OmiseGO cryptocurrency guide advises where to buy and how to buy OmiseGO. 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 OmiseGO as well its status in the world of cryptocurrencies.
- 1 What Is OmiseGO?
- 2 Beginner's Guide to OmiseGO
- 3 Where and How to Buy OmiseGO?
- 4 OmiseGO Markets
- 5 Where to Spend or Use OmiseGO?
- 6 How Does OmiseGO Work?
- 7 OmiseGO Regulation
- 8 Is OmiseGO Secure?
- 9 History of OmiseGO
- 10 OmiseGO Videos and Tutorials
- 11 See Also
What Is OmiseGO?
OmiseGO is one of the latest cryptocurrencies to enter the crypto industry. It is an Ethereum based financial platform that provides a decentralized exchange and a payment platform (wallet). The OmiseGO network was designed to help provide a reliable option for real-time and peer-to-peer payments.
While other cryptocurrencies have been working towards perfecting their own networks, OmiseGO aims to operate agnostically across different service providers. This means that it will facilitate shift of value in both fiat and crypto assets. Besides, it aims at enhancing interoperability between payment services. This means that people using MasterCard will be able to send funds to other networks such as MasterCard once the OmiseGO white-label wallet is fully implemented.
As a cryptocurrency network, the main operations are hinged on the blockchain technology. This means that all transactions are person-to-person. This will help to eliminate centralized and profit-seeking organizations.
The network uses Proof-of-Stake algorithm at OmiseGO which requires all the transactions to be confirmed by nodes spread in the network before being added to the public ledger. This implies that users in the network are sure of enjoying numerous benefits such as low cost of transactions and faster payments.
Beginner's Guide to OmiseGO
Every time that a new cryptocurrency network enters the industry, the focus is helping to introduce new features. Between 2009 and 2018, more than 1200 cryptocurrencies entered the industry. One of these cryptos is OmiseGO.
OmiseGO has a unique architecture that is targeting to bring revolution into the crypto world. Instead of working to promote its native system alone, the OmiseGO team has focused on an agnostic model. This means that it is working on ensuring interoperability between various payment services. This model has excited the crypto community with some experts predicting it could become the next Bitcoin.
Now, should you invest in this new crypto? Is it the real deal today? You need to have all these questions answered. You need a comprehensive analysis that will help in making the best decision. This Guide is a comprehensive look at OmiseGO to help you get the right answers.
The guide answers key questions and looks at every concept of OmiseGO that you need to know. To highlight some of them, you can expect to get details about where to buy, how to buy, OmiseGO markets, regulations, profitability, and value. The guide also looks at the advantages of joining OmiseGO, the demerits, why people trust it, and the history.
Whether you are new to cryptocurrencies or has been with them for some time, this guide is the best companion to assist with making the right decision. Welcome to learn and discover more about OmiseGO.
Where and How to Buy OmiseGO?
The architecture of OmiseGO makes it very attractive in the crypto community. Most people hearing about it for the first time express their desire is to own OMG (the native tokens) so that they can also enjoy the expected high ROI (return on investment). However, where and how can one buy OmiseGO?
OmiseGO is a digital currency. This implies that its native asset only resides in its network. If you want to buy OmiseGO tokens, you need to follow these procedures.
- Start by acquiring an appropriate cryptocurrency wallet.
- Look for a good exchange that trades in OMG. Some great examples include Poloniex and Bittrex.
- Open a trading account at the selected exchange and navigate to the purchase crypto assets section. Then, select OmiseGO as the target asset.
- Depending on the cryptocurrency exchange of choice, you might be able to buy the coins with a wire transfer, credit card, or other cryptocurrencies.
- Because the OmiseGO coins you buy go to the exchange’s trading account, you will need to withdraw them into your wallet.
When you decide to join the cryptocurrency world, one must have thing is a cryptocurrency wallet. This is a digital location that will hold your OMG and facilitate further actions such as trading or holding. Here is a closer look at the OmiseGO wallets.
A closer look at the term cryptocurrency wallet reveals that its definition is a misnomer. Though it is accepted as a storage location, the wallet does not store the coins in reality. What the wallet stores are two sets of codes; the private keys and public keys. These are the codes that help to identify the coins you own in the OmiseGO network.
The private keys are the special codes that activate the coins you own in the network. This means that you must use the private keys to activate the coins before sending them on the network. Like the name suggests, the keys are private and should never be shared.
The public keys, unlike the private keys, are used to point at your wallet. If you have someone who wants to send some OMG to you, you only give him the public keys. The public keys is the code that nodes in the OmiseGO network use to confirm transactions.
The best OmiseGO wallets for you
1) Ledger Nano S (hardware wallet).
- Ledger Nano S has won the tag of the most secure wallet in the crypto world. It looks like a flash drive and has physical buttons that the user must press to complete transactions. This indicates that even hackers cannot break in because only the person with the hardware can complete transactions. The manufacturer of this hardware wallet, Ledger, indicates that users can even make transactions using a compromised computer without worrying of getting attacked.
