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<h1><strong>Markets Rebound After Largest Ever Crypto Liquidation Event</strong></h1><p>After a turbulent weekend, the crypto market is showing early signs of recovery following one of the largest liquidation events in its history.</p><p>What began as an escalation in trade tensions quickly turned into a flash crash that wiped out more than US$20 billion in leveraged positions. The speed and scale of the move caught many traders off guard and has left many investors questioning what happened, why it unfolded so quickly, and what it means for the market going forward.</p><h2><strong>What Unfolded</strong></h2><p>Market volatility spiked late Friday after trade tensions between the United States and China escalated. U.S. President Donald Trump’s threat to impose new tariffs on China sparked a wave of risk aversion across global markets, sending both stocks and crypto prices lower.​</p><p>Overnight, Trump followed up on social media with posts announcing plans for a 100% tariff on Chinese imports. The news deepened the sell-off and triggered a cascade of liquidations, causing a flash crash that rippled through the market.</p><p>During the crash, Bitcoin (BTC) fell ~12% to lows of US$107,000, while Ethereum (ETH) dropped ~20% to US$3,400. Many altcoins were hit even harder, with some plunging more than 50%.</p><p>In total, nearly US$7 billion in positions were liquidated within a single hour. By the end of the day, total liquidations had surged to almost US$20 billion, with roughly US$16.7 billion of that coming from long positions. According to<a href="https://x.com/coinglass_com/status/1976796969961193641" rel="noopener noreferrer" target="_blank"> <u>CoinGlass</u></a>, it marked the largest single-day wipeout in crypto history by dollar value.</p><h2><strong>Why It Happened</strong></h2><p>Many analysts and traders spent the weekend dissecting the chain of events behind the sell-off. While several theories continue to circulate, one thing is clear: there was a significant build-up of leverage across the system.</p><p>A large number of traders were positioned long in anticipation of a strong Q4, taking on leverage across both centralised and decentralised perps exchanges. The steady rise in open interest created the conditions for a rapid and severe unwinding once prices began to fall.</p><p>Although events like this have become less common as the crypto market has developed, they remain an important reminder of the risks that come with excessive leverage. Flash crashes, while painful, often serve a cleansing role by flushing out excess risk and restoring balance to the market.</p><h2><strong>The Bigger Picture</strong></h2><p>In times like these, it’s important to <strong>zoom out and keep perspective.</strong></p><p>This flash crash was very different from the structural or fundamental black swan events seen in past cycles. It was a leverage-driven event, not a breakdown in the underlying crypto ecosystem.</p><p>This episode served as a critical stress test for the industry. While some platforms experienced disruptions, many others, including Coinstash, continued to operate seamlessly, highlighting how much the market’s infrastructure has matured.</p><p>Although prices were impacted in the short term, many assets have already shown strong recoveries. At the time of writing, <a href="https://coinstash.com.au/btc/buy" rel="noopener noreferrer" target="_blank"><u>Bitcoin (BTC)</u></a> is trading around US$115,000, <a href="https://coinstash.com.au/eth/buy" rel="noopener noreferrer" target="_blank"><u>Ethereum (ETH)</u></a> remains above US$4,100, and most altcoins have rebounded significantly from the lows, showing that market confidence remains intact.</p><p>Global crypto adoption is surging, and institutional demand is gaining momentum as more investors look to digital assets for diversification and long-term growth. With further rate cuts still expected in Q4, macro conditions remain favourable for digital assets.</p><p>The recent volatility highlights both the risks and the resilience of this market. While price swings can be sharp, crypto continues to recover and evolve, reinforcing its position as a maturing and enduring part of the global financial landscape.</p>

<p><sub style="vertical-align: sub; font-size: smaller;"><strong><em>Disclaimer</em></strong></sub><sub style="vertical-align: sub;"><em>: This article and its contents are intended for informational purposes only, and do not constitute financial, investment, trading or any other advice from TWMT Pty Ltd, trading as Coinstash AU ("Coinstash"). Coinstash is not a licensed financial advisor and does not provide financial advice. You should not make any decision, financial, investment, trading or otherwise, based on any of the information presented in this webinar or relevant materials without undertaking independent due diligence and consultation with a professional financial adviser. The information presented in this article may be inaccurate and no representations are made as to its truthfulness or accuracy. The views and opinions expressed in the quoted material are those of the original authors and do not necessarily reflect the views of Coinstash. All quotes have been used for informational purposes and have been attributed to their respective sources to the best of our ability. You understand that you are using any and all information available in or through this webinar or relevant materials at your own risk. Cryptocurrency is a highly volatile and risky investment. You should consider seeking financial, legal, tax or other professional advice to check how the information relates to your unique circumstances. Coinstash shall not be held responsible or liable for any losses, whether due to negligence or otherwise, stemming from the use of, or reliance upon, the information provided directly or indirectly in this article.</em></sub></p><p><sub style="vertical-align: sub; font-size: smaller;"><em>﻿</em></sub></p>

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Market Update - October 13, 2025

Crypto Market Update - 13/10/25

<h1><strong>U.S. Inflation Data Triggers Crypto Market Pullback&nbsp;</strong></h1><p><strong>Market Highlights</strong></p><ul><li><strong>PCE Data Weighs on Risk Assets</strong>: Friday’s U.S. PCE report showed core inflation at 2.9% in July—inline with forecasts but higher than June—triggering a sell-off across equities and crypto.</li><li><strong>BTC Marks First Monthly Loss in Five Months</strong>: BTC fell -4.47% on the week and -6.51% in August, posting its first negative month since March.</li><li><strong>ETH Rejects From All-Time Highs</strong>: ETH dropped -8.07% after failing to hold its all-time high breakout, though it still closed August up +18.81%.</li><li><strong>Altcoins Under Pressure</strong>: Large-cap tokens traded broadly lower, with DOGE, XRP and ADA leading declines.</li><li><strong>CRO Soars on Trump Media Treasury Deal</strong>: CRO jumped +86.79% after Trump Media &amp; Technology Group announced a US$6.4 billion partnership with Crypto.com.</li></ul><h2><strong>Market Overview</strong></h2><p>Crypto markets pulled back this week, with both Bitcoin (BTC) and Ethereum (ETH) retreating from recent highs while altcoins extended their declines.</p><p>The weakness followed Friday’s U.S. personal consumption expenditures (PCE) index, which <a href="https://decrypt.co/337344/crypto-liquidations-top-500-million-bitcoin-ethereum-xrp-sink-weekend" rel="noopener noreferrer" target="_blank"><u>showed</u></a> core inflation running at 2.9% in July, inline with expectations but higher than June. The data weighed on risk assets broadly, with the S&amp;P 500 closing down -0.6% and the Nasdaq down -0.9%. Crypto traded in step with equities, as the total market cap <a href="https://www.tradingview.com/chart/tjYzZCN4/?symbol=CRYPTOCAP%3ATOTAL" rel="noopener noreferrer" target="_blank"><u>slipped</u></a> more than -4% in the aftermath of the release.</p><p>Looking ahead, seasonality remains a potential headwind. September has historically been one of the weakest months for BTC, and with macro pressures still in play, market participants remain cautious that further downside could unfold in the weeks ahead.</p><h2><strong>Bitcoin (BTC)</strong></h2>

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<p><a href="https://coinstash.com.au/btc/buy" rel="noopener noreferrer" target="_blank"><u>BTC</u></a> extended its losing streak, slipping -4.47% over the past seven days to mark a third consecutive week of declines. The move leaves BTC trading near US$107K, with price action consolidating after recent volatility. August closed with a -6.51% monthly decline, BTC’s first negative month since March.</p><p><strong>ETF Inflows:&nbsp;</strong></p><p>U.S. spot Bitcoin ETFs attracted US$440.7 million of inflows across the week, with Friday the only session to record net outflows, according to <a href="https://sosovalue.com/assets/etf/us-btc-spot" rel="noopener noreferrer" target="_blank"><u>SoSoValue</u></a>. Despite this, August flows finished negative overall, with ETFs posting net outflows of -US$751 million, underscoring waning investor conviction following July’s strong inflows.</p><p><strong>Corporate Treasury Demand:&nbsp;</strong></p><p>Amsterdam Bitcoin Treasury Strategy (AMBTS), established by Dutch crypto-asset service provider Amdax, has <a href="https://www.coindesk.com/markets/2025/08/29/ambts-raises-usd23-2m-to-build-bitcoin-treasury-targets-1-of-btc-in-circulation" rel="noopener noreferrer" target="_blank"><u>raised</u></a> US$23.2 million in its initial financing round. The funding, secured through private placements, will seed the company’s bitcoin accumulation strategy. The round, capped at US$34.8 million, is expected to close in September 2025.&nbsp;</p><p>Strategy CEO Michael Saylor once again hinted at potential additional Bitcoin purchases. Overnight, he shared a chart visualising the company’s BTC accumulation over time. The <a href="https://x.com/saylor/status/1962118072837267580" rel="noopener noreferrer" target="_blank"><u>post</u></a>, captioned “Bitcoin is still on sale,” is part of a pattern of messages from Saylor that have often preceded announcements of fresh BTC acquisitions.</p><h2><strong>Ethereum (ETH)</strong></h2>

