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IAN BALINA

HACKING
INVESTING
WHY BITCOIN, ETHERIUM
AND CRYPTOCURRENCIES

COULD M A K E YO U
A MIL L IO N A I R E
#Hustle2Greatness
IAN BALINA

D
id you know that investing in Bitcoin
and Ethereum could make you a mil-
lionaire?

Imagine you wake up one day, and you have $886,000


in your bank account. You didn’t put any blood, sweat,
and tears to earn them nor did you receive an inher-
itance from an unknown family member. You’ve just
made a small investment that ballooned into a fortune
over time.
That’s what happened to a man from Oslo.

Back in 2009, Christopher Koch learned about Bitcoin


while working on a thesis paper about encryption. The
entire system fascinated him, so he decided to invest
$27 for 5,000 Bitcoins.

Koch quickly forgot about the investment until four


years later when Bitcoin started popping up in the news.
So, he checked his encrypted wallet only to discover
that he was sitting on an $886,000 nest egg.

Unfortunately, not all of us are as lucky as Koch. But,


that doesn’t mean you can’t possibly become a million-
aire by investing in virtual currency. You just need to
understand how they work so that you can maximize
your profits.

This comprehensive guide will teach you everything you


need to know about why you should invest in Bitcoin,
Ethereum, and other altcoins and how to do it.

I will be direct and let you know that I am not a fi-


nancial advisor and invest in cryptocurrencies at your
own risk. I myself, have personally invested $10,500 in
cryptocurrencies four months ago, and it has grown to
be worth about $15,000 in that timespan. This included
a $2,500 investment in Ethereum that I sold off after a
month and a half, at a value of $5,500. The growth of my
portfolio has slowed down the last month or so as Bit-
coin deals with scalability issues (Segwit), that I won’t
address here, as this is a post targeted for beginners.

Let’s dive right in, shall we?


TABLE OF CONTENTS

Chapter 1: The Hype Around Bitcoin


and Ethereum (Ether) 7
Chapter 2: What is Bitcoin? 9
Chapter 3: What is Ethereum? 13
Chapter 4: Bitcoin vs. Ether 15
Chapter 5: Why Bitcoin and Ethereum Matter? 17
Chapter 6: Why Bitcoin, Ethereum,
and Cryptocurrencies Could Make You
a Millionaire? 22
Chapter 7: How to Start Investing in Bitcoin,
Ethereum, and Other
Cryptocurrencies 26
Chapter 8: Useful Resources to Learn More
About Bitcoin, Ethereum,
and Cryptocurrencies 35
Chapter 9: Conclusion 37
1
CHAPTE R

THE HYPE AROUND


BITCOIN AND
ETHEREUM (ETHER)

A
lot of people scoff at the idea of virtual
currency when they first read about it. It
almost seems too good to be true. Howev-
er, after reading more about how it works,
most people get sold on the idea. And, here’s why.

7
Since the first Bitcoin transaction recorded in 2008,
the cryptocurrency was proven to be one of the most
secure investments one could make. Except for 2014
when the price fell to $30 for a short period, Bitcoin
continues to exceed all expectations.

Let’s look at the numbers to understand the hype


around it better. Back in 2015, Bitcoin saw an impres-
sive +20% increase. In 2016, however, the gain spiked to
120%, making the price of the cryptocurrency skyrocket
from $400 per Bitcoin to $1,200 per Bitcoin.

So, it should come as no surprise that Bitcoin is the


world’s most high-profile digital currency right now.

What about Ethereum?

Ethereum is rather new. The first mention of this cryp-


tocurrency appeared in 2013 when Vitalik Buterin, a
Russian programmer, described the technical details
and rationale for Ethereum protocols in a white paper.

The currency was launched in 2015, and although it’s


less than two years on the market, it has already become
Bitcoin’s top rival. In the last 12 months, this virtual
currency has risen from $10 per Ethereum to $20+ per
Ethereum, and it’s estimated to run up to 90% this year.

