Do you remember the time when crypto began production sense to you for me it was when i recognized that there was a lot more to cryptocurrency compared to simply bitcoin. There are thousands of various other coins symbols and decentralized applications with their own unique use situations and qualities currently i keep in mind that when i first attempted informing my family and friends about this huge community
It flew right over their goings and that is component of why i decided to begin this network education and learning is the key to the mass fostering of cryptocurrency but the begin of that crypto learning contour can be high for the fiat sheep ideas such as blockchain mining and staking are hard to understand and also harder to discuss in simple terms as i’m certain many of you can
Attest this can be a problem when you are attempting to assist your friends family and loved one understand where all your money is going and why so that is why today i’m mosting likely to inform you how to discuss complex crypto ideas in a manner they’ll understand and also how to answer the questions and address the concerns
You are most likely to obtain before we continue there’s a disclaimer you must observe i am mosting likely to inform you many points today but none of it’s monetary advice because that would certainly be ineffective i prefer to give you the knowledge you yearn for to find your own escape of being a wage slave if this is your first encounter with the bureau my name is man and i’m a crypto hero i put the highest
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Quality crypto content on this website to respond to the fud and the moon boy buzz information reviews coins symbols tutorials devices and more everything comes jam-packed with entertainment so you will not obtain bored if you want to sign up with me in my crypto fight sign up for the network and ping the notice bell that shows up on the right if you appearance down you will see there are a lot of timestamps in the video clip
Timeline that you could use to skip about keep in mind that watching the entire way through will help this content obtain found well that is my intro stick currently let me inform you how you can help others make crypto click if my individual experience is anything to pass the first question you probably obtain when you begin discussing cryptocurrencies with family and friends is
What the heck is cryptocurrency well here is how i answer that question simply put cryptocurrencies resemble routine moneys other than they’re completely electronic each individual cryptocurrency coin is essentially simply a collection of numbers and letters this sounds complicated but it is actually not away from what we see with moneys today here is what i imply by that almost every
Physical money expense in the world has a unique serial number this serial number corresponds to information such as when the expense was published where it was published and so forth theoretically a document of all money expenses that have ever been published and where they are is maintained by a main financial institution which shares this information with smaller sized financial institutions and the federal government if you have actually a debit card or credit card you will know that you have an account
Number on there as well you also have a password or pin number that you use to access the cash because account your financial institution branch knows your account number and your name because you needed to provide your individual information to open up an account this information is also shown the main financial institution and federal government currently let’s say you have a 20 expense with the serial number
Abc and your checking account number is one 2 3 when you down payment that expense right into your checking account your financial institution branch the main financial institution and the federal government will see and verify that the 20 expense abc is removaled right into checking account top 2 3 this is almost exactly how cryptocurrencies work each individual cryptocurrency coin
Resembles the serial number you see on a physical expense simply without the physical expense much like routine expenses almost every cryptocurrency can be split right into smaller sized items when it comes to bitcoin each btc can be split right into 100 million items called satoshi’s which resemble cents to a buck a cryptocurrency purse address resembles a checking account other than that there is no
Physical card that accompanies it it is simply an account number because you do not need to provide any individual information to produce a cryptocurrency purse this means that the identification isn’t attached for your crypto purse such as a checking account is most significantly any cryptocurrency kept in your individual purse is held straight by you not custodied by a financial institution such as routine money in a checking account
This means that no one can closed down your cryptocurrency purse or obstruct your deals because you have total control over that account at perpetuities currently the trade-off here’s that if you shed access for your cryptocurrency purse or forget to jot down the healing expression you obtain when you make one well you will shed your cryptocurrency
Forever rather than financial institutions and the federal government maintaining track of everyone’s expenses and checking account equilibriums these documents are kept throughout all the computer systems connected to a cryptocurrency network these deals and account equilibriums are public and can be viewed by anybody using something called a blockchain traveler because computer systems can make
