Cryptocurrencies: Invest Wisely in the Most Profitable and Trusted Cryptocurrencies to Make Money

By Jensen Cox

The world of cryptocurrencies and bitcoins has drawn more and more attention from traders and investors in recent years.

Despite the fact that most people have heard of these new investments and payment methods, many still don't fully comprehend what they are and how they operate.

The guidebook mentioned in this text provides a special chance to learn everything you need to know to start using cryptocurrencies deliberately and profitably.

After providing a theoretical examination of the fundamental properties of cryptocurrencies, the article will provide you with helpful guidance on how to approach this market appropriately and on the key factors to consider before making any financial transactions.

As stated in the text, there are presently more than 6,000 different cryptocurrencies available, each with unique properties and potential for profit.

You can learn from the book which currencies are currently the most profitable and which ones you should stay away from, giving you the knowledge, you need to make wise judgements.

Additionally, the book will give you all the knowledge you need to invest risk-free and safely. You will discover how to safeguard your money and stay clear of the traps and frauds that, regrettably, also exist in the cryptocurrency world.

Do not hesitate, click on "buy now in 1-click" and start discovering the world of cryptocurrencies right now.

With this manual, you will have all the tools you need to become a successful cryptocurrency investor or trader.

• Language: English
• Publisher: Miller
• Release date: May 8, 2023
• ISBN: 9798223596622

Jensen Cox

Jensen Cox is an esteemed author renowned for his profound insights and meticulous research in the fields of history and business. With an exceptional ability to weave captivating narratives and shed light on complex subjects, Jensen has established himself as a trusted authority in both disciplines. Through his thought-provoking works, he has consistently delivered invaluable knowledge and enriched the understanding of readers around the world.

Book preview

FOREWORD

The world of cryptocurrencies is complex and can seem hostile at first sight for neophytes. But it's exciting, and you're only at the beginning of the journey. With the acquisition of this book, you take a first curious step towards knowledge. Congratulation!

Firstly, and even before you begin reading, it seems vital to us to make clear what you will and, more importantly, will not find in this book. Indeed, cryptos are the subject of numerous fantasies due to the way they are portrayed in the media, their novel and sophisticated terminology, and the fervour they inspire. Reading the newspaper article titles will suffice to persuade you of this; they emphasise effortless wealth creation or, on the contrary, societal devastation. Unfortunately, a large portion of the interest in bitcoin is artificially fueled by the desire for quick cash.

In this book, you will not find that. We will not discuss the financial aspect. If you're looking for a book to unearth the new cryptocurrency that will make you rich easily, put this one back on the shelf. The harsh reality is that sorcerer's apprentices who improvise trading in the crypto market are often disappointed. Beware of the many influencers who recommend investments with miraculous returns. Scams also exist in these new assets. Making money with Bitcoin is possible, yes. But this is not done without risk, and above all, without first understanding what it is all about.

As a result, you can expect to find a method based on the basics in this book. We won't tell you how much Bitcoin is valued in euros—10,000, 50,000, or one million. But we'll make an effort to explain why it's not worth 0 to you. If you want to learn more about the advantages of Bitcoin, Ethereum, and other cryptocurrencies as well as the issues they solve, the difficulties they face, and their history, keep reading. Our goal is to open up what we anticipate to be a likely technological, financial, economic, political, and cultural revolution. A serious test of each country's sovereignty for France, for Europe, and globally.

We hope that this book serves as an easy, understandable entrance point into the complicated and continually growing topic we discuss while still being reasonably ambitious. Though completion is a never-ending pursuit, if this book piques your interest, you can continue your intellectual exploration on your own, especially with the help of the Internet. We hope that by the time you read the variety of content provided, you will be more capable of separating the wheat from the chaff. And if you enjoyed this book, you can help spread the word by recommending it to others.

And now the journey can begin. We hope you, too, will experience what many people – including the authors of this book – experience or have experienced learning about this topic. A process that English speakers describe with the expression "down the rabbit hole " 1 : an unexpected, surprising, sometimes strange journey, but also full of satisfaction and wonder

1 . In reference to the book Alice in Wonderland in which Alice begins her journey by entering a rabbit hole which she had no idea was the entrance to Wonderland.

INTRODUCTION

Behind the craze, major issues

It's a revolution: in September 2021, the President of El Salvador Nayib Bukele announced that bitcoin was becoming the official currency in the country, before buying it for more than 50 million dollars 1 . The small Central American state thus became the first in the world to officially adopt this motto.

Although no one can say for sure at this time whether this innovative project will be successful or not, interest in bitcoin is rising. not simply in terms of the government. A few months before doing a U-turn, Tesla made a significant investment in this asset and revealed the prospect of utilising it as payment to purchase a vehicle. Christie's and Sotheby's accept cryptocurrencies as payment for digital works known as NFTs. It is also possible, for everyone, to buy a pair of shoes, a video game, a pizza, to book a trip in bitcoins 2 ...

Bitcoin, born in 2009, was first adopted by technophiles and then discovered by investors from 2013. 16% of the population had already invested in a cryptocurrency, including 31% of individuals aged 18 to 29 3 . In France, at the beginning of 2022, this represented 8% of the population, a figure which rises to 12% among young people 4 . This is more than the proportion of French people holding own shares. And interest is growing: a recent study by the European Central Bank (ECB), yet skeptical, even hostile, to cryptocurrencies, revealed at the end of May 2022 that 10% of European households held cryptos, led by the Dutch, with nearly 14% 5 . The craze for cryptocurrencies is therefore far from marginal.