So, the future sounds bright for those who decide to


invest in Ethereum.

In fact, both virtual currencies seem to have a lot poten-


tial. But to better understand how much potential we’re
talking about, let’s find out more about how they work.

8 I A N BA LI N A . CO M
2
CHAPTE R

WHAT IS BITCOIN?

B
itcoin is the first global, decentralized cur-
rency that allows you to send money from
one person to another without involving a
third party broker, such as a bank. You only
need your computer to make transactions because Bit-
coin is fundamentally software.

As a decentralized currency, Bitcoin isn’t controlled by


anyone. It’s open so that anyone can benefit from it.

9
You might think that the lack of control could mean
chaos, but that’s not true at all. That’s because Block-
chain, the technology behind Bitcoin is one of the most
accurate and secure systems ever created.

HOW DOES BITCOIN WORK?

A blockchain is a ledger that keeps records of digital


transactions. Instead of having a central administrator,
like a bank or the government, blockchain organizes
data in batches called blocks. These data batches use
cryptographic validation to link themselves together.
In other words, each block identifies and references the
previous block by a hash value, forming an unbroken
chain.

Blockchain solves two of the most challenging problems


of digital transactions: controlling the information and
avoiding duplication. When a purchase is carried out,
the ledger records it and sends it out to the entire net-
work. Computers all over the world then compete to
confirm the operation by solving complex math equa-
tions. The first to figure out the answer and validate the
block receives a reward in Bitcoins (this process is called
mining.)

The validated block is timestamped and added to a chain


in chronological order. The entire chain is continually
updated so that it’s always an accurate representation of
who owns what at any given time.

10 I A N BA LI N A . CO M
CHARACTERISTICS OF BITCOIN

G LO BAL

In other words, it has no limits of any kind. You can


send it to anyone across the world with no condition.
Moreover, you don’t depend on a schedule, as it happens
with bank transactions since Bitcoin is available 24/7,
365 days a year.

I R R E V ERS IBLE

Unlike bank operations that can be reversed even


months after they were initiated, a Bitcoin transaction
can’t be turned around by the sender.

LOW FEES

No matter the size of the transaction, you only pay be-


tween half of a cent and five cents.

P R I VAT E

You don’t need to provide any personal information


when paying with Bitcoin. The only information re-
quired is the bitcoin address and the amount you’re
sending.

H AC K I N G I N V ES T I N G 11
SE C URE

The Bitcoin network is cryptographic. So, when you


make a payment, you don’t risk having your identity
stolen since the system doesn’t send any sensitive infor-
mation to the network.

OPEN

Bitcoin transactions are public, everyone can see them.


So, due to this transparency, operations can’t be manip-
ulated.

12 I A N BA LI N A . CO M
3
CHAPTE R

WHAT IS ETHEREUM?

U
nlike Bitcoin, the primary purpose of
Ethereum isn’t to act as a form of cur-
rency but to enable “smart contracts”
between the parts without forcing them
to trust or use a middleman. Smart contracts are com-
puter codes that can facilitate the exchange of money,
property, content, or anything of value. Because these
contracts run on the blockchain, they run just as they
are planned without any possibility of downtime, cen-
sorship or fraud.

13
Ethereum enables developers to build decentralized ap-
plications (or Dap.) Because these computer programs
are made up of code that runs on a blockchain network,
they aren’t controlled by a central entity.

Think of Ethereum as the world’s first decentralized


virtual supercomputer.

HOW DOES ETHEREUM WORK?

Here’s an example that can help you understand


how Ethereum works. When you send a message via
Whatsapp, the message goes through the Whatsapp
data centers. In other words, the content of your mes-
sage gets in the hands of one big company. This system
is called a centralized network of computers.

When you send a message using a decentralized ap-


plication, on the other hand, the messages is sent to a
network of independent computers all over the world
owned by regular people. Every computer does a bit of
the work and receives rewards in the form of a digital
asset called ETHER.

