YELLOW CARD AMBASSADOR PROGRAM

BA TRAINING

CRYPTOCURRENCY/ PRODUCT TRAINING.

TOPICS
● What is Cryptocurrency
● What is Bitcoin
● What are Stable coins
● How does Yellow Card work
● How to deposit money on Yellow Card
● How to buy cryptocurrency on Yellow Card
● How to complete KYC on Yellow Card

LESSON 1

WHAT IS CRYPTOCURRENCY
https://academy.yellowcard.io/topics/what-is-cryptocurrency/

Cryptocurrencies have existed for over a decade now. With each passing day, people

are becoming more aware of what they are, their use cases, and why they are so

popular. You must have heard of cryptocurrencies such as bitcoin, ethereum, Litecoin,

Dogecoin, and Ripple, among several others. Hundreds of different cryptocurrencies are

being created, with each having different use cases. Cryptocurrencies are digital

currencies that are fast reshaping the traditional financial system. They offer the

benefits of traditional fiat currencies and a lot more, which has made them the interest
of millions across the globe. Cryptocurrencies are slowly becoming a must to learn

about as their revolutionary nature changes the world as we know it.

What are cryptocurrencies?

Cryptocurrencies are digital currencies. Unlike fiat currencies, they cannot be touched

or moved physically. Another distinctive feature of cryptocurrencies is that they are

typically decentralized. This means that they are not managed by the central bank,

government, or other central authorities. Instead, they are run by thousands of computer

nodes across the globe -- that is, individuals operating their computers from across the

globe.

Transactions involving cryptocurrencies are stored on a decentralised ledger called the

blockchain. The information on this ledger is almost impossible to modify or delete,

making cryptocurrencies very secure to use as they cannot be manipulated. Another

vital detail to note about cryptocurrencies is that they usually operate on a peer-to-peer

network. This means that cryptocurrencies can be exchanged directly between

individuals without the need for a middleman.

What is cryptography?

Cryptography has existed long before the digital era. It generally involves masking

information or data to protect it from getting into the wrong hands. Perhaps, once or

twice, we may have tried encoding information that is to be sent to a friend. The friend

has the format to decode the said information; however, it might be unintelligent or

mean something entirely different to an outsider. Cryptography works in this format to

protect data.

Cryptography is a process undertaken to encode or encrypt plain words or instructions.

It also involves decoding and decrypting data or information. The goal is to secure data

and information from hackers through a series of encryptions. Data or information is

encoded through a series of mathematical theories and computation processes.

Information can then be distributed across nodes of even unsecured networks. Only the

set receiver can understand the information or instructions sent.

Cryptocurrencies are built around cryptography which ensures their security and makes

it difficult to manipulate. Cryptography allows cryptocurrency to maintain its

decentralised nature securely and ensures that only valid blocks are introduced

because of its set codes and protocol.

Formation and History of Cryptocurrency

The idea of the existence of digital currencies has been around since the end of the

20th century. That idea was first shared with the world by David Chaum, cryptographer,

when he came up with ecash which was an electronic money that used cryptography to

protect users’ identity. He implemented the idea through Digicash in 1995 but the

company declared bankruptcy 3 years later. Although Digicash used cryptography

protocols to encrypt data about a person withdrawing money from a bank and sending

to another party, it was basically a way to ensure that electronic transactions were

untraceable.

In 1998, Wei Dai and Nick Szabo described other electronic cash systems called

b-money and bit gold respectively. The concept behind these ideas was the existence of

anonymous electronic cash. But these concepts were never implemented.

It wasn’t until 2009 that the first cryptocurrency, Bitcoin, was created. Bitcoin was

developed by a person or group of persons under the pseudonym, Satoshi Nakamoto.

Bitcoin was first mentioned in a white paper titled "Bitcoin: A Peer-to-Peer Electronic

Cash System”. Since the creation of bitcoin, other cryptocurrencies have been created

similar to Bitcoin and others quite distinct from it for specific purposes.

Cryptocurrencies are built on a blockchain; for instance, bitcoin is built on a bitcoin

blockchain. The blockchain contains all the transactions on bitcoin and records them as

blocks. New blocks are added to the blockchain through mining which involves

validating the authenticity of blocks added to the blockchain network for a reward.
Differences between fiat currencies and cryptocurrencies

Fiat currencies and cryptocurrencies are used to facilitate transactions and can be used

as a store of value. Yet, certain distinct features differentiate fiat currencies and

cryptocurrencies that help explain crypto better.

Tangibility

Cryptocurrencies are entirely electronic and can only be exchanged digitally while fiat

currencies can be touched and handled physically.

Centralised/decentralised nature

Fiat currencies are issued by a central authority or governing body responsible for

issuing and keeping transactions of the currency. Cryptocurrencies, on the other hand,

are not issued or run by a governing authority but thousands of nodes spread across

the globe.

