Kitabı oku: «The Book about Cryptocurrency №1. Second edition expanded», sayfa 3
Is it easy to work on the cryptocurrency market?
The purpose of this book is to tell beginners about the crypto market and show that anyone can earn money in crypto. You don’t need to have any special education for this, you don’t need to buy a super-powerful computer for this.
You don’t need a lot of money to start working with cryptocurrency. Your first investment can start from 100 dollars.
Judging by these criteria, yes, it is easy to work on the market.
If you come just to play and then, after losing money, come out disappointed.
However, there can be another way. It is easy to work on the market, but you need to be patient and invest your time in learning and studying the rules of the game.
But first, decide: for what purposes do you need cryptocurrency, what do you plan to do on the market? In general, it is useful to define your goals every time you plan something new in your life.
What can be the goals when working with crypto?
The goal is to save your own funds. To save them from inflation and denomination by the state. To do this, you can make a portfolio of the top 5 leading cryptocurrencies and not worry when bitcoin suddenly goes down.
The goal is to make a quick buck on cryptocurrency. This goal is both realistic and quite risky. Why? The market is alive, it has high volatility, the situation on it can change in a matter of hours, for this you need to constantly keep your hand on the pulse and review the portfolio of coins every day. One should also know the mathematical laws, according to which one should invest in a particular currency. The chances that a particular coin will take off a few dozen times are small. It’s like winning the lottery. Will you be lucky or unlucky? We answer: the lucky one is the one who enters the market professionally and makes a portfolio professionally. In this case «quickly» can be from half a year to a year. Not a month, for example, as some inexperienced hamsters dream about it.
The goal is to become a trader and manage other people’s portfolios. This is an excellent goal, it allows you not to spend your own money, but to take other people’s assets under management at once. However, before going into consulting and portfolio management, you need experience and successful cases.
Goals may change, and that’s okay. You may want to become a trader, realize that it is not for you, but leave some assets in bitcoins and ethers just in case. Or you will enter the market cautiously to have a look around, but in time you will get involved and learn a new profession.
They say that to become an ace, a pilot needs to fly an airplane for 10,000 hours. It may take less time to become an ace at cryptocurrencies, but at a minimum, it will take you a few weeks or even months to begin to understand market movements, keep your finger on the pulse, and see how media reports and tweets can move the market.
Your advantage over where we were three years ago is that you will gain a lot of knowledge many times faster than we did. Good luck!
Where can I find information on cryptocurrencies fast?
Do you want to be a successful crypto trader and react quickly to all market movements?
The first and most important skill you should acquire when working with cryptocurrency is the skill of working with information.
To work with information is to be able to search, analyze, study and record everything that is related directly or indirectly to your topic.
It is also the ability to check the information you see for validity.
The criteria important for evaluating any incoming information are: credibility, timeliness, and reliability of the source.
In the world of crypto-money, decisions need to be made quickly, and there are times when the situation with coin rates changes in a matter of hours. One careless tweet can both help a coin to take off and drop it.
!Our advice! Follow the official Twitter accounts for each cryptocurrency. Do not wait for this information to be processed by the media, translated into Russian and disseminated.
Where to get data on official websites, Twitter accounts and other important news?
First of all, we recommend that you bookmark https://coinmarketcap.com/
This is a portal that accumulates all the information on the existing cryptocurrencies in the world.
Here you can see in dynamics, at what rate coins are offered, how many coins are actually on the market now, on which exchanges they are traded.
The site is convenient because there is a Russian version, it has a clear interface, and for each coin you can get comprehensive information: cost, dynamics, links to official sites, Twitter, etc.
Official sites for the most popular coins:
Bitcoin – https://bitcoin.org/ru/.
Ethereum – https://www.ethereum.org/.
Cryptocurrency forum – https://bitcointalk.org/.
Pro Blockchain Media Project
YouTube – http://www.youtube.com/c/PROBLOCKCHAIN
Website – https://pro-blockchain.com/
Telegram – https://t.me/Pro_Blockchain
VK – https://vk.com/problockchain
Twitter – https://twitter.com/PRO_BLOCKCHAIN
Important: To avoid phishing attacks, pay attention to the spelling of the site name and whether it has an SSL certificate.
First steps in the world of cryptocurrencies
1. Creating an email on Google
If you are young enough, used to communicate via social networks and messengers and consider email something archaic and old-school, you will still need it when mastering Blockchain.
The best way to create an e-mail account is to use Google. You should not use mail.ru, yandex.ru and other portals.
