A source for information about the Crypto Currencies -
A source for information about the Crypto Currencies -
Ready? Lets get to it...
First A Bit Of Background
I don't want to overload you with a whole lot of techno-
A Super Brief History
Bitcoin came about from a whitepaper released in 2008: Bitcoin, A Peer-
The first Bitcoin was mined in January 2009 and the first transaction was conducted soon after when the founders exchanged some funds directly. Later that year the New Liberty Standard established the value of Bitcoin at 1309.03 bitcoins for 1 dollar.
The first real-
Today that pizza is valued at almost 2 million pounds and the
transaction is regarded as a major milestone in Bitcoin history.
For the next few years there was a rollercoaster ride of good and bad news.
One the bad side there was hacking, theft, illicit users, money laundering... which all brought notoriety and knocked the price down.
At the same time, growing mainstream acceptance in the business community and constantly improving security measures pushed it back up again.
Despite the troubles, in November 2013 Bitcoin topped US$1000 for the first time, before dropping back as low as $200 as more dramas emerged.
One of the 'biggest breaks' came when the Silk Road online drug marketplace was taken down... which clearly demonstrated that Bitcoin wasn't the anonymous haven for illegal activities that many critics had claimed.
By 2015 things had settled down and Bitcoin had finally achieved mainstream acceptance. That was confirmed when the New York Stock Exchange made a substantial investment in the Coinbase IPO.
By 2016 it was estimated that worldwide over 180,000 businesses were accepting Bitcoin payments and over Bitcoin 770 ATMs were available.
And in March 2017, the price of a Bitcoin crossed the price of an ounce of gold for the first time ever.
Bitcoin had most definitely arrived...
How It All Works...
Bitcoin is a peer-
The idea of a digital currency had been around for some time, but it wasn't until the problem of 'double spending' was addressed that it became a reality.
Since anything digital can be copied over and over again, the challenge was creating a digital payment system that make sure that nobody spends the same money more than once.
Offline it's handled by the fact paper money is physically transferred from buyer to seller.
Online it's been handled by a central authority... ie a bank... recording and verifying all transactions... removing the payment from the buyer's account and adding it to the seller's account.
What makes Bitcoin special is that it uses a massive peer-
Once verified though, your payments are non-
What is a Blockchain?
The blockchain is simply a record of all Bitcoin transactions that have ever taken place. It is similar to a ledger that a bank might keep to record all transactions of their customers and it is key to preventing 'double spending'.
Instead of the central authority... the bank... maintaining the ledger, with the blockchain, a copy of the ledger file is shared between thousands of participants globally who choose to become involved as 'Miners'.
New bitcoin transactions are added in the blockchain by a consensus of a majority of the Miners... the verification process. Once a transaction is entered in the blockchain, it can never be erased or modified.
More importantly, it's virtually impossible to hack or cheat the system, because that would require the attacker to attempt to modify not just the 'block' he wants to alter, but also every other block that follows to the present time. And he'd need to do it all before the next block was added after that.
The good news, you don't need to do anything... or even know too much about all this... to use Bitcoin. This massive community is always working quietly in the background, verifying transactions and creating (a limited number of) new Bitcoins.
Where do Bitcoins come from?
The miners described above put their computers to work verifying transactions in the peer-
The difficulty involved in verifying a transaction is set to increase over time, so the release is controlled and the value of Bitcoin is supported. As miners get more efficient by using more powerful software/hardware, the complexity also increases, so the release rate remains relatively stable.
The system was originally set up to gradually release a total of 21,000,000 Bitcoin. Once that point is reached, the digital 'plates' will self destruct and no more can ever be created.
At time of writing there are just under 16.5 million in circulation, so there is still a lot of Bitcoin available to the miners.
Who controls Bitcoin?
A Bitcoin transaction is simply a transfer of value between two Bitcoin wallets that has been included in the Blockchain. So the only people involved are the two exchanging funds, and the Miners working anonymously in the background to verify the blockchain transaction.
