Mastering Bitcoin For Absolute Beginners E-Book

Raymond Kazuya

• Herausgeber: WS
• Kategorie: Wissenschaft und neue Technologien
• Sprache: Englisch
• Veröffentlichungsjahr: 2017

Seitenzahl: 138

Beschreibung

☆★☆The Ultimate  Guide To The World of Bitcoin  Technology is here! ☆★☆

This book will teach you the history, fundamentals, and real world applications of bitcoin cryptocurrency

 Tired of being cheated by the current system of  central banking? They are like rouge intermediaries with absolute control and hold all the power and can print money on a whim. How much longer can we allow this dysfunctional system of currency exchange to exist?

 This is the digital age and this new wave of currency will impact the lives of millions and even billions worldwide!

 Meaning  no more scandals from third party intermediaries who can print money out of thin air! No more centralized banks! But a unified and decentralized system that is transparent, distributed, and validated among EVERYONE.

If  you are wondering how can all this be possible? Than it is strongly recommended you grab your copy now and learn everything you need to know about bitcoin, whether you want to invest or understand the convoluted concepts of cyptocurrency in the most easy to read and detailed step by step guide in plain English!

What You'll Learn

 Benefits of Bitcoin

 History of Bitcoin

Real World Application

 Blockchain technology

 How mining works

 Estimating Trends

 Worldwide Influence On  Laws, Policies and Regulations For Bitcoin

 And, much,much more!

Not enough? Ok, well there's more... This book also includes bonus chapters and diagrams!

 Over 200+ pages of valuable content!

 How Does This Book Differ From The Rest?

 This book is truly set apart from the rest and is vastly superior. There's an entire section dedicated to blockchain technology as understanding the fundamental technology behind bitcoin is as equally as important itself.

Unlike other books this book does not skim over any details, but gives you the reader an enhanced experience of in depth information, so you can have a greater understanding of both bitcoin and blockchain technology.

What are you waiting for? Grab your copy now and join the next big wave of change and see the future!

 Imagine a world with no more physical currency or central authority figures that control the supply of money.

Leseprobe

Mastering Bitcoin For Absolute Beginners:

The Ultimate Guide To Bitcoin And The Future

© Healthy Pragmatic Solutions Inc. Copyright 2017 - All rights reserved.

The contents of this book may not be reproduced, duplicated or transmitted without direct written permission from the author.

Under no circumstances will any legal responsibility or blame be held against the publisher for any reparation, damages, or monetary loss due to the information herein, either directly or indirectly.

Legal Notice:

You cannot amend, distribute, sell, use, quote or paraphrase any part or the content within this book without the consent of the author.

Disclaimer Notice:

Please note the information contained within this document is for educational purposes only. No warranties of any kind are expressed or implied. Readers acknowledge that the author is not engaging in the rendering of legal, financial, medical or professional advice. Please consult a licensed professional before attempting any techniques outlined in this book.

By reading this document, the reader agrees that under no circumstances are is the author responsible for any losses, direct or indirect, which are incurred as a result of the use of information contained within this document, including, but not limited to, —errors, omissions, or inaccuracies.

Part I

Table of Contents

Introduction

Chapter 1: Blockchain, Bitcoin and Cryptocurrency Defined

Chapter 2: How Value is Traded and the Risks Involved

Chapter 3: How Values Fluctuate and How the Currency Attains Value

Chapter 4: How to Identify Trends in Bitcoin Price Charts

Chapter 5: How Bitcoin Mining Works

Chapter  6: Why does the Emergence of the Crypto Currency Anger the Government?

Conclusion

Part II

Table of Contents

Introduction

Chapter 1: Cryptography

Basic Principles of Cryptography

Different Cryptography Types

Chapter 2: Autonomy

Bitcoin Distributed Consensus

Chapter 3:  Practical UsesBusiness Case Studies

The Pros and Cons of the Blockchain Technology

Risks of the Blockchain

Chapter 4:  Blockchain Security Measures

The Hyperledger Project

Chapter 5: Bitcoin

Chapter 6:  How the Blockchain is Changing the World

Conclusion

Introduction

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The world of digital currency and how to trade and earn bitcoins can be confusing. This book is written in a way that will educate the reader and give them the information to make educated choices. It does not profess to make you a fortune in the new crypto currencies but, quite the opposite, it will arm you with the tools to enter the digital arena safely and knowledgeably.

The field of mining for bitcoin is explained in simple to follow terms, all the equipment you will need, the fees involved and the actual chances that you will be successful are laid out ready to be weighed up.

We will examine the means we have for analyzing the markets and the trends that are so important to spot if you are considering trading in digital currency. The volatility of the currency is explained and also the positive influences that can affect the price of bitcoin are considered carefully.

By understanding blockchain and the technological complexity of the protocol behind cryptocurrency, you can begin to appreciate the alternative uses for this revolutionary hardware and the way it is set to change society forever!