Mail with the domain gmail.com is the safest today. You’d better register a new box, separate from other tasks, only for working with crypto.
2. Create a strong password
To create a password, it is best to use a password generator.
For example, the service: http://www.onlinepasswordgenerator.ru/.
Here you can set the password parameters: number of characters, lowercase, uppercase letters, etc.
Clicking the «Generate» button will give you a choice of 10 strong passwords that are difficult to crack.
More password generator options:
https://randstuff.ru/password/
Choose any of them and remember security at all times.
Save the generated password in a safe place. Periodically change the password on your mailbox.
It is desirable to use different passwords for different services.
3. Installing Google Authenticator
This is a special application that you put on your phone – «Android» or iOS, it is tied directly to your account, it can be tied to the exchange, mail, other services related to cryptocurrency, and so on.
You should definitely use it! It will be an additional protection of your mail and further access to those passwords that you have.
Using it is very simple.
In the settings of your gmail.com mail in the section «Accounts and Import» – «Change Settings» – «Password Recovery» there will be a tab «Two-step authentication». You select the Google tab. Then you’ll have a QR code, you scan it with your phone and a pre-downloaded app.
The program generates a new code every 30 seconds, so you’ll have to enter your username, password, and this code when you log into your email. It’s somewhat similar to two-factor authentication via SMS passwords, only in this case you get a second password through the Google app.
You can have multiple passwords here: for different exchanges, email, different wallets, etc.
This is an extremely useful thing that you should definitely take advantage of.
Don’t neglect your own security, otherwise you will lose your own or, even worse, someone else’s assets in an instant.
Part 2.
Crypto wallets
When man invented money as an equivalent of goods and services, at first it was simply kept in pockets, then wallets, sacks, chests, kegs and other containers appeared.
But, as you can see for yourself, gold coins or bills can be in circulation by themselves. Digital money, which in reality cannot be touched or tasted, cannot exist without wallets.
Basically, what is a digital wallet? It is a program or an encrypted and secure record of your account.
The program can be installed on your computer’s hard drive or on your smartphone. To conduct transactions, the program on the Bloxxhain network confirms its legitimacy and enters the transaction data into a registry.
We have already on the pages of this book talked about security and all the precautions you need to take when working with cryptocurrency.
Remember that the principle «don’t put all your eggs in one basket» is more relevant here than ever. It is desirable to distribute all your digital assets in different wallets, as force majeure, hackers’ attacks, your inattention can significantly empty your cryptocurrency account if it exists only in one place and only bitcoins are stored on it.
Where is cryptocurrency stored? Or the main types of wallets
According to the method of communication with the Blockchain system, wallets are divided into hot wallets (hot storage) and cold wallets (cold storage).
A hot wallet is usually downloaded to a computer or mobile device. These programs maintain a constant connection with the system, which allows all transactions to be carried out quickly. When there is no heavy load on the network, then even at the basic tariff (minimum commission to miners), the money goes a few minutes.
This type of wallet is vulnerable to hackers. Therefore, do not forget about security techniques, which you have already familiarized yourself with in the previous chapter.
This is a complex password, two-factor authentication and a 12-word code that you should memorize and keep in a safe place.
Remember: if you forget the code, you will lose all your savings on this wallet irrevocably.
In contrast to the hot wallet – cold wallet (cold wallet), due to the lack of constant connection with the network is better protected from hackers. This type of wallet is more suitable for storing savings. It is necessary to keep the key for access to the wallet on a separate carrier, which helps to avoid hacking.
A cold wallet is usually a piece of paper with keys printed on it – public and private.
The public key is the address to which you can send money. It looks like a set of symbols or a QR code. But you also have a private key, which allows you to withdraw money from your wallet.
Just in case we repeat once again: wallet keys should be guarded like the apple of your eye, because it will be impossible to recover them later.
By the way, according to various estimates, about 20% of keys are lost in the world now. Thus, the currency stored in wallets with lost keys is blocked. There is no access to it. This situation creates some scarcity (and you and I remember that the number of bitcoins is finite) and the ability to keep bitcoin at a fairly high level in terms of price.
Hardware wallets
Hardware wallets are compact gadgets for storing cryptocurrencies. A high degree of security is achieved due to the fact that private access keys are stored encrypted on this device. Several levels of protection, including pin code, make it as reliable as a safe in a Swiss bank.
The most popular hardware wallets are Ledger Nano, Trezor.
Let’s dwell on them in detail.
Trezor is used to store bitcoin. When installing the wallet, it will offer you a unique 24-word security key. It must be written down. If you lose the key, it will be impossible to access your funds.