This introduces another feature of cryptocurrencies which is pseudonymity. This means

that cryptocurrencies provide a level of anonymity that allows anyone to perform

transactions without revealing their private details. All transactions performed by a

person are however tied to their bitcoin address. Banks, however, require that you

reveal your personal details to own an account to store fiat currencies.

Cryptocurrencies are borderless because of their decentralised nature, which means

cryptocurrencies can go anywhere at cheaper transaction rates and faster. Fiat

currencies are usually tied to a particular country or region and one would need to

exchange their local currency, say Ghanaian cedis, for another country’s currency, say

rand, if they were to travel to South Africa.

Supply limit

Fiat currencies often do not limit how much of their currencies can be in supply.

However, many cryptocurrencies are structured to have a finite or limited supply. For

instance, there can only be 21 million bitcoins in supply. The limited supply of

cryptocurrencies such as bitcoin makes it resistant to inflation (deflationary), making it a

great store of value.

Legality status

Fiat currencies are considered legal tender by central authorities, which means

residents and businesses must accept them. However, cryptocurrencies are not by

default legal tender, country-specific laws determine if they are accepted or not within

that territory. This is why it is recommended that you research existing laws within your

country of residence to confirm if the use of crypto is allowed.

Exchange medium
Fiat currencies can be exchanged physically (direct contact) and digitally (banking app,

payment platform apps such as PayPal). However, cryptocurrencies can only be

transferred digitally. Therefore, you need a cryptocurrency wallet to exchange

cryptocurrencies.

Storage

Fiat currencies can be stored in cash or in banks and accessed electronically.

Cryptocurrencies are stored in a crypto wallet, either cold or hot storage.

What are private and public keys?

When you open a cryptocurrency wallet, you are issued a public and private key. Think

of the public key as an account number. In order to receive funds or information, you

would need to share your account details with others. The private key is also similar to

your password or ATM PIN that allows you to access the funds in your account. You are

expected to keep the private key securely. It is structured to grant you access to the

cryptocurrencies locked in your wallet. Anyone can access these cryptocurrencies as

long as they have your private key.

Now that you have understood the basics of how the private and public key operates

let's dive deeper. The public key is an alphanumeric string of numbers and words. It

may also be a QR code shared with others to receive cryptocurrencies, but that's not all.

The blockchain is like a public ledger that holds all the cryptocurrency transactions, for
instance, bitcoin. The bitcoin blockchain displays all the bitcoin transactions for

everyone willing to see it from the time bitcoin was created till the present. The public

key is an identifier used while recording each transaction.

Therefore, although people don't know who owns the public key, they can see all the

transactions that have taken place on the public key. They can see the amount of

bitcoin a person holds and every address they have received bitcoin from and sent it to.

Yet, your identity remains anonymous as people can only see the public key and its

transactions but do not know the public key owner.

The private key is used to secure your account from thefts, fraudsters among many

others. Yet, unlike your ATM pin, which you can change at will, you cannot change your

private key or recover if lost except if it is backed up. The best way to secure your

private key is never to share with others, as access to your private key means that your

cryptocurrencies can be accessed anytime and from anywhere in the world. This means

that although anyone can see the transactions on your public key, you are the only

person that can initiate those transactions with your private key.

It is vital that you store your private key securely. Several people consider

cryptocurrency exchanges like Yellow Card to secure their private keys in a hot wallet.

This allows them to securely safeguard their private keys and access their

cryptocurrencies from the exchange through two-factor authentication. Still, this time it is

through passwords they have set for themselves, which is easier to remember. Apart
from this, their information is backed up, which means that they can recover it following

a security and verification process if they lose their passwords. An alternative to

securing your private key is storing it offline: on a computer without internet, pieces of

paper, or even memorising it.

About now, you may be wondering how cryptography comes into place in securing your

crypto funds. The public key and private key are synced; the public key is generated

from the private key. This is why you can initiate and verify a transaction with your

private key. The transactions are initiated on the blockchain and need to be verified

before they can be processed. The transaction is encrypted on the public key and can

only be decrypted by the private key. Once you have confirmed that the transaction is

authentic through your private key, it can then be processed. Anyone who doesn't have

the right key has the transaction falsified and dismissed.

Use cases of cryptocurrencies

Cryptocurrencies are revolutionary and are gradually changing the economic and

financial ecosystem because of their numerous uses. Cryptocurrencies can be used to

send funds from person to person irrespective of their geographical location at a faster

and cheaper rate. You can use cryptocurrencies to pay for products and services.

Cryptocurrencies can also be used as a store of wealth to protect your funds from

inflation which fiat currencies are subject to.

