Crypto Novice Course E-Book

Mario Financial Insider

• Herausgeber: epubli
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 133

Veröffentlichungsjahr: 2026

Beschreibung

The Crypto Novice Course is your structured entry into the world of cryptocurrencies—well-founded, critical, and practical. This book is aimed at beginners who don't just want to buy Bitcoin & Co., but truly understand them. Instead of hype and empty promises, you gain a solid foundation: Why were cryptocurrencies created? What real problems do they solve? And why does Bitcoin hold a unique position? You will learn how transactions on the blockchain work, what a wallet is, and how software wallets differ from hardware wallets. Step by step, you'll discover how to securely purchase and store your first cryptocurrencies—and how market indicators can help you better understand price cycles. Building on this, the book explores the world beyond Bitcoin: What are altcoins? Why is Ethereum more than just "number two"? What distinguishes a coin from a token, what do Layer 1 and Layer 2 mean, and what role do stablecoins play? In the final section, the door opens to decentralized finance (DeFi). You will get to know decentralized exchanges, understand the difference between APR and APY, and receive clear guidelines for distinguishing reputable protocols from questionable constructions. Topics such as protocol security, audits, and common scam patterns are explained in a practical and accessible way. "Krypto Novizen Kurs" combines technical fundamentals with economic understanding and critical evaluation. It is not a get-rich-quick guide, but a compass for those who want to act in the crypto market in an informed, independent, and responsible way over the long term. Because anyone who invests without understanding is speculating. Those who understand make deliberate decisions.

Leseprobe

Crypto

Novice

Course

Getting started in the World

of Cryptocurrencies

Mario, Financial Insider

Copyright © 2023 Mario, Financial Insider

YouTube:       youtube.com/@FinancialInsider

Telegram:      t.me/financial_insider24 (Channel & Group)

      t.me/FinancialInsider24 (direct Message)

E-Mail:             [email protected]

Illustrations:       Royalty-free Images from the Internet, own Designs

All Rights reserved.

Contents

(Headings, Footnotes, and dottedPage

Underlines are clickable)

Preamble 7

My Original Intention       10

Chapter I:

The Absolute Foundation 12

What Challenges Can Be overcome with Cryptocurrencies?13

Revolutionizing the Payment System 13

Economic and Financial Milestones            15

Pseudonymity and the Public Nature

of Transactions                              18

What is a Wallet?19

The Unique Position of Bitcoin 21

A Pseudo-Critical Examination of Bitcoin & Co. 23

The Previous Appreciation of Cryptocurrencies 25

Is It Still Worthwhile to Enter?       26

2-Year Moving Average Multiplier27

200-Week Moving Average Heatmap29

Pi Cycle Top Indicator 30

Stock-to-Flow Model31

Does Digital Central Bank Currency

Render Cryptocurrencies Obsolete? 33

Chapter II:

The First Steps into a New Universe 35

Software Wallet vs. Hardware Wallet36

Setting Up a Wallet & Buying Cryptocurrencies 38

Smart Entry:

One-off Investment vs. Savings Plan 40

Getting to Know the Basic Functions      42

Determining Network Workload and Fee Levels43

Understanding What's Happening on

the Blockchain                        45

Chapter III:

What Comes After Bitcoin? The Basics of Altcoins       47

What Are Altcoins?48

The No. 2: Ethereum49

Where There Is Light, There Is Also Shadow 50

What Is a Token Standard?51

Coin Vs. Token 53

What Does Silverware Have to Do with Cryptocurrencies?55

Layer 1,2 or 3? 56

Layer 1 – The Foundation 57

Scalability & Interoperability57

Price-Stable Cryptocurrencies:

The Stablecoins 59

Fiat-Backed Stablecoins 60

Crypto-Backed Stablecoins61

Commodity-Backed Stablecoins 63

The Oracle-Problem64

Fungible Vs. Non-fungible Token 65

Holding Altcoins 67

Chapter IV:

Decentralized Finance

A World of Unlimited Possibilities 69

Getting to Know the First Protocols70

Using Exchange and Swap70

Efficiently Utilizing Decentralized Exchanges 72

Identifying High-Quality Protocols74

      Track Record – What Happened So Far 74

      Is the Protocol Operating Efficiently and Profitably? 75

      Audits – Certification by Specialized Third Parties 76

      Conclusion & Rules of Thumb on Protocol Security 77

APR vs. APY 78

Legit vs. Scam80

      Imprint - Who, Where, How 80

      Support – Assistance with Uncertainties81

      Web3 Integration - A Unmistakable Sign? 82

      Authenticity of the Homepage 82

High Yield Investment Plans (HYIP’s) 84

Receiving Sound Investment Impulses 85

Final Words 86

Appendix:

Links to Essential Tools for

Dealing with Cryptocurrencies88

Index: Believe Nothing, Verify Yourself!92

Definitions: For a Unified Understanding of Terms98

Preamble

The consolidation of power has always been one of the central issues of our current system paradigm. And no, this wordplay was not planned but fortunately emerged on its own through the flow of writing. 'Power corrupts. Absolute power corrupts absolutely.', as a quote by Lord Acton goes1. Lord Acton was a British politician of the 19th century. Consequently, this insight is not new and has been known for many decades. However, centralization continues to advance rapidly. It leads to increased surveillance, greater interconnection of institutions, and the concentration of more power in the hands of fewer entities. Where this centralization leads in practice and the side effects it generates should become evident to anyone who has even a slight awareness of their freedom.

