Cryptocurrency Bitcoin Trading Ultimate Beginners Guide – John Piper and Tim Lowe
Welcome to my guide to all things ‘Crypto’. I started to become curious about cryptocurrencies about five years ago when I recognised their potential for small and medium businesses who got stung for a 3% charge on transactions and often waited anything from a few days to a month to get their money. As Bitcoin began to slowly get more popular it was obvious that these types of currency would be here to stay as a unique way for everyone to buy, sell and pay for services without the excessive charges Banks seem to be able to get away with.
I’m going to give you all the information you need to make a profit trading cryptocurrencies and even show you how to get them for FREE !
This blog is aimed at the beginner so I’ve put everything you need in one place so that you can understand what Cryptocurrencies like Bitcoin are, which ones you might be interested in making money with, where to buy them and which proven strategies are best for your profits. So lets get started !
So What is a Cryptocurrency?
A crypto currency is a digital asset designed to be easy to exchange between people. You actually already use digital currency ….every time you use your bank card to pay for something. You haven’t handed a physical note or coin over , but the money has been deducted from your bank account securely and safely and the shop you bought something from has now been paid too. The Bank ‘handles’ the transaction for a small fee they charge the shopkeeper and a series of computers at the bank keep tabs on who gave who what money.
Just like the digital currency you use when paying for stuff with your bank card digital currencies like Bitcoin are exactly the same. The only real difference is that now instead of a bank handling your transaction a huge network of computers all round the world all keep track of who has given who money and what everyones balance is in their digital wallets.
By bypassing a central bank you avoid the delays and charges associated as well as the costs of varying exchange rates between different currencies. You can think of a digital currency as a kind of ‘peoples universal coin’ that is welcome anywhere without the need for a bank or a government.
What is a Cryptocurrency – A Recap
Although a lot of things sound confusing with Cryptocurrency once you grasp the basic reason of why it exists and how it works everything else falls in to place. Lets do one final recap so you are absolutely happy with what it is before we start looking at all the more interesting money making parts !
Traditionally when you purchase an item of clothing online or in a store you will present your financial card or bank details at the point of sale. This might be in the form of a debit bank card. The shop owner will then use a card reader which will securely check with your bank that you have enough money in your account.
Once the card reader says ‘APPROVED’ they print you a receipt and you are on your way with the item you purchased with the shop owner happy that the cost of the item will be sent to his bank account within a day or two minus a banking charge of a few percent. With digital currencies you no longer need a central bank to approve a transaction of money being passed between two people ( you and the shopkeeper for example).
So now imagine a shop where you can ‘walk in’ and simply ask to purchase an item and you and the shopkeeper and anyone else with that digital currency already know how much everyone has ( they don’t know your identity and cant take your money without your permission , only your unique account number and your balance).
So What is a Blockchain ?
When you approve sending the money direct to the shopkeeper everyone using this currency all automatically and separately take a note of this transaction so everyone is in agreement that it happened and what the new balances are for everyone. In this way the money is transferred without a cost and instantly. These financial records are known as ‘blocks’ so you will often hear people referring to Blockchains when they talk about these records.
The Origins of Cryptocurrency
So we now know what cryptocurrency is so when did it all start ?
It all started in 2008 with a A paper called Bitcoin – A Peer to Peer Electronic Cash System was posted to a mailing list discussion on cryptography. It was posted by someone calling themselves Satoshi Nakamoto, whose real identity remains a mystery to this day.
By 2009 Bitcoin had been created and people were encouraged to help with the computing power needed to help with all the transactions. In exchange for allowing their computers to be used to help keep track of everything they were rewarded with a little bit of Bitcoin. This became known as ‘mining’
What is Cryptocurrency Mining ?
The advantages for a cost free and rapid transaction for the World is huge and will make doing business for everyone easier and faster. Naturally the big greedy banks are worried as they have had a huge profitable monopoly with online financial transactions for years. The Blockchain I mentioned earlier acts as a very public financial transaction database so that EVERYONE can see all the transactions that happen each day.
Digital Currencies need a lot of computing power to keep tabs on all these transactions so instead of having one large and vulnerable single computer or server in a building like banks do, digital currencies spread the computing required across thousands and thousands of people with powerful computers and pay them a very small amount of coin directly for doing these coded and secure transactions. This is what people are talking about when they mention ‘mining’ a digital currency.
Where do you buy and sell Cryptocurrency ?
