Cryptocurrency for Beginners: Complete Crypto Investing Guide with Everything You Need to Know About Crypto and Altcoins

By Nick Woods

Are you looking to learn how you can cash in on the Cryptocurrency revolution?

 

 

Have you been hearing about Bitcoin, Ethereum and Dogecoin lately in the news and can't seem to wrap your head around what there cryptocurrencies are? Do you wonder how you can start investing in crypto but don't really know what it is and have hesitations around investing in something you don't understand? Do you wish you were able to understand cryptocurrency but are afraid that it is too complex and complicated?

 

If this sounds like you, then keep reading!

 

Cryptocurrencies are fascinating new-age decentralized currencies that are only available online and allows the user to be somewhat anonymous. With thousands of cryptocurrencies available, there are some serious growth potentials. The sheer number of projects built upon these blockchains is enough proof that cryptocurrency is heading to the moon!

 

Understanding Cryptocurrency will help you achieve all of your goals with investing, no matter how big or small they are.

 

Regardless of who you are and what you want to accomplish, the basis of Crypto is the same for everyone. This book will help you understand everything you need to know about Cryptocurrencies and blockchain including the benefits and challenges of the new technology, and I will provide you with a step-by-step guide for achieving a higher level of understanding so you can feel comfortable getting involved with cryptocurrencies.

 

Never before has there been a book so gentle in its approach and so effective at understanding crypto from a beginner's level.

 

Within these pages, you will discover:

 

• What Cryptocurrency Is and Why It Is So Important

• An Introduction Into Blockchain Technology

• Step by Step Explanation on How Cryptocurrency Mining Works

• The Most Popular Cryptocurrencies

• What Is In Store for the Future of Cryptocurrency

 

AND MUCH MORE!

 

No matter how young or old, how inexperienced or experienced, or what education level you have, this book will be able to help you strengthen your understanding of Cryptocurrency so you can utilize it in your daily life to achieve the things you want to achieve. The things you want to achieve don't have to be huge goals like building a multi-million dollar investment portfolio (although this book can certainly help), but you can use it to start understanding what all the talk and excitement is about with this new technology.

 

If you're ready to start understanding about cryptocurrency and blockchain and learn how you can get involved in this groundbreaking opportunity - then look no further.

 

Don't waste another minute, scroll up and hit "BUY NOW" to get started today!

• Language: English
• Publisher: Publishing Forte
• Release date: Sep 17, 2021
• ISBN: 9798201365226

Nick Woods

Nick Woods has been active in the technology sector since the early 1980's. As a graduate of MIT, Nick has always been fascinated with how technology can improve our lives. Being involved in many start-ups as a computer engineer during the beginning of the Internet, Nick has always loved new and interesting technologies as it relates to how humans communicate and interact.In the mid 2010's, Nick became fascinated with blockchain and cryptocurrencies and after learning the ins and outs of the technology, started investing and mining the Bitcoin and Ethereum blockchains.After a fruitful business career, Nick is now retired in sunny South Florida with his wife Margeret. He enjoys spending time fishing, writing, getting visits from his 2 adult children and 6 grandchildren and going to the park with his chocolate lab Max.

Book preview

1

What is Cryptocurrency

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Cryptocurrency is a unique form of digital payment. It will be used online to pay for goods and services just like money is today when it becomes mainstream. You may be able to pay for merchandise electronically, just like we use traditional currencies. It makes use of an online ledger to maintain safe online transactions.

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Numerous companies have disseminated their own currencies, and these are often known as tokens. These currencies can be exchanged particularly for the goods or services that a company delivers. You will have to trade real currency for the cryptocurrency to receive the goods or services. In other words, you buy the cryptocurrency and keep it safe until you need it, all the while knowing your investment is likely to grow.

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The growth in the popularity of cryptocurrencies poses an existential risk to several traditional methods of finance. Cryptocurrencies significantly eliminate the middleman, which could be a financial institution. For example, you do not require a credit card or even a bank account to carry out a transaction in the world of cryptocurrencies. The potential for an upheaval in financial services exists, given how common smartphones and the Internet are, and that is all you need to transact in cryptocurrencies. This will allow you to make cheap, safe, and almost instant transactions and ultimately curtail the need for traditional banking infrastructure.

Cryptocurrency History

Bitcoin was the introductory cryptocurrency. In 2008, a person under the pseudonym of Satoshi Nakamoto published a white paper. This white paper described implementing a digital currency that utilized blockchain technology, which was called Bitcoin.

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Until 2011, Bitcoin was the only cryptocurrency that was available for investment. Then Bitcoin enthusiasts started catching sight of its shortcomings, so they decided to develop alternative coins, and these came to be known as altcoins (or alternatives to Bitcoin). They enhanced Bitcoin's design for aspects such as speed, protection, obscurity, and much more. Currently, a myriad of cryptocurrencies and countless other applications of blockchain technology are readily available. Litecoin was among the initial altcoins.

Crypto Benefits

Reduction in Corruption

When we put too much power into the hands of one individual or entity, the risk of that power being abused increases. Cryptocurrencies attempt to fix this by disseminating the power among the network individuals, unlike with traditional banking.

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Giving People Charge of Their Own Money

While using traditional cash, we are practically offering all our control to banks and the government. Even if these institutions are trustworthy to you, they can, at any point, freeze your accounts and withhold your authorization to use your funds. In some countries, if a person dies without leaving a will, the government has the right to seize their assets. Only the person owning them can access the funds or decide what to do with them with cryptocurrencies.