A Wallet is simply a digital storage space that holds your Bitcoin. They are many variations, mostly differing by security measures and convenience, but essentially they
all store your personal private key, or seed, which is used to sign transactions.
This private key provides a mathematical proof that the Bitcoin you send has in fact come from you, the owner of the wallet. That proof is verified each time by the Miners who confirm the transaction.
Various government bodies and banking organisations have attempted to regulate the use Bitcoin, but the system itself is byond their reach. The peer to peer structure, plus various checks and measures built into the system itself, makes it extremely difficult for anyone to manipulate Bitcoin.
The underlying software is totally open source, so anyone can make modifications and improvements. Changes to the software can be proposed by any developer with an interest.
Those changes are then voted on by the miners... if they think it's good for Bitcoin they start using the new version of the software. If the majority start using it, it's the new standard and the rest of the miners quickly come around.
So is Bitcoin Safe?
Bitcoin had it's ups and downs in the early days and definitely got a lot of bad press after some major thefts and the odd embezzlement.
The fact is however, these were all due to vulnerabilities in the supporting software and services... wallets and coin exchanges mainly... and/or a few unscrupulous people ripping off their own customers.
To date there has never been a successful attack on the actual Bitcoin client.
So in a lot of ways it's quite similar to fiat money... when a bank is robbed, it's not the
money that's at fault but rather the security measures at the bank.
As a new industry though... and one where there's a lot of big claims being made every day... it is vulnerable to all kinds of scams and shysters. And the fact so many consumers are here looking for a quick score doesn't help any.
So the number one rule here is: if it sounds too good to be true, it probably is!
Don't get me wrong... there are some excellent opportunities out there, and we share a few of the very best later on... but in the mean time, be alert and realistic, and make sure you do your own due diligence before making any purchase or investment.
How to get started with Bitcoin
The best way to learn about Bitcoin is to simply get some and spend it!
You'll find a step-
Most exchanges and web-
By the time you make a few small purchases though you'll have the idea... enter an amount, enter a wallet id to send it to and submit... job done!
We talk some more about Wallets, security and managing your Bitcoin in our Crypto Wealth Strategies eBook, but for now, a web based wallet with a recommended provider is safe enough to test it out.
Be sure to record all the information you get as you set up account and wallets... especially passwords, seed phrases, private keys etc … in a plain text file, ready for copy and paste as required. (If other people have access to your computer, install a lockbox-
You should also print a copy of that regularly for offline storage as well. Remember this is all totally private... if you lose your wallet keys, the wallet provider cannot help you... your Bitcoin are gone for good!
What About All The Other Cryptos?
Once the blockchain was created to resolve the double spending problem, the door was wide open for anyone to create their own currency.
And these days there are literally hundreds of other crypto currencies using the blockchain model.
Several have reached a critical mass already and have the support of enough users to make them a viable currency. Litecoin, Dogecoin, Monero and Ethereum are probably the best known and their valuations seem to be following a similar trajectory to that of Bitcoin.
Much of the appeal is due the fact that extra data can be attached to any transaction. So developers are coming up with all kinds of ways to utilize that feature... along with the peer-
Some are passing complete contracts, licenses or user agreements with the transaction details, creating an entire legal paper-
Ethereum is using the blockchain and the network to host entire applications, so they can run without actually being physically installed on any single machine or server.
They too have had some issues that have wreaked havoc on their price a couple of times, but like Bitcoin, they came through it stronger and more secure, and right now they are looking like they're here to stay as well.
The two things to remember in all this are...
Any one of these Altcoins could be the next Bitcoin...
But most won't be!
So while it might be tempting to run out and buy a chunk of every new currency you can find, it isn't a viable investment strategy.
While there is enormous potential in some of these Altcoins, you do need a strategy to select those with a real chance of reaching critical mass.
(There's a few things to look for that we cover in our Crypto Wealth Strategies ebook if you're interested in this kind of speculation).
A Few Terms You'll Need To Know...
Just before we move on, there are a few terms you'll be seeing a lot of... so just to be safe, here's a quick checklist...
