Category: Blog-new

Does The SOF Verification Work?

Passing the SOF verification at Coinsdrom is much simpler than it might seem. Depending on the amount you plan to transact, we have different levels of documentation required. For larger transactions, you might need to provide more detailed information, but we have streamlined the process to make it as painless as possible.

For example, if you are at the highest level (transacting over €75,001), we might ask for documents like payslips or bank statements, and maybe even a quick video call. This ensures that we are dealing with the right person and that the funds are indeed legitimate.

Here is Why It Is Easy to Pass

Our team will assist you throughout the process and ensure you are fully aware of what is required and why. We also explain what documents are needed and how they should be submitted in a clear and concise manner. Also, the verification process is relatively quick, so you will not have to wait for several days to get approval to start your market journey.

At the end of the day, our goal is simple: to ensure that you can build your wealth within a reliable system. The SOF policy is one of the ways through which we are fulfilling the mission to make sure that our community remains secure.

Bottom Line

Coinsdrom’s “Source of Funds” policy might seem like a minor inconvenience at first, but it is a small price to pay for the peace of mind that comes with knowing you are operating in a safe crypto exchange. By working together and being transparent about where our funds come from, we can keep our platform secure and trustworthy for everyone.

In January 2024, the Securities and Exchange Commission (SEC) made waves by finally giving the nod to 11 Bitcoin exchange-traded funds (ETFs). This was a huge deal in the crypto world. 

For years, asset managers kept knocking on the SEC’s door, only to be met with rejection due to fears of market manipulation. But a recent court ruling gave the SEC a push, and they had to rethink their stance. So, these new financial products are now on the scene. 

But what exactly is a Bitcoin ETF, and what could it mean for Bitcoin’s value? In this blog, let’s break it down, step by step.

What Is a Bitcoin ETF?

An ETF, or exchange-traded fund, is generally like a basket of diverse financial assets. But instead of holding a range of different things, a Bitcoin ETF just tracks the performance of Bitcoin. 

With the Bitcoin ETF, you do not actually need to own Bitcoin. You just buy shares in the ETF, and as Bitcoin’s price goes up or down, so does the value of your shares. Like all ETFs, they are also traded on regular stock exchanges. That means you can buy and sell Bitcoin ETFs just like you would with any other stock, making it super accessible—even for individuals who might not be all that tech-savvy or comfortable with crypto. 

This ease of access could mean Bitcoin starts showing up in more traditional portfolios, driving up demand as more everyday enthusiasts jump on board. 

We, at Coinsdrom, maintain a seamless crypto exchange system with a focus on making things easy and secure. With us, you can exchange Bitcoin and other top cryptos quickly, backed by the highest security standards and a simple process.

The Bitcoin ETF Boom

When these Bitcoin ETFs hit the market, they blew everyone away. On the first day alone, they pulled in over $4 billion, shattering records left and right. Big players like BlackRock and Fidelity were leading the charge, and in just a month, their Bitcoin ETFs had billions in assets under management (AUM).

This rush of interest shows just how hungry market players are for a safe, regulated way to get in on the Bitcoin action. The success of these ETFs is a big sign that Bitcoin is no longer just for the niche crowd; it is moving into the mainstream. And with such a strong start, it is clear that the market for these ETFs is only just beginning to grow.

How Will This Affect Bitcoin’s Price?

Now, what does this all mean for Bitcoin’s value? The answer lies in the flood of institutional money these ETFs are bringing in. Until now, big institutions have been a bit wary of Bitcoin—too risky, too unregulated. But with the SEC’s stamp of approval, those concerns are easing up, and we are seeing more confidence in Bitcoin and crypto exchange overall. 

And since institutions tend to take a long-term approach, this could also help stabilize Bitcoin’s famously wild price swings. Over time, this might make Bitcoin a more attractive option for a wider range of people, not just hardcore crypto fans.

