Have you heard about Bitcoin but you do not know very well "what is one of those"? You are in the right place.
Bitcoin is the BEST and FAIR money that exists. Do you think the phrase is bold? We challenge you to devote a couple of evenings to study it and reject the phrase if you still think it is daring.
- Crypto Dictionary :
Before starting with this mega post and for purposes of better learning, it is very important that you know the meaning of some terms and technical words referring to the cryptocurrency industry in general:
Bitcoin: Main and most popular cryptocurrency, created by the anonymous author Satoshi Nakamoto, from Japan, in 2009.
Blockchain: technological platform of cryptocurrencies, which can be compared to a digital accounting book of unlimited capacity, in which all types of transactions are recorded and recorded.
Cryptocurrency: a form of digital or virtual money characterized by its security (based on cryptography), its decentralized nature (without intermediaries or central authority), and its favorableness to privacy and transparency in transactions.
Exchanges: Platforms or web applications in which you can buy and sell cryptocurrencies by applying trading techniques.
Mining: electronic mechanism by which new cryptocurrencies are created and the integrity and veracity of the platform or blockchain and of all its transactions is maintained.
Faucets: ways to earn cryptocurrencies for free by doing certain tasks in applications or web pages. (In general, what you can earn is very little and requires a lot of time and energy from your computer, which is why it is not highly recommended.)
Fork: process by which a significant change is made to the algorithm or blockchain of a cryptocurrency. There are soft forks (soft changes) and hard forks (radical changes where even derived cryptocurrencies such as Bitcoin Cash are created)
Trading: financial activity based on the sale or purchase of cryptocurrencies based on concepts such as speculation, volatility, knowledge of the market, times and limits of purchase or sale, reading of graphs, etc.
- What is the bitcoin and what the cryptocurrencies are:
To begin, it is necessary to know that Bitcoin was the first "cryptocurrency" created with the main objective of "digitizing and democratizing money" through a decentralized and anti-fraud technology (blockchain). After the Bitcoin began to emerge new cryptocurrencies which sought the same goal of Bitcoin with their respective technologies and objectives in areas such as the movement of money, privacy, entertainment, specific technological solutions, etc.
Bitcoin is considered as the most important cryptocurrency currently and you should keep in mind that the other cryptocurrencies in their vast majority share a vision and objectives similar to Bitcoin, but with small unique and different details. If you understand how Bitcoin works, you can understand how other cryptocurrencies work when you start studying them individually. (Currently there are more than 1000 cryptocurrencies that excel in this industry - see coinmarketcap)
- What is the Blockchain :
The Blockchain technology is probably the most complex topic and full of technical explanations when we want to talk about the universe of cryptocurrencies. However, it is not necessary to enter a programming language to understand the purpose and operation of the Blockchain technology.
In simple terms, we can say that the Blockchain technology acts like the highway and the cryptocurrencies are the cars that cross the highway. Apart from acting as the freeway of the cryptocurrencies, the Blockchain is also responsible for recording all movements of the cryptocurrencies acting as a great digital accounting book 100% public.
There are cryptocurrencies like Bitcoin and Ethereum that developed their own Blockchain technologies and there are other cryptocurrencies that have been created and operate within existing Blockchain technologies such as the case of the ERC20 tokens, which are covered under the Ethereum Blockchain.
You can see all the movements and registers of the Blockchain of Bitcoin in Blockchain.info
See all the movement and records of the Ethereum Blockchain in Etherscan.io
While currently Blockchain technology works mainly as a digital accounting book in terms of "digital money" it also has the ability to record any type of transaction such as when you register on a website, when you buy a certain product online, when you sign a contract with a third party, etc; and all these records are carried out taking into account and ensuring the privacy of users.
The following explanatory video will give you a clearer idea of what Blockchain is, but please keep in mind that in the video they erroneously call the "blockchain" technology as "cryptocurrency" technology
- What is mining (POW AND POS) :
Cryptocurrency mining is the way in which new cryptocurrencies are created in Blockchain. There are two main ways to mine or create cryptocurrencies and they are known as POW (Proof of Work for its acronym in English) and POS (Proof of Stake or Proof of Stake for its acronym in English).
The Work Test or POW mining is developed by means of specialized computers, which are programmed to solve complex calculations that require a considerable expenditure of time, electricity and technological innovations. Perhaps it sounds a bit difficult to understand but it is enough to be clear that these specialized computers are owned by "miners" or people and companies responsible for keeping the existence and integrity of the Blockchain afloat, verifying each of the transactions that run the Blockchain and earning as a reward small fragments of Bitcoin. The larger the network of specialized computers that the miner has, the greater the reward received in Bitcoin.
The following video, can give you a clearer and more visual idea about how POW mining works:
On the other hand, we have POS mining or rather, the Participation Test (POS) method to create cryptocurrencies.
