8 Crypto Meister

The Cryptocurrency market is exploding!

Get in on the action with CryptoMeister's step-by-step eBook

in Cryptocurrency Trading.

Learn How to Buy & Sell Bitcoin and Altcoins on the

Exchanges, Market Research & Analysis, ICO Investing, Risk
& Money Management & much more
 Tabl
eofCont
ent
s

Chapt
er1:TheTec
hnol
ogy&TheCoi
ns...............................5

Chapt
er2:TheWal
let
s&TheExc
hanges..............................18

Chapt
er3:How t
oTr
adeCr
ypt
ocur
renc
ies............................34

Chapt
er4:Mi
ningCr
ypt
ocur
renc
y...................................40

Chapt
er5:Tr
adi
ngSt
rat
egi
es.......................................46

Chapt
er6:I
CO’
s(I
nit
ialCoi
nOffer
ing)................................56

Chapt
er7:Anal
ysi
s&I
ndi
cat
ors.....................................68

Chapt
er8:Ri
sk&MoneyManagement...............................85
 About CryptoMeister

Learn how to take your cryptocurrency trading

to the next level!

CryptoMeister is a leading cryptocurrency trading and investing

education provider. Our courses have been created by experts with
real-world trading experience for both new traders and those with
previous experience. With our cryptocurrency trading courses, you
too can learn the basics of trading cryptocurrency and can
confidently start trading alone.

Our Cryptocurrency Trading eBook is divided into eight key

chapters. Each easy to follow chapter is further broken up into
several learning sections. Regardless of where you are on your
learning path, CryptoMeister strives to constantly develop the most
comprehensive cryptocurrency trading courses available. We team
up with industry pros, have expert instructors and perform constant
market research to ensure our information is always up to date. We
want to provide an authoritative voice on cryptocurrency trading
that will help to increase the success rate in your trading career.

Cryptocurrency Trading eBook CryptoMeister. io // By Aedan Kelly

 Aboutt
heAut
hor

AedanKel
ly
Pr
ofes
sionalDayTr
ader
Aedan Kel lyis a pr ofes si
onalday
traderwi t
hovers ixyear soft radi ng
experience,witht hreeyear sofc ryp-
tocurrencyt r
adingexper ience.Unt i
l
2014,Aedan wor ked full-t
ime asa
trai
nerf oranHRfir m,s peciali
zingi n
new empl oyee educ ati
on and i nte-
grati
on.Aedanbr ingshi ss ki
ll
sasa
professionaltrainerAND t radert o
CryptoMei st
ert o makeeac hl esson
accessibletoever yt rader–r egar d-
l
es sofexper i
encel evel.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
 Chapt
er1:

TheTec
hnol
ogy&TheCoi
ns

Over
view

Bl
ocks&Bl
ockchai
ns

Bloc ksar epac kagesofdat a.

Thec r
itic
alpar ttoremember
her eisthatt hesebloc kscar
r y
per manent lyr ecorded dat a.
As t ransactions happen,
i
nf ormat ion foreac h one i s
collected,t hen validated by
the net wor k.Eventual l
y,the
dat a will reac h a
predet ermineds i
zeandt hen
combi nedi nt oabloc k.

Asthes ebl ocksarec reat

ed,t heydon’ tconti
nuet oexistaloneand
separ ate.Theybec ome linked wi th ot
herbl oc
ks;thisi swhati s
call
ed a Bl ockchai
n.A bl oc kchai
ni tsel
fisa file,a shar ed publi
c
j
our nalorl edgeroft ransactions,andac tsasahi st
ori
calr ecordof
thoset r
ans acti
ons–f r
om t hefir stblockinthechaintot hel at
est–
continuous lygrowing.Abl ockchainpr ot
ocolrunsonaP2Pnet work
ofcomput ersthatallrunt hepr otocolandholdani denticalcopyof
theledger .Whi l
eiti spublicandt heref
oreeveryonec ani nspecta
blockc hain,nos i
ngleper sonc anc ontr
olit.I
tisc r
yptogr aphi
call
y
securedf rom beingt amper edwi th.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Cr
ypt
ocur
rency

Cryptocurrencyhasbeengi venaf ew names :di

gitaltokensorj ust
tokens,di
gi t
alassets
, digi
talcurrenc y,vi
rtualc ur
renc y,di
git
alcoins,
etc.Ess
ential t
hough,c r
ypt ocurrenc i
esarej ustatypeofdi gi
talasset
usedasamedi um ofexc hange.Theyar eal lstor
edi nabl ockc
hai n,
eachbl oc
kc hainhavingi tsowndi gitalcoin.Theor i
ginalandmos t
known c r
ypt ocurr
enc yisBi tcoi
n.Al tcoi
nsar eallot her.Exampl es
areEther,Litecoi
n,Moner o,Dash, Zcash,etc .
andeac honehast heir
ownpr oper ti
esandf unc t
ions .

Hist
orical
ly, tradi
t i
onal currencies ar e bac ked by a phys i
c al
commodi t
ylikegol dors il
ver.‘
Fiat’c ur
rencies,liketheU. S.dol
lar,
arelegaltender sdec l
aredbygover nment sthatar ebas edont he
rel
ati
ons hip between s upplyand demand and t he creditofthe
economy.I tdoes n’thaveani ntr
ins icvalueitselfasitisjustpaper
moneyandphys icalcoi
nsmadeofl ow-valuemat eri
als
.

Because ofblockchaintechnologyand t he wayc r

yptoc urrenci
es
work,youar epur chasi
ngwhatc ouldbec onsi
deredat ec hs tock.
Thetermc ryptocurrenc
yisfrom t hecombi nat
ionofc r
ypt ography
whichisthepr act
iceoftechniquesf ors
ec urecommuni cationand
curr
encywhi chismoneyi nanyf orm.However ,cr
yptoc urrenci
es
havemor eincommonwi t
hstockst hantheydowi t
hc urrencies.

TheHist
oryofBlockchai
nTechnol
ogy&
Crypt
ocurr
enci
es

Blockchains ar e a new t echnology that is made up of ol d

technologiest hathave been in usef orthousandsofyear s.For
exampl e,usingtokens,coi
nsorbillsthatrepr
esentaval
ueasaf orm
ofpayment .Anotheressenti
alpartoft hi
sequationi
scryptography
andasment i
onedpr evi
ousl
yisthepr acti
ceoftechni
quesforsec ur
e

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
communicati
on butundert he eye ofthi
rd part
ies.Bloc
kc hai
ns
themsel
vesareledger
s .Ledgershavebeeninus eforthousandsof
yearst
orecordfinancialtransact
ions
.

Thec onceptandthetechnologythatiscr
iti
calt
othec r
yptocurr
ency
market today were fir s
ti ntroduced i
nt he f
allof 2008 ina
whitepaper.Itwasini
ti
all
ypar tofapr oposalforthenow famous ,
Bit
coin,withthepurposeofc reati
ngapeert opeermoneyt ransf
er
syst
em wi t
houttheneedf orbanks .

In2009,itwasr eleasedasopen- sourcedsoft

war e.
Asaninteresti
ng
sidenote,thewhi tepaperwaswr i
ttenundert henameofSat oshi
Nakamot oandt ot hi sdateitisnotknownwhom t hi
sper son(or
peopleare).
The bloc kchai
n t ec hnology innovat i
on all
owed Bitc
oin t o be
consi
deredt hefir stdi gi
talcur
r encyt osol
vet hedoubl
es pending
probl
em.Doubl e-spendi ng oc
c urswhen s omeone can easil
yl i
e
aboutrec ei
vingc urrenc yandspendi ttwi
cewithaverylow chance
ofbeingc aught.

I
n2010,‘Nakamoto’whohadbeenworkingwithot
heropensourced
devel
opers on Bi
tcoi
n dec
ided t
os tep away f
rom the proj
ect
.
Contr
olwashanded overt otr
usted and pr
ominentBit
coincore
devel
opers.

2011s aw thei ntroducti

onof‘ alt
coins.
'Thes ecoi
nsar ec onsidered
tobeanyc rypt ocurrencyot herthanBitcoinandar ec reatedfrom
‘
forks’ofBitcoin.Af orkiswhent hedevel opersofac ryptocurrency
decidetoc hanget heprogr ammingofac oi
n.Ideall
y,thisisdonet o
upgradethec odeofas pec i
ficcointohelpitflour i
sh.In2011, these
for
ks wer ec reated toi ntroducec r
yptocur r
ency alternati
ves to
Bit
coin.Sincet hen hundr edsofnew c ryptocurr
enc i
eshavebeen
developedandar egaini
ngmar ketspeedver yquickl
y.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
TheFut
ureofBl
ockchai
n&Cr
ypt
ocur
renci
es

Gover
nmentandBankAdopt
ion

Thec onc eptoft hebloc kchainwasc reat edt osolvet hepr oblem of
digi
talt rust.Many i nt he c ryptoc urrenc ys pacef eelt hatt hi
s
technologywi l
lallow ourwor l
dt o oper ate entirel
yonl i
ne.They
beli
evet hisbec aus eblockc haintec hnol ogypr ovidest heabi li
tyto
recordi nformat i
on in an ar eathatc an’tber emoved and al lows
everyonet os eec hangest hatdooc c ur.Thi smakest hepr oblem of
deceptionandt amper ingmor ediffic ult.Thi sistheoner easonwhy
many ec onomi c exper t
s ar e beginning t os pec ulatet hatwor l
d
government sand bi g financ i
alinstitutionswi llevent uallyc r
eate
theirown c ryptoc urr
enc yoratl eas t,inc orporate as pectsoft he
technologyintofiatc urrencies.

I
ncr
eas
edCompet
iti
on

Whi l
eBi tcoinandt hes econdclosestri
valEther
eum ( whi
chi sthe
platf
or m Etherisusedon)havepr oventheyhavestayingpower,the
mar ketandt echnologyarecontinuouslyexperi
encinginnovati
on.
Expec ttos eepotential
lyunknownc oinsbecomes tr
ongerast here
i
sr oom f or mor ec ompet i
ti
on even wi th the hundr eds of
cryptocurrenciesalr
eadyont hemar ket.

I
COsWi
llChangeHow Compani
esRai
seCapi
tal

An ICO ( Initi
al Coin Offer i
ng) is an unr egul
at ed means of
crowdfunding.I COsar ebecomingan at t
ractiveopt i
on ofrai
sing
capit
alfors tartups,orevenformor ees t
abli
s hedc ompanies.For
example,t herewoul dn’tbeaneed t o pers
onal l
yfind,meetand
convinceindividualinvest
orstoinves
tinyourbus inessasanyone
canpartic
ipat easanI CO i
nvest
oronli
ne.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Regul
ati
onsWi
llBeCr
eat
ed

Rightnow,t he cryptocurr
enc ymar ketisi n an awkwar d growt h
stageandgover nment s
,banksandot heroffic i
alsarestil
lt r
yingto
figur e outhow t o handlet histechnology.El ena Kvoc hko,Chi ef
I
nf ormationOffic eroftheSec uri
tyDivi
sionatBar clays,
sai dthather
bankhadt alkswithregulat
orsaboutBi tcoin,blockchai
ns ,andt heir
i
lk.Theoffic ial
sappeart obeopent otheideaasl ongas“ knowyour
cus t
omer ”lawsar eobeyed,andc ountr
iesar ealreadyc omi ngwit h
waysofac commodat ingthenew t echnology.

TheMar
ketWi
llBecomeMor
eSt
abl
e

Cryptoc urr
enc ypricesc ananddofluc tuat e,somet i
mesdr ast
icall
y.
Bitcoi
n,t he ol des
tofal lthe coi
ns,hasgr aduall
ybec ome mor e
stableovert heyear sands othereisar eas ontobel i
evetherestof
themar ketwi llaswel l.Thec aseforthi sdependson whet hera
strongar gumentc anbemadet hatbeat sus ingtradit
ionalmoney.
Thehopei st hatasmor eandmor eoft hewor l
dbegi nstointeract
with eac h ot her online,c r
yptocurr
enc ies wi l
lbe mor e of an
attract
iveopt ionbec auseoftheirmanybenefit s.

Cryptocur
renci
es Wi
ll For
ce Payment Pr
oces
sor
sto
Improve

Payment pr ocessorss uch as Visa or Mas t

er car dc har ge fees
wheneveryouus eyourc ards
.Ithasbeenpoi ntedoutbyNi ckovan
Somer en,ChiefTechnologyOffic eroft heLinuxFoundat ion, thatthe
chargeexc eedsthec osttoclearors ettletrans actions.Shoul dt he
worldi ncr
eas eit
sadopt i
on ofcryptoc urr
enc ies,t hisc ouldf orce
these paymentpr oces
s orsto become mor ec ompet itive.Thes e
compani es,aswel lasbanks ,woul d need t o adj ustthei rpr i
cing
clos
ert otherealcostofhandl i
ngtrans acti
ons .

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
TheFundament
alsofCr
ypt
ocur
rencyTr
adi
ng

Theyar
eIr
rever
sibl
e-NoMat
terWhat

Onceat r
ansacti
onhasbeenc onfir
med, i
tcan’tbec
hanged;t
hisi
sa
cr
ucial
pointtoremember .I
fyousentyourfundsbyac
cident
,tot
he
wrongpersonorwor se,s
omeonewhohass c
ammedyou–t hereis
nowayt ogetthem back.

Fas
tTr
ans
act
ions

Transact
ionshappenf ast–withinminutes.Noneedt owaithour s
orevendays .Nomatterwher eyouareint hewor ld,
nomat terhow
closeorfaryouar et
ot heper sonyouar es endi
ngc rypt
ocurrenc
y
to.Fastt
ransacti
onscombi nedwi t
hirr
ever s
ibil
it
ymeansyouneed
topayattentiont
owhatyouar edoing.

NobodyKnowsI
t’
sYou

Bac k when c ryptocur renc y firs

ts t
ar ted out ,privacy and bei ng
anonymouswases sentialt oearl
yt rader s.Today,it’
ss til
lcommon
fortrader stoc reateal i
as ess othatal lthet r
ansac t
ions,ac count s,
ands toreddat ayouhavec an’
tbet iedt oyourr eal-wor l
dident ity.
Thismi ghts oundabi tpar anoid,butt hes ystem issetupt opr event
identi
tythef t.Forexampl e,c r
editscar dsus ea‘ pul
lmet hod.'When
youus eyourc reditc ardt opayf ors omet hing,youar egivingt hat
mer chantt her ighttoac cessyourf ul
l credit.Themer chantpul lsthe
moneyf rom yourc r
editc ar daccount .Crypt ocurr
enc y“pus hes ”the
transacti
oni ns tead,meani ngyous endt heexac tamountwhatyou
wantt ot her ecipientandt heydon’ tgetac cesstoanyaddi t i
onal
information.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
YourFundsar
eSaf
erThani
naBank

Therei
saveryst
rongmeasureinpl
acewhereyourc r
yptocurr
ency
fundsarel
ocked i
n.I
t’
scal
led apubl
ickeycryptographysystem
whichmeansonl
ytheownerofthepri
vat
ekeyc ansendt hemoney.
Remembert
hepr
evi
ouspoi
nt–i
t’
sa“
pus
h”t
rans
act
ion,nota“
pul
l.
”

Eas
ytoGetSt
art
ed

Iti
sincr
ediblyeasytogetsetupands tar
ttrading.Youneeds ome
soft
ware,somewher etostoreyourmoneyandal i
tt
leknowledge.
Wewi l
lcoverwhatyouneedinal at
erchapter.Therearenos peci
al
regul
ati
onsorc er
tific
ati
ons.Youdon’thavet oreporttoanyoneor
askpermissi
on.Noonei swatchi
ngyou.It’
sjustyouandtrading.

Cont
rol
ledSuppl
yCoul
dBoos
tVal
ueOverTi
me

Theamountofmos tc r
yptoc ur
renci
esdec r
easesovert i
me.Thisis
donebyas peci
alpieceofs ourcecodethatspecifieshow muc hcan
exi
st.Thi
smakesc ryptocurrenci
esmor el i
ke preci
ousmet alsor
l
imit
ed non-renewabler esources. Unl
ike tr
aditi
onal for
ms of
money,whereitispossiblejusttomakemor e,thatisimpossi
bleto
dowithcrypt
ocurrenci
es .

BanksCan’
tTouchYou

Forthosewhowor ryaboutbankpol ic
iesleadingtofut
ureec onomi c
i
ns t
abili
tyt hen tr
adingi nc ryptocurrenciesisades ir
ableopt ion.
Cryptocurrencyt rading happens ent i
rely outsi
de ofany di rect
controlofnat i
onalbanks .Thisal s
omeanst hatabankc an’tfreez e
orseizeyourbankac countforwhat everr eason.Theycan’trever se
tr
ans act
ions .Theyc an’ttouch yourmoney.How i sthi
spos sible?
Thisi sthe c ase becauset he c ryptocurrencyledgerlives on a

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
decent
ral
iz
ed networ
kwi
thi
dent
icalc
opi
esexi
sti
ngi
n numer
ous
l
ocati
onsglobal
ly.

Sel
f-I
nter
est
edQual
ityCont
rol

Mininghappenswhent ransacti
onsarever i
fiedandaddedt othe
blockchain.Mini
ngisdonebyr ealpeoplewhous especials of
tware
to ensuret hatallt he t
ransacti
ons i
n a blockchain arei ndeed
veri
fied.Theygetc ompens at
ed forthiswor k.Itisint heirown
self
-i
nterestfinanc i
allyto keep accurate,up-t
o-datet ransacti
on
records.Thisproces
ss ecurestheint
egrit
yofthewhol es ystem and
thevalueoft hecurrencyit
self
.

LowerFees

Cryptocurrenci
es have numer ous securi
tyfeatur
es thatens ure
therearenoac tsofduplic
atingt hedigi
talf
unds .
Thisel
iminatest he
need f or transact
ions fees t o supportt hi
rd-
party payment
processorsli
keac r
editcardc ompanyorPayPal whowouldt ypicall
y
chargetoc heckthosetransac t
ions.Minerstakeoverthi
swor kand
arecompens at
edwi thnew cur rencyunit
sands ometimesopt ional
transac
tionfees.