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Cryptocurrency for processing transactions on a cryptocurrency network this incentivizes more computers to join the network to process transactions and earn cryptocurrency this makes cryptocurrency networks secure because there is no single point of failure this is called decentralization and it’s the polar opposite of the centralized setups
Of governments and banks now in case you didn’t put two and two together that means the digital currencies banks around the world are creating are not cryptocurrencies they’re creating a seriously dystopian payment network be sure to tell them that the coin bureau has a video about that on their youtube channel and it’s in the top right here once you’ve blown their minds with that
Analogy you’ll probably get questions about bitcoin and dogecoin and any other cryptocurrencies they’ve heard about here’s what i would say while you’ve probably heard of bitcoin and dogecoin there are actually thousands of cryptocurrencies just like there are hundreds of different regular currencies us dollars euros chinese un and so on the crazy thing is that every cryptocurrency is different and not all
Of them are designed to be a currency you would actually use for everyday transactions broadly speaking there are two types of cryptocurrencies coins and tokens now cryptocurrency coins belong to cryptocurrency networks that were built from the ground up and buy from the ground up i mean that someone spent a lot of time and a lot of money putting together the code required to create
A safe and reliable cryptocurrency network cryptocurrency coins are the cryptocurrencies given to computers when they process transactions for a cryptocurrency network for example btc is a cryptocurrency coin because the bitcoin network was built from the ground up and btc is given to the computers that process transactions for the bitcoin network because
Cryptocurrency networks are so hard to make from scratch only a few dozen cryptocurrencies are actually coins the rest are cryptocurrency tokens in contrast to cryptocurrency coins crypto tokens are easy to make and can often be created in a matter of minutes with little to no effort this is why there are tens of thousands of tokens the nfts you keep hearing about
Are actually cryptocurrency tokens that are like digital certificates of ownership for physical or digital art pieces nfts are just the tip of the iceberg of what you can do with tokens as well for example there’s a company called circle that issues a cryptocurrency token called usdc usdc is fully backed by real u.s dollars which means that for every one usdc in circulation
Circle has one us dollar in the bank you can create usdc by giving them your dollars and redeem your dollars with usdc another company called paxos issues a cryptocurrency token called pax g each pax g token is backed by one troy ounce of gold kept in a vault here in london and you can redeem pax g tokens for real physical gold or us dollars
The best part is that both circle and paxos are fully regulated in the united states and regularly audited to make sure they have the appropriate number of reserves on hand backing their tokens how’s that for security now speaking of security the most important thing to remember about cryptocurrency tokens is that a lot of them are nothing
More than scams this is primarily because cryptocurrency tokens are so easy to create all a scammer needs to do is create a token set up a fancy website pay for a few ads on social media pay a few news outlets to feature their coin and they can get rich off crypto noobs overnight naturally the next question your cryptocurious compatriots are likely to
Croak is a timeless classic are cryptocurrencies safe after all i heard they’re used by scammers and criminals and i keep reading about all of these cryptocurrency hacks well this is usually my response to these sorts of questions and comments whether a cryptocurrency is safe or not ultimately depends on the context for starters not all cryptocurrencies
Are created equal some cryptocurrencies are built to prioritize speed over security and usually the consequences of that play out quite quickly luckily for us there are always hackers somewhere looking to crack cryptocurrency networks so they can trick them into creating new coins or tokens out of thin air to sell for a fancy
Profit now this might sound scary but it’s no different to what happens to banks and corporations on a daily basis when hackers succeed the affected company usually beefs up its cyber security the same goes for cryptocurrencies this means that most cryptos that have been around for years are robustly battle tested as a consequence of
Always being under attack by bad actors if you’re not convinced well consider this as i mentioned earlier some cryptocurrency networks are made up of computers spread out around the world that are constantly double checking transaction histories and account balances if you wanted to corrupt a cryptocurrency network you would have to hack more than half of all the computers connected to the network
At the same time in order to do it this is impossible to do if you have a cryptocurrency network like bitcoin that has millions of computers spread around the world that said some cryptocurrency networks have fewer computers processing transactions and are therefore more vulnerable to attack the same rule applies to centralized cryptocurrency services like cryptocurrency exchanges which is