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Eradication of Extreme Money Printing

The central banks' administration can print money when they encounter a crucial economic issue. This process is also known as 'quantitative easing.' A government may depreciate its currency and avoid the current state by printing additional money, but it hardly solves the central crisis. It is merely a temporary fix rather than a long-term solution.

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Almost all cryptocurrencies have a limited and specified quantity of coins available. When all these exclusive coins are in circulation, a company or organization behind the blockchain has no straightforward way to generate more coins quickly. This makes the coins more valuable.

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Removal of the Middleman

A middleman, such as your bank or any other digital payment platform, charges you a fee every time you make a transaction. While using cryptocurrencies, all the network members in the blockchain replace that middleman, and their profit is defined distinctly from what the middleman makes when dealing with fiat currency. It is a very small amount in contrast.

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By removing the middleman, cryptocurrencies solve the problem of people with no bank account or who have restricted access to banks. Anyone with a mobile phone and an Internet connection can make payments using these currencies.

Difference Between Cryptocurrency and Fiat Currency

Even though the world is rapidly moving towards a cashless society, a very limited number of people understand how fiat currencies differ from cryptocurrencies.

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In technical terms, a fiat currency is a legal tender that a country's government supports through an authority such as a central bank. These currencies are not governed simply by one physical entity. They are instead established on the credit of the country's economy.

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The value of almost all fiat currencies stems from the forces of supply and demand in the market. In situations like hyperinflation, fiat currencies are at risk of becoming inadequate and obsolete because they are not attached to any physical commodities.

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In comparison to fiat currencies, cryptocurrencies are not regulated by governments or central banks. They are rare entries in a blockchain that cannot be altered until certain requisite conditions are fulfilled.

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The growth and development of cryptocurrencies as a viable option has worried some fiat currency issuers, like the central banks. With their increasing popularity, cryptocurrencies will probably supersede fiat currencies and replace them in the coming years.

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The major differences between fiat money and cryptocurrencies are as follows:

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Legitimacy

A country's government issues and regulates fiat currencies with the assistance of central banks. Therefore, fiat money is what we know as legal tender. The supply and demand of fiat money influence its value in the international market and is determined and controlled by the government.

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On the other hand, governments have no power over cryptocurrency. They are decentralized digital modes of payment, which means that no central authority has any control or constraints over their value in the market.

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Tangibility

Cryptocurrencies are virtual coins and are used to conduct operations online. They can be bought and sold precisely like fiat cash can but cannot be touched or felt.

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The physical or tangible aspect of fiat money can be a hassle, as it is not very practical to walk around with massive amounts of cash or coins.

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Means of Exchange

Cryptocurrencies can be exchanged only digitally as they are developed by computers and occur only digitally.

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In comparison, fiat currency exists in both digital and physical forms. People can carry out transactions and pay each other in cash. Electronic payment platforms enable the physical transfer of fiat money.

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Supply

Per the government's policies, central banks can increase or decrease the supply of fiat money whenever they deem it necessary, and these actions govern its value. There is no upper limit as to the extent of production and generation of cash.

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When it comes to the supply of cryptocurrencies, most have a limited amount of coins in circulation. The supply of Bitcoin coins is restricted to 21 million, giving them a stable value rather than a government-inflated one.

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Storage

Cryptocurrencies are in a digital format, and therefore, they can be stored only in virtual wallets. With some digital wallets, hacking risks are involved because of which people end up losing a considerable amount of coins.

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Fiat currencies are quite versatile when it comes to storing them. Online platforms permit people to hold their funds in a digital form. The banks also provide services and allow their customers to store money virtually and in physical forms.

Why Invest in Cryptocurrencies?

You may be an experienced investor who has been trading assets other than crypto or a beginner in the world of investing, and you are probably wondering why you should contemplate adding cryptocurrencies to your list of investments.

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Cryptocurrency makes sense for both skilled and new investors for a variety of reasons.

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Diversifying

There are multiple ways to carry out investment diversification. You can choose to diversify using various financial assets, such as bonds, stocks, Forex, etc. You can diversify depending on the type of industry, like healthcare, technology, or entertainment. You can disperse your investment between short-term and long-term investments. The addition of cryptocurrencies to your investment portfolio is integral because this diversification holds the potential to boost your portfolio's progress. The crypto market may respond differently to varied global and economic events, one of the central reasons for the higher potential.

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Capital Appreciation

The increase in the price or value of cryptocurrencies over time is known as capital appreciation. And it is one of the primary reasons many new investors are attracted to cryptocurrency more than traditional investments, such as stocks or even buying property.

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People are becoming millionaires overnight through investing in Bitcoin and other cryptocurrencies, and these were the biggest stories of 2017. This shows the growth potential of cryptocurrencies.

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Ideological Empowerment

The underlying technology for cryptocurrencies -blockchain - is breakthrough advancement as it can revolutionize almost every industry globally. It aims to overcome several monetary and financial issues, such as banking the unbanked.

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Blockchain technology combats the issues of a sharing economy by allowing companies the option to create blockchain-based sharing economy platforms. The platforms, so developed, are more affordable and are transparent too. They remove the need for the presence of a middleman. This cuts out the transfer fees that are charged on the sharing of normal

Reviews for Cryptocurrency for Beginners

[Justice Eze · Rating: 4 out of 5 stars]

Every part.it was an interesting read.very intuitive n educating.nice piece