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Disclaimer

This e-book has been written for information purposes only. Every effort has been made to make this e-book as complete and accurate as

possible.

However, there may be mistakes in typography or content. Also, this

e-book provides information only up to the publishing date. Therefore,

this e-book should be used as a guide – not as the ultimate source. The purpose of this e-book is to educate. The author and the publisher

does not warrant that the information contained in this e-book is fully

complete and shall not be responsible for any errors or omissions.

The author and publisher shall have neither liability nor responsibility

to any person or entity with respect to any loss or damage caused or alleged to be caused directly or indirectly by this e-book.

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Table of Contents

Introduction ………………………………………………………………….. 6

The Growth Of Bitcoin ………………………………………………………………………. 7

Chapter 1: Knowing What Exactly Bitcoin Is ……………………….. 9

So… What Is Cryptocurrency? …………………………………………………………… 10

The Trending Popularity Of Bitcoin ……………………………………………………… 10

Chapter 2: The Trading Of Bitcoin ……………………………………. 12

Becoming a Bitcoin Trader ……………………………………………………………….. 12

Becoming a Bitcoin Investor …………………………………………………………….. 13

Cryptocurrency Investing Strategies …………………………………………………… 13

Chapter 3: Why You Should Be Investing In Bitcoin …………… 16

What Cryptocurrency Should You Invest In? …………………………………………. 17

Bitcoin Advantages ………………………………………………………………………… 18

Should You Worry About Investing In Bitcoin?……………………………………….. 19

Chapter 4: The Importance Of Bitcoin Security ………………….. 21

Hot Wallets ………………………………………………………………………………….. 21

Cold Wallets ………………………………………………………………………………… 22

Watch Out For The Cryptocurrency Scams ……………………………………………. 23

Chapter 5: Start Making Money With Bitcoin ……………………… 25

What Is Bitcoin Mining? …………………………………………………………………… 25

What Is Cloud Mining? ……………………………………………………………………. 26

When You Should Buy and Sell Your Bitcoins ………………………………………… 27

What Is Microtask for Bitcoin? …………………………………………………………… 27

Becoming a Bitcoin Day-Trader …………………………………………………………. 28

Trading Bitcoin On The Market ………………………………………………………….. 29

Start Using Your Bitcoins For Online Gambling ………………………………………. 30

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Learn What The Bitcoin Faucets Is ……………………………………………………… 30

Earn Bitcoins as a Blogger ……………………………………………………………….. 30

Chapter 6: Using Bitcoin For Your Online Business …………….. 32

The Future Economies Of Bitcoin ……………………………………………………….. 34

Chapter 7: The Bitcoin Vocabulary …………………………………… 36

Chapter 8: Setting Up a Wallet ………………………………………… 40

Chapter 9: The Possible of Bitcoins ………………………………….. 43

Chapter 10: What Is Blockchain Technology ……………………… 46

Chapter 11: The Advantages Of Bitcoin …………………………….. 48

Chapter 12: You Should Start Charging Bitcoin ………………….. 50

Conclusion …………………………………………………………………… 52

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Introduction ____________________________________

To most people, Bitcoin can seem like a financial concept made in a parallel universe.

Yes, it’s a very complex and complicated concept, but it doesn’t mean it’s impossible to learn it. When you think about it, many people

started off with no idea about bitcoins and how it worked.

But look at them now, they’re probably investing left and right in

various cryptocurrencies like pros and possibly profiting very nicely as

well! So, in this article, we’ll try to simplify how Bitcoin works using a betting game analogy:

Imagine playing a betting game with your friends, but none of you have any money on hand, so you decide to use a ledger to record the

transactions, like your winnings and losses. But you don’t want to put

your trust on one friend to record everything, so a lot of you decide to make a ledger simultaneously.

This way, at the end of each game, those who kept ledgers can compare their records to see if it all evens out—which means that

cheating the system would be virtually impossible unless everybody

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else is in cahoots with you, which ultimately defeats the purpose of cheating in the first place.

The ledger is not hidden or exclusive to the ledger keepers; you can view it anytime you want. To add your transactions to the ledger, all

you have to do is broadcast your transactions to the ledger keepers,

and you pay as little or as much as you want to make sure they put your name down on that ledger as soon as possible.

