Cryptocurrency Investing Bible: The Ultimate Guide About Blockchain, Mining, Trading, ICO, Ethereum Platform, Exchanges, Top Cryptocurrencies for Investing and Perfect Strategies to Make Money 2018

Summary:

• Cryptocurrency Investing Bible: The Ultimate Guide About Blockchain, Mining, Trading, ICO, Ethereum Platform, Exchanges, Top Cryptocurrencies for Investing and Perfect Strategies to Make Money by Alan T. Norman is a comprehensive guide to understanding the world of cryptocurrency investing. It provides readers with an in-depth look at the technology behind cryptocurrencies such as blockchain and mining; how to trade them on exchanges; what Initial Coin Offerings (ICOs) are; how to use the Ethereum platform; which exchanges offer the best services for trading cryptocurrencies; which top coins are worth investing in and strategies that can be used to make money from cryptocurrency investments.

  The book begins with an introduction into what cryptocurrency is and why it has become so popular over recent years. It then goes on to explain blockchain technology – its structure and function – before discussing mining processes. This section also covers topics such as proof-of-work algorithms and consensus mechanisms.

  The next part of the book looks at trading cryptocurrencies on exchanges. Here readers will learn about different types of orders they can place when buying or selling digital assets as well as other features offered by various platforms including margin trading options.

  Following this is a chapter dedicated entirely to Initial Coin Offerings (ICOs). Readers will gain insight into what these offerings involve along with tips for evaluating potential projects before investing their funds.

  The book then moves onto exploring Ethereum’s smart contract platform before providing information about some of the most popular crypto exchanges available today. This includes details about fees charged by each exchange along with security measures implemented by them.

  In addition, there is a chapter devoted solely towards helping investors decide which top coins are worth investing in based on factors such as market capitalization size or development team strength among others. Finally, readers will find several strategies outlined that could help them maximize their profits from cryptocurrency investments.

Main ideas:

• #1.     Understand the Basics of Cryptocurrency: Cryptocurrency is a digital asset that uses cryptography to secure and verify transactions. It is decentralized, meaning it is not controlled by any government or central bank. Understanding the basics of cryptocurrency is essential for successful investing.
  
  

  Cryptocurrency is a digital asset that uses cryptography to secure and verify transactions. It is decentralized, meaning it is not controlled by any government or central bank. Understanding the basics of cryptocurrency is essential for successful investing.

  The first step in understanding cryptocurrency is to understand how it works. Cryptocurrencies use blockchain technology, which allows users to securely transfer funds without the need for a third-party intermediary such as a bank or credit card company. Transactions are recorded on an immutable public ledger called the blockchain, which can be viewed by anyone with access to the internet.

  In addition to understanding how cryptocurrencies work, investors should also familiarize themselves with different types of coins and tokens available on the market. Coins are typically used as payment methods while tokens represent ownership in projects or companies built on top of blockchains like Ethereum.

  Investors should also research different exchanges where they can buy and sell cryptocurrencies. Exchanges vary in terms of fees, security measures taken against hackers, customer service levels and more so it’s important to do your due diligence before selecting one.

  Finally, investors should stay up-to-date with news related to cryptocurrency markets including new regulations from governments around the world that could affect prices as well as upcoming Initial Coin Offerings (ICOs) that could offer potential investment opportunities.

• #2.     Learn About Blockchain Technology: Blockchain is the technology that powers cryptocurrency. It is a distributed ledger system that records and stores data in a secure and immutable way. Understanding how blockchain works is essential for successful investing.
  
  

  Blockchain technology is a revolutionary way of storing and sharing data. It is a distributed ledger system that records and stores data in a secure and immutable way. This means that the data stored on the blockchain cannot be changed or tampered with, making it an ideal platform for financial transactions. Blockchain also allows users to transfer value without having to rely on third-party intermediaries such as banks or other financial institutions.