<p>It was a week of sharp reversal for <a href="https://coinstash.com.au/eth/buy" rel="noopener noreferrer" target="_blank"><u>ETH</u></a>, which rejected firmly off fresh all-time highs. After coming within a whisker of US$5,000 the prior week, ETH pulled back to test key support around US$4,300, closing the week down -8.07%. Despite the correction, ETH still closed August with a monthly gain of +18.81%, underscoring the strength of its broader uptrend.</p><p><strong>ETF Flows:&nbsp;</strong></p><p>Price weakness did little to deter institutional demand. Spot ETH ETFs recorded over US$1.08 billion of inflows during the week, with Friday marking the only day of net outflows, according to <a href="https://sosovalue.com/assets/etf/us-eth-spot" rel="noopener noreferrer" target="_blank"><u>SoSoValue</u></a>. For August, ETH ETFs attracted nearly US$3.9 billion in total inflows, highlighting persistent institutional investor appetite.</p><p><strong>Corporate Treasury Demand:&nbsp;</strong></p><p>On the corporate side, SharpLink Gaming (SBET) <a href="https://www.coindesk.com/business/2025/08/26/joe-lubin-s-sharplink-boosts-eth-holdings-to-nearly-800k-raised-usd361m-in-fresh-capital" rel="noopener noreferrer" target="_blank"><u>disclosed</u></a> the addition of 56,533 ETH to its balance sheet, bringing total holdings to approximately US$3.6 billion. The firm raised US$360.9 million in net proceeds last week and still retains US$200 million in cash, signalling potential for further ETH acquisitions.&nbsp;</p><h2><strong>Altcoins</strong></h2><p>Large-cap altcoins retreated across the board this week, with all majors posting losses. <a href="https://coinstash.com.au/bnb/buy" rel="noopener noreferrer" target="_blank"><u>Binance Token (BNB)</u></a> held up best, slipping -2.14%, followed by <a href="https://coinstash.com.au/sol/buy" rel="noopener noreferrer" target="_blank"><u>Solana (SOL)</u></a> at -2.60%. <a href="https://coinstash.com.au/trx/buy" rel="noopener noreferrer" target="_blank"><u>Tron (TRX)</u></a> declined -5.82%, ending its nine-week winning streak, while <a href="https://coinstash.com.au/doge/buy" rel="noopener noreferrer" target="_blank"><u>Dogecoin (DOGE)</u></a> and <a href="https://coinstash.com.au/xrp/buy" rel="noopener noreferrer" target="_blank"><u>XRP (XRP)</u></a> dropped -7.81% and -8.23% respectively. <a href="https://coinstash.com.au/ada/buy" rel="noopener noreferrer" target="_blank"><u>Cardano (ADA)</u></a> was the weakest performer, sliding -10.70% and extending its recent downtrend,</p><h3><strong>Biggest Gainers:</strong></h3><ul><li><strong>Cronos (CRO) +86.79%</strong>: <a href="https://coinstash.com.au/cro/buy" rel="noopener noreferrer" target="_blank"><u>CRO</u></a> soared after Trump Media &amp; Technology Group <a href="https://decrypt.co/336876/trump-media-crypto-com-reveal-6-4-billion-cronos-treasury-plan" rel="noopener noreferrer" target="_blank"><u>announced</u></a> a partnership with Crypto.com, revealing plans to acquire US$6.4 billion worth of CRO tokens to establish a large-scale crypto treasury.</li><li><strong>Pyth Network (PYTH) +48.91%</strong>: <a href="https://coinstash.com.au/pyth/buy" rel="noopener noreferrer" target="_blank"><u>PYTH</u></a> rallied after being <a href="https://www.pyth.network/blog/pyth-network-selected-by-u-s-department-of-commerce-to-verify-and-distribute-economic-data-onchain" rel="noopener noreferrer" target="_blank"><u>selected</u></a> by the U.S. Department of Commerce to provide on-chain verification and distribution of official economic data, including GDP figures.</li><li><strong>Story (IP) +26.55%:</strong> <a href="https://coinstash.com.au/ip/buy" rel="noopener noreferrer" target="_blank"><u>IP</u></a> surged after the Story Foundation <a href="https://x.com/StoryProtocol/status/1961830159926854029" rel="noopener noreferrer" target="_blank"><u>revealed</u></a> a US$2.98 million token purchase as part of its ongoing US$82 million buyback programme running through mid-November.</li></ul><h3><strong>Biggest Losers:</strong></h3><ul><li><strong>Huobi (HT) -38.15%</strong>: <a href="https://coinstash.com.au/ht/buy" rel="noopener noreferrer" target="_blank"><u>HT</u></a> slumped after traders locked in gains from last week’s pump, triggering a steep correction.</li><li><strong>Bio Protocol (BIO) -36.41%</strong>: <a href="https://coinstash.com.au/bio0/buy" rel="noopener noreferrer" target="_blank"><u>BIO</u></a> dropped as whales and traders took profits following last week’s Aubrai Ignition Sale, reversing its pre-launch momentum.</li><li><strong>CHEX Token (CHEX) -31.07%</strong>: <a href="https://coinstash.com.au/chex/buy" rel="noopener noreferrer" target="_blank"><u>CHEX</u></a> plunged amid rumours suggesting millions of tokens were moved from team wallets to exchanges, fuelling concerns of insider selling.</li></ul><h2><strong>ICYMI - The Week in Crypto News</strong></h2><p>Here are a few key stories you may have missed:</p><ul><li><strong>US$2.5B+ in Solana DATs Announced</strong>: A wave of Solana Digital Asset Treasuries (DATs) are incoming, with Sharps Technology <a href="https://x.com/stsssol/status/1959994085844066694" rel="noopener noreferrer" target="_blank"><u>raising</u></a> US$400 million, Pantera Capital <a href="https://cryptonews.com.au/news/pantera-capital-targets-1-25b-raise-for-worlds-largest-solana-treasury-130556/" rel="noopener noreferrer" target="_blank"><u>reportedly</u></a> planning a US$1.25 billion bid to acquire and rebrand a Nasdaq-listed company into “Solana Co.”, a publicly traded vehicle focused on holding SOL; and a Galaxy–Multicoin–Jump consortium <a href="https://www.techinasia.com/news/crypto-giants-said-to-plan-1b-solana-treasury-deal-by-september" rel="noopener noreferrer" target="_blank"><u>preparing</u></a> a separate US$1 billion SOL treasury initiative.</li><li><strong>B Strategy to Launch US$1B BNB Treasury Company</strong>: Digital asset firm B Strategy, with backing from YZi Labs (formerly Binance Labs), announced plans to <a href="https://finance.yahoo.com/news/b-strategy-unveils-plans-binance-150057252.html" rel="noopener noreferrer" target="_blank"><u>launch</u></a> a US$1 billion BNB Treasury company listed in the U.S.</li><li><strong>Trump Media Reveal US6.4B CRO Treasury Deal</strong>: Trump Media &amp; Technology Group (DJT) <a href="https://decrypt.co/336876/trump-media-crypto-com-reveal-6-4-billion-cronos-treasury-plan" rel="noopener noreferrer" target="_blank"><u>announced</u></a> a joint venture with Crypto.com to invest in CRO tokens as a treasury asset and pursue a public listing via a SPAC merger.</li><li><strong>UAE Revealed as 4th Largest Government BTC Holder</strong>: Arkham Intelligence <a href="https://coincentral.com/uae-btc-treasury-hits-740m-ranking-4th-among-global-holders/" rel="noopener noreferrer" target="_blank"><u>identified</u></a> wallets tied to the UAE government holding 6,300 BTC (worth ~US$740 million), ranking it among the top sovereign Bitcoin holders.</li><li><strong>Bitwise Files for Chainlink (LINK) ETF</strong>: Bitwise has <a href="https://cointelegraph.com/news/bitwise-first-in-line-to-file-for-spot-chainlink-etf" rel="noopener noreferrer" target="_blank"><u>filed</u></a> to launch a spot ETF tracking Chainlink’s native token LINK, reflecting rising institutional interest in oracle networks.</li><li><strong>US Department of Commerce Publishes GDP Data Onchain</strong>: In a world-first, the U.S. Commerce Department has <a href="https://www.globalgovernmentfintech.com/department-of-commerce-usa-gdp-data-public-blockchains/" rel="noopener noreferrer" target="_blank"><u>uploaded</u></a> GDP figures to nine blockchains through partnerships with <a href="https://blog.chain.link/united-states-department-of-commerce-macroeconomic-data/" rel="noopener noreferrer" target="_blank"><u>Chainlink</u></a> and <a href="https://www.pyth.network/blog/pyth-network-selected-by-u-s-department-of-commerce-to-verify-and-distribute-economic-data-onchain" rel="noopener noreferrer" target="_blank"><u>Pyth Network</u></a>, enabling real-time macroeconomic data access across the DeFi ecosystem.</li><li><strong>Sonic Passes Proposal to Establish U.S. Entity</strong>: Sonic’s community <a href="https://snapshot.box/#/s:info.sonic/proposal/0x489f1583b2db1e6e752404626283249223a1dbfb7337f4fb7dbaf28b1da1b759" rel="noopener noreferrer" target="_blank"><u>approved</u></a> a proposal to create a U.S.-based entity and launch a $S ETF, marking a key step toward U.S. market expansion.</li><li><strong>Pudgy Penguins Game 'Pudgy Party' Launches on iOS and Android</strong>: NFT brand Pudgy Penguins, in collaboration with Mythical Games, has <a href="https://decrypt.co/337273/pudgy-penguins-game-pudgy-party-launches-on-ios-and-android" rel="noopener noreferrer" target="_blank"><u>launched</u></a> Pudgy Party—a multiplayer mobile game now available globally on both Android and iOS.</li></ul><h2><strong>Looking Forward - The Week Ahead</strong></h2><p>Key upcoming events to watch:</p><ul><li><strong>Starknet Upgrade (1 September)</strong>: Starknet v0.14.0 will <a href="https://docs.starknet.io/learn/cheatsheets/version-notes" rel="noopener noreferrer" target="_blank"><u>go live</u></a> on mainnet, introducing decentralised sequencing to the network.</li><li><strong>Ondo Finance Tokenised Stocks (3 September)</strong>: Ondo is <a href="https://x.com/OndoFinance/status/1958949354825273774" rel="noopener noreferrer" target="_blank"><u>expected</u></a> to launch tokenised stock offerings, bridging traditional equity markets with blockchain-based assets.</li><li><strong>U.S. Nonfarm Payrolls Data (5 September)</strong>: Crucial labour market data will be <a href="https://www.bls.gov/news.release/empsit.nr0.htm" rel="noopener noreferrer" target="_blank"><u>released</u></a>. Market participants will watch closely for signs of economic strength or weakness ahead of the next Fed meeting.</li><li><strong>Token Unlocks (1–7 September)</strong>: Over US$41 million in token unlocks are <a href="https://tokenomist.ai/" rel="noopener noreferrer" target="_blank"><u>scheduled</u></a> this week, including Ethena (ENA) at US$26.39 million (0.64% of circulating supply), IOTA at US$2.88 million (0.42% of circulating supply), and Immutable (IMX) at US$12.55 million (1.27% of circulating supply).</li></ul><p><br></p><p>Thanks for reading this week’s Market Pulse. We’ll be back next week with more insights from the crypto markets!</p>