Although this method has not been widely developed and does not have a definitive idea and accepted by the whole community, we can find certain generalities that are presented below:
In general, the POS method applies to those cryptocurrencies that have been totally mined by their creators
In general, the POS method rewards users who have more cryptocurrencies either in the form of new cryptocurrencies or receiving a small percentage for transaction charges
In general, the POS method consumes much less energy since complex computational calculations must not be solved but all the transactions in the Blockchain are verified by the cryptocurrency retainers and the security is based on the Blockchain and its algorithm.
- How to buy bitcoins :
Once you understand the concept of bitcoin and cryptocurrencies, the next step is to acquire your first bitcoins, since it is the main cryptocurrency, which has a more massive use and with which you can access other cryptocurrencies. Maybe you're thinking: "but a bitcoin costs thousands of dollars and I do not have all that money ..." The good news is that the bitcoin is divisible up to 8 decimals; In simple terms this means that you can buy fractions of bitcoin up to 0.00000001 bitcoin, which to date has a much lower cost to $ 1 US dollar.
There is no general rule on what should be the minimum amount you should start to buy bitcoins, as it depends a lot on your personal situation, your goals, and of course, your financial situation. Whether you're buying bitcoins to buy products or services that only accept this cryptocurrency or because you want to make investments or trading, always follow the following tips:
Never spend orinvest more money than you are willing to lose. Never put your financial assets, your assets or the basic survival of your family at risk. Do not go into debt to buy bitcoins or other cryptocurrencies. Do not trust those people or companies that promise you high returns. since regardless of what they say and all the arguments that they present, 99% of the cases turn out to be scams, Ponzi schemes or people / companies intervened by governments. Only buy bitcoins from trusted companies or people with whom you can verify their reputation and quality. Knowing the above, you can see below different tutorials of authors of the Latino Token blog, where you can learn to buy your bitcoins in different Latin American countries.
- How to save your bitcoins :
Once you buy your first bitcoins, the second step, and the most important one is to store them securely in one or more of the available "digital wallets". There are dozens of wallets to store your bitcoins both on the Internet, on your computer, on your cell phone, or on external devices. Regardless of which method you decide to use to store your bitcoins, you should know that at any time you can move your bitcoins from one wallet to another and that you should always follow universal security principles such as those detailed below:
Never share your wallets or private information like passwords with other people.
Do not use your wallets in unknown computers or cell phones.
Always have a backup of your wallets and keep that backup in a safe place.
For added security, add double authentication factors to your wallets such as text messages or applications such as Google Authenticator, as applicable in each case.
If you do not follow the previous security measures, other people with bad intentions can access your bitcoins, send them to another wallet and this way you would lose them forever.
Having in mind the above, you can see below different tutorials of authors of the Latino Token blog, where you can learn to use the different wallets available to store your bitcoins.
- How to sell your bitcoins :
At any time you can decide to sell your bitcoins with the main objective of converting them into physical money. There are many companies or people who can buy your bitcoins but it is very important that you do a respective investigation and verify their quality and reputation.
Among the most popular options to sell your bitcoins are the following:
Sell your bitcoins to other known people or platforms such as localbitcoins.com and receive cash as a form of payment
Sell your bitcoins to established companies and receive a bank transfer as payment
Sell your bitcoins to established companies and receive an international debit card to withdraw your money at any ATM
Below you can see different tutorials from the bloggers of Latino Token, where you can learn how to use the different options available to sell your bitcoins for cash.
- How to buy, save and sell other cryptocurrencies :
How to Buy Other Cryptocurrencies
Once you have bought your first bitcoins or bitcoin fragments, you can use those bitcoins to start expanding your portfolio and buy or invest in other cryptocurrencies. The same principles and recommendations given in the section on "how to buy bitcoins" also apply when buying other cryptocurrencies.
As an additional recommendation you should always be very diligent with the respective investigations before buying any cryptocurrency. Do not fall in the "wave for recommendation" and do not go to buy all the cryptocurrencies that tell you that they will be "the next bitcoin". Just buy those cryptocurrencies that you have studied exhaustively and personally consider that they have a great power or an affinity with you.
Having in mind the above, you can see below different tutorials from the bloggers of Latino Token, where you can learn to buy other specific cryptocurrencies already established, of great potential and that have been studied in detail.
How to Save Other Cryptocurrencies
The way to save other cryptocurrencies is very similar to "how to save your bitcoins". There are even wallets that allow you to save both bitcoins and other cryptocurrencies. Therefore the same safety recommendations apply.
Below you can see different tutorials from the authors of the Latino Token blog, where you will learn how to use specific wallets to store your other cryptocurrencies.
How to Sell Other Cryptocurrencies
The way to sell other cryptocurrencies is very similar to "how to sell your bitcoins". There are even companies or people that can buy you both your bitcoins and your other cryptocurrencies. Therefore the same recommendations and instructions apply.