Where most crypto hacks have happened these are much easier and more lucrative to exploit than an individual cryptocurrency wallet which is insanely secure that’s why you should always keep your crypto on your own personal wallet wherever possible and only keep it on an exchange when you’re trading or cashing out and
When it comes to self-custody nothing beats a hardware wallet i have a list of the best ones on the market which you can watch by hitting that link in the top right when it comes to criminal activities it is true that ransom demands made by hackers often involve some kind of cryptocurrency while the cryptocurrency these hackers demand is often bitcoin they almost always
Exchange that bitcoin for a privacy oriented cryptocurrency like monero as soon as they can this is because bitcoin and most other cryptos have publicly viewable transactions and wallet balances this makes bitcoin transactions very easy to trace by authorities even more than regular currencies so it makes no sense for criminals to actively use and hold a currency that’s so easily
Tracked cryptocurrencies like monero are completely private and even the u.s government can’t crack its encryption which is seriously impressive if you think about it in sum then the overwhelming majority of cryptocurrencies are not used for criminal purposes there are just a handful of cryptos that are actively used by criminals the real
Risk when it comes to crypto relates to investing cryptocurrencies are extremely volatile meaning their prices can go up or down by up to 50 in a day investing too much in crypto can be extremely dangerous especially when you push your luck with something called leverage trading which basically uses borrowed money that’s why you should only invest what you’re willing to lose
And not a penny more not financial advice of course assuming it hasn’t been asked already the next question that will land in your lap will be along the lines of why are cryptocurrencies so volatile what gives them any value to begin with here’s my counter what gives the money in your wallet or in your bank
Any value now once upon a time it was backed by gold but that changed and since then all state issued currencies around the world have been losing value this is because the only thing that backs dollars and euros is ultimately the trust we have in the governments that issue those currencies and that trust has been eroding for decades not only that but governments have been
Actively printing and manipulating their currencies to benefit themselves and the corporations that fund them at the expense of the average person this has caused record levels of inflation that incentivizes spending over saving which leads to over consumption and causes the sort of environmental catastrophes they claim to want to stop you can direct
Them to my video on the massive fiat ponzi if they want further context anyways after that rant i usually go on to address the actual question cryptocurrencies are valuable because of what they do obviously this value changes depending on which cryptocurrency we’re talking about bitcoin has value because its btc coin
Has an economic profile similar to gold it has a maximum supply and only a small amount of btc is created each day and that amount is cut in half every four years assuming demand for bitcoin stays the same over time this would lead to a doubling of bitcoin’s price every four years however demand for bitcoin has increased over time as we realize how weak regular currencies can be and
This awareness has been enhanced by the current pandemic as basic economics dictate when something has a limited supply but the demand for it continues to increase prices inevitably rise many investors also see bitcoin as a safe place to park your capital outside of the current financial system including me one important thing to note is that most other cryptocurrencies are highly
Correlated to bitcoin meaning their prices are reliant on what btc does even though that’s the case some cryptos such as ethereum have insane value due to the utility they provide the ethereum network can be used to create those cryptocurrency tokens i was talking about earlier and you can even create decentralized applications and websites that can’t be censored or shut down all
Transactions related to creating and moving tokens and interacting with these applications require ether to pay for gas fees this means the demand for eth rises as the ethereum network gains adoption and ethereum has seen some serious adoption visa is testing payments on the ethereum network using that usdc token i mentioned earlier and the european central bank even
Issued a bond on the ethereum blockchain now the reason why the value of btc eth and every other cryptocurrency fluctuates so much each day is because basically nobody knows what these technologies are actually worth the prices of stocks and gold and even regular currencies fluctuate every day for the same reason but cryptocurrencies are much more volatile
Because what they do is revolutionary cryptocurrency networks make it possible to lend save and borrow without an identity credit score or bank they make it possible to do business directly with other people without a middleman taking a cut meaning service giants like uber and tech giants like facebook could become obsolete they make it possible for communities to pool their
