jeperez
Open Trade
High-Frequency Trader
3.2 Years
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The safest thing these days is a DCA bot, It won't make you rich, but it protects your capital. The market is too complex for futures #BTCRebound #Trump100Days
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Mubarak: The New Cryptocurrency Aiming to Revolutionize the Market
Revolutionize the Market
In the dynamic world of cryptocurrencies, new projects emerge every year with the promise of changing the way we understand digital money. One of the most recent to capture the attention of investors and enthusiasts is Mubarak, a cryptocurrency that promises innovation, stability, and a fresh vision for the future of decentralized finance (DeFi).
What is Mubarak?
Mubarak is a next-generation cryptocurrency designed not only as an investment asset but as a complete ecosystem. Unlike many tokens launched without a clear value proposition, Mubarak presents itself as a project that combines accessibility with security, seeking to offer real solutions to problems such as extreme volatility and the lack of usability of other cryptos.
In the dynamic world of cryptocurrencies, new projects emerge every year with the promise of changing the way we understand digital money. One of the most recent to capture the attention of investors and enthusiasts is Mubarak, a cryptocurrency that promises innovation, stability, and a fresh vision for the future of decentralized finance (DeFi).
What is Mubarak?
Mubarak is a next-generation cryptocurrency designed not only as an investment asset but as a complete ecosystem. Unlike many tokens launched without a clear value proposition, Mubarak presents itself as a project that combines accessibility with security, seeking to offer real solutions to problems such as extreme volatility and the lack of usability of other cryptos.
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I would like to believe it
has bel coin started an upward trend?
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waiting for the fall
WCTUSDT
5X
Short
Unrealized PNL (USDT)
-0.14
-2.00%
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we have to wait, today it takes off
still survives #belusdt
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I have the same hope
trying to move forward with what I have left, will I be able to??? 🥲 I try to always be optimistic🫰
#BitcoinWithTariffs
#Farmcoin
#BinanceSquareFamily
#BitcoinWithTariffs
#Farmcoin
#BinanceSquareFamily
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Binance Academy
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How Can Tariffs Impact the Crypto Markets?
Key Takeaways
Tariffs are taxes that governments put on imported goods. The idea is to make foreign products more expensive so that local businesses can compete better.
In the short term, tariffs often create uncertainty and market volatility. Depending on how they are announced and implemented, investors may get out of riskier assets like stocks and crypto, leading to price drops.
Tariffs on imported mining hardware and semiconductor chips may also increase operational expenses for miners who rely on imported products.
In the medium and long term, there is a possibility of crypto assets, in particular Bitcoin, becoming more attractive as a hedge against inflation and weaker fiat currencies.
What Are Tariffs?
Tariffs are taxes imposed on imported goods and services, often used by governments to protect domestic industries, generate revenue, or retaliate against perceived unfair trade practices.
While they can provide short-term advantages for specific industries, tariffs may also lead to increased prices for consumers and businesses, trade tensions, and economic disruptions.
In a globalized economy, tariffs affect not just the industries directly targeted but also the broader financial markets. They can influence inflation rates, investor sentiment, and supply chains, which in turn can affect currencies, commodities, and cryptocurrencies.
The Role of US Tariffs in Global Trade
The United States has frequently used tariffs as a trade policy tool, particularly under the Trump administration, which imposed sweeping tariffs on goods from China, the European Union, Canada, and other trading partners. The recent "Liberation Day" tariffs of 2025 have intensified global trade disputes, affecting major industries and financial markets.
These policies have already affected industries like manufacturing, technology, and agriculture. But what about crypto? Even though digital currencies don’t work the exact same way as traditional financial assets, they still react to economic changes. Let’s take a closer look at how tariffs can impact the crypto world.
How Tariffs Can Influence the Crypto Market
The impact of tariffs on financial markets and cryptocurrencies can vary greatly depending on how they are calculated, announced, and implemented. There may also be a significant difference between short-term and long-term market reactions.
For example, in the short term, markets may react negatively due to rising levels of fear, uncertainty, and doubt. But that doesn’t necessarily mean investors will continue to be bearish in the long term. It depends, among other things, on how clearly the governments communicate their plans and how well these plans are executed.
1. Investor sentiment and market volatility
Tariffs create economic uncertainty, leading to volatility in financial markets. Cryptocurrencies, particularly Bitcoin, have often been perceived as high-risk assets. Rising trade tensions impact market sentiment, causing investors to move their capital away from crypto assets toward safer options like gold or government bonds.
For example, in 2025, following the announcement of increased US tariffs on Chinese imports, bitcoin’s price experienced a sharp decline. This suggests that, in the short term, tariffs can negatively impact cryptocurrency prices as uncertainty increases and investors become more risk-averse.
2. Inflation, interest rates and crypto prices
Higher tariffs typically lead to increased costs for imported goods. In situations like this, companies usually pass the extra costs onto consumers, making everyday goods more expensive and leading to inflation.
To fight inflation, central banks, including the Federal Reserve, often raise interest rates. Higher interest rates make borrowing money more expensive, which means less cash is flowing into investments—including crypto.
But there’s another side to this. If inflation gets really bad and people lose trust in traditional currencies, they might turn to crypto, especially Bitcoin, as a way to protect their money. In countries with hyperinflation and weaker economies, this has already happened.
The long-term effect depends on how aggressively central banks respond to tariff-induced inflation and whether crypto investors view bitcoin as a good store of value similar to gold.
3. Crypto mining costs could rise
Many cryptocurrency mining operations rely on imported hardware, particularly from China, where a significant portion of ASIC miners and GPUs are produced.
If the US places higher tariffs on Chinese tech products, it could drive up the cost of mining hardware, making it more expensive to run a mining operation. This could also encourage miners to relocate to regions with lower operational costs and fewer trade restrictions.
In addition, if tariffs target semiconductor chips (which are crucial for mining rigs), the impact could be even bigger.
4. Currency devaluation and crypto adoption
In certain cases, trade wars and high tariffs can weaken national currencies, making cryptocurrencies a more appealing alternative. In countries experiencing rapid currency devaluation, citizens often turn to bitcoin and stablecoins to preserve wealth.
For instance, when Argentina and Turkey faced economic instability, their crypto adoption rates surged as residents sought alternatives to depreciating local currencies. If US tariffs lead to similar economic instability in affected countries, crypto adoption could rise in the long term.
Is Bitcoin a Safe Haven or Just Another Risky Asset?
Some investors treat it like a "safe haven" asset—especially the early adopters. Others see it as a speculative investment that’s as risky as stocks.
Historically, Bitcoin has followed stock market trends during periods of economic stress. When the stock market drops due to tariffs, Bitcoin often does too. But if the global economy worsens, Bitcoin could take on more of a "gold-like" role, attracting investors looking for a hedge against inflation and currency devaluation.
The long-term impact of tariffs on bitcoin depends on whether it is seen primarily as a speculative asset or as a hedge against macroeconomic risks.
Closing Thoughts
While tariffs mainly target goods and services, their effects go far beyond that. They can shake up investor confidence, drive up mining costs, and even push more people toward digital assets. Trade policies can certainly influence how people invest, where companies do business, and even what kinds of currency people trust.
In the short term, increased uncertainty can lead to price drops as investors move away from risky assets. In the medium and long term, there is a possibility of Bitcoin becoming more attractive as a “store of value” asset.
Further Reading
Is Bitcoin a Store of Value?
What Is Monetary Policy?
What Is the Crypto Fear and Greed Index?
This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Tariffs are taxes that governments put on imported goods. The idea is to make foreign products more expensive so that local businesses can compete better.
In the short term, tariffs often create uncertainty and market volatility. Depending on how they are announced and implemented, investors may get out of riskier assets like stocks and crypto, leading to price drops.
Tariffs on imported mining hardware and semiconductor chips may also increase operational expenses for miners who rely on imported products.
In the medium and long term, there is a possibility of crypto assets, in particular Bitcoin, becoming more attractive as a hedge against inflation and weaker fiat currencies.
What Are Tariffs?
Tariffs are taxes imposed on imported goods and services, often used by governments to protect domestic industries, generate revenue, or retaliate against perceived unfair trade practices.
