The Top Five Fiat-Backed Stablecoins

Stablecoin regulation and the concept of mass stablecoin use grows daily. What began with news of an unfortunate crash highlighting the “risks” of stablecoins continues to snowball into a globally supportive movement for fiat-backed stablecoins. 

The key to understanding: algorithmic stablecoins, relying upon an algorithm to maintain a hard peg to an external asset, suffer from a shaky foundation. The goal is creative, novel–even noble, in its hope to remove fiat’s inflationary influence. Yet can an algorithm deal with freefalling markets?

No. Investors and regulators alike learned, very quickly, that introducing volatility or unguaranteed assets anywhere in the chain of a stablecoin’s reserves almost guarantees disaster. Remove that monkeywrench and we have something of a masterpiece. 

The European Council introduced a comprehensive framework effectively accepting fiat-backed stablecoins. The United States purported legislation calling for stablecoin regulators and protections for crypto investors, although this is in flux until September. 

But why, all of a sudden, the mad dash from governments across the world? The answer lies in market capitalization. For example, Tether reached over 83 billion USD in 2022, from under 1 billion USD in 2017. 

This article delves into the top five fiat-backed stablecoins and what you need to know before regulation is likely passed everywhere. 


Launched in 2014, Tether is a fiat-backed stablecoin, pegged 1 to 1 to the US dollar. One USDT equates to one USD. 

  • Name: Tether
  • Ticker: USDT
  • Price: 1 USD
  • Market cap: 67.6 billion USD
  • Crypto rank: 3

As a recap, a fiat-backed stablecoin generally keeps 100% of the value of coins in regulations backed in actual US dollars. It may publish regular, audited reserve reports proving this backing. 

Tether, for example, is famous for publishing reports detailing the makeup of its reserves. Currently, almost 80% goes to cash and cash equivalents, including short-term paper (debt).

USD Coin

Launched in 2018, USD Coin is also a fiat-backed stablecoin, pegged 1 to 1 to the US dollar. One USDC equates to one USD. 

  • Name: USD Coin
  • Ticker: USDC
  • Price: 1 USD
  • Market cap: 52.4 billion USD
  • Crypto rank: 4

Like Tether, USD Coin publishes its reserve reports frequently. It expressly markets itself as a “digital dollar.” 

Binance USD

Launched in 2019, Binance USD is a fiat-backed stablecoin offered by the world’s largest crypto exchange, Binance. 

  • Name: Binance USD
  • Ticker: BUSD
  • Price: 1 USD
  • Market cap: 18.8 billion USD
  • Crypto rank: 6

Binance USD operates identically to Tether or USD Coin, but its focus remains for users of the Binance exchange


Launched in 2017, Dai is a crypto-backed stablecoin focused on upholding its ethos of decentralization. Instead of US dollars or euros, only other cryptocurrencies comprise the reserve assets of Dai. Decentralization refers to a mandate of not having a central entity controlling the supply of Dai coins. 

  • Name: Dai
  • Ticker: DAI
  • Price: 1 USD
  • Market cap: 7.1 billion USD
  • Crypto rank: 13

Dai remains popular in DeFi (decentralized finance) circles, with each “DeFi” referring to a protocol or other entrepreneurial effort to improve or replace traditional white collar services. 


Launched in 2018, TrueUSD builds upon the fiat-backed stablecoin ethos with daily holdings reports, monthly audits, and protections against theft. 

  • Name: TrueUSD
  • Ticker: TUSD
  • Price: 1 USD
  • Market cap: 1.2 billion USD
  • Crypto rank: 44

Despite offering a pure fiat-backed solution for US dollars, it still falls by the wayside and well under the rank of crypto-backed Dai. This may be due to the dominance of Tether and USD Coin. 

Summing Up

Three of the top 10 cryptocurrencies in the world by market cap are stablecoins. Specifically, they are fiat-backed stablecoins whose mandates are to provide stability, utility, ease, and minimal transfer costs. 

That is to say, their mandates do not include “changing the system” or “bucking the trend.” They make no ideological arguments and, unlike DeFi, seek not to challenge the overarching dominance of central banks. 

Will this change? Will inflation and global inequality reach a point to where many more might risk stability for a currency not prone to double-digit inflation? Time will tell–and fiat-backed stablecoins may yet be the first step. 

Disclaimer: The author of this text, Jean Chalopin, is a global business leader with a background encompassing banking, biotech, and entertainment. Mr. Chalopin is Chairman of Deltec International Group,

The co-author of this text, Conor Scott, CFA, has been active in the wealth management industry since 2012, continuously researching the latest developments affecting portfolio management and cryptocurrency. Mr. Scott is a Freelance Writer for Deltec International Group,

The views, thoughts, and opinions expressed in this text are solely the views of the authors, and do not necessarily reflect those of Deltec International Group, its subsidiaries, and/or its employees. This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service, or offering. It is not a recommendation to trade. 

Crypto Lending, Staking, and Protocol Dividends

Dividend stock and coupon bond investors earn passive income via dividends or their coupon payments. For the longest time, no regular paying passive investments were available in the crypto world, having to rely solely on capital gains, but that has quickly changed. Now there are options for earning passive income through crypto lending, crypto staking, and protocol dividends.  

Lending, staking, and dividends are now ways for crypto holders to make money with their crypto holdings without selling their holdings. This set of options leads an investor to ask what is the difference between them, and is there one preferable to the other two? 

We will start with a brief crypto introduction, explain the different passive income choices for crypto investing, and then explain the positives and negatives of choosing one over the others for a passive investment choice.

A Crypto Brief

Until the advent of Bitcoin in 2009 by the mysterious Satoshi Nakamoto, virtual digital currency was a thing of science fiction. The only type of currency the present generations knew was fiat. That which was only backed by the good name of the government and central banks that issue it. Some older readers might have known a time when a currency was tied to assets like gold and, in some cases, silver.

Notice what is written directly below the picture of George Washington, “IN SILVER PAYABLE TO THE BEARER ON DEMAND.”

Since the Great Depression, the U.S. dollar has been defined by the county’s economic outlook and a promise that the U.S. government will always consider the dollar redeemable for lawful currency at the U.S. Treasury. This is the meaning behind, “Backed by the full faith of the U.S. government.”

Cryptocurrency has an aim to avoid any governmental or institutional middleman through the decentralization of money, giving power back to the holders. Such decentralization is meant the make the transfer of value between the users of the currency easier, reducing the costs of these transfers and preventing any tampering or corruption possible by a middleman.  

Cryptos are able to do this with the advent of blockchain technology. In its most simple form, a blockchain is a database that proves the crypto’s value by maintaining a transaction record in a decentralized manner, which is accessible by all. However, it is “immutable” or alterable by none. 

