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in this vidoe you learn about 10 secretes of crypto currency. cryptocurrency will be very popular nowadays like bitcoin. we can earn money from home.
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#crypto
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in this vidoe you learn about 10 secretes of crypto currency. cryptocurrency will be very popular nowadays like bitcoin. we can earn money from home.
hope you like the video kindly share it with your friends.
#bitcoin
#crypto
#learning
Category
🤖
TechTranscript
00:00:00Hello there, and welcome to the Cryptocurrency Secrets module.
00:00:05I'm sure many of you are curious of this so-called 21st century money of the future.
00:00:11Congratulations, because you've come to the right place,
00:00:14and I applaud you for taking action by going through this course as the future of cryptocurrency looks bright ahead.
00:00:21This video is broken down to eight chapters,
00:00:24which explains the important facts as well as the tricks of the trade
00:00:28that you'll need to know about this digital currency.
00:00:32I promise you by the end of this video you'll know more about cryptocurrency than most people out there.
00:00:38This means you'll be ready to kickstart your very own cryptocurrency portfolio when you've completed this course.
00:00:45For the first chapter, we'll be covering five topics.
00:00:491. What is cryptocurrency?
00:00:512. How do cryptocurrencies work?
00:00:543. How are the cryptocurrencies' value determined?
00:00:584. What is cryptocurrency used for?
00:01:025. Why cryptocurrency?
00:01:05What is cryptocurrency?
00:01:07This is one of the most frequently asked questions out there.
00:01:11What is cryptocurrency?
00:01:13To make it simple, cryptocurrency is a digital version of money, where the transactions are done online.
00:01:20A cryptocurrency is a medium of exchange just like your normal everyday currency, such as the U.S. dollar,
00:01:27but designed for the purpose of exchanging digital information through a process known as cryptography.
00:01:33The first ever successful cryptocurrency emerged from the invention of Bitcoin by Satoshi Nakamoto.
00:01:41This was then followed by the birth of other types of cryptocurrencies competing against Bitcoin.
00:01:48So, how do cryptocurrencies work?
00:01:51The reason why cryptocurrencies are in such demand right now is because Satoshi Nakamoto successfully found a way to build a decentralized digital cash system.
00:02:03Now, what is a decentralized cash system?
00:02:06A decentralized cash system means the network is powered by its users, without having any third party, central authority, or middleman controlling it.
00:02:16Neither the central bank nor the government have power over this system.
00:02:21The problem with a centralized network in a payment system is the so-called double spending.
00:02:26Double spending happens when one entity spends the same amount twice.
00:02:31For example, when you purchase things online, you have to incur for unnecessary expensive transaction fees.
00:02:38Usually, this is done by a central server that keeps track of your balances.
00:02:43This is most commonly known as the blockchain technology.
00:02:47Cryptocurrency is derived from the word cryptography, which refers to the consensus-keeping process secured by strong cryptography.
00:02:57Blockchain technology functions in managing and maintaining a growing set of data blocks.
00:03:03And this is by using the decentralized, or known as the P2P, peer-to-peer network.
00:03:10In blockchain, once a piece of data is recorded, it cannot be edited or changed.
00:03:16To put it in simpler terms, it enables you to send a gold coin via email.
00:03:21The P2P network is a consensus network, which allows a new payment system and the transactions of new digital money.
00:03:29Let's illustrate an example.
00:03:31A cryptocurrency like Bitcoin consists of its own network of peers.
00:03:36Every peer has a record of the complete history of all transactions, as well as the balance of every account.
00:03:43By the end of every transaction, upon confirmation, the transaction is known almost immediately by the whole network.
00:03:51A transaction includes a process where A gives X amount of Bitcoins to B, and is signed by A's private key.
00:04:00After signed, a transaction is broadcast to the network.
00:04:04The information is sent from one peer to every other peer on the network.
00:04:09Confirmation is a critical stage in the cryptocurrency system.
00:04:13Confirmation is everything.
00:04:15When the transaction is not confirmed, it has the possibility of being hacked and forged.
00:04:21When a transaction is confirmed, it is set in stone, it can't be reversed.
00:04:26It's impossible to be hacked, and it's not forgable, as it is part of a permanent record of the historical transaction.
00:04:33The blockchain
00:04:35The blockchain can be likened to an online ledger where all transactions are recorded and made visible to the whole network.
00:04:43This comes to show that cryptocurrencies are not secured by people or trust, but by complex mathematical equations.
00:04:51It is very secure, and it's highly unlikely that the address of a currency is compromised.
00:04:57Only miners are able to confirm a transaction.
00:05:01This is their role in the cryptocurrency network.
00:05:04They record transactions, verify them, and disperse the transactional information in the network.
00:05:10For every completed transaction monitored and facilitated by the miners,
00:05:15they are rewarded with a token of cryptocurrency, for instance, with Bitcoins.
00:05:21Since miners play a major role in the cryptocurrency system, let's look at their role in more detail.
00:05:27What are miners doing?
00:05:29First and foremost, principally, anyone can be a miner.
00:05:33Miners are needed because of the nature of the decentralized network where they have no authority to delegate tasks,
00:05:40and the cryptocurrency needs some kind of system to prevent any form of network abuse.
00:05:45For instance, a person may create thousands of peers and spread forged transactions.
00:05:51It will disrupt the system immediately.
00:05:54In order for you to be a miner, you would need to solve a cryptologic puzzle,
00:05:58which is a set of very complex mathematical questions set by Satoshi Nakamoto himself.
00:06:04If you successfully solve the puzzle as a miner, you can build a block and add it to the blockchain.
00:06:11The miner is also given permission to add a cryptocurrency transaction to the system,
00:06:16which automatically grants him a specific number of Bitcoins.
00:06:20This is the only way to create valid Bitcoins.
00:06:24Bitcoins can only be generated if a miner can solve a cryptographic puzzle.
00:06:29The level of difficulty increases with the amount of computer power the miners invest.
00:06:34How are the cryptocurrencies' value determined?
00:06:37The value of cryptocurrencies are dependent on the market,
00:06:41where the prices of various cryptocurrencies vary a lot and is one of the most fluctuating and volatile markets to date.
00:06:49The price of cryptocurrencies, like any other product, is dependent on the demand and the supply.
00:06:55If more people demand a particular currency, and it is short in supply, then the value increases.
00:07:02More units are mined by miners to balance the flow.
00:07:05However, most currencies limit the supply of their tokens.
00:07:09For instance, the total amount of Bitcoin issued is only 21 million.
00:07:14Therefore, Bitcoin's supply will decrease in time and will reach its final number by 2140.
00:07:22It also explains why Bitcoin's value is higher as compared to other cryptocurrencies.
00:07:28Now you must be wondering, what is cryptocurrency used for?
00:07:33Cryptocurrencies can be spent for different purposes, and the best part is, all transactions are completed online.
00:07:42There are three different transactions that can be performed when using cryptocurrency.
00:07:471. Bitcoin trading
00:07:492. Personal spending
00:07:513. Crowdfunding
00:07:53First is Bitcoin trading.
00:07:55Bitcoin trading can be very profitable for both professionals and beginners.
00:08:00The market is new, where arbitrage and margin trading is widely available.
00:08:05The currency's high volatility has also played a major role in bringing new investors to the trading market.
00:08:12Compared to other financial currencies, Bitcoin has very little barrier to entry.
00:08:17If you already own Bitcoin, no verification is required and you can start trading almost instantly.
00:08:24Moreover, Bitcoin is not fiat currency.
00:08:28This simply means the price is not related to the economy or policies of any single country.
