Cryptocurrency fully explained – why cryptocurrency is better?

Cryptocurrency fully explained | why cryptocurrency is better

cryptocurrency fully explained

guys welcome to the website this is gonna be a completely free beginner’s
guide to investing in cryptocurrencies,it’s gonna be very long it’s gonna be very in-depth but it’s gonna go over
everything you need to know to start investing in the cryptocurrency market,
with the course so let’s talk about the things that we’re going to cover in this course right

 1.My background as an investor

2.Why you need to invest ASAP

3.An Introduction to Crypto

4.What is blockchain?

5. Crypto mining

6. Popular cryptocurrencies

7.How to value a crypto coin

8.Risks of investing in crypto

9.Intro to crypto wallets

10.Types of crypto wallets

11.Overview of crypto investing platforms

12.Coinbase walkthrough

13.Robinhood walkthrough

14.Gemini walkthrough

15.BlockFi walkthrough walkthrough

17.How to research crypto

18.Valuation metrics

19.Qualitative indicators

20.Reading a white paper

21.Crypto news sources

22.Crypto tokens

23.Initial Coin Offerings

 24.Timing the crypto market

25. How much should you invest?

26.Crypto taxes

27.Actionable steps to take now

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 1.My background as an investor

so let’s go over my background as an investor so i am a real estate broker and i’m also a serial entrepreneur doing
businesses and many different things i 
have seven years of investing experience so i started investing about i think
2014 and right now i do have a multiple


crypto fully explained

six figure crypto portfolio also as you guys can see i do youtube so i’m an
active investing personal finance and entrepreneurship content creator and i really do believe that learning the
fundamentals of investing is super important and it’s really going to make you guys want to get started with investing
in stocks crypto anything else
i truly truly do believe that investing is a way for anyone to build wealth and
that’s why this channel is really dedicated to helping you guys build income and become millionaires in the next
you know five ten years.

2.Why you need to invest ASAP

so let’s talk about why you need to get started investing as soon as possible so in the
last decade bitcoin has grown from 
around one dollar in 2011 to over 40 50 60 000 in just one single decade now depending on when you guys are watching this video uh you know crypto is very
volatile so the prices are going to be 
changing all the time but still one dollar to 40 50 60 000 as of right now

that’s pretty insane cryptocurrencies are still becoming popular and what i mean by that is the whole crypto space
it’s still super young and it’s just

becoming more mainstream it’s a new way of decentralized currency that the
governments cannot really control that’s what really makes it enticing for a lot of people and right now it’s starting
to get more and more financial backing from
institutions more financial giants such as paypal and square are putting crypto
onto their platforms and that’s really going to change the whole crypto space so yeah we are still early if you’re
watching this video right now crypto
it’s pretty mainstream but it’s still not as mainstream as it could be and for
example recently tesla just bought 1.5 billion dollars of bitcoin and they added that to their balance sheet,

 so that
was pretty interesting here’s a quote from maria paula fernandez that i really enjoyed investing in bitcoin and ethereum are natural ways to minimize
the trust layer in governments in institutions

that fail to look out for the public and protect individuals from
the fragility of traditional financial systems as they are both assets that do not require central parties to verify
create or administrate them so yeah 

it’s really taking the power from the banks and from the government and putting it
into the hands of the investors so now

3.An Introduction to Crypto

let’s talk about what cryptocurrency is right this is going to be a brief
introduction to what you’re actually investing in so the crypto in cryptocurrency that stands for cryptography and this is basically the
discipline of writing or solving codes,
and then the currency part in cryptocurrency that just means money in any form
as a means of exchange we’re gonna discuss the cryptographic side of cryptocurrency soon but just for now
know that the name cryptocurrency is a purposeful combination of two important ideas now why are we investing in
cryptocurrencies what’s the whole point.
so crypto is basically an opportunity at building a decentralized system of
currency that is based upon majority consensus this means that the whole system has pretty high integrity we’re
basically eliminating the need for banks,
or mill men to control money accounts and transactions now as a result of all
that crypto networks are immutable and this means that they cannot be altered or deleted immutable transactions make
it extremely difficult or nearly impossible to manipulate data that’s stored on the network it’s not just stored
in one place it’s stored all over
the place and that also means that it’s partially immune to government shutdown
or intervention so then how does cryptocurrency work so on crypto networks anybody that wants to can verify
everyone else’s money basically
how much they have in their accounts and their transaction history so
volunteers are constantly adding data to a public digital ledger and this is a collection of all financial accounts and
transactions known as the blockchain any

user that wants to execute a transaction must pay a transaction fee to the
volunteer and these transaction fees they’re going to vary and it depends on the cryptocurrency if you guys want to
look up the different transaction fees
you guys can go to that was a pretty good resource for finding
out that information so over here on the slide on the right this is an example of a centralized ledger aka a general
ledger this contains all the accounts
and transactions in one spot so for example a bank would have total control
over which transactions are posted on this ledger since they are basically controlling it and the owner of the ledger
can pretty much manipulate or shut it down giving it more authority.