Bitcoin is the most well-known crypto, and it was the first. However, Bitcoin is only one form of virtual currency and is often misused to mean cryptocurrency in general. With the advent of so many different cryptocurrencies, their concept can be confusing because Bitcoin is considered a tradable asset.

Cryptocurrencies are now not just for tracking the transfer of a single coin’s value, but blockchain projects such as Ethereum, Cardano, and Polkadot have been created to facilitate a vast array of new activities. These projects have more native functionality and are cheaper to operate. 


This article focuses on token rewards, like the dividends paid by a share of stock owned. However, in two cases, this is not a profit share. It is a form of compensation received from lending your tokens back to the blockchain project for use in the facilitation of transactions and administration of processes on the blockchain.  

·       Crypto lending is the leasing out of owned crypto to human borrowers, and in return the lender receives interest.

·       Crypto staking is the leasing out of owned crypto to that particular coin’s blockchain to receive token rewards.

·       Protocol dividends represent the newest passive income streams and are closest to the dividends of stocks. These tokens give their holders a payment as a portion of the issuer’s profits, but the difference is that the token owner does not have any other rights to the company.

Let’s review the adoption of these different passive earnings approaches. In April, the largest institutional crypto lender, Genesis, released its Q1 2022 Market Observations Report. The report stated that as of March 31, 2022, cumulative loan originations reached $195 billion, with $44.3 billion in Q1 2022 alone. This Q1 result is more than double all of the crypto loans that originated in 2020 combined.  

Though the value of crypto has decreased significantly DeFi Pulse shows that there is nearly $39 billion locked in lending, up from just over $9 billion two years prior (June 21, 2020).

Data courtesy of DiFipulse

In the past 12 months, staking has also increased in volume. In the Staked “State of Staking” Q1 2022 report, it was stated that staking yields increased to 15.4%, and the staking rate grew to 49.3%. This resulted in staking rewards that were just under $15 billion for Q1, up 57% over Q1 2021. To get such a return, investors would need to purchase about $860 billion in 10-year U.S. Treasury bills to realize a similar return. This report also stated that Proof of Stake protocols account for 30% of cryptocurrency’s total market cap.  

Dividend-paying tokens are the newest form of coins that provide owners a passive income. The payouts may be regular, weekly, monthly, they may be dependent on a defined level of token ownership. The larger holders are first in line, and they may also require the network to reach a particular milestone of performance. Being new, there is very little info about these types of tokens’ overall performance. However, there are several tokens that have chosen this route to provide a source of income for holders.  

Differences Between the Passive Methods

All crypto investments can be risky due to their volatility, and even stablecoins have shown that they are not immune to the risk. Depending on the type of stablecoin, the backing behind it can make its peg to a fiat currency stronger, lowering the risk to investors.

Crypto Lending

Crypto lenders will lease their crypto to borrowers on specific platforms. These platforms charge borrowers’ interest on the loans and pay a portion of that interest to the lender. The loans are secured with a deposit of the borrowers’ crypto. 

Bitcoin lending can generate 3-8%, and other altcoins can generate returns in the double digits. Stablecoins can be lent out for good returns without the typical crypto volatility. Some platforms offer up to 12% returns, but returns are generally a bit higher than the typical 0.5% of a bank savings account.

An essential crypto lending positive is that your money is tied up for a term of between 1 and 90 days, not years.  

Crypto Staking

Stakers commit their tokens to the native blockchain. The stake is used to ensure the network’s security infrastructure, and the staker is compensated with a reward of more coins. Staking is usually for a 30-day cycle of commitment, and staking will usually provide better rates than a bank CD. There are staking pools where you don’t have to stake the entire required minimum amount needed (Ethereum requires 32ETH, approximately $38,300USD at the time of writing).

A new method called “liquid” or “soft” staking is also available, giving you access to your funds even while staking them, giving the returns for staking and the liquidity for trading when needed.  

Protocol Dividends

Being similar to stock dividends, protocol dividends vary greatly in how and how much gets paid to holders. For example, Hong Kong-based Kucoin will share 50% of the transaction fees with the holders of 6 or more KCS tokens. The better the exchange does, the higher the dividend.  

Decred supplies decentralized credit. This multi-platform crypto has a hybrid proof of work (PoW) and proof of stake (PoS) consensus mechanism that is run by the DCR token. DCR stakers can receive dividends of up to 30% per year. 

Ontology offers peer-to-peer trust infrastructure, and users can benefit from dividends and staking rewards. A $10,000 investment currently has the potential to make a 43% annual return.

Safety and Regulation

There are some issues with crypto passive income. Lending always has the risk of default, and coin volatility can happen when the investment is ongoing.  The recent crypto market falls have shown that even Bitcoin and stablecoins are susceptible to volatility. This natural uncertainty means that a coin can drop in value while staked or lent out, leaving you unable to get out and limit losses.  

Governments have been pressuring lending platforms over certain methods that are considered “unlicensed securities.” This gives reason to use platforms that are centralized and licensed to conduct business in your nation.  

Staking does not have the same regulatory concerns as lending, but volatility remains. For traders looking at capital gains as their source of income, only liquid staking may be the optimal choice.

Closing Thoughts

Crypto lending, staking, and platform dividends are new ways to earn passive income on crypto holdings. If any of these are in your portfolio, be diligent with the tax and regulatory requirements of your locality to ensure that you are compliant. As the crypto world expands further, there will likely be more types of passive crypto investments. 

These revenue streams have incredible potential for economic gain, but they also have corresponding risks. They should be considered part of an overall portfolio, not stand alone. Review the different options for lending platforms–they differ significantly and have different risk profiles.

Most staking and lending activities are not warranted if liquidity is needed, but liquid staking and dividends could make sense. If you are a long-term holder, then any of the methods may produce significant results assuming that the coin’s volatility matches your risk profile.  

Disclaimer: The author of this text, Jean Chalopin, is a global business leader with a background encompassing banking, biotech, and entertainment. Mr. Chalopin is Chairman of Deltec International Group,

The co-author of this text, Robin Trehan, has a bachelor’s degree in economics, a master’s in international business and finance, and an MBA in electronic business. Mr. Trehan is a Senior VP at Deltec International Group,

The views, thoughts, and opinions expressed in this text are solely the views of the authors, and do not necessarily reflect those of Deltec International Group, its subsidiaries, and/or its employees.

Bear Market Crypto Strategies

In June 2022, the S&P 500 entered its first major bear market, excepting the very brief bear market of 2020, in 13 years. Bitcoin’s original ethos of “digital gold” implied a lack of correlation to traditional markets. Yet crypto, the S&P 500, and Nasdaq appear interlinked regardless. So, what are the possible bear market crypto strategies available to investors today? 