Weekly Market Pulse - September 1, 2025

Weekly Market Pulse - 01/09/25

<h1><strong>Crypto vs Stock Trading Explained</strong></h1><p>Are you ready to start investing but not sure whether to choose stocks or crypto? You're not alone. With so much buzz around cryptocurrency and the long-standing trust in the stock market, it can be tough to know where to begin. Both offer opportunities for growth, but they come with different risks, rewards, and rules. Understanding how they compare is the first step towards making confident investment decisions.</p><p>Stocks have long been considered a reliable investment, with centuries of financial history and well-established regulations backing them. Cryptocurrencies, on the other hand, are the newcomers. Bursting into the mainstream spotlight in recent years, digital assets like Bitcoin and Ethereum have changed the way people think about money and investing.</p><p>In this article, we will break down the core differences between stocks and crypto, highlight their unique features, and help you understand which option may better align with your financial goals. Whether you're looking to invest for the first time or simply expand your knowledge, this guide is designed to give you a clear, practical foundation.</p><h2><strong>Key Takeaways</strong></h2><ul><li>Stocks represent ownership in a company, while cryptocurrencies are digital assets built on blockchain technology.</li><li>Crypto markets run 24 hours a day, 7 days a week. Stock markets only trade during business hours on weekdays.</li><li>Stocks are more stable and heavily regulated. Cryptocurrencies have higher risk, but also greater potential for rapid returns.</li><li>You do not have to choose just one. Diversifying between crypto and stocks can help balance your&nbsp;portfolio.</li><li>Knowing the strengths and risks of each asset class can help you decide what fits your financial goals.</li></ul><h2><strong>What is a Cryptocurrency?</strong></h2><p>A cryptocurrency is a digital form of money that uses cryptography to secure transactions and blockchain technology to record them. Unlike traditional money, which is issued and controlled by governments, cryptocurrencies are decentralised. This means no single institution, such as a central bank, oversees them.</p><p>Instead, cryptocurrencies operate on peer-to-peer networks, where a global community of users validates and shares the transaction history. This system creates transparency, enhances security, and makes it possible to move money quickly and directly between people anywhere in the world, without needing a bank.</p><p>The first and most widely known cryptocurrency, <a href="https://coinstash.com.au/btc/buy" rel="noopener noreferrer" target="_blank"><u>Bitcoin (BTC)</u></a>, was introduced in 2009. It was designed as an alternative to fiat currencies, allowing users to transfer value without relying on a third party. Since then, thousands of other cryptocurrencies, known as altcoins, have been developed.</p><p>For example, <a href="https://coinstash.com.au/eth/buy" rel="noopener noreferrer" target="_blank"><u>Ethereum (ETH)</u></a> supports smart contracts and decentralised apps, <a href="https://coinstash.com.au/xrp/buy" rel="noopener noreferrer" target="_blank"><u>Ripple (XRP)</u></a> focuses on international payments, and <a href="https://coinstash.com.au/doge/buy" rel="noopener noreferrer" target="_blank"><u>Dogecoin (DOGE)</u></a>, originally created as a joke, has become a widely traded meme coin with a strong community following.</p><p>Each cryptocurrency serves a different purpose, from enabling digital payments and financial services to powering virtual economies and online ownership of digital items. This diversity is one reason why crypto continues to grow and evolve as part of the modern financial world.</p><h2><strong>What is a Stock?</strong></h2><p>A stock, also known as a share or equity, represents a small piece of ownership in a company. When you buy a stock, you become a shareholder - meaning you own a portion of that company. If the company grows and becomes more valuable, the value of your stock can grow as well.</p><p>Companies sell stocks to raise money that helps fund their operations, develop new products, or expand into new markets. When a company is publicly listed, its shares can be bought and sold on stock exchanges like the Australian Securities Exchange (ASX) or NASDAQ in the United States.</p><p>Investors can buy and sell these shares through a brokerage account. Stock prices move up or down based on how the company is performing, what’s happening in the economy, and how people feel about the market overall.</p><p>Owning stock gives you a stake in the business, and in some cases, it may also come with voting rights and the chance to earn dividends, which are payments made to shareholders when the company is doing well.</p><h2><strong>Key Differences Between Stocks and Crypto</strong></h2><p>While both cryptocurrencies and stocks are tradable&nbsp;assets, they are fundamentally different in how they are designed, accessed, and valued. Here are some of the key areas where they differ:</p><h3><strong>Ownership and Purpose</strong></h3><p>When you buy a stock, you are buying a piece of a company. This ownership may come with shareholder rights, like voting on company decisions or receiving dividends. Stocks are tied to the success and performance of the business behind them.</p><p>Cryptocurrencies, on the other hand, are digital tokens. They do not usually give you ownership in a company. Most are designed for specific functions, such as powering a blockchain platform, enabling transactions, or representing digital value. For example, BTC acts as a decentralised currency, while ETH fuels smart contracts. Their value comes from how people use them, not from company profits.</p><h3><strong>Functionality and Use Cases</strong></h3><p>Stocks are primarily investment tools tied to the performance of a company. Their main use is to grow wealth through capital gains and, in some cases, dividend income. Cryptocurrencies, however, serve a broader range of functions. Some are designed as digital money for everyday use, while others support decentralised applications, enable programmable contracts, or provide access to blockchain-based services. This wide variety of use cases is one reason why the crypto space continues to expand and innovate.</p><h3><strong>Trading Market Hours</strong></h3><p>Stocks trade during specific business hours on weekdays. For example, the ASX is open from 10 a.m. to 4 p.m. local time. Crypto markets, by contrast, are always open. You can buy, sell, or trade digital assets 24/7, including weekends and holidays. This round-the-clock access can be convenient, but it also means price swings can happen at any time.</p><h3><strong>Regulation and Risk</strong></h3><p>Stock markets are heavily regulated to protect investors. Companies must follow strict rules, regularly report earnings, and meet legal standards. This structure adds transparency and reduces fraud.</p><p>Cryptocurrencies operate in a more flexible, and sometimes uncertain, regulatory space. Rules vary widely between countries and are still evolving. While this creates innovation, it can also increase risks. Not all crypto projects are trustworthy, and due diligence is essential.</p><h3><strong>Market Volatility</strong></h3><p>Cryptocurrencies are known for their dramatic price swings. This high volatility can lead to rapid gains but also sharp losses, often within short time frames. Stocks, especially those from well-established companies, tend to show more predictable price movements. However, they are still subject to economic news, market trends, and global events, which can affect prices.</p><h3><strong>Supply and Issuance</strong></h3><p>Stocks can be issued or expanded at the discretion of the company, often to raise additional capital. This can increase the number of shares in circulation, potentially diluting existing shareholders' value. In contrast, many cryptocurrencies have a fixed or limited supply coded directly into their underlying technology. For example, Bitcoin is capped at 21 million coins, a rule enforced by its protocol. This built-in scarcity can influence how people value and trade these digital assets over time.</p><h3><strong>Access and Trading</strong></h3><p>Trading stocks typically requires a brokerage account and is usually done using traditional currencies like the Australian dollar. Stock exchanges are also limited to set trading hours. By contrast, crypto trading can be done around the clock on a wide range of platforms. Many crypto exchanges support trading pairs, allowing you to swap one cryptocurrency for another directly, often without needing fiat currency.