00:08:34And unlike stock markets, there are no official Bitcoin exchanges.
00:08:39Instead, hundreds of Bitcoin exchanges operate 24x7 around the world.
00:08:44Because of no official exchanges, this results in no official Bitcoin price,
00:08:49where the currency is known for its rapid and frequent price movements.
00:08:54Second is personal spending.
00:08:56You can use Bitcoin to purchase almost anything, from buying cars to traveling the world.
00:09:02In December 2013, Tesla Model S was purchased for a reported 91.4 Bitcoins.
00:09:10The dealer located in California continues to accept Bitcoin as a means of payment.
00:09:16They have since managed to sell a Lamborghini Gallardo for 216.8 Bitcoin.
00:09:23You can also travel the world using Bitcoins.
00:09:27Best head to www.cheapair.com.
00:09:32On the 22nd of November 2013, they announced that they would be the first online travel agency accepting Bitcoin.
00:09:40You are able to purchase flights, hotels, car rentals and cruises.
00:09:44You can even book the whole package.
00:09:47Cryptocurrency also provides the chance for you to give back to society.
00:09:52How?
00:09:53By crowdfunding, you are able to be a part of someone's success story by donating to a crypto crowdfunding project.
00:10:00Companies such as Lighthouse have built their crowdfunding platform using Bitcoin.
00:10:06So the perks of donating through this system are you will not be charged for your donation
00:10:11and funds will not be released unless the project meets its criteria.
00:10:15You are also able to withdraw from the campaign before its completion.
00:10:20You have complete control over the donation.
00:10:23Examples of successful funding campaigns are from Dogecoin,
00:10:27which includes campaigns run for NASCAR driver John Wise.
00:10:32The question is why cryptocurrency?
00:10:35Apart from cryptocurrency being very secure and is run through a decentralized network,
00:10:41there are other properties which projects why cryptocurrencies may be the most talked about topic in town.
00:10:48It has also been considered as potentially an investment vehicle which may garner massive returns.
00:10:54Have you heard of Eric Finman?
00:10:56He is the teenage Bitcoin millionaire who started picking up Bitcoin at only 12 bucks a piece
00:11:02back in May 2011 when he was just 12 years old.
00:11:06He received the Bitcoin as a tip from his brother and a $1,000 gift from his grandmother.
00:11:13Now he reportedly owns 403 Bitcoins, which holds a value of roughly $2,600,
00:11:21where it is accumulated to a stash of $1.08 million and change.
00:11:27There are various concrete reasons why you should invest in cryptocurrency.
00:11:32This will be elaborated further in Chapter 6,
00:11:35but let me give you a brief summary on the perks of buying cryptocurrency.
00:11:39First are their transactional properties.
00:11:42The cryptocurrency transaction is fast and global.
00:11:46Transactions are propagated immediately in the network and is confirmed within minutes.
00:11:51Since the transactions are managed by a global network of computers,
00:11:55they do not take into account your physical location.
00:11:59It is possible for you to send your cryptocurrency to someone in your vicinity
00:12:03or even if they are living on the other side of the world.
00:12:07Second are their monetary properties.
00:12:11The currencies are in controlled supply, thus there is a high chance
00:12:15that the value of the currencies appreciate over time.
00:12:19As I mentioned earlier, Bitcoin will somehow reach its final number somewhere in 2140.
00:12:25Third is their revolutionary property.
00:12:28You have more control of what is going on in your account
00:12:31and how the system works and operates.
00:12:34This is due to the decentralized network of peers
00:12:37which keeps a consensus on account balances and the transactions made.
00:12:42Compare this to your physical bank account,
00:12:45which can be changed and controlled by people you don't see
00:12:48and governed by rules you don't even know exist.
00:12:54Hello there and welcome back to the second module of Cryptocurrency Secrets.
00:12:59In the previous module, we've already delved into the basic fundamentals of cryptocurrency.
00:13:05In this video, we'll be exploring the different types of cryptocurrency.
00:13:10By the end of this module, you'll have an idea on which currency is worth your investment.
00:13:15There are over 800 cryptocurrencies,
00:13:19but we'll only discuss the top 5 most prominent currencies in the market.
00:13:24The 5 cryptocurrencies are
00:13:261. Bitcoin
00:13:282. Ethereum
00:13:303. Litecoin
00:13:324. Monero
00:13:345. Ripple
00:13:35First, let's talk about Bitcoin.
00:13:38This is the first ever cryptocurrency invented
00:13:41and remains by far the most sought-after cryptocurrency to date.
00:13:45Bitcoin is known as the digital gold standard in the cryptocurrency network.
00:13:51As explained in the previous module,
00:13:53Bitcoin is the pioneer of blockchain technology that made digital money possible.
00:13:59It is the first ever decentralized peer-to-peer network powered
00:14:03by its users without any central authority or middleman,
00:14:07which means no unnecessary costs are included in the digital money transaction.
00:14:13Over the years of Bitcoin's existence,
00:14:15its value has fluctuated tremendously from $0 to over $2,000 per Bitcoin to date.
00:14:22Its transaction volume has also reached 200,000 daily transactions.
00:14:27One major advantage that it has over other cryptocurrencies
00:14:31is Bitcoins are impossible to counterfeit or inflate.
00:14:35The reason being, there are only 21 million Bitcoins created for mining,
00:14:40no more, no less.
00:14:42Therefore, it's predicted by 2140 that all Bitcoins will already be mined.
00:14:47Thanks to its blockchain technology,
00:14:50you have ultimate control over your money and transactions
00:14:53without having to go through a third party such as a bank or PayPal.
00:14:58Bitcoin transactions are also impossible to be reversed.
00:15:02Therefore, you should only deal with trusted parties
00:15:05as Bitcoin is also used as a means for cybercrime like darknet markets or ransomware.
00:15:12The second most popular currency is Ethereum.
00:15:15Created by Vitalik Buterin,
00:15:17it has scored itself the second spot in the hierarchy of cryptocurrencies.
00:15:22This digital currency launched in 2015
00:15:25and is predicted to surpass Bitcoin and maybe the cryptocurrency of the future.
00:15:31Ethereum is currently worth $279 since its launch.
00:15:36Is Ethereum similar to Bitcoin?
00:15:39It is in a way but not really.
00:15:41Like Bitcoin, Ethereum is a part of a blockchain network.
00:15:45The main difference between the two currencies is that
00:15:48Bitcoin blockchain focuses on tracking ownership of the digital currency
00:15:52while Ethereum blockchain focuses on running the programming code or network.
00:15:58Instead of having to build an entirely original blockchain for each new application,
00:16:03Ethereum enables the development of thousands of different applications in a single platform.
00:16:10In the Ethereum blockchain, miners work to earn Ether.
00:16:14Ether is a crypto token that helps run the network.
00:16:17Another use of the Ethereum blockchain is its ability to decentralize any services that are centralized.
00:16:24For instance, Ethereum is able to decentralize services like loans provided by banks,
00:16:30online transactions using PayPal as well as voting systems and much more.
00:16:35Ethereum can also be used to build a decentralized autonomous organization, DAO.
00:16:41A DAO is a fully autonomous organization without a leader.
00:16:46DAOs are run by programming codes on a collection of smart contracts written in the Ethereum blockchain.
00:16:54DAO is designed to replace the structure of a traditional organization
00:16:59and like Bitcoin eliminating the need for people and a centralized control.
00:17:05What are the most obvious benefits of Ethereum?
00:17:08First, a third party cannot make any changes to the data.
00:17:12The system is also tamper and corruption proof.