Cryptocurrencies can also be considered short-term or long-term investments. You can

earn profits from crypto trading and even investments in crypto projects like mining,

staking, yield farming, loaning, among others. You may also borrow crypto loans and

use them for your financial needs. You can even use cryptocurrencies as collateral

when collecting these loans.

How to buy cryptocurrencies

As crypto adoption is on the increase, you might just be curious about how to purchase

cryptocurrencies. Cryptocurrencies are structured to be bought peer-to-peer, so you can

easily purchase cryptocurrencies directly from an individual at a bid-ask price that suits

you. However, new risks have developed with purchasing cryptocurrencies directly as

fraudsters and scammers are masked as crypto traders. This is why cryptocurrency

exchanges like Yellow Card are popular among people as you can purchase

cryptocurrencies directly and securely from Yellow Card.

Conclusion

Since the creation of bitcoin, several cryptocurrencies have been created, many of

which have also been successful in their own right. Different variations of

cryptocurrencies have also been created, such as stablecoins, Non-fungible tokens

(NFTs), among several others. Cryptocurrencies are built to solve the limitations of fiat

currencies and bring banking closer to the underbanked and unbanked.

LESSON 2

WHAT IS BITCOIN

https://academy.yellowcard.io/topics/what-is-bitcoin/

The past few years have recorded technological advancement across the globe. One of

such significant changes in the financial market is the introduction of digital currencies,

which eliminates the challenges that occur when completing transactions with fiat

currencies such as dollars, yen, pounds, naira and many more. One of such

preeminent digital currencies is Bitcoin.

Introduction to Bitcoin

Bitcoin is a digital currency that is created, distributed and stored on the public

decentralised ledger known as the blockchain. The blockchain uses peer-to-peer

technology to connect thousands of computers around the world to operate seamlessly.

You can think of bitcoin as a form of electronic money except that, unlike the types of

money we are familiar with, bitcoin is fully digital and operates out of the control of any

central governing authority.

Because bitcoin is digital, decentralised and encrypted, it has fast become a preferred

medium of exchange around the world. And as its adoption increases, more people

keep finding new ways to use bitcoin and simplify their everyday transactions.
Before we get into why bitcoin is so special, let’s take a quick look at the history of the

world’s foremost cryptocurrency.

History Of Bitcoin

Since bitcoin gained popularity and its benefits have become apparent to both financial

experts and regular individuals, many have wondered why it took so long for someone

to come up with the brilliant idea that birthed bitcoin. However, while bitcoin was indeed

the first implemented cryptocurrency, the likes of Bit Gold and B-money were proposed

years before bitcoin but never implemented. Some of these ideas, though, were useful

in the creation of Bitcoin.

And since its launch, Bitcoin set a precedence for other currencies because of its

revolutionary nature and its ability to cover loopholes that other proposed digital

currencies had missed.

Bitcoin was introduced by Satoshi Nakamoto, an alias of a person or group of persons.

To date, no one knows the real identity of Nakamoto. And if you were wondering who

the mysterious person could be and what led to the creation of Bitcoin, we discussed

that in Who created Bitcoin?

For the purpose of this lesson, here’s a brief history of Bitcoin:

Aug. 8, 2008
The domain name bitcoin.org is registered. Today, this domain is "WhoisGuard

Protected," meaning the identity of the person who registered it is not public information.

Oct. 31, 2008

An unknown person or group of people with the pseudonym Satoshi Nakamoto

publishes the Bitcoin whitepaper on the cryptography mailing list at metzdowd.com. The

paper was titled, “Bitcoin: A Peer-to-Peer Electronic Cash System” and is now available

at https://bitcoin.org/bitcoin.pdf. It serves as a guide for how Bitcoin operates today.

Jan. 3, 2009

The first Bitcoin block, Block 0, is mined. This is also known as the Genesis Block and it

contains the text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for

banks". It is assumed that this was added as proof that the block was mined on or after

that day and perhaps also as a relevant political commentary.

Jan. 8, 2009

The first version of the Bitcoin software is announced on The Cryptography Mailing List.

Jan 9, 2009

Block 1 is mined.

Features of Bitcoin
There are certain features that set Bitcoin apart from fiat currencies; they include:

1. Pseudonymous

What this means is that when people make transactions using bitcoin, the wallet

addresses involved have no visible identifier and personal information cannot be linked

to them. But these transactions can be tracked on the bitcoin blockchain as everything

is transparent, showing fully what transpired and at what time.

● Decentralised

Bitcoin is not regulated by any central authority like a government, a central bank or any

committee. Rather, people with powerful computers (known as nodes) connect to the

Bitcoin network from all over the world and are all in charge of keeping the network

online. This means that before any changes can be made on the network, the

participants on the network must reach a consensus.

The implication is that no one person has the power to make changes on the Bitcoin

network, and all transactions do not need to go through one central point before they

can be completed.