- When you use the wallet for the first time, it generates the seed phrase. This is a 24 words phrase that should be kept securely to assist with recovery of the OMG in case of wallet damage.
2) MyEtherWallet (desktop wallet).
- This is a leading ERC20 cryptocurrency wallet that was originally created to support Ethereum. However, it has become a top option for cryptocurrencies that operate on the Ethereum network and use smart contracts. Unlike other types of wallets, MyEtherWallet provides users with absolute control of their private keys. This means that you need to carefully secure the private keys and the seed phrase away from the main computer. To remain more secure when using the wallet, it is important to ensure that it is always updated.
3) MetaMask (web-based wallet).
Where to Buy OmiseGO with Credit Card?
When people hear of the term cashless society, the main thing that rings in their minds is plastic money such as credit cards. However, these cards are a direct representation of cash in your bank. Because credit cards are accepted in both conventional stores and online market places, no one wants to stay without them. Now, they have also become a major tool for buying cryptocurrencies such as OmiseGO. Here are the main platforms where you can buy OmiseGO with credit cards.
Where to Buy OmiseGO with PayPal?
PayPal is a leading digital wallet that acts as a portable bank. You can access it anywhere on the globe to make transactions, check account balances, and clear payments. However, the cash in the PayPal account has to flow from hard notes in your bank before payment can be effected. Though PayPal is a leader in payments across the globe, it is yet to make inroads in the world of cryptocurrencies.
While OmiseGO targets bringing the payment services closer to facilitate cross-platform transactions, PayPal still look at the crypto networks as threats. This means that it does not allow payment into crypto networks or crypto related operations. If your cash is in PayPal, the next best alternative is offloading into the bank account of credit cards.
How to Buy OmiseGO with Wire Transfer?
One notable thing about the society is that no one wants to operate without a bank account. Even the people at the front line of advocating for a cashless society still have bank accounts that help them with facilitating salaries, provide advice on investment, and even access to credit. Now, it is possible to buy your preferred OMG coins using wire transfer. Here is the procedure.
- Start by getting an appropriate wallet.
- Select the best cryptocurrency exchange such as Changelly and CEX.io.
- Open a trading account at the exchanges and navigate to the purchase digital assets section.
- On the payment section, select pay with a wire transfer. This will require you to enter the details of the bank account and allow the exchange to make a claim.
Note that unlike the credit card buyout, wire transfer takes some time. After authorizing the payment, it will take about 2-4 days for the OMG to hit your account. Keep checking to note when the coins enter the account and transfer them to your wallet.
Where to Sell and Trade OmiseGO?
When people join cryptocurrencies, they are interested in making maximum returns on their investments. To sell and trade OmiseGO, you need the right platforms to trade them. At this point, you need to appreciate that the trading platforms are different from the crypto networks. While the crypto networks are decentralized and unregulated, the trading platforms operate under the local laws.
Most cryptocurrency exchanges have become an easy target for hackers. Late in 2017, a cryptocurrency in South Korea was hacked, and thousands of crypto coins siphoned. The cryptocurrency was forced to file for bankruptcy. It is, therefore, crucial to pick the best trading platform using the following tips.
- Pick a trading platform with a great reputation.
- Only go for the trading platform that does not have a hacking history.
- A great platform lists many crypto assets.
- Look for the platform with low trading fees.
- A better platform should have advanced analytics to help traders make the right decision easily.
Since the entry of cryptocurrencies, a lot of cryptocurrency trading platforms have entered the market. Some of the best options for trading OMG include Bittrex, Poloniex, HitBTC, Huobi and Coinspot.
How Much Are the Transaction Fees of OmiseGO?
OmiseGO, like other cryptocurrencies, entered the market with the main objective of operating a decentralized platform for sending cash. The method used to achieve this is bypassing the profit-seeking organizations such as banks. To make a transaction in the OmiseGO network, you are only charged 0.02% OMG. This is very low because the value of OMG is still low compared to other top cryptocurrencies such as Bitcoin. This is the reason that even people with other top coins such as Bitcoin are preferring to use OMG when sending value.
Cryptocurrency markets have been growing rapidly to keep pace with the rising number of crypto networks. The competition has been to craft a more reliable and stronger trading platform that users can rely on to trade securely. Remember that the markets require users to register for trading accounts and verify them before being allowed to trade OMG and other assets. Here are the top markets that you should consider for trading OMG.
- Binance is one of the youngest trading platforms available today. The platform was started in mid-2017 by Changpeng Zhao with the intention of helping people trade more efficiently. To make it more appealing, Binance also launched its native tokens referred as BNB. You can, therefore, consider trading OMG/BNB as one of the top pairs in the network.
- The market offers very many trading pairs to guarantee users of high profitability compared to other platforms. When this is coupled with a very small trading fee of 0.1%, traders are assured of keeping the bulk of the profits or growing their portfolios.
