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The comfort zone is where dreams go to die

Saturday, November 11, 2023

Newton, the Crypto Exchange for Canadians

Entering the world of cryptocurrency can be an overwhelming yet thrilling endeavor, laden with opportunities and risks. As a Canadian enthusiast in this digital financial realm, finding the right platform for trading crypto has been a quest that has led me to explore numerous options. Among the many available exchanges, Newton has emerged as my primary go-to platform for engaging in the exciting realm of digital assets.

My decision to use Newton wasn't hasty. It stemmed from a thorough evaluation of various platforms' offerings, as well as a keen understanding of what I sought in a cryptocurrency exchange. As a now regular user of Newton, I've encountered a multitude of reasons why this Canadian-based exchange has become an instrumental tool in my crypto journey.

One of the primary reasons I gravitated towards Newton was its simple and user-friendly interface. Newton's platform simplifies the buying, selling, and transferring process, providing an intuitive and streamlined user experience without any unnecessary clutter. The clean design and accessibility of essential features have made the onboarding process a smooth and enjoyable experience for me. Its simplicity allows for quick and easy transactions, making it an appealing option for beginners and experienced traders alike.

Newton User-Interface

Speed and reliability are essential in the fast-paced world of cryptocurrency trading, and Newton excels in these areas. Transactions are processed fairly, swiftly, and efficiently, eliminating potential delays that could affect trading outcomes. The platform's reliability, coupled with the seamless execution of transactions, has been instrumental in optimizing my trading experiences. It has afforded me the ability to capitalize on major market movements swiftly, a crucial aspect in the volatile realm of cryptocurrencies.

Security has always been a paramount concern when it comes to managing digital assets, and Newton takes this aspect seriously. The platform is built for crypto’s unique risks with security measures such as recurring penetration testing and cold storage for the majority of their assets; 80% of Newton’s assets are kept offline to limit their exposure to unforeseen issues and risks. This provides a sense of assurance and trust in the platform. However, it's worth noting that while the security measures are reassuring, Newton's status as a relatively new exchange in the market brings about an initial level of caution, despite the confidence instilled by these security protocols.

The variety of available digital assets for trading is another area where Newton has performed well. While it may not boast the most extensive selection of cryptocurrencies, it offers a diverse range, including prominent assets like Bitcoin, Ethereum, Solana, and others. This diversity provides ample opportunities for traders to explore and diversify their portfolios within the crypto ecosystem.

In my journey as a cryptocurrency enthusiast, Newton's 24/7 customer support has played a pivotal role in my overall experience. The responsiveness and helpfulness of the support team have been commendable, providing timely assistance whenever any questions or concerns arise.

Newton has been a welcoming entry point for many Canadians venturing into the crypto space, offering a secure and user-friendly platform. Despite its numerous merits, Newton, like any platform, is not without its drawbacks. In the following sections, I will delve deeper into both the advantages and limitations of Newton as an exchange, offering a comprehensive evaluation of its place in the Canadian crypto landscape. Additionally, I'll explore how a forex platform, Global Prime, may excel and be the preferred choice for specific trading needs.


Why I Use Newton to Buy and Sell Crypto

My journey into the world of cryptocurrencies led me to Newton, a Canadian-based exchange that has become my preferred platform for trading digital currencies. Newton's appeal stems from a combination of factors, most notably its user-friendly interface and the seamless trading experience it offers. Upon entering the realm of crypto trading, the sheer complexity of different platforms, digital assets, and market intricacies can be intimidating. Newton's user-friendly design and ease of use immediately stood out to me. In this ever-evolving landscape, the platform's simple layout is a breath of fresh air. It streamlines the process of buying, selling, and managing digital assets, providing an accessible gateway that is able to serve the needs of novices and veterans equally well.

Efficiency and Reliability of Transactions

The speed and reliability of transactions are pivotal aspects that contribute to a positive trading experience, and Newton excels in this domain. Transaction processing on the platform is rapid and dependable, eliminating potential lags or delays that might hinder effective trading. The platform's swift and efficient transaction execution has been crucial in seizing market opportunities promptly and responding to fast-paced market fluctuations, an integral part of successful cryptocurrency trading. Funding a Newton account via Interac e-Transfer from a connected Canadian bank account is quick and efficient. Withdrawing funds to a Canadian bank account is equally easy.

Commitment to Security

Security is a top priority when dealing with digital assets, and Newton addresses this concern by implementing several robust security measures. Consumer facing features such as mandatory two-factor authentication and corporate measures such as insured assets, institutional grade storage, as well as an in-house data security team add layers of protection to users' funds, instilling confidence in the platform's security protocols.

Access to the Most Relevant Digital Assets

While Newton might not offer the most extensive selection of cryptocurrencies, it boasts a diverse range of digital assets, including major players like Bitcoin, Ethereum, and Solana, among many others. This variety caters to different trader preferences, allowing for opportunities to explore and diversify portfolios within the Newton ecosystem.

Responsive Customer Support

In my experience, Newton's customer support team has been a valuable resource. Available around the clock, their responsiveness and assistance in resolving queries or issues have contributed to a smooth and reassuring trading experience.

My utilization of Newton for buying and selling cryptocurrencies has been underpinned by these standout features. It's important to recognize that while Newton exhibits multiple strengths, it has its limitations, which I'll explore in the subsequent sections to provide a holistic overview of the platform's performance in the Canadian crypto landscape.


Why Global Prime is Better for Day Trading Crypto

Newton, as a cryptocurrency exchange, undoubtedly possesses numerous advantages that make it an attractive platform for trading digital assets. However, when specifically considering day trading in the realm of cryptocurrencies, another platform, Global Prime, shines brighter due to its specialized tools and features tailored specifically for this purpose.

Newton's user-friendly interface, fast transaction processing, security measures, and available cryptocurrencies make it a robust choice for general cryptocurrency trading. It excels in providing an accessible and secure environment for investors to buy, sell, and hold digital assets. Nevertheless, when it comes to the specific demands of day trading, certain features of Global Prime offer distinct advantages.

Introduction to Global Prime

Global Prime, as a forex broker, is much better suited for day trading cryptocurrencies due to its experience, specialized tools, and tailored services. Day trading requires particularly swift execution, access to in-depth market analysis, and tools for technical analysis, all of which are distinct offerings of Global Prime, setting it apart from platforms designed primarily for standard crypto trading through buying and selling assets.



Global Prime's Tools and Advantages

Day trading requires rapid decision-making and execution, and Global Prime fulfills these needs efficiently. With features like access to professional-grade charting tools, robust analytics, and faster execution times, the broker significantly enhances the overall day trading experience, allowing traders to swiftly capitalize on short-term market movements.

While Newton is a fantastic platform for general cryptocurrency trading, Global Prime's specialized tools and focus on the day trading niche provide a more tailored and advantageous environment for those who seek to actively trade cryptocurrencies throughout the day. Additionally, Global Prime offers all the usual advantages of a world-class forex broker such as extremely low spreads, low trading fees, and - maybe most importantly - leveraged trading through the use of a margin account.

In conclusion, both Newton and Global Prime serve distinct purposes in the cryptocurrency trading landscape. While Newton excels in providing a user-friendly interface and a secure environment for general trading, Global Prime emerges as a superior choice for day traders due to its specialized tools, low fees, and the ability to trade on margin. Understanding your individual trading preferences and needs is crucial in choosing the platform that best suits your trading objectives.


A Note on the Drawbacks of Newton

While Newton stands as a commendable platform for Canadian crypto traders, it's essential to recognize that, like any service, it does have some drawbacks, although fairly minor in nature. In any case, acknowledging these limitations is crucial for a well-rounded assessment and understanding of the platform's performance.