While they can provide short-term advantages for specific industries, tariffs may also lead to increased prices for consumers and businesses, trade tensions, and economic disruptions.
In a globalized economy, tariffs affect not just the industries directly targeted but also the broader financial markets. They can influence inflation rates, investor sentiment, and supply chains, which in turn can affect currencies, commodities, and cryptocurrencies.
The Role of US Tariffs in Global Trade
The United States has frequently used tariffs as a trade policy tool, particularly under the Trump administration, which imposed sweeping tariffs on goods from China, the European Union, Canada, and other trading partners. The recent "Liberation Day" tariffs of 2025 have intensified global trade disputes, affecting major industries and financial markets.
These policies have already affected industries like manufacturing, technology, and agriculture. But what about crypto? Even though digital currencies don’t work the exact same way as traditional financial assets, they still react to economic changes. Let’s take a closer look at how tariffs can impact the crypto world.
How Tariffs Can Influence the Crypto Market
The impact of tariffs on financial markets and cryptocurrencies can vary greatly depending on how they are calculated, announced, and implemented. There may also be a significant difference between short-term and long-term market reactions.
For example, in the short term, markets may react negatively due to rising levels of fear, uncertainty, and doubt. But that doesn’t necessarily mean investors will continue to be bearish in the long term. It depends, among other things, on how clearly the governments communicate their plans and how well these plans are executed.
1. Investor sentiment and market volatility
Tariffs create economic uncertainty, leading to volatility in financial markets. Cryptocurrencies, particularly Bitcoin, have often been perceived as high-risk assets. Rising trade tensions impact market sentiment, causing investors to move their capital away from crypto assets toward safer options like gold or government bonds.
For example, in 2025, following the announcement of increased US tariffs on Chinese imports, bitcoin’s price experienced a sharp decline. This suggests that, in the short term, tariffs can negatively impact cryptocurrency prices as uncertainty increases and investors become more risk-averse.
2. Inflation, interest rates and crypto prices
Higher tariffs typically lead to increased costs for imported goods. In situations like this, companies usually pass the extra costs onto consumers, making everyday goods more expensive and leading to inflation.
To fight inflation, central banks, including the Federal Reserve, often raise interest rates. Higher interest rates make borrowing money more expensive, which means less cash is flowing into investments—including crypto.
But there’s another side to this. If inflation gets really bad and people lose trust in traditional currencies, they might turn to crypto, especially Bitcoin, as a way to protect their money. In countries with hyperinflation and weaker economies, this has already happened.
The long-term effect depends on how aggressively central banks respond to tariff-induced inflation and whether crypto investors view bitcoin as a good store of value similar to gold.
3. Crypto mining costs could rise
Many cryptocurrency mining operations rely on imported hardware, particularly from China, where a significant portion of ASIC miners and GPUs are produced.
If the US places higher tariffs on Chinese tech products, it could drive up the cost of mining hardware, making it more expensive to run a mining operation. This could also encourage miners to relocate to regions with lower operational costs and fewer trade restrictions.
In addition, if tariffs target semiconductor chips (which are crucial for mining rigs), the impact could be even bigger.
4. Currency devaluation and crypto adoption
In certain cases, trade wars and high tariffs can weaken national currencies, making cryptocurrencies a more appealing alternative. In countries experiencing rapid currency devaluation, citizens often turn to bitcoin and stablecoins to preserve wealth.
For instance, when Argentina and Turkey faced economic instability, their crypto adoption rates surged as residents sought alternatives to depreciating local currencies. If US tariffs lead to similar economic instability in affected countries, crypto adoption could rise in the long term.
Is Bitcoin a Safe Haven or Just Another Risky Asset?
Some investors treat it like a "safe haven" asset—especially the early adopters. Others see it as a speculative investment that’s as risky as stocks.
Historically, Bitcoin has followed stock market trends during periods of economic stress. When the stock market drops due to tariffs, Bitcoin often does too. But if the global economy worsens, Bitcoin could take on more of a "gold-like" role, attracting investors looking for a hedge against inflation and currency devaluation.
The long-term impact of tariffs on bitcoin depends on whether it is seen primarily as a speculative asset or as a hedge against macroeconomic risks.
Closing Thoughts
While tariffs mainly target goods and services, their effects go far beyond that. They can shake up investor confidence, drive up mining costs, and even push more people toward digital assets. Trade policies can certainly influence how people invest, where companies do business, and even what kinds of currency people trust.
In the short term, increased uncertainty can lead to price drops as investors move away from risky assets. In the medium and long term, there is a possibility of Bitcoin becoming more attractive as a “store of value” asset.
Further Reading
Is Bitcoin a Store of Value?
What Is Monetary Policy?
What Is the Crypto Fear and Greed Index?
This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
hi
Binance Academy
--
What Is Particle Network (PARTI)?
Key Takeaways
Particle Network simplifies blockchain by allowing users to interact with multiple networks through a single account, eliminating the need for many different wallets and manual asset bridging.
Key features include Universal Liquidity and Universal Gas, which allow users to access assets across chains and pay transaction fees with any token.
Built as a modular Layer-1 blockchain, Particle Network ensures compatibility with existing DApps and offers a developer-friendly environment.
Introduction
The growth of blockchain technology led to the creation of many separate networks, each with its own ecosystem. While this has given users more choices, it has also caused problems like divided liquidity and complicated cross-chain interactions. Particle Network aims to address these issues by creating a unified system that allows easy communication between different blockchains.
What Is Particle Network?
Particle Network is a Layer-1 blockchain designed to simplify and integrate Web3 interactions. It introduces a concept called chain abstraction, which allows users to interact with multiple blockchains using a single account. All without the need to manually bridge assets or manage multiple crypto wallets.
Why Was Particle Network Created?
With hundreds of networks available and a growing number of modular and application-specific blockchains, the Web3 landscape has become more fragmented. This caused a liquidity fragmentation that forced users to spread their assets across multiple chains and wallets. They also need to hold different tokens to pay for gas and transaction fees.
Particle Network was created to address those common issues. It offers a unified ecosystem that enhances user experience and promotes broader adoption of blockchain technology and cryptocurrencies.
How Does Particle Network Work?
Particle Network introduces several functionalities to create a smooth multi-chain experience. These include Universal Accounts, Universal Liquidity, and Universal Gas.
1. Universal Accounts
One of Particle’s key products is called Universal Accounts. It’s designed to provide users with a unified address and balance across different networks. This eliminates the need for users to switch between chains, making transactions smoother and reducing friction in the Web3 ecosystem.
Source: whitepaper.particle.network
Universal Accounts provide users with a single address that works across multiple blockchains. This account synchronizes with different blockchain networks, allowing users to interact with decentralized applications (DApps) and transfer assets without manually switching networks. The benefits of this system include:
Simplified user experience – No need to manage multiple wallets.
Improved security – Reduces risks associated with handling multiple private keys.
Seamless DApp interaction – Users can engage with DApps across different chains from a single account.
2. Universal Liquidity
One of the major challenges in the blockchain space is liquidity fragmentation. Assets are often locked within individual blockchains, making it difficult to use them across multiple networks. Particle Network addresses this issue with Universal Liquidity, which allows users to access and use their assets across chains efficiently.
This is achieved through atomic cross-chain transactions, meaning users can execute trades and transfers that are automatically processed across different blockchains.
3. Universal Gas
Every blockchain requires users to pay gas fees to process transactions. Normally, each blockchain has its own native token for gas fees, which forces users to maintain a balance of different tokens across networks.
Particle Network introduces Universal Gas, which allows users to pay transaction fees using any token, regardless of the blockchain they are interacting with. This system uses a Paymaster mechanism that automatically converts tokens into the required gas fee.
The advantages of Universal Gas include:
No need to hold multiple gas tokens, making transactions more convenient.
Improved accessibility for new users, as they can interact with blockchains without worrying about gas fees.
Faster operations as users don’t need to swap assets before making a transaction.
Modular Layer-1 Design
Particle Network is built as a modular Layer-1 blockchain, meaning it is designed for flexibility and scalability. It serves as a coordination engine for Universal Accounts and manages cross-chain transactions efficiently.