- The main disadvantage of using Binance is that it is a crypto-to-crypto only platform. This implies that you cannot trade using other options such as fiat or even credit cards. If you are new to cryptocurrency trading, it means that you will need to start from another market that allows fiat, wire transfer or credit cards.
- This is a leading cryptocurrency market started in 2014. The market was founded by Bill Shihara, Rami Kwach, Richiel Lei, and Ryan Hentz who aimed at making trading cryptocurrencies easy and secure. It was established after major exchanges were hacked and millions worth of coins lost between 2011 and 2014. The exchange has also cut a name for its focus on following the local Nevada laws.
- Because of the commitment to following the local Nevada laws, the verification procedure is very rigorous. You are required to verify the trading account using the date of birth, email address, email, and phone number. Notably, even with all these requirements, the platform still manages to process and open trading accounts in just 30 minutes.
- A lot of people using the Bittrex platform express their satisfaction because of many trading pairs. You have access to more than 250 crypto assets. It is worth noting that Bittrex carefully vets all the coins being listed in its network to reduce the risk of traders getting pulled into Ponzi schemes. The exchange is especially careful in adding new ICOs and forks because they are very risky.
- The trading transaction fee at Bittrex is 0.25%. Though the exchange can do better with a lower fee, many people consider it a great rate compared to others that charge as high as 1%. Additional benefits of using the Bittrex network including the stop loss feature that allows traders to limit losses. It also has the instant buy feature that helps one to make a move when a trading pair hits a specific preferred level.
- Even though Bittrex appears like the best platform that everyone should rush to, it is important to note that many clients have been complaining about its customer relations. When an issue is reported in the network, the Bittrex team takes a lot of time to reply.
- Poloniex, like Bittrex, is another cryptocurrency exchange based in the US. It was launched in 2014 and has grown progressively to become one of the leading cryptocurrency exchanges in the market today. The greatest selling point for the exchange is a large number of trading pairs. This means that you will always have a profitable OMG trading pair if the current option becomes undesirable.
- This market has cut a name for placing extra focus on securing traders’ assets. Once the trader moves the OMG quantity he wants to trade to Poloniex, it is moved to cold storage. Only about 30% is left for direct trading. The network only fetches additional coins on a need basis. This implies that even in the event of a loss, only 30% would be lost.
- The transaction cost at Poloniex is 0.25%. This is the highest amount that traders will have to pay for trading below 600BTC worth of OMG. However, those moving larger volumes (over 600 BTC) are charged a smaller fee.
- The greatest setback for the Poloniex market is that traders are not allowed to use fiat currencies. This means that you can only transact at the exchange using other cryptocurrencies. The other limitation of the network is capping daily withdrawals. Users can only withdraw a maximum of $2000/day worth of OMG. This is a huge setback especially for traders who target moving very large volumes.
- KuCoin has recently emerged as a favorite trading platform for crypto traders because of its unique operational model. The Hong Kong-based exchange places a lot of effort in identifying new assets that investors might be interested in. This means that you can easily identify ICO opportunities and other new token offers when they hit the market. This is one of the best methods of entering the crypto market and seeing the investment grow progressively.
- The platform is also a great place to trade because it lists very many crypto assets. Whether you want to trade in the top option such as Bitcoin and Ethereum or emerging assets such as OMG and TRON, this exchange will never disappoint. Besides, it also has a very small trading fee. Unlike Poloniex and Bittrex that charges up to 0.25%, KuCoin only charges 0.1%. This means that you can keep the bulk of the profits made after using the platform.
- The biggest drawback for the exchange is that only crypto-to-crypto trading is allowed. For people who want to trade using fiat, this is not the right platform. Even new traders who only have cash or credit cards can only operate in the network by starting from a different exchange.
Value of OmiseGO
OmiseGO value has been growing steadily since the launch of the ICO (initial coin offering) to early 2018. After the OMG ICO, the value of OMG was $0.6. However, this value grew steadily over the months to reach $20 by the close of January 2018. During the same period, the market capitalization also grew to reach 2.0 billion and joined the top 30 cryptos in the market.
Is It Profitable to Invest in OmiseGO?
Many people planning to join the cryptocurrency niche are driven by the high profitability reported in other networks such as Bitcoin and Ethereum. However, new cryptocurrency networks such as OmiseGO have demonstrated the capability to grow progressively and give high ROI to investors. Between mid-2017 and early 2018, the growth of OmiseGO coins was more than 100%. This means that a person who invested about $100,000 enjoyed rapid growth to more than $200,000 by close of January 2018.
OmiseGO has already excited the market, and some experts are indicating it could be the next big thing in the crypto world. From a highly advanced and experienced team to an enthusiastic community, it appears that the network is ready for takeoff. Therefore, if you are planning to invest in the network, it is time to make a move.
NOTE: It is very important to take caution when investing in every network because risks abound. Therefore, make sure only to invest the amount that you can afford to lose.