Newton's Relative Newness in the Market

One noticeable drawback of Newton is its relative newness in the market. As a relatively new player in the exchange landscape, Newton might not possess the same level of reputation and trust that more established platforms enjoy. However, this drawback can be mitigated by primarily relying on the platform for trading purposes, but not as a wallet or storage solution for holding digital currencies for extended periods of time.

One of the key conclusions from the various scandals involving large crypto exchanges throughout the last few years is to never keep digital assets in a custodial wallet longer than necessary. One of the best ways to mitigate the risks associated with bankruptcies and/or corrupt individuals is to always transfer crypto assets to a non-custodial wallet as soon as possible. This helps ensure that you and only you are in full control of your assets.

Limited Selection of Cryptocurrencies

Another limitation of Newton is its somewhat restricted range of available digital assets. While it does offer the most prominent cryptocurrencies, some users might find the selection to be narrower compared to larger exchanges. To overcome this drawback, Canadian individuals seeking a more diverse portfolio can utilize Newton exclusively for exchanging cryptocurrencies to/from fiat currencies (i.e., Canadian Dollars), and then transfer those assets to a non-custodial wallet that offers swaps. This approach makes it possible to obtain and store a much broader array of cryptocurrencies than what is available for trading directly on Newton.

Operates Only in Canada

Newton's exclusive operation within Canada could be perceived as a drawback for users who wish to access the platform from other regions. While this restricts its accessibility on a global scale, for Canadian users, this focus on a local market can also be seen as a positive aspect. However, for those outside Canada, the limited accessibility remains a constraint.

Lack of External Security Audit

Although Newton implements several robust security measures, including internal security audits, it hasn't yet undergone an external security audit. This might be a concern for users who place significant emphasis on independent third-party security assessments.

As mentioned previously, one very effective way to address most of these drawbacks is to view Newton only as a gateway for buying and selling cryptocurrencies rather than a storage solution for holding them. Utilizing the platform primarily for trading purposes and swiftly transferring assets to a non-custodial wallet can offer a more secure and diversified solution for managing digital assets. To support this strategy, Newton covers the first $5 of the transaction fee on the first withdrawal to a 3rd-party wallet made in a fixed 24-hour period. On the first withdrawal of the period, only transactional fees above $5 will be a cost incurred by the user. By taking advantage of this, users can benefit from Newton's strengths in trading while mitigating the drawbacks associated with the platform's newness, limited selection, and potential security concerns.


Conclusion

In the quest to traverse the dynamic landscape of cryptocurrencies, Canadian traders often seek a cost-effective, reliable, user-friendly, and secure platform to kickstart their digital asset journey. Newton has emerged as a prominent option, offering an array of commendable features that cater to the needs of both novices and seasoned traders. Nevertheless, while it boasts numerous advantages, it's equally important to acknowledge the limitations and drawbacks that accompany this platform for a comprehensive assessment of its role in the Canadian crypto market.

Choosing the right platform for cryptocurrency trading is a deeply personal decision, dependent on individual needs, preferences, and risk tolerance. Newton serves as an excellent entry point for those stepping into the cryptosphere. Readers and potential users are encouraged to evaluate their specific trading objectives, weighing the strengths and weaknesses of different platforms. By considering personal needs and aligning them with the offerings of various exchanges, traders can make informed decisions that best suit their unique goals.


Disclaimer

There are substantial risks associated with trading and investing in securities or other financial instruments. Trading and investing in stocks, bonds, exchange traded funds, mutual funds, money market funds, and cryptocurrencies involves risk of loss. Loss of principal is possible. Some high risk investments or trading certain financial instruments may use leverage, which will accentuate gains & losses. Trading in foreign exchange ('Forex') on margin, as well as trading cryptocurrencies, entails particularly high risk and is not suitable for all people. Before you decide to trade or invest in foreign exchange, or any other financial market, you should carefully assess your objectives, experience, financial possibilities and willingness to take risks. Past performance is not an indication of future results!

Lastly, please note that the links to Newton on this page are affiliate links. If you use any of these links to register an account, you will get $25 CAD free if you make a trade over $100 CAD within 90 days of sign up. I only endorse Newton because of the positive experience I've personally had using the platform's products and services.


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Thursday, October 6, 2022

N-Acetyl-L-Cysteine as a Dietary Supplement

N-acetyl-L-cysteine

I was planning to write about N-acetyl-L-cysteine (NAC) much earlier, but then NAC-containing products that are labeled as dietary supplements came under investigation by the Food and Drug Administration (FDA) in the US. In a nutshell, the FDA has determined that NAC is excluded from the dietary supplement definition under the FD&C Act because NAC was approved as a prescription drug before it was marketed as a dietary supplement or as a food. As a result, all major retailers in the US have started to phase out related products from their catalogues. This does not affect me personally, because I live in Canada and NAC is still freely available as a supplement here. For anybody in the US this means that NAC as a supplement is now in the gray-zone of enforcement discretion by the FDA. [1]

Why has NAC been getting so popular in recent years?

When taken as a supplement, NAC increases the concentration of L-cysteine, an important and essential amino acid, in the body. Cysteine promotes the production of natural antioxidants such as glutathione (GSH), also called the "master detoxifier", which effectively helps the body deal with oxidative stress and other toxins. GSH not only relieves oxidative stress but also supports the functions of vital organs and helps eliminate heavy metals from the body. [2]

Naturally, NAC can be found in different fruits, herbs, and vegetables that, along with a healthy diet, are usually sufficient to fulfill the body's needs. However, as we are getting older it becomes increasingly more difficult for our cellular machinery to extract, generate, and supply an optimal amount of NAC. Other factors, such as poor nutrition, an unhealthy lifestyle, and environmental stress, also contribute to inadequate levels of NAC or cysteine in the body. Supplementation can help counteract these shortcomings. [3]

In clinical practice, NAC is approved and being used for the neutralization and treatment of paracetamol toxicity. Medical research studies have mostly attributed the health benefits of NAC to its antioxidant activity both via GSH and itself. It scavenges free radicals such as hydrogen peroxide and reactive oxygen species to prevent organ damage, especially to the liver. NAC is one of the most potent liver protectants known, which is why it gained popularity as a hangover cure and preventative. In any case, NAC helps maintain optimal cellular integrity and supports important cleansing functions of the body, which is what makes it interesting as a supplement for the purpose of delayed aging and prolonged longevity. [2][3]

It is important to note that aging does not necessarily mean getting older by numbers or appearance. Aging or pre-mature aging is the weakening and fading of our vital physiological functions. Thus, keeping all organs healthy and functioning optimally is directly related to enhanced longevity and a better quality of life. Among other threatening factors to organs, oxidative stress is one of the most common factors generated by the presence of free radicals and toxins. Oxidative stress can damage cells, tissues, and nerves, especially those that are prone to pre-mature aging, and increase the risk of chronic medical conditions, including neurodegenerative diseases. [5]

Health Benefits of NAC

To summarize, NAC is typically considered as an anti-aging and lifespan extending supplement for its strong antioxidant activity. Following are details on medical research studies related to the health benefits as well as physiological functions of NAC and how those can contribute to longevity and an overall better quality of life.

