Coinbase Earnings: Top Strategies to Make Money Online

In the rapidly evolving world of cryptocurrency, Coinbase has emerged as a leading digital currency exchange platform, offering users diverse opportunities to generate income. As crypto investors seek ways to maximize their coinbase earnings, understanding the various strategies available becomes crucial. From trading on Coinbase Pro to exploring DeFi opportunities through yield farming, the platform provides a wide array of options to make money with cryptocurrency.

This article delves into top strategies to boost coinbase earnings and make money online using the platform. Readers will discover how to leverage Coinbase Earn to diversify their crypto portfolio, explore arbitrage opportunities, and even invest in promising crypto startups through Coinbase Ventures. Additionally, the article covers ways to use Coinbase analytics for informed decision-making, take advantage of institutional-grade trading with Coinbase Prime, and build a passive income stream. By implementing these strategies, users can potentially enhance their cryptocurrency earnings and navigate the dynamic crypto market more effectively.

Coinbase Pro: Upgrading Your Trading Experience

Coinbase Pro, now integrated into the main Coinbase platform as Advanced Trade, offers a more robust and customizable trading experience for cryptocurrency enthusiasts. This upgrade provides users with enhanced tools and features to optimize their trading strategies and potentially increase their coinbase earnings.

Differences between Coinbase and Coinbase Pro

The transition from Coinbase Pro to Advanced Trade has brought significant improvements to the trading experience. Here are some key differences:

Fee Structure: Advanced Trade users benefit from a maker-taker model with fees up to 0.6% per trade, which can be reduced for high-volume traders ^[1]. This structure is more favorable compared to the standard Coinbase platform, where fees vary based on factors such as payment method, purchase amount, and market conditions ^[1].
Trading Pairs: Advanced Trade offers access to over 500 trading pairs, including crypto-to-crypto pairs ^[1]. This extensive selection provides traders with more opportunities to diversify their portfolios and explore various market dynamics.
User Interface: While the standard Coinbase platform caters to beginners with a simpler interface, Advanced Trade features a more comprehensive trading environment. It includes interactive charts, technical indicators, depth charts, and real-time asset pricing ^[2].
Accessibility: Users can now toggle to Advanced Trade directly within the main Coinbase app ^[1], making it more convenient to access advanced features without switching between platforms.

Advanced Trading Features

Advanced Trade equips traders with a suite of powerful tools to enhance their trading strategies:

TradingView Integration: The platform incorporates advanced charting powered by TradingView, allowing traders to leverage sophisticated technical analysis tools ^[3]. Users can access indicators such as EMA, MA, MACD, RSI, and Bollinger Bands, as well as custom drawing tools for in-depth market analysis.
Order Types: Advanced Trade supports various order types, including limit orders and stop-limit orders ^[3]. These options enable traders to manage risk more effectively in volatile market conditions and execute trades with greater precision.
Margin Trading: The platform offers the ability to trade with borrowed funds, providing greater buying power through leverage ^[2]. This feature allows traders to potentially amplify their gains, although it also increases the risk of losses.
API Access: Advanced Trade provides an application programming interface (API) that facilitates the integration of third-party or custom-built trading tools ^[2]. This feature enables users to automate certain aspects of their trading strategies, build custom tools, and backtest their approaches.
Real-time Order Books: Traders can access real-time order books across all available markets, allowing for quick execution of trades and better market insights ^[3].
Enhanced Security: Advanced Trade maintains robust security measures, including two-factor authentication (2FA), biometric authentication for mobile devices, and address whitelisting ^[4]. Additionally, USD balances are FDIC-insured up to $250,000, providing an extra layer of protection for users’ funds.

By leveraging these advanced features, traders can potentially enhance their coinbase earnings and gain a competitive edge in the cryptocurrency market. The combination of sophisticated tools, lower fees, and a wide range of trading pairs makes Advanced Trade an attractive option for both experienced and aspiring crypto traders looking to upgrade their trading experience.

Yield Farming with Coinbase: Exploring DeFi Opportunities

Understanding yield farming

Yield farming, also known as liquidity mining, has emerged as a popular strategy in the decentralized finance (DeFi) space. It involves users contributing their digital assets to liquidity pools or locking them into new protocols in exchange for rewards ^[5]. This process allows cryptocurrency holders to generate passive income by leveraging their assets in various DeFi platforms.

