Is it worth buying Internet Computer Cryptocurrency (ICP)

What is this

ICP is the largest development in the field of blockchain technologies, which in the future may take third place after Bitcoin and Ethereum. Its founder is Dominic Williams. He created a unique blockchain with no bandwidth restrictions. It scales calculations, smart contract information and runs them at Internet speed. Its functions also include data processing and storage, as well as providing developers with a powerful software development environment.

Using Internet Computer, you can create websites, company IT systems, open Internet services, NFTs and more. In the future, blockchain should compete with organizations such as Amazon, Facebook and Google, with the subsequent destruction of the monopoly of large IT enterprises.

The project was created in 2016 and immediately attracted the interest of investors in the cryptocurrency community. Overall, the ICO managed to attract over $120 million in investment from large companies and Ethereum supporters. At the same time, on December 18, 2020, the Internet Computer network was launched, and on May 10, 2021, the cryptocurrency became available to everyone on the exchange.

Developers and functionality

Crypto.com team
So, the owner of the token is the cryptocurrency startup Crypto.com. The company is registered in Hong Kong, and according to various sources, began work either in 2016 or 2017. The original name was Monaco. In 2018, the company bought the domain Crypto.com and at the same time decided to rebrand. Now a little more about who Crypto.com is and why they needed a second token.

Everything for cryptocurrency, everything for human rights

If you go to the official website of the platform, then in the “About Us” section you can find very beautiful words:

The motto “cryptocurrency in every wallet” is even registered as a trademark

“Cryptocurrency in every wallet!” - almost like a slogan for revolution in a dark cyberpunk digital future. But if you want to use the Crypto.com wallet, you will see an even more iconic passage:

Managing your money, data and identity is a fundamental human right.
High values, boundless ambitions - everything as befits a decent international corporation that seeks to conquer our difficult world. In practice, this is embodied in a whole set of products that are designed to connect the digital and real worlds, and, in addition, simplify the lives of crypto hoddlers and traders. Currently available on Crypto.com:

• Payment cards with replenishment through cryptocurrencies and cashback;
• Native Exchange;
• Decentralized wallet;
• Staking;
• Lending secured by cryptocurrency.

The platform also runs a very cool payment service, the future of which the guys are betting on. This is something like GooglePay for e-commerce, only in a cryptocurrency version. In general, sellers can integrate Crypto.com and receive payments in cryptocurrency, or rather, buyers will pay with cryptocurrency, and for the seller the platform will quickly convert all this into fiat.

It is not yet clear how this will work in the offline version, perhaps through an application and NFC.

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Moreover, the platform processes both cryptocurrency and fiat transactions with a commission of 0% and 0.5%, respectively, which is much more profitable than that of a bank.

In general, by registering a wallet on Crypto.com, you will be able to buy various things for cryptocurrency in stores around the world and you will not need to use an exchanger for this. By the way, you can import your account from a cold storage wallet into the platform’s native wallet (via a secret key phrase) to make it more convenient to manage your assets.

Role in the ecosystem

Let's return to the CRO token - in the already mentioned WhitePaper its functions are described as follows:

Features of Crypto.com Coin

If you analyze the site, you can find Crypto.com Coin in several sections at once. The coin can be:

• Stake with a rate of up to 18% per annum (for comparison, stablecoins are up to 12%);
• Leave as collateral to obtain a loan in dollars;
• Pay with the very same sellers who integrated Crypto.com payments;
• Use to reduce commissions on the native exchange.

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However, apparently, CRO was developed specifically for the launch of a native blockchain - it is in this token that validators should receive a commission and transaction initiators should pay a commission. That is, CRO will perform a function similar to “gas” in Ethereum - in order to carry out operations, you need to have several (thousands) of native tokens in stock.

If you multiply this by the number of services, the number of users and the multi-currency nature of Crypto.com, it is not surprising that the demand for the coin is constantly growing.

However, despite its utilitarian nature, CRO is listed on many exchanges, it can be traded or simply circulated, given the limited issue.