00:17:15This is because Ethereum is built based on a network formed around a consensus as a result,
00:17:21making censorship impossible.
00:17:23Second, just like Bitcoin, Ethereum is backed up by secure cryptography.
00:17:28Therefore, the applications are well protected against any form of hacking.
00:17:33The third cryptocurrency is Litecoin.
00:17:36When the currency was first launched in 2011, it aspired to be the silver to Bitcoin's gold.
00:17:42Litecoin also recorded the highest market cap of any other mined cryptocurrency after Bitcoin's launch.
00:17:50The main reason of Litecoin's creation is to make up what Bitcoin lacked.
00:17:56The main difference between Litecoin and Bitcoin is the 2.5 minute time to generate a block for Litecoin
00:18:03as opposed to Bitcoin's 10 minutes.
00:18:06For miners and technical experts, the Litecoin possesses a very important difference to Bitcoin
00:18:12and that is a more improved work algorithm which speeds up the hashing power and system altogether.
00:18:19One of the biggest advantages that Litecoin possesses is that it can handle a higher volume of transactions
00:18:26thanks to its algorithm.
00:18:28The faster block time also prevents double spending attacks.
00:18:32While Litecoin failed to secure and maintain its second place after Bitcoin,
00:18:37it is still actively mined and traded and is bought by investors as a backup in case Bitcoin fails.
00:18:44The current value of Litecoin is $46.
00:18:48The fourth currency is Monero.
00:18:51This digital currency was launched in 2014 and its main goal was to create an algorithm
00:18:57to add the privacy features that's missing from Bitcoin.
00:19:01Monero invented a system known as the ring signatures to conceal the identity of its senders and recipients.
00:19:08Ring signatures combine a user's private account keys with public keys obtained from Monero's blockchain
00:19:14to create a ring of possible signers that would not allow outsiders to link a signature to a specific user.
00:19:22While Monero users have the ability to keep their transactions private,
00:19:27they are also able to share their information selectively.
00:19:30Every Monero account has a view key which allows anyone holding it to view the account's transactions.
00:19:37Initially, the ring signature system concealed the senders and recipients involved in the Monero transactions
00:19:44without hiding the amount being transferred.
00:19:47However, an updated and improved version of the ring signature system known as RingCT
00:19:53enabled the value of individual transactions as well as its recipients to be hidden.
00:19:59Apart from ring signatures, Monero also improved its privacy settings by using stealth addresses,
00:20:06which are randomly generated one-time addresses.
00:20:09These addresses are created for each transaction on behalf of the recipients.
00:20:14With this feature, the recipients use a single address and transactions they receive go to separate unique addresses.
00:20:21This way, Monero transactions cannot be linked to the published address of the recipients.
00:20:27By providing a high level of privacy, Monero allows each unit of its individual currency to be exchanged between one another,
00:20:35meaning each of its coin has the same value.
00:20:38Like other cryptocurrencies, Monero offers interested parties to mine blocks.
00:20:44Individuals may choose to join a mining pool or they may mine Monero by themselves.
00:20:49Anyone with a computer can mine Monero as they do not require any specific hardware or specific integrated circuits like Bitcoin.
00:20:58Instead, Monero uses a proof-of-work, POW algorithm that's designed to accept a wide range of processors,
00:21:06a feature which was included to ensure that mining was open to all parties.
00:21:11The price of Monero has fluctuated quite frequently from its launch until May 2017
00:21:17where the current value of the currency is now $43.80.
00:21:22Monero has received the acceptance of multiple dark web marketplaces and has generated its own fan base due to its privacy settings.
00:21:31Therefore, it's less speculative as compared to other digital currencies and traders purchase Monero as a hedge for other cryptocurrencies.
00:21:40Last but not least is Ripple.
00:21:43Ripple is actually a technology that has a dual function as a digital currency as well as a digital payment network for financial transactions.
00:21:52It was launched in 2012 and co-founded by Chris Larson and Jed McCaleb.
00:21:58The cryptocurrency coin under Ripple is labeled as XRP.
00:22:02Unlike the other cryptocurrencies, Ripple operates on an open-source and peer-to-peer decentralized platform
00:22:10which allows a transfer of money in any form, both fiat and cryptocurrency.
00:22:15Ripple uses a middleman in the currency transactions.
00:22:19The medium, the middleman known as Gateway, acts as a link in the network between the two parties wanting to make a transaction.
00:22:27The way it works is that the Gateway functions as a credit intermediary
00:22:32that receives and sends currencies to public addresses over the Ripple network.
00:22:37This is why Ripple is less popular when compared to the other digital currencies, with only $0.26 value to date.
00:22:46Ripple's digital coin XRP acts as a bridge for other currencies, which includes both fiat and cryptocurrencies.
00:22:55In Ripple's network, any currency can be exchanged between one another.
00:23:00If a user X wants bitcoins as the form of payment for his services from Y, then Y does not necessarily have to possess bitcoins.
00:23:09You can pay X to X's Gateway using U.S. dollars or any other currencies.
00:23:15X will then receive bitcoins converted from the U.S. dollars from his Gateway.
00:23:21The nature of Ripple's network is its systems exposes its users to certain risks.
00:23:28Even though you're able to exchange any currencies, the Ripple network does not run with a proof-of-work system like Bitcoin.
00:23:35Instead, transactions are heavily reliant on a consensus protocol in order to validate account balances and transactions on the system.
00:23:44But Ripple does improve some features of traditional banks.
00:23:48Namely, transactions are completed within seconds on a Ripple network, even though the system handles millions of transactions frequently.
00:23:57Unlike traditional banks, even a wire transfer may take up to days or weeks to complete.
00:24:03The fees to conduct transactions on Ripple are also very minimal, as opposed to large fees charged by banks to complete cross-border payments.
00:24:15Welcome back to Cryptocurrency Secrets.
00:24:18In the previous module, you already have explored the different types of cryptocurrency available.
00:24:24In this module, we will learn how to open an account to start your investment.
00:24:29To start investing in cryptocurrencies, the first thing you would need to do is to set up your digital wallet.
00:24:36In the cryptocurrency realm, the term used is wallet.
00:24:40The wallet can be likened to a bank account, which can be stored in different devices.
00:24:45A cryptocurrency wallet is a software program that functions to store private and public keys and interacts with various blockchains.
00:24:54It enables users to send and receive cryptocurrencies as well as tracking their balance.
00:24:59There are many wallets out there for you to choose from, which is all dependent on your security needs,
00:25:05as well as whether you wish to be an active trader or a more passive buy-and-hold investor.
00:25:11Once you've set up your wallet, you can then proceed to purchase and exchange the digital currency of your choice on many platforms.
00:25:18First, let's explore the top 5 wallets for you to choose from to hold your crypto funds.
00:25:24The top 5 wallets that you can choose from to store your cryptocurrencies are as follows.
00:25:301. BreadWallet.com
00:25:332. Blockchain.info
00:25:363. MyEtherWallet
00:25:394. JaxxWallet
00:25:415. Trezor
00:25:43First, let's look at BreadWallet.com.
00:25:46For now, BreadWallet only receives Bitcoin to store in their digital wallets.
00:25:51This wallet is great for Bitcoin beginners as it is very user-friendly and simple to use.
00:25:57Most important, the tool is free to use.
00:26:00All you need to do is download BreadWallet, choose a passcode, and you're ready to receive your currencies.
00:26:06There are no login names or passwords and no complicated cryptographic keys or configuring any settings.
00:26:13However, the downside of this wallet is that it can only be downloaded to your mobile device and there is no web or desktop interfaces.