Delayed Aging

NAC helps keep the integrity of organs which creates an anti-aging effect. Medical research studies reported that it increases the resistance of the body against free radicals, environmental stress, and ultraviolet radiation. These functions of NAC specifically protect cells against unwanted cell death (apoptosis), reduce the risk of cancer, and promote other cellular functions that all eventually have a positive effect on lifespan. [2][4][6][7]

Medical studies have shown that NAC elevates the production of GSH which effectively relieves oxidative stress in different body parts. Furthermore, NAC modulates different signaling pathways that positively impact cell growth and arrest, slow down apoptosis, and relieve inflammation. NAC also helps the body against the causative actions of heavy metals, including lead, arsenic, and mercury via cellular detoxification. [2][3][5]

Moreover, studies reported that NAC provides neuroprotection and prevents mitochondrial decay which is highly associated with aging and age-related neurodegenerative diseases such as Alzheimer’s disease, Parkinsonism, and Huntington’s disease. The possible mechanisms include; an increase in the glutathione level in the brain, reduction of oxidative damage, increased mitochondrial protection, improve brain synaptic and non-synaptic activities, and a reduced risk of dopamine-induced cell death. [2][3][5]

Studies also suggested that NAC improves mental health and wellness via regulating neurotransmitters in the brain. It helps normalize glutamate and dopamine levels which boost overall activity of the brain and can improve the symptoms of psychiatric conditions, including schizophrenia, memory ailments, and bipolar disorders. An optimal level of glutamate supports memory, improves cognition and enhances learning capabilities. [6][8]

Another possible anti-aging effect includes the stimulation of hydrogen sulfide (H2S) biosynthesis that plays an important role in longevity and stress resistance. An optimal amount of H2S in the body influences aging-related pathways and improves certain biological activities. These activities are bioenergetics, cellular metabolism, stem cell proliferation and differentiation, autophagy, stress resistance, apoptosis, and inflammation. [7]

Quality of Life

NAC acts as a precursor for cysteine which replenishes the “master detoxifier” GSH in the body and helps prevent various medical conditions. It supports the physiological functions of the heart, lungs, and other vital organs via its antioxidant activity. Medical research studies demonstrated that NAC boosts the immune system, reducing the risk of developing chronic medical conditions. It does so by restoring the concentration of natural killer cells and supporting the functions of lymphocytes and phagocytes, increasing resilience to pathological agents. [2][9][10][14]

Adding more, NAC helps physical performance and may ease muscle fatigue. It enhances force output and improves muscle activity to support a healthy lifespan. Furthermore, NAC supports optimal reproductive and gastrointestinal health. It improves the symptoms of ulcerative colitis via softening the colonic tissue, relieving oxidative stress, decreasing the risk of cell apoptosis, enhancing injured colon recovery, and supporting tightening of junctions. [3][11]

Studies also confirmed that NAC improves the symptoms of various respiratory disorders. It helps chronic bronchitis, asthma, chronic obstructive pulmonary disease, cystic fibrosis, nasal congestion, and airway hyper-responsiveness (AHR). NAC decreases the frequency of symptom aggravation and relieves inflammation in the airways, including bronchial tubes and lung tissues. Moreover, it acts as an expectorant and softens the mucus for easier expulsion. In the case of chronic obstructive pulmonary disease (COPD), NAC improves lung function, reducing exacerbation. All these health benefits may help reduce the risk of respiratory disorders when using NAC as a preventative supplement. [2][3][15][16][17]

Furthermore, NAC supports optimal functioning of the kidneys and liver via detoxifying harmful agents such as drugs and environmental toxins. It may also help various hepatic disorders, including liver cancer via its antioxidant and anti-inflammatory activities. In the case of sexual health, NAC showed a positive impact on fertility, semen quality and also improved symptoms of polycystic ovary syndrome (PCOS) in women. [2][3][12][13]

Medical research studies also reported that NAC prevents the risk of diabetes by regulating blood sugar levels and relieving inflammation in fat cells. It reduces insulin resistance, improves glucose tolerance, and increases insulin sensitivity. Adding more, it not only reduces diabetic complications but also decreases the risk of heart diseases and supports optimal cardiovascular functions. All these health benefits may not only improve the overall quality of life, but also help delay aging, prevent pre-mature aging, and increase longevity through their positive action on organs. [18][19]

Precautions

More likely than not, the use of NAC as a supplement is safe for adults. However, it can cause gastrointestinal symptoms such as nausea, vomiting, diarrhea, and constipation at high doses. Also, other adverse effects include drowsiness, runny nose, chest tightness, and mouth swelling. Its relative safety is also evident in the guidance of the FDA, which states: "Unless we identify safety-related concerns during our ongoing review, [the] FDA intends to exercise enforcement discretion until either of the following occurs: we complete notice-and-comment rulemaking to allow the use of NAC in or as a dietary supplement (should we move forward with such proceedings) or we deny the NPA citizen petition’s request for rulemaking." - meaning, most importantly, that the FDA does not currently have any safety-related concerns about NAC. [1]

Lastly, please note that I am only talking about my personal experience and opinion. This is not medical advice and what works for me might not work for you. Please make sure to always consult your primary care physician about any information obtained from or through my site.




Take a look at this page for a full overview of all the supplements that I am currently taking on a regular basis: Fundamental Longevity Supplements. You will find links to other detailed articles, such as this one, about other supplements significant to longevity. There are also product endorsements and recommendations from me, based on the supplements that I am personally taking after spending years experimenting with different products.




References:

  1. https://www.fda.gov/regulatory-information/search-fda-guidance-documents/guidance-industry-policy-regarding-n-acetyl-l-cysteine
  2. Vida Mokhtari et al. "A Review on Various Uses of N-Acetyl Cysteine." Cell Journal, vol. 19(1), 2017: 11–17. https://doi.org/10.22074/cellj.2016.4872
  3. Špela Šalamon et al. "Medical and Dietary Uses of N-Acetylcysteine." Antioxidants, vol. 8(5), 2019: 111. https://doi.org/10.3390/antiox8050111
  4. Seung-Il Oh, Jin-Kook Park & Sang-Kyu Park. "Lifespan extension and increased resistance to environmental stressors by N-Acetyl-L-Cysteine in Caenorhabditis elegans." Clinics, vol. 70(5), 2015: 380–386. https://doi.org/10.6061/clinics/2015(05)13
  5. Sonja K. Soo et al. "Compounds that extend longevity are protective in neurodegenerative diseases and provide a novel treatment strategy for these devastating disorders." Mechanisms of Ageing and Development, vol. 190, 2020: 111297. https://doi.org/10.1016/j.mad.2020.111297
  6. Deepmala et al. "Clinical trials of N-acetylcysteine in psychiatry and neurology: A systematic review." Neuroscience & Biobehavioral Reviews, vol. 55, 2015: 294–321. https://doi.org/10.1016/j.neubiorev.2015.04.015
  7. Mikhail V. Shaposhnikov et al. "Effects of N-acetyl-L-cysteine on lifespan, locomotor activity and stress-resistance of 3 Drosophila species with different lifespans." Aging, vol. 10(9), 2018: 2428–2458. https://doi.org/10.18632/aging.101561
  8. Lianne Schmaal et al. "N-Acetylcysteine Normalizes Glutamate Levels in Cocaine-Dependent Patients: A Randomized Crossover Magnetic Resonance Spectroscopy Study." Neuropsychopharmacology, vol. 37, 2012: 2143–2152. https://doi.org/10.1038/npp.2012.66
  9. Lorena Arranz et al. "The glutathione precursor N-acetylcysteine improves immune function in postmenopausal women." Free Radical Biology and Medicine, vol. 45(9), 2008: 1252–1262. https://doi.org/10.1016/j.freeradbiomed.2008.07.014
  10. B. de Quay, R. Malinverni, B. H. Lauterburg. "Glutathione depletion in HIV-infected patients: role of cysteine deficiency and effect of oral N-acetylcysteine." AIDS, vol. 6(8), 1992: 815-819. PMID: 1418777.
  11. Qingjing Wang et al. "Protective effects of N-acetylcysteine on acetic acid-induced colitis in a porcine model." BMC Gastroenterology, vol. 13, 2013: 133. https://doi.org/10.1186/1471-230X-13-133
  12. Kívia Queiroz De Andrade et al. "Oxidative Stress and Inflammation in Hepatic Diseases: Therapeutic Possibilities of N-Acetylcysteine." International Journal of Molecular Sciences, vol. 16(12), 2015: 30269–30308. https://doi.org/10.3390/ijms161226225
  13. D. Quig. "Cysteine metabolism and metal toxicity." Alternative Medicine Review, vol. 3(4), 1998: 262–270. PMID: 9727078.
  14. Wulf Dröge & Raoul Breitkreutz. "Glutathione and immune function." Proceedings of the Nutrition Society, vol. 59(4), 2000: 595–600. https://doi.org/10.1017/s0029665100000847
  15. Claudio M. Sanguinetti. "N-acetylcysteine in COPD: why, how, and when?" Multidisciplinary Respiratory Medicine, vol. 11, 2015: 8. https://doi.org/10.1186/s40248-016-0039-2
  16. C. Stey, J. Steurer, S. Bachmann, T. C. Medici, M. R. Tramèr. "The effect of oral N-acetylcysteine in chronic bronchitis: a quantitative systematic review." European Respiratory Journal, vol.16 (2), 2000: 253-262. https://doi.org/10.1034/j.1399-3003.2000.16b12.x
  17. Elham Pirabbasi et al. "Efficacy of Ascorbic Acid (Vitamin C) and/N-Acetylcysteine (NAC) Supplementation on Nutritional and Antioxidant Status of Male Chronic Obstructive Pulmonary Disease (COPD) Patients." Journal of Nutritional Science and Vitaminology, vol. 62(1), 2016: 54–61. https://doi.org/10.3177/jnsv.62.54
  18. Phiwayinkosi V. Dludla et al. "A Systematic Review on the Protective Effect of N-Acetyl Cysteine Against Diabetes-Associated Cardiovascular Complications." American Journal of Cardiovascular Drugs, vol. 18, 2018: 283–298. https://doi.org/10.1007/s40256-018-0275-2
  19. Alona Falach-Malik et al. "N-Acetyl-L-Cysteine inhibits the development of glucose intolerance and hepatic steatosis in diabetes-prone mice." American Journal of Translational Research, vol. 8(9), 2016: 3744–3756. PMID: 27725855.