&nbsp;</p><h3><strong>Maturity of the market</strong></h3><p>The stock market has been around for centuries and is deeply embedded in the global financial system. It is well regulated, widely trusted, and supported by established infrastructure.</p><p>Cryptocurrencies, by comparison, are relatively new. While awareness and adoption have grown quickly, only a small percentage of the global population currently owns digital assets. The crypto market is still maturing, and although it shows promising potential, it has yet to achieve the same level of stability or mainstream acceptance as traditional markets.</p><h3><strong>Potential for Growth</strong></h3><p>Stocks, especially when held long term, have historically delivered consistent returns. Major indices like the ASX 200 or S&amp;P 500 reflect the gradual growth of successful businesses over time. However, explosive gains are less common in the stock market.</p><p>Cryptocurrencies are a younger and more dynamic asset class. Some coins have delivered extraordinary returns in short periods, but these gains are often accompanied by sharp declines. While the potential upside is greater, so is the risk.</p><h3><strong>Security and Storage</strong></h3><p>Stocks&nbsp;are typically held within a brokerage account and safeguarded by regulated institutions. Investors do not need to manage the security of their holdings directly.</p><p>With crypto, the responsibility for security often lies with the investor. You must choose how to store your assets - whether through an online exchange, a mobile app, or hardware wallets. Poor storage practices or lost access credentials can result in permanent loss of funds.</p><h2><strong>Similarities Between Crypto and Stock Trading</strong></h2><p>Despite their differences, crypto and stocks share a number of similarities that make them accessible and attractive to everyday investors:</p><h3><strong>Easy Access via Digital Trading Platforms</strong></h3><p>Whether you're investing in stocks or cryptocurrencies, you can typically do so through a digital platform, app, or exchange. These platforms often offer a user-friendly experience with charts, order books, and trade history tools.</p><h3><strong>Same Order Types</strong></h3><p>Both markets support common order types such as market orders (buy or sell at the best available price), limit orders (buy or sell at a specified price), and stop-loss orders (automatically sell if the price drops to a certain level). These tools help investors manage risk and control how they enter or exit the market.</p><h3><strong>Low Barriers to Entry</strong></h3><p>You do not need a large amount of capital to get started in either market. Fractional investing and low fees and account trade minimums allow beginners to invest small amounts and grow over time.</p><h3><strong>Online Access and Real-Time Data</strong></h3><p>Investors in both markets can track performance, read news updates, and monitor real-time prices from their devices. This level of access helps keep you informed and in control.</p><h3><strong>Speculation and Long-Term Strategies</strong></h3><p>Whether you're looking for quick gains or planning to hold assets for years, both crypto and stocks can be part of a broader investment strategy. You can choose between short-term trading or long-term investing depending on your goals and risk appetite.</p><p>These shared features have helped make both markets increasingly popular with individual investors, especially as technology continues to lower the barriers to participation.</p><h2><strong>Pros &amp; Cons Of Investing In Crypto Vs Stocks</strong></h2><p>Now that we have discussed the differences between stocks and cryptocurrencies, let's explore the pros and cons of investing in each. Please note that this is not&nbsp;investment advice, and you should always do your own research before making any investment decisions.</p><h3><strong>Pros of Crypto&nbsp;</strong></h3><ul><li><strong>Accessible</strong>: Anyone with an internet connection can access crypto. It is a borderless market designed to operate without the need for third-party merchants or any other intermediaries.</li><li><strong>Decentralised</strong>: Most cryptocurrency systems don’t rely on any central authority, making them resistant to government interference or manipulation, promoting trust in the market.</li><li><strong>Dynamic</strong>: Investors have many options to grow their holdings beyond trading crypto, including yield farming, staking, loaning their assets, and providing liquidity, making the market more versatile.</li><li><strong>Liquidity</strong>: Cryptocurrencies are highly liquid, enabling the easy exchange of popular crypto assets for other coins, tokens, or cash. Investors can easily enter and exit the market by converting their crypto into cash.</li><li><strong>High Growth Potential</strong>:&nbsp;Some cryptocurrencies have delivered significant returns in short timeframes, attracting investors looking for rapid growth.</li></ul><h3><strong>Cons of Crypto</strong></h3><ul><li><strong>Volatility</strong>: The crypto market is famously prone to dramatic price swings. However, with the potential for high returns, comes an equal risk of dramatic losses.</li><li><strong>Regulatory Uncertainty</strong>: Cryptocurrencies are legal in many jurisdictions, yet they still lack comprehensive and uniform regulation globally. As a result, investors should conduct thorough legal research and remain aware of potential compliance issues, depending on their location.</li><li><strong>Custody Risks</strong>: Self-custodying assets can be a means of securing the network and minimizing the risk of personal fund theft. However, if an investor loses access to their wallet or misplaces their key or seed phrase, their digital currencies will be irretrievable.</li><li><strong>Returns Not Guaranteed</strong>: As with all investments, there is a level of risk involved. The past performance of an asset does not necessarily indicate future performance, and crypto&nbsp;investors should be aware of the potential volatility and uncertainties that come with investing in the crypto market.</li></ul><h3><strong>Pros of Stocks</strong></h3><ul><li><strong>Regulated</strong>: Publicly traded stocks are heavily regulated in most countries around the world, with the intention of protecting investors. To be listed on a stock exchange like the NYSE or LSE&nbsp;companies must meet strict requirements.</li><li><strong>Dividends</strong>: Many stocks or shares will also pay investors dividends, providing a passive income for investors when the company does well.</li><li><strong>Long-Term Track Record</strong>: Stock markets have historically delivered strong returns over the long run.</li></ul><h3><strong>Cons of Stocks</strong></h3><ul><li><strong>Volatility Still Exists</strong>: While generally more stable than crypto, stocks can still be affected by economic shifts and global events.</li><li><strong>Higher Fees</strong>: In most cases, the trading fees associated with stock exchange transactions are relatively high, and there are more of them compared to crypto exchanges. Unfortunately, these fees can eat into your profits. Be prepared to pay more if you want to trade stocks.</li><li><strong>Limited Trading Hours</strong>: Stock exchanges and the stock market operate on a set schedule, which can be frustrating for investors looking to trade outside of regular hours. Unlike stocks, the crypto market is open 24/7, around the clock.</li><li><strong>Returns not guaranteed</strong>: No investment is a sure thing, and that goes for both crypto and stocks alike. Despite the past performance of an asset, there's always a level of risk involved.</li></ul><h2><strong>Cryptocurrencies vs Stocks: What's the Better Choice?</strong></h2><p>Ultimately, the right choice comes down to your personal goals, risk tolerance, and investment style. Stocks tend to suit those who prefer stability, long-term growth, and a well-regulated environment. They are often seen as the cornerstone of a balanced portfolio.</p><p>Cryptocurrencies, by contrast, offer innovation, fast-moving markets, and the potential for higher short-term returns. However, they also carry greater risks due to price volatility and a changing regulatory landscape.</p><p>The good news is, you do not have to pick just one. Many investors are choosing to build diversified portfolios that include both asset classes. By combining the predictability of traditional stocks with the dynamism of crypto, you can spread your risk and tap into different types of growth opportunities.</p><p>This blended approach helps you stay flexible and better prepared for whatever the market brings - whether it's a bull run in tech stocks or a surge in digital assets. Whatever your path, the key is to stay informed, manage your risks, and invest according to your own financial goals and comfort level.</p><h2><strong>FAQs</strong></h2>