14 I A N BA LI N A . CO M
4
CHAPTE R

BITCOIN VS. ETHER

J
ust like Bitcoin, Ethereum is an open-source
blockchain network. Although there are some
differences between them, the most relevant
distinction you must remember is that they
have different purposes.

Bitcoin offers just a particular application of the block-


chain technology and is designed as a peer-to-peer sys-
tem that facilitates digital transactions. Ethereum, on

15
the other hand, is a platform for running applications
on a distributed network that allows smart contracts be-
tween individuals worldwide.

In the Bitcoin blockchain, miners work for bitcoins


while in the Ethereum one, miners receive Ether, a dig-
ital asset that fuels the network. This currency can also
be used to pay for services and transaction fees on the
Ethereum network.

So, remember: Bitcoin and Ethereum have different


purposes and fulfill different needs. As such, Bitcoin
and Ethereum are separate protocols, so you can’t com-
plete a transaction from one to another.

16 I A N BA LI N A . CO M
5
CHAPTE R

WHY BITCOIN AND


ETHEREUM MATTER?

I
t has become common today to speak approvingly
of blockchain but to dismiss Bitcoin and Ether.
Financial magazines write about how banks and
investors race to harness the power of blockchain
but treat cryptocurrencies with skepticism.

17
However, they confuse technology with valuable appli-
cations.

Here’s why Bitcoin and Ether are worth your attention:

DECENTRALIZED FORMS
OF CURRENCY

What makes these two cryptocurrencies interesting is


that they work in a decentralized manner. Simply put,
there’s no central entity (like banks or governments)
that prints money. Instead, the money is being minted
by the people (miners).

Because Bitcoin is globally distributed across thousands


of nodes with no single point of failure, the system can’t
be shut down.

Think about how BitTorrent works to understand the


technology behind Bitcoin better. BitTorrent was de-
signed to decentralize information so that data can be
sent more quickly and efficiently. The protocol breaks
each data into multiple blocks and sends them to dif-
ferent users. The users then share these pieces of data
with each other, dramatically reducing the load for the
original distributor of the information.

Bitcoin employs the same logic.

Another great thing about Bitcoin is that it’s censorship


resistant. Your Bitcoin transactions can’t be blocked,
censored or altered by anyone even if they disagree with
what you’re doing. Moreover, no one can prevent you
from interacting with the bitcoin network.

Unlike other currencies, you own Bitcoin. In oth-


er words, you can’t wake up one day only to discover

18 I A N BA LI N A . CO M
that your accounts have been frozen. Bitcoin is the only
electronic cash system in which your account is entirely
yours.

Take PayPal as an example. If the company decides, for


some reason, that your account has been misused, it has
the power to freeze all of the assets held in the account
without consulting you.

But, because no one else controls your Bitcoin account


except you, the platform protects your wealth against
third parties. Thus, central governments can’t take it
away as it can happen with standard currencies.

Here’s the perfect example to illustrate the fragility of


the traditional bank system.

The 2012-2013 Cypriot crisis when the government


froze and seized assets in response to a bailout deal with
the European Union (EU) left many questioning the
safety of the banking system. The interest in Bitcoin
skyrocketed as soon as Cyprus began discussing tap-
ping deposits as part of the bailout. Investors and reg-
ular people alike quickly realized that a decentralized
money system is the best way to keep their assets secure.

BITCOIN IS LIMITED IN SUPPLY,


LIKE GOLD

Most people still have a difficult time understanding


what Bitcoin is or why it has value. A good way to look
at it is to compare it to gold.

Just like gold, the cryptocurrency has a limited supply.


The total number of Bitcoins that will ever be produced
is set at 21,000,000 coins. It might not sound like much,
but it’s quite enough.

H AC K I N G I N V ES T I N G 19
To date, there are already 11 million Bitcoins, but it’s
estimated that it will take more than 100 years before
all 21 million coins will be mined out.