  The most popular application of blockchain technology is cryptocurrency, which uses cryptography to securely store digital assets like Bitcoin, Ethereum, Litecoin, etc. Cryptocurrency transactions are recorded on the blockchain and can be tracked by anyone who has access to the network. This makes it possible for people all over the world to send money quickly and securely without relying on traditional banking systems.

  In addition to cryptocurrency applications, blockchain technology can also be used for many other purposes such as smart contracts, supply chain management, identity verification services, voting systems and more. By understanding how this innovative technology works you will have a better chance at successful investing in cryptocurrencies.

• #3.     Understand Mining: Mining is the process of verifying and adding transactions to the blockchain. It is done by miners who are rewarded with cryptocurrency for their work. Understanding mining is essential for successful investing.
  
  

  Mining is an essential part of the cryptocurrency ecosystem. It is a process that verifies and adds transactions to the blockchain, which is a public ledger of all cryptocurrency transactions. Miners are rewarded with cryptocurrency for their work in verifying these transactions.

  Understanding mining is key to successful investing in cryptocurrencies. Mining requires specialized hardware and software, as well as knowledge about how the system works. Knowing how miners are rewarded can help investors make informed decisions when it comes to buying or selling digital assets.

  In addition, understanding mining can also provide insight into other aspects of the crypto market such as network security and scalability issues. By understanding how miners operate, investors can better assess potential risks associated with different projects.

• #4.     Understand Trading: Trading is the process of buying and selling cryptocurrency on exchanges. It is important to understand the different types of trading strategies and how to use them to maximize profits.
  
  

  Trading cryptocurrency is a complex process that requires knowledge of the different types of trading strategies and how to use them effectively. There are several different types of trading strategies, such as day trading, swing trading, scalping, and position trading. Each strategy has its own advantages and disadvantages depending on the market conditions. Day traders look for short-term opportunities in the markets while swing traders focus on longer-term trends.

  Scalpers attempt to make small profits from many trades over a short period of time while position traders take advantage of long-term price movements by holding positions for extended periods. It is important to understand which type of strategy works best in certain market conditions so that you can maximize your profits when investing in cryptocurrencies.

  In addition to understanding the various types of strategies available, it is also important to understand risk management techniques such as stop losses and limit orders. Stop losses help protect against large losses if prices move against you while limit orders allow you to set maximum purchase or sale prices before executing a trade.

  Finally, it is essential to stay up-to-date with news related to cryptocurrencies so that you can anticipate changes in price movements before they occur. By staying informed about developments within the industry, investors can better prepare themselves for any potential risks associated with their investments.

• #5.     Understand ICOs: ICOs are Initial Coin Offerings, which are a way for companies to raise funds by selling tokens. It is important to understand the risks associated with ICOs and how to evaluate them before investing.
  
  

  ICOs, or Initial Coin Offerings, are a way for companies to raise funds by selling tokens. They have become increasingly popular in recent years as an alternative form of fundraising for startups and other businesses. It is important to understand the risks associated with ICOs before investing in them.

  When evaluating an ICO, it is important to consider the team behind it, their track record and experience in the industry, as well as any regulatory compliance they may need to adhere to. Additionally, investors should look into the project’s roadmap and white paper which outlines its goals and objectives.

  It is also essential that potential investors research the token economics of an ICO; this includes understanding how many tokens will be issued during the sale period and what percentage of those tokens will be allocated for public sale versus private sale or reserved for future use. Furthermore, investors should pay attention to any bonuses offered during pre-sale periods.

  Finally, it is important that potential investors do their own due diligence on any given ICO before investing in order to ensure that they are making informed decisions about where their money goes.

• #6.     Understand Ethereum Platform: Ethereum is a blockchain-based platform that enables developers to create decentralized applications. Understanding the Ethereum platform is essential for successful investing.
  
  

  Ethereum is a blockchain-based platform that enables developers to create decentralized applications. It is an open source, public, blockchain-based distributed computing platform featuring smart contract functionality. Ethereum provides a decentralized virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes.