 than optimal now for distributed ledger
aka blockchain that’s what it is this is basically like a shared ledger it’s different from that general ledger there
really is no central administrators so
it’s sort of like an asset database that is shared by all the participants
within network so if there’s a change in the ledger then everyone is going to see that and that basically results in more
transparency and we’ll talk about that more on the next slide 

4.What is blockchain?

so what is blockchain the term blockchain refers to a
type of database in which a collection of computers operated by different individuals in different locations is
constantly adding information so to put that in other words blockchain basically refers to the digital public ledger
where individuals are constantly adding information about digital crypto transactions for example bitcoin right if i
make a purchase or transfer uh from
my wallet everyone out there can actually see that transaction they can see how
much bitcoin is in my wallet
they can see what money is coming in what money is going out and that’s pretty
much what makes it so decentralized so that no single person or group has full control rather every user in that group is going to retain
control at all times so let’s talk about

the name blockchain right so block actually refers to a block of information
and then the chain part these are new blocks of info that are being added to existing sequences of
blocks or a chain of blocks 

5. Crypto mining

as you can see on the picture on the right so now that we’ve sort of got what crypto is
out of the way let’s talk about crypto
mining because i think this is an extremely uh interesting way to make a little
bit of passive income so basically when you’re mining crypto you are the volunteer that is verifying the
validity of digital transactions on the
crypto network as a miner in the network you are racing to add a block of
information to the blockchain and to do that you are essentially just solving really hard math problems and complicated
codes and when you’re doing
that you are verifying identities and transactions solving these types of
problems requires a really hefty computer system which is known as a mining rig so if you look at the picture on
the right that is basically a pretty
intense mining rig and these use a lot of electricity that’s where you’ve heard
the thing about bitcoin where it takes up a lot of energy to maintain the blockchain so by setting up a mining rig
like this you can actually get a return

for your investment every time a miner successfully adds to the blockchain he
or she is going to receive a certain amount of crypto coins and the only way that new coins can be added into
circulation is when miners successfully
add to the blockchain now you don’t really need a crazy mining rig like that
you can have a pretty powerful computer and then we’ll do the same thing as long as you have a pretty strong graphics
card like a gtx 3060 3070 or 3080 you should be able to generate at least a few dollars of bitcoin per day by mining
now instead of mining directly yourself.

you’re probably going to be using a mining pool or renting out your computing
power on a platform like nicehash i actually tried mining recently and i used nicehash and i thought it
was a pretty cool way to actually generate like seven or eight
dollars per day in passive income if you guys are interested more in crypto
mining then i recommend doing a search on youtube or google there’s gonna be a lot of in-depth guides to how you can
actually mine crypto but uh this course is more gonna be like how you can invest in crypto

6. Popular cryptocurrencies

i just thought it’d be
pretty interesting to include uh one slide
about crypto mining so what are the popular cryptocurrencies right obviously
the biggest 

cryptocurrency in the world is the original one and this is bitcoin besides bitcoin there are so many other
new coins that are popular and there’s 

so many new coins being created every single day but right now some of the big
crypto coins are ethereum tether polka dot cardano ripple litecoin binance coin bnb stellar dogecoin uniswap chain
link and there are a lot more besides these but that’s just an overview of some of
the more popular cryptocurrencies so now

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7.How to value a crypto coin


what dictates the value of a cryptocurrency so it’s just like any market um the
value of this good aka 

crypto is going to be what people are willing to pay for it if you have an
overbund supply of crypto and not that


much demand well that’s going to make the prices go down and if you have a lot
of demand but it’s not a lot of supply 
aka not too many people are trying to sell their bitcoin or other crypto then
that’s when the prices are going to


actually go up so it’s not just supply and demand there are some other sources
of value for example the brand an 
interesting example of branding is dogecoin you guys might have heard of it it
really exploded in 2021 but basically


dogecoin started out as a joke right it was made to appeal to the internet
community using a really popular meme 
and after being endorsed by elon musk on twitter the value of dogecoin just
shot up astronomically and that was basically a huge branding win for dogecoin
because dogecoin basically