Because all Bitcoins are created and handed out in a


predictable manner, the risk of inflation is almost non-
existent.

One of the things most people get wrong about Bitcoin


is that they assume that since there’s a finite amount of
coins that can ever exist, then the currency has limita-
tions. But, that’s not true at all since all transactions can
be denominated in smaller sub-units of bitcoin. Think
about them as bits. One bitcoin contains 1,000,000 bits.

You can divide a bitcoin up to eight decimal places –


that is 0.00000001. You can go even lower than that if
there’s ever the need.

BORDERLESS AND HAVE LOW


TRANSACTION FEES

You can send and receive bitcoins anywhere in the world,


at any time. There are no border limits, no vacations or
schedule restrictions. And, probably the best part about
it, there is no bureaucracy.

As I’ve mentioned above, you are in full control of your


money. You can even choose your fees since most wal-
lets allow you to control how much it charges you for a
transaction. Unlike any other payment system, you don’t
have to pay any fees when you receive bitcoins.

Since it’s universal, you can pay with bitcoins from any-
where in the world. That is particularly useful for coun-
tries confronted with inflation and payment problems.
Latin America is an excellent example of people turning

20 I A N BA LI N A . CO M
to Bitcoin in response to the recent financial crisis they
are facing. Being a universal currency, Bitcoin allowed
Latin consumers to shop and send money internation-
ally. Global companies, such as Walmart or Apple that
might not accept local payment options from Latin
American can now use the cryptocurrency to continue
to reach consumers in the region.

STORING VALUE FROM UNSTABLE


CURRENCIES

Chinese stocks slumped sharply at the beginning of


January 2016, sending shockwaves around the world.
The index performance for Dow Jones Industrial Av-
erage was down 400 points in the first weeks of 2016,
causing panic amid Wall Street investors.

In response to the depreciating Yuan, Chinese investors


turned to Bitcoin to keep their assets afloat. According
to MarketWatch.com trading volume in China surged
toward the end of the year with nearly 99% of glob-
al trades executed on OKcoin, BTCChina, and Huobi,
three of the largest Chinese exchanges. Investors paid as
much as $675 for a single Bitcoin.

H AC K I N G I N V ES T I N G 21
6
CHAPTE R

WHY BITCOIN,
ETHEREUM, AND
CRYPTOCURRENCIES
COULD MAKE YOU A
MILLIONAIRE?

22
B
uying virtual currencies might seem like too
much of a risk. But, if you think about it for
a second, it’s one of the soundest investments
you could make.

Imagine if you had taken the risk and bought $100


worth of Bitcoin in 2011 at $0.33 per Bitcoin. Now it
would be worth $399,600 at $1,200 per Bitcoin.

While you can’t turn back time and, just like Christo-
pher Koch, spend a few bucks on Bitcoin and wake up
wealthy four years later, you can still make a lot of mon-
ey investing in cryptocurrencies now.

THE VALUE OF THE US DOLLAR


IS DEPRECIATING

Have you ever wonder why you just can’t seem to stretch
your dollars enough anymore? The explanation is rather
simple: the value of the US dollar is declining.

Until 1914 the US dollar had a fixed value. For example,


if you saved ten dollars in 1790, you could still buy the
same amount of goods with your savings 100 years later.
Nowadays, however, money seems to be worth less and
less every year.

In 1913, the United States introduced the Federal Re-


serve Banking system, the first step toward dissolving
the gold standard. Until that moment, the dollar was
backed by gold. So, for example, you could exchange
a $20 bill for $20 worth of gold. The currency supply
was tied to the gold supply. Because there was a limited
amount of gold, there was a limited sum of money in
the system, as well. As a result, the dollar was highly
valuable because it had a real, tangible value backing it.

H AC K I N G I N V ES T I N G 23
However, starting on 1913, the dollar would only be
partially backed by gold. As time went by, the paper
money supply expanded faster than the country’s gold
supply, and the US dollar quickly lost its value.

The more money printed, the more worthless it became.


