0101

THE ULTIMATE GUIDE

TO SUCCESSFULLY

//:/// INVEST IN

0010
ALTCOINS & ICOs

BI TEMYCOI N
INTRODUCTION
What can you expect from this book?
CHAPTER 1
What Is Cryptocurrency
How Was Cryptocurrency Created
The Meaning of Cryptocurrency
Blockchain Technology
What Is Cryptocurrency Mining
The Properties Of Cryptocurrency?
Different Types Of Cryptocurrency
The Disadvantages of Cryptocurrency
CHAPTER 2
Cryptocurrency Transaction
CHAPTER 3
How To Use Cryptocurrency In Real Life
INDEX
2 BITEMYCOIN.COM
CHAPTER 4
Cryptocurrency Wallet and Exchange
Cryptocurrency Exchange
Cryptocurrency Wallet
CHAPTER 5
Difference Between Investing and Trading
Investing vs Trading Bitcoin
The Risks
Is It Better to Invest or Trade Cryptocurrency?
CHAPTER 6
How To Choose Cryptocurrency To Invest
Choosing Your Cryptocurrency
CHAPTER 7
Coin Lifecycle - When to Buy and Sell
Tips For Investing in Cryptocurrency
Disclaimer
IN T R O DU CTI O N
If you invested $100 in Bitcoin on January
1, 2017, you would have made $342 in eight
months. And that is when one Bitcoin was
already worth $1,000. If you invested at the
beginning of Bitcoins existence, by now, you
would be a millionaire, as cliche as it sounds.
Investing in cryptocurrency can bring
huge profits but it comes at the cost of an
incredibly volatile market, and it can become
a nerve-wracking endeavour. Most often,
the investment should also be a long-term
undertaking, through which you never have
any Return on Investment guarantee.
The truth is that if you are just getting into
cryptocurrency investment, the Bitcoin and
Ethereum ships have already sailed. Putting
money into the most successful digital
currencies is more secure, but it is also less
lucrative. You would have to start with a
significantly large initial outlay and wait a long
time for a capital return.
But what if I told you that there is a possibility
of finding another Crypto-rado? What if
instead of following news about the rising
price of Bitcoin, you could be making money
yourself in the meantime?
It exists. And its called
Investing in Altcoins.
If you focus all your cryptocurrency time on
researching the market, becoming a part of
a community, you can find a virtual currency
that has the same potential as Bitcoin did.
The key to that, however, is not focusing on
the coins financial possibilities, but on its
innovational and technical capabilities.
330 1 0 0
0011
W h at can y o u e x p e ct
f ro m t h i s b o o k?
Dont worry - it will not be another guide on
how to buy your first Bitcoin - but rather on
how to invest in anything else but Bitcoin.
From the basics of what is cryptocurrency,
how to store it and what are different ways of
investing, to choosing the one and managing
the investment properly. If you do not know
anything about cryptocurrency, you will have
a good understanding of all basic terms, and
by the end of this book, you will be able to
decide whether you should invest.
Most importantly, it will teach you on how
to choose the virtual coin of the future and
minimise associated risks and scams.
The best thing about the beginning of your
cryptocurrency journey is that you do not
need any previous experience. The only
advantage of a previous investment in fiat
currency, property or be it anything else, will
be your endurance through ups and downs of
the venture.
What do you need, though, is a basic
computer literacy. You have to understand
the importance of secure passwords, data
synchronisation and how to backup your data.
If you are a firm believer of the anti-virus
software protecting you from all that is bad
online, and your passwords are a name of
your childhood dog, then you have to go back
to computer basics and come back to virtual
currencies later.
If you are confident enough with your
computer skills, go on then and start
learning on how to invest and become an
owner of the future financial system!
BITEMYCOIN.com
BITEMYCOIN.COM
CHAPTER 1
W H AT I S
C RY P TO CU RREN CY

The truth is - Bitcoin and cryptocurrency

are buzzy words that come with a lot of
excitement and promises that you will make a
ton of money in a short amount of time.

The harsh reality, however, is less of a fairy

tale with potential, money loss and the lack of
market understanding.

So, before you jump into an investment

and moving your lifetime savings to
cryptocurrency, lets understand what
cryptocurrency is and what is the unique
technology behind it. Because even though it
is considered to be a virtual currency, it works
completely different to traditional money.

01 4 BITEMYCOIN.COM
How Was
C r yptocurrenc y C re a ted
The development of cryptocurrency
explains a lot about the current lack of trust
towards virtual currency and the common
misconception about its purpose.
In 2008, when the recession hit the world
in the worst possible scenario. Not only did
people lose their assets and savings, but most
importantly, they have even lost trust in a
traditional banking system. The new system
that was just created, was going to bring
back the ownership of money to the owners;
without letting it go through third party
hands.
The 90s has already witnessed several
attempts of creating a digital cash but none of
them were successful. Mainly because
each founder tried to centralise it and find
a legitimate institution that will accept it as
means of payment. Not many people know
it, but cryptocurrency emerged as a product
of another invention - Bitcoin - the first and
most valuable virtual currency that has ever
existed.
The founder of Bitcoin - Satoshi Nakamoto
- wanted to create something nobody has
thought about before, a digital currency. All
he intended was to develop a peer-to-peer
electronic cash system.
Nakamoto, himself said:
A lot of people automatically dismiss
e-currency as a lost cause because of all
the companies that failed since the 1990's.
I hope it's obvious it was only the centrally
controlled nature of those systems that
doomed them. I think this is the first time
we're trying a decentralised, non-trust-
based system.
- Freedomnode.com
5 BITEMYCOIN.COM
But what does it mean?
In a centralised network system, you need a
payment network with an account, balance
and a transaction to be able to monetise
the cash. The central server keeps track of
all transactions and prevents the so-called
double-spending - the same amount of money
cannot be spent twice.
In a decentralised network, on the other hand,
you do not have that server. So you rely on
every single entity of the network to record
all the transactions and check if the future
transactions are valid, without an attempt of
double spending. Usually, the central authority
declares the correct state of balances. For
us, casual Joes, it is the bank that does all the
hard work, and the entire process is out of
our site. Hence, most currencies circulating
the world are controlled by a centralised
government, so that a third party can regulate
their creation and value.
In the peers' network, designed by Nakamoto,
transactions are an open source, controlled by
a code and they rely purely on the network.
So no third party can affect the currency. And
this was a key to his invention - no entity or
government can influence the value of the
currency, it is born within the network, and
it stays there. The only thing that affects it is
people who are investing in it, thus members
of the P2P network.
 BITEMYCOIN.com

The Meanin g o f
C r yp tocurre nc y
According to the Investopedia definition:

A cryptocurrency is a digital or virtual

currency that uses cryptography for
security.