Does this worry the powers that be?? You bet it does. We look at the ways the currency terrifies government and shows us a future where the fate of our money will be in our hands only and not those of a third party.

Chapter 1: Blockchain, Bitcoin and Cryptocurrency Defined

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2008 was a troubled time. The Occupy Wall Street movement was at its strongest. Accusations of misusing clients’ money, misleading customers and charging hefty fees to do so were being leveled at major banks and other financial institutions. Pioneers of the new age of crypto currency saw a chance to put the seller in charge of his own money. By cutting out the middleman, they saw a way to make all transactions more transparent and eliminate interest fees and create a corruption free environment for all sellers.

By creating decentralized system two entities can trade directly with each other and know exactly what is happening with their funds.

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By examining the properties of bitcoin, we can begin to understand how innovative this new currency really is. Prior to 2008, the idea of an alternative currency was unheard of, since its original concept, bitcoin has progressed at a pace that is impressive to say the least.

Secure

: All funds are locked securely in a cryptography system that can only be accessed by a public key. The length of this number coupled with strong cryptography means that the chance of hacking or duplication is nonexistent. Your bitcoin address is as secure as Area 51!

Irreversible

: Nobody, and I mean nobody, can reverse a transaction. Once confirmed there is no way back. If you send money and confirm the transaction, then it has been paid and there is no reversing the process. Unfortunately, if you have sent funds to a source that is not completely legitimate, there is no safety net. As with other purchases, it is recommended that all transactions are examined thoroughly.

Global and speedy:

Due to the nature of the processing of bitcoins your actual physical location and that of the recipient are irrelevant. All trades are carried out by a network of computers and are therefore confirmed in minutes.

Anonymous

: Bitcoins are connected to accounts and addresses not people. Trades are conducted between accounts that are symbolized purely by chains of characters that are up to 30 symbols long. No identities are attached to these chains so while it is possible to follow the flow of the transaction, it is completely free from attachment to details of the parties involved.

Restriction free:

Who do you need to ask for permission to use bitcoin? No one at all! It is software that can be used for free by anyone anywhere. The lack of restriction and hierarchy is one of the properties of the new crypto currencies that appeals the most. By creating a new currency that is available to a set of people who may not have been allowed access to standard methods of banking and trading, it is paving the way for huge changes in society.

Bitcoin is free from government interference and is completely transparent. International trades can take place without involving exchange rates and the charges that accompanies them. The mathematical framework that supports the crypto currency system is unaffected by political pressure and human error. It is hard to see how the future cannot be changed by the emergence of this

new era of banking and trading and it has been said that bitcoin is to banks what email was to the postal industry.

Blockchain is the technology behind bitcoin and is being hailed as one of the greatest innovations of modern times. The technology allows both parties in a transaction to connect directly and removes the need for a third party.

The customer wishes to send money to the supplier, this is the transaction and details of the trade are now represented online in the form of a block.

The block is now broadcast to all parties in the network. Once approved the transaction is deemed valid.

The block that was created to represent this trade is now added to the chain and is used to record a permanent and transparent record.

The money agreed upon now moves from customer to supplier.

Blockchain is not only the technology that can allow the march forward of crypto currency, but it is also holds the potential to transform business, government and society as a whole. Intrigued?? Let’s examine how this new technological genie can affect human affairs for the better.

We are all aware of the Internet and how it has improved communication and collaboration. However it has done little to change how we conduct business. Intermediaries are needed to govern how we conduct transactions and exchanges of value. This generates fees, a fact we have all accepted in the past and paid, albeit grudgingly. However, the emergence of blockchain that allows data trading between billions of devices without a third-party involvement.

The Internet of everything is a term that is being used more freely as the digital age marches on but the emergence of blockchain means that we can create a ledger of everything! Imagine every smart device in use connecting and sharing information and trading freely with each other.

Every transaction and exchange of data will be recorded, indelibly and transparently. By acting as a ledger of all accounts it becomes the worlds database, societies notary and clearing house. The protocol of blockchain is what establishes the rules. Trust is hard coded into the platform that governs blockchain and ensues the integrity of all the data that is traded amongst the billions of devices that will use it.

Chapter 2: How Value is Traded and the Risks Involved

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Bitcoin trading is a new and highly exciting opportunity for both professionals and beginners. It is a new market, prone to highly fragmented and massive spreads. Cryptocurrency is appealing to new investors because its short history is littered with peaks and troughs.

Every time bitcoin has a “bubble “and increases in value, the media attention is such that interest is spiked and the value increases even more. Trading bitcoin is simple and global and provides an opportunity for investing to a whole new class of investors and speculators.

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Before we explore how to trade bitcoin we must first understand why it appeals to people. Below are a few points about crypto currency trading that make it exciting and unique.

●  Bitcoin trades 24/7

Standard stock markets open and close based on geographical location but as BTC is global and uses exchanges instead of markets it can be traded at any time. There is no official bitcoin exchange, which means there is no official price attached to the currency. Generally, most exchanges stay within the same range of value and this can lead to arbitrage opportunities which appeals to some traders.