9 ICOS
ICO in English means "Initial Coin Offering", which translated into Spanish means "Initial Currency Offering". In simple terms, an ICO is when a new company or project decides to create its own cryptocurrency and sell it in exchange for other cryptocurrencies or in exchange for physical money. These companies use the ICO model to raise funds and take their platforms, businesses or projects forward
While ICOs are a subject of much controversy and controversy, it is worth saying that it is a model that promotes the growth of the entire cryptocurrency industry in general. In fact many of the most important cryptocurrencies currently, such as Ethereum, used the ICO model in its beginnings to take their projects forward and today they show that it was an excellent strategy both for the cryptocurrency and for the entire community that invested in it. the beginning.
There are as many ICOs as there are cryptocurrencies currently! So you must also follow very important recommendations so that you do not lose your money in ICOs with little power or possibly in scams:
Do not blindly invest in an ICO, you must do your own research and discover for yourself the potential that exists and not only because "pepito" or "crypto guru x" told you it will be the "next bitcoin"
You must invest in those ICOs that have a strong team or community behind the project or behind the cryptocurrency.
ICOs are the riskiest investments in the field of cryptocurrencies, so only invest money that you are willing to lose.
Having in mind the above, you can see below different tutorials from the bloggers of Latino Token, where you can learn more about ICOs, receive more recommendations, and even read reviews of specific ICOs from a neutral point of view.
- How to avoid scams, and make better use of your time and money
As in any industry, scams are something common that we see every day in the world of cryptocurrencies. It is very important to have the necessary knowledge to identify scams or schemes where your time or money can be wasted.
In Latin Token we will always recommend that you invest your time and money in training on the most important topics to generate cryptocurrencies such as trading, mining or deep knowledge of cryptocurrency technology with the goal that you can create your own successful ICOs. It is more profitable in the medium and long term to invest a couple of months training on these topics and take them into practice at the right time, to start from a perspective of euphoria or emotion and waste your money and time in scams or schemes with little power professional and financial
With the above clear, we will give you some tips to avoid becoming a victim of scams or schemes where your time and money can be wasted. At the end you can see reference to other articles by authors of the blog of Latino Token where you can deepen on this topic and receive more recommendations:
Distrust totally those people or companies that promise you high returns because regardless of what they say and all the arguments presented, 99% of the cases turn out to be scams, Ponzi schemes or people / companies intervened by governments.
With the exception that you have the necessary systems or can refer hundreds of people, avoid faucets or similar schemes to win free cryptocurrencies, since in 99% of the cases they result in a loss of your time and money derived from the electricity expenses.
Do not buy cryptocurrencies from people or companies with which you can not verify their reputation or quality. (for example you can see if other users have already bought and if they were satisfied or not)
If you are interested in mining, remember that before you start you must have advanced technical knowledge about the necessary equipment, about the profitability of mining depending on each cryptocurrency, and you must keep in mind that every day the difficulty will increase and only those with knowledge and equipment advanced companies will be able to obtain the best returns in the medium and long term.
Remember that the best investment you can make with your money is to improve your knowledge, and the best investment you can make with your time is applying that knowledge.
- Introduction to trading
Probably, trading is the most exciting topic for crypto-entrepreneurs, but perhaps it is also the least explored and understood. Before starting to trade, it is mandatory that you train yourself since you can lose all your money if you do not follow the process of learning and progressive and adequate action.
Then we give you the most important tips and concepts about trading so you can start with the right foot and avoid the most common mistakes made by beginners. Remember to see the referees
at the end to see other articles and tutorials from the bloggers of the Latino Token blog, where you can go deeper and learn more about this exciting topic. The most popular way to make cryptocurrency trading is on "unregulated" platforms or exchanges such as bittrex or poloniex with the advantage that you can enter and withdraw your cryptocurrencies to increase your portfolio, but with the disadvantage that you do not have adequate support and better guarantees such as those offered on regulated platforms or brokers. The second way to trade cryptocurrencies is in trading platforms or "regulated" brokers with the advantage that you have better guarantees as a customer and can receive more professional support. However, the disadvantage is that you can only work with fiat money (dollars, pesos, etc.) and you can not enter or withdraw cryptocurrencies, since your losses or profits will also be represented in fiat money (dollars, pesos, etc.). long-term goal is to increase your cryptocurrency portfolio, then it is more advisable that you do trading in "unregulated" exchanges but if your goal is to earn money and trade in the short term, then it is more advisable to use trading platforms or brokers "Regulated". Similarly, you can find a point of balance and use both options. You should always keep informed of the industry and especially of the latest news or rumors that in the vast majority of cases cause an increase or decrease in the price of cryptocurrencies. Remember that the industry of cryptocurrencies is probably the most volatile industry to make investments and while you can earn a lot of money in the short term you can also lose the same amount. Therefore you should only invest or allocate money that you are willing to lose and that does not represent a risk to your heritage