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Verge


The Ultimate Guide

Why is Everyone Talking About Verge?

When Bitcoin came onto the scene in 2009, few could have foreseen the incredible growth that would follow over the next decade. Hundreds of new cryptocurrencies have been built upon the foundations created by Bitcoin, each with their own specific niches and specialties.

Verge was designed to give users TOR level privacy and security while still allowing the cryptocurrency to be practical for everyday use. A range of user-friendly but powerful tools has allowed Verge to experience impressive growth, especially as traders have begun to take interest in privacy coins.

5 Interesting Verge Facts You Might Not Know

  1. Verge was founded as a Dogecoin fork in 2014 under the name of DarkDogeCoin.
  2. There was no “instamine” event and the developers had to purchase coins using their own money, like everybody else.
  3. Verge is a completely open source project and anybody can scrutinize the code behind the project on Github.
  4. Verge uses Simple Payment Verification (SVP) to help keep transaction times down to 5 seconds.
  5. In December 2017 Verge experienced explosive growth of over 1000% on the back of a tweet made by John McAfee on 13th Dec.

Data from U.S. Equity Research estimates the cryptocurrency market is expected to grow at a 32% rate by 2023.

According to RnRMarketResearch: Growth is propelled by the benefits of compliance-free peer-to-peer transaction, cross-border remittance transfer, increase in use cases, volatility in the stock market, fluctuating monetary regulations in different countries, transparency, and immutability of the distributed ledger technology and benefits such as faster transaction and reduction in total ownership cost.

On the back of a tweet by John McAfee, Verge saw a huge surge in value as buyers jumped on his recommendation.

A Brief History Of Verge

Verge was founded in 2014 under the name DogeCoinDark. This was a fork of DogeCoin and was designed to provide an anonymous alternative to Dogecoin. Despite having a small devoted community DogeCoinDark struggled to acquire popularity.

In 2016 the decision was eventually taken to rebrand the currency under the name Verge. This was done to help differentiate the currency from other so-called “dark” coins as Verge’s creators and its community felt that they were not getting the recognition that they deserved. This rebrand came with Verge’s own take on a white paper, the “Black paper” written by Cryptorekt (a pseudonym) in 2017. This document detailed how Verge planned to go above and beyond the achievements of DogeCoinDark by offering features such as the Wraith Protocol.

In late 2017 Verge saw an increase in value of over 1000% as it became caught in a massive cryptocurrency Bull market.

What is Verge?

Verge sits alongside other so-called “privacy coins” like Monero, Pivx, and Zcash. The creators of Verge want to use their currency to take blockchain technology and make it accessible to the everyday user. They also want to give users the option to protect their privacy and prevent outside entities from tracing their transactions. There are a number of privacy coins available at the moment but what makes Verge special is the team’s commitment to transparency and usability.

One of the most interesting features of Verge is that the cryptocurrency’s blockchain features both TOR and I2P integration. Both TOR and I2P are effective tools to help anonymize their users but they work in slightly different ways:

TOR: “The Onion Router” works by directing a users traffic through a worldwide overlay network consisting of more than seven thousand relays. The package is encrypted and is then sent on to another relay that can only read enough information to send and receive the package. This is then re-wrapped and sent on to the next relay until the package has reached its destination. At this point, the final relay can decrypt the information held in the package but will be unable to pinpoint the source I.P. This grants the user’s anonymity.

Diagram - How a TOR transaction occurs
A TOR transaction works as a series circuit (Via Verge Blackpaper)

I2P: Like TOR, I2P transactions are designed to shield a users I.P. address and activities from prying eyes. Unlike TOR, I2P uses packet based routing rather than circuit-based routing. This means that the service is able to move around a congested network and maintain a more secure service at times of heavy load. When users send information to each other, the sender and receiver both build a series of tunnels. The information is then randomly sent through these tunnels until it reaches its destination. In essence, I2P is a large P2P network.