00:26:21It also lacks features and it is a hot wallet, which means it has less security and other parties may access your private keys easier.
00:26:30The second wallet is known as Blockchain.info.
00:26:34The blockchain is catered towards Bitcoins only and is a mobile-based app for both iOS and Android.
00:26:42It also acts as a web-based wallet.
00:26:44The most distinguishable feature of the blockchain wallet is the newly developed payment channel for the Bitcoin network known as Thunder.
00:26:53The technology enables users to send and receive Bitcoins without touching the main blockchain.
00:26:59This results in a very secure transaction and instant payments.
00:27:03The blockchain wallet is free and to create your account you need to head to the main page and sign up for your account.
00:27:10The third wallet is known as MyEtherWallet.
00:27:14This wallet caters specifically to Ethereum currency.
00:27:18This wallet is user-friendly as it allows you to create a new wallet without having to download the blockchain as you can simply use the web-based application.
00:27:28MyEtherWallet is not your standard web wallet.
00:27:31You do not have to create an account on their server.
00:27:34You just simply create a wallet which is yours to keep where you may broadcast your transactions on the blockchain through their full node.
00:27:42Next is Jaxx Wallet.
00:27:44The biggest advantage of Jaxx is that it supports many of the leading cryptocurrency platforms such as Bitcoin, Ethereum, Litecoin, Dash and many more.
00:27:55It's both available to be downloaded on a mobile device or you can open it on the web.
00:28:00It also has one of the best user interfaces as when you log into the system you know how to navigate yourself and it's pretty straightforward.
00:28:09They prioritize user experience.
00:28:12Jaxx also has very good security and privacy settings as your private keys are sent to your local device and never to any servers.
00:28:20This simply means you have full access to your crypto funds and Jaxx does not hold or have access to any of your funds.
00:28:28However, as the code is not an open source, the system sometimes can get quite slow to load.
00:28:35The last but not least is Trezor.
00:28:37Trezor is a hardware Bitcoin wallet ideal for storing large amounts of Bitcoin.
00:28:43It's also suitable for beginners and very user-friendly and has very good security and privacy settings.
00:28:50The web interface is easy to use and the device comes with a built-in screen.
00:28:55Most important, it is an open source software.
00:28:58As it is a very secure and practical device, the cost is a little bit pricey at $99.
00:29:04You must also have a device to send your Bitcoins.
00:29:07We've already discussed the platforms where you can hold your cryptocurrencies.
00:29:12As mentioned previously, the wallets can be stored in different devices.
00:29:16There are five types of devices where you can download and store your wallets to hold your cryptocurrency.
00:29:221. Desktop
00:29:242. Cloud
00:29:253. Mobile Devices
00:29:274. Hardware
00:29:285. Paper
00:29:30First is your desktop.
00:29:32Your wallets can be downloaded on a PC or laptop.
00:29:35They are only accessible from the single computer in which they are downloaded.
00:29:39It offers very good security but the drawback is you are only able to access your wallet on the desktop and nowhere else.
00:29:47The second drawback is when your PC is attacked by a virus, the virus may also affect your cryptocurrency wallet and your wallet might get hacked.
00:29:56The virus may also access your private keys and your funds.
00:30:01Second, your wallet can be downloaded and stored in cloud or online.
00:30:06The wallets run on the cloud and are accessible from any devices in any location.
00:30:11They are very convenient to access, unlike your wallets stored on the desktop.
00:30:16However, bear in mind that your private keys are stored online and other parties may potentially access your wallet easily.
00:30:24The next wallet is your mobile wallet.
00:30:27You can download your wallet on your mobile device via the App Store or Google Play Store and others.
00:30:33Having your wallet on your mobile makes it very convenient as you have access to it anywhere you go.
00:30:39A lot of them are quite secure as they have multiple signature accesses as well as backup features in case you lose your phone.
00:30:47This way you would not risk losing your crypto funds as the backup feature has backed up your private key to unlock your wallet.
00:30:55The fourth wallet is your hardware wallet.
00:30:58A hardware wallet means you store your crypto funds on a USB or hard drive.
00:31:04Although hardware wallets complete their transactions online, they are stored offline and this enhances security.
00:31:12Last but not least is you can store your wallet on paper.
00:31:16Paper wallets are wallets printed out on a piece of paper.
00:31:19They are very easy to use as you have the option to carry it wherever you go or you can even store it somewhere else.
00:31:26Because they are printed out, they provide a very high level of security.
00:31:31While the term paper wallet can refer to a physical copy or printout of your public and private keys,
00:31:37it can also refer to a piece of software used to securely generate a pair of keys which are then printed.
00:31:44Now this leaves us with an important question.
00:31:46Where should you store your wallet which contains your crypto funds?
00:31:50This all depends on whether you are an active or passive user of cryptocurrency.
00:31:55To assess which user you are, you need to answer the following questions.
00:32:001. Do you need a wallet for everyday purchases or just buying and holding your digital currency?
00:32:052. Do you plan to use several currencies or just one single currency?
00:32:103. Do you require access to your digital wallet wherever you are, even when you are on the go or only from home?
00:32:17For instance, if you are the type of user who constantly spends your crypto funds to purchase daily necessities,
00:32:24you may want to store your wallet in your mobile device or on the cloud.
00:32:28However, if you plan to buy and hold your currencies for future investments,
00:32:32it's best for you to store your wallet on a hardware or paper wallet.
00:32:37Once you have chosen the best platform to hold your currencies,
00:32:41you can now proceed to the many digital currency exchanges to purchase your cryptocurrency and kick-start your investment.
00:32:48Cryptocurrency Exchanges for Investment
00:32:51First and foremost, let's get familiar with cryptocurrency exchanges.
00:32:56What is cryptocurrency exchange?
00:32:59Cryptocurrency exchanges are websites which allow you to buy, sell, and exchange cryptocurrencies
00:33:05for other digital currency or fiat currencies like the US dollar or euro.
00:33:10If you are very well versed in your crypto investment game and are used to trading professionally,
00:33:16you'll likely need to use an exchange platform that requires you to open an account and verify your identification.
00:33:23However, if you are relatively new to the realm of cryptocurrency,
00:33:27as a beginner, I advise you to start with platforms which do not require you to open an account.
00:33:33These exchanges are usually very straightforward and you can start trading occasionally until you get the hang of it.
00:33:40There are three types of cryptocurrency exchanges.
00:33:441. Trading Platforms
00:33:47These are websites that connect buyers and sellers where they charge certain fees for a completed transaction.
00:33:542. Direct Trading
00:33:56These platforms offer direct person-to-person exchange.
00:34:00You may exchange with individuals from different countries as well as different currencies.
00:34:04Direct trading does not necessarily adhere to the market price,
00:34:08as the individuals trading may set their own exchange rate.
00:34:123. Brokers
00:34:14These are websites that anyone can visit to purchase cryptocurrencies.
00:34:18However, the price is set by the broker.
00:34:21Cryptocurrency brokers are similar to foreign exchange dealers.
00:34:25Before making your first trade, it's important to take note of these five key pieces of information
00:34:31to minimize your risk and maximize your return on investment.
00:34:361. Reputation
00:34:38Before you start your exchange on your selected site,
00:34:41make sure you've gathered sufficient information regarding the site such as reviews from professional traders
00:34:47as well as well-known industry websites.
00:34:50You may also join forums that discuss cryptocurrency issues such as Bitcoin Talk or Reddit.
00:34:562. Fees
00:34:58Most exchanges will have fee-related information on their websites.