Buying and selling Cryptocurrencies is relatively straightforward. There are a number of online Exchanges you can use. You will need to fill out an online form and some will require that you have proof of ID in order to open an account. Frustratingly many will not let you fund the exchange accounts with your bank card so you may need to do a bank transfer into your new Cryptocurrency Exchange Account in order to get started.
List of the best cryptocurrency exchanges 2019
I’ve created a useful list for you here of a few Cryptocurrency Exchanges you can look at. Annoyingly there is no one exchange that ‘stocks’ all the different Cryptocurrencies out there so you will probably find you will actually need about 2 or 3 Exchange accounts if you want access to trading all the coins For now I suggest you just pick one to get started!
- Binance: Offers mobile app and probably the fastest growing exchange. If you need to pick only one, this is the best and #1 in 2019.
- Bitmex: The whale of cryptocurrency exchanges. You can do margin trading if that’s your thing ( more about that later !)
- Bitfinex: Offers mobile app and a popular exchange. You can also lend cryptos here to earn interest.
- KuCoin: One of the strongest exchanges that also offers a mobile app. They have been constantly updating their mobile app to make it one of the best in the industry.
- Gate.io: Many new cryptos can be found here. Unique approach and something you should sign up for in 2018. Also offers mobile app just like KuCoin and Binance.
- Changelly: Perfect for quick crypto exchange. Easy to use and great for beginners.
- Bittrex: Another high-quality exchange with lots of coins.
what are Cryptocurrency wallets?
Wallets are software which can be used to view cryptocurrency balances and make transactions. Think of them like an electronic place to store your Cryptos.
Each wallet type is a little bit different, but in general, any given wallet will work with one or more cryptocurrencies and will be able to store one or more cryptocurrency-specific “public addresses.”
Public addresses are like cryptocurrency-specific account numbers, they can be used to receive a specific type of cryptocurrency (for example, to receive Bitcoin, you need a Bitcoin address) and can be shared publicly.
Each address relates back to all transactions associated with that address on a coin’s blockchain.
A wallet lets you view balances associated with an address and lets you move funds around on the blockchain as long as you are the owner of the address.
Proving you own the address is done with a private key (a secret code associated with a public address) in non-custodial wallets. In custodial wallets, the custodian (a third party like an exchange, broker, etc) holds the key for you, and it is just a matter of inputing your password into their wallet app.
Essentially a wallet is like your online bank account platform, your address is like your account number, the blockchain is like the bank’s ledger, and with custodial wallets the custodian is a bit like your banker.
Why NOw is a superb time to be investing in Cryptocurrencies
I’m sure you will have seen various articles and TV news over the past year or two presenting fierce opinions from people on whether digital currencies are here to stay or will be outlawed. If you look past the people making the loudest noises and calmly and unemotionally look at the signs beneath the surface there are a couple of key areas that should give you the confidence to easily see that digital currencies are here to stay.
Globally-renowned businesses such as Microsoft, Paypal, and Shopify accept Bitcoin. There is simply no way entities of this size would consider doing this unless they had taken a corporate decision at the highest level that this method of payment was here to stay. Members of parliament in the UK, and senators in the USA, have already been forced to disclose their significant holdings in cryptocurrencies and are actively lobbying for the digital currency industry already.
Digital currencies are expected to be about to be allowed to be traded within an investment portfolio known as an ETF or Exchange Traded Fund. The implications for this are vast. When gold and silver were approved to be traded in an ETF their price skyrocketed and stayed there ever since.
Case Study – John Piper turned $4000 into $38,000 in only 6 months ! Then $200,000
Famous Investing author and good friend of mine John Piper began investing in digital currencies and started with just $4000. Johns initial $4000 grew to $38,000 6 months later – so he managed to double his money 4 times (4x) and a bit, in 6 months. After another 6 months, his initial investment was worth about $85,000. In December 2017 he saw spectacular growth and his funds exceeded $200,000.
Cryptocurrency as part of your investments as a whole
In one of my Beginners Blogs about investing in the Stockmarket I talk about building a portfolio and asset allocation. You can read about this here.
How to INvest in Cryptocurrency
The main principle of investing in cryptocurrency is simple. You need to identify coins that are likely to increase in value as they become more popular, and spread your risk across a number of coins to reduce the chances of one coin causing you an issue.
This blog contains a list of the top coins to potentially invest in for 2019.
Short Term trading
This is a huge topic and superby covered in a course from renowned trading John Piper here www.yahurasystem.co.uk
What is Cryptocurrency Arbitrage ?