A New Chapter for Crypto Exchange

The approval of Bitcoin ETFs is a big step forward for the whole crypto exchange industry. With more institutional money flowing in, the entire market could see a boost in liquidity and stability. Also, as crypto becomes more integrated into the financial system, we are likely to see clearer regulations, which could make the market even more robust.

Here at Coinsdrom, we are always staying ahead of the curve. We have built a platform where you can exchange your most-liked cryptocurrencies instantly, all while knowing that you are supported by top-notch service and customer support.

Final Thoughts

The SEC’s decision to approve Bitcoin ETFs is a game-changer for the crypto world. By making Bitcoin more accessible to the big players, these ETFs are likely to push demand and bring some much-needed stability to Bitcoin’s price. 

As things continue to evolve, it is becoming clearer that Bitcoin is carving out its place in mainstream finance. For anyone curious about where digital assets are headed, now is the time to pay close attention to how Bitcoin ETFs are shaping the future of the crypto exchange landscape and beyond.

Risk Warning: The exchange of digital currency is considered a risky transaction with highly speculative outcomes. Purchasing or selling Cryptocurrency carries significant risk. The company does not act as a financial advisor, does not provide investment advisory services or guidance. The company does not guarantee any profit from any activity associated with its services. You should carefully consider if holding digital currency is suitable depending on your financial circumstances.

Cryptocurrency has always been a landscape of innovation and is now intertwined with politics. World Liberty Financial (WLFI), a decentralised finance project, has gained significant attention due to the endorsement of former U.S. President and 2024 presidential candidate Donald Trump. Backed by Trump and his family members, including Donald Trump Jr., Eric Trump, and Barron Trump, the project aims to strengthen the global standing of U.S.-pegged stablecoins in the DeFi space.

What is World Liberty Financial?

World Liberty Financial is designed to promote the mass adoption of stablecoins and decentralised finance, positioning U.S.-pegged stablecoins as the primary global settlement layer. The project has set its sights on the future dominance of these stablecoins in global finance, mirroring the traditional role of the U.S. dollar. Though still in development, it is expected to launch as an Aave V3 instance, creating a marketplace for borrowing and lending cryptocurrencies using Aave’s infrastructure.

WLFI Token: Governance with a Twist

One of the key features of World Liberty Financial is its governance token, WLFI. Unlike most governance tokens in the DeFi space, WLFI does not carry economic rights, making it non-transferable after purchase. This means that once you buy WLFI, you won’t be able to trade or sell it. The token only provides governance voting rights, allowing holders to participate in decision-making within the platform.

The WLFI token is built on Ethereum (ERC-20) with a total supply of 100 billion tokens, distributed as follows:

• 35% for public sale
• 32.5% for community growth and incentives
• 30% for initial supporters
• 2.5% for advisors and team members

Public Sale and KYC Requirements

The public sale of WLFI tokens started on October 15, 2024, offering 20 billion tokens, which can be purchased using USDC, or ETH. So far, the project has raised approximately $14 million. However, the process comes with strict requirements, including KYC (Know Your Customer) verification, which involves national ID and facial recognition. Interestingly, while the project aims to bolster the U.S. dollar, American citizens are currently barred from participating in the sale.

Trump’s Role and Non-Political Branding

Despite Donald Trump’s and his family’s involvement, the project maintains that it is not politically affiliated. The Trump family serves as advisors to the project rather than board members, and they have been allocated around 22.5 billion WLFI tokens in exchange for their contributions. World Liberty Financial has been clear that its goal is financial, not political, even though it coincides with Trump’s 2024 presidential campaign.

A Bold Step in DeFi with Uncertain Future

World Liberty Financial is making waves due to its unusual approach. Most DeFi projects assure token holders of future economic rights, even if they are deferred. In contrast, WLFI tokens are designed with no financial benefits and remain illiquid, a characteristic that has raised eyebrows in the crypto community. Nonetheless, the project’s bold branding and endorsement by a former U.S. president have drawn attention, and it could become a pivotal point for DeFi as we know it.

