Your Guide To Safely Buying, Selling and Trading Crypto Currency
Free Introduction & Guide. From Basics, Key Facts, Knowledge On Trading Plus Much More
BASICS
PLANNING
RESEARCH
TRADING
PURCHASING
INFORMATION
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BASICS
The term "currency trading" can represent different things. In terms of Digital
currency, trading involves the buying and selling of coins on an exchange.
We can also trade these coins with other account holders such as our family and
friends via the secure wallets provided by each Crypto currency.
These articles, on the other hand will discuss currency trading as buying and selling
currency using online exchange with the intention to profit and gain capital.
These articles are provided for general information only and to help you gain
a better perspective by sharing what we have learned.
A digital coin exchange rate is the rate at which one coin can be exchanged for
another. It is always quoted in pairs like the ADA/BTC.
Similar to the currency we use everyday, the Euro and the US Dollar rates
fluctuate based on economic factors like inflation, industrial production and geopolitical
events. These factors will influence whether you buy or sell a currency pair.
When trading with digital currency, Bitcoin and Ethereum are used to trade depending
on the exchange used with many more to follow such as NEO, COSS to name a few.
The ADA/BTC (Ada / Bitcoin ) rate represents the current price of a single Ada coin and the
Amount of Bitcoin required to purchase. Depending on the exchange used we either trade
using Bitcoin or Ethereum which are purchased prior and deposited into the exchange of
our choice.
We have recommended a few reliable and secure exchanges on our website
to get you started and will update you with more in the near future as we build Cryptonix
A great website used by most of the community is www.coinmarketcap.com. They
provide valuable information about the Crypto currency market, giving us statistics on over
1000+ Crypto currencies including details on their current price, circulation, market cap as
well as other key information to help place yourself in a better position before investing.
If you believe a particular coin will increase in value, a purchase can be made with either Bitcoin
or Ethereum. Each exchange has a minimum buy amount ranging from £2-15.
If the value for a coin rises, you can simply decide to sell your coins making a profit or keep
them for long term.
If not trading and deciding to invest for the long term, withdraw coins to a wallet for security
and store keys etc safely. More explained on wallets in terms of storage in other topics.
Please keep in mind that Digital currency trading involves a high risk, so please take your
time and to learn markets, services etc
Examples of crypto currency trading :
What is currency / coin trading?
How trading works
PLANNING
Finally, it cannot be stressed enough that trading in an exchange carries
a high level of risk, and may not be suitable for everyone. Before deciding to trade
you should carefully consider your investment objectives, level of experience, and risk
appetite. Remember, you could sustain a loss of some or all of your initial
investment, which means that you should not invest money that you cannot afford
to lose. If you have any doubts, we recommend that you seek advice from an
independent financial advisor.
Starting with smaller amounts is wise which allows you to build experience and
develop a better understanding, gaining a better perspective. With time you
begin to develop an eye and will spot patterns more easily. With Digital Currency
we have to remember most of the information we are researching to determine the
investment is found online due to the lack of coverage from the main stream
media and in return can be time consuming.
Lately, currencies have been on a roller coaster ride with record breaking highs and
lows. The world of Digital Currencies is dominating news headlines; but what does it
mean, and more importantly, what do you need to know before you get on board?
First of all, it's important that you understand that trading the Crypto Exchange
market involves a high degree of risk, similar to forex. Including the risk of losing
money. Any investment whether it be forex or Digital should only
involve capital you can afford to lose.
You may have noticed that the value of coins goes up and down every day.
What most people don't realize is that there are exchange markets where you can
potentially profit from the movement of these currencies. Some people decide to buy
and hold a coin for long term if the have a higher price in mind whilst others make a
living from the small price swings which classes them as day or short term traders.
One of the great things about trading currencies now is that you no longer have to
be a big money manager to trade this market; traders and investors like you and
i can trade safely.
Key points to know before you trade or buy
Important: Beware of the risks involved
What is a an Exchange?
Short term & Long term investments
Investing short term so you aim to profit within a few months to a year as the value
rises. Potentially using the profits to invest back in with higher capital. Advantages of
short terms will require more time to be committed watching markets etc and selling
when prices are high followed by buying back again when prices lower
Long term involves more initial research, instead were buying with the intention to
hold for a few years before selling as we like to benefit from the maximum potential an
investment has to offer. Bear in mind the time you spend researching will help you
decide if an investment is for the long or short term. You are in control so it’s wise to sell
when prices are high regardless of long or short term.
Investment portfolio preparation
Remember investing is not to be rushed allowing our emotions to dictate our
actions. Keeping a clear mind is essential. An ounce of prevention is worth more
then a pound of cure, so take your time writing out a plan for how much you
can afford, how it will be divided etc. Spread your investment over different coins
and over time to benefit from small price dips here and there
In currency trading, traders often use technical language that can be intimidating
when you're just starting out. Market caps, Supply etc. As you familiarize
yourself with the language, you'll find that your understanding as whole will improve.
Bear in mind when analyzing graphs and trends we refer back to experience
gained through forex trading. We can break it down into two basic steps for now
To develop a strategy, investors use a variety of tools and techniques. Some perform
technical Analysis by using Charts to study the market. This technique assumes that
past market movements will help predict future activity. The effectiveness of
Technical Analysis makes it a very popular trading technique.
Or we can use Fundamental Analysis for a trading strategy, following the
effects of economic, social and political events on prices. Reading
specialized News can help keep you in touch with the community to find
out how events might affect currency prices.
Combining both techniques along with various others allows you to cover the
market from most angles improving chances of a profit.
RESEARCH
There are risks involved with Crypto currency as the technology is still in its
Early days. Keep in mind the Forex exchange for trading currencies and commodities
we use every day has a market cap of over 2 Trillion dollars. With Bitcoins only at
around 500 Billion their is still allot of room for growth.
As mentioned different countries will adopt the technology for a variety of uses and
at different rates due to the simple fact each country is experiencing different levels
of growth. So as some countries set to temporarily ban Crypto Currency we can expect
the price to be effected. However by putting in the time and effort to research opposed
to taking some ones words for it and finding out for yourself we can be make more
accurate decisions and at the same time be assured that such events are not for
certain and only for short periods
.
Every trader makes mistakes, so it's a good idea to familiarize yourself with a
trading environment before you invest your money. To improve your trading
skills, try trading with only small amount and rest assured as time progresses
so will your knowledge.
Know the Language
Technical & Fundamental Analysis
Know the Risks
Practice makes perfect!
Research your investment
Justify your investment by carrying out research into the community via social media pages, forums and perhaps joining to share you own thoughts and ask
a few of questions of your own after all it is your money invested into the project giving you the right to inquire. Analyze the market your investing in to see if
their is room to grow, any similar products and how competitors are performing if any. Will your investment actually solve an issue in a realistic manner.
Many projects are slightly too ambitious making your risks higher however rewards equally higher too.
Some links below which you will find usefull and worth sharing:
www.bitcointalk.org / www.reddit.com / www.youtube.com / www.coinmarketcap.com / www.steem.com
- Low market cap means projects have much more room to grow
- Higher market caps are likely more popular so returns could be less however safer.
- Investments which will solve real world problems are worth keeping an eye on
- ICO - Initial coin offerings are when projects are still crowd funding.
Another tip worth sharing is how dates such as Announcements, New year, End of tax
years, Holidays and so on around the globe can influence prices as traders cash out
to spend their earnings allowing a good opportunity for others to invest. For example
the Chinese new year commonly known for dropping prices significantly as well as
other key dates through out the year.
Investing can be time consuming however rest assured as time goes the rewards
will be greater and is really that simple. We receive how much we put in.
Similar to anything else in life we invest our time or energy in, all of which
needs practice and most of all patience.
When trying to understand the value of a coin we look at few things. Some listed:
- Market cap
-Total supply
- Circulating supply
Also the community, market etc mentioned in previous topics.
The reason Bitcoins price is estimated to reach high numbers is due to its overall
supply of 21 Million. No more can be made meaning as time goes eventually the
supply will decrease as demand increases raising the value.
The market cap is calculated based on the last price a coin was sold for multiplied
by its supply and can be misleading and should not be used alone when investing.
So if the total number of coins for example = 5 and were bought at $1 the market cap
will be $5. If someone was to sell a coin for $2 the market cap becomes $10 now.
So we must use different figures and data when trying to decide if an investment is
right and if the time to buy is right buy determining if the price is accurate first
before calculating if their is room to grow and so on.