The 'Subprime Crisis' that occurred in 2007/2008, originating in the United States and escalating into a global economic crisis in the following months, can be attributed precisely to the consolidation of power. Banks and financial institutions had miscalculated and had to be rescued due to their 'systemically important' status. The losses of these institutions were offset with significant amounts of taxpayer money. This is also referred to as the socialization of losses, as the general public had to bear the burden. At the same time, the profits in the preceding years had been privatized, meaning they had been taken away from the public, if one adheres to the Latin word origin2. One might assume that after this crisis, significant changes would have been made to avoid future events of this kind. However, this was far from the case: no significant changes were observed.

But wait, hidden from the public eye, shortly after the aforementioned economic event, something changed. An individual or a group - this circumstance has not been definitively clarified to this day - who goes by the name 'Satoshi Nakamoto,' discovered the fundamental flaw in the system: centralization. Based on this insight, a technical entity was developed that is decentralized in nature. This system is no longer determined solely by a central entity but by the collective. The decision-making power over what happens within this closed system is thus in the hands of many and is based on the principle of consensus3.

"The consensus principle is a way to make decisions in a group where decisions are made without any objections," as stated in a Wikipedia article4. Unlike compromise, where each member involved in decision-making has to deviate from their original goal to some extent, consensus involves a shared 100% agreement. In other words, with a compromise, a decision is reached, but no one gets exactly what they want. In a consensus, everyone gets what they want. So, compromises are always imperfect, while consensus is optimal.

From this concept emerged the first fully decentralized network: the Bitcoin network, along with the first associated cryptocurrency. It can be used as a peer-to-peer payment system5 and has changed the world of finance, and it will continue to have a significant impact in the future. Only a few people realize, at the time of writing this book, the immense potential and the diverse opportunities that this new technology brings to us.

Those who have recognized that Bitcoin and other cryptocurrencies are not empty speculations, but have individual intrinsic value because they have the potential to solve significant problems in our world, will receive all the information they need from this book to take advantage of this unique opportunity with a solid knowledge. Some of the knowledge imparted in this book may seem superfluous at first. However, it is extremely important that we develop a real understanding of the mechanics behind it. Only then can we be sure that we know what we are doing.

I am writing this book because I want to accelerate the adoption of cryptocurrencies. The more people who use this technology, the better our chances of breaking free from the shackles of the old debt-based and inflationary FIAT monetary system and returning to true freedom. In such freedom, no one can be expropriated against their will, and entire economies cannot be brought to their knees due to speculation, thereby reducing the suffering of countless people, if not avoiding it altogether.

However, this freedom also comes with taking on responsibility. The time when we could rely on strangers to take care of us and delegate responsibility – and this extends beyond just finances – is over. The quality of our overall financial situation eventually reflects in all other areas of life: health, relationships, personal development, happiness, fulfillment, and more. This is because the means of exchange we use are the central pivot of our current civilization, whether we like it or not.

It is not without reason that the German banker Amsel Mayer Rothschild famously said: 'Give me control of a nation's money, and I care not who makes its laws.'6 The financial framework of a system determines the nature of that system. Whether the system is based on scarcity or abundance, it dictates what happens to the people embedded within it. Therefore, the design of currency is a crucial factor in our lives. The ultimate or overarching goal of this book is to ensure or restore the individual freedom of each person. One instrument for achieving freedom is financial independence. I wish every reader valuable insights and enjoyable reading.

Yours

Mario, Financial Insider

Learner’s Check:

What economic event caused cryptocurrencies to develop?

What is the purpose of finding consensus?

What is a peer-to-peer network?

My Original Intention

I have been working in the financial sector since the age of 15 and completed my training at a medium-sized cooperative bank. During my nearly 15-year tenure as an employee, I have gained extensive experience in trading various financial instruments, thereby gaining a comprehensive understanding of the financial world and its products.

I only became aware of the world of cryptocurrencies relatively late, as my own ignorance and narrow-mindedness prevented me from recognizing this opportunity earlier. However, my significant advantage was that, due to my previous background, I had at least an above-average foundational knowledge in finance. This included skills in chart analysis, reading fundamental data, understanding overarching market cycles, and applying specific tools essential for investing. As a result, I was able to build a solid understanding of cryptocurrencies in a very short time, although I also made many mistakes, especially during my early days in this field.