latched on to elon musk and his whole message and that’s what really helped
this coin go up in value another source 
of value is utility right so what it can actually do and a great example of
this is ethereum ethereum is a blockchain


based crypto platform that is actually more efficient than bitcoin i really do
think that they can revolutionize the 
development of these decentralized applications and then another really
important source of value is importance 
so a great example of this is bitcoin bitcoin is not the most efficient crypto
out there but it is the first


cryptocurrency and it really had a really big role in catalyzing the expansion
of the crypto space that’s why 
it’s the original the og and that’s why it’s the coin that most people think is
just going to never die okay so there 
are some

8.Risks of investing in crypto

risks in investing in cryptocurrency because it’s pretty volatile and
there are many other 

different types of investing that are probably going to be a lot safer but it’s
really hard to deny the appeal of 
cryptocurrencies especially in the last few years where people have made a ton
of money so if you look at really 

ogcoins like bitcoin or ethereum even these types of coins have really volatile
short-term price movements 
that’s really not normal for a popular and well-established investment but yeah
that’s just the way of cryptocurrency


it’s always going to be quite volatile and if you want the most stable
long-term winners for crypto it’s 
probably going to be bitcoin and ethereum now these are relatively stable
they’re not stable at all compared to


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many other investments but for crypto they are pretty good so i want you guys
to remember this when investing when you 
have greater risk that means you have the potential for greater returns and
when you have greater returns aka the


price shoots up astronomically this also presents greater risks as well there
are a lot of people making a lot of money on 
crypto these are probably the stories you’re going to hear in the news or on
the internet but there are also a lot of


people that are going to lose huge amounts of money they’re probably not going
to post that loss on the internet.

9.Intro to crypto wallets

so you’re not going to hear about them as much okay so let’s talk about what
crypto wallets are so crypto wallets are 
software’s that are linked to the blockchain

 that monitor and execute crypto
transactions it’s basically like 

a personalized bank account for your crypto and every crypto wallet is going to
have a public key as well as a 
private key the public key is basically like your mailbox it’s the one that
everyone can see and people can send



cryptocurrencies to that address now on the other hand there’s the private key
and this is basically the key to your 
mailbox the private key is going to allow you to sign off your transactions and
validate your public key so if it’s


not your keys that means it’s not your bitcoin so to truly own cryptocurrencies

 you need to own the wallets that have the keys that represent your unique
digital id if you want to actually hold


your crypto yourself and manage it yourself you’re going to need an actual hard
crypto wallet and that’s a little 
bit different from the apps like coinbase and robinhood where they basically
securely manage the rights to 
your private keys we’ll definitely 

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10.Types of crypto wallets

talk more about that in the upcoming slides
now for the different types of crypto 
wallets right you have your hardware wallet and this is basically an offline
storage device like the ledger on the


right or trezor ledger and trezor are probably the most popular brands for
hardware wallets these are extremely 
extremely secure ways of holding your crypto a mobile wallet is another type of
crypto wallet and these are basically


mobile apps and your crypto is stored on there so popular examples of these are
exodus and atomic then you also have 
desktop wallets these are installed on your desktop itself and they offer a
little bit more advanced features and


more autonomy then you have your paper wallet and this is basically a document
that includes your keys and a qr code 
this is pretty secure because to steal your wallet people are going to need to
steal this piece of paper so you’ll definitely want to secure your paper.

11.Overview of crypto investing platforms


wallet in something like a safe now let’s talk about the platforms for
investing in cryptocurrencies that 
almost all you guys are probably going to use we’ll be talking about platforms
like coinbase and robinhood which


actually allow you to open up a standard brokerage crypto account on them now
when you open up a standard brokerage 
crypto account on these platforms just like anywhere else the capital gains are
going to be taxed but only when those

gains are realized aka when you sell the great thing about these apps is that
they are super easy to use they’re super.


accessible and they are basically where 99 of people that are investing in
crypto are going to start off with 