Some key characteristics of its modular design include:
State synchronization – Ensures that user balances and account states remain consistent across different chains.
Outsourced validation and data storage – Particle Network leverages external services for validation and data availability, making the system more efficient.
High-performance execution environment – The network supports the Ethereum Virtual Machine (EVM), making it compatible with existing DApps and blockchain projects.
PARTI on Binance HODLer Airdrops
On March 25, 2025, Binance announced Particle Network (PARTI) as the 13th project on the Binance HODLer Airdrops program. Users who subscribed their BNB to Simple Earn or On-Chain Yields products during the eligibility period qualified for PARTI rewards. A total of 30 million PARTI were allocated to the program.
After the airdrop, PARTI was listed on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.
Closing Thoughts
Particle Network is an innovative blockchain project focused on solving fragmentation issues in Web3. By introducing Universal Accounts, Universal Liquidity, and Universal Gas, it streamlines the multi-chain experience, making blockchain interactions more efficient and user-friendly.
With its modular Layer-1 architecture, Particle Network aims to provide a scalable and seamless environment for blockchain users and developers. Their goal is to improve interoperability and make blockchain technology more accessible to a wider audience.
Further Reading
What Is Chain Abstraction?
What Are Modular Blockchains?
What Are Appchains (Application-Specific Blockchains)?
Disclaimer: This article is for educational purposes only. This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Particle Network simplifies blockchain by allowing users to interact with multiple networks through a single account, eliminating the need for many different wallets and manual asset bridging.
Key features include Universal Liquidity and Universal Gas, which allow users to access assets across chains and pay transaction fees with any token.
Built as a modular Layer-1 blockchain, Particle Network ensures compatibility with existing DApps and offers a developer-friendly environment.
Introduction
The growth of blockchain technology led to the creation of many separate networks, each with its own ecosystem. While this has given users more choices, it has also caused problems like divided liquidity and complicated cross-chain interactions. Particle Network aims to address these issues by creating a unified system that allows easy communication between different blockchains.
What Is Particle Network?
Particle Network is a Layer-1 blockchain designed to simplify and integrate Web3 interactions. It introduces a concept called chain abstraction, which allows users to interact with multiple blockchains using a single account. All without the need to manually bridge assets or manage multiple crypto wallets.
Why Was Particle Network Created?
With hundreds of networks available and a growing number of modular and application-specific blockchains, the Web3 landscape has become more fragmented. This caused a liquidity fragmentation that forced users to spread their assets across multiple chains and wallets. They also need to hold different tokens to pay for gas and transaction fees.
Particle Network was created to address those common issues. It offers a unified ecosystem that enhances user experience and promotes broader adoption of blockchain technology and cryptocurrencies.
How Does Particle Network Work?
Particle Network introduces several functionalities to create a smooth multi-chain experience. These include Universal Accounts, Universal Liquidity, and Universal Gas.
1. Universal Accounts
One of Particle’s key products is called Universal Accounts. It’s designed to provide users with a unified address and balance across different networks. This eliminates the need for users to switch between chains, making transactions smoother and reducing friction in the Web3 ecosystem.
Source: whitepaper.particle.network
Universal Accounts provide users with a single address that works across multiple blockchains. This account synchronizes with different blockchain networks, allowing users to interact with decentralized applications (DApps) and transfer assets without manually switching networks. The benefits of this system include:
Simplified user experience – No need to manage multiple wallets.
Improved security – Reduces risks associated with handling multiple private keys.
Seamless DApp interaction – Users can engage with DApps across different chains from a single account.
2. Universal Liquidity
One of the major challenges in the blockchain space is liquidity fragmentation. Assets are often locked within individual blockchains, making it difficult to use them across multiple networks. Particle Network addresses this issue with Universal Liquidity, which allows users to access and use their assets across chains efficiently.
This is achieved through atomic cross-chain transactions, meaning users can execute trades and transfers that are automatically processed across different blockchains.
3. Universal Gas
Every blockchain requires users to pay gas fees to process transactions. Normally, each blockchain has its own native token for gas fees, which forces users to maintain a balance of different tokens across networks.
Particle Network introduces Universal Gas, which allows users to pay transaction fees using any token, regardless of the blockchain they are interacting with. This system uses a Paymaster mechanism that automatically converts tokens into the required gas fee.
The advantages of Universal Gas include:
No need to hold multiple gas tokens, making transactions more convenient.
Improved accessibility for new users, as they can interact with blockchains without worrying about gas fees.
Faster operations as users don’t need to swap assets before making a transaction.
Modular Layer-1 Design
Particle Network is built as a modular Layer-1 blockchain, meaning it is designed for flexibility and scalability. It serves as a coordination engine for Universal Accounts and manages cross-chain transactions efficiently.
Some key characteristics of its modular design include:
State synchronization – Ensures that user balances and account states remain consistent across different chains.
Outsourced validation and data storage – Particle Network leverages external services for validation and data availability, making the system more efficient.
High-performance execution environment – The network supports the Ethereum Virtual Machine (EVM), making it compatible with existing DApps and blockchain projects.
PARTI on Binance HODLer Airdrops
On March 25, 2025, Binance announced Particle Network (PARTI) as the 13th project on the Binance HODLer Airdrops program. Users who subscribed their BNB to Simple Earn or On-Chain Yields products during the eligibility period qualified for PARTI rewards. A total of 30 million PARTI were allocated to the program.
After the airdrop, PARTI was listed on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.
Closing Thoughts
Particle Network is an innovative blockchain project focused on solving fragmentation issues in Web3. By introducing Universal Accounts, Universal Liquidity, and Universal Gas, it streamlines the multi-chain experience, making blockchain interactions more efficient and user-friendly.
With its modular Layer-1 architecture, Particle Network aims to provide a scalable and seamless environment for blockchain users and developers. Their goal is to improve interoperability and make blockchain technology more accessible to a wider audience.
Further Reading
What Is Chain Abstraction?
What Are Modular Blockchains?
What Are Appchains (Application-Specific Blockchains)?
Disclaimer: This article is for educational purposes only. This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
hi
Binance Academy
--
How Is Crypto Taxed in Different Countries?
Key Takeaways
Crypto taxes vary worldwide. Some countries treat crypto as property and charge capital gains tax, while others apply income tax. There are also countries that have no crypto taxes at all.
Taxable events include more than just selling. Trading, spending, or earning crypto through mining and staking can trigger taxes. Holding or transferring between personal wallets is usually tax-free.
Regulations are still evolving. Governments are introducing clearer tax rules and stricter reporting requirements, so it’s important for crypto traders and investors to stay updated.
Introduction
Cryptocurrency taxes work differently depending on where you live. While some countries charge high taxes on crypto, others don’t tax it at all. Each government has a different set of rules for classifying crypto, which affects how much tax you need to pay.
How Are Cryptocurrencies Taxed?
Most countries tax crypto based on how you use it. In many places, it’s treated like property or an investment asset, meaning capital gains tax applies when they are sold or traded (the same way as stocks). There are countries that also charge income tax if you earn crypto through mining, staking, or as payment for goods and services.
As mentioned, crypto taxation rules will vary from place to place. We will discuss some general rules before discussing different countries individually, but keep in mind that the information presented here is for educational purposes only. If you are unsure about your crypto tax situation, we recommend talking to a licensed tax advisor in your location.
When do you have to pay crypto taxes?
When trading or investing in crypto, common taxable events include:
Selling crypto for cash – If you sell Bitcoin or other crypto for cash, you might owe taxes on any profit you make.
Trading one crypto for another – Swapping one crypto for another is usually a taxable event (e.g., trading ETH for SOL).
Buying things with crypto – Paying for goods or services with crypto is like selling it, so you might owe taxes.
Getting paid in crypto – If you mine, stake, or get paid in crypto, it’s usually taxed as income.
When you don’t have to pay taxes on crypto
Buying and holding crypto – If you buy crypto and don’t sell it, there’s usually no tax involved.
Transferring between your wallets – Moving crypto between personal wallets is generally tax-free.
How Different Countries Tax Crypto
United States
The Internal Revenue Service (IRS) treats cryptocurrency as property. This means capital gains tax applies when crypto is sold, traded, or spent. The tax rate depends on how long the crypto is held:
Short-term gains (held under a year) – Taxed like regular income (10% to 37%).
