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Cryptocurrency for Beginners
Guide to the Most Common
Cryptocurrencies and Altcoins
Table of Contents
Introduction
Chapter 1: Brief History of Cryptocurrency
Chapter 2: Investment in Cryptocurrency
Chapter 3: Different Forms of Cryptocurrency
Chapter 4: What Should You Know About Investing in Cryptocurrency?
Chapter 5: Risks & Rewards in Cryptocurrency Investment
Chapter 6: How to Safeguard your Cryptocurrency?
Chapter 7: Popular Crypto Coins and Exchanges
Conclusion
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5. Firstly, stay positive and don’t just lose all your hopes. Encash
your currency into fiat currency as soon as possible.
6. You can also convert your currency to some other well-known
currency and mitigate your loss.
7. Person-to-person transactions can also be an option, but this can
be very risky, and you need to make sure you have done some
due diligence over here.
Chapter 7: Popular Crypto Coins and Exchanges
While there are thousands of options in the market, and you might get lured
by a fake website, it is important to be mindful of choosing your coins and
exchanges. These decisions can have an impact on your finances; careful
measures must be taken. It is very important not to get sidelined by the
noise created in the cryptocurrency world and avoid the hype as much as
possible.
Popular crypto coins to look out for in 2019
Bitcoin
Bitcoins are still the most popular form of currency in the market. Don’t
ignore it. It is considered to be one of the best forms of long-term
investment in the cryptocurrency markets. The pricing is quite steady, so
one can invest in a few Bitcoins. Very few Bitcoins are left in the market;
make sure you make your investments quickly. You can buy Bitcoins from
any popular exchange platform like CoinBase and store your BTC in a BTC
hardware wallet as well, which is easily available on the Internet. Bitcoins
also have the highest liquidity at the moment and is the best form of
investment for beginners; you will not face a lot of problem in selling your
Bitcoin, as there will always be someone willing to buy your Bitcoin. Since
the price is so volatile, it would require a lot of capital for someone to
manipulate its price; therefore, it is also a safe form of investment.
Litecoin (LTC)
Litecoin was launched to complement Bitcoin. It is a fork of Bitcoin with
very few changes and has been a successful currency for a decade. It has
made a huge success, and investors are always investing in Litecoin,
making it highly liquid. Litecoin also has a great market share in the overall
cryptocurrency economy. It is one of the most trusted cryptocurrencies in
the market as of now.
Binance (BNB)
Binance is a currency of Binance exchange and was launched in 2018 to
enable waivers on the trading fee for Binance exchange users. Binance has
been growing rapidly now and is about to launch a Binance chain as well.
Plus, Binance uses around 20% of its overall profit to buy back BNB and
create scarcity, thus increasing the value of BNB and rewarding its early
users. The plan is to continue doing so until they buy back 50% of BNBs
Ethereum
Ethereum has always been bullish and is gaining wide popularity these
days. They are very ambitious and are going to make it big in the coming
few years.
One more thing to consider about Ethereum is that it is still being developed
and has some prominent developer’s around the world working on it.
NEXO
Nexo is the world’s first instant crypto-backed loans and is powered by
Credissimo - a leading Fintech firm in Europe. If you are an investor who
can’t part away with crypto and still wants equity, you can use NEXO.
Nexo loans are issues instantly when you collateralize your
cryptocurrencies. Nexo supports 40 plus currencies and gives real dividends
to its token holders.
Monero (XMR)
Monero is a privacy-focused currency. The coin uses cryptography and
privacy logins to hide their users' identities. It is also known on the dark
web and is famous for its privacy measures. It is also highly liquid and is
always sitting at the top of the crypto market. It is a much more stable and
less risky form of investment.
Vechain
Vechain is a new blockchain solution provider that aims to leverage the
blockchain technology to build a trustworthy and distributed business
ecosystem which scalable. It was launched in 2017 and is focused on
implementing blockchain solutions. They have implemented blockchain
solutions successfully across several sectors and industries.
Shinecoin
Shinecoin was founded in 2017, which provides Ethereum based
cryptocurrency. Shinecoin uses a model that is designed to increase the
value of your currency. Most cryptocurrencies in the market operate on free
markets and tend to have high volatility in their pricing. One of the most
common threats is that there is no way to mitigate the risk of price volatility
in the currency. Shinecoin works on a model or price plans and actively
works towards making the currency grow stronger.
As an investor in Shinecoin, you will be a part of the money creation
process. Once you buy Shinecoin, you are contributing to its value. Once
your community grows, and more coins are created, every member will
benefit from the currency becoming stronger. As of now, the results have
been over and above expectations. The value of the currencies has increased
as per the price plan, and all the members have been able to liquidate
whenever they wanted to. It offers its investors with an opportunity to
improve their financial situation.