Your friends who keep the ledgers up to date get compensation for their hard work with a reward in the form of money. This money

comes from an external source say, a vault with a limited amount of

money. The money in the vault wasn’t part of the money circulating in the betting pool, but it became so once it was acquired by your ledger-

keeper friends.

This simple analogy is exactly how Bitcoin operates, albeit on a much

more complicated level. Bitcoin runs on a global computer network,

and each transaction is compiled into new blocks which are then connected to the last block on the blockchain. And the bitcoin miners

are the ledger-keepers who work hard to record transactions and mine

those precious bitcoins.

The Growth Of Bitcoin The world has witnessed tremendous growth in virtually all sphere of

life. It owes its advancements to the great intellectuals whose succor

lies in solving practical human problems.

A noteworthy invention is the recent introduction of global digital

currencies that uses a public ledger system for payments, investment and other forms of transactions.

These transactions are now being carried out with ease and devoid of any restrictions whatsoever. It is a revolutionary transition from the

engraved metallic coin to the printed papers and now, to the reign of

digital currencies. Such digital currencies include the likes of Bitcoin, Ethereum, Litecoin, etc. and they are categorically called

cryptocurrencies.

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Bitcoin is blazing the trail in the world of the digital currencies. This is

perhaps because it has become widely accepted by people from every

facet of life. World leaders with stronger economies are beginning to see the enormous potential residing in the power of Bitcoins.

Although they have their fears that decentralized cryptocurrencies may result in subverted activities with untraceable transactions, they

nonetheless have also seen the minimum risk involved in using it.

Bitcoin can be issued in fractional denominations, which are Bits and

the Satoshi. A bit represents the common unit used to designate a

subunit of a Bitcoin. An estimated 1000000 bit is equal to 1 bitcoin.

This unit is used as small denominations in the Bitcoin world. It is

estimated that 1bits is equal to 0.00000100 Bitcoin and the smallest unit is the Satoshi, with 1 Satoshi equaling 0.00000001 bitcoin.

If you are new to the cryptocurrency world, there are ways to set up your Bitcoin account and make your first purchase. You could also earn

it by services rendered, goods sold, and individual cloud mining, plus

largescale mining pools requiring sophisticated hardware.

Setting up your Bitcoin account is simple. Some of the sites offering

this service are blockchain.info, coinbase, and Xapo. All you have to do is, visit the sites, fill in the required information and create an address

peculiar to that wallet.

This address will be required to have all transactions done online.

There are also offline wallets often called a cold wallet. A cold wallet is relatively safer to store your Bitcoin. However, it is required that the

computer is highly secured from virus and intruders that could hack

away your Bitcoin.

Having purchased or earned your Bitcoin, you can invest or simply

store them in your wallet. Watch out for market trends and sell your Bitcoin in exchange for fiat currency of your choice to make a profit. If

this still sounds a bit confusing, don’t worry. Just keep reading, and

we’ll walk you through each step of the process.

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Chapter 1: Knowing What Exactly Bitcoin Is ____________________________________

Bitcoin is a type of digital currency that is produced and held electronically.

They are not issued as printed papers like the dollars, yen, euros, and

pounds. They are increasingly being produced by people, businesses,

and enterprises running computers all over the world using software that solves mathematical problems.

Bitcoin transactions are sent from persons to persons without a third party like the conventional centralized banking system. In other words,

it operates on a decentralized system with no government, regulating

body, company or individual having sole control over it. Hence, all transactions are peer to peer.

All transactions carried out are absolutely transparent. Copies of the electronic ledger are reserved across a distributed network of

computers hosted on the web with no single point of failure. The

technology behind this is Blockchain which is fast becoming well accepted worldwide. The mining of Bitcoin is difficult, and as it stands,

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the demand for it is very high hence it’s rapidly increasing exchange rate. It is a currency which is only less than a decade, yet it has

gained more relevance than the printed fiat currencies. This is because

of the value it has created in such a short time of its existence.