And this trend continues. As the U.S. persistently de-
stroys the value of the dollar by overprinting, foreign
nations are losing confidence in the dollar and its role
as a reserve currency.

GLOBAL ENTERPRISES GIVE BITCOIN


AND ETHEREUM STAMPS OF APPROVAL

One of the biggest companies in the world is betting


on virtual currencies. IBM has announced a variety of
partnerships and initiatives related to the blockchain.
According to an IBM study, 15% of the banks surveyed
plan to use blockchain by 2017 while 91% of them are
already investing in blockchain for deposit-taking.

Finance isn’t the only opportunity IBM sees with block-


chain. The company believes that the technology could
revolutionize the world.

However, IBM isn’t the only big company interested


in blockchain technology. Microsoft doubled down on
Ethereum with a new blockchain product, the Ethe-
reum Consortium Blockchain Network, a project that
aims at helping industries work together to build in-
creasingly complex consortia that would leverage the
network effects of shared, immutable ledgers. Simply
put, this consortium will allow groups of companies to
deploy a private Ethereum Network with a single click.

24 I A N BA LI N A . CO M
VIRTUAL CURRENCIES COULD BE
REPLACEMENTS FOR GOLD

It might be hard to believe, but it’s a real possibility,


considering that Bitcoin is now worth more than gold.
For the first time, the price of one Bitcoin has surpassed
the price of one ounce of gold.

Most of the early adopters claimed that Bitcoin would


eventually replace gold as the preferred alternative store
of value. If it didn’t happen yet, it isn’t because Bitcoin
lacks the capability to become the new “gold standard”
but because it’s still rather complicated to invest in the
cryptocurrency. Its volatile price is another factor that
made it hard for Bitcoin to become a reliable alternative
asset.

But, now that one Bitcoin is worth more than one ounce
of gold, it could be a sign that it could rival gold as a
safe-haven.

H AC K I N G I N V ES T I N G 25
7
CHAPTE R

HOW TO START
INVESTING IN
BITCOIN, ETHEREUM,
AND OTHER
CRYPTOCURRENCIES

26
T
here are multiple ways to invest in virtual
currencies, and it all depends on what you
want. Here are the basics of buying and in-
vesting in Bitcoin, Ethereum and other al-
ternative cryptocurrencies (altcoins).

COINBASE

If you’re new to cryptocurrencies, then Coinbase is the


best way to get started.

Coinbase is an online exchange platform for trans-


ferring, buying, selling, and storing cryptocurrency. Its
creators wanted to develop an open system that would
allow people to convert digital currency into their local
currency. In 2013, Coinbase became the top-funded
Bitcoin startup, raising over $25 million.

If you look at some of its advantages, it’s easy to under-


stand why Coinbase gained so much traction in such a
short period.

DD It makes it incredibly easy to buy and sell digital


currency.

DD You don’t have to worry about security or back-


ups.

DD One simple interface covers everything you need,


from wallet and exchange to merchant tools.

H AC K I N G I N V ES T I N G 27
HOW DOES IT WORK ?

So, how does Coinbase work? Let’s take a look at the


steps you need to take to create an account and start
using it:

C R E ATE AN ACCOUN T

Head over to coinbase.com and set up your account.


Once you confirm your email address, you can visit the
Buy/Sell Bitcoin Section. But, before you can purchase
any Bitcoins, you’ll need to take a few more steps.

V E R I FY YOUR BANK ACCO U N T

You’ll be asked to link a bank account to Coinbase. With


this account, you can convert US dollars to Bitcoins.
Don’t worry, Coinbase will verify your bank account to
make sure everything is safe.

CO NFIRM YOUR PHON E N U MB ER

When you log into your Coinbase account, you will be


required to enter a password and a security token you’ll
receive on your phone. Thus, no one else besides you will
be able to access your account. Coinbase will also verify
your phone number for additional security.

