Disclaimer: The information presented below is not meant to be taken as financial advice and if taken is purely at your own risk. I am not a financial advisor and the information is meant to educate not advise)
In my quest to further understand blockchain technology and cryptocurrencies I have noticed several beginner guides floating around, mostly misinformed and cost money to join. There is a swamp of information to sift through and without a financial or technical background, it can be absolutely overwhelming.
I was really impressed with the information and resources a friend sent to me which I have reposted here.
This will show you exactly how to research and educate yourself so that you can make an informed decision based upon your circumstances.
First and foremost upon entering the realm of cryptocurrencies, one should read the white-paper that started it all:
This was written by an unknown entity that goes by the pseudonym, Satoshi Nakamoto. This entity was heavily involved in the early development of Bitcoin, however, no one has heard from “him” since the end of 2012.
Moving forward the most critical aspect of understanding the cryptocurrency movement is blockchain technology. This is what is going to change everything; cryptocurrencies are merely the children – the aftermath of this tech. In the same way that the internet after the Dotcom boom transformed the landscape of life and business, the blockchain will transform the way economy, currency, and documentation is secured and moved throughout the globe without boundaries or beurocratic control.
Related Article: Blockchain Technology is the Solution to Internet Censorship
- DataDash: One of the better channels in my opinion: “DataDash is a one-stop shop for all things related to cryptocurrencies, data analytics & science, and spotting global trends through cutting-edge analysis.” It really is just that – the guy is spot on.
Every cryptocurrency trader watches DataDash.
- Crypto Investor: Very accurate and in-depth videos that are easy for anyone to understand.
- Crypto Tips: Her videos are well researched, easy to understand and to the point; most of them being only a few minutes in length.
- Coinscalender: Great resource to track ICO’s.
- Coinmarketcap: Tracks the analytics of virtually every coin in real time (even exchange volume, for those who like to research).
- Bravenewcoin: Very well written and thoroughly researched cryptocurrency articles.
- Cryptocurrencyinvestingnews: This site produces numerous articles daily and is a great resource for attempting to keep up with breaking topics.
- Store of value: Well researched cryptocurrency blog.
- Laura Shin, Forbes Senior Editor: She is by far one of the more talented writers in the blockchain community.
- DK – Medium blog writer: Provides some well researched technical analysis.
- BambouClub – Medium blog writer: His “Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto” is a must-read.
- Hackernoon: A great overall resource for all things technology.
Getting Started (Wallets and Exchanges):
Disclosure: Despite the proof of identity requirements, exchanges and wallets do not provide the same protections banks do.
There is often no or limited insurance for your account if the exchange goes out of business or is robbed by hackers, such as was the case with the infamous failed exchange Mt Gox.
Due to Bitcoin’s lack of legal status, many authorities do not know how to appropriately handle theft. Some larger exchanges have replaced customer funds after a theft from the exchange itself, but at this stage, they are not legally obliged to do so.
Every country has different options as far as what wallets and exchanges you can use.
For a complete list of countries and which wallets/exchanges are best used, visit here.
Coinmarketcap is also a great resource (especially research purposes) for tracking volume per exchange.
Related NEO article: (must read) Investor Warning: Major NEO Redflags
Related article: Best Ethereum Wallet (2018 Update) – 5 Options Reviewed
While there are numerous wallets and exchanges that have their pros and cons depending on where you live, I am going to cover what works for a US citizen.
- Open an account in http://Uphold.com Uphold allows you to fund your account with your bank or debit/credit card, into the 3 major cryptocurrencies: Bitcoin, Ethereum, and Litecoin. From there, you can transfer to an exchange of your choice.
∗ Make sure that when transferring, the two connecting addresses are the same coin. For example, use a Bitcoin address (Uphold) to transfer to a Bitcoin address (exchange).
Both addresses need to be the same coin. If you try to for example to transfer your Bitcoin to an Ethereum address, you will lose your Bitcoin.
How To: Transfer From Uphold to a Cryptocurrency Exchange
- Exchanges to use: Bittrex, GDAX (owned by Coinbase), Poloniex, Kraken, and Gemini
Read this article for an in-depth explanation of each exchange.
I would avoid Bitfinex.
Storing Your Cryptocurrency
Upload is a great platform to get money from your bank and into trading cryptocurrency, however, I would not store the bulk of your cryptocurrency on Uphold or any exchange. They should simply be used to trade.
Hardware wallets are not free and can cost anywhere from $50 – $100 plus shipping. The two most effective hardware wallets I have researched are:
I use a desktop based wallet: https://electrum.org/#download
Paper Wallet (Cold Storage):
Considered to be one of the safest types of wallet, paper wallets are an offline cold storage method for saving your cryptocurrency. It includes printing out your public and private keys on a piece of paper which you then store and save in a secure place. The keys are printed in the form of QR codes which you can scan in the future for all your transactions. All you need to worry about is the piece of paper.
Extreme Cold Storage:
This method of storage is for those who are tech savvy, do not trust USB connection vulnerabilities, and have a lot of cryptocurrency. This method is also not intended for those who wish to use their cryptocurrency, as this makes it difficult to access.
To learn more, continue reading: “Extreme Cold Storage: A Fortress of Solitude for Bitcoins“
These types of wallets are ideal for groups of people that need access, or to eliminate human error, as more than one signature holder is required to access the wallet. BitPay is one of the more popular multi-signature wallet platforms.
How do I participate?
I have researched the options out there, and have had recommendations of three investment tools that use leverage through daily compounding. I have seen physical evidence of these programs producing several millionaires within months of them starting to participate. If ever there was a legitimate HYIP, this is it! (there are no guarantees of course, and the above is only an example of what is possible)
All are FREE to join, and have no minimum deposit. You will need to figure out for yourself how fast you want to build wealth.
In the meantime this is what I recommend:
1. BitConnect ~ Average 1% daily return (not guaranteed) 5% Affiliate Commission. Get started here: https://bitconnect.co/?ref=gotell
2. Davor Coin ~ Lending Platform up to 2% per day (not guaranteed) 8% Affiliate commission. https://davor.io/Account/Registration?r=F95F9D
3. Bitreserve ~ Mining/Lending platform. Up to 3.6% daily interest (not guaranteed) 10% Affiliate Commission
These are lending platforms combined with a Bitcoin Wallet, an affiliate plan, and daily compounding interest.
You cannot buy Bitcoin directly from within Bitconnect, so you will need a Bitcoin Wallet (bank) which you can get here:
Hopefully, this guide has enough information to get you well on your way to becoming a cryptocurrency expert. If you have any suggestions, please feel free to comment below.
One of the most important pieces of advice I can offer is to absorb all of this with an open mind. There is a lot of deception at play here, we are dealing with the possible transition of monetary power from centralized banks to possibly the people.
Do not believe anything unless you can research it yourself.
… and always remember: the second you think you know something, you stop learning.