12.Coinbase walkthrough

so i will put some links to these platforms in the description below and you can
actually use them and get some free bonuses so first i’m going to take you


guys through coinbase this is one of the most popular platforms for investing
in cryptocurrencies so i’m here in my


coinbase account right now um you can see this is my portfolio bounce up up at
the top um this is my watch list right 
here of crypto coins that i’m looking at um if you scroll down here they have a
cool section called top movers so you


can see which coins are going up the most and which coins are going down the
most and if you come down here coinbase actually 
has a really cool uh reward system so if you click this you can see different
ways that you can actually earn


cryptocurrencies by doing these simple tasks for example for stellar lumens you
can earn a total of ten dollars two 
dollars when you watch this video about what seller is another two dollars here
another two dollars with this and yeah


it’s pretty cool way to earn some uh free money um and if you come down here
you can actually see that you can invite 
your own friends so basically when you invite someone and they buy or sell a
hundred dollars of crypto or  
well now i’m going to go here to my portfolio and this is where you can see the
value of your investment so in the


last day you can see the value has gone down and up and down so it is very 
volatile you can zoom out um to the last week or month or year these really big 

jumps are when i basically deposited a lot of crypto in my account um and then
you can come down here and


look at your holdings for each of these if you go to the prices tab you can see
it’s going to tell you if the market is


down or up in the last 24 hours so as of right now it’s down 4.5 8 
um you can look through all the different assets um on coinbase and yeah if you actually want to buy some crypto on here you can click on this middle uh


blue button right there and then you can click uh buy crypto with cash you can
sell crypto for cash you can also 
convert one crypto to another you can send crypto to another wallet or you can
receive crypto from another wallet so


for example if i want to buy some crypto right now i can click that button i’m
going to click bitcoin right here and if 
i want to buy something i’ll just input the amount i want to buy and i’ll click
preview buy


and then i’ll press buy now but yeah coinbase is a super super easy to use
platform um i highly recommend it and if 
you click on each type of coin you can actually see how much you have and then
you can also learn more about that 
particular coin for example you can go to the official website you can read the
white paper um it’s going to tell you 
all the market stats so the market cap the volume circulating supply trading


and typical hold time if you scroll down to the bottom you can actually see all
the different uh current news.

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13.Robinhood walkthrough

about that coin so that’s also a pretty interesting thing to read if you want so now i’m
gonna be taking you guys through robin


hood which is another super simple and easy to use stock brokerage app that
also allows you to buy and sell 
cryptocurrencies i do want to give a shout out to robin hood for sponsoring
this portion of the video and really making this whole video possible so


robinhood is an app i’ve been using for a long time i really love this app it’s
super easy to use it really makes 
investing so simple it’s probably one of the best user interfaces for any type
of investing app i’ve ever used so i’m here


in the browse section of the app and this is basically where you can see uh
some of the trending lists um especially


for crypto stuff so if you look here um i can click on crypto right here and
it’s going to take me to all the 
different cryptocurrencies that you can buy and sell on robinhood now if i want
to invest in bitcoin i’ll just click


here on bitcoin and it’s going to take me to this page basically at the top
you’re going to see the live price of 
bitcoin like i said it’s volatile it’s always going to be changing and under
that it’s going to show you the actual


change for the last day if i want i can go to the actual live price chart right
here um i can look at the one day chart


i can look at the one week chart i can look at the one month chart and you can
actually see the individual prices by


scrolling through it’s going to show you the open price close price high price
low price as well as the change and yeah 

if you really want to zoom out to the last three months or one year or five
years and yeah if you look here you can see the price in the last five years


just how crazy volatile is but also how much it’s grown in the last one year
down here you can see your own position


in the coin so it’s going to show you the quantity of bitcoin you have your
equity your average cost as well as your 
portfolio diversity and here’s where i can see my return for today as well as
my total return and i really love this


section because you can actually read up on any news for bitcoin um i check
this out pretty consistently it’s a great way 
to get more information about the current market and down here is your history
it’s any buys and any cells that


you have made i’ve also bought some dogecoin on robinhood so here you can see
the price like before 
you can zoom out to see the one year price three month price uh you can see the
quantity average cost equity and 
then same thing with the bitcoin side you can look up any news about dogecoin
and here’s going to be your history about any buys or sells you have made


now coming back here to this browse page i really do like this training list
page because you can look at altcoins for


example if i take a look at the ethereum family i can explore all ethereum
currencies so right now ethereum and the theorem classic are available on
robinhood robin


is also really cool because you can invite your friends and actually get free
stocks for referring them and i 
really love the statements and history section because this is going to
actually show you um all your recent


history so any dividends you receive any buys or sells you make and then also
if you want to see your tax documents this 
is a really great way to see that let’s talk about some of the benefits of
robinhood and the first and most obvious


one is zero percent commission fees on all crypto and stock buying and selling
so basically if you’re buying 10 of 
bitcoin on robinhood you’re actually going to get 10 of bitcoin and it’s the
same thing with selling if you sell 10