● Secure
Bitcoin offers a reliable platform to complete transactions with low transaction fees. One

of the notable features of Bitcoin is that it is non-refundable. This eliminates the

possibility of you getting defrauded with a fake transaction because once a transaction

is completed on the Bitcoin network and is confirmed on the blockchain, it is locked in.

For a confirmed transaction to be altered, it would take altering every transaction that is

confirmed after it - which is virtually impossible for any person to do.

● Fast

We are well familiar with delays with transactions while completing payment with

physical currencies, even when operating cashless. Transactions on the Bitcoin network

are almost instant. It takes merely a few minutes to complete a transaction, and you do

not have to worry about delayed transactions.

How Does Bitcoin Work?

Bitcoin transactions aren't the same as with fiat currencies like dollars or pounds. Bitcoin

transactions take place on an open ledger known as the blockchain. The Blockchain

contains the details of all transactions made on the network.

For example, if you want to transfer $1,000 worth of Bitcoin to a friend, it follows this

process:
 1. you send the current BTC equivalent of $1,000 to the Bitcoin Address of your

friend and the transaction is broadcasted on Bitcoin’s peer-to-peer network.

2. A Bitcoin miner adds the transaction details to the Blockchain by solving a

computational problem.

3. The amount of BTC sent is added to your friend’s BTC balance.

4. All nodes connected to the Blockchain are updated with the transaction and

balances of the transacting addresses.

Bitcoin miners are very important to the working of the Bitcoin Network. Without miners

to confirm and add transactions, the whole network doesn’t work because then, we

would experience issues like double spending where one person can spend the same

bitcoin twice - it is like duplicating a digital file and sending it to two different devices.

Issues like this compromise the Bitcoin Network and is why miners are necessary.

Bitcoin Mining

Even though bitcoin is said to be mined, the mining process is very much different.

While gold miners need to dig deep into the ground, Bitcoin miners can find Bitcoin in

the protocol’s design.

The Bitcoin protocol is designed in such a way that only twenty-one (21) million BTC

can exist. And the only way new bitcoins are obtained is when new blocks are added to

the blockchain.
For the Bitcoin network to work, there has to be a way to ensure that the integrity of the

network is maintained. This would make sure that there are no issues of double-spend

or the addition of fake blocks of transactions to the blockchain, amongst other things.

This is why miners exist -- to keep the network operating as it should. But for them to

want to do this, they have to be incentivised. The creation of new bitcoins (mining) is

how these miners are incentivised.

Bitcoin Scalability

Scalability centres on the ability of a system to expand and accommodates its

increasing demand. For instance, to improve a website's efficiency to accommodate its

growing users, it needs to be scaled by including more servers. Bitcoin scalability

centres on improving the Bitcoin network such that it can accommodate and process an

increased number of transactions.

It is important for Bitcoin to scale because of its increasing number of users and the

need to meet their daily demands. However, because of the Bitcoin protocol design,

there is a limit to the number of transactions that miners can process per block.

Presently, the Bitcoin network can only manage to process about five transactions per

second, which is relatively lower than most centralised exchange solutions.

A Bitcoin upgrade that could allow about ten thousand (10,000) transactions per second

may be included in the system, but that might essentially threaten its decentralised
nature. In this regard, Bitcoin experts recommend that effective scaling needs to be

attained for the network's efficiency. This contributed to the fork in Bitcoin’s network that

resulted in the creation of Bitcoin Cash.

Pros and Cons of Bitcoin

Every system has its pros and cons and so does Bitcoin. Lets’ briefly consider these.

Pros

1. Freedom and ease of access

Trading with bitcoin allows you to trade outside of the control of governing

authorities. This will enable you to keep your details private and easily access

your funds. Governing authorities are unable to control your transactions as well

as impose fees.

2. Security

Trading with digital currencies offer a safer means to complete transactions. You

are able to control your transactions, and no one is able to withdraw money from

your account without your approval. It is very difficult to steal your payment

information. The Bitcoin protocol is secured with encryption, which makes it

difficult for an organisation or individual to manipulate or control it.

You could also secure your funds with encryptions and create backup copies.
 And more importantly, your identity and personal details are safe and do not

need to be disclosed to complete a transaction.

3. Transparency

Unlike other currencies, which are physical and are controlled by governing

authorities, the details of bitcoin transactions are available for anyone to see on

the Blockchain. You can easily monitor transactions on your own without having

to contact an external service provider.

4. High portability

Bitcoin is a digital currency which makes it the most portable currency ever to

exist. You can easily carry millions without it having to cost you any extra weight

or space. You can store your coins in any form of Bitcoin Wallet and take it with

you anywhere, regardless of how much you have.

You can also complete transactions in minutes with just a click, saving you from

outrageous fees without any stress to you.

