The development ideology of Fexbits implies the creation of its own unified ecosystem based on quantum technologies and distribution of platform resources between users. The main mission of Fexbits is to provide users with effective ways to earn rewards and bonuses based on the use of quantum computing and provide access to the platforms of strategic partners.
Our partners hold patents in the field of quantum computing, which are used by Fexbits in the cryptocurrency market. More than 20 offices have been opened by partners of the Fexbits platform in different countries of the world: United States, Mexico, Thailand, Cambodia, Russia, Turkey, Ukraine, Great Britain, etc.
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With a massive number of cryptocurrencies exploding in the market, crypto wallet application adoption is also rising at a faster pace. With the technological revolution, hackers have also fine-tuned their hacking methods and have now grown up smarter to hack your crypto wallets.
Generally, Cryptocurrency Wallet Development Company offers multi-layer security to the crypto applications developed by them. But, still can be prone to hacking attempts.
Hackers are Making a Way into Your Crypto Wallet!
The initial 7 months of 2022 witnessed $1.9 billion worth of crypto coins being stolen which accounts for 60% more compared to last year. When a user downloads a trojan application on the device, it steals $600,000 worth of Bitcoins from your Crypto Wallet Application. This Android trojan is called Sharkbot which initiates money transactions from your crypto wallets bypassing the security systems. This is just one type of trojan, there are multiple trojans the hackers can attack your Crypto Wallet Application with.
Also, hackers normally try to exploit the interfaces that connect the crypto wallet applications to the backend service that supports them.
Security Hacks You Need to Ponder on for Defending your Crypto Wallets!
Cold Wallet to be Your Savior!
The best way to prevent cryptocurrency loss is to store your coins in a cold wallet or hardware wallet. These wallets store your funds offline, thus preventing hackers from accessing your cryptocurrencies online or through traditional methods.
A cold crypto wallet is much like a USB device, holding a private key that is used to access your cryptocurrencies. Storing your private key online will result in hackers easily accessing it and your account will be compromised. This will lead you to lose all your crypto investment. So, it is advisable to store your private key offline.Exchange platform that Keeps Hackers Away!
Before you choose an exchange platform, make sure you carry out your research thoroughly on the security of the crypto exchange platform. Check online if the crypto exchange platform you are choosing has been compromised in the past or if any wallet on the exchange platform has been hacked. If the crypto exchange platform has been hacked, it depicts poor security protocols, where your crypto wallet or investment in it might be at risk.
Check if the crypto exchange platform is using multi-factor authentication or TLS/ SSL encryption to secure your wallet. In the last, verify if they have any safety measures in place like the transaction limits and notifications on every transfer or even the option to freeze the account and mitigate the damages.If you are looking for a crypto exchange development, here it is! RWaltz Software, Your trusted partner to launch your crypto exchange platform.
Multi-Factor Authentication to Authenticate Your Access!
Multi-Factor Authentication offers a layered defense mechanism by authenticating your wallet with independent credentials like passwords, security tokens, and/ or biometrics. To set up multi-factor authentication, you can select either SMS or a 2FA application push notification.
Be Aware of Phishing Attacks!
Phishing attackers generally target users by posing as legitimate entities to gain access to your sensitive information. Avoid falling prey to these phishing attacks by making sure you log into the correct crypto exchange platform. Don’t click on the link received over emails, chats, or even text messages.
Save the exchange link or add it to your favorites. Lastly, always verify the details twice before you make crypto transactions.
Don’t forget to Change Your Passwords Regularly!
It is a cyber law, that how much ever tricky password you set, one day it will be compromised. So, the best way to prevent this theft is to set a complex password, store it safely and change it regularly. Make sure you don’t reuse the password or set any personal information as a key.
Instead of saving passwords on google, use password managers. Lastly, make sure your password is updated every six months.
BitcoinVB – Highly Secure Wallet Application by the Industry Leaders!
BitcoinVB is a highly secure wallet application developed by RWaltz for ensuring the secure storing and management of bitcoins. Click here, to explore the portfolio! If you are looking for a similar wallet application, then RWaltz can be the right choice for you. We are a reliable cryptocurrency wallet development company that offers custom digital wallet app development.
Let’s Wrap Up!
Hopefully, the above article has enlightened your knowledge of digital wallet app security. If you have any queries, feel free to connect with our experts. Hurry up! Schedule a meeting now!
