0x cryptocurrency guide advises where to buy and how to buy 0x. This guide also contains the markets, value, trading, investing, buying, selling, transactions, blockchain, mining, technology, advantages, risks, history, legislation, regulation, security, payment, networks and many other interesting facts about 0x as well its status in the world of cryptocurrencies.
0x, Tuesday, 2018-08-14
- 1 What Is 0x?
- 2 Beginner's Guide to 0x
- 3 Where and How to Buy 0x?
- 4 0x Markets
- 5 Where to Spend or Use 0x?
- 6 How Does 0x Work?
- 7 0x Regulation
- 8 Is 0x Secure?
- 9 History of 0x
- 10 0x Videos and Tutorials
- 11 See Also
What Is 0x?
0x (abbreviated as ZRX, "zero-exchange") is an open and permissionless protocol designed to facilitate trading of ERC20 tokens on the Ethereum protocol. It was created to act as an open standard and primary building block to help drive interoperability of decentralized applications (DApps) that factor exchange functionality. The platform was designed to help address the problem of centralized cryptocurrency trading.
The primary goal of cryptocurrencies has been, and still remains, to help users operate on a peer2peer basis. However, has this objective been met? Though this is a question subject to debate based on how one is looking at it, the truth is that the current exchanges are chocking it. That is true. Most of the current exchanges take the form of traditional forex markets.
For example, if you want to trade a specific token such as BTC or Ether in a cryptocurrency exchange such as Bittrex or Poloniex, the first step is creating an account and verifying it with personal info such as date of birth and telephone number. The centralized exchanges have, therefore, become the perfect grip for third parties to follow back and even unmask users. But that is not all.
The centralized exchanges have also become the soft underbellies of the cryptocurrency industry for the attackers. Think of every big hack in the industry today and the chances are that it happened at the exchanges. For example, Mt. Gox hack in 2011 almost brought Bitcoin to its knees when it was still at infancy. Other major hacks of centralized exchanges include Bitfinex, CoinCheck and YouBit that was hacked and forced into bankruptcy.
0x targets to solve the problem of centralized exchanges by decentralizing them. This means that traders will be able to trade their tokens without relying on centralized third parties. The designers of 0x believe that there will be thousands of ERC20 tokens in the coming years and, therefore, targets to make it easy for any person to cooperate a decentralized exchange. To help run the project, the 0x protocol runs a token referred as ZRX.
Beginner's Guide to 0x
Are you planning to join a cryptocurrency network? It is important to take some time to review the projects in the market and pick the one that promises highest ROI (Return on Investment). 0x is an interesting project that targets decentralizing the cryptocurrency trading platforms. The founders, Will Warren and Amir Bandeali, argued that most centralized organizations involve trusting a central authority with all the assets and risking attacks. This was the reason that most of the biggest attacks in the history of blockchain technology were done via the exchanges.
The 0x project was so interesting and potential that it attracted some of the top cryptographic solution personalities including Fred Ehrsam, co-founder of Coinbase and Olaf Carlson-Wee, founder of Polychain Capital. Even with this high potential, it is important that you carry a comprehensive review of the network and make your own decision. This is why this guide was created.
The guide is a comprehensive review of 0x platform to establish what it is, how it works and associated regulations. It also explores the value of 0x, security, history, and what happens when the coins get lost. No matter the questions or doubts you have about 0x, the answers are all in the guide. Welcome to learn and discover more about this high potential project.
Where and How to Buy 0x?
When ZRX went up for sale in August 2017 during the ICO, the value of the tokens was only $0.11. This price grew sharply by over 1500% by 10th of May 2018. Call it meteoritic speed. The token has demonstrated huge potential because of the nature of the project and huge expectation in the Ethereum community. Therefore, would you like to buy the ZRX tokens? Here is where and how to buy them.
To buy the ZRX tokens, the first step should be selecting an appropriate wallet. This is the location that will hold the tokens after the purchase is over. Once you have an appropriate wallet, there are two primary places you can buy ZRX from.
- Buy from cryptocurrency exchanges: These are the primary markets for crypto assets. They operate like the standard forex markets but trade in crypto assets instead of fiat currencies. Note that most of the exchanges will require you to also verify the accounts with personal information such as phone number and proof-of-location. Some of the top cryptocurrency exchanges include Binance, Bittrex, HitBTC and UPbit.