Diagram to show how an i2p transaction occurs
2P transactions are designed to work as a network within the internet (Via Verge Blackpaper)

Verge uses both of these protocols and they are one of the only cryptocurrencies to have access to an Android wallet with built-in TOR and I2P options. The approach taken by Verge is interesting because it allows them to maintain an open transparent blockchain while also ensuring that users transactions are private. The will allow traders and users to assess the health of the Blockchain without violating anybody’s privacy.

The creators of Verge are rolling-out the Wraith Protocol. This will provide users with a “toggle” option where they can decide to either allow their transactions to be publically viewable on the blockchain or to hide them completely. The Wraith protocol will use a combination of Key agreements, Stealth addresses, and Tor + SSL integration in order to protect its users. These are fairly technical concepts so if you’re interested in finding out more I would recommend looking at page 8 of the Dark Paper.

The thing that makes Verge really stand out from other privacy coins is the team’s focus on transparency. The Cryptocurrency was not pre-mined or part of an ICO and the entire project is available on Github. This is in sharp comparison with a cryptocurrency like say, Dash, which has been plagued with controversy surrounding the insta-mine event during its launch.

In terms of usability, Verge is already offering Electrum powered wallets on every platform including Linux. The team is planning to further enhance the utility of XVG with the release of the RSK platform. This will allow Verge to follow in the footsteps of NEO and Ethereum and implement smart contracts.

Verge vs Bitcoin

How does Verge compare to Bitcoin? What are the key differences to Bitcoin? See below for our head-to-head comparison:
 Verge (XVG)Bitcoin (BTC)
PurposeFocus on privacy. Practical for everyday use.Decentralized digital currency
Founded20142009
FounderSunerok (psudonym)Satoshi Nakamoto (alias)
Market CapOver $2 billionOver $250 billion
Current Price
All time High$0.28 (December 2017)$19,908 (December 2017)
All Time Low$0.000004 (Nov 2014)$0.06 (July 2010)
How long did it take to hit $100?Verge hasn’t yet hit $100 although it did experience an increase of value of over 1000% in a week in December 201751 months
Notable SupportersJohn McAfeeJeff Currie (Goldman Sachs)
Peter Theil (Venture capitalist)
Christine Lagarde (IMF)
Marc Andreessen (Early internet Pioneer)
Supply Cap16,555,000,00021,000,000
Initial DistributionMiningMining
Mining MethodGPUASIC
Consensus MethodProof of workProof of work
Network Hash Rate*4.9 Th/sOver 40 BTC per hour
Difficulty increaseDifficulty is adjusted based on hashrate with a 30 second target timeEvery 2,016 Blocks

How is Verge Made?

Verge is created in much the same way as other cryptocurrencies. Rather than being printed by a bank or government XRP is made by its community.

Like most cryptocurrencies, Verge is based on a decentralized ledger of all transactions, called a blockchain. This blockchain is secured through a consensus mechanism called Proof of Work (POW). A miner uses their computer in order to solve complicated equations. Once the equation is solved a new block is added to the chain and the miner is rewarded with some Verge.

These equations are defined by an algorithm such as Scypt or SHA-256. The majority of cryptocurrencies only use one algorithm. Different algorithms are more effectively “solved” by different kinds of hardware and this has lead to the rise of specialized machines called ASICs that are designed to mine a specific cryptocurrency. These expensive machines can give large mining groups undue influence over a cryptocurrency and prevent less well-equipped users from making a profit.

In order to counter this Verge uses five different algorithms; Scrypt, X17, lyra2Rev2, Myr-Goestl and Blake2s. Each of these algorithms favors a different hardware setup and so utilizing all five allows for a wide variety of hardware to be able to effectively mine Verge in order to ensure a more equal distribution of newly created coins.

What is the Price of Verge?

 

What Drives The Price Of Verge?

Prior to its rebrand, Verge never really managed to make much headway, its value stubbornly stuck below even a single cent. Post-rebrand XVG has managed to do much better for itself and has seen significant growth. Given the relatively short history of Verge’s growth, it is difficult to pin down specific growth factors however the price outlook for all cryptocurrencies are all governed by a similar set of rules.