of bitcoin you’re going to get 10 in cash back on their platform you have
bitcoin ethereum dogecoin and some other 
various altcoins that you can buy and sell right now there’s no account
minimums and like i said before it’s a


super easy to use interface i absolutely love it it’s also extremely secure
they have not been hacked into unlike many 
other platforms out there so i do feel really safe holding crypto in my
robinhood account there’s a very very


low barrier to entry when you use robinhood so they make it extremely easy to
actually start investing which i 
absolutely love about their platform and what a lot of people don’t know is
that they store your coins for you one to one


in cold and hot storage this does mean that your crypto is extremely secure so
to document how awesome robinhood is


with their zero percent commission fees i’m actually going to be buying a
hundred dollars of bitcoin on robin hood


as well as a hundred dollars of bitcoin on coinbase so i’m gonna click here buy
i’m gonna click a hundred dollars 
of bitcoin a hundred dollars okay i’m going to preview the buy and review


cool bitcoin purchased on robinhood and order submitted on coinbase so if i 
compare these two you can see that there actually is a pretty big difference
right so on robinhood i purchased a 
hundred dollars  

14.Gemini walkthrough

i got 0.00252183 bitcoin and over here on coinbase um i got 0.00244215 bitcoin there are a couple other platforms that you guys can use i’m just going
to go over gemini real quick as well as this is gemini and


this is another platform for actually investing in cryptocurrencies i’m on the desktop
right now and you can see 
you can actually buy and sell these coins if i go here to bitcoin it’s going to
show me the price chart i can zoom


out to the one week one month one year price chart i can click watch this um i 
can set alerts as well it’s gonna tell me about bitcoin it’s gonna show my own
bitcoin here so i actually don’t have 
any bitcoin in my gemini accounts yet and if you want to buy and sell bitcoin
it’s actually quite simple you just go


up here select buy or you can click sell you can say if you want to sell it


daily weekly twice monthly or monthly and then you can choose how much you want
to sell gemini also has a really


cool thing called gemini earns so if you actually uh have any of these coins
right here and put it into your account 
you’re going to start earning this annual percent yield that’s listed right
here so for example


uh let’s see if litecoin right if you have litecoin in your account you can
earn 4.5 percent on that if you have 
ethereum you can earn 3.05 as of right now if you’re bitcoin 2.05


and yeah this is a pretty interesting way to actually make some money from the
bitcoin or cryptocurrencies that you 
hold i’ll put my link to gemini in the description below because if you use
that um you’re gonna get ten dollars in 
free bitcoin and then you can get your own link and then invite friends they’ll
get ten dollars of free bitcoin too when

15.BlockFi walkthrough


they use your link and you’ll get ten dollars as well block five is another
cool way that you guys can actually earn


money on the uh crypto that you have so if you go to your interest account here
you can see this is my current uh


interest balance um this is the total amount of interest i’ve been paid and
this is my accrued interest 
in the last month so for example if you have any bitcoin you guys are gonna get
five percent apy on that i’ll put the


link to block five in the description below you guys can actually get up to 250
dollars for free by using that link


and signing up but yeah this is cool because you can actually open up a blog
fight interest accounts and earn interest on any cryptocurrencies you


have stored on block five so for example for bitcoin uh if you have zero to 0.5 
bitcoin you’re gonna get five percent apy on that uh any bitcoin you have above
0.5 but under 20 you’re going to


get 2 and then if you have over 20 bitcoin any amount over that is going to get
percent you can also get paid for having chain link you can get paid for having
ethereum litecoin as well as these coins 
that are actually backed by the us dollar so you can get up to 8.6 percent 9.3
percent on those so yeah that’s just walkthrough


another cool way to make some passive income from your crypto holdings and then
lastly this is another very popular


app for investing cryptocurrencies and this is basically the app so
here i am in my dashboard you can see my


total balance up there i don’t have much in here but a lot of people do use as 
one of their main platforms if i go here to bitcoin i can actually you know
look at the one day one week one month three


month six-month price chart um you can see right now bitcoin is trading at just
over forty thousand dollars per coin you


can see all this other data right here and if you want to buy bitcoin on uh you just go down here and 
click buy btc and you can add a credit card or debit card and purchase like
that you can also use your crypto wallet


to purchase bitcoin or your fiat wallet also has a cool way to earn
some passive income from your crypto


holdings so you guys can take a look um if you want to stake any of these coins
you’re gonna get you know 6.5 
for bitcoin 5.5 for ethereum 

it’s just another cool way to make some passive
income if 
you guys want to use my link i’ll put that below and if you use that you’re
actually going to get a 25 sign up bonus

 and once you’re signed up you can actually give your friends uh 25 when they
sign up using your link .