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The partnership lets FTX exchange users in 40 countries easily spend their bitcoin and cryptocurrencies at any merchant that accepts Visa cards.
FTX is launching bitcoin and crypto-backed debit cards in 40 countries.
The exchange partnered with Visa and will focus on Latin America, Asia and Europe.
The offering is available to US users, and the partnership will now be extended internationally.
Visa has partnered with one of the world’s leading cryptocurrency exchanges, FTX, to launch bitcoin and cryptocurrency debit cards internationally, per a press release.
“The debit cards, which are linked directly to a user’s FTX accounts, are currently available in the United States and are now being rolled out globally in over 40 additional countries, including many across Latin America,” p[er The next phase of the rollout for the FTX-branded Visa debit cards is expected in Europe before the end of the year, with additional regional launches planned for 2023.
Visa, along with its competitors in the marketplace, continues to hold that users of bitcoin and cryptocurrencies still want to use their holdings as a medium of exchange, even amid a bear market downturn.
“Even though values have come down, there’s still steady interest in crypto,” said Visa CFO Vasant Prabhu, per the release. The debit cards simply connect to FTX’s platform enabling users to spend the digital assets in their wallets without needing to remove the assets from the exchange’s platform.
“We don’t have a position as a company on what the value of cryptocurrency should be, or whether it’s a good thing in the long run –– as long as people have things they want to buy, we want to facilitate it,” said Prabhu.
Visa’s major competitor, Mastercard, has also partnered with a number of different companies to offer bitcoin and crypto-backed debit cards. American Express has reportedly expressed interest in offering a similar product as well, though its CEO said it likely would not be “anytime soon.”
FTX CEO Sam Bankman-Fried discussed Visa and other payment providers entering the ecosystem in a CNBC report: “There’s a decision you have to make as a traditional payments company: do you want to lean into this or do you want to fight against it? I respect the fact that many of them are leaning into it.”
Spending cryptocurrency may become a lot easier. FTX, one of the world’s largest crypto exchanges, has partnered with payments giant Visa to roll out debit cards in 40 countries worldwide.
The move would allow FTX users to pay for goods and services using debit cards that boast “zero fees.” Plus, card ownership is free, according to the company website.
Sam Bankman-Fried, the most influential person in crypto according to Cointelegraph’s Top 100 in 2022, has long touted his desire to unveil an FTX debit card. His company’s decision to partner with legacy payment rails — as opposed to crypto payment rails such as the Lightning Network — aligns with his views that the future of Bitcoin
The FTX token, the native cryptocurrency of the FTX trading platform, spiked 7% on the news, reaching highs of $25.62. The token’s all-time high is some way off, however, at almost $80.
Spending cryptocurrency may become a lot easier. FTX, one of the world’s largest crypto exchanges, has partnered with payments giant Visa to roll out debit cards in 40 countries worldwide.
The move would allow FTX users to pay for goods and services using debit cards that boast “zero fees.” Plus, card ownership is free, according to the company website.
Sam Bankman-Fried, the most influential person in crypto according to Cointelegraph’s Top 100 in 2022, has long touted his desire to unveil an FTX debit card. His company’s decision to partner with legacy payment rails — as opposed to crypto payment rails such as the Lightning Network — aligns with his views that the future of Bitcoin .
The FTX token, the native cryptocurrency of the FTX trading platform, spiked 7% on the news, reaching highs of $25.62. The token’s all-time high is some way off, however, at almost $80.
Asset managers continue to convert some of their mutual funds into exchange-traded funds. So what does that mean for investors? A 2019 change to the rules governing investment funds made it easier for managers to convert mutual funds to ETFs by removing the need for separate approval of each potential conversion by the Securities and Exchange Commission.
A handful of asset managers, including Dimensional Fund Advisors and JPMorgan Chase & Co.’s J.P. Morgan Asset Management, have recently converted actively managed mutual funds into actively managed ETFs. They say the change is in response to the preference of many investors for ETFs, which generally offer lower fees than mutual funds and provide a tax advantage.
Investors in the funds being converted might appreciate those benefits. But they need a brokerage account to keep the new ETF, and may have some tax consequences if they own fractional shares of the mutual fund.
Why convert?