The most significant price driver for Verge so far has been media attention, or more specifically, social media attention. A tweet by John McAfee mentioning Verge saw the value of XVG skyrocket.

The value further shot up thanks to a screengrab of an alleged conversation between Mr. McAfee and a @harro257 where John McAfee said that he believed that Verge could go as high as $15 within six months. Mr McAfee later denied these claims, potentially contributing to the dip that followed shortly after.

This phenomenon is fairly common and McAfee’s recommendations sometimes result in day traders buying up large amounts of the currency and then selling it shortly after, hoping to catch the crest of the wave. This tactic is viable however you are competing with large numbers of users so it can be difficult to sell at the most profitable moment and if you miss the peak you might even lose money.

You should also watch out for the introduction of new features. When a cryptocurrency adds new features it can help to increase media attention and user interest. In the case of Verge, you should keep an eye on the RSK platform and smart contracts. This will increase the utility of Verge and traders and users will probably take note.

Another major factor will be secondary partnerships, particularly retail. Verge aims to take the blockchain into everyday use which means that it wants merchants to accept it as a payment method. Verge already have a handful of vendors willing to accept payment in the cryptocurrency, although there are no major retailers yet. If Verge do manage to gain a partnership with any major merchants then you should expect a sharp spike in value.

What Is The Price Outlook For Verge, And What Do Experts Say On Prices?

As with most cryptocurrencies the short term price outlook for Verge can be described in one way. Volatile. The Cryptocurrency market is still young and therefore still unstable. You should expect fairly big peaks and troughs in the short term.

In the medium to long term Verge has a positive price outlook. It has experienced fairly explosive growth that self corrected and as more features are added to the blockchain and you should expect the trajectory to continue upwards.

Experts are quite bullish on Verge and privacy focused cryptocurrency in general. The most obvious example is McAfee’s recent tweet however other experts have voiced their support for privacy based cryptocurrency

Manfred Karrer – Developer and Founder of Bitsquare

Manfred Karrer Bitsquare
Manfred Karrer – Bitsquare via youtube

“I expect three things. One, regulations on cryptocurrency exchanges will come. Two, the war on cash, gold and cryptocurrencies will accelerate. And three, privacy-protecting technologies like Monero and Zcash will elevate in importance.”

Manfred Karrer

John McAfee stated that while he didn’t believe the price would rise to $15 he did say:

Given the increasing risk of cryptocurrency legislation in the wake of Chinese and South Korean moves to regulate the market it shouldn’t be surprising that experts think privacy focused coins will do well. If Bitcoin holders fear that they will risk losing access to their funds then they will naturally look to transition their assets to anonymous cryptocurrencies like Verge.

Verge Market Sentiment

We’ve gathered data from leading exchanges to determine the general feeling in the Verge market. Its calculation is simple; using data from the exchanges listed below, we gather buy and sell volumes for a given time period and weight this against the total transaction volumes.

Buy/Sell Sentiments:
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List of Verge exchanges

  1. Bitrex
  2. Bitsquare.io
  3. C-Cex
  4. Litebit.eu
  5. SouthXchange
  6. NovaExchange
  7. Cryptopia
  8. Coinspot
  9. Blocknet
  10. ExchangeD.I2P
  11. Nexchange
  12. Coinwale
  13. Binance
  14. HitBTC
  15. UpBit
  16. Changelly
  17. NakamotoX
  18. CoinSwitch
  19. Coin2001
  20. CryptoBridge
  21. ChangeNow

3 Reasons to Invest in Verge

  1. Innovative privacy protection
  2. Transparency and openness
  3. High supply and low transaction costs

Innovative Privacy Protection

A number of coins offer anonymity but Verge takes a unique approach by combining TOR and I2P. This allows them to take advantage of two of the best anonymizing tools out there. The Wraith protocol will also offer togglable privacy options to give more power to everyday users to use blockchain technology.

Transparency and Openness

Many blockchain projects are either owned by companies or are part of an Initial Coin Offering. Verge was created as a collaborative open source project and this original spirit is still going strong. The source code is available for anybody to scrutinize online and the developers didn’t take any initial coins, they bought XVG with their own currency. This focus on transparency is good for traders because you know that the community will help to keep the developers honest and if you are so inclined you can view the source code of the product you are investing in.

