All Posts By

Zachary Dash

Are We in a Crypto Crash, or a Crypto Correction?

By | Analysis

I woke up this morning to an ambush of text messages and alerts on my phone.

“China bans crypto, the end is near.”

“Is crypto, like… dead-dead?”

“I took out a loan to buy some Tron. How do I get a refund?”

For many of the individuals new to the crypto industry, the last few days might seem like Armageddon. Crypto coins falling out of the sky; howls of DOGE beyond the horizon.

For the seasoned vets out there, this is just another “correction” or bump in the road. Yeah, their portfolio might have taken a dip, but this is all part of the journey to building out the future of blockchain technology.

So who is right? Are we headed down a dark narrow path of no return, or is this simply a paper cut along the path to lambos and luxury. Let’s take a look.

2017 History of Crashes

To truly answer this question, I think we need to better define what a “crash” is.  If we define a crash as any sudden dip in the market, we see “crashes” nearly every few weeks in crypto. There is a very thin line between a crash and a correction; all revolving around timing and continuity.  I think the question we are really asking in these times; “Is this downward trend going to end, and if so, how long is it going to take to recover?”

The cryptosphere has seen its series of ups-and-downs in the last 10 years. To give true perspective of on where we currently stand in a macro view, I broke down 2017 week-by-week to look for similar trends and “crashes” along the way. Here were the results.

January 5-12, 2017

On January 5th of last year, the market started a 31% down trend from 21B to 14.5B. This seven day skid took 25 days to regain its 90% of its previous market cap and 42 days to get back to its previous all-time high.

May 24-27, 2017

On May 24th, the market started a 36% plunge from 91B to 68B. This three day skid took six days to get back to its previous all-time high.

September 8-15, 2017

On September 8th, the market started a 39% drop from 164.5B to 100B. This seven day skid took 27 days to get back to its previous all-time high.

December 21-22, 2017

On December 21st, the market took a quick 35% dive from 647B to 423B. This one day turn took six days to get back to its previous all time high.

 

Current Dip

Since January 8th, we have seen the market decrease by 36%.

 

Harness the Fear

Fear, uncertainty, and doubt (commonly labelled as FUD), is used a bit of an insult in the crypto community. Any time someone brings up even a small bit of information that the market might be a bit overvalued, they are HODL’d to death with memes and gifs of demise. While fear is definitely something that can hold us back from our true potential, we must also respect its purpose of protection.

Fear is what kept us from jumping off that two story building in 2nd grade because we were dared to do so. Fear is what kept our ancestors away from predators because, you know, they might eat us. Fear, inherently, is not a bad thing. It is when fear becomes illogical that we begin to restrict the opportunity ahead.

To truly answer the question, “are we in a crash or a correction”, you need to take a deep look into the mirror and figure out what you believe in. Is there opportunity ahead? Is blockchain technology truly revolutionary or just over-hyped jargon. Is the world going to have universal currency or will we stay the same?

I can’t answer these questions for you. But, if you take the time to figure out these answers for yourself, you will sleep much better at night knowing if you believe we are crashing, or simply going for a stroll.

Opus: Decentralized Spotify Brings Power Back to the Artists

By | Analysis, Blast

Overview

In a society built on music platforms like Spotify and iTunes, it is extremely hard for low & mid-level artists to make a living. Attempting to promote your music without going through these outlets is an uphill battle of marketing expenses and promotional expertise. Even if you are talented enough to make it big, these third party platforms sit as middle-man between you and your fans who want to support you. Opus is attempting to fix this by giving artists 100% of all revenue.

Investing Analysis

I was debating whether or not to add this coin to Altcoin Insider, as it was already mentioned on the Top 10 Altcoins of 2018 post I did a few weeks ago. That being said, after the recent dip in the crypto market brought the coin back down to $0.10, I still think this coin is incredibly undervalued.

OPT was sitting at $0.04 for a long time but went all the way up to $0.25 just five days ago. Despite the surge, I never once debated selling off for profits. This coin has just too much potential. If Opus is able to get just ONE major advisor or musical artist on-board, I find it hard to believe this coin will be worth anything less than $1-3. These are the type odds I like to play with.