28 I A N BA LI N A . CO M
P URC HASE YOUR FIR S T B ITCO IN S

Now that everything is in place, you can open the Buy


Bitcoin Page and enter the amount you want to buy.
If you want to sell Bitcoins, then you should go to the
Sells page, enter the quantity, select a wallet you wish to
sell from and then choose the account you want to de-
posit the coins. Once ready, all you need to do is confirm
the order.

If you signup for Coinbase using this link, and buy or


sell $100 of digital currency or more, both you and I can
earn $10 of free bitcoin!

GDAX AND GEMINI

If you’ve already tested the waters and decided that Bit-


coin is something worth investing in, then you need to
learn how to use GDAX and Gemini. Just like Coin-
base, they are exchange trading platforms that allow you
to buy, sell, and store cryptocurrencies. However, these
systems are more complex than Coinbase and perfect
for day trading. Moreover, they have lower transaction
fees than Coinbase.

Let’s take a look at both of them to understand how


they work.

G DA X

GDAX (Global Digital Asset Exchange) is a service


provided by Coinbase that offers a secure and easy way
for traders of all levels to buy and sell digital assets on-
line and instantly, across six trading pairs:

H AC K I N G I N V ES T I N G 29
DD BTC (Bitcoin) to USD

DD BTC to EUR

DD BTC to GBP

DD ETH (Ether) to USD

DD ETH to BTC

So, while Coinbase is a place for consumers to buy, sell,


and store digital currency easily, GDAX is an exchange
for professionals to trade digital assets. Coinbase creat-
ed GDAX because it identified a need in the market for
a more controlled exchange to trade Bitcoin and Ether.

HOW TO CREAT E AN ACCO U N T

Go to GDAX.com and select “Create Account.” Add


all the necessary information and click the”Create” but-
ton once you’re ready. If you already have a Coinbase
account, GDAX will have you sign in with the same
account, as they both are owned and operated by the
same company, Coinbase.

Verify your email address and provide a valid phone


number. Next, you’ll need to choose between an ‘Indi-
vidual’ and ‘Institutional’ account. Based on the account
type selected, you will need to provide more informa-
tion about yourself or the institution.

You can link your bank account so that you can fund
your trading account with USD, EUR or GBP. You can
skip this step if you only wish to deposit bitcoins or
Ether.

30 I A N BA LI N A . CO M
HOW TO MAKE DEPO S IT S

GDAX allows you to deposit or withdraw digital cur-


rencies. To make a deposit, all you need to do is send
bitcoins to your account from a wallet provider or an-
other exchange platform. Here’s how:

Open GDAX.com/trade and select the currency you


want to deposit from the “Select Product” menu. For ex-
ample, if you want to make a down payment of bitcoins,
choose BTC/USD or BTC/ETH. Hit the Deposit
button at the top left and then the address tabs. Copy
the account address you see in the tab. This address will
be permanently associated with your GDAX account.
Open the wallet you want to deposit currency from and
send the amount you wish to the GDAX account ad-
dress provided.

HOW TO WIT HDRAW DIGITA L CU RREN CY

If you want to withdraw Bitcoins or Ether to another


exchange or wallet, you’ll first need to get a destination
address from that service.

Here’s how.

Open gdax.com/trade and choose a trading pair with


the currency you wish to withdraw. Enter the address
for the external service and the amount you want to
withdraw from your account.

H AC K I N G I N V ES T I N G 31
HOW TO BUY AND SE LL U S IN G GDA X

Besides depositing or withdrawing funds, you also have


the option to buy and sell digital currencies. To place a
market order, you need to select the “Market” tab above
the buy/sell buttons. Then Choose “Buy” or “Sell” and
enter the size of your order.

If for example, you select “Buy,” enter 500 as the amount


and set the units to US dollars, you will buy five hundred
dollars worth of the cryptocurrency you have selected.

G DA X ALLOWS YOU TO CO N T RO L YO U R LO S S ES

One of the main benefits of GDAX is that it provides


more control over the transaction process. In fact, the
platform even allows you to control your losses. All you
have to do is select the ‘Stop’ button.

