Cryptocurrency Trading & Investing Bitcoin & Altcoin Ultimate Money Guide

By InvestingWizard Press

Are you aware that Bitcoin and Altcoins are the highest assets that were able to make lots of traders, investors, and other average people with 9-5 jobs millionaires or even billionaires over the past decade?
So you want to jump into the fun world of cryptocurrency?

If you are like most people reading this, you may wonder if it’s too late. You may even be regretting not jumping in when you first heard your friend mentioned it a few years ago.

Do not fear! Although we have experienced some incredible growth recently, it’s not too late. The fact is we are still in the early stage. Also, it seems that the next peak of cryptocurrency is around the corner. The question is: are you ready to make a fortune?

Where can you start, and how can you take most of this $2 trillion opportunity?

That’s why we’ve created this Cryptocurrency Trading & Investing: Bitcoin & Altcoin Ultimate Money Guide to help you arm with the updated information and knowledge of cryptocurrency, especially how you can make money with cryptos, whether you want to use cryptocurrency to make some profits, a living or no-brainer passive income.

Inside this guide, you will learn:

* Cryptocurrency basics & Best Cryptocurrencies To Invest In 2021 And Beyond (with analytics)
* Cryptocurrency Trading (Day Trading & Swing Trading with strategies)
* Cryptocurrency Investing (Short-term & Long-term with strategies)
* Best Crypto Tool Kit (The Top crypto tools of 16 different categories that you will need along your money-making journey)
* 16 Other Proven Ways of Making Money With Cryptocurrencies
* Everything you will need to know about Crypto Tax (updated information)

This handy guide provides you with key information and instructions that will help you make a fortune with cryptocurrency based on in-depth research. However, it is not just a theoretical presentation. You will learn practical knowledge with examples in easy-to-understand approach. Even if you have little or no knowledge of cryptocurrency, you will get confidence in this space too.

The cryptocurrency evolution is coming, don't leave this opportunity of making generational wealth on the table again!

Let's rock the Cryptocurrency investment!

Just click "Buy Now" to Get Your Guide Today!

• Language: English
• Publisher: Dream Ink
• Release date: Jun 3, 2021
• ISBN: 9781005575298

Book preview

CHAPTER 1

Cryptocurrency 101

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1.1 What Is Cryptocurrency

Cryptocurrency is a digital and decentralized currency. In other words, you can use cryptocurrency as a type of payment to exchange goods and services online. You can also think of them as you would casino chips or arcade tokens. Their potential to grow or store value has caught the eye of lots of investors. As of April 2021, more than 10,000 different cryptocurrencies are available today. Among all the cryptocurrencies, the most original and popular one is Bitcoin, which was launched in 2009. Ethereum, Bitcoin Cash, and Litecoin are some other common cryptocurrency examples. Every one of these cryptocurrencies serves a different purpose. Some are designed for direct and private transactions, and some others are optimized for cash use.

Cryptocurrencies are built using blockchain technology. The blockchain is a decentralized technology spreading among computers that record and manage transactions. Many people may think they are interchangeable since cryptocurrencies were the first applications on the blockchain. While the fact is cryptocurrencies are just one application case of blockchain. 

Cryptocurrencies are entirely digital. There is no bill connected with the coin you have nor physical coins. Cryptocurrency owners hold their coins in a digital wallet and use exchanges to buy and sell. Your wallet can be online or store offline on hardware devices, like USB drives.

Currently, like the U.S dollars, most currencies are back by the central bank and the full faith and credit of United States governments. While cryptocurrencies are valued and maintained by their own users.

The decentralized ledger records the cryptocurrency transactions. This ledger is what we know as the blockchain. The transaction will be added to the blockchain every time the cryptocurrency is bought or sold. Anyone is able to participate and join in the blockchain, but the people involved and the data on individual transactions will be secured using cryptography.

1.2 Main Types of Cryptocurrency

Blockchain brings together three major types of cryptocurrency.

Bitcoin (BTC)

Bitcoin was created in January 2009. The identity of the individual(s) who created the technology is still a mystery. It follows the idea of setting out in a whitepaper by the mysterious and pseudonymous – Satoshi Nakamoto. Bitcoin provides the promise of lower fees of transactions compared to traditional online payment mechanisms. It’s operated by a decentralized authority, which is unlike the government-issued currencies.

Bitcoin is one of the first iterations of cryptocurrency. Its design and philosophy set the benchmark for other coins’ development. However, there are several shortcomings regarding its implementations. For example, its smart contract capabilities are limited. The consensus mechanism used to create blocks are time-consuming and energy-consuming. 

Altcoin

Altcoins are cryptocurrencies other than Bitcoin. Although altcoins share some similar characteristics with Bitcoin, they have other different features. For example, Some altcoins distinguish themselves from BTC by offering additional or new capabilities, such as low-price volatility.  Other altcoins use different consensus mechanisms to validate transactions or create blocks.

By distinguishing themselves from BTC, altcoins have created the market for themselves. According to CoinMarketCap, altcoins have accounted for more than 40% of the total cryptocurrency market by March 2021. In some cases, altcoins aspire to become the next BTC by becoming an inexpensive approach for digital transactions.