With just 250M coins in existence, a simple $250 purchase right now could have you owning 1% of the entire market. That is huge. Most of my investments sit into two categories: Coins with stability and coins with upside. Opus definitely sits in the upside portion of my portfolio.

Music is a universal language that binds us all together. If Opus can connect this universal language with the universal currency of crypto, we are looking at huge numbers moving through 2018.

Technology

Opus is the world’s first decentralised music platform built on Ethereum and IPFS. While they are working on releasing the first platform in the coming months, they already have a pretty snazzy looking demo at: https://opus-foundation.org/demo/demo.html. Make sure to turn down your speakers, as it auto-plays with music.

Team

The COO and investor Mateusz Mach is a Forbes 30 Under 30 Winner. That’s a pretty good start for a team. You can view the rest of the Opus team by going: Here

 

Opus (OPT)

About: Decentralized Spotify Brings Power Back to the Artists

Exchanges: HitBTC, EtherDelta

Website: https://opus-foundation.org/

UTRUST (UTK) – PayPal of the Blockchain

By | Analysis, Blast

Wish I would have started this Altcoin Insider group just a few days ago before UTRUST really took off. I have been watching UTK ever since the ICO and invested around $0.57. While it is now up to $1.08 (#102), I truly see this company making it’s way into the top 50 coins in the not too distant future (1-3 Months).

In my Top 10 Coins of 2018 post, I wrote about a company called Verify (CRED) that is doing very well. While I still like Verify from an investment perspective, UTRUST is attacking the same problem with a team that is 10x the size and 10x the funding. They have a jump-start on the market, which is a huge advantage in today’s industry.

So what makes it special? It is solving a real problem; go figure. In today’s eCommerce industry, not only are crypto payments hard to accept because of volatility, but they are on untested waters. Asking someone to send you some Ether for your Nike shoes is almost as strange as asking for hotdogs at McDonalds. It just doesn’t work.

In 1998, sending money over the Internet seemed crazy, let alone doing it without a credit card. Fighting against fear and uncertainty, PayPal was able to overcome the most important and restricting barrier of all: trust. It was not the technology behind PayPay that made it into the behemoth it is today. It was the trust and level of comfort it gave people in doing something they had never done before.

To solve this same problem in the cryptosphere, UTRUST acts as a middle-man between buyer and seller to ensure a trusting transaction. The type that gives you the warm & fuzzies when you go to bed at night that your package will arrive; and even if it doesn’t, you have someone to talk to about it.

 

Yes, the point of the blockchain is to cut out middle-men. Yes, we are gradually building to that end goal. But until that time comes when robots can track down fraudulent sellers/buyers, we need a level of protection to bridge the gap between blockchain and eCommerce. UTRUST does just that. On the small chance UTRUST is the PayPal of the Blockchain, it’s worth the investment.

UTRUST (UTK) – $1.09 (3.04%)

About: PayPal of the blockchain, UTRUST is the payments platform of the future.

Industry: eCommerce

Exchanges: KuCoin, EtherDelta (Beware of Hacks)

Website: https://utrust.io

 

Cryptopocalypse – How the Bubble Will Burst

By | Analysis

On New Years Eve, I sat in front of my laptop at Starbucks with a major life decision ahead of me. Although I had been utterly consumed with crypto for months, there was still something holding me back. As a naturally risk-averse person, I have stayed away from uncertainty my whole life. No blackjack. No sky diving. No mystery meat from the lunch room.

Remembering the days of putting every penny of my $10/hr in savings truly humbles your perspective of time and money. From a young age, I have valued time more than anything in the world; and that is exactly what money provides. Time. Although I could see the potential ahead clear as day, I struggled with pulling the trigger on investing more. Getting married in six months time and starting my “adult” life didn’t make the decision any easier.

Ten minutes before midnight, I followed my heart into the crypto abyss. While still a very small investment compared to others, I knew I had to get more serious than ever about being smart with this asset. How can I protect it? What is the road ahead? If the crpyto bubble does pop, how can I avoid the downfall?

