Coinbase: Ways to Invest in Crypto

Cryptocurrency investments have soared over the past decade as accredited investors and institutional adopters have validated the industry, inspiring intense growth. Adding digital assets to an investment portfolio has shown to be a strategic and effective way to gain passive income. While cryptocurrencies are still new to most individuals, you may be wondering how to start investing. You want to invest a portion of your savings into Bitcoin and aren’t sure how to get started, or how to best go about it. That’s where Coinbase comes into the picture. Although there are a variety of different ways one can invest in cryptocurrencies, this article will focus on Coinbase’s capabilities and how the company has evolved over the years to facilitate crypto investing.  

When Coinbase was founded back in 2012, Bitcoin had been around for roughly three years and was the sole cryptocurrency Coinbase offered for trading. In the years since, they have also added Ethereum, Bitcoin Cash, Litecoin, and many other crypto and fiat currencies. Showing tremendous growth in under a decade, operating in over 100 countries, with 43 million users, Coinbase is one of the largest crypto exchanges. Popular amongst beginners as well as crypto veterans, Coinbase is a household name. 

Coinbase Capabilities

Coinbase’s mission is to utilize crypto’s capabilities to make the financial infrastructure exponentially more accessible than traditional finance. While Coinbase is most commonly known for and utilized as a cryptocurrency brokerage, its capabilities don’t stop there. In addition to simplifying the buying, selling, and security implementations of cryptocurrencies, Coinbase additionally offers the capabilities of a wallet, exchange, and other supplemental tools all in one condensed location. Such tools include trading signals, and other data tools that keep investors up to date on what is happening in the market as a whole. Coinbase also offers its native stable coin, USD coin which upholds the same value as the U.S. Dollar.

Why Coinbase 

Coinbase’s interface is very user-friendly. To get started, all you need to do is link your bank account to your Coinbase account and you are free to trade. The platform provides the ability for individuals to purchase coins using debit cards, PayPal accounts, and other methods of payment. Additionally, their user interface is updated regularly and is a trusted platform for many individuals around the world due to their insurance policies and the security of digital assets. This is a reassuring feature as it prevents hackers from easily accessing user information. Coinbase is highly liquid as well, which proves to be beneficial for users as the cryptocurrency market often experiences price volatility.  Coinbase optimizes the management of all users’ assets in one place, and even the ability to schedule buys in a variety of increments.

With access to over 30 different cryptocurrencies, there are a wide variety of crypto assets to choose from, allowing individuals the ability to gain exposure and add a variety of unique digital assets to their portfolios. 

Final Remarks

With exponential need and desire from investors to purchase their own digital wallets, alternatives crypto exchanges include Kraken, Binance, and Gemini. All with similar intentions to evangelize the crypto ecosystem, crypto exchanges are making a decentralized future of finance more attainable.

By Abigail Almonte

Crypto Investing 2021: Financial Advisor Education

Financial Advisor Crypto Education 2021

Financial Advisor Crypto Education 2021

Wall Street is embracing crypto. As the digital asset ecosystem grows past a $1 trillion market capitalization, the crypto ecosystem is garnering more recognition, validation, and investment than ever before. The world is realizing the true value behind digital finance as both an asset class and a means of transaction, and as this revelation occurs, it is imperative for financial advisors to be educated and well-versed about this technology to support their clients’ ever-growing investing needs. 

As this global financial shift develops, financial advisors must prepare to embrace the exponential pace of innovation that the fintech industry is experiencing, especially as blockchain technology and cryptocurrencies are shaping up to be the best solution for the needs of individuals, banks, and institutions in an increasingly digital post-pandemic world. Not only do cryptocurrencies offer a solution for an increasingly digital marketplace, they also enable the world to transact instantly, cutting out the risk of third-party interference and empowering a new age of globalization.

Sarson Funds exists to bridge the gap between traditional finance and crypto. We are a cryptocurrency education and investment firm focused on bringing Wall Street standards for research, risk management and transparency to digital asset investing. Thus, we aim to make the crypto ecosystem more digestible and welcoming to the traditional financial community, from financial advisors to institutional investors. 