Fiat Money… normal paper money as we know it. There's a lot more to it if you want to go looking... and it's kind of interesting in a historical / geopolitics kind of way... but that's enough for now.
Altcoin... a generic term for all Crypto Currencies, including Bitcoin.
Bitcoin… the original Crypto Currency. It tends to get used as a generic name a lot, though I'l ltry to avoid it.
Blockchain... the encrypted string that records all Bitcoin transactions. Each new transaction is added to the string.
Miners... network users who donate their time and computing power to help with the encryption and verification of transactions.
Exchanges... businesses that buy and sell crypto currencies. Originally they connected buyers with sellers, but most these days seem to let you deal with them directly for faster turnaround.
Brokers... in this sense, the Forex brokers who allow you to buy and sell currency pairs, including an increasing number of crypto currency crosses. More on the specifics in the Trading section...
Satoshis... named after the author of the original Bitcoin whitepaper, this is a unit of Bitcoin... 0.00000001 of a Bitcoin! (Today that's USD $0.0000277971)
Making Money With Bitcoin
There is a real 'gold rush' mentality to a lot of what you'll read and hear about crypto currencies. Some of it stems from Mining process, which has long been compared to digging for gold...
But mostly it comes from the sheer volume of people who have heard the success stories and are here looking to strike it rich and make their fortune.
Unfortunately, there's plenty of shysters here who'll quickly fleece those people of their money and send them back to their day jobs.
The ones who do make it work will take a much more methodical approach: researching their options, investing their time effort and money wisely, and carefully building up a strong and diversified portfolio of crypto currency investments.
If you take that sort of measured approach though, right now you will find the returns can be particularly good.
So you can get started here with considerably less money that you would need in a lot of other investment categories.
Of course high returns are usually a pretty good indication of high risk, so you should proceed with caution. Do your own due diligence on everything and never invest money you can't afford to lose!
So with all that in mind, lets look at some areas where people like you and me are making real money in cryptos, right now...
Buy and Hold Crypto Currency
If you've got funds to invest, the easiest option is just to buy and hold.
Grab yourself a hardware wallet (the most secure option) and buy some currency.
Get some Bitcoins plus a few of the stronger Altcoins and plan to sit on them for a few years or more.
There will definitely be fluctuations in the price... and some of the Altcoins may well tank... but in the long term, your investment should seriously appreciate.
You've seen the predictions by now I'm sure... one Bitcoin could be worth $10K, $30K or even $500K or more in just a few years time.
So at the lower end of the prediction scale, 4 Bitcoin... about $10K now... could easily be worth ten times that in a few short years.
And who knows where it might go after that.
As for the Altcoins... most of these are still very cheap and even the more established
players such as Ethereum and Litecoin look quite affordable compared to Bitcoin.
So if you have the funds available to speculate, it's a good time to be selectively buying up a mix of these to hold on to as well.
Margin Buying Options
Most Forex brokers now let you trade Altcoin using a margin account. This basically lets you control a volume of Altcoin without putting up the full amount to buy it outright.
This is a good way to take advantage of the price moves with limited resources, but a margin is a doubled-
As an example...
Your Broker might offer a 30:1 margin requirement on Bitcoin.
So with the price at $2700 per coin, you could 'buy 10 BTC/USD contracts for 1/30th of the price... ie 10 x $2700 / 30 = $900.
If the price then goes up to say $3,000, your investment is now worth $30,000... you close out the trade for a $3,000 profit.
Of course the impact of margin cuts both ways...
If the price drops to $2000 first, your investment is now only worth $20,000... a loss of $7,000.
If you don't have sufficient funds in your account to cover the paper
loss, the broker closes out the trade for you (known as a margin call)
and the loss becomes very real, very fast.
So while there are real benefits to margin trading, it carries very real risk and shouldn't be attempted without some serious training and preparation. And given how volatile crypto currency prices can be, you should ensure you have sufficient reserves available to ride out any big fluctuations.