The concept of yield farming is rooted in the broader DeFi ecosystem, which aims to create an entire digital alternative to traditional financial services without the associated costs of office towers, trading floors, and banker salaries ^[6]. DeFi platforms offer a wide range of financial services, including lending, borrowing, trading, and saving, all operating on public blockchains, primarily Ethereum ^[6].

One of the key advantages of yield farming is the potential for higher returns compared to traditional financial instruments. Users can earn interest and rewards every minute, as opposed to once per month in conventional banking systems ^[6]. Additionally, yield farmers often receive governance tokens as rewards, which not only provide voting rights in the protocol but can also be traded on exchanges, adding another layer of potential earnings ^[7].

Coinbase’s role in DeFi

While Coinbase itself is a centralized exchange, it has taken steps to support the growth of the DeFi ecosystem through its subsidiary, Coinbase Cloud. This division builds infrastructure for protocols that underpin DeFi solutions, offering various services to facilitate the development and operation of DeFi platforms ^[5].

One of Coinbase Cloud’s key offerings is Query and Transact, which provides an easy on-ramp for developers wishing to access blockchain data ^[5]. This service enables enterprises, DAOs, foundations, and individuals to query data from and write data to their preferred blockchain without the need for extensive in-house engineering expertise ^[5]. By offering fully managed read/write infrastructure, Coinbase Cloud allows DeFi developers to focus on their products rather than infrastructure concerns ^[5].

Coinbase Cloud also supports fundamental aspects of the DeFi ecosystem, such as:

Offering query and transact nodes for Ethereum
Powering eth2 staking
Testing network upgrades
Running public validators for various blockchain networks
Operating seed nodes to maintain smooth operations of certain blockchains ^[5]

These services contribute to the overall stability and growth of the DeFi ecosystem, indirectly supporting yield farming opportunities for users.

It’s important to note that while yield farming offers potential high yields, it also comes with significant risks. Smart contract vulnerabilities, system design flaws, liquidation risks, and market volatility can all impact the safety and profitability of yield farming strategies ^[8]. As the DeFi space continues to evolve rapidly, users should approach yield farming with caution and conduct thorough research before participating in any DeFi protocol.

Coinbase Earn: Diversifying Your Crypto Portfolio

Coinbase Earn offers users an innovative way to diversify their cryptocurrency portfolios while learning about different digital assets. This program provides an educational platform where users can watch informative videos about specific cryptocurrencies and complete quizzes to test their knowledge ^[9]. Upon successful completion of these quizzes, participants are rewarded with small amounts of the featured cryptocurrency, allowing them to expand their holdings without additional investment.

Earning new tokens

The Coinbase Earn program presents a unique opportunity for users to acquire new tokens while enhancing their understanding of various blockchain projects. Here’s how it works:

Educational videos: Coinbase creates tutorial videos that explain the fundamentals and use cases of different cryptocurrencies ^[9].
Knowledge assessment: After watching the videos, users are required to complete a simple quiz to demonstrate their comprehension of the material ^[9].
Crypto rewards: Upon successfully answering the quiz questions, participants receive a small amount of the featured cryptocurrency directly in their Coinbase account ^[9].

This approach not only incentivizes learning but also allows users to gain exposure to new cryptocurrencies without financial risk. For example, users can earn up to $3.00 worth of NEAR tokens by learning about the NEAR Protocol, a blockchain platform designed for simplicity and scalability ^[9]. Similarly, they can earn $3.00 in SHPING tokens while discovering how the Shping app utilizes blockchain technology to enhance the shopping experience ^[9].

It’s important to note that these earning opportunities are time-sensitive and subject to availability. The amounts offered for each quiz may vary, and users are only eligible to earn once per quiz after verifying their identity ^[9].

Building a diverse crypto holding

Coinbase Earn serves as a gateway for users to build a diverse cryptocurrency portfolio without the need for significant upfront investment. By participating in various Earn campaigns, users can accumulate small amounts of different tokens, which can potentially grow in value over time.

This approach to portfolio diversification offers several benefits:

Risk mitigation: By holding a variety of cryptocurrencies, users can spread their risk across different projects and technologies.
Exposure to emerging projects: Coinbase Earn often features newer or less well-known cryptocurrencies, giving users early access to potentially promising projects.
Educational value: The program provides users with a solid foundation of knowledge about each cryptocurrency they earn, enabling more informed investment decisions in the future.
Cost-effective diversification: Users can diversify their holdings without incurring additional costs or fees associated with purchasing multiple cryptocurrencies.