A cryptocurrency is difficult to counterfeit

because of this security feature. A defining
caracteristic of a cryptocurrency and
arguably its most endearing allure is its
organic nature; it is not issued by any central
authority, rendering it theoretically immune
to government interference or manipulation.

Cryptocurrencies are built on cryptography.

They are not secured by people or by trust,
but by math. It is more probable that an
asteroid falls on your house than that a
cryptocurrency address is compromised.

If you look at money on your bank account

and the transactions you make on an everyday
basis, you will see that it all comes down to
the entry in a database. Money is all about a
verified entry in some database, whether its
an account, balance or transaction. Before you
make any changes to the database, certain
conditions have to be met - usually, you have
to own the money to be able to transfer it etc.
The same theory applies for cryptocurrency
as well - it is all about limited entries to the
database, that nobody can change unless
there are certain conditions met.

6 BITEMYCOIN.COM
Blo ckchai n Tec hnolog y -W h e re T h e M ag i c H ap p e n s
The backbone of cryptocurrency is blockchain
- a technology that was created alongside
Bitcoin in 2008.
The blockchain is to Bitcoin, what the internet
is for email. A big electronic system, on top of
which you can build applications. Currency is
just one.
One of the easiest ways to gain a first
understanding of blockchain technology
is to think about Google Docs or Sheets
documents:
Do you remember days of using Word
documents and sending it back and forth
via email for rounds of edits for changes? Or
forgetting to put it on your pen drive and
feeling sorry for yourself about missing a
presentation? Well These times are long
gone after introducing Google Drive which
allows you to store all your documents in
a cloud, enables multiple people to edit
documents at the same time and updates
itself without hitting the Save button. Pretty
simple, right?

7 BITEMYCOIN.COM
That is in a nutshell how blockchain
technology works.
Picture a spreadsheet that is duplicated
thousands of times across a network of
computers. Then imagine this network is
designed to update this spreadsheet regularly.
And you have a basic understanding of
blockchain. The blockchain is a growing
database with millions of records, otherwise
known as blocks.
With a blockchain, many people can enter
information into records, and a community
of users how the record is amended and
updated. The blockchain database, just like
Google Docs, is not stored in one location.
Rather, it functions more like a cloud, which
anyone can access and verify it.
Three major technologies create a
blockchain technology:
#1 Private Key Cryptography
The entire process starts with two people
wanting to do a transaction or one person
wanting to pay another entity.
To do that, they both need:
>>Private secure key
>>Public secure key
Both of these keys are required to complete
a so-called digital signature. Bear in mind;
it is not a handwritten, personal, signature
but a complex combination of numbers.
The signature will provide and ownership
of the transaction and will work as a sort
of stamp of the message. It also shows that
the transaction comes from a legitimate
source and will prevent an account holder
from double spending. The key combination
only solves a problem of authentication, but
it does not provide a full security. It must
be combined with the transaction approval
8 BITEMYCOIN.COM
and authorisation. To do that, we need a
distributed network.
#2 Peer-to-Peer Network
If you remember the early days of Napster and
illegal (ouch!) music downloads, then you also
must be familiar with the P2P network. It is
a designated network that allows two users
to exchange goods (or files) without a third
party interaction. And, as we already know,
blockchain and cryptocurrency are all about
avoid the middleman and its intrusion into the
process.
When you look at blockchain, you can see
a similar pattern. It is an extensive network
of members, whose primary purpose is to
validate the transactions and by that confirm
they have all witnessed the same thing at the
same time. And everyone has access to it.
To secure the network they work on solving
a complicated mathematical formula, and
whoever solves it first, gets to verify the
transaction and will be awarded particular
cryptocurrency.
This step is also known as the distributed
network, purely because the entire network
and its members are spread all over the world.
The bigger the network, the more secure are
the transactions. Combining the security key
with the verification from distributed network
allows a safe and quick flow of transactions
that can be approved within minutes.
That is not the end - the money has not
arrived in your bank account yet. To do that,
the network has to establish a protocol.
#3 Program - The Blockchain Protocol
After all these steps we now have a block -
a virtual element that consists of a digital
signature, stamp, and relevant information.
The block is then spread to all the nodes
within a network.

Apart from humans (yes, they're geniuses

but still humans), the blockchain system is
built from nodes - a computer connected
to the network. Every node is created on
a computer and a client that validates the
transactions. Nodes work as administrators
of the blockchain technology, and they join
voluntarily. Each one of them can get an
incentive at the end: an opportunity to win a
Bitcoin or any other cryptocurrency.
So one persons interest helps to serve the
public need.

With a bitcoin, the protocols goal is to

eliminate the possibility of one coin being
used twice in two different transactions.
Nodes also create and maintain the history
of transactions of each coin by solving proof-
of-work mathematical formulas. Once the
transaction is announced on the network,
all nodes are working on the same formula,
either accepting new blocks or rejecting the
invalid ones. Once all nodes agree, they add a
new block to the chain with a stamped time,
through so-called cryptocurrency mining.

9 BITEMYCOIN.COM
What Is
C r yptocurrenc y Mi ni ng?
Since miners are the most important part
in cryptocurrency transfers, it is worth to
look deeper at what do they do. As a rule,
everybody can be a miner. Because the
decentralised network does not have a single
authority, a cryptocurrency still needs some
mechanism to prevent one ruling member
from abusing it.

So, Nakamoto set the rule that whoever wants

to be a miner, has to invest into some work of
their computers to qualify for the task. What
they have to do is find a hash - a product of
cryptographic function - that connects the
new block with its predecessor.

In simple words, mining is the process of

confirming transactions and adding them
to a public ledger. To do that, a miner has
to solve, a previously mentioned, incredibly
complex mathematical puzzle. The mining
process is what gives value to the coins
and is known as a proof-of-work system.

This function is designed to be difficult on

purpose. Otherwise, it wouldnt be able to
prevent a malicious behaviour or spammers.
Above all that, it also prevents a single person
from having control over which block is added
to the ledger next. Surprisingly, the process
takes minutes, and the speed of it is one of the
things that makes cryptocurrency so efficient.