Eas
ytoUs
e

Using crypt
ocur
rencies globallyis easy.They ar e not t
ied to
ever-
changing r
ates or t r
ans act
ion fees
.Thes efunds can be
exchanged and uti
li
zed internati
onall
y withoutexperienc
ing the
usual problems using di fferent for
ms of c urr
ency bet ween
countri
es.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Under
standi
ngCr
ypt
ocur
renci
es

WhatCanYouDowi
thCr
ypt
ocur
renci
es

You c an pur c
has e goods ,s ervi
cesort rade f oranot hert ype of
money.Somec ol
legesnow ac ceptBi tcoinsast ui
tionf eepayment s
.
In 2013,The Uni ver si
ty ofNi c
osia,a pr ivates chooli n Cypr us
,
became t he fir st universit
yt o acc ept Bi tcoins.I n 2014,New
York-bas ed,Ki ng’
sCol l
egebec amet hefir stUSs choolt oac ceptthe
digit
alc urrenc y.Groc erystores,cafes ,retailstores ,t
ravelagenc ies
,
i
ns uranc epr oviders,evenl uxur ycardeal er s
hi pshaveal lreported
thattheyal lowc r
ypt ocurrenciesasf or msofpayment .BitcoinATMs
areal sobei ngi nstall
edi npopul arur banc ent ers.Ot heropt ionsto
spend c r
ypt ocurrenc i
eswi llbe devel oped ast he adopt i
on rate
i
nc reasesar ound t he wor ld and c ryptoc urrenc i
esbec ome mor e
mai nstream.

Top10Cr
ypt
ocur
renci
es

1 Bi
tcoi
n

Bi
tcoi
nisthefirstdec
entrali
zedledgercurr
ency,foundedin2009.
Bi
tcoi
nwasi ni
ti
all
ycreat
edt ofaci
li
tat
eeas i
erglobaltransac
tions
wi
thlow t
ransact
ionfeesthatcanbet rans
ferr
edal mos ti
nst
ant l
y

Cr
ypt
ocur
renc
yTr
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ypt
oMei
ster
.i
o//ByAedanKel
ly
andwer
enotc
ont
rol
ledbyanyc
ent
ralfinanc
ialaut
hor
ity.

Thec onc er
nofs cali
nghasal waysbeenani ss
ue.Forexample,a
trans
ac ti
on can take about10 minutesto proc
ess,and asthe
networ kofusersgrowt hewai
tti
mesgetlonger,
incompari
son,Vi
sa
canpr ocess1700t r
ansacti
onspersecond.

Today,Bit
coinhasbecomet hemos tpopularcr
ypt
ocurrencywith
the hi
ghestmar ketvalue.Bi
tcoi
nisleading t
he way formor e
mainstr
eam vendor st
oadoptt hi
sform ofcurr
encyforeveryday
typeofpurchas
es .

2 Et
her

Etheri sthe coin us ed by t he Ethereum pl atform and is very

differentto Bit
c oi
n and ot heral t
coins.Inf act,ini
tial
lyi
twas n’
t
designed to be a c urr enc
y,i twas des i
gned t os upportsmar t
contract
s.The i dea was t hatEt hereum mi ners would provide
compani es t
hei r proc essi
ng power s ot hat thesec ompani es
woul dn’
tneedtoi nves tinaddi t
ionalservers.Inthisscenar
io,Ether
i
sus edtobeaf orm ofpaymentonapl atform.

3 Ri
ppl
e

Thei nit
ialr
eleas
edatef orRipplewasin2012, andi twascreatedfor
peer t o peer debitt ransfers.I tist he t hird mos t popular
cryptocurrencyi
ntermsofmar ketval
ueasoft heSeptember2017.
Bitcoin’
sprimarypurpos eistobeapaymentmet hodwhil
eEt heris
meantt obeus edfors mar tcont r
act
s .Rippleals ohasadi fferent
use.Ithasbec omeadec entr
alizedsol
ut i
onf orfinanc i
ali
ns t
it
utions
andac t
sasbot hac ryptocurrencyandadi gitalpaymentnet work.
Thiss i
tuati
on developed bec ause a wi de r ange of financ i
al
i
ns ti
tuti
onsbegant otakenot icethatthetec hnologyeli
minates

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
del
ays
,c onfirmst hata sett
lementhastaken placei
nr ealti
me
(
about4s econds)
,andc ansustain1000t
rans
ac t
ionsperseconds
whi
leBit
coinisonlyaver
aging3t o4.

4 Bi
tcoi
nCas
h

OnAugus t1s t
,2017Bi tcoinforked,andc reatedBitcoinCas h.This
fork was s tar
ted by Bi t
coin mi ners and devel opers who wer e
concernedaboutBi t
coinsabili
tyt oscale.BitcoinCashimpl ement ed
anincreas edblocks i
zeaswel lasot hermeas urestos peedupt he
veri
ficationpr ocessregardlessoft henumberofmi ner ssupporting
it
.Whi l
et hesechangeshaver aisedc oncernedabouts ecurit
y,i
thas
notprevent edthiscryptocurr
enc yf r
om qui cklyri
si
ngupt hemar ket
ranks.

5 Li
tecoi
n

Lit
ecoi
nwasr eleasedonOc t
ober7t h,2011byChar l
ieLee, af
ormer
Google empl oyee.Itwasaf or kfrom Bitcoi
n and i n manyways
techni
call
ynear lyi
dentical
.Thispeert opeerc ryptocurrencythatis
alsoopens ourceandc ompl et
elydec entr
ali
zedwasc reatedtosolve
some of Bi tc
oin’
s pr oblems. Litecoi
n has f ast
er t rans
action
confirmation t i
mes ,better storage effic i
ency and al mos tz ero
paymentc osts.

6 Das
h

I
nJanuar y2014,Das hwasr el
eas edasXCoi nandal i
tt
lemor ethan
amont hlaterthenamewasc hangedt oDarkcoin.I
nMar chof2015,
i
twasr enamedagai nt oDash–abl endbet ween‘Digi
tal
’and‘Cash”
.
Dashisabi tcoi
n-basedcurrencyt hatfeaturesins
tanttransact
ions
,
pri
vatetransacti
onsandi sdec entral
ized.It
sgoalistobec omet he
mostus er-fr
iendly and on-chain-scal
ablec rypt
ocurrencyint he
world.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
7 NEM

Backini ts firs
ti nc
eption ofNEM,t he goalwas t oc reat
ea
communi t
y-ori
ented cr
yptocurrencyfrom s c
ratch.Thiswasabi g
undert
akingandhadi t
sc hal
lenges.Eventuall
y,as tabl
eversi
onof
NEM launched on Mar ch 31,2015.NEM’ s pl
atform has many
benefici
als ervi
ces such as like payments,as set making,and
messagi
ng.

8 I
OTA

IOTA isc onsi

deredt obet hefir s
tblockchainfreec ryptocurrency
andi nsteadus eswhati sknownast heTangleledger .Ithass ome
veryunus ualcharacteri
sti
cssuchasnotbei ngablet obemi ned, the
numberofc oinsis
s uesiss t
ric
tlydefined,andi ti simpos sibl
et o
issuenew c oinsabovet hepr esetones.However ,thedevel opers
haves ai
dt hisnew technologyhass ol
vedthec ommonpr oblemsof
Blockchainsuc hascentrali
zati
onofc ontr
ol,obsoletecryptography,
inabil
it
yt oconductmi cr
opayment s
,part
iti
onintolerance,scalabi
lit
y
li
mi t
s,highrequirement sforhardwareaswel lasot hers.

9 NEO

Neoi softentor ef
erredt oas“ChineseEthereum”andisthefir s
t
decentr
ali
z ed, open-
s ource cr
yptocurr
ency i n Chi
na. I
n late
September2017,Chi naannounc edabanonI COswhichaffected
Neobutt hepr i
ceevent ual
lyc
orrec
t edi
tsel
f.

10 Moner
o

Moner o(ori
ginal
ly BitMonero)was c reated in Apri
l2014 and
foc
us esonpri
vacy,decentral
izati
on,ands c
alabil
it
y.Itrunsonr uns
onWi ndows,
Mac ,Linux,Android,andFr
eeBSD. Moner odevelopers
bel
ieveitissuperiorto Bitc
oin becauseofi tsmi ni
ngal gor
ithm,

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
adapti
veblockl
imi
t,s
trongprivac
yc ont
rol
sandt
hequal
it
yoft
hei
r
overal
ldevel
opmentandresearchteams.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
 Chapt
er2:

TheWal
let
s&TheExc
hanges

Whati
saCr
ypt
ocur
rencyWal
let
?

I
nt heworldofc rypt ocurrenc yt
rading,youar eyourbank.Tos t
art
tradingincryptoc ur r
enc i
est hefirstitem youwi l
lneedi sawal l
et.
Wal let
sares oftwar e programst hats t
ore keys ,both publicand
private.Wall
etsint erac twithvari
ousbl ockchainst oall
ow us er
st o
sendandr eceivec ryptocurrencyandc heckthei rbalances.Youc an
thinkofyourwal letl i
kei t
’syourbankac count.

Keepi nmindthatawalletdoesn’tstoreanyphys ic
alcoins.Theonly
twof unc
tionsofyourwalletaretokeepyourpr i
vatekeyss afeand
toc onnectto yourcoinsbl oc
kc hain.Privat
e keysal l
ow f orthe
movementoff undst o othertrader sand pr ovi
de the abili
tyto
withdraw fr
om yourc r
yptocurrencyac count.A publickeyi salso
used intransact
ionsand isneeded t or ecei
vec ryptocurrencyto
yourwallet.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
How DoTheyWor
k?

Crypt ocurrencywal l
etsfuncti
on ver ydifferentlyfrom t r
adit
ional
wallets,s o peoplet end t
o getabi tconfused how t heywork.As
ment ionedbef ore,theydon’tstoreyourc oins.Theyar en’
tlocated
anywher ephys ic
ally.Remember ,allt
her ec
or dsinc rypt
ocurrency
tr
adi ng isbei ng recordi
ng and s tored on the bl
oc kchai
n oft he
cryptocur r
enc yyouar etr
adingin.Her eistheover allprocessofa
tr
ans action:
1.Someones endsyouat ypeofdi gi
talcur
renc y
2.Bydoi ngs o,theyaregi vi
ngyouowner s hi
poft hec oi
nst oyour
wallet’
saddress
3.Togetac cesstot hos
ec oins,yourwallet
’sprivat
ekeymus tmatch
thepubl i
caddr essthosec oi
nswer egiven
4.Ifthekeysmat c
h,yougetyourc oi
nsinyourwal l
et,andthecoins
i
nt hes ender’
swal l
etwilldecrease.

Theonl
yproofthi
shappenedisthet r
ansac
tionrecor
dthatgets
addedt
othebl
ockchai
nandobvi
ously,ext
racoinsi
nyourwal
let
.

Thi
ngst
oCons
iderWhenChoos
ingaWal
let

Compat
ibi
li
ty

Not all wal

let
s s upport al
lc ur
renci
es.It
’s common f or
crypt
ocurr
enc
iestoofferthei
rownwal l
ets
.Makesureyourwal
letis
compatibl
ewi
ththecoin(orcoi
ns)youwanttot
radein.

Si
ngl
eorMul
tiCoi
nTr
ader

Therearehundredsofc oi
nstoc hoosefrom,eachveryuniquein
frameworkand pur
pos ethan t
heot her
.You mayc hoosetoj us
t
focusononecoi
n,Bitc
oinisthemos tpopularf
orexample,oryou

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
maybeint
erest
edi ntryi
ngoutaf ew opt
ions.I
fthi
sisthec
ase,
t
her
earewall
etsavai
lablethatal
low f
ormulti
-cur
renc
yuse.

Wal
letPr
ivacy

Thisisatri
ckyarea.Yourwalletwon’
tbeli
nkedyourr eali
denti
ty;i
t
getsanal i
as.However ,asment i
onedbefore,allt
rans ac
tionsare
stored on the bl
ockchain.They ar
e by the very nature ofthe
blockchai
ntechnologyandpur pose–per
manentandpubl i
c.

Techni
cal
lyyourwal l
etaddres scoul
d be t
raced t
o yourr
eal-
li
fe
i
dentit
yalthough t
hisisunlikel
y.Don’tworry;t
hereareproj
ects
underwaytoincr
easeprivac
yandmovet owardful
lanonymi
ty.

Acces
sibi
li
ty&Us
age

Therearedi
ffer enttypesofwal l
etswhi
chwewi l
lbedis
cus s
ingi nan
upcomingsecti
on. Howyouwantt ouseyourwall
etwil
laffec twhi c
h
wall
etyouwillwantt ouse.Youmayevenwantt oc onsi
dermul tiple
wall
ettypes
;dividingyourc oinsint
omor ethanoneisc ons i
dered
saf
er.Somec ommons it
uations:

I
fyouint
endonmaki ngeverydaypur c
hasesthatares malland
fr
equent,t
henc ons
ideranonlineors of
twarewall
et.Justputthe
amountyouwillneedont hi
swalletandkeepther estinamor e
secureopt
ionl
ikeahar dwar
ewal let
.

Ifyouplanonsavi
ngupandmakinginf
requentl
arger
t
ransact
ionsthanahar
dwarewal
leti
sabetterfit.

Ifyoupl
anonplayi
ngonac rypt
ocurr
encyexchange,t
henus
ean
onli
newal
let
.Becarefult
houghandonl yputtheamountyouare
pl
anningt
otradewithont hi
swallet
.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Addi
tionalSec
uri
tyMeas
ures
:

Storeonlysmallamount sonl
ineforeverydayus e,keepther est
i
namor esecurewallet
Backupyourwal letwithwhatisconsideredcoldoroffli ne
storageoptionswhichwi l
lal
low youtorecoveryourwal l
etifitis
l
os t,s
tolenorthereisac omputerfai
lure
Regularl
yupdateyourwal l
etsoftware,yourcomput erand
mobi l
edevi c
e;youneedt oensur eal
lyourdeviceshavet helatest
securityupgrades

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
 Setlongandc ompl
expasswords–don’tforgett
omakes ur
ea
pas s
wor disneededtowit
hdraw f
unds
Researchyourwall
etopt
ionsandc hoosethosethathaveas ol
id
reputationandprovi
deextrasec
urit
ys uc
hast wo-fac
tor
authenticat
ion

TypesofCr
ypt
ocur
rencyWal
let
s

Col
dorHot

Classifyi
ng wal l
etsc an be conf using ast here are groupswi thin
groupsandt hei nformationc hangesast het echnologydoes .The
firstc l
assificationi swhet herawal letis‘c
old’or‘hot.'Acoldwalletis
the c onsidered t he saf
es tbec aus eiti s notc onnec t
ed tot he
i
nt ernet.Typic al
ly,youwoul ds t
oret hebul kofyourc oi
nsinac old
wal l
et.A hotwal letistheoppos ite.Itiseitherc onnected tot he
i
nt ernetori sloc atedoni t.Thes etransacti
onshappenmuc hf aster
asbei ngonl inemakesyourc oinsac cessi
bles oyouwoul dtypicall
y
useahotwal letforever ydayus e.

Sof
twar
eWal
let
s

Soft
war e wal lets bas i
cally
mean t hatwal letsof tware
needs t o be i ns t
alled on
your c omput er or mobi l
e
devi
c e.Softwarewal l
et sare
themos tcommont ypeand
are bothc ons idered t o be
Hotwal let
s.Int hissc enario,
thes oftwarewi l
lstor eyourpr i
vatekeydirec
tlyontothedevi
ce.
Therear ediffer encesands i
mil
ari
ti
esbetweendesktopandmobil
e
opti
onswhi chwewi llcover .

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Des
ktop

Des kt
op wal l
etsr equir
e you to downl oad software ont o your
comput erorlapt op,andtheyar ec onsideredt obea‘ HotWal let
.'
Theyar eonlyac c
essi
blefr
om t hedevi cethathast hi
ss of
t ware.A
desktopwalletiseas ytous eandc onsi
der eds af
ert hanonl i
neor
mobi l
e wallets.This enti
rely depends t hough on your onl i
ne
securit
yhabits.Shouldyourc omput ergethacked, recei
veavi rusor
i
s damaged enough, you c ould pot enti
allylos e all of your
cryptocur
rency.Make r egularbac kupsofyourwal l
etand s t
ore
them onadi ffer entdevi
cetohel poffs etthes ecur
ityissues.

Mobi
le

J
us tli
kedes kt
op wall
ets,mobil
ewal letsrequir
eyou t oinst
allan
applic
ati
ononyourphone.Duet ot hel i
miteds paceonat ypical
mobi l
edevice,thesewallet
stendt obes mal l
erands i
mplerthan
theirdes
ktopver si
ons.However,mobi l
ewallet
sal low youtous eit
anywheret hatyougoandc anpr ovideext rafeat ur
est hatonli
ne
wallet
sdon’ thave.Neverkeep al lyourc r
yptoc urr
enc yon your
mobi l
edeviceasitist
ooeas yt
ol ose,justli
keat raditi
onalwall
et.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Pr
osofSof
twar
eWal
let
s

Easytous e
Yourkeysar estor
edinyourdevi ce,notona3r dpart
yser
ver
Mobileversi
onsar emor epracti
calforeverydayus
e
Mores ecurethanonlinewallet
s
Dataisavail
ableattheus er
'sownc omput erormobil
edevic
e
Easi
ertobac kupyours el
f
Youhavec ontroloveryourcryptocurrency

ConsofSof
twar
eWal
let
s

Wall
etisl
ostifdevi
cei
slos
t,s
tol
eorser
ious
lydamaged
Desktopwal
letcanonl
ybeaccess
edati
tsphysi
call
ocati
on
Hackersc
anhac kthec
omputerormobi
leandgainaccesst
o
wal
let

Popul
arChoi
ces

Mobi
le Des
ktop Bot
h

Onl
ine

Online( orweb)wal l
etsar eals
oc onsi
dered‘ hotwallet
s.'Theyare
themos tuser
-fr
iendlyofallwallet
sandj ustrequireaccesstoaweb
brows eronanydevi cet hatisconnectedt othei nter
net.Themos t
i
mpor tantpoi
ntt orememberi st hatwhiletheymaybet heeasi
est
to use,t heyarealsoc onsidered theleasts ecure.Onli
newal l
ets

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
storeyourpri
vatekeysonas er
verandar econtrol
ledbyat hir
d
party.We st
rongl
yr ecommend nots t
oringthe majori
tyofyour
coins on an onl
ine wall
et.Onli
ne exchanges and wall
ets ar
e
extremel
yattr
acti
vetohackers
.