First, we must understand the relative youth of cryptocurrencies as an asset class: 13 years. Analysts focusing upon traditional asset classes benefit from over a century of modern data concerning stocks, bonds, funds, and so forth. However, every year brings something new for crypto. 

Second, a traditional bear market should not in theory translate to a “crypto bear market.” Yes, so far, it does. What causes such a bear market, then? 

Third, what bear market crypto strategies are available to us? Usable data and advice feels limited. There remains a handful of globally minded, professional advisors specializing in digital assets. Fortunes continue to be made with crypto, and there are relevant tips for all of us. 

This article delves into crypto bear markets, their possible causes, and the strategies for coming out on top. Let’s get to it. 

Traditional vs. Crypto

Investopedia describes a bear market as “a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.” 

Typically, the focus is upon an overall market or index, such as the S&P 500 and Nasdaq. They may precede or associate with a larger economic recession, either domestic or global.

Source: Practical Wisdom – Interesting Ideas

For understanding digital asset markets and bear market crypto strategies we can use the definition found on Coinbase’s website: “Bear markets are defined as a period of time where supply is greater than demand, confidence is low, and prices are falling.” 

One clause trumps the three, “confidence is low.” Despite the original premise of digital gold, the truth lies closer to the idea of risk-on investing. Confidence, another way of saying “investor sentiment,” dictates the general trend in prices that we arguably have a market dominated by the style of growth investing

This runs similar to investopedia’s definition, excepting two key details: (1) 20%, and (2) the implicit reference to an overall market index. An overall market index, such as the S&P 500, contains growth and value securities, making it a broad index. 

Deteriorations in economic conditions translate to central bank decisions, and both translate to bear markets. The correlations between economics and traditional assets remains clear. For example, a sharp drop in the savings rate implies a further decline in luxury or inelastic spending. The correlations between economic indicators and digital asset markets feel remarkably less clear. 

What Causes a Crypto Bear Market? 

If we assume that digital assets markets, given their relative newness to the world, reflect the growth investing style, then we can reasonably speculate towards their origins. 

Excessive Leverage

Defined as open interest divided by the value of relevant reserves, the estimated leverage ratio provides a glimpse into traders’ appetites. For Bitcoin, this reached a new high in January 2022 and offered a long-range warning signal. 

Interest Rate Hikes

Like gold, major cryptos are inversely correlated to real interest rates. As the Fed funds rate stuck to 0.25% in 2021, Bitcoin soared 60% and Ethereum 399%. Yes, you read that correctly. 

Yet excessive growth begs excessive increases in prices. Inflation is a sharp, possibly deadly, double-edged sword. The post-industrial economy relies upon inflation to encourage demand and innovation in tandem, yet too much eats away at savings, wages, and sentiment. 

Traditional Asset Losses

By examining similar growth and alternative sectors, analysts can forecast what’s likely to happen to cryptos. 

Bitcoin’s price peaked at nearly $70,000 in November 2021, when the Russell 2000 (a small-cap index) also peaked at nearly $2,500. The patterns have since then moved oddly in step. 

Technical Troubles

Bitcoin, Ethereum, and altcoins remain famous for their volatility–perhaps much more so than for their mystery. 

In volatile markets, technical indicators guide traders on how to act and react in the short-term. For example, a “death cross,” or when a 50-day moving average falls below a 200-day moving average, suggests selling immediately. 

Bear Market Crypto Strategies

Before we delve into general tactics for managing a crypto bear markets, there are some fundamentally oriented pieces of advice to consider: 

  1. Take the time to understand your favorite coins’ protocols; these reflect their competitive edges
  2. Research and form an opinion on the major “proof-of” systems, such as work, stake, or hybrid
  3. Determine your investing time horizon and maximum allowed drawdown (loss)

And with that said, here are three strategies to maximize returns and minimize losses in a crypto bear market. 

Dollar-cost averaging. Gauging the specific bottom of a bear market remains a virtually impossible feat even for veteran analysts. However, data from a 60- or 90-day period may provide the grounds for an educated guess. Dollar-cost averaging here means to purchase equal dollar allotments of cryptocurrency at regular time intervals, often weekly. 

Staking. Not the same as lending for interest, staking refers to supporting the protocols of blockchains using the proof-of-stake system. By depositing or staking your coins, you become a validator (i.e. verifier) for that blockchain and effectively work for that blockchain. Staking represents your yield and paycheck. 

Diversifying. With digital assets, it pays to understand the different possible protocols and uses for blockchain technology. Bitcoin is the standard proof-of-work cryptocurrency and maximizes security through required energy power (to solve the next hash puzzle). After the upcoming Merge, Ethereum is to use proof-of-stake, or the energy-conscious system of randomly chosen validators who stake their holdings. 

While it’s always recommended to sit down with a professional advisor well-versed with digital asset markets, a blended approach is a good place to start. Identify your time horizon and risk tolerance, and then determine what you want to buy through dollar-cost averaging, what you would like to stake, and which blockchain protocols may lead the next bull market. 

Disclaimer: The author of this text, Jean Chalopin, is a global business leader with a background encompassing banking, biotech, and entertainment. Mr. Chalopin is Chairman of Deltec International Group,

The co-author of this text, Conor Scott, CFA, has been active in the wealth management industry since 2012, continuously researching the latest developments affecting portfolio management and cryptocurrency. Mr. Scott is a Freelance Writer for Deltec International Group,

The views, thoughts, and opinions expressed in this text are solely the views of the authors, and do not necessarily reflect those of Deltec International Group, its subsidiaries, and/or its employees. This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service, or offering. It is not a recommendation to trade. 

Using Stablecoins as a Savings Account

Our article focusing upon the inevitability and importance of stablecoin regulation given the success of fiat-backed stablecoins indirectly introduced another subject: savings in the time of inflation. How are investors already using stablecoins as a savings account? 

Regulators across the world seem to approve of fiat-backed stablecoins, whether begrudgingly or not, because they hold to their pegs through the simplest of safeguards. That is, one US dollar or euro (for example) for every coin “minted” or released. 

It works, virtually flawlessly, as it seeks not to eradicate the fiat structure but destroy the incumbent idea that transfering cash should cost anything more than 1 or 2 USD. Frankly, it should cost nothing

In addition, using stablecoins as a savings account opens up the door to a much more sophisticated “crypto” portfolio arguably able to beat traditional returns, particularly during global bear markets. Fiat-backed stablecoins serve as gateways to much greater yields and capital gains. 

