Bitcoin was the first ever cryptocurrency. Its creator is anonymous, and goes by the alias ‘Satoshi Nakamoto’. In late 2008 they released the official Bitcoin whitepaper (in-depth report), which explained what Bitcoin was and how it can work as a form of digital money that one person can send to another without the need for central authority.

In early 2009 Bitcoin went live. At first it was treated as an experiment and not taken serious by many, but over time more people, as well as financial institutions have started to recognise that as well as functioning as an alternative type of digital money, Bitcoin functions like a digital gold, which is known as a store of value.

This is because:

• It is scarce – there will only ever be 21 million produced.
• You cannot copy, or create fake or artificial bitcoins.
• It is almost impossible to fake Bitcoin transactions
• It follows rules written in code, not rulers – as there is no one person/entity in charge to manipulate it

You do not have to own a whole Bitcoin. It is a divisible currency, with the smallest unit of measurement being called a ‘Satoshi’ – which is a 100 millionth of a Bitcoin.

Right now you may not feel that there is anything wrong with the money you use right now. That ie because for any of us living in ‘stable’ economies, the problems with modern money are hard to detect on a day to day basis.

However, there are 1.2 billion people living under double or triple digit inflation. Ask them what it feels like to see the purchasing power of money melt like an ice cream on hot summers day.

Even with the USA, they have seen the purchasing power, of their US Dollar decline by 96% since 1913! This problem has arose because the ‘Gold standard’ had been removed, which ensured that every pound, dollar, euro or yen put into circulation was backed by an equivalent amount of gold. It ensured money was scarce – which is essentially what gives it value.

Without that factor, governments can now print as much as they want, finance wars, various projects and run up massive debts. This leads to currencies getting weaker and weaker, as there is more supply.

US debt is currently over $23 trillion! All that keeps the mountain of debt from collapsing and then crushing the dollar is trust. Hyperinflation is what happens when that trust disappears and a currency becomes worthless! Zimbabwe and Venezuela are examples of this.

No we are not talking about the car manufacturer!

Fiat money is used to describe the regular money we are used to. Currencies that are issued and controlled by governments and central banks.

Fun fact: fiat means authorisation in Latin. So fiat money is absically money that the government authorises.

With fiat money, this government authority and trust by the citizens of a country is essentiall the only thing that gives money value. Since the gold standard was abandoned in 1971, governments have been free to print as much money as they want – without anything backing it. This has led to huge huge debts which many feel is unsustainable and will all come crashing down.

Cryptocurrencies offer an alternative system of money outside of the fiat money model.

Every piece of digital information – from your photos on social media, to the components on the web page you are reading right now, are stored in a database somewhere. Essentially, whoever has access to that database, controls these items and if they wish to – can alter them, replace them or delete them. Databases are centralised stores of information.

A blockchain is a system of storing information without a central controlling authority. It is basically a database, on which each new record cannot be erased or deleted.

In crypto, blockchain technology is used to record transactions. This list would exist across a network of servers that all keep a record of it. This is called decentralisation.

The first ever blockchain was the Bitcoin blockchain. It was designed to enable a new form of money that wasn’t controlled by a central authority (a bank) but instead managed by a network of different participants processing new transactions and creating new bitcoin (miners) and validating transaction accuracy (nodes).

So bitcoin is controlled by the many, not the few.

Your bank balance is just a record on a database maintained by your bank. You trust the bank to keep an accurate record. Blockchain works the same way, except it is decentralised.

The wider monetary system is maintained by central banks. They can grow/shrink the money supply however they want, which can lead to many consequences.

Blockchains are a way to remove the risks of centralised control which in the case of money can have disastrous consequences.

An altcoin is any alternative coin to bitcoin. Quite literally that. Every other coin out there apart from bitcoin is an altcoin. Hence the term alt-coin – alternative, coin.

Altcoins works similarly to Bitcoin, where a private key is used to send a payment from one digital wallet to another, and blockchain technology acts as a ledger to permanently record the transaction so it can’t be altered.

There are 1000s of altcoins out there so surely there must be a way to differentiate between them. Certain altcoins do more than just allow the exchange of money for goods and services. Other altcoins offer better anonymity, while others target specific industries.

There are different types of altcoins which we explain in the beginners course guide.

Ethereum is known as the ‘world’s computer’. One could say it’s the king of altcoins.

It is a blockchain that acts as an engine for anyone that wants to create a piece of software like an app, and benefit from all the features of blockchain such as: reliability and censorship resistant – without the hassle of creating a blockchain themselves.

By following its standards: any service built on Ethereum can create its own currency and utilise a settle system for transactions.

Users of the service pay a fee for transactions, known as the ‘gas’ fee.

A stablecoin is a type of cryptocurrency specifically designed to maintain a stable value and pegged to the value of an existing currency.

E.g. Tether (USDT) is a stablecoin that attempts to peg itself to the value of the US Dollar. So 1 USDT = 1USD.

There are many different stablecoins – the difference being how they maintain the parity with whatever they are pegged to.

Now you may be thinking, why do we need a crypto version of the US Dollar? What’s wrong with normal dollars? Well government-issued money comes with strings attached. It isn’t easy to move between countries, or exchange it, and there can be hurdles with buying cryptocurrencies with USD.

Therefore one could say: stablecoins are a bridge between the money we are used to, and the new forms of money that cryptocurrency offers.

Another common factor of crypto is price volatility. This is because it is still a relatively new, unregulated market and their value depends on perceptions of future uses. Some see this as a great investment opportunity, but they still ‘lack stability’.

• They allow crypto users to avoid volatility without having to pull funds back to fiat.
• They can be good for settling international payments.
• They provide a simple way to enter the crypto market.

The simplest way to make money of crypto is by ‘investing’.

The rule is simple: BUY LOW SELL HIGH. Too many people overcomplicate things and make lives hard for themselves for no reason.

E.g. You buy a coin at $1 and sell it for $2. This is a 100% (2x) gain and you have doubled your money.

It’s not rocket science. Buy low sell high. Have patience for your investments to play out and have a long term mindset. Nothing happens overnight.

Buying and holding is the simplest way for newcomers to make money of cryptocurrency.

Think of it like buying shares in the stock market, except you are just buying digital currencies. It’s the same concept, just in a different market.

The all important question.

Yes of course. Cryptocurrency exchanges can be easily linked to your bank account, and you can sell your profits into fiat and withdraw back to your bank by the click of a button.

This is not some random ‘money making scheme’ from some ‘guru’ on social media. This is a financial market that is in its early stages and is only going to grow. Mainstream adoption is growing by the day.

The opportunity to make large gains is here for those who wish to take it and play the game correct. That means investing in the correct coins and taking profits. Making those gains real and realised! Withdraw some profits and make it feel real. Spend some on yourself and your family and enjoy the fruits of m.