You should also be aware that at this time, only a handful of crypto currencies can be traded this way. Quite a few brokers are now supporting Bitcoin, and a smaller number also offer Litecoin and Ethereum, but you won't find many others, so it's difficult to to put together a diversified portfolio this way.
One option would be to simply take out part of your Bitcoin profits and buy some of the other Altcoins to hold on to. That would be you basic strategy anyway...
1. Buy lows, sell highs and get out.
2. Wait for a retrace and then buy again.
If you take part of your profit each time and buy a different Altcoins to hold, you'd soon have a very diversified crypto portfolio.
There are ways to do this kind of trading in relative safety... even while you learn... but they're a bit beyond the scope of this ebook. We cover two of these options in more detail in our Crypto Wealth Strategies ebook if you're interested.
Bitcoin / Crypto Currency Mining
The Mining process was designed to control the creation/release of new Bitcoin, so if people are mining too fast... ie. using new hardware or pooling resources etc.... it actually gets harder to do. If people then lose interest and give up, it gets a little easier.
These days it is extremely competitive so it's tough going, even for the pros. The margins are very slim and it's hard to imagine it ever getting any easier.
But the gold-
So anyone can go to Amazon and buy some pretty powerful hardware... install the open source Bitcoin mining software... and get to work.
Some people obviously make it work, but realistically the margins are always diminishing, and the more powerful your hardware, the greater your costs... mostly electricity... so it's a game for specialists.
A lot of people do a little better by joining mining pools, but even then, it's a considerable undertaking with no real guarantee on your returns.
For you an me, the best option is Cloud Mining.
Let someone else own the hardware and run software, and we purchase
a contract to use set amount of processing power on their system.
The profits are then divided up among all the users in proportion to the amount of processing power they contributed.
You pay a maintenance fee out of your profits, and depending on the contract you purchased, you can make a nice return.
While you can start cloud mining with a very small contract purchase... even under $10 on some platforms... you should be aware that below a certain level, your daily profits will barely cover your maintenance fees.
It becomes more profitable as you increase your processing power.
While a $20 contract might make you a profit on paper... the returns are tiny fractions of a cent per day... meaning it's hardly worth the effort. So you'll do better to wait until you have a little more to make a start.
There's a lot of competition in this area as well with many different companies working a lot of different approaches. I've used a dozen or more by now, and all but one of them have delivered consistent profits, though several were quite small returns even on larger contracts.
I've trimmed the list of those I use now to about four. They each offer a slightly different model, and I find it's worth running a few of them simultaneously and the individual results can can vary, and the portfolio approach tends to even out the returns.
You will find a number of free Apps that will run on your computer... or even your phone... apparently making you Bitcoin while your device is inactive. Realistically the amounts you make a minuscule... fractions of a cent per day... so simply not worth the effort.
There is one Miner I use that runs software on my computer connected to their cloud environment. It's quite unique in it's approach and offers some excellent features that we cover in our Crypto Wealth Strategies ebook.
I also review the three pure Cloud Mining services I currently use with some tips for choosing the best option for your situation and how to get started.
Just remember, your up-
A lot of people go into it thinking they're going to get their initial payment back with their profits. Needless to say they end up very disappointed.
You'll see a lot of complaining on some of the forums when they realise they might have to mine for a long time to recover their initial outlay.
If the contract becomes unprofitable... ie it no longer covers the daily maintenance fee... then the company cancels it and their investment is lost.
Most platforms do let you choose how much processing power (hashrate) you purchase, so you do need to choose your initial mining contract carefully.
Go too cheap and your returns won't cover your maintenance fees.
Go too high, and you might never recover your initial outlay.
Get it just right though, and you can generate ongoing hands-
It will take awhile to recover your outlay, but after that, it's all profit!
The final point worth mentioning is, while Bitcoin mining is very tough these days, there are hundreds of other currencies out there needing to be mined, and many of those are going to be much more profitable than Bitcoin.
In fact one of my preferred Miners offer a 'smart mining' option where it automatically applies your resources to the currency that has been most profitable in the last hour.