10 BITEMYCOIN.COM

What Are Th e Prop e rti es
Of Cryptocu r re n c y
To be able to understand the revolutionary
aspect of cryptocurrency honestly, we have
first to understand its properties and what
makes it so different to traditional banks
and cash.
When describing cryptocurrency properties,
we have to separate between two different
properties: the monetary and transactional.
MONETARY PROPERTIES
CONTROLLED SUPPLY
Most cryptocurrencies limit the supply control of
tokens by a schedule written in code. It means
that there are no surprises and anyone can roughly
estimate the amount that will be available in the
future. For instance, we already know that by 2140
Bitcoin will run out of its supplies and there will not be
any more to buy.
NO DEBT
If you look at your current bank account balance, it
will most probably be debt. So even if your account
is on plus, it is still debt. That is how Fiat Money
system functions. Cryptocurrency, on the other hand,
is nothing like that. The money you have on your
account represent what you have in reality.
01
11
TRANSACTIONAL PROPERTIES
IRREVERSIBLE
Once the transaction has been sent and approved,
there is no way back. Nobody can reverse the
transaction, even if you make a mistake or you
became a scam victim, you will not be able to get your
money back.
SECURE
We already spoke about the private key and the
encryption that makes cryptocurrency bullet-proof
safe. The extremely strong cryptography prevents
from anyone being able to access the code
and the signature.
FAST AND GLOBAL
Because cryptocurrency exists only online, the
transactions are confirmed in minutes. It does not
matter if you are sending your money to a neighbour
or a stranger on the other side of the world, the virtual
money will be deposited into your account almost
instantly. Yup, no more lengthy bank transfers and
painful currency exchange.
ANONYMOUS
Now, this is a part which causes the most
controversies around cryptocurrency. Neither the
accounts nor the transactions are connected to the
real world identities. Your name is a pseudonym, and
the address is a combination of 30 symbols, which
are not linked to your real address at all.
PERMISSIONLESS
You do not need anyone permission to open up a
wallet and buying cryptocurrency. Anyone can do
that, and you do not need banks permission or credit
checks etc. No gatekeepers are involved.
BITEMYCOIN.COM
Different Ty p e s
O f C ryptocu rrenc y
In this sense, cryptocurrency is similar to
worldwide currencies. There is not just one
cryptocurrency that is available. Theres over
700 of them, and with the rising demand, the
new ones are constantly invented.

So lets have a look at the most popular

cryptocurrency:

Bitcoin
It is the very first, most well-known,
cryptocurrency available today. What started
as Nakamotos experiment, turned into a huge
investment for some and one of the most
desired currencies to purchase. The value of
Bitcoin has begun at zero, and it has grown
ever since to a value of as much as 5,000.

Ethereum
The same way as Bitcoin is a Nakamoto's
legacy, Ethereum belongs to another
crypto-genius - Vitalik Buterin. While
Bitcoin is used to validate a set of accounts,
Ethereum can also prove so-called states.
What does it mean? Ethereum can not only
process transactions but also contracts and
programmes. Meaning that besides Ethereum,
there are other clones of the currency that
create an entire Ethereum family.
Bitcoin can fuel itself, and it is just a digital
currency. Ethereum is more of a blockchain-
based development platform.

12 BITEMYCOIN.COM
 Litecoin
Its the second digital currency that emerged
after Bitcoin. It is almost four times faster,
with a larger amount of tokens and minimised
algorithm. Litecoin is more expensive and
more complicated to produce than Bitcoin.
Hence it is not as popular. Nowadays though
its considered as a backup option for those
who are aware of the problematic Bitcoin.
It is also considered as silver to bitcoins
gold - it is cheaper, but there is more of
it in circulation.

Monero
This algorithm was introduced with more
security in mind than Bitcoin. It added extra
privacy features to the chain and was not
considered as a currency at the beginning.
If you use Bitcoin, every transaction is
documented and can be traced back to its
origins. Monero introduced a cryptonite
algorithm called ring-signatures. It allowed
processing transactions, without them being
quickly released in the blockchain. It is one
of the most anonymous cryptocurrencies
available on the market.

13 BITEMYCOIN.COM
T h e Di sa d va nta g es
o f C ryptoc u rrenc y
Cryptocurrency has many benefits, and most
of them are reflected in its transactional
properties. From security, to how quickly
money can be available on your account.
But with so much bad press and reputation,
you are probably wondering what is it that
made cryptocurrency such an underdog and a
favourite topic of dark web.
Lets have a look at what is not so great about
cryptocurrency:
NOT WIDELY ACCEPTED
There are not many companies or websites that
accept bitcoin as a method of payment. If you want
to use it a payment, you would first have to find a
service provider that takes it and only then you can
use it.
IRREVERSIBLE
As mentioned before, it is one of the
cryptocurrencys properties- you can never
get your money back. If you send it to a wrong
person or you put an extra zero, and from 1,000 it
becomes 10,000, it is your problem. As harsh as it
sounds, you cannot complain to anybody, not even
Nakamoto could reverse the transaction for you.
01
14
LOSING YOUR WALLET
Just like in real life, you can lose your wallet with
cash and credit card inside. If you forget your
login details or for some reason cannot access the
platform, there is not much you can do. There were
not many cases in which anyone was locked out of
the system entirely, but still, it could happen. And
when it happens, there is nothing you can do. Even
when somebody steals your credentials or personal
keys, which again, is highly unlikely, you will have
to accept it and live with the loss.
SUBJECT TO MARKET FLUCTUATIONS
If you want to invest in cryptocurrency, you have
to keep in mind its dynamic and changing market
prices. While it can be used to buy and sell, its also
a commodity like oil.
It is best to look at it as a long-term investment,
rather than a quick way of making money. So, you
cannot get discouraged if the value suddenly drops
and you lost quite an amount - the chances are you
will recover it in the future.
TRANSACTIONS ARE DIFFICULT TO
TRACE
Cryptocurrency account cannot be linked to a
physical and real address, neither to your details,
hence it is harder to determine. Yes, there is an
algorithm and a unique signature, but you will
never be able to trace it back to the real person
and the account holder. Which is not an easy
task considering the state-of-art security. This
feature makes digital currency the perfect tool
for criminal transactions and is one of the reasons
for some governments to declare cryptocurrency
transactions illegal in their countries.
BITEMYCOIN.COM
CHAPTER 2
C RY P TO CURRENCY
T R AN S A C TI ON
In the world of cryptocurrency, Bitcoin is
not the only one in town. There are many
alternative cryptocurrencies, commonly
known as altcoins. When Bitcoin was invented
in 2008, it was a fresh and revolutionary
financial vehicle. The goal was to replace
traditional banks and take the control over
money from governments and give it back
to individuals. Currently, there are over
900 cryptocurrencies, and the list keeps on
growing, each one of them with the intention
of being Bitcoins improvement or offering
different security layers.
Regardless of what the cryptocurrency is
designed for - payments, smart contracts
or transferring fiat currency - theres one
common thing. They all can be transferred
from one person to another or
between businesses.
There are variations of how each
cryptocurrency confirms the transaction
legitimacy and how secure, and anonymous,
they are. However, there are certain steps
certain steps can be applied to most:
Step 3 - If you have an online bank account
then you know that before you make a
transfer or payment, you have entered a PIN
code or use a digital security key. Same thing
works for cryptocurrency - underneath a
message, you have to include your signature.
Except, the signature is not based on
handwriting but a mathematical formula.
The math behind a signature comes from
the word cryptography - an art of hiding.
Typically used to hide secret messages, but
in transferring cryptocurrencies is used to
prove the signature's authenticity. Smart,
right? Whats more - each user has their own,
unique private key which is used to encrypt
the signature!
Step 4 All confirmed transactions from the
beginning of cryptocurrency are stored in a
public ledger. The ledger ensures the accurate
spendable balance, and that each transaction
uses only coins that already belong to the
spender. Again, it is done to avoid theft and
double spending.

