FLLC Guides - Cryptocurrency: The Simple Yet Perfect for Beginners Guide Explaining What it is and How to Take Advantage of this Opportunity

Cryptocurrency: The Simple Yet Perfect for Beginners Guide Explaining what it is and How to Take Advantage of this Opportunity

Copyright 201

Disclaimer

• Although the author and publisher have made every effort to ensure that the information in this book was correct at press time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause. This book should not be relied as financial advice. The author and the publisher are not a financial advisor, this is not financial advice. This is not an investment guide nor investment advice. The author does not recommend anything. This book is for informational purposes only.

Table of Contents

One super popular form of investment thats recently gained momentum is cryptocurrency. You may be familiar with bitcoin, which is essentially hat started all of this, and there are others such as Ethereum, which is a Turing programmable currency that lets developers create different technologies and apps for those who dont want to use bitcoin, the Litecoin which is essentially the digital silver that is what is supposed to be the competitor to bitcoin, which is essentially the digital silver. There are many more of these out there, and you may just wonder what this is.

Youve probably heard of people getting super rich and trading with bitcoin. How in the world can you do that? Whats really how you use this? Whats so special about this well, bitcoin? Youre about to find out the importance and significance of these cryptocurrencies that are out there. This book will tell you everything that you need to know, as a beginner, about cryptocurrency, and just whats so special about it. you will learn a bit about how to trade it, get it, and mining it, along with some precautionary measures. This is a different from of trading compared to say, stocks and other investments, and its a high risk market, but this book will give you the lowdown on what it is, and why its important.

So, what is this? Why is this so important? Well, youre about to find out. This chapter will highlight what cryptocurrency is.

What is it?

In essence, cryptocurrency is a type of payment thats used to exchange among those online for services and goods. Typically, the companies that this revolves around have the currencies that are form of tokens, and theyre traded for a good and service. In essence, if youve ever been to the arcades that are around, you get tokens right. These tokens then are used to get a good or service in many cases, like a stuffed animal. The same goes for casinos, where you pay some money, you get tokens, you use it on the slots, and if you win big and get a ton of tokens, you then trade them in for your money back, thereby having more money. In essence, youre exchanging actual money to utilize this. These all in essence work under something called a blockchain.

Blockchains, in a pretty simple manner, are the technology kept centralized, and theyre spread across different computers, and this is where they record transactions. These blockchains allow for more security.

So, Whats a Blockchain?

A blockchain is basically the genius invention that is used to help regulate this. now, what you do, is first, you request a transaction, and from there this is then broadcasted in a network of P2P lending, and in essence, theyre all connected by computers. These are known as nodes.

These nodes ten go through and they validate the transactions that are done, and the status of the user via algorithms. From there, you then get the transaction verified. Now, the cryptocurrency has no value intrinsically thats not redeemable in a different commodity.

It also doesnt have physical form, and it only exists within the network. In essence, the supply is determined by a bank centrally, and the network is decentralized.

Now, once this is all verified, the transaction then combines with other transactions on this in this, in order to create a block of new ledger data. This data, is then added to all of the other existing ledgers of chains, all of them block form, and in this sense, its in a means that wont be able to be changed, and its permanent. Thats where the term blockchain essentially comes from. From there, the transaction is then wrapped up.

So why use this? Well, the database is essentially distributed, and they then dont have a singular location, and in a sense, these records are verifiable, and public, and since there isnt centralized information, a hacker cant corrupt it. all of these computers are working at the same time, and the data is then accessible. In essence, its kind of like you have a giant Google doc, where everyone shares the information.

Why is this so Popular?

In essence, when you invest in this, youre holding a share of this, so in the instance that bitcoin will replace the reserves of central banks, and the currency is dominant, you in essence will be a whole lot richer, since the value goes up. In a sense, these cryptocurrencies are creating a very secure ecosystem that is a silent money revolution. The value of the dollar is very versatile, and in essence, its falling. Its a form of security, and if you start to see it falling, you can always bail out. Lots are buying into this because they believe it will become way more widespread.

There is also the fact that this actually removes central banks, which actually is the reason why money is reduced via inflation. The blockchain system is a very decentralized means to process and redo all of this, and it does work better than a traditional payment plan. It also does have the anonymity of this, which means for transactions to happen out of the governmental eye. Some also do believe that these currencies are going up in value, and they dont have interest, which means that it will cause you to have more money.

This in essence summarized why many are turning to cryptocurrencies. It also defined what it is, and how the blockchain system works in this case, to help you better understand just what cryptocurrencies can do.

Lets now discuss how you invest. In essence, you first will need to buy it, and then you can go from there. This chapter will discuss how.

The first thing that you will want to do is buy it. I do suggest going with bitcoin first, and from there, you will in essence own that share of bitcoin. Once you do have this, you then purchase something called altcoins in exchange for it with different exchanges out there.

The two best places to get bitcoin are Coinbase and XCoin, which are two of the most popular ones. Now, you want to make sure that when you do have a login for this, you make sure that you add a second layer of verification. There have been instances of stolen bitcoin, even with this centralized blockchain, so make sure to keep your security at the highest it can be.

You should ideally have a google, or SMS login to protect you. Its also important to make sure that you choose a good bitcoin exchange place to begin with. Some places, such as Bittrex, CEX, and Bitfine have disabled registration, so you should go for the other two that were listed before, or Binance and Kucoin, to do exchange.

In essence, at this point it is similar to day trading, where you will trade your bitcoin and in essence invest in the market that looks promising. You need to look at the market very carefully though, since this is actually a super volatile market, and with the highs and lows changing constantly, you need to watch out for this. It does involve insane levels of profit increase, and with bitcoin hitting high levels, its definitely something with trying out.