Imagine that you see an item for sale on ebay thats a few pounds cheaper than on Amazon. Even with the postage costs you could still be in profit. What you could do is buy the item on ebay, then sell the item on Amazon for a profit and get the person on ebay to post the item directly to the person you sold it to.
If you dont think this is possible it really is and its called ‘dropshipping’. So what has this got to do with Cryptocurrencies?
There are lots of exchanges for cryptocurrencies, and the prices on these exchanges fluctuate all day. There are times when you can buy a coin on one exchange for a lower price and then sell it straight away on another exchange for a higher price.
This principle of Arbitrage as its known is actually the basis of a rather superb little system call Buncejar that does the same thing with Horse Racing Bets ! You can find out more here www.buncejar.com.
With cryptocurrency trading still in its infancy and markets spread all around the world, there can sometimes be significant price differences between exchanges. Cryptocurrency arbitrage allows you to take advantage of those price differences, buying a crypto on one exchange where the price is low and then immediately selling it on another exchange where the price is high.
Be aware that exchange fees may eat into your profits and that some exchanges have a rather large minimum transaction size for this.
Can I be hacked with Cryptocurrency ?
There have been widely publicized frauds, scams, and hacks which have plagued individual investors and even major cryptocurrency exchanges in their short history. Part of the issue is simply that the technology and the space itself are new. While this makes cryptocurrencies like bitcoin incredibly exciting–and potentially very profitable–investments, it also means that there are those looking to capitalize on security holes before they are corrected.
If you use a well respected and known digital wallet with a well known broker such as the the ones i recommend in this blog and make sure you NEVER reveal your encryption code to anyone you’ll find the chances of you being hacked are possibly lower than your real bank account.
Top list of Cryptocurrencies to trade in 2019
So lets take a look at my personal list of Cryptocurrencies to trade for 2019
Bitcoin (BTC or XBT)*
https://en.wikipedia.org/wiki/Bitcoin “Bitcoin is a digital asset invented by Satoshi Nakamoto that was designed to work as a currency. It is commonly referred to as digital currency, digital cash (or digital Gold), virtual currency, electronic currency, or cryptocurrency. Bitcoin does not necessarily work well as a currency (but that is changing).
” The leader of the pack, Bitcoin was created in 2009 and has led the way ever since. Not only that but those who hold Bitcoin had a great bonus in August 2017 when Bitcoin Cash forked (meaning all holders of Bitcoin got free Bitcoin Cash – which later saw a high at $4000). Bitcoin has weathered every storm and there have only been two bad times to buy so far. These being in December 2017 when we saw a mania possibly brought on by the introduction of CBOT futures, the other time being December 2013 when something similar happened – albeit if you had bought in December 2013 and held (or HODL’d in crypto parlance – meaning Held On for Dear Life) you would be well up. Bitcoin has become investment grade and we now have the CBOT Futures and we will shortly have an SEC approved ETF – deferred from the 10th August but, if not then, in the foreseeable future. Regulation will open the institutional floodgates and that weight of money will push prices UP! The future is looking VERY rosy!! Bitcoin (BTC) is currently trading at £3,996.73 (0.20%)
*For larger sums, £5000+, I can also recommend UK exchange Coinfloor
https://en.wikipedia.org/wiki/Ethereum “Ethereum is an open source, decentralized platform that allows the creation of agreements of intelligent contracts between pairs, based on the blockchain model. Any developer can create and publish distributed applications that make intelligent contracts . Ethereum also provides a cryptocurrency chip called ‘ether’. You can exchange ether between different accounts and it is also used to compensate the participating nodes for the calculations made. Ethereum was proposed by Vitalik Buterin, a developer of digital currency. The development of the same was achieved thanks to a collective financing platform, from July to August 2014. The system finally came out on July 30, 2015.”Ethereum has been no. 2 for some years. Many of the ICOs (Initial Coin Offerings) that come out are based on Ethereum and Ethereum is often needed to buy coin in an ICO. Ethereum is a little slow compared to say NEO, but its market cap is a factor as are its track record and team. Ethereum (ETH) is currently trading at £135.84 (0.44%)
https://www.investopedia.com/tech/what-is-eos/ “Calling itself the most powerful infrastructure for decentralized applications, EOS is a blockchain-based, decentralized system that enables the development, hosting, and execution of commercial-scale decentralized applications (dApps) on its platform.” An Ethereum competitor with potentially better tech.