 

The Dark Side

The most common thing people talk about in the crypto community is hope and opportunity, with the not-so occasional coin shilling in the middle. And rightfully so. The charts look like hockey sticks, the numbers are green, and people are already planning out which color lambo they are going to buy. But, what happens when all that stops?

The goal of this article is not to cause fear, uncertainty or doubt. It is to empower you to understand no matter what the market does; you control your own destiny. It is created to ask questions that nobody wants to talk about. It is written with the hope of helping you figure out an exit plan to save your bank account (and possibly marriage).

If the crypto bubble were to pop, what would it look like? What would be the causes? What would be the aftermath? These are absolutely critical questions we have to figure out. Let’s dive in.

 

Three things that cause bubbles to form

To figure out what would cause the crypto bubble to pop, we must first look at what caused the bubble to grow in the first place. As a frame of reference throughout the article, we will be comparing the dot com bubble for its similarities and tech connection.

Between 1990 and 1997, the percentage of households in the United States owning computers increased from 15% to 35% and the Information Age was born. As a result of the rapidly-increasing usage of the Internet, many investors were eager to invest, at any valuation, in any company that had one of the Internet-related prefixes or a “.com” suffix in its name, leading to a stock market bubble.

The value of the Nasdaq Composite stock market index, which includes many technology companies, rose from 1,000 in 1995 to 5,000 in the year 2000. At the height of the boom, it was possible for a promising dot-com company to become a public company via an initial public offering and raise a substantial amount of money even though it had never made a profit—or, in some cases, realized any material revenue whatsoever.

It seems so obvious and silly in retrospect. But is this really any different than what is happening today? In current crypto economics, a team of three people with a fancy worded white paper is capable of raising hundreds of millions of dollars; in a matter of minutes no less. This ability to jump over the long IPO process has caused growth rates that far exceeds the growth of the dot-com era.

In retrospect, it is easy to see why the dot com bubble occurred. Overvalued companies and inflated expectations. While hindsight is always 20/20, there are some very common characteristics we can see to better help us detect future collapses.

1) Assumptions of market growth

2) Excitement of potential value

3) Expectation of investment opportunity

 

As soon as these assumptions, excitement and expectations have met their match, the cookie crumbles and the true value of a company is left over. Now let’s see how this fits into crypto.

 

Three things that could cause the crypto collapse

There are many assumptions currently being made in crypto community:

  • Crypto is young in its infancy with a lot of market growth ahead
  • Crypto has new blockchain technology that far outperforms all other technologies
  • Crypto is only going up so it is a great investment opportunity

At of the time of writing this article, all of these statements seem to be pretty obvious and plausible. Now, let’s look at the three possible ways these assumptions could be turned upside down.

1) Government Regulation

The first reason is probably the most obvious: government regulation. While crypto currency was created to inherently avoid the involvement in government, there are still many years of uncertainty ahead of us.

On December 5th of 2013, the People’s Bank of China announced that Bitcoin was prohibited for Chinese financial banks to operate using bitcoins. The value of bitcoin dropped 11-20%, before eventually rebounding to higher growth.

Specifically in America, there is a lot possible scenarios in which Trump comes down hard on regulation. As the president is already at odds with many in the tech community, and implemented tax laws on crypto currency, we can only speculate on what is ahead.

Trump acts swiftly on things he wants to doesn’t like, as we saw in the illegal immigration . We can only hope his twitter beef with North Korean dictators keeps his attention away long enough to not push the red button on crypto law.

2) Unmotivated Money

In traditional economics, companies must first provide value before being rewarded. When you wanted to make $5 as a kid, you offered to wash your parent’s car. When you wanted to make $10/hr as teenager, you flipped burgers. When you wanted to build a billion dollar company that went public, you built a sustainable business with revenue and achievements (unless you’re snapchat of course).

All of this logic is thrown on its head in crypto. Money comes first, with the promise value in the future. Will people be more or less motivated without the need to produce? Will this cause teams to move and grow faster, or become lethargic and uninterested? This remains to be seen, but, the first signs of this new crowdfunding method to not work from a psychological perspective, the bubble will begin to pop.