The initial group of conversions has mostly been in actively managed stock or bond funds. For example, J.P. Morgan completed conversions of four funds in June, an actively managed fixed-income fund now called JPMorgan Inflation Managed Bond ETF (JCPI); an active equities fund, now JPMorgan Market Expansion Enhanced Equity ETF (JMEE); a real-estate income fund, now JPMorgan Realty Income ETF (JPRE); and a global equities fund, now JPMorgan International Research Enhanced Equity ETF (JIRE).
Dimensional Fund Advisors converted a $30 billion suite of actively managed systematic funds last year. Systematic funds’ investment decisions are largely guided by models based on extensive market data, rather than left purely to the fund managers’ discretion.
Analysts say actively managed funds are likely to be where most conversions happen. That’s because active funds have higher fees than passive ones and tend to generate more taxable gains through trading, which makes them more vulnerable to investors’ preference for lower fees and taxes.
There is a recognition among asset managers that there is a better way to offer certain strategies, and that’s coming alongside investor demand for ETFs,” says Daniel Sotiroff, a Morningstar analyst. Even mutual funds that already have some of the qualities of an ETF can benefit from conversion, he says. “If you look at what Dimensional converted, those funds were already tax managed as mutual funds,” meaning they were designed to minimize investors’ tax burden. “The ETF structure makes that process easier to do and comes with lower fees.”
He notes that ETFs typically don’t charge the so-called 12b-1 fees that mutual funds do. These fees, which are named after the SEC rule that allows them to be charged, cover the marketing and distribution of a mutual fund or ETF. ETFs also tend to have fewer trading transactions than mutual funds, which means they have lower transaction costs, because trades aren’t triggered by asset inflows and outflows in ETFs as they are in mutual funds.
ETFs offer a tax advantage because, since they can make fewer trades, they distribute fewer, if any, capital gains to investors. Some mutual funds are designed to distribute fewer gains, but investors are still likely to see taxable distributions over the course of their investment in a mutual fund.
The higher fees of actively managed funds and the taxes on capital gains from distributions have led to outflows in favor of actively managed ETFs with similar strategies for a number of years. The SEC rule change for conversions gives investors the option to stick with the same strategy and managers at a lower cost.
For fund managers, a conversion allows them to keep the performance record of the mutual fund as well as any investor assets in the fund that stay through the conversion. That can give the new ETF a leg up over a newly launched ETF, as many investors and financial advisers want to see a substantial record and enough assets to support the long-term viability of a fund before investing.
What to watch for
For investors in a mutual fund that is up for conversion, there are a few things to keep in mind. Those who invested in a mutual fund through a transfer agent instead of a broker, which is common, will need a brokerage account to be able to hold and trade the ETF. If they don’t have a brokerage account, there are many low-cost brokers, with some offering low or no minimums to open an account, but it may be a bit of a learning curve for those who haven’t used a brokerage account before.
ETFs also don’t offer fractional shares. Any fractional shares of the mutual fund held at the point of conversion will be redeemed and could result in a taxable gain.
A conversion may also require approval from shareholders, and if enough shareholders don’t want to convert, fund managers may opt to offer a separate ETF that runs the same strategy. Individual investors can then decide to move into the ETF on their own, but that could result in tax consequences when they sell out of the mutual fund if they end up with capital gains.
Mutual fund” is the common term for an investment vehicle that pools money from multiple investors and invests in various assets such as stocks and bonds. Most traditional mutual funds, commonly referred to as “open ended” funds, issue shares directly to shareholders and redeem them at the demand of the shareholder at the fund’s net asset value (NAV). Mutual funds register with the SEC under the Investment Company Act of 1940 (the Act).
While an exchange-traded fund (ETF) is similar to a traditional mutual fund in that it pools money into a fund to invest in various assets and can register with the SEC under the Act, it differs in that its shares are traded on a secondary market as opposed to directly between the shareholders and the fund. One or more intermediaries, referred to as authorized participants, seed the fund with cash and/or stocks in exchange for the fund shares and then list those shares on a secondary market to be bought and sold by the prospective fund shareholders.
A traditional mutual fund can be converted to an ETF. The present discussion focuses on the tax implications of doing so. A conversion may be appealing because of the greater tax efficiency of ETFs (discussed below), lower expense ratios, and the fact that a conversion utilizes the scale and performance of an existing fund. Mutual funds’ appetite for converting was further enhanced by the SEC’s approving Rule 6c-11 in 2019, which reduced the time and cost of launching an ETF.