As well as social media etc if for example the investment your planning to get into
seems high. Researching will allow you to see if the price is due to natural growth or
attention otherwise known as ‘Hype’ which in this day and age can be fueled by
a famous person mentioning a coins name increasing it’s awareness and over all
price. However if a price is raised by hype we can expect it to settle down after.
Still profitable however serious investors are after project development.
TRADING
Trading Tips
SMA - Simple Moving Average
Important Dates and Key points
Understand current value of an investment
Moving averages are without a doubt the most popular trading tools and indicators
What is a 'Simple Moving Average - SMA' and learned on Forex mainly.
A simple moving average (SMA) is an arithmetic moving average calculated by
adding the closing price of the security for a number of time periods and then
dividing this total by the number of time periods.
9 or 10 period: Very popular and extremely fast moving. Often used as a directional
filter (more later)
21 period: Medium-term and the most accurate moving average. Good when it
comes to riding trends
50 period: Long-term moving average and best suited for identifying the longer term
direction
The above refers to number of days from the current day when looking at a chart for
a particular coin to try to determine the movement.
Bear in mind these tips have been acquired though trading with forex where trends
are more predictable and can be followed easier.
As mentioned in previous topics, Crypto Currency is new and growing with
many new projects and at the same time not enough main stream media coverage
as marketing essentially is becoming ore competitive. Finding patterns will not be
as easy. Predicting the price movement for now is a challenge even for the most
experienced investors in Crypto Currency. It simply means it’s up to us to find the
information were after our selves via the web, networking, events, socializing and
applying it with our experience or knowledge to the market being invested in to
decide how much and how long to invest for.
Set stop losses, Buy Orders. Take a look at Discover page to learn more tips.
View Tutorials Page For A Guide Around Exchanges & How To Place A Trade
PURCHASING
Where and How to buy guide
VISIT HOME PAGE FOR FULL LIST
What is a digital wallet ? Visit Wallets Page For More
We have online wallets and offline wallets allowing us to send, receive and monitor currency.
Visit the wallets and tutorials page to purchase your wallet, setup and learn about storage. Get yours today.
Each coin has it’s own secure wallet which can be found on their main website and is advised
to use if buying for long term as this keeps you in full control. If trading it’s easier to store on the exchange
and simply to transfer offline when not trading for safety reasons.
A wallets is basically an I.D consisting of random numbers and letters. Each wallet has it’s own login page
supplied by the providers main website unless a desktop version is available.
The Wallet also provides the user with a Password otherwise known as a key which consists of numbers
1-9 and letters A-Z. The password or key is roughly 0-64 values long including both numbers and letters.
Each one is unique and should be stored safely. The code should not be shared with anyone you don’t know
or left stored on any devices connected to the Internet
The wallet I.D allow us to deposit into the wallet and the password will be required each time we try to access
the wallet. Remember to keep your wallet I.D and Key very safe. if you loose these we will loose access.
A paper wallet is safe and used by millions. This is where we write down or print the key manually
entering when need be. Advantages of storing your key on paper makes it almost impossible to be
compromised
During the course of 2018 we will see many new products available on the market allowing us to store multiple
coins under one wallet for convenience increasing the overall usability of such currencies.
We also have USB devices specifically created to store multiple coins as most wallets will only hold their own
coins. The Nano Ledger is one of a few products allowing us to store more the one coin offline on USB safely.
Please visit our page on wallets explaining more on storage and security.
Withdrawals and VAT?
Simply withdraw funds back to the wallet where funds where deposited from such as Coinbase.
When you decide to withdraw funds and convert your currency to USD / GBP / EUR / JPY / CHF / RUB etc
we are likely to owe VAT on the amount. Which will be either regular Vat or CGT (Corporate Gains Tax)
Each Tax, Vat law varies with countries. In U.K trading maybe classed as speculative such as gambling, day trading
or investing. All of which require different Vat levels. The HMRC in U.K assesses each individual case. Please
look into regulations for your area. Visit HMRC page on Crypto currency here.
-Easy, straight forward. Most popular
-Purchase using debit or credit card
-No minimum requirements to buy
-Coinbase is a broker and takes a fee
-Fees charged when buying, selling and transferring
-Has it’s own secure online wallet
-used my millions of users around the world
-Can buy up to 4 Digital currencies at the moment
-Can be transferred to exchanges from here
-No fees, Directly buying from buyers.
-Purchase using Credit / Debit card, Cash plus more
-Minimum buy requirements depending on the seller
-How Bitcoin was intended to be sold and purchased
-More risk involved so research sellers
-Buying from verified sellers with good feedback etc
-Has it’s own secure online wallet
-used my millions of users around the world
-Can be transferred to exchanges from here
VISIT CRYPTONIX HOMEPAGE, REGISTER WITH MORE WORLD LEADING BROKERS & EXCHANGES
I’VE ALSO CREATED TUTORIALS TO GUIDE YOU THROUGH.
Similar to trading any other commodity using forex exchanges
brokers etc. crypto currency trading refers to the purchasing
and selling of various currencies available. Many people are
day traders and take advantage of the daily price swings
essentially earning a living from day trading instead of
investing for a long term gain. Their are many avenues to
generating an income by simply trading.
Create an account at one of the reliable and safe crypto
currency brokers, listed on our website.
We can also purchase goods using crypto currency. Big stores
in the U.S like Target, Walmart, Nike accept this electronic
money. Additionally, plenty of online stores take Bitcoins for
their products and services as well as the businesses listed
below and the number is only growing as this is typed. If you
have any questions please feel free to get in touch via our
facebook page
A good question asked, Is whether it’s legal to buy and make
use of crypto currencies? When it comes to the legality every
government has their own regulations to Bitcoin. Different
countries deal with it differently. For instance, in the early
months of 2017, Japan made Bitcoin a legal payment
method and was the first country to legalize its use.
Keep in mind countries are all at different stages of their
economic and overall development which simply means
whilst it may not suit a particular Nation now the future is
still open as as once right infrastructure is in place such as
in developing nations it will allow the technology to be used
more easily
This move can influence other nations. Additionally,
Russian officials are taking measures to adopt Bitcoin as a
legal payment method. Crypto currency is not regulated by
a central bank, the price is based on its supply and demand,
similar to the price of gold or any other currency
Bitcoin is the world's first truly decentralized digital currency
It was implemented in early 2009 and has since become
a wide spread crypto currency with an almost 500 billion
dollar market cap and constantly growing.
Bitcoin is a digital or virtual currency which has many uses
making it very attractive to both investors and users. From
paying for goods as well as services.
It works on a technology called Block chain. More about
Block chain technology to be added soon. There are a wide
range of crypto currencies in the market, such as Bitcoin
Ethereum, Dash, Litecoin, etc.
Bitcoin is a digital currency which can be used everyday and
is available to use online. Block chain at the same time opens
many doors for other services to incorporate block chain into
their business. From decentralizing storage, improving user
experience and much more
What is Bitcoin ?
Is it Legal ?
How do we trade ?
BITCOIN
Tron is very interesting and complex block chain based decentralized protocol which aims to construct a world wide free content
entertainment center. This will give creators full control over their content. A decentralized version of the online media we use today. Tron
has 3 tokens called Tronix(TRX) which can be traded with and is required to access their system to buy and sell content. Tron Power where
holders of Tron commit to having theirs coins held in exchange for Tron Power. This also gives holders voting rights as well as other privileges
towards the Tron ecosystem. The Tron 20 token is interesting since it allows content creators to issue their own tokens. This will solve high
fees creators currently play for images, video etc content online, censorship and more.
Released - September 2017
Trading Name - TRX
Author - Justin Sun
Tron
Cardano is a platform used for running the Ada Crytocurrency and smart contracts. Led by co founder of Bitshares, Ethereum and Ethereum
classic. Run on a proof of stake algorithm which makes it very cost efficient compared to other block chain platforms. Ada Crypto currency
operates on its own blockchain called Cardano settlement layer CSL. CSL is the accounting and transaction layer. A second layer called
Cardano Computation Layer CCL will support smart contracts and decentralised apps. Offers fast transaction, speeds, reliablity and
quantum resistance computing. More advanced then other coins however in the development stages yet.
Released - September 2017
Trading Name - ADA
Author - IOHK Input Outut Hong Kong - Block chain development firm
Cardano
Tether is issued on the Bitcoin block chain through the omni layer protocol. Tether has one dollar backed for every tether coin in a reserve.
It is tied to the U.S Dollar and so remains at the same value as a Dollar. Used by many traders and investors to hold funds temporarily through
market fluctuations keeping their value, investing back into the market at lower rates. Tether has had allot of attention for the wrong reason
due to various claims. Similar coins to Tether are available.