Pr
osofOnl
ineWal
let
s

Easytous eands etup

Accessibl
efrom anyinternetconnecteddevice
Onlinewalletsareusuall
ylinkedwithc r
yptoc
urrencyexc
hanges
onli
ne
Fastestwayt ocompletetransact
ions
Idealf
orhol dingsmallamount sofcryptoc
urrency

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Pr
osofPaperwal
let

Morec ontr
olonyourwal let
Mores ecur
et hanonl i
neands oft
war ewall
etsbec aus
ebot ht
he
pr
ivat
eandpubl i
ckeysar epr intedonapi eceofpaper
Canbes toredandt akenc areofwi t
houtinternetconnec
tion
Oneoft hemos thac ker-
pr oofc r
yptowalletchoices
Notstoredonac omput er
Pri
vatekeysnots toredonat hi
rd-partys
erver

ConsofPaperwal
let

Cangetdamagedwi t
ht i
me
Ifthepaperislos
tordes t
royed,theuserwil
lneverbeablet
o
accessthei
raddresswherethefundsar e
Mul t
iplecopi
estopreventdamagemakei tmorepronetobeing
st
olen
Mor eeffor tr
equir
edtomovec rypt
ocurrenc
iesaround

Popul
arChoi
ces

Mostsoft
wareandonli
newall
etshavethi
sopt
ion
I
fnot,t
ryoutBi
tAddr
ess.or
gandBitCoi
nPaper
Wallet

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Wher
etoBuyCr
ypt
ocur
renci
es

Afteryou’
vec hosenthewal l
etthatsui
tsyourneeds ,t
henextstepin
tobuyyourfir s
tcryptoc
urrency.Youcanpayf oryourfirstc
oinswith
creditcar
ds ,cash,PayPalorbankt r
ansfer
s.Wat chout;eachhas
theirowni ssuesthatyouneedt obeawar eof .Credi
tcardscome
withhighf ees,andPayPalhast r
ansacti
onsl i
mits
.Cas hwon’tget
yout hebes texchangeratesandbankt ransfersaretheslowestof
allopti
ons.

Whereyoucanbuythem i
sanothers
ubj
ectal
toget
her
.Therearea
f
ew opt
ionst
hatyoucanuse,s
omedependonwher eyouli
ve:

Cryptocurr encyexchanges :Wewi llcoverexchangesi nthis

secti
on.
Bitcoi
nATMs :Thes eareATMsl ocatedinpublicplac esandallow
yout ous eregularc urrencytobuybi t
c oi
ns.Youneedawal l
etfirst
totransferthec oi ns.
VoucherCar ds :Theseares lowlygainingpopul ar
ity,youmay
evenbeabl et obuyt hem atr egularstoresinyourar ea.Theylook
li
keagi ftcard,ar eloadedlikeone,andyouc anredeem t hem
onli
ne.
DirectTradi ng:Thisisdonedi r
ectlyonapeert opeerpl atf
orm,
therearenoexc hangedher et hatactas‘ middl
emen. '

Cr
ypt
ocur
rencyExchanges

Whati
saCr
ypt
ocur
rencyExchange?

Acryptoc
urrencyexchangei sawebs i
tewher eyouc anbuy,sellor
exc
hangedi gi
talc
ur r
encies.Youhavetheopt ionoftradi
ng
bet
weendi fferentcrypt
oc oinsorfortradit
ionalfiatmoneylikeUS
dol
lars
.Everyonetradestogetherregardlessofyourexperi
ence

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
l
evel
.

TypesofExchanges

1 Cr
ypt
ocur
rencyExchanges
/Tr
adi
ngPl
atf
orm:

Asment ionedear l
iert hereareonl i
nes it
esthatc onnec tbuyersand
sell
ers .Thistypeofexc hangeisl i
keat r
adit
ionals tockexc hange.
Trader smake t rans actionsbas ed on the currentc ryptocurrency
mar ketpr i
ce;theexc hangeac tsast heinter
medi ar
yandc hargesa
feef orever yt r
ans action.Someexc hangesallow you t oc onvert
yourr egularfiatmoneyi ntocryptocurrency,
eliminatingtheneedt o
goel sewher etobuyyouri ni
ti
alc oi
ns .

2 Di
rectTr
adi
ng:

Dir
ec tt
radi
ngplatfor
msal l
ow peopl etodirectl
ytr
adewithanother
person.Theseplat
formss t
il
lc hargeaf eeforeachtr
ans
ac t
ion.The
majordifferencehereist
hatt hes el
ler
ss etthei
rownexchangerate
anddon’tuseafixedmar ketpr i
ce.

3 Cr
ypt
ocur
rencyBr
oker
s:

Thesewebsit
esall
ow anyonetobuyandsellcr
yptocurr
enci
esata
pri
cesetbythebroker
.Usuall
y,t
hisi
sthemarketpri
ceplusasmal
l
premium,verys
imil
arto3rdpartexc
hangebrokersatai
rpor
ts.

How t
oPi
ckBet
weenExchanges

Whereyouar elocated:Someexchangeswil
ll
imitwhatyoucando
onthei
rplat
form dependingonwher eyouareinrel
ati
ont othem.
You may have partialuse out ofthe exc
hange or full
.This
i
nformati
oniseasil
yfoundands houl
dbeus edfirstt
onar r
ow your

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
l
is
tofopt
ionsdown.

Has a s ol
id and wel l-
known r eputati
on:Ther eisa lot of
informationonlineaboutexc hangess obec ar
efulwhereyouget
yours.Trytogeti nformationfrom multi
plesourc
estocomparelike
industrywebsites ,revi
ew sit
es ,newsand indi
vidualuser
s.Make
suret olookatthemos trecentdatayouc anfindast hi
sindust
ryis
rapidlychangi
ng.

Shop around based on exchange rat

es :The exchange r
ates
betweenexchangesc
anvaryquiteabitsolookatthisearl
yinyour
res
earch.

Openaboutf ees:Feescanbever ydi

fferentbetweenexc hangess o
don’tassume t hereisa standard.Ifthe fee i
nformation about
deposits
,tr
ans act
ionsandwithdrawalsaren'
tcl
earlyoutl
ined–don’t
pickthatexchange.Makes ureyouf ull
yunder st
andwhatyouar e
readi
ng,noneedt orush,t
akeyourt i
met oresearchyouropt i
ons.

Availablepaymentopt ions:Thepopul arexchangeswil

loffert he
mos tpaymentopt ions,creditcard,debitcard,wiretransf
eror
PayPal.Anexchangemayormaynotwor kforyouifther
ear efewer
opti
ons .Remember t he dr awbacks t
o eac h payment met hod
ment i
onedearli
erinthi
sc hapter.

Pri
vacy:Thisi
sabi gi
ssuefors ometraderswhopr ef
ertoremain
completel
y anonymous . Many t rading plat
forms requi
re ID
ver
ificati
on.However ,veri
f yi
ng the ident
it
ies of t
rader
s does
decreas
et hel
ikel
ihoodofil
legalact
ivi
tyontheexchanges.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
ExchangeRevi
ews

Coi
nbas
e

Coinbas ei san allin one cryptocurrencywal l

et-
exchange-broker
hybrids ervicethatmakesi teas ytos ecurel
ybuy,us e,storeand
tr
adedi gitalcurrency.I
tisconsideredtobeoneoft hemos tpopular
and wel l-
known exc hanges int he world.Coinbas etradersc an
purchas eBi t
coins,Ether(Ethereum)andnow Li tecoi
nst hrougha
digi
talwal let.Formor e advanc ed users,Coinbase has another
produc tcall
edGDAXwhi chisanexc hangeformor eadvanc edusers
want i
ngt ot r
adei nthes amet hreecurrencies
.

Pr
os:

Goodr eputati
on
Highlevelofsecuri
ty
Reasonablefees
Verybeginnerfri
endly
Mobileappi savail
able
Canpur chasecoinsthroughcr
edi
tcar
dorbankwir
e
Stor
edc urrencyiscoveredbyCoi
nbas
eins
uranc
e

Cons
:

Cust
omers upportser
vic
e
Li
mitedpaymentmet hods
Li
mitedcountr
iessupported

Kr
aken

Whil
eKrakeni
saUS-basedexc
hangeandtr
adingpl
atf
orm,i
tal
so
oper
atesi
nEurope.Onemaindrawbac
kisthatyoucanonl
yuse

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
banktr
ansfer
st opurchaseBitcoins.Thispl
atform,however ,does
al
lowyoutotradefr
om bitc
oinst ootherpopularfiatcurrenci
esand
cr
yptoc
urr
enc i
es.Kraken i
sc onsidered abetteroption forthose
whoaremor eexperi
encedandc omf or
tabl
eint r
ading.

Pr
os:
Goodr eput
ation
Decentexchanger ates
Low tr
ansacti
onf ees
Minimaldepos i
tfees
Greatusersuppor t
Secure
Supportedwor l
dwi de
Ingeneral
,fol
lowsr egul
ator
ygui
del
ines

Cons:
Limitedpaymentmet hods
Nots uit
ableforbeginners
Unintuit
iveuserinterf
ace
Can’toperateineverys t
atei
ntheUnit
edSt
ates
;ifyoul
iveina
st
ateorc ountrywithstri
ctrul
esCoi
nbasemi
ghtbeanopt i
on

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
 Chapt
er3:

How t
oTr
adeCr
ypt
ocur
renc
ies

Cr
ypt
ocur
rencyvs
.For
ex

Thef oreignexchangei sals

oknownast heForex.Thisiswher eall
thewor l
d’sfor
eignc urr
enciesaretradedonadec entr
alizedglobal
mar ket.BoththeFor exandc rypt
oc urrencymar ketsareinfluenc ed
bys upplyanddemand.Thec rypt
oc urrencymar ketisstr
uc t
uredt o
wor kidentic
all
ylikestockmarkettradingwi t
hext r
emepr iceswings,
stop-l
os s prot
ec t
ions,profitobjec ti
ve orders and volatil
it
yt hat
comeswi thcurrencyspeculat
ionint heForex.

There ar ef ew di ffer ences bet ween c r

ypt oc ur r
enc yt r
adi ng and
Forext rading.Thebi gges tdi fferencet hats et st heset womar kets
apartismos tc ryptocur r
enc ieshaveal i
mi t
eds upply.New s uppl yis
addedatapr edet ermi nedanddec reasingr at e.Anot herdi fferenc e
i
st hes izeoft hemar kets.For exises ti
mat edat5t r
il
li
onwhi let he
cryptocur r
enc ymar ketisyoungerands mal lerat3bi ll
ion.Ac r
ypt o
coin’
sval uei sheavi l
yi nfluenc edbyt hec rypt oc urrencyec o-system
whi l
et heFor exi sinfluenc ed byt heec onomi csoft hei ndivi
dual
count r
iest hatar ebei ngt raded.Andfinal l
y,c r yptocurrenc ycanbe
tr
adedal lday, everydaywhi letheFor exisonl yopenal ldayf orfive
days .

How t
oBuy&Sel
lCr
ypt
ocur
renci
es

CNow t
hatyouhaveabett
erunder
standingoft
hestr
uct
ureofthe
cr
ypt
ocurr
encymarket
,iti
sti
met oreview t
hegener
alproc
essto

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
buyi
ngands
ell
ingc
rypt
ocur
renc
ies
.

Shoul
dYouBuyBi
tcoi
nsorAl
tcoi
ns

Bit
coinsar e a popul aroption fors tart
ing outinc ryptocur r
ency
i
nves t
ingand tr ading.Although att hisstagewhi l
et heyar ehigh
pri
ced,t heyareal sot hemos ts tabl
ec ryptocurr
ency.Bit c
oi nsare
avai
lableonmos tifnotallthecryptoexc hangesoper ati
ngt oday.In
Europe,youc anus eBi tc
oin.deandKr aken.IntheUSA,Coi nbaseis
apopul archoice,andi nAs i
an,ther eisOKCoi nandBi tFl
yer .These
areonlys omeoft heopt ionsyouhaveavai labl
etoyou.

Alt
coinsaredefinedasanyc rypt
oc urrencythati snotBi t coin.There
arehundr edsandhundr edsofal t
coi ns.Theyar ec onsider edr i
skier,
buttherear eaf ewopt i
onst hathaver i
senint hemar ket .Thes eare
mor es t
able and ar estil
lata l owerpr ice peruni tt han Bi t
coin
makingt hem ani dealentryc oinf ortraders.I fyouwoul dli
ket o
tr
ade in an al tcoin,there ar e plenty ofexc hanges t hatoffer
alt
ernati
vec oinst oBitc
oin.Somes tri
ctl
ywi l
ls ellas pec ificaltcoin,
somewi lltr
adeaf ew,andaf ew oft hebiggeroneswi lltradet hem
all
.Thereareliterall
yhundr edsofal tcoi
nsint hemar kets oyoumay
havet osearchf ort hebestexc hanget hattradesi nt hec oi
nsyou
want.

Dur i
ngt hatsearch, consi
derwher eyouliveast hatwillplayar olein
whi c
hexc hangeyouc anus e.Int heUSA,t herei sal i
mi tednumber
ofexc hangest hatar eal l
owedf orexampl e.I tisbet t
ert otryand
selectanexc hanget hatisasc l
os etoyourgeogr aphicl ocat
ionas
pos si
ble.Ifthatis n’tan option,c hoosean exc hangebas ed ina
count rywith as trongl egals ystem.Thispr actic
ei ncr easesyour
chanc esofbei ngabl etor et
rieveyourmoneyi fyouf allvic
timt o
i
llegaltradi
ngac tivit
ies.Thes izeoft heexc hangeal s
owi llhavean
i
mpac t.Thelargert heexc hange,t heeasieritwi l
lbet oac quir
et he

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
coinsyouwanti nt heamount syouwant .Smallerexc hangeswi l
l
havelimit
edsupplies,andi tmayt akelongertor eac
hyourt rading
goals.Many oft he altcoins exc
hanges ar es mallerand ar en’
t
regul
atedorpoorl
yr egulatedsodoyourr esearc
hont hereputation
apar ti
cul
aralt
coin exchangebef or eyou dec i
det o usei t
.Some
exchangeshavegonebankr uptwithli
tt
lenot i
ce,l
eavi
ngi nvestorsin
thecold.

Buyi
ngNow orLat
er?

Cryptoc urrenc ymar ketsar evolat i

le;thi sc an’
tber epeat edenough.
Whi l
ei tc anmakef ors tr
es s
fultr ades ,thi sisagoodc har ac teri
s ti
c
fortrader st ryingt ogeti ntot hemar ket .Themar keti spr onet o
bubbl est hatc an c omeand gor apidly.Thewor stt imet obuyi n
woul dbeatt hepeakofabubbl eandt hebes tti
mewoul dbewhen
thepr i
cei ss tabl eand atal owerl evel .Asar ule,you s houl dn’t
compar ec rypt oc ur renc y bubbles t ot hatoft radi tionalmar ket
bubbl es.Remembert hereismor evol atili
tywi thcrypt oc urrenc i
es .A
smallper cent age maymean a bubbl ei nthe For ex,butt hati s
consider edgener aldai lyvolati
li
tyi nthec ryptomar ket .Abubbl eat
1,000% i smor ec ommonwi thc ryptoc ur rencies,butagai n,t herei s
noguar ant eei twon’ tc ontinuetogr ow.Fi guringouti fabubbl eisat
it
speakort hec ras hisati t
slowes tisthec hallenge. Wat cht hec oi ns
you havec hos en f orawhi l
et ol earnt hei rpat t
er ns .Jus tliket he
Forex,t hec rypt oc urrenc ymar ketwi l
ls how t rendsandpat terns .In
al ater c hapt er,we c over fundament aland t ec hni calanal ys i
s
techniquest hatc anhel pyoudec idewhent obuyands ell
.

Si
mpl
eSt
epst
oTr
adi
ng

Anyexchangeyouc hooseshoul
dhaves t
epbys t
epinst
ruct
ionsto
gui
deyout hr
oughtheirint
erf
ace.Thebi
ggerexc
hangesmanyeven
offeri
nstruct
ionals
creenshot
sorvideos
.Togettheoveral
lidea,i
n

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
thissecti
onwewi l
lcoverthegener
alst
epstobuyingandsell
ing
Bitcoi
ns.Theseareals
ot hesames t
epsyou woul
dfol
low f
orall
cryptocur
renc
ies
.

St
ep1:Choos
eYourWal
let

Ifithas n’tbeen made c l

earyet ,let’
sr epeatanot heri mpor t
ant
less
on – never l eave a t hird par t
yi nc harge of your c oins
.
Spec i
fically,thi
smeansget tingyourownwal l
etandmanagi ngyour
keys.Cr ypt ocoinsr equir et wo kindsofkeysoraddr es sest o be
storedandt raded. Thesear eyourpubl i
ckeysandyourpr ivat ekeys.
Apubl ickeyi sus edf orinc omi ngdepos it
sands ales.Itisauni que
setofnumber soraQRc odet hatyous howpeopl ef orthem t os end
youc ryptoc urrenc y.Apr ivatekeyi sus edforout goingwi thdr awals
andpayment s.Thi sisthemos ti
mpor tantkeybec aus eits howst he
enti
r e blockchain whatyou have i n yourwal let.Italso pr ovides
accesst oever ythi nginyourwal l
et .I
fs omeone,getac ces st ot hi
s
keyt heyc anwi t
hdr aw what evert heywant .Thes afestr out ei sto
storeyourkeysandmos tofyourc oi
nsyouar en’tus i
ngonadai l
y
basisi n an offli ne orc olds torage wal l
et.A paperwal leti san
exampl eoft his.You c an tr ansferwhatyou wantt ot radet o an
onli
newal letwhenyouneedi t.

