In this guide on cryptocurrencies, you will learn:
Before looking at the different ways to profit from this asset class, we first need to understand the basics of how blockchain technology and cryptocurrencies work.
Will these be the future of our economy?
What are the different ways which data (transactions) gets stored and verified on the blockchain? And what are the pros and cons of each method?
If you are new to trading, you can check out our 9-hour live online workshop, where we cover FIRE strategies, portfolio strategies for long-term investing, technical analysis and chart reading, how to create a trading plan, and hands-on practice to find trading opportunities.
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What are the different types of cryptocurrency coins and tokens, and what are the main functions of each one of them?
Here are some of the most popular and “blue chip” cryptocurrency coins, based on market capitalization:
To invest safely in your cryptocurrency assets, you will need to find a reliable broker to convert your fiat currency into digital currency, and then find a secure way to store those assets offline.
Besides buying cryptocurrencies directly, there are also many ways to gain indirect exposure to this asset class, such as by buying blockchain or crypto-related stocks, ETFs, trusts, futures, etc.
As blockchain technology evolves, we will see more and more new applications for cryptocurrencies in our economy.
Identifying these opportunities and getting in early on such trends can be extremely profitable.
Conclusion
I hope you have enjoyed this guide on blockchain and cryptocurrencies.
Now I’ll like to hear from you: what is your key take-away from this trading guide?
Which is your favourite cryptocurrency coin to invest in?
Do you have any difficulty understanding how the blockchain technology works?
Do you think these technologies will drive our economy in the future?
Let me know by leaving a quick comment below right now.
All this new trading products are very alien to me and a bit daunting to be honest.
The only product that I traded is only BTCUSD and ETHUSD.
Not too sure about NFTs and tokens…
I have never seen you or anyone trade NFTs in this trading guide. Have anyone actually bought and sold a NFT for a profit?
If you have, how many times have you done it and how are your profits compared to trading crypto?
Should I be viewing NFTs as a long-term investment rather than tradable assets?
Well, I love to share that you have to understand what art is about, understanding what makes a NFT project standout. You can definitely profit from trading NFTs without being part of the mint but you really have to be attentive.
In my experiences, I think the best way to profit from NFTs is to go for “branded” like Cryptopunks, Polypunks, Solpunks etc and to get them at mint price (when they are first launched).
When Metaverse was release, the lowest I have seen is 30 times of the minting price, while the highest I’ve seen is 200,000 times!
It is really difficult to dabble in NFT. You need to be lucky, and your risk is not finding a buyer, and on top of that, high gas fees to transact NFTs.
I bought $60 worth of bitcoins 5 years ago without knowing what I am getting myself into.
It slipped my mind completely that I bought it back in the day.
A quick google search says my mediocre investment is actually worth $12,000 now!
Just wondering whether I should sell it or sit on it for another 5 years?
If you’re really super rich, then do nothing, and buy more.
If you don’t need the money, but also can’t afford more, then sit on it.
If you need some cash, then you can sell a bit (up to half but no more), any more than that and you will be kicking yourself IF it went up in price.
You haven’t explicitly said if you still have access to it. And PLEASE… consider buying a hardware wallet to protect your coins.
It really boils down to your personal situation. Personally, I would keep it as I don’t need liquid cash at the moment.
The fact that you’re asking indicates that you aren’t in desperate need of the money. I would take some time to read as much about the topic as possible then make a decision on how you think it’s going to perform in the future.
Keep on HODLIN.
Why do you sell early IF you don’t need the money?
I have just been buying $100 a week of BTC on one of the popular apps for a year now, dollar cost averaging. I have about 0.25 BTC and some of you here might point out that I should diversify but why should I when I can make more compared to other asset classes?
I’m a 40 year old lecturer who makes decent money and I feel like crypto is the only opportunity to get ahead in this rat race.
I’m so jealous of your achievements. I only have 0.1 BTC but am using my disposable income for beer at the same time. =
Good luck to you and hope to see you at the top!
I think it’s real smart that you’ve dedicated to investing $100 weekly to buy BTC. It’s the perfect amount where you won’t miss it.
No point asking what to do next, since you’ve stated that this is most you’ve ever had and you are dedicated to it. You’re doing something right.