The media quickly picked up on the phenomenon and initially treated it sensationalist: we mention Eldorado, the price of bitcoin and its roller coaster, and the term mining, which is used to describe the technical aspects of Bitcoin, is reminiscent of the extravagant craze and massive human movements of the 19th-century gold rush. Afterward, everyone can see that it is not a fad but rather something deeper after more than ten years. New words like blockchain, peer-to-peer, tokens, NFTs, stablecoins, DeFi, exchanges, and many others have emerged as the ecosystem has grown more sophisticated. There are so many topics that a beginner seeking to comprehend or invest may find challenging to access.

Unconnected from the established banking system, its financial institutions, and centralised authorities, and focused at preserving individual freedoms and economic emancipation, a new monetary and financial system is being developed behind the frequently misleading picture of speculative excesses. Cryptos have a significant and wide-ranging impact on culture, geopolitics, and democracy as a new system of communication and information, just like the Internet did before it.

But what does this mean concretely? And how do you navigate this crypto buzz – in August 2022, the market had nearly 20,000 cryptocurrencies 6 ? What role does Bitcoin play in this universe that keeps growing every year?

Behind Bitcoin, there are also many other cryptocurrencies that have appeared since the 2010s, such as Ethereum, which go along with the idea of Internet of value or Web 3, a new way to think about the digital economy. Whether it is the world of entrepreneurship or the world of the banks themselves, the financial sector is directly affected and tries to adapt.

Let's begin with a tour through time to grasp where cryptocurrencies come from and what issues they are seeking to solve in order to comprehend how this entire ecosystem has developed in just a dozen years.

1 . August 2022 value, 1 bitcoin representing approximately $22,000. This capital was composed following a succession of investments from El Salvador in 2021-2022 (figures in June 2022).

2 . Pauline Armandet, Vueling airline will accept payment in cryptocurrencies, on www.bfmtv.com , June 2022.

3 . Andrew Perrin, " 16% of Americans say they have ever invested in, traded or used cryptocurrency ", at www.pewresearch.org , November 2021.

4 . Crypto in France: structuring of the sector and adoption by the general public, study conducted in 2021 by KPMG and ADAN on an IPSOS sample of 2003 individuals over the age of 18 representative of the French population, and 29 companies from different business subsectors.

5 . " Decrypting financial stability risks in crypto-asset markets ", study by Lieven Hermans, Annalaura Ianiro, Urszula Kochanska, Veli-Matti Törmälehto, Anton van der Kraaij and Josep M. Vendrell Simón, at www.ecb.europa.eu , May 2022 .

6 . Figures from the CoinMarketCap site, site for observing the price of cryptocurrencies on the various trading platforms.

CHAPTER 1

Changing one's perspective towards the monetary system

Not only have individuals, businesses, and governments made significant investments in Bitcoin, but this has also resulted in widespread media coverage, which has followed the cryptocurrency's soaring rise in value. However, how is this conceivable for a 'digital currency' that can be traded with just a few clicks from a computer or smartphone? Is it feasible to have faith in dematerialized funds when they are only represented by lines of code?

We can assume that bitcoin complies with the fundamental rules governing currencies and has grown inside a monetary system that has long since become essentially dematerialized. Our money became amorphous long before it was possible to transfer funds between institutions or before online payment systems like PayPal. It has become customary to use a bank card to pay for purchases. For everyone, using a banknote to make a payment is a regular transaction; nonetheless, it never amounts to more than a piece of paper, whose true worth is abstract, provided by a middleman, in whom we put our trust: the bank.

The history of the monetary system has precisely allowed the emergence of cryptos in the world as an imperative responding to various problems, such as the excesses of the financial system or the protection of privacy, threatened by the rapid development of the Internet and its concentration. extreme. It seems essential, in order to fully understand the role of these currencies, to immerse oneself in the history of the economic and monetary system 1 . In fact, it was in this setting that a small community of cryptography enthusiasts created their ideology, which tries to encrypt, for instance, messages to protect their confidentiality. The cypherpunks are those people. And the UFO that will be revealed in 2008 by a certain Satoshi Nakamoto is the product of their ideology: Bitcoin.

At the beginnings of the monetary system

What exactly is money? You already have the beginning of the solution when you open your wallet: coins, bills, a bank card, even a cheque. But when did cultures all around the world conclude that these items had any kind of commercial or economic value? Why and how is it possible to swap a piece of paper with the marking 50 e for goods or services that are the result of someone's labour of love in exchange for a piece of paper? How is there a gold equivalent for this same banknote? Furthermore, what does gold represent, and why? These questions are fundamental to understanding the value systems on which bitcoin and other cryptos are based, and which are at the origin of the market economy as we know it today 2 .

CURRENCIES AND ISSUE OF TRUST

Humans employed the barter system long before the adoption of gold in exchange for goods and services. For instance, a large quantity of wheat might be exchanged for other raw or finished goods in ancient Egypt. The main issue back then was determining what quantity was worth what: is a metre of cotton fabric worth the same as 500