Apr 21, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly highlight — Trump wants to fire Powell? 

US president Donald Trump is actively considering firing Federal Reserve Chairman Jerome Powell, following Trump's public criticism of Powell for not moving quickly enough to reduce interest rates. National Economic Council Director Kevin Hassett confirmed that the administration is examining this option, suggesting that Powell's actions have politically favored Democrats. Hassett argued that the Federal Reserve's decision to raise interest rates shortly after Trump took office was intended to undermine the economic impact of the tax cuts implemented during his administration, which were deemed inflationary. He further criticized the Fed for not addressing inflation concerns stemming from federal spending under President Biden, implying a lack of accountability.

During a recent press conference, Trump conveyed his dissatisfaction with Powell, asserting that if he wanted to remove him, it could happen "real fast." While he did not explicitly state his intention to dismiss Powell, his remarks highlighted the growing tensions between the White House and the Federal Reserve regarding monetary policy. Hassett defended Trump's frustrations, advocating for a focus on economic policy rather than interpersonal conflicts. This situation underscores the complex dynamics between the executive branch and the central bank, as Trump navigates economic challenges leading up to the next election.

Weekly crypto highlight — XRP ETF coming

HashKey Capital has officially launched the HashKey XRP Tracker Fund, marking the first investment fund in Asia designed specifically to track the performance of XRP, the digital asset integral to Ripple's global payment ecosystem. This fund is aimed at professional investors and offers a unique opportunity to gain exposure to XRP without the complexities of direct asset management. Investors can subscribe through cash and in-kind options, with the fund providing monthly liquidity.

Ripple, as an early backer of the fund, is looking to enhance its strategic partnership with HashKey Capital, which already manages Hong Kong–listed spot ETFs for Bitcoin and Ethereum. This collaboration not only solidifies Ripple's presence in the Asian market, but also opens avenues for future financial products, such as the potential tokenization of a money market fund on the XRP Ledger. Fiona Murray, Ripple's Managing Director for the Asia-Pacific region, highlighted that this partnership is part of a broader strategy to introduce more regulated cryptocurrency products for institutional investors in the region, aiming to foster a more robust crypto landscape in Asia.

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Weekly Institutional Insights: Trump’s desire to fire Powell might induce volatility; XRP ETF coming

Hong Kong's Securities and Futures Commission (SFC) has approved a new Ethereum ETF with staking capabilities, allowing institutional investors to earn staking rewards.

Daily top performer — Pyth Network (PYTH)

The S&P 500 dropped 1.5% to 5,282.70 this week, down 5.9% in April and 10% year-to-date, led by tech losses. Real estate and energy outperformed, while political pressure on Fed Chair Powell and inflation concerns weighed on sentiment. Gold dipped 0.6% to $3,319 after a record high, as Powell’s stagflation warning tempered its rally. Despite the pullback, the uptrend remains intact. The Coindesk Indices, which tracks the broader crypto market, are up by 0.77%, with Bitcoin and Ether rising 0.64% and 0.72%, respectively, over the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is PYTH, up 10.1%, following the launch of Pyth Entropy for secure on-chain random number generation by Soneium.

Pyth Network (PYTH),  is a blockchain oracle system that delivers real-time crypto price data to blockchains, enabling smart contracts to react to market changes. Soneium 

 Pyth Entropy, a tool for securely generating random numbers on-chain. Two apps, HandsNFT AI and 2p2e, are already utilizing Pyth Entropy to create unpredictable and engaging experiences.

Check out the latest prices, charts, and data of 

Hong Kong's Securities and Futures Commission (SFC) has approved a new Ethereum ETF with staking capabilities, allowing institutional investors to earn staking rewards. This approval follows recent changes to local laws, with China Asset Management (ChinaAMC) partnering with OSL Digital Securities to launch the ETF by May 15. The ETF will offer exposure to Ethereum staking, transforming it from a passive investment into an active participant in the Ethereum network. The staking process is powered by Kiln, with OSL providing custody and insurance services. The rewards will contribute to the ETF's net asset value, benefiting shareholders.

Yesterday, Bitcoin spot ETFs saw $25.9M in inflows, all from non-GBTC funds, while GBTC recorded no flow.

" and a points campaign called Drops, where users can earn points—potentially leading to an airdrop—by engaging with Linera content on X. To join, sign up on 

, complete tasks like joining Discord and interacting on X, then enter the campaign. Keep engaging to earn more points, but avoid spamming.