Bitcoin Cash (BCH)
https://www.investopedia.com/terms/b/bitcoin-cash.asp “Bitcoin cash is a digital currency created in August 2017, arising from a fork of Bitcoin Classic. Bitcoin Cash increased the size of the blocks, allowing more transactions to be processed more quickly. Since its launch, Bitcoin faced pressure from community members on the topic of scalability. Specifically, that the size of blocks – set at 1 megabyte (MB), or a million bytes, in 2010 – would slow down transaction processing times, thus limiting the currency’s potential, just as it was gaining in popularity. The block size limit was added to the Bitcoin code in order to prevent spam attacks on the network at a time when the value of a Bitcoin was low. By 2015, the value of Bitcoin had increased substantially and average block size had reached 600 bytes, creating a scenario in which transaction times could run into delays as more blocks reached maximum capacity.” Created by a fork from Bitcoin and with real potential in fact it has been said that Bitcoin Cash might be come THE Bitcoin – I understand this occurs if it achieves greater turnover and acceptance. In this sense holding BCH can be seen as a hedge against holdings of Bitcoin. However as we now have Bitcoin Futures with an ETF in the pipeline this now seems less likely. But Bitcoin Cash is now a real contender when it comes to payment systems. This was, of course, the original aim of Bitcoin itself but that is now more akin to digital gold!
Stellar Lumens (XLM)
https://coincentral.com/what-is-stellar-lumens-a-beginners-guide/ “On its website, Stellar Lumens advertises itself as an open-sourced, distributed payments infrastructure, built on the premise that the international community needs “a worldwide financial network open to anyone.” Stellar Lumens will fill this need, connecting individuals, institutions, and payment systems through its platform. In doing so, the Stellar Lumen’s team wants to make monetary transactions cheaper, quicker, and more reliable than they are under current systems. In addition, their protocol would connect people from all over the world by allowing for more efficient cross-border payments.” Often mentioned in dispatches and highly rated XLM is one of my favourite coins as it is with many others. XLM is already working with some very well known brands and deserves its place in my top 10 (and its place in the top 20 coins as per market cap).
6. Litecoin (LTC)
https://www.weusecoins.com/what-is-litecoin/ “Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances. Litecoin features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. With substantial industry support, trade volume and liquidity, Litecoin is a proven medium of commerce complementary to Bitcoin. The official website declares this is “The CryptoCurrency for Payments” and is one of the contenders for the crypto payments coin (along with BCH and XLM)) – albeit there will be more than one winner.
https://www.investopedia.com/tech/introduction-monero-xmr/ “A lot of digital currencies have launched in recent years. Many aimed to enhance privacy and anonymity, although their success varied. A few of these digital currencies allow public viewing of all transactions, while others make privacy optional. And still others keep the privacy feature as strictly implicit. The digital currency Monero has achieved a high level of popularity and acceptance for its privacy-oriented features. A coin with additional security and privacy – a basic human right IMHO.
https://cryptobriefing.com/what-is-zec-introduction-to-zcash/ “Zcash is a digital currency just like Bitcoin and Litecoin, but with a few improvements to the structure. The Zerocoin protocol that became the Zcash cryptocurrency in 2016 was created by the Zcash Company, founded by Zooko Wilcox-O’Hearn. It uses cryptography to enhance user privacy, so Zcash transactions can either by transparent like Bitcoin, or shielded through a zero-knowledge proof called zk-SNARKs. While this concept sounds shady to law enforcement, the Zcash Company insists it was developed to act more like fiat currency than to facilitate any type of illegal or criminal activity. Another major contender for the cash of the future with additional security and privacy but not to the extent of XMR. Zcash is currently considered undervalued.
https://coincentral.com/what-is-neo-cryptocurrency/ “NEO is a next generation smart economy platform (formerly Antshares) and means new and young in Greek. NEO has had a monumental rise to fame and most know NEO for its explosive growth. However, when you look under the hood there is a lot to see.” The Chinese Ethereum which I bought when it was still Antshares. The Chinese are many, are technically minded, and favour their own – hence my purchase over a year ago. I’m up around 20x since then! But plenty more to come.