While Coinbase Earn offers an excellent starting point for diversification, users should consider complementing this strategy with other Coinbase features. For instance, the platform’s staking options allow users to earn rewards on certain cryptocurrencies by participating in network validation. Staking can provide returns of up to 12% APY, depending on the asset, and offers flexibility with a minimum stake of just $1.00 ^[10].

Additionally, Coinbase One members can benefit from boosted staking rewards, further enhancing their potential returns and portfolio growth ^[10]. By combining Coinbase Earn with staking and other investment strategies, users can create a well-rounded and diverse cryptocurrency portfolio that aligns with their financial goals and risk tolerance.

Arbitrage Opportunities on Coinbase

Crypto arbitrage trading has emerged as a popular strategy for capitalizing on price differences of cryptocurrencies across various exchanges, including Coinbase. This approach allows traders to potentially profit from market inefficiencies by buying assets at a lower price on one platform and selling them at a higher price on another ^[11].

Identifying price discrepancies

To identify arbitrage opportunities, traders need to monitor price differences across multiple exchanges. Coinbase Pro, now integrated into the main Coinbase platform as Advanced Trade, offers tools that can help users spot these discrepancies ^[12]. Additionally, traders can leverage third-party software solutions to streamline the process of tracking and comparing cryptocurrency prices across various exchanges.

One such tool allows users to set up a dashboard to monitor specific cryptocurrency pairs, such as BTC/USDT, across multiple providers including Coinbase, Binance, and Upbit ^[13]. This dashboard typically displays a table with the latest ask and bid prices from each exchange, making it easier to identify potential arbitrage opportunities ^[13].

When looking for arbitrage opportunities, traders should focus on:

Significant price differences between the ask price on one exchange and the bid price on another.
Calculating potential profit by subtracting the higher bid price from the lower ask price.
Accounting for transaction fees and any withdrawal or deposit limits on the exchanges ^[13].

It’s important to note that the key factor in crypto arbitrage trading is speed. Cryptocurrency prices fluctuate rapidly, and a price drop or rise can occur at any moment. Therefore, being alert and quick is crucial for conducting successful cryptocurrency arbitrage ^[14].

Executing arbitrage trades

Once a price discrepancy has been identified, executing the arbitrage trade involves buying the cryptocurrency on the exchange with the lower ask price and selling it on the exchange with the higher bid price ^[13]. This process needs to be completed swiftly to ensure the price difference doesn’t disappear before the trade is finalized ^[14].

Given the speed required for crypto arbitrage, many traders rely on automated trading software or bots. These tools can monitor prices across multiple platforms in real-time and execute trades much faster than a human trader could, potentially increasing the chances of capturing arbitrage opportunities ^[14].

Coinrule is one such tool that allows users to create automated trading strategies on Coinbase Pro without requiring coding skills ^[12]. It offers features such as:

Creating bot strategies from scratch or using prebuilt rules that have historically been traded on the Coinbase Pro exchange.
Running demo trades for free to test strategies in the cryptocurrency marketplace.
Enabling users to take advantage of market opportunities even while they sleep ^[12].

When executing arbitrage trades, it’s essential to consider the following:

Transaction fees: These can significantly impact the profitability of arbitrage trades.
Withdrawal and deposit limits: Exchanges may have restrictions that could affect the execution of trades.
Market liquidity: Ensure there’s sufficient liquidity to complete both the buy and sell orders quickly.

By leveraging these tools and strategies, traders can potentially outpace the crypto market and capitalize on price discrepancies across different exchanges, including Coinbase ^[12]. However, it’s important to remember that arbitrage trading carries risks, and thorough research and careful execution are necessary for success.

Coinbase Ventures: Investing in Promising Crypto Startups

Coinbase Ventures, the investment arm of Coinbase, has emerged as a significant player in the cryptocurrency ecosystem. Since its inception in Spring 2018, Coinbase Ventures has rapidly expanded its portfolio to include over 150 investments across various sectors of the crypto industry ^[15]. This strategic approach to investing has positioned Coinbase at the forefront of innovation in the decentralized world.