High Supply and Low Transaction Costs

Verge has a huge supply cap of 16.5 billion, compared to Bitcoin’s 21 million coins. While such a large number of coins might seem counterintuitive, it is part of XVG’s strength. This large supply cap is designed so that people can trade without having to pay large transaction fees, as is currently the case with Bitcoin. It also helps to prevent market manipulation as a single user would have to own a huge amount of Verge in order to have an impact on the market.

2 Reasons Not to Invest in Verge

  1. Low market share
  2. The most promising features are not yet implemented

Low Market Share

Privacy-focused coins will tend towards a monopoly. This is because it is easier to hide your transactions when there is a large volume of transactions going on. Unfortunately for Verge, it is still a relatively minor competitor in the privacy coins race and its market share is dwarfed by the likes of Monero. This may mean that Verge will struggle to gain major adoption as privacy-focused users stay with the biggest cryptocurrency

The Most Promising Features Are Not Yet Implemented

Verge has a lot of potential but for the moment it is just that, potential. Developers in every sector have made grand promises and failed to deliver. While Verge is excellent in its current iteration, a failure to implement features such as RSK and smart contracts could lead to a loss of faith from traders and the community.

How to Buy Verge

So you’ve weighed up the pros and cons and decided that you want to buy Verge? The next step is figuring out how to get hold of some.

Acquiring Verge isn’t as simple as acquiring Bitcoin, Litecoin or Ethereum. If you want to buy one of the “Big three” it is as simple as logging onto an exchange and purchasing some tokens with fiat currency. Verge, on the other hand, has to be traded for other cryptocurrencies.

The easiest way to do this is to trade BTC for XVG.

Most users trade Verge using an exchange like Bitfinex. This involves buying cryptocurrency with fiat currency and storing them in a virtual wallet. While this approach is common it carries a number of risks and it’s important that you do your research and select a reputable exchange.

There aren’t many ways to buy Verge as it’s still a fairly new currency and isn’t listed on the larger exchanges. This means that you’ll first have to purchase Bitcoin and then go to another exchange to trade your BTC for XVG.

Coinbase

If you want to acquire Bitcoin to trade for Verge then one possible choice is an exchange called Coinbase. There are several other choices but Coinbase is one of the most beginner friendly. It comes with a large number of currency pairs and you even have the option to buy BTC using your credit or debit card. Coinbase has a competitive fee rate. Purchasing BTC will typically result in a 3.99% fee if using a credit or debit card and a 1.49% fee for most kinds of bank transfers.

Coinbase requires your ID and address when registering. This kind of verification is standard procedure and considered best practice for many exchanges. It’s designed to prevent the exchange from being used for money laundering and other criminal activities. Privacy-conscious traders should consider a different exchange.

LocalBitcoins

Rather than buying XVG directly you can first buy Bitcoin through a peer to peer Bitcoin Exchange that doesn’t require an ID. One of the best options is LocalBitcoins which allows users to buy Bitcoin with almost any currency.

Once you have the Bitcoins you will then be able to trade these for Verge at another exchange. If you choose to use LocalBitcoins make sure that you get other users thoroughly. There is a review function and you should make sure you use it. Some unscrupulous users have been known to scam new traders. If you get a bad feeling or see poor reviews it is generally best not to make the trade.

Binance

Binance is an exchange that is focused on Chinese and English language users. It has almost all of the major coins as well as some of the smaller cryptocurrencies. Binance is a good choice thanks to its relatively low trade fee of 0.1% and minimal withdrawal fees.

The process can be a little daunting for new users but it is not as complex as it looks at first glance. One you have made your account the first step will be to go to the ‘deposit’ section and acquire your deposit address (it will be a string of numbers and letters). Keep this, you’ll need it in a moment.

Bitnance deposits and withdrawals
Bitnance deposits and withdrawals

Ensure you only transfer to your exact deposit address, otherwise you risk losing your currency.