This article delves into the wisdom of embracing stablecoins as a savings account in this year of rampant inflation.  

The Cost of Cash Savings

What do we mean by the cost of cash? Simply put: it costs money to hold money. The opportunity cost we hear of in economics class actually takes cash out of your pocket. The technical term for this is inflation. 

For July 2022, the headline consumer price index rose by a less-than-expected 8.5% in the USA. 

In other words, the value of your US dollar decreased by 8.5% in the past year. If you did nothing with one dollar, you lost 8.5 cents. 

In this way, inflation forces you to invest, to put your capital to work. This remains the nature of modern economics, which introduced the common term of “healthy inflation” at 2 percent. As economies grow, businesses in general want to increase their profits, leading to noticeable price rises over the long term.

However, what’s distinctly wrong with 2022 is the reward for saving, or traditionally known as “interest.” For the USA, the national average savings account rate is currently 0.13 percent. Is that worth opening an account? The paperwork? 

Using Stablecoins as a Savings Account

Stablecoins open up new doors and new financial opportunities in tandem.

Towards the latter part of the last decade, getting involved with crypto felt like trusting your life’s savings with a dodgy “digital wallet” that worked in a manner beyond full comprehension. And this digital wallet could be hacked. Therefore, you had to make your wallet “cold” by taking your wallet “offline” and writing your “private key” down on separate sheets of paper. 

Because you could simply lose your life savings too, in the way you might lose your TV remote. 

However, coronavirus taught us the sheer potential of shifting all of our workflow to an encrypted cloud safe from hacking and manipulation. Now, work-life balance exists. Remote working feels the norm. An office needs a reason to call you in.

Cryptocurrency exchanges now automate the wallet process for you, facilitating trading as an online broker would, while often providing insurance in the event of hacking or theft. Opening a new account for stablecoins generally takes less than 10 minutes from the moment you open your laptop. 

In addition to eliminating transfer fees, stablecoins open the door to “staking,” or the common practice of depositing or staking your stablecoins for use by a specific blockchain or protocol. 

Any one protocol is the product of an entrepreneur or institution trying to disrupt the incumbent issues with traditional finance or the traditional brick-and-mortar world. These are the folks working to make your life easy while hoping to make a digital buck along the way. 

For example, the world’s largest stablecoin by market capitalization, Tether, currently pays an annualized staking rate of 6.02%


Deltec takes the common practice of providing access to traditional assets and digital assets simultaneously, but gives holistic, actionable advice along the way. Using stablecoins as a savings account, particularly in the context of a mixed portfolio, yields a tertiary benefit beyond free transfers and high deposit rates. 

Crypto-to-fiat transfers can turn costly, especially when working with alternative cryptocurrencies not among the massive Bitcoin or Ethereum blockchains. Crypto-to-crypto remains a solid alternative as it offers substantial liquidity. 

For example, Tether currently has a 24-hour volume of 69 billion USD equivalent. This is a simple measure of how much Tether was traded on a rolling, daily basis. 

Cryptocurrency liquidity pools tend to utilize major, liquid coins as a central segway between multiple other cryptos. This process is known as “routing.” 

Source: Whiteboard Crypto

Using stablecoins as a savings account offers 5 key benefits:

  1. Eliminates transfer and similar banking fees
  2. Widens the range of eligible transferees to anywhere on the globe
  3. Offers above-average staking rates
  4. Offers the chance to take part in very high-yielding liquidity pools
  5. Opens the door to many other cryptocurrencies

While many crypto enthusiasts seek to reduce the reliance upon fiat and its possibility of extraordinary inflation, we count our victories where we can. These essential benefits to stablecoins both democratize the world’s access to capital and offer the financial means to a better life for all. 

Disclaimer: The author of this text, Jean Chalopin, is a global business leader with a background encompassing banking, biotech, and entertainment. Mr. Chalopin is Chairman of Deltec International Group,

The co-author of this text, Conor Scott, CFA, has been active in the wealth management industry since 2012, continuously researching the latest developments affecting portfolio management and cryptocurrency. Mr. Scott is a Freelance Writer for Deltec International Group,

The views, thoughts, and opinions expressed in this text are solely the views of the authors, and do not necessarily reflect those of Deltec International Group, its subsidiaries, and/or its employees. This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service, or offering. It is not a recommendation to trade. 

Deep Learning, AI, and Finance

Deep learning has been applied to computer vision (self-driving cars), natural language processing (speech-to-text), and audio-visual recognition. The successes seen with deep learning as a data processing pathway have attracted interest in several areas, including research and finance. 

According to the IDC, banking will be one of the industries that spends the most on AI solutions in the coming years. With the proliferation of Fintech in the recent past, the use of deep learning and AI in finance has already become prevalent. 

We want to introduce this field of Deep Learning that is growing in prominence quickly, provide a few examples of how the banking and finance worlds are solving problems with state-of-the-art deep learning models, and give a vision for the future of finance.

Deep Learning Simplified

Deep learning comprises a subset of Artificial Intelligence and Machine Learning that provides the output for a set of highly complex inputs. Within deep learning itself are neural networks and deep neural networks, which we will explain in brief shortly.  

Artificial intelligence is our broad idea of learned concepts by machines that are intended to supplement or replace the actions of humans. More simply, AI is a machine that mimics the human mind, with learning, rationalizing, and problem-solving skills.

Machine learning is the application of algorithms and statistical models where a machine will perform a specific task, but does not need any explicit instructions to do so. This ability is because machine learning algorithms are using learned patterns and inferences they gain from past data.  

As we move deeper, reaching deep learning, we are now utilizing huge data sets, and the information available is very complex. With this information, a deep learning model can identify errors and correct them without the intervention of humans. Machine learning will not use this sort of in-depth information, and it cannot correct errors without human intervention.   

Deep learning takes advantage of neural networks, which are algorithmic systems that can process information the way humans would and then solve various tasks. This is the point where the concept of artificial neural networks comes into play, where the designs mimic a biological neural network (the nerve cells within life forms). 

Image courtesy of

Deep neural networks are created when there is a combined group of artificial neural networks, and this group works together to provide outputs to a set of very complex inputs. 

Image courtesy of

The more complex the inputs, the better deep neural networks will perform compared to less sophisticated machine learning models.  

Deep Learning and Finance

When we turn to finance, artificial intelligence is widely applied to the industry. The banking sector is making investments in fraud analysis and investigation, programmed robo-advisors, and recommendation systems. 

Research from Accenture indicates that $1 billion in value will be added to the financial services industry by 2035. AI is being used to identify unusual debit and credit card use or a large number of deposits into an account. 