St
ep2:BuyYourFi
rstCoi
n

Tos tar
ttrading,firs
t,youneedc oi
ns.Star
tingoffwithBitc
oinsisthe
eas i
est option then you c an trade your Bitc
oins for other
cryptocurrenciesontheexc hange.Youcanal sopurchasepopular
cryptocurrenciesdi
rectl
yons omeoft hemaj orexc
hangeswi t
hfiat
money as t hey also act as br oker
s. Coinbase is a ver y
st
r ai
ghtforwardandpopul arexchangeandbr okert
obuyc oinswith
fiatmoney.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
St
ep3:Pi
cki
ngYourExc
hange

Theexc hangeorbr okeryouus et obuyyourfir stc oinswi tht hefiat

currenc yofyourc hoi cedoes n’thavet obet heoneyout radeon.I n
apr eviouss ec t
ion,wec over eds ever alexc hangeopt ionst hatyou
cans tartyourc rypt oc urrenc yt radingj our neywi th.Youwi l
lneedt o
setupanac c ount ,andt hismayr equi reI D ver i
fic ation.Thi ss t
ep
helpsens ur ef raudorot heri l
legalac tivit
iesar ekeptt oami nimum
andt hatt her ei sagr eat erc hanc eofl egalr eper cus si
ons .Whi l
eID
verificationmi ghtmakes omeofyouunc omf or t
abl ebec auseyou
wantt or etai nyourpr i
vac y,thismeas urei si nus et ohel ppr otect
you.I fyous til
lar en’tc omf ortabl ewi tht hispr oces s,yous ti
llhave
theopt i
onofus i
ngapl atformt hatal l
owsf ordi rec tt r
adingwi t
h
otherus ers .Eac hs ides etst heirpr i
c e,andt hepr iceis n’
tbas edon
theunder lyingmar ket.However ,ifyoudec i
det ous eanexc hange,
the ver i
fic at i
on pr oc essc an take a c oupl e ofdays .Onc et hi
si s
compl ete,youwi lls ends omeofyourBi t coinst ot heexc hanges o
thatyou c an us et hem t o pur chas e youral tcoi
ns .Thes e wi l
lbe
storedi nanexc hangewal letandar er eadyt obeus edi nt rading.
Theexc hangewi llkeept rac kofyourbal anc es ,andt heyal sopr ovi
de
char t
sandot heranal ysist oolsyouc anus et omakes mar t
ert rades.
Pleaser emembert onotkeept hebul kofyourc oinsi nt hes ehot
wallets.Exc hangewal l
etsar ec ons ider edt heeas iestf orhac kersto
breaki nto.

St
ep4:Ent
eri
ngYourBi
d

Enteri
ngyourbi dist hesameasbuyingc oi
ns .Itisasimpleprocess.
Youwi l
lfindt heexc hangesorderbookandwhatt hecurr
entas ki
ng
pricei
sf oryourc hos encoi
n.Ifyous etyourbi d( buyorder)fora
higherpricet hant hes el
ler
’spri
ce(lowestas k),yourorderwi l
lbe
fill
edqui ckly.Ift
hisi sn’
tthecase,youwi l
lneedt owaitlongerf or
yourorder .Onc esomeoneac cept
syourbi d,theor deri
sfilled,and

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
yourc
hos
enc
oinwi
llbet
rans
fer
redt
oyourexc
hangewal
let
.

St
ep5:Sel
lYourCoi
n

Sell
ingyourc oinisalsor eferredt oas‘ sett
inganas k.'Ther eare
threes cenari
oswher eyouwi l
ltypicallywantt osel
lyourc oin.I
fyour
coinhasgoneupi npricet owher eyouwant edtoselli
t,i
t ’
sfal
lenin
price,andyouwantoutbef oreitgoesl ower ,oryouwantt oc ashout
andc onver tyourcoinsint ofiatc ur r
enc y.Todoanyoft hes ethr
ee,
youneedt os etanas k.Her e,yous etapr i
cewhichyouwoul dl
ike
yourt radetohappenat .Youc ans ellonec oinatatime,oryouc an
dowhatmos tdo, s
ellabat c h.Whenabuyerac ceptsyouras kprice,
thet r
adewi llbecompl eted, andagai nyourc oinswil
lendupi nyour
exchangewal let
.Theac tualpr oc essofbuyi ngand s el
li
ngi sthat
simple.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
 Chapt
er4:

Mi
ningCr
ypt
ocur
renc
y

Whati
sMi
ning?

Miningistheprocessofaut henticati
ngc r
yptocurrencyt r
ansacti
ons
initsledger
.Yourc omputerendsup bei ngan al lday,everyday
comput eraccountantverif
yingt ransacti
ons.Everyc ryptocurr
enc y
hasitsownl edgerthathasar ec or
dofever ytransactionf r
om the
veryfirsttothemos trecent.Ever yt
imeanewt ransactionhappens ,
itwil
lneedtobeaddedt ot hec ryptocurr
enc yl
edgerorbl oc
kchain.
Transacti
onsarethenaddedupunt i
lthereisenought or eachwhat
isknownasbl ockstatus
.Thent hisblockissentofft omi ners.

Thi
spr ocesshappensonmanymi ningc omput er
s ,allconnec t
edt o
as ingle peer to peer net wor k.Mi ners uses pec ialhar dware,
sof
twar eanddat akeysc all
ed‘ nonces ’toenc r
yptt hebl oc
kofdat a
i
ntoa‘ hash.'Ahas hisani dent i
ficat i
ons equencet hatincludesall
the bloc k data.Thi ss equenc ei s added t ot he bl ock whi ch
authent i
catesit
.Thent hebloc kisoffic ial
lyaddedt ot hebloc kc
hain.
Iti
snow par toft hepermanenthi storyoft hi
sc ryptocurrency.To
encour age peoplet o will
ingl
y ver ifyt he networ k,mi ner s get
rei
mbur sed for t hei
r effor ts wi t
h c r
yptocurrenc y when t hey
compl eteabl ock.Paymentc omesi nt heform ofc ryptoc oinsand
how muc hdependsont hec oinyouar emi ning.

Thi
ngst
oCons
iderBef
oreMi
ning

I
nit
ial&Ongoi
ngFi
nanci
alI
nves
tment
:

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
To be ableto mine you wi llneed to have a comput ers ystem
powerfulenoughtohandl et het ask.Whoeververifiestheblockfir s
t
getspayment,sothebett eryours ys
tem i
satout perf
ormi ngslower
miners,the more you wi llmake.You wi llal
s o need to pay t o
upgradeyourequi pmentr egul arl
y.Compet i
ti
oni sfiercef orsome
coi
ns,and peoplear ec ons tantlyupdati
ngt heirequipment .Thi s
inc
ludesyoursoftware,wallet ,andhardware.Stayont opofmi ning
newsandneverf eell
ikeyouc an’tchangeyourmi ndaboutt hec oins
youaremi ni
ng.

Ti
meCommi
tment
:

Miningisnotac as
ualtask.I
fyouaren’ttechni
cal
lyincli
nedyouwil
l
needt olearnabouthardwar e,t
hes pecificsoft
war eyourchosen
coi
nwi l
lneed,encrypt
ion,andbewi l
li
ngt omoni t
ort hecondi
ti
ons
ofthemar ketf
orthecoinyouar emining.

Bi
tcoi
nvs
.Al
tcoi
ns:

Bitc
oinshavebec omever ydifficulttomi neforindividualmi ners.
Entir
e mi ning pool shave been c r
eated forthe sole purpos e of
miningBi tcoins,and t hediffic ul
tylevelofBi t
coin hass urpassed
whatan i ndi
vidualmi nercan achieve.The hardwarec os talone
couldpr ovet obet oomuc h.Youdohavet heopti
onofmi ni
ngan
alt
coint hough s uch as Litec
oin.The di fficultylevel,har dwar e
requirement s,andpowerc onsumpt i
onus agearegener al
lylessand
thepayout shighenought hatiti
swor ththeeffor t
.Choos ewi s
ely;
theremaybes ignificantl
yfewertransacti
onsforlesspopul arcoins.
Doyourr esearc htos eewhatc oi
niswor t
ht heeffort.

Mi
ningPool
s

I
fyous
til
lhopet
omi
neBi
tcoi
nsorar
en’
tqui
ter
eadyt
omi
neal
one

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
thenj oiningami ningpoolist her ecommendedpat htotake.When
mi nings olo,payment sareonl yawar dedwhenyouar et hefir s tto
validateabl ockorwhat everot hermi lestonet hatcoi
nhas .Ifyou
aren’tthefir st,youreffor tsgounr ewarded.I fyouarec ompet ing
aloneagai nststrongermi ningc omput ers,youmayneverr ec eivea
payment .Thisi swher eminingpool scomei n.Usersbandt oget her
to mi ne asa gr oup,and al lpayment sar e divi
ded amongs tt he
group.I ti ss pl
itbas ed on how muc hc omput erpoweryou have
beenc ont ri
buting.Asyouc ans ee,thi
si ncreasesyourc hanc esof
payout s.

Gener all
y,eac haltcoinhasdi fferentmi ningpools.Somepool swi l
l
actuallys witchbet weenc urrenciesbasedont hatcoin’
spos i
ti
oni n
themar ket.Tofindapool ,youc anfindt hec ommuni tysit
efort he
coinyouar ei nt
erestedi npl acesli
keReddi t
.Whendec i
dingwhi ch
poolt oj oint hereares omei mpor tantques ti
onsyouneedt ohave
answer ed.Howl onghavet heybeeni nexi st
ence?Whatf eesdothey
char ge? Do t hey divide c oins by comput er power or anot her
meas ure?On,aver agehow of tendot heyfindbl ocks?Whatar et he
reviewss ayingaboutt hem?Whatwaysc anyouwi thdraw?

WhatYouNeedt
oGetSt
art
ed

Whatyouneedt ogetstar
tedmi ghtvarybetweenc oi
nsbutl et
’s
assumeyouwouldli
ketostartmini
nganal t
coinsuchasLitec
oins.
Hereisagener
all
is
tofwhatyouwi l
lneedtoacquir
et omaket hat
happenaft
erwecoverafew oftheserequi
rementsinalit
tl
emor e
detai
l.

1 Awal
let
:Thisi
sapas
swor
d-pr
otec
tedc
ont
ainert
hats
tor
es
yourc
urr
ency.

2 Mi
nings
oft
war
e:Thi
sisf
ree,andf
orLi
tec
oinyouwi
llneed

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
CGmi
nerandSt
rat
um.

3 Miningpoolacceptance:Assumingyouwouldl
iketojoi
na
pool,whic
hisrecommendedf orbeginner
s;wor
kingtoget
her
i
ncreasesyourchancesofearni
ngc oi
ns.

4 Regist
erwithacr yptocurrencyexchange:Thi siswhereyou
wil
ltradeyourminedc oi
nsintoanothercryptocurrencyorfiat
money;notallexchangesacceptallc
rypt
oc ur
r enc
yt ypesand/or
exchangeforfiatmoney.

5 Thebes tinter
netyoucanaffor d:Youwil
lneedareli
abl
eful
l
ti
meandf astconnect
ionspeed.I
fyouli
vei
nanar eawheret
hisi
s
difficul
t,mini
ngmi ghtnotbepossi
blef
oryou.

6 Acoolspace:Yourmachinewi
llgiveoffheat,andthi
sc ouldbe
alotinsomecases.Youwil
lneedas potinacoolbasementor
otherconst
antl
yair-
condi
ti
onedspacet ohel
pkeepyours ystem
fr
om overheat
ing.

7 Yourmi ni
ngcomput er:Yes ,youc anus eyourregular
comput ert ostar
tmi ni
ng,butyouwon’ tbeabl etodoanyt hi
ng
elseoni twhi l
eyouar emining.Instead,useadedi cat
eades ktop
orc ust
om- bui
ltc
omput ertomi ning.For gettr
yingtous ealaptop,
tablet
,cellphoneorgamec onsolet omi ne.Theyaren’tpowerful
enought obeeffec t
ive.

8 AGPUorASI CChi p:AGPUi sagraphic

spr ocessingunit ,and
anASICc hipi
sas peci
alprocessi
ngdeviceuseds pec i
ficall
yf or
mining.Thisi
swher eyourpocketbookisgoingtot akeahi t.The
costwil
lbeanywher efrom $90us edto$3000new f oreac hGPUor
ASI
Cc hip.TheGPUorASI Cwi l
ltakecareofthepr ocessesneeded
i
nmi ningvali
dat
ion.Withthegr owingpopular
ityofmi ning,t her
e

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
beensuppl
yshort
agesofbot
hsoyoumi
ghtnotbeabl
etofind
ei
thert
opurchas
e.

9 Afan:Likewement i
onedbeforemininggeneratesalotof
physi
calheat.Youwil
lneedas t
rongfantoconstantl
yblow ai
r
acr
ossyourc omputer.I
fyoucanmanaget ogetac asewith
multi
pleheavy-dut
yfansbuil
tinthatwouldbeabonus .

10 Ti
me:Thi sisn’
tsomethi
ngthatyous etupt orunonyour
comput er
,andyous tepaway.Thebes tminersspendhoursever
y
weekc onstant
lylear
ningaboutongoingtechnologyimpr
ovements
andhow t heycanimprovethei
rminingper f
ormanc e.

TheHar
dwar
e

Let
’sdiveal it
tl
edeeperont hetopicofmininghardware.Youwil
l
needtodec idewhetheryouaregoingtous eaCPUmi neroraGPU
miner.Somemi ni
ngs of
twareisspecifical
lydesi
gnedtous eyour
comput er process
or (CPU), and others are meant to your
comput er
sgr aphi
csproces
sor(GPU).

I
tist ruet hatGPU mi nersar emor eeffic i
entt hanCPU mi nersbut
onlyi f you have a di screte graphicsc ard.Many pl aces will
recommendt hatyouus eAMD c ardsforaltcoinmi ning.Beawar e
that suppl i
es might be l i
mi t
ed,and t hes e prices mi ght have
i
nc reaseddr amati
call
ybec aus eofthisdetai
l.Ifyouar epl anningto
mineonal esspower fulcomput erwi t
hint egratedgr aphics,then
useaCPU mi ner.You ar egoi ngto need to wat chtheheatand
powerus agefrom eit
hers etup.Therearediagnos t
ict
ool savailabl
e
spec i
ficall
yt omonitorcommonmi ningissueslikethos e.

ASI
C boar
dsar
emeantt o mineBit
coin pr
imari
lybecausemany
al
tcoi
nsuseadiffer
entminingal
gorit
hm call
ed ‘
scr
ypt’t
hati
sn’
t

Cr
ypt
ocur
renc
yTr
adi
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ypt
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.i
o//ByAedanKel
ly
Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
 Chapt
er5:

Tr
adi
ngSt
rat
egi
es

To s tar
ttrading,ever yperson needst othink aboutwhatt hei
r
tradings t
yleis.From thereyouc annarrow downs omec ommon
strategi
est hatsuiteyourstyleandt henwithexperience,bui
ldon
them.Ther eares omegener alfactor
stoc onsi
derwhen you are
tryingtonar row downwhats tylefitsyoubes ts
uchas :how much
money you have t o work with,the amountoft ime you have
avai l
abl
et odevot etot r
ading,theleveloftradi
ngexper i
enceyou
have,andyourl evelofri
sktolerance.

Somes trat
egiesrequiremoreti
met hanot her s.Passivetraderscan
spendaf ew hour saweekont heirinvestment sorevens tepaway
compl etelybyhandi ngthewor kovert oac ryptocurrencybr oker.
Scalpt r
adi ngwhi chisa short
-term strategyr equiresa f ull
-t
ime
commi t
mentandever yminuteofat radings essi
oni sspentac ti
vely
managi ngt rades.Youalsodon’thavet os ti
ckt oones pecifictype.
You maydec idethatyou arec omfortableus ingmor et han one
style.Int hiss ect
ion,we wil
lgo overbot h ac t
ive and pas sive
strategi
es .

TheAct
iveTr
ader

The ac ti
ve traderisf ocused on s hort
-term financialgai
n.They
typical
lydon’tholdindivi
dual curr
enc i
esforlong,sotheydon’
tneed
toc onsiderlong-t
ermt r
ends .However ,itiscr
iti
caltheset
ypesof
traderss pend a c onsiderable amount of t ime us i
ng char
ts,
researching and staying on t op ofthe news i nthe marketto
under standwhatwi llhappeni nthes hortterm.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
ThePas
siveTr
ader

Apas si
vet raderi smor ei nterest
edi ninves ti
ngf ort hel ong-t
erm
andr el
iesont heage-oldt hinkingthatmar ketsevent uallyalwaysgo
up.Ac ti
ve t rading r
equi resc onstantc ommi tment ,buta pas si
ve
traderdoes n’twantt os pendt heirfr
eet i
mes tudyingt hemar kets,
trendsand ot herfactorst hatc an influenc et he c ryptocurrency
mar ket
.Ins tead,theyc reateapl an,dot heiriniti
alres earch,invest,
thens i
tbac kandwai t–onl ymoni t
oringoc casionally.Asl ongas
theircoinsdon’ tdec r
eas ei n value to ac ertai
nl evelt heyhave
predetermi ned,t heywi llleavet heirinvestment sal one.Thi sisa
strat
egyf ort hosewithpat i
ence,ar enotaggr essi
veandnotl ooking
forquickr eturns .

Whywoul daper s
onwantt ous ethisl ong-terms t
rategyinaqui ckly
changingmarketl i
kec ryptoc urr
enc i
es ?Themai nadvant agei sthat
overthelongt ermi ftheymanaget heirpor tfoli
owel landkeepa
l
evelhead,therear egreat eroppor tuni t
iesf orpr ofit.Thekeyi st o
setabalance.Yous houl dn’tcompl etelyi gnor eyourpor t
foli
o;you
need to peri
odi c
allyr e-evaluatet he per formanc e and c onsider
l
ong-term mar kett r
ends .Butal s o,don’ tgeti nt he habi tof
const
antlychec ki
ng yourpr ogress.Thi smar ketdivesand s oar s
drast
ical
lyinsomet i
mess hor tperiodsoft i
me.You maybec ome
uneasywi t
ht he c onstantc hangesand s ellatt he wr ong poi nt;
abandoningyourl ong- term planf ors hor t
-term gainst hatar ef ar
l
ess.

Act
iveTr
adi
ngSt
rat
egi
es

Atthi
spoint,you maybe formingan i
deaofwhet heryou lean
towar
dbeinganac ti
vet
raderorapas s
iveone.Keepinmi nd;you
don’
tneedtobeoneortheother.Youmayc hoos
etoinvesti
nsome
coi
nsforthelongterm and haveasmallerporti
on t
o usein an

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
acti
vetr adings tr
ategy.Forac ti
vet rading,therearetypicall
yf our
common t ypesofs tr
ategi es.Swing t r
ading isshort-
term wi t
ha
holdi
ngper iod ofaf ew dayst o af ew weeks.Dayt radingi san
aggressiveform ofs hort-termt r
adi ngandonl yshouldlasttheday.
Nothing s hould be active overnight .Scalptradi
ng isby f art he
shortesttermt radingstyle;youc ouldpos sibl
yholdac oi
nf oronl ya
fews ec
ondst oaf ewmi nut es.Let’
sgoovers ometradingst r
ategies
forbothac t
iveandpas sivet r
ader s,thenyouc andecide.