3) Ethereum Drop

Yes, as of now, Bitcoin is still the king, and could be for many years to come. However, this does not mean it has the most control over the market. If Ethereum were to tank, it would cause a nasty spiral of events. Let’s look at why.

Ethereum, a blockchain based technology, has over one hundred other coins built on top of it. In addition to this, many of the magical million dollar ICO’s were funded with Ether, the primary currency of Ethereum. While many of the companies are hopefully smart enough to diversify their funding, it is safe to say that a majority of the assets that these companies are running off of are powered by Ether. Ether is how they pay employees. Ether is how they liquidate their investments. Ether is the heartbeat.

If Ethereum were to take a downturn, these companies would have less money to invest. Less money to invest leads to less runway for creation. Less runway for creation means more companies going out of business. More companies going out of business means fear in the market. Fear in the market means crash. This situation scares me more than government.

 

Three things to best protect yourself if the market does crash

Looking back at the dot-com bubble for reference, the total market dropped 78% and took 2.5 years to truly hit its bottom. While it has since recovered, millions of people lost millions of dollars in the process. Attempting to compare the rate and amount of the dot-com to the crypto era is extremely difficult.

While it took 3 years for the NASDAQ to triple in price, the crypto market has managed to achieve the same feat in 38 days.

Yes, you read that correctly. From November 30th to January 7th, the market has tripled in value from $277B to $819B. The cryptosphere is growing at an astronomical rate. Here are the three things you can do to help protect yourself against an astronomical collapse.

1) Tether

While the ideal situation to protect yourself would be to pull your money out into fiat cash, we all know the headaches and pains of transfer times, fees, and congestion during major market events. To counter this, a company called Tether has created a coin that never fluctuations in value, always staying at $1 USD.

The last thing you want to happen is to be at work when such an event could take place. Imagine being in a meeting with Mr. Bob, assistant to the regional manager, and watching helplessly as the numbers drop.  By putting simple stop-losses to exchange your crypto currency to fiat at certain incremental drops, you are mitigating risk and may sleep better at night. Figure out your risk tolerance level (10-25-50%) and Tether your coins.

One major disclaimer. There has been speculation on the amount of money Tether has in its reserve. For whatever reason, if everyone tried to pull their money out at the same time, we are not certain of the outcome. Use Tether at your own risk and do your own research before putting your life savings into it.

2) Alerts

The easiest thing you can do right now to be prepared is to be alert. There are multiple mobile apps out there that allow you to set alert notifications on your phone. While this can be a double edged sword in term of consuming yourself with every little bump and hiccup, by putting in major percent changes could save you. The current best mobile apps for this purpose are:

Blockfolio

Coindesk

CoinWink

3) Champions

During the dot-com bubble, even the giants were wounded. Google, eBay, Amazon, Ciscso, just to name a few, saw the valuations crumble overnight. In crypto, there is a lot of fluff. A lot of fluff. If only half of the major companies made it out of the dot-com bubble, the amount of crypto companies to make it out is going to be even lower.

There are currently over 1300 coins to trade according to CoinMarketCap. Only a handful of these actually have a product. Only a handful of those actually have a use case. Only a handful of those use cases are profitable. As 1 in 10 startups survive more than five years, many are speculating that as many as 99% of these coins will not exists in five years time.

All of this being said, by choosing companies with true, long lasting, impactfuk technology, a bubble popping is only a temporary dip. Since the crash, all of these giants have recovered and far surpassed previous valuations.

Do your research on your coin. Is it needed? Or is it just good marketing. Can you see it having real world utility? Or did they just throw the blockchain into an already existing idea. These are things you need to think about that will ultimately protect you from years of regret.