- Purchase from those who already have the tokens: For those who do not want to follow the lengthy process of trading at the exchanges, it is now possible to buy directly from those who already have them. Because of the fast-rising demand for cryptocurrencies, the crypto communities are now organizing themselves into clubs. Once you join a club, simply look for a person who has and targets to sell ZRX. Though the process is simpler and direct, it is important to also appreciate that getting a person who wants to sell the number of ZRX you want to buy might not be as easy.
Are you planning to join 0x or other cryptocurrency networks? The first thing to acquire should be a cryptocurrency wallet. A wallet, like its name suggests, is the location to hold your crypto coins. However, you need to appreciate that digital tokens, unlike the conventional coins, are not physical. In reality, they cannot exist outside their native networks. Even though the wallets are designed, and defined as the holding points for the ZRX tokens, they store something completely different.
0x wallets store three types of codes that help to identify your ZRX in the 0x network. First, they generate and store the private keys. These are special codes that help to point at your tokens in the 0x system and also call them to live when you want to make transactions such as trading, making payment, or checking the balance. Like the name suggests, the keys are private and should never be shared with third parties.
The second code generated by an 0x wallet is the public keys. This code is like an address pointing to your wallet. This means that when you have people who want to pay you in ZRX, you provide them with the public keys.
The last code generated by the 0x wallet is the seed. This is the code that helps to regenerate the private keys in the case of a loss. In some cases, the wallets first generate the seed which must be used to further generate the private keys. The private keys and the seed are very important to your operations in the 0x system. It is advisable to ensure you store them safely and away from the main computer. Some of the top 0x wallets you should consider include;
Where to Buy 0x with Credit Card?
Credit cards are some of the most trusted methods of payment in the market today. Because they are accepted in both conventional and online marketplaces without carrying cash, no one wants to live without them. Now, it is also possible to buy crypto assets such as ZRX with a credit card in exchanges such as Liqui.
Where to Buy 0x with PayPal?
There is no method that can be used to buy ZRX with PayPal. For a long time, PayPal considered crypto networks as direct competitors and, therefore, discouraged payment to their networks. Though it has indicated that the policy will be changed to make payment to crypto networks possible, it is not until such a time that such direct purchases will be possible. At the moment, the only ways to buy with PayPal is depositing the money in a bank account or credit card and buy via an exchange such as Liqui.
How to Buy 0x with Wire Transfer?
Banks are some of the most trusted institutions. They are professional in their work and never fail to carry due diligence on their work. Because of this, they are used to process salaries, investment, and even financial related advice. Now, you can also use banks’ wire transfers to buy 0x. Here is the procedure.
- Start by acquiring an appropriate 0x wallet. This is the location that will hold the tokens after the purchase process is completed.
- Select a crypto exchange that accepts payment with wire transfer and that lists ZRX. Then, open a trading account by following the procedure provided by the platform.
- Verify the trading account with the required personal details. Some exchanges will require you to verify the accounts using a phone number, proof of location, or date of birth. This information can vary depending on the policy of the respective trading platform.
- Select the number of ZRX you want and tick pay with a wire transfer. The transaction will be processed in about 2-3 days depending on the country, the bank, and the respective exchange.
NOTE: Because most of the exchanges that trade ZRX are crypto-to-crypto platforms, people with cash in their banks might need to start from a different platform such as CEX.io or LocalBitcoins.com to acquire alternative cryptocurrencies such as Ether. Then, exchange Ether for ZRX at top exchanges such as Binance and HitBTC.
Where to Sell and Trade 0x?
Have you been in the 0x network and now own some ZRX? You might be wondering what to do with them to optimize ROI. While some opt to hold the tokens and wait for the value to grow, a better way to earn more is trading in the exchanges. These are selling and trading platforms designed to help people exchange their digital assets such as 0x.
Before listing the top selling and trading platforms, it is important to appreciate that they have become the easiest targets for hackers. Every time that you hear thousands or millions of dollars worth of altcoins or Bitcoins have been lost, the chances are that they were siphoned from an exchange. The latest examples of such hacking attacks include the Japanese Coincheck and South Korean YouBit. Therefore, how do you select the right cryptocurrency exchange? Here are some useful tips to consider.
- Start by evaluating the exchange’s commitment to clients' security. Here, you should consider checking for features such as 2-factor authentication and use of cold storages.
- The selected trading platform should also have low transaction fees. If the fee is very high, the chances are that the bulk of your profit will be swallowed.
- Look for the platform that has been in the market for some time and won praise from the crypto community.
- To make resolution of issues that might arise in the platform easy, go for the platform with good customer support.