CompactFAQ

<p><sub style="vertical-align: sub; font-size: smaller;"><strong><em>Disclaimer</em></strong><em>: This article and its contents are intended for informational purposes only, and do not constitute financial, investment, trading or any other advice from TWMT Pty Ltd, trading as Coinstash AU ("Coinstash"). Coinstash is not a licensed financial advisor and does not provide financial advice. You should not make any decision, financial, investment, trading or otherwise, based on any of the information presented in this webinar or relevant materials without undertaking independent due diligence and consultation with a professional financial adviser. The information presented in this article may be inaccurate and no representations are made as to its truthfulness or accuracy. The views and opinions expressed in the quoted material are those of the original authors and do not necessarily reflect the views of Coinstash. All quotes have been used for informational purposes and have been attributed to their respective sources to the best of our ability.You understand that you are using any and all information available in or through this webinar or relevant materials at your own risk. Cryptocurrency is a highly volatile and risky investment. You should consider seeking financial, legal, tax or other professional advice to check how the information relates to your unique circumstances. Coinstash shall not be held responsible or liable for any losses, whether due to negligence or otherwise, stemming from the use of, or reliance upon, the information provided directly or indirectly in this article.</em></sub></p><p><br></p>

Crypto vs Stock Trading: Key Differences, Similarities, and Risks

<h1><strong>Crypto Stablecoins Explained: A Beginner’s Guide</strong></h1><p>As cryptocurrency becomes more mainstream, stablecoins have taken on an important role in the digital finance space. They are designed to bring together the best of both worlds - offering the speed, innovation, and flexibility of crypto with the steady value of traditional currencies like the US dollar or Australian dollar.</p><p>From everyday payments and trading to powering decentralised finance (DeFi) platforms, stablecoins help bring balance to what can often be a fast-moving and unpredictable market.</p><p>If you are new to crypto or simply want to understand what stablecoins do and why they matter, this guide will take you through everything you need to know: how they work, the different types, where they are used, and the key risks to be aware of.</p><h2><strong>Key Takeaways</strong></h2><ul><li><strong>Stablecoins are a type of cryptocurrency that aim to keep a steady value</strong>, often by being linked to a real-world asset like the US dollar, Australian dollar, or even gold.</li><li><strong>They provide a more stable way to store and move money on the blockchain</strong>, avoiding the big price swings you often see with other cryptocurrencies like Bitcoin.</li><li><strong>Not all stablecoins work the same way - </strong>some are backed by cash in a bank, others use crypto as collateral, some are tied to physical commodities, and a few rely on algorithms to control their value.</li><li><strong>They are used in lots of ways</strong>, including fast international payments, trading, earning interest through DeFi, and as a simpler entry point into the crypto world.</li><li><strong>But they are not risk-free - </strong>things like regulation, trust in the issuer, lack of transparency, or market stress can all affect how stable they really are.</li></ul><h2><strong>What Are Stablecoins?</strong></h2><p>Stablecoins are a type of cryptocurrency designed to keep their value steady over time. Unlike other cryptocurrencies like <a href="https://coinstash.com.au/btc/buy" rel="noopener noreferrer" target="_blank"><u>Bitcoin</u></a> or <a href="https://coinstash.com.au/eth/buy" rel="noopener noreferrer" target="_blank"><u>Ethereum</u></a>, which can rise or fall in price quite dramatically, stablecoins aim to stay consistent. They do this by being linked or pegged to something more stable, like a fiat currency (such as the AUD or USD) or a physical asset like gold.</p><p>Because of this stability, stablecoins are far more practical for everyday use. Whether you are sending money overseas, holding digital savings, or using decentralised finance (DeFi) platforms, stablecoins make it easier to use crypto without worrying about major price swings.</p><h2><strong>How Do Stablecoins Work?</strong></h2><p>At their core, all stablecoins are designed to do one main thing: keep their price stable by closely following the value of another asset. Most of the time, that asset is a fiat currency like the US dollar or Australian dollar, but in some cases, it could be something like gold.</p><p>While the goal is the same, the way each stablecoin achieves this stability can differ quite a bit. Some use traditional bank reserves, others rely on cryptocurrency as collateral, and some use smart contracts and algorithms to control supply and demand.</p><p>The type of stablecoin you choose can affect how reliable or risky it might be, so understanding how they work is key to using them confidently.</p><h2><strong>Why are Stablecoins Important?</strong></h2><p>One of the biggest challenges with cryptocurrencies is their price volatility. While this can create opportunities for traders, it makes everyday use more difficult. That is where stablecoins come in.</p><p>Stablecoins bring a much-needed sense of predictability to crypto. Because their value stays relatively constant, they are ideal for things like sending money, storing value, and using financial tools on decentralised platforms.</p><p>They also make it easier to move money around the world without needing a central bank. Whether it is for cross-border payments, remittances, or accessing DeFi services, stablecoins allow people to tap into the benefits of blockchain technology in a way that feels more familiar and manageable.</p><p>In short, stablecoins help make crypto more practical, accessible, and useful in everyday life.</p><h2><strong>Key Benefits of Stablecoins</strong></h2><p>Stablecoins bring a range of practical advantages to the table, making them a popular choice among everyday users, crypto traders, and developers alike. Here are some of the main benefits:</p><h3><strong>Reduced Volatility</strong></h3><p>One of the biggest selling points of stablecoins is that they are designed to hold their value. Unlike cryptocurrencies that can swing wildly in price, stablecoins aim to remain steady, making them a more dependable option for storing and using funds.</p><h3><strong>Borderless Payments</strong></h3><p><span style="font-size: 16px;">Like other digital currencies, stablecoins can be sent across the world without the need for banks or third-party services. This makes them especially useful for international transfers and sending money to family and friends abroad.</span></p><h3><strong>Lower Transaction Fees</strong></h3><p><span style="font-size: 16px;">Because they run on blockchain networks, stablecoin transactions are often cheaper than traditional banking or money transfer services, particularly when it comes to sending money across borders.</span></p><h3><strong>High Liquidity and Flexibility</strong></h3><p>Stablecoins are widely accepted on crypto exchanges and DeFi platforms. This makes it easy to trade them, swap between other assets, or cash out when needed.</p><h3><strong>Smart Contract Integration</strong></h3><p><span style="font-size: 16px;">Stablecoins can be used in smart contracts, which power many DeFi applications. This includes lending, borrowing, staking, and other automated financial tools that operate without middlemen.</span></p><h3><strong>Digital Access to Fiat Value</strong></h3><p><span style="font-size: 16px;">With stablecoins, users can hold digital versions of traditional currencies on the blockchain, without needing to convert back to actual cash. This makes it easy to stay in the crypto ecosystem while keeping exposure to familiar currencies.</span></p><h2><strong>Types of Stablecoins</strong></h2><p>While all stablecoins aim to maintain a stable value by being pegged to another asset, the way they achieve this can vary significantly. These mechanisms not only affect how each stablecoin functions but also influence their risk, reliability, and ideal use cases.</p><p>Here are the four main types&nbsp;you’ll encounter in the stablecoin market:</p><h3><strong>Fiat-Collateralised Stablecoins</strong></h3><p>These are the most common type of stablecoin. Each one is backed one-to-one by traditional currency, like the US Dollar, Euro, or Australian Dollar. The actual money is held in reserve by a regulated bank or custodian. Some issuers also hold safe investments, such as short-term government bonds or other cash equivalents.</p><ul><li><strong>How it works</strong>: When someone buys fiat backed stablecoins, the issuer stores the same amount of money in reserve. If the user decides to redeem the stablecoin, it is removed from circulation, and the matching amount of fiat currency is returned to them.</li><li><strong>Why it matters</strong>: This type is simple and trusted. It is often used for trading, sending payments, or just holding value in the crypto ecosystem.&nbsp;</li><li><strong>Examples</strong>: USDT (Tether), USDC (USD Coin), AUDD (Australian Dollar Digital).</li></ul><p>These stablecoins are highly liquid, widely accepted, and trusted by many due to regular audits and regulatory oversight.&nbsp;</p><h3><strong>Crypto-Backed Stablecoins</strong></h3><p>Rather than using fiat reserves, these stablecoins are backed by other cryptocurrencies. Since crypto prices can be quite volatile, these stablecoins are usually over-collateralised - meaning they hold more value in reserve than the amount issued.</p><ul><li><strong>How it works</strong>: Users deposit crypto into a smart contract and receive stablecoins in return. If the value of the crypto backing drops too much, the system may automatically sell some of it to keep the peg stable.