  The Ethereum platform allows users to build and deploy their own decentralized applications on the blockchain. These apps are called dApps or Decentralized Applications and they run on a peer-to-peer network of computers instead of relying on centralized servers like traditional web applications do. This means that no single entity has control over them and they are resistant to censorship.

  Understanding the Ethereum platform is essential for successful investing in cryptocurrencies as it provides investors with insight into how different projects work within the ecosystem. Investors should understand how transactions are processed, what types of tokens exist within the system, and how these tokens interact with each other in order to make informed decisions about their investments.

• #7.     Understand Exchanges: Exchanges are platforms where users can buy and sell cryptocurrency. It is important to understand the different types of exchanges and how to use them to maximize profits.
  
  

  Exchanges are an integral part of the cryptocurrency market, allowing users to buy and sell digital assets. There are a variety of different types of exchanges available, each with their own advantages and disadvantages. It is important for investors to understand these differences in order to make informed decisions when trading cryptocurrencies.

  The most common type of exchange is a centralized exchange (CEX). These platforms allow users to deposit funds into their accounts and then trade them on the platform’s order books. CEXs offer high liquidity, low fees, and fast execution times but come with certain risks such as counterparty risk or potential hacks.

  Decentralized exchanges (DEX) operate differently than CEXs by not requiring users to deposit funds into an account before trading. Instead, trades occur directly between two parties without any intermediary involved. DEXs provide greater security since there is no central point of failure but can be more difficult for novice traders due to their lack of user-friendly interfaces.

  Finally, peer-to-peer (P2P) exchanges allow buyers and sellers to connect directly without any third party involvement. This allows for faster transactions at lower costs but comes with its own set of risks such as scams or fraudsters taking advantage of unsuspecting traders.

  It is essential that investors understand the different types of exchanges available so they can choose one that best suits their needs. By doing so they will be able maximize profits while minimizing risk when trading cryptocurrencies.

• #8.     Understand Top Cryptocurrencies: There are many different types of cryptocurrencies, and it is important to understand the top ones and how they differ from each other.
  
  

  The top cryptocurrencies are Bitcoin, Ethereum, Ripple, Litecoin and Dash. Each of these has its own unique features that make it stand out from the rest. Bitcoin is the original cryptocurrency and was created in 2009 as a peer-to-peer electronic cash system. It is decentralized and not controlled by any government or central bank. Ethereum is an open source platform for creating smart contracts and decentralized applications (dApps). It also allows users to create their own tokens on the blockchain.

  Ripple is a real-time gross settlement system (RTGS) designed to facilitate fast international payments with low transaction fees. Litecoin was created as an alternative to Bitcoin with faster transaction times and lower fees than its predecessor. Dash is a privacy focused digital currency that offers instant transactions with near zero cost payments.

  Each of these cryptocurrencies have different use cases which makes them attractive investments for different types of investors. For example, those looking for quick transactions may prefer Ripple or Litecoin while those interested in privacy may opt for Dash instead of Bitcoin or Ethereum.

  It’s important to understand how each cryptocurrency works before investing in them so you can make informed decisions about your investments.

• #9.     Understand Perfect Strategies to Make Money: There are many different strategies for making money with cryptocurrency, and it is important to understand the best ones and how to use them to maximize profits.
  
  

  One of the most important strategies for making money with cryptocurrency is to diversify your investments. This means investing in different types of cryptocurrencies, such as Bitcoin, Ethereum, Litecoin and others. By diversifying your portfolio you can reduce risk and increase potential profits. Additionally, it is important to research each individual currency before investing in order to understand its unique characteristics and how they may affect its value.

  Another strategy for making money with cryptocurrency is trading on exchanges. Exchanges allow users to buy and sell digital currencies at a set price determined by market demand. Trading on exchanges requires knowledge of technical analysis tools such as charting patterns and indicators which can help traders identify profitable opportunities when buying or selling coins.

  Finally, another way to make money with cryptocurrency is through Initial Coin Offerings (ICOs). ICOs are a form of crowdfunding where companies offer tokens that represent ownership in their project or company. Investors who purchase these tokens receive rewards based on the success of the project or company’s performance over time.

