Cryptocurrency: Beginners Bible - How You Can Make Money Trading and Investing in Cryptocurrency like Bitcoin, Ethereum and altcoins 2017

Summary:

• Cryptocurrency: Beginners Bible - How You Can Make Money Trading and Investing in Cryptocurrency like Bitcoin, Ethereum and altcoins by Stephen Satoshi is a comprehensive guide to understanding the world of cryptocurrency. The book begins with an introduction to what cryptocurrency is, how it works, and why it has become so popular. It then goes on to explain the different types of cryptocurrencies available, such as Bitcoin, Ethereum, Litecoin, Ripple and more. It also covers topics such as blockchain technology and its implications for businesses; investing strategies; trading techniques; security measures; taxation issues; legal considerations; mining operations; ICOs (Initial Coin Offerings); wallets & exchanges; market analysis tools & indicators.

  The book provides readers with detailed information about each type of cryptocurrency including their history, features & benefits as well as potential risks associated with them. It also explains how to buy/sell cryptocurrencies using various methods such as peer-to-peer networks or online exchanges. Additionally, readers are provided with tips on how to store their digital assets securely while avoiding scams or frauds.

  In addition to providing practical advice on investing in cryptocurrencies safely and profitably, the author offers his own insights into the future of this rapidly evolving industry. He discusses possible scenarios that could affect prices in both positive and negative ways over time. Finally he concludes by offering some final thoughts on where he believes this new asset class may be headed.

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 anyone looking to invest in it.
  
  

  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 anyone looking to invest in it.

  The first step in understanding cryptocurrency is learning about blockchain technology, which serves as the foundation for most cryptocurrencies. Blockchain technology allows users to securely store and transfer data without relying on a third-party intermediary such as a bank or other financial institution. This makes transactions faster, more secure, and less expensive than traditional methods.

  Another important concept related to cryptocurrency is mining. Mining involves using powerful computers to solve complex mathematical problems in order to create new blocks on the blockchain network. Miners are rewarded with newly created coins when they successfully mine new blocks.

  Finally, investors should understand how different types of cryptocurrencies work before investing their money into them. Different types of cryptocurrencies have different features and use cases; some may be better suited for certain applications than others.

• #2.     Learn the Different Types of Cryptocurrency: There are many different types of cryptocurrency, including Bitcoin, Ethereum, and altcoins. Each type has its own unique features and benefits, so it is important to understand the differences between them before investing.
  
  

  Bitcoin is the most popular and widely used cryptocurrency. It was created in 2009 as a decentralized digital currency, meaning it does not rely on any central authority or government to issue or manage it. Bitcoin transactions are secured by cryptography and stored on a public ledger called the blockchain. Bitcoin can be used for payments, investments, trading, and more.

  Ethereum is another type of cryptocurrency that has gained popularity since its launch in 2015. Unlike Bitcoin, Ethereum is based on smart contracts which allow developers to create applications that run autonomously without needing third-party intervention. Ethereum also uses its own blockchain technology which allows users to build their own decentralized applications (dApps).

  Altcoins are alternative cryptocurrencies that have been developed after Bitcoins success. They often offer different features than those found with Bitcoin such as faster transaction times or lower fees. Examples of altcoins include Litecoin, Ripple, Dash and Monero.

  It is important to understand the differences between these types of cryptocurrencies before investing in them so you can make an informed decision about which one best suits your needs.

• #3.     Understand the Risks of Investing in Cryptocurrency: Investing in cryptocurrency is risky, as the market is highly volatile and prices can fluctuate quickly. It is important to understand the risks associated with investing in cryptocurrency before investing any money.
  
  

  Investing in cryptocurrency is a high-risk endeavor, and it’s important to understand the risks associated with investing before committing any money. Cryptocurrency markets are highly volatile, meaning that prices can fluctuate quickly and significantly. This means that investors could potentially lose their entire investment if they don’t pay close attention to market movements.