Keep it up!
Slow and steady wins the race.
Step 1: You don’t give specifics about how much crypto you own to anybody.
Step 2: Make sure you’re keeping the seed phrase safe, written down.
Step 3: Ledger wallet.
Step 4: Live your life. Plan retirement. Figure out how to live on the least amount of money.
Depends on your financial objectives. If you need the money for some pre-planned expense — you could DCA out some amount. If you plan on long term wealth creation, continue to DCA, as there is no golden rule what to do next. It completely depends on your objectives. Most importantly, you are doing something to change your life.
I’ve heard a lot about NFTs lately and how they’re worth millions. NFT stands for non-fungible token, which means it’s a unique digital asset that can’t be exchanged for something else. They’re often used for art, music, and other creative works. Because they’re one-of-a-kind, they can be worth a lot of money to collectors. I will like to recommend OpenSea as it’s one of the most popular marketplaces for NFTs. It’s really easy to use and has a huge selection of items to choose from. I’ve used it a few times myself and had a great experience.
Does anyone think that the idea of the Metaverse will fail?
In my opinion, virtual worlds do not appeal to me. Some people are referring it to the “new reality” and the “next internet” but I just see it as an overpriced and over-rated VR game that nobody will pay for.
The amount of money that will have to come out of this will have to be insane. With the amount of money that goes into this, they would end up having to resort to selling high priced gears and equipment used for them to function in the Metaverse. It will not surprised me in anyway IF a player needs to have a certain pool of Crypto to start.
In addition, I can see a hard sell/dump in the cryptos related to Metaverse as the majority have been going up with hype, and I feel the Metaverse will take a longer process than the average investor thinks, which will possibly result in these assets being sold.
I think it’s just a grand ploy to save Facebook since it is going to phrase out. By claiming that he wants to be next big thing, he is putting all in and hope it works!
I’ve actually been using DeFi for a few months now and I think it’s definitely the future of finance. It offers so many advantages over traditional banking, like lower fees and more control over your money. Plus, it’s really user-friendly once you get the hang of it.
I have noticed that interest in NFT is dropping sharply based on Statisca. This indicates that the overall momentum of the NFT market is weakening, and supply is catching up to dropping demand. We’ll see fewer $300k Monkeys JPEGs, and things will begin to slow down now that it’s becoming more difficult to flip the NFTs for a bigger sucker to buy in.
It is baffling to me.
How does a lower search count on the word NFT, correlate to dropping demand?
It is puzzling to me that the crypto community doesn’t understand the value of NFTs. This is great news for collectors and investors of NFTs. Most people just think they are jpegs and do not understand the thousands of utility projects that are doing popular. There is going to be a drop off nevertheless. Most influencers that have tried NFTs have been called out for scamming and with increasing scam awareness, only good projects are doing well.
End of the day, NFTs are also highly correlated to crpyto? Why would this be bad news for us? Its your perspective and is subjective to each individual if they choose to dislike it. People can do what they want with their money, and don’t buy NFTs if you think it’s all a scam.
NFT sales ‘have declined 92% since their peak’ and THE MARKET AND INTEREST AROUND NONFUNGIBLE TOKENS LOOKS TO HAVE FLATLINED.
What do you guys think?
I am not surprised AT ALL.
Who in the right mind will want to purchase a picture at a higher price than the previous guy?
To me, it all feels like a Ponzi scheme. The last person to get it is the sucker.
Everyone is just looking to make it big with the next thing! You can expect to see these crypto trends to come and go off and on over time. Everybody is looking for the next bitcoin.
Will you be the first to risk and make it OR wait to be at the end of the trend?
An NFT of the first tweet from Twitter co-founder Jack Dorsey, which was purchased in March 2021 for $2.9 million by Sina Estavi, the CEO of Malaysia-based blockchain company Bridge Oracle, was put up for auction earlier this year and didn’t receive any bids above $14,000.
Now you tell me? LOL
What do you think of the latest USDT depeg and Luna crash?
Luna took a hit to restabilize the PEG as it was designed for. The priority of TERRA is to protect the peg at all costs even if it takes value from Luna.
USDT is an algorithmic stablecoin and it isn’t like fully backed stablecoins (e.g. USDC, BUSD and EEUR), which can be redeemed 1:1 with their underlying assets.
