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Waves cryptocurrency guide advises where to buy and how to buy Waves. 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 Waves as well its status in the world of cryptocurrencies.

Waves, Saturday, 2021-04-10

Waves (WAVES)

What Is Waves?

The blockchain technology will change the world from the way people know it. That is right. Even if you do not want, your lifestyle will still change. While this is no doubt true because the blockchain technology is still in infancy, the growth is tremendous. Call it supersonic speed.

Between 2009 and early 2018 when Satoshi Nakamoto introduced Bitcoin, the first blockchain network, the crypto niche was thrown into a spin. Over 1500 new cryptocurrencies have entered the market. Almost every other day, a new ICO (initial coin offering) is released. The competition is also intensifying so much. In this guide, we take a closer look at Waves. Therefore, what exactly is Waves?

Waves is an open source cryptocurrency and a platform designed and run by the Waves Platform AG. Its architecture includes smart contracts which means it allows users to launch and run their crypto tokens. Users on the network can also decentralize crowdfunding, trading and use fiat currency gateways right in their wallet. This means that it closely mimics the Ethereum blockchain.

The main focus of Waves was addressing the many challenges that users face trying to adapt the cryptocurrencies in their enterprises. Whether you have a small enterprise and want to take advantage of the blockchain technology, Waves makes it easier for you. You can design tokens, run smart contracts on the network and source funds for local or international projects.

Its unique design, architecture, and fast-growing community have made people start looking at it as the next big thing. The future is very bright for Waves.

Beginner's Guide to Waves

Are you looking forward to joining the cryptocurrency industry? The niche is just gaining momentum. After a rough period between 2009 and 2017 that saw most administrations threaten to ban, block and outlaw cryptocurrencies, things are now easing up from 2018. Today, more people and even administrations are in agreement that there is something good with cryptocurrencies.

File:Waves logo2.png
Waves old logo

Think of being able to send funds across the globe at a very small fee, earning a lot of cash for being part of a network, and actually owning the network. This is the reality that top cryptocurrencies such as Waves promise and guarantee users. This guide is a comprehensive review of this cryptocurrency to help you make the right decision on whether to join it or not.

The cryptocurrency was started in April 2016 by Sasha Ivanov who felt things were not going well in the NXT (blockchain platform) project. After creating the Waves core code from scratch, it has now proven to be better than most cryptocurrencies out there. For example, it addresses most issues reported in the Bitcoin network such as speed, scalability, and fungibility. This, together with many unique features means that Waves is one of the high potential cryptos in the market today.

To decide to join the Waves network, you need to evaluate all its components carefully. This is why this guide was created. The guide looks into major aspects of Waves including what it is, how to buy, wallets, security, anonymity, markets, and history.

It also evaluates the blockchain technology, how to mine, and profitability. No matter the questions or doubts you have about the Waves network, the answers are in this guide. Welcome to learn and get more about Waves from this guide.

Where and How to Buy Waves?

When Waves started trading in the markets in mid-2016, its value was slightly above one USD. However, this value grew over time to hit an all-time high of $16 in December of 2017. This was a huge growth. Though the price fell to about $8 in the subsequent months, the cryptocurrency had already demonstrated its affinity for growth.

Many people who see this trend indicate it is a sign of great things to come. Therefore, what is the best place to buy WAVES? How can one buy the crypto assets?

Waves, like other crypto assets, can be bought in the cryptocurrency markets. These are platforms that bring together sellers and buyers of various crypto assets. Most of these platforms are guided by market demand and supply of the respective cryptocurrencies.

  • Cryptocurrency exchanges: These are the main platforms to buy any crypto coins including WAVES. The best examples at this point include Binance, Bittrex, Waves DEX and ShapeShift.
  • Cryptocurrency brokers: These are privately owned trading platforms for selling cryptocurrencies. Though their prices closely mimic those of the exchanges, they are adjusted upwards to include the brokerage profits. Some great examples include Bitpanda and Coinmama.
  • Cryptocurrency clubs: Crypto clubs are groups that have sprung out in the recent years to help people in the crypto world meet, share and discuss cryptocurrencies. The platforms have also become very effective for people who want to sell their cryptocurrencies directly without the rules set out by exchanges. One great example of these clubs is the Cryptocurrency Club of London.

Once you have decided where to buy WAVES, you have to follow the due process. The first step is acquiring a cryptocurrency wallet. This is the location that will hold your WAVES tokens after the buyout is over. You should look for a secure and an easy to use cryptocurrency wallet.

If you opt to buy WAVES from the Exchanges, you will be required to open an account and verify the details. This is because exchanges are governed by local laws. Buying from a broker or cryptocurrency clubs will only require you to have a cryptocurrency wallet. Some brokers might also have additional requirements depending on their locations.

Waves Wallet

If you have interest in cryptocurrencies, the one must have thing is a cryptocurrency wallet. This is a location that holds all your crypto assets. The wallet also makes it easy for people who want to make payments, get paid or trade their assets. Before digging deeper into the different types of Waves wallets, it is crucial to look closer at the concept digital wallet.

Though the accepted description of a cryptocurrency wallet is a storage location, you need to appreciate that this is a misnomer. In reality, the digital assets such as WAVES never leave their native networks. This means that whether you have bought them on the exchange, brokers or from people who have them, they can ONLY reside in the network.

What the wallets store are special codes that point at the digital assets you hold in respective networks. The Waves wallet stores private keys and public keys. The private keys is a string of codes that activate your coins in the Waves network. You cannot make any transaction without the private code. The code should never be shared.