- To have more trading and profitable options, only select the cryptocurrency exchange that lists many crypto assets.
- The ideal platform should allow users to move their assets such as ZRX to their wallets immediately after purchasing them.
The primary focus when trading cryptocurrencies should be security and trading opportunities. However, you should also look at the policies of the exchange such as commitment to scrutiny using new assets to avoid listing risky ones. Some of the great platforms to consider include OKEx, Ethfinex, Huobi, and UPbit.
How Much Are the Transaction Fees of 0x?
Though 0x does not outline the transaction fee on the platform, it is expected to be lower because there are no centralized and profit seeking entities. Even if the 0x protocol indicates that it will be free, the relays are required to take a fee. This will be their motivation to run the transactions in line with the smart contracts.
Crypto markets are growing at a very fast rate to keep pace with the swelling number of cryptocurrencies in the market today. Here is a closer look at the markets and how they operate.
This is one of the youngest cryptocurrency markets that have gained a lot of popularity recently. It was created in 2017 by Changpeng Zhao who wanted to help simplify trading and make it more secure. To achieve this, the founder also released the native token referred to as BNB (Binance Coin).
The transaction charges at Binance are only 0.1%. This makes it one of the cheapest markets in the industry today. You can also cut the cost by 50% to 0.05% by paying the transaction charges using BNB. This means that you can keep the bulk of the profits for trading ZRX at the exchange.
Like Binance, HitBTC is another leading exchange that has a very large community. Its biggest selling point is the large number of listed cryptocurrencies. This means that you will always have a profitable asset to pair with ZRX. The platform also features a very small transaction fee of 0.1%.
The biggest challenges of using HitBTC is that it has a hacking history. Even though the HitBTC has already addressed the issues that resulted in hacking, many people prefer to run away when they hear about hacking. Besides, withdrawals at the platform take very long before getting effected.
This is one of the top platforms started in 2014. The exchange lists very many cryptocurrencies to ensure that all traders can have a profitable option to jump to for higher ROI. This coupled with a low transaction fee of 0.25% means that most of the profit will go into your pocket. However, many people have indicated they would want to see the transaction fee lowered further to less than 0.1%.
One unique selling point of Poloniex is its focus on security. The exchange moves 70% of all the traders’ assets to cold storage. This implies that only 30% of the total assets are available for trading at any one point. The remaining 70% of the resources are only made available for trading on demand.
The main challenge of using Poloniex is that it operates as a crypto-to-crypto platform. This implies that those with cash have to start from other platforms such as Coinbase. In addition, the platform also has a daily withdrawal limit of $2000/day. This is a great roadblock for people who target to trade large volumes.
Bittrex is a leading US-based crypto markets that was started in 2014. Like Binance of China, Bittrex was created to help make trading cryptocurrencies easy and direct. Because Bittrex was started at a time when a lot of hackings and scams on the exchanges such as Mt. Gox and the Silk Scandal had just taken place. Therefore, a lot of efforts were directed at making the network secure.
Bittrex lists more than 250 cryptocurrencies that users can pair with ZRX. It also has a quite low transaction fee of 0.25% for every trading volume. This means that traders can keep the bulk of the profits as opposed to being taken by the platform.
One unique thing about Bittrex is its focus on listing secure assets. For example, it strictly follows the local trading laws. Besides, it evaluates all assets before listing them for trading to avoid putting traders at risk. This is the reason why the exchange failed to list Bitcoin Diamond when it was released even as other exchanges such as KuCoin jumped to list it.
Value of 0x
0x has continued to perform remarkably well on the exchanges. In January 2018 the market capitalization of 0x hit $1 billion for the first time with the price of around $2.4 USD. After January the value started to decrease with a similar path as many other cryptocurrencies. In the end of March the value started to increase again, and in early May the market cap and price had grown nearly the same as in January's good days. However, in the next two weeks after 11th of May 2018, the value have had a downhill again, but showing a promising movement once again on 24th of May.
Is It Profitable to Invest in 0x?
Most people planning to join 0x network always have one question running through their minds; is this project profitable? The cryptocurrency community and finance experts agree that 0x is indeed a highly profitable project. For example, a person who invested about $1000 when the tokens were released during the ICO (Initial Coin Offering) in August 2017 enjoyed around $15,000 profit by early May in 2018. If this trend is maintained, investors are likely to enjoy even higher profitability. If you sold your 0x coins on January's highest peak, you would have earned more than 2000% profit since ICO.
