Cryptocurrency Trading & Mining: Bitcoin and Ethereum Basics - Bendis A. I. Saage - English - E-Book

Cryptocurrency Trading & Mining: Bitcoin and Ethereum Basics E-Book

Bendis A. I. Saage - English

0,0
9,99 €

-100%
Sammeln Sie Punkte in unserem Gutscheinprogramm und kaufen Sie E-Books und Hörbücher mit bis zu 100% Rabatt.
Mehr erfahren.
Beschreibung

Discover the world of cryptocurrency trading and mining with this comprehensive guide that breaks down complex concepts into easily digestible information. Whether you're just starting your crypto journey or looking to enhance your trading skills, this book provides valuable insights into the fundamentals of Bitcoin, Ethereum, and the broader cryptocurrency market. The book begins with an in-depth explanation of blockchain technology, the foundation of all cryptocurrencies. Learn how digital wallets work, understand market mechanisms, and master essential security practices to protect your digital assets. The guide covers crucial aspects of crypto trading, including: - Different trading strategies for both beginners and advanced traders - Analysis of centralized and decentralized exchanges - Risk management techniques and portfolio diversification - Step-by-step guidance for setting up mining operations Dive into the specifics of crypto mining with detailed sections on: - Mining methods (solo mining, pool mining, and cloud mining) - Hardware requirements and comparisons - Profitability calculations and energy considerations - Network differences between Bitcoin and Ethereum The book also focuses on wealth building through cryptocurrency, offering: - Market analysis techniques - Long-term investment strategies - Risk assessment methods - Asset management principles Written in clear, accessible language, this guide helps readers navigate the cryptocurrency landscape with confidence. From understanding basic concepts to implementing advanced trading strategies, you'll find practical knowledge to help build your crypto portfolio and potentially join the ranks of crypto millionaires. Ideal for: - Cryptocurrency beginners seeking solid foundational knowledge - Traders looking to expand their strategic toolkit - Individuals interested in crypto mining operations - Long-term investors planning for digital asset wealth accumulation This book was created using innovative technologies such as Artificial Intelligence and specially developed tools – for example, in brainstorming, research, writing, editing, quality assurance, and the design of decorative illustrations. In this way, we want to offer you a particularly coherent, modern, and even higher-quality reading experience.

Das E-Book können Sie in Legimi-Apps oder einer beliebigen App lesen, die das folgende Format unterstützen:

EPUB
MOBI

Seitenzahl: 161

Veröffentlichungsjahr: 2025

Bewertungen
0,0
0
0
0
0
0
Mehr Informationen
Mehr Informationen
Legimi prüft nicht, ob Rezensionen von Nutzern stammen, die den betreffenden Titel tatsächlich gekauft oder gelesen/gehört haben. Wir entfernen aber gefälschte Rezensionen.


Ähnliche


Imprint

Saage Media GmbH c/o SpinLab – The HHL Accelerator Spinnereistraße 7 04179 Leipzig, Germany E-Mail: [email protected] Web: www.SaageMedia.com Commercial Register: Local Court Leipzig, HRB 42755 (Handelsregister: Amtsgericht Leipzig, HRB 42755) Managing Director: Rico Saage (Geschäftsführer) VAT ID Number: DE369527893 (USt-IdNr.)

Publisher: Saage Media GmbH

Publication: 02.2025

Cover Design: Saage Media GmbH

ISBN Softcover (en): 978-3-384-53501-6

ISBN Ebook (en): 978-3-384-53502-3

Legal / Notices

All rights reserved. No part of this book may be reproduced, stored, or transmitted without written permission from the publisher.

The external links and source references listed in this book were checked at the time of publication. The author has no influence on the current and future designs and contents of the linked pages. The provider of the linked website alone is liable for illegal, incorrect or incomplete contents as well as for damages arising from the use or non-use of the information, not the person who refers to the respective publication via links. All external sources used are listed in the bibliography. Despite careful content control, we assume no liability for the contents of external sources. The operators of the quoted sources are solely responsible for their content. Images and sources from third parties are marked as such. The reproduction, processing, distribution and any kind of exploitation outside the limits of copyright require the written consent of the respective author or creator.