17.How to research crypto

you’re going to get 25 in rewards okay so now that we’ve gone through all the
walkthroughs of these platforms you can


use to invest in cryptocurrencies let’s talk about doing your own due diligence
and how to actually research crypto what 
due diligence means is basically you want to investigate audit and assess any
business or any asset you’re thinking


about investing in you absolutely want to take the time to fully understand
anything you’re putting your money into 
because if you don’t understand you’re really at a big disadvantage so we’ll
talk about the fundamentals and the


evaluation metrics that i think you guys should know so the market cap the nvt
ratio circulating supply trading volume 
uh mvrv ratio the major multiple and basically what volatility is then we’ll go
through some qualitative indicators 
such as the website getting to know the creators github the total addressable

18.Valuation metrics

the usefulness catalyst contact points the white paper and also looking at news so
let’s start with valuation metrics more


specifically the market capitalization the market cap provides the total market
or the network value of a cryptocurrency


so to get this you’re basically taking the total coin supply and multiplying it
by the latest trading price let’s say 
for example there’s a coin out there there’s a total supply of 10 coins and the
latest trading price is 5 that’s


going to result in a market cap of 50 now market caps can be a little bit
deceptive with any forks and forks are 
basically new software protocols or updates that can allow for spin-off coins
to be forked off of a parent coin


so whenever a new coin is forked off of a parent coin this new coin is going to
inherit the coin supply of the parent 
coin and as a result new coins can appear to look well established and valuable
so that is a little deceptive


just thought you guys should know that now let’s talk about the network value
to transactions ratio aka the nvt ratio 
this is essentially the p e ratio or the price to earnings ratio of that crypto
coin and this is going to describe the


relationship between the market cap and the transaction volume to calculate the
nvt you take your market cap and divide 
it by the daily transaction volume you’re essentially looking for a lower
number right so anything under 15 is


probably good it’s going to be bullish and anything under 25 is more likely to
be bearish now you’ll notice that the


price to earnings ratio for stocks is similar but for crypto there’s no
earnings right these aren’t actual like


revenue generating companies so that’s why we have to use the nvt ratio another
thing to look out for is the circulating


supply so this is the approximate number of coins circulating in the market you
can easily find this information on many


different sources such as yahoo finance or coin market cap and pretty much any
website is going to have this


information another important valuation metric is the trading volume so this is
basically the number of coins that has


exchanged hands in the last 24 hours the higher the trading volume the more this
coin is being traded back and forth aka 
the more activity there is and the lower the trading volume means that there’s
not as many people buying and selling


right now now the mv rv ratio this is the market value to realize value ratio
and to find this you’re basically taking 
the market cap what we talked about earlier and divide it by the realized
capitalization this is going to consider


any lost coins or coins that are no longer in circulation if the mvrv ratio 
is under 1.5 that could mean that the coin is undervalued and if it’s over 3.5 this means that it could be over valley the mayor multiple this is another one
that’s important and it’s basically the


price divided by the 200-day moving average so for example if the current price
is five dollars and the 200-day


moving average is 10 this means your major multiple would be 0.5 anything under
1 could mean that 
it’s bullish right it could break out and anything over 2.4 means that it could
be bearish this makes sense


because if your major multiple is smaller it means that the current price is
under the 200-day moving average and 
if this ratio is over one this does mean that the current price is above the
200-day moving average volatility is


also important right this is basically going to measure the extent to which a
cryptocurrency’s price fluctuates over 
time and it’s measuring the standard deviation of the current price relative to
the 30-day moving average i know some


of these might seem a little bit confusing don’t really worry too much about
how they are calculated a lot of the crypto.