These applications are ways that artificial intelligence can save clients and banks from ongoing fraudulent activity. AI is also being used to make trading easier and more efficient with organized, quick decision-making, taking advantage of the various factors in the markets that neither a single person nor even a team of humans could process at the same rate. 

Deep learning provides capabilities to automate complex operations and make decisions at higher degrees of accuracy than other statistical and machine learning methods. 

There is an important factor required to run deep learning models, which is the need for a significant volume of high-quality datasets in order to produce these beneficial and more accurate insights.  Fortunately, this kind of data is exactly what the financial industry has and can utilize. The plethora of bill payments, transactions, suppliers, customers, prices, and their movements can fuel deep learning models and result in successes.  

Supervised Models and Unsupervised Models

Deep learning models are characterized by two broad types:

Supervised and Unsupervised

We won’t go deep into the specific algorithmic models, such as, Convolutional and Recurrent Neural Networks, Self-Organizing Maps (SOMs), and Autoencoders. However, we will say that these supervised and unsupervised models are trained differently and hold different features.  

Supervised models are trained with examples of a particular dataset. There is a list of “features” that the data set will include (weather, price, credit score, age, location, employment, salary, etc.), and it also has an output result that can be two or more choices (paid loan off or defaulted, a number or percentage), but the output has been characterized by human intervention.

Unsupervised models are only given input data. They don’t have any set outputs. These models will infer underlying hidden patterns using historical data. With such an approach, a deep learning model will try to find similarities, differences, patterns, and or structure in the data by itself. 

For example, the computer knows what a cat picture looks like but does not know that it is specifically a cat nor that there are other cats in the world. It “sees” any image that has two ears, four legs, a tail, fur, and whiskers and predicts that it is a “cat” to the model. This process is considered unsupervised.  

If it is told that the first training picture is a cat and a second picture is a cat, but a third is a dog, then it is supervised.  

Deep Learning Use Cases

While there are several use cases for deep learning in finance, we will introduce the places where it is already active and provides the most benefit to the financial industry. 


Deep learning systems use learned patterns from historical records and the results of document processing to assess the credit worthiness of loan requests. The input data include income, age, occupation, current financial assets, overdraft history, current credit scores, outstanding balances, foreclosure history, loan payments sizes, and other data points. 

Combining all this information, a deep learning model can decide about a client’s qualification for a loan and the likeliness that they will repay the loan as expected. It will further improve based on the results it sees with its own decisions. 

Customer Service

Financial service companies are using finance-specific telephone, and web-based chatbots with deep learning models behind them intended to improve the user’s experience. These deep learning-based solutions bring personalized service to customers allowing them to complete several financial activities, including the:

  • Automation of frequently completed actions (checking balance, account numbers, recent transactions).
  • Suggestion of products that are not currently used by customers but might be a good fit (credit cards and other loan products, overdraft protection).
  • Answering of key questions (what balance is needed to waive by account fees?).

Deep learning models can also identify potential churn and prevent customer loss by analyzing interactions and preemptively making special personalized offers to retain the customer. This capability allows insurance companies and banks to provide new plans and discounts that will protect their customer base from other institutions.

Fraud and Compliance

Deep learning is effective at identifying suspicious transactions in real-time with high precision, preventing them before they are complete. 

It can also incorporate unstructured data such as satellite and street view images to confirm the existence of a business to facilitate other compliance controls. With these features, deep learning algorithms can reduce a bank’s operational costs while also improving its regulatory compliance.

Improving Credit Utilization

Financial institutions want cardholders to utilize their cards effectively, and deep learning systems can identify optimal consumers. This allows for more meaningful questions to be put on card applications and optimizes the respective credit limits.

Market Predictions and Trading Analyses 

Using historical data and additional parameters of the current market, the neural networks of deep learning systems can predict stock values. The systems will utilize detailed data to predict the market and individual asset values. 

With more data using its system of hidden layers, a deep learning network’s prediction ability improves. Because a deep learning model can analyze numerous data sources at the same time, including sentiment analysis, it can provide results faster than humans. Lacking emotion, the predictions and trade decisions are neutral and more data-driven. 

Robo-Advisory Services

A robo-advisory platform is nothing but algorithms that advise clients or advisors with regard to portfolio allocation and constituents. These tools recommend specific products like insurance, portfolio management, and distribution across various investment opportunities.  

Insurance Underwriting

Using historical data, insurance companies train deep learning models to evaluate potential policies.  Data can include health records, wearables, potential health issues, income, age, profession, credit history, and more. These models can predict and reduce risks, set more accurate premiums, and improve the speed of the underwriting process.  

The Future of Deep Learning in Finance

With the wide offering of services that deep learning provides to finance, the future is bright. According to Varified Market Research,’s evaluation report on deep learning in finance states that deep learning will continue expanding until at least 2027 and beyond. 

The presence of machines making more decisions in the financial realm, which started high-frequency trading, already makes billions of trades possible in a microsecond. By 2018, up to 73% of trading was being done by algorithms, and it is likely higher now. 

The global rating agency Crisil told that they were investing heavily in deep learning and had every intention to continue doing so because of the positive results, stating that they have been adopting automated data extraction tools for unstructured paragraphs, tables, and more. This is a key boon, as Crisil told the magazine that nearly 90% of its key processes are data-driven.  

Because automated systems can make operations faster and more accurate, they can maximize returns for financial institutions that apply them. The markets are becoming more sophisticated with added AI trading systems making up more of their trading volume. 

Deep learning will imbed its importance in finance and shape the industry to come. 

Closing Thoughts

We have provided a brief overview of deep learning and its use in the financial, insurance, and banking worlds. The applications of models are both diverse and new. 

What needs to be considered is that the data going into a deep learning model is critical. It needs to be clean and accurate to get the best results. If there is a bias in the data going in, then that same bias will continue, and this has happened in the past.  

For example, will we be creating a group that will have access to financial services and completely ignore another set? Will our algorithms for offering credit be extracting too much from our clients, putting them into situations that could be beneficial to us but detrimental to them? 

These are all ethical questions that need to be considered when building deep learning models. If created ethically, deep learning models shall become a key pillar of our future.   

Disclaimer: The author of this text, Jean Chalopin, is a global business leader with a background encompassing banking, biotech, and entertainment. Mr. Chalopin is Chairman of Deltec International Group,

The co-author of this text, Robin Trehan, has a bachelor’s degree in economics, a master’s in international business and finance, and an MBA in electronic business. Mr. Trehan is a Senior VP at Deltec International Group,

The views, thoughts, and opinions expressed in this text are solely the views of the authors, and do not necessarily reflect those of Deltec International Group, its subsidiaries, and/or its employees.