Step 1 - To be able to send money, you have

to set up a wallet. The account and the idea
behind it are similar to a popular online bank
account. You can see your balance, choose
an amount you want to transfer, enter the
recipient's details and click Send.

Step 2 - After you click Send, a message with

your and recipients details will be forwarded
to a particular cryptocurrency network. It
prevents theft, and previously mentioned,
double spending.

15 BITEMYCOIN.COM
 HOW CRYPTOCURRENCY
TRANSAC TION WORKS
So who can become a ledger?
Surprisingly - anyone. It goes down to the
original idea behind cryptocurrency and
wanting to avoid having one entity, e.g.
government that can control the value
of cryptocurrency.
Every time the message is sent, so-called
maintainers receive it - people who all want
to help with maintaining the ledger and the
value of cryptocurrency. Each maintainer
keeps a copy of a transaction with a message
and updates it upon receiving a new
transaction. Ledgers are spread all over the
world, so as you can imagine, there will be
different versions of the ledger accordingly to
whatever balance each maintainer has. It can
also be affected by a potential fraud.
How can maintainers agree on what the
correct ledger is? Like in every democracy,
there is a voting system. In cryptocurrency
world, its different though to a standard
ballot box. Instead, maintainers try to solve
a mathematical puzzle and whoever solves
the problem, gets to decide the correct
ledger. Math allows a democratic vote in a
decentralised system, and the only way to
outsmart the system would be buying more
electricity and computers, thus increasing
the cost. In a way, maintainers can create new
money through computation; hence they can
be called miners.
02
16
WALLET
Download a wallet to your computer or a
smartphone. You can also invest in a
hardware wallet.
ADDRESS
Your public address will be automatically
generated. Do not forget to keep secure your
private key - depending on a wallet, it can be a
lengthy word phrase or a complex password.
EXHANGE
Find a trusted exchange that trades your
chosen cryptocurrency and set up an
account.
PURCHASE
Buy cryptocurrency from an exchange in your
preferred method of payment and wait for the
funds to arrive at your account. As soon as your
cryptocoins arrive, they will be stored on an
exchange wallet.
TRANSFER YOUR FUNDS
As soon as you receive the requested amount
of cryptocurrency, transfer it to your personal
wallet. Never leave cryptocurrency on an
exchange as you do not have an access to your
private key, and you will not be able to recover
it in case the exchange goes busted.
BLOCKCHAIN
The record of your transaction will be kept on
a public ledger. From the moment you request
the transaction on the exchange until it arrives
to your personal wallet.
BITEMYCOIN.COM
CHAPTER 3
H O W TO USE
C RY P TO CURRENCY
IN R E AL LI FE
Cryptocurrency is still a relatively new subject
that is finding it difficult to make it to our
everyday reality.
But, that does not mean that its going to
stay like this for a while. Cryptocurrency and
blockchain technology is our future, even
though it might not seem like that yet. Not
all cryptocurrencies are designed to be a
payment method - like Bitcoin - some of them
are used only as tokens to be able to program
smart contracts or transfer fiat currency
around the world.
Cryptocurrency has almost endless variations
and possibilities in how it can be used. Here
are some examples of the most popular
cryptocurrencies:
17
//: Bitcoin - everyday payment method, e.g.
coffee, clothes; can replace fiat money.
//: Ethereum - Ether is used as a token to
program smart contracts that can replace
lengthy legal paperwork, messy health records
and lost land registry.
//: Ripple - the XRP token is used for low-cost
international fiat money transfers in less than
4 seconds.
//: IOTA - the token is used for feeless and
effortless machine-to-machine payments in
IoT.
//: Dash - it is used as digital cash.
//: Monero - thanks to a new way of
completing digital signature, Monero is an
entirely anonymous digital currency.
//: Omise Go - financial technology that can
be used for transferring both fiat and virtual
currencies.
03 BITEMYCOIN.COM
CHAPTER 4
C RY P TO CURRENCY
WA L L E T & E XC H A N G E
Regardless of how much are you planning to
invest in cryptocurrency, there are two things
that you need before spending your money: a
wallet and exchange.
The former will store your crypto-coins, while
the latter will allow you to purchase them.
Theres a myriad of options out there, but
you cannot just use the first exchange that
pops up on Google. Unlike traditional brokers,
cryptocurrency exchanges can be run by
anyone from serious entrepreneur to
coding amateurs.
Theres a lot of different types of wallets
and exchanges, but theres one rule you
MUST follow:
Do not keep your funds
on the exchange!
It does not matter how secure or well-known
is the exchange - you cannot keep your funds
there. There are plenty of stories I could bring
here to show you how quickly an exchange
can get busted or hacked. It may be one of the
most famous exchanges and still get hacked.
If you store your cryptocurrency on an
exchange, you do not have access to your
private key. Hence, you cannot claim the
ownership of those crypto-coins. Only if they
are securely stored in a wallet, you will know
that they belong to you.
18
C r y p to cu r re n cy E xch an ge
An exchange is a platform that allows you
to buy and sell cryptocurrency. Different
exchanges have different verification rules,
so it depends on how much do you cherish
your anonymity.
Some will ask just for your email address,
while others will ask for an ID scan and facial
verification. Even though cryptocurrency is
all about keeping yourself as anonymous as
possible, the more verification is required, the
safer the exchange is.
Various exchanges, e.g. Coinbase or BitPanda,
will increase your buying limits accordingly
to the verification level and amount of
information you provide. If an exchange
is based in the US or the UK, they will be
obligated to ask for your ID. It is the local
jurisdiction and you must comply if you want
to use their services.
Most exchanges sell Bitcoin, Ethereum, Dash
and Litecoin in exchange for fiat currency. If
you are interested in lesser-known altcoins,
you will have to exchange them for one of the
bigger cryptocurrencies.
Cryptocurrency Rules To Follow:
1. Due Diligence
When you open a new bank account, you
thoroughly research the bank you will be
trusting with your money. A cryptocurrency
exchange is not any different - you have to
do your research and perhaps be even more
careful as as any rules or legislation do not
bind them.
BITEMYCOIN.COM
Apart from reading reviews, check forums for
any recent complaints or issues. It is worth to
Google Exchange-Name Scam and see what
comes up. If there were previous comments
about an individual exchange possibly being a
scam, it should appear first. That way, you will
not waste your time.
Saying this - there will be a lot of false
complaints that you will come across.
Cryptocurrency market is a bit like Wild
West right now, so be careful while checking
different sources.
The most reliable sources for any information
are Reddit, GitHub or BitcoinTalk. If you come
across just one complaint or the same one
suspiciously repeated everywhere, then it
is probably a malicious attack rather than a
genuine complaint.
2. Customer Service
A cryptocurrency exchange is a business - the
more it cares about its customers, the more
reliable it is. If you send them a quarry or open
a support ticket and they do not get back to
you within 24h, then you have a picture of
how good is their customer service.
//:TIP
A good and supportive customer service
can tell you a lot about the funds of the
exchange. The more available customer
service is, the more likely it is you are
dealing with a well-funded venture.
Be suspicious of canned emails with
references to the wiki or the FAQ. Yes,
these have their place in the conversation,