Ripple (XRP)
Ripple is a blockchain technology company that aims at making cross-
border payments cheaper and more secure. A lot of financial institutions use
Ripple, making it trustworthy software. However, the markets for Ripple
have seen a lot of volatility, and it would be safe to invest in Ripple only if
you are looking to wait for a longer duration
Best Cryptocurrency Exchanges
You can buy, sell or exchange cryptocurrencies for digital currency or fiat
currency. If you are looking forward to trading professionally, you can use
an exchange platform to trade. These platforms offer access to an array of
trading tools that you can use for trading. You will have to verify your ID
and open an account with them before that. There are many websites
available in the market where you can do occasional, quick trades without
opening an account as well.
Different types of exchanges
Trading Platforms
These platforms connect buyers to sellers and charge a fee to the user for
each trade. There are broadly two different types of exchanges:
Direct Trading
These platforms offer direct trading options to individuals from across the
globe. Individuals can trade directly with another individual. These
platforms don’t have a fixed market price. Every seller gets their exchange
rate.
Brokers
These are exchange platforms where any user can buy a cryptocurrency at a
defined price set by the broker. These platforms are very similar to a foreign
exchange website.
What to look out for before joining an exchange
It is important to do thorough research before you invest in
cryptocurrencies. Here is a checklist for a first-time investor:
Reputation
Do a proper review of exchange platforms and currencies. Understand how
well they are doing in the market and ask questions on open-forum like
Reddit or Bitcointalk
Fees
This is very critical. Most exchanges have their fees mentioned on the
website but keep your eye on any hidden exchange fees. Understand the
process of transaction fees and withdrawal fees. Every exchange will have
their feed model, and it’s good to do a comparison research
Payment Methods
Every exchange platform has their method of payment. Make sure you
know what different payment methods available on these platforms are. If
the options are limited, it’s probably not the most convenient platform.
Verification Process
Most trading platforms will require you to submit some ID for verification
before you make any deposits or withdrawals. Some exchanges allow you
to stay anonymous too. It is a good idea to go with the verification process
since it will protect you and the exchange from scams and money
laundering issues
Geography
Some exchange platforms and only accessible from certain countries and
are designed for specific users only. Make sure the exchange you are
signing up for offers all sorts of services in your country.
Exchange Rates
Every exchange platform has its exchange rate; you can save up a lot of
money if you do some research around that.
The Best Cryptocurrency Exchanges
In today’s world, there are tons of platforms to choose for an investor, but
not all exchanges are good and trustworthy. It is important to choose a
trustworthy exchange platform, and the following list is curated based on
reviews and other criteria such as user experience, accessibility, transaction
fees, and most importantly- security. Here is the list of the ten best crypto
exchanges:
Bitbuy.ca
Bitbuy.ca is a Canadian owner digital platform and was founded in 2013;
the company’s vision is to provide easy, dependable and secure access to
digital currencies. The customer service, use and quick transaction for
deposit and withdrawal have made this exchange one an investor favorite.
The platform is open for beginners as well as a trader and is one of
Canada’s quickest growing exchange platforms. Here are some of its pros
and cons
Pros
● Very good customer service
● Quick registration and verification
● Fast processing of CAD deposits and withdrawals
● Low transaction fees
Cons
● Only available to Canadian citizens
ChangeNow
ChangeNow is an instant cryptocurrency exchange program that provides
unlimited crypto conversions. It is a registration free platform that’s been on
the market for over a year and has earned a good reputation for reliable
transactions and great services at affordable rates. There is no need to open
an account to process transactions above 170 cryptos, and for purchasing
crypto using fiat currency. The platform has stayed honest to its customers
and does not collect inflated or hidden fees. The timing of transactions is
rather quick, and the processing speed is less than 2 minutes.
Pros
● No need to create an account
● It has listed above 170 cryptocurrency coins
● It has no restrictions – there is no cap for highest exchange amount
● There are two cryptocurrency exchange flows: standard and fixed-
rate
● It is super easy and can be purchased with credit cards
● 24/7 support team
● Has a mobile application
Cons
● No leverage- it does not offer leveraged trading on cryptocurrencies
Coinbase
Coinbase is backed by trusted investors and is used by millions of investors
worldwide. It is one of the most popular brokers and trading platform in the
cryptocurrency market. The platform is easy to use, buy and store any form
of digital currency. Investors can purchase any cryptocurrency through a
digital wallet that is available on iPhone and Android devices from
Coinbase.
● Pros: It has a good reputation, security, reasonable fees, beginner-
friendly,
● Cons: Not so great Customer support,
● Limited payment options,
● Supported in limited countries
● GDAX appropriate only for technical traders.