 

Conclusion

 

“A friend of mine has a great line. He says ‘Nothing important has ever been built without irrational exuberance’. Meaning that you need some of this mania to cause investors to open up their pocketbooks and finance the building of the railroads or the automobile or aerospace industry or whatever. And in this case, much of the capital invested was lost, but also much of it was invested in a very high throughput backbone for the Internet, and lots of software that works, and databases and server structure. All that stuff has allowed what we have today, which has changed all our lives… that’s what all this speculative mania built”. – Venture capitalist Fred Wilson

 

Intro to Crypto – Absolute Beginners Guide to Investing and Trading Crypto Currency

By | Tutorials

Introduction

When I first heard about crypto currency a few years ago, I had some very mixed reactions:

“Is this actual money? Or just monopoly money”

“Wait, someone became a millionaire off this?”

“Is this a fad? Please, be a fad”

Fast forward to today, I am more excited than ever about the opportunity ahead for the crypto currency industry. In the last few years, we have seen the rise of Bitcoin billionaires, Cryptokitties, and Dogecoin enthusiasts. Whatever the next decade looks like, I wanted to make this series as a way of giving back to a community that has fundamentally changed the financial opportunity for millions around the world. As true understanding of this industry grows, more people will get involved, and our ability to build out a better decentralized future will increase.

You might listen to this series because your friend at work won’t stop talking about it. Maybe, it’s because you missed the boat on Bitcoin and are looking for the next explosion. Whatever it is you want to learn, we have broken this series up into ten sections that focus on the most common questions and obstacles people have when starting. Feel free to skip around and find what is most valuable for you and your current stage of the cryptosphere. If you still have questions, or want to get more involved with this growing industry, I encourage you to join our live chat community. On here, we answer questions, discuss trends, debate coins, and share all the latest crypto news.

Feel free to skip to a certain section by clicking on the links in the side menu. In our first section, we will discuss what crypto currency actually is. Let’s dive in.

What is Crypto Currency?

By | Tutorials

What is crypto currency? Seems like such a simple question, but answering it is not a simple task. Especially if I am talking to my mother, sorry mom. The most common response I get when asking people about crypto: “You mean that bitcoin thing?”. While bitcoin is inherently a crypto currency, not all crypto currencies are bitcoin. Just like in the physical world, there are multiple forms of currency, from the USD and Peso, to the Yen and Euro. Bitcoin just so happens to be the most well known crypto currency at this time, but there are many others.

If you are confused about the world of crypto currency, you are not alone. Let’s dive into figuring it out.

Currency

This could be an entire series in itself, but a very common question: “Is crypto real money?”. To truly understand what money is, we have to accept and understand one major concept: money is an illusion. In today’s society, we have multiple people – mutually agreeing that a piece of paper – with a fancy picture of a president – the numbers “two, zero” on it – in the shape of a rectangle – is worth a tank of gas. It’s not crazy that we do this, but the value behind that piece of paper is a complete illusion.

There are only two things that must be true for something to be used as money. First, two people have to mutually agree it has a value. Second, there has to be something to transfer; like food, paper, or utilities.

In the case of crypto currency, millions of people have mutually agreed it has value, and we transfer ownership to one another as payment. Without this foundation, the idea of digital, cryptographic, monopoly money universe is extremely difficult to comprehend.

Crypto

I think most people can understand the basic concept of what a currency is, but what is with this word crypto? Seems like some made up word from the Da Vinci Code or Legends of the Lost Temple.

By definition, “Crypto” (short for cryptographic) is anything written in a secret code or cipher. Thanks Webster. When we put these two words together, we can now understand that crypto currency is simply: money hidden behind a layer of code.

Conclusion

So why does there need to be a code? Why can’t we just use credit cards and cash? There are still a lot of unanswered questions here to get a full understanding of crypto and all its glory.  In the next lesson, we will answer the question, how does crypto actually work?

How does Crypto Currency work?

By | Tutorials

Disclaimer, there are tons of videos online to give you a technical explanation for how crypto currency works. This section is focused on giving one simple analogy to get your feet wet.