This book has been translated from German. Deviations from the original or translation errors cannot be completely ruled out. All sources linked in the book are available in English. We assume no liability for any content inaccuracies or misunderstandings that may have arisen through translation.

The data in the diagrams that are not explicitly marked with a source are not based on studies but are non-binding assumptions for better visualization.

This book was created using Artificial Intelligence (AI) and other tools. Among other things, tools were used for research, writing/editing, and generating decorative illustrations. Despite careful checking, errors cannot be completely ruled out. We would like to emphasize that the use of AI serves as a supporting tool to provide our readers with a high-quality and inspiring reading experience.

The references and quotations contained in this book have been carefully researched and reproduced in meaning. The interpretation and presentation of the quoted content reflects the author's understanding and does not necessarily correspond with the intention or opinion of the original authors. For paraphrased quotations, the core statements of the original sources have been incorporated into the context of this work to the best of knowledge and belief, but may deviate from the original wording and nuances of meaning due to transfer and simplification. All sources used are fully listed in the bibliography and can be read there in the original. The responsibility for the interpretation and contextual embedding of the quoted content lies with the author of this book. For scientific questions and detailed information, it is recommended to consult the original sources. The author has endeavored to present complex scientific matters in a generally understandable way. Simplifications and generalizations cannot be excluded. No guarantee can be given for the technical accuracy and completeness of the simplified presentations. The paraphrased reproduction of quotations and scientific findings is done conscientiously in compliance with citation law according to § 51 UrhG and all relevant copyright provisions of other countries. When simplifying, transferring, and possibly translating scientific content into generally understandable language, nuances of meaning and technical details may be lost. The author makes no claim to the rights of the quoted works and respects all copyrights of the original authors. Should unauthorized use be detected, the author requests notification to take appropriate measures. For academic purposes and when used as scientific reference, it is expressly recommended to refer to the original sources. The simplified presentation serves exclusively for popular science information.

Cryptocurrencies & Bitcoin: The Complete Guide to Crypto Trading and Mining

Bendis Saage

Cryptocurrency Trading & Mining: Bitcoin and Ethereum BasicsSimply Explained Guide to Crypto Trading, Crypto Mining and Building Wealth with Digital Assets - From Beginner to Crypto Millionaire

27 Sources 41 Diagrams 23 Images

© 2025 Saage Media GmbH

All rights reserved

Dear readers,

We sincerely thank you for choosing this book. With your choice, you have not only given us your trust but also a part of your valuable time. We truly appreciate that.

Cryptocurrencies & Bitcoin: The Complete Guide to Crypto Trading and Mining

This guide provides you with easy-to-understand and practical information on a complex topic. Thanks to self-developed digital tools that also use neural networks, we were able to conduct extensive research. The content has been optimally structured and developed up to the final version to provide you with a well-founded and easily accessible overview. The result: You get a comprehensive insight and benefit from clear explanations and illustrative examples. The visual design has also been optimized through this advanced method so that you can quickly grasp and use the information.

We strive for the highest accuracy but are grateful for any indication of possible errors. Visit our website to find the latest corrections and additions to this book. These will also be incorporated in future editions.

We hope you enjoy reading and discover new things! If you have any suggestions, criticism or questions, we look forward to your feedback. Only through active exchange with you, the readers, can future editions and works become even better. Stay curious!