Kraken
Kraken was founded in 2011 and is the biggest Bitcoin exchange in
liquidity and Euro volume. It is a participant of the first ever cryptocurrency
bank. This platform allows the user to buy and sell Bitcoins and trade
between Bitcoins, Euros, USD, Canadian Dollars, British Pounds and
Japanese Yen. You can also trade other digital currencies like Ethereum,
Monero, REP tokens, Zcash, Litecoin, Ripple, Stellar and ICONOMI using
Kraken. They offer a lot of features along with margin trading. It is a great
place for experienced traders.
Pros
● Again- good reputation with decent exchange rates,
● Low transaction fees and minimal deposit fees
● Great user support, and is secured and supported worldwide.
Cons
● May not be suitable for beginners.
Cex.io
Cex.io provides a host of services for using Bitcoin and other
cryptocurrencies. The platform allows users to trade their fiat money with
cryptocurrencies vice-versa. If you are looking to trade Bitcoins
professionally, then this platform offers personalized and user-friendly
trading dashboards and margin trading. CEX also broker service, which
provides new investors with an extremely simple way to purchase
cryptocurrency at reasonable prices that are more or less in line with the
market rate. The CEX website is also secured.
Pros
● It is a good mobile product,
● Supports credit cards, friendly for novice users,
● Provides decent exchange rate, supported worldwide,
Cons
● Stringent verification
● Fees may change depending on the payment mode
ShapeShift
This is another leading exchange platform that provides various
cryptocurrencies to trade with. If you want to make instant and quick trades
without signing up to an account, you can rely on this platform. Shapeshift
users cannot make payments using debit cards, credit cards or any other
payment system. The platform has a no fiat money policy and only allows
for the exchange between Bitcoin and the other supported cryptocurrencies.
● Pros: Tons of Cryptocurrencies available for exchange, fast,
reasonable prices.
● Cons: Average mobile app, no fiat currencies,
Poloniex
Poloniex was established in 2014 and is a primary global cryptocurrency
exchange that offers a safe trading environment and a wide range of
cryptocurrency pairing and advanced tools with data analysis for investors.
Data analysis for advanced traders. Since it is one of the most popular
trading platforms with very high volumes, users find it very easy to close
their transactions. For makers, fees range from 0 to 0.15%, and for takers,
fees range from 0.10 to 0.25%. One of the unique features on the Poloniex
platform is the chat box that is constantly filled with user help. A user can
write almost anything- moderators eventually delete only the inappropriate
comments. It can sometimes be hard to distinguish the good advice from the
bad, but the Chatbox is a great tool that will keep you educated at all times.
Pros
● Fast account creation, Amazing features,
● High-volume trading and low trading fees
Cons
● Slow customer service
Bitstamp
Bitstamp is an EU based Bitcoin exchange platform founded in 2011. The
platform is one of the first generation Bitcoin exchanges and has a loyal
customer base. It is one of the most trusted platforms throughout the Bitcoin
community and provides cutting-edge safety features such as two-factor
authentication, cold storage insurance and multisig technology for its
wallet. The support team is also very good and provides 24/7 support with a
multilingual user interface; therefore, getting started is relatively easy.
Users can start trading immediately after opening an account.
Pros
● Good reputation, very high-level security,
● Available worldwide with low transaction fees
Cons
● High deposit fees
CoinMama
CoinMama is a veteran broker platform, and any user can visit here to
purchase Bitcoin or Ether using cash via MoneyGram or credit card. It will
work great for you if you want to make instant purchases using their local
currency. The services are available worldwide, but it might be banned in
some countries. The platform is available in English, German, French,
Italian and Russian.
Pros
● Great user interface, good range of payment options
● Available worldwide, quick transaction time.
Cons
● High exchange rates, a premium fee for the credit card, average
user support.
Bitsquare
Bitsquare is a peer-to-peer exchange that allows you to buy and sell
Bitcoins in exchange of fiat currencies or cryptocurrencies. They market
themselves as a truly decentralized and peer-to-peer exchange that is
instantly accessible and requires no need for registration. They never hold
user funds, and no one can exchange personal data here. The platform is
highly secure and offers multiple addresses, security deposits and purpose-
built arbitrator system in case of trade disputes. If you want to remain
anonymous and trade, Bitsquare is the perfect platform for you.
Pros
● Good safety and privacy features along with the availability of a
large number of cryptocurrencies
● Reasonable fees
● Accessible globally
● Perfect for advanced traders.
Cons
● Limited payment options, average customer support
LocalBitcoins
This is a P2P exchange platform with several buyers and sellers from
around the globe. With LocalBitcoins, you can contact people from your
local area, and deal Bitcoins in cash, PayPal or can deposit cash at their
bank. The commission charge of LocalBitcoins is around 1% for the sellers.