Long-term gains (held over a year) – Taxed at 0%, 15%, or 20%, depending on your income.
If crypto is earned as income, such as through mining or staking, it is subject to income tax at the person’s regular tax rate. The IRS also requires crypto brokers to report transactions on Form 1099-DA starting in 2025.
Crypto losses can be used to offset gains, and investors can deduct up to $3,000 per year against ordinary income.
Canada
Canada treats crypto as a commodity, and taxes depend on how you use it:
Selling or trading crypto – Capital gains tax applies, but only 50% of the profit is taxable.
Earning crypto – Considered business income and taxed at rates up to 33% federally plus provincial taxes.
Losses from crypto trades can help reduce your taxable income in future years.
United Kingdom
The UK treats crypto as property. Capital gain tax applies and varies according to your income bracket:
Basic rate taxpayers – 10% tax on gains above the annual allowance (£3,000 from 2024 onward).
Higher rate taxpayers – 20% tax on gains.
If you earn crypto through mining, staking, or as payment, it’s taxed as income. You can also use losses to reduce your taxable gains.
Australia
In Australia, the Australian Taxation Office (ATO) considers crypto as property and applies capital gains tax when you sell or trade it:
Short-term gains (less than a year) – Taxed as regular income (up to 45%).
Long-term gains (over a year) – Get a 50% tax discount.
Earning crypto is treated as income, and tax rates depend on the individual’s earnings. Crypto losses can also be carried forward to offset future gains.
Japan
Japan has one of the highest crypto tax rates in the world. The government classifies crypto gains as miscellaneous income, meaning:
Tax rates range from 15% to 55%, depending on income.
Losses can’t be used to reduce other taxable income.
Japan’s tax structure makes it less attractive for crypto investors. However, some reforms are being discussed to make the system more favorable for long-term investors.
Countries That Don’t Tax Crypto
Some countries do not tax crypto at all, making them popular among investors. Examples include the United Arab Emirates, Malta, and the Cayman Islands.
United Arab Emirates (UAE)
The UAE doesn’t charge personal income tax or capital gains tax on crypto. However, businesses dealing with crypto may be subject to a 9% corporate tax.
The UAE has positioned itself as a crypto-friendly hub, attracting many blockchain enthusiasts and companies.
Malta
Malta offers a 0% tax rate on long-term crypto gains but applies income tax (15%-35%) on short-term trades. The country is known for its clear regulatory framework, which encourages crypto businesses to operate within its jurisdiction.
Cayman Islands
The Cayman Islands has no income, capital gains, or corporate taxes on crypto, making it a tax haven for investors. The region has become a popular location for crypto hedge funds and blockchain startups.
What’s Next for Crypto Taxes?
Crypto taxes are changing as governments try to catch up with the industry. Some key trends include:
Clearer regulations – More countries are setting clear tax rules for crypto investors.
Stronger reporting requirements – Many governments are requiring crypto exchanges to report user transactions to tax authorities.
Global tax standards – There may be international guidelines in the future to prevent tax evasion.
As rules change, it’s important to stay updated on your country’s tax laws to avoid penalties.
Closing Thoughts
Crypto taxes vary a lot depending on where you live. Some places have high taxes, while others don’t tax crypto at all. If you invest or trade crypto, make sure you know your country’s tax rules. Keeping track of transactions and consulting a tax expert can help you stay compliant and avoid unnecessary fines and penalties.
Understanding crypto taxes doesn’t have to be complicated. With the right information, you can make smart financial decisions and avoid surprises when tax season comes around.
Further Reading
How Is Cryptocurrency Taxed?
Crypto Day Trading vs. HODLing: Which Strategy Is Best for You?
How to Trade Crypto Responsibly
Disclaimer: Binance does not provide tax or financial advice. Depending on the country's tax framework, when you trade commodities and the event produces capital gains (or losses), you may have to pay taxes. The regulatory framework for taxation of cryptocurrencies differs from country to country, hence we strongly advise you to contact your personal tax advisor for further information about your personal tax circumstances. It is your personal responsibility to select the correct tax jurisdiction that applies to you.
This article is for educational purposes only. This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Crypto taxes vary worldwide. Some countries treat crypto as property and charge capital gains tax, while others apply income tax. There are also countries that have no crypto taxes at all.
Taxable events include more than just selling. Trading, spending, or earning crypto through mining and staking can trigger taxes. Holding or transferring between personal wallets is usually tax-free.
Regulations are still evolving. Governments are introducing clearer tax rules and stricter reporting requirements, so it’s important for crypto traders and investors to stay updated.
Introduction
Cryptocurrency taxes work differently depending on where you live. While some countries charge high taxes on crypto, others don’t tax it at all. Each government has a different set of rules for classifying crypto, which affects how much tax you need to pay.
How Are Cryptocurrencies Taxed?
Most countries tax crypto based on how you use it. In many places, it’s treated like property or an investment asset, meaning capital gains tax applies when they are sold or traded (the same way as stocks). There are countries that also charge income tax if you earn crypto through mining, staking, or as payment for goods and services.
As mentioned, crypto taxation rules will vary from place to place. We will discuss some general rules before discussing different countries individually, but keep in mind that the information presented here is for educational purposes only. If you are unsure about your crypto tax situation, we recommend talking to a licensed tax advisor in your location.
When do you have to pay crypto taxes?
When trading or investing in crypto, common taxable events include:
Selling crypto for cash – If you sell Bitcoin or other crypto for cash, you might owe taxes on any profit you make.
Trading one crypto for another – Swapping one crypto for another is usually a taxable event (e.g., trading ETH for SOL).
Buying things with crypto – Paying for goods or services with crypto is like selling it, so you might owe taxes.
Getting paid in crypto – If you mine, stake, or get paid in crypto, it’s usually taxed as income.
When you don’t have to pay taxes on crypto
Buying and holding crypto – If you buy crypto and don’t sell it, there’s usually no tax involved.
Transferring between your wallets – Moving crypto between personal wallets is generally tax-free.
How Different Countries Tax Crypto
United States
The Internal Revenue Service (IRS) treats cryptocurrency as property. This means capital gains tax applies when crypto is sold, traded, or spent. The tax rate depends on how long the crypto is held:
Short-term gains (held under a year) – Taxed like regular income (10% to 37%).
Long-term gains (held over a year) – Taxed at 0%, 15%, or 20%, depending on your income.
If crypto is earned as income, such as through mining or staking, it is subject to income tax at the person’s regular tax rate. The IRS also requires crypto brokers to report transactions on Form 1099-DA starting in 2025.
Crypto losses can be used to offset gains, and investors can deduct up to $3,000 per year against ordinary income.
Canada
Canada treats crypto as a commodity, and taxes depend on how you use it:
Selling or trading crypto – Capital gains tax applies, but only 50% of the profit is taxable.
Earning crypto – Considered business income and taxed at rates up to 33% federally plus provincial taxes.
Losses from crypto trades can help reduce your taxable income in future years.
United Kingdom
The UK treats crypto as property. Capital gain tax applies and varies according to your income bracket:
Basic rate taxpayers – 10% tax on gains above the annual allowance (£3,000 from 2024 onward).
Higher rate taxpayers – 20% tax on gains.
If you earn crypto through mining, staking, or as payment, it’s taxed as income. You can also use losses to reduce your taxable gains.
Australia
In Australia, the Australian Taxation Office (ATO) considers crypto as property and applies capital gains tax when you sell or trade it:
Short-term gains (less than a year) – Taxed as regular income (up to 45%).
Long-term gains (over a year) – Get a 50% tax discount.
Earning crypto is treated as income, and tax rates depend on the individual’s earnings. Crypto losses can also be carried forward to offset future gains.
Japan
Japan has one of the highest crypto tax rates in the world. The government classifies crypto gains as miscellaneous income, meaning:
Tax rates range from 15% to 55%, depending on income.
Losses can’t be used to reduce other taxable income.
Japan’s tax structure makes it less attractive for crypto investors. However, some reforms are being discussed to make the system more favorable for long-term investors.