00:35:02Before joining any site, ensure you've understood the exchange jargons,
00:35:07deposit, transaction, and withdrawal fees.
00:35:11Fees may vary according to the exchange you choose.
00:35:143. Payment methods
00:35:16Take note of the payment method available.
00:35:18Does the site use credit and debit card? Wire transfer? PayPal?
00:35:23If a particular exchange has very limited payment methods, then it may not be convenient for you.
00:35:29Always remember that purchasing currencies via credit card will always require an ID verification
00:35:36and it comes with a premium price to increase the security measures.
00:35:40Meanwhile, purchasing cryptocurrency via wire transfer will take longer as it takes time for banks to process.
00:35:474. Verification requirements
00:35:50The majority of Bitcoin's trading platforms, both in the U.S. and the U.K., require a form of ID verification
00:35:57to make deposits and withdrawals.
00:36:00Some exchanges will also allow you to remain anonymous.
00:36:03Bear in mind that verifications may take a few days, but this is to protect exchanges from any sort of money laundering.
00:36:115. Exchange rate
00:36:13Do not be surprised that different exchanges offer different rates.
00:36:18Therefore, always remember to shop around and to not immediately settle on an exchange.
00:36:24This makes a big difference on your investment as cryptocurrencies are known to fluctuate in value up to 10%
00:36:31and even higher in some circumstances.
00:36:34As cryptocurrency is gaining more attention around the globe, there is a vast array of exchange platforms to choose from,
00:36:41but not all exchange platforms are created equally.
00:36:44In this module, I will only be listing down the top 5 most visited exchange platforms in no particular order.
00:36:521. Coinbase
00:36:542. Kraken
00:36:563. CEX.io
00:36:584. Shapeshift
00:37:005. Poloniex
00:37:02First, Coinbase.
00:37:04Coinbase is one of the most popular exchange platforms to date.
00:37:08It's used by trusted investors and millions of investors around the globe.
00:37:13This platform is user-friendly as it makes it easy for you to securely buy, use, store, and trade digital currency.
00:37:20The platform allows you to exchange currencies like Bitcoin, Ethereum, and, recently, Litecoin.
00:37:27They also have a digital wallet that's available on iPhone and Android.
00:37:32However, the selection of tradable currencies are dependent on the country you live in.
00:37:37Currently, Coinbase only allows transactions in the US, Europe, UK, Canada, Australia, and Singapore.
00:37:45The method of payment is also quite limited and restricted to bank transfers, credit or debit cards, and PayPal.
00:37:52To get started, all you need to do is sign up for your account and you're good to go.
00:37:57The second platform is Kraken.
00:37:59Kraken is the largest Bitcoin exchange in Euro volume and liquidity and is the first partner in the cryptocurrency bank.
00:38:08Kraken allows the exchange of Bitcoins where you're also able to trade Bitcoins and Euros, US dollars, Canadian dollars, British pounds, and Japanese yen.
00:38:19Kraken also allows the trade of other digital currencies such as Ethereum, Monero, Ethereum Classic, Augur REP tokens, Litecoin, Iconomy, Zcash, and many more.
00:38:32Kraken also caters towards more experienced users where it offers margin trading and other advanced trading features.
00:38:40Cost-wise, Kraken has very decent exchange rates, low transaction fees, as well as minimal deposit fees.
00:38:48However, like Coinbase, the payment methods are also very limited.
00:38:52Kraken is also more suitable for advanced traders and investors and it may be a little difficult for newcomers as it has an unintuitive user interface.
00:39:02To open up a basic account to start trading, you need to sign up for your account on their main page where it requires your personal details.
00:39:11A more advanced account additionally requires a government-issued ID and a proof of residence.
00:39:17The third exchange platform is CEX.io.
00:39:22This platform enables its users to easily trade fiat currency with cryptocurrencies and vice versa.
00:39:29For traders looking to trade Bitcoins professionally, the platform offers personalized and user-friendly trading dashboards and margin trading.
00:39:39CEX also offers a brokerage service which provides inexperienced traders a very simple way to purchase Bitcoins according to the market rate.
00:39:48CEX is a very practical mobile product where it is supported worldwide and has a very decent exchange rate.
00:39:56However, depositing currencies in your account is quite expensive.
00:40:01To start your trading on CEX, you need to head on to the main page and sign up for your account.
00:40:07Next up is Shapeshift.
00:40:09Shapeshift is tailored toward users who wish to make instant straightforward trades without signing up for an account or relying on a platform to hold your funds.
00:40:19It also supports the exchange of multiple cryptocurrencies including Bitcoin, Ethereum, Monero, Zcash and many more.
00:40:27However, it does not allow fiat currency exchange with cryptocurrencies and the payment methods are very limited as users are not allowed to purchase their digital currencies with debit or credit cards or any other payment system.
00:40:41Payments are to be done via cryptocurrencies only.
00:40:45Last but not least is Poloniex.
00:40:48This platform offers a secure trading environment with more than 100 different Bitcoin cryptocurrency pairings and advanced features for professional investors.
00:40:58Poloniex has a fee schedule for all its traders.
00:41:01Therefore, the fee that is charged varies depending on if you are a maker or a trader.
00:41:07Makers are traders who display their orders on their order prior to the trade.
00:41:12Takers are users who take the maker's order.
00:41:15For makers, their fees range from 0 to 0.15% depending on the amount traded.
00:41:22For takers, fees range from 0.10% to 0.25%.
00:41:28The reason why the fees vary is because maker-taker model encourages market liquidity by rewarding the makers of that liquidity with a fee discount.
00:41:38In order to start trading, you have to sign up for an account on Poloniex's main page.
00:41:43We've reached the end of this module.
00:41:45In order to start trading, you have to first possess a digital wallet, then shop around for suitable exchange platforms according to your preferences.
00:41:54The main factor to take into account before starting your investment is to acknowledge whether you are an active or passive user of cryptocurrency.
00:42:03Are you in it for the short term or the long run?
00:42:07Hello and welcome back to Cryptocurrency Secrets.
00:42:14In this module, we'll talk about the strategies you need to adopt to ensure a successful cryptocurrency investment and building your portfolio.
00:42:23Investing in cryptocurrencies comes with its own risks as well as rewards.
00:42:28Therefore, you need to invest strategically in order to maximize your return on investment and minimize your risks.
00:42:35There are five strategies which may come in handy for you, especially if you're relatively new to the cryptocurrency realm.
00:42:431. Understand the whole concept of cryptocurrency.
00:42:472. Spy on the market.
00:42:493. Invest in more than one coin.
00:42:524. Start small and scale higher.
00:42:555. Reallocate your investment.
00:42:58First, it's important for you to understand the whole concept of cryptocurrency.
00:43:03Always keep in mind that you do not simply invest in something you are not sure of and uncertain of.
00:43:10Don't jump on the bandwagon and follow what other people are doing just because you fear you're missing out.
00:43:16For instance, a lot of people see their peers investing in property and they just follow suit in hopes to generate millions without even conducting prior research.
00:43:26Therefore, the first thing you ought to do is study the space.
00:43:30These are the important points to be digested before kick-starting your investment.
00:43:35What is cryptocurrency?
00:43:37What is blockchain technology?
00:43:40What is Bitcoin?
00:43:41What are the other popular digital currencies?
00:43:44What are the coin's market caps?
00:43:47How can you start your own cryptocurrency exchanges?
00:43:50Where can you make cryptocurrency exchanges?
00:43:55Take your time to understand the realm of cryptocurrency and don't rush the process.
00:44:00It may take weeks or even months to digest all the information.
00:44:05But this step is imperative for you so you can be on top of the game and an expert in the field.