The platform takes a number of precautions to ensure trading is secure.
They have reputation rank system of all their users that is displayed
publicly. In the event of a conflict, LocalBitcoins’ support and conflict
resolution team intervenes and personally resolves these conflicts.
Pros
● Beginner, friendly and usually free
● Available worldwide
Cons
● High exchanges rates
LinkCoin
LinkCoin is a cryptocurrency exchange in Canada. LinkCoin processes
transactions autonomously using smart contracts.
It is also a functional website, along with an Android + iOS app, the
platform has the necessary technological infrastructure to meet the
investment needs of all its user. They have seven cryptocurrencies available
for purchase as of now. They also offer some of the lowest transaction fees
in the industry, which makes buying and selling cryptocurrencies as
affordable as possible. They accept in several forms.
● Pros: Very cheap to sell and free to buy, high privacy and security
along with lots of payment options.
● Cons: Limited volume
Binance
If you are interested in crypto-to-crypto trading, then Binance is one of the
best options. It is ranked as one of the most reputed cryptocurrency
exchanges in the world. Binance provides users with impressive offerings
clubbed with an extremely low trading fee. Even though Binance was a
young entry in the market, it is rapidly growing and holds a huge selection
of altcoins. The exchange also offers its coin, known as BNB. The standard
trading fee is only at around 0.1%, which can even be reduced further if the
payment is made within BNB.
● Pros: Very cheap to transact and is available worldwide.
● Cons: No fiat trading.
Gemini
Gemini is a fully regulated, licensed Bitcoin and Ether exchange. Their
regulatory standards are very similar to a bank. Gemini trades in three
major currencies - US dollars, Bitcoin, and Ether. This platform does not
serve traders with other cryptocurrencies. The platform is only fully
available to customers in 42 US states, Canada, Hong Kong, Japan,
Singapore, South Korea and the UK.
Pros
● Security & Compliance
● User-friendly along with great analytics
Cons
● Limited currencies, small community because of limited worldwide
availability
Huobi
Huobi is a San Francisco based exchange provider and is one of the world’s
largest digital asset trading and management service providers. Huobi is
only available to residents of China and USA barring the residents of
Arizona, North Carolina, Alabama, Connecticut, Louisiana, Georgia, New
York, Vermont, Hawaii, Washington, and all US Territories. Huobi provides
a wide variety of coin trading options (more than 50 pairings). They also
have a great support team as they offer their customers around the clock
customer support for free. Charges for trades in USD are .1% irrespective if
it is the maker or taker; trades between crypto-to-crypto are .05%.
Pros
● High end Data Analytics and reports
● Around the clock Customer Support for users.
Cons
● Only Available to Chinese and Some US Residents, USD is the only
Fiat currency supported by the platform.
In a nutshell
It is ideal for picking the right exchange currency platform for your specific
needs. It might be difficult and time-consuming but still a very important
process. Always pay attention to details like transactions fees, the
reputation of the exchange platform, security process and the services it
offers to its customers. Remember that you can diversify this further by
investing in more than one cryptocurrency exchange. This way, you can be
a better judge for all your future investments, and it will also mitigate your
risk of loss.
Conclusion
We have finally covered all the basic aspects to look at before you invest in
the Cryptocurrency market. With this, the book almost comes to an end, and
I would like to thank you for choosing this book - Cryptocurrency for
Beginners: Guide to the most common cryptocurrencies and altcoins’
I hope that you found the contents of this book useful and that it educated
you on making sound investment decisions. The book covers everything
you need to know about cryptocurrency, blockchain technology, different
types of currencies and exchange platforms, and gives some tips on
investments. There is a chapter dedicated to explaining to you about
investing in cryptocurrency and all the things you need to take care of
before you invest.
The primary objective of the book was to give you a basic tour of the
cryptocurrency world, and I hope that this book has served its purpose. The
book also provides a quick overview of the different exchange platform and
different currencies (altcoins). Some chapters have emphasized on the
following a particular strategy before investment.
As mentioned earlier, the book will only give you a tour of the
cryptocurrency world, and the respective investor must take up total
ownership of their investment and do thorough research from their end to
make sure their investments are safe and secure. You need to understand the
mechanism and technology that oils the cryptocurrency market. One must
follow trends and do a lot of research before making any form of
investment. Diversifying is key and has been mentioned in several chapters
of this book.
I truly hope that this book was useful and has helped you answer a lot of
your questions around cryptocurrency. I wish you luck on your endeavors
of investment and carrying out your first-ever cryptocurrency portfolio
tailored to your needs and risk appetite.