Cons

1. Legal status

In some countries, crypto trading is encouraged while it is considered illegal in

other countries. There has been a lot of criticism surrounding the attractiveness

of bitcoin to criminals. As such, you should confirm your state's take on Bitcoin

before you start trading with crypto.

 2. Possible loss of access

Bitcoin can be accessed through a Bitcoin Wallet that stores the private and

public keys to a Bitcoin Address. Without the private keys to an address, you

cannot access the Bitcoin in it. And when proper care is not taken, it is easy to

lose your private key which means you also lose access to your Bitcoin. In order

to prevent this, however, there are certain wallets that are structured with backup

mechanisms to safeguard the key.

3. Volatility

In the past few years, the price of Bitcoin has varied, experiencing spikes as well

as skyrocketing within short intervals. This often makes the value of Bitcoin

unpredictable and unreliable as a form of payment for goods and services.

However, Bitcoin is undergoing certain developments and acceptance across the

globe that has set it to a steady rise in value. And as adoption rises, it is likely to

reduce the volatility over time.

What makes bitcoin valuable?

Bitcoin is a valuable asset that is decentralised, secured, faster, and free from governing

authorities' control, allowing its users' freedom to complete their transactions securely.

These features have made it valuable to its many users across the globe. Individuals

are able to conduct international transactions with minimal transaction fees.

However, this isn't the only reason why bitcoin is so valuable. Investors have found a

nest in bitcoin as a form of digital gold. This is why many, rather than use it for only

transactions, prefer hodling it. Bitcoin is seen as a scarce commodity with a limited

supply that can be profitable when stored up.

How to access bitcoin

Bitcoin can neither be printed nor handled physically. It can only be accessed through

mining or buying from someone who already owns it. However, only 21 million bitcoins

can exist and once all 21 million bitcoins have been mined, one would only be able to

get bitcoin from those who already own it.

The easiest way to access bitcoin is to buy from other people or from exchange

platforms. You can buy bitcoin with cash, bank transfers, debit or credit cards, or other

cryptocurrencies. But you need a Bitcoin wallet to hold bitcoin.

Bitcoin Wallet

The Bitcoin wallet is a digital software program that enables you to buy, sell, or hold

Bitcoin. This wallet contains a unique set of keys that are needed to complete

transactions on the BTC network. The key provided in the wallet corresponds to your

Bitcoin address. There are four types of Bitcoin wallet that is the desktop, hardware,

mobile, and web.

Yellow Card wallet allows you to trade Bitcoin and offers an offline wallet where you can

hold your Bitcoins. You will need a cryptocurrency wallet if you want to trade Crypto

because the wallet holds the unique key combination to enable transactions on the

network.

How to buy Bitcoin

You can buy bitcoin using cash, credit, or debit card or exchange other Cryptocurrencies

for some BTC. The steps to purchasing Bitcoins include:

● Get a wallet: Regardless of your preferred method of purchase, you need a

Bitcoin wallet.

● Select an exchange platform: Bitcoin exchanges are the easiest places to buy

bitcoin safely. Many exchanges offer the creation and maintenance of wallets so

that when you purchase bitcoin, you can hold it directly in your wallet on the

exchange. There are hundreds of these exchange platforms in operation with

varying policies on security, payment options, transaction fees, exchange rates,

and many more. You should conduct proper research before selecting an

exchange platform.

● Fund your account: based on the accepted payment method on the chosen

exchange, you would need to add funds to your account. On exchanges like

Yellow Card that allows you to buy bitcoin with cash, all you need is to pay cash
 for the amount you want to fund your wallet with and get a voucher that you can

redeem on the platform.

● Buy Bitcoin: Once your account is funded, you can then purchase bitcoin. After

the transaction is complete, you would receive the corresponding amount of

bitcoin purchased in your wallet.

How to sell Bitcoin

You can use the same avenue implemented in purchasing your bitcoin also to sell them.

However, while you can buy bitcoin through Bitcoin ATMs in some places, not all Bitcoin

ATMs allow you to exchange bitcoin for cash. You can sell bitcoin on:

● Cryptocurrency exchange platforms: The platforms you use to sell your Bitcoin

may be dependent on the amount of Bitcoin you wish to trade. Some platforms

may be programmed only to receive large orders, while others allow you to sell

any amount on their platforms.

Each crypto exchange has its specific policies and exchange rate, so it is best

that you are well informed about these policies before selling your Bitcoin. You

also have the option to exchange your Bitcoin for other Cryptocurrencies

depending on your exchange platform.

● Peer-to-peer sales: With peer-to-peer, you can send bitcoin directly to the wallet

of someone else while they pay you via your preferred method. That means you

can sell bitcoin to family, friends, or colleagues and have them send cash to you.
 Some exchanges facilitate peer-to-peer trading amongst their customers such

that you can sell to someone who you don’t know and have them send money to

you. Escrow systems are usually put in place to ensure that both parties fulfil

their end of the deal.