https://ukcryptocurrency.com/iota/introduction-what-is-iota/ “Unlike Bitcoin which uses a blockchain architecture for maintaining it’s ledger, IOTA uses the ‘Tangle’ which is a Directed Acyclic Graph, known as a DAG. In summary the Tangle solves both the scalability and transaction fee issues faced by Bitcoin (And most digital currencies) by requiring the Sender in a transaction to perform a kind of proof of work which approves two transactions. Thus, the act of making a transaction and validating transactions are coupled. This removes dedicated miners and makes the system fully decenteralised – those making transactions (the systems ‘users’) are the only actors who can affect the system (whereas in bitcoin miners are not ‘using’ the system, rather they are simply enabling it to operate). Here is a quote from the website – The IOTA Foundation’s vision extends to many different realms which are all dependent on access to a single source of truth. Data is only as valuable as it is valid. Ensuring what is true is precisely what Distributed Ledger Technology enables. You can see the rest of this statement at https://www.iota.org/the-foundation/our-vision – interesting stuff!
List of Speculative Cryptocurrencies for 2019 for Big Potential Profits
Lets now look at the smaller, less well known digital currencies that I believe have the strongest potential for meteoric rises in the near future. I have had holdings in coins like these go from a few hundred pounds to thousands of pounds in value. These smaller altcoins should make up a small percentage of your overall portfolio.
With these coins, the mentality should be simple. You need to buy holdings in these coins almost as a ‘punt’. What I mean is, you should expect some of them to not move in value at all. In fact, a couple may even fall and disappear. In contrast, we only need ONE of the coins we choose to explode in value and we will make a handsome profit.
MaidSafeCoin (MAID) – Exc. HitBTC
https://coincentral.com/what-is-maidsafecoin-beginners-guide/ “This is a coin with a very clear plan and the introduction on the link above sets it out… MaidSafeCoin serves as a token for Safecoin, a decentralized currency for a decentralized network. Safecoin will serve as the currency for the SAFE network, a network made up of the extra hard disk space, processing power, and data connectivity of its users. Think of it as the sharing economy but for your digital resources. MaidSafe is the company developing the SAFE network to save the world from the perils of centralized data storage. In the current paradigm, the best case is corporations use your data to better target you to their advertisers. The worst case is they leak your private data to the public, as Yahoo, Equifax, Target, and many other companies have already done.” Governments and corporations are very keen on keeping their data secret but do not like it when we want the same. This sort of hypocrisy is why digital coins are necessary and it is what also makes them important. The history of the world is to an extent the history of the less powerful breaking away from the control of the powerful and right now we are at a pivotal point.
Ethos (ETHOS) – Exc. Binance+
https://coincentral.com/what-is-ethos/ “Ethos was formerly known as Bitquence since its debut in 2017. They later changed the name to Ethos in November. Under the new name, interest in the project grew steadily after the ICO. Ethos’s popularity exploded in the first week of 2018, as evidenced by the price of ETHOS coin. The Ethos platform and underlying technology are still under development. A public version of the platform has not yet been released. However, Ethos had a limited alpha in 2017, and it will enter beta and production in 2018. The ultimate goal of the platform is to be a complete multi-asset wealth management solution. As such, the founders have focused on user experience, people-centric features, and regulatory compliance. In this article, we’ll look at what Ethos has in store and why the project is generating such excitement.” One of the BIG issues with cryptos is security and this has been a real issue for me over the last 20 months or so – Ethos plans to solve this and there are other coins/exchanges with similar plans. However Ethos are one of the most advanced projects also planning to offer an automated diversification process. Regulation is welcome to the digital currency world, by me and others, as it will be one more step towards greater acceptance (and thus higher prices) BUT over-regulation, which is a fairly typical trend is NOT welcome, at least not by me. However, that is a trend that is much harder to stop. The new ETHOS wallet is already available to download and I will be looking at this shortly.
Stratis (STRAT) – Exc Bitfinex ++
https://coincentral.com/stratis-beginner-guide/ “Stratis is a blockchain development platform for enterprise businesses to easily create applications on specific, private blockchains. The Stratis API framework enables organizations to speed up their blockchain creation and simplify the development process involved with it. Although the company is primarily targeting financial institutions, any business interested in incorporating blockchain can benefit from the project. They’ve even recently partnered with a seafood company, Earth Twine. Stratis takes a more hands-on approach to implementation than other blockchain projects. Beyond building the platform, the team offers consulting services to businesses who may need guidance in working with their technology. They also work with clients in building out and hosting decentralized applications so they can fully understand their smart contract needs.” Stratis is a highly regarded business development coin. One issue with this is that the coin itself has no particular purpose but the team is innovative and expected to overcome this issue.