How Coinbase Ventures works

Coinbase Ventures operates with a unique and decentralized structure that mirrors the company’s commitment to the principles of decentralization. The investment team, led by Shan Aggarwal, Head of Corp Dev, consists of passionate employees who manage the venture arm in addition to their regular responsibilities ^[15]. This lean and agile approach allows Coinbase Ventures to make swift investment decisions without the constraints of traditional venture capital structures.

The investment philosophy of Coinbase Ventures is straightforward: they invest in exceptional teams executing the most promising ideas in crypto ^[15]. This approach has led to investments in a diverse range of projects, including:

International exchanges like Bitso in Latin America
Crypto tax solutions such as CoinTracker and TaxBit
NFT marketplaces like Dapper Labs and OpenSea
Infrastructure projects including Spacemesh and Starkware
Decentralized finance (DeFi) platforms such as Uniswap and Compound ^[15]

Notably, Coinbase Ventures does not limit its investments to companies that are strategically aligned with Coinbase’s immediate interests. They are open to investing in potential competitors, recognizing that the crypto industry is still in its early stages and that fostering overall ecosystem growth is paramount ^[15].

Potential returns from early-stage investments

While Coinbase Ventures does not primarily focus on generating returns on investment (ROI), their performance has been impressive. The team reports that they are keeping pace with the best venture capital funds in terms of returns ^[15]. This success can be attributed to their deep understanding of the crypto space and their ability to identify promising projects early on.

The potential for significant returns from early-stage investments in the crypto sector is substantial. Coinbase Ventures draws a parallel to the early days of tech giants like Google or Facebook, imagining the potential if they had invested in emerging internet companies like Stripe or Shopify ^[15]. By applying this strategy to the crypto ecosystem, Coinbase Ventures aims to capitalize on the growth of groundbreaking projects that are shaping the future of decentralized finance and blockchain technology.

Recent investments by Coinbase Ventures showcase the diverse range of projects they support:

A USD 225 million round for Monad Labs, a layer 1 blockchain project challenging competitors like Solana and Sui ^[16]
Participation in funding rounds for projects like ZkLink, a zero-knowledge rollup-backed decentralized trading infrastructure ^[16]
Support for EigenLayer, which aims to extend crypto-economic security to applications built on the Ethereum network ^[16]

These investments demonstrate Coinbase Ventures’ commitment to fostering innovation across various sectors of the crypto industry, from infrastructure development to decentralized applications and financial services.

Leveraging Coinbase Analytics for Informed Decision Making

Using Coinbase’s Market Data

Coinbase offers a comprehensive set of market data tools that can significantly enhance crypto investment strategies, services, and research. Through Coinbase Markets, the platform provides access to Central Order Books, which are utilized by clients via Coinbase Advanced Trade and Coinbase Exchange trading platforms ^[17]. This centralized system ensures that all traders have equal real-time access to market data, fostering a fair and transparent trading environment.

The market data available through Coinbase comprises several key components:

All Limit Orders placed on the Order Book (price, quantity, and time)
Displayed amounts of Iceberg Limit Orders (price, displayed quantity, and time)
Canceled Orders on the Order Book (price, quantity, and time)
All Fills or Executions (price, quantity, and time) ^[17]

Coinbase offers various data feeds, tiers, and packages to cater to different user needs. Traders can access this information through the Web Interface or the Coinbase Advanced Trade and Coinbase Exchange APIs ^[17]. For those requiring enhanced limit WebSocket Market Data subscriptions, additional information is available on the Coinbase help center ^[17].

To leverage this data effectively, traders can explore individual data products and aggregated packages ^[18]. Coinbase provides historical datasets for various cryptocurrencies, including:

Bitcoin (BTC): Trade data, hourly and daily OHLCV, and daily prices since January 19, 2015
Ethereum (ETH): Similar data sets available from May 23, 2016
Litecoin (LTC): Data available from August 17, 2016 ^[18]

These datasets offer valuable insights into market trends, volatility, and trading patterns, enabling traders to make more informed decisions.

Technical Analysis Tools

Coinbase’s advanced trading view equips users with a wide range of charts and indicators to inform their trading strategies ^[19]. While past performance cannot predict future outcomes, these tools provide different perspectives on market behavior, helping traders spot trends and form opinions on potential opportunities.