In addition, Trezor offers to come up with a pin code. Pin-code is created without connecting to the Internet, so no one can intercept this password.
Be careful when entering the pin-code. Each mistake freezes the wallet, and the more you make mistakes, the longer the blocking is activated.
Another level of protection is a keyword. The same word will be requested when restoring the wallet after loss or breakage. Without the keyword there will be no access to the wallet.
The wallet has a display that shows where the money is sent. And to confirm each action you need to press the buttons, which eliminates the possibility of hacking it.
Another family of hardware wallets is Ledger.
They are not inferior to Trezor in the level of protection, quality of work. There are versions of wallets with and without displays.
Ledger Nano S is a model with a display. It also has two confirmation buttons that require physical pressing (which, like Trezor wallet, protects from malware attacks). To open the wallet, you also need to come up with a four-digit pin code. There is also a code phrase of 24 words, which will be requested when trying to make a transaction from the wallet. It is important to remember that if you enter the pin code incorrectly three times, the wallet is blocked.
So, the market offers a lot of hardware wallets, and their prices are quite affordable. You can try any wallet that seems reliable to you. The main thing is to remember about security! If you order a wallet on the Internet, make sure that it came whole, not opened. There are known cases when attackers put malware on the gadget, which then «took» money from the account.
Hardware wallets are needed mainly for long-term storage of cryptocurrencies.
Cryptocurrency exchanges
In the world today there is a huge number of exchanges that trade in cryptocurrencies. What is the convenience of the exchange? All work is done online through a browser, there is no need to use a hardware wallet or wallet in the form of an application.
Cryptocurrency exchanges typically support a wide range of cryptocurrencies, including popular cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), as well as many other altcoins.
Exchanges offer various trading pairs that determine which cryptocurrencies can be exchanged between each other. For example, an exchange may offer to trade Bitcoin for Ethereum or Bitcoin for USDT.
You can fund your account on the exchange in bitcoin, Ethereum, and other altcoins. There are exchanges where you can use both regular bank cards and traditional electronic wallets (WebMoney, etc.).
Cryptocurrency exchange https://partner.bybit.com/b/problockchain supports different deposit systems, including fiat (regular money like USD$) The CEX exchange supports bank cards.
The most popular exchanges in 2023.
Please note that the rating may change depending on current trading volumes.
Binance is the most popular and large-scale exchange in the crypto world with an average daily turnover of $30 billion. The platform has a convenient multi-lingual interface, a large number of trading pairs. Mandatory verification of identity.
Bybit is a futures platform with support for copy-trading inverse contracts and other useful options. Here you can work on the spot marketplace and P2P, use leveraged tokens and a trading bot. An NFT marketplace is open for digital art lovers. A non-custodial DEX platform and Bybit Wallet with Dapp support have been launched.
HUOBI is a resource with a large set of trading tools and a unique system of protection against hacking. It supports leveraged trading on spot and futures, as well as staking, including ETH 2.0, free trading bot and OTC transactions. You can mine 7 digital assets on the mining pool. You can exchange crypto for fiat in the «Quick Buy/Sell» tab or on the P2P marketplace. In the «Training» section there are many useful articles for beginners, but you will have to translate them into Russian yourself. Bonus from the authors of the book! Register on the exchange and get 10% discount on commissions and $700 bonuses – https://bit.ly/3bsh6pf.
MEXC Global is a rather popular Asian exchange that offers many tools for working with cryptocurrency derivatives and tokens of defi-projects. You can trade with margin on the spot market, join the MX-Defi mining pool, get prizes for exchanging select tokens or trading M-Day futures. The exchange supports P2P trading and its own MasterCard MEXC plastic card, the balance of which can be topped up with cryptocurrency. Copytrading, a free trading bot and other trading tools are available. You can trade on the exchange without verification, but not all sections will be available. After passing the basic KYC level, you can trade on P2P with the Russian ruble.
KUCOIN is a simple and convenient exchange for cryptocurrency trading and staking. If you are satisfied with the daily withdrawal limit of 5 BTC, you can trade anonymously. For verified customers, the withdrawal limit goes up to 200 BTC and the leverage for futures trading goes up to 100x. You can buy digital currency with a credit card and in the P2P section.
Bitget is a trading platform that has been operating since 2018. It is designed for spot, futures and coin trading. The digital assets are bitcoin, lightcoin, etherium, etc. Trading is organized on a proprietary terminal. There is an official website of the Bitget exchange, a mobile application for iOS and Android. The maker’s commission is 0.02%, the taker’s – 0.06%, there is also a special program for vip-clients with reduced commissions.