The public keys, like the name suggests, can be shared in the network. The code is used by the nodes spread in the network to confirm transactions related to your account. If you are selling an item and want to be paid in WAVES, you provide the sender with public keys.

Having looked at the misnomer that is cryptocurrency wallets, it is time to shift to the best Waves wallets. Here is the list.

  • Waves Wallet (Mobile wallet).
For people who are always on the move, the best wallet to consider is the Waves Mobile Wallet. This is a wallet designed as a light app so that you can access the Waves blockchain and initiate transactions right on the phone. When you install the wallet, it generates the private keys and the recovery seed phrase that should be used in the case of a loss.
The main features of the Waves Mobile wallet include showing completed and pending transactions. It also allows users to send WAVES or other assets, support multiple wallets in one device, and use DEX (decentralized exchange).
Note that the private keys and seed phrase are only stored on the phone. This means that in the case of a loss, you can easily lose WAVES. You should, therefore, make sure to copy and store them in a different location. You can also backup the wallet to make the process of recovery easy and fast.
  • Waves Lite Client (web-based wallet).
If you want to access Waves online, the best wallet is the Waves Lite Client. It is a light version of the Waves standard node but designed to operate without requiring you to download the entire blockchain. The wallet is designed as a Chrome app that allows you to take control of your account in the Waves blockchain easily. It also allows users to create addresses and access the Waves blockchain to initiate transactions.
As a web-based application, it is important to appreciate that you are at a greater risk of getting attacked by hackers. Therefore, you should be extra careful with the sites you visit and always keep the device of choice updated.
  • WavesGUI (desktop wallet).
The Waves GUI is the main client on the Waves blockchain. The Waves development team crafted this wallet to help users enjoy higher levels of safety and cut the costs that nodes were charged for using thirds party wallets. To use the wallet, you need to download and install it on the desktop.
The wallet will generate the private keys and the seed phrase that are stored exclusively on the desktop. Therefore, you should ensure that the private keys and the seed are copied and backed up in a different location away from the main computer. WavesGUI makes you one of the nodes which imply that you are part of the network and can use it to send transactions, receive WAVES and even confirm transactions.

Where to Buy Waves with Credit Card?

Credit cards are the most accepted methods of payment in the globe today. Many people prefer them because they are easy to use in both local shops and e-commerce stores across the globe. Now, credit cards have become the ultimate choice for people who want to buy crypto assets such as WAVES. Here are three main locations where you can buy Waves with a Credit card. Note that in some platforms, you have to buy other cryptos such as Bitcoin and exchange with WAVES.

Where to Buy Waves with PayPal?

PayPal is a leading payment network that has gained a lot of popularity for use in online payments. However, it is yet to get accepted as a means of payment for crypto assets. Though PayPal has indicated it is in the process of facilitating payment to crypto related networks, users will have to wait until the shift takes effect. If you have funds in the PayPal account to buy cryptocurrencies such as WAVES, the best method is offloading to an accepted platform such as bank account or credit card.

How to Buy Waves with Wire Transfer?

Banks are perhaps the most trusted institutions in the globe today. Their effort in scrutinizing users, payers, payee, and all sources of funds has made them win a lot of trust. Now, people with cash in the banks can also buy crypto assets directly with wire transfers. Here is the procedure of buying WAVES with a wire transfer.

1) Start by selecting a cryptocurrency wallet of choice. This is very important because the wallet will hold your crypto coins after the purchase process is over.
2) Select an appropriate trading platform that accepts payment with a wire transfer. You could also select a platform that allows users to buy an asset that can be exchanged with WAVES. Some great options include CEX.io, Coinmama, and Changelly.
3) On the cryptocurrency platform of choice, open a trading account. You will also be required to verify the account using personal details.
4) On the selected trading platform, go to the buy-tokens section and select the token of choice. Note that you could select WAVES or another token that can be traded directly for Waves. Then, select pay with a wire transfer.
5) The transaction will go into a pending mode until the cash from the bank hits the exchange account. It will take a few days for the transaction to be completed. If you bought WAVES, they will go directly into the trading platform account. You need to move them to your wallet. If you purchased a different crypto asset such as Bitcoin, you need to exchange it for WAVES in an appropriate exchange such as Waves DEX.

Where to Sell and Trade Waves?

If you have been in the Waves network for some time, the chances are that you have a significant number of WAVES. What exactly do you do with them? You can hold the coins in the wallet waiting for them to gain value and recover it. You can also use the coins to do shopping in the market. The last and, perhaps the most profitable option is trading WAVES in the market. This involves identifying appropriate trading platforms and pairing it with other assets for profit.

The selling and trading platforms for WAVES are mainly governed by local laws. This means that you must be prepared to open trading accounts and verifying them with personal information such as phone number and proof of address. The only exception to this verification is Waves DEX (decentralized exchange) that operates like the conventional blockchain network.

It is important to appreciate that trading and selling platforms are some of the most vulnerable points in the cryptocurrency industry. Most attacks and successful hacking are reported in the exchanges. Therefore, you need to select the exchange using the following tips.

  • Only select the most secure trading platform.
  • The best platform should not have a hacking history.
  • Only go for the platforms that list many trading pairs.
  • The ideal trading platform should have low trading charges.
  • The platform should have easy to use trading metrics.

Some of the top trading platforms you should consider include CEX.io, Coinbase, Binance, and Waves DEX. Remember that you must have the right Waves wallet to sell and trade the tokens.