As World Liberty Financial continues to develop, its long-term impact on the DeFi landscape remains to be seen. Whether it will successfully reshape the stablecoin market or fall short due to its unique tokenomics is yet to be determined. However, its connection to Donald Trump makes it one of the most talked-about crypto projects in 2024. For those interested in following the latest trends in cryptocurrency, Coinsdrom will keep you updated on this evolving project and its potential implications for both the crypto and financial sectors.

Blockchain is the technology that powers cryptocurrencies like Bitcoin and Ethereum. While it might seem complex at first glance, the basic concepts are quite simple and essential for understanding how cryptocurrencies function. In this guide, we’ll break down the key principles of blockchain, how it works, and why it’s crucial for digital currencies.

What Is a Blockchain?

At its core, a blockchain is a digital ledger that records transactions decentralised and transparently. Unlike traditional databases controlled by a single entity, blockchain is maintained by a distributed network of computers known as nodes. Each node has a copy of the entire blockchain, ensuring the data remains accurate and consistent across the system.

How Blockchain Works

Blockchain operates through the following essential principles:

Blocks and Chains

A blockchain comprises “blocks,” which contain batches of transaction data. Each block is linked to the previous one, forming a “chain” of blocks. This chronological order ensures that no transactions can be altered once they’ve been added to the blockchain, as altering one block would change all the following blocks.

Decentralisation

Unlike traditional systems that rely on a central authority (like banks or governments), blockchain uses a decentralised network. This means that no single entity controls the blockchain. Instead, decisions and updates to the blockchain are agreed upon by most participants (nodes) in the network. This decentralisation is one of the reasons blockchain is trusted for cryptocurrencies, as it makes the system more transparent and resistant to manipulation.

Consensus Mechanisms

Blockchain uses consensus mechanisms to validate transactions. The most common types are Proof of Work (PoW) and Proof of Stake (PoS):

• Proof of Work: In this method, miners compete to solve complex mathematical problems, and the first to solve them gets to add the next block to the chain. Bitcoin uses this system.
• Proof of Stake: Here, validators are chosen based on the amount of cryptocurrency they “stake” or lock up as collateral. This method is less energy-intensive and has been used by newer blockchains like Ethereum since its upgrade.

Transparency

One of blockchain’s most important features is its transparency. Every transaction on a blockchain is recorded on a public ledger, which anyone can view. This transparency allows users to track all network activity, ensuring accountability and trust in the system.

Why Blockchain Is Important for Cryptocurrencies

Blockchain’s unique features make it the perfect technology for digital currencies. Here’s why:

Immutable Record of Transactions

Once a transaction is added to the blockchain, it cannot be altered. This creates a permanent record, ensuring that cryptocurrency ownership is straightforward and cannot be falsified.

No Need for Middlemen

Blockchain enables peer-to-peer transactions, meaning users can send and receive cryptocurrencies without intermediaries like banks. This reduces transaction costs and speeds up the process, especially for international transfers.

Enhanced Transparency

With blockchain, all transactions are visible on the public ledger, creating an open and transparent system. This openness helps build users’ trust and encourages the growth of cryptocurrency ecosystems.

Consensus-Based Validation

Blockchain’s consensus mechanisms ensure that transactions are only added when verified by most participants, reducing the likelihood of invalid or fraudulent transactions.

Blockchain Beyond Cryptocurrencies

While blockchain is best known for supporting cryptocurrencies, its potential applications go far beyond that. From supply chain management to voting systems and digital identity verification, blockchain’s principles of decentralisation and transparency have the power to revolutionise various industries.

Blockchain might seem complex, but understanding its foundational principles—like decentralisation, blocks, and consensus—can provide valuable insights into how cryptocurrencies operate. As the technology continues to evolve, blockchain’s role in shaping the future of digital transactions and beyond will only become more significant.
For those new to the crypto world, grasping the basics of blockchain is the first step toward becoming a more informed participant in this exciting space.