You can easily access, buy and sell Bitcoins using these platforms with no hitch.

However, it is best to be well informed about your options before buying or selling on the

selected platform to prevent any glitches.

Factors Affecting the Price of Bitcoin

Bitcoin isn't controlled by a centralised authority. No one person, entity or organisation

determines the price, economic growth, and inflation except the open market and the

general public. And how do they do that? Via the following:

● The demand and supply of bitcoin - like in every other market, the price of Bitcoin

is largely influenced by the current rate of demand and supply. When there is an

increase in institutional investment and media coverage, for instance, an

increase in demand tends to occur, which will drive up the price of Bitcoin.
 ● The reward of mining bitcoin - as Bitcoin halving occurs, it reduces the amount of

bitcoin that goes into circulation. The reduction in supply will affect the price of

Bitcoin.

● Bitcoin adoption across the globe - Paypal recently announced that it would be

allowing customers to pay vendors with Bitcoin. With over 26 million merchants

across the world now able to accept bitcoin as a form of payment for goods and

services, this widens the reach of Bitcoin. It will also influence the price as more

people now seek to own the cryptocurrency and use it for payments across

borders where their local currencies may not serve them.

● Policies adopted by governing authorities in relation to cryptocurrencies will affect

the price of Bitcoin. For instance, some countries are embracing cryptocurrencies

and working on regulations that will promote their proper use while some others

are banning their usage.

LESSON 3

WHAT IS TETHER (USDT)

Tether is a blockchain-based cryptocurrency whose tokens are backed by fiat currencies

like the US dollar, euros or cash equivalents, which are held in reserve by Tether

Limited. Tether (USDT) is a type of cryptocurrency known as stablecoins. Stablecoins

are a type of altcoins that are backed by fiat currencies so that they can have the price

stability of the currency they are pegged to.

How Tether (USDT) works

Cryptocurrencies like bitcoin are known for their high volatility which leads to

fluctuations in prices. And despite the solutions they provide as a medium of exchange

and investment opportunities, this high volatility is a cause of concern for many

cryptocurrency users around the world. In addition, access to cryptocurrencies with local

currencies may prove to be challenging in some instances. But, Tether presents a

solution to these challenges.

Tether is a type of stablecoins specifically known as fiat-backed stablecoins. This is

relevant because not all stablecoins are backed by fiat currencies. Some are backed by

commodities like gold, other cryptocurrencies like ether, or not collateralised at all. In the

case of USD tether, however, there are actual US dollars held in a bank to back every

tether token issued by the company. That means for every US dollar in Tether reserve,

there is an equivalent tether token mined. So, 1 tether token has the same value as 1

US dollar.

Essentially, a tether token has both the characteristics of fiat money and a

cryptocurrency. So, if you have US$100, you can purchase exactly 100 USDT with it.

But you can do more with it than you can with your fiat money because it exists on the
blockchain which inherently provides benefits such as transparency, security and ease

of transacting.

Advantages of Tether (USDT)

USDT offers amazing opportunities for many, especially those living in countries with

weak economies. We will highlight some of those benefits below:

● USDT provides a hedge against weak currencies: In a country like Nigeria that

frequently experiences inflation and devaluation of its currency, USDT offers a

solid alternative. With USDT you can easily save your money and retain its

original value despite devaluation.

● USDT provides a hedge against cryptocurrency volatility: As the adoption of

cryptocurrencies is on the rise, there are still concerns for many when using

cryptocurrencies as either medium of exchange across borders or as an

investment vehicle, and it is majorly around the price volatility. Although this

volatility serves an advantage for entering and exiting the market easily, it might

not be as good for holding the value of money.

Since Tether, however, is a stablecoin, it serves as a good store of value for not

just fiat currencies but other cryptocurrencies as well. Say, for instance, you buy

$100 worth of bitcoin and after a while the value increases, but then the market

turns bearish. To maintain the new value of your investment you can convert your
 bitcoin holding easily to USDT, this way, regardless of the dip bitcoin

experiences, your earnings plus your original investment will be intact. In fact,

this way, you can buy bitcoin back when the market starts to improve at a lower

price.

● USDT is easier to access: You might be wondering why you couldn’t just save

your money in US dollar instead. Well, one of the advantages of many

cryptocurrencies is that they are decentralised. This means that no government

controls its issuance. This makes it easy for you to purchase USDT from

anywhere in the world without worrying about cross-border restrictions. And since

tether is backed by actual fiat reserve, it does not have a supply limit. So as long

as there is money in the reserve, you can always buy tether tokens easily.

● USDT provides ease of transacting: Because tether tokens are pegged to fiat

currencies, it makes it easy to make payments with them without worrying about

the disparity in value. Also, tether makes it possible to send money overseas at

no extra transaction cost and faster than fiat payments, thanks to blockchain

technology.