DayTr
adi
ng

Thisist hemos twell-

known f orm ofac ti
vet r
adi ngand i nvolves
buyingands elli
ngc ryptocoinsont hes ameday,neverover night .
Dec i
sionsar eus uall
ybas edont ec hnicalanal ysis,notf undament al
analysiswhi chi swhatpas sivet rader swoul dl ookatfir st
.Thes e
typesoft rader shavet hepot entialtomakeorl os ecoinsqui ckl y.
Theyat temptt opr ofitfr
om t hedai lypr ic
ec hangesofas pecificc oin
theyar etradingi nbymaki ngmul ti
plet radest hr oughoutt heday,
usuallyinbat c
hes .Note,thisi sas trategyf ort hosewhohaves ome
exper i
encei nthemar ket.Youwi llneedt odevot ealmos tfull
time
hour stothist askduet othet i
meneededt or es earcht hef actor s
thatinfluenc et he mar ket,per f
or m t he pr operanal ysisins hor t
periodsoft imeandi mmedi at el
ybeawar eofanyi nt
errupt i
onsl ike
powerout ages.

Swi
ngTr
adi
ng

As wi
ngtradert akesadvantageofprices wi
ngsthatares hort
-ter
m
butlastaf ew daystoaf ew weeks.Unlikedaytrading,youwoul d
holdyourc oi
nsovernightduringthi
stime.Whenas wingtradercan
seeatrendf or
mi ngorbreaking,t
heywi l
lsetupt
heirt r
adesandget
i
nt oposi
tion j
us tbef
orei tispredi
cted tohappen.Swi ngt r
aders
creat
eas etofr ul
esbasedonbot hformsofanalys i
s-t ec
hnicaland

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
fundament al.Theserul
esar edes i
gned to helpthet raderbet ter
pinpoi ntwhent obuyands el
l.Swingtradersc anwor keffec ti
velyin
bot h upwar d and downwardt r
ending mar kets
,buta s ideways
mar ketisriskyf
orthem.Thisstyl
edoes n’talwaysrequirec onstant
attent i
onl i
keadayt r
aderwoul dneedt o.Sot hoseindivi
dualswho
arec omf ort
ableperf
orminganal ys
is,aregoodats pot t
ingt r
ends
andhavet hepart-
ti
mehour stodevot etot r
adingdowel lwiththis
style.

Scal
ping

Scalpingi sthef astes tpac eds trategyofal lac ti

vet radi ng.Iti
nvol ves
maki nghundr edsoft radesperdayt ot akeadvant ageofs mall price
differ encesus ual l
ybet weent hebi dandas kpr i
c es .Thiswor ksby
buyingatt hebi dpr ic eands elli
ngatt heas kingpr ic et orecei
vet he
differ encebet weent het wopr ic
epoi nt s.Sc alper si deal l
ydon’twant
tos t
ayi nt hesepos i
tionsl ongasi tgreat lyinc reas est heirri
skifthey
do.They al so don’ tt ryt hiss t
rategy wi thl ar ge vol umes or
differ encesi n price.Theyf oc uss pec i
fic all
yon s mal lmoveswi th
smal lvolumesbutmor efrequent l
y.Us ingt hiss trat egymeanst hat
theirpr ofitpert radei ss mallsot heyf ocusonmor ei ndemandc oins
thatwi llt
rademor eof tenthanl esserknownc rypt oc urrenci
es.Thi s
strategyisc onsider edver yriskybec aus eyouar er elyi ngonwi nni ng
alotoft radest hatgi veyouenoughpr ofit .Pr ecisionandc ons tant
attentionar er equi redf orthist radings t
r ategyasonl yoneort wo
wrongmovesc anwi peoutal lyourpr ofitf ort heday.

Pos
iti
onTr
adi
ng

Posi
tiontradingissometimescons i
deredt obeapas s
ivebuyand
hol
ds t
rategyand notpartofac t
ivet radi
ng.However,thereisa
di
ffer encebetweent hetwo.Thetypicalbuyandholdstrategyonl
y
i
nvolveshol dtradesforverylongper iodsofti
meand t herefor
e

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
profiti
ngf rom thebel iefthemar ketalwaysr i
ses.Pos i
tiont r
ader s
canus ebot hlongands hor t-
terms tr
at egies.Positi
ont rader sus e
l
onger-ter mc har t
swi thot heranal yti
cmet hodst oidentifyt rendsi n
themar ket.Dependi ngont het rend,t hist ypeoft radec ouldl ast
days,weeks and s omet imes l ongerwhi chi s why i tof ten get s
confusedasapas sivet radings trategy.Thes etrendt r
ader slookf or
trendsignal sl
ikehigherhi ghsandl owerl ows .Onceat rendi sf ound
they willpos i
ti
on t hems elves toj ump on onc et he t rend has
establ
ishedi t
selfandwhent het rendendst heywi l
lexi t
.Thi sway
they benefit f rom bot ht he up and downs i
de of t he t r end
movement .However , whent hemar ketisver yvolati
le,asi nthec as e
withmanyoft heal tcoins,thiss tyleoftr adingi sdiffic ulttopul loff,
andpr ofit sarelower .

AnAct
iveSt
rat
egyt
oAvoi
d:ThePumpandDump

A‘ PumpandDump’ isas cam s trat

egyt hatisill
egali nanymar ket.
However ,ac ryptocurrenc ymar ketises peci
all
yvul ner abl
et othem
bec aus ei ti
shar dt oenf orc ethel aw onadec ent rali
zednet wor k.A
pumpanddumps cam requi ret wogr oupsofpeopl e. Thes c
ammer s
buyal ar geamountofac heaperc oinoveraper iodt hanasagr oup,
i
nc reas est hepr i
c ebypr omot ingi t
.Asexc i
tementar oundt hecoin
bui l
ds,t hes oont obevi cti
ms ,buyt hiscoinbeli
evi ngt hatanupwar d
trendi sdevel opi
ng.Tr adingvol umei ncreasesandt hevalueoft hat
coingoesup.Onc ethec oinr eac hesthepointt hes cammer sdesire,
theys ell all
theircoins.Ever yoneel s
ewhos eest hisof tenpani c
sand
begi ns t os ell
,s ending t he c oinc rashing downwar ds.Of ten
ever yoneel sebutt hes c
ammer slose.

How t
oDet
ectaPot
ent
ialPumpandDump

Ther
ear
eafew s
ignst
hatac
oinisgoi
ngt
obeus edi
napumpand
dumpsc
heme.Youmaynoti
cethepri
cei
sfal
li
ngandther
ewi
llbe

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
l
ittl
er iseseac htimeas cammerbuys .Theydot histol oadupont he
cheapc oinwi thoutanyonenot i
cing.Onc etheyhaver eac
hedt hei
r
des i
red amountofc oins,the pr omot ing beings.They wi lluse
sever aldifferentac count stodot his,
andt heremaybeal argegr oup
ofi ndividual
si nvolved.Theywi l
lhead overt of orumsand ot her
publ i
cpl aceswi t
hint hec ryptocurrenc ycommuni tyandheavi lytal
k
up t heirc oin.They c ontinue to do t his unti
lt her eis enough
moment um and peopl es t
art buyi ng.Thi sfeeds t he lies the
scammer saret ell
ingever yoneanddr i
vest hepr iceup.Onc ei ti
s
highenought heywi lls
ell smallamount sofc oinsasf astastheyc an
withouti mpac ti
ng pr i
ce.You wi l
ls ee a gr eaternumberofbuy
transac ti
onst han s el
l,butt hes elltrans actionswi l
lbes mal land
cons i
s t
ent .Thes e arei ndicat
ions a pump and dump s c am is
happeni ng.

Pas
siveTr
adi
ngSt
rat
egi
es

TheBuyandHol
d

Abuyandhol ds t
rategyi stheepi t
omeofapas sivet radings trat
egy
andi nvolveshol dingc ryptoc urrenciesforlongper iodsoft ime.Thi s
isoftenwhyt hisiscons ideredt obei nvesti
ngr athert hant rading. As
the c r
ypt ocurrency mar ketmat urest hisc ould event ual l
y mean
holdingf ordec adesj ustlikei nt r
aditi
onalinves ti
ng.Thi swayt he
buyand hol di nvestorc an r i
deoutt hemanyr oundsofmar ket
volatil
it
ywhi c
hc anbever ys everewi thcryptoc urrenc i
es .Youwi l
l
rel
yheavi lyon f undament alanal ysi
sand on oc cas ion,t echnic al
analysistoc onfir m yourc hoi ces.Thereareaf ew stepsi nvolvedi n
thi
ss trategy.

Fi
rst
,youneedtodetermineyourinvestmentobj
ec t
ives
,ti
meframe
andris
ktoler
ance.Askyoursel
f,ar
eyous avi
ngforabi gpurchase?
Wil
lyou need t
hemoneys oonerr at
herthan l
ater?Perhapsyou

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
woul dli
keyourc rypt ocoinstobepar tofyourreti
rementpor t
foli
o
alongwithyourot hermai ns t
ream i
nvestments.Wher eyouareatin
yourlif
epl aysapar tinthi
saswel l
.Theyoungeryouar e,
thegr
eater
ri
s kyoucant olerate,andyouc anfocusongr owth.Ifyouareolder,
youwi l
lhavel esst oleranceforri
skandmaywantt of ocusonbeing
abletodr aw coinst os upplementyourincome.

Second, youneedt oc hooseyourc ryptocurrencymi x.Youwi llwant

to eventually nothave al lyourmoney t ied up in one t ype of
cryptocurrency.Diversif
ying allows you t o pr otectyourover all
portfoli
o.Youmaywantt ohaveal argerpor ti
onofyourmoneyi n
coinst hathave proven t hems elvess uch asBi t
coins,Et
her ,and
Li
tec oi
n.Then have a s mal l
erpor ti
on in youngerc oi
nst hatar e
doingwel linthemar ket.Final
ly,youmaybei nterestedininves ti
ng
a ver ysmal lamounti n an ICO ornewl yr el
eas ed coi
n wi th no
mar kethistory.

Thefinalpoi nti
sthatyous houldinvestregularl
yandr emembert o
review yourpor tf
oli
oatl eastannuallytor ebalancei fneeded.As
you gain experience and understand t
he mar ketmor e,you c an
choos etoi nvestadditi
onalmoneyi ntocryptoc urrenci
est obui l
d
yourpor tf
olio.Youwi l
lbeabl etohavebi ggergai nsandt herefore
meetyouri nvestmentgoalswi t
hinyourt i
mel i
ne.Onc eayear ,you
willrevi
ew yourobj ecti
ons,theper f
ormanc eofyourpor tfol
ioand
adjustasneededdependi ngonyourl i
fecircums tances.Youmi ght
evenc onsiderdoingthisonas emi-annualbas i
swhenyoufir ststart
toens urethatyouhavemadet her i
ghtselecti
onswi t
hyourc rypto
coins.

Emer
gencyTact
ics

Anyt
rader
,regar
dles
soft
hei
rski
lll
evel
,isc
apabl
eofl
osi
ngal
lof

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
theirprofit
st heyhaveearnedthei
rentiretr
adingcareeri
njustone
ort wobadt rades.I
fyouar econsi
deringusingsomeoft heacti
ve
trading str
at egi
es we have r eviewed in t hi
s eBook t hen
under s
tandingyouropti
onst omini
mi zeri
skiscri
ti
cal.

St
op-
Los
s&Take-
Profit

Usingstop-lossandt ake-profitpointsaretwowayst oplanaheadi n

yourcryptoc urr
enc ytr
ading.Thesear ethetwobes twayst oremove
emot i
onf rom ac t
ivetradingwhi c
hi sthemai nr easonpeopl el ose
out.They al l
ow f ear or overconfidenc et or ulet heirt rading
decis
ions.Fearwi llmake you hol d on toc oi
nsl ongert han you
should,l
osingmor ethanyouneededt o.Greedandover confidenc e
wil
lmakeyou hol d on toc oinstryingto getmor epr ofit,whi ch
usuall
ymeansyouwi l
lonlysellwhent hepr i
cebeginstof all
.

As t
op-losspointist
hepri
ceyouar ewil
lingtos ellatandtakeal oss
ont hetrade.Thiscoul
dhappenf ormanyr easons ,i
nt heend,t he
coindidn’tperfor
m asyouhoped,andas top- l
osswi l
lpreventyou
from holdi
ngont oabadcoin.Atake-
profitpoi ntisthepr i
ceyouar e
will
ingtosellacoi
nandtakeapr ofit.
Thisli
mi t
syouf r
om holdingon
toolongasment i
onedbefore.

Set
tingSt
op-
Los
sPoi
nts

Tos etyours t
op-l
ossandt ake-profitpoints,youwi llneedt ouse
botht ec
hnicalandf undament alanalysi
s.Movi ngaver ageswhich
arecoveredinalaterchapterarethemos tpopul arwayt os ett
hese
pointssincetheyareeas yt oc al
culateand wi delyus ed.You will
applythem toyourcoinschar ti
nac harti
ngpl atf
or m ofyourc hoi
ce
andus et hekeymovi ngaveragesof5,9,20,50,100and200- day
averages.Thenyouwi l
lbeablet oseeifyourcoinhasr eactedtoany
ofthesepointsaseitherasuppor torresist
anc elevel.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
TheFi
nalSt
ep:Cal
cul
ati
ngExpec
tedRet
urn

In ordert o usestop-l
os sand t ake-profitpoi
nt s,you willhavet o
cal
c ulatet heexpectedr eturn.Thef ormulausedi s:[(
profitabil
it
yof
gain)x( takeprofit% gai n)]+[ (profitabil
it
yofl oss)x(stoplos s%
loss)]
. Thisformulacalculatestheexpec tedret
urnf orthatparti
cular
coin.Thi sf ormulaisveryi mport anttouseasi twillhelpyout hink
yourt r adest hr
ough,al l
ow yout ocompar ecoinsands electthat
onest hatmaket hemos tpr ofit.

Shor
tSel
li
ng

Shor tsell
ingal l
owsyout obor row acryptocur r
enc yfr om aper son
oror ganizationands el
litatt hec urr
entmar ketprices .Your ecei
ve
moneyt ot henbuyt hec ryptocurrencybac katal aterdat e.Bitcoi
ns
aret hemos tc ommonc oinus edf orthi
st ypeofac tivit
y.Thet ri
ck
herei sthatyouneedt obuyt hes amec urr
enc ybac kwheni ti
slower
thanyoupur chas ed.Thiswi l
lal
lowyout orepaywhatyoubor rowed
ands t
il
lhaveapr ofit.Let ’
sr unthroughas implifiedexampl e.You
borrow onebi t
coi nands ellitwhent heuni tpriceis$3, 000ont he
mar ket.Younow have$3, 000inyourwal let.Youwai tunt i
ltheunit
pric
edi pst o$2, 000,buyt hecoinbac kthatyouowed,r eturnthe
Bitc
oi nbac kt othebor rowerandyoukeept hepr ofitof$1, 000.

Under
standt
heRi
sks

This met hod oft rading s

ounds appeal i
ng and an eas y way t o
recoverl oss
esyou have al readyi ncurr
ed ormake l arge profits
quic kl
y.Whichitc an,however ,iti
sc onsi
deredahi gh-risktrading
style.Ifyou arenew t otrading,you maywantt o waitunt i
lyou
bec ome mor ef ami li
ar witht he cr
yptocur
r ency mar ketbef ore
attempt i
ngthistradingmet hod.Wi t
hnor malt r
ading,youonl yc an
l
os ewhatyouputi n, buti
ns hortsel
li
ng,yourlossescangobeyond

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
whatyoui nit
ial
lyhaveputi ntothemar ket.I
fyoudon’ treadort i
me
themar ketr i
ght,yourc oi
nmi ghtgoupr atherthangodownwhen
i
tisti
mef oryout obuy.Let ’susethepr evi
ousexampl etoi
llustr
ate
thi
spr oblem.Asbef oreyouboughtonebi t
coinands ol
ditwheni t
was$3, 000.Your eceivedthe$3,000i nyourwal l
et.Youwai tforthe
pri
cetogodownbuti nst
ead,itgoesupt o$4,000.Ifthebor rower
cal
lsthel oannow andyoumus tinvestanother$1, 000inor derto
buythec oi ntoreturnt ot
hebor rower .

Inshortselli
ng,thebor rowerc ancallt
hel oanatanyti
me,andt hey
arerequiredonlyt ogiveyous hortnoti
ce.Thismeanst heymaydo
thi
sbef or
et hepr i
cedr ops !Makes ureyour eadanyregulati
onsor
guidel
inesf orcoveri
nganyc oi
nsyous hortsel
l.Onl
yi nves
tifyou
areveryconfidentt hepr i
ceswi l
ldropandi fyouhavethemoneyt o
coveranyl osses.

St
illI
nter
est
edi
nShor
tSel
li
ng?

I
fyouar ec onfidentinyours kill
s, t
henyouc antryshortsell
ingwit
h
Bitcoins.There aret rading agenc i
esand pl atfor
mst hatwi lls
ell
Bitcoins f
r om their own s uppl y.CFD ( Contractfor Difference)
trading platf
ormswi l
lallow s horts ell
ing,Bit
coin exchangesli
ke
Kraken offert his option as wel l
.Pi c
k a borrowerwi t
h a good
reput at
ionandmanageyourc oinswel l.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
 Chapt
er6:

I
CO’
s(I
nit
ialCoi
nOffer
ing)

Whatar
eICO’
s

An Init
ialc oi
n offer ing( I
CO)i sat ypeofc rowdfundi ngorc rowd
i
nves ti
ngt oolus ingc r
yptoc urrencyandmos taredonec ompl etel
y
ont opoft heEt her eum bl ockchain.Byus i
ngas martc ontr
act, Ether
orBi t
coini sc ollectedandi sexchangedf ort henew t ypeoft oken.
The pr oc esst akespl ace ent i
relyP2P wi thoutanyexc hangesor
brokers .Iti sc ommonl yus ed asas our
c eofc apitalfors tar t
-up
compani esandt of undt hedevel opmentofnew c ryptocurrenc ies
.
Compani esc anpr eselluni t
soft henewc rypt
oc urr
enc yortokensi n
exchangef oralreadyes tablis
hedc ryptoc
ur r
enc i
eslikeBitcoinand
Ether.

Thec ampaignpr ocessusuall

ys tar
tsoffwi t
ht hepresentationofa
whitepaper.Thiswhitepaperpr ovi
desallt
hekeyi nformations uch
asthebus i
nessmodeldet ai
ls,thetechni
cals peci
ficati
onsoft he
proj
ec t
,thepr ojec
ttimeline,thetargetbudgetwher et heydet ai
l
how t he futuref unds wi l
l be used and final ly di
s t
ributi
on.
Dist
ributi
onisakeyar eatoinc l
udeinyourr esear
chasi ttell
syou

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
abouttheavai
labl
et oken suppl
yand how manyc
oinst
het
eam
i
ntendstokeepforthemselves.