but the more a customer service agent
talks to you like a human being, the more
likely it is you are dealing with a reputable
and well-funded company.
Good customer service is not cheap.
3. Who Is The Owner
The exchange should be as transparent as
possible. You want to know which country
is your cryptocurrency coming from, who is
the owner and for how long has the exchange
been established.
In the past, cryptocurrency exchanges were
created mainly in tax heavens. Nowadays,
they are moving to worlds financial centres
like San Francisco or London - Bitcoin
entrepreneurs are just like all entrepreneurs,
we like to build the best products and run
the best companies, you cannot do this from
the shadows.
4. Fees
Before joining, make sure you understand
what the deposit, withdrawal and transfer
fees are. Reliable exchanges will have them
on the website underneath the Help section.
It is common that exchanges will have higher
fees for credit/debit card transactions so
do not let that scare you away. Bear in mind,
cryptocurrency transactions are irreversible,
unlike bank card transactions. Paying with
a bank card will also mean stricter security
measures and a full identity verification.
19 BITEMYCOIN.COM
C r yptocurrenc y Wa llet
Unlike traditional wallets, digital wallets do
not store the currency. And it comes down to
the fact that digital currencies are not stored
anywhere. They do not exist in a physical
form, and they do not have a location like
traditional money, stored in bank vaults.
Virtual money exists in the form of
transactions records, which are
registered on the blockchain.
Since you want to start investing in
cryptocurrency, you must know that to make
cryptocurrency transactions; you need both
public and private cryptographic keys. The
keys are critical in providing security for your
virtual money.
The public key gives you an address (a long
number combination) and is visible to all
members of the peer-to-peer network. It
is a number that other members will use to
identify you and which you would have to
provide if you want to receive a transfer from
another user.
The private key is what you have to keep
secret at all times. The combination of both
keys is required as a signature on a message
that is attached to your transaction.
If you lose your private key, you will also lose
your money, and you will not be able to get
them back!
To be able to unlock a transaction, both
private and public key have to match each
other.
It is important to remember there is not a
physical exchange of coins the balances of
the wallets either increase or decrease.
20
Cryptocurrency wallets are often
misunderstood to be entirely anonymous,
but with the current technology, there are
ways of tracking it back to your real identity.
Your account and the keys will not require
any of your details; the address will be your
pseudonym. But an advanced technology can
track back your IP address.
//:TIP
You can use multiple wallets at the
same time! You can have a hardware
wallet to store most of your funds
and online wallet for smaller, everyday
purchases.
Types of cryptocurrency wallets:
Desktop
These wallets are downloaded and installed on
a PC or laptop in the form of an application,
and they are accessible only from the desktop
they have been installed on. Desktop wallets
offer one of the highest security levels as you
do not have to use your browser. However, if
your computer gets hacked, gets a virus or the
wallet file is corrupted, there is a possibility
you will lose all your funds. You have to
backup the wallet regularly to avoid the risk of
losing the data completely. Eg. Exodus.
BITEMYCOIN.COM
Online
Wallets are stored on a cloud, and they are
readily accessible from any location, as long
as you have an internet connection, which
makes it extremely convenient. But you have
to remember that a third party controls
them, hence they are not entirely private.
Remember, apart from your funds; you also
have to store there your private key. It makes
online wallets more prone to hacking attacks
and theft. Eg. Copay.
Mobile
They are installed on your mobile as an
application, and you will need a good 3G
connection or wi-fi to be able to access them
and make transactions. They are usually a
simplified version of the desktop app but have
the same features. You have to be careful
while using them, especially in open spaces or
with the use of public wi-fi, as they make you
more vulnerable to hacking attacks. Most of
the time, if a wallet is available for a mobile, it
also has a desktop version. Eg. Copay
Hardware
The difference between hardware and
software wallet is the method of storing the
keys. With a hardware wallet, you will have to
store your keys on a particular device, e.g. a
USB stick. You can still make your transactions
online in the same way as you would with all
the other wallets, but your funds are stored
offline which increases security. They are still
easy to track, and they are portable but away
from an online danger. To make a transaction,
you have to plug your device to a computer
with internet connection, enter a pin,
send currency and confirm.
Eg. TREZOR, Ledger Nano S.
21
Paper
These wallets are perhaps the least common,
especially that one of the perks of virtual
currency is the lack of paper money. The
paper wallet is simply a printout of your public
and private keys. The printout existence of
the wallet significantly decreases the security
level, and you are also risking losing the
paper. To be able to do transactions with
a paper wallet, you still need a software
wallet to transfer funds. You have to enter
your public address, shown on your paper
wallet, to the software wallet and funds will
be automatically transferred. If you want to
withdraw your money, you have to move funds
from paper wallet to your software wallet.
//: WALLET GOLDEN RULES
Do not lose your password/key/seed!
These all pretty much mean the same:
if you lose it, you will not be able to
access your wallet, and you will lose
your crypto-coins!
Back-up - every time you make a
transaction from or to your wallet,
make sure you do the back-up!
Without it, the balance will not be
updated and saved.
Install Updates - do not ignore all those
annoying and persistent updates-
you need them to protect the wallet,
especially from hackers!
04
BITEMYCOIN.COM
CHAPTER 5
D I F F E R E NCE
B E T W E E N INVESTING
A ND T R ADING
C RY P TO CU RREN CY
If you Googled Invest in Cryptocurrency, then
you have probably been shown multiple ads of
platforms that are related to trading, but not
investing in cryptocurrency. Since you are still
a rookie in the crypto-world, put trading aside
- until you get more comfortable with the
market and understand how it works.
Knowing the difference between investing and
trading cryptocurrency is crucial while trying
to choose your way of making money from
cryptocurrency. Because to the uninitiated,
cryptocurrency might seem like a gold mine
a dream job which you can do from your
own house by clicking a mouse and staring at
the screen.
The harsh reality, though, involves a high risk,
high reward game during which a cryptocoin
can dramatically drop or go up in few hours.
There is a significant distinction between
investing and trading Bitcoin just like in
reality investing money differs a lot from
trading them on a stock exchange.
holding to the cryptocurrency until theres a
perfect moment to sell. And that sometimes
can be years from the initial investment.
By contrast, Bitcoin trading is more of a
short-term endeavour. Getting on the market,
staying in trade for a maximum of few months
and moving on as soon as the price reaches
its peak. Hence, Bitcoin traders are known to
be price-sensitive and abandoning the market
when it becomes unprofitable. There is also a
leveraged trading, resembling forex trading in
fiat currency.
They say that a serious trader is not a day
trader. But in a case of cryptocurrency, a
serious trader is a day trader, winning against
the high volatility and price fluctuation.
What you choose should not only depend
on your experience, but also personality.