Challenges facing Tether

Today, Tether is the most popular stablecoin in circulation. Most cryptocurrency

exchange platforms offer tether pairs to their users so that they can easily trade
cryptocurrencies. However, tether has faced many challenges since its creation; the

most notable one has to do with tether reserves.

Proof of reserve

When tether was created, the company claimed that every tether token is backed by an

equivalent dollar in reserve. But as the use of tether grew, the issuance of tether tokens

ran into billions which began to raise doubt as to if the company actually had the

reserve to back all the tokens in circulation. In response to this, Tether Limited

announced a scheduled audit to verify reserves backing, however, the audit never

came.

In 2019, the company changed the backing of tether to not just money in reserve but

also pans to affiliate companies as well as clarify that each tether token was backed by

only $0.74. While these controversies have raised some doubt about the transparency

and reliability of tether, the stablecoin has nonetheless remained the top favourite by

traders and investors around the world. Tether Limited also began to publish a daily

report of its reserve for the sake of transparency.

How to buy Tether

As a company whose mission is financial inclusion for all, Yellow Card makes it easy for

anyone to buy, send, receive, sell and even store Tether (USDT) with the Yellow Card

app.
In 3 simple steps, you can take your fiat money or your Bitcoin and convert it to USDT

easily. Here’s how to save USDT on Yellow Card:

1. Download the Yellow Card App or create an account online. This automatically

creates a Bitcoin, Ethereum and USDT wallet for you.

2. Deposit your fiat currency into your wallet via instant bank transfer, cash or your

debit card.

3. Buy your preferred amount of USDT with your deposited fiat currency. Your

USDT wallet will be instantly funded.

That’s it!

You can store your USDT in your Yellow Card wallet for as long as you want or sell it

whenever you want to convert it back to your local currency.

You may also send USDT to friends and family anywhere in the world by having them

sign up on Yellow Card or to an external wallet at no fees from Yellow Card. With this,

you can easily attain financial freedom by meeting your financial goals early.
LESSON 4

HOW DOES YELLOW CARD WORK

https://help.yellowcard.io/article/220-how-does-yellow-card-work

Yellow Card is a cryptocurrency exchange on which you can buy or sell supported
cryptocurrencies with your local currency.

Yellow Card also offers a secure cryptocurrency wallet with which you send, receive,
and store your cryptocurrencies. You gain access to your personal crypto wallets
once you sign up for a Yellow Card account.

How to buy cryptocurrency on Yellow Card

To buy any of the supported cryptocurrencies on Yellow Card, follow these simple
steps:

1. Sign up for a Yellow Card account or log in to your account if you are an
existing user
2. Fund your local currency wallet using your preferred payment option.
(here's how to fund your wallet)
3. From your dashboard, select a cryptocurrency you will like to buy
4. Tap "Buy" and enter the amount of crypto token you want to buy
5. Review and confirm the details.

Once you confirm the details your wallet will be instantly credited with the tokens you
just bought.
Buy Cryptocurrency Now

How to sell Cryptocurrency on Yellow Card

To sell cryptocurrency on Yellow Card, simply follow these steps:

1. Sign up for a Yellow Card account or log in to your account if you are an
existing user
2. From your dashboard, select the cryptocurrency you want to sell or go to
"Wallets" from your dashboard.
3. Tap "Sell" and enter the amount of the crypto tokens you want to sell.
4. Review and confirm the details.

Once you've confirmed the details, your local currency wallet will be instantly funded.
You can withdraw the money in your local currency wallet to your bank account or in
exchange for cash at any time.

Sell Cryptocurrency Now

How to receive cryptocurrency into your Yellow

Card wallet
Once you create a Yellow Card account, a wallet is auto-generated for each
supported cryptocurrency. You can receive cryptocurrency into these wallets when
other Yellow Card users send you tokens or from external wallets.

To receive cryptocurrency into your Yellow Card wallet, follow the following steps.

1. Log in to your account

 2. From your dashboard select the cryptocurrency you want to receive, or go
to "Wallets" and scroll to the cryptocurrency you want to receive.
3. Tap the "Receive" button. A screen like the one below showing your wallet
address will come up. Copy the wallet address and send to the person
sending you the crypto tokens. You can also scan the QR code directly
from the sending wallet.

Once the cryptocurrency has been sent and confirmed, it will reflect in your wallet.

Note: Make sure to only send the right crypto token to an address so as not to lose
your cryptocurrency permanently.