For instance, let’s imagine that you’ve purchased one


bitcoin for $600 and you plan to sell it when the price
goes up. The price, however, begins to drop, so you place
a sell stop order at $590. The price drops 10% to $550,
but because you set a stop at $590, your loss is limited
to less than 2%. The same rule applies when you sell
bitcoins and want to limit your losses if things don’t go
as planned.

GEMINI

Gemini is another cryptocurrency exchange that has


seen a massive expansion in the last years. As a world-
class digital asset exchange, it provides an electronic
trading platform to both individual and institutional
customers.

32 I A N BA LI N A . CO M
The process of registering and using Gemini is similar
to GDAX. However, there are a few notable differences.

For starters, Gemini allows you only to deposit and


withdraw US Dollars, Bitcoins, and Ether. Unlike
GDAX where you have six trading pairs, Gemini pro-
vides only four: USD to BTC, USD to ETH, BTC to
ETH, and ETH to BTC.

On the other hand, with Gemini, you can make a de-


posit and then use the funds within a matter of seconds.
So, you don’t have to wait a few days for the transaction
to be completed as it happens with GDAX. Howev-
er, with Gemini, you can only trade Bitcoin and Ether,
while with GDAX you can also trade Litecoin;

I personally use GDAX to purchase my Bitcoin or Ether


and then transfer it Poloniex, where I do my investing
and trading.

POLONIEX AND BITTREX

Let’s say the gold rush for making a ton of money on


Bitcoin and Ethereum is over, what can one do?

No need to worry, there are numerous small virtual cur-


rencies, less well-known, that are actually growing faster
than Bitcoin and Ethereum. In general, Bitcoin is the
800-pound gorilla in the room and all other non-Bit-
coin currencies are referred to as Altcoins.

If you head over to Coin Market Cap, you can see a


list of 100 cryptocurrencies. Including Bitcoin, they all
total up to a whopping $28 billion dollar market cap. In
other words, a lot of people are taking their chances at
these currencies.

H AC K I N G I N V ES T I N G 33
W HE R E TO INVES T IN A LTCO IN S ?

There are numerous other smaller exchanges to invest


in altcoins. I personally, use Poloniex and Bittrex to ex-
change bitcoin into other altcoins.

One thing to note is that Poloniex and Bitttrex are


cryptocurrency exchanges. You can ONLY exchange
cryptocurrencies for other cryptocurrencies. You cannot
purchase fiat currencies on Poloniex, you will have to
do that at a different site like GDAX or Gemini. In
other words, you cannot buy currencies on there using
the dollar, euro, yen, etc. You can only make purchases
(to exchange a currency) with bitcoin, ethereum, and a
few others; bitcoin is the universal cryptocurrency for
exchanging to other currencies.

My current process looks something like this.

I purchase Bitcoin (BTC) on GDAX, as opposed to


Coinbase since GDAX has lower fees.

I then transfer my Bitcoin to Poloniex and exchange


my BTC for other cryptocurrencies like Ripple (XRP),
Stratis (STRAT), Dash (DASH), etc.

If I need to cash out, I can do so by selling the currency


and getting Bitcoin back, which I can then send back
to GDAX and withdraw into my bank account as US
dollars.

Somewhat complex and tedious, but no barrier of entry


will stop me from making money.

34 I A N BA LI N A . CO M
8
CHAPTE R

USEFUL RESOURCES
TO LEARN MORE
ABOUT BITCOIN,
ETHEREUM, AND
CRYPTOCURRENCIES

35
T
his guide is a great starting point if you are
new to the world of cryptocurrencies. By
the time you reach this point, you know
what Bitcoin and Ethereum are, how they
evolved and how they work. Most importantly, you un-
derstand why they are good investment opportunities.
However, you can never learn enough, especially since
virtual currencies are volatile and sensitive to what hap-
pens in the world.