Currently, when you want to send money to your uncle in North Dakota (does anyone really live in North Dakota?), you are probably going to use a third party to accomplish the task. One way you could do this is by transferring some money on paypal. If you are lucky enough to have the same bank, you might wire him the money. If you are feeling super paranoid, you could even attach some cash to a carrier pigeon and hope he makes it there in time for winter. In all these examples, whether you use Paypal, Chase Bank, or a carrier pigeon, you are putting your trust in another person/entity to successfully transfer your money. This, is what crypto currency changes. There is no middle man, and this is why it became so popular. Initially at least.

Analogy

So how is this possible? Again, there are many more resources if you truly want to understand how this is technically possible. For now, we will use a simple classroom analogy to explain.

Imagine a room of 10 people; all with an imaginary $10. Everyone knows the rules of this room and how much money everyone else has. When Person A wants to send their imaginary money to Person B, they simply say it out loud. “I, Person A, am sending $5 to Person B”. The entire room hears what just happened and writes it down. When Person C wants to send money to Person D, they follow this same process. Announce their transaction, and everyone writes it down. At any time, we can ask the room how much money Person X has, and the room, as a whole should be able to tell you the correct amount. There is no teacher in the middle. There is no principle in the lobby. Everyone has an equal voice and relies on the trust of the group to come to a consensus of what is right.

But what if one the kids decides to be Mr. Krabs and gets greedy. He flubs his numbers on purpose to put a few extra dollars in his pocket. While he claims to have $13, the room can easily see this is incorrect, and throws out his response.

But, what if Mr. Krabs gets a few of his friends to gang up and corrupt the group? The most powerful thing about crypto is the network affect. While it may have been possible for Mr. Krabs to corrupt the group in the early stages, the classroom has now grown to over 100,000 people. For Mr. Krabs to truly make a difference, he would need to convince 50,001 people to corrupt the group. Not an easy task. The larger the class grows, the harder it is to corrupt.

Conclusion

This is a simple, yet effective analogy of how crypto currency works. While it’s a cool concept, in the next section we will jump into why crypto is becoming so popular.

Why is crypto becoming so popular?

By | Tutorials

So why is crypto currency becoming so popular? Telling people you are into crypto currency has become the new standard of telling people about your vegan-ness or personal crossfit records. To be honest, I might be guilty of this myself. Sorry Alex (my fiancée). To explain why crypto is becoming so popular, I must break down the popularity into two eras. We will call the first era the Sitoshi Era, which started in 2018, and the second era the FOMO Era, which started in 2016.

Sitoshi Era (2008-2015)

In 2008, the world was hit with the worst financial crisis of this century. But what caused this? Well, that’s a bit of a long story. But to keep it short, here is a quick summary of the disaster.

People wanted to keep their money safe, so they put it in banks.

Banks wanted to make money, so they took our money and gave it out as loans.

These loans, were not good loans, and people did not pay them back.

The banks declared for bankruptcy and the government stepped in to bail them out.

The Government used our tax money to pay off the money that the banks lost.

This makes people mad and not trust central authorities.

As a response, a mythical unknown person named Sitoshi Nakamoto published a white paper that described an alternative, decentralized solution to fix this problem. Thus, Bitcoin was created. Great things usually come out of desperate situations. It is not until something is broken until we realize it needs to be fixed; or better yet, a new way to being created. While it is still a mystery on what the early years of bitcoin was used for, many believe the popularity arose by the ability to do illegal things. Because there was no central authority or bank, it was a much better method for criminals to transfer money across the internet.

FOMO Era (2016-Present)

Fast forward 9 years, and we are currently in the FOMO era (Fear of Missing Out). While the principles of a decentralized economy are still a driving force, many people believe that the recent crypto boom is caused by people wanting to make money (not just as a tool for transfer).

In December 2011, you could buy bitcoin for $2. In closing up 2017, bitcoin is worth roughly $20,000. To put that in perspective, if you purchased $100 worth of bitcoin in 2011, today it would be worth $1,000,000.

The recent boom is caused by a lot of things. Social media, speculation, fear of missing out. This is one of the main reasons people believe we could be creating another bubble similar to the dot com bubble of 1999. Regardless of your outlook on the future, crypto currency is growing at a pace this world has never seen.

In our next section we will learn how to make (or lose) money with crypto.