Released - July 2014
Trading Name - USDT
Author - Brock Pierce - Santa Monica based startup company
Tether
Iota is a platform which doesn't use miners or blocks. Based of a mathematical concept, DAG Directed Acylic Graph, called a Tangle.
Due to growth of the internet of things (IOT) a micro payment system has been demanded by users. Bitcoin was set to take this place
however must solve it’s issues with fees plus how miners and users are required in order to function. The tangle eliminates all of this.
Tanlge has no transaction fees and the more it use used the faster it becomes making it great for scaling. User can store data on the
Tangle as well as transfer value without fees. Quantum resistant and in it's early stage of development. As the Internet of things
increase we can expect such projects to gain attention.
Released - 2015
Trading Name - USDT
Author - David Sontesbo, Dominik Schiener, Serguei Popov and Sergey Ivancheglo - Berlin based IOTA foundation
IOTA
Vechain is a comany using smart chips on a block chain platform focusing on supply management, fiancial services and smart contracts.
First coin to partner with the Chinese government. It has partnered with companies in logistics, agriculture, luxury good, foods / drugs
and more. Also working on creating their own block chain instead of using the Ethereum block chain. Vechain has a second token called
VeThor Token otherwise known as the Thor token. Thor token is used to pay for applications and transactions on the block chain, used
by companies etc. Their smart chip and block chain relationship allows complete tracking of goods. The smart chip records environment
details, geographic position and much more. A company with many established partners already.
Released - June 2015
Trading Name - VET
Author - Vechain team led by Sunny Lu - Started in Singapore
VeChain
EOS is a block chain platform which for decentralized applications DAPPS. The idea for EOS is to basically provide best of best of both worlds.
The security of Bitcoin and suport of Ethereum. Aims for a Decentralized operating system supporting industrial scale applications focusing
on removing transaction fees and introduce millions of transactions per second. They will also offer many other services such as user
authentication, cloud storage, and server hosting
Released - July 2017
Trading Name - EOS
Author - Developed by a private company - Block One
EOS
Zcash is a crypto currency aimed at providing more privacy compared to other coins using the cryptography protocol. Payments on the
block chain are publicly recorded however users have an optional privacy feature so users can conceal information on transactions such
as senders address, amount etc. A selective disclosure option is available which can be used for auditing reasons. It has a fixed supply
similar to Bitcoin of 21 million.
Released - October 2016
Trading Name - ZEC
Author - Zooko Wilcox-O'Hearn
Zcash
Lisk is open source crypto currency on a decentralized platform. Allows developers especially with java script experience to build, share and
manage applications on it’s network. It uses a side chain created for DAPPS developed and in return the network will not effect the main chain.
It’s plan is to solve scalability issues some coins are experiencing. Lisk uses a DPoS (Delegated-Proof-of-Stake) algorithm first used in the
development of the exchange platform Bitshares. Currently in development stage.
Released - May 2016
Trading Name - LSK
Author - Max Kordek & Oliver Beddows - Switzerland
LISK
Icon is building one of the largest decentralized networks in the world where anyone can connect to any block chain. These block chains can
interact with each other via smart contracts The plan is in the future where each community can connect to a block chain building a single
ecosystem where users share services from financial, security, insurance, health care, educational, commerce and much more. They will
essentially transact on a single network. An ambitious plan to unlock the full potential of block chain as well as providing real world use.
Released - September 2017
Trading Name - ICX
Author - Dayli Financial Group - Korean Fintech company from ICON Foundation - Switzerland
ICON
QTUM aim to to create a public block chain with an open source code, using technology from Bitcoin and Ehtereum. It aims to provide the
same use as Bitcoin however with also smart contracts and Decentralized applications DAPP. Think of Ethereum smart contracts on a
block chain system similar to Bitcoin. Due to using similar technology however slightly more advanced it also benefit from an upgrades to
Bitcoin and Ethereum such as the lightning network which will reduce fees, transactions per second increasing overall efficiency. QTUM is
an opponent of Ethereum.
Released - March 2017
Trading Name - QTUM
Author - Patrick Dai - Singapore
QTUM
Bitcoin is the first decentralized digital crypto currency with it’s own payment system. Bitcoins are sent from user to user on the peer-to-peer
network directly, without the need for 3rd party involvement. These transactions are verified by network nodes via cryptography and
recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people using the
name Satoshi Nakamoto and was released as an open-source software
Released - January 2009
Trading Name - BTC
Author - Satoshi Nakamoto
Bitcoin
Ethereum is an open source decentralized platform which runs smart contract applications. The applications work exactly as
programmed with no downtime, censorship, fraud or any 3rd party interference. Works on the proof of work POW
algorithm. Similar coins are Waves, Neo, Cardano to list a few competitors. Fastest growing developer community. Alliances
with companies like Microsoft and Intel to name a few.
Released - July 2015
Trading Name - ETH
Author - Vitalik Buterin - Development funded by online crowd sale
Ethereum
Ripple is a real time gross settlement system RTGS, currrency exchange and remittance network the runs on Ripple. Also called the Ripple
Transaction Protocol RTXP or Ripple Protocol, XRP is being supplied to banks to assist with cross borders transactions. Near instant
transaction times, settlement infrastructure used by banks, They have significant corporate backing and a large team. Used by UBS,
UniCredit and Santander . Founders of ripple control more then 60% of XRP. Similar coins are Stellar Lumens.
Released - 2012
Trading Name - XRP
Authors - Arthur Britto, David Schwartz, Ryan Fugger
Ripple
Litecoin is a peer to peer internet currency that allows instant and almost zero fee transactions to anyone around the world. Currently has
faster transaction times then Bitcoin and can handle more transactions. it also has more coins in circulation. It is open source and not manage
by any authority. Litecoin is similar to Bitcoin. Increasing development, The founder of Coinbase left his role to join Litecoin.
Released - October 2011
Trading Name - LTC
Authors - Charlie Lee
Litecoin
NEM is the first Private and Public block chain combination and a popular Japanese block chain. Written in Jave. Unique Proof of importance
algorithm POI. Allowing users to send payments and messages securely world wide. Built in Reputation system. Recognized by some banks in
Japan. Scalable, number of transactions 3000+ and almost zero fees 0.01%. Similar coins are Stellar Lumens, Ripple and Dash.
Released - March 2015
Trading Name - XEM
Authors - Unknown, Started on Bitcoin talk forum by a member named Utopian Future.
NEM
Dash in an open source Peer to Peer Internet crypto currency that offers instant transactions and private transactions as wells as fungible
tokens. It is a fork of the Bitcoin software. Self funded and self governed structure. The name Dash is considered short for Digital cash. Low
transaction fees and almost instant.
Released - January 2014
Trading Name - DASH
Authors - Evan Duffield
Dash
Ethereum Classic is the original ethereum block chain. Creation of smart contracts and custom tokens. It is however much cheaper. Provided
untampered history since its an older. This was due to a hard fork after an incident of missing Ether tokens. To resolve the issue the tokens to
be returned to the rightful owners and security issue had to be addressed. A fork was created, more updated called Ethereum. Renaming the
previous version Ethereum Classic. This preserves the records etc and integrity.
Released - July 2015
Trading Name - ETC
Authors - Ethereum Community
Ethereum Classic
Stellar Lumens is a platform which connects bank payments systems with people. Instant payments as well as customizable payment
infrastructure. An open source protocol supported by the non profit stellar foundation. In 2014 founder of Mt Gox and co founder of
Ripple launched the network system Stellar. No mining available as majority of coins are held by developers.
Released - July 2014
Trading Name - XLM
Authors - Jed McCleb, Joyce Kim
Stellar Lumens
Neo is block chain platform an cryptocurrency designed to build a scalable network of decentralized applications. Based in China, KYC
compliant with ties to many major exchanges. Allows the creation of smart contacts and custom tokens. Considered to the Chinas version
of Ethereum. Similar to Ethereum. Can achieve up to 10000 transactions
Released -Feb 2014
Trading Name - NEO
Authors - Da Hongfei - through his development company Onchain
NEO
Monero is an open source currency which is focusing on privacy and, decentralization. It runs on Windows, MacOS, Android, Linus, iOS
and FreeBSD. Based of the Proof of work POW algorithm. Monero is fungible, meaning it is interchangeable and can be substituted for
another Monero. Different from other public ledger crypto currencies like Bitcoin where users can refuse to accept coins from other
users due to their activity,
Released - April 2014
Trading Name - XMR
Author - Nicolas van Saberhagen
Monero
What Are Crypto Currencies
The Internet was missing a digital payments system which was cost effective and efficient in keeping up with the increasing development of digital content. An algorithm was created using cryptography
to provide a way to govern digital assets. When we visit a website, digital certificates verify each site with encryptions which is similar to how crypto currencies work. Crypto currencies are digital assets
which provide many benefits. They can be used for transferring and verifying of assets, securing financial transaction plus control the creation of additional units. Digital currencies using cryptography
were created and tested since the 1980s and were centralized. Bitcoin was the first decentralized currency. The term Alt Coins can be used to describe the alternative crypto currencies.