</li><li><strong>Why it matters</strong>: These stablecoins are decentralised and run on code rather than companies. However, they are more exposed to the ups and downs of the cryptocurrency market.</li><li><strong>Example</strong>: DAI, backed by a variety of crypto assets through the MakerDAO protocol.</li></ul><p>This type appeals to users who prioritise decentralisation and transparency, but it’s important to understand the risks tied to fluctuating crypto prices.</p><h3><strong>Algorithmic Stablecoins</strong></h3><p>Algorithmic stablecoins use software rules, not assets, to keep their value stable. They rely on algorithms and smart contracts to adjust the supply of coins based on market demand.</p><ul><li><strong>How it works</strong>: If demand increases and the price rises above the peg, new tokens are minted. If the price drops, tokens are burned or removed to reduce supply. Some models use a second token to help stabilise value through arbitrage.</li><li><strong>Why it matters</strong>: Algorithmic stablecoins aim to be fully decentralised and do not require physical reserves, which can make them more efficient. But they are also more fragile.</li><li><strong>Example</strong>:&nbsp;TerraUSD (UST) was one of the most well-known algorithmic stablecoins, but it famously collapsed in 2022, leading to widespread losses and shaking confidence in the algorithmic stablecoin model.</li></ul><p>While innovative, this kind of stablecoin carries the highest risk due to its lack of collateral and heavy reliance on market confidence.</p><h3><strong>Commodity-Backed Stablecoins</strong></h3><p>These stablecoins are backed by physical assets such as gold, silver, or even oil. Each token represents a unit of the underlying commodity, offering a way to gain exposure to real-world assets through crypto.</p><ul><li><strong>How it works</strong>: The issuer holds the actual commodity in reserve, and users can sometimes redeem tokens for the physical asset or its cash equivalent.</li><li><strong>Why it matters</strong>: These tokens let users hold a digital version of tangible assets like gold, which is appealing during times of inflation or market uncertainty.</li><li><strong>Examples</strong>: PAX Gold (PAXG), Tether Gold (XAUT)</li></ul><p>Commodity-backed stablecoins combine the benefits of blockchain with the stability of traditional stores of value, without the hassle of physically owning or storing the commodity.</p><h2><strong>What Are the Risks of Stablecoins?&nbsp;</strong></h2><p>Stablecoins are designed to offer more predictability than other cryptocurrencies, but that does not mean they are risk-free. In fact, several types of risk can affect how stable a stablecoin really is, especially during times of financial stress or uncertainty in the crypto market.</p><p>Here are the main risks to understand before using or holding stablecoins:</p><h3><strong>Stablecoin Regulation Risk</strong></h3><p>Governments around the world, including in Australia, are still figuring out how stablecoins should be regulated. As the legal framework evolves, new rules could change how stablecoins are issued, traded, or accessed.</p><p>In Australia, upcoming regulations could bring stablecoin issuers under the supervision of ASIC (Australian Securities and Investments Commission) and AUSTRAC. This may require full reserve backing, clear redemption policies, and compliance with financial crime laws. For users, this could mean changes to which stablecoins are available and how they can be used.</p><h3><strong>Issuer and Counterparty Risk</strong></h3><p>Most stablecoins depend on a central company to hold and manage the reserves that back the token. If that issuer:</p><ul><li>Becomes insolvent</li><li>Fails to maintain proper reserves</li><li>Faces legal or operational trouble</li></ul><p>...it could impact your ability to redeem your stablecoins or lead to a loss in confidence. The same risk applies to third-party custodians, such as banks or financial partners. If they face problems, like bankruptcy, asset freezes, or hacks, user funds could be affected.</p><h3><strong>Depegging Risk</strong></h3><p>Stablecoins are built to stay at a fixed price, but this peg can break. If too many people try to redeem their tokens at once or if the issuer’s reserves are questioned, the value of a stablecoin can drop below its target. This is known as “depegging.”</p><p>For example, in March 2023, USDC briefly fell below one dollar after concerns about its exposure to Silicon Valley Bank. It later recovered, but the event showed that even large stablecoins can be vulnerable.</p><h3><strong>Transparency and Trust Issues</strong></h3><p>Some stablecoin issuers publish regular audits and reserve data, which helps build trust. Others do not, or they release unclear or inconsistent information. Without transparency, it is difficult to know whether a stablecoin is truly backed 1:1 as claimed.</p><p>Tether (USDT), one of the largest stablecoins, has faced scrutiny over its reserve practices in the past, which highlights the need for clear, reliable data when choosing a stablecoin.</p><h3><strong>Technical and Operational Risks</strong></h3><p>Algorithmic stablecoins are particularly risky because they rely on software and smart contracts rather than real-world backing. If the algorithm fails, is exploited, or cannot handle rapid market changes, the stablecoin can collapse completely.</p><p>The most well-known example is TerraUSD (UST), which lost its peg in 2022 and caused billions in losses across the crypto space.</p><h3><strong>Centralisation Concerns</strong></h3><p>While crypto is often celebrated for being decentralised, many stablecoins are run by private companies. This means:</p><ul><li>They may have the ability to freeze user funds if required by law</li><li>Users must trust the issuer to act responsibly</li><li>Access to the stablecoin can be restricted, reducing its openness</li></ul><p>For users who value permissionless, decentralised finance, this centralisation can be a drawback.</p><h2><strong>The Growing Role of Stablecoins</strong></h2><p>Stablecoins are becoming one of the most impactful innovations in the world of cryptocurrency. Often referred to as “crypto’s killer app”, these digital tokens combine steady value with the power of blockchain, unlocking a wide range of real-world and digital uses.</p><h3><strong>A Bridge Between Traditional Money and Cryptocurrency</strong></h3><p>Stablecoins make it easier for everyday people and businesses to step into the world of crypto without having to worry about price swings. Because their value is tied to something stable, they feel more familiar and practical than highly volatile cryptocurrencies.</p><p>This makes them the perfect “on-ramp” to digital assets, helping users move between the traditional financial system and the crypto world with ease.</p><h3><strong>Essential for Trading and Market Stability</strong></h3><p>Stablecoins play a huge role in crypto markets. Most trading pairs on exchanges involve a stablecoin rather than regular money. That means if you are buying Bitcoin or Ethereum, you are likely doing it with USDT, USDC, or a similar coin.</p><p>They also help traders move funds quickly between assets without going back to fiat. In futures and derivatives markets, stablecoins are now more commonly used than Bitcoin itself for margin. This shift is driven by their stable pricing and easy accounting.</p><h3><strong>Powering DeFi and Blockchain Innovation</strong></h3><p>Stablecoins are the fuel behind many of the biggest DeFi platforms. They are used as collateral for loans, as liquidity for trading, and as a stable store of value when earning yield.</p><p>This is one reason why DeFi has grown so quickly in recent years. In fact, analysts expect the total value locked (TVL) in DeFi platforms to jump to more than $330 billion by 2030 - with stablecoins playing a key part in that growth.</p><h3><strong>Financial Access for the Unbanked</strong></h3><p>In many parts of the world, people still struggle to access basic financial services. In some countries, local currencies lose value quickly due to inflation. In others, banking infrastructure is limited or unreliable.</p><p>Stablecoins offer a practical alternative. Anyone with a mobile phone and internet can use stablecoins to store value, make payments, and send money abroad - without needing a bank. They are especially helpful for sending remittances, where people often pay high fees using traditional providers.</p><h3><strong>A Global Medium of Exchange</strong></h3><p>Whether it is for trading crypto, using DeFi apps, making cross-border payments, or simply holding a more stable form of digital money, stablecoins are becoming central to how people use crypto. Their global reach, combined with predictable value, makes them useful in both advanced markets and emerging economies.</p><h2><strong>Closing Thoughts</strong></h2><p>Stablecoins have quickly become one of the most practical and widely used innovations in the world of cryptocurrency. By combining the predictability of traditional money with the flexibility and speed of blockchain, they offer a powerful solution to some of crypto’s biggest challenges—especially its volatility.</p><p>For everyday users, stablecoins make it easier to send money across borders, access DeFi services, or simply hold digital value without worrying about price swings. For traders and developers, they provide essential liquidity and a stable base for innovation. And for people in regions with limited access to banking or unstable local currencies, they can offer a reliable and affordable financial alternative.</p><p>As adoption gains momentum, stablecoins are no longer just an alternative, they’re poised to revolutionise the world of finance. They could redefine how payments work, how money is stored and transferred, and how financial products are designed and delivered. Whether you're beginning your crypto journey or already active in the space, understanding stablecoins is essential - they are fast becoming the bridge between conventional finance and a more efficient, inclusive, and programmable future.</p><h2><strong>FAQs</strong></h2>

