Matthew Connor - Cryptocurrency: Ultimate Beginners Guide to Trading, Investing and Mining in the World of Cryptocurrencies

Cryptocurrency:

Ultimate Beginners Guide to Trading, Investing and Mining in the World of Cryptocurrencies

Matthew Connor

Copyright 2017 by Matthew Connor - All rights reserved.

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Introduction

C ongratulations on downloading Cryptocurrency: Ultimate Beginners Guide to Trading, Investing and Mining in the World of Cryptocurrencies. and thank you for doing so. Cryptocurrencies are fast proving that they are the wave of the future. They are popping up in more and more places and proving to be viable investments time and again; with the most popular of all, bitcoin, trading at around $20,000 as of December 2017. What all this means is there has never been a better time to get in on the action as long as you do it in the right way.

This is easier said than done, however, which is why the following chapters will discuss everything you need to know in order to get in on the cryptocurrency craze while the getting is good. First you will learn all about blockchain, the technology that makes cryptocurrency tick. Next, you will learn all about cryptocurrencies themselves including what makes them so popular and how the price for each is determined before then learning about the top cryptocurrencies to watch in the moment.

From there you will learn all about investing in them properly and how to choose the best exchange to go about doing so. You will then learn all about investing in them the right way to avoid losing your shirt in the process through creating a personalized trading plan and executing cryptocurrency trading strategies that are proven successful. With that out the way you will then learn about making money from cryptocurrency in another way, via cryptocurrency mining through both the cloud mining process and by building your own mining machine and mining via a mining pool. Finally, you will learn all about where the technology is likely headed in the future, how major world governments are looking to get in on the action and what to expect from cryptocurrency in 2018.

There are plenty of books on this subject on the market, thanks again for choosing this one! Every effort was made to ensure it is full of as much useful information as possible, please enjoy!

Chapter 1: Blockchain Basics

M ore and more these days, you cant go anywhere without hearing about cryptocurrencies of one type of another. If you are like approximately 75 percent of all Americans, however, then you arent quite sure what all of the fuss is about. Cryptocurrencies are a type of digital currency that are useful for a variety of different reasons. Their use, and indeed, their very existence, is thanks to an underlying technology known as blockchain.

While the use of the term can vary if it is being used in reference to smart contracts, cryptocurrencies in general or, most commonly, bitcoins, the heart of every blockchain is its ability to store large amount of primarily financial data in a decentralized database. A useful analogy is that blockchain can be thought of as Lego in that each blockchain is made up of many different parts, assembled in different ways, while still falling under the same general brand. More specifically, each blockchain stores data in such a way that it allows unparalleled access while still providing security that is extremely difficult to crack for reasons that will be discussed later.

Each block that makes up part of a chain contains all of the data for all of the proceeding blocks while also adding in its own. When a new block is added to the node of the chain in one location, that information is then automatically added to all of the other nodes that are connected to that chain after a verification process has occurred. Besides storing a wide variety of data, each block in a blockchain is also notable due to its ability to automatically timestamp when its individual transactions take place in addition to other information that allows it to easily determine its place in the chain as a whole.

The other extremely interesting part about blockchains is the fact that each has the ability to operate without any centralized authority or primary server that oversees the process to ensure everything works the way it is intended. Rather, these processes are spread amongst the nodes that contain the blockchain. This means that a single blockchain could easily be operating via thousands of different nodes spread across the entire world. These nodes are then able to easily communicate with one another via an advanced system that utilizes specially designed cryptography along with digital signals to guarantee the integrity of the chain at all times.

Each blockchain allows for two primary user types, read-only users and writeable users. Read-only users are allowed to look at the chain and its transactions and writeable users are able to make changes to the chain in the form of adding new blocks to it. Blockchain security is also unique in that it doesnt actively do much to prevent those with nefarious designs on the data contained within, rather, it relies on its very nature to ensure that those who would try to alter the data would be required to exert vast computational power to the extent that it is rarely a feasible, not to mention economical, proposition. The reasons behind just why this works are also described below.