  In addition to price volatility, there are other risks associated with investing in cryptocurrency. For example, cryptocurrencies are not backed by governments or central banks like traditional currencies; instead, they rely on blockchain technology for security and trustworthiness. As such, there is no guarantee of safety when investing in cryptocurrency as the underlying technology may be vulnerable to hacking or manipulation.

  Finally, many countries have yet to regulate the use of cryptocurrencies which adds an additional layer of risk for investors. Without proper regulation from government authorities it can be difficult for investors to know what laws apply when trading or using digital assets.

• #4.     Research the Different Cryptocurrency Exchanges: There are many different cryptocurrency exchanges available, and it is important to research them before investing. Different exchanges offer different features and fees, so it is important to find the one that best suits your needs.
  
  

  Researching the different cryptocurrency exchanges is an important step for anyone looking to invest in digital currencies. Different exchanges offer different features and fees, so it is essential to find the one that best suits your needs. Some of the most popular exchanges include Coinbase, Binance, Kraken, Bitstamp and Gemini. Each exchange has its own advantages and disadvantages; some may have lower fees but fewer coins available for trading while others may have more coins available but higher fees.

  When researching a particular exchange, it’s important to look at factors such as security measures taken by the platform, customer support options offered by the company and any additional services they provide (such as margin trading or staking). Additionally, you should also consider how easy it is to use their interface – if you are new to cryptocurrencies then a user-friendly platform will be much easier for you than one with complex menus.

  Finally, make sure that you read reviews from other users before making your decision on which exchange to use. This can help give you an idea of what other people think about a particular platform and whether or not they would recommend using it.

• #5.     Understand the Different Cryptocurrency Wallets: Cryptocurrency wallets are used to store and manage cryptocurrency. Different wallets offer different features and security, so it is important to understand the different types of wallets before investing.
  
  

  Cryptocurrency wallets are essential for anyone looking to invest in cryptocurrencies. Different types of wallets offer different features and levels of security, so it is important to understand the differences between them before investing.

  The most common type of wallet is a hot wallet, which stores your cryptocurrency online and allows you to access it from any device with an internet connection. Hot wallets are convenient but less secure than other types of wallets because they can be vulnerable to hacking or theft if not properly secured.

  Cold storage wallets store your cryptocurrency offline on a physical device such as a USB drive or hardware wallet. Cold storage offers greater security since there is no risk of hackers accessing your funds, but it also requires more effort since you must manually transfer funds from the cold storage device when needed.

  Paper wallets are another option that allow users to print out their private keys and store them securely offline. Paper wallets provide excellent security against hackers, but they require extra care since paper can easily be damaged or lost.

  Finally, multi-signature (or multisig) wallets require multiple signatures in order for transactions to take place. This provides additional layers of security by requiring multiple people’s approval before any transaction can occur.

• #6.     Learn How to Buy and Sell Cryptocurrency: Buying and selling cryptocurrency is not as difficult as it may seem. It is important to understand the different methods of buying and selling cryptocurrency, such as using an exchange or peer-to-peer trading.
  
  

  When it comes to buying and selling cryptocurrency, there are a few different methods that can be used. The most popular method is using an exchange, which allows users to buy and sell cryptocurrencies with other users on the platform. This type of trading requires some knowledge of the market and how it works, as well as understanding the different types of orders available.

  Another option for buying and selling cryptocurrency is peer-to-peer trading. This involves connecting directly with another user who wants to buy or sell a certain amount of cryptocurrency at a specific price. It’s important to understand the risks associated with this type of trading before engaging in any transactions.

  Finally, there are also services that allow users to purchase cryptocurrencies directly from them without having to go through an exchange or use peer-to-peer trading. These services usually require more trust than exchanges since they act as custodians for your funds until you decide what you want to do with them.

• #7.     Understand the Different Cryptocurrency Mining Methods: Cryptocurrency mining is the process of verifying and adding transactions to the blockchain. Different mining methods offer different rewards, so it is important to understand the different methods before investing.
  