Where to Spend or Use OmiseGO?
The acceptability of a cryptocurrency can be partially measured by the number of stores that accept it for payment. Today, the most accepted crypto asset is Bitcoin. Though OmiseGO is very young, it is hasty to craft partnerships with most organizations to ensure it can be used for payment. For example, MacDonalds has promised to start accepting OMG for payment.
While the number of organizations promising to accept OMG for payment keeps growing, OmiseGO has a long way to go to reach the levels achieved by Bitcoin and Ethereum. However, you can still use OMG by converting to the accepted coins such as Bitcoins.
Can OmiseGO Grow to Become a Major Payment Network?
The main target of any cryptocurrency network is growing and becoming a major payment network. OmiseGO stands a great chance of becoming a great payment network because of its architecture. Here are the main reasons that are likely to catapult OmiseGO into a major payment network.
- The network is based on a renowned brand. Omise, the company behind OmiseGO cryptocurrency, has been in the market for some time and won the trust of many operators. In 2017, Omise was awarded the Digital Company of The Year in Thailand.
- The cryptocurrency has crafted so many partnerships. These include MacDonalds and Minor International. Once these partners start accepting payment in OmiseGO, it will easily become one of the top payment networks.
- OmiseGO aims to supplement other payment services as opposed to being an open competitor. By working with top brands such as Alipay, it implies that OmiseGO will make their clients part of its customer base.
- The cryptocurrency is attracting a very large community. Because of its progressive growth and being among the top crypto networks, a lot of people are developing trust in it. The growing community means that more users are using the network to trade and make payment.
- The transaction cost of using the network is very small. Because the operations at the OmiseGO network are peer2peer, the cost of profit-seeking centralized organizations is foregone.
While the indicators point to the possibility of OmiseGO becoming a major payment network, it is important to appreciate the barriers that stand in its way. The network development team has to work extra hard to stay ahead of competitors. This means creating better features and guaranteeing users of utmost security. The value also needs to grow progressively in order to keep drawing more partners and users.
How Does OmiseGO Work?
OmiseGO is one of the latest cryptocurrencies in the market that is promising to revolutionize the way crypto networks operate. The cryptocurrency uses the blockchain technology to help users send cash on a peer2peer model. This means that the system bypasses the centralized institutions such as banks.
- The OmiseGO blockchain
- The OmiseGO works with two main components in its ecosystem; the Blockchain and the wallet. The blockchain is a public ledger that allows nodes spread in the network to liaise with each other using advanced Proof-of-Stake consensus system. Once a transaction is released, it is confirmed by nodes spread in the network and added to the blockchain.
- As a decentralized network, it means that anyone can join and use the system. Some of the transactions that are done on the network include direct payments, implementing loyalty programs, asset management, supply-chain finance, and remittance among other activities based on smart contracts.
- The ultimate goal of OmiseGO is helping to remove barriers that that block interoperability between payment services. Once OmiseGO is fully implemented, it will be possible to send value from one service such as Visa to PayPal.
- The OmiseGO white-label wallet
- The second part of the OmiseGO is the wallet, referred as OmiseGO white-label wallet. This feature is yet to be installed. OmiseGO team has promised to release the wallet in the first quarter of 2018. The wallet is expected to be a new thing in the crypto industry because it will make it possible for a person to effect payment to Visa even though he is using MasterCard or other services.
Does OmiseGO Use Blockchain Technology?
Yes, OmiseGO uses the blockchain technology. The cryptocurrency operates as a public ledger comprising of transactions arranged in chronological order. To demonstrate how the blockchain technology works at OmiseGO, here is a demonstration.
When you initiate a transaction, it is picked by nodes spread in the cryptocurrency network. The nodes help to follow the sender and confirm whether the details are correct. Using Proof-of-Stake algorithm, these nodes have to solve complex mathematical puzzles for a reward. The information that nodes check and confirm include whether you have ample OMG to send to the target address.
The first node to send get the mathematical puzzle correct is rewarded with the transaction fee. The latest transactions are collated to form a block before it is added to the public ledger. Note that after the confirmation is done, the details cannot be changed. This means that transactions are irreversible.
Mining is the process of confirming transactions in a cryptocurrency network. The commonest type of mining is Proof-of-Work that uses the computing power of the nodes to solve mathematical problems. This is the method used by most cryptocurrencies including Bitcoin. In such systems, the reward is used to release the remaining coins into the network. However, the OmiseGO network is different.
OmiseGO uses the Proof-of-Stake algorithm to facilitate confirmation of transactions. This means that it is your stake and activity at the network that determines whether you will have a chance to confirm transactions. To mine the OmiseGO network, it is important to have a significant amount of OMG and be active in the ecosystem.
Unlike other networks, OmiseGO has set a penalty for those involved in confirming transactions. If you get the complex mathematical puzzle right and get to confirm the transaction, you are rewarded with the transaction fee. However, getting it wrong will attract a penalty. This penalty has has elicited mixed reactions in the crypto community.