How Much Are the Transaction Fees of Waves?

The main reason that has been driving people to cryptocurrencies such as Waves is the desire to enjoy lower cost of sending funds both locally and internationally. Waves is a decentralized cryptocurrency network which means it allows users to bypass centralized profit-seeking organizations such as banks. Whether you are making payment for merchandise from an e-commerce store or simply want to send funds abroad, the cost on the network is very small compared to what you would have paid using a credit card or bank.

The average transaction cost of Waves is only 0.001 WAVE. While it is true that the low transaction cost is because of the current Waves value, it still makes the cryptocurrency very desirable. But there is a danger of the crypto suffering the same problem faced by top cryptos such as Bitcoin after the value shifts upwards. To make Waves more attractive and continue with the path of becoming a major payment network, it is important that the price is reviewed downwards as the value shifts upwards.

Waves Markets

The cryptocurrency market has been growing rapidly to keep pace with the rising number of crypto assets and growing demand. The markets operate just like the standard forex markets though they trade in crypto assets as opposed to fiat currencies. Here are the top four cryptocurrency markets to consider for trading Waves.

Binance is one of the youngest cryptocurrencies in the market today. The market was started in mid-2017 by Changpeng Zhao who targeted making crypto trading easy, secure, and fast. The Binance market is preferred by traders because it lists a lot of cryptocurrencies. This means that you will always have very many assets to jump to if the current trading pair becomes less desirable.
The cost of a transaction is 0.1%. This makes it one of the cheapest in the market today. In fact, you can even enjoy lower rates by trading in the exchange and paying with its native token, BNB. They provide 50% discounts to traders on the network who make payment with BNB.
The biggest con of using Binance is that it is a crypto-to-crypto trading platform. This means that people with credit cards or fiat currencies such as USD and GBP, have to start from other exchanges such as CEX.io or Coinmama.
  • Waves DEX.
While the cryptocurrencies have been the greatest pillars of decentralized operations, they have failed to break from the yoke of centralized trading. Most of them operate like standard forex markets. This means that users are forced to open and confirm trading accounts using personal info before being allowed to trade. However, Waves has closed this chapter by introducing a decentralized exchange. This means that you do not need to open additional accounts or authenticate them with personal info that compromises anonymity in the network.
The Waves DEX (decentralized exchange) helps to reduce most of the risks associated with the centralized exchanges. Unlike the centralized exchanges that require traders to move their tokens from the wallet, the Waves DEX allows users to trade with tokens stored right in their wallets. This means that the chances of getting hacked are very low.
The good thing with Waves DEX is that there is no admin to follow the transactions and freeze your account. There are no limitations after users create trading accounts. The exchange runs an automated matcher to pair orders from buyers and sellers demands.
Waves' decentralized exchange (DEX)
Every person joining the cryptocurrency industry wants to get an easy to use platform for buying and selling crypto tokens. CEX.io is the leading cryptocurrency trading platform that allows people to buy cryptocurrencies with both cryptos and fiats. While other exchanges simply limit users to crypto-to-crypto trading, CEX.io is different. You can use credit cards, cryptocurrencies, and wire transfers on the exchange.
If you want to use CEX.io, you have to start with buying Bitcoins and then move them to another exchange such as Waves DEX to buy and trade WAVES. Another unique thing about CEX.io is that it provides advanced metrics for users. It also provides trading margins of 1:2 and 1:3 leverage and automated borrowing.
Other benefits of CEX.io include availability on multiple platforms including the main browsers, mobile apps, WebSockets and REST API among others. No matter where you are located, the chances are that CEX.io will be there because it is accepted in more than 99%of the states globally.
  • ShapeShift
ShapeShift is a cryptocurrency trading platform that entered the market in 2015. The market has won the affection of many people because of its focus on listing emerging cryptos. This means that traders are sure of catching the perfect opportunities that come with new tokens before they start growing.
The biggest selling point of ShapeShift is the advanced metrics that help traders to decide on the best points to move. Whether you are a new cryptocurrency trader or have been in the market for some time, this exchange’s metrics will help you to understand the dynamic and trade like a pro.
The main issue associated with ShapeShift is the hacking history. In 2016, ShapeShift was hacked and more than $200,000 worth of crypto coins siphoned away. Even though the crypto has worked very hard to rectify the problems that resulted in hacking, many are the people who opt to walk away or trade very low volumes.

Value of Waves

When Wave was launched, the cryptocurrency industry was reeling from the shock of the Slockit DAO that turned out into a serious disaster. The fears of investors made WAVES to be undervalued at launch. However, it was able to overcome the market fears and take an upward trend that has been impressive.

Immediately after launch, the value of WAVES was slightly over one USD. Indeed, the value sank below one dollar mark immediately after and remained there between June of 2016 and May of 2017. By 19th December of 2017, the value hit $16, the highest point in the history of Waves. This was a huge growth of more than 1500%. The market capitalization also grew progressively to reach $1.7 billion.

Though the value of WAVES took a sharp downward trend between December of 2017 and February of 2018 when it reached the $7 mark, the level was still very high compared to the time of launch. By February 19th, the market capitalization had also shifted downwards to about $800 million.

Many people have expressed optimism that WAVES will continue in an upward trend in the coming years to deliver high ROI. There is a consensus that the architecture of Waves is better than that of top cryptos such as Bitcoin, and its growth is likely to be explosive in the coming years.