What Are Stablecoins and How Do They Work?

<h1><strong>StashPoints (STASH) Explained: Everything You Need to Know</strong></h1><p>At Coinstash, we believe crypto trading should be more rewarding.</p><p>That’s why we created StashPoints (STASH), our loyalty points within the Coinstash Rewards program. StashPoints are designed to give back to users for doing what they already enjoy on the platform, like trading, exploring features, and joining in-app promotions.</p><p>Whether you're new to Coinstash or just looking to get more value from your experience, here’s a simple guide to how StashPoints work and how you can start earning and using them.</p><h2><strong>What are StashPoints?</strong></h2><p>StashPoints are loyalty points that you earn by completing actions within the Coinstash app. You can think of them like frequent flyer miles, but for your crypto journey. The more you engage with the Coinstash platform through trading, the more points you earn.</p><p>In the app, StashPoints are displayed as STASH, but they are not a crypto token. They can’t be traded, transferred, or withdrawn. Instead, they unlock access to exciting rewards on the platform, including crypto, merchandise, giveaways, and future in-app experiences.</p><h2><strong>How can I earn StashPoints?</strong></h2><p>There are several ways to earn StashPoints on Coinstash:</p><p><strong>STASH Back</strong>: Get rewarded with STASH Back every time you trade. Earn 10 StashPoints for every AU$50 traded on Coinstash.</p><p><strong>Loyalty Balance</strong>: Holding a balance in Coinstash Loyalty earns you Reward Points. These can be converted into StashPoints inside the app.</p><p><strong>In-app Promotions</strong>: Complete missions, challenges, and featured promotions to earn bonus StashPoints. These opportunities are updated regularly and offer new ways to boost your rewards.</p><p><strong>More Ways to Earn STASH Coming Soon: </strong>We're always working on new features that give you more ways to earn StashPoints. Keep an eye on the app for the latest updates.</p><h2><strong>How do I check my StashPoints balance?</strong></h2><p>You can view and manage your StashPoints directly in the Rewards tab of the Coinstash app.</p><p>Inside the Rewards tab, you can:</p><ul><li>View your StashPoints balance</li><li>Track your promotion progress</li><li>Redeem your StashPoints for available rewards</li></ul><p>Everything you need is in one place, making it easy to stay on top of your progress.</p><h2><strong>What can I redeem my StashPoints for?</strong></h2><p>You can use your StashPoints to access a range of exciting rewards. Here’s a look at what’s available now:</p><p><strong>Crypto</strong>: Convert your StashPoints directly into a selection of cryptocurrencies.</p><p><strong>Entries into our Weekly Bitcoin Draw</strong>: Use your StashPoints to enter our draw for a chance to win $2,000 worth of Bitcoin. Each entry costs 1,000 StashPoints. T&amp;Cs apply and the draws are only available for a limited time period.</p><p><strong>Coinstash Merch</strong>: Use your StashPoints to unlock exclusive Coinstash-branded merch.</p><p><strong>In-app games and Mystery Boxes <em>(coming soon)</em></strong><em>: </em>Soon, you’ll be able to use StashPoints to redeem Mystery Boxes and spin the Wheel of Crypto for your chance to win fun surprises and crypto rewards. T&amp;Cs apply.&nbsp;</p><p>Some rewards are seasonal or limited-edition, so check the Rewards section regularly to see what’s available.</p><h2><strong>Final Thoughts</strong></h2><p>StashPoints are here to make your Coinstash experience more rewarding. Whether you're trading or completing in-app missions, every action helps you unlock something extra.</p><h2><strong>Ready to Start Earning StashPoints?</strong></h2><p>Download the Coinstash App and head to the Rewards tab to explore what’s waiting for you.</p><p><br></p><p>If you have more questions, you can find detailed answers in our<a href="https://help.coinstash.com.au/en/category/rewards-and-stashpoints-stash-q3c7js/" rel="noopener noreferrer" target="_blank"> <u>helpdesk articles on StashPoints and Rewards here</u></a>.</p><p><br></p><p><br></p><h2><strong>Frequently Asked Questions (FAQs)</strong></h2>

<p><sub style="vertical-align: sub; font-size: smaller;"><strong><em>Disclaimer</em></strong><em>: </em></sub><a href="https://help.coinstash.com.au/en/article/website-terms-and-conditions-gmyd3n/" rel="noopener noreferrer" target="_blank"><sub style="vertical-align: sub;"><u>T&amp;Cs</u></sub></a><sub style="vertical-align: sub; font-size: smaller;"> apply to Coinstash Rewards and the use of STASH. Separate </sub><a href="https://help.coinstash.com.au/en/category/promotions-1th3hsa/" rel="noopener noreferrer" target="_blank"><sub style="vertical-align: sub;"><u>T&amp;Cs</u></sub></a><sub style="vertical-align: sub; font-size: smaller;"> apply to individual promotions in the Coinstash Rewards program. Cryptocurrency is a highly volatile and risky investment. You should only invest money that you can afford to lose. Before investing in cryptocurrency, you should do your own research and understand the risks involved. For advice tailored to your personal circumstances, please consult a licensed financial adviser.&nbsp;</sub><strong>&nbsp;</strong></p><p><br></p>