The company is headquartered in Singapore. Bitget cryptocurrency exchange is one of the fastest growing exchanges. The total number of users has almost doubled over the last year and already exceeds 8 million.
EXMO – attracts residents of Eastern Europe with the opportunity to exchange cryptocurrency for local currencies Russian ruble, Ukrainian hryvnia, Polish zloty, Turkish lira. And, of course, there are trading pairs with the U.S. dollar and euro. Merchant service is supported, which allows businessmen to accept payment for goods and services with digital money, as well as OTC transactions and trading with the help of cross-platform trading bots.
Okex, or OKX, is one of the safest crypto exchanges with an extensive set of trading tools and user-friendly interface. The service is constantly expanding its services, providing traders with additional opportunities to earn money. In 2022, the exchange rebranded and changed its name from Okex to OKX. Innovations will improve the performance of a variety of tasks, as well as contribute to the expansion of functional capabilities. Beginners are provided with a demo account. It is possible to trade with margin on the spot and futures market, earn passive income on crypto loans and work on a pool. In the Exchange Cloud section, everyone can try to create their own crypto exchange from scratch, customize branding for different web platforms and applications.
Garantex is an exchange for exchanging BTC/USDT to RUB. Transactions are conducted through a single exchange glass BTC/USDT – RUB with automatic conversion. The exchange works with BTC, USDT-ERC20, USDT-OMNI. Simple registration, account protection with double authorization, minimum interest per transaction (0.1%), direct interaction with clients from Moscow, St. Petersburg, Krasnodar, Rostov and Yekaterinburg. Transactions on the platform can be made around the clock. The Garantex exchange is designed for traders, miners and even exchangers. For miners, the highest buying rate is guaranteed, and the official website of the exchange offers to get cash at the cash desk, by courier or by withdrawal to a bank card. There is also an affiliate program on the exchange, according to which you will receive 0.1% of all transactions of your invited participants. Recently, the exchange has created new ruble codes, with the help of which you can transfer funds to other users of the exchange Garantex. But the main plus is that there is an opportunity to sell codes, earning up to 1.5% of the code amount. For beginners there is a simplified system of selling codes. Don’t miss your chance to earn.
Yobit is a popular service among miners and crypto traders. Its main advantages: the ability to exchange cryptocurrency for rubles and US dollars; complete anonymity, no identity verification, support for little-known blockchain projects. Yobit trading platform works with a thousand altcoins and provides active customers with a bonus in the form of access to the money faucet.
What to pay attention to when choosing a trading platform?
The choice of platform depends on the digital assets used. The most popular currencies are traded on all exchanges, but little-known altcoins may not be on all services.
When choosing an exchange, study the reviews. You can visit resources such as Bitcointalk, Reddit or miningclub.info.
Pay attention to the prices of the coin you are interested in on a particular trading platform. Most coins are exchanged for bitcoin, less often for etherium, lightcoin or other alts. The cost of the exchange is expressed in dollars and it can vary slightly from exchange to exchange.
Gather information about the commission fee. Each exchange has its own conditions. It is also important to pay attention to the minimum amount of deposit and withdrawal.
Large crypto exchanges often require verification of identity. If this is not done, the conditions for withdrawal and trading may be less favorable. If you do not want to undergo verification, then study the client agreement.
Pay attention to whether the exchange supports transactions with fiat currencies.
For those who are engaged in trading, a convenient interface and options for technical and graphical analysis are important.
Choice of trading instruments. On some exchanges you can buy or sell coins only at the current price. Other sites allow you to create stop-limit and other types of orders, the price of which is specified by the user.
After the introduction of economic sanctions against the Russian Federation by Western countries, Russians trading on crypto exchanges have another headache. Some platforms have started restricting the access of Russians to trading and even blocking their accounts. Some «especially advanced» exchanges have put citizens of Russia and Belarus and all residents of the recently annexed territories on the persona non grata lists, along with citizens of Afghanistan and other countries that are not quite as prosperous. Our list includes exchanges that work with citizens of the Russian Federation.
It is not always possible to work only on one crypto platform. Most miners and traders have 2—3 accounts on different services, switching between them depending on the situation on the market as a whole, and on each of the trading platforms separately.
Minuses of working on exchanges: high risk of account hacking, closure of exchanges by regulators, hacker attacks.
We have analyzed only a few examples of popular cryptocurrency exchanges, but the market is constantly changing, and new exchanges may appear. Each exchange has its own characteristics, and traders should do their own research to find the most suitable one for their needs.
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