Power Ledger (POWR) – Exc Bitfinex ++
https://coincentral.com/power-ledger-beginner-guide/ “Imagine a world without reliance on big utility companies or foreign resources for all the energy needed to run your life. That world may become a reality in the near future in thanks to Power Ledger’s decentralized applications. Power Ledger, a blockchain-based platform, plans to completely revolutionalise the worldwide energy industry by enabling local areas the ability to sell and distribute solar power to its neighbors without the need of a middleman. In a 2015 report, Deutsche Bank stated that at least thirty countries worldwide have already reached grid parity: the state where the price of solar-generated electricity was equal or less than the cost of local retail electricity. Combining innovations in both solar power and blockchain development, Power Ledger offers an unmatchable energy solution that is cleaner, cheaper, and more sustainable than traditional energy alternatives.” I think the comments above say it all – another innovative, and potentially disruptive, digital coin which may change the world we live in for the better.
Cardano (ADA) – Exc Bitfinex ++
https://coincentral.com/cardano-beginner-guide/ “Cardano is being developed in two layers that separate the ledger of account values from the reason why values are moved from one account to the other. This separation enables the smart contracts that are written on the platform to be more flexible. Businesses can take advantage of this separation to tailor the design, privacy, and execution” Another business based application based on smart contracts which are basically contracts which enforce themselves.
Bitshares (BTS) – Exc. BInance+
https://www.cryptocompare.com/coins/bts/overview/BTC “BitShares (BTS) was first introduced in a White Paper titled “A Peer-to-Peer Polymorphic Digital Asset Exchange” by Daniel Larimer, Charles Hoskinson, and Stan Larimer. It is a brand of open-source software based on the as blockchain technology as used by Bitcoin. Unlike bitcoins, which do not produce any income for their owners, BitShare can be used to launch Decentralized Autonomous Companies (DACs) which issue shares, produce profits and distribute profits to shareholders. As such, BitShares is about making profitable companies that people want to own shares in, thus creating return for the shareholders. The first DAC launched by this proces was called BitSharesX, a decentralized asset exchange based in Hong Kong. BitShares was originally launched under the name of ProtoShares (PTS); it was later renamed to BitShares (BTS) and “reloaded” in November 2014 by merging several products into BitShares (BTS).” This one is a simpler concept, a de-centralised exchange, which runs itself free from human interference. The concept of de-centralisation is central to the digital currency world to take us away from over-zealous government regulation.
NEM (XEM) – Exc. Binance
https://coincentral.com/what-is-nem/ New Economy Movement (NEM) is an enterprise-grade solution to power the impending blockchain economy. Originally intended to be a fork of NXT, the community decided to go with a completely new codebase with an alpha version released June 25, 2014, and the first stable release March 31, 2015. The platform is currently being rewritten in C++ and will be released as the “Catapult” update sometime in early 2018. The Smart Asset System: The NEM blockchain powers what they call the Smart Asset System. This system is intended to be an open, customizable blockchain solution for any number of use cases built on top of simple, powerful API calls. The blockchain is secured and transactions are processed by a global network of nodes running the NEM core software, and the network is used as an API Gateway server. This means developers looking to build blockchain powered apps don’t need to run any special NEM software as all of the NEM functionality is available by accessing API calls.This allows for a lot of flexibility when it comes to system design and how various apps are making use of the NEM network. Apps can access the NEM API directly, access a separate server in addition to making NEM requests, or existing servers can be adapted to make use of NEM in the background. Coins like NEM are less sexy and also harder to grasp but will have a key roll in the future of crypto as it develops (just as the internet did 20 odd years ago).
Quantstamp (QSP) – Exc. Binance +
https://coincentral.com/quantstamp-beginner-guide/ Quantstamp is a security-auditing protocol for smart contracts. As a dapps platform, Ethereum has proven its security time and again. However, dapps and smart contracts on top of Ethereum may still have bugs in which malicious players can cause havoc on the network. The two most notable examples of these being the $55 million DAO hack and the $30 million Parity wallet bug. These issues not only affect the people who’ve had their funds stolen, but they also diminish the credibility of the entire ecosystem. Writing smart contracts is already a tough job. Like any other computer programming, writing them without any bugs is near impossible. To add fuel to the fire, the rate at which smart contracts are being written (estimated 10 million by the end of the year) is outpacing the resources needed to audit them. Even with robust security auditing, a small bug could slip through the cracks causing catastrophe down the road. This is potentially a key coin providing a verification process for smart contracts and it has been given a solid welcome.