With Bitcoin all transactions are available to the public however owners cannot be identified since only the public keys otherwise known as your addresses are visible.
We have alternative currencies in development which provide more anonymous transactions to take place such as Monero, Zcash and Dash to name a few.
Crypto currencies provide a decentralized control compared to the centralized infrastructure. Using a decentralized platform simply means there is no central control or authority as the operational
and other requirements are distributed over all of its participants giving no single person, group etc control as well as increasing over all security since no central location is present.
The data gathered whether it be from transactions, purchases are placed on a block chain which is a list of records called blocks linked using cryptography. Once on the block the data cannot be
modified as more blocks are placed in front. A block chain provides security as well as accessibility without the need for a trusted 3rd party or server since it’s all carried out automatically.
Each block typically contains a link to the previous block, Time stamp and transaction data. Miners play the role of validating transactions creating blocks, time stamping all of which are carried
out automatically using mining equipment. Miners compete to solve equations and are rewarded with the currency mined as an incentive to keep mining and provide processing power for the
network. Different mining equipment is available depending on the currency mined. Read our page on mining for more information
Different algorithms have been developed. These define how a currency works and also provide different uses for the technology. Knowing these helps decide when
investing
Crypto currencies are stored on digital wallets. Each wallet has a unique private and public key. The public key is used to receive where the private key is used to access
you wallet and should be kept secure. Visit our wallets page for more information.
How Crypto Currencies Work
ICOs-Initial coin offerings is a way of funding for crypto currencies which is carried out via crowd funding with private funding now also becoming popular due to the demand. These are considered
as early investors. Investors receive tokens in exchange. Some ICOs have minimum buy requirements and accept Bitcoin and Ethereum mostly. A popular way for companies to raise capital without
going through regulatory frame work such as banks, governments. At the same time it makes ICOs very risky and many are considered to be Fraudulent. Generally investors who buy during an ICO
stage receive a coin for much cheaper as a reward for being early investors and so when the coins become available on an exchange to be traded publicly early investors are likely to sell as soon as
tokens are made public for immediate profits buying more once prices lower or not at all. Understanding the market is important.
ICOs
INFORMATION
A Decentralized Network is where trades, transactions occur
directly between users (peer-to-peer) without the need for a 3rd
party to manage. The network is run by many nodes (people) spread
around where allowing anyone to join.Bitcoin is an example, a
decentralised system meaning not one single entity has full control,
no central point. Users are in control, transactions can occurs at any
time or day. Transactions verified using the PoW Algorith to maintain
integrity. Information is available publicly anywhere at anytime.
more secure. Read more on the topic crypto above.
Similar to how we have been keeping records, accounts throughout history, from paper used today, Papyrus to clay tablets a ledger takes this to the next level.
A Ledger is simply a record of accounts also know today as a database. Cryptocurrencies run on 3 main types of networks, centralised, decentralised and distributed ledgers.
worth mentioning how cryptocurrencies can experience a form of centralisation, especially during a projects early years of developement as less users are
on a network allowing few to gain majority holdings followed by more control, however the understanding is with time as demand increases, number of users etc
we see more adoption this will distribute stakes more evenely leaving less room for centralization as well as other concerns
Centralized systems are what we use today. A Network
where the administrative duties are carried out by a 3rd
party or central organisation. For example our medical,
financial, academic information are all stored on centralised
databases. Giving the organisation complete control. When
we make a payment online a 3rd party such as a bank must
verify transactions as well as manage data. Restricts who can
make changes and access. Decentralised systems aim to elminate
this through algorithms, reducing costs increasing security and more.
Read through my website, Visit the Wallet, Mining Pages To Understand How It All Fits Together
Distributed systems are where transactions, contracts or
information is stored in a decntralized way across different
locations and people without requiring a central authority.
Each Node, participant keeps a record and information is
is stored on permenant database. Decentrlized and distributed
ledgers are harder to hack or attack since all the copies have to
be attacked silmutanously to work, Less central control, overall
easier to access plus more. This system can help manage our legal
documents, licenses and more effeciently.
Used by Bitcoin, Ethereum, Monero, Litecoin, Zcash and
many other crypto currencies.
Proof of work is a function or protocol which requires
computational work to provide proof of work in order to
validate transactions and operations. Users provide proof
or validation by calculating many hashing operations to
receive with the requested services. The process only
takes a few seconds. Please read our mining page for
more information on how it all fits together.
Created in 1993 by Cynthia Dwork and Moni Naor to
prevent network attacks from Spam and DoS (Denial of
Service) by requiring proof from the CPU. Developed
further in 1997 by Adam Back so users are now
required to solve Hashing equations for proof.
PoW - Proof Of Work
Used by NXT, Peercoin, Ethereum is on its way to
becoming PoS.
Proof of stake is where miners can validate blocks
depending on how many coins they hold which simply
means they receive more mining power. Proof of stake
is more secure since with proof of work it’s possible for
miner to gain 51% share of computational power and
perform an attack on the system, with proof of stake
someone would have to hold over 51% of total coins
which is unlikely to happen. Coins have to be locked
into a deposit to participate in the operational
requirements. Proof of stake also is cheaper in running
costs. Less electricity and Computer hardware. With
PoW users have to use their CPU / GPU power to mine
and solve hashing equations which consumes electricity
and resources. With PoS miners validate blocks
depending on amounts they own reducing running costs
significantly. Created 2012, By Sunny King & Scott Nadal.
PoS - Proof Of Stake
Used and Developed by NEO coin.
Delegated Byzantine fault tolerance - dBFT
dBFT is proposed as an alternative to PoS and PoW. A
block chain ecosystem is made of multiple users, node
or applications. Since there is no central authority
transactions need to be approved and verified accurately
and timely. The dBFT algorithm has two types of operators
or nodes in its block chain. Users who buy and trade are
known as ordinary nodes and consensus nodes or
bookkeepers who take part in block validation and voting
similar to miners in Bitcoin. To become a consensus node
you require a dedicated internet connection and certain
amount of GAS, Neo’s utility token which powers the network.
Bookkeeping nodes are selected through a delegated voting
process. During each verification process one of the node
operators is randomly selected to display its version of the
block chain. If 2/3 of the remaining nodes agree transactions
are approved.
dBFT
Different Types Of Crypto Currencies
These are tokens or coins which provide users with access to
services and products. Since the total coins supply is limited the
value is likely to appreciate over time if the project deliver as
promised and succeeds. Some companies might give the
impression they are utility coins however are really investments
and so will be considered as securities.
Security tokens or coins describe any asset that can be traded.
Coins backed by precious metal, real estate and so on. When
money involved is for investment purposes it is classed
a security.
Equity tokens are part of securities. What makes Equity
different is the token represents ownership of company
assets, debt or stock. Ethereum based smart contracts
are a good example which allow start up to easily issue
stocks or equity tokens via the smart contract
Utilities Tokens
Equity Tokens
Securities Tokens
CRYPTO
How Crypto Currencies Function & Operate
Different types of rules and problem solving operations are used which make the currencies available unique from one another. Also known as algorithms, briefly explained below. They define how a
currency or platform works. Algorithms are essentially automated and control networks with minimal human interaction. Each one has their advantages and disadvantages. Remember miners replace
bank clerks and any 3rd party service where accustomed to and are essential to networks running smoothly. These algorithms decide how miners function, their role and the overall operation of a system.
What Is Cryptocurrency & Blockchain
Cryptocurrencies introduce a new and much needed level of security to our way of lives, an inevitable path. The technology will benefit many industries inlcuding the financial, logistic, academic,
Information, Security plus much more. As you read through my site you will learn how this technology can and will be applied to current systems and infrastructure to make them more effecient,
safe and able to keep up with the times. Cryptocurrencies are a digital cash designed to be quicker, cheaper and more reliable than our current standards. Instead of trusting a 3rd party /
government to create your money, manage storage and transactions. With crypto users transact directly with each other as well as manage their own finances.Since a Middle man isn't
required anymore transactions tend to be very affordable and quick.The term 'Ledger' is used which simply means a database. Learn more about Blockchain on the mining page
Cryptocurrencies use the blockchain technology to store all sorts of information from transactions, balances etc Access to these databases are available to anyone from anywhere at anytime.