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Hong Kong approves Ethereum ETF with staking rewards, boosting institutional participation

Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

US president Donald Trump’s tariff policies are influencing both crypto and US equities. Last week, BTC and the S&P 500 rallied due to a 90-day pause in reciprocal tariffs (excluding China). Equities are slightly below their April 9 highs, while BTC is holding above $83K. Its implied volatility term structure has normalized, and the volatility skew has improved from last week’s bias toward out-of-the-money puts, though it hasn't fully shifted toward calls.

Please check out the report’s highlights.

Tariff pause briefly brings back trading volume

Since our last report, open interest surged on Apr 9, 2025, as crypto spot prices rose after President Trump’s temporary tariff pause, accompanied by a nearly $10B increase in trade volumes. However, trade volumes have since returned to mid-March levels, and open interest has declined from the April 9 highs. The initial price spike indicates the tariff pause surprised the markets, but the subsequent pullback reflects concerns over remaining tariffs.

After being inverted for much of April due to trade policy shocks and macro headwinds, BTC’s term structure has disinverted, with front-end volatility dropping significantly this week. Call and put volumes have been balanced, with calls slightly exceeding puts most days. Apr 9, 2025, reflected mixed market sentiment, as both call and put volumes rose, but puts were higher overall. Open interest remains greater in calls, and has increased slightly since last week, reaching its highest level for the month (more than double from the beginning of April).

Despite a rally on Apr 9, 2025 that brought ETH close to $1.7K, traders sought downside protection, leading to higher volumes in put contracts as compared to calls. Since then, ETHUSDT options volumes have declined, but open interest remains strongly weighted toward calls with later expirations, which have increased since last week. After being inverted for much of April, ETH’s term structure of volatility has flattened, with volatility compressing around the 70% mark across tenors.

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Bybit X Block Scholes crypto derivatives analytics report (Apr 16, 2025): Bitcoin put bias has moderated, but not yet shifted to calls

KiloEx (KILO) is a user-friendly DEX for perpetuals trading, offering high leverage, rewards, LSTfi integration and a robust multi-chain ecosystem.

 trading is one of the most lucrative areas for cryptocurrency enthusiasts if you know how to navigate the sometimes complex world of these contracts. Unlike standard futures, perpetual futures contracts have no expiration date, allowing traders to hold onto their positions as long as they prefer. You only exit a crypto perpetual (or “perp”) contract when you feel it’s the best time to execute your long or short trade. The lack of an expiration period makes these contracts attractive for traders.

Unfortunately, many crypto perpetual contract trading platforms are far from user-friendly. It seems like many perpetual crypto exchanges assume that only professional traders dabble in these contracts, and along with that assumption goes a second one — that these pros can navigate even the most complex user interfaces. As a result, finding a user-friendly perps platform is a challenge in the world of crypto trading.

 (DEX) that aims to change the status quo by providing a user-friendly environment for traders. Its platform also offers high leverage ratios, integration into the wider liquid staking token finance (LSTfi) ecosystem and generous reward programs for referrers and affiliates.

Thanks to its numerous benefits, this DEX caters to the needs of traders at all levels of expertise who are interested in crypto perpetuals. Operational since mid-2023, KiloEx launched its native token, KILO, in March 2025 to further enhance its platform's reward, staking and governance mechanisms.

 (BNB) that specializes in crypto perpetual futures trading.

 The platform prides itself on offering a user-friendly interface, high 

 ratios of up to 100x, multi-token vaults with generous APYs and a number of reward programs for referrers and affiliates.

Co-founded by Joey Ni (CEO) and Charles Gong (COO), KiloEx was originally launched on BNB Chain's mainnet in June 2023. As of mid-April 2025, the platform has additionally expanded its service coverage to five 

 (B2). This coverage allows KiloEx to access the ecosystems of three leading blockchain platforms — 

Manta, Base and Taiko are Ethereum-focused Layer 2 solutions, while opBNB is an efficient and low-cost optimistic rollup for the BNB Chain, while B

 is a platform linked to Bitcoin that acts as a major Bitcoin DeFi (BTCFi) enabler.

Because it’s a BNB-native platform, KiloEx's industry footprint is most notable within this blockchain's broader ecosystem. In fact, as Apr 17, 2025, KiloEx is the top DEX on the opBNB network by 

Using Layer 2 chains allows KiloEx to offer its users fast and low-cost transactions, which isn't always possible on a typical Layer 1 network. It's true that BNB Chain, the primary Layer 1 used by KiloEx, generally has much lower gas fees than Ethereum, the industry's leading 

 chain that’s notorious for its exorbitant costs. However, KiloEx's partner Layer 2 networks help drive costs and transaction times even lower. BNB Chain's current average gas fee is slightly over $0.10, while the opBNB Layer 2 rollup's comparable fee is only about $0.005.