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Tuesday, August 30, 2022

A Critical View on Proof-of-Stake; Why Bitcoin is Here to Stay

Consensus Mechanism

There are fundamental differences between ETH and BTC when it comes to their capabilities, intended use cases, and their respective ecosystems overall. I won't be discussing those in this post. I am merely using them as representatives for two radically different philosophies in the blockchain space, that of proof-of-stake and that of proof-of-work.

When we read about these things in mainstream news, on social media or any other space where these topics are being discussed, the primary consideration for one over the other is often cited as the environmental impact that they have - especially when it comes to power consumption.

There is no denying that a proof-of-stake blockchain has radically lower power requirements compared to a proof-of-work blockchain. Since the vast majority of power generated all over the world is currently not considered clean, sustainable energy, there is also no denying that at present a proof-of-stake blockchain will have a radically smaller energy footprint, and therefore much less of a negative environmental impact, than a proof-of-work blockchain.

However, in my opinion, while the above seems like a perfect argument to pivot towards proof-of-stake, it is also an extremely dangerous view that is both short-sighted and diverts attention away from a severe underlying issue with any proof-of-stake blockchain.


Mining ETH versus BTC

To understand the issue, first, let's take a small step back and look at why, especially recently, mining ETH has been more profitable than mining BTC.

The short answer is gas fees; they make up a significant amount of revenue for ETH miners but are largely insignificant for BTC miners. Ever since the NFT craze in late 2021 gas fees on ETH have skyrocketed and are often cited as one of the main issues of Ethereum when it comes to its viability in terms of mass adoption; you can read more about those scaling issues directly on the Ethereum website.

This video is a perfect landmark for when that NFT craze peaked in the mainstream.

This is what mining revenues recently looked like when comparing ETH and BTC. Mining ETH is still more profitable than mining BTC, despite the initial NFT craze having largely subsided.

Daily Miner Revenue; ETH/BTC

The gas fees on Ethereum are still out of control and often make trading small amounts of ETH or low-value NFTs that live directly on the Ethereum blockchain prohibitively expensive, which in turn limits the overall potential and specific use cases of Ethereum. This is not a new or recent realization. In fact, to name two examples, it's the primary reason why Dapper Labs decided to build their own L1 blockchain Flow after their experience with Crypto Kitties on Ethereum - and the primary reason why L2 solutions and ZK-rollups like Immutable X exist.

Now add the negative environmental impacts, due to the escalating power demands of proof-of-work blockchains, on top of all of that and we have the perfect narrative for why proof-of-stake is supposedly the future of blockchain.


The Problem With Proof-of-Stake

In order to understand the issue, we first need to look at value creation, the foundation of every business and our capitalist society. The foundation of every business is to create and deliver value in an efficient enough manner so that it will generate a profit after cost. In the broadest terms possible, value is created through work. In scientific terms, entropy is reduced by investing energy, turning something that's chaotic and useless into something that is more useful to humans. In simple terms, you have to spend time and/or money in order to make money.

This is essentially the concept behind every proof-of-work blockchain, such as Bitcoin.

Institutional investing works very differently. Institutional investors are usually large market actors such as banks, mutual funds, pensions, and insurance companies that pool together funds on behalf of others and invest those funds in a variety of different financial instruments and asset classes. Those businesses do create value like any other - however, their investors don't, they just give them money to turn it into more money. The more money an investor will give to these institutions to invest into ETFs, mutual funds, crypto tokens, or similar assets, the more they will get in return. In other terms, the richer those investors already are, the richer they will get, without doing any work or spending any money.

This is essentially the concept behind every proof-of-stake blockchain, such as Ethereum will be.

One could say that there is nothing wrong with this, that's just how our society works, deal with it. I think that's a valid position to take, if being honest about it. However, the entire crypto scene has become a huge echo chamber about how blockchain, DAOs, decentralization, a free metaverse, and other buzzwords are going to be our salvation and the future of humankind; finally a way out of end-stage capitalism! The reality is that everything that is currently happening in the blockchain space is leading us into the exact opposite direction, the tokenization of everything, everything having some kind of precisely measurable monetary value associated with it, essentially capitalism on steroids. In the world of NFTs and blockchain, at least as it is being steered right now, you will be even less relevant than you already are if you're not already rich. If this future happens as it is being envisioned, it'll be the most extreme divide between the wealthy and the poor that has ever existed in the history of humankind. If put into the terms of a free-to-play video game, in the long run, all that's going to be left are the whales and the gold farmers.


Proof-of-Work is Not a Long-Term Issue

The current impact of the energy needs of proof-of-work blockchains is undeniable, even more so in these most recent times of international turmoil and war. However, I believe the right approach is not to get rid of proof-of-work as a concept, but to see this as an opportunity and argument to radically increase investments into clean and renewable energy sources.

Significant advances have already been made in the field of fusion energy. In a recent milestone at the LLNL, published this summer, researchers recorded a net-positive energy yield of more than 1.3 megajoules during only a few nanoseconds. For reference, that's enough clean energy to power a few thousand homes for a year. This is what we need to double down on.