Countries That Don’t Tax Crypto
Some countries do not tax crypto at all, making them popular among investors. Examples include the United Arab Emirates, Malta, and the Cayman Islands.
United Arab Emirates (UAE)
The UAE doesn’t charge personal income tax or capital gains tax on crypto. However, businesses dealing with crypto may be subject to a 9% corporate tax.
The UAE has positioned itself as a crypto-friendly hub, attracting many blockchain enthusiasts and companies.
Malta
Malta offers a 0% tax rate on long-term crypto gains but applies income tax (15%-35%) on short-term trades. The country is known for its clear regulatory framework, which encourages crypto businesses to operate within its jurisdiction.
Cayman Islands
The Cayman Islands has no income, capital gains, or corporate taxes on crypto, making it a tax haven for investors. The region has become a popular location for crypto hedge funds and blockchain startups.
What’s Next for Crypto Taxes?
Crypto taxes are changing as governments try to catch up with the industry. Some key trends include:
Clearer regulations – More countries are setting clear tax rules for crypto investors.
Stronger reporting requirements – Many governments are requiring crypto exchanges to report user transactions to tax authorities.
Global tax standards – There may be international guidelines in the future to prevent tax evasion.
As rules change, it’s important to stay updated on your country’s tax laws to avoid penalties.
Closing Thoughts
Crypto taxes vary a lot depending on where you live. Some places have high taxes, while others don’t tax crypto at all. If you invest or trade crypto, make sure you know your country’s tax rules. Keeping track of transactions and consulting a tax expert can help you stay compliant and avoid unnecessary fines and penalties.
Understanding crypto taxes doesn’t have to be complicated. With the right information, you can make smart financial decisions and avoid surprises when tax season comes around.
Further Reading
How Is Cryptocurrency Taxed?
Crypto Day Trading vs. HODLing: Which Strategy Is Best for You?
How to Trade Crypto Responsibly
Disclaimer: Binance does not provide tax or financial advice. Depending on the country's tax framework, when you trade commodities and the event produces capital gains (or losses), you may have to pay taxes. The regulatory framework for taxation of cryptocurrencies differs from country to country, hence we strongly advise you to contact your personal tax advisor for further information about your personal tax circumstances. It is your personal responsibility to select the correct tax jurisdiction that applies to you.
This article is for educational purposes only. This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
hi
Binance Academy
--
How Can Tariffs Impact the Crypto Markets?
Key Takeaways
Tariffs are taxes that governments put on imported goods. The idea is to make foreign products more expensive so that local businesses can compete better.
In the short term, tariffs often create uncertainty and market volatility. Depending on how they are announced and implemented, investors may get out of riskier assets like stocks and crypto, leading to price drops.
Tariffs on imported mining hardware and semiconductor chips may also increase operational expenses for miners who rely on imported products.
In the medium and long term, there is a possibility of crypto assets, in particular Bitcoin, becoming more attractive as a hedge against inflation and weaker fiat currencies.
What Are Tariffs?
Tariffs are taxes imposed on imported goods and services, often used by governments to protect domestic industries, generate revenue, or retaliate against perceived unfair trade practices.
While they can provide short-term advantages for specific industries, tariffs may also lead to increased prices for consumers and businesses, trade tensions, and economic disruptions.
In a globalized economy, tariffs affect not just the industries directly targeted but also the broader financial markets. They can influence inflation rates, investor sentiment, and supply chains, which in turn can affect currencies, commodities, and cryptocurrencies.
The Role of US Tariffs in Global Trade
The United States has frequently used tariffs as a trade policy tool, particularly under the Trump administration, which imposed sweeping tariffs on goods from China, the European Union, Canada, and other trading partners. The recent "Liberation Day" tariffs of 2025 have intensified global trade disputes, affecting major industries and financial markets.
These policies have already affected industries like manufacturing, technology, and agriculture. But what about crypto? Even though digital currencies don’t work the exact same way as traditional financial assets, they still react to economic changes. Let’s take a closer look at how tariffs can impact the crypto world.
How Tariffs Can Influence the Crypto Market
The impact of tariffs on financial markets and cryptocurrencies can vary greatly depending on how they are calculated, announced, and implemented. There may also be a significant difference between short-term and long-term market reactions.
For example, in the short term, markets may react negatively due to rising levels of fear, uncertainty, and doubt. But that doesn’t necessarily mean investors will continue to be bearish in the long term. It depends, among other things, on how clearly the governments communicate their plans and how well these plans are executed.
1. Investor sentiment and market volatility
Tariffs create economic uncertainty, leading to volatility in financial markets. Cryptocurrencies, particularly Bitcoin, have often been perceived as high-risk assets. Rising trade tensions impact market sentiment, causing investors to move their capital away from crypto assets toward safer options like gold or government bonds.
For example, in 2025, following the announcement of increased US tariffs on Chinese imports, bitcoin’s price experienced a sharp decline. This suggests that, in the short term, tariffs can negatively impact cryptocurrency prices as uncertainty increases and investors become more risk-averse.
2. Inflation, interest rates and crypto prices
Higher tariffs typically lead to increased costs for imported goods. In situations like this, companies usually pass the extra costs onto consumers, making everyday goods more expensive and leading to inflation.
To fight inflation, central banks, including the Federal Reserve, often raise interest rates. Higher interest rates make borrowing money more expensive, which means less cash is flowing into investments—including crypto.
But there’s another side to this. If inflation gets really bad and people lose trust in traditional currencies, they might turn to crypto, especially Bitcoin, as a way to protect their money. In countries with hyperinflation and weaker economies, this has already happened.
The long-term effect depends on how aggressively central banks respond to tariff-induced inflation and whether crypto investors view bitcoin as a good store of value similar to gold.
3. Crypto mining costs could rise
Many cryptocurrency mining operations rely on imported hardware, particularly from China, where a significant portion of ASIC miners and GPUs are produced.
If the US places higher tariffs on Chinese tech products, it could drive up the cost of mining hardware, making it more expensive to run a mining operation. This could also encourage miners to relocate to regions with lower operational costs and fewer trade restrictions.
In addition, if tariffs target semiconductor chips (which are crucial for mining rigs), the impact could be even bigger.
4. Currency devaluation and crypto adoption
In certain cases, trade wars and high tariffs can weaken national currencies, making cryptocurrencies a more appealing alternative. In countries experiencing rapid currency devaluation, citizens often turn to bitcoin and stablecoins to preserve wealth.
For instance, when Argentina and Turkey faced economic instability, their crypto adoption rates surged as residents sought alternatives to depreciating local currencies. If US tariffs lead to similar economic instability in affected countries, crypto adoption could rise in the long term.
Is Bitcoin a Safe Haven or Just Another Risky Asset?
Some investors treat it like a "safe haven" asset—especially the early adopters. Others see it as a speculative investment that’s as risky as stocks.
Historically, Bitcoin has followed stock market trends during periods of economic stress. When the stock market drops due to tariffs, Bitcoin often does too. But if the global economy worsens, Bitcoin could take on more of a "gold-like" role, attracting investors looking for a hedge against inflation and currency devaluation.
The long-term impact of tariffs on bitcoin depends on whether it is seen primarily as a speculative asset or as a hedge against macroeconomic risks.
Closing Thoughts
While tariffs mainly target goods and services, their effects go far beyond that. They can shake up investor confidence, drive up mining costs, and even push more people toward digital assets. Trade policies can certainly influence how people invest, where companies do business, and even what kinds of currency people trust.
In the short term, increased uncertainty can lead to price drops as investors move away from risky assets. In the medium and long term, there is a possibility of Bitcoin becoming more attractive as a “store of value” asset.
Further Reading
Is Bitcoin a Store of Value?
What Is Monetary Policy?
What Is the Crypto Fear and Greed Index?
This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Tariffs are taxes that governments put on imported goods. The idea is to make foreign products more expensive so that local businesses can compete better.
In the short term, tariffs often create uncertainty and market volatility. Depending on how they are announced and implemented, investors may get out of riskier assets like stocks and crypto, leading to price drops.
Tariffs on imported mining hardware and semiconductor chips may also increase operational expenses for miners who rely on imported products.
