What are the tax ramifications of investing in cryptocurrencies?
There are tax ramifications and you should check with your government agency to see what those are. In the USA the IRS posts a link here for reference.
Why do I have to use so many different services?
Those of us who are used to financial investing are familiar with one provider that delivers all the services we need. That may happen at some point in the cryptocurrency space, but that currently is not the case. Until that happens, we have to use whatever services are available to us, and with the amount of profit that can be made, we don’t want to miss out because we were just too lazy to sign up to another website.
What are the public and private keys?
In cryptography, a public key is a cryptographic key that can be utilized by any party to encrypt a message. Another party can then receive the message and using a key that is only known to that individual or group, decode the message.
What is proof of stake?
Proof of stake has been considered the greener alternative to PoW. Where PoW requires the prover to perform a certain amount of computational work, a proof of stake system requires the prover to show ownership of a certain amount of money, or stake.
What is proof of work?
Proof of work was a concept originally designed to sieve spam emails and prevent DDOS attacks. A Proof of Work is essentially a datum that is very costly to produce in terms of time and resources, but can be very simply verified by another party. The proof of work for Bitcoin is referred to as a “nonce,” or number used only once. This has been considered an energy intensive alternative to proof of stake as the computers unfortunately have to be on and running, which also drives the market towards centralization of hashing power… which is what the blockchain aims to defeat!
What is Mining?
Mining is the term used for discovering and solving blocks along the blockchain. A reward is given for solving the algorithm and lengthening the chain, called a mining reward. The mining reward for the Bitcoin blockchain is Bitcoin.
What is a Fork?
A fork is the permanent divergence of an alternative operating version of the current blockchain. Forks come into existence when a 51% attack occurs, a bug in the program, or more commonly a new set of consensus rules come into existence. These happen when a development team creates and inserts notably substantial changes into the system. The successful fork is decided by the height of their blocks.
What’s is an Altcoin?
An Altcoin is the community accepted name for any coin that isn’t Bitcoin. For example: Dash, Ripple, IOTA, NEM and Monero are all major Altcoins.
What is an address?
A bitcoin address is essentially the same thing as your home address. It’s the location from which you would receive, send or hold your currency. These addresses generally manifest in a long string of alphanumeric characters and will look something like:
A wallet address is the public portion of the two encrypted keys necessary for a holder to accept or verify a transaction.
Is it safe? What happens to my money when the bubble burst?
Money in a safe coin like bitcoin or Litecoin, maybe even Etheruem, Monero or Ripple. Just put your money there and check back a few years from now. The bubble that traders are talking about is the massive fluctuation of money in the Altcoin market where people are pumping in money in hopes to flip a profit when the value rises within a short span of time.
Not all coins are good or worth that sort of investment. Some coins never make it past investment stage. The early investors who cash out make it, the late comers die a horrible death. It happened with the dot com bubble of the late 90s; it happened with the subprime mortgage crisis in 2008. 2018 is looming on the horizon.
How can I buy cryptocurrencies?
There are many ways to get Bitcoins, which you will need to trade other cryptocurrencies. There’s a variety of exchanges and wallets that you can find, depending on your needs. Many exchanges and wallets will store amounts of digital and/or fiat currency for you – a lot like a regular bank account. The most popular and the one’s we recommend are Gemini.com and Coinbase.com.
Why use cryptocurrencies?
There’s many advantages to using cryptocurrencies, many of which include:
- Quick, Easy and Convenient – You can send and receive bitcoins anywhere in the world at any time in a matter of a few minutes.
- Low Fees – Normally, the fees for Bitcoin transactions are very small. Bitcoin fees can fluctuate due to the dynamic fee market. In addition, some wallets will also allow you to pay a fee you’re willing to spend. With higher fees, you’ll get faster confirmation of your transactions.
- Secure – When using Bitcoin, users remain in control of their transactions. You’re also protected from identity theft since Bitcoin payments can be made without personal information associated with the transaction.
- Transparent – All Bitcoin transactions are fully available on the blockchain for anybody to verify and use in real-time.
What expectations should I have on cryptocurrency investing?
It’s important to start off slow, then moderately start to build up your cryptocurrency investments. Getting the fundamentals down is going to be key to long term success.
Once there is a good foundation in place, it’s best to start off with small trades. We recommend starting off with a few small investments and once you have a few trades under your belt and are feeling comfortable, only then scale up to the next level.
At this point it’s important to try many different back-end protected trades, with an account size of $10,000, feel free to execute as many as 10 trades a month to increase the rate of learning and at the same time having a well diversified portfolio. Don’t forget, you can also keep executing trades in a paper trading account, just to see how different trades play out. Remember, at the beginning it’s all about knowledge acquisition, and paper trading is a great way to get that.
We are not going to win every trade and our goal here is not to get rich. What we are doing is consistently making money year after year, a return on capital that out performs almost any other form of investment. This is not a get rich quick scheme, if anyone is telling you that you’re going to get rich quick doing anything, you should turn and run the other way, because those never work.