Bitcoin and the proof-of-work concept were conceived with the Kardashev scale of civilization in mind, originally proposed by Soviet astronomer Nikolai Kardashev in 1964. Kardashev wondered about civilization, which he defines by its capacity to access energy, to maintain itself and to integrate information from its environment. I encourage you to read more about his ideas and how contemporary physicists expanded on it.

In this context, and by looking at those premises, it becomes clear how those ideas relate to a proof-of-work blockchain and Bitcoin specifically:

  • Access to energy; an ever increasing amount is required based on how proof-of-work creates an ever increasing complexity to solve. Over a period of time, this automatically accounts for radical breakthroughs in our ability to access energy.
  • Maintaining itself; the concept of decentralization, there is no single controlling entity or group of entities.
  • Integrating information from the environment; the concept of immutable information being publicly accumulated and stored on the blockchain.

All of the above is also one of the main reasons why Bitcoin has now become lot more like a naturally occurring commodity rather than something that's human-made and maintained, even though it factually is.

These are the same reasons why I believe that it's a huge mistake to switch Ethereum to a proof-of-stake blockchain. It's the antithesis to those concepts - access to energy becomes access to capital, maintaining itself becomes maintained through the people with the most money, because all crypto tokens have monetary value. Besides, there are already solutions that fix all the everyday issues this change is supposedly solving, namely L2 networks and ZK-rollups. It's basically an unnecessary band-aid for Ethereum to work around the energy issue, with potentially devastating results.

I do believe there is a perfectly valid and important place for more commercially oriented blockchain projects like BNB, FLOW, SOL, IMX, and way too many others to create an exhaustive list, especially when it comes to addressing the everyday practical needs of projects building on top of them, but nothing like those should be the foundation on which we build our digital future.

The right solution would be to fix the underlying issue, specifically the current energy scarcity, reliance on fossil fuels and other non-renewable energy sources that pollute our environment. That's a solution that would benefit all of humankind, all of us that are currently around as well as all future generations - not just the richest 1%.

I realize these are lofty, maybe even idealist thoughts. Then again, people should at least be honest about what their end-game is with proof-of-stake; it's about maintaining control and keeping our current societal order intact in the upcoming digital age, and a +1 at that.


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Thursday, November 11, 2021

How Forex Brokers Make Money

100 Dollar

When I started to look at forex trading more seriously, one of the first things I had to do is to find a reliable and fair forex broker. I am very fortunate to have found Global Prime; they offer accounts for forex retail traders almost anywhere in the world, with only the exceptions of North Korea, Iran, USA, Puerto Rico, Ivory Coast, and Ontario, the province of Canada.

I already wrote a post about why I chose Global Prime as my forex broker. However, that is only a brief overview of the true depth beneath it all. The tip of the iceberg, in a sense. There is a very direct and straight forward honesty with which Global Prime operates and they genuinely value educating their clients about the business they are operating. To that end, they have an in-depth video series on their YouTube channel where they explain the ins-and-outs of the forex broker business from their own inside perspective. I found those videos to be highly educational, eye-opening even. I have not seen this type of candid discussion about the forex broker business anywhere else, especially not in this kind of detail.

The videos feature Angus Walker (General Manager), Jeremy Kinstlinger (Co-Founder) and host Sammy Althaus (Head of Retail Support) of Global Prime, alongside occasional guests. This is an overview of the first six episodes.

I found the first two episodes somewhat difficult to follow, I can imagine this is even more difficult for someone who is completely new to the topic. Somewhere after the third and into the fourth episode - following the discussion about dealing desks - was the point where it all came together for me and started to make sense. I hope the excerpts below are helpful for the purpose of following the overarching narrative. At the bottom of this page, you will find a broker quiz to help you understand what kind of forex broker you are dealing with and how honest they are with you.

Episodes

  1. A-Book vs B-Book
  2. Forex Brokers Profit From Client Losses
  3. Dealing Desks Exposed
  4. Real Liquidity vs B-Book
  5. The Real Reason Brokers Offer 500:1 Leverage
  6. Why Forex Brokers Profile Clients

Update; September 2023. Unfortunately, Global Prime decided to mark all the videos of this series private on YouTube. However, even though the videos aren't publicly available anymore, the core content is still preserved here on this page in the summaries below and provides an insightful overview on how forex brokers make money.




A-Book vs B-Book

The discussion in the first episode centers around the fundamental differences between A-Book versus B-Book brokers. This is a key indicator to differentiate between brokers who have your interests at heart versus those who are likely to do more harm than good to your trading account.

The difference, in a nutshell:

  • A-Book: Brokers who focus on connecting their clients to financial markets, helping them become profitable; they communicate transparently about all trades on a case-by-case basis.
  • B-Book: Brokers who provide a market to trade, but don't externalize trades and the risk; they simulate a market environment without actually connecting their clients to real financial markets.

Angus believes ~98% of current forex brokers use a B-Book model, and none of them focus on honesty and transparency with their clients. B-Book brokers focus on extracting losses from their clients, which leads to a lot of compromises in potential profitability for all of their clients. Interestingly, in 2018, a report of the Australian Securities and Investments Commission (ASIC) showed that trading clients lost ~$2 billion, while brokers profited ~$2 billion. B-Book brokers usually target inexperienced clients who don't fully understand the implications of trading in such an environment. The second episode goes more in-depth on this particular subject, explaining how exactly B-Book brokers are profiting from their clients.

Brokers, like any other business, need to focus on client outcomes (i.e. profitability) for long-term, sustainable success. Global Prime's goal is to do that for their clients in order to connect them to financial markets reliably, while educating them about the forex trading business to help them become successful as traders. This leads into an interesting and important discussion about the ethics of the forex broker business; I encourage you to watch the full episode to follow it.



Forex Brokers Profit From Client Losses

The majority of this episode further iterates on points about the ethics of brokerages and regulatory bodies that were introduced in the first episode, and how Global Prime operates differently than most other forex brokers.

Why do forex brokers B-Book?

Because most retail traders tend to lose, the profit margin for a B-Book broker is 2x to 6x greater than that of an A-Book broker. Brokers aren't penalized for the practice of directly profiting from their client's losses and can be vague about their product descriptions to create loopholes. They are also able to advertise leverage rates of 1:500 or higher, which helps them attract clients by making it appear as if they offer great trading conditions. In a sense they do, but leverage amplifies both wins and losses, and since most retail clients tend to lose it's in the best interest of B-Book brokers that their clients use as much leverage as irresponsibly as possible.

Usually, B-Book brokers profile and divide their clients into two groups - profitable traders are transferred to a secondary A-Book (connected to actual markets), while losing traders stay in the primary B-Book (markets simulated by the broker). The focus of these brokers is to optimize their B-Book trading to facilitate more clients losing, in order to maximize their profits. For profitable traders this usually creates very poor trading conditions, because optimizing liquidity for their A-Book is often an afterthought for these brokers.

B-Book brokers are similar to casinos and gambling business models in that they profit off of their client's net losses, not their net gains. They are focused on marketing and the constant acquisition of new clients instead of client retention and bringing actual value to their clients.

How does Global Prime compete as an A-Book brokerage?

Their product offerings are not that different from those of B-Book brokers, but the leverage offered to their clients is more conservative. A-Book brokerages focus on trade execution speeds, quality of trades, and typically have 1-3 prime brokers. A-Book brokers get direct liquidity from different banks and customize their pricing for institutional and retail clients.

A-Book brokers profit from a mark-up on spreads, swaps, and commissions - not off of a conflict of interest like B-Book brokers.

Essentially, this enables A-Book brokerages to focus on qualitative results for clients w.r.t. transparency, liquidity, and profitability instead of pure quantity of clients and trades. Global Prime specifically values building a community of educated and profitable traders who can hold the brokerage accountable for results and advice.