What Are the Advantages of OmiseGO?
Cryptocurrencies such as OmiseGO entered the market to help redefine the process of sending funds. By allowing people to bypass centralized institutions, the OmiseGO network comes with numerous advantages including the following.
- Lowering the cost of transactions
- As a cryptocurrency network, OmiseGO allows users to make their transactions on a peer2peer basis. This implies that users are able to bypass centralized organizations such as banks. Because most of the bypassed centralized organizations are profit based, it means that cost of sending cash and investing in the OmiseGO network is very small.
- The best way to invest without worrying about third-party seizures
- OmiseGO is an anonymous network that allows users to operate hidden from third parties. Unlike banks that expose your details to so many people and that allow courts to easily freeze people’s savings, OmiseGO is different. Once you invest in the network, there is nobody who can unmask your identity or even freeze the account. It is the surest way to save and enjoy total freedom of mind.
- OmiseGO offers a faster and cheaper way of sending cash
- If you are sending cash from one country to another using the banking system, the process is lengthy and expensive. In most of the cases, several entities such as cooperating banks have to be involved. However, OmiseGO allows users to make direct transactions on the network instantly. As far as the sender and recipient are on the network, OmiseGO is a great way of sending cash.
- There is utmost freedom in the way people send value
- The OmiseGO network allows users to enjoy special freedom about investment and sending cash. Unlike banks that restrict people from using their systems over the weekends, during public holidays and at night, OmiseGO is different. As far as you know the public address of the payee, you can use the network any time of the day or night.
- OmiseGO allows people to use and own the network
- When people use the banking system, they feel passive. They simply send the cash and walk away after the transaction is over. However, OmiseGO allows users to join the network and own it. Once you join the network, your vote will be required to build consensus about the activities taking place there.
- OmiseGO network promises to enhance interoperability between payment networks
- Many payment networks out there only allow users to operate in their systems. For example, the VISA system cannot allow you to make payment to the PayPal system. Now, OmiseGO is promising to enhance this interoperability. This could see it grow into one of the major payment networks in the globe.
What Are the Risks of OmiseGO?
Just like OmiseGO comes with numerous advantages, it is important to also appreciate that there are many associated risks. The most notable of these risks is the threat of high volatility. Unlike the fiat currencies, OmiseGO responds to every event in the crypto world with immediate price shifts. This means that you can never be sure of the trend that the OMG value will take in the future. Here are more risks associated with OmiseGO.
- The risk of sending cash to the wrong address
- OmiseGO operates using the blockchain technology which involves capturing the latest transactions and adding them to the public ledger. This means that if you make a mistake and send coins to the wrong public address, they are lost forever. Because OmiseGO does not have consumer protection and cryptocurrencies are not regulated, it implies that there is nowhere to go to.
- The danger of getting hacked
- It is important to appreciate that there is no cryptocurrency that is 100% secure from hacking. You can be hacked at the network level, wallet level, or even the exchange when trading OmiseGO. If you get hacked, it means that that the coins are lost forever. There no way to restore them.
- Risk of being involved with criminals
- Because the OmiseGO network allows users to make transactions in total privacy, there is a high risk of getting involved with criminals. People posing as genuine traders can easily sell their products to unsuspecting buyers on the network. The danger is that you cannot cancel the transaction once it has been confirmed. This means that you will have been involved with criminals and indirectly promoted their illegal activities.
- The risk from emerging and more appealing cryptos
- The trend in the cryptocurrency world today involves unending effort to introduce something better and more appealing. For example, Ethereum was introduced to address shortcomings reported at Bitcoin. Now, OmiseGO has improved on what Ethereum introduced. In future, newer and more appealing cryptos will enter the globe and cause the value of OmiseGO to take a downward shift.
- The nodes are penalized for getting it wrong when confirming transactions
- The strength of a cryptocurrency network is the capability to continue growing a highly reliable network of nodes and users. However, the Proof-of-Stake algorithm model in use at OmiseGO could be working against it. When users join the OmiseGO platform to try and confirm transactions, the network penalizes them if they get it wrong. This means two things. One, the user who has been penalized could shy away for fear of getting penalized in the future. Two, the user could also opt to shift to other networks. If this model is not addressed urgently, it could ultimately work against the network.
- High volatility
- Cryptocurrencies have demonstrated to be highly volatile. The value of the coin shifts depending on the daily events. For example, reports of hacking in the exchanges cause the value of the OmiseGO to take a downward shift. Because of so many activities taking place in the crypto world, it is almost impossible to predict the expected growth curve for the crypto coin.
- The cryptocurrency is relatively new in the market
- Cryptocurrencies use advanced technologies that require ample time to test and confirm that they work. This is the reason that a lot of people have come to trust Bitcoin because it is close to ten years old. However, OmiseGO was very young by early 2018 having entered the market the previous year. This means that most of its features are still being tested and they might take a lot of time before being proven stable. For example, the OmiseGO wallet was scheduled to be released in the first quarter of 2018.