TheShor
tHi
stor
yofI
COs

I
niti
alcoinoffer ingsar esti
llanewc onc ept ,however ,onAugus t7t h,
2017 CNBC r epor t
ed t hati ni
ti
alc oin offer i
ngshave r ai
sed $1. 2
bil
li
on and now s ur passear l
y-st
age vent urec apit
alf unding f or
i
nternetc ompani es .Thisisani mpres siveac hievementc onsi
der i
ng
thefirstpos sibl
eI CO wasf orRippleinear ly2013,andi nlate2013,
Mas t
ercoinr an t heirown I CO campai gn.The Et her eum pr oject
brokeal lcrowdf undi ngr ecordsto dat ei n 2014wi thin a4week
peri
od. TheEt hereum bl oc kchai
nhasc omet opl ayaver yimpor t
ant
partinthegai ningpopul arit
yofICOsasi t
’spl atform hass implified
the process ofi s suing tokens.Thi st ec hnol ogy can be di rectly
rel
atedt other ecor dingbr eakICOst hathaveoc c ur
redi n2016and
2017–t hemos tnot ablewaswhenapr oj
ec tcalledTheDAO whi ch
wasabl etor ais
e$150mi lli
on.

CI
O VSCr
owdf
undi
ngVSI
PO

I
COshave common t r
ait
swith bot
hc rowdf
undi
ng and IPOsto
whi
chtheyar
eoftencompared.
Whi l
etheydoshar
etr
aits
,theyend
upbei
ngmor eahybr
id.

ICOsand I POs( I
nit
ialPubli
cOffer i
ng)bot h offert heiri nves t
ors
pot enti
alfutur
epr ofitbutalsopotentialri
skandf ai
lure.AnI PO wil
l
sellastakeintheac t
ualcompanys ot hatinves
torshaveapor tionof
owner ship.Mos tICOstodat ehaven’ts oldwhatarec al
ledt okens
thatac tasas takeintheplatf
orms .Theonl yexceptiontot hatrule
wasi n 2016 when the DAO campai gn offered tokenst hatwer e
attachedt ovotingri
ghts.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
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Also,anI CO i
ss upport
edbyt hosewhowantt oinves
tear l
yina
produc torservi
cethathas
n’tbeenl aunchedyet .Thi
smakest hem
differentfrom IPOsandmor elikecr owdfundingc ampaigns.Then
again,crowdfundingusual
lyisbasedondonat ionswhileinvest
ors
i
n an I CO hope to gai
n areturn on theirinvestment.ICOsar e
thereforeami xbetweenadonat i
onandi nvestment .

Law &Regul
ati
ons

ICOsar es til
llargelyunr egulated,andt hi
sisadanger ouss i
tuati
on
for investor s who l ack educ ati
on.Ci rc
ums t
anc es ar ec hangi ng
rapidly bec ause oft he extreme s uccess ofI COs l ike The DAO
bringingI COsandt hec ryptocurrencymar keti nt
ot hel i
ght.Ther e
aregeogr aphicar easwher etheyar eregulateds imi larl
yt othatof
shareands ecurit
iess al
esal t
houghenf orcementi ss ti
llachallenge.
Standar ds,regulations ,
andl awsmayhel ptopr otec tbot hinvestors
and ent repr eneurs.However ,itwi l
lmos tlikelyc omewi ths ome
negat i
vess uc h ast hec os tand effor tto meetc ompl i
anc ec ould
reduc etheadvant agesofanI CO overregularf undingopt i
ons .

I
CO Types

Duet othelac kofregulati

onsment ioned above,developersand
start
upcompani escanr unICOsi nanywayt heychoose.Thishas
l
eadt oavarietyofdi
fferentappr oac
hesonhow c ampaignsarerun
andmakesi tver ydi
ffic ultt
oc overeachs i
tuati
on.Somec ommon
typesofpric
inghavebegunt or i
seabovet her est
.Wewi l
lrevi
ew
theseopti
ons .

Price wi
llincr
eas e:TheICO issetup t
or un i
ns tages,and t
he
exchangeratefortokensi
sinc
reasedwit
htime.Earlyinvest
orswho
tookthebiggestri
skgetthebestpri
cepercoinr
atio.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Pri
cewi l
ldecrease:TheGnos i
steam i
ntr
oduc edtheDutchauct
ion
methodwher ethes al
estart
satt hehi
ghes tpri
cepertokenandis
l
ower edunt
ilt
her eareenoughbidstosellallt
okens.Al
lthet
okens
ar
et hensol
datt hatpri
ce.

Priceisfixed:Inthisscenario,alltokensares oldatthesamefixed
pri
c e.Invest
ors find this an appeal i
ng met hod becauselar ge
i
nves tmentswil
lnotgenerallyinfluenc ethepr i
ce.Aft
ertheoffer ing
ends ,i
tisnotunusualfortheret obeaper i
odwher etheinvestors
arenotal l
owedtot r
ansfertheirc oins.Aft
erthiscool
ingoffper iod,
exchangesc an l
istthe t
oken and have ot herpeopl etrade i
tat
mar ketpri
ce.

Price isnotdet ermined:Thishappenswhen the development

team orstart
-upcompanydec i
denottosel
latafixedpr i
ce.
Instead,
theyc oll
ectwhateveramounti nves
torschoose and atthe end
distr
ibutenew tokensinproport
iontotheamountgi venbyeac h
i
nves tor
.

Res
ear
chi
ngI
COs

TheWhi
tepaper

Insteadofat radi
ti
onalbusi
nesspl anorf ormalprospect
us,ICOs
uset echni
calwhit
epapers.Awel lwritt
enI CO whi
tepaperwil
ltel
l
you a good dealoft he i
nfor
mat i
on you need to know before
investi
ng.They shouldcover how t he plat
form willwork,the
potentialuses
,theICO pri
cingstructure,thedevelopmentplans
usingtheICO proc
eeds,et
c.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
TheWebs
ite

Whet heritisal andingpageoraf ullwebsite,everyICO willhave

somes ortofoffic i
alonlinepresenc e.Don’tbef ool
edbyaflas hy
layoutands moot hmar ket
inglanguage–t heymeanver ylittl
et o
yourr esearch.Ifac oinorICO webs it
e/l
andingpageeas i
lyprovi des
youwi thagooddealofi nf
ormationt oans weryourques ti
onsi na
strai
ghtforwardmanner–t hatisagoods i
gn.Theys houldpr ovide
accesst otheirwhi tepaperand c ould have otherus efulli
nkst o
suppor t
ingi nformat i
on.Butifyou l eavef eeli
ngc onfused and/ or
nothavi nglearnedver ymuch,bewar e.

Soci
alMedi
a,Di
scus
sionBoar
ds&News

Thec ryptoc urrencymar ketandI COsar ebec omi ngaver ypopul ar

everyday t opic.You s hould be ablet o eas i
ly find infor
mat ion,
people’sopi ni
ons,exper treviews,et c.on a var i
ety ofdifferent
onli
nec hannel s.Reddi tand ot herc r
yptoc urrenc yforumsar ean
excell
entwayt odiscus samongs tenthusiasts,espec i
all
yifyouar ea
new t rader.You wi llfind plent yofi ndividualswho c an answer
ques t
ionst hatyoumayhaveors hareinfor mat i
ont hatyoumay
havemi ssed.Tr ytos eeiftheI CO hasanys ocialmedi achannel s
runningori ftheyshow upi nanyt hems elves.Themor eac t
ivethey
areon s oc i
almedi a,pr omotingand keepi ngt hepubl icawareof
theirdevel opment s ,the betteriti sfori nves t
orc onfidenc e and
researchpot enti
al.

I
CO Rat
ingWebs
ites

I
CO ratingwebsit
esar eaverygoodres
ourcetobeabl
etoc ompare
differentICOs,read ICO news,become aware ofany aler
tsor
cauti
onsandfinal ly,tofindICOst opart
ici
pat
ein.Hereareaf ew
opti
onst ogetyous t
artedl
is
ted:

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
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.i
o//ByAedanKel
ly
Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
 Isthei
nfopr ovidedf ulloffluff?Whenyoudoyourr esear
ch,
c
anyougett othef act
sori sitf
ullofhype?Themoremarketi
ng
j
argondesi
gnedt os el
lyout ypi
call
ymeansyous houl
dprobably
s
tayaway.I
fyouc anonl yfindawebs iteorl
andi
ngpage,you
s
houldavoi
dt hisoppor t
unity.

How doest hewhi tepaperr ead?Isitwellwrit

tenand
str
uc t
ured?Doesithandlewellagainstexperts
’opini
ons?Doesit
explai
nt het
echnologyindepth?Thes trongerthewhitepaper
,the
mor econfidencepotenti
alinvestor
swi l
lhave,andbetterthecoin
wil
lper f
orminthemar ket.

Whoisbackingtheproj
ect
?Ifthepr
ojectwasand/
orissti
ll
bac
kedbyprominenti
nves
tor
s,t
henthec oi
nwil
lappeartobe
morecr
edi
ble.

Whati stheCons ensusMechanism ofthecoin?Thisi

show
changestothedecentr
ali
zedsyst
emsar edeci
dedupon.Common
examplesareProof-
of-
Wor korProof
-of
-St
ake.Iti
sverygoodt
o
know how t
hecoinwor ks
.

Isthecoi ncentrali
zedordecentr
ali
z ed?Thisisabas i
cbut
i
mpor tanttoknow how t
henetworkisstruc
tured.
Crypt
oc urr
enciesaremeantt
obedec entral
izedinnature.
However ,cent
rali
zedcoi
nsdohavetheirownadvant ages.

Ist
hereadevelopmentplan?Youc angauget
hedevel
opment
t
eam’scommitmentbywhetherornotther
eisacl
eart
imeli
nef
or
t
hedevelopmentofacoi
n.

How muchmoneyhast heICO r

ais
edandhow muchwas
spent?Anyfinanci
ali
nfoons pendi
nghabi
tswi
lls
how youagr
eat
dealaboutt
heteam behi
ndt hecoi
n.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
 How di
fferenti
sitfr
om thenearestcompet
itor
?I ft
hecoi
ns
ar
eal
lthesame,t
hereisl
it
tl
einc
ent
ivetotr
ysomethingnew.

How strongi
sthet argetmarket
?Coi nst hatappealt
osmall
ni
chegroupswon’tbestrongi
nthemar ket.Thegr oupneedst
obe
l
argeenoughtosupportgrowt
hbuts t
il
lwel ldefined.

Anyl egalbar
rier
s?Thist
echnol
ogyisnew andalwayschangi
ng.
Thelegalandgover
nmentbodiesaresti
llt
ryi
ngtocatc
hup.So,
youneedt omakesurether
earenoi s
sueswiththecoinsyou
choose.

Foundi
ngTeam Member s?Thes uc
c essofacoindepends
largel
yonthecor
efoundi
ngt eam.Thisisimport
antregardl
essi
f
youar el
ooki
ngatanICO oramorees tabli
shedcoin.

Aretheyact i
velycommuni cati
ng?Themor eopenat eam
behindac oinis,t
hemor et heyappeartobec ommi t
tedandthe
l
ar gerthei
rdesiretosucceedappear s
.Dot heyopenlytal
kabout
theirdevel
opmentpr ogressands ti
cktothatti
melineoris
everyonepr et
tymuc hinthedar k?

How manycoi nswillt

hereeverbe?Manyc oinshaveafini t
e
suppl
y,andthi
smakesac oi
nhaveas tr
ongervalue.Al
lcoinswit
h
definedsuppli
eshavethati
nfor
mationpost
eds omeplace.Usuall
y,
youcanfindouthow bigthetot
alsuppl
yisandhow muc hhas
beenrel
easedsofar.

How manyoft hosecoinshavebeengi ventothef oundi ng

team?Thehi gherthepercentofcoinsgiventotheteam,t he
worseitl
ooks.Also,i
fmostoft hecoinsareownedbyaf ew
people,t
henthisisabadindicati
onaswel l.Thes
eindividualscan
easi
lymanipulat
emar ketpri
ce.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
 Whatisthemar
ketcapital
izat
ionofthecoi
n?Thi
siseas
il
y
f
oundonli
neonmanyexchangesit
esandist
hemeasureoft
he
c
oin’
sval
ue.

I
CO Launch&Par
tici
pat
ion

Let’
slookatt
heenti
reICO pr
ocess.Inthiss
ecti
on,wewil
lcover
whatneedstobedonebyt heICO team andyou;fr
om whenthe
ICO i
sannouncedal
lthewaytowhenyouc ashout.

I
CO Team:TheAnnounc
ement

Announc ement s us ually t ake pl ace withi

n c ryptocurrency
i
nvestmentc ommuni ti
ess uchasBi tcoi
nTalk,Reddit,ands i
mi l
ar
sit
es.Thepr ojectteam us uall
ygiveapr esentat
iontypicall
yont he
purpose of t he ICO pr oj ec
t along with a whitepaper ,ot her
document ation,timel ines,goal s and any other information a
potenti
alinvestormi ghtneedt oevaluatetheopport
uni ty.Thent he
team makes t hems elves availabl
et or ecei
ve any ques ti
ons or
comment sthatthec ommuni t
ymi ghthave.

I
CO Team:TheOffer

Aftert heannounc ement ,adjustmentsbas edont hec ommuni ty’

s
feedbac kar emadet ofinal i
zethebus inessmodelandwhi tepaper
withf urtherdetail
s.Thisisaver yimpor tants t
epasI COshappen
beforeapr oj
ectiscompl eted;makingi tc ruci
althatthet eam is
transpar entandt horoughwi ththeirdoc ument at
ion,soinves t
ors
trustt he ICO.An offerpr oposaliscreat ed and incl
udesal lthe
detail
sandt ermsofapr oj
ec ts
uc hasdes iredinvestmentamount ,
projectdeadl i
nes,etc
.Thefinanc iali
nstrumenti salwaysintheform
oftokens .Att
hispoint,t
hes tar
tdateofI CO s al
eisannounc edand
mar ketingkicksintotargetsmalleri
nves t
or s.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
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Yout
heTr
ader
:Regi
sterwi
thaCr
ypt
ocur
renc
yExc
hange

Yourfir sttasktopar t
ici
pat einanI COistobuyc ryptocurrenciest
hat
youwi l
lus etopur chas etheI CO tokens.Again,thisi
sus uall
yEther
orBitcoin.ICOsdon’ tac ceptfiatc urrency.Ther ecommendedway
to purc hase enough Bi tcoins or Ether ist hrough an onl ine
exchange.Youwi l
lwantt odot hiswellbeforethes tartdateofan
ICO sal
east heregistr
at i
onpr oc
es scantakeaf ew days .Onc et
hat
isdone,s i
mplyt ransfermoneyf rom yourbankac c ountto your
crypt
oc urrencyexc hangeac c
ount .Forthosewhoei t
herdon’ thave
bankac count s
,creditc ardsorwoul drathernotus ethei rI
Di nthi
s
process,youc ans til
lbuyBi t
c oi
n/Etherfrom ac rypt
oATM,oryou
cantryapeer2peerexc hangeandt radelocall
y.

YoutheTr
ader
:Exc
hangeTr
adi
ti
onalMoneyf
orBi
tcoi
nor
Et
her

As s
umi ng you dec i
de t o us e an exc hange and nots ome other
met hod ofobt aini
ngyourc r
ypt ocurrency,thepr ocessiss i
mple.
Us i
ngyourr egister
edac count ,youexc hangeyourfiatc urrencyl
ike
USDorEURf orthecryptoc urrenc yyouwantt obuywhi chtakeafew
seconds .Exchangest ypicall
y pr ovide you with an onl i
ne wall
et
when you r egis
ters ot hati swher eyournew c r
ypt ocurrenc
ywi l
l
show up.However ,don’tkeep al argeamountofmoneyi nthis
walletas onl i
ne exc hanges ar et argetsf orhac kers and these
hac kershave been s uc ces s
fuli nt he past.Inst
ead,you wi l
lbe
transferr
ing yournew c r yptocur r
ency money t o a mor esecure
wallet.

Yout
heTr
ader
:SetUpYourWal
let&Tr
ans
ferYourCoi
ns

Securi
tyisthe mainreason you s
houl
dn’tkeep mos
tofyour
crypt
ocur
renci
esinanexchangewall
etwhenyouarenor
mal
ly

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
trading.Parti
ci
pat
ingi nanI COisanotherone. Unlesstheexchange
youus edc l
earl
ystatedt hatit
swall
etcanpar ti
cipateintheICO,you
willneedtous eanot herwal l
etoryouwon’ tbeabl etoaccessyour
new ICO tokens.Itisver ydi fficul
t,i
fnoti mpos sibl
e,to getyour
tokensfrom anunappr ovedexchangewalletsi
nc emanyexc hanges
areoverloadedwit hr equestsorwon’tall
ow itundert heirgeneral
‘
termsofus e.'

Mos tICOshappenont heEt hereum net wor

k,ands oyouwi lll
ikel
y
need t o ac quire an Et hereum wal let
.Somet imes an I CO wi ll
recommend at ypeofwal l
etbec ausenotever ywal letisagood
choic et ous ewhenpar tici
patinginanI CO.Oneexampl eofanI CO
suitabl ewalletisMyEt herWal l
et.Thisi
sawebs it
et hatall
owsyout o
creat e,s end and r ecei
ve Et herbutyou keep c ont r
oloveryour
privat ekeys. Youc angener ateawal l
etandthenpr otectitwi
thyour
ownpas s words .Yougetadownl oadablefilewithapubl i
c-pri
vate
keypai r.Tos endEt her,allyouneedt odoi suploadt hefil eand
provi det hepas s word.

I
CO Team:TheLaunc
h

The offic ials t

artdate oft he ICO s ale orlaunc h dat eis when
cryptocurr encytokensar emadeavai l
able.Thepr ef
er redcurrency
topur chas eICOtokensisus ual
lyEtherorBi tcoin.TheI COc ompany
willprovideamet hodt obuyt het okensont hel aunc hdatewhi ch
wasout l
inedi ntheoffer .ICOsus uall
ylastatleas taf ew weeksbut
canbeopen- endedwi t
hnoenddat e.Thepr ojectwilltrytorai
s eas
muc hmoneyaspos si
blebutagoodpr actic
et olookf oriswhenan
ICO placesa c ap on the totalamountr aised.Onc et hey have
reachedt hei rt
arget,t
hepr ojectcanc onti
nue.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
I
CO Team:TheCl
ose

An ICO us uall
yc l
osesonc et he i
nvestmentc ap isreached.ICO
tokensc anbel istedonc ryptocurrenc
yexc hangesonc etheICO i
s
compl eteandt hepr oj
ectislaunched.Not e,thattheremaybea
mandat or ycooling off peri
od r i
ghtaftertokensar er el
eased t
o
i
nves tors.Duringt hiscooli
ngoff per iod,you willnotbeabl eto
trade.Onc ethi
sper iodisdone, youarefreetotradethem forot
her
cryptocurrenci
esorbac kintoafiatc ur
rency.