Mainframe (MFT) – Exc. Binance+
https://coincentral.com/mainframe-mick-hagen-interview-part-1/ How exactly does Mainframe work? How do you guarantee censorship resistance and the privacy surrounding data and messages? We’re building the infrastructure. We also built an app called Onyx, the messaging app that people can use to communicate. But, Mainframe is the infrastructure. It’s the decentralized communication network – a network of nodes. You’ve got people all over the world who are running Mainframe nodes, and essentially those nodes relay messages across the network. That’s why the Mainframe token is essential. They’re paid to relay messages, to route messages across the network, to deliver messages, to store messages. And, everything’s fully encrypted. That’s table stakes at this point for messaging networks. We also have this functionality called dark routing which creates an added layer of privacy for people who want it. It’s optional depending on the message. If you’re having a conversation that’s very private, you can turn on dark routing. Mainframe is all about secure messaging and they plan to offer a decentralized platform so that no one can interfere, read your messages or censor what you want to say – so pretty key stuff!
Nano Exc. Binance +
https://coincentral.com/raiblocks-beginners-guide/ Nano hopes to become what Bitcoin, at times, struggles to be: an efficient, viable alternative to fiat currencies. In Nano’s white paper (each crypto has a white paper setting out its stall) the digital currency’s development team raises concerns over the practicality of Bitcoin as a common currency. The concerns are as follows: Scalability issues have users facing high transaction fees, with a median fee of $10.38 Bitcoin’s high computational latency makes for an average transaction time of 164 minutes. Bitcoin’s proof of work consensus uses an estimated 27.28TWh annually, an average of 260KWh per transaction. Using its own block-lattice structure, Nano wants to succeed where Bitcoin has fallen short. The cryptocurrency promises to deliver zero-fee transactions in real time without the same work-intensive overhead and energy consumption as Bitcoin.
Bitcoin has shifted to become a store of a value, the digital currency equivalent of gold, and this was perhaps inevitable for the first digital currency. Nano can send transactions at lightning sped and at zero cost.
One point you will note above is that there are various digital currencies in each “sector” (for example “payments” and here we find Bitcoin Cash, Z-cash, Litecoin, Monero and Nano.) Now, not all of the digital currencies in this space are going to succeed, albeit I believe that my choices have better prospects than the average, but it would be a mistake to think only one will in each sector – look at the Motor Industry and Banking as examples where there are numerous winners.
Another point is that you might think a new coin like Nano has an advantage as it is based on more innovative technology. This is true to an extent but the more established coins, like Bitcoin itself, have development teams and can “catch up” plus they have much bigger bases of established fans. As I write (in July 2018) price remains depressed but this will not remain the case for long. In fact, I think we have a fantastic opportunity at this time. Bitcoin has fallen 70%+ from the $20k high seen at the end of 2017 but some of the altcoins have seen even bigger falls. Similarly when the rally comes the altcoins are liable to benefit by much larger percentages than Bitcoin – but I suggest a portfolio including Bitcoin as well.
There was a key event on August 10th that got postponed, when the SEC in the US will give their decision on a major Bitcoin Exchange Traded Fund (ETF) – The creation of such funds have often marked key lows in other commodities, i.e. Gold and Uranium. I’m waiting closely for a ruling on this around the time you will all be starting this course. In the next module we will bring all that you have learned so far together and show you one of the most important skills in digital currencies trading…. which is security. Just like keeping your money safely locked up in a bank or in your pocket in a wallet I’ll show you how to keep your coins safe from hackers and unscrupulous brokers.
Once we have covered safety we will then bring this all together and begin learning the crucial skill of reading the market and knowing when to buy and when to sell with absolute confidence. Now that we have explored the big main coins and the smaller altcoins in which I’m particularly interested,its time to show you a very useful website to add to the favourites on your browser.
This website is a hugely useful resource to get an in depth listing of which brokers sell which coins. It also is a great centralised to find out about more coins and even shop around with the best broker sometimes to get the absolute best price when buying. You’ll hear me mention this site a lot in my webinars and posts. Don’t worry about the content too much for now (there is a lot there !!!), for now you know what I’m talking about and where to find the site.
How to Avoid Cryptocurrency Scams
There are a number of areas where I have seen people scammed with Cryptocurrency and armed with the knowledge here you will be able to avoid them easily.