Is It Profitable to Invest in Waves?

When people decide to join cryptocurrency networks, the main thing is gauging their profitability. In fact, you will hear some people asking whether the cryptocurrency of choice can mimic the growth demonstrated by Bitcoin. Waves is one cryptocurrency that stands out from the rest because of its architecture and fast-growing community. Between launch and close of 2017, the growth of Waves had hit more than 1500%. This means that if you invested $1000 in Waves around June of 2016, the value would have grown by more than 1500%. That is incredible.

If you are yet to decide to join Waves, it is important to appreciate that it is getting late. All indicators point at the huge potential that is Waves. Here are indicators that Waves will continue being highly profitable.

  • The community is growing rapidly.
  • A lot of multinationals are expressing their trust in it.
  • The value has been on an upward trend.
  • It is one of the most secure networks.
  • It is better than other cryptos in terms of scalability and speed.
  • Waves is one of the few cryptos with Decentralized Exchanges. The enhanced ease of use and anonymity are likely to raise the demand and value of WAVES.

Where to Spend or Use Waves?

One of the main ways of assessing the acceptability of cryptocurrencies is looking at the stores that accept them for payment. On this front, other networks such as Bitcoin and Ethereum appear to be racing right ahead. Waves is still lagging behind and has to work extra hard to ensure that its users can walk into stores and pay with WAVES. At the moment, Waves has entered into partnerships with top organizations that have promised to start accepting it for payment. Some of these organizations include the Moscow Stock Exchange, Russian Gazprombank, and Microsoft.

Even though Waves is not accepted in many conventional stores, it does not mean that you cannot pop in and make a purchase. Because Waves as an inbuilt exchange, the Waves DEX, you can simply convert WAVES to the accepted currency and make a purchase.

Can Waves Grow to Become a Major Payment Network?

Yes, Waves can become a major payment network. Every cryptocurrency out there is in the race to becoming a major payment network. Since 2009 when Bitcoin was launched, both private and public entities have taken notice of cryptocurrencies. Even though the resistance, especially from the governments, is still high, there is no doubt that times are changing very fast. But Waves is accelerating past others in becoming a major payment network. Here are some indicators that could easily catapult it into a major payment network.

  • The cryptocurrency has presented itself as a partner to other payment organizations as opposed to being a competitor or a threat. Now, banks are taking notice and coming aboard to use the system. For example, the Russian Gazprombank is already working with Waves to enhance its services. This means that most of the clients in the bank will also be Waves customers.
  • The cryptocurrency has presented itself as a better network compared to the current cryptocurrencies. From experts to the crypto community, the community believes that this is the next big thing in the market. All the new users are likely to continue using Waves and making it a major payment network.
  • The transaction cost at the Waves network is very small. Because the value of Waves is still low, the cost of sending cash is very small. Now, many people are opting to offload their crypto coins such as BTC to Waves in order to enjoy the lower rates.
  • The lead team appears highly committed to ensuring that the cryptocurrency network grows fast into a major payment network. This has made the team to progressively work on new and more appealing features that can help to catapult it into a major payment network.
  • Businesses are free to launch their tokens and smart contracts on the network. This means that every client that will join these new enterprises on the Waves network will indirectly contribute to the cryptocurrency's growth and success. The compounded effect is likely to catapult Waves into a major payment network.

Note that even though all the signs indicate that the network has a huge potential, the achievement can only be realized if the current growth is maintained. The Waves development team must move with speed to craft more partnerships especially those that will allow direct payments.

How Does Waves Work?

The Waves cryptocurrency was designed to make value transfer easy, direct, cheap, and highly efficient. If you opt to use the standard cryptocurrency networks such as Bitcoin, it will require regular nodes updates when a new transaction type happens. However, Waves used a type of plug-in as an extension on top of the core code. This means that you only use the current network state as opposed to downloading the entire blockchain to start using the Waves platform. Waves operate using the following key features.

  • The Custom Applicable Tokens (CATs): The main aim of the Waves platform is facilitating easy and direct creation of tokens. This means that anyone on the network can create tokens and make them available on the web, on Android and iOS devices Note that the tokens can be created without involving middle parties, and take the form you want.
  • The Miners Reward Tokens: This is the type of token distributed with every new block created in the Waves network. The main focus of this token is incentivizing the miners to keep working and maintaining the network.
  • The Waves Community Token: This is the token distributed to all WAVES holders every month. The distribution is done commensurate with the WAVES that nodes held in the previous month. It aims to encourage the nodes to hold the native tokens for longer.
  • The WAVES token: This is the main asset in the Waves network. It is better to refer to it as the main fuel of the Waves network. It also acts as a spam-prevention mechanism. The total supply of WAVES tokens is 100 million. The transaction charges for moving WAVES is 0.001 WAVES. This is the reward used to motivate miners and the community.
  • The Decentralized Exchange (DEX): This is one of the unique features of the Waves network. The main aim of the DEX is to help decentralize crypto exchanges and allow users to trade right from their wallets. The exchange utilizes an automatic matcher based on the listed buy-sell orders.

When a user initiates a transaction in the network, it is picked by the nodes with the highest stake in the network. The nodes confirm the transactions directly and complete the process by adding blocks to the Waves blockchain without going through centralized organizations such as banks. Note that the transactions do not necessarily have to involve sending funds; they could be anything including implementation of smart contracts in the network.

Does Waves Use Blockchain Technology?