What is DFINTY

The Internet Computer platform was created by the DFINTY Foundation. It is a non-profit organization headquartered in Zurich. Its structure employs the best specialists in the cryptographic field, experts in various programming languages. The most famous employees include:

• Jan Kamenisch , Ph.D., holds the position of Vice President for Research;
• Andreas Rossberg - principal researcher and engineer, former head of work on the Google Chrome V8 engine;
• Ben Lynn is a senior researcher/engineer who worked at Google and specializes in cryptography.

The DFINTY Foundation is constantly evolving. He already has more than 200 patents and the best employees on staff, which indicates the great potential of the project. The team also includes Shigero Mitsunari, Derek Chang, Norton Wang, Timo Hanke and others.

DFINTY Foundation

What is unique?

The goal of creating the Internet Computer is to expand the functionality of the global Internet, which will be used as a single platform. The implementation of the system allows us to take a fresh look at the capabilities of the World Wide Web. It is based on the technology of so-called “chain keys”, which operates on the basis of advanced technologies. It includes:

• consensus;
• distributed key creation;
• NNS network system;
• user identification, etc.

Chained key technology consists of a group of crypto protocols that are managed by Internet nodes. This is a huge plus, because every device (be it a smartphone or smart watch) can participate in the verification. This feature is not available for simple blockchain technologies.

The introduction of “chain keys” allows the creation of new nodes when forming other subnets and a smooth update of the Internet protocol. This allows you to quickly fix errors and add new options. DFINITY specialists managed to create a new key exchange protocol. To do this, each of the “signatories” needs to transmit a message to the newly signed users.

The security of the exchange is ensured thanks to modern security methods, including encryption and zero-knowledge proofs. The transmission method itself is not interactive, therefore it is optimal for an asynchronous environment. The subnet has a single public key for its entire lifetime.

DFINITY specialists managed to create a new key exchange protocol

Differences from other cryptocurrencies

The operating principle is based on Etherium technology, but has many differences from it. To achieve consensus, the Threshold Relay mechanism is used. It uses the signatures of randomly selected nodes.

Comparison with the main tokens is shown in the table.

How does the consensus mechanism work?

In more detail, the consensus mechanism has a 4-level structure. It includes:

1. Identity, registration. The system supports open membership with the possibility of identification through a deposit.
2. Decentralized anchor. This is a VRF function created by all registered clients.
3. Blockchain, which is randomly controlled using a ranking mechanism. The so-called PSP protocol for time slots is used here.
4. A decentralized notary who places tags guarantees integrity and is responsible for the speed of transactions. Completion of the operation signifies system-wide consensus that the operation is irreversible. The chain can only include blocks that have passed notary verification.

DFINITY consensus levels can be represented in a number of categories:

1. Degree of identity.
2. Blockchain level.
3. Observation.
4. Notary.
5. Protocol consistency.
6. External participants.
7. Observation, etc.

Each level discussed above has a number of features that ensure overall network security.

What is a crypto wallet and how to store tokens

Crypto wallets are used to store tokens. In one of the previous posts we already talked about how they work and how to choose the safest one. In a nutshell: hot and warm wallets are software. They require an Internet connection and allow you to quickly use funds for trading, but precisely because they are connected to the Internet, they are more vulnerable to hacking. To increase their security, be sure to enable two-factor authentication. This will make it more difficult for criminals to break into your vault without your knowledge, as happened with one investor who lost more than $70,000 due to a wallet hack. And it’s better if this two-factor authentication is not via SMS, but, say, using an application: this will eliminate the risk of SIM card cloning.

More secure cold wallets are a separate device. They usually look like a flash drive or keychain, and the most popular models cost from $50 to $200.

Transaction exchanges provide users with hot wallets, but it is not worth keeping all your funds on them - trading platforms are constantly under the radar of cyber groups. It is wise to keep only the amount on your balance sheet that you plan to work with in the near future, and it is safest to send the remaining assets to a cold wallet.

And one more thing - save all passwords and codes that you see when creating and using a wallet. For your own safety, the developers of many wallets show them only once. You can even write them down on paper if you're sure you won't lose it or the kids won't draw a couple of masterpieces over it, but it's better to write them down in a secure storage area, like a password manager. Remember: if you forget such a key, you will not be able to restore access to your money. You don’t want to repeat the fate of the “Silicon Valley” hero who accidentally threw away the flash drive with the key to a super-profitable wallet?