Dealing Desks Exposed

The third episode centers around dealing desks at a brokerage, what they are, how they operate, and why you should care about them.

Essentially, dealing desks are tasked with risk management for a brokerage.

The underlying principle, as with B-Book tactics in general, is for clients to lose, so that the brokerage can profit from those losses. In certain cases, dealing desks may even deploy deterrent strategies against winning clients to stop them from making too much of a profit at the brokerage's expense - such as artificial slippage, delaying trades, increasing latency, limiting execution speeds, or artificially changing the trading environment.

The checklist for a typical dealing desk:

  • In the long run, the clients always have to lose.
  • Hedge the least amount possible. The more exposed a B-Book broker is, the more money they stand to make. For instance, if they make $100-200 million in a quarter, then the market exposure they carry is, on average, over $1 billion.
  • Hedge less in volatile markets. More volatility = more client losses = more profit for the broker.
  • Clients with excess risk always blow up their account.
  • The A-Book is not the focus.
  • The core principle is always to optimize revenue per million and maximize profits for the brokerage through earning from client losses.

Dealing desks can switch a client from A-to-B-Book (or vice-versa) even mid-trade, and the client has no idea. This leads to the client suffering a higher possibility of losses due to the aforementioned unethical practices of delaying trades, artificial slippage, etc.

These forex brokers always have a set percentage of winning clients who are permanently put on the A-Book, but that A-Book itself is often only an afterthought, so the client doesn't have access to optimal liquidity or an ideal trading environment. This is bad for these profitable clients, as it is likely that they are getting a sub-standard return on their investment at the brokerage.

It can result in a double loss for the brokerage if they move a client from B-to-A-Book; i.e. if a client wins on the B-Book side, then the brokerage owes them money. Then, if that client is moved to the A-Book and loses, that's another loss for the brokerage as well because now the brokerage owes money to a bank. Thus, it requires good timing, expertise and substantial experience to operate a dealing desk at the highest efficiency.

B-Book brokers primarily make money from exposure + volatility = risk (the "formula" for client losses) not from commissions or spread revenue across clients. This is one of the reasons why they are eager to give 500:1 or more leverage to clients, who (statistically speaking) inevitably make large losses. Leverage amplifies both wins and losses, and the quicker clients blow up their account, the quicker a B-Book forex broker generates a profit.

What are the two most important tools for every B-Book brokerage?

  • Marketing. - This brings clients to the brokerage to make money off of them. Since the strategy is for clients to blow up their account, and it is expected of them to eventually give up forex trading in the process, these brokers require a constant stream of new clients.
  • Dealing Desks. - The broker completely controls the trading conditions and risk management policy by constantly monitoring and dynamically adapting the trading environment.

A-Book brokers on the other hand focus on managing liquidity and communicating with liquidity partners to make sure that their clients receive the best trade execution speeds and trading environment.

Why should you care?

The primary mission of dealing desks is making sure individual clients don't make too much money, so that the brokerage can profit from their losses instead. Being a high-value, high-volume, winning client is actually detrimental to a brokerage firm that primarily operates on a B-Book. This is why it's so important to know whether a brokerage has your best interests at heart - and to help answer that, please refer to the quiz at the bottom of this page. The Q&A style format should be self-explanatory after reading and digesting this article, even more if you watch all the videos as well.

Do A-Book forex brokers like Global Prime have dealing desks?

Normally, an A-Book forex broker does not have (nor need) a dealing desk.

However, batch hedging, where trades are internalized until they reach a certain value threshold, after which they are connected to the external market environment, has some characteristics of a dealing desk. The key difference is that these trades and clients are not individually profiled; instead, the trades are only internalized until their combined value aggregates over a preset limit. The brokerage doesn't make money off of any client's losses (if any) in this case. It is considered a budgeting and cost saving measure, in regards to transaction volumes, to accommodate retail traders with small accounts and to ensure profitable trades for all clients involved.



Real Liquidity vs B-Book

This discussion focuses on exhaust flows and the value of real liquidity of an A-Book brokerage vs that of a typical B-Book brokerage. The episode features Elan Bension (Co-Founder, Director Institutional) of Global Prime as a guest.

In the B-Book business model, when a broker moves a profitable client from their B-Book to their A-Book, they are "exhausting" the trade volume of that particular client into the real market. The losing clients are kept on their internal B-Book. Meanwhile, an A-Book broker tries to exhaust and showcase as much of their trading volume as possible to the market, to maintain complete transparency about all client transactions.

The system of trade in A-Book vs B-Book:

  • In general, the system of how the trades are executed in A-Book and B-Book brokerages are quite similar, up until the time when the counterparty fills the trade. With an A-Book brokerage you are trading against real, external liquidity providers, whereas with a B-Book brokerage the trade is being internalized by the brokerage.
  • In both cases, the trade goes through the platform and then hits a bridge/execution engine. Now, at the execution engine, in a B-Book execution, the trade will follow all the settings prescribed by the broker, i.e. the latency of execution. Then, the system will take a snapshot of the market liquidity after that latency time-gap has passed (e.g. 30 milliseconds), and then fill in the final order according to the available liquidity and other parameters present at that particular time.
  • An A-Book brokerage uses live-market trade response times; while B-Book brokers have to simulate/synthesize the latency, response times, and order fills for clients with larger orders. This isn't a true reflection of current market conditions and easily abused or manipulated for profit by the broker, at the expense of their clients.

The quality of liquidity = the quality of the relationship.

The quality of liquidity provided to clients is often dependent on the relationship between the brokerage firm and their liquidity providers. Global Prime has a team dedicated to communicating and showcasing the quality of their current client flow to their liquidity providers. Elan says that banks don't mind seeing diverse (both good and bad, i.e. losing and winning) client flow, because what matters most to banks is transparency. Due to this openness and dedicated relationship between the brokerage and their liquidity providers, Global Prime is able to provide a superior quality of liquidity to their clients compared to B-Book or even other A-Book brokerages.

In B-Book brokerages, there is usually a lack of transparency with banks. Those firms intentionally send them about 95% bad client flows (i.e. mostly the winning clients, which they don't want on their internal B-Book), which negatively impacts the banks investing with them. Thus, the banks start losing faith in the B-Book brokerage because they (the banks) are consistently losing money by investing with them. In the long run, this leads to the banks being more defensive with their injections of liquidity, which increases the risks of slippage and outages for the trading stream of the B-Book brokerage. This then affects both A-Book & B-Book clients of the firm, leading to system breakdowns.

Additionally, the A-Book clients of primarily B-Book brokers suffer from a lack of dedicated attention to their portfolios and liquidity management. Meanwhile, a purely A-Book brokerage can offer better liquidity and attention to their clients due to a better relationship with their banks. Having a good relationship with their liquidity providers also enables an A-Book brokerage to customize the revenue/liquidity streams to fit their clients better. For them their A-Book isn't an afterthought, it's the core of their business.



The Real Reason Brokers Offer 500:1 Leverage

There is a common sentiment in the forex retail trading community that one of the best ways to get higher returns is through higher leverage.

Is it possible to get higher returns (~5% per month) without very high leverage?

It is entirely possible to do so, but it isn't attractive to most traders because higher leverage seems like a good deal or shortcut to most. However, most of the traders who are entering the market today with B-Book brokers are uninformed about the true risks of higher (like 500:1 or more) leverage, and haven't had suitability tests done to actually assess their ideal leverage and risk capacity. Ultimately, this leads to the wrong belief that they absolutely require higher leverage to make more money, or even to make any significant amount of money at all.