Why Stablecoins?

The fundamental question behind stablecoins and their destiny for disruption remains: why? Why do we need stablecoins at all? The world was getting on fine without them. It was more or less, stable. 

Was it? 

The bear market of 2022 following a virtually unbelievable v-shaped recovery following the first global pandemic of several generations brings into question the sustainability of said recovery. Pumping helicopter (free) money into a global consumer base alongside additionally free money from central banks everywhere challenges the concept of purchasing power. 

Meaning, that purchasing power, the worth of your dollar or euro, should over a short-term remain stable while you accept small deteriorations over time. 

However, the USA is currently experiencing, or suffering, a 9.1% inflation rate. All else held equal, this implies a 9.1% deterioration in your dollar over the last year. Another problem: we’re not yet sure if inflation has yet peaked, whether in the USA or abroad. 

So how can stablecoins help? What’s the point?

The Purpose Behind Stablecoins

The primary ethos of a stablecoin remains, forevermore, stability. The crypto community understands the outer world sees the volatility of cryptocurrencies as a whole, uninviting. 

Like any traditional portfolio requires cash within a mix of equities or mutual funds, for example, a crypto portfolio necessitates the equivalent. Stablecoins represent that equivalent. No matter the issue, 1 USD equals 1 USD. Likewise, 1 USD Coin always equals 1 USD. 

Stablecoins such as USD Coin or Tether earn the respect of regulators worldwide through their mandates of maintaining a 1:1 peg with the US dollar. Despite continuous money printing and the bear markets of 2022, their pegs are holding steady. 

Yet you’d be correct if you thought: How does this solve the inflation problem? 

This is the second goal underpinning stablecoins: to remove the reliance upon fiat currencies and establish, permanently, a way to eradicate high inflation. It’s easy to forget inflation, but what we all must not forget, is that it hurts most those in the lowest income brackets. 

After all, it may be better to limit market intervention when v-shaped recoveries only lead to further downturns down the road. 

Centralization, Central Banks, and Transfer Fees

The fiat world is not without issues. Central banks and regulators can raise concerns concerning crypto’s role in illicit activity. However, that narrative is outright false

The true narrative suggests that the US dollar is used for illicit purposes far more than Bitcoin. Cryptocurrencies like Bitcoin operate through a blockchain, or a public register of all transactions. While seemingly countless transactions happen daily, any user’s name could ultimately be retrieved. 

On the other hand, cash transactions effectively eliminate “tracing.” This remains common knowledge. 

Centralization and Central Banks

During times of market stress, analysts and executives alike seemingly stay glued to their screens, fixated upon the words of the current central bank leader. In the USA, we have the Federal Reserve (“the Fed”). In the EU, we have the European Central Bank (“ECB”). 

As the Fed is the bellwether leading the G7, let’s focus upon its asset purchases. In this context, asset purchases translate to “printing” new money by lending money (generally for free) which did not yet before exist. These purchases grew from less than 1 trillion USD in 2008 to 9 trillion USD in 2022. 

While this was to encourage a recovery following the global financial crisis of 2008 and altruistically help people get back on their feet, there is a catch-22. In fact, there is always a catch-22 when the financial markets are pushed one way or another away from their natural ebb and flow. 

This translates into a bear-defying 26% return for the S&P 500 in 2021, or when the coronavirus pandemic struck. In other words, if you did nothing for your portfolio that year, you likely would have earned good money, better than many “normal” years. 

However, we’re feeling the sharp downside today through inflation and the opposite knee jerk reaction of global bear markets. As that comes, we see how the words (read: “commentary”) of less than a handful of central bank chairs dictate the savings and wellbeing of millions. 

Transfer Fees

Historically and somehow today, the cost of sending an international wire transfers ranges anywhere from 30 USD to over 100. While the exact cost depends upon your bank, you get the point. 

Why should it cost so much for you to send your money? 

And here lies only one part of stablecoins’ disruptive potential. Tether, intended only for large-scale business transfers of pegged USD coins, charges 0.1%. USD Coin showcases withdrawal fees as little as 2.0 USDC, or USD.

Further, select blockchains are working on zero transfer fees

How Stablecoins Are Shaking It Up

The incessant rise of stablecoins has forced regulators to seemingly accept their worldwide adoption. 

In short, they’re:

  1. Eliminating transfer fees for international or domestic transactions.
  2. Removing the need for banks or similar intermediaries.
  3. Holding their pegged currency values regardless of market downturns.
  4. Vastly improving crypto-crypto liquidity, in addition to crypto-fiat.
  5. Establishing favorable crypto interest from regulators worldwide. 

Through staking, often returning yields greater than 5%, users deposit or “lock” their stablecoins for use by protocols. Each protocol is different, although they may be separated into categories according to their utility. One example is establishing liquidity for crypto-crypto or crypto-fiat trading pairs. 

Courtesy of Whiteboard Crypto

Not only does this yield far surpass a typical “savings” rate of 0.10% or less, it removes the centralization inherent with broker-dealers. These are a limited group of major institutions providing liquidity to popular trades across currencies and asset classes. 

For example, there are now several leading brokers catering to everyday retail cryptocurrency or stablecoin investors regardless of geography. 

Mass inclusion, democratization, and advancement through technology remain the central pillars of blockchain technology. They’re the pillars of stablecoins as well. 

Disclaimer: The author of this text, Jean Chalopin, is a global business leader with a background encompassing banking, biotech, and entertainment. Mr. Chalopin is Chairman of Deltec International Group,

The co-author of this text, Conor Scott, CFA, has been active in the wealth management industry since 2012, continuously researching the latest developments affecting portfolio management and cryptocurrency. Mr. Scott is a Freelance Writer for Deltec International Group,

The views, thoughts, and opinions expressed in this text are solely the views of the authors, and do not necessarily reflect those of Deltec International Group, its subsidiaries, and/or its employees. This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service, or offering. It is not a recommendation to trade. 

What Should Stablecoin Regulation Look Like? 

We’ve previously covered the basics of stablecoins and why fiat-backed stablecoins are winning over regulators. Yet that begs the question: what should stablecoin regulation look like? 

The foremost goal of a stablecoin remains to provide stability. Like with any traditional security, the regulator keeps a strict adherence to the primary intention of that asset. An equity comes with full and fair disclosure of the underlying company (SEC), while derivative trading should occur under optimal market conditions (NFA). 

Yet the USA, home to the most active stock exchange in the world (NYSE), maintains no such regulator for stablecoins or for any tokens at all. Similarly, the EU and Japan fail to demonstrate any form of current, effective stablecoin regulation. 