Price, characteristics of the ICP cryptocurrency.

In the first days of its appearance, the cost of ICP jumped from 0 to 640 dollars, after which the rate sank, but continues to remain at a high level. Thus, at the time of writing the review, the price of the cryptocurrency is at $202 per coin. The daily trading volume is more than $44 million, and the market capitalization of ICP is over $24 billion, which allowed the coin to break into the TOP 10 best cryptocurrencies in this parameter. You can buy a coin on many exchange platforms, including Binance, Exmo, Huobi, OKEx and others.

Summary

• Study the market before entering the exchange, and do not get carried away with risky transactions at the start.
• Diversify your risks - invest in several cryptocurrencies to hedge against sudden drops in price.
• Carefully research each altcoin you decide to invest in to avoid pyramid schemes.
• Keep the bulk of your crypto capital in an offline wallet and keep its password in a safe place.
• Don't fall for promises of free cheese, even from famous personalities: their accounts could be hacked, and it's almost certainly a hoax.
• Protect your Internet connection and use an antivirus.

Why do we need ICPs?

When considering a new cryptocurrency, a question arises about the functionality of the ICP. The purpose of the token includes:

1. Help with network management. Tokens can be blocked to create neurons that take part in the control process. As a result, they receive economic rewards.
2. User rewards. The network is creating a new ICP to incentivize and reward members. All users who participate in management, vote or carry out other activities can count on the reward.
3. Creating cycles for calculations. ICP is used to store values ​​that are later converted into cycles at different rates.

The cycles mentioned above are used as "fuel". They are also tied to the SDR, which is a logical unit of currency.

Buyers of tokens can be ordinary investors, developers, as well as users who want to take part in management and receive rewards for voting.

Nine best cryptocurrencies on the market. What altcoins can you make money on?

In addition to Bitcoin, the digital money market has several options for investing funds in order to earn money in the long term

How to determine a project worth investing in?

There are a couple of simple indicators that can give an idea of ​​the seriousness and potential of each cryptocurrency:

• Its market capitalization , that is, the position it is in and the share of the coin in the total market value of cryptocurrencies;
• Community of followers and developers. When a cryptocurrency has a large and developed community, this often indicates good prospects for the project;
• News agenda : successful projects will interact with the media, and thus increase the credibility of their cryptocurrency;
• Expert analysis of leading economic portals dedicated to cryptocurrency.

Top 5 cryptocurrencies that deserve to be in every crypto investor's portfolio

No long-term bull market can have a single leader. There are periodic changes where the leader makes adjustments and others take the lead. This is exactly the kind of rotation currently occurring in the cryptocurrency markets, with ETH and XRP leading the way while BTC slows down.

Ethereum (ETH)

Market capitalization : $68 million

Technology : ETH is the cryptocurrency that powers Ethereum. It is a decentralized software platform that allows you to create and run smart contracts and decentralized applications (DApps). Ethereum is not just a platform, but also a Turing-complete programming language.

News analysis:

The Ethereum 2.0 deposit contract currently holds 739,520 ETH ($424 million) with the required 524,288 ETH. This exceeds the threshold required to activate the Ethereum 2.0 update.

Ethereum creator Vitalik Buterin said on his Twitter account that the system for launching ETH 2.0 has crossed the 50% mark. After this, the price of ETH rose to $600.

The value of BTC locked in Ethereum has exceeded $3 billion. The current Bitcoin bull cycle has contributed to the increase in the number of tokenized BTC in Ethereum. After hitting an all-time high of 175K BTC last week, the number of BTC locked has dropped to 170K, according to DeFi Pulse.

Technical analysis:

On November 20, 2022, ETH rose to $489. On November 22, an attempt was made to stop the growth, but the bulls quickly neutralized this threat. Both moving averages were sloping upward, indicating that the bulls were in complete control of the market.

Photo: TradingView

Ethereum has formed a preliminary rising wedge formation, according to analysis by TradingView analyst Vince Prince. According to the expert, the market is now ambiguous and both sharp drops and rapid ups are possible. Stabilization will most likely occur when ETH moves into the reserve cluster, marked in blue on the chart, where several supporting levels are combined. Ethereum has good potential for a rebound within this cluster and the formation of upward momentum from there, Prince predicted.