Waves uses blockchain technology. It is designed to run as a public ledger that captures and stores every transaction details to make them permanent. This means that once a transaction is verified and added to the public ledger, it cannot be reversed or altered.

The Waves cryptocurrency employs the Proof-of-Stake algorithm that categorizes users (nodes) spread in the network into two. This is called a two-tier-architecture that has light weight nodes and full nodes. The model strongly borrows from SuperNET Lite Client that was validated by NXT project.

The Waves network addresses the problem of scalability through use Scorex Platform. This platform allows users to only use the current network state as opposed to downloading the entire history as it happens with most PoW (Proof-of-Work) models. The network state is used to craft a simplified verification process that makes it easy and fast to complete transactions.

Using the leased Proof-of-Stake model, the Waves network released a total of 100 million tokens WAVES into the network. The leased Proof-of-Stake and its unique two-tier architecture allow light weight nodes to lease their stake to the full nodes for transactions verification. This means that you do not have to achieve full node status to start earning from Waves.

Once the full nodes confirm the transactions in the Waves network, the details are captured in the public ledger, and they are rewarded with the transaction fees.

Mining Waves

Mining is the process of confirming transactions in a cryptocurrency networks. It is also the main process used to release new coins in many Proof-of-Work networks such as Bitcoin. However, Waves employs Poof-of-Stake model which means that users in its network must have a high stake (WAVES) to be able to confirm transactions. The Waves model allows light weight nodes to lease their stake to full nodes for mining. This means that even the light weight nodes also get rewarded with a portion of the transaction rewards given to the full nodes.

To mine the Waves in the network, you need to run as a full node. You can achieve this by acquiring a high stake in the network. By early 2018, you needed to have 1000 WAVES to be considered a full node. For those with less than 1000 WAVES, it is still possible to mine by leasing your stake to the full nodes. You can also lease to top public mining pools such as WavesGo. Remember to always review these pools carefully before leasing your stake to them.

What Are the Advantages of Waves?

Many people who intend to join cryptocurrencies are interested in knowing the advantages they will get on the networks. Initially, it was difficult to associate with benefits that come with cryptocurrencies because of negative publicity. However, users, experts, and even institutions have come out to demonstrate the numerous advantages they enjoy after using cryptocurrencies. Here are the main advantages of joining and using the Waves network.

  • A sure way of operating anonymously when investing or sending funds
If you are using a conventional bank, the chances are that a lot of people know your investment and transaction details. The cashiers, bank management, and even local administration have or can access the details easily. However, Waves is an anonymous network that allows users to invest and send funds anonymously. Once you are on the network, no one can know you exist there. Even the nodes that confirm transactions can only follow back to check the account balances and previous transactions but not the owner.
  • Waves allow users to invest without worrying about third-party seizures
Today, getting involved in a court battle is very easy. You do not even need to commit an offense. From colleagues at work to social media, a case can easily get you right at the doorstep. In such a situation, the first action by courts is to freeze the bank account until the cases are heard and determined. Other third parties that can access and affect your bank savings include central banks, bank administrations, and even political authorities depending on your country.
However, joining Waves allows you to operate free from these third-party seizures. As an anonymous network, no one will ever know about your investment or transaction details. Even if you have a court case, it is impossible to get frozen because the Waves network does not take orders from third parties.
  • It provides users with direct gateways for using fiat currencies
While other cryptocurrencies have been struggling with how to relate crypto assets with fiats, Waves has made it possible through fiat gateways. This means that if you have cash in a bank, it is possible to use it to buy WAVES or even cash the tokens. It is a great way to have the best of both sides.
  • It is one of the cheapest ways of sending cash both locally and internationally
When cryptocurrencies entered the market, the core promise was to lower the transaction costs. Because Waves is a decentralized network, users are able to bypass centralized and profit-seeking organizations such as banks. Waves is one of the cheapest methods of sending cash in the market today.
  • People have the opportunity to join and own the network
If you are sending cash through a bank or borrow some cash from it, the main objective is getting the goal realized. After achieving the main goal, many people dissociate with banks because they do not own it. It is true; the bank belongs to a different party that wants to optimize benefits from users. However, it is different when it comes to Waves.
All users on the Waves network are considered owners. They do not simply send cash using then network, but are part of the decision-making network. When issues requiring voting come-up in the network, you will be required to participate.
  • The cryptocurrency provides users with total control of their operations
The standard setting of a banking system comes with a lot of limitations. It is impossible to send or make transactions at night, on the weekends, and public holidays. Some banks also require users to give prior notifications when they want to move large sums. However, Waves helps to remove all these restrictions. As far as you are on the network, got the right target public address, you can send value any time of the day or night. Besides, you can send any quantity of WAVES as far as you have them in the wallet.
  • It is one of the cryptocurrencies with huge potential for growth
Between launching and early 2018, Waves has demonstrated huge potential for growth. Many people see it as the next big thing that will give highest possible ROI.

What Are the Risks of Waves?

The same way that Waves come with many advantages, it also have a number of risks. Most people joining the network have to appreciate the huge risk of losing the tokens. Whether it is at the Waves network level or the exchanges, the danger of loss is always a step away. Here are other risks that you should be aware of when working in the Waves network.