We are only there to give you the tool and the education you need to be a smart and skillful investor.
The fact is no one cares more about your money than you do. So it’s going to be very important that you take control and get the skills needed to make your money grow year after year.
Now that you are here, just relax, have fun and enjoy yourself. Investing is not only profitable, it’s fun, it’s empowering, and other people also have increased perception of people who manage their own money. Just be sure to take it slow, respect the process and if you have any questions we are always here to help.
What is Bitcoin?
Bitcoin is a popular digital currency, created and stored electronically. It’s not centrally controlled, nor are bitcoins printed; instead, bitcoins are made by people and businesses through software that solves mathematical problems.
Bitcoins belong to a growing category of digital money called cryptocurrency.
One of Bitcoin’s most distinguishing characteristics is that it’s completely decentralized. This means that its network is not controlled by any one institution. This makes a lot of people feel secure because it means that a large bank or institution won’t be able to control their money.
Are there any transaction fees?
Normally, Bitcoin and other cryptocurrency transactions have low fees. These fees fluctuate and depend on the dynamic fee market. To speed up your transactions, you can pay a certain Bitcoin fee.
Is Bitcoin anonymous?
Bitcoin transactions are not tied to any personal information which allows users to protect their privacy. However, since all Bitcoin transactions are public knowledge and permanently on the blockchain, other users can see the activity associated to a particular wallet address—hence not being 100% anonymous. If you’re looking for anonymous sending, we recommend the coin Monero.
How can I sell my Bitcoin?
The same why you buy, is the same way you sell. You can sell your Bitcoins for USD on Gemini.com or Coinbase.com and have the USD sent back to your bank account.
What are the risks with buying cryptocurrencies?
All investing comes with risk, this starts with user error, which means making mistakes like losing a private key or transferring error. New users should test things in small quantities to ensure they understand things property. Other risks include leaving coins on an exchange and getting them hacked. Out side of that the main risks include investing in bad coins or macro factors which include government regulation.
What is the difference between an exchange and a wallet?
An exchange is a site that allows you to change one currency into another. A wallet is the device used to store your coins.
Exchanges have wallets built into them for you to store your coins on them, but it’s highly recommended that you do not keep your coins on them for long and instead, after trading, transfer them to a cold storage wallet like we discus in the course. This is due to the constant threat of hackers trying to steal your coins listed on the exchange.
I don’t know how to trade. Can I still profit from this? Where do I begin?
Yes you can. We show you how to buy and sell cryptocurrency coins and we also put out our own trades and token ratings.
If it’s that good why aren’t more people doing this?
Because people don’t trust what they don’t know and if something is too new or hard to understand it remains in the realm of the tech geeks until someone makes it mainstream. Remember the days of the internet or social media? How long were they out there before you picked it up? Same as Cryptocurrency. The money-making opportunity is too good to be true.
We are used to banks giving us lousy returns or insurance companies giving us between 2 – 5% per annum. The savvier investor makes 9% through other portfolios, the very good ones maybe make 20%. In cryptocurrency, the everyday Joe and Jane can make 50% or more in any given week. Sounds too good to be true? People do it all the time, of course they can also lose by the same accelerated price movements, so it pays to be careful.
What are Blocks?
Blocks are essentially pages in a ledger or record keeping book. Blocks are the files where unalterable data related to the network is permanently stored. Forever. Like eternity.
What is the Blockchain?
A blockchain is a data system that allows for the creation of a digital ledger of transactions on a non-centralized network. Cryptography is the main operator that allows for users to engage with the ledger without the need for any central figurehead. In layman’s terms, this means that people and computers all over work together to create a network instead of a network being made by one single person or company. This network is enabled and protected through cryptography! We have seen this used in currency, data transfer and on. The blockchain is comprised of “blocks” and is constantly growing as each new record, datum, or block is added onto the chain for everyone to see.
How do I use your service effectively?
Our cryptocurrency investing methods are, what we believe, to be the best method out there for gaining exposure in the space. Go through our learning material and follow our trade alerts and learn the procedures.
How do I get trade alerts sent to me?
We offer three forms of trade alerts, you can pick the one that is best for you by clicking here.
I heard it’s a Ponzi scheme. Wouldn’t someone run away with my money after they made enough?
Yes and no. There are hundreds of coins with newer ones coming out every other day. If coins confuse you, think of them as apps designed by tech companies with a certain use. Some apps are poorly made and some are good. If you blindly put money in as an investor to back the bad ones, you stand a chance to fall prey to scams. That’s why I always recommend that you do your research first and don’t just follow trends.
How do I get started with your membership?
We have outlined the steps need to get completely up to speed with our membership. So you get the trading, the trade updates, the accounts, setup, and the best commission rate all in one place. Just click here.
Can we watch the course offline?
The video course is only available in our protected members area to ensure the course does not end up on a shared or torrent website.