The profitability demonstrated by 0x is also supported by the fast-growing interest in the network. For example, many corporate companies and other cryptocurrencies have already partnered with 0x to be part of the expected growth. This anticipation and a progressively swelling community will continue growing the value of 0x and ROI to ZRX investors.
To continue operating profitably, 0x must ensure that the development team remains focused on achieving the primary goal. It must also put a lot of efforts to keep the network secure and its value growing progressively.
Where to Spend or Use 0x?
One of the top methods of gauging the acceptability of a crypto network is checking the number of traders who accept it for payment. Though ZRX has been in the market only for a relatively short time, it lags behind when it comes to acceptance in the mainstream markets. Today, no store or organization has come out to declare it accepts payment in ZRX. To spend ZRX, therefore, you will need to convert to the accepted crypto coin or fiat currency.
Can 0x Grow to Become a Major Payment Network?
Yes, 0x can grow into a major payment network. Every cryptocurrency out there is in the race to becoming a major payment network. 0x stands a better chance of becoming a major payment network because it promises to lower the transaction costs. By decentralizing the exchanges, it means that the profit-seeking party is kept out of the chain and the cost associated charges eliminated. Indeed, the only charges on the 0x system is the transaction charges for relayers.
The 0x network is also likely to easily evolve into a major payment network because it is more secure. By operating as a decentralized system, it means that there is no single point of failure. Because there is no single entity that holds the clients' assets, the network is likely to become less attractive to attackers.
The 0x network is considered high potential venture and, therefore, it is attracting a lot of corporate organizations. Some top corporate companies that have already entered into a partnership with 0x include Augur and Melonport.
How Does 0x Work?
0x is an open protocol for decentralized exchanges running on the Ethereum blockchain. It utilizes smart contracts to help any person run decentralized exchange.
First, it is important to appreciate that decentralized exchanges have a lot of shortcomings including being expensive, illiquid, and slow. 0x seeks to address such shortcomings in its system through use of the blockchain technology. This implies that they operate like standard cryptocurrencies that rely on block times. Every order book on the protocol is taken through blockchain for verification. This means it is held to block times.
The 0x protocol allows any Ethereum token to be traded and any person to be able to run a DEX (decentralized exchange). These parties that build on top of the 0x protocol are referred as Relayers. They host off blockchain order books and are allowed to charge a fee.
The 0x protocol further employs 0x OTC (Over The Counter) that allows peer2peer exchange of ERC20 tokens. When using the 0x OTC, a relayer will not be necessary. Indeed, the 0x OTC is live on the Ethereum test network. Therefore, any person can broadcast orders by sending a link to a counter party. This means that you need to have specific targets and relaying orders to them via a medium such as email or social medias. Take a look at the example of the order page in the image below.
The 0x protocol also uses its native token, ZRX, for paying fees to relayers. Note that though ZRX is used like any other cryptocurrency, its primary role is decentralized governance on the 0x protocol. This implies that when you get some ZRX, you have a say on how the 0x protocol will be improved over time.
The token is being seen as a force that will be used to take the 0x system to another level as more products get attached to it. It appears that 0x will, inevitably, expand to a bigger network to cater for the expected growth.
Does 0x Use Blockchain Technology?
Yes, 0x employs blockchain technology. The project employs smart contracts that are powered by the Ethereum blockchain. The blockchain technology is applied to help cure the issues that have been limiting other decentralized applications. When users initiate transactions, they are taken by relayers and added into order books that have to be verified on the network.
The 0x network is also banking on the blockchain technology to hinge its need for growth in the coming years. Though its native token, ZRX, all holders are part of its governance system. This implies that they hold the decision that will define its potential for success. The 0x community holds the view that its network will in the coming years have a lot of products that could bring the need to operate its own blockchain. This is where the token holders will play a great part.
There is no mining in the 0x platform. When the project was announced, all the tokens, a total of one billion tokens were released into the market. This means that there is no more left for miners. 50% of these tokens were sold during the ICO, 15% reserved to incentivize future team members, 15% set aside for external development fund, 10% went to the founding team, and early backers took 10%.
What Are the Advantages of 0x?
For about 10 years, from 2009 to 2018, the cryptocurrency community has had to grapple with the problem of decentralized exchanges because they pose huge risks of compromising the anonymity sought in crypto networks. By promising to advance the same notion of decentralization in the exchanges, 0x project is being referred by many people as the best answer. Here are the main benefits to expect after joining the network.