- The looming regulations
- With every country out there working extra hard to craft crypto regulations, a lot of fear has gripped the crypto community. There is a probability that these looming laws will be harsh and ultimately suppress OmiseGO and other cryptocurrencies.
What Happens if OmiseGO Gets Lost?
Cryptocurrencies are considered great options for investment because they guarantee high ROI (return on investment) within a very short time. However, it is very distressful to wake up one morning and find that all the OMG have been siphoned away. But the main question remains; what happens if OmiseGO gets lost?
To know what happens after a loss, it is better to follow the channel of loss. If you lost OMG because the network was hacked or you sent the altcoins to the wrong address, they have changed hands. The coins are still on the network but have a new owner.
If you lost the OGM coins through damage to the wallet or forgetting the private keys, it means that they are still in the network but in a dormant state. You can restore the coins by generating the private keys or getting another ER20 compatible wallet. If you fail to restore the coins, they will forever remain dormant in the network.
Since cryptocurrencies debuted, the topic of regulation has been a sticky one. Most administrations have held the view that the cryptocurrencies were invented to usurp their powers. In the US, the Federal Bureau of Investigations (FBI) was fast to note that the cryptocurrencies such as OmiseGO were presenting fraudsters with a new and effective method of advancing their actions.
For about ten years that cryptocurrencies had been in existence by early 2018, no jurisdiction had passed a legal framework to guide cryptocurrencies operation and use in their systems. Even the nations that were strongly anti-cryptocurrencies such China only used direct orders to ban some crypto activities only used direct orders.
Many new readers are fast to ask the question; why are countries taking so long to regulate cryptocurrencies such as OmiseGO? It is emerging that the process of passing cryptocurrency regulations is not as simple as many would anticipate. Here are some of the challenges faced by many governments trying to pass cryptocurrency related regulations.
- The cryptocurrencies are changing at a very fast rate.
- The topic of cryptocurrencies is taking a political angle.
- The cryptocurrencies such as OmiseGO are not owned by a single entity.
- Most administrations are only playing catch-up when technologies used in cryptocurrencies such as OmiseGO come into limelight.
One thing that people with interest in OmiseGO have to accept is that the regulations will finally dawn. Whether you are interested in investing OmiseGO or simply want to use its payment network for sending transactions, a legal framework will finally be available. Therefore, you should be ready for shocks that could result from these laws.
Is OmiseGO Legal?
OmiseGo is legal in most countries because none of them has passed legislation to guide its operations. While many countries have expressed the threats posed by OmiseGO and other cryptocurrencies, these digital assets continue attracting a huge following. But some people might ask; why are the administrations so worried about the cryptocurrencies?
- They are making it difficult for most countries to control inflation.
- Most banks are facing the risk of closure of as more people go for alternatives such as cryptocurrencies that are cheaper.
- There is a serious risk of governments losing their appeal as people look to OmiseGO and other cryptos for investment, transactions, and solution for most issues facing them.
- The cryptocurrencies are synonymous and likely to facilitate criminal activities.
Because of these serious concerns, every country has been working on its own legal framework for regulating cryptos. Here is a closer look at a number of states and their reactions.
1) The United States
- When cryptocurrencies debuted, the US was the first to note the threat they were posing to different areas of its economy. However, the federal administration had not passed any regulation by early 2018. The only federal authority that came out to give some instructions on cryptocurrencies was the Commodities Futures Trading Commission (CFTC). The commission clarified that traders of cryptocurrencies should look at them as commodities. This clarification was mainly aimed at ensuring every OmiseGO, and other crypto traders pay taxes.
- The US has taken a global approach after realizing that suppressing the cryptocurrencies at home is likely to have limited effect. The Treasury Director, Sigal Mandelker has sought the cooperation of global powers in curbing crypto growth. After returning from South Korea, China, and Japan, he pointed that the regulation of cryptos would take a global approach.
- OmiseGO is legal in Russia. When cryptocurrencies were introduced, Russia indicated it had no intention of regulating them. However, things changed after the government realized that cryptocurrencies such OmiseGO could change the patterns of investment, snatch the banking power, and become political.
- In the last quarter of 2017, the finance ministry pointed that there was a legal vacuum in use of cryptocurrencies. Then, the Russian Central Bank went into overdrive to help craft a legal framework for cryptocurrencies applications. By the end of January 2018, the ministry of finance indicated that it had already completed the draft bill that targeted controlling mining, ICOs, trading, and other aspects of OmiseGO and other cryptocurrencies.
- OmiseGO is legal in China. China is one jurisdiction that has hit cryptocurrencies hardest in the history of blockchain technology. The Chinese government has indicated that cryptocurrencies such as OmiseGO are out to destabilize the nation and make it difficult for the government to operate. However, the country is yet to craft a legal framework for cryptocurrencies.