• #10.     Understand Security: Security is an important factor when investing in cryptocurrency. It is important to understand the different types of security measures and how to use them to protect your investments.
  
  

  Security is an essential component of investing in cryptocurrency. It is important to understand the different types of security measures available and how to use them effectively to protect your investments. Security measures can include two-factor authentication, cold storage wallets, hardware wallets, multi-signature transactions, and more. Two-factor authentication adds an extra layer of protection by requiring a second form of identification such as a code sent via text message or email before allowing access to accounts or funds.

  Cold storage wallets are offline devices that store private keys away from any online connection. This makes it much harder for hackers to gain access since they would need physical access to the device itself. Hardware wallets are similar but provide additional features like PIN codes and recovery phrases which make them even more secure than cold storage solutions.

  Multi-signature transactions require multiple signatures from different users before funds can be released from an account. This ensures that no single user has control over all the funds in an account and provides another layer of security against malicious actors.

  By understanding these various security measures and implementing them correctly, investors can ensure their cryptocurrency investments remain safe and secure.

• #11.     Understand Tax Implications: Investing in cryptocurrency can have tax implications, and it is important to understand the different types of taxes and how to minimize them.
  
  

  Investing in cryptocurrency can have a range of tax implications, and it is important to understand the different types of taxes that may apply. For example, capital gains taxes are applicable when you sell or trade your cryptocurrency for another asset such as fiat currency. Additionally, income taxes may be due if you receive payments in cryptocurrency from other parties. It is also important to consider any local or state-level taxation laws that could affect your investments.

  In order to minimize the amount of tax liability associated with investing in cryptocurrencies, it is essential to keep accurate records and track all transactions carefully. This includes keeping detailed records of purchase prices and sale prices for each transaction as well as tracking any fees incurred during trading activities. Additionally, investors should consult with a qualified accountant or financial advisor who specializes in cryptocurrency taxation before making any major investment decisions.

• #12.     Understand Regulations: Regulations vary from country to country, and it is important to understand the different types of regulations and how they affect cryptocurrency investing.
  
  

  Understanding regulations is an important part of cryptocurrency investing. Regulations vary from country to country, and it is essential for investors to understand the different types of regulations that exist in order to make informed decisions about their investments. For example, some countries may have laws that restrict or prohibit certain types of cryptocurrency transactions, while others may impose taxes on profits made from trading cryptocurrencies.

  It is also important to be aware of any changes in regulation as these can affect the value of a particular currency. Investors should keep up-to-date with news related to regulatory developments so they can adjust their strategies accordingly. Additionally, understanding how different exchanges operate within each jurisdiction will help investors determine which exchange best suits their needs.

  Finally, it is important for investors to remember that even though there are many regulations governing cryptocurrency investing around the world, this does not mean that all investments are risk free. As with any investment opportunity, there are always risks involved and it is up to the investor to do their due diligence before making any decisions.

• #13.     Understand Market Analysis: Market analysis is the process of analyzing the cryptocurrency market to identify trends and opportunities. Understanding market analysis is essential for successful investing.
  
  

  Market analysis is a critical component of successful investing in the cryptocurrency market. It involves studying the current trends and opportunities in order to identify potential investments that could yield high returns. Market analysis requires an understanding of both technical and fundamental factors, such as price movements, trading volume, news events, economic indicators, and more. By analyzing these factors together, investors can gain insight into how different cryptocurrencies are performing relative to each other.

  In addition to identifying potential investment opportunities, market analysis also helps investors understand when it may be time to exit their positions or take profits from existing investments. This type of analysis can help traders make informed decisions about when they should buy or sell certain coins for maximum profit.

  Finally, market analysis provides valuable insights into the overall health of the cryptocurrency markets by helping investors spot emerging trends before they become mainstream. By staying ahead of the curve with this type of research and data-driven decision making process, savvy investors can capitalize on new developments quickly while minimizing risk.