Growth prospect:

If you compare the news agenda and technical analysis, you can come to a common denominator: in the long term, ETH is the most promising cryptocurrency. The only negative is the high cost of commissions on the network, but this problem should be solved in ETH 2.0.

Ripple (XRP)

Market capitalization: $30 billion

Technology: XRP is a centralized cryptocurrency created by Ripple Labs as a solution to enable banks and financial institutions to leverage the power of blockchain technology to improve cross-border transaction systems. XRP runs on the RippleNet digital payments platform on top of a distributed ledger database called the XRP Ledger.

News agenda:

• Ripple is looking for a director to work with central banks to create a digital currency;
• Ripple's new USPTO filing: PayString trademark;
• Over the course of a day, the XRP token rose in price by 60% and reached its highest level since May 2018.

Technical analysis:

Over the past few days, XRP has proven to be one of the best performing altcoins among the largest altcoins by capitalization. There was parabolic growth, as the bulls completely control the price movement of the token, explained the analyst under the nickname CryptoNekoZ. He suggests that the coin could cross the $0.7 threshold and continue to rise in price in the long term.

Growth Outlook: Over the past month, the price of XRP has jumped 91% as the digital asset caught “momentum.” Catalysts for the strengthening of XRP are the increase in the number of unique addresses, the buyback of tokens by Ripple and the possible launch of a new product.

Chainlink (LINK)

Market capitalization: $6 billion

Technology: Chainlink is a decentralized network that aims to connect smart contracts with real-world data.

Technical analysis:

Vince Prince points out that LINK was trading within an ascending channel formation, where it formed an important triangle. The coin has now fully formed with a breakout above the border and closed above the volatile green candle.

Photo: TradingView

LINK has already retreated back to the upper limit once, which it is now testing. The fact that LINK broke above the border gave the currency a good bullish momentum, the analyst claims. This structure provides good potential for further movement and makes LINK one of the most bullish cryptocurrencies in the long term.

Growth prospects:

From the point of view of fundamental analysis, LINK is currently exposed to the wave of the bull market, but in the short term it can expect a fall: the news agenda is silent, and there are no updated reports on the implementation of the project on the platforms. However, the trend points to further growth. LINK's controversial position is the basis for short-term speculation on the wave of rising asset values.

Litecoin

Market capitalization: $5 billion

Technology: Litecoin is based on the Bitcoin protocol, but differs in the hashing algorithm used, the hard limit, and the block transaction time

News analysis:

• Binance will add options contracts for Litecoin

Technical analysis:

According to TradingView analyst Vince Prince, Litecoin still has strong resistance levels on the two-hour chart, so the price may still decline. At the same time, Litecoin continues to trade within an ascending channel formation. In addition, Litecoin has an important descending resistance line, indicated in black on the chart. This may indicate a future change in the trend to a downward one.

Photo: TradingView

Vince Prince believes that the final confirmation of the bearish decline will occur when LTC moves below the 35 EMA, marked in green on the chart, and the 55 EMA, marked in red, closes below the 35 EMA. This will be the final confirmation of a further downward movement and an increase in the bearish market share until support is found that can reverse this trend again, the analyst is confident.

Growth prospects:

At a global level, LTC is still in a more bullish state, so a decline in price could be an opportunity for a successful investment. One of the reasons is the addition of options contracts for Litecoin by the Binance crypto exchange.

Bitcoin Cash (BCH)

Market capitalization: $6 billion

Technology: Bitcoin Cash is a peer-to-peer system designed to be a trusted global money with fast payments, micro-fees, high levels of privacy and high transaction capacity.

News analysis:

• Bitcoin Cash Node Wins Hard Fork;
• Analytics on Bitcoin Cash from RBC-Crypto

Technical analysis:

On November 21, Bitcoin Cash broke through resistance at $280. Cointelegraph analyst Rakesh Upadhyay explained that on November 22, the bears were unable to hold lower levels. This suggests that bulls are using price pullbacks to make purchases. Both moving averages are sloping upward, and the RSI is in positive territory, indicating that buyers are in control of the market.