How to send cryptocurrency from your Yellow

Card wallet
Sending cryptocurrency from your Yellow Card is easy; simply follow these steps:

1. Log in to your Yellow Card account

2. From your dashboard select the cryptocurrency you want to send, or go to
"Wallets" and scroll to the cryptocurrency you want to send
3. Select the destination you want to send the crypto tokens to. You can send
to another Yellow Card user by using the "phone number" or "email
address" options. You can also use the "wallet address" option to send to
another Yellow Card user or an external wallet.
4. Input the preferred destination - wallet address of the receiver, phone
number, or email address.
5. Enter the amount of cryptocurrency you want to send and confirm the
details.
Note: If sending Bitcoin to an external wallet, you can set Priority Level. Miner's fee
varies by Priority and it determines how long it takes for your transaction to be
confirmed and added to a block.

LESSON 5

HOW TO DEPOSIT MONEY ON YELLOW CARD

https://help.yellowcard.io/article/201-how-do-i-deposit

How do I deposit money?

Yellow Card provides you with two main ways to deposit funds into your account. The first is
through Fiat Money and the second is through Cryptocurrencies. In this post, we will explain
how to fund your Yellow Card account in both ways no matter which country you are in.

How to Deposit Fiat Money on Yellow Card

You can deposit funds on your Yellow Card account with the 10 fiat currencies supported by
Yellow Card, and through multiple payment methods.

The 10 fiat currencies are the Nigerian Naira, Kenyan Shilling, CFA Franc, Tanzanian
Shilling, South African Rand, Botswana Pula, Ugandan Shilling, Zambian Kwacha, Ghana
Cedi, and the Rwandan Franc.

On the Web App

1. Log in to your Yellow Card Account

2. On the homepage Click on “Deposit”

3. Depending on your location there will be various Payment Methods available to you.
Select the one you’re most comfortable with.

4. Enter the required details and follow the instructions.

How to Deposit Cryptocurrency on Yellow Card

1. Log in to your Yellow Card Account

2. On the homepage, Scroll downwards to “Your currencies”

3. Click on the currency you wish to Deposit.

4. Under “Wallet Balances” select “Receive”

5. Click on the Copy Icon or Scan in order to get your Cryptocurrency Address.

Note: Use only this address for that specific Cryptocurrency and no other. Sending any
other digital asset will result in permanent loss which Yellow Card is not liable for.

6. You should be able to see your incoming cryptocurrency under the “Transaction History”
of that currency.

On the Mobile App

1. Log in to your Yellow Card Account

2. On the homepage Click on “Deposit”

3. Depending on your location there will be various Payment Methods available to you.
Select the one you’re most comfortable with.

4. Enter the required details and follow the instructions.

How to Deposit Cryptocurrency on Yellow Card

1. Log in to your Yellow Card Account

2. On the homepage, Scroll downwards to “Your currencies”

3. Click on the currency you wish to Deposit.

4. Under “Wallet Balances” select “Receive”

5. Click on the Copy Icon or Scan in order to get your Cryptocurrency Address.

Note: Use only this address for that specific Cryptocurrency and no other. Sending any
other digital asset will result in permanent loss which Yellow Card is not liable for.

6. You should be able to see your incoming cryptocurrency under the “Transaction History”
of that currency.

LESSON 6

HOW TO BUY CRYPTOCURRENCY ON YELLOW CARD

https://help.yellowcard.io/article/184-how-do-i-buy-cryptocurrencies

1. Tap the cryptocurrency you want to buy.

2. Tap the Trade at the bottom
3. Select Buy
4. Enter the amount you’d like to buy in crypto, dollars or your local
currency.
5. Tap Continue to review the details of your purchase.
6. If the details are correct, tap Confirm to complete your purchase.

Your cryptocurrency balance will be instantly funded with the amount of

crypto you just bought.

Using web app

Once your account has been funded, you can now buy your favorite
Cryptocurrency instantly. To buy cryptocurrency, follow these simple steps:

1. Log in to your Yellow Card account and go to "Wallet".

2. Choose a cryptocurrency and select "Buy"
3. Enter the amount of cryptocurrency you want to buy and confirm
the details.

LESSON 7
HOW TO COMPLETE KYC ON YELLOW CARD
https://help.yellowcard.io/article/303-how-do-i-complete-my-yellow-card-kyc-step-by-
step
Tier 1 Verification

Your very first verification will be your email verification. This is required to
start using your Yellow Card account and gain access to Tier 1.

Our Tiers are designed to provide every user with both daily and lifetime
trading limits. Tiers currently range from 1 to 3 for individuals and a 4th for
businesses. Each Tier upgrade is based on a unique set of requirements
per country that must be met in order to be approved.

Please note that it may take several business days to complete your
verification due to the large number of requests we receive.
Tier 2 Verification

To get your verification for Tier 2 approved first begin by logging into your
Yellow Card account.

On the homepage, you can simply click on the “Do a lot more by
increasing your limits” link or simply click on the drop-down arrow beside
your name on the top right corner of the web page.

Among the drop-down options, select “Settings”