- China started by banning Initial Coin Offerings and freezing accounts of exchanges that run them. It also banned mining and most crypto related activities. However, these efforts have not suppressed OmiseGO and other cryptocurrency activities proliferation in the nation.
- While China and Russia have been very harsh about cryptocurrencies and vow to prevent their proliferation, Switzerland is doing the opposite. The jurisdiction is welcoming cryptocurrencies to go and set their bases there for extra support. In January of 2018, Schneider-Amman, the Switzerland's Economic Minister explained that they are looking forward to creating a crypto nation. This support has seen more than 50 cryptocurrency foundations opting to set their operations in the jurisdiction.
OmiseGO and Taxes
The topic of cryptocurrency taxes is as complex as regulations. When cryptocurrencies were introduced into the globe, they became an instant attraction to many people because they allowed them to operate anonymously. Most of them held the view that being anonymous was ample to assist them to operate tax-free.
While it is true that you can operate in cryptocurrencies without getting noticed, tax experts have called for some caution. Though you might be operating anonymously today, the situation could change in the future as new technologies get discovered.
One demonstration that showcases that tax avoidance is not an option when using OmiseGO is what happened at Bitcoin. Initially, Bitcoin users thought that they were anonymous for life. This made a lot of people including the Wannacry cybercriminals to opt using Bitcoin. Following the mid-2017 Ransomware attack to institutions in Europe, the Wannacry criminal group insisted to be paid in Bitcoin because it was considered anonymous. Now, the group is unable to withdraw Bitcoins for fear of getting caught after new technology made it possible to unmask users.
However, the benefits that come with OmiseGO are very many and, you should not run away because of taxes. You can enjoy all the benefits and remain tax compliant. Here are some tips for enjoying all benefits of OmiseGO and being on the positive side of the tax regulation.
- Look at revenue from OmiseGO trading as taxable income.
- Traders using OmiseGO in their businesses should ensure that related revenue is taxes just like other transactions.
- Always capture the details of the transaction including the value of OmiseGO in fiat currency.
- Do not hesitate to seek help from an expert if you encounter difficulties on how to handle crypto related transactions. The experts can also help you address the revenue not captured in previous tax reports.
Does OmiseGO Have a Consumer Protection?
OmiseGO does not have consumer protection. OmiseGO is a cryptocurrency that is owned by nodes and users spread in the network. When founders release cryptocurrencies, they cease ownership completely. At OmiseGO, the network employs Proof-of-Stake consensus model which means that the nodes must agree before any action is taken.
Because OmiseGO does not have consumer protection, it means that you are on your own when using the network. If you send funds to the wrong address; they are lost completely. There is nothing you can do. You cannot report to the network or even the justice system because OmiseGO is unregulated. To be sure of operating securely in the OmiseGO network, here are some useful tips.
- Always triple check the public address before sending funds. This will reduce the risk of sending to the wrong address.
- Only use one computer to access and transact OmiseGO. The computer in use should also be updated and protected with appropriate firewalls.
- Make sure to select the wallet of choice with extra care. You should particularly pick the wallets with no hacking history.
- Pick the trading exchanges with a lot of caution. These are the most vulnerable of all the platforms. It advisable to select the agency that keeps crypto coins in cold storage and that does not have a history of hacking.
- Do not share the private keys with anybody. The moment you share the private keys, it means that your OMG can be sent to other addresses without your consent.
Illegal Activities with OmiseGO
The architecture of cryptocurrencies such as OmiseGO makes them a great option for criminals. Because they are anonymous, many cryptocurrencies are considered perfect options for masking criminal’s identities. However, no illegal activity had been reported in the OmiseGO network by early 2018.
Is OmiseGO Secure?
The success of any cryptocurrency is dependent on the ability to secure the users’ assets. OmiseGO has won praise from far and wide because of its ability to protect users from attacks. Since the cryptocurrency was launched, no successful attack has been reported in the network. Here are the main channels used to secure the OmiseGO network.
- A highly advanced security team that works on top-notch features.
- The cryptocurrency is built on top of the Ethereum platform. This means that its blockchain enjoys protection from the mother network and its own blockchain.
- The OmiseGO network uses advanced cryptography to help keep details of all the transactions free from third-party access.
- OmiseGO uses Proof-of-Stake algorithm that selects only those with a high stake to help confirm transactions. Unlike with the Proof-of-Work model, it is very difficult for a single entity to mine a lot of coins and own more than 50%. This reduces the risk of nodes colluding to harm the network.
Is OmiseGO Anonymous?
OmiseGO is anonymous. The cryptocurrency network uses advanced encryption when a user initiates transactions. All the details of the user, transaction info, and the trading details are encrypted so that no one in the network can unmask you. This guarantees you of utmost anonymity when operating in the OmiseGO network.
Has OmiseGO Ever Been Hacked?