Meanwhile, the market capitalization of Tether grew from less than 1 million USD to over 66 billion USD in less than six years. Tether currently sits as the third largest cryptocurrency in the world, following Bitcoin and Ethereum.  

This article dives into the inevitability of stablecoins, their impending regulation, and what exactly that regulation should look like. Let’s get to it.  

Why Do We Need Stablecoin Regulation? 

Following the S&P 500 and Nasdaq bear markets of 2022, cryptocurrencies–a vanguard asset class–took a turn for the worst as investor sentiment plummeted. Inflation skyrocketed to new highs of a generation, recently surpassing 10% in Spain or 8.5% for the USA, as major stock indices fell by 20% or more from their last highs. 

Stablecoins, like the bonds of last century, seek to preserve value and purchasing power (i.e, USD) during times of stress like these. 

Fiat-backed stablecoins, such as Tether and USD Coin, succeeded in doing just that. By keeping an equivalent amount of US dollars to back, 1:1, the amount of tokens in circulation, they maintained the respective values of their stablecoins–1 USD. 

Algorithmic stablecoins, however, have a history of failing. Their intention was both noble and innovative as they strove to remain independent of fiat currencies, their inflations, and their high transfer fees. However, an arbitrary algorithm relying upon normally operating markets and standard arbitrage (“buy low, sell high”) cannot maintain its mandate of stability. 

Most recently, we saw TerraUSD’s value crash from 1 USD to a few cents. Unfortunately, this is nothing new in the world of algorithmic coins. Yet it did shave off 40% from the total value of cryptocurrencies dedicated to “decentralized finance” protocols (programs). Maintaining an arbitrage is simply one example of a protocol. 

Regulators worldwide then caught on that they need to catch up with private entrepreneurship, for market participants are getting involved with or without them. 

Stablecoin Regulation, Coming Right Up

Three major economies have agreed to or are planning imminent stablecoin regulation: the EU, the USA, and Japan. 

In June 2022, the EU Council agreed to a general regulatory framework for “crypto-assets” and their service providers. This lengthy agreement both acknowledges the ever-growing importance of all cryptos and provides five essential upgrades to its markets:

  1. Consumers shall receive protection in the event service providers lose their assets or their digital wallets
  2. Relevant actors shall declare their environmental footprints
  3. Stablecoin holders shall be entitled to claims at any time and free of charge by issuers (withdrawing cash for fee, 24/7/365)
  4. Stablecoin service providers shall maintain ample fiat reserves at all times 
  5. Crypto-asset service providers will need an authorization to operate within the EU

In April 2022, Sen. Patrick Toomey of Pennsylvania introduced the Stablecoin TRUST Act to the US Senate. While defining fiat-backed stablecoins as “payment stablecoins,” it largely echoes the spirit of the EU’s framework. Further, it maintains that a bank-centric or traditional regulatory approach is not best suited. Instead, it implies a holistic approach. 

Also in June 2022, Japan’s parliament passed a bill defining stablecoins as digital currencies, mandating links with the yen and demanding the consumer right of always redeeming stablecoins at face value. 

But, What Should It Look Like?

Regulators generally have rejected algorithmic stablecoins and anything not linked to fiat. While they very likely cannot reject Bitcoin nor Ethereum in the future, they are clearly tabling that for post-stablecoin. 

In other words, fiat-backed stablecoins make easy targets since, while they’re promoting instant and feeless transfers via blockchain technology, they’re not eliminating the use of fiat. 

As the EU does have an unofficial reputation for covering even the most stringent details in the hopes that their regulation is followed elsewhere, we closely examined their regulatory framework–dubbed “MiCA,” or Markets in Crypto-Assets. We found five points, and that any final piece of legislation should: 

  1. Not limit transactions. If a theoretically unlimited amount of US dollars can be exchanged for euros within the eurozone, then a USD-backed, 1:1 should receive the same treatment. 
  2. Not block out or disadvantage other viable stablecoins. We feel that commodity-backed stablecoins, such as gold-backed, could come to popular fruition in the near future. Any final regulation should keep itself open to such coins.
  3. Incentivize further private innovations. Tether could not have experienced such incredible growth unless they struck the right cord with instant, global, feeless transactions. 
  4. Demonstrate or outline how retail banks can provide stablecoin-fiat exchanges. This not only provides regulators with valuable data, but ensures a controlled market while maintaining the advantages of stablecoin.
  5. Ensure that fiat-backed stablecoins are accounted for as cash in balance sheets, even if technically “intangible assets.”

The Bottom Line

Stablecoin regulation presents itself as an absolute necessity, not because of a recent downturn, but because of a much longer period of incredible growth.  

Perhaps, regulators should have acted sooner and remained in tune with the private sector which they so regulate, but at least they did act. Traditionally, regulator involvement meant fines and hard rules. 

However, in the case of stablecoins, they bring added legitimacy, permanency, liquidity, and ample consumer protections. Stablecoin regulation cements stablecoin’s future. 

Disclaimer: The author of this text, Jean Chalopin, is a global business leader with a background encompassing banking, biotech, and entertainment. Mr. Chalopin is Chairman of Deltec International Group,

The co-author of this text, Conor Scott, CFA, has been active in the wealth management industry since 2012, continuously researching the latest developments affecting portfolio management and cryptocurrency. Mr. Scott is a Freelance Writer for Deltec International Group,

The views, thoughts, and opinions expressed in this text are solely the views of the authors, and do not necessarily reflect those of Deltec International Group, its subsidiaries, and/or its employees. This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service, or offering. It is not a recommendation to trade. 

How To Create An NFT: A Step By Step Guide

With the increase in popularity of cryptocurrencies and blockchain technologies, now a global phenomenon, many investors include them as part of their investment portfolios. Non-Fungible Tokens have also increased in their prominence.

We have previously discussed what NFTs are: one-off tokens built on blockchain tech, representing various rare and unique items in both the virtual and real worlds, such as digital art, virtual real estate, and collectibles like sports cards. 

Many investors, traders, and collectors have both earned and lost a lot of money with NFTs–and with the stories seen in the media on a regular basis, creators and other artists are now making money from this new digital media. Its growing popularity is prompting many to wonder how they can create NFTs and join this ever-increasing club of digital artists.

This article discusses the benefits NFTs provide to an artist, answers some questions about the space, and gives you a simple guide to produce an NFT of your own. 

Why Create an NFT?

Historically, artists have sold works and have not been the beneficiaries of any future appreciation. However, NFT art is different. Artists can gain from the creation of NFTs in three specific ways. 

A Less Expensive Global Market. Because NFT art sales are generally conducted online via peer-to-peer marketplaces, an artist does not have to spend money for an auction house or a gallery.