Photo: TradingView

Growth prospects:

Bitcoin Cash completely contrasts the news agenda with technical analysis. The coin has growth potential, but divisions within the community are slowing down the process. BCH can be considered a long-term investment because many investors believe that it is subject to the “BTC effect”, that is, it rises after the first cryptocurrency, but with a lagged effect.

Top 4 Forgotten Tokens with Promising Growth Trends

Stellar (XLM)

Market capitalization: $3 billion

Technology: Stellar is a decentralized, open-source platform that connects banks, payment systems and people. This platform was designed to facilitate cross-border transactions to make them faster, cheaper and safer.

News analysis:

• The Center Consortium has announced that USD Coin (USDC) will soon be available on the Stellar blockchain;
• The update to protocol 15 has been completed.

Technical analysis:

An Anoinvest analyst believes that XLM is gaining good volumes and can become a profitable solution for playing the market. The expert advises to pay attention to BTC/XML trading, rather than standardized fiat or USDT trades, because the “trend behavior” of XLM is very similar to BTC.

Growth prospects:

XML tends to follow XRP in growth, so it may be worth considering adding to your investment portfolio in the near term. After Stellar executive Justin Rice announced that Stellar had upgraded its protocol from version 13 to version 15 on November 23, the price of XLM increased by 68%.

Cardano

Market capitalization: $5 billion.

Technology : Cardano is a Proof-of-Stake blockchain platform that is used primarily by agricultural companies to track fresh produce. It also allows data to be stored in a tamper-proof manner and allows retailers to stop counterfeit goods.

News analysis:

• Cardano creator Charles Hoskinson announced plans to attract 1 billion users;
• Updated information on financial contracts.

Technical analysis:

Vince Pierce's chart shows Cardano approaching a strong rising resistance line, marked in red.

Photo: TradingView

The value of the cryptocurrency is likely to correct before continuing to rise, the expert suggests. These pullbacks will continue until a support zone is found. In this case, it will likely be within the reserve cluster, marked in blue on the graph. It is important that the ADA rate does not fall below the cluster, because this can lead to a trend change and the beginning of a downward movement.

Growth prospects:

Regardless of the optimistic outlook shown by the news and ADA metrics, according to technical analysis of the cryptocurrency price chart, a correction may begin in the near future. From the point of view of long-term investing, Cardano can be considered, but it is not a fact that it is worth opening orders during the current rally.

EOS

Market capitalization: $3 billion

Technology: EOS is a platform that allows developers to create decentralized applications. The goal of the project is to make it as easy as possible for programmers to master blockchain technology and make the network easier to use than its competitors.

News analysis:

• Google Cloud Becomes a Blockchain Producer by Joining the EOS Blockchain Community
• Spielworks has created a cryptocurrency rewards and loyalty platform on EOSIO

Technical analysis:

TradingView analyst Marginbuu believes that EOS is currently breaking through an important resistance. As soon as its price rises above $4, a parabolic rise to $10+ will follow.

Photo: TradingView

Growth prospects:

The EOS team actively supports their product. Thanks to the use of the DPoS consensus algorithm, the scalability of the project is at a high level. Using SegWit, TaPoS, DPoS, EOS aims to optimize all resources on the network and has a chance to capture a larger market share. With the further development of EOS, the value of the asset has the opportunity to continue to grow.

DASH

Market capitalization: $1 billion

Technology: DASH is an open-source blockchain and cryptocurrency focused on providing a fast and low-cost global network of decentralized payments.

News analysis:

• US Attorney General William Barr announced the release of a document entitled “Cryptocurrency: A Framework for Enforcement.” The publication, produced by the Attorney General's Cyber-Digital Task Force, discusses the framework for combating "emerging threats and enforcement challenges associated with the growing adoption and use of cryptocurrency";
• Dash representatives claim that Shapeshift incorrectly categorizes anonymous cryptocurrencies.

Technical analysis:

On a fundamental level, DASH is interesting because it is one of the oldest cryptocurrencies. It was launched in 2014. The token has experienced two protracted bear markets. This is important because each additional period of survival implies a longer remaining life expectancy.