19.Qualitative indicators

websites are going to calculate them for you and just show you the number basically you just want
to know what they mean and how to interpret it now for the qualitative


indicators the first one we’re talking about is assessing the website so
obviously the website has to look good


right i recommend looking at the aesthetic the design and how professional it
looks if it looks scammy 
 then well the coin could be scammy because there’s so many coins out there that
don’t have any actual value and


they’re just scams so you want to definitely see if the website looks good and
you also want to see what information the website presents and if 
it’s transparent this is a website for ethereum on the right obviously it looks
great but that’s because the theorem is 
one of the best coins out there we’ll also want to look at the craters of that
coin right you want to know their reputation what their technical


background is and whether or not they are trustworthy so i just say trust your
gut on this do some quick research about 
who founded that coin and whether or not you’d actually trust them now the
github this is actually going to show you the


code of many of these projects and if you’re a potential buyer of that crypto
you can examine the crypto network’s


code and see how it is right this is more for the advanced and experienced
coders and programs out there otherwise


you probably won’t know what’s going on another qualitative indicator is the
total addressable market tam and you’re


gonna be asking how will this particular cryptocurrency appeal to the market
it’s addressing like is it actually gonna be 
creating a new market of its own for example ethereum you know it’s proposing
to revolutionize the development of


decentralized apps so that was a brand new use and it’s something that had a
lot of utility to it and the usefulness 
basically this ties in with the addressable market like what utility or value
can this crypto bring if it’s just


the cash grab then it’s probably not going to have any utility but if it
actually does have some usefulness then that is something that you do want to 
see with a cryptocurrency coin catalyst are any unexpected events announcements
updates or revolutions to occur with


this crypto so for example dogecoin right the price of dogecoin can actually be
quite influenced by any tweets by people


like elon musk obviously this means that it can be quite volatile and you
really don’t have control over the catalyst 
because we don’t know if elon musk is going to tweet something good about
dogecoin or something bad and then finally contact points so how can


potential buyers or investors learn more about the cryptocoin how can they
actually reach out to the creator of the 
coin and then how frequently do the crypto creators reach out and update their
investors these are all things that you should be considering when

20.Reading a white paper


analyzing a specific cryptocurrency another thing that a lot of people actually
skip is reading the white paper 
so a kryptos white paper is a document that’s created by the creators of that
crypto and it helps to sell it it’s


going to include facts about the crypto any diagrams statistics and quotes it’s 
more technically oriented and that’s why a lot of people they won’t actually
read the white paper so here’s the general


structure of a coin’s white paper first you have the abstract this is just
going to be a summary of the coin then you’re


going to have the introduction and this is where they’re going to present any
problems and propose any solutions they


have then they’ll get into the technology so what sort of technology is
actually backing this crypto they’ll


talk about the transaction tech uh how it’s exchanged they’ll talk about the
mining tech how the crypto is created in 
mind and also the network text so how’s information communicated within the
network now talk about any incentives


they have so why you should participate in this crypto network rather than
others the talk about the emission plans


so how will the creation of new coins or tokens be conducted there’s going to
be a conclusion so they’re going to review


all the presented information from the earlier parts of the white paper and
finally there’s probably going to be references so these are the sources and 
citations over here on the right is bitcoin’s white paper it’s just the first
page of it if you want to read up 
on bitcoin’s white paper 

21.Crypto news sources

you can easily find it online just search a bitcoin
white paper and the whole thing is going 
to be there if you want to stay up to date with any crypto news i do think
that’s extremely important because


crypto is really reliant on the news and any current events that are happening
so this is a list of some great news


sources i recommend of course you have robin hood and coinbase these apps you
can actually buy and sell crypto but 
they also have a ton of articles and information about cryptocurrencies

also have this is a new 
ource for many different cryptocurrencies and you can check the price
movements and other data on there is another one similar


to coindesk you also have this is a live news aggregator for all 
cryptocurrency news give and this is a resource for specializing
in politics and legislation regarding


bitcoin and other crypto coins and you have there’s actually a ton
of really interesting information on


this forum and these are communities where more experience as well as beginner
crypto investors are just


interacting so people will post links to useful information there’s a lot of
intriguing discussion on here and yeah

22.Crypto tokens


it’s just a cool place to really talk to other people about crypto let’s talk
about what tokens are so tokens are 
units of value that are issued by crypto startups and represent pieces or


of a crypto network so these tokens themselves are sold for fiat or
to raise money for that 
crypto startup for example they can be issued by ethereum waves or eos now
there are a few different types of


tokens the first one being equity tokens these are like digital shares of a
company the second is utility tokens 
these provide a certain privilege or opportunity to the owner and then you have
asset backed tokens and these are


backed by a real commodity for example diamonds or real estate if you look at
this picture right here you can see some 
examples of coins are going to be bitcoin ethereum ripple 
litecoin cardano and
iota and then examples of tokens .