  • The risk of getting hacked by cybercriminals at different levels.
The reports of cryptocurrencies and crypto exchanges getting hacked and thousands of tokens getting lost have become very common. Now, you cannot sit pretty on the Waves network because of the risk of getting hacked and the tokens stolen. It is because of this risk that many people have been indicating that you should only invest what you can afford to lose.
  • The threat of getting involved with criminals in the network.
While anonymity in cryptocurrencies is considered a huge pro, it comes with some serious cons. Because users can hide in the enhanced anonymity, it is very easy to get involved with criminals. For example, if a trader packages his counterfeit products and insists to be paid in WAVES, you will only realize when it is too late. Since the payment will have been processed, you will get the wrong item and support a criminal activity without knowing. Note that transactions are not reversible in cryptocurrencies.
  • The danger of sending funds to the wrong address.
Like other cryptocurrencies, the danger of sending WAVES to the wrong address always looms. The public address is usually a lengthy code that makes it difficult to remember and use. The best way to beat this risk is triple checking the address before sending funds.
  • High volatility.
Every time that something bad or good happens in the finance or crypto niche, WAVES and other crypto assets respond with an immediate shift in value. They are highly volatile. For example, Waves price in the markets shifted downwards after China banned ICOs in its market. This volatility means that you can never be sure of the trend Waves will follow.
  • The looming regulations.
The looming crypto regulations are a huge threat to Wave's price and existence. Because authorities have indicated the threats associated with the fast-growing cryptocurrencies, most of them are committed to passing very harsh regulations. If this happens, the chances are that WAVES value will plummet and its existence could also be at risk.

What Happens if Waves Gets Lost?

It is becoming very common to hear people say that they have lost crypto coins. It is one of the main risks that are only steps away from striking when working in networks such as Waves. However, have you ever thought of what happens when the crypto coins such as WAVES get lost?

One thing you need to appreciate is that WAVES tokens NEVER leave the native network. What this implies is that even if you have lost the coins they are still in the network. What happens after a loss depends on the nature of loss.

  • Losing WAVES by sending to the wrong address: The WAVES lost through sending to the wrong address are still in the network but under the new address. They have a new owner.
  • Loss through hacking: If the Waves network, your wallet, or exchange is hacked and WAVES are stolen, the coins are still in the network but under different identities.
  • Forgetting the private keys: The private keys is your gateway to the coins you own in the network. If you forget or lose the keys, it means that the coins have been lost. In this case, the coins are still in the network but in a dormant state.
  • Damage to the wallet: Getting the wallet damaged or lost means that the WAVES coins are still in the network under your name but in a dormant state.

Waves Regulation

When cryptocurrencies entered the market in 2009, there was huge discomfort in the government quarters. Most administrations felt that the cryptos were out to cripple their operations. Some of them such as China opted to use direct orders to restrict the application of cryptocurrencies. The administration started with banning ICO (Initial Coin Offering) and freezing accounts of exchanges that facilitate local crypto trading.

While most administrations are fast to outline the dangers that come with cryptocurrencies such as Waves, none of them has passed a legal framework. From the United States to Japan, none of the states has a clear guideline on how to cryptos should operate in their jurisdictions. However, it has emerged that passing cryptocurrency regulations is not as easy as many would want them to be. Here are some of the things that make drawing and implementing crypto related laws very difficult.

  • The blockchain technology is molting at a very fast rate.
  • Most of the governments are caught off guard by new cryptocurrencies. This means that they are forced to play catch up.
  • The blockchain technology has demonstrated the potential to address major problems facing most administrations such as Big Data. This means that no administration wants to limit the progress of solutions to issues facing it.
  • Because of their unique design that allows easy and direct sourcing of funds, it means that governments can also utilize things such as ICOs to source for funds to their projects.
  • The crypto networks are not owned by any single entity. Because the Waves and other crypto networks are owned by nodes and users spread all over the world, passing local regulations can only produce very limited impacts.

Because no administration is sitting pretty concerning cryptocurrencies, people joining the crypto networks such as Waves should be prepared for regulations sooner or later. Whether you target buying Waves, mining the network, or simply holding the native tokens, it is important to get prepared for the aftershocks that will come with these regulations.

Is Waves Legal?

Waves is legal in most countries across the globe because no jurisdiction has passed a legal framework. Since cryptocurrencies entered the market, many countries have demonstrated the ardor to pass guiding frameworks. Most of them have made huge strides but still find it difficult to actualize the crypto laws.

Notably, the harsh approach that most jurisdictions took when cryptocurrencies entered the market appears to be subsiding slowly. By early 2018, some nations that were severe critiques of cryptocurrencies started changing the tune. To understand the legal status of cryptocurrencies, here is a closer look at the legal status of Waves in different jurisdictions.

1)The United States.

The United States was fast to note the dangers associated with cryptocurrencies. However, the administration appears in no hurry to pass any regulation. For about ten years after 2009, the US administration was quiet and only observed as cryptocurrencies grew from one generation to another.
The United States federal administration only provided a clarification to the cryptocurrency users to help them make appropriate tax deductions. The Commodities Futures Trading Commission (CTFC) clarified that cryptocurrencies such as Waves were commodities. This means that any revenue earned from trading them is taxable.
Early in 2018, the Treasury clarified that the US was targeting a global approach in regulating cryptocurrencies. This means that the administration appreciated that a local approach would be less effective if the cryptocurrencies are allowed to blossom in other states. The United States government is particularly focused on taking a common approach with South Korea, China, and Japan to prevent cryptocurrencies such as waves becoming avenues for tax evasion.

2) Russia.