In 2024, the platform introduced one of its most innovative features — the 

, which allows liquidity providers to stake multiple assets to earn high yields. That same year, KiloEx significantly expanded its partnership network, becoming an active player in the LSTFi ecosystem. LSTFi is a new stream within the DeFi industry that allows you to use 

 (LSTs) on various protocols for additional yield.

Having solidified its market presence in 2024, the project launched its native token, KILO, in March 2025. However, in mid-April 2025, KiloEx 

 and halted trading on April 15 as a risk management measure, pending investigation of the damage.

The Hybrid Vault is among the most innovative features offered by KiloEx. Essentially, it acts similarly to liquidity pools on other exchanges. Liquidity providers can contribute their crypto funds to the vault to support trading activity on the DEX and earn interest on their contributions, based on the fees earned by the protocol.

You can contribute a mix of coins to a KiloEx vault. Supported assets include 

Depending upon trading activity and the mix of coins contributed, you can earn APYs as high as 30%, making KiloEx one of the most lucrative choices for liquidity providers in this niche.

KiloEx uses a health factor calculation for this type of vault to keep your funds and the entire ecosystem safe. Based on the health factor score of your contribution to the vault, your funds could be liquidated if their value drops dangerously low.

Discounts are also offered for fixed-term deposits for established assets, such as USDT and USDC. Withdrawals for the fixed deposits are processed upon maturity, while all other withdrawals are processed within one to three "epochs," with each epoch on the platform lasting about three days. Thus, depending upon your contributed funds, you’ll wait anywhere from three to nine days to receive your crypto back.

The KiloEx platform also runs a generous referral program under which you can earn rewards for referring your friends to the platform. The amount you earn depends upon the trading volumes generated by the people whom you’ve referred. Additionally, your referees to the DEX can also benefit from fee rebates, again depending upon the volume of trade they generate.

There’s a tiered system, comprising nine levels, based on which you and your friends earn commissions and rebates. Under this system, even those referred traders whose monthly volume is at the lowest level (below $5,000) can still benefit from 5% rebates, while you also earn a 10% commission.

The table below shows the structure of this referral system with percentages for commission and rebates based on monthly trading volumes.

KiloEx offers an affiliate program for key opinion leaders (KOLs) with a certain level of social media following and influence in the crypto market. KOLs may apply to join the program by filling out an application, which is then considered by the project team within 48 hours.

To qualify for affiliate status, a KOL must have: 

Approved affiliates are provided a link to the platform, and are encouraged to invite their followers to trade on the KiloEx. If they invite at least five followers who trade at sufficient levels, the affiliates can start earning their commission. KOLs can earn up to 55% commission, depending upon the referred followers' trading activity.

KiloEx’s native utility token, KILO, is a 

 asset launched on BNB Chain. It’s used on the platform for governance, fee discounts on trades, rewards via 

, liquidity provision incentives and staking.

KILO is a supply-capped asset, with a maximum and total supply of 1 billion. The token’s supply allocation shares are shown in the chart below.

xKILO is an escrowed version of the KILO token. You can convert KILO to xKILO at a fixed rate of 1:1. The primary utility of xKILO is to provide boosted liquidity provision, which makes it possible to receive staking rewards. By locking xKILO on the platform, you can access special discounts and other benefits reserved for VIP-level users. Holding xKILO also grants you governance power to vote and influence the platform's future direction.

Unlike KILO, xKILO is nontransferable and isn’t tradable on the secondary market. The only ways to obtain xKILO are either to buy it with KILO or receive it via airdrops.

Platform users can earn points to qualify for KILO airdrops. Typically, you accumulate points by trading, depositing funds, referring others to the DEX, checking in to the platform and completing other specified eligible activities.

The project’s initial airdrop, Genesis Season, had an eligibility snapshot taken back in July 2024. Under the currently running airdrop campaign, Pioneer Season, users can earn points to receive KILO tokens for 180 days past the token generation event (TGE) in late March 2025 (i.e., until late September 2025).