- By operating as a decentralized exchange, 0x will help to address the problem of vulnerability and hacking. This is possible because there will be no single administrator that hackers can target to gain access to the entire exchange and siphon traders’ assets.
- The 0x platform allows users to have absolute control over their ZRX and other ERC20 tokens. This is made possible by the fact that users are not required to send all the tradable tokens to a centralized account owned by the trading platform.
- The native token in the 0x, ZEX network provides users with an opportunity to invest and earn good returns. The potential for this growth has already been demonstrated by the meteoritic growth of the cryptocurrency between launching and the close of the first quarter of 2018.
- A great way to send funds across the globe cheaply and less anonymously. As a peer2peer network, users are able to send value across the network without involving centralized authorities. By eliminating the centralized exchange, it will be possible to down the cost even down. Indeed, the 0x protocol is free.
- 0x allows users to invest without worrying about third-party seizures. Unlike banks that expose your investment easily and make freezing through court orders even easier, investing in ZRX is anonymous and helps to keep your investment away from all third-party seizures.
- By presenting a workable solution to lower the risk of getting attacked, a lot of corporates are getting attracted to the 0x network. This is helping to raise the value of the network and raising the anticipation from users to a whole new level.
- The cryptocurrency community and experts in the community appear in agreement that the potential for 0x growth and success is very high. The growing community is likely to keep the demand for the native coins, ZRX, going up and delivering higher ROI.
What Are the Risks of 0x?
While the positives associated with 0x are indeed many, it is very important for investors to also appreciate that it comes with its own share of demerits. Here are some of the risks that you should know to make the right judgment.
- The looming regulations have threatened to tear apart cryptocurrency networks and associated projects. Because many administrations feel threatened by cryptocurrencies, they have threatened to pass harsh regulations that could ultimately slow down 0x and other networks or even fade them completely.
- The risk of getting attacked. Cryptocurrencies and their networks have become the primary targets for hackers. Though the 0x development team has demonstrated its dedication to continuously improve the system's security, no network can be 100% secure.
- The danger of losing your native tokens. Once you join the network, the process of running transactions such as sending value requires use of private keys. This implies that the risk of losing ZRX by sending to the wrong address always looms.
- The project is still young and it is impossible to draw conclusions. While the 0x project has demonstrated its huge potential, it is still young for people to conclude about its stability. It will take about five to ten years for the stability of 0x and its features to be ascertained.
- The threat of new cryptocurrencies offering the same type of features. While the idea of a decentralized exchange is indeed noble, the idea is attracting a lot of interest from the developers. As more projects steal the idea and present even better projects in the coming days, there is a high risk of 0x losing appeal in the market.
What Happens if 0x Gets Lost?
If you have invested in the 0x project through the purchase of the native tokens, it is important to appreciate that the danger of loss always looms. You could lose the coins through sending to the wrong address, damage to the wallet and even a hack. However, have you ever wondered what happens to the coins after getting lost?
If you lose the ZRX through damage to the 0x wallet or forgetting the private keys, it means that the coins are still in the 0x network but in a dormant state. In reality, the coins are not lost. All that is required is the regeneration of the right private keys and wallet to regain the lost coins.
For people who lose their ZRX through hacking or sending to the wrong address, the transactions are considered complete. Therefore, they belong to another person. The reality of such a loss is that the tokens are still in the network but cannot be brought back. Remember that the networks are decentralized and, therefore, there is nowhere to launch complain.
Since the entry of cryptocurrencies into the finance industry, no administration has been sitting pretty. Many governments hold the view that the cryptocurrencies are out to disrupt their operations and even outs them. But this approach appears to fade away in some countries while others feel extremely threatened. Here are some of the reasons making governments feel threatened by the rise of cryptocurrencies.
Because cryptocurrencies are decentralized and peer2peer networks, the primary goal is keeping off centralized financial and related services such as banks. This implies that such organizations such as banks and likely to shrink and even close down. Remember that closing an institution such as a bank means massive layoffs and loss of revenue in taxes.
Most administrations hold the view that the anonymity espoused in cryptocurrencies and related networks such as 0x are likely to become brooding points for criminals. Because the anonymity promises complete cover from third parties, Ponzi schemes and illegal activities are likely to increase.
After joining cryptocurrency networks, many people believe that they can operate without paying taxes. They hold the view that they can keep all the proceeds from trading ZRX and other cryptos without remitting taxes. The governments feel that this trend will ultimately deny them the funds they need so much for development and other official expenditure.