00:44:11This way there's a very low chance for you to waste your resources as you are familiar with the cryptocurrency industry.
00:44:18The second strategy to invest is to spy on the market.
00:44:22What does spying on the market mean?
00:44:24Spying on the market means you're observing what is currently working in the cryptocurrency market.
00:44:30What you want to specifically look into is what is the most sought-after currency?
00:44:35What is the value of the currency?
00:44:37Which currency has the highest market cap?
00:44:40Should you buy and hold the currency for future investments?
00:44:45Always remember that the cryptocurrency market is very volatile.
00:44:49And the value fluctuates every now and then.
00:44:52The values usually depend on a lot of factors such as the speculators, the market demand, the supply demand,
00:44:59and the different institutions manipulating the prices.
00:45:02My advice is for you to shop around and don't settle immediately for a specific cryptocurrency
00:45:08just because it has the highest value or popularity at the moment.
00:45:12For instance, the most sought-after currency at the moment is Bitcoin.
00:45:16But many professional traders and investors have predicted that Etherum may surpass Bitcoin
00:45:21and become the currency of the future in the coming years.
00:45:24Therefore, always spy on the market and analyze the information.
00:45:28The next strategy is to invest in more than one cryptocurrency.
00:45:33It's not wise to invest all of your money into a single digital currency.
00:45:38A well-balanced portfolio minimizes your risks as when you possibly lose on a cryptocurrency you own,
00:45:44you can still gain with the other ones you have.
00:45:47If you decide to invest in only one currency, for example, Litecoin, what if the whole currency collapses?
00:45:54You'll lose all of the money you have invested in a split second without any backups.
00:45:59Therefore, always invest in two or more currencies.
00:46:03Constantly spy on the market and choose the currency you prefer.
00:46:07The fourth strategy is to start small and scale higher as you go.
00:46:12A lot of people assume you become instantly rich when you invest in cryptocurrency.
00:46:16However, that is not always the case.
00:46:19You don't just become rich once you choose to invest in cryptocurrency.
00:46:23There is a strategy and a learning curve to get where you want to be.
00:46:27Therefore, always remember to start small, especially for those who have a small risk appetite.
00:46:33As mentioned in the previous chapters, cryptocurrency values are very volatile in nature as it depends on many factors.
00:46:40The values fluctuate even more in this cryptocurrency season where many people are starting to trade digital currencies.
00:46:47For beginners, the rule of thumb is to start investing $500 for your cryptocurrencies.
00:46:53You don't necessarily have to start investing thousands.
00:46:56Now that you have your $500, how do you divide the money and what currency do you start to purchase first?
00:47:02Well, first, remember to sign up for your digital wallet and deposit your fiat currency and purchase the top two cryptocurrencies, Bitcoin and Ethereum.
00:47:12The reason why we're selecting these two is because they're the most safest and established choices as compared to other currencies.
00:47:20They are prone to fluctuation but not much for now.
00:47:23So you split the $500 and purchase $250 worth of Bitcoin and $250 for Ethereum.
00:47:30This is a smart way to do it and if there are chances of you losing any of your funds, the risk is still worth taking.
00:47:37When you get the hang of it, you can scale your investment higher by purchasing your cryptocurrencies in a higher value.
00:47:44Last but not least is to reallocate your investment.
00:47:48Once you've completed all the steps from 1 through 4, which means you're familiar with the cryptocurrency realm,
00:47:54you can reallocate your funds according to the digital currency market.
00:47:58When you've started trading and investing, you'll notice over a period of time, some currencies will do better than others.
00:48:05For instance, you've observed Bitcoin's market and it's gone up whereas Ethereum's gone down.
00:48:12You can drag your funds to the higher currency market.
00:48:15This means you can play around according to what's working in the current market and constantly reallocate your money.
00:48:22When you get the hang of it, you'll realize that your investment will build up eventually from $500 to $1,000, from $1,000 to possibly $100,000.
00:48:31Always remember to do your part in getting to know more of the cryptocurrency market as there is always something new to look into.
00:48:39Be strategic in your investment and only invest in what you know.
00:48:46Hello there and welcome back to Cryptocurrency Secrets.
00:48:50In this module, we'll be discussing the effective channels for you to collect more Bitcoin to maximize your investment.
00:48:57There are six methods for you to earn more Bitcoins and it's not only restricted to cryptocurrency exchange or trading.
00:49:05The six methods are 1. Cryptocurrency Exchange
00:49:092. Faucets
00:49:113. Microtasking
00:49:134. Supplying Bitcoin-related services
00:49:165. Becoming a Bitcoin Escrow Agent
00:49:206. Bitcoin Affiliate Marketing
00:49:23The first method to collect more Bitcoins is by cryptocurrency exchange or trading.
00:49:29As mentioned in the previous modules, there are various forms of trading or exchange options available for Bitcoin.
00:49:36You may trade Bitcoin for Bitcoin or Bitcoin with other cryptocurrencies and even Bitcoin with fiat currencies.
00:49:44But most importantly, ensure you have equipped yourself with the knowledge required to start exchanging Bitcoin,
00:49:50so you know the risks involved as well as how much you need to invest as a beginner.
00:49:56One of the most common ways of accumulating and earning Bitcoin through trading is by day trading.
00:50:03Day trading is buying and selling of Bitcoins on the same day based on small, short-term price fluctuations.
00:50:10Therefore, when you observe the market and notice that the value of Bitcoin is going up,
00:50:15it's a good time to purchase some Bitcoins and sell them right away after you've made your profit.
00:50:21The second method to earn Bitcoins is through faucets.
00:50:25What are faucets?
00:50:26Faucets are websites which give away Bitcoins on a regular basis.
00:50:30They may give away Bitcoins every minute, every 10 minutes, every hour or once a week.
00:50:35All you need to do is sign up on the websites using your Bitcoin address and sometimes your email.
00:50:41And if you're selected, you get the Bitcoins.
00:50:44However, one downside to this method is the amount of Bitcoin given away.
00:50:50It's not as much, and sometimes the most you'll get is 0.00288 BTC, which equals to around $1.31.
00:51:01But still, who would want to give you Bitcoins for free?
00:51:04And looking at how volatile the cryptocurrency market is, it is definitely worth the try.
00:51:11Some of the popular faucets you can try to sign up to win your Bitcoins are Bitcoin Zebra, MoonBitcoin, WeekendBitcoin, Millie.
00:51:22The third method to earn your Bitcoin is by microtasking.
00:51:26Microtasking is websites that pay their users using Bitcoin for completing tasks,
00:51:33such as filling out surveys, watching videos, and signing up for new services.
00:51:39You can sign up for free and all the tasks can be done within your own time.
00:51:43One example of a microtasking site is CoinWorker.
00:51:47Next, you can earn Bitcoin by offering Bitcoin-related services.
00:51:51Not many people know that you can get paid with Bitcoin instead of fiat currency for offering Bitcoin-related services.
00:51:59If you want to get an idea of what services you could offer,
00:52:02you can visit Coinality, a site which gives current updates on Bitcoin jobs posted online.
00:52:08You can also visit BitcoinTalk, a forum which discusses a wide range of cryptocurrency topics,
00:52:14including a services thread where users are searching for Bitcoin service providers.
00:52:20Some examples of services people are looking for are
00:52:23Blockchain Developer, Website Manager, Graphic Designer, Mining Expert, Online Marketer, Writing for cryptocurrency blogs and news sites.
00:52:35The fifth method for you to earn more Bitcoin is by becoming a Bitcoin escrow agent.