  

  Cryptocurrency mining is an essential part of the blockchain process. It involves verifying and adding transactions to the blockchain, which in turn rewards miners with cryptocurrency tokens. There are several different methods for mining cryptocurrencies, each offering its own set of advantages and disadvantages.

  Proof-of-Work (PoW) is one of the most popular methods used by miners today. This method requires miners to solve complex mathematical puzzles in order to add a new block to the chain. The miner who solves the puzzle first receives a reward in cryptocurrency tokens for their efforts.

  Another common method is Proof-of-Stake (PoS). In this system, miners stake their coins as collateral in order to validate blocks on the network. The more coins they stake, the higher their chances of being chosen as a validator and receiving rewards.

  Finally, there are also alternative consensus algorithms such as Delegated Proof-of-Stake (DPoS), Byzantine Fault Tolerance (BFT), and Practical Byzantine Fault Tolerance (PBFT). These systems offer different levels of security and scalability compared to PoW or PoS but require specialized hardware or software solutions.

  It’s important for investors and miners alike to understand these various methods before investing time or money into any particular project. Each has its own unique benefits that should be weighed against potential risks before making any decisions.

• #8.     Understand the Different Cryptocurrency Trading Strategies: Cryptocurrency trading is the process of buying and selling cryptocurrency in order to make a profit. Different trading strategies offer different rewards, so it is important to understand the different strategies before investing.
  
  

  One of the most popular cryptocurrency trading strategies is day trading. This involves buying and selling cryptocurrencies within a single day, taking advantage of short-term price movements in order to make profits. Day traders typically use technical analysis tools such as chart patterns and indicators to identify potential entry and exit points for their trades.

  Another common strategy is swing trading, which involves holding onto positions for longer periods of time in order to take advantage of larger price swings. Swing traders often use fundamental analysis techniques such as news events or economic data releases to determine when they should enter or exit a position.

  Finally, long-term investing is another popular strategy that involves buying cryptocurrencies with the intention of holding them for extended periods of time (months or even years). Long-term investors are usually looking for coins with strong fundamentals that have the potential to appreciate significantly over time.

• #9.     Learn How to Use Technical Analysis to Trade Cryptocurrency: Technical analysis is the process of analyzing the price and volume of a cryptocurrency in order to make trading decisions. It is important to understand the different technical analysis tools and techniques before investing.
  
  

  Technical analysis is a powerful tool for traders and investors to use when trading cryptocurrency. It involves studying the price and volume of a particular asset in order to make informed decisions about when to buy or sell. Technical analysis can be used on any type of asset, including cryptocurrencies like Bitcoin, Ethereum, and altcoins.

  The most common technical analysis tools are trend lines, support/resistance levels, moving averages (MA), relative strength index (RSI), stochastic oscillator (SO) and Bollinger bands. Each of these tools has its own unique characteristics that can help traders identify potential buying or selling opportunities in the market. For example, trend lines show the direction of an asset’s price over time while support/resistance levels indicate areas where prices may reverse direction.

  In addition to using technical analysis tools, it is also important for traders to understand how different types of news events can affect the price of a cryptocurrency. News events such as new regulations or partnerships with major companies can have a significant impact on prices so it is important for traders to stay up-to-date with current developments in the industry.

  By learning how to use technical analysis effectively when trading cryptocurrency, investors will be able to make more informed decisions about their investments and potentially increase their profits over time.

• #10.     Understand the Different Cryptocurrency Regulations: Different countries have different regulations regarding cryptocurrency. It is important to understand the regulations in your country before investing.
  
  

  Cryptocurrency regulations vary from country to country, so it is important for investors to understand the laws and regulations in their own jurisdiction before investing. In some countries, cryptocurrency may be completely banned or heavily regulated; in others, it may be freely traded with few restrictions. It is essential that investors research the legal landscape of their home country before engaging in any cryptocurrency trading activities.