Additionally, you can earn KILO tokens on Bybit simply by participating in the 

 event and holding BNB in your account. Every day at various random times, Bybit will take snapshots of your BNB holdings in your Funding and Unified Trading Accounts to calculate the number of KILO tokens you’re eligible for. The campaign will run through Apr 25, 2025, 11:59PM UTC, and you’ll have your share of KILO airdropped seven days after this date.

 market as a swap pair with USDT. If you don't have a Bybit account, you can easily 

, and access opportunities across hundreds of trading pairs and crypto products on the exchange's Spot and Derivatives markets.

As of Apr 17, 2025, the KILO token is trading at $0.039, which is 76.2% lower than its ATH of $0.1648 on Mar 27, 2025, and 17.3% higher than its ATL of $0.03344 on Apr 12, 2025.

Long-term price forecasts for KILO are mostly bullish. CoinCodex 

 at $0.0387 in 2027 and then rise to $0.135 in 2030 while PricePredictions 

When it comes to perpetuals trading, both traditional 

 (CEXs) and DEXs have often struggled to offer an intuitive trading experience. In contrast, KiloEx has made user-friendliness a cornerstone of its operations. With KiloEx, you can enjoy a streamlined trading process, access market trends info for thorough research, get an overview of the cryptocurrency market and conduct other activities via an interface that’s designed for anyone, irrespective of their familiarity with decentralized trading.

The platform also boasts a diverse range of other benefits not easily found in the world of perpetuals-based cryptocurrency trading — generous leveraged trading options, trading fee discounts, lightning-fast trades, low trading fees and an innovative Hybrid Vault system. Many of these benefits are thanks to KiloEx's collaboration with several Layer 2 decentralized platforms, which provide the technical infrastructure to enable low costs and fast order processing.

If you’re a crypto perpetuals enthusiast, KiloEx is definitely a platform to peruse.

Intermediate

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KiloEx (KILO): More than a DEX — a rewarding ecosystem

Crypto

Bitcoin

There are seven main ways to purchase Bitcoin: Crypto exchanges, P2P trading, Bitcoin ATMs, trusts or ETFs, brokers, cash payment apps and trading apps.

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 (BTC) was the first cryptocurrency to be created. It remains the king of crypto today, with a 

 of $1.15 trillion (as of Aug 12, 2024). When it comes to buying crypto, investors often select Bitcoin above all the available alternatives, thanks to its popularity.

However, those who are making their first steps in the world of cryptocurrencies may initially find it difficult to buy Bitcoin since the process of purchasing crypto may be an alien concept to them. Fear not, as this guide will provide a comprehensive explanation of different methods for buying Bitcoin.

There are many valid methods of buying Bitcoin available to any potential purchaser. The two most popular are through crypto exchanges and P2P platforms. Other ways to buy Bitcoin include Bitcoin ATMs, trusts or exchange-traded funds (ETFs), brokers and various apps. Let’s view each of them in detail. 

There are two types of cryptocurrency exchanges: centralized and decentralized. 

 (CEXs) are typically deemed the best choice for beginners for their security, convenience and user-friendly platforms. Many offer various options of payment. For instance, investors can choose to buy bitcoins either with fiat currency or with other cryptos. The possibility of buying crypto for fiat is especially handy for newbies, as it facilitates the onboarding process.

Fiat-to-crypto CEXs offer a chance to buy crypto using various traditional payment methods, such as bank and wire transfers or a debit/credit card. You can make your initial purchase on such reputable platforms as Bybit.

Each CEX provides different anti-money laundering (AML) policies and requires different levels of 

 (KYC). What they have in common is a user-friendly interface and a simple onboarding process for newbies.

Let’s review the basic steps you need to take in order to buy Bitcoin, using the Bybit exchange as an example. On Bybit, users can buy Bitcoin (as well as Ether and USDT) with major fiat currencies (40+) via its fiat gateway. Basically, the process is as follows:

As you can see, the process is really simple and doesn’t require any technical skills. From this perspective, Bybit offers a service that perfectly fits newbies as well as seasoned traders and investors. Bybit even offers investors bullish on Bitcoin the option to buy Bitcoin regularly via its 

Meanwhile, crypto natives typically prefer using 

, to purchase Bitcoin and other crypto through 

. This inclination often stems from the desire to maintain anonymity, as DEXs lack the KYC procedures mandatory in CEXs. Additionally, users have complete control of their funds in DEXs, unlike in CEXs, where they have to relinquish control to the CEX. Since there’s no third party in the management of funds and transactions, users can make Bitcoin transactions at a lower cost.