The main reason that has made many governments engage a faster gear in crafting legal frameworks is capital outflows. Because investing in crypto networks such as 0x and others is considered more profitable, more people are now going cryptos and moving away from conventional assets such as bonds. There is fear that governments could soon lose control of capital flows and even inflation.
Despite these concerns, it is interesting to note that no country had passed a legal framework by the start of the second quarter of 2018. It is now emerging that passing crypto regulations is no walk in the park. In fact, many countries are stuck without a clear idea of where to start the process of crypto legislation. Here are some of the reasons making it difficult to craft crypto legal framework.
- The blockchain technology is evolving rather fast that most administrations can comprehend. Indeed, most of them are forced to play catch-up.
- Cryptocurrency networks are not owned by any single party. Because they belong to users spread in the network across the globe, targeting them has become a problem. How do you regulate a network with tentacles spreading all over the globe?
- Cryptocurrencies have demonstrated the capacity to address some of the big problems that have refused to go away for years. For example, Big Data.
- As cryptocurrencies’ popularity continues growing, governments are finding themselves in a fix because they do not want to appear to go against the popular will of the people.
Though it is sure that the cryptocurrency regulations in most countries have taken very long, the truth is that they will finally dawn. Most administrations are committed to going to any length to craft some regulations to either limit or guide cryptocurrency frameworks. Take a look at the next section that explores the legal status of 0x in different jurisdictions.
Is 0x Legal?
Yes, 0x is legal in most jurisdictions. Though many countries do not have clear legal frameworks, some of them have made some efforts and are at different stages of installing legal frameworks. However, some have opted to use direct orders to limit the crypto space.
0x is legal in Russia. By the last quarter of 2017, Russia had indicated that it was not interested in regulating cryptocurrencies. However, this changed by the close of 2017 when the administration realized that the investment landscape was changing. For example, the majority of the people in cryptocurrencies in Russia prefer investing in crypto assets as opposed to conventional assets such as real estates and bonds.
Early in 2018, the finance ministry indicated that there was a loophole that made it impossible to tell whether traders who accepted payment in cryptocurrencies were committing offenses. Together with the central bank, the finance ministry crafted the Digital Financial Assets draft bill that explores most aspects of cryptocurrencies.
The draft bill defines the digital assets to mean both tokens and cryptocurrencies. The tokens under the draft bill are assets issued by legal organizations to help them raise funds. This means that an anonymous and non-registered organization cannot issue tokens in Russia.
The other type of digital asset is a cryptocurrency. These are digital coins that are generated through mining or distributed by a legal entity. Note that according to the draft bill, the digital assets are considered properties. This implies that the administration is putting a lot of weight on these assets.
Miners, according to the draft bill, are considered to be involved in generating commodities referred as cryptocurrencies. Therefore, they are required to be registered entities. If the draft becomes a law, it implies that miners will be needed to register companies. It will be illegal to mine anonymously.
In addition to defining the crypto assets and outlining the process of mining, the draft bill further lays the ground for trading. It sets out very strict measures for trading platforms operating in the country. It insists on enhanced security and insurance of all the assets the same way that it happens with standard forex markets. This is meant to protect the traders using these exchanges.
0x is legal in Canada. The country is considered pro-cryptocurrencies after many years of supporting and using fintech to become a global financial hub. However, the administration insists that cryptocurrency is not a legal tender. The Canadian administration was the first to craft a digital assets bill referred to as Bill C31 in 2014. However, the law appears to be out of sync with the fast-evolving cryptocurrencies.
The central bank indicated that it is important to rethink cryptocurrencies and address the emerging issues especially the threat of tax evasion. The government has appreciated that though taking a localized approach is important, it is a global focus that will be more effective. It has, therefore, joined the North American Administrators Association (NASAA) in taking a global focus on addressing issues arising from cryptocurrencies.
While other countries are seeing threats from cryptocurrencies, it is interesting that Switzerland is seeing it differently. The country has indicated that blockchain technologies are ideas whose time has come and cannot be simply wished away. The economics minister reported that they were putting every effort in ensuring that the country becomes a crypto nation.
The Swiss Federal Council formed an ICO Working Group to help explore all possible methods of promoting ICOs development. The team will also provide recommendations for crafting supportive legal frameworks for faster growth of the crypto niche. Even if other jurisdictions pass very harsh regulations, there is no doubt that Switzerland will always be an oasis for them.
Japan is one jurisdiction considered friendly to 0x and other cryptocurrencies. The country has been categorical that there is nothing that limits traders or individuals from using cryptocurrencies. This is the reason that Japan’s cryptocurrency population is very high. However, the country insists that cryptocurrencies are not legal tenders.