00:52:40Now, what's a Bitcoin escrow agent?
00:52:42An agent handles the third-party escrow service of a Bitcoin transaction.
00:52:47Bitcoin escrow agents are getting more and more common as escrow protects users from fraudulent buyers
00:52:54by requiring the Bitcoin to be deposited up front.
00:52:58Usually, Bitcoin transactions are anonymous exchanges that involve untrusted parties.
00:53:04In an event where the sellers turn out to be scammers,
00:53:07the escrow agent will act as an arbitrator and will determine who will receive the Bitcoins.
00:53:12Many Bitcoin marketplaces provide escrow services such as LocalBitcoins, CryptoThrift, and BitPremier.
00:53:20To be an escrow agent, you must build up your reputation as a trustworthy party in the community.
00:53:27Last but not least is getting involved in Bitcoin affiliate marketing.
00:53:31For those who are not familiar with affiliate marketing,
00:53:34the idea behind it is that you promote someone else's product
00:53:38and they pay you a percentage of the profit based on the sales you bring in.
00:53:42Let's illustrate an example.
00:53:44Let's say you decide to promote Trezor, a hardware cryptocurrency wallet.
00:53:49If a person decides to purchase a Trezor and the customers came from your site,
00:53:54you get a commission for it.
00:53:56And the best thing is you earn your commission in Bitcoin
00:53:59where previous Bitcoin affiliate marketers have reported reasonable values of Bitcoin being paid to them.
00:54:06I've already listed the possible methods to earn your Bitcoins.
00:54:10Always remember, whatever method you choose to venture into,
00:54:13there's no such thing as easy money.
00:54:16If earning Bitcoins were that easy, everyone would have done it by now.
00:54:20In each of the methods listed above, you'll either need to invest your time or your money.
00:54:24There's no easy way out.
00:54:26Try what works for you and be patient with the results.
00:54:29All the best!
00:54:33Time for you to get to know the advantages of using cryptocurrency.
00:54:38As a digital asset that serves users online, cryptocurrency has many appealing benefits.
00:54:45Some of this is thanks to the blockchain technology previously mentioned.
00:54:49It's a strictly monitored process with encrypted transaction and control,
00:54:55thus making this online money a thing for the future.
00:54:59So in this chapter, we'll cover the top four benefits of cryptocurrency.
00:55:04The most well-known benefit of this investment is its no third-party involvement.
00:55:09There's always a pattern when using traditional money to buy yourself a new property,
00:55:14setting up your own business or buying a new car.
00:55:17One way or another, the process requires a third-party involvement.
00:55:21We're talking lawyers, owners, and other external factors such as delays, documentations, and extra fees.
00:55:29This in general will consume unnecessary time, money, and energy to the point of giving up.
00:55:35A good example of this scenario would be you're buying a new house.
00:55:39You need to pay a financial advisor who in general advises your financial statement to ensure you have a stable income.
00:55:47Some properties require you to pay for a booking fee to lock your house of choice and many other add-ons.
00:55:54In short, there's a lot of third-party involvement and it charges you even before you own the property.
00:56:00But this is not the case with cryptocurrency.
00:56:03As mentioned previously, the blockchain system is similar to a self-rights database.
00:56:09It means the contract is capable of being designed and enforced to remove any involvement of the third-party mentioned before.
00:56:17Moreover, the contract can be customized to complete a certain transaction at a set date at a fraction of any expenses.
00:56:25Yes, you can eliminate any third-party involvement options. In fact, you don't even need one.
00:56:31In short, you are in control of your own money using cryptocurrency.
00:56:35This is what we call the decentralized system, which means there's no central or federal government regulating it for you.
00:56:43Your transaction is practically immune to any influence from your government and its distinct manipulation.
00:56:50So, it's possible to be able to pay and receive money anywhere in the world at any given time.
00:56:56That transaction is done with minimum processing fees, thus preventing users from having to pay extra charges from banks or any financial institutions.
00:57:07The next advantage would be the risk it holds is lower than traditional currencies.
00:57:12In this era, most people rarely have their cash in their possession now.
00:57:17Instead, they have an array of credit cards, debit cards, and other payment cards available as their nation's method of payment.
00:57:24There's nothing wrong with that except, however, if the store's connection to the server is disconnected,
00:57:29or their machine's out of service and you, who do not possess any cash, just ended up holding the line.
00:57:36The thing about these cards are, any purchase you're making, you're giving the end receiver access to your full credit line,
00:57:43no matter how small the amount of the transaction is.
00:57:46The fact that you're giving someone your card to gain access to your account is already a form of breach.
00:57:53Most of this breach is considered secure nowadays using different safety measures like pin-enabled or pay-wave methods.
00:58:01Then the store initiates payment by pulling the designated amount from your account using the information provided within your card.
00:58:09Cryptocurrency doesn't work that way.
00:58:11Instead of pulling mechanisms, it pushes the amount that's needed to pay or receive to other cryptocurrency holders without any further information needed.
00:58:21Payments are possible without your personal information being tied to you, the transaction.
00:58:27Your account can be backed up and encrypted to ensure the safety of your money.
00:58:32By allowing users to be in control of their transactions helps keep Bitcoin, Ether, or other distinguished cryptocurrencies safe for the network.
00:58:42Another benefit of using cryptocurrency would be its protection from fraud.
00:58:46We've often heard cases where one's payment card is being used by other users but not the owner.
00:58:52When contacting his card service issuer, it's found that the card has made certain transactions without his consent.
00:59:00This is what we call a fraud case.
00:59:03Most of the time, these fraud cases get away with the crime because it's not easy to trace the fraud back to the perpetrator.
00:59:10What's more, it's even difficult to get the attention of law enforcement to launch an investigation with only a single instance of a crime the perpetrator committed.
00:59:19However, cryptocurrency is not viable to fraud because your personal information is kept hidden from unnecessary prying eyes.
00:59:27This protects you against identity theft.
00:59:30Remember, cryptocurrency is a form of digital money created from code.
00:59:35Individual cryptocurrencies are, as mentioned, digital and cannot be counterfeited by senders.
00:59:41Because the transactions cannot be reversed, they do not carry with them any personal information.
00:59:47This ensures security and the merchants are protected from any potential losses that might occur from fraud cases.
00:59:54It's very hard to cheat or make false accusations against anyone using these cryptocurrencies due to its decentralized system and the existing blockchain system.
01:00:04It cannot be manipulated by anyone or any organization thanks to its being cryptographically secure.
01:00:12Lastly would be its universality.
01:00:15Over the course of payment history, nations worldwide have their differing methods of payments implemented.
01:00:22We have money goods exchange system and even bartering trade.
01:00:26It's not until traders visited other countries that they found out how to trade items to one another.
01:00:33Thanks to various innovations and developments, we now have multiple methods to trade and exchange money worldwide.
01:00:40But even with all the upgrades, we're still experiencing problems doing transactions across the globe.
01:00:46There's always currency issues, bank authorizations, unacceptable payment methods and some other varying issues experienced by business owners or travelers out there.
01:00:57The fact is not all countries have similar financial processing.
01:01:01Your card or currency may not be accepted by other countries and that is a major setback to your account.
01:01:08For example, most online banking, payment or cash systems require additional processing fees for their service even if that account is yours.
01:01:19However, cryptocurrencies are not bound by any of those exchange rates, transaction charges, interest rates or any other fees applied on any countries.
01:01:29They can be used at any time at any international standard without experiencing any problems.
01:01:36It also saves you a lot of time and money by reducing additional spending over transferring money from multiple countries to another.