Some key technical analysis tools available on Coinbase include:

Relative Strength Index (RSI): This indicator measures the strength of an asset’s upward and downward price movement over time, providing insights into market sentiment and potential overbought or oversold conditions ^[19].
Simple Moving Average (SMA): The SMA shows the average price of an asset over a specified period, helping traders understand overall price movements and identify potential support and resistance levels ^[19].
Exponential Moving Average (EMA): Similar to the SMA but with more weight on recent data, the EMA is better suited for identifying short-term trends and responding quickly to new price movements ^[19].
Moving Average Convergence Divergence (MACD): This indicator compares two moving averages to identify potential trend changes and momentum shifts in the market ^[19].

These tools, along with others available on the platform, allow traders to perform in-depth technical analysis. By examining patterns in market data, traders can identify trends and make predictions about future market movements ^[20]. This numbers-driven approach assumes that current prices reflect all known information and market forces such as supply and demand ^[20].

To maximize the benefits of these analytics tools, experienced traders often use multiple indicators in conjunction. This approach provides a more comprehensive understanding of market conditions and helps in formulating robust trading strategies. By leveraging Coinbase’s advanced analytics and market data, traders can gain valuable insights into market sentiment, identify potential trading opportunities, and make more informed decisions in the dynamic cryptocurrency market.

Coinbase Prime: Institutional-Grade Trading and Custody

Coinbase Prime stands as a comprehensive solution for institutional investors seeking to navigate the cryptocurrency market with advanced tools and robust security measures. This full-service prime brokerage platform is designed to meet the sophisticated needs of large-scale investors, hedge funds, and financial institutions ^[21].

Features of Coinbase Prime

Coinbase Prime offers a suite of features tailored for institutional clients:

Advanced Trading Tools: The platform provides access to deep liquidity pools and advanced algorithmic orders, enabling efficient execution of large-scale trades ^[22]. Institutions can leverage smart order routing and an advanced trading platform to implement complex strategies seamlessly ^[23].
Comprehensive Market Data: Real-time market data APIs are essential for institutional trading strategies. These tools provide instantaneous access to market movements, price changes, and crucial trend analyzes ^[22]. This immediate data access enhances decision-making, operational efficiency, and supports rigorous compliance and risk assessment processes ^[22].
Institutional-Grade Custody: Coinbase Prime offers secure storage solutions for digital assets, featuring multi-signature wallets, offline storage, and insurance coverage ^[21]. Institutions can move assets in and out of cold storage, stake, or participate in governance—all from a single platform ^[23].
Financing Solutions: The platform provides a range of financing options, including lending, margin trading, and shorting capabilities. These tools enable institutions to fine-tune their trading strategies for both bull and bear markets, promoting capital efficiency at scale ^[23].
Dedicated Account Management: Institutional clients benefit from personalized support to navigate the complexities of cryptocurrency trading and custody ^[21].

Earning Potential for Large-Scale Investors

Coinbase Prime unlocks significant earning potential for institutional investors by providing:

Access to Cryptocurrency Markets: The platform enables large-scale investors to participate in the growing cryptocurrency ecosystem with institutional-grade tools and security ^[21].
Sophisticated Trading Strategies: With advanced order types and algorithmic trading capabilities, institutions can implement complex strategies to maximize returns ^[21].
Arbitrage Opportunities: The platform’s real-time data APIs are particularly valuable for executing strategies like DEX-CEX arbitrage. Institutions can swiftly compare and capitalize on price differentials between decentralized and centralized exchanges, potentially leading to significant gains ^[22].
Staking and Governance: Coinbase Prime allows institutions to participate in staking and governance activities, providing additional avenues for generating returns on their cryptocurrency holdings ^[23].
Risk Management: The platform’s comprehensive data and analytics tools help institutions optimize their trading approaches and enhance risk management processes, crucial for maintaining a competitive edge in the dynamic institutional crypto trading landscape ^[22].

It’s important to note that while Coinbase Prime offers these advanced features, all investments involve risk, including the risk of loss. Institutions should consult their advisors before making investment decisions, as trading venues not connected to Coinbase Prime may offer better pricing in some instances ^[24].