Japan only requires that cryptocurrency exchanges are registered and strictly follow the trading rules. Following the hacking of Coincheck, a Japanese based trading platform, the Japanese administration has been cracking the whip to those operating without registration. It is clear that Japanese administration is not focusing on creating a new legal framework for crypto networks.
Venezuela is one country that has banned the use of cryptocurrencies. This means that 0x is illegal in the jurisdiction. However, it appears that the country's focus on cryptocurrencies is not to simply promote one blockchain. Rather, it is a way of circumventing the many sanctions put on it by the international community.
Because of the oppressive regime that runs the country under Nicolas Maduro, the idea to use the blockchain was aimed at helping the country trade anonymously. This means that it can sell its petroleum to other countries around the globe without worrying of sanctions.
It is worth noting that though Venezuela targeted circumventing international sanctions, other countries are now looking at it as a case study. For example, Russia, a close ally of Venezuela, is studying the petrol blockchain with a view of implementing such networks back home.
0x and Taxes
The topic of 0x and taxes or other cryptocurrencies and taxes is very complex. Indeed, it is the primary force driving most administrations to craft regulations or even use direct orders to halt cryptocurrency growth. Many people feel that because cryptocurrency networks are anonymous, they have provided a route for tax-free lifestyle. In the United States, Credit Karma Tax reported that only a handful of the crypto population reports their transactions when filing returns. But it is not just in the United States.
In Russia, the government has crafted a very comprehensive draft digital assets bill that creates structures for trading to ensure that no 0x trader will ever skip taxes. In the EU, the anonymity provided by crypto networks is seen as the biggest obstacle to smooth tax payment. Now, experts have weighed into the debate and have a different view from that of the 0x and other cryptocurrency communities.
Because of the fast technology evolution, the experts hold the view that their identities will be unmasked in the future. For example, when Bitcoin was created, people thought it was completely anonymous. However, newer technologies have now made it possible to know the details of people trading in Bitcoin. A similar situation could be replicated in with other cryptocurrencies.
The primary goal of decentralized operations is ensuring you can operate in optimal privacy and not evading paying taxes. However, it is still possible to enjoy all the benefits that come with joining the 0x network without breaking ant tax related laws. Here are some tips to guide you.
- Treat revenue from cryptocurrency networks as taxable income.
- Capture important details such as trading volume and value of corresponding fiat currency. This will help with clarification if the need arises.
- For traders who accept payment in ZRX, it is important to prepare the books of accounts appropriately. Ensure that the balance sheet captures the details appropriately.
- If you feel that more need to be done to make your enterprise more compliant, ensure to work closely with tax or financial experts.
Does 0x Have a Consumer Protection?
0x does not have consumer protection. As a decentralized and peer2peer project, 0x is a project and platform owned by users spread in the entire network. While this is the primary goal of running decentralized exchanges, it also comes with its share of disadvantages.
The moment you join the 0x network, it implies you are on your own. This means that you do not have anywhere to make a complaint in case an issue arises in the network. For example, if you send ZRX to the wrong address, there is no central point to lodge it. Things are even worse because cryptocurrencies are not regulated and, therefore, you cannot seek redress from a court law. To be sure of operating safely in the 0x network, here are some useful tips to follow.
- Never share the private keys with third parties.
- Try dedicating a single computer for all 0x related tasks.
- Pick the trading exchanges with a lot of care.
- Always move ZRX to cold storage when not trading them.
- Keep the 0x network updated all the time.
- Avoid visiting risky sites that expose and make you an easy target.
Illegal Activities with 0x
When cryptocurrencies entered the market in 2009 after the launch of Bitcoin, criminals were sure that they had finally found a new system. They prefer cryptocurrencies because the networks are anonymous and help them to operate without worrying about third-party seizures. However, no illegal activities had been reported with 0x by the close of the first quarter of 2018.
Is 0x Secure?
Since inception, the 0x development team has put a lot of effort into ensuring that the platform is secure and reliable. Their efforts are bearing fruits because no hacking attempt has been successful since inception. To make the network secure, the development team employs the following considerations;
- Employing smart contracts.
- 0x operates as an additional layer on the Ethereum network.
- There is no mining in the network. This means that the ZRX tokens can be distributed equally to avoid the threat of 51% attack.
Is 0x Anonymous?