To help you and your clients along in your digital asset discovery, we have compiled a series of introductory educational content to provide financial advisors an easier path toward the future of finance. Below, discover the five questions you need to know to best serve the crypto investment needs of your clients, a comprehensive guide on how to buy Bitcoin, and our very own Cryptocurrency 101 guide. With these, we hope to be your trusted source for crypto education and investing needs. For more educational content, please visit sarsonfunds.com and our youtube page, here.

Investing in Crypto: Five Questions to Ask Your Financial Advisor

Crypto Basics: How to Buy Bitcoin

Cryptocurrency 101 Guide

By Liam McDonald

Crypto Basics: How to Buy Bitcoin

Sarson Funds: How to Invest in Bitcoin - Cryptocurrency Financial Advisor

Sarson Funds: How to Invest in Bitcoin - Cryptocurrency Financial Advisor

As Bitcoin and the digital asset ecosystem continue to reach all time highs, investors are being awakened to the true value of crypto assets. As newcomers gain interest, the most frequently asked question has become: how can I buy Bitcoin? This article will provide a step-by-step manual on how to invest in cryptocurrencies and the various elements to consider before investing.

First, every investor should consider how they would like to invest: individually or with a digital asset manager. You should invest individually if you believe you have a firm grasp on the various tokens throughout the ecosystem and would like to diversify your holdings based on your own strategy and methodology. Investing individually would provide you the freedom to invest and own various tokens on your own, versus owning a portion of a larger-scale investment strategy. If you are new to the crypto space and are looking to join in on the fun without knowing much about individual coins, or would rather entrust professional portfolio managers to drive returns for you, then you should choose a digital asset manager and a specific strategy that fits your investing interests.

To invest individually, you must first choose how you’d like to invest. If you are simply looking to own Bitcoin, a very basic entry point would be to invest through a Bitcoin ATM, which are widely available in grocery and convenience stores across the United States. These ATMs allow you to buy Bitcoin with cash, debit and credit cards, and most allow the sale of Bitcoin in return for cash on your card. Purchasing and selling Bitcoin through an ATM will provide you with a paper wallet and a private key password to keep your Bitcoin safe. This paper wallet must be kept safe and secure, as loss of this wallet and the private key would mean a total loss of the assets stored on these until the address and private key are recovered. If you already have a Bitcoin wallet, you can scan the QR code of the wallet or provide its address to send the Bitcoin straight to your pre existing wallet.

If you’d like to actively trade Bitcoin and other digital assets, as well as track their progress and keep up to date with the ecosystem daily, we recommend purchasing Bitcoin through a crypto exchange. First, you must decide what type of investor you are looking to be. If you are simply looking to trade and keep up with crypto whenever you can, we recommend setting up an account with Coinbase, Gemini or Kraken. If you are looking to be a more sophisticated investor, Binance US offers real time analysis and price trends, giving investors the ability to witness active and past trading candles as well as buys/sells coming through the platform. Access to these price trends and real time market activity provides investors insight into where Bitcoin’s price will move in the short term.

Once you have decided which exchange will give you the capabilities you need, it’s time to set up an account. Setting up an account on a crypto exchange requires investors’ information for proper KYC background checks. This will require a government issued ID, a bank account to source money flows, and an onboarding process for account verification. Once your account is set up, you are free to invest on the platform.

Purchasing Bitcoin and other digital assets on crypto exchanges is an easy process. You simply look up the coin you would like to invest in, then select the dollar amount of the coin you would like to purchase (crypto assets can be bought in small parts, so you do not need to buy a whole coin), and confirm the purchase to finalize the transaction.

Once you own your coins, it is crucial to know how to protect them. Keeping your coins on exchanges is the simplest way to consolidate your assets in one place, but if you want true ownership of your tokens, you must own and control the private key to your wallet, which acts as a password to gain access to your coins. When your coins are located on exchanges, you do not truly own them because your private key passwords are stored on the exchange. When your private key is stored by a centralized platform, your coins may risk compromise if the platform is hacked. Thus, to ensure the true security of your tokens, we recommend taking your coins off of crypto exchanges and holding them on cold storage wallets like the Ledger Nano X.