However, the complexities of using a DEX and the absence of customer support make this choice unsuitable for most beginners looking to buy Bitcoin.

Generally, crypto newcomers start their journey with a traditional centralized exchange that acts as a middleman. However, it’s also possible to buy Bitcoin directly from other Bitcoin owners on various platforms such as Paxful and Remitano. Bybit also offers

 at zero fees, with hundreds of payment methods and support for multiple fiat currencies. The key difference here is that you buy cryptocurrency not from a platform, but from another person, and the platforms mentioned above serve to connect buyers and senders.

The first step on P2P platforms is the same as on centralized crypto exchanges, as it involves creating and verifying your account. Users then need to browse different offers and find a trading partner who provides the best price and most convenient payment method available. If a suitable option is found, you can simply open a trade with the selected Bitcoin seller. 

Once the trade is initiated, the seller sends Bitcoin to the escrow account and a buyer sends the relevant sum of fiat money. After that, the Bitcoin is unlocked and sent to the buyer. If, however, there’s no appropriate offer on the platform, you can always publish a request yourself.

There is no middleman in such sales, and both parties have to deal only with a program that transfers assets from the seller’s deposit to the buyer’s wallet. Such a method has some advantages:

Nevertheless, some risks are associated with this method, especially if you conduct your own P2P selling. The seller may ask for additional information from the buyer, or for additional commission. If you’re selling Bitcoin, fraudulent buyers may ask you to release the coins straightaway before the payment is completed, or insist they’ve made the transaction when they haven’t. 

That’s why it’s always best, if participating in this method, to do so only on legitimate platforms like the ones mentioned above. For the most part, they have escrow in place, as well as security measures such as identity checks.

Another way to obtain Bitcoin is provided by special ATMs called 

. Such machines look like ordinary ATMs but allow you to physically purchase Bitcoin for fiat money. Some Bitcoin ATMs possess bidirectional functionality, allowing you to both buy and sell Bitcoin for cash. This method is especially useful for those who find it difficult to adapt to technological innovations and prefer more traditional methods of payment. Another advantage of ATMs is their quick transaction speed. They eliminate the risk of fraud because no third parties are involved in the deal.

There are about 30 such types of such machines available. Specific algorithms of actions may vary, but the basic principle remains the same. Here’s a general step-by-step guide for how to buy BTC via ATMs:

If you want to find the closest Bitcoin ATM near you, make use of the 

 service, which can help you locate Bitcoin ATM machines in your home area.

 (ETFs) let you gain exposure to Bitcoin without actually owning it. While they aim to reflect Bitcoin price fluctuations, their value may not necessarily be a true reflection of Bitcoin’s price, due to other holdings in their portfolios. There are 

Previously, you could only purchase Bitcoin futures ETFs such as ProShares Bitcoin Strategy ETF (BITO), which invests in Bitcoin futures. This allows you to track Bitcoin’s market performance without owning the coin itself. 

The U.S. Securities and Exchange Commission's (SEC’s)

on Jan 10, 2024 has made Bitcoin even easier to purchase for mainstream traders and investors. Bitcoin Spot ETFs such as Franklin Bitcoin ETF give you more direct exposure to Bitcoin, as they hold actual bitcoins as their underlying asset and track the current price of Bitcoin.

You can also buy Bitcoin via trusts such as the 

. However, unlike Spot Bitcoin ETFs, which allow you to redeem shares, you won’t be able to redeem a trust’s shares for the underlying Bitcoin, which can cause a trust’s price to deviate even further from Bitcoin’s actual value.

As crypto exchanges are largely unregulated, they pose financial instability risks for users entrusting their funds to these platforms. Unlike traditional stock brokerages, which are covered by the Securities Investor Protection Corporation (SIPC), investments in Bitcoin and other cryptocurrencies on these exchanges lack such protection. This absence of SIPC coverage means that in the event of an exchange's insolvency (as witnessed with 

), customers may face losses without the guarantee of asset recovery. 

This contrasts with the safety net that SIPC provides for traditional stock brokerage customers, making brokers a more secure choice for risk-averse investors interested in cryptocurrency exposure. Examples of brokers who offer Bitcoin and other major cryptos for investment are Interactive Brokers® and Fidelity Investments. Stockbrokers allow you to purchase Bitcoin and other crypto through direct trading or ETFs.

Cash transfer apps such as PayPal and Venmo not only let you send and receive fiat money, but also support cryptocurrency transfers. These financial apps allow you to buy and sell Bitcoin and other supported cryptocurrencies. You can also transfer crypto between PayPal and Venmo, as well as between supported exchanges and wallets. 