We use public keys instead of personal details so anyone viewing the public ledger will not have acces to any personal details. Overall providing accessablity for auditing purposes and
security at the same time, since all the information is recorded on a blockchain and cannot be altered in future. Transactions are secure, permenant and transparent. Creats a trustless system
since the authentication is carried out autonomously over a network.
Blockchain is technology for creating permanent, secure digital recordings that don’t rely on any single person or group. Blockchains can record any information,
though the first example was created to record bitcoin transactions. There are hundreds of blockchains created by many groups to records all sorts of information including art,
medical records, computer information and much more. However we must not confuse a blockchain with a centralised database where all the records are stored and managed
by one group. With blockchain the network requirements are distributed and so a single person or group has no majority control or access.
A smart contract mixes blockchain technology with contracts to make a more efficient and affordable system of doing business. In a smart contract, two people doing
business agree to a trade of good in exchange for money. if the requirements set by both parties of the contract are met it activates delivering what was agreed on. If the
requirements are not met, the contract deactivates.
Similar to when we visit a website a digital certificate beside the website domain verifies the website usually with a green sheild or tick, this is a form
of cryptography, Encrypting information. This method in a way has been further developed and applied to currencies.
PoA - Proof Of Authority
Delivering comparatively fast transactions through a consensus mechanism which verifies transactions based on identity compared to mining used in PoW. A Simple algorithm to grasp, remember using
PoW transactions are verified by miners which can be econmically demanding as well as vulnurable to attack if any miner gains a 51% majority. With PoA-based networks, transactions and blocks are
validated by approved accounts, also known as validators.An automated process which doesn't require constant monitoring. It, however, does require a person to maintian their computer. With PoA,
individuals earn the right to become validators, so there is an incentive to retain a position gained. By attaching a reputation to identity. This is considered more robust than PoS Proof Of Stake where
transactions are verified depending on stakes or how many coins/tokens held.Meanwhile, PoW requires an enormous amount of computing power, which in itself lowers incentive.
PoA however tends to lean towards being more centralised over time.
DAGs
DAGs are a form of consensus that doesn’t use the blockchain data structure and handles transactions.
Theoretically infinite transactions per second, however DAGs have strengths and weaknesses just like any other consensus algorithm.
Tangle
Tangle is the DAG consensus algorithm used by Iota. Essentially a string of individual transactions that are linked to each other and stored through a decentralized network of node participants. Tangle
does not usr miners, users of the network function as the miners themselves by carrying out small computational Proofs of Work (PoW) for each transaction. Scalability is a challenge many
cryptocurrencies face and tangle aims to solve this. Transactions are faster and the number of individual transactions that the system can process simultaneously is unlimitedThe IOTA Tangle uses the
Winternitz signature which is a hash-based cryptography. Tangle is designed to be scalable operating on the idea where more people who use IOTA and Tangle, the more transactions are referenced,
confirmed. This also means that as more people use it, the confirmation rates and timings improve, Tangle does not use blocks, not requiring addresses etc to be kept in the right order. meanining all
transactions can be stored on multiple devices, various locations, different orders and even seperated or mixed together..
SPECTRE: Serialization of Proof-of-work Events: Confirming Transactions via Recursive Elections, better known as SPECTRE, is a proposed Bitcoin scaling solution that utilizes a combination of PoW
and DAGs to reach scalable consensus. In SPECTRE, the blocks are mined pointing to multiple parents, not just one, so the network could potentially handle multiple blocks per second. Mining a block
pointing to some parent blocks supports those blocks validity.
Hashgraph
Block-Lattice
Spectre
Hashgraph: Hashgraph is a gossip-protocol consensus developed by Leemon Baird. Nodes share their known transactions with other nodes at random so eventually all the transactions are gossiped
around to all of the nodes. Hashgraph is really fast (250,000+ transactions per second) but isn’t resistant to Sybil attacks.
Block-lattice: Nano (formerly Raiblocks) runs with a twist on the blockchain called a Block-lattice. The Block-lattice is a structure where every user (address) gets their own chain that only they can
write to, and everyone holds a copy of all of the chains. Block-lattice is very simple and open to unique attack vectors
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How To Buy Bitcoin, Ethereum & Other Cryptocurrencies
Visit tutorials page for videos on how to start up
Register with a Broker from our
home page, handpicked for you
Using your local currency
Either credit, debit card or cash
Purchase Bitcoin, Ethereum
& Other Cryptocurrencies
How To Buy Alt Coins & Other Cryptocurrencies only available on exchanges.
Keep in mind majority of the other cryptocurrencies are purchased with our Bitcoin & Ethereum
Register with an Exchange from our
home page, handpicked for you
Transfer Bitcoin or Ethereum
From your Broker to an exchange
Select from over 1000
Cryptocurrencies to purchase
How To Store, Keep Bitcoin and Cryptocurrency secure
Transfer your Bitcoin or Crypto from
the Broker or Exchange to an offline wallet
Select your wallet type
Visit the wallets page for more
Store your Key, Pass phrase &
any other information safely
When transferring crypto between Brokers, Exchanges & Wallets. We use the send option and simply enter the
receiving address for your selected currency which is located on every Broker, Exchange or Wallet
Brokers only support a few out of the 1000’s of currencies available in which case coins will need to be
transfered to an offline or online wallet
Each coin has it’s own free online wallet available for download from their main website.
If deciding to hold long term it is advised to purchase an offline wallet for cold storage as anything online or
connected to the Internet is vulnerable and can be compromised in some way, offline eliminates every possibility.
VISIT THE WALLETS PAGE FOR A SELECTION OF THE MOST SECURE, RELIABLE WALLETS ON THE MARKET TODAY
+ MUCH MORE USEFUL INFORMATION
Key Words - Dictionary
Algorithm
An algorithm is a sequence of instruction put in place to
perform a task or solve a problem
Air Drop
A process by where coins a distributed freely on a first
come first serve basis, encouraging use and awareness
Alt Coin
An Alt coin is an alternative crypto currency also known
as an alternative coin. With over 1000s to select from
Bear Trap
When investors try to profit from the price moving down
Causing temporary quick price drops catching others out
Breaking
Breaking is the process by which you expose a system
information which is hidden and secure by infiltrating
Bot
Bot is short for ‘Robot’ which is simply a computer program
that automates the investing process of an asset for you
Bull Trap
When investors try to profit from the price moving up and
Cause a temporary quick price jump catching others out
Consensus
When majority agree on a similar thing we reach a
consensus. The general agreement or understanding
Cold Storage
Cold storage is simply digital data stored away from any
connection to the Internet, computer or any network
Cryptojacking
Is when someones computer has been used without their
permission to secretly mine cryptocurrency
Cryptography
Cryptography is the process of protecting information and
making it unreadable thus protecting the data
Centralized
Centralized is when a system or organization is controlled
by once person or a group of people, a company, Group
Capital
Capital in economics is when you have anything of value
which strengthens your position towards making more wealth
DApp
DApp is a decentralized software applications running on
a network of computers which are public
Double Spending
Double spending is a form of deceit where someone tries to
spend the same token twice, Creating identical transactions
DEX
Is a decentralized exchange. This where users trade and
exchange directly without any 3rd party involvement
Digital Signature
Is a certificate based of a digital I.D. Using cryptography to
authenticate document contents and senders I.D
Decentralized
Decentralized is when a system or activities of an organization
are controlled by distributing across away from central point
Dip
A dip is caused when a crypto currency, stock or asset drops
in price
Escrow
When a 3rd party is involved in a transaction or trade and holds
valuable whether money or goods to reduce any risks
Exchange
An algorithm is a sequence of instruction put in place to
perform a task or solve a problem
Encryption
A secure and efficient process by where information is
made unreadable and hidden
ERC-20
ERC-20 is when a crypto has been built using the technology
behind Ethereum as it’s foundation
Equity Token
Equity token is when an investor own a digital asset which
gives them percentage of ownership into the company
Fork
A fork is similar to an update. A fork is when the blockchain
splits into two path. A hard for when two seperate coins emerge
Fiat Currency
was introduced as an alternative to commodity & representative
money. Government issued, backed by trust and promises
.
OTC - Over The Counter
OTC is When a trade takes place in person similar to
an ATM or payment machine not on an exchange.
Hash Rate
Hash or Hash power is measure in h/s. It is the speed at
which a computer is completing an operation
Hyper Ledger
Started by the linux foundation and is working towards
expanding, advancing cross industry blockchain use.