How do you make (or lose) money from crypto?

By | Tutorials

Another disclaimer. I am no financial expert. I barely know how to fold my laundry properly, let alone advise you what to do with your hard earned money. All I can do is share with you my personal experience and what has/has not worked for me so far.

Trade

So, there seems to be two main ways people are making money from crypto. The first way to make money from crypto is by trading coins. Similar to those old 90’s movies where you see a lot of guys in ties on Wall Street yelling at numbers on a wall going up and down, you now have the ability to jump in on the high anxiety adventure. A coin is worth $1. You buy it. The value goes up to $2. You sell it. You just made a profit. These prices fluctuate based on news, rumors, hype, or sometimes just to hurt your feelings.

I must say, this is how I started with crypto, and it utterly consumed me. To make money in day trading you must be alert, consistent, and able to control your emotions. Even with all these qualities, it’s not uncommon to lose money, so do this at your own risk. I made a rule of only putting 10% of my net worth into the game (it’s very much a game), so I slept a little better at night. While it is up to you to choose your own level of risk tolerance, this 10% rule of thumb is a pretty common one from a lot of smarter people in the industry than me.

HODL

The second way to make money is a little more boring, but in my opinion, less risky: Holding On for Dear Life, or as the cool kids say it HODL’ing. With this strategy, you simply buy a coin, and hope over time, the value of the coin goes up. Similar to bitcoin, there are new coins being created every day. Any coin that is not Bitcoin has been given the name “Altcoin”. This simply implies it is an alternative coin. Warning: It is so easy to make a coin these days that MOST of these (more than 90%) will never be worth anything and have no real value. That being said, there are some coins with some really useful technology behind them that you could capitalize on.

Side note, I give some in depth analysis on which coins have potential and the technology behind them. Visit www.altcoinatlas.com/coins if you want to check that out.

Conclusion

In my current investing process, I HODL. I simply believe in the industry as a whole more than my ability to play the game of trading. It’s also a lot less stressful. I hope you take this insight and come up with your own style of investing. In the next section we will cover where exactly you go to buy and trade these crypto coins.

Where do you buy crypto currency?

By | Tutorials

Ah, the first day of buying crypto. To some it feels like the first day of spring training. To others, its Christmas morning. Whatever your feeling is, let’s figure out where the best places are to buy crypto.

There are a few websites popping up that allow you to exchange fiat (or cash) for crypto, but they are so new and untested, the only website I feel comfortable and reliable enough to note at this time is coinbase.com. To get an updated list and review of where else you can buy, go to altcoinatlas.com/buy. The rest of the walk-through below will focus on the coinbase interface, but this process is very similar to the other websites.

Coinbase

According to the Coinbase website, all digital transactions are fully insured, and cash is covered up to $250,000 (fiat). That sure makes it a little less scary. The first thing you must do is identify yourself. While the world of crypto originally started with criminal activity, crypto exchanges are required to take a bit of precautionary screening to keep the integrity of their platform. After you go through their identity process, you can use a credit card or bank account to buy crypto. Be aware, sometimes this transfer process can take from a few hours to 7 days, depending on your method of exchange and the congestion of the network.

Currently, Coinbase is only selling three coins (Bitcoin, Ethereum, and Litecoin), but have recently announced they will be including many altcoins in the near future. This is an exciting time for the crypto community as currently; the only way to attain these altcoins is through trading, not buying directly.

Keys

Once your transaction goes through, three things will be created for you. First, a wallet. This is where your coins are being stored. We will talk more about this in the next section. Inside this wallet you have a private key and a public key. These are important, so listen up.

Think of the public key as your public phone number. You are open to giving this out to anyone and everyone you want. In our situation, anytime we want to send or receive money, we use this public key. Its your fingerprint on the crypto universe.

Think of the private key as the super secret code you use to open your phone. Don’t give this out to anyone. If they know this code, they will have access to all your crypto treasure.

Conclusion

 With any investment, the next step should be making sure you keep this coin safe, and secure. In the next section, we will discover what a wallet is, and the best practices for keeping your newfound coin safe and secure.