I lost at least 80% of my portfolio in USDT….
It sucks… I tried to diversify and USDT is supposed to be stable… feels like the BTC crash years ago.
I diversify my money into 15 different coins.
I can get into whatever I can. I might be the stupidest person here, but hey, I’m making money even in a down market.
It shocks me that by losing so much in Luna/USDT, its almost my entire portfolio. I could never risk all my money on 2 coins.
Well it looks like it has recovered somewhat… although not as high as it used to be.
The measure of a good stable coin is not about its ability to retain its peg in the short term, but how it is economically structured such that it can retain the peg in adverse events.
Invest in stable coins that proved themselves on these events such as DAI and USDC. In my opinion, we don’t really need so many different ones which are mostly owned by VCs, which are highly centralized in their consensus and operate on fractional reserves.
I actually had a lot of difficulty understanding how it works at first, but after doing some research and watching some videos, I have a much better understanding now. Have you tried looking up some explanations online?
I’ve read a few articles and watched some videos too, but I still have trouble wrapping my head around some of the technical details. It seems like a very complex technology.
I agree, blockchain can be quite complex, especially when it comes to things like consensus algorithms and smart contracts. But I think it’s important to understand these details if you want to truly appreciate the potential of blockchain.
I think the biggest challenge for me was understanding how the decentralized nature of blockchain makes it so secure. It took me a while to understand why it’s so difficult to hack.
I had a similar experience, but what helped me was learning about the concept of “mining” and how it contributes to the security of the blockchain. It’s fascinating stuff. One thing that still confuses me is how transactions are validated and added to the blockchain. Can someone explain that process to me?
I can take a stab at it. Basically, each transaction needs to be verified by multiple nodes in the network, and once it’s verified, it’s added to a block. Once that block is added to the chain, it’s very difficult (if not impossible) to change it.
That makes sense, but how do the nodes reach a consensus about which transactions to add to the blockchain?
They use a consensus algorithm, which is essentially a set of rules that all the nodes in the network follow to agree on which transactions are valid and should be added to the blockchain. It’s a pretty complex process, but it’s what makes blockchain so secure and decentralized.
I believe that these technologies will definitely drive our economy in the future. With the increasing digitalization and automation of processes, blockchain, AI, and IoT are becoming integral parts of our daily lives. As more and more companies and organizations are adopting these technologies, it’s clear that they offer numerous benefits, such as increased efficiency and transparency.
The world is constantly evolving, and technology is a driving force behind it. Blockchain, AI, and IoT have shown tremendous potential to improve the way we live and work, and we’re only scratching the surface of their capabilities. As these technologies become more mainstream and widely adopted, I believe they will play a significant role in shaping our economy in the future.
While I do think that blockchain, AI, and IoT have the potential to drive our economy, I think it’s important to consider the potential downsides as well. For example, some people worry that increased automation could lead to job losses and economic inequality. Additionally, there are concerns around data privacy and security when it comes to these technologies.
I think that the potential of blockchain, AI, and IoT to drive our economy depends on a variety of factors. One of the most important factors is education. As more people learn about these technologies and how they can be used, adoption will increase. Additionally, regulation and policy will also play a significant role in shaping the future of these technologies.
Education and awareness will be critical in driving adoption of these technologies. It will be important for businesses and organizations to invest in training and education programs to help their employees understand how to use these technologies effectively.
While the potential benefits of these technologies are undeniable, it’s important to consider the potential risks and challenges as well. It will be crucial for policymakers and business leaders to work together to ensure that these technologies are used responsibly and ethically.
I think that blockchain, AI, and IoT will drive our economy in the future, but it will likely take some time for them to reach their full potential. Adoption of new technologies can be slow, and there are always hurdles to overcome. However, I believe that as more people see the benefits of these technologies, adoption will increase, and we’ll see significant changes in our economy.
I agree with the previous post. The world is constantly evolving, and technology is a driving force behind it. Blockchain and AI have shown tremendous potential to improve the way we live and work, and we’re only scratching the surface of their capabilities. As these technologies become more mainstream and widely adopted, I believe they will play a significant role in shaping our economy in the future.