Funds together and vote on how they should be spent which could eventually cut out the needs for governments and their crooked politicians you could even say that cryptocurrencies are the equivalent of a powerful alien technology that threatens the dominance of the powers that be now this potential makes the average crypto investor very emotional
The slightest possibility of a clampdown on crypto results in a market crash and the most outlandish rumor can lead to a massive market pump in the longer term however you can see that crypto is growing and that growth is unlikely to stop anytime soon now by this point in time you’ve probably more or less convinced your cohort that crypto is pretty legit and that means there’s only one question
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They have left to ask you which cryptocurrencies should i buy well before you answer that question you must remember to emphasize that nothing you tell them is financial or investment advice otherwise you could end up in court if their crypto investments go south and even if you’re legally covered you could still find yourself eating a knuckle sandwich or two if your guidance directs their greed to a financial
Gutter that’s why i usually respond with the following which cryptocurrencies you decide to invest in boils down to your timeline and risk tolerance in terms of timeline the cryptocurrency market seems to follow a four year cycle we’re currently in the bull market phase which is where prices gradually rise the crypto bull market could end as soon
As this fall and as late as early 2022 and the likelihood that you will sell your cryptocurrencies when they’re at their highest prices is slim to none although most cryptos have seen most of their gains for this bull market a two to three x return on investment is still possible and it’s even more likely if you decide to hold until the next crypto bull market fun fact buying and holding
Cryptocurrency will give you about the same amount of profit as actively trading crypto which i don’t recommend you do unless you plan on making it your full-time job when it comes to risk tolerance it might sound a bit funny considering cryptocurrencies are risky investments but there are varying degrees of risk even within the crypto market
Logically the more risk you’re willing to take the greater reward you stand to gain now the easiest way to measure risk and reward is to look at a cryptocurrency’s market cap this is an extremely important metric to check because the dollar value of cryptocurrencies can be misleading a cryptocurrency’s market cap is calculated by the current value of that coin or token
Times its circulating supply the reason why dogecoin is ranked so high is because it has a circulating supply of 130 billion and when you multiply that by dogecoin’s 30 cent price you get a 40 plus billion dollar market cap now you might think that dogecoin presents you with an easy opportunity to get rich quick but getting to just one dollar would require an additional 80 billion dollars
Of active investment and that isn’t all that likely to happen as a rule of thumb the smaller the market cap the more potential that cryptocurrency has to grow regardless of its dollar value that’s because it takes less money to increase its value now to use an extreme example yearn finance’s wi-fi token is worth more than bitcoin
But its market cap is 20 times smaller than dogecoin’s meaning it would take less capital to push up the price of wi-fi with the exception of dogecoin and a couple of others most of the cryptocurrencies in the top 10 by market cap could be considered low risk investments cryptocurrencies like bitcoin ethereum and cardano are likely to be around for many years
And they will likely double if not triple in price before this bull market is over the other 90 cryptocurrencies in the top 100 could still see gains of 3 to 5x but the further you move down the list the riskier the investment becomes because it also takes less capital to crash their price i would personally stay away from any crypto that isn’t among the top 200 by
Market cap because most of the quality projects have already come out of the woodwork and going any further is just gambling if you come across any cryptocurrencies that spark your interest you can learn about those by watching videos about them on an awesome cryptocurrency youtube channel called the coin bureau you can tell them to start with my video about how to do your own research which
You can find using the link in the top right well that’s all for today’s tutorial on how to talk to no coiners about cryptocurrency so if you liked what you saw let me know by smashing that like button remember to subscribe to the channel if you’re crypto crazy and feel free to send this video to your family and friends if you’re feeling lazy
Now i’d love to hear from you so how do you answer common crypto questions and concerns about crypto let me know by dropping me a comment below while you wait for my next flick to hit the tube here’s what you should do follow me on twitter tick tock and instagram and get your daily dose of crypto updates by joining my free channel on telegram if you feel like you’re falling behind the crypto market subscribing to my weekly newsletter is
The perfect way to keep up the pace it’s got everything you need to help you win your crypto race if you’re feeling generous you can support the channel by getting a shirt or hoodie from the coin bureau merch store i know you’ll find something you like you can find your way to all these resources using the links in the video description thank you so much for watching