What is Bitcoin & Why does
cryptocurrency have value?
All Your Basic Crypto Questions Answered
Cryptocurrency Resources For Complete Beginners
What is cryptocurrency?
Is cryptocurrency the ultimate investor honey trap? Or is cryptocurrency the future of money as we know it?
If you are completely new to cryptocurrency, terms like ‘blockchain’ and ‘decentralized distribution’ can seem confusing. However, understanding the basic benefits of cryptocurrency is easy. – You just need someone who speaks your language.
To the right, we’ve compiled an easy to interpret beginners guide to Bitcoin and Litecoin. If you would like to learn the basic fundamentals which underpin why cryptocurrecy has value, we’d recommend starting by reading ‘What is Bitcoin?’
Below, you will also find other free resources and (not to be taken as professional financial advice) cryptocurrency investment tips.
What Cryptocurrency is not
Cryptocurrency is Very Different to How it is Portrayed in the Media
Investing in cryptocurrency is not a guaranteed way to get rich quick.
Over 90% of new-to-market traders & investors lose their principle investment within 3 -12 months.
Coins like Bitcoin are not scams or chiefly used by Dark Web criminals.
Investing in cryptocurrency can be advantageous, so long as investing is undertaken responsibly.
Click here for our free basic cryptocurrency trading and investing guide
Invest in cryptocurrency like you do your future
Learn how to spot Cryptocurrency scams
Is Bitcoin Cash and Bitcoin Cash SV the same as Bitcoin? Are ICOs worth investing in? Is it true that Litecoin is doomed?
Miss-information and scams are prevalent in the cryptosphere. Because of poor regulation, almost anyone can launch and promote new ICO coins. Opportunist entrepreneurs have also begun to make a habit of co-opting existing cryptocurrency brand identities. Many then go on to publish false claims that coins they bring to market are legitimate upgrades of original coins like Bitcoin and Litecoin.
In 2017. a group of Bitcoin developers connected to Bitcoin mining device manufacturer Bitmain, decided that they wanted to release their own version of Bitcon called Bitcoin Cash. This should not have affected the cryptocurrency market in any way. However, Bitcoin Cash then teamed up with Roger Ver, the owner of the domain name Bitcoin.com.
Quickly, Bitcoin.com (which is in no way connected to Bitcoin) started spreading fake news. It and Bitcoin Cash attempted to catch new Bitcoin investors and convince them that Bitcoin Cash is the real Bitcoin.
One year later, an Australian computer scientist claiming to be the original creator of Bitcoin, released a third Bitcoin clone called Bitcoin SV. Developers behind Bitcoin SV claim that it and not Bitcoin or Bitcoin Cash is the real Bitcoin.
Top altcoin Litecoin has also also been imitated. In April 2018, a group of developers not connected to Litecoin, released a new coin called Litecoin Cash.
If any of these projects were legitimate, they would not co-opt existing coin brand names. Nor would they engage in smear campaigns against cryptocurencies they claim to be upgrades of. All are brought to market by corporations looking to cash in on existing coin brands. Moreover, in traditional finance this would be considered fraud. When investing in Bitcoin or Litecoin, avoid confusion by only buying coins with the official price ticker BTC and LTC.
How to invest in altcoins & ico coins safely
Despite the prevalence of scam coins and opportunists co-opting existing coin brand names, it is possible to invest (relatively) safely in altcoins and ICOs.
Many altcoins like DASH, DigiByte, Cardano and Ripple XRP, are backed by years of consistent development. Several (reputable) ICO coins also do often return significant profits to investors.
To stay safer when investing in any cryptocurrency, always follow the following basic rules:
- Never invest in coins which are not backed by several years of development, or new coins which don’t have a peer reviewed whitepaper
- Never buy new ICO coins without researching and running background checks on teams bringing coins to market
- Try to discover if an ICO is running a bounty scheme which pays people to create positive forum and news content. If it is, it’s a scam
- Read coin whitepapers. Poor spelling, grammar, and repetition of key concepts and buzzwords, is a sure sign not to invest
Get a hardware wallet & learn how to use it
Before investing in any cryptocurrency, it is imperative to learn how to store coins safely.
When you invest in cryptocurrency, you become your own bank. Coins can not be recovered if you ever lose access to your app wallet or coin private keys. Bitcoin, Litecoin, and all other coins, also need to be stored slightly differently. For this reason, we recommend that consumer investors invest in a reliable and easy to backup hardware wallet like the Ledger Nano S.
All hardware wallets should also only ever be purchased directly from wallet manufacturers.