HODL
HODL which is short for ‘HOLD’ which in this term mean
Hold On For Dear Life. Investors who hold and never sell.
KYC
KYC also known as Know Your Customer is a customer
authentication process required for financial organization
Limit Order
A limit order is when an order is placed to purchase or sell
an asset when it reaches a particular price, normally for profit
Leverage
Leverage gives us more trading value using margins. Simply put
it’s when we use borrowed money to purchase an asset.
Margin Trading
This is when we use money borrowed from the trading platform
to add more value to our investment, leveraging from it.
Masternode
Someone who has a high stake in a cryptocurrency giving them
privileges of holding a full copy of the blockchain. Acts like a server
Market Capitalization
Market cap is how much of a market an asset has. Used to
calculate it’s value. Multiply total number of coins x recent price
Peer To Peer
When resources or files are shared between two computers
directly on a network without a 3rd party server in between.
Pump & Dump
Is when an asset is illegally manipulated inflating the price in
order to sell to others and dump.
Road Map
When an organization sets out it goals and targets in
chronological order for everyone to view. It’s long term plans etc
ROI
Return on investment is when we calculate the percentage of
return from an investment, comparing to the price payed
Shorting
When a 3rd party is involved in a transaction or trade and holds
valuable whether money or goods to reduce any risks
Soft Cap
When raising money through an ICO soft caps are set to make
sure a minimum amount is raised otherwise will not go ahead
Utility Token
Utility token is a digital investment, where an investor as special
access to a product or service
Token
A digital way to represent value, services or a product. We have
3 types, security, equity, utility tokens.
Volume
The amount or quantity of an asset purchased between a period
of time.
We have buy and sell volumes.
Wallet
A digital wallet is simply a software connected to a blockchain
allowing users to send, receive and store currency
Whitepaper
A document which explains a companies goals, targets etc used
as marketing to convince investors of it’s business model
Whitelist
The opposite of blacklisting, users are given privileges, rewards
A list of participants who maybe joined early or trust worthy.
Zero Confirmation
When a transaction has not been recorded on a blockchain and
the, for example a seller delivering what was sold without payment
Lightning Network
Using Bitcoins technology lightning network aims to provide
almost instant transaction time as well as low fees
ICO - Initial Coin Offering
An ICO is when a coin allows the public to invest offering only
a limited amount of coin for a limited time.
Open Source
Open source is when a particular technology is made available
for everyone to share, adjust and contribute. Hence the name
A smart contract uses block chain technology with contracts to improve the efficiency of doing business. Allows credible transactions
to be carried out without the needing a 3rd party. Which will effect how many businesses operate from accountants solicitors, lawyers,
merchants any one dealing with invoices, contracts etc
You can use smart contracts for different situations ranging from financial derivatives to insurance premiums, credit enforcement,
breach contracts, property law, legal processes, crowd funding, financial services, plus much more.
Remember block chain is distributed amongst many individuals where as if it’s controlled or distributed over a small group usually
and organization it’s regarded as a database. Read through the topics, simplified for you to figure out how it all works. Not much to
it and simply a matter of familiarizing with.
Ethereum is similar to blockchain however works differently. Ethereum a distributed blockchain network. Bitcoin Uses an element of
blockchain to carry out peer to peer electronic currency transactions which can be tracked, recorded etc Ethereum on the other hands
focusing on being an open source software platform based on blockchain. Ethereum a blockchain based decentralized platform
where decentralized applications DApps can be built. Allowing developers to build anything they want which will change the way we
see Apps in future.
A smart contract simply works when to people wish to carry out a transaction. Specific requirements are set in place by the people
interacting. It executes the task once specific conditions are met. The contracts cannot be altered once set, going onto a record which
can be accessed from anywhere at any time. Perfect for security.
For example, lets say Cryptonix offers a course online where payment is required in exchange, using smart contracts to carry out the
process. Payment is made in cryptocurrency. The contract agreement is for me to deliver the course in order to receive payment. Payment
is held in an escrow or virtual vault using the virtual smart contract till it confirms the course has been delivered after which the funds are
released. Similar to how Paypal and other financial bodies hold funds temporarily to protect both parties however this is automated.
A very straight forward process. Contracts can be customized completely for example a holding goods, funds till a set date even if
requirements are met early. In the event of the contract not being fulfilled, maybe a missed date etc the transactions are automatically
reversed, refunded etc The funds once funds are received.
Ethereum is Currently Proof of work with plants to move over to proof of stake with the launch of Casper in future. Making it a hybrid of
PoW and PoS. Benefiting from greater security and less energy consumption. Miners within the Ethereum network Earn Ether which is
also used by application developers on the Ehtereum network whether for payments, fees etc Ether works the same way to compensate
miners and create incentive similar to bitcoins however due to limitless amount of Dapps which be can be developed on it’s platfrom using
Ether makes it promising in terms of investments.
Visit my Cryptonix Facebook page for interesting news on Ethereum and how Jp Morgan has a coin called Quarum which is a fork of
Ethereum similar to how Bitcoin Cash is a copy of Bitcoin. Remember the codes for these platforms are open source meaning anyone,
you or i can simply duplicate to create our own similar blockchain.
What Is Ethereum, How Will It Help?
How Does Ethereum Work
Many cryptocurrencies, including Bitcoin experience an event call ‘ Halving’ Every few years. Since cryptocurrencies have a fixed
supply and achieve this by halving the mining rewards at regular intervals. This is amount miners are payed each time a block is mined.
This reduces the distribution of coins essentially affecting supply by reducing the amount of coins in circulation and increasing
demand for the cryptocurrency overall as supply is shorter.
Bitcoin halving is when the the block reward miner receive for mining a bitcoin is halved. Currently at 12.5 and will move to 6.5 soon.
This miners earn less.
The science behind it is simple..Bitcoin has a limited supply of 21 million which means that it is not possible
to provide mining rewards for unlimited time. Every 210,000 blocks in the blockchain, at 10 minutes per block it equals to every 4 years.
With regards to bitcoin, the mining reward is cut in half. This is coded into the distributed software known as a node which is used by all
miners and so already built in and factored.
Visit the mining page to learn how mining wors ind depth.
bitcoin is similar to a commodity like gold where as time goes it becomes more difficult to mine, essentially halving extends bitcoins
system since there is a limited supply similar to gold. Whilst increasing it's price as the volume reduce over time. Imagine if the block
reward was at 50 Bitcoins similar to many years ago, bitcoin would run out sooner. This also goes hand in hand with mining technology
taking into account rate it which tech develops since the equipment used now days also has to match the difficulty to an extent.
Bitcoin
Mon, 11 May 2020 18:38
621596
630000
Litecoin
Sun, 02 Jul 2023 23:28
1805596
2500000
Bitcoin Cash
Thu, 06 Aug 2020 03:08
609161
630000
Bitcoin SV
Fri, 10 Apr 2020 02:38
626156
630000
Zcash
Wed, 18 Nov 2020 12:03
759452
1046400
Bitcoin Gold
Tue, 06 Jul 2021 10:18
561022
630000
Ravencoin
Sat, 08 Jan 2022 20:32
1141766
2100000
Bitcoin Diamond
Wed, 05 Aug 2020 12:58
609246
630000
Bytom
Fri, 01 Apr 2022 07:13
409218
840000
Monacoin
Thu, 31 Mar 2022 02:46
1385568
2102400
Verge
Thu, 25 Jun 2020 23:41
3901714
4200000
Vertcoin
Sun, 13 Feb 2022 21:36
1275945
1680000
Blockstamp
Sat, 15 Aug 2020 06:01
828477
1050000
Einsteinium
Mon, 11 Nov 2024 18:40
2803158
5256000
Current Block
Halving Block
Halving Date
Cryptocurrency
Cryptocurrency Halving Dates
Mining Cryptocurrencies Summarized
cryptocurrency mining is a process which involved various types of transactions which need to be verified before adding to
a digital ledger. Every time a transaction is made a miner is responsible for the authenticity of the information before updating
the blockchain. Which involves competing with other mines to solve a mathematical problems using cryptography, a form of
encryption similar to how website are automatically verified in your search bar above with digital certificates, this process using
cryptography as well. The first miner to solve the code receives the reward.