Dash returned to its original 2015 trendline for the third time this year. This time spending several weeks building support level support.

Photo: TradingView

Growth prospects:

DASH, unlike other projects, is one of the oldest cryptocurrencies that is still supported today. The news background shows that regulators are constantly trying to “put a spoke in the wheels” of the project due to its anonymity, but the developers continue to follow the plan. If at some point cryptocurrencies are introduced into everyday use on an ongoing basis, Dash has every chance of becoming one of the first.

— Bitcoin has fallen sharply in price. Altcoins suffered even more

— “Tesla 2021.” Businessmen predicted a multiple increase in the price of Bitcoin

— In the fall, Russians’ interest in Bitcoin doubled

You will find more news about cryptocurrencies in our telegram channel RBC-Crypto.

Prospects

The main issue is the prospects for the development of Internet Computer. And here the opinions of experts differ. Some are confident in the future increase in demand, while others are very skeptical. There are several “stumbling blocks” that need to be taken into account:

1. Overestimation of the project. It is known that only a small number of coins are currently in circulation (about 28%). The situation may change when 50% or more cryptocurrencies enter the market.
2. Internet Computer took too long to develop. Over the past five years, many types of cryptocurrencies have appeared on the crypto market, except for Ethereum, offering similar functionality.

The popularity of Internet Computer largely depends on what functions developers and ordinary blockchain participants will use. At this stage, the project is experiencing classic hype with rising prices. But what will happen next is difficult to predict.

How to steal cryptocurrency without hacking

Sometimes attackers don’t even need direct access to the victim’s wallet to steal their money—they just need to fool the owner and he’ll give it all away.

For example, relatively recently, scammers compromised the Twitter accounts of Elon Musk, Bill Gates, Kanye West and several other celebrities, and then posted promises on their behalf to double the number of coins sent by users. In just a few hours, the scammers enriched themselves by more than $100 thousand.

Even if you are sure that you yourself would never fall for such a scam, be vigilant - attackers regularly come up with new deception schemes. If someone simply offers you coins, think about the motives for such generosity. And if it comes to asking you to deposit a certain amount in advance, then you are probably being lured into a trap.

Moreover, it is in the field of crypto, many of whose projects are adventurous in nature, that scammers are most active, hoping that the user, accustomed to the non-standard behavior of the crypto world as a whole, will buy into their assurances.

Advantages and disadvantages

When considering the features of a project, it is important to highlight its strengths and weaknesses.

Advantages:

1. Adaptation with the Ethereum system.
2. Fork protection.
3. Integration into applications and private networks.
4. Availability of data storage in the cloud.
5. No restrictions regarding scalability.
6. Preparation of smart contracts.
7. Transactions with cryptocurrency within the network.

Flaws:

1. Uncertainty about the project's prospects.
2. Lack of a clear understanding of development goals.

How to protect yourself when trading cryptocurrency

It is very important that all your transactions with crypto occur through a secure communication channel. If you access an exchange website over public Wi-Fi, criminals can intercept transaction information or spoof the Internet page to steal your assets.

It's safer to trade over your home network because it's harder to hack than a public network, as long as you've protected it with a password. Of course, not the one installed on the router by default, but its own and quite reliable one. The factory password is often the same for all routers of the same model and makes your Wi-Fi vulnerable to brute force attacks.

In any case, it is a very smart practice to conduct all your crypto trading only through an encrypted VPN channel, which creates an additional layer of security.

When choosing a VPN service, pay attention to the connection speed (depending on the quantity and quality of the service provider’s server pool) and the presence of the kill switch function. The latter is especially important for high-risk operations: if the secure communication channel “falls” for some reason, then your device is automatically disconnected from the Internet, that is, unencrypted data will not go anywhere.

For crypto investors, we recommend our product Kaspersky Secure Connection, which is well optimized for such tasks.

And of course, it would be a good idea to install a reliable security solution on your computer or smartphone. Quite a lot of money is circulating in the world of crypto, which naturally attracts criminals. So the likelihood of encountering a specialized infection that is designed to steal keys to crypto wallets is quite high.