At first, Russia indicated that it was not interested in regulating cryptocurrencies. The jurisdiction was fast to the point that crypto assets were not legal tenders and would not be controlled using legal frameworks. However, the fast growth of cryptocurrencies and emerging potential to tilt the conventional investment niche has irked the government and made it shift the earlier stance.
Early in 2018, the finance ministry indicated that the law was unclear of whether traders who accepted payments in cryptocurrencies were committing offenses or not. The ministry and the central bank acted fast and indicated that a cryptocurrency regulation would be ready by February. After releasing the Digital Finance Assets Draft bill, ' it became clear that Russia intends to regulate how mining, trading, and even running ICOs is done in Russia. However, even before the draft bill becomes law, it has started attracting a lot of criticism from the cryptocurrency community and country’s opposition.

3) The European Union.

The EU is one jurisdiction that appears to be playing catch-up when it comes to cryptocurrency regulations. Because it does not have a crypto regulation, it means that Waves and other cryptos are legal. Notably, different arms of the EU appear to be reading from different scripts when it comes to cryptocurrencies.
The EU Central Bank was quick to caution the citizens in the EU member states against using cryptocurrencies. It pointed that they were extremely risky and could end up being unrealistic bubbles. However, the EU parliament indicated that blockchain technologies have huge benefits that should not be wished away. The parliament is even contemplating to develop its own blockchain network before passing a regulation.

4) Switzerland

Even as other jurisdictions feel threatened by the fast progress of cryptocurrencies, Switzerland is looking for every avenue to accelerate their progress. It is very interesting. Though the country is known to go against the grain even when the neighboring states take a position, it came as a surprise to see the administration committing even national resources to attract cryptos.
The country’s finance minister, Johann Schneider-Ammann indicated that they would commit resources and pass legal framework that will make the jurisdiction a crypto nation. This approach has seen many crypto foundations set their operational basis in the country.

Waves and Taxes

While the topic of cryptocurrency regulation is indeed complex, things get murkier and confusing when it comes to taxes. As one of the fastest growing cryptocurrencies, Waves has been attracting a lot of supporters across the globe. However, it has become clear that many of them are not simply interested in investing. Rather, they want to hide behind the cryptocurrency’s anonymity to operate without paying taxes.

A lot of people believe that because the transactions in Waves and other cryptocurrencies are anonymous, they are shielded from tax authorities. But tax and financial experts have a different view altogether. Because Waves is a public ledger, it means that all transactions are carefully preserved. As the technology continues to develop, the chances are that it will become easier to unmask all users in the network. This means that every transaction you did and failed to make tax deductions will be uncovered and possible lawsuits instituted against you. However, this does not need to be the case.

Tax experts insist that you can operate in the Waves network, enjoy all the associated benefits, and remain compliant to tax laws. How is this possible? Here are some useful tips you can use to remain tax compliant when using Waves.

  • Ensure that revenue from Waves is considered taxable income.
  • For traders accepting payment in WAVES, it is important to ensure that transactions are captured appropriately on the company ledger.
  • Make sure that the value of WAVES and corresponding fiat currencies such as US dollar are noted with precision. This will help to eliminate the chances of getting overtaxed or providing clarification if the need arises.
  • Do not hesitate to seek the assistance of tax experts if you want to rectify books of account especially on the period you never complied with tax laws. It is better to do it on your own as opposed to waiting for the law to catch-up.

Does Waves Have a Consumer Protection?

Waves Does not have consumer protection. The underlying principle of most cryptocurrencies is decentralizing everything including ownership. This means that once the founders are through with creating the core code and release it, they give up on ownership. Therefore, when something happens in the network, or serious changes are needed, the nodes and users spread in the network have to be consulted. They must vote.

If you are joining the Waves network, it is important to be cognizant of the fact that it does not have consumer protection and take every caution. Note that things get worse because you cannot complain even to a court of law in the absence of a legal framework. To be sure of operating securely in the Waves network, here are a number of things you can do.

  • Ensure to always triple check the public address when sending funds in the network.
  • Try only to use one computer for all Waves transactions. In many cases, experts recommend that you designate one computer for Waves transactions only.
  • Select the trading exchanges with great care. You should particularly pick only the exchanges that have effective systems to prevent attacks.
  • Make sure to maintain a backup of your Waves wallet and store the private and recovery seed phrase carefully and away from the main computer.
  • Keep the Waves client updated and avoid visiting risky sites.
  • Never share the private keys.

Illegal Activities with Waves

Cryptocurrencies are considered the best platforms by criminals because they provide them with cover from authorities and managements. From Ponzi schemes to selling faulty and counterfeit products, crypto networks are very attractive. Despite these realities, no illegal activity has ever been reported in the Waves network.

To avoid falling victim to illegal activities, it is important to be extra careful on the projects you engage. For example, if you need to invest in a new token being offered through an ICO, make sure to carry a comprehensive review of the developers, partners, and the main objectives. You should also review traders selling products and insisting on getting paid in WAVES.

Is Waves Secure?

When reports of cryptocurrency attacks are reported, they send shock waves through the entire industry. For example, Bitcoin Gold was attacked when it was only a few days old. However, the Waves development team has been working extra hard in ensuring that the network and its users are secure. This is the reason that no successful attack has ever been reported in the network. Here are some of the things used to make the network secure.

  • The Waves development team has been working on regular updates to keep the network secure.
  • The development team members are experts in cryptocurrencies and go to any length to make it secure. They are always working on new features to make the network better and more secure.
  • Waves use Proof-of-Stake that only allows those with a high stake (full nodes) in the network to confirm transactions. This means that the chances of them colluding to harm the network are very slim.
  • After the exploits at Slockit DAO and subsequent Child Dao attack, the development team at Waves promised to make the smart contracts non-Turing complete.
Waves team leaders

Is Waves Anonymous?