It's no real surprise that in the time I've been using it, I've never seen it mine Bitcoin!
Crypto Affiliate Marketing
This is where I believe the real crypto 'gold rush' is going to be for many years to come...
Businesses everywhere are eyeing the massive potential market for crypto related products and services.
They're madly developing new products and services and then desperately trying to get their own offerings out as far and as fast possible.
Every one of these companies is hoping to hit upon the next big thing.
And in an emerging market like crypto currencies, locking-
If they can get enough of the early-
So the stakes are huge, and that gives you and me you a real advantage...
These businesses will pay you extremely well for visitors and customers... eyeballs on webpages, email subscribers on lists, any kind of digital butts on seats...
So much so, almost every business in this niche offers a generous affiliate program.
Many are offering two-
What you need to realise here is, the competition is only just getting warmed up.
This industry is still in it's infancy and only just starting to get mainstream attention.
Can you imagine how many more businesses are going to be piling on in the next few years?
Can you imagine what sort of affiliate deals they are going to have to offer... to get people like you and me to sent them potential customers?
Don't get me wrong... the deals on offer are already very generous, but as the competition grows, they are going to get even better and we'll be spoiled for choice on products and services to promote.
Whether your an affiliate marketing veteran or a total newbie, I hope you'll explore this option carefully, because the potential rapid growth is as big as that for Bitcoin itself.
Again, we dig into this in our Crypto Wealth Strategies eBook, including two excellent hands-
These are particularly effective if you're new to affiliate marketing and not too sure where to start.
The other big advantage of promoting crypto businesses like this is, many of them will pay you your commissions in Bitcoin.
So you can spend it easily enough (grab a Bitcoin ATM card and go crazy!) …
But it also makes it very easy to just transfer some the coin to your Buy and Hold wallet... or reinvest your earnings in some of our other recommended instruments.
As good as this all sounds, some businesses are taking it all a step further though
With so many new businesses vying for attention... from both potential customers and potential referral marketers...it's no surprise that some would look to an MLM structure as a means to reach out a broader audience.
This is where they use an even more lucrative multiple-
MLM Investment & Referral Programs
Now I realise a lot of people have a problem with MLM (Multi Level Marketing) programs, and I get it. I don't expect to change anyone's mind, but here's how I see it...
All Ponzi Schemes are MLMs, but not all MLMs are Ponzi Schemes.
If a business' only purpose is to bring in more members/customers... and there's no real product or service being sold... so you only make money by brining in more members... then yes, it's likely a Ponzi Scheme.
But if the business has a clear and substantial purpose... ie. distributing a legitimate product or service, and paying you a commission on the profits from that distribution... then it's likely a legitimate MLM business.
There are some fine lines sometimes though, especially when a new business is looking to build a membership base to finance the development of the product or service.
For better or worse, when you look around the whole Crypto Currency niche, you'll find plenty of scams and schemes, but you'll also find some very legitimate businesses with sound MLM marketing plans.
If you take some time to research those, you will find some very attractive offers.
I've been involved with a couple and looked at dozens more since I started researching our Crypto Wealth Strategies ebook. Most were quickly rejected but I have found some gems that we review in the book...
At this stage, the best of these MLM Programs are mostly offering their own mix of Bitcoin Mining, Auto-
By pooling the resources of all the Members, these business are able to purchase some serious mining power with profits divided up among everyone, usually quite frequently... sometimes daily or even hourly.
The MLM approach also provides funding for a substantial group trading account, which can then support an autotrader... making thousands of micro trades every hour on the Bitcoin price movements. Again, profits are shared among the members.
Others use specialised software to seek out arbitrage opportunities... tiny differences between prices at different brokers that can be traded automatically, buying low and selling high. Again, making masses of tiny trades... over and over... around the clock.
We've included two of these in the Crypto Wealth Strategies ebook plus one more that's a little more speculative. It's very new and as such unproven, but it's been built around Ethereum and if that takes off, it will be an excellent vehicle for accruing that currency.