Bitcoin uses the acronym BTC as its unit. Bitcoin and other digital

currencies like Ethereum and The-Billion-Coin also fall in the monetary category known as cryptocurrencies. They are also based on

mathematical proof.

So… What Is Cryptocurrency?

Cryptocurrency is a general term used to describe digital currencies

created to enable the medium of exchange using cryptography.

This ensures the security of all transactions carried out as well as

controls the transfers and creation of additional units. Bitcoin is the first ever decentralized cryptocurrency created.

This decentralized cryptocurrency is based on a software developer called Satoshi Nakamoto’s proposition. He proposed that an electronic

payment system currency, independent of any central authority,

transferable electronically with low transaction fee and ease be produced. His idea yielded results when Bitcoin was created in 2009.

Today, the smallest units of Bitcoin are called the Satoshis.

The Trending Popularity Of Bitcoin

After a turbulent start of 2017, there was an increasing rise in the global cryptocurrency market and the market hit its stride in the early

month of February. This increase rise gave reasons for strong

optimism in the future of Bitcoin.

These rises out-performed key market leaders such as S&P, DOW, etc.

giving Bitcoin unusual popularity. Bitcoin has also found an increase in its usage and value.

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Experts believe that it is because of the following reasons:

• It is believed to be safe and appreciative which has helped to

grow its value.

• Payment methods involving high-risk fraud have drastically

reduced to its barest minimum with its usage unlike those done through credit and debit cards.

• Some parts of the world where the no-VAT ruling is practiced, e.g., Europe, has also helped to increase its popularity.

• Another profound reason is its increasing acceptability all over the world for payment for goods and services via the web.

• The future of cryptocurrency is fast taking over from other online payment methods such as PayPal, credit and debit cards which

has restrictions on usage. Some countries are not even allowed

to use such means of online transactions.

With the popularity of Bitcoins across the globe, it is certain that the

future looks bright for the digital currencies.

More and more people, companies and agencies are starting to take a

keen interest in this form of currency.

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Chapter 2: The Trading Of Bitcoin ____________________________________

Trading and investing may sound the same, but in reality, they

are as different as day and night.

Trading refers to a short-term method of trying to profit from buying

and selling of bitcoins while investing refers to a long-term strategy

where a buyer will hold on to their bitcoins for a long time and ride out

any dips in the market price.

Becoming a Bitcoin Trader

The Bitcoin trader thrives on the exciting volatility of bitcoins. They’ll try to time the market and buy bitcoins when the price dips and then

they’ll wait for the price to go up before they sell their bitcoins.

Trading is a high-risk game because you’re betting for the price to go

up or down. Not everyone can trade, however. The most successful

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traders are those who have nerves of steel and can detach their emotions from their trades.

Traders don’t get scared of dips in the price because they are optimistic it’s going to go up again, sooner or later. They are looking to

maximize their profits, too, so they’ll mostly invest a lump sum and

buy at the lowest price they can possibly go for, and then they’ll wait until the price is high enough for them to make significant profit.

Trading takes a lot of guts. It takes a lot of thought and analysis. If you’re an emotional type of person who gets physically sick with every

dip in bitcoin price, then you’re better off investing, and not trading, in

bitcoins.

Becoming a Bitcoin Investor Bitcoin investors are different from traders. They’re in it for the long

haul. They’re not looking to take advantage of short-term fluctuations

in the exchange rate. If the price goes down by hundreds or thousands of dollars, they’re probably going to get worried, but they’re not going

to pull out their investment because they’ve already decided they’re

going to hold it for the next 10, 20 or 30 years.

A wise investor will practice the dollar cost averaging method to

manage risk. This means whether the price goes up or down, they’re going to buy bitcoins and hold them.

This strategy is perfect for long-term investments as you’re essentially spreading the risk. Though profits may not be as significant as short-

term trading, the bitcoin investor probably sleeps easier at night as

they’re not worried how the charts are going to look like tomorrow or the day after.

Cryptocurrency Investing Strategies

Investing in highly volatile bitcoins and other cryptocurrencies is risky

business. These currencies are all electronic or virtual in nature, and thus have no physical presence. They don’t even have intrinsic value.