Lifelong Royalties. NFTs can be coded so that the original artist not only makes money when they sell their digital art the first time, but they can keep earning with each subsequent sale of the token. This is generally a rate of between 2.5-10% of the next sale’s price, giving the artist a lifelong source of revenue. 

An Authentic Verifiable Chain of Provenance. Though NFTs are famous for being “right-clicked saved as,” the valid owner of the art is the token holder at the time. Once part of the blockchain, this digital ownership certificate is considered authentic. The current owner, their acquisition price, as well as the previous owners and prices paid, are known. This results in market transparency not seen in the art world before. 

Making an NFT, Step-by-Step

Creating an NFT now only involves a few steps, with the main part of the creation process done through a marketplace. 

  1. Select an NFT Marketplace

There are generally two types of marketplaces that you can use to create your artwork in NFT form. 

Curated. This type of marketplace only allows authorized artists to create (or mint) their digital tokens.  Curated marketplaces will focus on high-quality art, not simple low-quality collectibles. is a famous curated NFT marketplace. Their transaction fees are higher, and the royalty percentage on secondary market transactions that can be programmed into the artwork is lower as well (usually a maximum of 5%). 

Self Service. The more popular is self-service, or peer-to-peer marketplaces allowing any artist access to create NFTs with whatever they like. Artists can create a token with an image, video, or audio file, and set the royalty percentage as they wish. Unfortunately, being open, there are imitators and fraudsters that will use similar images and art to gain from a famous self-service platform artist. is the most popular marketplace for NFTs. OpenSea has risen to popularity, becoming the largest platform, because of its ease of NFT creation and extensive catalog. is another self-service NFT platform. There are several to choose from.

Once your desired platform is chosen, you will need to open an account on that platform. We will be using for our choice, but the specifics for others are very similar. 

  • Create a Digital Wallet

You must start by setting up a digital wallet that will store your cryptocurrency and your NFTs. In most cases, you will have to choose ETH, the native token for Ethereum, but other cryptos can be selected for some platforms. ETH is the only choice for the NFT creation process on and has the most buyers and sellers of NFTs on any platform. 

It helps if you already own some ETH because NFTs created on the Ethereum Blockchain will use ETH to pay for the “gas” (read: transaction) fee needed to list the token you create. recommends using the MetaMask cryptocurrency wallet extension for the Google Chrome browser. With this wallet/extension, you can purchase a sufficient amount of ETH needed to mint your NFTs. 

If you already have another supported crypto wallet with ETH, you can use it, or create a Metamask wallet and transfer it to the Metamask wallet. The gas fees will range from $15 to $200 in ETH.

  • Build your Digital Collection

You are not quite creating the NFTs yet. On the interface of your OpenSea account, there will be a MyCollections tab. This is where you store your gallery of digital art. 

You will need to customize each collection, entering a name, writing a description, and then uploading a display image. This is the foundation for displaying your artwork once you have created them. 

  • Create Your Token

Once your collection is finalized, you will begin the process of creating an NFT. Start by clicking “Add New Item” to your collection. The following will appear.

You can see that several types of digital media can be uploaded: images (JPG, PNG, GIF), Audio (MP3s), and 3D files (GLB), with a max size of 100MB. You will then supply a name for the token. 

You can choose to mint an infinite number of tokens, but they must be done one at a time. You should note how many editions of that token you wish to mint as well.

Editions. This is a token with multiple copies of the same digital media. You will have edition numbers that differentiate the tokens. For example, #1 of 500 would generally be more desirable than #346 of 500. 

Stand Alone. This is a one-of-a-kind token.

You then add properties (date created, etc.), levels, and relevant stats, which will enable potential buyers who are exploring your collection to filter the artwork, including social links, an image, an art description, and a name. Once complete, you will click “Create” to add this NFT to the blockchain. This is where you will need your ETH to pay for the gas fees.

From here, you can choose the payment tokens you will accept for your new NFT, and you will also designate the percentage of royalty you receive for any subsequent purchases. 

  • List for Sale

Now that your NFT has been created, list it for sale.  Sales can be earned either through an auction or a fixed price listing. If this is your first time selling an NFT, you will have to pre-pay for the gas fee. 

  • Promote Your NFT

The final step is to promote your NFT. Sellers who don’t promote will not get a good price for their art, and you need to think of this as a business. Sellers with a substantial fan base do better. Therefore, you should share your direct link to any potential buyers through your fans on social media. 

No Coding Experience Necessary

With the tools discussed previously, you don’t need to have any coding knowledge to create an NFT.  You can easily create one with OpenSea in just a few minutes. They have experience helping beginners and will set you on the right path to the successful creation of your first NFT. If you can use the internet, you are likely skilled enough to make an NFT with their step-by-step process.

Are NFTs and Cryptocurrencies the Same?

No, they are not the same, but they are cousins. NFTs and cryptocurrencies are digital tokens. However, NFTs are one-offs, all completely different and not interchangeable; one piece of art is not the same as another, even if they are numbered copies. A cryptocurrency token is the same and has the same value as every other cryptocurrency of the same type. A bitcoin is a bitcoin, like a dollar is a dollar. 

What Risks do NFTs Have?

Significant Speculation. NFTs have as much or more volatility as cryptocurrencies. They are highly speculative and can both produce and eviscerate profits in short order. There is a risk of losing funds with hyped, and pump and dump NFTs.

High Gas Fees. The rates for gas fees can change drastically on the Ethereum blockchain. This has an effect on the NFT’s price. Exorbitant fees can cause the NFT’s value to decrease, losing buyers and resulting in losses for the creator. 

Competitive Market. There are many artists on the larger platforms, and your artwork may be hidden among the abundance of choices. This is why a solid social media presence can move you to the forefront, leading to profits from NFT sales. 


Being a new market, NFTs have significant potential for growth. However, they also come with a familiar amount of risk and volatility.

The market has grown significantly over the past few years and is becoming more established with the NBA and many other organizations embracing NFTs, but it may be a while before the volatility reduces. If you are going to create a series of NFTs, watch the gas fees and make sure that your social media marketing behind them is already in place so you have the most success. 

Disclaimer:  The author of this text, Jean Chalopin, is a global business leader with a background encompassing banking, biotech, and entertainment.  Mr. Chalopin is Chairman of Deltec International Group,

The co-author of this text, Robin Trehan, has a bachelor’s degree in economics, a master’s in international business and finance, and an MBA in electronic business.  Mr. Trehan is a Senior VP at Deltec International Group,

The views, thoughts, and opinions expressed in this text are solely the views of the authors, and do not necessarily reflect those of Deltec International Group, its subsidiaries, and/or its employees. This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

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