01:01:43Which means cryptocurrency operates at an international platform, which in turn makes transactions easier than your average telegraphic transfer.
01:01:53To recap, there are four major advantages concerning cryptocurrencies.
01:01:58It has no third-party involvement, lower risk compared to traditional currencies, protection from fraud and universality.
01:02:06Despite the amazing advantages that comes with cryptocurrencies, there are also some setbacks to this investment as well.
01:02:14We'll uncover those in the next chapter.
01:02:20Now we get to explore some of the drawbacks of the digital asset of cryptocurrency.
01:02:25Previously it was mentioned how cryptocurrency is a one-of-a-kind digital currency without likeness.
01:02:32Because not many payments nowadays are without the involvement of a third-party, low-risk payment, little or no fraud cases and most of all universal in its usage.
01:02:43However, considering the online nature of cryptocurrency, there are many appalling flaws that come with it.
01:02:49There are four major setbacks concerning cryptocurrency.
01:02:53The first one is the lack of understanding over cryptocurrency.
01:02:58In most cases people are still unaware of the digital currency world and the potential it holds.
01:03:03This is very similar to when the usage of credit cards first became available and the reception towards them was fairly similar to that of cryptocurrency.
01:03:14Back then people wouldn't even think that paying things using a mere card is possible.
01:03:19What's more, using a whole new digital currency.
01:03:22Because it is different and it doesn't involve cash directly, people shy away from it and constantly doubt its effectiveness.
01:03:30Additionally, it involves online access to make it work.
01:03:34The idea of paying for things or transferring money online is convenient to some but most are still skeptical about it.
01:03:41In order to make cryptocurrency acceptable around us, the people need to be educated about it to be able to include it in their daily lives.
01:03:50One way to do this is through networking, but the fact is there are not many places online where people can learn about it.
01:03:57The effort to learn a whole new world of currency requires a lot of time and energy.
01:04:02Most would think it's not worth their time because it's not commonly known anyway.
01:04:07Even though some businesses are accepting bitcoins, the list is significantly small compared to traditional currencies.
01:04:15This is probably due to the lack of knowledgeable staff that understands the ways of digital currencies.
01:04:21Plus, they need to help educate their customers about it and how to use it for a smooth transaction.
01:04:27This again will take longer time and effort to teach others.
01:04:31Another drawback of cryptocurrency would be its lack of protection and guarantee.
01:04:37In the case of traditional currency, there's a central bank that governs the authority on every nation's money.
01:04:43No higher authority can suddenly decide that they no longer want to use their country's currency to trade without protest and rejection.
01:04:50There are proceedings to follow, documents to file, approvals and many other protocols to follow.
01:04:56However, that's not the case with our digital currency.
01:05:00There is no central bank who governs bitcoin, which means no one can guarantee its minimum valuation.
01:05:07The value of bitcoin, for example, will fall tremendously should a major group of merchants decide to just discard bitcoins and leave the system.
01:05:15This will inevitably put other users who have invested thousands of dollars into bitcoins into a major loss.
01:05:21There's no one to contact to complain about these losses or rules to help compensate them.
01:05:26Thus, the decentralized system of bitcoin is what we call a double-edged sword all on its own.
01:05:33The next disadvantage is its technical shortcomings.
01:05:37When online banking made its way into our lives, there's always a risk of sudden server failure, power shortages and even hardware lags.
01:05:45If it happens and you ended up getting charged but didn't receive the online movie tickets or flight tickets,
01:05:51you can always call back the service provider or go to the physical bank instead and declare your case.
01:05:57Most of the cases, if you show evidence of your payment, you'll get proper compensation or feedback.
01:06:03But that's not how it works with cryptocurrency.
01:06:06First of all, this currency does not have a bank to negotiate and help you around.
01:06:10There's no fixed number that you could call and just ask for clarification.
01:06:14So, if you bought your goods using bitcoins, for example, and the merchant didn't send the items you purchased,
01:06:20there's nothing you can do to reverse the transaction or get a refund.
01:06:24You can't complain to the police or any relating authority for that matter.
01:06:28Similar to data corruption or virus infections, if your hard drive crashes and your wallet file is corrupted, your bitcoin is lost forever.
01:06:37There's nothing you can do to restore it and those coins will be orphaned in the system.
01:06:42The last major disadvantage of cryptocurrency would be because it is still developing.
01:06:47When things are still developing, it's prone to many risks.
01:06:51There are so many incomplete features that can be improved, but it takes longer time to finalize, especially if it has no physical form.
01:06:59With traditional currency, despite the method of payments nowadays are done online,
01:07:04and without us actually seeing the physical money transferring from one account to another,
01:07:09at the end of the day, when you reach the ATM, you're capable of holding that cash.
01:07:14You can use it to buy stuff from the stores physically and online.
01:07:18This shows how developed our traditional currency is.
01:07:21Since cryptocurrency doesn't have any physical form, its usage is obviously restricted.
01:07:27It must always be converted to traditional currency to enjoy its worth.
01:07:32According to studies, there was a time when there was a proposition to store bitcoin wallet information on cards.
01:07:39However, there is no consensus nor continuation of the proposal.
01:07:43Most probable reason would be because merchants find it unfeasible to support all the cryptocurrency cards.
01:07:49There's no system for an immediate payment using the cards.
01:07:53Thus, users are forced to convert it into real money anyway.
01:07:57As you can see, there are four disadvantages of cryptocurrency.
01:08:01There is a lack of understanding towards this digital currency, plus there's a minimum protection and guarantee when using it.
01:08:08Because it's mostly operating online, it's bound to experience all kinds of technical flaws and it's still developing.
01:08:15The world of cryptocurrency is relatively new to some people and it can be difficult to understand,
01:08:20because nobody really knows what currencies will or can be adopted and at what scale.
01:08:25So, in the next chapter, we'll talk about what the future holds for cryptocurrency.
01:08:31Now, we'll finally touch upon the future of cryptocurrency.
01:08:36These digital currencies have been said to be able to capture the world of online finance.
01:08:41With a blockchain technology behind it, the future of cryptocurrency is showing a prosperous potential.
01:08:47Starting in 2017, the alternative currencies will need to watch its price closer than usual.
01:08:54Studies show that bitcoin experienced a drop in its price.
01:08:58It seems like a cheaper cryptocurrency by the name of Ether reached its highest at $40 a unit.
01:09:04That's right. Although the mechanism behind Ether prevents it from being used as a direct payment method,
01:09:10this cryptocurrency seems to have a brighter future ahead.
01:09:14This is all thanks to its smart contract concepts.
01:09:18On the other hand, cryptocurrencies that are concerned with privacy are starting to gain more prominent favor amongst users.
01:09:26Bitcoin, unfortunately, despite their security measures, continues to have loopholes that can be exploited for access to users' personal data.
01:09:35But this doesn't stop users from investing in bitcoin.
01:09:38Up to this day, bitcoin is still being accepted as a means of payment.
01:09:43The level of acceptance is clearly bringing this alternative currency to the mainstream.
01:09:48Some companies are genuinely considering thinking about investing in this currency further fueling its journey to the world of financial currency.
01:09:56Are we going to see a new norm of currency by cryptocurrency someday?
01:10:01Researchers concluded that it's still too early to predict that it would be,
01:10:05but one thing is for sure that this currency is slowly making its way into the world.
01:10:10The most targeted group of all would be the technologically savvy individuals.
01:10:15And most of us are already part of this group.
01:10:18More than 50% of our time spent online and it won't be long until it reaches 100.
01:10:23One day we might even consider using cryptocurrency as our standard currency for a more universal world of transactions.