However, B-Book brokers often have a near-guaranteed return on any investment they make with a losing trader. This is why they are happy to offer exorbitant leverage rates, or welcome and deposit bonuses, because at the end of the day the brokerage is going to make a net profit from their clients' losses, carefully managed by their dealing desk. Extremely high leverage is not always in every trader's best interest. Often, when traders ask back-office or B-Book brokers for higher leverage, there is no risk assessment done and minimal information is given to the trader about the risks involved. This usually leads to massively amplified losses on the trader's side, meaning quicker and higher profits for these brokerages.

Angus, Jeremy and Sammy all agree (as before, in the second episode) that B-Book brokerages are like casinos, where some people might get lucky every once in a while, but the house always wins. Angus reminds us that the general rule of thumb with trading is to try and make 1% profit with each trade, and nobody really needs 500:1 leverage to make a 1% profit.

Personally, I think the issue is that most retail traders misunderstand the purpose of leverage. They see it as a means to open a few extreme positions in an effort to make as much money on a few trades as quickly as possible. In reality, the main benefit of high leverage, as I see it, is that it allows you to open a lot of very reasonable positions in parallel. However, this is not something that a regular retail trader should be doing. If you're manually opening 20-30+ positions in parallel on a daily basis, chances are you're probably overtrading. For regular retail forex trading, something along the lines of 100:1 leverage is more than enough and already requires a fair amount of discipline to manage.

In equities trading and other financial trading platforms, there are usually stringent background checks and risk assessments required, no matter what kind of financial instruments are offered to traders, because there is an underlying market which is heavily regulated by proper institutions. In forex trading however this is not always the case, and there are many ways to skirt around the few regulations that are in place, which lead to the creation of the A-Book and B-Book business models in the first place.



Why Forex Brokers Profile Clients

Angus reiterates how B-Book brokers profile clients in order to optimize and maximize their own profits by carefully categorizing traders. As previously mentioned, the profit difference (revenue per million) between an A-Book and B-Book brokerage is significantly in favor of the B-Book brokerage. They don't have their clients' best interests at heart, since relieving them of the money in their account is their primary source of revenue, and will do whatever it takes to make money off of as many of their clients as possible.

The profiling of potential clients starts with the marketing team, who focus on jurisdictions where they predict a higher number of unsophisticated and amateur traders. The B-Book broker's primary objective is to get as many such traders on board as possible, because they are the main target of B-Book tactics. Usually, if a broker is offering a "learn as you trade" service, they are more likely to be running a B-Book. The same applies to welcome bonuses, deposit matching, and similar promotions.

In order to further profile their clients, a B-Book brokerage will then go through a client's transaction history and buying behavior. This serves to find out whether to categorize them as a losing trader (who is kept on their primary B-Book) or a winning trader (who is sent to their secondary A-Book), and which strategies to employ to make the most amount of money from that client.

Using highly sophisticated profiling strategies as well as experienced dealing desk operators, B-Book brokers are nearly always at an advantage. They can plan ahead and keep refining their methods of extracting profitability from losing traders by internalizing all of the risk and guiding inexperienced traders towards sustaining heavy losses. While the brokers have a plethora of information and data about their traders' skill level and trading history, the traders do not have this advantage/luxury, unless they use equally sophisticated third party tools.

At the end of the day, forex trading is a zero sum game and a B-Book brokerage will always be the winner in the trading environment they provide and fully control. It is a very adversarial and competitive situation, with a major conflict of interest between the B-Book brokerage and their clients. Winning clients who are making money are essentially a kind of opportunity cost for B-Book brokers, or in other words, a necessary inconvenience that comes with the territory. - Isn't that precisely the reason we all started forex trading though, to win trades and to make money?



Broker Quiz

The following five questions can be asked of your favorite broker.
If your broker is honest, they should be able to answer you easily and without hesitation.

      • Rule #1: This must be sent to the compliance department of your broker.
      • Rule #2: You must demand YES/NO answers for this to be effective.
  1. Do you profile your clients into separate books (i.e. A-Book / B-Book) based on their profitability? YES/NO?
    • The answer should be NO. An ethical broker should not offer different trading conditions to their clients based on their profitability.
  2. Can you categorically state that you do not profit from client losses through warehousing client trades? YES/NO?
    • The answer should be YES. If the answer is NO, then the broker is primarily set up to profit from client losses instead of providing access to financial markets as a service.
  3. Do you notify clients when you switch them from A-Book to B-Book ? YES/NO?
    • If the answer to the first question is YES, then the answer to this should be YES as well. That would mean the broker is profiling clients, but at least honest about doing so. If the answer to the first question is NO, then the answer to this question should be N/A.
  4. Can your clients increase their leverage without any assessment? YES/NO?
    • The answer should be NO. A responsible broker will make sure that clients do not overtrade and understand the risks of trading with very high leverage.
  5. Do you provide some form of post trade transparency to demonstrate which liquidity provider filled the client's trade? YES/NO?
    • The answer should be YES. Otherwise there is no transparency on who filled the trade on the opposing side and whether the trade was based on real market conditions.

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Saturday, May 29, 2021

Omega-3 & CoQ10, Effects on Longevity

Omega-3 Fish Oil

Both omega-3 fatty acids and CoQ10 play an important role in supporting the optimal performance of various physiological processes. Coenzyme Q10 is naturally produced in the body and stored in the mitochondria, the powerhouse of the cell. It acts as a potent antioxidant agent that, if taken as a supplement, can help with various medical conditions. Omega-3 fatty acids derived from fish and other seafood typically deliver a combination of EPA (eicosapentaenoic acid) and DHA (docosahexaenoic acid) fatty acids to help prevent deficiencies. There is a third omega-3 fatty acid, ALA (alpha-linolenic acid), which is found mainly in plant oils such as flaxseed, soybean, and canola. Diets in developed nations tend to be rich in ALA (typically from oils used to fry food), but poor in EPA and DHA, unless a diet regularly includes fish or other seafood.

Both omega-3 fatty acids and CoQ10 are commonly found combined in the same supplement because they have synergies with each other based on their individual action. They are often marketed as heart health products since both help fight inflammation, support blood vessel and cardiovascular health, nourish brain cells, and reduce mental stress.

Health Benefits of Omega-3 and CoQ10

There is a wealth of literature and websites on the potential health benefits of omega-3 fatty acids. Here I am focusing on some of the key benefits of omega-3 fatty acids and CoQ10 as they relate to the topic of longevity.

Cardiovascular Functions

Medical research studies have shown that omega-3 fatty acids are able to support a healthy heart in numerous ways. They decrease the level of bad cholesterol in the body, help regulate the amount of triglycerides (i.e. energy stored in fat cells) and increase the concentration of high-density lipoproteins a.k.a. good cholesterol. As a result, this reduces the risk of plaque formation in blood vessels, which in turn promotes optimal blood flow and heart functions. Moreover, they help with high blood pressure, relieve inflammation and may even help resolve harmful blood clot formations inside blood vessels. [3][4][6][7]

Studies reported a potent antioxidant effect of CoQ10 that relieves oxidative stress in cells, protects cellular integrity and helps vital body organs. Several medical studies have shown that CoQ10 has a significantly positive effect on blood sugar levels and cardiovascular health. It helps regulate blood sugar levels, lowers the amount of triglycerides, and supports a higher concentration of good cholesterol in the blood. All these physiological effects not only assist heart functions, but also may help with type 2 diabetes symptoms and synergize with the effects of omega-3 fatty acids. Moreover, the antioxidant action of CoQ10 not only benefits everyday brain functions, but also reduces the risk of developing neurological diseases and disorders. [1][2][9][16]

Neuroprotective Effect

Studies reported a neuroprotective effect of omega-3 fatty acids that not only slows down the progression of neurological diseases but also helps relive symptoms of depression and mental stress. An optimal supplementation of omega-3 fatty acids was reported to lower anxiety, improve states of depression, and to inhibit the production of pro-inflammatory mediators, including interleukin-6 and tumor necrosis factor-alpha (TNF-α). [5][6][7]

Brain Health

In addition to their neuroprotective effect, studies suggest that an optimal intake of omega-3 fatty acids results in tangible benefits for brain health in terms of mental ability and performance. Medical research studies reported that optimal levels of omega-3 fatty acids support cognition, improve memory retention, support social skills, and increase concentration as well as attention span. A proper intake of omega-3 fatty acids may even lessen symptoms of hyperactivity, aggression, sleep apnea, and impulsiveness. This was found in a study specifically about children, but still reminds of similar effects in adults mentioned before. [5][6][7] These particular benefits are the primary reason why omega-3 fatty acids are also highly popular as supplements in the nootropic community.