OmiseGO has never been hacked. When the OmiseGO team worked on the new network, they wanted to guarantee users of a highly secure system. They studied the previous networks and channels used by hackers to break into crypto networks. These efforts and a highly aggressive team have helped to keep the network free from hackers. Since its establishment, no successful hacking attempt has been reported.
Here, it is important to appreciate that saying no successful attack has been reported does not mean that attempts are not made. The OmiseGO team indicates that there are numerous hacking attempts every month. What the team does is updating the network regularly and proactively blocking bugs.
NOTE: There is no network that can be considered 100% secure from hacking. Therefore, you should always try to spread the risk by investing in several networks. For example, you could buy OMG, Bitcoin Cash, Ripple, and Qtum altcoins to spread the risk.
How Can I Restore OmiseGO?
Every day, reports of people who have lost their altcoins keep hitting the news. From hacking at the exchange level to individual networks, the reports have become very common. The good thing is that you can restore OmiseGO depending on the method of loss.
One, if you lost OmiseGO through forgetting or loss of private keys, it is possible to restore the coins. You will need to use the private keys recovery seed that you got the first time you used the OmiseGO wallet.
Two,if you lost the coins through damage to OmiseGO wallet, there are several methods of restoration. One, you can use a backup. Simply install the backup and update it to get the OmiseGO coins restored. You can also look for another ERC20 compatible wallet and reconcile it with the seed phrase.
NOTE: If you lost OmiseGO through sending the coins to the wrong address or hacking, there is no method of restoring them. They are lost forever.
Why Do People Trust OmiseGO?
The rate of new cryptocurrencies entry is very high. Call it supersonic speed. From 2009 to early 2018, more than 1200 cryptocurrencies had entered the market. The adoption of the networks is now shifting from the notion of decentralization to stiff competition. One notable thing about OmiseGO is that the community is developing a lot of trust in it. This trust can be linked to several things.
- The OmiseGO network value has been growing progressively.
- Unlike other networks that appear to be struggling to remain afoot, OmiseGO value and users have been growing steadily. Many investors are seeing OmiseGO as a great bus to join expecting exponential growth in the next several years. They are optimistic that it will finally follow the projectile like that of Bitcoin.
- The architecture of the OmiseGO network targets building partnerships.
- Most cryptocurrencies out there are designed to provide alternative means of sending cash. They are categorical that the centralized networks and other services are expensive, unreliable, and complicated. However, it is different when it comes to OmiseGO network. By targeting to operate agnostically, the network has presented itself as a reliable partner to other networks such as Visa. This means that the potential for growth over time is very high.
- The lead team is very committed to progressive growth and success of the crypto network.
- A cryptocurrency payment network is as good as the lead team. OmiseGO development team has some of the top brains in the fintech and cryptocurrency industry today. After operating Omise successfully and winning numerous awards in Thailand and globally too, people believe that this team can maintain progressive growth over time. This growth of the network and value is what people are interested in when building trust in a network.
- There is a special commitment to progressive improvement.
- The OmiseGO team has demonstrated its special commitment to improving the network progressively. They have promised a raft of features for the network. This means that users can expect the system to get improved progressively and continue improving over time.
- The OmiseGO network is very secure and reliable
- One of the things that can easily kill a crypto network is threats to security. OmiseGO development team has been working extra hard to provide users in the network with a highly secure trading platform. Since the network was founded in 2017, no case of successful hacking has been reported in the network. The development team has been very active in updating the network and learning from other networks.
History of OmiseGO
The history of OmiseGO goes back to 2013 when by Donnie Harinsut and Jun Hasegawa formed Omise. Omise is a company that was incorporated in Bangkok, Thailand as a fintech. The company operated as venture-backed payments firm with the main focus in Thailand, Singapore, Japan, and Indonesia.
In 2015 and 2016, the founders developed a special interest in cryptocurrencies and approached the Ethereum Foundation for assistance. They brought aboard experts from Ethereum to assist craft a new platform on the Ethereum system. Some of these experts included the founders of Ethereum, Vitalik Buterin, and Gavin Wood.
In June of 2017, they released the initial coin offering (ICO) that raised $25 million USD. Immediately after launch, the OMG tokens were trading between $7 and $9.
In the first quarter of 2018, the OmiseGO team promised to release its own wallet that would be compatible with other service providers. This is expected to be a game changer in the financial sector by linking the conventional payment services such as MasterCard to crypto networks.
Who Created OmiseGO?
OmiseGO was founded by a team of computing professionals who wanted to bring difference on the way things were done in crypto networks. They wanted to help everybody get top notch financial services at a lower fee. They also wanted to guarantee users of extra security and work closely with other payment service providers for faster growth of the industry.
The main founders of the crypto network included Jun Hasegawa who serves as the COO (Chief Operating Officer) of Omise and Donnie Harinsut. But their efforts could not be complete without the input of top advisors including Vitalik Buterin (the founder of Ethereum) and Julian Zawistowski (the founder of Golem). This team of highly advanced experts in blockchain technology is what has given OmiseGO the current high demand in the market.
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