Bendis Saage Saage Media GmbH - Team www.SaageBooks.com/[email protected]ße 7 - c/o SpinLab – The HHL Accelerator, 04179 Leipzig, Germany

Quick access to knowledge

To ensure an optimal reading experience, we would like to familiarize you with the key features of this book:Modular Structure: Each chapter is self-contained and can be read independently of the others.Thorough Research: All chapters are based on thorough research and are supported by scientific references. The data shown in the diagrams serves for better visualization and is based on assumptions, not on the data provided in the sources. A comprehensive list of sources and image credits can be found in the appendix.Clear Terminology: Underlined technical terms are explained in the glossary.Chapter Summaries: At the end of each chapter, you'll find concise summaries that give you an overview of the key points.Concrete Recommendations: Each subchapter concludes with a list of specific advice to help you put what you've learned into practice.
Additional bonus materials on our website

We plan to provide the following exclusive materials on our website:

Bonus content and additional chaptersA compact overall summaryAn audio drama version. (In planning)

The website is currently under construction.

www.SaageBooks.com/cryptocurrencies-bonus-2PNKDE

Table of Contents

1. Fundamentals of Cryptocurrencies1. 1 Technical FunctionalityBlockchain as a FoundationDecentralized NetworksDigital Wallets1. 2 Market MechanismsSupply and DemandPrice FormationMarket Capitalization1. 3 Security AspectsPrivate KeysTwo-Factor AuthenticationData Backup2. Crypto Trading2. 1 Trading StrategiesLong-Term InvestmentDay TradingPortfolio Diversification2. 2 ExchangesCentralized ExchangesDecentralized ExchangesDirect Trading2. 3 Risk ManagementLoss LimitationPosition SizingProfit Taking3. Crypto Mining3. 1 Mining MethodsSolo MiningMining PoolsCloud Mining3. 2 HardwareProcessorsGraphics CardsSpecialized Hardware3. 3 ProfitabilityEnergy CostsMaintenance CostsReturn Calculation4. Bitcoin and Ethereum4. 1 Network ComparisonTransaction SpeedEnergy ConsumptionScalability4. 2 ApplicationsPaymentsSmart ContractsDecentralized Applications4. 3 Development PotentialTechnical ImprovementsNetwork UpdatesProtocol Changes5. Wealth Building5. 1 Risk AssessmentMarket FluctuationsRegulatory RisksTechnical Risks5. 2 Asset ManagementDocumentationEmergency PlanningEstate PlanningSourcesImage Sources

1. Fundamentals of Cryptocurrencies

Have you ever wondered how a digital payment system can function without central control? The revolution of digital currencies is based on groundbreaking technological innovations that fundamentally change our conception of money. From blockchain technology to complex encryption methods, new possibilities for secure and transparent transactions are emerging. The mechanisms behind this system may initially seem complex, but they can be traced back to fundamental principles. In this chapter, we will decode step by step the fundamental concepts that make cryptocurrencies one of the most exciting developments of the digital age.

1. 1 Technical Functionality

Cryptocurrencies are based on complex technical mechanisms that ensure security, transparency, and decentralization. This chapter illuminates the fundamental workings of blockchain, decentralized networks, and digital wallets. It highlights the challenges and practical benefits of these technologies for the secure handling of cryptocurrencies. Understand the technical foundations and lay the groundwork for successful crypto trading and mining.

The private key of a wallet is like the password to your crypto assets and must be kept secret at all costs. The loss of the private key means the irrevocable loss of the associated assets.