• #14.     Understand Technical Analysis: Technical analysis is the process of analyzing the price and volume of cryptocurrency to identify trends and opportunities. Understanding technical analysis is essential for successful investing.
  
  

  Technical analysis is a powerful tool for cryptocurrency investors. It involves studying the price and volume of cryptocurrencies to identify trends and opportunities in the market. By understanding technical analysis, investors can make informed decisions about when to buy or sell their investments.

  The process of technical analysis begins with identifying key support and resistance levels on a chart. Support levels are areas where buyers tend to enter the market, while resistance levels are areas where sellers tend to enter the market. Once these key levels have been identified, traders can then look for patterns such as head-and-shoulders formations or double tops/bottoms that may indicate potential buying or selling opportunities.

  In addition to looking at price action, traders also use indicators such as moving averages (MA) and relative strength index (RSI) to help them identify trends in the markets. Moving averages provide an indication of whether prices are trending up or down over time by smoothing out short-term fluctuations in price data. The RSI helps traders determine if an asset is overbought or oversold by comparing its recent gains against its recent losses.

  By combining all these tools together, investors can gain valuable insights into how different cryptocurrencies behave in different market conditions which will enable them to make more informed trading decisions.

• #15.     Understand Fundamental Analysis: Fundamental analysis is the process of analyzing the underlying fundamentals of a cryptocurrency to identify trends and opportunities. Understanding fundamental analysis is essential for successful investing.
  
  

  Fundamental analysis is a key component of successful investing in cryptocurrency. It involves analyzing the underlying fundamentals of a cryptocurrency to identify trends and opportunities. This includes looking at factors such as the technology behind the coin, its market capitalization, trading volume, liquidity, and other economic indicators. By understanding these fundamental aspects of a coin’s performance, investors can make informed decisions about when to buy or sell their holdings.

  In addition to evaluating the technical aspects of a coin’s performance, fundamental analysis also looks at how news events may affect its price movements. For example, if there is an announcement that could potentially have an impact on the value of a particular currency – such as new regulations or partnerships – then this should be taken into account when making investment decisions.

  Finally, it is important for investors to understand how different coins interact with each other in order to gain insight into potential future price movements. By studying correlations between different cryptocurrencies and tracking changes over time, investors can better anticipate which coins are likely to increase or decrease in value.

• #16.     Understand Risk Management: Risk management is the process of managing the risks associated with investing in cryptocurrency. It is important to understand the different types of risk management strategies and how to use them to minimize losses.
  
  

  Risk management is an essential part of investing in cryptocurrency. It involves understanding the different types of risks associated with investing and developing strategies to minimize losses. There are several risk management strategies that can be used, such as diversification, hedging, stop-loss orders, and portfolio rebalancing.

  Diversification is a strategy where investors spread their investments across multiple assets or currencies to reduce the overall risk exposure. Hedging is another strategy which involves taking offsetting positions in two different markets to protect against potential losses from one market. Stop-loss orders are also important for limiting losses on individual trades by setting predetermined levels at which traders will exit a position if it moves against them.

  Portfolio rebalancing is another important aspect of risk management. This involves periodically adjusting the composition of your portfolio so that it remains aligned with your investment goals and objectives. Rebalancing helps ensure that you don’t become too heavily exposed to any particular asset or currency.

  By understanding these various risk management strategies and how they can be applied when investing in cryptocurrency, investors can better manage their risks while still achieving their desired returns.

• #17.     Understand Investment Strategies: Investment strategies are the different ways to invest in cryptocurrency. It is important to understand the different types of strategies and how to use them to maximize profits.
  
  

  Investment strategies are the different ways to invest in cryptocurrency. There are a variety of strategies available, each with its own advantages and disadvantages. Some of the most popular investment strategies include buying and holding, trading, arbitrage, margin trading, and investing in Initial Coin Offerings (ICOs).