Many cryptocurrencies have won their large communities by promising them high levels of anonymity. It is the same thing with Waves. The cryptocurrency uses advanced encryption to ensure that no one can easily access your details. Indeed, even miners spread in the network can only access the details of a public address to confirm transactions without knowing the actual users.

If you use other cryptocurrencies such as Bitcoin and Ethereum among others, you will be required to provide personal details at the exchange level. These can be used to identify you at different levels of operations. However, Waves has solved this problem by creating a decentralized exchange (DEX) that does not provide your details to third parties. It is the best way to operate away from centralized organizations.

Has Waves Ever Been Hacked?

One of the recommended methods of assessing the security of a cryptocurrency is checking whether it has a hacking history. If a cryptocurrency network has a hacking history, you have a cause to be worried. It is important to establish whether the cause of successful hacking was addressed or the risk of another hacking still looms.

Even though the danger of hacking looms above every cryptocurrency, no successful hacking has been reported in the Waves system. This is a demonstration of the Waves lead team's commitment to making the cryptocurrency one of the best in the market. It is also one of the main reasons making the cryptocurrency very popular, helping to drive up its value, and enhancing the trust of the people.

How Can I Restore Waves?

Every time that people come out crying that they have lost Waves or other coins, the aim is recovering them. Whether the Waves coins can be restored or not is entirely dependent on the channel of loss and user’s preparedness.

  • WAVES lost through forgetting private keys: If you forgot the private keys, the Waves tokens in the network would still be under your name. To restore them, you will need to generate the private keys using the seed phrase that was generated the first time you opened the wallet.
  • WAVES coins lost through damage to the digital wallet: Many people often lose their wallets through formatting their machines, loss of mobile phones, or damage by malicious odes. You can restore WAVES by reinstalling the backup wallet or installing a new one and reconciling with the network using the private keys.
  • Loss through hacking or sending to the wrong address: If you lost WAVES through hacking or sending to the wrong address, the tokens are lost forever. They have a new owner and cannot be restored.

The secret to a successful recovery of WAVES is getting prepared before the loss strikes. Even if you are very careful with the private keys, a loss can still occur. Therefore, you should always maintain a backup, store the private keys in a different location, and avoid visiting risky websites.

Why Do People Trust Waves?

A large number of cryptocurrencies in the market today has opened fierce competition. Even top networks such as Bitcoin and Litecoin have not been spared as new cryptocurrencies come-up with new solutions. It is no longer about sending cash alone. Rather, it is winning trust and adoption on a larger scale. Here are some of the key reasons why people have developed so much trust in Waves.

  • The Waves network uses Proof-of-Stake model that has helped to eliminate the danger of split or hard forks.
  • The Waves network allows users to lease their stake and earn good returns without sending them.
  • It is a unique platform for offering ICOs for new enterprises and established businesses.
  • The cryptocurrency has elicited interest from top corporates that now want to get a stake in it.
  • Waves has its decentralized exchange. This means that users can trade without having to follow the cumbersome and lengthy procedures of confirming trading accounts with personal details.

Note that though many people see Waves as the cryptocurrency of the future, the trust they have in it depend on the ability to remain at the top of the industry. The development team must work extra hard to avoid attacks, win more partnerships, and keep the value on an upward trend.

History of Waves

The history of waves can be traced back to early 2016 when most of the members were working on the NXT (another cryptocurrency project). The members were dissatisfied with the way the initial coin distribution was done at NXT, the adoption of rotational development teams, and highly controversial development decisions. This prompted them to look for an alternative network.

Sasha Ivanov opted to form a completely new code, new cryptocurrency as opposed to forking NXT. All the team members who were dissatisfied at NXT jumped to Waves. Some of these members included Maxim Pertsovskiy, Mariya Borovikova, and Igor Pugachevsky.

On April of 2016, Waves held its ICO that raised a total of $16 million. This has made it one of the most successful ICOs by then. The main focus of Waves was addressing the issues reported in the larger crypto industry including speed, scalability, and user experience.

When Waves started trading in the markets, its value was about one USD. However, it grew over time to reach $16 on December of 2017 and settle at around $7 in the February of 2018.

In May of 2017, Waves entered into a partnership with Microsoft. Microsoft agreed to provide Waves on its Azure. This allowed Waves to deploy TestNet nodes using the Microsoft cloud services.

In July of 2017, Waves announced its partnership with Deloitte. The main aim of the partnership was helping to clarify and shape global blockchain crowdfunding regulation. The partnership also targets establishing a clear framework for businesses to run within the Waves network.

Early in 2018, Waves has targeted to start implementing Smart contracts. Note that unlike the Smart contracts under Ethereum, the model to be used at Waves will non-Turing complete. This will help to reduce the danger of attacks such as the Child DAO attack that resulted to the splitting of the Ethereum network.

Who Created Waves?

Waves was created by Sasha Ivanov in early 2016. Sasha is a physicist and has been deeply involved with payment models development. Before his work at NXT and designing Waves, he had launched the pioneer instant cryptocurrency exchange referred as Coinomat.

Waves Videos and Tutorials

Wavesplatform - Ride on Waves

Waves Platform with Founder Sasha Ivanov

Waves Overview

See Also