  In addition to understanding local laws and regulations, investors should also familiarize themselves with international standards such as FATF (Financial Action Task Force) recommendations on virtual assets and anti-money laundering measures. These guidelines are designed to protect consumers from fraud and other financial crimes related to cryptocurrencies.

  Finally, investors should stay up-to-date on changes in legislation regarding cryptocurrencies. As governments around the world continue to grapple with how best to regulate digital currencies, new rules could come into effect at any time which could affect an investor’s ability to trade or invest in certain coins or tokens.

• #11.     Learn How to Use Fundamental Analysis to Invest in Cryptocurrency: Fundamental analysis is the process of analyzing the underlying fundamentals of a cryptocurrency in order to make investment decisions. It is important to understand the different fundamental analysis tools and techniques before investing.
  
  

  Fundamental analysis is a key tool for investors in the cryptocurrency market. It involves analyzing the underlying fundamentals of a cryptocurrency, such as its technology, team, and use cases. By understanding these factors, investors can make more informed decisions about which cryptocurrencies to invest in.

  When conducting fundamental analysis on a cryptocurrency, it is important to look at both quantitative and qualitative data. Quantitative data includes things like price movements over time and trading volume. Qualitative data includes information about the project’s development team, roadmap goals, partnerships with other companies or organizations, and any news related to the project.

  It is also important to understand how different economic forces may affect the value of a particular cryptocurrency. For example, if there are regulatory changes that could impact demand for certain coins or tokens then this should be taken into account when making investment decisions.

  Finally, it is essential to stay up-to-date with industry news so that you can identify potential opportunities before they become widely known by other investors. This will help you get ahead of the competition and maximize your returns from investing in cryptocurrencies.

• #12.     Understand the Different Cryptocurrency Tax Implications: Different countries have different tax implications for cryptocurrency investments. It is important to understand the tax implications in your country before investing.
  
  

  Cryptocurrency investments can be a great way to diversify your portfolio and potentially make some money. However, it is important to understand the tax implications of investing in cryptocurrency before you start trading or investing. Different countries have different regulations when it comes to taxes on cryptocurrency investments, so it is essential that you research the laws in your country before making any decisions.

  In general, most countries will treat profits from cryptocurrency investments as capital gains. This means that if you sell a crypto asset for more than what you paid for it, then the difference between those two amounts will be subject to taxation. Depending on where you live, this could mean paying income tax or capital gains tax on these profits.

  It is also important to note that many countries require investors to report their cryptocurrency holdings and transactions each year. Failure to do so could result in hefty fines or even criminal charges depending on the severity of the violation.

  Before investing in cryptocurrencies, make sure that you are aware of all applicable taxes and reporting requirements in your jurisdiction. Doing so can help ensure that your investment activities remain compliant with local laws while helping minimize potential losses due to unexpected taxation liabilities.

• #13.     Learn How to Use Arbitrage to Make Money Trading Cryptocurrency: Arbitrage is the process of buying and selling cryptocurrency in different markets in order to make a profit. It is important to understand the different arbitrage strategies before investing.
  
  

  Arbitrage is a popular trading strategy used by many cryptocurrency traders. It involves buying and selling the same asset in different markets to take advantage of price discrepancies. For example, if Bitcoin is trading at $10,000 on one exchange but only $9,500 on another exchange, an arbitrage trader can buy it from the cheaper exchange and sell it for a profit on the more expensive one. This type of trade can be done quickly and with minimal risk since there are no market movements involved.

  In order to successfully use arbitrage to make money trading cryptocurrency, you need to have access to multiple exchanges that offer different prices for the same asset. You also need to be able to move funds between these exchanges quickly so that you don’t miss out on any potential profits due to price changes. Additionally, you should always keep track of fees associated with each transaction as they can eat into your profits.