Blockchain as a Foundation

The blockchain forms the backbone of cryptocurrencies like Bitcoin. It serves as a decentralized and public ledger that chronologically and immutably stores all transactions. Each new block in the chain contains a hash of the previous block, creating a seamless history. This chaining ensures the integrity of the system, as altering a block would change all subsequent hashes, making it immediately detectable. Decentralization means that the blockchain is not controlled by a single institution, such as a bank, but is distributed across many computers in the network. This enhances security and resilience against attacks or manipulations. Another important aspect is transparency. All transactions are publicly visible, yet without disclosing the identities of the parties involved. Instead, cryptographic keys are used, functioning like digital signatures to confirm the authenticity of transactions. This combination of decentralization, immutability, and transparency makes blockchain an innovative technology with diverse applications. It offers a high level of security and trust without the need for a central authority. Blockchain technology enables peer-to-peer transactions, meaning payments can be made directly between two parties without intermediaries like banks. This can reduce transaction costs and increase the speed of transfers. To understand how it works in detail, let us examine the process of transaction confirmation. When a transaction is initiated, it is first propagated through the network. Miners, specialized computers in the network, collect these transactions and group them into blocks. To add a block to the blockchain, miners must solve complex mathematical puzzles, a process known as "mining." The first miner to solve the puzzle adds the block to the blockchain and receives a reward in the form of cryptocurrency. This mechanism, known as "proof-of-work," secures the network and prevents fraudulent activities. The security of the blockchain is ensured through cryptographic methods. Each block contains a hash, a unique alphanumeric string that represents the content of the block. If even a single character in the block changes, the hash changes as well. The chaining of blocks through hashes ensures the integrity of the entire blockchain. Any attempt to manipulate a transaction would alter the hashes of all subsequent blocks and would be immediately detectable. Blockchain technology also offers the possibility to implement smart contracts. Smart contracts are self-executing contracts whose terms are directly written into code. Once the predefined conditions are met, the contract is automatically executed. This allows for the automation of complex processes and reduces the risk of fraud or human error. For example, smart contracts could be used in supply chain logistics to trigger automatic payments once a product has been delivered. The use of a blockchain can also improve the traceability of products. Every step in the supply chain can be documented in the blockchain, from production to sale. This enables transparent and tamper-proof tracking of products, which is particularly relevant for sensitive goods like food or pharmaceuticals. Customers could, for instance, scan a QR code to view the entire history of a product, from its origin to its current location. While blockchain technology is complex, understanding its fundamental principles is essential to grasp the workings of cryptocurrencies and their potential. The decentralization, immutability, and transparency of blockchain offer new opportunities for secure and efficient transactions and processes. The continuous development and application of this technology across various fields promise transformative changes in the future. When selecting a cryptocurrency or a blockchain-based application, pay attention to the underlying technology and the associated security aspects. Research the reputation of the developers and the community supporting the project.
Good to know
Cryptographic Keys Cryptographic keys are like digital passwords used to encrypt and decrypt information. In cryptocurrencies, they are used to authorize transactions and prove ownership. There are two types of keys: the private key, which must be kept secret, and the public key, which can be shared. Peer-to-Peer Transactions Peer-to-Peer transactions enable the direct exchange of value between two parties without intermediaries like banks. This leads to faster transactions and lower fees. The blockchain facilitates these transactions through the decentralized nature of the network. Proof-of-Work Proof-of-Work is a consensus mechanism used to ensure the integrity of the blockchain. Miners must expend computational power to solve complex mathematical problems before they can add a new block. This makes it extremely difficult and costly to manipulate the network. Smart Contracts Smart contracts are self-executing contracts stored on the blockchain. The terms of the contract are written in code and automatically executed once certain conditions are met. This enables secure and transparent automated agreements without intermediaries.
️ [i1]Mining
️ [i2]Peer-to-Peer transactions
Transaction Confirmation Time vs. Block Time
Illustrates the relationship between transaction confirmation time and block time.

This graph demonstrates how transaction confirmation times are influenced by block time. Shorter block times generally lead to faster confirmations, as transactions are included in blocks more frequently. However, other factors like network congestion and transaction fees can also play a role. The fluctuating nature of confirmation time, even with a consistent block time, highlights the dynamic nature of the blockchain network.