Note that, just as with CEXs, these apps require you to undergo KYC verification. Moreover, their fees can be exorbitant as compared to those of cryptocurrency exchanges. And at the end of the day, despite all that hassle and cost, you don’t actually own any crypto that you’re investing in on these apps.

Stock trading apps like Robinhood and eToro offer advanced trading features not typically found at traditional stock brokerages. These include fractional price trading, which enables you to invest in amounts as low as a dollar. While a few brokers, such as the abovementioned, offer direct access to crypto, most traditional brokers do not. 

Meanwhile, trading apps generally allow direct buying and selling of Bitcoin and other cryptocurrencies. Additionally, trading apps often deliver a more streamlined user experience than the apps offered by brokerages. The sheer simplicity of using a trading app may make it a superior option for newbie traders, compared to traditional brokers.

Once your bitcoins reside in your wallet, make a decision about what you’re going to do with them. Traders may make use of BTC immediately and return to exchanges to switch their bitcoins to different 

. However, if you prefer to store your Bitcoin long-term to make profits later when its price increases, then consider withdrawing it to your own wallet.

A cryptocurrency wallet is a program intended for storing public and private keys that enable access to your funds, allow you to send and receive cryptocurrencies, track your balances and interact with various blockchains. Bitcoin is the most popular cryptocurrency, and is supported by almost all popular wallets. That’s why finding a suitable option shouldn’t be a problem.

 hot and cold. Both types have their own advantages and disadvantages, and can be used for different purposes.

A cold wallet is a physical, electronic device that isn’t connected to the internet and allows you to store assets offline. Hardware wallets and 

Hardware wallets typically are USB drive devices designed for storing private keys in the offline environment. You can receive bitcoins to your hardware wallet at any time, but when it comes to spending them, the device must be connected to a PC or a laptop. 

Such wallets are invulnerable to online hacking and unaffected by computer viruses. The only way to hack them is to physically steal the device. But even in this case, the perpetrator won’t receive access to your coins, as they can be protected with a PIN. 

The average price of such a device varies between $60 and $200. Popular hardware wallets, including 

, have proved their worth from a technical safety point of view and gained a good reputation among crypto users.

Another secure option for storing crypto long-term is to send it to a 

. There are numerous online services designed to generate such wallets. All you need to do is print the results they provide on paper. However, since this isn’t a durable material, don’t forget to take additional precautions. Make several copies, laminate some of them and put the others in a metal box, or give them to your friends for safekeeping.

A crucial feature of hot wallets that distinguishes them from their cold alternatives is that they need to be connected to the internet. In other words, these are online wallets. Any exchange will provide its users with a free hot wallet that automatically stores their traded BTC.

The risk associated with storing crypto on such wallets derives from the fact that, in most cases, they’re custodial. This means that their owners don’t hold the private keys to the cryptocurrency in their wallets. In contrast, fully non-custodial wallets are much safer, so in most cases, assets that aren’t traded are transferred to a wallet from a provider other than an exchange. Other types of hot wallets include web, desktop, and browser wallets. 

Regardless of the type of hot wallet you select, it will be connected to the internet, which makes your funds vulnerable to hacks. In order to protect your cryptocurrency and reduce this risk, follow these best practices:

Hot wallet providers, for their part, constantly develop and enhance security measures to protect their users.

If you’re a newbie to the crypto world, you may wonder which type of wallet will suit you best, hot or cold. To find the correct answer for you, first decide what you’re going to do with the bitcoins you’ve purchased.

Hot wallets are preferable if you frequently trade Bitcoin. They provide easier access to your funds, and are more convenient (as well as free) to operate. But it’s not a good idea to keep large amounts of Bitcoin in them for extended periods, as their main disadvantage is lack of security.

Cold wallets are safer, and are perfect for long-term storage of significant amounts of BTC. At the same time, they can be challenging for newcomers to understand — and they’re not free to use. 

Learning how to buy bitcoins and finding a secure place to store them may be tricky unless you know where to start. The options described in this article should provide you with insight into which is better suited for you, depending upon your risk appetite and knowledge of cryptocurrency. Additionally, being aware of the associated costs of buying Bitcoin on these various platforms is crucial, as some may charge exorbitant fees that could impact your overall profits. 

How to Buy Bitcoin: 7 Ways to Diversify Your Investment Portfolio

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