Building a Passive Income Stream with Coinbase

Dividend-paying cryptocurrencies

As the cryptocurrency market evolves, investors are discovering new ways to generate passive income through their digital assets. One such method is through dividend-paying cryptocurrencies. These tokens offer rewards simply for holding them, similar to traditional dividend-paying stocks.

Coinbase has introduced features that allow users to earn rewards on certain cryptocurrencies. For instance, users can earn rewards by contributing to the security of proof-of-stake networks through staking. By “locking” a portion of their holdings into a staking pool for a specified period, investors can earn rewards in the form of additional tokens ^[25].

However, it’s important to note that staking rewards are typically paid in the native cryptocurrency, which can be subject to price volatility. For those seeking a more stable option, Coinbase offers rewards on dollar-pegged stablecoins like USD Coin (USDC). Coinbase customers can earn up to 4.00% APY on their USDC holdings, providing a low-risk investment opportunity ^[25].

Automated trading strategies

For more advanced users looking to maximize their earning potential, Coinbase supports automated trading strategies through various tools and platforms. These strategies can help users capitalize on market movements and generate passive income even when they’re not actively monitoring the markets.

One such tool is Coinrule, which allows users to set up automated trading strategies without requiring coding skills. This platform enables traders to create custom rules or use pre-built strategies to execute trades automatically on Coinbase Pro ^[26].

Key features of automated trading on Coinbase include:

Customizable trading bots: Users can create or utilize existing presets to implement sophisticated trading strategies ^[27].
Dollar-Cost Averaging (DCA) bots: These bots execute trades at preset intervals, helping users average out the cost of their positions over time ^[27].
Grid trading strategy: This approach involves setting up a grid of orders within a specified price range, potentially generating profits during periods of sideways market movement ^[27].
Rising and Stable strategies: These pre-configured bot strategies are designed for different market conditions, allowing users to adapt to changing trends ^[27].
Integration with TradingView indicators: Advanced traders can incorporate technical indicators from TradingView into their bot’s deal start conditions, further refining their strategies ^[27].

Automated trading offers several advantages for building a passive income stream:

24/7 market monitoring: Bots can execute trades at any time, ensuring no opportunities are missed ^[26].
Emotion-free trading: Automated strategies remove emotional decision-making from the trading process.
Backtesting capabilities: Users can test their strategies using virtual capital in real market conditions before risking actual funds ^[26].

By leveraging these automated trading tools on Coinbase, investors can potentially create a more consistent and hands-off approach to generating income from their cryptocurrency holdings. However, it’s crucial to remember that all trading carries risks, and users should only invest what they can afford to lose.

Conclusion

Coinbase has established itself as a versatile platform, offering a wide array of strategies to make money in the cryptocurrency space. From advanced trading tools and yield farming opportunities to educational rewards and institutional-grade services, Coinbase provides users with multiple avenues to potentially boost their earnings. The platform’s commitment to innovation, as shown through Coinbase Ventures, also opens doors to early-stage investment opportunities in promising crypto startups.

While these strategies present exciting possibilities, it’s crucial to remember that the cryptocurrency market is highly volatile and carries significant risks. To make the most of Coinbase’s offerings, users should thoroughly research and understand each option, carefully consider their risk tolerance, and potentially seek professional advice before making investment decisions. By leveraging Coinbase’s tools and services wisely, users can work towards building a diversified crypto portfolio and exploring various income streams in this dynamic digital asset landscape.

FAQs

What is the quickest method to earn money using Coinbase?
Staking your cryptocurrencies on Coinbase is one of the fastest ways to begin earning money. By depositing your crypto into a staking program, you can start receiving payouts, which in many cases occur daily or even hourly.

How can I generate passive income through Coinbase?
Coinbase provides a passive income opportunity by offering interest rewards on USDC, a stablecoin pegged to the U.S. dollar. As of the latest information, Coinbase offers a 4.6% interest reward on USDC holdings, presenting a lucrative method for earning passive income.

Is there a program on Coinbase that allows you to earn while you learn?
Yes, Coinbase features the “Coinbase Earn” program, which enables users to earn various cryptocurrencies while engaging with educational content about them.

Have people achieved significant earnings on Coinbase?
Indeed, several individuals have earned substantial amounts, with some even becoming millionaires by trading cryptocurrencies on Coinbase Pro and other similar platforms. The volatile nature of the cryptocurrency market offers numerous opportunities for significant profits.

References

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