StashPoints (STASH) Explained: Everything You Need to Know

StashPoints (STASH) Explained

<h1><strong>Spin to Win Up to $7,777 in Prizes</strong></h1><p><span style="font-size: 14px;">Coinstash is celebrating its 7th anniversary, and to show our appreciation to our incredible community, we're giving away up to $7,777 in prizes!</span></p><p><span style="font-size: 14px;">​You have the chance to win fantastic prizes like free crypto, a year of zero trading fees, two tickets to the Australian Crypto Convention, and a grand prize of $5,000 in Bitcoin (BTC).</span></p><p><strong style="font-size: 14px;">Promotion Period</strong><span style="font-size: 14px;">: 17 September 2024, 13:00 AEST – 17 October 2024, 23:59 AEST</span></p><h2><strong>How to Participate:</strong></h2><p><strong style="font-size: 14px;">1. Register</strong><span style="font-size: 14px;">: Enter your Coinstash email address on the </span><a href="https://coinstash.com.au/thewheel" rel="noopener noreferrer" target="_blank" style="font-size: 14px;">Wheel of Crypto Page to register</a><span style="font-size: 14px;">.</span></p><p><span style="font-size: 14px;">​​</span><strong style="font-size: 14px;">2. Trade &amp; Earn Spins:</strong><span style="font-size: 14px;">&nbsp;Trade $700 or more of any coin during the promotion period to earn 3 wheel spins. For every additional $700 traded, you’ll earn 3 more spins. The more you trade, the more spins you get!*</span></p><p><span style="font-size: 14px;">​​</span><strong style="font-size: 14px;">3. Spin to Win</strong><span style="font-size: 14px;">: Try your luck, and the $5,000 in Bitcoin (BTC) could be yours!</span></p>

<h2><strong>Terms and Conditions</strong></h2><p>Promotion Terms and Conditions can be found <a href="https://help.coinstash.com.au/en/article/coinstash-anniversary-wheel-of-crypto-f1yt6u/?bust=1726532131271" rel="noopener noreferrer" target="_blank"><u>here</u></a>.</p>

<p><br></p><p><strong style="font-size: 10px;">Disclaimer</strong><span style="font-size: 10px;">: This article and its contents are intended for informational purposes only, and do not constitute financial advice from TWMT Pty Ltd, trading as Coinstash AU ("Coinstash"). Coinstash is not a licensed financial advisor and does not provide financial advice. You should consider seeking financial, legal, tax or other professional advice to check how the information relates to your unique circumstances. Coinstash shall not be held responsible or liable for any losses, whether due to negligence or otherwise, stemming from the use of, or reliance upon, the information provided directly or indirectly in this article.</span></p>

7th Anniversary Wheel of Crypto Promotion

Anniversary Wheel of Crypto

<p>The curtain has just fallen on another financial year, and Australian crypto investors now find themselves at a familiar crossroads — navigating the complexities of declaring their crypto activities for tax purposes. With the Australian Taxation Office (ATO) intensifying its scrutiny on crypto transactions, ensuring accuracy in your tax declaration has never been more critical.</p><p>This year, we’ve partnered with<a href="https://www.syla.com.au/" rel="noopener noreferrer" target="_blank"> <u>Syla</u></a>, to provide some tips for a hassle-free tax reporting.</p><h2><strong>Understanding your crypto tax obligations</strong></h2><p>Before diving into the mechanics of calculating your crypto taxes, let's address the elephant in the room: Why do crypto investments concern the ATO?</p><p>Well, the ATO treats cryptocurrency as a form of property and subjects it to Capital Gains Tax (CGT). This means if you've sold, traded, spent, or gifted crypto, you're required to declare any capital gain or loss from those transactions.</p><p>Now, many investors believe that if they don’t withdraw their profits to an Australian bank account, they aren’t liable for tax.</p><p>This, unfortunately, is a pitfall you need to avoid.</p><p>The ATO requires reporting on all gains, regardless of whether they're converted to AUD or not. Every transaction — no matter how small — needs to be tracked and reported.</p><h2><strong>Steps to calculate your crypto taxes</strong></h2><h3>1. Collect your transaction history</h3><p>Record keeping is key. You can start by logging in to your Coinstash account, and downloading a copy of your transaction history from the Transactions page. This statement includes every trade, sale, purchase, and any other transactions which occurred on your account and is designed to meet the ATO record keeping requirements for cryptocurrency.</p><p>If you use Syla or another crypto tax software, you can also sync your transactions directly by setting up an API sync directly from Coinstash. This is also a great way to keep track of your tax position through the year.</p><h3>2. Select the right crypto tax software</h3><p>When it's time to determine your capital gains or losses — essentially, the fluctuation in value from when you acquired your cryptocurrency to when you parted with it — you need something dependable to avoid unnecessary headaches, a crypto tax software.</p><p>When deciding which crypto tax calculator to select, you should consider the following:</p><ul><li>Has the software been designed for Australian tax?</li><li>What is the cost, particularly if you have a lot of transactions?</li><li>Does it do any tax optimisation for you?</li></ul><p>We recommend giving Syla a go. It’s an Australian company, and their<a href="https://www.syla.com.au/" rel="noopener noreferrer" target="_blank"> crypto tax calculator</a> has been designed specifically to handle Australian tax, it also has built-in tax optimisation to help reduce your taxable income.</p><h2><strong>Strategic approaches to minimise your crypto tax bill</strong></h2><h3>3. Leverage tax-loss harvesting</h3><p>One effective strategy to reduce your crypto tax liability is tax-loss harvesting. This involves selling cryptocurrencies that are at a loss and using these losses to offset your capital gains. It’s a practical approach that can optimise your tax outcome, but timing and careful calculation are essential. Make sure you’re not doing a wash sale where you sell and immediately rebuy the same assets.</p><h3>4. Hold assets to benefit from long-term gains</h3><p>Assets held for over a year typically qualify for a CGT discount — currently, this is 50% for individuals. This means holding your cryptocurrency for the long term can decrease the tax you owe on gains. This strategy requires patience and some tolerance for market fluctuations.</p><h3>5. Regularly review and plan your crypto portfolio</h3><p>Effective tax planning shouldn’t happen once a year. Instead, it should be an ongoing process. Regular reviews of your crypto portfolio can help you make informed decisions throughout the entire year. Not only does this prepare you for tax time, but you’ll also align closely with best investment practices.</p><h2><strong>Accurate reporting to sort out your tax return</strong></h2><h3>6. Lodging your tax return</h3><p>When it's time to lodge your tax return, accuracy is key. Your tax software will help you to generate a Crypto Tax Report containing all of your tax outcomes. This detailed and precise documentation is invaluable and can be provided to your tax agent, or you can use it yourself to self-lodge your own tax return.</p><h3>7. Stay informed on regulatory changes</h3><p>The landscape of cryptocurrency taxation is ever-evolving. Staying updated with the latest ATO guidelines and regulatory changes is crucial and is a responsibility that you need to take seriously. Using software that is always updated to reflect the latest regulations provides you with peace of mind and an assurance of compliance.</p><h2><strong>Tax wrap-up</strong></h2><p>As the Australian crypto landscape continues to evolve, so does the intricacy of crypto taxation. But with the right tools and approach, declaring your crypto taxes doesn't have to be daunting. By leveraging the power of crypto tax software, you can embrace the new financial year with open arms and a clean tax slate, knowing that you’re well-prepared to meet your obligations without the hassle.</p><h2><strong>About Syla</strong></h2><p>Syla is an Australian crypto tax software and an official tax partner for Coinstash. Created by a team of tax professionals, you can get your ATO crypto tax report which is optimised to save you tax.</p><ul><li>Best value - affordable plans supporting up to 100,000 transactions.</li><li>Maximise your tax savings - using Syla’s proprietary LTFO method.</li><li>Private wealth - support for company, trust and SMSF accounts.</li></ul><h2>Special offer</h2><p>Use the code STASH5 at checkout to get your first year of Syla’s Budget Plan for only $5. Valid until 31 July 2024.</p><p>Use the code STASH50 at checkout to get 50% off your first year on any Syla plan. Valid until 31 October 2024.</p><p>For more detailed guidance on managing your crypto taxes, visit<a href="https://syla.com.au/" rel="noopener noreferrer" target="_blank"> <u>Syla's official website</u></a>.</p><p><br></p>

<p><strong style="font-size: 10px;">Disclaimer</strong><span style="font-size: 10px;">: This article and its contents are intended for informational purposes only, and do not constitute financial advice from TWMT Pty Ltd, trading as Coinstash AU ("Coinstash"). Coinstash is not a licensed financial advisor and does not provide financial advice. You should consider seeking financial, legal, tax or other professional advice to check how the information relates to your unique circumstances. Coinstash shall not be held responsible or liable for any losses, whether due to negligence or otherwise, stemming from the use of, or reliance upon, the information provided directly or indirectly in this article.</span> </p>

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