  Buying and holding is one of the simplest investment strategies for cryptocurrency investors. This strategy involves purchasing coins at their current market price and then holding them until they appreciate in value or can be sold for a profit. It is important to remember that this strategy requires patience as it may take some time before an investor sees any returns.

  Trading is another popular investment strategy used by many crypto investors. This involves actively buying and selling cryptocurrencies on exchanges based on market conditions such as supply/demand dynamics or news events. Traders must have a good understanding of technical analysis tools such as chart patterns, indicators, support/resistance levels etc., in order to make informed decisions about when to buy or sell.

  Arbitrage is another common investment strategy which involves taking advantage of price discrepancies between different exchanges or markets by simultaneously buying low on one exchange while selling high on another exchange. This allows traders to capitalize on small differences in prices across multiple platforms.

  Margin trading allows traders to borrow funds from brokers so that they can increase their exposure without having to put up additional capital themselves. Margin trading carries higher risks than other types of investments due to leverage but also offers greater potential rewards if done correctly.

• #18.     Understand Diversification: Diversification is the process of spreading investments across different types of cryptocurrencies to reduce risk. Understanding diversification is essential for successful investing.
  
  

  Diversification is an important concept for any investor to understand. It involves spreading investments across different types of cryptocurrencies in order to reduce risk and maximize returns. By diversifying, investors can protect themselves from the volatility of individual coins or tokens, as well as benefit from the potential upside of multiple assets.

  When it comes to cryptocurrency investing, diversification means having a portfolio that includes a variety of coins and tokens with different characteristics. This could include both large-cap and small-cap cryptos, those with high liquidity and low liquidity, those with strong fundamentals and weak fundamentals, etc. The goal is to spread out your investments so that you are not overly exposed to any one asset.

  It’s also important to remember that diversification does not guarantee success; it simply reduces risk by allowing investors to spread their money across multiple assets. As such, it’s essential for investors to do their own research before investing in any particular coin or token.

• #19.     Understand Psychology of Investing: The psychology of investing is the study of how people make decisions when investing in cryptocurrency. Understanding the psychology of investing is essential for successful investing.
  
  

  The psychology of investing is an important factor to consider when investing in cryptocurrency. It involves understanding how people make decisions when it comes to their investments, and what factors influence those decisions. By understanding the psychology of investing, investors can better understand why certain investments may be more successful than others, and how they can use this knowledge to their advantage.

  Investors must also take into account the emotional aspects of investing. Fear and greed are two powerful emotions that can have a significant impact on investment decisions. Investors should strive to remain objective and rational when making investment decisions, rather than letting fear or greed dictate their actions.

  It is also important for investors to understand the risks associated with any given investment before committing funds. Risk management is essential for successful cryptocurrency trading as there are no guarantees that any particular asset will increase in value over time.

  Finally, investors should always remember that past performance does not guarantee future results. Cryptocurrency markets are highly volatile and unpredictable so it’s important for investors to stay informed about current market conditions in order to make sound investment choices.

• #20.     Understand the Future of Cryptocurrency: Cryptocurrency is a rapidly evolving technology, and it is important to understand the potential future of cryptocurrency and how it could affect investing.
  
  

  Cryptocurrency is a revolutionary technology that has the potential to revolutionize the way we transact and store value. As such, it is important for investors to understand the future of cryptocurrency and how it could affect their investments. The most likely scenario is that cryptocurrencies will become more widely accepted as a form of payment, with governments around the world recognizing them as legal tender. This would open up new opportunities for businesses to accept payments in digital currencies, which could lead to increased adoption and usage.

  In addition, blockchain technology – which underpins many cryptocurrencies – has numerous applications beyond just currency transactions. It can be used for smart contracts, data storage solutions, identity management systems and much more. As these technologies continue to develop over time, they may provide even greater utility than traditional financial services products.

  Finally, there are also regulatory considerations when investing in cryptocurrency markets. Governments around the world have taken different approaches towards regulating this space; some countries have embraced it while others have been more cautious or outright hostile towards its development. Investors should keep an eye on any changes in regulation that might impact their investments.