Go back to your coinbase account and find your Bitcoin wallet. Click send and paste in the exact address provided to you by Binance. Click send and wait 40-60 minutes depending on the amount of activity on Bitcoin. Once your funds are verified then your Binance wallet will be automatically updated.

Now you can finally trade your Bitcoin for Verge. Go to the exchange tab and click basic. Next search for XVG in the box on right, click “market” in order to buy Verge at the current market price and place your order. Once this goes through you’ll have finally acquired your first XVG tokens.

Bitnance Exchange
Bitnance Exchange

You can also chose to buy at Limit which will allow you to specify the price you want to buy at, rather than just buying at the cheapest currently available.

Keep in mind that exchanges are not safe and you will need to be serious about your security. Always enable two-factor authorization and avoid keeping all of your coins in a single wallet. Also, remember that you should never leave your coins in an exchange wallet unless you are planning to exchange them. The best way to secure your cryptocurrency is in a hardware wallet or by putting them in cold storage.

Cold storage involves keeping your cryptocurrency in an offline wallet that only you have access to. Remember that you are entirely responsible for your own security. If you don’t own the keys to your wallet, you don’t own your tokens. You will also need to take extra care to ensure that your computer is secure and password and protected. Any breach could result in your coins finding their way into the wallet of a hacker.

Managing your own Verge is not easy. Not only do you have to negotiate the exchanges but you also need to take extra care to keep your computer secure. You need to be wary of phishing scams, viruses, and other risks. You also need to keep very careful track of your wallet’s access codes. If you lose those your Verge investment could end up trapped in a wallet that you can’t access.

To make matters worse there are risks that you can’t control. When you use an exchange you are relying on them to protect you and your verge. The problem is that they sometimes fail to do this properly.

The most notorious example is the MtGox incident. Back in 2013, MtGox was by far the biggest Bitcoin exchange. It controlled over 70% of the market. The cracks began to show in May of 2013 when FinCEN seized their accounts. This led to users losing their ability withdraw USD from the exchange. Then to make matters worse MtGox was hacked. The attackers got away with around $500 million and MtGox was forced to file for bankruptcy.

Sadly these problems are not a thing of the past. In August 2017 Bitfinex was hit by a similar hack. The attackers emptied random wallets and stole around $72 million worth of cryptocurrency. In order to prevent individual users from losing everything, Bitfinex decided to spread the losses, reducing everyone’s account balance by 37%.

With all these potential risks you are probably asking yourself whether there’s a safer way to trade Verge.

Unfortunately, the answer is no, not at the moment.

However, there is a safer way to trade many other cryptocurrencies by using a regulated broker such as Plus500 (CFD Service. 80.6% lose money). The Plus500 platform offers the ability to trade contracts for difference (CFDs) for a wide variety of cryptocurrencies are they are regularly adding new currencies to their list.

How To Trade In Cryptocurrency CFDs

Our preferred method is to not buy Cryptocurrencies at all and instead, trade Contracts for Difference (CFDs) through a regulated broker.

A CFD is a contract between you and the broker. Instead of directly buying Cryptocurrencies, you would buy a CFD and take a short or buy position. If the market moves in your favor then you will receive money based on your CFD. If it moves against you then you will have to pay. This allows you to take advantage of Cryptocurrencies without ever having to take on the risk of owning a single token.

There are lots of brokers out there and picking the right one can be a challenge. The first rule when deciding how to get Cryptocurrency CFDs is to always use a regulated broker. These brokers have to follow a strict code of conduct which makes them much safer than ordinary unregulated brokers. You also need to compare the different fee structures and you should take advantage of the free demo accounts many brokers offer before you commit to a platform.

Trying to find the best-regulated broker can be a daunting task. Thankfully we are here to help and have already done the heaving lifting for you. After investigating the available options we’ve found that for the vast majority of traders, Plus500 is probably the best way for you to trade cryptocurrency CFDs.

Plus500 – Our Top recommendation for trading in Cryptocurrency CFDs (CFD Service. 80.6% lose money)

Plus500 is a safe and secure way to trade Cryptocurrency CFDs.