Mining cryptocurrencies has grown allot in popularity over the passed years favoring those who adopted early as the mining
difficulties were much easier with less competition, more volume of coins available and so on. When mining a certain coin becomes
more competitive difficulty to mine increases to maintain flow which requires upgrading equipment and further investment or
switching over to another profitable coin. In some cases we are better of buying the coins we are interested in directly through an
exchange since it's cheaper compared to mining.. Bitcoins is not recommended as a good choice for beginning to who wish to
start mining, especially if on a smaller scale, perhaps as hobbyist interested in learning how it works. The same equipment can
be used to mine other profitable coins. The current up- front investment, maintenance costs doesn't make it profitable for anyone
using consumer level hardware. Over time Bitcoin mining become more reserved for large scale operations .
Mining accomplishes these three things in a nutshell
Providing bookkeeping services to a coins network. Since mining is automated it's essentially 24/7 computer accounting and verifying
transactions. As a miner you get paid a small reward for the accounting services by receiving fractions of a coin every few days which
over time accumulate and due to price swings can prove to be profitable. Same time paying miners gives incentive to keep providing
the support and keep the system operating Which is why if we see event whether natural, or political effecting mining it in turn has
an effect on cryptocurrency prices. As a miner you will want to keep your costs low from electricity to hardware.
Visit the mining page to learn more interesting information along with examples to help you understand better
Dynamics Of Being An Investor
‘ Investing In Yourself ‘
lets learn more about the dynamics of investing and what it roughly requires in order to be a successful investor. Each of us
individuals are unique with different personal traits which effect our behavior when it comes to investing.
Same time learning the dynamics is a very broad topic which i will try to simplify for you. Covered in more detail as you read
through my web site.
Money is great tool if used correctly. The ability for money to create more money which isn't rocket science and available
for anyone with even the basic resources to access.
Financial planning is important for everyone and a must since this goes way beyond savings. It is truly an investment in
ourselves from our lifestyle to behavior
The need for saving has increased over the years as more jobs are privatized some with less securities in place find
themselves having to save for un for seen circumstances. With advancements in medicine and overall health our
lifespan has also increased however the age for retirement remains the same coupled with hight cost of living means
we have to save more in order to live a comfortable life after retirement. With inflation worth considering saving should
be every individuals priority as the value decreases while demand increases.
Hence why we as investors need to look and plan ahead.
Saving money is no longer a good enough option, almost looses value. Forcing people to move from saving to investing.
What does investment mean? it's and activity which is committing our resources to with
the hopes over time benefits will be acquire through profits or gains of some sort. Commitment of funds and time
as well.
As investors similar to how we spread our investments we also don;t rely on one
income in life. Investment has almost become necessary.
An individuals investment behavior is influenced by many things. Everyone has their own risk taking ability, requirements,
understanding of their strengths, areas to work on and so on. This is where personal investment comes into the equation.
‘ Knowledge is power ‘
VISIT THE DISCOVER PAGE TO FIND OUT MORE VALUABLE INFORMATION ON THE DYNAMICS OF INVESTING
What Is Blockchain & It’s Benefits
What Is Cryptocurrency
What Is Ethereum
Blockchain is a ledger, a growing list of records that are linked together using a form of encryption called cryptography.
The information called blocks are linked on a database the chain.
Blocks store various information from date, time, dollar amount, who is participating. Each block stores a information
also known as a hash which is a unique code similar to an I.D allowing to recognize a block.
Open Ledger - The transactions are publicly accessible by all users
Distributed Ledger - Each user has a copy of the ledger
Advantages:
Accurate, Cost reduction, Secure, private, transparent. Does not require 3rd party intervention, auditable aswell as scalable.
More in detail under topics above, Information & Crypto.
Disadvantages:
Cost of mining can be significant as well as demanding on environment, transactions per second needs improvement,
used for illicit trade an can also e hacked if conditions are right.
Cryptocurrency or otherwise known as crypto currency is simply a digital currency, asset providing a medium of
exchange using cryptography to ensure transactions are carried out securely, effeciently, additional units can created
if required as well as verifying.
Crypto currency is simply the cryptography of blockchain added to a currency.
All cryptocurrency transactions are recorded on a blockchain. Bitcoin was the first blockchain created in 2008.
Since bitcoins release, many other cryptocurrencies have been developed each with their own unique use of the
blockchain. These coins are referred to as Alt Coins or Alternative Coins. A term used often.
Cryptocurrency works on encryption so when a transaction takes place and data is encrypted 2 keys are produced
which are linked together mathematically, one key is required for encrypting and the other to decrypt.
When storing our cryptocurrency we have a public key which is available to use to send, receive etc and our private key
which is the key used to decrypt and access the account.
Cryptocurrencies are decentralized, Learn More about cryptocurrency, dfferent types under the Crypto topic above.
Some cryptocurrencies are built using the same framework as previous currencies and called forks. When using another
cryptocurrency built with open source simply copying the code to create their own similar currency allowing people to
create their own easily.
Ehtereum is a decentralized currency as well as a decentralized open source, public platform meaning anyone can
access and use it. Aimed at developers giving them a place to create decentralized applications. Operating using smart
contracts. Ether is the cryptocurrency on the Ethereum platform given as a reward to miners for mining nodes.
You Can control money and digital currencies, build application anywhere in the world
Similar to how bitcoin is aiming to change the financial way of life with digital currencies and decentralizing currency
Ethereum is working towards changing the internet which is centralized. When we access website, login using
passwords the system verifies the information provided on databases which are help by companies at data centers,
clouds etc which is why some people mention how unsafe their data is if any central organization is compromised.
Ethereum Wishes to distribute all the computational requirements to all the users across the planet via it’s nodes.
A key feature of Ethereum is using smart contract. In a nutshell this is when a transaction automatically executes after
certain conditions have been met. Similar to an escrow and how 3rd party organization temporarily hold funds till they
can verify both parties have completed what was agreed only this is automated. You can imagine for yourself, this will
eventually change how invoices are managed, contracts etc changing many industries from accounting, law, insurance,
finance, health plus much more
Learn the keywords in the Dictionary.
Tax laws for cryptocurrency vary between between different countries, some have been much more open to accept blockchain
whilst others followed suit.
It’s worth looking into your TAX and VAT laws in your area also keeping in mind as the the market grows policies will be
likely be added, refined.
It’s straight forwards depending on income and type of investment they can either be classed as speculative, gambling or investing.
Each have other own TAX requirements which likely falls under Capital Gains Tax otherwise known as CGT. Allot of how you get
taxed depends on your overall incomes and investing behavior
It also worth noting gold can be sued as an alternative when deciding to sell convert profits inot local currency. Instead of
converting directly to your local currency paying tax we can buy gold using crypto through various avenues. Since gold is
Tax free we don’t have to pay. Bear in mind selling the gold for crypto might not be as easy as converting crypto to gold.
As mentioned the market is still growing and as it matures we can expect more avenues to open up for investors or traders to
make purchases with crypto or even directly invest back into other investments. I’m sure things will improve
Links to bitcoin & cryptocurrency tax laws in United Kingdom U.K, America, Switzerland, China, Brazil, Israel, Argentina, Australia
Canada, France, Japan, Italy, Ireland, Sweden, European Union, Finland, Spain, Netherlands, Isle Of Man, Norway, Russia, Malaysia
Hong Kong, India, Cayman Islands, Bahamas, Jamaica, Dominican Republic, South Africa, Kenya, Serbia, Singapore, Germany
Belgium, Czech Republic, Spain + Many more.
TAX laws for cryptocurrency in U.K
Implemented in 2013
Tax on crypto assets for individuals, businesses etc
https://www.gov.uk/government/publications/tax-on-cryptoassets
Tax on crypto assets for individuals only
https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-for-
individuals
Check if you need to pay tax in Great britain, U.K
https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-sell-
cryptoassets
Tax laws for cryptocurrency in America
https://www.irs.gov/businesses/small-businesses-self-employed/virtual-currencies
Tax, Vat & Laws on crypto in:
Switzerland, China, Brazil, Israel, Argentina, Australia Canada, France, Japan, Italy, Ireland, Sweden,
European Union, Finland, Spain, Netherlands, Isle Of Man, Norway, Russia, Malaysia, Hong Kong, India, Cayman Islands, Bahamas,
Jamaica, Dominican Republic, South Africa, Kenya, Serbia, Singapore, Germany, Belgium, Czech Republic, Spain + Many more.
https://www.loc.gov/law/help/cryptocurrency/world-survey.php
Videos Explaining Tax Laws In U.K & Germany
Bitcoin cash is a peer to peer electronic cash similar to Bitcoin due to being a fork of Bitcoin. Find out what a fork is by reading
through the topics above. Started out by the developers and miners of Bitcoin during the early days dout to concerns of bitcoins
scalability. Bitcoin can only process few transactions per second comapred to current methods with can carry out 1000s. Bitcoins
Lightning Technolgoy is suppsoed to address any concerns. Bitcoin cash has faster transaction times and less fees.