Yout
heTr
ader
:Cas
hOut&Sec
ureYourTokens

Onceyouhaver eceivedyourtokensinthewal
letyous
etupf orthe
I
CO, youwillneedtot ransf
ert
hem toamor esecurewall
et.Youwil
l
needabi tofextraEtherinyourwallett
opayfortheusualwall
etto
wall
ettransact
ionc osts.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
 Chapt
er7:

Anal
ysi
s&I
ndi
cat
ors

Fundament
alAnal
ysi
s

I
nt het raditi
onalinves t
ment sworld,f
undament alanalysisinvolves
evaluatingt hefinanc ialhealthandviabi
li
tyofac ompanyus ingits
financ i
al st
at ementsinor dertofigureoutit
str
ueval ue. Thisdoes n’
t
workf orc ryptocurrenciessincetherearenofinanc ials t
atement s
.
Atitsc ore,itfocusesons ol
vingthequesti
onof“ WHY”t hepr ic
ei s
movi ngi nthemar kett hewayi tisandhelpsusant i
cipatef uture
pri
ces .In or derto do t hatwe look atthe basicdriver sofany
economi csituat
ion–s upplyanddemand.

Demand

Severalfactorsaffec tthedemandofac r
yptocurr
enc ysuc hasus er
adoption,t r
ading,andt r
ansacti
onac t
ivi
tylevel
s.Us eradopt i
oni s
perhaps t he strongestf act
or in determini
ng a c ryptocurrency
fut
ure.Bi t
coin,theor i
ginalc
ryptocurr
enc y,
isthehighestus edofall
coi
ns.Itisbec omi ngmor emai nst
ream everyday.Otherr ival
ss uch
asEtherf r
om Et hereum alsohaveas trongadoptionr ate.

Trustisanotherdemanddr i
ver.Thismightbethet r
ustinthec oin’
s
securi
ty,thestrengthofi tsblockchai
n,abil
it
ytohol ditsvalue,the
commi tmentoft hedevel opmentt eam,etc.Ift
hemar ketfeel
sany
oft hese aret hreatened in any way,t he value willgo down.
Governmenti nvolvementhasal sogoneal ongwayt oi ncr
easet he
trustleveloft hes e digi
talc oins.There hasn’tbeen as muc h
resi
stanceass peculatorsorigi
nalthoughttherewoul dbe,par t
iall
y

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
s
inc
ethes
elar
gei
nst
it
uti
onss
eeval
uei
nbl
ockc
hai
ntec
hnol
ogy.

Speculatorsmakeupas t
rongdrivi
ngforcei
ndet er
mi ni
ngvalueon
anas set.Sincetherearealwaysnew updates,devel
opment s,I
COs
and regulation c
hanges,s pecul
ati
on i
sconstantl
yhappeni ngand
shif
ti
ng. Thi si s one r eason for the hi
gh vol ati
li
ty of t
he
cryptocurrencymar ket
s,oftensoari
ngonedayands wingingdown
tocrashi naf ew s
hortdays .

Suppl
y

Determi ningdemandf oracr yptocurrencyiscompl icatedbyi t

svery
nature.However ,it
’sthatnat uret hatmakest hes tudyofs upply
si
mpl er.Ac r
yptoc urrencyus uall
yhasl imitsoni t
st otals uppl
yand
evenont her ateofwhennew c oinsar ereleased.Thes elimi
tsare
buil
tintot hec odei tselfand c an’tbec hanged.Thet ot als
upply
amountc an bef ound t hr
ough r es earc
h onlineeas il
y,aswel las
i
nformat iononwhens upplieswi l
lr unout.However ,ther earethe
casesof‘ dead’c oins.Thesear ec oinsthathaven’ tmovedi nalong
ti
mef orwhat everr eas onper hapsbec auseawal letwasdamaged
orkeyswer elost.

OtherI
ndi
cat
orst
hatDet
ermi
net
heOpt
imalPr
iceofa
Coin

The optimalpr i
ce ofa coini sdeter
mined bys everali
mpor t
ant
fact
or sotherthan s upply and demand suc
h ast he blockc
hain
diffic ul
tylevel
,medi ainfluence,i
nnovati
on,etc.Let’
sgointodetai
l
ons omeoft hesekeyf act
ors.

Ener
gyUs
age

Youmi
ghtbes
urpr
isedt
olear
nthatt
her
equi
redel
ect
ric
ityneeded

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
playsal arger ol
ei nmi ni
ng.Thisi sbec auset heenergyr equi
redt o
sec ure blockchains can be ver y hi gh.Pr oof of Wor k( POW)
bloc kchai
nswhi char ethemos tc ommonandal sorequirethemos t
ener gy.Toputt hi
si ntoperspective,theamountofener gyrequired
tomanaget heBi tcoi
nbl oc
kc haini sequalt ot heamountas mal
l
count rywoul dusei nayear .Thisput sas tr
ainont her esourcesof
mi ners,anintegralpartofthec ryptoc urrencymar ket.

Di
fficul
tyLevel

Mi ni
ngdi ffic ul
tyreferst othemeas ureofhow diffic ul
titistofinda
has hbelow agivent arget.Blocksmus thaveahas hbel ow apre-s
et
target to be c ons i
der ed valid. The per c
eived val ue of a
cryptocurrencywill
incr easethemor esec
ureabloc kchainisandthe
highert he mining diffic ul
ty.Italsoi ncr
easest he energy usage
neededandmakesi tmor edi fficulttogetcoi
nsthr oughmi ning.

Ut
ili
ty

Theuseofacryptoc
urrenc
yalsopl
aysarolei
nitsvalue.Ifitdoesn’
t
haveastr
ongus e,li
keacti
ngasaform ofcurrency(Bit
c oin)orto
exec
utesmartc ontr
acts(
Etheron Et
hereum),then therewi llbe
l
owerpercei
vedvalue.

Publ
icandMedi
aPer
cept
ion

Cryptocurrencyhashad i t
ss hare ofboth posi
tive and negati
ve
publicperceptions.Themedi ahaspl ayeditsrol
einr eporti
ngthese
positi
ve and negat i
ve development swhich aret o be expect
ed.
Peoplec anr eactposit
ivel
yt ot heinnovat
ionsthatc omef rom t
his
new technology.Theyc anreac tstr
onglytotheoftenvol at
il
enature
oft he cryptocurrency mar ket.Ital s
o has had s ome negat i
ve
associat
ionswi thil
legalact
iviti
es.Therehavebeenhac kst omajor

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
exchangest hathave affec
ted t
he c
oinsaswell.Thes
et ypesof
si
tuationsc
anhaveahugei mpactonthepr
iceofacoi
northeenti
re
mar ket.

Bi
tcoi
n’sHeal
th

Bit
coini sthe oldes
tand s t
rongestofal
lc r
yptocur
renci
es.I
tis
perceivedtobeal mostli
kea‘reser
vecur
rency.'Whenthepri
ceof
Bit
coin fluc t
uates,it oft
en influenc
es the pric
e of al
l ot
her
currencies
.

I
nves
tor
s

I
nvestorshavemor eofan effec ton c oi
n pricesthan you mi ght
thi
nk.Forexampl e,whenani nves torors mallgroupofi nvestors
buyalargeper centageofac oin’ssuppl y,t
heyc ans parkanupwar d
movementoft hec oinsmar ketpr ice.Theabi li
tytoaffec tac oin’
s
pri
cethi
swayi ses pec ial
lytruewheni nvestorsbuylargeamount sof
small
er,less
er-known c ryptocur renc i
es .I
ti st
rue;s omei nvestors
mightdot hi
st otryt hent o‘ pump’ thepr iceandt hen‘ dump’ their
coi
nsforagr eaterr eturn–anac tthatisill
egal.However ,changes
i
npr i
cesbecaus eoft heirlargei nvestmentc anbeac cidentalaswel l
.
When i nvest
ors , par ti
cularl
y wel l
-known ones , make a l arge
i
nvestmenti nas mal lcoin,t hisc an pr ovi
de ot hers wi t
ht he
confidenc et
oal sobuy.Thi sinc reasesdemandandt hereforet he
pri
ceoft hecoi
n.

Sc
ams

Unfor
tunatel
y,therehavebeenc as
eswher ec r
yptocurrenci
eshave
been devel
oped asas cam.Thisus ual
lytakesthef orm ofheavy
marketi
ng efforts promis
ing t
he nextbi gt echnology butli
tt
le
devel
opmentf actstosupportthec l
aims.Intheses it
uati
ons,i
tis

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
typicalthatthedevel oper s‘premine’thec oinsupplybeforebei ng
released.Theyhol dal argeamountofi tssuppl
y,andaf t
erthec oin
i
sval ued,theys ellt
heirc oins.Thedumpi ntothemar ketwillcrash
theval ueforanyot herinves tors.Theses c
ammer swi l
lhaveal arge
sum ofmoneyf ort heireffor t
s.Asment i
onedbef ore,thi
s‘ pump
and dump’s t
rategy isc ons i
dered ill
egal.Sadl
y,itisdi ffic ultto
pros ecutethem ast helaw hasnotc aughtupwi thcryptocurrency
mar ketsfull
ythroughoutt hewor l
d.

Mar
ketDi
lut
ion

Moreandmor enew cryptocurrenci

esareenter
ingthemar ketata
rapi
dpac e.Manyofthes ear eheavil
ybasedont heBit
coins ource
code,don’tofferanynew i nnovati
onsorhavelitt
letonopr acti
cal
uti
li
ty.This market dil
uti
on makes i tincr
easingl
y difficultf or
promisi
ngaltcoi
nstoc ompete.

I
nnovat
ion

Bit
c oi
n gave usbl ockchains,Etherisus ed wi
ths martc ontr
act
s,
Peer c
oin us es a combinat i
on ofboth POS and POW s yst
ems.
Des pit
emar ketdiluti
on,coinsdoc omeoutwi thnew innovati
onsi
n
technology.Itdoes n’
tguar anteeac ur
rencywillbecomes t
rongi
n
themar ket
,butitdoesaffec tthepri
ce.

TheLaw andGover
nment

Insomec ountri
es,cr
yptoc urrenci
esarebannedwhi l
einothersthey
arebeingintegrat
edi ntos ociet
y.Forexample,inthefallof2017,
bothSout hKoreaandChi nabannedI COsbecaus eofinvest
ment
pract
ice c onc
erns. The l aws and t ax poli
c i
es surrounding
crypt
ocurrenci
esar e being formed ata rapid pacein hopesof
keepingupwi ththegr owi ngmar ket
.However,duet othelimited

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
abi
li
tytocont
rolc
rypt
ocur
renc
ybyt hever
ynat
ureofi
tsnet
wor
k,
l
aw andrul
escan’
tal
waysbeenfor
ced.

I
nst
abi
li
ty

Thisisanewt ypeoffinancialmarketwhi chmeanst hatt herewillbe

andisi nst
abilit
y.Thepriceofac oinc anc hangerapidly,especiall
y
whenyouc ons i
derallt
hef act
orst hathavebeenc over edi nthis
secti
on. This does make i nvesti
ng i n c r
yptocur
r encyr i
skier
.
However ,volatil
it
yisdecreasi
ngovert i
me.Al waysmakes ureyou
properlyr esearch your opti
ons and know your l imits before
i
nves ti
ng.

Bear&Bul
lMar
ket
s

Thet er m bearandbul lmar ket

sor i
ginallywer eus edinrelati
ont o
thes toc kmar ket,butthes amepr incipalsofthes etrendsc anbe
appliedt othec r
yptocurrenc ymar ket.Aneas ywayt oremember
thedi ffer encebetweenthet woisbyt heani malstheyreferto.Abull
wil
lmovei ts
’hornsupwar dstoattac kwhi l
eabearwi l
lswipedown
withits ’paws.Ifthemar kets howsnei therpat t
ern,itisas i
deways
mar ket ,and itisbestto del ayanyt ransacti
onsunt iladi r
ec t
ion
beginst oshow.However ,itcanbedi ffic ultt
opr edic
twhent rends
wil
ls hi ftbecause botht rendsare bas ed on the emot i
onsand
specul ati
veopi ni
onsoft r
ader sandexper t
s.

BearMar
ket
s

A bearorbear i
shmar ketisonet hatisshowingl owerhighsand
l
owerl ows.Forexample,let
’ssaythepr i
ceofc r
yptocurr
enciesfall
becauseofs tr
ictregul
ati
onsf r
om al argegovernmentbody.The
marketseesthis,t
heirt
rustbeginst
owaver ,andsomebegi ntos el
l.
Thisconti
nuesast he marketsdip mor e and t
radersantici
pate

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
c
ont
inuedl
oss
es.

Thereisadi fferencebet weenabearmar ketandjustacor

recti
on. A
corr
ec t
ion is oft
en s hort-
li
ved,lasti
ng fewert han t
wo mont hs.
Correcti
onsar eapos it
ivesit
uati
on,allowinginvest
orstobuyi nto
the mar ketata di s
countpr i
ce.However ,bearmar ket
sar et he
oppos i
te.Therec anbenoguar anteewhent helosseswil
lst
opand
wher ethebot t
om mi ghtendup.

Bul
lMar
ket
s

Abul lorbulli
shmar ketiswhent hemar ketiss
howinghigherhighs
and hi gher l
ows .Bullmar kets arec reat
ed by hi
gh opt i
mism,
confidenc eandincreasedtrus tthatvalueswil
lholdorincrease.A
bullmar ketisagoodi ndic
at ionofas trongandgrowingec onomy.
Int he c ase ofc r
yptocurrenc i
es,impr ovement
si nt echnology,
i
nc r
eas edadoptionratesandpos it
ivechangesinr
egulat
ionsc anbe
tr
iggers .

Techni
calAnal
ysi
s

Technic
al analysi
sisthestudyofhi
storicalpri
cemovementbyus i
ng
chart
sandgr aphs .Thegoalistobeabl etoidenti
fypatter
ns,and
pri
cepat ternstendt orepeatt
hems elvesinthemar ket
s.Thisfor
m
ofanalysisalong wi thfundamentalanal ysi
swi l
lhelp you make
bett
erpr edict
ionsandbec omeas trongert r
ader.

Wheneverwear eus ingt echni

calanal ys
is,weareusingavari
etyof
chart
st hatmeas uredi fferentas pec t
soft hepri
cemovement .We
ref
ertot hesechar t
sast echnicalindicat
orsorindi
cators
.Thereare
dozensofindicatorsthatyouc anus ewheneveryou’r
etradi
ng.Each
oftheseindicat
orswi llhaveatleas tones t
rat
egythatyoucanapply
toanti
cipatethef ut
ur epr i
ceacti
on.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
Thechar titselfwor ksonanX( hor izont al
)andY( vertical)axis.The
X-axiss howsust het i
met hathaspas sedupunt i
lthepr esentt i
me,
and t heYs howsust hepr i
ceoft hec oi
n.Thec andles ti
cksexi st
between t he t wo asc ol
or ed bloc ks .Dependi ng on the c harti
ng
system youus e,t hebl ocksc ouldber edandgr een,orot herc hart
s
user edandbl ue. Someoft heblockswi llbelong,somewi l
lbes hort,
somewi l
lhavel inesc omi ngoutoft het opandbot tom oft hem and
otherswi llhavenol i
nesatal l
.Al one,ac andlestickdoes n’toffer
muc hi nf ormat ion.Themor ecandl es tic
ksyouhave,t hemor eyou
cananal yzehow t hec andlesti
cksi nt eractwitheac hother ,andt hat
willallow yout ounder st
andbet terhow t hepr icewi l
lmovei nthe
future.

Thebodyoft hec andlesti

ckrepr esent
saper iodoftimeandare
col
oredtoshow uswhic hdirec
tiont hepri
cemoved.Dependingon
theti
mef ramet hatyou haves etyourc har
tingsyst
em t
o,each
candl
est
ickcoul
dr epr
es entavarietyofti
meper i
ods
.

Thecoloroft hec andlesti

ckwil
l l
etusknowwhet herthepr i
cewent
UP orDOWN dur i
ng the peri
od.Di fferentchar
ting syst
emsc an
show differ
entc andles t
ickcol
ors.Ifi
t’
sabl ueorgreenc andl
esti
ck,
thi
smeanst hatthepr i
cemovedupf orthatper
iodoft ime.Ifwe
havear edcandles t
ick,i
t’
sjusttheoppos i
te.I
tmeanst hatthepri
ce
i
smovi ngdownf orthatt i
meper iod.

Thetopandbot tom ofacandlest

ickhavethei
rmeani ngstoo.The
topofaredcandles
tic
kshowsuswhatt hepric
ewaswhenevert he
candl
esti
cks
tart
ed.Thebottom ofaredcandlest
ickshowsuswher e
thepri
cedst
opped.Forablueorgr eencandlest
ick,i
t’
stheopposit
e.

Shadowsorwi cksofcandles
ticksarethelinesthatc
omeoutof
thetopandbottom.Theyshow usthefullpr
icemovementduri
ng
thecandl
est
ick’
sti
meper i
odast hepri
cec onstant
lymovesi
nthe

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
ster
.i
o//ByAedanKel
ly
mar ket.Forexample,ifyouseearedcandles t
ickwit
halinec oming
outoft hetopofit,
itmeansthatthepric
emovedhi gherthanwher e
thatc andlest
ickst
arted dur
ingitsti
meper iod.Ifyou seeawi ck
comi ngoutoft hebottom ofthecandl
estick,itj
ustmeanst hatthe
pric
ewentl owerthanwher eitcl
oseddur i
ngt hatti
meper iod.The
samehol dstruef
orblueandgr eencandles.

Us
ingCandl
est
ickst
oAnal
yzeTr
ends

Whenl ookingatac andlesti

c kchart,youar etryingt oseeapat tern
wher et hepr i
c eisc l
earlymovi nginonedi r
ec ti
onf oraper i
odof
ti
me.You c an s pota t rend when a s eri
es ofc andles
ticks are
traveli
ng i n a direct
ion.Ther efore analyzi
ng j usta handf ulof
candlesticksisn’tver
yhel pful.Trendsc anbedonei nanhourorl ast
mont hs .Therear eupwar dtr endswher ebuyer sar eincontrolofthe
mar kets,andt hepr i
cei smovi ngi nagener alupwar dsdirecti
on.
Ther eareal sodownwar dt rendswher et hesellersar eincontrolof
the mar ket,and t he pr i
cei s moving in a gener aldownwar d
directi
on.