I think it’s important to consider the potential downsides as well. For example, some people worry that increased automation could lead to job losses and economic inequality. Additionally, there are concerns around data privacy and security when it comes to these technologies.
I personally love investing in Ethereum (ETH). It has a strong community and a solid development team. Plus, with the growing popularity of decentralized finance (DeFi) and non-fungible tokens (NFTs), I think the demand for ETH will only continue to rise.
I prefer investing in Bitcoin (BTC) as it is the most established and recognized cryptocurrency. Its market cap is much larger than any other cryptocurrency, and it has been around the longest. I also like the fact that its limited supply means it is deflationary.
My favorite cryptocurrency to invest in is Cardano (ADA). It has a unique approach to blockchain technology and is aiming to solve many of the problems that other cryptocurrencies face, such as scalability and sustainability. I believe it has a lot of potential for growth in the future.
For me, I prefer investing in Binance Coin (BNB) as it has a wide range of use cases, including discounts on trading fees, participation in launchpads, and payment for goods and services. It also has a strong community and a reputable exchange backing it.
I will invest in Polkadot (DOT). Its technology allows for interoperability between different blockchains, which could be a game-changer in the industry. I believe it has the potential to be a top player in the future.
Chainlink (LINK) is what I will choose as it provides secure and reliable data feeds to smart contracts. It has been gaining popularity in the DeFi space and has partnerships with major companies such as Google and Oracle.
Of course its Dogecoin (DOGE) due to its strong community and viral popularity! While it started as a meme coin, it has been gaining more and more mainstream acceptance, and I believe it has the potential for long-term growth.
My favorite cryptocurrency to invest in is Litecoin (LTC). It is often referred to as the “silver to Bitcoin’s gold” and has been around for a long time. It has a strong reputation and a solid development team, making it a stable investment option.
I like investing in Stellar Lumens (XLM) because of its focus on remittances and cross-border payments. Its technology allows for fast and low-cost transactions, which could be a game-changer in the world of finance.
You guys should look in VeChain (VET). It has a unique focus on supply chain management and has partnerships with major companies such as Walmart and BMW. I believe it has a lot of potential for growth in the future as more and more companies adopt blockchain technology.
I found the information about indirect ways to invest in cryptocurrencies to be very interesting. It’s good to know that there are other ways to gain exposure to this asset class besides just buying coins directly.
Yes, I agree. I think buying blockchain-related stocks or ETFs could be a good option for those who want to invest in cryptocurrencies but are not comfortable with the volatility of buying coins directly.
I also found the information on the Metaverse to be fascinating. It seems like this could be a major growth area in the future, and I’m curious to see how it develops.
I think the information on the best blockchain ETFs and Bitcoin ETF options in 2021 is very helpful. It’s always good to have a list of top investment options to refer to when making investment decisions.
I think it’s important to consider a variety of investment options when it comes to cryptocurrencies. The market can be unpredictable, so it’s good to have a diversified portfolio to minimize risk.
After reading about the new applications of blockchain, I am amazed at how much potential there is for the technology. I think the key takeaway is that by keeping up with emerging trends and identifying opportunities early on, it is possible to make significant profits.
The DeFi trend is one that has caught my attention, and I believe it could revolutionize the way we think about finance. The fact that it is decentralized and accessible to everyone is a huge plus.
NFTs are another area of interest for me. The fact that people are willing to pay millions for unique digital assets is mind-blowing. It’s something that I never would have thought possible a few years ago.
I’ve been exploring yield farming lately, and it seems like a promising way to earn passive income with your cryptocurrency. The Ultimate Guide to Yield Farming was an excellent resource to learn more about the process.
One thing that I found helpful was reading about the different ways to invest in crypto indirectly. This can provide exposure to the asset class without some of the risks associated with buying cryptocurrencies directly.
That’s a great point. It’s also essential to stay up-to-date with news and developments in the space. Things move quickly, and it’s important to be aware of any changes that could impact your investments.
Yes, diversification is definitely key when it comes to investing in cryptocurrencies. It’s good to have a mix of direct and indirect investments to balance risk and potential returns.
Overall, I think the key takeaway is that blockchain technology and its applications are constantly evolving. By staying informed and taking a strategic approach, there are opportunities to profit from this exciting and innovative space.