Free & Cheap Bitcoin Options
I was in two minds about even mentioning these, but in the end I decided you are going to see a lot of them as you start researching your Bitcoin options, so I maybe as well give you a quick heads up on what I've learned!
The short version here is, most of what you'll see are simply not worth the effort.
Some of them will probably look pretty enticing at first, but the cheap options are all talking in Satoshis, usually with numbers that look pretty impressive... 300 for visiting a faucet, 1000 for viewing a website,15,000 for completing a survey.
So it looks good until you do the math and realise how little you're actually getting paid.
In fact, if you've ever used any 'paid to surf' networks, as bad as the apyout were there, you were probably getting paid anywhere from 10-
Free Bitcoin Options: Forget It!
So my advice has to be, forget about the free options. Theonly exception would be if you have major time on your hands and no other option to make some cash to get started.
Even then, realistically you'll probably do better looking for the normal-
Realistically though, you'll be better off doing almost anything else... pick up some over time, cut out a luxury, sell something... do some no-
Cheap Bitcoin Options: Approach With Care...
There are a couple of low cost options we cover in our Crypto Wealth Strategies ebook that will let you get started in crypto with a relatively small bank... under $100. Accordingly the returns are not huge, but will add up over time.
These are mostly based on low cost mining or lending programs. (The latter is as close to 'interest' as you'll get with Bitcoin... since you always control/hold your own Bitcoin there's no bank to pay you for the use of them!)
If you don't have much of a bank to get started, I'd recommend you set up one or more of these as soon as funds permit, if only for to boost your mindset.
You'll get a lot of motivation simply from the fact you've actually made a start on your crypto portfolio. Plus, most people will get a lot of satisfaction from watching an investment grow 'hands-
Though I don't want to undersell the returns here. It's never going to be a major growth vehicle for you until you get a bit of a bank together, but compared to the near-
How To Launch Your Crypto Portfolio
Realistically, you will need some sort of bank to get started... or at least some disposable income you can divert to this on a regular basis.
Most of the investment options we recommend can be launched with less than $100, but for any real benefit you'll need to add to that regularly.
So for most people I firmly believe the best option is to get started with some crypto-
That way you can work on building up your bank quickly while setting up some additional recurring cashflows to fund your ongoing crypto-
Our Crypto Wealth Strategies ebook comes with a bonus Bitcoin Bank Builder strategy, which will walk you through the exact process of setting this up for rapid results and ongoing hands-
The book itself has a built-
Plus you'll see there's an optional strategy that can seriously add to your bank and your cashflow if you're prepared to do a little more work setting it all up.
It's not for everyone, but check it out and see what you think!
Bitcoin Bounty Hunter
Bitcoin is big news right now. It seems everyone has an opinion on where the price is headed. And no one can agree on just how far the industry might go.
The general consensus is the price will keep on going up and that the industry itself is only just getting warmed up. Even the pundits who called it a passing fad have had to swallow their pride and admit this new currency is here to stay.
You've seen all the headlines & predictions I'm sure...
“You can’t stop things like Bitcoin. It will be everywhere
and the world will have to readjust.”
“Bitcoin is one the most important inventions since the internet.”
“A population of bitcoin users comprising 5% of the world’s population
in 2030 will drive the price to $500,000 in 2030”
“It has been proven the best performing currency in the last 5 years, and …
has a potential to go up to a $10,000 and even a 1 million per coin.”
So even if some of the predictions fall short, it's easy to see that a small investment now could be worth a whole lot of money somewhere down the track…
And a LOT of people are coming to the same conclusion about now.
In fact, I'm guessing that's why you're here reading this?
But where do you start?
Bitcoin, altcoin, crypto currencies, blockchain, digital wallets, soft forks, hard forks, bitcoin mining, hashrates...
How do you make sense of all the techno-
Well this report will attempt to answer a few of these questions for you in the simplest terms possible.
I'll try and give you just enough information to understand where we're at right now and where it's all headed... and how you can get on board.
Because there's some great rewards out there waiting, once you know where to look.