Inv e s t i ng v s Tr a d i n g B i tcoin
Investing is a long-term undertaking,
which features a portfolio of different
cryptocurrencies, fiat risk hedging,
and business objectives. In most cases,
cryptocurrency investors are indifferent to
price volatility and unlikely to give up on the
investment easily. Investment also means

22 BITEMYCOIN.COM
T h e Ri sks
There are risks involved in both investment
and trading - both related to the dynamic
spirit of cryptocurrency. Investors can wait
through the crash and have the resources to
prolong the bad strike. Traders, however, are
often compared to professional gamblers
they have to act quickly and know when is the
right time to leave the game.
Leaving Money on an Exchange
Some of the exchanges come with a wallet to
store Bitcoins, and it should make ones life
easier. But dont be mislead that it is the most
secure option.
One of the most famous events in Bitcoins
history is the collapse of the Japanese
exchange Mt. Gox. In Bitcoins early days,
Gox was the largest Bitcoin exchange and
the easiest way to purchase Bitcoins. The
catastrophic collapse resulted in losing over
800,000 bitcoins, and customers were never
able to receive their money back.
Your Capital Is at Risk
I doubt anyone goes into cryptocurrency
investment before giving the first go with
fiat money. You would never start with all
of your capital you would rather build
the experience and understand the market
correctly. Investing in cryptocurrency is not
any different. A lot of beginners are deceived
with an idea of how much they can make
from the initial investment. It surely is a more
dynamic environment, and rates are changing
quicker than in a traditional stock exchange,
but that only indicates an even higher risk.
Investing Everything In One Go
At the beginning of your cryptocurrency
journey, you might want to be a bit more
careful. I know - the perspective of getting
a huge return is tempting, but do not get
carried away. The market is extremely
volatile, and you do not want to start off with
losing all your savings. Take it slowly, build a
cryptocurrency portfolio and then decide if
you want to make a big jump.
I s I t B e t te r to Inv e s t
o r Tr ad e C r y p to cu r re n c y?
There is no straightforward answer to this
question. The choice should depend on
experience, available assets, and personality.
Investing in cryptocurrency can start from
a minuscule amount which can keep on
increasing with time and expertise. It is also
a long-term undertaking, which eventually
might lead to accumulating a significant sum
of money. But it can ease the nerve-wracking
volatility of cryptocurrency as one would
enter the market prepared for a wait.
Trading, on the other hand, should
be reserved for those who know the
cryptocurrency nature in depth and are not
afraid of losing. The constant fluctuation can
be an exhilarating experience for any trader,
but at the same time, it can scare away those
who do not know how to deal with it.
It is not only the technicalities of it but also
ones character and nature. Nobody said that
you cannot do both at the same time. If your
budget allows you to do so, try both ways and
see what works the most for you.
23 BITEMYCOIN.COM
 CHAPTER 6
HOW TO CHOOSE
CRYPTOCURRENCY
TO INVEST
There are hundreds of coins listed on different
exchanges, and by the time you finish reading
this book, there will be even more. However,
not many of them gain traction, not to
mention surviving the next five years.

Investing in Bitcoin or Ethereum seems like an

obvious choice at the beginning. They are the
two of the biggest cryptocurrencies on the
market, sold by popular exchanges and theres
a little risk involved. The real deal starts when
we look at all altcoins. How to differentiate
between a legitimate coin and a scam; how to
find out if the coin is innovative or it has been
created as a joke, and finally, how can you
recognise the financial potential?

This chapter will show you all the factors and

angles you have to take into consideration
when looking for a new cryptocurrency
to invest. Without having a degree in
programming, software development or
investment banking.

Bear in mind that everything discussed here

must be viewed in context to the coin as a
whole. All these signals should be taken as
food for thought while picking an investment,
rather than a set and stone rule. There are
cases where some of them might mean a
sound thing to the coin, e.g. a coin with a low
liquidity could be a good buy.

So keep all them in mind, remember what

to look out for but always bring a second
judgement to it - does the coin in its eternity
is a good investment, with the good and the
bad in it?