  Finally, it’s important not to get too greedy when using arbitrage strategies as this could lead you into taking unnecessary risks or making bad trades. Always remember that even small gains add up over time and will eventually result in larger returns.

• #14.     Understand the Different Cryptocurrency Security Measures: Cryptocurrency is vulnerable to theft and hacking, so it is important to understand the different security measures available before investing.
  
  

  Cryptocurrency security measures are essential for protecting your investments. There are several different types of security measures available, and it is important to understand them before investing in any cryptocurrency.

  One of the most common security measures is two-factor authentication (2FA). This requires users to provide two pieces of information when logging into their account, such as a password and a code sent via text message or email. This makes it much harder for hackers to gain access to an account.

  Another popular measure is multi-signature wallets, which require multiple signatures from different people in order to authorize transactions. This ensures that no single person can move funds without the approval of others.

  Cold storage solutions are also used by many investors as they store cryptocurrencies offline on physical devices like USB drives or paper wallets. These solutions offer greater protection against online threats since they cannot be accessed through the internet.

  Finally, there are decentralized exchanges (DEXs) which allow users to trade directly with each other without having to go through a third party exchange. DEXs use smart contracts and blockchain technology so that all trades occur securely and transparently.

• #15.     Learn How to Use Margin Trading to Make Money Trading Cryptocurrency: Margin trading is the process of borrowing money from a broker in order to make larger trades. It is important to understand the different margin trading strategies before investing.
  
  

  Margin trading is a powerful tool for traders looking to increase their potential profits. By borrowing money from a broker, you can make larger trades than would otherwise be possible with your own capital. This allows you to take advantage of market movements and capitalize on opportunities that may not have been available without the use of margin trading.

  When using margin trading, it is important to understand the different strategies available and how they work. For example, some brokers offer leverage which allows traders to borrow more money than what they have in their account. This increases risk but also has the potential for greater returns if used correctly.

  It is also important to consider the fees associated with margin trading as these can add up quickly if not managed properly. Additionally, there are certain risks involved when using this type of strategy so it’s important to do your research before investing any funds.

  By understanding how margin trading works and learning about different strategies, investors can potentially make more money by taking advantage of market movements while minimizing risk at the same time.

• #16.     Understand the Different Cryptocurrency Investment Strategies: Different investment strategies offer different rewards, so it is important to understand the different strategies before investing.
  
  

  One of the most important aspects of investing in cryptocurrency is understanding the different investment strategies available. Each strategy offers its own rewards and risks, so it’s important to understand them before making any decisions. Here are some of the most popular strategies for investing in cryptocurrency:

  1. Long-term Holding – This is a buy-and-hold strategy where you purchase a certain amount of coins and hold onto them for an extended period of time, usually months or years. The goal here is to benefit from long-term price appreciation as well as potential dividends or other benefits that may be offered by certain cryptocurrencies.

  2. Short Selling – This involves selling borrowed coins with the expectation that their value will decrease over time, allowing you to buy back more coins at a lower price than what you sold them for initially. It can be risky since there’s no guarantee that prices will go down, but if done correctly it can yield high returns.

  3. Day Trading – This involves buying and selling cryptocurrencies on short timescales (minutes or hours) in order to take advantage of small fluctuations in prices throughout the day. It requires quick decision making and good market knowledge, but can also yield high returns if done correctly.

  4. Arbitrage – This involves taking advantage of differences between exchanges by buying low on one exchange and then quickly selling higher on another exchange before prices even out across all platforms.

  . Mining - Cryptocurrency mining refers to verifying transactions on blockchain networks such as Bitcoin or Ethereum using specialized hardware called ASIC miners which generate new blocks containing transaction data every 10 minutes or so depending upon network difficulty levels.

• #17.     Learn How to Use Automated Trading to Make Money Trading Cryptocurrency: Automated trading is the process of using computer algorithms to make trading decisions. It is important to understand the different automated trading strategies before investing.
  