Bitcoin is volatile

News events, statements by governments and other geopolitical factors can affect the value of cryptocurrencies. When the bankruptcy of Mt. Gox was reported in 2014 it appeared in headlines worldwide and drove the value of the currency down rapidly.

Similarly, the association with Silk Road and the negative press that followed impacted upon the value and saw huge drops in price.

It was subsequently argued by crypto friendly investors that this was a sign that the market was maturing and saw the price recover in the weeks that followed both news events.

●  Bitcoin is not a fiat currency

While the value of bitcoin is affected by world events, it has the benefit of existing outside the influence of any single country or economy. Standard currencies are directly related to the country or economy that governs it. However, cryptocurrencies are unique in their global pricing.

Now we have established the reasons for trading in bitcoin we need to explore how we choose an exchange as there is no official bitcoin exchange. A number of factors have to be taken into account when selecting which exchange is the best for your personal experience.

Location: If your first deposit is going to be in a fiat currency you must ensure that the exchange you choose accepts the currency you will be using.

Charges: Examine the fees that will be generated by your trade and compare with other exchanges. As this is relatively new field major differences in rates can be found across the board.

Liquidity: Depending on the volume of your trade you may need to explore the market depth of your chosen exchange. Large traders will need to ensure the liquidity of their chosen partner.

Taking into account these factors we can examine the exchanges that are currently dominating the market.

●  Coinbase

The first regulated exchange in the US Coinbase is a digital asset exchange, located in San Francisco it trades in bitcoin, Ethereum and lite coin and accepts fiat currencies from 32 different countries.

●  Bitstamp

Founded in 2011 it is one of the oldest exchanges dealing with bitcoin. Based in Luxembourg it trades USD for cryptocurrency and allows USD, EUR and bitcoin withdrawals and deposits.

●  Kraken

Currently the #1 exchange in EUR trading it is also a top 15 exchange when looking at USD volume. It has also considered to be the most secure exchange as its system has never been breached by hackers.

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Now we will use one of the exchanges above to explain how to trade bitcoin for the first time. We will use Kraken as the example, but the process is generally governed by the same principles across all exchanges.

Firstly, create an account by tapping the black box in the corner that indicates the sign-up process. You will receive an email that will allow you to confirm your account, once this is done you are required to log in and confirm all your personal information.

All bitcoin exchanges require differing levels of verification by law. The standard level of information means that you will have to supply your full name, date of birth, country of residence and phone number. Some exchanges may require further verification of your address.

Once you have followed these steps you will need to navigate to the “funding” tab. A screen will appear that will contain a selection of funding methods. Kraken offers many different options for your deposit including:

●  EUR Bank wire deposit: minimum $5 and only available in EEA countries

●  USD Bank wire deposit: $5 fee and only available in the US

●  JPY Bank deposit: no fees but there is a minimum of 5.000-yen deposit and available in Japan only

●  GBP SEPA and swift deposit: 10 pounds minimum and 19% fee

Deposits made involving the traditional banking methods will take up to three days to clear where as BTC requires six different confirmations and will be cleared in around an hour.

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Now navigate to the trade tab and by utilizing the black bar across the top of the page you can switch pairs for trading. Block A will display the amount of money in your account.

Block B will display the fee you will pay for the exchange.

Block C is where you can select the amount of coins you would like to purchase or how much money you wish to spend on your transaction.

Block D is the preferred price, default settings means the price available is set by the last deal.

Once you press the “submit” button your order will be processed and the coins will appear in your account literally minutes after you have pressed the tab.

We now know how to trade in bitcoin and use the exchanges to obtain cryptocurrency by exchanging our traditional monies for bitcoins.

We also need to be aware of the ever-growing ways we can obtain cryptocurrencies for, as demand increases, so do opportunities to purchase. E-Bay currently offer chances to buy the different currencies and other auction sites are cottoning on to the idea. By checking out local bitcoin opportunities in your area via Google or another search engine you can discover local bitcoin sellers and buyers and arrange to meet and trade coins.

Extra caution must be observed when dealing offline, only meet during daytime hours and make sure you are accompanied by a friend. Common sense precautions need to prevail when you are not shielded by the anonymity of the web!

As with all trading, there are a number of risks that need to be addressed and considered. Cryptocurrency is different from other currencies as it is regarded as a commodity. This has never been the case with traditional money and means that digital coinage are subject to market fluctuations as with any other commodity or stock.

Considering the age of this young and active commodity it can mean that the markets will dip and rise wildly. When investing in bitcoin it is generally a rule of thumb to take a “big picture” stance and refuse to be panicked by a drop in value.

Digital currency is encrypted to make them secure and here we can discover a potential failing with the commodity. The coding is designed to identify the actual currency but not the owner, hence the anonymity we have already covered. Nothing within the specifics identify the currency as yours, meaning that if it is taken fraudulently then it is gone! You have no recourse to reclaim what is yours.