Decentralized Networks

Decentralized networks form the backbone of cryptocurrencies and fundamentally differ from traditional, centralized systems. Instead of a central authority, such as a bank, controlling and validating transactions, control in a decentralized network is distributed among many participants, known as nodes. These nodes are computers connected to each other over the internet, collectively operating the network. Each node stores a complete copy of the blockchain and contributes to the security and integrity of the system. This distributed architecture offers several advantages. It increases fault tolerance, as the network remains operational even if individual nodes fail. In contrast, the failure of a single server, as in a bank, can incapacitate the entire service. Decentralized networks are also more resistant to censorship and manipulation, as no single party has control over the network. A government or institution cannot simply block transactions or alter data. A decentralized network can be compared to a large, global accounting system managed by many independent auditors. Each auditor has access to all entries and can verify the accuracy of the transactions. This enhances transparency and trust in the system. Another aspect of decentralized networks is the way communication occurs between nodes. They communicate directly with each other, without a central intermediary. This peer-to-peer principle enables fast and efficient transactions, as no central authority slows down communication or imposes additional fees. Transactions are settled directly between the parties involved. You can think of it as a direct exchange of messages between two people, without a postal worker needing to deliver the message. However, decentralization also brings technical challenges. Coordination among the many independent nodes is complex and requires specialized protocols and algorithms. An important aspect is the consensus mechanism, which ensures that all nodes are synchronized and validate the same transactions. The proof-of-work mechanism used by Bitcoin is an example of such a consensus mechanism. It requires miners to solve complex computational tasks to add new blocks to the blockchain. This process secures the network and prevents manipulation. When selecting a cryptocurrency, it is advisable to inform yourself about the consensus mechanism used, as it influences the security and efficiency of the network. Pay attention to information regarding energy consumption, scalability, and the security of the chosen consensus mechanism. The architecture of a decentralized network also affects the speed and cost of transactions. Since each node must process every transaction, transaction speed can decrease under high network load. The fees incurred for a transaction depend on various factors, such as network load and transaction complexity. Before using a cryptocurrency, inform yourself about the average transaction times and costs to avoid unpleasant surprises. Compare the offered values of different cryptocurrencies to find the option that best suits your needs. Decentralization plays a crucial role in the security and independence of cryptocurrencies. It enables a transparent, censorship-resistant, and fault-tolerant financial system that is not controlled by any single entity. Understanding how decentralized networks function is essential to grasp the benefits and challenges of cryptocurrencies and to make informed decisions when selecting and using them. Thoroughly educate yourself about the various aspects of decentralization to optimally assess the opportunities and risks of this technology.
Good to know
Consensus Mechanism A consensus mechanism is a process by which nodes in a decentralized network agree on the current state of the blockchain. It ensures that all nodes validate the same transactions and add them to the blockchain. Peer-to-Peer Peer-to-Peer (P2P) refers to a network where all participants are equal and communicate directly with each other without a central server. In the context of cryptocurrencies, P2P enables direct transactions between users without intermediaries. Proof-of-Work Proof-of-Work (PoW) is a consensus mechanism in which miners must solve complex computational tasks to add new blocks to the blockchain and validate transactions. This process secures the network and prevents manipulation but requires a lot of energy. Scalability Scalability refers to the ability of a network to handle increasing transaction volumes without negatively impacting the speed and cost of transactions.
Decentralized Network Node Distribution
Node distribution by connection count and transaction volume.
Blasengröße: Latency (ms) Nd1: Node 01 Nd2: Node 02 Nd3: Node 03 Nd4: Node 04 Nd5: Node 05 Nd6: Node 06 Nd7: Node 07 Nd8: Node 08

The chart reveals a correlation between the number of connections a node has and the transaction volume it processes. Nodes with higher connection counts tend to handle significantly more transactions. However, some nodes with fewer connections still manage a substantial transaction load, suggesting strategic positioning or specialized roles within the network. This uneven distribution highlights the dynamic nature of decentralized networks and the varying contributions of individual nodes.

Digital Wallets

Digital wallets, often referred to as wallets, are essential for managing cryptocurrencies. They allow access to your digital assets and facilitate transactions. There are various types of wallets that differ in their security features and user-friendliness. Software wallets are programs installed on computers or smartphones. Hardware wallets