Most people targeting to buy ZRX want to know that they are safe can trade anonymously. The project employs blockchain technology to ensure that all traders in the network operate in a decentralized manner. Other technologies used to enhance anonymity are smart contracts and advanced encryption.
Has 0x Ever Been Hacked?
0x system has never been hacked. The growing popularity of cryptocurrencies has become a great attraction to hackers. Hackers can target the native assets at the network level, the wallet level or in the market. The architecture of 0x especially the application of smart contracts has been very instrumental in helping to keep the network free from hackers. Not that this does not imply that the network is not targeted. The development team has indicated that they block very many hacking attempts on the network.
How Can I Restore 0x?
One of the most distressful things that can happen to crypto investors is waking up and finding that their crypto assets have been lost. However, this has become the order of the day, especially at the exchanges. Many people report that they have lost their ZRX or other cryptocurrencies after getting hacked at the network level of markets. However, others still lose their crypto coins by sending to the wrong address. Well, all might not be lost because there are some cases where you can restore the lost coins.
- ZRX lost through damage to the 0x wallet can be restored by reinstalling the backup wallet. You can also use a compatible ERC20 wallet and reconcile the private keys to restore the lost coins.
- For people who lose their ZRX by forgetting the private keys, restoring the coins can only be possible through regeneration of the right keys. This can be done using the seed phrase that was generated by the 0x wallet the first time you used it.
- If you lost ZRX through sending to the wrong address or hacking, there is no method that can be used to restore them.
Why Do People Trust 0x?
The fast-rising number of cryptocurrencies has shifted the competition battle from a simple assessment of the network with better structures to trust. Many people are now taking their time to establish whether the cryptocurrency of choice can be trusted or not. 0x is one network that has won a lot of trust from the cryptocurrency community because of the following things.
- The price of the 0x native token, ZRX has been performing very well in the market. Many people hold the view that it could be the next big mover in the coming years.
- The project has won a lot of support and even attracted partnerships with major projects such as Augur and Melonport. With such partnerships, more people have been flocking the project with the aim of getting a piece of it.
- The project is led by a highly committed team that has a long-term objective. Both Will Warren, Amir Bandeali and the entire leading team have a huge background in cryptography and finance niches. For example, they have promised to keep improving the network to be able to hold more assets as they get introduced to the markets.
- The project does not simply target one cryptocurrency. Unlike other networks such as Bitcoin or Bitcoin Cash, 0x is a project that is designed to act as a platform for all ERC20 cryptocurrencies. This means more people will want to be associated with it; a move that will keep growing its value.
- The project presents a workable solution for addressing centralization of crypto trading. As one of the pioneers, many people believe that they have an opportunity to grow as people rush to trade in total anonymity.
History of 0x
The idea of creating a platform for running a decentralized exchange dawned on the founders, Will Warren and Amir Bandeali, back in 2016. It had become apparent that the standard centralized cryptocurrencies were becoming a serious threat to the success of the original goal of operating in a trustless manner.
- They started working on the project and decided to use the Ethereum blockchain because it provided a perfect network for ERC20 tokens. They held the view that in the coming days, ERC20 tokens would grow into thousands as the token world continues to grow.
- In January of 2017, they released the white paper that explained how the decentralized exchange would work. This was followed by an ICO that was run in August 2017. The ICO sold 50% of the one billion ZRX tokens.
- In March of 2017, 0x closed the seed funding that was being done by Polychain Capital. In two months later, 0x won the Consensus 2017 Stamp Competition.
- The price of ZRX hit the highest point of $2.39 in January of 2018, before taking a downward trend until the end of March. The price took an upward trend at the start of the second quarter of 2018.
Who Created 0x?
0x project was created by Will Warren and Amir Bandeali in October 2016. They wanted to create a world where everything could be represented in a token. This means that anything including fiat currencies, digital games, gold, and even stocks. Tokenization will ultimately bring about numerous tokens that will require a cohesive trading platform.
Other important personalities who helped in the early development and funding included Polychain Capital, Pantera Capital, Jen Advisors, Blockchain Capital, and Fintech Blockchain Group. This makes the project to boast of great advisors and development members including;
- Fred Ehrsam, co-founder of Coinbase.
- Olaf Carlson-Wee, founder of Polychain Capital.
- Joey Krug, founder of Augur.
- Linda Xie, product manager at Coinbase.
0x Videos and Tutorials
What Is The 0x Protocol?
0x - A Better Way to Trade ERC20 Tokens
0x Protocol Explained
0x Dominating Decentralized Exchanges?
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