At Sarson Funds, we aim to enable and empower our community to access the new age of financial freedom. To learn how to invest with a digital asset manager, stay tuned for our next segment of Crypto Basics. Until then, do what you came here to do and go buy some Bitcoin. Happy HODLing!

By Liam McDonald

Market Update: Crypto Market Cap Breaks Past $1 Trillion

Crypto Market Cap Reaches 1 Trillion

Crypto Market Cap Reaches 1 Trillion

BREAKING: Last night, the entire crypto market cap broke past USD $1 Trillion. This escalation is indicative of the global pace of crypto adoption as Bitcoin, Ethereum, and crypto tokens around the ecosystem break past all time highs as the world is awakened to the true utility of digital assets. Fueled by the economic uncertainty posed by the COVID-19 pandemic and the macroeconomic response of countries worldwide, we expect this momentum to continue as regulation strengthens, Wall Street and global institutions validate the utility of crypto, and the world leans more and more on digital commerce. 

As global sentiment shifts to embrace crypto, we are here to educate the world on the power of the blockchain ecosystem and enable true financial sovereignty. Please reach out to us for educational inquiries and our recommendations on how to get involved in the next great shift in global finance.

By Liam McDonald

Cryptocurrencies and Quantum Computing: A Future of Coexistence

Sarson Funds - The Future of Crypto - Cryptocurrency Financial Advisor

Sarson Funds - The Future of Crypto - Cryptocurrency Financial Advisor

Recent developments in both quantum computing and the crypto ecosystem indicate that neither are going anywhere. As both continue to grow, it is crucial for the crypto community to understand that quantum computing poses both an existential threat and lucrative opportunity towards crafting the future of the ecosystem. As we have expressed in previous segments, quantum computers will soon be fully capable of cracking into crypto wallets only through knowledge of wallet addresses, as they are able to use these addresses as the foundation to further derive the public and then the private keys. As this quantum functionality arises, the future of crypto depends on quantum-resistant encryption solutions.

The bottom line is that crypto and quantum computing must coexist. At Sarson Funds, we believe that an upside to quantum computing risk is that it will push blockchain to become truly unbreakable, pushing cryptocurrencies to be the indisputable medium for future commerce. Thus, quantum computing should not be viewed as an existential risk, but rather a tool to drive crypto towards a future of quantum-resistance and assured value protection. The future-proof security that will emerge from the next wave of crypto advancements will provide a pathway of irrefutability for crypto as a means of consensus for our future financial system.

The next wave of crypto advancements will likely see an emergence of two key avenues towards quantum-resistance: quantum-proof blockchains and digital assets wrapped with quantum resistant encryption algorithms. While we are only beginning to understand what the future of crypto will look like with the recent release of the Crown Sterling token, we know that the crypto community will respect the pace of innovation and understand that even the most underlying mechanisms that we’ve trusted for so long are at risk.

By Liam McDonald

Protecting Your Bitcoin From Quantum Computing Risk: Cold Storage with the Ledger Nano X

Guaranteeing Bitcoin Safety with Quantum Computing Advancements

Guaranteeing Bitcoin Safety with Quantum Computing Advancements

As discussed in the first part of our quantum computing risk advisory, taking your Bitcoin off of centralized exchanges and keeping them safe in cold storage (off exchanges) is a sure way to guarantee the protection of your digital assets. Our recommendation for the best hardware to store your assets on is the Ledger Nano X, which enables users to control their coins through the personal storage of their private keys. The Ledger Nano X is the first and only certified hardware wallet on the market.

When users activate their Ledger Nano X, private key ownership is restored to the rightful owner of the coins, taking control away from centralized exchanges that typically hold and control wallet addresses, public and private keys of their holders. When all three of these, especially private key ownership, is returned to users, users become the true owners of the coins as private key storage is removed from the centralized cloud. When wallets and keys are taken off exchanges, quantum computers have no way of beginning to find them, as referenced in part one, and no complicated tactics are needed to continue safety assurance.