Released - July 2017
Trading Name - BCH
Authors - Roger Ver + Member of the older Bitcoin community
Bitcoin Cash
Steem is a crypto currency built around social media and content. Steems objective is to offer hosting for content, social media
platforms aswell as well as storing data. Steem is decentralized and use the Proof Of Stafe PoS protocol with fast transactions and
zero fees, Steem tokens are distributed amongst content creators, we slso have the stable coin steem dollars SBD. So it has it’s own
ecosystem of tokens for content creators and so on. Steem an infaltionary currency with an inflation rate that decreases over time.
Steem blockchain is homt to many DApps, Decentralized apps. The first on called Steemit, a decentralized blogging platform.
Released - March 2016
Trading Name - STEEM
Authors - Ned Scott, Daniel Larimer,
Steem
Hedera Hashgraph is a decentralized public network allowing users to transact, interact and essentially socialise in a secure way.
A distributed ledger technology to make places like the internet safe, reliable and accessible. Using aBFT Algorithm described above
without miner to validate and instead using directed acyclic graphs.
Released - July 2017
Trading Name - HBAR
Authors - Leemon Baird
Steem
0x ( Zero x) is an Ethereum based token allowing developer to build their own decentralized exchanges. An ERC-20 token using
smart contracts to power and create decentralized exchanges DEX. The founder refers to 0x as the ‘ Craigs list for cryptocurrency.
0x upon it’s release, enabled any app or website to accept crypto currency purchases by adding a few simply adding a few lines of
code.
Released - Dec 2018
Trading Name - ZRX
Authors - Will Warren Co founder and CEO
0x
Electroneum os a mobile and smart phone crypto currency aimed at phone users. it allows mining and a wallet all froma smart phone.
Simply download the app and start mining today. it using your Device specifications paying rewards in electroneum. Aimed at users
who don’t understand mining well giving anyone an opportunity to enter as well as those live ing pverty. Smart phone users here are
responsible for operating the blockchain. One of the fastest growing crypt currencies since it’s so easy to use. try it for yourself.
Electroneum uses the Proof of Responsibility PoR protocol making it super secure. Created in United Kingdom.
Released - Sep 2017
Trading Name - ETN
Authors - Richard Ells
Electroneum
Chainlink
Launched by a fintech company called smartcontract. Smarts contracts will change the way many industries work espcially ones
working with any sort of legal agreement from Contracts, invoices, bank payments, documents just to name a few out of many.
Working using the Ethereum platfrom, aiming to the mdidleperson or middleware for communications between blockchain.
A distrinuted oracel network, a software that allows and looks after the connection between a client and an oracel database server.
Chainlink has strong partnerships and a good one to look out for
Released - June 2017
Trading Name - LINK
Authors - Sergey Nazarov as CEO, and Steve Ellis as CTO
Digibyte
Digibyte is a decentralized blockcchain crypto currency. Which aims to be responsible for IOT ( Internet Of Things ), Cyber security
and currency all at the same time. Based on the Bitcoin protocol however with it’s own touch making it different and unique from
bitcoin. Digibyte processes quicker transactions and also uses multiple algorithms compared to other currencies which normally
use one. This offer more routes for miens preventing centralization.
Released - Jan 2014
Trading Name - DGB
Authors - Jared Tate
Waves
Open Source blockchain platform for developing quality DApps. Working similar to crowd funding users can issue tokens for short
periods of time. Waves opened the first decentralized exchange where users can trade with near instant time, zero fees etc
Working on the Leased Proof of Stake LPoW, a modification of the Proof of Stake PoW protocol. Wave also has its own coin or token
which can be traded. Waves coins is required to use their platform. Community token, miner token are other available.
Released - Apr 2016
Trading Name - WAVES
Authors - Alexander Ivanov
Basic Attention
Basic Attention Token is based on the Ethereum platform which powers a marketing software called Brave powered by blockchain.
, essentially an Ad platfrom aimed at the global market. Founded by Brendan Eich who created Java script, co founded Mozilla &
Firefox. A promising project which offers rewards providing incentives for using the platform. Brave is a web browser. This
decentralizes Ad all the way to revenue giving users a share aswell. BAT token is a payment system for their platfrom.
Released - May 2017
Trading Name - BAT
Authors - Brendan Eich
Maker
Maker is a cryptocurrency a governence currency. A utility token which increases in value the more Dai is used. Dai is a stable coin
tied to the U.S Dollar. An Ethereum based blockchain under the Maker project. Plans to create an exchange where margin trading
can be done using the ERC-20 protocol. Ontop of this it will inlucde digital assets which are tied to real goods suchs as gold, currency.
Maker is a very promising project, imagine a the Dai tied to $1 if their was any drop or money lost owed Maker token would step in.
A very intersting project with ambitous goals.
Released - May 2014
Trading Name - MKR
Authors - Founder & CEO Rune Christensen
Aug 18, 2008 - Domain Bitcoin.org is registered
Oct 31, 2008 - Satoshi Nakamoto releases paper
‘ Bitcoin: A peer-to-peer electronics payment system ‘
Feb 03, 2010 - 1st Public Transaction, 2 x Pizzas
purchased from Papa John’s fr 10,000 BTC
Aug 16, 2010 - The first Bitcoin Attack. Network was
hacked, $184 Billion dollar transaction caught eyes.
Jan 15, 2012 - US drama ‘ The Good Wife ‘ Titles
one of its episode “Bitcoin For Dummies”
Jun 20, 2012 - Coinbase broker, Exchange is founded
Mar 19, 2014 - Japan crypto exchange Mt Gox goes
bankrupt, offline forcing investors to loose money.
Aug 04, 2014 - Microsoft allow Bitcoin transactions
for their games platform
Oct 31, 2008 - Coinye crypto ends up being sued by
Kanye’s legal team
Sep 03, 2016 - Uber Argentina accepts bitcoin, Swiss
National Railway, PC software website, Steem follow.
Dec 18, 2016 - Major crypto currencies established,
Bitcoin, Dash, Ethereum, Litecoin, Ripple, Monero
Dec 31, 2016 - Total number of crypto ATMs increase
to 900 by end of the year
Jan 12, 2018 - 50 Cent uses Bitcoin he accepted for an
album sale to get out of bankruptcy
Jan 27, 2018 - Crypto Market value passes $824 Billion
Apr 03, 2018 - Biggest market fall in Crypto, Market
value goes down to $248 Billion
Jun 21, 2018- Paris Hiltons dad sells mansion in
exchange for crypto currency.
Jun 01 2018 - Samsung announce they will be making
mining chips.
EU Government join to enforce crypto
regulations. Key partnerships, Ripples 2018 app
launches with Santander to help with international
transfers of funds
Sep 09, 2018 - Dogecoin reaches new highs, 100%
gain.
Jan 01, 2020 - Crypto Potential is realised as over 60%
of financial experts beleive it is here for good. Partners
with Ethereum, Chainlink. Big developments
2021 - 2022 - Crypto in full swing
Sep 18, 2019 - Major Partnerships with organization
and blockchain being implemented into already
existing infrastructure. ‘
Mar 07, 2017 - Bitcoin more valuable than gold ounce
Apr 20, 2017 - Japan law passes law accepting Bitcoin
as legal payment. Norwegian bank Skandiabanken adds
Bitcoin accounts for investments and payment system
May 12 2017 - Over 1000 cryptocurrencies are listed
on coin market cap
Jun 01 2017 - Crypto Market value passes $100 Billion
Nov 01 2017 - Crypto Market value passes $250 Billion
Dec 16 2017 - Women hires hitman, paying with Bitcoin
Dec 28, 2017 - Crypto Market value passes $500 Billion
Feb 23, 2015 - Ethereum & Other Cryptos launch
Jul 02, 2015 - EU based Bitcoin exchange Bitstamp
is hacked, but trading resumes shortly after
Nov 22, 2015- Virgin Galactic accepts Bitcoin for
space travel
Oct 29, 2013 - First public Bitcoin ATM goes live in
waves coffee shop, Vancouver Canada.
Nov 12, 2012 - A meme turned to crypto. Dogecoin is
launched.‘
Feb 03, 2011 - Competition. Rival litecoin, Swiftcoin
Namecoin are launched
Apr 16 2011 - Bitcoin headlines in Time Magazine.
Online cash bitcoin could challenge banks
Jan 12, 2009 - 1st BTC transaction. Nakamoto
sends programmer, crypto pioneer Hal Finney
10 Bitcoin