of the Month, Cardano, to NFT art and the question of how crypto lending brings back interest – that’s in there.

Coin of the month: Cardano in the smart contract age

Finally done. ADA investors have had to wait for this moment for six months since the last update, then suddenly things went very quickly: On September 12th, Alonzo, the most drastic hard fork in the Cardano era, was carried out in the network. Since then, decentralized applications – dApps – can be developed on the network. The effects of the drastic update on the entire DeFi ecosystem can only be guessed at, but how much the crypto space was looking forward to this moment, could be seen weeks earlier in the steep growth curve of the native crypto currency ADA. After the crypto market woke up from its summer consolidation, Cardano went in rapid succession: the cryptocurrency was still fighting bitterly for the US dollar mark in July, Moritz Draht Cardano (ADA) takes a look back at the history of the protocol in Coin of the Month October . He says: “The Flippening course has been set, but now Cardano has to deliver.”

Crypto lending: How BlockFi, DeFi and Co. bring back interest

Some may still remember: interest. What seems like a relic from the distant past actually belongs to the basic equipment of economic thinking. The waiver of liquidity is remunerated. So if you put your savings in the bank, you can actually count on a risk premium, i.e. interest, for the associated risks.

Interest plays a major role in the financial world. Ultimately, the investor gets an impression of the risk of an investment: the greater the risk associated with an investment, the higher the premium. One also speaks of the so-called risk curve. At least in theory.

But the interest is broken. For example, if you have over 100,000 euros in German bank accounts, you will not be rewarded for it, but punished. Negative interest rates – actually an oxymoron in economics lectures – are not the exception, but the rule. The comparison portal Verivox lists a total of 389 German credit institutions with negative interest on savings. Most credit balances of EUR 100,000 or more earn interest at minus 0.5 percent, with many even starting at EUR 50,000.

But the interest is not lost. In the crypto space, he is making his way back into the mainstream.

NFT: What to consider before investing

Since the hype surrounding NFT has sprouted countless projects in the past few months and the prices for individual NFTs skyrocketed, it is likely that many of the projects will soon be completely worthless. It is not easy to clearly differentiate between serious projects and attempts to get a lot of money quickly. Hence, from a buyer’s point of view, there are many questions to ask yourself before buying an NFT. 

How do you find your way in such a dynamic, young and fast-moving ecosystem? What should you consider before buying? How do you know the data you’re using is reliable? It is difficult to keep track of the countless projects, which are joined by dozens of new ones every day.

In the latest edition of the Kryptokompass , our author Leon Waidmann addresses the question of what you should definitely consider in advance of buying an NFT in order to be successful.

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