In the medium and long term, there is a possibility of crypto assets, in particular Bitcoin, becoming more attractive as a hedge against inflation and weaker fiat currencies.
What Are Tariffs?
Tariffs are taxes imposed on imported goods and services, often used by governments to protect domestic industries, generate revenue, or retaliate against perceived unfair trade practices.
While they can provide short-term advantages for specific industries, tariffs may also lead to increased prices for consumers and businesses, trade tensions, and economic disruptions.
In a globalized economy, tariffs affect not just the industries directly targeted but also the broader financial markets. They can influence inflation rates, investor sentiment, and supply chains, which in turn can affect currencies, commodities, and cryptocurrencies.
The Role of US Tariffs in Global Trade
The United States has frequently used tariffs as a trade policy tool, particularly under the Trump administration, which imposed sweeping tariffs on goods from China, the European Union, Canada, and other trading partners. The recent "Liberation Day" tariffs of 2025 have intensified global trade disputes, affecting major industries and financial markets.
These policies have already affected industries like manufacturing, technology, and agriculture. But what about crypto? Even though digital currencies don’t work the exact same way as traditional financial assets, they still react to economic changes. Let’s take a closer look at how tariffs can impact the crypto world.
How Tariffs Can Influence the Crypto Market
The impact of tariffs on financial markets and cryptocurrencies can vary greatly depending on how they are calculated, announced, and implemented. There may also be a significant difference between short-term and long-term market reactions.
For example, in the short term, markets may react negatively due to rising levels of fear, uncertainty, and doubt. But that doesn’t necessarily mean investors will continue to be bearish in the long term. It depends, among other things, on how clearly the governments communicate their plans and how well these plans are executed.
1. Investor sentiment and market volatility
Tariffs create economic uncertainty, leading to volatility in financial markets. Cryptocurrencies, particularly Bitcoin, have often been perceived as high-risk assets. Rising trade tensions impact market sentiment, causing investors to move their capital away from crypto assets toward safer options like gold or government bonds.
For example, in 2025, following the announcement of increased US tariffs on Chinese imports, bitcoin’s price experienced a sharp decline. This suggests that, in the short term, tariffs can negatively impact cryptocurrency prices as uncertainty increases and investors become more risk-averse.
2. Inflation, interest rates and crypto prices
Higher tariffs typically lead to increased costs for imported goods. In situations like this, companies usually pass the extra costs onto consumers, making everyday goods more expensive and leading to inflation.
To fight inflation, central banks, including the Federal Reserve, often raise interest rates. Higher interest rates make borrowing money more expensive, which means less cash is flowing into investments—including crypto.
But there’s another side to this. If inflation gets really bad and people lose trust in traditional currencies, they might turn to crypto, especially Bitcoin, as a way to protect their money. In countries with hyperinflation and weaker economies, this has already happened.
The long-term effect depends on how aggressively central banks respond to tariff-induced inflation and whether crypto investors view bitcoin as a good store of value similar to gold.
3. Crypto mining costs could rise
Many cryptocurrency mining operations rely on imported hardware, particularly from China, where a significant portion of ASIC miners and GPUs are produced.
If the US places higher tariffs on Chinese tech products, it could drive up the cost of mining hardware, making it more expensive to run a mining operation. This could also encourage miners to relocate to regions with lower operational costs and fewer trade restrictions.
In addition, if tariffs target semiconductor chips (which are crucial for mining rigs), the impact could be even bigger.
4. Currency devaluation and crypto adoption
In certain cases, trade wars and high tariffs can weaken national currencies, making cryptocurrencies a more appealing alternative. In countries experiencing rapid currency devaluation, citizens often turn to bitcoin and stablecoins to preserve wealth.
For instance, when Argentina and Turkey faced economic instability, their crypto adoption rates surged as residents sought alternatives to depreciating local currencies. If US tariffs lead to similar economic instability in affected countries, crypto adoption could rise in the long term.
Is Bitcoin a Safe Haven or Just Another Risky Asset?
Some investors treat it like a "safe haven" asset—especially the early adopters. Others see it as a speculative investment that’s as risky as stocks.
Historically, Bitcoin has followed stock market trends during periods of economic stress. When the stock market drops due to tariffs, Bitcoin often does too. But if the global economy worsens, Bitcoin could take on more of a "gold-like" role, attracting investors looking for a hedge against inflation and currency devaluation.
The long-term impact of tariffs on bitcoin depends on whether it is seen primarily as a speculative asset or as a hedge against macroeconomic risks.
Closing Thoughts
While tariffs mainly target goods and services, their effects go far beyond that. They can shake up investor confidence, drive up mining costs, and even push more people toward digital assets. Trade policies can certainly influence how people invest, where companies do business, and even what kinds of currency people trust.
In the short term, increased uncertainty can lead to price drops as investors move away from risky assets. In the medium and long term, there is a possibility of Bitcoin becoming more attractive as a “store of value” asset.
Further Reading
Is Bitcoin a Store of Value?
What Is Monetary Policy?
What Is the Crypto Fear and Greed Index?
This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
ok
Binance Academy
--
What Is M2 and How Does It Relate to Markets?
Key Takeaways
M2 (money supply) is a way to measure how much money is moving around in the economy. It includes money that people use every day, like cash and money in checking accounts.
M2 also includes money that isn’t used as often but can still be spent fairly quickly, like savings accounts and money market funds.
M2 is an important economic indicator because it helps economists and policymakers understand how much money is available for spending and investing.
What Is M2 (Money Supply)?
M2 is a way to measure the total money circulating in an economy. It includes both highly liquid money, such as cash and checking deposits (M1), as well as less liquid assets, such as savings accounts, time deposits, and money market funds.
Economists, government officials, and investors look at M2 to understand how healthy the economy is. If there’s a lot of money out there, people and businesses are more likely to spend more. If there’s less money available, spending will naturally slow down.
What Is M2 Made of?
The US Federal Reserve calculates the M2 using multiple components, including cash and money in checking and savings accounts. It also includes certificates of deposits (CDs) and other assets that can be easily converted to cash.
1. Cash and checking accounts (also called M1)
This is the most basic and liquid form of money. It includes:
Physical currency (coins and paper money).
Money in checking accounts, which can be used with a debit card or checks
Traveler’s checks (less common today but still included in M1).
Other checkable deposits (OCDs). These are highly liquid accounts that can be used to make payments by check or debit card.
2. Savings Accounts
These are bank accounts where people keep money they don’t need right away. While savings accounts usually pay interest, they can have limits on how often you can take money out.
3. Time deposits
These are also called certificates of deposit (CDs). You agree to leave your money in the bank for a certain amount of time, and in return, the bank pays you interest. These deposits are usually under $100,000.
4. Money market funds
These are a type of mutual fund that invests in safe, short-term investments. They usually offer higher interest than savings accounts but have some restrictions on how you can use your money.
How Does M2 Work?
M2 reflects the total money available in an economy, including funds that can be easily converted into cash. If M2 is growing, it means more money is available. People might be saving more, borrowing more, or receiving more income. This often leads to more shopping, investing, and business activity.
If M2 is shrinking or not growing much, it may suggest that people are spending less or saving more. With less money in circulation, the economy tends to slow down. Businesses may earn less, and unemployment may rise.
What Changes M2?
1. Central bank decisions
Through monetary policies, central banks manage interest rates and set rules for how much money banks must keep in reserve. When the Fed lowers interest rates, borrowing becomes cheaper, meaning people and businesses are more likely to take loans, adding money to M2.
2. Government spending
If the government gives out stimulus checks or boosts public spending, that can increase the money supply. The opposite is true if the government cuts spending or raises taxes.
3. Bank lending
When banks give out more loans, money is created and added to the economy. This increases M2. When banks lend less, M2 may grow more slowly or even shrink.
4. Consumer and business behavior
If people and companies decide to save more and spend less, the money sits in savings accounts instead of circulating. That can slow down M2 growth.
M2 and Inflation
When more money is available, people and businesses tend to spend more. If this spending grows faster than the economy’s ability to produce goods and services, prices may rise, leading to inflation.
On the other hand, if M2 stops growing or starts shrinking, inflation may slow down. But if it shrinks too much, it could also mean the economy is slowing or even heading into a recession.