Fi
bonacciRet
racement
s

A Fibonacciretrac ementi s
at ool us ed i n t echnical
analysis
.Thist oolr efersto
areason c hartst hats how
expected areasofs uppor t
and r esi
stance;when t he
pric
eofac oins topsgoi ng
l
owert hati st he s uppor t
l
evelandwhent hepr i
ces topsgoinghighert
hati
st heresis
tanc
e
l
evel.Thi sisus efuli nformation becaus
ei tc
an i
dentif
ythe best
placesforpr i
cet argets,st
opl ossesandothertr
ansac
tions.

Cr
ypt
ocur
renc
yTr
adi
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ypt
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.i
o//ByAedanKel
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Areas of suppor t and r esis
tanc e ar e visuall
yr epresent ed by
hori
zontalli
nesatkeyFi bonac cilevels.Thes elevelsar ec r
eat edby
drawing a tr
endl i
ne bet ween t he highes tand lowes tpr i
ce ofa
peri
od.The t oolwi l
lt hen di vide the ver ti
caldi s
tance by key
Fi
bonac ci
rati
osof23. 6%, 38.2%, 50%, 61.8% and100%. Thes er at
ios
aremat hemat ic
all
ys ignificantnumber st hatoc curi n natureand
oft
en fors ome r eason in financ i
almar kets.His tori
call
y,af tera
si
gnificantpr i
ce movementup ordown i nthe mar ket,the new
supportandr esist
ancel evelsareof tenatorneart hesel i
nes.

Theselevel
sdon’tmovewi t
hthec hartasmovingaverageswoul d.
Thisall
owstraderstobetterpredi
ctandr eacttothemar ketwhen
pri
celevelsaretested.Theserati
ol evel
ss how pl
aceswher ei
ti s
usuall
yexpected thatthemar ketwi l
lstr
ugglethen f
allloweror
breaktoanew height.

Themos tsi
gni ficantFi bonacciretr
acementlevelt owat chforist he
0.618.Thi sisthei nvers eofthegoldenr at
io,
1.618orphi .The0. 618
retracementl evelt endst obet hemaxi mum pul lbackz onewher e
fearc li
maxesast hefinals el
lersthrow inthet oweland bar gain
hunt ersrushi ntot hes tocktoresumet heuptrend.Ondownt rends,
the0. 618pr i
cel evel s
houl dbewher ethefinal buyersar eexhaus ted
as s ell
erst ake t he oppor tunityto unload t heir posit
ions and
shor t-
sell
ersjumpofft hefencet opushdownt hepr i
ceandr esume
thedownt rend.

Fibonac ciret
r acementlevelsc anbeus edast ri
gger
sf orbuyorder
ordr awbac ksi nanuptrend. I
nadownt rendingmar ket,youcanuse
thesel evel
st os hortsel
l.Asment ionedbef ore,usemor ethan2to
3i ndic
at or
stos tr
engthenyourpr edict
ions.Forexampl e,a200-
day
movi ng average t hatover laps wit
h ar etracementl evelwould
i
ndi cateanevens tr
ongers upportorr esi
stanc epoint.Tip:Al
ways
l
ookatt he0. 618/61.85levelasitisthemos ti mportantone.Thisi
s

Cr
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ocur
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ypt
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wher
ethemar
kett
endst
obounc
ebac
koutoff
ear
.

MACDI
ndi
cat
ors

MACD s tands f or ‘ moving

aver age c onvergence
diver gence.' It s hows t he
shows t
he relati
onship
bet weent womovi ngaver ages
ofpr ices.Whi l
ethenamemay
soundc ompl ic
ated,itissimple
to us e. MACD i s popul ar
bec aus e ofitsabili
tyt o hel
p quickl
yspoti
ncreasi
ng s
hor
t-t
erm
moment um whi ch i s helpful when cr
eat
ing your s
hor
t-t
erm
strategies.

TheMACD i sc alc
ulatedbys ubtrac t
ingtheval ueforthel ong-term
movingaver agefrom theshort-
ter m average.InMACDc alculat
ions,
12and26- dayexponent i
almovi ngaver agesareus ed.TheMACD
canbec ust
omi zedt ofitanys tr
at egy,butt hedefaul
tsar et hese26
and12-dayper i
ods.Ther esul
toft hiscalcul
ati
onispl ottedont he
graph.Asignallineisplottedont heMACD c hartbyus inga9- day
exponenti
almovi ngaver agecalculationandwor ksasat ri
ggerf or
buyands ellpoints.

Readi
ngt
heSi
gns

Cr
oss
over
s

WhentheMACDf al
lsbel
owt hes i
gnal l
ine,i
tisabear is
hsignal
.Thi
s
t
ypi
cal
lymeansitmaybet imet osell.Whent heMACDr i
sesabove
t
hatsi
gnal
li
ne,i
tisabull
ishsignal,andt hepri
c eisl
ikel
ytoconti
nue
movi
ngupward.Iti
sasafestrategytowai tuntilt
heMACDhasr i
sen

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
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.i
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above the s
ignalline f
ora s
hor tperi
od to avoi
djumping i
nto
posi
tiontooearly.Other
wis
e,i
tcoulddipbackbelow t
hes
ignall
ine
quic
klywhichisac ommonmar ketcor
recti
on.

Di
ver
genc
e

Di
vergencer ef
ersto when t
he t
wo 12 and 26 daysexponent
ial
movingaveragesbegintomoveapart.Whatthi
sr eal
lymeansisa
pr
icelow i
snotac compani
edbyal ow oft
heMACD.Thi ssit
uati
on
us
uallysi
gnalstheendofatrend.

Ri
singDr
amat
ical
ly

Whent heshortexponentialmovingaveragepul
lsawayfrom the
l
ong-term vers
ion,itwil
lshow ast heMACD ri
si
ngdrasti
cal
ly.Thi
s
t
endst obeas ignthatt
hec rypt
ocur r
enc
yhasbeenoverboughtbut
wil
lreturntonormallevelssoon.

Pos
iti
ont
otheZer
oLi
ne

Anothersi
gnal t
owat c
hforist
hepos it
ionoftheMACDi nrelati
ont o
thezeroli
ne.Thez eroli
neisoft
ens hownbyas olidhoriz
ontalline
on t
hec harts.Itrepresent
st helong-ter
m averageand ac t
sasa
supportorresistancelevel
.Upwar dmoment um isrepresentedby
the MACD movi ng above the zeroline meani
ng the short-t
erm
average i
s above t he l
ong ter
m.Rever sethi
ss it
uat
ion,and a
downwar dtrendc ouldbeforming.

Cr
ypt
ocur
renc
yTr
adi
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ypt
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Rel
ati
veSt
rengt
hIndex(
RSI
)
Ther elati
ves t
rengthi ndex( RSI)shoul dn’t
bec onf usedwi t
hr elati
ves trengthwhi ch
compar e’
st he perfor manc e ofa c oin’
s
pr i
cetot heover allmar ketaverage.RSIi s
at oolyouc anus etofigur eouti fac oin
hasbeenover boughtorover soldwhi ch
can pr ovide you wi th ent ry and exi t
signals.Itc anal sohel ps potorc onfir m
reversalst hrough moni t
oringf ordi vergences
.Iti
samoment um
i
ndi cat
ort hatmeas ur esthes peedandc hangeofpr
icemovement
s.
Valuesmovebac kandf orthbet ween0and100.

When the RSIgoes70 orabove,i tindic

atesthe coin hasbeen
over
boughtorover valued.I
fitgoes30orbel ow,theni thasbeen
over
sol
d orunder valued.In bothsi
tuati
ons,itisvulnerabl
etoa
tr
endreversal
.Thedef aultt
imef r
amef orcomparingupper i
odsto
downperiodsis14tradingdays .

TheRSIi sal
sous edt ospotdivergence.Whent hepr ic
eisri
sing,but
theRSI i
sfall
ing,thi
sisknownasabear i
shdivergence.Whenbuyi ng
moment um isslowingli
ket hi
sthent hi
sisawar ningthattheprice
coulds oon correctlower.Bulli
sh divergenceiswhen t hepric
ei s
fall
ing,buttheRSIi sri
sing.Itwar nst hepric
ec oul
ds oon move
highersinces el
li
ngmoment um isslowing.

Eachc oi
n wi l
lmovedi ffer
entl
yand c ould havedi fferentranges.
When you not icet he patt
ern, adjustthe l evel to suitt he
movement s .Thi
sc ouldmean40maybeabet terentrypointt han
30.False buyors ellsi
gnal
sc an happen int he RSIifthere are
suddenlar gepric
emovement s.Tooffs etthisissue,somet raders
usehigherandl owervaluessuchas80and20asbuyors el
lsignals
.

Cr
ypt
ocur
renc
yTr
adi
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ypt
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.i
o//ByAedanKel
ly
However,i
tisveryimpor
tantt
ous eothert
echnic
alindi
cat
orst
o
confir
m yourpredi
cti
onswhenusi
ngtheRSIi
ndic
ator.

Movi
ngAver
ages

Ther ear es everalt ypesof

movi ng aver ages ,
regar dl
es soft hetype,t hey
are al lc ons i
dered t o be
lagging indicators.Laggi ng
indicatorsar eallbas edon
whathasal r
eadyhappened
whi l
e pr edicti
ve indi cator s
help us figur e out what
mi ghthappeni nthef utur e. Si
mpl
eMovi
ngAver
ageandWei
ghtedMov
ingAv
erage
Bas ed on t hisinfor mat i
on
youmayt hi
nkt heyar en’tver yus ef
ul.Thi si sn’ttrue;t heyc anbe
usedt odet erminet hes trengt hofamar kett rendaswel lashel p
dec i
debet ween ac tualmar ketrever s
alpoi ntsand c ommon r at e
fluc tuati
ons .Only3ar ec ommonl yus edbyt rader s.Thes ear et he
simpl e movi ng aver age,t he weighted movi ng aver age,and t he
exponent i
almovi ngaver age.I twillt
akes omet es t
ingt odet ermi ne
whi ch of t he movi ng aver ages fit s your t r
adi ng s t
yle. We
recommendyous tar twitht hesimplemovi ngaver agebas edont he
last20pr ices.

Si
mpl
eMovi
ngAver
age

Thes i
mpl emovingaver ageiscalculatedbyt aki
ngas etofpr i
ces,
adding the pr
ices t
oget herand t hen di vi
ding the tot
alby t he
numberofdat apoints.Itisthesimpl estform ofmovi ngaverages.
Thi
si scalc
ulat
edinawayt omovei nres ponsetot hemos tr
ec ent
datathatwasus ed.Ifyouc hoosetoi nclude20oft hemos tr
ec ent

Cr
ypt
ocur
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yTr
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ypt
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exchanger at
es,t
hent heoldestwillbetheratetodropoutoft he
cal
culati
on when anew pr ic
et akeseffec t
.Aseac h new pr
iceis
i
ncluded,theoldestonedrops ,t
hiscal
culat
iontypeensurest
hatit
i
sonl ybasedont hemostrecent20pr i
ces.

Wei
ght
edMovi
ngAver
age

A weight edmovi ngaver agei scalcul

atedi nt hes amewayast he
simplever sion.Theonl ydi fferenceist hiscalculationus esvalues
thatar el inearlywei ghted.So,t he oldestratei nt he calcul
ation
woul drec eivear atingof1; thenextol destwoul drec eivea2, ands o
on unt i
lt hemos tr ecentr ate.Thisens urest hatt hemos trecent
rateshaveagr eat erimpac tont heaver aget hant heol dest.Some
tradersfind t hismet hod mor er el
evantf ort rend det ermi nati
on,
espec i
all
yi naf ast-movingmar ket.However ,therei sadowns i
de.
Theaver agel inet hati screated coul d bemor er agged t han the
simplemovi ngaver agever sion.Thismeansi tc ouldmakei tmor e
compl i
cat edf oryout ofigur eoutifat rendi shappeni ngorj usta
fluc t
uation.Sol ution:youc anus ebot hver s
ionsont hes amepr i
ce
charttos eehow t heyl i
neup.

Exponent
ialMovi
ngAver
age

J
us tlike the weighted movi ng average,t he exponent ialmoving
average iss imil
artot he simpl e movingaver age.The di fference
between t he two isthe simpl e moving aver age wi llr emove the
oldestpr i
cewhent henew onei sineffec t.Anexponent i
almoving
averagec alculat
esfrom thes t
arti
ngpoi ntyouc hoos et heaverage
ofallt hehistori
calranges.Let’sgobac ktoouri nit
ialr angeoft he
l
as t20pr ices.Thefirstcalculati
onyour eceivewi llbei dent i
calt
oa
si
mpl emovi ngaveragebec auset hereare20pr ices( orr eporti
ng
periods )
.Thi sis where an exponent i
almovi ng aver age differs.
Whenanew pr ic
ebec omesavai l
able,insteadoft akingt hemos t

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
oMei
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.i
o//ByAedanKel
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rec
ent20aswi t
hthesimpleaver
age,youwillnowhavetheaver
age
on21reporti
ngperi
ods.Asnewpr i
cestakeeffect,t
heyarei
ncl
uded
i
nt het
otalpi
ecesofdatausedtofindt heaverage.

Cr
ypt
ocur
renc
yTr
adi
ngeBook Cr
ypt
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.i
o//ByAedanKel
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 Chapt
er8:

Ri
sk&MoneyManagement

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ypt
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renc
yTr
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ypt
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Eas eintoTrading:Ifyouar enew t ot rading,st
artsmallands t
art
slowly.Thereisalott olearnandexper i
enc ewithcryptocur
rency
whi c
hc anoverwhelm event raderswi thexper i
ence.Testoutafew
coinsand af ew exchangeswi t
hs mal ltransacti
ons.Wat c
hs ome
videosofmi nersbef orepotent i
all
ys pendi ngthousandson your
ownmi ningmachine.Wantt os t
artwithanI CO?Onlyinvestasmall
financ i
alamounts o you can getthehangoft hepr ocessbefore
commi t
ti
ngmor ef undsand i ncreasingyourr is
k.When you ar e
ready,youwi l
lhaveabet t
erunder standingofwhatt ypeoftrader
youar e,whatyours t r
engthsar e,whatyourweaknes sesareand
how bes ttoexecut
es uccessf
ult r
ades .

CheckYourSour ces:Whendoingres
earchorjusti
nter
acti
ngwith
ot
herc r
yptotr
aders,makesuretobewar yofs
c ammers.Don’
tfall
vi
cti
mt oa‘pumpindump’ orf
akeICOs c
heme.Doyourhomewor k,
usetrus
tedsourc
esandmakes ur
eyouar emonitor
ingt
hemarket .

Don’tTradewi t
hMor eThanYouCanLos e:Thecryptocur
rency
marketisavolat
il
eone.Therearetimeswhenitseemswhati shot
onedayi stanki
ngthenext .Toprotec
tyours
elf
,don’ttradewith
moret hanyoucanreal
ist
icall
ypartwit
h.Youcanstartwithavery
smallamountandbuil
dovert imeasyoubecomeas tr
ongertrader.

Youwi llLos
eatSomePoi nt:I
twill
happen, t
her ewil
lbeanoffday,
andyouwi l
lmakeabadt rade.Maybeevenhaveas er
iesofbad
trades.Youarenodifferentfrom anyoneel seandi mmunef r
om
thishappeningt
oyou.So,don’tputallyourcoinsinonet r
adeand
whenyoudomakeami s
take,l
earnfrom itandmoveon.

Res earch,Plan,Chart,Moni tor:Don’tr el

y on gues
swork,gut
feeli
ngsort he advi
ce ofotherstot rade.No mat t
erhow muc h
tradingexper
ienceyouhave,don’ttr
ytopr edi
ctthemarketonyour
own.Fol l
owlong-t
erm markettr
ends ,l
earntoreadandunderstand

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ypt
ocur
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yTr
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ypt
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thecharti
ngtool
swehavec over
edinthi
seBook,foll
ow t
henews,
watch vi
deos,and l
earn new ti
ps.Use bot
hf undamentaland
tec
hnicalanal
ysi
stogetagoodsensewhenitisagoodtimetosel
l
orbuy.

It’
sAboutt heBi gandSmal l:Speakingofc hart
s,itmaybever y
temptingtomonitoryourcoinsinshor tti
meframesonyourgr aphs
.
Asabegi nnerorintermediatetrader,it’
sbettert
hatyouf ocuson
researchandmoni tor
inglongt ermst rendsthangetc aughtupin
short-
term movements.Thes efluctuater api
dlyandc ancauseyou
tomakeemot ionaldecis
ionsthatgoagai nstyourplan.

YouAr etheBos s:Ther

ear epl
atformsoutt herethatallow youto
copytheexac ttr
adesofsucces
s fult
rader
s.Whi letempt i
ng,doing
thisteaches you nothing and put st he c ontrol (
and your
crypt
ocurrency)i
ns omeoneelse’shands.Ifthingsgowr ong,you
won’thavedevelopedtheexperienceoremot ionalc ont
roltodeal
withthemes sandpotenti
all
yfixt hesi
tuat
ion.

Don’t Br ag: This may s ound l ike an odd r is

k management
sugges t
ion,butt hereistrut hinit.Braggingaboutyours ucc essin
the cryptocurrencyc ommuni ty willal
ienate you.Ifthatdoes n’
t
botheryout henkeepi nmi nd,italsomakesyouapot entialt ar
get
forscammer sandhac kers.Bylear ni
ngever yt
hingthatyoudoand
howyourt r
adi ngsetupi s
,t heymaybeabl etofindweaknes sesand
exploi
tt hem.Bec ar
efulwhatyous hareandt owhom.

DiveDeeperint otheCode:Thebes tpartofcryptoc ur

rencyisthe
i
nnovati
onbehi ndthetechnology.Yous houldtryt odigdeeperand
underst
and everythi
ng thatc ryptocurrenci
es c an offer bes i
des
beingaform ofcurrency.Someoft hemos trecentc oi
nsuc ces
ses
havebeenbec auseofthei nnovati
onst hesecryptoc urr
encieshave
broughttothe mar ket
.Lookf orc oi
nst hatpr ovide sol
utionsto

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ypt
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ypt
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needsnotal
readymetint
hemar
ketandavoi
dcl
onesofBi
tcoi
nthat
haveminimalchanges
.

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ypt
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We’vecomet otheendofours tep-
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urr
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oc ur
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ypt
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