Tax efficiency of ETFs
Both traditional mutual funds and ETFs that are domestic corporations — if they are registered with the SEC under the Act and meet certain diversification, income, and distribution requirements — are taxed as regulated investment companies (RICs) under Subchapter M of the Internal Revenue Code. Under these rules, they are not subject to entity-level tax if they distribute their net income and capital gains via dividends to their shareholders. Shareholders with nonqualified taxable accounts ultimately bear the tax burden.
ETFs are often more tax-efficient than traditional mutual funds, however. In the case of a mutual fund, besides the trading that occurs in the normal course of business, other transactions at the fund level can result in an increased tax burden for the shareholders. For instance, a portfolio rebalance and/or change in investment strategy can result in the fund’s recognizing substantial gains. Large redemptions can also cause a mutual fund to recognize gains because it may need to sell securities to raise the cash to meet the redemption request.
The ETF structure can mitigate or even eliminate this tax burden. With respect to redemptions, Sec. 852(b)(6) provides that a RIC that redeems shareholders with “property” instead of cash will not recognize any gain from the disposition of that property. While this provision applies to both traditional mutual funds and ETFs, mutual fund shareholders will almost always prefer a cash redemption, while authorized participants are usually indifferent.
With respect to a rebalancing of the portfolio, ETFs can utilize either a redemption basket (of securities) or a creation basket (of securities) between the ETF and the authorized participants. This allows the ETF to avoid recognizing and distributing taxable gains to the shareholders.
The conversion transaction itself
While the conversion of a traditional mutual fund to an ETF has numerous legal and operational hurdles, the details of which are outside the scope of this discussion, the tax structuring is fairly simple. Typically, the fund sponsor will create a shell ETF for purposes of the conversion. This ETF will likely have the same investment objectives, board of directors, and management as the original mutual fund. After the shell ETF is created, the original mutual fund merges into the shell ETF.
If structured properly, the merger will qualify as a tax-free reorganization under Sec. 368(a)(1)(F) (F reorganization). The requirements of an F reorganization, detailed in Regs. Sec. 1.368-2(m), are listed below:
Immediately after the F reorganization, all the stock of the resulting corporation, including any stock issued before the potential F reorganization, must have been distributed in exchange for the stock of the transferor corporation.
The same person or persons must own all the stock of the transferor corporation and of the resulting corporation in identical proportions.
The resulting corporation may not hold any property or have any tax attributes immediately before the F reorganization.
The transferor corporation must completely liquidate as part of the transaction.
Immediately following the potential F reorganization, no corporation other than the resulting corporation may hold property that was held by the transferor corporation immediately before the reorganization.
Immediately following the potential F reorganization, the resulting corporation may not hold property acquired from a corporation other than the transferor corporation.
Given the nature of the conversion of a traditional mutual fund to an ETF, it is likely that the transaction will meet the above requirements. Assuming it does, an F reorganization is considered a “mere change of form” for tax purposes. As such, the fund tax year end, employer identification number, and all tax attributes from the original mutual fund remain.
There are some other ancillary tax implications of the conversion. The mutual fund may want to sell some assets prior to the conversion; this could result in some taxable distributions to shareholders. Also, unlike traditional mutual funds, ETFs generally do not issue fractional shares, so these will be redeemed with cash prior to the conversion and could result in a nominal amount of tax.
Other items to consider
While this item focuses primarily on the tax impact, some nontax aspects of converting a traditional mutual fund to an ETF should also be considered:
Shareholders may need to set up a brokerage account to hold the ETF shares.
Unlike traditional mutual funds, ETFs can trade at a premium or discount to NAV, which can create some level of risk to the shareholder. However, the create/redeem process between the ETF and the authorized participants can operate to reduce any premium or discount spreads.
Approval by the mutual fund’s board of directors may be required to complete this transaction.
Potentially significant benefits
While substantial operational and legal obstacles need to be considered and addressed, the conversion of a traditional mutual fund to an ETF can have significant tax benefits, depending on the nature of the fund’s activities and the makeup of the fund shareholder base.
The development ideology of Fexbits implies the creation of its own unified ecosystem based on quantum technologies and distribution of platform resources between users. The main mission of Fexbits is to provide users with effective ways to earn rewards and bonuses based on the use of quantum computing and provide access to the platforms of strategic partners.