That’s why central banks and policymakers watch M2 closely. If they think M2 is growing too fast, they might raise interest rates to cool off the economy. If it’s shrinking too much, they might lower rates to encourage spending.
How M2 Affects Financial Markets
M2 has a significant impact on financial markets, including cryptocurrencies, stocks, bonds, and interest rates.
Cryptocurrencies
When M2 is rising and interest rates are low, some investors may move money into cryptocurrencies, looking for higher returns. During periods of easy money, crypto prices often go up. But, if M2 contracts and borrowing becomes more expensive, people may pull out of riskier assets like crypto, causing prices to drop.
Stocks
The effects of M2 on stocks are similar to those of crypto markets. When M2 is growing, people have more money to trade or invest in stocks. This tends to push prices up. If M2 slows down or shrinks, markets are more likely to fall.
Bond market
Bonds are often seen as safer investments. When M2 grows, and interest rates are low, bonds usually become more attractive as investors look for more reliable returns. If M2 shrinks and interest rates rise, we can expect bond prices to fall.
Interest rates
Interest rates often move in the opposite direction of M2. If M2 is growing too fast, central banks might raise interest rates to slow things down and fight inflation. If M2 is shrinking too much, they may lower rates to support spending and borrowing.
A Real-Life Example: COVID-19 and M2
During the COVID-19 pandemic, the US government sent out stimulus checks, increased unemployment benefits, and the Federal Reserve lowered interest rates. All of this led to a huge increase in M2.
By early 2021, M2 was growing by nearly 27% compared to the year before. This was a record-high increase. But in 2022, as the Fed raised interest rates to fight inflation, M2 growth slowed down, turning negative in late 2022. That contraction signaled a cooling economy and a potential decline in inflation.
Why M2 Matters
M2 is a simple but powerful tool for understanding the economy. If it’s growing fast, it could mean inflation is coming. If it’s shrinking, it could be a warning of slower growth or even a recession.
People who make decisions about interest rates, taxes, and spending use M2 to guide their choices. Investors also watch M2 to get a sense of where markets might be headed.
Closing Thoughts
M2 is more than just a number. It shows how much money is in the system and ready to be used. It includes everyday money like cash and checking accounts, plus near-money like savings and CDs.
Watching M2 helps us understand where the economy might be going. Fast growth can bring more jobs and spending but also higher prices. Slower growth might help control inflation but can also slow down businesses.
Further Reading
Interest Rates Explained
What Is Monetary Policy?
What Are Bonds and How Do They Work?
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
M2 (money supply) is a way to measure how much money is moving around in the economy. It includes money that people use every day, like cash and money in checking accounts.
M2 also includes money that isn’t used as often but can still be spent fairly quickly, like savings accounts and money market funds.
M2 is an important economic indicator because it helps economists and policymakers understand how much money is available for spending and investing.
What Is M2 (Money Supply)?
M2 is a way to measure the total money circulating in an economy. It includes both highly liquid money, such as cash and checking deposits (M1), as well as less liquid assets, such as savings accounts, time deposits, and money market funds.
Economists, government officials, and investors look at M2 to understand how healthy the economy is. If there’s a lot of money out there, people and businesses are more likely to spend more. If there’s less money available, spending will naturally slow down.
What Is M2 Made of?
The US Federal Reserve calculates the M2 using multiple components, including cash and money in checking and savings accounts. It also includes certificates of deposits (CDs) and other assets that can be easily converted to cash.
1. Cash and checking accounts (also called M1)
This is the most basic and liquid form of money. It includes:
Physical currency (coins and paper money).
Money in checking accounts, which can be used with a debit card or checks
Traveler’s checks (less common today but still included in M1).
Other checkable deposits (OCDs). These are highly liquid accounts that can be used to make payments by check or debit card.
2. Savings Accounts
These are bank accounts where people keep money they don’t need right away. While savings accounts usually pay interest, they can have limits on how often you can take money out.
3. Time deposits
These are also called certificates of deposit (CDs). You agree to leave your money in the bank for a certain amount of time, and in return, the bank pays you interest. These deposits are usually under $100,000.
4. Money market funds
These are a type of mutual fund that invests in safe, short-term investments. They usually offer higher interest than savings accounts but have some restrictions on how you can use your money.
How Does M2 Work?
M2 reflects the total money available in an economy, including funds that can be easily converted into cash. If M2 is growing, it means more money is available. People might be saving more, borrowing more, or receiving more income. This often leads to more shopping, investing, and business activity.
If M2 is shrinking or not growing much, it may suggest that people are spending less or saving more. With less money in circulation, the economy tends to slow down. Businesses may earn less, and unemployment may rise.
What Changes M2?
1. Central bank decisions
Through monetary policies, central banks manage interest rates and set rules for how much money banks must keep in reserve. When the Fed lowers interest rates, borrowing becomes cheaper, meaning people and businesses are more likely to take loans, adding money to M2.
2. Government spending
If the government gives out stimulus checks or boosts public spending, that can increase the money supply. The opposite is true if the government cuts spending or raises taxes.
3. Bank lending
When banks give out more loans, money is created and added to the economy. This increases M2. When banks lend less, M2 may grow more slowly or even shrink.
4. Consumer and business behavior
If people and companies decide to save more and spend less, the money sits in savings accounts instead of circulating. That can slow down M2 growth.
M2 and Inflation
When more money is available, people and businesses tend to spend more. If this spending grows faster than the economy’s ability to produce goods and services, prices may rise, leading to inflation.
On the other hand, if M2 stops growing or starts shrinking, inflation may slow down. But if it shrinks too much, it could also mean the economy is slowing or even heading into a recession.
That’s why central banks and policymakers watch M2 closely. If they think M2 is growing too fast, they might raise interest rates to cool off the economy. If it’s shrinking too much, they might lower rates to encourage spending.
How M2 Affects Financial Markets
M2 has a significant impact on financial markets, including cryptocurrencies, stocks, bonds, and interest rates.
Cryptocurrencies
When M2 is rising and interest rates are low, some investors may move money into cryptocurrencies, looking for higher returns. During periods of easy money, crypto prices often go up. But, if M2 contracts and borrowing becomes more expensive, people may pull out of riskier assets like crypto, causing prices to drop.
Stocks
The effects of M2 on stocks are similar to those of crypto markets. When M2 is growing, people have more money to trade or invest in stocks. This tends to push prices up. If M2 slows down or shrinks, markets are more likely to fall.
Bond market
Bonds are often seen as safer investments. When M2 grows, and interest rates are low, bonds usually become more attractive as investors look for more reliable returns. If M2 shrinks and interest rates rise, we can expect bond prices to fall.
Interest rates
Interest rates often move in the opposite direction of M2. If M2 is growing too fast, central banks might raise interest rates to slow things down and fight inflation. If M2 is shrinking too much, they may lower rates to support spending and borrowing.
A Real-Life Example: COVID-19 and M2
During the COVID-19 pandemic, the US government sent out stimulus checks, increased unemployment benefits, and the Federal Reserve lowered interest rates. All of this led to a huge increase in M2.
By early 2021, M2 was growing by nearly 27% compared to the year before. This was a record-high increase. But in 2022, as the Fed raised interest rates to fight inflation, M2 growth slowed down, turning negative in late 2022. That contraction signaled a cooling economy and a potential decline in inflation.
Why M2 Matters
M2 is a simple but powerful tool for understanding the economy. If it’s growing fast, it could mean inflation is coming. If it’s shrinking, it could be a warning of slower growth or even a recession.
People who make decisions about interest rates, taxes, and spending use M2 to guide their choices. Investors also watch M2 to get a sense of where markets might be headed.
Closing Thoughts
M2 is more than just a number. It shows how much money is in the system and ready to be used. It includes everyday money like cash and checking accounts, plus near-money like savings and CDs.
Watching M2 helps us understand where the economy might be going. Fast growth can bring more jobs and spending but also higher prices. Slower growth might help control inflation but can also slow down businesses.
Further Reading
Interest Rates Explained
What Is Monetary Policy?
What Are Bonds and How Do They Work?
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
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What Is WalletConnect (WCT)?