Here is a list of exchanges to avoid
01crypto, Btc-cap, Capital-coins, Coinquick, Cryptavenir, Crypto-banque, Crypto-infos, Cryptos.solutions, Cryptos-currency, Ether-invest, Eurocryptopro, Finance-mag, Gme-crypto, Gmtcrypto, Good-crypto, Mycrypto24, Nettocrypto, Patrimoinecrypto, and Ydconsultant.
Only download or buy software for Digital Currency Wallets from reputable places.
Pyramid and Ponzi Cryptocurrency Schemes
Be careful of scam sites that clone a reputable website with a very similar name and near identical layout.
The BEst Cryptocurrency profit making strategies
Buying & HODLing
This is the principle of most Investors. Buy and Hold on until you get a profit you are happy with. The key here is to buy at the lowest price possible and sell at the highest price. Also Ill explain later in this blog how to get FREE coins and also invest in coins that pay a second passive income as well.
What Cryptocurrencies pay Dividends?
You are probably already aware that when you hold shares in a public company they often pay a ‘dividend’ to the shareholders each year as a representation of the profits that the company has made.
Well its great to see that while you are buying and holding on to a cryptocurrency there are some that will also pay you an additional passive income while you also see the underlying increase in the value of the coin as well.
Each coin has different rules , and you shouldn’t confuse this with ‘mining’ which is different.
So What are masternodes?
Masternode is simply a cryptocurrency full node or computer wallet that keeps the full copy of the blockchain in real-time ,
Masternodes are very useful for crypto investors because of running a masternode you are incentivized. Consider it just like earning a monthly or weekly interest on your crypto holdings.
Different cryptocurrencies have different incentive models through which an MN operator can earn a decently monthly or weekly income. I call it smart passive income.
If you are invested in a cryptocurrency that allows you to run a masternode, you should definitely explore that option of earning.
So lets take a look at some great Coins for some passive income .
Neo Dividends – GAS
Owning Neo means you also get paid a crypto-token called GAS. The GAS can only be paid into certain digital wallets so make sure you check their rules and have the correct wallet. These tokens are worth about 5.5% return per year on top of the price change of Neo itself.
With Kucoin you get a daily variable bonus . You will need to have a MyEtherWallet or Any ERC-20 Wallet
Other coins that pays dividends
Some of the other coins that pay dividends include Bridgecoin, Neblio, Komodo, PIVX, NAVcoin#4. Run Masternodes
Day Trading Cryptocurrencies
This is a HUGE topic in itself and you will need guidance from a day trading expert. Remember the case study from John Piper in this blog ? Well John Piper has been investing and trading for decades and has written countless books. He runs a superb course on trading Cryptocurrencies from the site https://www.yahurasystem.co.uk.
What is a Cryptocurrency Airdrop ?
Free Coins ? FREE ?! Airdrops are a superb way for a cryptocurrency investor to make some gains with no outlay .
An airdrop is a distribution of a cryptocurrency token or coin, usually for free, to a large number of wallet addresses. Airdrops are primarily implemented as a way of gaining attention and new followers, resulting in a larger user-base and a wider disbursement of coins.
There are some more services and websites through which you can get regular updates about airdrops. However, understand the fact that not all airdrops are worth participating in and can be sometimes fraudulent too.
Two great places for alerts are at
What is a Cryptocurrency ICO ?
This is the launch of a new coin. An initial coin offering (ICO) or initial currency offering is a type of funding using cryptocurrencies. … In an ICO, a quantity of cryptocurrency is sold in the form of “tokens” (“coins”) to speculators or investors, in exchange for legal tender or othercryptocurrencies such as Bitcoin or Ethereum.
The advantage of an ICO is you have the potential to get them at a low price, but you need to be careful about scams and make sure by checking in multiple places that the offering is genuine.
Is it worth Cryptocurrency mining?
You’ll remember from earlier in this blog I explained that cryptocurrnecy mining was allowing your computer or a special computer you have bought to handle some of the cryptocurrency transactions and get paid a small amount of coin as a thankyou.
you may have seen the huge warehouses full of computers set up in countries like Iceland to mine coins, but due to the costs of electricity and the hardware its almost impossible for you to make money at home from your laptop doing this. With a recent drop in value of some of the big coins it also means that mining just isn’t worth it at the moment.
Summary of Cryptocurrency Investing and Trading
The Cryptocurrency market is still very much ‘The Wild West’ but with big risks comes the potential for HUGE rewards. This guide has given you everything you need to get started , open accounts, maintain a secure wallet, pick quality coins and even get a second income and free coins too.