Eye Health

Macular degeneration is a serious threat to eyes sight and may, with old age, eventually result in permanent blindness. Different medical studies reported that omega-3 fatty acids have the ability to protect the retina against different pathological and environmental hazards and reduce the risk of macular eye degeneration. Thus, they help protect vascular and neural retina tissues which in turn improves eye health and longevity. [6]

Sexual Health

An optimal amount of CoQ10 supports sexual health and wellbeing in both men and women. Medical research studies reported that the antioxidant activity of CoQ10 improves testosterone levels, increases sperm count, and encourages sperm mobility for improved fertility. Furthermore, studies confirmed a significant positive effect on overall fertility and sperm quality by protecting sperm cells against chemical toxins in the body. [12][13]

In the case of women, medical research studies confirmed a positive impact of CoQ10 supplements during pregnancy. It not only reduces the risk of preeclampsia but also improves the ovarian response to stimulation as well as embryological parameters that help fertilization and support the optimal development of the embryo. [8][11]

Physical Performance

CoQ10 is stored in the mitochondria and part of the process of cellular energy production. It is required for proper cellular mitochondrial functions and helps during physical activities. Studies reported that supplementation with CoQ10 relieves muscle fatigue and delays exhaustion, both of which enhance athletic performance. The antioxidant activity of CoQ10 further promotes mitochondrial functions by protecting them against oxidative stress. [14][15]

Quality of Life

Adding more to the previously discussed health benefits, omega-3 fatty acids also reduce the risk of developing metabolic disorders, including diabetes. They increase resistance against inflammation as well as insulin sensitivity, which helps regulate high blood sugar levels. As a result, they decrease the risk of developing various medical conditions linked to irregular levels of inflammation, including cancer and heart disease. Overall, all of these are effects that can meaningfully contribute to an increased health span. [4][5][20]

Studies also suggested that omega-3 fatty acids support resistance against autoimmune types of diseases and may improve the symptoms of rheumatoid arthritis, ulcerative colitis, Crohn’s disease, and psoriasis. Moreover, they support healthy bones and joints by reducing pain and helping to increase grip strength. In regards to common aging related diseases, optimal intake of omega-3 fatty acids reduces the risk of osteoporosis and arthritis. [7][18][19]

Complementing the health benefits mentioned above, an optimal amount of CoQ10 in the body helps reduce the occurrence of migraines and decreases the severity and occurrence of headaches. Moreover, CoQ10 slows down the progression of type 2 diabetes via reducing fasting blood sugar and hemoglobin A1C levels. It stimulates the metabolism of fats and discourages their accumulation in adipocytes (i.e. fat cells). Some studies also reported that CoQ10 supports lung functions and tissue oxygenation via suppressing inflammatory response. Thus, it might also reduce the risk of developing certain respiratory conditions, including asthma and chronic obstructive pulmonary disease. [1][2][9][10][16]

Omega-3 fatty acids improve skin texture and help maintain younger looking skin. They play an important role in skin hydration, reduce the risk of developing abnormal skin conditions and improve skin immunity against pathological agents. Additionally, they improve oil production to help prevent premature aging of the skin through exposure to environmental hazards. Studies also reported that they contribute to protecting the skin against harmful radiation from the sun and increase the concentration of collagen in the skin. [17]

Lastly, please note that I am only talking about my personal experience and opinion. This is not medical advice and what works for me might not work for you. Please make sure to always consult your primary care physician about any information obtained from or through my site.




Take a look at this page for a full overview of all the supplements that I am currently taking on a regular basis: Fundamental Longevity Supplements. You will find links to other detailed articles, such as this one, about other supplements significant to longevity. There are also product endorsements and recommendations from me, based on the supplements that I am personally taking after spending years experimenting with different products.




References:

  1. Juan D. Hernández-Camacho, Michel Bernier, Guillermo López-Lluch, Plácido Navas. "Coenzyme Q10 Supplementation in Aging and Disease." Frontiers in Physiology, vol. 9, 2018: 44. https://doi.org/10.3389/fphys.2018.00044
  2. Rajiv Saini. "Coenzyme Q10: The essential nutrient." Journal of Pharmacy & BioAllied Sciences, vol. 3(3), 2011: 466–467. https://doi.org/10.4103/0975-7406.84471
  3. M. Ebrahimi et al. "Omega-3 fatty acid supplements improve the cardiovascular risk profile of subjects with metabolic syndrome, including markers of inflammation and auto-immunity." Acta Cardiologica, vol. 64(3), 2009: 321–327. https://doi.org/10.2143/AC.64.3.2038016
  4. Gerry Schwalfenberg. "Omega-3 fatty acids: their beneficial role in cardiovascular health." Canadian family physician, Medecin de famille canadien, vol. 52(6), 2006: 734–740.
  5. Arne Reimers & Hanna Ljung. "The emerging role of omega-3 fatty acids as a therapeutic option in neuropsychiatric disorders." Therapeutic Advances in Psychopharmacology, vol. 9, 2019. https://doi.org/10.1177/2045125319858901
  6. David Kiefer & Traci Pantuso. "Omega-3 fatty acids: An update emphasizing clinical use." Agro Food Ind Hi Tech., vol. 23(4), 2012: 10–13.
  7. Maria Alessandra Gammone, Graziano Riccioni, Gaspare Parrinello, Nicolantonio D’Orazio. "Omega-3 Polyunsaturated Fatty Acids: Benefits and Endpoints in Sport." Nutrients, vol. 11(1), 2019: 46. https://doi.org/10.3390/nu11010046
  8. Enrique Teran et al. "Coenzyme Q10 supplementation during pregnancy reduces the risk of pre-eclampsia." International Journal of Gynecology and Obstetrics, vol. 105(1), 2009: 43–45. https://doi.org/10.1016/j.ijgo.2008.11.033
  9. Shi-ying Zhang et al. "Effectiveness of Coenzyme Q10 Supplementation for Type 2 Diabetes Mellitus: A Systematic Review and Meta-Analysis." International Journal of Endocrinology, 2018: 6484839. https://doi.org/10.1155/2018/6484839
  10. ZhiYong Zeng et al. "Efficacy of CoQ10 as supplementation for migraine: A meta-analysis." Acta Neurologica Scandinavica, vol. 139(3), 2019: 284–293. https://doi.org/10.1111/ane.13051
  11. Yangying Xu et al. "Pretreatment with coenzyme Q10 improves ovarian response and embryo quality in low-prognosis young women with decreased ovarian reserve: a randomized controlled trial." Reproductive Biology and Endocrinology, vol. 16(1), 2018: 29. https://doi.org/10.1186/s12958-018-0343-0
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