With the Ledger Nano X, users have access to millions of private key passwords for their wallets, so they can engage in as many transactions as they want and have automatic wallet and key regeneration to completely sidestep risk of quantum hacking. The encyclopedia of randomly-generated private passwords is accessible through a recovery phrase, which must be kept private by the user, or else they risk hackers gaining access to all of their private key combinations.

We have no paid partnership with the Ledger team, we are simply recommending our best practices as the future of the crypto ecosystem evolves alongside quantum computing. You can purchase the Ledger Nano X, here.

For more information on quantum computing, the risks and opportunities associated with it, be sure to explore our Cryptography Lite Paper and Digital Asset Investor Guide to Cryptography.

By Liam McDonald

Quantum Computing: Your Bitcoin is Vulnerable – Crypto Will Prevail

Quantum Computing Poses a Serious Threat to Bitcoin, but the ecosystem will prevail

Quantum Computing Poses a Serious Threat to Bitcoin, but the ecosystem will prevail

As we have communicated in previous briefings, the advent of quantum computing and the utility behind this technology is an increasing concern for digital asset investors. Thus, the digital asset ecosystem faces three key risks as it maneuvers its way toward a future of quantum coexistence: the vulnerability of modern encryption protocol, lost value protection, and ecosystem disruption. While these risks pose an incredible challenge for crypto to address and overcome, the solutions being derived are shaping up to be the greatest investment opportunity digital asset investors have seen since the birth of Bitcoin. 

Modern Encryption Protocol is Vulnerable

A user’s public key is directly obtainable from their wallet address when transactions take place. If a strong enough quantum computer is utilized, it can quickly decipher the private key through simply knowing the public key. In this case, the world’s most sensitive data, not just Bitcoin, will be vulnerable to security breach. 

According to Deloitte, 25% of Bitcoin’s circulating supply faces the risk of value loss due to future quantum computing advancements. These bitcoins are vulnerable because their owners, who have previously transacted with them, likely lost their private key and cannot reacquire their assets. These lost wallets are at risk of data breach because their initial transaction gives quantum hackers insights into their wallet address, and thus their public key and then private keys. For more information on public and private keys, visit our Digital Asset Investor Guide to Cryptography.

As data emerges as the most valuable asset in the world with our increasingly digitized global infrastructure, enhancing our encryption techniques as quantum computing develops will future-proof the entire universe of data.

Lost Value Protection

The security of digital assets is the underlying value driver of the ecosystem. If the foundation of digital assets – the security that validates their worth – is broken, then the value of the entire crypto ecosystem will be vulnerable if left improperly protected.

Ecosystem Disruption

Once quantum computing’s capabilities arise, the financial freedom that crypto offers will be at risk as investors’ control over their digital assets is threatened, taking credibility away from crypto as both a means transaction and a store of value asset.

Looking to the Future

Naysayers will claim that quantum computing will end crypto. What these cynics hate to acknowledge is crypto’s overwhelming resiliency. Unfortunately for them, the ecosystem has too much momentum to fail. Time and time again, from all time highs to 85% price corrections, the relentless innovation that crypto is founded upon has enabled the ecosystem to bounce back with greater strength, security, and scalability to prove that it is not going anywhere.

The beauty of crypto is that it offers banking for the unbanked, financial freedom for economic instability, and ultimately, hope for the hopeless. Rooted in the vision for a more unified world, crypto’s resiliency will engineer a future of quantum-resistant value protection and financial empowerment.

As revealed on December 7th, Crown Sterling’s quantum-proof encryption solution is pioneering the future of digital asset security. Their application, CrownEncryptOTP, restores confidence to the digital asset community through its integration with the Crown Sterling token, crypto’s first quantum-resistant coin. As Crown Sterling sets a firm foundation for future data security enhancements, the continued effort to protect the world from quantum computing risks will be the greatest investment opportunity of the 21st century, especially for digital asset investors.

By Liam McDonald

Bitcoin is Here to Stay: Wall Street Adopts the Asset Class of the Future

Wall Street Adopts Bitcoin Cryptocurrency Financial Advisors

Wall Street Adopts Bitcoin Cryptocurrency Financial Advisors

The past few months have welcomed several notable institutions and investors into the digital asset community. From Paul Tudor Jones to Square, PayPal and JPMorgan, the next wave of acceptance is reaching top tier asset managers.