Key Takeaways
WalletConnect makes it easy to connect crypto wallets to decentralized apps using QR codes or deep links, keeping users in control without exposing private keys or relying on browser extensions.
The protocol supports a wide range of blockchain networks, including Ethereum, Solana, Polkadot, Cosmos, and Bitcoin.
The WalletConnect ecosystem has WCT as its utility token, which can be used for staking, governance, and to receive rewards.
What Is WalletConnect?
WalletConnect is an open-source protocol that makes it easy for crypto wallets to connect with decentralized apps (DApps). Instead of relying on browser extensions or copy-pasting wallet addresses, WalletConnect lets you link your wallet to a DApp with a quick QR code scan or deep link. WalletConnect works across many blockchains, and aims to make Web3 more user-friendly and secure.
Originally created to address fragmented and vulnerable DApp-wallet interactions, WalletConnect has grown into a protocol and a network that supports millions of users and thousands of applications.
How WalletConnect Works
At its foundation, WalletConnect acts as a communication layer that enables wallet applications to interact with DApps without exposing sensitive information, such as private keys.
The protocol supports encrypted messaging through a session established by scanning a QR code or clicking a deep link. Once connected, users can approve or reject transactions directly from their wallets, which remain in their full control throughout the session.
WalletConnect supports multiple blockchain networks, including Ethereum, Solana, Cosmos, Polkadot, and Bitcoin.
WalletConnect is built on three key pieces:
Network: This is the system of nodes that pass messages between your wallet and the app you're using. These nodes are run by different groups to keep things decentralized.
SDKs: Developers use WalletConnect SDKs to add the connection feature to their wallets and DApps. The SDKs handle all the technical stuff behind the scenes.
Standards: WalletConnect uses standard rules for how messages are sent and received, which makes it easier for apps and wallets to work together smoothly.
The WCT Token
WalletConnect has its own token called WCT. It is an ERC-20 token with a total supply of 1 billion tokens. WCT was launched on the Optimism network and is used for multiple purposes within the WalletConnect ecosystem:
Governance: WCT holders can help decide how the network evolves, from protocol upgrades to fee structures.
Staking: Users can stake WCT tokens to help secure the network and earn rewards. Staking durations range from one week to two years, with incentives increasing with the length of the commitment.
Performance-based rewards: Node operators and wallet providers are rewarded in WCT based on metrics such as uptime, latency, and the number of successful connections they facilitate.
Future fees: While WalletConnect doesn’t charge fees yet, WCT might be used for transaction fees later on if the community votes for it.
WCT is an ERC-20 token with a total supply of 1 billion tokens.
WCT on Binance Launchpool
On April 10, 2025, Binance announced WCT as the 67th project on the Binance Launchpool. Users who locked their BNB, FDUSD, and USDC during the farming period were eligible to receive WCT rewards. A total of 40 million WCT were allocated to the program, accounting for 4% of the total token supply.
After the farming period, WCT was listed for trading on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.
WalletGuide and Certification
The WalletConnect team also runs WalletGuide, a project that reviews and lists wallets that meet certain quality and security standards. Wallets can earn certification, which makes them more trustworthy in the eyes of users and developers.
Adoption and Growth
WalletConnect has seen significant adoption since its launch. According to their website, the project has made over 240 million connections to serve more than 38 million unique active wallets. Over 57,000 decentralized applications have integrated the protocol, which illustrates its utility and interoperability within the Web3 space.
Funding and Development
The WalletConnect Foundation has raised $10 million from four consecutive oversubscribed token sales. The funds will enable the WalletConnect Foundation to expand operations, grow its team and support ecosystem initiatives — benefiting developers, node operators and strategic partners.
Closing Thoughts
WalletConnect started as a simple way to connect wallets to DApps, but it’s grown into a whole ecosystem with its own token, governance system, and network infrastructure. With support for multiple blockchains and a strong user base, the project is enabling secure and efficient communication across multiple Web3 platforms.
Further Reading
Your Guide to Binance Launchpad and Launchpool
How to Set Up a Crypto Wallet
What Are Decentralized Applications (DApps)?
Disclaimer: This article is for educational purposes only. This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
WalletConnect makes it easy to connect crypto wallets to decentralized apps using QR codes or deep links, keeping users in control without exposing private keys or relying on browser extensions.
The protocol supports a wide range of blockchain networks, including Ethereum, Solana, Polkadot, Cosmos, and Bitcoin.
The WalletConnect ecosystem has WCT as its utility token, which can be used for staking, governance, and to receive rewards.
What Is WalletConnect?
WalletConnect is an open-source protocol that makes it easy for crypto wallets to connect with decentralized apps (DApps). Instead of relying on browser extensions or copy-pasting wallet addresses, WalletConnect lets you link your wallet to a DApp with a quick QR code scan or deep link. WalletConnect works across many blockchains, and aims to make Web3 more user-friendly and secure.
Originally created to address fragmented and vulnerable DApp-wallet interactions, WalletConnect has grown into a protocol and a network that supports millions of users and thousands of applications.
How WalletConnect Works
At its foundation, WalletConnect acts as a communication layer that enables wallet applications to interact with DApps without exposing sensitive information, such as private keys.
The protocol supports encrypted messaging through a session established by scanning a QR code or clicking a deep link. Once connected, users can approve or reject transactions directly from their wallets, which remain in their full control throughout the session.
WalletConnect supports multiple blockchain networks, including Ethereum, Solana, Cosmos, Polkadot, and Bitcoin.
WalletConnect is built on three key pieces:
Network: This is the system of nodes that pass messages between your wallet and the app you're using. These nodes are run by different groups to keep things decentralized.
SDKs: Developers use WalletConnect SDKs to add the connection feature to their wallets and DApps. The SDKs handle all the technical stuff behind the scenes.
Standards: WalletConnect uses standard rules for how messages are sent and received, which makes it easier for apps and wallets to work together smoothly.
The WCT Token
WalletConnect has its own token called WCT. It is an ERC-20 token with a total supply of 1 billion tokens. WCT was launched on the Optimism network and is used for multiple purposes within the WalletConnect ecosystem:
Governance: WCT holders can help decide how the network evolves, from protocol upgrades to fee structures.
Staking: Users can stake WCT tokens to help secure the network and earn rewards. Staking durations range from one week to two years, with incentives increasing with the length of the commitment.
Performance-based rewards: Node operators and wallet providers are rewarded in WCT based on metrics such as uptime, latency, and the number of successful connections they facilitate.
Future fees: While WalletConnect doesn’t charge fees yet, WCT might be used for transaction fees later on if the community votes for it.
WCT is an ERC-20 token with a total supply of 1 billion tokens.
WCT on Binance Launchpool
On April 10, 2025, Binance announced WCT as the 67th project on the Binance Launchpool. Users who locked their BNB, FDUSD, and USDC during the farming period were eligible to receive WCT rewards. A total of 40 million WCT were allocated to the program, accounting for 4% of the total token supply.
After the farming period, WCT was listed for trading on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.
WalletGuide and Certification
The WalletConnect team also runs WalletGuide, a project that reviews and lists wallets that meet certain quality and security standards. Wallets can earn certification, which makes them more trustworthy in the eyes of users and developers.
Adoption and Growth
WalletConnect has seen significant adoption since its launch. According to their website, the project has made over 240 million connections to serve more than 38 million unique active wallets. Over 57,000 decentralized applications have integrated the protocol, which illustrates its utility and interoperability within the Web3 space.
Funding and Development
The WalletConnect Foundation has raised $10 million from four consecutive oversubscribed token sales. The funds will enable the WalletConnect Foundation to expand operations, grow its team and support ecosystem initiatives — benefiting developers, node operators and strategic partners.
Closing Thoughts
WalletConnect started as a simple way to connect wallets to DApps, but it’s grown into a whole ecosystem with its own token, governance system, and network infrastructure. With support for multiple blockchains and a strong user base, the project is enabling secure and efficient communication across multiple Web3 platforms.
Further Reading
Your Guide to Binance Launchpad and Launchpool
How to Set Up a Crypto Wallet
What Are Decentralized Applications (DApps)?
Disclaimer: This article is for educational purposes only. This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
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