My personal situation allowed me to engage full-time in this field as I left my employment in early 2020. During my journey through the crypto space, I noticed a significant number of private market participants who, despite being invested in crypto assets, had no clue about what they were actually doing - neither operationally nor strategically. This behavior often surprised and even shocked me. Nevertheless, I always made an effort to assist when asked for help. However, as my online presence grew, the inquiries increased, and I began to wonder how I could help everyone without sacrificing my entire lifetime. The idea for this Crypto Novice Course was born and promptly implemented by me.

With this course, I aim to encourage people to delve into this extremely exciting field. For those who have already entered this world, I want to provide a solid foundation of knowledge, enabling them to understand the key mechanics, seize opportunities, and avoid costly mistakes. Ideally, the reader of this course will become so well-versed that they can progress independently and require minimal external assistance, as they have learned to help themselves. Some topics may not be covered comprehensively due to the nature of the written word. Therefore, I recommend using the accompanying coaching to delve even deeper into practical aspects of the subject matter and maximize the potential of this knowledge. Together, these two components provide comprehensive training that allows the user to thrive in the crypto market over the long term.

Learner’s Check:

What is the overarching goal that should be achieved through this reading?

Chapter I:

The Absolute Foundation

What Challenges Can Be overcome with Cryptocurrencies?

Or put this question differently: What gives cryptocurrencies their right to exist? Most people - especially those who have only dealt with the matter superficially - believe that cryptocurrencies are pure speculation. A bubble that will burst at the next opportunity and wipe out the capital of many market players within a very short time. But is that really the case? Let's take a look at each area where cryptocurrencies could actually bring about a revolution. Let's start with the most obvious: the financial sector.

Revolutionizing the Payment System

Until now, every individual's payment transactions have been processed through either a bank or another payment service provider. Thus, a third party is always involved in the payment or transfer process. Just as in the realm of trade, intermediaries contribute to the rising prices of offered goods because an additional party wants a piece of the pie. In this analogy, the bank is the intermediary, and the good is the provision of payment services. For domestic payments, this may not have a significant impact yet.

However, at the latest when the payments become cross-border, you will notice an enormous difference in costs. The Bitcoin network, like many other blockchains, eliminates the need for a centrally organized intermediary. This means that the mathematical construct of the blockchain allows a sender to send money almost directly to the recipient. This interaction between end users is called “peer-to-peer” in technical terminology. We therefore note that cryptocurrencies can massively reduce the costs of transactions - especially for those crossing borders.

Due to the fact that no central party is involved in the payment process, but rather it is distributed across many decentralized parties, there is another advantage: the exercise of arbitrariness and dependence on a third party is dramatically reduced or made impossible. The monetary aspect is often exploited to silence people who do not fit the narrative and hold an opinion that is considered non-mainstream. Cutting off cash flows can effectively render such people incapacitated. This is impossible with cryptocurrencies because there is no human authority intervening and able to exercise arbitrariness. This means that every user is treated equally on a human level, regardless of skin color, religion, beliefs or financial background. Everybody is equal. This is what Bitcoin offers by design.

What about the execution speeds of traditional payments? With certain payment service providers, immediate execution and posting have become the standard. So, when a PayPal user wants to send money to another PayPal user, the credit is already received within a few seconds. It's a different story for most bank transfers.

However, in the domestic or SEPA area, instant transfers are becoming more established. It's a transfer route that utilizes specific bank-to-bank connections to process transfers in a matter of seconds. But most banks are not yet connected to this system, so execution times of 1-2 days are common7. When it comes to international transfers to another continent, it becomes quite primitive: Some of these transfers can take over a week8.

Transactions in the Bitcoin network no longer distinguish between domestic and international payments. The recipient address is a location on the blockchain accessible from anywhere in the world. So, a transaction takes roughly the same amount of time, regardless of where the recipient is located, typically between 10 minutes and 6 hours, depending on network workload. However, it's important to note a weakness here: during some rare periods, the Bitcoin network has experienced high workload due to heavy usage by its members. This meant that users had to pay high fees to maintain the execution times mentioned above9. Scalability is one of the challenges that the Bitcoin network still needs to address.

Finally, it's worth noting that payments made through the Bitcoin network are irreversible. This means that no person or computer in the world can prevent or reverse a transaction initiated by a user. The only change that can be made to a transaction afterward is to have it executed faster than originally instructed. This fact underscores the importance of individual responsibility and security. Everyone is responsible for their own finances. Due to the nature of the blockchain, no one can intervene. Fraud within the blockchain is conceptually impossible.

Economic and Financial Milestones