This week, both Guggenheim and AllianceBernstein released statements declaring digital assets a legitimate asset class, with Guggenheim announcing a possible allocation of up to 10% of their $5.3 billion Macro Opportunities Fund into the Grayscale Bitcoin Trust (GBTC).

As one of the largest asset managers on Wall Street, Guggenheim is taking a leading role in recognizing the true use cases and profitability behind a decentralized financial infrastructure, and their impending asset allocation to GBTC is validation that this asset class is not going anywhere.

As the world becomes increasingly digitized and the pace of innovation is more cutthroat than ever, Guggenheim’s validation of Bitcoin is indicative of their foresight into the future of asset management. With their vision of a digital asset-backed financial future, Guggenheim is living up to their fiduciary commitment to drive future returns for their clients by allocating up to $530mm into the asset class of the future.

Alongside Guggenheim in their recognition of cryptocurrencies as an asset class is Wall Street giant AllianceBerstein. Earlier this week, Inigo Fraser Jenkins, Co-Head of Bernstein Research’s Portfolio Strategy team released a statement claiming that digital assets “do have a place in asset allocation.”

Coming back on his 2018 remarks that digital assets do not present a convincing use case because their historic volatility ruled them out as a means of transaction, Fraser Jenkins’ recent statement is credited to Bitcoin’s lower price volatility and therefore strengthened foundation as a store of value asset. On Bitcoin’s viability as a store of value, Fraser Jenkins told CoinDesk that Bitcoin’s downward trend of price volatility “makes it more attractive both as a store of value and as a medium of exchange.”

There is no denying that Bitcoin is earning the respect of Wall Street. Massive allocations from MicroStrategy, Square, and legendary investors like Paul Tudor Jones along with crypto integrations from PayPal and JPMorgan are delivering Bitcoin on a gold platter to the global investment community. The momentum from the past few months has made one thing clear: Bitcoin is not going anywhere, and as Bitcoin is here to stay, regulation will soon follow to project the world into a future of universal digital asset adoption.

By Liam McDonald

Bitcoin Cash: 51% Attack and the Bitcoin Cash Fork

Sarson Funds Bitcoin Cash Fork Cryptocurrency Financial Advisor

Sarson Funds Bitcoin Cash Fork Cryptocurrency Financial Advisor

Weekly Analyst Thoughts

Hashing wars are when miners battle with each other to win control of a blockchain. As hashing wars and hard forks take place, the support for Bitcoin’s consensus algorithm is strengthened. While Bitcoin’s Proof of Work (POW) mining algorithm has garnered undeniable support over the years, one flaw still remains: the 51 % attack – a blockchain attack where a group of miners controls more than 50% of the network’s mining hash rate, giving them the ability to halt and even reverse transactions. Satoshi states on the viability of a 51% attack,

“As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they’ll generate the longest chain and outpace attackers. The network itself requires minimal structure.”

Source: https://bitcoin.org/bitcoin.pdf

When blockchains experience hashing wars, the underlying assumption that cooperating nodes have more CPU power then an attacker is negated, unfolding a multitude of negative repercussions. For example, on BCHA (a recent fork of Bitcoin Cash), there was an attacking miner who had more CPU power than the rest of the cooperating nodes, allowing him to sow absolute chaos on the BCHA network. This attack included the inability to mine users’ transactions (creating empty blocks), only verifying users’ transactions that had special messages attached to them, reorganizing other miners’ blocks so they no longer received the mining reward for solving a block, and demanding that the lead node implement new code rules via a soft fork to pay 100% of the block reward to Bitcoin ABC, therefore starving other miners of their mining reward. In the history of Bitcoin and POW currencies, 51% attacks have occurred mainly to steal coins, but none quite as brutal or unique as this recent attempt to destroy the BCHA blockchain through mining empty blocks, reorganizations, and using soft forks to change node consensus rules.

By Jacob Stelter