Plus500 subsidiaries are individually regulated by the following agencies; Financial Conduct Authority (FCA), Cyprus Securities Exchange (CySEC), Australian Securities and Investments Commission(ASIC).

See the table below for exactly which regulator covers you in your country and what protection is offered.

RegulatorCountries CoveredProtection OfferedAdditional Protection Offered
Financial Conduct Authority (FCA)UK, Ireland and GermanyAll client funds are held in a segregated client bank accountFinancial Services Compensation Scheme (FSCS) may cover up to £50,000 if Plus500 fails.
Cyprus Securities Exchange (CySEC)Andorra, Argentina, Austria, Bahrain, Belgium, Bulgaria, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Gibraltar, Greece, Hungary, Iceland, Isle of Man, Israel, Italy, Kuwait, Latvia, Liechenstein, Lithuania, Luxembourg, Malaysia, Malta, Mexico, Monaco, The Netherlands, Norway, Oman, Poland, Portugal, Qatar, Romania, Saudi Arabia, Slovakia, Slovenia, Spain, South Africa, Sweden, Switzerland, United Arab Emirates and Uruguay.All client funds are held in a segregated client bank account
Australian Securities & Investments Commission (ASIC)Australia, New Zealand and South AfricaAll client funds are held in a segregated client bank account

How Much Does It Cost To Trade Cryptocurrency CFDs with Plus500?

Plus500 has a very competitive fee structure. Unlike some other brokers, they charge zero commission. Instead, users are only charged on the spread of their CFD trades (spreads are variable). You should keep in mind that there are premiums for holding an overnight position and you might be charged an inactivity fee if you do not use your account in a 3 month period.

Plus500 Cryptocurrencies
CFD Service. 80.6% lose money.

Plus500 also provides some of the best risk management tools out there. Not only do you have the ability to set close at loss or close at profit limits but you also have a rare and useful tool known as a trailing stop. This allows you to set your stop position to grow with the market. Using a tool like this means you can increase your profit without having to manually adjust your stop positions and if the market turns against you, you’ll still be protected. This feature is not available from every broker and it helps to cut out a lot of micromanagement.

Plus500 have gone out of their way to make their platform accessible to traders around the world. The interface is simple to understand and should help newer traders ease into trading in cryptocurrency CFDs. They also offer their platform in over 31 languages and it has been localized in 50 countries. This allows traders from all over the world to feel comfortable using Plus500.

Many of us spend a lot of our time away from our computers so another useful addition is Plus500’s mobile app. This functions very much like their desktop app and can help you trade while you’re away from the desk. One feature that we found particularly useful was the inclusion of the demo mode on the app.

Other brokers might suit traders with very specific needs but Plus500 is probably the best choice for the vast majority of traders.

Plus 500 Summary

  • Convenient access to Cryptocurrency CFD trading
  • Easy sign-up, compared to the cumbersome process of enlisting in a cryptocurrency trading exchange
  • Guaranteed execution at a fixed price, without having to wait for another trader to agree to a buy or a sell transaction
  • Allowance of credit or debit cards, a service generally not allowed on Cryptocurrency trading exchanges
  • Allowance to trade 10 or more cryptocurrency CFDs, including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and IOTA.
  • Free real-time quotes and 24/7 trading availability
  • Intuitive charting tools

No Matter Which Broker You Use, Remember That Your Capital Is At Risk

Any trade is a risk and Cryptocurrencies are a volatile commodity. When you’re considering how to buy Cryptocurrency CFDs you need to keep in mind that even using a regulated broker like Plus500 you can still lose all your capital. If the market turns against you it is possible some, or all, of your initial capital.

Trading in Cryptocurrency CFDs is the same as any other instrument. Make sure that you follow the golden rule. Only spend what you can afford to lose. If you stick to this and use a regulated broker to protect yourself then your cryptocurrency CFD trades will be off to a good start.

Start Trading Cryptocurrency CFDs Today!

CFD Service. 80.6% lose money. 

Important: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail trader accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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