23.Initial Coin Offerings

going to be things like tron and v chain see just different ways of
categorizing cryptocurrency let’s talk about initial


coin offerings icos and these occur when a crypto company is trying to raise
money to create a new coin app platform


or network essentially they are the ipos the initial public offerings of the
crypto world now with icos these can be 
xtremely risky you could lose all your money that’s why i say definitely have
some caution before you actually

put money into any icos since crypto is such an unregulated space there have been
many failed icos as well as fraudulent


icos but if you do want to take a shot and take a gamble you can basically 
register for the ico through the network’s website you’ll move your bitcoins or
ether to the wallet and then


you’re going to buy ico tokens by sending crypto to their address a lot of icos
were scams back in 2017 2018 

 24.Timing the crypto market

so i definitely recommend avoid these if you can now let’s talk about time in the
markets um if you guys are interested in 
time on the market or day trading cryptocurrencies i say it’s a little bit more
risky this is always the case when


investing right short term it’s always more risky long term it’s a little bit
safer i’d recommend learn about the


strategies for day trading stocks as its strategies are going to be pretty
similar to when you trade 
cryptocurrencies i’m not going to get into them in detail in this video but you
can look into the bollinger bands


daily volumes and trading indicators basically there’s gonna be a lot of
charting involved the most important 
concept though is that time in the market beats timing the market most day
traders are going to lose money but most


people that stay in the market for a long time that are long-term investors are
going to make money if you guys are 
interested in investing in crypto long term but don’t want to do a lot of
research on each of these coins i actually recommend looking into the


crypto 20 index fund it is what it sounds like you’re holding the top 20 coins
at any given time when you invest


in crypto 20. they’re going to readjust the funds on a weekly basis and you can
earn profits by holding a single token 
of the fund not necessary .

25. How much should you invest?

just another different way of investing in crypto
so now how much money should you


invest i always like to remind you guys that cryptocurrencies are still a
pretty speculative and volatile market it’s new


it’s still developing and it’s not fully understood by most investors as a
result of that it’s going to be a risky


investment no matter what don’t expect to strike it rich or become a crypto
millionaire just by buying some crypto 
and holding it i’m not trying to deter you from investing in crypto i’m just
saying that for every successful investor there are a lot of people that


lose money so that’s why you need to invest with caution and that’s why you
need to do your own due diligence

 if you’re trying to time the market i’m just going to say that’s probably really really hard to do because if you could
time the market accurately then you’d be 

the wealthiest person in the world so no one can time the market the safest way
to invest is just invest your money into


whatever crypto you believe in and leave it there long term for most you guys i
wouldn’t recommend putting over five to 
ten percent of your whole portfolio into crypto the rest should be invested
into index funds uh stocks real estate other.

26.Crypto taxes


things like that and i do want to remind you guys i’m not a financial advisor
so these are just my opinions we’re almost done you guys but i want to remind


that cryptocurrency is taxed you are going to be taxed for any capital gains
that you receive while training crypto 
so let’s say you put a hundred dollars

 into bitcoin and you sell it for 200 you
basically are receiving a gain of a 
hundred dollars that hundred dollar gain is going to be taxed either as a
long-term capital gain or a short-term


capital gain if you’re holding the coin for over one year and then selling it
that’s going to be a long-term capital


gain and that tax level is between zero to 20 percent based on your income


on the other hand if you’re holding that coin for under one year and you’re
selling it for a profit that’s going to 
incur a short-term capital.

gain this is going to be taxed at your normal income
tax bracket so that’s going to be up to 
37 federal as of right now that’s why i always recommend if you can hold for over a year because your tax is probably going to be a lot less than if you
just kept buying  .

27.Actionable steps to take now

selling and buying and selling okay so what are some actionable steps you guys can take right now
first i recommend just open up a crypto


investing account you can use coinbase robinhood gemini any of these
platforms will suit you well and i will 
include links to them in the description below if you use those links

 you’ll be
helping to support the channel and you’re also going to get a free bonus as 
well after that you want to fund your account so you’ll want to deposit money
from your bank account and before


actually investing in anything you’re going to want to do your due diligence
you’re going to want to do some more research about what you’re investing


your money in and what each of these coins actually does then you’re going to
invest some of your money into the 
crypto of your choosing and like i said crypto is quite volatile so pick wisely


and only invest what you can afford to lose the crypto market is always
changing so that’s why i recommend 
always keep researching always keep learning about crypto that way you can stay
up to date on new opportunities and


yeah just being in the know for what you’re investing in is extremely important
thank you guys so much for your time i know that was a very long 
course but i really do hope that you guys got a ton of value out of this free
course i really encourage you if you


like crypto to start investing today the first dollar you invest is always the
hardest but it gets easier from there on




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