24 BITEMYCOIN.COM
Choosing Yo u r
C r yptocurrenc y
Cryptocurrency ranking is one of the best
places to start tracking the development
of all coins. The position depends on their
24h volume, liquidity, market capitalisation,
developer activity and price.
If you keep on tracking it on a daily basis,
you will be the first one to know about a new
altcoin that is climbing high, and you can
follow the price fluctuation. CoinMarketCap is
one of the most reliable and easiest platforms
to use, featuring all 800+ cryptocurrencies.
These are the things/rules you have to look at
while assessing the coins ranking:
24h Volume
This factor indicates how much value has
been traded throughout a 24h period; it is
expressed in USC and BTC. Higher 24h volume
reflects a more established coin with a solid
base, at least one functioning exchange (where
the volume comes from) and perceivedvalue
by the trading community.
Try to choose a coin with at least 10,000 USD
trading volume - it shows that the currency
has already been traded and there is a certain
percentage of the network that believes in the
coin. There are success stories of investors
buying a coin for few cents, with an incredibly
low trading volume, but these are rare
incidents. Do not be misled - you have more
chances of success by sticking to averages,
instead of chasing miracle trades.
You have to watch out for the so-called
pump and dump schemes. They are set up by
developers who buy the currency in a large
quantity, drive the price up and sell as soon as
the coin reaches a peak - eventually dropping
the price significantly.
Most of the time, these schemes are reflected
in the trading history and price graphs in
steep curves. If you spot this pattern, keep
tracking it every few days over a week or two
period - Pump and Dump scheme does not
usually last longer than few days.
Coin Liquidity
The coin liquidity is measured in both the
volume percentage and the BTC volume.
Some coins have minimal BTC amount.
Meaning, even a purchase of few hundred
could move a market into your disadvantage.
To avoid that, try not to use exchanges that
have a low volume trades.
The coin liquidity goes align with Wash
Trading which can happen with both high
and low volume coins.
The exchange can artificially inflate the
trading volume to appear more attractive to
traders who always look for a higher liquidity.
If you are not familiar with the exchange
history, or you opted for a lesser-known
exchange, watch out for the growth of volume
without a corresponding increase in price.
Why do exchanges do that? If the market
does not move in the direction they want it to
move, they will do their best to encourage the
trade in order not to lose customers and
the incentive.
25 BITEMYCOIN.COM
Unfortunately, wash trade has been known
to exist even at the larger exchanges and
sometimes it is a sign of a deeper problem.
The exchange might not be doing financially
well, and the market stagnation is not helping
it. If you come across an exchange like that, it
is the first sign to back out.
Market Capitalisation and Current Price
Market Capitalisation is calculated by the
number of coins available multiplied by the
current market price. However, it works only
with the coins that have already been mined,
not the future supply.
Developers tend to issue a lot of coins at
the beginning which can reflect a higher
perceived value than it is in reality.
Current price is an indicator of a perceived
value but not much else. The price should
never be the deciding factor behind the
investment. The technical and future potential
are the driving factors.
If you are new to investing, you might be
tempted by a low price, but you should not
base your decision solely on that. Market
capitalisation can also represent an inflated
price due.
If you see a coin with low daily volume but
high market capitalisation, you most likely see
a manipulation of that coins price.
Developers Activity
The truth is - anyone who knows how to code
can design their cryptocurrency. And that,
unfortunately, comes with a lot of scams. The
majority of successful, or promising, coins are
announced on forums and through a public
software repository such as Github.
26
If a developer is releasing a new crypto-coin,
there should be a history behind that person.
Nobody who is brand new to the network
will join with the new coin announcement.
To come up with a successful idea behind
cryptocurrency, it takes time. Hence, there
should be a visible activity of a particular
developer.
If you are not a coder yourself, then it will be
impossible to judge from a complicated code
whether the coin is legitimate. But there are
other factors to look out for:
Regularity - constant updates about the coin,
new features added to the currency on a
regular basis.
Original Idea - a lot of new altcoins are just
a minor improvement of Bitcoin. How do
you know it is a gold mine? When it brings
something fresh and revolutionary to the
cryptocurrency market.
Activity - if the developer genuinely believes
in a product, he or she will answer questions,
respond to comments and will be available
to help.
Core Wallet - a new altcoin means that no
major wallets will be able to store it; keeping
the currency on an exchange is never a good
option, and a legitimate developer should
release an individually designed wallet.
BITEMYCOIN.COM
White Paper
A White Paper is a document released by a
developer or a core team of a particular coin
that explains to the readers what the new
cryptocurrency is.
It should not only include the code and the
nitty-gritty technical details - it has to explain
to the audience what is innovative about the
coin, what are the current limitations and
what are the further plans.
It is an exposition of a coins
technology and innovations.
White Paper can be difficult to fake because
there are enough experts in the community
who would quickly realise that a coin is
a scam. Think of the White Paper as an
educational or a university paper. You would
want to find all the information, answers to
your questions, plans and references to other
work. That is what you should look for in a
White Paper as well.
The original Bitcoin White Paper from 2008
has multiple references to scholarly works,
and after reading it, there is confidence in the
future of the coin.
Another good thing about the White Paper is
that it can be modified and changed multiple
times. Whats more - the more changes, the
better. It sends a clear signal that a team is
always working on improving the coin
and its technology.
Centralised vs Decentralised
The core of cryptocurrency is being
decentralised and free from any third party
involvement, e.g. government. Bitcoin an
excellent example of such currency. The
public ledger purely controls it, and nobody
has a sole ownership.
When you look at currencies like Ripple or
IOTA, they are still a cryptocurrency but with
a defined property. There is a core team of
developers, CEOs etc. who are managing the
company and the currency. Including, its
circulation and distribution.
A lot of cryptocurrency experts argue that
centralised cryptocurrencies are not the real
ones and the investor never owns them.
However, investing in centralised ICOs
and altcoins usually means investing in the
technology behind it and believing in its
capabilities. They can still be traded just
like Bitcoin and long-term they can become
profitable.
The risk is the same for both of them -
decentralised cryptocoins often become
a hackers pray, while centralised
cryptocurrencies can lead into giving an
ownership of your coins to a third party.
Just like researching the core developers of
decentralised cryptocurrencies, it is crucial
to do a background check on the team or
company that has released a coin. If your
primary goal is to invest in cryptocurrency
and make a profit, the centralised vs
decentralised dilemma shouldnt concern
you as much.
27 BITEMYCOIN.COM
 TOTAL SUPPLY
6,000

4,500

3,000

1,500

NO. COINS
0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54
DAYS
[INSTAMINE COIN]

Instamine v. Premine

A premine cryptocurrency is where a coin is The instamined coined cannot be spotted

being mined is subsequent blocks for a given
period by its core developer. These coins are
usually mined in secret, before launching the
currency publicly to public, e.g. Ripple.
The instamine follows a similar logic,
but it allows the coin to be released and
programmed in a way that can be mined in a
large quantity in a short period.
Both of them have warning signs of a coin to
be a scam - instead of using the traditional
cryptocurrency mining methods, they have
been produced in advance. At the same time,
it is one of the most sensitive signals
to recognise.
straight away - you have to look at charts to
realise that a coin is a scam. With instamines,
though, there is no question mark - stay away
from them. Miners would do that to put those
coins on an exchange as quickly as possible,
but also, they also trade them outside of
official channels.
The bottom line is - look at the ranking and
chart to know if a coin is instamine and stay
away if youre suspicious. But if its premined
- put together all of the above aspects and
try to understand the reasoning behind it.

Often, premined coins are a part of pump

and dump scheme, where a coin just released
is quickly added to an exchange, excited

06
and pumped, until the premined coins
are dumped, leaving investors with empty
wallets or counterfeit coins. But, if you look
at currency like IOTA, which s premined, it
would be a big mistake to disregard it based
on that factor. It works to its advantage to be
premined, so theres no risk of any corporation
or central power to hold power over coins.