We live in one of the most complex and challenging


business environments the world has ever seen. New
and competitive markets continually emerge while old
ones slowly succumb. The best way to keep pace with
the rapid changes is to be informed. Information means
power in this day and age.

So, I encourage you to go beyond this guide and learn


more about Bitcoin and Ethereum so that when you are
ready to invest, you can make the best decisions.

Here is a list of some of the best resources about cryp-


tocurrencies:

DIGITAL GOLD

This book written by Nathaniel Popper describes the


rise of the Bitcoin technology through the eyes of in-
teresting characters, including the Bitcoin’s mysterious
creator, Satoshi Nakamoto.

THE COINTELEGRAPH

The Cointelegraph covers Fintech, Blockchain, and


Bitcoin bringing you the latest news and analyses on
the future of money.

36 I A N BA LI N A . CO M
9
CHAPTE R

CONCLUSION

W
ith people losing faith in the tradi-
tional banking system, virtual cur-
rencies are beginning to become a
more appealing option for both con-
sumers and companies. So, it should come as no surprise
that Bitcoin is increasing in value and is even consid-
ered a reliable alternative to the gold standard.

Ethereum, another open-source, blockchain-based plat-


form is gaining traction too. Newer than Bitcoin, Ethe-
reum focuses on something new: it’s not only about

37
payments in electronic cash, it’s also about the creation
of smart contracts. So, while Bitcoin is a digital curren-
cy, Ethereum is a platform for running applications on
a distributed network.

The reason there’s such a big hype around Bitcoin and


Ethereum is simple. People are tired of entrusting their
valuable information, whether we’re talking about cur-
rency or data, to a single big company. Unlike traditional
systems, both Bitcoin and Ethereum are decentralized,
meaning that you can use them without involving an
intermediate. You have control over the entire process.
There is barely any time or border limit since these plat-
forms and the currencies they are using are universal.

Bitcoin and Ethereum can provide significant advan-


tages, especially in today’s socioeconomic realities.
However, keep in mind that this guide isn’t by any mean
intended to be used as financial advice. I am not a finan-
cial advisor. I am just an active participant who has Bit-
coin and cryptocurrencies in my investment portfolio
with a bullish outlook on its future. And I want to share
this with you because I believe it’s the kind of informa-
tion we can all benefit from one day.

Although I am not a financial adviser, one thing is very


clear to me: Bitcoin, Ethereum, and cryptocurrencies
are the new gold rush. So, don’t get left behind! Now is
your chance to become a millionaire.

If after reading this guide and other expert resources


you decided to invest in virtual currencies, I recommend
you start with Coinbase. As I already explained, it’s easy
to use, safe, and free.

So, sign up with this link here, and we both get $10 free.
Then let me know how your investment is doing.

38 I A N BA LI N A . CO M
Thank you!

I know reading this entire guide in its entirety wasn’t easy.


But the good thing is you took action and finished it.

The number one thing that stops people from not creat-
ing a six figure career and lifestyle is that they don’t take
action. They don’t start and finish things.

You have just separated yourself from 95% of people in


the world by seeking this information. Now the ques-
tion is will you separate yourself from the 95% of people
that read this guide and execute on everything in here
and create the six figure lifestyle you desire?

By definition, not everybody can be great. Great things


will always remain for the great. To achieve greatness, you
have to go out and take it. It won’t just fall in your lap.

I hope I have inspired you to work on creating a six fig-


ure lifestyle actively.

Be sure to follow me on social media, where I’m ac-


tive daily . Especially on Instagram and Twitter, where
I share my live crypto trades, portfolio, and thoughts.

Instagram: @diaryofamademan

Facebook: facebook.com/ianbalina

YouTube: youtube.com/HackingTheSystem

Snapchat: @diaryofamademan

Twitter: @diaryofamademan

Quora: quora.com/profile/Ian-Balina

Thank you!

Ian Balina

#Hustle2Greatness

H AC K I N G I N V ES T I N G 39

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