Tokens (for dApps)

Compared to the other two major types of cryptocurrencies, tokens are unique because they typically don’t have their own blockchain. Tokens are used on decentralized applications (dApps). These dApps are created to use smart contracts, which is the reason that they use tokens.

Tokens usually don’t have to represent a physical thing such as a house or electricity. Instead, they can be used to buy things on the dApp.

1.3 Best Cryptocurrencies to Invest In

Are you looking for the next cryptocurrency to invest in? Have you found yourself wondering: should I invest in Bitcoin or Ethereum? Maybe you already invested in both, and you have no clue what to invest in next? Since there are more than 7,000 different altcoins out there, it’s easy to get overwhelming, especially for beginners. Besides, there are many coins with similar functions or plans that will take decades to be conceptualized fully. How can you tell which ones will be the next best cryptocurrency investment? We have all been in that situation before, so we understand how confusing it can be when looking for new cryptocurrency investing. However, don’t worry! We are going to introduce the top cryptocurrencies that are most worthy of investing in 2021 and beyond. Let’s get started.

Bitcoin (BTC) – On the way to replace gold as the ultimate value store?

Somehow, if you have only heard of one cryptocurrency, it is most likely Bitcoin (BTC). Currently, it has a 40% share in the entire cryptocurrency market and is the biggest cryptocurrency. It is the oldest cryptocurrency and still dominates the market. However, you may wonder: Is the value of Bitcoin already reaching its peak, and is it still the best cryptocurrency to invest in the future?

Actually, we wish we knew the clear answer! However, the following information could help you determine whether investing in BTC is the right choice for you.

It’s not surprising that BTC gets the top of the list of cryptocurrency investing. Since its birth in 2009, it has dominated the market and is known as the King of Cryptocurrencies. So far, there’s no sign that this situation is going to change in the near future.

According to Ryan Selkis, the CEO of Messari, a cryptocurrency tracking site, Bitcoin and Ethereum will remain in their top positions of market capitalization, which is the opposite of others cryptos that he has predicted are going to lose their ranking in the leading cryptocurrencies in 2021.

In July 2020, the chart associated with Citibank once predicted that Bitcoin has the chance of skyrocketing to an incredible $120,000 in 2021, which is more than double its current price at the time of writing. Three main reasons for the dramatic price increase of Bitcoin include:

First, because of the Covid-19 pandemic, central banks, including US Federal Reserve, have printed more money in order to stimulate the economy, which is as much as about one-fifth of US dollars were printed in 2020. This means that the US dollar has decreased in value.

Second, Bitcoin has gone through a halving in May 2020, which is where the mining blocks’ reward is halved. This means that fewer Bitcoins is being mined and introduced to markets.

Third, due to the above two points, financial institutions have realized that Bitcoin can hold value better than gold since it’s the only asset with a fixed amount, which even didn’t get claimed by gold.

JPMorgan once called BTC a scam in Jan 2021 but expects it to reach $146,000 now. In addition, the Winklevoss twins believe that BTC can reach $500,000 eventually in the next decade and surpass the gold market cap that is currently between $10 and $11 trillion. Many experts believe BTC can be one of the best cryptocurrencies to invest in now.

Bitcoin Investing

If you plan to invest in BTC, you need to stay updated with the latest trends and news around BTC. If there’s news released about a new technical improvement, that might be a good time to buy BTC. Or if there is a big fall in cryptocurrencies’ price, you might want to think about buying BTC too, as you are able to buy it at a low price.

Even though you have missed the first big opportunity to invest a few years ago, investing in BTC can still be a good idea. It all depends on whether you believe in BTC’s future. If you are not a believer, then just avoid it. If you are, you should think about starting to invest in it.

Risks of Bitcoin Investing

BTC’s value tends to fluctuate a lot. You could see the price rise or fall thousands of dollars within a month. If you get nervous because of this wild fluctuation, you might want to stay away from it. Otherwise, these fluctuations should not be too concerning as long as you consider it a long-term investment.

On the other hand, the current high price of Bitcoin could be another reason to reconsider investing in it. At the time of writing, one Bitcoin is being sold at more than $50,000, and many people cannot afford to buy one whole share. So for those investors who don’t like buying partial shares, this is considered a negative.

Ethereum (ETH) – There will be a major update on this lifeblood of DeFi in 2021

If Bitcoin is considered as the Cryptocurrency King, then ETH is the heir. Ethereum is the world’s main cryptocurrency other than BTC and stays a strong market cap since 2015 when it’s created. It’s market cap has reached approximately $209 billion at the time of writing.

Ethereum has been strong throughout 2020 despite the uncertainties brought by the Covid-19 pandemic, which has shaken the performance of almost every other crypto.ETH should be a serious choice if you are looking for the top crypto to invest in now.

ETH Vs. BTC: Is ETH a better investment than BTC?

There was a surge in ETH’s value in 2020 when it hit $1,000. There are two main factors behind this surge:

Growth of decentralized finance (DeFi)

ETH platform supports many cryptos that are