28
28 BITEMYCOIN.com
BITEMYCOIN.COM
CHAPTER 7
COIN LIFECYCLE - WHEN TO BUY AND SELL
The golden rule of investing is doing it in
stages and spreading an investment over time.
It is never a good idea to spend at the very
beginning of a coins lifecycle or when a coin
reaches its hype. It takes a lot of research and
community involvement to judge when is the
right time to invest in an altcoin.
STAGE 1: Pre-launch - It is the time to stand
back, read and research as much as possible.
Do not invest yet, do your research
The announcement will likely happen on
forum thread, start following it and see how
it evolves (the coins with the most active
communities will rise to the top)
Ask questions to developers
Read the White Paper (remember, you do not
want invest in a cryptocurrency that does
not have a White Paper) and if you do not
understand something, ask the core developer
Find out who are the core team members
- cryptocurrency creators tend to stay
anonymous but some of them are Doxed
(they revealed their personality) and it is even
better as you will be dealing with a legitimate
group of people
If a developer has a pseudonym, try to
research their network activity and reputation
29
STAGE 2: Launch - Do not invest yet, instead
engage with the community.
It is still not the right time for an investment
The coin should be announced on the official
channel of the network. and there should be a
set timeline of when the coin will be released
or available to mine
The core team should release a wallet and
mining software
Stay active on the network to see the reaction
after the launch and how developers respond
to any questions and how they resolve
potential issues
Message the developer yourself; you want to
stay away from developers who dont interact
with the community directly
Start tracking the coin on the exchange/
ranking platform
STAGE 3: First 6 Months - It is time for your
first investment (10%-20%).
The coin has survived the initial stage of the
first half, increasing in value and reputation
Look for a coin that is available in an exchange
as opposed to via a private network or directly
from a seller
Look for a market performance - rising
volume but do not focus on a highly
fluctuating price
Stay within the coin community and watch
out for any discussions or activities that will
suddenly stop (for the first six months it
should be an alive, daily updated thread)
The core team should release the first major
update to the coin, following what has been
already planned in the White Paper
The currency should start moving in the
promised direction
BITEMYCOIN.COM
STAGE 4: First Year - time to make your first
bigger investment (50%-60%).
By this time you should have interacted with
the community and familiarise yourself with
the management style of core developers
The core team should start looking into
presenting the coin to the real world and
hiring graphic designers, web developers, and
marketing specialists
It is a good time to observe how the team is
dealing with a rising popularity and pressure
to improve the coin - lack of funding is one of
the main reasons for a currency to fail and the
team to become frustrated
Look out if the core team is trying to reach
a wider audience, beyond forum, e.g. Social
Media, advertising etc.
The transaction value should keep on
increasing and so the price; if the transaction
value keeps going up but not the price, it is
the first sign of pump and dump scheme
During this time, you should see the coin
beginning to differentiate itself on the market
You want to make a big chunk of your
investment before the coin becomes
extremely popular and well-known in
the community
STAGE 6: When To Sell - there is no golden
recipe or advice that anyone can give; you
have to set your targets of how much are you
expecting to make
Set yourself a goal of how much are you
expecting to make in ROI
Look at the trend and the growing price - is it
heading towards your goals?
Sell when the coin meets your expected price
to avoid a further risk
Follow the news about the coin and if you see
anything alarming - start thinking
about selling
If the coin is getting a lot of bad press or
attention, it is one of the first signs to sell
Do not sell if the price drops or stays on
a continuous down - that is the nature of
cryptocurrency, and you have to be prepared
to wait for it

STAGE 5: Final Investment - time to put the

last investment (10%-20%).

The point is becoming more and more

prevalent across the public

07
It is easy to spot by a massive increase in price
and growing media interest
Most well-known exchanges will start
showing an interest in the coin
The price will be changing as early adopters
will start investing in the coin, while some will
be already selling it

30 BITEMYCOIN.COM
31 BITEMYCOIN.COM
//: T I P S F O R I N V E S T I N G I N C R Y P T O C U R R E N C Y
//: Keep you cryptocoins off the exchange
and always store them in a secure wallet! An
exchange can get busted anytime.
//: Choose your exchange wisely! There
are more exchanges that you can imagine. Do
not fall for one that is unknown just because
it trades a coin you are interested in - both an
exchange and a coin may be a scam!
//: A cryptocurrency must solve a
problem in life! You do not want to invest in a
copy of an already existing coin. Choose one
that is innovative.
//: Do not invest in the new
cryptocurrency in its first 180 days!
Remember, you are a new investor, and you do
not want to fall for a scam.
//: Do the background check on forums
and within private networks, e.g. Slack or
Reddit. As an investor, you want to get to
know the community.
32
//: Do not diversify too quickly. Start off
with one lesser-known cryptocurrency and
stick to it for a while. Gain your confidence.
//: Do not panic and dont sell as soon
as the price dips! Cryptocurrency market
is extremely volatile, and you have to be
prepared for constant ups and downs.
//: Do not spend too much time trading!
Becoming an investor can be a passionate
endeavour but you need to be tempered and
wise not to get carried away!
//: Set yourself goals and limits. It is
important to decide at the beginning how
much are you willing to invest and what is
your estimated profit.
//: Spend what you can afford to lose.
You have to prepared that a cryptocurrency
investment may come with a significant loss.
Do not put more than you can afford.
BITEMYCOIN.COM
Dis c lai m er

The information contained within this eBook

is strictly for educational purposes. Apply
ideas contained in this eBook at your own risk.
Your results are likely to differ than those of
the author.

We do not guarantee that you will make

any money using the methods and ideas
in this eBook. Any examples in this eBook
should not be interpreted as a promise or
guarantee of earnings. Any claims made of
actual earnings or examples of actual results
can be verified upon request. However, your
level of success in attaining similar results
depends on your level of devotion, time,
knowledge and skills. Since these factors
differ according to individuals, we cannot
guarantee your success or income level.

We have made every effort to ensure the

accuracy of the information in this eBook
at time of publication. However, we do not
guarantee that all of the information in this
eBook is correct or up-to-date. Therefore, we
disclaim any liability to any party for any loss,
damage, or disruption caused by errors or
omissions, whether such errors or omissions
result from information in this eBook,
negligence, or any other reason.

Created by

!
Copyright 2017 by BiteMyCoin
All rights reserved. This book or any portion thereof
may not be reproduced or used in any manner
whatsoever without the express written permission of
the publisher except for the use of brief quotations in a
book review.

33 BITEMYCOIN.COM
References

Antonopoulos, M. A. (2016). The Internet of

Money. Merkle Bloom LLC.

Aziz, A. (2016). How to Day Trade for a Living

(...). CreateSpace Independent Publishing
Platform.

Diedrich, H. (2016). Ethereum: Blockchains,

Digital Assets, Smart Contracts, Decentralized
Autonomous Organizations. CreateSpace
Independent Publishing Platform.

Duncan, J. (2016). Make Money

Cryptocurrency Trading: The Basics. Teamtask
Direct Marketing Ltd.

Eha, B. P. (2017). How Money Got Free. London,

Oneworld Publications.

Lema, P. (2016). Crypto Success. Investing in

Cryptocurrency for long term.

Tapscott, D., Tapsctott A. (2016). Blockchain

Revolution (...). New York, Penguin Random
House.

Tideas, B. (2015). Bitcoin Trading and Investing

(...). Amazon Digital Services LLC

34 BITEMYCOIN.COM