  

  Automated trading is a great way to make money trading cryptocurrency. It allows traders to take advantage of market movements without having to constantly monitor the markets and manually place trades. Automated trading strategies can be used for both long-term investments as well as short-term day trading.

  When using automated trading, it is important to understand the different types of strategies available and how they work. Some popular automated strategies include trend following, scalping, arbitrage, and market making. Each strategy has its own advantages and disadvantages that should be considered before investing.

  It is also important to understand the risks associated with automated trading such as slippage or latency issues which can cause losses if not managed properly. Additionally, there are certain technical requirements needed in order for an automated system to function correctly.

  Overall, learning how to use automated trading systems can help traders maximize their profits while minimizing their risk when investing in cryptocurrency markets.

• #18.     Understand the Different Cryptocurrency Scams: Cryptocurrency scams are becoming increasingly common, so it is important to understand the different types of scams before investing.
  
  

  Cryptocurrency scams are becoming increasingly common, so it is important to understand the different types of scams before investing. There are a variety of cryptocurrency scams that can be encountered, including Ponzi schemes, pump and dump schemes, fake ICOs (Initial Coin Offerings), phishing attacks, and more.

  Ponzi schemes involve paying returns to investors from their own money or the money paid by subsequent investors rather than from any actual profits earned through legitimate business activities. Pump and dump schemes involve artificially inflating the price of a particular coin or token in order to make quick profits for those involved in the scheme at the expense of other investors who purchase at inflated prices.

  Fake ICOs are fraudulent projects that claim to offer tokens with potential future value but never actually deliver on their promises. Phishing attacks occur when malicious actors send emails pretending to be from legitimate companies in order to steal personal information such as passwords or credit card numbers.

  It is important for anyone considering investing in cryptocurrencies to do thorough research into any project they may be interested in before committing funds. This includes researching the team behind a project, reading reviews about it online, and understanding how it works technically.

• #19.     Learn How to Use Leverage to Make Money Trading Cryptocurrency: Leverage is the process of borrowing money from a broker in order to make larger trades. It is important to understand the different leverage strategies before investing.
  
  

  Leverage is a powerful tool that can be used to increase the potential returns of trading cryptocurrency. By borrowing money from a broker, traders are able to make larger trades than they would otherwise be able to do with their own capital. This allows them to potentially earn more profits on successful trades and also increases their risk exposure as losses will also be magnified.

  It is important for traders to understand the different leverage strategies available before investing in order to maximize their chances of success. For example, some brokers offer higher levels of leverage which can result in greater profits but also carries an increased risk of loss if the trade does not go as planned. Traders should always ensure that they have sufficient funds available in case any leveraged positions move against them.

  In addition, it is important for traders to understand how margin works when using leverage so that they can properly manage their risk exposure. Margin refers to the amount of money required by a trader’s broker in order for them to open and maintain leveraged positions. If this margin requirement is not met then the position may be liquidated or closed out at a loss.

• #20.     Understand the Different Cryptocurrency Regulations: Different countries have different regulations regarding cryptocurrency. It is important to understand the regulations in your country before investing.
  
  

  Cryptocurrency regulations vary from country to country, so it is important for investors to understand the laws and regulations in their own jurisdiction before investing. In some countries, cryptocurrency may be completely banned or heavily regulated; in others, it may be freely traded with few restrictions. It is essential that investors research the legal landscape of their home country before engaging in any cryptocurrency trading activities.

  In addition to understanding local laws and regulations, investors should also familiarize themselves with international standards such as FATF (Financial Action Task Force) recommendations on virtual assets and anti-money laundering measures. These guidelines are designed to protect consumers from fraud and other financial crimes related to cryptocurrencies.

  Finally, investors should stay up-to-date on changes in legislation regarding cryptocurrencies. As governments around the world continue to grapple with how best to regulate digital currencies, new rules could come into effect at any time which could affect an investor’s ability to trade or invest in certain coins or tokens.