After reading this guide on types of cryptocurrencies, my key take-away is the importance of understanding the different types and their functions. It’s not enough to simply invest in a popular coin without understanding its purpose and potential growth.
One of my key takeaways from this guide is the potential of altcoins as an investment. While they may be riskier than more established coins, they have the potential for greater returns if chosen wisely.
I found the information on stablecoins to be particularly interesting. It’s reassuring to know that there are cryptocurrencies that are pegged to more stable assets, such as the US dollar, to help reduce volatility in the market.
Another takeaway for me was the importance of keeping up with the market capitalization and live prices of different coins. This can help in making informed decisions about when to buy and sell.
What stood out to me in this guide was the explanation of Initial Coin Offerings (ICOs) and how they function as a type of crowdfunding for new cryptocurrencies. It’s fascinating to see how this process has evolved over time.
One thing I learned from this guide is that the primary function of each of the top 10 cryptocurrency coins varies widely. It’s important to research each coin’s function before investing to ensure it aligns with your goals.
I was surprised to learn that some cryptocurrencies have additional features beyond just being a currency. Decentralized Autonomous Organizations (DAOs) and Decentralized Apps (dApps) are intriguing and could have big implications for the future.
Cryptocurrencies are a complex and rapidly evolving asset class. It’s important to stay informed and up-to-date on developments in the industry to make informed decisions about investing.
My key take-away from this information is the importance of understanding how transactions get verified on the blockchain. It’s interesting to learn about the different methods like Proof of Work and Proof of Stake and how they have their own advantages and disadvantages.
Personally, I find the concept of Proof of Stake intriguing, and I think it has the potential to be more eco-friendly compared to Proof of Work.
I think it’s important to understand the difference between Proof of Work and Proof of Stake, especially if you’re planning to invest in a cryptocurrency that uses either method for transaction verification. Knowing how transactions are verified can help you make better investment decisions.
Another important thing to consider is the amount of energy consumption associated with Proof of Work. It’s good to see more and more cryptocurrencies shifting towards Proof of Stake to reduce their carbon footprint.
I find Bitcoin mining to be fascinating, but it’s definitely not an easy process. It requires a lot of computational power and electricity, which can be costly. It’s interesting to learn about how miners get rewarded for their efforts.
I’ve heard about blockchain forks, but I’m not entirely sure what they are. Can anyone explain how they work and why they happen?
A blockchain fork occurs when there is a change in the rules governing a blockchain. This can happen due to a software update or a disagreement between members of the community. When this happens, the blockchain splits into two separate chains with different rules and history.
In some cases, a fork can lead to the creation of a new cryptocurrency. This happened when Bitcoin Cash was created as a result of a fork in the Bitcoin blockchain.
One of the potential risks associated with blockchain forks is the possibility of a 51% attack. This is when a single entity controls 51% or more of the computing power on the network and can manipulate transactions for their own gain.
Overall, understanding how transactions get verified on the blockchain and the different methods used is crucial for anyone interested in cryptocurrencies. It’s also important to be aware of the potential risks associated with blockchain forks and 51% attacks.
dApps are extremely useful and practical because they eliminate the need for intermediaries and provide users with greater control over their data and assets. dApps have a lot of potential to disrupt traditional centralized applications and provide users with more freedom and security.
However, dApps are still relatively new and lack the user base and infrastructure of centralized apps. This can make it challenging to find practical use cases for them in everyday life.
One practical use case for dApps that I can think of is in the gaming industry. With dApps, gamers can own their virtual assets and trade them without relying on centralized platforms that charge high fees.
Another potential use case for dApps is in the supply chain industry. By using blockchain technology, dApps can provide greater transparency and traceability in the movement of goods, reducing fraud and errors.
I think dApps could also be useful for voting systems. Since they are decentralized and secure, dApps could help to eliminate voter fraud and ensure fair and transparent elections.
One challenge with dApps is that they can be slower and less efficient than centralized apps. This is something that needs to be addressed for dApps to become more practical for everyday use.
Yes, scalability is a challenge for dApps, but there are solutions being developed, such as sharding and layer-two protocols, that can help to increase the speed and efficiency of these decentralized applications.